Skip to main content
Normal View

Wednesday, 8 Jul 2015

Written Answers Nos. 60-67

Child Care Services Provision

Questions (60)

Anne Ferris

Question:

60. Deputy Anne Ferris asked the Tánaiste and Minister for Social Protection if she will provide clarity on the financial and community child care supports available on the transitionary path to employment from the one-parent family payment, for parents of children over seven, and, in particular, how it is proposed for transition to employment to be determined by free choice, rather than by economic necessity; the way the changes are to be implemented within the framework of the archaic though legally binding provisions of Article 41.2.2 of the Constitution; the financial safeguards and public communications processes that are in place to ensure that women could not in any circumstance face a situation of feeling compelled to have additional pregnancies to maintain welfare, supports out of a perception of financial necessity; and if she will make a statement on the matter. [27941/15]

View answer

Written answers

Child care is recognised as an issue for all working parents including lone parents.

Child care policy, including the delivery and/or expansion of childcare services, is the responsibility of the Department of Children and Youth Affairs. Individuals can avail if required of the subsidised childcare supports provided by the Department of Children and Youth Affairs. That Department currently subsidises approximately 100,000 childcare places, 25,000 of which are specifically for low income parents. This provision includes full time and after-school places as well as child care places specifically to enable parents’ avail of full time education and training courses.

In order to assist lone parents to move into the workforce, the Department introduced, in partnership with the Department of Children and Youth Affairs, the after school childcare scheme in 2013. This scheme supports persons who are unemployed as well as customers who transition out of the one-parent family payment scheme. It applies to persons who take up a work position, who increase their days of employment, or who take up a place on a Departmental employment programme. The scheme provides up to 500 subsidised child care places both after-school places and after-school with pick-up service places.

The community employment childcare programme was introduced in 2014 and provides subsidised part-time and after-school child care places for children up to the age of 13 years to Community Employment participants, including to lone parents. The community employment childcare scheme has an annual budget of €7.5 million to provide 2,000 child care places.

In recognition of the caring responsibilities that lone parents with young children have, the Government introduced in June 2013 the jobseeker’s transitional payment. This is available to lone parents who transition from the one-parent family payment onto a jobseeker’s allowance payment and who have a youngest child aged under 14 years of age. These customers are exempt from the jobseeker’s allowance conditions that require them to be available for, and genuinely seeking full-time employment. In effect this ensures that no lone parent with a child under the age of 14 is required to take up employment in order to receive an income support payment from the State. Recipients of this payment can choose to work part-time, if they so wish, and still receive the jobseeker’s transitional payment. This work can be of any pattern e.g. mornings only when their children are in school. The Jobseeker’s transitional payment allows this cohort of customers to balance their caring responsibilities and significantly reduces their requirement for child care.

These customers will also receive a one to one meeting with a case officer from the Department who will assist them to produce a personal development plan and guide them towards appropriate education, training and employment opportunities. While the customer is on the jobseeker’s transitional payment this support is available and is not limited to the 12 month engagement that applies for other jobseekers from their one to one meeting.

One-parent family payment recipients who lose their entitlement to the one-parent family payment, and who have a youngest child aged 14 years or over, can apply for the jobseeker’s allowance payment, where they will be subject to the same conditionality as any other recipient of the jobseeker’s allowance payment and will receive the same activation supports as all other jobseekers.

Disability Allowance Applications

Questions (61)

Bernard Durkan

Question:

61. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the progress to date in determining an application for a disability allowance for a person (details supplied) in County Kildare; and if she will make a statement on the matter. [27976/15]

View answer

Written answers

The person in question has been awarded a disability allowance payment with effect from 11 February 2015. First payment was on 22 April 2015 and any arrears due will follow shortly.

Home Renovation Incentive Scheme Data

Questions (62)

Peadar Tóibín

Question:

62. Deputy Peadar Tóibín asked the Minister for Finance the number of persons availing of the home renovation scheme; the cost of the scheme to date; the average individual benefit from the scheme; and if the Revenue Commissioners have compiled any geographical analysis of where the scheme is being availed of. [27763/15]

View answer

Written answers

Data relating to the home renovation incentive scheme is available from the statistics section of the Revenue website at www.revenue.ie/en/about/statistics/index.html. In particular, the data requested by the Deputy, including a breakdown by county, are available in the "Tax Expenditures" section of the page at www.revenue.ie/en/about/statistics/hri-stats.pdf.

These statistics will be updated in due course.

The Deputy should note that the value of the tax credits referred to therein is not reflective of the cost to the Exchequer as not all credits have been claimed to date. Furthermore, it should be noted that tax credits claimed by an individual are split evenly over a two year period.

Home Renovation Incentive Scheme

Questions (63)

Peadar Tóibín

Question:

63. Deputy Peadar Tóibín asked the Minister for Finance his plans for the home renovation incentive grant; and if he plans to expand the grant. [27764/15]

View answer

Written answers

As the Deputy is aware, the Home Renovation Incentive (HRI) was introduced in Budget 2014 and will run until the end of December this year. The incentive provides tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. This is not a grant. In Budget 2015 I extended the scheme to include rental properties, whose owners are subject to income tax.

Qualifying expenditure is expenditure subject to the 13.5% VAT rate.  The work must cost a minimum of €4,405 (exclusive of VAT) which would attract a credit of €595.  Where the cost of the work exceeds €30,000 (exclusive of VAT) a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out.

The aim of the incentive is to stimulate increased activity in the construction sector and boost employment. It is aimed at supporting fully tax compliant builders and moving activity out of the shadow economy into the legitimate economy as all expenditure and relief claims have to be registered electronically with the Revenue Commissioners.

In relation to the Deputy's query as to whether the HRI will be expanded, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions. However, as with all tax reliefs, the HRI will be considered as part of the forthcoming Budget and Finance Bill and any announcements will be made on Budget Day.

Tax Reliefs Availability

Questions (64)

Peadar Tóibín

Question:

64. Deputy Peadar Tóibín asked the Minister for Finance if he has explored the area of tax incentives for the renovation of old homesteads and abandoned dwellings in rural areas; and if there are estimates concerning the costs of such incentives. [27765/15]

View answer

Written answers

In the recent past, under the Rural Renewal and Town Renewal Schemes, tax relief in the form of Owner/Occupier relief and Section 23 rented residential relief was made available for expenditure incurred on the construction, conversion and refurbishment of residential property. The Town Renewal Scheme applied in certain designated towns while the Rural Renewal Scheme applied in the counties of Cavan, Leitrim, Longford, Roscommon and Sligo. Owner/Occupier relief was given as a deduction from total income at a rate of 5% per annum over 10 years in the case of construction expenditure and 10% per annum over 10 years in the case of conversion or refurbishment expenditure.   Section 23 relief was given as a deduction from the landlord's rental income. The latest date for incurring expenditure which could qualify for relief under these schemes was 31 July 2008.  However, an earlier termination date could have applied where certain conditions were not met.

In addition to the above schemes, the Countrywide Refurbishment Scheme provided for tax relief in the form of a deduction from the landlord's rental income of expenditure incurred on the refurbishment of a rented residential property.  The expenditure was written off over 7 years at a rate of 15% per annum. This scheme applied throughout the country. The termination date for incurring expenditure which could qualify for relief under this scheme was 31 July 2008.

The latest information available on the cost of the Town Renewal and Rural Renewal schemes is a provisional cost for 2013 as follows:

Scheme

Number of Claimants

Tax Cost €m

Town Renewal

739

10.6

Rural Renewal

2,098

17.9

This information is based on tax returns of self-assessed individuals and companies. The estimated relief claimed has assumed tax forgone at the 41% rate for 2013 in the case of individuals and 12.5% in the case of companies. The figures shown correspond to the maximum Exchequer cost in terms of Income Tax and Corporation Tax. There is no statistical information on the Countrywide Refurbishment scheme.

However, as the Deputy will be aware, the Home Renovation Incentive (HRI) provides a tax relief by way of an income tax credit on repair, renovation or improvements works on principal private residences or rental properties by tax compliant contractors. HRI came into operation on 25 October 2013, with rental properties being brought within it from 15 October 2014. It will run until 31 December 2015. A qualifying residence under HRI includes a residential premises which have previously been occupied as a residence and which is acquired by an individual for the purposes of occupation by the individual as his or her principal private residence. The premises must be so occupied upon completion of the qualifying work.  HRI would, therefore, be available towards the renovation of the type of properties referred to by the Deputy.

Data relating to the HRI are available in the "Tax Expenditures" section of the statistics page of the Revenue website at www.revenue.ie/en/about/statistics/hri-stats.pdf. These statistics will be updated in due course.

Departmental Schemes

Questions (65)

Noel Harrington

Question:

65. Deputy Noel Harrington asked the Minister for Finance if he will provide a list of each of the current grant schemes administrated by his Department which are available to community groups or projects; the amount paid for each of these schemes for each of the past four years; and if he will make a statement on the matter. [27782/15]

View answer

Written answers

My Department has not administered any grant schemes for community groups or projects over the past four years. 

Tax Code

Questions (66, 69, 75)

Anthony Lawlor

Question:

66. Deputy Anthony Lawlor asked the Minister for Finance further to Parliamentary Question No. 127 of 6 May 2015, if his Department had any further communication with the Revenue Commissioners regarding the 5,300 Standard Life shareholders whose option to receive money from the sale of the business as a capital investment was not received in time due to postal delays; if he will issue an instruction to the Revenue Commissioners to grant an exemption to these persons from the tax liability they now incur through no fault of their own; and if he will make a statement on the matter. [27803/15]

View answer

Tony McLoughlin

Question:

69. Deputy Tony McLoughlin asked the Minister for Finance if he is aware that over 5,000 Standard Life Irish shareholders (details supplied) have been affected financially by the delayed delivery of post by nearly six weeks; his views on the issue; and if he can offer the affected persons any possible tax reduction, given that it was a serious failure in the postal services that has resulted in the financial loss to shareholders; and if he will make a statement on the matter. [27860/15]

View answer

Michael Healy-Rae

Question:

75. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding shareholders of Standard Life; and if he will make a statement on the matter. [27929/15]

View answer

Written answers

I propose to take Questions Nos. 66, 69 and 75 together.

The UK company Standard Life plc, 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.

The Revenue Commissioners have informed me that, 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. I am not in a position to instruct the Revenue Commissioners to apply a different treatment as suggested in the first question.

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 that 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.

I am not in a position to say who or what is responsible for the problem that has arisen for the Irish shareholders in Standard Life plc. While I can understand the frustration of the shareholders, I do not think it an unreasonable point to make that the State should not be required to intervene by way of changing tax legislation on each occasion that a difficulty arises resulting from the administrative arrangements put in place by commercial public limited companies for dealing with their shareholders.

All that said, I will give careful consideration to the views and concerns expressed by the various Deputies, as well as those of others that have been expressed to me in this matter, in the course of my preparations for the forthcoming Finance Bill.

Insurance Industry Regulation

Questions (67)

Seán Crowe

Question:

67. Deputy Seán Crowe asked the Minister for Finance if he is aware of the practice in whole-of-life insurance policies where the premium continues to rise as the customer ages; his views that this practice is in line with regulatory norms; and if he will make a statement on the matter. [27823/15]

View answer

Written answers

At the outset it should be noted that the Central Bank has the responsibility for day to day regulatory issues, and 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 services firms (including all insurance companies) should interact with their customers. The Central Bank advise me that the Code 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 claims volumes and the nature of the product.

"Whole of Life" policies cover the policyholder for their entire lifetime, or for as long as the policyholder wishes to continue to pay premiums. 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 www.financialombudsman.ie/.

Top
Share