I appreciate what has been said here and the representations which I received in regard to timber and I share the views of many people that timber should get special treatment. Timber has received special treatment under the Government's package of capital taxes as a result of which timber is exempt from wealth tax or capital gains tax. In other words, no capital tax will be payable while the timber remains in the hands of an owner, and it is only when timber is received gratuitously by a person by way of gift that an occasion to payment of capital gains tax could arise. In most cases, if not in all cases, the actual tax paid will be less than similar woodlands would have generated under the estate duty code.
One must bear in mind that woodlands are not planted all together at the one time. There is constant changing of cuttings and seedlings and so forth. So the appropriate value to take is market value.
As Senator Russell has accepted, agricultural property means woodlands. In relation to woodlands an amendment I tabled in the Dáil confers on any recipient of woodlands the same benefit as applies to agricultural property where it succeeds to a person who is engaged in agriculture. It does not even require that a person should be engaged in agriculture to get the benefit of the special treatment for woodlands.
Therefore the application of the agricultural advantages to timber is a significant measure of relief. The market value of growing timber will reflect the stage of growth and the risks of weather, damage and disease and so on. In the estate duty field timber was valued separately but it was not taxed until sold. The House is right in saying that. If sold its market value up to the value at the date of death was taxed at the same rate as the rest of the estate, which in many cases was quite considerable when we bear in mind that most private woodlands in this country are held by people of very substantial means. It meant that there was extortionate rate of tax ultimately payable whenever the wood was sold. In view of the lighter tax burden under the capital acquisitions tax the simpler method of taxation at market value at the valuation date and with the benefit of the 50 per cent agricultural deduction will mean that timber will be dealt with quite equitably. On reflection, I think that people will see that it is an asset which is being comparably lightly treated under the whole taxation code.
However, I assure the House that I will keep a careful watch on this matter, having regard to the fact that the national interest, both economically and from the point of view of the environment, is well served by continuing to maintain the growth of privately owned woodlands.