Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I take the Senator's clarification on what she meant. She meant the Government here in the Oireachtas tabling the recommendation. I interpreted her as suggesting the Government could unilaterally make a change by statutory instrument, through a Minister in his office. I accept she meant the Government could put it through the House because it has the numbers to do so. I take the point. I interpreted it one way and the Senator is clarifying that is not what she meant. I accept that.

It is important to recognise that the PAYE credit is €1,650 per annum. That is the maximum. Nobody has the entitlement to get €1,650.It depends on whether one has the taxable income to attract the credit. It is like social protection payments. When we discuss the headline figure for jobseeker's allowance, that is the maximum rate, but not everyone can get the maximum. Similarly, €1,650 is the maximum PAYE credit above which one cannot claim. There is no guarantee that one has an entitlement to claim all of it either. It depends on one's income.

I want people to understand another point. I want to help the Senators, although they might not like me putting it this way. I urge them not to oppose section 3. Taxation is complicated and we have Finance Bills of this nature every year. We can see how various issues are handled year by year. A social welfare payment does not fall under the normal earned income Schedule because it is not earned through employment. Rather, it falls under a different Schedule. Without section 3, the PUP would not have a social welfare payment's benefit of attracting the PAYE and other tax credits. Section 3 provides that benefit.

I urge Senators to take my comments as being genuine. If they vote against section 3, they are voting to prevent tax credits being used to offset the PUP. If they were to win the vote, the PUP would be 100% taxable with no PAYE or other tax credits applicable. We are proposing the section at this point because the Financial Bill is so technical. It will ensure that the maximum credits can be set against the PUP. To vote otherwise would be to prevent that and tax the PUP. I know that is not Senators' intention, but it is what would happen if section 3 was not included. We have ventilated this matter a great deal. The section is designed to help people who unfortunately had to go on the PUP.