Brian Cowen (Laois-Offaly, Fianna Fail)

We have seen a great improvement in the compliance culture with regard to the tax administration system. The number of tax compliant citizens has greatly increased, with one of the reasons being the important changes brought about, particularly with regard to self-assessment for the self-employed. That has brought about a transformation which can be seen through the tax take obtained, in percentage terms, from self-employed people compared to the historical numbers.

In the 1970s and 1980s, when I first came into this House, one of the great problems was the huge estimates of tax liability suggested as being due. This was because the tax administration, if it had not quite come to a halt, was not working in a very effective or efficient way. That was even acknowledged by practitioners within the service itself, and we have seen a great transformation for the better. This has greatly enhanced public confidence in the taxation system. I acknowledge that the move away from punitive tax rates, which fostered a black and grey economy in the past, means that the vast majority of people are now in the system, working legally and meeting obligations.

There will always be a decreasing minority of people who do not meet their obligations fully and do not comply with tax Acts as they should. The Revenue Commissioners have been very effective in dealing with those matters. We have seen, through publication of defaulter lists, an effective mechanism that is a strong deterrent for people against taking risks of non-compliance with tax liabilities.

I take advice from the Revenue Commissioners on these matters, and they tell me the approach they take is in line with best international practice. They are continuously in consultation with other revenue organisations across the world, ensuring they have the most up to date technology and practices available to them to ensure they work effectively. Much congratulation is due to the management of the Revenue Commissioners, and the success of top management there has greatly improved the operation. Having spoken to the top management, I believe it to be a very well run organisation in the main.

Any justified request from the chairman of the Revenue Commissioners for extra staff is listened to with some seriousness by my Department. We should bear in mind our efforts to control public service numbers while recognising that front line staffing for important public services are not compromised. The chairman has made some requests in that regard and they are being processed in the normal way. Overall, we have much to be proud of in the way in which our revenue system works.

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