I move recommendation No. 1:—
In sub-section (2), page 4, to insert before paragraph (c) a new paragraph as follows:—
(c) the words "or proves that he was unable to obtain remunerative employment by reason of physical incapacity of a permanent character" were inserted after the word "upwards" where the latter word occurs in paragraph (a) of sub-section (1) and.
I put down this recommendation in order to draw the attention of the House to a class of persons who are unduly penalised by the new Budget. When he decided to increase the standard rate of income-tax to 7/6, the Minister decided, quite properly, that some concessions would have to be made to lower income groups, but he confined that not quite but almost entirely to persons with earned incomes. It seems to me that a person with an unearned income which does not exceed £600 and with no other income is definitely a person in the lower income group, and that it is particularly hard at this time that such a person should have his or her income-tax increased to 7/6. Those people are just as much hit by the removal of the subsidies, or any other possible effects of the taxes which were intended to be met, in part at any rate, by special concessions to persons with an earned income. It seems to me to be rather a pity that the Minister could not see his way to do something for persons in the lower income groups whose incomes are below a moderate figure, £600 or £800. He took £800 in the case of persons with an earned income in order to give this special concession.
The actual recommendation I have put down concentrates only on one quite small section, though the section itself deals with the allowances. There was an amendment introduced in the Dáil which I welcome and of which I would like to express approval. It increased the limit from £500 to £600 in the case of persons over 65 who had an earned income. It seems to me that if you make that concession to persons over 65—they are, presumably, persons who saved money and who are living on earned income as a result of their own savings or the savings of near relatives—it would be only right and reasonable that if a person is not 65 but has retired because of permanent disability which has made him unfit to earn an income by means of his own labour, a similar concession should be made. I know that there are difficulties in regard to making any concession at this stage on a Finance Bill. This is not a Party matter in any sense but a matter to which the attention of the House and the Minister should be drawn. If the Minister does not do it now, I think it should be done by him or some other Minister in the future.