Written Answers. - Parliamentary Debates - Houses of the Oireachtas

Questions— 14 February 2012. Written Answers
Minister for Finance (Deputy Michael Noonan): Neither I, nor officials from the Department
of Finance have responsibility for the decisions of KBC Bank regarding the passing on of the
ECB interest rate reductions to mortgage customers, nor have I any powers to compel the
Bank to make a statement on the interest rate that is charged to their mortgage customers.
The lending institutions in Ireland are independent commercial entities. Ultimately the pricing
of financial products, including standard variable mortgage interest rates, is a commercial
decision for the management team and board of each lending institution, having due regard to
their customers and the impact on profitability, particularly where the cost of funding to each
lending institution, including deposit pricing, is under pressure. The Deputy will be aware of
the Central Bank’s Code of Conduct on Mortgage Arrears, a copy of which can be accessed
on www.centralbank.ie.
Question No. 170 answered with Question No. 162.
Tax Code
171. Deputy Pearse Doherty asked the Minister for Finance if the activity in commercial
property transfers has been monitored since budget 2012 was announced; and if the reduction
in the higher rate of stamp duty has any noticeable impact on that activity. [8141/12]
Minister for Finance (Deputy Michael Noonan): As I announced in the Budget, a single
Stamp Duty rate of 2 per cent will apply to non-residential property transactions executed on
or after Budget night 6 December 2011. A significant proportion of the Stamp Duty yield
received since 6 December from commercial property transactions is likely to relate to transactions
which predate the Budget change and accordingly it is too early at this stage to determine
what impact the change will have on the Stamp Duty yield or the level of activity.
Question No. 172 answered with Question No. 162.
173. Deputy Terence Flanagan asked the Minister for Finance if provision was made in the
2011 Finance Act for tax relief to be claimed for home energy improvements; if so, the way a
person may make an application; if not, the reason there is a delay in introducing this; and if
he will make a statement on the matter. [8159/12]
Minister for Finance (Deputy Michael Noonan): Section 13 of Finance Act 2011 provided
for income tax relief at the standard rate for expenditure incurred by individuals on a range of
works carried out to improve the energy efficiency of residential premises situated in the State.
The underpinning legislation for the scheme was subject to Commencement Order. However,
that legislation, on review, was found to have flaws and would have required amendment before
it could be implemented.
As part of the announcement in the Jobs Initiative, the Government undertook to provide
further funding for the grants available under the Better Energy Homes scheme operated by
the Sustainable Energy Authority of Ireland (SEAI). Because of these circumstances, I decided
to review the requirement for a co-existing tax incentive for similar works and, following this
review, I decided not to proceed with the introduction of the tax relief scheme.
It is worth pointing out that it was never envisaged that individuals could qualify for both
the grants and the proposed tax relief. Refocusing the funding such that it is provided via the
grants scheme clarifies Government support measures for energy efficiency works.
Liquor Licences
174. Deputy Seán Kenny asked the Minister for Finance the number of beer, wine and spirits
387