Tommy Broughan (Dublin North East, Independent)
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65. To ask the Minister for Finance if his Department is researching the likely impacts of the policy of quantitative easing, being pursued by the European Central Bank, on Irish citizens and households. [6392/15]

Tommy Broughan (Dublin North East, Independent)
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66. To ask the Minister for Finance if his Department is considering tax measures to offset the negative impacts of quantitative easing in furthering re-enforcing serious inequality in Irish society. [6393/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 65 and 66 together.

The announcement by the ECB on 22nd January to purchase €60 billion of public and private assets per month from March is intended to help reverse the decline in inflationary expectations and ultimately to ensure price stability in the euro area. By reducing the likelihood of deflation, this should help support consumer spending and investment.

Ireland should benefit from quantitative easing (QE) in a number of ways:

- Through improved financing conditions for households and firms; 

- By raising demand in the euro area, Ireland s single largest export destination;

- Through the depreciation of the currency which improves the competitiveness of Irish exports outside the euro area;

- Through the restoration of price stability which will help reduce the real debt burden.

My Department will publish updated economic forecasts in April taking account of the impact of QE.

And while QE will likely be beneficial for the Irish economy, there is nevertheless the possibility of side effects such as increased asset prices. 

In this regard, I would point out that Capital Gains Tax applies on any chargeable gain from the disposal of many assets, including non-principal private residences and to equity gains. Stamp Duty also applies to the purchase of assets such as property and shares. Therefore, in the event of increases in asset values, there would be a proportionate increase in the tax paid. 

Finally, I would point out that all tax rates and regimes are held under continuous review by my Department and that any changes are made in the context of the annual budgetary cycle, including the Finance Bill.