asked the Minister for Finance whether his attention has been directed to a statement by the secretary of his Department which appeared in a daily newspaper on 4th November, 1952, to the effect that in the Budget for the current financial year revenue from tobacco duties has been estimated at £22,515,000 but had not reached £10,478,000 for the first six months of the year, that revenue from duties on spirits and on motor car parts which were expected to produce respectively in a full year £7,500,000 and £1,050,000 had produced only £2,679,000 and £453,000 in the half-year, and, further, that revenue from spirits showed no signs of recovery due to declining consumption which appeared to be permanent and that it was manifest that the point of diminishing returns on taxation rates had been reached; and, if so, if he will consider the introduction of proposals for legislation to repeal the increases in taxation contained in this year's Budget in order to improve the country's economy.
Ceisteanna—Questions. Oral Answers. - Budget Estimates.
asked the Minister for Finance if, in view of the recent statement by the secretary of his Department that the taxes imposed by the last Budget would fall in their yields short of the estimates framed in April and that expenditure would greatly exceed the Budget estimate, he will give revised estimates for revenue and expenditure in the current financial year.
asked the Minister for Finance if he will state, in view of the recent statement by the secretary of his Department that current expenditure would greatly exceed the Budget estimate and that the taxes imposed by the last Budget would fall in their yields short of the estimates framed in April, if he expects that there will be a Budget deficit in the current financial year; and, if so, whether he intends to borrow to meet this deficit or to raise additional taxation.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 13, 14 and 15 together.
I am aware of the statements referred to which were to the effect that, on the basis of experience for the first half of the financial year, it was feared that there would be a substantial shortfall in revenue as compared with budgetary expectations, while, on the other hand, current expenditure seemed likely to be considerably in excess of the Budget estimates. It was pointed out that predictions at this time of the year were necessarily fallible and that the prospective shortfall in revenue might be reduced by a recovery in consumption. It was also pointed out, however, that, even on the unlikely assumption that both revenue and expenditure proved exactly to correspond with the Budget provisions, there would be no surplus in the Exchequer to meet additional payments.
I have nothing to add to these statements except to say that they provide no basis for the general inference which Deputy Donnellan seeks to draw from them regarding taxation rates.
I have already stated, in reply to a question by Deputy Briscoe on 30th October, 1952, that there is no intention of introducing a Supplementary Budget.
In view of the position in regard to current revenue and expenditure, I trust that the Deputies who have asked these questions and their colleagues will now realise how unfounded were the allegations of the Leader of the Opposition and Deputy McGilligan who with others occupied hours of parliamentary time in contending that the Budget contained, in Deputy Costello's words—
"proposals which will, in effect, result in raising from the already overburdened taxpayers of this country a sum of from £9,000,000 to £10,000,000 unnecessary taxation" (Dáil Debates, Volume 130, No. 9, column 1269, 3rd April, 1952).
Arising out of the Minister's reply, would not one think that he would answer the question he was asked and not mind referring to something else? I would like to ask the Minister to tell us the reason why he expects a recovery in the next six months. Secondly, I want to refer him to Question No. 13 where the secretary of his Department is reported as saying:—
"that revenue from spirits showed no signs of recovery due to declining consumption which appeared to be permanent and that it was manifest that the point of diminishing returns from taxation rates had been reached."
I would like the Minister to explain that.
I can only answer the Deputy by saying that I repose my hopes in a providence which is kinder to the more meritorious among us than the Deputy would appear to be.
It is damn all.