Written Answers Nos. 116 to 135
117. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding locum doctors who come to Ireland to cover general practitioners' holiday leave; and if he will make a statement on the matter. [33597/16]
View answerI would refer the Deputy to my reply to Question 31481/16 regarding the legislative position concerning VAT exemptions and the services of locum doctors.
In the specific case mentioned by the Deputy, I am advised by Revenue that the service concerned is the supply of medical professionals to third parties and is therefore within the charge to VAT and taxable at the standard rate. I am advised by Revenue that the company is currently in active discussions with them on the matter.
118. Deputy Michael Collins asked the Minister for Finance if he will extend the incentives for first-time buyers announced in budget 2017 to apply to both the purchase of new and second-hand houses; and if he will make a statement on the matter. [33598/16]
View answer131. Deputy Willie Penrose asked the Minister for Finance the reason first time house buyers as recently announced in the budget are confined to new houses when there are many first-time buyers currently buying second-hand houses; and if he will make a statement on the matter. [33860/16]
View answerI propose to take Questions Nos. 118 and 131 together.
The Help to Buy scheme is being introduced as one of the many actions to develop a fully functioning housing market that responds adequately to the needs of our citizens set out in 'Rebuilding Ireland - The Action Plan for Housing and Homelessness' which was launched last July.
One of the policy aims of the Help to Buy scheme is to help increase the supply of housing, by increasing first-time buyers' capacity to meet the requirements of the Central Bank macro-prudential rules and thus placing more individuals in the position of being able to afford a new home. It is hoped that turning notional demand into real demand will generate the supply response, as developers who may have been struggling to raise funding to build houses will be in a position to point to this increased real demand in negotiations with lenders.
Extending the scheme to apply to second hand properties would have no impact on increasing the supply of new homes being built and thus could not contribute to increased supply. As a result, the rebate will only be available in respect of newly built property.
119. Deputy Peter Burke asked the Minister for Finance if deposit interest retention tax deducted at source can be refunded on foot of charitable donations in line with other tax paid subsequent to the 2013 tax year; and if he will make a statement on the matter. [33599/16]
View answerThe scheme for tax relief on donations to eligible charities and other approved bodies is provided for in Section 848A of the Taxes Consolidation Act (TCA) 1997.
Following consultation and engagement with the charities sector, the scheme was amended in the 2013 Finance Act in order to reduce administrative costs for donors, charities and the Revenue Commissioners. Under the scheme all individual donations, whether made by a PAYE or self employed taxpayer, are treated similarly. The donation amount is treated as a balance after payment of tax at a notional tax rate of 31% and an amount equal to the notional amount of tax is paid directly to the relevant charity or approved body. This amount is treated as a refund of tax paid by the taxpayer in question and is subject to the taxpayer having paid sufficient tax to meet the refund amount.
The legislation specifically excludes Deposit Interest Retention Tax in computing the amount of tax paid by a donor for these purposes.
120. Deputy Clare Daly asked the Minister for Finance if a credit union (details supplied) will be wound up; if so, the outcome for the current members; and if he will make a statement on the matter. [33604/16]
View answerMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank of Ireland is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
The Central Bank of Ireland has informed me that it made an application on 2 November 2016 to the High Court to have joint provisional liquidators appointed to Rush Credit Union Limited (Rush Credit Union). Jim Luby and Tom Rogers of McStay Luby were appointed as joint provisional liquidators on that date by the President of the High Court, Mr Justice Peter Kelly. The full application will be heard on 21 November, when the Central Bank will seek the winding up of Rush Credit Union. The appointment of the joint provisional liquidators to Rush Credit Union has no impact on members' savings in any other credit union.
The Deposit Guarantee Scheme (DGS) provides protection up to €100,000 per depositor per financial institution. Following the appointment of the joint provisional liquidators, the DGS has been activated. Payments will automatically issue to the address held on file by the credit union. Members do not have to contact the credit union or the Central Bank, as compensation payments will automatically issue by cheque to all duly verified depositors. The DGS will make compensation payments as early as possible within the statutory deadline of 20 working days to duly verified depositors.
The Central Bank is conscious that there is a demand for the services of a credit union in the local area and will examine what arrangements can be put in place to provide specific credit union services in the community in the future. The Central Bank is keen that credit union services are available to the people of Rush and Lusk. In some cases members may currently be able to avail of services in another credit union in the area as the common bond may extend into their locality or through their place of work.
The Central Bank has further informed me that it remains fully supportive of the credit union sector in Ireland and is committed to the continued development of a strong and sustainable sector that meets members' changing needs and protects their savings.
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 continue to support a strengthened and growing credit union movement.
121. Deputy Pat Casey asked the Minister for Finance the VAT revenue gain from the sale of new houses for the past ten years in tabular form; and if he will make a statement on the matter. [33643/16]
View answerI am informed by the Revenue Commissioners that an estimate of the VAT revenue gain from the sale of new houses from the past 10 years is provided in tabular form:
|
Year |
Estimated VAT Yield New Housing (€m) |
|
2006 |
2,727 |
|
2007 |
2,487 |
|
2008 |
1,289 |
|
2009 |
632 |
|
2010 |
333 |
|
2011 |
159 |
|
2012 |
403 |
|
2013 |
405 |
|
2014 |
417 |
|
2015 |
403 |
|
2016 (provisional) |
563 |
It should be noted that these figures are subject to a large degree of estimation. I am informed by Revenue that the information furnished on VAT returns does not require the yield from a particular activity or product to be identified. In these circumstances the amount of VAT revenue collected in respect of the sale of new houses only cannot be precisely identified from overall VAT receipts.
122. Deputy Brendan Smith asked the Minister for Finance the measures he proposes to implement to assist the retail sector to retain business due to the potential loss of trade to Northern Ireland due to the reduction in the value of sterling; if his attention has been drawn to the widespread concerns of the retail sector, particularly in the Border region; and if he will make a statement on the matter. [33644/16]
View answerI am aware, as is my Department, of the impact of recent exchange rate developments on the retail sector, particularly in the border region.
Since the UK's vote on the 23rd June the euro has appreciated by over 15 per cent against sterling and is currently trading at around €1 = £0.89 with adverse implications for the Irish economy in general, most notably for Irish exports to the UK and also for areas/sectors sensitive to cross border trade.
From a macroeconomic perspective, the best way to deal with such a shock is through prudent management of the public finances. That is what this Government is doing. This will help enhance the resilience of the Irish economy.
At a more micro-economic level, Budget 2017 contains several measures designed to ensure that firms in Ireland - especially those in the SME sector - are prepared for a potentially more difficult trading environment. This includes tailoring the wide range of State supports currently available such as low cost credit and increased credit supply from the Strategic Banking Corporation of Ireland (SBCI); funding for growth and efficiency from Enterprise Ireland; and financing for micro enterprises from Microfinance Ireland so that they provide effective support to SMEs affected by challenges arising from the UK referendum. Furthermore, there are a number of additional supports for SME credit coming on stream, including a €150 million agri-loan fund; and a revamped Credit Guarantee Scheme. An SME-focused, share-based incentive scheme, is also planned to be introduced in Budget 2018.
Further, Budget 2017 retained the reduced 9 per cent VAT rate for the hospitality sector a measure sought by Retail Ireland in their pre-budget submission.
It is crucial to maintain competitiveness and in particular in those areas in which we can influence, as clearly we cannot affect exchange rate developments. It is also important to stress that the recent depreciation of sterling is likely to increase UK consumer prices in the near term as increases in import prices give rise to additional inflationary pressures. Conversely, there are some signs that recent exchange rate developments are benefitting consumer prices in Ireland which have fallen by almost 1 per cent since the referendum. This will help mitigate some of the negative impact on the retail sector in Ireland from the depreciation in sterling.
123. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding motor insurance costs; and if he will make a statement on the matter. [33647/16]
View answerAs 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.
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 a 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, medium-term and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The initial focus of the Working Group is the issue of rising motor insurance premiums, which includes the difficulties facing the taxi sector.
At the end of October 2016, the Working Group provided me with an initial set of emerging recommendations. From November to December, the Working Group will finalise the Report and develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.
Finally, it may be of interest to your constituent that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. In the event that a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820, quoting the Declined Cases Agreement.
124. Deputy Catherine Connolly asked the Minister for Finance the position in relation to the EU's general court ruling that the Government had provided illegal state aid to a refinery (details supplied) in the amount of €10 million when the refinery was owned by a company; if the Government and-or the company has appealed this ruling; if so, if they have received a date for the hearing of the appeal; if the Government has placed the €10 million and-or the required sum into an escrow account; the legal costs incurred by the State in all hearings to date in this matter; and if he will make a statement on the matter. [33648/16]
View answerThe EU Commission found that the exemption from excise duty granted by Ireland to a company in respect of heavy fuel oils used in the production of alumina constituted State aid. As a result a total of some €14.5m "state aid" has been recovered from the company. These monies are being held in a deposit account.
The judgement of 22 April 2016 is the most recent in a long running legal battle around this issue. Both the company and the Government have appealed the decision of 22 April 2016. A hearing date has not yet been fixed for this appeal.
In relation to legal costs incurred, I should point out that the Chief State Solicitors Office does not charge Government Departments for its services. However, I have been informed that the amount paid for counsel and travel and subsistence totals €46,299.97. This is in respect of the three General Court cases and the two cases before the Court of Justice.
125. Deputy Paul Murphy asked the Minister for Finance if he or his Department has considered tax exemptions, VRT, motor tax or other for a charity (details supplied); and if he will make a statement on the matter. [33709/16]
View answerExemptions and reliefs from Vehicle Registration Tax are provided for in sections 134 and 135 of the Finance Act 1992 (as amended). No provision is made for motorcycles such as those in the details provided.
In relation to VAT, charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive (Council Directive 2006/112/EC) with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot normally recover VAT incurred on goods and services that they purchase. This matter was examined last year by a Working Group comprised of representatives from the Department of Finance, the Revenue Commissioners and the Irish Charities Tax Reform (ICTR) Group, following representations made by the ICTR Group. The report was published in October last year and is available on my Department's website. In my Budget Day speech I have asked my officials to engage again with this Working Group with a view to reviewing the options available to provide compensation for charities as regards the burden of VAT.
126. Deputy Brendan Howlin asked the Minister for Finance the process which will be followed in appointing the chairperson of the Irish Fiscal Advisory Council; the date on which this position fell vacant; the date on which he expects the appointment to be made; and if he will make a statement on the matter. [33769/16]
View answerProfessor John McHale has informed my Department that he is not putting himself forward for reappointment for a further term as a member of the Fiscal Council when his current term of office expires on 31 December 2016. As Professor McHale is also the current chairperson of the Council, this will also create a vacancy for the position of chairperson.
In order to fill the vacancy on the Council for a member, and in line with Government policy for appointments to State Boards, a recruitment competition is being managed by the Public Appointments Service. The deadline for applications is 8 November. Following consideration of the applications by a group convened by the Public Appointments Service, a list of suitably qualified candidates will be submitted to me and I will appoint a new Council member to take office with effect from 1 January 2017, for a term of four years.
With regard to the chairperson, under the Fiscal Responsibility Act 2012, the chairperson of the Council is appointed by me from the Council membership. Accordingly, following the current recruitment process, when the full complement of Council members for 2017 is known, I will appoint one of the members as chairperson.
127. Deputy Thomas P. Broughan asked the Minister for Finance if he will report on Ireland's EU financial contribution from 2010 to 2016 and the reverse annual amount of EU funding for Irish projects over those years; when and the amount by which Ireland became a net contributor to the EU budget; and if he will make a statement on the matter. [33771/16]
View answerAs outlined in the following table, Ireland became a net contributor to the EU budget in 2014. EU Budget payments and public sector receipt data are published annually by the Department of Finance in the Budget Statistics bulletin. The public sector receipt measure captures funds under 'shared management' between national and EU authorities. In addition, the EU also pays some additional receipts directly to private beneficiaries under 'centralised direct management', most notably under the EU research funding programme.
For ease of reference, Ireland's receipts from and contributions to the EU Budget for the years 2010 to 2015 are set out in the following table.
|
YEAR |
Public Sector Receipts €m |
Direct Management Receipts* €m |
Total receipts |
Payments to EU Budget €m |
Net Receipts €m |
|
2010 |
1885.3 |
80.4 |
1965.7 |
1352.4 |
613.3 |
|
2011 |
1950.2 |
80.2 |
2030.4 |
1349.7 |
680.7 |
|
2012 |
1837.7 |
108.8 |
1946.5 |
1393.2 |
553.3 |
|
2013 |
1672.9 |
113.0 |
1785.9 |
1726.2 |
59.7 |
|
2014 |
1419.7 |
83.9 |
1503.6 |
1685.5 |
-181.9 |
|
2015 |
1770.9 (p) |
147.7 |
1918.6 (p) |
1952.1 |
-33.5 (p) |
Source: Department of Finance
(p) provisional
* - Direct Management - funds which are awarded and spent directly by the Commission. These are primarily research receipts.
For 2016 my Department currently forecasts that our contribution to the EU budget will be €2,145m. In relation to receipts for 2016, we will only have a final outturn in the middle of next year when the European Commission publishes its financial report for 2016.
128. Deputy Thomas P. Broughan asked the Minister for Finance if his Department has estimated the likely impact of Brexit on Ireland's annual financial contribution to the EU budget; and if he will make a statement on the matter. [33772/16]
View answerUntil it formally withdraws from the Union, the UK remains a full EU Member, with all of its existing rights and obligations including in relation to the EU budget. Brexit is likely to involve complex discussion on the Multiannual Financial Framework, particularly as the UK is an important net contributor to the EU Budget. Therefore, Brexit will have a significant impact on EU Budget funding and expenditure and may need to be mitigated by either increased contributions from other Member States, reductions in EU funding programmes, or a combination of both.
While my Department has undertaken some broad modelling work to estimate the potential impact of Brexit on our EU budget calculations, this analysis will need to be developed in more detail in the coming period, when the parameters of the budget negotiations are better defined. In particular, a key point will be getting agreement amongst the EU27 on a common approach to the future of the EU Budget.
129. Deputy Seamus Healy asked the Minister for Finance his plans to exempt rescue and safety equipment purchased by voluntary organisations, such as Carrick-on-Suir River Rescue, from the payment of VAT; and if he will make a statement on the matter. [33796/16]
View answerThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. EU VAT exemptions are set out in Articles 132 and 135 of the VAT Directive (Council Directive 2006/112/EC) and do not cater for the supply of rescue and safety equipment. Therefore, it is not possible to exempt the equipment mentioned by the Deputy.
In 2013, I extended the VAT (Refund of Tax) (Rescue boats and related equipment) Order S.I. 249 of 2013 to enable VAT to be repaid in respect of small rescue craft, ancillary equipment and special boat buildings to qualifying inland water rescue groups who provide a sufficient standard of inland waterways rescue. Previously, VAT refunds were allowable only in respect of qualifying sea rescue organisations and the Irish Water Safety Association. In order to be entitled to a refund of VAT, it is incumbent on the claimant to demonstrate that it fulfils the conditions laid down in the refund order.
Furthermore, the Programme for Partnership Government recognises the difficulties faced by community groups and charities in relation to VAT rates on certain products and commits to raising the issue at EU level. The European Commission's Action Plan on VAT was adopted on 7th April 2016 and contains a proposal to look at VAT rate policy across the EU in 2017. The Action Plan's proposal on rates may offer Member States more flexibility in the future in determining VAT rates applicable to goods and services. However, the Deputy will be aware that any proposed changes to the current EU VAT Directive would require unanimous agreement from all Member States.
130. Deputy James Browne asked the Minister for Finance if he will arrange to have the tax affairs of a person (details supplied) dealt with in the local tax office in order to allow the person to claim an old age pension. [33859/16]
View answerI am advised by Revenue that there has been ongoing engagement with the person concerned and his agent as regards the measures that are needed in order for the person to bring his tax affairs up to-date. The resolution of these matters will facilitate the person in claiming an old age pension. Revenue will make further contact with the person concerned with a view to progressing the matter to a satisfactory resolution.
132. Deputy David Cullinane asked the Minister for Education and Skills the starting salary and allowances in place for teachers as and from 1 January 2010; and if he will make a statement on the matter. [33750/16]
View answer133. Deputy David Cullinane asked the Minister for Education and Skills the starting salary and allowances in place for teachers as and from 1 November 2016; and if he will make a statement on the matter. [33751/16]
View answerI propose to take Questions Nos. 132 and 133 together.
The typical starting pay for a primary teacher in 2010 was €36,890, comprising of basic salary of €31,972 and an honours degree allowance of €4,918. Such teachers may also have been entitled to incremental credit for other service. The teacher could also have received an additional payment of €1,769 per annum if they had opted in to the Supervision and Substitution scheme.
The typical starting pay for a post-primary teacher in 2010 teacher was €39,195, comprising of basic salary of €33,041 and an honours degree allowance of €4,918 and an allowance for the Higher Diploma in Education of €1,236. Such teachers may also have been entitled to incremental credit for other service. The teacher could also have received an additional payment of €1,769 per annum if they had opted in to the Supervision and Substitution scheme.
Where a teacher commences employment at either primary and post-primary levels on 1 November 2016, those teachers who are covered by the Lansdowne Road Agreement start on a salary of €31,805 as the first moiety of the Supervision and Substitution payment has been included in the pay scale for such teachers. Teachers who are outside the Lansdowne Road Agreement have not had that moiety included in the pay scale and therefore have a starting salary of €31,009.
The typical starting pay from January 2018 onwards for a primary and post-primary teacher who is covered by the Lansdowne Road Agreement will be €35,602 due to the recent agreement with TUI and INTO in the context of the Lansdowne Road Agreement.
The agreement substantially addresses the current difference in pay between those recruited since 2011 and those recruited since 2012. It will result in increases of up to €2,000 per year for new teachers at the start of their careers. The increase varies depending on the point of scale that a teacher is on - the highest increase being €7,700 and the increase at the maximum of the scale being €4,300. It is estimated that over a teacher’s career the value of these increases will be €135,000.
The revised salary arrangement will be implemented in two phases on 1 January 2017 and 1 January 2018.
When other Lansdowne Road increases are also factored in, there will be a 15% increase in the starting pay of new entrant teachers between 31 August 2016 and 1 January 2018 (from €31,009 to €35,602). For an individual TUI/INTO member who started teaching in September 2015, they will see a 22% increase in their pay (including increment) between 31 August 2016 and 1 January 2018 (from €31,009 to €37,723). In terms of career earnings, this deal in addition to measures already agreed will restore approximately three quarters of the reductions for new entrants put in place since 2011.
The full text of the agreement is available on my Department’s website at the following address: http://www.education.ie/en/Education-Staff/Information/Public-Service-Stability-Agreement-Haddington-Road/New-Entrant-Pay-Issue-and-Related-Commitments.pdf
The Government has also committed to establishing a Public Service Pay Commission to examine pay levels across the public service, including entry levels of pay. The Government also supports the gradual, negotiated repeal of the Financial Emergency Measures in the Public Interest Acts, having due regard to the priority to improve public services and in recognition of the essential role played by public servants.
134. Deputy Brendan Smith asked the Minister for Education and Skills if national lottery funding is available at present through his Department to support the work of community groups; if so, if there are specific programmes eligible for grant assistance; the details of same; and if he will make a statement on the matter. [33270/16]
View answerThere are no programmes in my Department which make National Lottery funding available to support the work of community groups.
135. Deputy Mick Barry asked the Minister for Education and Skills if his Department will address the accessibility issues in a school (details supplied) raised by a student who may become wheelchair bound. [33286/16]
View answerI wish to advise the Deputy that my Department has been in contact with the College Authority, referred to. I understand that the College Authority, concerned, intends liaising with the person in question in the context of the matters raised.
