Éamon Ó Cuív (Galway West, Fianna Fail)
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408. To ask the Minister for Agriculture, Food and the Marine the discussions he has had with the European Commission regarding long-term land lease and the timeframe for its introduction; and if he will make a statement on the matter. [29115/15]

Simon Coveney (Cork South Central, Fine Gael)
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The relief of stamp duty on long-term leases was included in the Finance Act 2014, subject to a commencement order. It was one of a number of recommendations in the Agri-taxation Review designed to increase the mobility and the productive use of land. The relief is not currently in force as it cannot be introduced until it is granted State Aid approval by the European Commission.

The Department held initial discussions with the Commission in this regard but they indicated that the measure, as presented, was not State Aid compatible. The Department is currently engaged with the Commission with a view to determining whether there is a basis for its introduction under State Aid rules.

It should be noted that the 2014 Finance Act also introduced a comprehensive package of measures to encourage more widespread uptake of the long-term leasing income tax measure which were:

- A 50% increase on the thresholds for relief from leasing income

- A fourth threshold for lease periods of 15 or more years

- Removal of the lower age threshold of 40 years of age for eligibility

- Non-connected limited companies allowed as an eligible lessee.