Michael Brennan (Progressive Democrats)

I wish to voice my support for the motion. Previous speakers have spoken about the importance of our taxation system to sustaining our economic development. Reference was also made to the fundamental importance of a fair system. Rather than repeat what others have said, I wish to discuss fairness, especially for older people. As my colleague, Senator Minihan, correctly stated in the past, a progressive tax system is based on the ability to pay. We all recognise that some older people find themselves unable to pay all of the bills and charges with which they are presented.

The Government has committed itself to implementing a full range of policies aimed at supporting older people, including delivering decent pensions and greatly improved care services. Progress on this commitment is welcome — for example, the €12 per week increase for the old age pensioner in budget 2005, the proportionate increase for contributory pensioners on reduced rates, the additional revenue funding allocated to services for older people from 1997 to 2004 of €286 million and the additional €15 million allocated for services for older people in 2005. There are, of course, many other initiatives which benefit older people from various Departments and agencies.

I am concerned, however, that there are areas of expense for older people which need to be looked at again — for example, the cost of domestic waste disposal. There is now a wide range of charging regimes and costs in respect of waste management. The introduction of measures such as a broad increase in the old age non-contributory pension to address this issue is not feasible. The challenge is to design a system to assist older people who rely on private domestic waste collection which takes into account the different local arrangements.

The Minister for the Environment, Heritage and Local Government correctly states that the setting of waste management charges and the introduction of waivers in respect of waste charges is a matter for each local authority and I accept a number have done so. My main concern is the ability to pay. In an area where a private operator handles waste management, there may be no waiver available. This can place older people in a difficult situation. For many older people, they must have a physical disability to avail of this service. Where no waiver exists, we effectively have a regressive charge if ability to pay is not considered. The sense of fairness is diluted. There is a case to be made for old age pensioners. The Department of Social and Family Affairs should include a refuse charge allowance under the free schemes in operation such as free travel, ESB allowance, telephone rental, television licence and fuel allowance.

I applaud the Minister and his Department on the progress which has been made but I hope that in time when the balance of tax schemes and incentives are being evaluated, the difficulties of systems such as waste charges are also kept in mind. I would like the relevant Minister to look at local authority charges, especially where group housing is concerned, to question the eligibility of that scheme and to see if it is legal. I wish the Minister well in his forthcoming budget.