Seanad debates

Wednesday, 4 March 2009

11:00 am

Photo of Dan BoyleDan Boyle (Green Party)

Some Scandinavian countries collect up to 50% of their national income in taxes. The level of tax a state collects determines the level and quality of public services it has. Not only do we need to bridge the gap in current public expenditure, but the issue of taxation needs to be addressed by all political parties if we want to develop a better society and increase the quality of public services. Those who think that some elements of our tax system are unfair believe there should be a focus on how the tax burden is distributed. The Exchequer figures published yesterday show income tax receipts have fallen by 7% and that there has been a huge decrease in value added tax receipts. Our system of taxation should be reformed so we are less reliant on taxes such as VAT and stamp duty on the purchase of property. We should concentrate on ensuring the tax burden is more fairly distributed across a range of taxes. There needs to be proper equity within the taxation system.

Some 28% of workers pay no income tax. Our higher rate for very high income earners is relatively low. As interim measures, I hope these areas will be addressed and will help with the shortfall we have in the meantime. An anticipatory debate on the budget would be very good. The Government and the country would benefit from the collective wisdom in this House and it should contribute to the necessary debate. I will see what is possible in that regard.

A number of Senators raised the question of St. Patrick's Day trips by Ministers. The number of trips will probably be smaller than in previous years, but the focus of those trips will be aimed very much towards attracting investment into the country and selling the country as a destination for goods and services and for the establishment of new industries. A secondary element to these trips is to recognise, identify and support Irish communities abroad. It is our national holiday and that is an important function of Government representatives when travelling abroad.

Senator O'Donovan raised the question of the undocumented Irish finding themselves in an economic bind because of the scale of the recession in the United States, and this needs to be added to yesterday's calls for a particular debate and approach from the Irish Government in addressing these needs. He also asked about the white fish fleet and the financial situation of many boat owners who are able to pay only the interest on very substantial loans and the effect that has on coastal communities. This needs to be taken into account because we need to develop and support a fishing industry for our economic future. Senator Kelly also made that point on the development of the tourism industry and time can be given for a debate on it in the House.

Senator Cummins asked about the situation in Bausch & Lomb and his concerns will be passed on to the Tánaiste and Minister for Enterprise, Trade and Employment. The Government made a policy decision to establish a €100 million fund to protect existing jobs and I presume this is one of the areas where the fund will have an effect. Returning to the general debate on the Exchequer returns, Senators Ross and Bradford made several statements. Senator Bradford made a largely positive contribution, but the use of phrases such as "national bankruptcy", "last chance saloon" and "going down the tubes"——

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