Thursday, 9 Jul 2015

Written Answers Nos. 102-111

Data Protection

Questions (103)

Catherine Murphy

Question:

103. Deputy Catherine Murphy asked the Tánaiste and Minister for Social Protection if she is aware that a significant data breach occurred within her Department with regard to a person (details supplied); if she is aware that as a consequence of the mistake, child benefit was discontinued for this person who is a lone parent; that due to the nature of the breach other significant negative consequences for this person and their child may have arisen; the steps her Department has taken to rectify the situation; if the Data Protection Commissioner has been made aware of the breach; and if she will make a statement on the matter. [28190/15]

Written answers

Tánaiste and Minister for Social Protection

The issue referred to arose from information received from another State Agency in relation to an individual. When they matched the information an incorrect Personal Public Service Number was assigned and the information was passed to child benefit section for attention.

As a result, a payment stop was placed on the child benefit claim from July 2015. Once the person concerned made child benefit section aware of the error contained in the data, the stop was immediately lifted and payment for July was issued on the due date.

The Department has acknowledged the error in a letter to the person concerned and apologises unreservedly for the unnecessary distress caused. The Department has not contacted the Data Protection Commissioner in relation to this case as there was no data breach in DSP in this instance and no personal data was put at risk of unauthorised disclosure.

Community Employment Schemes Operation

Questions (104)

Martin Heydon

Question:

104. Deputy Martin Heydon asked the Tánaiste and Minister for Social Protection if her Department will consider funding a pension scheme or an ex gratia lump sum on retirement to community employment supervisors and assistant supervisors in view of the Labour Court recommendation, LCR 19293; and if she will make a statement on the matter. [28197/15]

Written answers

Minister of State at the Department of Social Protection

The Deputy will be aware that CE supervisors are the employees of private companies. In the circumstances, it is not possible for the State to take over responsibility for funding pension arrangements for employees of private companies, even where those companies are reliant on State funding. This position was confirmed by the Department of Public Expenditure & Reform (D/PER) to this Department in March of this year.

The D/PER's position is that private companies contracted by the State to provide a service, including those in the community sector, must manage their expenditure pressures, including labour and pension costs, from within existing funding levels.

It should be noted that the Department of Social Protection is not the employer of CE supervisors and such employees are not public servants. They are employees of limited companies that receive public funding. If this pension claim was to be funded by the State, it would have an impact on pay costs and would result in potential claims from employees of other companies that receive State funding and operate in the community and voluntary sectors.

Tax Code

Questions (105)

Willie Penrose

Question:

105. Deputy Willie Penrose asked the Minister for Finance the legislative basis underpinning the obligation for employers to provide employees with their P45s upon cessation of employment; if there is any mechanism to compel employers to provide employees with this important document; the penalties that are attached to employers who fail to comply with their statutory obligations; and if he will make a statement on the matter. [28102/15]

Written answers

Minister for Finance

The legal basis for the operation of the Pay As You Earn (PAYE) system by employers is the Income Tax (Employments) (Consolidated) Regulations, 2001. Regulation 20 provides that an employer must issue a Form P45 immediately an employee ceases employment. Section 987 of the Taxes Consolidation Acts 1997 provides for a penalty of €4,000 where an employer fails to issue a P45.   If the employer is a body of persons, the secretary is liable to a separate penalty of €3,000.

I have been advised by the Revenue Commissioners that employers obligations in this regard are included in their Employers Guide to PAYE. A notice from Revenue to employers in June 2014 highlighted the importance of giving an employee a Form P45 immediately on cessation.   

I am informed by the Revenue Commissioners that instances where an employee has not been provided with a Form P45 should be brought to their attention through the employee's local Revenue District. If the Deputy has specific information in relation to non-compliance with the obligation to issue a Form P45 upon cessation of employment, he may wish to follow-up directly with Revenue in that regard.

Tax Code

Questions (106)

Shane Ross

Question:

106. Deputy Shane Ross asked the Minister for Finance if he will consider including rental income derived from AirBnB rentals under the rent-a-room relief, as opposed to it being subject to income tax, as is presently the case; if he considers there is an unfair distinction between sources of rental income; and if he will make a statement on the matter. [28023/15]

Written answers

Minister for Finance

I have no plans to extend the rent-a-room scheme to include guest accommodation lettings under AirBnB. The rent-a-room scheme is intended to increase the supply of rental accommodation by incentivising homeowners to rent out rooms in their principal primary residences to individuals on a residential basis.

A copy of an e-brief in relation to the interaction between AirBnB and rent-a-room relief was issued by the Revenue Commissioners on 03 February 2015. This e-Brief can be found on the Revenue website at www.revenue.ie/en/practitioner/ebrief/2015/no-212015.html.

Tax Code

Questions (107)

Terence Flanagan

Question:

107. Deputy Terence Flanagan asked the Minister for Finance his views on a matter (details supplied) regarding tax individualisation; and if he will make a statement on the matter. [28046/15]

Written answers

Minister for Finance

The system of individualisation has been in the tax code since 1999. It is my view that individualisation has now bedded into the tax system to a degree where it cannot be changed easily, and there are no plans to do so. To complete or to reverse individualisation would cost in the region of €800 million.

The issue of tax individualisation was considered by the Commission on Taxation in 2009 and that body recommended that no change should be made to the current system. It concluded that the current system represents a balance between, on the one hand, acknowledging the choices families make in caring for children and, on the other, taking account of the need to encourage labour market participation. 

I would point out that the changes to the income tax system included in Budget 2015 mean that all those who paid Income Tax and / or USC in 2014 will see a reduction in their tax bill for 2015 where incomes are equal. I intend to continue to reduce the tax burden on low and middle income earners in this manner in future budgets, subject to having the required fiscal space.

Banking Sector

Questions (108)

Michael McGrath

Question:

108. Deputy Michael McGrath asked the Minister for Finance if qualifying loans in the private banking unit of the former Anglo Irish Bank transferred across to the National Asset Management Agency in the normal way; and if he will make a statement on the matter. [28047/15]

Written answers

Minister for Finance

Anglo Irish Bank Corporation Ltd and each subsidiary of Anglo Irish Bank Corporation Ltd were designated as a participating institution under the NAMA 2009 Act by the then Minister for Finance in February 2010. I am advised that  as part of the acquisition process NAMA acquired eligible bank assets from the PI and bank assets from within the private banking unit of Anglo Irish Bank may have been acquired. Based on the information provided to NAMA on acquisition it is not possible to identify the different business units from which bank assets were acquired. All acquired bank assets were subject to the EU approved valuation process.

Price Inflation

Questions (109)

Michael McGrath

Question:

109. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, for the years 2004 to 2014, the annual increase in the price of a standard pack of 20 cigarettes in cents; the percentage increase; the inflation rate for each of the years; and the same for a 25g pack of roll-your-own tobacco. [28053/15]

Written answers

Minister for Finance

The annual increase in the price of the most popular price category (MPPC) of 20 cigarettes for the years 2004 to 2014, together with the percentage increase, is shown in the following table. Please note that all figures are shown in cents. The same information is not available for a pack of roll your own tobacco.

Budget Changes and Trade Increases Expressed in Cents

Year	MPPC	Budget Increase	Trade Increase	MPPC  % y-o-y change	Consumer Price Index Change
2004	612.0
			13.0
	625.0			2.1%	2.2%
2005			10.0
	635.0			1.6%	2.5%
2006			20.0
	655.0
06-Dec-06		50.0
	705.0			11.0%	4.0%
2007			10.0
	715.0
05-Dec-07		30.0
	745.0			5.7%	4.9%
2008			10.0
	755.0
14-Oct-08		50.0
	805.0
01-Dec-08		2.7
	807.7
			2.3
	810.0			8.7%	4.1
07-Apr-09		25.0
	835.0
2009			10.0
	845.0			4.3%	-4.5%
01-Jan-10		-3.5
	841.5
2010			13.5
	855.0			1.2%	-1.0%
2011			10.0
	865.0
06-Dec-11		25.0
	890.0			4.1%	2.6%
01-Jan-12	910.0	19.3	0.7
01-May-12	910.0
			10.0
	920.0
06-Dec-12		10.0
	930.0			4.5%	1.7%
2013			10.0
	940.0
15-Oct-13		10.0
	950.0			2.2%	0.5%
2014			10.0
	960.0
14-Oct-14		40.0
	1,000.0			5.3%	0.2%

Eurozone Issues

Questions (110)

Thomas P. Broughan

Question:

110. Deputy Thomas P. Broughan asked the Minister for Finance if given the continuing threat to the stability of the eurozone he will join with the other 19 eurozone finance Ministers to organise a debt conference to address the huge debt and interest payments hanging over eurozone states, such as Ireland, Portugal and Greece; and if he will make a statement on the matter. [28080/15]

Written answers

Minister for Finance

As I have outlined previously, there are no plans to organise a Debt Conference. 

Issues related to public debt in the euro area Member States are dealt with in the context of the Eurogroup - the Finance Ministers of the democratically-elected Governments of the euro area Member States.  The Heads of State or Government of the euro area Member States can also have a role. 

The Irish Government has succeeded in reducing the burden of public debt, in cooperation with our European partners, with the extension of maturities on our EFSF and EFSM loans, the reduction of interest rates, the replacement of the promissory notes with long-term bonds and the replacement of IMF loans with cheaper market-based funding.  The Portuguese Government has also succeeded in reducing the burden of its debt.

The Eurogroup has also been proactive in reducing the burden of Greek debt and, as I have said repeatedly, I am open to further maturity extensions, longer grace periods, etc. in order to reduce the burden further.  However, I am also strongly of the view that Greece must reform its economy, improve its competitiveness and address structural weaknesses such as weak tax compliance.

Finally, I want to stress that as a union we are in a much stronger place than during the sovereign debt crisis in the early years of this decade. Financial market developments in the euro area (outside of Greece) have been relatively calm in recent days, suggesting that the firewalls created and the governance changes made during the crisis are having the desired effect.

Eurozone Issues

Questions (111)

Thomas P. Broughan

Question:

111. Deputy Thomas P. Broughan asked the Minister for Finance if he will propose to his eurozone fellow finance Ministers a full two-year moratorium on Greek debt repayments to enable the Greek Government to re-stabilise the Greek economy; if he will follow up with proposals to park and waive a large portion of this debt for Greece and Ireland; and if he will make a statement on the matter. [28081/15]

Written answers

Minister for Finance

It is important to recognise that in relation to the burden of Greek debt significant concessions have already been granted.  In November 2012, for example, the Eurogroup agreed to a lowering by 100 basis points of the interest rate charged to Greece on the loans provided in the context of the Greek Loan Facility. An extension of maturity of the loans by 15 years was also decided.

Currently, there is a moratorium on repayments of principal on the Greek Loan Facility until the early part of the next decade.  Moreover, there are no interest or principal repayments due on the Greek EFSF loans until 2023. 

I have repeatedly said that I am open to further maturity extensions, longer grace periods, etc. in order to reduce further the burden of Greek debt.

This is what we have done in Ireland.  We have restructured our debt - extending the maturities on the EFSF and EFSM loans, replacing the promissory notes with long-term bonds, etc. - in order to reduce the burden of debt.