Seanad debates

Wednesday, 12 May 2004

5:00 pm

Photo of Joe McHughJoe McHugh (Fine Gael)

I will not respond to the items raised by Senator Leyden because they are not appropriate to the motion. However, I shall refer to something Senator Ross said about the economy and all the debates that have taken place on it. Senator Ross's viewpoint is simplistic. Every time he speaks about the economy, he speaks about the Government and what it will say and what the Opposition will say. All he mentions is income tax. I accept that the Minister, Deputy McCreevy, and the Government have contributed to lowering the income tax band but there is more to the economy. I am glad the Minister is present. This is the first time I have had the opportunity to speak to him and I shall be selective in terms of the two issues I wish to raise.

The Dyslexia Association of Ireland has 37 workshops and employs tutors to carry out essential services for those with dyslexia. On average, each of these workshops raise €30,000 per annum which is completely voluntary. It is raised locally and from the parents of children with dyslexia and from different fund raising activities. That is a direct failure of the Department of Education and Science. While it is not an issue for the Minister's Department, it is an issue for another day. In September 2004, there will be a call on the tutors to pay income tax on their earnings. That is fair enough. Anybody who earns income has to pay income tax. I asking the Minister to provide some form of subsidy or support for these workshops. They are charity organisations and the volunteers are fulfilling a service that should be provided by the Department of Education and Science.

Senator Ross accused us of being selective for one reason. If Senator Leyden and his colleagues are confident that the economy is in a good state of health, there is no reason we cannot subsidise these workshops because these volunteers are being hammered and are faced with brick wall after brick wall. I met with a group from Letterkenny last night which is crying out for some form of support or acknowledgement of their work.

The second item I wish to raise is non-residents accounts. I am not talking about tax evasion. I do not condone tax evasion and never will do so. I am referring to elderly people who have accounts in Northern Ireland and the UK, containing €5,000 or €6,000.

A tax amnesty was introduced which was a good scheme to recover money from people who were laundering money or earning income illegally without paying tax. I ask the Minister and his Department to examine why the Revenue is looking for 230% on top of the penalties and the sums that must be repaid.

I know of an elderly gentleman with €6,000 in an account in Northern Ireland and he must pay back the guts of €8,500 in penalties and interest. That is wrong and is an injustice to the elderly. This is a group of people who were not involved in tax evasion. They may have lodged a few pounds every year. Prior to 1987 and 1988 when the interest rates were high, they were the ones being crucified. The banks are charging these people €35 per hour to access information and that is wrong. Some accounts hold only €1,000, €1,500 or €2,000 and were set up to help put students through college. They are not bogus accounts. These people have not been involved in fraud or tax evasion. If Senator Leyden feels fully confident that the economy is in such a healthy state, why are these people being crucified? They are vulnerable people at the margins of society. Senator Ross spoke about income tax. This generation cannot further penalise those people because we owe them a debt.

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