Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

These fund are set up specifically for foreign investors. A total of 85% is foreign investment. They are structured in such a way as to benefit foreign investors - that is the point. These are foreign investors. This is why it is so important for the dividend withholding tax to be paid. The rate is set at 20%. We will come to this point later, but they do not actually pay 20% because of double tax treaties and other issues that we can discuss later. The Government is facilitating for another year the vast gains paid out to the foreign investors and no tax will be paid.

These are the big boys who came in at the bottom of the market in 2013. That is the year the legislation is specifically targeting. It was when the market was almost at the bottom of the trough. They snapped up properties for next to nothing. The properties increased in value dramatically over the following five years. Yet, the Minister of State is trying to convince us to support a measure that would allow them to continue not paying on the vast gains they will make. As bad as that is and as much as it stinks, the policy is also about incentivising them. If they were thinking about selling up now or developing, the policy is an incentive to hold on for another 12 months and then they can leave the State tax-free with their gains. That is what the Minister of State is trying to convince us about. It does not stack up.