Brian Hayes (Dublin South West, Fine Gael)

I refer to fundamental taxation rights. No one knows where this debate will go. There are independent views across the House which are all legitimate. For the purposes of this Bill we need to say that it is an extension of an Act passed by the Oireachtas which gives rights, rather than fundamental rights, to civil partners.

Why do I think that is important? It is in the public interest that this State encourages people to live together and encourages people in a loving relationship to be at one with each other. That should be recognised by some institutional change, be it a civil partnership or marriage. It is fundamental because the more we support each other and the more families are brought together, the greater the benefit to the State in terms of social protection. It is fundamental to this Bill that it is not just an extension of rights but also a fundamental extension of responsibilities to one another. Some of the most loving relationships I have ever seen are gay relationships. People want to make a commitment to each other in the long term. People want to ensure their house is in order so that if one partner dies, there is proper provision for the other. It is absolutely right that the State would provide in law for that by way of civil partnership. Whether it would extend further on the question of marriage is a question I suspect will be revisited and one on which we will all take a position. The civil partnership Act gives the question of rights and responsibilities to a new category of people who have previously been excluded from the law.

Wearing my Department of Finance hat and having got that off my chest, I want to respond to a number of the excellent ideas that have come from Senators today. Committee Stage may take place next week and we will have the chance to tease out some of the issues. I ask people to remember that we in Department of Finance can only introduce changes to the taxation code whereupon the principles are provided for in the civil partnership Act. We cannot dream up other things that are not in the Act. Changing the taxation code is a logical outworking from the fundamental legislation which is the civil partnership Act.

I thank Senator O'Brien for his very constructive speech. He also referred, quite rightly, to the role played by Seanad Éireann. A number of colleagues made that point. One name I did not mention is former Senator Sheila Terry, who is a member of my party. She produced the first comprehensive policy of any political party on this issue. The bigger the political party, the more difficult it is to get these things through given the catch-all nature of politics. When I was in the House between 2002 and 2007, she produced a comprehensive policy position and I wanted to recognise her contribution.

Senator O'Brien released some queries about the non-payment of maintenance which is a matter for the Minister for Justice and Equality. I will follow that up and respond on Committee Stage in more detail.

Senator D'Arcy referred to difficulties with the legislation and the potential for loopholes. I assure him that if the legislation is not operating as intended, it can be remedied by way of a finance Bill. Unlike other legislation, we have an annual finance Bill which not only implements decisions of the Government in the budget but can also be used to tidy up legislation. If difficulties emerge, we will have an opportunity each year to address them in order that people's rights will not be diminished in any way.

Senator O'Brien asked about the recognition in civil partnership of same-sex marriages in other jurisdictions. Anyone in such a relationship can apply for recognition in civil partnership in Ireland. However, there will be no tax effects before 1 January 2011 because there was no recognition of civil partnership before this point. The law came into effect on 1 January and the benefits in the taxation code will apply from that date, which is fantastic collaborative action from the Department of Finance, but not before. The point of retrospection refers to 1 January 2011.

As I stated in my opening remarks, tax law follows general law and we cannot make provision in tax law for something which was not recognised in general law. Many of the amendments and changes that colleagues want made to the Bill have to fit in with the legislation that was enacted by both Houses last year.

I take on board the general comments of Senator Zappone. Many of her points are outside the terms of the Bill and the wider societal issues to which she referred. Her tax comments are based on the provisions of the civil partnership Act. The tax law can only follow general law and this Bill cannot exceed what is already allowed in the context of the civil partnership Act. The Senator referred to four specific areas where she contends a couple in a civil partnership is not in the same position as a married couple and some form of unfairness exists. I have taken note of the four issues, namely, the break-up question, the definition of "living together", the definition of "relatives", and the role of children. There was a significant discussion on this issue, as she is aware, when the legislation was being debated last year. We might return to those issues on Committee Stage.

There is no tax relief for maintenance payments in respect of children in the context of the break-up of a marriage. Tax relief on the payment is only available for the separated or divorced spouse, which will be extended under this Bill to maintenance payments to separated civil partners and former cohabitants. Senator Burke asked about the non-deductibility for tax purposes of maintenance payments in respect of children of a marriage or civil partnership after separation. The view was that an individual is responsible for paying maintenance to his or her children and should not be given tax relief for that. If we were to make such payments deductible, the logical consequence is that such payments would be taxable in the hands of the recipient, whether from the former spouse or civil partner. It is not proposed to make such a provision in the context of the law.

Senators Bradford and Conway mentioned people in caring relationships such as elderly siblings living together. This is a matter for another day but under capital acquisitions tax provisions, there is a dwelling house relief which ensures that a person who inherits the house will not face inheritance tax liability in respect of it.