Written Answers Nos. 111-129
112. Deputy Michael McGrath asked the Tánaiste and Minister for Social Protection if she will provide in tabular form details of all loans received by the Social Insurance Fund in each year from 2011 to 2014; and if she will make a statement on the matter. [1738/15]
View answerSection 18 of the Social Welfare and Pensions Act 2012 made provision for the Social Insurance Fund (SIF) to borrow monies directly from the Exchequer Central Fund via the Pay Master General (PMG) for temporary cashflow purposes given the timing differences between SIF related expenditure, which is evenly spread throughout each month, while the bulk of PRSI income is received in the latter days of each month.
The following table sets out the details of all loans advanced by the Central Fund to the SIF for the years 2012 to 2014. All loans were repaid in full within one month of their receipt.
SIF Central Fund Loan 2012-2014
|
Month |
Bal b/f |
Loans Received |
Total Paid Back |
Bal c/f |
|
Dec-12 |
€0 |
(€300,000,000) |
€300,000,000 |
€0 |
|
Dec-13 |
€0 |
(€300,000,000) |
€285,000,000 |
(€15,000,000) |
|
Jan-14 |
(€15,000,000) |
(€500,000,000) |
€15,000,000 |
(€500,000,000) |
|
Feb-14 |
(€500,000,000) |
(€300,000,000) |
€800,000,000 |
€0 |
|
Mar-14 |
€0 |
(€350,000,000) |
€350,000,000 |
€0 |
|
Apr-14 |
€0 |
(€350,000,000) |
€343,000,000 |
(€7,000,000) |
|
May-14 |
(€7,000,000) |
(€350,000,000) |
€357,000,000 |
€0 |
|
Jun-14 |
€0 |
(€350,000,000) |
€350,000,000 |
€0 |
|
Jul-14 |
€0 |
(€400,000,000) |
€352,000,000 |
(€48,000,000) |
|
Aug-14 |
(€48,000,000) |
(€300,000,000) |
€348,000,000 |
€0 |
|
Sep-14 |
€0 |
(€300,000,000) |
€300,000,000 |
€0 |
|
Oct-14 |
€0 |
(€250,000,000) |
€250,000,000 |
€0 |
|
Nov-14 |
€0 |
(€150,000,000) |
€150,000,000 |
€0 |
|
Dec-14 |
€0 |
(€400,000,000) |
€400,000,000 |
€0 |
114. Deputy Brendan Smith asked the Tánaiste and Minister for Social Protection if she will reverse the decision to close the social welfare branch office in Clones, County Monaghan; if her attention has been drawn to the serious concerns of the local community regarding the difficulties that such a closure would cause to persons in Clones and its catchment area; if her attention has been drawn to the fact that the closure of the Clones office would necessitate persons having to travel long distances to the nearest social welfare offices in Monaghan, Castleblayney or Cavan and would cause additional financial pressures for many persons transacting business with her Department; if she will provide an assurance that this decision will be reviewed with a view to retaining the branch office in Clones; and if she will make a statement on the matter. [1761/15]
View answerFollowing the notification of the decision of the Clones Branch Office Manager to retire on 6February 2015 a review of the delivery of the Department’s services in North County Monaghan was carried out. Over the last number of years the Department has developed a new integrated income support, employment and support service called ‘Intreo’, and has been transforming its nationwide network of Local Offices into ‘Intreo Centres’. The Intreo Centre is a one-stop shop for all income and employment support services where customers can access job-seeking advice, information on vacancies and income support services all in the one place. The local Intreo Centre provides expert help and advice on employment, training and personal development opportunities with a focus on customer needs to help them enter the workforce. Self-service kiosks are available to provide information and case officers offer advice and guidance on employment and training opportunities. The individualised supports which are available to jobseekers assist them in getting back to work and increasing their employability. There are a number of key elements which make up the Intreo service including:
- Integrated reception providing a one-stop shop incorporating all strands of the Department’s income support and employment services.
- Provision of information and access to income supports, including jobseekers' payments, back to work and back to education payments, one-parent family payments and community welfare services. Integrated decision-making process leading to quicker payment decisions.
- Intreo has introduced a new approach to engagement with people who are unemployed. It transforms the nature and level of engagement between employment services and people on the Live Register with the objective of helping people on the pathway back to employment. The aim is that the first day a client enters an Intreo Centre and engages with the service, that day is the start of the journey back to work.
Currently these new Intreo services are not provided to our customers in County Monaghan and following the review mentioned above the Department has decided that these enhanced services can best be provided by utilising the capacity of Branch Offices in Monaghan Town, Castleblayney, and the Intreo Centre in Cavan Town. The Department is confident that by adopting this approach we can better serve the needs of our customers by providing the broad range of Intreo services much sooner than would otherwise be the case.
To ensure a smooth transition, and to minimise disruption to our customers, each customer has been assigned to the next closest DSP service in accordance with their geographic location. They have therefore been aligned with Branch Offices in Monaghan Town, Castleblayney, or the DSP Intreo Centre in Cavan. This re-configuration will provide customers with access to enhanced activation services and those attending Cavan Town will benefit immediately. Customers attending the Monaghan Town Branch Office will also benefit from the proposed participation of that office in Intreo trials during 2015.
Customers who reside more than 16 kilometres from their assigned Branch Office/Intreo Centre may avail of postal signing arrangement whereby they sign a postal declaration two months out of three and sign in the Branch/Intreo Office on the third month. The Department is communicating in writing to each customer regarding the operational changes detailing their new DSP access point and signing arrangements. Customers will be informed that there will be no changes to current payment arrangements.
Department services such as Social Welfare Inspector, Designated Officer (former Community Welfare Officer) and Local Employment Services will not be affected by this change and will continue to be provided in Clones for customers and the general public as normal.
The Department’s operations are reviewed on an ongoing basis with a view to ensuring our services meet customer needs in as efficient a manner as possible.
115. Deputy Brendan Smith asked the Tánaiste and Minister for Social Protection if she will provide in tabular form the number of EU directives which remain to be implemented within her Department; the name of these directives; the timeframe for the implementation of these directives; and if she will make a statement on the matter. [1799/15]
View answerThe Department is, at present, responsible for the transposition of one EU Directive as outlined below. While Ireland is already substantially compliant with the minimum requirements provided for in this Directive, the Department will amend any law, regulation or administrative provision required should it be necessary to give it full effect.
|
Directive No |
Title |
Date for Transposition |
|
2014/50/EU |
Directive of the European Parliament and of the Council on minimum requirements for enhancing worker mobility between Member States by improving the acquisition and preservation of supplementary pension rights. |
21st March 2018 |
116. Deputy Micheál Martin asked the Tánaiste and Minister for Social Protection if she will provide in tabular form the number, name and date of Bills initiated in her Department that have been subject to the pre-legislative scrutiny procedure in the Oireachtas. [1820/15]
View answerThe Government approved an expansion and reinforcement of the arrangements for pre-legislative scrutiny in September 2013. A number of new Standing Orders were adopted by the Dáil on 17 October 2013 in order to underpin these new arrangements and these Standing Orders came into effect on 5 November 2013.
In order to clarify the operation of these new Standing Orders, an Agreed Protocol for Pre-Legislative Scrutiny of the Heads of Bills by Oireachtas Committees was published in September 2014. This Agreed Protocol provides that certain Bills are exempted from the requirements for pre-legislative scrutiny, including Bills which are required to implement Budget changes such as the Finance Bill and the Social Welfare Bill, “emergency” Bills and Bills that were at an advanced stage of drafting at the time the Standing Orders were adopted.
The Heads of the Gender Recognition Bill were referred to the Joint Oireachtas Committee on Education and Social Protection for pre-legislative scrutiny in July 2013 and, following consideration of these Heads of Bill, the Joint Committee issued its report on 16 January 2014.
A number of other Bills which I have initiated since September 2013 fall into the categories of Bills exempted under the Agreed Protocol from the requirements for pre-legislative scrutiny, for example, the Social Welfare Bills enacting amendments arising from Budgets 2014 and 2015 and the Civil Registration (Amendment) Bill 2014 which was at an advanced stage of drafting at the time the Standing Orders came into effect.
The details requested by the Deputy are set out in the following table.
Bills Initiated by Minister for Social Protection which have received Pre-Legislative Scrutiny
|
Title of Bill |
Date Heads of Bill referred to Committee for Pre-Legislative Scrutiny |
Date of Initiation of Bill |
Status |
|
Gender Recognition Bill 2014 (No. 116 of 2014) |
July 2013 |
17th December 2014 |
Scheduled for Second Stage in the Seanad on 21st January 2015 |
117. Deputy Micheál Martin asked the Tánaiste and Minister for Social Protection if she will provide in tabular form the number, name and date of Bills initiated in her Department since September 2013. [1835/15]
View answerI have initiated six Bills since September 2013, five of which have been enacted. The details requested by the Deputy are set out in the following table.
Bills Initiated by Minister for Social Protection since September 2013
|
Title of Bill as initiated |
Date Initiated |
Status |
|
Social Welfare and Pensions Bill 2013 (No. 101 of 2013) |
21th October 2013 |
Social Welfare and Pensions Act 2013 (No. 38 of 2013) Enacted on 9th November 2013 |
|
Social Welfare and Pensions (No.2) Bill 2013 (No. 114 of 2013) |
20th November 2013 |
Title changed to Social Welfare and Pensions (No. 2) Act 2013 (No. 49 of 2013) Enacted on 25th December 2013 |
|
Social Welfare and Pensions Bill 2014 (No. 47 of 2014) |
28th May 2014 |
Social Welfare and Pensions Act 2014 (No. 16 of 2014) Enacted on 17th July 2014 |
|
Civil Registration (Amendment) Bill 2014 (No. 71 of 2014) |
8th July 2014 |
Civil Registration (Amendment) Act 2014 (No. 34 of 2014) Enacted on 4th December 2014 |
|
Social Welfare Bill 2014 (No. 97 of 2014) |
21th October 2014 |
Title changed to Social Welfare and Pensions (No. 2) Act 2014 (No. 41 of 2014) Enacted on 25th December 2014 |
|
Gender Recognition Bill 2014 (No. 116 of 2014) |
17th December 2014 |
Scheduled for Second Stage in the Seanad on 21st January 2015 |
118. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection to set out the number of secondments from her Department to external private firms in 2010 to 2014, inclusive, and to date in 2015; the firms involved; and if she will make a statement on the matter. [1849/15]
View answer119. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection to set out the number of secondments based in her Department from external private firms in 2010 to 2014, inclusive, and to date in 2015; the firms involved; and if she will make a statement on the matter. [1863/15]
View answer120. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection if her Department has a policy regarding secondments from and within her Department to external firms; when the policy was initiated and last updated; and to outline the details of the policy. [1877/15]
View answerI propose to take Questions Nos. 118 to 120, inclusive, together.
The Department of Public Expenditure and Reform circular 3/2013 governs the staff exchange scheme between the civil service and the private sector.
I can confirm that there have been no secondments into the Department from any external private firm or any secondment from the Department to an external private firm in the years 2010, 2011, 2012, 2013, 2014 and to date in 2015.
121. Deputy Clare Daly asked the Minister for Finance if water bills will be subject to VAT. [49611/14]
View answerThe supply of water by local authorities and Irish Water is exempt from VAT. This VAT exemptions applies to all supplies of water, including supplies to domestic households, businesses and others. Ireland's long standing VAT exemption for the supply of water is currently contained in paragraph 14(2) of Schedule 1 to the VAT Consolidation Act 2010. The exemption is based on a derogation from EU VAT law contained in Article 371 and Annex X of the EU VAT Directive.
122. Deputy Thomas P. Broughan asked the Minister for Finance to provide details on the beneficiary companies and the cost in tax expenditure of the operation of the tonnage tax in each year since 2011. [49741/14]
View answerI am informed by the Revenue Commissioners that Corporation Tax returns for the years 2011 and 2012, the latest full year available, indicate that the number of companies that returned profits under the tonnage tax regime was 38 and 39 respectively. As regards the names of the companies , the Revenue Commissioners' obligation to observe confidentiality for taxpayers precludes them from giving this information.
It is not possible to estimate the cost of the tonnage tax regime as the Corporation Tax returns are not structured in such a way to show the profits that would have been liable under the general corporation tax system for these companies. This would be necessary for the computation of the cost. However, as the companies concerned would be likely to avail of similar regimes in many other European countries in the absence of a tonnage tax regime here, any cost could only be considered a notional cost.
123. Deputy Róisín Shortall asked the Minister for Finance if he will provide a copy of the full local property tax and household charge payment history in respect of a person (details supplied) in Dublin 11; and the reason for the arrears owed by this person. [49765/14]
View answerI am advised by Revenue that the person to whom the Deputy refers is paid up to date in respect of her Local Property Tax (LPT) and Household Charge (HHC) liabilities.
However, due to a technical error, a refund of LPT amounting to €38.08 in respect of the 2014 liability was incorrectly generated and sent to her on 6 December 2014, which has unfortunately created an 'underpayment' of that amount.
The LPT team has tried to make direct telephone contact with the person to apologise and rectify the error but has not yet been able to reach her. The team has however written to her and provided a direct dial telephone contact as well as a list of the LPT/HHC payments that she has made to date.
Once contact is made, Revenue has assured me that the issue referred to above will be resolved in whatever way best suits the person.
124. Deputy Michael Healy-Rae asked the Minister for Finance if he will ease the burden of the property tax levy (details supplied) by putting a ceiling on it for several years; and if he will make a statement on the matter. [1047/15]
View answerAs the Local Property Tax is a new tax, the Government wished to provide certainty to homeowners and for this reason valuation periods of three years were introduced (with the exception of the first valuation period which covers three and a half years). In addition to providing certainty, it also eases the administration burden on the homeowner by not having to revalue their houses each year.
The regular revaluation periods ensure that the property register is maintained with accurate and up to date information to assist in evaluating the operation of LPT, as well as bringing newly built properties within the scope of LPT. The Deputies may be aware that under the LPT legislation, where a property is not a "relevant residential property" on a valuation date (i.e. not liable to LPT), with certain exceptions, that property will not be a relevant residential property until the next valuation date. In the interests of equitable treatment of compliant LPT payers, it is important to have regular valuation dates so that newly built properties are brought into the LPT net. It also provides certainty to those homeowners as to when they will become liable to LPT.
The initial valuation of a property on 1 May 2013, assuming it was made in good faith, is valid from 1 May 2013 to 31 October 2016, and will not be affected by any increase or decrease in property prices or other changes, including repairs or improvements made, during this period. I also committed not to amend the central national rate of LPT for the lifetime of the Government.
While I am very conscious of the concerns of homeowners over increasing property prices and the effects this will have on their LPT liabilities, particularly in urban areas, the next valuation date is not until 1 November 2016. In advance of that date, in conjunction with my officials, I will be examining the LPT and impacts on LPT liabilities due to increasing property prices.
125. Deputy Seán Kenny asked the Minister for Finance to forecast the amount of revenue that would be generated if a 5% tax rate was applied on all lotto winnings in excess of €750,000; and if he will make a statement on the matter. [1384/15]
View answerI am advised by the National Lottery that the total value of prizes over €750,000 won by players in 2014 amounted to €184.8m. This includes euromillions prizes of €101.7m. Based on 2014 figures, assuming the tax only applies to the excess winnings over €750,000, a tax of 5% on National Lottery winnings over €750,000 would yield €8,313,828.
The introduction of such a tax could have a significant detrimental impact on sales of National Lottery games and on the profits of Premier Lotteries Ireland as licensee. The introduction of such a tax was not referred to in the Licence competition and PLI bid for the licence on that basis.
Section 41 of the National Lottery Act 2013 provides that moneys paid into the Central Fund pursuant to section 44 shall be applied for the purposes of such one or more of the following, and in such amounts, as the Government may determine from time to time:
(a) sport and recreation;
(b) national culture and heritage (including the Irish language);
(c) the arts (within the meaning of the Arts Act 2003);
(d) health of the community;
(e) youth, welfare and amenities;
(f) natural environment;
(g) such other objectives (if any) as the Government may determine from time to time.
A taxation on winnings could be expected to have a behavioural effect on participation and reduce the surplus available for these purposes. National Lottery winnings are currently exempted from Income Tax, Capital Gains Tax and Capital Acquisitions Tax. I do not propose at this time to introduce a tax such as is suggested by the Deputy.
126. Deputy Seamus Kirk asked the Minister for Finance if his Department has endeavoured to quantify the benefit to the economy of the reduction in cost of Brent crude oil; and if he will provide figures for same. [49434/14]
View answerThe price of brent crude oil has fallen by about 45 per cent in euro terms (nearly 50 per cent in US dollar terms) since the end of September, when the macroeconomic projections that underpin Budget 2015 were finalised. For the most part this is a positive development, and will likely have a favourable impact on real economic activity in Ireland.
Ireland is a net energy importer and, as such, falls in oil prices have a positive impact in the short term. Lower energy prices reduce firms' input costs thereby improving profitability and competitiveness. At the household level, lower energy prices are likely to lead to an increase in real disposable incomes, which can be used to reduce indebtedness or increase consumption on other goods and services.
In terms of quantifying the impact, a reasonable rule of thumb is that, everything else being equal, each sustained €10 per barrel reduction in the price of oil boosts the level of real GDP by somewhere in the region 0.1 - 0.2 percentage points.
The decline in oil prices will also reduce inflation. At the level of the euro area, the latest figures show that inflation moved into negative territory in December for the first time since 2009. Falling oil prices will further weigh on inflation in the short-term. If expectations of falling prices were to become entrenched, the negative impact on the euro area economy could potentially be severe.
127. Deputy Sandra McLellan asked the Minister for Finance if there is a time limit on how far back the Revenue Commissioners can go with investigations to claim unpaid tax; and if he will make a statement on the matter. [49435/14]
View answerI am informed by the Revenue Commissioners that, since 2005, Revenue officers are ordinarily limited to carrying out enquiries and making or amending assessments within a period of 4 years from the end of the year in which a taxpayer filed a correct tax return or a correct amended return.
However, that 4 year time limit does not apply, and Revenue can accordingly carry out an audit or investigation for any period, where:
1. A Revenue officer has reasonable grounds for believing that a return of income is incorrect due to its having been completed in a fraudulent or negligent manner,
2. A Return has not been filed,
3. A Revenue officer is not satisfied with the sufficiency of a return, having regard to any information received in that regard,
4. A Revenue officer has reasonable grounds for believing that a return does not contain a full and true disclosure of all material facts, or
5. A case involves a tax avoidance transaction to which the provisions of section 811 or section 811C of the Taxes Consolidation Act 1997 apply.
A taxpayer who is aggrieved by any assessment made or amended by a Revenue officer outside the 4 year time limit has a right of appeal to the Appeal Commissioners.
The general 4 year time limit within which Revenue may ordinarily examine returns made by compliant taxpayers is matched by a 4 year time limit within which taxpayers may claim a repayment of tax. This scheme of 4 year time limits was designed to achieve the necessary balance between establishing a fair and uniform system for compliant taxpayers, including equality of treatment between PAYE and self-employed taxpayers, while at the same time providing the necessary protection for the Exchequer both from exposure to repayment claims for historic periods and providing the Revenue Commissioners with the authority to pursue liabilities for these historic periods where a taxpayer had not filed a tax return, had filed an incorrect return or had engaged in tax avoidance transactions which could be challenged under the general anti-avoidance rule.
128. Deputy Eoghan Murphy asked the Minister for Finance further to Parliamentary Question No. 65 of 11 December 2014 and incorporating the taxation model outlined in that question if he will provide comparisons of the tax liabilities for individual PAYE workers between the current system, as per budget 2015, and the proposed model, for the following incomes: €20,000, €30,000, €35,000, €45,000, €55,000, €70,000, €75,000, €100,000 and €150,000. [49451/14]
View answerThe distributional analysis requested by the Deputy is set out in the following table.
Single Person, private sector employee taxed under PAYE. Full rate PRSI contributor
|
|
Income Tax |
USC |
PRSI |
Net Income |
Difference |
||||
|
Gross Income |
Current (2015) |
Proposed |
Current |
Proposed |
Current |
Proposed |
Current |
Proposed |
|
|
|
€ |
€ |
€ |
€ |
€ |
€ |
€ |
€ |
€ |
|
20,000 |
700 |
1,400 |
545 |
0 |
800 |
800 |
17,955 |
17,800 |
-155 |
|
30,000 |
2,700 |
4,200 |
1,245 |
0 |
1,200 |
1,200 |
24,855 |
24,600 |
-255 |
|
35,000 |
3,940 |
5,600 |
1,595 |
0 |
1,400 |
1,400 |
28,065 |
28,000 |
-65 |
|
45,000 |
7,940 |
8,400 |
2,295 |
0 |
1,800 |
1,800 |
32,965 |
34,800 |
1,835 |
|
55,000 |
11,940 |
12,200 |
2,995 |
0 |
2,200 |
2,200 |
37,865 |
40,600 |
2,735 |
|
70,000 |
17,940 |
19,400 |
4,045 |
0 |
2,800 |
2,800 |
45,215 |
47,800 |
2,585 |
|
75,000 |
19,940 |
21,800 |
4,444 |
0 |
3,000 |
3,000 |
47,616 |
50,200 |
2,584 |
|
100,000 |
29,940 |
33,800 |
6,444 |
0 |
4,000 |
4,000 |
59,616 |
62,200 |
2,584 |
|
150,000 |
49,940 |
57,800 |
10,444 |
0 |
6,000 |
6,000 |
83,616 |
86,200 |
2,584 |
As can be readily seen from the table, if implemented, the proposal would have a negative effect on those earning €35,000 or less around 60% of all income earners. The table illustrates the effect of the proposal in the case of a single individual assessed under the PAYE system. As it is assumed in costing the proposal that all current tax credits and allowances are abolished, this effect would be amplified and extended in the case of married one earner couples. Furthermore, the very large benefits accruing to the better off under this proposal would undermine the progressivity that is inherent in the current income tax system.
As the Deputy will be aware, the Government is committed to reducing the marginal tax rate on low and middle-income earners, over a series of budgets, in a manner that maintains the highly progressive nature of the Irish tax system.
129. Deputy Colm Keaveney asked the Minister for Finance to outline the assessment he has made of the risk that deflation may pose to the economy and if he is seeking to take action to counteract it; his views on whether deflation is of benefit to consumers; and if he will make a statement on the matter. [49458/14]
View answerInflation, as measured by annual changes in the Harmonised Index of Consumer Prices (HICP), has averaged 0.4 per cent in the first eleven months of 2014. As such, we continue to operate in a low inflation environment.
Headline inflation is being pushed down, among other things, by the significant declines in oil prices in recent months. Brent crude oil has fallen by nearly 50 per cent in euro terms (by over 55 per cent in US dollar terms) since June 2014. In this context, core inflation which excludes energy and unprocessed food prices has averaged 0.8 per cent in the first eleven months of 2014.
In terms of the impact, a distinction must be drawn between short and medium-term effects. In the short-term, low inflation or even falling prices helps protect real incomes and boost competitiveness. However, a prolonged period of low inflation or falling prices is problematic for a number of reasons. Firstly, the expectation of lower price levels in the future leads households and firms to postpone personal consumption and investment, therefore reducing aggregate demand. Secondly, it pushes up the real interest rate, which increases the real cost of borrowing. Thirdly, low inflation or deflation increases the real burden of debt.
In terms of addressing the risk of low inflation, the appropriate approach is to ensure solid economic growth. This is what the Government is doing by putting the public finances on a stable path and ensuring a banking sector capable of providing credit to support the real economy. It is also important to note that deflationary trends were highlighted as an economic risk in Budget 2015 and continue to be monitored in this regard.
