Arthur Morgan (Louth, Sinn Fein)

It is a change for the Minister of State and I not to be locked in combat on matters, whether across the floor of this Chamber, or in venues outside. The Vincent Browne show comes to mind. Rather, we are dealing with the modernising and consolidation of legislation as regards value added tax, and I very much welcome that. I accept the Attorney General's verdict completely to the effect that it does what it says on the tin, and neither adds nor takes away from the tax system.

I find that almost unfortunate in a way, as someone who represents a Border constituency. Clearly, the whole differential in the VAT rate on the island is an issue, and I hope that following the consolidation some moves will be made to align or merge the taxation systems. That would be good for business, generally, and good for all.

The Bill has eliminated the use of arcane language. That is wonderful because the Dickensian-type phrasing still being used in some legislation can be somewhat frightening in a modern Parliament. Hopefully this will set a positive tone for any legislation coming through the Oireachtas. On a broader note, the whole issue of VAT as a tax tool is very regressive because clearly low and middle income families pay proportionately more as a percentage of their earnings than those on higher incomes. In that regard I clearly have a problem with VAT as a taxation tool. It will not happen under this Government, but sooner or later I hope the whole taxation system will be overhauled and modernised. I am sure the Minister of State would concur with that given the number of levies that have been introduced. We all know the reason the levies were introduced mid-tax year in the emergency budget in 2009. A whole series of rates of PRSI were also introduced and these need to be streamlined and modernised and, more important, made fairer. We need a fairer taxation system in which people can have confidence.

I have strayed a little in terms of this being a consolidation Bill. However, neither I nor my party have a problem with this Bill and wish it a fair wind through the House.

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