Paschal Donohoe (Dublin Central, Fine Gael)

That €8.4 billion or €8.6 billion is mostly made up of corporate tax receipts which we know could be transitory and could go. In recognition of that risk, we need to ensure we have a tax system that can continue to bring in the revenue needed to pay for public services that matter so much within our country. The Deputy referred to an SNA and a nurse. I refer to the many other public servants who - the Deputy is correct - are paid considerably less than €140,000, not to mention all those in the private sector who also get paid much less than that. I say to them that I know a tax like this is a lot to pay for many but, in recognition of the difficult times many are still in, we have widened the band by 20% and cut the rate. It is why the vast majority of people will not move band. Those who stay within a band will pay more but those who end up paying more while staying inside the same band will face an increase of 5%, 6% or 7% on a bill they pay once a year or can spread out across the year. For those in band 5, for example, it means an increase from €499 to €523. I know that is a lot of money for many people, but it is an increase that will pay for the public services our country wants to see improve.

Sinn Féin has alternatives but I believe those alternatives will have impacts and consequences that, for example, the people did not accept in the general election last year. The people were not convinced by Sinn Féin's arguments. I have made the case for many years, and will continue to make it, that the measures Sinn Féin proposes would have effects that would damage our economy and, in turn, affect the jobs we wish to keep in Ireland which allow us to pay for our public services. That is the difference of view and it is one I will continue to make the case for, including in legislation like this.

I know the proposed increases we are debating this evening will be difficult for many. We are asking people to pay more at a time when the impact of two years of inflation is still being felt by many. However, if we want to have a way to collect taxes in our country that plays some role in protecting us from what could happen if tax revenues were to change – the global economy could change as well – we need taxes such as the local property tax. That is why this legislation is needed and it is why we have made such attempts, by widening the band and reducing the rate, to keep the increases as affordable as possible for those who will face them.

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