Wednesday, 6 May 2015

Written Answers Nos. 110-132

State Pension (Contributory) Applications

Questions (110)

Bernard Durkan

Question:

110. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of applications for the State pension (contributory) received by her Department in the course of the past 12 months, to date; the number approved and rejected; the number of cases in respect of which the application were automatically tested for the State pension (non-contributory); the number of cases in respect of which a whole new application was required; and if she will make a statement on the matter. [17843/15]

Written answers

Tánaiste and Minister for Social Protection

The table shows the total number of state pension (contributory) applications received from January 2014 to April 2015, together with a breakdown of decision outcomes during that period as follows:

Period	Claims received	Claims awarded	Claims disallowed
Jan– Dec 2014	40,212	27,591	8,205
Jan – April 2015	10,795	6,299	2,572

State pension (contributory) is an insurance based payment, paid to people from the age of 66 who satisfy a number of qualifying conditions. It is not a means-tested payment. State pension (non-contributory) is a means-tested payment for people aged 66 and over who do not qualify for a state pension (contributory), or who qualify for a reduced contributory pension based on their social insurance record.

The notification of a decision by a Deciding Officer to disallow a claim for state pension (contributory), where the qualifying conditions are not met, provides the claimant with the option to appeal the decision and advises them of the option to apply for the alternative means tested state pension (non-contributory) pension. Where the claimant wishes to apply for state pension (non-contributory) pension they are required to complete and return a SPNC1 form, which captures details of the income and assets the claimant holds and, where applicable, the income and assets of their dependent spouse, civil-partner or cohabitant.

This information is required to allow a Deciding Officer to consider their entitlement for pension and the applicant will be notified of the Deciding Officer's decision without delay.

Social Welfare Appeals

Questions (111)

Bernard Durkan

Question:

111. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of oral hearings that have taken place in the past twelve months, in respect of the various payments made by her Department to social welfare recipients; the number of cases where the original decision was overturned, arising from the hearing; and if she will make a statement on the matter. [17844/15]

Written answers

Tánaiste and Minister for Social Protection

I am advised by the Social Welfare Appeals Office that legislation provides that where an Appeals Officer is of the opinion that an appeal can be properly determined without an oral hearing, he or she may determine the appeal summarily on the basis of the documentary evidence provided.

If an appellant requests an oral hearing, that request will generally be granted unless the Appeals Officer considers that a positive decision, based on the documentary evidence presented, can be given without recourse to an oral hearing. However, in some cases, where there is clearly nothing to be gained from an oral hearing, for example when a decision relates to a question of social insurance contributions or means which is not disputed, the Appeals Officer may decide the appeal on a summary basis.

As reported in the 2014 Annual Report of the Social Welfare Appeals Office, 24,081 appeals were finalised by appeals officers in 2014, and of these 7,523 (31.2%) appeals were decided following an oral hearing. Of these 4,868 (64.7%) had a successful outcome for the appellant while 2,655 (35.3%) were disallowed. 16,558 (68.8%) appeals were decided by summary decision and of these 7,462 (45.1%) had a successful outcome for the appellant.

Of the 6,456 appeals decided by appeals officers to date in 2015, 2,316 (35.87%) appeals were decided following an oral hearing. Of these 1,464 (63.22%) had a successful outcome for the appellant while 852 (36.78%) were disallowed. 4,140 (64.13%) appeals were decided by summary decision and of these 1,829 (44.18%) had a successful outcome for the appellant.

While it appears that there is a proportionately higher rate of success following oral hearing this is not surprising given that the Appeals Officer who convenes the hearing is the same Appeals Officer who decided that the case could not be decided fairly on a summary basis. The reasons for this will include the level of complexity of the issues, conflicts in the evidence, or the need for elaboration by the appellant on the grounds of appeal.

Social Welfare Benefits

Questions (112)

Bernard Durkan

Question:

112. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which she remains satisfied that one parent families receive a combination of payments amounting to at least as much as they previously qualified for under the One Parent Family Allowance; and if she will make a statement on the matter. [17845/15]

Written answers

Tánaiste and Minister for Social Protection

Almost 70,000 lone parents are currently supported by the one-parent family payment (OFP) scheme at an estimated cost to the Department of approximately €607 million in 2015. However, despite considerable investment, the scheme has not succeeded in preventing lone parents from being significantly more at risk of consistent poverty than the population as a whole.

The purpose of the phased OFP scheme age change reforms that were introduced in the Social Welfare and Pensions Act, 2012, is to reduce long-term social welfare dependency and poverty among lone parents, and to ensure that they have improved access to the Department's range of education, training, and employment support programmes, in order to assist them in securing employment and financial independence.

The final phase of the OFP scheme age change reforms will take place on 2 July, 2015, when the maximum age limit of the youngest child at which an OFP recipient's payment ceases will be reduced to 7 years for all recipients.

Approximately 29,400 OFP recipients will transition from the scheme on that day. These customers will be supported by the Department to transition to an alternative income support payment – as appropriate.

Approximately 20,000 affected lone parents will experience no income changes or will gain after the transition. The gain for individuals in this instance will be in the range of €10 to €150 per week, depending on their level of earnings and, also, on the number of children that they have.

The remaining lone parents are in employment. Approximately 6,000 of these will have an immediate incentive to increase the number of hours that they work to 19 in order to claim the family income supplement (FIS) payment and the new back to work family (BTWFD) dividend. These individuals will then be financially better off than their current position.

Disability Allowance Data

Questions (113)

Bernard Durkan

Question:

113. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of applications for Disability Allowance and Invalidity Pension received in her Department, in each of the past five years to date; the numbers approved, rejected or pending; and if she will make a statement on the matter. [17846/15]

Written answers

Tánaiste and Minister for Social Protection

The information requested by the Deputy is detailed in the tabular statements.

Disability Allowance

Year	Registered	Awarded	Rejected	Pending at period end
2010	21,409	8,306	10,316	6,880
2011	24,264	9,246	14,116	6,999
2012	25,887	10,400	14,519	7,775
2013	20538	12497	14,691	5,022
2014	21,071	13,876	12,621	6,058
31 March 2015	5,252	4,112	4,925	4,489

Invalidity Pension

Year	Registered	Awarded	Rejected	Pending at period end
2010	8,774	3,597	3,677	2,701
2011	14,621	2,657	5,945	6,814
2012	11,510	6,352	10,721	3,662
2013	9,640	9,494	8,546	2,013
2014	9,240	7,018	5,496	2,034
31 March 2015	2,272	1,904	1,439	1,680

Deserted Wife's Benefit Data

Questions (114)

Bernard Durkan

Question:

114. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of recipients of Deserted Wives Benefit eligible for receipt of payment in the past five years, to date; the extent to which their entitlement has changed in the period in question; and if she will make a statement on the matter. [17847/15]

Written answers

Tánaiste and Minister for Social Protection

The Deserted Wife's Benefit scheme has been closed since 1997. The number of recipients eligible for receipt of payment in the past five years is set out in the table. There has been no change in the eligibility criteria for the scheme in that time.

2010	2011	2012	2013	2014
8,372	8,071	7,753	7,457	7,228

Social Welfare Schemes

Questions (115)

Bernard Durkan

Question:

115. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which the various schemes available to her Department are making positive and beneficial impact on the numbers of young persons who are unemployed; her future expectations in this regard; and if she will make a statement on the matter. [17848/15]

Written answers

Minister of State at the Department of Social Protection

The Government's primary strategy to tackle youth unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people.

However, the Government recognises that as the recovery takes hold, there is a need for additional measures to ensure that as many as possible of the jobs created are taken up by jobseekers and young jobseekers in particular. This is the rationale behind the Government's Pathways to Work strategy and the Youth Guarantee.

The Youth Guarantee sets a medium-term objective of ensuring that young people receive an offer of employment within four months of becoming unemployed. The main plank of the guarantee is assistance to young people in finding and securing sustainable jobs. For those who do not find employment, additional offers are provided for. Most such offers (over 70%) are in further education or training. Others are in community-based employment programmes such as CE, Gateway and Tús, or through the JobsPlus employment subsidy for private employment.

Reflecting the impact of government policy, and the overall improvement in the labour market, youth unemployment continues to fall (with a rate of 21.1% in March 2015 estimated by Eurostat, as compared to 25.9% in March 2014 and a peak of over 30% in 2012).

Pathways to Work 2014 targets with respect to the Youth Guarantee have largely been achieved. In addition it the following targets in Pathways to Work 2015 have been or are expected to be met:

- Roll out the First Steps developmental internships programme for 1500 – 2000 young people.

- Introduce JobsPlus for Youth

- Allocate 1,000 places on the Tús scheme to young people.

- Introduce a pilot programme to support young unemployed people to take up opportunities under schemes such as Your First EURES Job.

- Ring-fence a minimum of 2,000 training places for under-25s by the Department of Education and Skills, under a follow-up to the Momentum programme.

I am satisfied these measures, together with the continuing economic recovery, are having a positive and beneficial impact on young people, and will enable the young unemployed to avail of employment opportunities now and into the future.

Back to Work Allowance

Questions (116)

Bernard Durkan

Question:

116. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of applications for Back to Work Allowance received in her Department in the past four years, to date; the numbers approved and rejected in the same period; and if she will make a statement on the matter. [17849/15]

Written answers

Minister of State at the Department of Social Protection

Schemes such as the Back to Work Enterprise Allowance (BTWEA) and the Short Term Enterprise Allowance (STEA) assist those on certain social welfare payments who wish to become self-employed.

The BTWEA is designed to provide a monetary incentive for people who are dependent on certain social welfare payments to develop a business, while allowing them to retain a reducing proportion of their qualifying social welfare payment over two years from time of approval (100% in year one and 75% in year two). The STEA provides immediate access to those who have lost their jobs and qualify for jobseeker's benefit and wish to set up a business. Payment under the scheme is at the same rate and for the same duration as their entitlement to jobseeker's benefit.

Information on the number of applications approved for payment under the two schemes for the years 2011 to end of March 2015 is set out in the table. The Department does not collect information on the number of applications received or rejected.

Number of Applicants in Payment 2011-2015

Description of Scheme	2011 (end Dec)	2012 (end Dec)	2013 (end Dec)	2014 (end Dec)	2015 (end Mar)
Back To Work Enterprise Allowance	10,751	10,811	10,098	11,167	11,372
Short Term Enterprise Allowance	1,294	1,066	583	479	465
Total	12,045	11,877	10,681	11,646	11,837

Unemployment Benefits Payments

Questions (117)

Bernard Durkan

Question:

117. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of persons currently in receipt of unemployment assistance or unemployment benefit in County Kildare; the extent to which such numbers have fluctuated in the past four years; and if she will make a statement on the matter. [17850/15]

Written answers

Tánaiste and Minister for Social Protection

The information requested by the Deputy at the end of December in each of the years 2011 to 2013 and at the end of March 2015 is detailed in the tabular statement.

It should be noted that the county level statistics indicate the number of people signing-on for payment at an office located in the county indicated. As the catchment area of many local offices cross county borders this data is not equivalent to the number of people residing in each county who are signing-on.

Recipients of Jobseeker's Allowance and Jobseeker's Benefit in County Kildare at the end of December 2011, 2012, 2013, 2014 and at 31 March 2015

	Jobseeker's Allowance	Year on Year Variance	Jobseeker's Benefit	Year on Year Variance	Total	Year on Year Variance
2011	10,983		4,041		15,024
2012	11,823	7.6%	3,560	-11.9%	15,383	2.4%
2013	12,210	3.3%	2,515	-29.4%	14,725	-4.3%
2014	11,219	-8.1%	2,141	-14.9%	13,360	-9.3%
31 March 2015	10,462	-6.7%	2,215	3.5%	12,677	-5.1%

Community Welfare Services Provision

Questions (118)

Bernard Durkan

Question:

118. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which community welfare offices are located throughout County Kildare, in such a manner as to ensure convenience of access for the general public, within reasonable travelling distance; and if she will make a statement on the matter. [17851/15]

Written answers

Tánaiste and Minister for Social Protection

Community Welfare Services in the South Kildare are rationalised to three main centres; Naas, Newbridge and Athy. The service is accessible by telephone call, followed up by appointments and home visits as required. Telephone lines are open at all times and all clients will have their call returned within one working day. This eliminates the need to travel to offices/health centres and wait in lengthy queues. Emergencies are prioritised and dealt with in a timely manner.

In North Kildare Community Welfare Services are based in Maynooth and Celbridge Health Centres with an outreach service available in Kilcock Health Centre. In Maynooth two-hour clinics are held on three mornings per week, in Celbridge two-hour clinics are held two mornings per week and an outreach clinic is held in Kilcock one morning per week. If a person is unable to travel to one of the clinics, for example due to illness, a phone service is available for the client to contact the Community Welfare Service and if required, a member of staff can arrange to visit the client's home.

Contact details for the service in South Kildare are as follows:

Area	Phone Number
Athy – Castledermot	045 – 887831
Dunlavin – Ballitore – Baltinglass	045 – 887829
Monasterevin – Rathangan – Kildare	045 – 887830
Newbridge – Curragh – Suncroft	045 – 887821
Clane – Kilmeague – Prosperous – Robertstown - Allenwood	045 – 887823
Naas – Caragh – Sallins – Johnstown – Kill - Kilcullen	1800 - 383800
Fax Number for Referrals	045 - 887845
Postal Address for all Referrals	P.O. Box 700 Naas Co. Kildare

Current Service Availability: North Kildare

Clinic location	Opening times
Maynooth Health Centre	Tuesday 10.00 – 12.00pm Wednesday 10.00 -12.00 pm Thursday 10.00 – 12.00 pm
Celbridge Health Centre	Monday 10:00 – 12:00pm Thursday 10:00 – 12:00pm
Kilcock Health Centre (Outreach Clinic)	Tuesday 10:00- 12:00pm

Youth Unemployment Measures

Questions (119)

Bernard Durkan

Question:

119. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which her Department continues to be in the position to avail of European Union support to alleviate youth unemployment; and if she will make a statement on the matter. [17852/15]

Written answers

Tánaiste and Minister for Social Protection

The Government's primary strategy to tackle youth unemployment is through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people.

In addition, there is a wide range of employment services, along with programmes of training and education, work experience, and recruitments supports that address the particular labour market issues facing young people. These are set out in detail in Ireland's implementation plan for the EU Recommendation on a Youth Guarantee, and involve other Departments – most notably the Department of Education and Skills – as well as the Department of Social Protection.

In support of the recommendation for a Youth Guarantee, the EU council agreed that a total of €6bn would be earmarked within EU funds to support approved Youth Employment Initiative projects over the course of the seven year Multi-Annual Financial Framework (MFF) 2014-2020. This €6bn comprises €3bn from within the existing European Social Fund (ESF) and an additional €3bn in the form of Youth Employment Initiative (YEI) funding.

The EU Institutions have now agreed that YEI funding should be reserved for use in those regions where youth unemployment levels exceeded 25% during the reference year of 2012 (since extended to include regions where youth unemployment was over 20% in 2012 in Member States where youth unemployment had risen by more than 30% over the previous year). Both regions within Ireland satisfy the original 25% threshold. Ireland's allocation is €68.14 million.

The YEI fund is to be allocated to approved projects on a proportional basis. Expenditure on ESF actions will have to be matched by national funds, in accordance with normal structural funds rules. Member States can then access a share of the additional €3 billion. Where ESF-supported projects are eligible for YEI as well, the YEI funding will be equal to and additional to the ESF support.

In 2014 alone, the costs for implementing the programmes for the young unemployed in Ireland's Youth Guarantee Implementation Plan were €336 million, or €528 million if the costs of PLC courses and the apprenticeship system are included. Similar costs are likely be incurred, on an annual basis. These costs, in the first instance, are borne by the Irish Exchequer. It is anticipated that a sufficient share of this expenditure will meet the relevant eligibility criteria, to allow a full draw-down of Ireland's YEI allocation and the related ESF funding.

Question No. 120 answered with Question No. 80.

Social Welfare Benefits Eligibility

Questions (121)

Mary Lou McDonald

Question:

121. Deputy Mary Lou McDonald asked the Tánaiste and Minister for Social Protection if it is the policy of her Department to withhold social welfare payments, such as JobSeeker's Allowance, to non-Irish born residents until they have completed English language courses; if it is the policy of her Department to make attending English language courses a condition of receiving a JobSeeker's Allowance; and if so, the legislative and / or policy basis for such decisions. [17856/15]

Written answers

Tánaiste and Minister for Social Protection

Jobseeker's Allowance is payable to persons who are aged over 18 and under 66 years of age and who are:

- Unemployed;

- Capable of work;

- Available and genuinely seeking work;

- Satisfy a means test; and

- Meet the Habitual Residence Condition.

It is not conditional for a person to have English language proficiency in order to receive Jobseekers Allowance. However, in some instances as part of the completion of an agreed personal progression plan (PPP) with a Departmental case officer, it may be appropriate for a jobseeker to undertake English language training in order to enhance their prospects of securing employment.

JobsPlus Scheme

Questions (122)

Brendan Smith

Question:

122. Deputy Brendan Smith asked the Tánaiste and Minister for Social Protection if a person, who is a participant on a JobBridge scheme in a voluntary secondary school, may subsequently participate on the JobsPlus scheme in the same school; if the JobsPlus scheme is confined to fee-paying schools only; if State-funded schools are excluded from this particular scheme; and if she will make a statement on the matter. [17869/15]

Written answers

Minister of State at the Department of Social Protection

JobsPlus provides a direct monthly financial incentive to employers who recruit employees from the Live Register and those transitioning into employment. It provides employers with two levels of payment - €7,500 or €10,000 over two years – paid in monthly instalments provided the employment is maintained. The rate of payment depends on the length of time the person is unemployed. In April, the Department disbursed some €1.79 million to 3,437 employers in respect of 4,670 employees being supported by JobsPlus.

Persons pursuing internships under JobBridge - who were in receipt of a qualifying payment prior to their internship - may be employed directly from the scheme once the required qualifying period and conditions are satisfied. An employer and employee should apply online as normal in these circumstances.

An employer deemed as a public service body is not eligible for the Incentive. A person or body funded by the Oireachtas or by the Central Fund and in respect of which a public service pension scheme exists or may be made is defined as a public service body. This includes schools, boards of management and education providers wholly or partly funded by the Department of Education and Skills.

Public Sector Staff Recruitment

Questions (123)

Richard Boyd Barrett

Question:

123. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection if she will provide details of recruitment under the aegis of her Department to the public sector since the partial lifting of the embargo on recruitment. [18256/15]

Written answers

Tánaiste and Minister for Social Protection

The information requested by the Deputy in relation to recruitment since the partial lifting of the embargo into the Department of Social Protection and the Agencies under the remit of the Department is outlined in the table.

The Agencies that operate under the aegis of my Department are the Pensions Authority, the Citizens Information Boards (CIB) and the Pensions Ombudsman.

Department/Agency	Grade	Number Recruited
Department of Social Protection	Permanent Clerical Officer	23
	*Temporary Clerical Officer	168
	Medical Assessor	4
Citizens Information Board	Permanent Chief Executive	1
	Temporary Grade III Accounts Assistant	1
	Temporary Grade IV Senior Managers Administrator	1
	Temporary Grade III ICT Administrator	1
Pensions Authority	Nil Recruitment	Nil
Pensions Ombudsman	Nil Recruitment	Nil

*Since 14th October 2014, 168 Temporary Clerical Officers were recruited. The majority are of the contracts are of a short duration. There are 152 Temporary Clerical Officers currently serving in the Department.

Mortgage Repayments

Questions (124)

Michael McGrath

Question:

124. Deputy Michael McGrath asked the Minister for Finance the amount in legal costs that Allied Irish Banks spent in 2013 and in 2014, in pursuing persons who had defaulted on their house loans; the top five highest amounts paid out to legal firms for that work in 2014 only; and if he will make a statement on the matter. [17186/15]

Written answers

Minister for Finance

I have been informed by AIB that for commercial confidentiality reasons the bank does not publicly disclose the details of contracts with individual external service providers. The bank manages legal fees within its commercial business requirements and operating costs.

Fuel Laundering

Questions (125)

Seamus Kirk

Question:

125. Deputy Seamus Kirk asked the Minister for Finance his plans to introduce a new dye for agricultural diesel, in the effort to combat diesel laundering; and if he will make a statement on the matter. [17189/15]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that, following a joint process, Revenue and HM Revenue and Customs identified a new and more effective product to mark rebated fuels in Ireland and the UK. The new marker was introduced in each jurisdiction at the end of March this year, following consultation with the oil industry, and is used to mark all gas oil and kerosene to which a reduced rate of mineral oil tax applies.  The introduction of the new marker, which is used in addition to existing dyes, provides a significant boost in the fight against illegal fuel laundering in both jurisdictions.  

IBRC Operations

Questions (126)

Billy Kelleher

Question:

126. Deputy Billy Kelleher asked the Minister for Finance prior to the appointment of a person (details supplied) to investigate the Siteserv sale and report to him and the Houses of the Oireachtas, if he requested information on the number of liquidations, receiverships and examinerships that were carried out by that person that Arthur Cox Solicitors had acted on for KPMG in the period 2007 to 2015; if so, the liquidations, examinerships and receiverships that Arthur Cox acted on for KPMG; and if he will make a statement on the matter. [17205/15]

Written answers

Minister for Finance

Officials from my Department spoke with the Special Liquidators of IBRC to discuss the scope of the transaction review, however, matters surrounding Arthur Cox Solicitors role in acting on liquidations, receiverships and examinerships for KPMG in the period 2007 to 2015 were not discussed.

Tax Code

Questions (127)

Anthony Lawlor

Question:

127. Deputy Anthony Lawlor asked the Minister for Finance the steps he is taking to ensure that the 4,000 Standard Life shareholders, who opted to receive their money from the sale of the business as a capital payment, will not suffer a financial loss or be subject to tax as a result of significant postal delays, through no fault of their own; if he will liaise with the Revenue Commissioners, and introduce a measure similar to that undertaken in 2014, in a similar incident with Vodafone shareholders; and if he will make a statement on the matter. [17216/15]

Written answers

Minister for Finance

I understand that the UK company, Standard Life plc, has offered its shareholders the option of having "return of value" payments due to them treated as income or capital, with treatment as income being the default position in the absence of shareholders choosing an option within a specified time which has now elapsed. From an Irish tax perspective, the position is that if the Standard Life return of value payment is received as income by an Irish resident taxpayer it will be taxed under Income Tax rules. If it is received as capital it will be taxed under the Capital Gains Tax rules.

In last year's Finance Act, I included provisions allowing for a measure of tax relief to the many thousands of Irish shareholders with a small shareholding in Vodafone plc who inadvertently found themselves subject to an unintended liability to income tax, PRSI and USC rather than a nil capital gains tax liability arising from a return of value payment from that company. I did this because the shareholding of very many of those individuals arose originally from their investment in Eircom plc and, as a result of which investment, they continue to carry capital losses. I considered, given the particular background in this case, that to leave those shareholders with income tax and other liabilities on foot of a decision they inadvertently made or did not make at all would have been inequitable.  This particular background is not a feature of the Standard Life return of value case.

The fact that notifications of the options made by individuals in the Vodafone case last year were delayed in the post beyond the deadline date in that case or were otherwise not dealt with by the company as shareholders would have wished were not factors in my decision to provide the relief, the reason for which I have outlined above.

I will continue to be advised by my officials, in liaison with the Revenue Commissioners, in relation to the issues raised by the Deputy in the case of the Standard Life return of value. However I am not convinced of the appropriateness of the State, as a matter of practice, addressing by way of legislation the difficulties of shareholders in commercial public companies arising from a failure either to make decisions in relation to their commercial investments, the timely communication of decisions or arising from problems caused by the administrative arrangements put in place by those commercial companies.

Banking Sector

Questions (128)

Pearse Doherty

Question:

128. Deputy Pearse Doherty asked the Minister for Finance the role Deutsche Bank is playing in advising Permanent TSB on the sale of assets. [17268/15]

Written answers

Minister for Finance

I have been informed by Permanent TSB that it has not engaged or retained Deutsche Bank to act as its advisor in relation to either of its recently announced or pipeline deleveraging transactions. For completeness Permanent TSB has informed me that Morgan Stanley were appointed as advisor in relation to the sale of Springboard Mortgages, UK loan assets and Irish CRE assets. 

The Deputy may be aware that Deutsche Bank are an advisor to Permanent TSB on its recent successful capital raise.  Details of their role are outlined in the recently published prospectus which can be accessed via the link for "Equity Prospectus - April 2015" on this page: http://www.permanenttsbgroup.ie/investor-relations/reports-and-presentations/other-documents/2015.aspx

State Banking Sector

Questions (129)

Pearse Doherty

Question:

129. Deputy Pearse Doherty asked the Minister for Finance the safeguards in place to prevent a conflict of interest arising in State owned banks, where a company is hired to provide advice on the management and disposal of assets; and if he will make a statement on the matter. [17269/15]

Written answers

Minister for Finance

Officials in my Department have received the following confirmation from the banks in response to the Deputy's question.

AIB:

AIB has a policy in place with regards to appointment of advisors. Advisors are selected based on their knowledge and experience in relation to the type of disposal. As part of the appointment process advisors are required to declare upfront any conflict of interest to AIB to ensure none exists.

ptsb:

The Group Procurement Team oversee the appointment of all 3rd party service providers. If there is a need for ptsb Group to seek external assistance, the Procurement Team will work with the business area to understand the skill requirement and identify potential service providers. A Request for a Proposal (RFP) is then issued to the 3rd parties and they are invited to respond with a comprehensive proposal that outlines how they will address the needs of the Group. All RFPs include the Group s Conflict of Interest Policy and requires all third parties to abide by the conditions outlined within.

As part of the RFP process, the Group defines a set of criteria against which each respondent is assessed; this ensures an unbiased evaluation of all proposals received.

Group Procurement maintain a full list of service providers and a Conflict of Interest Log, both of which are reviewed on a regular basis.

Tax Code

Questions (130)

Pearse Doherty

Question:

130. Deputy Pearse Doherty asked the Minister for Finance if he will provide, in tabular form, the full details of tax reliefs and incentives available specifically to the aircraft leasing industry; when each measure was introduced; the cost to the Exchequer of each provision; and the total cost. [17312/15]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that there are no specific tax reliefs for the aircraft leasing industry. However, information is available on tax payments from the industry for 2005 to 2014. (See table).

The following tax treatment applies to the industry:

Corporation Tax

A company carrying on a trade of aircraft leasing would, similarly to any other company carrying on a trade, be charged to corporation tax in respect of its trading income at a rate of 12.5%. When computing its profits for an accounting period, any company is entitled to claim capital allowances in respect of the wear and tear on plant and machinery owned by it and in use for the purposes of its trade at the end of that accounting period. In the case of an aircraft leasing company, this means that the company could claim a capital allowance in respect of the cost of acquiring the aircraft. The allowance is granted over a period of 8 years at a rate of 12.5% per annum.

Stamp Duty

The sale, transfer or other disposition of an aircraft is exempt from Stamp Duty as is the issue, transfer or redemption of an "Enhanced Equipment Trust Certificate". These certificates are a mechanism by which leasing companies raise the necessary finance to acquire aircraft for their leasing fleet.

VAT

Irish VAT is not charged on lease payments in respect of an aircraft where the aircraft is effectively used wholly outside the EU. The leasing of aircraft to qualifying international airlines is subject to VAT at the zero rate.

Cost to the Exchequer

There is no overall costing of the value of the Stamp Duty exemption referred to above. The sector is in a net repayment position in respect of VAT as a result of the zero rating of services.  

Tax Payments from the aircraft leasing sector 2005 to 2014

	VAT*	Employer's PAYE	Income Tax	Corporation Tax	Capital Gains Tax	Total
	€m	€m	€m	€m	€m	€m
2005	-6	9	0	4	0	7
2006	-10	12	0	8	0	10
2007	-13	16	1	27	1	32
2008	-11	24	0	22	0	35
2009	-19	21	0	19	0	21
2010	-16	25	0	16	0	25
2011	-19	32	0	20	0	33
2012	-22	37	0	36	0	51
2013	-16	51	0	29	0	64
2014 (provisional)	-15	55	0	23	0	63

*The Aircraft Leasing Sector was in a net repayment position in respect of VAT for each year.

IBRC Operations

Questions (131)

Michael McGrath

Question:

131. Deputy Michael McGrath asked the Minister for Finance the payment, in cents per share, made to shareholders in Siteserv, as a result of the €5m distribution as part of the write-off of €10 million by the Irish Bank Resolution Corporation; and if he will make a statement on the matter. [17371/15]

Written answers

Minister for Finance

Neither I nor officials in my Department hold a record of the list of shareholders in Siteserv at the time of the transaction (other than the partial summary of the top 10 shareholders of Siteserv as at December 9, 2011, already released under Freedom of Information and available on the Department of Finance website) nor the details of the payment made to shareholders in cents per share.

However, I understand the Special Liquidator is coordinating access to the share register, which is available to view at the offices of Computershare, who provided share registration services to Siteserv. I would suggest that the Deputy contact the Special Liquidator directly to access this information.

Universal Social Charge Application

Questions (132, 170, 171)

Michael McGrath

Question:

132. Deputy Michael McGrath asked the Minister for Finance the cost of reducing the current universal social charge rates to 1%, 3% and 6%, respectively, for pay-as-you-earn and self-employed earners, while maintaining the current bands and the 8% rate; and if he will make a statement on the matter. [17415/15]

Michael McGrath

Question:

170. Deputy Michael McGrath asked the Minister for Finance the cost of reducing the current 7% rate of Universal Social Charge by 0.5%, 1%, 1.5% and 2%; and if he will make a statement on the matter. [17757/15]

Michael McGrath

Question:

171. Deputy Michael McGrath asked the Minister for Finance the current number of income earners who are exempt from paying Universal Social Charge; the level to which the threshold would need to be raised to exempt a total of 400,000 and 500,000 persons respectively from the Universal Social Charge; and if he will make a statement on the matter. [17758/15]

Written answers

Minister for Finance

I propose to take Questions Nos. 132, 170 and 171 together.

In relation to the first and second questions, I am informed by the Revenue Commissioners that they have published a post-Budget 2015 Ready Reckoner on the their statistics website at:-http://www.revenue.ie/en/about/statistics/index.html. The Ready Reckoner, accessible at:-http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf,  provides indicative costings in respect of certain changes to Income Tax and Universal Social Charge (USC) rates in the "Income Tax and Universal Social Charge" section.

While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro-rata basis with those displayed in the Ready Reckoner. For example, the Ready Reckoner shows the impact of reducing the lowest USC rate from 1.5% to 0.5% as having an estimated cost of €235 million in a full year. The impact of reducing the rate from 1.5% to 1.0% as suggested by the Deputy is around half of this, approximately €118 million.

These figures are estimates from the Revenue tax forecasting model using latest actual data for the year 2012, adjusted as necessary for income, self-employment and employment trends in the interim. They are estimated by reference to 2015 incomes and are provisional and may be revised.

In relation to the third question, I am informed by the Revenue Commissioners that the number of income earners currently exempt from paying the Universal Social Charge is estimated to be in the order of 648,700, already in excess of the numbers noted by the Deputy.