Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Amendment No. 8 sought to end the dual abode allowance, which, the Taoiseach, Deputy Kenny, when on the Opposition benches promised Fine Gael would abolish if elected. I am glad that the Minister has introduced an amendment to exempt officeholders, including Ministers and Ministers of State, from having their water charges deductible from their tax liability through the dual abode allowance. At the time that I highlighted this issue, having clarified with Revenue that Ministers and Ministers of State were entitled to do this, the Minister was quick to respond that this matter would be addressed in the Finance Bill. I again welcome that he has done so. However, the dual abode allowance is not only about the water tax.

I genuinely believe that the system in respect of the claiming of expenses for officeholders, including Ministers, such as the Minister for Finance, Deputy Noonan, and Ministers of State, needs to change. It should be far more transparent. I cannot understand why it does not replicate the system for other Members of the Houses. While most information in respect of this system is published on the Oireachtas website, other issues are dealt with in a very secretive manner. For example, we know so far that ten officeholders of this Government have availed of the dual abode allowance but none of us know for what purpose they have availed of it. A current officeholder who is a Minister or Minister of State can purchase a house in Dublin and can have his or her agents, architects and solicitors fees and mortgage interest in respect of that house written off against their tax bill. He or she could also have maintenance in respect of upkeep of that house, which equates to approximately €6,350, written off against their tax bill. We do not know if that has been done because there is no transparency and Revenue will not, and rightly so, disclose individual's tax arrangements. If the system in respect of Ministers and Ministers of State was the same as that used by other Members, it would at least be auditable and published in terms of the overall allowances received.

In acknowledging that Ministers, Ministers of State and other officeholders will now not be able to claim back water charges under the dual abode allowance, I do not understand the system relating to the maintenance of a second residence in a hotel. It appears that a person who maintains a second residence in a hotel, guesthouse, etc., as many Ministers and Ministers of State do, is entitled to an allowance equivalent to the cost of room rental, which is fair. However, in addition, the officeholder is entitled to an allowance in respect of vouched additional costs associated with maintaining a second residence in a hotel and, as an alternative to vouched expenses, the officeholder can claim a flat rate allowance of €3,500 per annum. Whichever method is adopted will continue throughout the period of office. When I clarified what was meant in this regard, it was suggested that the claim could be in respect of laundry expenses. This is ridiculous. There should not be in place a system which permits people to claim these benefits without any transparency and to have them written off against their tax liability. People should not be able to claim unvouched allowances in respect of which there is no transparency in terms of what is available.

I suggest that the Minister do what the Taoiseach when in opposition a short number of years ago committed to do, namely, he should abolish the dual abode allowance and bring officeholders under the statutory instrument under which the cost of staying in accommodation in Dublin is met. The availability of a €3,500 allowance in respect of the maintenance of a second residence is wrong. If I was appointed a Minister of State today and I decided to buy a property in Dublin, I could have the agent, architect and solicitors fees, mortgage interest and €6,350 per annum written off against my tax liability. That is a huge bonanza. Perhaps nobody is doing this but that this system exists is not acceptable in a situation where tens of thousands of our people are struggling to keep a roof over their heads.

I agree with the payment of expenses in respect of a person who has a second home in the capital or needs to stay in a guesthouse and so on, but the system in this regard needs to be transparent. I accept that my amendment has been ruled out of order but I suggest that the Minister go further than what was proposed therein and do what was proposed by the Taoiseach when in opposition and abolish the dual abode allowance. Perhaps the Minister will outline the rationale for retaining this allowance in its current form.