In a reply to a parliamentary question to Joan Burton TD, Minister Lenihan has revealed that members of the Commission on Taxation, which produced its final report and recommendations recently, were in receipt of fees totalling €523,600 over the course of its work. Members received daily fees of €700, with the Chairman receiving €1,000 per day.

Commission Chairman, Frank Daly received nearly €120,000 for his work on the Commission in addition to his significant state pension for his former role as head of the Revenue Commissioners. Only two members of the Commission, Brendan Hayes of SIPTU and Feargal O’Rourke, son of former FF Minister Mary O’Rourke, declined payment for their services to the Commission.

Commenting on these revelations, Deputy Joan Burton TD said “These people must be living on a different planet to the rest of us. I just can’t believe that the Minister for Finance would agree to such sky-high fees at a time when the public finances are in such a mess.

“It beggars belief that a committee composed largely of highly paid tax experts would be paid vast sums of money to recommend that the rest of us pay more tax when these same experts earn their crust by advising wealthy people how to avoid tax.

“The Tax Commission’s report is certainly a valuable contribution to the debate on how we should go about closing the black hole that Fianna Fail have opened up in the public finances, and it is clear that a big job of work went into preparing it, but the country just can’t afford to splash out Celtic Tiger fees at a time when family budgets are under such pressure.

“For many of the tax experts on the Commission, being a member of such a body would only add to their prestige. At a time of national economic distress, it should have been an honour and a privilege for them to contribute to the Tax Commission’s work without collecting extortionate fees. Brendan Hayes, the SIPTU representative on the Commission, at least had the good sense to recognise this and declined payment for his services.

“It is interesting to note that a large number of the Tax Commission’s proposals are aimed at making life easier and cheaper for tax adviser’s corporate clients while piling the pressure on ordinary families through water charges, property taxes and child benefit cuts.”

DÁIL QUESTION

NO 131

To ask the Minister for Finance if any payments, payments in kind or reimbursements were made to members of the Commission on Taxation; if sums remain outstanding; if he will provide such information for each member of the Commission; and if he will make a statement on the matter.

– Joan Burton.
* For WRITTEN answer on Tuesday, 22nd September, 2009.
Ref No: 32388/09

REPLY

Minister for Finance ( Mr Lenihan) : In recognition of the commitment involved in the participation of members on the Commission on Taxation the following fee structure was put in place by my Department when the Commission was established:

A fee of €700 per day where a commitment of a half day or more was required;
A fee of €350 per day where a commitment of less than half a day was required.

In respect of the Chairman the equivalent figures are €1,000 and €500 respectively.

I understand that the Commission is in the process of finalising arrangements with my Department to pay the final tranche of fees that are due to members of the Commission. Based on payments made to end June 2009 and on fees estimated to be due for commitments from that date, the following table indicates the total amount of gross fees payable to Commission members for the period March 2008 to August 2009. The deputy may wish to note that all payments by my Department to the Commission members are chargeable to tax under Schedule E and subject to deductions (tax, PRSI and levies, as appropriate).

I am informed that re-imbursement of travel expense amounted to a total of €537.60.

Cumulative amount payable to Members in fees
Name 2008 2009
Arnold, Tom €6,650 €12,950
Burke, Julie €14,000 €15,750
Collins, Micheál €14,000 €32,550
Convery, Frank €9,100 €12,600
Daly, Frank €54,0001 €65,6002
Donohue, Tom €8,050 €20,300
Fahy, Eoin €11,900 €22,050
Hayes, Brendan3 Nil Nil
Hunt, Colin €7,0004 Nil
Leech, Sinead €12,250 €19,950
Lucey, Con €11,200 €17,150
McCoy, Danny €11,550 €16,450
O’Rourke, Feargal5 Nil Nil
O’Sullivan, Mary €16,800 €24,500
Redmond, Mark €15,7506 Nil
Soffe, Willie €12,600 €23,450
Somers, Deirdre €5,6007 Nil
Walsh, Mary €12,250 €26,600
Total €222,700 €309,900

1Figure reflects a voluntary deduction of 20% on fees payable from 1 December 2008
2 See footnote 1.
3 Fees were not paid to Mr Hayes or Mr O’Rourke at their request
4 Fees were not paid to Colin Hunt from September 2008 at his request
5 See footnote 3
6 Fees were not paid to Mark Redmond from December 2008 at his request
7 Fee paid up to her resignation from the Commission in September 2008