Paudge Connolly (Cavan-Monaghan, Independent)
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Question 510: To ask the Minister for Finance his views on reducing or eliminating excise duty from all motor fuels produced from renewable energy crops; and if he will make a statement on the matter. [29335/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy will be aware that I have previously acknowledged that tax can play a role in the promotion of motor fuels derived from renewable energy crops, more commonly known as biofuels.

A duty exemption scheme for pilot projects in biofuels, was introduced by section 50 of the Finance Act 2004. The purpose of the provision was to allow qualified and conditional relief from excise for biofuel used in approved pilot projects for either the production of biofuel or the testing of the technical viability of biofuel for use as a motor fuel. Under this Scheme, excise relief was granted to eight successful applicants to the scheme from August 2005 for a total of 16 million litres of fuel.

The number of applications made for relief from excise duty under the pilot scheme clearly indicated the strong interest in developing a biofuels industry in Ireland and consequently I made provision in the Finance Act 2006 for a significantly expanded 5 year scheme of Mineral Oil Tax relief. The scope of the relief extends to projects which are not just of a "pilot" nature. This relief scheme, when fully operational, is expected to support the use and production in Ireland of some 163 million litres of biofuels per year, at a total five-year cost of over €200m. The Department of Communications, Marine and Natural Resources are currently assessing applications made for this excise relief, and once this process has been completed, and the necessary EU State Aid approval has been obtained, which is expected to be very shortly, excise relief will be available to those projects that emerge from the application process.

The level of excise relief available is that which had been proposed by the Minister for Communications, Marine and Natural Resources in advance of last year's Budget and is regarded as a figure which is sufficient to match Ireland's output potential in relation to renewable energy crops for motor fuels over the period of the scheme. Opting for a Scheme where project applications are assessed in preference to a general blanket excise relief for biofuels ensures that projects chosen offer a greater degree of quality control to end-users and are best positioned to promote the long-term use of biofuels in the Irish market.

Jack Wall (Kildare South, Labour)
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Question 511: To ask the Minister for Finance his proposals to improve the tax relief on mortgage payments for household owners; and if he will make a statement on the matter. [29343/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that first-time mortgage holders, for the first seven years (five years prior to 1st January 2003), can claim tax relief at the standard rate of tax on the interest paid within the following limits: Single, €4,000; Widowed/Married, €8,000.

For other buyers the limits are: Single, €2,540; Widowed/Married, €5,080.

I am advised by the Revenue Commissioners that mortgage interest relief is estimated to cost the Exchequer €292 million in 2006.

The Budget is a matter of months away. It has been the practice of successive Ministers for Finance not to comment on what measures may or may not be contained in the annual Budget in the run up to that Budget. I do not intend to depart from this practice.