Willie O'Dea (Limerick East, Fianna Fail)

As the Senators will be aware the Tánaiste and Minister for Finance announced the establishment of the Commission on Taxation on 14 February. The work of the commission will help establish the framework within which tax policy will be set for the next decade at least. It is important for the commission to take a strategic, considered and balanced perspective that recognises the evolving challenges we face on the tax front. Therefore the terms of reference of the commission that were also announced on the same day are deliberately broadly defined, far-reaching and allow for consideration of all aspects of the taxation system, as Senator Boyle has said. Introducing the type of very specific terms of reference proposed in the recommendation can only serve to restrict the work of the commission and introduce unnecessary constraints.

When setting up a commission to examine the taxation system generally, it does not make sense to have terms of reference relating to examining stamp duty on contracts for difference, which would be very restrictive. If we were to make the terms of reference so specific that it removes the discretion for the commission, why have a commission in the first place? As the Tánaiste indicated on the Committee and Report Stages in the other House, the members of the commission are drawn from the social partners, the accounting and tax advisory services that advise all businesses, big and small, accomplished people with environmental and economic expertise, and people with wide experience in central and local government. The wide range of skills and knowledge of the members of the commission will ensure we get a report that will help shape future policy in a positive manner. I have every confidence in the chairman, who is the former chairman of the Revenue Commissioners, Mr. Frank Daly. I am sure he is fully conversant with what the commission wants to do and he will ensure the commission is steered in the right direction.