I beg to move the Second Reading of this Finance Bill. Most of the matter which is involved in the Bill has already been the subject of consideration by the Dáil, and resolutions in connection with it have been adopted. Generally speaking, the taxation existing before the introduction of this Bill has been continued, and, while a good deal of criticism may be passed on a policy of that kind, it is fairly obvious that unless there is a remarkable reduction of expenditure the taxation must be continued at a high rate. The expenditure for the coming year is considerable, and the taxation will not be sufficient to cover that expenditure. It is hoped during the course of the year to limit expenditure on certain services and steps will be taken to that end; but it is not possible to promise, at any time during the present or the coming year, any reduction in the taxation already imposed. During recent years very considerable additions to the ordinary outgoings of National expenditure have been added to the cost of the State, and, if additional services are required, it must be obvious to Deputies that additional taxation will also be required.
This Finance Bill is, in certain respects, much more exhaustive and far reaching, in respect of certain particulars, than has been the practice here. A good deal of criticism of it has been printed. The Press has taken up the question of certain steps that are supposed to be taken in the Bill to get in Income Tax. It must be remembered it is only fair to those who are paying, loyally and with a due sense of their civic responsibility, very considerable sums into the Exchequer in respect of Income Tax, that they have got some rights, and that it is due to them, as well as to the State, that every person properly chargeable to this particular tax should pay his quota. That is all that is contemplated under the provisions of this Act. For one reason or another, for some years past, certain people have evaded the payment of this tax. In one journal it has been mentioned that we were responsible for that. We have denied it. In another journal it was mentioned that, as Minister for Local Government, I had advocated that policy. In connection with Local Government it is right to say as to ordinary grants properly payable to local authorities and included in the Finance Bill belonging to the Legislature that imposed taxation or distributed moneys, that any interruption of the ordinary flow of these grants into the particular channels for which they were prescribed was taken by us as an invasion of the rights of Local Authorities. We took up the view then, where those grants were not paid, where they were withheld, that the Local Authorities were justified in withholding from payment any sums, not Income Tax only, because that was the least of all the sums, but any sums due to the British Government at the time. It was not contemplated at the time that there was to be a repudiation of those debts. At no time was that policy put forward, or subscribed to or recommended. During the period in question many letters were addressed from the Local Government Department to Local Authorities advising them that, in respect of sums due by them, there should be provision included in their estimates. The fact that they did not pay these sums was immaterial, and the wisdom of that is at once apparent. There were certain Local Authorities throughout the country owing more money to the British Government than they received from the British Government, and if provision was not made in the estimates for the payment of these sums, then when the ultimate financial settlement would come about these Local Authorities would, in the ordinary way, have to include in their estimates sums far beyond their power of repayment. Certain Local Authorities lost far more, immeasurably more, than they were liable for. Other Local Authorities should have paid more than they were entitled to receive, and at no time did we ever suggest that there should be a repudiation of those liabilities. Even those who recommended the non-payment of Income Tax had never in their minds, as far as any of us were aware, any repudiation of lawful debts. Payment of Income Tax was suspended by various orders of the community. Those who comprised the vast majority of the people were not liable to Income Tax, but their political friends would not on principle pay that tax. Those who were politically opposed to Sinn Fein at that time saw at once a golden opportunity for the non-payment of Income Tax.
Those are the people—a great number of them—who now seek to escape this particular liability which, had it not been for the Treaty, they would willingly have paid to the British Government long ago. In any case, no matter who the individual was who owed money in this respect, he cannot be allowed to gain that advantage over his less fortunate brother who paid his way either since we took over the affairs of this country or who paid previously. There is no real injustice, but there is a good deal of interested criticism of these proposals. It is not proposed, at any time, to penalise either the individual or the firm which has not discharged its liabilities in this respect, and every possible facility will be afforded in every case to meet the circumstances of the time, and to arrange for payment by instalments of any sums due. I think the Dáil will realise that to start off in the first year we have full and complete power to impose taxation, with a policy of wiping off debts, is not one that can be recommended. We are now faced with very heavy burdens. We have fairly big responsibilities for the present time, and will have for the future, and every citizen is expected to bear his share of that burden. During the course of the discussion it was mentioned that certain of the indirect taxes fell rather heavily upon one section of the community. They are not relieved of that liability by allowing certain people who have escaped liability for another tax off very lightly in this matter. The proposals we have put forward in respect of certain classes of the community are proposals that have been considered very carefully. We do not know of any other means that will rake into the State the money due to it. The sum involved is a couple of millions. Daily and practically from every Ministry demands are coming in in one form or another for public expenditure, and it is right that they all should know that unless the taxes are collected the public services will suffer and the public credit will be diminished, and it will not be possible for us to negotiate the necessary loans which will be required in this particular year in order to bridge the difference between the revenue and expenditure.
If it be proposed to lower taxation, and there has been some indication of that particular line from certain Deputies, well then expenditure must also be lowered. Very drastic powers are asked for in connection with the non-payment of Income Tax in various parts of the country. The phase that we are passing through renders that necessary. I think it will be plain to Deputies that where there is perhaps the most democratic Constitution in the world that there are certain people inclined to impose upon the sound democratic principles of that Constitution, and certain people who think that because they have certain rights they can escape certain duties. That is not the principle of true democracy, and that is one that the Executive Council cannot subscribe to. There are various other incidental provisions which can, perhaps, best be dealt with during the Committee Stage of this Bill. It is, generally speaking, on the lines of the Resolutions and discussions that have taken place up to this. It is proposed to take power under the Bill to permit of the exemption of certain securities from taxation. That is in contemplation at the present moment. These securities are in the nature of the Savings Certificates that have already been taken up—at least a security of much the same kind has been taken up in England and in the area of the Northern Parliament. It affords persons who are unable to purchase big blocks of securities an opportunity of lending money to the State. A certain sum of this money is paid now, and in, say, five years time a certain lump sum is paid. The power that is proposed to be taken here will exempt the difference between the two sums from Income Tax. I do not think there is any necessity to labour the matter any further, and I formally move the Second Reading of the Finance Bill.
