John Perry
Question:314 Mr. Perry asked the Minister for Finance the reason seafarers allowance is not awarded to all merchant fishermen; and if he will make a statement on the matter. [26148/06]
View answerTuesday, 4 July 2006
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Written answers
The seafarer's allowance, which is provided for under section 472B of the Taxes Consolidation Act 1997, applies to the shipping industry and under EU rules constitutes a State Aid. The allowance of €6,350 at the marginal rate applies to seafarers who are at sea on a voyage to or from a foreign port for at least 161 days in total in a tax year on a passenger or cargo ship which is registered in an EU Member State's shipping register. Other EU States have a similar concession.
The EU has exempted the shipping industry from certain State Aid provisions and has published guidelines (OJ C 205 of July 1997) to this effect. There is no similar exemption for the fishing industry and the extension of the seafarer's allowance to merchant fishermen would breach the EU guidelines.
Leaving the State Aid issue to one side, I should point out that since the introduction of the Seafarers Allowance in 1998 a number of groups have sought the extension of the allowance or the introduction of a similar tax allowance. Such a concession for the merchant fishermen as suggested would almost certainly lead to claims from other workers for similar treatment.
The Deputy will appreciate that tax reliefs no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult. Accordingly, I have no plans at this stage to extend the seafarer's allowance to merchant fishermen.