Written Answers Nos. 35 - 43
37. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if he will report on the impact of the proposed agreement on Croke Park 2 on medium term expenditure targets on public spending up until Budget 2017. [24521/13]
View answerThe economic forecasts underpinning Budget 2013 were consistent with the expenditure consolidation set out on Budget day and included provisions for savings through a reduction in the public service pay bill of €300m in 2013 and an overall reduction of €1bn by 2015. These forecasts were updated at the end of last month for the Irish Stability Programme – April 2013 Update. They continue to reflect the consolidation envelope laid out at Budget time as well as the outturn for 2012 as estimated by the CSO. As set out in the forecasts, the government consumption component of GDP is set to decline in every year to 2015, consistent with policy-related objectives of reducing the public sector pay bill.
38. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects public expenditure and reform targets to be met in the current and subsequent years throughout the public sector with particular reference to the review of the Croke Park 2 agreement; and if he will make a statement on the matter. [24672/13]
View answerThe Government continues to make good progress on achieving all of our deficit targets and priorities, as articulated in the Government Programme. We are bringing public expenditure back onto a sustainable path and driving forward the public service reform agenda to ensure that efficiencies and reformed work practices play a full part in contributing to the overall budgetary consolidation effort which is essential to achieving economic recovery. To date, all quantitative fiscal targets set as part of the EU/IMF Programme of Financial Support have been met in full and I am confident that the 2013 target will, likewise, be achieved in full, including the appropriate contribution from public service pay and pensions.
39. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade the countries with whom Ireland has diplomatic relations who have never received an Irish Ministerial visit; if he is considering making progress regarding same in view of the economic opportunities it might create for Ireland; and if he will make a statement on the matter. [24945/13]
View answerWe currently maintain diplomatic relations with 176 states. Economic and trading opportunities are a key focus in those relations. While the research involved in identifying countries which have not received a Ministerial visit since the foundation of the State would be disproportionate in the current context, I can assure the Deputy that Ministerial visits are a central part of the Government’s Trade Strategy which is overseen by the Export Trade Council, which I chair, and implemented on the ground abroad in our priority markets by Ambassadorial-led local market teams.
Ministerial involvement in visits with an economic dimension is varied. For example, proposals for Ministerial-led trade missions to priority markets involving Enterprise Ireland client companies are submitted each year for consideration simultaneously to both the Minister for Jobs, Enterprise and Innovation and myself.
Delivering an intensive programme of Ministerial-led trade missions is a key commitment in the Government’s Action Plan for Jobs 2013. The number of Ministerial-led Enterprise Ireland trade missions conducted with the active support of the Embassy network has more than doubled over the past two years, up from eight in 2011 and 16 in 2012. In 2013, a record number of Ministerial-led Enterprise Ireland trade missions are scheduled. In order to leverage Ireland’s role as EU Presidency, trade missions in the first half of 2013 are mainly Europe-focused, with an increased focus on high growth economies in Asia, the Middle East and South America in the second half of the year. As part of the programme co-ordinated and approved by the Minister for Jobs, Enterprise and Innovation and myself, over 1,000 Enterprise Ireland client companies will take part in 18 Ministerial-led trade missions and 87 international events during the year in major target markets in North America, Europe, Asia, the Middle East and Latin America.
I led a trade mission to Turkey last month involving 24 Enterprise Ireland client companies. Deals secured during the visit are expected to reach well over €30m in value.
We have also ensured that the programme of Ministerial travel for St Patrick’s Day is used to greatest possible effect in terms of economic and trade promotion. This year it comprised Ministerial visits to 21 countries, including a senior Ministerial visit to the Philippines and Indonesia for the first time, to Saudi Arabia for the first time in over a decade, and to Japan and South Korea for the first time since 2010.
In addition to these missions, whenever Ministers travel on official business overseas, every effort is made to ensure that appropriate opportunities are taken for a substantive economic and promotional dimension to the visit.
In April for example, Minister of State for Trade and Development, Joe Costello TD, was the first Irish Minister to visit Mongolia, where he attended the summit of the Community of Democracies Ministerial and, while there, had a series of bilateral engagements, including meeting the Foreign Minister of Mongolia, Luvsanvandan Bold, Irish business people resident in Ulaanbaatar, representatives of a number of Mongolian Government Ministries, and a leading mobile internet and telephony company which utilises the services of an Irish technology company.
I would note also that our Embassy network continues to be strongly focused on supporting opportunities for trade, investment and tourism in all their countries of accreditation, including where they are not resident, assisted in many cases by our Honorary Consuls and local Irish business networks and organisations.
Our Ambassador in Hanoi, for example, last week led a delegation of Irish companies to Myanmar/Burma. The visit, which was organised in close co-operation with Enterprise Ireland, was the first ever trade trip by a group of Irish companies to Myanmar/Burma.
40. Deputy Tom Fleming asked the Minister for Finance following on from the decision to reduce the VAT rate from 13% to 9% and the significance of this reduction to the tourism sector here and the positive implications it has had on the industry in creating and maintaining jobs, giving value for money and so on, if he will keep the VAT rate at 9% to ensure a strong and competitive tourism industry; and if he will make a statement on the matter. [24843/13]
View answerAny proposals to maintain the 9% rate into 2014 will be considered in the context of Budget 2014.
41. Deputy Clare Daly asked the Minister for Finance the tax relief available on pension contributions to a person who has a workplace pension, but who also makes contributions to another pension scheme for which they have no associated income payments. [24926/13]
View answerI am assuming that the question is referring to a situation where an employee is making pension contributions to his or her employer sponsored occupational pension scheme and is also making contributions to a personal pension plan in respect of which the individual does not have a source of relevant earnings against which to claim relief on the contributions. I am advised by the Revenue Commissioners that a possible scenario in which such a situation could arise would be where, in addition to paying contributions to an occupational pension scheme, an individual is also making contributions to a PRSA (other than to an AVC PRSA associated with the occupational pension scheme). A PRSA can be effected by anyone with or without a source of relevant earnings, which, in the context of PRSAs, in essence means earnings from employment or from a self-employed trade or profession. However, tax relief on any contributions made is dependent on the existence of an amount of relevant earnings. Where an individual is already in pensionable employment, his or her employment earnings would not, however, constitute relevant earnings for the purposes of tax relief on contributions to a PRSA. If no relevant earnings exist, the PRSA contributions can be carried forward indefinitely for set-off against future relevant earnings, subject to whatever limits apply to tax-relieved pension contributions in those future years.
I am further advised by the Commissioners that information, with examples, on how tax relief for pension contributions operates in practice is set out in Revenue eBrief 74/2009 which can be accessed on the Revenue website www.revenue.ie.
Finally, should the person to whom the Deputy’s question relates have any further queries regarding tax relief on pension contributions as it affects their particular circumstances, they might forward those queries to the Financial Services (Pensions) Unit of the Revenue Commissioners either by email to lcdretirebens@revenue.ie or in writing to the following address Financial Services (Pensions), Large Cases Division, Ballaugh House, 73/79 Lower Mount Street, Dublin 2.
42. Deputy Andrew Doyle asked the Minister for Finance the taxation benefits that are available to couples after entering into same-sex civil partnerships; if these tax benefits can be availed of by opposite-sex civil partnerships; and if he will make a statement on the matter. [24936/13]
View answerA couple that enters into a civil partnership under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 is entitled to the same treatment for income tax, capital gains tax, capital acquisitions tax and stamp duty as a married couple. The relevant taxation provisions were introduced in the Finance (No. 3) Act 2011. They allow civil partners to claim the benefits of joint assessment including the tax bands and tax credits that are available to married couples. The tax legislation also provides for relief for maintenance payments made on the breakdown of a civil partnership the same as is provided for separated or divorced spouses. There is also capital gains tax relief for property transfers made on foot of such an arrangement. The Act also provided for similar capital taxes and stamp duty reliefs on the transfer of property by gift or inheritance. For example, transfers of property between civil partners now qualify for the exemption from stamp duty that is available to married couples.
Further information can be obtained from the Frequently Asked Questions on the Revenue website at http://www.revenue.ie/en/personal/faqs/taxation-civil-partnerships.pdf and from leaflet IT2 - Taxation of Married Persons and Civil Partners - at http://www.revenue.ie/en/tax/it/leaflets/it2.html.
Under the provisions of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, a civil partner is defined as either of two persons of the same sex who are parties to a civil partnership registration or to a class of legal partnership otherwise recognised under the Acts of a civil partnership.
Where a couple, whether same sex or opposite sex, is cohabiting other than as married or in a civil partnership, they are treated as separate and unconnected individuals for the purpose of income tax. Each partner is a separate entity for tax purposes. Such cohabiting couples cannot file joint assessment tax returns or share their tax credits and tax bands in the same manner as married couples or civil partners.
However, there is specific provision made for granting tax relief for maintenance payments if the cohabiting arrangement ceases, in circumstances where one cohabitant was previously in receipt of financial support from the other partner, similar to that provided between separated spouses. Section 1031Q of the Taxes Consolidation Act 1997 provides for tax relief in respect of legally enforceable maintenance arrangements made under section 75 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 with the person making the maintenance payment getting relief for the payment and the beneficiary being taxed on same. There is also Capital Gains tax relief for property transfers made on foot of such an arrangement.
43. Deputy Patrick O'Donovan asked the Minister for Finance in view of the decision taken by the Shannon Airport Authority to allow farming organisations to cut grass on property owned by it to help alleviate fodder shortages in the local area, if he will ask those agencies, companies, authorities, boards and so on who come within his remit to consider similar initiatives on suitable public lands owned by them in conjunction with representatives of local farming organisations; and if he will make a statement on the matter. [24937/13]
View answerIn response to the Deputy’s question there are no suitable bodies under the remit of my Department who could be of assistance in alleviating the current fodder shortage affecting the farming community.
