Tommy Broughan (Dublin North East, Independent)
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234. To ask the Minister for Finance his plans to address the income inequalities here, as outlined in the report of the Think-tank for Action on Social Change, launched on 16 February 2015. [7949/15]

Michael Noonan (Limerick City, Fine Gael)
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I note the report by the Think-Tank for Social Change (TASC) and their views on inequality in Ireland. 

While inequality is an important issue, not just for Ireland but globally, the Deputy should be aware that the TASC report identifies high levels of inequality in respect of market incomes. When inequality in Ireland is looked at in terms of disposable income, in other words what people have in their pockets, Ireland is in very much line with the EU 28 average. This is recognised by TASC in their report. This reflects, inter alia, the effectiveness of the Irish tax and social welfare system in reducing inequality of market incomes. This is evidenced by the fact that the tax and social welfare system in Ireland reduces the Gini-coefficient (which is a measure of income inequality) by more than any other country in the OECD.

While our tax and social welfare system already does much to reduce market income inequality a number of Government policies should help to reduce income inequality over the coming years. In the most recent Budget, the Government removed 80,000 people from liability to the Universal Social Charge (USC). 

Lowering the tax burden on those lower down the income distribution not only has the effect of helping to further reduce disposable income inequality it also serves to make work pay, rewarding the unemployed who take up employment. It is well recognised that participation in the labour market is one of the most effective ways to reduce income inequality, especially market income inequality. In keeping with this, the Government has made a commitment to the unemployed through further education and training programmes such as Momentum and Springboard. These provide the skills necessary for those currently unemployed to benefit from job creation.

Beyond these polices the Government has established the Low Pay Commission which will advise the Government annually on the National Minimum Wage earned by those at the bottom of the wage distribution. 

I am confident that the continued pursuit of these Government policies over the coming years will help to promote fairness and combat income inequality.