Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Senator is seeking to abolish tax relief for loans to acquire an interest in a farming partnership. There are challenges in the farm structure in terms of age profile, farm size and skill set. Increasing the number of farmers working in partnership can help to overcome these challenges. The agrifood and fisheries sector is Ireland's largest indigenous industry which collectively employs more than 160,000 people. Bord Bia estimates that in 2011 the sector accounted for more than €9 billion in exports to over 160 export destinations. The stated Food Harvest 2020 goal is to increase this export value to €12 billion by 2020. Despite the size and importance of the sector, there is an information gap in relation to the amount of the tax relief being received by the sector versus the return in terms of taxes paid. The Department of Agriculture, Food and the Marine, Teagasc and the Revenue Commissioners all have large amounts of data relating to the industry, but it has proved difficult to match it all up in a way that enables informed policy evaluation and consideration of proposed measures.

In line with the Department of Finance's policy to review all tax expenditures on a regular basis, in conjunction with my colleague, the Minister for Agriculture, Food and the Marine, I announced in the Budget Statement that I would be commissioning a review of the tax reliefs available to the farming sector. The purpose of the review will be to assess the costs and benefits of various agriculture tax expenditures with a view to ensuring the maximum benefit to the sector and the wider economy is obtained. The overall objective is not to change the level of Exchequer support to the sector through the tax system but rather to maximise the benefit to the economy from the existing level of State support. Any recommendation will be considered in the context of budget 2015. There will be an opportunity for farmers and all those involved in the sector to give their views once the review process is launched in 2014. In the context of the overall review, the provision of this relief for farming partnerships will be examined. I would welcome a submission from the Senator on this matter or on any other tax expenditure applicable to the agrifood industry.