Tánaiste and Minister for Finance Simon Harris has been criticised by Independent TD Carol Nolan for his comments on capital allowances for farm equipment.

The Offaly TD critiqued his “'state-aid says no’ principle”.  

Deputy Nolan had asked the minister to consider broadening the accelerated capital allowance scheme to include items such as calf feeders, milking parlours, and animal‑health monitoring systems.

Minister Harris replied: “It should be noted that where any tax measure is targeted at a specific industry, or sector including agriculture, state aid implications need to be considered.”

He also outlined the existing capital allowance provisions available to farmers, including accelerated allowances for farm‑safety equipment, adaptive equipment for farmers with disabilities, and energy‑efficient equipment listed on the SEAI Triple‑E Register.

Minister Harris added: “Finally, and as the deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances and the commitments set out in the Programme for Government.

“It is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters which might be the subject of Budget decisions.”

Supports

In a press release following the response by Minister Harris, Deputy Nolan noted that he had highlighted that state‑aid considerations may "restrict the ability to expand accelerated capital allowances".

“It is therefore essential that this issue is examined carefully so that farmers and stakeholders have clarity on what supports and what extensions to existing supports are possible within the current regulatory framework," Deputy Nolan said.

She added that farmers continue to invest in equipment that improves efficiency, animal welfare and overall farm management, and that proposals aimed at supporting such investment should be fully assessed within the budgetary process.

The Offaly TD also called for a more detailed rationale for excluding them beyond “a blanket application of the ‘state-aid says no’ principle”.