Alice-Mary Higgins (Independent) | Oireachtas source

I wish to make two points. First, I concur that the Seanad Committee on Procedure and Privileges must examine the issue of the interpretation of "the people". If one interpretation has 4.5 million people behind it and the other has a few individuals, we really need to think about that and examine it. Given that these are only recommendations and that the powers are already constrained, it would be appropriate that we do not unnecessarily further constrain ourselves, particularly on the issue of tax. I have always sought to look to some the tax reliefs, because they should be subject to scrutiny on how they are applied. This exemption is one such case.

In respect of the arts, it is good that we support the artists and we need to support the arts in Ireland. I acknowledge that artists in Ireland have had one of the most extraordinarily difficult and challenging years. Absolutely and unequivocally, we need to support artists. Indeed, the artists' exemption is there because in the balancing of cost and benefits, it was felt that it is something that is very important. I welcome it being acknowledged. It is a foregoing of revenue when there is any tax relief but I believe we get a lot more as a State in general from the tax relief that we afford to artists than from some of the other tax reliefs that are in place. For example, the still marginal rate of private pension tax relief is fundamentally inequitable. However, while there is an important role for instruments such as this in supporting the artists, it is appropriate for it to be examined and considered in order that we can ensure that it is performing as it should.

I recognise that the Senator has tried to take on board one of my points. I believe that in examining it, the focus should be beyond just one previous tax year, because for many artists, particularly writers, there may be five or six years in which there is no income and one year in which there is a high income. Therefore, the focus of the examination should be income over a five- or ten-year period. I have spoken about wealth taxes before and I strongly favour the introduction of a wealth tax. In cases where people are earning extremely high amounts, sometimes millions, in the absence of a wealth tax and where tax on capital assets is not being captured in that way, it is appropriate to consider whether this tax relief is needed in such cases. It is always useful to re-examine those issues.

It may be outside the Minister of State's remit but other than looking at the tax reliefs for artists, there are a number of ancillary measures that could be taken, including looking at how grants are provided, how we address social protection, and how we recognise the realities of the lives of artists. There is a suite of measures that should be looked at.

In respect of the Minister of State's remit, the recommendation that has been made is a reasonable one. I am sure Senator Mullen would be happy for the Minister of State to expand its terms and engage in other issues, as might be related. It is worth an examination and maybe we would see some interesting proposals and revisions in respect of this. For example, tax credits could be looked at in respect of artists who are on very low incomes and are not even in a position to benefit from tax exemptions. There is scope for examination and it is a useful discussion to have.