Vol. 437 No. 3
1 Mr. R. Bruton asked the Taoiseach if his attention has been drawn to the provisional findings of the Task Force on the Service Sector; and if its recommendations will be published in advance of the 1994 budget so that the necessary tax reforms can be made in 1994.
I am pleased to inform the Deputy that the Task Force on Jobs in Services has now completed its report and presented it to me. The report which was considered at Government yesterday has been placed in the Oireachtas Library. The report contains recommendations as regards organisational changes — within Departments and agencies; changes in incentives — grant and equity support, and taxation measures; and proposed measures specific to particular service activities.
In accordance with its terms of reference the task force identified measures for implementation in the short term and those requiring further study. All of the recommendations will be borne in mind in the formulation of the 1994 budget. However, the Deputy will see from the report that, in relation to the more fundamental taxation options, the task force has highlighted the need for further in-depth evaluation bearing in mind, in particular, the taxation position of services in Ireland relative to other countries. Those options need to be examined from the standpoint of cost-effectiveness in terms of job creation. I do not believe it will be possible to undertake the valuation required before the 1994 budget.
I decided to publish the task force's report at this stage to allow for a full examination of the complex issues it covers. After the normal process of consultation with Government Departments, individual proposals formulated in response to the task force's recommendations will be put to Government for decision.
I welcome the publication of the report. Fine Gael first advocated equal treatment for the service sector two years ago and I welcome the fact that this report endorses much of our policy. Will the Minister of State inform the House whether the Government has accepted in principle that the service sector should have equal access to Government support for appropriate activities? While recognising that some of the corporation tax proposals require further study, will he accept that the proposal in relation to reducing PRSI for persons earning under £10,000 per annum, which is advocated for the service sector, could be considered specifically for the 1994 budget?
The Deputy is injecting new matter into the question.
No, Sir, it is referred to in the reply.
Perhaps, but I would have preferred a distinct question on the matter.
The Government accepts a number of the recommendations and the general thrust of the report. The report came before the Government yesterday and was considered, but I am unable to give the Deputy any assurances in regard to specific proposals relating to taxation. He will appreciate that such matters may be dealt with only in the budget and by the Minister for Finance.
Will it be possible at a future Question Time to question on a more detailed basis the Government's approach to this important policy paper? Will the Minister of State indicate a deadline approach to the matter so that it can be teased out on the floor of this House?
Obviously I cannot indicate a timetable, but I will arrange for a communication to be issued to the Deputy on the matter. The views of any Member of the House on this document would be gratefully received and considered by the Taoiseach. I will leave the offer open to the Deputy if he wishes to come back to me on the matter.
Question No. 2 in the name of Deputy Jim Higgins, has been withdrawn.
