Vol. 539 No. 2
54 Mr. Crawford asked the Minister for Finance if the tax relief promised through the Programme for Prosperity and Fairness for farmers who are purchasing a milk quota will be supplemented; if so, when; and if he will make a statement on the matter. [18566/01]
100 Mr. McGuinness asked the Minister for Finance if agreement was reached within the Programme for Prosperity and Fairness to allow farmers who purchase a milk quota to offset the cost against their tax returns; if this agreement requires European Union approval; the reasons for the delay in implementing the agreement; and if he will make a statement on the matter. [19255/01]
I propose to take Questions Nos. 54 and 100 together.
The Finance Act, 2000, included provisions, subject to a commencement order, for the introduction of a special scheme of targeted relief in respect of the purchase of milk quotas under guidelines to be issued by the Minister for Agriculture, Food and Rural Development for the introduction of the milk quota restructuring scheme. It was subsequently considered that the commencement order should be delayed pending the result of a High Court challenge to the scheme. The judgment of the High Court was appealed to the Supreme Court with the decision of the High Court in favour of the Department of Agriculture, Food and Rural Development being upheld by the Supreme Court in a ruling on 30 March last.
With the introduction of any new scheme of this nature, European Commission rules on State aids must be respected. It has emerged only recently that the Commission has decided to open proceedings under Article 88 (2) of the EC Treaty against the Spanish authorities in respect of the operation of an interest rebate scheme for the purchase of milk quotas. In the circumstances, it is considered that the commencement order should not be signed until clarification on the matter has been received from the Commission. Officials from my Department, working jointly with officials of the Department of Agriculture, Food and Rural Development, have submitted papers on the scheme planned for implementation in Ireland to the Commission. A meeting is taking place today in Brussels between Irish and Commission officials to discuss the matter.
