Jim O'Keeffe
Question:17 Mr. J. O'Keeffe asked the Minister for Finance whether he has received any requests from the GAA to remove VAT on hurleys; if so, his views on this; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - VAT on Hurleys.
Many requests have been received from the GAA in the past, but not in recent times, for the removal of VAT from hurleys. Under the EC VAT Rates Directive I am precluded from applying any rate other than the standard rate to these items.
Is the standard rate of VAT 21 per cent? How long is it since the GAA requested that VAT be removed from hurleys? I recall when we were in Government there was tremendous pressure day in day out, culminating in a ban on Members attending matches. Did it evaporate as soon as we went out of Government and Fianna Fáil took office?
There was a new Minister for Finance.
Will the Minister confirm that the removal of VAT from hurleys would cost approximately £300,000.
First, I sympathise with Deputy O'Keeffe on his county's exit from the championship.
Does he want to improve the quality of the hurleys?
I am of Cork blood and I was also disappointed.
There is not a constituency in the country that does not have a drop of your blood lately.
As you know, a Leas-Cheann Comhairle, I have always had the double think — I support the Dublin footballers and the Cork hurlers and that keeps the parents happy.
I do not know the actual cost of removing VAT. Although the campaign went on for a number of years, sports equipment is not on the reduced list now. As it is not on the reduced list, there is no parking rate, and the Government has no option to do anything.
I acknowledge the Minister's sympathy on the unfortunate results of the match against Clare on Sunday.
Where does Deputy Bhamjee stand on this last question?
Having won the football we have to give Clare a chance in the hurling. We were subjected to huge pressure when in Government to remove VAT from hurleys. If the GAA in its wisdom decided to reactivate its campaign would the Minister be responsive to its approach if he could find a way around the EC legislation? Before the foolish ban was imposed, the then Government was at the point of making a concession to the GAA, but that is not here or there at this stage. It blew its chances with the ban.
I am afraid not. The argument that was then put, which I supported, was that if it applied to one it applied to all, rackets, golf sticks, basketballs and all other sports equipment.
They do not get broken.
Tennis rackets get smashed. Under the EC Directive on VAT, it cannot be removed.
I am amused that the Minister cites an EC Directive as the reason he cannot change the VAT rate on hurleys.
On any sports equipment.
Where else in Europe does the game of hurling flourish? In Central Europe? Why should some bureaucrat in Brussels decide that we cannot remove VAT from hurleys? Will the Minister reflect on what the then Deputy Michael O'Kennedy did when on this side of the House? He made very specific commitments to change this and he did not seem in any way encumbered by EC Directives?
The way the players from Deputy Yates' county beat my poor county players off the pitch with their hurleys last week I am not too sure if they could not be used in any war zone around the world.
It is not confined to hurleys — sports equipment of whatever kind is all on the standard rate of VAT. It would be very hard to reduce the rate of VAT on sports equipment when so many other desirable items, which are less discretionary purchases, are at the standard rate.
Deputy Yates would like to point out that the European Single Market in hurling is located entirely and exclusively within the boundaries of the State and for that reason might it not be open to the Minister——
The UK are involved as well.
——and by extension some parts of the UK. Would the Minister not accept that he might be in a position to define this as a cultural phenomenon and recategorise hurleys for VAT purposes and therefore not treat them under the sports equipment?
Timber products are at a lower rate of VAT.
I would not like to consider hurleys as ordinary timber products. Sports equipment is not at the reduced rate.