Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 258: To ask the Minister for Finance the annual cost of increasing the maximum mortgage interest relief available for first-time buyers on or below the average industrial wage from €800 to €1,000 per annum for single people and from €1,600 to €2,000 per annum for widowed and married people. [38936/06]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 259: To ask the Minister for Finance the annual cost of increasing the maximum mortgage interest relief available for first-time buyers on or below the average industrial wage from €800 to €1,200 per annum for single people and from €1,600 to €2,400 per annum for widowed and married people. [38937/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 258 and 259 together.

I assume that what the Deputy has in mind is the cost of increasing the maximum mortgage interest relief available for first time buyers in the first seven years of a mortgage in certain cases.

I am informed by the Revenue Commissioners that the full year costs to the Exchequer, based on projected 2007 incomes, of the changes referred to by the Deputy are estimated to be in the region of €5 million and €8 million respectively.

However, I would point out that a scheme on the lines suggested would be likely to raise practical, operational and administrative difficulties, in particular for the financial institutions who operate the mortgage interest relief at source system.

These figures are provisional and subject to revision.

David Stanton (Cork East, Fine Gael)
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Question 260: To ask the Minister for Finance the estimated annual cost in terms of revenue foregone on tax and PRSI concessions relating to contributions to approved pension schemes, including occupational schemes, AVCs, PRSAs, and self-employed and director arrangements in each of the most recent three years for which data is available, showing separately figures for PAYE, PRSI and other tax headings, for example, self-employed persons; and if he will make a statement on the matter. [38938/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the relevant available information relates to the estimated cost of tax relief on pension contributions by employers, employees and self-employed and the exemption from tax of income in the pension funds. This information is provided for the three income tax years 2001 to 2003, the latest year for which it is available.

It should be noted in relation to the tax year 2001, that as PAYE taxpayers were charged to tax on their earnings in the period from 6 April to 31 December 2001 and self-employed taxpayers were assessed to tax for that short year on 74% of the profits earned in a 12 month accounting period, the cost figures will not be directly comparable with those of later years.

It should also be noted that these costs are very tentative and that efforts are being made to improve information on the cost of tax relief for pensions. The cost figures in respect of pension contributions by proprietary directors are included in the overall figures provided and a breakdown is not available. With regard to occupational pensions, that is, schemes set up by the employer, the figures in respect of employee and employer contributions are available only in aggregate form on a tentative basis. RACs are used by the self-employed and by employees who are not in pensionable employment.

Estimates of PRSI costs in relation to pension contributions have not been compiled and are not available.