Written Answers Nos. 79-89
79. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the number of previously self-employed currently remaining unemployed and on the live register; the steps being taken to facilitate their return to work; and if she will make a statement on the matter. [25396/15]
View answerThe key objective of activation policy and labour market initiatives is to offer assistance to those in need of support in securing work and achieving financial self-sufficiency. This policy objective prioritises scarce resources to those in receipt of qualifying welfare payments. Accordingly the employment services and schemes provided by the Department are focused, in the first instance, on this cohort of unemployed people.
At the end of May 2015 there were 10,699 persons on the Live Register who had previously been self-employed.
People who were previously self-employed and are now in receipt of jobseeker’s allowance (JA) – and thus are on the Live Register – have access to the full range of activation measures and supports available to other jobseeker’s allowance recipients. This includes referral to group information sessions, 1-2-1 interviews and subsequent caseworker support. It also includes access to training, temporary employment, work-experience and recruitment subsidy programmes.
80. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which the self-employed may qualify for various social welfare supports in the future; and if she will make a statement on the matter. [25397/15]
View answerThere are approximately 360,000 self-employed contributors including such as business owners, contractors, taxi drivers and farmers. These self-employed pay PRSI at the class S rate of 4%. This entitles them to access long-term benefits including State pension (contributory). A combined employer and employee PRSI rate of 14.75% is paid in respect of most employees, who can access the full range of social insurance benefits.
The most recent Actuarial Review of the Social Insurance Fund published in 2012 found that a 15% contribution rate would be needed to provide the core full-rate State pension (contributory), to the self-employed. This compares very favourably with the 4% rate currently paid by the self-employed.
In its 2013 report the Advisory Group on Tax and Social Welfare found that almost 9 out of every 10 self-employed people who claimed the means tested jobseeker’s allowance during the three-year period from 2009 to 2011 received payment. Therefore, it was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.
However, the Group found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries, through the invalidity pension and the partial capacity benefit schemes. In this regard the Group recommended that the rate of contribution for class S should be increased by at least 1.5 percentage points, payable on a compulsory basis only.
I am anxious to see the level of entitlement for the self-employed improve but any such change will need to be funded through an appropriate level of contribution.
81. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection further to Parliamentary Questions Nos. 220 of 31 March 2015 and 168 of 16 June 2015, if she will explain the contradiction regarding her issuing of letters recommending social welfare recipients to utilise their banks rather than the post office network, as this business is paramount to the future existence of the post office network; if she will revert back to her original stance and response to my parliamentary question of 31 March 2015; and if she will make a statement on the matter. [25414/15]
View answerThe Deputy’s question of the 31st March last related to letters issued to customers as part of a small trial to determine the best means of communicating with people about their payment options. The position has not changed and the Department has no plans to issue further letters at this stage.
The Deputy’s question of 16th June related to changes to applications forms which were issued to post offices. Further to my answer of 16th June I can confirm that the department will be updating the forms to ensure that a neutral wording in relation to payment options is provided and to also ensure that one payment option is not favoured over another.
The Department is conscious of the important role of the post office around the country, not only in respect of social welfare payments but also in offering other financial services such as paying bills and carrying out a range of banking services. The Government has consistently stated its commitment to maintaining the post office network as set out in the Programme for Government.
82. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the position regarding an application for a carer's allowance in respect of a person (details supplied) in County Limerick; and if she will make a statement on the matter. [25427/15]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 15th June 2015, 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.
83. Deputy Peadar Tóibín asked the Minister for Finance the annual cost to the Exchequer of introducing capital gains tax tapering relief for new companies that hold assets for eight years to 15%. [25302/15]
View answer93. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer by increasing the rate of capital gains tax from 33% to 40%. [25266/15]
View answer94. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer by abolishing capital gains tax exemptions for private principal residences sold for in excess of €1 million. [25267/15]
View answer111. Deputy Peadar Tóibín asked the Minister for Finance the cost to the Exchequer of allowing entrepreneurs and small and medium enterprise start-ups a three-year capital gains tax window for selling on their ideas and or businesses. [25286/15]
View answer112. Deputy Peadar Tóibín asked the Minister for Finance the cost to the Exchequer of dividing the capital gains tax categories into passive and active and applying a 40% rate to the passive tax activity, for example, buying shares and the existing rate to active engagement, for example, selling on a business. [25287/15]
View answerI propose to take Questions Nos. 83, 93, 94, 111 and 112 together.
I am advised by the Revenue Commissioners that a wide range of statistical information is available on their statistical webpage at
Http://www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy's questions, detailed information on potential costs can be found in the post-Budget 2015 Ready Reckoner: http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf.
The potential estimated yield from increasing the Capital Gains Tax rate from 33% to 40% could be in the order of €105 million. This estimate includes the yield from increasing the tax rate in respect of corporate gains. The estimate assumes no behavioural impact on the part of taxpayers. Increases in rates may have a significant behavioural impact and as a result may not produce the expected increase in tax yield.
In respect of the revenue that would be raised for the Exchequer from abolishing Capital Gains Tax exemptions for private principal residences sold in excess of €1 million, as information on the value of capital gains arising from the disposal of principal private residences is not required in Capital Gains Tax returns, there is no basis for separately identifying the yield that would arise from the removal of the exemption from CGT for sales of principal private residences above €1 million. Accordingly, the specific information requested by the Deputy is not available.
Regarding the cost of allowing entrepreneurs/small and medium enterprises start-ups a three year Capital Gains Tax window for selling on their ideas and or businesses, it is assumed that the Deputy is referring to the CGT entrepreneurial relief that was introduced to encourage entrepreneurs to invest and reinvest in assets used in new productive trading activities. The measure applies where an individual, who has paid capital gains tax on the disposal of assets, makes investments in a new business in the period 1 January 2014 to 31 December 2018 and subsequently disposes of this investment no earlier than three years after the date of investment. Due to the conditions attaching to the relief no Exchequer cost arises in 2015. Costs relating to this measure are not expected to arise until at least 2017 and on its introduction in Budget 2014 the full year cost was estimated at €20 million.
Regarding the cost to the Exchequer of dividing the Capital Gains Tax categories into passive and active and applying a 40% rate to the passive CGT activity for example, buying shares and the existing rate to active engagement for example selling on a business, as tax returns do not provide a basis for compiling estimates in relation to the amount of CGT liability separately associated with passive and active activity, it is therefore not possible to provide the information requested by the Deputy.
Regarding the final question, it is assumed the Deputy is asking about the cost of introducing a Capital Gains Tax tapering relief of 15% for new companies who hold assets for eight years. As data is not available from tax returns regarding the extent to which new companies would be in a position to avail of this relief there is, therefore, no statistical basis on which an estimate of the cost can be provided.
84. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will provide, in tabular form, for 2011 to 2014, inclusive, and 2015 to date, the total monetary amount of carbon tax and value-added tax accrued to the Exchequer from private fuel sales; and if he will make a statement on the matter. [25208/15]
View answerI am informed by the Revenue Commissioners that a breakdown of receipts between fuel for private and commercial use is not readily available. The receipts from Carbon Tax are as outlined in the tables. Marked Gas Oil can be home heating or agricultural use and a breakdown is not available. Similarly, it is not possible to differentiate between private and business use for Auto Diesel, and the figures stated are for all use.
In respect of Value Added Tax I wish to inform the Deputy that it has not been possible to compile the information requested in the time available. A response is being prepared and will be forwarded to the Deputy as soon as possible.
|
Petrol |
Carbon Tax (€m) |
|
2011 |
60.1 |
|
2012 |
74.6 |
|
2013 |
69.6 |
|
2014 |
65.7 |
|
Auto Diesel |
Carbon Tax (€m) |
|
2011 |
97.5 |
|
2012 |
130.8 |
|
2013 |
137.2 |
|
2014 |
144.8 |
|
Solid Fuel Applicable from 1 May 2013 |
|
|
2013 (8 mths) |
7.3 |
|
2014 |
17.2 |
|
Kerosene |
- |
|
2011 |
40.5 |
|
2012 |
40.4 |
|
2013 |
47.3 |
|
2014 |
42.3 |
|
Marked Gas Oil |
|
|
2011 |
48.9 |
|
2012 |
54.7 |
|
2013 |
60.4 |
|
2014 |
54.2 |
|
Auto LPG |
|
|
2011 |
0.012 |
|
2012 |
0.025 |
|
2013 |
0.069 |
|
2014 |
0.114 |
|
Natural Gas |
|
|
2011 |
43.1 |
|
2012 |
44.5 |
|
2013 |
56.5 |
|
2014 |
51.7 |
85. Deputy Ruth Coppinger asked the Minister for Finance his plans for the phasing out of one and two cent coins. [25228/15]
View answer86. Deputy Ruth Coppinger asked the Minister for Finance if there are implications for the validity of existing one and two cent coins and coins entering the State from other eurozone countries; his views on the handling of one and two cent coins that enter circulation here, following the phasing out of the coins; and if he will make a statement on the matter. [25229/15]
View answer87. Deputy Ruth Coppinger asked the Minister for Finance his plans for the monitoring of prices when one and two cent coins are phased out for cash transactions. [25230/15]
View answerI propose to take Questions Nos. 85 to 87, inclusive, together.
One of the recommendations of the National Payments Plan was to conduct a rounding trial in a mid-sized Irish town to test consumer and retailer reaction to the concept of rounding. The motivation for rounding is to reduce the need for 1 and 2 cent coins, making transactions more convenient for customers and retailers alike. The impetus to reduce use of 1 and 2 cent coins by rounding total bills to the nearest 5 cent at the till arises from:
- The reluctance of consumers to use 1 and 2 cent coins these coins tend to be lost or hoarded
- The related cost/inconvenience to retailers of dealing with these coins
- The disproportionate cost to the Central Bank to produce new 1 and 2 cent coins for circulation
The Wexford Rounding Trial was subsequently run from 16 September to 17 November 2013, and showed strong support for rounding both from consumers and retailers. During the Trial retailers rounded cash transactions to the nearest 5 cent at the cash register, removing the need for 1 and 2 cent coins in change. When don't knows are excluded, 85% of consumers and 100% of retailers surveyed after the Trial believed rounding should be applied nationally.
The Government has now asked the Central Bank to rollout rounding nationally. This will be done on the following basis:
- Rounding will be to the nearest 5c, and apply only to total bills, not individual items;
- It will be introduced on a voluntary basis for both retailers and consumers;
- Retailers will be given adequate time to prepare for the implementation of rounding;
- A national information campaign to support the rollout will be conducted by the Central Bank, aimed at both consumers and retailers;
- 1 cent and 2 cent coins will retain their status of legal tender. The Central Bank will continue to issue 1 and 2 cent coins to meet demand;
As such, 1 cent and 2 cent coins will not be withdrawn from circulation, though the volumes used are expected to decline significantly. The fact that these coins will also continue to enter the system from abroad (e.g. through spending by tourists) will not create any difficulty. However it will be important that the Central Bank, in communicating to consumers about rounding, also ensure that tourists are adequately informed. As rounding only applies to the final bill, not to individual items, it is not expected that rounding will have any impact on prices. However, the Central Bank will also be asked to track prices as part of the rollout.
88. Deputy Fergus O'Dowd asked the Minister for Finance if he will extend the list of towns eligible for the living city initiative, introduced in the Finance Bill 2013, to include Drogheda and Dundalk in County Louth; and if he will make a statement on the matter. [25259/15]
View answerThe Living City Initiative, which was enacted in the Finance Act 2013 and commenced on 5th May 2015, has been extended beyond the original pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny as well. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities was as a result of a comprehensive, independent ex ante cost benefit analysis.
This Initiative is targeting particular areas of these six cities which are most in need of regeneration. I do not currently intend to extend the Initiative further than the six cities. However, my Department will closely monitor the progress of the Initiative in the six cities, and will keep the matter of potentially extending the relief further under review.
It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas in the six cities which are most in need of attention.
89. Deputy Peadar Tóibín asked the Minister for Finance the revenue that would be raised for the Exchequer by introducing a tax on e-cigarettes and liquid nicotine. [25260/15]
View answerAs the Deputy will be aware, electronic cigarettes ('e-cigarettes') are products that deliver a non-medicinal nicotine-containing aerosol by heating a solution (or 'e-liquid') typically made up of propylene glycol, nicotine and flavouring agents. Despite their design, electronic cigarettes do not contain tobacco, and there is no combustion involved. Accordingly, neither e-cigarettes nor e-liquid fall under the harmonised regime for the taxation of tobacco products contained in the Tobacco Products Tax Directive (Directive 2011/64/EU), and may therefore be subject to rates and structures of duty arrived at by each Member State of the European Union.
The Deputy has not proposed a definition of the taxable product, duty structure or rate. However, I will take it that the Deputy wishes to impose a duty on the e-cigarette itself, and on e-liquid containing nicotine above a certain percentage of volume (i.e. above 0.5%). Given a large quantity of the purchase of e-cigarettes and e-liquids takes place online it is difficult to estimate how large the market for such products is in Ireland.
However, it is possible to estimate use based on provisional prevalence statistics collected by the Health Service Executive. Using these estimates, it is possible to estimate the yield from imposing a (VAT-inclusive) duty of €0.50 per 10ml of 'e-liquid'. Assuming a full pass through of such a duty imposition, the yield from such a duty of excise would be €8.3 million.
I would point out that imposing and collecting a duty on e-cigarettes would require the encompassing of e-cigarettes within the current excise collection system, which would require additional Revenue resources.
