John McGuinness
Question:179. Deputy John McGuinness asked the Tánaiste and Minister for Social Protection if a carer's allowance will be approved in respect of a person (details supplied) in County Carlow. [9381/15]
View answerCarer's Allowance Appeals
Questions (179)
Written answers
I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all of the available evidence, including that adduced at the oral hearing, has decided to allow the appeal of the person concerned. The person concerned has been notified of the Appeals Officer’s decision.
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.
Illicit Trade in Tobacco
Questions (180)
Michael Healy-Rae
Question:180. Deputy Michael Healy-Rae asked the Minister for Finance if he will introduce a proper banning of illegal cigarettes sales in streets, markets, and fairs (details supplied); and if he will make a statement on the matter. [9242/15]
View answerWritten answers
The regulation of the retail sale of cigarettes is a matter for my colleague, the Minister for Health. However, the supply and sale of cigarettes which have not been duty paid is banned under tobacco products tax law. All cigarettes that are intended for delivery, sale and consumption in the State must have the appropriate tax stamp affixed to the pack by the manufacturer to show that the cigarettes are tax paid. It is an offence, under Chapter 3 of Part 2 of the Finance Act 2005, for any person to offer or keep cigarettes for sale which do not comply with these tax stamp requirements, or for any person to knowingly use or deal in a counterfeited or altered tax stamp. In addition, any cigarettes in respect of which an offence has been committed under these provisions, and anything used to conceal these cigarettes, or any vehicle or conveyance used to carry them, are liable to seizure.
The Revenue Commissioners inform me that, in 2014, 53 million cigarettes and 9,836 kilograms of tobacco were seized. There were 111 convictions for smuggling or illegal selling of tobacco, resulting in fines of €227,219 and 28 custodial sentences being imposed. In addition, surveys of smokers by Ipsos MRBI, carried out for the Revenue Commissioners and the National Tobacco Control Office of the Health Services Executive, show that the consumption of illicit cigarettes has fallen from 15% in 2009 to 11% in 2013, suggesting that the consumption of illicit cigarettes is being contained.
New measures introduced in recent Finance Acts have further assisted the Revenue Commissioners, including the introduction of offences for involvement with illicit tobacco production, knowingly dealing in or delivering any illicit tobacco product and greater powers to search bags in the case of suspected illicit street sales. Where justified, I am committed to bringing forward new enforcement measures against the illicit tobacco trade.
Tax Avoidance
Questions (181)
Michael Healy-Rae
Question:181. Deputy Michael Healy-Rae asked the Minister for Finance if consideration will be given to the introduction of a substantial minimum fine/sentence on conviction for smuggling; and if he will make a statement on the matter. [9244/15]
View answerWritten answers
The penalties for smuggling an excisable product are laid down in section 119 of the Finance Act 2001 and were increased substantially in the Finance Act 2010. On conviction following summary prosecution, a court may impose a fine of €5,000; the court may also impose a term of imprisonment not exceeding 12 months, instead of, or in addition to, the fine. For convictions following prosecution on indictment, the court may impose a fine not exceeding €126,970 or, where the value of the product involved in the offence is greater than €250,000, a fine not exceeding three times the value of the product. The Court may also impose a term of imprisonment not exceeding 5 years as an alternative to or in addition to these fines. Section 130 of the 2001 Act permits a trial judge, at his or her discretion, to mitigate a fine incurred for an offence under excise law, provided that the amount mitigated is not greater than 50 per cent of the amount of the fine.
As the Deputy is aware, the penalty to be imposed in any particular case is a matter for the courts, which have a great deal of discretion in this area. Where the courts believe that a prescribed fine is too onerous given the facts of the case and the circumstances of the person convicted, they can mitigate the fine and/or impose suspended custodial sentences.
I have no plans to introduce minimum sentencing. However, the position in relation to penalties is kept under review, taking account, among other considerations, of practical experience in the operation of the increased fines provided for in the 2010 Act.
Strategic Banking Corporation of Ireland
Questions (182)
Dara Calleary
Question:182. Deputy Dara Calleary asked the Minister for Finance regarding the State-backed Strategic Banking Corporation of Ireland, the percentage of lending that will be stock lending; and if he will make a statement on the matter. [9274/15]
View answerWritten answers
The Strategic Banking Corporation of Ireland (SBCI) launched its initial product programme on 19 February 2015. The SBCI has secured funding of €800m to fund its first loans that will be lower cost and longer term for both working capital and investment. The minimum duration of loans is two years and the maximum duration ten years. The SBCI is seeking to support flexible loans that better suit the needs of Irish business and will develop and adapt its offerings over time to achieve this.
The Government's aim for the SBCI is to change the range and profile of SME finance providers in Ireland. With this in mind, the SBCI has engaged with other banks as well as non-bank providers of finance and potential new entrants to the market such as providers of invoice discounting, leasing and asset based finance to broaden the funding options available to the SME sector through the availability of SBCI monies.
The SBCI will provide working capital loans through its lending partners. Borrowers can use the SBCI's working capital product to finance their business, including stock lending such as buying finished goods for resale or buying raw materials for manufacturing. There is no target percentage for stock lending.
The SBCI is flexible and has the ability to adapt and develop its product set to meet the needs of the market as they are identified. New initiatives in the pipeline will deliver new products, new market participants and support for the growth of existing non-bank credit providers all driving competition in the market.
Housing Issues
Questions (183)
Pearse Doherty
Question:183. Deputy Pearse Doherty asked the Minister for Finance his plans for a mortgage insurance scheme; and his views on the Central Bank of Ireland's comments on the issue. [8729/15]
View answerWritten answers
Construction 2020 committed the Government to examining the concept of a mortgage insurance scheme, to ensure sustainable levels of mortgage lending in the medium term.
In October I wrote to the Oireachtas Committee on Finance, Public Expenditure and Reform requesting that the committee consider the matter of mortgage insurance in an Irish context and, drawing on the experiences of other countries, prepare a report on the issue. The Committee has concluded its deliberations and has given me and the Governor of the Central Bank a copy of the report. As noted in the report, the full implications of a mortgage insurance scheme can only be examined once the new Central Bank Macro Prudential regulations for residential mortgage lending are in place and the effects they have on mortgage lending can be examined. As the Deputy is aware, the Central Bank also considered the issue of mortgage insurance in the context of the new macro prudential framework and it concluded that an exception for suitably insured mortgages was not an effective practical amendment at this time.
An overriding primary public policy concern is to deliver an affordable and sustainable housing and credit market over the course of the economic cycle and the avoidance of boom and bust cycles which we have experienced in the recent past. The new Central Bank macro prudential measures are intended to help achieve that objective. Mortgage insurance could have a contributory role to play in the achievement of that objective at a future point. However, as suggested by the Central Bank, it is likely to have such a role only if it effectively transfers risk away from the banking system and from the State in a cost effective way. This is a matter, therefore, that will need to be kept under review by my Department and by the Central Bank. However, due to the need to transfer risk I would not see the State playing a role in underwriting or guaranteeing the provision of mortgage indemnity insurance.
Tax Collection
Questions (184)
Pearse Doherty
Question:184. Deputy Pearse Doherty asked the Minister for Finance if the Revenue Commissioners, as administrators of the pay related social insurance system on behalf of the Department of Social Protection, will provide the information requested, in Parliamentary Questions Nos. 173 and 174, of 17 February 2015; and if not, the reason for same. [8730/15]
View answerWritten answers
I am advised by the Revenue Commissioners that the estimated Pay Related Social Insurance (PRSI) liabilities, as returned to Revenue by employers, for proprietary company directors from 2005 to 2013 (the most recent year for which data are available) are as shown in the table.
|
Year |
Estimated PRSI Liability €M |
|
2005 |
196 |
|
2006 |
240 |
|
2007 |
255 |
|
2008 |
250 |
|
2009 |
238 |
|
2010 |
254 |
|
2011 |
145 |
|
2012 |
146 |
|
2013 |
152 |
The amounts in the table relate to declared liabilities and do not take account of subsequent unpaid liabilities, liabilities assessed under an audit or liabilities subsequently amended by Department of Social Protection following a determination of insurable status of working directors.
I am further advised by the Commissioners that it is not possible, due to the manner in which the data are compiled, to estimate the effect of categorising working proprietary company directors as class A for PRSI purposes.
Tax Yield
Questions (185)
Clare Daly
Question:185. Deputy Clare Daly asked the Minister for Finance if he will provide the total annual amount paid, or expected to be paid, per year to the Irish Exchequer in taxation in respect of Ireland’s producing gas fields for the past three years; and the estimated revenue to the Exchequer, per year, for the next five years. [8731/15]
View answerWritten answers
I am informed by the Revenue Commissioners that their obligation to observe confidentiality of taxpayers' information, and the small group of taxpayers encompassed by the question, precludes them from providing the information requested.
Financial Services Regulation
Questions (186)
Michael McGrath
Question:186. Deputy Michael McGrath asked the Minister for Finance the reason a company (details supplied), which charges exorbitant rates of interest, is allowed to continue to trade in the State; the steps the Central Bank of Ireland is taking to deal with the issue; and if he will make a statement on the matter. [8745/15]
View answerWritten answers
I have been informed by the Central Bank that the company to which the Deputy refers is not regulated by it.
The Central Bank Act 1997 contains a number of exclusions from the requirement to be authorised by the Central Bank and firms that meet the relevant criteria can avail of such exclusions. Separately, this Act also contains a number of exemptions from the requirement to be authorised by the Central Bank. To date the Central Bank has granted an exemption to 14 entities but the company to which the Deputy refers is not one of the entities granted such an exemption.
The Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.
The Bill was published in January and second stage of the Bill was taken in the Dáil on 4 February. Since then, my officials have been in contact with the Central Bank and with the Office of the Attorney General to further progress the legislation. The Bill will continue its progress through the legislative process and I look forward to further discussion of the Bill at Committee Stage.
Public Sector Staff
Questions (187)
Clare Daly
Question:187. Deputy Clare Daly asked the Minister for Finance if he will justify the fact that 110 staff in the Revenue Commissioners will be let go on 27 March 2015, despite the fact that they have successfully worked in that area for many months and that they will be replaced from an outside panel, necessitating extra training when there were persons in situ that were capable of doing that job. [8748/15]
View answerWritten answers
I am advised by the Revenue Commissioners that the temporary staff in question were recruited to carry out work associated with the introduction of Local Property Tax (LPT) and also for the Household Charge Arrears project.
The task of introducing this new tax (LPT), the largest extension of the self-assessment system in the history of the State, posed major administrative challenges. The staffing model for its introduction was built on flexible deployment, which included a mix of experienced existing staff and additional staff employed on a temporary basis.
The responsibility for the collection of Household Charge arrears not paid to local authorities by 1 July 2013 was passed to Revenue. This is a once off temporary project that will be substantially completed shortly. This project was staffed primarily with temporary staff.
The temporary staff employed for the set-up of LPT and the collection of Household Charge arrears were employed on fixed-term contracts which specifically stipulated that their employment would end on a specific date or when the task for which they had been employed was completed. In accordance with their contracts, employment of these temporary staff will cease on 27 March 2015. Revenue is not in a position to offer them permanent employment when their fixed-term contracts expire.
The recruitment and appointment of permanent staff in Revenue is regulated by the Commission for Public Service Appointments. All recruitment for permanent positions in Revenue must be carried out in accordance with the recruitment licence granted by the Commission. The licence held by Revenue does not provide for the awarding of permanent contracts to staff on the basis of temporary employment. However, they are eligible to apply in the normal way for any open competitions being run by the Public Appointments Service (PAS) or Revenue to recruit permanent staff.
Revenue ran a competition in January 2014 which enabled serving temporary Revenue staff apply to fill a number of permanent posts. More recently, the Public Appointments Service held an open clerical officer competition which closed in July 2014. Temporary Revenue staff were eligible to apply for this competition. Revenue will recruit from this panel to fill permanent clerical officer positions as they arise.
VAT Rate Reductions
Questions (188)
Mary Mitchell O'Connor
Question:188. Deputy Mary Mitchell O'Connor asked the Minister for Finance if the value added tax on bottled water products, currently charged at the standard rate, will be reduced; and if he will make a statement on the matter. [8797/15]
View answerWritten answers
Bottled water is subject to the standard VAT rate. The standard rate is the VAT rate applied to bottled water in the majority of EU Member States. Prior to 1992 bottled waters and fruit juices had applied at the zero rate, but were made subject to the standard rate from 1 November 1992 in order to correct a competitive anomaly, as similar competing products such as soft drinks were standard rated. The change in the VAT treatment coincided with the removal of excise duty from bottled water.
Where a product was zero rated prior to 1 January 1991 but subsequently standard rated, it is not possible to reintroduce the zero rate for that product. However, under Annex III of the EU VAT Directive, Member States are permitted to apply a reduced rate of not less than 5% to bottled water. It would therefore be possible to apply our reduced rate of 9% or 13.5% to these drinks. However, a reduction in the rate of VAT on such a product would be costly to the Exchequer and I have no plans to reduce the rate of VAT on bottled water.
VAT Rate Reductions
Questions (189)
Mary Mitchell O'Connor
Question:189. Deputy Mary Mitchell O'Connor asked the Minister for Finance the reason nicotine replacement patches are subject to the standard 23% rate of value added tax; if it will be reduced; and if he will make a statement on the matter. [8798/15]
View answerWritten answers
Nicotine products, such as nicotine inhalers, tablets and chewing gum, which are categorised as oral medicines and are licensed by the Irish Medicines Board, are charged to VAT at the zero-rate.
Nicotine replacement patches and electronic cigarettes, however, do not fall into this category of oral medicines and are therefore subject to the standard 23% rate of VAT. I have no plans to reduce the rate of VAT on these items.
Financial Services Regulation
Questions (190, 191)
Paul Murphy
Question:190. Deputy Paul Murphy asked the Minister for Finance if he will report on discussions held with a company (details supplied), regarding the purchase of non-performing Permanent TSB home loans; and if he will make a statement on the matter. [8804/15]
View answerPaul Murphy
Question:191. Deputy Paul Murphy asked the Minister for Finance if he will report on the discussions held regarding the sale of Permanent TSB home loans; and if he will impose restrictions on the buyer of Permanent TSB home loans, to ensure that mortgage holders are provided the protection of Irish regulations and the code of conduct on mortgage arrears. [8805/15]
View answerWritten answers
I propose to take Questions Nos. 190 and 191 together.
I have been informed that officials in my Department have met representatives of the company (details supplied) in total on four occasions. On three of these occasions the meetings were between Department of Finance officials and representatives of the company (details supplied). On a fourth occasion the meeting was attended by Regina Doherty TD and representatives of the company (details supplied).
Discussions centred around a proposal to buy non-performing loans from Irish banks but no specific proposals were discussed in relation to individual banks operating in Ireland, including Permanent TSB.
Separately, PTSB has advised me that it is not currently in a sales process in respect of the sale of 5,000 non-performing home loans as speculated in one newspaper recently.
I would also like to add that on 14 January 2015 the Consumer Protection (Regulation of Credit Servicing Firms) Bill was published. The primary purpose of this Bill is to protect consumers whose loans are sold to unregulated entities. Credit servicing firms will require authorisation from the Central Bank and will be regulated by the Central Bank. All borrowers will have access to the Financial Services Ombudsman complaints procedure regarding treatment by credit servicing firms. This important piece of legislation will ensure that borrowers whose loans are sold by a regulated entity to a currently unregulated entity maintain the same protections as they had prior to the sale. The protections will apply to all consumers regardless of when the loans were drawn down, thus providing complete certainty to all customers. Subject to the legislative programme, the Bill will go through the Houses of the Oireachtas shortly.
Corporation Tax
Questions (192)
Paul Murphy
Question:192. Deputy Paul Murphy asked the Minister for Finance his views on the proposal in the Northern Ireland Assembly, to introduce a 10% corporate taxation rate. [8806/15]
View answerWritten answers
In the first instance, this is a matter for the Northern Ireland Authorities and the Westminster Government.
However it is well known that Ireland is a supporter of fair tax competition and the OECD has consistently stated that low corporation tax rates combined with a broad base is the best way to encourage economic growth, while still maintaining tax revenues.
That is what we have being doing for many years and what we will continue to do. The 12.5% rate is a central pillar of our taxation system but it is important to remember that attracting foreign direct investment and stimulating growth is about much more than just having a competitive tax rate. As I have stated many times, the Irish system is built upon the 3 Rs and while rate is a key feature, the other two Rs of regime and reputation are equally important in shaping a competitive taxation landscape.
Ireland would be fully supportive of any measures which would make the Island of Ireland, as a whole, more competitive but a low stable corporate tax rate is only one piece in the competitiveness jigsaw.
A reform of the Northern Ireland corporation tax rate has the potential to generate benefits on both parts of the island.
Disabled Drivers and Passengers Scheme
Questions (193)
Charlie McConalogue
Question:193. Deputy Charlie McConalogue asked the Minister for Finance if he will provide a breakdown, by county, of the number of persons that availed of tax relief under the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [8817/15]
View answerWritten answers
I am advised by the Revenue Commissioners that the following table indicates the number of persons that availed of tax relief towards the purchase of new and used vehicles in the year 2014 under the Drivers/Passengers with Disabilities Scheme, broken down by county.
|
County |
Number (new and used vehicles) in 2014 |
|
Carlow |
41 |
|
Cavan |
82 |
|
Clare |
198 |
|
Cork |
835 |
|
Donegal |
261 |
|
Dublin |
818 |
|
Galway |
415 |
|
Kerry |
187 |
|
Kildare |
130 |
|
Kilkenny |
73 |
|
Laois |
58 |
|
Leitrim |
54 |
|
Limerick |
291 |
|
Longford |
33 |
|
Louth |
170 |
|
Mayo |
272 |
|
Meath |
152 |
|
Monaghan |
69 |
|
Offaly |
51 |
|
Roscommon |
94 |
|
Sligo |
103 |
|
Tipperary |
192 |
|
Waterford |
92 |
|
Westmeath |
66 |
|
Wexford |
165 |
|
Wicklow |
95 |
|
Total |
4,997 |
Universal Social Charge Application
Questions (194)
Terence Flanagan
Question:194. Deputy Terence Flanagan asked the Minister for Finance his plans to abolish the universal social charge; and if he will make a statement on the matter. [8856/15]
View answerWritten answers
The Universal Social Charge (USC) was introduced in Budget 2011. It was a necessary measure to widen the tax base, remove poverty traps and maintain revenue to reduce the budget deficit. It is a more sustainable charge than those it replaced. It is applied at a low rate on a wide base. I should point out that it was never intended that the USC would be a temporary measure and was designed and incorporated in to the Irish taxation system as part of its permanent structure and the revenues collected play a vital part in meeting the many expenditure demands placed on the Exchequer. The USC cannot be considered as an additional tax given that its introduction allowed for the abolition of two other taxes i.e. the Income Levy and the Health Levy. It is important to note that the yield from the USC is broadly similar to that raised by the two charges which it replaced.
The Deputy will be aware that as a result of the changes introduced in the last Budget, all those who currently pay income tax and/or USC will see a reduction in their tax bill this year. As a direct result of the extension of the exemption threshold from €10,036 to €12,012, it is estimated that an additional 87,000 low income earners will be removed from the charge entirely. This is on top of the estimated 330,000 income earners that this Government removed from the charge in Budget 2012. This means that in 2015, approximately 28% of all income earners will not pay any Universal Social Charge at all.