Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Section 5 introduces a new tax credit for fishermen which is aimed at assisting the viability of the fishing sector and attracting and retaining workers in the industry. The tax credit is worth €1,270 and available to active fishers which I understand is a new gender neutral word to describe fishermen and fisherwomen who spend at least 80 days a year at sea engaged in fishing for wild fish or wild shellfish. The amendment seeks to delete the sunset clause for this tax credit which stipulates that it will cease to be available after 2021. It is good tax practice to insert sunset clauses into tax legislation, particularly in the case of tax reliefs. Such clauses, while not required to instigate a review of a particular tax relief, prompt such reviews as and when a sunset clause is due to be triggered. The Department of Finance guidelines on tax expenditure evaluation set out a five year time limit for reviews of tax reliefs that cost between €1 million and €10 million per annum. It is in this regard that the sunset clause to the end of 2021 was set. Reviews of tax reliefs allow us to consider whether they are meeting the objectives set for them, whether they are still relevant and required and whether changes might be warranted. That is the argument for including the clause, but, of course, the Department can always conduct a review after five years without a sunset clause. If the Deputy is particularly concerned about the issue, I can agree to the amendment.