Thomas Byrne (Fianna Fail) | Oireachtas source

I move amendment No. 26:

In page 27, before section 23, but in Part 2, to insert the following new section:"23.?Any officer/employee of the Executive shall be tax resident in Ireland for the duration of his or her employment with/by the Executive.".

This amendment has been tabled to highlight an issue about which the Taoiseach expressed concern in the Dáil. Deputy Micheál Martin raised the issue of external consultancies providing legitimate tax avoidance for special advisers to the Minister for Health. Two UK companies are involved but I will not name them as they are doing something which is utterly lawful and allowed. They provide consultancy services to the Minister for what is effectively the role of a special adviser. An individual person has been chosen by the Minister to give him advice. We have always had issues with special advisers, as did the Government when we were in government and we appointed them.

In this case the special advisers have been based abroad and have established consultancy companies or provide advice through such companies abroad. This gives them a legitimate tax benefit. Deputy Martin raised this with the Taoiseach who stated he would speak to the Minister about the issue. Deputy Martin stated it will add to cynicism and scepticism among the public if this means of procurement and utilisation of consultancies by the Minister and his advisers is allowed to continue. The practice is unlawful in Ireland and special advisers based here would not be allowed to do it under tax law. It is a retrograde step.

I may well withdraw the amendment and return to it on Report Stage. I accept the amendment may not have the exact effect I intend because some of these advisers are not employees of the HSE but employees of the Minister or the Government. However, it is an issue worth highlighting because of the tax saving in the order of ¤250,000, an amount which would have a significant effect on the budget of many hospitals. It would pay for a number of home helps or nurses. The issue should be addressed. In the Dáil, the Taoiseach replied to Deputy Martin that he would raise the matter with members of the Government, that he did not believe it was acceptable to have consultants involved in work if it had the effect described, that he would certainly raise the issue with the Minister and that he would revert to the Deputy. I am now raising the issue with the Minister to see whether any improvement in the situation has been made.