Ruth Coppinger
Question:229. Deputy Ruth Coppinger asked the Minister for Finance the amount of rental income declared to the Revenue Commissioners for each year since 2011 by commercial and residential rents. [34538/17]
View answerRevenue Commissioners Data
Questions (229, 233)
Ruth Coppinger
Question:233. Deputy Ruth Coppinger asked the Minister for Finance the amount of revenue raised from taxation of rental income for each year since 2011 by commercial and residential rents. [34548/17]
View answerWritten answers
I propose to take Questions Nos. 229 and 233 together.
In relation to Question 34538/17, I am informed by Revenue that the gross rental income (residential and commercial) declared on Income Tax returns is in the order of €4,573 million for 2011, €4,446 million for 2012, €4,301 million for 2013 , €4,322 million for 2014 and €4,321 million for 2015, the latest year for which returns are available. The rental income declared in respect of Corporation Tax is €651 million for 2011, €645 million for 2012, €675 million for 2013 , €683 million for 2014 and €684 million for 2015.
Regarding Question 34548/17, I am advised by Revenue that as rental income is aggregated with all other incomes for the purposes of either Income Tax or Corporation Tax calculations, it is not possible to identify the total tax intake from rental income alone.
I am advised that for returns up to the 2015 year of assessment Revenue does not require rental income to be returned in a manner that would enable income from residential property lettings be separately identified from rental income in respect of other types of property, such as commercial rental property. It is not therefore possible to provide the amount of revenue raised from the taxation of residential rental income, nor the total value of such income.
However, the Deputy may wish to note that the 2013 Report of the Comptroller and Auditor General contained, in Chapter 16, a detailed review of the taxation of rental income and expenses deductible therefrom. This report is available on the website of the Comptroller and Auditor General: http://audgen.gov.ie/documents/annualreports/2013/report/en/Chap16.pdf
The Deputy may also wish to note that tax returns for the 2016 year of assessment onwards have separate data fields for residential property rental income and non-residential property rental income. This information will become available in due course.
NAMA Portfolio Value
Questions (230)
Ruth Coppinger
Question:230. Deputy Ruth Coppinger asked the Minister for Finance the estimated value of the remaining overseas properties on NAMA's books. [34539/17]
View answerWritten answers
I am advised that information relating to NAMA’s remaining loan portfolio is available in NAMA’s Annual Report and Financial Statements 2016 which was published on 1 June 2017 and is available via https://www.nama.ie/about-us/publications/annual-reports/.
The concentration of NAMA’s remaining loan portfolio by sector and geography based on the value of underlying security is outlined in charts on page 46 of the 2016 Annual Report. I am advised by NAMA that the estimated market value of assets outside of Ireland securing NAMA loans was €800m at the end of 2016.
If the Deputy is interested in examining further details on the geographic breakdown of NAMA's portfolio, information in relation to the loans and receivables can be found on pages 101 and 130 of the 2016 Annual Report.
Property Tax Data
Questions (231, 232)
Ruth Coppinger
Question:231. Deputy Ruth Coppinger asked the Minister for Finance the net cost of abolishing the local property tax and replacing it with a landlord tax for second and subsequent properties based on existing rates of local property tax plus an additional €600 for the second property and €1,000 on all subsequent properties. [34540/17]
View answerRuth Coppinger
Question:232. Deputy Ruth Coppinger asked the Minister for Finance the estimated cost in 2018 of abolishing the local property tax. [34547/17]
View answerWritten answers
I propose to take Questions Nos. 231 and 232 together.
In relation to Question 34540/17, I am informed by Revenue that a tax on second and subsequent properties based on existing rates of LPT plus an additional €600 for the second property and €1,000 on all subsequent properties, would have an annual yield in the region of €284 million. This is based on those properties indicated to be non-principal primary residencies by their owners in their LPT returns.
In relation to 34547/17, I am informed that the estimated cost of abolishing the Local Property Tax (LPT) in 2018 would be in the order of €460 million, based on my Department’s latest official forecast of LPT receipts for next year.
Question No. 233 answered with Question No. 229.
Banking Sector Data
Questions (234)
Ruth Coppinger
Question:234. Deputy Ruth Coppinger asked the Minister for Finance the value of outstanding commercial property loans owed to Irish banks; and the Irish banks in which the State has a shareholding. [34546/17]
View answerWritten answers
The Central Bank of Ireland publishes a wide variety of statistics, the data is however, provided on an aggregate basis and does not include loan exposures outside this jurisdiction. Table A.14 of the Central Bank of Ireland’s Business Credit and Deposits statistics relates to the Deputy's question and provides information on bank credit advanced to Irish resident private-sector enterprises, by sector of economic activity. Item 11.2 ‘Property investment/development of commercial real estate’ provides data on credit advanced for the purposes of property investment/development of commercial real estate.
The overall outstanding amount of commercial property loans reported by the Central Bank at end March 2017 was €8.82 billion.
In terms of definition, activities covered by this economic sector include; the buying and/or development of land zoned for commercial property which is pre-let or pre-sold; projects where in excess of 75 per cent of floor space is commercial real estate; funds advanced to counterparties whose primary economic activity was not in real estate, land and development, but who are using the funds advanced for this purpose; and lending related to both green field and brown field commercial real estate sites with contracted rental income.
Other types of property lending that may include commercial property, would be item 11.3 ‘Property investment/development of mixed real estate’, 11.4 ‘Investment in unzoned land’ and 11.5 ‘Other real estate activities’. There is a further €3.15 billion outstanding for these sectors as at end-March 2017.
Please note these data relate to all credit institutions resident in Ireland, a full list of which is available here.
In respect of the Irish banks in which the State has a shareholding, loan exposures can be found published in each of the institutions financial statements. The published data is classified or categorized differently by each institution and unlike the Central Bank data includes loans by their overseas operations. Links to the relevant financial statements and the relevant pages are detailed below.
AIB - 2016 Annual Report
https://aib.ie/content/dam/aib/investorrelations/docs/resultscentre/annualreport/annual-financial-report-2016.pdf
Relevant page - 119
PTSB – 2016 Annual Report
http://www.permanenttsbgroup.ie/~/media/Files/I/Irish-Life-And-Permanent/Attachments/pdf/2017/ptsbgh-full-year-report-2016.pdf
Relevant page: Note 18 – Page 147
BOI - 2016 Annual Report
https://investorrelations.bankofireland.com//wp-content/assets/BOI-Annual-Report-2016.pdf
Relevant page – 92
National Minimum Wage
Questions (235)
Ruth Coppinger
Question:235. Deputy Ruth Coppinger asked the Minister for Finance the cost of introducing a minimum wage of €15 an hour for all employees under the aegis of his Department; and if he will make a statement on the matter. [34542/17]
View answerWritten answers
In response to the Deputy's question, I have been advised that of the 18 Bodies under the Aegis of my Department, 6 would have a cost of introducing a minimum wage of €15 per hour for all employees. The information provided by the relevant bodies is listed in the following table:
|
Body |
Cost of introducing a minimum wage of €15 an hour for all employees under the aegis of his department |
|
Comptroller and Auditor General |
€76,769 |
|
Central Bank |
The impact of the introduction of minimum wage of €15 per hour for all Central Bank of Ireland employees on Basic pay is an additional c.€107k annually. In addition, and reflecting PRSI & Pension add on costs the total impact would be c. €135K annually |
|
Irish Fiscal Advisory Council |
The cost of introducing a minimum wage of €15 an hour would be €206.76 a week. This only arises for the duration of two six-week contracts. The total cost for 2017 would be €1,240.56 |
|
National Treasury Management Agency |
€3,575 |
|
Office of the Revenue Commissioners |
€10,500,000 |
|
Tax Appeals Commission |
c. €23,000 |
Departmental Staff Remuneration
Questions (236)
Ruth Coppinger
Question:236. Deputy Ruth Coppinger asked the Minister for Finance the cost to introduce a minimum weekly gross wage of €600 for all full-time employees under the aegis of his Department; and if he will make a statement on the matter. [34543/17]
View answerWritten answers
In response to the Deputy's question, I have been advised that of the 18 Bodies under the Aegis of my Department, 8 would have a cost to introduce a minimum weekly gross wage of €600 for all full-time employees. The information provided by the relevant bodies is listed in the following table:
|
Body |
The cost to introduce a minimum weekly gross wage of €600 for all full time employees |
|
Comptroller and Audit General |
€6,933 |
|
Central Bank |
The impact of the introduction of minimum gross weekly wage of €600 for all Central Bank of Ireland employees on Basic pay is an additional c. €270K annually. In addition, and reflecting PRSI & Pension add on costs the total impact would be c. €341K annually |
|
Financial Services Ombudsman Bureau |
€2,088 |
|
Investor Compensation Company |
€628.00 for financial year ending 31 July 2018 €0 for financial year ending 31 July 2019 |
|
Irish Fiscal Advisory Council |
The cost of introducing a minimum weekly gross wage of €600 would be €296.76 a week. This only arises for the duration of two six-week contracts. The total cost for 2017 would be €1,780.56 |
|
National Treasury Management Agency |
€50,560 |
|
Office of the Revenue Commissioners |
€7,300,000 |
|
Tax Appeals Commission |
c. €15,000 |
Knowledge Development Box
Questions (237)
Ruth Coppinger
Question:237. Deputy Ruth Coppinger asked the Minister for Finance he annual cost of the knowledge development box for each year since it was introduced; and the estimated cost for 2017 and 2018. [34549/17]
View answerWritten answers
I am advised by Revenue that the Knowledge Development Box (“KDB”) was introduced with effect from 1 January 2016. The earliest Corporation Tax returns claiming the KDB would therefore be 2016 returns, the bulk of which are not due to be filed until later this year. When these returns have been filed and subsequently processed and analysed, Revenue will be in a position to provide this data. The estimated cost of the KDB at the time of Budget 2016 was €31 million on a first year basis and €50 million in a full year.
Financial Instruments
Questions (238, 239)
Catherine Murphy
Question:238. Deputy Catherine Murphy asked the Minister for Finance the regulatory differences between REITs, QIFs and QIAIFs; the number of QIAIFs in operation here; the date of commencement of each; the country of origin of each; the value of commercial and residential property held by each QIAIF; the estimated annual rental income collected; the net value of tax collected annually net of withholding tax refunds since their introduction; and if he will make a statement on the matter. [34613/17]
View answerCatherine Murphy
Question:239. Deputy Catherine Murphy asked the Minister for Finance his views on the impact of the Finance Act 2016 on the operation of QIAIFs, including but not limited to the impact on taxes paid; if the changes were retrospective; if they apply to QIAIFs in existence prior to the operation of the Finance Act 2016; and if he will make a statement on the matter. [34638/17]
View answerWritten answers
I propose to take Questions Nos. 238 and 239 together.
Qualifying Investor Funds (“QIF’s”) and Qualifying Investor Alternative Investment Funds (“QIAIF’s”) are forms of investment undertakings and are regulated by the Central Bank. QIAIFs were introduced in July 2013 to meet the requirements of the Alternative Investment Fund Managers Directive. It is a non UCITS fund. These vehicles are targeted at sophisticated private investors and institutional investors. All investors in a QIAIF must make an initial subscription of €100,000. QIAIFs are generally used for riskier alternative investment strategies such as hedge funds, real estate funds and venture capital/equity funds. The normal investment and borrowing restrictions generally imposed by the Central Bank on Irish funds aimed at smaller scale investors are relaxed for QIAIFs, recognising the ability of their investor group to bear a higher level of risk.
A REIT is a collective investment vehicle specifically designed to hold property. It is a quoted company and must be listed on the main stock exchange of an EEA country. In line with their company status they are subject to the provisions of the Companies Acts. The requirement that they are listed on the main stock exchange of an EEA country, also means that they are also subject to the rules of the relevant stock exchange.
Finance Act 2016 provided for the introduction of a tax regime for Irish Real Estate Funds (‘IREFs’). The section was introduced to address the use of certain collective investment vehicles to invest in Irish property by non-resident investors. The IREF regime provides for taxation of investment undertakings, where 25% of the value of that undertaking is made up of Irish real estate assets
As a result of these changes a QIAIF that has more than 25% of its value derived from Irish Real Estate assets will become an Irish Real estate Fund. This legislation is applied to profits from January 1 2017 and applies to all QIAIF’s that meet this threshold regardless of their date of origination.
I am advised by Revenue that data regarding the full impact of the Finance Act 2016 amendments will not be available until the first returns for IREFs are examined; these are due by 30 January 2018 for an accounting period ending on or before 30 June 2017 and by 30 June 2018 in connection with an accounting period ending between 1 July and 31 December 2017.
Disabled Drivers and Passengers Scheme
Questions (240)
Fergus O'Dowd
Question:240. Deputy Fergus O'Dowd asked the Minister for Finance his plans to review the scheme for primary medical certificates and expand the scheme for persons that have been diagnosed with severe autism; and if he will make a statement on the matter. [34706/17]
View answerWritten answers
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT, up to a certain limit, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The criteria to qualify for the Scheme are necessarily precise and specific. 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 fuel grant provided for members of the Scheme, the Scheme represented a cost of €65 million in 2016. This 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 recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities and that the relief has been maintained 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.
Appointments to State Boards Data
Questions (241)
Catherine Martin
Question:241. Deputy Catherine Martin asked the Minister for Finance further to Parliamentary Question No. 292 of 20 June 2017, the number of former TDs that applied for board positions; and if he will make a statement on the matter. [34847/17]
View answerWritten answers
The Public Appointments Service is the centralised provider of recruitment, assessment and selection services for the Civil Service, Local Authorities, the Health Service Executive, An Garda Síochána and other public bodies.
The Public Appointments Service also aims to provide an open, efficient and effective gateway and process to identify top quality people for consideration by Ministers for appointment to State Boards. The website www.stateboards.ie is the channel used by the Public Appointments Service to both inform the public of vacancies on State Boards and to collate expressions of interest in those roles for the Minister. For each position advertised, the PAS process includes an assessment of all applications, following which a list of suitable candidates is submitted for my consideration. As this list of suitable candidates may not include all applicants following the PAS assessment process, it is not possible to provide the number of former TDs that may have applied for positions on boards under the aegis of my Department.
Decentralisation Programme
Questions (242)
Michael Moynihan
Question:242. Deputy Michael Moynihan asked the Minister for Public Expenditure and Reform if he will commence a programme of decentralisation of Departments throughout the country; and if he will make a statement on the matter. [33897/17]
View answerWritten answers
As the Deputy will be aware, The Decentralisation Programme announced in December 2003 involved the relocation of over 10,000 civil and public service jobs to 53 locations in 25 counties.
Up to the date of the cancellation of the programme, about a third of the target numbers, over 3,400 posts were decentralised. The proportion of civil servants working outside Dublin is now just over 50%.
The Government agreed in November 2011 that the Decentralisation Programme should be cancelled in the light of the budgetary and staffing outlook. It was agreed that one project, the Defence Forces in the Curragh, should proceed, on a cost effective basis, as soon as budgetary resources permit.
There are currently no plans at the present time to introduce a further programme of decentralisation.
Garda Stations
Questions (243)
Brendan Smith
Question:243. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the status of a project (details supplied); when this project is likely to proceed to construction stage; and if he will make a statement on the matter. [34622/17]
View answerWritten answers
The OPW has completed its role in the acquisition of a property for the new Garda Station in question.
The OPW and the CSSO continue to press for completion of the process by the Vendor of the property.
Until the acquisition process is fully completed, it is not possible to determine or advise on the timeframes for planning, construction or completion of the project. In view of the Deputy’s repeated interest and questioning on the matter, I can advise that any change in circumstances could be made available to him or he may wish to contact my Office directly.
Public Procurement Contracts
Questions (244)
Niall Collins
Question:244. Deputy Niall Collins asked the Minister for Public Expenditure and Reform if he has satisfied himself with the guidelines available to SMEs to access State procurement contracts. [34712/17]
View answerWritten answers
Public Procurement is governed by EU and National rules. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers the best value for money. It would be a breach of the EU rules for a public body to favour particular candidates on grounds such as organisation size, locality, nationality, etc. and there are legal remedies which may be used against any public body infringing these rules.
Guidance in relation to facilitating SMEs participation in Public Procurement is contained in the National Policy Framework of the Office of Government Procurement (OGP) which consists of five strands:
- legislation (Directives, Regulations)
- policy (Circulars etc.)
- the Capital Works Management Framework
- General Procurement Guidelines
- more detailed technical guidelines, template documents and notes issued periodically by the Policy Unit of the Office of Government Procurement (OGP)
The main policy document in the area of measures to support SME access to public procurement is contained within Circular 10/14 which was issued by my Department in April 2014. This sets out positive measures that contracting authorities should take to promote the involvement of smaller enterprises and highlights practices that are to be avoided which may hinder small businesses in competing for public contracts.
The main initiatives set out in the circular are as follows:
- buyers are advised to undertake market analysis prior to tendering in order to better understand the range of goods and services on offer, the competitive landscape, including the specific capabilities of SMEs, etc.
- the circular promotes transparency in procurement by requiring supplies and general services contracts with an estimated value of €25,000 to be advertised on the Government's electronic tendering portal, e-Tenders;
- it encourages suppliers including SMEs to fully use e-Tenders and avail of its facilities in relation to registration, e-tendering and automatic alerts in relation to future tendering opportunities;
- buyers are encouraged not to set turnover thresholds at more than twice the estimated contract value and the circular puts limits on insurance levels for suppliers where possible;
- it promotes greater use of "open" tendering and less use of "restrictive" tendering;
- it encourages SMEs to consider using consortia where they are not of sufficient scale to tender in their own right or where they may lack certain capabilities necessary to provide a compelling proposition; and,
- it encourages Contracting Authorities to break large contracts down into lots where reasonable to do so and where it does not expose the State to undue risk or significant management overheads.
SME participation in public procurement is also addressed through an SME Advisory Group which the OGP established for this purpose. This meets on a quarterly basis. It includes representatives from the Department of Enterprise and Innovation, Enterprise Ireland (EI), InterTrade Ireland (ITI), the Competition and Consumer Protection Commission (CCPC), the Irish Business and Employers’ Confederation (IBEC), the Small Firms Association (SFA), the Construction Industry Federation (CIF), Chambers Ireland and the Irish Small and Medium Enterprises Association (ISME). It is chaired at Minister of State level in line with the Programme for Government.
The OGP will be considering appropriate refinements to enhance the significant measures already in place to support SME access. These will take account of the lessons learned to date in the procurement reform programme as well as feedback received through the SME Advisory Group and regional briefings.
Budget 2018
Questions (245)
Richard Boyd Barrett
Question:245. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will prioritise increasing the budget to the Department of Social Protection in budget 2018, in view of the fact that many payments are still behind the rate they were in 2009; and if he will make a statement on the matter. [31474/17]
View answerWritten answers
Decisions on the expenditure allocation to the Department of Social Protection will be taken in the context of the 2018 Estimates process.
Services for People with Disabilities
Questions (246)
Margaret Murphy O'Mahony
Question:246. Deputy Margaret Murphy O'Mahony asked the Minister for Public Expenditure and Reform the way his Department is improving services and increasing supports for persons with disabilities during 2017. [34037/17]
View answerWritten answers
Part 5 of the Disability Act 2005 sets out the legal obligations of public service bodies to include promoting and supporting the employment of people with disabilities and complying with any statutory Code of Practice.
The National Disability Authority (NDA) reports annually on compliance within each public service body with a target of 3% of employees with disabilities. In its latest published report for the calendar year 2015, the NDA noted that in the Department of Public Expenditure and Reform, 5.1% of staff employed declared disabilities.
Disability awareness is an integral part of the Induction programme for all new staff within my Department. Our Health and Wellbeing Programme focuses on promoting a proactive approach to staff health and well-being throughout the year. The programme aims to encourage staff to engage in at least one activity to help with physical or mental well-being and to ensure they have the ability to perform at their best. The programme encompasses a range of activities aimed at improving staff morale, reducing stress and embedding a positive attitude. The programme is focused on the key areas of positive mental health, disability awareness, nutritional advice, physical fitness, mindfulness, relaxation and resilience.
Furthermore, all requirements which fall under the remit of my Department’s Disability Liaison Officer’s role are actively pursued.
Capital Expenditure Programme
Questions (247)
Fergus O'Dowd
Question:247. Deputy Fergus O'Dowd asked the Minister for Public Expenditure and Reform the investment by his Department since March 2016 in County Louth and parts of east County Meath; and if he will make a statement on the matter. [34072/17]
View answerWritten answers
As the Deputy will be aware, the Government’s Capital Plan was announced in September 2015 and outlined exchequer capital spending of €27 billion over the next six years. In the 2016 Summer Economic Statement, the Government committed to additional capital investment of €5.14 billion over the period of the Plan. Subsequently, in this week's 2017 Summer Economic Statement, an additional capital investment of €1.5 billion was committed to the remaining period of the Capital Plan.
My Department has overall responsibility for the Capital Plan. Individual Ministers will be able to provide the information sought on projects being funded under the Capital Plan by the relevant line Departments.
The Office of Public Works, as an Office under the aegis of this Department, will be responding to you directly within the next ten days in accordance with Standing Order 42A.
The referred reply under Standing Order 42A was forwarded to the Deputy.
Parking Provision
Questions (248)
Robert Troy
Question:248. Deputy Robert Troy asked the Minister for Public Expenditure and Reform the number of car parking spaces that are being provided by both the public service and Civil Service in Dublin city. [34120/17]
View answerWritten answers
The Commissioners of Public Works provide 2,482 car parking spaces in Dublin city (Dublin districts 1, 2 & 4). 2,104 of the spaces are located at owned and leased office accommodation managed by the Commissioners. The other 378 are provided by way of leases taken by the Commissioners for stand-alone car parking facilities.
The total number of spaces provided in these locations has been reduced by circa 900 spaces since 2009.
The Commissioners can only provide information on facilities controlled by the Office of Public Works and cannot provide details of arrangements that other Departments or Public Service organisations may have in place for the provision of car parking facilities.