John Kelly (Labour) | Oireachtas source

I support the call by Senator Harte for a debate in this House on the issue of poverty. We all know that poverty comes in all shapes and forms. It is evident every morning in the number of people lying in sleeping bags in doorways, the number of people on social welfare in poverty and the often forgotten middle-income earners who are now the new poor, including prison officers, gardaí, teachers and nurses who simply cannot afford to take any more pay cuts.

I agree with the remarks made by Senator MacSharry in regard to the suggested 3% increase in tax on higher earners, which was ignored in the last budget. I believe the increase in this regard should be even higher. We should return to what was done in the 1980s when we also needed money, namely, the introduction of a third tier of income tax of up to 60% on the income of high earners.

There has been much talk about people on social welfare being exempted from paying the property tax. I have spoken on this issue on several occasions in this House. It is regrettable that people on social welfare will have to pay this tax. We are constantly told by members of the Opposition that it is not worthwhile for people to take up employment because they are being given everything for nothing. If, as proposed, those on social welfare should be given medical cards and exempted from paying the property tax, then there will never be an incentive for people to take up employment. The man with 14 children who is in receipt of ¤60,000 in benefits per annum was mentioned. It would not be worth his while taking up employment. Perhaps it is time the Government considered limiting payment of child benefit to families wherein their are five or six children. I am not in this regard having a go at children or families. We must ensure people are incentivised to work. If we continue to pay people to stay at home we will never achieve anything.