Dinny McGinley (Donegal South West, Fine Gael)
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Question 106: To ask the Tánaiste and Minister for Finance if the planned amendment to the tax code, as announced in budget 2008, to assist in maximising the take up of the decommissioning payments for the white fishing fleet will be extended to drift and draft net salmon fishermen where traditional fishing rights were terminated in 2007. [34482/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I indicated in my Budget Statement that the tax code will be amended to assist in maximising the take up of decommissioning payments and full details will be provided in the Finance Bill. There are no plans to extend these provisions to other sectors.

The Minister for Communications, Marine and Natural Resources established a Hardship Fund of up to €25 million to address the hardship likely to be experienced by commercial salmon fishermen affected by the Government decision to align the wild salmon fishery with the scientific advice from the Standing Scientific Committee of the National Salmon Commission for 2007 and beyond.

In relation to the drift and drift net salmon fishermen, payments from the 'Hardship Fund' are taxable on recipients as income in the year of receipt. Commercial fishermen have to include any payment received from the Fund as a receipt in their accounts. However, part of the payment, which is calculated at six times the value of the 2006 licence fee, is not liable to tax. The balance is taxable at marginal income tax rates subject to the normal tax credits.

To facilitate recipients wishing to spread the taxable amount over three years, eligible applicants can opt under the Scheme to receive their payment in one sum or alternatively in three equal amounts over a three-year period.