Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I can assure the Deputy that, as was the case in the last couple of budgets, we will not be giving tax cuts to the wealthy alone. Tax cuts will be focused on those with middle incomes. We have already taken people on the lowest incomes out of the tax net altogether and we have relieved them of the burden of the USC, which Fianna Fáil imposed on them. Some 38% of the lowest earners do not pay any income tax. Now the focus will be on those on middle incomes. People on modest incomes of approximately €40,000 pay the highest rate of income tax on some of their income. We believe that is unfair. We stand over our policy of taking the lowest paid out of the tax net altogether and now focusing on those on middle incomes. I will defend that to the hilt because it is the right thing to do.

The Deputy is correct that the population has grown, and spending must increase in line with population growth. However, we have done better than that. If spending had only grown in line with demographics the pupil-teacher ratio would have stayed the same, but we have improved on that. That is why we have the lowest pupil-teacher ratio ever this September. There are also more resource teachers, 500 new guidance counsellors, 500 deputy principals to give schools better management, as well as junior cycle reform. In terms of prioritisation, we wish to prioritise the families who are struggling the most. We have reversed some of the cutbacks to the back to school clothing and footwear allowance that were imposed by the Deputy's party in government. We have not fully reversed the cuts but we are getting there in that regard. I have also introduced the school books scheme which has been of value to parents and we are expanding the school meals programme, which is very important particularly in DEIS schools.

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