Written Answers Nos. 119-139
119. Deputy Dara Calleary asked the Tánaiste and Minister for Justice and Equality the changes that will be required in her Department's 2017 budget to account for the extra €25 million allocated towards pay issues post-budget; and if she will make a statement on the matter. [2899/17]
View answerThe additional €25 million in exchequer funding has been allocated directly to the Garda Vote to meet the costs of the Labour Court recommendation. This has led to an overall increase in the Justice Group (consisting of eight Votes) expenditure ceiling for 2017 compared with Budget Day.
The remaining cost of circa €25 million represents less than 1% of the total budget for the Justice sector. In identifying the underspends needed to offset this cost within the Vote Group, I am of course conscious of the need to maintain the resources necessary for the delivery of the front-line services in all areas of the sector. Of its nature, prudent management of budgets always requires careful and ongoing assessment throughout the year and the exact nature of the total adjustments to be made will only become clear over the course of the year but will, naturally, incorporate any underspends in areas such as administrative and legal expenses and any surplus receipts which are generated across the sector.
120. Deputy Dara Calleary asked the Tánaiste and Minister for Justice and Equality the number of Secretaries General in her Department; the annual pay of each Secretary General within her Department at 1 January 2017; the expected change in that pay as a consequence of the provisions of the Lansdowne Road agreement; and if she will make a statement on the matter. [2912/17]
View answer121. Deputy Dara Calleary asked the Tánaiste and Minister for Justice and Equality the number of assistant secretaries general in her Department; the annual pay of each assistant secretary general within her Department at 1 January 2017; the expected change in that pay as a consequence of the provisions of the Lansdowne Road agreement; and if she will make a statement on the matter. [2928/17]
View answerI propose to take Questions Nos. 120 and 121 together.
The information sought by the Deputy is set out in the table below:
|
Grade |
No. |
Salary (gross per annum) |
|
Secretary General |
1 |
€176,350 |
|
Assistant Secretary and equivalent |
16 |
€115,201 (2) €119,572 (4) €125,761 (1) €129,295 (1) €130,706 (1), €136,496 (3) €141,638 (2) €144,620 (1) €149,499 (1)* |
* Transferred into the Department under Senior Public Service Mobility (SPS)
Under the provisions of the Financial Emergency Measures in the Public Interest Act 2015 (FEMPI), for those on salaries in excess of €110,000, the salary reductions imposed under FEMPI will be restored in three equal phases on 1 April 2017, 1 April, 2018 and 1 April, 2019. I understand that a circular setting out the revised salary rates applicable from 1 April 2017 to general Civil Service grades, including Secretaries General and Assistant Secretaries is currently in preparation and will be issued by the Department of Public Expenditure and Reform in due course.
122. Deputy Clare Daly asked the Tánaiste and Minister for Justice and Equality her plans to streamline the legal aid process to enable one application to cover the inclusion of a solicitor on the legal aid panel for all counties rather than the current situation whereby each county operates their own system of paperwork and applications; and if she will make a statement on the matter. [2958/17]
View answerRegulation No. 4 of Statutory Instrument No. 12 of 1965, the Criminal Justice (Legal Aid) Regulations 1965 provides that each County Registrar shall compile a list of solicitors willing to act for legally aided persons in their county. In a recent audit of the Criminal Legal Aid Scheme conducted by my Department’s Internal Audit Unit a recommendation was made that it would be preferable to put in place a single central panel to be maintained by the Courts Service.
The County Registrars and the Courts Service have been consulted and my Department has commenced work on the drafting of the necessary amending Statutory Instrument to effect this change.
123. Deputy Clare Daly asked the Tánaiste and Minister for Justice and Equality her plans to reform the legal aid custody advice scheme, particularly with regard to any consideration being given to the fees associated with same. [2959/17]
View answerThe Garda Station Legal Advice Scheme commenced on the 14 February 2001 and it has been administered by the Legal Aid Board since 1 October 2011, the Board having taken over this role from my Department.
It provides free legal advice to persons whose means are insufficient to enable them to pay for consultation while detained in Garda Stations under the provisions of –
- Section 30 of the Offences against the State Act 1939 (as amended)
- Section 4 the Criminal Justice Act 1984 (as amended)
- Section 2 of the Criminal Justice (Drug Trafficking) Act 1996 (as amended)
- Section 42 of the Criminal Justice Act 1999
- Section 50 of the Criminal Justice Act 2007 (as amended)
- Sections 16 and 17 of the Criminal Procedure Act 2010
- Certain extension hearings
Following a decision of the Director of Public Prosecutions in May 2014 to facilitate the attendance of solicitors at Garda detainee interviews in Garda Stations the Scheme was revised as recommended to provide for payments to be made to solicitors who attended such interviews. New provisions were created and the Legal Aid Board published a new Scheme Provisions and Guidance Document in August 2014, which incorporated new payment headings and processes to operate the Revised Scheme.
An undertaking was given by my Department that a full review of the Scheme would be conducted when it had been in operation for a reasonable period of time to allow for adequate data and statistics to be gathered. At the last meeting of the Criminal Legal Aid Oversight Committee representatives of the Criminal Law Committee of the Law Society of Ireland attended in order to present their views on how the revised Scheme is operating. A full review of the Scheme is currently underway. On completion of this review the findings will be the subject of further discussions with the Law Society in advance of any proposed reform.
124. Deputy Clare Daly asked the Tánaiste and Minister for Justice and Equality further to Parliamentary Question No. 128 of 22 November 2016, whereby she stated that 22 of the present District Court judges were presiding in jurisdictions in which they had previously practised as a solicitor, if she will clarify those judges of the 22 that are in a permanent placement in their area of previous practice rather than a temporary assignment. [2960/17]
View answerI wish to inform the Deputy that the 22 District Court Judges referred to in the answer to parliamentary question number 128 of 22 November 2016 are all permanently assigned to their respective Districts. Permanent and temporary assignments in the District Court are provided for under Schedule 6 of the Courts (Supplemental Provisions) Act 1961, as amended.
125. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Justice and Equality the total number of drink driving cases that were affected by the issuing of the Garda certificate in Irish, by county; the number of these that were dismissed or struck out; the number that have been adjourned awaiting the outcome of the Supreme Court ruling due in June 2017; and if she will make a statement on the matter. [2978/17]
View answerI have requested the information sought by the Deputy and I will contact him directly when the information is to hand.
The following deferred reply was received under Standing Order 42A
I refer to Parliamentary Question No. 125 of 24 January 2017 asking the total number of drink driving cases that were affected by the issuing of the Garda certificate in Irish, by county; the number of these that were dismissed or struck out; the number that have been adjourned awaiting the outcome of the Supreme Court ruling in June 2017; and if I would make a statement on the matter.
You will recall the information requested could not be obtained in the time available and I undertook to contact you again when it was to hand. I am informed by the Garda authorities that it is not possible, without a disproportionate expenditure of Garda time and resources to provide the information requested.
Furthermore, An Garda Síochána is also dependent on the Courts Service for certain information and court outcomes and I am informed by the Courts Service that it does not record the reason a particular summons is struck out, dismissed etc. Similarly, the reasons for an adjournment are not recorded.
I am, however, advised that the matter referenced in the Deputy’s question was determined by Noonan J., at the High Court on 21 September 2015 and An Garda Síochána sought to have all cases, where this issue had relevance, before the Courts at the time, adjourned pending an appeal of the High Court decision. In certain cases, the Presiding Judge did not accede to that request and the matter was struck out or dismissed.
I am further informed that, following the judgment by Edwards J., at the Court of Appeal on 10 May 2016, all District Officers liaised with the respective Law Officers insofar as the cases in their Districts were affected by the outcome of these proceedings to ensure that all cases affected by this issue, which have not been finalised, are brought back before the Courts.
I hope this information is of assistance.
126. Deputy Jackie Cahill asked the Tánaiste and Minister for Justice and Equality the reason the Commissioner of Valuation is of the view that the introduction of a regional structure for the Valuation Office is not in line with the current operational requirements and work programmes of the organisation; the reason it is not at present under consideration, in view of the fact that the Valuation Office's work regularly brings staff to all counties and furthermore regional remote working offices were piloted for a nine month period in 2016 (details supplied); and if she will make a statement on the matter. [3023/17]
View answerUnder the provisions of the Valuation Acts, 2001 to 2015, the Commissioner of Valuation is independent in the exercise of his functions, and is responsible for the management and operations of the Valuation Office. As Minister for Justice and Equality, I have no function in relation to operational decisions of the Office. I am informed by the Commissioner of Valuation that the current arrangements in which all of the staff of the Valuation Office are located in one office premises in central Dublin are considered to be suitable and appropriate to the current needs of the organisation. This structure facilitates optimal use of centralised services and effective management and support structures are in place to take advantage of this arrangement in a cost effective manner.
Though staff of the Valuation Office are required, in the course of their duties, to visit other locations from time to time, I am informed that due to the increased use of information and communications technologies and the extensive electronic data sources available to the Office, the requirement to travel is increasingly less prevalent. I am also informed that although informal arrangements are in place to enable a small number of staff to work remotely from other Government buildings, this should not be regarded as a pilot project or a regional structure for the future. There are no proposals to put such a structure in place, nor is it part of the recently published strategic plan for the Office. These informal arrangements are temporary in nature and subject to review in September 2017 in light of changing requirements.
127. Deputy John Curran asked the Tánaiste and Minister for Justice and Equality the number of new entrants recruited to An Garda Síochána in 2016; the number of members that retired from An Garda Síochána in 2016; and if she will make a statement on the matter. [3117/17]
View answerThis Government is committed to ensuring visible, effective and responsive policing throughout the country in order to strengthen community engagement, provide reassurance to citizens and prevent crime. To make this a reality for all, the Government has in place a plan to achieve an overall Garda workforce of 21,000 personnel by 2021 comprising 15,000 Garda members, 2,000 Reserve members and 4,000 civilians. In 2017, funding has been provided for the recruitment of 800 Garda recruits and up to 500 civilians to support the wide ranging reform plan in train in An Garda Síochána. Appointments will also be made to the Garda Reserve of approximately 300.
I am informed by the Garda Commissioner that since the reopening of the Garda College in September 2014, 1,200 trainee Gardaí have been recruited and entered the Garda College, of whom 651 entered the Garda College in 2016. Of the 1,200 recruited to date, 679 recruits have attested as members of An Garda Síochána and have been assigned to mainstream duties nationwide. I am informed by the Garda Commissioner that another 900 trainee Garda are scheduled to attest in 2017 which will bring Garda numbers, taking into account expected departures, to around the 13,500 mark by year end.
This focus on investment in personnel is critical. The moratorium on recruitment introduced in 2010 resulted in a significant reduction in the strength of An Garda Síochána. We are now rebuilding the organisation and providing the Commissioner with the resources she needs to allow her to deploy increasing numbers of Gardaí across every Garda Division, in the coming years.
I am further informed by the Garda Commissioner that there were 263 departures from An Garda Síochána in 2016 which includes those who have departed owing to voluntary retirement, compulsory retirement, cost neutral early retirement, medical discharge, resignation, or dismissal.
I can assure the Deputy that projected departures from An Garda Síochána are kept under continuing review and the level of recruitment adjusted as necessary in order to achieve the desired strength of An Garda Síochána.
128. Deputy John Curran asked the Tánaiste and Minister for Justice and Equality the number of Garda currently stationed at Clondalkin, Lucan, Ronanstown and Rathcoole; the comparable figures for each of the years 2012 to 2015, in tabular form; and if she will make a statement on the matter. [3118/17]
View answerAs the Deputy will appreciate, the Garda Commissioner is responsible for the distribution of resources, including personnel, among the various Garda Divisions and As Minister, I have no direct role in the matter. Garda management keeps this distribution of resources under continual review in the context of crime trends and policing priorities so as to ensure that the optimum use is made of these resources. I am informed by the Garda Commissioner that in regard to the deployment of Garda personnel, a distribution model is used which takes into account all relevant factors including population, crime trends and the policing needs of each individual Garda Division. It is the responsibility of the Divisional Officer to allocate personnel within his/her Division.
This Government is committed to ensuring visible, effective and responsive policing throughout the country in order to strengthen community engagement, provide reassurance to citizens and prevent crime. To make this a reality for all, the Government has in place a plan to achieve an overall Garda workforce of 21,000 personnel by 2021 comprising 15,000 Garda members, 2,000 Reserve members and 4,000 civilians. In 2017, funding has been provided for the recruitment of 800 Garda recruits and up to 500 civilians to support the wide ranging reform plan in train in An Garda Síochána. Appointments will also be made to the Garda Reserve of approximately 300.
Since the reopening of the Garda College, 679 recruits have attested as members of An Garda Síochána and have been assigned to mainstream duties nationwide, including 62 to the Dublin Metropolitan Region (DMR) West Division which includes the areas to which the Deputy refers. I am informed by the Garda Commissioner that another 900 trainee Garda are scheduled to attest in 2017 which will bring Garda numbers to around the 13,500 mark by year end.
This focus on investment in personnel is critical. The moratorium on recruitment introduced in 2010 resulted in a significant reduction in the strength of An Garda Síochána. We are now rebuilding the organisation and providing the Commissioner with the resources she needs to allow her to deploy increasing numbers of Gardaí across every Garda Division, including the DMR West Division, in the coming years.
This investment in personnel is complemented by substantial investment in resources across the board for An Garda Síochána. The Deputy will be aware of the significant resources that have been made available to An Garda Síochána under the Government's Capital Plan 2016 - 2021. In particular, some €205 million in additional funding for Garda ICT and €46 million for new Garda vehicles has been allocated over the lifetime of the plan. This investment will facilitate the provision of more effective policing services and I have no doubt that these new resources now coming on stream will see an increase in Garda visibility in our communities.
For the Deputy's information I have set out in the following table the number of Gardaí stationed at Clondalkin, Lucan, Ronanstown and Rathcoole for each of the years from December 2012 to 30 November 2016, the latest date for which figures are readily available from the Garda Commissioner.
Garda Strength 2012-2106
|
STATION |
2012 |
2013 |
2014 |
2015 |
2016* |
|
CLONDALKIN |
95 |
91 |
89 |
87 |
94 |
|
LUCAN |
73 |
72 |
74 |
73 |
74 |
|
RONANSTOWN |
93 |
91 |
91 |
94 |
91 |
|
RATHCOOLE |
26 |
23 |
23 |
21 |
20 |
|
TOTAL |
287 |
277 |
277 |
275 |
279 |
*as of 30 November 2016
129. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Justice and Equality the way in which a member of the public can bring forward information or make a submission to the Garda whistleblowers inquiry; and if she will make a statement on the matter. [3131/17]
View answerI assume that the Deputy is referring to the review which I asked Mr Justice Iarfhlaith O’Neill to undertake relating to two protected disclosures which I received from members of An Garda Síochána in early October last year.
Mr Justice O’Neill was asked to review the allegations of wrongdoing contained in the disclosures, to make any inquiries with persons or bodies that he considered appropriate in relation to the review and to report to me on the conclusion of the review, including any recommendations which he may consider necessary in relation to any further action which may be appropriate and warranted to address the allegations. General submissions from the public were therefore not relevant to this particular review.
Mr. Justice O'Neill's review is now complete and I received his Report on 7 December 2016. The Report sets out in detail the allegations contained in the protected disclosures. In view of the nature of those allegations, and the fact that third parties are mentioned, the Report was referred to the Attorney General for her advice on how to proceed, including the question of what material might properly be put in the public domain, having regard to the rights of all concerned. Advices were received from the Attorney General’s Office which raised further issues and which necessitated further consultation between my Department and the Office.
I expect that I will be in a position to bring proposals to Government on this matter in the very near future.
130. Deputy Jackie Cahill asked the Tánaiste and Minister for Justice and Equality the total number of persons employed at her Department's office at Davis Street, Tipperary town, County Tipperary; the way in which this compares each year since it opened; if there is physical capacity in these offices for further decentralisation of jobs; her plans in this regard; and if she will make a statement on the matter. [3151/17]
View answerFurther to the question posed by the Deputy I assume that the reference to Davis Street, Tipperary Town relates to the Private Security Authority, an independent regulatory body under the remit of my Department, with responsibility for regulating and licensing the private security industry in the State.
The Private Security Authority decentralised to Tipperary town in October 2004 when a temporary office was first established. The table sets out the information on the number of persons employed from 2005 to date.
|
Year ending |
Number of persons employed |
|
2005 |
8 |
|
2006 |
27 |
|
2007 |
38 |
|
2008 |
38 |
|
2009 |
38 |
|
2010 |
37 |
|
2011 |
37 |
|
2012 |
36 |
|
2013 |
36 |
|
2014 |
39 |
|
2015 |
39 |
|
2016 |
40 |
As the Deputy will be aware the Citizenship Division of the Irish Naturalisation and Immigration Service of my Department is also a decentralised office located in Tipperary Town and there are 56 officers employed in that office.
There are currently no further plans to decentralise any more of my Department's functions to Tipperary Town.
131. Deputy Mattie McGrath asked the Tánaiste and Minister for Justice and Equality the status of the national women’s strategy; the groups and organisations that contributed to the formation of the strategy; the measures the strategy will utilise to support stay-at-home parents; and if she will make a statement on the matter. [3162/17]
View answerThe National Women's Strategy 2007 to 2016 has concluded. A public consultation on a new National Women's Strategy for the period from 2017 to 2020 is under way and will close on 31 January. Three public consultation meetings have been held in Cork, Athlone and Dublin and applications are still being accepted to attend a further meeting on the morning of 31 January in the Sligo Park Hotel. Written submissions are also sought. Further information on the consultation is given on www.genderequality.ie.
A list of persons and organisations that make written submissions will be published on this website when the consultation has concluded. A composite written report of the consultation meetings will also be available. The results of the consultation will be evaluated by a Strategy Committee being established to assist the Department of Justice and Equality with preparing the Strategy.
The issue raised by the Deputy will be among the matters to be considered.
132. Deputy Catherine Murphy asked the Tánaiste and Minister for Justice and Equality the position regarding incorporating the United Nations Convention on the Rights of Persons with Disabilities into law; and if she will make a statement on the matter. [3163/17]
View answerIreland signed the Convention on the Rights of Persons with Disabilities in 2007 and since then, successive Governments have emphasised Ireland’s strong commitment to proceed to ratification as quickly as possible, taking into account the need to ensure all necessary legislative and administrative requirements under the Convention are met. This Government remains committed to ratification of the Convention. It is essential that the State is in a position to meet the obligations it assumes under the terms of an international agreement from the moment of its entry into force for Ireland. Before the State can ratify the Convention on the Rights of Persons with Disabilities, enactment of new legislation and amendment of existing legislation is required to ensure obligations will be met upon entry into force for Ireland. Ratification of a Convention before we have amended domestic legislation that contradicts it makes no sense and does nothing to ensure compliance or to actually protect the people for whose benefit the Convention exists. The previous Government published a Roadmap in October 2015, which sets out the legislative measures needed to meet those requirements, along with declarations and reservations to be entered by Ireland on ratification. Considerable progress has already been made to overcome the remaining legislative barriers to Ireland's ratification of the Convention. The Assisted Decision-Making (Capacity) Act 2015 was signed into law on 30 December 2015 and is a comprehensive reform of the law on decision-making capacity. The Criminal Law (Sexual Offences) Bill 2015 completed Committee Stage in the Dáil on 7 December 2016. When enacted, the Bill will reform Section 5 of the Criminal Law (Sexual Offences) Act 1993 to facilitate the full participation in family life of persons with intellectual disabilities and the full expression of their human rights. Achieving the necessary balance between those rights and ensuring appropriate protection is crucial.
The Disability (Miscellaneous Provisions) Bill 2016 was published immediately prior to Christmas. The primary purpose of the Bill is to address the remaining legislative barriers to Ireland’s ratification of the UN Convention on the Rights of Persons with Disabilities (UNCRPD). Work is ongoing on all the other issues set out in the previous Government’s Roadmap for Ratification published in October 2015 and these will be progressed as Committee Stage amendments. The Bill will be progressed to enactment at an early date to facilitate ratification of the UN Convention as soon as possible. The precise timing of ratification now depends on how long it takes for the Bill to progress through the enactment process and on issues in relation to commencement of the Deprivation of Liberty provisions, which will be included in the Committee Stage amendments, and of the the Assisted Decision Making (Capacity) Act 2015.
133. Deputy Denise Mitchell asked the Tánaiste and Minister for Justice and Equality if she has reviewed the possibility of providing additional Garda to DMR north to address drugs issues in the area. [3204/17]
View answerAs the Deputy will appreciate, it is the Garda Commissioner who is responsible for the distribution of resources, including personnel, among the various Garda Divisions and I, as Minister, have no direct role in the matter. I am assured by the Garda Commissioner that the allocation of Gardaí is continually monitored and reviewed taking into account all relevant factors including crime trends, demographics, and security assessments relating to the area in question so as to ensure optimal use is made of Garda human resources. It is the responsibility of the Divisional Officer to allocate personnel within his/her Division.
I am informed that the number of Gardaí assigned to the Dublin Metropolitan Region (DMR) North Garda Division on the 30 November 2016, the latest date for which figures are readily available was 671 of which 22 were assigned to the Divisional Drugs Unit. It is important to note that all Gardaí have a responsibility in the prevention and detection of criminal activity whether it be in the area of drug offences or otherwise. The Garda National Drugs and Organised Crime Bureau leads out the policing strategy for tackling drugs supply. This approach allows for the co-ordinated use of Garda resources in tackling all forms of organised crime, including illicit drug activity nationwide. When appropriate, the work of the Division is supported by a number of Garda national units such as the National Bureau of Criminal Investigation, the Garda National Economic Crime Bureau, and the Garda National Drugs and Organised Crime Bureau.
At the request of the Garda Commissioner in 2016, the Government moved decisively to strengthen Garda resources to deal with gang-related crime in the Dublin area. In particular funding was approved for the establishment of a dedicated Armed Support Unit for the DMR in order to enhance armed support capability in Dublin and to free up the resources of the ERU. Following a selection and training process, the Armed Support Unit for the DMR is now fully operational and providing armed cover on a 24 hour basis. All the necessary resources have been provided to equip the new ASU and I have also taken steps to upgrade the equipment available to the Emergency Response Unit and the Special Detective Unit.
As part of the range of measures which have been put in place, a new Garda Special Crime Task Force has been in operation in the DMR since July 2016 and is focussing relentlessly on persons involved in gangland activities. It operates in cooperation with other agencies including the Revenue Commissioners and Department of Social Protection and has the benefit of the expertise of members of the Criminal Assets Bureau, Garda Divisional Asset Profilers, and the Garda Síochána Analysis Service.
I am also informed that Operation Hybrid has been established to coordinate the response to violent crime in Dublin and address public concerns about community safety. As of 9 January 2017, there have been 51 arrests and 5 charges brought in connection with the recent shootings and 3 charges brought for related offences. In addition, 26 firearms have been seized and over 11,000 lines of enquiry conducted. In excess of 20,000 high visibility checkpoints have been implemented with significant support from Armed Support Units and a significant amount of CCTV footage, mobile phone traffic, and forensic evidence is also being examined. I understand Operation Hybrid is reviewed on a weekly basis to maintain optimal impact.
Underpinning all of these measures is the Government’s commitment to ensuring visible, effective and responsive policing throughout the country in order to strengthen community engagement, provide reassurance to citizens and prevent crime. To make this a reality for all, the Government has in place a plan to achieve an overall Garda workforce of 21,000 personnel by 2021 comprising 15,000 Garda members, 2,000 Reserve members and 4,000 civilians. In 2017, funding has been provided for the recruitment of 800 Garda recruits and up to 500 civilians to support the wide ranging reform plan in train in An Garda Síochána. Appointments will also be made to the Garda Reserve of approximately 300.
Since the reopening of the Garda College, 679 recruits have attested as members of An Garda Síochána and have been assigned to mainstream duties nationwide, including 52 to the DMR North Division. I am informed by the Garda Commissioner that another 900 trainee Garda are scheduled to attest in 2017 which will bring Garda numbers to around the 13,500 mark by year end.
This focus on investment in personnel is critical. The moratorium on recruitment introduced in 2010 resulted in a significant reduction in the strength of An Garda Síochána. We are now rebuilding the organisation and providing the Commissioner with the resources she needs to allow her to deploy increasing numbers of Gardaí across every Garda Division, including the DMR North Division, in the coming years.
134. Deputy Ruth Coppinger asked the Minister for Finance the cost over the next five years of increasing mortgage interest relief for landlords to 100%; and if he will make a statement on the matter. [2544/17]
View answerA landlord in receipt of rental income is assessed to income tax on their net profit after deduction of allowable expenses incurred in earning those rents. In computing the profit amount of the rents received, only those deductions that are specified in section 97(2) of the Taxes Consolidation Act 1997 are allowable.
Interest on money borrowed to purchase, repair or improve the premises is specified as an allowable deduction, but subject to certain restrictions. A landlord is entitled to claim a deduction for 100% of qualifying interest in respect of a rented commercial premises but, between 2009 and 2016, in general only 75% of qualifying interest was allowable in respect of rented residential property. I provided in Budget 2017 for the restoration of 100% interest deductibility on a phased basis over 5 years, commencing from 1 January 2017. The deduction available in respect of interest accrued in 2017 on a loan relating to a residential rental property is 80% of qualifying interest.
Interest paid on monies borrowed to purchase, repair or improve a rental premises is generally accepted as being a legitimate rental expense. The restriction to 75% deductibility in respect of residential rental property was introduced as part of the revenue-raising package in Finance Act 2009 required to stabilise the public finances. However in view of the current rental accommodation shortages, it was my view that it was appropriate to revisit this measure in Budget 2017. Restoration of full interest relief on borrowings for residential landlords was also recommended in the DKM Consultants 2014 report "Rent Stability in the Private Rented Sector" prepared for the Housing Agency on behalf of the Private Residential Tenancies Board. The report noted that the restriction could create market distortions in favour of cash buyers and investment in commercial property where unrestricted deduction for qualifying interest is still available.
I am advised by Revenue that, based on personal Income Tax returns filed for the year 2014, the latest year for which complete information is available, and making certain assumptions about the data, it is estimated that the cost of increasing the level at which landlords can claim interest repayments against tax for residential rental properties from the current 2017 level of 80% to 100% is in the order of €56 million per annum on a full-year basis.
It should be noted that this estimate does not include the cost associated with the increase in the level of qualifying rental interest payments from 75% to 80%, which amounted to €14 million on a full year basis.
135. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding the help-to-buy scheme; and if he will make a statement on the matter. [2681/17]
View answerThe process to register as a 'qualifying contractor' for the Help to Buy incentive requires documentation be submitted which shows:
- that the contractor has valid tax clearance and is considered compliant for Relevant Contracts Tax (RCT) purposes
- details of the proposed or actual qualifying residences. Such details include a copy of the planning permission, the residences already constructed (if already built) and details of the ownership of the land on which the qualifying residences are, or will be, constructed.
In addition, a short one-page registration form, HTB1, seeks the applicant's consent to have his, her or its name and tax registration number published on the Revenue website as a 'qualifying contractor'. The publication details are necessary in order that potential purchasers can check that the contractor qualifies under the incentive.
The Help to Buy scheme is a generous incentive that facilitates the purchase of a new home by a First Time Buyer. For new builds, the rebate is payable on signing the contract to purchase the property rather than upon completion of the sale. This means that it is necessary that details of the planning permission and ownership of the land are provided to Revenue. This information is completely within the control of the builder/developer. The other key condition is that of tax clearance/tax compliance. If a contractor is not tax compliant, in order to participate in the scheme, he or she should engage with Revenue to bring his or her tax affairs up to date.
These administrative requirements on contractors to be registered as 'qualifying contractors' are necessary in order to safeguard public monies being paid under the incentive. I do not regard such requirements as particularly onerous and the information sought is generally seen as the minimum necessary to satisfy Revenue that the purpose of the incentive, the increased provision of houses for First Time Buyers, will be delivered, and by tax compliant contractors.
The Deputy should also be aware that Help to Buy claimants who purchase their home on or after 1 January 2017 are effectively instructing the Revenue to pay their Help to Buy rebate directly to their approved qualifying contractor's bank account. Consequently, it is crucial that the bona fides of the contractor in question is fully established at the point the rebate is made.
As regards the level of interest on the part of contractors, I am advised by Revenue that in the period up to and including 20 January 2017, there have been 53 applications for registration. Thirteen of these applications have been registered as 'qualifying contractors' and their details published on the Revenue website. The remaining applications are being processed and any unsuccessful applicants have been advised about how to address any issues arising in their application.
I am further advised by Revenue that they have seen a steady increase in the number of applications. There were nine applications received in 2016, and in the first three weeks of January the number of weekly applications have been 8, 14 and 22, respectively. I believe that these statistics show that contractors do indeed believe that it is worth their while registering for the incentive.
136. Deputy Brendan Griffin asked the Minister for Finance the rights and recourse a first time buyer has in the event of a builder or developer refusing to complete the required forms to enable the buyer to avail of the new first time buyers scheme; if there is an alternative route for the buyer to follow in such circumstances to avail of the grant; and if he will make a statement on the matter. [2572/17]
View answerThe legislation setting out the payment provisions for the Help to Buy incentive is contained in Section 477C (16) of the Taxes Consolidation Act 1997. Claimants are required to complete a two-stage online process; an application and then a claim.
First-Time Buyers under the Help to Buy incentive fall into 3 categories as follows:-
1. Claimants who have contracted to purchase, or drawn down the first tranche of their qualifying loan to self-build, their home in the period between 19 July 2016 and 31 December 2016, inclusive. This category is known as Retrospective Claimants.
2. Claimants who contract to purchase their home, in the period between 1 January 2017 and 31 December 2019.
3. Claimants who draw down the first tranche of their qualifying loan to self-build their home in the period between 1 January 2017 and 31 December 2019.
Regarding retrospective claimants, I am advised by Revenue that the claim process does not require the developer to pass information to Revenue. Instead, retrospective claimants are required to submit supporting documentation including a signed copy of the contract, evidence of their mortgage or mortgage drawdown, and details of the property directly to Revenue.
Regarding claimants who contract to purchase their home in the period between 1 January 2017 and 31 December 2019, I am advised that the information supplied by the claimant will require verification by the Revenue-approved qualifying contractor before any refund is paid. The appropriate refund will be made directly to the qualifying contractor. Therefore I am advised that Revenue do not envisage any delays on the part of the contractor in completing the process.
Regarding claimants who draw down the first tranche of their qualifying loan to self-build their home in the period between 1 January 2017 and 31 December 2019, I am advised that the information supplied by the claimant will require verification by the claimant's solicitor before any refund is paid. The appropriate refund will be made to the claimant's qualifying loan bank account. Such claims do not require the developer to pass information to Revenue.
I am advised by Revenue that once complete information is received, all refunds are being processed in full without delay.
All claimants are advised to provide the necessary information to Revenue via MyEnquiries, which is an online service that allows customers to securely send correspondence to Revenue. MyEnquiries can be accessed from the Revenue website www.revenue.ie either through myAccount or through ROS (Revenue's Online Service), depending on whether the claimant is a PAYE taxpayer or a self-employed taxpayer.
If the Deputy knows of a contractor who is not co-operating with a First Time Buyer to allow them claim any payments under the Help To Buy incentive, he should provide these details to my officials and I will arrange to have this information passed to Revenue.
137. Deputy Mick Barry asked the Minister for Finance if the auditor that failed to detect the wrongdoing at an organisation (details supplied) and was subsequently reported to the Revenue Commissioners by a whistleblower, was then subsequently reported by the Revenue Commissioners to the Chartered Accountants Ireland; and if he will make a statement on the matter. [2613/17]
View answerI am informed by Revenue that they are legally prevented from making any comments in relation to specific cases on the grounds of taxpayer confidentiality.
Section 851A of the Taxes Consolidation Act 1997 (inserted by the Finance Act 2011) placed on a formal statutory basis the long-standing and accepted obligation on Revenue to treat all taxpayer information confidentially. The general position is that all taxpayer information is confidential, and may only be disclosed in accordance with the terms of that provision or under any other statutory provision that allows the disclosure of such information.
138. Deputy Brendan Howlin asked the Minister for Finance the status of action 9 of the strategy for the private rental market which sets out that his Department will establish a working group on tax and fiscal treatment of rental accommodation providers in the first quarter of 2017; the terms of reference for the working group; if the working group has met; the membership of the working group; if the group will provide opportunities for outside engagement and submissions; the timeline for the group to produce a final report; if the work of this group will encompass the consideration of tax relief for renters recently referred to by the Minister for Housing, Planning, Community and Local Government or if that matter will be considered by a separate group; if so, if he will provide the same details requested in relation to the working group on tax and fiscal treatment of rental accommodation providers; and if he will make a statement on the matter. [2622/17]
View answerThe Rebuilding Ireland Strategy for the Rental Sector, published by the Department of Housing, Planning, Community and Local Government in December 2016, committed to the establishment of a working group in early 2017 to examine and report on the tax treatment of landlords (or rental accommodation providers), and to put forward options, where appropriate, for amendments to such treatment.
The first meeting of the Working Group took place on the nineteenth of January and proposed terms of reference will be put to me for consideration and approval soon. The group is chaired by the Department of Finance and its membership at present consists of officials from the Tax and Economics Divisions of the Department of Finance; the Revenue Commissioners; the Housing Division of the Department of Housing, Planning, Community and Local Government; and the Residential Tenancies Board. It is anticipated that the group will also receive input from sectoral representatives in due course.
A public consultation was conducted during the development of the Rebuilding Ireland action plan to which almost 500 written submissions were received. Aspects of these submissions relating to the tax and fiscal treatment of rental accommodation providers will be considered by the Working Group, and the Group will facilitate the making of submissions by others, including political parties, either as part of a more focused additional public consultation or by other means.
The report of the Working Group is scheduled to be completed in advance of Budget 2018, to allow for consideration of proposed options, if any, in consultation with Minister Coveney, as part of my deliberations for that Budget. The tax treatment of tenants or renters is not within the scope of the commitment given in the strategy for the rental sector publication and therefore is not currently being considered by a specific working group within my Department. However, all tax reliefs are regularly reviewed as part of the annual Budget and Finance Bill process.
139. Deputy Pearse Doherty asked the Minister for Finance the effect on fiscal space if Bus Éireann were to be placed on balance sheet for the purposes of the budget; and if he will make a statement on the matter. [2642/17]
View answerThe classification of Bus Éireann as a public corporation was recently reviewed as part of the work the Central Statistics Office (CSO) carried out to complete the Public Corporations Questionnaire for EUROSTAT. This questionnaire considered data from annual financial statements up to 2015. One of the purposes of this questionnaire is to conduct the Market / Non-Market test over a three year period on publicly controlled corporations in order to determine their institutional sector classification. For Bus Éireann it was determined that, based on their accounts for the years 2013-2015, they covered more than 50% of their costs through sales, or, in their case, operating turnover. On the basis that this does not include any government subventions or grants, the CSO has made the determination that Bus Éireann is classified in the Non-Financial Corporations sector for the period under consideration. The sector classification of Bus Éireann and all other public bodies will continue to be reviewed annually however a sector reclassification would only be considered when a trend of non-market activity is observed over a number of years.
In the circumstances that Bus Éireann or any other entity was reclassified by the CSO and included in the General Government sector the expenditure base used in the expenditure benchmark calculation of fiscal space would be adjusted to reflect the level shift in expenditure. As a result, providing their annual expenditure remained constant, there would be no impact on fiscal space.
