JOINT COMMITTEE ON FINANCE AND THE PUBLIC SERVICE debate -
Wednesday, 16 Apr 2003

Vol. 1 No. 6

Redress for Taxpayers: Ombudsman’s Report.

Chairman

The next item on the agenda is the draft report on the Ombudsman's special report, Redress for Taxpayers, which we concluded weeks ago but because of the legislation before the select committee did not get around to ratifying in order that it could be laid before the Houses of the Oireachtas. Members will be satisfied that the Ombudsman and representatives of the Revenue Commissioners appeared before the committee on 12 February when we got their responses. There have been further developments since. The issues which the Ombudsman requested to be addressed were fully addressed by the Minister for Finance on Report Stage of the Finance Bill 2003, subsequent to which the Ombudsman wrote to thank the committee for its support and acknowledge the fact that the contents of his report had been satisfactorily implemented. Is it agreed that we formally lay the draft report before the Houses of the Oireachtas? Agreed.

I do not have a draft work programme today. We must check the legislative programme before us and will finalise a programme at the next meeting. The Houses of the Oireachtas Commission Bill has been referred to the committee.

Deputy R. Bruton

I did not get a chance to read everything in the Ombudsman's report. I note you are saying the committee, at its joint meeting, "discussed and acknowledged fully their support for the Government amendment on Report Stage of the Finance Bill". You will recall that there was some debate on that amendment and while we acknowledge that it met the immediate problem brought to the surface by the Ombudsman, there was some concern, which I expressed, about two matters, the first of which was the restriction of look-back to just four years from the previous figure of six. I also alerted the Dáil to the possibility that cases would arise that would be similar to those mentioned in the Ombudsman's report and which had not yet come to light but which would have preceded the Finance Bill 2003. Cases could be thrown up about which the Ombudsman could, again, be making recommendations to us and for which there is now no legislative protection. We have not resolved cases which remain to be uncovered. The ex gratia payment is confined to the ones listed. You are perhaps generous in your praise of the solution which is adequate unto the day but there are certain qualifications which some members of the committee might express.

Chairman

I acknowledge what the Deputy is saying. I was present when he said what he had to say on Report Stage. When I was drafting this report, I may have skimped a little but will elaborate now. The Minister made it clear that he was doing this on the basis that it was an exceptional case leading to the Ombudsman's recommendation in his first ever report laid before the Dáil. He was going down this road solely on that basis. He did not want to open the door to other cases which might or might not arise. I stayed away from issues which might arise or which had not yet come to light and drafted the report strictly on the basis and cases presented by the Ombudsman. If another problem comes to light, that will be another day's work. It was not part of the Ombudsman's report. We dealt fully with his report. I did not want to stray into areas not included in it.

Deputy R. Bruton

I accept that. However, the Ombudsman said that where an underpayment resulted from maladministration by the Revenue Commissioners, the principle was that the full benefit of the payback should be afforded. That is not the law of the land as of today. At the very minimum this should be noted by the committee. We should note, however, that we do not rule out the possibility of the committee having to return to this issue in the event of other cases coming to the notice of the Ombudsman, which is not to criticise the Minister for Finance. According to his lights, he has done a good job in acknowledging this but we should acknowledge that there are lingering concerns, although they may not come to anything.

Chairman

I understand what the Deputy is saying. However, in the draft report which deals with the Ombudsman's report how do we deal with those issues? What the Deputy has referred to is not included in the Ombudsman's report. The draft report strictly deals with his report, not with issues that might be in a future Ombudsman's report. That is the reason I came down on the side of not including other matters which might arise.

Deputy Ó Caoláin

The committee recommended that the Ombudsman's report of November 2000, Redress for Taxpayers, on the refusal to make full refunds of income tax to two widows and compensate taxpayers when refunds are wrongly delayed, be implemented in full. That was the conclusion of the committee's deliberations.

Chairman

That is what happened.

Deputy Ó Caoláin

The Ombudsman has acknowledged this.

Chairman

The final paragraph of his letter to the committee stated that the time which the committee gave to his report was crucial in securing justice for the people involved and that he was extremely impressed by our work which had demonstrated the power of effective parliamentary scrutiny. He also wished us well in our future endeavours. I would be happier if we stuck precisely to the report and did not stray into areas not included.

Deputy Ó Caoláin

It was in that context that I recommended we accept it.

Chairman

Can we agree to the draft report on the Ombudsman's report?

Deputy R. Bruton

What does No. 4 of the Ombudsman's recommendations mean?

Chairman

I do not know.

Deputy R. Bruton

It holds out the prospect that other cases will come under investigation. I am happy to append a note stating the committee recognises that other such cases may come to light and may need to be looked at afresh. We have debated the four years versus six years issue but the argument has not been accepted by the Government. The committee may wish to pass over the matter in silence. At the very least, we should advert to the fact that some members, if we wish to record it as a minority view, acknowledge that other cases may subsequently come to light and that we may need to look again at the ex gratia mechanism.

Deputy Ó Caoláin

Is the Deputy proposing that we amend the text as presented or is he happy to have it noted in a minute on today's considerations?

Deputy R. Bruton

I am happy to have it noted.

Deputy Ó Caoláin

I will accept the latter. It is something on which we can all agree.

Chairman

The report as presented can now be laid before the Houses of the Oireachtas. We will note the points made in the minutes on today's meeting.