Written Answers Nos. 46 - 57
46. Deputy Michael McGrath asked the Minister for Finance the position regarding the State supported banks; the proportion of their outstanding loans that are on a non-recourse basis; and if he will make a statement on the matter. [19802/14]
View answerI can confirm for the Deputy that I have received the following comments from the banks in relation to his question:
Allied Irish Banks:
AIB's underwriting criteria is based on the repayment capacity of the borrower. As a general rule, personal loans to individuals are not made on a non-recourse basis. Where non-recourse lending occurs (typically on higher value transactions) an appropriate repayment source must be identified. AIB does not categorise loans on a recourse or non-recourse basis.
All disclosures in relation to AIB's loan portfolios are contained on pages 71 to 153 of AIB's 2013 Annual Financial report.
Bank of Ireland:
Comprehensive asset quality disclosures can be found from pages 380 to 423 of the Bank's Annual Report for the year to 31st December 2013. Please note Bank of Ireland does not categorise loans on a recourse or non-recourse basis in its Annual Report.
Permanent TSB:
The Group as a norm, given its customer base and lending product profiles did not engage in non-recourse lending. It has circa €360m (circa 1%) in non-recourse lending out of a total loan portfolio of €33bn as at March 2014.
47. Deputy Éamon Ó Cuív asked the Minister for Finance if he will give any special relief from income tax to those who are forced to sell their entitlements due to the EU rules on leased entitlements under the new Common Agricultural Policy 2014-2020; and if he will make a statement on the matter. [19812/14]
View answerI assume the Deputy is referring to single farm payment entitlements. There are potential tax implications arising from the disposal of such entitlements, mainly capital gains tax (CGT) and VAT.
A single farm payment entitlement is a chargeable asset for capital gains tax (CGT) purposes and once acquired it may be disposed of by way of sale, gift etc. Accordingly, gains arising from the disposal of single farm payment entitlements are chargeable to CGT in the same way as gains made on any other chargeable assets. Where total gains in any year do not exceed €1,270 they are not chargeable to CGT.
With regard to the transfer of single farm payment entitlements for VAT purposes, where a payment entitlement is sold without land then VAT is due at the standard rate on the sale if the sale proceeds exceed the relevant threshold for VAT registration (currently €37,500). However, where a payment entitlement and land are sold together to a person who intends to carry on the farming business, then the sale may be treated as the transfer of a business and not subject to VAT. There may be other less significant tax implications in certain instances.
I have no discretion under EU law to provide for a VAT exemption on the disposal of the payment entitlement assets. Having considered the matter, however, I was prepared to provide for an exemption from CGT on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an "active" farmer by 15 May 2014. I made an announcement to this effect earlier today.
I propose to include appropriate provisions to give effect to the CGT exemption in Finance Bill 2014 which will be published shortly after Budget 2015 in the Autumn. While the CGT due on any chargeable gains arising from the disposal of farm payment entitlements made by 15 May would have to be paid in the normal course by 15 December 2014, the Revenue Commissioners have indicated that they will not require such payments to be made pending the passing of the Finance Bill and the coming into law of the relevant CGT amendments to be included in that Bill.
48. Deputy Bernard J. Durkan asked the Minister for Finance the maximisation of entitlement to income tax credits in the case of a person (details supplied) in County Kildare; if a P21 will issue in their case; and if he will make a statement on the matter. [19848/14]
View answerI am advised by the Revenue Commissioners in relation to the first person named, that they have written to the person concerned for the information necessary to establish his tax credit entitlement. A PAYE Balancing statement (P21) will be issued when position is clarified.
In relation to the second person referred to by the Deputy, Revenue records indicate that the person concerned is entitled to the single person's tax credit. The person is self employed and accordingly a PAYE Balancing statement (P21) cannot be issued. However notices of assessment for the years of assessment 2012 and 2013 will be issued on receipt of completed returns of income for those tax years.
49. Deputy Bernard J. Durkan asked the Minister for Finance if and when a refund of overpayment of income tax will issue in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [19849/14]
View answerI am advised that Section 1006A TCA 1997 provides that where a taxpayer is due a refund of tax, Revenue can offset the amount owed or part of the amount owed to any other tax liability that the person may have.
I am further advised that before Revenue processes any refund of tax, all of the taxheads that the person is registered for are examined to ensure there are no debts outstanding. Where any tax is identified as outstanding the refund amount is allocated to that debt before any remaining balance is issued to the taxpayer.
In regard to the specific case to which the Deputy refers, Revenue has confirmed to me that the person in question is due a refund in respect of 2013 PAYE liability. However the person also has outstanding charges in respect of both 2014 Local Property Tax (LPT) and 2012 arrears of Household Charge (HHC). These offsets have now been completed and the remaining balance will shortly issue to the person.
50. Deputy Seán Kyne asked the Minister for Finance if, in the context of the rising rate of obesity and the problem of food poverty, consideration will be given to the introduction of a price subsidy for healthy foods to encourage healthy and nutritious diets; if Ireland's membership of the European Union would pose a challenge for this; if such a subsidy is possible; the way it could be structured and applied; and if he will make a statement on the matter. [19850/14]
View answerI assume the Deputy is referring to the possibility of applying consumer price subsidies to healthy and nutritious foods to incentivise the consumption of those foods. In this regard, I would point out that as Minister of Finance I do not have a role in providing price subsidies to food products.
However, I do have responsible for taxation policy and the Deputy may be aware that the VAT system already provides for a distinction between different types of foods. While basic foodstuffs, for example, bread, butter, tea, meat, milk and vegetables are subject to the zero rate of VAT, other foods such as sweets, chocolates, chocolate wafers and biscuits, confectionery, crisps, ice-creams and soft drinks are subject to the standard VAT rate of 23%.
51. Deputy Michael McGrath asked the Minister for Finance the position regarding the disposal or transfer of the remaining Irish Bank Resolution Corporation loan book; if he has issued a direction order on the matter; and if he will make a statement on the matter. [19867/14]
View answerGiven the success of the sales process to date the Special Liquidators have confirmed that they now expect the proceeds from the sale of IBRC assets to be sufficient to fully discharge the outstanding secured debt owed to NAMA. Therefore the transfer of assets to NAMA as part of the Special Liquidation is no longer required. In order to effect this I have withdrawn the existing direction to NAMA to acquire assets from the Special Liquidators. In addition I have also issued a Ministerial Instruction to the Special Liquidators to confirm that NAMA will no longer be required to participate in the purchase of assets from IBRC.
The Special Liquidators will be required to devise and manage a new sales process in relation to the remaining assets in IBRC.
52. Deputy Michael McGrath asked the Minister for Finance if the Irish Bank Resolution Corporation mortgage holders whose mortgages are currently still with IBRC will get an opportunity to bid for their own loans; and if he will make a statement on the matter. [19868/14]
View answerAs the Deputy is aware, NAMA will not now be obliged to purchase unsold IBRC assets at their independent valuation as previously envisaged.
The Special Liquidators will now devise and manage a further sales process in respect of the unsold residential mortgages in a manner that maximises the return to all remaining creditors of IBRC, including the State.
This process is being finalised. However, the Special Liquidators will be writing in the coming weeks to borrowers with unsold loans to inform them of the further sales process in respect of their loans.
53. Deputy Michael McGrath asked the Minister for Finance when the proposed strategic investment fund will be put on a statutory footing; the number of staff it will have; what its mandate will be; and if he will make a statement on the matter. [19874/14]
View answerThe National Treasury Management Agency (Amendment) Bill 2014 will formally establish NewERA and the Ireland Strategic Investment Fund (ISIF) and will reform the governance of the National Treasury Management Agency (NTMA). Publication of the Bill is expected very shortly.
The legislation will re-orient the National Pensions Reserve Fund into the Ireland Strategic Investment Fund with a mandate to invest on a commercial basis in Ireland with a view to supporting economic activity and employment. As set out in the Medium-Term Economic Strategy, the establishment of NewERA and the ISIF will play a catalytic role in accelerating investment in strategic infrastructure and providing commercial financing and investment in areas that support economic growth and employment. The ISIF will have a dual objective both investment return and economic impact.
Staffing levels for the ISIF will be a matter for the Agency. However, I note that the Agency has recently advertised a number of posts in light of the establishment of the ISIF.
54. Deputy Pearse Doherty asked the Minister for Finance the reason a person (details supplied) has had an adjustment to their tax which means they are now losing €31.66 per week from their pension entitlement; and if he will make a statement on the matter. [19903/14]
View answerI am advised by the Revenue Commissioners that the person in question is in receipt of an occupational pension and a state pension from the Department of Social Protection.
Following receipt of the person's return of income for the year 2013 an incorrect tax credit certificate issued for 2014. Revenue have now arranged for the issue of an amended certificate to both the taxpayer and his pension provider who will refund any overpayment of tax due to him since 1 January 2014.
The Revenue Commissioners apologise for the inconvenience caused. Should the person require further information he can contact: Angela Creighton, PAYE Manager City Centre/North City District, 9 15 Upper O'Connell Street, Dublin 1, telephone number 01 - 8655782.
55. Deputy Noel Coonan asked the Minister for Education and Skills the position regarding a building project for a school (details supplied) in County Tipperary; the timeframe for completion of works; and if he will make a statement on the matter. [19748/14]
View answerThe major building project for the school referred to by the Deputy is currently at an advanced stage of architectural planning - Stage 2b - Detailed Design. This stage includes the applications for Fire Safety Certificate and Disability Access Certificate and the preparation of tender documents. The Stage 2b submission has been received and is currently under review by my Department. When this review is completed officials from my Department will contact the Board of Management with regard to the potential, at that time, for the further progression of this project.
Due to competing demands on my Department's capital budget imposed by the need to prioritise the limited funding available for the provision of additional school accommodation to meet increasing demographic requirements it was not possible to include this project in the 5 year construction programme announced in March 2012.
School building projects, including the project referred to by the Deputy, which have been initiated but not included in the current five year construction programme will continue to be progressed to final planning stages in anticipation of the possibility of further funds being available to my Department in the future.
56. Deputy Derek Nolan asked the Minister for Education and Skills the complaints procedure available to parents who wish to complain about certain actions of board of management in a school; and if he will make a statement on the matter. [19758/14]
View answerThe Deputy will be aware that under the Education Act 1998, legally, all schools are managed by school Boards of Management, on behalf of the school patrons or trustees. Accordingly, whereas I provide funding and policy direction for schools, neither I nor the Department have legal powers to instruct schools to follow a particular course of direction with regards to individual complaint cases, or to investigate individual complaints except where the complaint involves a refused enrolment, expulsion or suspension, in accordance with Section 29 of the 1998 Education Act.
In dealing with parental complaints, my Department's role is to clarify for parents how their grievances and complaints against schools can be progressed. Where a parent feels that the school's board of management has failed to investigate or adequately investigate their complaint, they should contact the Ombudsman for Children.
The Office of the Ombudsman for Children may independently investigate complaints about schools recognised with the Department of Education and Skills, provided the parent has firstly and fully followed the school's complaints procedures. The key criterion for any intervention by the Ombudsman for Children is that the action of the school has had a negative affect on a child. The office can be contacted at Ombudsman for Children's Office, Millennium House, 52-56 Great Strand Street, Dublin1, (Ph) 1800 20 20 40 or (01) 8656800, E-mail oco@oco.ie
The Deputy may be aware of my commitment to the creation of a parents' charter, to strengthen the relationships between parents and schools and to set out the rights of parents. This charter may be underpinned by legislation if necessary. I believe there is a need to look at how a stronger culture of valuing parental involvement in the level of each individual school can be created.
57. Deputy Martin Ferris asked the Minister for Education and Skills the reason a person (details supplied) in County Limerick has not yet received their student grant. [19761/14]
View answerOfficials in my Department have confirmed with Student Universal Support Ireland (SUSI) that payments commenced to the student referred to by the Deputy on 18 December 2013. Five payments in total have issued to the bank account provided by the student.
