Written Answers Nos. 189-205
189. Deputy Pearse Doherty asked the Minister for Finance the amount of pre-financing by programme his Department has applied for with regard to the current phase of EU funding programmes; the amount that is likely to be reimbursed to the European Commission; the reasons this money will be reimbursed. [20579/16]
View answerThe Department of Finance does not deal directly with the operational aspects of EU Budget programmes.
190. Deputy Pearse Doherty asked the Minister for Finance if the European Union Commission has ever attempted to or actually imposed fines on Ireland because of the State's vehicle registration tax system; and if he will make a statement on the matter. [20625/16]
View answerFrom time to time the EU Commission raises queries around various tax provisions in Irish legislation, including Vehicle Registration Tax. This is usually done by means of an EU pilot which is a scheme designed to resolve compliance problems without having to resort to infringement proceedings. The pilot can be driven by the need for the Commission to gather information on its own initiative or in response to a complaint - about whether EU law is being correctly applied or whether national law is consistent with EU law. Using this system the Commission sends a query to the national government concerned, which has 10 weeks to reply. The Commission then has 10 weeks to assess the response and, if it is unsatisfactory, the Commission may start infringement proceedings. Otherwise the pilot is closed. The final goal of the system is to allow Member States to remedy potential EU law infringements by complying voluntarily with EU Law.
Accordingly, from time to time, we get such interventions from Europe. For the most part the Commission is satisfied with the response and that is the end of the matter. Other times if the Commission is not satisfied it can lead to infringement proceedings being instigated. In general, even where there is an adverse finding, the member State is allowed a period of time to address the issue through its own legislation. On this basis, the issue of fines rarely if ever arise. No fines have been imposed on the State in relation to VRT nor has any attempt been made in that regard.
191. Deputy Pearse Doherty asked the Minister for Finance the revenue raised through vehicle registration tax for each of the past seven years; and if he will make a statement on the matter. [20626/16]
View answerI am informed by Revenue that the yield from Vehicle Registration Tax (VRT) from 2009 to 2015 is set out in the following table:
Vehicle Registration Tax
|
Year |
€m |
|
2009 |
375.4 |
|
2010 |
383.5 |
|
2011 |
388.4 |
|
2012 |
379.3 |
|
2013 |
437.3 |
|
2014 |
542.1 |
|
2015 |
649.6 |
192. Deputy Niamh Smyth asked the Minister for Finance his plans to sell buildings owned by the credit union in the towns affected by closures (details supplied) following the closure of the credit union sub-offices in the Ballinagh, Killeshandra, Kilnaleck and Belturbet areas of County Cavan in April 2016,; and if he will make a statement on the matter. [20650/16]
View answerCredit unions are member-owned, not-for-profit financial co-operatives that provide savings, credit and other financial services to their members. Similar to any other business, the operation of a credit union is a matter for the credit union itself, including matters regarding the premises from which it operates.
The role of the Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
While the safety of members' savings and the security of the credit union sector as a whole are priorities for this Government, the sale or otherwise of a credit union's premises is essentially a matter for a credit union itself to decide upon.
193. Deputy Dara Calleary asked the Minister for Finance the number of positions on the boards of bodies and agencies under the aegis of his Department; the number of vacant positions; when each vacancy occurred; and if he will make a statement on the matter. [20684/16]
View answerIn response to the Deputy's query, please find in tabular form, where relevant, the numbers of Board members on each agency or body, the number of vacancies, if any, and when those vacancies occurred. The Deputy should note that some of the Board positions are filled on an ex officio basis.
|
Name of Body |
Number of Positions on boards of bodies/agencies under the aegis of the Department |
Number of vacant positions |
When each vacancy occurred |
|
Tax Appeals Commission |
There is no Board; two commissioners, however, are in situ. |
none |
N/A |
|
Comptroller and Auditor General |
Nil (The Comptroller and Auditor General is an ex officio member of the Standards in Public Office Commission) |
- |
- |
|
Central Bank Commission |
12 (including 4 ex officio members who are not appointed by the Minister). |
2 |
N/A - filling these positions is at the discretion of the Minister |
|
Credit Reviewer |
There is no Board. The Minister brings a Memorandum for Government to appoint the Credit Reviewer. The latest appointment took place on 29 March 2010. |
None |
N/A |
|
Credit Union Advisory Committee |
There is no Board |
- |
- |
|
Credit Union Restructuring Board |
12 |
0 |
N/A |
|
Disabled Drivers Medical Board of Appeal |
5 |
0 |
N/A |
|
Financial Services Ombudsman Bureau |
N/A |
N/A |
N/A |
|
Financial Services Ombudsman Council |
The Council is to consist of such number of persons, not fewer than 5, not more than 10, as the Minister decides. At present the Council consists of the Chairperson and 9 members. |
Nil |
7 members' (the Chair and six members) term of appointment will expire on 28 October 2016. StateBoards.ie is in the process of organising to advertise for 'Expressions of Interest' to fill these positions in due course. |
|
Investor Compensation Company Ltd |
12 (3 of which are nominated by Minister) |
None |
N/A |
|
Irish Bank Resolution Corporation |
N/A in Special liquidation |
- |
- |
|
Irish Financial Services Appeals Tribunal |
7 (Appointed by the President) |
0 |
N/A |
|
Irish Fiscal Advisory Council |
5 |
0 |
N/A |
|
National Asset Management Agency |
9 (7 currently filled) |
2 |
NAMA has had at least one vacancy on the board since October 2011. However, due to the nature of Board seat replacements (i.e. each new member replaces the oldest vacancy), the current two vacant seats have arisen as a result of departures from the board in Dec 2013 and Jan 2014 |
|
National Treasury Management Agency |
9 (including 3 ex officio members) |
None |
N/A |
|
National Pensions Reserve Fund Commission |
1 |
None |
N/A |
|
Office of the Revenue Commissioners |
The Office of the Revenue Commissioners is an office of the public service that is a Scheduled Office under the Public Service Management Act, 1997. It has its own Vote and Accounting Officer. It would not be considered a State Board. SI no. 2/1923 made under the Adaptations of Enactments Act provides for the establishment of the Revenue Commissioners. It further provides that the Revenue Commissioners shall consist of three Commissioners who shall be appointed by the President of the Executive Council and shall be removable only by the Executive Council now the Taoiseach and Government respectively. Revenue Commissioners are appointed after a TLAC process. The Ministers and Secretaries (Amendment Act) 2011, section 101, also confirmed that the Revenue Commissioners are independent in the performance of their functions. Revenue does not anticipate any vacancies at Commissioner level arising by end 2016. |
- |
- |
|
Social Finance Foundation |
8 |
1 |
May 2016 |
|
Strategic Banking Corporation of Ireland |
9 |
Nil |
N/A |
194. Deputy John Deasy asked the Minister for Finance the number of bar and pub ordinary on-licences active in each county; and the number which were renewed in each county in 1986, 1996 and 2006. [20708/16]
View answerI am advised by Revenue that the number of bar and pub ordinary on-licences issued in 2016 to date for each county is as set out in the table following. The number of licences renewed in the years 1986, 1996 and 2006 is not available on a county breakdown basis.
Statistical information is available on the Revenue Website www.revenue.ie at the following link http://www.revenue.ie/en/about/publications/statistical-reports.html
|
County |
Issued |
|
County |
Issued |
|
CLARE |
300 |
|
MONAGHAN |
105 |
|
CORK |
991 |
|
OFFALY |
127 |
|
DONEGAL |
401 |
|
SLIGO |
148 |
|
DUBLIN |
930 |
|
TIPPERARY |
413 |
|
GALWAY |
534 |
|
WATERFORD |
236 |
|
KERRY |
476 |
|
WESTMEATH |
178 |
|
KILKENNY |
202 |
|
WEXFORD |
266 |
|
LAOIS |
135 |
|
WICKLOW |
161 |
|
LEITRIM |
106 |
|
CARLOW |
104 |
|
LIMERICK |
357 |
|
CAVAN |
190 |
|
LOUTH |
197 |
|
KILDARE |
206 |
|
MAYO |
398 |
|
LONGFORD |
91 |
|
MEATH |
202 |
|
ROSCOMMON |
200 |
195. Deputy John Deasy asked the Minister for Finance the number of alcohol retail on-licences and off-licences renewed or granted in each county in 2015. [20709/16]
View answerI am advised by Revenue that the number of alcohol retail on-licences and off-licences renewed or granted in each county in 2015 is as follows:
|
County |
Off Licences |
On Licences |
|
CARLOW |
46 |
120 |
|
CAVAN |
66 |
217 |
|
CLARE |
105 |
369 |
|
CORK |
398 |
1,373 |
|
DONEGAL |
138 |
514 |
|
DUBLIN |
793 |
1,932 |
|
GALWAY |
211 |
736 |
|
KERRY |
143 |
632 |
|
KILDARE |
133 |
321 |
|
KILKENNY |
57 |
259 |
|
LAOIS |
62 |
159 |
|
LEITRIM |
21 |
130 |
|
LIMERICK |
135 |
475 |
|
LONGFORD |
37 |
100 |
|
LOUTH |
99 |
254 |
|
MAYO |
117 |
513 |
|
MEATH |
113 |
285 |
|
MONAGHAN |
54 |
130 |
|
OFFALY |
46 |
156 |
|
ROSCOMMON |
36 |
237 |
|
SLIGO |
59 |
184 |
|
TIPPERARY |
127 |
471 |
|
WATERFORD |
94 |
319 |
|
WESTMEATH |
77 |
252 |
|
WEXFORD |
123 |
369 |
|
WICKLOW |
91 |
253 |
196. Deputy Jim Daly asked the Minister for Finance if he is considering any changes to enhance the current mortgage interest relief scheme in the upcoming budget; and if he will make a statement on the matter. [20732/16]
View answerThe Deputy will be aware that in the Programme for a Partnership Government there is a commitment to retain mortgage interest relief beyond the current end date on a tapered basis. Mortgage interest relief is currently scheduled to expire at the end of 2017 and I will consider options for its retention, as set out in the Programme for Government in due course.
At present, Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. Mortgage interest relief has been abolished for homes purchased since 1 January 2013.
On foot of a change I introduced in Budget 2012, first time buyers who bought at the height of the property boom between 2004 and 2008 receive a rate of mortgage interest relief of 30%. This 30% rate continues to apply to these first-time buyers up until the end of 2017. In the absence of this change the mortgage interest relief available for these individuals would have gradually reduced to a rate of 15%.
Single individuals, married couples and civil partners that are first-time buyers, qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum annual interest ceiling of €10,000 and €20,000 respectively. Thereafter relief is restricted to interest ceilings of €3,000 and €6,000 respectively.
The system of mortgage interest relief is designed and targeted in such a way that the relief is of greater value in the early years of a qualifying loan where the interest represents a greater proportion of the repayment. Mortgage interest relief is of lesser value to individuals whose repayments are made up of a higher proportion of principal than interest, as would generally be the case for those who move in to the eighth and subsequent years of their loans. It is worth noting that the application of the ceilings already work to reduce the relief available in a gradual manner. In addition, as the amount of interest payable reduces as a mortgage is paid down, the level of mortgage interest relief also reduces in tandem.
197. Deputy Michael Healy-Rae asked the Minister for Finance if he will review the case of a person (details supplied); and if he will make a statement on the matter. [20767/16]
View answerI am advised by Revenue that they have made direct contact with the person concerned with a view to confirming his overall tax liability and putting in place a mutually satisfactory arrangement to deal with any underpayment of tax, having regard to his personal circumstances.
198. Deputy Dara Calleary asked the Minister for Finance his views on the provision in the Finance Act 2009 that allowed value added tax be recoverable on costs incurred in acquiring and leasing passenger vehicles for business purposes; the costs of this measure on an annual basis since its inception; and if he will make a statement on the matter. [20782/16]
View answer208. Deputy Dara Calleary asked the Minister for Finance regarding the provision in the Finance Bill 2009 that allowed value added tax to be recoverable on costs incurred in acquiring and leasing passenger vehicles for business purposes, the cost of this measure since its inception, by year; and if he will make a statement on the matter. [21210/16]
View answerI propose to take Questions Nos. 198 and 208 together.
The provision referred to by the Deputy was introduced in the Finance (No 2) Act 2008, it provides that a VAT registered person may recover 20% of the VAT incurred on the purchase or leasing of a qualifying vehicle, subject to certain conditions. To qualify, at least 60% of the vehicle's use must be for business purposes and the vehicle must have a level of CO2 emissions of less than 165g/km. As the measure constituted a partial curtailment of a derogation in the VAT Directive enabling the restriction of VAT recoverability in Ireland on passenger vehicles, it may not be reversed.
I am informed by the Revenue Commissioners that it is not possible to furnish precise figures on the Value Added Tax recoverable in relation to acquiring or leasing passenger vehicles for business purposes. This is due to the fact that information provided to Revenue on VAT returns does not require the yield from specific transactions or activities to be identified.
However it can be estimated that the cost of this provision, which allows for Value Added Tax be recoverable at a rate of 20%, is as provided in the table below. An estimated costing for 2015 will not be available until later in 2016.
|
Year |
Estimated Cost (€ Million) |
|
2009 |
14 |
|
2010 |
14 |
|
2011 |
22 |
|
2012 |
18 |
|
2013 |
18 |
|
2014 |
17 |
199. Deputy Pearse Doherty asked the Minister for Finance the net change in value of shares held by the State in each bank in which he has shares since the referendum on Britain leaving the European Union; and if he will make a statement on the matter. [20798/16]
View answerSince opening on Friday morning 24 June to close of business on Friday last, 8 July, the share price of Bank of Ireland fell by 36% and Permanent TSB by 20% as the market reflected the impact of the UK Referendum result on the UK, Irish and European economies. Over the same period, leading UK banks have fallen by a range of 26%-33% while the European bank sector has fallen by 18%. While there are signs of some stabilisation in recent days, clearly these moves suggest investors believe bank profitability in the coming years will be materially impacted. Indeed analysts have already moved to downgrade their earnings projections for UK and Irish banks and companies in many other sectors too.
Given our substantial financial interest in the banking sector, these developments are disappointing and we continue to closely monitoring events as they evolve. As I indicated in recent PQ responses, the current volatility in the stock markets are such that I expected that any market event involving our shares in the banks was more likely in 2017 than this year. As such the State had no plans to dispose of any of its bank shares in the coming months and no sale proceeds are included in the 2016 budget, so there is no immediate impact on our finances. In fact later this month AIB is still scheduled to redeem its Contingent Capital Note of €1.6bn plus accrued interest.
As part of their day-to-day role, officials in the Shareholding Management Unit will continue to monitor market conditions, review all strategic options relating to our banking investments and will consider from time to time whether the sale of shares would be beneficial for the State. Having said that I have no current plans to sell shares in any of the banks, notwithstanding the flexibility to do so within the Programme for Government.
Note: AIB's share price has fallen by circa 5% over the same period though the very small free float involved means this is not a reliable indicator of the change in the bank's underlying value.
200. Deputy Darragh O'Brien asked the Minister for Finance his plans to abolish value added tax on education books bought on e-readers; and if he will make a statement on the matter. [20810/16]
View answer201. Deputy Darragh O'Brien asked the Minister for Finance the amount of value added taxes collected from the purchase of education books on e-readers; and if he will make a statement on the matter. [20811/16]
View answerI propose to take Questions Nos. 200 and 201 together.
The VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. The VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless there is a provision in the VAT Directive that permits a lower rate. The EU VAT Directive does not make provision for a reduction in the VAT rate to e-books.
Any changes to VAT rates outside of what is currently permitted by the EU VAT Directive must be negotiated at EU technical working groups and ultimately agreed by the EU Council of Finance Ministers. The EU Commission recently published an Action Plan on the future of VAT "Towards a single EU VAT Area - Time to decide", which sets out the Commission's pathway for modernising the VAT system and contains a proposal in 2016 to remove VAT obstacles to cross-border e-commerce including e-publications and in 2017 there is a proposal to look at VAT rate policy across the EU.
The Action Plan's proposals may offer Member States more flexibility in the future in determining VAT rates applicable to goods and services. This forum will provide an opportunity to discuss VAT rates applicable to goods and services including e-books as referred to by the Deputy. However, the Deputy will be aware that any proposed changes to the current EU VAT Directive would require unanimous agreement from all member states.
The information furnished on VAT returns does not require the yield from specific transactions or products to be identified therefore, it is not possible to estimate the VAT yield for the product mentioned by the Deputy.
202. Deputy Richard Boyd Barrett asked the Minister for Finance his plans to raise the threshold of inheritance tax of €280,000 and if so when; and if he will make a statement on the matter. [20863/16]
View answerAs with all tax areas Capital Acquisitions Tax, including the details of rates, tax-free thresholds, reliefs and exemptions, is kept under review. As part of Budget 2016 I raised the Group A threshold applying to gifts and inheritance from parents to their children from €225,000 to €280,000. This represented an increase of about 25%. I did this in recognition of the improving state of the national finances and of the concerns expressed to me by people making and receiving gifts and inheritances, particularly in a context of rising property prices.
I indicated at the time that I saw the change to the Group A tax- free threshold in the last Budget as the start of a process. The Deputy may be aware of the commitment in the Programme for a Partnership Government to work with the Oireachtas to raise the Band A Capital Acquisitions Tax Threshold (including all gifts and inheritances from parents to their children) to €500,000.
No decisions have yet been made on the timing of any changes in this area.
203. Deputy Pearse Doherty asked the Minister for Finance the number of names put to him to bring to Government for the post of Ireland's appointee as vice-president of the European Investment Bank; and if he will make a statement on the matter. [20865/16]
View answer204. Deputy Pearse Doherty asked the Minister for Finance the number of applicants there were for the post of Ireland's appointee as vice-president of the European Investment Bank; and if he will make a statement on the matter. [20866/16]
View answer205. Deputy Pearse Doherty asked the Minister for Finance the names of the two independent external third parties with appropriate senior level experience of the public service, banking and finance, and European Union Institutions appointed as part of the selection process for Ireland's appointee as vice-president of the European Investment Bank. [20867/16]
View answerI propose to take Questions Nos. 203 to 205, inclusive, together.
On 1 June I launched an open selection process to identify an Irish nominee as Vice President of the European Investment Bank. The position was advertised on the Department of Finance website and through the Public Appointments Service.
The Vice President is a member of the EIB Management Committee which is the permanent executive body of the Bank which consists of the Bank President and eight Vice-Presidents. The Management Committee oversees day-to-day running of the EIB, under the authority of the President and the supervision of the Board of Directors, prepares decisions for Directors and ensures that these decisions are implemented by the Bank's management and staff. Comprising very experienced senior officials, Management Committee members are solely responsible to the Bank and are independent in the performance of their duties.
My Department received ten applications for the position by the stipulated deadline for applications of 10 June.
The selection process was conducted by a four-person Selection Committee comprising the Secretary General to the Government, the Secretary General of the Department of Finance, Ms Josephine Feehily, Chairwoman of the Policing Authority and Mr Donal de Buitleir, Chairman of the Low Pay Commission.
Following an initial assessment of applications, suitably qualified candidates were short-listed for a competitive interview based on experience, skills and ability to perform effectively in the position. Following this interview, the Selection Committee recommended a maximum of three candidates for consideration by the Minister for Finance who then brought the proposed nominee to Government for its approval. At its meeting on 6 July, the Government approved Mr. Andrew McDowell as Ireland's nominee to the position.
