Vol. 377 No. 6
asked the Minister for Social Welfare the extent to which the cost of purchasing a car, paying for a car by hire purchase, depreciation of a car, cost of running and repairing a car constitutes expenses allowable in a farmer's claim for unemployment assistance; the criteria used in arriving at the decision whether or not the various expenses are allowable; and the percentage of the expenses allowable.
123.
asked the Minister for Social Welfare the extent to which the cost of purchasing a tractor or other farm machinery, paying for such machinery by hire purchase, depreciation of such machinery, cost of running and repairing and insuring such machinery constitute expenses allowable in a farmer's claim for unemployment assistance; the criteria used in arriving at the decision whether or not the various expenses are allowable; and the percentage of the expenses allowable.
It is proposed to take Questions Nos. 121 and 123 together.
Firstly in relation to car expenses the position is that the cost of purchasing a car, whether it is purchased outright or by way of hire purchase agreement, is not allowed as an expense in assessing the means of farmers for unemployment assistance purposes. Neither is the cost of repairing a car taken into account. However, when assessing the means of a farmer, account is taken of motor car expenses necessarily incurred in connection with the running of the farm. There is no set formula used for calculating the amount of motor expenses allowable. Each case is dealt with on its merits and the amount allowable depends on the extent to which the car is used in the farming enterprise.
With regard to tractors and other farm machinery, the position is that if the tractor or other item of farm machinery is purchased outright, the capital cost is not allowed as an expense for unemployment assistance purposes but allowance for depreciation relative to usage is made in such cases. Where the purchase is made by way of a hire purchase or leasing arrangement the full amount of the repayments due under such agreement is allowed in the means assessment. Operational costs, including the cost of insurance and repairs, in respect of tractors or farm machinery are also allowed as an expense.
In examining the expenses claimed in respect of motor car and farm machinery, including tractors, social welfare officers have general regard to the results of farm surveys carried out by An Foras Talúntais. These surveys estimate the total expenditure on these items as a percentage of the gross output of the farm.
