Written Answers Nos. 179-200
179. Deputy Niall Collins asked the Minister for Finance the actions he is taking to increase the rate of credit lending to businesses via the Strategic Banking Corporation of Ireland; the level of take up from the fund by businesses to date; and if he will make a statement on the matter. [31869/16]
View answerThe provision of low cost, flexible finance to SMEs is a priority for this Government. The Strategic Banking Corporation of Ireland (SBCI) was established in 2014 to increase the availability of funding to SMEs at a lower cost and on more flexible terms than has been available in recent times on the Irish market.
It is encouraging to note that to the end of June 2016, the SBCI has lent €347 million to 8,619 SMEs across Ireland. There is a broad geographical spread of the SMEs supported with approximately 85% of them based outside Dublin. The SMEs who received SBCI finance are from a variety economic sectors and employ over 43,000 people across the country.
The SBCI does not lend directly to SMEs and instead lends through partner financial institutions known as on-lenders. The SBCI has established relationships with 7 on-lending partners to date, and this provides significant geographical and sectoral reach for its products. The SBCI now supports a broad range of lending products for SMEs including term lending, leasing, contract hire, fleet finance and invoice discounting. The SBCI is currently in discussions with potential new on-lenders, and it is anticipated that SBCI funding will be available from additional on-lenders in the coming months.
The SBCI has access to over €1 billion of low cost funding that it will continue to make available to support Irish SMEs and the significant contribution they make to the Irish economy.
180. Deputy Dara Calleary asked the Minister for Finance the delegated responsibilities he has given to Ministers of State in his Department; when the order of delegated responsibility was signed; if he included his Ministers of State in direct discussions or meetings with the Minister for Public Expenditure and Reform as part of pre-budget discussions; if so, the dates of such meetings and the attendance at each meeting; if the Minister of State was not included the reason this was the position, in view of the designated responsibilities; and if he will make a statement on the matter. [31915/16]
View answerI am interpreting this question as referring to a Delegation of Ministerial Functions Order which is provided for under section 2 (1) of the Ministers and Secretaries (Amendment) (No. 2) Act 1977. This provides for the delegation to a Minister of State assigned to the Department of State of which the Minister of the Government has charge statutory powers and duties of such Minister of the Government under any particular Act or any particular statutory power or duty of such Minister of the Government.
In my Department, I as Minister for Finance have retained all statutory powers and duties pertaining to my ministerial role. The Minister of State, Eoghan Murphy, has been assigned certain functions and responsibilities which he is very ably carrying out on my behalf, however I have not delegated any statutory powers pursuant to the Ministers and Secretaries Act 1977. These include the important work to promote Ireland's financial services industry as part of the Government's IFS2020 International Financial Services Strategy and chairing the Cost of Insurance Working Group which is undertaking a review of the factors which are influencing the increasing cost of motor insurance. The appointment of Minister of State Murphy with specific responsibly for financial services emphasises the vitally important role International Financial Services play in the Irish economy, and that the implementation of IFS2020 will continue to be a priority.
In relation to pre-budgetary discussions with the Minister for Public Expenditure and Reform; I did not have any meetings with the Minister of Public Expenditure and Reform in relation to the 2017 Estimates, however, I had regular meetings with Minister Donohoe with regard to overall budgetary policy in the weeks preceding Budget 2017.
181. Deputy John Curran asked the Minister for Finance the progress made to date in establishing a mechanism which would facilitate funding being used by organisations such as the League of Credit Unions or Irish pension funds to provide social housing in an off-balance sheet manner; and if he will make a statement on the matter. [31925/16]
View answer186. Deputy Maurice Quinlivan asked the Minister for Finance the action his Department has taken to investigate with credit unions the way in which they can support social housing through the voluntary housing service, as promised in the programme for Government. [32104/16]
View answerI propose to take Questions Nos. 181 and 186 together.
The agreed Programme for a Partnership Government recognises the potential role that credit unions can play in housing finance and supports the efforts of the Registrar of Credit Unions at the Central Bank to gradually lift current lending restrictions as appropriate, including for housing. The Programme further provides that it will investigate with all stakeholders how credit unions can support the delivery of social housing.
The Department of Housing, Planning, Community and Local Government is the Department primarily responsible for the formulation and implementation of policy and the preparation of legislation in relation to housing.
The Registrar of Credit Unions at the Central Bank is the independent regulator of credit unions, and ultimately any decision around credit unions providing such funding would require regulatory approval prior to implementation. The Central Bank commenced a number of new regulations for credit unions on 1 January 2016. Prior to their commencement, following careful consideration, the Central Bank made a number of modifications, including to Regulation 25(2), which makes reference to the fact that the Central Bank may prescribe, in accordance with section 43 of the Credit Union Act 1997, further classes of investments for credit unions which may include investments in projects of a public nature. The effect of these modifications is that regulation 25(2) now provides that investment in projects of a public nature can include, but are not limited to, investments in social housing projects.
My Department has received a number of different proposals from the Credit Union Development Association (CUDA) and from the Irish League of Credit Unions (ILCU). Proposals from both representative bodies, in relation to the funding of social housing, are at various stages of development. Officials from both my Department and the Department of Housing, Planning, Community and Local Government have met with these bodies on a number of occasions to examine how credit unions can assist in the area of social housing. Officials from both Departments also met with the Central Bank on 21 April 2016 to provide information of a technical nature in relation to social housing funding arrangements. This was with a view to assisting the Central Bank in understanding how these arrangements operate, as it deals with issues arising from proposals put forward for credit union investment in social housing.
Ultimately, the funding mechanisms required will have to be put in place in the first instance by credit unions themselves, with the support of its members and with the agreement of the Central Bank, without negatively impacting on the General Government Balance, and keeping the funding 'off-balance sheet'. Both my Department and the Department of Housing, Planning, Community and Local Government will continue to contribute to this process by providing necessary technical advice and support.
The Government recognises the important role of credit unions as a volunteer co-operative movement in this country. The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to support a strengthened and growing credit union movement.
The Issue of Irish Pension Funds is a matter for my colleague Leo Varadkar TD Minister for Social Protection. His Department has informed me that in relation to the investment by trustees of pension schemes in certain classes of assets, there are requirements for trustees to satisfy under both the Institutions for Occupational Retirement Provision (IORP) Directive 2003/41/EC and the Pensions Act 1990. The Directive requires that the resources of a scheme must be invested in accordance with the 'prudent person' rule and in particular in accordance with certain investment rules. The Pensions Act provides also that trustees of a scheme must provide for the proper investment of the resources of the scheme in accordance with regulations and the rules of the scheme.
Investment of pension funds in housing assets is allowable if investments are made in accordance with the 'prudent person' rule and with other prescribed rules.
182. Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to first-time buyers who have saved house deposits in excess of 20% of the total value of the home they wish to purchase and are now unable to avail of the help to buy scheme as announced in Budget 2017; if his Department has investigated first time buyers in this situation; and if he will make a statement on the matter. [32001/16]
View answerThe Deputy will be aware that the Help to Buy Scheme announced on Budget day is intended to assist first-time buyers with obtaining the minimum deposit required under the Central Bank's macro prudential rules. The buyers that the Deputy refers to would already have sufficient cash resources to meet those requirements, except in cases where the operation of the loan to income aspect of the macro prudential rules mean that a larger deposit is necessary. The Deputy may be aware that in general, the latter provides that the total mortgage provided should not be greater than 3.5 times the income of the individual(s).
The scheme was initially designed to require a minimum loan to value ratio of 80% in order to qualify. However, the Central Bank of Ireland has indicated to my Department that a sizable number of first time buyers take out a mortgage with a loan to value ratio of less than 80% and that the minimum loan to value ratio set for the scheme could act to encourage such buyers to borrow more than necessary in order to avail of the scheme. Having considered the issue, I decided to reduce the minimum loan to value ratio to 70% and this change is reflected in the underpinning legislation in Section 8 of the Finance Bill as published.
183. Deputy Robert Troy asked the Minister for Finance his plans to introduce measures that would incentivise property owners to renovate unused residential units over retail premises to help with the housing shortage and encourage more persons to live in village and town centres; and if he will make a statement on the matter. [32038/16]
View answerThe Home Renovation Incentive (HRI) provides for an income tax credit for homeowners or landlords who carry out repair, renovation or improvement work on their property. The aim of the Incentive is to support tax compliant building contractors by moving activity out of the shadow economy into the legitimate economy. The Incentive was introduced in October 2013. It provides for tax relief by way of an income tax credit at 13.5% of qualifying expenditure. Qualifying work must cost a minimum of €5,000 including VAT at 13.5% rate. The maximum qualifying cost for the purpose of the incentive is €30,000 including VAT at 13.5%. This equates to a maximum tax credit of €4,050. The tax credit is payable over the two years following the year in which the work is paid for. I extended this incentive for a further two years, until the end of 2018, in the Budget.
The Living City Initiative is a scheme of property tax incentives designed to regenerate both historic buildings and other buildings in specified cities. It was enacted in the Finance Act 2013 and commenced on 5th May 2015. The scheme applies to certain special regeneration areas (SRAs) in the centres of Dublin, Cork, Limerick, Galway, Waterford and Kilkenny. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analysis. The relief applies to both residential and commercial refurbishment and conversion work that is carried out during the qualifying period. There are 2 types of tax relief available under the Living City Initiative - an owner-occupier residential element, and a retail/commercial element.
I announced a number of changes to the scheme in the Budget which aim to get the design of the Initiative right so that it can be more effective. Once this has been achieved, it will then be possible to consider how, or if, the Initiative could be extended to other locations. The Deputy will be aware of a further commitment in the Programme for Partnership Government, to examine the introduction of a similar scheme to the "Living City Initiative" to regenerate town centres and villages throughout Ireland. It is important that the underpinning scheme is made more effective, as until that has been achieved and evidenced, extension of eligibility for it to other towns would be largely meaningless.
184. Deputy Catherine Murphy asked the Minister for Finance the amount of tax relief claimed on medical expenses in respect of expenses incurred in each of the years 2012 to 2015 respectively; if he will provide a breakdown available in relation to tax relief claimed against charges for public services and private services respectively in public hospitals; and if he will make a statement on the matter. [32040/16]
View answerI am informed by Revenue that the cost of claims for tax relief on health expenses for the years 2012 to 2014, the most recent tax year for which data are currently available, is located on the Revenue Commissioners' webpage at http://www.revenue.ie/en/about/statistics/costs-expenditures.html. Updates will be published in due course.
I am also informed by Revenue that the breakdown sought by the Deputy is not available, as health expenses claims are not captured in a manner to distinguish tax relief claimed against charges for public services and private services respectively in public hospitals.
185. Deputy David Cullinane asked the Minister for Finance the criteria for eligibility for the mortgage interest relief scheme; if eligibility is to be changed in view of the decision to extend the scheme beyond 2017; and if he will make a statement on the matter. [32066/16]
View answerSection 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out between 1 January 2004 and 31 December 2012 and used by an individual for the purchase, repair, development or improvement of a principal private residence. Single individuals and married couples/civil partners that are first-time buyers, qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. In all other cases, the relief is restricted to ceilings of €3,000 and €6,000 respectively.
The following table details the rates of tax relief available in respect of qualifying loans.
|
- |
Tax Years 1 & 2 |
Tax Years 3, 4 & 5 |
Tax Years 6 & 7 * |
|
First time buyers (First 7 tax years of entitlement to tax relief on interest paid) |
Rate of tax relief = 25% |
Rate of tax relief = 22.5% |
Rate of tax relief = 20% |
|
Non-first time buyers |
Rate of tax relief = 15% for all relevant tax years |
* Note: After year 7, the non-first time buyers' rate applies
Notwithstanding the rates of tax relief listed above, Finance Act 2012 introduced a higher rate of 30% for individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008. This higher rate of relief applies for the tax years 2012 to 2017. The rationale for this higher rate was to help address the particular problems faced by those who bought homes at the height of the property boom between 2004 and 2008.
Further detailed information in relation to mortgage interest relief is available from Tax and Duty Manual 08.03.08 which is available on the Revenue website at http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-corporation-tax/part-08/08-03-08.pdf.
The gradual phasing-out of Mortgage Interest Relief has been under way since 2009. No new mortgages taken out since January 2013 have qualified for the relief, and the relief has expired for qualifying mortgages taken out prior to 2004. Relief for all remaining recipients is currently due to expire at the end of 2017. The Programme for Government contained a commitment to retain Mortgage Interest Relief beyond the current end date on a tapered basis, and in my Budget speech I confirmed my intention to extend the relief to 2020. The details of this extension will be set out in Budget 2018 next year, and the Deputy may also be aware that a review of policy considerations and potential costs of such an extension was contained in the Income Tax Reform Plan published by my Department in July this year.
187. Deputy Eamon Ryan asked the Minister for Finance the arrangements that exist regarding the collection of tax from Internet purchases made here from the UK; where the tax is collected; and if the Government monitors purchases and sales on the Internet. [32129/16]
View answerI presume that the Deputy is referring to distance selling in the EU where goods are sold over the internet on behalf of a supplier in one Member State to a customer, not registered for VAT, in another Member State. VAT is governed by the EU VAT Directive (Council Directive 2006/112/EC), with which Irish VAT law must comply. Irish legislation, in compliance with the Directive, provides for distance selling arrangements. Under these arrangements, sales to customers in other Member States are liable to VAT in the Member State of the supplier, provided that the threshold appropriate to the Member State of the customer is not breached. Where sales exceed the threshold in any particular Member State, the supplier must register and account for VAT in that Member State.
Where a UK-based supplier sells goods to customers in Ireland, UK VAT is chargeable on those sales. However, if the total of such supplies to Irish customers exceeds the Irish threshold of €35,000, then the UK supplier must register charge and account for Irish VAT on sales to Irish customers. If the threshold is not exceeded, the UK supplier can also opt to register and account for Irish VAT in this State on his or her distance sales.
Revenue's overall approach to managing compliance is to undertake a range of targeted interventions that are most appropriate for dealing with the specific risks presented in individual cases including internet sales. Their work is also supported and enhanced with appropriate technology, including their Risk Evaluation Analysis and Profiling (REAP) risk identification system and capture of data from multiple sources. One of these sources is trading information received from merchant acquirers which contains indicators of cases involved in internet trading.
Revenue's extensive range of measures and activities, designed to address shadow economy activity, includes exploiting the potential of new and emerging technology to identify tax evasion associated with internet trading and business activity. This includes an increased focus on the use of "e"-audit techniques, which use statistical software to analyse electronic data.
188. Deputy Barry Cowen asked the Minister for Finance if the Revenue Commissioners can provide the total number of properties registered by a company (details supplied) under the Taxes Consolidation Act 1997 which imposes an obligation on an agent who is in receipt of rent or other payments arising from a premises to provide the information; the status of compliance levels; and if he will make a statement on the matter. [32142/16]
View answer189. Deputy Barry Cowen asked the Minister for Finance if his Department has been in discussions with the Department of Housing, Planning, Community and Local Government in relation to the registration of short-term stay accommodation; and if he will make a statement on the matter. [32143/16]
View answer190. Deputy Barry Cowen asked the Minister for Finance the status of compliance levels with section 216A of the Taxes Consolidation Act 1997 in view of the use of short-term guest accommodation websites; and if he will make a statement on the matter. [32144/16]
View answerI propose to take Questions Nos. 188 to 190, inclusive, together.
Section 890 of the Taxes Consolidation Act 1997 requires any person, in receipt of income or other amounts belonging to another person from third parties, to submit a return of these details to the Revenue Commissioners in the prescribed form (Form 8-2). Details must be provided where the income or other amounts exceed €3,810 for the period of the return.
The Deputy will be aware that Revenue is precluded by virtue of taxpayer confidentiality from divulging any information relating to an individual or a company. Accordingly I am not in a position to provide the information sought by the Deputy on the company concerned.
Rent-a-Room relief is provided for in section 216A of the Taxes Consolidation Act 1997. Sums arising to an individual in respect of the letting of a room or rooms as residential accommodation in his or her home and from meals or other services supplied in connection with the letting are exempt from income tax, USC and PRSI where they are below the annual limit for the tax year in which the sums arise and certain other conditions are satisfied. The Rent-a Room relief is not available in respect of short-term guest accommodation.
I am advised by Revenue that in line with its overall approach to managing taxpayer compliance, it undertakes risk targeted interventions appropriate to the specific risks presented in individual cases this includes periodic programmes that examine the validity of claims to tax credits and reliefs. Where, following a compliance intervention, it is found that a person had made an incorrect claim for a relief, including the Rent-a-Room relief, Revenue will take appropriate action to collect the tax due and interest on late payment and penalties, as appropriate. I am advised by Revenue that their data systems do not facilitate the extraction of data relating specifically to compliance interventions on the Rent-a-Room relief.
Finally, it is unclear what the Deputy refers to by 'registration of short term stay accommodation'. However, I would point out that tourist accommodation is primarily, a matter for the Department of Transport, Tourism and Sport, as Fáilte Ireland has specific powers and functions in relation to the registration, approval and grading of tourist accommodation.
191. Deputy Joan Burton asked the Minister for Education and Skills the names of the geographic areas in Dublin west for the purposes of school planning; and if he will provide a map illustrating the boundaries of the planning areas in Dublin west. [31458/16]
View answerThe information sought by the Deputy is available at the following link:
192. Deputy Niamh Smyth asked the Minister for Education and Skills the reason oral Irish tapes are not made available to students and their parents during the State examinations appeals process; and if he will make a statement on the matter. [31462/16]
View answerThe State Examinations Commission has statutory responsibility for operational matters relating to the certificate examinations.
In view of this I have forwarded your query to the State Examinations Commission for direct reply to you.
193. Deputy Brendan Griffin asked the Minister for Education and Skills if Solas will be recruiting training staff for joinery and carpentry trades; and if he will make a statement on the matter. [31468/16]
View answerEducation and Training Boards and Institutes of Technology deliver off-the-job training for apprenticeship programmes and they are responsible for the recruitment of apprenticeship instructing staff.
However, my Department works closely with both SOLAS and the Higher Education Authority in monitoring the overall staffing requirements in institutions to deliver and support apprenticeship programmes and has recently approved additional apprenticeship instructor posts in response to the growth in craft apprentice registrations.
194. Deputy Stephen S. Donnelly asked the Minister for Education and Skills if a timeline for construction has been put in place with regard to the proposed new location of a school (details supplied); the timeline in this regard; and if he will make a statement on the matter. [31484/16]
View answer195. Deputy Stephen S. Donnelly asked the Minister for Education and Skills if the new site of a school (details supplied) will begin construction in 2018; if his Department foresees any barriers to this construction beginning in 2018; if these barriers exist, the plans in place to mitigate these barriers; and if he will make a statement on the matter. [31485/16]
View answerI propose to take Questions Nos. 194 and 195 together.
The building project for the school to which the Deputy refers is included in my Department's 6 Year Construction Programme announced last November. It is envisaged that this project will proceed to tender/construction in 2018, as outlined in the Programme.
A site acquisition process in respect of this school building project is underway and is currently at conveyancing stage.
196. Deputy Michael Healy-Rae asked the Minister for Education and Skills the status of an appeal in respect of a school (details supplied); and if he will make a statement on the matter. [31491/16]
View answerDepartment of Education and Skills Circular 0007/2016 sets out the criteria for the allocation of teaching posts to primary schools for the 2016/2017 school year. The circular includes the provision whereby schools experiencing rapid increases in enrolment can apply for additional permanent mainstream posts on developing grounds, using projected enrolment for the following September, in this case September 2016.
The school referred to by the Deputy was approved for 1 permanent developing school post, subject to achieving projected enrolments on 30th September 2016. Actual pupil numbers on that date did not meet the required enrolment and so the school were informed that the post was to be suppressed on 28th October 2016.
The school submitted an appeal to the October meeting of the Primary Staffing Appeals Board to retain the post for the school year on the basis of exceptional accommodation difficulties. The Appeals Board has upheld the appeal and sanctioned the post for the remainder of the school year.
The school has been notified of this decision.
197. Deputy Thomas Byrne asked the Minister for Education and Skills if his Department has developed a contingency plan whereby parents of school children affected by the ASTI union ban on substitution and supervision will be asked to volunteer to provide cover; the details of the plan; and if these parents will be required to undergo Garda vetting. [31511/16]
View answerMy Department and the school management bodies have agreed contingency arrangements which involve the recruitment of external supervisors and which are intended to support any schools that may be in a position to remain open during the period when ASTI teachers withdraw from S&S duties. The employment of external supervisors may enable some schools to remain open but would present significant logistical and practical difficulties.
ASTI's co-operation with the contingency arrangements are required if they are to operate effectively. Prior to the ballot results, my Department formally communicated its co-operation requirements to ASTI and asked that these be considered. However, ASTI is refusing to cooperate with the contingency plans. Firstly, ASTI rejected my request to provide an exemption for principals who are members of ASTI to allow them to co-operate with the contingency arrangements. The co-operation of school principals is crucial to any contingency arrangements. Secondly, ASTI rejected my request to provide sufficient notice to allow schools to recruit supervisors by providing only three weeks from the announcement of the ballot results until the date that ASTI teachers withdraw from S&S duties.
The contingency plan involves schools recruiting external personnel to supervise pupils on the school premises, in classrooms and the school yard. Payment will be a minimum of €38.36 per day (based on two hours supervision minimum). Any further supervision above these two hours will be paid at a rate of €19.18 per additional hour. Applicants being considered for appointment will be subject to vetting by the National Vetting Bureau of An Garda Síochána.
Advertisement for the recruitment of supervisors began last week. However, given the refusal to cooperate with the contingency arrangements on ASTI's part, widespread school closure is expected from 7 November onwards.
198. Deputy Joan Burton asked the Minister for Education and Skills the total cost of the purchase of Roslyn Park rehabilitation centre for a new school (details supplied); the likely date the school will open; and if he will make a statement on the matter. [31522/16]
View answer199. Deputy Joan Burton asked the Minister for Education and Skills if the newly purchased site for a school (details supplied) in Dublin 4 is of sufficient size for the co-location of a future second level school; and if he will make a statement on the matter. [31523/16]
View answerI propose to take Questions Nos. 198 and 199 together.
The Deputy will be aware that my Department recently completed the acquisition of the Roslyn Park property in Sandymount. For reasons of commercial sensitivity I am not in a position to disclose the cost of this acquisition.
In the context of the finalisation of this acquisition, my Department wrote to the patron body of the school to which she refers, informing it that it is intended to provide permanent accommodation for that school on the Roslyn Park site.
It is also intended to provide accommodation for a new post primary school on this site. A technical feasibility study conducted by my Department indicated the suitability of the property to accommodate both schools.
Nonetheless, the development of the site will be subject to planning permission being obtained. Officials in my Department have engaged with officials in Dublin City Council in this regard and will continue to work closely with them throughout the process.
200. Deputy Niall Collins asked the Minister for Education and Skills the status of a school building project (details supplied); if a contract has been signed; and if he will make a statement on the matter. [31534/16]
View answerThe major school building project to which the Deputy refers is at an advanced stage of architectural planning - Stage 2(b). All statutory approvals have been secured.
However, following the appointment of a replacement Quantity Surveyor, the Design Team in association with the newly appointed Quantity Surveyor prepared a revised Bill of Quantities which has just been received by my Department. My Department will revert to the school with regard to the further progression of the project following consideration of this report.
This project has not yet advanced to a stage where a contract can be signed.
