Paschal Mooney (Fianna Fail) | Oireachtas source

While many people may pay more PRSI, as the Minister has said, they will not accrue any additional benefits. Therefore, the self-employed will continue to remain outside the net in this regard. This has been an ongoing difficulty, particularly for those self-employed people who had worked for some time in the construction industry whose income in the past three or four years has been practically wiped out. Is any succour being given to those self-employed people or will they continue without getting any benefits?

Currently, people renting a spare room in their house are exempt from income tax on the rent received under the rent-a-room scheme. With the abolition of this provision, tens of thousands of people will now have additional income tax and PRSI liabilities. I understand that for savers it will mean a tax rate of 45% on deposit interest. The Minister referred to 2.5%, coming up with a figure of €240,000, which coincides with the reckonable unearned income of €6,000. I have not seen 2.5% anywhere. I believe the best rate available is approximately 1.8% or 1.9%. With the withdrawal in recent weeks of ACC Bank and Danske Bank leaving only the two pillar banks and Ulster Bank as a third, I have no doubt that the emerging duopoly will further reduce interest rates and make it even less attractive for savers. I know we can quibble over the figures the Minister has quoted, but ultimately on two levels this imposes a penal tax on those at a vulnerable stage in their lives and the self-employed will receive no additional benefit as a result of this abolition.