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Wednesday, 27 Apr 2016

Written Answers Nos. 1-15

Invalidity Pension Appeals

Questions (1)

Michael Ring

Question:

1. Deputy Michael Ring asked the Tánaiste and Minister for Social Protection when a decision will issue on an invalidity pension application by a person (details supplied); and if she will make a statement on the matter. [8576/16]

View answer

Written answers

I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all of the available evidence, including that adduced at oral hearing, has decided to allow the appeal of the person concerned. 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.

Illness Benefit Appeals

Questions (2)

Michael Ring

Question:

2. Deputy Michael Ring asked the Tánaiste and Minister for Social Protection when an oral hearing will be scheduled to progress an appeal for illness benefit by a person (details supplied). [8577/16]

View answer

Written answers

Payment of Illness Benefit to the person concerned was disallowed by a Deciding Officer following an examination by a Medical Assessor of the Department who expressed the opinion that she was capable of work. An appeal was opened and in the context of that appeal her case was reviewed by a second Medical Assessor who also expressed the opinion that she was capable of work.

I am advised by the Social Welfare Appeals Office that, following receipt of the rounds of appeal from the person concerned, the relevant Departmental papers and comments of the Department were sought. These papers were received in the Social Welfare Appeals Office on 19 April 2016 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.

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.

Jobseeker's Allowance Payments

Questions (3)

Pat Deering

Question:

3. Deputy Pat Deering asked the Tánaiste and Minister for Social Protection why a person (details supplied) has not received a payment under the jobseeker's allowance scheme and when payment will be restored to the person. [8591/16]

View answer

Written answers

The Jobseekers Allowance payment of the person concerned was suspended because, after four visits, it could not be verified by a Social Welfare Inspector that she was living at the given address. A Supplementary Welfare Allowance payment was made to her on 22nd April 2016, pending the outcome of the investigation.

The Inspector will undertake to make contact with the client outside of the times she attends her clinic appointments. On completion of the investigation a report will issue to a Deciding Officer and a decision will issue to the client.

State Pensions Payments

Questions (4)

Seán Fleming

Question:

4. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection her views on encouraging persons in receipt of the State pension to have their payment made by electronic fund transfer to banks; and if she will make a statement on the matter. [8608/16]

View answer

Written answers

My department facilitates customer choice in the payment method for the state pension. Customers may choose to be paid by either direct payment to their bank account or through the post office under the department’s contract for cash service with An Post.

Customers may make their preference known at the time of application or subsequently. The department recognises that the majority of its customers are choosing on application to have their payments made direct to their bank accounts. The department has no active initiatives under way seeking to influence customer choice in the method of pension payments.

Jobseeker's Allowance Payments

Questions (5)

Seán Fleming

Question:

5. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection the status of correspondence she issued to persons who are in receipt of part-time jobseeker's allowance as they are working on a casual, day on-day off basis, including why she has informed them that payment will be made to the bank in future and that cheques will not be issued in the post; and if she will make a statement on the matter. [8609/16]

View answer

Written answers

The Government is committed to the maintenance of the Post Office network and to the development of a Standard Bank Account by An Post. Mindful of the current and ongoing discussions on Government formation any further development of policy will be a matter for the incoming Government.

The current position is that the department has a cohort of jobseeker customers who are classified as casual jobseekers. These are in-work customers who can claim a jobseekers payment for 2 to 3 days per week or who work week on/week-off. These customers are paid by cheque each week. Not all customers will be paid every week due to their changeable work patterns.

I want to emphasise that these customers have been paid by cheque due to the changing nature of their work/claiming patterns and the short turn-around time to issue payments. It is important to note that they are not paid via post offices under the department’s existing cash payments contract with An Post.

In line with the National Payments Plan, my department is seeking to reduce its usage of cheques as a payment method; this is not only a matter of decreasing the significant costs associated with cheques in the department and wider economy but also of moving to a more secure method of payment and enhancing customer convenience.

When paid by cheque, customers have the option of lodging them direct to their accounts or negotiating them at banks or the Post Office. The evidence available to the department is that the vast majority of the department’s customers paid by cheque choose to lodge them direct to their accounts.

The department has developed its payment capacity in respect of changing work and claiming patterns and is able to offer payments direct to accounts in financial institutions for casual Jobseeker customers thereby increasing customer convenience. This is in line with wider departmental policy where the focus is on ensuring that in-work customers are paid by the most convenient method possible.

Consequently the department has written to its casual Jobseeker customers asking them to provide their account details to enable direct payments to financial institutions.

I want to emphasise that the department does not issue these cheque payments to Post Offices; they are issued directly to the department’s customers. This process does not reduce the number of existing cash payments through Post Offices under the current contract between the department and An Post.

I want to reiterate that what the department is doing is moving customers from cheque payments to the much more secure, customer convenient and cost effective payment method of payment directly into accounts in financial institutions. This is entirely consistent with the National Payments Plan and in line with payment methods that now prevail across the economy. The department must consider the most efficient payment method for our customers who are in employment most of whom get their salary payment into bank accounts. To have weekly income (work + welfare) payable in two different ways is a highly inappropriate and costly way of dealing with people in employment. The department’s focus must be on our customers.

Customer choice will be maintained. Customers, if they wish, may continue to receive cheque payments in the medium term.

Tax Collection

Questions (6)

Jim Daly

Question:

6. Deputy Jim Daly asked the Minister for Finance the number of instances where the Revenue Commissioners have foregone the collection of interest on late payments of tax due made for whatever reason for each of the past five years; and if he will make a statement on the matter. [8541/16]

View answer

Written answers

I am advised by Revenue that interest is a statutory charge that is applicable where tax payments are received after the relevant due date.

Interest is collected in the course of late payment intervention programmes and is always a component of tax audit, of tax debt enforcement activity and of phased payment arrangements. It is designed to compensate the Exchequer for loss of revenue through late payment of tax, to encourage timely payments in future and to ensure equity for the majority of taxpayers who pay on time. For the years 2011 to 2015 Revenue collected interest amounts of €83m, €63m, €92m, €88m and €101m respectively under these programmes.

The current rate of interest  in respect of late payment of Income Tax, Corporation Tax, Capital Gains Tax, Capital Acquisition Tax, Local Property Tax and Stamp Duty liabilities is 8% per annum (0.0219% per day), while the rate in respect of all other taxes, for example PAYE/PRSI and VAT, is 10% per annum (0.0274% per day).

The only circumstance where tax is written out (forgone) is, where a business/taxpayer is adjudicated insolvent, has ceased to trade with no assets, where collection is uneconomic to pursue, or where collection would cause undue hardship. Where tax is written out in these circumstances, the associated interest automatically falls but could be reinstated along with the tax if the taxpayer's financial circumstances subsequently improved.

Statistics on the amount of interest forgone on foot of the primary charge to tax being written out are not maintained by Revenue. However, for the years 2011 to 2015, Revenue wrote out tax amounts of €321m (115,760 cases), €287m (124,641 cases), €263m (151,204 cases), €228m (150,824 cases) and €170m (159,144 cases) respectively. For each year, the vast majority of the write outs (approx. 94%) are lower value amounts of between €1 and €100 that were forgone on grounds of being 'uneconomic to pursue'.

Tax Reliefs Data

Questions (7)

Jim Daly

Question:

7. Deputy Jim Daly asked the Minister for Finance if he is satisfied with the situation that the Revenue Commissioners does not collate data of a particular type of tax relief (details supplied) which is costing the Exchequer revenue annually; if he is satisfied that the Revenue Commissioners is not in a position to advise his Department the amount the particular relief is costing the Exchequer annually; and if he will make a statement on the matter. [8544/16]

View answer

Written answers

I am informed by the Revenue Commissioners that they collect data on an ongoing basis on the estimated costs and the numbers who avail of the main tax reliefs allowable under various legislative provisions.

The Deputy's question relates to subsection 774(7)(d) of the Taxes Consolidation Act 1997. Under this provision, pension contributions that are not relieved from tax in the year in which they are paid, due to a restriction on the maximum percentage of an employee's yearly remuneration in respect of which relief can be granted, are carried forward to a subsequent tax year or years and treated as having been paid in the later year or years.  I set out full details of the operation of the annual restriction on pension contributions and the carry-forward procedure in my response to the Deputy's previous questions in this matter on 20 April last.

While details of amounts carried forward in the manner described are not separately identifiable, the cost of the relief for such amounts is captured in the overall figure for relief in respect of payments made, and treated as made, in each year.

Ireland Strategic Investment Fund Investments

Questions (8)

Jack Chambers

Question:

8. Deputy Jack Chambers asked the Minister for Finance how much of the announced Ireland Strategic Investment Fund's €500 million home building finance joint venture with an investment firm (details supplied) has been drawn down as at 31 March 2016; how many housing units will be constructed as a result of the drawdown to date; the average interest rate which applies to the loans drawn down to date; the interest rate that will apply to future drawdowns; when the funding will be drawn down; and if he will make a statement on the matter. [8588/16]

View answer

Written answers

In 2016, Activate has thus far provided site and working capital finance for the delivery of over 800 new homes.  Activate's pipeline for new home construction funding is strong. The consistent feedback from developers and builders is that this specialist form of residential development lending is needed to kick start the housing market.

In terms of drawdown profiles, as well as the value and pricing of specific loans, this is commercially sensitive information and not for disclosure.  However we can confirm that the interest rate for each project will reflect the level of risk taken on by Activate.  The Activate base lending rate is in the order of 10% approximately. As would be expected for projects of this nature, there is participation in equity upside if projects are successful so that the fund, and by extension taxpayers, share in any gains alongside the project promoter.

Tax Data

Questions (9)

Martin Heydon

Question:

9. Deputy Martin Heydon asked the Minister for Finance for a breakdown of receipts from 1% betting duty and from 15% commission tax in the past year following the enactment of the Betting Amendment Act 2015, which extended betting duty to online and mobile bookmakers; how these receipts compare to betting duty receipts for the previous three years; and if he will make a statement on the matter. [8639/16]

View answer

Written answers

I am informed by the Revenue Commissioners that the provisions of the Betting (Amendment) Act 2015 commenced 1st August 2015. Remote bookmakers pay 1% betting duty on bets entered into with persons in the State and remote betting intermediaries pay betting intermediary duty (15% of commission) in respect of commission charges levied on persons availing of betting intermediary facilities within the State.

The receipts and breakdown of receipts for 2012 to 2015 are outlined in the following table.  Figures for 2015 are provisional at this time. Returns are due on a quarterly basis, in the month following the quarter end.

 -

Traditional Betting

Remote Betting

Commissions

Total

 -

€m

€m

€m

€m

2012

27.1

-

-

27.1

2013

25.4

-

-

25.4

2014

26.2

-

-

26.2

2015 (Prov)

27.8

3.0

0.3

31.1

Departmental Expenditure

Questions (10)

Gerry Adams

Question:

10. Deputy Gerry Adams asked the Minister for Public Expenditure and Reform the total cost of the recent Seanad election, outlining in tabular form the costs incurred in respect of elections to the vocational panels and elections to the university panels; if total costs have not yet been compiled, the cost incurred to date and projected total cost once computed; and if he will make a statement on the matter. [8546/16]

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Written answers

It is estimated that the cost of the 2016 Seanad election could be around €3m, building in a contingency for the possibility of extra candidates, increased postal costs and the cost of venue hire for the count.  There has been no expenditure returned to date. The final certified accounts after an election would not normally be available until around 6 months after the holding of the election poll. For comparison purposes, the 2011 Seanad election cost of €2.688m, is set out in the following table in the format requested by the Deputy.

Costs for the Seanad election include staff costs and other disbursements such as venue hire, transport, delivery of election communication by candidates, election ballot papers and votes issued and returned to Returning Officers.

The Returning Officers prepare their own accounts and certify election expenditure in the prescribed format under the charging order to the Department of Finance.  Payments from the Central Fund in respect of election expenditure, including the reconciliation of such accounts, is the responsibility of the Minister for Finance.

Seanad Eireann 2011

 -

Postal Costs

Conduct of the Election

Election Communication by Candidates

 

 

Panel Members: Delivery of election ballot papers and delivery to Seanad RO (Deirdre Lane) (Panel members) of votes returned

11,466.00

45,223.35

National University Of Ireland:

 

 

Election Communication by candidates:

1,077,029.28

 

Election Ballot Papers Registered Post

518,151.00

 

Votes Addressed to Returning Officers

16,185.42

 

Total NUI:

1,611,365.70

104,724.00

Trinity College:

 

 

Election Communication by candidates:

488,749.92

 

Election Ballot Papers Registered Post

285,624.21

 

Votes Addressed to Returning Officers

6,783.48

 

Total Trinity

781,157.61

63,081.53

Office of Public Works: (printing of ballot papers and envelopes)

 

70,655.46

Grand Total (s)

2,403,989.31

283,684.34

 

2,687,673.65

Flood Risk Assessments

Questions (11)

Michael Healy-Rae

Question:

11. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the status of flooding in a housing estate (details supplied) in County Kerry; and if he will make a statement on the matter. [8584/16]

View answer

Written answers

Local flooding issues are in the first instance, matters for the relevant local authority to investigate and address. Local authorities are also responsible for maintaining flood alleviation works they undertake. The Office of Public Works operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial, are published on the OPW website, www.opw.ie. It is not available for repair of damaged infrastructure or for maintenance of existing flood defence or coastal protection assets. Any application received will be considered in accordance with the scheme eligibility criteria and having regard to the overall availability of resources for flood risk management. It is also open to Kerry County Council to carry out flood mitigation works using its own resources.

The core strategy for addressing the significant flood risks nationally is the Office of Public Works' (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. Tralee is one of 66 AFAs (Areas for Further Assessment) in the Shannon River Basin District and 300 locations nationwide that are being assessed under the Programme, the purpose of which is to implement the EU Floods Directive and national flood policy. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of flood risk management plans.

Under the Shannon CFRAM Study, draft predictive flood maps for Tralee have been produced and were the subject of a Public Consultation Day in Tralee on 24th March 2015. A further Public Consultation Day was held in Tralee on 1st October 2015 to present and discuss preliminary options to manage the significant flood risks.

The draft maps will be finalised in 2016 following the conclusion of the national statutory public consultation process on 23rd December, 2015. Following the finalisation of the flood mapping and the identification of preliminary flood risk management options, the final output from this important project will be integrated Flood Risk Management Plans containing specific measures that can address in a comprehensive and sustainable way the significant flood risks identified in the Shannon River Basin District. The Plans will include a prioritised list of measures, both structural and non-structural, that can address flood risk in an environmentally sustainable and cost effective manner. Further information on the Programme is available on www.cfram.ie.

The Government recently announced increased levels of investment in the area of flood relief as part of the overall Capital Investment Plan 2016-2021 and this investment programme will allow for consideration of measures arising from the Flood Risk Management Plans.

Office of Public Works Properties

Questions (12)

Seán Fleming

Question:

12. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform to arrange a meeting between senior officials in the Office of Public Works and a delegation from County Laois to discuss a property under the control of the Office of Public Works (details supplied); and if he will make a statement on the matter. [8610/16]

View answer

Written answers

The Office of Public Works would be happy to engage with the delegation concerned.

A meeting can be arranged by contacting the Office of Public Works’ regional office at Government Offices, Hebron Road, Kilkenny.

Public Sector Pensions Levy

Questions (13)

Patrick O'Donovan

Question:

13. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform to revert to this Deputy on a matter (details supplied); and if he will make a statement on the matter. [8630/16]

View answer

Written answers

On 16 June last year, I announced proposals to restore, on a phased basis, most of the Public Service Pension Reduction (PSPR) cuts which were applied to public service pensions under financial emergency legislation.  The PSPR applies at differentiated rates to the pensions of all retired public servants including members of An Garda Síochána.

These PSPR ameliorative proposals have since been legislated for under the Financial Emergency Measures in the Public Interest (FEMPI) 2015 Act, with changes occurring in three stages, on 1 January 2016, 1 January 2017 and 1 January 2018.

On 1 January 2016, increases in the annual pension thresholds before PSPR applies were activated. These exemption threshold increases remove PSPR entirely from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR receive a boost of €400 per year.

On 1 January 2017, additional PSPR amelioration, acting principally via further exemption threshold increases, will fully remove PSPR from another significant tranche of public service pensioners, while at the same time boosting those pensions which remain affected by PSPR by €500 per year.

On 1 January 2018, the third stage of PSPR amelioration will ensure that all PSPR-impacted pensions with values up to €34,132 will be fully restored, meaning that PSPR will no longer affect such pensions, while those pensions which continue to be impacted by PSPR will get a boost of, in most cases, €780 per year.

These PSPR changes under FEMPI 2015 deliver on my commitment to restore the pensions of retired public servants as early as economic and fiscal progress allowed, with an initial focus on those receiving relatively lower pensions. This pension restoration across the public service will cost an estimated €90 million on an annual basis and, when fully implemented, will ensure that only the top 20% higher value public service pensions will continue to be impacted by the PSPR.

Flood Risk Assessments

Questions (14)

Peter Burke

Question:

14. Deputy Peter Burke asked the Minister for Public Expenditure and Reform when it is planned to meet with stakeholders in the Athlone area in respect of flooding of the River Shannon; and if he will make a statement on the matter. [8542/16]

View answer

Written answers

The core strategy for addressing the significant flood risks nationally, in Athlone and in the Shannon River Basin District generally, is the Office of Public Works' (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. Athlone is one of 66 locations in the Shannon River Basin District and 300 locations nationwide that are being assessed under the Programme the purpose of which is to implement the EU Floods Directive and national flood policy. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of flood risk management plans. Under the Shannon CFRAM Study, draft predictive flood maps for Athlone have been produced and were the subject of a Public Consultation Day in Athlone on 17th February 2015. The draft maps will be finalised in 2016 following the conclusion of the national statutory public consultation process on 23rd December, 2015.

Two Public Consultation Days were held in Athlone on 17th December 2015 and 11th February 2016 to present and discuss preliminary options to manage the significant flood risks. Any further Public Consultation Days will be advertised locally and Stakeholders will be notified by the OPW’s consultants of any workshops on the Shannon CFRAM study.

Following the finalisation of the flood mapping and the identification of preliminary flood risk management options, the final output from this important project will be integrated Flood Risk Management Plans containing specific measures that can address in a comprehensive and sustainable way the significant flood risks identified in the Shannon River Basin District. The CFRAM Programme will be used to determine national priorities for future State investment in flood defences.

In addition, the Shannon Flood Risk State Agency Co-ordination Working Group which was established to enhance on-going co-operation across all of the State Agencies involved with the River Shannon is to hold an open day on 5 May, 2016 in Athlone to discuss its published Work Programme for 2016. Further details on the open day will be announced shortly.

Employment Rights

Questions (15)

Pearse Doherty

Question:

15. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation the total number of referrals made to the Workplace Relations Commission inspector in relation to non-compliance of section 14(1)(a) to (d) of the Organisation of Working Time Act 1997 concerning Sunday work and supplemental provisions in 2015, and to date in 2016; and if he will make a statement on the matter. [8535/16]

View answer

Written answers

With effect from 1st October 2015, the activities of the Labour Relations Commission, the National Employment Rights Authority, the Equality Tribunal and the first instance functions of the Employment Appeals Tribunal and the Labour Court were merged into a new Body of First Instance, known as the Workplace Relations Commission (WRC).

The WRC’s core services include the provision of early resolution, mediation, conciliation, facilitation and advisory services, adjudication on employment and equality complaints, the monitoring of employment conditions to ensure the compliance and enforcement of employment rights legislation, the provision of information, and the processing of employment agency and protection of young persons (employment) licences.

The WRC has informed me that the statistics maintained by the Inspection and Enforcement Division of the Workplace Relations Commission in relation to complaints received are not categorised by individual topic. It is the outcomes of the inspections of such complaints that are categorised and quantified.

Complaints in relation to issues under section 14 of the Organisation of Working Time Act are dealt with by the Adjudication Service. In circumstances where inspectors, in the course of the inspection of employment records, become aware of, or suspect, a possible failure to comply with the provisions of section 14(1)(a) to (d) of the Organisation of Working Time Act, 1997, the employer concerned is advised of their obligations. In addition, employees are advised of the avenues of redress open to them.

There were 940 claims submitted, in relation to the Organisation of Working Time Act, to the Rights Commissioner Service of the Labour Relations Commission during the period 1st January 2015 to 30th September 2015. These claims cover a variety of issues including annual leave, public holidays etc. Further detail on the particular sections of the Organisation of Working Time Act that these relate to is not available.

The complaints received by the WRC in relation to Organisation of Working Time for the period October to December 2015 is 563, while those for January to March 2016 total 606.

A deeper analysis of these shows a total of 62 Specific Complaints related to Sunday premium in the October-December 2015 period, and 59 Specific Complaints in the period January-March 2016. These figures include complaints presented to the WRC Inspection Services and the Adjudication Services.

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