Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

If one goes back several years, since the real damage impacted upon the finances of the State, we have been doing that. Some 400,000 people out of 2 million people pay a zero rate of universal social charge. A total of 36 % of the workforce pays no income tax. These figures are rarely quoted. I absolutely agree that within those figures there are part-time workers for whom the system works very well. This is 400,000 people who pay nil in respect of the universal social charge. This is 36% who pay nil in respect of income tax because they are underneath the threshold. The reason they are underneath the threshold is because we have raised the thresholds. I absolutely support these measures.

The sustainable development goals were adopted in 2015 by 193 UN members, including Ireland and consist of 17 high-level goals and 196 targets. While not legally binding, developed and developing countries are expected to take ownership and establish national frameworks for achieving the goals by 2030. Senior officials have formed a group, led by the Department of Communications, Climate Action and Environment, that has been set up to oversee Ireland's implementation of these goals. A progress report, published by EUROSTAT in November notes that the EU as a whole made moderate progress in the goal to achieving sustained income growth of the bottom 40% of the population at a rate higher than the national income over the last five years. In an Irish context, and from the perspective of income tax changes introduced in the last four budgets, incremental progress has been made in reducing the income tax burden, thereby increasing net after-tax income with an emphasis on low and middle-income earners.

It is the Government's intention to continue this progress in future budgets as fiscal resources allow. It is also important to look at the broader effects of budgetary measures over time such as the contribution of budgetary policy to employment growth over the past number of years. It is necessary to consider other non-budgetary Government measures to support those on lower incomes. For example, the Government has adopted the recommendation of the Low Pay Commission to provide for an increase in the national minimum wage from January. This is the third consecutive year in which this has increased.

I also note that budget 2018 has provided for an increase in social protection payments, including a €5 per week increase in all social welfare payments to be introduced through the Social Welfare Bill. An analysis of the Finance Act alone would not be representative of the range of measures undertaken by the Government to support those who are on lower incomes.

The Senator will also be aware, on foot of the discussions on a previous recommendation in respect of equality assessment, that a significant volume of work is already being undertaken by the Departments of Finance, Public Expenditure and Reform and Employment Affairs and Social Protection to assess the impact of the budget, tax and expenditure measures on income equality.

Taking these factors into account, and in view of the oversight role held by the Department of Communications, Climate Action and Environment, I do not accept the Senator's recommendation.