Written Answers Nos. 202-218
202. Deputy Pearse Doherty asked the Minister for Finance in respect of 2012, if he will set out the payments, providing the name of the company or individual and amount paid, made to receivers, administrators and liquidators by companies to which those receivers, administrators and liquidators were appointed by the National Asset Management Agency. [20286/13]
View answerNAMA advises that insolvency practitioner fees for insolvency services across the NAMA- and PI-managed portfolios in 2012 totalled €19.2 million. NAMA advises that it is prohibited under Sections 99 and 202 of the NAMA Act from providing data on an individual debtor connection or insolvency appointment basis.
203. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Questions Nos. 208 and 210 of 23 April 2013, if he will confirm if a bonus had in fact been awarded to a person (details supplied); if so, the date on which the bonus was awarded; the amount of the bonus awarded; the maximum bonus to which he was entitled; and if he will outline the objectives met by him which gave rise to the award of the bonus [20287/13]
View answerI am informed by the Central Bank that the terms of the contract agreed with the Deputy Governor Financial Regulation provided for a performance related payment of €100,000 payable on review of performance at the end of the third year of the contract. When Mr. Elderfield's contract was agreed in November 2009, the bonus was part of an agreed remuneration package which involved a 50% cut from his salary in Bermuda. Mr. Elderfield subsequently took a 15% cut in his Central Bank salary.
Mr Elderfield agreed to defer the payment of any possible performance related bonus, which was due in January 2013, as part of his terms and conditions of employment agreed, until the end of his employment with the Central Bank. Mr Elderfield has subsequently advised the Commission of the Central Bank that he has waived his €100,000 bonus entitlement at the end of his contract of employment.
204. Deputy Pearse Doherty asked the Minister for Finance the number of debtors referred by the National Asset Management Agency to An Garda Síochána arising from submissions by the debtors; and if he will make a statement on the matter. [20288/13]
View answerNAMA advises that, to date, it has referred two formal complaints to the Garda Bureau of Fraud Investigation arising from possible failure by debtors to fully disclose their assets and liabilities in their statements of affairs to the Agency.
205. Deputy Pearse Doherty asked the Minister for Finance following the publication of the 2012 annual report by the Revenue Commissioners if he will provide his assessment of the performance of the Revenue in 2012, and particularly if there are issues which are of concern; and if he will make a statement on the matter. [20290/13]
View answerThe 90th Annual Report of the Revenue Commissioners, covering the year 2012, provides a very comprehensive account of Revenue’s performance across a range of key strategic and business programmes and reflects the progress of the organisation in the implementation of its Statement of Strategy. The Report reflects the impact and importance of key actions and activities by Revenue in securing the critically important tax receipts for the Exchequer, in maintaining and building on high levels of timely compliance, in responding to non compliance through its range of audit and compliance intervention programmes, in addressing shadow economy activity and serious fraud and criminality in relation, for example, to tobacco smuggling, fuel laundering and illicit drugs importation. The Report also reflects excellent work done by Revenue in reducing the administrative burden on businesses saving over €85 million per year for businesses and in reducing its own administrative costs.
In the context of Revenue's broad and multifaceted strategic and operational role, I am concerned, inter alia, with collection of the tax that is due to the State but in a way that recognises the challenge for business in meeting their on-going tax compliance and payment obligations, given the difficult environment for business and cashflow constraints at present, the impact on compliant businesses and tax receipts of those who engage in tax evasion and avoidance and the impact of smuggling and associated illegal activity. I am also concerned that Ireland's economic and financial development is supported by a tax and customs regime that supports enterprise and business and contributes to our economic recovery and social development and ultimately helps restore the sustainability of the public finances. Revenue’s work and performance is, therefore, of considerable significance and importance. I acknowledge the innovative and professional approach by Revenue to discharging its role. I reiterate my strong personal support and that of the Government for the work of Revenue and commend them for the performance and results delivered in 2012.
206. Deputy Dominic Hannigan asked the Minister for Finance the latest update on the AVC investment opportunity that was announced in budget 2013; when he expects it to be operational; and if he will make a statement on the matter. [20313/13]
View answerI assume that the Deputy is referring to the arrangements for limited pre-retirement access to Additional Voluntary Contributions (AVCs) which I announced in my Budget 2013 speech. Finance Act 2013 was passed into law on 27th March and section 17 of the Act, which makes provision for the pre-retirement access to AVCs announced in the Budget, has effect from that date. Section 17 introduces a new section 782A into the Taxes Consolidation Act 1997 which provides members of occupational pension schemes with a three-year window of opportunity to draw down, on a once-off basis, up to 30% of the accumulated value of certain AVCs made by them, including additional voluntary PRSA contributions made to AVC PRSAs. Where AVCs are subject to a pension adjustment order, both parties to the order may exercise the option independently in respect of their respective "share" of the AVCs.
The procedures set out in the legislation for exercising the AVC access option are straight forward and I have outlined these hereunder. However, in addition to these procedures, I am aware from discussions which my Department and the Revenue Commissioners have had with various pension industry representative bodies, that the administrators of AVC funds will also be putting administrative procedures and systems in place to facilitate the access option at an operational level. I understand that these administrative and systems procedures are in the process of being finalised.
The likelihood is, of course, that an individual contemplating availing of the option will firstly contact his pension fund administrator by phone or email to establish what he or she needs to do. In that regard, the legislation requires the individual to give an irrevocable written instruction to the administrator of the fund that he or she wishes to avail of the option. Provided the individual qualifies for the encashment option, the administrator acts on the instruction by determining the value of the AVC fund and paying an amount, not exceeding 30% of the value, to the individual subject to deduction of the appropriate amount of tax. The amount paid is treated as emoluments to which Schedule E applies and tax is collected at source under the PAYE system. The legislation requires the administrator to deduct tax at the higher rate of 41%, unless the administrator has received from Revenue a tax credit certificate in respect of the individual. The payments are specifically exempt from USC and PRSI.
I am advised by the Revenue Commissioners that, in advance of any payment of AVCs being made, the individual exercising the option should contact his or her Revenue Office for a Certificate of Tax Credits and Standard Rate Cut-off point in respect of the AVC payment. It may be the case that the pension fund administrator will contact Revenue on behalf of the individual, but where the individual is applying directly to Revenue he or she would need to advise Revenue of the pension fund administrator's registered number (i.e. employer number) so that Revenue can forward the Certificate to the correct administrator. The Certificate will indicate the Standard Rate Cut-off Point and tax credits, if any, appropriate to the AVC access payment and facilitate the deduction of the correct amount of tax by the administrator.
207. Deputy Joanna Tuffy asked the Minister for Finance his views regarding an increase in interest charges for homeowners who have variable mortgages with AIB, EBS and Haven; the effect that these increases will have on customers who are struggling to meet their mortgage repayments every month; if he will take steps to consult with the banks and building societies regarding this issue; and if he will make a statement on the matter. [20368/13]
View answerWhile the Government is acutely aware of the increasing financial stress that some households are facing in the current environment, ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial matter for the management and the Board of the Institution. As the Deputy will be aware the Relationship Framework with AIB provides that the State will not intervene in the day-to-day operations of the bank or their management decisions. This framework is published on the Department of Finance website. I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. Neither the Central Bank nor the Department of Finance has a statutory function in relation to interest rate decisions made by individual lending institutions at any particular time. While this decision by AIB is regrettable it is strictly a commercial decision by the board of AIB and I understand that this increase now brings AIB in line with the market average. The standard variable rates charged by the Irish banks are significantly below the equivalent rates by banks in the rest of the euro area, even though many of these banks have far lower funding costs.
It must be remembered that in order to fund mortgages the bank must borrow at current wholesale and deposit rates which are currently higher than the ECB base rate and the bank must ensure that the rate it lends at is economically sustainable and provides a return for the bank and ultimately the State as its shareholder. It would not be fair for 2.1 million taxpayers to subsidise 138,000 owner occupier mortgages, especially when the vast majority of these mortgage holders can afford to pay their mortgages.
I understand that the Central Bank of Ireland pays attention to the effect of any increases in the standard variable rate, on mortgage arrears and would no doubt be concerned if banks were exacerbating their arrears problem and as such impairing their on-going viability, from such actions.
208. Deputy Dara Calleary asked the Minister for Finance the number of Revenue Form 12s issued to persons in 2010, 2011 and 2012; in tabular form on a county basis. [20378/13]
View answerI am advised by the Revenue Commissioners that they have assumed the question relates to the number of Forms 12 issued for each of the tax years 2010, 2011 and 2012 and these figures are set out in the table below. PAYE taxpayers are not required to file an annual return. However, Revenue carries out a general issue of Forms 12 to PAYE taxpayers each year. The general issue is based on certain risk criteria that the Commissioners apply to select cases that they require a tax return from in a particular year.
I am further advised that the figures in the table cover the general issue of returns for the three years in question. They do not include details of Forms 12 (full) and Forms 12S (short) which issued to taxpayers as a result of specific projects carried out within Revenue Districts. As details of the numbers of these "ad hoc" returns are not centrally captured or maintained they could not be quantified without conducting an extensive investigation of Revenue records on a nationwide basis. I am also advised that the 2012 figures included in the table are draft and will be finalised shortly.
I am also advised that the breakdown is provided on a Revenue District basis rather than on a county basis as requested by the Deputy. In that regard, the Revenue District figures include, in some cases, an amalgam of counties.
Table: Forms 12
|
Region |
District |
2010 |
2011 |
2012 |
|
Dublin |
All |
11,729 |
18,644 |
14,615 |
|
Border Midlands West |
Galway City/Roscommon |
1,280 |
2,196 |
2,446 |
|
Galway County |
669 |
2,269 |
3,515 |
|
|
Mayo |
539 |
2,097 |
3,486 |
|
|
Sligo/Leitrim/Longford |
3,266 |
3,466 |
4,930 |
|
|
Donegal |
488 |
1,302 |
2,756 |
|
|
Westmeath/Offaly |
572 |
1,481 |
1,821 |
|
|
Louth |
437 |
827 |
1,045 |
|
|
Cavan/Monaghan |
399 |
1,459 |
2,214 |
|
|
South West |
Cork |
2,311 |
5,001 |
4,219 |
|
Kerry |
541 |
1,516 |
1,852 |
|
|
Limerick |
817 |
1,856 |
0 |
|
|
Clare |
479 |
1,217 |
0 |
|
|
Limerick/Clare |
0 |
0 |
3,234 |
|
|
East South East |
Tipperary |
406 |
1,182 |
1,147 |
|
Kilkenny/Carlow/Laois |
708 |
1,735 |
1,828 |
|
|
Waterford |
592 |
1,361 |
1,164 |
|
|
Wexford |
412 |
1,243 |
1,159 |
|
|
Wicklow |
809 |
1,608 |
1,255 |
|
|
Kildare |
1,139 |
2,141 |
1,749 |
|
|
Meath |
746 |
1,738 |
1,593 |
|
|
Total |
28,339 |
54,339 |
56,028 |
209. Deputy Tom Fleming asked the Minister for Finance the financial concessions or exemptions from property tax for householders in flood prone areas (details supplied); and if he will make a statement on the matter. [20385/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) sets out how a residential property is to be valued for Local Property Tax (LPT) purposes. While there are no specific exemptions or financial concessions from LPT for householders in flood prone areas, the following information would be of relevance in these cases. As LPT is a self-assessed tax, 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, properties valued under €1 million are organised into valuation bands – an initial band from €0 to €100,000 and between €100,001 and €1 million a range of €50,000 in each band – and property owners will not be required to provide a precise value for their property.
The Revenue Commissioners have prepared valuation guidance which, together with the owner’s own knowledge of her/his property, will assist in assessing its value. The guidance includes an on-line guide that will provide indicative property valuation bands depending on the property type, age and location. If a property has certain unique features, is smaller or larger than the average for the area, is in a significantly poor state of repair or has exceptional features, the owner will have to factor this into her/his assessment of the valuation of the property. In this context, location and the risk of flooding are factors which are likely to impact on the market value of a property and which a property owner would generally take into account in valuing the property. Where a property owner feels that the Revenue guidance is not indicating a reasonable valuation for their property, s/he should make her/his own assessment. I am advised by Revenue that further information on this issue has been published by way of Frequent Asked Questions, which can be found at on their website at http://www.revenue.ie/en/tax/lpt/faqs/valuation.html.
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.
211. Deputy Dominic Hannigan asked the Minister for Finance if there are any plans for legislation that allows persons who invested in projects via crowd sourcing websites to receive equity for their investment like the JOBS Act which was introduced in the United States of America last year; and if he will make a statement on the matter. [20390/13]
View answerThe Review of the Equity Investment Landscape in Ireland published by Forfás earlier this year considered the issue of crowd funding and the changes introduced by the Jumpstart Our Business Startups Act (JOBS) in the United States. The Review recognised that "many internationally orientated Irish companies preferred option is to raise capital overseas". These companies may be able to exploit the funding opportunities offered by the JOBS Act. The Government has taken a number of significant initiatives aimed at providing equity support for SMEs. The NPRF has announced two funds which will invest in SMEs. The SME Equity Fund (total fund size €300 million - €350 million/NPRF commitment €125 million) will focus on investing in healthy businesses seeking to grow, including those with overleveraged balance sheets. The fund, which has received commitments from other-third party investors, is operational and is managed by Carlyle Cardinal Ireland.
The SME Turnaround Fund (total effective fund size €100 million/NPRF commitment €50 million) will invest in underperforming businesses which are at or close to the point of insolvency but have the potential for financial and operational restructuring. Typically 40 per cent of the capital invested by the fund will be used to buy the business and 60 per cent will be used to finance the turnaround in order to place it on a sustainable long-term footing. The fund is also operational and is managed by Better Capital.
In addition, the NPRF is also currently reviewing additional SME fund opportunities that would complement these funds, with the objective that the eventual suite of funds would have the capacity to invest across the full spectrum of SME financing needs.
The 10 point Tax reform plan to help small business announced in the 2013 budget is another initiative which is aimed at assisting SMEs gain access to funding. These measures complement measures already being undertaken by the Department of Jobs, Enterprise and Innovation and bodies under its aegis. In particular, Innovation Fund Ireland and Development Capital Fund Ireland provide equity for 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.
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.
One of the actions assigned to the State Bodies Group under the Action Plan for Jobs 2013 is to "Investigate the potential for alternative funding mechanisms including peer to peer lending, supply chain finance and crowdfunding."
A matrix on SME funding has been completed and published on Department of Finance website and smallbusinessfinance.ie website. This matrix outlines various sources of funding available to SME and provides contact information for them.
Crowd funding is in its infancy in Ireland. I am aware of a peer to peer credit website which was recently launched in Ireland. Irish entities, particularly in the creative fields, have accessed other crowd funding sites. However, the issue of crowdsourcing equity and securities regulations is not an issue which has been raised with my Department. Company Law comes under the aegis of the Department of Jobs, Enterprise and Innovation.
212. Deputy Brendan Griffin asked the Minister for Finance if exemptions from the local property tax will continue for persons in receipt of mortgage interest supplement and properties which are uninhabitable; and if he will make a statement on the matter. [20428/13]
View answerI am informed by the Revenue Commissioners that there is no specific exemption from the Local Property Tax (LPT) for persons in receipt of mortgage interest supplement. For individuals on low incomes the Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral arrangements for owner-occupiers 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 part deferral can opt to defer 50% of the liability and must pay the balance of LPT. On 25 April I provided details on the option of deferring payment of LPT based on income threshold in my reply to PQ 19691. I am advised by the Commissioners that information on all deferral options are outlined in the Guidelines on Deferral or Part Deferral of Local Property Tax, which are available on Revenue’s website www.revenue.ie.
For LPT purposes, a residential property is defined as any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling and includes any shed, outhouse, garage or other building or structure and includes grounds of up to one acre. The Finance (Local Property Tax) Act 2012 (as amended) provides that a liability for LPT will arise where a person owns a residential property on the liability date which will be 1 May 2013 for the year 2013. LPT is a self-assessed tax and I am advised that if a property is not suitable for use as a dwelling, the liable person is obliged to notify the Revenue Commissioners as soon as possible after they receive their LPT Return, outlining why they consider a charge to LPT does not arise on the property and they must include relevant supporting documentation – for example, an engineer’s report.
213. Deputy Dominic Hannigan asked the Minister for Education and Skills his plans for the July provision scheme in respect of a school (details supplied) in County Meath; if a value for money review of this decision has been done; and if he will make a statement on the matter. [19733/13]
View answerParticipation in my Department's July Provision Scheme is an option for all special schools and mainstream primary schools with special classes catering for children with autism or severe to profound general learning disability that choose to extend their education services through the month of July.
All qualifying schools have now been invited to participate in the 2013 scheme and application forms will issue this week to schools intending to participate. The issue in the school referred to by the Deputy will be considered on receipt of their application form.
214. Deputy Clare Daly asked the Minister for Education and Skills his policy with regard to the way it is permissible for retired teachers to continue to gain employment in the education system post their retirement. [19737/13]
View answer215. Deputy Clare Daly asked the Minister for Education and Skills if he will justify the way a teacher (details supplied) in County Monaghan who retired more than four years ago from one school, has been employed since in another school on a regular part-time basis and has subsequently been awarded the position of chairperson of a county vocational education committee in the context of so many unemployed young teachers. [19738/13]
View answerI propose to take Questions Nos. 214 and 215 together.
Circular 31/2011 details a cascade of measures for recruitment of teachers, prioritising unemployed registered teachers over retired registered teachers and registered teachers over unregistered people. It is important to note that boards of management of schools and vocational education committees employ teachers and not the Department of Education and Skills.
Under the current circulars, each Principal must report to his or her board of management on a regular basis on the fact that a list of unemployed registered teachers is being maintained, and the circumstances in which he or she has had to engage a registered teacher who is retired or an unregistered person.
From January 2011 teachers who are in receipt of a pension and who return to teaching are paid at the first point of the relevant salary scale applicable to new entrants. This represents a significant financial disincentive for teachers who retired at the top of their salary scale, often with a post of responsibility allowance, to return to teaching.
The Department monitors the engagement of retired teachers in schools. Where there is long-term engagement of such teachers, those schools are written to and are reminded of the provisions of Circular 31/2011.
The individual to whom the Deputy refers is employed by County Monaghan Vocational Education Committee which is a statutory body established under the Vocational Education Acts. The issue raised in relation to him relates fundamentally to the employer/employee relationship. Employment information relating to this person is not held by my Department.
216. Deputy Derek Nolan asked the Minister for Education and Skills if, in view of the outcome of the recently completed surveys of primary school patronage, in which parents in 20 of the locations surveyed expressed a preference for the establishment of a primary school under the patronage of Educate Together, he intends to carry out a similar survey for post primary schools, in order that the growing demand for post primary schools under the patronage of Educate Together can be assessed and provided for; and if he will make a statement on the matter. [19759/13]
View answerThe surveys referred to by the Deputy were carried out on foot of recommendations made by the Forum on Patronage and Pluralism in the primary sector. Resources are now being concentrated on implementing the survey outcomes. I have no plans to extend the surveys to post-primary level at this time.
217. Deputy Finian McGrath asked the Minister for Education and Skills the reason for not recognising Down's syndrome pupils for resource hours; and if he will end this discrimination such as in the special education circular 02/05. [19780/13]
View answerThe Deputy will be aware of this Government's ongoing commitment to ensuring that all children with special educational needs, including children with Down syndrome, can have access to an education appropriate to their needs. The policy of my Department is to secure the maximum possible level of inclusion of students with special educational needs in mainstream primary and post-primary schools, or where a special school or special class placement may be required to ensure such placements are provided for. Pupils with Down syndrome attending mainstream schools may receive additional resource teaching support in primary schools, either under the terms of the General Allocation Model (GAM) of teaching supports, if the pupil's educational psychological assessment places the pupil in the mild general learning disability/high incidence disability category, or through an allocation of individual additional resource teaching hours, which are allocated by the National Council for Special Education (NCSE), if the child is assessed as being within the low incidence category of special need, as defined by my Department's Circular Sp Ed 02/05.
Resource teaching hours may therefore be provided for children with Down syndrome either under the General Allocation Model, or through low incidence allocation.
I have asked the National Council for Special Education to provide me with policy advice on the issue of whether Down syndrome should be reclassified as a low incidence disability in all instances, regardless of assessed cognitive ability. This advice will be included in the NCSE's comprehensive policy advice on how the education system can best support children with special educational needs which is currently in preparation and which is expected in the coming months.
218. Deputy Finian McGrath asked the Minister for Education and Skills his plans to remove funding for pupils with autism in mainstream schools for their July provision. [19782/13]
View answerI wish to advise the Deputy that there no plans to remove funding for pupils with autism in mainstream schools for their July provision. The July Provision Programme is available to all special schools and mainstream primary schools with special classes catering for children with autism who choose to extend their education services through the month of July. My Department also provides for a July Programme for pupils with a severe/profound general learning disability. Where school based provision is not feasible, home based provision may be grant aided. Children with autism in receipt of resource support in mainstream schools are eligible for home based provision.
