Jerry Cowley (Mayo, Independent)

Many of them were on the farmers' dole and, therefore, not liable for tax. Some got a few bob from a headage payment and put it aside for a rainy day or for the education of a son or a daughter. They have paid their taxes over the years, as claimed in the brochures. Before 2001 it was taken out of returns on the investment. After 2001, it was taken out as an exit tax. The Revenue Commissioners do not understand or even care that there is an inherent unfairness in this process. People do not have the money to pay and are worried sick and desperate that it will wipe out their life savings. For those deceased, their estates will be liable.

I accept that in some cases there is tax owing, but at the time so many people were not in the tax net. Whose fault is that? It is hardly the fault of the older people. Some 25 years later the Government is seeking this money from people, scared out of their lives, who are in their 70s and 80s. While some have telephoned the Revenue Commissioners' helpline, the majority are afraid to do so. In six days time, these people must make a declaration to the Revenue that they have not paid tax on their insurance investments or else face increased penalties, naming and shaming and possible prosecution. Many are not sure if they paid the tax when opening the investment and many companies involved have gone out of business. I ask the Government to intervene in this matter. Why should the trawl go back 25 years when the Government has limited its liability to six years? Why should the lower limit for the threshold be £20,000 or €14,000?

The Bill is also concerned with penalties. The Department of Enterprise, Trade and Employment has incorporated new provisions to raise the level of penalties in the core consumer legislation enforced by the Office of the Director of Consumer Affairs in sections 68 to 74, inclusive. Legislation includes the Sale of Goods and Supply of Services Act 1980, the Consumer Information Act 1978, the Package Holidays and Travel Trade Act 1995, the National Standards Authority of Ireland Act 1996, the Restrictive Practices Act 1972, the Prices Act 1958 and the Consumer Credit Act 1995. Penalties ranging from €127 to €1,905 are to be increased to €3,000, with the amounts for continuing offences and convictions also increased proportionately for breaches of consumer protection legislation.

The Director of Consumer Affairs raised the issue of the low level of penalties in consumer legislation in two consecutive annual reports. It was felt that dealing with this issue was a matter of urgency that could not await the outcome of the current review of consumer legislation. The section concerning the Package Holidays and Travel Trade Act 1995 was recommended by the Director of Consumer Affairs and the Department of Transport. It will be welcomed by holidaymakers as it increases the timescale within which a prosecution may be taken from 12 months to two years. This takes into account that since the original legislation was enacted, holiday brochures are published earlier and consumers, likewise, book their holidays earlier.

Many in the west believe the Government has given up the ghost in securing manufacturing industry there. IDA Ireland is charged with securing manufacturing jobs but it has been an abysmal failure in the BMW region. In County Mayo, IDA Ireland factories have been sold off to retailers such as the one in Ballina which is now a magnificent car showroom and the Volex factory in Castlebar which is another car showroom. What about those still involved in manufacturing? These companies are being induced to locate in China. However, they have given commitments to the area and provided employment. Many of them would love if the Government had confidence in them to continue their investments in the west. Manufacturing, fishing and agriculture are all in decline, leaving only services. However, jobs are needed to support the services.

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