asked the Minister for Finance when the £9.60 tax credit which was promised in the Fine Gael election manifesto will be paid to Irish housewives.
15.
Ceisteanna—Questions. Oral Answers. - Payment of Tax Credit.
14.
asked the Minister for Finance when the £9.60 per week in the Government`s programme will be paid to wives working in the family home.
16.
asked the Minister for Finance if the £9.60 per week in the Government`s programme will be paid to widows working in the family home.
17.
asked the Minister for Finance if the £9.60 per week in the Government`s programme will be paid to farmers` wives whose husbands are (a) liable and (b) not liable for income tax.
18.
asked the Minister for Finance if the £9.60 per week in the Government`s programme will be paid to wives of the self-employed whose husbands are (a) liable and (b) not liable for income tax.
19.
asked the Minister for Finance if the £9.60 per week in the Government`s programme will be paid to deserted wives and unmarried mothers.
20.
asked the Minister for Finance if the £9.60 per week in the Government`s programme will be paid to wives who act as home-helps under schemes operated by health boards.
With the permission of the Ceann Comhairle, I propose to take questions Nos. 14 to 20, inclusive, together.
The replacement of the existing income tax personal allowances by income tax credits, including the direct payment to the spouse working in the family home, is an integral part of the Programme for Government. It will be implemented as part of the overall restructuring of the tax system envisaged in that programme. The precise details and scope of the proposed scheme of credits have yet to be finalised by the Government and I will be announcing these details in due course. The scheme will come into operation with effect from the beginning of the next income tax year.
On the previous group of questions I rose to ask a supplementary. The Chair looked in my direction and saw that three people were offering. You offered two members of the Fianna Fail front bench the opportunity to ask supplementary questions. I was the third person offering. Do I have an equal right, in your opinion?
The Chair decides whom to call and you were overlooked in error. I cannot now go back to that question.
Would the Minister not agree that the Fine Gael manifesto gave a very definite impression that women working in the home would receive £9.60? Does he not agree that widows and deserted wives work in the home and will he tell us why they are being discriminated against under this scheme?
The method of application of this payment has yet to be worked out in detail. The categories to which the Deputy has referred will be borne in mind when these details are being worked out. This scheme is part of the largest ever overhaul of the income tax system. It is a major change in the method of operation. It is, therefore, understandable that the precise details must be worked out with great care. If the Deputy wishes to make representations or submissions in respect of the group whom she feels are not adequately covered by the proposals as published to date, such representations will be very carefully considered.
A Cheann Comhairle——
I am sorry, Deputy Woods. Deputy Fennell indicated first.
In the event of Irish husbands staying at home and wives going out to work, will the husbands qualify for the allowance?
It would be my hope — and probably there would be a legal obligation on the Government — to ensure that people in the same position be treated in the same way regardless of sex.
Deputy John Callanan indicated before Deputy Woods.
In discussing the budget I referred to the effect of the petrol increase on small farmers bringing milk to the creamery and the Minister replied that they would benefit from the payment of £9.60 to the wife. That is not so.
A question, Deputy.
Does the Minister intend to change the scheme to include the small farmer's wife?
Obviously the wife of a small farmer who pays income tax will be included. The position of other categories who do not come within that definition remains to be considered in the context of the examination of these very detailed proposals which is now in train.
The answer I gave to Deputy Lemass applies to Deputy Callanan. If he wishes to make submissions about the method of application of this tax programme contained in the joint programme of the Government such representations will be treated as appropriate.
(Interruptions.)
Will the Minister agree that what he is saying is that housewives will pay now through prices and taxes and can hope to get the £9.60 from their husbands later and that meanwhile the Government will smile all the way to the bank with the £314 million which has been taken from the PAYE sector?
(Interruptions.)
I have asked several questions and I would ask the House to allow me to ask some supplementaries.
(Interruptions.)
On Question No. 16, will the Minister agree that the increase of 80p per week given to widows to offset the 6 per cent CPI increase and the school books increase as well as other increases, is insulting to them? They have to bear the increased ESB and other charges. Is the Minister now saying that they must wait until next year some time and hope that having paid all this money they may get something else. The same applies to question No. 17. The PAYE worker there at £6,000 per annum is now paying out £12 per week and can now only hope to lose a tax credit later.
He is still making a speech.
(Interruptions.)
There are seven questions down and supplementaries are allowed on them.
(Interruptions.)
The Deputies opposite do not like to hear the facts but would they not also agree that the Minister is asking deserted wives and unmarried mothers to settle for a pittance of 80p per week while their costs are pushed up by the Government?
I am glad that Deputy Woods had an opportunity to commence his budget speech during Question Time.
(Interruptions.)
I am calling Deputy Gerard Brady.
In view of the inflationary nature of this budget and the fact that this £9.60, when and if it is paid, will be worth considerably less, will the Minister give an assurance that, following the postponement of this payment over a projected nine or ten months, he will index-link the payment to make it comparable with the promise of £9.60?
As I am sure the House is aware, it was always envisaged that this allowance would be introduced in the 1982-83 tax year and not before.
(Interruptions.)
Deputies
Certainly not.
(Interruptions.)
I am calling Deputy Eileen Lemass.
Will the Minister give us an idea how much it will cost the State to implement this policy of robbing Peter to pay Paul and how many extra staff will be needed to administer it?
Do I take it from Deputy Lemass`s reference to this as robbing Peter to pay Paul, that she is opposed to it?
(Interruptions.)
Mr. R. Burke
Answer the question.
(Interruptions.)
The administrative costs involved in this will not be a significant factor and will not deter the Government from implementing their proposals whether or not they are supported by Deputy Lemass and her party.
How much will it cost and how many will be employed in it? I did not get an answer to my question.
I am not responsible for the Minister's answer. I am calling Deputy Lyons.
The Minister just said that it was indicated to the general public that this £9.60 would apply from some time in 1982. In the Cork region we did not see any evidence of these dates being included. Do the Government intend if and when this is introduced, that it be made retrospective to last May when it was first announced in Cork?
On any occasion when I as Fine Gael spokesman for Finance was asked when this would be brought into operation I made it quite clear that it would be introduced not some time in 1982 but in April 1982, which is the beginning of the 1982-83 tax year. I reiterated that position in my budget statement.
(Interruptions.)
A final supplementary from Deputy Jim Kemmy.
A more pertinent question is, does the Minister plan to extend the £9.60 payment to the wives of unemployed and low paid workers?
That is one of the issues being considered in respect of the detailed application of this scheme. The Deputy will recall that in the joint programme ——
(Interruptions.)
——reference was made to the fact that people on incomes of below £4,000 a year would not, under the scheme as originally envisaged obtain this benefit. Methods are now being considered as to how such a benefit can be extended to these cases. In respect of people who are unemployed there is a proposal that the dependency allowances which are allowances in respect of the wife and children should be paid direct to the wife.
Question time has now ended. As we are adjourning today for the summer recess written replies will be given to the remaining Questions. If any Deputy wishes to have his questions left on the Order Paper for oral answer after the recess he should inform the general office by 5 p.m. today.
How is it that the Minister could give £5.50 to the mountain ewe scheme last night but could not manage the administration of the £9.60 for the housewife?
(Interruptions.)
Item No. ——
A Cheann Comhairle ——
I wish to raise the subject matter of Question No. 63 on the Adjournment tonight.
I will communicate with the Deputy.
I had a question disallowed by the Chair and I do not agree that the question was argumentative as the Chair said this morning.
The Deputy has no right to raise it now; he is at liberty to come up and see me in my office and I will explain it.
I wish to see you here.
The Deputy cannot raise the matter here once it has been disallowed.
The Chair refused me twice before.
The Deputy is welcome to come up to my office to discuss it.
I wish to have my name and reputation cleared in this House.
It is not allowed.
(Interruptions.)
The question was disallowed and the Deputy is being disorderly in insisting.
It is you who is being disorderly, you are argumentative, not I.
I cannot allow Deputy Loughnane to discuss it further.
(Interruptions.)
I wish to raise the subject matter of Question No. 51 on the Order Paper on the Adjournment tonight.
I will communicate with the Deputy.