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Dáil Éireann Vol. 724 Friday, No. 4 10 December 2010 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Friday, 10 December 2010. Financial Emergency Measures in the Public Interest (No. 2) Bill 2010: Second Stage (resumed) …………………………… 753 Committee and Remaining Stages ……………………… 765 Handling of Criminal Matter in Longford: Statements ………………… 792 DÁIL ÉIREANN ———— Dé hAoine, 10 Nollaig 2010. Friday, 10 December 2010. ———— Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m. ———— Paidir. Prayer. ———— Financial Emergency Measures in the Public Interest (No. 2) Bill 2010: Second Stage (Resumed) The following motion was moved by the Minister for Finance, Deputy Brian Lenihan, on Wednesday, 09 December 2010: That the Bill be now read a Second Time. Debate resumed on amendment No. 2: To delete all words after “That” and substitute the following: “Dáil Éireann declines to give a Second Reading to the Financial Emergency Measures in the Public Interest (No. 2) Bill 2010 having regard to the proposal to cut the national minimum wage by €1to€7.65.”. — (Deputy Michael Noonan). Deputy Joe Costello: The purpose of this Bill is to cut public services, the pay rates of Government officeholders and to take €1 or 11.5% off the minimum wage. The Bill contains another batch of cuts following on the slash and burn Social Welfare Bill yesterday. This time it is public service pensioners and the minimum wage earners who are hit. A sweetener is thrown in, curtailing the earnings of the Taoiseach by 5% and the Tánaiste and Ministers by 4.5%. While those reductions follow on 20% and 15% reductions respectively last year, they certainly will not put the Taoiseach or his Cabinet on the breadline. The annual remuneration of the Taoiseach will still be a hefty €214,187 while the Tánaiste will still earn €197,486 and each Minister will earn €181,283. The Labour Party believes nobody in the State sector should have a salary of over €200,000. There should be a statutory maximum salary in the public service and €200,000 should be the absolute ceiling, with the Taoiseach leading by example. The Cabinet salaries should be reduced proportionately. The Minister for Finance stated in his budget address: The Government believes there should be a maximum salary rate of €250,000 in the public sector. Only a few officeholder posts have salaries above this level at present but there is a larger number in the State agencies. What is the Minister going to do about it? He proceeds, typically, to suggest that we will “enforce the objective of the maximum salary [€250,000] within a reasonable timeframe” but 753 Financial Emergency Measures in the 10 December 2010. Public Interest (No. 2) Bill 2010 [Deputy Joe Costello.] there is no reasonable timeframe for those on social welfare whose income is being reduced to less than €200 weekly. The blind the disabled, the widowed, the lone parent, the unemployed and the carer are not being provided the buffer of a “reasonable timeframe”. Deputy Michael D. Higgins: New Year’s Day. Deputy Joe Costello: Yesterday’s Social Welfare Bill made all the social welfare cuts oper- ational from the end of December 2010 or the beginning of January 2011. High earners are given time to acclimatise to “adjustments” while so called “social protection adjustments” are immediate and ongoing. It gets even worse for the less well off. The Minister for Finance put it chillingly in his budgetary speech: “Over the next four years, further reductions in social welfare spending are unavoidable if we are to reduce the budget deficit.” Deputy Brian Lenihan: It is what Deputy Costello will be doing. Deputy Joe Costello: The Fianna Fáil view of the financial crisis is frightening. The sins of the bankers will be visited on social welfare recipients. The less well off must pay for the bailout. The title of this Bill is the laughable Financial Emergency Measures in the Public Interest (No. 2) Bill. It is a bad political joke from the gombeen party of Ireland. How can it be in the public interest to reduce the minimum wage from €8.65 to €7.65 or by 11.5% and then to cut it further with the universal social charge, an additional tax that will result in a total slice off the minimum wage of at least 14%? Some 50,000 workers on the minimum wage will be hard hit by the provision of this Bill and this budget. The statutory minimum wage is a necessary bulwark against abject poverty and exploitation in the workplace. It should be a core principle in a civilised society. The 11.5 % cut in the minimum wage is not going to add one cent to the Exchequer while it will expose thousands of people to exploitation by unscrupulous employers and to poverty. Moreover, there is a mechanism through the Labour Court that enables an employer to plead inability to pay the national minimum wage. This mechanism has yet to be invoked by any employer. With their across-the-board cuts in social welfare benefits and allowances and now their cut in the minimum wage the Government has begun a new race to the bottom for the most vulnerable people in our society. Already nearly 120,000 workers are deemed to be living below the poverty line in Ireland. This assault on the minimum wage could open the floodgates and sharply increase the numbers of working poor. The budget is about political choices and politi- cal priorities. The Labour Party presented a budget of €4.5 billion revenue raising measures divided equally between taxation measures and expenditure cuts. The Labour Party identified new tax measures such as the 48% tax rate; the Government chose not to touch the tax rates. The Labour Party identified major savings in eliminating pension and property-based tax reliefs; the Government chose to nibble lightly at these reliefs, which are enjoyed by the rich and powerful and influential friends of Fianna Fáil. The Labour Party identified 7,000 tax exiles, who are virtually all millionaires, not paying a tax in this country and yet who enjoy all the benefits of being Irish citizens jetting in and out of the country as the fancy takes them. The Minister for Finance mentioned the desirability of taxing them in last year’s budget. It did not happen then and it will not happen now while this Government is in power. These are the political choices that Governments make. Fianna Fáil has too many friends in high places to go after the big earners. Instead, they have disproportionately reduced the incomes of the middle earners and the less well off. The recent announcement that bank execu- tives in AIB, a bank in public ownership, which received €3.5 billion in recapitalisation from the State, which will receive billions more and whose shares have plummeted from €23.95 to 754 Financial Emergency Measures in the 10 December 2010. Public Interest (No. 2) Bill 2010 just 50 cent, will receive €40 million in bonuses is outrageous. How these executives could be entitled to bonuses when the bank was being driven into the ground and incurring astronomical debts is beyond any sane person’s comprehension. There is a Christmas bonus for the execu- tives, but a cold shoulder for wholly innocent front line staff. These are the people who will experience the sharp edge of public anger. The response of the Minister for Finance is typical. He has announced a 90% tax on such bonuses for the future but he is not willing to tax the €40 million at issue now. Deputy Brian Lenihan: It is fully taxed. Deputy Joe Costello: Why will the Minister not table an amendment—— Deputy Brian Lenihan: It is fully taxed. Deputy Joe Costello: I ask the Minister to allow me to finish and he can respond then. Deputy Brian Lenihan: No, the Deputy cannot just come in and talk nonsense all the time. A Deputy: The Minister does. Deputy Joe Costello: The Minister has already said he will introduce a 90% tax on future bonuses so it is not fully taxed. Deputy Finian McGrath: What about the euro off the poor? Deputy Joe Costello: The Minister’s response is typical. It is like Saint Augustine, it will happen but not yet. It will happen in the future. An Ceann Comhairle: I warn Deputy Costello that disorder could break out if this persists. Deputy Joe Costello: The Minister has announced that there will be a 90% tax on such bonuses in the future. He cannot deny that fact. However, he is not willing to do it now with regard to the €40 million that will be paid out. I ask that the Minister table an amendment to the Bill, in keeping with its title of emergency measures in the public interest. Surely this is an emergency measure in the public interest. He should impose a tax of 90% on all bonuses, including the current bonuses. Everybody on this side of the House would support such an amendment unanimously. The bonuses are due to be paid out to the executives by 17 December so this is the only opportunity for Members of this House to take a stand on behalf of the Irish people and to say that we who were elected to represent the people will stand with the people and not tolerate this smash and grab. It is not too late for the Minister to do the right thing and I urge him to do just that. We will support him in every way and there is still time.
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