Joan Burton (Dublin West, Labour)

It is a valuable industry employing many people. It is a globally competitive industry which should be encouraged. The other side of the story was that, officials from the Revenue Commissioners and a few officials from the Minister's Department, clearly indicated abuses of the scheme. A public debate and public knowledge about incentives should lead us to examine the arguments for a proposal and also the abuses such as aggressive over-use which have been disclosed in the three reports.

Many people are concerned about the lateness in the issuing of tax credit certificates and I ask the Minister to comment. This is causing problems. If the work situation changes for a husband and wife claiming as spouses, late amendments to tax credit certificates can produce a nasty shock for the person who may lose some of their tax credits. I have received many representations on this matter.

With regard to those people who fail to collect tax refunds to which they are entitled, such as those for medical expenses and bin charges, I suggest, as I did last year, the establishment of a tax ombudsman — or woman — with the remit to take cases on behalf of the ordinary taxpayer to the Revenue Commissioners. This ombudsman could speak to the Revenue Commissioners on the issue of repayment of money to which the taxpayer is entitled. This office exists in the United States and in many European countries. It is high time such an office was established.

The proof of the pudding will be in the eating regarding the arrangements made by the Minister for relevant contracts tax. I have raised the matter of significant tax evasion scams which are in operation in the construction industry and as a result the Revenue Commissioners have now agreed to focus audit attention on this matter. Any reform of relevant contracts tax must be thorough, particularly in the case of larger builders and public contracts where there is not a joined-up relationship between PRSI and taxation.

At Christmas, the Minister's colleague, the Minister for Social and Family Affairs, announced on RTE that something like 40% of people involved in claiming the lone-parent allowance were making a fraudulent claim because they were not living alone. A recent report detailed massive PRSI identity fraud, particularly because the computers at the Department of Social and Family Affairs are not geared to recognise non-Irish names. It is the job of the Government to ensure that everybody contributes a fair share but that equally, the country is not left open to identity fraud. This is a growing problem in the UK and much of it is organised by criminal gangs on a global basis. It is indicated that Ireland may be at risk.

I welcome any measures to ensure that the construction industry and contractors are made more compliant and that the employment status of bona fide workers is recognised and honoured. It is early days to decide whether the measures the Minister is introducing will be successful.

I have a couple of other queries to which the Minister may revert.

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