Fergal Browne (Fine Gael)

I welcome the Minister. I apologise for the absence of my colleague, Senator Higgins, who has asked me to deputise for him. Hopefully, I will be able to deliver a few political blows on his behalf, although that may be difficult.

The Minister referred to the low tax base but it is important to point out that while we have one of the lowest levels of taxation in the EU as a percentage of our GDP, statistics show that more than 50% of taxpayers are now paying tax at the higher rate of 42%. In 1999, personal tax credit under the equivalent tax code amounted to €1,000. By 2001, the Minister had reduced this to €814. In 2002, it had doubled to €1,520 and in 2003-04 there has been no change, so it has been eroded. The year 2002 was significant as a general election was held, so I do not need to dwell further on that point.

The Bill is flimsier than most of its predecessors because the December budget contained very few financial measures. In his budget speech, the Minister spoke predominantly about decentralisation. This caused much surprise because people felt that a budget speech was not the place in which to outline such proposals.

Since its election, the Government has introduced 27 stealth taxes and is the primary culprit in the creation of a rip-off society. While the Minister may talk about low taxation, and few in the House would disagree with him on that point, he should also mention the stealth taxes that affect our daily lives. They range from the non-indexation of tax credits to higher VHI and ESB charges, and as a result the Government is responsible for 100% of inflation. The stealth taxes introduced in 2002 were as follows: VAT went up 8%, motor tax rose 12%, hospital charges increased by 26%, drug refund scheme up 31%, VHI up 18%, cigarettes and alcohol, up 15%, bank and car charges, up 108%, bin charges, up 29%, ESB bills, up 13%, college fees, up 9%, parking, up 25%, bus fares, up 9%, and the TV licence, up 40%.

In the November 2003 Estimates the drug payments scheme threshold rose by €8 to €78 per month, accident and emergency charges increased €5 to €45, and the cost of private beds in public hospitals rose by 15%. The cost of an overnight stay in hospital has risen by €5 to €45, with a cap of ten nights per year. The third level student registration fee increased by €80 to €750 while the reintroduction of third level fees remains a possibility. The fee for junior certificate examinations increased by €10 to €82 while the fee for sitting the leaving certificate increased by €10 to €86. Development levies will increase from €6,000 to €30,000 and will raise €700 million from house buyers. The minimum contribution all recipients of supplementary welfare allowance rent-mortgage supplement are required to make towards their accommodation will increase by €1 to €13 per week and the allowance is no longer available to couples where one member is in full-time employment.

The fee for a standard ten year passport increased on 1 March by almost one third from €57 to €75 and there has been a significant percentage increase in the cost of children's passports, which is grossly unfair. The cost of a three year passport for infants has increased from €12 to €15 and that of a five year passport for those aged three to 18 from €12 to €25. The emergency fee for passport applications processed outside office hours has been increased by €37 to €100 for adults. Motor tax increased by 5%. Further stealth taxes were announced last December, including an increase in bus and rail fares in line with inflation.