asked the Minister for Finance whether, having regard to the recent report that capital gains on the Irish Stock Exchange during 1972 have amounted to £200 million and to the fact that the total earnings of workers in manufacturing industry are no more than £225 million, it is now proposed to introduce a capital gains tax in the interests of social justice.
Ceisteanna—Questions. Oral Answers. - Capital Gains Tax.
33.
The Deputy is, I assume, referring to a newspaper article in which it was alleged that, this year, the owners of Irish shares had made a collective tax-free capital gain of over £200 million. The article went on, however, to say that this gain had not been realised but that it was in fact only a paper profit which would disappear if everyone tried to cash in at the one time. Furthermore, if a capital gains tax were in force, it would apply only to realised gains and then only to that portion of those gains attributable to the period subsequent to the introduction of the tax.
The general question of introducing a capital gains tax or some other form of wealth taxation in addition to the existing death duties is a matter for consideration in the context of the taxation system as a whole which is the subject of continuing review.
Does the Minister appreciate that, while the individuals concerned may not have realised their gains, they most certainly have accumulated them? Their bank managers will be quite appreciative of the fact that the so-called paper profits he referred to will be of considerable benefit to them as individuals, in the short or the long term. In the circumstances, would the Minister not now accept that the demand from the Labour Party, which has been repeated in this House ad nauseam since 1965, for the introduction of a capital gains tax, is justified in the light of the major capital accumulation——
The Deputy may not make a long speech on this question.
I assure the Ceann Comhairle that it is worthy of a special debate, not just a speech.
There are 400 questions worthy of reply too on the Order Paper.
Would the Minister not, therefore, introduce this necessary form of capital wealth taxation?
I assume that the Deputy, like myself, is not one of the recipients of these capital gains.
No.
I also assume that he would not be aware of the fact that, if the recipient of one of these gains went to his bank manager and endeavoured to raise an equivalent amount of money, he would get very short shrift.
He might go to Tony O'Reilly or Nicholas Leonard.
If he did he would probably get even shorter shrift.
Can the Minister say whether the material of this question has been referred to that well-known Fianna Fáil group, the trade union committee? Has it been referred for study to these merchants, these heralds of social justice?
May I ask the Minister whether his reference to the possibility of introducing a wealth or capital gains tax in addition to existing estate duties was intended to exclude the possibility of substituting a wealth tax for existing estate duties in view of the criticism of the estate duty system?
I think the Deputy could take that as being the implication. With regard to Deputy O'Leary's question I am rather surprised that a member of a party such as his should be so little impressed by the activities of the Fianna Fáil Party committee who seem to me, I must say, to be far more effective than the whole of his party put together.
(Interruptions.)
Question No. 34.
I will pay close attention to any movement for social justice within the Minister's party. I am interested in the activities of this trade union committee. Could I ask the Minister, whose addiction to social justice is well known, whether he has referred this matter to the trade union committee composed of the biggest pack of millionaires in the country?
There can be no doubt that, arising out of this question and the reply, at least some Deputies will be able to face their bank managers tomorrow with greater fortitude than they could this morning.