House adjourns early without a vote

DebateIn an unprecedented move the Dáil adjourned early last night because there were no increases in excise duty on alcohol, fuel or tobacco products to be debated and voted on.

Just one financial resolution was passed by the House when all parties accepted without a vote an increase in the farmers' flat rate VAT fee from 4.4 per cent to 4.8 per cent.

It is a VAT relief measure for unregistered farmers, and will cost the Exchequer €16 million in a full year.

On Budget night the Dáil often sits until midnight to debate and vote on increases on products such as petrol, diesel and cigarettes which would come into effect that night.

This year, however, there were no such excise increases, so the only debate was on the farmers' VAT relief. The House adjourned four hours earlier than scheduled.

The resolution agreed compensates unregistered farmers for the VAT they pay on business inputs in the supply of agricultural services and produce.

The measure also allowed for the VAT rate on the supply of livestock and greyhounds and the hire of horses to increase by a similar percentage.

The measure was introduced by the Taoiseach, Mr Ahern, who said it it was an annual issue in the Budget.

Mr Ahern told the Dáil that it was the biggest VAT relief increase for "an awful long time".

Mr Denis Naughten, Fine Gael's agriculture spokesman, expressed his disappointment with the Budget for farming, and said that farming inflation was running at 6 per cent, twice the average inflation, so farmers were losing €6 in every €100 on rebates.

The Taoiseach said, however, that farmers could register for VAT if they felt they were being short-changed by the scheme. "It's not compulsory that they use this. If they want to operate the system, they can, but this is a very effective system, and there are an awful lot of advantages."

Labour TD for Westmeath Mr Willie Penrose described the measure as "customer friendly". He acknowledged it was a bigger increase than in previous years, but the value of the increase would not be reflected by the rate.

The Green Party leader, Mr Trevor Sargent, welcomed the increased VAT relief as a "narrowly-focused" measure, but said it did not reflect the wider agriculture industry situation. He also expressed his concern about farming-pollution control, and the efforts made to deal with it.

However, Mr Ahern said €38.1 million had already been provided for farm-pollution control measures.