Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 287: To ask the Minister for Finance if he will review the possibility of tax exemption for the food park at Lough Egish, Castleblayney, County Monaghan (details supplied); his views on whether a border region such as Monaghan is as much entitled to such benefits as the tax free status such as Shannon Airport, industries in Cork or the financial services in Dublin; and if he will make a statement on the matter. [22677/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Government's taxation policy is designed at maximising the employment and economic benefits of industrial development by creating an attractive climate for investment throughout Ireland. In this respect Ireland offers one of the most beneficial corporate tax environments in the EU with a corporation tax rate of 12.5% applying since 1 January 2003.

This is a general measure which applies across the board to companies located in all areas and regions in the State. As such, it does not conflict with EU state aid rules. A proposal to offer tax incentives to companies in a specific region or specific towns would constitute state aid and would have to be examined and approved by the EU Commission. Recent experience of a much more rigorous examination of fiscal state aids by the Commission indicates that approval for any such scheme could not be guaranteed given in particular that the current regional aid map for Ireland expires at end of 2006.

There is no tax free status available to firms in Shannon, Cork or Dublin. However, an effective corporation tax rate of 10% does apply to certain companies in the Shannon Airport zone and the IFSC and manufacturing companies generally. State aid rules require this rate to be phased out and not re-introduced. Specific incentives as provided for in Finance Act 1997 concerning Cork Airport business park, were approved by the European Commission under state aid rules and applied to buildings where expenditure was incurred before end-December 2000.

Bernard Durkan (Kildare North, Fine Gael)
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Question 288: To ask the Minister for Finance the action he proposes to take to address the ever increasing burden of taxation on first time buyers who are being penalised as never before; and if he will make a statement on the matter. [22781/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 289: To ask the Minister for Finance if his attention has been drawn to the fact that first time buyers have been ripped off by increased taxation; and if he will make a statement on the matter. [22782/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 288 and 289 together.

I do not accept the Deputy's views that first-time buyers are being penalised by an ever increasing burden of taxation nor are they been ripped off by increased taxation. The policies pursued by this Government have ensured that the income tax burden has fallen for all categories of income earner since 1997. In 1997 the entry point to taxation for a single PAYE person was under €98 per week. Today it is €274 per week — an increase of almost 180%. In 2005, a person on the average industrial wage will have seen their pay rise by over €11,000 since 1997, but their tax bill cut by over €200 per annum as compared to then. This reduction in personal taxation means that individuals retain more of what they earn to spend as they see fit.

With regard to specific tax measures in the housing area it should be borne in mind that the housing market is a complex and dynamic one and demands continuous monitoring and adjustment to address changing circumstances. To this end, a number of measures that have improved the position of first time buyers in the housing market have been introduced over the years. In budget 2003 the higher ceilings for first-time buyers on allowable interest for mortgage interest relief were increased from €3,175 to €4,000 per annum for a single person and from €6,350 to €8,000 for a married couple and the period for which these increased ceilings apply was extended from five to seven years. Most recently, in budget 2005, I introduced a stamp duty relieving measure for first-time house purchasers who are owner-occupiers of second-hand houses by increasing the stamp duty exemption threshold for such purchasers from €190,500 to €317,500 and by reducing rates for house values up to €635,000.

Government policy in the housing market has focused, among other things, on improving supply, assisting home ownership particularly for first-time buyers, facilitating the expansion of the private rented sector and promoting the regeneration of certain areas. In this context, a range of tax incentives exist in relation to the housing market in the case of first-time buyers and other owner-occupiers, for tenants and investors. The years 2003 and 2004 were the ninth and tenth successive years of record housing output with 68,819 and 76,954 completions respectively. The rate of house building is now more than double that in 1996. Our tax policy has had some success but we don't claim all the credit.

Like all other goods and services, the State finds it necessary to raise taxes from this area. However, there has been some badly informed commentary recently in relation to the tax take from new homes. Figures in excess of 40% have been attributed to the amount that the Government raises in tax from each new home. However, this figure is wrong. In fact, the cost of a new home that accrues directly to the Exchequer through taxation is more like 28%, based on both Dublin and national prices. This is broadly in line with the tax take on the overall economy.

As the Deputy will be aware, the Government has decided to establish, a new agency — the Affordable Homes Partnership — to drive and co-ordinate the delivery of affordable housing in the greater Dublin area. The agency will be focused on early improvements in the delivery of affordable housing. The agency's first tasks will include helping to accelerate the Sustaining Progress affordable housing initiative on State lands. The agency will also issue a call for proposals from third parties in order to identify further appropriate sites for affordable housing. Furthermore, the agency will provide a co-ordinated public information service on the various aspects of affordable housing, thus making it easier for people to find out what is on offer and how to avail of it.