Thursday, 14 Apr 2016

Written Answers Nos. 112-125

Departmental Contracts Data

Questions (112)

Catherine Murphy

Question:

112. Deputy Catherine Murphy asked the Minister for Finance the details of each statutory instrument signed; each contract entered into; each tender issued; each tender awarded and each State board appointment made by him or by an agency of his Department, from 1 January 2016 to date, in tabular form; and if he will make a statement on the matter. [6691/16]

Written answers

Minister for Finance

The Deputy may wish to note that the website http://www.irishstatutebook.ie, produced by the Office of the Attorney General, provides details of all promulgated Statutory Instruments.  The Statutory Instruments signed by the Minister for Finance since 1 January 2016 are set out in tabular form below.

Statutory Instrument Number	Statutory Instrument title
SI 44 of 2016	Irish Collective Asset-Management Vehicles Act 2015 (Section 145(2)) (Relevant jurisdictions) (Amendment) Regulations 2016
SI 45 of 2016	Irish Collective Asset-Management Vehicles Act 2015 (Section 145 (2)) (Relevant jurisdictions) (Amendment) Regulations 2016
SI 110 of 2016	Finance (Tax Appeals) Act 2015 (Commencement) Order 2016
SI 111 of 2016	Finance (Tax Appeals) Act 2015 (Establishment Day) Order 2016
SI 142 of 2016	European Union (Consumer Mortgage Credit Agreement) Regulations 2016
SI 143 of 2016	European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) 2016

 

The Deputy will be aware that public procurement is governed by EU and National rules.  The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. 

The 'Public Procurement Guidelines - Competitive Process' procedures provide that suppliers or services with a value of less than €5,000 can be purchased on the basis of verbal quotes from one or more competitive suppliers, and supplies or services between €5,000 and €25,000 in value can be awarded on the basis of responses from at least three suppliers or service providers.  Contracts with a value greater than €25,000 and below the EU threshold of €135,000 should normally be advertised as part of a formal tendering process, for example on the website http://www.etenders.gov.ie, while contracts above the EU threshold should also be advertised on the Official Journal of the EU.  It is Department of Finance policy to comply with all relevant public procurement legislation.

The Deputy may also wish to note that my Department's internal procurement procedures require that a 'Request for Quotation' is undertaken for contracts with a value below €25,000, while contracts with a value above €25,000 should be advertised through a 'Request for Tender' on the eTenders website.

'Requests for Quotation' and 'Requests for Tender' issued by my Department from 1 January 2016, and the name of the winning tenderer, are set out in the table below.

Tender process	Description	Name of winning tenderer
Request for Tender	RFT for the provision of an eDiscovery software solution for the Department of Finance	Tender in progress
Request for Quotation	Provision of training services for fire wardens and first aid	National Safety Centre
Request for Quotation	Assistant Principal Officer Development Programme	Institute of Public Administration
Request for Quotation	Clerical Officer Development Programme	Institute of Public Administration
Request for Quotation	Executive Officer Development Programme	Institute of Public Administration
Request for Quotation	Procurement of Media contacts database, press and social media distribution service	MediaHQ
Request for Quotation	Support for JD Edwards Financial Management System	Redfaire Ltd
Request for Quotation	Provision of Project Management Training (Diploma)	Institute of Project Management Ireland
Request for Quotation	Microsoft Project Training - 1 Day training course	New Horizons
Request for Quotation	Design and development of visual identity, collateral and associated graphic design services for the Annual Budget Process	Tender in progress

 

The Deputy will be aware that in November 2014, the Department of Public Expenditure and Reform published guidelines on Ministerial appointments to State Boards.  I can advise the Deputy that my Department and I are cognisant of the need to adhere to the Department of Public Expenditure and Reform guidelines.  Details of vacancies and appointments to State Boards can be accessed on the website http://www.stateappointments.ie.

Appointments to State Boards under the aegis of the Department since 1 January 2016 are as follows:

Name	Board	Appointment date	Position type	Basis of Appointment
Sharon Donnery	Central Bank Commission	01/03/2016	Commission member	Ex officio.  Deputy Governor Central Banking.  Section 18CA of the Central Bank Act 1942
Deborah Reidy	Financial Services Ombudsman Council	20/01/2016	Board member	Public Appointments Service process
Ken Murnaghan	Financial Services Ombudsman Council	20/01/2016	Board member	Public Appointments Service process
Valerie Bowens	Financial Services Ombudsman Council	20/01/2016	Board member	Public Appointments Service process
Seamus Coffey	Irish Fiscal Advisory Council	01/01/2016	Board member	Appointed by the Minister under Section 1(1) and (2) of the Schedule to the Fiscal Responsibility Act 2012
Michael G Tutty	Irish Fiscal Advisory Council	01/01/2016 (reappointment)	Board member	Appointed by the Minister under Section 1(1) and (2) of the Schedule to the Fiscal Responsibility Act 2012

 

The Deputy should note that the appointment of Ms. Donnery to the Central Bank Commission is not an appointment made by the Minister for Finance.  Ms. Donnery was appointed in an ex officio capacity in her role as Deputy Governor of the Central Bank.

Seized Property

Questions (113)

Noel Rock

Question:

113. Deputy Noel Rock asked the Minister for Finance the cost of smuggling to the Exchequer; the seizures by category in 2015 and in 2016 to date; and if he will make a statement on the matter. [6719/16]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the numbers of seizures, in 2015 and to the end of March this year, of various categories of products and goods, the numbers of items seized in each of those categories and the estimated values of those seized goods, are set out in the following table.

	2015			2016 (to 31st Mar)
	No. of Seizures	Quantity Seized	Value(€m)	No. of Seizures	Quantity Seized	Value(€m)
Cigarettes	5,927	68 million	34.4	1,272	13.3 million	6.99
Tobacco	1,227	2,364 kg	1.1	282	398 kg	0.2
Oil	47	215,132 litres	-	14	33,529 litres	-
Alcohol	938	45,842 litres	0.6	271	8,766 litres	0.13
Drugs	4,826	1377 kg	23.09	1,449	24.35 kg	1.9
Other*	1,282	-	-	203	-	-
Vehicles**	1,372	-	-	347	-	-

 *Refers to non-excisable commodities such as pornography, weapons and food.

**Vehicles seized for marked mineral oil offences, Vehicles Registration Tax offences and because of use in connection with alleged offences under customs or excise law.

In addition, there were 138,183 items detained in connection with suspected contravention of intellectual property rights in 2015. The estimated market value of the genuine equivalent of these items was in excess of €2.2m. The figures for 2016 (up to end March) are 12,768 items and €477,000 respectively.

Estimating the scale of any illegal activity, and the tax loss to which it gives rise, is necessarily difficult and it is not possible, therefore, to attribute a value to the overall losses associated with smuggling. The extent of the illegal trade in cigarettes is estimated, however, through annual surveys of smokers that are carried out for the Revenue Commissioners and for 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 provisional results of the 2015 survey indicate that the loss to the Exchequer in excise duty and VAT attributable to the illegal trade was in the order of €192 million.

The Revenue Commissioners also advise me that, while there is no reliable estimate of the extent of illegal activity in the fuel sector, they recognise that fuel fraud, including the laundering of markers from rebated fuel, is a significant threat to Exchequer revenues. Action against this illegal activity is, therefore, a priority for Revenue, which is implementing a comprehensive strategy to tackle the problem.

I am assured by Revenue that action against all forms of smuggling, as well as criminality in the fuel sector including fuel laundering, is, and will continue to be, a central element of their work. For my part, I have taken action through the Finance Acts to ensure that Revenue has all the necessary powers to combat these forms of criminal activity, and am satisfied that there is a robust legal framework in place that allows effective action to be taken against those responsible for such crimes.

Excise Duties Yield

Questions (114)

Noel Rock

Question:

114. Deputy Noel Rock asked the Minister for Finance to provide a breakdown of excise returns by category and by month for 2015; and if he will make a statement on the matter. [6720/16]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the breakdown of Excise receipts by category and by month for 2015 is as shown in the table below. Please note that the receipts shown for 2015 are provisional.

Alcohol	Tobacco	2015	Oils	Carbon	VRT	Other Excise	Total
€m	€m		€m	€m	€m	€m	€m
118.2	1.1	JAN	239.3	21.8	104.7	6.3	491.4
55.3	51.8	FEB	163.7	51.4	88.6	1.6	412.4
68.9	57.7	MAR	173.1	37.2	85.2	1.0	423.1
92.1	68.2	APR	178.6	43.8	63.5	6.7	452.9
84.9	96.6	MAY	156.7	30.3	43.3	1.1	412.9
92.8	72.1	JUN	198.7	38.4	27.7	1.7	431.4
98.9	81.2	JUL	185.7	28.3	92.0	8.5	494.6
106.0	103.4	AUG	178.3	32.9	54.4	1.2	476.2
91.6	70.4	SEP	181.2	31.2	32.7	5.6	412.7
103.0	109.8	OCT	185.0	32.2	27.2	15.1	472.3
132.9	93.1	NOV	171.6	36.2	19.5	1.4	454.7
92.0	277.0	DEC	107.0	35.4	10.7	2.2	524.3
1,136.7	1,082.3	TOTAL	2,118.9	419.0	649.6	52.3	5,458.8

 

The "Other Excise" category includes Licences and Betting.

Property Tax

Questions (115)

Josepha Madigan

Question:

115. Deputy Josepha Madigan asked the Minister for Finance further to his recommendation to freeze the evaluation of property tax until November 2019, his plans to implement the recommendations of the Thornhill report, with particular reference to recommendations Nos. 3, 4 and 9; his timeframe for implementing such recommendations; and if he will make a statement on the matter. [6761/16]

Written answers

Minister for Finance

I engaged Dr. Thornhill to consider the operation of the Local Property Tax, in particular, any impacts on LPT liabilities due to recent property price developments.  The review was informed by the outcomes of a public consultation initiated in March 2015 in response to which fifty-one written submissions were received.

In his report on his review of the Local Property Tax - which was published on Budget Day 2015 - Dr. Thornhill makes a number of recommendations. His central recommendation is for a revised system whereby a minimum level of LPT revenues in each local authority area would be determined by Government, ideally having regard to the apportionment between local authority areas of the historic yield. This in turn would allow for the estimation of LPT rates for each local authority area and the application of these by taxpayers and Revenue. Local authorities could adjust this rate upwards by a factor of up to 15%. This new system was recommended by Dr. Thornhill with a possible interim deferral of the next valuation date until November 2018 or November 2019. 

In my Budget 2016 statement, I announced that I would be proposing to Government that the revaluation date for the LPT be postponed from 2016 to 2019. This postponement means that home owners will not be faced with significant increases in their LPT in 2017 as a result of increased property values.  The postponement also gives sufficient time for the other recommendations in Dr Thornhill's report to be considered fully by the next Government.

The Finance (Local Property Tax) (Amendment) Act 2015 gives effect to the postponement of the revaluation date of residential property for LPT purposes, and also to two of the recommendations in Dr. Thornhill's report, involving LPT relief for properties affected by pyrite and relief for properties occupied by persons with disabilities (recommendations numbers 11 and 12 respectively).  

As I have indicated, issues relating to the implementation of other recommendations in the Report will be a matter for consideration by the next Government.

Tax Code

Questions (116)

Peadar Tóibín

Question:

116. Deputy Peadar Tóibín asked the Minister for Finance to ensure that, in the case of Irish small and medium-sized enterprises whose loans have been sold to a foreign vulture fund, it is the vulture fund which is required to withhold any withholding tax on interest payments made by the small and medium-sized enterprises and remit the withholding tax to the Revenue Commissioners, in contrast to the current position where the onus falls on the borrower to withhold the interest (details supplied); and if he will make a statement on the matter. [6871/16]

Written answers

Minister for Finance

I have been informed by the Revenue Commissioners that they will be issuing guidance on this matter very shortly.  The guidance will encourage Irish small and medium-sized enterprises who find themselves in this position to contact Revenue directly to avail of an exemption from operating withholding tax, where a bank has assigned or novated a loan to a non-banking entity.  In order for the SME to avail of this exemption an application will need to be made to Revenue and full facts regarding the loan must be disclosed in writing.

State Properties Data

Questions (117)

Peadar Tóibín

Question:

117. Deputy Peadar Tóibín asked the Minister for Finance the details of vacant State properties and land, including car parks not in use, owned by his Department or by bodies and agencies under the aegis of his Department by square footage, by location and by local authority in tabular form; and if he will make a statement on the matter. [6914/16]

Written answers

Minister for Finance

In response to the Deputy's query I would like to advise that as the Office of Public Works manages and maintains the State's property portfolio, the Minister with responsibility for the Office of Public Works is better placed to advise you on the details of properties managed by that Office. I have been advised that neither the Department of Finance nor any of the 18 bodies under the aegis of my Department have any vacant state properties or land which is not in use. 

See details regarding the 18 bodies under the aegis of The Department of Finance in tabular form below:

Body under aegis of Dept of Finance	Vacant State Properties	-	-	Land not in use (incl. car parks)	-	-
	Sq. foot	Location	Local authority	Sq. foot	Location	Local authority
Tax Appeals Commission	Nil	Nil	Nil	Nil	Nil	Nil
Office of the Comptroller and Auditor General	Nil	Nil	Nil	Nil	Nil	Nil
Central Bank of Ireland	Nil	Nil	Nil	Nil	Nil	Nil
Credit Review Office	Nil	Nil	Nil	Nil	Nil	Nil
Credit Union Advisory Committee	Nil	Nil	Nil	Nil	Nil	Nil
Credit Union Restructuring Board(ReBo)	Nil	Nil	Nil	Nil	Nil	Nil
Disabled Drivers Medical Board of Appeal	Nil	Nil	Nil	Nil	Nil	Nil
Financial Services Ombudsman Bureau	Nil	Nil	Nil	Nil	Nil	Nil
Financial Services Ombudsman Council	Nil	Nil	Nil	Nil	Nil	Nil
Investor Compensation Company Limited	Nil	Nil	Nil	Nil	Nil	Nil
Irish Bank Resolution Corporation	Nil	Nil	Nil	Nil	Nil	Nil
Irish Financial Services Appeals Tribunal	Nil	Nil	Nil	Nil	Nil	Nil
Irish Fiscal Advisory Council	Nil	Nil	Nil	Nil	Nil	Nil
National Asset Management Agency	Nil	Nil	Nil	Nil	Nil	Nil
National Treasury Management Agency	Nil	Nil	Nil	Nil	Nil	Nil
Office of the Revenue Commissioners	Nil	Nil	Nil	Nil	Nil	Nil
Social Finance Foundation	Nil	Nil	Nil	Nil	Nil	Nil
Strategic Banking Corporation of Ireland	Nil	Nil	Nil	Nil	Nil	Nil

VAT Exemptions

Questions (118)

Pearse Doherty

Question:

118. Deputy Pearse Doherty asked the Minister for Finance when the Revenue Commissioners will issue a guidance note on the effect of the changes to Schedule 1 for VAT exemptions in the Finance Bill where standard unaccredited health and safety training, such as manual handling, remains exempt from VAT; and if he will make a statement on the matter. [6931/16]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that Finance Act 2015 made changes to the wording of the VAT exemption for educational activities in the VAT Consolidation Act 2010 as amended to transpose the wording of the EU VAT Directive (Council Directive 2006/112/EC) with which Irish VAT legislation must comply.  The changed wording was designed to ensure that vocational training and retraining providers would continue to benefit from the education exemption.   

The Value-Added Tax Notes for Guidance on Finance Act 2015 were published on the Revenue website in December 2015. The notes for guidance clarify that vocational training or retraining, which would include standard health and safety training, such as, manual handling, is exempt from VAT where it is provided by recognised training providers including:

- A provider to which the Education and Training Board has outsourced the provision of vocational training or retraining;

- A provider to which Solas has outsourced the provision of vocational training or retraining;

- A provider of a course which is validated by Quality and Qualifications Ireland (QQI);

- A provider of training for initial or continuing access to a regulated profession.

These provisions should continue to provide exemption for standard health and safety training. The exemption also continues to apply to health and safety training given privately by an independent instructor.

If a service provider is unsure as to whether it satisfies the requirements for VAT exemption, the provider should contact their local Revenue District for guidance.

Tax Avoidance

Questions (119)

Jack Chambers

Question:

119. Deputy Jack Chambers asked the Minister for Finance the measures he will take to ensure all Irish registered companies comply with tax laws, given the release of the Panama papers; and if he will make a statement on the matter. [6946/16]

Written answers

Minister for Finance

The recent revelations uncovered by the International Consortium of Investigative Journalists regarding the so-called "Panama Papers" has caused widespread disquiet internationally.

I understand that the Revenue Commissioners are currently seeking access to all the information of relevance from an Irish tax perspective.  It would then be a matter for the Revenue Commissioners to decide whether Irish tax has been avoided and, if so, whether the arrangements should be challenged either under specific sections in the tax code or by using the general anti-avoidance legislation.  If it is found that the Irish tax base has been eroded, then action would be taken as appropriate.

I have written to the Chairman of the Revenue Commissioners to express my full support for their initiative in this regard.

International tax evasion is a worldwide problem which can only be tackled effectively when countries work together.  Ireland has been fully supportive of the OECD BEPS process and will continue to be. Ireland is also supporting work at EU level to increase fiscal transparency through initiatives like Country by Country Reporting. In this regard I am delighted that Ireland was one of the first countries to legislate for Country by Country reporting in the most recent Finance Act. 

Insurance Coverage

Questions (120)

Jackie Cahill

Question:

120. Deputy Jackie Cahill asked the Minister for Finance to immediately consult with the insurance industry, which is refusing to quote the owners of vehicles with new hackney licences, given that this is precluding them from setting up in business despite having been granted a licence to do so by the relevant authority; if this is affecting the creation of much needed employment; and if he will make a statement on the matter. [7055/16]

Written answers

Minister for Finance

The provision of insurance cover and the price at which it is offered 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 those risks. 

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, may interfere in the provision of insurance products. 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, which represents the insurance industry in Ireland, has informed me that if a hackney/taxi licence holder is refused a quotation, she/he should obtain three letters of refusal from three different insurance companies and then contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone [phone] quoting the Declined Cases Agreement. Under this Agreement, Insurance Ireland will nominate an insurer to provide a quotation.  

Tax Credits

Questions (121)

Willie Penrose

Question:

121. Deputy Willie Penrose asked the Minister for Finance to ensure that a person (details supplied) in County Westmeath is awarded the widowed person or surviving civil partner tax credit, to which the person has been entitled since 2004; if he will carry out a full review of the past 12 years in respect of this, given that this error would have been clearly in the knowledge of the authorities as the person was in receipt of a widow's, widower's or surviving civil partner's pension and was working; and if he will make a statement on the matter. [7078/16]

Written answers

Minister for Finance

I am advised by Revenue that, following recent contact from the person concerned during which her personal circumstances were brought to Revenue's attention, her tax credits for 2016 were updated and a review for the years 2012 - 2015 was carried out and appropriate refunds issued.

I am further advised by Revenue that it has since come to its attention that the person concerned made a repayment claim in 2013 and brought her personal circumstances to Revenue's attention at the time. Having regard to that fact, a review for the years 2009 - 2011 inclusive will now be undertaken and any refund due will be issued shortly.

The Deputy may be aware that Section 865 of the Taxes Consolidation Act 1997 imposes a 4 year time limit on repayment claims. Due to the time limit on the issue of repayments, and in the absence of a valid claim for earlier years, it is not possible to issue any repayment for years prior to 2009.

Tax Code

Questions (122)

Bernard Durkan

Question:

122. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which goods imported from China are subject to higher than average import tariffs, resulting in a doubling of the cost; if any improvements will take place in regard to such issues in the short to medium term; and if he will make a statement on the matter. [7174/16]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the decision on duties to be imposed on certain goods imported from China is determined by Member States at EU level.  The rates of duty generally are set out by the EU in the Common Customs Tariff.  While Ireland as one of 28 EU members has a participative role in the process for determining the rates we are not in a position to unilaterally set the rates.  The economic conditions which determine the rates will change from time to time and are reviewed by Member States on an ongoing basis.

Tax Code

Questions (123)

Written answers

Minister for Finance

Following the publication of the Marine Tax Review on Budget day, my Department is examining all of the proposals made in the report, in conjunction with officials from other relevant departments.

As noted in the report by Indecon, there are significant state aid obstacles that would need to be considered, and indeed overcome, in relation to some of the proposals before they could be considered for implementation. In this regard, there are particular issues pertaining to the potential extension of the current seafarer's allowance to fishermen.

Notwithstanding the above, officials are continuing to examine and analyse the proposals with a view towards having options available for consideration in the context of the next Budget and Finance Bill.

Insurance Coverage

Questions (124)

Michael Healy-Rae

Question:

124. Deputy Michael Healy-Rae asked the Minister for Finance his views on an insurance company (details supplied) not issuing quotations without an Eircode reference; and if he will make a statement on the matter. [7219/16]

Written answers

Minister for Finance

The provision of insurance cover and the price at which it is offered 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 those risks. 

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, may interfere in the provision of insurance products. 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, which represents the insurance industry in Ireland, has informed me that insurance companies make their own decisions on whether to offer cover and what terms to apply. With regard to the Eircode issue, I am advised that insurance companies have different criteria for underwriting purposes and they can decide what information they require before providing a quotation or cover.

Coastal Protection

Questions (125)

John Brady

Question:

125. Deputy John Brady asked the Minister for Public Expenditure and Reform the nature of coastal works planned at Murrough, Wicklow town; and if he has carried out any study to ascertain if these works will be sufficient. [6406/16]

Written answers

Minister of State at the Department of Public Expenditure and Reform

In March 2016 the Office of Public Works (OPW) approved funding of €450,000 to Wicklow County Council (WCC) following receipt of an application from WCC under the OPW's Minor Flood Mitigation Works and Coastal Protection Scheme for funding to carry out emergency coastal protection works at the Murrough in Wicklow town. WCC engaged RPS Consulting Engineers to investigate the problem and to recommend a solution to the erosion problem at this location. The works recommended and designed by RPS involve the replacement of the existing rock revetment structure and comprise the installation of new rock armour and specialised concrete sea defence units, all of which are standard and proven methods of coastal protection. The new revetment structure will also incorporate a properly designed terminal extension which will help to minimise the possibility of future erosion of the kind experienced last Winter.