TAOISEACH BRIAN Cowen repeated his belief that that everybody, irrespective of income, should contribute to tackling the economic downturn.
He told the Dáil the Cabinet had decided that those earning the minimum wage would be exempt from the 1 per cent income levy.
Mr Cowen said that Ictu representatives had conveyed to him that the income levy could be seen as being at odds with the draft pay agreement's focus on low incomes.
"While the Government believes that it is not unreasonable that everyone should make a contribution, however modest, in accordance with their income in these difficult times, it is prepared, in the context of the importance we attach to social partnership and to the draft agreement, to provide in the Finance Bill that the levy will not apply to incomes up to the level of the national minimum wage,'' he added.
Fine Gael leader Enda Kenny said he did not welcome the introduction of the "Lenihan levy'', but he appreciated the Taoiseach's statement that this would not apply to those earning up to the minimum wage.
Asked by Mr Kenny what numbers were excluded as a result of the Government's decision, Mr Cowen said that while he did not have the figures, about 850,000 workers were outside the tax net.
Mr Kenny said that the Budget, as announced in the Dáil chamber last week, was no longer the Budget. "It has been changed utterly and we will have the same situation with regard to class sizes,'' he added.
Asked by Mr Kenny about public service reform, the Taoiseach said that the task force report, providing an implementation plan, would be published in the coming weeks.
"This will implement and sequence the OECD report on reform of the public service and how to integrate public services in order that we can improve those services,'' he added.
"The plan will improve opportunities for those who work in our public services to provide an integrated, co-ordinated and citizen-centred approach.''
He added that it would "seek to ensure that the very considerable resources provided by taxpayers are used to the best possible effect in terms of the administrative structures we devised and to work in a co-ordinated fashion to get the best possible output for taxpayers''.
