Written Answers Nos. 190-218
190. Deputy Sean Sherlock asked the Tánaiste and Minister for Justice and Equality the cost of recruiting 200 civilian staff in order to free up a comparable number of gardaí for front-line duty; and if she will make a statement on the matter. [26363/16]
View answerI have requested the Garda authorities to provide information in relation to the matter referred to by the Deputy and will revert to him as soon as I have this to hand.
191. Deputy Sean Sherlock asked the Tánaiste and Minister for Justice and Equality the cost of increasing Garda numbers by 100 in a given year; and if she will make a statement on the matter. [26364/16]
View answerI am informed by the Garda authorities that payroll costs for new Garda recruits include a basic allowance of €184 per week plus a living allowance of €77.92. After 32 weeks of training, Garda recruits are attested and move on to the first point of the Garda pay scale: €23,750; rising to a maximum of €45,793 per annum after 19 years.
The annual cost of 100 new recruits in their first year (assuming a commencement date of 1st January each year) is approximately €2.2 million. This figure includes Employer's PRSI and an estimation of allowances which the recruits may qualify for following attestation. Moreover the annual cost will increase as the members’ move up the Garda pay scale each year.
192. Deputy Sean Sherlock asked the Tánaiste and Minister for Justice and Equality the number of gardaí currently assigned to community policing initiatives; the cost of increasing this number by 100 in any given year; and if she will make a statement on the matter. [26365/16]
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 Units, and I as Minister have no direct role in the matter. Garda management keep this distribution of resources under continual review in the context of crime trends and policing priorities so as to ensure that the optimum use is made of these resources.
I have been informed that there are 783 dedicated Community Police Officers throughout the State. It is, of course, the case that all Gardaí have a role to play in addressing community policing issues as and when the need arises. In that sense, community policing involves far more than a single unit within An Garda Síochána, a point highlighted by the Garda Inspectorate in their third report entitled "Policing in Ireland - Looking Forward" in which they stated that community policing is a fundamental policing philosophy and that there is a strong foundation for it in Ireland.
The Garda Commissioner's Modernisation and Renewal Programme 2016-2021, published on 9 June 2016, places a strong emphasis on developing and supporting the community policing ethos of the organisation and enhancing the current delivery model so that Gardaí spend more time in the community, gaining public confidence and trust and providing a greater sense of security.
With regard to the cost of increasing the number of dedicated Community Police Officers by 100 in any given year, it is not possible to determine the exact cost due to the fact that individual Gardaí are on different points of the salary scale and may be in receipt of various allowances. However, it is the case that the post of Community Police Officer attracts an allowance of approximately €1,575 per annum. Therefore at a minimum, the cost for 100 extra Community Police Officers would be in the region of €157,500.
This Government is committed to ensuring a strong and visible police presence throughout the country in order to maintain and strengthen community engagement, provide reassurance to citizens and deter crime. Key to achieving this goal is the commitment in the "Programme for a Partnership Government" to continue the ongoing accelerated Garda recruitment programme with a view to increasing Garda numbers to 15,000. Taking account of projected retirements, reaching a strength of 15,000 will require some 3,200 new Garda members to be recruited on a phased basis over the next four years in addition to the 1,200 that will have been recruited by the end of this year since the reopening of the Garda College in September 2014. So far 534 recruits have attested as members of An Garda Síochána and have been assigned to mainstream uniform duties nationwide. Community policing, and all other Garda activities, will undoubtedly benefit from the resources now coming on stream through the accelerated Garda recruitment programme.
193. Deputy Sean Sherlock asked the Tánaiste and Minister for Justice and Equality the amount that has been spent on Garda vehicles during 2016; the anticipated spend in this area for the full year 2016; and if she will make a statement on the matter. [26366/16]
View answerAs the Deputy will recall, towards the end of 2015 I secured some €6.5 million in additional funding for the purchase of Garda vehicles to be delivered in 2016. Taken with the sum allocated under the Government's Capital plan in 2016 for vehicles (almost €6 million), over 500 vehicles have come on stream in 2016 at a cost of some €12.5 million. The situation with regard to the Garda fleet is kept under review.
Since 2012, some €40 million has been invested in the Garda fleet. This significant investment provides the Gardaí with additional high-powered vehicles, marked and unmarked patrol cars, and motorcycles for high-visibility road policing. Investment in a modern, effective and fit-for-purpose Garda fleet will continue over the lifetime of the Government’s Capital Plan 2016-2021 which provides €46 million for new Garda vehicles, to ensure that Gardaí can be mobile, visible and responsive on the roads and in the community to prevent and tackle crime.
194. Deputy Declan Breathnach asked the Tánaiste and Minister for Justice and Equality the status of the cross-Border crime agency; the total number of staff involved, agencies engaged and annual budget; and if she will make a statement on the matter. [26399/16]
View answerThe Joint Agency Task Force was one of the important commitments under the 'Fresh Start' Agreement to tackle cross-border organised crime, including that linked to paramilitarism. The Joint Agency Task Force is led by the police and revenue services and brings together the relevant law enforcement agencies to better co-ordinate strategic and operational actions against cross-border organised crime. It involves senior officers from An Garda Síochána, the PSNI, the Revenue Commissioners and HM Revenue and Customs; it also includes the Criminal Assets Bureau and UK National Crime Agency as well as other interested law enforcement services (such as environmental protection agencies and immigration services).
One of the advantages of the structure of the Task Force is its flexibility in providing for different agencies to be engaged at an operational level depending on the nature of the operation and requirements for expertise. In that regard the numbers of personnel involved is variable. From a Garda perspective the work of the Task Force is embedded into the Garda organisation and can draw, therefore, on the full range of Garda and Criminal Assets Bureau expertise and resources in accordance with operational demands.
The Joint Agency Task Force has been operational and active since the start of this year and I received the first six-monthly report on its work at my meeting with the Northern Ireland Minister of Justice, Claire Sugden MLA on 4 July. The report is available on my Department's website.
The report details the work that has been undertaken in establishing the Joint Agency Task Force as well as the particular areas of cross-border criminal activity that have been the subject of joint operations. There have, for example, been specific operations targeting rural crime, child sexual exploitation and human trafficking for labour exploitation that have resulted in a number of arrests, the seizure of stolen vehicles, equipment and other goods, cash and drugs and the identification by the Revenue services of unregistered business interests. In respect of rural crime, there was also a specific focus on awareness-raising and providing crime prevention advice at community level on both sides of the border.
The report illustrates the positive and proactive approach that the Joint Agency Task Force has taken over its first six months and I commend the work of all of the agencies involved.
195. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Justice and Equality the status of the EU ESTA proposal; if she has discussed it with her UK counterpart; and if she will make a statement on the matter. [26400/16]
View answerThe European Commission is currently conducting a feasibility study on an EU Travel Information and Authorisation System (ETIAS), where visa-exempt travellers would register relevant information regarding their intended journey. The system under consideration would be similar to the US Electronic System for Travel Authorization (ESTA) scheme. The final report of the feasibility study is due to be published before the end of 2016.
The proposal will be considered in due course within the EU Justice and Home Affairs framework. It is possible that the proposal will constitute a development of the provisions of the Schengen Acquis in which Ireland (and the United Kingdom) do not take part in its border control provisions in accordance with Council Decision 2002/192/EC.
196. Deputy Mary Butler asked the Minister for Finance the status of small farmers making tax returns; and if he will make a statement on the matter. [24566/16]
View answerI assume the Deputy is asking about the tax return procedures for small farmers.
I would note there is no special tax return scheme for small farmers. However, to assist 'small traders', i.e. low turnover businesses where the owner does not engage a tax agent, Revenue has developed templates that are a guide to preparing a Profit and Loss account which will assist in completing their tax return. One such template is for farmers and is available from the Revenue Commissioners website at http://www.revenue.ie/en/business/farmers-extract-of-accounts-template.pdf.
197. Deputy Jackie Cahill asked the Minister for Finance if a person is to start a solar farm, does the land that the solar farm is on still qualify for agricultural relief on transfer or inheritance; and if he will make a statement on the matter. [24946/16]
View answerI am advised by the Revenue Commissioners that gifts and inheritances of agricultural property, including land, qualify for relief (known as 'agricultural relief') from the payment of Capital Acquisitions Tax (CAT) once certain conditions are satisfied. Section 89 of the Capital Acquisitions Tax Consolidation Act (CATCA) 2003 provides for 'agricultural relief'. The relief takes the form of a 90% reduction in the taxable market value of the gifted or inherited agricultural property.
The person taking the gift or inheritance (the 'beneficiary') of the agricultural property must qualify as a 'farmer' for the purpose of section 89 CATCA 2003. This means that a beneficiary's agricultural property must comprise at least 80% by gross market value of the beneficiary's total property at a particular date. Revenue takes the view that land on which solar panels are installed is not agricultural property for the purpose of establishing whether or not a beneficiary satisfies this '80%' test. Thus, depending on the amount of an individual's land that is actually occupied by solar panels, the use of agricultural land for a solar farm may result in a beneficiary's failure to satisfy the '80%' test and to qualify for agricultural relief.
A condition for agricultural relief that applies in relation to gifts and inheritances taken on or after 1 January 2015 is that a beneficiary, or a lessee where the beneficiary leases the agricultural land, must actually farm the land for a period of at least 6 years after taking the gift or inheritance. As it would not generally be possible to farm any part of the land occupied by solar equipment, the change in the use of land from farming to the generation of solar energy within the required 6-year period would result in a withdrawal of some, or all, of any agricultural relief that had been granted, depending on how much of the land is diverted to this alternative use.
198. Deputy Josepha Madigan asked the Minister for Finance if a person, a first-time buyer who purchased a house for €260,000 in the person's sole name, will qualify to apply for first-time buyer's assistance proposals to be announced in budget 2017 in circumstances where the purchaser signed the contract on 18 July 2016, the seller signed on 21 July 2016 and the sale will close on the 24 August 2016; the date the scheme will be backdated to; if this person will qualify for consideration regarding the date; and if he will make a statement on the matter. [24978/16]
View answer199. Deputy Peter Fitzpatrick asked the Minister for Finance if the circumstances of a person (details supplied) in respect of possible changes in budget 2017 for first-time buyers will be considered; and if he will make a statement on the matter. [24980/16]
View answer200. Deputy Billy Kelleher asked the Minister for Finance if a person (details supplied) will be eligible for the new first-time buyers scheme; and if he will make a statement on the matter. [25077/16]
View answer201. Deputy Mick Barry asked the Minister for Finance the rationale for choosing 21 June 2016 as the starting point for eligibility for the proposed reintroduction of the first time buyers' grant; and the way he will respond to those persons who bought new properties a mere few days or weeks prior to this date who feel aggrieved that they will not be able to avail of this grant despite incurring similar costs to those who are eligible. [25107/16]
View answer211. Deputy Clare Daly asked the Minister for Finance his plans to backdate the first-time buyer's grant to the beginning of July 2016 rather than 19 July 2016; and if he will make a statement on the matter. [24554/16]
View answerI propose to take Questions Nos. 198 to 201, inclusive, and 211 together.
The Government is conscious that there is a supply shortage of housing and of the challenges faced by first-time buyers in meeting the macro prudential rules for home loans. As a complement to the structural actions in the Action Plan for Housing and Homelessness published on 19th July 2016, a new 'Help to Buy' incentive was announced. I will outline the full details of the incentive, including eligibility criteria and implementation method, on Budget day.
Subject to the approval of the Oireachtas, eligibility for the incentive will be back-dated to take effect from 19th July 2016. This was the date of the publication of the Housing Action Plan and the backdating was announced with a view to avoiding any interruption in house sales, through potential purchasers deciding to defer purchases, pending the commencement of the incentive.
While there may be individuals who are disappointed, as with all time limited reliefs, there will always be people who just miss out. Unfortunately, extending the parameters of this new measure any further would become less targeted and more costly.
202. Deputy Sean Fleming asked the Minister for Finance the action he is taking to deal with the increase in the cost of car insurance; if he will introduce awards for injury similar to that which operates in other countries in order that there is more certainty around the matter; and if he will make a statement on the matter. [25123/16]
View answerThe Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance. This review will consider the issue of the level of personal injury awards, particularly compared with those in other countries.
The Working Group brings together all the relevant Departments and Offices involved with the process. Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.
The core areas to be examined by the Working Group in this first phase are:
- The motor insurance sector generally, at present and in recent years
- The effects of legal costs and litigation processes on insurance costs
- The current claims compensation arrangements and the cost of claims
- Insurance data and information
- The impact of accident rates
- The impact of unlawful activity on the insurance sector, and
- Other market issues.
Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced. The sub-groups will be holding their second meeting in the coming days and it is proposed that they meet regularly. The outputs of these sub-groups will feed into the meetings of the Working Group.
The consultation process has commenced. Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including: Insurance Ireland, AA Ireland, the Irish Brokers Association, the Injuries Board, IBEC, FBD Insurance, and the Central Bank of Ireland.
The Working Group and the four sub-groups will also meet with the relevant stakeholders. At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers Association of Ireland. In addition, submissions received from all interested parties will be considered as part of the process. Further consultation will take place through the sub-groups with key stakeholders specific to their work.
By the end of October, the Working Group will provide me with an update report which will set out the priority actions required. From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.
While the Government cannot direct insurance companies on the pricing or provision of insurance products, it can identify measures that may, in the short, medium and longer term, lead to a better operating environment and a reduction in claim costs.
203. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the commencement date and timeframe for reporting, membership, terms of reference and consultative plans of the review body established to investigate and inquire into the motor insurance industry and specifically the unprecedented and extraordinary increases recorded in motor insurance costs in recent times; and if he will make a statement on the matter. [25600/16]
View answerThe Cost of Insurance Working Group, chaired by Minister of State Eoghan Murphy TD, is undertaking a review of the factors which are influencing the increased cost of motor insurance.
The Working Group brings together all the relevant Departments and Offices involved with the process. Its objective is to identify immediate and longer term measures which can address increasing costs, while bearing in mind the need to maintain a stable insurance sector.
Membership of the Working Group comprises representatives from the Department of Finance, the Department of Jobs, Enterprise and Innovation, the Department of Justice and Equality, the Department of Transport, Tourism and Sport, the Central Bank of Ireland, the State Claims Agency and the Personal Injuries Assessment Board.
The core areas to be examined by the Working Group in this first phase are:
- The motor insurance sector generally, at present and in recent years
- The effects of legal costs and litigation processes on insurance costs
- The current claims compensation arrangements and the cost of claims
- Insurance data and information
- The impact of accident rates
- The impact of unlawful activity on the insurance sector, and
- Other market issues
Because the issue of the cost of insurance is complex and in order to get to the heart of these issues as soon as possible, Minister of State Eoghan Murphy has established four sub-groups to review them in detail. Chairs have been appointed to these sub-groups and work has already commenced. The sub-groups will be holding their second meetings in the coming days and it is proposed that they meet regularly. The outputs of these sub-groups will feed into the meetings of the Working Group. As well as the organisations represented at Working Group level, the sub-groups also include representatives from An Garda Síochána, the Road Safety Authority and the National Roads Authority.
The consultation process has commenced. Minister of State Murphy has had informal meetings with representatives from a number of key stakeholders including: Insurance Ireland, AA Ireland, the Irish Brokers Association, the Personal Injuries Assessment Board, IBEC, FBD Insurance, and the Central Bank of Ireland.
The Working Group and the four sub-groups will also meet with the relevant stakeholders. At its meeting this week, the Working Group will meet with representatives from the Law Society, AA Ireland, the Irish Brokers Association and the Consumers Association of Ireland. In addition, submissions received from all interested parties will be considered as part of the process. Further consultation will take place through the sub-groups with key stakeholders specific to their work.
By the end of October, the Working Group will provide me with an update report which will set out the priority actions required. From November to December, the Working Group will develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. In this regard, the Chair will be consulting regularly with Government colleagues.
204. Deputy Pearse Doherty asked the Minister for Finance the total revenue collected by the State as a result of the introduction of a charge for licences for betting intermediaries and for remote betting licences; and if he will make a statement on the matter. [24879/16]
View answer205. Deputy Pearse Doherty asked the Minister for Finance the total revenue raised to date by the introduction of betting intermediary duty and the expected revenue in 2016; and if he will make a statement on the matter. [24880/16]
View answerI propose to take Questions Nos. 204 and 205 together.
In relation to Question 24879/16, I am informed by the Revenue Commissioners that the yield from the introduction of a charge for betting intermediaries and for remote betting licences from the period July 2015 to August 2016 is as follows:
|
Licence Type |
Issued |
Total |
|
Remote Betting Intermediary's Licence |
12 |
€120,000 |
|
Remote Bookmaker's Licence |
47 |
€470,000 |
|
Total |
59 |
€590,000* |
*A small amount of this payment is outstanding due to a small number of customers choosing to pay by instalments.
In relation to Question 24880/16, I am informed by Revenue that the betting intermediary duty received in 2015 and for the period January to July 2016 is as follows:
|
- |
€m |
|
2015 |
0.3 |
|
2016 |
1.4 |
Please note that returns are due on a quarterly basis, in the month following the quarter end. The total revenue in 2016 is expected to be €1.9m.
206. Deputy Catherine Murphy asked the Minister for Finance if he has considered tax breaks for persons or families renting their unoccupied properties to a person or family with an identified social housing need or emergency housing need to facilitate the provision of housing in this current housing emergency; if any income assessment has been carried out where families do not benefit from renting properties as the cost in taxes due are too prohibitive; to identify a scheme where, if a family shows it is providing housing and covering costs and this is not considered as more cost beneficial to the State than the cost of emergency and hotel accommodation, his plans to develop an innovative scheme that will allow these unoccupied properties to be rented to a third party while being family-assessed for tax purposes where it does not cost the family to provide rental accommodation where mortgage payments plus taxes due on the income from rental are higher than actual rental income; the barriers he has identified to the provision of such a scheme; and if he will make a statement on the matter. [24360/16]
View answerLandlords are liable to tax on their net rental profit after deducting allowable letting expenses, and not on the gross amount of rental income received. A landlord may claim a deduction for other costs such as maintenance, repairs, insurance, management of the property and any goods provided or services rendered to the tenant.
A deduction for 75% of the interest paid on borrowed money used to purchase, improve or repair the rented premises is also allowed. In addition, the Deputy will be aware that in Finance Act 2015 I introduced a new relief to allow 100% mortgage interest deductibility for landlords who undertake, for at least three years, to provide accommodation to tenants in receipt of social housing supports. The relief is designed to improve the stability of housing supply to such tenants, and operates by means of an increase from 75% to 100% in the deductibility of mortgage interest against the landlord's rental income.
This relief was one element of an overall package of measures designed by the last Government aimed at stabilising rent and boosting supply in the housing market which, in my view, is the most appropriate and effective route to addressing rental price increases driven by supply constraints. The current Government is continuing this process and, in addition to a commitment to maintain the enhanced tax relief for landlords of tenants in receipt of social housing supports, the Programme for a Partnership Government also contains a number of non-tax commitments relating to increasing the supply of both social and private housing.
With regard to families with unoccupied properties, it would seem reasonable that in this situation it would normally be more beneficial to rent out the property where possible, even if the rent paid does not cover the relevant mortgage payment. If the property remained unoccupied, the mortgage payment would still have to be paid without the property generating any rental income. It should also be noted that in most cases a mortgage repayment contains a capital repayment element in addition to the interest cost.
To extend relief further to allow a deduction for the full interest and capital cost of a mortgage repayment in addition to other allowable letting expenses, as appears to be suggested in the Deputy's question, would in effect see the State further subsidise the purchase by a private individual of a residential rental investment property. I do not believe that this would be an appropriate use of State resources at this time.
207. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the steps he will take to ensure a more favourable deployment of Ireland Strategic Investment Fund, ISIF, capital supports across counties Donegal, Cavan and Monaghan thereby supporting a greater share of the jobs assisted across the State in these Border counties whose economies are already showing the adverse effects of the recent Brexit decision and where real fears abound regarding the future; the details of the ISIF benefiting companies in each of the counties in 2015; and if he will make a statement on the matter. [24374/16]
View answerIndividual investment decisions by the Ireland Strategic Investment Fund (ISIF) are a matter for the Fund's Investment Committee in accordance with its statutory mandate, which is to invest on a commercial basis to support economic activity and employment in Ireland.
The legislation passed by the Oireachtas which established the ISIF, the NTMA (Amendment) Act 2014, does not include any regional allocation of investment but does require ISIF to include an assessment of its impact on economic activity and employment and the distribution of its investments on a regional basis in its reporting.
ISIF's most recent Economic Impact Report, which is available on the ISIF website, http://www.isif.ie/how-we-invest/economic-impact/, covers the twelve months to end-December 2015. That Report contains national and regional level data on the Fund's investments and economic impact in 2015. It underlines on page 6 the regional spread of ISIF's investments, showing that 60% of jobs supported and 46% of capital invested are outside of Dublin. Approximately 3 to 4 per cent of investment and economic impact achieved to-date are in the three Ulster counties. County level information is not provided as the publication of such information could inadvertently result in the disclosure of commercially sensitive information relating to underlying investee companies.
I am advised by the NTMA that ISIF is keen to engage in discussion of any potential commercial investment opportunities, which meet its double bottom line mandate of commercial return and economic impact, across all parts of the country. In this regard, ISIF is currently engaged with a wide array of public and private sector entities throughout the country with a view to developing suitable investment opportunities and is very much open to further approaches.
208. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the fact that a growing number of developers and speculators are using special purpose vehicles, including section 110 companies, ICAVs and qualifying investor funds for tax efficient reasons to structure their business dealings in land and property; and if he will make a statement on the matter. [24408/16]
View answerI am aware of the recent media coverage and references in the Dail regarding the use of special purpose vehicles including section 110 companies for property transactions, without paying a level of tax that should be applicable to such transactions.
In light of this I have moved to publish a proposed amendment to section 110 of the Taxes Consolidation Act 1997 which I believe will ensure that Ireland's tax base remains protected when business dealings involving land or property are undertaken using the section 110 regime. The proposed amendment as published on the 6th of September is intended to apply to profits arising from the business of qualifying companies that involve the holding, managing or both the holding and managing of specified mortgages, including any activities which are ancillary to that business, after 6 September 2016. Specified mortgages refers to any financial asset that derives its value, or the greater part of its value directly or indirectly, from land in the State. The part of the section 110 company's business that relates to specified mortgages will be treated as a separate business from any other business the company may carry on and, with certain exceptions, no interest above an arm's length rate will be deductible in computing the taxable profits of that part of the business.
Targeted measures regarding the use of funds in the Irish property market are also being prepared for my consideration.
209. Deputy Peadar Tóibín asked the Minister for Finance the number of staff within the Revenue Commissioners who have an accountancy qualification; and the proportion of staff who have an accountancy qualification and who are chartered accountants. [24416/16]
View answerI am advised by Revenue that more than 120 of their staff have attained professional memberships related to Accountancy. In addition to professional accountancy qualifications at least 756 staff have other qualifications in the areas of Accountancy, Finance and Business Studies.
They have also advised that over 860 staff have qualifications in respect of Taxation. These taxation qualifications normally include accountancy as a subject.
This information is primarily based on a staff survey undertaken in 2012. Revenue are in the process of capturing further information in relation to the skills and qualifications of their staff and expect that the results will show greater numbers of staff qualified in the areas of accountancy and taxation.
210. Deputy Clare Daly asked the Minister for Finance the number of persons expressed in ordinary numbers who are in the category of owning 201 plus properties for the purpose of local property tax. [24453/16]
View answer226. Deputy Alan Farrell asked the Minister for Finance if he will provide the local property tax receipts by year, in tabular form, since its introduction; and if he will make a statement on the matter. [24719/16]
View answerI propose to take Questions Nos. 210 and 226 together.
I am advised by Revenue that statistics relating to Local Property Tax (LPT) can be found on the statistics webpage of the Revenue website at http://www.revenue.ie/en/about/statistics/index.html. This includes receipts information in respect of 2013 to 2015 available at http://www.revenue.ie/en/tax/lpt/lpt-stats-2013-2015.pdf and to end June 2016 is available at http://www.revenue.ie/en/about/statistics/local-property-tax-june2016.pdf. Updates to these statistics will be provided in due course.
In relation to Question 24453/16, LPT information in respect of owners of in excess of 201 multiple properties is included in the statistics on the Revenue website. I am advised that, due to the still preliminary nature of the Revenue LPT register, any such figure is provisional and subject to change. However, I am advised by Revenue that it is estimated that the number of liable persons owning more than 200 properties is approximately 50.
212. Deputy Richard Boyd Barrett asked the Minister for Finance to review the single person child carer credit, SPCCC, for a person (details supplied); and if he will make a statement on the matter. [24585/16]
View answerThe Single Person Child Carer Credit (SPCCC) replaced the One-Parent Family Tax Credit (OPFTC) with effect from 1 January 2014. It operates differently from the One-Parent Family Credit in that it is available in the first instance only to the Primary Claimant.
The Primary Claimant is the individual with whom the child resides for the whole or greater part of the year. The Primary Claimant must be either the child's parent or the individual who has custody of the child and who maintains the child at his or her own expense for the whole or the greater part of the year.
As I have pointed out before, it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and, if necessary, re-focused in order that they can achieve the socio-economic objectives that are set for them. A system which allowed, under the OPFTC, multiple claims in respect of the same child was unsustainable.
The Commission on Taxation acknowledged that the previous One Parent Family Tax Credit played a role in supporting and incentivising the labour market participation of single and widowed parents. However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the primary carer only. The restructuring of the credit into the SPCCC achieves such an outcome.
It is possible for a qualifying Primary Claimant to surrender (relinquish) his or her entitlement to the credit in favour of a Secondary Claimant where the child resides with that Secondary Claimant for at least 100 days per year. It should be noted that a Secondary Claimant does not qualify for the SPCCC in his/her own right. Rather it is the primary carer of the child who is entitled to the credit, subject to meeting the qualifying criteria, and, should he/she choose, may subsequently surrender the credit to a Secondary Claimant who has care of the child for at least 100 days in a year. Where the child's primary carer is married, in a civil partnership or cohabiting they would not be entitled to the SPCCC (or indeed the former credit), on the basis that the relevant child is not, in the main, being cared for by a single person. In such circumstances the Primary Claimant cannot relinquish the credit to a secondary carer.
I am advised by Revenue that in the case concerned, as the Primary Claimant has remarried, then the Secondary Claimant has no entitlement to the claim. However should the Secondary Claimant become the primary carer of the child in the future, he/she may be entitled to apply for the SPCCC in his/her own right.
213. Deputy Michael McGrath asked the Minister for Finance the reason the standard rate of VAT applies to dog grooming services; if this matter is under review; and if he will make a statement on the matter. [24607/16]
View answerThe supply of dog grooming services is liable to VAT at the standard rate, currently 23%. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive lists goods and services to which Member States may apply a reduced VAT rate in Annex III. As Annex III does not list dog grooming it is not possible under that provision to apply a reduced VAT rate to dog grooming services.
Furthermore, the EU VAT Directive also allows for the continuation of historic VAT rating. Where a Member State applied a zero or reduced VAT rate to a good or service on and from 1 January 1991, they are entitled to retain that historic VAT treatment. However, dog grooming services did not apply at a zero or reduced VAT rate on 1 January and as such it is not possible to apply a reduced or zero VAT rate to the service now.
This historic reduced VAT rate treatment does apply, however, to the supply of services by a veterinary surgeon, which is liable to VAT at the 13.5% rate because Ireland applied a reduced VAT rate to those services on 1 January 1991. In this context, where a veterinary surgeon carries out a dog grooming service as part of a veterinary procedure, such as treating an illness or disease, the dog grooming is considered part of the veterinary procedure and the entire procedure is liable to VAT at the 13.5% rate. However, where a veterinary surgeon provides a dog grooming services as a supply that is distinct from a veterinary procedure the service is liable to VAT at the 23% rate.
214. Deputy Michael McGrath asked the Minister for Finance the taxation treatment of the compensation amounts received by persons here in respect of the collapse of a company (details supplied) in the UK; and if he will make a statement on the matter. [24609/16]
View answerI am advised by Revenue that information relating to the tax treatment of compensation payments from the Equitable Life Payment Scheme is contained in Revenue's Tax and Duty Manual 15-02-09 which may be accessed from the following link;
http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-15/15-02-09.pdf.
In brief, where an individual receives regular annual payments under the Scheme, such payments are chargeable to income tax.
Compensation payments in the form of lump sum payments from the Scheme are regarded as capital sums derived from the policies. Gains accruing on the disposal of the policies by the original policyholders would be exempt from CGT (assuming such disposal was permissible). In the light of this, gains in respect of compensation payments under the Scheme to original policyholders may also be treated as exempt from CGT.
215. Deputy Pearse Doherty asked the Minister for Finance when the Central Bank first became aware of issues at a company (details supplied) and the steps it took from that date to protect Irish consumers. [24613/16]
View answerEnterprise Insurance Company plc (Enterprise) is a Gibraltar incorporated company subject to prudential supervision in Gibraltar by the Gibraltar Financial Services Commission (the GFSC). Enterprise was selling motor insurance in a number of European countries including Ireland on a freedom of services basis.
The Central Bank of Ireland has informed me of the following:
The Central Bank was notified by the GFSC on 22 July that it was taking steps, with the cooperation of Enterprise, to petition for the winding up of the Company. The GFSC took this action as Enterprise had told the GFSC that the company was insolvent and had not been able to secure additional funding.
The GFSC also notified the European Insurance and Occupational Pensions Authority (EIOPA), and the relevant financial services regulators and compensation schemes in France, Greece, Italy, Norway, Ireland and the UK, where Enterprise has written business.
The Supreme Court of Gibraltar appointed Mr. Frederick David John White of Grant Thornton (Gibraltar) Limited as Provisional Liquidator of Enterprise Insurance Company Plc on 25 July 2016.
The Central Bank has worked closely with the GFSC since 22 July to ensure that all Irish motor policyholders are identified and are communicated with directly.
The Central Bank issued a press statement on 22 July to alert consumers of the issue and to encourage them to arrange new insurance as soon as possible. The Central Bank has updated this press statement as necessary.
The Central Bank has been in on-going contact with and has been onsite in Wrightway Underwriting Limited (Wrightway), the master general agent for Enterprise in Ireland, to ensure that Wrightway is acting in the best interest of the consumers.
On 27 July the Central Bank contacted the 323 insurance brokers who sold Enterprise products to consumers requiring them to immediately contact any policyholder who holds a current Enterprise motor insurance policy and inform them of the urgency to make alternative motor insurance arrangements. This urgency stems from the fact that any claim made by policyholders who hold active policies with Enterprise, may not be fully covered irrespective of the policy remaining in force. It is noted by the Central Bank that Wrightway has agreed to make an ex gratia payment equal to the value of the premiums from now until the end of the contract term, in respect of any policyholder who holds a current Enterprise motor insurance policy.
On 12 August the GFSC issued a warning to the public regarding the website "enterpriseinsuranceclaim.com". This website purports to offer assistance with claims against Enterprise Insurance Company Plc which is currently in provisional liquidation. The Central Bank has alerted the public to this warning via it website.
The website contains false and misleading information regarding the validity of Enterprise insurance policies and the position of policy holders while the company is in provisional liquidation. There are concerns about the legitimacy of the website and the purpose for which subscriber information will be used. The Central Bank has indicated that policyholders should not rely on statements contained on this website but should instead refer to information issued by the GFSC and the Provisional Liquidator.
216. Deputy Pearse Doherty asked the Minister for Finance if the Central Bank is currently in contact with regulators from any other countries regarding concerns the bank has concerning insurance companies operating here; and if he will make a statement on the matter. [24614/16]
View answerInsurance companies authorised in a particular Member State are allowed conduct business in other Member States without being authorised there under the EU single market rules. This is done through 'passporting' which is the establishment of a branch or operation by way of freedom of services. Passporting is not applied for but notified. In such circumstances, EU insurance legislation puts the onus on domestic supervisors to supervise for prudential purposes this passporting business conducted in other Member States.
The Central Bank has indicated that supervisory authorities across the European Union cooperate and share relevant information to achieve the objectives of insurance supervision and, in particular, financial stability and adequate protection of policyholders and other stakeholders. The supervision of most insurance companies established in Ireland is conducted within European supervisory colleges where some decision-making is shared with the group supervisor and European Insurance and Occupational Pensions Authority (EIOPA) as per Solvency II.
I am informed by the Central Bank of Ireland that earlier this year it asked the Gibraltar Financial Services Commission to review the Irish motor business of Gibraltar based firms and offered its assistance in that regard, drawing their attention to the Central Bank's Bodily Injury Thematic Review and the increasing cost of claims in Ireland. The Central Bank followed that letter with a visit to GFSC on 7 July 2016.
The Central Bank's Bodily Injury Thematic Review was published in November 2015. It reviewed bodily injury claims and reserving data and assessed the extent to which the insurance industry's data reflected the upward trends in frequency and cost of claims up to the end of 2014.
The Central Bank also discussed the Bodily Injury Thematic Review with its peers at a European Insurance and Occupational Pensions Authority's Practitioners Day on 'Supervisory aspects of Motor Insurance' on 21 June 2016 and bilaterally with foreign supervisors of insurance firms having significant motor insurance business in Ireland.
217. Deputy Pearse Doherty asked the Minister for Finance his views on whether section 8 of the Charities Act 2009 is functioning as intended in preventing the abuse of charity status by special purpose vehicles; and if he will make a statement on the matter. [24617/16]
View answerThe question of whether section 8 of the Charities Act 2009 is functioning as intended is a matter for the Charities Regulator. I believe the matter is currently subject to a separate review.
218. Deputy Maureen O'Sullivan asked the Minister for Finance the status of the engagement he has had with the Insurance Ireland regarding the situation in East Wall, Dublin 3, and the failure of insurance companies to grant home insurance specifically covering flooding to houses that have never been flooded and houses that are prone to flooding but in areas where substantial flood prevention work has been carried out; and if he will make a statement on the matter. [24618/16]
View answerThe provision of insurance cover is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.
In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance.
To achieve this aim the OPW is carrying out assessments of 300 areas under the Catchment Flood Risk Assessment and Management (CFRAM) programme and each area will have a Flood Risk Management Plan (FRMP) by the end of 2016. Decisions on future investment in relation to flood risk management will be informed by the FRMP's. Dublin city is among the 300 areas of further assessment under the CFRAM programme. Work on the preparation of draft Flood Risk Management Plans for the Eastern Region (including Dublin City) is nearing conclusion, and OPW expect to publish the draft plans for public consultation in mid to late September.
This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland which provides for the transfer by the OPW of data in relation to completed flood defence schemes to the insurance industry.
I have been informed by the OPW that there are no flood protection works currently underway or planned in the East Wall area. The River Tolka Dublin City Flood Defence scheme provided protection to a significant part of the East Wall area of Dublin, mainly on the western side of the Dublin-Belfast railway line, and maps are available on the OPW website showing the protected areas. Details of the protection works were provided to Insurance Ireland by the OPW in accordance with the Memorandum of Understanding.
An Inter-Departmental Flood Policy Co-ordination Group has been established to examine the issue of flooding, and to ensure a whole of Government approach in the area of Flood Policy. This Group is chaired by Seán Canney TD, Minister of State with special responsibility for the Office of Public Works and Flood Relief. The OPW are the lead agency and have responsibility for submitting the final report of the group to Government.
As an input to the Inter-Departmental Group's work the Department of Finance has carried out a review of flood insurance with a particular focus on the strategies that other jurisdictions have implemented to increase the availability of flood insurance cover. This work examined a number of policy options and has made a number of recommendations. The completed report has been provided to OPW to feed into the final report of the Inter-Departmental Group.
