Paul Murphy
Question:62. Deputy Paul Murphy asked the Minister for Finance if Irish Water customers that do not complete the Irish Water application pack are eligible to claim the €100 tax credit. [40717/14]
View answerIrish Water Administration
Questions (62)
Written answers
As the Deputy is aware, I announced in the Budget that tax relief for water charges will be introduced. Relief will be available at the standard rate of 20%, on water charges paid, up to a maximum of €500 per annum, which may result in tax relief up to €100 per household per annum.
My officials are working closely with their colleagues in the other relevant Departments and Agencies, in the development of the operational processes that will be employed to deliver the tax relief. The precise process is not yet finalised. However, it is envisaged that individuals who do not complete the Irish Water application pack will not be eligible to claim the relief, as the PPSN of the individual will be required in order to process the claims.
Tax Reliefs Availability
Questions (63)
Billy Kelleher
Question:63. Deputy Billy Kelleher asked the Minister for Finance in the context of the Finance Bill if he will include the graduate entry medicine loan relief scheme (details supplied) to assist with the financial pressure placed on our medical students; and if he will make a statement on the matter. [40712/14]
View answerWritten answers
I have considered the proposal for the introduction of a tax relief for Graduate Entry Medicine (GEM) loans and I do not consider that the tax system is the appropriate way to address the affordability of the GEM programme.
The affordability and funding of undergraduate medical education is in the first instance a matter for the Department of Education and Skills, having due regard to the needs and requirements of the health system for medical practitioners.
The Department of Health's current focus in relation to the recruitment and retention of medical practitioners is on implementation of the recommendations of the Strategic Review of Medical Training and Career Structure, completed earlier this year. The Strategic Review reports address a range of barriers and issues relating to the recruitment and retention of doctors in the Irish public health system, and offer solutions and recommendations that will enable the State to build a sustainable medical workforce for the future.
Banking Sector Regulation
Questions (64)
Pearse Doherty
Question:64. Deputy Pearse Doherty asked the Minister for Finance the systems he has put in place to ensure that the structures of the relationship framework which determines the relationship between the bank and the Executive are being observed by State backed banks and that the governance of the bank is fit-for-purpose. [40724/14]
View answerWritten answers
As the Deputy will be aware the Relationship Frameworks have been in place with the banks since March 2012. The Frameworks govern the relationship between the individual banks and the State and compliance with these agreements and each bank's various other commitments are monitored closely on both sides.
Officials from my Department meet with the senior management team in each of the banks regularly to be updated on a range of issues while these officials also maintain contact with other personnel in the banks to track events and decisions at the banks on a week to week basis.
As part of the banks' overall compliance procedures there is also regular internal reviewing of any legal agreements in place and any breaches must be reported to the Central Bank.
In addition the banks are subject to the provisions of the Central Bank of Ireland's Corporate Governance Code for Credit Institutions and Insurance Undertakings ('the Central Bank Code') the code is available on the Central bank website at:
http://www.centralbank.ie/regulation/poldocs/consultation-papers/Documents/CP41%20-%20Corporate%20Governance%20Requirements/Corporate%20Governance%20Paper%20-%204%20November%20(3)%20Amended%2023%20Feb%202011.pdf. The code sets out minimum statutory requirements on how banks and insurance companies should organise the governance of their institutions. The requirements include:
- Boards must have a minimum of seven directors in major institutions and a minimum of five in all others;
- Requirements on the role and number of independent non-executive directors;
- Criteria for director independence and consideration of conflicts of interest;
- Limits on the number of directorships which directors may hold in financial and non financial companies to ensure they can comply with the expected demands of board membership of a credit institution or insurance company;
- Clear separation of the roles of Chairman and CEO;
- A prohibition on an individual who has been a CEO, director or senior manager during the previous five years from becoming Chairman of that institution;
- A requirement that board membership is reviewed at a minimum every three years;
- A requirement that boards set the risk appetite for the institution and monitor adherence to this on an ongoing basis;
- Minimum requirements for board committees including audit and risk committees;
- A requirement for an annual confirmation of compliance to be submitted to the Central Bank.
Banking Sector Regulation
Questions (65, 66)
Pearse Doherty
Question:65. Deputy Pearse Doherty asked the Minister for Finance the possible implications for the State if a State backed bank is found to have committed fraud; and if he will make a statement on the matter. [40725/14]
View answerPearse Doherty
Question:66. Deputy Pearse Doherty asked the Minister for Finance the timeframe and to what extent the activities of State backed banks are monitored to ensure they are operating in a way that will not leave the State open to financial or reputational damage. [40726/14]
View answerWritten answers
I propose to take Questions Nos. 65 and 66 together.
The Deputy will be aware that each of the State backed banks takes steps to ensure proper risk management and governance structures are in place (supported by robust internal audit structures). Further details of these steps are set out in the annual reports of each of the State backed banks. In addition to this, each of the State backed banks is subject to independent external audit review and ongoing regulatory oversight by the Central Bank of Ireland. Nothing arising from these internal or external processes has been brought to my attention to indicate a weakness at any of the banks which would materially increase the risk of a fraud being committed.
In relation to the Deputy's question on the possible implications for the State if a State backed bank was to be found to have committed fraud, I am not prepared to speculate on such a hypothetical matter, however, I would encourage any party who is aware of any incidences of fraud whether in the State backed banks or otherwise to report such fraud to An Garda Síochána.
VAT Rate Application
Questions (67)
Stephen Donnelly
Question:67. Deputy Stephen S. Donnelly asked the Minister for Finance his views on the VAT rate in relation to food supplements such as probiotics and glucosamine, which provide sustenance and are not taken for sports nutrition or body-building purposes but which, according to the Revenue Commissioners, should be liable to standard rate VAT of 23%, despite published guidance to say that food supplements that provide sustenance may continue to be supplied at the zero VAT rate; and if he will make a statement on the matter. [40727/14]
View answerWritten answers
The EU VAT Directive generally provides that supplies of goods and services be chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate for "clearly defined social reasons" where the products were liable to VAT at the zero rate on and from 1 January 1991.
As set out in eBrief 70/2011 a range of food supplements and vitamins that encourage the maintenance of health, through the sustenance derived from a normal, healthy diet, benefit from the zero rate. However, a food supplement taken for the purposes of muscle growth or body mass increase, or for the purposes of weight reduction or bodily sculpture, cannot benefit from the zero rate since such products would not meet the "clearly defined social reasons" criteria. The two supplements mentioned by the Deputy could be a zero-rated food supplement or one liable at the standard rate but there is insufficient information provided to make such a determination. I would suggest that the Deputy provide details of the supplements to which he refers to the Revenue Commissioners who will advise on their correct VAT treatment as appropriate.
Banking Sector
Questions (68)
Ciaran Lynch
Question:68. Deputy Ciarán Lynch asked the Minister for Finance if measures are contemplated to alleviate the plight of active and deferred members of the Permanent TSB pension plan who are adversely affected by the wind up of the scheme; and if he will make a statement on the matter. [40767/14]
View answerWritten answers
I have been advised by Permanent TSB that contributions to the Defined Benefit pension schemes were discontinued in 2013. Following the discontinuance of the contributions the Trustees of the Defined Benefit Schemes proceeded to wind up the Schemes and the trustees are currently arranging for the assets of the schemes to be allocated among the pensioners, deferred employees and current employees. This process is still ongoing and details of benefits provided are not available.
As the Deputy may be aware, decisions on matters such as this are the responsibility of the Boards and Management of the institutions themselves; in this case permanent tsb Group Holdings plc. I understand that permanent tsb Group examined all options in respect of this matter before coming to the difficult decision in 2013 that, given the challenging financial position of the Group, it was not possible to make the injection of the quantum of funds which would have been required to ensure the continued solvency of the schemes. In its place the Group agreed to underwrite the significant wind-up expenses of the schemes and to making an ongoing 12% of payroll contribution to the new defined contribution pension plan for its current employees who were members of defined benefit plans.