Brian Cowen (Laois-Offaly, Fianna Fail)

I very much take Senator Mansergh's point in this regard. I agree with maximum flexibility and seeking to implement our programme to the greatest possible extent. If any party could tell me that it was able to implement every aspect of its programme within the period that it had set itself, I would buy its members a pint. That is not a big prize, but if they took a drink, I would do so. That is not to detract from our commitments. There is a genuine effort to implement the programme on all fronts, and we are enjoying great success in doing so.

I will stick to taxation issues, since those are what we are here to discuss. An Agreed Programme for Government stated the following regarding taxation:

The parties remain committed to the achievement of the taxation objectives set out in Action Programme for the Millennium. Over the next five years our priorities with regard to personal taxation will be to achieve a position where all those on the national minimum wage are removed from the tax net; to ensure that 80% of all earners pay tax only at the standard rate; to use the potential of the tax credit system to effectively target changes and to pursue further improvements in the income tax regime if economic resources permit.

The programme further states the following, "We will keep down taxes on work in order to ensure the competitiveness of the Irish economy and to maintain full employment."

Those statements are governed by an overarching commitment in the programme for Government on the need to pursue responsible fiscal policies and maintain the public finances in a healthy condition. The Sustaining Progress social partnership agreement states the following regarding taxation, in paragraph 3.3.2:

The scope for changes in the tax system to facilitate economic growth and employment creation will continue to be considered, as will the incentives for those on low incomes to take up employment. At the same time, the need to pursue responsible fiscal policies and maintain the public finances in a healthy condition will guide all taxation policy decisions.

It continues as follows:

. . . to the extent that there is any scope for personal tax reductions, progress will continue to be made over the three budgets contained within the lifetime of this Agreement towards removing those on the minimum wage from the tax net, moving towards the target where 80% of all earners pay tax at not more than the standard rate.

Taking those specific commitments and the context of the programme for Government and the Sustaining Progress social partnership agreement into account, to some extent the 80% target has been the victim of other successes, notably exempting taxpayers altogether. From one in four of a lower number, one in three of 2 million taxpayers has been removed from the taxation net. That is a greater step towards social justice than simply considering our having 80% of people on the 20% rate paramount.