Mary White (Fianna Fail) | Oireachtas source

I am sure Senators are aware that yesterday the British Chancellor, George Osborne, announced dramatically in his budget that a retired couple who wish to downsize or to bequeath their home, worth up to £1 million on their deaths, can pass on the value of the home to their children without paying tax.

Figures from the 34 Organization for Economic Co-operation and Development, OECD, countries show Ireland has one of the toughest inheritance tax regimes in the world and Dublin accounts for over half of all inheritance tax paid last year. The current situation of inheritance tax in Ireland shows that there is a clear anti-Dublin bias. The increase in property prices, particularly in Dublin, is generating a massive tax burden for families who inherit homes from their deceased loved ones. In Dún Laoghaire-Rathdown the average price of a three-bedroom house is €500,000. The threshold is €225,000 and the tax rate is 33%. The blow is that in the midst of being overwhelmed by the deaths of their parents, people must pay this tax up front. There should be a dramatic change in the approach to inheritance tax. The threshold should be changed. In 2000 it was €381,000. To be fair, it should be raised to €400,000 and the rate dropped to 20% because 33% is too high. It is ridiculous putting a burden on children of parents who have worked hard and want in their hearts and souls to make sure their children have a good quality of life. They must pay this tax up front. They might have to sell the house to pay the tax and gain nothing from it. It is a very serious issue for everyone but particularly people in Dublin.

The Labour Party Whip, Deputy Stagg, sent a dramatic e-mail to a constituent, saying that he and many others in the Labour Party are totally opposed to the cuts to the one-parent family payment, made by the Tánaiste and Minister for Social Protection, Deputy Burton, Leader of the Labour Party. This affects thousands of young families.