asked the Minister for Finance the number of farms included on classification lists issued by the farm tax commissioner to the local authorities by September of this year, and how much is expected to be raised by the farm tax this year, and how this compares with original Government forecasts; how much is expected to be raised next year; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Farm Tax.
6.
The total number of holdings on the classification lists compiled by the farm tax commissioner during the period ended 1 September 1986 was 2,143; it is estimated that about £5 million is being demanded by local authorities on foot of those lists; the amount forecast in January last was £6 million. It is not possible to state at this stage how much is expected to be raised next year.
In June last the Minister replied to a question in which he stated that 2,900 holdings would be assessed by 1 September and that local authorities would be advised by 30 September. Has this target not been achieved?
I have given the information which indicates the number of holdings that have been classified during the period ended 1 September, namely 2,143.
How, then was it that by the end of May 1986 the Farm Classification Office had determined the adjusted acreage for 2,340 farm holdings and estimated that 2,900 would be completed by 1 September.
I do not know where the Deputy is getting that information. I have given him the authoritative information as to the number of holdings that have been classified.
This is a very serious question because the Minister for Finance——
I hope that that is not an indication that we are going to have a long speech because it would not be in order.
I drew the Minister's attention to a reply from the Minister for Finance to a question on Wednesday, 18 June 1986 in which the first sentence of the Minister's reply was "By end-May 1986 the Farm Classification Office had determined the adjusted acreage of 2,340 farm holdings". The Minister now in November 1986 informs me that it is only 2,100. Can he reconcile these figures? Was I misled in June 1986 in the reply that was given?
It is quite possible, if the Deputy thinks about it for a moment, to reconcile the two figures. Of the farms that would have been classified during that period some would have turned out to be more than 150 adjusted acres and some to be less than 150 acres. The 2,143 farms that I refer to are the ones that have been classified in this year's list as being over 150 acres, because it is only those to which the tax will apply. Obviously, more farms will have been assessed than the total number which are over 150 acres. These, of course, will be subject to display in classification lists in subsequent years when a lower limit for applicability of the tax will be possible on the basis that all relevant farms in that acreage category will by then have been classified.
Can the Minister explain why he cannot estimate then on the 2,000 odd holdings of over 150 adjusted acres what the revenue will be next year from this tax? Can he indicate when he expects that the estimate given by his predecessor this time 12 months of £60 million to £70 million intake for 1986 will be achieved?
It is too early yet to be able to say what the yield from the tax will be in 1987 in that we are not certain at this stage what level in acreage terms will be the one above which the tax will apply on the date 1 September 1987 when one will have to close the books, so to speak. To determine what the acreage is above which the tax will apply one will have done at that stage a comprehensive evaluation of all the holdings with adjusted acreages above the level in question. Until the level is set it is not possible to determine what the yield of the tax will be. It is also necessary before determining the yield of the tax to determine what the rate of the tax will be. As the Deputy is aware, a formula is provided in the Bill for this purpose but it is not possible at this stage to say definitely what figure that formula will throw up. Clearly, the yield of the tax will depend principally on the rate at which it is possible for the officers of the farm tax commissioners' office to complete valuations and classifications to enable the level above which the tax is to apply to be set reasonably low.
When does the Minister expect that he will be able to give us this information? At what stage will levels be set?
I would expect that the likelihood is that estimates might be possible to give during the early part of 1987 but that a definitive figure will not be possible to give until after the classification list has been published. Only then, when one knows exactly what the acreage level will be above which the tax will apply, can one give a definitive indication of the yield.
An cheád ceist eile.
Is it not clear from all of that that even now there is no hope of realising the figure of £5 million or £6 million which the Minister is estimating at this point? How will he now justify the position originally taken by the Government that this tax was introduced to achieve a revenue of £85 million, over twice the take at the time? Is it not quite clear that——
That is a matter for a speech, Deputy, at some place else.
I will put statistics to the Minister. Will he not agree that the factors which he now mentions, namely the time it takes to do the survey and so on, were all known to the Government when he introduced this? Is it not quite clear now that when he is revising downwards from 2,900 units to 2,100, this tax is turning out to be a total nonsense and nowhere in line with the Government's——
That is a speech, Deputy. Please think about it. It is a comment on information you have got. Question Time is for getting information and not a time for making speeches.
There are so many questions one can put on this but I will sum it up.
This is not a time for summing up.
Will the Minister acknowledge, in view of all that he has had to admit today, that this tax has now proved that we always said, that was a nonsense, that it would not yield revenue and that if the Government——
Will the Minister please answer Question No. 7.