Michael D'Arcy (Fine Gael) | Oireachtas source

I appreciate that and believe he is doing the right thing.

We must look at the headline figures. Our receipts in 2015 from taxes were €44.6 billion, while receipts for 2016 are expected to be over €47 billion, an increase of almost €3 billion. VAT is up by €750 million, corporation tax is up by €500 million, capital gains tax by €250 million and income tax by €1 billion. These figures would suggest that the growth that has started will continue, which is essential because if we do not grow our economy, we are at nothing.

I heard my colleague from the banking inquiry, Deputy Pearse Doherty, say that the State is not redistributing wealth. However, according to figures released today, the income tax take will be €19.15 billion while the welfare budget will be €19.6 billion. Every penny that comes in through income tax is going back out in a direct payment. I would ask that people look at the figures and understand them because some are coming out with uninformed, mean-spirited and silly comments.

As illustrated on page 100 of the expenditure booklet, of the €19.6 billion referred to, €7 billion is spent on old age pension payments - the biggest payment from the State. A further €2.6 billion is spent on child benefit. That means that we are spending €9.6 billion, or almost half of the Department of Social Protection budget on payments for old people and children. I believe that is appropriate. The next largest payment is to carers, who receive €3.5 billion. These people do an outstanding job on behalf of this state. A sum of €5 billion is spent on working-age employment and income supports, that is, on people who are unemployed. These figures need to be broadcast because there is such a lack of knowledge of this issue.

I was trying to find figures for the family income supplement payment and perhaps the Minister of State can help me out in that regard. I have consistently said that work must pay. Indeed, I have been saying that for years and am glad that others are now agreeing with me on that. We had a report from Professor Richard Tol from the ESRI, which was very quickly retracted, which indicated that families on welfare are better off than those on low pay. Finally the Government is trying to do something about that. The politics that I espouse is about allowing people to earn more and is not about impoverishing those on welfare and reducing rates of pay. That said, one must ask how one does that. Does one increase the minimum wage? Employers may not like it because 50 cent an hour for a 40-hour week will cost €20 gross per employee. That will, of course, be allowable against income tax. We are allowing people to earn more and to be taxed less. I welcome the changes to the universal social charge, USC, particularly the removal of tens of thousands more people from the USC net. Our colleagues on the other side of the House introduced the USC as an emergency measure. It yields €4 billion to the State so when that amount is reduced, the money must come from somewhere else.

I support the reduction in the pupil teacher ratio at primary level. However, there is no mention of DEIS but perhaps that will come later. DEIS schools were so designated at the beginning of this century - in 2002 or 2003. It is an outrage that this has not been reviewed because there are some schools which have DEIS status but which no longer require it. Areas have evolved, children have grown and moved on. At the same time, there are schools in other areas which badly need DEIS status but they are excluded.