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

We did reduce taxes in the budget, both the USC and income tax, and people will see that reflected in their pay slips in January. I am glad we were able to do exactly that. I am also glad to report that inflation is now easing. It is now at approximately half the rate it was at this time last year and needs to fall further. Those are the facts.

I stand over what the Government is doing when it comes to improving pay and terms and conditions for workers. It is something I have been working and leading on for many years now, as Minister for Social Protection, Minister for Enterprise, Trade and Employment and now as Taoiseach. I am determined to see through the introduction of a living wage, auto-enrolment so that all workers, particularly those in the private sector, are entitled to an occupational pension on top of the State pension, and the introduction of sick pay. This is the right thing to do and I said so at Limerick Chamber. I said it is the right thing to do because we should make work pay. If we make work pay, more people will work. There are 2.6 million people now working in Ireland, more than ever before, and that is a very good thing. If we make work pay, people have more money to spend in those small businesses the Deputy talks about and that will benefit business too. However, we have to do it in a way that is gradual and does not happen too quickly because there is a risk of damaging business and reducing employment if we move too quickly.

Recognising the increased costs that businesses face, we have set aside €250 million to help businesses, particularly small businesses, in the new year. The Minister, Deputy Coveney, is developing that scheme at the moment. It is going to cost approximately €250 million and 90% of rate-paying businesses will benefit from it. The total amount that will be paid out will be double what was paid out this year through the temporary business energy support scheme. That is being done in recognition of the fact there are businesses that will face increased costs and we want to help them out with that but we are not going to depart from doing what we believe fundamentally is the right thing to do, which is to make sure that people who work in Ireland are paid a decent wage, have decent terms, conditions and protections and a pension when they retire.

See this speech in context