Pádraic McCormack (Galway West, Fine Gael)
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Question 26: To ask the Minister for Finance when he will publish his assessment of options for a social levy. [24746/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As the Deputy will be aware, I announced in the Budget that, with a view to restoring balance in the income tax system, to simplify it, to make it fairer and more broadly based, I intended to introduce a new system of just two charges on income viz.

a new universal social contribution to replace employee PRSI, the Health Levy and the Income Levy. This will be paid by everyone at a low rate on a wide base as a collective contribution to public services.

Income Tax will apply on a progressive basis to those with higher incomes reflecting their capacity to make a greater contribution.

The possible parameters of such a system have been under active examination by my Department in consultation with the Department of Social Protection, the Revenue Commissioners and other Departments concerned. A steering group and a variety of working groups have been established to carry out the necessary research. The steering group is nearing competition of its work and I expect the steering group report shortly.

On receipt of this report, and having considered its contents, I will then decide on the possible publication of a discussion paper on the issue.