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

I move amendment No. 99:

In page 91, line 33, to delete “1 January 2017” and substitute “1 January 2018”.

This amendment relates to the proposed amendment to the flat-rate scheme for unregistered farmers, which could result in a restriction in the flat-rate addition in some circumstances. The issue, as I understand it, has particular relevance to the poultry sector, which is very concentrated in geographic terms, particularly around the Border counties. It makes an important economic contribution to that part of the island in terms of employment, investment and so on. I would imagine that the issue here, identified by Revenue, is that the flat-rate addition is resulting in more VAT being refunded than is being incurred by the farmers concerned. The Minister might clarify if that is the thrust of where this is coming from but I am hearing from our Deputies in areas that are affected, and I am sure he is hearing it from his parliamentary party colleagues, that if this goes through as presently constructed, it will have a devastating and immediate effect on that sector. We dealt with this on Committee Stage and my understanding is that nothing happens automatically on 1 January 2017, that there may be a Revenue review into a certain sector and that if there was to be any change to the flat-rate addition for farmers or a particular sector, that would require a statutory instrument by way of secondary legislation. The Minister might clarify those issues but the amendment is proposing a deferral for one year to allow the sector to restructure its affairs and reorganise itself. I look forward to his response.

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