Gerard P. Craughwell urges removal of the USC and boosts for cyber funding
Gerard P. Craughwell addressed the House on the finance bill, criticising the Universal Social Charge (USC) and calling for its removal. He urged targeted tax incentives for philanthropy, ring‑fenced funding for cyber security training, fixes to PRSI anomalies and pension abatement, and investment in Galway light rail.
The senator argued the Universal Social Charge came in as a short-term tax for a specific problem and has lingered. He urged that lower-income earners be removed from the USC and expressed hope the charge could be written off in future finance legislation.
He proposed serious tax incentives to attract philanthropists to fund highly efficient incubation centres around the country - citing models like the Portershed and Galway - to support small indigenous industries and local enterprise.
Craughwell repeated a long-standing call to ring-fence a billion euros of multi-annual funding for cyber training, cyber security and the establishment of security operating centres. He noted that Cyber Ireland had adopted the mantra and said funding would come from the relevant department.
He highlighted anomalies introduced after FEMPE in 2012-2013, including Class K PRSI disparities that still affect members of this house and the judiciary. He also criticised pension abatement rules for former private-sector workers and described abatement as effectively a theft of a property right, urging reform in the next finance bill.
Craughwell called for surplus funds to be directed to infrastructure priorities, specifically advocating for light rail investment for Galway City as a substantial state investment. He framed these proposals as practical uses of available resources rather than electioneering.
USC and tax policy
The senator argued the Universal Social Charge came in as a short-term tax for a specific problem and has lingered. He urged that lower-income earners be removed from the USC and expressed hope the charge could be written off in future finance legislation.
Philanthropy and incubation centres
He proposed serious tax incentives to attract philanthropists to fund highly efficient incubation centres around the country - citing models like the Portershed and Galway - to support small indigenous industries and local enterprise.
Cyber security funding proposal
Craughwell repeated a long-standing call to ring-fence a billion euros of multi-annual funding for cyber training, cyber security and the establishment of security operating centres. He noted that Cyber Ireland had adopted the mantra and said funding would come from the relevant department.
PRSI anomalies and pension abatement
He highlighted anomalies introduced after FEMPE in 2012-2013, including Class K PRSI disparities that still affect members of this house and the judiciary. He also criticised pension abatement rules for former private-sector workers and described abatement as effectively a theft of a property right, urging reform in the next finance bill.
Infrastructure and Galway light rail
Craughwell called for surplus funds to be directed to infrastructure priorities, specifically advocating for light rail investment for Galway City as a substantial state investment. He framed these proposals as practical uses of available resources rather than electioneering.
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Transcript
You walked in there unnoticed to me, Senator Crockwell. How you could do that, I don't know. Totally beyond me, how I could walk in unnoticed. But there you go. Kamil Ashkel. Not a bother. Minister, you're welcome to the House. By the way, this is the first time I've addressed you since you were being Minister for Finance. Congratulations. Not really here to give the bill a hammering, but there are a couple of points that I'd like to make. First and foremost, the USC. My colleague, Senator Boyne, made a speech this morning on the USC. It came in as a short-term tax to help with a specific issue, and it has hung around and really it needs to go. And maybe it couldn't have gone in one fell swoop, but certainly it would have been better if we had removed those on the bottom level of income completely out of it. I hope that when you're back here next year as Minister for Finance, that you'll address me having been elected as well, and tell me that you've written off the USC totally. One of the things I'd like to see done, and I mean I'm looking to the future here if you want, I'd like to see the philanthropy thing taken care of here, but I would like to see we have a number of highly efficient incubation centres around the country, similar to the Portershed and Galway, and to give serious tax incentives to philanthropists to come in and spend their money in building these small indigenous industries. I think something can be done in that area, and I believe you would be committed to it, and I believe your partners in government would be committed to it now as well. Something I've been on about for some time, and I know I see Minister Smith in the gallery there, the funding of cyber awareness, cyber security, education and training. I would really like to see, and I know Cyber Ireland took up the mantra from me, and that was to ring fence a billion euros multi-annual funding for the whole area of cyber training, cyber security, the setting up security operating centres. I know it's slightly outside the bill, but the money will come from your department to do that. The other thing that we need to look at, and I'm not going to take a whole lot of your time, is some of the things that were brought in as a result of FEMPE back in 2012-2013. They were brought in without any serious thought. So, for example, Class KPRSI, which Leo Varadkar removed for county councillors, still exists for members of this house. It still exists for members of the judiciary. It still exists where people... A case came to me the other day. A man who paid Class S for his spouse, who works part-time in his company, that was credited as Class K in the department. And, you know, we've got to try and sort out these anomalies and see how they can be fixed. The issue of, and I know you and I spoke about this a long time ago, and that is the whole thing of abatement of pensions. The pension abatement issue is fine if you're coming out of a public service job where you were earning $150,000 a year before you retired. But if you're coming out as a private soldier, for example, it's absolutely outrageous that we would not allow them to keep their pensions. I do believe, I always believed it was theft of a property right. And again, when you're back here, I would ask you to look into that, and perhaps the next finance bill can sort that out for us. Other than that, you know, we are awash with money. It would be nice to see that money put into serious infrastructure problems or issues. And one of those is light rail for Galway City. I think it would be a tremendous investment on behalf of the state. I won't be going to Galway looking for votes for the dial, so I'm clear on that. But, you know, so, look, I'm going to leave it at that. You're my members, not electioneering. I'm going to leave it at that, Minister, and I'm going to thank you for your time. Thank you. Thank you, Senator Crockwell.