Seanad debates

Tuesday, 11 December 2018

Finance Bill 2018: Report and Final Stages

 

10:30 am

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

The sustainable development goals were adopted in 2015 by 193 UN members, including Ireland, and consist of 17 high-level goals and 169 targets. While not legally binding, both developed and developing countries are expected to take ownership and establish national frameworks for achieving the goals by 2030.

A senior officials group led by the Department of Communications, Climate Action and Environment has been set up to oversee Ireland's implementation of the goals. In July 2018, Ireland presented its first voluntary national review of progress to date under the sustainable development goals at the UN high-level political forum on sustainable development. Regarding goal 10, the review stated that Ireland performs marginally better than the EU average measured by relative median at-risk-of-poverty gap, Gini coefficient of equalised disposable income and income share of the bottom 40% of the population. From an income tax perspective, the changes introduced in the past five budgets have made incremental progress 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 process in future budgets as fiscal resources allow. It is important to examine the broader effects of budgetary measures over time, such as the contribution of budgetary policy to employment growth over recent years. In addition, it is necessary to consider other non-budgetary Government measures to support these lower incomes.

The Government has adopted the recommendation of the Low Pay Commission to provide for an increase in the national minimum wage from January 2019. This is the fourth consecutive year in which it has increased.

Budget 2019 has provided for increases in social protection payments, including an increase of €5 per week in all social welfare payments, to be introduced through the social welfare Bill. Therefore, 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.

Senators will be aware that a significant volume of work is already being undertaken by the Department of Finance and the Department of 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 on the sustainable development goals, I cannot accept the Senator's recommendation.

Comments

No comments

Log in or join to post a public comment.