Written Answers Nos. 193-217
193. Deputy Timmy Dooley asked the Minister for Finance his views on the recent report from the Irish Hotels Federation and the proposal contained within the report for a limited form of tax relief to attract investment into the hotel industry; and if he will make a statement on the matter. [52632/12]
View answerI assume the Deputy is referring to the report by Dr. Alan Aherne for the Irish Hotels Federation. Officials in my Department are examining the proposals made in the report and will set out the issues for my consideration in due course.
194. Deputy Sandra McLellan asked the Minister for Finance his views on whether the 2011 jobs initiative has delivered value added jobs in the tourism sector in view of the fact that the cost to the State was €120 million in 2011 and €350 million in a full year; and if he will make a statement on the matter. [52690/12]
View answer195. Deputy Sandra McLellan asked the Minister for Finance if he will provide a breakdown of the number of persons employed full time and part time since the introduction of the jobs initiative which involved the reduction of VAT in services relating to the tourism sector; and if he will make a statement on the matter. [52691/12]
View answer196. Deputy Sandra McLellan asked the Minister for Finance the cost to the State of each job created in the accommodation and food sector as a result of the jobs initiative; and if he will make a statement on the matter. [52692/12]
View answer197. Deputy Sandra McLellan asked the Minister for Finance if he will provide a breakdown in terms of rates of pay for the 6,200 jobs which have been created as a result of the job initiative, May 2011, which involved a reduction in the rate of VAT in goods and services relating to tourism; if he will specify the percentage of these jobs that are at the minimum rate of pay; and if he will make a statement on the matter. [52689/12]
View answerI propose to take Questions Nos. 194 to 197, inclusive, together.
As part of the Jobs Initiative and in an effort to support job creation in the tourism industry, the Government introduced a temporary reduced rate of VAT of 9 per cent. The measure took effect at the start of the third quarter of 2011 and applied mainly to labour-intensive services provided by restaurants and hotels, as well as various entertainment services.
While I am in no doubt that the measures introduced as part of the Jobs Initiative have contributed in no small part to the employment gains we have seen in the accommodation and food sector since the second quarter of 2011, it is not possible to put a precise figure on the level of job creation which is directly attributable to these measures. Clearly factors other than the VAT reduction will impact on employment numbers.
However, research carried out by the Department and published in the Medium-Term Fiscal Statement (November 2012), showed that employment gains in the accommodation and food sector - the most relevant sector in terms of the available data published by the Central Statistics Office - since the rate reduction were contrasted with declines in both economy-wide employment and the wider service sector employment over the same period, suggesting that the measures did have a positive impact on employment growth. In this context I provided assurance to the tourist industry that the 9 per cent rate will continue throughout 2013, as currently legislated for.
While several sectors are likely to be affected by the measure, the impact is likely to have been greatest in the accommodation and food services activities sector. The broad employment figures, as well as those at the sector level, following the reduction in the VAT rate as part of the Jobs Initiative are outlined below. It should be noted that the CSO does not provide a breakdown between full and part-time employment at a sectoral level.
|
Seasonally Adjusted (‘000) |
2011 Q2 |
2011 Q3 |
2011 Q4 |
2012 Q1 |
2012 Q2 |
2012 Q3 |
|
Total Employment |
1,857.6 |
1,831.6 |
1,850.0 |
1,840.7 |
1,832.7 |
1,826.9 |
|
Full-time |
1,420.1 |
1,404.3 |
1,411.8 |
1,404.4 |
1,393.4 |
1,389.2 |
|
Part-time |
438.3 |
434.7 |
434.7 |
430.5 |
441.0 |
446.6 |
|
Accommodation and Food Services |
114.9 |
117.4 |
121.6 |
119.2 |
120.5 |
119.3 |
In relation to rates of pay, unfortunately the CSO does not provide such granular data as to allow analysis of this nature on an individual level. However, on a sectoral basis, looking at the average hourly earnings in the accommodation and food services activities sector may prove informative. These figures, which are not seasonally adjusted, are outlined below.
|
Average Hourly Earnings (€) |
2011 Q2 |
2011 Q3 |
2011 Q4 |
2012 Q1 |
2012 Q2 |
2012 Q3 |
|
Accommodation and Food Services |
12.52 |
12.58 |
12.43 |
12.10 |
12.38 |
12.34 |
198. Deputy Peadar Tóibín asked the Minister for Finance his views on the Credit Review Office's finding that 55% of appeals regarding loan refusals to small and medium enterprises have been overturned. [51880/12]
View answerThe latest report of the Credit Review Office Shows that the CRO upheld the banks’ decision in 76 cases and disputed the decision in 96 cases and the banks subsequently provided credit. In addition there were 20 cases where either more work was needed by the bank and borrower or the review was withdrawn.
These figures show that the CRO can make a genuine difference in relation to refused applications for credit. The report shows that almost €10 million in credit was provided on foot of reviews which protected over 800 jobs.
As the Deputy may be aware, I recently published an assessment of the Credit Review Office carried out by Grant Thornton and engaged in a public consultation process in order to see what more the Credit Review Office can do to ensure SMEs are getting the support on bank lending they require. My officials are currently looking at how to implement the appropriate changes to the CRO regime. As a first step, I sanctioned an increase in the numbers on the Credit Review Panel in order to facilitate faster processing of decisions, thereby implementing one of the recommendations in the assessment.
The CRO report shows that businesses who are refused credit have a realistic prospect of a successful outcome in CRO reviews and I would strongly urge viable SMEs to appeal any refusals of credit to the CRO.
199. Deputy Peadar Tóibín asked the Minister for Finance if he will detail research produced or identified by his Department that examines any correlation between the marginal rate of tax, foreign direct investment and job creation. [51875/12]
View answerMy Department considers various research publications and reports on an on-going basis as part of the process of developing tax policy.
While the Department has not published its own research in relation to the points raised by the Deputy, I would refer to the OECD Report, “Tax Effects on Foreign Direct Investment – Recent Evidence & Policy Analysis” (2008) OECD Tax Policy Studies No. 17, which found that a 1% increase in the corporate tax rate reduces inward investment by 3.7% on average. Another report by the OECD, “Tax Policy Reform and Economic Growth” (2010) OECD Tax Policy Studies No. 20, corporate taxes were identified as the tax which are most harmful to economic growth prospects.
The above is just a sample of the types of reports that my Department has identified as being relevant in looking at the relationship between tax, foreign direct investment and job creation.
200. Deputy Seamus Kirk asked the Minister for Finance further to his reply of 21 November 2012, if he will outline by county or by region, the number of investigations carried out to combat criminal activity in the sale or smuggling of counterfeit, laundered and illegal products, under the following headings: oil / fuel, tobacco, counterfeit goods; and if he will list in tabular form the comparable figures for the previous three years; if he feels enough is being done to protect the Exchequer from this criminal activity; if he will outline any proposals that he is considering to protect retailers from the damage of this illegal activity; and if he will make a statement on the matter. [1836/13]
View answerThe Revenue Commissioners are responsible for tackling the illicit trade in oil and tobacco products, and for dealing with counterfeit products that are being imported from or exported to countries outside the European Union. As I indicated in my reply to the Deputy’s Questions Nos. 55 and 56 of 21 November 2012, the Revenue Commissioners attach a high priority to combating criminal activities of these kinds, and are committed to continuing the extensive enforcement work that they undertake to detect and seize illicit products and to prosecute those engaged in illegal activities. They are conscious also of the need for this ongoing activity to be complemented by the development of innovative ways for dealing with this criminality, and are, for example, engaged at present, in cooperation with Her Majesty’s Revenue and Customs, on work to obtain a new oil marker. Details of the quantities of oil and tobacco products seized in each of the years from 2009 to 2012, broken down by reference to the Revenue Commissioners’ Regions, are given in Table 1 below. Table 2 details the numbers of convictions for offences relating to illicit oil and tobacco products and counterfeit alcohol, disaggregated on the same basis, during that period. Table 3 gives the total numbers of seizures of counterfeit products by the Revenue Commissioners, and the numbers of items seized, in those years. It has not been possible, in the time available, to provide a regional breakdown of those data.
Table 1
Seizures of Illicit Fuel and Illicit Tobacco Products
|
Region/Year |
Mineral Oil |
Cigarettes |
Other Tobacco Products |
|
Dublin |
|||
|
2012 |
272,300 litres |
82,728,113 |
3,617 kg |
|
2011 |
75,910 litres |
78,412,634 |
7,069 kg |
|
2010 |
16,575 litres |
98,474,429 |
1,398 kg |
|
2009 |
82,520 litres |
81,910,216 |
9,452 kg |
|
East South East |
|||
|
2012 |
95,930 litres |
9,775,509 |
963 kg |
|
2011 |
73,100 litres |
8,107,651 |
3315 kg |
|
2010 |
7,050 litres |
7,150,076 |
316 kg |
|
2009 |
9,590 litres |
7,048,071 |
380 kg |
|
South West |
|||
|
2012 |
28,130 litres |
1,738,953 |
433 kg |
|
2011 |
30,337 litres |
12,611,764 |
576 kg |
|
2010 |
27,600 litres |
31,493,729 |
1,303 kg |
|
2009 |
8,500 litres |
3,645,684 |
284 kg |
|
Border Midlands West |
|||
|
2012 |
683,263 litres |
1,351,935 |
264 kg |
|
2011 |
866,084 litres |
9,955,040 |
199 kg |
|
2010 |
276,344 litres |
41,313,937 |
351 kg |
|
2009 |
184,107 litres |
125,922,257 |
337 kg |
Table 2
Convictions
|
Region/Year |
Cigarette Smuggling |
Cigarette Selling |
Mineral Oil Offences |
Laundered Fuel offences |
Counterfeit Spirits Offences |
|
Dublin |
|||||
|
2012 |
37 |
23 |
24 |
- |
- |
|
2011 |
79 |
19 |
48 |
- |
1 |
|
2010 |
82 |
7 |
71 |
- |
- |
|
2009 |
118 |
7 |
51 |
- |
4 |
|
East South East |
|||||
|
2012 |
4 |
7 |
29 |
- |
1 |
|
2011 |
2 |
7 |
27 |
- |
- |
|
2010 |
2 |
10 |
14 |
- |
1 |
|
2009 |
2 |
2 |
14 |
3 |
1 |
|
South West |
|||||
|
2012 |
12 |
31 |
53 |
- |
5 |
|
2011 |
23 |
17 |
37 |
- |
1 |
|
2010 |
3 |
19 |
56 |
- |
1 |
|
2009 |
1 |
8 |
59 |
- |
3 |
|
Border Midlands West |
|||||
|
2012 |
3 |
15 |
102 |
2 |
1 |
|
2011 |
- |
14 |
113 |
2 |
- |
|
2010 |
10 |
5 |
91 |
4 |
4 |
|
2009 |
26 |
3 |
59 |
3 |
- |
Table 3
Seizures of Counterfeit Goods
|
Year |
No. of Seizures |
Quantity of Items |
|
2012* |
5,071 |
120,454 |
|
2011 |
4,166 |
146,472 |
|
2010 |
1,278 |
66,852 |
|
2009 |
1,019 |
462,993 |
(* To 30 November)
201. Deputy Michael McGrath asked the Minister for Finance the amount of contingent convertible capital notes and preference shares the State holds in the covered banks; the dates on which these were acquired; the interest payable on each security; their maturity dates; his plans for these investments; and if he will make a statement on the matter. [1873/13]
View answerThe State’s investment in the contingent convertible capital notes of AIB, Bank of Ireland and PTSB dates back to the 2011 PCAR exercise while the preference shares were acquired in 2009 as a result of the Government’s recapitalisation of AIB and Bank of Ireland. It is government policy to separate the State from its’ banks, a policy which I believe has shared support in this house. This policy will see the State this year remove the guarantee of bank deposits and liabilities which dates back to September 2008 and it also requires us to exit our bank investments over time and when conditions allow. Information on the holdings of these instruments in each of the covered banks is provided in the following paragraphs.
AIB
The State holds €1.6 billion of contingent convertible capital notes in AIB which were issued on 26 July 2011. The interest payable on these securities is €160 million per annum. The maturity date of this instrument is 28 July 2016. Further information on the terms of these notes can be found in Note 45 of the Annual Financial Report 2011 (Page 340).
The State holds €3.5 billion of preference shares in AIB. These were acquired on 13 May 2009. The interest payable on these securities is €280 million per annum and is payable in cash or ordinary shares in the event of non-payment in cash. AIB issued ordinary shares to the State in lieu of the dividend due on the preference shares in May 2010, May 2011 and May 2012. The principal steps up in 2014 by 25% if not redeemed. Further information on this can be found in Note 46 of the Annual Financial Report 2011 (Page 344).
Permanent TSB
The State holds €0.4 billion of contingent convertible capital notes in Permanent TSB which were issued on 27 July 2011. The interest payable on these securities is €40 million per annum. The maturity date of this instrument is 28 July 2016. Further information on the terms of these notes can be found in Note 32 to the Irish Life and Permanent Group Holdings plc 2011 Annual Report (Page 153).
Bank of Ireland
The State holds €1.8 billion of preference shares in BOI. These were initially acquired on 31 March 2009. The interest payable on these securities is €188 million per annum which is payable in cash or ordinary shares in the event of non-payment in cash. Bank of Ireland issued ordinary shares in lieu of the dividend due on the preference shares to the State in February 2010. The principal steps up in 2014 by 25% if not redeemed. Further information on this can be found in Notes 48 and 50 of the Annual Financial Report 2011 (Pages 273 and 280).
As announced by my Department last week the State has been successful in disposing of its entire €1 billion holding of Contingent Capital Notes (CCN’s) in Bank of Ireland. In the end the book build process generated significant excess demand to enable the State to dispose of its entire holding in the bonds at a price of 101% of their par value plus accrued interest. The transaction settled on Tuesday the 15th of January and the State was paid proceeds of just over €1,056 million, comprising principal of €1,000 million, interest accrued of over €46 million covering the period 29th July 2012 to date, and a profit of €10 million.
203. Deputy Pearse Doherty asked the Minister for Finance if he will detail the total tax take as a percentage of GNP from 1992 to 2012. [1895/13]
View answerAs the Deputy may be aware the Department of Finance has a publicly available databank on its website with comprehensive tax data where this information can be found (http://databank.finance.gov.ie/). Similarly GNP data can be found on the CSO website (www.cso.ie). The estimate for 2012 GNP is taken from the Budget 2013 publication and is rounded to the nearest €25 million.
The information requested by the Deputy is provided.
|
Year |
Total Tax (€m) |
GNP |
Total Tax as % of GNP |
|
€ Million |
€ Million |
% |
|
|
1992 |
€11,314 |
€35,998 |
31.4% |
|
1993 |
€12,322 |
€38,943 |
31.6% |
|
1994 |
€13,758 |
€42,146 |
32.6% |
|
1995 |
€14,392 |
€47,634 |
30.2% |
|
1996 |
€15,897 |
€52,027 |
30.6% |
|
1997 |
€18,124 |
€59,660 |
30.4% |
|
1998 |
€20,480 |
€68,739 |
29.8% |
|
1999 |
€23,565 |
€77,133 |
30.6% |
|
2000 |
€27,072 |
€90,287 |
30.0% |
|
2001 |
€27,925 |
€98,668 |
28.3% |
|
2002 |
€29,294 |
€107,182 |
27.3% |
|
2003 |
€32,103 |
€119,103 |
27.0% |
|
2004 |
€35,581 |
€127,316 |
27.9% |
|
2005 |
€39,254 |
€138,776 |
28.3% |
|
2006 |
€45,539 |
€154,465 |
29.5% |
|
2007 |
€47,249 |
€162,209 |
29.1% |
|
2008 |
€40,777 |
€153,565 |
26.6% |
|
2009 |
€33,043 |
€132,911 |
24.9% |
|
2010 |
€31,753 |
€130,202 |
24.4% |
|
2011 |
€34,027 |
€127,016 * |
26.8% |
|
2012 |
€36,646** |
€130,850 *** |
28.0% |
Rounding may affect totals
*2011 GNP figure is based on a preliminary outturn
**2012 Tax outturn are provisional unaudited figures
***2012 GNP figure is taken from Budget 2013 forecasts
204. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a list of the bodies, other than statutory bodies, that were fully funded by his Department in 2012; and if he will make a statement on the matter. [1905/13]
View answer224. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a list of the bodies, other than statutory bodies, that were partially funded by his Department in 2012; and if he will make a statement on the matter. [2036/13]
View answerI propose to take Questions Nos. 204 and 224 together.
In response to the Deputy’s questions the details of bodies of other than statutory bodies that were fully or partially funded by my Department in 2012 are as follows:
The Credit Union Restructuring Board operated on an administrative basis under the Department of Finance in 2012 pending its establishment as a statutory body on 1 January 2013. My Department also covers travel and other expenses of the Credit Union Advisory Committee, (CUAC).
The Irish Fiscal Advisory Council (IFAC) was fully funded from the Vote of the Minister for Finance in 2012 receiving funding of €408,920. IFAC was made a statutory body on 31 December 2012.
205. Deputy Kevin Humphreys asked the Minister for Finance if Irish Life returned a dividend to the State in 2012; if he will indicate if the company was profitable in that time; if he expects to receive a dividend in 2013; and if he will make a statement on the matter. [1915/13]
View answerThe State acquired Irish Life on 30 June 2012 and since that time has not received a dividend. Irish Life announced their interim results for H1 2012 on 19 Sep 2012, a copy of which is available at http://www.irishlifegroup.ie/financial-information/annual-and-interim-reports/2012.aspx. For the six month period ended 30 June 2012 the company reported a profit before tax of €96m on an IFRS basis and €84 million after tax. Results for the full year 2012 will become available by the end of March or the start of April. Any potential dividend to be paid by Irish Life in 2013 will be determined only following the completion of the 2012 audit and will in any event be subject to the approval of the board and the regulator.
206. Deputy Kevin Humphreys asked the Minister for Finance if, in respect of Allied Irish Bank, he will outline the amount of public money invested by the State in the bank since 2008; the fees paid by the bank for the various deposit guarantees since then; the other sums paid by the bank to the State for repurchase of warrants and any other fees; the preference share and contingent capital holding and the coupon rate; the amount that has been paid so far and the amount to be paid in future; and if he will make a statement on the matter. [1916/13]
View answerI can inform the Deputy that the table details the amount of public money invested and sums paid by Allied Irish Bank since 2008.
|
Cash invested by the State |
- |
€ billion |
|
Government Preference Shares - NPRF |
3.5 |
|
|
Contingent Convertible Capital Notes |
1.6 |
|
|
Capital - NPRF |
12.5 |
|
|
Capital - Exchequer |
2.3 |
|
|
Capital contributions (Promissory Notes /Special Investment Shares) - Exchequer |
0.9 |
|
|
Total |
20.7 |
|
|
Fee Type |
Note |
€ billion |
|
Guarantee Fees (both ELG and CIFS) |
1 |
1.3 |
|
Interest on Contingent Convertible Capital notes |
0.16 |
|
|
Re-purchase of AIB Warrants |
2 |
0.05 |
|
Total |
1.5 |
Notes:
1) 2012 Exceptional Guarantee fees are the fees paid up to 31/12/2012 and excludes €1.2 million in legal and admin costs.
2) AIB’s warrants were cancelled on 23 December 2010 for consideration of €52.5m paid to the NPRF.
3) The recharge of legal costs of €6.1m received from AIB are excluded from the above table.
AIB’s €1.6bn of Contingent Convertible capital notes were issued on 26 July 2011 for a period of 5 years. These notes will convert or be exchanged into ordinary shares if either a Capital Deficiency or a Non-Viability event occurs as defined in the terms and conditions of the Contingent Convertible capital notes. These instruments carry a coupon of 10% or €160m per annum over the instrument’s life.
The 2009 Preference Shares pay a dividend at a rate of 8% per annum, payable annually in arrears at the discretion of AIB. Based on the nominal amount of €3.5bn of these shares currently outstanding, this equates to a dividend of €280m per annum.
If a cash dividend is not paid, AIB must issue bonus ordinary shares to the holders of the 2009 Preference Shares by capitalising its reserves. The State has never received a cash dividend on these instruments, with the Bank having to-date elected to issue bonus shares.
As the form of dividend to be paid on the 2009 Preference Shares is at the discretion of the Bank, I am not in a position to speculate on future payments.
207. Deputy Kevin Humphreys asked the Minister for Finance if, in respect of Permanent TSB, he will outline the amount of public money invested by the State in the bank since 2008 and the fees paid by the bank for the various deposit guarantees since then; the other sums paid by the bank to the State for repurchase of warrants and any other fees; the preference share and contingent capital holding and the coupon rate; the amount that has been paid so far and the amount to be paid; and if he will make a statement on the matter. [1917/13]
View answerI can inform the Deputy that in total Permanent TSB received €4 billion of public money since 2008. This is made up of €2.7 billion invested in July 2011 - €2.3 billion invested in ordinary shares and €0.4 billion invested in contingent convertible capital notes - and €1.3 billion for the purchase of Irish Life in June 2012. The fees paid by Permanent TSB since 2008 are shown in the following table:
|
Cash invested by the State |
- |
€ million |
|
Ordinary Shares |
2,300 |
|
|
Contingent Convertible Capital Notes |
400 |
|
|
Purchase of Irish Life |
1,300 |
|
|
Total |
4,000 |
|
|
Fee Type |
Note |
€ million |
|
Guarantee Fees (both ELG and CIFS) |
1 |
484.20 |
|
Commissions |
2 |
46.25 |
|
Interest on Contingent Convertible Capital notes |
3 |
40.00 |
|
Total |
570.45 |
Notes
1. Fees for the CIFS Scheme (30 September 2008 to 29 September 2010) amounted in total to €50.2 million. Fees for the ELG Scheme (for periods Q1 2010 to Q4 2012 inclusive) amounted in total to €434 million.
2. Commissions of €46.25 million were paid to the Exchequer in relation to the July 2011 recapitalisation. Commission of 1.5% (€6 million) was charged on the investment in the Contingent Convertible Capital notes and commission of 1.75% (€40.25 million) was paid in respect of the ordinary share investment.
3. €40 million of interest was paid to the State in July 2012 in respect of interest on the Contingent Convertible Capital notes. The coupon on the €400 million of Contingent Convertible Capital notes is 10%.
Permanent TSB is invoiced periodically in respect of administration and legal costs associated with implementation of both bank guarantee schemes (the original CIFS Scheme and later ELG Scheme). These fees, amounting to €0.9 million to date, are not included in the table above.
Permanent TSB has also been recharged in respect of financial and legal costs incurred by the NTMA in respect of the recapitalisation. To date €3.4 million has been invoiced by the NTMA to Permanent TSB and these fees are not included in the table above.
The State has not held any Preference Shares in Permanent TSB or warrants to purchase Permanent TSB shares as part of the recapitalisation of the banking sector.
The State owns 100% of Irish Life which will be sold in due course.
209. Deputy Kevin Humphreys asked the Minister for Finance the investments that were made by the Strategic Investment Fund in 2012 and in what sectors; the amount invested; the amount of matching funds raised from private sources; the plans for investment in 2013; and if he will make a statement on the matter. [1919/13]
View answerI am advised by the National Treasury Management Agency (NTMA) as manager of the NPRF that it has not been possible to compile the information requested by the Deputy in the time available. However, I will be in contact with the Deputy when the information has been compiled.
210. Deputy Kevin Humphreys asked the Minister for Finance if the General Government Deficit is projected to be below 8% following the publication of the December Exchequer returns; if he will confirm what the finalised GGD for 2012 was; the expected GGD at end of 2013 following these developments and the full implementation of policy changes announced in Budget 2013; if it will be below 7.5% if all targets are met as projected; and if he will make a statement on the matter. [1920/13]
View answerBudget 2013 contained a forecast General Government Balance (Deficit) of -8.2% of GDP which was based on the most up to date information available at the end of November. In light of the better than expected Exchequer returns for December 2012, it is now reasonable to expect that the General Government Balance (GGB) for 2012 will be under -8% of GDP. However, the first official estimate of the final GGB will be made by the Central Statistics Office in the Maastricht Returns at the end of March and will be published by Eurostat in mid to late April.
The Budget forecast General Government Balance for 2013 is -7.5% of GDP. My Department’s Stability Programme Update, which will be released in April, will contain an updated forecast for the General Government Balance for 2013. This will take the latest information into account, including any relevant effects of the official GGB for 2012 returned by the CSO.
211. Deputy Kevin Humphreys asked the Minister for Finance if he will confirm that the high earners restriction of specified tax reliefs still applied to charitable donations; if, following his statement on budget day, he will outline specifically the proposals he wants the Joint Oireachtas Committee on Finance, Public Expenditure and Reform to consider on philanthropic donations; and if he will make a statement on the matter. [1921/13]
View answerFollowing a public consultation on proposed changes to the scheme of tax relief for donations to approved bodies, I announced the following changes in the recent Budget:
i. Donations from all individual donors under the scheme will be treated in the same manner, with the tax relief in all cases being repaid to the charity.
ii. A blended rate of relief of 31% will apply to all taxpayers regardless of their marginal tax rate. All donations will be grossed up as is currently done for donations from individuals within the PAYE collection system.
iii. The charitable donations scheme will be removed from the scope of the high earners’ restriction in recognition of the fact that donors will no longer benefit from the tax relief associated with their donations.
iv. An annual donation limit of €1 million per individual, for which a refund of income tax can be claimed by approved bodies.
Full details of the changes will be contained in the upcoming Finance Bill.
In relation to the Joint Oireachtas Committee on Finance, Public Expenditure and Reform, I will be asking the Committee to consider the suggestions put forward in "Extending the Immigrant Investor Scheme: A Proposal".
212. Deputy Kevin Humphreys asked the Minister for Finance if he will provide an explanation for the expenditure of €26,709,000 on Central Bank - Coin Issue under Note 5 Non-Voted Current Expenditure in the December Exchequer Statement; and if he will make a statement on the matter. [1922/13]
View answerThe Central Bank produces euro coins to meet the demands of public and businesses. Traditionally, the Central Bank retained the proceeds from the issue of coin in its currency reserve. In the light of the introduction of euro coin from 1 January 2002, and to bring the position into line with general practice in other EU Member States, legislation was passed in March 2002 (Section 137 of the Finance Act 2002) to permit the proceeds from the issue of coin to be transferred directly to the Exchequer every year.
Section 14(A) of the Economic and Monetary Union Act 1998 requires that, should the proceeds of the issue of coin be less than the cost of producing it, the Minister for Finance must make up the deficit to the Bank from the Exchequer.
Section 14(4) holds that if the currency reserve account is at any time unable to meet outstanding debits “then the Minister shall advance to the general fund of the Central Bank of Ireland from the Central Fund or the growing produce thereof an amount at least equal to the amount which stands to be defrayed from the general fund of the Central Bank of Ireland less the amount standing to the credit of the currency reserve in respect of the accrued public moneys arising from the issue of coin and the Central Bank of Ireland shall credit the currency reserve by this amount”.
The payment of €26,709,000 to the Central Bank in December 2012 addressed the deficit from the issue of coin in 2012 which was due to a significant return of coin to the Central Bank from the commercial banks.
Payments to the Central Bank from the Exchequer to make up the deficits arising from the production of coin were made in 2009 (€30 million) and 2010 (€8.5 million).
Receipts from the Central Bank to the Exchequer as a result of the production of coin were made in 2003 (€78.2 million), 2004 (€42.7 million), 2005 (€45.4 million), 2006 (€39.5 million), 2007 (€59.1 million), 2008 (€30 million) and 2011 (€20.7 million).
213. Deputy Kevin Humphreys asked the Minister for Finance if he will provide, in tabular form, the contribution to the EU Budget from 2006 to 2012; if he will outline the sources of those revenue under specific legislation and the reason for annual increases; the expected cost in 2013; and if he will make a statement on the matter. [1923/13]
View answerIreland’s contribution to the EU Budget for the years 2006 – 2013 is detailed in the table.
Payments to the European Union (€m)
|
- |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 (e) |
|
Total |
1,529 |
1,570 |
1,586 |
1,486 |
1,352 |
1,349 |
1,393 |
1,450 |
Article 311 of the Treaty of Lisbon sets out the legal arrangements for funding the EU Budget. The basic legislation is laid down periodically in a Council Decision, currently 2007/436/EC, which is adopted unanimously and ratified by every member state.
The budget of the EU is mainly financed by own resources contributions from each member state. These comprise ‘traditional own resources’ – principally customs duties collected on behalf of the EU, with 75% of the amount collected paid over to the EU and the balance retained by the member state to fund the costs of collection and administration; a VAT-related payment under which an agreed percentage is levied on a harmonised VAT base for each member state and finally a payment based on a percentage of each member state’s Gross National Income (GNI). Corrections or rebates to a number of member states are also factored into the calculation of contributions.
The annual level of Ireland’s contribution to the EU Budget, made up of the three elements mentioned above, is determined by the outcome of the annual EU Budget negotiation between Council and the European Parliament. The most important component is the GNI resource which, in 2012, represented over 70% of our total contribution.
For 2013 it is currently estimated that our total own resource contribution will be in the order of €1,450 million although this will depend on a number of factors including actual budget implementation.
1 Gross national income (GNI) is equal to GNP adjusted for EU subsidies and taxes.
214. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a breakdown of the source of the €30,496,000 of Miscellaneous Capital Receipts as listed in Note 3 - Capital Receipts of the December Exchequer Statement; and if he will make a statement on the matter. [1924/13]
View answerThe breakdown of the €30.5 million Miscellaneous Capital Receipts recorded in the December 2012 Exchequer statement is set out in the table. Please note that these are provisional unaudited figures.
|
Account |
GL Description |
Date |
Total |
|
Min. Finance Capital Receipts |
Receipt from IBRC |
19 April 2012 |
€1.00 |
|
Finance Act 1978 |
Finance Acts 1978 & 1990 |
27 April 2012 |
€20,241.55 |
|
OPW Capital Receipts |
Sale of Garda Stations |
12 November 2012 |
€140,000.00 |
|
EHLG Capital Receipts |
Refund of Grants |
10 January 2012 |
€338,364.00 |
|
Redemption Morrg 20/21 Herb St |
29 August 2012 |
€31,865.06 |
|
|
Redemp of Mortgage Curraheen Rd |
26 November 2012 |
€93,382.73 |
|
|
Education Capital Receipts |
FAS Sale of Assets - ICT Equi |
29 June 2012 |
€961.73 |
|
F.Affairs Capital Receipts |
Sale of Building in Brussels |
29 August 2012 |
€2,134,000.00 |
|
CMNR Capital Receipts |
SEAI Refund of Grant |
20 December 2012 |
€9,877.00 |
|
Agric & Food Capital Receipts |
Correct Misposting |
22 February 2012 |
€9,505.89 |
|
Sale of Cold Store Ballytarsna |
27 June 2012 |
€225,378.00 |
|
|
Sale of House |
26 November 2012 |
€20,000.00 |
|
|
Transport Capital Receipts |
Disposable of Vehicles by CIE |
28 March 2012 |
€633,430.00 |
|
ET&E Capital Receipts |
Sale Van |
10 February 2012 |
€25,436.00 |
|
Rcpt- CEB Grant Asst. |
28 March 2012 |
€115,408.00 |
|
|
Enter.Ire iro excess Own Reso. |
27 April 2012 |
€14,934,391.00 |
|
|
Enterprise Ire Excess ORI 2011 |
30 July 2012 |
€1,725,617.02 |
|
|
CEBs decommitals of Grant offe |
12 October 2012 |
€192,482.90 |
|
|
Excess own Resource income |
26 November 2012 |
€6,390,000.00 |
|
|
Excess own Resource income |
20 December 2012 |
€3,456,000.00 |
|
|
AST Capital Receipts |
Sale Of Laptop |
12 July 2012 |
€40.00 |
|
Total |
€30,496,381.88 |
215. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a breakdown of the €250,384,000 of Customs receipts as listed in the December Exchequer Statement; if all of that is remitted to the EU; and if he will make a statement on the matter. [1925/13]
View answerIt is not possible to provide a breakdown of the customs receipts of €250,384,000 as listed in the December Exchequer statement. Customs are considered an Own Resource of the European Union. Approximately 25% of the customs receipts are retained by the relevant Member State as a "payment" for the collection cost with the balance paid to the EU to fund the EU budget.
216. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a breakdown by excise duty source of the €4.7 billion yield as listed in the December Exchequer Statement; and if he will make a statement on the matter. [1926/13]
View answerThe €4.7 billion yield as listed in the December Exchequer Statement is made up of the following commodities.
Cumulative Receipts
|
Commodity |
2012 €m |
|
Beer |
308.4 |
|
Spirits |
261.3 |
|
Wine |
225.2 |
|
Cider |
42.6 |
|
Tobacco |
945.0 |
|
Light Oils |
906.3 |
|
Other Oils |
1126.7 |
|
Carbon |
354.0 |
|
VRT |
379.1 |
|
Other Excise |
80.0 |
|
Motor Tax |
46.5 |
|
Total Excise |
4675.0 |
The above figures are provisional.
217. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a breakdown in tabular form of the specific source such as residential property, commercial property etcetera, of the €1,428 billion yield of stamps as listed in the December Exchequer Statement; if he will provide that along with the individual yields from 2011; and if he will make a statement on the matter. [1927/13]
View answerThe only available breakdown of Stamp Duty Receipts is on a Revenue Net Receipts basis, rather than on an Exchequer Receipts basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing. I ask the Deputy to note the figures are provisional and subject to revision.
|
Description |
2011 (€m) |
2012 (€m) |
|
Property: |
134.54 |
105.41 |
|
Residential |
44.48 |
56.9 |
|
Non-Residential |
90.06 |
48.51 |
|
Shares |
194.76 |
171.78 |
|
Companies Capital Duty |
0.15 |
0.06 |
|
Cheques |
33.23 |
30.97 |
|
Insurance Policies |
2.54 |
1.83 |
|
General Deeds |
0.07 |
0 |
|
Penalties |
0.1 |
0.25 |
|
Credit Cards |
51.8 |
51.64 |
|
Bank Levy |
0 |
0 |
|
Non-Life Levy |
106.4 |
104.16 |
|
Life Assurance Levy |
31.6 |
24.12 |
|
ATM Cards |
1.5 |
1 |
|
Debit Cards |
0.03 |
0.03 |
|
Combined Cards |
15.7 |
15.51 |
|
Health Insurance Levy |
346.97 |
436.77 |
|
Pension Levy |
463.23 |
482.88 |
|
TOTAL |
1382.62 |
1426.41 |
