I wish to raise another issue that has developed over the past week or two. In recent weeks, the Taoiseach, along with the Tánaiste, held out the possibility of tax cuts, as he said, as the Government finances improve. It would be a miracle of convenience if the scope of such tax cuts became apparent in the run-up to the general election. Such a cynical return to auction politics would surely fly in the face of everything the Government claims it stands for.

The debate on tax cuts has begun and a conversation has started. The tax cuts are being presented as necessary to give middle-income Ireland a break, but who precisely is middle-income Ireland, and will cuts in income tax benefit anyone to any great extent? I refer the Taoiseach to the Quarterly Economic Observer from the Nevin Economic Research Institute, which was produced last week, based on the CSO's 2009 survey on income and living standards, which throws up some important facts, the most important of which is that there is now no middle-income Ireland. What exists is a vast army of poorly paid working people struggling to make ends meet. The average household disposable income after tax, PRSI and universal social charge is €46,000. Some 56% of householders have gross income of €10,000 to €50,000. There are 2 million adults with disposable incomes of less than €500 per week and more than 500,000 are on less than €200 per week. Only 30% of households have a gross income of over €70,000. Income tax cuts would benefit this layer but would do nothing for most households.

Does the Taoiseach agree that what is required to give people a break is not a cynical political stunt by the Government on income tax cuts but a pay increase, particularly for the low paid, an increase in the minimum wage, strong wage floors in the revamped joint labour committees, and affordable child care? A 50% reduction in costs would give more families an extra €50 a week. These are the things that can be done.

Is the Taoiseach prepared to look at these rather than introducing cynical tax cuts? In the debate on tax cuts, VAT has not been mentioned once, even though it obviously would have been of most benefit to those with the least.

Do not hedge your bets.

The Government has set out its priorities for this year in the sense that the action plan for jobs and driving forward the Government's priorities to grow our economy constitute the real priority in terms of creating jobs. As the Deputy is aware, following the exit from the bailout, the Government published its medium-term economic strategy. That indicates a 2% growth this year, 2.5% next year and 3% in 2016. It also indicates that in 2015 our deficit will be below 3%, eliminated by 2018, and all the jobs that were lost during the course of this recession restored by 2020. To that effect, the Government introduced a number of issues in the recent budget to help small and medium enterprises, including bank targets for increased lending and access to credit.

The Deputy mentioned the minimum wage and other things but these are all matters that have to be considered and discussed as we prepare for budget 2015. Work on that measure is already under way. The Deputy also referred to the report from the Nevin Institute, but the ceilings have been set for this year and the budget is in place. As we move through 2014 the Minister for Finance and his Department will monitor the growth of our economy in the context of jobs.

For 20 consecutive months we have had a fall in the live register, which is now approaching European norms. That is the best way of giving young unemployed people an opportunity to get jobs and to pursue careers.

As regards the Deputy's question on tax cuts, I have made it perfectly clear that it is the Government's priority that people hit the high rate of tax on too low a wage at the moment. It is a priority to assist people in these sectors who are caught because of the challenges arising from the economic collapse a number of years ago.

All of those issues will be considered by the Government as we prepare for budget 2015. That work will continue during the course of this year until the budget in October.

The figures I cited were based on 2009 CSO statistics. After three more austerity budgets those incomes have been eaten into again. People are not demanding a cynical attempt by the Government to make a play on tax cuts, but rather to give them real money in their pockets. The Mandate union won a 3% increase for Penney's workers recently, backdated to 2013. Mr. John Callan, a shop steward from Dundalk, was delighted with the backpay but he spent it on the local property tax. Some 3,000 workers got 3% extra in their wages which should enable them to buy into the real economy. People on low incomes require wage increases, not tax cuts. That is what would make a difference to the domestic economy.

I do not buy into this sort of auction politics. People are demanding that these real issues are addressed by the Government, rather than playing games.

I do not accept the Deputy's assertion of auction politics. We have set out this clearly for the preparation of the budget for 2015. The discussion on tax cuts is part of a jobs plan to grow our economy and to provide employment. Research shows that is the best way to reduce the tax burden on people. The Minister for Finance has made it perfectly clear that is a priority for us.

I know the Deputy did not support paying the household charge and she is also opposed to the property tax. Yet the councillors elected on 23 May will have the responsibility of making decisions about the provision of public services in local authority areas.

To answer the Deputy's question again, the Government has made it a clear priority that, depending on how the economy grows and the leeway available to the Government, the reduction of tax and widening of bands are priorities. Clearly, however, it will happen only if it can be afforded. In that sense, careful fiscal discipline and economic monitoring are important elements of the Government's work that is now under way as we prepare for budget 2015.

There are no auction politics here; it is a straight statement of fact. The Government would like to be in a position to help people who are squeezed both by creating jobs and impacting on the level of tax. To be able to do that, however, we must continue with the momentum we have gained and not lose any ground. We will reflect on that as we go through the year and prepare for budget 2015 in October.