Tuesday, 21 Apr 2015

Written Answers Nos. 303-322

Property Tax

Questions (303)

Finian McGrath

Question:

303. Deputy Finian McGrath asked the Minister for Finance his views on a matter (details supplied) regarding property tax; and if he will make a statement on the matter. [15540/15]

Written answers

Minister for Finance

I wish to advise the Deputy that, having made a commitment to examine the Local Property Tax (LPT) and any impacts on LPT liabilities as a result of property price movements, I have appointed former public servant  Dr. Don Thornhill to conduct a review to consider and make recommendations on the operation of the Local Property Tax.  In particular the Review will have regard to:

Recent residential property price developments,

The overall yield from LPT and its contribution to total tax revenue on an ongoing basis, and

The desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons.

A public consultation has been launched as part of the review, inviting submissions from the public on the operation of LPT.  This public consultation process will run until 30th April 2015. Any submissions that the Deputy or the person, on whose behalf this Question was asked, may wish to make to the public consultation will be more than welcome.

Submissions may be made by email to [e-mail] or by post to:

Local Property Tax Review

Tax Policy Division

Department of Finance

Government Buildings

Upper Merrion Street

Dublin 2

I expect that the review will be completed by summer 2015, and will be considered in the context of Budget 2016.

Consumer Credit Act Review

Questions (304)

Finian McGrath

Question:

304. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding the Consumer Credit Act 1995; and if he will make a statement on the matter. [15548/15]

Written answers

Minister for Finance

I am advised by the Central Bank of Ireland that the statutory powers to prosecute summarily or pursue a suspected contravention of Section 129(2) of the Consumer Credit Act 1995 under the Administrative Sanctions Procedure (governed by Part IIIC of the Central Bank Act 1942) are both discretionary powers, the use of which is considered on a case by case basis. 

The Central Bank has published its general approach where both the Administrative Sanctions Procedure and summary criminal prosecution are available in respect of a suspected contravention/offence. In the Central Bank's 'Outline of the Administrative Sanctions Procedure' paragraph 3.6.1 a) notes that "(t)he Central Bank may decide to pursue suspected contraventions through the Administrative Sanctions Procedure instead of bringing a summary prosecution. However, the Central Bank will consider the circumstances of each case on its merits and may decide to pursue matters which constitute both a prescribed contravention and a criminal offence via the criminal courts. In deciding whether to pursue criminal proceedings, the Central Bank will exercise its discretion, having regard to the Director of Public Prosecution's "Guidelines for Prosecutors".  The particular circumstances of each case are considered on their own merits to decide if it is appropriate to exercise the statutory discretion to take action in respect of a suspected offence/contravention.

 

IBRC Staff

Questions (305)

Catherine Murphy

Question:

305. Deputy Catherine Murphy asked the Minister for Finance if staff which his Department seconded to the Irish Bank Resolution Corporation from September 2012 reported to his Department any concerns related to persons working at the corporation (details supplied) and their potential conflicts of interest relating to the disposal of an indebted entity, Boundary Capital; if the person on secondment indicated to whom the debt of Boundary Capital was sold; if any action was taken at the time; and if he will make a statement on the matter. [15583/15]

Written answers

Minister for Finance

I have been advised that the senior official from my Department who was seconded to IBRC (who commenced his role in October 2012) did not raise any concerns relating to the person referred to in the question. I am further advised that the senior official from my Department who was seconded to IBRC was not involved in any discussions for or on behalf of IBRC in relation to transactions relating to Boundary Capital or with Boundary Capital.

Tax Exemptions

Questions (306)

Clare Daly

Question:

306. Deputy Clare Daly asked the Minister for Finance the basis on which an organisation (details supplied) has been given a charity number with tax-free status when it is clearly not a charity but a right wing think tank. [15627/15]

Written answers

Minister for Finance

For reasons of taxpayer confidentiality I cannot comment on the tax affairs of individual bodies. However, in order to avail of a charitable tax exemption, a body or trust must be established for charitable purposes only and must apply all of its income to charitable purposes.

The Revenue Commissioners have procedures in place to ensure that a charitable tax exemption is only granted to bodies/trusts that meet the required criteria. Furthermore, bodies/trusts that are granted charitable tax exemption are subject to periodic review to ensure that they continue to comply with the terms of that exemption.

IBRC Staff

Questions (307)

Catherine Murphy

Question:

307. Deputy Catherine Murphy asked the Minister for Finance further to his statement that his Department had a number of concerns regarding the quality of decisions taken at the Irish Bank Resolution Corporation over the sale of a company (details supplied), if those concerns specifically included the possibility that a senior staff member (details supplied) of the corporation had a triple conflict of interest in that the staff member simultaneously managed the company's account, the account of the owner of the ultimately successful bidder for the company and the personal account of the chief executive officer of the company during the sale process; if his Department made any inquiries on this specific matter; if so, if he will share these findings; if this specific matter was raised by him or his officials during the meetings which took place arising from the sale of the company; and if he will make a statement on the matter. [15637/15]

Written answers

Minister for Finance

Notwithstanding that officials from my Department had concerns regarding the quality of some decisions taken by IBRC prior to its liquidation, I am not aware of and there are no records which suggest that there were any concerns with the person referred to in the question or of any potential conflicts of interest that existed in his role in IBRC. Therefore, I am unable to comment further on this matter.

IBRC Operations

Questions (308)

Catherine Murphy

Question:

308. Deputy Catherine Murphy asked the Minister for Finance the number of bids that were received during the first round of the sale of an entity (details supplied) by the Irish Bank Resolution Corporation; if he will provide a list of those bids; if the company which was ultimately successful in purchasing the entity was in fact among the first bidders; if that bid amount changed over the course of the bidding process; and if he will make a statement on the matter. [15708/15]

Written answers

Minister for Finance

Following a review of the transaction concerning the company referred to in the question by officials in my Department on 11 June 2012, they were made aware by IBRC that 8 bids were received for the company referred to in the question. While there is evidence that certain bid amounts may have changed during the process, there is no record that officials in my Department were furnished with the names of the 8 bidders, the amounts which each bidder submitted in the first round or in the second round, nor the reasons behind any changes in bid amounts which may have occurred, so I am unable to comment further.

NAMA Expenditure

Questions (309)

Michael McGrath

Question:

309. Deputy Michael McGrath asked the Minister for Finance if he will provide an itemised breakdown of amounts over €100,000 of the €13.1 million in fees paid by the National Asset Management Agency to professional firms under the headings of legal fees and portfolio management fees in 2014; in the tables to be provided, if he will include the name of the firm and-or person in question, and the amount, over €100,000, paid out to each firm and-or person; the reason there was a 33% increase in fees paid to professional firms by the agency in 2014; and if he will make a statement on the matter. [15744/15]

Written answers

Minister for Finance

In response to the Deputy's Parliamentary Question 81 of 2nd April 2015 (PQ 132827/15), NAMA provided a detailed aggregate breakdown of payments in excess of €100,000 to individual legal and portfolio management service providers. It is not appropriate in the context of Parliamentary Questions for NAMA to provide an invoice-by-invoice breakdown of incurred expenses, including for the reason that the provision of individual invoice details could have the effect of identifying individual debtors and individual debtor assets in contravention of sections 99 and 202 of the NAMA Act or may relate to specific legal advices in respect of matters currently before the courts. I am advised by NAMA that the increase in incurred expenses in 2014 reflects the significant increase in the volume of loan and property sales transactions from 1,800 in 2013 to 3,000 in 2014, representing an increase of 66%. This increase in transaction activity results in additional fees for legal and property services.

Tax Exemptions

Questions (310)

Seán Kyne

Question:

310. Deputy Seán Kyne asked the Minister for Finance the applicability of value-added tax to the activities of Outdoor Education Ireland; if the organisation operated on behalf of the education and training boards is exempted from this tax for some business operations; if so, if this is in keeping with fair competition, in view of the number of small and medium-sized enterprises operating in this sector, and their importance to rural communities; and if he will make a statement on the matter. [15807/15]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that paragraph 4(3) of Schedule 1 of the Value-Added Tax Consolidation Act 2010, in line with the EU VAT Directive, provides that children's and young people's education and school education provided by educational establishments recognised by the State and by other persons supplying education of a similar kind is exempt from VAT.  The exemption can be availed of by both educational establishments recognised by the State and by other persons once the relevant criteria are met so there is no issue of unfair competition between the two categories of providers.

While the nature and scope of what is interpreted as education that qualifies for the exemption is extensive and wide-ranging, in general, it includes classes that are led and directed, rather than merely supervised.  To qualify for the VAT exemption, outdoor education activities to which the Deputy refers must be provided in an appropriate sporting facility, be provided as a structured course, confer a level of skill or ability which can be evaluated by comparison with objective standards and there must be a student and tutor relationship. It is not a necessary condition that these outdoor education lessons take place during school hours or indeed in a school setting but it is a necessary condition that the lessons are similar to the programme, objectives and outcomes set out in the Department of Education and Science syllabus.  In contrast, where similar activities are provided by Outdoor Education Centres to adults they are generally liable to VAT since they are regarded as purely recreational.

I would point out that an establishment or person who provides such VAT-exempt education does not register for VAT and does not charge VAT on the supply of their services.  Persons who are exempt from VAT cannot recover VAT incurred on goods and services used for their provision of education, such as the purchase of fuel or IT equipment or software licenses.  

Tax Code

Questions (311)

Seán Kyne

Question:

311. Deputy Seán Kyne asked the Minister for Finance if he is aware that the operation of the single-person child carer tax credit, which replaced the one-parent family tax credit, has negatively impacted on some parents, who share custody and parenting responsibilities; and his views that the rules of the new tax credit are at odds with promoting parental responsibility and equality among different family structures. [15808/15]

Written answers

Minister for Finance

As the Deputy is aware, the One-Parent Family Tax Credit (OPFTC) has been replaced with the Single Person Child Carer Credit since 1 January 2014.   However, the new credit is more targeted in that it is, in the first instance, only available to the primary carer of the child.

Given the difficult fiscal environment, it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socioeconomic objectives that are set for them.

The Commission on Taxation acknowledged that the previous One Parent Family Tax Credit played a role in supporting and incentivising the labour market participation of single and widowed parents.  However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the primary carer only. The restructuring of the credit achieves such an outcome.

The person who cares for the child for most of the year is entitled to the credit in the first instance. Agreement as to who will be the primary carer of a child is a matter for the parents or guardians. However, only the primary carer is entitled to the credit.

It should be noted that where a primary carer is married, in a civil partnership or cohabiting they would not be entitled to the new credit (or indeed the former one), on the basis that the relevant child is not, in the main, being cared for by a single person. In such circumstances the primary carer cannot relinquish the credit to a secondary carer. In addition, a secondary carer who is married, in a civil partnership or cohabiting, would not be entitled to the new credit (or indeed the former one) regardless of the marital status of the primary carer.

There is no specific tax credit for children in the tax code. Therefore, married or cohabiting couples are unable to avail of any additional credit to assist them in the financial maintenance of their children.  In certain cases, such couples also need to maintain two households due to the location of employment, for example.

While I understand the difficulties being experienced by those that cannot avail of the SPCCC, I am satisfied that the credit targets limited Exchequer resources to where they are needed most. In addition, it is not a function of the tax system to incentivise shared custody and shared parenting responsibilities.

 

Post Office Network

Questions (312)

Michael Healy-Rae

Question:

312. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the decline of the Irish postmasters; and if he will make a statement on the matter. [15810/15]

Written answers

Minister for Finance

Issues related to An Post are generally a matter for my colleague the Minister for Communications, Energy and Natural Resources.

The Strategy for Financial Inclusion called for the nationwide launch of a Standard Bank Account as a first step in promoting Financial Inclusion. A pilot project for a Basic Bank Account was run, which finished on 31 March 2013 after a 9-month pilot period. A total of 205 accounts were opened during the Pilot, which the Financial Inclusion Working Group (FIWG) felt was disappointing.

The Report of the Working Group on the Pilot project noted a number of reasons for this, including the view of stakeholders that one of the key elements required for a successful national roll-out of a Standard Bank Account is greater involvement by An Post and the credit unions. My Department is currently exploring with the relevant stakeholders how to make progress on this issue.

Public Sector Pensions Data

Questions (313)

Michael McGrath

Question:

313. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the number of retired public service pensions in payment in each year from 2008 to 2014, under the aegis of his Department; and if he will make a statement on the matter. [16053/15]

Written answers

Minister for Finance

The information requested by the Deputy for the agencies under the aegis of my Department is set out in the tables below:

National Treasury Management Agency (NTMA):

Year	2008	2009	2010	2011	2012	2013	2014
Number of retired public service pensions in payment	6	12	11	12	13	14	16

 

Central Bank:

Year	2008	2009	2010	2011	2012	2013	2014
Number of retired public service pensions in payment (as at year end)	243	282	311	347	369	382	469

 

The number of retired civil service pensions in payment for the Office of the Comptroller and Auditor General and the Revenue Commissioners for the years 2008 to 2014 are included within Parliamentary Question No. 315 answered by the Minister for Public Expenditure and Reform.  

Public Sector Pensions Data

Questions (314)

Michael McGrath

Question:

314. Deputy Michael McGrath asked the Minister for Finance the total value of public sector pensions in payment; the average public sector pension in 2014, under the aegis of his Department; and if he will make a statement on the matter. [16063/15]

Written answers

Minister for Finance

The information requested by the Deputy for the agencies under the aegis of my Department is set out in the tables below:

National Treasury Management Agency (NTMA):

Total value of public sector pensions in payment	Average public sector pension in 2014
€1,316,738	€82,296

 

Central Bank:

Total value of public sector pensions in payment	Average public sector pension in 2014
€9,298,000	€19,825.16

 

The total value of pensions in payment and the average pension amount in 2014 for civil servants in the Office of the Comptroller and Auditor General and the Revenue Commissioners are included within Parliamentary Question 15400/15 answered by the Minister for Public Expenditure and Reform.

Public Sector Pensions Data

Questions (315)

Michael McGrath

Question:

315. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will provide, in tabular form, the number of retired Civil Service pensions in payment in each year from 2008 to 2014, under the aegis of his Department; and if he will make a statement on the matter. [15399/15]

Written answers

Minister for Public Expenditure and Reform

The following table sets out the number of retired civil service pensions in payment each year from 2008 to 2014. 

	2008	2009	2010	2011	2012	2013	2014
Number of retired civil service pensions in payment	15,245	17,005	18,122	18,617	19,974	20,314	21,128

 

Public Sector Pensions Data

Questions (316)

Michael McGrath

Question:

316. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the total value of Civil Service pensions in payment; the average Civil Service pension in 2014, under the aegis of his Department; and if he will make a statement on the matter. [15400/15]

Written answers

Minister for Public Expenditure and Reform

Total pensions in payment for established civil servants in 2014 amounted to €324 m, corresponding to an average pension amount of €24,000. Pensions in respect of other civil service pensioners (for example unestablished retired civil servants and survivors) amounted to approximately €65 million, or an average pension amount of about €8,700.

Public Sector Pensions Data

Questions (317, 318, 319, 320)

Michael McGrath

Question:

317. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of €12,001 to €24,000, from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15401/15]

Michael McGrath

Question:

318. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of €24,001 to €60,000 from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15402/15]

Michael McGrath

Question:

319. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of €60,001 to €100,000 from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15403/15]

Michael McGrath

Question:

320. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount raised in 2014 from the public service pension reduction applied to pensions of over €100,000 from those who retired on or before 29 February 2012, and those who retired from 1 March 2012; and if he will make a statement on the matter. [15404/15]

Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 317 to 320, inclusive, together.

In my last review of the Financial Emergency Measures in the Public Interest (FEMPI) Acts laid before the Houses of the Oireachtas in June 2014, the Public Service Pension Reduction (PSPR) was estimated to save in the region of €125 million annually.  

Public service pensions awarded to or in respect of persons retiring or reaching preserved pension age from 1 March 2012 onwards are based on lower final salaries than for earlier-awarded pensions, insofar as they factor in the pay reductions, ranging from 5% to 15%, imposed across the public service with effect from 1 January 2010 under the Financial Emergency Measures in the Public Interest (No. 2) Act 2009.  

To reflect the impact of these lower final salaries on more recent pension awards, PSPR, as originally legislated for commencement on 1 January 2011, did not apply to pensions awarded on or after 1 March 2012.  

Subsequently, as provided for under the Financial Emergency Measures in the Public Interest Act 2013, and effective 1 July 2013, further pension decreases ranging from 2% to 5% were imposed on all public service pensions above €32,500.

These decreases were implemented by introducing PSPR at special low rates on post-February 2012 pensions, while at the same time adjusting upwards the PSPR rates applying to earlier-awarded pensions.  

The best available estimate of the requested breakdown of the annual PSPR saving, based on pension distribution in 2012, is provided below:  

Pensions awarded to or in respect of public servants retiring or reaching preserved pension age on or before 29 February 2012:

Pension level	Estimated Saving
€12,000 - €24,000	€10.4 million
€24,000 - €60,000	€93.7 million
> €60,000	€18.7 million

Pensions awarded to or in respect of public servants retiring or reaching preserved pension age on or after 1 March 2012:

Pension level	Estimated Saving
€12,000 - €24,000	€0
€24,000 - €60,000	€2.0 million
> €60,000	€0.4 million

Public Sector Staff Remuneration

Questions (321)

Billy Kelleher

Question:

321. Deputy Billy Kelleher asked the Minister for Public Expenditure and Reform if he will provide, in tabular form, the number of applications for increases in remuneration received by his Department since 1 January 2014; the details of the application for increase, that is the posts and levels of increase involved; and whether the application was approved. [15494/15]

Written answers

Minister for Public Expenditure and Reform

No cost-increasing claims by trade unions or employees for improvements in pay or conditions of employment can be made or processed during the currency of the Haddington Road Agreement.

As the Deputy will be aware, I have indicated my intention to enter into discussions later this year with the public service unions, and the representatives of public service pensioners, on successor arrangements to Haddington Road and on the gradual wind down of the Financial Emergency Measures in the Public Interest (FEMPI) Acts. The public service unions have also indicated their intention to submit pay claims this year, should economic circumstances permit. Any discussions on pay will, of course, take place in the context of the State's fiscal position and the pace of financial recovery for this year and 2016.

Local Authority Rates

Questions (322)

Seamus Kirk

Question:

322. Deputy Seamus Kirk asked the Minister for Public Expenditure and Reform if he will clarify his position regarding sports clubs which have an occasional licence for bar facilities; the way the rates liability is calculated in these circumstances; and if he will make a statement on the matter. [15729/15]

Written answers

Minister for Public Expenditure and Reform

The Commissioner of Valuation is responsible under the Valuation Act 2001 for the valuation of commercial property for the purposes of the calculation, by Local authorities, of commercial rates. The legislation gives me as Minister no role in the valuation of property. Under the Valuation Act 2001 as it stands, a Community Sports Club that has a licence under the Registration of Clubs (Ireland) Act 1904, has all of its premises taken into account when valued.

The legislation in this area is being changed. The Valuation (Amendment)(No.2) Bill 2012 was passed by both houses of the Oireachtas on 16th April 2015. After the Bill is enacted and on its commencement an amendment to Schedule 4 of the Valuation Act 2001 will take effect and will provide a partial exemption from commercial rates for Community Sports Clubs that are licensed under the Registration of Clubs (Ireland) Act, 1904. It will mean that for Community Sports Clubs that can have a bar, it will only be the commercial parts of their premises that will be valued for rates purposes rather than a valuation of all of their premises which is what happens under the current legislation. I am pleased to have been able to introduce an amendment which will give relief to local sports clubs who fulfil an important role in our communities and to resolve a long standing anomaly in the legislation. 

I am informed by the Commissioner of Valuation that, after the commencement of  the Valuation Amendment Act 2015, his office will initiate a process of updating the valuation lists for community sports clubs that will benefit from the amendment to Schedule 4. This process will involve seeking information from Community Sports Clubs so that the necessary changes to the valuation lists can be made. Any changes resulting from an amendment to Schedule 4 of the Valuation Act 2001 will be made in 2015 and will be effective for rates purposes in 2016. The calculation and collection of commercial rates is a matter for Local Authorities.