Noel Ahern (Dublin North West, Fianna Fail)

The Tánaiste is sympathetic to the farming community and in his past three budgets he increased the capital gains tax retirement relief consideration threshold from €500,000 to €750,000. This exemption applies in the case of farmers aged 55 and over who dispose of their farms. In addition, where the disposal is to a child, there is no upper limit on the relief. This is a very generous provision which is aimed at enabling intergenerational transfers of family farms.

He also introduced a capital gains tax exemption in respect of farm land that was leased prior to disposal. This allows a farmer to qualify for retirement relief where he leases the land for up to 15 years prior to disposal, provided it is subsequently disposed of to his child.

In addition, the Tánaiste extended the relief from stamp duty for farm consolidation for a further two years to 30 June 2009 and also extended it to qualifying exchanges of land where only one farmer is consolidating his or her holding. He made changes to the stamp duty relief for young trained farmers and updated the education criteria and simplified the refunds procedure.

Changes were also made to the capital acquisitions tax agricultural relief in respect of off-farm principal private residences. Agricultural relief provides relief from capital acquisitions tax on 90% of the value of a gift or inheritance. To qualify, 80% of a farmer's total assets must be qualifying agricultural assets. This has been amended so that an individual can now offset borrowings on an off-farm principal private residence against the property's value for the purposes of the 80% test.

The Government continues to offer strong and sustained support to the agriculture sector. Support for the sector will continue at a very high level. Expenditure by the Department of Agriculture, Fisheries and Food is in the region of €3 billion per year. Farmers can plan for the future with the confidence that direct payments worth €1.3 billion per annum under the Common Agricultural Policy, CAP, are secure up to 2013 and that the EU will continue to be a strong supporter of rural development.

There is more material in this script, outlining the good things the Government has done for the farming industry. I cannot provide more information on the point made by Deputy Scanlon. We must wait until this night four weeks to see if the Tánaiste includes it in his budget. I understand the matter is known to the Department and lobby groups are highlighting it. I will convey to the Minister that the issue was raised.

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