Alan Shatter (Dublin South, Fine Gael)
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Question 176: To ask the Minister for Finance the consideration given by him to date on introducing a new scrappage scheme to stimulate business in the motor industry; his view on the proposal of a group (details supplied) that such a scheme be based on a 50% refund of the VRT on the sale of a new car subject to a minimum of €1000 and the imposition of an appropriate maximum when a vehicle of ten years or older is scrapped; the action proposed by him to introduce such a scheme; his views on whether such a scheme would generate increased tax revenues and help to preserve jobs in the motor trade; and if he will make a statement on the matter. [11024/09]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 192: To ask the Minister for Finance if he has assessed the case made by the motor industry for a car scrappage scheme to promote movement of the stock of cars. [11223/09]

Michael Creed (Cork North West, Fine Gael)
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Question 204: To ask the Minister for Finance the proposals he has to assist the motor vehicle industry to deal with the large stock of second-hand cars; if he has consulted with an organisation (details supplied) on this matter; and if he will make a statement on the matter. [11712/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 176, 192 and 204 together.

I am conscious of the decline in new car sales both in Ireland and internationally, due to the contraction in economic activity. I and officials of my Department have met with representatives of the motor industry, where they have put forward various proposals regarding the introduction of a car scrappage scheme and the existing stock of second hand cars. Any such proposals will be considered in the context of the forthcoming Supplementary Budget.

Alan Shatter (Dublin South, Fine Gael)
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Question 177: To ask the Minister for Finance if his attention has been drawn to the fact that 4000 jobs have been lost in the motor industry in the course of the past 12 months; his views on whether a failure to take emergency measures could result not only in further job losses but in the closure of a substantial number of car dealerships and further job losses during 2009; the consideration given by him to date to the introduction of a VAT margin scheme as proposed by a group (details supplied) to replace the current VAT special scheme in order that car dealers are not required to pay VAT on cars sold by them based on a value in excess of the sale price of a car and the introduction of appropriate transitional arrangements in the interest of maintaining the viability of the industry and preserving jobs; and if he will make a statement on the matter. [11025/09]

P J Sheehan (Cork South West, Fine Gael)
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Question 178: To ask the Minister for Finance if he will respond to correspondence from a person (details supplied) in County Cork; and if he will make a statement on the matter. [11041/09]

Olivia Mitchell (Dublin South, Fine Gael)
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Question 180: To ask the Minister for Finance his views on proposals from a group (details supplied) in respect of VAT changes to a margins system with compensation for future inability to claim back VAT; and if he will make a statement on the matter. [11044/09]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 191: To ask the Minister for Finance if his attention has been drawn to an anomaly in the way VAT on second hand cars is structured, such that VAT is based on the price at which the car is acquired even it has to be sold at a considerable discount in the current market; and if he will make a statement on the matter. [11222/09]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 198: To ask the Minister for Finance if his attention has been drawn to the fact that under a VAT claw-back scheme, car dealers are forced to pay VAT on the value at which second-hand cars were brought into stock even if they are forced to sell these cars at a significant discount from the original price and that discounts are having to be made to sell second-hand cars; and his views on the various proposals put forward by the industry to remedy this problem. [11657/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 177, 178, 180, 191 and 198 together.

I am conscious of the decline in the car industry in Ireland and internationally due to the contraction in economic activity.

In the case of second-hand cars a special VAT scheme is in place in Ireland, following strong representations from the motor industry, rather than the Margin Scheme operated in most other Member States. The special scheme allows motor dealers, at the time of purchase, to claim credit for residual input VAT which is considered to be included in the cost of acquiring a car from a customer. When the car is subsequently resold, the VAT is chargeable on the full sale price of the car or on the original purchase price paid by the dealer, whichever is the higher. This is necessary because the dealer has already been granted a credit in relation to the residual input VAT incurred. The special scheme allows dealers the maximum benefit by allowing an immediate deduction of residual VAT at the point of purchase. The VAT credit already allowed on second-hand cars must, despite the industry's view, be seen for what it is, i.e. money advanced to dealers by the Exchequer which they are only repaying when they resell the second-hand cars.

Although with the changing economic circumstances dealers have found themselves selling traded-in second hand cars at a loss, which is increasingly giving rise to clawbacks of VAT situations for dealers, it is not possible to write-off the VAT credit already allowed to the dealers on second-hand cars. In this context the Revenue Commissioners have however granted concessionary treatment which allows dealers to postpone payment in respect of the clawbacks over the past number of months until 19 May 2009.

I am not opposed to the introduction of a Margin Scheme for second-hand cars, but not on the basis, as is being proposed by the motor industry, that the outstanding VAT credit already provided to dealers in relation to their existing stock of second-hand cars would be written-off in full.