Sean Barrett (Independent) | Oireachtas source

I welcome the Minister for Finance, Deputy Michael Noonan, on the start of a happy weekend for him as he escapes the clutches of the troika and company.

I was seeking to limit a fiscal privilege in the agriculture sector. As the explanatory memorandum states, the changes will not apply to a loan where a farming partnership is involved. Tax concessions in the agriculture sector manifest in higher land prices. My recommendation was ruled out because it would cost the Exchequer money. I reassure the Minister that I would never propose anything that would cost the Department of Finance money; I was actually trying to save money. The recommendation was ruled out of order on a ground I did not intend and I will certainly not be pushing it. There is a danger that we create tax breaks for special sectors - they are what are called fiscal privileges - and they result in higher land prices. As the Minister is preparing his medium-term strategy, the aim should be to have a low single across the board tax rate for corporates and people, if possible, with fewer deductions and allowances and fewer career options for tax lawyers and accountants. That should be a principle in the Department. Having more complications, providing exemptions for some, leads to the creation of a huge tax lawyer and tax accountant sector which does not produce anything we need. That is the problem with fiscal privileges. We are making recommendations and, as Senator Paul Coghlan has reminded us of the role of this House in financial matters, I will not push recommendation No. 1, but there is a danger when people receive such concessions, that the economy will be distorted. That is not the development we require. I make this point for consideration by the Minister and his officials in future budgets.