Michael McGrath (Cork South Central, Fianna Fail)

I welcome the opportunity to make a contribution to the Second Stage debate on the Bill and thank the Minister for his contribution and summary. It follows through on the commitments made last year by the previous Government and essentially enacts the taxation elements of the civil partnership Act which received all-party approval in the Dáil and Seanad last year. The purpose of this Bill is to introduce changes required to the Taxes Consolidation Act 1997 as a consequence of the passing by the Oireachtas of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, the passage of which was a truly landmark decision of the Oireachtas, acting on behalf of the people. The commitment in respect of civil partnership was set out in Fianna Fáil's pre-election manifesto and the agreed programme for Government in 2007. Under the Act, for the first time in Irish law, gay and lesbian relationships have been given official recognition. Such relationships, when registered, enjoy legal recognition and protection. People in committed homosexual relationships who wish to share duties and responsibilities have the choice to register their partnership and become part of a legal regime that fully protects them in the course of that partnership and, if necessary, on its termination. These duties and responsibilities include pension rights, succession rights, maintenance obligations and protection in the event of domestic violence.

The new law recognises and supports the clear diversity in society today. It affords certainty of status and security to civil partners. In a modern society like ours it would be unacceptable to continue to ignore the reality of same sex relationships. It was time that that major gap in the law was addressed. The former justice Minister, Mr. Dermot Ahern, oversaw the passage of the law last year. He said at the time the law "takes nothing from anyone, but what it gives is profound and is positive." He also said its passage showed how Irish society had changed for the better and that it epitomised our Christian and pluralist society.

For many years Fianna Fáil has been to the fore in redressing the obvious legal discrimination against same sex couples. The Prohibition of Incitement to Hatred Act 1989 banned incitement to hatred of a person or group of people on a range of grounds, including sexual orientation. The Act was steered through the Oireachtas by the then Fianna Fáil justice Minister, Mr. Gerard Collins. In 1993, when Fianna Fáil was in government, the then Minister, Mrs. Máire Geoghegan-Quinn, brought forward the Criminal Law (Sexual Offences) Act that finally brought to an end the unfair criminalisation of homosexual practices. The Employment Equality Act 1998 and the Equal Status Act 2004 made it an offence to discriminate against people in employment or the provision of goods and services on a range of grounds, again including sexual orientation. Through these legislative measures the State has clearly shown that people as individuals are entitled to receive fair and equal treatment before the law, regardless of their sexual orientation.

Fianna Fáil will continue to build on the progress made by the guidelines for school principals produced jointly by the Department of Education and Skills and GLEN, Gay Lesbian and Equality Network. The guidelines support lesbian and gay students and assist those who work with them in schools and colleges. We will also support raising awareness in national economic policies that support equality and diversity and the role played by them in attracting tourists and business to Ireland. Deputy Dara Calleary will expand on this theme later in the debate.

The Bill before the House provides for the same taxation treatment for civil partners in a registered partnership currently available to married couples in the areas of income tax, stamp duty, capital acquisitions tax, capital gains tax and VAT. It also provides that a child whose parent is in a civil partnership will be treated the same for taxation purposes as a child of a married couple. This means, for example, that children of civil partners will be treated the same for inheritance tax as children of a married couple. According to the Revenue Commissioners - the Minister has confirmed this today - the tax changes will apply for the full 2011 tax year and, in effect, be applied retrospectively for the earlier part of the year. This welcome initiative will be of benefit to many.

The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 was commenced in January. As a result, same sex couples who got married or registered their partnership abroad are now fully recognised as civil partners in Ireland. The first public civil partnership ceremonies were held in Ireland on 5 April and received widespread media attention.

As GLEN has stated, the Bill before the House is a critically important advance for civil partners. It provides important certainty and security for the many same sex couples who have registered, or are planning to register, their civil partnerships. It also introduces changes to allow a redress scheme for opposite sex and same sex cohabiting couples and gives protection to a financially dependent person at the end of a long-term cohabiting relationship. In essence, a dependent cohabitant can apply for financial relief if the relationship breaks down. Qualified cohabitants can apply to a court for maintenance, property or pension orders if they can prove they are financially dependent on their former partner. To be deemed a qualifying cohabitant, the couple must have lived together for at least five years or two years if they have children.

An equally important aspect of the Bill and last year's legislation is that, for the first time, recognition is granted to the many thousands of relationships in our society involving unmarried heterosexual couples. There have been cases where people have been in a long-term, committed relationship which has broken down for one reason or another. One person in such a relationship may have made great sacrifices to raise children and look after the home, yet when such a relationship ends, he or she may find he or she has no protection whatsoever in the eyes of the law. As far as the State was concerned, there was never a relationship. That major anomaly had to be addressed.

The legislation passed last year provides for some redress in certain circumstances and represents a welcome breakthrough. It has come as a relief to many who are currently or potentially could be affected by these circumstances. Under the Act, a qualified cohabitant may apply for maintenance orders, property adjustment orders, pension adjustment orders and related orders such as attachment of earnings orders. They may also apply for provision to be made from the estate of a deceased cohabitant. Such a person would not have an automatic right to obtain such orders, but a court may make such an order if it is satisfied that the person was financially dependent on his or her cohabitant partner. In taking a decision in that regard, the court has to take a number of factors into account, including the financial circumstances, needs and obligations of each cohabitant, in addition to the rights of others, including spouses, former spouses, civil partners, former civil partners and dependent children of either partner, the duration and nature of the relationship, and the contribution made by each, financially and otherwise, during the tenure of their relationship. Such orders may not affect the rights of spouses or former partners. That was a major breakthrough.

The Minister has made it clear that the same taxation treatment does not apply to cohabitating persons, which is fair enough because in the overwhelming majority of cases they do have the option of marriage. There are some cases where that is not possible. However, in the majority of cases it is an option for them, whereas for same sex couples, until last year, there was no such option to have their relationship recognised before the law. As I noted, cohabitants do not have the same tax rights as married couples and civil partners. Therefore, with regard to income tax, for example, cohabitants will continue to be taxed as single people and unused credits and standard rate bands cannot be transferred between cohabitants. One can argue that is fair enough because in the majority of cases they have the option of marriage, whereas a same sex couple does not have that option. Until last year there was no option available to have such a relationship recognised by the State.

The Law Reform Commission has suggested qualified cohabitants could be classed differently for capital acquisitions tax purposes. In the event that one partner wishes to transfer an asset to the other, under the existing law, effectively they will be treated as strangers.

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