Michael Healy-Rae
Question:26. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding insurance for rowing clubs; and if he will make a statement on the matter. [30005/16]
View answerInsurance Coverage
Questions (26)
Written answers
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and the need to provide for adequate provisioning to meet those risks. These are considered by insurance companies on a case by case basis.
My Department has embarked on a review of policy in the insurance sector which is being undertaken in consultation with the Central Bank and other Departments and Agencies. The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector.
As part of that Review, I have established the Cost of Insurance Working Group, chaired by the Minister of State Eoghan Murphy T.D. This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The Working Group, which is focussing initially on the issues of rising motor insurance premiums, is due to provide me with an initial set of recommendations at the end of this month. From November to December, the Working Group will then develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions. It is my view that the implementation of the action plan will also have an impact on other areas of non-life insurance.
However, it should be noted that I have not ruled out the possibility of the existing Cost of Insurance Working Group looking at other non-life insurance sectors if it is clear that there are separate and distinct issues which need particular examination in order to improve the functioning and regulation of these parts of the market.
Motor Insurance
Questions (27)
Frank O'Rourke
Question:27. Deputy Frank O'Rourke asked the Minister for Finance the measures he is proposing to bring about a reduction in car insurance premiums; the timeline for the implementation of such measures; and if he will make a statement on the matter. [30014/16]
View answerWritten answers
I am aware of the increasing cost of motor insurance and am very concerned about it. However, the ability of the Government to influence pricing is limited as insurance companies are required under European law to price in accordance with risk and neither I, as Minister for Finance, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing of insurance products. In addition, I have to be conscious of the need for a stable insurance sector and that risks to policyholders and to the wider financial system are kept as limited as possible.
However, while the provision and the pricing of insurance policies is a commercial matter for insurance companies, this does not preclude the Government from introducing measures that may, in the longer term, lead to a better claims environment that could facilitate a reduction in claims costs. Consequently,
I have established a Cost of Insurance Working Group chaired by Minister of State Eoghan Murphy T.D. This Working Group consists of a number of relevant Government Departments, the Central Bank of Ireland, the Personal Injuries Assessment Board and the State Claims Agency. The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector.
The core areas to be examined by the Working Group in the 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 T.D. 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 are meeting weekly and their outputs will feed into the meetings of the Working Group. The Working Group has held five meetings to date and will continue to meet every two to three weeks to the end of 2016.
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 Injuries Board, the Irish Brokers Association, IBEC, FBD Insurance, and the Central Bank of Ireland. The Working Group and the four sub-groups are also meeting with the relevant stakeholders. The Working Group has met with representatives from the Law Society, AA Ireland, the Irish Brokers Association, the Irish Car Rental Council, the Irish Road Haulage Association and the Consumers Association of Ireland. Further consultations will be arranged. In addition, submissions received from all interested parties will be considered as part of the process.
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 then develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of these priority actions.
Office of the Comptroller and Auditor General
Questions (28)
Seán Fleming
Question:28. Deputy Sean Fleming asked the Minister for Finance the position of the role of the Comptroller and Auditor General in 1924 and if this was an independent office or part of the Department of Finance at that stage; if records can be obtained regarding the persons who were the employees in the Comptroller and Auditor General's Office in that year and their respective duties; and if he will make a statement on the matter. [30037/16]
View answerWritten answers
The position of Comptroller and Auditor General (C & AG) was provided for both in the 1922 Irish Free State Constitution, which stated "Dáil Eireann shall appoint a Comptroller and Auditor-General to act on behalf of the Irish Free State (Saorstát Eireann). He shall control all disbursements and shall audit all accounts of moneys administered by or under the authority of the Oireachtas and shall report to Dáil Eireann at stated periods to be determined by law" and the Comptroller and Auditor General Act of 1923, which specified the appointment of "a Comptroller-General of the Receipt and Issue of the Exchequer of Saorstát Eireann and Auditor-General of Public Accounts who shall be styled and known as the Comptroller and Auditor-General (Árd-Scrúdóir) and who shall act on behalf of Saorstát Eireann."
The Act also states that "The Minister for Finance shall from time to time appoint the officers, clerks, and other persons in the Department of the Comptroller and Auditor-General and regulate the numbers, salaries and conditions of employment of the respective grades or classes into which such officers, clerks, and other persons shall be divided." It should be noted, however, that the Act gave the Comptroller and Auditor "full power to make from time to time orders and rules for the conduct of the internal business of his Department and to promote, suspend, or remove any of the officers, clerks, and other persons employed therein, and also, subject to the approval of the Minister for Finance, to make regulations and prescribe forms for the guidance of departments and persons in making up and rendering their accounts to him for examination."
Further the Office of the Comptroller and Auditor General is not among those listed as being among the branches of administration assigned to the Department of Finance in the Ministers and Secretaries Act 1924, an act often regarded as the founding document of the Department of Finance. The Comptroller and Auditor General Act of 1923 and the more recent Comptroller and Auditor General (Amendment) Act 1993 are the principal legislative instruments governing the C&AG. Both the Constitutional and legislative provisions ensure the absolute independence of the C&AG and the Office of the C&AG to operate independently of government.
In terms of records sought by the Deputy regarding persons who were the employees in the C&AG in 1924 such records may be held by the National Achieves of Ireland.
Tax Data
Questions (29)
Seán Fleming
Question:29. Deputy Sean Fleming asked the Minister for Finance following the paper issued in December 2014 which sets out best practice guidelines for the valuation of tax expenditures and that the frequency of ex-post evaluations and ex-ante evaluations were identified, if such evaluations were carried out in respect of section 110 and the tax forgone by the State; when these were carried out; the details of the evaluations; and if he will make a statement on the matter. [30039/16]
View answerWritten answers
As was set out in the 2014 Report on Tax Expenditures, the definition of a tax expenditure in Irish legislation draws on an OECD definition and describes a tax expenditure as a transfer of public resources that is achieved by: (a) Reducing tax obligations with respect to a benchmark tax rather than by direct expenditure; or (b) Provisions of tax legislation that reduce or postpone revenue for a comparatively narrow population of taxpayers relative to the tax base.
In order to identify a tax expenditure, a baseline is needed against which a tax reducing measure can be recognised as either part of the 'normal' tax structure or as a tax expenditure. The section 110 regime is not viewed as a tax expenditure and has not been included as same in reports that my Department have published relating to tax expenditures alongside the last two Budgets. As the section 110 regime is not viewed as a tax expenditure no ex-post or ex-ante evaluations have been required or carried out in respect of the regime.
The rationale for not deeming section 110 a tax expenditure is due to the fact that is part of our normal tax structure. It is the legal framework for Ireland's securitisation industry which is a key feature of tax regimes internationally. Section 110 sets out a regime for the taxation of special purpose companies set up to securitise assets. The tax provisions are intended to ring-fence the use of section 110 companies for bona-fide securitisation purposes and structured finance purposes.
The features of the regime are that:
- The company must be tax resident in Ireland and carry on the business of holding or managing "qualifying assets";
- "Qualifying assets" for Section 110 purposes includes a broad range of financial and other assets including shares, bonds, derivatives, loans, deposits, commodities, plant and machinery and invoices and other types of receivable;
- The value of "qualifying assets" must be at least €10 Million at the time they are acquired by the Section 110 company;
- Apart from the holding or managing of the "qualifying assets" the company cannot carry on any other activities.
Inniúlacht sa Ghaeilge sa Státseirbhís
Questions (30)
Peadar Tóibín
Question:30. D'fhiafraigh Deputy Peadar Tóibín den Aire Airgeadais cad é an líon daoine a bhfuil cumas feidhmeach acu sa Ghaeilge agus atá ag obair ina Roinn. [30072/16]
View answerWritten answers
Níl aon phost sa Roinn daingnithe mar phost a bhfuil riachtanas Gaeilge ag baint leis.
Ní gnách leis an Roinn seirbhísí a chur ar fáil don phobal go díreach. Mar sin féin, sa chás go bhfuil gá le haistriúchán agus nach bhfuil ball foirne atá inniúil i nGaeilge ag Rannóga, nó nach bhfuil an duine sin ar fáil, cuirfidh ball foirne ainmnithe ó Rannóg eile seirbhís ar fáil nuair is gá.
Tabhair faoi deara go ndearnadh suirbhé Teanga and Cáilíochtaí le linn 2015 inar léiríodh go bhfuil inniúlacht sa Ghaeilge ag cúigear ball foirne. Is ionann sin agus thart ar 1.7% de líon foirne reatha na Roinne.
Inniúlacht sa Ghaeilge sa Státseirbhís
Questions (31)
Peadar Tóibín
Question:31. D'fhiafraigh Deputy Peadar Tóibín den Aire Airgeadais an bhfuil sprioc leagtha amach maidir le líon daoine a bhfuil cumas feidhmeach acu sa Ghaeilge a bheith ag obair sa Roinn de réir reachtaíochta agus an bhfuil an sprioc sin bainte amach go fóill. [30087/16]
View answerWritten answers
Tá an Roinn eolach ar na dualgais atá uirthi faoi Acht na dTeangacha Oifigiúla, 2003. Níl sé riachtanach go mbeadh sprioc ag an Roinn faoin reachtaíocht. Tá dualgais na Roinne faoin reachtaíocht leagtha amach ina Scéim Teanga, 2014-2017, a foilsíodh in 2014.
Tabhair faoi deara go ndearnadh suirbhé Teanga agus Cáilíochtaí le linn 2015 inar léiríodh go bhfuil inniúlacht sa Ghaeilge ag cúigear ball foirne.
Ní gnách leis an Roinn seirbhisí a chur ar fáil don phobal go díreach. Mar sin féin, sa chás go bhfuil gá le haistriúchán agus nach bhfuil ball foirne atá inniúil sa Ghaeilge ag Rannóga, nó nach bhfuil an duine sin ar fáil, cuirfidh ball foirne ainmnithe ó Rannóg eile seirbhís ar fáil nuair is gá.
Inniúlacht sa Ghaeilge sa Státseirbhís
Questions (32)
Peadar Tóibín
Question:32. D'fhiafraigh Deputy Peadar Tóibín den Aire Airgeadais an bhfuil beartas earcaíochta faoi leith i bhfeidhm chun aon chuóta maidir le líon daoine a bhfuil cumas feidhmeach acu sa Ghaeilge, má tá a leithéid ann, a bhaint amach. [30102/16]
View answerWritten answers
Ní mheasann an Roinn go bhfuil gá le poist áirithe a líonadh le cainteoirí Gaeilge toisc nach bhfuil sé riachtanach dúinn é a dhéanamh faoin reachtaíocht.
Ní gnách leis an Roinn seirbhisí a chur ar fáil don phobal go díreach. Mar sin féin, sa chás go bhfuil gá le haistriúchán agus nach bhfuil ball foirne atá inniúil sa Ghaeilge ag Rannóga, nó nach bhfuil an duine sin ar fáil, cuirfidh ball foirne ainmnithe ó Rannóg eile seirbhís ar fáil nuair is gá.
Tabhair faoi deara go ndearnadh suirbhé Teanga agus Cáilíochtaí le linn 2015 inar léiríodh go bhfuil inniúlacht sa Ghaeilge ag cúigear ball foirne. Is ionann sin agus thart ar 1.7% de líon foirne reatha na Roinne.
VAT Registration
Questions (33)
Róisín Shortall
Question:33. Deputy Róisín Shortall asked the Minister for Finance if he will consider altering the current services threshold for VAT registration in order that the significant step effect for small businesses whose turnover exceeds €37,500 is eradicated. [30122/16]
View answerWritten answers
VAT is governed by the EU VAT Directive (Council Directive 2006/112/EC), with which Irish VAT law must comply. The EU VAT Directive provides that VAT registration thresholds may only be raised by Member States to maintain their value in real terms, that is, they may only be increased in line with inflation. The VAT thresholds were increased to their current values on 1 May 2008. As the Central Statistics Office figures show the consumer price index is below the level it reached in 2008, it is not possible to increase the thresholds. I would point out, however, that Ireland's VAT registration threshold for small enterprises supplying services is the seventh highest in the EU while the goods threshold is the third highest.
Tax Code
Questions (34)
Seán Fleming
Question:34. Deputy Sean Fleming asked the Minister for Finance his views on whether the tax strategy group would benefit from having practitioners in the area and persons who work in the private sector as part of this group to bring a broader appreciation and understanding of the matter to such a group; if he will consider including expertise from outside the public service on this strategy group; and if he will make a statement on the matter. [30137/16]
View answerWritten answers
The Tax Strategy Group is in place since the early 1990's and is chaired by the Department of Finance with membership comprising senior officials and political advisers from a number of Civil Service Departments and Offices. Its terms of reference are as follows:
To examine and develop proposals for measures in the areas of taxation, PRSI and levies, for Budget and Finance Bill within agreed Government parameters for the overall Budget position and in the context of the framework of a medium term and longer term strategy set out in the Government's programme; and
To examine the strategic approach for a general social welfare package and to assess the interaction of income tax/PRSI/levies proposals with social welfare proposals including child income support, and in particular the impact of this interaction on the labour market and income distribution.
Papers on various options for tax policy changes are prepared annually for the Group by Department of Finance officials, Papers relating to PRSI and social welfare issues are also prepared for the Group by the Department of Social Protection. In previous years these Papers were published after the Budget. However, in line with the Government's commitment to Budgetary reform including greater engagement with the Oireachtas, the current Tax Strategy Group papers were published in July this year. This was well in advance of Budget 2017 and helped to facilitate informed discussion.
It is important to note that the Tax Strategy Group is not a decision-making body and the papers produced are a list of options and issues. They are only one part of an overall Budgetary and Finance Bill process which now includes the National Economic Dialogue, the Budget Oversight Committee and the provision of pre-Budget submissions and engagement with specific groups and individuals. Close to 300 such submissions were received in advance of Budget 2017. This provides opportunities for the views of external individuals and groups to be heard on general Budgetary and specific Finance Bill matters.
I would not consider it appropriate to broaden the membership of the Group to external practitioners. Where there are specific Finance Bill issues to be addressed there is and can be formal and informal engagement with officials in my Department and the Revenue Commissioners. There is also provision for engagement with the Revenue Commissioners on taxation issues through the TALC. These engagements are of course subject in certain cases to the requirements of lobbying legislation.