Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 324: To ask the Minister for Finance the value to taxpayers in 2005 of the tax cuts introduced in the budgets of 1998, 1999 and 2000; and if he will make a statement on the matter. [22840/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I presume that the tax cuts to which the Deputy refers are those resulting from the personal tax packages introduced in the budgets for each of the years 1998 to 2000. It is very difficult to isolate the current value to taxpayers of those reliefs from the totality of very generous personal tax packages introduced in successive budgets in the period since 1998. Over that period, various measures impacting on personal taxation, including PRSI and levy changes, at a cost of €6.3 billion on a full-year basis have been implemented. Of the total cost of €6.3 billion, close to €2.9 billion relates to the budget and post-budget measures introduced in 1998, 1999 and 2000. These amounts are in then money values. If these were shown in 2005 prices, their value would of course be greater.

However, by way of illustration, since 1997 a person on the average industrial wage will have seen their annual pay rise by more than €11,000 while paying more than €200 per annum less in tax compared to 1997.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 325: To ask the Minister for Finance the amount by which the economy grew in 2003 and 2004; the increase in taxation receipts resulting from such growth; and the likely impact on tax receipts had the economy grown at half the rate achieved in those years; and if he will make a statement on the matter. [22841/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Irish economy is estimated to have grown by 3.7% in real terms in 2003, as measured by GDP and by 4.9% in 2004. In nominal terms, including the effects of price increases, GDP growth in 2003 is estimated at 5.3% and at 8.5 % in 2004. Finalised data for 2004 will not be available until sometime next month when the CSO release its 2004 national income and expenditure figures. It is not unusual, however, for estimates of economic growth for previous years to be revised, as economic data for those years is refined.

Tax revenues in 2003 increased by 7.6% over 2002 on an underlying basis, excluding the impact of tax receipts of a "once-off" nature. The underlying increase in 2004 was 11.1%.

As regards the hypothetical scenario of lower economic growth in 2003 and 2004, I would point out to the Deputy that tax revenue is dependent not only on the rate of economic growth but on the composition of that growth. In the hypothetical situation put forward by the Deputy, tax revenue growth would most certainly be lower but how much lower would depend on the causes of the lower economic growth envisaged in the question.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 326: To ask the Minister for Finance the amount by which the economy is anticipated to grow in 2005; the increase in taxation receipts he expects from such growth; the likely impact on tax receipts should the economy grow at half the rate anticipated in 2005; and if he will make a statement on the matter. [22842/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In my December budget my Department forecast that the Irish economy would grow by 5.1% in real terms in 2005, as measured by GDP. In nominal terms, including the effects of price increases, GDP is forecast to grow at 8.5%. An updated forecast of economic growth for 2005 will be included in the annual economic review and outlook, which will be published by my Department in August. On an underlying basis, that is excluding the impact of tax receipts of a once-off nature, tax revenues in 2005 were forecast in the budget to increase by 7.4% over 2004.

Tax revenue is dependent not only on the rate of economic growth but also on the composition of that growth. In the hypothetical situation put forward by the Deputy, tax revenue growth would most certainly be lower but how much lower would depend on the causes of the lower economic growth envisaged in the question.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 327: To ask the Minister for Finance the estimated impact on the rates and expenditure, according to the income distribution models available in his Department, of halving relative income poverty rates; and if he will make a statement on the matter. [22843/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The ESRI SWITCH model was utilised by my Department to analyse the impact of the combined effect of the social welfare and tax changes contained in the budget for 2005 on the distribution of income. As set out in the budget documentation, the model indicated that the most significant net income gains from budget 2005 accrued to those in the lowest income deciles.

As Minister for Finance, my primary input in the area of income distribution arises from my responsibility for taxation policy. In that regard, the current established approach to taxation in Ireland, and in other OECD countries, is that while the tax system may have a role to play in the broader issue of income distribution and poverty reduction, taxation policy is not the main instrument for achieving objectives in this area. Instead, the social welfare system has the primary role in alleviating poverty and overall policy on social welfare and poverty alleviation, including the appropriate rates and consequent costs of social welfare payments, is, in the first instance, a matter for my colleague, the Minister for Social and Family Affairs.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 328: To ask the Minister for Finance his views on introducing a State sponsored scheme for deposits in house purchases by first-time buyers along the lines of Government underwritten equity sharing transaction as suggested by the NESC in its recent report on housing; the likely cost of such a scheme if it were capped at 10% of the purchase price of a residential unit; and if he will make a statement on the matter. [22844/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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This is a matter for my colleague, the Minister for the Environment, Heritage and Local Government, who will respond directly to the Deputy on the issue.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 329: To ask the Minister for Finance the value of the increases in charges and appropriations in aid in the financial years 1995/1996 and 1997/1998. [22845/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I take it that the Deputy is referring to appropriations-in-aid, and charges for services, received into my Department's Vote in each of the calendar years 1995-1998. The financial year for Government Offices and Departments is the calendar year. As charges for services are taken in as appropriations-in-aid, the appropriations-in-aid figures include the charges for services figures shown. The table below shows the figures for each year and the variations compared with the previous year.

It should be noted that charges for services figures shown are only for items that are readily identifiable as such. The appropriations-in-aid figures include, among other things, miscellaneous receipts some of which may arise from charges for services. A disaggregation of such receipts is not readily available.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 330: To ask the Minister for Finance the cost to the Exchequer of restoring roll-over tax relief for those obliged to compulsorily sell land; and if he will make a statement on the matter. [22846/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that figures are not available to estimate with any accuracy the cost of introducing a roll-over relief for those involved in compulsory purchases of land.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 331: To ask the Minister for Finance the number of taxpayers expected to be paying at the higher rate in 2005; the percentage this represents; if these estimates differ from the budget estimate; the equivalent figures for 1997, 1998, and 2000; and if he will make a statement on the matter. [22848/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that the numbers and percentage of income earners paying tax at the higher rate of income tax for each of the tax years in question are:

The numbers of income earners above have been rounded to the nearest hundred as appropriate. The percentages are expressed in terms of the numbers of all income earners on the income tax record, including those who are exempt. A married couple that has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

The figures for 2005 are as estimated for budget 2005. The budget estimate is based on historical Revenue data for the short tax year, 2001, adjusted to take account of assumed growth in incomes and in the number of income earners to end 2005. The data refers to tax cases rather than individuals and includes both employees and the self-employed and those on other income such as, for example, pensioners. The data is provisional and subject to revision over time; the next revision to take account of actual data for the 2002 tax year is likely to be available during the second half of 2005.

The effect of last December's budget has been to reduce the percentage of income earners estimated to be paying tax at the higher rate in 2005 from almost 36%, in the absence of the budget income tax measures, to approximately 33% when those measures are taken into account. The Deputy will be aware that major portion of available resources in the budget was devoted to taking the then minimum wage annualised out of the tax net through increases in the employee and basic personal tax credits. The remaining resources were used mainly to widen the standard rate bands, thus ensuring that an additional 52,000 taxpayers will not pay tax at the higher rate in 2005. The budget also removed from the tax net 66,000 income earners who would otherwise pay tax in 2005.