Patricia Ryan (Kildare South, Sinn Fein) | Oireachtas source

I move:

That Dáil Éireann shall take note of the Report of the Select Committee on Budgetary Oversight entitled "Examination of the Commission on Taxation and Welfare Report", copies of which were laid before Dáil Éireann on 20th September, 2023.

I am happy to introduce the Examination of the Commission on Taxation and Welfare Report produced by the Select Committee on Budgetary Oversight. As Members know, the committee was established by the Minister for Finance in April 2021 and was driven by one purpose, which was to chart a path forward for our taxation and welfare systems that would that effectively support economic activity and income redistribution while fostering employment and prosperity in a manner that is not only resilient but also inclusive and sustainable. The importance of this task is difficult to overstate, especially considering the formidable challenges facing our taxation and welfare systems. These challenges extend from our fiscal sustainability, which is marked by an ageing demographic profile, to the pressing need to address climate demands and navigate the transition towards a low-carbon economy.

The process undertaken by the commission was, without a doubt, difficult, particularly as it examined sensitive and sometimes controversial policy areas. Nevertheless, its dedication culminated in the publication of a comprehensive and detailed report. This has proven to be an invaluable resource, providing the committee and the Government with substantial food for thought as the State confronts the multifaceted challenges of the present and future. In the committee's role of examining the commission's report we are grateful for its hard work and that of its secretariat. Their dedication to the task is apparent throughout the report. I thank them for their significant efforts.

As a committee, we held ten sessions, dedicated to examining the commission's findings and recommendations and discussing possible solutions to address the issues raised within. It is through these deliberations that the committee has arrived at a series of recommendations we hope might help tackle the complex issues raised in the commission's report. I note that the committee has not commented on each individual recommendation made by the commission but has sought to add value to some of the general issues discussed, and to some of the recommendations made by the commission. In examining the report, the committee discussed a significant portion of it, ranging, among other issues, from tax equity and base broadening and taxes on capital and wealth, through promoting employment and inclusive social protection, land and property, and promoting good public health.

In doing so, the committee met a variety of stakeholders, including representatives from the Economic and Social Research Institute, Social Justice Ireland, Nevin Economic Research Institute, OECD, Irish Tax Institute, Irish Farmers Association, Irish Property Owners Association, Irish Hotels Federation, Restaurants Association of Ireland, IBEC, ICTU and several other organisations, including representatives from the commission itself. On behalf of the committee, I thank all these stakeholders, who lent their insights, appeared before the committee and contributed invaluable submissions. Their input was instrumental in aiding the committee's consideration of the commission's report and shaping the conclusions. I hope the committee's report stemming from these deliberations will serve as a launch pad for continued discussions on what has become an increasingly important area influencing policy formation.

Although the committee made a total of 40 recommendations, I will not comment on each one. The committee also made a number of recommendations that seek to add to the proposals made by the commission. In doing so, the committee took a considered approach to several of the commission's proposals by recommending that greater research, modelling, data and analysis of the potential impact of the proposal be carried out prior to such proposals being considered for implementation. This extends to proposals surrounding VAT increases, changes to the existing capital tax framework and the property market, the cost and distribution of tax expenditures, finance and barriers for SMEs, and the introduction of a site value tax, among others.

I again thank all those who contributed to the report, as well as the committee members, for their engagement. I hope both the commission's report and the report of the Committee on Budgetary Oversight will provide ample scope for deliberation and discussion as we, as a State, seek to navigate our future challenges.

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