Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Minister's amendment is an improvement on what is contained in the Bill. He now proposes to reduce the threshold to €5,000, inclusive of VAT. One of the purposes of the scheme is to redirect activity away from the black economy to the mainstream economy. Much of the work will be labour intensive. If a significant element of the cost involves materials, the VAT issue will be of a different nature. However, the Minister has set the bar high by setting the threshold at €5,000, inclusive of VAT, for painting and landscape work. When it comes to jobs involving windows, doors and other such items, many people will fall short of the figure. I am curious to know how the Minister arrived at the figure of €5,000. Was it because administering a scheme involving lower sums would have been burdensome for Revenue? What is the logic behind choosing the sum of €5,000? On the surface, it seems high for a lot of small jobs that people might think of doing around the house, particularly where there is a strong labour element involved. In many cases, such work is done by contractors operating in the black economy.