Joan Burton (Dublin West, Labour)
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Question 331: To ask the Minister for Finance the way in which statutory instruments are generated in relation to the European taxation on savings directive; if they are voted through at Dáil Éireann level; if the EU law transfer into national law is automatic; and if he will make a statement on the matter. [10480/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The European Communities Act 1972 provides for the making of regulations transposing EU directives into Irish law, in appropriate circumstances. In other circumstances, other routes to transposition may be appropriate, for example, through changes in primary legislation.

Council Directive 2003/48/EC — OJ No. L 157, 26.6.2003, p.38 — of 3 June 2003 concerning the taxation of savings income was transposed into Irish national law on 19 December 2003 by way of regulation, SI 717 of 2003. These regulations had immediate statutory effect and were then confirmed by section 90 and Schedule 4 to the Finance Act 2004 which was enacted on 25 March 2004.

Two further statutory instruments associated with the implementation of Council Directive 2003/48/EC, the savings tax directive, were laid before the Houses of the Oireachtas on 4 July 2005. For the purposes of clarity a reference to one of these, SI 317 of 2005, is contained in section 124 of Finance Bill 2006 as passed by Dáil Éireann.

The details of these statutory instruments are as follows. The Taxes Consolidation Act 1997 — sections 898H, 898I, 898J, 898L and 898M (Commencement) Order 2005, SI 286 of 2005, provides for the commencement of sections 898H, 898I, 898J, 898L and 898M of the Taxes Consolidation Act 1997 with effect from 1 July 2005. These sections were inserted in the Taxes Consolidation Act 1997 by the Finance Act 2004 and amended by the Finance Act 2005.

The European Communities (Taxation of Savings Income in the form of Interest Payments) Regulations 2005, SI 317 of 2005, also amend the original implementing legislation in a number of ways, including reflecting the correct interpretation of derogations contained in Article 6.6 of the savings tax directive. This statutory instrument was required on foot of an agreement by all EU member states at ECOFIN.