John Paul Phelan (Fine Gael)

There have been reductions in income tax but the myth that this is a low tax economy needs to exploded. This is not a low tax economy; it is low in terms of direct tax but quite high in terms of indirect taxation. Indirect taxation is the most unfair taxation of all.

The biggest scandal perpetrated by the Government in taxation policy and public finances is in regard to the tax bands. A commitment was given in the previous programme for Government that the tax bands would be index linked and that this would be done at every budget following on from that programme for Government, but that has not happened. That is another broken promise by the Government. I am disappointed at Progressive Democrats Members taking the high moral ground on this issue. There was a great deal of hot air before the last general election about what would happen following the election. The Government increased spending across the board. As soon as the election had taken place and it was re-elected, spending was significantly reduced across the board. Commitments were entered into in the programme for Government regarding medical cards and increasing the numbers of people eligible for same. Those commitments have not been honoured. Commitments were also given to increase the numbers of gardaí on the streets but they too have not been honoured.

It would be more realistic and appropriate to have a genuine discussion on the broken promises of this Government since re-election. I appreciate the opportunity to participate in this debate and fully support the Fine Gael amendment.