Alex White (Labour)

I have listened carefully and with great interest to the debate. There are fundamental questions that arise in the course of the discussion that deserve lengthier treatment, perhaps on another occasion. Senator O'Toole is correct to raise the overarching policy implications of what is proposed. On the face of it, what is proposed has an attraction. However, there is one aspect on which Senator Callely must be wrong - Senator O'Toole disagreed with him across the House - that is, that there is no cost. Let us be aware that tax forgone represents a cost. We need to start changing the way we analyse what has happened in the past ten or 15 years when we speak about tax incentives given all over the country for different initiatives, some of which made sense and were prudent but some of which turned out to be disastrous. If the State indicates it will give tax relief to someone, that represents a cost.

Let us start with understanding what we are doing. Senator McFadden is correct to emphasise the importance of primary care services but that is not what is at issue in this debate. Everyone agrees that we need to promote primary care services and such a policy is vital. I am not sure if I necessarily disagree with the Senator when she says the only way to achieve this is through these means but if she is correct, it is a pity we have arrived at a point where we are saying to ourselves that the only way we can promote and expand primary care services in the community is by incentivising doctors by telling them they will not have to pay the income tax that they would otherwise have to pay. Think for one minute about what that says about our public policy and approach to health care. She has stated the only way it can be done is for us to incentivise doctors in this way. I have a fundamental question in my mind in that regard. By the way, I hope it is not correct. If it is, we should be setting out as a society to try to change this.

Often I am teased by journalists and others. Mr. Sam Smyth is good at taking the line that some politicians speak about the redemptive power of paying income tax and criticising those who advocate the levying of taxes for the public good, but I do so advocate. Sometimes we must go back to the basis of taxation. We levy taxes to ensure we are able to do things that we, as individuals, could not do. As individuals, we cannot provide many of the facilities available in society and thus club together to provide health services, transport services, etc. This sounds basic, but sometimes we must go back to the basis of taxation. I have a fundamental problem with basing public policy, whether on health, education or anything else, on the notion that we incentivise people on the basis that they will not have to pay tax. Everyone should pay a fair level of tax. I agree with the provision in the Bill, on which I will not trespass, concerning an effective rate of income tax. Everyone in the community should pay a reasonable rate of income tax, while pooling our resources as a society to provide decent health services.

The problem is that in the past ten years we have gone too far down the road of thinking that, by engaging in manoeuvres with the tax code, we can incentivise people to do things that the State should do to ensure commonality of service across the community to people of all incomes, irrespective of whether they live in big towns, small towns or anywhere else, a matter about which Senator Bradford and others have spoken. I do not mind if others think this is an argument that belongs to the past and is unrealistic. Let us have that argument about whether we should be talking about creating a society in which a sufficient level of income is levied to provide the services we believe are important. I know many excellent medical people who want to improve the services they provide in the community. I was very much taken by what Senator Twomey said about many of them working out of unacceptable facilities which they want to change. While I agree this is excellent, why should the incentive be a tax cut for them? What is wrong with the incentive being the chance to earn more through more patients and to provide a better service to their patients and communities?