Oireachtas Joint and Select Committees

Wednesday, 26 January 2022

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Estimates for Public Services 2022
Vote 7 - Office of the Minister for Finance (Revised)
Vote 8 - Office of the Comptroller and Auditor General (Revised)
Vote 9 - Office of the Revenue Commissioners (Revised)
Vote 10 - Tax Appeals Commission (Revised)

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I want to support Deputy Tóibín's comments about the increase of €81,000 plus €3,000 for Robert Watt. I refer to our report. While we can all take political positions on many issues, there is a factual aspect to this increase, as well as how it was arrived at. Quite frankly, the manner by which that increased was arrived at was bad governance, bad administration and it reflected badly on the Civil Service.

I hate when Ministers that I admire, such as the Minister for Finance himself, go into an almost blind defence of the Government, instead of calling out what happened. We tried to do a report here, but we had nothing but obstacles put in our way by the Taoiseach. One Minister did not even respond to it. The fact of the matter is that this was a cosy deal that was done for one Secretary General in Government Buildings. Then, the Cabinet was bounced into it. That is the reality of it, as I see it and as the public sees it.

I have to agree with the comments made by others about the €81,000 and that €3,000. Earlier on in the Minister's contribution, he referred to the fact that old age pensioners got an increase of €5. Honestly, I am not making this up, and the Minister must find in his own constituency too that it is difficult to explain all of that. This is particularly the case when it has not been explained to this committee, because we are the central figures in the debate around it. They studiously avoided the committee. The Taoiseach did not even turn up for the second day of his Estimates. It does not look good. That is all that I would say on that. I would rail against all that nonsense that goes on in the Government. I have respect for all the civil servants who are decent and honourable men and women and who are trying to make their way in a difficult environment. There is a select few of the civil servants that are running the country. It is not good.

I referred to the pension. I could also refer to report 42, which recommended increases for certain employees at a level within the HSE. It was never honoured by the Department of Public Expenditure and Reform.

That was at the very same time as that Department was being run by the Secretary General who got an increase of €81,000. These people are still not being paid. I asked the Minister for Public Expenditure and Reform, Deputy Michael McGrath, to provide us with a report on this matter to allow us to understand what report 42 is about and why these officials, most of whom are retired, I think, are not being paid. How can an argument be made against them, given the looseness of the process which arrived at this figure and the appointment of the Secretary General of the Department of Health?

Turning to the tax exemption level, this aspect interests me concerning pensions. A man with a brewery pension, who is over 65, contacted me because he is paying tax. The exemption was reduced from approximately €40,000 to €35,000, and the effect overall is that he is losing €11, which is a lot when the income and status of the individual concerned is considered. Are there plans to raise the threshold to bring it back to where it used to be set at €40,000 or €42,000? I would like the Minister to comment on the topic.

Again, regarding pensioners and increases, and the negative message being sent out, and I raised this issue with the Taoiseach as well, the cost of living is soaring. Costs for hauliers, for example, an industry I know well, are significant when it comes to diesel. Those costs are also going to be passed on at some stage to the end users, namely the customers of companies that use the services of couriers or bigger hauliers. On the matter of the Office of the Revenue Commissioners and warehousing of tax during the Covid-19 pandemic, I ask the Minister to comment on what will happen in that regard now. Some businesses have significant sums warehoused. When it comes to the question of repaying those amounts, will the Government be leaving it up to the Revenue to arrive at its own method of recouping that money or will there be some sort of policy change whereby those in this warehousing arrangement for taxes will have a longer term to pay? The dates have been set, but given the problems that are going to be faced in this regard, I ask the Minister to comment on this subject.

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