John McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I have listened to farmers argue about this. They say that the expectation regarding the cost of this was that the VAT would not be a burden on them. You describe the modernisation of farm buildings, machinery and methods of farming. I could take you to farms in north Kilkenny where they are way behind the curve in relation to this. They are disappointed that they are not going to benefit from the return of this VAT figure. What they were doing was constructing a new method of managing their dairy farms. Therefore, it was construction. The fact that they had to replace a tank with another tank is part of the new standard of construction. Those who are on the flat rate would argue that they should still be entitled to it. This is causing quite a lot of pressure within single-farm operations, particularly farming families. They understood by example from the past that they would get it back. The expectation was that the scheme or way was still in place. In some cases, they were advised by their farm advisers that this would be covered. Now they cannot understand why - in their minds - a new construction around the methodology or machinery of farming is not considered in the same way as the original. They are being encouraged to do this, and not just by the Department of Agriculture. They are also being pressed by Europe. If they take the option of doing nothing, they will end up with farms that are completely outdated. It causes a financial burden. On the farms I visit and see, there is still an awful lot of hardship and very little markup or profit when everything is factored in. I do not know how they manage the reporting, for example, because it is essentially secretarial work. Farming is heavily burdened by bureaucracy and reporting. If they are to develop their farms, this is essential for them. I can tell you that they are angry about what they see as a new decision or a departure from the old decision. That is how they see it. It has not been explained very well to them. Even when one is asking parliamentary questions or querying verbally why it is not covered, one gets very poor explanations not just from Revenue but also from the Department of Agriculture. Why they were led into this belief in the first place is just beyond me.