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

I thank the Minister for his reply. Listening to the reply it appears he has not made up his mind as to whether he believes this is the right direction in which to go. It is fair to say he has raised some concerns but he has a group that will now examine the option of introducing some form of VAT relief for charities in Ireland and I welcome that.

One point the Minister made was that many of the charities receive direct financial support from the State, which I acknowledge, but it is possible to design a scheme whereby the VAT rebate does not occur in respect of expenditure from the money they receive from the State and that the VAT rebate relates to the expenditure on the back of fundraising efforts and non-State sources of funding. That can be done. It is done elsewhere.

I respect what the Minister said. I will not press the amendment. I look forward to that work being advanced and I hope he will keep all sides of the House informed as to the progression of this issue because it seems there is broad consensus in the House that there should be some relief for the charitable sector in regard to its VAT liability.

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