Michael Ferris
Question:2 Mr. Ferris asked the Minister for the Marine and Natural Resources the proposals, if any, his Department has to remove the burden of rates from fish farmers; and if he will make a statement on the matter. [19192/97]
Ceisteanna — Questions. Priority Questions. - Fish Farm Rates.
I am fully aware of the concerns of the aquaculture industry in relation to the imposition of rates on land based fish farms under the Valuation Acts. This primarily affects salmon smolt and trout producers. However, with the ongoing development of the industry new land based projects such as holding and purification facilities for shellfish as well as eel and turbot facilities are coming into the net also. I am sympathetically disposed to the case made by the industry to be given parity of treatment with the agriculture sector. I am also aware that fish farmers in Northern Ireland and Scotland do not pay rates. This can create a competitive disadvantage for our industry in the EU marketplace. Since taking up office I have been pursuing the issue with my colleague, the Minister for Finance, with a view to obtaining a satisfactory resolution.
I congratulate the Minister and the Minister of State on their ministerial appointments. I appear to be following the Minister from one Department to another in terms of marking him. I thank the Minister of State, Deputy Byrne, for his commitment to the removal of the iniquitous tax applied to fish farming because it is one of the only primary food producing industries subjected to that form of tax. Is the Minister of State aware that up to 3,000 jobs are dependent on the survival of this industry? Is he also aware that unlike similar industries in the UK, Norway and other countries on the Continent, it does not receive subsidisation? Will he agree that if he were prepared to make this change he would honour a commitment given by his party to the IFA before the last election? It is important to fulfil what has been promised, particularly having regard to the disadvantages to which this sector of the primary food industry has been subjected.
I thank the Deputy for his congratulations and good wishes and no doubt we will see much of each other. I am conscious of the job levels in the industry. I am also conscious of the Deputy's point concerning our commitment to the removal of rates. I wrote to the Minister for Finance a week ago and the letter I received from him states:
Under existing valuation legislation, fish farms are considered rateable and it would require amending this legislation to remove the burden. You may be aware that the draft heads of a Valuation Bill are at an advanced stage of preparation in my Department. The purpose of the proposed Bill is to modernise and streamline the valuation code. I have already indicated that I intend to consider the issue of rates on fish and shellfish farms when the draft heads of the Bill are being finalised. It is hoped to be in a position to circulate a draft Memorandum and heads of a Bill to all Departments in the very near future.
The IFA's Fish Farming Section has been actively campaigning for me to grant an exemption from rates to fish farmers in the forthcoming budget. Because of the constitutional constraints to do with local government revenues, it will not be possible for me to consider this question in the context of the budget.
The Minister of State has confirmed the removal of rates will follow the legislative process. Under the 1986 Valuation Act fish farming was not included in the provision dealing with agriculture, horticulture, forestry and other sectors. Apart from the parliamentary procedure followed in terms of consulting the parliamentary draftsman's office and heads of Departments, can the Minister of State indicate when the Bill will be published?
I cannot guarantee when the Bill will be published, but it is at an advanced stage and I am confident it will be introduced in the near future. I assure the Deputy and the former Minister, who had a particular interest in this area, that I will vigorously follow up this matter.