Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

That is a very similar response to what we received on Committee Stage when we discussed the issue. The Minister's key concern seems to be that it would lead to other calls by other organisations which are not in a position to claim back VAT, and the area he has specified is sporting organisations. This is a legitimate point, but the response is that there is an opportunity to cap any rebate at a certain amount. I take some comfort from the fact that the Minister is not saying it is not possible to do this. What he is saying is that it could lead to other demands and he is anxious to protect the integrity of the VAT system which is, of course, a crucial source of revenue for the State. Charities such as the Society of St. Vincent de Paul and Concern collect money from ordinary people and use the money wisely.

We are talking about all the charities that we support and respect, acknowledging the tremendous work they do. There is an issue of equity, justice and fair play at the heart of this. The ordinary punter is putting a few euro into the bucket at a church gate or in a shopping centre but these people do not realise a slice of the money is going straight back to the Revenue Commissioners and the Exchequer by way of VAT when the money is spent by the charity to buy goods or services.

Will this or a future Government be prepared to introduce this scheme, which is capped and limited in scope but which has the ability to really improve the capacity of the charitable sector to deliver what it wants to for the end user, the people relying on those services? I can understand why the Minister is not prepared to move on it at this stage but I ask him to keep an open mind. We had the debate on Committee Stage and the measure will not be included in this Finance Bill, which is regrettable. The report of the special working group is a very important first step and it must be studied very carefully for potential. With this amendment, I advocate that the Minister take a further step to consider the potential introduction of such a scheme. I know the Minister is not willing to do so now but I will press the amendment.

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