Watershed TTRA ruling

IN ADJUDGING the Revenue Authority (TTRA) constitutional, the Privy Council has handed the Government a significant victory with consequences well beyond the administration of taxes.

While the case in London against the authority was formulated somewhat differently, at its core was a fear that the new body could become simply a front through which politicians prosecute foes.

But on September 16, the law lords rejected this notion.

“If members of the board sought to exercise the authority’s employment powers to pressurise staff to act in a way that would advance the interests of a rival political party or faction of government (for example, by requiring an investigation into the tax affairs of a political rival, perhaps in the run-up to an election), they would act outside the powers conferred upon them and would be susceptible to challenge,” said the court. “So too would the minister if he or she purported to direct the board to act in such a way.”

This is an important clarification. It spells out the fact that while the TTRA will be semi-autonomous, attempting to interfere with its independence will generate consequences. This could furthermore apply to other government authorities that might be coming; the court rejected the notion that only some functions can be privatised.

From the moment the court, in July, declined to block implementation of a provision of the TTRA statute which compelled 1,200 Ministry of Finance workers to choose where they wished to work, the writing was on the wall for those against the new body.

But though Minister of Finance Colm Imbert was ecstatic in celebrating the Government’s victory this week, legitimate fears and logistical concerns generated by this new entity remain issues which the State must grapple with going forward.

For instance, while the law lords took comfort in the open parliamentary procedures used to appoint top-level TTRA leadership, in practice, affirmative resolutions only provide a guarantee of openness in initial appointments, not operational independence.

That spurious grounds for removal, meanwhile, can be advanced is not outside the ambit of collective experience. Nor is the fact that political smear campaigns do damage first before remedies can be obtained in a court.

The Cabinet won, but have Public Services Association workers? They are still in the dark about VSEP details and the consequences of a lack of placement in the service.

Even Minister of Labour Stephen Mc Clashie, apparently not closely involved in this matter, was unclear when questioned this week on the transition.

“Some people may have to be reclassified,” he said. “I am not altogether sure how that is working but my labour sense tells me those are logical things that must happen.”

Like the minister, many await the details.