State to refund Live Aid VAT

The Government will refund the VAT on DVD and CD sales of the 1985 Live Aid concert, the Taoiseach told the Dáil.

Mr Ahern said that the Minister for Foreign Affairs "has agreed to make a special contribution equal to the value of the VAT paid on special purchases of the CD and DVD to the Band Aid Trust".

At a press conference on Monday to launch the 10-hour DVD of the concert, organiser Bob Geldof called on governments of the world to forgo the VAT on sales, and to make that money available to help those in dire need in Africa.

The same day, Britain's Chancellor of the Exchequer, Mr Gordon Brown, promised to repay the VAT take on the DVDs and CDs.

In the Dáil on Tuesday, Labour's finance spokeswoman, Ms Joan Burton, had asked if legislation would be necessary to allow for a refund if the Government decided to do that. Mr Ahern said that there were no plans for such legislation.

However, the Cabinet discussed the issue, and Mr Ahern said yesterday that the Minister for Foreign Affairs, Mr Dermot Ahern, had agreed to the refund.

He explained that "the system is best done by paying the similar amount rather than just not charging the VAT. So what will happen is the contribution will be paid equal to the amount of the VAT."

He said the trust would give the sales figures.

Mr Ahern also expressed his "admiration for the work and contribution of Bob Geldof to the Third World".

"He has moved beyond words with colleagues in the music world, and has made an important and valuable contribution.

"Most importantly, he has inspired many young people to think deeply, and to give generously to the Third World."

Later, in a statement, Mr Barry Andrews (FF, Dún Laoghaire), who had also called on the Government to refund the VAT, said that it would increase Ireland's contribution to the fund by 20 per cent.

He said that Bob Geldof had grown up in his constituency, and he was "confident that Dubliners and people throughout Ireland will once again rally to the cause and ensure the single is once again our Christmas Number 1", after its original success 20 years ago.