Written Answers Nos. 44-60
44. Deputy Lucinda Creighton asked the Taoiseach if he will detail in tabular form, for each year since 2003, the total cumulative amount in euro paid by his Department to companies (details supplied); and if he will make a statement on the matter. [48137/13]
View answerThe table below details the cumulative amount paid by my Department to the aforementioned companies from 2003 to date.
|
Year |
Name |
Amount paid in Year |
|
2004 |
McCann Fitzgerald |
€76,894.00 |
|
2010 |
McCann Fitzgerald |
€36,000.00 |
|
2012 |
Mason Hayes & Curran |
€298,555.00 |
|
2013 |
Arthur Cox |
€10,390.00 |
|
- |
William Fry |
€169,208.00 |
|
- |
Mason Hayes & Curran |
€99,917.00 |
Payments in 2012 and 2013 relate to the Moriarty Tribunal.
45. Deputy Lucinda Creighton asked the Taoiseach if he will provide in tabular form, for each year since 2003, the total cumulative amount in euro paid by his Department to senior counsel; and if he will make a statement on the matter. [48159/13]
View answerIn 2003 payments totalling €10,406 were made to Mr. Michael O'Higgins S.C. in relation to his work for Judge Barron's Commission of Inquiry into the Dublin and Monaghan bombings.
The following payments were made to Senior Counsel as part of their engagement in the Moriarty Tribunal Legal Team.
|
Name |
Period |
Amount |
|
John Coughlan |
2003 - 2010 |
€6,395,566.00 |
|
Jeremiah Healy |
2003 - 2011 |
€6,502,434.78 |
|
Jacqueline O'Brien |
2003 - 2011 |
€5,191,180.00 |
No payments were made after 2011 in respect of the Moriarty Tribunal as the legal team was wound down following the publication of the Judge's final report.
46. Deputy Seán Ó Fearghaíl asked the Taoiseach if a cost-benefit analysis has been undertaken by his Department on the impact of Ireland signing the Antarctic treaty; and if he will make a statement on the matter. [48327/13]
View answerThe question of Ireland’s signature and ratification of the Antarctic Treaty and related agreements comprising the Antarctic Treaty System (ATS) has been examined by the relevant Government Departments and Offices and by the Inter-Departmental Group on the Antarctic Treaty convened by the Department of Foreign Affairs and Trade. This analysis indicated that there would be no significant costs or benefits imposed on the Department of the Taoiseach, which has no function in the matter, so no formal cost benefit analysis was required or has been conducted by the Department.
47. Deputy Sandra McLellan asked the Taoiseach the numbers of visitors here from emerging tourism markets, in particular, China, India, Brazil, Russia and south-east Asia. [47111/13]
View answerThe following table shows the number of overseas trips to Ireland from China, India, Brazil, Russia and South East Asia for the years 2009 to 2012.
Table - OverseasTrips to Ireland by area of residence 2009-2012
|
- |
Brazil |
Russian Federation |
India |
Peoples Republic of China |
South East Asia |
|
2009 |
14,500 |
8,356 |
13,198 |
11,703 |
21,465 |
|
2010 |
17,787 |
8,215 |
13,219 |
10,472 |
24,335 |
|
2011 |
26,387 |
12,375 |
16,151 |
13,729 |
28,403 |
|
2012 |
26,162 |
11,286 |
18,659 |
15,386 |
25,166 |
Source: Overseas Travel - Central Statistics Office
Over the period 2009 to 2012 the largest increases in the number of overseas trips by area of residence were from Brazil (+80%), India (+41%), Russia (+35%), China (+31%) and South East Asia (+17%).
The data in respect of South East Asia covers the following countries: Cambodia, Lao People's Democratic Republic, Myanmar, Thailand, Vietnam, Brunei, Malaysia, East Timor, Indonesia, Philippines and Singapore.
Combined these countries/regions accounted for 96,659 overseas trips to Ireland in 2012, representing approximately 1.5% of the total number of overseas trips to Ireland in 2012 (6,517,200 trips).
48. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade his efforts to generate support in the American House of Representatives for the USA immigration reform Bill. [47708/13]
View answerThis is an issue to which I accord very high priority. During my visit to the US in September last, I spoke with several key contacts in the US Congress including Minority House Leader Nancy Pelosi and Chair of the Congressional Friends of Ireland, Pete King. I also spoke with leading Republican members of the House Judiciary Committee, Congressmen Mark Amodei, Spencer Bachus and Doug Collins.
In addition, I met with representatives of Irish community groups as well as some community members who are undocumented. I am acutely aware of the difficulties they face as a result of their undocumented status. I am more determined than ever to continue to work to find a solution to their plight.
A resolution of the situation facing the undocumented Irish in the United States remains a priority for the Government. The Government also attaches great importance to seeking provision for future flows of legal migration between Ireland and the United States through the extension of the “E-3” visa scheme to include Irish citizens. In this context, we very much welcomed the US Senate’s approval of the Border Security, Economic Opportunity and Immigration Modernization Bill by a 68-32 margin on 27 June last.
The comprehensive draft legislation, which was drafted over several months by a bi-partisan group of eight US Senators, provides for extensive reform of the US immigration system. It includes provisions that would legalise the status of undocumented Irish people and provide a path to permanent residency. It also provides for future flows of legal migration between Ireland and the US via the proposed E-3 visa.
The focus has since shifted to the House of Representatives for its consideration of the issues and a key factor here remains convincing the Republican House Majority of the importance of making progress.
It remains to be seen whether a consolidated Bill can be agreed between the Senate and the House of Representatives. It is generally accepted that securing overall agreement will remain a complex and challenging process, particularly at a time when Congress has been preoccupied by budgetary and debt issues. This was clear from my discussions in September and I believe the challenge to secure agreement has become even greater in recent times.
I am determined to continue to deploy all necessary resources at political, diplomatic and Irish community level to make progress on this vital issue. In support of this ongoing effort, a delegation of the Oireachtas Joint Committee on Foreign Affairs and Trade visited Washington DC last month for a programme arranged by our Embassy during which they met with key members of Congress and with Irish-American community representatives.
In addition to my contacts in New York in September, I visited Washington DC on 11-12 July and held a series of meetings on Capitol Hill, including with key members of the House of Representatives and Senate. These included Republican Congressman Paul Ryan, Chair of House Budgetary Committee and former Vice-Presidential nominee, and Republican Congressman Bob Goodlatte, Chair of the House Judiciary Committee.
I also had meetings with the offices of House Speaker John Boehner and of House Majority Whip Kevin McCarthy. In addition, I met key figures in the US Administration and with Irish-American community representatives.
I reiterated throughout all these contacts the Government’s interest in all aspects of immigration reform and in particular our interest in seeing an overall agreement reached which provides relief for currently undocumented Irish migrants and a facility for future flows of legal migration between Ireland and the US.
The Embassy in Washington continues our intensive follow-up work with all of our contacts on Capitol Hill and particularly with the Republican House leadership. It also continues to coordinate our lobbying efforts with our Irish-American community representatives.
I wish to acknowledge the critically important role being played by these community organisations, including the Ancient Order of Hibernians, the Chicago Celts for Immigration Reform and the Irish Lobby for Immigration Reform.
49. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on his engagements with Dr. Richard Haass. [47709/13]
View answerI met with Dr Richard Haass on 31 October in Iveagh House. We had met previously in New York on 25 September and have agreed to keep closely in touch. During our meetings, we discussed each of the issues that he has been asked to address by the Northern Ireland Executive including parades, flags and emblems and the past. Dr Haass has committed to concluding his work by December and, to that end, he has embarked on an ambitious programme of work. I am very supportive of the process of consultation with wider society undertaken by Dr Haass and his team. I believe that this is an essential component to a successful process.
I welcome Dr Haass’s decision to meet, whilst in Dublin, with an all-party delegation from the Oireachtas Joint Committee on the implementation of the Good Friday Agreement, members of the “15 Years on Group” who formed the steering Committee for the Reconciliation Networking Forum held in Dublin Castle on 30 October and representatives of the Ulster Council of the GAA.
The Government believes that the process presents an opportunity to reaffirm the commitments made throughout the hard-won peace process and to making further progress towards advancing reconciliation and the creation of a truly reconciled and prosperous society in Northern Ireland.
During our meetings to date, I have assured Dr Haass that he and his team have the full support of the Government in the pursuit of their work and that we are ready to assist them in any way we can. Dr Haass and I have agreed to remain in close contact and meet again in the coming weeks.
50. Deputy John Halligan asked the Tánaiste and Minister for Foreign Affairs and Trade if he has intervened with the Egyptian Government to demand the release of four Irish citizens who are being held in an Egyptian prison; and if he will make a statement on the matter. [47710/13]
View answerI wish to inform the Deputy that the Embassy of Ireland in Cairo has provided consular assistance to the four citizens in question since their initial detention in Egypt on 17 August 2013. The Egyptian authorities are still reviewing this case. A decision to extend their period of detention for a further fifteen days was taken initially on 1 September and again on 14 September to allow more time for investigations to be completed. On 29 September, their detention was extended for a further 45 days. I understand that they are due in court today for a review of the detention orders.
I raised their situation with the Egyptian Foreign Minister yesterday, 11 November, during a telephone conversation. I expressed my concern at the length of their detention, the uncertainty surrounding the specific charges against the siblings and the length of time that it was taking for a decision to be made as to whether they would be tried or released. I also expressed our sincere hope and expectation that the situation will be brought to a satisfactory conclusion in the near future. It would be inappropriate, however, for the Government to demand their release as this would constitute interference in the judicial process of another country.
The Embassy is in regular contact with the appropriate Egyptian authorities. Ambassador Moylan called on the Assistant Minister for Consular Affairs at the Foreign Ministry on 22 September to discuss the case and on 10 October she met with officials from the Ministry of Justice. On 22 October she met with the Office of the Prosecutor General in Cairo.
Since their detention the Embassy has been allowed consular access to the siblings on a number of occasions. The first consular visit took place on 20 August. Further consular visits were made to one sibling on 24 August, 8 September, 15 September, 10 October, 24 October, 30 October and 10 November and to the three sisters on the 25 August, 5 September, 18 September, 13 October, 24 October, 30 October and 10 November.
Consular officials in Dublin met with family representatives, on 17 August, 19 September and 24 October 2013 and continually update them on all developments in the case. However, the family has been made aware of the limitations faced by the Embassy in such cases and that we are prohibited from becoming involved in legal matters which is a matter for their legal representation.
The Department of Foreign Affairs and Trade continues to advise Irish citizens to avoid non-essential travel to Egypt at this time. If, against our advice, Irish citizens decide to travel to Egypt they should register their travel and contact details with the Department via their website.
51. Deputy Eoghan Murphy asked the Tánaiste and Minister for Foreign Affairs and Trade further to Parliamentary Question No. 130 of 8 October, if he will publish a new roster in 2014; if the current roster will be amended in any way before a new roster is brought in; if any additions can be made to the existing roster; and if not what those persons interested in participating in observation missions should do in the interim. [47783/13]
View answerInternational election monitoring missions play an important role in the promotion of democracy and human rights. The Department of Foreign Affairs and Trade maintains and administers a roster of observers for such missions. The aim is to ensure that, when requested, Ireland is represented at an appropriate level in international observation missions for both elections and constitutional referendums.
The Department carried out a comprehensive review of the election observation roster earlier this year. Following a public call for applications, and an appraisal process against published criteria, 200 individuals with a strong mix of skills and experience were selected to serve on a new roster. This new roster came into effect on 15 May 2013 for a period of five years. A reserve panel was established from which applicants will be drawn should any roster members leave the roster during the five year period.
The Department nominates roster members to participate in missions organised mainly by the European Union and the Organisation for Security and Cooperation in Europe. These nominations are made following invitation by the organisations concerned. A number of international organisations, including the Carter Centre, the National Democratic Institute and the International Foundation for Electoral Systems, also recruit directly for participation in election monitoring. It is open to persons interested in participating in such missions, who are not on the Department’s roster, to apply directly to these organizations if they are interested in participating in their missions.
52. Deputy Lucinda Creighton asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide in tabular form, for each year since 2003, the total cumulative amount in euro paid by his Department for non-audit services to companies (details supplied); and if he will make a statement on the matter. [48112/13]
View answerMy Department is responsible for two Votes: Vote 28 - Foreign Affairs and Trade; and Vote 27 - International Cooperation. Payments from both Votes to the firms listed in the Deputy’s question are set out below.
Summary of Payments in €000's
|
- |
- |
- |
Firm |
|
Year |
PwC (Ireland) |
KPMG (Ireland) |
Deloitte (Ireland) |
|
2003 |
- |
- |
16 |
|
2004 |
- |
- |
13 |
|
2008 |
1 |
71 |
- |
It should be noted that the Department’s Financial Management System for Vote 28 was introduced with effect from 2005 and that data prior to 2005 is not readily available electronically. Accordingly, it was not possible in the time available to perform a complete and definitive check of payments under Vote 28 prior to 2005.
On a related point, since 2007, under Vote 27, Ireland has contributed to a multi donor funded mechanism supporting the civil society sector in Uganda. Deloitte Uganda acts as the financial management agency to the fund. Ireland’s cumulative contribution to the fund since 2007 was €30.98 million.
53. Deputy Lucinda Creighton asked the Tánaiste and Minister for Foreign Affairs and Trade if he will detail in tabular form, for each year since 2003, the total cumulative amount in euro paid by his Department to companies (details supplied); and if he will make a statement on the matter. [48131/13]
View answerThe Department generally seeks advice on domestic legal matters from the Office of the Attorney General and/or the Chief State Solicitor’s Office. Depending on the subject-matter, litigation is dealt with on my Department’s behalf by the Attorney General’s Office, the Chief State Solicitor’s Office or the State Claims Agency which engage lawyers to act for the Department where necessary.
However, there are occasions when external legal services must be engaged for particular requirements and I have set out in the table below the total cumulative amount in euro paid by my Department since 2005 to companies on the list provided. Complete financial data prior to 2005 is not available electronically from the Department’s financial management system, and search and retrieval of archived paper files was not possible in the time available.
|
Company |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
Total |
|
Matheson |
0 |
0 |
1,230 |
0 |
0 |
0 |
0 |
0 |
0 |
1,230 |
|
Mason Hayes & Curran |
135,134 |
130,294 |
1,356 |
0 |
0 |
0 |
0 |
0 |
0 |
266,784 |
54. Deputy Lucinda Creighton asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide in tabular form, for each year since 2003, the total cumulative amount in euro paid by his Department to senior counsel; and if he will make a statement on the matter. [48155/13]
View answerMy Department generally seeks advice on domestic legal matters from the Office of the Attorney General and/or the Chief State Solicitor’s Office. Depending on the subject-matter, litigation is dealt with on my Department’s behalf by the Attorney General’s Office, the Chief State Solicitor’s Office or the State Claims Agency which engage lawyers to act for the Department where necessary, including for personal injuries claims and other matters. The costs of any external solicitors or counsel engaged for such matters are not charged to my Department’s Votes.
55. Deputy Robert Troy asked the Tánaiste and Minister for Foreign Affairs and Trade the projects that have developed or the differences that have occurred in Ireland's programme countries as a result of direct foreign aid by Ireland (details supplied); and if he will make a statement on the matter. [48246/13]
View answerThrough the Government’s development cooperation programme, Ireland is committed to providing long term strategic assistance to nine key partner countries. Working in partnership with other donors and with Governments in our partner countries, Ireland has made a significant contribution to development and the fight against poverty. In the past decade there have been important improvements in human development in each of our partner countries, as measured by the UN Human Development Index.
The media can be a powerful force for positive change and democratic transformation in our partner countries. It plays an important role in advancing a pro-poor development agenda, enhancing domestic accountability and tracking the effectiveness of international development cooperation.
Ireland provides support to media organisations in a number of our partner countries. In Tanzania, for example, support is provided to the Tanzania Media Fund (TMF) which provides grants to media professionals and institutions in order to improve journalism standards, including investigative journalism. From 2008 to 2012, TMF provided assistance to more than 400 media organisations and journalists and reported important quality improvements and accountability impacts from its interventions.
In Zambia, support is provided to the Media Institute of Southern Africa to support community radio stations, a source of over 80% of Zambians’ current affairs information and an important tool for enhancing domestic accountability. Through this work, media freedom is promoted and citizens, even those in the remotest parts of the country, have access to information.
The Government’s new policy for international development, One World, One Future, launched earlier this year, recognises the powerful role a diverse, pluralistic and professional media environment can have in providing access to information and debate, and in ensuring the enjoyment of the right to freedom of expression as recognised in international human rights law. The policy highlights the important contribution media can make in holding Governments to account and includes a commitment to support initiatives that can strengthen their role in key partner countries.
56. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade if a cost-benefit analysis has been undertaken by his Department on the impact of Ireland signing the Antarctic treaty; and if he will make a statement on the matter. [48321/13]
View answerThe question of Ireland’s signature and ratification of the Antarctic Treaty and related agreements comprising the Antarctic Treaty System (ATS) has been examined in some detail by the Government Departments and Offices concerned. The Antarctic Treaty System comprises the Antarctic Treaty, the Convention on the Conservation of Antarctic Marine Living Resources (“CCAMLR”), the Convention for the Conservation of Antarctic Seals 1972 (“CCAS”) and the Madrid Protocol on Environmental Protection 1991 (“the Protocol”).
Preparation for signature and ratification by Ireland would impose substantial administrative burdens on several Government Departments. In the case of the Department of Foreign Affairs and Trade this would include the co-ordination of the national approach to accession negotiations via the Inter-Departmental Group on the Antarctic Treaty, the preparation and submission of the relevant Memorandum to Government and other legal instruments necessary for ratification. Subsequent to ratification, the Department of Foreign Affairs and Trade would have responsibility for coordinating the servicing of any meetings of States Parties or related events and conferences.
Though no formal cost benefit analysis has been undertaken on the impact of adherence to the Antarctic Treaty, the associated administrative burden would be substantial with the process not providing any significant practical benefit. While the objectives and achievements of the ATS are of considerable importance and the commitment of the signatories is to be commended, Government Departments, including my own, have to concentrate their diminishing resources on their core business and areas of priority national interest and concern and are not in a position to assume the administrative burden associated with the ATS signature and ratification process and ensuing treaty obligations at the present time.
57. Deputy Terence Flanagan asked the Minister for Finance if he will outline details of the 25 new measures that will be introduced to support entrepreneurs to create jobs and support small and medium enterprises as announced in budget 2014; and if he will make a statement on the matter. [47749/13]
View answerI would inform the Deputy that details of the 25 measures for jobs and growth that I announced in Budget 2014 are set out in Annex C of the Budget book. Full details of the budget are also available on my Department’s website (www.budget.gov.ie). I have set out a copy of Annex C for the Deputy’s convenience.
ANNEX C
€500m TAX PACKAGE BUILDING BUSINESS AND CREATING JOBS
25 MEASURES FOR JOBS AND GROWTH
Jobs and Growth remain the top priority. New businesses tend to be the greatest contributors to job creation. For new business success it is necessary to incentivise entrepreneurship, innovation and investment. Existing small businesses also require support to grow and create jobs. Access to credit and finance for SMEs is vital for economic growth and is central to Ireland’s continuing recovery.
Entrepreneurship is a powerful driver of economic growth and job creation. It creates new companies and jobs, opens up new markets, and nurtures new skills and capabilities.
Innovation accounts for about two thirds of the sources of economic growth and innovative firms tend to be the greatest contributors to job creation. Investment is essential for the survival and growth of Small and Medium Enterprises. Credit and Finance - ensuring enterprises and in particular SMEs have access to an appropriate flow of finance from a diverse range of sources - is a major policy issue. Opportunity - small and new business needs the opportunity to grow and flourish. To that end it is important to create a level playing field for legitimate business by tackling unfair competition from the shadow economy.
A package of 25 measures has been developed which focuses on the business drivers outlined above in order to realise the maximum benefit from the minimum cost.
The 25 measures with their intended targets are outlined below:
Promoting Entrepreneurship
1. Capital Gains Tax Relief for re-investment of previous asset disposals in productive assets
The measure applies where an individual makes an investment in assets for use in a new productive trading activity in the period 1 January 2014 to 31 December 2018 and subsequently disposes of this investment no earlier than three years after the date of investment. The CGT payable on the disposal of this new investment will be reduced by the lower of the CGT paid by the individual on a previous disposal in the period from 1 January 2010 and 50% of the CGT due on the disposal of the new investment.
Target: To encourage individuals to re-invest the proceeds of a previous asset disposal into new productive trading or a new company and therefore to encourage new business and to keep capital focussed on business and the creation and maintenance of employment.
2. Start Your Own Business (SYOB)
This measure is being introduced to encourage individuals who are long-term unemployed to start their own unincorporated business. A two year exemption from income tax up to a maximum of €40,000 per annum is being provided for individuals who have been unemployed for at least 15 months prior to starting their own business.
Target: To encourage individuals to move from unemployment to self-employment.
Stimulating Investment
3. Enhancement of Employment and Investment Incentive
The initial 30% relief available for investments under the Employment and Investment Incentive is being removed from the high earners restriction for a period of 3 years. This restriction limits the amount of tax reliefs that can be claimed by high income individuals. The EII provides that a maximum of €150,000 can be invested by an individual per annum. Therefore, by lifting the restriction on the initial 30% relief, these investors should be encouraged to invest more funds in the EII and improve the availability of funds to SMEs.
Target: To increase investment in Irish SMEs that are focused on job creation and expansion.
4. Enterprise Securities Market – Transfers exempt from Stamp Duty
This proposal involves removal of the Stamp Duty charge (currently 1%) on shares listed on the Enterprise Securities Market (ESM) of the Irish Stock Exchange (ISE). The ESM is the ISE’s market for growth companies. It has been specifically designed to meet the funding needs of companies at earlier stages in their development.
Target: It is intended to encourage more investors to back SMEs, thereby increasing the supply of equity available to them for growth and job creation. It may also encourage entrepreneurs and growing businesses to use the ESM to aid growth and job creation.
5. Inclusion of Real Estate Investment Trusts (REITs) in the Immigrant Investor Programme
Following the successful launch of the REIT product in Ireland it has been agreed with the Department of Justice to propose the inclusion of REITs as an investment option in the Immigrant Investor Programme.
Target: To encourage investment in REITs.
Financing Growth
6. Trade Finance
The Trade Finance Initiative would involve a tailored measure to support the growth of the export sector in Ireland thereby increasing investment, economic activity and employment. Discussions are taking place with the EIB to consider the feasibility of support being granted by the bank to underpin additional trade by Irish companies.
Target: To assist Irish exporters and businesses to increase exports and grow.
7. Credit Review Office – Increase Threshold
Increase in the threshold for applications that can be reviewed by the Credit Review Office from €500,000 to €3m. The increase in the number of reviewers sanctioned in Budget 2013 will ensure that the increased workload arising from this measure will be handled in a timely and comprehensive manner.
Target: To meet new lending demands from borrowers currently banked with non-trading banks and banks which are strategically exiting the Irish SME lending market.
8. SME Communications Strategy
Communication strategy to increase awareness of State supports amongst SMEs. This strategy will also ensure that there is a greater awareness amongst businesses of the soon to be re-launched credit guarantee scheme.
Target: To inform SMEs who are eligible for State supports but may not be aware of it or how to go about obtaining it.
9. Building Business Capacity
A programme, consisting of 2 days dedicated off site training together with expert mentoring support, to enhance SMEs business and financial capacity in relation to understanding and utilising a broader range of financial products, as well as equipping them with the necessary tools to make a strong business case when applying for credit. The programme will be launched on a pilot basis with 1,000 SMEs taking part next year.
Target: To assist micro and small business to grow.
Encouraging Innovation
10. Research and Development Tax Credit - Outsourcing
The limits on the amount of expenditure on R&D outsourced to third parties which can qualify for the R&D Tax Credit is being increased from 10% to 15%.
Target: This should help to assist small companies in performing R&D, as they are more likely to need to outsource because they may have insufficient resources in-house for certain functions. It should also support the outsourcing of discrete R&D tasks to smaller businesses.
11. Research and Development Tax Credit – Base Year
It is intended ultimately that the base year will be phased out entirely over time and as resources allow. In the interim, the amount of expenditure eligible for the R&D Tax Credit on a full volume basis (without reference to the 2003 base year) is being increased from €200,000 to €300,000.
Target: This measure will reduce the impact of the base year on companies who had significant R&D expenditure in 2003 and it will assist smaller companies to access the credit without reference to the base year. The phasing out of the base year, when complete, should improve the overall international competitiveness of the regime.
12. Research and Development Tax Credit – Key Employee
The key employee provision is in place in order to assist companies to attract key talent, by allowing the company to transfer the tax-free benefit of the R&D tax credit to employees who meet certain conditions. Some minor changes will be made to this element of the tax credit to remove some barriers to take-up that were identified in the review of the R&D Tax Credit which took place this year.
Target: This measure is to help R&D performing companies to attract key talent.
Cash Flow
13. VAT – Increase cash basis to €2m
The annual VAT cash receipts basis threshold for small to medium businesses is being increased from €1.25m to €2m with effect from 1 May 2014
Target: To assist small to medium businesses in the critical area of cash-flow and to reduce administration.
Protecting Compliant Business by Tackling the Shadow Economy
14. VAT Anti-Fraud Measures
(i) Disallowance of input VAT – Business which have not paid for supplies (in full or part) within a six month period will be required to repay the VAT claimed on those supplies. (ii) Quick reaction mechanism – Allows Revenue to apply an emergency and temporary reverse-charge measure to certain goods or services to address sudden and massive VAT fraud. (iii) Requirement to keep specific records – Provision is being made to allow Revenue issue a notice requiring businesses to procure specific information in circumstances where Revenue has reasonable grounds for believing that the records specified might assist in identifying VAT fraud.
Target: To protect compliant business from unfair competition by tackling the shadow economy. To assist small business in the area of cash flow by encouraging prompt payments.
15. Excise and Energy Tax Anti-Fraud Measures
Tobacco
This gives Revenue the power to search baggage and other receptacles for illicit tobacco products. Revenue can require a person suspected of illegal selling of tobacco products to stop, and to permit and facilitate a search of any baggage or other thing the person has with them, and which is reasonably believed to contain tobacco products concerned in the offence.
Alcohol
Alcohol products that are held on unlicensed premises may be made liable to forfeiture under excise law and to seizure by Revenue.
Mineral Oil Tax Law
(i) Supplier liability to mineral oil tax in the case of a supplier who knowingly supplies Marked Gas Oil to persons who have no legitimate use for it. (ii) Revocation and renewal of mineral oil traders’ licences in the case of suppliers who knowingly supply Marked Gas Oil to persons who have no legitimate use for it.
Target: To protect compliant business from unfair competition by tackling the shadow economy.
16. The Appeal System for Tax Matters
Reform the role, functions and structure of the Office of the Appeal Commissioners, who hear appeals against assessments, decisions and determinations of the Revenue Commissioners on a variety of taxes, and of the tax appeals system.
Target: To ensure an enhanced and cost effective appeal mechanism for tax cases, providing transparency and increased certainty for the taxpayers.
Tourism and Hospitality Sector
17. VAT – Retention of 9% VAT rate
The reduced rate of 9% VAT for tourism related services and goods has been a boost to the tourism sector but is due to expire at the end of this year. The 9% VAT rate is being retained.
Target: To support and encourage growth in small businesses in the tourism sector.
18. Reduction of Air Travel Tax to 0%
The rate of the Air Travel Tax will be reduced to 0% from 1 April 2014. The Air Travel Tax was introduced in March 2011 and since then a general rate of €3 has applied.
Target: To encourage the development of new routes leading to increased capacity and traffic flows. This increase in routes and therefore in passengers should lead to the creation of additional jobs.
Construction and Building Sector
19. Extension of the Living City Initiative
The Initiative is being extended to include residential properties constructed up to and including 1914 and certain areas of the cities of Cork, Galway, Kilkenny and Dublin.
Target: To have a beneficial effect on the construction sector by stimulating the regeneration of retail and commercial districts and encouraging families to move back into the centre of Irish cities to live in historic buildings.
20. Home Renovation Incentive
Tax relief of 13.5% will be available for qualifying expenditure on home renovation and improvement work. The relief will be granted by way of a tax credit split over two years following the year in which the works are carried out. The minimum expenditure must be €5,000 and relief will be provided up to a maximum of €30,000. The relief will be linked to the Principal Private Residence of an individual and the contractor must be tax compliant.
Target: To give a boost to tax compliant businesses in the construction sector.
21. Extension of CGT Relief for Property
Budget and Finance Act 2012 introduced a CGT incentive for property purchased in the period up to 7 December 2013. This purchase period is now being extended to 31 December 2014. Properties purchased in this extended period and which are held for a minimum of 7 years will not attract CGT on any gains if disposed of at that point. Proportionate relief will apply where disposals are made after 7 years.
Target: To encourage activity in the property sector.
Farming/Agriculture and Food Sector
22. VAT – Increase in Farmers flat rate addition from 4.8% to 5%
The farmers flat-rate addition is being increased from 4.8% to 5% with effect from 1 January 2014. The flat-rate scheme compensates unregistered farmers for VAT incurred on their farming inputs and is reviewed annually in accordance with the EU VAT Directive.
Target: To assist the farming sector. The increase to 5% in 2014 continues to achieve full compensation for farmers.
23. Capital Gains Tax Retirement Relief
CGT retirement relief is being further extended to disposals of leased farmland in circumstances where, among other conditions, the land is leased over the long-term (a minimum lease of 5 years) and the subsequent disposal of the farmland is to a person other than a child of the individual disposing of the land.
Target: The purpose of the measure is to encourage older farmers who have no children to transfer their farm to, lease out their farmland over the long term to younger farmers.
24. Review of Farmers Taxation
The Departments of Finance and the Department of Agriculture, Forestry and the Marine will conduct an independent review of farmer taxation in 2014 to ensure that tax reliefs are focused on those areas where they are needed most and also to ensure tax payer value for money
Target: To target farming tax reliefs at the areas where they will have the most benefit.
Film Industry
25. Improve the new Film Relief to include non-EU talent
The definition of ‘eligible individual’ is being extended to include non-EU talent, in conjunction with the introduction of a withholding tax.
Target: To attract major film productions and high-end television shows to these shores by improving Ireland’s attractiveness to international movie stars. These types of productions are job rich and can often give a knock-on boost to the tourism sector.
58. Deputy Olivia Mitchell asked the Minister for Finance if it is possible to allocate additional resources to deal with the growing problem of the importation and sale of illegal cigarettes here; and if he will make a statement on the matter. [47914/13]
View answerI am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax and for tacking the illicit trade in tobacco products, that they attach a high priority to dealing with this criminal activity. Their “Strategy on Combating the Illicit Tobacco Trade (2011-2013), which is published on the Revenue website (www.revenue.ie), includes a range of measures designed to complement each other in targeting the supply and demand sides of the market for illicit tobacco products. 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, development of analytics and detection technologies, and optimum deployment of resources at points of importation and inland to intercept and seize contraband products and to prosecute those involved.
Interception of illicit tobacco products at importation is achieved through a combination of risk analysis, profiling, intelligence and the screening of cargo, vehicles, baggage and postal packages. Revenue officers also target the illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
In carrying out this important work Revenue works in close cooperation with other relevant agencies, both nationally and internationally. There is extensive cooperation in this jurisdiction between Revenue and An Garda Síochána, and the agencies in the State and in Northern Ireland work closely together, through a cross-border group on tobacco enforcement, to combat the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, cooperation takes place with other Revenue administrations and with the European Anti-Fraud Office, OLAF, in the ongoing efforts to tackle the illicit trade in tobacco products at international level.
Considerable success is being achieved in combating the illegal tobacco trade. In 2012, a total of 95.6 million cigarettes and over 5 tonnes of tobacco were seized and there were 132 convictions for smuggling or sale of illicit tobacco product.
Research, undertaken by IPSOS MRBI for the Revenue Commissioners and the National Tobacco Control Office of the Health Services Executive, indicates that the incidence of illicit packs of cigarettes in the State in 2011 represented 15%. A similar survey for 2012 indicated an incidence of 13%. While these data would suggest that the problem is being contained, the Revenue Commissioners recognise the ongoing need for vigorous action against the importation and sale of illicit tobacco products, and are committed to ensuring that the work continues to receive the high priority that has been accorded to it to date.
Revenue is conscious that those involved in the illegal trade in tobacco are constantly striving to avoid detection by seeking out new ways of smuggling the illicit product and putting it on the market, and that its own response needs to be agile and adaptive in combating this criminal activity to take account of this.
With regard to staff numbers I am informed by the Revenue Commissioners that they are a fully integrated tax and customs administration. Revenue currently has approximately 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance, returns compliance and debt collection. Enforcement strength at particular locations is regularly augmented with additional personnel on a risk-assessment basis, or when particular operations are taking place.
The Revenue Commissioners are subject to the Employment Control Framework staffing reductions imposed since 2009. Revenue’s overall staffing levels have reduced from a total of 6,581(FTE) at the end of 2008 to its current level of 5,740 (FTE). Notwithstanding this reduction, Revenue staff resources assigned to compliance activities have been maintained at around 2,000. The Revenue Commissioners are committed to ensuring that, despite the staff reductions, enforcement work against the illicit tobacco trade will continue to be resourced to the maximum extent possible taking account of emerging business priorities.
59. Deputy James Bannon asked the Minister for Finance if he would consider a 0.25% levy on supermarkets and other retailers on the outskirts of cities and towns turning over €8 million to reinvigorate struggling town centres that have suffered the worst effects of the recession; and if he will make a statement on the matter. [48172/13]
View answerI assume that the Deputy is referring to a levy on supermarket profits. In terms of tax policy generally, Ireland’s corporate tax rate of 12.5% on trading income is akin to a brand and is an important part of the Government’s strategy of creating an enterprise friendly environment to attract jobs and investment to Ireland. One of the main features of the rate is its simplicity and the fact that it applies to a broad base.
The Deputy’s suggested approach would involve significant complexity and could undermine the attractiveness of Ireland’s corporate tax offering.
Further, there could also potentially be State Aid issues if we were to target tax payers in the manner suggested.
60. Deputy Seán Kyne asked the Minister for Finance the assistance available to small-to-medium sized companies in preparing for the single European payments area which will impact greatly on a company's ability to compete successfully in the European marketplace; and if he will make a statement on the matter. [48310/13]
View answerThe aim of the Single Euro Payments Area (SEPA) project is to create a single market for euro-denominated retail payments. SEPA is an EU initiative that will change the way that these payments are processed across Europe. SEPA will allow payment systems users to make euro-denominated retail electronic payments to payees located in any of the participating countries, using a single payment account and a single set of payment instruments SEPA comes into full effect on 1 February 2014 and businesses will need to ensure that payroll, direct debit and accounting systems are SEPA-ready.
The implementation of SEPA within Ireland is overseen by the National Payments Plan (NPP) Steering Committee, which was established in 2012 to modernise the way payments are made in Ireland. In this regard, an NPP-SEPA sub-group has been formed, consisting of representatives of consumers, businesses, Government and banks. This sub group provides an avenue for the discussion of any issues that arise in the process of migrating to SEPA.
I understand from the Central Bank that there is considerable assistance available to the SME sector in the context of migrating their payment business to SEPA.
A national information campaign using radio, internet and national newspapers has been run in the current year, in parallel with similar campaigns run by some of the banks providing retail payment services in Ireland.
The ‘www.readyforsepa.ie’ website has also been set up to provide SEPA-related information to corporates of all sizes as well as to individual consumers. All of the banks providing retail payment services in Ireland have comprehensive SEPA information on their websites, as does the Irish Payment Services Organisation, the representative body for the payments industry in Ireland.
A series of presentations on SEPA has also been made over the course of this year to the SME sector, in conjunction with representative bodies such as ISME, Chambers Ireland, IBEC, etc.
All SMEs have at this stage been contacted by their banks about SEPA migration, and the banks all have dedicated SEPA migration teams in place to help their customers move to the new payment standards introduced by SEPA. Providers of payments software packages to the SME sector are also available to assist in the SEPA migration process.
It is also noteworthy that not all SMEs will be affected by SEPA - only those who submit bulk payment files to their banks for processing, of which there are about 30,000.
