Differences emerge over disciplinary measures

DIFFERENCES ARE emerging between the Government and Opposition over how to handle the disciplining of Independent TD Mick Wallace for his under-declaration of VAT payments to the Revenue Commissioners.

Senior Fine Gael and Labour figures have expressed concern that any motion of censure against Mr Wallace could prejudice future action by State agencies against him, but Opposition sources say the fact the TD has admitted evading tax makes this unlikely.

Fianna Fáil has said it will move a motion of censure against Mr Wallace if the Government or the technical group fail to do so.

However, it agreed yesterday to defer consideration of a motion until the Dáil committee on members’ interests discusses the issue today.

There are also differences over the decision of Ceann Comhairle Seán Barrett not to accede to Mr Wallace’s request to address the Dáil about his €2.1 million tax settlement with Revenue.

“It would have been helpful if Mr Wallace had been allowed state his case to his colleagues,” said one Opposition source.

Taoiseach Enda Kenny said he regarded the matter as being of the utmost seriousness. “The Dáil stands ready if necessary to put together an all-party motion on this matter,” he told TDs in the Lower House.

Fianna Fáil leader Micheál Martin said he had a “fundamental problem” with someone “knowingly deceiving” the tax authorities, particularly in relation to VAT. Asked if Mr Wallace should therefore resign as a TD, Mr Martin said: “I don’t think the two are tenable.”

Mr Wallace’s building firm MJ Wallace Ltd accounted for the second-biggest settlement in the Revenue’s list of tax defaulters for the first three months of 2012, published yesterday.

As revealed last week in The Irish Times, it shows a tax under-declaration of €1,419,894, interest of €289,146 and penalties of €425,668, giving a total settlement of €2,133,708. The committee meets at lunchtime today, on foot of a request by Mr Barrett to hold an inquiry into Mr Wallace’s tax affairs.

The meeting takes place in private, and members are expected to receive advice from Melissa English, parliamentary legal adviser to the Oireachtas.

There are doubts whether the committee can deal with Mr Wallace as his tax offences occurred before he became a TD.

The committee is chaired by Independent TD Thomas Pringle and the other members are John Browne of Fianna Fáil, David Stanton and Olivia Mitchell of Fine Gael, and Jack Wall of Labour.

It is unlikely to make any decision on Mr Wallace today, according to informed sources, as fair procedures would demand that it first ask him to make a submission. It may write to the Wexford deputy asking him to appear before the committee to state his case.

Labour chief whip Emmet Stagg said the party whips had decided to defer consideration of a censure motion in light of the Ceann Comhairle request for the issue to be dealt with by the Dáil committee on members’ interests.

He said the whips would meet again to review its stance later today after the committee considered the matter.

“If they can’t do anything, we will look again at the possibility of a Dáil motion about Mr Wallace.”

He warned that any motion would have to be legally proofed to ensure it did not prejudice any future legal action by a State agency. Mr Wallace could face criminal prosecution if he fails to pay the €2.1 million settlement agreed with Revenue by his company MJ Wallace Ltd.

Fianna Fáil whip Seán Ó Fearghaíl said firm, resolute action was needed within a tight timeframe. “There is general agreement that this shouldn’t carry on much longer,” he said. “We won’t let this drag on.”

The Campaign Against Household and Water Taxes said Mr Wallace was wrong to make a false VAT declaration but criticised attempts by some politicians and sections of the media to discredit those refusing to pay the household tax by linking the two issues.