MINISTER FOR Health Mary Harney refused yesterday to say whether or not she favours bringing to an end a Government scheme that gives all those reaching the age of 70 years an automatic entitlement to a medical card.
Amid speculation that the Government is planning to axe the scheme in the context of the forthcoming budget, Ms Harney said she couldn’t rule anything in or out at this stage.
“I’m not going to comment on the budget. I’m not going to rule anything in or anything out. Everything is being looked at at the moment,” she said.
“In the approach the Government is adopting to the budget, in the first instance we have to be prudent because there are huge economic challenges facing the country.
“There’s been a substantial reduction in the tax take. We know that the global economy is affected by the financial services crisis in the United States and Europe and elsewhere and that impacts on all of us – and that clearly has an impact on the Irish economy, which is a very open economy.
“But in everything we do we will be fair and equitable. Those that need most will get most. There’s no doubt about that,” she added.
Asked whether or not she favoured tax increases, she said the Government needed to ensure it didn’t eliminate the instruments that delivered the economic successes of recent years.
She said low taxes on investment in Ireland has delivered unprecedented investment in the Irish economy and that such investment and enterprise had to be continued to be rewarded.
“We have to continue to reward investment and enterprise . . . and to grow employment. We’ve also got to reward people who work for a living,” she said.
Questioned on whether she would like to see tax bands widened, Ms Harney said a Commission on Taxation was due to report next year.
“I think in the context of that report we do need to look at options to widen the tax base. It’s very concentrated on enterprise and employment.
“In many other European countries, things that can’t move are taxed more than things that can move, that are mobile, and can move from one part of the world to the other,” Ms Harney said.
The Minister added that the Government, in the context of the budget, had to look at spending and taxation and this was what it was doing.
“We’re meeting again tomorrow and next Sunday and all of these matters will be fully debated within Cabinet and the Minister for Finance will make the announcements tomorrow two weeks”.
Ms Harney was speaking to reporters in Dublin following her attendance at an event at the Royal College of Physicians of Ireland.