Ivana Bacik (Independent)

I move recommendation No. 1:

In page 7, between lines 26 and 27, to insert the following:

3.—Section 3 shall not come into operation save by order of the Minister which may only be made after the Minister has carried out an economic and social impact assessment of the introduction of the universal social charge, particularly in respect of those on medical cards or over the age of 70 who were previously exempted from the health and income levies, and has laid the assessment before Dáil Éireann.".

The import of the recommendation is clear to all. It concerns the universal social charge which I described earlier as being a universally detested charge. The universal detestation with which it is being met will be clear to anyone who has been listening to the radio or knocking on doors because in recent days people have become very concerned as the impact of the charge has hit them in their pockets. The charge is a tax by any other name, replacing the health and income levies but having a disproportionate effect on the lower paid.

In the recommendation we have sought a delaying mechanism by saying that the section providing for the universal social charge should not come into operation save by order of the Minister after an economic and social impact assessment has been carried out. I am conscious that the Minister has made changes to the universal social charge in recognition of the enormous public concern about its impact and has placed medical card holders at the lower rate of the charge. However, those changes do not go far enough to ensure the lower paid are not disproportionately hit. It is contradictory and inconsistent to have kicked the measures to curb property tax reliefs to touch under pressure from a lobby group until after an economic impact assessment while bringing this in with immediate effect. If anything should be deferred pending an economic impact analysis it should be the universal social charge.

The Labour Party has said that if elected we would seek to ease the impact of the universal social charge for those most adversely affected as well as ensuring a rebalancing of the tax system in order that high earners and investors would contribute their fair share in a progressive tax system. The recommendation is moderate. It simply requires that an economic and social impact analysis would be carried out in recognition of the burden the universal social charge represents, especially on the incomes of the lowest paid.