Peter Fitzpatrick (Louth, Fine Gael) | Oireachtas source

I welcome the opportunity to speak. As everyone on both sides of the House is aware, a fair, efficient and competitive income tax system is vital not only for economic growth but also for job creation. Since this country was plunged into economic chaos by the reckless policies of the previous Fianna Fáil-led Government, our citizens have gone through what was probably the worst financial crisis in the history of the State. Over 300,000 jobs were lost, our economic reputation was in shreds, we lost many of our youngest and brightest citizens to emigration and we lost our financial independence. In the four years since we took office, we have turned this situation around. Today, we can stand here and say we have regained our financial independence and seen the back of the troika. Over 100,000 new jobs have been created. We are on track to have full employment by 2018. By that year, we will have net immigration and we will see the return of many young people who had to leave these shores in order to secure employment. We have ended austerity. There is a new confidence to be found among our people.

The proposal before the House totally ignores the fairness and progressiveness within our income tax system. Indeed, the proposed measures would do huge damage to our economy if they were introduced. The proposals before the House would be disastrous for my constituency. I am finding a new optimism and hope among those who attend my clinics in Dundalk, Ardee, Drogheda, Dunleer and Carlingford. People are securing employment, which is vital in the interests of bringing people out of the poverty trap. The new-found confidence and optimism that I am seeing at first hand on a daily basis does not suit our political opponents. It does not suit them to have an electorate that is starting to find its feet again. It should be noted that our tax system is extremely fair, especially to people on low incomes. Those who have brought this motion to the House completely ignore the fact that 40% of earners are not liable to income tax.

We have also cut income tax rates for everybody earning less than €70,000.

Substantial reductions in the universal social charge, the USC, have been introduced to relieve those on low incomes. We have removed over 410,000 people from the USC. Core social welfare rates have been protected in spite of the difficult circumstances. Ireland has the most progressive income tax system in the European Union It should be noted that the top 1% of income earners pay 21% of the total income tax and USC, the top 6% pay 44% and the top 24% pay 80% of all income tax and USC. From these figures it is clear that we have a system where we have a relatively high tax on high earnings and low or zero tax on low incomes.

The new-found optimism and confidence of the Irish people as a result of the improving economic climate, does not suit the Members opposite. I would ask them to visit County Louth where we have seen a dramatic drop in the unemployment rate which has resulted in almost 3,500 fewer people on the live register. The proposal before the House would put in danger all of the hard work and sacrifices made by the people of this country over the past few years and I would question their motives for doing so. The only reason I can see for putting this motion before the House is purely populist political gain and for this reason I firmly believe that the people will see through it.

Over the next 12 months the people of this country will have some very important choices to make. Will they keep the Government that has managed to fix our finances? Will they go back to a government which brought them financial chaos in the first place or will they choose a government that will put everything at risk with false and populist promises? One has only to see what is happening in Greece to see the chaos this would bring. I know from the many people who call to my constituency office that they want security and a real future and that a Fine Gael-led government is the only option in this regard. I totally reject the motion before the House. This country needs more of the same fair and progressive policies of this Government that have resulted in the great progress made since we took office.

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