Written Answers Nos. 192-210
192. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the threat to 92,000 jobs being supported by the drinks industry in every county throughout Ireland following the increase in excise on alcohol in the past two budgets; and if he will make a statement on the matter. [38191/14]
View answer193. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the large gap that now exists between the on and offline trade caused by the increase of excise duty on alcohol in budget 2014, which is now highlighting the inability of pubs and independent off-licences to offset these excise increases by increasing margins on other products as can be done by the large multiple sector; and if he will make a statement on the matter. [38192/14]
View answer194. Deputy Dara Calleary asked the Minister for Finance his views that excise increases in successive budgets have cost jobs, have made the tourist offering less competitive here and have increased costs for struggling consumers here; and if he will make a statement on the matter. [38193/14]
View answer195. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the cash-flow pressure being put on small businesses within the drinks industry following the increase of excise on wine by 62% in less than a year between December 2012 and October 2013 (details supplied); and if he will make a statement on the matter. [38194/14]
View answerI propose to take Questions Nos. 192 to 195, inclusive, together.
The increases to excise duty on alcohol in Budgets 2013 and 2014 must be seen firstly in the context of the Government's need to raise revenue to provide services. Secondly, these increases should not be viewed in isolation but together with the history of excise rates on alcohol in Ireland. To this end I would remind the Deputy that excise duties on alcohol were reduced significantly in Budget 2010 and also that the rate of duty on spirits and beer remained largely unchanged between 2002 and 2009. I would also point out that a relief of 50% of excise duty on beer is provided for smaller breweries producing under 20,000 hectolitres of beer per annum. This is an important measure that supports employment in small breweries throughout the country.
I am aware of the important role played by the drinks industry in providing employment along all points of the production chain, including distilleries, breweries, and public houses. In this regard, the Government has introduced a number of measures to maintain and create jobs in the broader tourism sector, of which the pub trade is an important component. In July 2011, the 9% reduced VAT rate for tourism related services was introduced as part of the Jobs Initiative. The reduced VAT rate, due to expire on 31 December 2013, was retained as part of Budget 2014. This decision was taken in recognition of the importance of the tourism sector to the overall economy and also in recognition of the success of the initiative in helping to create many new jobs, as well as protecting existing jobs. The 9% reduced rate applies to the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering, which of course benefits the pub trade. In addition, Budget 2014 provided for the abolition of the Air Travel Tax. This measure was designed to increase the number of tourists coming to Ireland, thus benefitting the broader hospitality sector, including the pub trade.
These tax policy initiatives, combined with other measures such as investment in tourism infrastructure like the 'Wild Atlantic Way', have begun to bear fruit. Figures from the Central Statistics Office indicate that in the period from June to August 2014, the total number of overseas trips to Ireland increased by 9.7% to 2,484,000, an overall increase of 219,200 compared to the same period twelve months earlier.
The nationally representative price (as measured by the Central Statistics Office) of a can of lager purchased in the off trade increased from €1.77 in 2003 to €1.98 in 2014. In the same period the excise imposed on such a product increased from €0.43 to €0.48. The price of a pint of lager purchased in the on trade rose from €3.67 in 2003 to €4.67 in 2014, while the excise imposed on such a product increased from €0.49 to €0.55 in the same period. Accordingly, the excise component as a percentage of the price of a pint of lager purchased in the on trade is lower now than it was in 2003, while the excise component of a can of lager sold in the off-trade is broadly the same at it was in 2003. This suggests that excise is not the primary driver of the price differential.
Finally, I would point out that the percentage increase in excise duty in wine cited by the Deputy is based on using 2012 as the base year. Excise duty on a bottle of wine in 2009 was €2.46, and stands at €3.19 today. It should be noted that the volume of wine cleared for consumption to end July is 9.2% higher than end July 2013.
196. Deputy Willie Penrose asked the Minister for Finance if he will consider the introduction of a tax credit scheme to cover the significant costs of child care in the forthcoming budget; and if he will make a statement on the matter. [38205/14]
View answerTax relief is not available to parents in respect of creche fees or childcare costs. However, I can assure the Deputy that the Government acknowledges the continuing cost pressures on parents, particularly those with young children. In recognition of these cost pressures, a number of support measures are in place to ease the burden on working parents. These include the Community Childcare Subvention (CCS) programme, which funds community childcare services to enable them to charge reduced childcare fees to qualifying parents, the Childcare Education and Training Support (CETS) programme which provides free childcare places to qualifying FÁS and VEC trainees and the Early Childhood Care and Education (ECCE) programme which provides for a free pre-school year for children in the year before commencing primary school. Generous entitlements to paid and unpaid maternity leave as well as child benefit payments are also provided.
The Department of Social Protection provides financial support to families on low pay by way of the Family Income Supplement (FIS) and to one-parent families through the one-parent family payment.
In addition, a Single Person Child Carer tax credit of €1,650 is provided as well as an additional standard rate band of €4,000. This credit and band is payable to any single person with a child under 18 years of age or over 18 years of age if in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year. To claim the Single Person Child Carer Credit a claimant must not be married, in a civil partnership or cohabiting.
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. It is a more sustainable charge than those it replaced and is applied at a low rate on a wide base with very few exemptions.
In Budget 2012 I announced that those earning less than €10,036 would no longer be subject to the Universal Social Charge. This in itself has removed almost 330,000 individuals from the charge and is of particular benefit to the low paid.
In relation to exempting childcare costs from tax when the service is provided by an employer, a similar relief existed where a benefit-in-kind exemption was provided for childcare costs where the facilities were provided by the employer. This was abolished in Finance Act 2011. The Commission on Taxation recommended the abolition of this exemption, citing equity issues in relation to those parents whose employment does not provide such facilities.
I have no plans to introduce a tax relief for parents to assist with childcare costs. To provide such a tax relief could be seen to unfairly discriminate against those individuals who stay at home and look after their children. This could result in married one-earner couples effectively subsidising a two-earner family.
In addition, tax relief is only of benefit to those in the tax net and it is estimated that in 2014, 39% of income earners will be exempt from income tax. it could also be argued that any tax relief would most likely be absorbed by childcare providers in the form of higher prices.
As the Deputy will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. As the Deputy will also appreciate, I must be mindful of the public finances and the many demands on the Exchequer given the current budgetary constraints. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
197. Deputy Gerry Adams asked the Minister for Finance if he is satisfied that the Office of the Revenue Commissioners is adequately administering and enforcing the use of RCT1s and that these certificates are not being widely used by companies and individuals to avoid tax and drive down workers’ wages and conditions. [38206/14]
View answer198. Deputy Gerry Adams asked the Minister for Finance his plans to review the legislation underpinning RCT1s with a view to preventing these tax certificates from being used to avoid tax by employers. [38207/14]
View answerI propose to take Questions Nos. 197 and 198 together.
I am advised by the Revenue Commissioners that the legislation underpinning the Form RCT1 has recently been fundamentally reformed. Form RCT1 and Form C2 were part of the paper based relevant contracts tax (RCT) system that was abolished with effect from 31 December 2011. If the Deputy is aware of the continued use of such Forms, it would be appreciated if he would inform the Revenue Commissioners. I am further advised that the electronic Relevant Contracts Tax (eRCT) system which was introduced with effect from 1 January 2012 is working efficiently and that it has removed substantially the vulnerabilities for fraud, mainly extraction fraud based on bogus contractors and bogus documentation, that attached to the previous paper based relevant contracts tax system.
On a wider note, I am informed by the Revenue Commissioners that it appears that the Deputy's Questions may, more appropriately, have been meant to refer that which is known as 'bogus self-employment". That is the phrase used to describe a scenario wherein an individual who is an employee is erroneously described as being 'self-employed' so as to purport to relieve the person who engaged that individual from certain statutory obligations relating to matters such as tax, PRSI, employment rights, etc. In that regard, whilst both the
- Pay As You earn (PAYE) system that applies to wages; and
- the electronic relevant contracts tax (eRCT) system that applies to payments made under contracts in the construction, meat processing and forestry sectors,
outline the making of statutory deductions at source from payments made, neither such system determines whether an individual, as regards an engagement, is either employed or self-employed. The 'Code of Practice for Employment or Self-Employment Status of Individuals' was created to assist both parties to an engagement including an engagement in the construction sector - in determining if a contract of engagement is, by its nature, either a 'contract of service' (that is, an employer and employee arrangement) or a 'contract for service' (that is, not an employer and employee arrangement). The Code of Practice for Employment or Self-Employment Status of Individuals' is not a Revenue Code but rather was compiled with the assistance of the Irish Congress of Trade Unions / Department of Jobs, Enterprise and Innovation / National Employment Rights Authority / Department of Social Protection / Department of Finance / Small Firms Association / Irish Business and Employers Confederation / Construction Industry Federation / Revenue Commissioners. I am further informed by the Revenue Commissioners that they are committed to tackling all forms of shadow economy activity including that which is described as 'bogus self-employment status'. Their staff carry-out visits to a wide range of businesses, including temporary places of business such as building sites, as part of their on-going compliance operations. In some instances, such visits are undertaken jointly with other State agencies such as the Department of Social Protection and the National Employment Rights Authority.
199. Deputy Michael McGrath asked the Minister for Finance if he will review the situation whereby a parent who is the primary claimant and who has no use for the single person child carer credit has to give their explicit consent for the credit to be transferred to the secondary claimant who meets all the other qualifying criteria; and if he will make a statement on the matter. [38242/14]
View answerAs the Deputy is aware, the One-Parent Family Tax Credit (OPFTC) has been replaced with the Single Person Child Carer Credit from 1 January 2014. However, the reformed credit is more targeted in that it is, in the first instance, only available to the primary carer of the child.
Given the difficult fiscal environment, it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them.
The Commission on Taxation acknowledged that the previous One Parent Family Tax Credit played a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the primary carer only. The restructuring of the credit achieves such an outcome.
The person who cares for the child for most of the year is entitled to the credit in the first instance. Agreement as to who will be the primary carer of a child is a matter for the parents or guardians. However, only the primary carer is entitled to the credit.
In the circumstances where the primary carer cannot utilise the credit for example, because of insufficient taxable income - the primary carer may relinquish the credit and a secondary claimant may claim it. The requirement for a primary claimant to relinquish the credit before a claim from a secondary claimant can be considered is necessary, as in the first instance, only one credit is available in respect of a qualifying child or children. Secondly, the credit is targeted at the primary claimant, and finally, only the primary claimant can gauge whether their income would be of a sufficient amount over the course of a tax year to be able to utilise the credit. An individual may wish to retain the credit in the expectation that they may find employment during the year, for example. In addition, taxpayers are entitled to review their tax affairs over a four year look back period, and depending on circumstances, an individual might wish to retain the credit in order to offset any tax liability that might arise as a result of a review of their income tax liabilities in any of the years concerned.
For information, it should be noted that where a primary carer is married, in a civil partnership or cohabiting they would not be entitled to the new credit (or indeed the former one), on the basis that the relevant child is not, in the main, being cared for by a single person. In such circumstances the primary carer cannot relinquish the credit to a secondary carer. In addition, a secondary carer who is married, in a civil partnership or cohabiting, would not be entitled to the new credit (or indeed the former one) regardless of the marital status of the primary carer.
200. Deputy Maureen O'Sullivan asked the Minister for Finance further to Parliamentary Question No. 180 of 17 September 2014, if he will provide details on the substantive reasons for the decision; and the policy, strategy and ideological considerations that informed this decision. [38259/14]
View answerAs the Deputy is aware, Ireland voted against the recent UN Resolution towards a multilateral convention to establish a legal regulatory framework for sovereign debt restructuring processes. As I have indicated in previous replies on this issue, while Ireland recognises the significant economic, social and financial implications associated with sovereign debt restructuring, it was unable to support the resolution due to a number of concerns which it shared with other EU member states, both those who abstained and those who voted against. Foremost in that regard was the view that the resolution involved a complex proposal which had been presented with great haste, with a pre-determined outcome and without sufficient time for proper consideration by member states. These concerns informed Ireland's position and are set out in detail in the statement made on behalf of the European Union in the matter and which is available at http://eu-un.europa.eu/articles/en/article_15455_en.htm
Like many other UN member states, Ireland is actively engaged in ongoing discussions that address, and seek to identify solutions to, the issue of sovereign debt restructuring including the external debt situation of developing countries. In the case of the UN, Ireland's representation is a matter in the first instance for my colleague, the Minister for Foreign Affairs and Trade. While the views of my Department are sought on relevant proposals, the Deputy will appreciate that the day-to-day negotiation and co-ordination of Ireland's policy positions at the UN is outside the remit of my Department.
201. Deputy Seán Kyne asked the Minister for Finance if the policy of charging vehicle registration tax on vehicles procured by mountain rescue teams is a national or EU one; and if he will make a statement on the matter. [38271/14]
View answerI am advised by the Revenue Commissioners that vehicle registration tax (VRT) is a domestic tax provided for in legislation under Section 132(1) of the Finance Act, 1992 (as amended) and that vehicles are classified for VRT purposes on the basis of type rather than use.
Section 130 of the Finance Act 1992 (as amended by Section 102 of the Finance Act 2010) provided for the introduction, from 1 January 2011, of a revised classification system for VRT purposes. This system reflects the categories used for classification of vehicles under various EC Directives. Passenger Vehicles (EU Category M) and Commercial Vehicles (EU Category N) are classified based on the specifications of these vehicle types, in particular the number of seats and their goods carrying capacity.
Further details of the EU Classification of vehicles and corresponding VRT categories can be accessed on the Revenue website at the following link:
http://www.revenue.ie/en/tax/vrt/faqs-vrt.html#question43.
203. Deputy Robert Dowds asked the Minister for Finance if he will provide information on the number of State agencies or organisations under the remit of his Department which are paid up members of IBEC; the names of each agency or organisation; the amount which each agency or organisation paid to IBEC in the years 2011, 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [38727/14]
View answerIn response to the Deputy's question I can confirm that two bodies under my remit are paid up members of IBEC. These are the Financial Service Ombudsman Bureau and the National Treasury Management Agency (NTMA). The details of the amounts paid for subscription can be found in the following table.
|
- |
2014 |
2013 |
2012 |
2011 |
|
|
€ |
€ |
€ |
€ |
|
NTMA |
10,883.46 |
9,205.44 |
9,082.36 |
9,098.72 |
|
Financial Services Ombudsman Bureau |
1,300 |
1,300 |
1,300 |
1,300 |
204. Deputy Pat Breen asked the Minister for Public Expenditure and Reform when a decision will issue in relation to funding for a flood prevention scheme (details supplied) in County Clare; and if he will make a statement on the matter. [37813/14]
View answerThe flood alleviation project for the St. Flannan's College and Ballybeg areas in Ennis (known as the Ennis South Flood relief Scheme) is being progressed by Clare County Council with funding from the Office of Public Works (OPW).
The OPW and the Council are currently in discussion regarding aspects of the cost benefit analysis report prepared by the Council's consultants for the identified scheme option. It is expected that these matters will be finalised shortly. Provided the final cost benefit analysis confirms that the proposal is economically viable, approval will be granted for the scheme to continue.
The OPW has made provision for the scheme in its multi-annual budget profiles.
205. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform the position regarding the planned works to be carried out at a Garda station (details supplied) in County Limerick following the amalgamation of the Newcastle West and Askeaton districts; when is it likely that these works will be carried out; and if he will make a statement on the matter. [38757/14]
View answer206. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform if he will provide details of requests from the Department of Justice and Equality and-or An Garda Síochána for improvements to be made to the accommodation available at Newcastle West Garda station, County Limerick; and if he will make a statement on the matter. [37898/14]
View answerI propose to take Questions Nos. 205 and 206 together.
The Commissioners of Public Works undertake refurbishments and routine maintenance to Garda Stations on foot of requests and priorities assigned by An Garda Síochána. A request has been received, to convert an existing Garage at Newcastlewest Garda Station into a new locker room, which would then allow the existing locker room to be converted for use as a Conference room. Other interior improvements to the Station are also requested.
Preliminary design proposals have been signed off by An Garda Síochána earlier this year. Advancing this project will depend on the prioritisation afforded it by the Garda Authorities.
207. Deputy Pat Deering asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 223 of 30 September 2014, in which it was stated that, in general, the Act maintains the long-standing position that all commercial facilities established for the purpose of making a private profit are liable for rates, the reason some sporting facilities including GAA county grounds are liable for commercial rates. [37949/14]
View answerThe Valuation Act, 2001 provides for the exemption from rates of land that is developed for sport such as playing pitches, land on golf courses, tennis courts, etc. It also provides for the exemption from rates of "Community Halls". To be classified as a Community Hall, the premises needs to be used for purposes which are not for profit or gain and involve participation by inhabitants of the locality generally and are used for purposes which are of a recreational or otherwise of a social nature.
Many sports clubs/organisations achieve exemption from rates of their property under this provision. However, the Valuation Act, 2001 specifically excludes from this provision, the premises of a club registered under the Registration of Clubs (Ireland) Act, 1904. Therefore, the premises of such a registered club are rateable, which essentially means that clubs that sell alcohol are rateable. This provision currently has the effect of making the entire premises occupied by the club rateable and not just that part of the premises normally used for the sale of alcohol. This is because the sale of alcohol is a commercial activity and a registered sports club is competing with other commercial licensed premises, all of which are rateable. This situation can place an undue burden on many local clubs as most of their facility is purely for sporting purposes, and is provided on a not-for-profit basis with local volunteer effort for the benefit of the local community.
I am, therefore, proposing an amendment to the Valuation (Amendment)(No. 2) Bill 2012, which is currently at Committee stage in the Seanad, that would mean Community Sports Clubs will only be liable for rates on buildings that are used for the generation of income. Buildings that are used for the sale of alcohol or food, retail outlets etc. will be rated but buildings that are used for community sport will be exempt. If a sports club's only commercial facility is the bar then it is only the bar and ancillary facilities that will be rated.
In proposing this amendment, I am conscious of situations where local sports clubs can be in competition with commercial operators. For that reason it is not just the bar area of a sports club that will be valued for rates but any building that is used in the generation of income. Minister of State, Simon Harris will be taking the Valuation (Amendment) (No. 2) Bill 2012 through the Houses of the Oireachtas and we both welcome this common-sense amendment to address a long standing concern of many local sports clubs.
208. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the scheduled reductions in his Department's, or in agencies under his aegis, spending in 2015; and the areas of spending these reductions are scheduled to take place to show the amount of reductions by theme. [38039/14]
View answerThe allocations involved will be agreed in the context of the Budget 2015 Estimates of Expenditure. These will be made public on Budget Day, Tuesday 14 October.
209. Deputy Robert Dowds asked the Minister for Public Expenditure and Reform if he will provide information on the number of State agencies or organisations under the remit of his Department which are paid up members of IBEC; the names of each agency or organisation; the amount which each agency or organisation paid to IBEC in the years 2011, 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [38111/14]
View answerIn response to the Deputy's question the only State Agency or organisation under the remit of my Department which is a member of IBEC is the Institute of Public Administration and the amounts paid by them to IBEC in the years 2011,2012, 2013 and to date in 2014 is as follows:
|
Year |
Annual Subscription Fees |
HRM Guide (Updates) |
|
2011 |
€3,934.60 |
€181.50 |
|
2012 |
€3,858.20 |
€184.50 |
|
2013 |
€3,017.80 |
€661.60 |
|
2014 |
€3,017.80 |
€184.50 |
210. Deputy Willie Penrose asked the Minister for Public Expenditure and Reform the steps he will take to reply to and take cognisance of the concerns of employees of Waterways Ireland in respect of proposals concerning increased employee contributions (details supplied); and if he will make a statement on the matter. [38203/14]
View answerFive of the six North/South Implementation Bodies, including Waterways Ireland, along with Tourism Ireland, operate the North/South Pension Scheme (N/SPS). The Scheme is unique in covering public service staff employed on both sides of the border; staff of the affiliated employers in this jurisdiction ('southern members') are automatically members of the Scheme. The Chief Executive Officers of the relevant N/SPS bodies and Tourism Ireland meet as the N/SPS CEO Pension Committee, which exercises trustee-like functions in relation to the Scheme.
As Minister for Public Expenditure and Reform, I am jointly responsible, along with the Northern Ireland Minister for Finance and Personnel for the rules of the N/SPS, and, in particular, for approving amendments which may be proposed to those rules.
Review and reform of existing pension arrangements, including public service pension arrangements, has been an ongoing issue in both jurisdictions over recent times. In exercise of my responsibilities in relation to the N/SPS, I and my officials have engaged in correspondence and discussion about reforms to the Scheme rules with my counterpart Northern Ireland Minister and his officials.
I consider that the current reform package, the 'Hutton Reforms', which includes proposed increases in pension contributions, is appropriate and proportionate, particularly having regard to the desirability of maintaining a common pension scheme for N/SPS employees in both jurisdictions.
You may be aware that officials from my Department have met with Union interests under the auspices of the Labour Relations Commission (LRC) in relation to the issue of increased contribution rates. Following these discussions it was agreed that all members of the N/SPS would be given an option to either stay with that Scheme (with the proposed higher contribution) or, if they preferred, to revert to what is called 'Reserved Rights' status which is effectively the standard southern public service terms. In certain instances the benefits payable under the N/SPS would actually be more beneficial for individuals, but it will be a matter for each employee to make a decision based on the information they will be given on their own pension position. The options process will start shortly. Contribution increases have not been implemented, in respect of Southern Members of the N/SPS, pending completion of this process.
Finally in relation to the commitment in the Haddington Road Agreement (HRA), cited by the Deputy, I do not believe that this provision should impede the changes envisaged for the N/SPS. That commitment is instead a high-level affirmation by Government that, during the lifetime of the HRA, it plans no further general public service pay cuts following the reductions carried through in 2013 via the HRA and the Financial Emergency Measures in the Public Interest Act 2013. I do not believe that this commitment should be stretched to become a veto on objectively warranted reforms to pension schemes rules, including the N/SPS rules.
