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Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: That is not my question. A motion was passed by the Dáil yesterday which allows for this committee to deal with amendments which would have a potential charge on the State. Our understanding was, when we asked the officials in the Department of Finance, that this was a blanket approach and not just for Government but also for the Opposition.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I know Standing Orders state that is the case but a motion was passed in the Dáil yesterday which dealt with this committee and the Finance Bill and which allowed for amendments to be put forward which involved a charge on the State. We sought clarification that it applied not only to the Minister and were told it was a blanket approach and would allow the committee to deal with...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: Are any of the officials here? It was a finance motion.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I am reluctant to proceed because we have amendments on which I would like clarification.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: With respect, the Chairman's ruling-----

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I will respect the Chairman but the ruling was made before the motion was placed before the Dáil.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: On a point of order-----

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: Section 6 relates to the-----

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: We would like a bit of latitude; otherwise, we will just oppose every section until we-----

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I understand the Chairman has been very flexible. Although the amendments to section 5 have been ruled out of order, I commend the Minister on the review of research and development tax credits, which is overdue. The deadline for submissions is the end of this month. My amendment was not about striking out this section on 75% to 50% but was about a commencement order. If we are having a...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: The point about the research and development tax credits is that while it can be a very important incentive for driving economic activity, there is potential for them to be misused. Hopefully, the review will find there is not misuse of them but the point is they could be misused. While there may be no cost - it will not affect the Exchequer one way or the other - because the company is...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: Will the Department examine the new measure?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I appreciate that.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: My comments are in a similar vain. Can the Minister provide the last year's figure on the number of individuals who are not paid by their employer and could be affected by the provision? I refer to those who are on maternity leave but have not been paid by their employer that would be caught by this new tax and would have a reduced benefit as a result. Has the Minister statistics that can...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: This is wrong. The Minister said it was never the policy that women would benefit. The Department of Finance has provided a note to all employers - I am one myself - indicating that maternity benefit is not classed as income. It was always the position of the Department and it is provided for in the legislation that it is not part of income. Obviously, those receiving additional income...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: She will not get it-----

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I agree with Deputy Donnelly's comments. I am not sure how widespread it is but I know from calls to my office, and from people I know personally, that parents are having to decide which of their children to send to college and perhaps hold him or her back a year because they simply cannot afford the fees. I can see from the Schedule that the fees are due to increase by €250 each...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: In the case of a couple earning €21,000 each, they are not entitled to the maintenance grant, which means they must pay student fees. The cut-off threshold is €41,000 for the maintenance grant and one gets nothing when income increases to €47,000. If they are earning €24,000 each, which are very low incomes and well below the average industrial wage, the family...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: I am talking about a situation where there is one child.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: Finance Bill 2013: Committee Stage (6 Mar 2013)

Pearse Doherty: Is the relief on the standard rate of tax even if the person is paying tax at the higher rate?

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