asked the Minister for Finance the measures that are contemplated to minimise the tax burden by eliminating circular transfers as indicated in the Government's Green Paper Economic and Social Development 1976-1980.
Ceisteanna—Questions. Oral Answers. - Circular Transfers.
28.
Circular transfers arise when households contribute through general taxation for services or payments of which they themselves are largely the beneficiaries. The rationalisation of existing transfers with the objective of easing the tax burden while at the same time adequately protecting the disadvantaged is obviously an involved process affecting different interests in varying ways. It was for that reason that the Government's Green Paper proposed the question for discussion with the social partners.
As the discussions which the Government had with the social partners subsequent to the publication of the Green Paper necessarily concentrated upon issues having immediate impact upon taxation, expenditure and incomes levels in the short term it has not yet been possible to commence with the social partners the thorough examination visualised in the Green Paper.
Will the Minister confirm that the paragraph in the Green Paper which is headed: "Measures to Minimise the Tax Burden by Eliminating Circular Transfers" was agreed to by all Ministers, including the Tánaiste and his Labour Party colleagues in the Government?
Yes, as a matter which was discussed with the social partners.
Would the Minister agree that the Green Paper does not refer to those matters being matters for discussion with the social partners but rather as measures which might be taken to achieve the objective he has referred to in his original reply?
If the Deputy looks at the two pages previous to the one on which the paragraph he refers to is, he will observe that they are issues which the Government consider proper for discussion with the social partners. I do not have a copy of the Green Paper with me but I believe he will see it at the foot of one of the two pages before the one which contains the other paragraph.
I can help the Minister because I have it in front of me. It all comes under a general heading of "Outline of Proposals to Stimulate Economic Growth". Is it proposed, in an examination of those measures, to include as matters for examination the agricultural grants, school transport, disability benefit and children's allowances?
All matters in which people receive payment and which they contribute towards the cost would fall for consideration in this area. In so far as all taxpayers are contributing towards schemes which are provided by the State it would be appropriate that they would consider such schemes.
Is it intended that the items which the Minister referred to recently will be the subject of examination?
Yes and of discussion and of thought. I hope that people will not find it mind-boggling to be asked to think.
Will the Minister confirm, despite what the Tánaiste has said, that the question of children's allowances in this context will be examined and considered?
There is no conflict between what the Tánaiste has recently and what is contained in the Green Paper.
Is the Minister saying that, if the tripartite talks do not progress any further, those matters will not be examined?
No, that is not so. The talks with the social partners will undoubtedly continue between the Government and the social partners for a long time to come on many issues affecting the economy.
Will the Government examine those matters only if the social partners, to which the Minister refers, agree to continue and also agree to consider those matters?
The Government will examine them and will be anxious to stimulate discussion and a positive response from people so that we may operate public finances in the country to the best advantage of the people themselves, which I have no doubt many sane people want to bring about.
May we take it that the Minister is confirming that it is the intention of the Government to examine with the social partners, or if they fail to do so, the Government themselves intend to examine measures to minimise the tax burden by eliminating circular transfers and to include in that examination the agricultural grant, school transport, disability benefits and children's allowances and that all members of the Government agree with this?
What is in the Green Paper represents the Government's thinking.
I am obliged to the Minister.