Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 20:

In page 124, to delete lines 12 to 17.

We discussed this issue at length on Committee Stage. It is one I raised for a number of years with the Minister's predecessors. It concerns the need for bookies, those placing bets and the industry as a whole to pay more tax. That there is a need for a larger contribution is accepted across the industry. Currently, the rate is 1% rate. A 2% rate is proposed in the Bill. During the years I have examined the accounts of many independent retailers. The increase would have a dramatic and, possibly, drastic effect in that it could move them from profitability to loss making and, therefore, lead to the closure of some independent retailers, with the associated loss of jobs which are mostly in rural Ireland. That would only be to the advantage of some of the larger operators and possibly move more people to bet online. For a long time we have been arguing for a 3% rate to be placed on the punter, not the industry which would face a challenge in absorbing the increase, given its profitability. The Minister has not agreed to that proposal. We debated the issue on Committee Stage, which is why we, in Sinn Féin, have tabled an amendment to delete the lines that increase betting duty. I am doing so reluctantly, as I believe the industry should pay more tax, but at this stage in our discussions on the Finance Bill, it is clear that there is no other option but to seek to delete the lines. Otherwise, the Bill will have a drastic effect.

I am conscious of the damage a gambling addiction can inflict in our society and have long argued for an increase in betting duty, but it is being done in a way that will hit the smaller, independent bookies far more. There is a proposal from the industry on methodology. I understand that, although there was not universal acceptance of a gross profits model in the past, there is now. It is similar to the model operated in Britain. The industry has argued in favour of rates of 10% and 20% on different sectors. This model is worth considering. Despite our position on the imposition of a 3% tax on the punter, we are open to considering the proposed model. I, therefore, urge the Minister not to proceed with the measure proposed in the Bill at this time. On Committee Stage he acknowledged that every tax increase could have an impact, but this one could have a very clear impact. Sometimes, it is up to us to weigh the impacts and benefits. We are also conscious that the costings are just a multiplier of the increase from 1% to 2% without any real extrapolation of the effects on independent retailers. For that reason, I will oppose this section of the Bill.

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