Dáil Éireann debate -
Wednesday, 7 Jun 1967

Vol. 229 No. 1

Committee on Finance. - Finance Bill, 1967: Money Resolution.

Minister for Finance (Mr. Haughey)

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 £1,788,105 in the twentynine successive financial years and a sum of £1,880,083 in the thirty successive financial years commencing in each case with the financial year ending on the 31st day of March, 1968;

(b) in relation to corporation profits tax, there shall be given by way of repayment any such reliefs in cases of error or mistake as may be appropriate in accordance with any section of the said Act providing for such reliefs.

Mr. Sweetman

Can the Minister explain how exactly these two figures are computed in this Resolution?

Mr. Haughey

The amounts are computed by reference to the actual expenditure on Voted Capital Services in 1966-67 in the first case and the estimated expenditure in 1967-68 in the second case. They are intended to adjust the provisional annuity fixed for 30 years last year and to give the new provisional annuity for 30 years for this year.

Mr. Sweetman

These are the amounts for the interest and sinking fund.

Mr. Haughey

The annuities.

Mr. Sweetman

On the Resolution itself, I must say I am disappointed that the Minister in the framework of this Finance Bill has not done more to accord with European taxation, and particularly taxation in the EEC. It is a pity that he did not take advantage of the reasonably short Finance Bill to make some move to iron out some of the points that could be made clear here. Perhaps the Minister intends to deal with this in the Finance Bill which he gave notice he would introduce this session for consideration in the autumn. It may well be that he intends to deal with more than the mere repeal of Part VII of the Finance Act, 1965, and the substitution of the appropriate new legislation for it. I will not say any more until the Minister has had an opportunity to make the case, if he wishes, that he will deal with it then.

I had hoped, too, that on the Money Resolution, or at some stage of this Finance Bill—and I would have thought that the Money Resolution would be more appropriate—he would have given us some indication of when we can expect the text of the new Bill and what it will contain other than the broad general principle that has already been announced about the repeal or variation of Part VII of the 1965 Act. Perhaps the Minister could give us some outline at this stage because at present there is great uncertainty among the business community at large, and until that uncertainty is dispelled by a firm announcement, it is not going to be too easy for business people to plan their affairs properly.

Mr. Haughey

I am afraid I cannot do any more at this stage than repeat what I have already said, that the provisions of the Miscellaneous Provisions Bill which will be introduced in the autumn will be in the main relieving provisions. In so far as they are reliefs they will be retrospective, as already indicated. The purpose will be to remove from the scope of the existing section a number of items which might be regarded as not having been intended to be caught by it in the first instance.

Mr. Sweetman

The Money Resolution is also the Resolution that deals with the general collection of taxes. It seems to me, therefore, it would be appropriate to raise on it a matter affecting one aspect of our tax structure very vitally, because there is no section in Part II of the Bill dealing with taxation on hydrocarbon oils. Therefore, the Minister should on this Money Resolution give some indication to the House of the position in relation to the supply of oil in the present deplorable circumstances in the Middle East. Any interruption in the flow of oil, petrol or heavy oil would have a very serious effect on revenue. Therefore, this Money Resolution is the appropriate occasion to deal with our needs. The effect on industry generally is something of which people must be apprehensive. I trust that the Government have taken appropriate steps to ensure that the supply will be assured; that, in addition to the supply for the Whitegate Refinery and so for industry generally being assured, the Government have taken appropriate steps to make certain that industry will get the supplies so very vital for the employment and livelihood of so many of our people. I think the Minister might indicate what those steps are.

Mr. Haughey

This is really a matter for my colleague, the Minister for Transport and Power, who has the situation under very close scrutiny and careful review. I understand that at the moment there is no need for anxiety.

Mr. James Tully

Does the Minister not agree this is an example of where we are rushing too quickly to change over from native fuel to imported fuel? Is this not another warning to us that we should try to rely as much as possible on native fuel, even if it costs a little more? The Minister is not the Minister responsible and I am not holding him personally responsible for it.

Question put and agreed to.

Resolution reported and agreed to.