Mary Hanafin (Dún Laoghaire, Fianna Fail)

The recommendation of the Commission on Taxation was that it should it be taxed which Senators have recommended today. If we were to do this, a middle income earner would see an effective reduction in child benefit of €66. If two people are earning, they are paying tax at 41%; therefore, child benefit would be taxed at that rate, meaning it would be reduced to €100. That would be far more penal for working families. It was not just because of administrative reasons, but that is one of the reasons I did not support such a measure.

This is a universal payment, but it is not a universal cut. We have protected those at the bottom who are dependent on social welfare and in low income jobs. Both here and in the Dáil Members have talked about the meanness of men. It is not a general attribute, but there are women, even in the high income bracket, for whom this is their only payment. I recognise this, which is why we did not take it from them. Much thought has gone into making this cut.