Tuesday, 18 Jun 2013

Written Answers Nos. 86-102

International Summits

Questions (86)

Clare Daly

Question:

86. Deputy Clare Daly asked the Minister for Finance if he attended the Bilderberg meeting; and the basis of his contribution to same. [28657/13]

Written answers

Minister for Finance

I did not attend the Bilderberg meeting.

Universal Social Charge Yield

Questions (87)

Patrick Nulty

Question:

87. Deputy Patrick Nulty asked the Minister for Finance if he will provide in tabular form the revenue or estimated revenue from the universal social charge for 2011, 2012 and 2013; and if he will make a statement on the matter. [28758/13]

Written answers

Minister for Finance

The data requested by the Deputy is listed in the following table. It is important to take into account that the figures displayed for 2011 and 2012 are based on end-year outturns and are on a Revenue Net Receipt basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing. The estimate for 2013 USC receipts is consistent with the forecasts underlying the recently published 2013 April Stability Programme Update.

-	2011	2012	2013
	€ billion	€ billion	€ billion
Universal Social Charge	3.1	3.8	4.0

Source: 2011 & 2012 figures are based on outturn, 2013 figure based on 2013 April SPU

Rounding may affect totals.

Public Relations Contracts Expenditure

Questions (88)

Billy Kelleher

Question:

88. Deputy Billy Kelleher asked the Minister for Finance if he will detail in tabular form, the names of all external public relations, communications consultants and organisations used by his Department since 9 March 2011; the details of the services supplied by each; the expenditure on each; and if he will make a statement on the matter. [28811/13]

Written answers

Minister for Finance

I take it that the Deputy is referring solely to public relations costs and not to advertising costs that would be incurred by my Department in the normal course of business, such as entries into telephone directories, the placing of advertisements in national newspapers, recruitment advertising, etc. In the period in question no such costs were incurred by my Department.

Universal Social Charge Application

Questions (89)

Eoghan Murphy

Question:

89. Deputy Eoghan Murphy asked the Minister for Finance if it is possible that some persons will end up paying the universal social charge on their pension twice (details supplied). [28829/13]

Written answers

Minister for Finance

The position is that the Universal Social Charge (USC) was introduced from 1 January 2011 to replace the Income Levy and the Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit. The USC is an annual tax payable on an individual's total income in a year, subject to a number of exemptions and reliefs. In particular, an individual is not liable to pay USC where his or her total income in the tax year does not exceed €10,036. In addition, payments from the Department of Social Protection such as the State Pension are exempt from the USC and such payments will not be taken into account in determining if an individual has exceeded the €10,036 threshold.

In addition, individuals in receipt of a full medical card or aged 70 and over, provided their total income does not exceed €60,000, are not liable to the top rate of charge.

In computing the USC payable in a year, contributions to a pension fund are not taken into account to reduce the amount of USC payable as would be the case with income tax. As such, the USC payable by an employee is charged on the person's gross income.

Pensions other than state pensions, made by any state or territory, form part of an individual's income for USC purposes.

Banking Sector Issues

Questions (90)

Stephen Donnelly

Question:

90. Deputy Stephen S. Donnelly asked the Minister for Finance based on the latest Fitch report citing the possible need for further recapitalisation of Irish banks, if he maintains his position, as outlined recently to the Oireachtas Joint Committee on Finance and Public Expenditure, that the Irish banks will not need further recapitalisation; and if he will make a statement on the matter. [28848/13]

Written answers

Minister for Finance

The timing of Ireland's next stress test is under discussion and no decision has been taken in this regard. The original timeline under the troika programme, which was linked to the EU wide EBA stress test timeline, is being adapted in light of the evolving calendar for the next EU-wide bank diagnostic exercises in the lead-up to the Single Supervisory Mechanism (SSM).

The intention is to ensure that appropriate preparations are made early so that the Irish banks are in the strongest possible position when the ECB fully assumes its supervisory role under the SSM. This is presently expected around mid-2014.

Consequently, the Irish authorities, in consultation with the troika, will this year conduct a series of diagnostics to provide greater clarity regarding the underlying quality of banks' balance sheets. A key element will be a comprehensive Balance Sheet Assessment to be finalised by end-November 2013.

The various preparatory supervisory steps that the authorities are undertaking will ensure that a stress test of the Irish banking sector will be conducted ahead of, but in close proximity to, the EU-wide exercise in 2014.

Speculating on the results of these tests is not very useful as the outcome of the tests will depend on the results of a comprehensive exercise, the parameters of which have yet to be agreed. However, as I stated at the Joint Committee on Finance Public Expenditure and Reform on 8th May 2013, at the current time, I have no evidence that the banks need more capital and they are very well capitalised.

Tax Code

Questions (91)

Billy Timmins

Question:

91. Deputy Billy Timmins asked the Minister for Finance his views on correspondence (details supplied) regarding the taxing of maternity benefit; and if he will make a statement on the matter. [28864/13]

Written answers

Minister for Finance

It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle, the majority of social welfare payments are reckonable as income for tax purposes. These include long-term payments such as Disablement Benefit, the State Pension, Widows, Invalidity and Blind Pensions, Carers Allowance and the One Parent Family Payment, as well as short term benefits such as Job Seekers Benefit. Treating these payments as income for tax purposes is essentially a matter of equity. As a result of maternity benefit payments becoming liable to income tax for all claimants, from 1 July 2013, a number of possible tax outcomes could arise:

1. An individual may pay no income tax on their maternity benefit payment as their tax credits will be sufficient to reduce their tax liability to zero.

2. An individual may pay income tax on some or all of their maternity benefit payment solely at the standard rate.

3. An individual may pay income tax at the standard rate on a portion of the maternity benefit and the higher rate on the balance of the maternity benefit payment.

4. An individual may pay income tax on all of their maternity benefit payment at the higher rate.

I am fully aware that some employers do not pay a top up payment to their employees whilst on maternity leave. However, in such circumstances many mothers will not be subject to income tax on their maternity benefit payments as their personal credits will ensure that no tax arises on the social welfare income itself. Of course, the extent, if any, to which taxation actually arises in a given case, depends on the total level of income that the individual or couple concerned has in the relevant tax year or years.

I would point out that maternity benefit payments will remain exempt from Universal Social Charge and PRSI.

Customs and Excise Staff

Questions (92, 93)

Tony McLoughlin

Question:

92. Deputy Tony McLoughlin asked the Minister for Finance the number of staff within the Customs and Excise section of Revenue in Custom House, Sligo that are detailed to investigate illegal narcotics and illegal drug importation; and if he will make a statement on the matter. [28946/13]

Tony McLoughlin

Question:

93. Deputy Tony McLoughlin asked the Minister for Finance the number of staff, full-time and part-time, in the Customs and Excise section of Revenue who are engaged solely in the detection and investigation of illegal drug importation that are based at sea ports and airports in the Sligo-Leitrim area; and if he will make a statement on the matter. [28947/13]

Written answers

Minister for Finance

I propose to take Questions Nos. 92 and 93 together.

I am advised by the Revenue Commissioners that their office is an integrated tax and customs administration and it is not feasible to disaggregate the staffing resources deployed exclusively on Customs and Excise or drugs enforcement work. The Revenue Commissioners have around 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These activities include anti-smuggling, audit, assurance checks, debt management, investigations, prosecutions and anti-avoidance. A total of approx 124 staff are engaged on these activities in the North West area.

The Revenue Commissioners have an enforcement presence at all key airports and ports and at other strategic locations and enforcement strength at particular locations is regularly augmented with additional personnel on a risk assessment basis, or when particular operations are taking place. The Deputy will appreciate that, for reasons of operational sensitivity, the Commissioners are not in a position to provide further details of enforcement deployment at any given location.

Appointments to State Boards

Questions (94)

Niall Collins

Question:

94. Deputy Niall Collins asked the Minister for Finance the number of appointments made to State boards under his Department's remit since March 2011; the number of positions that have been advertised; the number of applications to the boards; the number of appointments to the boards that were drawn from the applications; the current number of vacancies on each board; and if he will make a statement on the matter. [28976/13]

Written answers

Minister for Finance

The information requested by the Deputy is contained in the following table:

No of appointments since march 2011	No of vacancies advertised	No of applications received	No of appointments drawn from applications received	No of current vacancies
31	13	152	10	9

Excise Duties Collection

Questions (95)

Brendan Griffin

Question:

95. Deputy Brendan Griffin asked the Minister for Finance if he will consider further reducing the excise paid by microbrewers, defined as those breweries producing up to 20,000 hectolitres per annum; and if he will make a statement on the matter. [29017/13]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that Article 4 of Council Directive 92/83/EEC provides that a reduced rate of excise duty may be applied in Member States to beer produced in microbreweries subject to certain limits. It also provides that the reduced rate shall not be set at more than 50% below the standard national rate of excise duty for beer. Since 1 January 2005, Ireland has applied a relief of 50% for qualifying beer produced in microbreweries located within the European Union. The current rate of the relief is set at the maximum allowable under the EU legislative framework.

Tax Reliefs Availability

Questions (96, 101, 103)

Andrew Doyle

Question:

96. Deputy Andrew Doyle asked the Minister for Finance if recent discussions have taken place within his Department on amending the Taxes Consolidation Act 1997 and related acts to allow patients claim a reimbursement for physiotherapy expenses when they self refer; and if he will make a statement on the matter. [29160/13]

Willie Penrose

Question:

101. Deputy Willie Penrose asked the Minister for Finance if he is giving consideration to amending the Taxes Consolidation Act 1997 which would permit patients to claim reimbursement for physiotherapy expenses incurred by such patients when they self refer; if same will be brought forward in the October Budget; and if he will make a statement on the matter. [29299/13]

Aodhán Ó Ríordáin

Question:

103. Deputy Aodhán Ó Ríordáin asked the Minister for Finance if he has considered an amendment to the Taxes Consolidation Act 1997 to return to the situation whereby patients are allowed to claim reimbursement for physiotherapy expenses when they self refer; and if he will make a statement on the matter. [29402/13]

Written answers

Minister for Finance

I propose to take Questions Nos. 96, 101 and 103 together.

The position is, as I have stated on many occasions in the House, that this issue was raised during the debates in the Seanad on the Finance Bill 2013, during which I agreed to re-examine the matter during the course of this year.

My Department is currently in the process of examining the issue and when the analysis is completed and the findings are presented to me, I will make any necessary decisions in the context of Finance (No. 2) Bill 2013.

Banking Sector Issues

Questions (97)

Michael Healy-Rae

Question:

97. Deputy Michael Healy-Rae asked the Minister for Finance his views on reports that AIB will not be able to repay the €3.5 billion it owes to the State; and if he will make a statement on the matter. [29184/13]

Written answers

Minister for Finance

AIB's €3.5bn of preference shares are only part of the State's overall investment in the bank and they count towards the bank’s capital ratios. They are perpetual instruments and as such are not a loan in the sense of having a fixed maturity date. The decision to inject capital in the form of preference shares dates back to early 2009 and reflected economic and financial conditions as they were then. As the State now also owns 99.8% of the equity in the bank and a €1.6bn holding of contingent capital, these investments are best viewed and analysed on a holistic basis. To date no decision has been made to convert any of AIB's preference shares or indeed make any other changes to the bank’s capital structure. I remain very supportive of the bank’s efforts to return itself to profitability and ultimately generate an exit for the taxpayer from these investments in the years ahead. As such I will consider any sensible recommendations that are made to me in relation to the bank's capital structure that will help deliver these aims.

Tax Reliefs Availability

Questions (98, 100)

Joe McHugh

Question:

98. Deputy Joe McHugh asked the Minister for Finance the tax arrangements that apply in respect of the transfer of family farmlands; and if he will make a statement on the matter. [29219/13]

Seán Kyne

Question:

100. Deputy Seán Kyne asked the Minister for Finance his views on the continuation of favourable tax treatment to families involved in passing on family farms from one generation to the next particularly in view of how central such a policy is in sustaining the model of agriculture preferred here and in Europe and how central farms are to our rural communities. [29290/13]

Written answers

Minister for Finance

I propose to take Questions Nos. 98 and 100 together.

The importance of agriculture in the Irish economy is well recognised. In this context specific tax reliefs are provided where farms are passed on from one generation to the next. These reliefs include Capital Acquisitions Tax ("CAT") agricultural relief, Capital Gains Tax ("CGT") relief on transfer of farms to children and Stamp Duty Relief on family transfers and transfers to young trained farmers. These reliefs are summarised below.

Capital Acquisitions Tax

Capital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax.

While the passing on of family farms from one generation to the next by way of gift or inheritance can give rise to a charge to CAT, the following relief applies.

CAT Relief on Transfer of Agricultural Property

In order to qualify for this agricultural relief an individual receiving a gift or inheritance of agricultural property must qualify as a farmer. For the purpose of the relief a farmer is an individual at least 80% of whose assets constitute agricultural property.

CAT agricultural relief takes the form of a reduction in the market value of the agricultural property - currently by 90% - for the purposes of establishing the Group thresholds and determining whether or not a CAT liability arises on a transfer. This relief has increased over the years from an original reduction of 50% when CAT was introduced in 1975. The relief will be withdrawn if the agricultural property is sold or compulsorily acquired within six years of or, in certain circumstances, ten years of the gift or inheritance unless the proceeds are reinvested in other agricultural property.

The overall position as regards CAT is therefore, that parents can transfer a family farm with a market value of up to €2,250,000 to a child without any charge to CAT arising on the transfer, (assuming the child qualifies as a "farmer" under the 80% assets test) as the market value of the agricultural lands transferred would be reduced by 90% to €225,000 – this is the Group A threshold for transfers from parent to child for CAT purposes – to leave no CAT payable.

(This assumes that the child has received no prior gifts or inheritances from his or her parents).

The fact that farms with a market value of up to €2,250,000 can be transferred to a child without any charge to CAT arising reflects the Governments recognition of the central importance of agriculture to the overall economy and to the sustaining of rural communities.

Capital Gains Tax

Section 599 of the Taxes Consolidation Act 1997 provides for relief from capital gains tax ("CGT") on transfers of businesses or farms by parents to their children, subject to certain conditions being met. The meaning of "child" for the purposes of this relief is extended to include a child of a deceased child, a nephew or niece who has worked full-time in the business or farm for a period of 5 years prior to the disposal. It also includes a foster child who was under the care of and maintained at the expense of the individual making the disposal for a period of 5 years (or periods which together amounted to 5 years) up to the time such foster child reached the age of 18.

Broadly, the relief applies where the business or farm has been owned and used by an individual for business or farming purposes for a period of at least 10 years prior to the disposal. The relief is intended to encourage early transfer of businesses or farms from parents to their children. Accordingly:

- Full relief is available in the case of an individual aged 55 but under 66, who disposes of a business or farm to his or her child or a child of his or her civil partner.

- Full relief is also available in the case of an individual aged 66 or over who, on or before 31 December 2013, disposes of a business or farm to his or her child or a child of his or her civil partner.

- In relation to disposals made on or after 1 January 2014, where the individual making the disposal is aged 66 years or over full relief is available on disposals where the market value of the qualifying assets is €3 million or less. If the market value is over €3 million the relief is limited to the gain on an amount of €3 million.

Where an individual is disposing of land used for farming to his or her child and the consideration for its disposal consists in whole or in part of other land, the individual acquiring this other land will be treated as having acquired the land at the time and for the consideration that the child originally acquired it and to have farmed it for the same period that the child farmed it.

There is a provision for a clawback of the relief where the assets transferred to the child are disposed of by the child within 6 years of the date of transfer. In any such case, the capital gains tax which would have been charged on the transferor, if the relief had not applied, is assessed and charged on the child, in addition to the tax on any gain made by the child on his or her disposal of the assets.

Where a CAT charge and a CGT charge arise on the same event in relation to the same property the CGT is allowed as a credit against the CAT due. The credit is withdrawn where the asset is disposed of within two years of the gift or inheritance.

Stamp Duty

The transfer of farmlands normally attracts a charge to stamp duty at the rate of 2% on the market value of the lands transferred. A reduced rate of 1% applies in the case of a transfer, on or before 31 December 2014, where the transferee is related to the transferor in one of other of the following ways:

"as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or wife or brother or sister, or is, as respects the person or each of the persons immediately theretofore entitled, his or her civil partner, the civil partner of either of his or her parents or a lineal descendant of his or her civil partner"

There is also an exemption from stamp duty where the transferee is a young trained farmer. To qualify as a young trained farmer, the transferee must be under 35 years at the date of the transfer and must also be the holder of specified educational qualifications as set out in Section 81AA and Schedule 2, 2A and 2B of the Stamp Duties Consolidation Act 1999. This exemption applies where the transfer is executed on or before 31 December 2015.

Departmental Staff Sick Leave

Questions (99)

Barry Cowen

Question:

99. Deputy Barry Cowen asked the Minister for Finance if he will provide in tabular form the total number of uncertified sick days taken by employees in his Department; the average uncertified sick days per employee taken; the total certified sick days taken by employees; the average certified sick days per employee; the total sick days taken by employees; the average total sick days and median overall sick days per employee in 2009, 2010, 2011 and 2012. [29272/13]

Written answers

Minister for Finance

The following table outlines the sick leave position in my Department.

YEAR	Total Uncertified Sick Leave (USK)	USK average (headcount) i.e. Duration Actual / Active Staff Count of Name	Total Certified Sick Leave (CSK)	CSK average (headcount) i.e. Duration Actual / Active Staff Count of Name	Total Duration Actual	Total Duration Actual average (headcount) i.e. Actual Days Lost / Active Staff Count of Name	Median (Duration Actual values)
2009 *	532.26	0.82	3786.89	5.88	4319.15	6.71	2
2010 *	438.88	0.71	2800.54	4.56	3239.42	5.27	2
2011 *	301	1.15	3040.45	1.29	3341.45	1.27	1
2012	182.5	0.47	1560.76	3.99	1743.26	1.6335	1

Please note the figures for the years marked with * reflect the position prior to the establishment of the Department of Public Expenditure and Reform in 2011.

Question No. 100 answered with Question No. 98.

Question No. 101 answered with Question No. 96.

NAMA Board Recruitment

Questions (102)

Mattie McGrath

Question:

102. Deputy Mattie McGrath asked the Minister for Finance the way his Department can stand over the transparency, integrity and expertise of the original board of National Assets Management Agency when only 36 names from a pool of more than 800 applications emerged without any interview, notwithstanding the fact that the Department publically advertised for expressions of interest on the 3 of November 2009; and if he will make a statement on the matter. [29329/13]

Written answers

Minister for Finance

As the Deputy will understand, given the volume of applications received it was not possible to follow up individually on each expression of interest. However, the Department in conjunction with the Public Appointments Service undertook a rigorous process of assessing and shortlisting the expressions of interest received based on a number of different criteria. These criteria included evidenced considerable experience of a high quality and high level of responsibility in one or more of the fields listed in Section 19(2) of the NAMA Act 2009, experience in a senior position e.g. CEO or senior manager of a substantial company or public organisation, and an understanding of management of complex organisations and an absence of conflicts of interest. Following this process a list of 36 names emerged for further consideration.

In addition to these candidates the Minister also appointed board members from outside the shortlist who he felt had the relevant expertise and experience to contribute to the Board.