Mr. Tom Canning:

There is huge uncertainty on the VAT issue at the moment. Revenue has started to more strictly apply what it states are the existing regulations on VAT. It states that people cannot qualify for VAT reclaim on items that are not fixed investments, such as milking parlours and milk tanks. Are these really and truly not fixed investments? That raises the question about where the next phase of this will go and what will be disregarded for VAT reclaims in the future. When that level of uncertainty is hanging over farmers, are they inclined to invest in much-needed facilities on their farms? I doubt it.