John Perry (Sligo-Leitrim, Fine Gael)
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Question 144: To ask the Minister for Finance if he has plans to exempt the 21% VAT charged on security alarms for elderly old aged pensioners; and if he will make a statement on the matter. [38510/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The purchase of a pendant alarm system and its monitoring are subject to the standard rate of 21%. The installation of such a system, where it includes the purchase of such an alarm, is generally subject to the reduced rate of 13.5%.

Under the Sixth VAT Directive, member states may retain the zero rates on goods and services which were in place on 1 January 1991 but cannot extend the zero rate to other goods and services. As the supply of home security systems was not subject to the zero rate on 1 January 1991, it is not possible to apply the zero rate to these goods or services. There is no provision in EU VAT law that would allow for the abolition of VAT on home security systems.

However, I would add that under the Value Added Tax (Refund of Tax) (No. 15) Order 1981, it is possible to obtain a VAT refund in respect of the purchase of a pendant alarm system, as it is considered a medical device for the purpose of this refund order. Monitoring and maintenance fees are not recoverable. Applicants should contact the Revenue Commissioners, VAT Repayments, Unregistered Section, Kilrush Road, Ennis, County Clare.

As the Deputy is aware, a scheme of community support for older people is operated by the Department of Community, Rural and Gaeltacht Affairs. The purpose of the scheme is to encourage and assist the community's support for older people by means of a community based grant scheme to improve the security of its older members. Funding under the scheme can be provided for small scale security equipment designed to strengthen points of entry to the dwelling; for security lighting; for smoke alarms; and for the once-off cost of installing socially monitored personal alarm systems. Annual monitoring fees or maintenance fees associated with socially-monitored alarm systems are not provided for under the scheme.

The VAT refund for the purchase of a personal security alarm by or on behalf of a disabled or elderly person combined with the scheme of community support for older people outlined above are important measures that go towards ensuring that those who are most in need of security systems can avail of them.