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Dáil Éireann debate -
Tuesday, 21 Jun 1960

Vol. 183 No. 1

Committee on Finance. - Finance Bill, 1960—Money Resolution.

I move:—

That for the purpose of any Act of the present session to charge and impose certain duties of customs and inland revenue (including excise), to amend the law relating to customs and inland revenue (including excise) and to make further provisions in connection with finance, it is expedient to authorise as follows:

(a) to redeem borrowings, and interest thereon, in respect of capital services, there shall be charged annually on the Central Fund or the growing produce thereof a sum of £991,095 in the twenty-nine successive financial years and a sum of £951,035 in the thirty successive financial years commencing in each case with the financial year ending on the 31st day of March, 1961, and

(b) relief may, where necessary, be given by way of repayment in relation to any section of the said Act which provides for considering, for the purposes of any duties, a person to be the child of a married couple born to them in lawful wedlock and not to be the child of any other person.

This Resolution will not give so much trouble. There are two points which must be borne in mind in relation to it. First of all, paragraph (a) is necessary because of the charge on public funds under Section 7, and paragraph (b) is necessary under Section 38 of the Bill which provides for repayment of duty where duty has already been paid. This, as it were, is the adoption clause which, if agreed to by the Oireachtas, will mean in some cases that application can be made for the refund of succession, legacy, or stamp duty and, in some cases, even of customs duty. A person who is left a legacy outside the country, which includes goods that have been brought in from outside, is liable to a different rate of duty because of the relationship he has to the deceased person.

I do not propose to raise any point in relation to the Resolution itself, but this is a general Resolution for the whole Bill so it is relevant to discuss the size of the bill which we will be asked to consider. The effect is to raise taxation for the purpose of meeting a bill, excluding the Road Fund payments, of £130 million. If one takes in the Road Fund payments as well, the total bill is over £136 million.

I seem to remember Deputies on the other side of the House saying not so very long ago that under no circumstances whatever must the amount that must be expended from public moneys be allowed to increase. Look at the figures. At that time the amount that was being paid out, and which can now be compared with £130 million, was £114½ million. This Bill represents £15½ million more of broken promises that we are now facing. When one considers the size of the bill that the Minister for Finance is introducing here now, it is not surprising that he adverted purely to the last two particular instances of the Money Resolutions rather than to the General Resolution and its purposes. It seems to me that the hope is that if one slides quickly over the amount that is involved people will not understand and will not appreciate how much is being extracted from them.

It does not require very great calculation to work out what £130,000,000 is per head for 3,000,000 people. To put it another way, in 1956-57, the amount that was expended on Central Fund Services was £17,351,000 and on non-capital supply services £97,220,000, which makes a total of £114,571,000. In the current year the Minister after deducting Road Fund payments and the allowance that he has made for arrears of estimation is looking for £130,633,000. That is £16,000,000—I said £15,500,000 but it is actually £16,000,000—more that he is looking for in this year to meet the cost of the various services. The costs of those services have gone up by £16,000,00.

Let me say at once in case the Minister might think that I was playing on any factor about levies and capital purposes that I deliberately did not take receipts; I took expenditure. An expenditure of £16,000,000 more this year for 3,000,000 people is something over £5 a head, man, woman and child, more that the people are having collected out of their pockets for the privilege of having a Fianna Fáil Government in these three years. That is bad enough but when one considers it against the background of the speeches that were made in 1956 and the early part of 1957 and remembers that we have had nothing from any Minister since apologising for the manner in which they misled the people at that time, it makes it far worse.

I should like to know from the Minister today whether the taxpayers can expect any possibility of the total bill doing anything other than rise year after year. It has risen steadily and it has now got to the point where it is at £130,000,00 for a small country of 3,000,000 people. Where is it going to end? When are we going to reach the situation that we will be able to look hopefully? Everybody knows it is not merely the general taxpayer's burden that is increasing year after year here but that local authorities are finding exactly the same thing, that local authority rates are going up. When one is considering the burden of taxation it is appropriate to consider not merely the burden of Central Government taxation but the burden of local government taxation. Local government taxation has gone up by almost £1 per head in the last three years. It means that there is an increase in total taxation of £6 a head in three years. I do not think that is something with which any Minister should be satisfied.

I do not know if I would be in order in answering the Deputy because this Resolution is a Money Resolution. It is dealing only with money taken from the Exchequer, authorising me to pay from the Exchequer under the two items referred to here which I have already mentioned.

The Minister understands it so well that he would be out of order. I misunderstood it, so I thought I was in order.

I do not want to interfere with the ruling of the Chair. Financial Resolutions deal with what the Deputy has been speaking about, that is, raising of taxation. I am quite sure that I have never expressed the opinion that we could carry on on the same level of income that we have always had. We have in the past, I know, expressed the opinion very, very emphatically that the country cannot bear a further level of taxation and, taking it by and large, in the last three or four years, while we have reduced some taxes and increased others, taxes have remained more or less as they were. It is obvious that we have to meet increasing costs for debt and in the way of remuneration and as long as our national income can give us more income from the present taxation there is no Minister for Finance who can afford to say that he can do without that as time goes on.

Question put and agreed to.
Resolution reported and agreed to.
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