Feargal Quinn (Independent) | Oireachtas source

I am aware that every time I raise anything to do with the budget the Leader says it is a budgetary matter and discussion on it will take place at a later stage, but it is fair to mention that we live in an economy in which we do not have the freedom to tax people without realising that they have the opportunity to go abroad for goods or services, in particular with the Internet. My attention was drawn to something of which I was not aware. I do not attend horse racing meetings but I note that it has been estimated that €1.5 billion of betting money goes offshore because no tax is paid on it when one gambles on the Internet or one does it abroad. I take independent Irish bookmakers as an example, but one could as easily take grocers or others who face the same challenge. If one puts a tax on an Irish company, one cannot enforce it if one is able to buy things abroad, in particular on the Internet. The Minister for Finance should be reminded of the point, although I am sure he is well aware of it.

Many years ago when the former Minister, Charlie McCreevy, announced in this House that he was reducing the betting tax from 20% to 10%, there were howls of protest and it was said that he was looking after his friends in the horse racing industry. The following year he revealed to the House that he had made more money from the tax being at 10% than he had when it was 20% and he was going to reduce it to 5%. He again made more money on the 5% tax than he had made on the 10% tax. That is a real reminder to us, and it was before the advent of Internet betting. It is important to remind the Minister that every time one taxes something in Ireland, if it is capable of being avoided by going on the Internet, we will lose out. Let us ensure we are aware of that.