This section relates to one of the recommendations of the agri-taxation review intended to encourage more productive use of farmland. The section in the Bill as initiated provides, subject to certain conditions, for relief from stamp duty to encourage the long-term leasing of land to active farmers. The amendments in my name increase the lease period from five to six years and provide that the lessee must be either a farmer who has a farming qualification or a farmer who spends not less than 50% of his or her normal working time farming. My amendments allow a farmer a period of up to four years to acquire a farming qualification. They also provide for the claw back of the relief if the conditions on which the relief is granted are not satisfied.

The recommendations of the agri-taxation review are to focus tax reliefs on encouraging the transfer of farmland to active farmers. In this context, the recommendation is that an active farmer is one who either has a farming qualification or who farms the land for not less than 50% of his or her normal working time. In either case, the farmer must farm the land on a commercial basis and with a view to the realisation of profit from the land. Deputy McGrath’s amendment does not necessarily meet these conditions because a farmer, as described in his amendment, could be engaged in farming in a minimal way and yet be within the charge to income tax under section 655 of the Taxes Consolidation Act 1997. For these reasons, I am unable to accept the Deputy’s amendment.

Deputy Doherty’s amendment proposes the substitution of a specific period of a 35 hour working week in the section. Many farmers, in addition to carrying on farming on a commercial basis and with a view to the realisation of profit, also have off-farm employment to supplement their farming income. Introducing a specific hourly requirement in the legislation as proposed in the Deputy’s amendment, allows no element of flexibility for genuine situations where that 35 hour period might not be satisfied.

My amendment No. 74, together with a guidance note that I understand the Revenue Commissioners will issue, which will specify that Revenue will accept that normal working time, including on-farm and off-farm working time, approximates to 40 hours per week, is a more flexible approach that adequately addresses the issue raised by Deputy Doherty’s amendment. This will enable farmers with off-farm employment to qualify for the relief provided they spend a minimum average of 20 hours per week working on the farm. Where anyone can show that his or her normal working time is somewhat less than 40 hours a week, then the 50% requirement will be applied to the actual hours worked, subject to the overriding requirement that the farm is farmed on a commercial basis and with a view to the realisation of profits. For these reasons, I am unable to accept Deputy Doherty's amendment.

I am informed that issues have been raised about this provision from a State aid viewpoint as the proposed relief is confined to farmland. Accordingly, amendment No. 78 provides that the section will be subject to a commencement order pending resolution of any State aid issues. We discussed this issue fully when Deputy Naughten raised it under a previous section. Deputy Ó Cuív participated in that debate. I am willing to go through it again but I am simply pointing out that we did discuss it fully earlier. I stand corrected in that four years rather than three years is provided for in respect of the time a farmer is allowed to obtain a qualification.