Written Answers Nos. 175-195
175. Deputy Michael McGrath asked the Minister for Finance if he has given consideration to the State acquiring the banking operations of ACC as a means of giving effect to the programme for Government commitment to establish a strategic investment bank; and if he will make a statement on the matter. [50445/13]
View answerACC’s situation must be considered against a backdrop of a comprehensive programme of bank recapitalisation and restructuring that has been underway to change the future banking landscape in Ireland. It is hard to see in any context how the purchase of a bank which has been focused on downsizing over the past number of years would match the goals and ambition of strategic investment. As the Deputy will be aware, the Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the National Pensions Reserve Fund (NPRF).
Using the Ireland Strategic Investment Fund, we will maximise our resources to enhance growth in the Irish economy and improve key infrastructure to maintain Ireland's attractiveness as a place to do business and to create employment. Officials of my Department are currently preparing the necessary legislation which I anticipate will be enacted early next year.
Already, in the lifetime of this Government, the NPRF has established funds that support both strategic projects and a number that support SME financing. Further assessment of the need to create a Strategic Investment Bank over and above the contribution expected from the ISIF will be informed by the requirements of the economy once the Government’s key immediate objectives for the repair of the banking system have been completed.
176. Deputy Patrick O'Donovan asked the Minister for Finance the outstanding issues that still have to be sorted between persons (details supplied) in County Wexford; and if he will make a statement on the matter. [50451/13]
View answerGiven that there are two parties to the transaction in question and tax matters potentially relevant to both, I am advised by the Revenue Commissioners they are concerned that taxpayer confidentiality may preclude them from responding to the Deputy’s question. Section 851A of the Taxes Consolidation Act 1997 (inserted by Finance Act 2011) placed on a formal statutory basis the long-standing and accepted obligation on the Revenue Commissioners to treat all taxpayer information confidentially. In the circumstances, it is suggested that the person concerned may contact Mr Mick O’ Flaherty, National Stamp District Office, Dublin Castle, Dublin 2, telephone (01) 8589394, who will be in a position to provide him with any information that may legally be provided by Revenue on the transaction in question and the tax consequences, if any, of that transaction for him.
177. Deputy Heather Humphreys asked the Minister for Finance the position regarding the second phase of the carbon tax which is due for implementation in May 2014; if he will consider deferring the further increase in view of the difficulties many coal and fuel merchants in the Border counties are experiencing due to the fact that only a 5% VAT rate is applied to coal in Northern Ireland in comparison with 13.5% in the Republic of Ireland; if there have been any discussions regarding the implementation of the carbon tax on an all-island basis; and if he will make a statement on the matter. [50464/13]
View answerSolid fuel carbon tax will be charged on all solid fuels supplied in the State, regardless of whether the fuel products are Irish made or imported. Solid fuel is defined under section 77 of the Finance Act 2010, as amended and means coal or peat. Coal is further defined to include coal and lignite, solid fuel manufactured from coal and lignite, and any other energy product within the meaning of Article 2.1 of Council Directive 2003/96/EC of 27 October 2003 in solid form. Peat means peat falling within CN Code 2703 of the Combined Nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987, as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 and includes any solid fuel manufactured from peat.
I am advised by the Revenue Commissioners that the Air Pollution Act, 1987 (Marketing, Sale and Distribution of Fuels)(Amendment) Regulations 2011 (S.I. No. 270 of 2011), made by the Minister for the Environment, Heritage and Local Government, specifies the standards for coal placed on the market and extends the regulatory framework in relation to the distribution and sale of coal in the State. Under the Regulations, all coal suppliers are obliged to register with the Environmental Protection Agency and comply with sulphur content and packaging standards. In particular, the sulphur content of coal that may be sold in the State, which is not more than 0.7% sulphur by weight, is lower than that in Northern Ireland and therefore coal supplied to Northern Ireland standards for sale on that market may not be sold in the State. Compliance with the Regulations will be enforced by the Local Authorities.
The Revenue Commissioners, who are responsible for the collection of carbon tax on solid fuels, also advise me that on commencement of the carbon tax provisions under the Finance Act 2010, any Northern Ireland-based wholesaler of solid fuels selling into the market in Ireland will be obliged to register as a supplier and comply with the same regulatory requirements as wholesalers based in the State. Such suppliers will be obliged to make returns on solid fuels supplied in the State in the accounting period concerned and pay the amount of carbon tax due in respect of that supply. Therefore it is not my intention to defer the second phase of the carbon tax which is due for implementation in May 2014.
178. Deputy Martin Heydon asked the Minister for Finance if the pension income of a person now deceased (details supplied) in County Meath was correctly treated from a tax point of view; the reason they incurred a tax liability in view of the fact that the level of their private pension was below the €18,500 limit; and if he will make a statement on the matter. [50531/13]
View answerI am advised by the Revenue Commissioners that this taxpayer’s total income exceeded the income tax exemption limit of €18,000 for 2012. The same income tax exemption limit of €18,000 applies for 2013 and there was no reason to anticipate that the total income of the taxpayer would change in 2013. However, with the death of the taxpayer in July 2013, the taxpayer’s total income for 2013 may come in under the limit of €18,000, which may result in a tax refund being due. The Revenue District of the deceased taxpayer will be in contact with the personal representatives of the taxpayer to determine this.
179. Deputy Olivia Mitchell asked the Minister for Finance if he will confirm that the levy on defined contribution pensions, originally introduced to fund job creation measures, will not become a funding stream to subsidise defined benefit pensions in deficit in view of the fact that defined contribution schemes are in many cases comprised entirely of the savers' personal savings; and if he will make a statement on the matter. [50555/13]
View answerI announced in my recent Budget speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I am, however, introducing an additional levy on pension funds at 0.15%. This additional levy within the existing legal framework will apply to pension fund assets in 2014 and 2015. I am doing this to continue to help fund the Jobs Initiative, including the continuation of the reduced 9% VAT rate detailed below and to make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties. The revenues arising to the Exchequer from the levy are, in common with Exchequer revenues generally, not hypothecated or set aside to meet any particular item of expenditure or liability but have been used to help fund the various measures introduced by the Jobs Initiative. One of the very significant and successful measures introduced by the Jobs Initiative – the reduced VAT rate of 9% on tourism and certain other services – was due to end this year. In my Budget speech, I announced the continuation of the reduced 9% VAT rate. I also announced that the Air Travel Tax is being reduced to zero with effect from 1 April 2014. The combined cost of these initiatives is estimated at close to €400 million in a full year.
The extent of the potential State liabilities from the pre-existing or future pension fund difficulties is a matter primarily for my colleague the Minister for Social Protection. However, I can say that agreement has been secured for these liabilities to be met by the Exchequer, where they arise. As I have already indicated, however, the proceeds from the levy that accrue to the Exchequer are not set aside in the manner suggested in the question and expenditure decisions on the use of those and other funds will be made as they arise in the normal way.
180. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding alleged text messages from the Revenue Commissioners; and if he will make a statement on the matter. [50557/13]
View answerI am advised by the Revenue Commissioners that on 6 November 2013 it came to their attention that fraudulent text messages purporting to be from Revenue were in circulation. This particular scam took the form of a message referring to an Irish tax refund. Recipients were invited to visit a website and to enter the 4 digit number contained in the message. Recipients who followed the instructions were then asked to provide certain information including their bank account and credit card details.
Immediately on becoming aware on this matter, Revenue placed a warning notification on the home page of their website (www.revenue.ie) - this warning is still on the website. The notification confirms that the text message in question is not from Revenue and reminds customers that Revenue never sends unsolicited text messages. It further instructs recipients to ignore such messages and advises those who might have provided personal information to contact their bank or credit card company immediately. Revenue used social media to draw attention to this matter and there was coverage of the matter in national and local media. Revenue also contacted the Internet Service Provider hosting the website referred to in the text message and requested that it be closed down. It should be noted that this particular scam has already crossed six different websites in three different countries.
I am advised by Revenue that there is no connection between the receipt of this fraudulent text message and contact of any manner a person may have made with Revenue in the past. The perpetrators of the text message scam sourced mobile telephone numbers from a source or sources unknown and issued texts in the hope that a percentage of recipients would reply and provide personal information of the type outlined. In that context also the Deputy should be aware that the ‘Security’ section of Revenue’s website carries warnings about fraudulent emails and text messages.
Finally, the security of their systems and customer information is a priority for Revenue. Their systems are accredited to ISO27001 standard for information security and are regularly audited and tested.
181. Deputy Pearse Doherty asked the Minister for Finance the date on which he will produce the medium-term economic plan; the length of time the plan will span; and the person he is consulting in the drawing up of the plan. [50573/13]
View answerThe Government approved the drafting of a Medium Term Economic Strategy (MTES) on 11th June 2013 and consultation on this Strategy has been ongoing with Departments, Agencies, and Representative Bodies. The MTES is a whole-of-Government endeavour and the Department of Finance and the Department of Public Expenditure and Reform were given joint responsibility to prepare the strategy in close consultation with the Department of the Taoiseach and the Office of the Tánaiste, and working with all Departments. The strategy will set out the macroeconomic strategy and policy actions for achieving sustainable economic and employment growth for the period 2014-2020. Extensive consultation with a range of key stakeholders has already taken place. Two consultation exercises in relation to the MTES were undertaken by the two Departments in September 2013 which focused on the challenges to be addressed to achieve economic growth and job creation. The first of these was a conference in Dublin Castle on 3rd September under the auspices of the Irish Government Economic Evaluation Service (IGEES) which, inter alia, supports Departments in evaluating policy and providing economic analysis. The IGEES event was attended by representatives of government Departments and agencies, regulators, the Central Bank of Ireland, the Economic Social Research Institute (ESRI), the Irish Fiscal Advisory Council and academia.
In addition, a major consultative forum took place on Tuesday 24th September 2013, again in Dublin Castle, at which around 160 representatives of businesses and enterprises, relevant Government Departments and agencies and bodies representative of business and industry participated. This forum facilitated the exchange of ideas between Government and business with a view to Ireland maximising economic growth and meeting its fiscal commitments to the year 2020 and is helping to inform the preparation of the MTES. On 18th October Officials from my Department also briefed members of the National Economic and Social Council (NESC) on the MTES preparations. In a document titled, Ireland’s Five-Part Crisis, Five Years On: Driving Reform and Institutional Innovation, NESC raised a number of issues in respect of the MTES regarding the policy-making framework, including how policy is developed, implemented and reviewed for effectiveness.
A further MTES consultative event was held on 25th November to capture the input of a more diverse group of entrepreneurs, specifically: female entrepreneurs, young entrepreneurs (mainly under 35 years of age) and ‘new Irish’ entrepreneurs. The views and ideas expressed at this event will also be taken into consideration in drafting the MTES.
In addition, following competitive tendering processes, we engaged the services of two consultancy firms.
1. The ESRI was engaged to advise and assist in the economic modelling of various policy scenarios;
2. PMCA Economic Consultants were engaged to provide assistance and analysis in the preparation of the Medium-Term Economic Strategy, including an analysis of recent medium-term economic strategies in countries comparable to Ireland, and to provide related advice on the effective development and implementation of the Strategy.
We are also receiving advice and assistance from PIVOT Dublin in the design of the final document. A publication date for the Strategy has not been decided by Government as yet, but it is intended to produce at least a clear outline of the strategy by mid-December.
183. Deputy Terence Flanagan asked the Minister for Finance if he is satisfied that the Garda credit union is fully capitalised. [50604/13]
View answerI have been informed by the Central Bank that under section 33AK of the Central Bank Act 1942, they cannot comment on matters in relation to an individual credit union. I note from the website of St. Raphael’s Garda Credit Union that its Annual General Meeting is scheduled for 17 December at which the financial position of the credit union would be expected to be presented to members.
184. Deputy Michael Creed asked the Minister for Finance futher to Parliamentary Question No. 79 of 23 October 2013, if he will clarify of the 76,800 persons who are in receipt of one-parent family tax credit, the numbers of these claimants who were parents of the children involved and grandparents or other relatives; if he will indicate the maximum number of persons entitled to the allowance in respect of any one child; and if he will make a statement on the matter. [50648/13]
View answerI am informed by the Revenue Commissioners that information on the relationship between carers and the children in their care is not generally required in claims made for the one parent family tax credit. Accordingly, there is no basis on which a breakdown of the numbers of carers by reference to their relationship with children in their care could be compiled. The position is that section 462 of the Taxes Consolidation Act 1997 provides that a claimant must prove for a year of assessment that a qualifying child was resident with the claimant for the whole or part of the year. That qualifying child must be either a child of the claimant or, if this is not the case, the claimant must have custody of the child and maintain that child at his or her own expense. Therefore, depending on the particular domestic circumstances pertaining to a child, more than one claimant may claim a credit in respect of the same child. The section does not provide for a maximum number of claimants.
185. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013, or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50658/13]
View answer186. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50660/13]
View answer187. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50662/13]
View answer188. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50664/13]
View answer189. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50666/13]
View answer190. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50668/13]
View answer191. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts and their total financial cost awarded to a company (details supplied) by his Department in each of the years 2008 to 2012, inclusive, and to date in 2013 or whatever years practicable; if all the contracts were winning public tenders; if he will provide a breakdown of the contracts by date, purpose and individual value. [50670/13]
View answerI propose to take Questions Nos. 185 to 191, inclusive, together.
I propose to take all of the above parliamentary questions together since they all pose the same question but regarding seven different companies. The detail requested by the Deputy is set out in the table.
|
Company name |
Year |
Amount Paid |
Nature of work |
Was contract subject to tender? |
Number of contracts |
|
A Cox |
2008-2013 |
€17,744,140 |
Professional advice – banking sector stabilisation |
Novated from NTMA |
1 |
|
Deloitte & Touche |
2013 |
€4,305 |
Technical Assistance with audit. |
Once-off item of work, public tender not required for this value. |
N/a |
|
Deloitte & Touche |
2012 |
€61,553 |
External Review of GGD error |
Due to the urgency of the work, a direct invitation to tender was issued to a number of suppliers who were deemed to be suitably qualified to do the work. |
1 |
|
Grant Thornton |
2012 |
€31,808 |
Assessment of Credit Review Office |
Yes |
1 |
|
Price Waterhouse Coopers |
2010-2013 |
€412,715 |
Deirdre McGrath/John Kelly secondments |
Secondment - N/a |
1 |
|
Price Waterhouse Coopers |
2010 |
€118,580 |
Professional Fees in respect of accounting advice on promissory notes |
No |
1 |
|
Ernst & Young |
2008 |
€224,302 |
Study on the economic and budgetary implications of a CCCTB + expenses |
Yes |
1 |
|
Mc Cann Fitzgerald Solicitors |
2008 |
€63,024 |
To draft conditions of engagement for construction related services and a price variation clause for construction contracts based on a proven cost basis; draft legal changes resulting from consultation process and training; legal and procurement advice. |
Yes |
1 |
192. Deputy Finian McGrath asked the Minister for Finance if he will clarify if a person may transfer their house into another person's name in order that they may sell the house on their behalf; if he will also clarify the tax implications of such a transaction; and if he will make a statement on the matter. [50693/13]
View answerOrdinarily a transfer of a house from one person to another would be a disposal by the person making the transfer for capital gains tax purposes. Stamp duty would also ordinarily be payable by the person to whom the property is transferred. Depending on the circumstances, it could also be a gift subject to capital acquisitions tax to the person to whom the property is transferred. Again, depending on the circumstances, there may be reliefs available. However, before a meaningful reply could be given to any aspect of the question, it would be necessary to have full particulars of the circumstances in which it is envisaged that the transfer in question would take place and of the reason why it would be necessary that the house be transferred “into another person’s name in order that they may sell the house on their behalf”. In particular, it would be necessary to know the exact terms on which the property would be transferred and why the owner of the property does not/cannot personally sell the house. If the Deputy wishes to provide full particulars, I will make further enquiries on the matter.
193. Deputy Patrick O'Donovan asked the Minister for Finance if a person (details supplied) in County Wexford may avail of mortgage interest relief on part of their overall mortgage; and if he will make a statement on the matter. [50698/13]
View answerThe position is, as I stated on many occasions in this House, in order to qualify for tax relief in respect of mortgage interest, a loan must have been drawn down and used in the purchase, repair or development of a principal private residence on or before 31 December 2012. This decision was announced in Budget 2011 and introduced in Finance Act 2012. In regard to the specific case mentioned by the Deputy, Revenue has advised me that the representation does not provide sufficient detail to establish whether the person in question is entitled to mortgage interest relief. Therefore, in order to establish if entitlement exists, the person concerned should make direct contact with Revenue’s Tax Relief at Source (TRS) Unit at 1890 46 36 26 or email trsadmin@revenue.ie and provide details of his PPS number, the lending institution that issued the loan, the loan account number and whether the loan was taken out to purchase a site and build a house, or to purchase a house directly. Revenue has assured me, that once the required information is received it will immediately confirm to the person whether there is an entitlement to mortgage interest relief or not.
194. Deputy Pearse Doherty asked the Minister for Finance the total number of contracts by company, by number and by financial value, awarded in 2010, 2011 and 2012 by the National Asset Management Agency to companies (details supplied). [50706/13]
View answerSet out in tabular form, is a breakdown of professional fees paid to the identified firms for each of the years, 2010, 2011 and 2012 for valuation, audit, legal and other services provided to NAMA in the context of its management of loans with an original par value of €74bn.
|
Supplier |
2010 |
2011 |
2012 |
|
Deloitte & Touche |
2,053,267 |
2,706,714 |
1,630,170 |
|
Ernst & Young |
1,576,872 |
6,907,285 |
195,478 |
|
KPMG |
7,498,878 |
10,089,040 |
4,706,924 |
|
Grant Thornton |
122,508 |
1,028,628 |
1,371,593 |
|
PWC |
8,330,300 |
4,341,188 |
1,374,526 |
|
Arthur Cox |
2,068,574 |
1,380,381 |
1,600,559 |
|
McCann Fitzgerald |
53,249 |
1,791,265 |
2,008,045 |
195. Deputy Richard Boyd Barrett asked the Minister for Finance further to Parliamentary Question No. 90 of 12 November 2013, the steps that the Revenue Commissioners took to confirm that the person in question was residing with their partner for the years concerned; and if it is the practice of the Revenue Commissioners to withdraw tax credits without looking for confirmation of the reasons for adjusting tax credits. [50708/13]
View answerI am informed by the Revenue Commissioners that the one parent family tax credit was withdrawn from the person in question on receipt of specific information provided to the Revenue District by the taxpayer and his partner. The entitlement of individuals to the range of tax credits are set out on www.revenue.ie. The Revenue Commissioners have in place a range of measures to ensure that taxpayers can easily claim their tax entitlements and credits. This is balanced by a programme of compliance checks to ensure that everyone's tax affairs are in order.
It is not the practice of the Revenue Commissioners to withdraw credits without supporting evidence. However, in the event that the person concerned is dissatisfied with the decision to withdraw the credit, he should contact the South City/Dun Laoghaire Rathdown Customer Service District, Lower Mount St Dublin 2. There is also a right of appeal to the Appeal Commissioners against the withdrawal of the relevant tax credit. If the taxpayer wishes to pursue and appeal, he should give notice in writing to this effect to the Revenue District, and the matter will be heard and determined by the Appeal Commissioners.
