Kieran O'Donnell (Limerick City, Fine Gael)

I would like to go into a bit more detail on that specific point. Those were the two points Senator Casey raised. They were also raised by Senator Rabbitte.

Senator Paul Daly spoke about the flat rate relating to farmers. I have a note from the officials. The Senator probably already knows this information but I will give it to him anyway. The rate is reviewed every year in the run-up to the budget in accordance with the criteria set down in the EU VAT directive. This is based on the macroeconomic data relating to agriculture inputs and production and the prevailing VAT rate structures averaged over the preceding three years. Revenue's calculation is based on data from 2023 to 2025 and indicates that full compensation can be achieved by reducing the rate to 4.5%. Overcompensation is not permitted under EU law. The change must be introduced in line with the relevant macroeconomic data. It is an empirical-----