Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

The second home tax has been abolished. That ¤200 plus the ¤100 would have provided ¤300, in any event, but this is a tax on the family home. It is not really a property tax. I worked out a quick calculation when I came into the Chamber. A couple with three young children who have an income of ¤37,000 will have their property worth ¤175,000 valued at ¤316 for property tax; they will be hit by ¤456 on child benefit, and because they are both working they will be hit by ¤540 in PSRI. Effectively, their income will decrease by ¤1,300 per annum, without factoring in some of the other costs in terms of spending cuts and stealth tax increases. Whatever way the budget is dressed up, it means that the lowest income earners in society are going to be hit very hard.

When we talk about the most isolated and vulnerable people in society, generally we are talking about social welfare recipients. However, this is now being turned on its head. The new most vulnerable are the middle income earners, who are being squeezed. A deal was done before the budget. It is now apparent that the deal meant that those on social welfare, which is ¤188 per week, would be protected, but the price of this was that the Government would not go after people who have incomes in excess of ¤100,000.

It was designed to protect what Fine Gael perceived to be its vote base. That is wrong. People with incomes in excess of ¤100,000 per year - there are over 100,000 such individuals - should have been targeted in the budget. However, that opportunity has been missed.

I suggest to the Leader that, if possible, the House should engage in a more reflective debate on the budget prior to Christmas but after the exact details relating to each Department have been made available. I appreciate that time constraints apply this evening, but we would really appreciate the opportunity to discuss the budget in more detail either next week or the week after.