Pearse Doherty (Sinn Fein)

I apologise, but I want to go back through my earlier point. Perhaps the way in which I articulated it was not clear enough or the Minister of State has deliberately not understood my comments. I will try to make it simple.

Regarding the cuts in section 2 specifically, I want the Minister of State to clarify something for me. From the figures furnished to us by his Department, two thirds of public sector workers in County Donegal earn less than €20,000. One such worker will, as a result of section 2, take a 5% cut. Let us imagine the person, like 50% of the population, is outside the tax net. Let us imagine a public sector worker in County Donegal who earns €160,000. As a result of this section, he or she will take an 8% cut. Since the second person is in the tax net, however, the net decrease will not amount to 8%. A comparison between this and next month's net pay would not show a reduction of 8%, as 41% of that percentage will go to the State in the form of taxes, never mind the other levies. Some of the reduction is a reduction in the amount to be paid to the State. We can acknowledge this.

In a comparison between the two Donegal workers' pay this and next month, the reduction in respect of the person on less than €20,000 will be 5%. There is no doubt about that because the person does not pay any tax to the State. The reduction for a person who is earning €160,000 will be less than 5%. I want the Minister of State to tell me whether I am wrong or right in this.