Written Answers Nos. 63-72
63. Deputy Peadar Tóibín asked the Minister for Finance if he will outline GVA for the most recent five years for which data is available; and the way GVA compares with Northern Ireland and Britain over this time period. [29745/13]
View answerThe table below sets out the value of gross value added (GVA) in the economies of Ireland, the UK, Northern Ireland and UK less Northern Ireland for the years 2007 to 2011 (the most recent available data).
|
- |
Gross Value Added (GVA) |
2007 |
2008 |
2009 |
2010 |
2011 |
|
Ireland |
GVA at Current Basic Prices (Euro Million) |
165,443 |
158,938 |
145,452 |
140,970 |
143,890 |
|
UK |
GVA at Current Basic Prices (GBP Million) |
1,231,272 |
1,258,369 |
1,238,808 |
1,281,268 |
1,310,190 |
|
NI |
GVA at Current Basic Prices (GBP Million) |
28,310 |
28,607 |
27,969 |
29,155 |
29,870 |
|
UK less NI |
GVA at Current Basic Prices (GBP Million) |
1,202,962 |
1,229,762 |
1,210,839 |
1,252,113 |
1,280,320 |
Source: CSO, ONS, Dept. Finance calculations
64. Deputy Michael McGrath asked the Minister for Finance if the State pension payment to a person and their spouse (details supplied) in County Cork is being correctly treated from an income taxation point of view; if the pension income should be treated as separate income for each spouse; and if he will make a statement on the matter. [29759/13]
View answerI am advised by the Revenue Commissioners that the payment in question is being treated correctly from an Income Tax perspective. The payment referred to is a combination of the State Contributory Pension (Personal Rate) amounting to €230.30 and a sum of €206.30, being the increase for a qualified dependent spouse. The Department of Social Protection (DSP) makes both payments to the individual, in receipt of the State Contributory Pension, and the individual alone is solely assessable to tax on this payment. The spouse in this situation is not in receipt of pension income from the DSP in their own right and therefore, is not subject to tax.
65. Deputy Michael McGrath asked the Minister for Finance the outstanding issues to be addressed in order that a person (details supplied) may be issued with a temporary tax clearance certificate; and if he will make a statement on the matter. [29768/13]
View answerI have been advised by the Revenue Commissioners that a Tax Clearance Certificate can only be issued to a person whose tax affairs are in order at the date of issue of that certificate. In relation to the particular case referred to by the Deputy, Revenue has advised the individual concerned of the reasons why it is not possible to issue a Tax Clearance Certificate at present. It will not be possible to issue a Certificate until outstanding compliance issues arising from tax debts involving the taxpayer are resolved.
66. Deputy Michelle Mulherin asked the Minister for Finance the position regarding a wine licence application in respect of a premises (details supplied) in County Mayo; and if he will make a statement on the matter. [29802/13]
View answerI am informed by the Revenue Commissioners that a valid application for a Wine Retailer’s On Licence was received in respect of this applicant on 2nd May 2013. There followed a 30-day statutory period, which allows for potential objections. As there was no objection in this case a pay-notice issued to the trader on June 18th. Once payment is received, and there is a valid tax clearance certificate in place, a licence will issue within 3-5 working days.
67. Deputy Terence Flanagan asked the Minister for Finance his plans to regulate fuel prices; and if he will make a statement on the matter. [29803/13]
View answerIreland, as with other countries, has experienced an increase in fuel prices. This increase is an international phenomenon. Fuel prices are driven by a number of factors including the price of oil on international markets, exchange rates, production costs and refining costs. The rise in oil prices over recent periods reflected additional factors such as geopolitical uncertainty in Northern Africa and the Middle East with potential supply disruptions.
The function of my Department in relation to fuel prices is confined to taxes imposed on fuel. In this regard, the Exchequer yield from excise, as excise is set at a nominal amount, does not increase as the price of fuels increase. On the other hand, the yield from VAT per litre of fuel, as VAT is set as a percentage of the price, increases as the price of fuels increase. It should be noted however that businesses are entitled to reclaim VAT incurred on their business inputs, including VAT incurred on fuel. For example, VAT incurred on auto-diesel and marked gas oil (MGO or green diesel) used in the course of business is a deductible credit for business in the Irish VAT system. There are no plans for taxation adjustments in this area as to do so could lead to significant costs to the Exchequer.
68. Deputy Sandra McLellan asked the Minister for Finance the reason insurance companies have a minimum insurance value of €120,000 for house insurance on residential properties even though some properties are worth as little as €30,000 and buyers are forced to pay for insurance at €120,000; if insurance companies are permitted to do this; and if he will make a statement on the matter. [29804/13]
View answerAt the outset the Deputy should note that neither I nor the Central bank has the power to set minimum or maximum levels of insurance cover as these are commercial decisions for firms to make themselves. Pricing of insurance is generally determined by an assessment an insurer will make of the risks involved. Generally I understand that previous claims experience will have a major influence on such matters.
I have made enquiries with the Central Bank of Ireland on this matter and they have informed me that the insurance cover for a house is based on the rebuild price of the house (excluding site cost) rather than the open market value of the property, which in the current environment is deflated. Finally, it should be noted that any person who has an unresolved complaint can refer the matter to the Financial Services Ombudsman, at www.financialombudsman.ie, for investigation and adjudication.
69. Deputy Michael McGrath asked the Minister for Finance if he will request the Central Bank of Ireland to commence collecting data from the 49 licensed moneylenders here regarding their number of active customers; the total amount of loans outstanding; the level of arrears; the number of restructured payment arrangements that have been entered into; and if he will make a statement on the matter. [29805/13]
View answerMoneylenders are licenced by the Central Bank of Ireland in accordance with the provisions of Part VIII of the Consumer Credit Act 1995 (as amended). Moneylenders have to apply to the Central Bank each year for renewal of the licence. In addition to the provisions of the Consumer Credit Act 1995, a licensed moneylender must comply with the provisions of the Consumer Protection Code for Licensed Moneylenders (the Code) and with the European Communities (Consumer Credit Agreements) Regulations 2010.
I have been advised by the Central Bank that, as at 29 May 2013, there are 43 licensed moneylenders with in excess of 350,000 customers. Financial data provided to the Central Bank throughout 2012 as part of the robust annual licensing process, showed that outstanding customer balances were approximately €200 million. The Central Bank does not currently receive data on the level of arrears or the number of restructured payment arrangements that have been entered into. It should be noted, however, that under section 112 of the Consumer Credit Act, 1995, moneylenders are prohibited from increasing charges for credit should a consumer be in a default position. The Central Bank has also informed me that they are in the process of conducting research into the moneylending industry and intends to publish the research findings later this year. On the issue more generally, the Central Bank maintains a register of all licensed moneylenders. Enhancements have recently been made to this Moneylenders Register which is available at www.centralbank.ie Consumers can now compare loans and use the interactive search function to search for loans available from all moneylenders, with different terms, APRs and costs of credit.
70. Deputy Michael McGrath asked the Minister for Finance the way he will ensure that rigorous costs benefit analysis is applied to investments undertaken by the new Ireland Strategic Investment Fund; when he expects the fund to be fully established; and if he will make a statement on the matter. [29806/13]
View answerAs announced last week, the Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the National Pensions Reserve Fund (NPRF) and whose resources will be channelled towards productive investment on commercial terms in the Irish economy. It is envisaged that decisions on the investment of the assets of the ISIF will be based on an investment strategy, consistent with Government policy objectives, which will address the sectors and range of assets to be considered for investment.
It is envisaged that the ISIF will seek to leverage and maximise its resources by attracting private sector co-investment. I am conscious that it is important that a level of independence is maintained in order to attract that private sector co-investment. To do this, the fund will need to demonstrate clearly that it acts on a commercial basis, so that the very fact that it is prepared to finance a proposal will reassure other potential investors that the project is sound. Officials of my Department are currently preparing the necessary legislation which I hope to see enacted this year.
71. Deputy Michael Healy-Rae asked the Minister for Finance if an amendment will be made to the Tax Consolidation Act 1997 that would 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. [29840/13]
View answerThe position is, as I have stated on many occasions in the House, that this issue was raised during the debates in the Seanad on 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.
72. Deputy Michael McGrath asked the Minister for Finance if he is seeking or has been offered a precautionary credit line for the period after Ireland completes the EU/ IMF programme; and if he will make a statement on the matter. [29841/13]
View answerAs the Deputy is aware, the EU-IMF Programme of Financial Support is envisaged to run to December this year. The Government’s focus is now firmly fixed on achieving a successful and durable exit from our programme and we are doing all we can to this end. We continue to meet our programme conditions and our strong implementation record has been recognised by our external partners and the financial markets. The highly successful sale of long term bonds by NTMA earlier this year is another very significant step towards regaining full market access.
Ireland will be the first country to exit an EU/IMF programme of this type. In this context, discussions on Ireland’s exit from the Programme took place during the recent 10th review mission and some further clarity on the possible options that might be available in terms of exit strategy was achieved. The issue will be considered further at the forthcoming reviews. All options that assist in supporting durable and sustainable future market funding will be considered in the light of what is appropriate for Ireland. In due course, this will require careful consideration by Government. No decisions have been taken to date by Government in this matter.
