John Paul Phelan (Fine Gael)

I have always highlighted the increases faced by motorists in duty and motor tax. The VRT regime must be rebalanced, whereby those who use their cars more, pay more, while those who use them less, pay less. A flat charge for all car users is inequitable and must be examined.

I was amused when the Minister claimed that because the Government did not raise the VAT rate this year, it showed its commitment to keeping inflation down. Ireland has one of the highest VAT rates in Europe. While the Government does not like to admit it, it increased the rate in its period in office. This was an area that could have seen useful changes.

The Government's main failure is not giving a commitment to reduce the number of those paying income tax at the higher rate. There was some tinkering around the edges today. The Government committed itself to having 20% of the working population paying tax at the top level. As matters stand, approximately 35% of employees pay tax at the top rate, a figure which will not be significantly reduced by today's announcement. This is another example of a broken Government promise.

Contrary to the image projected, almost €4,000 in additional taxation has been imposed on every household this year. Notwithstanding all the spin, this budget will not significantly reduce this figure and households will continue to face increased charges. I hold up my hands and admit the budget makes some steps in the right direction but considerable room for improvement remains. If the Minister had focused his attention on two or three areas rather than trying to satisfy everyone, he could have achieved a hell of a lot more.