Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein) | Oireachtas source

I want to raise a matter to ask for the Tánaiste's support and intervention in respect of it. The matter pertains to the Finance Bill 2014 and was brought to my attention subsequent to that Bill's passage through this Chamber. The Bill is currently before the Seanad and my constituency colleague, Senator Reilly, will address the matter in her contribution to today's debate on Second Stage. We will seek to amend the Bill because the matter is of considerable concern even though it escaped our collective attention in its passage thus far.

I refer to section 74 of the Bill, which deals with capital acquisitions tax. We support the principle of encouraging active farming and active farmers. However, the provision in this section would mean that from 1 January 2015 - which is just over three weeks away - we will see a situation whereby, on the demise of the parents who actively farm a particular holding or if the holding is gifted, the inheritor or acquirer would have to be in a position to continue actively farming the holding for a period of six years or to lease it out for a period of not less than six years. This is absolutely sound but the area that has been missed in our collective address thus far is the impact on members of the diaspora.

I speak based on first-hand engagement with families in my constituency, which is made up of small to medium holdings. They are not members of the rancher class by any means. There is real concern for the position of intended inheritors who plan to take over the farming enterprise but are forced to find work in the United State, Australia or New Zealand because there are no employment opportunities at home. The requirement is that 50% of the farmer's time should be spent actively working on the farm. The option of 50% off-farm work has not been available to countless thousands of young people from a traditional farming background for the past decade, in particular. The provision in the Bill as it stands means that many of these people will not be able to take up active farming immediately. If they were to opt for the lease approach, the Bill requires them to lease it out for a period of not less than six years. Certainly in the cases of which I have experience, it was always the intention of the individuals concerned to return in a couple of years' time. There is no interchangeability between the lease requirement and active participation in farming. These individuals are part of the diaspora because of the economic circumstances in which we found ourselves and, as a result, they were left out of consideration. The consequences of this will be dire. They are facing the introduction of a tax rate of 33% on their inheritance in just over three weeks' time. I ask the Tánaiste to intervene with the Minister for Finance. We will submit amendments but there will be greater certainty if the Government is willing to offer its support.

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