Written Answers Nos. 53-58
53. Deputy Michael McCarthy asked the Tánaiste and Minister for Social Protection if she will maintain the funding for farm assist in the forthcoming budget; if she will give due consideration to restoring income and child disregards to pre-budget 2013 levels under farm assist, with means tests reflective of current income positions; and if she will make a statement on the matter. [36127/14]
View answerThis year the Department will spend approximately €91.6 million on the farm assist scheme and it is expected that an average of 9,900 individuals will be in receipt of this payment each week. The farm assist scheme is based on jobseeker’s allowance and recipients retain all the advantages of the jobseeker’s allowance scheme such as retention of secondary benefits and access to activation programmes.
Recent changes to the scheme have brought it into closer alignment with the jobseeker’s allowance scheme’s treatment of self-employed persons.
Farm assist is a flexible payment and any farmer experiencing lower levels of income or cash-flow issues can ask his/her local social welfare / Intreo office to review the level of means applying to their claim.
The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation.
Any changes to the scheme would be a matter for Government to consider in a Budgetary context.
54. Deputy Seán Kenny asked the Minister for Finance the amount of additional revenue collected arising from the introduction of the pension levy. [36025/14]
View answerI am informed by the Revenue Commissioners that receipts to date from the 0.6% Stamp Duty levy on pension fund assets, introduced in the Finance (No. 2) Act 2011, amounted to €463 million in 2011, €483 million in 2012 and €535 million in 2013. The deadline date for payment of the levy this year is tomorrow, 25 September 2014.
55. Deputy Olivia Mitchell asked the Minister for Finance his position on UN Resolution No. 14 A/68/L.57/Rev.1 toward the establishment of a multilateral framework for sovereign debt restructuring processes; and if he will make a statement on the matter. [36092/14]
View answerAs I stated in response to recent similar questions on this issue, Ireland recognises the importance of an appropriate international agreement regarding sovereign debt restructuring due to its significant economic, social and financial implications.
In common with other EU Member States, Ireland was unable to support the recent UN resolution on a multilateral legal framework for sovereign debt restructuring, and this position was based on shared concerns regarding the substance of the resolution and the process followed in proposing it, particularly with respect to the pace at which this complex proposal was launched, the timing of the proposal at the end of a session of the General Assembly, and the pre-determined outcome which it prescribed.
Together with many other UN member states, Ireland is actively engaged in ongoing processes that address, and seek to identify solutions to, the issue of sovereign debt restructuring. Ireland considers that the work being undertaken in other fora such as the IMF and the upcoming third International Conference on Financing for Development in 2015 offer more appropriate and established means to progress dialogue on the matter.
Ireland has always had concern for developing countries experiencing debt problems. In this regard, Ireland continues to support processes aimed at resolving these problems through progressing dialogue in the most appropriate forum and using the most appropriate and effective mechanisms, to best support these countries.
I would like to draw the Deputy's attention to the detailed statement made on behalf of the European Union to the General Assembly of the United Nations in this matter, which is available at http://eu-un.europa.eu/articles/en/article_15455_en.htm
56. Deputy Robert Troy asked the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been drawn to the pressure that has been placed on gardaí to resolve a series of issues resulting from this practice; if his attention has been drawn to the financial hardship that has been placed on motorists who through no fault of their own have lost considerable money as a result of this practice; and if he will instruct Garda management to allocate extra resources to affected areas as a matter of urgency. [36094/14]
View answer57. Deputy Robert Troy asked the Minister for Finance if his attention has been drawn to the practice of petrol stretching; if his attention has been drawn to the pressure placed on Customs and Excise to resolve a series of issues resulting from this practice; if his attention has been drawn to the financial hardship placed on motorists who through no fault of their own have lost considerable money as a result of this practice; and if he will ask the Motor Insurance Bureau of Ireland to investigate the matter and ascertain role they may have in compensating affected motorists. [36095/14]
View answer62. Deputy Denis Naughten asked the Minister for Finance the steps he is taking to encourage motor insurance companies to assist with the financial cost of replacing engines on foot of petrol stretching; if he will put a fund in place to assist families struggling to meet the cost of repairing vehicles after such damage; and if he will make a statement on the matter. [36020/14]
View answerI propose to take Questions Nos. 56, 57 and 62 together.
I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to the Exchequer and to consumers by all forms of fuel fraud. Revenue has made great progress in tackling the problem of diesel laundering over the past three years and now media reports indicate the emergence of another form of fuel fraud, commonly referred to as petrol-stretching. This involves the illegal addition of kerosene or some other low tax commodity to petrol to defraud the Exchequer and the motorist.
Petrol stretching is an offence under S102 (1A) Finance Act 1999 and carries a penalty on summary conviction of €5,000 or, at the discretion of the court to imprisonment for a term not exceeding 12 months, or both. If convicted on indictment the fine is to a maximum of €126,970 and the prison term is to a maximum of 5 years or both.
I am advised by Revenue that they are investigating the recent reports concerning petrol stretching and have been in contact with the motor trade in this regard. I am also advised that they have taken samples from a number of filling stations that it has claimed may have been the source of adulterated fuel. These enquiries will seek to establish if there is evidence that kerosene has been added to the petrol being sold by the retailers in question and whether there is evidence to support a prosecution.
Revenue and the oil sector have cooperated very successfully to tackle diesel laundering and I am confident that with this cooperation, and with the supply chain information available to Revenue, the problem of petrol stretching can also be tackled successfully. In this regard it is essential that petrol distributors report on any reduction in the pattern of legitimate supplies of fuel to the retail trade which may indicate that specific retailers are shifting some of their sourcing to laundered or 'stretched' fuel.
Motorists themselves should take care about where they source their petrol from, and report any suspicions concerning the source of adulterated petrol that may have damaged their engines to Revenue. Revenue will investigate such reports and pursue prosecutions against offenders where possible. In that regard, Revenue has recently launched a dedicated section of its website specifically on the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices such as petrol stretching.
A key part of the mineral oil tax regulatory system to protect the Exchequer and consumers is the licensing system that ensures that dealers in mineral oil, including forecourt operators, keep proper records and only source and supply legitimate fuel. At Revenue's request, I have strengthened the legislative framework to refuse and /or revoke mineral oil licences. Revenue has been very pro-active in this sector over the last three years and from mid-2011 to the end of August 2014, 132 filling stations were closed, mainly for breaches of licensing conditions.
I will carefully consider any new proposals by Revenue to ensure that the licensing system is robust and acts to protect consumers, the legitimate trade and Exchequer receipts.
I would also like to advise the Deputies that the first point of contact for motorists whose vehicles have been affected should be the insurance companies they hold their policies with. Further to that, those affected should also contact the point of purchase and seek redress through them. If they remain unsatisfied they may have recourse to civil remedies and as such could seek legal advice.
58. Deputy Michael McCarthy asked the Minister for Finance his views to keep the VAT rate at 9% to ensure that Ireland continues to maintain a strong, vibrant and competitive tourism industry; if he will maintain this reduced VAT rate for the hospitality sector following on the very positive implications this reduction has had on the industry in creating and maintaining employment; and if he will make a statement on the matter. [36133/14]
View answer69. Deputy Michael McCarthy asked the Minister for Finance if consideration will be given to extending the 9% tourism VAT rate beyond 2014 so as to ensure that Ireland continues to maintain a strong, vibrant and competitive tourism industry; if he will maintain this reduced VAT rate for the hospitality sector following on the very positive implications this reduction has had on the industry in creating and maintaining employment; and if he will make a statement on the matter. [36134/14]
View answerI propose to take Questions Nos. 58 and 69 together.
The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. It is not the practice to comment on what measures may or may not be introduced in advance of the Budget.
