Dáil Éireann Debate, Wednesday - 7 July 2004
176 Mr. Ferris asked the Minister for Finance if consideration has been given to the introduction of grants of tax breaks to encourage local food markets and the production, distribution and sale of food under the Fairtrade mark. [20673/04]
Amharc ar fhreagraI am taking it that the Deputy is referring in the first instance to farmers' markets that have become increasingly popular venues for local producers of foodstuffs to promote and sell their produce. I have been informed by the Minister for Agriculture and Food that Bord Bia, the food State agency, is active in promoting and encouraging this route to market for small producers. In 2002, Bord Bia was instrumental in promoting this concept when it staged Ireland's largest ever outdoor foodmarket on the farmers market style for 110 small food producers at its international food symposium in Kinsale. Since then and in partnership with the OPW, Bord Bia has run a farmers' market in Farmleigh for nine weeks from September to October 2003 attracting more than 35,000 visitors who bought produce direct from stallholders. I have been informed that Bord Bia is planning a further Farmleigh market later this year and is in discussion with the OPW about appropriate expansion of farmers markets on OPW sites. Bord Bia has also dedicated a section of its website to the promotion of the farmers markets concept which includes a list of farmers markets in Ireland and a online leaflet offering practical advice on setting up such markets. It is my view that this approach, which involves the promotion of farmers' markets through the dissemination of information and practical advice rather than the introduction of tax incentives, is a more appropriate and effective measure in promoting the development of this route to market for such producers.
With regard to the request for tax incentives to encourage the production, distribution and sale of food certified under the Fairtrade mark it should be pointed out that the sale of such food like all food attracts a zero rate of VAT. While the Deputy has not made it clear what type of tax incentives he is seeking, it should be borne in mind that foodstuffs certified under the Fairtrade mark are increasingly sold and distributed by a wide range of enterprises rather than speciality shops and enterprises that deal exclusively in Fairtrade mark products. The introduction of a separate tax treatment on the profits accruing from the sale and distribution of such goods would introduce an inordinate level of complexity into the tax code for the taxation of profits of retail and food distribution undertakings and inevitably lead to calls for similar treatment from other sectors. In addition, this would amount to a lower rate of tax on such profits and would thus not be allowed under EU State aid rules. For all these reasons there are no plans to change the tax treatment of profits accruing from the production, distribution or sale of such goods.
