Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

In respect of the plan on which the Minister, Deputy Murphy, is working, he will make that decision but it will be funded. I am engaged in discussions with him at the moment regarding the future of funding for the Department of Housing, Planning and Local Government for 2018. Any decision he makes will be in the context of the base funding he had for 2017 and any agreement I make with him on budget day.

In respect of the Christmas bonus, there will be another Christmas bonus this year. I will be in a position to confirm what it will be on the day of the budget. In respect of refunds of water charges, they will be funded through expected current expenditure underspends which are surrendered to the Exchequer at the very end of each calendar year. I have a clear idea of where they are at the moment and we will use those funds, which would otherwise be surrendered, to pay for the refund of water charges to those who paid them.

In respect of the cost-benefit analysis on the hospitality VAT rate, my Department has offered me an analysis and options for the future of that rate. That rate, however, like any other taxation decision, is a matter which I will address on budget day. On tax concessions, the figures which Deputy Broughan quoted a moment ago are in line with the most recent figures available to me. As he will know, we carried out a report on tax expenditures in 2016. I will ascertain if another report is available and, if so, I will share it with the Deputy. The total figure which was available at that time, however, was €5.4 billion. Those tax expenditures or releases went into a wide variety of different areas, all of which deliver either an economic or a societal benefit. For example, €550 million was expended on research and development tax credits. Another €355 million was used for medical insurance relief.

In respect of the agreement which my party has with the main Opposition party, Fianna Fáil, we are parties with different political identities. It made a constructive effort to put a Government in place across the period of this Dáil. I will honour that agreement, as I expect it will. As to my future, if I am on the other side of this Chamber in coming years, I will be delighted to be in public life in any way. I will do my best in any job which I am given.

On the diversification of taxes and the Deputy's suggestion for a wealth tax, I have seen few examples of wealth taxes working well in other countries. I think it would be particularly difficult to implement one within the European Union. In an environment in which there is freedom of capital and freedom of movement, I would be concerned that were a wealth tax to be brought in, it would look very good for a period and then we would see capital and wealth move out of our country to avoid such a tax, which in turn would have a negative effect on the economy.

On the modernisation of tax rates, I do not propose to bring in a third rate of income tax or a further rate of taxation. In respect of gross tax collection figures for next year, I have an idea of what that figure needs to look like, but that is obviously one which I will announce on budget day.

In respect of the costs relating to our membership of the EU and the costs of servicing debt, the repayment levels on our national debt are in line with what the Deputy said. Our recent publication of the modified gross national income, GNI*, information made the point that if one considers that modified version of national income, which strips out the ebbs and flows resulting from our very globalised economy, we have a very high level of public debt for a small, open economy. I want to see that debt come down over time, but I do not believe the way to decrease it is by reneging on commitments which we made in respect of that stock of debt.

In respect of the costs of our membership of the European Union, the Deputy is correct. The contribution which we make for membership of the European Union will increase in the coming years as we become a net contributor. That is something which we will have to factor into our budget calculations.