Paul Coghlan (Fine Gael) | Oireachtas source

Our small business sector needs more support. This, please God, is in the pipeline. Many people have not yet witnessed the benefits of our recovering economy and some families are still struggling to make ends meet. However, if we hold our heads, the situation will continue to improve. The Minister for Finance will have more scope to assist matters further in the upcoming budget.

The addition of an annual spring statement sets out the broad directions needed for growing the economy and repairing the public finances, ensuring a fair sharing out of the benefits of the recovery among those already at work. Private sector employers are once again agreeing sustainable pay increases with their staff and the Minister for Public Expenditure and Reform, Deputy Howlin, has announced the Government's decision to commence discussions with trade unions on the issue of public service pay. All public servants have had their pay cut significantly. Most are also working longer hours. The size of the public service has been reduced by 10% at a time of growing demand for its services. However, all of this was necessary to help us secure stability in the public finances and our national economic recovery. With further improvement occurring, the right time is approaching to open up the prospect of a gradual, sustainable pay recovery for public servants from 2016 onwards linked to continuing reforms in terms of efficiency and effectiveness.

The plan's aim is to offer fair rewards for hard work, not quick profits for speculation. The USC introduced by the previous Government was an emergency penal tax on low and middle-income families. This Government intends to accelerate its phased abolition. Some 330,000 low-income families have been removed from the USC. In the last budget, an additional 80,000 low-income families were removed, the two lower rates were cut and those on the minimum wage were removed from the higher USC rate. It is intended that the upcoming budget will bring to 500,000 the total number of low-income workers who have been removed from the USC net. It is also intended to cut the 7% rate of USC on all those earning up to €70,000 per year. It is also intended to end the unfair tax treatment of the self-employed and small business people.

Strong growth in jobs is funding tax cuts for workers. Less tax on work means more jobs. The plan will reinforce a virtuous circle of increasing living standards, lower taxes, job creation and improving public finances. Our plan will ensure that work pays more than welfare and reduce the number of workers and their families experiencing poverty. Once the low pay commission makes its recommendation in July, the Government intends to respond with a package of measures in the October budget.

There is a renewed optimism in the country. The Government will continue working night and day to secure the recovery. At the next election, the people will have a clear choice between a stable and coherent Government that will secure and strengthen the recovery or instability. Populist promises to reverse every tough decision are nothing but empty rhetoric, irresponsible leadership and bad politics. They are not the solution to our problems. I have every confidence that when the time comes, the people will make the right choice.