Written Answers Nos. 254 - 270
255. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection the steps the Pension Authority has taken to ensure that the resolution to the Irish Airlines (General Employees) Superannuation Scheme pension dispute, which involved the winding up of the supplementary pension scheme 2, has been undertaken. [18599/15]
View answerThe resolution of funding difficulties in pension schemes and any implementation of agreed solutions are primarily a matter for the Trustees, the companies participating in the scheme and the scheme members. From a regulatory perspective the Trustees of pension schemes must comply with the provisions in the Pensions Act which, among other things, sets down certain requirements in relation to scheme funding and any wind up of pension schemes. The Pensions Authority is responsible for ensuring scheme compliance with the provisions of the Pensions Act. Should the Pensions Authority become aware that Trustees are not in compliance with the provisions of the Act, it has the power to investigate the state and conduct of a pension scheme.
Concerns regarding the funding of the scheme should be brought to the attention of the Pensions Authority. Scheme members should contact the trustees of the scheme to discuss any other issues they may have.
256. Deputy Lucinda Creighton asked the Tánaiste and Minister for Social Protection further to Parliamentary Question No. 93 of 15 April 2015, if she will provide, in tabular form, the number of cases where young persons leaving care received payment of deposits and rent in advance, for each quarter from 2012 to date; and if she will make a statement on the matter. [18602/15]
View answerThe reduced rates of jobseeker's payments and supplementary welfare allowance for persons aged under 26 do not apply where such persons were in the care of the Health Service Executive during the year prior to their 18th birthday.
The Department is also actively engaging with Tusla and non-Government organisations in providing the necessary support to vulnerable young people leaving care who are experiencing homelessness or in insecure situations. These cases are managed on a case by case basis and the payment of deposits and rent in advance is considered. This form of assistance is very important to those on low incomes who are at risk of, or who are homeless, or who rely on the private rented market to meet their housing needs.
Statistics are not maintained on the numbers of Exceptional Needs Payments (ENPs) made for the purposes of rent deposits or rent in advance for young persons leaving care. The numbers of ENPs for rent deposits and rent in advance for all recipients under the age of 26 are provided in the following tabular statement.
Tabular Statement:
ENPs paid in respect of Rent in Advance and Rent Deposits for each quarter in the period Jan 2012-end March 2015 to persons aged under 26.
|
Year |
Period |
Rent in Advance |
Rent Deposits |
|
2015 |
Q1 |
175 |
|
|
Q4 |
2 |
167 |
|
|
Q3 |
1 |
254 |
|
|
Q2 |
225 |
||
|
2014 |
Q1 |
1 |
210 |
|
Q4 |
3 |
273 |
|
|
Q3 |
1 |
341 |
|
|
Q2 |
4 |
389 |
|
|
2013 |
Q1 |
2 |
362 |
|
Q4 |
1 |
400 |
|
|
Q3 |
4 |
467 |
|
|
Q2 |
6 |
456 |
|
|
2012 |
Q1 |
6 |
499 |
|
Total |
31 |
4,218 |
257. Deputy Róisín Shortall asked the Tánaiste and Minister for Social Protection the consideration of or stipulation given to the providers of school meals in respect of the nutritional value and calorie content of the foods they provided; and in view of the significant problem of childhood obesity, her plans in this regard. [18610/15]
View answerThe school meals programme provides funding towards the provision of food services to some 1,600 schools and organisations benefitting over 205,000 children. €39 million has been provided for the scheme in 2015, an increase of €2 million over that provided last year.
The aim of the scheme is to provide regular nutritious food to children who are unable, by reason of lack of food, to take full advantage of the education provided for them. Applicants to the scheme are directed to the Department’s website which states that funding is for healthy nutritious food only and must not be spent on items such as fizzy drinks or fast food. Example of food items to be provided under the various food clubs is also outlined. Applicants are informed that information regarding healthy eating for children is also available from the Health Promotion Unit of the Health Services Executive and in ‘A Good Practice Guide for School Food Initiative’ produced by the organisation Healthy Food for All. Participating schools/organisations end-of-year accounts and receipts are inspected by the Department to ensure that they are complying with this requirement.
258. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection if she will provide a timeframe for the review of the insolvency payments scheme, specifically the promised review into the eligibility of former employees of companies which have been informally wound up without a liquidator or receiver to apply for payment from the scheme, in view of the fact that such a review has been promised since 2013 and no results have been forthcoming; and if she will make a statement on the matter. [18623/15]
View answer260. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection if progress has been made on the review of eligibility for the insolvency payments scheme; and if she will make a statement on the matter. [18643/15]
View answerI propose to take Questions Nos. 258 and 260 together.
My Department is continuing to review the position to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up process and who owe monies to their employees.
My Department is consulting with a range of interested parties including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners to establish what, if anything can be done to progress payments to individuals in these situations. To date officials from my Department have had one formal meeting with the various parties mentioned above in connection with this issue and continue to engage with all relevant parties to try to progress the matter.
However, I am not in a position to indicate when this review will be completed.
259. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection in view of the review of the insolvency payments scheme not having being completed to date, the options available to a person (details supplied) in County Dublin to access their entitlements. [18624/15]
View answerThe review of the Insolvency Payments Scheme to establish what, if anything, can be done to progress payments to individuals in situations where employers cease trading without engaging in a formal winding-up and who owe monies to employee(s) is continuing.
It is the responsibility of the employer to pay statutory redundancy entitlements to all its eligible employees. Where an employer can prove to the satisfaction of my Department that it is unable to pay the statutory redundancy to eligible employees my Department will make lump sum payments directly to the employees from the Social Insurance Fund and will then seek to recover the debt from the employer.
In order to process a redundancy lump sum payment from the Social Insurance Fund a fully completed application form, RP50, must be submitted which must be signed by both the employee and employer. While an RP50 application form, in respect of the person concerned, was submitted on 11 September 2014 it was not signed by the former employer and, therefore, it cannot be considered as a valid application.
Where a dispute situation arises between the employee and former employer, including a situation where the employer does not agree to complete and sign the RP50 redundancy form, it is open to the employee to lodge an appeal against the former employer with the Employment Appeals Tribunal (EAT) to adjudicate on entitlement to a statutory redundancy payment. The person concerned has advised my officials that he has lodged an appeal with the EAT in this regard.
In the event that the EAT determines that the person concerned is entitled to a statutory redundancy lump sum payment he should, in the first instance, contact his former employer to ascertain if the employer is in a position to pay the statutory redundancy entitlement to him. In the event that the former employer is unable or refuses to pay the statutory redundancy entitlement an RP50 application form should be submitted to my Department along with the EAT determination.
262. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection the position regarding back payment of a carer's allowance in respect of a person (details supplied). [18691/15]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned has been referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
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.
263. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection if she will provide a breakdown, by year, from 2016 to 2021, of the estimated additional expenditure required to meet the requirements of demographic changes, on a no-policy-change basis; and if she will identify the component parts of that expenditure. [18695/15]
View answerIt is provisionally estimated that the number of pensioner payments will increase by around 17,000 each year in the years 2016 to 2018, resulting in an additional cost over this period of the order of €600 million. These estimates will be revised on an ongoing basis as more up-to-date trend data becomes available. It is expected that the current demographic pressures will continue and that expenditure over the 3 year period 2019 to 2021 will increase at least by a similar order of magnitude to 2016 to 2018.
264. Deputy Seamus Kirk asked the Minister for Finance if residents in an unfinished private estate are obliged to pay property tax; and if he will make a statement on the matter. [18107/15]
View answerSection 10 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a number of exemptions from Local Property Tax (LPT). These exemptions include any unfinished housing estates or portions of unfinished housing estates, which are prescribed (as unfinished) by the Minister for the Environment, Community and Local Government in Statutory Instrument (SI) No. 91 of 2013. The 'prescribed list', which was published in March 2013, can be viewed at www.environ.ie.
Only properties included on the list are entitled to the exemption.
In regard to arrears of Household Charge (HCC), Section 4 (4) (b) of the Local Government (Household Charge) Act 2011 provides for entitlement to exemption/waiver from the liability to HCC on the basis of unfinished estates. This concession is also allowed on a 'prescribed list' basis, which can also be viewed at www.environ.ie.
Properties which are exempt from the HHC are not automatically included in the 'prescribed list' for LPT as the qualifying criterion in respect of both charges are different. For example, certain properties and estates that were listed as exempt from HHC on the basis of being unfinished and which were subsequently further developed in the period up to March 2013 were excluded from the LPT 'prescribed list'. This had the effect of very significantly reducing the number of exemptions in respect of LPT in comparison to HHC.
Accordingly, before any property owner claims an exemption from LPT on the basis of being situated in an unfinished estate, it is important that to ensure the property is included on the LPT 'prescribed list'.
If a property owner requires any clarification regarding entitlement to either exemption then the person should make contact with the relevant Local Authority.
265. Deputy Róisín Shortall asked the Minister for Finance the Government's response to the findings of the Moriarty tribunal; if he will provide details of actions already taken and those proposed to be taken, and the timescale for same. [18135/15]
View answerIn response to the Deputy's question the Moriarty Tribunal made a number of recommendations which affected a number of Government Departments. As Minister for Finance I can only respond in relation to the recommendations made in relation to my own Department.
The tribunal pointed out problems to be addressed in our system of financial regulation. Poor supervision, an overly-deferential attitude by regulators, poor assessment of risks and a lack of follow-through on enforcement all played a part in the financial crisis. This Government has undertaken a number of significant reforms since the financial crisis towards building a strengthened regulatory framework for the Irish financial services sector and to respond to the shortcomings identified. In 2011 the new Fitness and Probity regime was rolled out by the Central Bank in accordance with the provisions of the Central Bank Reform Act 2010. The regime provides for new powers to be exercised by the Central Bank to ensure the fitness and probity of nominees to key positions within financial service providers and of key office-holders within those providers. Following on from the Central Bank Reform Act, 2010, the Central Bank (Supervision and Enforcement) Act 2013 enhances the Central Bank's regulatory powers, drawing on the lessons of the recent past in Ireland and abroad. It strengthens the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely prudential interventions. The Act also provides the Central Bank with greater access to information and analysis and underpins the credible enforcement of Irish financial services legislation in line with international best practice.
The reforms introduced under the Central Bank (Supervision and Enforcement) Act 2013 are complemented by a number of strategically important reforms at EU level in financial services. Under our presidency, agreement was reached on the single supervisory mechanism, one of the main cornerstones of Banking Union which will provide for the European Central Bank to act as supervisor for systemic important banks throughout the Union. Agreement was also reached on the Capital Requirements package which will ensure that European banks hold enough good quality capital to withstand future economic and financial shocks. These legislative reforms have been supplemented by a significant increase in regulatory activity by the Central Bank with a corresponding increase in staff numbers and skill levels. The Central Bank of Ireland's Enforcement Priorities for 2015 highlight the importance of enforcement within its risk-based regulatory framework (PRISM). PRISM represents a challenging and proportionate risk-based system of supervision for all financial institutions operating in Ireland. The Central Bank's Strategic Plan 2013 2015 also sets out a strategy of assertive risk-based supervision underpinned by a credible threat of enforcement.
In response to the Tribunal recommendations I have considered the provision of tax relief for donations to political parties and have decided against introducing such relief. The Electoral (Amendment) (Political Funding) Act 2012 provided for changes to the Electoral Act, 1997 and imposed new limits for donations. Donations to individuals exceeding €600 must be declared and donations exceeding €1,000 in any one year may not be accepted. Political party donations greater than €1,500 must be declared and donations greater than €2,500 in any one year may not be accepted. These limits, in themselves, should act to deter any attempts by wealthy individuals to influence political activity.
The Office of the Revenue Commissioners has provided me with the following information in relation to Revenue issues raised in the recommendations of the Moriarty Tribunal.
Recommendation: Independence of the Revenue Commissioners -
Section 101 of the Minister and Secretaries (Amendment) Act 2011 has placed on a statutory basis the independence of the Revenue Commissioners in the exercise by the Commissioners of their statutory functions under the various taxation and customs enactments. This has given effect to the recommendation of the Report of the Tribunal into Payments to Politicians and Related Matters (that is, the report of Mr. Justice Moriarty), that the principle or convention of the independence of the Revenue Commissioners be placed on the more robust status of a legislative provision.
Recommendation: Representations to Revenue by Office holders -
In relation to this proposal I as Minister for Finance remain of the view that this recommendation could best be considered in the context of the Government's overall approach to political and parliamentary reform. Representations are a valid part of the political process. The Government may wish to consider whether this recommendation should be confined to Revenue, or to Office holders, or whether the Commissioners decision to publish data on the volume of representations made by each Deputy is an adequate response.
Recommendation: Transmission to other agencies of information obtained by Revenue under bilateral agreements - This recommendation has been considered. These agreements are international treaties which are very precisely drawn as to the purpose for which information may be used and would not permit such transmission. However if opportunities arise in the future, the Commissioners will consider the matter further. The Deputy will appreciate that Revenue is not in a position to comment on matters relating to individuals for reasons of taxpayer confidentiality.
266. Deputy Jack Wall asked the Minister for Finance the reason a person (details supplied) in County Kildare is not entitled to tax relief for that person's spouse; and if he will make a statement on the matter. [18101/15]
View answerI have been advised by the Revenue Commissioners that the person concerned has been granted the tax credits and reliefs in 2015 based on the married persons allowance and the Home Carers tax credit. Depending on the level of income it can be more beneficial to opt for the increased standard rate band instead of the Home Carers tax credit and this appears to apply to the person concerned. Revenue will contact the person concerned directly to discuss their 2015 tax credit and rate band options.
I also understand from Revenue that they wrote to the person concerned several months ago seeking documentation to facilitate a review of the tax liability for 2013 and 2014. No reply was received to that letter. This matter is being followed up again with the person concerned.
267. Deputy Jerry Buttimer asked the Minister for Finance if he will consider a further extension to the tax relief for mortgage interest scheme for persons who bought during the period 2004 to 2008, as persons who bought during this period did so at a time of very high prices and are now repaying very large mortgages, and many of these persons are in negative equity, and it would be extremely beneficial, as it would assist them in keeping up full mortgage repayments; and if he will make a statement on the matter. [18169/15]
View answerThe Deputy will be aware that mortgage interest relief has been abolished for homes purchased since 1 January 2013. Up until 2018 however, tax relief continues to be available for interest paid on all qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, regardless of whether the individuals concerned are first-time buyers or non-first-time buyers.
This Government is committed to helping address the particular problems faced by those that bought homes at the height of the property boom between 2004 and 2008. In this regard, in Budget 2012, I fulfilled the commitment in the programme for Government to increase the rate of mortgage interest relief to 30 per cent for first time buyers who took out their first mortgage in that period. This was the period during which house prices peaked. This 30% rate will continue to be applicable to these first-time buyers for the remaining years that mortgage interest relief continues to be available. In the absence of this change the mortgage interest relief available would have gradually reduced to a rate of 15%.
Single individuals, married couples and civil partners that are first-time buyers qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. Thereafter relief is restricted to ceilings of €3,000 and €6,000 respectively.
The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment. Mortgage interest relief is of lesser value to individuals whose repayments are made up of a higher proportion of principal than interest, as would generally be the case for those who move in to the eighth and subsequent years of their loans.
Given the additional relief already available to those that purchased their homes between 2004 and 2008, over and above that available to other qualifying homeowners and given that mortgage interest relief has now lapsed in terms of new qualifying loans, I am not convinced of the merits of revisiting the provisions at this stage.
268. Deputy Maureen O'Sullivan asked the Minister for Finance the progress of the foreign earnings deduction; if he will provide, in tabular form, the number of tax claims made under the scheme since budget 2013; the value of each claim; the qualifying countries or relevant states applicable in each claim; the name of the Irish companies and-or the nature of work carried out in each claim; if there is any similar information available since the scheme’s extension in budget 2015; and his plans to introduce human rights safeguards into the scheme at any stage. [18175/15]
View answerSection 12 of Finance Act 2012 introduced the Foreign Earnings Deduction (FED), which provides for a limited tax deduction for individuals who temporarily carry out the duties of their office or employment in Brazil, Russia, India, China or South Africa. The provision applies as respects the years 2012, 2013 and 2014. The scheme was extended in Finance Act 2013 to include travel to Nigeria, Senegal, Algeria, Egypt, Ghana, the Democratic Republic of Congo, Kenya and Tanzania for 2013 and 2014.
Following a comprehensive review of the scheme in 2014, a number of amendments were made in the 2014 Finance Act. The scheme was extended up to and including 2017 and changes were made to the qualifying criteria for the scheme. In addition, with effect from 1 January 2015, the number of states was also extended to include Japan, Singapore, South Korea, Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Indonesia, Vietnam, Thailand, Chile, Oman, Kuwait, Mexico, and Malaysia in line with the Government's Trade, Tourism and Investment Strategy.
The latest details of tax claims in respect of Foreign Earnings Deduction for 2012 and 2013 are as shown in the following table.
Complete information in relation to the 2014 returns is not yet available as the relevant Form 11 tax returns are not due to be filed until later this year.
|
Country |
Estimated Tax Cost € |
Number of Claims |
||
|
2012 |
2013 |
2012 |
2013 |
|
|
Brazil |
45,436 |
70,198 |
7 |
10 |
|
China |
186,104 |
216,141 |
29 |
32 |
|
India |
77,873 |
104,901 |
11 |
12 |
|
Russia |
120,889 |
57,588 |
13 |
8 |
|
South Africa |
156,899 |
159,152 |
19 |
19 |
|
Other Countries* and Claimants that visited and claimed for more than one country in 2013 |
54,157 |
313,777 |
10 |
38 |
|
TOTAL |
641,358 |
921,757 |
89 |
119 |
*Other countries include Congo, Egypt, Ghana, Nigeria, Senegal and Tanzania.
Having regard to the Revenue Commissioners' obligation to observe confidentiality in relation to the tax affairs of individual taxpayers and small groups of taxpayers, as provided for in Section 851A of the Taxes Consolidation Act 1997, Revenue cannot provide any information regarding the names of the companies and/or of the work carried out in each respect of each claim.
As outlined earlier, the scheme was amended to align with the Government's Trade, Tourism and Investment strategy. In my view, it would not be appropriate to apply some type of human rights safeguards to the application of tax relief designed to boost trade. However, it is unclear what the Deputy has in mind regarding such safeguards.
269. Deputy Maureen O'Sullivan asked the Minister for Finance if he has had discussions with the Irish Insurance Federation regarding a situation facing elderly persons who took out insurance policies several years ago with a fixed rate and a defined death benefit, and who are now being told by their insurer that they will have to pay significantly more for their policy, or accept a reduced payout in the event of death; if he acknowledges that this is causing extreme stress for persons in their 70s and 80s who took out policies in good faith; and if he will make a statement on the matter. [18176/15]
View answerAt the outset it should be noted that in my role as Minister for Finance I have no power to intervene in such matters as the responsibility for day to day regulatory issues is a matter for the Central Bank of Ireland which is statutorily independent in the exercise of these functions.
Consumer issues are covered by the Central Bank's Consumer Protection Code which, amongst other things, sets out a series of general principles about how financial service firms (including all insurance companies) should interact with their customers. The Code, however, does not prohibit or restrict an insurance company from increasing its annual premium rates, as this is a commercial decision for the company in question and is generally determined by such issues as higher claims volumes and the nature of the product.
While the Question does not specify the type of life insurance product taken out, it would appear that you are referring to a type of policy known as a "Whole of Life" policy, which pays a specified amount on death. "Whole of Life" policies cover the policyholder for their entire lifetime, or for as long as the policyholder wishes to continue to pay premiums. Neither I nor officials from my Department have have held discussions with Insurance Ireland. However, the Central Bank has previously advised that premiums for such policies are not fixed and can increase over the duration of the policy. "Whole of Life" policies which cover the policyholder for their entire lifetime while the policy is active must be distinguished from "Term Life" insurance policies which cover a fixed period of time such as 10 or 20 years and have a fixed premium unless index linked.
Most firms state in their current terms and conditions of "Whole of Life" policies that they will carry out regular post-sale reviews. The post-sale policy review will determine if it is likely that the premium currently being paid can maintain the current level of life cover until the next review date. If it seems likely that the fund value of the policy will not be sufficient to maintain the policy to the next review date, the firm will recommend that the policyholder either increase their premium or reduce the level of life cover provided by the policy.
Policyholders who feel that the premium increases which have been proposed by their insurer are unfair are advised to refer the matter to the Financial Services Ombudsman for adjudication at http://www.financialombudsman.ie/.
With regard to concerns that advice given at the point of sale may have been misleading, section 57BX 3(b) of the Central Bank Act 1942, as amended, provides that a consumer may not make a complaint to the Financial Services Ombudsman if the conduct complained of occurred more than 6 years before the complaint is made. The Financial Services Ombudsman is an independent officer and it would not be appropriate for me to intervene in an individual complaint. However, officials in my Department have been informed by the Central Bank that if the consumers have documentary proof that they were given misleading information at the point of sale or at any time since then, this should be forwarded to the Central Bank of Ireland at:
Consumer Protection Codes DivisionCentral Bank of Ireland, PO Box 91386 / 8 College Green Dublin 2
270. Deputy Clare Daly asked the Minister for Finance if he will provide to Dáil Éireann estimates of the overall total loss of revenue to the State in each of the years 2009 to 2014 due to the tax exempt status granted to an institution (details supplied), and other similar institutions, and the consequent non-payment of taxes by all religious groupings within the State. [18189/15]
View answerFor reasons of taxpayer confidentiality, the Revenue Commissioners cannot comment on the tax affairs of individual Bodies or Trusts in receipt of Charitable Tax Exemptions. In addition, the Revenue Commissioners do not collate data in respect of Charitable Tax Exemptions in a manner that facilitates the extraction of separate costings for specific groupings, for example religious bodies.
However, the estimated overall Income Tax/Corporation Tax cost of the Charitable Tax Exemption in respect of charities, colleges, hospitals, schools and friendly societies are available via the Revenue website at www.revenue.ie. Information in regard to the cost of tax relief for Donations to eligible charities and other approved bodies is also available via the Revenue website. The information can be accessed directly from the links supplied below. The second link contains specific data in relation to both Income Tax and Corporation Tax including detailed information in relation to the costs of Credits, Allowances and Reliefs.
http://www.revenue.ie/en/about/statistics/index.html
http://www.revenue.ie/en/about/statistics/index.html#section4
These links reflect data up to and including 2012, which is the latest year where the relevant returns have been filed and fully processed by the Revenue Commissioners. Data for later years will be published in due course.
