Written Answers Nos. 60 - 65
60. Deputy Brendan Griffin asked the Minister for Finance if he will seek an extension of VAT reduction to the small pub trade in view of the labour intensive nature of the business and the role that small Irish pubs play in the tourism industry; and if he will make a statement on the matter. [53204/12]
View answer61. Deputy Brendan Griffin asked the Minister for Finance if he will consider the expansion of VAT reduction to the small pub trade, in view of the labour intensive nature of the business and the role that small Irish pubs play in the tourism industry; and if he will make a statement on the matter. [53097/12]
View answerI propose to take Questions Nos. 60 and 61 together.
I would point out that the services supplied by small pubs are treated for VAT purposes as those services supplied by restaurants and other such venues of hospitality. Catering supplied by small pubs is liable to VAT at the 9% VAT rate, as it is where supplied by a restaurant. Similarly, alcohol supplied by a small pub is liable to VAT at the standard VAT rate of 23%, the same as if it was supplied by a hotel, restaurant or larger pub. With regard to expanding the 9% rate to include the supply of alcohol by small pubs, the VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive does not allow for the application of a reduced VAT rate to the supply of alcohol.
62. Deputy Pearse Doherty asked the Minister for Finance if he will provide a breakdown by bank of the number of employees in each of the covered institutions who receive a salary in excess of €250,00 per year and the total aggregate value of the portion of the salary above €250,000 for each institution; and if he will make a statement on the matter. [53103/12]
View answerAs the Deputy will be aware officials in my Department and Mercer have been working on a remuneration review of the Covered Banks and do not currently have the information you have requested. My officials and the banks have provided a very significant level of detail on remuneration and pensions in the Covered Banks and other institutions in tight timeframes. We have received over 50 Parliamentary Questions on these topics alone in the past few weeks. The further more detailed information sought in this question is not available to my Department at the present time and the compilation of this information, is likely to delay completion of the Mercer Remuneration Report which is a Government priority. I have committed to publishing the details underpinning the review in view of the public interest in the matter. The report will provide a comprehensive and professional analysis of remuneration structures and levels across the Covered Banks both now and before the onset of the banking crisis. As part of the review process I will ask my officials to engage with the banks to agree an appropriate level of public disclosure relating to remuneration that ensures the right balance between the public good and the commercial and data protection issues which arise for the Covered Banks.
63. Deputy Pearse Doherty asked the Minister for Finance further to the statement by Permanent TSB, in which he is shareholder of 99.5% of the shares, confirming that it is selling two operating units to management for nominal consideration, if he will confirm the number of staff employed at both units and the number of staff being transferred to the buyer of the units. [53111/12]
View answerI have been informed that in line with the Restructuring Plan which Permanent TSB (PTSB) has submitted to the European Commission PTSB has agreed to the disposal of the majority of the loan assets of Permanent TSB Finance Limited to Consumer Auto Receivables Finance Limited, a company established for the purposes of the transaction. The loan assets of Blue Cube Loans Limited, a separate subsidiary of the Group which is operated by Permanent TSB Finance Limited, will also transfer as part of the agreement. In addition a small portfolio of largely corporate loans is being sold to a third party global bank. I have been informed that neither Consumer Auto Receivables Finance Limited nor the global bank are linked to the management of PTSB, Permanent TSB Finance Limited or Blue Cube Loans Limited.
I have been informed that the Consumer Auto Receivables Finance Limited transaction was completed following a competitive sale process. In a separate transaction PTSB has agreed to sell for a nominal consideration the business platform (which does not include any loan assets) of Permanent TSB Finance Limited to First Citizen Finance Limited. This is a new company which has been established and is owned by members of the management team of Permanent TSB Finance Limited and it has entered into a contract to service the acquired loan assets.
Having outlined the background to the transactions above PTSB has informed me that all 82 staff of Permanent TSB Finance Limited are expected to transfer to First Citizen Finance Limited and their terms and conditions are protected under the relevant TUPE legislation.
64. Deputy Eoghan Murphy asked the Minister for Finance his views on withdrawing or reducing tax relief for pension contributions when the pension pot reaches a certain level, say €65,000 per annum. [53148/12]
View answerThe scale of pension saving reliefs available to higher earners, in particular, has been significantly restricted over recent years. The maximum allowable pension fund for tax purposes at retirement (the Standard Fund Threshold) was reduced from over €5.4 million to €2.3m in Budget and Finance Act 2011 while the annual earnings cap which operates in conjunction with age-related percentage limits to determine the annual amount of tax-relievable pension contributions has also been reduced over a period from its peak of over €275,000 in 2008 to its current level of €115,000 per annum. The incentive regime for pension saving will be considered, in common with other tax relief and incentive arrangements, in the context of my preparations for the forthcoming Budget.
65. Deputy Eoghan Murphy asked the Minister for Finance if he has considered ways of incentivising Irish based pension funds to invest in the economy here in a sustained way. [53149/12]
View answerI understand the Deputy is referring to tax incentives. I should explain in the first instance that pension funds approved by the Revenue Commissioners are exempt from tax on any income or gains derived from their investment activities. Officials of my Department and of the Department of Public Expenditure and Reform continue to engage with third-party investors on how investment deals could be structured to facilitate the provision of funding for new infrastructure projects. With regard to tax-based incentives for investment in the economy, pension fund investments should be executed at a level of return comparable to that earned by other investors accepting the same level of investment risk. I am conscious that there are aspects of such investments, such as maturity, liquidity and risk appetite, that may be of particular concern to pension funds and engagement is continuing with the sector on these issues.
