John Dardis (Progressive Democrats)

The policies of maintaining full employment and strengthening the competitive position of the Irish economy by means of low labour taxes has worked for Ireland. The take home pay for the average industrial earner has increased by more than €11,000, or 82%, since 1997 and far greater numbers of people are at work.

Strangely, the Opposition claims that this reduction in taxes has been detrimental to public services. When I first entered this House, the standard argument against tax reduction was that it would lead to the diminution of public services. No one accepted that it would lead to an increase in revenue, yet that subsequently transpired. The Opposition would allege that spending on public services will inevitably deteriorate if people keep more of their wages. It is a strange claim because, while take home pay has significantly increased, average annual health spending per citizen has also increased to €2,500, average annual education spending per person in full-time education now exceeds €7,500 and average annual social welfare spending per recipient now exceeds €12,500. This has been delivered by the careful and efficient management of the economy.

It is often easier to look at specific taxation policies in isolation or juxtaposed with the specific challenges that unquestionably still remain, such as those that arise in terms of poverty, exclusion and alienation. This will undoubtedly be the subject of many of this evening's contributions. However, it is a flawed approach and does nothing to allay the fears of the public regarding Opposition taxation policy, if such a policy actually exists. It is wiser, if more difficult, to take a nuanced view of tax measures by asking how they fit within the overall plan. Rather than staring at the trees, can one step back and look at the woods, that is, the goals for the economy and society?

Sustaining Ireland's strong economic growth and employment performance cannot and must not be taken for granted. The reduction in our unemployment rate over the past ten years from almost 15% to 4.4% is the single biggest political achievement of this generation. Among its positive effects on society were the opportunities it gave us to tackle the aforementioned challenges and to end the exodus of Irish people to other countries.

Contrary to some claims, the facts show we now have a tax system that benefits lower income earners over higher earners. Higher earners, rather than those who are on modest or low incomes, pay the majority of tax. The top 25% of income earners now pay 80% of all income tax raised by the State. The Government pursues a fair tax system. The Progressive Democrats support low taxes but not the payment of no tax regardless of high income.

It is in this context that I move this motion. I am proud to be associated with a Government that has transformed this society for the better so that we are now confident, outward looking and conscious of the needs of those who are disadvantaged and need protection. We wish to provide the resources made available from taxation to offer that protection.