John Paul Phelan (Fine Gael)

I move recommendation No. 1:

In page 11, before section 2, but in Chapter 2, to insert the following new section:

"2.—The Taxes Consolidation Act 1997 is amended by the insertion of the following new section:

'5A. (a) In this section "relief" shall include any relief other than an amount however described which is excluded in the calculation of tax by a body corporate, partnership or individual in calculating tax.

(b) Every relief shall automatically lapse, despite any provision to the contrary in any section, after 5 years unless specifically renewed.

(c) Before any relief can be renewed the Minister shall cause to be presented to the Oireachtas a report detailing the numbers who availed of the relief, the total cost of the relief to the exchequer on a geographical breakdown by tax districts.'."

This recommendation relates to tax reliefs, which virtually every Senator spoke about yesterday. Most tax reliefs have served a very useful purpose up to a point, particularly in the area of property where many of them are concentrated. However, tax reliefs may now be part of the problem rather than part of the solution. This recommendation would ensure that every tax relief would become redundant after five years and would have to be reintroduced by the Government.

The second part of the recommendation stipulates that the Department of Finance would have to produce a report outlining the cost of a particular tax relief, the number of people who availed of it and whether it has served its purpose before it could be reintroduced. Tax relief is a controversial issue and opinions on it differ.

The stallion fees relief issue is extremely controversial. I do not have a problem with this particular tax relief but I can understand how some people do. It would serve a useful purpose if this recommendation was adopted as there would be regular Oireachtas discussions on the usefulness of tax reliefs and changes that need to be made to them. I await the Minister of State's response to this recommendation.