Written Answers Nos. 222-242
222. Deputy Michael McCarthy asked the Tánaiste and Minister for Social Protection the position regarding an application for a respite care grant by a person (details supplied) in County Cork; when a decision will be made; and if she will make a statement on the matter. [33428/15]
View answerAn application for Respite Care Grant from the person concerned was received in my Department on 2nd September 2015. A decision will be made on this application as soon as possible.
223. Deputy Peter Mathews asked the Tánaiste and Minister for Social Protection the reason a person (details supplied) in Dublin 18 cannot receive a payment under the back-to-work enterprise allowance directly into a bank account, which means the person has to personally collect the payment each week in the post office; and if she will make a statement on the matter. [33429/15]
View answerThe payment method of the back to work enterprise allowance (BTWEA) claim of the person concerned has been reviewed. The weekly monies due to the person concerned will now be paid directly into his bank account. The person concerned will be contacted shortly to be informed of the outcome of this review.
224. Deputy Noel Coonan asked the Tánaiste and Minister for Social Protection when an application for a disability allowance will be finalised for a person (details supplied) in County Tipperary; and if she will make a statement on the matter. [33435/15]
View answerA preliminary notice was received by the Department on 16th September 2015 from the person concerned which stated that he was due to cease a community employment (CE) scheme. As part of normal procedures in relation to cessation of community employment schemes, he undertook to forward his P45 once the scheme ceased. This document is required in order to re-start his disability allowance payment but has not yet been received by the Department. A reminder has issued to the person concerned to ask him to send in his P45 as soon as possible.
225. Deputy John O'Mahony asked the Tánaiste and Minister for Social Protection when a person (details supplied) in County Mayo will receive a decision on an application for a supplementary welfare allowance; and if she will make a statement on the matter. [33456/15]
View answerI am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all of the available evidence, has decided to disallow the appeal of the person concerned by way of a summary decision. The person concerned has been notified of the Appeals Officer’s decision.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
226. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he is aware that citizens and residents of this State returning home after a period working abroad are not entitled to retain their no-claims bonus for the purpose of vehicle insurance and are forced to pay the full vehicle insurance cost; the action he will take to address this problem. [32769/15]
View answerIn my role as Minister for Finance I have responsibility for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland as regulator, interfere in the provision or pricing of insurance products. The provision of insurance cover and the price at which it is offered, including the granting of no claims discounts, is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet these risks. These are considered by insurance companies on a case by case basis.
The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing, or terms and conditions of an insurance product.
Insurance Ireland has informed me that, in general terms, where there has been no motor insurance in an individual's name and there is a gap of cover of two years or more since their last insurance, the no claims discount is deemed invalid. In the case of a returning emigrant the same principle would apply. However, Insurance Ireland have further informed me that if the individual can produce confirmation that they have been continually insured and are claims free in their own name whilst they were away this would be taken into consideration.
Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. This service can be contacted at +353 1 676 1914 or by email at iis@insuranceireland.eu.
227. Deputy Mary Lou McDonald asked the Minister for Finance the number of freedom of information requests that have been submitted to the National Asset Management Agency; and of these, the number that were refused; and the reason for their refusal. [33386/15]
View answerThe Freedom of Information Act was enacted by the Oireachtas on 14th October 2014. This saw a number of new bodies, including the National Asset Management Agency, become subject to Freedom of Information legislation for the first time from 14th April 2015.
I am advised that since 14th April 2015, the National Asset Management Agency has received a total of 79 requests. In a significant number of cases, each request contained a number of separate parts to the request.
The Freedom of Information Act sets out a number of standard exemptions, which serve to protect certain information. Among these exemptions are those which relate to personal information, information covered by legal privilege, records relating to parliamentary matters, information relating to law enforcement and public safety, information obtained in confidence, commercially sensitive information and information which impacts upon the financial and economic interests of the State. In addition, certain records relating to purchasers or potential purchasers of assets or loans, market counterparties or investors or potential investors in projects, fall outside the scope of Freedom of Information, as set out in Schedule 1, Part I of the Act.
I am advised that a total of 18 requests have been refused by NAMA, according to the exemptions as set out under the Act. In some cases, a number of exemptions have been applied to the request.
In nine cases the requests have been refused because the information is not held by NAMA. In a number of other instances, the records being sought by third parties relate to the commercial and personal information of NAMA debtors and their loans.
|
Exemption applied |
Exemption |
No of requests where exemption is applied |
|
15(1)(a) |
Record does not exist |
9 |
|
15(1)(d) |
Record is already in the public domain |
2 |
|
15(1)(e) |
Publication of the record due within 12 weeks of date of the request |
1 |
|
29(1) |
Deliberative process of an FOI body |
1 |
|
30(1)(b) |
Adverse impact upon performance of an FOI body of its functions. |
3 |
|
30(1)(c) |
Disclose positions taken for the purpose of negotiations or future negotiations |
3 |
|
31(1)(a) |
Legal privilege |
2 |
|
35(1)(b) |
Disclosure would constitute breach of a duty of confidence |
7 |
|
36(1)(b) |
Commercially sensitive information |
4 |
|
37(1) |
Personal Information |
5 |
|
40 |
Financial & economic interests of the State |
1 |
|
41(1)(b) |
Non-disclosure covered by enactment |
8 |
|
Schedule 1 |
|
2 |
228. Deputy Róisín Shortall asked the Minister for Finance the position regarding the future role of credit unions; if he is committed to supporting the strategic development of credit unions in order that they can extend the range of services offered so that the public can have a wider choice of financial services providers; and if he will make a statement on the matter. [32732/15]
View answerAs I have previously stated, credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. The Government recognises this and has put in place a number of measures to ensure that credit unions can continue to provide these vital services to their members and to ensure the stability of the sector into the future. These measures include:
- the establishment of the Commission on Credit Unions;
- the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012;
- the establishment of the Credit Union Restructuring Board, ReBo;
- the establishment of a stabilisation levy to support credit unions that are undercapitalised but are otherwise viable;
- the availability of €250 million for voluntary restructuring of credit unions facilitated by ReBo; and
- the availability of €250 million for resolution purposes.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
Credit union strategy is a matter for credit unions themselves and is specifically provided for in Section 17 of the Credit Union and Co-operation with Overseas Regulators Act 2012. The setting of strategy for a credit union is a function of the board of directors and Section 17 provides that this should be carried out in close co-operation with a credit union's management team. However, I am always open to considering new proposals in relation to credit unions, particularly those that would see the development of the credit union business model and an increase in income for the sector.
The Central Bank has informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in its feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months.
The safety of members' savings and the security of the credit union sector as a whole are priorities for this Government and I have, on a number of occasions, highlighted the Governments' recognition of the important role of credit unions as a volunteer co-operative movement.
229. Deputy Aengus Ó Snodaigh asked the Minister for Finance the total tax forgone relative to tax relief for medical expenses, excluding relief on private health insurance premiums, for each of the past five years; if he will provide a breakdown, with as much detail as is collected, in terms of the purpose of expenditure, for example, drugs, doctors fees, etc. [32740/15]
View answerI am informed by the Revenue Commissioners that the following table gives a breakdown of the estimated cost to the Exchequer of nursing homes expenses and other health and medical expenses. These figures do not include relief on private health insurance.
|
Year |
Nursing Homes €m |
Other Medical and Health Expenses €m |
All Health and Medical Expenses €m |
|
2009 |
23.1 |
122.4 |
145.5 |
|
2010 |
21 |
105.6 |
126.6 |
|
2011 |
23.1 |
108 |
131.1 |
|
2012 |
25.2 |
108.8 |
134 |
|
2013 |
25.2 |
125.9 |
151.1 |
It may also be of interest to the Deputy that a section of the Revenue Statistics webpage at www.revenue.ie/en/about/statistics/index.html is dedicated to data on tax expenditures including medical expenses. This information, for the years 2004 to 2013, is available at http://www.revenue.ie/en/about/statistics/costs-tax-expenditures.pdf.
230. Deputy Michael McCarthy asked the Minister for Finance in respect of the disabled drivers and disabled passengers (tax concessions) regulations 1994, if due consideration will be given to streamlining and modernising the scheme, particularly in reference to the six-point assessment for the primary medical certificate; and if he will make a statement on the matter. [32800/15]
View answerThe Drivers and Passengers with Disabilities (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, assistance with fuel costs, and an exemption from Motor Tax.
As the Deputy is aware, to qualify for the Scheme an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the assistance with fuel costs used by members of the Scheme, based on provisional figures the Scheme represented a cost of €48.6 million to the Exchequer in 2014, an increase of €5.1 million on the 2013 cost. This figure does not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I regularly receive correspondence from individuals with disabilities that do not meet the criteria but who believe they would benefit from the Scheme. While I have sympathy with those who do not qualify for Scheme, I cannot, given the scale and scope of the Scheme, expand the criteria further within the current context of constrained resources.
I can inform the Deputy that my officials have been undertaking a limited technical examination of Disabled Drivers and Disabled Passengers (Tax Concession) Regulations to address some of the tax provisions contained therein and it is now at an advanced stage. I expect to be in a position to address certain limitations of the Scheme through secondary legislation very shortly.
231. Deputy Pearse Doherty asked the Minister for Finance the return that would have been received on an investment of €27.2 billion in the National Treasury Management Agency, based on the average returns since September 2009. [32812/15]
View answerIn answering this question my officials and the National Treasury Management Agency have raised concerns in applying an average return to an amount of State investment funds, to which it is assumed the Deputy is referring. The difficulty in determining an appropriate average return to apply to State investments is created by the endogenous nature of any State investment. For example, the State decision to invest funds in the banking and payment systems has improved all other average returns, as well as overall economic growth.
There are a number of average returns that could be considered, including the average actual returns of Irish pension funds but they are not a reliable guide as without the State's support for the financial system these would have substantially fallen in value. Another option would be using the return on the discretionary element of the National Pension Reserve Fund (NPRF), however, this is not an accurate measure because of the necessity to invest the NPRF's liquid assets in the financial system. This meant that the average return on the NPRF discretionary portfolio was very different from 2009 onwards due to their being a greater holding of long term illiquid assets, as opposed to a better mix of liquid and long term assets.
It may be of interest to the Deputy to note that the Comptroller and Auditor General has included a chapter in his 2014 annual report, which has been published today, on the costs of Banking Stabilisation Measures.
Please see the link to the chapter concerned below.
http://www.audgen.gov.ie/documents/annualreports/2014/report/en/3%20cost%20of%20banking%20stabilisation%20measures%20as%20at%20end-2014.pdf
In the interim, if the Deputy would like to follow up with my private office I can arrange for officials from my Department and the Irish Strategic Investment Fund (ISIF) to provide more information on the difficulties of applying average investment returns to State holdings or for them to help clarify the issues that he raises.
232. Deputy Clare Daly asked the Minister for Finance if he will postpone the signing of the remaining sections of the commencement order of the Credit Union and Co-operation with Overseas Regulators Act 2012, as requested by the Irish League of Credit Unions, to allow further discussions on regulation CP88, which will undermine the ability of credit unions to operate effectively. [32836/15]
View answer245. Deputy Tom Fleming asked the Minister for Finance if he will intervene in the proposals by the Central Bank of Ireland for a savings limit of €100,000 per credit union member, as these limits will force the affected members to withdraw their savings and business from credit unions and place their funds on deposit with the main banks; and if he will make a statement on the matter. [33059/15]
View answerI propose to take Questions Nos. 232 and 245 together.
The Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President of Ireland on 19 December 2012. Following enactment, different parts of the 2012 Act have been commenced in tranches at different times. This approach was taken, as the Department is cognisant of the fact that credit unions needed time to implement all aspects of the 2012 Act and so has informed the timeline for implementation of the various measures on different dates.
I have not yet signed a commencement order for the remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012 which covers the following areas: reserves; liquidity; lending; investments; savings; borrowing; systems, controls and reporting arrangements; and services exempt from additional services requirements.
I have been informed by the Central Bank that the draft regulations set out in Consultation Paper 88 (CP88), will be introduced at end December 2015. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations. These sections of the 2012 Act, when commenced, will replace, amend or supplement existing sections of the 1997 Act.
The introduction of the new sections into the 1997 Act by the 2012 Act will, in effect, remove some of the requirements (including limits) that currently exist in certain sections and will provide regulation making powers to the Central Bank. The new sections will also contain a number of new requirements.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and myself, as Minister for Finance are working together for the safety of members' savings and the security of the credit union sector.
The regulations introduce a maximum individual member's savings limit of €100,000 which will ensure the protection of members' savings and continue to ensure that credit unions' funding is sufficiently diversified and is not dependent on a small number of members.
Following consultation with the credit union sector and representative bodies, the Central Bank amended the transitional arrangement for the savings regulations to provide for credit unions that have individual member savings in excess of €100,000 at the commencement of the regulations to apply to the Central Bank to retain these savings where they can demonstrate that it is appropriate and prudent for them to do so.
As outlined in the Central Bank's feedback statement on CP88, as part of the consultation process I proposed that in the interests of clarity and fairness, credit unions are provided with details of the process of applying for a retention of savings above the limit amount. I have been informed by the Registry of Credit Unions that all credit unions have been contacted giving further information on its application criteria for the retention of savings in excess of €100,000. The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to finalisation of the application process. When the application process is finalised, the Registry will provide an application form and explanatory notes in order to assist credit unions. It is anticipated that application forms will be available during December 2015. It is envisaged that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.
I welcome the steps that have been taken to provide clarity for credit unions on the criteria for the retention of savings over €100,000 and also welcome the proposed engagement with the representative bodies to seek their comments on the application process.
The Central Bank has also informed me that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed. It is envisaged that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to my Department on developments in this matter.
The Central Bank has further informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in the feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months.
The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to support a strengthened and growing credit union movement.
233. Deputy Finian McGrath asked the Minister for Finance if he will support the Union of Students of Ireland with the pre-budget submission to make adjacency rates and support postgraduate students as a priority; and if he will make a statement on the matter. [32930/15]
View answerI can confirm that a Pre-Budget Submission from the Union of Students in Ireland has been received.
To date my Department has received in excess of 400 Pre-Budget Submissions from a wide range of groups and individuals. These are being examined by the relevant officials in the context of Budget and Finance Bill preparation. However the Deputy will be aware that it is not the practice of the Minister for Finance to discuss the details of measures which may be under consideration as part of the Budget and Finance Bill process.
234. Deputy Finian McGrath asked the Minister for Finance if he will introduce an employer pay-related social insurance tax credit for new hires for micro-businesses with three to ten employees to support the small to medium enterprise sector in order to increase employment and generate a higher tax take; and if he will make a statement on the matter. [32931/15]
View answerThe Deputy may be aware that my Department recently undertook a public consultation on the role the tax system can play in encouraging entrepreneurship. This consultation forms part of a broader review aimed at assessing the effectiveness of the tax system in terms of starting up and expanding a new business, reviewing the effectiveness of current tax expenditures aimed at entrepreneurs, and examining whether new measures could be introduced to incentivise entrepreneurial activity. I will take this review, and the Deputy's suggestion with regard to a PRSI tax credit for new hires in micro-businesses, into account in the context of my preparations for the forthcoming Budget.
I would point out that employment is effected by a number of factors, including the economic environment. I also note that the 2013 Forfás report on Costs of Doing Business in Ireland 2012 noted that "Ireland has one of the lowest levels of employer's social welfare contributions. The Irish rate (9.7%) is significantly lower than the OECD average (14.8%) and the euro area average (18.8%)".[1] CSO data confirm that employer social security costs here are the fifth lowest across the EU27.[2]
[1] Page 24 of report "Cost of Doing Business in Ireland 2012" published by Forfás in April 2013
[2] Pages 35 and 36 of report "Business in Ireland 2011" published by CSO in November 2013
235. Deputy Pearse Doherty asked the Minister for Finance the gross national income for the past five years if redomiciled public limited companies had been excluded; the amount by which Ireland’s contribution to the European Union budget would have been reduced if these redomiciled public limited companies were excluded from the figures for these years. [32941/15]
View answerResearch conducted by inter alia the ESRI has highlighted the relatively recent phenomenon whereby a number of large multinational corporations have re-located their corporate headquarters to Ireland. Typically, this does not involve the shift of substantive activity to Ireland or liability for tax. However, it does mean that corporate income on worldwide activity is recorded as a credit (an income inflow) on the Irish current account, improving the balance. These such companies are regularly referred to as "re-domiciled PLCs".
Central Statistics Office (CSO) estimates of the net effect on primary income in the current account of the Irish Balance of Payments of these re-domiciled PLCs are set out in the following table. These are also the amounts that contribute to Irish net factor income in the National Accounts, and consequently Gross National Income (GNI).
The relative level of a Member State's GNI vis-a-vis that of other Member States is the most important determinant of its contribution towards the EU budget. The table also sets out the impact of these re-domiciled PLCs on Ireland's annual EU budget contributions, as estimated by my Department based upon the most recent data. The Deputy will be aware that the use of GNI as a contribution key favours Ireland, as unlike other countries this is significantly lower than our GDP.
It is important to stress that Irish GNP/GNI statistics are produced to meet required international standards and that these companies are correctly included in Ireland's National Accounts and Balance of Payments statistics under the standards set by the UN, the IMF, Eurostat and the ECB. Any estimates of GNP or GNI excluding these companies are not official statistics and have no legal status.
|
2010 |
2011 |
2012 |
2013 |
2014 |
|
|
Gross National Income at current market prices (€m) |
140,997 |
143,271 |
144,702 |
153,165 |
163,917 |
|
Net effect of re-domiciled plcs on current account (€m) |
5244 |
5815 |
7,338 |
6,940 |
7293 |
|
Gross National Income (excluding re-domiciled plc) |
135753 |
137456 |
137364 |
146225 |
156624 |
|
Estimated impact on EU Budget contributions (€m) |
45 |
45 |
60 |
60 |
55 |
Source: CSO except for the estimated impact on EU contributions, which is a Department of Finance estimate.
236. Deputy Maureen O'Sullivan asked the Minister for Finance if he considers that the implementation by restructured credit unions, in particular of section 44 of the Credit Union Act 1997, together with the inclusion of the credit unions in the dormant accounts regime would enhance the capacity of credit unions to contribute much more socially and economically to communities; whether, in the absence of its implementation, section 44, which is now almost 20 years on the Statute Book, will be best repealed, since to put legislation on the Statute Book that has little hope of being enforced degrades the rule of law and the legislators; and if he will make a statement on the matter. [32958/15]
View answerSection 44 of the Credit Union Act, 1997 provides that a credit union may establish a special fund to be used by the credit union for social, cultural or charitable purposes by a resolution passed by a majority of its members present and voting at a general meeting. I have been informed by the Central Bank that where individual credit unions intend to establish such a fund, the Central Bank would expect the credit union to take account of the need to ensure the protection of the funds of its members.
The remaining sections of the Credit Union and Co-operation with Overseas Regulators Act 2012, when commenced, will replace, amend or supplement existing sections of the 1997 Act. The introduction of the new sections into the 1997 Act by the 2012 Act will, in effect, remove some of the requirements (including limits) that currently exist and will provide regulation making powers to the Central Bank. While section 44 will not in itself be changed, the power to make regulations in relation to investments in projects of a public nature is specifically referenced in legislation and therefore such investments could be facilitated by future regulations, where appropriate, when there are specific proposals put forward by the credit union sector. While to date the Central Bank has not received any specific proposals regarding investment projects of a public nature, the Central Bank informs me that it is willing to consider such proposals including the type of regulations that would be required to facilitate such proposals.
In relation to dormant accounts, the Dormant Accounts Act, 2001 (as amended) provides for accounts in credit institutions to be transferred to the Dormant Accounts Fund when an account has been dormant for 15 years. Credit unions are currently not subject to the dormant accounts legislation. Accordingly, accounts in credit unions that have not been reclaimed by the owners for at least 15 years are not transferred to the Dormant Accounts Fund.
The Credit Union Act, 1997 (as amended) does not make reference to Dormant Accounts. Dormant accounts in credit unions, and the practices surrounding them, are governed by Rule 22 of the Standard Rules for Credit Unions published by the Irish League of Credit Unions.
237. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to the Exchequer of abolishing the universal social charge for all income earners earning less than €70,000 per year; and if he will make a statement on the matter. [32959/15]
View answer238. Deputy Richard Boyd Barrett asked the Minister for Finance the cost to the Exchequer of abolishing the universal social charge for income earners earning less than €35,000 per year; of reducing the charge by 50% for income earners earning between €35,000 and €70,000 per year; and if he will make a statement on the matter. [32961/15]
View answer281. Deputy Thomas P. Broughan asked the Minister for Finance the cost to the Exchequer of raising the universal social charge threshold to €13,500, €14,000 and €14,500; and if he will make a statement on the matter. [33304/15]
View answer282. Deputy Thomas P. Broughan asked the Minister for Finance the tax expenditure involved in cutting the universal social charge 7%, 1%, 1.5% and 2%; and if he will make a statement on the matter. [33305/15]
View answer299. Deputy Pearse Doherty asked the Minister for Finance the cost of reducing the universal social charge rate of 7% to 5%; and to 6%. [33450/15]
View answerI propose to take Questions Nos. 237, 238, 281, 282 and 299 together.
Regarding the question on the abolition of the Universal Social Charge (USC), I am informed by the Revenue Commissioners that the estimated first and full year costs of abolishing the USC for all income earners earning less than €70,000 per year are €1.86 billion and €2.52 billion respectively. This estimated cost assumes that the current USC structure remains in place for those income earners earning in excess of €70,000 per year.
Regarding the question of abolishing the USC for all income earners earning less than €35,000 per annum and reducing the USC rates by 50% on all income earners earning between €35,000 and €70,000, I am informed by the Revenue Commissioners that the estimated first and full year costs are in the order of €1.5 billion and €2.07 billion respectively.
In response to the question of raising the current USC threshold, I am informed by the Revenue Commissioners that the estimated costs for increasing the current USC threshold as outlined are as follows;
- From €12,012 to €13,500 would be in the order of €11.3 million in the first year and €15.7 million in a full year
- From €12,012 to €14,000 would be in the order of €15.7 million in the first year and €21.8 million in a full year
- From €12,012 to €14,500 would be in the order of €20.4 million in the first year and €28.3 million in a full year
In relation to the questions as to the cost of reducing the 7% rate of USC, I am advised by the Revenue Commissioners that a Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf . This Pre-Budget 2016 Ready Reckoner shows a wide range of information including a number of indicative changes to USC rates and thresholds. While the Ready Reckoner does not show all of the specific costing requested by the Deputies, other changes can be estimated broadly on a pro-rata (or straight-line) basis with those displayed in the Reckoner.
All figures provided above are estimates for 2016 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.
239. Deputy Richard Boyd Barrett asked the Minister for Finance the annual cost of research and development tax allowances or credits, in terms of corporate tax foregone, for each year from 2010 to the latest available figures; and if he will make a statement on the matter. [32962/15]
View answerI am advised by the Revenue Commissioners that a wide range of statistical information is now available on the Commissioners' statistics webpage at
www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy's question, information on the annual cost of research and development tax allowances can be found at
http://www.revenue.ie/en/about/statistics/costs-tax-expenditures.pdf.
The latest available figures are 2013 and the costs from 2010 are set out as follows:
|
Year |
R&D Credit Cost (€m) |
|
2010 |
224 |
|
2011 |
261 |
|
2012 |
282 |
|
2013 |
421 |
240. Deputy Joanna Tuffy asked the Minister for Finance his views on the decision of the Central Bank of Ireland to proceed with implementing its proposals for credit unions, including restrictions on the amount of lending credit unions can offer members for terms longer than ten years (details supplied); on concerns that such changes will restrict the future development of credit unions; and if he will make a statement on the matter. [32974/15]
View answerMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and myself, as Minister for Finance are working together for the safety of members' savings, the security credit unions and the sector overall.
The Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President of Ireland on 19 December 2012. Following enactment, specific sections of the 2012 Act have been commenced at different times. This approach was agreed with credit union stakeholders, as the Department is cognisant of the fact that credit unions needed time to implement all aspects of the 2012 Act and this has informed the timeline for implementation of the various measures on different dates.
I have been informed by the Central Bank that the draft regulations set out in Consultation Paper 88 (CP88), will be introduced at end December 2015. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations. These sections of the 2012 Act, when commenced, will replace, amend or supplement existing sections of the 1997 Act.
The remaining sections of the 2012 Act relate to: Reserves; Liquidity; Lending; Investments; Savings; Borrowing; Systems, Controls and Reporting Arrangements; and Services Exempt from Additional Service Requirements. The introduction of the new sections into the 1997 Act by the 2012 Act will, in effect, remove some of the requirements (including limits) that currently exist in certain sections and will provide regulation making powers to the Central Bank. The new sections will also contain a number of new requirements.
Under the regulations credit unions will continue to be allowed to lend up to 30% of their loan book over five years and up to 10% of their loan book over 10 years, subject to a maximum maturity of 25 years. In addition, credit unions can apply to the Central Bank for an extension to their longer term lending limits (up to 40% of their loan book over 5 years and up to 15% of their loan book over 10 years). Approval will be subject to conditions set by the Central Bank. As indicated in CP88, the Central Bank is reviewing the conditions that currently apply for credit unions to be approved to extend their longer term lending limits.
The regulations introduce a maximum individual member's savings limit of €100,000 which will ensure the protection of members' savings and continue to ensure that credit unions' funding is sufficiently diversified and is not dependent on a small number of members.
Following consultation with the credit union sector and representative bodies, the Central Bank amended the transitional arrangement for the savings regulations to provide for credit unions that have individual member savings in excess of €100,000 at the commencement of the regulations to apply to the Central Bank to retain these savings where they can demonstrate that it is appropriate and prudent for them to do so.
As outlined in the Central Bank's feedback statement on CP88, as part of the consultation process I proposed that in the interests of clarity and fairness, credit unions are provided with details of the process of applying for a retention of savings above the limit amount. I have been informed by the Registry of Credit Unions that all credit unions have been contacted and provided with additional information on its application criteria regarding the retention of savings in excess of €100,000. The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to finalisation of the application process. When the application process is finalised, the Registry of Credit Unions will provide an application form and an explanatory notes to assist credit unions in making an application. It is anticipated that application forms will be available during December 2015. It is envisaged that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.
I welcome the steps that have been taken to provide clarity for credit unions on the criteria for the retention of savings over €100,000 and also welcome the proposed engagement with the representative bodies to seek their comments on the application process.
The Central Bank has also informed me that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed. It is envisaged that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to my Department on developments in this matter.
The Central Bank has further informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in the feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months.
The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.
241. Deputy Michael McCarthy asked the Minister for Finance the number of unfinished housing estates approved for exemption from the local property tax; if he will provide clarification in relation to the charge in respect of an unfinished estate (details supplied) in County Cork. [32983/15]
View answer242. Deputy Michael McCarthy asked the Minister for Finance the reason a person (details supplied) in County Cork, who previously gained exemption from the Revenue Commissioners for the local property tax, has now received correspondence from the Revenue Commissioners demanding payment; and if he will make a statement on the matter. [32984/15]
View answerI propose to take Questions Nos. 241 and 242 together.
I am advised by Revenue that unfinished housing estates or specific parts of housing estates that remain unfinished must be included in 'prescribed lists' that are approved by the Minister for the Environment, Community and Local Government (Statutory Instrument 91 of 2013) in order to qualify for any exemption or waiver from Local Property Tax (LPT) or Household Charge (HHC).
The 'prescribed lists' can be viewed at www.environ.ie and any additions or alterations to their content are a matter for the Department of the Environment, Community and Local Government rather than for Revenue.
In regard to the specific case mentioned by the Deputy in Question 32984/15, Revenue has confirmed to me that while the property does hold an 'unfinished housing estate' exemption in respect of HHC, it does not hold any such relief in respect of LPT.
The Minister for the Environment, Community and Local Government applied more restrictive eligibility criteria for the unfinished housing estate exemption in respect of LPT than was the case for HHC. As a result, less than 5,000 properties (422 developments) qualified for the exemption from LPT while in excess of 43,000 properties (1,322 developments) qualified for the exemption from HHC.
