Derek McDowell (Labour)

It makes perfect sense that we should encourage people — particularly men, as Dr. Henry knows because of her profession — to undergo medical examination regularly. Such examinations are provided by larger companies in particular. That is useful, and should not be subject to benefit in kind.

I am interested in the Minister's reflections on how this provision is working out. Most of us support it in principle but are not sure how it works in practice. The details of the amendments being introduced by the Minister in this year's Bill tend to suggest that it is at least unravelling at the edges, in so far as we are now making exceptions for mobile phones, computers and so on.

All of us support the notion that if one is getting a large or significant portion of one's income by means of benefit in kind, then one should pay tax on it. There are however many fringe benefits which are not of great material benefit and which are clearly not an abuse in the sense of being deliberately provided in order to avoid paying people money. A sensible, pragmatic approach is called for. Otherwise, we run the risk of bringing the system into disrepute and very likely tying up the Revenue Commissioners in a great deal of detail with which they would prefer not to be involved.