Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

The first thing that young teachers, nurses and other public servants should take from the Minister's response is that they should continue to campaign on this issue because their campaign is working. It is clearly the pressure of the ASTI, the TUI and the INTO, in coming together to oppose the latest deal which does not fully restore pay or deal with pay equality, that has forced the Government to acknowledge the depth of feeling and accept an amendment that at least proposes to examine the issue.

Action works. That is the lesson. The fact that the unions, driven by their grassroots, have come together in a united front against this is having an impact. The lesson is also for the rest of the trade union movement, namely, that they need to stand up against this kind of stuff and not accept there is no alternative to the partial half-hearted restoration and failure to deal with these issues the Government initially proposed. The Minister should honestly answer the question I posed.

I will give him a few other suggestions. If the cost of pay equalisation for new entrants into teaching, nursing and the public service generally is €200 million, how can the Minister, Deputy Donohoe, not make a commitment on €200 million when he will propose on Thursday of this week that a commitment be made to increase substantially the proportion of national income that is spent on weapons? We do not know the cost but the Government wants Members to vote through the agreement in a week. This is an issue that has been debated and is relevant. The Minister asked where can we get the money. The Government states we cannot make a commitment on getting the €200 million necessary for pay restoration but wants the Dáil to make a commitment this week to increase annually military spending in real terms towards a 2% of GDP target. That will involve substantial and dramatic increases far in excess of the €200 million it would cost to restore equality for teachers, nurses and other public servants. How can the Minister give a commitment on one when he will not give a commitment on the other? I note the issue of pay equality is a far greater priority for the people, particularly young people in those professions and in the public service, than is boosting the profits of the European arms industry.

Another suggestion is a financial transaction tax. The estimated yield involved has increased because financial transactions have dramatically increased. I refer to the culprits for much of the crash that led to this pay inequality in the first place. Why will the Minister not levy a 0.1% tax on financial transactions? That would raise €500 million a year or more than twice what the Minister needs in this regard. Why will the Minister not even entertain it? The Minister could do that. The losses brought forward mean the banks are making big profits. AIB is one of the most profitable banks in Europe at present and is paying zero tax because of tax loopholes. What about closing that one down? That would give us the €200 million.

What about a wealth tax on the exponential growth in the wealth of the top 5% in Irish society? Wealth taxes are not unusual across the rest of Europe but in Ireland, of all places, there has been spectacular growth in household wealth. It is has increased by 49% since 2012 and the overwhelming majority of that is concentrated in the hands of the top 5% or 10% of the population. The Minister will not even consider a wealth tax and states it is too difficult to impose. It is not difficult to cut the pay of new entrant teachers but apparently it is complex to tax the extraordinary wealth of the richest 5%.

Another suggestion for the Minister is to take a little extra from the corporate profits that have more than doubled since 2008. A sum of €200 million is a drop in the ocean compared with the €70 billion plus in extra profits they are making now. There were €149 billion in aggregate profits in 2015, up from approximately €70 billion in 2008, on which they are paying on average 6% real effective tax. Could the Minister take a little bit more off them? That €200 million would be a drop in the ocean compared with that but the Minister has resolutely refused to consider that. Ultimately, €200 million is a small price to pay for pay equalisation and to provide fairness to new entrants in the public service including teachers, nurses and other public servants.

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