Gerry Adams
Question:42. Deputy Gerry Adams asked the Minister for Finance the number of occasions on which he or his officials have met with the Irish Bankers Federation; and the dates of the meetings. [48761/12]
View answerDepartmental Meetings
Questions (42)
Written answers
My Department has supplied me with the following list of dates in 2011 and 2012 that my officials met with officials of the Irish Bankers Federation.
2011
3 February (1 meeting)
15 March (1meeting)
13 April (1 meeting)
14 April (1 meeting)
15 April (1 meeting)
18 April (1 meeting)
25 May (1 meeting)
12 July (1 meeting)
11 August (1 meeting)
29 August (1 meeting)
22 September (1 meeting)
13 October (1 meeting)
2 November (1 meeting)
3 November (2 meetings)
10 November (1 meeting)
11 November (1 meeting)
16 December (1 meeting)
21 December (1 meeting)
2012
31 January (1 Meeting)
15 February (2 meetings)
28 February (1 meeting)
1 March (1 meeting)
16 April (1 meeting)
8 May (1 meeting)
9 May (1 meeting)
11 May (1 meeting)
14 May (1 meeting)
16 May (1 meeting)
23 May (1 meeting)
30 May (1 meeting)
20 June (1 meeting)
27 June (2 meetings)
5 July (1 meeting)
19 July (1 meeting)
24 July (1 meeting)
1 August (2 meetings)
22 August (1 meeting)
14 September (1 meeting)
18 September (1 meeting)
2 October (1 meeting)
23 October (1 meeting)
1 November (1 meeting)
6 November (2 meetings)
As Minister I have also met with the Irish Bankers Federation on one occasion, 16th May 2012
Banking Sector Remuneration
Questions (43)
Pearse Doherty
Question:43. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form, with respect to the Irish Bank Resolution Corporation, the number of the staff whose annual salary at 31 December 2011 fell in the following bands, €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999. [48795/12]
View answerWritten answers
I have been advised by the Bank of the following information with regard to staff’s annual salary as at 31st December 2011.
|
(Salary only) |
Staff No’s as at 31 Dec 2011 Ireland, UK and US |
|
€0 - €99,000 |
1060 |
|
€100,000 - €149,000 |
108 |
|
€150,000 - €199,000 |
23 |
|
€200,000 - €299,000 |
21 |
|
€300,000 - €399,000 |
3 |
|
€400,000 - €499,000 |
5 |
|
€500,000+ |
1 |
Banking Sector Remuneration
Questions (44, 45, 46)
Pearse Doherty
Question:44. Deputy Pearse Doherty asked the Minister for Finance the salary paid to the Chief Executive Officer of the Irish Bank Resolution Corporation Mr MikeAynsley and to provide a listing and quantification of any additional benefits paid; and in respect of any expenses allowance; if he will confirm if such allowances are paid only in respect of vouched and receipted expenditure. [48796/12]
View answerPearse Doherty
Question:45. Deputy Pearse Doherty asked the Minister for Finance if he will confirm if the Chief Executive Officer of the Irish Bank Resolution Corporation Mr Mike Aynsley is employed on a temporary contract; the date on which this contract was entered into; the termination date of this contract and if he will quantify any termination payments provided for under the contract. [48797/12]
View answerPearse Doherty
Question:46. Deputy Pearse Doherty asked the Minister for Finance if the Chief Executive Officer of the Irish Bank Resolution Corporation Mr Mike Aynsley is employed on a continuing or permanent contract and if he will quantify any termination payments provided for under the contract. [48798/12]
View answerWritten answers
I propose to take Questions Nos. 44 to 46, inclusive, together.
I have been advised by IBRC that the CEO, Mike Aynsley, is a permanent employee of the Bank. Mr. Aynsley’s contract was entered into in August 2009 and was effective from 7 September 2009. The normal termination date of the contract is upon the CEO’s 60th birthday which is 24 March 2018. Standard termination payments in lieu of notice exist. All temporary allowances are paid only in respect of vouched and receipted expenditure.
|
- |
2009 |
2010 |
2011 |
2012 forecast |
|
- |
€ (‘000) |
€ (‘000) |
€ (‘000) |
€ (‘000) |
|
Salary |
€160 |
€500 |
€500 |
€500 |
|
Benefits |
€18 |
€41 |
€38 |
€38 |
|
Pension |
€40 |
€125 |
€125 |
€125 |
|
Temporary Allowances |
€125 |
€294 |
€203 |
€0 |
|
Total |
€343* |
€960** |
€866 |
€663 |
*Note: The amount of €343,000 differs to the figure of €329,000 reported in the Bank’s Annual Report & Accounts 2009 as a result of adjustments made in the following year.
**Note: The amount of €960,000 differs to the figure of €974,000 reported in the Bank’s Annual Report & Accounts 2010 as a result of adjustments made for 2009.
Banking Sector Remuneration
Questions (47)
Pearse Doherty
Question:47. Deputy Pearse Doherty asked the Minister for Finance if he has contacted the Irish Bank Resolution Corporation requesting staff whose annual salary is in excess of €200,000 to waive 15% of their salary or such amount in excess of €200,000 whichever is the lesser; and if he has, the date on which he first made this contact; the number of staff whose annual salaries were in excess of €200,000 at that date; the number of staff who acquiesced to the request for the waiver; the number of staff who refused the request for the waiver and the number of staff who have not responded to the request for the waiver. [48799/12]
View answerWritten answers
At a meeting on the 5th April 2012, I asked the Chairman of IBRC, Mr Alan Dukes, if the Board of the Bank would consider a reduction of 15% in senior management salaries. Mr Dukes subsequently informed me that reductions in pay levels for individual staff in IBRC, (the entity tasked with winding down the former Anglo Irish Bank and INBS), had been considered by the Board of the Bank and that a decision had been reached not to implement cuts at that time. I am informed by the Bank that the decision not to pursue pay cuts was based on the difficulty faced by the Bank in retaining and attracting staff, and the fact that the remuneration packages paid to the new management team are lower than those historically paid by the Bank. Fees however for Non-Executive Directors were initially reduced by 20% at the end of 2008 and by a further 15% in July of 2012.
Tax Reliefs Availability
Questions (48)
Eoghan Murphy
Question:48. Deputy Eoghan Murphy asked the Minister for Finance if he will provide details of all investment schemes currently operated by the State which involve some form of tax relief or similar, whereby persons investing money in small and medium sized enterprises may receive a portion of that investment back through the tax system; the maximum amount under each scheme which can be invested and the maximum rate of relief. [48847/12]
View answerWritten answers
The schemes providing for tax relief for investment in small and medium-sized enterprises are as follows.
The Employment and Investment Incentive (EII)
EII is a tax incentive that provides tax relief for investors who purchase new ordinary shares in small and certain medium-sized companies carrying on a trade, and who hold those shares for a minimum of three years. The incentive is designed to help companies to raise new risk capital to expand their activities. An individual investor can obtain income tax relief on investments up to a maximum of €150,000 per annum, subject to the high income individuals' restriction, in each tax year up to 2013. The maximum amount that may be raised by a company in any 12 month period is €2.5 million, subject to a lifetime limit of €10 million.
The maximum rate of tax relief available to an individual who subscribes for new ordinary shares is 30% of the amount invested. However, a further 11% tax relief may be available at the end of the holding period, provided the company concerned has either increased its number of employees or spent at least 30% of the investment raised on research and development.
Seed Capital Scheme (SCS)
The SCS is designed for individuals who are or were in employment, which was subject to PAYE. In general, it operates by providing that an eligible individual, who makes an investment in new ordinary shares in a qualifying company, may set off the amount of that investment against his or her taxable income in any of the previous 6 years, which will result in an overpayment of tax. The individual may then claim a refund of the tax overpaid. For example, an individual, who makes an investment of €10,000 in new ordinary shares and who sets off the amount of that investment against his or her taxable income for a year of assessment in which his or her marginal rate of tax was 41%, will be entitled to claim a tax refund of €4,100.
The maximum investment that can be set against taxable income in any single year of assessment is €100,000. This means that the maximum total investment that can be made under the Seed Capital Scheme is €600,000, as the individual may set up to €100,000 against the taxable income of each of the previous 6 years.
An eligible individual is an individual who takes up full-time employment with the company and holds at least 15% of the issued ordinary share capital for the required period, normally 3 years.
A qualifying company is a new company that carries on a trade except where the activities of that trade consist of: (a) activities which were previously carried on by another person and to which the company has succeeded, or (b) activities which were previously carried on as part of another person’s trade or profession.
Film Relief (Section 481)
The film relief scheme was introduced to promote the Irish film industry, by encouraging investment in Irish made films. Tax relief on the full amount of the investment is available to individual investors at their marginal rate of tax (41% for top rate taxpayers). Individual investors can invest up to €50,000 under the scheme in any year of assessment. The maximum amount which can be raised by a film production company, under the scheme is 80% of the total cost per production, subject to a maximum of €50,000,000.
Universal Social Charge Application
Questions (49)
Dominic Hannigan
Question:49. Deputy Dominic Hannigan asked the Minister for Finance the analysis he has has undertaken to assess the number of persons who would voluntarily leave the country if the universal social charge was raised to 10% on earnings over €100,000; if he has any evidence that persons would leave if this was to be implemented; and if he will make a statement on the matter. [48851/12]
View answerWritten answers
It is the standard practice for the Minister for Finance to review all tax expenditures and reliefs in the run up to the annual Budget. It is also a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, in general, the marginal tax rate, which is described as the tax rate that applies to the last euro of the base, is an important consideration in the formulation of tax policy. Marginal tax rates are important because they influence individual decisions to work more. The OECD in its working paper ‘Tax and Economic Growth’ points to the “possibility that high top marginal rates will increase the average tax rates paid by high-skilled and high-income earners so much that they will migrate to countries with lower rates resulting in a brain drain which may lower innovative activity and productivity”.
It is also important to point out that higher marginal tax rates for earners may also incentivise a greater level of tax evasion and contribute to the development of a shadow economy.
Regardless of the state of the economic cycle, gross migration flows to and from Ireland are very large in comparative terms, indicative of the extremely open nature of the Irish labour market. By way of background, net migration turned rapidly from positive to negative between the years ending April 2008 and April 2010, evidence of the rapid response of workers to labour market conditions in Ireland during that period.