Dr. Tom McDonnell:

Yes. There is a problem there. It has been identified by the committee many times. There needs to be a multi-annual approach to how we deal with tax. It needs to be a more considered approach, particularly when it comes to tax expenditures, which inherently create a lobby group which then supports a measure. For example, we are seeing that with the 9% VAT rate. Groups either support it or do not support it. These things tend to be very sticky and they all have an ongoing cost.

On legislation to consolidate the position with regard to taxes, the question that arises relates to what is the opportunity cost vis-à-visother aspects of legislation. This would probably take a very long time to do properly. It would involve officials from Revenue and the Parliamentary Budget Office.