Madam, - It is understandable for some of your readers to question the rationale behind the decision in Section 2 of the Finance Act, 1969 to grant tax-free status for original and creative works of art, in our case writing. The scheme was reviewed almost 30 years later, resulting in the passing of Section 195 of the Taxes Consolidation Act, 1997.
Statistics given by Minister for Finance Brian Cowen to Dáil Éireann on November 23rd last revealed that 93 per cent of artists were earning an average of €11,000 a year. Contrast that with the minimum industrial wage of almost €16,000 a year for a 40-hour week. Consider also the enormous amount of time a writer spends in researching and writing a book that may never be accepted for publication or may earn next to nothing in one of the most competitive trades in the world. Then consider the demoralisation and humiliation that so many writers have to overcome in these circumstances.
It is worth bearing in mind that those artists who are successful can generate economic activities in Ireland. They do not qualify for any of the grants available to industry. In addition, they may be net exporters, as any significant income is generated from sales of their work in other countries. This surely must tempt them to take up domicile in a tax-free country if the present scheme is radically downgraded.
Another factor that needs to be borne in mind is the benefit for our tourist industry from artists who have international reputations, Joyce being a prime example, while a host of summer schools and cultural programmes feature throughout the country each year.
Account should be taken of spin-off income in writing-related areas, which is, of course, subject to tax. The exemption applies only to earnings from published writing while all other writing is taxable. These activities generate Exchequer income.
The importance of the role of literature in society cannot be overstated. Many writers have influenced attitudes to injustices and inequities in societies, revealing valuable, alternative perspectives, while others have cast the spotlight in intimate ways into the shadows of their societies, Charles Dickens being an obvious example. Such a service to society is beyond any cost-benefit analysis and we endanger the writer's art at our peril.
It may well be that the scheme needs to be reviewed but surely there is much, much more to equity in society than a balanced statement of account. - Yours, etc,
PETER McKIMM,
Chairperson,
Irish Writers' Union,
Parnell Square,
Dublin 1.