Jack Wall (Kildare South, Labour)
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Question 103: To ask the Tánaiste and Minister for Finance the number, name and location of private hospitals and clinics in receipt of tax reliefs for private hospitals and their construction, extension and other capital works for each year from the initiation of the various tax reliefs for such hospitals from the inception of the reliefs to date; the cost of such reliefs per hospital or clinic; the cost to the Exchequer of such reliefs to date; and if he will make a statement on the matter. [29598/07]

Jack Wall (Kildare South, Labour)
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Question 112: To ask the Tánaiste and Minister for Finance the number of applications for tax relief for private hospitals and clinics received to date; the qualifying criteria for such reliefs; if the hospital or clinic has to meet standards or criteria; and if he will make a statement on the matter. [29599/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 103 and 112 together.

Capital allowances are available in respect of capital expenditure incurred on the construction or refurbishment of a private hospital which falls within the definition of a qualifying hospital set out in Section 268 (2A) of the Taxes Consolidation Act 1997.

To be a qualifying hospital in accordance with the legislation, a private hospital must meet certain capacity requirements. It must have an operating theatre or theatres, related diagnostic and therapeutic facilities, and it must be able to provide a range of specified services. The hospital must also give an undertaking to the Health Service Executive to make available at least 20% of its capacity to public patients awaiting in-patient or out-patient hospital services at a fee rate of not more than 90% of that which would be charged to private patients. The Health Service Executive is required to certify that the private hospital meets these criteria. Such certification is required annually for a period of either 10 or 15 years from the time that the hospital is first used, or first used following refurbishment depending on whether this occurred before or after 1 February 2007, respectively.

I am informed by the Revenue Commissioners that information on the scheme of tax relief for private hospitals was for the first time specified and separately included in personal income tax returns for the tax year 2004, which were due for filing in October, 2005. No specific Revenue information on the cost of the scheme is available for the tax year 2002 (when the scheme of relief for private hospitals was introduced) or for 2003. Based on the information that has been received and collated to date for the tax year 2004, there were 37 claims for €4.5 million capital allowances for the construction of private hospitals. This figure would correspond to a maximum Exchequer cost of the order of €1.9 million for these returns in terms of income tax foregone.

Corresponding data available for the tax year 2005 indicates that there were 60 claims for €7.7 million capital allowances for the construction of buildings used for private hospitals. This figure would correspond to a maximum Exchequer cost of the order of €3.2 million for these returns in terms of income tax foregone.

Data for the tax years 2006 is not yet available as the income tax returns for those years was not due for filing until October 2007. Other information such as the number, name and location of the relevant private hospitals in respect of which claims for capital allowances have been made is not available to the Revenue Commissioners.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 104: To ask the Tánaiste and Minister for Finance his plans to have Annex III of the EU VAT Directive amended to include road safety products and thereby reduce the rate of VAT applicable on such products; and if he will make a statement on the matter. [25232/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under the VAT Directive Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. As Annex III does not list the supply of road safety products, the rate that can apply to such products is the standard VAT rate which in Ireland is 21%.

In relation to amending Annex III of the VAT Directive, the Deputy will be aware that this could only be done in the context of an overall review at Community level of reduced rates. Whilst the Commission has launched a debate on reduced rates in July 2007, as yet, no specific Commission proposals have been brought forward. Generally, any significant review of the application of VAT across the different EU Member States can be complex.