The Gazette 1971

Additional Imposition of Estate Duty The Council of the Incorporated Law Society of Ireland have expressed serious concern about the provision of the Financial Resolution No. 7 on death duties recently published. The resolution which takes effect in relation to gifts made on or after 28th April 1971 substantially reduces the present exemption from estate duty of gifts made in consideration of marriage. Until April 28th last such gifts were free of death duties. Under the pro- posed change in the law only the first £5,000 will be exempt where the gift is made by a parent or a party to the marriage, and only the first £1,000 if the donor is a remoter relative. results from the present tax exemption which applies even whent he owner dies shortly after the gift. It is well known that many people are reluctant to part iwith their property in favour of their children. Anything which encourages the transfer of holdings from parent to son is an incentive to business enterprise and the adoption of modern farming and business methods as well as being a valuable preventive for the evil of emigration which is a most serious problem in the less- developed parts of the country. The Council feel that the practical and psychological effects of the change in the tax law proposed in the Resolution represent a serious reversal of social policy.

The Council believe that it is contrary to accepted social policy that any further restrictions should be made on the exemptions from estate duty in favour of marriage gifts. Some years ago the period for complete exemptions of all gifts was raised from three years to five before date of death but the absolute exemption in favour of marriage gifts continued. Under the Budget Resolution, which requires confirmation in the forth- coming Finance Act, a large number of agricultural holdings will be brought within the tax net. Heavy duty will be payable. Farmers and others who have decided to transfer their land to children on marriage will not have the psychological incentive to do so which

The new imposition of duty will cause particular hardship in the case of the unexpected death of a young husband leaving a widow and family. In such a case there is often little ready cash to meet an unexpected burden of death duties and stock may have to be sold or a loan raised on mortgage at a high interest rate. It is unfair to a young farmer, who may have involved himself in heavy capital expenditure in modernising the farm, to be suddenly faced with a heavy claim for estate duty because the person who gave the farm to him died without living for five years.

Big Pay Rises Amongst Top Executives Ireland's top state and semi-state executives, including the Taoiseach, Mr. Lynch, Cabinet Ministers, Dáil Deputies, Senators, the Judiciary and senior civil ser- vants, will all get a sizeable pay rise—if the Govern- ment's Review Body recommends it. Chairman and Deputy Chairman of Dáil Eireann and Seanad Eireann; allowances of members of Houses of the Oireachtas and remuneration of the Judiciary." The Review Body, which was set up in 1969, com- prises Mr. Liam St. J. Devlin (Chairman), Mr. J. Charleton, Major M. Donegan and two members of the Labour Court, Mr. P. Doyle and Mr. J. Quigley.

Last night the Government announced that the Minister for Finance had asked the Review Body on Higher Remuneration in the Public Sector to "examine the general level of remuneration" in these categories. This move follows growing pressure, both inside and outside the Dáil, for a wide ranging upward review of all top executive salaries in the public service. There was general feeling last night that the Review Body will almost certainly recommehd higher salaries all round. Many in these higher grades were not granted increases at the time of the last two wage rounds. This surprise announcement of the review comes only nine days after Mr. Colley in the Dáil turned down an application by Deputies in all parties for an increase in their present Dáil allowance of £2,500 a year. A G.I.B. statement said : "The Government have also had under consideration the level of remuneration of members of the Oireachtas and of the Judiciary in the light of general pay movements over recent years. They consider that it would be appropriate to have an exam- ination made by an independent body of the remuner- ation of those two groups. "They have decided to avail for this purpose of the services of the Review Body. The Review Body has, therefore, been asked to examine and report on the levels of remuneration of members of the Government, Parliamentary Secretaries, the Attorney General and the

Mr. Harold O'Sullivan, general secretary, Local Government Officials Union, said these higher state officials deserved to have their salaries reviewed. Higher civil servants, he added, and higher local authority officers, had missed out on some increases which their more junior colleagues had been granted. This caused a problem of differentials and it was only fair that the Review Body should examine this, as it wasa question of status. The last increase in Dáil allowances was in 1967 when Mr. Haughey was Minister for Finance. The Taoiseach's total pay was increased to £8,000 a year, Ministers got £6,000 and T.D.s £2,400 in 1969, after a call in an Irish Independent leading article, Mr. Lynch and his Ministers took a 15 per cent cut in sympathy with general restraint called for by the Minister for Finance. The Judiciary got their last pay rise in 1968 when District Justices were given £3,750 a year; Circuit Justices £5,000; High Court Justices £6,000 and the Chief Justice £8,000. At the end of last year, the Department of Finance proposed pay cuts of £1,000 a year for its top officials by the removal of special allowances. Irish Independent (2nd April 1971) 99