Olwyn Enright (Laois-Offaly, Fine Gael)

Will the Minister examine the issue of tax compliance and the black economy? We recently passed legislation to recapitalise several financial institutions. However, they have been slow to offer credit but I hope they will do so again.

Someone who acquires a State contract is obliged to provide a tax clearance certificate and is subject to relevant contract law. The State is effectively able to ensure companies are tax compliant prior to receiving contracts. Some small-scale builders, employing a few workers, have recently contacted me. They find it increasingly difficult to compete with those who are not tax compliant, who work for cash and therefore charge significantly less than tax compliant builders. The Minister could deal with this by imposing a requirement on financial institutions to obtain proof of tax compliance when giving mortgages. This should also be introduced in respect of compliance with health and safety requirements.

Last year 12,000 one-off houses were built and it is expected that approximately 9,000 will be built this year. The Exchequer receives 37% of the price of each house but there is no way to ensure it will receive all the tax revenues it should from them. This is worth examining and could be achieved in a way that is not overly bureaucratic.

There is still scope for improvement in the rent supplement scheme. I have highlighted savings that could be made through reductions at the high end of the market because rents have been reduced. The low end of the market is different. It is hard to believe that, despite questions from Members and the Comptroller and Auditor General, we continue to pay almost €500 million in rent supplement every year without having a system to check that the landlords who receive this money are tax compliant. The deposit system also needs to be changed. If the Department of Social and Family Affairs recovered the deposits, that would return €7 million to the Exchequer every year.

Will the Minister also examine the back to education allowance? It has never been more important for people to see light at the end of the tunnel. The criteria in operation make it very difficult to avail of the scheme. Some have to wait up to 23 months, depending on when they lose their jobs. This can be addressed. The difference per annum between receiving unemployment assistance and the back to education allowance is €500. People would be far better off attending a third level institution, upskilling or obtaining a qualification than sitting at home trying to fill time.

Carers are close to everybody's heart and need recognition. The promised national carers' strategy has not been published. Carers are very concerned about the impact of the budget on them. They save the State €2.5 billion per annum. There are 161,000 of them, 3,000 of whom are children providing full-time care. This work needs to be acknowledged. I do not expect any improvements in their conditions but hope there will be no disimprovements.

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