Seán Ardagh (Dublin South Central, Fianna Fail)

I fully support Financial Resolutions Nos. 28 to 33, inclusive. Some of them were used in the past for tax avoidance purposes. These financial resolutions will simplify the tax code and put everybody on an equal footing. PAYE income is now involved, whether one is paid in shares or patent royalties. Those who are in a position to put this type of tax avoidance scheme in place should not be favoured. We are going some way towards improving the situation in that regard and I commend the Minister on that.

I take on board what Deputy Gilmore said about benefit-in-kind. It appears, however, that only larger employers have put these benefits in place. Other issues have arisen recently with regard to large employers who can give favourable treatment to employees. The question of the ESB and free electricity is a case in point. Large employers who are in a position to avoid tax because they have the necessary resources are favoured. It is unfortunate that some people will now have to pay benefit-in-kind tax on child care, but this is fair and equitable.

The Minister stated that abolishing tax relief on trade union subscriptions will save €26 million in a full year. Some trade union members may pay tax at 41% but I suspect the majority pay at 20%. Some may not pay tax at all. This implies an income to trade unions of approximately €130 million per year. This raises the question of what trade unions do with €130 million. Should there be more regulation, accountability, transparency and reporting of trade union funds and what they use them for? Like all well-governed institutions, they should be up-front with their members and with the public.

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