Tommy Broughan (Dublin North East, Labour)
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Question 81: To ask the Minister for Finance his proposals for the review of tax reliefs and exemptions for high earners; if consultants have been appointed to assist in this process; the role he envisages for the Joint Committee on Finance and the Public Service; when the process will be completed; and if he will make a statement on the matter. [2465/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I announced in my Budget Statement that my Department and the Office of the Revenue Commissioners will undertake a detailed review of certain tax incentive schemes and tax exemptions in 2005. This review will evaluate their impact and operation, including their economic and social benefits for the different locations and sectors involved and to the wider community. In addition, the review will examine the degree to which these schemes allow high income individuals to reduce their tax liabilities.

I subsequently announced in a press release on 6 January 2005 that my Department has advertised for external consultants to review certain tax incentive schemes. The consultants will evaluate the following incentive schemes: urban renewal; rural renewal; town renewal; living over the shop; multi-storey carparks; park and ride; student accommodation; third level buildings; hotels and holiday cottages; nursing homes; private hospitals; sports injuries clinics; child care facilities; and countrywide refurbishment scheme.

Tenders have been invited from suitably qualified consultants to undertake two separate studies in economic, fiscal and social terms, as necessary, of the impact, operation, effectiveness and cost of all the above tax incentive schemes. The request for tenders was placed in the Official Journal of the European Union on 24 December 2004. Decisions on the award of the contracts are scheduled for end March-early April 2005. It is envisaged that the consultancy review of these various reliefs will be completed by mid summer.

The review of tax reliefs includes a special public consultation process seeking submissions on measures that could be introduced that balance the benefit of such reliefs with the extent to which these are used by high earners to reduce their tax bill. The public consultation process was advertised on 8 January 2005 and submissions should be made before 31 March 2005.

The review will also involve the examination by my Department and the Revenue Commissioners of certain other tax exemptions, for example, for stallions, woodlands, artists and patent income. I would welcome the views of public representatives, either individually or via the forum of the relevant Oireachtas committees, and of the social partners in due course in relation to all these matters. The aim is to have all these examinations completed by the autumn so that the various issues can be examined in the context of the 2006 budget next December.