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Dáil Éireann debate -
Wednesday, 14 Jul 1982

Vol. 337 No. 10

Private Notice Questions. - VAT Payments.

asked the Minister for Finance what arrangements have been made to provide loan finance for firms who are unable to make provision for payments of VAT at the point of entry in view of the implications for employment in these firms.

Clare): In my Financial Statement of 25 March 1982 I indicated that, if the change in relation to VAT on imports gave rise to financing difficulties for some firms, I would look at the possibility of arranging that the Industrial Credit Company could make loan finance available. Work on the development of an appropriate scheme is well advanced and the details will be announced as soon as they have been finalised.

Is the Minister aware that pressure will be put on a large number of firms due to the imposition of VAT at the point of entry and will the Minister provide loans at preferential interest rates to these firms?

(Clare): It is not envisaged that we will provide loans on concessionary terms.

Where will the ICC get the money to fund this?

(Clare): The amount needed could not possibly be known as yet. The ICC will provide a scheme for those who may not be able to get money through their own banking facilities. It is also envisaged that a large number of importers will be able to make their own arrangements. The scheme will be for the benefit of those who will not be able to meet their requirements.

I have allowed three supplementary questions and I shall not allow any more. I am calling item No. 5.

I want to raise on the Adjournment the closing of a factory in Carndonagh with a job loss of 25 and a personal loss to each employee of between £400 and £500 and to ask the Minister——

I will communicate with the Deputy.

——to ensure in this time of high unemployment that this particular factory——

The Chair will communicate with the Deputy.

With your permission, I wish to raise the administration of housing grants on the Adjournment.

I will communicate with the Deputy.

On a point of order, there was agreement that after Question Time the motion establishing the select committee on urban building land was to be moved at this time. Perhaps the Minister would indicate now that the motion will be taken at 7 o'clock.

By agreement the motion will be taken at 7 o'clock. The terms have been agreed.