Paul Bradford (Fine Gael)

Senator John Paul Phelan is correct in conceding that his recommendation may be slightly too broad. However, we must focus on the typical situation in rural areas in regard to compulsory purchases of land. Senator Ryan raised the question of the amount of money which landowners receive in such instances. It is only through the discussions I have had in the past year with farmers whose land is being taken to construct the Fermoy and Watergrasshill bypasses that I realised how modest are the sums involved.

I am sure many of them have brought to the attention of the Minister of State that they are receiving little more than 50% of the rate received by farmers in the Youghal area three or four years ago. The sums have been adjusted downwards in a significant fashion and the compensation is insufficient to replace the land if it is purchased locally. In these circumstances, many of the farmers to whom I have spoken wish to purchase alternative land in order to maintain their scale of farming from an economic perspective. That they will lose 20% of the price they receive for the land is a serious blow.

We have had this debate before and the Minister of State has already given his response. However, he should indicate that he will consider the issue of agricultural land in a far more sympathetic fashion. I take on board Senator Mansergh's remarks regarding those located in or close to cities who are losing small quantities of land and receiving significant compensation. However, they constitute an entirely different case from those to whom Senator John Paul Phelan and I have referred.

The Minister of State must concentrate on farming families in rural areas who had no intention of ever selling their land but must do so in order to facilitate the development of social and economic projects. Nobody can object to such development. However, it is appropriate to examine the issue of capital gains taxation in regard to the moneys received by such landowners. I assure Senator Ryan that the moneys received are nowhere near as significant as I had expected. The net sum, minus the 20% capital gains tax reduction, will not allow these farming families to replace their land.