(Limerick East): I move amendment No. 51:
In page 55, between lines 36 and 37, to insert the following:
"(d) period furniture, and works of craftsmanship in silver, glass or porcelain, 100 years old or more;".
When this section was originally drafted the proposal was to reduce the rate of VAT from 25 per cent to 10 per cent on works of art more than 100 years old. The Minister has modified the position since his announcement on budget day to what appears in the section and has removed the requirement that an allowable work of art should be in excess of 100 years old. He has tightened up the section quite considerably.
Effectively three new paragraphs will be added to the Sixth Schedule listing new items that would be 10 per cent VAT-rated. For example, there is reference to a painting, drawing, or pastel, or any combination thereof, executed entirely by hand, an original lithograph engraving and so on, or an original sculpture or statuary. I should like the Minister to consider extending the provisions of the section to include antiques and, for the purposes of such extension, to revert to the original intent on budget night, to talk, in terms of the extension I am proposing, of period furniture, works of craftsmanship in silver, glass or porcelain 100 years old or more. I am seeking the addition of a fourth paragraph to the Sixth Schedule to include antiques.
I believe that at present there is a huge loss of revenue to the Revenue Commissioners from the antique trade. What is happening is that, because of the 25 per cent VAT rate, the trade is being taken out of traders' rooms and being conducted at auctions in parish halls and public places. Second, the trade is being conducted by the submission of items to house auctions where furniture, other than the furniture and contents of the house, is being added and sold at public auction. There is a tax advantage in this exercise because, when something is sold at auction in a parish hall or at a house auction, VAT applies only to the auctioneer's commission, whether that be at 5 per cent or something less. This means the trade in antiques is being diverted into auctions where VAT is not charged on the market value of the item; rather is it being charged on the auctioneer's commission.
I can see the difficulties in framing a section which would allow for the inclusion of genuine antiques and exclude objects with little artistic merit or those whose age would be difficult to establish. I think the Minister will grasp my intent here. For example, any expert in antiques will be able to validate furniture which is 100 years old or more. I am also endeavouring to have included works of craftsmanship in silver, glass or porcelain. The extension to silver goods should be easily administered because silver is hallmarked. There should be absolutely no problem about establishing the age of any item of silver. Not only would the extension I propose be of benefit to people in the antique trade but it is my belief that the trade would move back from auction rooms into antique shops with a consequent increase in the VAT returned to the State.
I should like the Minister to take this amendment on board. If he cannot reply in detail this evening he might examine the matter between now and Tuesday next. I am seeking an extension to cover genuine antiques where such can be clearly established. There would be no loss of revenue to the Exchequer because of the circumstances I have described in which antiques are now being traded in auction rooms rather than in antique shops.