Vol. 545 No. 3
55 Mr. M. Moynihan asked the Minister for Agriculture, Food and Rural Development the number of dairy farmers likely to benefit from the amendment to the tax code providing for relief for the purchase of restricted and leased quotas; the amount of money involved; and if he will make a statement on the matter. [30047/01]
Chapter 3, Part 23 of the Taxes Consolidation Act, 1997, was introduced by the Finance Act, 2000, and enables capital allowances to be claimed in respect of qualifying expenditure incurred on the purchase of a milk quota under a milk quota restructuring scheme or on expiry of certain land and milk quota leases on or after 6 April 2000. Following completion of consultations with the European Commission by the Department of Finance and my Department, a ministerial order was recently signed which activated the commencement of these provisions.
The main mechanisms for acquiring additional quota under the revised regime introduced with effect from April 2000 are restructuring schemes and purchase of leased quota on expiry of a land and quota lease. In excess of 15,000 dairy farmers purchased quota under the 2000 milk quota restructuring scheme while approximately 11,200 producers purchased quota under the 2001 scheme. In addition, in excess of 1,000 producers purchased the leased quota on expiry or earlier termination of a land and quota lease agreement. Without having detailed information on each producer's assessment of income tax liability, it is not possible to estimate the amount of relief that will be granted under this scheme. The number of producers referred to above, however, gives an indication of the potential beneficiaries under this scheme.
