Michael Creed (Cork North West, Fine Gael)
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Question 98: To ask the Minister for Finance if his Department will extend the same tax allowances to the woody biomass crops as are available to forestry; and if he will make a statement on the matter. [17411/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The current tax package for forestry provides that income from woodlands are exempt from income tax and corporation tax. In addition, gains arising to individuals and certain trusts on the disposal of felled timber are not chargeable to capital gains tax. Forestry is regarded for VAT purposes as an agricultural activity. As regards stamp duty, there is an exemption on the value of trees where it can be certified that the land being transferred contains commercial woodlands on a substantial part of those lands. The tax treatment of forestry investment is based on the premise that such investment is long term in nature. The tax treatment of investment in and profit from forestry is derived from the unique features associated with the activity where significant levels of investment are generally required at an early stage with the returns on such investment not arising for some considerable time. These considerations do not apply to farming income derived from woody biomass crops. It would not, therefore, be appropriate to extend the same tax treatment to such income. There is already in place a generous package of reliefs that continue to be available exclusively to the farming sector. These include accelerated capital allowances for expenditure incurred on farm buildings, accelerated capital allowances in respect of expenditure incurred on certain pollution control measures, stock relief, and an exemption from income tax in respect of certain income from certain leased farmland. In addition, certain young trained farmers can also qualify for full relief from Stamp Duty on the transfer of land.

Michael Creed (Cork North West, Fine Gael)
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Question 99: To ask the Minister for Finance if he will introduce a 0% VAT rate on the supply of miscanthus and all energy crop seedstock; and if he will make a statement on the matter. [17412/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the VAT Directive Member States may retain the zero rates on goods and services, which have been in place since 1 January 1991, but cannot extend the zero rate to other goods and services. It is therefore not possible under EU law to apply a zero VAT rate to the supply of elephant grass rhizomes (miscanthus), seeds, bulbs, roots and similar supplies used for the agricultural production of bio-fuels. However, in Budget 2008 I took the opportunity available under the EU Directive to reduce the rate of VAT on energy crop seedstock. The VAT rate on the supply of elephant grass rhizomes, seeds, bulbs, roots and similar supplies or inputs used for the agricultural production of bio-fuels was reduced from 21% to 13.5% with effect from 1 March 2008. This measure was introduced to assist in the development of agricultural production of such fuels.

Michael Creed (Cork North West, Fine Gael)
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Question 100: To ask the Minister for Finance when a person (details supplied) in County Cork will be granted a refund of VAT in respect of farm buildings; and if he will make a statement on the matter. [17413/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the claim in question was received by them on 5 December 2007. The amount claimed was allowed in full and payment was processed on 13 December. However, the cheque which issued was not received by the claimant. The cheque has not been cashed and Revenue have now arranged with the bank to have it cancelled. A replacement cheque issued to the claimant in the last few days.

Michael Creed (Cork North West, Fine Gael)
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Question 101: To ask the Minister for Finance if community child care facilities which are operated on a not for profit basis can be exempted from commercial rates; and if he will make a statement on the matter. [17414/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Valuation Act 2001 maintains the long-standing position that commercial child care facilities — including all private child care facilities such as play schools, preschools, crèches and Montessori schools — are liable for rates. However, private child care facilities which operate on a community basis in a community hall, and which are not-for-profit, are not rateable because there is not exclusive occupation of the hall. In the circumstances, they would be part of the activities of a community hall and, therefore, exempt under Schedule 4, section 15 of the Valuation Act. Similarly, child care facilities which operate on a non-profit basis as a charitable organisation may be deemed to be exempt depending in each instance on the terms and conditions of the Memorandum and Articles of Association. The exemption in such an instance is provided for under Schedule 4, section 16 (a) of the Act.