Willie O'Dea (Limerick City, Fianna Fail)
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184. To ask the Minister for Finance if tax relief will be introduced for graduate entry medicine students on the repayment of their student loans, as in the case of a person (details supplied); and if he will make a statement on the matter. [5968/17]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, the Graduate Entry Medicine (GEM) programme provides undergraduate medical education of four years duration to individuals who have previously completed an alternative undergraduate degree. 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.

I previously considered the proposal for the introduction of a tax relief for GEM loans in the context of Budget 2015. At the time, however, I decided that the tax system is not the appropriate way to address the affordability of the GEM programme. The affordability and funding of undergraduate medical education is in the first instance a matter for the Department of Education and Skills, having due regard to the needs and requirements of the health system for medical practitioners.

At the time my officials raised several issues concerning this suggestion. These include the fact that students that are undertaking GEM courses of study will already have benefitted from State support for their primary undergraduate degree and that the proposal could also be seen to discriminate against students pursuing other further academic studies who would inevitably seek a similar tax relief for loan repayments. In addition, any proposed tax relief for GEM programme loans would also need to be extended to similar GEM programmes in all EU Member States.

I would point out that a scheme of tax relief already exists for qualifying 'tuition' fees paid by an individual for a third level education course, including postgraduate courses, up to a cap of €7,000 per annum. The GEM programme is an approved course for the purpose of this tax relief, and therefore students on this programme can already avail of this general relief.

Pat Deering (Carlow-Kilkenny, Fine Gael)
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185. To ask the Minister for Finance if he will consider introducing an initiative similar to the previous section 23 tax reliefs as a tool for revitalising rural towns; and if he will make a statement on the matter. [5969/17]

Michael Noonan (Limerick City, Fine Gael)
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The recently launched "Realising our Rural Potential: Action Plan for Rural Development" by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs contains a detailed list of actions and priorities with a view to revitalising rural Ireland generally. This effort is being led by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs in conjunction with Ministers and officials from other Departments, as well as the Local Authorities and a range of other stakeholders.

A variety of actions included in this plan aim to assist in improving rural towns and making rural Ireland a better place to live. These include the Town and Village Renewal Scheme, under which funding of up to €12 million per annum is available to revitalise rural towns and villages, while there is also a commitment to develop and pilot an initiative to encourage increased residential occupancy in town and village centres.

With regard to introducing a specific tax relief to assist in revitalising rural towns as suggested by the Deputy, EU State Aid rules make it difficult to introduce tax reliefs that target specific geographic areas while excluding others. The Deputy may be aware of the difficulties that my Department encountered in relation to obtaining state aid approval from the European Commission for the Living City initiative. Obviously, the provision of a tax relief that was applicable on a nationwide basis, would be less targeted and potentially damaging to rural towns.

In addition, the Section 23 tax reliefs to which the Deputy refers have proven very costly to the State. Two extensive reviews of property taxation incentives were undertaken by independent economic consultants Goodbody and Indecon in 2005, which recommended that the vast majority of these initiatives be ceased. These recommendations were followed and most of these schemes have been gradually phased out of the tax code since 2006.  I am not in favour of their reintroduction at this time.