Jerry Cowley (Mayo, Independent)
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Question 88: To ask the Minister for Finance if he will introduce a special tax incentive scheme due to the loss of approximately 1,000 jobs in north Mayo in the past five years and the lack of economic development in the area, particularly in view of the closure of the Bellacorrick power station in north Mayo; and if he will make a statement on the matter. [9787/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I announced in the budget that my Department and the Revenue Commissioners will undertake a thorough evaluation of the effect of all relevant tax incentives, including certain area-based schemes such as the urban, rural and town renewal schemes. These are scheduled to terminate on 31 July 2006. I confirmed to the House that the termination dates laid down in the Finance Act 2004 remain unchanged. In view of this work, it would be inconsistent to consider any proposal for a new area-based tax incentive scheme.

Initiatives aimed at employment generation fall within the remit of the Minister for Enterprise, Trade and Employment and are a matter for that Minister in the first instance.

Willie Penrose (Westmeath, Labour)
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Question 89: To ask the Minister for Finance if, in a situation where a person who has a family member with special needs must move house and purchase a second-hand house, the stamp duty payable in respect of the purchase of a second-hand house can be waived; and if he will make a statement on the matter. [9788/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The stamp duty code does not provide exemptions based on an individual's particular circumstances and introducing such a provision would represent a significant departure from normal stamp duty rules. If such an exemption were introduced, other special cases would demand similar treatment, which would lead to a narrowing of the stamp duty base. This would run counter to the Government's taxation policy of having a wide tax base in order to keep direct tax rates low.

Stamp duty is a significant contributor to the Exchequer and stamp duty receipts allow for a broader tax base than would otherwise be possible. These receipts form an important element of State revenues, which permit Government spending on services such as health and education.

The Department of the Environment, Heritage and Local Government advises that a scheme of disabled person's grants is operated by local authorities, with capital provision from that Department. These grants are designed to meet the needs of persons who are either physically handicapped or are suffering from severe mental handicap or mental illness. Where a new dwelling is bought or built, a maximum grant of €12,700 is payable. In the case of adaptation of an existing dwelling, 90% of the approved cost of the work is available, up to an effective maximum grant of €20,320. Full details of the scheme and the conditions applicable are available from the local authority in the area where the dwelling is situated.

There is no legislative provision to waiver stamp duty on grounds outlined by the Deputy and there are no plans to introduce such exemptions to the stamp duty code.

Séamus Kirk (Louth, Fianna Fail)
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Question 90: To ask the Minister for Finance if, in view of the very serious economic position of dairy farmers, he will consider the possibility of allowing farmers offset losses in 2005 against profits for any relevant year, or years, within the past 12 years; and if he will make a statement on the matter. [9804/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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There are a number of provisions in the tax code to deal with offsetting losses incurred by farmers in a tax year.

Section 381 of the Taxes Consolidation Act 1997 permits a person chargeable to income tax who suffers a loss in a trade or profession, including farming, to set off the amount of the loss against income from all sources for the relevant tax year. Relief may only be claimed under this section in respect of a tax loss sustained in the tax year for which the claim is made. This set off against income from all sources has the effect of reducing the taxpayer's total taxable income for the year a claim for relief is made under this section. To the extent that the recalculation shows an over payment of tax, the taxpayer is entitled to a repayment. A claim to loss relief under this provision may be either created or augmented by claiming capital allowances to increase the quantum of the loss. Loss relief under this section can be claimed not only against the income of the lossmaker, but also against the income of that person's spouse, in the year of loss, provided the couple is not treated separately for tax purposes.

Notwithstanding the option of setting losses against other income in the year in which a loss is incurred, a taxpayer, including a farmer, may decide instead to carry losses forward, under section 382 of the Taxes Consolidation Act 1997, for relief in a later tax year. In that event, the loss may only be set against subsequent taxable profits from the same trade or profession. There is no time limit on how far forward losses can be brought, provided the same trade continues in existence. Relief under section 382 is only available to the extent that the loss has not been offset against other income under section 381. The relief is given from the profits of the first subsequent year of assessment, with any balance being carried forward and set against the profits of the next subsequent year of assessment and so on.

Section 385 of the Taxes Consolidation Act 1997 provides that where a trade or profession, including farming, is permanently discontinued and a loss is suffered immediately before the time of the discontinuance, then the amount of that loss may be set against other income from that same trade or profession for the three years prior to the year of cessation, with later years being relieved before earlier years.

The general rules outlined above apply equally to farming, subject to certain restrictions for persons not farming on a commercial basis.

There are no proposals to amend the current tax treatment of losses arising from farming as the legislation covering such treatment of losses makes adequate provision for farmers. In addition, there is a generous package of reliefs and specific arrangements that continue to be available exclusively to the farming sector. These include income averaging; stock relief; accelerated capital allowances for expenditure incurred on farm buildings; accelerated capital allowances for expenditure incurred on certain pollution control measures; capital allowances for expenditure incurred on the purchase of milk quota; an exemption from income tax for certain income from certain leased farmland; and special tax treatment in respect of profits accruing as a result of the disposal of stock under statutory disease eradication measures. Furthermore, certain young trained farmers can also qualify for full relief from stamp duty on the transfer of land and can also avail of enhanced stock relief of 100%.