Andrew Doyle (Wicklow, Fine Gael)
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Question 97: To ask the Tánaiste and Minister for Finance the action he is taking to ensure that defibrillators used by voluntary community groups for non-commercial purpose are exempt from VAT at 21%. [14585/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The position is that in matters relating to the VAT rating of goods and services, I am constrained by the requirements of EU VAT law with which Irish VAT law must comply. In this regard, I would point out that the rate of VAT that applies to a particular good or service depends on the nature of the good or service and not on the status of the consumer. In this case, there is no provision in EU law that would permit the removal or reduction of VAT based on the social or economic status of the consumer.

In relation to the VAT rate that applies to defibrillators, the position is that under the VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. The zero VAT rate cannot therefore be applied to defibrillators which are subject to the standard rate.

In addition, Member States may only apply the reduced VAT rate to those goods and services which are listed under Annex III of the VAT Directive. While Annex III does include the supply of medical equipment for the exclusive personal use of a disabled person, it does not include defibrillators for general use. The reduced rate cannot be applied to the supply of defibrillators.

Therefore the only rate of VAT that can apply to the supply of defibrillators is the standard VAT rate which in Ireland is 21%.

Brendan Howlin (Wexford, Labour)
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Question 98: To ask the Tánaiste and Minister for Finance if his attention has been drawn to the fact that students enrolled in the graduate medicine programme at various universities in the State are required to contribute up to €12,000 per year from their own resources towards the annual tuition fee; if it is equitable that tax relief on tuition fees for such students is limited to outlay of €5,000 per year; if he will take steps to amend this unfair anomaly; and if he will make a statement on the matter. [14823/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I assume the Deputy is referring to the new graduate entry programme which has been introduced as part of the plan to increase the number of medical graduates overall and to expand opportunities for entry to medicine. The graduate entry programme provides undergraduate medical education of four years duration and it has been developed to produce medical graduates with the ability to successfully undertake an internship and thereafter to gain full registration with the Medical Council. The programme is supported by a combination of student fees, State funding and other income. Provision has been made for students from disadvantaged backgrounds participating in the programme through providing hardship funds and access to student loans.

While in this case the fees are high, in the majority of cases where third level tuition fees are payable they are at much lower levels. I would also point out that those participating in the programme must already have acquired an undergraduate degree, the fees for which would have been covered by the State in the vast majority of cases. Furthermore, the Government allocated €263 million towards student support for 2008, an increase of 9%. The largest component of this spending is maintenance grants. These provisions ensure that State support in this area is directed towards those who most need it. It should also be noted that in 2008 total current funding for third level education is almost €1.9 billion, while €190 million is being allocated towards third level capital funding.

As the Deputy may be aware, the level of tuition fees on which tax relief can be claimed was increased by 57%, from €3,175 to €5,000, as recently as Budget 2005. The question of any further increases would be a matter for consideration in the context of future Budgets.