Proinsias De Rossa
Ceist:22 Proinsias De Rossa asked the Taoiseach when the 1998 annual meeting of all parties to Partnership 2000 will be held; the likely agenda for this meeting; and if he will make a statement on the matter. [13506/98]
Ceisteanna — Questions. - Partnership 2000.
In accordance with paragraph 11.7 of Partnership 2000, quarterly meetings, involving the Government and the four pillars, are held to review and monitor the operation of the partnership agreement. The next such meeting which I intend to chair will take place on 28 July. Items on the agenda for the meeting include discussion on the section of the partnership dealing with social inclusion and equality and the modernisation of the public service. A progress report on the ongoing implementation of Partnership 2000 will be finalised for the meeting and I have arranged that it will be laid before the House.
Does the Taoiseach intend to ignore those ivory tower economists who advise the Government not to proceed with the tax cuts proposed and agreed under Partnership 2000?
The Government is committed to Partnership 2000 and to trying to lighten the burden of taxation, especially on the less well off. We will continue with that policy.
Does the Taoiseach agree the Government should follow the policy of the previous Rainbow Government, which was to widen tax bands and raise tax free allowances to help those on low pay, rather than pursue the mistaken policy in the budget of reducing capital gains tax and top rates of tax, which helped the better off and not those on the margin?
We are pursuing policies which have been pursued by Governments in which my party has been involved for the past 11 to 12 years. Our policy is to reduce all taxes to try to make the economy stronger, to create more jobs and to give people on lower incomes the opportunity to pay lower rates of tax or to get out of the tax net. We have moved away from the penal tax rates of a decade ago and will continue to deal with tax in this way.
Does the Taoiseach agree that the choice made in the budget to reduce tax rates rather than increase bands and allowances was——
We should not discuss the budget at this time.
My question is concerned with Partnership 2000.
We cannot have another budget debate on Question Time.
Does the Taoiseach agree that the choices made by the Government in the budget were contrary to the tax agreements in Partnership 2000 in that they benefited the better off rather than the less well off by reducing rates rather than increasing tax free allowances and widening bands?
I do not want to go beyond the ruling of the Chair and discuss the budget. However, those on low pay did better, those who had no jobs are working and people want to see the rates of tax reduced as well as having all the other issues addressed. Over the past ten years we have been getting away from penal rates of taxation. I do not consider the rates of tax to be low, nor do I consider our bands are too wide. I have advocated for years that we must get the vast majority of workers paying tax at the standard rate with as high a threshold for tax allowances as can be afforded. That is what we are working at and we will continue to do so.
Does the Taoiseach agree that the biggest beneficiaries of the budget were the property speculators, some of whom were up to £1 million better off the day after the budget than they were the day before?
That is out of order on Question Time.
The fat cats have got enough.