Written Answers Nos. 191-209
191. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Foreign Affairs and Trade if his attention has been drawn to the proposed displacement of the Masai tribes from their grazing lands in Tanzania; and if he raised concern with the UN that this appears to be proposed in order to accommodate unsustainable hunting tourism. [16883/13]
View answerThe issue of land rights for pastoralist communities in Tanzania such as the Maasai is complex. It is something I take very seriously. Our Embassy in Tanzania, working with other EU Member States and UN agencies, is closely monitoring the situation and continues to raise the need for all parties, including the Government and the local community, to deal with the issue through open dialogue and constructive engagement. Ireland has made a significant contribution to development and the fight against poverty in Tanzania. In the past decade, Tanzania has recorded improvements in human development, as measured by the UN Human Development Index. This progress, which has been made with Irish support and support from other donors, is a strong example of the success of international development assistance when delivered in partnership with a developing country Government. However, positive development results and respect for human rights must go hand in hand. Ireland remains strongly committed to helping build good governance and the rights of the most vulnerable in Tanzania and elsewhere, and this will remain a clear priority of our development assistance programme.
192. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade if and when a passport will issue in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [16904/13]
View answerA passport was issued to the person in question on 5 April 2013.
193. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if he and his Department have been liaising with the British Foreign and Commonwealth Office regarding the upcoming G8 Summit taking place in June 2013 in County Fermanagh in Northern Ireland; if they have requested any assistance or help with the event taking place; if any actions by his Department will be taken as a result of the summit occurring in Northern Ireland; if there are any costs involved with any operations; and if he will make a statement on the matter. [16945/13]
View answerContacts with British counterparts continue across a broad range of themes in advance of the G8 summit in Fermanagh, particularly in areas where the priorities for the Irish Presidency of the European Union overlap with the British Presidency of the G8, such as trade liberalisation and development co-operation. These contacts will continue and intensify in the months ahead. I am not in a position to comment on the issue of costs at this stage. However, I would not expect significant costs to arise for my Department directly in relation to the G8 summit.
194. Deputy Seán Kenny asked the Tánaiste and Minister for Foreign Affairs and Trade the reasons for the delay in granting a passport to a person (details supplied) in Dublin 5 who has been granted Irish citizenship. [17000/13]
View answerAll passport applications are subject to the provisions of the Passports Act 2008. The issue of a passport is, therefore, the culmination of an important and legally binding process. The checks and balances within the passport process embrace the standard principles that are provided for in the Act and help to ensure that the identity of the applicant is known and that the person in question is an Irish citizen. This serves to maintain the worldwide good reputation and integrity of the Irish passport, which, in turn, ensures the safe travel and well-being of Irish citizens as they travel abroad. Moreover, it helps to combat passport and identity fraud. These documents confirm the details of a person’s birth name, date of birth and place of birth, all of which are critical components of a person’s identity. These can also help to demonstrate a person’s entitlement to Irish citizenship and in the case of children, who their legal guardians are. These documents confirm the details of a person’s birth name, date and place of birth, all of which are critical components of a person’s identity. These can also help to demonstrate a person’s entitlement to Irish citizenship and in the case of children, who their legal guardians are. The Department received an application from the person in question on 14 September 2012. It could not be finalised because he did not provide his civil birth certificate or his passport from his country of birth. The Department wrote to him on 16 October 2012 requesting the necessary supporting document. There is no record of a reply.
195. Deputy Dominic Hannigan asked the Tánaiste and Minister for Foreign Affairs and Trade the current situation regarding Marian Price; and if he will make a statement on the matter. [17057/13]
View answerI am very aware of the case to which the Deputy refers. My officials continue to monitor the case closely. Genuine concerns have repeatedly been raised about several aspects of this case by Deputies. I have raised and will continue to raise these concerns very frankly with the British Government. The Parole Commissioners are currently still reviewing her case. I understand that hearings have not yet been completed. Their decision will issue in due course.
196. Deputy Seán Kenny asked the Tánaiste and Minister for Foreign Affairs and Trade the position regarding talks between the EU and Australia on a trade deal; and if he will make a statement on the matter. [17217/13]
View answerThe EU and Australia are currently negotiating a Framework Agreement as the basis for their political and economic dialogue. Negotiations on an EU-Australia Framework Agreement were launched in 2011. The fourth round of negotiations took place in Canberra on 26 and 27 July 2012. This round enabled a number of issues to be solved and agreement to be reached on several articles. The draft Framework Agreement deals with a range of political and economic issues and includes a specific chapter dedicated to co-operation on economic and trade matters. It is anticipated that negotiations may conclude by the end of 2013.
197. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade if he will meet the Colombian delegation visiting Dublin on 23 April in order to support the peace process in Colombia. [17484/13]
View answerI strongly support the Colombian peace process. I hope the negotiations that are under way will bring an end to the long conflict there, which has caused much suffering, and give the people of that country the peace and stability they deserve. As my schedule for that day does not allow me to meet this delegation, I have asked senior officials from my Department to meet them and report back fully to me.
198. Deputy Martin Heydon asked the Minister for Finance the reason there is a €1 charge per instalment for those who want to pay the property tax in instalments in An Post; and if he will make a statement on the matter. [16210/13]
View answer213. Deputy Michael Healy-Rae asked the Minister for Finance the reason a levy is being placed on property owners who are paying their property charges on a weekly basis and who have to pay €52 on top of the original charge; and if he will make a statement on the matter. [17678/13]
View answer234. Deputy Róisín Shortall asked the Minister for Finance if he will set out the detail and payment structure with regard to the payment of the local property tax by way of equal instalments; specifically if he will provide dates on which payments will be deducted and details of the amounts that will be deducted according to each valuation band; and if additional fees and charges will be levied on this charge as a result of property owners opting for this method of payment. [16216/13]
View answer320. Deputy Anthony Lawlor asked the Minister for Finance his views on whether it is fair that an individual who, due to budgetary constraints, opts to pay the local property tax on a weekly basis through a cash payment in the post office is faced with a €52 service provider charge per annum as a result of the €1 service charge per transaction imposed by An Post; the way in which this annual service charge be justified in view of the fact that An Post is a semi State body and the other two private operators accepting payments are charging substantially less; and if he will make a statement on the matter. [17170/13]
View answer359. Deputy Barry Cowen asked the Minister for Finance the charging mechanism and administrative costs of paying the property tax via instalments; and if he will make a statement on the matter. [17680/13]
View answer360. Deputy Barry Cowen asked the Minister for Finance the reoccurring administrative charges in any property tax payment methods; and if he will make a statement on the matter. [17681/13]
View answerI propose to take Questions Nos. 198, 213, 234, 320, 359 and 360 together.
Section 119 of the Finance (Local Property Tax) Act 2012 (as amended) provides that the Local Property Tax (LPT) for 2013 is not payable until 1 July 2013. The legislation also provides that property owners may choose to pay the tax for the current year in equal instalments over the period from 1 July 2013 to the end of December 2013. The three phased payment options are deduction at source, direct debit, and payment by cash, credit or debit card through one of the approved payment service providers. The Revenue Commissioners advise that where a phased payment option is chosen, there is no additional administration or interest charge imposed by Revenue. However, a transaction fee may be charged by financial institutions and by the service providers.
Instalment payments can be made by way of deduction at source from employment, occupational pension income or from certain payments made by the Departments of Social Protection and Agriculture, Food and the Marine. The frequency of LPT deductions will depend on the frequency of salary or other payments made to the property owner by their employer, pension provider or Government Department. There are no fees or charges associated with the deduction at source option. Monthly phased payments can also be made by way of direct debit from the property owner's current account in a bank and other financial institution including a credit union. In these cases, the direct debit deductions will commence on 15 July 2013 and will be deducted on the 15th day of each month thereafter up to 15 December 2013. Normal direct debit fees charged by financial institutions apply to these payments. Phased payments can also be made either in cash or by debit or credit card through one of the three approved payment service providers, which are An Post TaxPay, Payzone and Omnivend. The appointed service providers have extensive nationwide outlets. Payment of LPT can be made in full through these service providers or by phased payments on a weekly or monthly basis. Charges are imposed by payment service providers on a per transaction basis. I am advised that An Post levies a charge of €1 per transaction, while Omnivend charges a fee of 4% per transaction. I understand that Payzone will be introducing the following charges this week: 75 cent per transaction for payments up to €50, €1 per transaction for payments between €50.01 and €100 and €2 per transaction for payments over €100.
Concerns have been raised about customers who opt to pay LPT on a weekly basis through a cash payment in the post office being faced with transaction charges of €52 per annum as a result of the €1 service charge per transaction imposed by An Post. While the Revenue Commissioners require any payment service provider to satisfy certain terms and conditions in order to be approved to provide the service, it is solely a matter for each provider, including An Post, to determine the rate of any transactional charge that may apply in the provision of this service. As I have indicated earlier, an alternative method of paying LPT on a phased basis, cost-free, is for the property owner to opt to have the tax deducted at source from employment, occupational pension income or from certain payments made by the Departments of Social Protection and Agriculture, Food and the Marine.
The amount of each instalment payment that has to be made by the property owner will depend on the amount of LPT due that is associated with the particular valuation band that the owner's property falls within. It is also dependent on when the option is exercised. In this regard, to ensure the payment is spread over the full six months from July, paper returns should be filed on or before 7 May and online by 28 May. Otherwise, the amount collected in each instalment may be higher. The table that follows this reply sets out the weekly and monthly payments for 2013 for each valuation band, where a property is valued at less than €1 million and the returns are filed on time. The amounts shown are exclusive of any fees imposed by payment service providers and financial institutions. I am informed by the Revenue Commissioners that the payment method selected for 2013 will automatically apply for 2014 and subsequent years unless the property owner advises Revenue that he or she wished to select an alternative method. I am satisfied that the range of payment options provides a great amount of flexibility in paying the tax and will allow liable persons to choose the option that suits their own particular circumstances.
Details of the amount of LPT that will be deducted according to each valuation band
|
Valuation Band Number |
Valuation Band € |
Mid-point of Valuation Band € |
LPT in 2013 (half-year charge) € |
Monthly Payment € |
Weekly Payment € |
|
01 |
0 to 100,000 |
50,000 |
45 |
7.50 |
1.73 |
|
02 |
100,001 to 150,000 |
125,000 |
112 |
18.66 |
4.30 |
|
03 |
150,001 to 200,000 |
175,000 |
157 |
26.16 |
6.03 |
|
04 |
200,001 to 250,000 |
225,000 |
202 |
33.66 |
7.76 |
|
05 |
250,001 to 300,000 |
275,000 |
247 |
41.16 |
9.50 |
|
06 |
300,001 to 350,000 |
325,000 |
292 |
48.66 |
11.23 |
|
07 |
350,001 to 400,000 |
375,000 |
337 |
56.16 |
12.96 |
|
08 |
400,001 to 450,000 |
425,000 |
382 |
63.66 |
14.69 |
|
09 |
450,001 to 500,000 |
475,000 |
427 |
71.16 |
16.42 |
|
10 |
500,001 to 550,000 |
525,000 |
472 |
78.66 |
18.15 |
|
11 |
550,001 to 600,000 |
575,000 |
517 |
86.16 |
19.88 |
|
12 |
600,001 to 650,000 |
625,000 |
562 |
93.66 |
21.61 |
|
13 |
650,001 to 700,000 |
675,000 |
607 |
101.16 |
23.34 |
|
14 |
700,001 to 750,000 |
725,000 |
652 |
108.66 |
25.07 |
|
15 |
750,001 to 800,000 |
775,000 |
697 |
116.16 |
26.80 |
|
16 |
800,001 to 850,000 |
825,000 |
742 |
123.66 |
28.53 |
|
17 |
850,001 to 900,000 |
875,000 |
787 |
131.16 |
30.26 |
|
18 |
900,001 to 950,000 |
925,000 |
832 |
138.66 |
32.00 |
|
19 |
950,001 to 1,000,000 |
975,000 |
877 |
146.16 |
33.73 |
199. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide details agreed between the Troika and the previous Government in respect of the creation of a property tax including the amount that was forecast to be collected by the previous administration in the first year of a property tax planned by them; the total number of houses that they had expected to levy; and the average amount that they planned to levy as a result. [16276/13]
View answerThe EU-IMF Programme of Financial Support is subject to policy conditionality which is set out in programme documents - the Memorandum of Understanding on Specific Economic Policy Conditionality, the Memorandum of Economic and Financial Policies and the Technical Memorandum of Understanding. The conditionality in these documents is subject to continuing assessment by the Irish Authorities and the EU, IMF, ECB (the Troika) to ensure the board programme objectives are met. Such assessment is undertaken at the quarterly reviews. These review missions include discussions where programme commitments are updated and agreed after every mission. The introduction of a property tax has been a condition of the Programme since it was first negotiated in November 2010 and has remained a condition following subsequent reviews. All of the programme documents are available on my Department’s website. The original Memorandum of Understanding contained certain provisions regarding the safeguarding of the public finances. However, it did not make specific reference to the amount to be collected by way of property tax or to the number of houses expected to be covered. The Safeguarding Public Finances section of the document, which is available at www.finance.gov.ie/documents/publications/reports/2011/euimfrevised.pdf, stated:
21. To continue with the programme of fiscal consolidation, a comprehensive National Recovery Plan 2011-14 was approved by the Government and published on 24 November 2010. This Plan forms the basis for the 2011 budget consistent with fiscal consolidation measures amounting to €15 billion, a 9 percent of GDP budgetary correction over the period 2011–14. Having stabilised the deficit, albeit at a high level, the steps announced in the Plan will place the budget deficit-to-GDP ratio on a firm downward path. While the debt-to-GDP ratio will remain at high levels for the next few years, it is projected to decline thereafter, underpinning debt sustainability. We also propose to keep under review progress towards meeting the Stability and Growth Pact targets.
22. Budget 2011 which will include adjustment measures of €6 billion, will be submitted to Dáil Éireann for passage on 7 December (prior action). As set out in the National Recovery Plan, most of this adjustment will come from the expenditure side. The capital budget will be reduced, partly through greater value for money in our infrastructure procurements. On current expenditures, we are pursuing public service numbers reductions through natural attrition and voluntary schemes, adjustments in public service pensions, and further savings on social transfers (from reductions in working age payments, reductions in universal child benefit payments and other reforms). Protecting the socially vulnerable at a time of difficult economic adjustment remains a central policy goal. Current savings will also be realised from streamlining government programmes and through administrative efficiencies. Should these savings or the expected numbers reductions not materialise, we reserve the option to take further measures.
23. An income tax-led revenue package—sized at over €2 billion in a full year—will supplement the above expenditure measures in 2011. Over the past decade, the proportion of citizens exempt from income tax has risen to 45 percent and tax credits have doubled, resulting in a comparatively low burden of tax on ordinary incomes. This is no longer sustainable. Accordingly, we are widening the tax base, by lowering income tax bands and credits by 10 percent, and by reducing various pension-related tax reliefs. We are also taking action on other tax expenditures, and distortions arising from the existence of multiple levies.
24. To secure our fiscal targets, a number of fiscal measures have been identified for 2012–14. We will continue to rely on expenditure savings (€6.1 billion), led by current spending (€4.9 billion), as outlined in the National Recovery Plan. We are targeting further reductions in public sector numbers, social benefits and programme spending, and have anchored the prospective savings by publishing multi-year expenditure ceilings by Vote Group through 2014. We are also planning to move towards full cost-recovery in the provision of water services and ensuring a greater student contribution towards tertiary education, while ensuring that lower-income groups remain supported. In addition, we will accelerate the process of placing the pension systems on a path consistent with long-term sustainability of public finances. On the tax side, we will build on the base-broadening measures outlined above and establish a sound basis for sub-national finances through a new residential-property based site value tax. The Finance Bill 2012 will contain necessary provisions to bring into effect the already signalled VAT increases in 2013 and 2014.
25. We are preparing institutional reform of the budget system taking into account anticipated reforms of economic governance at the EU level. A reformed Budget Formation Process will be put in place. Furthermore, we will introduce a Fiscal Responsibility Law which will include provision for a medium-term expenditure framework with binding multiannual ceilings on expenditure in each area by end-July 2011 (structural benchmark). A Budget Advisory Council, to provide an independent assessment of the Government’s budgetary position and forecasts will also be introduced by end-June 2011 (structural benchmark). These important reforms will enhance fiscal credibility and anchor long-term debt sustainability.
200. Deputy Michael McCarthy asked the Minister for Finance the options open to a person (details supplied) in County Cork who has been unable to obtain their P45 from their former employer; and if he will make a statement on the matter. [16393/13]
View answerI am advised by the Revenue Commissioners that it is the responsibility of an employer to issue a P45 when an employee has ceased in employment. Part 1 of the P45 is given to Revenue to notify that the employment has ceased. Parts 2, 3 and 4 are given to the employee to avoid paying emergency tax in a new employment, to claim a refund of tax during unemployment, and/or to claim Social Welfare benefits. If an employee does not get a P45 when leaving, he or she should ask the employer for one and repeat the request if necessary. If the employer still fails to give the P45, the employee should notify his or her local Revenue office that he or she has failed, after several attempts, to get a P45 and Revenue will quickly take up the matter with the employer. The taxpayer in question contacted Revenue on 8 April 2013 regarding his failure to obtain a P45. The PAYE Compliance Unit, Cork North West District, Revenue House, Blackpool, Cork is now dealing with this matter. I understand that most such cases are resolved quickly following intervention by Revenue. Where the problem persists, an employer who fails to issue a P45 may be subject to civil penalties under section 987 of the Taxes Consolidation Act 1997 for breach of the PAYE regulations, or may be charged with a Revenue offence under section 1078 of the same Act for failing, without reasonable excuse, to issue a required certificate or notification.
201. Deputy Kevin Humphreys asked the Minister for Finance if a local authority will be liable to pay local property tax for the percentage of a residential property that it owns under the shared ownership scheme; and if he will make a statement on the matter. [16511/13]
View answer268. Deputy Kevin Humphreys asked the Minister for Finance if residents in shared ownership properties, which are part owned by local authorities, are subject to the local property tax; if he can clarify if the local authority is liable for the portion of the tax in proportion to it's percentage ownership of the property; and if he will make a statement on the matter. [16510/13]
View answer269. Deputy Kevin Humphreys asked the Minister for Finance the way in which the value of properties held in shared ownership with local authorities will be valued for the purposes of the local property tax; if the portion that is owned by the local authority will be subject to the same rules that apply to social housing; and if he will make a statement on the matter. [16512/13]
View answerI propose to take Questions Nos. 201, 268 and 269 together.
Section 7 of the Finance (Local Property Tax) Act 2012 (as amended) provides that local authorities will be liable to pay the Local Property Tax (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 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 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 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. As LPT is a self-assessed tax, it is a matter for the purchaser of the property under the shared ownership scheme to determine the appropriate valuation band for their residential property.
202. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding local property tax. [16586/13]
View answer366. Deputy Finian McGrath asked the Minister for Finance if he will respond to the issue raised by the resident association concerning the property tax for the Marino area of Dublin (details supplied). [17707/13]
View answerI propose to take Questions Nos. 202 and 366 together.
The Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered, how a residential property is to be valued for Local Property Tax (LPT) purposes and provides for the making of a Revenue Estimate. I am informed by the Revenue Commissioners that as LPT is a self-assessed tax, 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 chargeable value of the property. I would like to clarify that the Revenue Commissioners will not be involved, as a matter of routine, in valuing individual properties. As part of the general issue of Returns that commenced on 11 March 2013 and which is now almost complete, property owners received an information booklet and a Revenue Estimate of LPT. The Revenue Estimate is not based on a valuation of each owner’s individual property nor should it be regarded as an accurate calculation of the amount of LPT they should pay. Once the property owner meets his or her obligations by determining the valuation band for their property, submitting the Return and advising Revenue of his or her payment method within the relevant time limits, the Revenue Estimate of LPT notified to the owner is no longer relevant. However, if the property owner considers that the amount shown on the Notice of Estimate accurately reflects his or her self-assessment, he or she should complete the Return on that basis, select a payment option and submit the Return.
I am further advised by the Revenue Commissioners that the valuation guidance developed by the Commissioners and which is now available on their website, is designed to help property owners in self-assessing the market value of their property by giving them average, indicative values for their area. This guidance should not be used in isolation but together with other sources of information and the property owner’s knowledge of their neighbourhood and their own property. Other useful sources include the publicly available property price register produced by the Property Services Regulatory Authority, the property section of local newspapers, information from local estate agents and property websites. As I have previously advised the House, where the Revenue guidance is used in an honest manner, the property valuation made by a property owner will not be challenged by Revenue in accordance with its normal Customer Service Charter. Finally, I have been advised by the Revenue Commissioners that as the issues raised are specific to the members of the particular Residents Association, Revenue will correspond directly with the Association to address these issues. The Commissioners also advise that they will send you a copy of any reply that they issue to the Association.
203. Deputy Tom Fleming asked the Minister for Finance if he is satisfied that the banks are making adequate credit available to small and medium sized businesses; and if he will make a statement on the matter. [16749/13]
View answerThe Government recognises that SMEs are the lifeblood of the economy and will play a vital role in the recovery of employment growth in our country. One of the key priorities of the Programme for Government is to ensure an adequate pool of credit is available to fund SMEs in the real economy during the restructuring and downsizing programme. The Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion in 2012 and €4 billion in 2013 for new or increased credit facilities to SMEs. The Credit Reviewer, Mr John Trethowan, said in his most recent quarterly report that "both banks have achieved their €3.5bn SME loan sanction targets" and that "over €8bn was sanctioned in 2012; of which approx. €2.5bn (27%) is new lending drawn down". According to the Credit Review Office, the balance of the sanctioned lending represented restructured or refinanced credit to SMEs. The Credit Review Office in the past has noted that this is important in terms of sustaining the businesses and the associated jobs.
In addition to the lending targets imposed on the banks, the pillar banks are required to submit their lending plans to the Department and the Credit Review Office (CRO) at the beginning of each year, outlining how they intend to achieve their lending targets. The banks have submitted their lending plans for 2013 to my Department. My Department, in conjunction with the CRO, has analysed the plans and has met the banks to discuss them. The banks also meet the Department of Finance and the CRO on a quarterly basis to discuss progress. The monthly management meetings with the pillar banks also provide a forum for the issue of SME lending to be raised by the Department. My officials and I will engage robustly with the banks to ensure they meet their 2013 targets. It is important to note that the targets for 2013 represent an increase of 33% over the 2011 targets. My Department’s review of 2012 is available at www.finance.gov.ie/viewdoc.asp?DocID=7609&CatID=45&StartDate=01+January+2013. It contains details of some of the actions taken in 2012 including demand surveys, ongoing consultation with the SME sector, initiatives with the banks, the Credit Review Office review and increase of its resources and NPRF funds for the SME sector. Another demand survey is currently being conducted by Red C on behalf of the Department.
Access to Finance for SMEs is a key aspect of the Action Plan for Jobs 2013. It is the Government’s vision that all viable businesses operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy. The SME State Bodies Group was established in 2012 to both develop key policy initiatives to support SME access to credit and other forms of finance, and to ensure their implementation. It will continue in 2013 to engage intensively in proactively addressing issues associated with SME funding and financing in conjunction with the relevant stakeholders through the SME Funding Consultation Committee. My officials also meet frequently with additional stakeholders who wish to contribute to policy development in relation to access to finance.
The Government has taken a number of actions, particularly where SMEs have been refused credit, to improve the situation in relation to credit availability to SMEs. The Temporary Partial Credit Guarantee scheme addresses the situation where the SME is outside the risk appetite of the banks. This can arise because the SME's lack of collateral or the banks' lack of understanding of the business model, the market, the sector or the technology. The three main SME lenders are all participating in the Guarantee scheme. The Microenterprise Loan Fund Scheme will provide loans of up to €25k to start-up, newly established, or growing microenterprises employing less than 10 people, who have commercially viable proposals that do not meet the conventional risk criteria applied by banks. One of the most powerful ways of ensuring the pillar banks provide credit to viable SMEs is through access to the Credit Review process. I would strongly advise anyone who has been refused credit to avail of the services of the Credit Review Office.
204. Deputy Robert Dowds asked the Minister for Finance his views on banks engaging in constructive refusal of credit for small businesses by means of not replying to requests for credit; his views on whether this is a significant hindrance to job creation; and the measures he is taking to ensure that banks are not engaging in constructive refusal of credit. [16846/13]
View answerThe issue of constructive refusals of credit is dealt with in Statutory Instrument 127 of 2010 which contains guidelines relating to the Credit Review Office. Paragraphs 5 and 6 provide:
5. Where a decision on an application for a credit facility is not given by the participating institution within 15 working days, this shall be regarded as constructive refusal and the borrower may apply for review to the Credit Reviewer.
6. Where a borrower considers that the terms or conditions attached to a credit facility or its price are so onerous as to amount to a constructive refusal, the borrower is entitled to apply for a review. The Credit Reviewer shall issue guidance on the reasonableness of terms, conditions and pricing.
One of the most powerful ways of ensuring the pillar banks provide credit to viable SMEs is through access to the Credit Review process. I would strongly advise anyone who has been refused credit, whether by constructive refusal or otherwise, to avail of the services of the Credit Review Office.
205. Deputy Robert Dowds asked the Minister for Finance if he will provide, in tabular form, figures from the last year for which they are available for the total number of loan applications made by small and medium enterprises to each Irish financial institution; the number of loan applications from small businesses which were refused by each Irish financial institution; the number of loan applications which were approved by each Irish financial institution; and the number of loan applications which did not get to a stage where they were either approved or refused at each Irish financial institution. [16847/13]
View answerMy Department only receives the figures requested from the pillar banks. Bank of Ireland has submitted the following information on credit applications: some 55,741 applications were received in 2012, some 47,531 applications were approved in 2012, and some 8,210 applications were declined in 2012. The bank has also informed me that less than 1% of applications were pending decision at year end and these are included in the declined number. Allied Irish Bank has submitted the following information on credit applications: some 34,254 applications were received in 2012, some 31,527 applications were approved in 2012, and some 2,727 applications were declined in 2012. The AIB figures only refer to completed applications and do not include pending applications, the numbers of which would vary from time to time. In addition, the Department of Finance credit demand survey conducted by Red C provides information on the outcome of credit applications by the firms surveyed. The survey covers the period from April to September 2012 and showed that 56% of applications were approved in full, 4% partially approved, 21% were still pending and 19% were refused. When the pending applications are excluded, this gives 76% approved in full or partially and 24% refused. Red C is currently conducting another survey on behalf of my Department which will cover the period from October 2012 to March 2013.
206. Deputy Brendan Smith asked the Minister for Finance if a waiver or reduction in the amount of the household tax will be made available to senior citizens, particularly those with a disability as many senior citizens in this category do not have the resources to meet additional household payments; his plans to introduce or consider introducing a waiver or reduction for senior citizens and or senior citizens with a disability; and if he will make a statement on the matter. [16884/13]
View answerWhile there is no specific exemption from or reduction in the charge to Local Property Tax (LPT) for senior citizens or senior citizens with a disability, the Finance (Local Property Tax) Act 2012 (as amended) contains certain provisions that may be relevant, depending on the particular circumstances involved. For individuals on low incomes or those whose only income source is from the Department of Social Protection, the Finance (Local Property Tax) Act 2012 provides for the possibility of deferring the charge to LPT in certain cases. A system of deferral arrangements for owner-occupiers is available where there is an inability to pay the tax and certain specified conditions are met. A person who qualifies for full deferral can opt to defer 100% of the LPT liability. A person who qualifies for partial deferral can opt to defer 50% of the liability and must pay the balance of LPT. The deferral arrangements available under the legislation are as follows:
|
Condition Number |
Condition |
|
|
Full Deferral |
1 |
Gross income for the year is unlikely to exceed €15,000 (single or widow/er) and €25,000 (couple) |
|
Full Deferral |
2 |
Gross income for the year is unlikely to exceed the adjusted income limit. This adjusted income limit is calculated by increasing the thresholds of €15,000 (single or widow/er) and €25,000 (couple) by 80% of the expected mortgage interest payments for the year 2013. This applies until 31 December 2017. |
|
Partial Deferral |
3 |
Gross income for the year is unlikely to exceed €25,000 (single or widow/er) and €35,000 (couple). |
|
Partial Deferral |
4 |
Gross income for the year is unlikely to exceed the adjusted income limit. This adjusted income limit is calculated by increasing the thresholds of €25,000 (single or widow/er) and €35,000 (couple) by 80% of the expected mortgage interest payments for the year 2013. This applies until 31 December 2017. |
In all cases, interest will be charged on LPT amounts deferred at a rate of 4% per annum. The deferred amount, including interest, will attach to the property and will have to be paid before the property is sold or transferred. I am informed by the Revenue Commissioners that, for those who do not qualify for deferral of the tax, there is a wide range of payment options available to liable persons, which will allow them to pay their LPT liability in full or to pay the tax for 2013 in equal instalments over the period 1 July 2013 to end December 2013. As regards exemption for disabilities, an exemption from the charge to LPT will apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court, or where a trust has been established, specifically for the benefit of such individuals. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the chargeable value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence. Provision is also made in the legislation for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided by a local authority. The reduction is limited to the lesser of the market value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted, unless the person with the disability continues to reside in the property. Furthermore, the impact of specific adaptations on a property can be to decrease the value which may in turn impact on the LPT liability. I am advised by the Revenue Commissioners that details of the existing exemptions are available on Revenue’s website, www.revenue.ie, where the Commissioners have recently published a useful Guide to Local Property Tax. I have no plans to extend the exemptions and reliefs from Local Property Tax currently provided in the legislation.
207. Deputy John Halligan asked the Minister for Finance when a property falls within valuation band number one but in terms of both comfort and cost is well below the standard of the mid-point valuation pertaining to that relevant scale, if he will confirm if it is right that a person with very limited means living in such a property would be compelled to pay the property tax; his views on whether properties which are valued below the €50,000 mid point valuation should be exempt from the charge; and if he will make a statement on the matter. [17227/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered. The Local Property Tax (LPT) is a market value based self-assessed charge. It is based on bands of €50,000 in width for properties valued between €100,001 and €1,000,000. The amount payable is determined by the mid-point of the relevant band. For properties valued at €100,000 and under, the amount payable will be determined by the mid point of that band, that is, €50,000. The tax will be 0.18% of the mid point figure in each band up to €1,000.000. Properties valued under €50,000 will be liable to LPT at the rate of 0.18% of €50,000, which will be represented by a charge of €90 in a full year, and €45 for the half year to be charged in 2013. Both Commissions on Taxation (2009 and 1982) recommended the grouping of values into broad bands, as did the Inter-Departmental Expert Group on the Design of a property tax, known as the Thornhill group. The Government accepted the recommendation of the Thornhill group for a market value based system of self-assessment involving bands of €50,000 in width for properties valued between €100,001 and €1,000,000, and a basic charge determined by applying the tax rate to the midpoint value of €50,000 for properties valued at less than €100,000.
In assessing the appropriate market value bands, the Thornhill Group drew on the work undertaken for it by the ESRI and that carried out in the Department of Finance. The ESRI's work suggests that some 90% of properties are currently valued at €300,000 or less. In making its decision, the Thornhill Group also had reference to work carried out by the Department of Finance, showing that the majority of properties (60%) fell within a valuation range of €100,000 to €200,000. The use of bands allows property owners to place their properties in an appropriate valuation band with reasonable confidence, without potentially being exposed to disproportionate risks if they incorrectly self-assess the value of their property, and makes the valuation process as effective and unproblematic as possible for owners. Grouping all except the most expensive properties into valuation bands will ease valuation challenges for liable persons. The Government decided that a universal liability to the LPT should apply to all owners of residential property with a limited number of exemptions. Limiting the exemptions available allows the rate to be kept low for those liable persons who do not qualify for an exemption. There are no plans to exempt properties valued at under €50,000 from the LPT. A person with limited means may be in a position, depending on circumstances, to defer payment of the tax. The deferral provisions contained in the legislation are targeted at cases of needs and better address need than a blanket exemption for all properties valued at €50,000 or under.
208. Deputy Dominic Hannigan asked the Minister for Finance his views on a matter regarding compliance with building regulations (details supplied); and if he will make a statement on the matter. [17406/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) sets out in detail how the tax is to be administered and provides how a residential property is to be valued for LPT purposes. I am advised by the Revenue Commissioners that Local Property Tax (LPT) is a self-assessment 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. While there is no specific exemption available for a property that has been declared to be non-compliant with building regulations, it will be a matter for the property owner to decide whether non-compliance with building regulations has a material impact on the value of the property, and if so, to what extent. The Revenue Commissioners have prepared valuation guidance which, together with a liable person’s own knowledge of their property, will assist them in choosing the correct valuation band for their property. One of the advantages of the banding system of values provided for in the legislation is to remove the need for precision in relation to the market value, except for properties worth over €1 million. As I have stated before in the House, where Revenue’s guidance is used honestly the property valuation will not be challenged by Revenue, in accordance with their normal Customer Service Charter.
209. Deputy Pearse Doherty asked the Minister for Finance if he will re-examine the case of a person (details supplied) in County Wexford with respect to the failure of a previous employer to provide a P45. [17612/13]
View answerI am advised by the Revenue Commissioners that a letter issued on 12 April 2013 to the previous employer of the person in question, requesting a P45.
