Damien English (Meath West, Fine Gael)
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Question 215: To ask the Tánaiste and Minister for Finance his plans, following a notice of motion passed at the September 2007 monthly meeting of Navan Town Council, to include Navan in future tax incentives for derelict properties in the town; and if he will make a statement on the matter. [22706/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Navan was among the 42 towns and cities that had integrated areas designated for tax relief under the 1999 Urban Renewal Scheme and still benefits from this designation.

Following a major review of various property and area based tax incentive schemes I announced in Budget 2006 that most of the existing reliefs were being terminated subject to certain transitional provisions. These included the Urban Renewal and Town Renewal Schemes. There are no plans to re-introduce schemes along the lines of those terminated in Budget 2006.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 216: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the anomalous treatment of live poultry in the VAT code whereby live poultry is taxed at 13.5%, eggs are taxed at 0% rate and other livestock are taxed at 4.8%; if it is possible to amend the definition of livestock in order that live poultry would be included in the same category as other live animals; and if he will make a statement on the matter. [22728/07]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 217: To ask the Tánaiste and Minister for Finance if his Department will address the competitive disadvantage imposed on the poultry business arising from the 13.5% VAT rate which applies to live poultry in this jurisdiction as opposed to the zero rating in Northern Ireland. [22772/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 216 and 217 together.

The position is that the VAT regime and indeed the rating of all goods and services are subject to the requirements of EU VAT law with which Irish VAT law must comply. While we can retain the zero and livestock rating provisions which were in existence on 1 January 1991, we cannot introduce any new ones. Therefore, it is not possible to apply either a zero or livestock rate to the supply of live poultry.

Under Annex III of the VAT Directive, VAT registered hatcheries are liable to VAT at the 13.5 per cent rate on their supplies of live poultry. VAT registered farmers are entitled to claim VAT on their input costs which would include VAT paid on live poultry.

In relation to unregistered farmers, the Deputy will be aware that such farmers receive compensation for VAT paid on their inputs through the farmers flat rate addition. The flat-rate scheme, which is provided for under the VAT Directive, is a simplified and practical method of applying value-added tax to farming. It compensates unregistered farmers on an overall basis for the VAT charged to them on their purchases of goods and services. This is achieved without applying the normal VAT rules on registration and returns. The farmers VAT flat-rate addition for un-registered farmers was increased in my last Budget from 4.8 per cent to 5.2 per cent. In this regard, the Government's position of maintaining the farmers flat rate addition at the appropriate rate has not changed.

Michael Ring (Mayo, Fine Gael)
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Question 218: To ask the Tánaiste and Minister for Finance the measures planned to make the VRT system barrier aligned towards reducing Ireland's CO2 emissions; and if he will make a statement on the matter. [22792/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In Budget 2007, I announced that it was planned to introduce changes to the current VRT system to take greater account of environmental issues, and in particular Carbon Dioxide (CO2) emissions, with a target date of 1 January 2008. The Programme for Government re-affirms the commitment to introduce measures to further weight VRT in favour of cars with lower emissions.

A public consultation in this regard has taken place. Work on the matter is ongoing and a range of possible options are being considered.