Written Answers Nos. 113-128
113. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade if he has expressed any concerns to the Northern Ireland authorities and British Government with regard to a person (details supplied) in County Donegal who has been on remand in Maghaberry Prison for four years, against all international best practice in relation to justice and human rights in terms of the right to a speedy trial. [52688/13]
View answerI am aware of the case to which the Deputy refers and understand that the person has been charged with attempted murder of a student police officer; possession of a firearm and ammunition with intent to endanger life or cause serious damage; and making use of a firearm with intent to prevent lawful arrest. He was committed for trial on 23 August 2011. An application for Judicial Review of the decision to commit the defendant for trial was taken, and was dismissed by the High Court in Belfast in a written decision issued on 22 October 2013.
Since the 2010 agreement at Hillsborough the Department of Justice in Northern Ireland and the Minister for Justice for Northern Ireland, David Ford MLA, have responsibility for policing and criminal justice policy in Northern Ireland. In the post Hillsborough period, co-operation on Justice issues has gone from strength to strength and cooperation between the PSNI and an Garda Síochána is outstanding. The Government’s focus is to ensure that policing and justice systems which are in place in Northern Ireland are consistent with the principles and values of the Good Friday Agreement and the other agreements for which we are co-guarantors.
In this context, the detention of the person referred to does not arise by virtue of powers vested in the Secretary of State for Northern Ireland but under devolved powers vested in the Northern Ireland Courts which are independent in the exercise of their functions. This is in keeping with the devolved arrangements arising from the Good Friday Agreement and the Hillsborough Agreement. As the matter is still outstanding, it would not be appropriate for me to comment any further, or to seek to influence the matters to which the Deputy refers.
114. Deputy Seán Kenny asked the Tánaiste and Minister for Foreign Affairs and Trade if he has spoken to the Irish Honorary Consul in Kyiv recently regarding the ongoing violence there; and if he will make a statement on the matter. [52717/13]
View answerI have been following the situation in Ukraine very closely since protests began following the announcement on 21 November by Ukraine’s President, Viktor Yanukovych, of his decision to postpone preparations for the signature of the Association Agreement at last month’s Eastern Partnership Summit in Vilnius. An estimated 350,000 took part in an anti-government rally in Kyiv on 1 December to demonstrate their support for Ukraine’s political association and closer integration with the EU. The protests have focused on Independence Square and in the areas surrounding the Presidential Administration, the Prime Minister’s Office and Parliament. There are also protests on a smaller scale in other parts of the country.
The rights to freedom of expression and freedom of assembly are enshrined in the European Convention on Human Rights and are fundamental in any society. I strongly believe that these rights should be fully respected by the Ukrainian authorities and would expect nothing less from the current holder of the Chairmanship-in-Office of the OSCE. The demonstrations have been largely peaceful though there have been reports of provocateurs being active among the crowds. The excessive use of force by the police over the weekend of 30 November-1 December in an effort to disperse peaceful protestors was not justified and has been, rightly, widely condemned.
I fully support the call made in Kyiv on 4 December by the Secretary General of the Council of Europe, Thorbjorn Jagland, for an immediate and thorough investigation into the violence. In that context, I welcome Prime Minister Azarov’s apology to the people in Parliament on 3 December for the police actions and the announcement of measures to be taken against those who had used force. While I have not spoken to the Honorary Consul, I have been kept informed of developments by Ireland’s Prague-based Ambassador to Ukraine who was in Kyiv from 2-4 December. She has reported to me on meetings which she attended during her visit with the Ukrainian authorities, with other resident Ambassadors and with Ireland’s Honorary Consul.
As for the background to the demonstrations, I am on record as expressing our disappointment with Ukraine’s decision to postpone the Association Agreement process while reiterating that the European Union’s comprehensive and generous offer remains on the table. Together with the Deep and Comprehensive Free Trade Agreement this package was the most ambitious offer made to any partner by the EU. It was also one very much in the interests of Ukraine and its people in terms of the long term benefits it would bring.
I am encouraged that contacts are ongoing between the Ukrainian government and the EU and hope that the Association Agreement process can be resumed. This will require Ukraine to make further tangible progress on the conditions set out by the Foreign Affairs Council last December, including in the area of selective justice. Important progress by Ukraine had been achieved. I commend the European Parliament’s monitoring mission, led by former President of Poland, Aleksander Kwaœnievski, and former President of the European Parliament, Pat Cox, for their intensive engagement with the Ukrainian authorities over many months on all areas of concern.
Of course, ultimately it is a matter for Ukraine to decide freely what kind of engagement it wishes to have with the EU. In the meantime, I urge the Ukrainian government to fully abide by its international commitments to respect the rights to freedom of expression and assembly. In this very tense and fluid situation, it is incumbent on all sides to show the utmost restraint and I would stress the importance of dialogue to help reduce the tension and to try to find an agreed way forward.
115. Deputy Seán Kenny asked the Tánaiste and Minister for Foreign Affairs and Trade if he has spoken to the Irish Honorary Consul in Bangkok recently regarding the ongoing violence there; and if he will make a statement on the matter. [52718/13]
View answerI have been concerned by the reports of violence in Bangkok following recent protests there, and I note that all sides now appear to be exercising restraint. I also note that Prime Minister Yingluck Shinawatra has called elections for next February.
Ireland’s Ambassador to Thailand, who is accredited from Kuala Lumpur, has been reporting to the Department of Foreign Affairs and Trade since the protests began. The Honorary Consul in Bangkok, who is primarily responsible for consular matters under the guidance of the Embassy in Kuala Lumpur, has advised that no Irish citizens to date have been affected by the protests. The Embassy has been in regular contact with a range of sources in Bangkok including the Thai Foreign Ministry, the Head of the Delegation of the European Union, local Irish sources and various Non-Governmental Organisations. My Department’s website is regularly updated to give Irish citizens the latest information on the situation in Thailand.
The Irish Government strongly supports the statement issued by the spokesperson of the EU High Representative Catherine Ashton, which called on all parties to respect the rule of law, avoid escalation and resolve differences through peaceful means. We will continue to use our sources to monitor the situation closely.
116. Deputy Peadar Tóibín asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide a breakdown of the annual infrastructure and capital expenditure by his Department on a regional basis and a county basis over the past five years. [52800/13]
View answerMy Department does not operate a public capital programme. The Department’s administrative capital budget is mainly in respect of ICT, passport production and accommodation, both in Ireland and at the Department’s missions overseas.
The following table presents the capital expenditure for the two Votes for which my Department is responsible: Vote 28 (Foreign Affairs and Trade) and Vote 27 (International Co-operation) over the course of the past five years.
|
VOTE |
2013 (year to date) €000 |
2012 €000 |
2011 €000 |
2010 €000 |
2009 €000 |
2008 €000 |
Total €000 |
|
Vote 28 - FOREIGN AFFAIRS AND TRADE |
1,130 |
2,288 |
1,985 |
6,745 |
11,331 |
14,730 |
38,209 |
|
Vote 27 - INTERNATIONAL CO-OPERATION |
117 |
27 |
215 |
1,275 |
1,317 |
1,337 |
4,288 |
|
Total |
1,247 |
2,315 |
2,200 |
8,020 |
12,648 |
16,067 |
42,497 |
117. Deputy Kevin Humphreys asked the Tánaiste and Minister for Foreign Affairs and Trade the reason for the underspend of €4 million in capital funding in the expenditure profile at end November as part of the most recent analysis of gross Voted expenditure Exchequer figures; if he will provide a breakdown of the capital projects or outlays that have not commenced as yet, as per the profile; if any of the €107.2 million in total capital carryover in Government moneys for 2012 relates to his Department; the amount of same; if it has been spent; on what it has been spent; and if he will make a statement on the matter. [52951/13]
View answerMy Department’s combined capital budget for 2013 is €6.350 m (including carryover). This is expended mainly to support the Department’s ongoing investment in passport and ICT equipment and technology, as well as the maintenance of official premises at home and abroad. The Passport Service is in the process of upgrading its infrastructure as part of an ongoing multi-annual investment programme. Variance from profile is largely due to unavoidable delays in finalising the purchase of passport production equipment. However, it is anticipated that payments of the order of €1.6 million for new passport production machinery will be made shortly, with a further payment of a similar amount early in 2014. There will also be payments in relation to certain other ICT infrastructure and works on premises abroad. Accordingly, it is anticipated that capital expenditure will move substantially closer to profile by year end.
I can confirm that the sum of €400,000 was allocated to the Department in respect of capital carry-over for 2013. This sum will be spent fully on ICT and office accommodation requirements.
118. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade further to Parliamentary Question No. 41 of 3 December 2013, if he will correct his response where he says that the siege of Gaza has eased, given that the recent Amnesty report on Gaza from November clearly demonstrates that the siege has intensified to the point of utter catastrophe; and if he will support Amnesty's call for a lifting of the blockade, including by allowing the delivery of fuel and other essential supplies into the territory without restriction. [53122/13]
View answerMy reply to the Deputy’s Question on 3 December included the phrase: "There has been some easing of the blockade in recent years". This is simply a matter of fact. The terms of the ongoing Israeli blockade of Gaza have been eased in a number of respects in recent years, including the removal of most items from the forbidden list, some degree of movement of building materials, a very limited opening to certain exports, and some easing of the constraints on farmers entering land near the border fence and on fishermen at sea. The Deputy will also recall that my reply went on to state, as an important qualification of the preceding words: "...but far too little to allow the Gaza Strip to resume normal life". This is a point I have consistently stressed at all times, but it will not help our case to refuse to acknowledge such small improvements as there have been, which are well known to all. I am of course glad to see that Amnesty International support my consistent call for a lifting of the blockade.
The current worsening of actual conditions in Gaza relates in large measure to factors additional to the ongoing Israeli blockade. These are the loss of the additional supplies formerly obtained through the smuggling tunnels from Egypt, as a consequence of developments in that country, and an ongoing dispute between the Palestinian Authority and the Hamas authorities in Gaza, who have refused to pay for the fuel supplies which the PA formerly sent to them, and which were allowed through by Israel.
I repeat my call in reply to a recent Question on this topic for all relevant authorities in the area to consider the effects of their actions on the ordinary people of Gaza, who are helpless among these conflicting forces.
119. Deputy Billy Timmins asked the Tánaiste and Minister for Foreign Affairs and Trade the amount of funding his Department gives to Irish charities; the name of each organisation that receives funding; the amount of funding each organisation receives; the number that are open and transparent regarding salaries; and the steps he is taking to deal with non-disclosures. [53551/13]
View answerThe Government’s international aid programme, Irish Aid, which is managed by my Department, is recognised internationally for its effectiveness in producing results for the poorest and most vulnerable communities. About a quarter of Ireland’s overseas development assistance is channelled through Non-Governmental Organisations (NGOs). This reflects the strong contribution which Irish NGOs are making to the fight against world poverty and hunger, and the broad support which they continue to receive from the Irish public. Funding is provided to support the long-term development work carried out by NGOs in developing countries, as well as emergency humanitarian assistance and development education programmes.
Given the level of Government funding for the NGO sector, the issue of their internal governance arrangements is a matter of legitimate public interest. It is important to note, however, that NGOs are independent organisations. The salary levels of their employees are determined by the Board of the NGO and are typically funded from a variety of income sources, including general donations from the public, bequests and official funding. In relation to the funding provided through the Irish Aid programme, my Department appraises funding applications from the NGOs and assesses the cost efficiency and effectiveness of their projects and programmes and the basis of their expenditure decisions. Financing agreements between Irish Aid and NGO partners include clear parameters on certain cost categories, including administration costs. A limit of 6% of funding provided can be allocated to administration costs, with remuneration levels for senior executives being reviewed in the context of overall administration costs.
In 2012, Irish Aid entered into agreements for a new series of programme grants with the larger Irish development NGOs for their long term development work over a four year period. These agreements require these NGOs to follow best practice financial reporting standards for staff salaries as set out in the Statement of Recommended Practice in place in the UK. This British standard is currently used by Irish Aid, pending the establishment of the Charity Regulatory Authority. In line with the standard, these NGOs are required to set out in their published audited financial statements the number of staff receiving salaries above €70,000.
The statistical annexes to the Irish Aid Annual Report provide a detailed analysis of Ireland’s ODA, across a range of metrics including details of funding to non-governmental and civil society organisations. The most recent data published relates to ODA for 2012 and is available on the Irish Aid website at www.irishaid.ie. Detailed statistical analysis of Ireland’s ODA for 2013 will be compiled early in the New Year and will subsequently be published on the Irish Aid website.
My Department provides funding for the Ireland-United States Commission for Educational Exchange (the Fulbright Commission), which is a registered charity, on an annual basis. A grant of €254,000 was provided to the Commission in 2013. The Commission was established by the Educational Exchange (Ireland and the United States of America) Act, 1991 to facilitate the administration of educational and cultural exchanges between Ireland and the United States of America. Under the Act, the approval of the Minister for Foreign Affairs and Trade and the Ambassador of the United States is required for the engagement of an Executive Director and other administrative and clerical staff. Terms and conditions (including salary levels) for the staff are set by the Commission itself. Details of the staff salary levels are made available to my Department. Members of the Commission do not receive remuneration. My Department is provided with annual financial statements of the Commission, as audited by the Comptroller and Auditor General. These financial statements are also laid before the Houses of the Oireachtas.
My Department’s Emigrant Support Programme (ESP), provides funding to non-profit organisations and projects to support Irish communities overseas and to facilitate the development of more strategic links between Ireland and the global Irish. Applicant organizations to the ESP should be established as registered charities, charitable bodies or voluntary/not for profit organizations. While the vast majority of funding under the Emigrant Support Programme (ESP) is provided to organisations overseas, almost 12% of the budget is allocated to Irish based organisations. Recipient organisations here are typically active in providing services to returning or departing Irish emigrants or in promoting Irish heritage and sport abroad. Organisations receiving grants under the Emigrants Support Programme (ESP) are required to submit a financial report for each programme funded and financial accounts or audited financial statement. Full details of all funding provided by the Emigrant Support Programme can be found here: https://www.dfa.ie/our-role-policies/the-irish-abroad/emmigrant-support-programme/.
Through the Reconciliation and Anti-Sectarianism Funds, which support cross-community outreach in Northern Ireland and the border counties, cross-border co-operation and sensitive commemorative and cultural events, my Department has awarded a total of €1,751,183 so far in 2013. A table of all organisations awarded funding is set out below. Funding is awarded only for project costs. Salary costs are ineligible for support from the Funds. There are mechanisms for annual reporting and accounting by recipient organisations. Organisations in receipt of grants of €10,000 and above are required to submit a tax clearance certificate from the Revenue Commissioners and those in receipt of grants of €12,500 and above are required to submit independently audited accounts.
Departmental Funding
|
Organisation |
Amount |
|
15 Years On |
€1,500 |
|
1825 Project |
€17,000 |
|
36th (Ulster) Division Memorial Association |
€20,000 |
|
APAC Ireland |
€8,000 |
|
ARC Healthy Living Centre |
€10,000 |
|
Ard Eoin Fleadh Project |
€11,000 |
|
Ballymac Friendship Trust |
€8,000 |
|
Belfast City Council: Shared History, Different Allegiances |
€4,600 |
|
Belfast Interface Project |
€10,000 |
|
British Irish Association |
€20,000 |
|
British Irish Joint Study on Economic Relations |
€43,083 |
|
Carrick Hill Residents Association |
€10,000 |
|
Carrickfergus YMCA |
€7,000 |
|
Centre for the Study of Irish Protestantism, Maynooth |
€4,000 |
|
Charter NI |
€25,000 |
|
City of Londonderry Grand Orange Lodge |
€18,000 |
|
Clare Youth Service |
€4,000 |
|
Coalisland Residents & Community Forum |
€25,000 |
|
Community Foundation for Northern Ireland |
€30,000 |
|
Co-operation Ireland |
€380,000 |
|
Co-operation Ireland - All Island Schools Choir Competition |
€40,000 |
|
Corrymeela Community |
€50,000 |
|
County Fermanagh Grand Orange Lodge |
€9,000 |
|
Creggan Youth Drop-in |
€10,000 |
|
Cumann Culturtha Mhic Reachtain |
€5,000 |
|
Derry Theatre Trust |
€10,000 |
|
Donegal Youth Service |
€20,000 |
|
East Belfast Mission |
€40,000 |
|
ECF - Links |
€20,000 |
|
Epworth Methodist Church |
€3,000 |
|
Fit Kidz |
€11,000 |
|
Forge Family Resource Centre |
€20,000 |
|
Fortwilliam & Macrory Presbyterian Church |
€14,000 |
|
Friends of Aghadrumsee School |
€5,000 |
|
Gasyard Wall Féile |
€9,000 |
|
Gleann Amateur Boxing Club |
€6,000 |
|
Glencree Centre for Peace and Reconciliation |
€142,000 |
|
Greenore Greencastle Community Association |
€20,000 |
|
Groundwork NI |
€25,000 |
|
Harmony Community Trust |
€20,000 |
|
Healing through Remembering |
€24,000 |
|
Holy Cross Retreat, Ardoyne |
€40,000 |
|
Interaction Belfast |
€10,000 |
|
International Centre for Local & Regional Development |
€25,000 |
|
Irish Association for Cultural Economic & Social Relations |
€12,000 |
|
Kids in Control |
€15,000 |
|
Kids' Own Publishing Partnership |
€25,000 |
|
Kilcooley Women's Centre |
€22,000 |
|
Knockconan Border Summer Camp |
€5,000 |
|
Magherafelt Olympic Football Team |
€2,000 |
|
Maiden City Festival Committee |
€35,000 |
|
Mediation Northern Ireland |
€14,000 |
|
Mullacreevie Development Association |
€2,500 |
|
New Lodge Arts |
€10,000 |
|
Newhill Football Club |
€6,000 |
|
North Belfast Interface Network |
€8,000 |
|
North Down Community Assistance |
€10,000 |
|
Northern Ireland Mixed Marriage Association |
€12,500 |
|
Northern Ireland Trade Union Education & Social Centre |
€50,000 |
|
Partners in Catalyst |
€18,000 |
|
Partners, Training for Transformation |
€15,000 |
|
Playhouse Theatre |
€25,000 |
|
Quaker Service |
€2,500 |
|
Queen's Park Women's Group |
€8,000 |
|
Restorative Justice Forum c/o Quaker Service |
€8,000 |
|
Rights Watch UK |
€15,000 |
|
Rosario Youth Centre |
€6,500 |
|
Seaview Enterprises |
€8,000 |
|
Seven Towers Community & Cultural Education Association |
€5,000 |
|
Shimna Integrated College |
€25,000 |
|
Short Strand Women's Group |
€5,000 |
|
Spectrum Centre |
€15,000 |
|
St Columb’s Park House |
€2,000 |
|
St. John Vianney Youth Centre |
€8,000 |
|
St. Teresa's Youth Club |
€8,000 |
|
Stranorlar Meenglass & Kilteevogue Football Club |
€2,000 |
|
Tara Centre |
€45,000 |
|
Ulster Canada Initiative |
€4,000 |
|
Unionist Centenaries Committee |
€20,000 |
|
Youth Initiatives |
€18,000 |
|
Youthlink NI |
€25,000 |
120. Deputy Terence Flanagan asked the Minister for Finance if the deduction of local property tax from an invalidity pension has ceased in respect of a person (details supplied) in Dublin 13; and if he will make a statement on the matter. [52516/13]
View answerI am advised by Revenue that the deduction at source payment method in respect of Local Property Tax (LPT) from Department of Social Protection pensions commenced in July 2013. The system operates via an automated data exchange where Revenue electronically captures the information provided by the taxpayer and transfers it to the Department. The data exchange between the computer systems transfers the information exactly as provided by the taxpayer and Revenue cannot validate the accuracy of the details in advance. However, where a deduction fails or is not possible for whatever reason, the Department advises Revenue, who makes contact with the individual concerned.
In the specific case raised by the Deputy, the person in question filed his 2013 LPT 1 Return in May 2013 and requested that payment be deducted from his widower’s non-contributory pension. Revenue subsequently transferred the information to the Department of Social Protection, but the Department rejected the payment request because the person in question was not in receipt of such a pension and confirmed this to Revenue in July 2013. Revenue then made contact with the person in question and on the basis of clarifications provided by him, issued a new payment instruction to the Department in August 2013. Unfortunately this instruction was also rejected by the Department as the case was under review at that time and was outside of the normal processing channels.
On foot of the second rejection notice from the Department, Revenue wrote to the person informing him of the problem with the deduction at source instruction and requesting him to make alternative payment arrangements for both 2013 and 2014. Revenue also used the opportunity to outline the various payment options available to him in preference to deduction at source. Finally, Revenue has confirmed to me that given the circumstances of the case, a member of the LPT team will make direct contact with the person in the coming days and will explain the various payment options to him and will also offer any other assistance that might be required to help him meet his LPT obligations.
121. Deputy Olivia Mitchell asked the Minister for Finance the reason neither GNP nor GDP is used as a key denominator to measure State costs in order to receive more accurate readings on public spending key performance indicators; and if he will make a statement on the matter. [52924/13]
View answerDetails of voted expenditure, including its presentation, are primarily a matter for my colleague, Brendan Howlin T.D., Minister for Public Expenditure & Reform. However, you may be aware that the Department of Public Expenditure & Reform publishes detailed information on the annual amount of Exchequer Expenditure in a number of documents, including on Budget Day and in the Revised Estimates for Public Expenditure. In the Budgetary and Economic Statistics, an annual publication which is available at www.finance.gov.ie, my Department provide a time series of Total Government Expenditure relative to GNP as well as other key fiscal information relative to both GNP and GDP. The 2013 update is due to be completed and published next week.
Our obligations as a member of the Eurozone, means that key fiscal information, including our fiscal targets, have to be measured relative to GDP. GDP is the metric that is used for international comparisons. It may also be useful to note that the Eurostat website provides time series estimates of general government expenditure as a percentage of GDP for all Member States. Accordingly, the fiscal forecasts and outturns prepared by my Department twice-yearly as part of the Stability Programme Update and the budgetary process show the main components of general government receipts and expenditures as a percentage of GDP. Other tables in the annex of these publications show key aggregates in percentage of GDP terms.
122. Deputy Brendan Griffin asked the Minister for Finance when a refund of deductions of local property tax from a local authority tenant's pension will be granted in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [52468/13]
View answerI am informed by the Revenue Commissioners that a key aspect of the work undertaken in regard to Local Property Tax (LPT) was the development of a comprehensive register of residential properties in the State. During the compilation of the Property Register some matching difficulties were encountered when consolidating the various Government and non-Government data sources, and in certain instances the linkage of properties to their relevant owners was not correct. As part of its comprehensive LPT communications strategy, Revenue clearly stated that errors in the compilation of the Property Register were inevitable given the scale of the task and requested that anybody who received incorrect information on their properties should contact the LPT Helpline immediately to avoid unnecessary compliance interventions. Revenue also clearly indicated that such interventions could include mandatory deduction at source from income, pensions, or various other Government payments in accordance with Sections 64, 65, 66 and 67 of the Finance (Local Property Tax) Act 2012 (as amended).
In the specific case raised by the Deputy, I am advised by Revenue the difficulties occurred because the person in question failed to make contact with Revenue on foot of either the original issue of the LPT 1 Return in March 2013 or the subsequent reminder that issued to him in July 2013, to confirm that he is not the liable owner of the property. The July reminder specifically advised the person of the imminent commencement of mandatory deduction at source from his pension if he did not address the issue. Unfortunately, because the person did not contact Revenue to confirm the ownership status of the property, an instruction issued to his pension provider to commence mandatory deductions.
Revenue subsequently received notice in August 2013 from the local authority that the person is in fact a tenant and is not the liable owner of the property. On foot of this notification Revenue immediately instructed the pension provider to cease deduction at source and updated the Property Register to reflect the correct ownership details for the property. I am further advised that in September 2013, Revenue also received correspondence from the Deputy confirming that he would act on behalf of the person in regard to LPT. Revenue has assured me that a refund will issue as soon as evidence of payment is received from either the Deputy or from the person. Such evidence will not otherwise be available to Revenue until P35s are received and processed in March/April 2014.
123. Deputy Pearse Doherty asked the Minister for Finance if he has seen the recent health checks on AIB, Bank of Ireland and PTSB; if so, if he will provide a view on their contents; and if he will make a statement on the matter. [52473/13]
View answer124. Deputy Pearse Doherty asked the Minister for Finance if he will instruct the Central Bank of Ireland to release publicly the full health checks assessments given to AIB, Bank of Ireland and PTSB last week; and if he will make a statement on the matter. [52474/13]
View answerI propose to take Questions Nos. 123 and 124 together.
I can confirm to the Deputy that I have seen the results of the Balance Sheet Assessment as they were a commitment under our Funding Programme and, as with all other such commitments, my Department communicated them to the Troika by the appointed deadline. The results are very technical in nature and I am under a legal obligation to keep the details confidential.
As the BSA is seen as part of the ECB’s Comprehensive Assessment, with the findings being included in the Assessment, the results of the BSA are not being published separately. The interpretation of the results is a matter for the Central Bank, but, I am pleased that the Governor has informed me that there will not be an additional regulatory capital requirement in the banks as a result of this process. It is a matter for the banks to decide regarding the publication of their individual results and I would refer you to the statements made by the individual banks.
125. Deputy Gerald Nash asked the Minister for Finance if he will consider allowing for partial encashment of PRSAs in certain limited circumstances; and if he will make a statement on the matter. [52484/13]
View answerSection 782A of the Taxes Consolidation Act 1997 provides members of occupational pension schemes with a once-off opportunity to access their Additional Voluntary Contributions (AVCs), pre-retirement. The option is available for a three year period from 27 March 2013, the date that the Finance Act 2013 was passed into law. There are a number of reasons why, under existing policies, pre-retirement access to the main benefits from pension plans or schemes is not permitted, the principal one being that these arrangements (and the associated tax reliefs on contributions and pension fund growth) are designed to be long term savings vehicles based on the principle that the benefits will be “locked away” to help fund an adequate income in retirement.
The pre-retirement access to a portion of AVCs which I introduced in Budget and Finance Act 2013 is allowed on a tax-neutral basis – the contributions were tax-relieved at the individual’s marginal rate on the way in and are taxed at the individual’s marginal rate on withdrawal. The take-up of the measure to date has not been particularly significant. I would remind the Deputy, however, that this is a measure which was designed to enable rather than incentivise individuals to access part of their pension savings beyond their regular or compulsory pension contributions. It is important that individuals continue to provide for their retirement and, it would appear, most individuals with AVCs have to date decided to preserve their AVC pension savings. For these reasons, I have no plans to extend the measure beyond AVCs.
126. Deputy Stephen S. Donnelly asked the Minister for Finance if his attention has been drawn to the growing use of crypto-currencies such as Bitcoin; if he has concerns regarding the legality of using such currencies as de facto legal tender in any transactions in this jurisdiction; if he has any concerns regarding the use of such currencies to circumvent taxes and any potential loss to the Exchequer as a result; and if he will make a statement on the matter. [52492/13]
View answerI have been informed by the Central Bank that it does not regulate Bitcoin. Crypto-currencies are not legal tender in the Euro area. The Revenue Commissioners have advised me that e-commerce, including the use of virtual currencies, present a challenge to tax administrations throughout the world. Specifically, regarding the possible use of crypto-currencies (including Bitcoin) to circumvent taxes, the Revenue Commissioners and tax administrations in other countries are actively monitoring developments. Because Bitcoin is a combination of some factors that constitute a commodity and some that constitute a currency, the implications for taxation are varied.
If Bitcoins are received as payments in commerce, then the same rules in place for payments received in other foreign currencies also apply. If speculation on Bitcoin occurs, the taxation rules that would apply to any gain are applicable. More specifically, VAT is generally chargeable on the total consideration for goods and services, including all taxes, commissions, costs and charges (excluding the VAT chargeable in respect of that supply). This general rule is based on the EU VAT Directive. Where the consideration does not consist of, or does not consist wholly of, and amount of money, VAT is chargeable by reference to what might reasonably be expected to be the open-market price of the good and services supplied. The VAT Regulations require that the amount of tax included on an invoice is expressed in Euro. The exchange rate to be used for non Euro currency transactions is either the latest selling rate for the foreign currency recorded by the European Central Bank or alternative method of determining the exchange rate that is agreed with the Revenue Commissioners.
More broadly, I am advised that shadow economy activity has always been attracted to cash businesses, in large part because of the difficulties in traceability and record keeping. Bitcoin may present a cash substitute for some tax evaders. While it has the potential to increase instances of non-compliance, I am advised that, currently, the threat posed to the Exchequer is likely to be small. It is probable too that for some evaders, it represents a new opportunity for existing non-compliance, rather than a new form of evasion.
127. Deputy Gerald Nash asked the Minister for Finance if he will give consideration to providing an exemption to the universal social charge in cases where medical expenses are greater than taxable income, particularly for residents of nursing homes; and if he will make a statement on the matter. [52562/13]
View answerAs the Deputy will be aware, the Universal Social Charge (USC) was introduced in Budget 2011 to replace the Income Levy and Health Levy. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit. The USC is a charge on the gross income of individuals if their gross income exceeds the USC threshold of €10,036 per annum. It applies on a broad base with very few exceptions.
Section 469 of the Taxes Consolidation Act 1997 provides for tax relief in respect of health expenses in the provision of health care incurred by an individual or an individual’s spouse or civil partner, on their own behalf or on behalf of someone else. Relief is provided at the standard rate except in the case of nursing home fees which are provided at the marginal rate.
There is no relief against Universal Social Charge for health expenses. However, it should be noted that payments from the Department of Social Protection such as the State Pension are exempt from the Universal Social Charge (USC). In addition, individuals aged 70 and over, provided their total income does not exceed €60,000, are not liable to the top rate of charge and payments from the Department of Social Protection will not be taken in to account in determining if an individual has exceeded the €60,000 threshold.
The Deputy will be aware that the Nursing Home Support Scheme Act 2009 was introduced to provide financial support for people assessed as needing long-term nursing home care. The scheme is founded on the core principles that long-term care should be affordable and that a person should receive the same level of State support whether they choose a public, voluntary or private nursing home. Since the 27th October 2009, the Nursing Homes Support Scheme is the single funded means of accessing long-term nursing home care for all new entrants.
Any contribution made by an individual in defraying expenses in the nature of maintenance or treatment in a nursing home, where that individual has received State support under section 3 of the Nursing Home Support Scheme Act 2009, is treated as health expenses qualifying for relief. This relief is given at the marginal rate of tax but cannot exceed an amount which reduces the income tax liability for the year to nil. As stated previously, this compares with tax relief at the standard rate for any other health expenses. Given the additional tax relief currently available for nursing home fees I would not be in favour of providing an additional relief from USC for such fees.
128. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide details of the auditors who audited Irish banks prior to the introduction of the bank guarantee; if these audit companies continue to have an audit role within the same banks covered by the guarantee; and if he will make a statement on the matter. [52671/13]
View answerMay I bring to the Deputy’s attention that the details of the auditors of individual banks are publicly available and published in the Annual Reports of the various institutions. For assistance you will find the details below.
AIB
2008 – 2012 KPMG
2013 Deloitte & Touche - following an open tender process
EBS
2008 – 2010 Ernst & Young
2011 KPMG when merged with AIB
BOI
2008 - 2013 Price Waterhouse Coopers (PWC)
ptsb
2008 - 2012 KPMG
2013 PWC – following an open tender process
IBRC
2007 Ernst & Young
2009-2012 Deloitte & Touche
The appointment of the auditors is a matter for the Board and shareholders of the institution as it is voted on at each Annual General Meeting.
