Written Answers Nos. 221-237
221. Deputy Michael McGrath asked the Minister for Finance if he will provide an update on considerations by the Central Bank of Ireland on moving its Tree of Gold to its new headquarters, and the potential cost of moving it; and if he will make a statement on the matter. [30294/15]
View answerI am informed by the Central Bank that the decisions and the costs in relation to Crann an Óir are part of the Central Bank's wider considerations in relation to the move to the new headquarters building on North Wall Quay.
A range of options are currently being considered, however, no final decision has been made on the matter.
222. Deputy Michael McGrath asked the Minister for Finance if he will provide an update on the Central Bank of Ireland moving its headquarters to the North Wall in Dublin 1; the costs incurred in the project to date; the date on which the move will be completed; and if he will make a statement on the matter. [30295/15]
View answerI am informed by the Central Bank that the total costs incurred on the project to 30 May 2015 amount to €17.8 million.
In terms of timelines, I am informed by the Central Bank that the current programme foresees completion of construction on site in the last quarter of 2016 with the commencement of occupation of staff thereafter.
223. Deputy Ruth Coppinger asked the Minister for Finance if he will report on the negotiations regarding the third memorandum for Greece held on 11 and 12 July 2015 in Brussels in Belgium, and if he will make a statement on the result of these negotiations. [30303/15]
View answer227. Deputy Paul Murphy asked the Minister for Finance if he will report on his discussions with his European Union counterparts from 11 to 13 July 2015 regarding the Greek financial situation. [30378/15]
View answerI propose to take Questions Nos. 223 and 227 together.
Following a request by the Greek authorities for financial assistance from the European Stability Mechanism (ESM), meetings of euro area Finance Ministers (the Eurogroup) and Heads of State or Government (the HoSG) of the euro area Member States (Euro Summit) were held over the past weekend. The HoSG agreed in principle that they are ready to start negotiations on an ESM financial assistance programme for Greece. The Euro Summit statement details the conditions and next steps that must be taken before negotiations can formally begin.
It is important to note that Monday's agreement is not a deal, it only sets out the modalities for the conduct of negotiations with a view to reaching agreement. In particular, given the need for the Greek authorities to rebuild trust, a pre-requisite for a possible ESM programme, the Greek authorities committed to legislate a first set of measures by 15th July and a second set of measures by 22nd July. Only after the legal implementation of the first set of agreed measures as well as endorsement by the Greek Parliament, verified by the Institutions and the Eurogroup, may a decision to mandate the Institutions to negotiate a new Memorandum of Understanding (MoU) be taken.
Yesterday (15th July) the Greek Parliament adopted all of the commitments specified in the Euro Statement, and this is to be welcomed. The Eurogroup has, accordingly, decided to grant in principle a 3-year ESM programme to Greece, subject to the completion of relevant national procedures.
224. Deputy Brendan Smith asked the Minister for Finance further to Parliamentary Question No. 231 of 16 June 2015, if he will provide a breakdown of the legal and professional fees as listed on page 62 of the Irish Bank Resolution Corporation's report of 12 March 2015; and if he will make a statement on the matter. [30316/15]
View answerAs the Deputy is aware the progress update report of 12 March 2015 provides details of the fees paid to A&L Goodbody, Linklaters and other legal advisers to 31 December 2014. I am advised by the Special Liquidators that they will not be providing a further breakdown of the fees incurred/paid due to commercial confidentiality (and cognisant of ongoing litigation) and also solicitor/client confidentiality.
The progress update report of 12 March 2015 can be found through the following link http://www.finance.gov.ie/sites/default/files/DOF_IBRC_Progress%20update%20report%20to%2031%20Dec%2014.pdf.
225. Deputy Lucinda Creighton asked the Minister for Finance if a person (details supplied) in Dublin 4 who is paying local property tax by weekly instalments, by arrangement, is entitled to a tax clearance certificate. [30318/15]
View answerI am advised by the Revenue Commissioners that following direct contact with the person concerned, his tax affairs are now regularised to Revenue's satisfaction and a tax clearance certificate will be issued within the next few days.
226. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 71 of 16 January 2014, if he will provide an update on the status of the tax audit concerned; and if he will make a statement on the matter. [30361/15]
View answerAs the Deputy will be aware the terms of reference of the proposed Commission of Investigation in relation to IBRC include the following explicit term of reference (1b) dealing with issues of public concern.
The Commission shall investigate all transactions, activities and management decisions, other than those relating solely to the acquisition of assets by NAMA which occurred during the relevant period and which "are specifically identified by the Commission as giving rise or likely to give rise to potential public concern, in respect of the ultimate returns to the taxpayer".
Both Houses of the Oireachtas have approved the terms of reference. It is important that I do not interfere with or prejudice the important work to be conducted by the Commission of Investigation. In those circumstances I have received legal advice that it would be inappropriate for me to comment publicly in relation to certain matters which fall under the scope of the Commission of Investigation.
228. Deputy Paul Murphy asked the Minister for Finance if he will provide the latest available statistics comparing the general government debt and gross national debt ratio of Ireland to European Union and eurozone countries, and other Organisation for Economic Co-operation and Development countries. [30400/15]
View answerThe information requested by the Deputy is available on Eurostat's and the OECD's websites. For convenience the requested information is reproduced in the following tables.
The latest available data on Eurostat's website are for 2014 and are presented in table 1. For comparative purposes with the OECD's data, the 2013 ratio is also shown. The OECD's website is not fully populated with data for 2014, hence the general government debt ratio for 2013 is included in table 2.
Gross debt according to the Maastricht criterion (basis for Eurostat's data) differs from the System of National Accounts (SNA) based general government gross financial liabilities concept of the OECD in essentially two respects. First, gross debt according to the Maastricht criterion does not include, in the terminology of the SNA, trade credits and advances. Second, there is a difference in valuation methodology in that government bonds are to be valued at nominal values according to the Maastricht definition, but at market value or at issue price plus accrued interest according to SNA rules.
Table 1 - General Government Debt (% GDP) for EU Member States
|
Country |
2013 |
2014 |
|
Belgium |
104.4 |
106.5 |
|
Bulgaria |
18.3 |
27.6 |
|
Czech Republic |
45.0 |
42.6 |
|
Denmark |
45.0 |
45.2 |
|
Germany |
77.1 |
74.7 |
|
Estonia |
10.1 |
10.6 |
|
Ireland |
123.2 |
109.7 |
|
Greece |
175.0 |
177.1 |
|
Spain |
92.1 |
97.7 |
|
France |
92.3 |
95.0 |
|
Croatia |
80.6 |
85.0 |
|
Italy |
128.5 |
132.1 |
|
Cyprus |
102.2 |
107.5 |
|
Latvia |
38.2 |
40.0 |
|
Lithuania |
38.8 |
40.9 |
|
Luxembourg |
24.0 |
23.6 |
|
Hungary |
77.3 |
76.9 |
|
Malta |
69.2 |
68.0 |
|
Netherlands |
68.6 |
68.8 |
|
Austria |
80.9 |
84.5 |
|
Poland |
55.7 |
50.1 |
|
Portugal |
129.7 |
130.2 |
|
Romania |
38.0 |
39.8 |
|
Slovenia |
70.3 |
80.9 |
|
Slovakia |
54.6 |
53.6 |
|
Finland |
55.8 |
59.3 |
|
Sweden |
38.7 |
43.9 |
|
United Kingdom |
87.3 |
89.4 |
Source: Eurostat
Table 2 - General Government Debt (% GDP) for OECD countries
|
Country |
2013 |
|
Australia |
58.6 |
|
Austria |
89.2 |
|
Belgium |
117.6 |
|
Canada |
105.7 |
|
Chile |
19.4 |
|
Czech Republic |
58.8 |
|
Denmark |
57.3 |
|
Estonia |
13.5 |
|
Finland |
64.7 |
|
France |
110.4 |
|
Germany |
81.5 |
|
Greece |
179.2 |
|
Hungary |
96.6 |
|
Iceland |
112.0 |
|
Ireland |
136.7 |
|
Israel |
77.5 |
|
Italy |
143.0 |
|
Japan |
239.3 |
|
Luxembourg |
29.7 |
|
Netherlands |
76.0 |
|
Norway |
34.8 |
|
Poland |
62.3 |
|
Portugal |
141.2 |
|
Slovak Republic |
60.3 |
|
Slovenia |
79.0 |
|
Spain |
102.0 |
|
Sweden |
55.6 |
|
Turkey |
39.7 |
|
United Kingdom |
100.8 |
|
United States |
121.9 |
Source: OECD
229. Deputy Paul Murphy asked the Minister for Finance if he will provide a breakdown of the annual value of all rate increases, or other forms of increase such as widening bands and changes to tax credits, using 2008 as the base year, to pay as you earn, pay related social insurance and value added tax, for each year since 2008. [30402/15]
View answerRegarding the PAYE aspect of the Deputy's question, I am informed by Revenue that applying the Income Tax rates, bands and credits which were in effect in 2008 to the estimated income tax base for 2015 would cost the Exchequer approximately €745 million.
I am advised that this is a highly indicative figure, it covers all Income Tax cases (PAYE and self-employed) and does not take into account the Universal Social Charge which came into effect in 2011 (is estimated to yield for the Exchequer €4 billion in 2015). Given updating of the ongoing Revenue databases since 2008 and changes in the size and composition of the taxpayer base, it is not feasible to estimate impact of changes on tax bases for years earlier than 2015.
In relation to VAT, I am advised that the main changes in VAT rates since 2008 are as follows:
- Decrease in the standard rate from 21.5% to 21% with effect from 1 January 2010. This was estimated to cost the Exchequer €167 million in Budget 2010.
- The introduction of the new second reduced rate of 9% with effect from 1 July 2011. This was estimated to cost the Exchequer €350 million in a full year.
- Increase in the standard rate from 21% to 23% with effect from 1 January 2012. This was estimated to yield an additional €670 million for the Exchequer in Budget 2012.
- Decrease in flat rate compensation percentage for farmers from 5.2% to 4.8% with effect from 1 January 2013. This was estimated to yield an additional €21 million for the Exchequer Budget 2013.
- Increase in flat rate compensation percentage for farmers from 4.8% to 5% with effect from 1 January 2013. This was estimated to cost the Exchequer €10 million in Budget 2014.
- Increase in flat rate compensation percentage for farmers from 5% to 5.2% with effect from 1 January 2015. This was estimated to cost the Exchequer €12 million in Budget 2015. The Deputy may wish to note that Revenue's Ready Reckoner, available at http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf, shows estimates of the yield or cost for a series of indicative changes to current Income Tax and VAT rates. I am advised that Revenue are not in a position to comment in relation to PRSI changes, as this is a matter for the Department of Social Protection.
230. Deputy Paul Murphy asked the Minister for Finance if he will provide a breakdown of the annual amount of revenue generated from all new personal taxes and charges introduced from 2008 onwards, including universal social charge, the household charge and the local property tax, for each year since 2008. [30403/15]
View answerI am advised by Revenue that a wide range of statistical information is available on the Revenue statistics webpage: http://www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy's Question, the latest detailed information on the tax receipts can be found in http://www.revenue.ie/en/about/statistics/index.html under the heading Revenue Net Receipts by Taxhead on an annual basis.
The relevant lines are Universal Social Charge and Local Property Tax (LPT). The LPT receipts include arrears of Household Charge where relevant. Since taking responsibility for Household Charge arrears in mid-2013, Revenue has collected receipts of around €45 million. Household Charge receipts can be viewed separately under the heading Local Property Tax Compliance Data which are also on the website. I am advised that Revenue are not in a position to comment on collection of Household Charge prior to July 2013.
231. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on the losses for subordinated and junior bondholders since 2008; and if he will make a statement on the matter. [30409/15]
View answerIn the period since 2008, significant burden-sharing has been achieved with subordinated/junior bondholders through Liability Management Exercise (LME) transactions completed by the Covered Banks. The purpose of the LMEs was to create additional core tier 1 capital and to strengthen the quality of the capital base of the Banks.
Prior to the Central Bank's PCAR, burden sharing with subordinated bondholders raised c. €10 billion of capital gains across the Covered Institutions. In the period since this Government came into power, burden sharing with subordinated bondholders has realised an additional c. €5.2 billion greatly reducing the cost of recapitalising the banks and bringing the total to more than €15 billion.
The table sets out the amount of capital raised by the Covered Banks via LMEs since the banking crisis began.
|
€m |
Burden Sharing pre March 2011 |
Burden Sharing post March 2011 |
Total |
|
AIB |
3,121 |
2,053 |
5,174 |
|
BOI |
2,469 |
2,163 |
4,632 |
|
EBS |
227 |
- |
227 |
|
PTSB |
- |
982 |
982 |
|
IBRC |
4,092 |
- |
4,092 |
|
Total |
9,909 |
5,198 |
15,107 |
232. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on all levies paid by the banks to the State, following the bank guarantee and recapitalisation, and all funds recouped by the State in respect of the banks concerned, from resales of shares and so on; and if he will make a statement on the matter. [30410/15]
View answerAs requested by the Deputy, I can confirm that total receipts of €12.74bn have been received to date, since the bank guarantee and recapitalisation of the banks, from the disposal of investments, investment income, fees and the bank levy introduced in Budget 2014. The tables provides details in this regard for the benefit of the Deputy:
1) Disposal of investments
|
Date |
Bank |
Transaction |
Proceeds including accrued interest/dividend |
|
April 2010 |
Bank of Ireland |
Cancellation of preference share warrants |
€0.49bn |
|
December 2010 |
AIB |
Cancellation of preference share warrants |
€0.05bn |
|
August 2011 |
Bank of Ireland |
Sale of equity |
€0.24bn |
|
December 2011 |
Bank of Ireland |
Sale of equity |
€0.81bn |
|
January 2013 |
Bank of Ireland |
Sale of convertible capital notes |
€1.06bn |
|
July 2013 |
Permanent TSB |
Sale of Irish Life |
€1.34bn |
|
December 2013 |
Bank of Ireland |
Sale/redemption of preference shares |
€2.05bn |
|
May 2015 |
Permanent TSB |
Buy-back of convertible capital notes |
€0.44bn |
|
May 2015 |
Permanent TSB |
Sale of equity |
€0.10bn |
|
Total proceeds from disposal of investments |
€6.58bn |
2) Income, fees and bank levy
|
Date |
Bank |
Source |
Proceeds |
|
2008 to date |
All relevant banks |
CIFS/ELG* |
€4.41bn |
|
2011 to date |
All relevant banks |
Investment income received Preference shares and convertible capital notes |
€1.62bn |
|
2014 |
State invested banks |
Bank levy Budget 2014** |
€0.13bn |
|
Total investment income, fees and bank levy |
€6.16bn |
*CIFS/ELGS includes €0.5bn from IBRC.
** State invested banks comprise AIB, Bank of Ireland and Permanent TSB. The State collected €153m from all banks subject to the bank levy introduced in Budget 2014.
233. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on the moneys saved by the State through changes achieved by negotiation on Ireland's debt since 2011; and if he will make a statement on the matter. [30411/15]
View answerThe Government has achieved significant improvements in the terms of our EU/IMF programme loans since they were initially agreed in late 2010.
The savings arising from these changes can be broken down into two elements, cash savings and a reduction in our borrowing requirement over a period of time.
In 2011, we reached agreement to reduce the cost of our EFSF loans. Similar reductions were subsequently agreed for our interest rates on the loans provided by the EFSM and by our three bilateral lenders. It is estimated that these interest rate reductions are worth around 9 billion euro over the initially envisaged 7 ½ year term.
These interest rate reductions, and more recently the early repayment of a large portion of some 18.3 billion euro - of our IMF loans, mean that we have negotiated real cash savings of over 10 billion euro.
Also in 2011, the average maturity of our EFSM and the EFSF loans was extended to 12.5 and 15 years respectively, and a further extension of up to 7 years was agreed in 2013. This has smoothed our redemption profile, improving long-term debt sustainability, and has had a positive effect on the cost of Exchequer borrowing.
The extension of maturities and the subsequent replacement of the Promissory Notes issued to the Irish Bank Resolution Corporation (IBRC) with a series of longer term Government bonds reduce the State's borrowing requirement by over 40 billion euro over the next decade, thus significantly improving the viability of the State's finances.
234. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on all moneys collected, under the higher rate of universal social charge, on bonuses paid to bankers; and if he will make a statement on the matter. [30412/15]
View answerSection 531AAD of the Taxes Consolidation Act 1997 provides for a charge on bonus payments over €20,000 paid to employees of financial institutions that received financial support from the State under the Credit Institutions (Financial Support) Act 2008. This "excess bank remuneration charge" is incorporated into the Universal Social Charge and applies in all respects as if it was USC except that it is charged at a higher rate of 45%. The charge applies for 2011 and subsequent tax years.
The revenue raised and number of individuals who have paid the charge is as follows:
|
Year |
Revenue Raised |
Number of Individuals |
|
2011 |
€1.288m |
47 |
|
2012 |
Nil |
Nil |
|
2013 |
Nil |
Nil |
|
2014 |
Nil |
Nil |
235. Deputy David Stanton asked the Minister for Finance the number of amusement machine licences in place; and the amount of revenue accrued, in each of the years 2011 to 2014 and in 2015 to date; and if he will make a statement on the matter. [30413/15]
View answerI am informed by Revenue that the number of amusement machine licences issued, for the years 2011 to 2014 and for 2015 up to 15th July are as set out in Table 1. The receipts for each licence type for these periods are as set out in Table 2. The total number of amusement machine licences currently held is 2016.
Table 1
|
Number of Licences Issued |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Number of 3 month Amusement Machine licences issued - Valid from 1 June - 31 August |
127 |
115 |
167 |
66 |
32 |
|
Number of annual Amusement Machine licences issued - expiry date 30 June |
6099 |
7246 |
6870 |
7785 |
2326 |
Table 2
|
Receipts |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Receipts - 3 month Amusement Machine licences |
€6,346 |
€4,370 |
€6,346 |
€2,508 |
€1,216 |
|
Receipts - annual Amusement Machine licences |
€780,375 |
€941,500 |
€883,625 |
€973,125 |
€290,750 |
In addition Revenue issues Amusement Machine permits, the information in respect of numbers issued and receipts are as set out in Table 3. A valid permit must firstly be in place before an application for either a 3 month or annual amusement machine licence will be considered by Revenue.
Table 3
|
Permits |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Number of Amusement Machine Permits issued |
181 |
198 |
171 |
191 |
117 |
|
Receipts - Amusement Machine Permits |
€18,300 |
€20,100 |
€18,300 |
€19,100 |
€11,700 |
236. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which any assessment has been completed with a view to identifying areas of potential flooding which could be remedied by way of improved drainage; and if he will make a statement on the matter. [29671/15]
View answerThe Office of Public Works (OPW) is currently undertaking a comprehensive programme of assessment for 300 mainly urban Areas for Further Assessment (AFAs) across all national river catchments through the Catchment Flood Risk Assessment and Management (CFRAM) Programme. The AFAs were selected following a national Preliminary Flood Risk Assessment in 2011. Under the CFRAM Programme, detailed flood mapping is being produced in order to identify and map the existing and potential future flood hazards and risks in each AFA following which Flood Risk Management Plans will be prepared and published.
The investigation of localised flooding problems is a matter for local authorities in the first instance. It is open to local authorities to undertake flood mitigation works using their own resources. It is also open to local authorities to submit an application for funding for mitigation measures under the OPW's Minor Flood Mitigation Works and Coastal Protection Scheme. The Scheme applies to small scale non-maintenance type projects estimated to cost no more than €500,000 in each instance, and where a solution can be readily identified and achieved in a short timeframe. The commencement and progression of approved projects are a matter for the local authority concerned.
To date funding of over €30m has been allocated to 33 city and county councils for over 450 flood mitigation and coastal protection projects throughout the country. Of the total funding allocated under the Scheme, to date the OPW has allocated out over €25m to local authorities for projects, which have provided protection to a significant number of residential and commercial properties.
OPW has been allocated a total of €225m for Flood Risk Management for the period 2012 - 2016. In the period 2011-2014, OPW expended over €175m on Flood Risk Management. The allocation provided has allowed OPW to continue to progress its current programmes including major flood relief schemes, the Minor Works & Coastal Protection Scheme and the CFRAM Programme.
Where a drainage scheme is carried out under the Arterial Drainage Acts 1945 and 1995, the OPW has responsibility for maintenance of the completed scheme. The average cycle of maintenance takes place once every five years. This work is carried out to ensure that the State's investment in the Arterial Drainage schemes continues to provide the intended benefits. Expenditure on this programme is approximately €15 million per annum.
Drainage Districts are areas where drainage schemes to improve land for agricultural purposes were constructed prior to the 1945 Act. The duty of maintenance for these lies with the Local Authorities concerned.
Matters pertaining to flood risk from urban drainage systems are the responsibility of the Local Authorities concerned.
It should be noted that for watercourses falling outside of the OPW and Local Authority areas of responsibility, private landowners generally have responsibility for the maintenance of these.
237. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if it was possible when the Valuation Office had oversight for foreshores for it to value the foreshore as land within the meaning of section 3 of the Valuation Act 2001; if so, when that remit changed; if it has been transferred elsewhere; if not, the way it is valued; if the foreshore in question abuts a residential unit, the legal issues this creates in the context of ground rent and lease agreements; if this issue is covered by legislation, the details of that legislation; and if he will make a statement on the matter. [29845/15]
View answerAs I indicated in my reply of 14 July to Parliamentary Question No. 322, the Valuation Act 2001 provides in Schedule 3, paragraphs 1(a) and (b) that all buildings and lands used for any purpose including constructions affixed thereto are rateable. The basic premise under the Act is that all interests (including buildings) and all developed land are rateable unless expressly exempted under Schedule 4.
For rateable valuation purposes, the administrative boundary area, defines the jurisdiction of the rating authority area concerned at a particular point in time. It may be noted that a rating authority may apply to have its administrative boundary altered in accordance with the provisions of the Boundary Survey (Ireland) Acts 1854-59.
The foreshore, under Irish legislation, extends from the mean High Water Mark to a point 12 nautical miles from the Low Water Mark. Section 227 of the Local Government Act, 2001 provides, inter alia, that land which is above the ordinary high water mark for the time being and which is formed by reclamation or other construction works or by natural accretion or otherwise shall, notwithstanding the provisions of any other enactment, for all purposes, including all functions conferred on a local authority by this or any other enactment, be included in and form part of the county or city to which it is contiguous or connected or where it adjoins or is connected to more than one such county or city.
The Valuation Tribunal determination in Appeal No. VA12/1/016 delivered in August 2012 said that the provisions of section 227 do not apply to land that is not above the high water mark.
The remit of the Valuation Office regarding valuation for rating purposes has not changed. It is responsible for drawing up and maintaining valuations of properties on rating authority valuation lists which are used in the calculation of rates by Local Authorities. The Valuation Office never had oversight of foreshore. This is currently the responsibility of the Minister for the Environment, Community and Local Government. The Valuation Office has from time to time provided an advisory valuation service to the Department responsible for the administration and oversight of foreshore.
