No VAT concessions for crafts The March/April issue of the Newsletter carried a leading article on V A T and crafts. In particular, it commented on the effect of the increase from 20 per cent to 25 per cent of the V A T on crafts in the last budget. In the article it was mentioned that the Crafts Council was making representations and suggestions to the appropriate Minister of State to use his good offices in making the case to his colleague, the Minister for Finance, for either no increase or even a reduction.
that "under a general sales tax such as V A T , it would not be equitable or operationally possible to grant relief to particular goods by reference to the circumstances of particular producers or to their particular methods of production, and any such relief would have to apply to imports as well as domestic products; tax relief on the basis of product-type could undermine the base of the standard V A T rate with inherent serious budgetary implications.'
The Minister, after the fullest con足 sideration, has not been able to agree to concessions which would reduce or remove V A T on handcraft products.
To enable a clearcut distinction to be made to the advantage of hand craft足 workers, it was suggested that the Council would maintain a register of bona fide hand craftsmen, but it was considered that " i t would not be practicable to introduce a registration threshold for handcraft products which would represent an exception to the general V A T registration provisions."
The reasons given reflect the approaches the Council suggested and, as can be seen, the making of exceptions for the hand足 craft sector is not seen as possible. There are obvious administrative difficulties vis-a-vis similar manufactured products, but the main stumbling block seems to be the Sixth Directive of the EEC, relating to V A T , under which no new zero ratings can be introduced. This Directive "precludes the introduction of new V A T zero ratings and does not provide for the use of the V A T system to discriminate in favour of handcraft products as against goods of the same type produced by other means."
The more obvious means of reducing the effect of V A T in the Craft Sector have thus been found in conflict with the principle of equity. This does not, however, preclude the Council from pursuing other proposals which might help to alleviate the burden which the 25 per cent V A T places on their products.
The Northern Ireland Arts Council has awarded a Research Fellowship to Miss Anne Montgomery to examine provision for crafts in Northern Ireland. She will examine, in the six month period of the Fellowship, the need for a comprehensive index of craftsmen in Northern Ireland, as well as preparing a report on the basis of her interviews /vith craftsmen and officials of organisations related to or dealing with crafts. The report will examine also such matters as the use of facilities available elsewhere by Northern Ireland craftsmen. Miss Montgomery is a graduate of Belfast College of Art & Design and of the University of Manchester. She has lectured in textiles at the Art & Design Centre in Belfast since 1977 and also .vorks as a freelance artist/craftsman.
A special award of 贈200 was made by the IDA to Kevin O'Callaghan of Glanmire, Co Cork, earlier this month, as the student who has shown the most promise in the first year of a violinmaking course introduced, last year, at the Cork School of Music. The craftsman conducting the course is William I Patterson who, it will be remembered, was a winner of the Crafts Council of Ireland's Silver Medal at the RDS National Crafts Competition in 1977. The course assessor, Mr Peter Sermon of the Royal Philharmonic Orchestra, supported the view that the course will have the effect of establishing this particular craft as an addition to the other musical instruments being made here at present. Mr John Toher, Assistant Regional Manager of the IDA, made the presentation and the Lord Mayor of Cork was present, as was Miss Brigid Doolin, Director of the Cove School of Music whose brainchild the course was.
Northern Ireland Crafts The 1980 edition of the booklet on craft and craftsmen in Northern Ireland produced by the Local Enterprise Development Unit lists 160 craftsmen and women.
It had been hoped that relief could be given on the basis of handcraft versus manufacture but on this the decision was
N.I.Craft Research
Violin Making Award
New Bord Failte Visitor Purchases Showroom Craftsmen who have used the valuable retail contact facilities offered by Bord Failte, through Miss Blanaid Reddin's department, will be glad to know that new premises have been acquired to accommodate the office and showroom. The new office is at 12 Herbert Street which is between Baggot Street and Lower Mount Street and it is clearly a sign of the importance which Bord Faiite attaches to the service. To craftsmen, it is of considerable value to have their samples available on show throughout the year in one place where retail and, indeed, overseas buyers can see a wide selection of potential stock.
A wide range of crafts, both traditional and contemporary, and of craftsmen as individuals or small companies, are featured in a well designed and informative publication, with names, addresses, photographs and descriptive copy as well as a useful index. Copies can be obtained f r o m : L E D U , Lamont House, Rudy's Lane, Newtownbreda, Belfast, Northern Ireland.