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Minister Donohoe to introduce Finance Bill Report Stage Amendment on accelerated capital allowances for farm safety equipment

Minister Donohoe to introduce Finance Bill Report Stage Amendment on accelerated capital allowances for farm safety equipment

 

Need to proritise amendment due to fact that half of all fatal workplace incidents occur in the agriculture, fishing and forestry sector

 

The Minister for Finance, Paschal Donohoe TD, has today (Friday) confirmed that he is to bring a Report Stage Amendment to Finance Bill 2020 in order to introduce accelerated capital allowances for farm safety equipment, with a particular emphasis on supporting those who have suffered life-changing injuries as a result of incidents on farms.

 

A large proportion of all fatal workplace incidents (50%) occur in the agriculture, fishing and forestry sector. Between 2010 and 2019 there were 214 fatal incidents on farms. Of these, 65 involved a farm vehicle, 39 involved machinery and 39 involved livestock. These three areas accounted for 67% of all fatal incidents on farms.  In an effort to tackle this, Minister Donohoe is bringing forward a change to the capital allowance treatment of certain farm safety equipment, and adaptive equipment for farmers with disabilities.

 

Currently, capital allowances are available at 12.5% p.a. over eight years for agricultural equipment generally. The proposed new scheme will allow for accelerated capital allowances of 50% p.a. over two years for certain eligible equipment. This eligible equipment includes, for example, chemical storage cabinets and anti-backing gates, as well as adaptive equipment to assist farmers with disabilities.

 

The scheme will be administered by the Department of Agriculture, Food and the Marine and Revenue. 

 

An annual total equipment cost of €5 million p.a., excluding VAT, for the measure will apply.

 

Speaking today, Minister Donohoe said,This proposal underlines the priority afforded to the issue of farm safety in the Government Programme and reflects a commitment to make further progress early on in the Government’s term of office. The aim this year is to get a scheme in place and the measure will be kept under review during 2021 and beyond’.

 

The Minister for Agriculture, Food and the Marine, Charlie McConalogue, said: “This proposal reflects how the Department of Agriculture is working with all arms of the government to drive change in relation to safety behaviour, while supporting those farmers who have suffered serious injury. My colleague in the Department Minister Martin Heydon has a specific Farm Safety element to his portfolio and is already doing strong work in the area and will continue to do so as a priority.”

 

The Minister of State with responsibility for Research and Development, Farm Safety, and New Market Development, Martin Heydon TD, added: “Having listened to those survivors and families impacted by farm accidents, I am absolutely determined that farmers who have suffered a life-changing injury are not left behind.  With this proposal I want to support these farmers and help them get back to work.  This is more than just about enabling people to getting back to farming, but also about improving their physical and mental wellbeing.”

 

The scheme will be administered by the Department of Agriculture, Food and the Marine and be subject to a scheme total equipment cost of €5 million p.a. ex VAT.