Paul Murphy criticises billionaire profits, calls for windfall tax

Thanks a lot. I want to thank Oxfam for the annual report they do in the run-up to Davos highlighting the obscene and growing wealth inequality in our world. This year's report is entitled Profiting from Pain and it shows quite literally how the billionaires have profited from the pain of ordinary people. One thing that they highlight, which the government doesn't like to talk about, is the fact that while energy bills are going through the roof for ordinary people, contributing to a massive cost of living crisis, the five largest energy companies have made $2,600 in profits every single second. That means that in the time that we have this debate, those energy companies will make a profit of over 2 million euros. The government refuses to tackle the profiteering of the energy companies, refuses to introduce what Oxfam calls for, what we call for, a windfall tax on the super war profiteering of the energy companies. We call for price controls, stop the energy rip-off, and the government rush to the defence of these poor, defenceless billionaires. That's why we need a left government that fights for socialist policies and that defends workers, not billionaires. The report reveals that in this country, the nine billionaires in Ireland increased their wealth by 16 billion euros in the last two years. That is absolutely obscene. While ordinary people were struggling to get by, people like Larry Goodman and Dennis O'Brien were making an absolute killing. The Irish oligarchs increased their wealth by 55% during Covid, but there was not a single new tax on this vast wealth. What more evidence do you want that this economic system is rigged? It is rigged by the 1%, for the 1%. We agree with Oxfam. We have been calling for a wealth tax on the wealth of these billionaires. I am very pleased to have the opportunity to contribute to Oxfam's recent global report on inequality levels. The report draws attention to important issues around wealth and income inequality, costs of living pressures and how policy in advanced economies can respond to the global challenges. In particular, the report highlights the negative effect which the Covid-19 pandemic has had on equality across the world. However, the range of supports which the government put in place in Ireland was extremely effective in stabilising people's income and protecting those most at risk. There has been a lot of discussion here this morning about the energy companies making profits. In Ireland, the main company making profits is the ESB, which the purpose of their profits is to reinvest in energy infrastructure in Ireland. It does not go into any individual's private pocket, any dividends or profits from that source. The recent CSO survey on income and living conditions showed that without Covid-19 income support, the at risk of poverty rate in Ireland would have been more than 8% percentages higher. It fell actually by 1.5% during Covid, down to 11.6%, which we all accept is far too high, but it would have been up at 20% without the Covid measures introduced by this government. The report also highlights the importance of progressive taxation measures in tackling income inequality, and Ireland is a very strong performer in this regard as well. I know the discussion here this morning talks about global issues and domestic issues, but the Revenue Commissioners here in Ireland estimate that in 2022 the top 1.6% of income earners will pay 28% of total income tax and USD charges and receipts. Furthermore, over half the total income tax and USD receipts will be paid by 8% of taxpayers in Ireland. Indeed, the redistributive power of our tax system has been repeatedly acknowledged by the ESRI, the OECD and the IMF. I note that the Oxfam blog on the report highlights the increase in wealth in this country in recent years, and it raises the issue of wealth tax. Of course, there are already a number of wealth taxes in place in Ireland, including capital acquisition tax, capital gains tax and local property tax. They generate £2.8 billion per annum as it stands. I know that some people in this House object to a property tax, whom I thought parties and the left would have generally supported the local property tax. Quite a number of people in this House oppose that, but it is very important in contributing a significant portion of that £2.8 billion. In terms of designing a new tax, the central bank data shows that the main driver of increases in wealth in recent quarters was positive re-evaluation of housing assets. So, generally, people's houses have been increasing from what they were after the financial shock, and that has increased the bank of wealth in Ireland, which is made up of houses primarily as a key element to making up the increase in wealth in Ireland. In terms of the cost of living pressures, we are all aware that inflation has peaked across all advanced economies linked to the rebounding global demand, persistent supply disruptions and pandemic-related effects, and the war in Ukraine is further exacerbating this situation. The government is acutely aware of this and the impact of this, especially on low-income families, that is where we have concentrated all our resources of the £2 billion increases that the government has dealt with since Budget Day, up to the most recent changes in relation to the various increases in relation to helping people with poor poverty. Without that, the situation in Ireland would have deteriorated far more dramatically. However, the causes of the current price pressures are not within the control of the Irish government. The government has to balance the appropriate response to the increased costs of living in Ireland with the unprecedented level of global economic uncertainty and macroeconomic risk. But I am satisfied that the government has taken reasonable step-by-step measures on this issue, and nobody thinks the government can eliminate inflation. All the government can do, and as the taxpayers' money we are using, is to ameliorate the worst effects of the inflation, especially on those who feel it most. The Minister speaks about the redistributive power of our tax system. I am not sure if you did not notice the Oxfam Wealth Report, whereby the billionaires have gotten richer, 55 per cent richer over the course of the last two years, while there are 700,000 people living in deprivation. It is not much redistributive power if the wealth continues to funnel upwards, and the inequality continues to accelerate. Sometimes when you say Ireland is the fifth richest country in the world, GDP per capita, people think that there is no way. It could not be. Look at the housing crisis. Look at the number of people homeless. Look at the health crisis. Look at the education crisis. Look at the crises all around us. Look at the epidemic of low pay. The reason why Ireland can be the fifth richest country in the world, and have all these social problems, is because the wealth is controlled by the super wealthy, accumulated in their hands, and you have a government that represents their interests. That is why that is the answer, and the answer is to go after that wealth, both through taxation and through nationalisation. I also just want to highlight the fact that this is an international report in relation to Ireland's contribution to overseas development aid. To this end, we have increased the cash allocation of overseas development aid for the last eight consecutive years, with the contribution this year above 1 billion euro for the first time ever. In relation to the global issues, we are making a contribution appropriate relative to our size of the world economy. I do want to say that there is a research paper available on the ESRI website which shows that the vast majority of wealth in the form of non-financial assets, with the largest components of households in Ireland, are derived from their residents or from their farmland. That is what the ESRI report, and you just asked about that. It is not from our officials here in Ireland. The OECD, and I am sure everybody has to give equal respect to the OECD's comment, said that Ireland has the most progressive system of taxes transfers of any OECD member. I just want to put that on the record. They are not from the Government of Ireland or the Department of Finance figures, but I do understand the issues that you say. People on approximately 15,000 gross income pay less than 1% of the effective rate of tax, whereas, rightly so, people on 100,000 pay 38.1%. If you are up to 120,000 for those people, the effective tax rate is well over 40%. That is progressive taxation. The higher your income, the higher your percentage of tax. It is very important to say that. We have made strong efforts in relation to those areas. Of course, we can do more. I do accept that the COVID situation did transform world economies. I do accept that it was transferable wealth as a result of COVID. I do accept that the OECD says that Ireland has the most progressive, distributive form of taxation of any of the OECD members. Thank you very much.