Pat Rabbitte (Dublin South West, Labour)

The Minister stated, in introducing the measures on property-related legacy issues, that the cost was €400 million. Is the yield of €100 million a quarter of this? Does it mean the changes being made to the schemes will result in a yield that is 25% of the yield that might accrue if the pruning were more severe? What are the considerations in trying to make the restrictions more severe? Are there contractual issues or others that constrain one? Reliefs in this area fuelled the system that resulted in much of the overhang of housing and apartments. The section 23 relief, which is probably the best known, will be restricted in application to income from section 23 property as distinct from rental income.

The wish is to try to have some kind of market operating again in terms of disposing of the overhang in urban areas, where there is undoubtedly pent-up demand. However, young people and first-time buyers do not want to move if they believe that, in six months, values will have fallen by another 7%. It is very difficult to know the floor in circumstances such as these. It is important that some kind of market be regenerated where there is a population and demand, for all the obvious reasons, but some of what are referred to as legacy relief schemes have outserved their usefulness and ought to have been brought to an end or pared back long before now. Why is €100 million the figure determined for a full year? Why not €200 million in a full year? What difference would the latter figure make? Are there contractual or constitutional impediments in the way of pruning more severely?

What judgment was brought to bear on the capping of the earnings threshold for artists? As with many exemptions that served a very useful role at one stage, the artists' exemption came to be abused. I do not know the result of the cost benefit analysis. If one makes the threshold relatively harmless, is the exemption of any value in attracting artists to live here who might not otherwise consider doing so? Does the Minister believe the threshold of €40,000 is well judged?

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