In yesterday's Irish Independent, there was the revelation of the Minister for Jobs, Enterprise and Innovation, Deputy Mary Mitchell O'Connor, proposing that there would be a special 30% tax rate for Irish graduates abroad who would be returning to Ireland. Her spokesman has essentially confirmed as much in his comments this morning in response to the story. It beggars belief that such a proposal could be put forward by the Minister for Jobs, Enterprise and Innovation given the discriminatory nature of the proposal itself. In essence, anybody who stayed with it in Ireland, committed to a house, mortgage, is a graduate and stayed the pace here will be paying up to a 50% marginal rate of tax on salaries of more than €33,500, whereas somebody coming back will only be paying an effective rate of 30%. Obviously, the Government could not restrict that solely to Irish graduates. Presumably, it would apply to European graduates. That would mean that Europeans would be on a 30% tax rate at the same IT desk or place of employment as the person who graduated, worked and stayed in Ireland, who would be on about 50%.

Can the Taoiseach confirm that the proposal is not going to proceed? It makes absolutely no sense. It is very discriminatory. It refers to anyone earning more than €75,000.

Clearly, construction workers and others on similar earnings need not apply. The proposal is discriminatory in that respect also. Does the Taoiseach accept that such a measure would be discriminatory and unfair and will he confirm that it will not be realised in the forthcoming budget?

As one graduate said to me yesterday, people on the Government side and other sources have been questioning calls for investment in education and child care. This type of investment is the most effective way of dealing with medium and long-term issues with a skilled workforce. We need to invest in these areas rather than having resources spent in such a discriminatory manner, with dubious outcomes in terms of the objective. In other words, it would make far greater sense to allocate resources to third level education to prevent the decline in world rankings that is occurring and to give additional supports to child care providers and the child care sector, which is labouring under great strain. Many graduates in the child care sector earn close to the minimum wage and are in dire straits. This is a question of priorities and the Minister needs to sort out our priorities in that regard.

The matter the Deputy raises, were it to be dealt with, would be one in respect of a budgetary position and no decisions have been made in-----

Sorry.

The question Deputy Michéal Martin raises is one that would be dealt with as part of the budget and financial implications. I confirm that no decisions have been made about any of these matters. We want to present a budget that is as fair as possible. More than 2 million are working, which is the highest number since about 2009. That is important and while the economy is improving, it still has a long way to go. In terms of fairness, it is important that we introduced paternity leave, which has been applicable since September, and a second free preschool year is in operation for everybody. Emigrants are coming home and it is important therefore that we deal with the supply of housing and provide people with opportunities to secure good housing at affordable prices.

People have correctly raised the question of the difference in financial treatment for Garda recruits, young nurses, teachers and so on. These matters are all being ironed out and many proposals are being made in the context of the budget. I confirm that the figures have not changed, with approximately €1 billion available, which will be split two to one between public services and taxation issues. No decisions have been made by Cabinet.

Emigrants are returning from America, Australia and other countries because they see opportunities. What we want to do is continue to have the country recognised as an attractive location for investment. We are number one in the world for skilled labour and we have climbed nine places in terms of competitiveness. We still have a long way to go in providing educational facilities to give everybody the best opportunity. The Deputy raised this issue yesterday and obviously it has implications further down the line at second level and in primary school.

The Deputy raised the issue of different rates of taxation applying. This issue had not been considered by Cabinet. Every Minister and Department puts forward a view. Specialists with very specific skills have returned to Ireland over the years and this has always been important for particular kinds of industry. The Deputy raised a budgetary matter and I can confirm that no decisions have been made by Cabinet or presented by Ministers at this stage.

In fairness to the Taoiseach, he has developed a skill, well-honed over the years, for answering questions that he has not been asked. It is accepted that the Minister for Jobs, Enterprise and Innovation, Deputy Mary Mitchell O'Connor, has made this proposal. Nobody, including the Taoiseach, is denying that and the Minister's spokesperson essentially confirmed it this morning. The question is whether the Taoiseach believes such a proposal is fair. Does he not accept that it is discriminatory in respect of people who graduated here and work here?

The Minister for Foreign Affairs and Trade, Deputy Charles Flanagan, is nodding. Can he enlighten the House on something?

There is considerable anger that such an out of touch proposal could get to the stage where a Minister announces it to all intents and purposes, believes it to be a fantastic idea and does not think through its legality or discriminatory nature.

Many Irish graduates are asking who came up with this bananas idea and are making the point that anyone who stayed in Ireland would effectively be punished by such a proposal – they would effectively be punished because they hung around.

Thank you, Deputy.

Does the Taoiseach accept that such a proposal as I have described is unfair and discriminatory to Irish graduates here in Ireland – yes or no?

Yes, I do. If somebody comes back from London to work in-----

That is the end of poor Mary then.

We can sit down so.

Maybe Boxer is in the key position to take over. If he is not careful, he could be the Minister before the night is out.

If somebody has been away in London, New York or America and comes back and is working in the same facility as somebody else, and is paying a different rate of tax simply because they have come back, I would regard that as being unfair and discriminatory, of course. Back in 2010, the Government which Deputy Michéal Martin belonged to abolished the incremental credit for the 36-week clinical placements undertaken by fourth year student nurses. That was discriminatory and unfair, but that was because of economic pressure at the time. We are now trying to adjust that, and the Minister met with them yesterday.

I see all kinds of proposals being put forward now.

It cannot be all kinds of everything.

What we want to do with the limited resources we have, being in a better position, is to do it with a sense of fairness. If we deal with one element of social protection and we do not deal with another, is that discriminatory or is that fair? We do not have the resources to deal with all the claims that are coming in, so what we have to do is try to be as fair as possible with what we have.