Vol. 518 No. 1
57 Mr. Naughten asked the Minister for Arts, Heritage Gaeltacht and the Islands if she has decided to scrap the proposal to introduce a special PAYE allowance for islanders; if not, the way in which and when she expects to introduce the scheme; and if she will make a statement on the matter. [10931/00]
The question of a special tax allowance for islanders is basically a budgetary issue on which a final decision was to be made, one way or the other, in the context of the most recent budget. The Deputy will be aware that such an allowance was not introduced in that budget, and I do not propose to pursue the matter further at this stage. The ongoing and very substantial reform of the tax system, including lowering taxes has reduced the impact that such an approach would have. However, my Department will continue to assist in every other way possible to reduce the cost of living for island communities. The Minister of Social, Community and Family Affairs has informed me re the islander allowance that he has asked his officials to undertake a full robust analysis of the range of issues involved in order that the matter can be reconsidered in the course of this year.
