asked the Minister for Finance when the proposed commission on taxation will be set up; the names of the proposed members; and its terms of reference.
Ceisteanna—Questions. Oral Answers. - Taxation Commission.
12.
I would refer the Deputy to my announcement of 28 March which gives the names of the members of the commission and the terms of reference. The commission held its first meeting on 14 April.
Is it correct to say that the commission's terms of reference include a request from the Government for an early report on the question of taxation of banking profits and would he give the House some more details?
The terms of reference as such do not include a request. The terms of reference, which are deliberately broad for reasons I stated yesterday and previously, at the same time include provisions for interim reports on such matters as the commission consider desirable or as may be referred to them by the Minister for Finance for specific consideration. In the event, at the inaugural meeting of the commission yesterday I did refer the question of profits and tax on profits of the financial institutions and others to them for urgent consideration for interim reports.
What is the Minister's definition of urgent? Would the Minister explain why he needs the Commission on Taxation to tell him about the level of bank profits and the incredibly low level of taxation which applies to these profits?
It is a matter in the first instance for the commission to interpret the wishes of the Minister for Finance and the Government when the Minister makes a specific request to them at their inaugural meeting for urgent consideration for an interim report. Beyond that, I could not bind the commission to a time scale in respect of any interim programme. As regards the second part of the Deputy's question—why this is needed—the Government themselves have been conducting an examination of this area but that should not preclude the commission from looking at this matter in the context of their overall examination. Otherwise, I would be limiting the commission in the scope of the examination they have been asked to undertake.
Would the Minister not agree that anybody who reads the newspapers can tell that at a time when the common rate of tax is 35 per cent the effective rate of tax on bank profits is, as often as not, in single figures?
I do not think that the Deputy should——
Sorry, may I ask the Minister if he stated that the commission's terms of reference included an examination of the ownership and distribution of wealth and incomes?
No. The terms of reference were published some time ago and probably the Deputy will be aware of this.
Would their terms of reference exclude such an examination?
The next question refers to the matter the Deputy is pursuing.
No, it does not.
If the Deputy looks at the terms of reference—they are so brief that perhaps I might——
What I am asking the Minister is: would they exclude such an examination?
Although this is not included specifically in the terms of reference, if the commission feel that this would somehow be a matter of background to the implementation of their terms of reference, it is a matter for them.
The Minister will agree that it would be quite within their competence to conduct such an inquiry?
It is not for me to say how they would interpret their terms of reference.