Written Answers Nos. 96-114
96. Deputy Joe McHugh asked the Taoiseach if he will provide an update on the commitment to progressing the co-funded A5 road project; if he will further provide an update on the engagement that he has had with the Northern Ireland Executive in respect of this co-funded project; and if he will make a statement on the matter. [41269/12]
View answerTransport is one of the areas of cooperation under the North South Ministerial Council (NSMC) process. Regular meetings of the Transport Sectoral Council are held, where transport issues, including investment, are discussed. The next Transport Sectoral is due to take place on 5 October 2012.
In relation to the A5 cross-border roads project, as the Deputy will be aware in 2006 the previous Fianna Fáil led Government gave a commitment to co-fund the construction of the A5. However, they made no provision to meet the costs of the A5 post 2012 in either the Four Year Plan or the Infrastructure Investment Priorities Plan 2010 to 2016. Given that £400 million sterling was due to fall between 2013 and 2016 and given the current state of the country’s Exchequer, it was not feasible to provide this level of funding in the coming years.
Therefore at the NSMC Plenary meeting on 8th November 2011, Ministers noted that the provision of further funding by the Irish Government for the A5 road was being deferred but that the Irish Government will provide £25m per annum in 2015 and 2016 towards the project. At the subsequent June 2012 NSMC Plenary meeting, it was noted that the N.I. Executive had announced an investment package of major roads including two sections of the A5 project. In addition it was noted that the Irish Government remains committed to the completion of the co-funded A5 project which is of strategic importance to the North West Region and the island as a whole, but that the Government is not in a position to making funding commitments for the period past 2016 in advance of its consideration of the next capital review framework. The NSMC Plenary did approve a funding implementation plan for the A5 project to the end of 2016 which incorporated the £50m committed by the Irish Government.
97. Deputy Brendan Smith asked the Taoiseach the statutory powers that have been delegated to Ministers of State in his Department; and the date on which the statutory powers were delegated. [41270/12]
View answerMy statutory functions in relation to the Central Statistics Office under the Statistics Act 1993, the Civil Service Regulation Acts 1956 to 2005 and the Public Service Management (Recruitment and Appointments) Act 2004 were delegated to the Government Chief Whip, Deputy Paul Kehoe, on 22 March 2011.
98. Deputy Michael Creed asked the Taoiseach if he will publish details of all allowances paid to staff in his Department; the business case made by his Department in respect of these allowances to the Department of Public Expenditure and Reform; the cost of each individual allowance; and if he will make a statement on the matter. [41420/12]
View answerDetails of the allowances paid to staff in my Department are set out in the table.
|
Name/Description of Allowance |
Amount of allowance |
|
Press Officers "on-call" allowance |
5 hours overtime at double-time every week |
|
Private Secretary to the Taoiseach |
€24,427 per annum |
|
Private Secretary to Minister of State (including Private Secretary to Leader of the Seanad) |
€19,653 per annum |
|
Assistant Private Secretary to the Taoiseach |
€19,653 per annum |
|
Shift allowance in Government Communications Unit |
1/6th gross salary |
|
Minister of State Meeting Allowance |
€17,205 per annum |
|
Private Secretary to Secretary General |
€10,370 per annum |
|
Personal Assistant to Taoiseach's Private Office |
€7,125 per annum |
|
Taoiseach's Diary Secretary |
€7,125 per annum |
|
Machine Allowance |
€847.60 per annum |
|
Paper Keeper Allowance |
€3,176 per annum |
|
Clothing Allowance (this is vouched and payable to 6/7 staff in Protocol / Government Press Office only) |
€444 per annum |
|
Franking Allowance |
€1,783 per annum |
|
Child Allowance (payable to certain staff recruited before 1979 only) |
€113 per child, per annum |
|
Footwear Allowance (payable to Service Officers for outdoor duties only) |
€65 per annum |
|
Tea/Meal Allowance (payable to Service Officers who work late on Dáil sitting days only) |
€4.10 on Dáil sitting days |
Former Private Secretaries receive a portion of the Private Secretary allowance when they vacate their positions. The three former Private Secretaries in my Department receive €12,214, €9,287 and €5,185 per annum respectively. The Review of Public Service Allowances published last month included the retention element of the Private Secretary Allowances, the Personal Assistant to the Taoiseach's Private Office Allowance and the Clothing Allowance in the classes of allowances to be abolished for new beneficiaries.
My Department also pays a higher duties allowance to one member of staff and a Deputy Head of Division Allowance to a member of staff on secondment from the Department of Foreign Affairs and Trade on the instruction of that Department.
The business cases made by my Department to the Department of Public Expenditure and Reform are available on that Department's website, www.per.gov.ie.
99. Deputy Thomas P. Broughan asked the Taoiseach if the statistics for estimating overseas visitors to Ireland should not include visitors who are emigrants visiting family and friends; and if he will make a statement on the matter. [40809/12]
View answerTourism is defined in Regulation (EC) 692/2011 of the European Parliament and of the Council concerning European statistics on tourism as 'the activity of visitors taking a trip to a main destination outside their usual environment, for less than a year, for any purpose, including business, leisure or other personal purpose, other than to be employed by a resident entity in the place visited'. This definition is consistent with the definition of tourism recommended by the United Nations World Tourism Organisation (International Recommendations for Tourism Statistics 2008).
The CSO compile tourism statistics in accordance with EU Regulation 692/2011 and the UN 2008 IRTS. The defining characteristics of a tourist are residency, duration of visit and that the purpose is other than employment.
102. Deputy Luke 'Ming' Flanagan asked the Taoiseach if he will list all the current positions, where the appointment was made by his Department held by retired senior civil servants; and if he will make a statement on the matter. [42672/12]
View answerJohn Malone, former Secretary General of the Department of Agriculture, is the Chairman of my Department's Internal Audit Committee. He does not receive any salary or expenses for this role. He is the only retired senior civil servant appointed to any current position by my Department.
103. Deputy Michael Creed asked the Tánaiste and Minister for Foreign Affairs and Trade if he will publish details of all allowances paid to staff in his Department; the business case made by his Department in respect of these allowances to the Department of Public Expenditure and Reform; the cost of each individual allowance; and if he will make a statement on the matter. [41414/12]
View answerThe information requested by the Deputy is set out in the following tables. Details of the related business cases submitted by my Department to the Department of Public Expenditure and Reform have been made publicly available on that Department’s website www.per.gov.ie.
Allowances common to more than one Department
|
Allowance
|
Number of recipients (in 2011) |
Estimated total cost per annum |
Taxable Y/N |
|
Child Allowance €2.16 per week per child |
36 |
€6,441 |
Y |
|
Delegates Allowance |
119 |
€141,092 |
Y |
|
Driver (Van) Allowance €52.21 per week PPC rate or €49.58 per week modified rate |
4 |
€10,449 |
Y |
|
Franking Machine Allowance €34.29 per week PPC rate or €32.60 per week modified rate |
6 |
€10,383 |
Y |
|
Key Holder Allowance €35.67 per week PPC rate or €33.91 per week modified rate |
10 |
€14,083 |
Y |
|
Paperkeeper Allowance €54.58 per week PPC rate or €51.84 per week modified rate |
3 |
€8,372 |
Y |
|
Personal to Holder Allowance Payable to former Revenue staff who transferred to the Department of Foreign Affairs and Trade under decentralisation |
11 |
€25,793 |
Y |
|
Private Secretary to Minister Allowance €20,685 per annum PPC rate or €19,653 per annum modified rate |
2.5 |
€51,712 |
Y |
|
Private Secretary to Secretary General Allowance €10,951 per annum PPC rate or €10,405 per annum modified rate |
1 |
€10,951 |
Y |
|
Services Officer Supervisory Allowance (Deputy Head Service Officer) €64.26 per week PPC rate or €61.07 per week modified rate |
4 |
€13,079 |
Y |
|
Shift Allowance (Communications Centre) 1/6th of salary |
3 |
€20,789 |
Y |
|
Shift Allowance (Passport Office Balbriggan Production Facility) 1/6th of salary |
10 |
€60,000 |
Y |
|
Shoe Allowance €60 per annum per Services Officer |
28 |
€1,625 |
N |
|
Switchboard Allowance Paid after 30 hours worked on switchboard €36.09 PPC rate or €34.32 modified rate |
13 |
€7,724 |
Y |
|
Unsocial Hours Allowance €42.18 per week PPC rate or €40.08 per week modified rate |
3 |
€6,471 |
Y |
Personal Pension Contribution (PPC) scales apply where officers were employed since 6 April 1995, pay the class A rate of PRSI and make a personal pension contribution.
Allowances specific to the Department of Foreign Affairs and Trade
|
Allowance
|
Number of recipients |
Estimated total cost per annum |
Taxable Y/N |
|
Consular/Diplomatic Duty Officer Allowance |
1 per week |
€36,826 |
Y |
|
Passport Office Dublin Duty Officer Allowance |
2 per week |
€88,104 |
Y |
|
Passport Office Cork Duty Officer Allowance |
1 per week |
€33,470 |
Y |
|
ICT Unit On Call Allowance |
1 per week |
€40,500 |
Y |
|
Deputy Head of Division Allowance €4,750 per annum |
6 |
€28,500 |
Y |
|
Permanent Representation Brussels On Call Allowance |
1 per week |
€22,000 |
Y |
|
Programme for Competitiveness and Work Allowance 1% of salary |
12 |
€7,651 |
Y |
|
Gratuity for Public Holiday Allowance €100 per Public Holiday or €200 for Christmas Day and St Stephen's Day |
3 each Public Holiday |
€4,200 |
Y |
|
Press Officer Allowance |
1 |
€2,413 |
Y |
|
Chief of Protocol Clothing Allowance |
1 |
Up to €2,000 maximum |
N |
|
Meal Allowance €10 per function per Cleaner |
14 |
€600 |
N |
Allowances paid to officers serving at missions abroad
Foreign Service Allowances are designed to offset the additional costs that arise for officers when they are temporarily posted abroad. These arrangements are common to Foreign Services throughout the world. The system operated by the Department is in line with that used by many other countries and has three main components.
Cost of Living Allowance (COLA) is designed to defray costs associated with living in cities where the cost of living is higher than in Dublin, based on data provided by an independent external consultancy. Because the COLA is linked to salary and notional net take-home pay it has been reduced in line with salary reductions in the civil service and with increases in taxation in recent years.
Local Post Allowance (LPA) provides assistance towards the additional indirect costs arising from the representative role of officers. This allowance, which varies according to marital status and grade, is payable at all locations abroad. Officers serving in designated “hardship” posts may also be entitled to a hardship allowance as part of their LPA. Where payable, this hardship element takes account of factors such as personal security and political tension, health, environmental factors, climate and isolation. Children’s Foreign Allowance (CFA) compensates officers for additional costs incurred with regard to their children aged under 18, or under 21 and in full time education.
|
Allowance |
Number of recipients (excluding staff seconded from other Departments) |
Estimated total cost per annum |
Taxable Y/N
|
|
Cost of Living Allowance |
325 approx at any one time |
€2,394,000 |
N |
|
Local Post Allowance |
as above |
€5,557,000 |
N |
|
Child Foreign Allowance |
Approx 128 officers in respect of 224 children (January 2012) |
€709,000 |
N |
|
Foreign Service Allowance Other |
Approx 16 officers at any one time |
€156,000 |
N |
In addition, the following additional allowances may be paid to officers in particular circumstances, usually in the form of refunds for vouched expenditure or paid directly on behalf of officers:
|
Allowance |
Number of recipients (excluding staff seconded from other Departments) |
Estimated total cost per annum |
Taxable Y/N |
|
Rent Allowance |
265 approx at any one time |
€7,937,000 |
N |
|
Furniture Allowance |
Approx 50 in 2011 |
€97,773 |
N |
|
School Fees Assistance (payable only where local state education is not accessible or of a suitable standard, in order to provide for the child’s Constitutional right to education) |
Approx 46 officers in respect of 76 children (January 2012) |
€1,062,000 |
N |
|
Representational Allowance |
Payable at all Missions in relation to vouched expenditure on official representative or promotional activities - allocated to individual officers at discretion of Head of Mission |
€2,033,000 |
N/A |
|
Health Insurance overseas top-up |
Approx 318 officers and 335 dependents (January 2012) |
€811,000 |
N |
|
Other Medical Expenses |
Approx 50 cases in total in 2011 |
€65,000 |
N |
|
Detention Allowance (payable for a limited period to officers while seeking accommodation on taking up duty abroad) |
Approx 60 officers and families where relevant (2011) |
€140,109 |
N |
|
Disturbance Allowance (to assist officers with the necessary costs associated with return from posting) |
Approx 57 officers and families where relevant (2011) |
€280,237 |
N |
|
Temporary Accommodation costs (payable while officers seek permanent accommodation at posting location abroad) |
Approx 60 cases (2011) |
€284,030 |
N |
104. Deputy Joanna Tuffy asked the Tánaiste and Minister for Foreign Affairs and Trade if he has any plans to make an application to have Ireland included in a scheme which permits the enrolment of 15 international students each year to the United States Air Force Academy (details supplied); and if he will make a statement on the matter. [41463/12]
View answerI have no such plans.
105. Deputy Simon Harris asked the Tánaiste and Minister for Foreign Affairs and Trade his objectives and priorities during Ireland's Presidency of the Council of Europe; and if he will make a statement on the matter. [41552/12]
View answerThe Irish Presidency will come at a critical time for Ireland in terms of our national recovery - we will prioritise jobs and growth as a key objective in the six months ahead. As the Presidency approaches, the issues that will be high on the EU agenda are becoming clearer, and across Government, Ministers are working to identify their key priorities. These will be outlined in detail in the Irish Presidency programme that will be published in December 2012. As Presidency, the Irish Government is focusing on measures to boost Europe's global competitiveness, stimulate sustainable economic growth and, above all, to promote jobs. This will be delivered through high-level political engagement and dedicated work to reinforce the EU legislative agenda.
Our Presidency will be about delivery and implementation. The Government will seek agreement on those aspects of the Multiannual Financial Framework that remain outstanding following the Cypriot Presidency and will take forward the necessary implementing legislation to cover the 2014-2020 period. The EU should be fit for purpose and properly resourced to that end. We will work to ensure that.
It will be critically important for Ireland and for the future development of the EU that reform of the Common Agriculture Policy and of the Common Fisheries Policy is advanced. Progress should also be made on initiatives such as Horizon 2020 (the EU's future framework programme for research and innovation) which will be crucial for the EU's economic development. This week the Government will meet the College of Commissioners in Brussels to discuss Ireland's Presidency programme and how priority issues across a range of sectors will be advanced.
106. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade noting the continuing threats by the US President to support an Israeli pre-emptive military strike against Iranian nuclear facilities, if he will acknowledge that these threats are breaches of the UN Charter and International Law. [41836/12]
View answerIn his address to the UN General Assembly on 25 September last, President Obama said: “America wants to resolve this issue through diplomacy, and we believe that there is still time and space to do so. But that time is not unlimited.” This is consistent with the serious, patient and protracted efforts of the United States Government over many years, working closely with the European Union and the Governments of Russia and China, to engage Iran in a diplomatic dialogue to resolve the serious concerns surrounding Iran’s nuclear programme - concerns which are shared by Ireland, by the EU, by the wider international community, and by the International Atomic Energy Agency. All recent reporting and analysis of the issue has acknowledged continuing US efforts to discourage any immediate recourse to military action against Iranian sites.
The Government, in concert with our European partners, fully support a diplomatic solution to this issue. Furthermore, the Government has equally and consistently been clear in advocating with EU and international partners that it is only through the path of diplomatic negotiations that the serious issues arising from Iran’s nuclear programme can be resolved. It is regrettable that thus far Iran has not been willing to engage in negotiations on the issue with the necessary seriousness and commitment. We hope very much that this will change.
107. Deputy Anne Ferris asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the implementation of the responsibility to protect UN resolution for the deteriorating situation in Syria; and if he will make a statement on the matter. [41837/12]
View answerIreland is a strong supporter of the concept of “responsibility to protect”, which continues to be developed and elucidated in discussions amongst UN member States. Under this concept, each individual State has the primary responsibility for the protection of its citizens. It must ensure their safety and security and work to prevent atrocities such as genocide, ethnic cleansing, crimes against humanity and war crimes – atrocities which have caused the concept of “responsibility to protect” to be developed in the first instance. Any objective appraisal of what has occurred in Syria over the past eighteen months will conclude that the Syrian Government has failed utterly in this basic responsibility. I pointed out in my address to the UN General Assembly on 28 September that the Assad Government is guilty of wholesale slaughter of its own people. I also made clear that, while the violence is indiscriminate and on an appalling scale, it is not confined to one side.
If the concept of “responsibility to protect” is to have any meaning or relevance for the Syrian people, it is incumbent on the UN Security Council, as the body charged with the maintenance of international peace and security under the UN Charter, to act with one voice in seeking to promote the earliest possible ceasefire and initiation of a political process leading to transition. That is why I also made clear in my address to the General Assembly that what is now needed, above all else, is a strong Security Council resolution which will authorise targeted sanctions. This must include a comprehensive arms embargo, against all those who are responsible for violating the human rights of the Syrian people. That is what the Syrian people want from us, and what they have a right to expect.
There must also be full accountability for human rights abuses. To prevent further atrocities now, and to save lives now, we must make it clear that atrocities will not go unpunished. That is why Ireland supports the call by the UN High Commissioner for Human Rights, by Switzerland and others for the Security Council to refer the situation in Syria to the International Criminal Court. We will continue working to build up strong cross-regional support within the UN context for such a referral.
The Government will continue to work closely with the UN and international partners to bring about the earliest possible end to the suffering which the Syrian people have endured for too long and to ensure that there will be accountability for the many crimes and atrocities which have been perpetrated against them.
108. Deputy Luke 'Ming' Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will list all the current positions, where the appointment was made by his Department held by retired senior civil servants; and if he will make a statement on the matter. [42667/12]
View answerThe policy of my Department regarding the re-hiring of retired officials is to do so to the minimum extent possible. However, for certain once-off or short-duration projects, it is more productive and cost-effective to re-hire retired staff who already have the relevant expertise and experience than to go through a time-consuming and relatively expensive recruitment, induction and training process. Where it occurs, retired staff are usually re-hired on a pension abatement basis, which means in effect that they continue to receive their pensions and are paid correspondingly reduced salaries by the Department. A small number of temporary posts in the Department of Foreign Affairs and Trade are currently filled by retired senior civil servants as follows:
|
GRADE |
POSITION HELD |
DURATION |
|
1 Assistant Secretary |
Head of Task Force in connection with Ireland’s Chairmanship of the OSCE, 2012 |
Contract from 7 January 2011 to 31 December 2012 |
|
1 Deputy Secretary |
Tánaiste’s Special Representative in connection with Ireland’s Chairmanship of the OSCE, 2012 |
Contract for a maximum of 30 weeks spread over the twelve months of 2012 |
|
1 Assistant Secretary |
Passport Appeals Officer |
3-year contract from 20 January 2012 to deal with appeals as and when they arise (based on per diem payments) |
|
1 Assistant Secretary |
To assist in the preparation of files for the National Archives |
Contract for a maximum of 10 weeks spread over the twelve months in 2011 and 2012 |
|
1 Counsellor |
To assist in preparations for the Irish Presidency of the European Union in January – June 2013 |
From 1 May 2012 until 30 June 2013 |
The Department also occasionally avails of the services of retired civil servants to sit on promotion competition interview boards or to investigate complaints under the Positive Working Environment policy. In addition, a retired Assistant Secretary was appointed to the independent Irish Aid Expert Advisory Group in July 2010 for a term of three years, for which a fee of €2,000 is payable annually. There are no State agencies under the aegis of my Department.
109. Deputy Robert Troy asked the Minister for Finance if he will consider additional tax breaks for people with disabling illnesses who are self employed, for example people suffering with Myasthenia gravis and other disabling illness. [41959/12]
View answerIt would be difficult to justify the introduction of additional tax reliefs for the disabled that would only apply to the self employed. However, I would point out that if an individual is in receipt of certain disability payments, they may be allowed to do work or training and keep their payment or part-payment on the grounds that it is considered rehabilitative or therapeutic. People with disabilities are, in general, liable to pay tax on their incomes in the same way as everyone else. The tax system does however provide additional tax credits and exempts certain incomes from tax for persons with disabilities of a permanent nature.
Anyone who is permanently incapacitated either physically or mentally, where he or she is unable to maintain himself or herself, may be able to claim one or more of the additional tax credits available. In addition, parents/guardians and persons who care for dependent relatives may also qualify for some of the relevant tax credits, which are set out as follows:
Incapacitated Child Tax Credit - can be claimed by a parent in respect of a child who is permanently incapacitated either physically or mentally from maintaining himself or herself and had become so before reaching 21 years of age or finishing full-time education or full-time training for a trade or profession. (Leaflet No. IT18 - Incapacitated Child Tax Credit).
Note: One Parent Family Tax Credit may also be claimed by a single parent (whether widowed, separated, deserted, single or divorced) with an incapacitated child. This credit can be claimed regardless of whether you have already claimed the incapacitated child tax credit. (Leaflet No. IT9 - One-Parent Family Tax Credit).
Blind Person’s Tax Credit -is due to a person who is regarded as blind. If two people, who are regarded as blind, are married, they can each qualify for this tax credit. (Leaflet No. IT35 - Blind Persons’ Tax Credits & Reliefs).
Dependent Relative Tax Credit - a person who maintains a relative, including a relative of their spouse, who is unable, due to old age or infirmity, to maintain himself or herself, may claim this credit. This credit can also be claimed if a person maintains, at their own expense, a widowed mother/father or widowed mother-in-law/ father-in-law, regardless of the state of his/her health. (Leaflet No. IT46 - Dependent Relative Tax Credit).
Employed person taking care of an Incapacitated individual - an incapacitated person who employs someone to care for himself, herself or a relative can claim for the cost of the employment. (Leaflet No. IT47 - Employed person taking care of an Incapacitated individual).
Covenants - relief is available in respect of a properly drawn up Deed of Covenant in favour of a permanently incapacitated individual. However, parents cannot covenant to a permanently incapacitated minor child i.e. under 18 years of age and unmarried. (Leaflet No. IT7 - Covenants to Individuals).
Medical Expenses Relief - is available in respect of un-reimbursed nursing home, doctors’, hospital and other health expenses. (Leaflet No. IT6 - Health / Medical Expenses Relief).
The following sources of income and gains are exempt from Income Tax and Capital Gains Tax for people with incapacities, provided they are included in their annual return of income:
Deposit Interest Retention Tax (DIRT) - if you are permanently incapacitated or over 65 years of age you could be entitled to a refund of DIRT deducted, provided your gross income is exempt from tax or is marginally over the exemption limit. (Leaflet No. IT8 - Tax Exemption & Marginal Relief).
Leasing of Farmland: rent from farmland can be exempt if you are permanently incapacitated from carrying on the trade, provided certain conditions are met.
Payments to or in respect of Thalidomide Persons: Payments made by the Department of Health and Children or the Hilfswerk Für Behinderte Kinder Foundation are exempt from income tax. Also exempt is any income arising from the investment of these payments, for example deposit interest, rental income, dividend income, etc. With effect from 1 January 2004, any gains arising from the disposal of assets acquired with such payments or with such an investment is exempt from Capital Gains Tax.
Personal Injury Compensation Payments: Certain compensation payments received are exempt from Income Tax. Also exempt is income arising from the investment of such payments, and with effect from 1 January 2004, gains arising on the disposal of assets acquired with such payments or the investment of such payments, provided the aggregate of the gains and income exceeds 50% of the aggregate of the person’s total income and gains. The injury must have given rise to a permanent and total mental or physical incapacity which prevents the person from maintaining himself or herself. (Leaflet No. IT 13 - Personal Injury Compensation Payments).
Compensation payments made by the Hepatitis C and HIV Compensation Tribunal - are exempt from income tax. Also exempt is income arising from the investment of such payments and with effect from 1 January 2004, gains arising on the disposal of assets acquired with such payments, provided the aggregate of the gains and income exceeds 50% of the aggregate of the person’s total income and gains, if the individual is permanently and totally incapacitated from maintaining themselves as a result of the infection.
Lump Sums - can be exempt where paid by an employer because of injury or disability. Please see Information Leaflet IT21 - Lump Sum Payments on Redundancy/Retirement for further information.
110. Deputy Pearse Doherty asked the Minister for Finance if he will explain the purpose of the €100m loan from the European Investment Bank, shown in the August 2012 Exchequer statement. [41248/12]
View answerThe purpose of this loan from the European Investment Bank (EIB) is to assist in funding the Department of Education and Skills’ capital investment programme. This loan will provide funding for the planned exchequer schools building programme, which involves the construction and upgrading of primary and secondary schools across the country. The EIB loan substitutes for other sources of funding at favourable terms and conditions for the state and it will not fund additional projects.
111. Deputy Dominic Hannigan asked the Minister for Finance if Permanent TSB has ceased giving loans to new and existing customers; and if he will make a statement on the matter. [41272/12]
View answerI have been informed that Permanent TSB continues to offer loans to new and existing customers, albeit at reduced volumes at present and that the bank’s credit policy now includes more robust assessment criteria than would have applied in the past. In the first six months of 2012 the bank advanced approximately €100m in new lending, as reported on Page 6 of the recently published interim results. The Restructuring Plan which was submitted to the European Commission specifically envisages an increase in lending volumes through 2013 and beyond.
112. Deputy Catherine Murphy asked the Minister for Finance the arrangements in place to tax rental incomes from properties located abroad; the tax that is applied; if it is dependent on self declaration; and if he will make a statement on the matter. [41306/12]
View answerI am advised by the Revenue Commissioners that rental income received by a property owner who is resident or ordinarily resident in the State from property located outside the State is taxable here under the provisions of the Taxes Consolidation Act 1997. Taxable rents from such property are generally computed on the full amount of the rent arising, after deducting allowable expenditure, irrespective of whether the rent has or will be received in the State. However, where an individual is not domiciled here taxable rents are computed on the basis of the actual sums received in the State, without deduction.
Taxable foreign rents form part of the property-owner’s total taxable income and are subject to tax at the applicable rates in force when the charge to tax arises, currently 20% and 41% for income tax and 25% for corporation tax. They are also subject to the Universal Social Charge in the hands of an individual. Depending on the circumstances, the owner may be entitled to relief for tax paid on the rent in the country in which the property is located.
The self-assessment system applies in the normal manner to persons who receive rent from foreign property. As such, they are required to pay any tax and submit their annual tax return in a timely manner and are subject to the general self-assessment provisions relating to non-compliance and the audit of annual returns. I am also advised that Revenue's overall approach to the taxation of foreign rental income is underpinned by close consultation and cooperation with other agencies and other EU Member States and Revenue receives information on the ownership of foreign property from other countries under Mutual Assistance Agreements. Data sharing on this matter is on a continuous and on-going basis.
113. Deputy John Lyons asked the Minister for Finance the total annual saving to the Exchequer of reducing tax relief on pension contributions including the public service pension related deduction from the marginal rate to the standard rate of income tax; of a reduction in the Standard Fund Threshold from €2.3m to €622,500; of a reduction in the annual earnings limit for determining maximum allowable pension contributions for pension purposes from €115,000 to €75,000 per annum; and a reduction in the maximum tax-free lump sum payment allowable at retirement to €122,500. [41397/12]
View answerThe following is the information requested insofar as it is available. Any estimates provided are calculated on the basis that each change mentioned in the question is taken in isolation. Reducing tax relief on pension contributions to the standard rate.
I assume the Deputy is referring to individual pension contributions, the tax relief on which is allowed at the taxpayer’s marginal tax rate — the standard or higher rate of income tax as appropriate in each case. A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by income tax rate, as tax returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans — retirement annuity contracts and personal retirement savings accounts — by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers.
There is, therefore, no statistical basis for providing definitive figures. However, by making certain assumptions about the available information, it is estimated that the full-year yield to the Exchequer from confining tax relief to the standard rate of 20% in respect of pension contributions to occupational pension schemes, retirement annuity contracts and personal retirement savings accounts and confining tax relief for the Public Service pension related deduction to the standard rate of 20% would be approximately €560 million.
Reducing the Standard Fund Threshold from €2.3m to €622,500
The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes which was introduced in Budget and Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The SFT was reduced in Budget and Finance Act 2011 by over 50% to a level of €2.3 million with effect from 7 December 2010 with transitional arrangements to protect the capital values of the pension rights of individuals where these exceeded the reduced SFT on that date.
There is currently no underlying data available to my Department or to the Revenue Commissioners on which to base reliable estimates of the savings from a further reduction in the SFT to the level indicated in the question. Information on the numbers and values of individual pension funds or on individual accrued benefits are not generally required to be supplied to the Revenue Commissioners by the administrators of pension schemes and personal pension arrangements. For these reasons, the estimated savings included in respect the Budget and Finance Act 2011 change in the SFT were quite conservative, based as they were, on incomplete data and using very broad assumptions.
My Department has been engaging with representatives of the pensions industry with a view, among other things, to gathering private pensions-related data which may be of value into the future in estimating the costs of potential changes in the pensions’ tax area. These engagements are ongoing.
Reducing the annual earnings limit from €115,000 to €75,000
I assume that the Deputy is referring to the current annual earnings cap of €115,000 which operates to limit the level of tax-relieved personal pension contributions in any one year. The annual earnings cap acts, in conjunction with age-related percentage limits of annual earnings, to put a ceiling on the annual amount of tax relief an individual taxpayer can obtain on pension contributions. A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available by income tax rate, as tax returns by employers to the Revenue Commissioners of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans — Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) — by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers. There is, therefore, only a limited statistical basis for providing definitive figures.
However, by making certain assumptions about the available information, the Revenue Commissioners inform me that the combined estimated full year yield to the Exchequer from reducing the current annual earnings cap of €115,000 to €75,000 in respect of individual contributions to occupational pension schemes, RACs and PRSAs would be about €113 million.
Reducing the maximum tax-free lump sum payment allowable at retirement to €122,500
The following arrangements currently apply to retirement lump sums paid under pension arrangements approved by the Revenue Commissioners. Lump sum amounts up to €200,000 are paid free of tax. They are also paid free of USC. The portion of a lump sum between €200,001 and €575,000 is taxed on a ring-fenced basis at 20%. This means that no tax credits or other tax reliefs can be set against this portion of the lump sum. No USC is chargeable. Any amount of a lump sum in excess of €575,000 is taxed at the individual’s marginal rate of tax (credits and other tax reliefs are available). In this instance, USC is chargeable on the excess. These amounts are lifetime amounts with prior lump sums aggregating with later lump sums.
I assume from the Deputy’s question that he is proposing that retirement lump sums in excess of €122,500 be taxed as outlined above. As there is no general requirement for data on the number of persons who are receiving payments of retirement lump sums of less than €200,000 to be returned to my Department or to the Revenue Commissioners, I am not in a position to provide definitive figures on the Exchequer impact of reducing the tax-free retirement lump sum amount from €200,000 to €122,500.
As an exercise that might provide some indication of the scale of the savings involved, it is estimated that just under 10,500 individuals in the public service would be on salaries of over €82,000 and less than €133,500 which, under existing pension scheme arrangements generally applying across the public service, would deliver retirement lump sums of between €122,500 and €200,000. If it is assumed that these individuals would retire in line with retirement trends from the public service in a normal year (about 2.5%), then the additional tax yield from taxing lump sums in excess of €122,500 at 20% could be approximately €2m in a full year. I have no data on which to provide a similar estimate in relation to the private sector. I should point out, however, that one significant difference between public sector and private sector pension schemes is that private sector schemes invariably allow scheme members the option of commuting part of their pension fund for a tax-free lump sum. This option is not available to members of public sector schemes. Depending on the impact of any tax charge on retirement lump sums, the option to commute part of a pension fund may no longer be exercised by private sector pension scheme members or may be exercised in a manner that reduces the value of the lump sum taken to minimise or avoid any immediate tax charge.
114. Deputy Michael Creed asked the Minister for Finance if he will publish details of all allowances paid to staff in his Department; the business case made by his Department in respect of these allowances to the Department of Public Expenditure and Reform; the cost of each individual allowance; and if he will make a statement on the matter. [41413/12]
View answerThe following table outlines the details of allowances paid out to weekly and fortnightly paid staff in my Department in pay period 201239. As the allowances paid are not specific to my Department, no business case was made to the Department of Public Expenditure and Reform.
|
Pay Code Description |
Total |
|
Child Allowance |
€60.62 |
|
Cost of Living Allowance |
€342.58 |
|
Delegates Allowance |
€645.16 |
|
Higher Duty Allowance |
€1030.65 |
|
Local Post Allowance |
€864.05 |
|
Private Secretary Allowance |
€606.29 |
|
Rent Allowance |
€2765.00 |
|
Retro Higher Duty Pre 95 |
€5.50 |
|
Seniority All. Ahcps 1% - Mod |
€1239.54 |
|
Special Allowance (Variable) |
€56.92 |
|
Apth - All Personal To Holder |
€14.16 |
|
Assistant Head Service Officer Allowance |
€54.58 |
|
Franking Machine Allowance |
€34.32 |
|
Keyholder Allowance |
€190.22 |
|
Machine Allowance |
€406.44 |
