Tuesday, 16 Jul 2013

Written Answers Nos. 295-310

Tax Yield

Questions (295)

Derek Nolan

Question:

295. Deputy Derek Nolan asked the Minister for Finance the amount of revenue he expects to raise from the local property tax from July to December this year; and if he will make a statement on the matter. [35365/13]

Written answers

Minister for Finance

According to Budget estimates prepared by my Department the expected yield for 2013 from Local Property Tax is €250 million. I am advised by the Revenue Commissioners that they are confident that this amount will be achieved.

Departmental Functions

Questions (296)

Derek Nolan

Question:

296. Deputy Derek Nolan asked the Minister for Finance the steps he is taking to ensure that conditions do not exist for the re-emergence of a property bubble in the future; and if he will make a statement on the matter. [35366/13]

Written answers

Minister for Finance

While my Department does not attempt to target property prices, it does closely monitor the property and construction sectors as part of its remit for overall economic performance. In that context, my Department has recently established an inter-agency property group, which brings together key departments and agencies to consider the challenges and opportunities relating to the sector. More broadly, overall economic policy is oriented towards securing sustainable levels of growth over the medium to long term.

Departmental Functions

Questions (297)

Derek Nolan

Question:

297. Deputy Derek Nolan asked the Minister for Finance the analysis that has been done by his Department on the role played by the impact of high inflation, due to lack of control of interest rates, in creating the current economic crisis; the way his Department proposes to deal with a possible recurrence of such high inflation; and if he will make a statement on the matter. [35367/13]

Written answers

Minister for Finance

Ireland's inflation rate during the boom was high by European standards, with Ireland’s rate of HICP – the comparative measurement of inflation across Europe – on average 1.3 percentage points higher than the euro area average between 1999 and 2007. This served to erode Ireland’s competitiveness; making it more difficult for Irish firms to compete on the world stage and more vulnerable to external shocks. This manifested in a loss of Ireland’s share of world trade from 2002. Looking to the current situation, HICP inflation increased in Ireland by 0.7 per cent year-on-year in June and has averaged just 0.8 per cent over the first half of the year, compared to an average of 1.6 per cent in the euro area. Indeed Irish inflation has now been below, or on par with the euro area average for every month since March 2008. This has led to a significant improvement in economy-wide competitiveness over the period, with consumer prices having improved in relative terms by 14 percentage points compared to the euro area since 2008.

Looking to the future, my Department expects inflation to remain at modest rates for the next few years. Indeed, the European Commission expects Irish inflation rates to be below European rates in both 2013 and 2014.

Tax Credits

Questions (298)

Pearse Doherty

Question:

298. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 74 of 3 July 2013, if he will set out the increase in the effective tax rates that would be incurred if the measures set out in the Parliamentary Question were applied (details supplied). [35450/13]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the increases in the effective income tax rates, estimated by reference to 2013 incomes, that would be brought about by reducing the main personal income tax credits, but not the employee tax credit, in the manner mentioned by the Deputy in Parliamentary Question No. 74 (Ref Number 32383/13) of 3 July 2013 are set out in respect of each specified income range as follows:

Range of Gross Income.	Reduction in tax credits Increase in effective rates of income tax. Percentage points %
€100,000 to €150,000	+ 1.3
€150,001 to €200,000	+ 1.4
Over €200,000	+0.8

If the impact of a new third tax rate of 48% on taxable income over €100,000 is included with the reductions in tax credits already mentioned the corresponding combined increases in the effective income tax rates are estimated as follows:

Range of Gross Income	Reduction in tax credits and new top tax rate of 48% Increase in effective rates of income tax Percentage points%
€100,000 to €150,000	+ 1.7
€150,001 to €200,000	+ 2.8
Over €200,000	+ 4.6

The figures for increases in effective income tax rates are obtained by calculating the tax increases arising from the changes as a percentage of the total gross income of income earners in each of the specified income ranges.

It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2011.

These figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. They are therefore provisional and likely to be revised.

It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.

Budget 2014 Issues

Questions (299)

Brendan Griffin

Question:

299. Deputy Brendan Griffin asked the Minister for Finance if he will retain VAT at 9% for labour intensive services and tourism related services; if he recognises the considerable success of the reduction in VAT for such services in 2011; if he recognises that the State has benefited enormously from the provision of employment, the generation of extra economic activity and a reduction of pressures on the social protection system; and if he will make a statement on the matter. [35469/13]

Written answers

Minister for Finance

Any proposal to maintain the 9% VAT rate for tourism related services will be considered in the context of Budget 2014.

VAT Rates Reductions

Questions (300)

Brendan Griffin

Question:

300. Deputy Brendan Griffin asked the Minister for Finance if he will reduce the rate of VAT payable by ice cream parlours to 9% in recognition of the labour intensive nature of the business and the heavy dependency that such businesses have on tourism; and if he will make a statement on the matter. [35483/13]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the standard rate of VAT, currently 23%, applies to the sale of ice cream, as it does to most confectionery and sugary foods. In this respect, ice cream parlours selling ice cream to customers must charge the 23% rate on the supply of ice cream. A reduction in the VAT rate on ice cream would lead to pressure to apply a similar reduction to the wider confectionary and sugary foods area which would be costly to the Exchequer. I therefore have no plans to change the VAT treatment of ice cream sold by ice cream parlours.

I would point out that where ice cream is provided as part of a meal by a caterer, such as a restaurant, the meal, including the ice cream element, is liable to VAT at the 9% reduced VAT rate.

Tax Yield

Questions (301)

Maureen O'Sullivan

Question:

301. Deputy Maureen O'Sullivan asked the Minister for Finance the amount of corporation tax separately on trading income and on non-trading income that has been paid to the Exchequer by all manufacturers of prescription pain killer tablets in each of the past five years and the percentage of overall corporation tax paid by those manufacturers in each of the past five years. [35490/13]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that statistics are not available which would enable the information requested by the Deputy to be provided. Prescription pain killers are classified within the same economic sector as a wide range of other pharmaceutical products and could not be separately identified without conducting a protracted investigation of the Revenue Commissioners’ records with the commitment of significant resources.

Budget 2014 Issues

Questions (302)

Michael Healy-Rae

Question:

302. Deputy Michael Healy-Rae asked the Minister for Finance if he will introduce further measures which would help the sale of new cars by reducing the VRT tax and so on; and if he will make a statement on the matter. [35504/13]

Written answers

Minister for Finance

Any amendment in the VRT area will be considered in the context of the annual Budget.

Prize Bonds

Questions (303)

Patrick Nulty

Question:

303. Deputy Patrick Nulty asked the Minister for Finance if he will review the new anti-money laundering requirements for prize bonds costing more than €25; his views on raising this to €100 in view of the difficulties for persons who wish to give prize bonds as gifts, as has been a tradition in this country; and if he will make a statement on the matter. [35526/13]

Written answers

Minister for Finance

European legislation has been adopted to protect the financial system and certain professions and activities from being misused for money laundering and financing of terrorism purposes. The anti-money-laundering obligations applicable in Ireland derive from the Third EU Money-Laundering Directive. The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 was enacted in July 2010 to transpose the Third Money Laundering Directive (2005/60/EC) and its Implementing Directive (2006/70/EC) into Irish Law. Part 4 of the Criminal Justice Act 2010 sets out the obligations of “designated persons” in relation to customer identification. One such obligation set out in the Act is the obligation to conduct customer due diligence, prior to the establishment of a business relationship. Customer due diligence refers to the identification of customers and that of any beneficial owner of financial products associated with the customer.

An Post and the Prize Bond Company are deemed to be a "designated person" under the Criminal Justice Act 2010 as they fall within the definition of a "financial institution". In light of this, An Post and the Prize Bond Company are required to comply with the relevant provisions of the Act in relation to the sale of Prize Bonds to customers. This means, in practical terms, that customer due diligence must be conducted on all purchases of prize bonds, irrespective of value.

The extent to which any particular person or product may be exempted from the customer due diligence requirements of the Act is determined by reference to the Act having regard to the underlying Directives.

The Central Bank of Ireland has no discretion to exempt certain firms from the requirement to comply with the Act.

In light of the above, I am exploring with the National Treasury Management Agency (NTMA) and my colleague the Minister for Justice whether or not exemptions available under the Directives may be applied to small value purchases of prize bonds facilitated on behalf of the State by An Post and the Prize Bond Company.

Question No. 304 answered with Question No. 236.

Official Travel

Questions (305)

Derek Nolan

Question:

305. Deputy Derek Nolan asked the Minister for Finance if he is confident that all overseas travel undertaken by staff in State agencies is necessary; if the agencies ensure that there is a robust business case submitted before travel is sanctioned; if the agency ensures that the objective of the travel cannot be achieved through other means; if, on their return, the staff have to submit a report on the work carried out while they were on agency business overseas; and if he will make a statement on the matter. [36045/13]

Written answers

Minister for Finance

In response to the Deputy’s question agencies under the aegis of my Department have supplied me with the following information in regard to their policy regarding overseas travel undertaken by staff members on behalf of the agency concerned.

National Treasury Management Agency

Overseas travel by NTMA staff is an operational matter for the NTMA Chief Executive. The NTMA has business relationships with market participants across the range of its business activities and overseas travel is a necessary part of the performance of the NTMA's business functions.

Under the NTMA travel policy it is a duty of each Senior Executive to ensure that only essential travel is undertaken and that the number of persons travelling on official business is kept to a minimum, consistent with the needs of the business unit. They are required to ensure that all travel should be planned so as to reduce the total amount of travel to a minimum consistent with efficiency and that alternatives to travel, such as telephone conference calls or video conferencing be considered.

All overseas travel must be authorised in advance and the reasons for travel must be set out. Reporting on overseas business is carried out as part of the normal reporting of business activities.

The Irish Fiscal Advisory Council

The Irish Fiscal Advisory Council was established on a statutory basis on the 31 December 2012 under the Fiscal Responsibility Act 2012. The deputy should be aware that the Irish Fiscal Advisory Council is an independent body. The Fiscal Responsibility Act 2012 states that the Fiscal Council may regulate its own procedures and therefore matters relating to the overseas travel undertaken by that agency are a question for the Council themselves.

The Council have advised me that any staff travel undertaken is considered necessary and commensurate to business requirements. Approval is given for all travel and it is directly related to official business requirements. The Council have confirmed that travel undertaken is related to business meetings or training courses, the objective of which cannot be achieved through other means. Finally, the Council staff debrief colleagues on the work undertaken and the objectives achieved following their return.

Financial Services Ombudsman’s Bureau

Travel undertaken by staff of the Ombudsman's Office is undertaken only when required for business reasons. All potential travel is discussed with the Ombudsman before being undertaken. Individual staff representing the Bureau on business would always advise the Ombudsman of meetings attended.

Central Bank

Under the Central Bank Acts and the Statute governing the European System of Central Banks, the Central Bank is an independent institution not subject to the Minister for Finance or the Government in the discharge of its functions. The management of travel arrangements for the staff of the Bank is determined by the executive of the Board of the Bank.

Departmental Bodies

Questions (306)

Mary Lou McDonald

Question:

306. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide, in tabular form, a list of all non-commercial State-sponsored bodies under the aegis of his Department; and if he will make a statement on the matter. [36217/13]

Written answers

Minister for Finance

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

List of non-commercial State sponsored Bodies

Name of Body

National Treasury Management Agency

National Pensions Reserve Fund Commission

National Development Finance Agency

Credit Union Restructuring Board (ReBo)

In addition the New Economic and Recovery Authority has been set up on a non-statutory basis within the NTMA.

The State Claims Agency (SCA) carries out its functions through the NTMA.

Apprenticeship Programmes

Questions (307)

Bernard Durkan

Question:

307. Deputy Bernard J. Durkan asked the Minister for Education and Skills the extent to which a motor mechanic apprenticeship or alternative is available in the case of a person (details supplied) in County Kildare who has completed their leaving certificate and who is anxious to obtain placement as indicated; if there is a list of suitable sponsors, including with State-semi-State agencies; and if he will make a statement on the matter. [34320/13]

Written answers

Minister for Education and Skills

To become an apprentice, you must be at least 16 years of age and have a minimum of grade D in any five subjects in the Junior Certificate or equivalent. Where individuals do not meet the minimum requirements they may be registered as an apprentice by an employer if:

- they satisfactorily complete an approved preparatory training course and assessment interview or

- they are over 18 years of age with a minimum of three years relevant work experience and satisfactorily complete an assessment interview.

Apprentices must be employed and registered in their chosen occupation by an employer who has been approved by FÁS. Lists of approved employers are not released in general. Apprenticeship opportunities are advertised on Jobs Ireland. Jobs Ireland can be accessed easily and in a number of ways – through the Internet at www.jobsireland.ie or on special touch screen (WATIS) kiosks in Employment Services offices provided by the Department of Social Protection. Where State-Semi-State agencies instigate a recruitment plan for apprentices, these are generally advertised in the national newspapers.

School Transport Appeals

Questions (308)

Robert Troy

Question:

308. Deputy Robert Troy asked the Minister for Education and Skills if he will ensure that an appeal lodged by a person (details supplied) in County Westmeath is approved. [34421/13]

Written answers

Minister of State at the Department of Education and Skills

The case referred to by the Deputy, in the details supplied, has been the subject of an appeal to the School Transport Appeals Board. This Board is independent of my Department and I understand that the case was considered at their meeting of 20 June. The Board has informed the family directly of their determination on the matter.

School Transport Provision

Questions (309, 310)

Brian Walsh

Question:

309. Deputy Brian Walsh asked the Minister for Education and Skills the profit or loss incurred by Bus Éireann in respect of the provision of the school transport scheme each year since 2004. [34427/13]

Brian Walsh

Question:

310. Deputy Brian Walsh asked the Minister for Education and Skills if Bus Éireann's profit and loss accounts in respect of the school transport scheme will be made available for each year since 2004. [34428/13]

Written answers

Minister of State at the Department of Education and Skills

I propose to take Questions Nos. 309 and 310 together.

Bus Éireann, which operates school transport services on behalf of my Department, maintains a separate account for the School Transport Scheme. This account is audited each year by independent auditors and accounts in respect of the last number of years are available on my Department's website.