I propose to take Questions Nos. 10 and 12 together.
Firstly, a married man, on standard tax relief, with four children, earning the average industrial wage of £209.70 per week can expect to take home £158.25 after tax and PRSI; similarly, a married man in receipt of standard benefits with four children, on unemployment assistance would receive about £120.96 per week. As circumstances differ from case to case, any attempt to generalise with regard to other reliefs and benefits could serve only to mislead the House.
If the Deputy wishes to contact me with regard to specific cases then I shall be more than happy to itemise the relief and benefits available in each instance. The deduction mentioned would of course reduce both take home pay and the differential between the disposable income of the two persons mentioned by the Deputy.
As regards the question of wage costs the position is as follows:
(1) Where an employee is on the average industrial wage of £209.70 per week it would cost an employer approximately £2.54 extra for a single employee and £1.87 for a married employee to increase the nett wages by £1 a week, taking account of both marginal tax codes and employers PRSI.
(2) After this increase a single employee on the average industrial wage, without additional tax relief, could expect to take home approximately £141 per week while a married man on the same wage could expect to bring home about £159 per week. It should be borne in mind that these calculations do not take into account additional tax relief available for health cover, life insurance, mortgages and so on; with such relief the nett take-home pay would be significantly greater in each case.
In relation to the question of job creation generally the Government's overall strategy is to create the conditions for employment growth. The effects of this approach are clearly apparent; economic growth of 4 per cent is forecast for this year, inflation is at a very low level historically and is predicted to fall even further next year, manufacturing production has set new records and the live register is at its lowest November level since November 1984.
Over the past three years with job creation and economic recovery uppermost in mind, considerable strides have been made in the reform of the tax system. These strides were made despite the constraints imposed by the difficult budgetary situation inherited in 1987. These constraints still apply, albeit in reduced fashion: current budget deficit of £819 million; one of the highest debt-GNP ratios among developed economies. Nevertheless the Government are committed to this process of reform to ensure that the optimum conditions for continued employment and economic growth prevail.
