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Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I have explained the policy rationale behind it to the Deputy. The Deputy has been good enough to acknowledge that the average wage in our country is €46,000. He accepts that it is important to make progress and to try to-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: It will be a long few hours if every time I try to respond to Deputy Doherty-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: Even before I had completed my answer to the Deputy, he said I was putting words in his mouth. We have a long few days ahead of us, which I am looking forward to, but I ask the Deputy to allow me to finish the point I am making. The Deputy is quoting median earnings and I have acknowledged that his figures are correct. I am talking about average earnings.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The Deputy used median earnings.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: They are different measurements of average earnings.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The Deputy is correct. I do not know why he is so defensive over that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The Deputy gives every hallmark of being defensive over there.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: For a man who is denying being defensive, the Deputy will not let me get a word out. I ask the Deputy to let me conclude. Before the Deputy interrupted me, I was making the point to him that the average wage is €46,000 per annum. There is a good case to be made that somebody on €46,000 should not be paying the higher rate of income tax. I am also making the case, which I...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The Deputy knows it is true.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I am talking about tax proposals and it is true.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I thank the Deputy for raising this. From finance Bill to finance Bill I am always happy to keep matters under review. I accept the issues that are being brought forward by Deputy Nash. As I have explained to the Deputy, due to the cost involved in the scheme and the way we have it structured, it is appropriate to maintain the parameters as they stand. In advance of every finance Bill I...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I see it as a holding measure. I hope that, over time, these matters can be better dealt with through pay policy, particularly if we are successful in building up the number of our personnel who are involved in this really important work. To give the Deputy a bit of information regarding the number of people using the relief at the moment, 189 enlisted personnel and 35 officers availed of...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: In respect of amendment No. 9, I acknowledge the difficulties that many parents face in paying the rent due for the residence used by their children while they are attending college. The credit will be available in such cases subject to all other conditions of this measure being met, provided the child concerned is undertaking an approved course and was under the age of 23 at the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I thank the Deputies. I very much acknowledge the pressure that so many are facing within our rental sector at the moment. I experience it in my own constituency clinic in the engagement I have with my own constituents. I am really aware of the pressures that have been referred to by Deputies Doherty and Mairéad Farrell. On Deputy Doherty's point about students over the age of 23...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: Yes, the figures we have for the bike to work scheme are currently an estimate that my Department prepares in conjunction with the Revenue Commissioners. In section 8, which we will be coming to in a moment, we are looking at how greater information could be provided with regard to the availing of reliefs. If we have an indication that the cost of the scheme is growing in any way, under...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: The Deputy put a question to me and I will repeat and conclude what I am saying. He does not believe it to be a priority issue that someone who is on an average wage is paying the higher rate of income tax. I do. We should change this, particularly at a time of higher inflation. For someone who is on €40,000 or €42,000, the benefit will of course be significantly more than...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: I accept that.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2022: Committee Stage (Resumed) (15 Nov 2022)

Paschal Donohoe: Does the Deputy accept that under Sinn Féin's proposals, somebody who is earning €37,685 or more would have a benefit of €313 per annum? Under the proposals in the budget, that person would have a benefit of €368 per annum.

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