Written Answers Nos. 87-97
87. Deputy Alan Farrell asked the Minister for Finance the number of businesses that have availed of tax relief on research and development as outlined in the Finance Bill 2012; the way this compares to 2010 and 2011; if there are available statistics on the benefit of the scheme; if it is due to be increased in 2013; and if he will make a statement on the matter. [50320/12]
View answerI am informed by the Revenue Commissioners that the total number of companies benefiting from the research and development tax credit for 2010, the latest year available, was 1,172 at an estimated Exchequer cost of €224 million. I should highlight that these are provisional figures. Corresponding data cannot yet be provided for 2011 and 2012 as the tax returns for those years are either not yet due or are still being processed. Therefore it is not possible to provide the comparison requested by the Deputy.
Regarding the benefits of the current R&D scheme, the purpose of the scheme is to encourage R&D and innovation to be carried out in Ireland with a view to encourage the productive, high value-added sectors of our economy. Regarding any changes to the R&D tax credit, I am unable to comment at this time, but all options will be considered as part of the regular process for Budget 2013.
88. Deputy Shane Ross asked the Minister for Finance the number of meetings he has had with the public interest directors of the banks, individually and collectively, since he became Minister for Finance; the dates of these meetings; and if he will make a statement on the matter. [50429/12]
View answerThe primary duty and responsibility of the public interest directors as well as all the other directors is to ensure that the institution on whose board they serve is run properly and appropriately. The responsibility of public interest directors under company law is to the institution on whose board they serve. I work with these covered institutions through the chairpersons of the boards and that is my primary point of contact. I don’t specifically meet with Public Interest Directors appointed to the covered institutions. Public interest directors do not have a formal reporting relationship to the Minister or to the Department of Finance. I have, however, met with a Public Interest Directors on a number of occasions as follows: 05 May 2011: Meeting with AIB Directors Mr Dick Spring & Mr Declan Collier
17 May 2011: Meeting with Permanent TSB Directors Mr Ray MacSharry and Ms Margaret Hayes.
13 September 2011: Meeting with AIB Director, Dr Michael Somers*
* Dr. Michael Somers is a Government Nominee (not a Public Interest Director)
As Minister for Finance, I am strongly committed to ensuring that the boards of the covered institutions act at all times in a manner fully consistent with key public interest objectives for the banking sector. In normal course I would meet with the Chairpersons and Chief Executive Officers of each covered bank.
89. Deputy Barry Cowen asked the Minister for Finance the total payments to the Exchequer resulting from the carbon tax in each of the years since its introduction to date; if he will provide a breakdown of the energy sources oil, gas and so on from which tax revenues have been collected; and if he will make a statement on the matter. [50435/12]
View answerI am informed by the Revenue Commissioners that the total payments to the Exchequer resulting from the introduction of Carbon Tax are shown in the following tables.
|
Carbon Tax |
2010 |
2011 |
2012 (10Mths) |
|
|
€m |
€m |
€m |
|
Auto Diesel |
98.41 |
97.53 |
107.17 |
|
Petrol |
65.09 |
60.11 |
62.37 |
|
Aviation Gasoline |
0.04 |
0.04 |
0.04 |
|
Kerosene |
16.99 |
40.52 |
28.54 |
|
MGO |
27.03 |
48.95 |
44.16 |
|
Fuel Oil |
1.57 |
2.33 |
1.86 |
|
LPG (other) |
2.59 |
5.43 |
4.94 |
|
Auto LPG |
0.04 |
0.20 |
0.20 |
|
Natural Gas |
11.32 |
43.13 |
37.47 |
|
|
|
|
|
|
Total |
223.08 |
298.23 |
286.75 |
|
Value Added Tax |
2010 |
2011 |
2012 (10Mths) |
|
(Estimated) |
€m |
€m |
€m |
|
Auto Diesel |
2.07 |
2.05 |
2.46 |
|
Petrol |
13.67 |
12.62 |
14.35 |
|
Aviation Gasoline |
0.01 |
0.01 |
0.01 |
|
Kerosene |
2.29 |
5.47 |
3.85 |
|
MGO |
3.65 |
6.61 |
5.96 |
|
Fuel Oil |
- |
- |
- |
|
LPG (other) |
0.35 |
0.73 |
0.67 |
|
Auto LPG |
0.01 |
0.05 |
0.05 |
|
Natural Gas |
0.92 |
3.49 |
3.04 |
|
|
|
|
|
|
Total |
22.96 |
31.03 |
30.38 |
Please note that the VAT receipts are estimated, as the VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified and the actual VAT yield for each category cannot therefore be determined.
90. Deputy Barry Cowen asked the Minister for Finance his position in relation to the proposals to revise the existing energy taxation directive; his views on whether the negotiations on this directive will be completed during Ireland's Presidency of the European Council; in view of Ireland’s existing carbon tax regime; if the principle of subsidiarity will be applied to Ireland if any mandatory carbon tax regime is introduced across the EU; and if he will make a statement on the matter. [50436/12]
View answerThe taxation of energy products is to a certain extent harmonized at EU level. Directive 2003/96/EC known as the Energy Tax Directive (ETD) refers. The current ETD provides for minimum excise rates of taxation for energy products based on the volume of a product released for consumption. Member States must respect the minimum rates and not tax products below those rates, but are free to set higher rates for individual fuels as they see fit. The current Irish national rates are generally above the EU minimum rates. The aim of the Commission’s proposal is to revise the ETD to bring it in line with wider EU climate change and energy policy to which all Members States have signed up. Ireland broadly supports the principle of the proposal and welcomes the introduction of a carbon tax element into the EU minimum rates, it will serve to lessen competitiveness concerns arising from Ireland being a lead country in the area of carbon taxes.
Discussions are ongoing under the Cypriot Presidency and, if the file is not concluded by the end of the year, Ireland will endeavour to progress the negotiations during its Presidency.
91. Deputy Micheál Martin asked the Minister for Finance if bank bonuses were already discussed at the level of EU leaders; or if there are plans to discuss them in the context of the Liikanen review; and if he will make a statement on the matter. [42930/12]
View answer92. Deputy Micheál Martin asked the Minister for Finance if he has discussed increasing banking regulation with any of the EU leaders recently; and if he will make a statement on the matter. [42927/12]
View answer97. Deputy Micheál Martin asked the Minister for Finance if he has received a copy of the Liikanen Review Report; and if he will make a statement on the matter. [45674/12]
View answerI propose to take Questions Nos. 91, 92 and 97 together.
In May 2012 the Commission called for a banking union to restore confidence in banks and in the euro. This was reflected in the report on Economic and Monetary Union prepared by the Presidents of the European Council, the Commission, the Eurogroup and the European Central Bank. A complete banking union is understood to combine a single supervisory structure, a single rulebook, a common deposit protection and a single bank resolution mechanism. The Interim report on the Future of the Economic and Monetary Union from the President of the Council was discussed at the European Council on 18/19 October. Discussions are continuing in relation to proposals on a Single Supervisory Mechanism and the associated regulation amending the European Banking Authority Regulation, the Bank recovery and resolution proposal, the recast of the deposit Guarantee Scheme Directive and the Capital Requirements Regulation and Directive (CRD IV). The issues raised by the Deputy refer primarily to the Capital Requirements Regulation and Directive. I attended the ECOFIN Council meetings on 9 October and 13 November. At both of these meetings the Cypriot Presidency gave an update on the progress thus far in the negotiations with the European Parliament on the Capital Requirements Regulation and Directive (CRD IV). The two proposals set out to amend and replace the existing capital requirement directives by two new legislative instruments: a regulation establishing prudential requirements that institutions need to respect, and a directive governing, amongst other things, access to deposit-taking activities.
They are aimed at transposing into EU law an international agreement approved by the G-20 in November 2010. The Basel III agreement, concluded by the Basel Committee on Banking Supervision, aims to strengthen bank capital requirements, introduces a mandatory capital conservation buffer and a discretionary countercyclical buffer, and foresees a framework for new regulatory requirements on liquidity and leverage. While the proposed regulation and directive contain references to the issue of bank remuneration, the issue of bank bonuses was not discussed at the recent ECOFIN meetings.
In tandem with this, the conclusions of the Heads of State or Government at the European Council on 18/19 October called for the rapid conclusion of the single rule book, including agreement on the proposals on bank capital requirements (CRD IV) by the end of the year.
As the Deputy will be aware, the Liikanen Report was published on 2 October 2012 and my Department has received a copy of the Report and is carefully considering the Recommendations of the Liikanen Group, which includes a number of recommendations on banks’ remuneration schemes including bonuses. The European Commission is currently conducting a public consultation and a legislative initiative is not anticipated before spring of next year. A legislative initiative would likely be accompanied by a regulatory impact analysis and further consultation period.
I look forward to seeing the results of the public consultation currently underway. We will need to examine the outcome of this process and the impact of any forthcoming legislative proposals on our recovering banking system.
Ireland broadly supports the EU’s regulatory initiatives to bring greater stability to the banking sector. We agree that the EU banking sector should be capable of meeting the needs of and supporting EU economies and societies. I hope that our efforts in this regard will convert a safe and stable banking system into one that also supports growth in the real economy.
93. Deputy Micheál Martin asked the Minister for Finance his views on whether the recommendations of the Fiscal Council should be implemented; and if he will make a statement on the matter. [42653/12]
View answer96. Deputy Micheál Martin asked the Minister for Finance if he has received the recommendations of the Fiscal Council; and if he will make a statement on the matter. [45673/12]
View answerI propose to take Questions Nos. 93 and 96 together.
In line with normal practice, the Fiscal Council forwarded its September 2012 Fiscal Assessment Report to me just before its publication. The Fiscal Council’s analysis and recommendations were considered in my Department’s preparation of its updated economic and fiscal projections, which will be published this month in the Medium-Term Fiscal Statement (MTFS).
The Council believes that it would be prudent for the Government to implement more consolidation than currently planned so as to achieve a deficit of 1.9% of GDP in 2015. This would require €1.9 billion in additional consolidation over what is set out in the SPU for the period 2014-2015 but would result in a significantly improved debt trajectory. The Fiscal Council suggested that there be no additional consolidation in 2012, but further consolidation of €0.4 billion in 2014 and €1.5 billion in 2015. The Council suggests that this could provide additional fiscal sustainability, by front-loading the consolidation necessary to meet the General Government Deficit target of 3% by 2015.
While the Fiscal Council suggests that it would be prudent to undertake additional consolidation in 2014 and 2015, it states that the additional adjustment is not recommended lightly given the existing pressures on domestic demand and the high burden of unemployment.
The Government is very conscious of the potential impact additional consolidation could have on economic activity. In striving to restore sustainability to the public finances, it is necessary to also be mindful of protecting the emerging economic recovery and seek to strike the right balance between the two. This balancing act is difficult but the Government view is that a reasonable balance has been achieved. The consolidation completed to date has been achieved with remarkable social cohesion, and the adjustment path is supported by the European Commission, ECB and IMF. The fact that the Council sees Ireland achieving its deficit targets on the basis of the already committed adjustments reinforces this view in that regard. However, we will continue to closely monitor economic developments and will take the measures necessary to meet our targets.
94. Deputy Micheál Martin asked the Minister for Finance if he has met the members of the Fiscal Council recently; and if he will make a statement on the matter. [44105/12]
View answer98. Deputy Micheál Martin asked the Minister for Finance if officials from his Department have met with members of the Fiscal Council recently; and if he will make a statement on the matter. [47227/12]
View answer105. Deputy Micheál Martin asked the Minister for Finance if he has met the Fiscal Council or members thereof recently; and if he will make a statement on the matter. [49612/12]
View answerI propose to take Questions Nos. 94, 98 and 105 together.
The following table details recent meetings between the Department of Finance and the Irish Fiscal Advisory Council.
|
Minister/Officials |
Date of Meeting |
Nature of Meeting |
|
Finance Officials |
Tuesday, 23rd October 2012 |
To discuss methodological issues related to the Departments forecasting approach |
|
Minister Noonan and 2 Finance Officials |
Thursday, 25th October 2012 |
General fiscal discussion |
|
Finance Officials |
Tuesday, 6th November 2012 |
To discuss practices & procedures required in order to set up IFAC on a statutory basis |
As the Deputy will be aware, officials from my Department are in regular contact with the Irish Fiscal Advisory Council in relation to various matters.
95. Deputy Micheál Martin asked the Minister for Finance if the reports that the draft EU agenda for the October Council meeting contain proposals for tighter binding contracts for eurozone countries expanding control of national economic policies are correct; his policy in relation to same; and if he will make a statement on the matter. [44101/12]
View answerArising from the Four Presidents’ Paper on the Economic and Monetary Union was released in June, an interim report was presented by President Van Rompuy to the October European Council. Among other things, the report identified the single supervisory mechanism and the broader banking union as essential building blocks to delivering a genuine Economic and Monetary Union. The report included proposals which, according to Van Rompuy, would improve the resilience of the Economic and Monetary Union as a whole. One of the proposals in the interim report was that Member States could enter into individual arrangements of a contractual nature with the EU institutions on the reforms they commit to undertake. President Van Rompuy received a mandate, together with his colleagues, to explore the proposals further and to present a specific roadmap for the achievement of a genuine Economic and Monetary Union at the December 13-14 European Council.
