On 23 February 2011, the Tánaiste stated "Labour will not cut child benefit because", as Labour's policy document noted, "it is the State's only recognition that Ireland remains a very expensive place to raise a child. To do so will create poverty traps, work disincentives and increase the number of children in poverty." The Tánaiste went on to break that promise, as the Government cut child benefit by €10 per month. The Government now is introducing a new tax on mothers and families, namely, the maternity tax. Women will wonder what they did to the Tánaiste or to the Government to deserve this latest attack because pregnant women will lose up to €2,500 per year to save €40 million. Women do not go on maternity leave to earn extra money and that suggestion and assertion by the Government should be withdrawn because in essence, coming on top of child benefit cuts, the property tax and cuts to family income supplement, particularly for families in receipt of carer's allowance, these are savage attacks on families and children. In some cases, this involves €450 per month for up to six months. For working women who already have made a significant contribution through PRSI and have paid substantial amounts to it, this is highly unfair because there are additional significant costs associated with pregnancy and childbirth and this particular maternity benefit always has been a cushion to protect mothers and families against such costs. The Government had choices but has made a wrong choice in this case. I ask the Tánaiste to reverse it.

It is a tax on childbirth.

They took a tenner away from the children.

One is taxed from the cradle to the grave.

We will allow the Tánaiste to answer. Thank you very much.

The position is that as announced in the budget on 5 December 2012, as of 1 July 2013, maternity benefit will be treated as income for income tax purposes. This proposal was set out clearly on budget day and the general reaction to the measure after the budget appeared to acknowledge it was only fair that two individuals earning the same amount of income should pay the same amount of income tax, regardless of whether that income came from pay or maternity benefit. The proposal is exactly the same as was announced on budget day. It is in the news now because the Finance Bill is going through the Dáil at present.

It was a slow burner.

It is important to state that maternity leave will remain exempt from the universal social charge and from PRSI. The measure has no impact on women who are solely reliant on maternity benefit or low-paid workers who are outside the tax net. The measure brings the treatment of maternity benefits in line with other social welfare benefits, including illness benefits, pensions and unemployment benefits. A woman on maternity benefit, whose employer continues to provide a full salary during maternity benefit, will continue to receive precisely the same take-home pay as she did while working. As I indicated, the measure will not affect the position in respect of the universal social charge and PRSI, from which maternity benefits will remain exempt.

That is a very weak defence of what has occurred, because the Tánaiste was categoric in respect of the child benefit issue and how families are finding it extremely difficult to rear children given the associated costs. The Tánaiste has articulated a view that also has been articulated by the Minister for Finance. He used the phrase that it is correcting an anomaly. Pregnant women are not an anomaly and the bottom line is that €450 per month is a savage cut by any yardstick. While people are taking cuts across the board, the idea of imposing such a large amount on one particular family income is excessive. This will affect 48,000 women per year, that is, working women who also have contributed to PRSI. It is excessive to do this in one fell swoop and it should be reviewed.

Thank you.

There are alternatives in respect of raising the €40 million in revenue that has been identified by the Minister for Finance in this regard because coming on top of the cut in child benefit in particular, this represents a significant attack on the income of mothers and families in the context of the difficulties to which the Tánaiste has drawn attention in the past regarding rearing children, the costs of bringing children into the world and so on.

Thank you Deputy.

Everyone knows that women do not go on maternity leave because they want to get extra money. That assertion should be accepted. I do not accept in any shape or form the idea they somehow are benefiting more than others and it should not have been put forward as a rationale or as a defence for the measure by the Minister for Finance or by the Minister for Social Protection, Deputy Burton.

Thank you Deputy. You are over time.

I ask the Tánaiste to give serious consideration to reviewing this measure because it will have a significant impact on the incomes of quite a number of people. Moreover, it will have a highly significant impact in the case of some people. In particular, I have come across young families in receipt of family income supplement, for example, who also were in receipt of the carer's allowance. A measure undertaken in the previous budget took €100 per week from them.

Thank you very much Deputy.

This measure is anti-women. It singles out women in a particular set of circumstances, that is, women who are pregnant and it is something the Government should reconsider.

This is not a cut at all.

It is if one is in receipt of it.

A woman who goes out on maternity leave will have the same take home pay the week she goes out on maternity leave as the week she was at work so there is no cut in the take home income of any women going on maternity benefit.

It is €2,500.

How can the Government make savings if there is no cut?

What is being done here is where an employer continues to pay a woman who goes on maternity leave, the maternity benefit portion is being treated as income in the same way as all other income and is being treated the same way as illness benefit or any other social welfare benefit.

It is being taxed.

Income is treated the same.

The effect is that the take home income-----

It will reduce the amount of take home pay.

The effect is there is no reduction in income because the take home pay of a woman the week before she goes out on maternity benefit where she is paid by her employer and her income during the weeks she is out on maternity benefit will remain the same and it will be the same when she returns from maternity leave.

There is no saving so.

There is no reduction in income.

There is a reduction in the value of the benefit and the Tánaiste knows that.

Where is the saving?

There is a clear significant reduction in the income derived from the benefit.

Deputy Martin is twisting the situation to make a political point.

Stop playing games. Stop being disingenuous.

A cut is a cut.