Jerry Buttimer
Question:67. Deputy Jerry Buttimer asked the Tánaiste and Minister for Social Protection if she will provide an update on the review of rent supplement limits; and if she will make a statement on the matter. [43660/14]
View answerRent Supplement Scheme Eligibility
Questions (67)
Written answers
The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources. There are approximately 72,500 rent supplement recipients for which the Government has provided over €344 million for 2014.
The Department is undertaking a review of the maximum rent limits.
I am concerned that the impact of increasing limits at a time of constrained supply will yield only a very marginal increase in available supply for rent supplement recipients, with the only certainty that raising limits will increase costs disproportionately for the Exchequer with little or no new housing available to new recipients. Raising rent limits may not be the solution to the problem as it is likely to add to further rental inflation and impact, not alone on rent supplement recipients, but also on many lower income workers and students. I plan to keep this matter under close review.
I can assure the Deputy that officers administering rent supplement throughout the country have considerable experience and make every effort to ensure that accommodation needs are met including through the use of their discretionary statutory powers, as necessary. A notice reminding staff of their statutory discretionary power to award a supplement for rental purposes in exceptional cases, for example, when dealing with applicants who are at risk of losing their tenancy was circulated in July 2014, including to staff operating in the Cork area.
Pension Provisions
Questions (68)
Jerry Buttimer
Question:68. Deputy Jerry Buttimer asked the Tánaiste and Minister for Social Protection now that details of the effect of the wind-up of the Permanent TSB pension scheme on individual pension entitlements have been published, if she will consider taking further steps to protect the entitlements of individual members of pension schemes which are being wound up; if she will consider making retrospective the protection measures she introduced for pension schemes which are wound up on or after December 2013; and if she will make a statement on the matter. [43672/14]
View answerWritten answers
I am very conscious of the funding difficulties encountered by many pension schemes in recent years. You will be aware that a range of legislative measures have been put in place over a number of years to assist both employers and trustees of pension schemes to respond to these difficulties and to achieve a sustainable pension provision for all scheme members and beneficiaries.
Section 48 of the Pensions Act sets out the order (wind up priority order) in which the assets of a defined benefits pension scheme are distributed in the event of the wind up of a scheme. The wind up priority order was amended by the Social Welfare and Pensions (No.2) Act in 2013. Prior to these changes pensioner benefits were given priority over the benefits of active and deferred scheme members. The recent changes to the wind up priority order essentially de-prioritises a portion of pensioner benefits in the manner in which the resource of a scheme are distributed on the windup of a pension scheme. These changes make more resources of the scheme available in the initial distribution of assets to active and deferred scheme members. The impact of these changes will be determined by the level of funding in a pension scheme at the time of the wind up.
The matter of the date from which the provisions in the Social Welfare Pensions (No.2) Act would apply was considered in preparing the legislation. However, based on advice received, the revised provisions can only apply to defined benefits pension schemes which have commenced wind up after the legislation has been enacted.
You will appreciate that it is not appropriate for me to comment on issues relating to a particular pension scheme as these are a matter for the companies involved and the trustees of the pension scheme.
Question No. 69 withdrawn.
Departmental Staff Recruitment
Questions (70)
Billy Timmins
Question:70. Deputy Billy Timmins asked the Minister for Finance further to Parliamentary Question No. 307 of 4 November 2014, the length of time, number of interviews, advertising and short-listing for the position of Secretary General of his Department; and when the Secretary General was appointed. [43513/14]
View answerWritten answers
I wish to inform the Deputy that at the request of the Top Level Appointments Committee (TLAC), the post was openly advertised by PAS on 28 October 2011 in the Irish Times and closed on 24 November 2011. 1,700 job alerts were sent from www.publicjobs.ie to people with a registered interest in this area. The field was strengthened through executive search procedures within PAS and with the assistance from Amrop Strategis who were engaged following a procurement exercise.
A board comprising Frank Daly (Former Chairman Revenue Commissioners and NAMA), Prof Frances Ruane (ESRI), Martin Murphy (MD Hewlett Packard and TLAC) and Robert Watt (Sec Gen DPER and TLAC) was established to shortlist applications and hold preliminary interviews if necessary. Nineteen (19) applications were presented to this Board on 19 December 2011 which shortlisted four (4) without interview for consideration by TLAC.
Upon receipt of the four (4) names, TLAC requested that a further search be carried out to augment the field. MERC partners were chosen following a procurement exercise and submitted 4 additional names. TLAC held interviews on 20 February 2012 and made a submission to Government on foot of which John Moran, who was among the original 4 names presented by PAS, was appointed to the position.
Deposit Interest Rates
Questions (71)
Terence Flanagan
Question:71. Deputy Terence Flanagan asked the Minister for Finance the measures he has introduced to encourage consumers to save and value thrift; his views on the DIRT tax rate; and if he will make a statement on the matter. [43532/14]
View answerWritten answers
In recent years the DIRT rate has been increased to raise additional revenue, and all deposit interest is now liable to DIRT at a rate of 41%. Previous DIRT rates were below the higher rate of income tax, and this, in effect, incentivised saving. The decision to raise the rate of DIRT was taken to encourage spending in the economy with a view to stimulating growth and employment.
Certain exemptions apply from DIRT, the main ones include:
- Individuals aged over 65 (subject to income limits)
- Permanently Incapacitated Individuals
- Companies, Pension Funds and Charities (Irish resident companies pay tax on investment income at 25%)
- Non-Resident Account Holders
There are alternative savings products available which are tax free (Savings Bonds, Saving Certificates, Instalment Savings and the National Solidarity Bonds).
Over a longer term, pension savings are encouraged by the exemption from taxation at the marginal income tax rate of ongoing contributions by individuals (subject to annual limits which increase with age). Investment growth of pension savings are also tax exempt while pension benefits are taxed on drawdown at marginal rates subject to a tax-free retirement lump sum up to a life-time maximum of €200,000.
Tax Code
Questions (72)
Ciaran Lynch
Question:72. Deputy Ciarán Lynch asked the Minister for Finance if he will introduce income tax relief on loans to graduate entry medical students as outlined in correspondence (details supplied); and if he will make a statement on the matter. [43554/14]
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.
NAMA Property Sales
Questions (73)
Robert Troy
Question:73. Deputy Robert Troy asked the Minister for Finance if his attention has been drawn to the practice being carried out by the National Asset Management Agency whereby it is selling property without adequate advertising, thereby reducing the opportunity to realise the best possible price for the asset; if he will make inquiries into this practice and ensure it ceases; and if he will make a statement on the matter. [43557/14]
View answerWritten answers
I note that the Deputy has provided no detail to support this allegation. NAMA's policy is that the sale of all loans and the sale of properties by debtors and receivers should be openly marketed to ensure that the best price available in the market is achieved in all instances. NAMA has provided extensive information on the conduct of both loan sales and the sale of properties by debtors and receivers and its approach to open marketing has been confirmed by the Comptroller and Auditor General. In this regard, I refer the Deputy in particular to the Comptroller and Auditor General's NAMA Progress Report 2010 2012, which was published May of this year. NAMA operates a dedicated email address, oir@nama.ie, to enable TDs and Senators to raise matters of concern directly with it and I would recommend that if the Deputy is concerned about a particular sale, he should feel free to bring this to NAMA's attention at this address. I can assure the Deputy that NAMA fully investigates all matters of concern brought to its attention.
Property Tax Administration
Questions (74)
Seán Ó Fearghaíl
Question:74. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will consider the case of a person (details supplied) in County Kildare who is living on a social welfare payment and, following a maximum deduction at source, still has a shortfall of property tax to pay; the way such persons can meet this type of payment; and if he will make a statement on the matter. [43583/14]
View answerWritten answers
I am advised by Revenue that the person to whom the Deputy refers has availed of a 'Partial Deferral' (50%) of Local Property Tax (LPT) in respect of her liabilities for 2013, 2014, 2015 and 2016 and is meeting the balance through deduction at source (DAS) from her Department of Social Protection (DSP) payment. Her entitlement to such a deferral arises from her income threshold level.
However, where such a DAS arrangement takes a person's weekly amount below the 'de minimis' threshold of €186, then deduction of the full liability can not take place. This 'de minimus' amount is enshrined in Social Welfare legislation and it was considered, at the time of the introduction of LPT, that it was not appropriate to change the law in this regard. In such circumstances property owners usually avail of one of the other payment options to meet the outstanding balance not covered by the DAS arrangement. From Revenue's analysis of these types of situations it seems that most people prefer to use the Payment Service Provider (PSP) option on a phased basis to meet the shortfall. For the Deputy's information the approved PSPs associated with this option are, An Post, Omnivend, Payzone and Paypoint.
Given the circumstances of the case, a member of the LPT team has already made contact with the person in question. The LPT team member firstly clarified the concept of Partial Deferral for her, particularly in respect of threshold limits and how it (the amount deferred), including interest at a rate of 4% attaches as a charge to the property. The team member also confirmed that any such charge would have to be satisfied before any future sale or transfer could be completed.
The LPT team member then outlined the various alternative payment options that are available to her in addition to DAS and on the basis of the conversation the person opted to meet the balance of her 2014 liability through a PSP over the remaining weeks of the year. The transaction charges in respect of the various PSP's were also outlined during the conversation.
Finally, Revenue has assured me that the person's LPT obligations are now being fully met and are operating in a manner that suits her individual circumstances.
Tobacco Smuggling
Questions (75)
Finian McGrath
Question:75. Deputy Finian McGrath asked the Minister for Finance the current rate of illicit tobacco here; and if he will make a statement on the matter. [43615/14]
View answerWritten answers
I am advised by the Revenue Commissioners that the scale of the illicit cigarette market in Ireland is estimated through annual surveys undertaken, for them and the National Tobacco Control Office of the Health Services Executive, by Ipsos MRBI. The most recent survey, undertaken in 2013, indicated that 11% of the cigarettes consumed in Ireland were illicit, and that a further 5% were non Irish duty paid which were legally brought into the country. The comparable figures for illicit cigarettes in 2012 and 2011 were 13% and 14% respectively, with the legally imported non Irish duty paid cigarettes at 6% and 7%. This would suggest that the extent of the problem is being contained as a result of the extensive action being taken against the smuggling, distribution and sale of illicit product.
An additional survey was conducted in 2013 to ascertain the incidence of illicit packs of "roll your own" tobacco. The survey found that 15% of the packs held by smokers surveyed were illicit, and that a further 2% were legal Non-Irish Duty Paid.
A further survey is being undertaken this year and it is expected that the results will be available towards the end of the first quarter in 2015.
I am advised also that combating the illegal tobacco trade is, and will continue to be, a high priority for Revenue. Their work against this illegal activity includes a range of measures designed to identify and target those who are engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those responsible. This multi-faceted strategy includes on-going analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources at points of importation and within the country.
Interception of illicit tobacco products is achieved by Revenue through a combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages. Revenue officers also target the illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
Revenue cooperates extensively with An Garda Síochána in combating the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland, through a cross-border group on tobacco enforcement, to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, cooperation takes place with other revenue administrations and with the European Anti-Fraud Office, OLAF, in the on-going programmes at international level to tackle the illicit trade.
I am assured that the commitment to acting against all stages of the supply chain for illicit products will be maintained and that Revenue will continue to make every effort to ensure that those involved in the illicit trade are brought to account before the Courts for their criminal activities.