Dáil debates

Wednesday, 23 May 2012

4:00 pm

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)

As stated by Deputy Mac Lochlainn, this issue relates to a company that has been trading in Donegal for well over a decade. I appreciate that Revenue is independent and has to a job to do, which it does well, in terms of the collection of outstanding tax liabilities. The problem is that the scope of Revenue is to collect as much tax as possible without factoring in the wider impact in this regard. For example, had workers not barricaded themselves into the factory yesterday and the sheriff had gained access with his low loaders and taken away machinery, all of them would have been heading to the social welfare office today, which would, as stated by Deputy Mac Lochlainn, cost the State, on average, €800,000 per annum or €20,000 per person, which is disproportionate to the tax liability of the individual concerned.

The individual concerned wants to pay his liability but to do so in a manner which allows him to sustain his business. While I accept that Revenue is independent, I ask that the Minister intervene in some way to resolve this issue, which does not only affect Highland Bakery. I was contacted this morning by a constituent who has been given seven days to pay half of his tax liability, which is impossible for him to do, or the sheriff will be called in, following which 14 people will lose their jobs. I was also contacted last week by another individual who, having been visited by the sheriff the day after he paid his liability, in respect of which I accept payment was late, must now pay sheriff's fees. I spoke in committee about a young girl who had set up her own business in which she employed another individual. She was visited by the sheriff in respect of a €2,000 tax liability and had to scrape and scrounge to get the money together to ensure her equipment was not repossessed but as a result of which she had to lay off her employee. There are 21,000 unemployed people in Donegal.

While I accept that Revenue has a job to do, putting these companies out of business will cost the State more money in the long term. Each of the companies concerned is willing to enter into a phased repayment arrangement with Revenue. I appreciate there are chancers who have money and assets who do not want to pay their taxes. However, I am assured that some of the individuals of whom I speak have already paid their bills but are being charged additional fees by sheriffs. While I accept that sheriffs have a job to do, their actions infringe on the mental health of individuals who are struggling and do not wish to put other people out of work.

There has been much talk about job creation. Some 42 jobs are at risk in Highland Bakery and 12 jobs are at risk in the other company, the details of which I can give to the Minister at a later stage if he so wishes. I ask the Minister to review the wider scope of Revenue and the impact of repossessions which automatically close companies. In terms of Highland Bakery, if this matter is not resolved 42 people will lose their jobs, which will have other spill over effects in terms of non-payment of bank and other liabilities and a loss of revenue to the State by way of payment of PAYE, PRSI, the universal social charge and so on.

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