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Dáil Éireann debate -
Tuesday, 30 Sep 2014

Vol. 852 No. 1

Written Questions Nos. 176-181

Back to Education Allowance Eligibility

Robert Dowds

Question:

176. Deputy Robert Dowds asked the Tánaiste and Minister for Social Protection her views on amending the criteria for eligibility for the back to education allowance to make eligible persons who have been out of work for a cumulative period of 180 days over the previous three years, as a means of removing an incentive for persons to stay on jobseeker's allowance and also to encourage more persons who are out of work to retrain and reskill to meet the needs of the modern economy. [37104/14]

The back to education allowance (BTEA) programme is designed to support certain recipients of social welfare payments to pursue courses of education with the objective of improving their chances of accessing work. To qualify, a customer must satisfy a number of conditions such as, inter alia, being a certain age, in receipt of a prescribed social welfare payment for a specified time period, and pursuing a full-time course of study leading to a recognised qualification in a recognised college. A waiting period is considered necessary in the context of targeting scarce resources, to prevent exploitation of the scheme, and to meet the policy objectives with respect to activation. BTEA should not be seen as an alternative to student income supports provided by the Department of Education and Skills.

With respect to jobseekers, a customer may qualify for BTEA if they have been on a jobseeker’s payment for 78 days if they wish to pursue a second level option. This increases to 234 days if they wish to pursue a third level option. Periods on eligible social welfare payments that are not broken by more than twelve months can be combined in determining the required qualifying period for BTEA. Given the nature of BTEA, it is possible that the scheme can provide an incentive for customers to remain on a jobseekers payment to qualify. The risk of this occurring has been significantly reduced by improved case management of all new jobseekers and new selection processes for BTEA which were introduced during 2014. These include enhanced case officer interventions, linking applications to identified skill shortages in the economy, and the assessment of a customer’s current skills and education attainment.

I have no proposals to make further changes to the BTEA eligibility criteria at this time.

Jobseeker's Allowance Applications

Olivia Mitchell

Question:

177. Deputy Olivia Mitchell asked the Tánaiste and Minister for Social Protection if she will provide in tabular form the number of unsuccessful jobseeker applicants under 24 years of age whose application was unsuccessful due to the jobseeker's means assessment of parental income at the Nutgrove social protection office, Dublin 14; and if she will make a statement on the matter. [37105/14]

The figures for Nutgrove Social Welfare Local Office that the Deputy has requested are as follows:

Year

No.

2013

26

2014 (to date)

9

One-Parent Family Payment Payments

Barry Cowen

Question:

178. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection if she will review an allowance in respect of a person (details supplied) in Dublin 15. [37160/14]

The person concerned has been assessed with means of €135 per week against her normal one parent family payment entitlement of €247.60 leaving a balance of €112.60 due to her. The means calculation is based on her receiving maintenance payments of €303 per month and the fact that her mortgage is being paid by her former spouse. The person concerned appealed this decision to the independent Social Welfare Appeals Office; however her Appeal was disallowed.

If the person concerned has evidence that the level of maintenance being paid by her ex-spouse has changed, her means can be reviewed. She should furnish such evidence to her Intreo Office as soon as possible.

Social Welfare Appeals

Noel Coonan

Question:

179. Deputy Noel Coonan asked the Tánaiste and Minister for Social Protection when an invalidity pension appeal will be finalised in respect of a person (details supplied) in County Tipperary; and if she will make a statement on the matter. [37183/14]

The Social Welfare Appeals Office has advised me that the appeal by the person has been withdrawn on the basis of a revised decision by Invalidity Pension Section on 26 September 2014 which was favourable to the person concerned.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Question No. 180 answered with Question No. 131.

Departmental Agencies

Seán Kyne

Question:

181. Deputy Seán Kyne asked the Tánaiste and Minister for Social Protection if she will provide in tabular form all of the State agencies, bodies, organisations and working groups under her Department's remit, the core duties and functions of same, the number of staff at same, the budget of each for 2013 and proposed budget for 2014, the date of establishment of the agencies or organisations and the legislation, primary or otherwise, from which they derive their powers. [37211/14]

I am aware that the Deputy has clarified that his question relates to the statutory bodies operating under the aegis of the Department of Social Protection. These bodies are the Pensions Authority, the Office of the Pensions Ombudsman, the Citizens Information Board, and the Social Welfare Tribunal. Details requested by the Deputy in relation to these bodies are outlined in the following table.

Statutory Bodies

Statutory Body

Core Duties and Functions

Number of Staff Serving

Budget Allocation 2013

Budget Allocation 2014

Date of establishment of the Body

Legislation primary or otherwise from which they derive their powers

The Pensions Authority

The Pensions Authority (formerly known as the Pensions Board)

The main functions of the Authority are:

To monitor and supervise the operation of the Pensions Act and pension developments generally;

To issue guidelines on the duties and responsibilities of pension scheme trustees and Codes of Practice on specific aspects of their responsibility;

To encourage the provision of appropriate training for trustees;

To advise the Minister on standards for trustees;

To investigate complaints concerning possible non-compliance with the pensions legislation and to resolve disputes that may arise in relation to some aspects of the legislation and;

To advise the Minister for Social Protection on pensions matters generally

47

The operations of the Pensions Authority are financed by annual fees payable to it by occupational pension schemes and by providers of Personal Retirement Savings Accounts.

N/A

Pensions Board 1990

Pensions Authority 7 March 2014

The Pensions Acts 1990 to 2014

The Office of the Pensions Ombudsman

The Pensions Ombudsman investigates and decides complaints and disputes from individuals about their occupational pension schemes, Personal Retirement Savings Accounts (PRSAs) and Trust RACs.

6 Established

2 Contracted

€1,005,000

€1,080,000

28 April 2003

The Pensions Acts 1990 to 2014

The Citizens Information Board (CIB)

The CIB is the statutory body responsible for supporting the provision of information, advice (including money and budgeting advice) and advocacy services to citizens on a wide range of public and social services.

73.4 whole time equivalents (wte’s) as at 31/8/2014

€47.45 million

€ 46 million

Commencement order of the Comhairle Act signed in March 2000.

Comhairle was re-named the Citizens Information Board under the Citizens Information Act 2007.

The Citizens Information Acts 2000 to 2011

Social Welfare Tribunal

The Social Welfare Tribunal is a statutory body set up to deal with cases where entitlement to Jobseekers Benefit or Allowance is refused due to an involvement in a trade dispute.

5 Board members

€2,000

€1,000

1982

Chapter 5 of Part 10 of the Social Welfare Consolidation Act 2005

Employment Investment Incentive Scheme

Peadar Tóibín

Question:

182. Deputy Peadar Tóibín asked the Minister for Finance to state the level of investment that has been generated through the employment and investment incentive on an annual basis, the number of enterprises that have benefited, the number of jobs that have been created and the cost to the Exchequer. [36623/14]

I am informed by the Revenue Commissioners that the available information regarding the Employment and Investment Incentive (EII) is as set out in the following table for the years 2012 and 2013 (the latest years available).

Year

Amount Invested - €m

Companies Benefitting

Tax Cost - €m

2012

13.4

78

4

2013

41.5

186

12.4

Data in relation to the number of jobs supported should become available at a later stage.  Under the terms of the scheme, relief in respect of 30% of the amount invested in a qualifying company is granted to the investor in the year of investment while the balance is only due where it has been proven that employment levels have increased at the company at the end of the holding period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. Claims for the balance of the relief will be due from 2015.

Seed Capital Scheme

Peadar Tóibín

Question:

183. Deputy Peadar Tóibín asked the Minister for Finance to state the level of investment that has been generated through the seed capital scheme on an annual basis, the number of enterprises that have benefitted, the number of jobs that have been created and the cost to the Exchequer. [36624/14]

I am informed by the Revenue Commissioners that the available information regarding the Seed Capital Scheme is as set out in the table. There are no figures available in relation to the number of jobs created.

Year

Amount Invested €m

Cost to Exchequer €m

Companies

Investors

1993/94

0.5

0.2

5

8

1994/95

2.2

0.9

39

48

1995/96

2.1

0.8

39

41

1996/97

5.3

2.1

64

92

1997/98

3.9

1.4

65

85

1998/99

4.9

2.0

70

100

1999/00

2.5

1.1

40

54

2000/01

2.5

1.0

38

47

2001 (short tax year)

2.8

1.2

34

47

2002

3.4

1.4

44

72

2003

5.5

2.3

60

61

2004

7.7

2.6

74

105

2005

3.4

1.3

42

64

2006

3.1

1.2

42

76

2007

6.1

2.3

63

70

2008

4.5

1.7

56

61

2009

8.1

2.9

78

93

2010

5.0

1.8

54

62

2011

5.7

2.0

65

80

2012

5.5

1.6

67

88

2013*

3.7

1.3

53

59

*provisional

Tax Reliefs Application

Peadar Tóibín

Question:

184. Deputy Peadar Tóibín asked the Minister for Finance the policy instruments that have developed in order to create jobs by way of relief in capital gains tax on an annual basis; the level of investment that will be generated; the number of enterprises that will benefit; the number of jobs that will be created; and the cost to the Exchequer. [36625/14]

The rate of capital gains tax (CGT) is currently 33% and has been increased four times since 2008. These increases were necessary to protect the yield from CGT in the context of the rebalancing of the public finances. An increase in the taxation of capital is preferable from the point of view of its impact on the economy as compared to an increase in employment taxes such as income tax. In these various circumstances, any reliefs introduced over recent years have had to be targeted and time-bound.

A CGT relief was introduced in Budget and Finance Act 2012 to incentivise the purchase of property between 7 December 2011 and the end of 2013 with the intention of stimulating activity in the property market. The incentive was subsequently extended to property purchased to the end of 2014. I stated recently that this relief will not be extended further as it has served its purpose.

The incentive applies to industrial, farmland, commercial and residential (buy-to-let) property (land and buildings) purchased to the end of this year. If the property is held for more than 7 years, the capital gains attributable to those 7 years will be exempt from CGT on a proportionate basis relative to the period of ownership. Property sold within the 7 year period subsequent to purchase will not qualify for relief.

Relief for farm restructuring was introduced in Finance Act 2013 on disposals of farm land for the purpose of farm restructuring or consolidation. The relief applies to a sale, purchase or exchange of agricultural land in the period from 1 January 2013 to 31 December 2015 where Teagasc has certified that a sale and purchase or an exchange of agricultural land was made for farm restructuring purposes.

Section 45 of Finance (No 2) Act of 2013 provides for a CGT relief for entrepreneurs who reinvest the proceeds from the disposal of assets made on or after 1 January 2010 in certain chargeable business assets. Commencement of the legislative provisions is subject to EU state-aid approval. Discussions with the EU Commission about State Aid clearance are ongoing. I hope that these will result in a positive outcome in the near future. Notwithstanding that the legislative provisions have yet to be commenced, the CGT relief will only apply, among other conditions, where new chargeable business assets acquired after 1 January 2014  and up to end- December 2018 are disposed of having been held for a minimum period of 3 years after acquisition in that period.

I am not in a position to say what the level of investment generated or jobs created by these reliefs will be as, among other reasons, individuals or companies who avail of them are not required to provide that information to my Department or to the Revenue Commissioners. As regards the numbers who will benefit and the cost, the reliefs will be claimed through the tax system under self-assessment. The various reliefs which I have outlined are not long introduced. Moreover, in the case of the property incentive relief, individuals must hold on to any property acquired for a minimum of 7 years in order to claim the relief while the CGT entrepreneur relief has yet to be commenced and qualifying assets under that relief must be held for a minimum of 3 years.

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