Maureen O'Sullivan (Dublin Central, Independent)
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156. To ask the Minister for Finance the reason his Department is supporting the one-parent tax credit cut that undermines the equal rights of children, discriminates against children living in separated units, enforces less favourable financial, social and emotional supports on these children than on all other children in our society; and if he will make a statement on the matter. [48895/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the One-Parent Family Tax Credit (OPFTC) is being replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing OPFTC and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. The new credit will be targeted such that it is available only to the primary carer of the child. A maximum of one credit will be available per single carer/claimant, regardless of whether he or she cares for more than one child. This is the same condition that applies to the current OPFTC. Given the difficult fiscal environment it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them. A system that allows multiple claims in respect of the same child, as can happen with the OPFTC, is unsustainable.

The Commission on Taxation acknowledged that the One-Parent Family Tax Credit plays a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the principal carer only. The restructuring of the credit will achieve such an outcome.

I should point out that, there is no specific tax credit for children in the Irish tax code; rather credits are applicable in respect of children in different circumstances and therefore the decision to replace the One-Parent Family tax Credit with the new Single Person Child Carer Tax Credit does not undermine the equal rights of children or discriminate against children living in separate units. If anything, the parents or guardians of such children will continue to be treated more favourably than others due to the availability of the new credit.

Notwithstanding the above, I have listened carefully to the views expressed by my colleagues and many Deputies in this matter and I will be bringing forward an amendment at Committee Stage, which will allow the credit to be used by a non-primary carer in situations, for example, where the primary carer has no tax liability.