Allegations concerning Minister Fahey
Sargent raises allegations about Minister of State Fahey’s property interests, donations, fisheries decisions and conduct, and asks whether the Taoiseach will dismiss him. The Taoiseach defends the Government’s tax-relief and anti-avoidance measures, says alleged ethics breaches should go to the Standards in Public Office process, and challenges Sargent to provide evidence; Sargent continues to accuse the Government of tolerating wrongdoing.
No, I am asking about Fianna Fáil supporters, be they in Government or out of Government, and whether the example and behaviour of those individuals is something the Taoiseach is endorsing, standing over and recommending for other people to emulate. Twenty properties in Ireland — Minister Fahey — and seven abroad. He owns half a share in a property company and has stocks and work in progress worth €1.4 million. He has a hazy recollection——
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——of receiving donations from Monarch Properties. He failed to declare interests in a Moscow hairdressing business——
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I have not moved on. It is the same question. A Minister of State in the Government——
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I would like to ask the Taoiseach whether he is standing over his Minister of State——
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——who is under investigation by the Ombudsman for giving 75% of total State compensation for fisheries vessels lost at sea——
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——to two constituents, and giving half of Ireland's mackerel quota to just one boat, the Atlantic Dawn.
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It is not appropriate to cast aspersions on Members if the Deputy cannot substantiate them.
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Does the Taoiseach relate to the business incentive saying, "Fortune favours the brave"? Under the Taoiseach's watch——
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——fortune favours the corrupt and the greedy. Will the Taoiseach change that and will he sack the Minister of State, Deputy Fahey?
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The Taoiseach should just answer the question.
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I assume the Deputy is referring to the Revenue Commissioners study on the top 400 earners which focused on the problem that has arisen with high earners and low tax due to miscellaneous tax reliefs brought in by all Governments over the past 25 years. The difference is that, unlike others, we have done something about it.
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We have brought in 33 anti-avoidance measures and terminated 17 tax relief schemes provided by the Government.
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The Minister for Finance took an overall view of the schemes on the Statute Book and has eliminated a large proportion of those, effective from 1 January. It is the greatest overhaul of the tax relief schemes since the early 1960s. Because of all the measures introduced to prevent tax avoidance, in 2002 the top 1% of earners paid 18.6% of all income tax and this year it is expected that those earners will pay more than 20% of all income tax. Because of the changes in the law and the anti-avoidance measures the Government has brought in——
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——the top 1% of taxpayers are now paying 20% of all income tax. In contrast, those earning the average industrial wage, which is estimated to be in excess of €30,000, will pay 6% of all income tax.
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What does this have to do with the questions?
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In 1997, those earning at or under a far lower average industrial wage paid more than 14% of all income tax. This shows that through the Government's policies, we are now seeing high earners paying not alone a significant amount of tax but also a significant total of overall tax revenue. This shows the effectiveness of the Minister's policy.
If the Deputy has anything to say about breaches by the Minister of State, Deputy Fahey, of the Ethics in Public Office Act, which was introduced ten years ago, I suggest he should talk to Mr. Justice Smith, because he is the appropriate officer.
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If the Deputy has anything to say about the probity of anything else in regard to the Minister of State, Deputy Fahey, he should say it outside the House and let the Minister of State deal with it.
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It has been said many times by many people to the Taoiseach. There is nothing new in what I say.
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The newspapers tell us this morning that the Taoiseach got his way with his nervous backbench Deputies, as if he has some influence on the matter.
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The Deputy is moving all over the place. He is entitled to one question on one topical issue but he is going outside that.
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The Deputy is not entitled to make allegations against Members in the House that he cannot substantiate.
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No problem. Will the Taoiseach stand idly by while dodgy builders in the Galway tent like Mick and Tom Bailey and dodgy builders in Governments like the Minister of State, Deputy Fahey, set the real standards for Government under this Fianna Fáil-Progressive Democrats Government?
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The Deputy's time is concluded. I ask him to resume his seat and allow the Taoiseach to reply. The Deputy is not entitled to——
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——and is he happy with the standards being set in Government by his Minister? Is he going to ensure that Fianna Fáil, which is continually associated with greed and corruption will——
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From looking at the facts and figures in the recent reports from Revenue, it is clear that it is because of the actions of this Government and the laws we have introduced that people who evaded tax in the past, are no longer doing so, whether they are dodgy builders——
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——legitimate builders or any other kind of builders. They are now paying large sums of money to the Revenue. Settlements have led to the tax system being cleaned up. People who had all kinds of systems of evasion, within the country and outside of it, are now being detected because of the extensive laws we have introduced. The data supplied by the Minister for Finance in reply to recent questions shows he has restricted the relief for high earners. A series of measures taken by the Government in recent years, which the Minister has detailed to the House in reply to parliamentary questions, complements this action. A significant amount of tax is now being paid. The highest earners, who comprise 1% of the total number of taxpayers, now pay almost 20% of all income tax.
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The Standards in Public Office Act has been in place since 2001. As Head of Government for the past nine years, I have introduced legislation in this area which some Members believe is unduly strict.
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The Standards in Public Office Commission is part of the system for investigating Members. I am not the investigator.
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Deputy Sargent must either put up or shut up. If he has evidence, he should give it to Mr. Justice Smith. If he does not, he should come into the House tomorrow and withdraw his statement.
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I have no difficulty in telling the truth. The Taoiseach knows well that the Minister of State was aware of the situation.