Derek McDowell (Labour)

Forgive me for commenting that these recommendations are obviously out of order, notwithstanding that amendments of this kind have always been allowed in this House. Senator Mansergh is right in that all we can expect to achieve in this House is to have a reasonable debate about issues during the course of the two and a half hours available to us. None of us is naive enough to think the Minister will change the contents of the Finance Bill 2006 at this stage.

I just want to get a sense of where we are going on the issue of the standard rate band. It is stated Government policy to reduce the number of people paying at a marginal rate of 42% to 20% and this has been repeated in social partnership agreements. I have never been concerned about the marginal rate, as the percentage of people's income that is paid in tax is much more important. However, it is stated Government policy and as the Minister knows, the trend has been that more people are paying at the marginal rate every year. Is he committed to reducing the proportion to 20%? What timescale does he envisage for this? Is it a matter of basic principle or is it a matter of urgency?

The other issue that arises in the context of the standard rate band is the issue of individualisation. The Minister was extraordinarily careful in his last summing up. I hope I do not paraphrase him incorrectly, but I think he said that he is not committed in principle to doing it, but would review it at each budget. That is close to accepting that he does not regard individualisation as a principle, but is simply a matter of pragmatic consideration from time to time. Is he committed to arriving at a situation where individual bands exist for the standard rate? I appreciate that he will not do it next year, but if he remains in his position in a couple of years' time, would he see this as something to achieve?