Wednesday, 15 Oct 2014

Written Answers Nos. 1-26

Disability Allowance Appeals

Questions (1)

Sean Conlan

Question:

1. Deputy Seán Conlan asked the Tánaiste and Minister for Social Protection the reason a person (details supplied) in County Cavan has been waiting more than two months for a disability allowance. [39325/14]

Written answers

Tánaiste and Minister for Social Protection

I am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all the evidence, disallowed the appeal of the person concerned by way of summary decision on the 17th February 2014.

Under Social Welfare legislation, the decision of the Appeals Officer is final and conclusive and may only be reviewed by the Appeals Officer in the light of new evidence or facts. I am advised that, as the person concerned subsequently submitted additional evidence, the Appeals Officer agreed to review the person’s appeal. Regrettably the Appeals Officer did not consider that the additional evidence warranted a revision of his earlier decision. The person concerned has been notified of the outcome of the Appeals Officer’s review.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

Question No. 2 withdrawn.

Domiciliary Care Allowance Applications

Questions (3)

Pat Breen

Question:

3. Deputy Pat Breen asked the Tánaiste and Minister for Social Protection when a decision will issue on a domiciliary care allowance application in respect of a person (details supplied) in County Clare; and if she will make a statement on the matter. [39375/14]

Written answers

Tánaiste and Minister for Social Protection

An application for domiciliary care allowance (DCA) was received from the person concerned on the 29th July 2014. This application has been forwarded to one of the Department’s Medical Assessors for their medical opinion. Following receipt of this opinion, a decision will be made by a Deciding Officer and notified to the person concerned. It can currently take up to 12 weeks to process an application for DCA.

Question No. 4 withdrawn.

Carer's Allowance Applications

Questions (5)

Bernard Durkan

Question:

5. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the progress to date in the determination of an application for carer's allowance in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [39384/14]

Written answers

Tánaiste and Minister for Social Protection

I confirm that the department has no record to date of an application for carer’s allowance from the person in question. If the person in question wishes to make an application for carer’s allowance, she may do so by completing an application form and submitting it to the Department.

Advisory Group on Tax and Social Welfare

Questions (6)

Olivia Mitchell

Question:

6. Deputy Olivia Mitchell asked the Tánaiste and Minister for Social Protection if her Department has concluded its reflection on the recommendations of the Advisory Group on Tax and Social Welfare and the findings of the 2010 actuarial review regarding extending social insurance for the self-employed now that our budgetary and fiscal situation has improved; and if she will make a statement on the matter. [39385/14]

Written answers

Tánaiste and Minister for Social Protection

In September 2013, I published the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed. The Group was asked to examine and report on issues involved in extending social insurance coverage for self-employed people in order to establish whether or not such cover is technically feasible and financially sustainable, with the requirement that any proposals for change must be cost neutral.

The Group found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries. To this end, the Group recommended that class S benefits should be extended to provide cover for people who are permanently incapable of work, because of a long-term illness or incapacity, through the invalidity pension and the partial capacity benefit schemes. The Group further recommended that the extension of social insurance in this regard should be on a compulsory basis and that the rate of contribution for class S should be increased by at least 1.5 percentage points.

In this regard, the 2010 Actuarial Review of the Social Insurance Fund determined that the self-employed are obtaining better value for the level of their current social insurance contributions than employees, when the comparison includes both employer and employee contributions in respect of the employed person. The Actuarial Review found that the effective annual rate of contributions needed to provide the core full-rate State pension (contributory), currently available to self-employed contributors, is approximately 15%.

My colleagues in Government and I continue to reflect on the findings of the Advisory Group on this issue, in conjunction with the findings of the most recent Actuarial Review of the Social Insurance Fund, and will further consider the recommendations contained in the report taking into account future developments in terms of the budgetary and fiscal situation. It is relevant that the Actuarial Review of the Social Insurance Fund also highlighted the growing deficit in the Fund and the prospect that it will, in the absence of measures to address the deficit, accelerate further in the future, driven primarily by pension costs. It is estimated that in excess of €900m additional provision will be required over the next 5 years to fund increases in the numbers of recipients of the State pension (contributory) scheme.

Departmental Staff Remuneration

Questions (7)

Billy Timmins

Question:

7. Deputy Billy Timmins asked the Tánaiste and Minister for Social Protection if performance-related pay has been paid to any of her staff or staff in her Department for the years 2011, 2012, 2013 and to date in 2014; if so, the number of staff; and if she will make a statement on the matter. [39401/14]

Written answers

Tánaiste and Minister for Social Protection

No performance related pay was paid, to any of my staff, or, to any staff in my Department for the years 2011, 2012, 2013 and to date in 2014.

Community Employment Schemes Eligibility

Questions (8)

Áine Collins

Question:

8. Deputy Áine Collins asked the Tánaiste and Minister for Social Protection the reason a community employment supervisor who is funded by her Department is forced to retire when he or she reaches the age of 66; the reason this is the case when, under Irish law, there is no mandatory retirement age. [39404/14]

Written answers

Tánaiste and Minister for Social Protection

Community Employment (CE) is a non-statutory scheme put in place to support persons who are long-term unemployed and other vulnerable groups to gain the confidence and skills to re-enter the labour market. Schemes are sponsored by local community and voluntary groups who provide valuable support services to local communities. These sponsoring organisations employ supervisory staff to administer the scheme.

Funding under CE is provided under the following four headings:

- Participant Allowances;

- Material Costs (running costs/overheads/insurance, etc.);

- Training Costs; and

- Supervision Costs

Funding is provided by the Department to the Sponsoring Organisations for the employment of staff between the ages of 25 to 65 years (up to the Friday prior to becoming 66 years). This is a long established procedure which sponsoring organisations have signed up to as part of their contractual arrangement with the Department and it is applied equally across all schemes participating in CE.

I have no plans to change these arrangements.

Question No. 9 withdrawn.

Pension Provisions

Questions (10)

Aengus Ó Snodaigh

Question:

10. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the reason the 2008 Labour Court recommendation on a pension scheme for community employment supervisors was not implemented. [39452/14]

Written answers

Tánaiste and Minister for Social Protection

In July 2008 the Labour Court recommended that an agreed pension scheme should be introduced for Community Employment (CE) scheme supervisors and assistant supervisors and that such a scheme should be adequately funded by FÁS, the agency responsible for CE at that time (LCR19293). Notwithstanding the position of this Department (which now has responsibility for CE) in rejecting that liability for these costs be met from public funds, this matter has been the subject of discussions with the Department of Public Expenditure and Reform and the unions representing CE supervisors.

Given the level of funding that would be required from this Department, the implementation of the claim is not considered sustainable in light of the current and on-going fiscal environment and the requirement to contain and reduce public expenditure. The costs of the introduction of any scheme are likely to be of the order of €3m per annum.

It should also be noted that this Department is not the employer of CE supervisors and such employees are not public servants. The responsibilities of the sponsoring organisations as employers and the individuals as employees must be recognised when considering pension provision arrangements.

Employers (including CE Sponsoring Organisations) are legally obliged to offer access to at least one Standard Personal Retirement Savings Account (PRSA) under the Pension (Amendment) Act 2002. All CE sponsoring organisations were informed by the Department of their responsibilities under this Act at that time.

CE Supervisors may also qualify for the State Pension at 66 years of age. If they have accrued sufficient PRSI contributions (520 contributions @ full rate, equivalent to 10 years contributions) they will qualify for the State Pension (Contributory), which is not means-tested. In the event that there are insufficient contributions, the person will qualify for the State Pension (Non-Contributory), provided they satisfy the means test.

Child Benefit Data

Questions (11, 12, 13)

Aengus Ó Snodaigh

Question:

11. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the number of children in the State in respect of whom child benefit is not being paid. [39457/14]

Aengus Ó Snodaigh

Question:

12. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the number of children in respect of whom an application for child benefit has been made but who have failed the habitual residence condition test. [39458/14]

Aengus Ó Snodaigh

Question:

13. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the number of children in the State whose child benefit ceased because a parent emigrated to work in a country covered by EU regulations governing child benefit. [39459/14]

Written answers

Tánaiste and Minister for Social Protection

I propose to take Questions Nos. 11 to 13, inclusive, together.

Child benefit is a universal payment that assists parents with the cost of raising children and contributes towards alleviating child poverty. The estimated expenditure on child benefit in 2014 is around €1.9 billion and it is currently paid to around 613,000 families in respect of some 1.17 million children. The Department does not have information on the number of children for whom child benefit is not being paid, as this would include cases where benefit has been refused but also cases where parents may not have claimed child benefit.

Information held on the number of child benefit claims which have been disallowed as a result of failure to satisfy the Habitual Residence Condition is limited. In 2013 a total of 745 claims (12.7%) were disallowed on this ground, with 444 (9.2%) disallowed in 2014 to date. However, these figures may include cases where subsequent applications from the same customer have been successful.

Under EU Regulations, the country of employment pays family benefits even though the family may reside in another EU Member State (Articles 11.3(a) and 67 of EU Regulation 883/04 refer). If both parents are employed in different EU Member States, the country where the children reside is competent to pay family benefits. In such cases the second Member State may have to make a supplement payment if the family benefit in that State is higher than the amount awarded by the primary competent State.

There are currently 446 claims, involving 879 children, where a supplement based on residency is being paid. This supplement is paid for any case where at least one parent is employed in another EU Member State. The rate paid is the differential rate and therefore includes families who have immigrated to Ireland. Child benefit does not cease to be paid unless the rate in the other Member State is higher than in Ireland. The Department does not hold any statistics on the number of claims that may have ceased due to a parent emigrating to work in another EU Member State.

Invalidity Pension Appeals

Questions (14)

Martin Heydon

Question:

14. Deputy Martin Heydon asked the Tánaiste and Minister for Social Protection if a person (details supplied) in County Kildare who has an appeal in for invalidity pension will be medically assessed; and if she will make a statement on the matter. [39473/14]

Written answers

Tánaiste and Minister for Social Protection

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 01st October 2014, who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Financial Services Regulation

Questions (15)

Terence Flanagan

Question:

15. Deputy Terence Flanagan asked the Minister for Finance his views on a matter (details supplied) regarding financial brokers; and if he will make a statement on the matter. [39329/14]

Written answers

Minister for Finance

For the purposes of this reply I understand "financial broker" to mean a retail intermediary who receives and transmits orders in certain financial products and/or provides advice in relation to those products and is authorised by Central Bank as one of the following:

- an insurance/reinsurance intermediary under the European Communities Insurance Mediation Regulations 2005,

- an investment intermediary under the Investment Intermediaries Act 1995, or

- a mortgage intermediary under the Consumer Credit Act 1995.

The Central Bank is responsible for supervising some 3,200 Retail Intermediaries, which vary in size and activity. Retail Intermediaries employ over 30,000 employees, with firms reporting over 5 million policies/financial products held by their clients. Much of the regulation of retail intermediaries is focussed on consumer protection and in that respect the Central Bank's impact rating of retail intermediaries reflects that these firms are not authorised to hold client money and the failure of any one firm would not cause economic or systemic problems. However, it is also recognised that these firms have the capacity to cause consumer detriment, for example, through mis-selling, overcharging or poor systems and controls.  

I am advised by the Central Bank that its Strategic Plan 2013 - 2015 sets out the Bank's strategy of assertive risk-based supervision underpinned by a credible threat of enforcement. Enforcement is an important tool to effect deterrence, achieve compliance and promote positive behaviour. The Central Bank takes enforcement action against regulated entities under its Probability Risk and Impact SysteM (PRISM) supervisory model. PRISM represents a challenging but proportionate risk-based system of supervision for all regulated entities operating in Ireland, based on the impact they have on the economy or on consumers if things go wrong, and the probability that problems will arise. 

In relation to the second part of the question, under sections 32D and 32E of the Central bank Act 1942 I have a role in approving the Central Bank regulations providing for fees and levies for the regulation of financial services providers, but the levels of those fees and levies is in the first instance a matter for the Central Bank. I am further advised by the Central Bank that all financial service providers are liable to pay the proportion of the annual industry funding levy attributable to the period in respect of which they were authorised by the Central Bank. Levies payable by intermediaries are determined by the firm's impact score under PRISM. Intermediaries shall be liable to pay the levy contribution (varying between €515 and €26,500 in 2014) corresponding to the firm's impact score as set out in Table 6 in the Guide to the 2014 Industry Funding Regulations.  

Levies to the Investor Compensation Company Limited and the Financial Services Ombudsman may also be payable.

Property Taxation Rate

Questions (16)

Olivia Mitchell

Question:

16. Deputy Olivia Mitchell asked the Minister for Finance if the 15% reduction which local authorities are permitted to apply to property taxes collected in their area is a once-off event or, alternatively, if it is envisaged that the 15% reduction can be applied every year, should local authorities so wish; and if he will make a statement on the matter. [39335/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that section 20 of the Finance (Local Property Tax) Act 2012 (as amended) allows a local authority to increase or decrease the basic rate of local property tax (LPT) by up to 15% in respect of residential properties situated within their administrative area. The LPT legislation requires the local authority to specify the period for which the variation to the basic LPT rate will apply.

The Minister for the Environment, Community and Local government has made regulations entitled "Local Property Tax (Local Adjustment Factor) Regulations 2014 (S.I. No. 296/2014)". These regulations specify certain procedures that must be followed in relation to when and how a local authority can change the basic rate of local property tax and the period for which the new rate can apply. Regulation 8(3)(a) permits a local authority to set a new rate of local property tax that would apply for a period of one year from the next following LPT liability date.

While a local authority is restricted to a single year each time it passes the required resolution to change the basic rate of local property tax, it may, if it so wishes, pass a resolution each year to increase or decrease the basic rate within the permitted maximum of 15%.

Revenue Commissioners Resources

Questions (17)

Thomas P. Broughan

Question:

17. Deputy Thomas P. Broughan asked the Minister for Finance the estimated savings which could be achieved for the Exchequer by increasing the number of inspectors and auditors employed by the Revenue Commissioners by an additional 100 persons. [39349/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that in 2011 Revenue's Comprehensive Review of Expenditure noted that there is a significant deterrent and voluntary compliance effect on behaviour of an effective, risk based compliance programme and that by increasing audit, investigation and compliance resources by c.125 staff, at an estimated cost of €6.5m per annum, an additional exchequer yield of €100m per annum could be achieved.  On that basis, it is estimated that increasing these resources by an additional 100 would cost an estimated €5.2m per annum with an additional exchequer yield of €80m. The additional yield was based on an estimate that each additional fully trained auditor has the capacity to bring in an average of €800,000 in audit yield.  The investment in the training and development of a Revenue Auditor can take up to three years, depending on previous relevant experience. Therefore the full additional yield for the Exchequer would not be available immediately.

Revenue undertakes a range of risk management interventions to target and confront those who do not comply, including tax evasion and black market activity. The objective is that people are deterred from filing inaccurate returns and from engaging in shadow economy activity and smuggling.  The range of interventions has broadened since 2011. Interventions include appraisals, aspect queries, profile interviews, assurance checks, enforcement, investigation and prosecutions, as well as audits.  The appropriate intervention depends on the relevant risk. The average rate of return on each type of intervention varies depending on the intervention.  In some types of interventions to tackle evasion and the black economy, such as enforcement, the focus is on the detection of drugs and fiscal smuggling where the direct exchequer yield is not the immediate objective.

It should also be recognised that Revenue operates within Government policy in relation to civil service numbers, has to prioritise its various tasks and must, for example, also deploy resources to encourage voluntary compliance by making it easier and less costly to comply.

Tax Code

Questions (18, 19, 21)

Thomas P. Broughan

Question:

18. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer, in each case, of increasing the standard rate cut-off point for PAYE to €33,000, €34,000, €35,000, €36,000, €37,000, €38,000, €39,000 and €40,000. [39350/14]

Thomas P. Broughan

Question:

19. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing the standard rate of PAYE by 1% and 2%, respectively. [39351/14]

Thomas P. Broughan

Question:

21. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing the higher rate of PAYE by 1% and 2%, respectively. [39353/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 18, 19 and 21 together.

I am advised by the Revenue Commissioners that it is not possible to apply different Income Tax rates or bands for PAYE sources of income alone. All relevant sources of income are treated equally for Income Tax purposes.

If the Deputy is interested in the effect of changes in Income Tax rates and bands more generally, the Revenue Commissioners Budget 2015 Ready Reckoner, is available on the Commissioners' website at http://www.revenue.ie/en/about/statistics/index.html. This shows a number of indicative changes to rates and thresholds. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro-rata basis with those displayed in the Reckoner. The Ready Reckoner will be updated in due course after Budget 2015.

VAT Rate Reductions

Questions (20)

Thomas P. Broughan

Question:

20. Deputy Thomas P. Broughan asked the Minister for Finance the estimated cost to the Exchequer of decreasing the higher rate of VAT from 23% to 22% and 21%, respectively; and the cost of decreasing the lower rate of VAT from 13.5% to 12.5%. [39352/14]

Written answers

Minister for Finance

Decreasing the higher rate of VAT from 23% to 22% would cost the Exchequer €271 million in a full year, while a decrease from 23% to 21% would cost €542 million.  Decreasing the 13.5% rate of VAT to 12.5% would cost the Exchequer €246 million in a full year.

Question No. 21 answered with Question No. 18.

European Investment Bank Loans

Questions (22)

Patrick O'Donovan

Question:

22. Deputy Patrick O'Donovan asked the Minister for Finance in view of the fact that the European Investment Bank has agreed to provide funding towards the library extension at the University of Limerick, if he will indicate if and when he will be in a position to allocate the moneys towards this loan facility, so work may begin at the university; and if he will make a statement on the matter. [39387/14]

Written answers

Minister for Finance

The EIB is the long-term financing institution of the European Union. Its mission is to help implement the EU's policy objectives by financing sound business projects. To finance these projects, the Bank borrows on the capital markets, passing on the benefit of its low borrowing cost to Member States due to its high credit rating.

I am aware that the EIB and the University of Limerick formally signed a loan agreement for €100 million in December 2013 in respect of the University's Capital Investment programme. This loan facility was a private agreement between the University and the Bank. Details such as timelines and amounts to be drawn down by the University under the Agreement are for negotiation and agreement by the parties to the Agreement themselves. Other than in the course of my Department's regular engagement with the EIB, this loan has had no direct State involvement. This is the case with other similar loans.

Separately, the Deputy will be aware that in relation to capital investment projects, the Department of Public Expenditure and Reform has a role in terms of setting the overall capital investment framework and the basic principles to be observed for the appraisal, assessment, procurement and evaluation of projects. Individual Ministers are responsible for projects and programmes in their areas, within that overall framework.  Decisions on the funding arrangements for those projects are also the responsibility of individual Departments.  However, I understand that in terms of the Department of Education and Skills Budget allocation, an additional €10 million in capital has been allocated in 2015 to the University of Limerick for a library project. This is separate and distinct to the loan agreement between the University and the EIB.

Departmental Staff Remuneration

Questions (23)

Billy Timmins

Question:

23. Deputy Billy Timmins asked the Minister for Finance if performance-related pay has been paid to any of his staff or staff in his Department for the years 2011, 2012, 2013 and to date in 2014; if so, the number of staff; and if he will make a statement on the matter. [39395/14]

Written answers

Minister for Finance

No performance related bonus pay has been paid to any staff member of my Department during the period 2011 to date in 2014.

Corporate Tax Compliance

Questions (24)

Terence Flanagan

Question:

24. Deputy Terence Flanagan asked the Minister for Finance his views on the OECD's base erosion and profit-shifting plan and its implications for Ireland; and if he will make a statement on the matter. [39467/14]

Written answers

Minister for Finance

I welcome the OECD's base erosion and profit shifting (BEPS) project as a very important multilateral step towards aligning taxing rights with substance and addressing double non-taxation. The seven reports released on the 16th of September represent the first milestone in this two year process. Ireland has been, and will continue to be, actively involved in the working groups on all 15 actions.

As the BEPS process is, as yet, only at its mid-point, it is too early to determine the extent of the implications, however this project should present more opportunities than challenges for Ireland. The alignment of taxing rights with real economic substance has been at the core of Irish economic policy for many years and as I mentioned above is a central concept of the BEPS project.

In terms of the other potential implications of the BEPS project for Ireland I would like to draw your attention to a paper which I released yesterday on BEPS. This paper forms part of the economic impact assessment of Ireland's corporation tax policy carried out by my department over the last year. This paper summarises the current position of the BEPS project, such as the positive findings in relation to the digital economy, that it is not possible to separate the digital economy from the economy as a whole, the interim findings in relation to harmful tax practices, transfer pricing and other technical issues and provides an insight into how the suite of actions could impact upon Ireland.

I would also draw your attention to the recent topical issues debate, tabled by Deputy McGrath, which dealt with this very issue.

Financial Services Regulation

Questions (25)

Peadar Tóibín

Question:

25. Deputy Peadar Tóibín asked the Minister for Finance if he will review the mis-selling of payment protection insurance by Permanent TSB to a person (details supplied) in County Meath. [39489/14]

Written answers

Minister for Finance

I am advised by Permanent TSB that this case had previously been investigated by the Bank and had been referred to and adjudicated by the Financial Services Ombudsman (FSO) in November 2013, under case 13/74414.  The FSO did not uphold the case and as the Deputy may be aware, under the Relationship Framework the State does not intervene in the day to day operations of the bank or their management decisions.

Public Sector Staff Remuneration

Questions (26)

Maureen O'Sullivan

Question:

26. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform his views on whether it is time to end the financial emergency measures in the public interest with regard to teachers (details supplied); and if he will make a statement on the matter. [39366/14]

Written answers

Minister for Public Expenditure and Reform

I refer the Deputy to my reply to Questions Nos. 3 and 5 of 9 October 2014. The position remains unchanged.