Terence Flanagan (Dublin North East, Fine Gael)
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To ask the Minister for Finance her views on a query regarding the universal social charge; and if he will make a statement on the matter. [38980/12]

Michael Noonan (Limerick City, Fine Gael)
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The position is that the Government has fulfilled its commitment in the Programme for Government to carry out a review of the Universal Social Charge (USC). The Terms of Reference of the Review were broad and wide-ranging and included the following areas:

- Low paid income earners;

- Persons over 65;

- Medical Card Holders;

- Widows/Widowers;

- Self-employed;

- Public Service Pensioners;

- Employer contributions to PRSAs; and

- Any other issues (including any operational issues that have arisen in the administration of the charge).

The Review of the USC was published on my Department’s website on 23 January 2011. It can be obtained at www.finance.gov.ie.

As a result of the review, I increased the annual exemption threshold from €4,004 to €10,036 per annum with effect from 1 January 2012. It should be noted that the cost of proving this relief was offset by switching the collection of the USC from a week 1 basis to a cumulative basis from 1 January 2012. To provide further exemptions along the lines sought could not be justified given the current budgetary position.