Fergus O'Dowd (Louth, Fine Gael)
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122. To ask the Minister for Finance his views on a matter (details supplied) regarding tax relief on social housing loans; and if he will make a statement on the matter. [16816/16]

Michael Noonan (Limerick City, Fine Gael)
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Some of the details supplied in connection with this question are unclear. However, it would appear to refer primarily to a proposal to allow tax relief on the capital repayment element of a loan for new social housing.

The Deputy will be aware that I introduced a new tax relief in Finance Act 2015 which allows a full 100% mortgage interest deduction where a landlord undertakes, for a period of at least three years, to provide accommodation to tenants in receipt of social housing supports. This is in place of the 75% cap on mortgage interest relief deductibility which normally applies in respect of rented residential properties. The relief is designed to incentivise landlords to commit to letting their property to tenants in receipt of social housing supports over the longer term, thereby improving the stability of supply of property to such tenants.

This relief was one element of an overall package of measures designed by the Government aimed at stabilising rent and boosting supply in the housing market which, in my view, is the most appropriate and effective route to addressing rental price increases driven by supply constraints. To extend this relief further to allow for a deduction for the capital repayment element of a mortgage, as proposed in the Deputy's question, would in effect see the State fully subsidise the purchase by a private individual of a residential rental investment property. I do not believe that this would be an appropriate use of State resources at this time.

In relation to social housing, the Deputy will be aware that there are a number of non-tax commitments in the Programme for a Partnership Government, including a commitment to significantly increase and expedite the delivery of social housing units.

Peadar Tóibín (Meath West, Sinn Fein)
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123. To ask the Minister for Finance if he will broaden the criteria for granting a tax relief (details supplied). [16821/16]

Michael Noonan (Limerick City, Fine Gael)
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The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.

To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.

The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the repayment of excise on fuel used by members of the Scheme, the Scheme represented a cost of €50.3 million to the Exchequer in 2015, an increase from €48.6 million in 2014. These figures do not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme. 

I am aware that the Ombudsman has made comments regarding the eligibility criteria of the Disabled Driver and Disabled Passengers Scheme. The Ombudsman stated that, in his opinion, the criteria were narrowly focused and prescriptive. The Scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise.

I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.