Dáil Éireann debate -
Tuesday, 5 Mar 1991

Vol. 405 No. 9

Written Answers. - NESC Report.

Dick Spring

Question:

53 Mr. Spring asked the Minister for Finance if, in respect of the figures and tables supplied by his Department to NESC which formed the basis of a table entitled The Poverty Trap: Man, Wife, Four Children, 1989/1990, £ per annum, on page 235 of the NESC report A Strategy for the Nineties, he will give details of comparable data in tabular form for the year 1990-1991 and estimated for the year 1991-1992; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds):

Following, in tabular form, are the data for 1990-91 and 1991-92 requested by the Deputy. They update Table A7.9 on page 235 of the NESC Report entitled A Strategy for the Nine ties.

The updated table for 1991-92 shows that, compared to 1989-90, the net disposable income position at all of the gross pay ranges examined has increased, with particularly significant increases at the lower pay levels. The principal reasons for the increases in net income relative to gross pay have been tax reductions and FIS improvements.

The original table showed that for 1989-90 at gross pay levels between £6,000 and £9,000, net income declined as gross pay increased. The updated table for 1991-92 shows that, while this effect still occurs between £8,000 and £10,000, the range of incomes over which it occurs has been narrowed and has also been moved away from the low pay levels at which it had operated previously.

As regards the impact in practice, the Deputy should note, firstly, that the number of persons involved is small and, secondly, that administrative factors can operate to mitigate the effect. An example of the latter is the fact that although a person's gross income may increase during the course of a year, his FIS entitlement is reviewed only annually.

The Poverty Trap: Man, Wife, Four Children, 1990-91, £ Per Annum.

					Plus		Less
Gross Pay	Tax	PRSI	Levies	Net Pay	FIS	Medi-Card Value	Net Income	LA Rent	Travel To Work Costs	Net Disposable Income
£	£	£	£	£	£	£	£	£	£	£
3,000	—	—	—	3,000	2,704	450	6,154	103	550	5,501
4,000	—	220	—	3,780	2,704	450	6,934	155	550	6,229
5,000	—	275	—	4,725	2,704	450	7,879	218	550	7,111
6,000	—	330	—	5,670	2,421	450	8,541	681	550	7,310
7,000	—	385	—	6,615	1,821	450	8,886	910	550	7,426
8,000	159	440	—	7,401	1,221	450	9,072	1,120	550	7,402
9,000	689	495	202	7,614	621	—	8,235	1,156	550	6,529
10,000	1,219	550	225	8,006	260	—	8,266	1,221	550	6,495
11,000	1,744	605	247	8,404	—	—	8,404	1,288	550	6,566
12,000	2,044	660	270	9,026	—	—	9,026	1,456	550	7,020
13,000	2,344	715	292	9,649	—	—	9,649	1,555	550	7,544
14,000	2,644	770	315	10,271	—	—	10,271	1,659	550	8,062
15,000	2,944	825	337	10,894	—	—	10,894	1,758	550	8,586

The Poverty Trap: Man, Wife, Four Children, 1991-92, £ Per Annum.

					Plus		Less
Gross Pay	Tax	PRSI	Levies	Net Pay	FIS	Medi-Card Value	Net Income	LA Rent	Travel To Work Costs	Net Disposable Income
£	£	£	£	£	£	£	£	£	£	£
3,000	—	—	—	3,000	4,440	463	7,903	123	570	7,210
4,000	—	220	—	3,780	3,840	463	8,083	175	570	7,338
5,000	—	275	—	4,725	3,240	463	8,428	238	570	7,620
6,000	—	330	—	5,670	2,640	463	8,773	681	570	7,522
7,000	—	385	—	6,615	2,040	463	9,118	910	570	7,638
8,000	—	440	—	7,560	1,440	463	9,463	1,120	570	7,773
9,000	312	495	202	7,990	840	—	8,830	1,156	570	7,104
10,000	832	550	225	8,393	260	—	8,653	1,221	570	6,862
11,000	1,352	605	247	8,795	—	—	8,795	1,288	570	6,937
12,000	1,872	660	270	9,198	—	—	9,198	1,456	570	7,172
13,000	2,237	715	292	9,755	—	—	9,755	1,555	570	7,630
14,000	2,527	770	315	10,387	—	—	10,387	1,659	570	8,158
15,000	2,824	825	337	11,014	—	—	11,014	1,758	570	8,686