asked the Minister for Finance if his attention has been drawn to a newspaper article (details supplied) concerning the principal value of property passing on death; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Estate Duty.
7.
The main point made in the article is that difficulties can arise when share values fall between the date of a person's death and the date of payment of estate duty. The difficulties referred to are, of course, not new, and as the Deputy will appreciate they could on a rising market operate in the opposite direction so far as the Exchequer is concerned. I do not accept that delays in the Estate Duty Branch are responsible for, or contribute in any significant way to, the problem. Since August, 1973 a new system was introduced whereby Inland Revenue affidavits are assessed provisionally on presentation. I am, however, having all aspects of the matter examined as sympathetically as possible to see how cases of undoubted hardship can best be dealt with. I might add that the replacement of death duties with other forms of capital taxation will lessen the possibility of the difficulties referred to in the future.
The Minister will presumably appreciate that the elimination of death duties will not affect the hardships which have arisen in cases already or that may arise up to April next and since he appears to me to have accepted that there have been cases of hardship and I know, and I presume he does, that there have been cases of extreme hardship, could the Minister be a little bit more specific as to what he proposes to do having regard to the fact that it would appear on the face of it that to do anything about it might require some statutory change?
I cannot be any more specific than to say that we are going to get rid of the whole wretched system of death duties that has given rise to these complaints, to these hardships, to these delays, to these impositions on family fortunes and nothing could be more effective or of greater relief to people than to get rid of this iniquitous system which ought to have been got rid of long ago.
I should like to point out to the Minister that the cases to which I am referring—I have already said this—arise under the estate duty system so to talk about abolition of estate duty does not answer the question. Is the Minister aware that the real difficulty has arisen because of what has happened the economic situation and the catastrophic fall in the value of property, particularly shares, and that is why the position has become so acute? It is no answer to talk about the abolition of estate duty. Is the Minister saying that he will do something about the cases that have arisen under the estate duty system? If so, what does he propose to do?
What I propose to do is to get rid of all the hardship that was caused by Fianna Fáil ignoring this problem for so long. The difficulty to which Deputy Colley has drawn attention would not have arisen if death duties were abolished, as they ought to have been long ago. Furthermore, I should like to point out that, notwithstanding the falling stock market, people who have certain Government securities are in the position to surrender those at par and so receive in payment of estate duty concessions and arrangements which are far above the value of the stock on the day on which the person died.
I do not wish to confuse issues here by going into technicalities but I think the Minister in his original reply referred to cases of undoubted hardship. Is he going to do anything about those cases of undoubted hardship? Could he say "yes" or "no" to that?
I am saying we are abolishing death duties and that is the most effective way of dealing with the problem. We are not answerable for Fianna Fáil's mistakes and failure to adjust the whole capital taxation system.
Does the Minister accept responsibility for the administration of the law under his jurisdiction as Minister for Finance and the consequences which arise from the economic situation which now exists under his jurisdiction? If he does accept responsibility, would he acknowledge that to talk about abolishing estate duty is no answer to the cases of undoubted hardship to which he has referred? If he does not propose to do anything, would he say so?
This is becoming a debate now.
I have said very clearly that we are not answerable for Fianna Fáil's mistakes.
Question No. 8.
Therefore the Minister is not going to do anything about cases of undoubted hardship?
We are getting rid of the system which led to the hardships that Fianna Fáil ignored.
The Minister is not going to do anything about the cases of undoubted hardship?
We are getting rid of the system. There will be no more victims.
The Minister is not doing anything about the cases of undoubted hardship?
The Chair has been generous in the amount of time allowed to this question.
I appreciate that, but the Chair surely will appreciate that it has been very difficult to get an answer from the Minister on a specific question. There are undoubted hardships to which he has referred.
A brief question.
I am asking the Minister to say "yes" or "no" in answer to my question as to whether he will do something about those cases, not about other cases?
If Deputy Colley has any conscience in the matter he ought to make good any difficulty or loss that has arisen to the people he ignored for so long.
Am I responsible for the state of the economy under the present Minister for Finance?
This is developing into an argument.
The problem did not arise when I was Minister for Finance.
The Chair is calling the next question.
I am asking the Minister for an answer to my question.
The problems of loss of this kind were inevitable as long as the system of death duties, which Fianna Fáil retained, was retained. We are now getting rid of that system. Fianna Fáil are opposing our efforts to do so.
The Minister has not answered my question.
The Chair has called the next question.
May I give you notice that I should like to raise this matter on the Adjournment if I am in time.
I will communicate with the Deputy in the matter.