Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I cannot speak to a particular sector but this is just an enabling provision. Nothing is coming into effect from 1 January 2017 as it might pertain to a particular sector. The Revenue Commissioners might do a piece of work or carry out a review, and if the Minister is satisfied, following that work, that there are business structures, contractual arrangements or models employed within a sector that systematically achieve excessive VAT recovery, the Minister will make an order prohibiting payment of the flat-rate addition in respect of specified goods or services supplied by farmers in that sector. The farmers may apply and register for VAT to achieve a deduction in the normal way.

I understand the fear out there and I have had representations on it in so far as this will be something that will happen on 1 January for a particular sector. That is not the case. It is a general enabling provision if the Revenue Commissioners conduct a review. If the Minister is satisfied on the back of that review that this is happening in a particular sector, he will have the power at that point - next year or the year after - to make an order in this regard.