Michael McGrath (Cork South Central, Fianna Fail)
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I move amendment No. 11:

In page 7, after line 40, to insert the following:“(3) The Minister shall, within 3 months of the passing of this Act, prepare and lay before the Oireachtas a report on the Department of Finance’s response to the recommendations set out in the Marine Taxation Review dated 8 October 2015.”.

This relates to the marine taxation review completed by Indecon and submitted to the Department in October 2015. It followed from a budget day announcement from the previous year. I welcome the assessment of the potential of the so-called blue economy and the different elements of the marine sector, which has far more potential.

Overall, the report found that employment in the marine sector numbers approximately 18,500 people and turnover is approximately €4.5 billion. The report acknowledges that other countries have a more supportive tax environment generally for the marine sector. The issue I am seeking to highlight is around the seafarer tax allowance. I note that in 2013 the cost of the tax foregone in respect of that allowance was only €400,000. A total of 315 seafarers availed of it. The combined cost of that tax allowance and the PRSI refund scheme - I realise that does not come under the Department of Finance - was a little over €800,000. The quantified benefits, according to this report, were €1.4 million. Indecon arrived at the conclusion that there was a net benefit of €360,000.

The purpose of the amendment is to elicit the response of the Department to the report. It is a substantial report. There are recommendations in terms of changes to the taxation regime across different elements of the marine sector. To my knowledge, there has been no Department of Finance response to the report. I am keen for the Department to offer a response because this is an important part of our economy and could become even more important in the years ahead.

The issues raised with me relate in particular to the seafarer tax allowance and the comparison between the regime in Ireland and other countries. I am not seeking any commitment on that from the Minister at the moment, but I am keen to hear an assessment from the Department on the report and for the Department to set out its intention in terms of whether we are accepting the recommendations or otherwise.