Paudge Connolly (Cavan-Monaghan, Independent)
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Question 496: To ask the Minister for Finance if he has plans to provide tax incentives for the restoration of derelict buildings; and if he will make a statement on the matter. [24925/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I indicated to the Deputy in my reply to him of 4 May 2005, there has never been a tax incentive scheme targeted exclusively at the restoration of derelict buildings in general. However, there are provisions under the area based tax incentive schemes such as the urban renewal scheme, the town renewal scheme and the rural renewal scheme as well as under the countrywide refurbishment scheme for tax relief in respect of refurbishment and conversion expenditure incurred on certain properties, although there is no requirement under these schemes that qualifying properties must be derelict. With regard to the area based schemes in budget 2005, I announced that I had directed my Department, together with the Revenue Commissioners, to undertake a thorough evaluation of the effects of all relevant tax incentive reliefs including certain area based schemes. In this context I also confirmed in the budget that the termination dates laid down previously in Finance Act 2004 in respect of a number of area based tax incentive schemes would remain unchanged.

I have been informed by the Minister for the Environment, Heritage and Local Government that section 23 of the Derelict Sites Act 1990 provides for the imposition of an annual derelict sites levy in respect of urban land registered by the relevant local authority for the purposes of the Act. The amount of this levy is three per cent of the market value of the urban land concerned, and remains payable until such time as the land ceases to be derelict. Revenues from the derelict sites levy may be applied by a local authority for the purpose of their functions generally, and may be directed to the purchase of lands at the discretion of the local authority. I am satisfied that this levy, consistently applied and rigorously enforced, constitutes a sufficient financial incentive to property owners to eliminate dereliction and consequently I have no proposals at this time to introduce a tax incentive scheme for the restoration of derelict buildings.

Seán Haughey (Dublin North Central, Fianna Fail)
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Question 497: To ask the Minister for Finance the reason for stamp duty on second-hand houses; his views on whether the present system penalises purchasers trading up to their second or third house; his further views on whether the present system is unfair due to the fact that the salary of the buyer is not taken into account, the fact of the purchase being undertaken by a single person or a couple is not taken into account and the equity earned on the existing property is not taken into account; if the stamp duty regime unduly penalises persons buying houses in Dublin; if he will review these issues; and if he will make a statement on the matter. [24926/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Stamp duty is a duty on the transfer of title to property. It has been in existence in some form since the 1690s and has not in general hindered persons moving, trading up or settling down. As the Deputy will appreciate, stamp duty is a significant contributor to the Exchequer which permits Government spending on public services such as health and education. Stamp duty receipts also allow for a broader tax base than would otherwise be possible. The stamp duty yield from residential property in 2004 was €752 million.

All owner-occupiers are generally exempt from stamp duty on new houses where the property is 125 sq. m. or less. In addition, mortgage interest relief is available at source in respect of interest paid on moneys borrowed for the purchase, maintenance, repair or improvement of that taxpayer's main residence, including second-hand houses. Capital taxation is always based on the market value of the property and, accordingly, stamp duty is calculated by reference to the value of the residence being transferred. The only distinction made for stamp duty is between owner-occupiers and investors, particularly the owner-occupiers of new houses. Accordingly, there are no plans to change the stamp duty code to take account of the issues raised by the Deputy.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 498: To ask the Minister for Finance the full range of stamp duties which apply to the issue of bank cards and the conduct of bank transactions; his views on the unfair system whereby a double stamp duty is applied when a bank card fulfils two functions such as ATM and Laser; and if he will consider reforming these changes so that they better promote the use of cost efficient electronic transfer mechanisms. [24927/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Stamp duty exists on various financial cards in order to provide Exchequer revenue. The stamp duty on cheques, bills of exchange and promissory notes has existed for many years and when electronic means of money transfers were subsequently introduced, stamp duty was gradually extended to these products to ensure that the stamp duty from cheques, etc., was not eroded. The current annual rates of stamp duty are as follows: credit card account and charge card —€40; ATM card without a Laser function —€10; — Laser card without an ATM function —€10; combined ATM and Laser card —€20.

The stamp duty applies irrespective of the volume of bank transactions made. I do not believe that these charges are excessive, and there is no evidence that they significantly discourage people from using these forms of transaction. Combined ATM and Laser cards carry a higher stamp duty than the single function ATM or Laser cards, reflecting the wider use of the double-function card. It would not seem equitable to charge the same for a single function card as a double function card.

Stamp duties on financial cards are significant contributors to the Exchequer and are in accordance with the overall taxation policy of widening the tax base in order to keep tax rates generally low. In 2004, the stamp duty on ATM, Laser and combined cards contributed €35.3 million to the Exchequer while the yield from credit cards was €59 million. As the Deputy will be aware, I indicated in my 2005 budget speech that the Finance Bill would contain measures to eliminate a double stamp duty charge on the switching of financial cards. These measures were contained in section 128 of the Finance Act 2005. There are no plans to amend these charges.