Robert Dowds (Dublin Mid West, Labour) | Oireachtas source

Deputy Finian McGrath knows that without the very skilled work that the Minister did, the Haddington Road agreement would not have been delivered. It took enormous courage and perseverance on his part. I can contrast that to a remark he made to me in conversation during the early days of the Government that he was almost in despair as to whether we would get out of the economic mess. To struggle through that on behalf of the Irish people, who have had to suffer a great deal, was a monumental achievement. That, along with the achievements of other Ministers, needs to be focused on.

In line with this work, the Minister is correct to move away from the Financial Emergency Measures in the Public Interest Act FEMPI, in careful steps. While I know this is obviously not for discussion now and will be subject to negotiation, there is a strong case for flat increases in public service pay across the board. It would have an added benefit for those on low incomes in the public service. Helping them will also help the economy because they are more likely to spend their money locally then people on higher salaries.

It is useful that some relief for the universal social charge, USC, will be introduced. An area that should be examined is the marginal tax rate kicking in at such a low level. At the same time, I want to sound a cautionary note. Tax is very important. One of the reasons why this country works is because the Revenue Commissioners are effective. If one does not believe that, one can look at the example of Greece. It is important that we consider carefully the significant amounts that need to be invested in health, education and transport.

On the latter issue, I appreciate this is for another debate but I want to flag it. We have the great fortune that Dublin city is booming because of the improving economy, as can be seen from traffic on the roads. If this city, and to a lesser extent, cities such as Cork, Galway and Limerick, is to thrive, then it is important we put money aside for investment in transport. It would be hugely useful if an interconnector was built to link Heuston Station to the south of the city to link up with the Luas on Stephen’s Green and the DART. It would have a considerable and transformative impact on the development of good public transport in Dublin city. Given that most of the development in housing and so on is likely to be on the western side of the city, it would be well worth planning for that.

There has been a great deal of talk about the need to reduce the level of USC. Some people have even called for its removal. Whether it is removed or not, it is important to remember it brings in €4 billion in revenue. It is a great way of taking money from wealthy people. The amount of USC a Deputy has to pay comes to €5,424. It is important that this money is taken from those on good salaries and higher salaries. Whatever mechanism is used, it is important that those who can pay are encouraged to continue to pay this charge.

I welcome the fact the economy is in such a positive situation. I hope that as we progress, we will do it in such a way that the whole community benefits and that we bring this country to a better place.

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