Charlie McCreevy (Kildare North, Fianna Fail)

The intention of this recommendation is to double the home carer's tax credit from €770 to €1,540. It is estimated that to increase the credit as proposed would cost in the order of €72 million in the first year and €103 million in a full year. Given the resources available to me in budget 2003, I made only a limited number of changes in the personal tax system at a total cost of €186 million in a full year. Apart from the increase in the employee tax credit which is designed to ensure 90% of the minimum wage will continue to be exempt from tax, there were no increases in the generality of personal tax credits nor in standard rate bands. The budgeting position would not allow it. In the circumstances I am sure Senators will appreciate the reason I cannot possibly accept this recommendation which would be extremely costly relative to what was possible to devote to tax changes in this year's budget.