Vol. 548 No. 5
195 Mr. Deasy asked the Minister for Finance if he will consider the introduction of tax relief on the sale of beet quotas similar to that which was granted with the sale of milk quotas; and if he will make a statement on the matter. [4120/02]
There are no proposals for the introduction of capital allowances for the purchase of sugar beet contracts. The purchase of sugar beet growing contracts does not involve a transfer of quota as is the case with milk quota. The milk quota restructuring scheme was introduced on foot of EU directives and a Department of Agriculture, Food and Rural Development policy initiative for national agricultural policy reasons. A sugar beet contract restructuring scheme was put in place in 2000 by agreement between Irish Sugar plc and the Irish Farmers Association. Under that scheme a grower who wished to surrender a contract could nominate another grower to take the contract. If Irish Sugar plc agreed to the nomination, a portion of the tonnage involved would become available for reallocation.
The operation of the scheme is a matter entirely for the company and the growers and the Minister for Agriculture, Food and Rural Development has no function in the matter. The purchase payments in question are not in respect of an actual purchase of a quota but are paid by individuals to other individuals in respect of nominations for sugar beet growing contracts. There is no actual transfer of quota involved in these transactions and for all these reasons I have no plans for the introduction of capital allowances for the cost incurred in securing the transfer or otherwise of sugar beet growing contract nominations.
