Thomas Byrne (Meath East, Fianna Fail)

It is not acceptable for highly paid professionals routinely to rely on opinions from the Revenue Commissioners. They may need to do so in respect of a complicated transaction but anything that simplifies that process is welcome.

I have a bone to pick with the Minister because I bought a car recently and am affected by the proposal on vehicle registration tax, VRT, which is not to take effect until July. This may be hard on people who bought cars with lower emissions before the changes were announced.

I represent part of the town of Drogheda and in the bad old days there were cases when the gardaí ripped out vending machines for non-oral contraceptives. How will the VAT change for these contraceptives impact on vending machines? The only impact will be greater profit for the vendors. I encourage pharmacists and manufacturers to pass on this VAT decrease. It will be interesting to see if it works. Reducing VAT on condoms is fashionable but while it is worthwhile it runs the risk of not being passed on to the consumer. There is no way to reduce VAT at a vending machine to take or 25 or 23 cent off the price. It is important that those who have called for this measure make sure that the consumer benefits and that there is a health benefit. Whenever someone calls for a reduction in VAT there is the danger that it will not be passed on.

There is some reduction in stamp duty on leases and renting of residential property. Many vulnerable people rent from private sector landlords and it is important that they comply with all the legal requirements. If stamp duty is paid and legal formalities completed the tenant's rights are enforceable in court. Many letting agencies do not put in place rental agreements, which is a breach of the law, and rarely arrange for them to be stamped. Few would pay €30,000 per annum in rent and anyone paying that much would pay stamp duty but is probably aware of his or her rights and obligations.

The Revenue Commissioners have already implemented the stamp duty changes for first-time buyers but this Bill legislates for them. They could do a great deal more about, and there should be greater public awareness of, reporting of foreign rents received, and rents in general for landlords who live abroad. If a solicitor sells a property on behalf of a client resident abroad he or she is personally liable for the capital gains tax if the money passes through his or her hands. Solicitors take that obligation seriously and the Revenue Commissioners have forced some to pay over capital gains tax for their clients although they have not received the money from the clients.

However, I am unsure whether letting agents, who may be in receipt of rents from landlords living abroad, are aware of their obligations to make returns on the rents received from those clients. It would be worthwhile for the Revenue Commissioners to publicise this obligation. I note that one proposed change in the Finance Bill is that an Irish letting agent who manages a foreign property on behalf of an Irish resident client must provide details of the rent accrued to a Revenue inspector. This is a highly positive move because in so far as is possible, Revenue should collect tax from everyone. Over the years, professionals, including solicitors, have been more than happy to pay over and certainly are aware of their obligations. At present however, a considerable amount of money passes through the hands of letting agents that pertains to landlords living abroad or, on foot of the proposed change, to Irish residents with property abroad. The Revenue would do well to make it as clear as possible to agents and landlords what are their obligations in respect of rents received. However, this measure is positive.

That all professionals are becoming enforcement officers for Revenue is to be welcomed. Everyone co-operates and with lower tax rates and a much simpler tax system, no one minds. Nowadays people do not mind paying tax. Members are aware of what transpired in the 1980s when extremely high rates of tax applied and there was a huge disincentive to pay tax. In general, people now are more than happy to comply with their obligations and only a few try not to do so. While professionals have a role to play in this regard they must be made fully aware of what is their role, because I am unsure whether all understand it.

Economic prospects are good in my constituency, which in general enjoys very high rates of employment and, conversely, low rates of unemployment. A certain number of people are employed in manufacturing in County Meath, much of which, certainly within Meath East, is connected to the construction industry. The construction industry employs many people in Meath East and while matters are definitely looking up, some of those who had been employed in that sector are now looking for work. When such people attend my clinics I tell them what they should be considering. Apart from trying to get back into their own jobs, the first priority of those who left school at a young age or before acquiring qualifications at school and who now, unfortunately, have time on their hands, is to retrain and to acquire the qualifications they may not have got before entering employment. Major manufacturers of buckets and steel equipment, which is indirectly connected to the construction industry, are located in my constituency and provide good jobs to people.

While the farming industry is up and down, much farming activity takes place in my constituency and many farmers have other jobs. In general however, people are happy with matters as they are and do not want Members to talk down the economy. They understand the times——

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