Fergal Browne (Fine Gael)

I move recommendation No. 1:

In page 7, before section 2, to insert the following new section:

2.—The Principal Act is amended by inserting the following section after section 468:

468A—(1) In this section—

"the consumer price index number" means the All Items Consumer Price Index Number compiled by the Central Statistics Office;

"The consumer price index number relevant to any year of assessment" means the consumer price index number at mid-September before the commencement of that year expressed on the basis that the consumer price index at mid-September 2002, was 100.

(2) For the purpose of computing the amount of any tax credit or allowance in sections 461, 461A, 462, 462A, 463, 464, 465, 466, 466A, 467 and 468 to a person, each sum referred to as a tax credit or allowance shall be adjusted by the higher of either—

(a) such sum as shall be prescribed by law, or

(b) such sum as to which it shall be adjusted by multiplying it by the figure (in this section referred to as "the multiplier").

(3) (a) The Revenue Commissioners shall make regulations specifying the multiplier and shall make corresponding regulations in each subsequent year of assessment.

(b) The multiplier, in the year of assessment 2004, or any subsequent year of assessment, shall be quotient, rounded up to 3 decimal places, obtainable by dividing the consumer price index relevant to the year of assessment by the consumer price index number relevant to the immediately preceding year of assessment.'.".

I welcome the Minister for Finance, Deputy McCreevy, and his officials back to the House. This recommendation seeks the automatic indexation of tax credits. This is currently not the case and the Fine Gael Party believes it should be.