Written Answers Nos. 78-88
78. Deputy Brendan Griffin asked the Minister for Finance his views on taxation policies in budget 2015 to assist job retention and creation in the construction industry, such as the application of a 9% rate of VAT for the construction of residential properties; and if he will make a statement on the matter. [34949/14]
View answerIt is not the practice to comment on what measures may or may not be introduced in advance of the Budget.
However, as you are aware, under EU and Irish VAT law while it is possible to apply the 9% VAT rate to construction of residential property, historically the same VAT rate applies to all construction in Ireland. I have no plans to apply different VAT rates to different construction services as this would lead to administrative complications and could lead to tax abuse. In addition, any reduction in the rate of VAT would come at a cost to the Exchequer.
79. Deputy Brendan Griffin asked the Minister for Finance the immediate costs to the Exchequer of raising the point of entry for universal social charge eligibility; if he will provide examples in tabular form of threshold increases; the number of taxpayers who would be affected and the costs involved; his views that action on this would be an effective way of easing the tax burden for the lowest paid workers in the State; and if he will make a statement on the matter. [34950/14]
View answerI assume that Deputy means that only the entry point to the charge of USC is increased and that once the increased threshold has been reached that full liability for USC at the current rates and thresholds would apply.
On that basis, I am informed by the Revenue Commissioners that the estimated first and full year costs, with reference to 2015 incomes, of increasing the exemption threshold for the Universal Social Charge (USC) to €11,000, €12,000, €13,000, €14,000 and €15,000 and the numbers affected by each increase are detailed in the following table.
|
USC Threshold |
First Year Cost to the Exchequer €m* |
Full Year Cost to the Exchequer €m* |
Numbers Affected |
|
€11,000 |
8 |
12 |
38,400 |
|
€12,000 |
19 |
26 |
80,500 |
|
€13,000 |
30 |
41 |
117,800 |
|
€14,000 |
42 |
59 |
155,700 |
|
€15,000 |
55 |
77 |
192,400 |
*Assuming no change to the income levels at which the standard USC rates apply.
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. Married persons or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
80. Deputy Brendan Griffin asked the Minister for Finance the immediate costs to the Exchequer of lowering the standard and higher rates of income tax; if he will provide examples in tabular form of decreases by 0.5%, 1%, 1.5% and 2%; the number of taxpayers who would be affected and the costs involved; his views that action on this would be an effective way of easing the tax burden for workers; and if he will make a statement on the matter. [34951/14]
View answerI am informed by the Revenue Commissioners that the estimated first and full year costs, with reference to 2015 incomes, of decreasing the standard rate of income tax by 0.5%, 1%, 1.5% and 2% and the numbers affected by such decreases are as detailed in the following table.
|
Rate Decrease |
First Year Cost to the Exchequer €m |
Full Year Cost to the Exchequer €m |
Numbers Affected |
|
0.5% |
188 |
254 |
1.4m |
|
1% |
374 |
506 |
1.4m |
|
1.5% |
558 |
754 |
1.4m |
|
2% |
738 |
1,000 |
1.4m |
I am also informed that the estimated first and full year costs, with reference to 2015 incomes, of decreasing the higher rate of income tax by 0.5%, 1%, 1.5% and 2% and the numbers affected by such decreases are as detailed in the following table.
|
Rate Decrease |
First Year Cost to the Exchequer €m |
Full Year Cost to the Exchequer €m |
Numbers Affected |
|
0.5% |
82 |
117 |
.7m |
|
1% |
164 |
234 |
.7m |
|
1.5% |
246 |
350 |
.7m |
|
2% |
328 |
467 |
.7m |
These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. Married persons or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
The Deputy will be aware that I am on record stating that I believe that the burden of income tax in Ireland is too high and that it is my intention to reduce it when the state of the public finances allows me to do so. Furthermore, the recent Government Statement of Priorities contains a commitment to include a tax reform plan with the upcoming Budget, setting out how the Government will reduce the 52% marginal rate of income tax on low and middle income earners over a number of years.
81. Deputy Brendan Griffin asked the Minister for Finance the amount he expects the Government to save per annum as a result of paying off the State’s bailout loans early; and if he will make a statement on the matter. [34984/14]
View answerI am proposing to make an early repayment of a portion of Ireland's IMF programme loan. Specifically the proposal is to make an early repayment of up to €18 billion of our €22.5 billion IMF loan, which is the portion subject to the highest rate of charge, and to replace it with less expensive market funding subject to prevailing market conditions.
For this to succeed, a waiver of the mandatory proportional early repayment clauses which are included in each of our loan agreements with the EFSF and the EFSM, and with our bilateral lenders, the U.K., Denmark and Sweden is required.
Our request for such a waiver was discussed at the meetings of the Eurogroup and ECOFIN Ministers last weekend. There was broad political support among the Ministers for the proposal. However, this support is subject to necessary national approval procedures including parliamentary approval in some Member States.
Estimates provided by the NTMA show that in a situation where the recent reduction in market yields is maintained it would be possible to achieve savings of the order of €1.5 billion. However, the actual savings that are generated from early repayment will depend on a number of factors such as the size of any repayments, general market conditions and the cost of the replacement market funding.
82. Deputy Brendan Griffin asked the Minister for Finance the increased yield to date in 2014 compared to the same period last year and in 2012 in taxes and Government charges related to the sale of new motor vehicles; the anticipated end of year increase in revenue; his views that this increase in revenue will be continued in 2015; if he views increasing vehicle sales as a positive economic indicator; and if he will make a statement on the matter. [34990/14]
View answerI am informed by the Revenue Commissioners that the available information to August 2014 is in respect of VRT on all motor vehicles and estimated VAT as follows:
|
Year |
VRT |
VAT (Estimated) |
|
- |
€m |
€m |
|
2012 (8 Mths) |
361.8 |
175 |
|
2013 (8 Mths) |
363.5 |
176 |
|
2014 (8 Mths) |
461 |
224 |
The anticipated yield in respect of VRT for the full year 2014 is €543m, which is €106m more than the full year in 2013.
It should be noted that receipts shown are for the period January to August each year. The 2014 receipts are provisional at this time and may be subject to revision.
New motor car sales to end August 2014 were 86,144, an increase of 20,174 (or 30.6%) on the same period in 2013. Indeed, it is estimated that new car sales this year will be the highest since 2008. There has also been an increase in the sales of commercial vehicles of the type used by small and medium enterprises. To end July 2014, there have been 12,977 registrations of new commercial vehicles used for the carriage of goods (categorised as Category C for VRT purposes), a 3,462 (26.6%) increase on the same period in 2013.
I view the increase in motor vehicle sales this year as a sign of increasing confidence in the recovery of the economy.
83. Deputy Catherine Murphy asked the Minister for Finance if it is the practice of his Department to employ an archivist to examine records and archives once records are deemed appropriate for archiving to determine the quality of the records, the importance, the estimated care and attention needed to preserve the records and so on; if not, if he will consider this option in order to best capture the most valuable records before they potentially deteriorate in storage; and if he will make a statement on the matter. [35395/14]
View answerFile Management and Archiving is a shared service provided by my Department for both the Department of Finance and the Department of Public Expenditure and Reform in respect of file management and paper records.
Previously, my Department had a member of staff who had performed the duties of an archivist on a part time basis. As part of a broader review of our strategy for record and document management, we are now reviewing options as regards resourcing the archivist function.
In the meantime, my Department uses secured specialist file storage facilities to store and maintain records.
84. Deputy Catherine Murphy asked the Minister for Finance the total cost of his Department and those under the aegis for the storage of records and archives that are ultimately intended to be forwarded to the National Archives in time; if he will provide this cost for 2012 and 2013; and if he will make a statement on the matter. [35419/14]
View answerThe provision of the storage of records and archives is a shared service provided by my Department to both the Department of Finance and the Department of Public Expenditure and Reform. The storage of files is presently in two separate locations. The first is in our main premises in Government Buildings. There is no cost to the Department for the storage in this area.
The second is an off-site facility in Finglas that is currently on lease and is paid by the OPW. The costs incurred to my Department in relation to these premises are the heating and lighting and was circa €1,800 for 2012 and 2013.
The cost paid by the OPW is set out in the following table.
|
- |
2012 |
2013 |
|
Annual Rent |
72,500 |
72,500 |
|
Insurance Reimbursement |
600 |
754 |
|
Total Annual Service Charges |
8,223 |
8,628 |
|
Total Costs for this lease per annum |
€81,323 |
€81,882 |
Revenue Commissioners
I am advised by the Revenue Commissioners that they store a very large number of records for the purposes of tax & customs administration. Revenue currently holds a substantial number of disposal authorisations granted by the National Archives Office which covers a wide range of these records. It is Revenue's policy to review records on an on-going basis with the National Archives Office before disposal, and it is at that stage that files are identified for forwarding to that Office. There are no Revenue files at present which have been identified as being stored solely for the purpose of forwarding to the National Archives in time and accordingly no costs which can be separately identified.
85. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if any new performance management systems have been introduced in the public service since March 2011; if it is envisaged that a new performance management system will be introduced in the public service in 2014 or 2015; and if any new such system introduced would be selected through an open and public tendering competition. [34921/14]
View answerMy Department is responsible for the operation of performance management in the civil service. The operation of performance management in the wider public service is the responsibility of individual public sector bodies.
Since its introduction in the civil service in 2000, the Performance Management and Development System (PMDS) has been the subject of ongoing change and reform to improve its effectiveness as a tool for the management of performance. Recent changes included a more streamlined process; a sanction for managers who do not comply; the review of ratings by Calibration; a grade-based Competency Framework and a revised rating scale with improved descriptions of performance levels.
In addition to the above reforms, an electronic ePMDS system was also developed and rolled out in February 2014.
The need to continue to strengthen performance management in the civil service is a key focus of the Civil Service Task Force on Renewal and Vision.
Where a requirement for a new system is identified as part of the ongoing improvement process, the selection of the system will be in line with public procurement procedures.
86. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if he will provide additional funding for flood prevention repair works for County Kerry, as the current budget is almost exhausted with many outstanding works; and if he will make a statement on the matter. [34977/14]
View answerFollowing the period of coastal storm flood damage from 13 December, 2013 to 6th January, and the Government Decision of 11 February, 2014 to provide funding for damage repairs, the Department of the Environment, Community and Local Government (DoECLG) wrote to Kerry County Council indicating that, based on the estimate submitted by the Council to that Department, up to €1,226,920 is available to the Council to undertake the necessary repair works to damaged coastal protection and flood defence infrastructure.
The Council submitted an overall programme of works to the DoECLG detailing how it proposes to spend the total allocation of €1,226,920 and submitted the relevant elements of its programme to the Office of Public Works. This programme of works was approved and it is open to the Council to draw down this funding on the basis of its actual expenditure and contractual commitments on the approved repair projects.
There has been no decision by the Government to date to allocate any further funding for repair works arising subsequent to other storm events.
87. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if he will provide additional funding to assist embankment repair works at a location (details supplied) in County Kerry; and if he will make a statement on the matter. [34979/14]
View answer88. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform his plans to address flooding problems at a location (details supplied) in County Kerry; and if he will make a statement on the matter. [34980/14]
View answerI propose to take Questions Nos. 87 and 88 together.
The Government Decision of 11 February, 2014 specifically addressed the allocation of funding for the repair of existing public infrastructure damaged by storms in the period of 13th December to 6th January 2014. The Department of the Environment, Community and Local Government (DoECLG) wrote to Kerry County Council indicating that, based on the estimate submitted by the Council to that Department, up to €1,226,920 was being made available to the Council via the OPW to undertake the necessary repair works to damaged coastal protection and flood defence infrastructure.
The estimates submitted by Kerry County Council to the DoECLG included for strengthening works at Incherea, Glenbeigh and both repair and strengthening works at Cromane Lower. However, strengthening works fall outside of the scope of the Government Decision. Only the repair element of projects such as that at Cromane Lower is covered under the allocation. The programme of works the Council submitted to the OPW detailing how it proposes to spend the total allocation of €1,226,920 included an amount of €30,000 for repairs to a coastal embankment at Cromane Lower. This programme is approved and it is now open to the Council to draw down this funding.
The Council will need to address the strengthening works at Cromane Lower and Incherea separately and outside of the current process aimed at repairs and emergency works either by utilising its own resources for this purpose or through an application for funding to the OPW.
Applications by the Council to the OPW for funding for works that fall outside of the storm damage funding envelope will be considered having regard to the relevant eligibility criteria and the overall availability of funds for flood risk management.
