Written Answers Nos. 201-211
201. Deputy Michael Healy-Rae asked the Minister for Finance the position regarding switcher mortgages on tracker rates for the various lenders and their current positions in relation to same (details supplied); and if he will make a statement on the matter. [37758/13]
View answerFirstly, I must confirm to the Deputy that the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities and, as such, it is a commercial decision for each lender to decide what products they will provide including switching mortgages and keeping tracker rates.
It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of mortgage holders.
The Deputy may wish to take up the matter with the Irish Bankers’ Federation.
202. Deputy Michael Healy-Rae asked the Minister for Finance his views on the plain packaging of cigarettes (details supplied); and if he will make a statement on the matter. [37787/13]
View answerThe introduction of plain packaging on tobacco products is a matter for the Department of Health.
However, with regard to those matters to which you have referred which are under the remit of my Department, among the factors to be considered in the context of forthcoming proposals for amendment of the EU Tobacco Products Directive will be the requirement that all cigarettes that are offered for sale in the State must carry a tax stamp containing a range of sophisticated security features designed to prevent counterfeiting. An examination of whether a pack of cigarettes carries a genuine tax stamp is a key means for Revenue officials to distinguish between legal and illegal products, and this will continue to be the case irrespective of the way in which cigarettes are packaged.
This in addition to other measures currently being employed by Revenue will continue to ensure that a high priority is given to smuggling of cigarettes and other tobacco products.
203. Deputy Brendan Ryan asked the Minister for Finance the average cost of public liability insurance here as compared to the average cost across the European Union; and if he will make a statement on the matter. [37797/13]
View answerNeither my Department nor the Central Bank of Ireland maintains information on the costs of public liability insurance in Ireland. Neither do we hold information on public liability insurance costs across the European Union.
I have contacted Insurance Ireland on this matter and they stated that they do not publish statistics on the average premium level. They also stated that an average cost of public liability insurance may be misleading as it would include the costs for both SMEs and large multi-national companies.
Annual premium rates are a commercial decision for the insurance company in question. Neither I, as Minister for Finance, nor the Central Bank of Ireland, can prohibit or restrict an insurance company from changing its rates.
204. Deputy Patrick O'Donovan asked the Minister for Finance the reason the local property tax deduction from a pension has not commenced in respect of a person (details supplied) in County Wexford; the action being taken to rectify this backlog; and if he will make a statement on the matter. [37804/13]
View answerI am advised by Revenue that arrangements for deduction of Local Property Tax (LPT) at source from payments made by the Department of Social Protection (DSP) were successfully implemented with effect from 1 July 2013 and all requests for this payment method have either been fully processed or, in a small number of cases, are being discussed by the liable person and Revenue where the automated deduction at source did not happen. For example, in the case to which the Deputy refers, deductions were delayed because the person in question is not a recipient of the DSP payment scheme selected by him on the LPT Return.
The information provided by those opting to pay LPT through deduction from a DSP payment scheme is electronically transferred between the computer systems of both offices. Revenue cannot validate the accuracy of the information in advance of the electronic file transfer and incorrect information is only identified when a transaction fails.
As soon as the transaction relating to the person in question failed, DSP identified the error and confirmed to Revenue the correct payment scheme details. Revenue then issued an amended deduction instruction on 25 July, the first LPT payment was deducted by DSP on 15 August and payments are being deducted on a weekly basis since. 15 August was the earliest possible date to commence deductions in line with the payment frequency schedules.
Revenue has written to the person in question assuring him that his LPT obligations are operating correctly.
205. Deputy Brendan Griffin asked the Minister for Finance the extra revenue that was generated by the €1 levy on wine in budget 2013; if he would provide in tabular form the 2010, 2011, 2012 and most recent 2013 figures for wine sales and the related State revenue; and if he will make a statement on the matter. [37813/13]
View answerI am informed by the Revenue Commissioners that the additional alcohol products tax yield from the Budget 2013 increase on wine is estimated at €45m for the period January to August 2013.
The alcohol products tax yield from wine for the years 2010, 2011, 2012 and the first eight months of 2013 is as follows:
|
- |
€m |
|
2010 |
218.8 |
|
2011 |
231.0 |
|
2012 |
231.4 |
|
2013 (Jan to Aug) |
174.8 |
The corresponding figures for VAT are not separately identifiable within the VAT receipts as the VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified.
Please note that the receipts shown for 2013 are provisional and are subject to revision.
206. Deputy Pearse Doherty asked the Minister for Finance if the introduction of last year's proposal to reduce the standard fund threshold for pensions, projected to raise in the region of €250 million, would impact on the savings that could be made by a proposal to standardise the pension tax relief rate and reduce the income linked pension ceiling to €70,000, projected to raise €555 million. [37814/13]
View answer207. Deputy Pearse Doherty asked the Minister for Finance the saving he expects to make in private pension tax reliefs from the introduction of last year's budget proposal to reduce the standard fund threshold for pensions, which will see people above the SFT losing their pension tax reliefs [37815/13]
View answerI propose to take Questions Nos. 206 and 207 together.
In my Budget 2013 speech, I announced that changes to give effect to the commitment in the Programme for Government to cap taxpayers’ subsidies for pension schemes which deliver pension income of more than €60,000 will be put in place in 2014.
An examination of the various options for change, including possible changes to the Standard Fund Threshold (SFT) regime, is continuing.
An estimated full year saving of €250 million was provided for in respect of these changes, as outlined on page A 10 of the Budget 2013 booklet. The Budget 2013 booklet makes clear, however, that the savings figure is provisional as further detailed analysis of the necessary changes and their impact would be required. That detailed analysis is ongoing.
Given that whatever changes are introduced to deliver on the Programme for Government commitment will further restrict the current scale of pension tax relief available to higher earners, it might be expected that such changes would have some impact on the scale of savings that might otherwise be achieved, for example, by a reduction in the rate of tax relief on pension contributions. However, as I have explained in previous replies to questions in this area, the estimated cost of tax relief on supplementary pension contributions and the estimated savings from any proposed changes to those reliefs are based largely on aggregate data and will vary according to a range of factors, including the scale of contributions made from year to year and the numbers making such contributions. In these circumstances, it will not be possible to isolate the impact of any particular change on those estimates.
In addition, and as stated in my Budget 2013 speech, tax relief on pension contributions will continue at the marginal rate.
209. Deputy Colm Keaveney asked the Minister for Finance if his Department has undertaken any study on the probability of the need for any future recapitalisation of Irish banks; his views on the likelihood of same; the progress that has been made on securing a commitment that any future recapitalisation will be provided by the European Central Bank or from some other European mechanism or body; his views on whether such a commitment will be reached; and if he will make a statement on the matter. [37864/13]
View answerThe Deputy will be aware that in preparation for the timely introduction of the Single Supervisory Mechanism (SSM) the Central Bank of Ireland (CBI), in consultation with staff of the EC, ECB and IMF, will conduct a stress test in accordance with the new EU methodology, ahead of and in close proximity to the upcoming SSM exercise.
The intention is to ensure that appropriate preparations are made early so that the Irish banks are in the strongest possible position to achieve the key goal for Ireland of a smooth entry into the SSM in 2014.
Consequently the Irish authorities have agreed with the Troika that detailed preparatory work required for the stress test will be completed in 2013. The Central Bank of Ireland, in consultation with the Troika, will 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.
It would not be appropriate to prejudge the outcome of this assessment and it should be noted that Irish banks remain well capitalised.
As the Deputy is aware on the 20th June 2013 the Eurogroup of Euro-area Finance Ministers agreed a framework under which the European Stability Mechanism (ESM) will operate its direct recapitalisation instrument. In addition the Eurogroup also agreed to consider retro-active recapitalisation of banks on a case-by-case basis once the instrument enters into force.
From a European perspective it is important to have this instrument available when EU-wide bank diagnostic exercises begin in the lead-up to the Single Supervisory Mechanism (SSM).
210. Deputy Michael Healy-Rae asked the Minister for Finance the reason for the difference in VAT rates (details supplied) [37894/13]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The difference in the rates mentioned by the Deputy relate to the different character of services as defined in VAT legislation.
The general position is that sports related coaching, such as golf and surfing lessons, are subject to VAT at the standard rate of 23%, in accordance with section 46(1)(a) of the Value Added Tax Consolidation Act 2010.
The provision of facilities for taking part in sporting activities, such as providing access to a golf course on payment of an annual fee or green fee, by a non-profit making organisation is liable to VAT at the second reduced rate, currently 9%, with effect from 1st July 2011. The application of the reduced rate to the provision of these facilities is provided for in paragraph 12 of Schedule 3 of the Value Added Tax Consolidation Act 2010 and is in compliance with paragraph 14 of Annex III of the EU VAT Directive.
211. Deputy Nicky McFadden asked the Minister for Finance if a system of auditing banks is in place to ensure that they are delivering on lending promises and targets; the body that oversees such an audit; and if he will make a statement on the matter. [37901/13]
View answerThe Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion in 2012 and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved the targets for 2011 and 2012.
One of the primary functions of the Credit Review Office (CRO) is to review the lending policies of the pillar banks, having regard to the SME lending targets set by Government as part of the recapitalisation exercise, and to report to myself on the progress of these policies. To this end, AIB and Bank of Ireland are required to submit their lending plans to my Department and the CRO at the beginning of each year, outlining how they intend to achieve their lending targets. Both banks also submit monthly returns which outline progress in terms of achieving the targets, as well as providing a breakdown of lending by sector and region. The banks also meet my Department and the CRO on a quarterly basis to discuss progress. The monthly management meetings with the two banks also provide a forum for the issue of SME lending to be raised by my Department.
In addition, the Credit Reviewer produces a quarterly report which comments on the progress of the banks in meeting their lending targets. The CRO twelfth quarterly report is due for publication in the coming weeks.
I have met the Boards of each of the banks in which the State has a shareholding three times since the start of this year. At these meetings, I have emphasised the importance of access to credit for SMEs and the need for an adequate flow of finance to be available to viable small businesses in Ireland.
