Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

That is the key to it. Without stock relief, expansion is stifled. Without stock relief one will end up being unable to reinvest in the business. When one is trying to develop a dairy industry, the key is to use stock relief to grow the numbers reasonably quickly. This is the single most important taxation measure in place.

The two presentations today were very useful. I hope the taxation review body takes them on board because the suggestions in both presentations were constructive, productive and worthwhile. The key is to make land available to young people, but they do not necessarily need to own it. It was the tradition to own the land, but now one does not need to struggle to put the capital together to purchase land and then not be in a position to use the working capital to develop the business. Bar inheriting, winning the land or marrying into a farm, one could not get into land management. That is the key.

Short-term conacre is a problem in Ireland. It is unique to Ireland and is a major deterrent. Where somebody is thinking of retiring, is unsure whether he has a successor and wants to go into a collaborative or shared farming partnership for three or five years - I think five years should be the minimum - this provides the person who is trying to get on the farming ladder an opportunity to get started and move to a more permanent arrangement. I think there are very valid arguments for saying that the taxation treatment of income from both should be equal. It does not compel a person to get into long-term leasing to avail of the tax relief but we want that to be the ultimate goal if one does not have a successor. In the meantime we will allow a taxation incentive system for shorter-term arrangements. Both suggestions have merit.

We have invited other organisations to appear before the committee on 17 July.

I thank the witnesses for coming before us at relatively short notice. We consider it is important that before we make a submission to the taxation review body, we would hear from the main stakeholders, that is, the main farm organisations who represent both those who are trying to get into farming and the farmers who are thinking about retiring.

As there is no further business we will adjourn.