Derek McDowell (Labour)

I have been over this territory many times and am not sure I have the energy to do so again but I will try. Shortly after the 1997 election the removal of the minimum wage from the tax net did become part of Government policy. It was restated in the programme for the millennium and restated again last year as Fianna Fáil policy. It is again in the draft of the Sustaining Progress programme which is currently being considered by the social partners. It is now long established Government policy to take the minimum wage out of the income tax net. That is for good sound solid reasons.

I do not have the Minister's fixation with tax rates. It would not disturb me to increase the tax credits and to have to find some compensatory method, within the tax system, of paying for that. I acknowledge that things this year are tighter and that there is not scope for net reductions in income tax.

I am not as upset as Members were in the other House, if my reading of the debate is accurate, about the failure to index. I understand the reasons for that. However, it should have been done several years ago because it would have been easier to maintain. We must now move to take the minimum wage out of the income tax net.

I accept some of what the Minister said about the Government's treatment of lower paid workers. He did not front load it because it did happen, although it was primarily as a result of the introduction of tax credits. Nonetheless, I give praise for that. It was a worthwhile and progressive move which will stand to us in the future. I suspect the Minister agrees with me that there is a case for virtually everyone who works to make a social contribution.