Richard Boyd Barrett
Question:56. Deputy Richard Boyd Barrett asked the Minister for Finance the cost of the tax break for private medical insurance; and if he will make a statement on the matter. [40934/12]
View answerTax Reliefs Availability
Questions (56, 57)
Richard Boyd Barrett
Question:57. Deputy Richard Boyd Barrett asked the Minister for Finance the cost of the tax break for private medical insurance according to band A, B and C in VHI and equivalent bands in all private medical insurance companies in the state; and if he will make a statement on the matter. [40935/12]
View answerWritten answers
I propose to take Questions Nos. 56 and 57 together.
I am informed by the Revenue Commissioners, who are responsible for the administration of tax relief at source for private medical insurance, that there are two types of private health insurers operating in the State, namely ‘Open Membership Insurers’ and ‘Restricted Membership Insurers’. Open membership insurers can provide insurance to all individuals on request while restricted membership insurers only provide insurance to members of specific organisations. Of the 13 private health insurers operating in Ireland, five are open membership and eight are restricted membership.
The cost of the tax relief to 31 August this year was €601 million, comprising €305 million in medical insurance relief and €296 million in age related tax credits. The age related credit is only available to clients of open membership insurers.
The age related credit is part of the current interim scheme of risk equalization in the health insurance market. The credit is funded by a Stamp Duty, the health insurance levy. The scheme is intended to be Exchequer neutral. The age related credit is due to be phased out at the end of 2012, to be replaced by credits under a permanent risk equalization scheme, which will also be funded by the health insurance levy.
Revenue does not require a breakdown of costs by band for its administration of the scheme and therefore is not in a position to provide figures broken down according to the various policy bands .
Tax Yield
Questions (58)
Billy Timmins
Question:58. Deputy Billy Timmins asked the Minister for Finance the addition in tax that would be collected by an increase of 2% on the top rate of tax and the addition of tax that would be collected by an increase of 2% on the bottom rate of tax; and if he will make a statement on the matter. [40948/12]
View answerWritten answers
I am informed by the Revenue Commissioners that the full year yield to the Exchequer, estimated by reference to 2013 incomes, of increasing the standard rate and higher rates of income tax by 2 % would be approximately €923 million and €385 million respectively. The figures are estimated from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. They are, therefore, provisional and likely to be revised.
Tax Yield
Questions (59)
Billy Timmins
Question:59. Deputy Billy Timmins asked the Minister for Finance the estimated tax take that would be on a 1% tax rate on all welfare benefits including child benefit; and if he will make a statement on the matter. [40949/12]
View answerWritten answers
I assume the Deputy has in mind the application of a 1 per cent levy to all welfare benefits including child benefit. On the basis that the estimated provision for Social Welfare Benefits in 2012 is approximately €19.9 billion, which includes certain non-departmental operational costs but excludes administration and other administration expenses, the full year yield from the imposition of a 1% levy would be €199 million. This assumes that no new tax threshold, exemption, allowance or personal reliefs would be introduced to offset some of the tax.
The Deputy will no doubt be aware that many social welfare payments are already liable to income tax.
Financial Services Sector
Questions (60)
Michael McGrath
Question:60. Deputy Michael McGrath asked the Minister for Finance if he will provide details for each of the years 2008, 2009, 2010, 2011 and to date in 2012, of the amount of credit extended by licensed moneylenders to consumers; the number of licensed moneylenders; the rate of levy applied by the Central Bank of Ireland and the total amount collected; the number of licensed moneylenders who have had their licence revoked by the Central Bank following an investigation; and if he will provide any other information or statistics that would give a complete picture of the licensed moneylending activity in Ireland. [40952/12]
View answerWritten answers
I have been advised by the Central Bank that it does not publish a figure for the total value of credit extended, in any given year, by licensed moneylenders. The following table sets out the other information requested by the Deputy for each of the years mentioned.
|
Year |
Number of licensed moneylenders |
Amount levied by the Central Bank |
Amount of levy collected |
|
2007 |
48 |
€187,000 |
€187,000 |
|
2008 |
40 |
€162,000 |
€151,000 |
|
2009 |
52 |
€244,000 |
€239,000 |
|
2010 |
52 |
€298,000 |
€255,000 |
|
2011 |
46 |
€352,000 |
€342,000 |
|
2012 |
48 |
€300,000 |
Not yet available |
The Central Bank has also advised me that this is a relatively small sector involving a small number of new applications, refusals of licences and withdrawals each year. The Bank has further advised that it does not divulge information regarding the number of moneylenders who have had their licences revoked as to do so could affect the sensitive nature of the industry/regulatory landscape.
Pension Provisions
Questions (61)
Olivia Mitchell
Question:61. Deputy Olivia Mitchell asked the Minister for Finance further to Parliamentary Question No. 81 of 11 January 2012, if the group that was established to examine charges in the pension industry has yet reported to him; his views on whether it may be possible to use this information to advance the issue of the industry adsorbing the impact of the pension fund levy; and if he will make a statement on the matter. [41014/12]
View answerWritten answers
In my response to previous parliamentary questions on this issue, I have advised that a group has been established to examine charges in the pensions industry. The group is chaired by the Department of Social Protection with representatives of the Central Bank and the Pensions Board. This study will provide an initial benchmark on the level of charges for different forms of funded supplementary pension arrangements and will provide information in relation to the disclosure of charges. These data have not been available to date so the study will provide valuable information to inform policy. I understand that the report of this group is currently being finalised and will then be presented for consideration to my colleague, Ms Joan Burton TD, the Minister for Social Protection before being submitted to Government and published. Appropriate decisions will be made on the report’s contents and recommendations, and among other things, on the scope for productive interaction with the pensions industry in relation to offsetting the impact of the pension fund levy through reductions in fees or charges.
State Banking Sector Regulation
Questions (62)
Michael McGrath
Question:62. Deputy Michael McGrath asked the Minister for Finance the efforts made by his Department and the Irish Bank Resolution Corporation to seek repayment of the €1 million bonus previously paid to the former head of the Irish Nationwide Building Society Mr. Michael Fingleton and also the return of a watch which was given by the building society to him by way of a gift on his retirement, including the dates of any letters issued to Mr. Fingleton dealing with these matters and confirmation of whether or not such correspondence was responded to. [41021/12]
View answerWritten answers
I have been advised by IBRC that following the transfer of the former Irish Nationwide Building Society (‘INBS’) to the Bank in July 2011, the Bank wrote to Michael Fingleton on 2 August 2011 seeking repayment of the €1m bonus paid to him by the former INBS and the return of the watch that he was given upon his retirement. The Bank received a response from Mr Fingleton dated 10 September 2011. Subsequent to this the Bank issued a further letter to Mr Fingleton dated 27 September 2011. The Bank has not yet received a response to this letter. Subsequent to writing to Mr Fingleton, the Bank sought and obtained Senior Counsel's advice in connection not only with these matters but with the management of the former INBS by Mr Fingleton and a number of former directors and officers of the former INBS. Having done so, the Bank sought and obtained Ministerial consent to the issue of protective proceedings against Mr Fingleton and certain former officers and issued those proceedings on 29 March 2012. As the proceedings have been issued and the Bank continues to actively investigate all legacy matters, including those related to the proceedings, it would be inappropriate for me to comment further on the status of the proceedings at this time.