Written Answers Nos. 81-87
81. Deputy Michael McGrath asked the Minister for Finance if his Department has made an estimate of the tax expenditure associated with the two year capital gains tax exemption on property investment which will expire on 31 December 2014 in view of the increases in commercial and residential property prices over the past 18 months; and if he will make a statement on the matter. [47691/14]
View answerThe capital gains tax relief introduced by Section 604A of the Taxes Consolidation Act 1997 (enacted in Finance Act 2012 and extended by Finance (No 2) Act 2013) with effect from 7 December 2011 to 31 December 2014 will have no cost, in terms of capital gains tax forgone, for a period of seven years from the time any properties to which the relief applies were acquired. Any such properties sold within seven years of being acquired will not qualify for the relief.
Disposals made after the seven year period of ownership will be subject to capital gains tax on any gain but effectively at a reduced rate by reference to the fraction that 7 years bears to the overall period of ownership. It is not possible at this time to estimate when such properties will be disposed of in the future or the amount of chargeable capital gain, if any, that may arise on such disposals. Accordingly, it is not possible to estimate what the cost will be in the future in terms of capital gains tax forgone.
82. Deputy Michael McGrath asked the Minister for Finance the legal restrictions which will apply to non-State operated mortgage to rent schemes; if his Department’s approval is required for such a scheme; and if he will make a statement on the matter. [47692/14]
View answerThe approval of the Department of Finance is not required in order to introduce a Mortgage to Rent Scheme (MTR). All MTR operators are bound by the existing Mortgage to Rent Scheme, which was introduced by the Minister for the Environment, Community and Local Government, in response to a recommendation in the Keane Report of 2011.
The Housing Agency, which administers the MTR scheme, has informed me that it is not aware of any legal restrictions on MTR operators, other than that the State cannot compel any operator, either those operating within Ireland or outside it, to offer MTR.
83. Deputy Derek Nolan asked the Minister for Public Expenditure and Reform if he will allow for amendments to the upcoming valuation Bill that will abolish commercial rates for community and not-for-profit early childhood care and education services; and if he will make a statement on the matter. [47560/14]
View answerThe Valuation (Amendment)(N0.2) Bill 2012 was passed by the Seanad on 20th November 2014 and includes a Government amendment, accepted at Report Stage, to insert into Schedule 4 of the Valuation Act 2001 an exemption from rates for properties occupied by parties that provide early childhood care and education on a not-for-profit basis. I intend that the Bill will be considered by the Dáil shortly.
84. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform his plans to lay out a plan for the unwinding of the public service pension deduction over time; and if he will make a statement on the matter. [47502/14]
View answerThe Deputy will be aware that the Pension-Related Deduction (PRD) is an important component of the Financial Emergency Measures in the Public Interest Acts (FEMPI). Since it was introduced in March 2009 under the Financial Emergency Measures in the Public Interest Act 2009, the PRD has reduced the public sector pay bill by an estimated €5.5 billion. In 2014 the PRD reduced the cost of the public service pay bill by an estimated 6.1%.
The nature of the Financial Emergency Measures legislation is that the powers granted by the Oireachtas under the legislation are temporary in nature and are predicated on the continuing financial emergency in the State. As provided for under section 12 of the FEMPI Act 2013, I am required to review annually the Acts, and a written report of my findings is laid before each House of the Oireachtas. My last review was laid before the Houses of the Oireachtas on 29 June 2014. In that review I concluded that there is a need to continue to apply the PRD to meet the required public expenditure targets. It is worth restating that the expenditure proposals as set out in Budget 2015 are based, in part, on the revenue accruing from the PRD.
However, it should be noted that a start has already been made in ameliorating the impact of PRD on public servants. As legislated for in the Financial Emergency Measures in the Public Interest Act 2013, and as provided for in the Haddington Road Agreement, the rate of PRD on the €15,000 to €20,000 band of pay received in a year fell from 5% to 2.5% on 1 January 2014. This cut is worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost.
As the country moves, thankfully, into a more normal economic environment, a change we can already see is underway, I believe it is important that I as Minister for Public Expenditure and Reform give consideration as to how, over the medium term, pay policy needs to develop in the public service to ensure that overall fiscal targets will be met. When my consideration is more advanced, I will of course bring proposals to Government in the first instance. Any proposals to amend the FEMPI Acts will require primary legislation to be brought before the Oireachtas.
85. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform the position regarding Civil Service recruitment (details supplied); and if he will make a statement on the matter. [47510/14]
View answerThere is no prohibition on civil or public servants who have retired under normal circumstances on applying for a publicly advertised public service post for which they are suitably qualified. However, restrictions on further public service appointments apply to staff who opted for early retirement under the Incentivised Scheme for Early Retirement (ISER) as set out in Department of Finance Circular 12/09 (applying to Civil Service) and the Department of Health Circular 7/2010 of 1 November 2010 (applying to the Health Service Executive).
From time to time, retired civil servants are engaged by Departments for specific tasks or assignments. Such engagements are normally remunerated on a fee basis and provision exists for fees to be abated, where appropriate, by reference to pension payments.
It is obviously important for all public bodies to ensure that appropriate mechanisms are in place to ensure that appropriate knowledge transfer takes place in advance of the retirement of key personnel at all levels in such organisations.
86. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform the position regarding apprenticeships (details supplied) under the aegis of his Department; and if he will make a statement on the matter. [47511/14]
View answerIn response to the Deputy's question I can confirm that the Office of Public Works has recently introduced an apprenticeship training programme the first major intake in over 10 years. A total of 21 apprentices carpenters/Stonemasons/Stonecutters) commenced their training on 22 September. The programme involves seven modules over four years, in conjunction with SOLAS, the new Further Education and Training Authority.
With the exception of the Office of Public Works, there are no apprenticeship schemes under the remit of my Department as requirements for such services are provided directly by the Office of Public Works.
87. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform the total amount of funding approved by his Department through the Office of Public Works for works arising out of the storms that occurred between 13 December 2013 and 6 January 2014; the amount claimed to date by local authorities; the amount expended to date by his Department; if any unspent balances for work not completed will be carried over into 2015 to enable the local authorities complete the works; and if he will make a statement on the matter. [47601/14]
View answerThe Government decided on 11 February 2014 to allocate up to €69.5 million for repair and remediation of public infrastructure that was damaged by severe weather in the period 13 December 2013 to 6 January 2014.
Of the figure of €69.5 million, up to €19.6 million was allocated for repair by local authorities of existing built coastal protection and flood defences in the affected areas, based on estimates submitted by them to the Department of the Environment, Community and Local Government. This funding is being made available to the local authorities through the OPW on the basis of approved programmes of works. The commencement and progression of the works is a matter for the local authorities.
To date, the local authorities have requested draw downs totalling €6.9 million. OPW has paid €2.7 million of this amount to the local authorities to date and the remaining €4.2 million is expected to be paid by the end of the year. It will be open to the local authorities to submit draw down claims in 2015 for the balances on their overall allocations.
Of the €69.5m allocated in the Government decision of 11 February 2014, a sum of €1.2 million, separate to the €19.6m for local authorities, was allocated for repair of flood defence and coastal protection infrastructure that is owned and maintained by the Office of Public Works. It is expected that this allocation will be expended in full in 2014.
