John Kelly (Labour)

I welcome the Minister of State to the House and congratulate him on his recent appointment.

I wish to raise a matter which has been brought to my attention in recent days and concerns how we do our business. The Minister for Finance should clarify the way in which the Revenue Commissioners collect taxes owed to them, which also threatens the viability of other businesses. I am seeking guidance from the Minister of State on this issue. I know a businessman in the wholesale trade who has been delivering to shops in the west for the past 20 years. He recently called to a couple of customers, but both shops had closed down and had "For Sale" signs outside. He was owed €24,000 by one of the shops. The shop had owed him €31,000 but he had worked with the owners to whittle the sum down to €24,000 over a period. The other shop owed him €27,000. The Revenue Commissioners came in and shut both shops down. This wholesaler has absolutely no recourse to recoup what is owed to him and, as we know, the Revenue Commissioners have first call on what moneys are owed. As a result their actions have threatened the viability of his business.

Apart from the fact that the banks would not lend to these two men so they could borrow to pay the Revenue and keep it at arms length, the viability of this man's business, employing seven people, is threatened. I am aware that the Revenue Commissioners have first call on all moneys owed to them. In this case it held a fire sale of assets of one of the businesses that owed my constituent €27,000 but stock work €27,000 was sold for €4,000 to the highest bidder. If my client had been aware that a fire sale was taking place he might have bought his stock back for €4,000 thus compensating him a little for his loss. It is not right or fair and we must find a better way to resolve such issues.

I am blue in the face speaking in the House about this and many related issues. Revenue's actions in this case is similar to those taken by county councils where a business is closed over an outstanding rates bill. If this company must put seven people on the dole it will cost the taxpayer €147,000 to allow Revenue gain just €4,000. There must be common sense and logic and I ask the Minister of State to relay my message to the Minister for Finance. Perhaps there is something that I or my client have missed and he has rights or recourse to get some of his money back. It is not right that his business and staff are threatened with unemployment by the action of the Revenue Commissioners.