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Dáil
‹ Leaders’ Questions.

Allegations concerning Minister Fahey

Summary

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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A Cheann Comhairle——

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——of receiving donations from Monarch Properties. He failed to declare interests in a Moscow hairdressing business——

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

Deputy Sargent has moved on to another question.

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

I ask the Deputy to desist from casting aspersions on Members of this House.

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What about Deputy Cuffe?

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I would like to ask the Taoiseach whether he is standing over his Minister of State——

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What about chemical Cuffe?

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

I ask the Deputy to desist from going down that road.

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

It is not appropriate to cast aspersions on Members if the Deputy cannot substantiate them.

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I am simply reading the record for the Taoiseach's benefit.

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It is the truth.

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I am not casting aspersions or making accusations.

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A Deputy

The Deputy is.

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I am giving facts to the Taoiseach to help him recollect his position as Taoiseach.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

Deputy, you have to be careful.

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The time has concluded.

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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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Hear, hear.

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I presume the Ceann Comhairle's ruling is on the tax question.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

I do not know how many questions Deputy Sargent asked.

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The Taoiseach should just answer the question.

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But under Standing Orders, a Cheann Comhairle——

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They are all facts.

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——I can only answer one question, the one on tax breaks.

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John O'Donoghue Mr. O’Donoghue Fianna Fáil

All around the mulberry bush.

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I know it is embarrassing for the Taoiseach.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

On the tax question.

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I was not sure which question to answer, a Cheann Comhairle.

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Standards in public office.

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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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Endorsed 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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In 2008.

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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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What about the Minister of State, Deputy Fahey?

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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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Bluster.

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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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You are the Taoiseach.

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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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Deputies

Hear, hear.

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It is in the newspapers.

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Deputy Sargent would not say it outside the House.

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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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Then the Deputy should say it outside the House.

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That is what is startling.

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That is a cowardly approach.

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Deputy should return to the question.

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I am asking the Taoiseach——

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Deputy is abusing Leaders' Questions.

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Far from it. I am trying to get to the heart of what Leaders' Question is for.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

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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I am asking the Taoiseach a question and the Ceann Comhairle is interrupting me.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Deputy is not entitled to make allegations against Members in the House that he cannot substantiate.

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I would like to see them try and substantiate it because it is well documented.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

I ask the Deputy not to go down that road.

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If it is so well documented then why does the Deputy not say it outside the House?

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

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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This is the standard the Taoiseach is setting and he must answer for that.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

That has nothing to do with the question about tax.

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It has everything to do with it.

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The Government has overseen a rise of 270% in house prices.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Deputy is abusing Leaders' Questions.

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A Cheann Comhairle, what are the rights of Members?

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I am not.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Deputy is.

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Will the Taoiseach sack the Minister of State, Deputy Fahey——

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

That does not arise.

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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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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Deputy's time is concluded. I ask him to resume his seat.

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That is what I am asking.

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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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Or dodgy Ministers.

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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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How much have PAYE workers paid over a number of years?

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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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Who believes that?

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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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The Taoiseach knows well what went on.

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Rory O'Hanlon An Ceann Comhairle Fianna Fáil

The Taoiseach should be allowed to continue without interruption.

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I am not the investigator of these matters.

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The Taoiseach knows well what the Minister of State, Deputy Fahey, has done.

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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.

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A blind eye is being turned to corruption.

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