Ruairí Quinn
Question:64 Mr. Quinn asked the Minister for Finance the progress made to date in regard to consideration of proposals for gain-sharing within the public service; and if he will make a statement on the matter. [9746/01]
Written Answers. - Tax Code.
Gain-sharing in the public service needs to addressed in the context of the work of the Public Service Benchmarking Body. Paragraph 22 of section 1.4 of Framework 1 of the PPF states that "The parties to the Programme recognise the necessity to examine issues such as new forms of work organisation embracing innovative work practices, multi-grade and cross stream teams, and flexibility in grading, including broad-banding, complemented by imaginative reward and recognition systems including an examination of gain-sharing. It is also recognised that these issues are likely to arise in any event from the Benchmarking exercise agreed under this Programme." In any event work is ongoing on the development of a performance management system in the public service and without that in place it would be difficult to develop an acceptable gain-sharing scheme for the public service.
Ivor Callely
Question:65 Mr. Callely asked the Minister for Finance if his attention has been drawn to the difficulties which Irish printing companies are experiencing due to variance on the VAT and tax rates in EU member states; and if he will make a statement on the matter. [7873/01]
In Ireland all printed books and booklets are zero rated. In the 1998 Finance Act, the rate of VAT on a wide range of printed matter such as newspapers, periodicals, brochures, leaflets etc. were reduced to 12.5% with effect from 1 May 1998. The standard rate of 20% continues to apply to stationery, cheque books, diaries, organisers, yearbooks, planners and similar publications. I am aware that the UK zero rates the supply of most printing services, however it is not possible for us to introduce a new zero rates due to the requirements of EU VAT law which allows us to retain existing zero rates but not introduce new rates. However, Ireland's VAT rate on printing compares favourably with the rates in place in other EU member states. In any event where UK companies supply taxable material into the Irish market they are required to impose the same rates of VAT as comparable Irish firms. Likewise, if Irish companies supply products and services into the UK they are taxable at UK rates.
Because of their size many Irish printing companies now enjoy the benefits of the 12.5% rate of corporation tax which I brought forward for small and medium enterprises in budget 2000. In this year's budget I increased the thresholds so that companies with a total trading income not exceeding £200,000 can since 1 January 2001 benefit from the 12% rate of corporation tax. Marginal relief applies where the total of such trading income is between £200,000 and £250,000.