Dáil Éireann díospóireacht -
Wednesday, 17 Jun 1998

Vol. 492 No. 5

Written Answers. - Waste Disposal.

John Gormley

Ceist:

87 Mr. Gormley asked the Minister for Finance the tax breaks or other measures, if any, operated by his Department to subsidise the disposal of phosphate intensive slurries as is done in other EU member states in view of the acknowledged effect that slurry spreading, particularly pig slurry spreading from large-scale intensive units, has on the phosphate levels in ground water supplies; and if he will make a statement on the matter. [14641/98]

Minister for Finance (Mr. McCreevy)

In response to representations from farming organisations, section 659 of the Taxes Consolidation Act, 1997 introduced an improved capital allowances scheme for farmers who incur expenditure on necessary pollution control measures. The scheme applies for three years from 6 April 1997 to 5 April 2000. A special year 1 allowance of 50 per cent of expenditure incurred up to an expenditure limit of £20,000 was provided for with the balance of the expenditure to be written off in accordance with the normal wear and tear capital allowance rules, namely, 15 per cent per annum for six years and 10 per cent in the final year. Section 38 of the Finance Act, l998, improved the relief by increasing the annual expenditure limit from £20,000 to £30,000 with effect from 6 April 1998.

To qualify for the scheme, a farmer must have a farm nutrient management plan in place. This must be drawn up by an agency or planner approved by the Department of Agriculture and Food. The plan must be either in accordance with guidelines issued by the Department or else accord with a plan drawn up under the Department's rural environment protection scheme — REPS — or Erne catchment nutrient management scheme and a copy must be lodged with the Department. The expenditure must be incurred on buildings or structures specified in the legislation and these must be certified by the approved agency or planner who has drawn up the farm nutrient management plan as being necessary for the control of pollution.

Section 268 of the Taxes Consolidation Act, 1997 includes in the definition of an industrial building or structure a building or structure in use for the purposes of the intensive production of cattle, sheep, pigs, poultry or eggs in the course of a trade other than the trade of farming. These buildings qualify for annual writing-down allowances of 10 per cent. This relief has been available since 1975.