Written Answers Nos. 368-397
368. Deputy Paul Murphy asked the Minister for Finance if he will provide as much information as is available on the sources-creditors-holders of the national debt, including the nationality of the holders of Government bonds and other forms of debt and whether the debt is owed to public-private institutions. [31633/15]
View answerThe table below sets out that Gross National Debt stood at €201.25 billion at end-August 2015, the largest components being Government bonds and loans under the EU/IMF Programme. Together, these categories of debt accounted for €173.55 billion or 86% of Gross National Debt.
A further €16.62 billion or 8% of the Gross National Debt was in the form of State Savings products such as Savings Certificates, Savings Bonds, National Solidarity Bonds and Prize Bonds.
With regard to the ownership of Government bonds, while the Central Bank of Ireland is the registrar for Irish Government bonds, the manner in which they are settled and registered does not allow for the identification of individual holders. However, the Central Bank publishes some information on holders of Irish Government bonds, disaggregated between resident and non-resident holders. The most recent estimates suggest that non-resident investors held 59 per cent (or €73.3 billion) of long-term Irish Government bonds in July 2015. Irish-resident credit institutions accounted for 93 per cent (or €47.4 billion) of all resident holdings.
Furthermore, the European Central Bank (ECB) announced in February 2015 that it held €9.7 billion nominal of Irish Government bonds under its Securities Markets Programme (SMP) at end-2014.
Ireland's creditors under the EU/IMF Programme are listed in the table below.
|
National Debt at End-August 2015
|
€bn |
|
Government Bonds |
123.88 |
|
EU/IMF Programme
|
49.67 |
|
- International Monetary Fund (IMF) - European Financial Stability Facility (EFSF) * - European Financial Stabilisation Mechanism (EFSM) - UK Bilateral Loan - Danish Bilateral Loan - Swedish Bilateral Loan
|
4.34 17.88 22.50 3.94 0.40 0.60 |
|
Other Medium and Long Term Debt including European Investment Bank/Council of Europe Development Bank loans |
1.07 |
|
State Savings Schemes** |
16.62 |
|
Short-Term Debt including Treasury Bills, Exchequer Notes and Commercial Paper |
10.02 |
|
Gross National Debt |
201.25 |
|
Cash and other Financial Assets*** |
-17.22 |
|
National Debt |
184.03 |
Notes:
Source: NTMA
Rounding can affect totals.
Figures are unaudited and take account of the effect of currency hedging transactions.
* A prepaid margin of €0.53 billion was deducted from the EFSF loan of €4.19 billion drawn down on 1 February 2011 giving a net liability of €3.66 billion. The total net liability of €17.88 billion included in the National Debt at end August 2015 takes account of this reduction.
** State Savings Schemes also include moneys invested by depositors in the Post Office Savings Bank (POSB). These funds are mainly lent to the Exchequer as short-term advances and through the purchase of Irish Government Bonds. Taking into account the POSB, total State Savings outstanding were €19.3 billion at end August 2015.
*** Of which, Exchequer cash balances and other short-term investments accounted for €14.4 billion at end August 2015.
369. Deputy Thomas P. Broughan asked the Minister for Finance in relation to the recent publication of the quarterly national accounts, if he will provide an estimate of the amount of contractually produced Irish exports, especially in the pharma sector, that are carried out abroad by foreign workforce; and if he will make a statement on the matter. [31637/15]
View answerI am aware of the phenomenon of 'contracted manufacturing'. This issue has been under observation for some time by my Department. Indeed, the economic review and outlook that accompanied Budget 2015 contained a detailed explanation of the issue.
(http://www.budget.gov.ie/Budgets/2015/Documents/141014%20Economic%20and%20Fiscal%20Outlook%20REV%202.pdf).
Exports grew by 13.6 per cent year-on-year in the second quarter of this year, with goods exports up over 16 per cent. Part of the strong performance in goods exports can be attributed to what is known as 'contracted manufacturing'.
This contracted production occurs when an Irish-resident (though not necessarily Irish-owned) enterprise contracts a plant abroad to produce a good for supply to a third country. The sale of the good is recorded as an Irish export as the economic ownership of the good prior to sale is regarded as belonging to the Irish-resident enterprise. Imports (for example patents and royalty fees) used in the production process are also recorded as Irish imports.
It is important to stress that the contribution of contracted production to overall exports cannot be calculated with precision with the publicly available data. It is also important to note that this phenomenon involves very little employment effect or second-round impact on the wider economy. In fact, the CSO confirmed that last year contract manufacturing had a negligible impact on GDP growth; this is because the phenomenon involves an increase in the level of both exports and imports, with little net impact.
Notwithstanding these developments relating to contracted production, there is no doubt that the recovery has gained momentum this year and that it has broadened to include a recovery in domestic demand. This is very important given the jobs and tax rich nature of domestic demand.
370. Deputy Thomas P. Broughan asked the Minister for Finance when he expects to have to address renewed proposals from the European Union for common consolidated corporate tax base legislation across the EU; the counter proposals that will be made; and if he will make a statement on the matter. [31638/15]
View answerIn its June 2015 'Action Plan on Corporate Taxation', the European Commission announced that it would re-launch its Common Consolidated Corporate Tax Base (CCCTB) proposal sometime in 2016.
The re-launched proposal will be debated by Member States in two stages. The Commission will first seek agreement on a common corporate tax base. This will involve negotiations to attempt to agree a single set of rules that companies operating within the EU would use to calculate their taxable income. The issue of consolidation will then be addressed at a later date. I welcome the pragmatic decision from the Commission to postpone the consolidation element of the CCCTB proposal as part of its re-launch. This is in line with the approach agreed by Member States in the Irish Presidency Roadmap in 2013.
While we have yet to see the exact details of the re-launched CCCTB proposal, and won't see them for some months, Ireland will engage constructively in these matters, as we always do, while holding a firm line that matters of direct taxation remain a member state competence and that unanimity in tax matters is maintained.
371. Deputy Michael McGrath asked the Minister for Finance if the fiscal room of €1.2-€1.5billion identified for 2016 refers to the full year effect of taxation and other measures, or the first year effect; and if he will make a statement on the matter. [31654/15]
View answerIt is intended that the fiscal space of €1.2 billion to €1.5 billion outlined in the Spring Economic Statement will be split evenly between taxation and expenditure. With regard to taxation, the fiscal space relates specifically to first year effect of measures introduced in 2016. Turning to expenditure, the fiscal space will be reflected in the year-on-year increase in expenditure.
373. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter regarding an insurance company (details supplied) and tax implications for shareholders; and if he will make a statement on the matter. [31668/15]
View answerEarlier this year, 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. From an Irish tax perspective, the position under current legislation 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 aware of the concerns raised about those Standard Life shareholders here whose options for their payment to be treated as capital were delayed in the post resulting in them receiving an income payment and potentially having a higher tax liability. I have already committed to giving careful consideration to this issue in the course of my preparations for the forthcoming Finance Bill and this remains my position.
374. Deputy Maureen O'Sullivan asked the Minister for Finance the extent of seizures of illegal cigarettes in the past 12 months; the amount of revenue lost to the State; and his plans to combat the very serious matter of illegal cigarettes being brought into and sold in this country. [27070/15]
View answerI am advised by the Revenue Commissioners that their action against the illegal trade resulted, in 2014 in the seizures of 53.4 million cigarettes. Up to end of August this year, some 44.1 million cigarettes have been seized. Notable seizures have included quantities of 7.68 million, 10.3 million and 9 million.
Combating the illegal tobacco trade has been, and continues to be, a priority for Revenue. Their actions include a range of measures to identify and target those who are engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those involved. Their multifaceted strategy also includes ongoing analysis of the nature and extent of the problem, development and sharing intelligence on a national, EU and international basis, use of analytics and deployment of technologies and optimising the deployment of resources.
A combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages contribute to the effectiveness of Revenue's goal to intercept the supply of illicit tobacco products. Revenue also target the illicit trade at post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises.
Revenue co-operates extensively with An Garda Síochána in acting against the illicit trade, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland, through a cross-border group on tobacco enforcement, to target the organised crime groups that are responsible for a large proportion of the illegal tobacco market. In addition, cooperation takes place with other tax administrations and with the European Anti-Fraud Office (OLAF) in the ongoing programmes of action at international level to tackle the illicit trade.
The extent of the illegal trade in cigarettes is estimated through annual surveys of smokers that are carried out for the Revenue Commissioners and the National Tobacco Control office of the Health Services Executive by Ipsos MRBI. Assuming that the illegal cigarettes consumed displaced the equivalent full tax paid quantities of cigarettes, the results of these surveys indicate that the loss to the Exchequer in excise duty and VAT in 2014 was of the order of €210 million.
I have introduced a number of measures in recent years to assist Revenue in dealing with tobacco smuggling and illegal tobacco sales. Measures in the Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excisable products.
In the Finance Act 2013, I introduced new offence and forfeiture measures relating to the illicit production of tobacco, including offences of keeping materials and equipment for the purposes of illicit tobacco production, and provision for forfeiture of any equipment, materials, or unmanufactured tobacco used for illicit production.
In the Finance (No. 2) Act 2013, I strengthened the obligation on a person suspected of dealing in unstamped tobacco products to provide information to a Revenue officer or a Garda and to present any tobacco products concerned for examination. This measure also allows the officer or Garda to search any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence.
I am satisfied that the current legislative framework provides an effective basis for action by Revenue against the illegal tobacco trade. I will consider any proposals for additional measures that are shown to be of assistance to Revenue in this area.
375. Deputy Peadar Tóibín asked the Minister for Finance if he and his officials have considered the introduction of an additional public banking pillar; and if he will make a statement on the matter. [28666/15]
View answerI assume the Deputy is referring to the concept of local public banking. The focus of such banks is on the needs of residents and SMEs within their own geographic catchment area. Local public banking could have the potential to complement Government policy in a range of areas such as improving competition in the banking market, augmenting competition and innovation in the SME finance market and regional development.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. As the Deputy will be aware, the Government has to date delivered a number of initiatives that increase access to finance for SMEs such as the Strategic Banking Corporation of Ireland (SBCI), the Supporting SMEs Online Tool, the Credit Guarantee Scheme, Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office.
The business model of local public banks is similar to that of the SBCI in that rather than focusing on profit maximisation, they seek to enhance the availability of finance to SMEs in their catchment areas. It is encouraging to note that the most recently published lending figures for the SBCI show that 85% of lending to date has been to regionally based SMEs. Other institutions operating in the Irish credit market such as credit unions are not profit maximising entities but have a key role to play in providing access to credit and other important services in local communities throughout the country.
Officials from my Department are considering proposals on local public banking and its potential for Ireland. They have been considering how a local public banking concept, with a focus on supporting SMEs, could complement initiatives already in existence.
376. Deputy Mattie McGrath asked the Minister for Finance his plans to cut the pension levy; and if he will make a statement on the matter. [31845/15]
View answerI assume that this question refers to the stamp duty levies applying to the assets of funded pension arrangements introduced in 2011 to pay for the Jobs Initiative, the chargeable persons for which are the trustees of pension schemes and others responsible for the management of pension fund assets.
The original 0.6% stamp duty levy on pension fund assets ended last year. The additional levy of 0.15% which I introduced for 2014 and 2015, mainly to help continue to fund Jobs Initiative, will also end after this year.
377. Deputy Olivia Mitchell asked the Minister for Finance his plans to respond positively to the Council of Europe Development Bank request to supplement its proposed new grant facility to finance emergency reception and transit centres for asylum seekers; and if he will make a statement on the matter. [31860/15]
View answerThe Council of Europe Development Bank (CEB) recently announced that it proposes to establish a new "Migrant and Refugee Fund" grant facility to finance transit and reception centres in countries affected by the unprecedented influx of refugees into Europe. The proposal for a new Fund is consistent with the primary mandate of the CEB which is to help its Member States address social problems resulting from the presence of refugees, displaced persons or migrants.
Subject to the approval of its governing bodies, the CEB proposes initially to endow the new fund with €5 million in seed money. In addition, the Bank's Member States and other potential donors have been invited to support the initiative with a grant contribution, with the CEB expecting to raise an additional €20 million.
The CEB has started consultations with its Member States with a view to activating this fund as well as identifying suitable projects to which the fund might contribute. Ireland will engage positively in this process and my Department will engage directly with the CEB to take this forward, in consultation, in particular, with the Department of Foreign Affairs and Trade and the Department of Justice and Equality. A final decision on participation in the new Fund will require to be taken in due course by the Government, informed inter alia by these consultations and by the approach to be taken in respect of the implementation of the new Irish Refugee Protection Programme.
378. Deputy Pearse Doherty asked the Minister for Finance if he will provide a percentage and absolute breakdown of total stamp duty received on shares, between stock market traded shares and private company sale of shares. [31871/15]
View answerI am advised by the Revenue Commissioners that a breakdown of the stamp duty paid on shares between stock market traded shares and private company sale of shares as requested by the Deputy is not available. No distinction is made between companies which are incorporated in Ireland and those quoted on the Irish Stock Exchange for the purposes of stamp duty collection. As such, a breakdown of stamp duty paid is not available.
The Deputy may be interested to know that data regarding the overall amounts of stamp duty received on shares by year is available on Revenue's statistical webpage at http://www.revenue.ie/en/about/statistics/index.html. Specifically, this information can be accessed directly at http://www.revenue.ie/en/about/statistics/stamp-duty-receipts.pdf.
379. Deputy Billy Timmins asked the Minister for Finance the number of P10s returned for the years 2013 and 2014; and if he will make a statement on the matter. [31996/15]
View answerI am informed by the Revenue Commissioners that there is no P10 form or return required to be filed with them. If the Deputy wishes to clarify his request, Revenue or my Department will endeavour to assist with any further questions.
380. Deputy Brendan Griffin asked the Minister for Finance his views on the SIPTU proposal to replace the universal social charge with a social solidarity contribution, including the introduction of the SSC credit of €775 per person for all incomes up to €100,000, with minor increases in USC thereafter; if his Department has costed the proposal; if so, the overall costs to the Exchequer in the estimation of his Department; and if he will make a statement on the matter. [32026/15]
View answerThe Universal Social Charge (USC) comprises an exemption provision and is calculated on the basis of five income bands and rates (including the surcharge for certain self-assessed non-PAYE income earners). The SIPTU proposal, as I understand it, retains the USC but would introduce a Social Solidarity Contribution (SSC) credit of €775 per person for all on incomes of up to €100,000. On the basis of the current USC rates and bands, the proposed SSC credit of €775 would result in incomes up to €23,250 not having any liability to the charge. In that context it would be administratively easier to increase the USC exemption limit to €23,250 rather than introduce an SSC credit, although this would create a significant step effect within the USC system.
I am advised by the Revenue Commissioners that introducing a system that entails a credit being available to a taxpayer based on current year income would significantly increase the complexity of the operation of the USC. This is on the basis that, currently, the USC is a cumulative charge which can cater for taxpayers with multiple employments or other income.
The introduction of a credit reducing to zero when a taxpayer's income exceeds €100,000 would be very challenging both for employers and for payroll software providers in terms of the operation of the credit on a real-time basis. Revenue does not have current year, real-time information about a taxpayer's current year income and would not therefore know when a taxpayer will exceed €100,000 in earnings. As PAYE taxpayer income details are provided to Revenue by employers on the annual P35 return post year-end, Revenue would not be in a position to issue an instruction to an employer about a credit that is predicated on a level of earnings in the current year.
I am further advised by Revenue that the cost of introducing a €775 SSC credit for all USC payers with income under €100,000 is estimated at €817 million in the first year and €1,105 million in a full year.
The yield from introducing a 10% USC rate for all income over €100,000 (including a reduction in the existing surcharge of 11% to 10% for self-assessed taxpayers with non-PAYE income over €100,000) is estimated to be €62 million in the first year and €56 million in a full year. The lower full year yield reflects that in a full year (compared to the first year) the cost of reducing the existing 11% surcharge for self-assessed cases to 10% weighs more heavily on the net yield.
These estimates assume that all existing USC rates and bands remain unchanged. They are based on 2016 estimated incomes from the Revenue tax forecasting model using latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised.
The proposal suggests that the yield from the revised system is ring-fenced for social investment purposes, such as improving healthcare. The yield from USC is estimated to be €4.2 billion in 2015, and it is used to fund the State generally. If it were to be ring-fenced, the expenditure currently financed by the yield from USC that is not social investment, as defined, would have to be financed by alternative means, which could require additional taxation.
Notwithstanding the above, I will bear the proposal in mind in the context of my preparations for the upcoming Budget.
382. Deputy Pearse Doherty asked the Minister for Finance the number of properties that have been granted an exemption from the local property tax because they are affected by pyrite; and if he will make a statement on the matter. [32069/15]
View answerI am advised by Revenue that Section 10A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a temporary exemption of at least three years from the charge to Local Property Tax (LPT) for residential properties that have been certified under Regulations made by the Minister for the Environment, Community and Local Government (S.I. No 147 of 2013) as having "significant pyritic damage".
The Regulations also specify the assessment methodology that must be applied to confirm the presence of significant pyritic damage, including that the Building Condition Assessment must be carried out by a qualified competent person (I.S. 398-1:2013). The Regulations also clearly specify the type of certification that must be produced before an exemption from LPT can be granted. This is the only type of certificate that is relevant under current legislation.
Since the introduction of LPT over 2,000 property owners have claimed exemption on foot of pyritic damage. Of these, 76 cases have qualified for the exemption and Revenue has put a hold on collection in approximately 600 other cases to give the owners in question time to secure the required supporting documentation. The remaining claims were either found to be ineligible following verification checks by Revenue or did not provide the required level of supporting documentation.
A review of the operation of LPT was recently submitted to me by Dr Don Thornhill and is currently being considered by my Department. Any recommendations that are included in the review findings in regard to pyritic damage will be considered in the context of the upcoming Budget. Until then Revenue has no alternative but to apply the eligibility criteria as currently set down.
383. Deputy Finian McGrath asked the Minister for Finance the position regarding mortgage arrears in respect of a person (details supplied) in Dublin 3; and if he will make a statement on the matter. [32109/15]
View answerI appreciate the difficult position many people find themselves in with respect to mortgage arrears. While it would not be appropriate for me to intervene directly in individual cases there are a number of supports available that should be able to help. With over 118,500 restructure arrangements already in place on primary dwelling homes, it is certainly possible to resolve mortgage arrears when borrowers engage with their lender. I would strongly advise any individual dealing with debt to:
a) seek independent financial and legal advice on their specific situation and on the alternative courses of remedial action that are open to them; and
b) engage proactively with their lender in the provision of information and in timely response to communications.
There are a number of sources of independent advice on dealing with debt including:
- The Money Advice and Budgeting Service (MABS) offer advice on dealing with mortgage debt. Their web address is https://www.mabs.ie.
- The Insolvency Service of Ireland www.backontrack.ie offers professional advice and practical assistance to distressed borrowers and can be reached at 076 106 4200;
- In addition, a dedicated website, www.keepingyourhome.ie, has been put in place by the Citizen's Information Board to provide information on mortgages arrears issues. There is also a Mortgage Arrears Information Helpline to provide more tailored information to individual callers. Their contact number is 076 107 2000.
The Code of Conduct on Mortgage Arrears (the CCMA) provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender, and that long-term resolution is sought by lenders with each of their borrowers. In dealing with these difficult circumstances borrowers must be dealt with in a fair and transparent manner and on a case-by-case basis. If the person on whose behalf the Deputy raised this question is dissatisfied with the way their lender applied the CCMA, there is an appeals process and recourse to the Financial Services Ombudsman thereafter, if the complaint is not satisfactorily resolved at the appeals stage.
I would like to assure the House that the Government is acutely conscious of the impact of debt on families across the country and that is why we are determined to see it resolved.
384. Deputy Brendan Griffin asked the Minister for Finance the position regarding a matter (details supplied) in relation to the motor trade; and if he will make a statement on the matter. [32119/15]
View answerThe VAT Margin Scheme may be applied to the sale of second-hand vehicles and second-hand agricultural machinery which meet the eligibility criteria of that Scheme.
I am advised by Revenue that eligibility for the VAT Margin Scheme is a matter of fact which is not determined exclusively by the presentation of a Margin Scheme invoice. In most cases, determination of eligibility requires that the trader can demonstrate that eligible vehicles have been purchased for re-sale in circumstances where VAT was not chargeable. The onus is on the trader to establish that the vehicle meets the qualifying criteria in order to apply the Margin Scheme on the sale of the vehicle. I am also advised by Revenue that as part of its checking processes it may on the basis of its risk assessment approach, including as part of a random sampling exercise, seek confirmation of the validity and authenticity of any particular invoice.
385. Deputy Clare Daly asked the Minister for Finance the number of repossession cases where the mortgage involved was a standard variable rate for every year for the past five years; and if he will make a statement on the matter. [32171/15]
View answerThe requested breakdown of repossession cases is not available in either the Central Bank or Department of Finance statistical data on residential mortgage arrears.
More generally in terms of interest rates on outstanding loans, the most recent Central Bank of Ireland Household Credit Market Report:
(https://www.centralbank.ie/publications/Documents/Household%20Credit%20Market%20Report%202015H2.pdf) indicates that as of quarter one of 2015, 43 per cent of all principal dwelling houses (PDH) loans had a standard variable interest rate, while a further 47 per cent had tracker rates, with the remaining 10 per cent having fixed-rate contracts. The percentage of BTL loans with standard variable interest rates stands at 30 per cent.
I have just concluded a second set of meetings with senior management of Ireland's six main mortgage lenders to review mortgage interest rates and I can assure the Deputy that my Department continues to keep the situation under review. I would strongly urge all borrowers, including those with mortgage arrears, to examine the options that are now available to them to see how they can reduce their monthly mortgage payments.
386. Deputy Michael McGrath asked the Minister for Finance the current and most recently published unrealised capital gain the State has on the holdings of bonds from the promissory note arrangement; the way this gain is realised; the way this is reflected in the national accounts; and if he will make a statement on the matter. [32218/15]
View answerThe Central Bank reports annually in its Annual Report on the unrealised capital gain on the holdings of bonds from the promissory note arrangement in 2013. The 2014 Annual Report includes an unrealised capital gain on the floating rate notes of €9.1 billion.
Unrealised gains contribute to the Central Bank's accounting reserves but not to its profits, unless or until the bonds are sold. When the Central Bank sells one of these bonds, it realises a gain which is then recorded as part of its profit. While such bonds are held by the Central Bank, interest paid on them contributes to the Central Bank's profits, partly offset by the effective cost of funds to the Central Bank. The timing of the sales is a matter for the Central Bank which may elect to sell bonds at a particular time if it feels that this is the best course of action, for example, in order to take advantage of favourable market conditions. I should state clearly that the Central Bank of Ireland is independent in the exercise of its functions.
The issue of proceeds from the disposals and its impact on profit distribution is a matter for the Central Bank of Ireland. By law, the Central Bank can retain up to 20 per cent of its profits for the purpose of adding to its accounting reserves; any amount not retained is distributed to the Exchequer. According to Government accounting principles, defined by Eurostat, the surplus income paid to the Exchequer is partly treated as a capital receipt and partly as a current receipt. Only the current part serves to reduce the General Government deficit; the remainder does not impact on the deficit but does reduce Government net debt.
Further information regarding the impact of the sales of these bonds is contained in the Central Bank document - http://www.centralbank.ie/press-area/press-releases/Documents/FAQ%20Special%20Portfolio.pdf.
387. Deputy Brendan Griffin asked the Minister for Finance the reason a Home Renovation Incentive Tax Credit will not be made available in respect of a person (details supplied) in County Kerry in 2015 for works carried on in 2013; and if he will make a statement on the matter. [32226/15]
View answerI am advised by the Revenue Commissioners that the tax credit available under the Home Renovation Incentive (HRI) scheme for works carried out from 25 October 2013 to 31 December 2013 is granted by reducing an individual's tax liability for 2015 and 2016.
The tax credit will be applied to the person concerned when she files her Income Tax returns for 2015 and 2016. The 2015 return can be filed anytime after the end of 2015. The person concerned was advised of the position on 17th September. She may contact Kerry Tax District, Revenue Commissioners, Spa Road, Tralee at 066 716100 for any necessary assistance to claim the HRI tax credit.
388. Deputy Seán Kyne asked the Minister for Finance his views on the impact which limitations placed on tax reduction measures in the previous and other budgets can have on job creation and in creating a culture which may not reward initiative and work; and if he will make a statement on the matter. [32234/15]
View answerMaintaining a low tax burden on labour is key to incentivising labour supply and to preserving Ireland's attractiveness as a location for foreign and domestic capital to invest and create jobs.
The potential behavioural impacts of reduced taxes on labour are an important consideration particularly in light of the effect that lower labour taxes can have in incentivising participation in the labour market and increasing employment. Marginal tax rates are important to consider because they influence individual decisions to work more or indeed to work at all.
Improving the growth-friendly nature of the tax system involves relying to a greater extent on taxes that are less harmful to growth including through shifting the burden from labour to other taxes. Research published in a Department of Finance staff working paper has shown the potential gains to Ireland in terms of GDP and employment from revenue-neutral shifts from labour taxation to consumption and property taxes.
A fair, efficient and competitive income tax system is essential for economic growth and job creation. I have long said that the burden of the income tax system in Ireland is too high and that I would seek to reduce it as soon as it was prudent to do so. The changes to the income tax system included in Budget 2015 mean that all those who paid income tax and/or USC in 2014, including pensioners, will see a reduction in their tax bill for 2015 where incomes are unchanged.
Ireland already has one of the most progressive income tax systems in the developed world, as shown by the OECD. To preserve that progressivity, Budget 2015 also contained USC measures which have the effect of limiting the maximum benefit from this package of tax measures to approximately €14 per week for any individual taxpayer, which means that those with very high incomes will only benefit to the same extent as those with more modest incomes.
I intend to continue to make it more attractive to return to work, to stay in work and to ensure that work rewards individuals adequately. I plan to reduce the tax burden on low and middle income earners in future budgets, subject to having the required fiscal space.
390. Deputy Seán Kyne asked the Minister for Finance the status of the plans for a standard bank account and the possible use of the post office network for same, given that both are important for social inclusion; and if he will make a statement on the matter. [32248/15]
View answerThe Strategy for Financial Inclusion called for the nationwide launch of a Standard Bank Account to promote financial inclusion. A pilot project for a Standard Bank Account was run, which finished on 31 March 2013 after a 9-month pilot period. A total of 205 accounts were opened during the pilot, which the Financial Inclusion Working Group felt was disappointing.
The Report of the Working Group on the pilot project noted a number of reasons for this, including the view of stakeholders that one of the key elements required as part of the preparations for a successful national roll-out of a Standard Bank Account is greater involvement by An Post and the credit unions.
My Department is currently transposing the Payment Accounts Directive which requires that all consumers legally resident in the EU must have access to a payment account with basic features, regardless of their financial circumstances. The Directive also allows Member States to make provision to promote financial inclusion of unbanked, vulnerable consumers. The Directive must be transposed by September 2016.
My Department is carefully considering how to make progress on this issue, in light of the requirements of the Payment Accounts Directive and the experience of the Standard Bank Account pilot project. My Department is working closely on the matter with other relevant Government departments.
393. Deputy Eoghan Murphy asked the Minister for Finance the status of internal audit across his Department; internal audit's relationship with external auditors and audit committees, as well as internal audit's adherence to professional standards; and if he will make a statement on the matter. [32551/15]
View answerIn response to the Deputy's question, please find outlined below the status of internal audit across my Department; internal audit's relationship with external auditors and audit committees, as well as internal audit's adherence to professional standards.
Status of Internal Audit
The Internal Audit Unit of the Department of Public Expenditure and Reform (DPER) provides an internal audit service to DPER and to the Department of Finance (DFIN) on a shared service basis. The terms of reference of the internal audit function are set out in:
1. An internal audit charter with DPER
2. A service level agreement with DFIN
The Internal Audit Unit derives its authority from the Accounting Officer, Senior Management and the Audit Committee of each Department. It works under the general direction of the Accounting Officers in the two Departments and has the right of direct access to him/her on all internal audit matters. In both Departments, the Internal Audit Unit has unrestricted access to all functional areas, records (both manual and electronic), property, and personnel in the performance of its audits.
The IAU has a primary and secondary reporting line:
- Primary: To the Accounting Officer who has overall responsibility for the efficient and effective functioning of their specified areas of responsibility;
- Secondary: To the Audit Committee whose main responsibility is to review progress of the Internal Audit Unit quarterly and consider, at a high level, the adequacy of internal controls and the management of risk.
Relationship with external auditor (C&AG)
The Unit liaises closely with the external auditor of the two Departments (Office of the Comptroller and Auditor General) and any other external auditors who may audit schemes funded by those specified areas of responsibility of the Accounting Officers (e.g. shared services).
All internal audit reports are made available to the Office of the Comptroller and Auditor General for their review.
The external auditor meets the Head of Unit at least once annually and attends at least one audit committee meeting annually.
Relationship with Audit Committees
The role of the Audit Committee in each Department is:
1. To consider the adequacy and effectiveness of the Department's internal control systems, control environment and control procedures.
2. To provide advice and guidance in relation to the systems of risk management and internal control within the Department. The Unit reports at Audit Committee meetings at least 4 times annually. The Head of Unit has direct access to the Chair of each Audit Committee on any issue relating to internal audit and risk.
Adherence to Professional Standards
The Internal Audit Unit is guided by the Standards of the Institute of Internal Auditors which the Minister for Public Expenditure & Reform determined, in November 2012, should apply across all Departments and other Vote Holders. In line with the Standards (1300 Quality Assurance and Improvement Programme) the Unit undergoes, at least once every five years, an external assessment to evaluate the Unit's conformance with the Standards, its efficiency and effectiveness and identify any opportunities for improvement. The next assessment is planned for November 2015.
394. Deputy Paul Murphy asked the Minister for Finance the annual cost to his Department of fees paid to private for-profit companies to provide services, such as consultancy work, recruitment services and other outsourced services, for example cleaning, catering and so on; and if he will make a statement on the matter. [32714/15]
View answerThe information requested by the Deputy could not be collated in the time available. I will respond directly to the Deputy as soon as possible.
395. Deputy Michael Lowry asked the Minister for Public Expenditure and Reform if he will provide a guarantee that all sensitive personal waste data is destroyed as per European Standard EN 15713:2009 and Irish data protection legislation; if he will confirm that all vendors and contractors who are used to destroy sensitive personal data adhere to Shred Grade No.5 of the EN 15713:2009 Standard achieved on-site at the client's location which was a condition of a recent tender by the Department of Social Protection (details supplied); and if he will make a statement on the matter. [30646/15]
View answerThe Office of Government Procurement wishes to confirm that as a condition of appointment to the OGP framework agreement for the provision of waste management services all service providers are contractually obliged to be fully compliant with all relevant legislation regulatory requirements and best industry practice in the delivery of waste management services.
The Office of Government Procurement cannot speak to the requirements of individual units/Departments or their contracts or tender processes, however the Office of Government Procurement can confirm that all service providers appointed to Lot 6 (confidential material shredding) of the OGP framework agreement for the provision of waste management service are fully compliant with EN15713. As and when individual contracting authorities require confidential material shredding services, the precise levels/standards of shred will be specified and the successful service provider will be required to comply with these requirements.
396. Deputy Michael Lowry asked the Minister for Public Expenditure and Reform if all waste management service providers who were appointed to the framework for confidential shredding through the request for tenders to establish a multi-supplier framework for the provision of Waste Management Service Tender Document 16/01/2014 met all requirements outlined in the tender document; if he will confirm that all vendors who operate under Lot 6 of the tender process comply with section 1.8 Quality of the Confidential Material Shredding Proposal (details supplied); if he will confirm that all vendors and contractors comply fully with the Data Protection Acts 1988 and 2003 which insure codes of conduct issued by the Data Protection Commissioner are legally adhered to, inclusive of only registered data processors being legally allowed to process personal data for registered data controllers; if he will confirm that the three appointed framework members for confidential shredding have on-site capability to destroy sensitive data to shred No. 6 of EN 15713 which has Irish precedent; and if he will make a statement on the matter. [30647/15]
View answerThe Office of Government Procurement notes that pursuant to section 1.8 of the Request for Tenders, tenderers were required to "demonstrate their methodologies for handling confidential waste, including the pre and post shredding processes, collection and storage of confidential waste, confirmation of destruction. Tenderers were also requested to provide details of their proposals for providing full audit trails for these processes."
The Office of Government Procurement wishes to confirm that the service providers appointed to the OGP framework agreement for the provision of waste management services met all requirements outlined in the Request for Tenders and in relation to Lot 6, demonstrated their methodologies for handling confidential waste, including the pre and post shredding processes, collection and storage of confidential waste, confirmation of destruction in accordance with section 1.8 Quality of the Confidential Material Shredding Proposal.
The Data Protection Commissioner has confirmed that there is no requirement for Shredding Companies to register with their office.
The OGP framework agreement for waste management services operates on a mini-competition basis as and when individual contracting authorities require confidential material shredding services, the precise levels/standards of shred will be specified and whether shredding onsite is required and the successful service provider will be required to comply with these requirements.
Furthermore, the Office of Government Procurement's Request for Tender as issued on 16 January, 2014 was not prescriptive in relation to shred levels or whether shredding onsite is required, rather the Office of Government Procurement's Request for Tender document acknowledged the levels of shred available, but not those required under the specific mini-competitions.
397. Deputy Michael Lowry asked the Minister for Public Expenditure and Reform if all contractors and vendors who supply sensitive waste data disposal to Government Departments and offices are registered with Data Protection Commissioner Office; if these contractors and vendors can provide a certificate of registration of quality systems to I.S EN ISO 9001:2008 and provide evidence they can provide the provision of high quality security shredding on-site and off-site incorporating the shred size requirements of I.S EN 1573:2009 to suit the Department of Social Protection specific customer requirements of Shred No. 5 of I.S. EN 15713:2009 800 mm2 sized particles (details supplied); and if he will make a statement on the matter. [30648/15]
View answerThe Data Protection Commissioner has confirmed that there is no requirement for Shredding Companies to register with their office.
The Office of Government Procurement cannot speak to the requirements of individual units/Departments or their contracts or tender processes, the Office of Government Procurement can confirm that all service providers appointed to Lot 6 (confidential material shredding) of the OGP framework agreement for the provision of waste management service are accredited to ISO9001 standard incorporating requirements of ISEN 15713:2009. The OGP framework agreement for waste management services operates on a mini-competition basis as and when individual contracting authorities require confidential material shredding services the precise levels/standards of shred will be specified and whether shredding on-site is required and the successful service provider will be required to comply with these requirements.
