asked the Minister for Health whether he is aware that hospital nurses in the county hospital, Portlaoise, have recently been assessed for income-tax purposes on the cash value of their board, lodging, uniform and other emoluments which are deducted from their salary by the county hospital and that this unexpected liability for tax has substantially reduced their yearly income; and, if so, whether he will, in conjunction with the county council, take steps to restore to them by an increase in salary the tax they are compelled to pay.
Ceisteanna—Questions. Oral Answers. - Income-tax on Nurses' Allowances.
Mr. O'Higgins
I have no information in regard to income-tax assessments on nurses in the county hospital, Portlaoise.
When the revised inclusive salaries for nursing staffs in the provincial district mental hospitals and, later, nurses in public assistance and health authority hospitals, were being negotiated with the appropriate staff organisations, these organisations were fully aware that the staffs concerned would in future be assessed for income-tax on their gross cash salaries in the same way as other members of the community and consequently I cannot accept the suggestion that this increased liability for income-tax was "unexpected" or that the ratepayers should now recoup to the staffs concerned any increased tax for which they are now liable when the revised scales already took full account of this increased liability.
Mr. O'Higgins
Is it not a fact that, prior to the agreement to which the Minister referred, these nurses were paid a basic salary and, in addition, got free board, lodging, uniform and other emoluments? As a result of the agreement, the emoluments were given a cash value, but this cash value was not paid to the nurses, their basic salaries being notionally increased on the basis of the gross salary then fixed in respect of each of them. They are now charged income-tax on money they never can receive and surely it is incorrect to say that that liability was expected, when in fact the result of it is that their yearly salary has been substantially reduced by the amount of the tax?
Before the agreement was made, many of the local authority officers and employees who were living in institutions were paid a certain amount by way of cash and had free quarters and free rations. Under the agreement they got a salary and deductions are made for quarters, uniform and so on. Under the new agreement, they are liable to income-tax, but, in my negotiation with the officers of the unions concerned, it was always put forward in all our calculations that they would have to pay so much income-tax under the new arrangement and they were well aware of that arrangement.
Mr. O'Higgins
I will put a particular case to the Minister. A particular nurse in the county hospital was paid, say, £150 a year prior to the agreement and got uniform, lodging and other emoluments. As a result of the agreement, her lodgings and uniform are valued at £150 and her gross income is now taken to be £300, so that she is liable to tax. Surely she is paid less than the £150 she was getting in cash previously and surely that is a liability she did not expect and which none of them expected and a matter that should be investigated by the Minister?
It was an agreed change.
Mr. O'Higgins
It was not agreed by the nurses.