Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I will respond to the issue the Senator has raised. My only point was that we are on section 4. I just want people to know what we are talking about in this section of the Finance Bill. I will not read out the section in full. It amends section 192BA of the principal Act, relating to an exemption in respect of certain payments made or authorised by the Child and Family Agency. Section 4, which this debate has been connected to, is about payments by Tusla and their tax treatment.

I will put it this way. I will give Senator Mullen 100% for creativity for being able to link the debate on the artists' exemption to the tax treatment of a payment by Tusla to a host sharing a house. That is what section 4 is about. I accept that it might be possible, if one is exceptionally creative, to link the debate we have had to the Tusla payment. My understanding of the recommendation was that it was ruled out of order. Essentially, it sought to insert a new section. The recommendation we are discussing has been ruled out of order, and not by me. Senator Mullen has raised an issue discussion on which has been ruled out of order but the Leas-Chathaoirleach has facilitated that discussion. I was ready to deal with section 4, which is about a payment by Tusla. I understand that the exemption of certain earnings of writers, composers and artists allows the Revenue Commissioners to make a determination in respect of artistic works in the following categories only: a book or other writing, a play, a musical composition, a painting or other like picture, or a sculpture.

The Senator has made a good point, and perhaps it can be addressed by the House again separately. Guidelines are drawn up by the Arts Council and the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media to determine whether a work which falls within the scope of the activity listed in the section is an original or creative work and whether it has or is generally recognised as having a cultural or artistic merit and consequently can qualify for the exemption. The Senator makes the point that the Revenue does not adhere to these guidelines and regularly grants the exemption where, the Senator claims, the Arts Council has voiced criticism at the Revenue's approach in that regard. Again, the policy basis for the artists' exemption is to provide further encouragement to creative artists in our midst and to help create a sympathetic environment in which the arts can flourish. I do not see how it is relevant to the objective of the measure to exclude a person solely on the basis of his or her former employment. A work could be artistic, but the purpose of the Senator's recommendation is to exclude people from the exemption based on their former employment.

I was a little surprised the Senator went so hard and was so specific in referring to a particular highly paid individual who availed of the exemption. He did not refer to a name but he clearly publicly identified the person in this House in respect of their tax affairs. I was surprised by the specific nature of where the Senator went in that regard. That person is identifiable, not specifically here today, but identifiable to many people listening to the debate. I was surprised the Senator went that far. As I am sure he will agree, however, artists' inspiration and talent can be found in all unexpected places, even among public servants and public representatives, so we should not be excluded solely on the basis of our previous occupation.

As the Senator has said, the cap was previously €40,000 and has been raised to €50,000. In light of that, I do not believe it is necessary to limit further the relief to those who had a particular income outside the scheme in any of the three previous years. Creativity and talent can be found everywhere, including among public servants and politicians, and it is not right to exclude from the scheme, solely on the basis of the category of his or her previous employment, somebody who would otherwise meet the criteria of the scheme.

I take on board what the Senator has said. The topic he has raised merits a serious debate in its own right. I suggest that some mechanism be found for a serious debate on the issue he has raised. It is not, however, relevant to the HSE home sharing tax allowance, the payment by Tusla detailed in section 4. I have tried to respond as best I can to the substance of the debate raised by the Senator.