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Dáil Éireann díospóireacht -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Ceisteanna – Questions (Resumed). Priority Questions. - Departmental Expenditure.

Joan Burton

Ceist:

139 Ms Burton asked the Minister for Finance his views on the Exchequer figures for the first nine months of 2003; his estimate of the likely budget surplus or deficit for the end of 2003 and the expected tax take by the end of 2003; the way in which these figures compare with the estimates he gave in the last budget; the expected outturn of capital spending at the end of 2003; the way in which this compares with the estimates in the budget; the capital spending projects that will be completed and those that will not; and if he will make a statement on the matter. [21057/03]

The Exchequer returns for the first nine months of the year will be available on Thursday, 2 October 2003. In the meantime, Exchequer figures are available up to and including 31 August 2003. An Exchequer deficit of €892 million was recorded for the first eight months of the year. This compares with a budgeted deficit of €1,869 million for the year as a whole. Based on the available figures, it is estimated that the Exchequer borrowing requirement for 2003 could be up to €500 million higher than forecast at budget time.

The higher forecast deficit is due to the possibility that tax receipts could be up to €500 million lower than the budget day forecast. Total Exchequer tax receipts to the end of August 2003 were €19,093 million compared to €18,523 million for the same period in 2002 equivalent to an increase of 3.1% year on year. This compares with a budget day target of 8% for the year as a whole.

Overall, total Exchequer expenditure is expected to come in broadly on target. The provision for capital spending in 2003 is €5.5 billion. While current indications are that there may be some small underspends in a limited number of Departments, it is too early at this stage to be definitive. Capital expenditure is especially susceptible to timing factors and it normally accelerates in the final quarter of the year. The position regarding capital projects is a matter in the first instance for the Ministers concerned.

Is the Minister concerned by the falls in tax revenue which he highlighted in his reply? In that context, is he aware of the Comptroller and Auditor General's report, published today, in regard to the cost of tax breaks and allowances? Is he concerned that information is only available for 48 of these tax breaks, guesstimates in regard to ten and no information in regard to 33 of them? This is a scandal.

Is the Minister concerned that the report indicates that the 400 wealthiest people in Irish society, some of whom have a tax rate of 5% and others who pay none, got tax breaks worth over €70 million in the year which the Comptroller and Auditor General examined? What does the Minister propose to do given that tax revenues are falling and that, despite his stating he was closing tax loopholes, the Comptroller and Auditor General has indicated areas where further information needs to be sought? There is no cost information in regard to 33 tax breaks, which include the exemptions in regard to stallions, seaside resorts and—

The Deputy is wandering well outside the parameters of the question she submitted.

This is to do with the fall in taxation revenue.

The Deputy is confused in her questioning or perhaps she is afraid she will not be able to make her speech about this particular tax break. This question relates to the Exchequer figures for the first nine months of 2003 and the expected budget surplus. The Deputy has tabled some questions for later today when she can introduce the speech she made a moment ago which is irrelevant to this question.

We may get to Question No. 148 in the Deputy's name asking the Minister for Finance if he is considering the abolition of section 481 tax relief for film making, if his attention has been drawn to concerns expressed at the impact of such a move on employment in the film industry here and if he will make a statement on the matter. Section 481 is one such well known tax break to which I am sure Deputy Burton refers.

In regard to the specific question on the Exchequer figures for the year, I have outlined the figures up to 31 August. The Exchequer nine months quarterly figures will be published on Thursday, 2 October and, as usual, there will be a press briefing by officials of my Department.

The Minister's reply is grossly inadequate because he seems unconcerned by the disclosures by the Comptroller and Auditor General about how extremely rich people—

That has nothing to do with the question.

It has everything to do with the fall in tax revenues—

We are dealing with Question No. 139 in the Deputy's name.

—as disclosed by the Exchequer returns to the end of August. The Minister has confirmed significant falls in tax revenue and a significant undershoot compared to his budget estimate. The Comptroller and Auditor General's report shows, as does other information, that part of the reason for the fall in tax revenues is the culture of tax avoidance, about which the Minister could ask some of the people on his backbenches.

What steps is the Minister taking to ensure that people who ought to be paying tax contribute to the Exchequer by the end of this financial year?

I have replied to Question No. 139 regarding Exchequer figures for the first nine months of 2003.

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