Brian Hayes (Dublin South West, Fine Gael)

Is this section an amendment to the principal Act in respect of the application of VAT to immovable goods provided by public bodies? I presume the measure extends VAT to local authorities' goods and services in respect of which no VAT applied heretofore. The Minister of State may correct me if I am wrong. It is an important issue.

The section deals with the capital goods scheme. In amending the principal Act, have the Revenue Commissioners and the Department assessed the likely financial imposition of the proposal on public bodies? I am aware of a case in my local authority area in respect of which VAT is deemed to apply based on decisions of the European courts. I am not exactly certain that the legislation applies in this instance. I am interested in hearing the rationale for the change the Minister of State is proposing to make to the principal Act.

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