Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy for the points he has made. Much of this has focused on where we are in respect of the agricultural contractor. The Deputies will be aware such contractors are excluded from this particular scheme because reliefs under section 664A of the Taxes Consolidation Act 1997 require a person to occupy farmland, which agricultural contractors do not. That is why they are not entitled to this particular relief. I accept the point made by Deputy Mattie McGrath. As we look at the future position in respect of carbon pricing, which will increase over time, we should assess this issue in the context of next year's budget and the preparatory work for next year's finance Bill. The reason contractors cannot avail of this particular relief is that their occupation is not included in the definition of "farming".

With regard to the point in respect of the rebate scheme, I supplied to the committee a note that explains how the scheme protects those involved in haulage from most of the effects of the change in carbon pricing. There have been many cases made to broaden or review the relief scheme we have in place. I do not believe we should do that. The rebate scheme currently in place is proportionate. The change in the pricing of carbon is being used as a lever to broaden the rebate scheme beyond its current design. I do not believe that is appropriate. The scheme in place is proportionate.

As I have said, the Department can have a look at the role of agricultural contractors and whether any changes need to be made in that regard in the run-up to next year's finance Bill. I do not believe they are merited in this Bill or in this year's budget but I am sure it will need to be assessed as the price of carbon increases over time.

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