I remind Members that the Minister has two minutes for his first reply and Members and the Minister have one minute each for supplementary questions.
Other Questions. - Deposit Interest Retention Tax.
Michael Ferris
Question:9 Mr. Ferris asked the Minister for Finance the proposals, if any, he has in respect of the use of moneys recovered from financial institutions and others by way of arrears of deposit interest retention tax; and if he will make a statement on the matter. [22700/99]
The administration and collection of deposit interest retention tax is a matter for the Revenue Commissioners in accordance with law. Deposit interest retention tax collected by the Revenue Commissioners from financial institutions is paid into the Exchequer and will be considered in the context of the Government's budgetary objectives.
Notwithstanding that the committee has not yet reported, it has been established beyond reasonable doubt that there are arrears of deposit interest retention tax still outstanding. Can the Minister confirm that measures are being taken to recover the arrears and outline those measures?
The question refers to the use of the money that is recovered, not the method of recovery. The Deputy should bear that in mind.
I could answer by saying it is a separate question, a well known device of Ministers in previous years. I can confirm that the Revenue Commissioners have initiated a programme of audits of financial institutions to assess these liabilities. The audits will cover the 37 relevant financial institutions.
Are the audits proceeding independently of consideration by the Committee of Public Accounts of the evidence it heard in preparation for its report? Will there be a separate channel of information through the Minister whereby he will communicate the result of the audits to the House?
The Revenue Commissioners were well represented at the Committee of Public Accounts hearings—
The hearings are over.
I am sure the information that came to light in the hearings will be taken into account by the auditors of the Revenue Commissioners in fulfilling their task. The Deputy will recall that I recently authorised a number of additional high level staff for the Revenue Commissioners to progress these and other matters. The Revenue Commissioners will not finalise their negotiations with the relevant financial institutions until they have all the information which, I am sure, will include the findings of the Committee of Public Accounts.
(Dublin West): In view of the fact that the arrears arose as a result of powerful banks conniving with certain groups to defraud the tax system through deposit interest retention tax, does the Minister agree that the amount of the arrears puts in a wholly invidious position those senior politicians and political parties who got generous funding from the banks either through donations to their parties or debt write-offs?
The Deputy is widening the scope of the question, which is about the use of moneys. He should be relevant to the question.
(Dublin West): I am relevant. The Minister will understand that many ordinary people believe there is a connection between the funding that parties got and tax write-offs or non-collection of tax. Does he agree that those political parties have a moral obligation to pay some of the funding they got as arrears in DIRT?
That is not relevant to the question under discussion.
(Dublin West): The first part of it was.
The Minister referred to audits of financial institutions by the Revenue Commissioners. Are the credit unions included in the institutions which are being audited for non-payment of DIRT?
No. Credit unions are not being audited in this context. Deputy Higgins does not want to refer to this question, which is a jibe at his former colleagues in the Labour Party.
(Dublin West): They were all in it together.