Kathleen Lynch (Cork North Central, Labour)
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Question 78: To ask the Tánaiste and Minister for Finance his proposals for major changes for mortgage interest relief for first-time buyers and those who bought a house in the past seven years in regard to the commitment contained in the programme for Government; if he has an estimate of the cost of the proposed changes; and if he will make a statement on the matter. [29572/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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An Agreed Programme for Government contains a commitment to increase in Budget 2008 the ceiling on mortgage interest relief for first-time buyers and those who bought a house in the past seven years, from €8,000 to €10,000 for single people and from €16,000 to €20,000 for couples or widowed persons. I am informed by the Revenue Commissioners that the estimated cost of this measure on a pre-Budget 2008 basis is about €20 million in a full year. The estimated cost has increased relative to a previous cost estimate which was provided to the Deputy last month as a result of a recent exercise conducted by Revenue in relation to the cost and number of beneficiaries of mortgage interest relief.

Joe Carey (Clare, Fine Gael)
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Question 79: To ask the Tánaiste and Minister for Finance his views on whether the present structure of stamp duty is equitable in its impact; and if the faltering in the housing market presents an opportunity for reform. [29649/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The question of equity in the treatment of housing, of which the stamp duty code is a part, must be seen in the context of the overall tax treatment of property owners. The OECD has reported that Ireland "has some of the most generous tax provisions for owner-occupied housing". Ireland is the only country to allow tax relief on rent, mortgage interest payments, capital gains and capital acquisitions, while not applying an annual property tax.

Furthermore, stamp duty helps fund public services such as health and education, while keeping the direct tax burden low. This facilitates continued economic success, which benefits all taxpayers and their families. This has allowed us to reduce taxes on work and enterprise with clear benefits for the economy as a whole.

It is a long-standing tradition that the Minister for Finance does not comment on tax measures in the run-up to the Budget. I would, however, note that the Programme for Government commitments in this regard have already been met. The Finance (No. 2) Act 2007 introduced a full exemption from stamp duty for first-time buyers in accordance with the commitments made in the Programme for Government. This change brought about a positive impact upon the ability of first-time buyers to purchase their first home. This has widened the choice available to first-time buyers and it has removed an obstacle to first-time buyers establishing their own homes in the neighbourhoods and in the communities where they grew up.