Sir, - The controversy over water charges provides the ideal opportunity to highlight two lunatic attitudes to State income and expenditure beloved by political parties of many hues: inefficient tax collection and inefficient expenditure. Variation of an existing tax to increase or reduce income costs nothing. For instance the taxation of petroleum products on importation is the most efficient form of taxation, with huge revenue arising from one single transaction. Another penny per litre costs nil administration.
What I call "begrudger taxes" are grossly inefficient. These are designed to tax voters who are unlikely to support one or more parties, while giving the impression of "getting at the fat cats". Residential property tax and water charges are perfect examples. Both were highly expensive to collect and cost the taxpayer much more than the income accruing to the State.
An extra penny tax on income over a certain amount costs nothing to collect. Who would pay for about one million water meters?
Who would pay to have them read? Some seem to have learned half this lesson. The Green Party or the PDs cannot learn from others' mistakes. They will surely learn from their own.
On the question of expenditure the Department of Social Welfare has been well hoisted by the Labour Force Survey, produced by the Taoiseach's Department. Agriculture and Health have been proved to be extremely profligate without known casualties. Golden handshakes are a regular means of avoiding issues.
Two or more years in office are more than adequate for any managing director to achieve results or else . . . But then, I am convinced that we can never have good government while we select 15 MDs and 15 assistant MDs from about 85 TDs - Yours, etc.,
Foxrock Avenue,
Dublin 18.