Written Replies Nos. 201 to 226
201. Deputy Charlie McConalogue asked the Minister for Finance the waiting time for vehicle registration for cars in County Donegal and his plans to improve this; and if he will make a statement on the matter. [9793/16]
View answerI am advised by Revenue that an increase in the volume of applications to the National Car Testing Service for vehicle registrations resulted recently in some increase in waiting times. The average waiting time in Donegal for an appointment was 12 days in April. Additional capacity has been added by the service since the beginning of May. Revenue continues to monitor the level of service being provided.
202. Deputy Maurice Quinlivan asked the Minister for Finance further to his response at the Committee on Housing and Homelessness to this Deputy's question regarding flexibility in the fiscal rules for capital investment and subsequent reports regarding the new programme for Government, which provides for a cumulative additional €4 billion and given the favourable treatment of capital under the fiscal rules, the way the expenditure benchmark will be impacted by this proposed increase in capital expenditure and the scope for increases in capital expenditure to 2021 due to the flexibility vis-à-vis capital expenditure and the smoothing of investment over a number of years; the way in which this increase in capital expenditure will impact on the recent capital expenditure projections contained in the Stability Programme update for 2016, (details supplied); and the amount by which he expects the €3.8 billion capital allocation for housing will increase. [10041/16]
View answerTo avoid penalising spikes in government investment in Gross Fixed Capital Formation (GFCF) the European Commission allows this investment to be averaged over a four year period, meaning that an increase in GFCF will only use one quarter of the fiscal space that an equivalent increase in current expenditure would use in the first year. Basically, GFCF is smoothed over four years under the expenditure benchmark.
GFCF of general government consists of annual government investments, deducting disposals, in fixed assets retained for its own use. Fixed assets are tangible or intangible assets as defined by and in accordance with the European System of Accounts (ESA 2010). The annual general government GFCF outturn is produced by the CSO and is published as part of the Government Finance statistics.
In the Stability Programme Update submitted to the European Commission at the end of April, the Government adopted a revised medium-term budgetary objective (MTO) of -0.5% of GDP. This is expected to mean that Ireland will reach its MTO a year earlier, thereby increasing the level of fiscal space over the period to 2021 by c. €1.5 billion. This development, combined with the favourable treatment of GFCF, means that there is scope within the fiscal space to allow for cumulative additional Exchequer capital investment of €4 billion over the period, as noted in the programme for Government.
Ending the housing shortage and homelessness is a priority for this Government and the delivery of the committed €3.8 billion Social Housing Strategy, funded through the existing Capital Programme, will be accelerated. As noted in the programme for Government there will be a mid-term review of the Capital Programme in mid-2017. It is in this context that the allocation of additional Exchequer capital investment to priorities will be determined.
203. Deputy James Browne asked the Minister for Finance when he will issue a refund of value added tax, further to an application by a person (details supplied); and if he will make a statement on the matter. [10042/16]
View answerI am advised by Revenue that a refund issued to the person in question on 12 May 2016 in accordance with the VAT (Refund of Tax) (Flat Rate Farmers) Order, 2012. The payment will be in the person's nominated bank account within 3 to 5 working days.
Revenue has written to the person advising him of the amount refunded.
204. Deputy Michael Healy-Rae asked the Minister for Finance if his Department has undertaken a risk assessment on the potential effect of the Presidential election in the United States of America on the economy (details supplied); and if he will make a statement on the matter. [10071/16]
View answerThe Stability Programme Update (SPU), published last month and submitted to the European Commission and Council, sets out my Department's assessment of the economic outlook to 2021 together with a detailed assessment of risks. My Department expects the economy to grow by 4.9 per cent this year and by 3.9 per cent next year. Over the medium term, the economy can probably grow by around 3¼ per cent per annum on a sustainable basis.
Of course, as a small open economy, Ireland is disproportionately vulnerable to adverse developments in the international economy. This is especially true of the US which remains one of Ireland's major trading partners.
The SPU also notes that, while the outlook for the next 18 months is relatively benign, internationally the level of uncertainty is higher than at any stage since the height of the financial crisis. A more disruptive international environment could generate significant headwinds for the Irish economy. This underlines the need to maintain prudent fiscal policies, keep expenditure under control, remain competitive and it is why I have consistently reiterated my commitment to Ireland's corporate tax regime. Indeed various research reports by my Department and by the ESRI in recent years have shown the critical role of a competitive tax regime in attracting FDI and the key role played by the FDI sector in our overall economic story.
205. Deputy Fiona O'Loughlin asked the Minister for Finance if he is satisfied that the lending institutions are taking sufficient steps to engage with borrowers and their mediators, with particular reference to the requirements of small and medium-sized enterprises and homeowners whose mortgages may be in arrears for a variety of reasons and where the borrowers are eager to make payments to the maximum of their ability; and if he will make a statement on the matter. [10121/16]
View answerDealing with the issue of excessive indebtedness amongst SMEs and consumers is key issue for the new Government. The Programme for A Partnership Government contains a range of commitments on this issue. These commitments will ensure that progress continues to be made and that this issue will be addressed in an effective and fair manner.
In relation to SME loans, as part of on-going supervision, the Central Bank, working in conjunction with the European Central Bank (ECB) as part of the Single Supervisory Mechanism (SSM), continues to challenge the banks on their strategies, management, measurement and reporting of the resolution and restructuring of all non-performing loans (NPLs) including SME NPLs. Relevant actions taken by the Central Bank in recent years have been extensive and include, inter alia, capital assessment reviews, stress tests, distressed credit operation reviews, balance sheet assessment exercises, SME loan resolution bank specific targets, on-site inspections and on-going, intensive supervisory engagement with the banks regarding distressed debt.
In 2013 non-public institution-specific SME distressed loan resolution targets were set for a number of banks. The targets required the banks to develop strategies, at borrower level, to resolve their non-performing loans. The targets ended in Q1 2015 with lenders reporting that they satisfied the requirements set out. Progress has been made by the relevant institutions in resolving SME NPLs in recent years and NPL trends continue to move in a positive trajectory.
Recognising these developments, alongside changes in the supervision of the banks following the introduction of the SSM, the Central Bank's approach to commercial NPL resolution utilises a bank specific approach taking into consideration a number of factors including, inter alia, the institution's NPL resolution strategy and operational capability. The sustainable resolution of distressed SME loans remains a significant priority for the Central Bank and will therefore continue to be central to their supervisory focus throughout 2016 and beyond. Supervision will continue to be intrusive, supplemented by targeted inspections and enhanced monitoring of performance of the banks in delivery of supervisory objectives.
In relation to homeowners in financial difficulties, the Code of Conduct on Mortgage Arrears (CCMA) is a key part of the Central Bank's mortgage arrears framework. It is designed to provide appropriate and effective consumer protection measures and to ensure that borrowers are treated in a fair and transparent manner.
The CCMA is a statutory code and can be found at: http://www.centralbank.ie/regulation/processes/consumer-protection-code/Pages/codes-of-conduct.aspx.
The CCMA sets out requirements for all mortgage lenders dealing with borrowers in arrears or pre-arrears. It provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent way by their lender and that long term resolution is sought by lenders with each of their borrowers. It sets out a process, called the Mortgage Arrears Resolution Process (MARP). The MARP is a four-step process which lenders must follow:
Step 1: Communicate with the borrower
Step 2: Gather financial information
Step 3: Assess the borrower's circumstances
Step 4: Propose a resolution
The CCMA also requires lenders to have an appeals process in place to enable a borrower appeal a decision by a lender, including where the borrower is not willing to enter into an alternative repayment arrangement or where the lender declines to offer an alternative repayment arrangement. The appeals procedure must inform the borrower of his/her right to refer the matter to the Financial Services Ombudsman. The CCMA also provides that, at the borrower's request and with the borrower's written consent, the lender must liaise with a third party to act on his/her behalf in relation to his/her arrears situation.
On 18 December 2015, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 were published. These regulations come into effect and apply to regulated entities, except credit unions, from 1 July 2016. Until then, the Code of Conduct for Business Lending to Small and Medium Enterprises 2012 will continue to apply.
206. Deputy Sean Fleming asked the Minister for Finance the status of the payment of claims due by Setanta Insurance following the recent High Court ruling; and if he will make a statement on the matter. [10172/16]
View answerProgress on the Setanta Insurance issue has been awaiting the outcome of legal proceedings in the case of the Law Society of Ireland versus the Motor Insurers' Bureau of Ireland (MIBI).
On 4 September 2015, the High Court held that the MIBI is liable in respect of claims against the policy holders of Setanta.
This decision was subsequently appealed by the MIBI and the Court of Appeal upheld the High Court decision in March of this year.
The MIBI has recently been granted leave to appeal the Court of Appeal judgement to the Supreme Court.
I expect to be in a better position to inform the House further once the legal proceedings are concluded.
207. Deputy Danny Healy-Rae asked the Minister for Finance the amount of tax the Exchequer received from the carbon tax in 2015; and if he will make a statement on the matter. [10206/16]
View answerI am informed by the Revenue Commissioners that the yield from Carbon Tax in 2015 was €419.
208. Deputy Éamon Ó Cuív asked the Minister for Finance when he will complete the registration for tax of a voluntary company (details supplied); the reason for the delay; and if he will make a statement on the matter. [10246/16]
View answerI am advised by Revenue that the body concerned is registered for tax since 1991 and that registration is still valid. Revenue does not have any current application from the body concerned.
210. Deputy Pearse Doherty asked the Minister for Finance the annual amount of tax relief provided and claimed and the associated number of items donated, for each year between 2000 and 2015, inclusive, in tabular form with regard to section 1003 of the Taxes Consolidation Act 1997, referring to tax relief that is available in respect of the donation of important national heritage items to the Irish national collections. [10290/16]
View answerSection 1003 of the Taxes Consolidation Act 1997 provides for the payment of tax by means of the donation of a heritage item to an approved body.
The tax credit available to the donor of heritage items for all years up to and including 2008 was 100% of the market value of such items. For 2009 and subsequent years the tax credit available is an amount equal to 80% of the market value of such items.
The following table sets out the items donated each year under the scheme, the market value of the items and the annual tax credit available as a result of the donations. A breakdown of the relief claimed in each year is not available.
|
Year |
Donation |
Market Value |
Annual Tax Credit Provided |
|
A collection of 72 artworks |
£750,000 (€952,500) |
||
|
The Austin Clarke MS collection |
£150,000 (€190,500) |
||
|
The Whoseday Archive |
£550,000 (€698,500) |
||
|
A painting entitled The Wall of Light |
£170,000 (€215,900) |
||
|
The complete archival collection of Brian Friel |
£558,750 (€709,612) |
||
|
A painting entitled The Castellated Rhine |
£129,194 (€164,076) |
||
|
A collection of manuscripts relating to William Butler Yeats |
£300,000 (€381,000) |
||
|
2000 |
A collection of art works by Brian Maguire entitled Casa de Cultura Project |
£86,000 (€109,220) |
£2,693,944 (€3,421,308) |
|
A painting entitled ‘The Lute Player’ |
€724,406 |
||
|
Two paintings entitled ‘A Southern Landscape with Figures’ and ‘A Mediterranean Shipwreck’ |
€507,895 |
||
|
A Sean O’Casey Archive |
€399,522 |
||
|
Tain Tapestries |
€515,514 |
||
|
2001 |
A painting entitled ‘Christ Disputing with the Doctors’ |
€511,322 |
€2,658,659 |
|
The O’Neill Manuscript |
€169,552 |
||
|
A painting entitled “A Family” by Louis le Brocquy |
€2,786,885 |
||
|
W.B. Yeats Library |
€952,303 |
||
|
A painting entitled “St. Stephen’s Green, Closing Time” by Jack B. Yeats |
€220,000 |
||
|
2002 |
The Noel Sheridan Archive |
€120,000 |
€4,248,740 |
|
A painting entitled “Old Walls” by Jack B. Yeats |
€134,004 |
||
|
Joyce Papers (selected items) |
€2,984,877.40 |
||
|
A painting entitled “Nature Morte aux Pommes et aux Pots Breton” by Roderic O’Connor |
€535,144 |
||
|
A collection of nine art works |
€212,000 |
||
|
A painting entitled “Interior of a Café” by William John Leech |
€327,962.35 |
||
|
A collection of 37 art works |
€825,000 |
||
|
2003 |
A painting entitled “Mrs Healy Chadwick and her Daughter” by Walter Osborne |
€550,000 |
€5,568,988.70 |
|
The Joyce Papers (Part 2) Selected Items |
€2,796,000 |
||
|
A selection of 89 art works from the McClelland Collection |
€2,147,000 |
||
|
2004 |
A collection of works by Hughie O’Donoghue |
€208,000 |
€5,151,000 |
|
A painting entitled “Dorothy” by Sean Scully |
€181,292 |
||
|
3 paintings by Francis Bacon |
€2m |
||
|
A collection of artworks including paintings, tapestries and sculptures |
€1,037,200 |
||
|
A painting entitled “Bretonne” by Roderic O’Connor |
€542,424 |
||
|
A painting entitled “Wooded River Landscape” by George Barret |
€860,674 |
||
|
“Proclamation of the Irish Republic, 1916” |
€300,000 |
||
|
2005 |
Paintings by Jonathon Butts and James Beale |
€870,580 |
€5,792,170 |
|
“Finnegans Wake” by James Joyce |
€1,170,694.86 |
||
|
A painting entitled “Children in a Wood 1” by Louis le Brocquy |
€500,000 |
||
|
3 paintings by Francis Bacon |
€2m |
||
|
A painting entitled “Outskirts” by Phillip Guston |
€1.6m |
||
|
2006 |
A painting entitled “Black Relief over Yellow and Orange” by Elsworth Kelly |
€450,000 |
€5,720,694.86 |
|
A painting entitled “Portrait of George Fitzgerald and his sons George and Charles” by Johann Zoffany |
€780,000 |
||
|
4 paintings by Basil Blackshaw |
€300,000 |
||
|
The Benjamin Guinness Library at Farmleigh |
€3,487,420 |
||
|
2007 |
The Penrose Collection |
€705,900 |
€5,273,320 |
|
Illustrations for Hans Christian Anderson’s ‘Fairy Tales’ by Harry Clarke |
€322,356.36 |
||
|
A painting entitled “On the Bridge at Grez” by Sir John Lavery |
€1.6m |
||
|
A painting entitled “Cape Siren” by Philip Taaffe |
€219,851 |
||
|
Collection of 25 art works |
€2.050m |
||
|
2008 |
A painting entitled “Il Trovatore” by Giorgio de Chirico |
€500,000 |
€4,692,207.36 |
|
The Brian Friel Archive* |
€450,000 |
||
|
2009* |
Padraig Pearse letter * |
€206,762.50 |
€656762.50 |
|
2010 |
3 paintings by Hughie O’Donoghue |
€190,000 |
€152,000 |
|
2011 |
The Seamus Heaney Archive |
€1.75m |
€1,400,000 |
|
2012 |
The Memorabilia of Major John McBride and Mr. Seán McBride |
€152,350 |
€121,800 |
|
2013 |
The Headfort Mirrors Collection |
€375,000 |
€300,000 |
|
2014 |
2 Installations by Willie Doherty |
€160,000 |
€128,000 |
|
A painting entitled “Village Kermesse near Antwerp” by David Teniers |
€2,000,000 |
||
|
2015 |
The McDermott archive |
€200,000 |
€1,760,000 |
211. Deputy Gerry Adams asked the Minister for Finance if the Revenue office at the Millennium Centre in Dundalk, County Louth is to be closed to the public from 2 September 2016; the number of persons who have used this walk-in service in each of the past five years; how this change will impact on members of the public and on the staff of the Revenue Commissioners; and if he will make a statement on the matter. [10325/16]
View answerThe following table sets out the number of "walk in" callers to the Revenue Dundalk office and shows a 31% reduction in "walk in" callers to the office over the 5 year period:
|
2011 |
2012 |
2013 |
2014 |
2015 |
|
26,353 |
21,858 |
22,319 |
20,120 |
18,190 |
I am advised by Revenue that there are no plans to close the office to the public on 2 September next. I am aware that Revenue has made a significant investment and has made extensive improvements to its online service offerings, particularly for PAYE taxpayers. This makes it easier for taxpayers to do their business online. The provision of high quality self service, electronic and telephone service channels has impacted on customer need for walk-in type services and resulted in reduced demand from taxpayers, as evidenced by the figures provided. In that context, Revenue had advised me that all service channels and services are subject to ongoing close monitoring and review. In that context, Revenue has emphasised that taxpayers will continue to be provided with a flexible and responsive service commensurate with demand.
212. Deputy Thomas Pringle asked the Minister for Finance the cost of introducing an exemption from property tax for those on incomes below €14,000 per year; and if he will make a statement on the matter. [10352/16]
View answerI am advised that the 2012 report of the interdepartmental group (chaired by Dr Don Thornhill) on the design of a Local Property Tax (LPT) considered the issue of introducing an exemption or waiver for those below a certain income threshold. However, the report concluded that income-related waivers are an inefficient and costly method of targeting relief as they run the risk of creating inequities between property owners in broadly comparable financial situations. As noted in the group's report, there would also be substantial administrative difficulties in determining exactly which categories of property owners should qualify for an income based exemption or waiver.
Instead it was decided to implement a system of deferral of LPT for persons below a certain income threshold. There are number of criteria that must be met to qualify for such a deferral but in the main the income of the individual must be below €15,000 for a full deferral and below €25,000 for a partial deferral (€25,000 and €35,000 thresholds apply for couples). It should be noted that the deferral option attaches as a charge on the property until paid and also carries an annual interest charge of 4%. I am advised by the Revenue Commissioners that approximately 29,000 property owners availed of this deferral in respect of 2015 liabilities.
The thresholds applicable for the income deferral were recommended by the Thornhill interdepartmental group report based on analysis by the ESRI. These were considered appropriate, having regard to potential impacts on households and to the need for balance and equity in terms of the burden thereby imposed on those with higher (but still average or below average) incomes and the levels of social welfare payments.
I am further advised by the Revenue Commissioners that it is not possible at present to accurately estimate the cost of replacing the deferral with an exemption for all property owners with income below €14,000. This is due to the wide ranging nature of property owners with low incomes. Some will be in employment or self-employment (and paying Income Tax), others will be individuals or businesses with no net liability to tax (and therefore not filing detailed tax returns with Revenue) and there will be a significant cohort of individuals, about whom Revenue data are very limited, for example property owners in receipt of only social welfare payments. There may also be foreign owners of Irish property for which income data are not available. Because complete information on the incomes of certain groups of property owners is not available to Revenue, the cost of an exemption for owners with incomes below €14,000 cannot be estimated at present.
213. Deputy Thomas Pringle asked the Minister for Finance the cost of abolishing the 4% interest rate for those who choose to defer payment of the property tax under the current system; and if he will make a statement on the matter. [10353/16]
View answerI am advised by Revenue that there are currently in excess of 29,000 properties availing of the deferral option in respect of Local Property Tax (LPT), as provided for by Part 12 of the Finance (Local Property Tax) Act 2012 (as amended).
The deferrals, which attract an interest charge of 4% per annum, will for the majority of cases remain in place for the duration of the current valuation period, i.e. from 1 May 2013 to 31 October 2019. At the end of 2015 the cumulative deferred liabilities generated interest charges totalling more than €1.6 million. This indicates approximate annual interest charges of €0.6 million.
214. Deputy Michael McGrath asked the Minister for Finance the Central Bank's holding of non-Irish assets at the end of each of the years 2007 to 2015, inclusive; the acquisition and disposal of such assets in each of the years 2007 to 2014, inclusive; and if he will make a statement on the matter. [10354/16]
View answerThe Central Bank publishes details about its total investment asset holdings in its annual report, which is available on its website. However, the Bank has informed me that it does not publish a breakdown of assets by jurisdiction, nor specify the jurisdiction of assets which it acquired or disposed during the year.
215. Deputy Louise O'Reilly asked the Minister for Finance the savings to be made by withdrawing tax relief on private health insurance; and if he will make a statement on the matter. [10361/16]
View answer217. Deputy Richard Boyd Barrett asked the Minister for Finance the amount of income tax foregone in each of the years 2011 to 2016, to date, and the projected amount in 2017 through tax breaks on private health insurance; the income brackets of the beneficiaries of these tax breaks, by every €10,000 of earned income; and if he will make a statement on the matter. [10418/16]
View answerI propose to take Questions Nos. 215 and 217 together.
I am advised by the Revenue Commissioners that a Costs of Tax Expenditures Table is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/costs-expenditures.html. This table displays the estimated cost, in terms of revenue foregone, as well as the numbers who availed of the main tax credits and reliefs, including tax relief on medical insurance premiums. The table contains information from 2004 to 2013, the latest year for which full information is currently available. Provisional data indicate an estimated cost for tax relief on medical insurance premiums of €354 million and €325 million in 2014 and 2015 respectively. Forecasts for 2016 and 2017 are not currently available.
It should be noted that the medical insurance tax relief costs in the Tax Expenditures Table include, where relevant, the cost to the Exchequer of age-related relief at source, which was established by the Health Insurance (Miscellaneous Provisions) Act 2009. The cost of the age related tax credit for years 2009 to 2012 inclusive is offset by a stamp duty on health insurance policies.
The age related tax credit and stamp duty were part of an interim scheme of risk equalisation, which was introduced in order to provide direct support to community rating in the private health insurance market and is intended to be revenue neutral over its duration. This interim scheme expired on 31 December 2012 and was replaced from 1 January 2013 by a permanent risk equalisation scheme, provided for in the Health Insurance (Amendment) Act 2012. Risk equalisation credits are not given through the tax system effective from 1 January 2013.
Since 16 October 2013, tax relief for medical insurance premiums has been restricted to the first €1,000 per adult and the first €500 per child insured. Any portion of premium paid in excess of these ceilings no longer qualifies for tax relief. Prior to this, income tax relief for medical insurance premiums was provided at source, at the standard rate of income tax, on the entire premium amount regardless of cost. Therefore, the State was paying 20% of the cost of all private medical insurance premiums.
The cost of Income Tax relief in respect of medical insurance increased significantly in the years leading up to the introduction of the caps in Budget 2014, estimated at €404 million in 2011 and €448 million in 2012 (excluding the age related tax credit). Despite the increasing cost of the relief, the numbers insured were estimated to have reduced by approximately 150,000 over the same period, while at the same time the level of medical cover decreased on some policies. Against this background the increase in costs was unsustainable. If the relief had remained unchanged and the trend was to continue, it was estimated that the cost of the uncapped relief would have increased to approximately €1 billion per annum by 2020.
In my view, taking into account the increasing costs and reducing coverage outlined above, it was unfair and unsustainable to allow unrestricted tax relief on private medical insurance premiums, particularly at a time when the general population had contributed so much to repairing the public finances. The ceilings ensure a level of continuing support via the tax system for those who purchase medical insurance policies, while reducing Exchequer exposure to more expensive policies.
I am informed by the Revenue Commissioners that the returns filed with Revenue do not include information that would allow an income distribution of the beneficiaries of this tax relief to be provided. Accordingly, the specific information requested as to the income brackets of individuals claiming tax relief on private health insurance premiums is not available.
216. Deputy Louise O'Reilly asked the Minister for Finance the revenue that would be gained through the introduction of a sugary drinks tax; and if he will make a statement on the matter. [10362/16]
View answerThe introduction of a health levy on sugar-sweetened drinks has been included in the Programme for a Partnership Government. This levy will be one of a number of key public health interventions that this Government will make, as well as serving to provide additional revenue to the Exchequer.
While the details of the proposed levy, including structure, rate and application, have not been finalised, it is worth noting that similar proposals have been examined by my Department in the context of the 2015 and 2016 Budget process. They were initially considered through the Tax Strategy Group (TSG) General Excise Paper in September 2014 and again in September 2015. The 2014 and 2015 Tax Strategy Group papers are available on my Department's website.
These papers highlighted a number of challenges that need to be overcome when introducing such a tax. These included the potential impact on retailers and domestic soft drinks producers, the difficulties in applying an excise on a product which is not defined as a product under the EU general excise directive, the challenge in differentiating between sugar sweetened and artificially sweetened products and the challenge of collecting an excise on a product which has free movement between Member States and is not subject to the controls of a bonded warehouse like other excisable products such as alcohol, tobacco and mineral oils.
The tax strategy group paper for 2015 described a potential structure for a tax on sugar-sweetened drinks (SSD), which applied the tax to all drinks encompassed by CN code 2202 (includes soft drinks with added sugar and 'diet' products which contain artificial sweeteners). The outlined effects of various rates of SSD tax per hectolitre on CN Code 2202, the associated VAT-inclusive increase in the price of a 330ml can of soda, and associated VAT-inclusive yield on a no-change basis are provided in the following table.
|
€ |
€ |
€ |
€ |
€ |
€ |
€ |
€ |
|
|
Rate per hl |
€2.46 |
€4.93 |
€7.39 |
€9.85 |
€12.32 |
€24.64 |
€36.96 |
€49.27 |
|
Increase |
1c |
2c |
3c |
4c |
5c |
10c |
15c |
20c |
|
Yield |
€12.1m |
€24.3m |
€36.5m |
€48.7m |
€60.8m |
€121.7m |
€182.5m |
€243.4m |
218. Deputy Seán Haughey asked the Minister for Finance the cost of the rent-a-room relief scheme after the income limit was increased from €12,000 to €13,750; and if he will make a statement on the matter. [10440/16]
View answerThe current annual limit for Rent A Room relief, as provided for in Budget 2015, is €12,000.
I assume the Deputy is enquiring as to how much it would cost to increase this limit to €13,750. On that basis, I am advised by the Revenue Commissioners that it is tentatively estimated that the cost of such an increase would be approximately €0.4 million.
219. Deputy Brendan Griffin asked the Minister for Finance to review the rates of travel, subsistence and overnight accommodation allowable to workers who must work away from home within the State (details supplied); if the current situation provides an adequate allowance or if it results in a higher tax liability for employers. [10484/16]
View answerI am advised by the Revenue Commissioners that, by way of practice, employers may, without the deduction of tax, reimburse employees the expense of travel and subsistence wholly, exclusively and necessarily incurred in the performance of the duties of their employment. In that respect, there are two rate-related schemes by which such expenses may be reimbursed by the employer. The first scheme provides for the reimbursement of subsistence expenses up to the level of the prevailing Civil Service rates while the second scheme provides for the reimbursement of subsistence expenses on a schedule of rates and related conditions which do no more than reimburse for actual expenditure incurred. Revenue approval is required for any such schedule.
I am advised by the Department of Public Expenditure and Reform that a review of travel and subsistence rates applying in the Civil Service was carried out in 2015 in consultation with the civil service unions. Revised rates became effective in July 2015 and there are no plans for a further review. The subsistence allowance payable is not intended to meet the whole cost of subsistence when absent from home and headquarters and is not intended to be a source of emolument or profit.
220. Deputy Brendan Griffin asked the Minister for Finance the annual cost of a reduction in value added tax from 23% to 21%; and if he will make a statement on the matter. [10557/16]
View answerI am advised by the Revenue Commissioners that information on estimated costs of changes to all of the VAT rates can be found in the post-Budget 2016 Ready Reckoner on the Revenue Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html.
The Revenue Ready Reckoner estimates the full year cost of reducing the 23% VAT rate by 1% to be €318 million. Further decreases can be estimated on a straight line basis, thus the full year cost of reducing the standard rate from 23% to 21% is estimated to be €636 million.
221. Deputy Tony McLoughlin asked the Minister for Finance to examine the case of a person (details supplied); and if he will make a statement on the matter. [10561/16]
View answerAs the Deputy is aware, as Minister I have no direct function in the relationship between banks and their customers, nor any involvement in the day-to-day running of the banks. Notwithstanding the fact that the State is a shareholder in some of the institutions operating in the State, I must ensure that the banks are run on a commercial, cost effective and independent basis to ensure their value as an asset to the State. A Relationship Framework has been specified that defines the arm's length nature of the relationship between the Minister for Finance and the banks in which the State has a shareholding. These Frameworks were published on 30 March 2012 and the AIB Relationship Framework can be found at: http://finance.gov.ie/sites/default/files/Allied-Irish-Banks1.pdf.
It would therefore be inappropriate for me to comment or intervene in any particular case. I can only advise that full and forthright engagement with their financial services provider is the best solution for customers in the vast majority of cases. If an AIB customer is not satisfied with their financial service provider they can make a complaint to AIB Customer Support Centre, Bankcentre, Ballsbridge, Dublin 4, using the internal formal complaints procedure. Should this process come to a conclusion which they are not satisfied with, they may wish to refer the matter to the Financial Services Ombudsman (www.financialombudsman.ie) to have it independently investigated.
222. Deputy Patrick O'Donovan asked the Minister for Finance to provide assistance to a person (details supplied) to allow the payment of pay-related social insurance, PRSI, contributions for 2004 and 2009; and if he will make a statement on the matter. [10635/16]
View answerI am advised by Revenue that the details provided for the person concerned do not facilitate verification of the precise circumstances of this case. Revenue has advised me that arrangements will be made to contact the person concerned directly to clarify and hopefully resolve matters fully.
223. Deputy Michael McGrath asked the Minister for Finance to bring non-bank lenders within the terms of the Mortgage Arrears Resolution Targets; his plans to deal with very high long-term arrears in this sector; and if he will make a statement on the matter. [10640/16]
View answerThis Government is very committed to dealing with mortgage arrears and providing support for borrowers that find themselves in that situation. This commitment is evidenced by the range of commitments contained in the Programme for A Partnership Government which will provide renewed impetus for dealing with the issue particularly for those borrowers in longterm arrears.
The Central Bank is also working to deal with mortgage arrears. Relevant actions taken by the Central Bank since 2010 include capital assessment reviews, stress tests, distressed credit operation reviews, balance sheet assessment exercises and on-going, intensive supervisory engagement with the banks regarding distressed debt. The Central Bank's approach from 2011 has required banks to fix their operational capability and ensure that they execute appropriate strategies to address mortgage arrears. From March 2013 to December 2014, the Central Bank required the banks as a prudential measure to meet mortgage arrears targets to propose and conclude sustainable arrangements for the resolution residential mortgages in arrears (https://www.centralbank.ie/press-area/press-releases/documents/approach%20to%20mortage%20arrears%20resolution%20-.pdf). All of this was done in the context of the protections for borrowers under the consumer protection framework, including, in particular, the Code of Conduct on Mortgage Arrears.
The Central Bank, in its capacity of independent regulator of credit institutions has determined that relying on common quarterly solution mortgage arrears targets across all banks is no longer appropriate and announced this in April 2015. As a new approach, the Central Bank has written to each bank setting out new requirements that:
- concluded sustainable solutions are put in place for the vast majority of distressed borrowers;
- they meet the 'terms being met' target of 75 per cent of concluded solutions to the end of 2015 and beyond;
- they continue to comply with the Code of Conduct on Mortgage Arrears;
- where they initiate legal action that may result in loss of ownership for a borrower, they should be prepared to re-engage with the borrower and explore alternative solutions if the borrower re-engages; and
- they engage fully and appropriately in the process set out in the Personal Insolvency Act, 2012.
The banks have also been required to submit enhanced information to the Central Bank on the resolution of non-performing loans, including their strategies for delivering the outcomes outlined above. Further, the banks will be subject to enhanced and more granular monitoring of specific cohorts of distressed borrowers where progress has been slower.
The Central Bank, including in its role as part of the Single Supervisory Mechanism, remains focused on ensuring that the banks continue to improve issues identified in relation to their individual systems and procedures to ensure that they resolve arrears cases by implementing sustainable solutions for distressed borrowers in a fair manner.
As indicated, the Mortgage Arrears Resolution Targets (MART) were introduced as a prudential policy measure for credit institutions. As such, the MART process did not apply to non credit institutions such as retail credit firms. However, the same consumer protection framework including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears (CCMA) applies to retail credit firms as well as to credit institutions and like credit institutions retail credit firms are also required to fully comply with the full provisions of the CCMA when dealing with a mortgage in arrears or pre-arrears which is secured on a primary home.
224. Deputy Michael McGrath asked the Minister for Finance if he is aware of the difficulties caused to parents from changes to the single person child carer credit; if he will review the rules governing the one-parent family tax credit where the primary carer is not claiming the benefit of the credit in full; and if he will make a statement on the matter. [10641/16]
View answerAs the Deputy will be aware, the One-Parent Family Tax Credit (OPFTC) was replaced with a new Single Person Child Carer Credit (SPCCC) from 1 January 2014.
I recall that during the course of the debate on Report Stage of Finance Bill 2014, the Deputy tabled an amendment proposing to extend the transferability of all or part of the Single Person Child Carer Credit (SPCCC) to the non-principal carer parent where it has not been utilised in full by the principal carer.
As a result of the Deputy's proposed amendment, I agreed to review the SPCCC in the light of his proposal. The full text of this review was included in the Report on Taxation Expenditures, published on Budget day, which can be accessed online at:
http://budget.gov.ie/Budgets/2016/Documents/Tax_Expenditures_Report_pub.pdf.
The review undertaken comprised of:
- A review of the rationale for the replacement of the One-Parent Family Tax Credit with the Single Person Child Carer Credit.
- An outline of proposals relating to the transfer of any unused part of the SPCCC to the non-principal carer parent.
- Consideration of relevant legal issues.
- Consideration of relevant administrative, operational and data protection issues, and,
- Consideration of relevant budgetary implications.
This review identified that a transferable credit could only be effectively administered by Revenue with the full co-operation of the primary claimant, as it would require the primary claimant to file a tax return, provide information on the other parent (or secondary claimant) and consent to the release of personal information to the other parent (or secondary claimant).
I would point out that tax credits and bands are designed to be set against the taxable income of an individual in order to reduce his or her income tax liability. This does not necessarily mean that any given tax credit or rate band will be utilised in full, as the maximum relief available is that which would reduce the income tax liability to nil or the rate of tax chargeable to 20% in the case of standard rate bands. For example, an individual could be in receipt of the PAYE tax credit and have a level of income not sufficient to fully utilise this credit. As the SPCCC can currently be transferred in full to a qualifying secondary claimant in certain cases, I am satisfied that there is an appropriate level of transferability to secondary claimants, taking into account the various issues identified in the published review.
225. Deputy Michael McGrath asked the Minister for Finance the status of the work of the Credit Union Restructuring Board; and if he will make a statement on the matter. [10642/16]
View answerOn 1 January 2013 the Credit Union Restructuring Board ("ReBo") was established on a statutory basis. ReBo was established to facilitate and oversee the restructuring of credit unions on a voluntary, incentivised and time-bound basis. The objectives of the restructuring process are to underpin the stability and long-term viability of credit unions and the sector at large and to provide an opportunity for stronger credit unions to develop a more sustainable business model.
In October 2015 a detailed review of the work of ReBo was carried out under section 43 of the 2012 Act to examine whether or not ReBo had completed the performance of its functions. This review recommended that the final date for a credit union to receive a letter of offer from ReBo should be extended from 31 December 2015 to 31 March 2016. This extension provided additional time for credit unions considering entering the restructuring process to make an application in good time.
Section 43(2)(b) of the 2012 Act provides that a further review must be carried out within twelve months of the first review to establish whether or not ReBo has completed its work. In accordance with the 2012 Act, when I am satisfied that ReBo's work is done I will, by order, dissolve ReBo.
As at the end of April 2016, ReBo has engaged with 219 different credit unions in 117 merger projects. This represents in excess of 50% of total sector assets. 41 of these projects, involving 91 credit unions, have completed mergers with a further 9 projects involving 22 credit unions set to complete shortly. ReBo's focus for the rest of the year is to assist the remaining 106 credit unions in completing their mergers.
ReBo expects to have fully completed this work by the end of the year using circa €20 million of the €250 million set aside into the Credit Union Fund for the purposes of restructuring. Over the course of its lifetime ReBo expects the number of credit unions in Ireland to have consolidated from 403 to circa 260.
As stated previously, I am pleased that credit unions are engaging with ReBo as a business strategy to achieve the scale necessary to move to a more efficient and effective business model and as a means of strengthening the sector.
226. Deputy Michael McGrath asked the Minister for Finance the amount of cash held by the Ireland Strategic Investment Fund; his plans to deploy this cash; if he will use it to support the provision of social housing; and if he will make a statement on the matter. [10643/16]
View answerThe most recently published value of the ISIF's Discretionary Portfolio is €7.9 billion as at 31 December 2015. This includes cash and short term investments of €3.6 billion. To date, the Fund has committed €2.2 billion across a wide range of sectors in the Irish economy in line with ISIF's double bottom line mandate to invest on a commercial basis in a way that supports economic activity and employment in the Irish economy.
The Fund is engaging across a wide range of stakeholders, including private sector investors, with a view to identifying opportunities to invest in the area of social housing. Key factors which must be addressed to facilitate ISIF involvement in such projects include the commercial viability of proposals, Eurostat treatment of fund structures which receive the majority of their revenue from Government sources and the ability to create off-balance sheet vehicles, outside of PPPs, which is a requirement to make proposals work. While to date no investible projects or initiatives have emerged, the Fund is continuing to engage proactively with possible social housing investment structures and opportunities and will continue to do so in accordance with its statutory mandate to invest on a commercial basis in a way that supports wider economic additionally.
