Jackie Cahill (Tipperary, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

52. To ask the Minister for Finance to bring forward proposals to extend the exemption on capital gains tax that currently operates for farmers who consolidate their family farm holdings to farmers who, due to the economic circumstances in the industry at this time, need to sell parcels of land to consolidate their bank loans and secure their family farms into the future; and if he will make a statement on the matter. [17493/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In Budget and Finance Act 2013, I introduced a capital gains tax (CGT) relief to cover situations where the proceeds from the sale of agricultural land by farmers are used to reinvest in other farmland for farm restructuring purposes. The rationale behind the relief is to enable farmers to consolidate disparate holdings of farmland in order to make their farming business more productive and efficient. To amend the relief, as proposed in the question, to cover discrete sales of parcels of land unconnected to farm consolidation would run completely counter to the reasons behind the introduction of the restructuring relief.

While I appreciate the concerns behind the Deputy's proposal, I do not intend, for the reasons outlined, to extend the relief in the manner proposed. It would also be invidious to introduce a new CGT relief in respect of asset disposals by farmers which did not apply to other taxpayers in similar situations. Aside from any other considerations, current resources would not allow for such a broad-based tax concession.

The Government is fully aware of the pressures on farmers right now and my colleague the Minister for Agriculture, Food and the Marine, Mr Michael Creed TD, has committed to working with all players in the sector, both at national and EU level, to address these issues and ensure that we continue to have a sustainable and resilient sector. I understand that Minister Creed recently met with the CEOs of the main banks and stressed the need for them to be flexible in the context of increased income volatility. The banks told the Minister that they recognise and are responding to the challenges facing farmers in this regard.

Finally, I also believe that, in response to the current market difficulties, the Minister for Agriculture, Food and the Marine has this week launched the 'Financial Management Initiative', as recently agreed by the Dairy Forum (comprising farm organisations, co-ops and processors, the Department and its agencies, as well as the banking sector). It is a programme of cash flow and financial management training and advice for dairy farmers.