Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I thank the Deputies who contributed. I apologise on behalf of the Minister of State, Deputy Richmond. He had to go to another event. I will try to sum up the contributions I have listened to, if that is okay, before I give a closing statement.

Deputy Richard Boyd Barrett raised the issue of tax breaks for forestry as I came into the Chamber. These are issues in respect of which corporates want to play their part in nature restoration and biodiversity. There is a business for biodiversity platform, something the NPWS is considering very strongly in investment in forestry and how that might be shaped. There is a lot of really important work ongoing there, probably not reflected in this particular report.

I take on board also the points about the film industry and the animation sector, which is quite a burgeoning sector in my part of the country, down in the south east. The relief is section 481. I am not sure exactly the tax breaks there. The animation sector, in particular, is growing very strongly, and the incentivisation is there through the tax code to support the film and animation industry in Ireland. Anything we can do there is important.

The Deputy also raised issues about the wealth tax. It is addressed in the report through the capital acquisitions tax.

Deputy Nash raised issues around the property tax and the local property tax as a measure to tax property as wealth or as an asset. It was actually discussed this morning at a session on the future of local government, particularly in the context of funding local government. It was a measure that replaced a shortfall in government funding. There is a bigger challenge there in terms of the revenue base for local authorities as well.

I agree with the issues raised about environmental taxes and broadening the tax base and taxes on wealth and assets. Those are important points. The Deputy raised issues around the carbon tax. It is a progressive tax. Parties in the House are opposed to it but the fact is that it is a ring-fenced tax measure that is there for the retrofit of homes under the warmer homes scheme and other progressive measures relating to climate action.

We do not stress that point enough. It is critically important that the public is aware of how progressive a tax measure it is.

Issues were raised regarding subsidies on fossil fuels. Deputy Nash made a critical point in this regard. It absolutely is the case that as we reduce our dependency on fossil fuels, it will leave a massive gap in revenue. It is something for which we must plan. Pollution is sometimes seen as an externality of our fossil fuel industry but it is important that we plan ahead. We need to rapidly decarbonise our transport sector and be mindful of a cliff edge that could arise in terms of the loss of an income base.

I take on board the points raised about child benefit payments and addressing child poverty. The Government has been conscious of that in the previous four budgets. We are deeply committed to reducing child poverty in this country. As part of the package that will be considered in budget 2025, it is important to give consideration to every measure that can impact positively on child poverty rates.

While the recommendations in the report of the Commission on Taxation and Welfare and the committee's report take a medium- to long-term view, as the Minister of State, Deputy Richmond, noted, work in this area is well under way in the Department of Finance. In addition to work previously outlined, the Department of Finance has conducted a review of Ireland's personal tax system, which was published with budget 2024. As recommended by the commission, the Department is conducting a wide-ranging review of the funds sector under the broad and interlinked themes of open markets, resilient markets and developing markets. A public consultation has been completed and a wide range of research, analysis and stakeholder engagement has been undertaken.

Both the commission's report and the committee's report stress the need to plan for the future challenges facing Ireland. In addition to the annual budgetary cycle, EU member states will, as we move forward, be required to prepare and submit medium-term structural-fiscal plans to the European Commission under a new economic governance framework. Ireland will publish its first medium-term structural-fiscal plan in the autumn.

While the fundamentals of the Irish economy are strong, there are still vulnerabilities in our public finances, particularly given the windfall nature of corporation tax receipts, as referred to by Deputy Nash. Cognisant of theses vulnerabilities and consistent with the recommendations of the Commission on Taxation and Welfare, work is under way to establish the future Ireland fund and the infrastructure, climate and nature fund, which are hugely significant and forward-thinking measures by the Government. The new funds will enable us to invest their receipts to ensure we have the resources necessary to address future structural challenges while, at the same time, minimising the risk of using volatile windfall taxes to fund permanent spending. This Government is taking action now to prepare for the future, while also continuing to invest in our housing sector, our infrastructure and the productive capacity of the economy and tackling the twin challenges of climate change and biodiversity loss.

I thank Deputy Patricia Ryan for bringing forward this motion and the Select Committee on Budgetary Oversight for its invaluable work. A huge amount of work has gone into this valuable and useful report, to which the Government will give careful consideration. I thank the Deputies for their contributions to the debate.

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