Taoiseach claims he 'closed more loopholes than anyone'

The Taoiseach defended his record in the introduction of tax breaks when minister for finance during exchanges with the new Labour leader.

Mr Pat Rabbitte noted that the Taoiseach had given a commitment to the Green Party leader, Mr Trevor Sargent, to review tax shelters and breaks.

"Will the Taoiseach's review include the revocation of the measure that he introduced to benefit Mr Ken Rohan, a supporter of his party? Is he prepared to review the legislation relating to tax exile status which he introduced in 1994 to make it easier for those living abroad and not paying tax here to visit more frequently, bestow requests on the natives and spend time at race meetings?

"Is he prepared to ask the Minister for Finance to look at industries that are entirely tax-exempt and whether industries, such as the bloodstock industry, might not be able to bear a modest tax without the stallions following their owners abroad?"

Mr Ahern said he had "closed more shelter and loopholes than anyone else and got into deep water with the private sector because of the amount of schemes I eliminated".

He had also initiated a number of schemes.

"When one of the most valuable art collections in the State was packed and ready to be transported abroad, I was lobbied by many people, including individuals on the Labour benches at present, to do something."

Mr Ahern said that it would be easy to close off the loophole relating to tax exiles and to ensure, as Mr Rabbitte had indicated as new Labour policy, that all people who were tax exiles in Ireland were made aware that neither they nor their investments were welcome in Ireland.

Mr Rabbitte remarked: "I never said that."

Mr Ahern said it was very close to what Mr Rabbitte had said.