Dan Neville (Limerick West, Fine Gael)
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Question 7: To ask the Minister for Agriculture; Fisheries and Food if he has made representations to the Department of Finance with regard to the retention of tax relief on farm transfers and stocking for expansion and development; and if he will make a statement on the matter. [40603/10]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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It is long-standing Government policy to encourage young people to become farmers and substantial tax exemptions apply where young farmers acquire land by way of gift, inheritance or purchase, for the purpose of farming. Some of these are linked to training requirements to encourage expansion and development of a working farm. The tax reliefs include measures across various types of taxation, including income tax, capital acquisitions tax, capital gains tax and stamp duties.

I am regularly in contact with the Minister for Finance on a range of taxation matters of importance to farming, fisheries, forestry and the food industry, including those related to farm transfers and stock relief. Taxation policy is a matter for the Minister for Finance and any decision on these, and all other, tax issues is a matter for the budget.

Andrew Doyle (Wicklow, Fine Gael)
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On stock relief for expansion, the Food Harvest 2020 report envisages 50% growth in dairying. If people expand at that level and are not allowed to claim stock relief, they will end up with a paper profit that attracts a tax on money they have not made. It is essential to facilitate that growth that stock relief is continued.

The return on investment in farming vis-À-vis the value of land bears no relation to the reality. If we apply the norms to it, money will be tied up to pay tax and this will stifle expansion. The Government's own report recognises this a growth area.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I am aware of the importance of stock relief. When I meet farmers, particularly young farmers or those intending to hand a farm on to a younger family member, the importance of the scheme is often mentioned. This relief has been extended several times in the past and it is a matter for the Minister for Finance and the discussions that are ongoing on the budget.

I met the IFA and other farm organisations on the forthcoming Estimates and each organisation also met the Minister for Finance this week. I am sure they put forward their proposals on taxation when they had the opportunity.

Seán Sherlock (Cork East, Labour)
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We have all been lobbied by the IFA this week and this is one of the issues that has arisen. If we take the Deputy's point about the Food Harvest 2020 report, would the Minister acknowledge that one criticism of the document, which we support, is that if we are to achieve those targets, particularly in the dairy sector, there must be a major restructuring in the use of land and stock? To incentivise new blood into the sector, the reliefs must be continued and extended. Does the Minister agree with that point?

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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The points are well made by the Deputy, particularly on the importance of the Food Harvest 2020 report, which was drawn up by the stakeholders and endorsed by Government. The high level implementation group that I chair includes an Assistant Secretary General from the Department of Finance and the Department of Finance was also involved in the drafting of the report. My own colleagues in Fianna Fáil have outlined the importance of these issues at party meetings. The importance and value of these taxation measures to individual farmers has been conveyed to the Minister for Finance, as happens at this time every year.

Noel Coonan (Tipperary North, Fine Gael)
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The Ministers says taxation is a matter for the Minister for Finance but the Minister for Finance should listen to the Minister for Agriculture, Fisheries and Food. The Minister must show his commitment to the family farm, the cornerstone of farming in Ireland, bearing in mind we have already discussed the opportunities for food production for an increasing population. Will the Minister assure us the family farm will not be forced out of existence by tax impositions currently being considered? The farming community want a definite and absolute commitment that will not happen.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I do not know what commentary Deputy Coonan is referring to but the Government is well aware of the importance of the family farm to this country, and will continue to be mindful of that. That is how we will continue to support the sector.