Written Answers Nos. 51-58
51. Deputy Pearse Doherty asked the Minister for Finance if he will provide a breakdown of where the 26,000 employed in aviation according to the jobs action plan work that is airport workers, manufacturing, leasing and so on. [13164/13]
View answerThe Department of Transport, Tourism and Sport have advised my Department that the Action Plan for Jobs 2013 refers to a report by Oxford Economics which quotes an estimate of 26,000 directly employed in the air transport industry in Ireland. That report provides a limited breakdown of this figure stating that airlines registered in Ireland directly employ 10,000 people and that aviation ground-based infrastructure employs 16,000 people. (The report categorises ground-based infrastructure as including facilities serving passengers such as baggage handling, ticketing, retail and catering, air navigation, etc).
As Minister for Finance I fully support initiatives to support the aviation sector. The Deputy may be aware that as part of the Government approach to the aviation sector, my Department have committed to conducting a review of the tax code to establish the feasibility of providing tax incentives for specific forms of aircraft financing, for example, enhanced equipment trust certificates.
In addition, officials from my Department are active members of the Shannon Aviation Business Development Task Force which is reviewing the potential of the aviation sector in Ireland.
52. Deputy Pearse Doherty asked the Minister for Finance the number of times he or his representatives have met with representatives of the aviation industry or aviation leasing industry since March 2011. [13165/13]
View answerAs Minister for Finance, I and officials from my Department meet with a large number of representatives of all industry sectors including representatives of the aviation industry and the aviation leasing industry.
I meet with industry representatives directly, on the margins of engagements and functions and at the request of the IDA. For example, I have met with representatives of both Ryanair, Aer Lingus and Transaero, the Chair of Shannon Airport and I opened the new offices of Avolon in January of last year. In October of last year I attended the launch of SMBC Aviation Capital, a subsidiary of the Sumitomo Bank.
53. Deputy Maureen O'Sullivan asked the Minister for Finance in view of the fact that the universal social charge was introduced in budget 2011 to replace the income levy and health levy, the reason for both these levies and if this reason or purpose changed with the amalgamation and change of name in budget 2011; and if he will make a statement on the matter. [13227/13]
View answerThe position is that Universal Social Charge (USC) was introduced in Budget 2011 to replace the Income Levy and Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit. I should point out that the Health Levy was introduced in the Health Contributions Act, 1979 and was payable on all reckonable income and subject to certain exemptions. The Health Levy was collected along with PRSI contributions by the Revenue Commissioners. Under the legislation, it was paid into the Social Insurance Fund and transferred from there to the Minister for Health, where it was appropriated to the Health Vote as an appropriation-in-aid.
The Income Levy was introduced along with a suite of revenue raising measures in Budget 2009 in response to the economic downturn in order to assist in stabilising the country finances.
Payment of the Health Levy and the Income levy did not confer any entitlement or specific benefits to an individual. However, individuals in general do benefit from the services provided by the State.
Likewise, individuals that are subject to the USC charge do not accumulate entitlements or specific benefits.
54. Deputy Olivia Mitchell asked the Minister for Finance if refunds will be paid to homeowners where it comes to light that an overpayment of property tax was paid in any year; and if he will make a statement on the matter. [13236/13]
View answerI am informed by the Revenue Commissioners that Local Property Tax (LPT) is a self-assessed tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. For the purposes of LPT, property values for properties under €1 million are organised into valuation bands, with a range of €50,000 in each band. As property owners will not be required to provide a precise value for their property, it is unlikely that any owner would find themselves in the position where they overpay their LPT. The initial valuation of a property on 1 May 2013, assuming it is made in good faith, will be valid up to and including 2016 and will not be affected by any increase or decrease in property prices or other changes, during this period. Notwithstanding this, I am advised by the Commissioners that section 26 of the 2012 Act provides for a refund to issue where it transpires that there has been an overpayment of LPT either directly or by deduction at source, or where, the overpayment was due to an error or mistake on a return or a statement made by the liable person, subject to certain conditions being satisfied. Where a true and complete return has been prepared and delivered to the Revenue Commissioners and all the information required by the Commissioners to make a determination on the case has been provided, a refund may issue where a claim for repayment is submitted to Revenue within four years after the end of the year in which the liability date in respect of the payment was made falls. For example, if a liable person elects on the LPT Return to pay the 2013 LPT liability by deduction at source from his or her salary, but their spouse subsequently pays part of the liability by cash, this would result in an overpayment of LPT for 2013. In order to receive a refund, the liable person must submit a claim for repayment of the LPT to Revenue by the end of 2017 and provide the necessary information to support the claim. It should be noted that a refund of tax will only be made where the taxpayer has no other outstanding tax liabilities.
I am further advised by Revenue that the legislation also allows a liable person to appeal against a decision of the Revenue Commissioners not to allow a repayment.
55. Deputy Olivia Mitchell asked the Minister for Finance if the date on which the property tax for 2014 becomes payable is January 2014; and if he will make a statement on the matter. [13237/13]
View answerSection 119 of the Finance (Local Property Tax) Act 2012 sets out the dates for payment of the Local Property Tax (LPT). The Finance (Local Property Tax) (Amendment) Bill 2013 clarifies that while the LPT is due by reference to a liability date it is not payable until a later date. In relation to 2014, the tax is payable on 1 January 2014.
I am advised by the Revenue Commissioners that a payable date of 1 January is necessary to enable phased payments by way of deduction at source from employment or occupational pension income or from certain payments from the Department of Social Protection and the Department of Agriculture, Food and the Marine to be spread evenly over the course of 2014. Payments made through service providers by way of cash, debit card or credit card can be paid in full or can run from 1 January 2014 to the end of 2014 on a weekly or monthly basis as it suits the residential property owner. Payments made by direct debit will commence on 15 January 2014 and will be deducted on the 15th day of each month thereafter. Payment of the full amount of LPT due by way of Single Debit Authority will be deducted from the nominated bank account on 21 March 2014.
56. Deputy Gerald Nash asked the Minister for Finance if his Department has been consulted in relation to plans announced by Allied Irish Bank to outsource IT positions to an Indian company (details supplied); if his Department has signed off on such an agreement with the bank; and if he will make a statement on the matter. [13299/13]
View answerI have been informed by AIB that the bank is seeking to deliver a better technology offering for customers as it attempts to return to profitability over time. The decision to partner with a company (details supplied) has been taken as part of the overall strategy of introducing new productivity tools on the most commercial terms. The Department of Finance were informed of AIB’s decision to partner with the company referred to on 27 February 2013. Under the terms of the Relationship Framework in respect of the relationship between the Minister for Finance and AIB, this would be considered a commercial matter and therefore not require prior ministerial approval.
57. Deputy Olivia Mitchell asked the Minister for Finance if he will ensure the Irish bank Resolution Corporation liquidator meets with staff to discuss their issues as repeated cancellations of such meetings is causing real concern; and if he will make a statement on the matter. [13300/13]
View answerI am informed by the Special Liquidators that there is on-going communication between them and the staff of IBRC to discuss their issues.
In relation to meetings between the Special Liquidators and the IBOA, I have been advised that the Special Liquidators met with the IBOA on Monday 11 March 2013.The Special Liquidators have informed me that this was the earliest possible date following the unavoidable postponement of the previously arranged meeting of Wednesday, 6 March 2013 and the IBOA’s unavailability on Thursday and Friday, 7 and 8 March 2013. The Special Liquidators have advised that they continue to engage with the IBOA.
58. Deputy Mattie McGrath asked the Minister for Finance if he plans to extend the fuel rebate recently amended in Finance Bill 2013 to include road hauliers and coach companies to the Association of Farm Contractors in Ireland; and if he will make a statement on the matter. [13374/13]
View answerContractors using machinery in the course of farming work are entitled to use Marked Gas Oil (MGO). The current excise duty including the carbon charge on MGO is 10.23 cents per litre, this compares to 47.9 cents per litre in respect of auto-diesel. In terms of VAT, the reduced VAT rate of 13.5% applies to MGO and the standard VAT rate of 23% applies to auto-diesel. MGO is therefore taxed more favourably compared to auto-diesel. I will not be introducing a tax rebate for users of MGO.
