I move:
That Dáil Éireann takes note of excise duty increases imposed by the Imposition of Duties (No. 259) (Excise Duties) Order, 1982 and the Imposition of Duties (No. 260) (Excise Duty on Video Players) Order, 1982, copies of which orders were laid before Dáil Éireann on 12 March, 1982.
The effect of these Imposition of Duties Orders is to increase the tax element in certain goods liable to excise duty with effect from 13 March.
The list of tax increases, including VAT at 15 per cent where appropriate, is as follows:
4p per pint of beer;
6p per glass of spirits, or 3p on the normal half-glass measure;
30p per bottle of table wine, with pro rata increases for stronger wines;
6p per gallon excise on cider and perry, with pro rata increases for stronger cider and perry;
10p per packet of 20 cigarettes in the most popular price category, with pro rata increases for cigars and tobacco;
excise duty increased from 50 per cent to 60 per cent for cars over 16 hp;
£17 excise duty on large colour television sets, pro rata increase for other sets;
the full rate of duty on gaming machines increased to £150 per machine, with the weekend rate increased to £100 per machine;
the rate of duty for special exemption orders, club extensions etc. was increased to £50 for orders issued in respect of functions on or after 1 July 1982;
a new excise duty of £20 per player was introduced on video players.
These tax changes formed part of the budget proposals which were put forward during the election campaign. In the interest of minimising the revenue lost by the delay in implementing the budget, the Government, on taking office, decided that these changes should be brought into effect as soon as possible, rather than waiting until today. The extra tax yield in 1982 resulting from this course of action is estimated at about £2½ million.
The taxes were imposed by means of orders under the Imposition of Duties Act. This Act was passed unanimously by this House in 1957 and it gave clear powers to the Government to act in this way, subject to confirmation of the changes in legislation by the end of the following year. In fact, we propose to include the excise duty changes in the forthcoming Finance Bill rather than wait for the period which the Act allows.
The Imposition of Duties Act does not provide for a debate in the House for orders of this type. However, since increases of this nature would normally come before the House on budget day by way of financial resolutions, the Government considered it desirable that the House should be given the opportunity to debate the increases today.
I might contrast the procedure which we have followed with that followed by the Coalition Government in December 1974, when they used the provisions of this Act to increase petrol prices by 30 per cent, involving an increase of almost two-thirds in the tax content of a gallon of petrol. This increase, you will note, was far greater than any of the measures included in our orders. Yet the Government at that time did not offer a debate and a vote on the measure in this House at all. A statement was made to the House by the then Minister for Finance and no debate was allowed. It was only when we put down a motion demanding the withdrawal of the increases that time for a debate was given.
There is no need for me to dwell on the reasons for these tax increases. There is agreement on both sides of the House that the level of Government borrowing must be reduced and it is appropriate in these circumstances that less essential expenditures such as alcoholic drinks, tobacco, televisions and videos should be asked to make a greater contribution. I am aware of the difficulties being faced at present by the drinks industry in particular. The level of tax increase imposed in this area was kept to the minimum for this reason. I will be glad to give the House any further information sought on the increases and to reply to any points raised in the debate.
