Vol. 535 No. 5
150 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he will facilitate the temporary deferment of PRSI-PAYE payments to avoid immediate enforced redundancies in the tourism sector; and if he will make a statement on the matter. [13129/01]
As I indicated in my response to Question No. 46 on 3 April, I recognise that significant difficulties are being experienced by certain sectors of the economy as a result of the foot and mouth disease crisis and I am sympathetic to their plight. I am aware that there have been calls for assistance from the Government by particular sectors. However, 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 disease 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 disease crisis has extended beyond the sectors and geographical areas most immediately affected and any general tax measures would inevitably encompass a very large number of cases. Many of these taxes such as PRSI-PAYE 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 am advised by the Revenue Commissioners that they are fully aware of the particular difficulties that face certain sections of the community because of the foot and mouth disease restrictions. As part of normal practice, Revenue would be prepared to look sympathetically at payment arrangements in individual cases where temporary cash flow problems have been experienced as a result of these restrictions. Revenue is prepared to discuss an individual case with the taxpayer concerned with a view to agreeing an acceptable approach to overcome a payment difficulty. In practice this could, for example, be an agreement to pay the liability through an instalment arrangement or accept payment in a single sum at a later date.
It is important to emphasise that a taxpayer who has difficulties in meeting tax payments for income tax, PAYE-PRSI or VAT should not ignore demands for payment but should instead make timely contact with Revenue to explain the circumstances and to settle appropriate payment arrangements.
As for individual employees who find themselves laid off as a result of the foot and mouth disease 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.
