Vol. 401 No. 6
15 Mr. Barry asked the Minister for Education if, in view of (a) the importance of sport in the character development of children, (b) the importance of hurling as a national sport and (c) the high cost of hurleys, she will make a grant available to hurling and football clubs to offset the VAT element.
The Gaelic Athletic Association receive a grant from my department on an annual basis for expenditure on the development of the national games at under age level. In 1989 this grant amounted to £90,000.
Additionally, a grant of £100,000 was allocated to the Gaelic Athletic Association in 1989 for expenditure in a subsidy scheme for the cost of hurleys and helmets. This grant was paid in January 1990. This scheme was administered by the Gaelic Association through primary, post-primary and third level schools.
Does the Minister appreciate that many of the hurling and football clubs are under severe financial strain at present and that at least one hurley manufacturer is in serious financial trouble and is in danger of going under because of cash flow problems and the payment of VAT? Undertakings were given by individual Members of the party opposite when in Opposition that as a matter of policy when they got into Government they would remove the VAT from hurleys. Many clubs undertook expenditure on the expectation that Fianna Fáil would actually keep their word. The Minister, of course, as usual is flippant and dismissive of anything to do with sport. I can assure her that this is a very serious problem for many families.
One of the Deputy's colleagues was making a sign to me and I was doing it back to him.
Please, this is Question Time.
I think it is much more serious.
So do I. The Deputy should look behind——
The Minister must have had——
It is like this every day.
The cost of a hurley is very high and the VAT rate is rate is 23 per cent. One of the factories which manufactures hurleys is in serious financial difficulties.
We must proceed supplementary questions.
I was interrupted, Sir.
Deputy Barry is making a statement.
Does the Minister accept that when Fianna Fáil were in Opposition, many hurling clubs and followers of hurling took them at their word when they promised that when in government they would remove the VAT from hurleys? Does she also accept that these people undertook expenditure on the basis they would have this money available, but, it is not? While the Government have given a grant towards the cost of hurleys, it is not nearly sufficient to save the factory or the clubs.
I think the Deputy has made his point.
I agree with the Deputy in relation to the cost of hurling and the significant reduction in the numbers of juvenile hurleys which have been purchased, and this is the cause of concern to everybody. However, in relation to the proposal to remove VAT the present Government looked at that proposal and found, because of EC constraints, it was not possible to do so.
That is not so.
I examined that matter, and that is not so.
Please Deputies, questions have been asked, let us hear the Minister of State's reply.
Deputy Bruton certainly did not do anything about it.
I made no promise but I did investigate it and the Minister is not correct in what he said. The Minister for Finance gave the same response to a written question last week.
I made no promises.
I propose to proceed to another question.
May I finish? I did not interrupt Deputy Barry. When it was found that it was not possible — and I will give the evidence to the Deputies if they require it — to remove completely VAT from hurleys, the Government decided to give a grant in lieu of the amount of money which the GAA said was being paid to the Exchequer for hurleys of approximately £100,000. On top of the normal grant given to the GAA, which is the largest grant given to any governing body of sport, the Government gave £100,000 last year, and the same amount this year, in order to implement a very successful scheme, which has been applied to helmets as well as to hurleys. I am glad to tell the House that this has had a major impact on lowering the price of hurleys, beginning once more to put hurleys into the hands of young girls and boys at a very reasonable price in comparison with what had obtained.
I might add that I am aware of and concerned about the factory to which Deputy Peter Barry referred and the difficulties they are experiencing. We are prepared to make every effort, together with the GAA, to ensure the manufacture of hurleys in this factory, if that is what the GAA wish.
Deputy Deenihan, a brief supplementary——
A Cheann Comhairle, may I ask——
Deputy Deenihan has been called and the Chair will be obeyed.
I always obey the Chair. I do not like that aggressive tone, a Cheann Comhairle. I did not know the Deputy had offered.
The Deputy should restrain himself.
So should the Chair.
Deputy Deenihan.
I might point out to the Minister that the revenue from VAT on hurleys — in respect of their manufacture and sale — is in the region of £350,000 and not £100,000.
On hurleys for juveniles?
I am talking right across the board.
The GAA only requested the removal of VAT from hurleys for juveniles.
Why not implement a preferential rate of VAT on hurleys? If the Government cannot see their way to a zero rate why not reduce it to, say, 10 per cent?
Or 1 per cent?
Because the Government want to reduce the present number of VAT levels rather than increase them.
Would the Minister accept that if the grant is as valuable as he says the factory to which I have referred would not be experiencing financial difficulty this year and would not have to resort to a members' draw for a commercial undertaking in order to ensure that one of our national games is played by young people?
It is quite clear that the difficulties being experienced by this factory are more complex than Deputy Barry would lead us to believe.
That is not so.
I am quite satisfied — from the information I have received from the GAA and others — that their problems are much more complex, that the removal of VAT from hurleys for juveniles would do very little to improve the overall position.
It will be saved by the supporters of the game, not by the Government.
I hope Deputy Barry's fellow countymen show the same aggression against Tipperary on Sunday next, as he is showing here, when there should be a great game.
It will be controlled and, I hope, a lot more productive than have been the Minister's answers here today.
(Carlow-Kilkenny): I am not going to shout “up Cork” in case Deputy Barry thinks I am. Would the Minister agree that, in fairness, the campaign launched when he was in Opposition — when his party supported that campaign vehemently — was for the removal of VAT from all hurleys; the removal of VAT from hurleys for juveniles would be of no significance? The campaign was for the removal of VAT from all hurleys, just like VAT on motor cars. I spoke in the Seanad in favour of the removal of VAT on hurleys. After all it is our national game and we should take a stand on the matter. We should not pretend that clubs paying up to £6,000 annually on hurleys——
We cannot debate this matter today, Deputy. This is Question Time.
(Carlow-Kilkenny): The Minister of State should take this matter seriously. His answer did not hit the nail on the head.
It has not proved possible to remove VAT, as Deputies have suggested——
Why not apply a preferential rate of VAT to them?
The equally positive steps taken to provide a grant in lieu have proved to be very satisfactory countrywide.
