Written Answers Nos. 66-71
66. Deputy Patrick O'Donovan asked the Minister for Finance the criteria for the two thirds rule in the event of selling machinery when the repairs total two thirds of the total cost, should the value added tax rate be increased or remain the same for selling machinery; and if he will make a statement on the matter. [15943/15]
View answerI am advised by the Revenue Commissioners that the standard rate of VAT, currently 23%, which is the highest of the VAT rates, applies to the sale of machinery. Therefore, there are no circumstances in which the VAT rate could be increased when machinery is sold.
I would point out that the two-thirds rule mentioned by the Deputy applies to a supply of services where the value of the goods included in the supply exceeds two thirds of the total price charged. For example, where the cost to the repairer of materials used in the repair of a washing machine is €120 exclusive of VAT and the total charge for the repair work is €150 the standard rate of 23%, which is the rate applicable to the materials, is also the rate that applies to the total charge of €150. This situation contrasts with the reduced rate of VAT of 13.5% which normally applies to repair services where the materials used do not exceed two thirds of the total charge. I am further advised by the Revenue Commissioners that they cannot envisage any circumstance in which the conditions required for the application of the two-thirds rule would apply to costs incurred in repairing machinery prior to its sale so as to alter the VAT rate from the standard rate.
67. Deputy Martin Heydon asked the Minister for Finance the action his Department has taken and is continuing to take to put pressure on Irish banks to reduce the variable interest rates being charged to mortgage holders, which have not kept pace with reductions in European interest rates; and if he will make a statement on the matter. [15959/15]
View answerAs I stated previously in a reply to a question regarding this issue, the lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. I, as Minister for Finance, have no statutory role in relation to regulated financial institutions setting interest rates.
The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned. Each institution determines the rate it charges its customers, depending on a number of factors such as cost of funds and commercial considerations (such as competition, risk pricing and the impact on deposit rates).
The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations. However, the Central Bank has no statutory role in the setting of interest rates by regulated entities, apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997 and the requirement to be notified of penalty or surcharge interest imposed in respect of arrears.
Nonetheless, the issue of regulation of interest rates remains a policy area under active review and has been the subject of recent correspondence between the Department of Finance and the Central Bank. The current position is that the Central Bank does not have new proposals for the additional regulation of interest rates. However, as I have outlined in previous Parliamentary Questions, a former Deputy Governor indicated that, within its existing powers and through the use of persuasion, the Central Bank would continue to engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds and this is a course of action I expect the Central Bank to continually appraise.
The Deputy should be aware that the Governor of the Central Bank, Patrick Honohan, in his opening statement to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform last November stated that in Ireland, as in most advanced economies, it has long been understood that tight administrative control over the rates charged by banks would be counterproductive in ensuring a sufficient flow of properly priced credit on a lasting basis. Such control would strongly discourage new entrants when, in fact, ongoing competition in the banking sector will be crucial in ensuring that the economy is provided with efficient and cost effective banking services. In this regard, there have been some movements on mortgage interest rates of late by a number of institutions which suggest that the market may be entering a new and more competitive phase.
Furthermore, the Central Bank (Supervision and Enforcement Act) 2013 introduced changes to Section 149 of the Consumer Credit Act 1995 which regulates fees and charges in order to attract new entrants to the Irish banking sector and there is some evidence of improvements in the banking sector with a number of institutions introducing new products and adapting their business model. In the last 12 months there have been a number of new entrants to the Irish mortgage market bringing additional and welcome competition to this sector.
I should add that myself and the Governor of the Central Bank meet regularly, the latest of these meetings took place on 2 April. Among the items discussed was the issue of mortgage interest rates. The Governor provided an update on the ongoing work that he and his officials are carrying out on the issue of the standard variable rates charged by the lenders.
We noted that the SVRs charged in Ireland are higher than other euro area countries and have not fallen in line with ECB wholesale rates. The Central Bank will continue to research why this is the case and will publish results shortly. The Governor will update me on progress in due course.
68. Deputy Martin Heydon asked the Minister for Finance his plans to update retirement relief from capital gains tax (details supplied) to take account of the contribution of spouses to business; and if he will make a statement on the matter. [15961/15]
View answerI am advised by the Revenue Commissioners that a prerequisite to obtaining Capital Gains Tax retirement relief is that the individual who is disposing of land must have owned that land and used it for farming purposes for the period of 10 years prior to the disposal.
In the case referred to by the Deputy, the statement that the spouse owns part of the family land and is actively involved in the family farming business but is not named as a business partner is noted. It is not possible to give a definitive answer as to whether or not retirement relief would apply in this case. Full details of the case should be submitted to the Revenue District dealing with the tax affairs of the individuals concerned in order that further consideration can be given to the matter.
69. Deputy Pat Deering asked the Minister for Public Expenditure and Reform if he will provide a progress report on necessary work to (details supplied) in County Carlow; the work being planned; the progress that has been made; the amount the work will cost and if this money is available. [15931/15]
View answerFollowing initial repairs and security works, it is proposed to provide a new Sewage treatment plant and 3 Phase electricity system. A planning application will be lodged shortly for the treatment plant and the works to the electrical system will proceed over the next few months. The order of cost for these works is €70,000.
Further minor repairs to the doors/windows are ongoing.
70. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if he will provide, in tabular form, the funds he has allocated to each of the 16 Departments per Department in the years 2011 to 2014 and in 2015 to date. [15854/15]
View answerThe tables set out, for both gross and net voted expenditure, the amounts allocated to and spent by Ministerial Vote Group for the period 2011-2014 and for the first quarter of 2015, and the expenditure allocations for the full year 2015.
|
Gross Voted Expenditure |
2011 |
2012 |
2013 |
20141 |
20152 |
20153 |
|
|
€m |
€m |
€m |
€m |
€m |
€m |
|
Taoiseach |
178 |
152 |
146 |
142 |
170 |
38 |
|
Finance |
428 |
419 |
432 |
421 |
451 |
109 |
|
Public Expenditure & Reform |
905 |
987 |
912 |
953 |
1,017 |
227 |
|
Justice & Equality |
2,465 |
2,298 |
2,274 |
2,271 |
2,314 |
542 |
|
Environment, Community and Local Government |
1,597 |
1,252 |
1,149 |
844 |
1,329
|
130 |
|
Education & Skills |
9,193 |
8,945 |
8,772 |
8,847 |
8,947 |
2,192 |
|
Foreign Affairs & Trade |
728 |
717 |
694 |
676 |
687 |
137 |
|
Communications, Energy & Natural Resources |
446 |
406 |
394 |
416 |
415 |
85 |
|
Agriculture, Food & the Marine |
1,421 |
1,318 |
1,207 |
1,175 |
1,242 |
263 |
|
Transport, Tourism & Sport |
2,346 |
2,051 |
1,701 |
1,795 |
1,613 |
247 |
|
Jobs, Enterprise & Innovation |
845 |
851 |
792 |
743 |
790 |
160 |
|
Arts, Heritage & Gaeltacht |
277 |
274 |
264 |
268 |
277 |
60 |
|
Defence |
927 |
901 |
891 |
898 |
898 |
221 |
|
Social Protection |
20,917 |
20,735 |
20,248 |
19,765 |
19,378 |
4,889 |
|
Health |
14,361 |
14,232 |
14,092 |
13,741 |
12,677 |
3,368 |
|
Children & Youth Affairs |
214 |
422 |
407 |
997 |
1,027 |
265 |
|
Community, Equality & Gaeltacht Affairs |
113 |
n/a |
n/a |
n/a |
n/a |
n/a |
|
Total* |
57,362 |
55,958 |
54,373 |
53,950 |
53,231 |
12,933 |
*Rounding affects totals
1 Figures relating to 2014 are based on the provisional end-year data supplied by Government Departments. Audited outturn figures reflecting actual spend across all Government Departments will be published in the Appropriation Accounts 2014.
2 Revised Estimates for Public Services 2015. These amounts reflect the disestablishment of the HSE Vote.
3 end-March 2015 Exchequer Returns (Outturn Data)
|
Net Voted Expenditure |
2011 |
2012 |
2013 |
20141 |
20152 |
20153 |
|
|
€m |
€m |
€m |
€m |
€m |
€m |
|
Taoiseach |
170 |
143 |
139 |
136 |
163 |
36 |
|
Finance |
345 |
338 |
345 |
335 |
368 |
87 |
|
Public Expenditure & Reform |
782 |
864 |
788 |
809 |
874 |
196 |
|
Justice & Equality |
2,212 |
2,045 |
2,009 |
2,015 |
2,066 |
476 |
|
Environment, Community and Local Government |
1,549 |
1,182 |
1,053 |
758 |
1,281 |
126 |
|
Education & Skills |
8,249 |
8,023 |
7,860 |
7,942 |
8,012 |
1,990 |
|
Foreign Affairs & Trade |
682 |
668 |
644 |
627 |
640 |
127 |
|
Communications, Energy & Natural Resources |
207 |
168 |
156 |
185 |
173 |
31 |
|
Agriculture, Food & the Marine |
991 |
940 |
965 |
1,103 |
773 |
249 |
|
Transport, Tourism & Sport |
1,918 |
1,600 |
1,261 |
1,405 |
1,216 |
228 |
|
Jobs, Enterprise & Innovation |
789 |
801 |
741 |
693 |
740 |
148 |
|
Arts, Heritage & Gaeltacht |
271 |
268 |
257 |
259 |
273 |
58 |
|
Defence |
878 |
849 |
837 |
847 |
855 |
213 |
|
Social Protection |
13,318 |
13,882 |
12,858 |
11,820 |
11,068 |
2,787 |
|
Health |
12,898 |
12,738 |
12,715 |
12,399 |
12,221 |
3,230 |
|
Children & Youth Affairs |
210 |
410 |
402 |
974 |
1,000 |
260 |
|
Community, Equality & Gaeltacht Affairs |
105 |
n/a |
n/a |
n/a |
n/a |
n/a |
|
Total* |
45,573 |
44,917 |
43,029 |
42,307 |
41,724 |
10,249 |
*Rounding affects totals
1 Figures relating to 2014 are based on the provisional end-year data supplied by Government Departments. Audited outturn figures across all Government Departments will be published in the Appropriation Accounts 2014.
2 Revised Estimates for Public Services 2015
3 end-March 2015 Exchequer Returns (Outturn Data)
71. Deputy Tom Fleming asked the Minister for Agriculture, Food and the Marine the procedures that must be undertaken for a new entrant milk supplier; and if he will make a statement on the matter. [15851/15]
View answerIndividuals intending to commence milk production should consult with an agricultural adviser or their prospective milk purchaser for information regarding the procedures to be followed before supplying milk. Milk purchasers are aware of the Department’s requirements in relation to food hygiene etc and will apprise prospective suppliers accordingly.
