Written Answers Nos. 109-128
109. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the level of take-up of the Innovation Fund Ireland in each of the years since its establishment and to date in 2017; the number of jobs supported; and if she will make a statement on the matter. [34736/17]
View answerInnovation Fund Ireland is an Irish Government initiative designed to attract leading international venture capital fund managers to Ireland to compliment the domestic venture capital sector. Innovation Fund Ireland funding involved Enterprise Ireland and National Pension Reserve Fund (NPRF) investing together and separately. The NPRF has now been reconstituted as the Irish Strategic Investment Fund. The dual mandate of the ISIF – investment return and Irish economic impact – represents a new “double bottom line” approach to investing and will require all transactions to generate both risk adjusted commercial returns and economic impact in Ireland.
Enterprise Ireland and ISIF have committed up to €125m each to make commitments to international Venture Fund Managers. These funds commit to establishing a presence in the Irish market and agree to invest, at a minimum, the equivalent of Enterprise Ireland’s contribution, over the lifetime of the fund in Irish companies or companies with significant operations in Ireland. Enterprise Ireland issued two open competitive calls for proposals. In order to receive an investment through Innovation Fund Ireland, venture capital fund managers must meet, at a minimum, the following criteria to be considered for investment:
- An established global profile and network with a reputation for market leadership in venture capital investment.
- A proven track record of raising funds and generating superior returns for investors.
- A capacity to access high potential international investment opportunities with an investment team capable of attracting world-class entrepreneurs.
- An intention to establish a new and substantial presence in the venture capital market in Ireland and a willingness to invest a meaningful proportion of their venture capital fund in Irish companies or companies with significant Irish operations.
Enterprise Ireland, alongside the ISIF/NPRF, have made commitments to four Venture Capital funds including Sofinnova, Highland Venture Capital Europe and Lightstone Ventures. Two of these funds have ceased investing in new opportunities (having met their commitments to invest in Ireland) while the remaining two funds are activity looking for opportunities.
Separately the NPRF/ISIF made a number of commitments to other funds including Polaris and DFJ Esprit. The ISIF report to the Department of Finance and not my Department. Separately, the ISIF issued their economic impact report. http://www.ntma.ie/business-areas/ireland-strategic-investment-fund/
The latest figures available on Innovation Fund Ireland in terms of amount of investment, companies supported are at Table 1 (up to Q1 2017) and employment numbers at Table 2 (up to end 2016).
Table1- The levels of investment in Irish companies to end Q1 2017
|
Year |
No. Investments (IRL) |
Amount |
No. New Companies |
|
2013 |
2 |
€7,447,620 |
2 |
|
2014 |
3 |
€32,169,146 |
2 |
|
2015 |
12 |
€13,637,101 |
4 |
|
2016 |
5 |
€7,829,155 |
1 |
|
Grand Total |
22 |
€61,083,022 |
9 |
Table 2- The economic profile of the companies in receipt of investment as of year-end 2016
|
Type |
Direct IRL Employment (FTE) |
Turnover |
Exports |
|
IFI |
141 |
€44.6m |
€29.5m |
|
Grand Total |
141 |
€44.6m |
€29.5m |
110. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the amount of funding the Health and Safety Authority spent on all safety initiatives; the number of inspections it carried out in each of the years 2011 to 2016 and to date in 2017, in tabular form; and if she will make a statement on the matter. [34737/17]
View answerThe following sets out the number of inspections and investigations and spend on safety initiatives by the Health and Safety Authority (HSA) for the period 2011 - 2017
|
Year |
Inspections and Investigations |
|
Year |
Inspections and Investigations |
|
2011 |
15,340 |
|
2012 |
13,835 |
|
2013 |
12,244 |
|
2014 |
10,719 |
|
2015 |
10,880 |
|
2016 |
10,460 |
|
2017 – to 10 July |
5,458 recorded year to date 10 July 2017 |
|
Year |
Spend on Safety Initiatives |
|
Year |
Spend on Safety Initiatives |
|
2011 |
€1.567m |
|
2012 |
€1.907m |
|
2013 |
€1.595m |
|
2014 |
€1.154m |
|
2015 |
€1.776m |
|
2016 |
€1.297 m |
|
2017 to 10 July |
€400,000 estimated year to date of €1.53m proposed |
Health and Safety Authority Inspectors carry out inspections across all work sectors and work activities that come under the Safety, Health and Welfare at Work Act 2005 and the Chemicals Act 2008. Most inspections are targeted at the high risk sectors such as construction, agriculture, forestry, manufacturing, mines, quarries, transport of dangerous goods by road, or the chemical sectors. Other inspections can be part of a particular safety awareness campaign e.g. on manual handling, on slips, trips or falls or on compliance with the REACH Regulation.
The HSA produces a Programme of Work each year setting out its plan for all areas of its work, including inspection targets. The 2017 Programme of Work set a target of 11,100 inspections and investigations. To date (10 July 2017) the HSA has carried out 49% of its target number of inspections and investigations for the year.
111. Deputy Catherine Martin asked the Tánaiste and Minister for Jobs, Enterprise and Innovation further to Parliamentary Question No. 173 of 20 June 2017, the number of former Members who applied for board positions; and if she will make a statement on the matter. [34846/17]
View answerAs previously advised, no former TDs have been appointed to any State Boards under my Department's remit.
In relation to whether any former TD applied for a position on any of my Department's State Boards, my Department has bee advised by the Public Appointment Service (PAS) that all applications submitted to PAS are confidential and used only for the purpose of assessing suitability against the specified criteria when State Board vacancies are advertised. Therefore, the information requested by the Deputy is not available to my Department.
Full statistics on the State Boards process and number of applications are published and available on the stateboards.ie website.
112. Deputy Michael McGrath asked the Minister for Finance the status of the expected net profits arising from the wind down of the NAMA; the expected date of completion; and if he will make a statement on the matter. [34244/17]
View answer197. Deputy Michael McGrath asked the Minister for Finance the status of the planned wind-up of NAMA; the portfolio that is remaining; the current estimate of the timeframe; the estimated financial outturn from the wind up of NAMA; and if he will make a statement on the matter. [34288/17]
View answerI propose to take Questions Nos. 112 and 197 together.
I currently have no plans to wind down the Agency prior to, or beyond, its current expected time frame. It is too early to speculate whether NAMA will have made sufficient progress on its three primary business lines - ongoing deleveraging; Dublin Docklands SDZ programme; residential delivery funding programme - that could warrant consideration of a dissolution date other than 2020 as originally envisaged.
The Deputy will be aware that, in-mid 2014, my officials produced a report under Section 227 of the NAMA Act, assessing the extent to which NAMA to end-2013 had made progress toward achieving its overall objectives and whether the continuation of NAMA was necessary for the purposes of the Act. I am required under the NAMA Act to conduct a further Section 227 review of NAMA no later than as of end-2018. This review will assess the extent to which NAMA has made progress toward achieving its overall objectives and determine whether NAMA remains necessary having regard to the purposes of the Act. Given NAMA's progress to date and expectations of continued progress toward achieving its overall objectives, I anticipate that the next Section 227 report will also give consideration to the various strategic alternatives regarding NAMA's orderly wind-down.
Regarding the time frame currently envisaged, I would refer the Deputy to page 13 of the 2016 NAMA Annual Report which states that "NAMA expects that its deleveraging work will be mostly completed by 2018 and its focus over the period from 2018 to 2020 will be on completing its Dublin Docklands SDZ and residential delivery funding programmes".
To date, NAMA has redeemed €29.7 billion of its senior debt, 98% of the €30.2bn originally issued. NAMA fully expects to redeem all of its remaining €500m senior debt by end-2017. NAMA also expects to redeem its subordinated debt of €1.6 billion in March 2020 and to return a surplus to the State once its work is completed. In this regard, the 2016 Annual Report states that NAMA's continued strong performance since inception means that the NAMA Board expects to return a terminal surplus to the State – currently estimated at €3 billion - upon completion of its work, subject to favourable market conditions prevailing.
Finally, the most recent details on NAMA's remaining portfolio are available in the Agency's 2016 Annual Report and Financial Statements, published on 1 June 2017. This is available on the NAMA website via: https://www.nama.ie/about-us/publications/annual-reports/. Page 46 of the report provides details on NAMA's outstanding portfolio. NAMA’s carrying value of loans at end-2016 was €3.9 billion. I expect NAMA's Quarterly Report for Q1 2017, which will provide a further update on the portfolio, to be published in the coming weeks.
113. Deputy Niall Collins asked the Minister for Finance the amount of lending undertaken by the NPRF, National Pensions Reserve Fund, SME credit fund to date; the number of projects involved; the number of jobs supported; the percentage of applications approved; the way in which the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [34728/17]
View answer114. Deputy Niall Collins asked the Minister for Finance the amount of investment undertaken by the NPRF SME equity fund to date; the number of projects involved; the number of jobs supported; the percentage of applications approved; the way in which the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [34729/17]
View answer115. Deputy Niall Collins asked the Minister for Finance the amount of investment undertaken by the NPRF turnaround fund to date; the number of projects involved; the number of jobs supported; the percentage of applications approved; the way in which the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [34730/17]
View answerI propose to take Questions Nos. 113 to 115, inclusive, together.
The Ireland Strategic Investment Fund (ISIF) has advised me that the €450 million BlueBay SME Credit Fund has completed 27 loan transactions totalling approximately €369 million as at 31 March 2017.
The €292 million Carlyle Cardinal Ireland (CCI) SME Equity Fund, has completed 7 transactions as at 31 March 2017, with investments completed in Lily O'Briens, GSLS, Carroll Cuisine, Payzone, Learning Pool, AA Ireland and Abtran. The Fund has also recently announced an investment in Sam McCauley Chemists as its eighth transaction.
Better Capital Turnaround Fund
ISIF has advised that it was agreed not to extend the investment period of the Better Capital Turnaround Fund following its expiry in December 2014. In the context of improving market conditions, financial institutions and business owners experienced a much reduced need for restructuring capital investment into distressed businesses as compared with initial expectations. The Fund had been set up with a lifespan of two years, with the intention of investing in distressed firms but positive changes in the economy meant it did not complete any investments.
In addition to the foregoing, ISIF has committed to a number of initiatives to improve the delivery of funding to the SME sector, details of which are included below:
(i) BMS Finance Ireland which is a €30 million fund providing debt finance to high-growth Irish SMEs for working capital, contract wins, capital expenditure, acquisitions and management buyouts. BMS Finance Ireland is also backed by other investors.
(ii) Causeway Capital Partners I LP is a €50 million Dublin based private equity investment fund targeting fast-growing small and medium businesses in Ireland and Britain. ISIF is a cornerstone investor of the fund along with the European Investment Fund (EIF). To date, the company has completed significant investments in BB’s Coffee and Muffins, Bizimply and Celtic Linen.
(iii) Milkflex Fund is a €100 million fund which provides loans between €25,000 to €300,000 to dairy farmers in Ireland, who are suppliers to Glanbia Ingredients Ireland.
(iv) ISIF invested €30 million in equity in Finance Ireland. Finance Ireland’s overall strategic goal is to become Ireland’s leading broad based non-bank lender, with a particular focus on the SME sector.
(v) ISIF committed €45 million to the Muzinich Pan-European Private Debt Fund in May 2017 which, in turn, is targeting investment of €67.5 million in Irish SMEs.
Due to commercial sensitivities the ISIF does not report on economic impact at individual transaction level, but instead does so at the aggregate portfolio level.
The ISIF has published its Economic Impact Report for 2016. Key figures show that as at 31 December 2016:
- Approximately 22,000 jobs are supported directly and indirectly by ISIF investments
- 140 Irish companies and projects are benefitting from ISIF investments
- ISIF had committed €2.6 billion to investments in Ireland.
116. Deputy Declan Breathnach asked the Minister for Finance the amount a person currently pays for the cheapest roll-your-own tobacco product, RYO, and the cheapest pack of cigarettes in a shop; his views on whether the minimum RYO pack size of 30g will likely lead to increased illicit RYO products on the black market; and if he will make a statement on the matter. [33599/17]
View answerI am informed by Revenue that the current price of the cheapest 30g pack of roll your own tobacco product is €14.50 and the current price of the cheapest pack of 20 cigarettes available on the retail market is €9.00.
The European Union (Manufacture, Presentation and Sale of Tobacco and Related Products) Regulations 2016, made by my colleague the Minister for Health, require that retail packets of roll-your-own tobacco contain tobacco weighing not less than 30 grams. This has been introduced by the Minister with effect from May 2017 as a public health measure and follows on from a range of such initiatives in the tobacco market in recent years.
It should be noted that while the minimum size of a roll your own packet that can be purchased has increased, the price per kilo to the consumer is not affected and it is not clear if the change will lead to increased demand for illicit supplies. Ireland, like all countries with high tobacco prices is an attractive target for smuggling. The priority for dealing with the smuggling of illicit tobacco products continues to be the effectiveness of enforcement action by Revenue. Such action includes risk analysis and screening of cargo and postal products, cooperation at national and international level and effective use of detection technologies. Revenue also target the illicit trade at post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. The Government has also ensured through the Finance Acts over recent years that Revenue has the statutory powers necessary for undertaking its important work against the illegal tobacco trade, including enhanced Revenue powers of search and inspection for illicit products. I am assured by Revenue that action against illegal activity involving tobacco products will continue to be a high priority.
117. Deputy Barry Cowen asked the Minister for Finance his views on whether the seven-year capital gains tax exemption introduced in budget 2012 is holding back the disposal of sites for development; if he has considered proposals for introducing a measure to reduce the holding period on these sites to four years; and the approximate costs for doing this in budget 2018. [33637/17]
View answer118. Deputy Barry Cowen asked the Minister for Finance the number of properties acquired during the period from 7 December 2011 to 31 December 2014 that are potentially subject to the seven-year capital gains tax exemption under section 604A of the Finance Act. [33638/17]
View answerI propose to take Questions Nos. 117 and 118 together.
I am advised by Revenue that the exemption from capital gains tax referred to by the Deputy applies to land and buildings acquired in the period commencing on 7 December 2011 and ending on 31 December 2014 which are held for a minimum period of seven years. Accordingly, the earliest date that properties acquired in the relevant period can qualify for the exemption will be 7 December 2018. The relief applies in respect the purchase of land and buildings in the State or in any European Economic Area country. It is not possible to provide an accurate estimate of the quantity of land or buildings that were acquired when the CGT exemption was in place and would now be able to benefit from the exemption.
Any changes to the holding period would need careful consideration in terms of its potential impact on the property market generally and specifically on the supply of building land. Shortening the holding period could add complexity to the operation of the relief and could also contribute to uncertainty in the property market. It is difficult to estimate the cost of the specific change proposed by the Deputy as it would not be possible to determine in advance the extent to which sites may be disposed of if there was a change in the timing of the CGT exemption. The disposal of or retention of such sites may be driven by factors other than the rate of CGT such as specific business or operational decisions.
119. Deputy John Curran asked the Minister for Finance if he will review the current operation of the non-resident aggregation relief tax credit; his views on whether it operates fairly; and if he will make a statement on the matter. [33650/17]
View answerI presume the Deputy is referring to married couples where either one or both spouses are non resident and only one of the spouses has income chargeable to tax in this State.
I am advised by Revenue that Section 461 of the Taxes Consolidated Act 1997 (the Act) provides that the married person’s tax credit is granted to an individual who is assessable to tax on the combined income of the couple in accordance with section 1017 of the Act. In effect, this means that in order to qualify for the married person’s tax credit the income of both individuals must be chargeable to tax in this State.
In the case of a married couple where one of the spouses is non-resident and only one spouse has income in this State, that spouse will be treated for tax purposes under the basis of separate treatment (i.e. as a single individual) and granted a single person’s tax credit during the year of assessment.
However a measure of relief may be due where the Irish tax payable under separate treatment exceeds the tax that would have been payable in respect of that income if the total income of both spouses had been chargeable to tax on the basis of aggregation.
To avail of this, a couple should make a specific election for aggregation basis after the end of a year of assessment. The spouse with income chargeable to Irish tax should give Revenue full details of the couple’s total incomes (i.e. the income of both spouses including income not chargeable to Irish tax) after the end of the year of assessment. The case will then be reviewed on the basis of aggregation and any excess tax paid as a result of being taxed as a single individual will be repaid.
Therefore, while the individual is treated as a single individual for tax purposes during the year of assessment, the full benefit of joint assessment is granted on review and no additional tax is suffered by the parties concerned.
120. Deputy Michael McGrath asked the Minister for Finance the position on contact between the Government and the European Commission relating to the illegal state aid complaint made by the Commission by property developers in respect of NAMA; if his Department has provided all information requested by the Commission; when he expects an outcome to the complaint; and if he will make a statement on the matter. [33681/17]
View answerIn late 2015, a complaint was submitted to the Competition Directorate of the European Commission (DG Comp) by a small number of property developers - including some former NAMA debtors - alleging that there may be state aid implications to NAMA's providing financing for the development of commercially viable residential projects by some of NAMA's debtors and receivers.
NAMA and my Department have co-operated fully with the European Commission throughout their preliminary investigations. As the primary relationship with the Commission is held by the State, the Department of Finance is fully involved with NAMA in a joint engagement with DG Comp.
My Department and NAMA have provided all information requested by DG Comp to date. NAMA has produced detailed evidence regarding the complaint which the Department of Finance has provided to DG Comp to assist in its investigation. My officials and officials from NAMA have had extensive engagements with the European Commission via written submissions, telephone calls and meetings, often in response to specific information requests from the DG Comp Case Team resulting from allegations made by the complainants. My officials and their counterparts in NAMA have travelled to Brussels on two occasions to discuss the complaint in detail with the Case Team, most recently in March of this year.
I understand the DG Comp Case Team continue to consider all submissions and evidence provided and a preliminary finding has not yet been determined. The Case Team may seek further information from my Department in the course of their deliberations and my Department and NAMA will of course provide whatever information and assistance is required by the Case Team. Senior Department officials maintain an open dialogue with DG Comp as they progress their work.
While it would not be appropriate for me to comment in detail on what is an ongoing DG Comp investigation, I would point out that NAMA lends money to willing NAMA debtors and receivers on commercial arms-length terms only where there is an expectation that such financing will enhance NAMA's recovery of the money owed to NAMA by its debtor.
To be clear, NAMA is lending money to existing NAMA debtors to allow the debtor to enhance the value of the collateral securing that debtor's original loan owed to NAMA in order to not only pay back the additional lending with interest but, importantly, to pay back a greater proportion of the total debt owed to NAMA.
NAMA requires that the projected return resulting from the provision of additional funding must be the value maximising strategy for the asset and this is fully in accordance with Section 10 of the NAMA Act. This means NAMA will facilitate the funding of development of only those sites that are commercially viable and where site development will deliver a better recovery than the sale of the undeveloped site.
In addition, where NAMA provides funding to facilitate development by its debtors or receivers, it is provided at appropriate market rates of interest. The clear intention of NAMA's residential funding initiative is to enhance the returns to NAMA over and above any other viable strategy, provide funding on market terms and ensure there is no impact on competition more generally.
121. Deputy Michael McGrath asked the Minister for Finance if he has considered introducing alleviation or relief through the tax system in respect of the costs incurred by certain employees who have to travel long distances to and from work each day; and if he will make a statement on the matter. [33716/17]
View answerSection 114 of the Taxes Consolidation Act 1997 provides for a tax deduction in respect of travel expenses which an employee or office-holder is necessarily obliged to incur in the performance of the duties of the office or employment. However, in this regard, return travel from home to work is not an allowable expense. I am aware that the matter has been raised previously in relation to certain employees and office holders who, given the nature of their work, would consider this Section to be overly restrictive.
122. Deputy Michael McGrath asked the Minister for Finance the status of Activate Capital; the amount of funding provided each year since its creation to residential construction projects; the number of residential housing units provided per year since its creation; the number of projects currently in construction; his views on whether the State can do more to ensure the construction sector has access to finance to build the required homes and office accommodation around the country; and if he will make a statement on the matter. [33755/17]
View answerThe National Treasury Management Agency inform me that Activate Capital (Activate) is a €500 million joint venture established by the Ireland Strategic Investment Fund (ISIF) and global investment firm KKR, and financed through a €325 million senior loan note from ISIF and a €175 million junior loan note from KKR.
Activate advances up to 90% of the project funding requirement, including: (i) for the acquisition of land; (ii) to bring projects through the planning process; and (iii) to build out development. It is targeting new residential development in Dublin, the greater Dublin area, Cork, Limerick and Galway which have been identified as the areas of greatest demand.
Given Activate Capital has private shareholders, it would not be appropriate to disclose the Fund’s commercially sensitive information, including the level of drawdown from the fund. This approach is in line with the normal commercial confidentiality principles applying to all private companies.
By the end of July 2017, Activate will have made site and working capital facility commitments to customers on 22 residential development sites. The ISIF’s share of these commitments is €216 million.
These 22 sites have an aggregate capacity for 3,661 homes. 13 of the sites are currently under development, with the remainder being progressed through the planning process.
As part of its commitments in Rebuilding Ireland, the NTMA and NAMA are currently undertaking a number of initiatives in relation to housing and the wider property sector:
- ISIF has total investment commitments to housing investment vehicles of €404 million of which €325 million in Activate Capital, €25 million in the Ardstone Residential Partnership and €54 million to student accommodation in DCU.
- In addition ISIF has committed €125 million in total to more general real estate investment vehicles, including €75 million to the Wilbur Ross Cardinal Commercial Real Estate Mezzanine Debt Fund and €50 million to Quadrant Real Estate Advisors, both of which to date have completed some investment in housing.
- Through these ISIF-supported projects, a total of 8,400 housing units is expected to be delivered in the near term (a small portion of which has already been delivered).
In addition, ISIF's current near term pipeline of potential housing projects, including in the build-to-rent sector and off-campus student accommodation as well as a smaller project that may have the ability to deliver some affordable housing, indicates potential to deliver a further 8,700 units in total.
(i) ISIF-supported Fund for Housing
ISIF and the NTMA have made progress in examining the feasibility of establishing a new funding vehicle capable of delivering mixed-tenure residential developments in a way which is both off-balance sheet and commercially viable.
(ii) ISIF Enabling Infrastructure Fund
ISIF will support the delivery of housing-related enabling infrastructure in large scale priority development areas. Initial ISIF engagement with local authorities and private sector developers indicates that infrastructure financing requirements will be in the order of €250 million.
(iii) NAMA related delivery
Acting within its commercial mandate NAMA will support the delivery of 20,000 additional residential units before the end of 2020. Some 90% of these residential units will be in the Greater Dublin Area, where the demand for housing is greatest. Approximately 75% of these units will be houses, primarily starter homes. The overall cost of the programme is expected to be €4.5 billion. NAMA will utilise its own cash resources to fund this necessary expenditure.
(iv) Local Infrastructure Housing Activation Fund (LIHAF)
The Local Infrastructure Housing Activation Fund has been established to provide targeted investment in enabling local public infrastructure to unlock sites for large scale residential development from 2017 to 2019.
A total of €226 million has been allocated from LIHAF, split on a 75:25 basis between Exchequer (€170 million) and the local authorities (€56 million) funding. Although this represents a slight (13%) overrun on the original €200 million allocation.
The approved LIHAF projects are expected to deliver 22,830 units by 2021 and potentially deliver housing output of 69,240 in the long run. In Dublin, LIHAF is expected to support the delivery of up to 14,000 additional housing units by 2021 and potentially deliver over 37,000 units in the long run.
123. Deputy Michael McGrath asked the Minister for Finance the number of mortgage holders in receipt of tax relief at source in 2017; the cost of such relief; and if he will make a statement on the matter. [33756/17]
View answerI am advised by Revenue that the number of mortgage holders in receipt of tax relief at source in respect of mortgage interest for the year 2016, the latest year for which data are available, is in the order of 419,400 claimants. The provisional cost to the Exchequer in 2016 for claimants is just over €184 million. A forecast for 2017 is not available.
At present, Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. Mortgage interest relief (MIR) has been abolished for homes purchased since 1 January 2013.
In Budget 2017 the Government’s intention to extend MIR beyond the current 2017 end date on a tapered basis to 2020, in line with the commitment in the Programme for Government, was re-stated. The details of the extension will be set out in Budget 2018. A review of policy considerations and potential costs of such an extension was contained in the Income Tax Reform Plan published by my Department in July last year and may be of interest to the Deputy. The plan is available at:
http://www.finance.gov.ie/sites/default/files/Income%20Tax%20Reform%20Plan-FINAL_0.pdf .
124. Deputy Michael McGrath asked the Minister for Finance the number of persons by month who have applied to the declined insurance agreement administered by a company (details supplied) for the past six years; the number of applications that were rejected in the same timeframe; the average premium per year for successful applicants to the declined insurance agreement, in tabular form; and if he will make a statement on the matter. [33759/17]
View answerAt the outset, the Deputy should note that as Minister for Finance, I am not responsible for the operation of the Declined Cases Agreement and therefore I do not have direct access to the data that is being requested.
However, in order to be as helpful as I can, my officials contacted Insurance Ireland about your information request. In response they have provided me with statistics on the number of cases they have dealt with which are set out in the following table.
In relation to these cases Insurance Ireland have informed me that they secured a quotation for the applicants in question through the Agreement and that they therefore consider all of these applications to have been successful. With regard to information on the average premium per successful application, I am informed that this is a matter for individual insurers and that this information is therefore not recorded by Insurance Ireland.
|
Year 2016 |
Total |
Year 2015 |
Total |
Year 2014 |
Total |
|
January |
128 |
January |
91 |
January |
39 |
|
February |
121 |
February |
102 |
February |
42 |
|
March |
139 |
March |
122 |
March |
53 |
|
April |
129 |
April |
107 |
April |
64 |
|
May |
158 |
May |
103 |
May |
93 |
|
June |
206 |
June |
117 |
June |
56 |
|
July |
181 |
July |
94 |
July |
49 |
|
August |
172 |
August |
65 |
August |
55 |
|
September |
181 |
September |
75 |
September |
69 |
|
October |
193 |
October |
91 |
October |
58 |
|
November |
161 |
November |
127 |
November |
48 |
|
December |
172 |
December |
70 |
December |
43 |
|
1941 |
1164 |
669 |
|
Year 2013 |
Total |
Year 2012 |
Total |
Year 2011 |
Total |
|
January |
21 |
January |
12 |
January |
9 |
|
February |
23 |
February |
10 |
February |
8 |
|
March |
27 |
March |
12 |
March |
23 |
|
April |
17 |
April |
10 |
April |
14 |
|
May |
14 |
May |
21 |
May |
14 |
|
June |
31 |
June |
16 |
June |
9 |
|
July |
21 |
July |
21 |
July |
12 |
|
August |
33 |
August |
14 |
August |
16 |
|
September |
36 |
September |
17 |
September |
20 |
|
October |
31 |
October |
14 |
October |
21 |
|
November |
29 |
November |
18 |
November |
13 |
|
December |
25 |
December |
13 |
December |
10 |
|
308 |
178 |
169 |
It should be noted that the Cost of Insurance Working Group examined the issue of the Declined Cases Agreement, on foot of receiving a number of submissions and queries from individuals about its operation. In light of feedback from members of the public, the Working Group recommended that the Declined Cases Agreement process should be made more transparent. In this regard, Insurance Ireland have submitted the first of the required annual reports on the operation of the Agreement to my Department within the past couple of weeks and it is currently under consideration.
125. Deputy Michael McGrath asked the Minister for Finance the status of the issue of VAT exemptions for charities; and if he will make a statement on the matter. [33760/17]
View answerCharities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase.
Following representations made by the Irish Charities Tax Reform Group (ICTR) over a number of years, the former Minister for Finance agreed in 2014 to the formation of a Working Group to examine proposals to reduce the VAT burden on charities. Comprising representatives from the Department of Finance, the Revenue Commissioners and ICTR, the Group met throughout 2015 with the objective of providing options for the Minister of Finance’s deliberation ahead of Budget 2016.
The Report of the VAT on Charities Working Group was published in October 2015 as part of the Budget 2016 documentation, and set out the issues faced by Charities with regard to VAT and the options that could be used to address these issues. The paper presents two possible options to reduce the VAT burden on charities, 1) the introduction of a Limited Sectorial Scheme similar to that in the UK, whereby a series of VAT refund orders are in place for targeted sectors or activities, and 2) a Danish-style Scheme whereby charities can reclaim VAT as a direct proportion to fundraised income up to a capped limit.
On the basis of the report, the then Minister decided in Budget 2016 not to introduce a VAT refund scheme for charities as the charities sector already benefits from a range of Ministerial Refund Orders and special tax treatment across a number of tax heads.
However, in the context of Budget 2017 Minister Noonan asked his officials to engage again with the Irish Charities Tax Reform Group with a view to reviewing the options published in the Report of the VAT on Charities Working Group. In this context, Department officials re-engaged with the newly formed Charities Institute Ireland (a merger of the ICTR and Fundraising Ireland) and met throughout 2016 and 2017 to discuss further the possible options of providing VAT relief to charities, with a view to reporting back to the Minister before Budget 2018.
126. Deputy Michael McGrath asked the Minister for Finance the number of times to date in 2017 the working group on the rising cost of motor insurance has met; and if he will make a statement on the matter. [33761/17]
View answer127. Deputy Michael McGrath asked the Minister for Finance the number of times the working group on insurance costs has met on phase 2 on employer and public liability; and if he will make a statement on the matter. [33762/17]
View answer128. Deputy Michael McGrath asked the Minister for Finance if he will provide a quarter 2 update on the working group action plan to tackle the rising cost of motor insurance; and if he will make a statement on the matter. [33763/17]
View answerI propose to take Questions Nos. 126 to 128, inclusive, together.
The Cost of Insurance Working Group has met 21 times to date. It met for the first time on 20 July 2016 and held its most recent meeting on 5 July 2017.
The Cost of Motor Insurance was the focus of its twelve meetings in 2016. The nine meetings which have taken place since the beginning of this year have focused on the Second Phase of the Group’s work on the Cost of Employer Liability and Public Liability Insurance. The implementation of the Report on the Cost of Motor Insurance is also a standing item on the agenda of the second phase meetings.
There is a commitment within the Report on the Cost of Motor Insurance that the Working Group will prepare quarterly updates on the progress of the implementation of the recommendations and the first such update was published in early May. That update provides details on how the implementation of the recommendations is progressing, with a particular focus on the ten action points which were due for completion during the first quarter.
My Department will publish the second quarterly update shortly. As with the first quarterly update, this will again show the progress to date on the overall implementation of the recommendations, but this time with a particular focus on the 17 action points which were due for completion during the second quarter of 2017. My officials are currently in the process of collating all of the relevant updates from the individual relevant Government Departments and Agencies in order to compile the full quarterly report. In addition, substantial work has also been undertaken in respect of a number of the other 44 actions, including all eight which are classified as “ongoing” in the Action Plan.
