Michael Lowry (Tipperary North, Independent)
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Question 137: To ask the Minister for Finance if he will introduce a scheme (details supplied) in an effort to boost the number of home computer users; and if he will make a statement on the matter. [25420/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have no plans to introduce a scheme along the lines suggested by the Deputy.

Taxation policy over recent Budgets has been aimed at reducing the tax burden thereby increasing disposable income for citizens to spend as they see fit.

As prices continue to fall, many people will buy computers anyway without the existence of tax relief. In real terms, the prices of personal computers have reduced substantially in recent years while their power and functionality has increased. In 1994 a personal computer cost in the region of €2,540 (£2,000) and amounted to about 20% of the net annual income of a single person on average earnings. Today, a home personal computer with good functionality may be purchased for about €700 which is under 3% of net average earnings. Inevitably, therefore, there would be likely to be a sizeable deadweight cost associated with any such initiative.

I understand that the Home Computing Initiative referred to by the Deputy was discontinued by the UK Government in the 2006 Budget because it was not effective at targeting those with poorest access to technology such as those not in employment and the elderly.