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Dáil Éireann debate -
Tuesday, 3 Apr 2001

Vol. 533 No. 6

Written Answers. - Tax Reliefs.

Breeda Moynihan-Cronin

Question:

50 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he has any proposals, by way of temporary tax reliefs or other measures to assist those sectors, such as tourism and services, which are facing severe economic difficulties as a result of the foot and mouth crisis; and if he will make a statement on the matter. [9736/01]

I recognise that significant difficulties are being experienced by certain sectors of the economy as a result of the foot and mouth crisis and I am sympathetic to their plight. I am aware that there have been calls for assistance from the Government by particular sectors. I do not see it as appropriate to introduce general compensation measures for all sectors and individuals whose activities may be affected by the foot and mouth crisis.

As regards some of the suggestions for temporary tax reliefs, I believe that it would be difficult to consider relieving any sector of the legal requirement to pay taxes owed to the Exchequer or agreeing any general postponement of the collection of taxes for certain sectors. The impact of the foot and mouth crisis has extended beyond the sectors and geographical areas most immediately affected and it could be argued that any general tax measures would inevitably encompass a very large number of cases. Many of these taxes such as VAT or PRSI are collected by individual businesses on behalf of the State. Any general short-term relief would also create long-term difficulties for businesses which would have to pay both their ongoing and arrears of taxes when the crisis has abated.

I understand that in so far as particular cash flow problems arise for individual businesses Revenue does as part of normal arrangements look sympathetically at payment arrangements on a case by case basis in individual cases where problems are being experienced as a result of a cash flow crisis suffered by the business.
As for individual employees who find themselves laid off as a result of the foot and mouth crisis, whether these individuals are employed in agriculture and related areas or in sectors indirectly affected by the crisis, such as tourism, any such employees are entitled to claim unemployment assistance or unemployment benefit as appropriate. Similarly, any farmers who are experiencing income difficulties as a result of the crisis can claim farm assist, the means-tested scheme of income support for low-income farmers. In regard to these schemes, I understand that my colleague, the Minister for Social Community and Family Affairs, Deputy Dermot Ahern, has ensured that any such claims within the County Louth area, which is the area most directly affected by the crisis, will be processed as a matter of urgency.
I am making some funds available to my colleague, the Minister for Tourism, Sport and Recreation, Deputy McDaid, to assist Bord Fáilte Éireann in an overseas marketing campaign, in response to the difficulties being experienced by the tourism industry as a result of the foot and mouth crisis.
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