Vol. 353 No. 8
asked the Minister for the Environment if it is his intention that tax relief will be given under the new land tax proposals to farmers who have between 20 and 80 adjusted acres and who borrow money for development purposes; and if he will make a statement on the matter.
12.
asked the Minister for the Environment if, under the recently proposed land tax for those in the category 20 to 80 adjusted acres local authorities as the collectors will be empowered to waive demands in cases of hardship from disease or financial difficulties; and if he will make a statement on the matter.
I propose to take Questions Nos. 11 and 12 together.
Legislation providing for a farm tax, as outlined in the national economic plan, Building on Reality, is being prepared in my Department and all relevant aspects will be considered in this connection. The Government will decide on the detailed scheme in due course and Deputies will have an opportunity to discuss the full proposals when the Bill is presented to the House.
Is the Minister aware that only weeks after the plan was announced many farmers are concerned as to what their position will be under the new scheme? Many farmers are in financial difficulties because of disease in their herds and it is time their minds were put at rest in regard to the scheme. Some of them fear that they will be faced with a big bill under the new arrangement.
The necessary legislation is being prepared. When it has been considered by the Government a scheme will be brought before the House for discussion.
Is the Minister in a position to outline the details of the scheme? Is he in a position to say if the problems of such farmers will be taken into consideration because, although they may be in the tax net now, they are not liable to pay any tax?
As the Deputy is aware, legislation must be approved by the Government before it is announced. There is little point in announcing any proposals which may not be approved by the Government. I am not in a position to make a statement until the Bill has been processed and approved by the Government. The House will have an opportunity to discuss all aspects of the land tax.
The Government must have had some idea of the tax yield and, consequently, must have taken into consideration whether they should recognise the problems of farmers.
We examined the position in regard to the expected yield. The details are a matter for a Bill which will be subject to Government approval. Members will have an opportunity of discussing the details later.
Will the Minister explain why in regard to a major piece of tax legislation it is being taken by the Minister for the Environment? Will the Minister agree that one would have assumed that this legislation in the normal way would have been prepared by the Minister for Finance? Is the legislation being taken by the Minister for the Environment because it will be a substitute for local rates which have been abolished? Will the Minister give me some information on the matter of adjusted acres? Will the Minister agree that the key to this tax proposal is the basis on which the adjusted acres are determined? Are we to take it that the system of measuring adjusted acres will be decided by the Department of the Environment in regard to this legislation?
The reason this legislation is being taken by the Department of the Environment is that it will be up to the local authorities to collect. That would be the normal position in regard to legislation dealing with local authorities. The tax is based on adjusted acreage and land will be classified according to its potential productivity. That is how the adjusted acreage will come about.
The Minister has not answered my question. Are we to take it now that this new tax will in fact be a form of local rates? Second, the question I asked him was: will the adjusted acres, or rather the format for deciding adjusted acres be a matter for the Minister for the Environment in the context of this legislation? There have been suggestions by the Minister that this work would be done by the staff of the Land Commission or perhaps by the Agricultural Institute. Are we now to take it that this key and very complex issue of deciding on adjusted acres will be done by the Minister for the Environment and his Department?
It will be done under the aegis of the Minister for the Environment, under the aegis of that Department. Its format, how it will be devised and who should do it are matters that will be teased out when the legislation has been passed.
If the Minister for the Environment is now the Minister in charge of this tax legislation — which I think will come as a very big surprise to many people — can he clear up one matter for me, that is, listening to the Taoiseach and others speaking about this tax, they have indicated that twice the existing revenue will be collected from farmers and, on that basis, that the tax is calculated to be roughly £10 per adjusted acre. Will the Minister confirm which will be the real objective? Will it be £10 per adjusted acre, or will it be to bring in twice as much money, whatever that may involve, as a charge per adjusted acre? Which will be the objective? Will it be twice the existing level of tax or will it be £10 per adjusted acre?
The Chair thinks that is a much wider question than the one on the Order Paper.
As announced, it will be £10 per adjusted acre.
That is what it will be?
Yes.
Whatever that may bring in?
Whatever that may bring in, yes.
If it does not bring in twice the existing level, too bad. In other words, it will be £10 per adjusted acre?
That is correct.
How will the Minister or his Department know the adjusted acreage?
It is crazy.
That is what I said — adjusted acres.
Who will set up the system of adjusted acreage?
That is precisely why it will not come into operation until 1986.
How then would the Minister or his Department know the number of adjusted acres involved or calculate the yield therefrom?
As the Deputy is aware, in regard to any such financial structure — whether it be the raising of money from tobacco, spirits or whatever — one project yields and there is a reasonable projection here. We are satisfied——
If the Minister can project adjusted acres he is very smart.
——that the yield about which we are talking will be got.
I should very much like to know the projected area of adjusted acres in the country.
