Oireachtas Joint and Select Committees

Tuesday, 16 April 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Impact of Black Market on Small Businesses: Discussion

2:00 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank the representatives of the two organisations for coming. If any committee is able to offer the Minister for Finance €500 million per month, that is what it comes down to. One can talk about percentages, but Professor Schneider's analysis comes down to a figure of €500 million per month, which is a relatively conservative figure. That is how serious the problem is.

In respect of the burden we put on businesses, we are crucifying legitimate businesses through regulations, yet the delegates seem to agree that nothing or very little is being done on the enforcement side. Will they speak about that issue? Do countries that share a land border and have different tax arrangements, be they for fuel or other items, take specific enforcement measures, particularly in the case of fuel and other goods? What would be different about an awareness campaign? I know Mr. Fielding has said the figure tends to rise as the economy gets weaker, but if one looks at the Schneider analysis, the level always seems to be around 14.5% or 15%. Throughout the so-called boom times, it did not seem to shift significantly below that percentage. If people are getting something that is cheap, do they actually care? How would an awareness campaign make any difference in that regard?

The delegates favour a social welfare amnesty. What would be the result in terms of revenue gained for the State and how would it work? Would someone receive a fine and slap on the hand and be told not to do it again? Would he or she pay all or part of the debt? How many might be in this net? I agree with Mr. Fielding about the tax wedge, which is a serious issue. Unfortunately, we will probably not have time today to discuss that issue, but we might return to it.

I return to the figure of €500 million per month. It is ridiculous to think we will not employ perhaps 50 to 60 people in Revenue and the Department of Social Protection to collect that kind of money. We will pursue this issue.

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