Colm M. Hilliard
Question:119 Mr. Hilliard asked the Minister for Finance the non-tax revenue under the heading of miscellaneous for £25.269 million in 1995 and £17.074 million in 1996. [3843/96]
Written Answers. - Non-Tax Revenue.
The following table gives a breakdown of the items included in the 1996 White Paper on Estimates of Receipts and Expenditure under the "Miscellaneous" heading:
|
1995 outturn |
1996 budget |
|
|
£m |
£m |
|
|
Passport Fees¹ |
11.5 |
10.8 |
|
Marathon Royalties² |
7.8 |
6.1 |
|
Other³ |
6.0 |
0.2 |
|
Total Misc. |
25.3 |
17.1 |
¹This item comprises revenues from issuing of passports to Irish citizens, visa fees in respect of non-nationals visiting Ireland and fees from foreign birth registrations (i.e. applications for citizenship under the descent rules).
²This item refers to revenues in connection with the Kinsale gas field. Under an agreement concluded in 1959, royalties are payable by Marathon Petroleum Ireland Ltd. (the company that operates the field) at the rate of 12½ per cent of the fair market value of such oil, gas or other petroleum substances as are produced. A deduction for the cost of making it saleable and transporting it to the sale point, if any, is allowable in computing royalties.
³The 1995 outturn on this item includes a £4.5m EU refund of VAT. Payments to the EU are based on forecasts of GNP and the VAT base. These are reviewed annually at mid-year and may result in refunds or extra charges in the event of emerging outturns differing from forecast figures. The balance of the 1995 receipts consist of miscellaneous once-off receipts such as c.£900,000 received from the liquidator of a company in respect of interest on a loan repaid on behalf of the company by the Exchequer under the State Guarantees Act, 1954, some £300,000 received from the surrender of balances of the Western Development Fund, in connection with the transfer of responsibility for the administration of the Fund from the Department of Finance to the Department of Enterprise and Employment and about £100,000 received in settlement of legal proceedings which the Office of Public Works had instituted against a building contracting firm in relation to work carried out on a State building.
Colm M. Hilliard
Question:120 Mr. Hilliard asked the Minister for Finance the reason it is estimated that the non-tax revenue from the Central Bank will increase from £109.5 million in 1995 to £172.5 million in 1996; and if he will explain the term surplus income. [3844/96]
The Central Bank earns income from the investment of its assets. Against this income, it pays out interest to depositors (mainly government and credit institutions) and operational costs such as wages and salaries. The balance represents the surplus income, or profits, of the Bank. Under the Central Bank Surplus Income Regulations, 1943, the Bank may transfer up to 20 per cent of its trading profits to reserves and may also make provisions for depreciation and superannuation reserves. The balance is paid to the Exchequer and constitutes the item "Central Bank surplus income" to which the Deputy refers.
The Exchequer receipts of Central Bank Surplus income in a given year are equal to the previous year's surplus income calculated in accordance with the aforementioned Regulations. Thus the 1995 receipt is calculated by reference to the 1994 accounts, while the forecast increase in 1996 is based on the projected 1995 outturn. Although the audited accounts for 1995 were not available, it was estimated for the purposes of the budget that the transfer to the Exchequer on foot of the 1995 surplus income would amount to £172.5 million. This increase can be explained by 3 main factors, viz.
— the underlying profitability of the Bank has increased;
— the Bank recorded significant gains on its trading in securities during 1995. While such gains, or losses where appropriate, had previously not been treated as income, a new accounting policy was approved by the Board of the Bank in November, 1993. The Board decision provided that, with effect from 1 January, 1995, realised gains, or losses, on securities are to be transferred to the profit and loss account;
— the Board of the Bank has decided that it will transfer only 10 per cent of the surplus income arising on the 1995 accounts to its own reserves, whereas it transferred a higher proportion — 15 per cent — in the previous year.
The exact amount to be transferred to the Exchequer will be finally determined only when the Central Bank's audited accounts become available later in the year.
Colm M. Hilliard
Question:121 Mr. Hilliard asked the Minister for Finance the reason the non-tax revenue for interest and dividends on Exchequer advances reduced from £76.48 million in 1995 to £51.244 million in the 1996 Budget. [3845/96]
The following table gives a breakdown of the items included under the heading "Interest and Dividends on Exchequer Advances" in the 1996 White Paper on Estimates of Receipts and Expenditure:
|
1995 outturn |
1996 budget |
year-on-year change |
|
|
£m |
£m |
£m |
|
|
Bord Gáis Éireann dividend¹ |
8.0 |
— |
(8.0) |
|
Telecom Éireann dividend² |
— |
10.0 |
10.0 |
|
Local Loans Fund receipts³ |
57.9 |
30.6 |
(27.3) |
|
Other Interest and Dividends |
10.6 |
10.6 |
— |
|
Total |
76.5 |
51.2 |
(25.3) |
¹Because of the high level of debt of Bord Gáis Éireann, due mainly to borrowing requirements for the Ireland/UK Natural Gas Interconnector as well as the volatility of their profit projections, an agreement was reached with the Company allowing for a nil dividend in 1996, with annual reviews thereafter taking account of ongoing borrowing levels.
²As part of an overall policy arrangement with Telecom Éireann and in recognition of the need to strengthen the Company's balance sheet in the light of rapid change in the telecommunications sector, it was agreed that Telecom Éireann's dividend payments to the Exchequer would be reduced. In this regard, they are to pay £10 million to the Exchequer in respect of their financial year ending 31 March, 1995. Due to timing factors, this payment is to be received in 1996 resulting in a nil payment in 1995. It is anticipated that dividend flows will resume once the Company's debt position has been brought into line with international norms for the sector.
³Recent years have seen high levels of early redemptions on the outstanding Local Loans Fund portfolio. This factor, in addition to the impact of last years securitisation of £140 million worth of the portfolio and a planned securitisation worth a further £50 million in 1996, has resulted in a significant reduction in the level of outstanding loans, with a consequential reduction in the level of interest likely to be received in 1996.