Michael McGrath
Question:45. Deputy Michael McGrath asked the Minister for Finance his views on correspondence in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [38600/14]
View answerState Savings Schemes
Questions (45)
Written answers
In response to the issue raised, it should be clarified that State Savings is not a 'body', but rather is the brand name used to describe the savings products issued by me, as Minister for Finance, to personal savers through the National Treasury Management Agency (NTMA).
The Minister for Finance has never been subject to the regulation of the Central Bank. However, the NTMA, in issuing and administering these products on my behalf, makes every effort to keep customers fully informed of the relevant terms and conditions, as explained to this particular customer.
The NTMA has advised me that it does not accept this customer's contention that it "disguised, diminished and obscured key information". The particular product that was the subject of this correspondence is a variable interest rate deposit account. This fact was stated on the relevant brochure, on the basis of which the deposit holder made his investment decision. The NTMA (and its agents) regularly accepts feedback from the holders of State Savings products regarding the services provided, and in this case the NTMA adopted the customer's suggestion to include additional information in the relevant brochures and statements of account but this was in the context of reacting to customer feedback on ways to improve rather than accepting that there was an error in the original brochures.
VAT Rate Application
Questions (46)
Tom Fleming
Question:46. Deputy Tom Fleming asked the Minister for Finance if he will retain the reduced VAT rate of 9% in forthcoming budget due to the success of this measure since its introduction; and if he will make a statement on the matter. [38601/14]
View answerWritten answers
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.
Debt Collectors Regulation
Questions (47)
Michael McGrath
Question:47. Deputy Michael McGrath asked the Minister for Finance if debt collection firms used by various service providers are regulated entities; if there are controls on the number and nature of contact they may have with customers; and if he will make a statement on the matter. [38605/14]
View answerWritten answers
The Central Bank confirmed to me that Debt Collection Firms, that is, firms that seek to collect debt due on behalf of creditors are not subject to authorisation and supervision in their own right by the Central Bank of Ireland. The Central Bank of Ireland does, however, authorise and supervise debt management firms which provide advice to and /or negotiate on behalf of consumers in debt in accordance with provisions set out in Part V of the Central Bank Act, 1997 as amended.
However, where a firm regulated by the Central Bank of Ireland outsources an activity such as debt collection to another firm, the Consumer Protection Code has a specific provision which requires that any such outsourced activity must comply with the requirements of the Code (provision 2.10 of the Code http://www.centralbank.ie/consumer/cpc/principles/Pages/home1.aspx ). The effect of this provision is that any company operating under an outsourcing arrangement from a regulated firm, must act in accordance with the rules of the Consumer Protection Code. There are similar provisions in the Code of Conduct on Mortgage Arrears (CCMA).
The Consumer Protection Code provides at paragraph 8.14
"Each calendar month, a regulated entity, and/or any third party acting on its behalf, must not initiate more than three unsolicited communications, by whatever means, to a personal consumer in respect of arrears..."
Paragraph 22 of the CCMA provides
"A lender must ensure that: a) the level of communications from the lender, or any third party acting on its behalf, is proportionate and not excessive, taking into account the circumstances of the borrowers, including that unnecessarily frequent communications are not made;
b)communications with borrowers are not aggressive, intimidating or harassing; ..."
Where a debt collection firm does not comply with such requirements, the Central Bank may impose penalties on the regulated firm concerned.
I should also point out that all debt collectors that operate across any or all sectors of the economy, including private individuals and debt collecting firms are subject to the provisions of the Non-Fatal Offences against the Person Act 1997. Under section 11 of this Act, it is an offence to demand payment of a debt in a way that is designed to cause alarm, distress or humiliation. A person found guilty of offences under this Act is subject to large fines and up to 14 years imprisonment.
Financial Services Regulation
Questions (48)
Terence Flanagan
Question:48. Deputy Terence Flanagan asked the Minister for Finance if he will have the Central Bank of Ireland introduce controls such as a mortgage cap of 80% on the value of a property to cool down the residential housing market; and if he will make a statement on the matter. [38661/14]
View answerWritten answers
As the Deputy will be aware, the Central Bank of Ireland has recently published a Consultation Paper on macro-prudential policy for residential mortgage lending which sets out proposals to introduce new macro-prudential measures to enhance the resilience of the banking sector and households to housing market developments. The proposed measures outline restrictions on the loan to value (LTV) and loan to income (LTI) ratios lenders can apply when lending for house purchase and will apply to all lending in Ireland by regulated firms. According to the Central Bank, the measures propose to introduce proportionate limits and specific exemptions which take into consideration that there are some cases which could fall outside strict limits. A copy of the Consultation Paper is available on the Central Bank website (at http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankpublishesnewmacro-prudentialmeasuresformortgagelending.aspx) and comments on the paper can be made electronically to realestate@centralbank.ie by 8 December 2014.
Pension Levy
Questions (49)
Róisín Shortall
Question:49. Deputy Róisín Shortall asked the Minister for Finance the current policy on ending the pension levy on private pensions in view of previous commitments that the levy would last only a limited number of years and in view of the impact the levy is having on pensioners with low incomes; and if he will make a statement on the matter. [38755/14]
View answerWritten answers
The position in this matter is that I announced in my Budget 2014 speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 would be abolished after this year. I did, however, introduce an additional levy on pension fund assets at a rate of 0.15% for 2014 and 2015. I did this to continue to help fund the Jobs Initiative and also to help make provision for potential State liabilities which may emerge from difficulties facing pension funds.
It is not my practice to comment on what measures may or may not be introduced in advance of the Budget.
Tax Reliefs Application
Questions (50)
Terence Flanagan
Question:50. Deputy Terence Flanagan asked the Minister for Finance his views on correspondence (details supplied) regarding graduate entry medicine loan relief. [38760/14]
View answerWritten answers
The graduate entry programme provides undergraduate medical education of four years duration and has been developed to produce medical graduates with the ability to successfully undertake an internship and thereafter to gain full registration with the Medical Council. The programme is supported by a combination of student fees, State funding and other income.
While in this case the fees could be considered high, in the majority of cases where third level tuition fees are payable they are at much lower levels. In addition, those participating in the programme must already have acquired an undergraduate degree, the fees for which would have been covered by the State in the vast majority of cases.
I would point out that tax relief at the standard rate of 20% is available in respect of qualifying fees paid by an individual for a third level education course, including a postgraduate course.
Qualifying fees mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the "student contribution". No other fees e.g. administration fees, examination fees, capitation fees, qualify for tax relief. Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees. A claim for relief may be made in respect of a number of students.
In making a claim for relief for the tax year 2014, the maximum amount of fees that can qualify for the relief is €7,000 per student, but an amount set out in the legislation must be disregarded from each claim (whether in respect of one or more students). Where a claim for relief includes fees paid on behalf of at least one full-time student, the disregard is €2,750. Where a claim for relief includes fees solely paid on behalf of a part-time student or part-time students, the amount disregarded is €1,375. Thus, for example, an individual undertaking a graduate entry medical course on a full-time basis, where tuition fees of €15,000 per student apply, would attract relief of €850 made up as follows:
|
- |
€ |
|
Tuition fees |
€15,000 |
|
Capped at |
€7,000 |
|
Less |
€2,750 |
|
€4,250 @ 20% = €850 |
It is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, as with all tax reliefs, the introduction of tax relief for loans taken out to pursue the graduate entry medical programme will be considered in the context of the forthcoming Budget and Finance Bill and any announcements will be made on Budget Day.
Revenue Commissioners Resources
Questions (51)
Patrick O'Donovan
Question:51. Deputy Patrick O'Donovan asked the Minister for Finance the reason the opening for the Revenue Commissioners office (details supplied) in County Wexford are limited to 9.30 a.m. to 1 p.m. from Monday to Friday; and if he will make a statement on the matter. [38770/14]
View answerWritten answers
I am advised by the Revenue Commissioners that in 2011 the opening hours of the five public counter locations in Revenue's East and South East region were reduced, following an overall reduction in demand for these services. This reduction in hours included the public office located at Anne St. Wexford. Taking account of the reduced demand for service at the public offices, and also to ensure that resources were available to deliver customer service efficiently across all contact channels, the decision was made to reduce the hours of service delivery to 9.30am to 1.00 pm daily. It is possible to arrange an appointment outside of the normal public counter opening hours.
There are a range of options available to taxpayers in the East and South East region who wish to contact Revenue. PAYE customers should use the Lo Call number 1890 44 44 25 between the hours of 10.00 am and 4.00 pm daily Monday to Friday inclusive, Telephone services for business taxpayers depend on the Revenue District in which they reside, a special Locall number 1890 200 255 is available for Local Property Tax enquiries and there are separate helplines for Employers and for contacts with the Collector General. There is also a facility to contact Revenue through the secure email system.
Revenue continues to update and improve delivery of service through electronic means. These include Revenue's on line service (ROS) and PAYE Anytime Service which are available on a 24 hour, 7 day basis.
Tax Code
Questions (52)
Willie Penrose
Question:52. Deputy Willie Penrose asked the Minister for Finance if in view of the obesity epidemic here, and especially the need to reduce consumption of sugar sweetened drinks, he will consider the introduction of a tax on sugar sweetened drinks in the budget; and if he will make a statement on the matter. [38817/14]
View answerWritten answers
It is not my practice to comment on what measures may or may not be introduced in advance of the Budget.
Public Sector Staff Data
Questions (53)
Joe Higgins
Question:53. Deputy Joe Higgins asked the Minister for Finance the number of temporary contracts in place for the public sector as a whole, including State agencies and other public bodies under the remit of his Department; and if he will make a statement on the matter. [38829/14]
View answerWritten answers
I wish to advise the Deputy that there are currently 5 staff on temporary contracts in my Department. In relation to bodies under the remit of my Department, I have been advised by the Credit Union Restructuring Board (ReBo) that there are 7 staff members on temporary contracts and in relation to the Revenue Commissioners, as of 30 September 2014 a total of 171 staff are employed on temporary contracts as temporary clerical officers, primarily in relation to the Local Property Tax and Household Charge Arrears.
The following offices have advised that there are no temporary contracts in place: Irish Fiscal Advisory Council, Financial Services Ombudsman Bureau, NTMA and the Central Bank.
Public Sector Staff Data
Questions (54)
Joe Higgins
Question:54. Deputy Joe Higgins asked the Minister for Finance the number of contracts of indefinite duration that have been sought and the number that have been granted in the years 2007, 2008, 2009, 2010, 2011, 2012, 2013 and to date in 2014 in the public sector under the remit of his Department; and if he will make a statement on the matter. [38840/14]
View answerWritten answers
I wish to advise the Deputy that there have been no contracts of indefinite duration sought or granted in the years 2007 to date in 2014. However I have been advised by the Central Bank that in their recruitment process, a role is either Fixed-Term Contract or Contract of Indefinite Duration at the time of recruitment and as such a person is recruited on this basis. If a person is recruited in a temporary role they can apply for other permanent roles that may arise or if business needs dictate that their role is more permanent in nature, they can be converted to Contract of Indefinite Duration subject to the appropriate sign off. In relation to the Revenue Commissioners, they have advised me that they did not seek any contracts of indefinite duration in respect of the period 1 January 2007 to date. By way of clarification they advised that three temporary clerical officers unsuccessfully claimed contracts of indefinite duration during this period. The following offices have advised that no contracts of indefinite duration were sought or granted in the years 2007 to date in 2014: Irish Fiscal Advisory Council, Financial Services Ombudsman Bureau, NTMA and Rebo.
Public Sector Staff Recruitment
Questions (55)
Joe Higgins
Question:55. Deputy Joe Higgins asked the Minister for Public Expenditure and Reform his views on an end to the moratorium on recruitment and promotion; and if he will make a statement on the matter. [38322/14]
View answerWritten answers
The restriction on recruitment and promotion in the Public Service has achieved two important objectives: firstly, it has helped to reduce the Exchequer pay bill, which had reached an unsustainable level; secondly, it has provided a real impetus for Public Service Reform and the roll out of new and more efficient ways of delivering public services, underpinned by agreed workplace reforms, unprecedented levels of staff redeployment and additional hours. In this regard, it has been a hugely successful policy instrument.
There are pressures across the system. This is why the Government responded last year and provided additional resources in Health and Education, in particular. In addition, throughout the Moratorium there has been targeted recruitment across many areas of the Public Service where priority staff were required.
As for the future, resource needs over the medium term have been examined as part of the Comprehensive Review of Expenditure, the outcome of which will help inform Budget decisions and measures to be announced next week.
Flood Relief Schemes Status
Questions (56)
Finian McGrath
Question:56. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform if he will report on the progress of Clanmoyle flood alleviation scheme phase two; if funding is in place to complete Clanmoyle flood alleviation scheme phase (detail supplied); and if he will make a statement on the matter. [38645/14]
View answerWritten answers
A study completed in 2010 by consultants commissioned by Dublin City Council recommended that flooding caused by the River Wad should be addressed in three phases, with a total estimated cost of approximately €20m. The Council agreed with the Office of Public Works (OPW) that the initial focus would be on Phase 1, which would address flooding in the vicinity of Clanmoyle Estate. These works are being funded by the OPW and are being undertaken by OPW direct labour. The works should be completed in the coming weeks, with the exception of some mechanical and electrical works relating to a pump station in the Clanmoyle area, which will run into early 2015.
Dublin City Council has indicated there are further elements of Phase 1 which will be undertaken by the Council shortly, including works in the Howth Road, Collins Avenue East, and Clontarf Road areas, which will take approximately 12 months to complete. The progression of these works is a matter for the Council.
While informal discussions have taken place regarding funding for the remaining phases recommended by the consultants' study, Dublin City Council has not as yet made a formal application for funding in respect of these to the OPW. When an application is made, it will be considered having regard to OPW's overall availability of funding for flood risk management.