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Select Committee on Finance and General Affairs debate -
Tuesday, 9 May 1995

SECTION 10.

Question proposed: "That section 10 stand part of the Bill."

This section relates to the controversial Government decision taken some time ago to tax certain social welfare benefits, which has caused considerable grief. May I say at the outset that — as far as I am concerned — the principle of taxation on social welfare benefits was agreed by nearly all sociologists——

Not by the democratically elected representatives.

——various trades councils, the Irish Congress of Trade Unions and any other lobby group that comes to mind. This was on the principle that all income, from whatever source, should be treated as equal. Very unusual anomalies arose with regard to disability benefit because if a person worked from 6 April, became ill in September and did not work until the following April, he or she was in a better position than the person who worked the whole year. I find it extraordinary, notwithstanding some of the anomalies which have arisen, that some parties in the House decided this principle should be thrown out.

I know that this section is aimed at removing some of the anomalies but I believe that regardless of the source of income, all income is the same. People receiving the same amount of income in any year should be treated the same as far as the tax code provides.

May I make one comment, Chairman?

I cannot allow it because we are in breach of the orders of the House. By courtesy, I will allow a speaker from each of the Opposition parties.

I agree with Deputy McCreevy.

Can the Minister confirm that Democratic Left now agree with taxation of unemployment benefit?

Are you questioning Deputy McCreevy and Deputy McDowell?

Question put agreed to.
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