Pat Carey (Dublin North West, Fianna Fail)

Senator Doherty's recommendation would almost double the exemption threshold applying to the income levy from €18,304 to €37,000. The cost of such a measure would be €185 million in 2009 and €265 million in a full year. Not only would this measure involve a significant cost, it would also be 7% in excess of the average industrial wage for 2009. It should be noted that to maintain the current budget parameters, the cost of this recommendation would have to be recouped from elsewhere. I believe the current structure of the levy is fair and equitable. It is straightforward and readily collectable. The Minister has introduced measures in the Bill to ensure the lowest paid will be exempt from the levy. As the Minister stated in his budget speech, the levy is being introduced to allow income earners to contribute in a proportionate manner to the restoration of order and stability in the public finances. Therefore, I cannot accept the recommendation.