Ivana Bacik (Independent)

I echo Senator O'Toole's words because I, too, watched the news at 9 p.m. and the one in ten figure stood out starkly for me, as it is doing for people all around the country tonight. Clearly, there is a lack of confidence in what the Government is doing to tackle the enormous economic downturn and problem we are facing. There is a will among people to share the burden. All of us want to play our part in trying to bring about an economic recovery. That includes Members on both sides of this House and of all shades of political opinion in the country.

What we are not seeing from the Government is any leadership or sense of strategic planning to get us through this economic recession and to point us towards recovery. Instead, we are seeing some piecemeal measures. In fact, Senator Boyle referred earlier to the Bill before us as an introductory measure, the start of a series of measures. Where is the series? Where is some sense from the Government of the shape and structure the series will take in the coming months or years? We just do not know.

The ICTU has done us all a favour in putting forward a coherent ten-point plan. It said itself that it is flawed, that it is by no means perfect, but at least it is based on a model of recovery that was used in Sweden. Many of us heard the architect of that plan, the Swedish policymaker, speak about it and he said the main point of the plan was that it hurt all interest groups — that everybody complained. He knew then that it would be more effective that way. It was fair and it had general application. That is exactly what we are not seeing from the Government's Bill before us tonight. We are seeing a mere tweaking of cost cutting in this plan but what we are not seeing, as Senator O'Toole said, is any honesty about the need to raise revenue by raising taxes through a progressive taxation system that hits the rich and those on high incomes, both in the public and private sector.

I have put on record previously the fact that I approve in principle of the need for public servants to pay a levy, if one wants to call it that, in recognition of the fact that we have secure pensions. What I do not approve of is the inequitable application of the levy to those on very low incomes in the public service. All of us on higher incomes should be paying something more than those who do not have security of tenure and the benefit of a public sector pension. I do not believe the low paid, namely, nurses, firefighters and those on entry level in the Civil Service, those we saw out on pickets from the CPSU today, should pay a levy of 3% or even 6%. The threshold should have been set higher.

The Government had to tweak what it called the 1% levy — the income tax measure that was introduced last year — to exempt those earning below a certain amount. I do not know whether the Minister is listening but it is fair to say that his colleagues said initially there would be no tweaking of the 1% levy and there was subsequently a tweaking. It is unfortunate that people then came to expect when the pension levy was introduced that there would be some tweaking or adjustment. There is some indication in section 8 that an exemption can be provided if the Minister so wishes. There is an uncertainty about the application of the levy.

I have been approached by people who work in the public sector who do not have security of tenure, who are on fixed-term contracts but who get some payment in lieu of pension and therefore will be covered by the legislation. They are concerned about having to pay a levy on very low incomes. Clearly, it will hit them more than it will hit those of us on higher incomes in the public service. What we need is a more coherent plan, one that will impact fairly and equitably on all sectors of society, especially the higher paid.