John Kelly (Labour) | Oireachtas source

I welcome the Minister of State to the House. The budget was a good one and did not get the media attention it deserved. It lost out to the water issue. People will start to feel the budget in their pockets from the beginning of the year. Maybe then we will see an appreciation of what the budget contained. I recognise the moves that have been made in the budget to tackle USC this year. When Fianna Fáil introduced the USC, it was at a time when people realised that the country was on its knees and were willing to contribute. However, the USC is past its sell-by date. People need to feel more money in their pockets.

People who earn €12,000 per year pay little or no USC. I am not sure whether they pay any. If they earn more than €12,000, they become subject to the higher rate of USC. Home helps have volatile hours. They earn that type of money. They have no control over the hours they get. Earning more than €12,000 is not worth their while, as it makes them subject to a higher levy. There are two ways to tackle this issue. The sell-by date has been passed and the USC should be removed. The Minister for Finance asserts that the USC is here to stay, but it is not. In the next budget, we could decide that anyone earning €25,000 or less should pay no USC. In the following budget, anyone earning the average industrial wage or less could be removed from the net. In the following budget, anyone earning up to €70,000 could be removed from the net. The people who earn €70,000 probably take home €35,000 in their pockets.

I have no problem with high earners paying USC. The economy is growing. I support everything that my colleague, Senator Hayden, stated about the USC. I am no expert on finance, but I feel the pulse of the ordinary people on the ground. They are fed up with the USC. It has to be removed, and the sooner, the better.