asked the Minister for Finance if he has made any estimate of the annual value of the "black economy" and of the potential tax revenue on such undeclared sources of income lost to the Exchequer annually; and, if so, if he will outline the amounts involved.

The so called "black economy" is, of course, a concealed area of activity and because of that factor no reliable estimate of its annual value can be made. For the same reason no estimate of the potential tax revenue lost on such undeclared sources of income has been made.

I would, however, refer the Deputy to the annual reports of the Revenue Commissioners in which they record the results of their activities in this area. Copies of their reports are in the Library.

Can the Minister not give us even an approximate idea of the extent of the "black economy" even, for example, by checking the growth in VAT returns against growth in trade generally in the country which would surely indicate the slice that was slipping through the net?

No. The Deputy will appreciate that I am much more concerned with ensuring that whatever be the extent of the "black economy" the anti-evasion measures of the State would reduce it very considerably and that has been the preoccupation of the Revenue Commissioners. That is more effective. As regards the extent of it, the Deputy may be aware that where this exercise has been undertaken, in the UK the estimates vary from 3½ per cent of gross domestic product to 7½ per cent which underlines how inaccurate such estimates may be.

Would the Minister not agree that even the lower estimate for Britain of 3½ per cent would represent a substantial amount of money in Irish terms? Would he try to indicate whether the Irish estimate for the "black economy" would be closer to the 3½ per cent or the 7½ per cent figure?

In so far as these figures are a source of disagreement even within the United Kingdom, obviously they should not be a guide to us in estimating what ours would be. Subject to that, the Deputy and the House, I think, would be much more concerned with the effect of anti-evasion measures which the Government are taking and I can assure the House that this is being done very effectively.

There is no disagreement about evasion.

11.

asked the Minister for Finance if his Department have engaged informants for the purpose of obtaining information about the liability of individuals to income tax, if so, the number involved, the cost involved per individual and the standard rate, if any, of payment for such informants.

The answer is in the negative.

Will the Minister comment on a Sunday Independent article quite recently which stated that a number of informers exist and that they are liable to payment at the rate of 5 per cent? Is that article correct or incorrect?

The Sunday Independent have their criteria; I have mine. They do not necessarily coincide.

Would the Minister say if any of the money earmarked in the Book of Estimates as Secret Service money is utilised in accordance with the suggestions in the question?

I have been as emphatic as I could be in saying that the answer is in the negative. I mean that very deliberately.