Tommy Broughan (Dublin North East, Labour)
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Question 152: To ask the Tánaiste and Minister for Finance the cost in 2008 of reducing the top rate of income tax by 1%. [30717/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Using the data in the Pre-Budget 2008 income tax ready reckoner, a 1% reduction in the top rate of income tax would cost about €280 million in a full year. The cost quoted is provisional, subject to revision and estimated to the nearest €5 million. The ready reckoner is available on my Department's website, at

www.finance.gov.ie.

Tommy Broughan (Dublin North East, Labour)
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Question 153: To ask the Tánaiste and Minister for Finance the cost in 2008 of delivering commitments he made to the people here on taxation reform during the immediate run-up to the general election 2007. [30718/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I have indicated in recent responses to similar questions, the Programme for Government is an agreed five year programme between the Government parties, in which we have set out our guiding economic and budgetary policy principles. We are fully committed to pursuing the implementation of responsible fiscal policy. Formulation and agreement by Government of spending and taxation plans for 2008 is currently ongoing. These will be presented to the House on Budget Day, 5 December and will represent the first instalment of this Government's delivery of the agreed Programme for Government. As is the norm all Budget measures will be costed in the usual comprehensive fashion.

John Deasy (Waterford, Fine Gael)
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Question 154: To ask the Tánaiste and Minister for Finance the reason for the delays in issuing refunds of tax; if his attention has been drawn to the fact that people are being advised by tax offices that they may not receive their repayment before Christmas 2007; and if he will make a statement on the matter. [30738/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that they are not aware of any delays in issuing tax refunds to PAYE taxpayers and that they are currently being dealt with within the time limit indicated in the Commissioners' customer service standards. I am also informed that repayment cheques for refunds relating to reviews carried out for 2006 and prior years will continue to be generated up to 14 December inclusive and will all be posted prior to the last day for mailing in order to guarantee delivery before Christmas, which is 19 December. Reviews for the current year which are dealt with through the issue of amended Tax Credit Certificates (TCCs) will continue to be generated up to 7 December inclusive. No further amended TCCs for 2007 will issue after this date because employers would not have the opportunity to input them into their payroll systems in time to have any repayment due included in the employee's last pay cheque before Christmas.

Joe Carey (Clare, Fine Gael)
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Question 155: To ask the Tánaiste and Minister for Finance his views on whether the removal of the refund on excise duty on fuel used in passenger transport services will cause hardship for the industry; the alternative scheme he will introduce following the discontinuation of the rebate of excise duty on fuel used in the passenger transport service; when the new scheme will be in place; and if he will make a statement on the matter. [30816/07]

Dinny McGinley (Donegal South West, Fine Gael)
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Question 157: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the concerns and anxieties of passenger transport services at the proposed removal of refund of excise duty on fuel used in these services; and if he will make a statement on the matter. [30848/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 155 and 157 together.

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 on 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 who 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.