Brian Cowen (Laois-Offaly, Fianna Fail)

I set out in my Budget Statement the reason I decided to take a comprehensive approach, and I stand by that judgment. It is important to examine how we can systemically deal with the idea of high income earners being able to eliminate completely their tax burden. A number of approaches could be considered, not just putting a cap on the relief one could claim. Whatever methodology is decided on, based on the broadest possible comparative work, submissions and so on, we must examine the balances between the benefit to the taxpayer and wider community benefits in respect of the schemes themselves. We must examine every aspect. One then gets a much clearer picture of the way forward. As the Deputy knows, some of these schemes, those for which I have not changed the dates, are coming to an end. In looking at this we need to recognise the broader tax relief schemes I have outlined, which are clearly for the benefit of ordinary taxpayers. We are not talking merely of schemes for the rich. The ones we are concentrating on here involve property reliefs, specific area reliefs and so on. We are considering these to see what role they could or should play in the future, given the current level of economic and social development we have attained.

We will also consider what structures should be put in place for people who can access those schemes based on our review of the balance between the benefits for individuals who would invest in them and the wider community benefit which would derive from whatever modification of structure might emerge as a result of the comprehensive review we are undertaking — or the complete elimination of the schemes. Coming into this job at this time, I felt that this was the best direction for me to take.

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