Dáil Éireann Debate, Tuesday - 29 September 2015
289. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to be in a position to acknowledge and reward the Irish people for the sacrifices they have made since 2008, arising from the imposition of necessary financial constraints; and if he will make a statement on the matter. [33367/15]
View answerFirstly, I would point out that I and the rest of my Government colleagues have always acknowledged the sacrifices and efforts made by the Irish people since 2008 in addressing the crisis in the public finances. As the Deputy will be aware, the overarching priority for this Government in recent years has been to return stability to the public finances, while also ensuring that the economic recovery is supported and the most vulnerable in society are protected. I would point out that significant progress has been made in this regard, with Ireland due to correct the Excessive Deficit Procedure this year.
It is also worth pointing out that this Government has honoured its Programme for Government commitment to maintain the current rates of income tax together with bands and credits. This commitment was delivered in Budgets 2012, 2013 and 2014, which was critical in ensuring that income tax did not act as an excessive impediment to the recovery.
In addition, as the Deputy will be aware, the Government has been very clear in relation to its tax policy intentions. The Statement of Priorities issued by Government in July 2014, included a commitment for an income tax reform plan to be delivered over a number of budgets, to reduce the marginal tax rate on low and middle-income earners, in a manner that maintains the highly progressive nature of the Irish tax system. The first stage of the plan was given effect in Budget 2015, when a suite of Income Tax and Universal Social Charge (USC) measures were introduced. These changes to the income tax system ensures that all those who paid income tax or USC in 2014 are seeing a reduction in their tax bill for 2015. This marked the end of the consolidation period.
Finally, as I have stated many times in the house, it is intended that the fiscal space available in Budget 2016 will facilitate the continuation of this plan.
