Mary Hanafin (Dún Laoghaire, Fianna Fail)

I did not say the amount would be reviewed again this year. I said that tax expenditures generally were being reviewed by the Minister for Finance. I do not think he intends to review the artists' tax exemption.

The limit of €125,000 was set in last year's budget. As I stated, 82% of people who benefit from the tax exemption earn €40,000 per annum or less. The €125,000 limit was put in place to ensure people in the higher income bracket contribute to taxation. The number of people in this category is quite small. In 2006, 1,300 people had an income of less than €10,000. Some 50% of all artists earn less than that amount. Fewer than 200 people earned more than €125,000. Only the people in that bracket were affected. This was part of an overall policy to hit the higher income earner rather than the lower income earner.

I appreciate what the Deputy had to say in respect of an artist who might spend some time working on a particular piece and who might not do any work the following year. I am reluctant to suggest we change the scheme at all lest people think we would like to change it entirely.

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