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Thursday, 20 Nov 2014

Written Answers Nos. 1 - 25

Domiciliary Care Allowance Appeals

Questions (2)

Michael Healy-Rae

Question:

2. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the position regarding back-dated domiciliary care allowance from April 2010 which has now gone to appeal and a respite care grant for 2010 in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [44571/14]

View answer

Written answers

The Social Welfare Appeals Office has advised me that a backdating Domiciliary Care Allowance appeal by the person concerned was referred to an Appeals Officer on the 4 November 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 has advised me that there is no record of any appeal by the person concerned in respect of a Respite Grant Claim having been received by that office.

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.

Question No. 3 withdrawn.

Exceptional Needs Payment Applications

Questions (4)

Bernard Durkan

Question:

4. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if an exceptional needs payment will issue in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [44580/14]

View answer

Written answers

According to the records of this Department the person concerned has not made a recent application for an exceptional needs payment. This Department has written to the person concerned to advise her of the locations and clinic times of the community welfare service for her catchment area. It is open to the person concerned to make an application for an exceptional needs payment at the advised locations.

Question No. 5 withdrawn.

Social Welfare Overpayments

Questions (6)

Bernard Durkan

Question:

6. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if she will consider waiving the collection of alleged overpayment of child benefit in the case of a person (details supplied) in County Kildare in view of the family circumstances and the information available from Tulsa; and if she will make a statement on the matter. [44655/14]

View answer

Written answers

Child Benefit is payable to the person with whom a qualified child normally resides. In the case of the person concerned her children left her household in July 2006 and payment continued to November 2006 resulting in an overpayment of €3,420.00 for the period August 2006 to November 2006. She did not appeal this decision and agreed to repay the overpayment to the Department by monthly deductions from her child benefit. This overpayment was fully recovered in August 2014.

Following a recent audit of the Department’s records it was noted that the person concerned had also incurred an overpayment on her Early Childcare Supplement (ECS) for the same period (July 2006 to September 2006), amounting to €500.00. She was notified of this outstanding debt on 10 November 2014 and advised of the options available for repayment.

Based on her response to this correspondence a deciding officer will review the case under the code of practice relating to the recovery of overpayments.

One-Parent Family Payment Payments

Questions (7)

Bernard Durkan

Question:

7. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the correct level of one parent family payment payable in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [44668/14]

View answer

Written answers

According to the information available to this Department, the correct level of one parent family payment payable to the person concerned is €196.90 per week after a means deduction of €22.50 and an overpayment deduction of €28.20. In addition the person concerned receives a fuel payment of €20.00 per week resulting in a gross weekly payment of €216.90.

Departmental Budgets

Questions (8)

Michael McGrath

Question:

8. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if the cost to her Department of the €100 payment in respect of water charges will be met partially or in full by expenditure cuts elsewhere within the social protection budget; and if she will make a statement on the matter. [44690/14]

View answer

Written answers

The Budget Day Estimates provided the Department of Social Protection with €66 million in relation to supports for water services.

In line with the Government decision yesterday, the Department of Social Protection will administer the new water conservation grant on behalf of the Department of Environment, Community and Local Government. This grant will replace the water support measures announced in the Budget.

The financing of the water conservation grant will not require the introduction of any new expenditure reduction measures to be introduced by the Department.

Personal Public Service Numbers Data

Questions (9)

Michael McGrath

Question:

9. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if personal public service numbers will be required by her Department to administer the €100 payment in respect of water charges; and if she will make a statement on the matter. [44691/14]

View answer

Written answers

The PPS Number is a unique identifier established by legislation for accessing specific public services. At the core of the PPS Number is the idea that it is a device to assist in and enhance the efficiency of, the provision of public services to members of the public.

The legal basis of the PPS Number and its use is contained in the Social Welfare Consolidation Act 2005 (as amended). Only bodies specified in statute or their agents can use the PPS Number. Section 262 of the Act allows the PPS Number to be used by a specified body in certain limited ways in the course of a “transaction” with a member of the public. In line with its role as a ‘specified body’ the Department of Social Protection utilises the PPS Number, where appropriate, in the delivery of services to the public. This will include the administration of the €100 water conservation grant payment.

Rent Supplement Scheme Data

Questions (10)

Barry Cowen

Question:

10. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection if she will provide in tabular form by local authority the number of recipients of rent supplement; the number transferred to the housing assistance payment; the total costs of rent supplement in 2012, 2013 and to date in 2014; and if she will make a statement on the matter. [44709/14]

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Written answers

The purpose of rent supplement is to provide short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. There are currently approximately 72,500 rent supplement recipients for which the Government has provided over €344 million for 2014.

The Department’s strategic policy direction is to transfer responsibility for recipients of rent supplement with a long-term housing need to local authorities under the Housing Assistance Payment (HAP). HAP will provide a more integrated system of housing supports and has been designed to allow any households that find full-time employment to remain in the scheme. Rent supplement will continue to be paid to those already in the private rented sector who have a short-term need of rental support, often as a result of the loss of employment.

HAP was introduced in Cork County Council, Limerick City and County Council and Waterford City and County Council on 15th September, 2014 and in South Dublin County Council, Kilkenny County Council, Monaghan County Council and Louth County Council on 1st October, 2014.

To date, over 200 customers have been taken onto the HAP scheme, which includes both direct transfers from the rent supplement scheme and new applicants that have being assessed as qualifying for social housing support by the local authority.

Department of Social Protection officials are continuing to work closely with those in the lead Department of Environment, Community and Local Government to support the implementation of HAP within the selected local authorities.

HAP Statistics by Local Authority are provided in the attached tabular statement. Statistics on rent supplement recipients are maintained on a County basis. Rent Supplement recipients and expenditure for 2012 and 2013 are also provided.

Table 1: HAP Recipients by Local Authority

Local Authority

Recipients

Cork County Council

16

Kilkenny County Council

16

Limerick City & County Council

158

Louth County Council

6

Monaghan County Council

3

Waterford City & County Council

8

Total

207

Table 2:

Rent Supplement: End of Year Recipient Numbers & Expenditure: 2012 to Date

Year

Recipients

Cost €000

2012

87,684

422,536

2013

79,788

372,909

End October 2014

72,444

284,000

Table 3

Rent Supplement Recipients by County, End October 2014

COUNTY

RECIPIENTS

CARLOW

1,065

CAVAN

398

CLARE

1,354

CORK

8,351

DONEGAL

1,826

DUBLIN

26,978

GALWAY

3,608

KERRY

1,741

KILDARE

3,751

KILKENNY

1,129

LAOIS

1,010

LEITRIM

335

LIMERICK

2,565

LONGFORD

475

LOUTH

2,272

MAYO

1,639

MEATH

1,744

MONAGHAN

359

OFFALY

1,043

ROSCOMMON

679

SLIGO

461

TIPPERARY

1,952

WATERFORD

1,386

WESTMEATH

1,524

WEXFORD

2,659

WICKLOW

2,140

Total

72,444

Skills Development

Questions (11)

Terence Flanagan

Question:

11. Deputy Terence Flanagan asked the Tánaiste and Minister for Social Protection her plans for reskilling the long-term unemployed; and if she will make a statement on the matter. [44713/14]

View answer

Written answers

In the first instance, the Government’s primary strategy to tackle long-term unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth.

However, the Government also recognises the need for additional measures in the interim while the economy recovers. This is the rationale behind the Government’s Pathways to Work Strategy. Pathways to Work 2015 prioritises the allocation of available resources to the long-term unemployed. While many long-term unemployed return to occupations that required little or no reskilling, the Government recognises that in some cases certain skills may not be in strong demand at a particular point in time or that a de-skilling effect may take place when someone remains out of work for a long-period of time. The ambition in Strand 3 of Pathways to Work 2015 is: “To provide unemployed people, in particular people who are long-term unemployed and young unemployed people, with opportunities to enhance their job prospects through value-adding work experience, education and training activities.”

Hence, the Department in conjunction with other Departments and agencies (most notably the Department of Education & Skills and Solas) has put in place a range of options for reskilling as part of the wider whole of government approach contained in the Pathways to Work Strategy. A range of SOLAS, ETB Further Education and Training and Higher Education Programmes are available to meet the needs of the long term unemployed. Fifty seven thousand places are targeted for the long term unemployed in 2014, and subject to demand a further 57,000 will be made available in 2015.

The places targeted for the long-term unemployed in 2014 include 8,700 places on Solas (formerly FÁS) training courses for unemployed people, 6,200 on Momentum, 4,300 on Springboard, 4,000 on PLC courses, 3,200 on VTOS, and 29,000 opportunities on other further education programmes.

The former FÁS training provision is being progressively transferred to the new regional Education and Training Boards (ETBs) up to mid-2014. The main FÁS/Solas programmes of relevance to the long term unemployed are Specific Skills Training, Traineeships, Local Training Initiatives, and training for people with disabilities through Specialist Training Providers.

MOMENTUM, a scheme for education and training interventions, which is part of the Government’s Action Plan for Jobs initiative, was rolled out by the Department of Education in 2013. MOMENTUM supports the provision of free education and training projects to allow up to 6,500 long term jobseekers to gain skills and to access work opportunities in identified growing sectors.

Long-term unemployed people undertaking re-training on a full-time basis generally qualify either for a Solas training allowance or for support from the Department of Social Protection’s Back to Education Allowance scheme. Where the training is part-time or of shorter duration, support may be provided under the Part-time Education Option (PTEO) and Education Training and Development Option (ET&D). The PTEO allows participants to attend part-time day/evening or weekend courses of education or training and retain their jobseeker’s payment while an entitlement exists provided that they continue to satisfy the conditions of being available for and genuinely seeking employment on an on-going basis. Payment is made at the same rate as the primary payment and no maximisation of payments occurs. The ET&D allows participants to attend certain courses of education, training or development of short duration and retain their jobseeker’s payment while an entitlement exists. Participants are exempt from engaging in job search but must be available for employment should an opportunity arise.

In conjunction with these programmes, there is also ongoing engagement between Intreo Offices and Education and Training Boards (ETBs) to ensure that training programmes are relevant to the needs of the unemployed.

More generally, substantial reform is being undertaken in the education and training sector to ensure programmes are relevant to the needs of learners and employers.

When taken together these reforms and initiatives constitute a comprehensive approach to the reskilling of the long-term unemployed.

Departmental Staff Data

Questions (12)

Barry Cowen

Question:

12. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection if she will provide in tabular form, the number of staff in her data protection office; if she has a specified data protection officer; and if she will make a statement on the matter. [44733/14]

View answer

Written answers

Staff numbers in Business Information Security Unit:

NUMBER OF STAFF   

Grade

1

Principal

1

Assistant Principal

3

Higher Executive Officers 

The Department of Social Protection has a designated Head of Information Security at Principal level. This person oversees the Business Information Security Unit, comprising four other staff, whose specialist function is promoting and supporting the development and implementation of data protection and information security compliance across the Department.

Tax Code

Questions (13)

Charlie McConalogue

Question:

13. Deputy Charlie McConalogue asked the Minister for Finance when a final response will issue regarding correspondence (details supplied) sent to his Department; and if he will make a statement on the matter. [44570/14]

View answer

Written answers

A response to your correspondence, in relation to the VAT treatment of the installation of fixtures and fittings and cross-border concerns, was issued on 20 November 2014. 

In the first instance it is worth pointing out there is no competitive disadvantage between UK and Irish VAT registered business in terms of supplying to a UK business. Depending on the supply being offered, different variations of VAT treatment may apply, but in all cases, suppliers established in Ireland compete on a level playing field in the UK market with UK established suppliers.

The EU VAT Directive, with which Irish and UK VAT legislation must comply, distinguishes between a supply of goods and a supply of services.  Where an Irish VAT registered trader makes a supply of goods to a UK business, the Irish trader zero-rates the supply and the UK business self-accounts for VAT on the goods.  If the UK trader purchases the goods from a UK business, VAT would apply on the supply as normal.  In both cases the UK trader will have the right to deduct the VAT charged on the goods if they are used for their taxable supplies.  In this case the VAT treatment of the supply of goods is the same whether the supply is made from an Irish or a UK based supplier.

With regard to the supply of a service of the installation of fittings to a UK business, the same VAT treatment applies.  Where supplied by an Irish company, the service is zero-rated, and the UK business self-accounts for VAT.  Where supplied by a UK company VAT is charged on the supply as normal.  In both cases the UK trader will have the right to deduct the VAT charged on the service of the installation of fittings if they are used for their taxable supplies.  Again, there is no difference in the entitlement to deduct input VAT by the UK company who receives the services, whether the supplier is based in Ireland or the UK.

The VAT situation differs where the service being supplied relates to the installation of fixtures, but in any event, there is no discrimination in terms of VAT deductibility depending on the location of the supplier.  Where a service consists of the installation of fixtures, the place of supply for VAT purposes will be the country where the installation takes place.  In the case referred to in your correspondence, the installation of fixtures will take place in Ireland which means the service is liable to VAT in Ireland.  In this situation the service should be charged with Irish VAT by both the Irish supplier and by the UK supplier, who will have to register for VAT in Ireland if not already registered. The UK recipient of the service will be charged to Irish VAT regardless of where the supplier of the service is based.  Where they are entitled to input VAT deductibility on the service received, the UK business can make a claim to the UK revenue authorities for a refund of the Irish VAT charged on the service.  While the VAT treatment is different in the case of the service of the installation of fixtures, than in the case of the service of the installation of fittings, and the supply of goods in general, it is still the case that UK and Irish suppliers of these services and goods operate on a level playing field in terms of VAT.

Tax Code

Questions (14)

Clare Daly

Question:

14. Deputy Clare Daly asked the Minister for Finance the steps he will take to amend the situation of taxation on rental income in cases where homeowners acquired property as their primary residence and had to leave it as they were no longer able to afford to pay the mortgage, or their family circumstances changed, leaving them unable to dispose of the property as a result of it being in substantial negative equity and choosing to rent it instead, the rental income being considerably less than the mortgage repayments and the injustice of them then having to pay a heavy taxation bill on this loss; and if he will address this matter. [44573/14]

View answer

Written answers

Rental income for tax purposes from such property is the gross rental income less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act 1997. The main deductible expenses are:

- any rent payable by the landlord in the case of a sub-lease;

- the cost to the landlord of any goods provided or services rendered to a tenant;

- the cost of maintenance, repairs, insurance and management of the property;

- the interest paid on borrowed money used to purchase, improve or repair the property (which, in the case of residential property, is restricted to 75% of the interest and is subject to compliance with PRTB registration requirements for all tenancies that existed in relation to the property in the relevant year); and

- payment of local authority rates.

In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.

Where the aggregate of deductible expenses in any year exceed the gross rental income, the amount of the deficit is set against rental profits of the same year from other property. Where there are no other rental profits in the same year, the deficit is carried forward as a rental loss for offset against rental profits in future years.

I have no plans at the moment to change the tax treatment of rental income for tax purposes, however, as a matter of course all such taxation measures and reliefs are considered in the context of the annual budgetary process.

Vehicle Registration

Questions (15)

Finian McGrath

Question:

15. Deputy Finian McGrath asked the Minister for Finance further to Parliamentary Question No. 68 of 8 October 2014 the position regarding the application of a transfer of residence in respect of a person (details supplied) in County Meath who having met all the criteria has to pay vehicle registration tax; and if he will make a statement on the matter. [44579/14]

View answer

Written answers

I am advised by the Revenue Commissioners that the person concerned made a claim to import a vehicle into the State free of Vehicle Registration Tax (VRT) under the Transfer of Residence exemption. He was notified that the claim did not meet the necessary criteria to qualify for this VRT exemption, together with an explanation as to why the exemption claim was refused. The person concerned was also advised of his right to appeal against this decision.

Decisions in relation to the charging of VRT are subject to a two stage appeal process. The relevant legislation requires that a person who wishes to avail of this appeal process must first pay the due VRT and thereafter make an appeal.

The person concerned was advised that he would have to pay the VRT involved to invoke the Appeal process, and would thereafter get a refund if his appeal was successful. He then paid the VRT and made a first stage appeal to the VRT Appeals Officer. This appeal was processed and the original decision by Revenue was upheld. The applicant was advised in writing to this effect, whilst also being advised that he could now pursue a second stage appeal to the Appeal Commissioners. The applicant has since submitted a second stage appeal, which will be heard in due course by the Appeal Commissioners.

Property Tax Collection

Questions (16)

Pat Rabbitte

Question:

16. Deputy Pat Rabbitte asked the Minister for Finance the percentage compliance rate with the local property tax for 2013; the number of liable persons that had their property tax deducted involuntarily by the Revenue Commissioners as a result of non-compliance; and if he will make a statement on the matter. [44592/14]

View answer

Written answers

I am informed by the Revenue Commissioners that compliance information in relation to the Local Property Tax (LPT) is available in the most up to date LPT statistics, which were published on 10 October 2014 on the Commissioners' website at: http://www.revenue.ie/en/about/statistics/lpt-compliance.html. Updates to these statistics will be published in due course.

As shown in the statistics, the overall LPT 2013 compliance rate is estimated to be 95%. This includes approximately 29,500 properties where mandatory deductions from wages/pensions are or were in operation for 2013. I am further advised by the Commissioners that prior to any such mandatory deductions taking place, the relevant individuals would have received a reminder letter from Revenue advising them of the action they should take to avoid the enforced collection of LPT from their salary/occupational pension.

Credit Register Establishment

Questions (17)

Michael McGrath

Question:

17. Deputy Michael McGrath asked the Minister for Finance when the central credit register will be fully operational; the steps that have been taken thus far in its implementation; the reason for the delay in bringing it forward; and if he will make a statement on the matter. [44628/14]

View answer

Written answers

The Credit Reporting Act 2013 provides that the Central Bank of Ireland is responsible for the establishment and operation of the central credit register (CCR).

I have been informed by the Central Bank that it intends to take a phased approach to the establishment and development of the register. The initial phase of the CCR will focus on the consumer credit market and is expected to become operational by mid-2016. A later phase will address commercial credit and is tentatively scheduled to be operational by end 2017.

The operational implementation of the credit register is a complex process and the final timeline will be influenced by:

1. the outcome of a public procurement process currently underway to source services and solutions;

2. the scale of technical and operational changes to be implemented by over 500 lenders within the scope of the CCR; and

3. the final detailed obligations to be set out in regulations.

In 2014, the Central Bank commenced a public procurement process to select a partner and solutions to support the CCR. It has also engaged with representative industry groups to explain its approach and gain an understanding of the likely implications of the CCR for lenders. It is anticipated that 2015 will be spent in developing and testing the technical solutions in partnership with relevant stakeholders with credit data being supplied by lenders on a phased basis during the course of late 2015 and into 2016.

Credit Availability

Questions (18)

Gabrielle McFadden

Question:

18. Deputy Gabrielle McFadden asked the Minister for Finance when and the way small and medium enterprises may access low interest loans from the Strategic Banking Corporation of Ireland. [44635/14]

View answer

Written answers

The SBCI has been established as a means of ensuring that SMEs are provided with sufficient finance for growth and also ensuring that credit provided to SMEs is tailored to meet their business needs.  While the product design process is not yet completed, it is anticipated that the SBCI will provide loans that are currently not typically offered in Ireland such as loans of longer duration and loans that have built in payment holidays that encourage and enable growth of our SMEs. The SBCI will have a lower cost of funding and this cost benefit must be passed onto SMEs.

As the Deputy may be aware, loan agreements with the international funders, KfW and the European Investment Bank, have recently been signed.

In order to have the SBCI operational as quickly as possible, it will operate in a manner similar to how KfW operates in Germany, as a wholesale lender, that lends to partner lenders who will then lend directly to SMEs.  SMEs will use the on-lending institutions' resources to apply for an SBCI funded product.  The on-lending model is designed to ensure that as much of the benefit of the SBCI's low funding cost is passed onto SMEs.  This also means avoiding as much operational overhead as possible.

The SBCI is working with its first lending partners (on-lenders), AIB, Bank of Ireland and Bibby Financial Services to provide initial funding to the SME sector by the end of 2014.  A full roll-out will occur during January 2015 with traditional bank lenders and importantly, with new credit providers from beyond the traditional bank sector. All of this will allow for the distribution of SBCI funding to the SME sector in Ireland on a prudent basis.

Tax Collection

Questions (19)

Michael McGrath

Question:

19. Deputy Michael McGrath asked the Minister for Finance the Revenue Commissioners' position regarding the sale of a public house (details supplied) in County Cork; if the Revenue Commissioners have reached an agreement with the secured creditor involved; if the Revenue Commissioners are agreeable to the sale of the property proceeding; and if he will make a statement on the matter. [44669/14]

View answer

Written answers

I am advised by Revenue that there are on-going issues in regard to the business in question.

Revenue has confirmed to me that its representative is in discussions with the relevant parties to conclude the issues and has recently received a number of separate proposals in this regard.

 I am assured that Revenue will not delay the conclusion of the outstanding matters once the commitments made by the parties involved are honoured.

Fiscal Policy

Questions (20)

Michael McGrath

Question:

20. Deputy Michael McGrath asked the Minister for Finance if he expects Irish Water to pass the market test to be off the State’s balance sheet based on the revised structure for water charges; and if he will make a statement on the matter. [44694/14]

View answer

Written answers

In formulating the most recent proposals announced in relation to the financing of Irish Water and water charges, the Government has sought to ensure that Irish Water will pass the 'Market Corporation Test'.

The charging and financing structure announced on the 19th of November is based on the most up to date forecasts of Revenue, Sales and Expenditure for Irish Water and provide firstly, that the majority of production costs will be met from sales and secondly, that the majority of the Utilities revenue will come from private sources. These are the two key components of the Market Corporation Test (MCT).

As the Deputy is aware, the MCT is undertaken by the CSO and is subject to a final decision by Eurostat.  The Department of the Environment, Community and Local Government will provide all relevant details to the Central Statistics Office (CSO) for consideration as part of this process. A submission will subsequently be made by the CSO to EUROSTAT regarding the classification of Irish Water. It is expected that a decision will be made by the time of the next EDP reporting date (end March 2015).

Fiscal Policy

Questions (21)

Michael McGrath

Question:

21. Deputy Michael McGrath asked the Minister for Finance the overall impact on the public finances in terms of gross and net revenue from domestic water charges in 2015; and if he will make a statement on the matter. [44695/14]

View answer

Written answers

In formulating the most recent proposals announced in relation to the financing of Irish Water and water charges, the Government has sought to ensure that Irish Water will pass the 'Market Corporation Test'.

Irish Water will introduce water charges for domestic customers to fund expenditure on the treatment and provision of water services. The monies raised by water charges will be received by Irish Water, which is not part of general government. As such, these receipts do not count as general government revenue and accordingly will not impact on the deficit.  For information, these charges will be capped at €160 for a single adult household and €260 for all other households. 

As the Deputy will be aware, yesterday the Government announced that a conservation grant of €100 will now be provided to eligible households.  This replaces the water related household benefits package and tax measures announced in the Budget and is estimated to cost €130m in 2015. This represents an additional €64m cost over and above what was provided for in Budget 2015 and will increase the deficit. There is also an additional cost to the public finances of €21m to offset the loss in revenue from the changed tariff and allow for funding to be provided to Local Authorities to compensate them for the reduced revenue arising from the proposed rates exemption.

Property Tax Collection

Questions (22)

Terence Flanagan

Question:

22. Deputy Terence Flanagan asked the Minister for Finance the reason a surcharge has been issued on a property tax bill in respect of a person (details supplied) in Dublin 3; and if he will make a statement on the matter. [44699/14]

View answer

Written answers

I am advised by Revenue that Section 38 of the Finance (Local Property Tax) Act 2012 (as amended) provides for the application of a 10% Income Tax (IT) or Corporation Tax (CT) surcharge in circumstances where there are outstanding Local Property Tax (LPT) Returns or payments on the relevant (IT/CT) filing dates. Where a liable person files an LPT Return and pays the tax due or enters into a payment arrangement after the IT/CT filing date, the surcharge is capped at the actual amount of LPT that is due. If the original surcharge is lower than the LPT liability then the amount remains unchanged.

With regard to the specific case to which the Deputy refers, the person in question filed LPT Returns for her properties in April 2103, one of which has since been sold. The person subsequently notified Revenue in respect of an under-valuation in respect of one of her apartments in April 2013 and requested that the valuation be increased from Band 2 to Band 3. The person has already made direct contact with Revenue in regard to the imposition of the surcharge and on examination of the case it was discovered that a charge had arisen in respect of a duplicate property.

On the basis that the additional liability has already been paid by the person, Revenue is willing to waive the surcharge on this occasion. A member of the LPT team will make direct contact with the person to confirm that the charge has been removed and is no longer due.

Mortgage Book Sales

Questions (23)

Martin Heydon

Question:

23. Deputy Martin Heydon asked the Minister for Finance if consideration is being given to a proposal to allow the owners of mortgaged properties bid for the sale of their distressed mortgage at a lower value when the sale of these mortgages is being considered; and if he will make a statement on the matter. [44716/14]

View answer

Written answers

The sale of mortgage books is a commercial matter for the entities concerned and neither the Central Bank nor the Department of Finance has a statutory function in relation to these decisions. Relationship Frameworks are in place with the State owned banks which provide that the State will not intervene in the day-to-day operations of the banks or their management decisions. These frameworks are required to ensure that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as an asset for the State.

In the case of IBRC (in Special Liquidation), the decision to sell the mortgage loans by way of portfolio sales was arrived at by the Special Liquidators having taken independent advice that the most efficient method of disposal and the one most likely to maximise sales was to sell the loans as part of a larger portfolio. It is important to note that the Special Liquidators are obligated by the conditions set out under the IBRC Act 2013 to ensure that the assets are sold at a price which maximises the overall return for its creditors including the State. Although I can understand that many mortgage owners might be interested in buying their loans, the time, cost and practicalities of this would make this option more costly.  The Government is not in a position to interfere with these decisions as to do so would leave the State open to challenge from other creditors of IBRC where it may be argued that decisions were taken for the benefit of one creditor over another.

Departmental Staff Data

Questions (24)

Barry Cowen

Question:

24. Deputy Barry Cowen asked the Minister for Finance if he will provide in tabular form, the number of staff in his data protection office; if he has a specified data protection officer; and if he will make a statement on the matter. [44727/14]

View answer

Written answers

The Department does not have a specific office for data protection but has nominated an official who deals with the application of the Data Protection Act within the Department.

Haddington Road Agreement Implementation

Questions (25)

Finian McGrath

Question:

25. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform the position regarding the Haddington Road agreement and career breaks (details supplied); and if he will make a statement on the matter. [44593/14]

View answer

Written answers

The career break scheme provides flexibility for staff by allowing staff to apply to take a period of special leave without pay. The details of the scheme are set out in Circular 4 of 2013.

The Haddington Road Agreement has not changed the operation of the Civil Service career break scheme. It is a voluntary scheme and staff are aware that, under the rules of the scheme, there is no guarantee they will be able to return to the specific post they vacated before taking a career break.

The scheme sets out that the return to work is subject to there being an appropriate vacancy in the employing organisation.  In this context, civil service departments and offices are not required to facilitate a return to work for up to 12 months after the end date of the career break.  Individuals are required to sign a form of undertaking noting this fact, and their obligations around informing the HR Manager of their return to work, prior to commencing the career break.  If the organisation is aware that it is unlikely a vacancy will arise, the onus is on the organisation to ensure the person is put on the PAS redeployment panel and inform the individual of this and the fact that s/he will be circulated with redeployment vacancies. If it is not possible to make a reasonable offer within the 12-month period after the expiry of the career break, the possibility of facilitating the civil servant on a supernumerary basis must be explored.

Where the civil servant refuses a reasonable offer of work, the Department is under no further obligation to provide employment and can deem a refusal to be a resignation.

A copy of the Circular can be found at: http://circulars.gov.ie/pdf/circular/per/2013/04.pdf.

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