Farming reliefs 'a matter for budget'

THE MINISTER for Agriculture has refused to be drawn on farming taxation in next month’s budget.

Brendan Smith said he was in regular contact with Minister for Finance Brian Lenihan on a range of taxation matters of importance to farming, fisheries, forestry and the food industry.

“Taxation policy is a matter for the Minister for Finance and any decision on this, and all other tax issues, is a matter for the budget,” he said.

Fine Gael’s Andrew Doyle said the Food Harvest 2020 report envisaged a 50 per cent growth in dairying. If people expanded at that level and were not allowed to claim stock relief, they would end up with a paper profit that attracted a tax on money they had not made, he said.

Mr Smith said he was aware of the importance of stock relief.

“This relief has been extended several times in the past and it is a matter for the Minister for Finance and the discussions that are ongoing on the budget,” he said. He had met the IFA and other farm organisations and each organisation had also met Mr Lenihan.

Labour’s Seán Sherlock said there must be a major restructuring in the use of land and stock, adding that reliefs should be continued and extended.