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Dáil
‹ Ceisteanna—Questions. Oral Answers. - National Pay Agreement.

Tax concessions and election disclosure

Summary

Kelly asks whether the Government made clear before the election that tax concessions could change if pay-agreement guidelines were not respected. The Minister says policy assumed a pay rise of around 5%, that larger increases could be accepted without tax adjustment, and that he does not believe voters were misled.

I have a couple of supplementaries.

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

I have allowed four on this question. I will allow Deputy Kelly one question.

Comment on this

I have two.

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Joseph Brennan An Ceann Comhairle Fianna Fáil

I will allow one from the Labour Benches and that will conclude.

Comment on this

In relation to the Minister's main reply when he spoke about the appeals for wage restraint and the crucial relationship between wage restraint and economic development, which are commonplace under all Governments, he did say that policies or tax concessions could not remain unchanged.

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Joseph Brennan An Ceann Comhairle Fianna Fáil

This is a speech, Deputy.

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I am trying to cast in one question what would otherwise take three or four, but the Chair is limiting me to one. The Minister said that these tax concession policies could not remain unchanged unless the guidelines of the pay agreement were respected. I ask the Minister whether that condition was made plain to the people by his party before the election?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

Surely that is not a relevant question.

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Surely you will allow the Minister to answer. Was it or was it not made plain?

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Martin O'Donoghue Professor O'Donoghue Fianna Fáil

Is the Deputy asking me to go back and re-fight the election campaign?

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Joseph Brennan An Ceann Comhairle Fianna Fáil

Deputy O'Leary.

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I ask the Minister to say yes or no.

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Martin O'Donoghue Professor O'Donoghue Fianna Fáil

So far as I know we said that our policies were formulated on the basis of a pay rise in the region of 5 per cent.

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Peter Barry Mr. P. Barry Fine Gael

That does not answer the Deputy.

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Martin O'Donoghue Professor O'Donoghue Fianna Fáil

I will go further and point out that we are saying that we will accept a greater increase in pay rates without adjustment of taxation. It is as obvious as night follows day that no Government could allow their policies to remain unchanged if there were any substantial development in the economy, be it from pay rises, from external price rises or from any action.

Comment on this

We know it is obvious. It was not obvious when the Minister was canvassing for votes.

Comment on this
Martin O'Donoghue Professor O'Donoghue Fianna Fáil

I am not aware of anybody being misled or misinformed as to the nature——

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