asked the Minister for Finance the saving to the Exchequer as a result of the Government's plan to abolish the £195 tax-free allowance in respect of each child in the family.

The abolition of the income tax child allowance would result in a saving to the Exchequer of the order of £50 million on the basis of the income tax rates and allowances in force for the current year. This saving will be offset against the cost of the scheme to augment the child benefit under the social welfare arrangements.

Will the Minister confirm that it is the intention to abolish the £195 tax-free allowance in respect of each child? The first part of the answer says it would result in a saving of £50 million and in the second part the Minister seems to indicate that it will be abolished. Is it also the intention to abolish the allowance in respect of all children including those who are over 16 years of age and still receiving education?

It is the Government's intention to implement the joint programme and that programme states that child tax allowances will be replaced by an augmented child benefit payment to mothers of dependent children of £3 per week and £4 for the sixth and later child. As the Deputy is aware, there are different rates of tax allowance. There is £195 general allowance, £500 allowance in respect of incapacitated children regardless of age and £195 in respect of each child over the age of 18 years. This matter is being considered by the Government in replacing the scheme. It is also a matter for the Minister for Health and Social Welfare who will be introducing the replacement scheme.

Is the Minister aware that under the planned change all families except those paying no tax will be at a loss? I appreciate that those who pay no tax will benefit marginally. The overall size of the loss can be seen in the £50 million that will be clawed back by the Minister.

My reply stated that the £50 million saving will be offset against the cost of the scheme to augment the child benefit under the social welfare arrangements. This is a major redistributive beneficial transfer in terms of family income support and is one which Members will generally support. The precise arrangements will be unfolded by the Minister for Health and Minister for Social Welfare and the matter is currently being considered by the Government in preparation for the budget.

Is the Minister aware that even those on 25 per cent rate would at this time, without any increase in the children's allowance which would be due, be better off with the present system against the proposed augmented child benefit?

We cannot have a debate on this matter. The question has been answered.

It would appear the Minister has not done the figures entirely and has not acted correctly as far as children and families are concerned.

I assure the Deputy that the figures have been done and that the general beneficial transfer, which most Deputies will support, will be a radical change when implemented. It will be in the next budget without question.