Written Answers Nos. 85-92
85. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which Irish aid continues to be made available to the most sensitive locations worldwide with particular reference to the need that aid continues to reach those for whom it was intended and that aid workers are adequately protected during the course of their work with no exceptions; and if he will make a statement on the matter. [15938/13]
View answerAs Minister of State with responsibility for Ireland’s Official Development Assistance, I am very conscious of the need to ensure that Irish Aid continues to reach its intended beneficiaries in the most sensitive and difficult regions of the world, and that our development assistance continues to make a real difference in the lives of the poorest and most vulnerable.
Through our emergency humanitarian budget, we respond quickly and effectively to emergencies arising from man-made crises as well as the effects of natural disasters, with a particular focus on protracted and complex emergencies. We also work to ensure that countries affected by repeated crises are provided with support to prepare for, and reduce the impacts of, disasters. In 2012, Ireland provided over €100 million to support those in need of humanitarian assistance across the globe. This helped millions of people to survive through conflicts and through natural and man-made disasters.
To ensure that this assistance is effectively programmed to be delivered to those most in need, we work in partnership with national governments, local communities, NGOs, and key multilateral partners such as the United Nations and European Union. These programmes and agencies which are in receipt of our funding are subject to strong appraisal and regular internal and external monitoring to ensure that the intended objectives and goals are being achieved.
I am also aware that Irish-based aid agencies and their partners operate in some of the most sensitive and insecure locations in the world. The Government strongly supports and promotes the efforts taken by many of these organisations to develop solid security management plans and to employ dedicated security professionals to help train staff and ensure that they are adequately protected during the course of their work.
We are also continuing to work with the members and observers of the Dóchas Humanitarian Aid Working Group to develop a series of overarching professional standards for Irish aid organisations with respect to safety and security issues.
I would like to take this opportunity again to recognise the heroic role played by the many thousands of Irish aid workers and their colleagues around the globe who are striving to save lives and to deliver humanitarian help to those who need it most, often under the most sensitive and trying circumstances.
86. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade his objectives for improvement in the volume of trade with various countries throughout Europe and worldwide with particular reference to the development of new markets and alliances; if he envisages new trade agreements in the current year; and if he will make a statement on the matter. [15939/13]
View answerIn 2012, the total value of merchandise exports was €92 billion, representing an increase of 1% on the 2011 figure (€91 billion), while services exports for 2012 reached €90 billion, an increase of 10.7% on the 2011 figure (€81 billion). Overall, Irish exports reached their highest level ever in 2012. Merchandise exports to Europe increased by 3.2% in 2012, with notable growth in exports to Switzerland (37.5%), Germany (19.7%), Denmark (11.6%), Poland (11%), Great Britain (7.3%), Netherlands (7.1%) and Belgium (2.4%). Outside of European markets, there was significant growth in merchandise exports to, inter alia, Canada (24.5%), Mexico (24%), Saudi Arabia (20.1%), Japan (20.5%), Russia (19.1%) and India (15%).
As the Deputy is aware, the Government Trade Strategy identifies 27 priority markets, including those with the best prospects for increased trade. Local market teams headed by our Ambassadors are in place in these markets and their work is overseen by the high level Export Trade Council, which I chair. My Department and Ireland’s Embassy network will continue to prioritise our work to support the growth of Irish exports. This year eighteen Ministerial-led Enterprise Ireland trade missions will take place to a variety of countries which have been identified as priority markets for Irish exporting companies in close co-operation with each of our relevant Embassies. I look forward to leading one of these missions myself to Turkey from 7 – 10 April 2013.
Competence for the EU's common commercial policy, which includes the negotiation of international trade agreements, lies with the European Union, and as a matter of Ireland's trade policy, comes within the remit of the Minister for Jobs, Enterprise, and Innovation, Mr Richard Bruton, T.D. As I understand it, the negotiations with Canada and with India could conclude in the short term, the prospects of concluding negotiations with Georgia, Moldova and Armenia are promising, the negotiations with Japan are set to begin in April, and negotiations with the US could begin as soon as the EU Council of Ministers adopts the mandate for negotiations, which we hope can be achieved under the Irish Presidency of the EU. I am keenly aware of the opportunities presented by EU Free Trade Agreements for Irish business and in this regard will continue to work closely with my Government colleague Minister Bruton in the framework of the Export Trade Council.
87. Deputy Finian McGrath asked the Minister for Finance the position regarding deferral of property tax payment in respect of a person (details supplied). [15798/13]
View answerI am informed by the Revenue Commissioners that in the circumstances outlined a person whose only income is a State pension qualifies for a full deferral of LPT. The deferred tax remains a charge on the property until the property is sold or transferred to another person. Interest will be charged on deferred amounts from the due date of payment until such time as it is paid. The daily rate of interest will be 0.011%, which equates to a rate of 4% per annum. The deferred amount, including interest, will be a charge on the property and will have to be paid to Revenue on the sale/transfer of the property. If the property is valued between €250,000 and €300,000 the liability for LPT for 2013 is €247 and if this amount was deferred for a full year would attract an interest charge of €10. The total charge as a result of deferral is dependent on the total LPT liability and the length of time of the deferral.
As an alternative to deferral the person may opt to have it deducted at source from the pension at just under €10 a week or the amount may be paid through any of the other payment methods by a family member.
If the family member who raised the matter has any further questions s/he may contact the LPT helpline at 1890 200 255 or write to LPT Branch, P.O. Box 1, Limerick.
88. Deputy Bernard J. Durkan asked the Minister for Finance the manner in which local property tax is payable by residents of voluntary housing associations; if the housing association or tenant is liable; and if he will make a statement on the matter. [15923/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and how a residential property is to be valued for LPT purposes. Section 7 of the Act provides that voluntary social housing bodies will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities. Special housing needs refers to the provision of housing and support for people who have a particular need in addition to a general housing need to enable them to live in the community. To avail of the exemption from LPT, the social housing provider must operate as a charity and must have a general tax exemption granted by the Revenue Commissioners.
I am advised by the Revenue Commissioners that they have had extensive contacts regarding the LPT obligations of social housing providers either directly with the providers themselves or indirectly through the Irish Council for Social Housing. Where a property owned by a provider of social housing is not exempt from the charge to LPT because it is not used to provide special needs accommodation, the Act provides that the market value of any such property will be deemed to fall into the lowest valuation band of zero to €100,000 up to and including 2016. This will result in an LPT charge of €45 per property for 2013 and €90 per year for 2014 to 2016. As the social housing body will be liable for the payment of LPT, it will be a matter for the bodies themselves to decide whether they will pass on the LPT liability to their tenants in the form of an increase in rent or whether they will absorb the liability without recourse to their tenants. In addition, the Act also gives social housing providers until 1 January 2014 to pay the 2013 tax.
I am also advised by the Revenue Commissioners that they have liaised with the social housing sector to establish how social housing bodies will provide them with information in relation to their LPT liability and the timing and manner of the payment of this liability. All social housing providers affiliated to the Irish Council for Social Housing have been contacted in this regard. Revenue is anxious to ensure that any social housing providers who have not already done so should contact it as soon as possible.
Furthermore, the Commissioners have also confirmed that in order to minimise the administration burden on these bodies, it is Revenue’s intention to require each social housing provider to complete and submit a single LPT Return in respect of all the residential properties it owns, rather than seeking a separate Return for each individual property.
89. Deputy Bernard J. Durkan asked the Minister for Finance the procedure to be followed by residents of local authority shared ownership mortgages in respect of the local property tax; if the local authority as co-owner of the property is liable for part of the tax; and if he will make a statement on the matter. [15924/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and provides that a liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date which will be 1 May 2013 for the year 2013 and, for subsequent years 1 November in the preceding year. Section 7 of the 2012 Act provides that local authorities will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities.
I am advised by the Revenue Commissioners, however, that residential properties purchased under the various local authority shared ownership schemes will also be subject to LPT and that the liable person in these instances will be the purchaser. This is on the basis that under these schemes, the purchaser acquires a leasehold interest in the property for a period that exceeds 20 years. Such a purchaser is in the same position as a property owner who purchases a residential property with a mortgage from a financial institution. Accordingly, there is no reason why such an individual should not be liable for payment of the LPT on the property.
As in the case of any other liable person, the LPT is based on the “chargeable value” of the property, which is the price which the unencumbered fee simple of the property might reasonably be expected to fetch on a sale in the open market were that property to be sold on the valuation date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the property.
I am informed by the Commissioners that LPT is a self-assessed tax. In the context of the question put by the Deputy, it is a matter for the person who is purchasing a local authority shared ownership residential property to calculate the tax due based on his or her assessment of the chargeable value of the property and to make a Return to Revenue. As part of the general issue of LPT Returns which commenced on 11th March 2013, liable persons will also receive a Guide to Local Property Tax, which provides detailed guidance on completing the Return.
90. Deputy Paschal Donohoe asked the Minister for Finance in view of the tax relief at source being reduced after seven years for first-time buyers and that the amount of relief available will be substantially reduced, if he will review the current monetary cap against which mortgage interest relief is awarded to first-time buyers; and if he will make a statement on the matter. [15756/13]
View answerThe position is that in Supplementary Budget 2009, mortgage interest relief was limited so that interest payable on a qualifying home loan would only qualify for tax relief for the first seven tax years of the life of that loan (7 year rule). However, in Finance Act 2010, mortgage interest relief was extended up to the end of 2017 for those whose entitlement to relief was due to end in 2010 or after (i.e. those who purchased in 2004 or after). Accordingly, individuals who took out qualifying loans in the period 2004 to 2012 will continue to be entitled to mortgage interest relief up until the end of 2017.
It should be noted that, where there is an entitlement to mortgage interest relief, it is available at varying rates and subject to certain ceilings. For example, individuals who are in the first seven tax years of their qualifying loan are entitled to a higher interest ceiling, on which the rate of relief is applied. For such individuals, the interest ceilings are €10,000 per annum for a single individual and €20,000 per annum for married couples and civil partnerships. For individuals who have an entitlement to mortgage interest relief and who are in their eighth or subsequent years of their qualifying loan a lower interest ceiling applies. For such individuals, the interest ceilings are €3,000 per annum for single and €6,000 per annum for married couples/civil partnerships. Therefore, some individuals will experience a reduction in the level of relief they receive as they enter into their eighth and subsequent years of their qualifying loans. However, they will continue to receive mortgage interest relief up until the end of 2017.
The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment. Mortgage interest relief is of lesser value to individuals whose repayments are made up of a higher proportion of principal than interest, as would generally be the case for those who moved in to the eighth and subsequent years of their loans.
Given the current budgetary constraints I have no plans to amend the scheme along the lines proposed.
As you will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. You will also appreciate that I must be mindful of the public finances and the many demands on the Exchequer.
91. Deputy Ciarán Lynch asked the Minister for Finance if he is satisfied with the performance of the public interest director who sits on the remuneration committee of the Bank of Ireland; if he is satisfied that it is appropriate to increase directors' fees in a loss-making bank in which the State has a 15% interest; and if he will make a statement on the matter. [15773/13]
View answerI can confirm to the Deputy that nothing has been brought to my attention to suggest that the public interest director, who sits on the Group Remuneration Committee of the Bank of Ireland, is not carrying out his functions as a director in an appropriate manner. In relation to directors’ fees, the Deputy may be aware that the total directors’ remuneration fell to €2,564k in 2012 from €3,351k in 2011, a decrease of 23%. Although individual director’s fees may have increased year-on-year, this can be for a variety of reasons including increased responsibilities arising from membership of main board sub-committees.
92. Deputy Ciarán Lynch asked the Minister for Finance his views on whether it is appropriate that the Governor of the Bank of Ireland, who receives a substantial salary for his part-time position is also retained as a consultant to the same bank; and if he will make a statement on the matter. [15774/13]
View answerI can confirm to the Deputy that the annual fee of €59,000 received by the current Governor of the Bank of Ireland, over and above his annual non-pensionable salary, relates to a consultancy arrangement with Bank of Ireland (UK) plc. The current Governor’s non-pensionable salary is at the same level as the previous Governor’s salary. The decision to engage the current Governor in this extra capacity is a commercial one at the discretion of the Bank.
