Written Answers Nos. 234-247
234. Deputy Lucinda Creighton asked the Minister for Finance if he will report on all public and private, official and unofficial, engagements and meetings with a person (details supplied) and with senior executives within the person's media companies here; and the outcome of such meetings. [23045/15]
View answerSince taking office, there have been no public or private, official or unofficial, engagements or meetings between me and Denis O'Brien. Nor have there been such meetings between me and representatives of Mr O'Brien's company Communicorp Group Ltd.
For the sake of completeness, I should inform the Deputy that there was a pre-Budget meeting on the 24th Sept 2014 with representatives of the Independent News and Media group which I attended.
I took part in a speaking engagement which included a Q&A session with journalists of Independent Newspapers on April 8th 2014. Senior management of Independent News and Media were also in attendance.
As the Deputy may be aware, I regularly contribute to events both nationally and internationally and therefore it might be the case that I could contribute to events where Mr O'Brien or his executives may have been in the audience.
235. Deputy Michael McGrath asked the Minister for Finance his views on the independent review carried out by a company (details supplied) of certain matters pertaining to Ulster Bank; if he is satisfied with the number of files which were reviewed and the number of customers interviewed, as part of the review; and if he will make a statement on the matter. [23057/15]
View answerFirstly, let me make clear that Ulster Bank is an independent institution and I, as Minister for Finance, have no role in operational matters in the bank including independent reviews or reports commissioned by the bank.
As the Deputy will be aware on 25 November 2013, Dr Lawrence Tomlinson published a report entitled "Banks' Lending Practices; Treatment of Businesses in Distress" (the "Tomlinson Report"). This report dealt with the lending practices of UK banks to Small and Medium Sized Enterprises (SMEs). This report alleged that a division of Royal Bank of Scotland (RBS), the Global Restructuring Group (GRG), was guilty of "systematic and institutional behaviour" in artificially distressing otherwise viable businesses and thereby putting such businesses "on a journey towards administration, receivership, and liquidation." (the Principal Allegation)
I have been informed that in early 2014, a decision was taken by Ulster Bank Ireland Limited that an independent review should be undertaken in the Republic of Ireland into the relevance of the Principal Allegation to the corresponding division, namely the Global Restructuring Group Ireland.
On the 19th December 2014 Ulster Bank published the findings of the independent review by Mahon Hayes Curran into practices at Ulster Bank's Global Restructuring Group in the Republic of Ireland (GRGI). The investigation found no evidence to support the allegation and suggested that GRGI's driving policy was to manage its customers through the cycle, supporting them where possible to return them to viability.
I have been informed that in compiling the report, Mason Hayes & Curran reviewed 32 customer case studies, interviewed 39 staff members and reviewed 140,000 pages of customer files and 24 policy and procedures documents.
The basis for the sample selected is set out in section 3.2 of the report. This states that in seeking to determine the number of files to be reviewed, they used internationally accepted statistical sampling methods, as well as specifically looking at cases for customers who had contacted them directly or made a complaint to Ulster Bank Ireland Limited on a Tomlinson related issue and who wished to have such complaint reviewed. They also thought it would be helpful to concentrate specifically on those trading companies which had been dealt with in Recoveries and placed into receivership, and those customers who had transactions involving WRI (West Register Ireland).
236. Deputy Pearse Doherty asked the Minister for Finance his plans to make a detailed response to the findings in the Irish Fiscal Advisory Council's latest report; and if he will make a statement on the matter. [23089/15]
View answerThe Fiscal Assessment Report is being considered by my officials. While I have already given some initial views on issues raised by the Council in recent parliamentary questions, as is normal, a comprehensive response to the Fiscal Council on all of the pertinent issues will be published in the coming weeks.
237. Deputy Pearse Doherty asked the Minister for Finance if he agrees with the Irish Fiscal Advisory Council that the plan in the Stability Programme Update 2015 is not in line with the requirements of the domestic budgetary rule or the preventive arm of the Stability and Growth Pact, on a forward-looking basis; and if he will make a statement on the matter. [23090/15]
View answerAs the Deputy will be aware, from 2016 onwards, the public finances in Ireland will be subject to the requirements of the preventive arm of the Stability and Growth Pact (SGP). The European Commission assesses compliance with the preventive arm on the basis of two complementary pillars. First is the minimum annual improvement in the structural balance and the second is compliance with the expenditure benchmark. The minimum improvement in the structural balance and the expenditure benchmark are in theory designed to be complementary, although differences between the two metrics can emerge from time to time.
IFAC noted that the fiscal projections contained in the Stability Programme Update (SPU) did not show Ireland complying with our requirements under the SGP; in other words, that the improvement in our structural balance is below the required 0.6 percentage points in 2016.
However, SPU estimates show that for Ireland compliance with the expenditure benchmark pillar is consistent with delivering a lower suggested quantum of structural adjustment in 2016. This somewhat counterintuitive outcome was explicitly addressed in the SPU, and emphasises the material problems posed by some of the technical aspects of the rules.
Finally, it should be noted that compliance with the requirements of the SGP is ultimately assessed on the basis of analysis undertaken by the European Commission. In this context, the recent assessment of the SPU published by the European Commission as part of the European Semester process finds that 'on the basis of information in the 2015 Stability Programme Update re-calculated according to the common methodology, progress towards the MTO is in line with the requirements of the preventive arm of the [Stability and Growth] Pact'. The assessment by the Commission also finds that 'the rate of expenditure growth net of discretionary revenue measures, as planned in the SPU, is expected to be in line with the requirements of the expenditure benchmark pillar'.
In summary, therefore, the projections in the SPU are consistent with the requirements of the Stability and Growth Pact.
238. Deputy Pearse Doherty asked the Minister for Finance if he agrees with the Irish Fiscal Advisory Council that the budgetary projections in the stability programme update 2015 do not present a full picture of the likely costs of demographic ageing and cost pressures in delivering existing programmes, as well as not taking into account explicit Government commitments to reduce taxes; and if he will make a statement on the matter. [23091/15]
View answerThe Spring Economic Statement (SES) and the corresponding Stability Programme Update (SPU) outlined that fiscal space of the order of €1.2 to €1.5 billion is expected to be available for Budget 2016. The fiscal projections contained in those publications are based on a technical assumption of a budgetary package of €1.2 billion in 2016 which will be split evenly between expenditure increases and tax reductions.
For the post-2016 period, the published fiscal projections reflect a no-policy-change scenario from an expenditure perspective, other than provision being made for a €300 million increase in gross voted expenditure per annum to offset demographic pressures.
In addition, given the forecast improvements in the labour market with unemployment forecast to fall from 9.6% in 2015 to 6.9% in 2020 certain Live Register savings and savings from efficiencies and policy measures will make funds available to meet expenditure and other priorities.
However, the production of fiscal forecasts reflecting policy beyond 2016 requires specific decisions on the allocation of fiscal space for each year. Options include whether it should go wholly to expenditure (current / capital) or tax cuts or a combination of these and the iterative nature of forecasting over a four year period means that the range of potential fiscal projections is significant.
When Government has fully considered the appropriate use of the available fiscal space, this will be reflected in the fiscal forecasts.
239. Deputy Pearse Doherty asked the Minister for Finance if he agrees with the Irish Fiscal Advisory Council that, post-2016, the medium-term projections for expenditure and tax revenue in the stability programme update 2015 do not fully meet the requirements of a medium-term fiscal plan, as envisaged in the Government’s budgetary framework; and if he will make a statement on the matter. [23093/15]
View answerThe Fiscal Council noted that the provision of indicative fiscal space for the forthcoming Budget was a welcome development in terms of fiscal transparency. Indeed, this sets the scene for the National Economic Dialogue to be held next month.
The post-2016 forecasts in the Stability Programme Update and the Spring Economic Statement reflect an increase in expenditure of €300m per annum to offset demographic pressures and indexation of the income tax system at an estimated cost of €300m in a full year. This adds to the realism and credibility of the forecasts.
However, the production of fiscal forecasts reflecting policy beyond 2016 requires specific decisions on the allocation of fiscal space for each year. Options include whether it should go wholly to expenditure (current / capital) or tax cuts or a combination of these and the iterative nature of forecasting over a four year period means that the range of potential fiscal projections is significant.
When Government has fully considered the appropriate use of the available fiscal space, this will be reflected in the fiscal forecasts.
240. Deputy Derek Nolan asked the Minister for Finance if he will provide, in tabular form, for each of the past ten years, the amount of tax revenue accrued by the Exchequer from corporation tax and, separately, that portion of corporation tax which accrued as a result of tax laws allowing Irish resident companies be non-resident for tax purposes; and if he will make a statement on the matter. [23143/15]
View answerPublished statistics regarding receipts of corporation tax over the past 10 years are available on the Revenue website at http://www.revenue.ie/en/about/statistics/net-receipts.pdf.
Regarding the proportion of corporation tax that is attributable to Irish resident or incorporated companies that were non-resident for tax purposes, I am advised by the Revenue Commissioners that as these are companies that are not currently within the scope of Irish taxation unless they are carrying on a trade in the State through a branch or agency, data on the number of companies involved, or the corporation tax paid by such companies that are trading in the State through a branch of agency, is not available.
241. Deputy Mattie McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding outsourcing by a bank, and its implications for customers and staff; and if he will make a statement on the matter. [23156/15]
View answer262. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding outsourcing to a third party service provider by an Irish bank; and if he will make a statement on the matter. [23656/15]
View answer275. Deputy Thomas P. Broughan asked the Minister for Finance as a shareholder, if he will report on Allied Irish Bank’s proposed plans to outsource its application and development management teams within its information and technology division; the number of redundancies this would result in; the timeframe planned for this proposal; and if he will make a statement on the matter. [23896/15]
View answer277. Deputy Joan Collins asked the Minister for Finance his views on a matter (details supplied) regarding Allied Irish Banks; if he will, as representative of the bank's principal shareholder, request the bank's senior management not to proceed with this plan; and if he will make a statement on the matter. [23930/15]
View answerI propose to take Questions Nos. 241, 262, 275 and 277 together.
Under the Relationship Frameworks, the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced.
The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.
242. Deputy John Deasy asked the Minister for Finance his plans to move the order to commence the Living City initiative five-year qualifying period. [23180/15]
View answerThe Living City Initiative was commenced and launched on 5 May 2015, through statutory instruments 170 and 171 of 2015. This commenced the qualifying period, which will last for five years from that date.
243. Deputy Michael McNamara asked the Minister for Finance why he met with Fianna Fáil's Leader and spokesperson on Northern Ireland and Sinn Féin's Vice President on the proposed terms of reference for a commission of investigation to be established to assess the oversight of the Department of Finance of the Irish Bank Resolution Corporation's transactions, which resulted in a loss of at least €10 million, rather than with the Opposition parties' finance spokespersons; if he will outline the process by which these meetings came about; and if he will make a statement on the matter. [23190/15]
View answerFollowing the announcement of the draft Terms of Reference for the Commission of Investigation on 3 June 2015, I wrote to opposition party leaders and to Deputy Catherine Murphy, in her role as Whip of the Technical Group, seeking their observations on the draft Terms of Reference. My office contacted the opposition party leaders and Deputy Murphy to arrange follow-up meetings. I was not prescriptive on who should attend these meetings. On Monday 8 June 2015, I held separate meetings with Deputy Micheál Martin, Deputy Mary Lou McDonald and Deputy Catherine Murphy where they put forward their observations.
244. Deputy Michelle Mulherin asked the Minister for Finance if he will direct the Revenue Commissioners to take a proactive approach to counteract petrol stretching and diesel laundering, and in particular to put in place a mobile testing laboratory for spot checks at filling stations, in view of the shortcomings in the current reactive system (details supplied); and if he will make a statement on the matter. [23202/15]
View answerI am advised by the Revenue Commissioners, who are responsible for acting against fuel fraud, that they recognise the serious threats that this criminal activity poses to legitimate businesses, motorists and Exchequer revenues. Action against it is, therefore, a priority for them, and they undertake, on an ongoing basis, an extensive programme of compliance and enforcement activities that are designed to ensure adherence to the legal requirements governing the supply and sale of fuels and to allow action to be taken against fraud. Among the key elements of the programme are the carrying out of control and compliance inspections at critical points of the fuel supply chain, and the targeting, in co-operation with other enforcement authorities, of the organised crime groups that are responsible for a large proportion of fraudulent activity.
The Revenue Commissioners have also, since 2011, introduced a range of measures that have enhanced progressively the controls on the fuel supply chain, with the objective of reducing the scope for criminals to source fuels for laundering or to get laundered fuel on to the market. Key initiatives include the following.
- The introduction in September 2011 of a strengthened licensing regime for auto fuel traders.
- The putting in place in October 2012 of a new licensing regime for marked fuel traders.
- New requirements for the keeping by fuel traders of records of stock movements and fuel deliveries, to ensure that data are available to support supply chain analysis.
- The inception, from January 2013, of a requirement that all licensed fuel traders, make monthly electronic returns of their fuel transactions to Revenue, providing data that can be used to identify suspicious or anomalous transactions or patterns of fuel distribution and support follow-up enforcement action, where necessary.
- The introduction from the start of April 2015 of a new and more effective product for marking rebated fuels that was identified as a result of a joint process conducted with HM Revenue and Customs in the UK. The work of Revenue officers in testing fuel for the presence of the new marker will be supported by mobile equipment that will allow on the spot analysis of samples.
I introduced the necessary legislative provisions to underpin these important initiatives, and have also put in place other measures designed to strengthen Revenue's hand in combatting fuel criminality.
The Finance (No. 2) Act 2013 provides that a supplier who is reckless in supplying fuel for a use connected with excise fraud will be liable for duty at the standard rate of tax, and represents a significant disincentive to such activity. In the Finance Act 2014, I introduced measures to further strengthen Revenue's ability to refuse or revoke a mineral oil trader's licence where the trader does nor comply with excise law, does not maintain adequate stock management systems and records, or provides false or misleading information. Revenue's action against fuel fraud has already yielded significant results. In the period since 2011, 31 oil laundries have been detected and closed down, more than 3 million litres of fuel have been seized and 139 filling were closed for trading without a licence or breach of licence conditions. In addition, industry sources report a much-reduced incidence of laundered fuel on the market and increased road diesel consumption. While other economic factors have contributed to this growth, reduced fraud is also an important contributory element.
In relation to petrol stretching, I am advised that the Revenue Commissioners have, since last summer, received reports from around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Petrol stretching involves the illegal addition of a low-tax commodity to petrol, defrauding motorists and the State. Every filling station about which a complaint was made has been visited by Revenue officers and petrol samples taken have been sent to the State Laboratory for scientific analysis. 360 samples were submitted but, despite this extensive programme, evidence of the presence of prohibited stretching agents has been found in only two samples, both from one location. The conclusive results received from those tests led to the seizure of the product. A case is currently before the Courts in one case, and a file is being prepared with a view to prosecution in the other.
Following a series of further tests conducted by the State Laboratory, results indicated the presence of road diesel in samples from a variety of locations. This could indicate that petrol was contaminated with road diesel at some point in time. If the problems that have come to light were caused by unintended contamination as a result of diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Revenue Commissioners are investigating the possibility of tax fraud being associated with the identified problems.
In any instance where the analysis of samples by the State Laboratory indicates the presence of illegal stretching agents in petrol, Revenue will take swift and robust action and pursue prosecutions against alleged offenders where possible. I am satisfied that the Revenue Commissioners are undertaking a wide-ranging and effective programme of action against all forms of fuel fraud and am assured that combatting such illegal activity will continue to be a key priority for them.
245. Deputy Frank Feighan asked the Minister for Finance the investments made through the National Pensions Reserve Fund, the Ireland Strategic Investment Fund, and the Innovation Fund Ireland in biotechnology start-up companies since 2011; if he will project the long-term employment dividend that is expected to result from these investments; if he will provide relevant data (details supplied); and if he will make a statement on the matter. [23270/15]
View answerInnovation Fund Ireland is a Government initiative led by Enterprise Ireland and the Ireland Strategic Investment Fund (ISIF) formerly the National Pensions Reserve Fund (NPRF*) to attract leading international venture capital managers to Ireland and to increase the availability of capital to Irish early stage and high growth companies, with a particular focus on the technology and healthcare sectors. The ISIF has advised that it has allocated €125 million to this initiative and made 7 investment commitments to venture capital fund managers totalling €114 million.
The NPRF/ISIF separately invested in a number of Irish domestic focused venture capital funds, also operating primarily in the technology and healthcare sectors. Eight early stage Irish pharma/biotech companies have been supported indirectly in this manner to date by the NPRF/ISIF, either via the Innovation Fund Ireland initiative or via investment by the domestic focused venture capital funds.
The companies indirectly supported by the NPRF/ISIF in this manner are as follows:
Amarin Corporation
Trino Therapeutics
Opsona Therapeutics
Genable Technologies
Alexo Therapeutics
Heart Metabolics
Prothena Corporation
Innocoll
In March 2015 the ISIF completed an investment in shares of Malin Corporation plc, a global healthcare company headquartered in Dublin. Malin has invested in the following early stage Irish pharma/biotech companies in which the ISIF accordingly has an indirect exposure as a Malin shareholder. Further details can be found on http://malinplc.com/
Altan Pharma
An²H Discovery
The ISIF intends to publish aggregate portfolio level economic impact data in respect of its investments and the first economic impact report is expected to be published in the coming weeks. For reasons of commercial sensitivity, individual company data will not be published.
*On 22 December 2014 the assets of the NPRF transferred to become assets of the Ireland Strategic Investment Fund (ISIF). The ISIF's mandate is to invest on a commercial basis to support economic activity and employment in Ireland.
246. Deputy Bernard J. Durkan asked the Minister for Finance if any refund of tax paid is due to a person (details supplied) in Dublin 13; and if he will make a statement on the matter. [23289/15]
View answerI am advised by the Revenue Commissioners that the person in question is due a refund of Local Property Tax, which was deducted in error from his salary in 2013. This refund will issue shortly.
On the basis of the information currently available to Revenue, there is no refund due in respect of PAYE tax paid by the person concerned. If the person concerned has an entitlement to any tax credits that he has not already been granted then he should advise Revenue accordingly using Revenue's electronic service, either by completing the electronic tax return form, e-Form 12, or via the online service for PAYE taxpayers, PAYE Anytime. Both these services are available on the Revenue website at www.revenue.ie
247. Deputy Bernard J. Durkan asked the Minister for Finance if a tax refund is due in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [23297/15]
View answerI am advised by the Revenue Commissioners that the person concerned is entitled to a tax refund. Revenue has been in contact with the person concerned as part of the process to clarify the exact amount of the refund due. The matter will be finalised as soon as possible and the refund issued to him.
