Charlie McCreevy (Kildare North, Fianna Fail)

The comments the Senator has made encapsulate my views on the subject. The purpose of a tax relief should be to encourage an activity that would not be encouraged otherwise. If it tips the balance in favour of encouraging somebody to engage in such an activity, it should be done. There should be a time limit so as to have the maximum effect. The danger with all tax schemes, as with grant schemes, is that they are brought in for a particular purpose but never abolished.

I have introduced some targeted tax schemes this year. A somewhat controversial one concerned a small adjustment I made in respect of private day care hospitals. However, I am in favour of introducing them. The Senator referred to the rural renewal scheme, for which I claim credit. It had an extraordinary effect on some counties, particularly County Leitrim. The Senator knows that the attitude of the people in that county has been quite extraordinary, indicating that the scheme has had considerable benefits.

No Minister for Finance has introduced more incentive reliefs or closed off more tax avoidance loopholes. The most significant tax abuse I addressed was by way of a cap in my first Finance Act. When I introduced it, my officials were dubious but the measure had a beneficial effect—