Vol. 488 No. 4
10 Mr. Quinn asked the Taoiseach the Government Department which has been given the responsibility to produce a Green Paper on the issue of basic income within two years as outlined in An Action Programme for the Millennium; and if he will make a statement on the matter. [6351/98]
As I indicated in my reply to Deputy Sargent on 28 January, a Working Group on Basic Income, operates under the aegis of my Department. The group is finalising tendering procedures for appointing economic consultants to carry out a study on the viability and suitability of introducing a system of basic income in Ireland. This independent study will assist the working group in producing as comprehensive and robust a consideration of the subject as possible. The working group operates under Partnership 2000 and will be reporting in due course through the relevant mechanisms under this agreement.
It is too early at this stage to decide the arrangements in relation to the Green Paper on basic income, which has been committed to in An Action Programme for the Millennium. When it has considered the group's report, the Government will make arrangements for the preparation of the Green Paper, including allocation of ministerial responsibility.
Is the Taoiseach aware that there are two possible systems of basic income which can be put in place, one which will have the effect of reducing incomes and the other which will have the opposite effect? Will he ensure that the system to be put in place will not have a negative effect on incomes?
Does the Taoiseach agree there are inconsistencies between an approach which involves reducing tax rates and one which involves the introduction of a basic income? Does he also agree that, if we wish to introduce a basic income, the best course to adopt is to take a gradual approach and ensure that all actions taken are consistent with our ultimate destination? In that case, would the Government not be obliged to abandon the approach of reducing tax rates and opt for an approach of increasing allowances and widening bands?
The Government is committed to the goal of maintaining, enhancing and expanding our competitive economy while ensuring that those not riding the crest of the current economic wave are not left floundering. We are operating in a dynamic and constantly changing competitive environment to achieve our goals of growth, competitiveness and dealing with social exclusion. We must evaluate the options before charting the best course to take.
I am sure the Deputies agree that examining the viability and suitability of a system of basic income is a job worth doing.
What does that mean?
We have employed consultants to engage in that process and we are not going to ignore it. Deputy Bruton would like to believe that having people paying tax at a rate 50 per cent is a suitable way to proceed. We do not hold that view and neither do people in general. The public wants to see the introduction of lower tax rates and increases in bands and allowances. However, that can only be done in an ordered way. People who are not working and those on the margins want to see an examination of a basic income system and the Government is committed to that.
