Oireachtas Joint and Select Committees

Wednesday, 11 September 2013

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Overview of 2014 Pre-Budget Submissions: Discussion

3:20 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I wish to make a few comments regarding the accountancy bodies. I note their submission and have to hand a summary recommending that no new taxes or tax increases should be introduced for the foreseeable future and they make the point that this is probably an important statement in respect of the budget. However, when considering the summary of the bodies' submission, at first glance I can count 20 tax changes they wish to make, each of which presumably constitutes a cost to the Exchequer, to assist business. While the accountancy bodies talk about no new taxes, they seek 20 variations to the existing regime in which they really are seeking a reduction in tax because I am sure each measure has been proposed to reduce taxation. They talk about limitations for research and development, an innovation tax band, the employment incentive scheme, an investment incentive scheme, a foreign earnings deduction, closed company changes, tax initiatives targeted at investment in the SME sector, a special assignee relief system, tax incentives to stimulate the property sector, pension fund encashment changes, VAT law changes and the penalty for incorrectly reporting offshore funds. I will ask only one question.

Maybe it was in Mr. Keegan's full document; I have only the summary. Did he have a costing for each of those 20? Sometimes a measure introduced in a budget seems like a good idea but five years later one finds it was of no consequence and was a Mickey Mouse adjustment even though there was quite a case for it. I can think of some that have been introduced that have not had any major practical effect. The Minister goes to all the trouble of making such changes and one wonders whether they are worth it.

There was mention of the need to reform the appeals process. Mr. Keegan might explain what is causing the difficulties. If it is affecting the collection of tax, it is important for all of us to hear that.

I will put two questions to the Society of Chartered Surveyors Ireland. What can we do to ensure that practically all contracts given out by State bodies in Ireland go to companies based in the State? Ireland is out of kilter with the rest of Europe. It would be a miracle if a non-French company got a construction contract in France from a public body. The same is the case in Italy or Germany. We are so good that we design our contracts to suit other European countries, while those countries design their contracts to suit the businesses in their areas. For example, there was the famous contract to print the leaving certificate examination papers that contract should have been designed in a way to suit the Irish industry. Every other country in Europe looks after its own interests before it looks after its neighbours' interests. We have got the balance wrong. Can the representatives give us advice in that regard?

There is the idea of making provision in the contracts of major construction projects to ensure that at least a percentage of young people who are unemployed or were in apprenticeships, as well as young construction workers, are getting some work experience. The society will say these will displace others, but there must be some mechanism to give young people a chance.

I will be charitable to the representatives of the National Off-Licence Association. I will not go there with them. The harm that cheap alcohol is doing in Ireland is severe. Most of this is perhaps being sold through the multiples. I would welcome if the Minister put an extra €1 on every can of beer in off-licences in Ireland. It would be a great day for the country. We will not agree on that. I cannot sympathise with anybody looking to make life easier in the alcohol trade. There is too much alcohol being taken in Ireland, especially by young people.

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