Tuesday, 11 Jul 2017

Written Answers Nos. 116-130

Job Creation

Questions (116)

Maurice Quinlivan

Question:

116. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the estimated timeframe and completion date for the review of the Succeed in Ireland initiative. [32722/17]

Written answers

Tánaiste and Minister for Jobs, Enterprise and Innovation

As was announced previously, my Department will be commissioning an independent review of the Succeed-in-Ireland programme. That review, which will be carried out after details of the initiative’s full and final costs are available, will equip us with a thorough understanding of the programme’s results and its contribution to employment generation in the State.

The terms of reference for the review will be finalised shortly. My Department is completing the examination of all the responses to the public consultation, a process which will help to shape the final text.

Employment Rights

Questions (117)

Brian Stanley

Question:

117. Deputy Brian Stanley asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the measures her Department is putting in place to stop the practice of agencies operating in the construction sector using bogus self employment. [32778/17]

Written answers

Tánaiste and Minister for Jobs, Enterprise and Innovation

Apart from significant losses to the Exchequer that can arise from cases of so-called bogus self-employment, the practice has serious implications from an employment rights perspective. In this respect, it is important that individuals are correctly designated regarding their employment status so that those who ought to be designated as employees are not deprived of their employment rights. This is particularly the case for vulnerable workers who may not feel in a position to object to certain arrangements.

Ireland has a well-resourced labour inspectorate, which forms part of the Workplace Relations Commission (WRC) and there are existing mechanisms in place to determine the employment status of individuals or groups.

WRC Inspections are undertaken on the basis of risk analysis which identifies certain sectors, as a result of complaints received and on a routine basis. Where the WRC inspection service discover or issues are raised in relation to bogus self-employment or bogus sub-contracting, they are forwarded to the Revenue Commissioners and/or the Department of Social Protection (Scope Section) for investigation either solely by the recipient, or jointly with the Workplace Relations Commission.

In most cases it will be clear whether an individual is employed or self-employed. Where there is doubt in relation to the employment status of an individual the relevant Departments and Agencies will have regard to the Code of Practice for Determining Employment or Self-Employment Status of Individuals. This Code was drawn up and agreed in 2007 by the relevant Government Departments with ICTU and IBEC.

Where an individual believes they are being deprived of employment rights applicable to employees they may refer a complaint to the WRC where the matter can be dealt with by way of mediation or adjudication leading to a decision that is enforceable through the District Court. WRC Inspectors can also be asked to investigate certain breaches. Complaints can be made on a single complaint form available at the WRC’s website www.workplacerelations.ie.

The WRC’s Customer Service Section, which provides information to both employers and employees in relation to employment and industrial relations rights and obligations, can be contacted at Lo-call: 1890 80 80 90 or 059-9178990.

Foreign Direct Investment

Questions (118)

Thomas P. Broughan

Question:

118. Deputy Thomas P. Broughan asked the Minister for Finance further to Parliamentary Question No. 32 of 29 June 2017, the tax reliefs not included in that reply; and if he will make a statement on the matter. [32137/17]

Written answers

Minister for Finance

I understand that Parliamentary Question No. 32 of 29 June 2017, answered by my colleague, the Minister for Jobs, Enterprise and Innovation, concerned the annual cost to the State of securing new jobs through foreign direct investment.

Tax reliefs are generally available to all undertakings and not specifically targeted at FDI companies. Therefore it is not possible to separately identify the tax reliefs claimed by such companies.

One tax relief that may be of interest to companies providing FDI to Ireland is the Special Assignee Relief Programme (SARP). However, it may or may not be utilised by FDI companies and therefore its cost cannot be directly linked to the cost of securing foreign direct investment jobs.

The Revenue Commissioners produce an annual report on the cost and uptake of SARP, which includes detail on its operation as well as an analysis of the number of jobs supported by the scheme. These reports are available at the following link: http://www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/special-asignee-relief-programme.aspx.

SARP reduces the cost to employers of assigning key individuals in their companies from abroad to take up positions in the Irish based operations of the employer. In Budget 2017 SARP was extended until the end of 2020 in order to provide certainty for potential investors in Ireland following on from the UK vote to leave the European Union. The scheme gives qualifying key assignees that are appointed to roles in Ireland, an exemption from income tax on 30% of salary in excess of €75,000 for a maximum of 5 years. However, USC and PRSI generally remain chargeable on all of the relevant income.

In order to qualify for SARP, an assignee must have been employed by the company in a country with which Ireland has a Double Taxation Agreement (DTA) or a Tax Information Exchange Agreement (TIEA) immediately prior to their assignment to Ireland. They must be tax resident in Ireland in the relevant tax year in order to qualify for SARP and must have been employed abroad by the relevant employer for a minimum of 6 months.

Tax Rebates

Questions (119)

Timmy Dooley

Question:

119. Deputy Timmy Dooley asked the Minister for Finance the estimated cost of extending the VRT rebate for electric, electric hybrid and plug-in hybrid cars in each of the years from 2018 to 2022. [32186/17]

Written answers

Minister for Finance

I am informed by Revenue that the cost of the Vehicle Registration Tax (VRT) rebate for electric, electric hybrid and plug in hybrid cars in 2017 is estimated at €15 million for the year. There is no basis available to Revenue on which to forecast possible future growth, so assuming that there would be no change in registration numbers in each of the years 2018 to 2022 the estimated cost would be €15 million per annum.

Living City Initiative

Questions (120)

Mattie McGrath

Question:

120. Deputy Mattie McGrath asked the Minister for Finance if he will extend the living city initiative to all provincial towns to incentivise persons to move back into town centres to help revitalise towns; and if he will make a statement on the matter. [32316/17]

Written answers

Minister for Finance

The Living City Initiative was enacted in the Finance Act 2013 and commenced on 5th May 2015. The Initiative was extended beyond the original planned pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analysis.

To date, take-up of the scheme has been lower than anticipated. A review was undertaken last year by my officials and this was published in the Report on Tax Expenditures (October 2016) that was released on Budget Day.

In light of the findings in the report, and in consultation with the relevant councils and the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs, I announced a number of changes to the scheme in Budget 2017 to make the scheme more attractive and effective. The aim is to get the design of the initiative right and working in an effective manner. It is important that the underpinning scheme is made more effective, as until that has been achieved, extension of eligibility for it to other towns or cities would be largely meaningless. Accordingly, I do not currently propose to extend the scheme beyond the present locations.

The Deputy may wish to note that the recently launched "Realising our Rural Potential: Action Plan for Rural Development" by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs contains a detailed list of actions and priorities with a view to revitalising rural Ireland generally. This effort is being led by the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs in conjunction with Ministers and officials from other Departments, as well as the Local Authorities and a range of other stakeholders.

A variety of actions included in this plan aim to assist in improving rural towns and making rural Ireland a better place to live. These include the Town and Village Renewal Scheme, under which funding of up to €12 million per annum is available to revitalise rural towns and villages, while there is also a commitment to develop and pilot an initiative to encourage increased residential occupancy in town and village centres.

Furthermore, the Home Renovation Incentive (HRI) provides for an income tax credit for homeowners or landlords of residential property, who carry out repair, renovation or improvement works on their property. It provides for tax relief by way of an income tax credit at 13.5% of qualifying expenditure. Qualifying work must cost a minimum of €5,000 (including VAT). The maximum qualifying cost for the purpose of the incentive is (€30,000 including VAT), which equates to a maximum tax credit of €4,050. The tax credit is payable over the two years following the year in which the work is paid for. The Deputy may be aware that the incentive was extended for a further two years in the last Budget.

Tax Code

Questions (121)

Pearse Doherty

Question:

121. Deputy Pearse Doherty asked the Minister for Finance the estimated additional revenue that would be raised by increasing the bank levy by ten percentage points and by 10%; and if he will make a statement on the matter. [32106/17]

Written answers

Minister for Finance

In Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology. This took place during 2016, including a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding levy rate, in order to protect the €150 million annual yield. Minister Noonan committed to the introduction of a rolling two-year series of base years which will introduce a new base year of 2017 for calculating the levy in 2019 and 2020, and a new base year of 2019 for calculating the levy in 2021. The levy rate may require updating when the base year changes to protect the €150 million annual yield.

The current rate is 59% of the amount paid in DIRT by accounts within each institution in 2015.

Increasing the current rate by 10 percentage points would give a rate of 69%. If everything else was held equal, a rate of 69% would give an approximate yield of €175 million.

Increasing the current rate by 10% would give a rate of 64.9%. If everything else was held equal, a rate of 64.9% would give an approximate yield of €165 million.

NAMA Property Sales

Questions (122)

Mick Wallace

Question:

122. Deputy Mick Wallace asked the Minister for Finance the number of sites and units NAMA has sold to a charity (details supplied) in each of the years from 2010 to 2016 and to date in 2017; the costs associated with same; the type of sale, private treaty or through National Asset Residential Property Services, NARPS; and if he will make a statement on the matter. [32118/17]

Written answers

Minister for Finance

The Deputy will be aware that NAMA, through its continued engagement with the Department of Housing, Planning & Local Government, has played a very important role in facilitating, on a commercial basis, the supply of social housing from within its existing portfolio.

To end-June 2017, NAMA had delivered 2,398 properties for social housing use to both local authorities and approved housing bodies. Of this, 590 units have been delivered to Clúid. This excludes any units which may also have been delivered by NAMA debtors or receivers through Part V provision.

Of the 590 units delivered to Clúid, 202 properties were by way of lease from NARPS, with the balance of 388 units delivered through direct sale by NAMA debtors or receivers. All such transactions are conducted on a commercial basis in line with NAMA’s legislative mandate. NAMA is not in a position to provide commercially sensitive information such as costs associated with these transactions.

The annual breakdown of units delivered to Clúid is provided in the following table. A full breakdown of NAMA delivery of social housing, by area and approved housing body, is published quarterly at https://www.nama.ie/social-initiatives/social-housing/.

Year	No. of units delivered to Clúid
2017	0
2016	45
2015	138
2014	189
2012-2013	160
2011	58
Total	590

Financial Services Regulation

Questions (123)

Pearse Doherty

Question:

123. Deputy Pearse Doherty asked the Minister for Finance the estimated saving that would accrue from moving the entire cost of regulation of the financial sector on to the industry; and if he will make a statement on the matter. [32121/17]

Written answers

Minister for Finance

The Central Bank's total funding requirement for financial regulation activity is determined on an annual basis by the resources required to discharge its legal responsibilities under domestic and EU law. Section 32D and 32E of the Central Bank Act 1942, as amended, provide that the Central Bank Commission may make regulations relating to the imposition of levies and fees on the financial services sector in respect of the recoupment of the costs of financial regulation.

As it stands, the financial services industry currently funds 50% of the costs incurred by the Central Bank for financial regulation, with certain exceptions including the banks which had participated in the Eligible Liabilities Guarantee (ELG) Scheme, namely AIB, Bank of Ireland and Permanent TSB, which are required to fund 100% of the Central Bank's regulatory costs. Credit Unions currently contribute approximately 8% to the cost of their regulation.

The current 50% funding arrangement translates into a corresponding reduction in the annual surplus remitted by the Central Bank to the Exchequer. The total cost of financial regulation in 2016 was approximately €150 million; industry levies were €79m and subvention was €70 million. Therefore in the order of €70 million of the Central Bank's 2016 surplus income was redirected to make up for the difference between the costs of regulation and the funding received from the financial services industry, which would otherwise have been surrendered to the Exchequer.

However, following on from a joint Department/Central Bank Public Consultation on funding the costs of financial regulation, the Minister for Finance approved an increase to 65% of the costs of financial regulation being borne by industry, with certain exceptions (for instance, the ELG banks and credit unions will maintain their existing funding arrangements, among other exemptions). This will be implemented in the 2017 industry funding levy regulations. The arguments in favour of a move to a funding model where industry bear a greater proportion of the costs of financial regulation were articulated in the public consultation paper. These include, the scale of resources devoted to regulation, the escalating costs that are borne by the taxpayer, and the changing landscape of the industry where consumers are located both here and abroad. My Department and the Central Bank are in the process of finalising a joint Feedback Statement to the Public Consultation which will be published in Q3 2017.

Therefore, the 2017 industry funding levies will recoup 65% of the costs of financial regulation from industry (with certain sectoral exceptions). This means that the subvention from the Central Bank will amount to approximately 35% of the total cost rather than 50%. What this translates to in monetary terms will be determined by the resources required by the Bank to discharge its legal responsibilities during the year.

Revenue Commissioners Staff

Questions (124)

Pearse Doherty

Question:

124. Deputy Pearse Doherty asked the Minister for Finance the estimated amount the tax take would increase by in 2018 by hiring 125 qualified Revenue Commissioners staff to tackle black market activity and tax evasion (details supplied). [32122/17]

Written answers

Minister for Finance

I am advised by Revenue that Revenue's Comprehensive Review of Expenditure 2014 estimated that by increasing audit staffing resources by c.100 staff an additional Exchequer yield of €50m per annum could be achieved.

It was estimated that by increasing staff on compliance projects such as oils, tobacco and alcohol by 100 could raise €20m per annum. On this basis it is estimated that increasing staff on compliance projects such as oils, tobacco and alcohol by 25 could raise €5m per annum.

It was noted that the investment in the training and development of a Revenue auditor or investigator can take up to three years, depending on previous relevant experience. Therefore, it is not possible to accurately estimate the additional yield that would arise in 2018 from the recruitment of new staff in 2018.

Revenue undertakes a range of risk management interventions to target and confront those who do not comply, including tax evasion and black market activity. The objective is that people are deterred from filing inaccurate returns and from engaging in shadow economy activity and smuggling. The range of interventions has increased in recent years. Interventions include appraisals, aspect queries, profile interviews, assurance checks, enforcement, investigation and prosecutions, as well as audits. The appropriate intervention depends on the relevant risk. The average rate of return on each type of intervention varies depending on the intervention. In some types of interventions to tackle evasion and the black economy, such as enforcement, the focus is on the detection of drugs and fiscal smuggling where the direct Exchequer yield is not the immediate objective. It must also be recognised that Revenue has to prioritise its resources and must, for example, provide service for compliance, by making it easier and less costly to voluntarily comply.

In the preparation for the Estimates of 2015, 2016 and 2017, Revenue made business cases for additional resources. Over the Budgets of 2015, 2016 and 2017, they were provided with an increase of 266 (126, 50 and 90) in additional resources to deal with a wide variety of staffing requirements across audit and compliance functions, debt management functions, international tax, etc. This Government will continue to carefully consider any request by Revenue for additional resources.

Mortgage Arrears Proposals

Questions (125)

Michael McGrath

Question:

125. Deputy Michael McGrath asked the Minister for Finance if he or the Central Bank have changed policy on the use of the split mortgage restructuring method for mortgages in arrears in view of the recent High Court ruling involving persons and a bank (details supplied); and if he will make a statement on the matter. [32127/17]

Written answers

Minister for Finance

A comprehensive framework is now in place to address the mortgage arrears problem. One important part of the strategy is the ongoing Central Bank action to require banks to engage with their borrowers in mortgage difficulty and to formulate sustainable solutions to address cases of mortgage arrears. Within the remit of the Central Bank’s responsibilities for safeguarding stability and protecting consumers, its approach to mortgage arrears resolution is focused on ensuring the fair treatment of borrowers through a strong consumer protection framework and ensuring that lenders have appropriate arrears resolution strategies and operations in place.

The Code of Conduct on Mortgage Arrears (CCMA) is a key part of the Central Bank’s Consumer Protection Framework in this regard. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms with each borrower by reference to that borrower’s individual circumstances, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner by reference to that borrower’s individual circumstances.

Each regulated entity must consider the borrower’s situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA does not prescribe the solution which must be offered. Rather, the CCMA includes requirements to ensure that any alternative repayment arrangement agreed between a lender and borrower be appropriate and sustainable and based on a full assessment of the individual circumstances of that borrower.

Under the CCMA, a lender must explore all of the options for alternative arrangements offered by that lender and such alternative repayment arrangements may include a split mortgage. The Central Bank has also published guidelines on Sustainable Mortgage Arrears Solutions which provides guidance to supervisors as to the important factors to consider when assessing if the restructures implemented are in fact sustainable solutions for resolving distressed mortgage cases. Information relating to a range of restructure arrangements is provided, including split mortgages.

However, as the Deputy is aware, where it is not possible to agree sustainable solutions at a bilateral level, the personal insolvency framework has been significantly reformed over recent years to provide borrowers with more flexible and accessible statutory options to address unsustainable mortgage and other debts. In particular, where it is appropriate in the circumstances of the individual case, the Courts can now confirm a PIA proposal to address an unsustainable primary home mortgage debt even though the proposal is opposed by the mortgage creditor, provided that the arrangement will enable the creditor to recover the debts due to the extent that the means of the debtor reasonably permits. Therefore, the new insolvency framework now provides for a fairer balance between the legitimate interests of both creditors and insolvent debtors in the resolution of unsustainable mortgage debt situations.

Tax Credits

Questions (126)

Michael McGrath

Question:

126. Deputy Michael McGrath asked the Minister for Finance his plans to amend the qualifying rules for the fishers tax credit and the seafarers allowance in order that fishermen whose journey begins or ends within the State can avail of the relief; and if he will make a statement on the matter. [32129/17]

Written answers

Minister for Finance

Both the fishers tax credit and the seafarers allowance are already available to qualifying persons whose journeys either begin or end in the State. In the case of the fishers tax credit, relief is also already available to qualifying persons whose journeys begin and end in the State.

Section 472BA of the Taxes Consolidation Act 1997, which provides for the fishers tax credit, requires that a fisher spends at least 80 days at sea in a given year to avail of the credit. There is no impediment to fishers qualifying for the credit where voyages (a) begin and end or (b) only begin or only end in the State.

Section 472B of the Taxes Consolidation Act 1997 provides for the seafarers allowance in relation to voyages that begin or end outside the State where the seafarer is absent from the State for at least 161 days in a tax year. The incentive is intended to support the commercial international shipping sector and applies in relation to international voyages (including voyages to the UK) "solely for the trade of carrying by sea passengers or cargo for reward" (subsection (1)) but is not available in relation to "an employment the emoluments of which are paid out of the revenue of the State" (subsection (3)).

In relation to the possibility of extending relief to commercial seafarers whose voyages both begin and end in the State, I am not aware of a significant cohort of commercial seafarers spending large amounts of time away from home who would benefit from such an extension. However, I am willing to ask my officials to give due consideration to any further proposals the Deputy might have in relation to specific categories of seafarers who may not be currently eligible.

Tax Code

Questions (127)

Michael McGrath

Question:

127. Deputy Michael McGrath asked the Minister for Finance the options open to a person with a PRSA contract when drawing down the maximum amount of a tax-free lump sum and-or purchasing an annuity either before the PRSA contract matures or at the date of maturity; the position regarding the person's rights in this regard; and if he will make a statement on the matter. [32132/17]

Written answers

Minister for Finance

I am advised by Revenue that the relevant legislation setting out the treatment of PRSAs is contained in Chapter 2A of Part 30 of the Taxes Consolidation Act (TCA) 1997. Except in limited circumstances, benefits can not be drawn down until the individual is at least 60 years of age, as set out in section 787K of the TCA 1997.

The amount of lump sum that can be taken on retirement depends on the type of PRSA, and the rules of the individual scheme, as set out in section 787G(3)(a) of the TCA. For a PRSA linked to an occupational pension scheme into which Additional Voluntary Contributions (AVCs) have been made, the lump sum available is based on the scheme rules, the individuals length of service and their final earnings, with 150% of final salary being the maximum lump sum available based on 20 years service. For other PRSAs, on the first occasion that benefits are taken from the PRSA up to 25% of the fund may be taken as a retirement lump sum.

The maximum cumulative tax-free total of all retirement lump sums that an individual can take from all pension arrangements is €200,000. Any lump sums taken in excess of this cumulative life-time limit are subject to taxation at a rate of 20% on the next €300,000, and at the individual’s marginal income tax rate plus USC on any balance.

A PRSA from which retirement benefits have commenced is referred to as a vested PRSA, as defined in section 790D of the TCA 1997. The balance of the fund after the 25% lump sum may be retained in the PRSA, used to purchase an annuity, or to exercise the Approved Retirement Fund (ARF) options, subject to certain criteria.

An individual who retains the balance of a PRSA after payment of the retirement lump sum may then draw down from that balance as and when they choose. The amounts drawn down from a vested PRSA are generally treated as emoluments and are subject to tax under Schedule E at the individual’s marginal rate.

Tax Reliefs Data

Questions (128, 129)

John Curran

Question:

128. Deputy John Curran asked the Minister for Finance his plans for a national information campaign to inform persons on the way in which to claim tax back on medical and dental expenses, in view of the fact that many persons are missing out on refunds for their medical expenses; and if he will make a statement on the matter. [32154/17]

John Curran

Question:

129. Deputy John Curran asked the Minister for Finance the cost to the Revenue Commissioners in each of the years from 2012 to 2016 and to date in 2017 for medical and dental expenses refunds; and if he will make a statement on the matter. [32155/17]

Written answers

Minister for Finance

I propose to take Questions Nos. 128 and 129 together.

I am informed by Revenue that due to the timing of tax returns, 2014 is the most recent year for which complete data are available. Revenue received over 420,000 health expenses claims for 2014 at an estimated cost to the Exchequer of €146 million, which relates to a claims value of approximately €730m. The information for earlier years is published on the Commissioners’ webpage at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. Updates will be published shortly for 2015. These figures include claims for both medical and dental expenses. I am further advised that a separate breakdown of the estimated cost of tax relief for medical or dental expenses alone is not available.

Revenue actively encourages taxpayers to manage their tax affairs and regularly reminds them of their tax obligations and how to claim their entitlements including health expenses. Revenue makes taxpayers aware of their entitlements as regards tax relief for health expenses through various initiatives including:

- Advisory visits/outreach events: For example, in 2016 Revenue participated in 434 such events, which included hosting information stands at a range of local and national events and visits to some of the larger employers.

- Marketing campaigns including significant campaigns advertising the myaccount online service and poster campaigns in 1,100 medical centres and pharmacies throughout the country raising awareness of the tax relief for health expenses.

- Targeted marketing campaigns: For example, in 2016 Revenue:

- Wrote to 137,000 PAYE taxpayers who had made no change to their tax record in the previous four years to advise them to review their records to ensure they were claiming all their entitlements and to remind them of the four-year time limit for claiming a tax refund.

- Wrote to a further 42,000 PAYE taxpayers who had claimed health expenses in previous tax years to remind them to claim their health expenses for 2015 and advising of the most efficient way of claiming.

- Release of the RevApp free mobile phone application in October 2016, containing a Receipts Tracker functionality which assists taxpayers to manage their receipts for tax purposes, including health expenses.

- Participating in radio interviews on both national and local stations.

- Displaying health expenses claims entitlements prominently on its recently re-launched website www.revenue.ie.

In the third quarter of this year Revenue plans to undertake further initiatives to continue to encourage taxpayers to claim their entitlements including health expenses. I am satisfied that Revenue is taking and will continue to take appropriate initiatives to encourage taxpayers to claims their entitlements.

Fiscal Policy

Questions (130)

Pearse Doherty

Question:

130. Deputy Pearse Doherty asked the Minister for Finance his plans to establish a rainy day fund; and if he will make a statement on the matter. [32161/17]

Written answers

Minister for Finance

As part of the 2016 Summer Economic Statement, the Government announced its intention to establish a contingency reserve/rainy day fund with effect from 2019.

The crisis years clearly demonstrated that volatility in the economic cycle can be much more pronounced in Ireland due to the open nature of the Irish economy. As such, the rainy day fund would provide a prudent counter-cyclical buffer, with annual transfers from the Exchequer to the rainy day fund expected following the achievement of the Medium Term Budgetary Objective, projected to be next year.

The rainy day fund is currently under review and further information will be provided in the 2017 Summer Economic Statement, which is due to be published this week.