This is the section that deals with taxation. I heard the response to Deputy Costello's question on where it is decided that Irish taxation should apply. Will the pension levy apply in this case? My understanding is that in the long term, these pensions will not be derived from Irish sources, so what taxes will apply? The Minister of State referred to tax under Schedule E. Will he elaborate on precisely which taxes are intended to apply?
European Parliament (Irish Constituency Members) Bill 2009 [Seanad]: Committee and Remaining Stages.
Sections 1 to 4, inclusive, agreed to.
SECTION 5.
Question proposed: "That section 5 stand part of the Bill."
It seems to contradict the principle of the legislation, as there will be a European salary but a national taxation system. I know that all human decisions are not perfect, but that seems to be a strange contradiction. From time to time, various budgetary elements are introduced such as levies. Do these apply to MEPs? Do they apply to new MEPs? MEPs that are re-elected can chose to continue with the national salary rather than the European parity salary, so it would seem that there will be two distinct salary payments and two distinct taxation systems. We need some clarification on this point.
The pension levy will not apply, because the pension will be funded by the European Parliament under the levy legislation.
The European salary is subject to national taxation, namely, income tax. I would differ from Deputy Costello in one respect. Let us suppose that there was a common EU taxation system for MEPs such as that which applies to European Commission officials. It is a relatively low level of taxation by our own national standards. The perception would be that when one takes salary and all the various allowances and supports, MEPs would be generally regarded as well remunerated. The public here, who send our MEPs to Europe, would probably be happier that they would be subject to national taxation provisions. Like all public representatives, other than those who live and work in the centre of this city, MEPs are bilocated between the European Parliament and their home country residences. In that respect they differ from European Commission officials, the majority of whom live away from home most of the year.
Normal national taxes will apply in all respects with credit for tax paid to the EU to avoid double taxation. The taxation reflects the fact that MEPs will continue to reside and be based here at least in part.
Question put and agreed to.
Sections 6 to 10, inclusive, agreed to.
Schedule agreed to.
Title agreed to.
Bill reported without amendment and received for final consideration.
Question proposed: "That the Bill do now pass."
I thank Members for their co-operation in facilitating the passage of the legislation through the Oireachtas.
I thank the Minister of State. As I said, this is a small step forward in the European Parliament developing its own mandate and I hope it will bring more focus to our business. As Deputy Costello said, I hope it triggers some fresh thinking about the way we do our business here to ensure we give more attention to European issues and that, in turn, we give our voters more interest in and understanding of them.
I do not believe we have gone through legislation as quickly as this in some time. It is great see such a degree of consensus on this legislation. I hope we have as much consensus when we come to the 28th Amendment to the Constitution Bill, which will be coming up next week. This is worthwhile legislation which I hope is the precursor to much greater in-depth discussion of all things European once the Lisbon treaty is in place.
Question put and agreed to.
A message will be sent to the Seanad acquainting it accordingly.