Bertie Ahern (Dublin Central, Fianna Fail)

I did not see the "Prime Time" programme last night but received a briefing note thereon. Before dealing with the question, tax incentive schemes have been good in this country and have generated much economic activity. They were introduced with a view to providing incentives for economic development and not to enrich particular individuals.

As Deputy Rabbitte knows, there is an ongoing examination of all the tax incentive schemes to determine whether some of them are too generous, whether they are needed now, whether they require amendment or whether they should be capped. All of these issues have been discussed and the Minister has brought in outside financial experts to assist him in the ongoing examination.

On the last point raised by Deputy Rabbitte, I remember the issue very well but do not remember introducing the amendment at 5 p.m. on the Friday of a bank holiday weekend. I would be surprised to hear that the committee was even sitting then. However, I remember the issue, which was debated for a long time. It arose from the Commission on Taxation's report of that year. There was much argument on the issue outside the House. I may have tabled the amendment late because, as I remember very well, there had been considerable discussion at the time between the leader of my party and the Labour Party. The Deputy will recall this very well. Neither of us would have been surprised that the amendment was tabled so late.

Deputy Rabbitte was implying on "Questions and Answers" last night that I had thought up the amendment over night. However, as he knows, the issue had been discussed for a long time. Former Deputy Ivan Yates expressed concern that if a person came to the State at 11 p.m. and left the following day at 6 a.m., that person would be treated as being in the State for two days. He and I, the then Minister for Finance, tabled similar amendments on Report Stage, of which Deputy Rabbitte would have been well aware. I found this out today having checked the matter quickly at lunch time. Had I had more time, I would have found out more.

The amendment was agreed by the Dáil and continues to apply today. To make a mild political point, if the Labour Party, which Deputy Rabbitte now has the honour of leading although he was representing another party during the debate in question, believed it was so terrible at the time, it had an opportunity to change it through the Finance Acts of 1994, 1995 and 1996. It did not deem it a bright idea to do so.

It should be noted that the administrative practice of Revenue prior to the 1994 Act was based on a number of nights spent in the State. The Report Stage amendment merely confirmed the procedure being adopted at the time. It was quite a contentious issue.

The Deputy asked me if this issue should be examined ten years on. All the tax incentive schemes are being examined and this one should also be examined.

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