Alex White (Dublin South, Labour) | Oireachtas source

Deputy Timmins raised the issue of funding for companies in areas that are considered to be non-assisted for the purposes of the employment and investment incentive. The guidelines governing this scheme state that aid is restricted to providing financing up to the start-up stage for medium-sized enterprises located in non-assisted areas.

Deputies Michael McGrath, Doherty, Mattie McGrath and Lawlor commented on vehicle registration tax, VRT, and road tax. The revised VRT rates and structure were agreed following consultation. Given that the industry has been calling for a second registration period, it is prudent to monitor the impact of these changes. While the increase in motor tax rates is a matter for the Minister for the Environment, Community and Local Government, it is important to note that the CO2 based system introduced in 2008 has worked well. The re-registration of vehicles, an issue raised by Deputy O'Donovan, has been proposed previously. The various stakeholder agencies involved were consulted and are not in favour of such a measure.

Deputies Doherty, Boyd Barrett and Stanley raised concerns about the living city initiative. The objectives of this modest pilot initiative are to encourage people back to the centre of cities to live in historic buildings and encourage the regeneration of the retail heartland of central business districts. I find it difficult to understand how any serious objection could be made to such a scheme. I do not know if the Deputies' concerns are born of any particular objection to assistance being given or allocated towards our Georgian heritage. I cannot speculate as to whether this is the motivation for the concerns expressed by certain Deputies but the idea that we should not take such a progressive step to protect the fabric of the architectural heritage of our cities is strange.

Deputy Timmins asked about the reduction in the level of tax relief provided for donations of heritage property to the State from 80% of the market value to 50%. This measure is in recognition of an extension of scope of the scheme and to provide better value for money for the State in respect of donations of property.

Deputies Michael McGrath and Mattie McGrath suggested tax relief for home improvements. Tax relief available on interest paid on loans for home improvements until this year was not effective in stimulating such activity.

Deputy Michael McGrath raised queries about the arrangements to give effect to the commitment in the programme for Government to cap taxpayers' subsidies for pension schemes that deliver income of more than €60,000 per annum. The Minister indicated that these changes would be put in place next year. The Deputy also referred to the pension fund levy and expressed doubts about its cessation. The legislation is clear on this point and the Minister made a specific commitment in his budget 2013 speech that the levy would not be renewed after 2014.

Deputy Michael McGrath stated he would press for an extension of the pre-retirement access to additional voluntary contribution provisions and Deputy Kyne also raised issues in this regard. Deputy McGrath also expressed doubts about the tax yield. We have to be cautious in this area. The Minister has deliberately restricted this measure to a proportion of contributions made by pension scheme members above their regular or compulsory contributions. The estimates included in the budget arithmetic are based on pension sector figures of the value of additional voluntary contributions and on the assumption that 10% of these contributions would be encashed over the three year period of the access option.

Deputy Pringle suggested the sale of alcohol in off-licences be examined, while Deputies Michael McGrath and Mattie McGrath drew attention to a proposal to apply a levy to such sales. Legal advice received from the Office of the Attorney General suggested this could not be introduced without breaking European Union rules. Further examination of this issue is continuing. I have a particular interest in this area. As I indicated previously, I intend to introduce measures on alcohol, alcohol policy and legislation to deal with these issues, including alcohol pricing. My proposals will be brought to Government in the near future.

Deputy Michael McGrath referred to the stamp duty levy on health insurance contracts. This provision is only one element of the permanent risk equalisation scheme provided for in the Health Insurance (Amendment) Act 2012. The scheme is linked to the principle of community rating, which needs to be supported by a scheme that subsidises the cost of health care for older and sicker people across the market of health insurers where one or more companies have a greater share of such customers. The support system currently in place, known as risk equalisation, is a vital element of Government policy on the health insurance system.

I note that time does not permit me to address all the issues raised in the past couple of days. A small number of matters remain under consideration for inclusion on Committee Stage and the Minister for Finance looks forward to another informed discussion at that stage. Consideration will also be given to any constructive suggestions put forward during this debate.

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