Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 267: To ask the Minister for Finance if he will now reassure potential investors regarding the benefit to them of the four and ten year national solidarity bonds in view of the decision to cancel section 23 relief; and if he will make a statement on the matter. [1089/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In Budget 2010, I announced the Government's intention to launch a 10 year National Solidarity Bond, the purpose of which is to allow citizens an opportunity to invest and provide money to the State to stimulate economic recovery and to assist in the maintenance and creation of employment. The necessary legislative basis was provided in the 2010 Finance Act and the Bond, which was launched on Tuesday 4 May 2010, has been very successful with some €350m invested by 16,200 customers during 2010. In Budget 2011, I announced the introduction of a new, four-year, National Solidarity Bond to complement the ten-year National Solidarity Bond. The bond will pay a coupon each year and a bonus for those who hold the bond to maturity.

All State savings which are managed by the National Treasury Management Agency are a direct unconditional obligation of the Irish Government and the Government is committed to repaying all State Savings without any limit.

As regards Section 23 reliefs, the Government committed in the Joint Programme for Government to ending unnecessary tax reliefs. The measures announced in the Budget for 2011 will achieve the phased abolition of the property-based "legacy" tax reliefs, including Section 23 relief, and will eliminate the remaining cost of such schemes to the Exchequer.