asked the Minister for Social Welfare his views on the taxation of short-term social welfare benefits.
Ceisteanna—Questions. Oral Answers. - Social Welfare Benefit Taxation.
8.
The question of taxing short-term social welfare benefits raises many issues both of a policy and of a practical nature. I do not propose to comment on the question of taxation policy.
On the practical side however I can say that there are many difficulties in relation to the structure of the schemes and the method of their administration which would make it impractical to tax short-term benefits at the present time.
Will the Minister agree that his response is not acceptable and does not conform to the question I tabled, to ask the Minister for Social Welfare his views on the taxation of social welfare benefits? The reply I received was to the effect that the Minister does not propose to comment on the policy. I asked the Minister for Social Welfare if he has views on this subject, does he intend to make an approach to the Minister for Finance whose job it is to deal with this area and for his views on this issue which has been aired in the media recently? There is not much point in tabling a question asking the Minister to give his views on the matter if his response is that he will not give his views.
In the course of my reply I dealt with the practicality of taxing short-term benefits.
What about the policy?
I do not propose to comment on the question of taxation policy because it is part of the overall taxation policy. The Minister for Social Welfare is responsible for the administration of social welfare policy and not taxation policy. As far as taxation affects social welfare policy and administration, the reply stated that there are practical difficulties in the implementation of any type of taxation on social welfare payments. That being the case, whether one expresses other opinions on the taxation or not, I do not think they are all that relevant. It is just not practical at present to carry out any policy in relation to the taxation of short-term social welfare payments.
Is the Minister telling the House that it is the view of the Minister for Social Welfare that it would not be practical to tax short-term social welfare benefits?
The view at present is that it is not practical to do so for a number of reasons.
Does that mean that the Minister wishes to do so?
Not necessarily so. It does not arise. I should like to remind the Deputy that the question of taxation of short-term social welfare payments arose in the Finance Act, 1979, but it was not implemented. It was repealed in the 1980 Act. If the Deputy investigated this he would find that the reasons given then are the same as those I have given today.
Do I take it from the Minister's reply that he is in favour of taxing short-term social welfare benefits but that it is not practical to do so? Can we also take it from the Minister's reply that because it is not a matter for the Minister for Social Welfare to decide on taxation that this will not be discussed by the commission on social welfare that is sitting at present?
I do not think the Deputy can assume any of those things because they have not been given in my reply to his question. The Deputy would be wrong in assuming that that is the present position.
How about the Commission on Social Welfare?
Question No. 9.