Written Answers Nos. 89-110
89. Deputy Catherine Murphy asked the Tánaiste and Minister for Justice and Equality the number of members of An Garda Síochána who have been trained to conduct specialist child interviews as part of the joint protocol with the Health Service Executive, by region; and if she will make a statement on the matter. [11771/16]
View answerAs the Deputy will appreciate, the Garda Commissioner is responsible for the distribution and training of personnel among the Garda Regions, Divisions, and Districts, the various Garda national units and of course Garda Headquarters. Garda management keep this distribution under continuing review in the context of crime trends and policing priorities so as to ensure that the best possible use is made of these resources.
In relation to the specific information requested by the Deputy, I have sought that information from the Garda Commissioner and on receipt, I will write directly to the Deputy.
90. Deputy Catherine Murphy asked the Tánaiste and Minister for Justice and Equality the details of the Garda Síochána vehicle fleet including manufacturer, model and current distribution of vehicles by district and division; the arrangements governing its use including the upper acceptable kilometerage and age for use of vehicles; the number of vehicles which are in use and are nearing the upper limits; her plans to purchase new vehicles in the near future; and if she will make a statement on the matter. [11772/16]
View answerAs the Deputy will appreciate, decisions in relation to the provision and allocation of Garda vehicles are a matter for the Garda Commissioner in the light of her identified operational demands and the availability of resources and I, as Minister, have no direct role in the matter.
The detailed information requested by the Deputy is not readily available and its compilation would necessitate a disproportionate amount of staff time and effort. However, the following table provides an overview in relation to the Garda fleet as at 19 April 2016, which is the latest date for which such information is available. I am informed that the figures are liable to change from time to time as the allocation of Garda vehicles is continually monitored and reviewed, and vehicles are allocated between districts as required by operational circumstances.
I am advised that Garda vehicles are retired for a variety of reasons including, for example, where they are considered beyond economic repair as a result of accidents and on safety grounds or, in line with manufacturers' recommendations, when the odometer reading reaches 300,000 kilometres.
The Deputy will be aware that, in recent times, the Government has made considerable funding available to provide An Garda Síochána with additional high-powered vehicles, patrol cars (marked and unmarked) and motorcycles to ensure that Gardaí can be mobile, visible and responsive on the roads and in the community. The effect of this investment is reflected in the fact that approximately 57% of the current Garda fleet is under six years of age, as compared to some 30% in 2011.
In summary, over €34 million has been invested in the fleet since 2012, with over 720 new vehicles coming on stream since the start of 2015, and a further €46 million is being provided under the Government's Capital Plan 2016 - 2021.
Garda Fleet Allocation by Division - 19 April 2016
|
Division |
Cars |
Vans |
Motorcycles |
4x4s |
Other |
Total |
|
|
Marked |
Unmarked |
||||||
|
Cavan - Monaghan |
28 |
18 |
11 |
3 |
1 |
0 |
61 |
|
Clare |
18 |
15 |
9 |
2 |
0 |
0 |
44 |
|
Cork City |
31 |
58 |
20 |
7 |
2 |
6 |
124 |
|
Cork North |
21 |
12 |
10 |
2 |
1 |
0 |
46 |
|
Cork West |
26 |
10 |
10 |
1 |
1 |
0 |
48 |
|
DMR East |
24 |
16 |
9 |
3 |
2 |
2 |
56 |
|
DMR North |
35 |
53 |
33 |
0 |
2 |
5 |
128 |
|
DMR North Central |
18 |
34 |
10 |
4 |
3 |
3 |
72 |
|
DMR Office |
1 |
11 |
0 |
0 |
0 |
0 |
12 |
|
DMR South |
24 |
46 |
14 |
1 |
2 |
3 |
90 |
|
DMR South Central |
18 |
27 |
13 |
2 |
1 |
1 |
62 |
|
DMR Traffic |
10 |
7 |
3 |
24 |
2 |
1 |
47 |
|
DMR West |
31 |
61 |
20 |
3 |
2 |
2 |
119 |
|
Donegal |
39 |
13 |
12 |
3 |
0 |
0 |
67 |
|
Galway |
34 |
25 |
15 |
5 |
3 |
2 |
84 |
|
Central Vetting Unit |
0 |
1 |
0 |
0 |
0 |
0 |
1 |
|
Garda Headquarters |
2 |
38 |
17 |
6 |
1 |
1 |
65 |
|
Human Resources & People Development (inc. training) |
0 |
43 |
16 |
18 |
10 |
6 |
93 |
|
Kerry |
24 |
11 |
6 |
2 |
1 |
2 |
46 |
|
Kildare |
24 |
14 |
8 |
2 |
1 |
1 |
50 |
|
Kilkenny - Carlow (inc. Regional Resource) |
39 |
30 |
11 |
3 |
1 |
2 |
86 |
|
Laois-Offaly |
24 |
12 |
11 |
3 |
3 |
4 |
57 |
|
Liaison & Protection |
0 |
59 |
0 |
0 |
0 |
14 |
73 |
|
Limerick |
35 |
28 |
20 |
3 |
2 |
3 |
91 |
|
Louth |
24 |
16 |
8 |
1 |
2 |
3 |
54 |
|
Mayo |
25 |
13 |
10 |
1 |
3 |
1 |
53 |
|
Meath |
29 |
15 |
10 |
2 |
1 |
1 |
58 |
|
National Units |
0 |
393 |
49 |
4 |
36 |
26 |
508 |
|
Roscommon-Longford |
21 |
11 |
13 |
2 |
1 |
1 |
49 |
|
Sligo-Leitrim (inc. Regional Resource) |
21 |
14 |
11 |
2 |
1 |
0 |
49 |
|
Tipperary |
30 |
14 |
8 |
4 |
1 |
1 |
58 |
|
Waterford |
26 |
17 |
10 |
4 |
2 |
1 |
60 |
|
Westmeath |
21 |
16 |
11 |
2 |
2 |
1 |
53 |
|
Wexford |
26 |
15 |
8 |
2 |
1 |
0 |
52 |
|
Wicklow |
29 |
17 |
8 |
1 |
4 |
1 |
60 |
|
Total |
758 |
1,183 |
424 |
122 |
95 |
94 |
2,676 |
91. Deputy Catherine Murphy asked the Tánaiste and Minister for Justice and Equality the number of juvenile offenders, the programmes under her remit to combat juvenile crime and the number of Garda Síochána juvenile liaison officers, by county; and if she will make a statement on the matter. [11774/16]
View answerThe Annual Reports of the Committee appointed to monitor the effectiveness of the Diversion Programme provide an overview of youth crime in the particular year in question. As such, the reports include details of, inter alia, the number of incidents and individual children and young people referred to the Diversion Programme and the outcomes of such referrals. The reports also include details in relation to the resources deployed by the Garda Commissioner to support the operation of the Programme.
Arrangements in relation to the publication of the 2014 Report of the Monitoring Committee are currently being finalised. In its 2014 Report the Committee reports that 9,991 children and young people were referred to the Diversion Programme. This compares with 10,420 children and young people referred in 2013 and continues the downward trend in the number of children and young people referred to the Programme in recent years. The Committee also reports that in 2014, there were 123 Juvenile Liaison Officers (JLOs), including eight Sergeants. An Garda Síochána is compiling figures on the number of JLOs by county and this will be provided to the Deputy directly once completed.
As the Deputy may be aware, the Garda Diversion Programme operates in accordance with Part 4 of the Children Act 2001, as amended, and under the general superintendence and control of the Garda Commissioner. The aim of the Diversion Programme, through the network of JLOs, is to deal with young people who offend, by way of administering a formal or informal caution, thus diverting the young offender away from the Courts and minimising the likelihood of further offending. The Programme embraces, whenever possible, the principles of restorative justice and, at all times, pays the highest regard to the needs of victims. The Programme has proven to be highly successful in diverting children and young people away from crime by offering guidance and support to them and their families. This is evident from the continuing fall in the number of children and young people referred to the Programme in recent years.
The work of the JLOs is supported by my Department through the Irish Youth Justice Service (IYJS) which funds and oversees over 100 Garda Youth Diversion Projects (GYDPs) across the country. In this regard the Programme for Government includes a commitment to extend the network of Garda Youth Diversion Projects for young people promoting restorative justice approaches. Six of the GYDPs currently funded by my Department also incorporate Local Drugs Task Force (LDTF) projects. GYDPs are community based multi-agency crime prevention initiatives which primarily seek to divert young people who have become involved in criminal or anti-social behaviour. There are currently one hundred and three of these projects in place nationally with an additional seven due to come into full operation very shortly. The projects aim to bring about the conditions whereby the behavioural patterns of young people towards law and order can develop and mature through positive interventions and interaction with the project. The projects are particularly targeted at 12-17 year old “at risk” youths in communities where a specific need has been identified and where there is a risk of them remaining within the criminal justice system.
In addition, the work of the Probation Service is supported through a national network of community based Young Person Probation Projects (YPPs) which are also funded by my Department through the IYJS. Nationally, there are 16 YPPs developing and delivering services to young offenders in their communities. The management and monitoring of the YPP projects is undertaken directly by the Probation Service. These projects offer services to offenders who would otherwise not be in a position to avail of a mainstream service opportunity, thereby enhancing the work of the Probation Service in changing offending behaviour. The services provided by YPP projects to young offenders in local communities include training and education programmes, offender management programmes, residential accommodation, and drug and alcohol treatment programmes, the purpose of which is to address offending behaviours and reduce the likelihood of re-offending.
Just under €17 million has been allocated in 2016 to the IYJS through my Department to support the operation of all these community-based projects. The funding to support the GYDPs and several YPPs is part supported by the Government and the European Social Fund as part of the ESF Programme for Employability, Inclusion and Learning 2014-2020. In addition, some €2.8 million additional funding has been provided in 2016 to further support a number of Garda Síochána Youth Diversion and Probation Service projects under the Dormant Accounts Scheme.
92. Deputy Catherine Murphy asked the Tánaiste and Minister for Justice and Equality the number of members of An Garda Síochána who were transferred to a new division in each of the years 2011 to 2016 to date; the extent to which this occurred because of the Garda Commissioner's policing plan, changing demographics and crime trends; the difficulties in transferring gardaí between divisions; and if she will make a statement on the matter. [11775/16]
View answerAs the Deputy will appreciate, the Garda Commissioner is responsible for the distribution of resources, including personnel, among the various Garda Divisions and Districts and I, as Minister, have no direct role in the matter. Garda management keeps this distribution of resources under continual review.
I have been informed by the Garda Commissioner that the information requested is not readily available and An Garda Síochána is not in a position to provide the information as it would require a disproportionate amount of Garda time and resources to collate the data requested. I am further informed that in regard to the deployment of Garda personnel, a distribution model is used which takes into account all relevant factors including population, crime trends and the policing needs of each individual Division. It is the responsibility of the Divisional Officer to allocate personnel within his/her Division.
93. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Justice and Equality the annual cost of restoring all previous allowances to members of An Garda Síochána; and if she will make a statement on the matter. [11812/16]
View answerThe Deputy will be aware that, following a review of all allowances in the public service during 2011 and 2012, the Government decided on 18 September 2012 that rent allowance for all new public servants including Gardaí should be abolished. The rent allowance costs €4,600 per officer per annum (inclusive of Employer's PRSI).
The Garda Commissioner, who is the Accounting Officer for the Garda Vote, has informed me that the annual cost to the Garda Vote of reinstating the rent allowance for all recently attested Garda members would amount to €1.8 million. Obviously, that cost would increase by €4,600 for every Garda attested into the future. It is expected that a further 300 trainees will attest by the end of this year.
As a result of the review a number of other allowances which were dependent on the performance of duties of a specific nature were abolished for new beneficiaries. I have requested the cost of restoring these allowances from the Garda Commissioner and I will write directly to the Deputy on receipt of a reply.
94. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Justice and Equality the timescale for the Garda Síochána pay review, given that the chair of the review body has resigned; and if she anticipates increments being withheld from gardaí from July 2016 if no progress is made, owing to the expiry of the protections under the Public Service Stability Agreement 2013 to 2016. [11813/16]
View answerI am committed to the completion of the review of An Garda Síochána under the Haddington Road Agreement as soon as possible. With that aim in mind, my officials are consulting with the Garda representatives bodies in relation to how the review can be progressed in view of the recent resignation of the Chairperson.
The Garda Representative Association (GRA) and the Association of Garda Sergeants and Inspectors (AGSI) have rejected the Lansdowne Road Agreement. That is their right and I understand that there are a variety of reasons for their rejection of the Agreement. The Programme for Government restates the Government's commitment to the Lansdowne Road Agreement as the framework for industrial relations and pay determination within the public service until 2018. Within this framework, the Programme commits to the establishment of a Commission for Public Sector Pay to examine pay levels across the public service, including entry levels of pay, and to the gradual, negotiated repeal of the Financial Emergency Measures in the Public Interest (FEMPI) Acts.
As the Deputy is aware it is the case that the FEMPI Acts provide that any public servant who is not encompassed by a collective agreement, that is to say the Lansdowne Road Agreement, will forego the protections of that Agreement come July and be liable to a suspension of their incremental pay scale until 2018. I do not want to see this come to pass and my Department and I will continue to actively engage with the GRA and AGSI over the coming weeks with the objective of creating a pathway to their re-engagement with the Lansdowne Road Agreement. I see this process addressing, to the greatest extent possible, the main issues of concern to the Associations and their members, including the decision of the European Committee of Social Rights in EuroCop v. Ireland and I can assure the Deputy that I will be approaching these discussions positively with the ambition of reaching a solution that works for the Associations, their members, and the public at large.
95. Deputy Michael Fitzmaurice asked the Minister for Finance for the purpose of promoting rural public transport, to introduce tax incentives and legislate for the provision of a 100% capital tax allowance for the purchase of new buses; to remove road tax and vehicle registration tax on buses and value added tax on tyres for buses; and to introduce income tax incentives for the purchase of commuter bus passes. [11521/16]
View answerIn terms of VAT, rural public transport is promoted in a number of respects. The transport of passengers and their accompanying baggage is exempt from VAT in Ireland under an historic derogation, while in the majority of other EU Member States VAT is charged on public transport. In this respect, rural public transport services are exempt from VAT, where VAT is not charged on the transport. This also includes the hiring of a bus or coach with a driver.
While persons who are VAT exempt cannot recover any VAT incurred on goods and services incurred in relation to their business such as, fuel, tyres and mechanic charges, there is a special provision within the VAT code to allow a refund of VAT incurred on the purchase of touring coaches. Under VAT Refund Order SI. 266 of 2012, coach operators who are exempt from VAT may, subject to the conditions in the Order, be entitled to a refund of the VAT paid on the purchase of touring coaches that are no more than 2 years old and are within specified dimensions.
With regard to removing VAT from bus tyres, the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. It is not possible under EU VAT law to remove VAT from the supply of tyres.
Buses are assigned to VRT category C (commercial vehicles, buses and mini-buses with a seat capacity above 10). This category currently enjoys a greatly reduced rate of VRT, at a flat rate of €200. Category C vehicles are not subject to the carbon emissions-based graded scale of VRT, as applies to private cars. Private cars are subject to VRT rates ranging from 14% to 36% of the open market selling price of the vehicle. Therefore depending on the open market selling price of the car, and its carbon emissions grade, VRT can cost up to over 1/3 of the price of a new car. The current VRT rate applied to category C vehicles is therefore very significantly lower than that applied to private cars.
Motor tax rates applied to large public service vehicles are already subject to relatively favourable rates. The current rates are contained in the following table:
|
Seating Capacity |
Annual € |
|
9 - 20 |
154 |
|
21 - 40 |
202 |
|
41 - 60 |
403 |
|
61 or more |
403 |
The policy in this area is a matter for the Minister for Environment, Community and Local Government.
I have also introduced a diesel rebate scheme which offers a partial refund of excise, depending on the price of fuel, for qualifying road transport operators including passenger transport operators.
Most vehicles (excluding cars) qualify for wear and tear allowances as plant and machinery under section 284 TCA 1997 at the rate of 12.5% per annum. This allows 100% of the purchase cost to be written down over a period of 8 years.
As regards income tax incentives for the purchase of commuter bus passes, the Deputy may be aware of the Travel Pass (Taxsaver) scheme. The scheme operates on the basis that an employer pays for the Travel Pass on behalf of an employee at the start of the year and the payment is deducted from the employee's emoluments over the course of the year. The incentive operates on the basis that, although such a payment out of an employee's income should be made out of after-tax income, section 118B of the Taxes Consolidation Act 1997 provides that the remuneration foregone shall be exempt from tax. This has the effect of reducing the cost of the Travel Pass to the employee by the amount of tax that would have been paid on the equivalent amount of income at the employee's marginal rate (the highest rate of tax at which the employee is paying tax). In this way the employee, over the course of a year, only suffers the net cost of the Travel Pass, deducted on a weekly, fortnightly or monthly basis, with the total initial cost met by his or her employer.
96. Deputy Noel Rock asked the Minister for Finance to request the Revenue Commissioners to release stamp duty records (details supplied) from 1999 onwards, which are already compiled but unreleased, in electronic format. [11749/16]
View answerThe Property Price Register and the Commercial Lease Register are published on the website https://www.propertypriceregister.ie operated by the Property Service Regulatory Authority (PSRA).
I am advised by Revenue that in line with the provisions of the Stamp Duty Consolidation Act 1999, they supply data to the PSRA on a weekly basis, from the e-stamping system, to populate these registers. The e-stamping system is in operation since 30 December 2009.
There is currently no legal basis which would enable Revenue to supply to the PRSA any detailed data which is not captured by the e-stamping system without potentially infringing taxpayer confidentiality. I understand from Revenue that the data held prior to 2010 is also more limited.
97. Deputy Maureen O'Sullivan asked the Minister for Finance the nature and extent of the tax expenditures in favour of credit unions which his Department's tax strategy group recommended be continued in March 2011 (details supplied); if his Department has reviewed the matter since then; and if he will make a statement on the matter. [11192/16]
View answerI am advised by the Revenue Commissioners that credit unions that are registered, or deemed to be registered, under the Credit Union Act 1997 are exempt from Corporation Tax by virtue of section 219A of the Taxes Consolidation Act 1997.
Credit unions are not-for-profit member owned financial co-operatives funded primarily by member deposits and existing to attain the economic and social goals of their members. They cannot conduct business with the general public and must deal solely with their members who share a common bond such as where they live or work. Surplus moneys generated by business activities belong to the members and distribution of any surplus may take a number of forms including allocating to members in proportion to their transactions; the development of common services to benefit all members and the community; or the development of the business of the credit union.
The Government recognises the important role of credit unions whose not-for-profit mandate, community focus and dedication of their volunteers ensure that they continue to be a central part of our community.
I have no plans at this time to change the exemptions currently in place.
98. Deputy Eoghan Murphy asked the Minister for Finance the amount of excise duty and value added tax collected from the sale of petrol and diesel in 2015 excluding agriculture. [11200/16]
View answerI am advised by Revenue that the Mineral Oil Tax, Carbon Tax and VAT collected on petrol and auto diesel for the year 2015 is contained in the following table:
|
Mineral Oil Tax, Carbon Tax and VAT collected |
||||
|
Petrol |
Mineral Oil Tax |
Carbon |
VAT |
Total |
|
|
€m |
€m |
€m |
€m |
|
2015 |
767.9 |
62.3 |
364.1 |
1,194.3 |
|
Auto Diesel |
Mineral Oil Tax |
Carbon |
VAT |
Total |
|
|
€m |
€m |
€m |
€m |
|
2015 |
1,307.8 |
158.1 |
73.6 |
1,539.5 |
It should be noted that the VAT receipts are estimated, as the VAT returns do not require the yield from a particular activity or sub-sector of trade to be identified and the actual VAT yield for each category cannot therefore be determined.
A breakdown by sector of the users of petrol or diesel is not available, however it should be noted that the data for auto diesel does not include Marked Gas Oil (MGO or green diesel) that is primarily used in the agricultural sector.
99. Deputy Eoghan Murphy asked the Minister for Finance the amount of vehicle registration tax and value added tax collected from the sale of private motor vehicles in 2015. [11201/16]
View answerI am advised by Revenue that the VRT paid and estimated VAT in respect of both new and used private motor vehicles in 2015 is contained in the following table:
|
Vehicle Class |
|
2015 |
|
Cars |
Gross Registrations |
121,829 |
|
|
VRT € m |
389.2 |
|
|
VAT(Est) € m |
298.6 |
|
Car Derived Vans |
Gross Registrations |
2,030 |
|
|
VRT € m |
6.9 |
|
|
VAT(Est) € m |
3.6 |
|
Motor Cycles |
Gross Registrations |
2,925 |
|
|
VRT € m |
1.3 |
|
|
VAT(Est) € m |
4.0 |
|
Total Net Receipts € m |
703.6 |
|
|
VRT € m |
397.4 |
|
|
VAT(Est) € m |
306.2 |
It should be noted that the VAT receipts are estimated, as the VAT returns do not require the yield from a particular activity or sub-sector of trade to be identified and the actual VAT yield for each category cannot therefore be determined.
100. Deputy Pearse Doherty asked the Minister for Finance if families in County Donegal with homes affected by mica defective blocks are exempt from paying the property tax as indicated by the previous Government; and his plans to legislate to exempt them. [11269/16]
View answerThe legislation governing the administration of Local Property Tax (LPT) provides for a limited number of exemptions from LPT. There is no specific exemption for properties affected by Mica and there are no plans to introduce such an exemption. Contrary to the assertion in the Deputy's question, the previous Government did not indicate that such properties were exempt from LPT.
LPT operates on a self-assessment basis and it is a matter for the property owner in the first instance to calculate the tax due based on his or her assessment of the market value of the property. When making an assessment, issues such as the presence of Mica would be one of the factors that a property owner should take into account in valuing their property.
101. Deputy Pearse Doherty asked the Minister for Finance to clarify the commitment in the programme for Government not to sell more than 25% of any bank before the end of 2018 plus any small additional shareholding required by the underwriter to complete the sales process by clarifying the meaning for each of the State-backed banks; for example, if in the case of Permanent TSB it means a further 25% and in the case of Bank of Ireland if it means 25% of the existing shares or if it could mean the entire Government shareholding. [11275/16]
View answerThe programme for partnership Government document states that we will "not sell more than 25% of any bank before the end of 2018 (plus any small additional shareholding required by the under-writer to complete the sales process)." The provision is an acknowledgement that we intend to exit these investments in a measured and careful manner.
The provision refers to 25% of total shares outstanding in each of the banking institutions in which the State has a stake. In simple terms, we are committing to a maximum disposal limit of approximately one quarter of the State's shareholding in AIB (which is c. 99.8% of the total issued share capital), approximately one third of the State's shareholding in PTSB (which is c. 75% of total issued share capital) and the remainder of the State's shareholding in Bank of Ireland (which is c. 14% of total issued share capital) before the end of 2018. The reference to "any small additional shareholdings required" is to cover an IPO of AIB where the customary market practice in an equity capital markets transaction of that nature is to include an over-allotment option to the selling syndicate for post-IPO price stabilisation purposes.
To be clear, the provision in the Programme for Government is in no way a commitment to the sale of shares in that timeframe, only a clear signal that the State should exit these investments in a controlled manner over time, with the primary objective of recovering the maximum amount of money for the Irish taxpayer.
102. Deputy Michael Healy-Rae asked the Minister for Finance the options available to private bus operators (details supplied); and if he will make a statement on the matter. [11336/16]
View answerThe transport of passengers and their accompanying baggage is exempt from VAT in Ireland under paragraph 14(3) of Schedule 1 to the VAT Consolidation Act 2010. Therefore, the services of private bus transport operators are exempt from VAT. Persons whose services are exempt from VAT are not required to register for VAT or charge VAT on the supply of their services. This means they cannot recover VAT in relation to their business costs including those referred to by the Deputy such as the purchase of fuel, lubricants and tyres.
While private bus operators whose services are VAT exempt cannot recover VAT incurred on the purchase of goods and services, I would point out that there is a special provision to allow a refund of VAT incurred on the purchase of touring coaches. Under VAT Refund Order S.I. 266 of 2012, coach operators who are exempt from VAT may, subject to the conditions of the order, be entitled to a refund of the VAT paid on touring coaches that are no more than 2 years old and are within specified dimensions.
The Deputy has pointed out the different VAT treatment of private bus operators between Ireland and the UK. The VAT rating of goods and services is subject to the requirements of EU VAT law, primarily Council Directive 2006/112/EC. VAT law in Ireland and the UK must comply with the EU VAT Directive. As passenger transport was exempt in Ireland on 1 January 1978, it is possible under the VAT Directive to continue to apply that exemption. As passenger transport services were charged at the zero rate in the UK on 1 January 1991, the UK is entitled to continue to apply a zero rate to passenger transport services. It is not possible under EU law for Ireland to apply a zero rate to the services of private bus operators as we did not apply a zero rate to them in 1991. Further to this, the rate of excise duty applied to diesel is 48c per litre, this compares favourably against the rate of excise in Northern Ireland which is 74c (as of 12 May 2016). Revenue conducted a cross border price survey on 12 May and a litre of diesel was 22c more expensive in Northern Ireland. I have also introduced a diesel rebate scheme which offers a partial refund of excise, depending on the price of fuel, for qualifying road transport operators including passenger transport operators.
Information furnished on statutory VAT returns does not require details of the VAT yield from particular sectors to be identified. It is therefore not possible to give an estimate of the loss to the exchequer of VAT if the private bus operators had an entitlement to reclaim the VAT incurred on their business costs. However, a flat rate of €200 Vehicle Registration Tax applies to Category C vehicles which includes minibuses and large buses. The motor tax rates applied to large public service vehicles are subject to relatively favourable rates. The current rates are contained in the following table:
|
Seating Capacity |
Annual € |
|
9 - 20 |
154 |
|
21 - 40 |
202 |
|
41 - 60 |
403 |
|
61 or more |
403 |
103. Deputy John Brassil asked the Minister for Finance to extend the qualifying rules for the disabled drivers and disabled passengers scheme to accommodate people who suffer severe stroke for a period of up to two years, after a stroke has occurred; and if he will make a statement on the matter. [11354/16]
View answerThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme, an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations. The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Regulations. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To obtain a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the repayment of excise on fuel used by members of the Scheme, the Scheme represented a cost of €50.3 million to the Exchequer in 2015, an increase from €48.6 million in 2014. These figures do not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I understand that there are sympathetic cases of individuals, such as those who have suffered a stroke, that do not come within the remit of the Scheme. Furthermore I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. Unfortunately, the current context is still one of constrained resources. In the still challenging fiscal environment and given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
104. Deputy Patrick O'Donovan asked the Minister for Finance if the Revenue Commissioners provide an exemption to persons letting land for farming purposes when they have leased long-term for the planting of Christmas trees, for solar panels and for permanent afforestation; and if he will make a statement on the matter. [11397/16]
View answerSection 664 of the Taxes Consolidation Act 1997 (TCA) provides for a tax exemption in respect of income received by persons from certain long term leases of farm land. The purpose of the relief is to encourage more landowners to lease out land on a long term basis to active farmers thereby encouraging more productive use of the land. The farm land must be used by the lessee for the purpose of carrying on a trade of farming or market gardening (the occupation of land as a nursery or garden for the purpose of growing produce for sale.)
Land in use for afforestation is not market garden land and is therefore not considered to be occupied for the purpose of husbandry. Similarly, land in use for the planting and harvesting of Christmas trees is treated as woodland for tax purposes as opposed to farm land. Therefore the exemption will not be available in respect of long term leases of land for afforestation or Christmas tree production. However, under Section 232 of the TCA, a separate tax exemption is available in respect of profits or gains arising from the occupation of woodlands which are managed on a commercial basis.
In relation to land leased to a company for solar energy generation, in general, such a company would not be considered to be carrying on a trade of farming and therefore would not be a qualifying lessee for the purpose of the exemption. A recent eBrief on this issue published by the Revenue Commissioners provides more information, and can be accessed at their website at http://www.revenue.ie/en/practitioner/ebrief/2016/no-532016.html.
105. Deputy Pearse Doherty asked the Minister for Finance the advisory opinions sought from the European Central Bank because domestic legislation affected the workings of the Central Bank; the length of time from the request until the opinion was received, by case; the legislative changes he made as a result; and if he will make a statement on the matter. [11438/16]
View answerThe following table sets out Central Bank of Ireland-related legislation on which advisory opinions have been sought from the European Central Bank, the date the opinions were sought, and the date the opinions were provided.
Consultation of the European Central Bank is a requirement of the Treaty on the Functioning of the European Union where the draft law relates to the Central Bank of Ireland and contains rules applicable to financial institutions, insofar as they materially influence the stability of financial institutions and markets.
The Treaty is silent on any obligation by national authorities to make legislative changes reflecting ECB opinions. However, invariably any ECB opinion would become part of the deliberative process as the draft legislation is presented and progressed through the Houses of the Oireachtas. Ultimately it is a matter for the Oireachtas to decide whether or not to make any legislative changes to the published draft law.
It should be noted that the ECB has, on occasion, provided opinions on legislation without a request from the Government, including independently or on request of a body other than the Minister/Department. Opinions have also been sought and provided in relation to matters other than Central Bank-related legislation. These have not been included in this response, however they may be found on the ECB's website here: https://www.ecb.europa.eu/ecb/legal/opinions/html/index.en.html.
|
Legislation |
Date opinion sought |
Date opinion received |
|
Financial Emergency Measures in the Public Interest Bill 2015* |
23 October 2015 |
11 November 2015 |
|
Financial Services (Deposit Guarantee Scheme) Act 2009 and draft regulations transposing certain provisions of Directive 2014/49/EU |
9 October 2015 |
29 October 2015 |
|
Central Bank (Amendment) Bill 2014 |
8 December 2014 |
19 December 2014 |
|
Consumer Protection on the Sale of Loan Books Bill 2014 |
11 August 2014 |
12 September 2014 |
|
Public Service (Recruitment and Appointments) (Amendment) Bill 2013* |
6 January 2014 |
28 January 2014 |
|
Central Bank (Supervision and Enforcement) Bill 2011 |
24 June 2013 |
9 July 2013 |
|
Financial Emergency Measures in the Public Interest Bill 2013* |
27 May 2013 |
28 June 2013 |
|
Credit Reporting Bill 2012 |
6 November 2012 |
21 December 2012 |
|
Freedom of Information Bill 2012* |
6 September 2012 |
19 October 2012 |
|
Credit Reporting Bill 2012 |
24 August 2012 |
5 October 2012 |
|
Credit Union Bill 2012 |
18 July 2012 |
4 September 2012 |
|
Central Bank (Supervision and Enforcement) Bill 2011 |
18 May 2012 |
16 July 2012 |
|
Financial Emergency Measures in the Public Interest (Amendment) Bill 2011 and the Public Service Pensions (Single Scheme) and Remuneration Bill 2011* |
20 December 2011 |
26 January 2012 |
|
Central Bank and Credit Institutions (Resolution) (No 2) Bill 2011 |
28 September 2011 |
21 October 2011 |
|
Central Bank (Supervision and Enforcement Bill 2011 |
28 July 2011 |
9 September 2011 |
|
Central Bank and Credit Institutions (Resolution) Bill 2011 |
28 February 2011 |
26 April 2011 |
|
Credit Institutions (Stabilisation) Bill 2010 |
10 December 2010 |
17 December 2010 |
|
Central Bank Reform Bill 2010 |
9 April 2010 |
17 June 2010 |
|
Central Bank of Ireland Bill 2010 (draft heads) |
22 February 2010 |
7 April 2010 |
|
Draft law amending the law on Ireland's membership of the International Monetary Fund (Bretton Woods Agreements Act 1957 to 1999) |
27 January 2010 |
9 February 2010 |
|
Credit Institutions (Eligible Liabilities Guarantee) Scheme 2009 |
22 October 2009 |
9 November 2009 |
|
Draft amendments to the Central Bank Act 1942, to be included in the draft National Asset Management Agency Bill 2009 |
20 October 2009 |
4 November 2009 |
|
National Asset Management Agency Bill 2009 |
30 July 2009 |
31 August 2009 |
|
Credit Institutions (Guarantee of Eligible Debt Securities) Scheme 2009 and Section 17 of the Financial Measures (Miscellaneous Provisions) Bill 2009 |
18 June 2009 |
25 June 2009 |
|
National Pensions Reserve Fund (Amendment) and Miscellaneous Provisions Bill 2009 |
23 February 2009 |
25 February 2009 |
|
Financial Services (Deposit Guarantee Scheme) Bill 2008 accompanied by the draft European Communities (Deposit Guarantee Schemes)(Amendment) Regulations 2008 |
30 October 2008 |
17 November 2008 |
|
Credit Institutions (Financial Support) Scheme 2008 |
10 October 2008 |
15 October 2008 |
|
Credit Institutions (Financial Support) Bill 2008 |
1 October 2008 |
3 October 2008 |
|
Asset Covered Securities (Amendment) Bill 2007 |
25 January 2007 |
14 February 2007 |
|
Central Bank and Financial Services Authority of Ireland Bill (No. 2) 2003 |
24 September 2003 |
19 November 2003 |
|
Central Bank and Financial Services Authority of Ireland Bill 2002 |
16 April 2002 |
5 June 2002 |
|
Amendment to the Economic and Monetary Union Act 1998 |
11 January 2002 |
1 February 2002 |
|
Dormant Accounts Bill 2001 |
14 May 2001 |
31 May 2001 |
|
Mortgage and Public Credit Bond Bill (preliminary draft) |
14 March 2001 |
25 April 2001 |
*Opinion sought by the Minister for Public Expenditure and Reform
106. Deputy Róisín Shortall asked the Minister for Finance his proposals to reduce the tax burden on so-called accidental landlords; and if he will make a statement on the matter. [11442/16]
View answerIn referring to "accidental landlords" I understand the Deputy means property owners in negative equity who have moved to alternative accommodation as a result of factors such as a growing family or a change in work location, while letting out their own property to other tenants.
Some accidental landlords may not have felt in a position to sell their property because they were in negative equity and a sale would crystallise the loss on the property. However, I would point out that the number of mortgages in negative equity is reducing. As noted in the Spring Quarterly Economic Commentary published by the ESRI, the numbers of mortgages in negative equity has fallen below 100,000 for the first time since 2008. This figure had been above 300,000 in 2011.
With regard to the taxation of rental income, the Deputy will be aware that landlords are liable to tax on their net rental profit after deduction of allowable letting expenses, and not on the gross rental income received. A landlord may be allowed a deduction of 75% of the interest paid on borrowed money used to purchase, improve or repair rented premises when calculating rental income. There are also a number of other allowances and deductions available to reduce the tax on rental income paid including the cost of maintenance, repairs, insurance and management of the property, and the cost to the landlord of any goods provided or services rendered to a tenant.
The Office of the Revenue Commissioners has published a guide to the income tax treatment of rental income. It sets out the amount of rental income to be taken account of for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing rental income for tax purposes. This guide is available at: http://www.revenue.ie/en/tax/it/leaflets/it70.html.
The Deputy may also be aware that in Finance Act 2015 I introduced a new relief which will allow a full 100% mortgage interest deduction where a landlord undertakes, for a period of at least three years, to provide accommodation to tenants in receipt of social housing supports and registers such undertakings with the Private Residential Tenancies Board within certain time limits. Further information on this relief is available in section 97 of the Revenue Commissioners Notes for Guidance Taxes Consolidation Act 1997 Finance Act 2015 Edition Part 4 Principal Provisions Relating to the Schedule D charge, which is available at:
http://www.revenue.ie/en/practitioner/law/notes-for-guidance/tca/part04.pdf.
Furthermore, the taxation of all rental property in the State is dealt with under the same legislation, and an attempt to carve out a cohort of 'accidental' landlords would therefore prove problematic. There are many reasons why individuals might choose, or feel obliged, to let out a property which they own while also renting a separate property for their own accommodation, and all are treated equally by the tax system. The provision of additional tax deductions to one sub-set of landlords could also create difficulties in the rental marketplace as a result of the advantage obtained over other landlords of similar residential property.
As regards future measures, the Programme for Government contains a commitment, working with the Oireachtas, to publish a medium-term income tax reform plan for consultation with the Oireachtas Committee on Finance. The focus of the plan is to be on keeping the tax base broad, while reducing excessive tax rates for middle income earners, including landlords, and limiting the benefit for high earners.
107. Deputy Róisín Shortall asked the Minister for Finance to introduce legislation to direct Ireland's strategic investment fund to invest only in carbon neutral and carbon negative energy funds and to ban its future investment in fossil fuel extraction or burning; and if he will make a statement on the matter. [11447/16]
View answerThe Ireland Strategic Investment Fund (the Fund) was established in December 2014 under the National Treasury Management Agency (Amendment) Act 2014, with a mandate to invest on a commercial basis in a manner designed to support economic activity and employment in Ireland.
The first investment strategy of the Fund was published in July 2015. It sets out the long-term strategic direction for the Fund, and states inter alia that the "energy (allocation) will include a significant element of renewables investment". The Fund also commits to operating to high international standards, investing in line with both the Principles for Responsible Investment (PRI), which focus on the management of environmental, social and governance factors to improve sustainability of investment returns, and the Santiago Principles, which are the globally accepted best practice principles for sovereign investment funds.
To-date, any exclusions from the Fund on the basis of ethical considerations are those mandated by legislation. In this regard the only relevant legislation impacting on the Fund's investments is the Cluster Munitions and Anti-Personnel Mines Act 2008.
In relation to carbon neutral and carbon negative energy funds, the ISIF has a close working relationship with the Department of Communications, Climate Change & Natural Resources and is committed to investing in the energy sector is a manner that is consistent with the State's commitment to make the transition to a low carbon, climate resilient and sustainable economy. This State commitment is reflected in the Climate Change and Low Carbon Development Act 2015 and in the Paris Agreement, signed recently by Minister for the Environment, Community and Local Government on Ireland's behalf.
In line with its investment strategy, the Fund has been seeking investments that are consistent with broader Government policy and, in particular, the theme of decarbonisation.
To date the Fund's investment commitments in this regard include:
- significant investments in renewable energy generation - via a joint venture with NTR, via an investment in the Irish Infrastructure Trust and via financing of Gaelectric and Mainstream Renewable Power by Bluebay SME Credit Fund (in which ISIF has been the cornerstone investor);
- Dublin Waste to Energy project, which will have capacity to process up to 600,000 tonnes of waste when complete and generate clean renewable energy for up to 80,000 homes;
- forestry; and
- a designer and manufacturer of high power density high efficiency power supplies.
I am informed by the NTMA that it will continue to seek out further investments for the Fund that are consistent with its mandate and are aligned with national decarbonisation and energy security objectives and with the Government's broader energy policy. The investment pipeline for the Fund currently includes possible opportunities in the areas of biomass, wind, waste management and solar.
The Fund's current investment holdings in fossil fuel companies are among the legacy global investments inherited from its predecessor fund, the National Pensions Reserve Fund (NPRF), which are being gradually sold over a period of years to finance investments in Ireland, as they materialise.
The National Treasury Management Agency (Amendment) Act 2014 also provides that the Fund shall review its investment strategy after 18 months of operation and that in reviewing its investment strategy shall consult with the Minister for Finance and the Minister for Public Expenditure and Reform and that the Minister for Finance may consult with other Government Ministers as appropriate. The issue of whether legislative changes are required in relation to any aspect of the Fund's investment strategy will be considered as part of the review to be conducted in the second half of 2016.
108. Deputy Michael McGrath asked the Minister for Finance the cost of agricultural relief, business relief, favourite nephew status and dwelling house relief against capital acquisitions tax, and the number of claims received for each of these in each of years 2011 to 2015 in tabular form; and if he will make a statement on the matter. [11494/16]
View answer109. Deputy Michael McGrath asked the Minister for Finance the yield from inheritance tax in each of the years 2011 to 2015; and if he will make a statement on the matter. [11495/16]
View answer110. Deputy Michael McGrath asked the Minister for Finance the number of inheritance cases that resulted in a liability for capital acquisitions tax in each of the years 2011 to 2015; and if he will make a statement on the matter. [11496/16]
View answerI propose to take Questions Nos. 108 to 110, inclusive, together.
I am advised by the Revenue Commissioners that the Revenue Statistics web page contains detailed statistical information on Capital Acquisitions Tax (CAT) and other taxes. A breakdown of CAT net receipts, including inheritance tax, is shown at: http://www.revenue.ie/en/about/statistics/receipts-capital-acquisitions-tax.html. Information on tax expenditures, including in relation to Agricultural Relief and Business Relief for 2011 to 2014, is available at http://www.revenue.ie/en/about/statistics/registrations-assessments-transactions-overview.html. The relevant provisional figures for 2015 relating to Agricultural Relief are 2,024 claims at an estimated tax cost of €215 million, while the data for Business Relief for the year is 461 claims at an estimated tax cost of €86.9 million. Updates will be published in due course for later years.
The latest figures in relation to Favourite Nephew relief and Dwelling House exemption are shown in the following table. The necessary detailed data is not available to provide a basis for compiling the cost of Favourite Nephew relief. The estimated cost for the Dwelling House exemption does not take account of the availability or otherwise of the relevant thresholds if the exemption did not apply.
|
|
2011 |
2012 |
2013 |
2014 |
2015 |
|||||
|
Scheme |
Numbers |
Cost €m |
Numbers |
Cost €m |
Numbers |
Cost €m |
Numbers |
Cost €m |
Numbers |
Cost €m |
|
Favourite Nephew |
102 |
N/A |
105 |
N/A |
90 |
N/A |
114 |
N/A |
133 |
N/A |
|
Dwelling House |
565 |
45 |
499 |
38 |
538 |
35 |
614 |
41 |
741 |
52 |
In relation to the third question, the numbers of those who were liable for inheritance tax in each of the years 2011 to 2015 is as shown in the following table. The following table shows only the number of cases where a liability to tax arose; it does not include cases that would not have been liable for tax, e.g. because the beneficiary had not exceeded the relevant life-time tax-free threshold. Figures for 2015 should be considered provisional and may be subject to change.
|
Number of Cases |
2011 |
2012 |
2013 |
2014 |
2015 |
|
Inheritance Tax |
9,705 |
10,011 |
10,166 |
11,651 |
12,987 |
