Fergal Browne (Fine Gael)

I move recommendation No. 2:

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

"2.—With effect from the end of 2004, and annually thereafter, the Revenue Commissioners shall lay before the Houses of the Oireachtas a Report detailing in respect of any relief, other than an amount however described which is excluded in the calculation of tax by a body corporate, partnership, or individual if calculating tax—

(a) an estimate of the number who availed of the relief and of the range of the value of benefit;

(b) an estimate of the total cost of the relief to the Exchequer on a geographical breakdown by tax districts; and

(c) a statement of the social and economic benefits of the relief.".

This recommendation provides that annual reports be given to the Oireachtas to justify tax breaks in specific areas such as the bloodstock industry and section 23 and property tax breaks. It is important that we review such tax breaks every year. To be fair I must point out that Fine Gael brought in the tax breaks for urban renewal back in 1986. Former Deputy Fergus O'Brien was involved in that area.

The economic conditions in 1986 were very different to those which prevail now. Unfortunately, the housing situation has become worse. We must question the wisdom of policy decisions which ensured that a quarter of all new housing units built last year were second homes, while there are 50,000 families on local authority housing lists. The recommendation is clear. It provides for closer scrutiny and explanation of tax relief schemes on a yearly basis.