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Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I apologise to our guests for the delay. A vote was called. The necessity to attend in the House for votes can disrupt our meetings. I welcome Ms Marie Donnelly and Professor John FitzGerald from the Climate Change Advisory Council and Dr. Kelly de Bruin and Dr. Niall Farrell from the Economic and Social Research Institute, ESRI. The purpose of this meeting is to discuss chapters 13 and...

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I thank Dr. de Bruin and invite Ms Donnelly to give her opening statement.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I thank Ms Donnelly. We will now open to the floor to the members.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I am very much in favour of more timber buildings and at a higher scale.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I advise the Deputy that some of our witnesses might not be-----

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Yes, informally. I call Deputy Durkan.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I am sorry, Deputy. I will allow Ms Donnelly to contribute.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Would Deputy Durkan like to respond?

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I am afraid I am going to cut Deputy Durkan off. He has had his last point two or three times now.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I think they still outnumber us.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: I will hand over to the witnesses. There is a lot in that to go through. I do not know who is brave enough to take it on.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: On fossil fuel subsidies, it is significant that such a low percentage of fossil fuel subsidies tend to be direct taxes. It is mostly indirect taxes. How is tax expenditure factored into those subsidies? We have spent some time in this committee looking at the oversight on tax expenditures, and we have come to the conclusion that the oversight is lacking. There is about €7 billion...

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Will the witness give me an example of what indirect taxes we are talking about when were talking about fossil fuel subsidies?

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: My question ends on the issue of oversight and the Government's understanding of the impacts of those decisions. Do the witnesses think the Government is conducting regular reviews of the efficacy of those decisions? For example, we have looked at tax expenditures in detail and have come to the conclusion the Government is not looking regularly at the impacts. We look at it regarding the...

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: As far as the witnesses are aware, there is no real regular framework mechanism of reviewing those kinds of things?

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: That is a very obvious one. Are there any others that could be put into that category of a legacy issue that is not efficacious?

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Let us stick with the environmental point of view.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Yes, and they are ignored every year. We still give a free pass to aviation and shipping fuel. I know this is a global issue, but Ireland is a huge player in the field of aviation. A lot of aircraft leasing happens here. People listen when Ireland talks about aviation. Is there more we could be doing? What would the witnesses expect to see on this issue? This is an ongoing issue which...

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Yet again, it will come at us rather than us leading.

Committee on Budgetary Oversight: Report of the Commission on Taxation and Welfare: Discussion (Resumed) (1 Mar 2023)

Barry Cowen: Yes, I know.

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