Finian McGrath
Question:201. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection if she will support a matter (details supplied) regarding rent increases; and if she will make a statement on the matter. [6024/15]
View answerRent Supplement Scheme Payments
Questions (201)
Written answers
The Rents Unit which administers the claim for rent supplement for the person concerned received a letter from him on 4 February 2015, which stated that his rent has increased from €880.00 per calendar month to €1280.00 per calendar month. This rent is above the maximum rent rate of €950.00 per calendar month for his family circumstance. The person concerned has been advised to contact the National Housing Charity, Threshold, under the Interim Tenancy Sustainment Protocol (ITSP). The purpose of the ITSP, which involves this Department, the 4 Dublin Local Authorities and Threshold, is to ensure a speedy intervention preventing families who are in receipt of rent supplement from losing their tenancies and becoming homeless.
Following his engagement with Threshold, it will submit a recommendation to this Department regarding the rent supplement claim for the person concerned. This may involve a temporary uplift in the his rate of payment for a period of 13 weeks while the Local Authority and Threshold are considering alternative housing options for his family. Following this his claim would be further reviewed.
In the meantime payments of rent supplement for the person concerned will continue at the present rate pending the Department receiving contact from Threshold.
Question No. 202 answered with Question No. 185.
Employment Support Services
Questions (203)
Tom Fleming
Question:203. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection her views on a technical assessment and training to avail of an incentive scheme (details supplied); if consideration will be given to reverting to the terms of the old scheme; and if she will make a statement on the matter. [6057/15]
View answerWritten answers
A Departmental review of employment support schemes made a range of recommendations, including the need for a rationalisation of current schemes to support jobseekers. The schemes reviewed included the training employment support grant (TESG) and the technical assistance and training scheme (TATS). Further work undertaken took account of developments in the supports available to jobseekers and changes in the services offered by Solas and the newly created Education and Training Boards.
Two new schemes of supports for jobseekers have been introduced in recent months, replacing the above mentioned schemes. A new enterprise support grant has been put in place to offer specific supports to jobseekers starting their own business and who have been approved for income support under the back to work enterprise allowance scheme. A training support grant (TSG) has also been developed to support the Department’s activation objectives.
Like the former TESG, the new TSG is designed to fund quick access to short-term training where this cannot be provided by a state provider within a reasonable time or where a intervention is identified that can support individual jobseekers to access work opportunities. Like the old scheme, the TSG is not designed specifically to provide general training for jobseekers. Access to the new scheme is via the Department’s case officers who are tasked with identifying the most support intervention for jobseekers, particularly where a job opportunity has been identified.
The maximum fund available to jobseekers under the scheme is €500 p.a. TSG is designed to be a more activation focused grant than TESG. The training sought by the jobseeker must form part of the agreed personal progression or action plan to enter/re-enter the labour market.
The operational guidelines for the scheme were drawn up to ensure a consistent approach nationally and set out clearly defied criteria for eligibility. As with all new schemes, the Department will closely monitor implementation and the guidelines will be reviewed over time, if this is found to be necessary.
Employment Support Services
Questions (204)
Mary Lou McDonald
Question:204. Deputy Mary Lou McDonald asked the Tánaiste and Minister for Social Protection the specific supports available to unemployed taxi drivers who wish to return to the taxi industry. [6088/15]
View answerWritten answers
A range of supports are available to jobseekers from the Department. A jobseeker who is available for and genuinely seeking work can apply for the contribution-based jobseeker’s benefit or the means-tested jobseeker’s allowance, depending on their previous employment history. While the Department does not provide any specific supports for those wishing to join or return to the taxi industry, a jobseeker may avail of any of the following supports to aid their return to employment/self-employment:
- A person who is self-employed can apply for Jobseeker's Allowance if their income falls below a certain level. The applicant can continue in self-employment with their earnings from the business assessed to determine the level of jobseeker’s allowance that can be paid.
- The Short-Term Enterprise Allowance (STEA) gives support to people who have lost their job and want to start their own business. A person must be in receipt of jobseeker’s benefit payment to qualify and payment will cease when the entitlement to jobseekers benefit expires.
- The Back to Work Enterprise Allowance (BTWEA) scheme is available to support persons who are long-term unemployed and wish to develop or take up self-employment opportunities. The scheme allows a qualified person to retain a reducing proportion of their social protection payment, plus secondary benefits over a two year period. However, it is important to note that given the nature of the taxi industry and concerns about displacement of existing operators and viability, the likelihood of a jobseeker being approved for BTWEA to establish a taxi business in relatively low.
- A jobseeker may quality to be supported under JobsPlus, an incentive that provides cash subsidies to employers to recruit jobseekers who are longer-term unemployed.
Information on accessing schemes and supports for jobseekers is available from DSP Intreo centres with further information available on the Department’s website www.welfare.ie.
Question No. 205 withdrawn.
Community Employment Schemes Operation
Questions (206)
James Bannon
Question:206. Deputy James Bannon asked the Tánaiste and Minister for Social Protection her views on extending the length of a community employment scheme in respect of a person (details supplied); and if she will make a statement on the matter. [6114/15]
View answerWritten answers
It is the policy of the Department that a person under 55 years of age can only participate on a Community Employment (CE) scheme for a maximum of 3 years.
The person concerned commenced on the CE scheme on 12th September, 2011 and was due to finish on 5th September 2014. Her contract was extended by 11 weeks at the request of the scheme supervisor to allow her to access Level 5 FETAC training. A further request was granted in November 2014 to extend her contract by 7 weeks to allow the position to be advertised and filled.
This position has been advertised and will be filled by a suitable eligible candidate.
Officers from my Department will continue to work with the person concerned in identifying other suitable employment and training options for her.
Question No. 207 answered with Question No. 169.
Community Services Programme
Questions (208)
Ciara Conway
Question:208. Deputy Ciara Conway asked the Tánaiste and Minister for Social Protection when the community services programme will be re-opened to new applications; and if she will make a statement on the matter. [6156/15]
View answerWritten answers
The community services programme (CSP) is designed to address gaps in the delivery of key local services, to tackle disadvantage and to ensure that community facilities are utilised. It provides valuable resourcing for service delivery undertaken by not-for-profit companies and cooperatives in communities around the country. Some 2,800 people are supported in employment by the programme across approximately 400 not-for-profit companies and co-operatives. Funding of €46m has been provided for the programme in 2015 which will maintain the current level of activity.
Service providers must operate community or social enterprises that are able to deliver tangible services and are capable of generating non-public revenues from their operations by way of charging fees, sales and/or fundraising. The programme is not intended to represent full funding for any operation. Rather, funding is provided on the basis of a contribution to the cost of full-time staffing positions to support the delivery of the service and can include management and non-management elements.
Given the restrictions on resources, the Department has been unable to make an open call for new proposals to the programme for a number of years. However, from time to time and as resources allow, the Department does process new applications received from organisations that have expressed an interest in and are considered eligible under the programme. Any not-for-profit company wishing to express an interest to be considered for the programme can send an expression of interest and its proposals to the Department by email to cspinfo@welfare.ie.
Tax Forms
Questions (209)
Michael Healy-Rae
Question:209. Deputy Michael Healy-Rae asked the Minister for Finance the position regarding a P45 in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [5933/15]
View answerWritten answers
I am advised by the Revenue Commissioners that in view of the passage of time since the employment concerned, Revenue is not in a position to readily confirm any of the relevant details. However, archive records will be examined and Revenue will be in direct contact with the person concerned with the outcome of that examination as soon as possible.
Illicit Trade in Tobacco
Questions (210)
Fergus O'Dowd
Question:210. Deputy Fergus O'Dowd asked the Minister for Finance his views on a matter (details supplied) regarding the health issues and legal issues arising from the sale of illegal cigarettes in County Louth; and if he will make a statement on the matter. [6027/15]
View answerWritten answers
I am advised by the Revenue Commissioners that they are very conscious of the threat that the illegal importation of cigarettes poses to the Exchequer and to legitimate business and they have adopted a comprehensive strategy to tackle the problem throughout the country, including Co Louth. Intensified targeting, in co-operation with other law enforcement agencies on both sides of the border, of enforcement action against suspected cigarette smuggling operations has already yielded significant results.
A total of 44 cigarette seizures in County Louth in 2014 yielded 33,350,192 illicit cigarettes. Drogheda market is closely monitored and 5 of the seizures in Co Louth in 2014 were made at that market, yielding 5,360 cigarettes and 1.7 kgs of illicit tobacco.
In line with best practice in tax and customs administration worldwide, Revenue regards the development of information and intelligence as critical to the detection of evasion and smuggling, including cigarette smuggling. Revenue will maintain its approach of seizing illicit cigarettes and, where possible, prosecuting those who do not comply with the legislation in relation to the illegal importation of cigarettes. In this regard, if the Deputy has further intelligence which would be helpful, the Revenue Commissioners would welcome it.
The Commissioners appreciate the efforts made by the person (details supplied) in reporting his concerns about illicit cigarettes on sale at Drogheda market and regret that he had some difficulty in locating a contact point for his call. The Commissioners operate a confidential Freephone for Drug and Tobacco Smuggling. This dedicated telephone number (1800 295 295) is available on a 24/7 basis to members of the public who wish to pass on information or suspicions about illicit activity. This number is promoted on the homepage of the Revenue website at www.revenue.ie under Drugs and Tobacco Smuggling Hotline. It is also available in the current telephone directory where it is the first listed under "Frequently Used Numbers" in the Revenue part of the State Directory pages. In addition, a direct contact number for Revenue's anti evasion teams in the Border Midland West Region (in which Co Louth is situated) may be found on the Revenue website under the heading "Contact Details, Special Compliance District, Revenue Anti- Evasion Team North East", telephone number 042 9331606 or by email to scdnortheast@revenue.ie. I am assured by the Revenue Commissioners that calls to both the Illegal Cigarettes Hotline and the Anti Evasion Team are monitored at all times.
Mortgage Lending
Questions (211)
Eric J. Byrne
Question:211. Deputy Eric Byrne asked the Minister for Finance his views on correspondence (details supplied) regarding the Central Bank of Ireland restrictions on mortgage lending; and if he will make a statement on the matter. [6111/15]
View answerWritten answers
The Central Bank of Ireland is the authority for the formulation of macro prudential regulations in respect of regulated financial service providers. In that regard, the Central Bank has now announced the introduction of new regulations which will apply proportionate limits to mortgage lending by such institutions in the Irish market. The key objective of these regulations is to increase the resilience of the banking and household sectors to the property market and to reduce the risk of bank credit and house price spirals from developing in the future. However, it should be noted that there are some exemptions to the rules in certain circumstances. For example, the principal home loan to value (LTV) ratio restriction will not apply to a borrower in negative equity who wishes to obtain a mortgage for a new home. Additionally, in the case of principal dwelling loans, lenders can exceed the LTV threshold in respect of up to 15% of loans advanced for such purposes and can exceed the loan to income ration in respect of up to 20% of such loans. These macro prudential measures are supplementary to individual banks' credit policies and are not designed as a substitute for lenders responsibilities to assess affordability and lend prudently on a case-by-case basis.
Job Initiatives
Questions (212)
Maureen O'Sullivan
Question:212. Deputy Maureen O'Sullivan asked the Minister for Finance his views that to combat unemployment, initiatives should be taken to encourage self-employed persons and start-up business to take on further employees, for example, by a reduction in the early-stage business rates of 12.5% PRSI, as well as an overhaul of the tax system, which sees a sole trader who earns €18,000 per annum paying considerably more income tax then a person who is employed on the same salary; and his further views on possible changes that will prove beneficial to all parties and encourage employment. [6140/15]
View answerWritten answers
The Deputy will be aware that it is the Government's view that a fair, efficient and competitive income tax system is essential for economic growth and job creation.
While it is the case that some self-employed people can pay more tax than a PAYE worker on similar incomes, it is important to understand that PAYE workers and the self-employed are taxed in different ways to reflect their differing circumstances.
Employees in the PAYE system benefit from a PAYE income tax credit worth €1,650 per annum, to which the self-assessed are not entitled. The PAYE allowance, as it was then, was introduced in 1980 to improve the tax progression of PAYE taxpayers and to take account of the fact that the self-employed generally then had the advantage of paying tax on a preceding year basis. The argument was also made at the time that the general scheme of allowances for expenses discriminated against employees and in favour of other taxpayers.
There have been some changes since 1980. For example, the self-employed now pay tax on a current year basis. In addition, the PAYE allowance has become a tax credit. However, there are other aspects to how the self-assessed are taxed which can be beneficial to them. For instance, there are significant timing benefits, depending on the accounting period used by the taxpayer, which are available to the self-assessed but which are not available to PAYE workers. In addition, the expenses regime for self-assessed taxpayers remains somewhat more liberal than that afforded to employees and therefore the self-employed can actually pay less tax when compared to a PAYE worker on the same income.
It is important to note that the changes to the Income Tax system introduced in Budget 2015 will benefit all those who pay income tax and or USC equally, regardless of whether they are PAYE or self-assessed taxpayers.
As regards PRSI, I assume the Deputy is referring to the 10.75% rate of employers PRSI, which is payable once an employee's income exceeds €356 per week. I would point out that a lower rate of employer PRSI of 8.5% applies where weekly income is €356 or lower. These rates of employer social insurance contributions are very low when compared internationally.
As regards the encouragement of employment by the self-employed and start-up businesses, I would draw the Deputy's attention to the JobsPlus scheme operated by the Department of Social Protection. This scheme provides cash grants to employers where they employ an individual who is classified as being long-term unemployed. The Government has made additional funds available for this scheme for 2015.
European Central Bank
Questions (213)
Thomas P. Broughan
Question:213. Deputy Thomas P. Broughan asked the Minister for Finance if he will report to Dáil Éireann on the proposed quantitative easing operation by the European Central Bank, including the inflation rate targets and the method or risk-sharing between the European Central Bank and the Irish Central Bank; and the reason risks in the European Central Bank operation are not shared equally shared by the Irish Central Bank and other eurozone Central Banks. [5561/15]
View answerWritten answers
Inflation in the euro area has been below levels consistent with price stability for some time and, in fact, moved into negative territory in December and continued this downward trend in January. The fall in inflation combined with the fact that inflationary expectations have begun to drift downwards poses a risk to price stability.
As a result, and with policy rates effectively at zero per cent, the ECB announced an expanded asset purchase programme on January 22nd to include bonds issued by euro area central governments, agencies and European institutions. Under this expanded programme, the combined monthly purchases of public and private sector debt securities will amount to €60 billion.
These monthly purchases are intended to be carried out from March 2015 until end-September 2016 and will, in any case, be conducted until inflation moves onto a path consistent with price stability. Price stability in the euro area, in turn, has been defined as annual inflation of close to but below 2 per cent (inflation being measured by the Harmonised Index of Consumer Prices).
Decisions on and the implementation of monetary policy in the euro area are entirely a matter for the Governing Council of the ECB, which is independent in these matters. I note, however, that there is some mutualisation: the Governing Council decided that 20 per cent of the additional asset purchases under the programme will be subject to risk sharing. Moreover, the scale of the asset purchase programme is rightly seen as being the more important issue, as well as the fact that it is potentially open-ended.
Vehicle Registration Data
Questions (214)
Patrick O'Donovan
Question:214. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide details, in tabular form and by county and year, of the total number of new vehicles registered during the month of January in each of the following years, 2011, 2012, 2013 and 2014; and if he will make a statement on the matter. [5612/15]
View answerWritten answers
I am informed by the Revenue Commissioners that the total number of new vehicles registered for Vehicle Registration Tax by county during the month of January in the years 2011, 2012, 2013, 2014 and 2015 is shown in the table.
|
January |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Registrations |
|
|
|
|
|
|
Carlow |
307 |
345 |
269 |
396 |
465 |
|
Cavan |
295 |
299 |
224 |
319 |
440 |
|
Clare |
573 |
610 |
479 |
631 |
881 |
|
Cork |
3,056 |
3,219 |
2,679 |
3,547 |
4,929 |
|
Donegal |
540 |
593 |
527 |
690 |
874 |
|
Dublin |
8,027 |
7,977 |
6,871 |
8,677 |
12,071 |
|
Galway |
1,028 |
1,089 |
840 |
1,122 |
1,506 |
|
Kerry |
566 |
634 |
481 |
650 |
848 |
|
Kildare |
1,022 |
1,050 |
886 |
1,279 |
1,583 |
|
Kilkenny |
562 |
558 |
539 |
651 |
815 |
|
Laois |
333 |
388 |
315 |
395 |
473 |
|
Leitrim |
126 |
122 |
83 |
128 |
159 |
|
Limerick |
961 |
987 |
812 |
1,065 |
1,409 |
|
Longford |
171 |
176 |
122 |
148 |
193 |
|
Louth |
623 |
590 |
435 |
600 |
883 |
|
Mayo |
461 |
534 |
452 |
581 |
734 |
|
Meath |
756 |
867 |
596 |
852 |
1,186 |
|
Monaghan |
253 |
264 |
195 |
278 |
356 |
|
Offaly |
349 |
404 |
284 |
425 |
557 |
|
Roscommon |
245 |
321 |
219 |
296 |
380 |
|
Sligo |
263 |
309 |
208 |
287 |
316 |
|
Tipperary |
879 |
905 |
714 |
990 |
1,180 |
|
Waterford |
669 |
589 |
482 |
731 |
901 |
|
Westmeath |
400 |
415 |
380 |
461 |
628 |
|
Wexford |
713 |
680 |
601 |
857 |
1,009 |
|
Wicklow |
531 |
551 |
428 |
618 |
820 |
|
TOTAL |
23,709 |
24,476 |
20,121 |
26,674 |
35,596 |
Pension Provisions
Questions (215)
Eric J. Byrne
Question:215. Deputy Eric Byrne asked the Minister for Finance the reasons for the changes to the standard fund threshold regime; and if he will make a statement on the matter. [5630/15]
View answerWritten answers
I assume the Deputy is referring to the significant changes announced in Budget 2014 and provided for in Finance (No 2) Act 2013 to the maximum allowable pension fund at retirement for tax purposes (the Standard Fund Threshold SFT).
The main changes made can be summarised as follows:
- Firstly, the absolute value of the SFT was reduced, with effect from 1 January 2014, from €2.3 million to €2 million.
- Secondly, the valuation factor to be used for establishing the capital value of defined benefit (DB) pension rights at the point of retirement, where this takes place after 1 January 2014, was changed from a standard valuation factor of 20 to a range of higher age related valuation factors that vary with the individual's age at the point at which the pension rights are drawn down.
- Thirdly, in calculating the capital value of a DB pension at the point of retirement, transitional arrangements provide for a split calculation where part of the pension had already been accrued at 1 January 2014 so that the part accrued up to that date will be valued at a factor of 20 and the part accrued after that date valued at the appropriate higher age-related valuation factor. (The factors range from 37, in respect of pension benefits accrued after 1 January 2014 and drawn down at age 50 or under, to 22 in respect of benefits drawn down at age 70 or over.)
- Finally, the reimbursement options, introduced in Finance Act 2012, for public servants affected by chargeable excess tax are being amended and extended.
As occurred on the occasion of the introduction of the SFT regime in 2005, and again when the value of the SFT limit was reduced to €2.3m in 2010, the legislation contained in Finance (No 2) Act 2013 provides for an individual who has pension rights on 1 January 2014 in excess of the new lower SFT limit of €2m, to claim a Personal Fund Threshold (PFT) from Revenue in order to protect or grandfather the value of those rights on that date. This is subject to a maximum PFT of €2.3m, and individuals with PFTs from 2005 or 2010 retain those PFTs.
The primary purpose of the changes made to the SFT regime is to further restrict the capacity of higher earners to fund or accrue large pensions through tax-subsidised sources in line with the commitment made in the Government programme for National Recovery 2011-2016. In addition, the introduction of higher age-related factors to value DB pension entitlements significantly improves the equity of the SFT regime as between DB and defined contribution (DC) pension arrangements and between those who retire at younger ages and those who retire later in life.
The SFT regime addresses the problem of pension overfunding and excessive pension accrual by dealing with it at the point of pension drawdown in retirement rather than by applying restrictions to pension savings or accrual upfront. The regime achieves this by imposing a significant tax charge on the value of retirement benefits above set limits (the SFT or PFT, as appropriate) when they are drawn down. In this way it acts to discourage the building up of large pension funds in the first place or unwinds the tax advantage of such overfunding by clawing back, through the tax charge, the tax relief granted.
In Finance Act 2014, I introduced further amendments to the SFT regime to deal with issues arising in cases involving Pension Adjustment Orders (PAOs) the purpose of which is to provide for a more equitable sharing of the chargeable excess tax between the parties to PAOs in affected cases where the SFT or PFT, as appropriate, is exceeded.
Debt Conference
Questions (216, 221)
Peter Mathews
Question:216. Deputy Peter Mathews asked the Minister for Finance his plans to support a European debt conference; and if he will make a statement on the matter. [5635/15]
View answerPeter Mathews
Question:221. Deputy Peter Mathews asked the Minister for Finance if he will request the European Union to chair a European debt conference in Dublin; and if he will make a statement on the matter. [5753/15]
View answerWritten answers
I propose to take Questions Nos. 216 and 221 together.
My view is that when countries encounter difficulties, a process of negotiation is always better than one of conflict.
Specifically in the case of euro area Member States, all programme negotiations have been conducted within the Eurogroup and Ecofin, with IMF involvement as appropriate. My view is that these are the appropriate fora for resolving outstanding issues such as this.
VAT Rate Application
Questions (217)
Michael Colreavy
Question:217. Deputy Michael Colreavy asked the Minister for Finance the amount of revenue is collected from VAT on public service obligation levies in energy bills; and if it is possible to remove this VAT. [5709/15]
View answerWritten answers
I am advised by the Revenue Commissioners that the information furnished on VAT returns does not require the yield from particular activities or sectors of trade to be identified. The amount of VAT collected in respect of public service obligation levies cannot be identified in the overall yield of VAT.
I am further advised by the Revenue Commissioners that VAT is an EU-wide tax and Irish VAT law must comply with the EU VAT Directives. Article 78 of EU Council Directive 2006/112/EC provides that the taxable amount shall include "taxes, duties, levies and charges, excluding the VAT itself". This is transposed in section 37(1) of the Value-Added Tax Consolidation Act 2010 which provides that the amount on which Value-Added Tax is chargeable is the total consideration receivable by the supplier, "including all taxes, commissions, costs and charges whatsoever" but not including the Value-Added Tax itself. Accordingly, it is not possible to change Irish VAT law to exclude the public service obligation levies from the application of VAT.
Property Tax Exemptions
Questions (218)
Helen McEntee
Question:218. Deputy Helen McEntee asked the Minister for Finance if he will amend the criteria for those seeking an exemption from the property tax due to pyrite in their homes (details supplied); and if he will make a statement on the matter. [5727/15]
View answerWritten answers
The exemption from Local Property Tax (LPT) based on "significant pyritic damage" was comprehensively dealt with in a number of Parliamentary Questions last year, including Questions no. 217 (8212/14) on 18/2/14, no. 121 (19698/14) on 30/4/14, no. 43 (26462/14) on 19/6/14, no. 14 (37016/14) on 2/10/14 and no. 38 (41718/14) on 5/11/2014.
Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three consecutive years from the charge to Local Property Tax for residential properties that have been certified under Regulations made by the Minister for the Environment, Community and Local Government (S.I. No. 147 of 2013) as having "significant pyritic damage". These Regulations describe the methodology that must be used when a property is being assessed for pyrite damage.
Revenue has an obligation to act in accordance with section 10A of the LPT legislation which requires that an LPT exemption can only apply where the residential property has been assessed and a certificate confirming "significant pyritic damage" has been issued.
However, officials of my Department, together with officials of the Department of Environment, Community & Local Government, are examining the alternatives other than testing that may be available in order to confirm entitlement to an LPT exemption.
My officials continue to examine this issue and how it can be resolved satisfactorily. That may necessitate a change in the relevant provisions of the Finance (Local Property Tax) Act 2012 (as amended) and/or the Finance (Local Property Tax) (Pyrite Exemption) Regulations. When I have made my decision I will communicate it to the Deputy immediately. If it is the case that legislative change is required, I will examine with the Revenue Commissioners the possibilities for applying any changes on an administrative basis, in advance of such legislative changes.
I am conscious that the issue to which the Deputy refers needs to be addressed. I want to reassure her, and homeowners affected, that the situation is receiving attention.