Oireachtas Joint and Select Committees

Tuesday, 27 September 2016

Joint Oireachtas Committee on Agriculture, Food and the Marine

Brexit: Discussion with Mushroom Industry

5:00 pm

Mr. Micheál McGovern:

Yes. It was based on a sample of farms. We concentrated on the 8.5% because it was a measure introduced in the period 2010-2011. It was seen as a means by which we would get funding into the sector quickly, particularly if it could be implemented. I am aware that there is an issue - from an administration point of view - whereby any change in PRSI rates must apply to a wide range of sectors to which the relevant tax band applies. I suggested earlier that we should perhaps be looking at sectors which export 80% or 85% of their produce to the UK as a reason for their being supported. Yes, it will take the 10.5% rate, and it still needs to be "boxed-in" - if I dare use the term - to try to get a way where we can funnel this other rate of PRSI into the exporting sector. Of course, it will take more than the 8.5% to do it but there is a precedent in this regard. That is one measure by means of which we could get funding quickly. That is the real reason we are doing it. The other measure must come after.