Written Answers Nos. 62 - 67
62. Deputy Eoghan Murphy asked the Minister for Finance if he will include full-time carers who live with an aged parent, but who own another property, in the dwelling house exemptions, as part of the capital acquisition tax changes (details supplied). [39722/15]
View answerCapital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance.
For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise. There is also an annual small gifts exemption of €3,000.
The details supplied describe a situation in which two siblings have inherited a house jointly from their mother. Based on the date of death of the disponer, this means that a tax-free threshold of €225,000 applies to each inheritor. If neither of them had previously received gifts or inheritances from a parent beyond the annual small gifts amount this means that, between them, they would be entitled to receive €450,000 tax-free before the application of CAT, on the basis that neither of them is eligible for the dwelling house exemption which applies in many cases where an individual inherits the property in which they live.
The dwelling house exemption allows an individual to inherit the property in which they live free of CAT, subject to certain conditions. One of these is that the individual has no beneficial interest in another residential property. The reason for this is that the exemption is designed to prevent hardship in cases where individuals are sharing a home and where one or more individuals are bequeathed the home in circumstances where they would otherwise have to sell the property in order to pay a CAT liability and be left without a home. This situation does not arise when an inheritor also owns other residential property or properties. I have no plans to modify the requirements of the dwelling house exemption to remove this condition. The core principle that the exemption is designed to prevent hardship in the case of home sharers is not satisfied where an individual owns other residential property.
Concern is raised in the details supplied regarding the ability to pay the tax. In this regard, an inheritor of land or buildings is entitled to pay any inheritance tax due by instalments over a period of five years, subject to interest. The Revenue Commissioners also have the discretion to allow payment over a longer period, delayed payment and/or the waiving of interest in cases of genuine hardship.
As part of Budget 2016, I raised the Group A threshold applying to gifts and inheritances from parents to their children from €225,000 to €280,000. This represents an increase of about 25%. I did this in recognition of the improving state of the national finances and of the concerns expressed to me by people making and receiving gifts and inheritances, particularly in a context of rising property prices. The scale of the increase may not be considered sufficient by some but it is a significant change and as much as could be afforded at this time. I have, however, indicated that I see the change to the Group A tax- free threshold in this year's Budget as the start of a process. Provided, among other factors, that our economic recovery continues, I will examine the scope for further improvements in the tax-free thresholds in the future.
63. Deputy Pearse Doherty asked the Minister for Finance the groups or persons he, or his officials, have met to discuss budget 2016 and the Finance Bill; and if he will make a statement on the matter. [39747/15]
View answerThe Deputy will appreciate that preparation for Budget 2016 and the Finance Bill is a complex matter and it would be impractical to provide a definitive list of every single such meeting that may have taken place.
However I can advise him that in advance of Budget 2016 I met, along with Minister Howlin, as I usually do, a number of representative organisations. These were IBEC, ICTU, the IFA, the ICMSA, the Construction Industry Federation and the Community and Voluntary Pillar. The Pillar, as the Deputy will be aware, comprises seventeen separate organisations.
In addition, I met with other organisations including:
- Drinks Industry Group of Ireland
- Retail Ireland
- American Chamber of Commerce
- Irish Thoroughbred Breeders Association
- Irish Road Hauliers Association
- Arts Council
- RTE Board
- National Newspapers of Ireland
- Governor Patrick Honohan, Central Bank of Ireland
- Conor O'Kelly, NTMA
- Niall Cody, Revenue Commissioners
- National Economic Dialogue
- IDA Ireland
I am advised that among the groups met by my officials relating to Budget 2016 and the Finance Bill were:
- Society of the Irish Motor Industry,
- Philip Morris International
- National Off licence Association
- Environmental Pillar
- Alcohol Action Ireland
- Argentine embassy
- Chilean Ambassador
- IBEC
- Irish Heart Foundation
- Irish Cancer Society
- Irish Charities Tax Reform group
- Screen Producers Ireland
- Linked Finance
- Irish Pro Share Association.
- Insurance Ireland
- Mr Tom Clinch
- KPMG
- PWC
- Deloitte
- Representatives of the Community and Voluntary Pillar
- American Chamber of Commerce
- Ingersoll Rand
- AIB
- Insurance Ireland
- Irish Debt Securities Organisation
- IFS Tax Working Group
My officials would also, on an ongoing basis and as a matter of course, have met with officials of the Revenue Commissioners, other Government Departments and public bodies.
In relation to the Knowledge Development Box which was announced in the Budget and is contained in the Finance Bill, the Deputy will be aware that my Department engaged in an extensive public consultation process this year. As part of this officials met with around 100 companies, met with a number of Government entities including the Department of Jobs Enterprise and Innovation and received over 40 written submissions. This included roundtable discussions hosted by KPMG, Galway Chamber of Commerce, the American Chamber of Commerce, IBEC (including the IBEC Pharma-Chem Group) and a conference hosted by the IRDG. As is the usual practice, these will be published on the Department's website in due course.
I would note also that in the run-up to Budget 2016 and the Finance Bill I have received to date more than 600 submissions from a wide variety of groups, representative organisations and individuals. All such submissions received are recorded and distributed as appropriate, both in my Department and in the Department of Public Expenditure and Reform, so that their content may be considered by the relevant officials in the context of Budget preparation.
64. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the progress in relation to the recruitment of clerical officers as part of the 2014 recruitment campaign into the Civil Service; the number of positions filled to date; the number of applicants on the list; the number of vacancies remaining to be filled from the list of applicants; and if he will make a statement on the matter. [39644/15]
View answerThe Public Appointments Service (PAS) is an independent, statutory body which provides professional recruitment and selection services to the civil and public service. The PAS advertised a recruitment competition for Clerical Positions in June 2014 which attracted over 28,000 applications. This competition is being held in order to create panels of qualified individuals from which sanctioned vacancies can be filled.
The first stage of the selection process comprised tests and assessments which candidates were invited to complete online. Those who reached the qualifying standard (11,500) were ranked for each of their selected regions.
To date candidates who had chosen regions for which vacancies have been notified to PAS and who were placed highest at stage 1, have been invited to stage 2 supervised tests (almost 6,000 individuals). Based on the results of these tests, candidates who reach the qualifying standard and who are placed highest may be invited to stage 3 which comprises an interview and, if their place is reached, they are considered for a vacancy. To date over 2,200 have been invited to interview and 1,350 candidates have been assigned from this competition.
Vacancies are being notified to PAS on a continual basis. Currently there are approximately 170 civil service vacancy requests being processed to fill positions in various locations throughout the country.
65. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform the value of capital investment projects and grants under way or approved for funding by his Department, by county, in tabular form; and if he will make a statement on the matter. [39661/15]
View answerIn response to the Deputy's question my Department has no capital investment, projects or grants underway or approved for funding.
66. Deputy Colm Keaveney asked the Minister for Public Expenditure and Reform when urgently needed funding will be made available by the Office of Public Works for the drainage of swallow holes and the cleaning of the channel from Grannagh to Blackrock in Peterswell in County Galway, funds which were applied for in August 2015 for critically necessary works which aim at alleviating and resolving the severe inconveniences and seasonal flooding being experienced locally; and if he will make a statement on the matter. [39773/15]
View answerGalway County Council has submitted an application for funding to the Office of Public Works (OPW) under the Minor Flood Mitigation and Coastal Protection Scheme for works at this location. The application is being assessed at present and the OPW will issue a response to the Council shortly.
67. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform if the Office of Public Works will exercise restraint on the height of flood walls in areas of beauty and amenity; and if he will make a statement on the matter. [39788/15]
View answerUnder its Major Capital Works Programme, the Office of Public Works (OPW) has over 30 major flood relief projects at various stages from initial design to works construction. These schemes are carried out with the OPW as the Contracting Authority or in some cases with the relevant Local Authority as the Contracting Authority with funding being provided by the OPW.
Flood Relief Schemes are designed to provide a standard level of protection against a fluvial flood with 1% Annual Exceedance Probability or a 0.5% Annual Exceedance Probability for tidal flood events, more commonly known as 100 and 200 year flood events respectively, and are only implemented when they are economically viable and environmentally acceptable. All schemes must provide this standard level of flood protection in order to be approved.
An Environmental Impact Statement (EIS) is completed for nearly all large flood relief schemes and the EIS must identify and assess the direct and indirect effects of the proposed works. Once a preferred scheme is determined on any given project, the proposals are brought before the public through a consultation process which gives the public an opportunity to comment and make submissions on the proposed works.
In order for a scheme to proceed it must be generally acceptable to the public in the area where it is proposed to be implemented.
Having regard to the foregoing, the height and appearance of flood defence walls are very important elements in the design of flood relief schemes and the OPW strives always to achieve the appropriate balance between the absolute requirement to have a scheme which delivers the standard of protection needed while also providing a scheme which is aesthetically pleasing and acceptable to the community it serves particularly in areas of beauty and amenity.
