Joe Carey
Question:125. Deputy Joe Carey asked the Minister for Finance his views on correspondence (details supplied) regarding pension legislation; and if he will make a statement on the matter. [35533/16]
View answerPensions Legislation
Questions (125)
Written answers
I am informed by Revenue that an Approved Retirement Fund (ARF) is a post-retirement investment product into which an individual may opt to transfer their pension fund on retirement as an alternative to annuity purchase. The beneficial ownership of the assets in an ARF vests in the individual, and the ARF structure allows those personal assets to be segregated from the individual's other personal assets in order that the ARF taxation treatment can apply. In that regard, section 784A of the Taxes Consolidation Act (TCA) 1997, provides that income or gains arising while the funds are invested in an ARF are exempt from tax. Withdrawals from an ARF are generally taxable at the owner's marginal rate of tax. ARFs are managed by Qualifying Fund Managers, mainly insurance companies, banks and stockbrokers.
Under the Double Taxation Treaty between Ireland and the United Kingdom, in common with double taxation agreements generally, a taxing right in respect of income and capital gains from immovable property is given to the Contracting State (Ireland or the UK as appropriate) in which the property is situated. As there is no specific exemption for ARFs in the treaty, ARFs with investments in UK property are liable to tax in the UK on the income and gains arising from such property. However, Article 14A of the treaty provides an exemption in relation to income and gains derived by a resident of one Contracting State from immovable property situated in the other Contracting State in certain circumstances. This arises where the competent authority of the first State certifies that the income and gains are tax exempt in that State "by reason of the provisions in the laws of that State which afford relief from taxation to charities and superannuation schemes, as such, or to insurance companies in respect of their pension business ". An ARF must, therefore, be either a superannuation scheme or pension business of an insurance company in order to qualify for the exemption under Article 14A.
As outlined above, ARFs are not superannuation schemes and, therefore, it is only where they come within the scope of "insurance companies in respect of their pension business" that they are covered by Article 14A. I am advised by Revenue that subsection (5) of section 784A of the TCA 1997 specifically extends the scope of references to the pension business of insurance companies to include ARFs provided by such companies. However, it should be noted that such ARFs are exempt under Article 14A not because they are ARFs, but because they form part of the pension business of such companies. I understand from Revenue that HM Revenue and Customs considered whether they were in a position to extend the benefits of Article 14A to all ARFs, but concluded that as ARFs are not superannuation schemes, per se, they are outside the scope of the treaty other than where they fall within the "insurance company" element referred to above.
As regards Personal Retirement Savings Accounts (PRSAs), the Finance Bill 2016 contains provisions to stop PRSAs being used for tax avoidance purposes. The avoidance concerned involved benefits never being taken from a PRSA so that it never "vests" with the result that certain taxes never applied and a more favourable tax treatment was afforded the PRSA assets on the death of the beneficial owner. To counter this avoidance, the Finance Bill provides that where PRSA benefits have not commenced by the date of the owner's 75th birthday (as envisaged by the TCA 1997), such benefits are deemed to commence (i.e. the PRSA is deemed to vest) on that date.
Disabled Drivers Grant Eligibility
Questions (126)
John Curran
Question:126. Deputy John Curran asked the Minister for Finance if he will review the criteria to obtain a primary medical certificate regarding Disabled Drivers and Passengers (Tax Concession) Regulations 1994; if his attention has been drawn to the fact that the Ombudsman has expressed concern that the scheme, as currently framed, is overly rigid and inflexible and may be causing inequity (details supplied); and if he will make a statement on the matter. [35556/16]
View answerWritten answers
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the repayment of excise on fuel used by members of the Scheme, the Scheme represented a cost of €50.3 million to the Exchequer in 2015, an increase from €48.6 million in 2014. These figures do not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I am aware that the Ombudsman has made comments regarding the eligibility criteria of the Disabled Driver and Disabled Passengers Scheme. The Ombudsman stated that, in his opinion, the criteria were narrowly focused and prescriptive. The Scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
Help-To-Buy Scheme Eligibility
Questions (127)
Niamh Smyth
Question:127. Deputy Niamh Smyth asked the Minister for Finance if he will clarify the position of the first-time buyer's scheme when the building of a home began before 19 July 2016, but still remains a year off its completion, if it is eligible under the scheme announced in budget 2017; and if he will make a statement on the matter. [35615/16]
View answerWritten answers
The Help to Buy scheme, as published in the Finance Bill, requires that in order for a first-time buyer to be eligible for the scheme, he or she must have signed a contract to purchase a new residence, or in the case of self-builds, drawn down the first tranche of a mortgage, on or after 19 July 2016. The date of 19 July was chosen as it was the date of the launch of 'Rebuilding Ireland: Action Plan for Housing and Homelessness', which included a commitment to introduce such a scheme in the Budget. The backdating of the scheme to that date was to avoid any potential interruption in the housing market after that date pending the emergence of the details of the scheme.
There are currently no plans to extend eligibility for the scheme further back than the date of its initial announcement. To do so would consist entirely of deadweight, as individuals who signed contracts to purchase new homes or who drew down the first tranche of their mortgage in respect of a self-build home, in advance of the original announcement did not need the assistance of the State to fund the required deposit. Such individuals made their purchasing decisions on the basis of the information available to them at the time of purchase, and could not have expected a subsequently introduced tax relief to be available to them.
It is unclear from the Deputy's question as to the precise details of the case concerned. Depending on the particular circumstances of the case in question, the relevant individuals may be in a position to qualify for the scheme.
Banking Sector Investigations
Questions (128)
Michael McGrath
Question:128. Deputy Michael McGrath asked the Minister for Finance his views on whether a probe needs to take place here into a bank's (details supplied) handling of small and medium-sized enterprise debtor customers similar to the probe in the UK into its parent company (details supplied) and SME debtors being moved into its global restructuring group; and if he will make a statement on the matter. [35660/16]
View answerWritten answers
The Tomlinson report dealt with the lending practices of UK banks to Small and Medium Sized Enterprises (SMEs) and it alleged that a division of Royal Bank of Scotland (RBS), the Global Restructuring Group, was guilty of "systematic and institutional behaviour" in artificially distressing otherwise viable businesses. Following this report, the UK's Financial Conduct Authority (FCA) appointed Promontory Financial Group to further investigate these allegations. Promontory's work along with the involvement of the FCA, led RBS last week to announce redress for certain SME customers.
As I have previously answered, Ulster Bank Ireland Limited undertook an independent review into the relevance of these allegations to its corresponding division, namely the Global Restructuring Group Ireland (GRGI). On the 19th December 2014, Ulster Bank published the findings of the independent review by Mahon Hayes Curran into practices at GRGI. The investigation found no evidence to support the allegations and suggested that GRGI's driving policy was to manage its customers through the cycle, supporting them where possible to return them to viability.
The Central Bank is the statutory body with responsibility for the investigation of any such allegations in an Irish context and I consider this a matter for the Central Bank. I am confident that legislative changes since the financial crisis have equipped the Central Bank with an array of investigative, regulatory and enforcement powers to ensure that regulated financial service providers adhere to the requirements of financial services legislation. These changes include significantly enhanced powers for the Central Bank to gather information under the Central Bank (Supervision and Enforcement) Act 2013 which broadened the Banks' information gathering and authorised officer powers. It is evident that the Central Bank is properly undertaking its enforcement role by the recent sizeable settlements in enforcement cases.
In addition to this enforcement role, the Deputy may be aware that the Central Bank is proactively regulating the financial system and has issued regulations aimed at protecting SMEs when dealing with regulated and unregulated firms as set out below. These strengthened regulations include the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which came into operation for regulated lenders (other than credit unions) on 1 July 2016 and in the case of credit unions, will come into operation from 1 January 2017. These revised SME Regulations introduce specific requirements for regulated lenders, including:
- Contacting SME borrowers who have been in arrears for 15 working days;
- Warning SME borrowers if they are in danger of being classified as not co-operating; and
- Expanding the grounds for appeal and setting up an internal appeals panel.
In relation to unregulated firms, the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was enacted on 8 July 2015. It was introduced to fill the consumer protection gap where loans were sold by the original lender to an unregulated firm. The 2015 Act introduced a regulatory regime for a new type of entity called a 'credit servicing firm'. Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'. This ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes (such as the SME Regulations noted above) issued by the Central Bank of Ireland.
Financial Services Ombudsman Data
Questions (129)
Niall Collins
Question:129. Deputy Niall Collins asked the Minister for Finance the total amount of funding allocated to the Financial Services Ombudsman in 2015 to 2017, inclusive, in tabular form; and if he will make a statement on the matter. [35669/16]
View answerWritten answers
At the outset, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions.
The Central Bank and Financial Services Authority of Ireland Act, 2004 provided for the establishment of the Financial Services Ombudsman Council. Under Section 57BE, the Financial Services Ombudsman Council may impose levies and fees to enable the Financial Services Ombudsman to perform the functions assigned to him and to exercise the powers conferred on him by statute. Under Section 57 BF, the regulations do not take effect until the Minister has consented to them in writing.
The following table shows funding levied on the financial service industry to be paid to the Financial Services Ombudsman:-
|
Year |
Funding to be paid by industry |
|
2015 |
€3,743,343 (out-turn) |
|
2016 |
€4,231,924 |
|
2017 |
Not available * |
*Council Regulations under Section 57BE have not yet been received.
Full details of the income and expenditure of Financial Services Ombudsman are available on his website at www.financialombudsman.ie. Actual expenditure may exceed funding provided by industry if funds are carried over from the previous year.
Financial Services Ombudsman Data
Questions (130)
Niall Collins
Question:130. Deputy Niall Collins asked the Minister for Finance the number of complaints received by the Financial Services Ombudsman in the 2010 to 2016, inclusive, in tabular form. [35671/16]
View answerWritten answers
Firstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions. Information on complaints numbers is available in the Annual Reports of the Financial Services Ombudsman at https://financialombudsman.ie/publications/.
The Financial Services Ombudsman has informed me that the information requested by the Deputy is contained in the following table:
|
Year |
Number of complaints received |
|
2010 |
7230 |
|
2011 |
7287 |
|
2012 |
8135 |
|
2013 |
7722* |
|
2014 |
4477* |
|
2015 |
4872 |
|
2016 (to end October 2016) |
3813 |
|
Total |
43,536 |
Note:
*Prior to September 2013 complaints which had not first been submitted to the financial service provider or which were otherwise incomplete were reported as complaints received. For the period from September 2013 to December 2014 incomplete complaints such as these were not included as complaints received. The numbers of complaints received during the periods concerned are 575 from September to December 2013 and 1,476 in 2014.
Semi-State Bodies Remuneration
Questions (131)
Michael McGrath
Question:131. Deputy Michael McGrath asked the Minister for Finance the details of all pension top-ups paid in respect of chief executives of semi-State companies under the aegis of his Department, including the name of the organisation, the name of the chief executive, the amount of the top-up, the date of payment, and if the top-up was approved by his Department in each of the years 2011 to 2016 to date in tabular form; and if he will make a statement on the matter. [36060/16]
View answerWritten answers
There is one body under the aegis of my Department which could be referred to as a semi-state company.
The Strategic Banking Corporation of Ireland (SBCI) is a private limited company established under the Strategic Banking Corporation of Ireland Act 2014. The SBCI was formed and registered under the Companies Acts. The issued share capital of the SBCI is owned solely by the Minister for Finance. I am advised by the SBCI that it does not generally consider itself a semi-state company in the usual course of business, it does not have its own staff, the staff of the SBCI are employees of the NTMA who are assigned to the SBCI. I am also advised that the Chief Executive of the SBCI, Nick Ashmore is a member of the NTMA defined benefit pension scheme and does not receive top ups.
National Educational Psychological Service Administration
Questions (132)
Michael Healy-Rae
Question:132. Deputy Michael Healy-Rae asked the Minister for Education and Skills the status of an appointment in respect of a person (details supplied); and if he will make a statement on the matter. [35536/16]
View answerWritten answers
I can inform the Deputy that my Department's National Educational Psychological Service (NEPS) provides educational psychology service to all primary and post-primary schools through an assigned NEPS psychologist and in some cases through the Scheme for Commissioning Psychological Assessments (SCPA), full details of which are on the Department's website. Under this scheme schools can have an assessment carried out by a member of the panel of private psychologists approved by NEPS, and NEPS will pay the psychologist the fees for this assessment directly.
In common with many other psychological services and best international practice, NEPS has adopted a consultative model of service. The focus is on empowering teachers to intervene effectively with pupils whose needs range from mild to severe and transient to enduring. Psychologists use a problem solving and solution oriented consultative approach to maximise positive outcomes for these pupils. NEPS encourages schools to use a continuum based assessment and intervention process whereby each school takes responsibility for initial assessment, educational planning and remedial intervention for pupils with learning, emotional or behavioural difficulties. Teachers may consult their NEPS psychologist should they need to at this stage in the process. Only in the event of a failure to make reasonable progress, in spite of the school's best efforts in consultation with NEPS, will the psychologist become involved with an individual child for intensive intervention or assessment.
This system allows psychologists to give early attention to urgent cases and also to help many more children indirectly than could be seen individually. It also ensures that children are not referred unnecessarily for psychological intervention.
If the parents of the child, the subject of this question, have specific concerns about his educational progress I would advise, in the first instance, that they speak to the Principal of the school with a view to raising these concerns with the school’s assigned NEPS psychologist.
I trust this clarifies the matter for the Deputy or local NEPS office.
Apprenticeship Data
Questions (133)
Niall Collins
Question:133. Deputy Niall Collins asked the Minister for Education and Skills the action points and deliverables laid out in Enterprise 2025 to increase the number of females enrolled in apprenticeships in view of the imbalanced ratio of female to male apprentices at present; and if he will make a statement on the matter. [35666/16]
View answerWritten answers
As the Deputy is aware, in order to be registered as an apprentice by SOLAS, a person must be employed by an approved employer in one of the 27 craft trades. Recruitment to apprenticeship is therefore driven by employers rather than by SOLAS or by education and training providers.
The 2014 Review of Apprenticeship in Ireland acknowledged that the number of women employed in craft apprenticeships is low as they operate in sectors that have traditionally low levels of female employment. SOLAS offers a bursary to employers to encourage women to take up apprenticeships in these areas. Despite this the number of female apprentices remains low.
Currently the Apprenticeship Council is overseeing the expansion of the apprenticeship system into a range of new areas, following a call for proposals from employers and education and training providers. 25 proposals have been prioritised by the Council for development. In recent months, we have seen the first of these new apprenticeships with the Insurance Practitioner Apprenticeship launching in September and the Industrial Electrical Engineer Apprenticeship recently commencing. Further new apprenticeships will get underway later this year and early next year. Many of these new programmes are in sectors where there is a different gender balance in the workplace and I am confident that this will lead to a strong increase in female participation when these new apprenticeships are launched in the coming months.
Accompanying the renewal and expansion of apprenticeship in Ireland will be a new branding and marketing campaign. SOLAS will examine how this campaign can assist with promoting apprenticeship to women and to their potential employers.
Schools Building Projects
Questions (134)
Thomas P. Broughan
Question:134. Deputy Thomas P. Broughan asked the Minister for Education and Skills if his attention has been drawn to the fact that additional funding is required by a school (details supplied) to upgrade the building and improve access for persons with a disability, especially those who require the use of a wheelchair; his plans to provide this funding; and if he will make a statement on the matter. [35520/16]
View answerWritten answers
My Department's Planning and Building Unit has no record of receiving an application for funding from the school to which the Deputy refers. If such an application is received it will be fully considered and a decision will issue directly to the school authority.
Minor Works Scheme
Questions (135)
Seamus Healy
Question:135. Deputy Seamus Healy asked the Minister for Education and Skills the date on which he will pay the minor works grants to primary schools here; and if he will make a statement on the matter. [35532/16]
View answerWritten answers
I have today announced the Minor Works Grant 2016/2017 and payments will issue shortly.
Minor Works Scheme Applications
Questions (136, 144)
Niall Collins
Question:136. Deputy Niall Collins asked the Minister for Education and Skills when a minor works grant for a school (details supplied) will be paid; and if he will make a statement on the matter. [35539/16]
View answer
Brendan Griffin
Question:144. Deputy Brendan Griffin asked the Minister for Education and Skills when a decision on a minor works grant 2016/2017 for a school (details supplied) in County Kerry will be decided; and if he will make a statement on the matter. [35629/16]
View answerWritten answers
I propose to take Questions Nos. 136 and 144 together.
I have today announced the Minor Works Grant 2016/2017 and payment will issue shortly, including to the school in question.
Minor Works Scheme Applications
Questions (137)
Declan Breathnach
Question:137. Deputy Declan Breathnach asked the Minister for Education and Skills if the school minor works grant will be paid in 2016 in respect of schools (details supplied); and if he will make a statement on the matter. [35557/16]
View answerWritten answers
Letters are not issued to primary schools advising on the likely payment or otherwise of the Minor Works Grant. Circular letter 0062/2013, which is available on my Department's website, states "the grant will only be paid in future years as funding permits."
I have today announced the Minor Works Grant 2016/2017 and payment will issue shortly, including to the school in question.