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Thursday, 13 Mar 2014

Written Answers Nos. 59-70

Ireland Strategic Investment Fund Investments

Questions (60)

Michael McGrath

Question:

60. Deputy Michael McGrath asked the Minister for Finance the number of projects in which the Ireland strategic investment fund has invested; the number of new jobs created as a result of these projects; and if he will make a statement on the matter. [12683/14]

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Written answers

In anticipation of the establishment of the Ireland Strategic Investment Fund (ISIF), the National Pensions Reserve Fund (NPRF) has committed to a number of investments in Ireland including infrastructure, water, long-term financing for SMEs (both credit and equity) and venture capital.  A detailed table of the NPRF commitments to Irish investments at 31 December 2013 is set out as follows:

NPRF and 3rd Party Irish Commitments 31/12/2013

NPRF Commitment

Capital (€m)

3rd Party

Capital (€m)

Total Project

Size (€m)

Multiple of NPRF

Commitment

SME Equity Fund - Better Capital

50

50

100

2.0x

SME Equity Fund - Cardinal Carlyle

125

125

250

2.0x

SME Credit Fund - BlueBay

200

250

450

2.3x

China Technology Fund (Note 1)

72

36

72

1.0x

Innovation Fund Ireland

125

125

250

2.0x

Local Venture Capital Funds

81

320

401

5.0x

Silicon Valley Bank (Note 2)

36

72

72

2.0x

Irish Water

250

-

250

1.0x

Irish Infrastructure Fund

250

66

316

1.3x

Irish Forestry

35

187

223

6.3x

Committed to Date

1,225

1,231

2,384

2.0x

Note 1: Included in the NPRF commitment is a €36 million commitment to a global investment fund, which was necessary to secure the third party capital investment of €36 million in Ireland.

Note 2: The NPRF commitment of €36 million is to global investment funds managed by SVB Capital, the investment arm of SVB Financial Group. This investment was required to secure the €72 million Silicon Valley Bank investment in Irish companies.

In addition to the what is contained in the table, the National Pensions Reserve Fund has provided a stand-by credit facility for the N11 and Schools Bundles 3 Public-Private Partnership projects. The mandate for the ISIF will be to invest on a commercial basis to support economic activity and employment in Ireland. This means the ISIF will have a dual objective both investment return and economic impact - and there is little precedent for sovereign funds globally investing with such a "double bottom line", although a number of such funds are beginning to emerge.

In recent months, the NTMA, in consultation with the Department of Finance and a number of other Government Departments and Agencies, has been developing a new Economic Impact Framework, which will be a key element of the ISIF Business Plan. The ISIF Business Plan will be approved in due course by the new NTMA Board. The Economic Impact Framework will seek to identify target areas for investment which have higher potential economic and employment impact, and will also facilitate the identification of categories of investment that would be expected to assist and accelerate normalsation of capital markets in Ireland post the financial crisis. It is expected that the ISIF's investment strategy will involve a combination of investment through funds (such as the SME funds and China Ireland Technology Fund that the NPRF has committed to) and directly (such as the NPRF's participation in recent PPP projects and in the pre start-up stage financing of Irish Water). An important element of the ISIF strategy will be where possible for the ISIF to be a cornerstone investor, thereby acting as a catalyst for additional third party investors. This will significantly increase the economic impact that can be achieved in Ireland.

Because of uncertainty regarding the nature of opportunities that emerge or can be developed, it is not clear at this stage what will be the nature and shape of the ISIF's ultimate investment portfolio and the quantum of co-investment that can be achieved. There will also be a time lag between the NPRF/ISIF commitment and when the economic impact takes place. Therefore it is not feasible at this stage to estimate in advance what the economic activity and employment impacts of the ISIF may be. The ISIF Business Plan and the new NTMA Board are expected to address this issue. In the interim, the NTMA is developing its capabilities for collating and analysing data to measure and report on economic impact on an ex-post basis (i.e. after the investment has been made). This will require a completely new data set to be sought and reported on by funds and the underlying companies in which funds have invested and by companies or project sponsors in which the NPRF has invested directly. While it is standard practice that companies report financial information to their investors, the new ISIF mandate will also require metrics that can be used to help assess economic impact to be reported. The NTMA expects to be able to publish a preliminary assessment of the economic impact of the investments made to date in Ireland by the NPRF during the second quarter of this year.

Non-Resident Companies

Questions (61)

Michael McGrath

Question:

61. Deputy Michael McGrath asked the Minister for Finance the number of Irish-incorporated companies that are not judged to be resident here under the test of management and control and that have advised the Revenue Commissioners as to where they are actually resident since the change announced in budget 2014; and if he will make a statement on the matter. [12684/14]

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Written answers

Further to the announcement I made in Budget 2014, a change in company residence rules was made in Section 39 of the Finance (No. 2) Act 2013 to provide that where, by reason of a mismatch of residence rules with a treaty-partner country, an Irish-incorporated company would neither be resident in that country nor in the State and, accordingly, would not be resident in any country, the company will then be treated as resident in the State for tax purposes. The change will ensure that the mismatch of company residence rules does not allow the Irish-incorporated company to be stateless in terms of its place of tax residency. The change applies from 24 October 2013 for newly-incorporated companies (i.e. companies incorporated on or after that date) and from 1 January 2015 for companies incorporated before 24 October 2014.

I am informed by the Revenue Commissioners that they have not, to date, been advised by any company that is or will be affected by the change in residence rules as to where it is actually resident following the announcement of the change in the Budget. However, any company that becomes resident in the State by virtue of the change will, from the time it becomes so resident, be chargeable to corporation tax on all of its profits wherever arising and will be required to file a corporation tax return for each accounting period for which it is an Irish resident company.  A corporation tax return is required to be filed within nine months after the end of each accounting period.

Corporation Tax

Questions (62, 63)

Terence Flanagan

Question:

62. Deputy Terence Flanagan asked the Minister for Finance the position regarding the corporation tax of a company (details supplied); and if he will make a statement on the matter. [12720/14]

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Terence Flanagan

Question:

63. Deputy Terence Flanagan asked the Minister for Finance his views on media reports regarding a company (details supplied) paying €36 million tax on €7.11 billion profits at its Irish unit and avoiding paying more than €850 million in tax here between 2004 and 2008; and if he will make a statement on the matter. [12736/14]

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Written answers

I propose to take Questions Nos. 62 and 63 together.

I am precluded from discussing the tax affairs of any particular individual or company. However, I am aware of recent media reports which refer to the ways that some companies structure their international tax affairs to minimise their tax costs, and the fact that some of these reports make reference to Irish companies being part of these structures.  I understand that some of these reports have suggested that some companies in multinational groups pay Irish corporation tax at rates that are significantly lower than 12.5%. It is important to state clearly that such companies are not paying a low rate of Irish tax.  All companies operating in Ireland, whether they are domestic businesses or multinationals, are chargeable to corporation tax at the 12.5% rate on the profits that are generated from their trading activities here. A higher 25% rate applies in respect of investment, rental and other non-trading profits, as well as certain petroleum, mining and land-dealing activities, and chargeable capital gains are taxable at the capital gains tax rate of 33%.

The reports concerned appear to have incorrectly attributed to Ireland profits that represent the return due to assets, owned by group companies that are not resident in Ireland. It is incorrect to relate the 12.5% corporation tax rate to both the profits of the Irish-resident group companies and the profits of non-resident group companies which are not profits chargeable to Irish corporation tax.  By mixing up the Irish profits and the foreign profits of multinational groups like this, these reports can produce an average tax rate for the companies concerned that is lower than 12.5% and an incorrect inference that the full Irish profits are not being charged.

From an Irish perspective, we ensure that the profits arising in Ireland are taxed at our 12.5% rate of corporation tax.  We do not seek to charge profits properly attributable to other jurisdictions. The ability of entities to lower their world-wide rate of tax using international structures reflects the global context in which Ireland and indeed all countries operate.  Differences arise in the legal and tax systems between countries.  International tax-planning takes account of these differences in national systems and rules.  The best way to combat such arrangements is for countries to work together to examine these structures and to consider how international rules can be amended to ensure fair levels of taxation.

The appropriate action is being considered in this regard by the OECD as part of their project on Base Erosion and Profit Shifting and Ireland is participating fully in this process. To demonstrate our commitments in this regard, on Budget Day last year, I published Ireland's International Tax Strategy, which can be viewed on the Department's website.  This document sets out our commitments in relation to international tax and highlights our strong support for global action to address harmful tax competition.  Ireland is very active in international fora that deal with these issues, such as the OECD's Forum on Harmful Tax Practices and the EU Code of Conduct Group. Ireland wants to be part of the solution to this global tax challenge, not part of the problem.  That is why I introduced a change last year in Finance (No. 2) Act 2013 which amended  Ireland's company tax residence rules to ensure that an Irish-registered company cannot be 'stateless' in terms of its tax residency.

Universal Social Charge Payments

Questions (64)

Sandra McLellan

Question:

64. Deputy Sandra McLellan asked the Minister for Finance the reason a person who is employed in another country (details supplied) who is liable to pay €8,000 under the universal social charge in this State per year must pay a second preliminary tax of €8,000 upfront for next year, even though they are an employee and not self-employed; and if he will make a statement on the matter. [12737/14]

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Written answers

I am advised by the Revenue Commissioners that based on the limited information given it is not possible to provide an answer to the question.  However, general information on payment of preliminary tax is available from the Revenue website at: http://www.revenue.ie/en/tax/it/leaflets/it10.html#section3.

Apprenticeship Programmes

Questions (65)

Bernard Durkan

Question:

65. Deputy Bernard J. Durkan asked the Minister for Education and Skills the extent to which his Department continues to liaise with the Departments of Jobs, Enterprise and Innovation and Social Protection with a view to ensuring an adequate supply of apprenticeships throughout all sectors in the economy; and if he will make a statement on the matter. [12700/14]

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Written answers

The Independent Apprenticeship Review Group, who were tasked with carrying out the Apprenticeship Review submitted their report to my Department in December 2013. The group made comprehensive recommendations both with regard to the expansion of apprenticeship into new industrial sectors as well as to the existing apprenticeship trades. The review group recommends that its proposals be discussed further with stakeholders, including relevant Government Departments, to examine how implementation can be progressed as quickly as possible. As an initial step in this process my Department has already begun consulting with those key stakeholders in order to establish a suitable framework and model for our Apprenticeship System.

Employment Support Services

Questions (66)

Bernard Durkan

Question:

66. Deputy Bernard J. Durkan asked the Minister for Education and Skills if, in any circumstances, a higher rate of payment exists for single persons as opposed to those who are married when applications for training-upskilling through SOLAS are made; and if he will make a statement on the matter. [12710/14]

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Written answers

The amount of the training allowances paid by SOLAS to participants on training courses is aligned to the participant's social welfare entitlement. A person's social welfare entitlement is determined by the Department of Social Protection and is assessed on a person's needs. On commencement of a training course each participant provides evidence of the amount of their social welfare entitlement and this amount is paid to the participant for the duration of the training course.

School Accommodation

Questions (67)

Dan Neville

Question:

67. Deputy Dan Neville asked the Minister for Education and Skills the position regarding funding in respect of a school (details supplied) in County Limerick; and if he will make a statement on the matter. [12477/14]

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Written answers

The school to which the Deputy refers applied to my Department for additional accommodation including a mainstream classroom, learning support/resource accommodation and ancillary accommodation. As the Deputy will be aware, my Department recently approved a significant devolved grant for 1 mainstream classroom and 3 learning support/resource rooms to allow the school to replace all of its temporary accommodation. Given the current financial constraints within which my Department is operating, the position is that priority is being given to school applications for essential mainstream classroom and special education accommodation. In this regard, the provision of ancillary accommodation including a staff room and a secretary's office cannot be prioritised at this time.

School Transport Eligibility

Questions (68)

Martin Heydon

Question:

68. Deputy Martin Heydon asked the Minister for Education and Skills the financial supports available to assist families to cover the cost of school transport in circumstances where they have medical cards but are required to pay transport charges because the school attended by their children is not the closest to their home; and if he will make a statement on the matter. [12495/14]

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Written answers

The purpose of my Department's School Transport Schemes is, having regard to available resources, to support the transport to and from school of children who reside remote from their nearest school. While it is the prerogative of parents to send their children to the school of their choice, eligibility for school transport is to the nearest school or education centre. Children who are not eligible for school transport may apply for transport on a concessionary basis only subject to a number of terms and conditions that are detailed in the scheme. There is no provision under the terms of my Department's School Transport Scheme to assist families of children who hold valid medical cards and are availing of school transport on a concessionary basis.

Only children who are eligible for school transport and who hold valid medical cards (GMS Scheme) are exempt from paying the annual charge. However, the annual charge for school transport, which may be paid in two instalments, is a contribution towards the overall cost and does not reflect the true cost of providing these services.

Special Educational Needs Service Provision

Questions (69)

Finian McGrath

Question:

69. Deputy Finian McGrath asked the Minister for Education and Skills the position regarding a special needs assistant in respect of a person (details supplied) in Dublin 13. [12532/14]

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Written answers

The detailed supplementary assignment arrangements for SNAs for the 2013/2014 school year are set out in Departmental Circular 0037/2013 which issued on 1 July 2013 and which is available on the Department's website at the following address: http://www.education.ie/en/Circulars-and-Forms/Active-Circulars/cl0037_2013.pdf.

With effect from 1 May 2013 once an SNA with a minimum of one year's service is notified by his/her employer that he/she is to be made redundant then he/she shall be deemed to be a member of a Supplementary Assignment Panel for SNAs. With the exception of SNAs who have been re-employed on permanent contracts or have chosen to opt out of the panel in accordance with the terms of Paragraph 39 of the circular, all SNAs who have been made redundant since 1 May 2013 are members of the SNA Supplementary Assignment Panel. When an employer has a vacancy to fill, they must undertake the recruitment process in accordance with the provisions outlined in paragraphs 17-32 of Circular 37/2013. The Department has set up a dedicated e-mail address to deal with all queries in relation to the SNA Supplementary Assignment Panel and any queries in respect of the operation of the Panel can be directed to this dedicated e-mail address snasupplementpanel@education.gov.ie

Special Educational Needs Data

Questions (70)

Colm Keaveney

Question:

70. Deputy Colm Keaveney asked the Minister for Education and Skills the total number of pupils currently within Gaelscoileanna; the total number of special needs assistants working in Gaelscoileanna; the total number of pupils and SNAs currently within the primary sector as a whole; and if he will make a statement on the matter. [12534/14]

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Written answers

I wish to advise the Deputy that the number of pupils enrolled in Primary schools (including Special Schools) for the 2013/14 school year is 536,319 and the number of pupils enrolled in all-Irish primary schools in the current school year is 41,659 pupils. I wish to advise the Deputy also that the National Council for Special Education (NCSE), through its network of local Special Educational Needs Organisers (SENOs), is responsible for processing applications from schools for special educational needs supports, including the allocation of Special Needs Assistants (SNAs) to schools. The NCSE operates within my Department's established criteria for the allocation of Special Education supports and the staffing resources available to my Department.

In December 2013, this Government agreed to increase the cap on SNAs by 390, increasing by 170 posts to 10,745 at the end of 2013, and by a further 220 posts to 10,965 at the end of 2014. These additional posts provided will enable the National Council for Special Education to continue to allocate support to children who need it in order that they may fully participate in and benefit from their education. The NCSE allocates a quantum of SNA support for each school annually taking into account the assessed care needs of children qualifying for SNA support. The NCSE has published details of all of their allocations for resource teaching and SNA support for the 2013/2014 school year on their website www.ncse.ie, which detail the allocations made for each school on a per county basis. The total number of posts allocated by the NCSE in the current school year is approximately 10,590 posts.

The NCSE has invited schools to make applications for SNA support for the coming 2014/15 school year by 26 March 2014. All schools who wish to make applications to the NCSE for SNA support for children who have assessed care needs, should now submit such applications to the NCSE for their consideration. Details of the NCSE application criteria are available at www.ncse.ie.

All schools also have the names and contact details of their local SENO. Parents may also contact their local SENO directly to discuss their child's special educational needs, using the contact details available on www.ncse.ie. My Department does not retain information on the numbers of SNAS in Gaelscoileanna. I am advised by the NCSE that they also do not breakdown the numbers of SNAs allocated to different school sectors. They have advised me however that they will endeavour to ascertain this number on the basis of this request. Accordingly I have requested the NCSE to respond to you directly when the requested information is available.

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