Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

The difference is that the Coast Guard provides a service for which the State pays. In this case, as the charity does not have the competency to operate a helicopter, the cost and financial burden of meeting the relevant regulations would be phenomenal. It has therefore contracted a company from the UK to provide this service. As the company is based and registered in the UK, it is currently exempt from paying VAT. After the United Kingdom leaves the European Union, that company will have to re-register here in order to be licensed to fly in this jurisdiction, and will have to comply with Irish VAT law. As a result of that, the charity will have to pay an additional €500,000 for the cost of that service.

This is money that is fundraised in communities across the country. It is used, as the Minister knows, to provide a vital service that is needed. The ambulance service has not seen the investment that was long promised across the country. When smaller hospitals were closed, we were given numerous commitments about the provision of emergency ambulance services, which did not happen. Here we have a charity that is prepared to fill the void and fulfil a commitment given in the programme for Government. As a result of the UK exiting the European Union, it is facing an extra penalty of €500,000.