Paul McGrath Media Centre

McGrath calls on Government to reverse decision to penalise employees as a result of shortened tax year
Fine Gael deputy finance spokesman, Paul McGrath, has today (February 28, 2001) called on the Government to reverse a decision to penalise employees who would normally enjoy a PRSI holiday, as a result of the shortened tax year this year.
"Section 8 of the Social Welfare Bill is increasing the PRSI ceiling for employees from £26,500 to £28,250, which is welcome. The situation to date for employees with incomes over those thresholds was that they got a PRSI holiday for part of the tax year when their income was in excess of the PRSI ceiling. In the last tax year 1999/2000, 340,000 employees availed of this PRSI holiday with an average benefit of £300 each. Since the 2001 tax year will run from April to December it is a shortened tax year of 38 weeks. The net effect of this is that allowances such as personal and PAYE allowances are allowable at 74 per cent of their annual amount.
"It is not unreasonable to expect then that the PRSI ceiling would also kick in at 74 per cent of its value, i.e. 74 per cent of £28,250 (21,690). However, the Government are not allowing this. The result is that 340,000 employees will pay additional tax of approximately £300 (i.e. 26 per cent of £28,250 at 4 per cent) which they would not have expected to pay. There are also tens of thousands of employees in the income bracket, in between £21,690 and £28,250 who would have expected a PRSI holiday, but will not get one.
"This is a very mean approach by the Government, which the Minister neglected to mention when he announced his budget. The Minister is happy to reduce allowances to 74 per cent rate but is not bringing down the PRSI tax ceiling by the equivalent rate and approximately 400,000 employees will pay an additional £300 each in this shortened tax year, " said Deputy McGrath.

Deputy Paul McGrath is appointed Deputy Spokesperson on Finance
Deputy Paul McGrath is appointed Deputy Spokesperson on Finance today, Thursday.
Deputy McGrath expressed his delight at this new and challenging appointment, saying “I am very much looking forward to working in this extremely important area with my colleague Deputy Jim Mitchell."
"The Government’s Finance Bill detailed today will be my immediate concern,” says Deputy McGrath.

Nursing Home Subvention Report - Fine Gael seeks compensation for elderly and families unlawfully treated by the state
Deputy Paul McGrath stated that Fine Gael has tabled a motion for debate in the Dáil this week on the Ombudsman’s Report on Nursing Home Subventions. This motion calls on the Minister for Health to take immediate steps to compensate those who were unlawfully treated by the State between 1988 and 1999.
"This is an extraordinary catalogue of bad practice and financial impropriety for which the Department of Health has failed to take appropriate action, " said Deputy McGrath.
The text of the motion is as follows:
That Dáil Éireann:

condemns the prolonged and systematic improper extraction of money from vulnerable old people in need of nursing home care and from their families by health boards, with the full knowledge of the Department of Health and Children.
notes the flouting of legislation enacted by the Oireachtas and the trauma and distress caused to families by such attitudes which have been starkly outlined in the Ombudsman’s report on Nursing Home Subventions, and the failure of the Department of Health and Children to respond promptly and fully to the Ombudsman, and calls on the Minister for Health and Children to take immediate steps to set up a mechanism to ensure that compensation is promptly paid in cases where people were unlawfully treated during the years 1988 to 1999.

"I will be further raising this matter at the Midland Health Board on Thursday next with 10 questions and a motion," said Deputy McGrath.

"Retired Farmers lose out again," says Deputy Paul McGrath
Deputy Paul McGrath expressed his disappointment that farmers who availed of the E.U. Early Retirement Scheme are again to lose out and have their income reduced.
"Retired farmers who have availed of the E.U. Early Retirement Scheme are the only group of pensioners who have their income capped and even reduced because of the inaction of this Government. Despite an inflation rate of 6 per cent and increases in social welfare payments annually, the rate of pension which these senior citizens receive is capped from the day of entry to the scheme," says Deputy Paul McGrath.
"The scheme operates such that with the maximum pension about £10,000 per annum, the pensioner is required to apply for the Old Age Pension on reaching 66 years. If this pension is awarded, eg. at £6,000 per annum, then that sum is deducted from the original pension of £10,000 p.a. leaving a net £4,000 from the Farm Retirement Pension."
"As the Social Welfare Pension increases, so the other retirement pension decreases thereby capping income at a fixed level for the 10 year period of the scheme," says Deputy McGrath.
"So while other pensioners are enjoying annual income increases by way of Social Welfare Payments, retired farmers are experiencing the buying power of their money shrinking due to price increases, etc.
"In fact the situation deteriorated in 1999 when the EU reduced those pensions by 5.055 per cent, ie. £10 per week for each pensioner on the maximum payment."
"Compensation was paid for the 1999 reduction - but compensation will only be paid at the rate of 75 per cent for 2000.
"At this time when the country is ‘awash with money’ it seems incredible that the Irish Government would leave some pensioners short changed in this way," says Deputy McGrath.
"There are approximately 250 families in County Westmeath who are affected in this way and I call on Minister Joe Walsh T.D. to address this difficulty and have it resolved," says Deputy Paul McGrath.

Job Losses at Dawn Dairies, Moate, Co Westmeath
Deputy Paul McGrath expressed his grave disappointment at the loss of 64 jobs at Dawn Dairies in Moate, Co Westmeath.
"I am extremely disappointed that Dawn Dairies have decided to axe 64 jobs at Moate," says Deputy Paul McGrath.
"This news comes as a major blow to the workers and their families and it seems incredible in an era of the so-called "Celtic Tiger" that such job losses should occur.
"Many of these workers have given decades of loyal service to Dawn Dairies and the previous owners of this plant and it is a cruel blow to them that their loyalty to this company is to be rewarded in this way," says Deputy McGrath.
"For many years this creamery was the premier employer in Moate and with the loss of these jobs it will be a big blow to employment in the Moate area.
"While I acknowledge that Dawn Dairies were very generous contributors to sporting and charity groups in the Westmeath area, nonetheless it is a major disappointment that this plant will immediately cease production and eventually close down this site," says Deputy McGrath.
"These job losses in Moate are proportionally as big as the loss of Digital in Galway a few years ago. Accordingly, I call on the Government to establish a task force to procure a new factory for Moate.
"Surely Moate, located in the heart of the midlands within the Objective One Area which brings a higher level of grant aid from the State Agencies, would be an ideal location for a new industry," says Deputy Paul McGrath.
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	McGrath calls on Government to reverse decision to penalise employees as a result of shortened tax year Fine Gael deputy finance spokesman, Paul McGrath, has today (February 28, 2001) called on the Government to reverse a decision to penalise employees who would normally enjoy a PRSI holiday, as a result of the shortened tax year this year. "Section 8 of the Social Welfare Bill is increasing the PRSI ceiling for employees from £26,500 to £28,250, which is welcome. The situation to date for employees with incomes over those thresholds was that they got a PRSI holiday for part of the tax year when their income was in excess of the PRSI ceiling. In the last tax year 1999/2000, 340,000 employees availed of this PRSI holiday with an average benefit of £300 each. Since the 2001 tax year will run from April to December it is a shortened tax year of 38 weeks. The net effect of this is that allowances such as personal and PAYE allowances are allowable at 74 per cent of their annual amount. "It is not unreasonable to expect then that the PRSI ceiling would also kick in at 74 per cent of its value, i.e. 74 per cent of £28,250 (21,690). However, the Government are not allowing this. The result is that 340,000 employees will pay additional tax of approximately £300 (i.e. 26 per cent of £28,250 at 4 per cent) which they would not have expected to pay. There are also tens of thousands of employees in the income bracket, in between £21,690 and £28,250 who would have expected a PRSI holiday, but will not get one. "This is a very mean approach by the Government, which the Minister neglected to mention when he announced his budget. The Minister is happy to reduce allowances to 74 per cent rate but is not bringing down the PRSI tax ceiling by the equivalent rate and approximately 400,000 employees will pay an additional £300 each in this shortened tax year, " said Deputy McGrath.
	Deputy Paul McGrath is appointed Deputy Spokesperson on Finance Deputy Paul McGrath is appointed Deputy Spokesperson on Finance today, Thursday. Deputy McGrath expressed his delight at this new and challenging appointment, saying “I am very much looking forward to working in this extremely important area with my colleague Deputy Jim Mitchell." "The Government’s Finance Bill detailed today will be my immediate concern,” says Deputy McGrath.
	Nursing Home Subvention Report - Fine Gael seeks compensation for elderly and families unlawfully treated by the state Deputy Paul McGrath stated that Fine Gael has tabled a motion for debate in the Dáil this week on the Ombudsman’s Report on Nursing Home Subventions. This motion calls on the Minister for Health to take immediate steps to compensate those who were unlawfully treated by the State between 1988 and 1999. "This is an extraordinary catalogue of bad practice and financial impropriety for which the Department of Health has failed to take appropriate action, " said Deputy McGrath. The text of the motion is as follows: That Dáil Éireann: condemns the prolonged and systematic improper extraction of money from vulnerable old people in need of nursing home care and from their families by health boards, with the full knowledge of the Department of Health and Children. notes the flouting of legislation enacted by the Oireachtas and the trauma and distress caused to families by such attitudes which have been starkly outlined in the Ombudsman’s report on Nursing Home Subventions, and the failure of the Department of Health and Children to respond promptly and fully to the Ombudsman, and calls on the Minister for Health and Children to take immediate steps to set up a mechanism to ensure that compensation is promptly paid in cases where people were unlawfully treated during the years 1988 to 1999. "I will be further raising this matter at the Midland Health Board on Thursday next with 10 questions and a motion," said Deputy McGrath.
	"Retired Farmers lose out again," says Deputy Paul McGrath Deputy Paul McGrath expressed his disappointment that farmers who availed of the E.U. Early Retirement Scheme are again to lose out and have their income reduced. "Retired farmers who have availed of the E.U. Early Retirement Scheme are the only group of pensioners who have their income capped and even reduced because of the inaction of this Government. Despite an inflation rate of 6 per cent and increases in social welfare payments annually, the rate of pension which these senior citizens receive is capped from the day of entry to the scheme," says Deputy Paul McGrath. "The scheme operates such that with the maximum pension about £10,000 per annum, the pensioner is required to apply for the Old Age Pension on reaching 66 years. If this pension is awarded, eg. at £6,000 per annum, then that sum is deducted from the original pension of £10,000 p.a. leaving a net £4,000 from the Farm Retirement Pension." "As the Social Welfare Pension increases, so the other retirement pension decreases thereby capping income at a fixed level for the 10 year period of the scheme," says Deputy McGrath. "So while other pensioners are enjoying annual income increases by way of Social Welfare Payments, retired farmers are experiencing the buying power of their money shrinking due to price increases, etc. "In fact the situation deteriorated in 1999 when the EU reduced those pensions by 5.055 per cent, ie. £10 per week for each pensioner on the maximum payment." "Compensation was paid for the 1999 reduction - but compensation will only be paid at the rate of 75 per cent for 2000. "At this time when the country is ‘awash with money’ it seems incredible that the Irish Government would leave some pensioners short changed in this way," says Deputy McGrath. "There are approximately 250 families in County Westmeath who are affected in this way and I call on Minister Joe Walsh T.D. to address this difficulty and have it resolved," says Deputy Paul McGrath.
	Job Losses at Dawn Dairies, Moate, Co Westmeath Deputy Paul McGrath expressed his grave disappointment at the loss of 64 jobs at Dawn Dairies in Moate, Co Westmeath. "I am extremely disappointed that Dawn Dairies have decided to axe 64 jobs at Moate," says Deputy Paul McGrath. "This news comes as a major blow to the workers and their families and it seems incredible in an era of the so-called "Celtic Tiger" that such job losses should occur. "Many of these workers have given decades of loyal service to Dawn Dairies and the previous owners of this plant and it is a cruel blow to them that their loyalty to this company is to be rewarded in this way," says Deputy McGrath. "For many years this creamery was the premier employer in Moate and with the loss of these jobs it will be a big blow to employment in the Moate area. "While I acknowledge that Dawn Dairies were very generous contributors to sporting and charity groups in the Westmeath area, nonetheless it is a major disappointment that this plant will immediately cease production and eventually close down this site," says Deputy McGrath. "These job losses in Moate are proportionally as big as the loss of Digital in Galway a few years ago. Accordingly, I call on the Government to establish a task force to procure a new factory for Moate. "Surely Moate, located in the heart of the midlands within the Objective One Area which brings a higher level of grant aid from the State Agencies, would be an ideal location for a new industry," says Deputy Paul McGrath. Return to Media Centre