Professor Niamh Moloney:

I thank the Chair for her question on why we do what we do. These are very important systems and the first three chapters of our report discuss how they are fundamental. We all have touch points with tax and welfare. As a commission, we were conscious at the start of doing in microcosm exactly what the Chair described, namely, asking why we are here, what these systems are trying to do and how we can ensure we get to a good place. We had serious discussions on this and devised five principles that shaped how we examined the systems. One was sustainability; not just fiscal sustainability, but also everything that goes with that – the environment, and how we engage with one another and with society, etc.

On Ms Vaughan's point on reciprocity , these systems are for us and about us and there are different ways in which we interact with them. Regarding her point about contribution and adequacy, we all contribute to the extent we can, but what does that mean? That is why it is critical to have these discussions around how much we can contribute. Linked to this question is the idea that everyone who can work should work, helped by a system that supports that. Our report discusses tapered in-work assistant payments.

Our examination of adequacy, sustainability and reciprocity was important. I believe we are the fourth tax commission in the history of the State, but we have been the first to interact with welfare. To have the adequacy principle running through our report was critical in helping us to think about our recommendations.

Equity was another important consideration – intergenerational equity, equity between tax spaces, and equity in how taxes bite and how they work. Our final principle was efficiency. As with some of the discussions we were having on land, this principle was about ensuring that taxes fall in a way that does not disincentivise work and make a corporation's taxes difficult.

I should stop talking and instead bring in my colleagues, who may wish to contribute on this discussion.