Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I have opposed the special assignee relief programme for years. We were told when it was introduced that it was conditional on 20 new jobs being created for each person who benefits from it. We can see from the returns to the Revenue from the companies in question that the number of jobs created is nowhere near that figure. There is not a chance that the relief provides that type of benefit.

We do not have the latest figures on the cost of the relief. It cost €18 million in 2017 and the cost had increased in all of the previous years. If that trend continued in 2018 and 2019 and continues into 2020, the relief may cost the Exchequer anything up to €100 million. I have no idea if that is the case because we do not have the figures for 2018 and 2019 and we do not know what it will cost next year.

As Deputy Boyd Barrett mentioned, this is an issue that sticks in the craw of many workers, particularly those who face the likelihood that their pay packets will reduce on 1 January 2020 because we have a passive Government dealing with the issue of flat rate expenses. The affected workers include 80,000 retail workers on low and middle income wages, many of whom struggle to get by and meet bills such as mortgage payments, insurance costs, rent and childcare costs. They will see a reduction in their take home pay as a result of a change that will take effect on 1 January. At the same time, in the Finance Bill the Minister is throwing millions of euro at just over 1,000 people who come to this country to work. We welcome anybody who comes here to work. One of the stipulations is that these people work in a certain environment and must earn over €75,000. The tax relief applies to income up to €1 million. As I have stated previously, three individuals benefit to the tune of €111,000. As a result of this section of the Bill, one individual will pay €111,000 less tax next year than a PAYE worker earning the same salary. Three of the individuals who benefit from the relief earn more than €3 million. There is no justification for this.

I have outlined only what people can write off through the 30% reduction in their tax liability. There are, however, other measures within the special assignee relief programme.

For example, private education for their children can be claimed back under this, as can flights back to their home countries twice a year, medical expenses and so forth. It is a huge suite of nice tax measures designed by this and the previous Governments that is not supposed to happen anymore. It was supposed to run out, although I never agreed with it, and the Minister is deciding to keep it. At the same time, 600,000 workers, many of them in the retail and hospitality sectors but also people such as nurses, will see an impact on their take home pay in January.

I oppose this. I believe it speaks to the ideology of Fine Gael. The Minister takes great offence when I mention ideology or beliefs, passions or principles.

See this speech in context