Written Answers Nos. 138-159
138. Deputy Pat The Cope Gallagher asked the Tánaiste and Minister for Justice and Equality her plans for improving the Garda station in Donegal town; and if she will make a statement on the matter. [26018/17]
View answer139. Deputy Pat The Cope Gallagher asked the Tánaiste and Minister for Justice and Equality her plans to restore the Glenties district Garda station to its previous status; her further plans to restore Garda numbers in west Donegal; and if she will make a statement on the matter. [26019/17]
View answer140. Deputy Pat The Cope Gallagher asked the Tánaiste and Minister for Justice and Equality the number of Garda cars currently available in the Donegal division; the way in which current Garda car numbers compare with those in 2011 to 2014; and if she will make a statement on the matter. [26020/17]
View answerI propose to take Questions Nos. 138 to 140, inclusive, together.
The Deputy will be aware that the Garda Commissioner is responsible for the distribution of resources among the various Garda Divisions and, as Minister, I have no direct role in the matter. Garda management keeps the 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.
The redevelopment of Donegal Garda Station is included in the Garda Building and Refurbishment Programme 2016-2021, which I launched in October 2015, and I understand from the Garda authorities that proposals to extend and upgrade the Station have now been agreed by An Garda Síochána. The OPW is currently progressing planning and tender documents and it is envisaged that a planning application will be lodged shortly, after which a six week consultation period is required. The tender for the works is expected to issue once planning permission has been granted. I further understand that the OPW is currently engaged in securing alternative accommodation for An Garda Síochána for the period during which the planned works are to be carried out.
In relation to Garda vehicles, I can inform the Deputy that ,between the years 2011 to 2014 the numbers of Garda vehicles in the Donegal Division fell from 71 to 60. However, as at 25 May 2017, the latest date for which figures are currently available, the number of Garda vehicles in the Division stands at 71. The recent increase in vehicle numbers is a consequence of the significant Government investment in the Garda fleet. As the Deputy will be aware, some €46 million is being invested in the Fleet over the lifetime of the Capital Plan 2016-2021. The actual expenditure in new and replacement vehicles over the period 2013 to 2016 was in the region of €40 million. This works out at average expenditure of €10 million per annum compared to an average of €1.6 million over the three year period 2009 to 2011 for example.
I have been advised by the Commissioner that as of the 31 March 2017 there were 378 Garda with 20 Garda Reserves and 31 civilians attached to the Donegal Division. When appropriate, the work of local Gardaí 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.
The Deputy will also be aware that the Garda Síochána Inspectorate, at the request of the Policing Authority, is carrying out a review of the dispersal and use of resources available to An Garda Síochána in the delivery of policing services to local communities. The Authority has informed the Inspectorate that the review should take account of:
- the changing environments in rural, developing urban and suburban areas;
- the views of local communities;
- the allocation to and deployment of Garda resources at the local policing level, including the use of the Garda Reserve, Garda facilities and Garda equipment; and
- relevant recommendations made in previous Inspectorate reports.
The review will be comprehensive including a consultative process with local communities. It is the view of the Garda Síochána Inspectorate that the review should be completed within the first half of 2018.
This Government is committed to ensuring a strong and visible police presence throughout the country in order to maintain and strengthen community engagement, provide reassurance to citizens and deter 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. Funding has also been provided for the recruitment of 300 Garda Reserves.
This plan is progressing apace. I am informed by the Commissioner that, since the reopening of the Garda College in September 2014, 17 newly-attested recruits were assigned to the Donegal Division. I am also informed that another 600 trainee Garda are scheduled to attest this year which will see Garda numbers, taking account of projected retirements, increase to around the 13,500 mark by year end - an increase of 500 since the end of 2016.
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 including Community Gardaí across every Garda Division, including the Donegal Division, in the coming years. To ensure a continuous pipeline of candidates a new recruitment drive was launched by the Commissioner earlier this month with a closing date of 1 June. The competition is being undertaken by the Public Appointment Service on behalf of the Commissioner and applications should be made to www.publicjobs.ie.
141. Deputy Bríd Smith asked the Minister for Finance if he will intervene in the case of a person (details supplied) who has been refused a primary certificate by the Disabled Drivers Medical Board of Appeal, in view of the finding of the Office of the Ombudsman that the scheme as currently framed is overly rigid and inflexible and may be causing inequity. [25389/17]
View answerThe 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 grant assistance towards the cost of fuel used by members of the Scheme, the Scheme represented a cost of €65 million to the Exchequer in 2016. This figure does not include the revenue foregone to the Local Government Fund in 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.
142. Deputy Aengus Ó Snodaigh asked the Minister for Finance the options available to vendors who, despite having home insurance themselves, cannot sell their home due to the prospective purchasers not being able to get the required home insurance (details supplied). [25362/17]
View answerI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to householders and businesses alike, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years in order to minimise the risk of flooding.
However, 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 as they need to adequately provision to meet those risks. In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation, and neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance which 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.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- development and implementation of plans by the OPW to implement flood relief schemes, and
- improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in marginal areas.
While it is not possible for me to comment in detail on individual cases without the full facts, I am advised by the OPW that following the severe flood events in Dublin of October 2011, the Camac catchment in which Kilmainham is situated, was prioritised in the Catchment Flood Risk Assessment and Management (CFRAM) Programme being undertaken by the OPW. While no overall cost-beneficial solution was found for the Camac catchment within the CFRAM study, OPW has proposed to Dublin City Council (DCC) that DCC carry out a further assessment on a more localised basis. I am informed that this work is now being progressed by DCC and South Dublin County Council with assistance and funding provided by OPW.
Insurance Ireland has informed me that its members, since 1 June 2014, have factored data on all completed flood defence schemes, provided by the OPW, into its assessment of flood risk within these areas. This information has been provided as part of an information sharing arrangement entered into between OPW and Insurance Ireland (Memorandum of Understanding). The nature of this arrangement is such that it should lead to a greater availability of flood cover in previously higher risk areas, and at better prices.
The most recent Insurance Ireland survey of approximately 85% of the property insurance market in Ireland indicates that of the 16 completed defence schemes, 90% of policies in areas benefiting from permanent flood defences include flood cover, while 77% of policies in areas benefiting from demountable defences include flood cover. The particular issues in relation to the remainder of policies is actively being explored with the insurance industry through a working group in which the OPW, the insurance industry and the Department of Finance participate. Further meetings of this group are scheduled this month.
Finally, as the Deputy will be aware, a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.
143. Deputy Pearse Doherty asked the Minister for Finance his views on whether further measures will be required in 2017 in order to comply with the provisions of the Stability and Growth Pact in view of an EU report (details supplied); the measures which may be implemented in 2017 as a result; and if he will make a statement on the matter. [25398/17]
View answerThe European Commission published its recommendation for a Council Recommendation on the 2017 National Reform Programme of Ireland and delivering a Council opinion on the 2017 Stability Programme of Ireland on the 22 May 2017. My officials are currently examining the recommendation and the Commission staff's assessment of Ireland's 2017 Stability Programme Update.
Recital eight of the Commission's recommendation calls for Ireland ‘to achieve an annual fiscal adjustment of 0.6% of GDP towards the medium-term budgetary objective in 2017. Based on the Commission's 2017 spring forecast, there is a risk of a significant deviation from the recommended fiscal adjustment over 2016 and 2017 taken together’.
The EU Commission’s own forecasts estimate that the required 0.6% of GDP improvement in Ireland’s structured balance will be delivered in 2017 and that the average deviation for 2016 and 2017 taken together is 0.1% of GDP. Accordingly, the reference to a risk above would appear to refer to the expenditure benchmark.
The Deputy should be aware that a methodological change was agreed in late 2016 to the way compliance with the expenditure benchmark will be assessed going forward. In future, the Commission will take one-offs systematically into account in the assessment process. However in my view, it cannot be retrospectively applied to 2016 expenditure benchmark assessment or to the 2016/2017 average. Indeed, the 2017 version of the Vade Mecum states that “in order to preserve Member States’ legitimate expectations, compliance with already adopted Council recommendations will continue to be assessed on the basis of methodologies described in the 2016 version of the Vade Mecum."
Nonetheless, the Commission appears to have retrospectively applied this change in its calculations and this would appear to be the basis of its statement. My officials are taking this issue up bilaterally with the European Commission.
144. Deputy Stephen S. Donnelly asked the Minister for Finance if he raised the relaxation of fiscal rules through the implementation of the unusual event clause in the context of the impact of Brexit on Ireland at the Eurogroup meeting on 22 May 2017; and if he will make a statement on the matter. [25409/17]
View answerI did not raise the possibility of utilising the unusual event clause when at the Eurogroup meeting last week as Ireland currently does not qualify for its use. As outlined for Deputy Doherty in PQ number 24 of the 18/05/2017 the Commission’s guidance on the implementation of the ‘unusual event clause’ in the preventative arm of the Stability and Growth pact (SGP) allows for exceptional spending directly linked to unusual events outside of the control of Government, if this spending does not endanger fiscal sustainability in the medium term. This clause is granted on the basis of individual case-by-case assessments and, to date, has only been granted to six Member States in light of refugee-related costs and to three Member States following submissions based upon security-related expenditure. It should also be noted that any Member State availing of this clause must still meet their SGP obligations when the additional spending on the unusual event provided for in the clause is excluded.
Accordingly, any application for leniency under this clause would require that Ireland demonstrate that the British exit from the EU has had a “major impact on the financial position of the general government”. Objectively, no such material impact on Ireland’s general government balance has been observed to date. This is not surprising given that the negotiation on the terms of the UK exit have yet to commence in substance and will not conclude until 2019.
Furthermore, the European Commission has repeatedly emphasised that budgetary discipline is assessed against reference values that do not differentiate amongst different types of expenditure. Any deficit-financed expenditure must be repaid through future taxes. Any rule that grants special treatment to certain kinds of public expenditures could create incentives for creative accounting.
Nonetheless Ireland will explore existing and possible future EU measures that could potentially assist Ireland in mitigating the effects of the UK’s withdrawal on specific Irish businesses and economic sectors. Ireland will also, in light of developments, continue to make a strong case at EU level that the UK’s withdrawal represents a serious disturbance to the Irish economy overall and that we will require support.
145. Deputy Stephen S. Donnelly asked the Minister for Finance if planning has started for a scenario in which no deal is reached in Brexit negotiations; if this planning has been completed; if he will publish the results of this scenario planning; and if he will make a statement on the matter. [25410/17]
View answerThe Department of Finance has been assessing and preparing for the impact of Brexit since well before the referendum on 23 June 2016. Work was carried out in the Department to assess the potential economic and financial sector implications arising, including the study, published in November 2015, under the ESRI-Department of Finance research programme, entitled 'Scoping the Possible Economic Implications of Brexit on Ireland'. The Department's work has been carried out within the whole-of-Government arrangements overseen by the Department of the Taoiseach.
Following the result of the UK referendum, work has been intensified across the whole of Government level, including in my own Department, to ensure that Ireland’s interests are protected in the negotiations at EU level and to ensure that Ireland will be in position to mitigate the negative economic impacts arising from Brexit. In my own Department, a Brexit Unit was established in July 2016, within the EU and International Division, to oversee and coordinate this work and to act as a key liaison point with the Department of the Taoiseach, in particular. In addition, the Department of Finance staff complement in the Irish Permanent Representation to the EU in Brussels has been strengthened. The challenge which we face as a result of Brexit is mainstreamed across all divisions of my Department and this is reflected in business planning.
The Department of Finance contingency work is ongoing and rightly continues to examine all scenarios, including the scenario of the UK leaving the EU without an agreement in place. This work is an important input to the whole-of-Government work being overseen by the Department of the Taoiseach. In accordance with its role, my Department continues to monitor the economic impacts and carry out relevant analysis, and to frame budgetary policy advice in this new context.
We know from our own published research that the potential impact on the Irish economy is significant. The medium to long term economic impacts of a ‘hard Brexit’ with reversion to the WTO trade rules are set out in the November 2016 joint paper with the ESRI ‘Modelling the potential macroeconomic Impact of Brexit on Ireland’. Looking at the effect ten years after a UK exit, a hard Brexit scenario results in the level of GDP being almost 4 per cent below what it otherwise would have been in a no-Brexit scenario.
It is important to recognise that the full impact of the UK's exit is only expected to materialise over time. As we cannot control the international environment, we will need to continue to improve our competitiveness, including by focussing on costs we can control, by boosting our productivity and ensuring sustainable public finances.
146. Deputy Stephen S. Donnelly asked the Minister for Finance the number of times he has met an organisation (details supplied) on Brexit-related matters in 2017; and if he will make a statement on the matter. [25411/17]
View answerIrish SMEs will require support to diversify and restructure their businesses in light of Brexit. It is a key Government strategy to support the growth of and investment in this important sector of the economy. As the Deputy will be aware, there are already significant Government measures to support the financing needs of SMEs and these will be available to assist SMEs deal with the effects of Brexit. These include the SBCI, the Supporting SMEs Online Tool, the Credit Guarantee Scheme, the Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office.
Advisory supports in relation to business planning, such as those provided by the Local Enterprise Offices and Enterprise Ireland, will be particularly important in assisting SMEs that may be adversely affected due to Brexit and will help raise awareness of both private market and State supports in this regard.
Viable Irish SMEs can access sustainable, flexible and appropriately priced finance through the Strategic Banking Corporation of Ireland (SBCI). The SBCI uses an on-lending model; this means it does not lend directly to SMEs, rather it rather it channels its funds though partner financial institutions, known as on-lenders. The SBCI currently has eight on-lending partners, three bank and five non-bank. To the end of December 2016, the SBCI has lent €544 million to 12,593 SMEs supporting 67,150 jobs with 84% of loans being used for investment purposes. The SMEs who received SBCI finance are from a variety of business and economic sectors and are spread across every region of the country. The SBCI is currently seeking to broaden its distribution capability and market coverage by adding new on-lenders and is working to develop innovative products, thereby serving to meet the needs of Irish SMEs and drive competition in the SME finance market.
I have met with the Chief Executive of the SBCI in the context of a Cabinet Committee meeting concerning Brexit related issues. Additionally, officials from my Department are working closely with the SBCI, Department of Jobs, Enterprise and Innovation and Enterprise Ireland to examine Brexit mitigation policy measures to assist SMEs to deal with the effects of Brexit. Given the uncertainty concerning the post-Brexit relationship between the UK and the EU, the Deputy can rest assured that my Department will continue to monitor and address Brexit related issues facing Irish SMEs on an ongoing basis.
147. Deputy Stephen S. Donnelly asked the Minister for Finance further to his recent meeting at the European Investment Bank, if he has requested a review of strategy regarding the provision of additional loans for investment in infrastructure needed as a result of Brexit; and if he will make a statement on the matter. [25412/17]
View answerThe first meeting of the Ireland-EIB Financing Group coincided with the formal opening of the EIB’s office in Dublin in December 2016, which in itself was a very welcome development. I chaired the meeting since the Minister for Finance is the Governor for Ireland of the EIB - this mirrors the position pertaining in the other 27 EU Member States. My Cabinet colleagues, the Ministers for Public Expenditure and Reform and Jobs, Enterprise and Innovation, Education and Skills were also at the meeting, along with representatives of a range of relevant Irish Agencies. The EIB was represented by its President Werner Hoyer, Vice-President Andrew McDowell and a number of the senior management of the EIB.
The terms of reference for the Group are:
a) to raise awareness in Ireland of new EIB products and platforms;
b)to encourage a strong pipeline of projects from Ireland for consideration by the EIB;
c) to review the scope for enhanced cooperation between EIB and Irish authorities;
d) to examine the scope for further improving financing conditions for Irish small and medium-sized enterprises and
e) to examine opportunities for using EIB financing and technical assistance to address housing, transport and other infrastructure investment requirements;
The Financing Group builds upon the already strong relationship between the Irish Authorities and the EIB over recent years which has seen a significant deepening and widening of support for Irish investment projects in terms of increased amounts of funding and a wider range of areas covered by this funding. This outcome was an important objective for the Government in its engagement with the Bank and I am pleased with the achievements secured to date.
As the Deputy will be aware, the Government has identified and prioritised four headline challenges in relation to Brexit: minimising the impact on our trade and economy, protecting the peace process and the Good Friday Agreement, maintaining the Common Travel Area with the UK and securing Ireland’s future in a strong European Union.
The Capital Investment Plan 2016-2021 is currently under review to ensure that capital spending is fully aligned with national economic and social priorities while remaining consistent with the Programme for Partnership Government objectives. To support these objectives, there are proposed projects included in the Capital Plan which have the potential to exploit opportunities or address vulnerabilities in a given sector which may arise as a result of Brexit. However, due to the limited fiscal space the opportunities for securing infrastructural project funding are somewhat constrained and, in addition, the Government will be challenged with determining priority projects given competing demands on its finite resources. Following the outcome of the review of the Capital Investment Plan Government will agree on which projects will be approved.
I met with the EIB in Luxembourg on 23-24 May, along with Minister Donohoe, in the second formal meeting of the EIB Ireland Financing Group. We specifically covered the issue of Brexit in our meeting with the Bank, which again involved President Hoyer and Vice-President McDowell. At that meeting, it was agreed that the work of the Group, and its three sub-groups which met on a number of occasions earlier this year, should continue, while a number of specific action points were agreed for intensive follow-up engagement over the coming weeks and months:
- the Irish authorities and EIB to explore potential financing options for delivering Metro North, drawing on EIB's knowledge and experience of financing similar projects in other countries.
- to engage in exploratory discussions in relation to EIB's knowledge and experience of different user-pay PPP or concession type models for delivering infrastructure projects - but without prejudice to decisions on project selection that will only be taken by Government following completion of the mid-term review of the capital plan, or the review of policy in relation to the future use of PPPs or concessions that is currently underway as part of the mid-term review.
- to explore, partly in relation to mitigation of the impacts of Brexit on the Irish economy, the potential for EIB to become involved in funding measures to provide access to finance for the enterprise/agriculture sectors: a follow-up meeting is to be arranged in Dublin in June with relevant Departments and Agencies.
148. Deputy Thomas Pringle asked the Minister for Finance if his attention has been drawn to the issue of rising insurance costs incurred by marts, particularly in regard to a case (details supplied) which has experienced almost a twofold increase in insurance costs since 2015; if his Department has a policy in relation to monitoring insurance costs in this sector; if charges are calculated by comparing the turnover of marts across the country regardless of whether they open longer and generate more turnover than smaller marts; and if he will make a statement on the matter. [25548/17]
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 can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which 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. Consequently, I am not in a position to review individual cases nor to direct insurance companies as to the pricing level or terms or conditions that they should apply in particular cases.
Nevertheless, it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the availability and cost of insurance. Accordingly, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short, medium 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 was the issue of rising motor insurance premiums and the Report on the Cost of Motor Insurance was published in January 2017.
In parallel with implementing the motor insurance recommendations, the Working Group in its second phase is examining the Employer Liability and Public Liability Insurance sectors. The Working Group is building upon the previous work done in the motor phase in order to determine how it can be applied in the employer liability and public liability insurance claims areas particularly in relation to:
- Personal Injury data and information
- Effects of legal costs and litigation processes on insurance costs
- Current claims compensation arrangements and cost of claims
- Impact of unlawful activity on insurance sector
The Working Group is also considering the impact of the cost of insurance on the competitiveness of particular business sectors, the impact of health and safety issues on the cost of insurance and other market issues.
The Working Group is continuing to meet on a regular basis to examine issues related to Employer Liability and Public Liability insurance. The Working Group has held extensive consultations with a range of stakeholders including the Hotels Federation of Ireland, IBEC, ISME, the Vintners’ Federation of Ireland (VFI), the Licensed Vintners’ Association (LVA), the Retail Grocery Dairy & Allied Trades Association (RGDATA), Chambers Ireland and the Health and Safety Authority, the Construction Industry Federation (CIF) and the Law Society of Ireland. A submission has also been received from the Irish Farmers’ Association (IFA). I would invite further submissions from interested parties to insurance@finance.gov.ie.
It is envisaged that the final results of the second phase will take the form of an addendum to the existing Report. As with the first phase, the aim is for all relevant bodies and stakeholders to work together in order to deliver fairer premiums for businesses without unnecessary delay.
As it is likely that public liability and employer liability risks are a factor in the rising cost of insurance for marts, any recommendations emerging from this review should be of relevance to the mart sector.
149. Deputy Pearse Doherty asked the Minister for Finance his plans to rework the ten-year average growth calculation in view of his decision to limit ability to spend in future years not being necessary under the fiscal rules (details supplied); and if he will make a statement on the matter. [25554/17]
View answerThe expenditure benchmark is designed to ensure that spending increases are made on a sustainable basis and not based on one-off factors. In other words, the objective of the benchmark is to avoid repeating the mistakes of the past which ultimately resulted in the collapse of the public finances in Ireland.
The 26 per cent growth rate recorded in 2015 was a one-off, largely caused by the on-shoring of highly mobile intellectual property assets. These assets could just as easily be moved off-shore at the stroke of a pen.
To base budgetary policy on such a one-off factor would be highly irresponsible and risk repeating the mistakes of the past.
This one-off, 26 per cent growth rate is contaminating the ten-year average growth figure and it is appropriate that adjustments are made. In this context, my Department's estimate (set out in Budget 2017) is essentially based on taking the average of the preceding year (2014) and the succeeding year (2016) in order to compile an appropriate ten-year average. This is effectively the same approach adopted by the European Commission in its assessment of Ireland's Stability Programme and the way it has adjusted the reference rate to be used in the expenditure benchmark calculation for 2018.
I would point out that compliance with the fiscal rules also takes into account the structural balance pillar. The Government's objective since exiting the corrective arm of the Stability and Growth Pact has been to achieve a structural balance by 2018. This remains the Government's target.
In summary, the Government will not jeopardise the sustainability of the Irish public finances and the ongoing economic recovery by adopting an inappropriate budgetary stance.
150. Deputy Alan Kelly asked the Minister for Finance the specific actions he has taken under the the Climate Action and Low Carbon Development Act 2015 to contribute to the national mitigation plan. [25693/17]
View answerMy Department is participating in a whole-of-Government approach led by the Minister for Communications, Climate Action and Environment, in respect of the formulation of the National Mitigation Plan.
Sectoral mitigation proposals have been put forward by Departments with sectoral responsibility, as follows:
1. Department of Communication, Climate Action and Environment
2. Department of Housing, Planning, Community and Local Government
3. Department of Transport, Tourism and Sport
4. Department of Agriculture, Food and the Marine
My Department has been involved in discussions relating to the preparation and fiscal implications of these measures at Working Group, Senior Officials Group and Cabinet Committee levels. However, it should be noted that the Department of Finance does not have a responsibility under the terms of the Act for the submission of any specific sectoral measures for the Plan. The Department of Finance will be contributing to the fiscal and economic assessment of the specific measures proposed by other Departments, as appropriate.
151. Deputy Anne Rabbitte asked the Minister for Finance if persons here who are also in receipt of a pension from another country, that is, a state pension, occupational pension or private pension, and may also be in receipt of other retirement benefits, are liable for tax; and if he will make a statement on the matter. [25740/17]
View answerPension income is subject to income tax in the same way as other income. Irish pension income is taxable under Schedule E, as set out in section 19 of the Taxes Consolidation Act (TCA) 1997, and foreign pension income is taxable under Schedule D, as provided for in section 18 of the TCA.
An individual who is tax resident in Ireland is liable to Irish tax on his or her worldwide income and gains in the tax year. Where appropriate, a credit against Irish tax may be due under the terms of a double taxation agreement in respect of foreign tax paid on foreign source income and gains that are assessable here. The level of credit available will depend on the source of the income, and the terms of the individual double taxation agreement.
Schedule E income, such as Irish pensions and employment income, is subject to tax under the PAYE system, with the appropriate credits applied and tax deducted at source. Schedule D income, such as foreign pensions, is not taxed under PAYE and so must be declared separately to Revenue, and the appropriate tax paid over. Taxpayers who are tax resident in Ireland and who have foreign source income which has not been declared to Revenue should arrange, without delay, to provide Revenue with the necessary details so that their tax affairs can be regularised.
A taxpayer who has income taxed under the PAYE system (such as an Irish pension) and who also has non-PAYE income (such as a foreign pension), may, where the non-PAYE income does not exceed €5,000 for 2016 (or €3,174 for prior years), request Revenue to reduce their annual PAYE tax credits and rate band entitlements, so that the tax on their non-PAYE income is deducted by their pension provider or employer. Any such taxpayer is not considered a chargeable person and is not required to file an annual tax return. A taxpayer whose non-PAYE income exceeds this amount, or who does not request Revenue to reduce their tax credits to take account of that income, is a chargeable person and must file an annual tax return declaring the income.
I would point out that individuals aged 65 and over can avail of the age exemption limits. In order to qualify for this exemption a single individual’s income in the year of assessment must be less than €18,000 or in the case of a married couple or civil partners, €36,000. Marginal relief is provided where an individual’s total income exceeds the exemption limit applicable to that individual, but does not exceed a sum equal to twice that limit. In addition, income from State pensions, from Ireland and other sources, is not liable to the Universal Social Charge.
152. Deputy John Curran asked the Minister for Finance the revenue raised in 2016 and to date in 2017 through increased enforcement and sanction of fuel laundering further to the commitment on page 34 in the programme for Government; and if he will make a statement on the matter. [25782/17]
View answerThe serious threat that fuel fraud poses to legitimate business, to consumers and the Exchequer is recognised and I am advised by Revenue that tackling this criminal activity has been one of their priorities over recent years.
Revenue’s comprehensive strategy for combatting the illegal fuel trade has included the introduction of stringent new supply chain controls and reporting requirements for fuel transactions, to minimise the scope for fraud. It also included a rigorous programme of enforcement action, underpinned by legislative changes that I have introduced over a number of Finance Acts to strengthen Revenue’s powers for dealing with this kind of fraud. In addition, Revenue and HM Revenue and Customs in the United Kingdom undertook a joint initiative to find a new fiscal marker for use in marked fuels, which was introduced in Ireland and the United Kingdom from the beginning of April 2015.
Revenue works closely with An Garda Síochána in acting against fuel fraud, and the relevant authorities in the State work closely with their counterparts in Northern Ireland, through cross-border enforcement structures, to tackle the organised crime groups that are responsible for a large proportion of this criminal activity. Revenue also works in close cooperation with the relevant authorities in other jurisdictions, the European Anti-Fraud Office and other international bodies and agencies in the ongoing programmes of action at international level to combat the illicit fuel trade.
Between 2013 and 2016, the quantity of auto diesel released for consumption increased by 24 per cent, but the quantity of marked gas oil fell by 5 per cent. In the first four months of 2017, auto diesel released for consumption showed a rise of 2.2 per cent, while marked gas oil was lower by 5.2 per cent. While there is a range of considerations influencing the levels of demand for these fuels, Revenue advises me that the combination of rigorous supply chain controls and enforcement action on their part has diminished the availability of marked gas oil for laundering. This is borne out by the fact that the oil laundry uncovered in December 2016, in County Monaghan, was the first detected since 2014.
Revenue has undertaken research to assess the impact of the strategy to combat the illegal fuel trade. Revenue published an analysis (available at http://www.revenue.ie/en/about/publications/oil-market-analysis.pdf) in January 2015 of oil market trends and, on the basis of a comparison of extrapolated pre-2013 trends with actual results for 2013 and 2014, estimated that the strategy pursued in recent years may have saved the Exchequer between €150m to €200m in 2014. Updated analysis published by Revenue (available at http://www.revenue.ie/en/about/publications/oil-market-2017.pdf) in April 2017 shows that the impact of Revenue’s compliance initiatives may be contributing to a further uplift in receipts from diesel of up to €35m per annum (based on 2016 levels of trade).
I understand that the industry view is that the measures implemented to date have been successful in significantly curtailing fuel fraud in Ireland. I am advised that Revenue conducted a national random sampling programme in January 2016, to obtain an updated picture on the extent of the fuel laundering problem. The programme involved a random sample involving nearly one in ten of the 2,500 holders of auto fuel trader licences. Road diesel samples were taken from all of the traders in the programme and tested for the presence of the new marker. No evidence of the new marker was found in any of the fuel samples tested. The random sampling programme was repeated in 2017 and, again, no evidence of the marker was found. The results of the sampling programmes are available at http://www.revenue.ie/en/about/publications/oil-market-2017.pdf. This represents further persuasive evidence that the strategy pursued in recent years has been successful in addressing and curtailing significantly the fuel fraud problem.
I am satisfied that Revenue’s work against fuel fraud has achieved a considerable degree of success, and am assured that action in this area will continue to be a high priority for them. In addition, I can assure the Deputy that full consideration will be given to any further proposals for legislative change that may be put forward by Revenue which would enhance their capacity to deal effectivity with fuel fraud and criminality.
153. Deputy Thomas P. Broughan asked the Minister for Finance the expected net effect of measures carried over for 2018 as a result of budget 2017 measures; how that is accounted for in the fiscal space projections; and if he will make a statement on the matter. [25810/17]
View answerIt is currently estimated that there will be a total negative carryover into 2018 as a result of Budget 2017 tax measures in the region of €170 million. It is important to point out that the exact impact of carryover will be reviewed as part of the normal Budgetary process, as there are a lot of moving parts to be considered, such as economic growth, take up of various schemes and specific tax relevant factors, which could impact on the expected return from the measures. A summary of these measures and their impact is set out in the table.
|
Tax-Head |
Carryover effect €m |
|
Income Tax |
-69 |
|
Universal Social Charge |
-55 |
|
Capital Acquisition Tax |
-3 |
|
Excise Duties |
-1 |
|
Capital Gains Tax |
+1 |
|
Section 110 and Fund Changes* |
-15 |
|
Tackling offshore tax evasion* |
-30 |
|
Total |
-172 |
*The carryover is calculated as the difference between the effect on a full year and that on 2017. For example, in relation to Section 110, it was estimated at the time of Budget 2017, that these changes would yield €50 million in 2017 and €35 million is a full year, which equates to a negative €15 million carryover into 2018. While the yield from tackling offshore evasion would result in one-off yield in 2017 of €30 million, and therefore represent a negative carryover of €30 million in 2018.
The carryover impact of Budget 2017 current expenditure measures is outlined on Page 36, Table 9 of the Expenditure Report 2017. Based on the estimate at that time, there is an additional cost of €473m arising in 2018 from the carryover impact of certain Budget 2017 expenditure measures. This amount would need to be met from the available fiscal space or from reprioritisation of expenditure.
Finally, it should be noted that carryover costs impact the fiscal space in the year in which they arise.
154. Deputy Thomas P. Broughan asked the Minister for Finance the expected revenue that would be generated from the introduction of an aggregate levy of €2.50 per tonne on aggregates extracted from the ground such as rock, sand and gravel; and if he will make a statement on the matter. [25811/17]
View answerIt is inherently difficult to estimate the revenue the introduction of any new tax proposal would yield, however, the introduction of an aggregate levy was examined and presented in a paper to the Tax Strategy Group in 2015. This paper, TSG15/06 Energy and Environmental Taxes and Vehicle Registration Tax, is available my Departments website.
At that time is was estimated that a levy of €2.50 per tonne could yield €79m per annum. Should such a levy be introduced it would provide a financial incentive for increased recycling within the construction industry and which would reduce the potential revenue such a measure may yield.
155. Deputy Thomas P. Broughan asked the Minister for Finance the expected revenue yield that would result from an increase of 5 cent per litre in excise on diesel; and if he will make a statement on the matter. [25812/17]
View answer156. Deputy Thomas P. Broughan asked the Minister for Finance the expected cost of using the diesel rebate scheme to offset the proposed 5 cent per litre increase in excise on diesel for commercial transport; and if he will make a statement on the matter. [25813/17]
View answerI propose to take Questions Nos. 155 and 156 together.
I am informed by Revenue that the expected yield from an increase in Excise on diesel of five cents per litre is estimated at €123m, as indicated in the Ready Reckoner on the Revenue website: http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf.
Section 99A of the Finance Act 1999 (inserted by Section 51 of the Finance Act 2013) provides for a repayment to qualifying road transport operators of part of the mineral oil tax paid on the auto-diesel purchased within the state for use in the course of business. The amount of the repayment varies in accordance with the average price at which auto-diesel is available for purchase during a repayment period with the repayment only kicking in when the price of a litre of diesel rises above €1.23 at the pumps.
I am advised by Revenue that it is tentatively estimated that the cost of using the diesel rebate scheme to offset a proposed five cents increase in Excise on diesel would be in the region of €20m assuming all of the five cent increase qualifies for the rebate.
157. Deputy Michael McGrath asked the Minister for Finance the representation Ireland has in the governance and management of the World Bank; and if he will make a statement on the matter. [25820/17]
View answerThe World Bank Group comprises five institutions: the International Bank for Reconstruction and Development (IBRD); the International Development Association (IDA); the International Finance Corporation (IFC); the Multinational Investment Guarantee Agency (MIGA); and the International Centre for the Settlement of Investment Disputes (ICSID).
The Minister for Finance is Ireland’s representative on the Board of Governors at the World Bank Group and this mirrors the position of Ministers from other countries represented at the World Bank.
Ireland is a member of a World Bank Group Constituency which also includes Canada and eleven English-speaking Caribbean Countries. Canada permanently holds the post of Executive Director for the Constituency.
Ireland has two permanent representatives in the Constituency Office. Mary O’Dea, seconded from the Central Bank, has served as Senior Advisor since 2014, while Alex Lalor, seconded from the Department of Finance, has served as an Advisor in the Constituency Office since February 2016. Our Advisors work closely with the Department, with Irish Aid and Enterprise Ireland as well as other Government Departments and agencies, as appropriate, to promote Irish interests in the wider context of their contribution to the work of the World Bank.
Ireland's voting power in the International Development Association (IDA) is determined by our contributions to IDA replenishments, relative to other members. Ireland's voting power in each of the other four constituents of the World Bank Group is determined mainly by our relative share of the Capital stock in the relevant organisation. Our current voting power in the constituent organisations is as follows
IBRD, 0.36%
IFC, 0.08%
MIGA, 0.4%
IDA, 0.36%
158. Deputy Michael McGrath asked the Minister for Finance the representation Ireland has in the governance and management of the European Bank for Reconstruction and Development; and if he will make a statement on the matter. [25821/17]
View answerThe Minister for Finance is Ireland’s representative on the Board of Governors at the European Bank for Reconstruction and Development (EBRD). This mirrors the position of other countries which are members of the EBRD.
Ireland shares a Constituency with Denmark, Lithuania and Kosovo in the EBRD. Denmark, Ireland and Lithuania have an agreement in place to rotate the three positions within that Constituency Office, namely: Director, Alternate Director and Advisor. Kosovo is currently not party to the agreement and it does not have a representative at the Office at this time but its interests are handled by the three positions in the Constituency.
Denmark had the largest shareholding (1.2%) in the Constituency and under the Constituency Agreement it, therefore, always has either the Director or Alternate Director positions. Ireland has the second largest shareholding (0.3%) and we rotate between the Director, Alternate Director and Advisor positions while Lithuania with the third largest shareholding (0.1%) only rotates between Alternate Director and Advisor. The rotation occurs every three years and the dates are set out in the Constituency Agreement. The Agreement also sets out that the three countries equally contribute to finance the Advisor position, but the Director and Alternate Director positions are fully paid for by the EBRD.
The next rotation occurs on 1 May of 2018. The current Danish Director will be replaced by an Irish Director while the Lithuanian Alternate Director will be replaced by a Dane and the Irish Advisor will be replaced by a Lithuanian. Each will be in place for three years until the next rotation on 1 May 2021.
As provided under the EBRD governance rules, the Irish Director is nominated by the Minister for Finance in his role as Governor for Ireland at the EBRD.
159. Deputy Catherine Murphy asked the Minister for Finance the airports and aerodromes with customs clearance; the number of visits that have been made by customs and excise to airports other than those with a permanent customs presence in 2014 to 2016, inclusive; the number of notified and unnotified visits; and if he will make a statement on the matter. [25863/17]
View answerI am advised by Revenue that the three main Customs Airports (Dublin, Shannon and Cork) have permanently assigned officers in attendance. Goods and passengers arriving from 3rd Countries (countries outside the EU) may present for Customs clearance at these three airports. Decisions to undertake a visit or intervention at other aerodromes and airports, which are not authorised to receive flights from outside the EU are based on Revenue's assessment of risk, having regard to a range of factors, including intelligence. Such visits are normally unannounced, but circumstances may require that arrangements are made to ensure personnel and records are available. A table detailing the statistical information requested follows:
|
Aerodrome visits by Customs Jan 2014 to Dec 2016 |
||
|
Aerodrome/Airport |
Announced |
Unannounced |
|
Abbeyshrule |
0 |
12 |
|
Baldonnell |
0 |
0 |
|
Ballina Airfield |
0 |
1 |
|
Ballinabranagh Carlow |
0 |
3 |
|
Ballyboe Airstrip |
0 |
1 |
|
Ballyboy |
3 |
1 |
|
Ballyvarry Airfield |
0 |
1 |
|
Ballyvaloo, Wexford |
0 |
0 |
|
Belmullet Airfield |
0 |
9 |
|
Birr Airfield |
0 |
2 |
|
Clonakilty |
3 |
0 |
|
Clonbollogue Airfield |
0 |
3 |
|
Coolnakilly, Wicklow |
0 |
0 |
|
Coonagh |
0 |
5 |
|
Donegal Airport |
0 |
29 |
|
Dowth Hall |
3 |
0 |
|
Dunboyne |
2 |
1 |
|
Enniskeane |
3 |
0 |
|
Fermoy |
3 |
0 |
|
Fethard Airstrip |
0 |
1 |
|
Galway Airport |
0 |
13 |
|
Gowran Kilkenny |
0 |
3 |
|
Granard |
0 |
3 |
|
Ilas Field, Taghmon |
0 |
0 |
|
Inis Meáin |
0 |
0 |
|
Inis Mór |
0 |
2 |
|
Inis Óirr |
0 |
0 |
|
IWAK (Ireland West Airport Knock) |
0 |
404 |
|
Kerry |
0 |
352 |
|
Kilamaster Carlow |
0 |
4 |
|
Kilkenny |
1 |
11 |
|
Killenaule Airstrip |
0 |
1 |
|
Killoughrim, Enniscorthy |
0 |
0 |
|
Kilrush |
11 |
0 |
|
Laytown |
3 |
0 |
|
Limetree Laois |
0 |
6 |
|
Lissenhall Airstrip |
0 |
1 |
|
Magney Carlow |
0 |
3 |
|
Midland Heli Abbeyleix |
0 |
3 |
|
Miltownpass |
0 |
2 |
|
Monasterevan |
0 |
1 |
|
Morriscastle, Wexford |
0 |
0 |
|
Moyglare |
1 |
2 |
|
Moyne Airstrip |
0 |
1 |
|
Mullinahone Airstrip |
0 |
1 |
|
Na Minna, Indreabhán,Connemara |
0 |
17 |
|
Navan Airfield |
5 |
2 |
|
Newcastle, Wicklow |
0 |
0 |
|
Portlaoise |
0 |
3 |
|
Rathcoole |
6 |
0 |
|
Scurlogstown |
1 |
2 |
|
Sligo Airport Strandhill |
0 |
19 |
|
Taggarts |
1 |
1 |
|
Tibohine |
0 |
11 |
|
Trim Airfield |
5 |
3 |
|
Trimblestown |
1 |
2 |
|
Warrens Fields, Gorey |
0 |
0 |
|
Waterford Airport |
0 |
52 |
|
Weston Aerodrome |
0 |
41 |
|
Grand Total |
52 |
1035 |
