Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

To respond to the issue raised by Senator Aideen Hayden, we are all aware that there is some inferior rental accommodation which we would like to be upgraded. This provision is not geared to that objective but helping people who are unemployed and possess building skills to return to work. The second target of the measure is to improve homeowners' living accommodation by doing whatever work they believe is necessary. A tax relief is available for works carried out by landlords. If a schoolteacher, garda, nurse or factory worker has windows fitted in a second property that is rented, he or she can claim the cost against the income derived from the rental property. There is a business expense which is applicable to those whose tax is primarily paid under the PAYE system. If they fit windows in their home, however, they will not receive a tax break because they will be acting as a private citizen with his or her own accommodation.

On the issue of grants which was raised by Senator Darragh O'Brien, I propose to read the note provided on the matter. Any grant, compensation or insurance settlement will not affect eligibility for the scheme. If a claimant has received or will receive any grant, compensation or insurance settlement, the amount of any payment or payments which are taken into account for the purposes of calculating the relief shall be reduced. Depending on the nature of the receipt, the following reductions apply. In the case of amounts received from the State or any public body or local authority, the reduction will be three times the amount received or receivable. In the case of payments received under any contract of insurance or by way of compensation or otherwise, the reduction shall be the amount received or receivable. The point in principle is that if a person receives a grant from a State agency or local authority such as those to which the Senator referred to improve accommodation for the elderly, he or she will not be disqualified from benefiting from the scheme. However, a mathematical calculation will be made to ensure the person is not paid twice for the same work and does not receive a tax break on the grant element or a multiple thereof. That is a satisfactory position.

The previous question was on the effect on the retail sector. Since this measure was announced, it has been broadly welcomed by the construction sector and homeowners. If the inquiries the Department of Finance and the Revenue Commissioners have received are indicative of the position, we expect a significant take-up of the scheme which should provide a welcome boost for the construction sector. This additional activity will undoubtedly contribute positively to the broader economy, not least retailers and suppliers to the construction industry.

On the issue of communicating the scheme to homeowners, I am keeping the scheme as simple as possible. When all Stages pass the Seanad and the President signs the Finance Bill into law, Revenue and the Department of Finance will publish guidelines on the scheme which will be posted on their websites in the normal manner.

I have addressed all queries thus far. I again thank Senators for their strong support for the scheme.