Bernard Durkan (Kildare North, Fine Gael)
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Question 105: To ask the Tánaiste and Minister for Finance if he has received submissions from the IFA or other representative groups in the matter of CGT or CAT; if he has or will examine such proposals in the context of budget 2008; and if he will make a statement on the matter. [28819/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have received pre-Budget submissions from many representative groups on the matter of capital gains tax and capital acquisitions tax. In relation to the IFA submission, this was presented to me at a meeting on 11 October 2007 and its recommendations were discussed with IFA representatives. As the Deputy will be aware, it is not customary for the Minister of Finance to comment on possible tax changes in advance of the Budget.

Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Question 106: To ask the Tánaiste and Minister for Finance if he will meet with members of the private transport sector to discuss alternative measures which will alleviate the serious impact the loss of the fuel excise rebate will have on their industry in view of the fact that they were not informed of this situation until very recently; and if he will make a statement on the matter. [28833/07]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 107: To ask the Tánaiste and Minister for Finance if he will review the recommendation that has been made regarding the removal of the refund of excise duty on fuel used in passenger transport services in view of the fact that private bus operators were not made aware of this imminent decision until recently and the consequences that the matter will have for 2008 contracts with schools and tours; and if he will make a statement on the matter. [28866/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 106 and 107 together.

The Deputies may recall that I have answered Parliamentary Questions on this issue over the past year, including on 4 July 2007. The 2003 EU Energy Tax Directive incorporated special derogations which allowed specific excise duty reliefs to be applied in a number of Member States. In the Irish context, these derogations allowed for reduced rates to apply to fuel used for public transport services which includes school transport services.

While these derogations expired on 31 December 2006, Ireland, along with other Member States, sought retention of its derogations beyond that date. However the European Commission, who are the deciding authority, have to date refused all such requests. The Commission maintain that, in keeping with the EU Energy Tax Directive, Member States must apply at least the EU minimum rates of excise on fuels in such circumstances and that any further favourable excise treatment is not allowable. In this regard the Commission's decision was published to its website in March 2007. At the Commission's behest my officials have indicated that Ireland will avail of the forthcoming Finance Bill to make the necessary legislative changes to conform with the Directive.

In the circumstances, the relevant line Departments that have primary responsibility in this regard are, in conjunction with my Department, exploring alternative non-tax support mechanisms that could be put in place where appropriate to maintain the assistance currently being provided, subject of course to compatibility with EU State Aid requirements. In the interim the reduced rates applicable to fuel used will be maintained.

Eamon Scanlon (Sligo-North Leitrim, Fianna Fail)
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Question 108: To ask the Tánaiste and Minister for Finance the supports available for equestrian centres; and if he will make a statement on the matter. [28872/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that the Business Expansion and Seed Capital schemes provide tax relief to investors in respect of investments in companies operating certain approved tourism facilities, including equestrian centres. Following an extensive review of the schemes in 2006, Finance Act 2007 extended the schemes to 31 December 2013 and increased the aggregate amount that a company can raise under the schemes from €1million to €2 million. The individual investment limits were increased from €31,750 to €150,000 in the case of the Business Expansion Scheme and €100,000 in the case of the Seed Capital Scheme. As the schemes are State aids, these changes required that an application be made to the European Commission for approval. This approval was received in August 2007 and a Commencement Order giving effect to the changes was signed in September 2007.

Apart from the schemes mentioned, there are no other specific tax supports or incentives available for the development of equestrian centres. However, the general position under tax law is that expenses incurred wholly and exclusively for the purposes of a trade are deductible in arriving at taxable profits. Relief is also available for capital expenditure on plant and machinery used for the purposes of a trade. Tax relief, in the form of capital allowances, may still be available under one of the general property-based incentive schemes, depending on where the premises is located and the circumstances of the case.

Under the Urban Renewal, Town Renewal and Rural Renewal schemes, tax relief is available for the construction of certain commercial premises which could include equestrian centres. However, at this stage, as these schemes are now being phased out, relief would only apply in the case of projects already established or those which met the various transitional arrangements put in place as part of the phasing out process. In general, commercial premises must be in use either by an owner-occupier for the purposes of a trade or profession or by a lessee who is renting the premises on commercial terms.

In order to qualify for tax relief under the Urban and Town Renewal schemes the relevant local authority must certify that the particular development is consistent with the aims, objectives and criteria of the particular scheme. This does not apply to the Rural Renewal scheme. This scheme applies to the entire counties of Leitrim and Longford and to certain areas of Roscommon, Sligo and Cavan. The Finance Act 2006 provided for the ending of these schemes on 31 July 2008. However, as already indicated, this extended deadline applies only to pipeline projects where certain transitional conditions were met.

Information on the various property-based incentive schemes is available on the Revenue website at www.revenue.ie in the 'Leaflets and Guides' section and in the publication 'Tax Briefing' Issues 63, 64 and 65, also available on the Revenue website, contain articles on the transitional arrangements for the phasing out of the various property incentive schemes.