Brendan Howlin (Wexford, Labour)

I am always intrigued by Sinn Féin's enthusiasm for putting the squeeze on expenses and costs to the State. I answer many parliamentary questions on claims that are made. I answered a question last week on whether anyone has voluntarily given up their pay to bring it to a certain level. The reply stated that nobody in Senator Cullinane's party has done so. I can facilitate his party colleagues by forwarding abatement forms to them if they wish. I made the same offer to Deputy McDonald in the other House. That would allow them to yield back to the State an appropriate level of remuneration. All such contributions would be welcome. If the Senator is so minded and believes his pay or that of any Sinn Féin Member is excessive, he should lead by example and I will be happy to facilitate him.

The other House discussed at some length the general principle of having a public service salary ceiling of €100,000. The problem with this proposal is that it would put us on the road to privatising public services. Acute hospitals, for example, would no longer be manned by consultants, cardiologists and other experts in medicine if such a ceiling were in place. One would have a private system and members of the public would either pay for it or be excluded from it, whichever would be Sinn Féin's choice. Public servants should be treated in the same manner as private citizens and one should not determine that a person should be squeezed because he or she works in the public service. One achieves equality through a fair taxation system. All income, whether generated in the public or private sphere, should be treated the same. A fair taxation system equalises matters and we have a progressive taxation system. As I indicated, the marginal rate of income tax, if one includes the pension levy and universal social charge, is of the order of 62% on public servants earning in excess of €100,000.

The need to ensure a positive incentive is in place for effort, work and career advancement is being increasingly brought to my attention by working people. We should not pander to voices in the media who argue that everything done in the public arena is excessive and public servants are overpaid. I do not accept the logic of the Senator's view on that matter.