John Perry (Sligo-Leitrim, Fine Gael)
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Question 139: To ask the Minister for Finance if he will take action with regard to the refunding of VAT on safety equipment which is now legally required for small open fishing vessels such as currachs and punts. [2513/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Fishermen who are registered for VAT are entitled to claim a refund for all VAT charged to them in respect of equipment used for their business. Fishermen who are not registered for VAT are entitled to claim back VAT charged to them as follows, under section 29, remission or repayment of tax on fishing vessels and equipment of the 1979 VAT regulations: VAT charged on the purchase, intra-community acquisition, importation, hire, maintenance and repair of seafishing vessels of a gross tonnage of not more than 15 tonnes, provided the vessel concerned has been the subject of a grant or loan from An Bord Iascaigh Mhara; VAT charged on the purchase of certain equipment related to the operation of a vessel which in the case of safety equipment would include: anchors, autopilots, bilge and deck pumps, buoys, floats, compasses, life boats and life rafts, marine lights, radar apparatus, radio navigational aid apparatus, radio telephones, provided the vessel concerned has been the subject of a grant or loan from An Bord Iascaigh Mhara.

There is no provision for relief on safety equipment, other than in the circumstances already set out. I have no plans to amend the VAT regulations that apply to unregistered fishermen.

Olivia Mitchell (Dublin South, Fine Gael)
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Question 140: To ask the Minister for Finance if the Government intends to provide tax incentives to users of rail freight to encourage this method of transport over road transport. [2700/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government has no intention at present of introducing a tax incentive scheme to encourage the use of rail freight over road transport. It should be noted that if a tax incentive were given to freight operators to use rail transport instead of road transport, it would appear to constitute State aid to a particular business sector to the detriment of another competing business sector. As such it would have to be notified to the EU Commission and it is unclear what the outcome would be.