Michael Ring
Question:129 Mr. Ring asked the Minister for Finance if he will reconsider and introduce a tax incentive to encourage people to invest in wind farms; and if he will make a statement on the matter. [17370/00]
Written Answers. - Tax Incentives.
In response to a question from the Deputy on 6 April 2000, I indicated that while there is a specific tax relief for corporate investment in certain renewable projects, individuals can also invest in such projects through limited partnerships. The details are as follows:
Section 62 of the Finance Act 1998 provides for tax relief for corporate investment in certain renewable energy projects. To qualify for the relief the energy project must be in the solar, wind, hydro or biomass technology categories, and be approved by the Minister for Public Enterprise. The relief takes the form of a deduction for tax purposes from a company's profits for an investment in new ordinary shares in a company setting up a renewable energy project. The relief is capped at 50% of all capital expenditure, excluding land, net of grants, or £7 million for a single project. Investment by a company or group is capped at £10 million per annum, and unless the shares are held for at least five years by the company the relief will be withdrawn.
Following clearance of the scheme by the European Commission, I made an order providing that the relief would come into operation from 18 March 1999 for a three year period.
While the section 62 relief was designed for a corporate structure, as I said already individuals can also invest through a limited partnership structure. However, in regard to such limited partnerships, I would like to remind the Deputy of a provision in this year's Finance Act which has an impact on the availability of the relief to individuals involved in a partnership structure.
As a result of an abuse of the right to offset losses, interest and capital allowances of limited partnerships against non-partnership income, I brought forward measures to curtail the use of such partnership losses. Section 70 of the Finance Act, 2000, restricts the application of this set-off, as it applies to non-active partners in partnerships, so that in future, relief for losses, etc., will only be available for set off against income arising to the partnership and will be subject to an upper limit equal to the capital contribution to the partnership.
In the case of investment in renewal energy, I included transitional arrangements, in section 70, which allow for expenditure incurred under an obligation entered into before 1 March 2001 to be excluded from this restriction. These arrangements are very reasonable in the circumstances and I have no plans to make further changes in this area at this stage.
Alan Shatter
Question:130 Mr. Shatter asked the Minister for Finance the pension payable to a person who ceases to be a Member of Dáil Eireann, never having had a ministerial appointment, after (i) ten years service, (ii) 20 years service and (iii) 30 years service; and the widow's or widower's pension payable. [17372/00]
Superannuation benefits for Members of Dáil Éireann are paid in accordance with the provisions of the Houses of the Oireachtas (Members) pension scheme. The scheme was amended by regulations made by the Minister for Finance on 25 November 1992. The provisions which applied up to that time are referred to as the "old scheme" and the provisions as amended are referred to as the "new scheme".
In broad terms, any serving Deputy who had eight or more years' pensionable service on 6 June 1997 could opt to have all his or her service reckoned for superannuation purposes under the terms of the new scheme or to have his or her service up to that date reckoned under the old scheme. All service subsequent to 6 June 1997 is reckoned under the new scheme. All service prior to 6 June 1997 of any member with less than eight years' service on that date is reckoned under the terms of the new scheme.
A Deputy with ten years service in the Dáil to whom the new scheme applies is entitled to an annual pension of £9,796 and a retirement gratuity of £29,388, payable from age 50 or from age 45 subject to actuarial reduction, on ceasing to be a Member of the Oireachtas. The annual pension payable in respect of ten years' service to a surviving spouse who has not remarried is half the Member's pension, £4,898.
A Deputy with 20 or more years' service to whom the new scheme applies is entitled to the maximum award under the scheme of an annual pension of £19,592 and a retirement gratuity of £58,776, payable from age 50 or from age 45 subject to actuarial reduction, on ceasing to be a Member of the Oireachtas. The annual pension payable to a surviving spouse who has not remarried is half the Member's pension, £9,796, the maximum allowable.
To the extent that a Deputy has opted to have service up to 6 June 1997 reckoned under the provisions of the old scheme, such service accrues pension and lump sum entitlement more slowly than under the new scheme – 262/3 years rather than 20 years – but the benefits are payable on ceasing to be a Member of the Oireachtas, without age restriction.