Ms Niamh Brennan:

Under the Valuation Act 2001, horticulture and agriculture are exempt from commercial rates. However, there has been an increase in sections over the last four or five years since I have been involved in it and it seems to be concentrated in regional areas. Cork, parts of Dublin and Wexford hard seemed to be affected most. Last week, we met the Minister of State, Deputy O'Donnell, and one of the questions he asked us is what the trigger for this is. Why have inspections increased? Our opinion is that it is a monetary value to see big sheds coming up. Big sheds and big square footage come with a big cost. Nothing has changed. It is still primary production. For farmers storing potatoes, the valuation people on the other side would argue that processing is taking place or value is added. That is not the case. The potatoes are being stored and is actually losing value in the shed; the farmers get less money by the time they are sold. There is no fundamental change.

The European definition of processing requires a substantial alteration of product. It definitely does not take place. There is no chipping or peeling; it is the same product that comes out of the shed. The 2003 food regulations were updated and in order to sell to retail, a potato must be whole, clean and wholesome, and free from rot. There is nothing to suggest that anything has changed and that these products should be rateable. It is definitely something we would like the committee to take up as to why the number of inspections is increasing. From our point of view, farming has moved on as has everything because of retailer specifications, requirements etc., but it is still the primary product that is being put on the shelf.