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Tuesday, 28 May 2013

Written Answers Nos. 131-151

Teachers' Remuneration

Questions (131, 139)

Luke 'Ming' Flanagan

Question:

131. Deputy Luke 'Ming' Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will engage in discourse with ISM school in Tripoli, Libya, on the issue of payment of moneys owed by ISM to 17 Irish teachers; if his attention has been drawn to the fact that due to banking restrictions in Libya, ISM can only pay outstanding moneys into a Government bank account; if he will organise and facilitate a payment schedule on behalf of the 17 teachers since ISM cannot at this point issue individual payments; and if he will make a statement on the matter. [25633/13]

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Pádraig MacLochlainn

Question:

139. Deputy Pádraig Mac Lochlainn asked the Tánaiste and Minister for Foreign Affairs and Trade if he will make representations to the Libyan Government on behalf of 18 Irish teachers who are owed salaries totalling up to €200,000 by the Tripoli-based International School of the Martyrs. [25923/13]

View answer

Written answers

I propose to answer Questions Nos. 131 and 139 together.

I understand that the teachers’ dispute with the ISM in Tripoli has been ongoing for some time. The case, however, has only been brought to the attention of my Department recently. The issue is currently being handled by the Department of Education and Science and the State Examinations Commission (SEC), which has been in direct contact with the ISM in Tripoli regarding the unpaid monies. Officials from my Department have been in touch with the SEC regarding the matter and to offer whatever assistance may be considered helpful. The Irish Embassy in Rome, which is accredited to Libya, has also been kept fully informed of the situation and, at my direction, will make representations to both the Libyan government and to the International School of the Martyrs authorities seeking assistance and action to resolve this matter.

Undocumented Irish in the USA

Questions (132)

Andrew Doyle

Question:

132. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade the steps officials in his Department and the Embassy of Ireland in Washington DC are taking regarding the Immigration Bill that is currently before the US Senate, particularly on the issue of the possible ramifications it will have have on future J1 visas that many thousands of Irish college students avail of every summer; if new fees will be introduced on employers who would hire J1 students for the usual 12 week period; and if he will make a statement on the matter. [25748/13]

View answer

Written answers

The welfare of the Irish abroad in general, and especially the position of undocumented Irish immigrants in the United States, remains an important priority for the Government. The Government have also attached great importance to providing for future flows of migration between Ireland and the United States through the extension of the so called E3 visa scheme to include Irish citizens. The Government is continuing to follow closely the progress of the Senate bill on comprehensive immigration reform that is currently under consideration and which would address these issues. The Senate Immigration Reform Bill (S.744) is a very extensive piece of draft US legislation that contains a comprehensive and complex set of reforms across the US immigration system.

The Government has already welcomed the inclusion of provisions which would provide a solution for the undocumented Irish and opportunities for future flows of migration between our two countries. However, all of its provisions, including those in relation to the J1 programme, are at the early stage of the legislative process and it is too early to indicate the timing and final shape of any legislation. The Government greatly values the current provision of the J1 programme and believes it is important that the programme be as accessible as possible and that efforts be made to ensure high levels of uptake. Our Embassy in Washington remains in very close contact with the US Congress and the Administration to ensure that the interests of all Irish citizens are advanced in any immigration legislation that is passed.

Humanitarian Aid

Questions (133)

Andrew Doyle

Question:

133. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if he will give details of Ireland's potential role in the European Commission initiative that was announced in September 2012 regarding the European Voluntary Humanitarian Aid Corps; the way he envisages Irish citizens engaging with this initiative that is similar to the United States of America's Peace Corps; and if he will make a statement on the matter. [25852/13]

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Written answers

In September 2012, the European Commission launched its proposal for the establishment of the European Voluntary Humanitarian Aid Corps, as provided for under the Lisbon Treaty. This proposed programme, known as the EU Aid Volunteers Initiative, is aimed at strengthening the EU’s capacity to respond to humanitarian crises and at building the capacity and resilience of vulnerable communities. It also aims to provide training and experience to those interested in working in the humanitarian sector and to raise the levels of awareness and the visibility of the humanitarian assistance provided by the EU across the world. Ireland supports the establishment of a well-functioning, well-trained corps of humanitarian aid volunteers, through an initiative which responds to the needs of the humanitarian aid sector and of the people they seek to help on the ground. Throughout the course of our Presidency, we have been working closely with the Council and Commission to facilitate agreement on the Council position with a view to commencing discussions with the European Parliament, as co-legislator, on the text of the draft Regulation required to establish the legal basis for the initiative.

The EU Aid Volunteers Initiative is intended, inter alia, to offer opportunities to young Europeans with an interest in humanitarian assistance, but without sufficient experience to gain employment. Irish citizens will be afforded the same opportunity to apply to participate in this initiative as citizens of all other EU Member States.

At home here in Ireland, the Government’s Policy for International Development “One World, One Future”, which was launched earlier this month, sets out our commitment to modernise the way in which we support volunteering. One of the key ways in which this will be done will be through a new national Volunteering Initiative which will strengthen support for volunteering and promote participation in high quality volunteer programmes that contribute to development. The Volunteering Initiative will reflect needs in developing countries and increase volunteering opportunities for those who have those skills and experience that are in short supply in the developing world. Our commitment to work to enhance humanitarian volunteering opportunities at EU level for Irish citizens will also be an important component of the Volunteering Initiative.

EU Presidency Engagements

Questions (134)

Andrew Doyle

Question:

134. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if he will give details of the recent Western Balkans Conference that was recently held at Farmleigh; if he will provide the complete list of bilateral meetings that he had with EU member states and other non-EU member states; and if he will make a statement on the matter. [25857/13]

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Written answers

As part of the programme for the Irish Presidency of the Council of the EU, the Department of Foreign Affairs and Trade organised a conference entitled ‘10 Years after Thessaloniki: An appraisal of the EU perspective and challenges in the Western Balkans’ at Farmleigh on 24 May 2013. This event was co-sponsored by the Institute of International and European Affairs. The purpose of the Conference was to mark the tenth anniversary of the Thessaloniki Summit, which gave a formal political commitment on the part of all EU member states to the perspective of the Western Balkans states’ accession to the European Union, and adopted a concrete set of steps that would lead to this aim – the Thessaloniki Agenda.

The 10th anniversary of the Thessaloniki Summit marked an appropriate juncture at which to assess the results of Thessaloniki Agenda and to reflect on the progress made by the countries in the region towards EU integration, the difficulties encountered along the way, and the outlook for completion of the process. The Conference brought together leading politicians, senior officials, and experts on the region to analyse some of the challenges and fundamental questions that relate to the Western Balkans today. Topics addressed included the evolution of the accession process, the sustainable economic development of the Western Balkans, and the future of enlargement in the Western Balkans.

In the margins of this conference I held bilateral meetings with Ms. Vesna Pusi, First Deputy Prime Minister and Foreign Minister of Croatia, and with Dr. Miroslav Laják, Deputy Prime Minister and Minister for Foreign Affairs for Slovakia.

Trade Data

Questions (135)

John Deasy

Question:

135. Deputy John Deasy asked the Tánaiste and Minister for Foreign Affairs and Trade the level of trade with Vietnam in each of the past five years. [25905/13]

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Written answers

I visited Vietnam in October, 2012 to see the impact of the aid programme, to promote trade between our two countries and to support a number of Irish companies working in Vietnam. Ireland’s trade with Vietnam over the past five years has increased significantly, as outlined in the following table, based on figures from the Central Statistics Office:

-

Exports from Ireland to Vietnam (€m)

Exports from Ireland to Vietnam (€m)

Exports from Ireland to Vietnam (€m)

Imports to Ireland from Vietnam (€m)

Imports to Ireland from Vietnam (€m)

Imports to Ireland from Vietnam (€m)

Total Trade

Trade Balance

Year

Goods

Services

TOTAL

Goods

Services

TOTAL

(goods and services)

-

2008

47

16

63

90

2

92

155

-29

2009

51

24

75

74

3

77

152

-2

2010

46

29

75

77

4

81

156

-6

2011

62

35

97

86

5

91

188

6

2012

76

101

Between 2008 and 2011, the total value of trade between Ireland and Vietnam increased by over 21%, from €155 million to €188 million. Exports from Ireland have grown at a faster rate and, for the first time over this period, there was an overall trade balance in Ireland’s favour in 2011. While figures on the services side for 2012 are not yet available, it is expected that there will be a further increase on the 2011 levels. There was a significant increase in total trade in goods in 2012, to €177 million.

Vietnam is a country in transition. Our bilateral relationship focuses on the needs of the poorest communities and on providing economic expertise and developing stronger bilateral economic links. The trade figures demonstrate that we are making real progress in building stronger economic links with Vietnam, and that it has the potential to become a key economic partner for Ireland.

Departmental Staff Data

Questions (136)

John Deasy

Question:

136. Deputy John Deasy asked the Tánaiste and Minister for Foreign Affairs and Trade the number of diplomats, officials and staff currently working in our overseas embassies for each of the past five years. [25906/13]

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Written answers

The current staffing information requested by the Deputy is set out in the table. The figures take account of officers on secondment to the Department of Foreign Affairs and Trade whose salaries and other costs are in some cases borne by the parent Department or Office concerned. Also included is a small number of staff indirectly engaged through local employment agencies. It would be inordinately time consuming to compile directly comparable figures for the previous five years. However, in order to be helpful to the Deputy, I have noted in the table the significant changes that occurred in the period concerned. Programme staff employed locally by Irish development Missions and staff temporarily assigned to assist with the EU Presidency are excluded.

Mission

Current staffing complement

Number of Department of Foreign Affairs and Trade officers posted from HQ

Locally employed staff (Department of Foreign Affairs and Trade)

Comment, where relevant

Abu Dhabi

14

2

4

Mission established in 2009;

total includes 8 Department of Justice and Equality visa office staff.

Abuja

18

2

6

Total includes 10 Department of Justice and Equality visa office staff; local staff post suppressed.

Addis Ababa

9

5

4

Ankara

7

2

4

Third Secretary post currently vacant; total includes 1 Department of Justice and Equality visa office staff.

Athens

6.3

2

4.3

First Secretary post temporarily suppressed.

Atlanta

2

1

1

Mission established in 2010

Beijing

24

5

11

Total includes 8 Department of Justice and Equality visa office staff.

Berlin

12

5

6

Total includes 1 Department of Agriculture, Food and the Marine post.

Berne

5

2

3

Boston

4

1

3

Third Secretary post temporarily suppressed.

Brasilia

6

2

4

Bratislava

3

1

2

Third Secretary post suppressed; local staff post suppressed.

Brussels (Embassy)

14

4

4

First Secretary post transferred to Perm Rep;

includes Partnership for Peace Office;

total includes 6 staff from other Departments and Offices.

Brussels (PR-EU)

90

39

6

Clerical Officer post suppressed; total includes 45 staff from other Departments and Offices.

Bucharest

7

2

5

Budapest

6

2

4

Buenos Aires

5.4

2

3.4

Cairo

9

3

6

Canberra

9.5

2

7.5

Chicago

4.4

1

3.4

Third Secretary post temporarily suppressed.

Copenhagen

6.4

2

4.4

First Secretary post suppressed.

Dar-Es-Salaam

9

6

3

Edinburgh

3

2

1

Third Secretary post suppressed.

Edinburgh (BIC)

1

1

0

British Irish Council (BIC) secretariat established in 2012.

Freetown

4

3

1

Geneva

14

7

3

Total includes 4 officers from other Departments.

Hanoi

8

5

3

Helsinki

5

2

3

Kampala

9

5

4

Kuala Lumpur

7.5

2

5.5

Lisbon

5

2

3

Lilongwe

5

4

1

Senior Development Specialist post currently vacant.

Ljubljana

5

2

3

Local staff post suppressed.

London (including Passport office)

49.5

27

12.5

Certain passport functions and posts transferred to HQ and others suppressed including 23 local staff posts;

total includes 4 Department of Justice and Equality visa office staff and 6 officials from other Departments and offices; 3 Services Officer posts filled locally.

Lusaka

6

3

3

Luxembourg

5

1

4

Third Secretary post suppressed.

Madrid

14

3

9

First Secretary post currently vacant; EO post suppressed and filled locally; total includes 2 staff from other Departments and Offices.

Maputo

9

6

3

Maseru

4

2

2

Mexico

8

3

5

Moscow

20

5

8

EO post suppressed and filled locally; total includes 7 Department of Justice and Equality visa office staff.

New Delhi

17

3

6

Total includes 8 Department of Justice and Equality visa office staff.

New York - Consulate General

16

4

12

First Secretary post currently vacant; local staff post reassigned to Atlanta.

New York – PMUN

15

9

6

Development post added.

Nicosia

5

2

3

Oslo

5

2

3

Ottawa

7

2

5

Third Secretary post temporarily suppressed.

Paris

22

8

12

Includes Mission to the OECD and UNESCO; 1 Executive Officer and 1 Clerical Officer post suppressed; includes 2 officers from other Departments.

Prague

8

2

6

First Secretary post suppressed.

Pretoria

12

4

8

Part-time local staff post suppressed.

Ramallah

5

2

3

Riga

3

1

2

Third Secretary post suppressed; local staff post suppressed.

Riyadh

10

2

8

Third Secretary post transferred to Abu Dhabi.

Rome

12.8

3

8.8

First Secretary post suppressed; 1 local staff posts transferred from Embassy Holy See; total includes 1 officer from the Department of Agriculture, Food and the Marine; 1 local staff post suppressed.

San Francisco

4

1

3

Third Secretary post temporarily suppressed; local staff post suppressed.

Seoul

6

2

4

Shanghai

7

3

4

Singapore

7

2

4

Total includes 1 officer from the Department of Communications, Energy and Natural Resources.

Sofia

6

2

4

Stockholm

5

2

3

Strasbourg

6

2

3

Total includes 1 officer from the Department of Justice and Equality.

Sydney

5

2

3

Tallinn

3

1

2

Third Secretary post suppressed; local staff post suppressed.

Tel Aviv

5

2

3

Part-time local staff post suppressed.

The Hague

10

3

5

Total includes 2 officers from other Departments.

Tokyo

10

3

7

One local staff post suppressed.

Valletta

3

1

2

Vienna (Embassy)

8

3

5

Vienna (OSCE)

6

2

3

Total includes 1 officer from the Department of the Defence.

Vilnius

5

2

3

Warsaw

6

2

4

First Secretary post temporarily suppressed.

Washington DC

20

8

8

First Secretary post currently vacant; CO post suppressed and filled locally; total includes 4 officers from other Departments.

Foreign Conflicts

Questions (137)

Brendan Smith

Question:

137. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the progress made to date in the United Nations adopting a resolution in relation to the Syrian conflict following the statement issued by Secretary of State, Senator Kerry and the Russian Foreign Minister; and if he will make a statement on the matter. [25916/13]

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Written answers

More than two years after it first erupted, the conflict in Syria continues to be one of the greatest challenges confronting the international community. The dimensions of the crisis are truly daunting. An estimated 80,000 people have lost their lives; one-third of Syrians have either fled the country, are internally displaced or are otherwise in need of assistance; and there is an ever increasing threat to regional stability as mirrored by escalating tensions and violence in northern Lebanon and the recent horrific bombing in Reyhanli, southern Turkey in which fifty one people died. Since his appointment in August 2012 and in extremely challenging circumstances, the UN/League of Arab States Special Envoy Ladkhar Brahimi has shown great resolve in working to achieve these objectives. Ireland and its EU partners have expressed full support for his efforts, notably his search for a formula for transition based on last year’s Geneva Communiqué and providing for a transitional Government leading to free elections in Syria.

Special Envoy Brahimi has also long insisted on the crucial role of the international community in seeking a political settlement to the crisis, in particular through the UN Security Council. It is a source of great regret that the UN Security Council up to now has been unable to demonstrate leadership to the international community and adopt a strong Resolution on the crisis. Despite a number of unsuccessful efforts to agree a Resolution, it remains clear that only a united Council acting in concert can provide the necessary strong political backing to underpin any current peace efforts.

For this reason, I warmly welcome the agreement reached by the US and Russia, following bilateral discussions in Moscow earlier this month involving Secretary of State Kerry, President Putin and Foreign Minister Lavrov, to work together on an International Conference on Syria which would be held in Geneva in the next few weeks. Both UN Secretary General Ban and Special Envoy Brahimi have welcomed this development. The EU has also pledged its full political support for the US/Russian initiative. Conclusions adopted by the Foreign Affairs Council on 27 May which I attended made clear that the EU would spare no effort in helping to create the appropriate conditions for a successful convening of this conference.

There is an onus on all sides involved with this crisis to do all possible to support the planned Geneva II conference and endure a successful outcome. I understand the Syrian Government has now agreed in principle to attend the talks and it is to be hoped that the Syrian democratic opposition, led by the Syrian National Coalition, will seize the opportunity offered by the US-Russia proposal and engage fully in a process of dialogue aimed at ending the violence and starting the much needed transition towards democratic rule in Syria.

Ireland and the EU will remain fully occupied at all levels of our international engagement in securing the earliest cessation of violence in Syria and in providing the Syrian population with the aid and care they need and the hope that their nightmare will soon end.

Foreign Conflicts

Questions (138)

Brendan Smith

Question:

138. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has raised with the United Nations or in other international fora the urgent need for the international community to meet its commitments regarding humanitarian aid for Syria and that particular region; the level of humanitarian aid that has been provided to that region in relation to commitments made by the international community; and if he will make a statement on the matter. [25917/13]

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Written answers

At present, a total of 6.8 million people require immediate humanitarian assistance inside Syria. There are over 4 million Syrians who have been internally displaced, while a further 1.5 million people have been forced to abandon their country altogether. Countries hosting refugees, such as Jordan, Turkey, Iraq and Lebanon, are under great pressure as the influx continues. There are also grave concerns that the spread of disease could have catastrophic consequences as temperatures rise in the coming months. Ireland has already provided over €8.15 million in assistance to Syria and the wider region, making us one of the most generous donors to the humanitarian response on a per capita basis. This support from the Irish people has been provided through credible partners such as WFP, UNICEF and the International Committee of the Red Cross (ICRC).

As one of the founding members of the Good Humanitarian Donorship (GHD) initiative, Ireland is committed to acting as a responsible and accountable donor. We are also committed to the implementation of the European Consensus on Humanitarian Aid, which articulates the EU and its Member States’ commitment to ensuring that humanitarian aid pledges are met in a timely manner and are clearly linked to the needs of those most affected.

As part of our overall total support to the Syria crisis response, I pledged €4.7 million at the High-Level International Humanitarian Pledging Conference for Syria in January 2013. Since I made that commitment, Ireland has already surpassed it, with funding of €5.7 million having been provided to date this year. The UN plans for the humanitarian situation in Syria and its neighbouring countries requested a total of €1.5 billion. The pledges at the International Pledging Conference reached this amount but regrettably the international community has only provided funding valued at just over 70% of the pledged commitments to date. We are doing all we can to ensure that other States follow our example in meeting their promises in full and without delay.

During my visit to al-Zaatari refugee camp in northern Jordan in 2012 and the Tánaiste’s visit to Nizip refugee camp in southern Turkey in April this year, we both drew attention to the plight of Syrians and the urgency for global action to address their needs. As Presidency of the Council of European Union during the first half of 2013, we have also underlined the gravity of the humanitarian situation, including at the informal meeting of the Working Party on Humanitarian Aid and Food Aid (COHAFA) held in Dublin last month. We have also highlighted the dire humanitarian situation and the need for further donor support at the ‘Friends of Syria’ conferences in Paris, Tunis, Istanbul and Marrakesh and the ‘Syria Humanitarian Forum’ discussions in Geneva. When I meet Valerie Amos (Under Secretary General for Humanitarian Affairs and Emergency Relief Coordinator) in New York next week, I will raise this very serious humanitarian situation and discuss with her how we can all work together to achieve an effective humanitarian response.

As the Deputy will be aware, humanitarian needs are continuing to escalate, both within Syria and in neighbouring countries. Ireland will therefore continue to use every opportunity to put a spotlight on this deteriorating situation and emphasise the imperative for all of us to fulfil promises made to assist those worse affected by this conflict.

Question No.139 answered with Question No.131.

Tax Code

Questions (140, 151, 162, 168, 213)

John Lyons

Question:

140. Deputy John Lyons asked the Minister for Finance his plans to maintain the 9% VAT rate for tourism services such as restaurant meals and hotel accommodation, beyond the end of 2013, to build on the momentum of the Gathering Ireland festival; and if he will make a statement on the matter. [25218/13]

View answer

Andrew Doyle

Question:

151. Deputy Andrew Doyle asked the Minister for Finance the length of time that a 9% VAT rate will apply to the hospitality and tourism sectors in view of the positive impact it is having on promoting economic growth; and if he will make a statement on the matter. [25189/13]

View answer

Willie Penrose

Question:

162. Deputy Willie Penrose asked the Minister for Finance if he will ensure in the October budget to retain the VAT rate on restaurants and other key areas in the tourism industry at nine percent, which since he introduced it in 2011 has seen more that 6,000 new employment contracts issued and significantly more promised which is important in the context of economic recovery; and if he will make a statement on the matter. [25304/13]

View answer

Thomas P. Broughan

Question:

168. Deputy Thomas P. Broughan asked the Minister for Finance if he is considering retaining the current reduced rate of valued added tax for certain goods and services, such as restaurant and catering services and hotel and holiday accommodation, which is at 9% up until 31 December 2013, past this period in order that VAT will remain at a reduced rate into 2014 in view of the success of the measure in reviving the food and tourism industries; and if he will make a statement on the matter. [25423/13]

View answer

Seán Ó Fearghaíl

Question:

213. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will address the concerns raised in correspondence (details supplied) regarding the VAT rate; and if he will make a statement on the matter. [25953/13]

View answer

Written answers

I propose to answer Questions Nos. 140, 151, 162, 168 and 213 together.

Any proposals to maintain the 9% rate into 2014 will be considered in the context of Budget 2014.

Illegal Tobacco Trade

Questions (141)

Michael McNamara

Question:

141. Deputy Michael McNamara asked the Minister for Finance his views on the fact that the illegal importation of tobacco is treated as a relatively minor offence; if a serious crackdown on criminals involved will be undertaken in view of the legislative penalties currently in place; and if he will make a statement on the matter. [25529/13]

View answer

Written answers

I would like to assure the Deputy that the illegal importation of tobacco is not treated as a relatively minor offence. I am advised by the Revenue Commissioners that they view tobacco smuggling as a very serious matter, and that combating the illegal tobacco trade is, and will continue to be, a high priority for them. Their “Strategy on Combating the Illicit Tobacco trade (2011-2013) includes a wide range of measures that are designed to identify and target those engaged in the supply or sale of illicit tobacco products, with a view to seizing the illicit products and prosecuting those responsible. This multi-faceted strategy includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, the development of analytics and detection technologies, and ensuring optimum deployment of resources at both point of importation and within the country.

There is extensive cooperation with An Garda Síochána in combating the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland, through a cross-border group on tobacco enforcement, to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market.

Considerable success is being achieved against both the importation of illicit tobacco products and their sale within the country. Over 95 million cigarettes and more than 5 tonnes of tobacco were seized during 2012. In addition, there were 57 convictions for cigarette smuggling, resulting in the imposition of 26 custodial sentences, some suspended, and fines amounting to €93,550. Action against the illegal selling of cigarettes led to 75 convictions during the year, with 21 custodial sentences, some suspended, and total fines of €153,050.

The Revenue Commissioners assure me that they are committed to maintaining their extensive programme of action against all stages of the supply chain for illicit tobacco products, and that they will continue to make every effort to ensure that those involved in the illicit trade are brought to account before the Courts for their criminal activities. The penalties for smuggling tobacco products are laid down in section 119 of the Finance Act 2001, and penalties for the illegal sale of unstamped tobacco products are contained in section 78 of the Finance Act 2005.

Fines for tobacco offences under these acts were increased substantially in the Finance Act, 2010. On conviction following summary prosecution, under section 119 of the 2001 Act, a court may impose a fine of €5,000 and the court may also impose a term of imprisonment not exceeding 12 months, instead of, or in addition to, the fine. For convictions following prosecution on indictment, the fine is an amount not exceeding €126,970 or, where the value of the tobacco products involved in the offence is greater than €250,000, not exceeding three times the value of the products. The Court may also impose a term of imprisonment not exceeding 5 years, as an alternative to, or in addition to the fine.

In the case of a conviction under section 78 of the 2005 Act following a summary prosecution, a court may impose a fine of €5,000, or a term of imprisonment not exceeding 12 months, or both. The penalty following conviction on indictment is a fine not exceeding €126,970, or imprisonment for a term not exceeding 5 years, or both a fine and a prison term. The specific penalty to be imposed in any particular case is a matter for the courts. Section 130(2) of the 2001 Act permits a trial judge, in his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount mitigated is not greater than 50 per cent of the amount of the fine. There are no proposals for further penalty increases at present, but the position will be kept under review, taking account, among other considerations, of practical experience of the operation of the increased fines provided for in the 2010 Act.

Universal Social Charge Payments

Questions (142)

Bernard Durkan

Question:

142. Deputy Bernard J. Durkan asked the Minister for Finance if the universal social charge is or was deducted in the case a person (details supplied) in County Kildare; and if he will make a statement on the matter. [25613/13]

View answer

Written answers

I have been advised by the Revenue Commissioners, that based on the information available to them, the person concerned had no earnings since October 2011. During the tax year 2011, the Universal Social Charge (USC) was deducted by the person’s employer. The person’s 2011 USC liability has now been reviewed and a refund of the amount of USC over deducted will issue shortly to the person concerned.

Property Tax Administration

Questions (143)

Mattie McGrath

Question:

143. Deputy Mattie McGrath asked the Minister for Finance when the local property valuation bands are increased every €50,000, the reason there are no bands of 0-€50,000 and €50,000- €100,000; the option available to a person when their property is valued significantly below €100,000, that is, where a house is valued at €25,000, 0.18% would mean that the home owner should be paying €45 per annum but because there is no band of 0- €100,000, the home owner is expected to pay €90 per annum; and if he will make a statement on the matter. [25057/13]

View answer

Written answers

The bands used for the Local Property Tax (LPT) – an initial band of €0 to €100,000 and 18 bands of €50,000 width from €100,001 to €1 million – are those recommended by the Thornhill Group, the expert group which advised on the design of the tax. The grouping of properties into bands for property taxation purposes was also recommended by the 1982 and 2009 Commissions on Taxation. Grouping properties into valuation bands, with the rate applying at the mid-point of the bands – in effect creating fixed sum and certain charges for each band – can ease the valuation challenges. In devising the bands, a balance should be struck between the width of the bands and avoiding substantial liability differences between adjacent bands. The bands used for the LPT are much narrower than those suggested by the 2009 Commission on Taxation.

It is unavoidable that some individuals will benefit or lose no matter what bands are chosen, and narrower bands would make it more difficult for taxpayers to decide the correct band for their property. As the Deputy states, if the current first band of €0 to €100,000 was replaced by two €50,000 bands, this would lead to lower LPT payments for owners of properties valued below €50,000, which would pay tax at €45 in a full year (0.18% of €25,000, the mid point between €0 and €50,000). However, it would lead to higher LPT payments for properties valued between €50,001 and €100,000, which would pay tax of €135 in full year (0.18% of €75,000), rather than the current charge for all properties valued between €0 and €100,000 of €90 in a full year (0.18% of €50,000). The charge of €90 in a full year is below the Household Charge of €100 which was payable in 2012 in respect of all properties, including those valued below €50,000.

I am satisfied the current system of valuation bands strikes a good balance between ease of assessment and a smooth progression of liabilities between the valuation bands.

Global Remittances

Questions (144)

Niall Collins

Question:

144. Deputy Niall Collins asked the Minister for Finance if he has studied the World Bank report on global remittances; the level of discrepancies here with regard to per capita remittances; and if he will make a statement on the matter. [25092/13]

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Written answers

I assume that the Deputy is referring to recent newspaper reports regarding World Bank figures for Global Remittances in 2011. The World Bank Migration and Remittances Factbook for 2011 shows total remittance flows into Ireland of USD 755m and remittance outflows of USD 2, 843 m. The newspaper reports focussed in particular on the figure for remittances from Nigerians living in Ireland to Nigeria – USD 601m. This figure seemed disproportionately high in view of the reported size of the Nigerian population in Ireland and in view of the level of remittances from other nationalities to their home countries. I understand from the World Bank that the remittance figures relating to Nigeria are estimates provided to the World Bank by the Nigerian authorities and not actual data. These estimates are based on total remittance inflows reported by Nigeria allocated according to its estimated stock of emigrants and further adjusted by the World Bank in the light of differing national per capita income levels. The World Bank believes that some elements of the estimation process may not be reliable.

Neither the Central Statistics Office nor the Central Bank of Ireland publish statistics relating to remittance flows to individual countries. However, available information would indicate that the figures published in the World Bank Migration and Remittances Factbook in respect of remittance flows between Ireland and Nigeria are open to serious scrutiny and that the real figure may be a fraction of the published figure.

Money Advice and Budgeting Service

Questions (145)

Maureen O'Sullivan

Question:

145. Deputy Maureen O'Sullivan asked the Minister for Finance if the Money Advice and Budgeting Service is being considered for the pilot project of coordinated resolution of multiple debts and if its extensive experience of debt advice service here will be taken into consideration along with its principles of free, independent and confidential service and its community based presence across Ireland; if the UK based company Step Change is being considered for the pilot project as well; and if he will make a statement on the matter. [25118/13]

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Written answers

The Deputy may wish to note that I replied to a number of Parliamentary Questions on this issue in the House last week. The Central Bank has advised that it has been agreed among the lender participants to use an independent third party service provider as the most appropriate way to engage with borrowers, whose consent to participate will be sought and will be required in order to take part in the pilot. I am informed by the Central Bank that discussions are underway to determine the most appropriate provider and that no decision on this has yet been made. However, I also understand that an important consideration for the Central Bank in this matter, due to the short timelines involved, is the ability of the provider to provide an effective and efficient service at short notice.

Corporation Tax

Questions (146, 147, 148, 149, 150, 159, 160, 177)

Ciara Conway

Question:

146. Deputy Ciara Conway asked the Minister for Finance if he will provide details on the way companies other than Apple have had special arrangements with the Irish tax authorities to reduce their tax levels; if he will list these in tabular form; when these agreements were negotiated; by whom they were negotiated and under what authority; and if he will make a statement on the matter. [25183/13]

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Ciara Conway

Question:

147. Deputy Ciara Conway asked the Minister for Finance in respect of a special tax arrangement afforded to the Apple company, if any taxpayer can seek such a reduced tax arrangement; if he will give details on the mechanism and process for deciding the special tax rate that is paid; and if he will make a statement on the matter. [25184/13]

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Ciara Conway

Question:

148. Deputy Ciara Conway asked the Minister for Finance in respect of special tax arrangements afforded to Apple operations based here, if he will publish figures of the benefit to the Irish State of these tax arrangements; the amount the State would have stood to gain had normal tax rates been applied for each of the years this company has been operational here; and if he will make a statement on the matter. [25185/13]

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Ciara Conway

Question:

149. Deputy Ciara Conway asked the Minister for Finance if he will provide figures on the gains to the Exchequer as a result of special tax arrangements granted to foreign direct investors here for the past ten years, as against the gain that could have been incurred were normal tax rules to have been applied; and if he will make a statement on the matter. [25186/13]

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Ciara Conway

Question:

150. Deputy Ciara Conway asked the Minister for Finance in respect of the special arrangement afforded to the Apple company, the areas other than corporation tax that are open in the tax code for negotiation; and if he will make a statement on the matter. [25187/13]

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Pearse Doherty

Question:

159. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to any arrangement explicit or implicit that has been entered into with Apple in order to limit tax paid by the company here; if there is such an arrangement; if he will provide details of that arrangement including the length of time it has been operable; the amount it has cost the State; and the person that negotiated the arrangement and under what authority. [25298/13]

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Pearse Doherty

Question:

160. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to any arrangements with any multinational corporations based here which allows special treatment for tax purposes; if any MNCs have made representations to him or his Department to avail of special tax reliefs; if any other organisation including business representatives or tax consultancy and advisory firms have made an approach to him or his Department to either advise on tax measures for business or to request the special tax treatment of any business or group. [25299/13]

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Pearse Doherty

Question:

177. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to any tax incentive that was offered to Apple to enter Ireland in the 1980s; if so, if he will state what the incentive consisted of; and if he will confirm if other multinational corporations were offered incentives. [25524/13]

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Written answers

I propose to take Questions Nos. 146 to 150, inclusive, 159, 160 and 177 together.

As the Deputies are aware, owing to tax payer confidentiality I am only able to speak in general terms about this issue and matters that are already in the public domain. As the Taoiseach, the Tánaiste, numerous other Ministers, and I have explained already, there is no special tax rate deal done with any company. The Irish tax system is statute-based and therefore there is no possibility of special tax rate deals being done with companies. All companies in Ireland pay the standard 12.5% rate on their trading profits arising in Ireland. All companies here pay a corporation tax rate of 25% on their non trading income, and chargeable capital gains are taxable at the capital gains tax rate of 33%. These rates are set down in statute law and are not open to negotiation with taxpayers.

I am advised that Revenue, as a matter of course, engages with taxpayers, including multi-national companies, in order to provide clarity as to the application of Irish tax law. The objective is to ensure that the correct Irish tax is paid by these companies at the correct time and in accordance with Irish law.

In relation specifically to the question of any approaches or representations to me by any parties to request the “special tax treatment”, I would emphasise again that there is no possibility of “special tax treatment” for any taxpayer outside of what is provided for in legislation. Having said that, of course the Deputies are aware that during the budgetary process each year the Department engages with all stakeholders as part of the consultation process and the Department receives a wide variety of submissions from interested parties.

In relation to the issue of tax incentives that were generally available to all companies in the 1980s, I would refer the Deputy to the scheme of relief from corporation tax provided for in Part IV of the Corporation Tax Act, 1976 (Export Sales Relief) which expired on 5 April 1990. That relief provided for a reduction to nil of the corporation tax on profits from the export of goods manufactured in the State.

Export Sales Relief was withdrawn on a phased basis from 1980 to 1991 and was effectively replaced with a relief provided for in Chapter VI of the 1980 Finance Act (Manufacturing Relief), which provided for a reduction of the corporation tax to a rate of 10% on profits from the sale of goods manufactured in the State. Manufacturing Relief expired on 31st December 2010. The manufacturing scheme of relief was extended to activities carried out in the IFSC and ancillary services located in the Customs House Docks Area and to activities carried on in the Shannon Airport Area. Relief for these activities expired on 31 December 2005.

I would reiterate that all companies resident in Ireland are now chargeable to corporation tax at the 12.5% rate on the profits that are generated from their trading activities in Ireland. A higher 25% rate applies in respect of investment, rental and other non-trading profits. Chargeable capital gains are taxable at the capital gains tax rate of 33%.

Question No. 151 answered with Question No. 140.

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