Dan Boyle (Cork South Central, Green Party)
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Question 107: To ask the Minister for Finance if the vehicle registration tax relief for flexible fuel vehicles and the excise relief for biofuels measures announced in Budget 2006 have been introduced; the number who have applied for each of the measures; the number of approvals granted in each instance; and if he will make a statement on the matter. [39073/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy is aware, in Budget 2006 I approved a new relief scheme which provides for the remission or repayment of 50% VRT payable or paid on the registration of certain new flexible fuel vehicles that derive vehicle propulsion by means of an engine manufactured in such manner that enables motive power to be sourced from a combination of bioethanol and petrol (E85). The purpose of this scheme is to encourage the development of new technology that is used in the manufacture of vehicles that have flexible fuel capabilities which produce lower pollutant emissions than conventional vehicles fuelled exclusively by petrol/diesel. To date 73 flexible fuel vehicles have been registered in 2006.

The Deputy is also aware that in Finance Act 2006 I provided for a major new 5 year scheme of Excise Relief for Biofuels. The scheme will provide for excise relief on up to 163 million litres of biofuels per annum and cost over €200m over 5 years.

The Scheme was advertised by the Department of Communications, Marine and Natural Resources in late July 2006. Over 100 applications for excise relief were received and I am informed that the assessment panel has forwarded its recommendations to my colleague, Mr. Noel Dempsey TD, Minister for Communications, Marine and Natural Resources. It is expected that approval will be sought from me, shortly, in respect of the granting of excise relief to the projects selected by the assessment panel.

Trevor Sargent (Dublin North, Green Party)
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Question 108: To ask the Minister for Finance if he will report on progress being made regarding the feasibility of the proposal backed by a number of banks, for consumers to be permitted to direct the €40 stamp duty on credit cards towards registered charities and sports organisations. [39083/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have already indicated on a number of occasions that I have no plans to introduce a scheme along the lines proposed.

In line with normal practice, stamp duty revenues are applied by the Exchequer for the common good, as determined by the Oireachtas. Earmarking particular taxes reduces the discretion of Government and the Oireachtas in determining the priority areas in which public money should be spent.

Joan Burton (Dublin West, Labour)
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Question 109: To ask the Minister for Finance the cost in tax foregone of the research and development tax credit; the cost for 2004; the estimated cost for 2005; the estimated cost for 2006; the analysis of the take up of the credit as between Irish indigenous companies and foreign owned businesses; if he has completed a review of the area; and his proposals to improve the levels of research and development particularly by Irish indigenous industry. [39217/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the most recent year for which complete information on the cost to the Exchequer of the tax credit in relation to research and development is the accounting year ended 2004. This is the year in which the tax credit was first introduced. Some 73 claims were made for a total credit of €70.5 million against the corporation tax liability of the companies concerned for 2004. Insofar as it is discernible from the information available, the Revenue Commissioners indicate that, of the numbers of claims made in respect of 2004, about 75% came from Irish indigenous companies and 25% from foreign-owned companies. Data is not yet available to enable accurate estimates of the cost of the tax credit scheme for 2005 and 2006 to be compiled.

I have received a number of proposals in pre-Budget submissions from various sources suggesting changes to the existing R&D tax credit scheme. Officials of my Department, in conjunction with the Department of Enterprise, Trade and Employment and the Revenue Commissioners have consulted with relevant interested parties on this issue, including representatives of Irish indigenous industry, and have been carrying out a preliminary review of the current scheme which has only been in operation for a relatively short period of time. I will take account of that review in the context of my preparations for the forthcoming Budget.