Vol. 482 No. 8
57 Mr. Quinn asked the Minister for Agriculture and Food the discussions, if any, he has held with the Department of Finance in order to eliminate the anomaly which discriminates against and unfairly penalises inter-family leases under the farm retirement scheme; and if he will make a statement on the matter. [19471/97]
As the Deputy is aware, a participant in the farm retirement scheme who leases land under the scheme to a non-family member is exempt from income tax on the net rental profits arising under a lease up to a limit of £4,000 for leases of five to six years and £6,000 for leases of seven years or over. Any change in tax assessment on income from leasing of land to family or non-family members is a matter for the Minister for Finance and the Revenue Commissioners.
58 Ms McManus asked the Minister for Agriculture and Food the plans, if any, he has to encourage the greater entry of young people to the farming sector in view of the fact that Irish farmers are, on average, the oldest in Europe with the sector dominated by those over 55 years; and if he will make a statement on the matter. [19415/97]
I am aware of the problem referred to by the Deputy, however the scheme of early retirement from farming has proved very successful in assisting young farmers to take over holdings held by farmers of 55 and 66 years of age. Over 7,000 younger farmers have benefited from the scheme to date and it is my intention to have the scheme continued in future years.
59 Mrs. B. Moynihan-Cronin asked the Minister for Agriculture and Food if it is his intention to abolish the 50 per cent time and income clause in view of the fact that many farmers are seeking off farm work in order to maintain farm household income; and if he will make a statement on the matter. [19467/97]
I presume the Deputy is referring to the early retirement scheme from farming. It is a requirement of Council Regulation 2079/92 under which the scheme of early retirement from farming is implemented that in each of the ten years prior to the date of the final transfer of all eligible land the applicant must have obtained at least 50 per cent of his/her income from, and spent 50 per cent of time on farming or a combination of farming, forestry, on-farm tourism and crafts. In such cases farming must account for at least 25 per cent of the total income.
Currently over 7,000 farmers have availed of the scheme, which is well ahead of the anticipated target at this stage. It is clear that the full-time farming requirement has not had any significant impact on the uptake of the scheme. However when the current scheme is being reviewed it is my intention that this matter will be raised with the European Commission.
