Damien English (Meath West, Fine Gael) | Oireachtas source

We are not oblivious to that fact, and we share the Deputy's concern. That is why a priority for us on coming into government was to try to ensure the working person would not always be hit with increased charges. The Deputy will have noted that in the first three or four austerity budgets, for whatever reason the majority of changes in respect of charges and taxes affected income tax, which affects the working person. The Deputy specifically raised the issue of the working person. We have tried over the past three or four years to address this. It was not the plan originally agreed, so I am not discovering or taking credit for this, but the overall concept of trying to broaden taxes across the board so as not to hit the working person constantly was an objective. Not everyone likes that. Not everyone likes to have water, property or other charges, but having them means one is not constantly increasing income tax. It has to be always worth one's while to go to work, but that has not always been the case in this country. The Government is trying to ensure it is worth one's while at all times, and that means not always raising income tax and, if the opportunity arises, reducing it to try to create more jobs. It is a question of not increasing the rate always. I hope the Deputy understands what we are trying to do in that regard.

The overall funding of universities and higher education is being considered. We will all have to make decisions on that. It will not be a matter for one particular party; each one needs to have a strong position on it.

The Deputy asked about pensions. Contributions to pension schemes and pension or retirement products, within the limits allowed by the Revenue Commissioners, are deducted in determining the reckonable income of an applicant. Similarly, a deduction for the public service pension levy is also allowed where it has not already been reflected in the pay figure shown on the person's P60. Pension contributions by means of a personal retirement savings account, PRSA, retirement annuity contract, RAC, or additional voluntary contributions qualifying for tax relief, appearing on a P21 or notice of assessment on the panel showing tax credits, can be deducted when calculating the reckonable income for student grant scheme purposes.

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