Written Answers Nos. 225-244
226. Deputy Stephen S. Donnelly asked the Minister for Finance the membership and role of all Brexit-related stakeholder engagement groups working with his Department on Brexit issues; the number of times each stakeholder group has met; and if he will make a statement on the matter. [38854/17]
View answerThe Government has been preparing for the impact of Brexit since well before the referendum on 23 June 2016, with this work now intensified. The Government is clear and determined that all possible preparations will be made ahead of the UK leaving the EU. A critical aspect of the Government’s contingency planning and preparations is extensive consultation with a wide range of stakeholders.
The Department of Finance has responsibility for leading on stakeholder engagement in the area of financial services. Minister of State for Financial Services Michael D’Arcy T.D. has responsibility for financial services, including the IFS2020 Strategy, which has a strong Brexit focus, and has been drafted in close consultation with key public sector and industry stakeholders. Minister of State D’Arcy chairs quarterly joint meetings with an Industry Advisory Committee, which represents the financial services industry, and the IFS2020 public sector High Level Implementation Committee (HLIC), which is a senior group of civil and public servants representing the public sector. Additionally, the Department of Finance chairs The IFS2020 Public Sector Coordination Group which is an interdepartmental group, which includes representatives from IDA and Enterprise Ireland. This group has met 20 times since June 2016, most recently on 6 September 2017.
The Department hosted a Financial Services Sectoral Dialogue on Brexit in Dublin Castle on 12 April 2017.
227. Deputy Stephen S. Donnelly asked the Minister for Finance the Brexit-related research currently being undertaken by his Department; the topics under consideration; the date this research commenced; the expected date for completion and publication in tabular form; and if he will make a statement on the matter. [38886/17]
View answerThe Department of Finance has been preparing for the impact of Brexit since well before the referendum on 23 June 2016, with this work now intensified. In that regard, the Department has been to the fore in producing and funding a number of Brexit-related studies, both before and since the UK's referendum decision.
To date, outputs include:
- A scoping study published in November 2015 under the Department of Finance-ESRI joint research programme;
- An in-depth analysis of the possible sectoral and regional impacts of Brexit arising from Ireland's trade relationship with the UK, published with Budget 2017;
- A joint research paper with the ESRI, published in November 2016, that modelled the medium to long term macroeconomic impact of Brexit under a number of scenarios, including a hard Brexit.
Ongoing studies include:
- A new sectoral study entitled “UK EU Exit: Trade Exposures of Sectors of the Irish Economy in a European Context” examining the trade exposures of sectors of the Irish economy and other EU-27 Member States, will be published by my Department very shortly.
- A study currently being undertaken under the Department of Finance-ESRI Joint Research Programme covering the following: volumes of trade arriving from the UK and by what mode (for example container or refrigerated truck); the extent to which trade from other countries arrives in Ireland using the UK as a land-bridge; scenarios for how much these trade levels might be affected by the introduction of tariffs or non-tariff barriers. This research is expected to be completed later in 2017.
The Department of Finance will continue to carry out relevant analysis within its areas of responsibility as required.
228. Deputy Róisín Shortall asked the Minister for Finance the expenditure savings that are earmarked for his Department for 2018 that are not accounted for in the mid-year expenditure report or not included in the fiscal space calculations for 2018. [38902/17]
View answerThe Mid-Year Expenditure Report sets out the pre-Budget expenditure ceiling for my Ministerial Vote Group of €439 million for current expenditure and €25 million for capital expenditure. This represents the spending baseline for examination of my Department's budgetary priorities for 2018.
As outlined in the Mid-Year Expenditure Report, the increases planned in expenditure for the delivery of public services are set at sustainable levels in order to ensure that the resources allocated are affordable both now and in the future. Consequently, it is important that there is an ongoing focus on the totality of Departmental spending and not just the incremental increase each year.
This was the context for this year's Spending Review which will support the consideration of existing expenditure alongside budgetary proposals during the Budget Estimates process. Where any savings are identified during the Estimates process, they can be used to meet any emerging expenditure pressures without impacting on the available fiscal space. Work is ongoing in this regard.
229. Deputy Mick Wallace asked the Minister for Finance further to Parliamentary Question No. 83 of 18 May 2017, the three bidders and the corresponding portfolio that were successful following their reverse inquiry; and if he will make a statement on the matter. [38943/17]
View answerI am advised by NAMA that, following openly marketed processes, the successful bidders in each referenced loan sale were as follows:
|
Loan sale |
Initial bidder query |
|
Aspen |
Starwood |
|
Abbey |
Apollo |
|
Jewel |
Allianz (Hammerson and Allianz were ultimately the successful bidders) |
230. Deputy Róisín Shortall asked the Minister for Finance the cost of the special assignee relief programme in each of the years since its existence; and the number of employees covered by the scheme in each of these years. [38962/17]
View answer238. Deputy Michael McGrath asked the Minister for Finance the first and full year cost of increasing the year limit for the special assignee relief programme from five years to ten years; and if he will make a statement on the matter. [39018/17]
View answer239. Deputy Michael McGrath asked the Minister for Finance the first and full year cost of reducing the €75,000 limit to €60,000, €50,000 and €40,000, respectively, for the special assignee relief programme; and if he will make a statement on the matter. [39019/17]
View answer240. Deputy Michael McGrath asked the Minister for Finance his plans to extend the special assignee relief programme, SARP, to employees employed from outside an organisation rather than restricting it to employees moving within an organization; the cost of increasing the scope of SARP; and if he will make a statement on the matter. [39020/17]
View answerI propose to take Questions Nos. 230, and 238 to 240, inclusive, together.
As part of the Special Assignee Relief Programme (SARP) review in 2014, the proposal to include employees that were newly employed from outside an organization rather than restricting it to employees moving within an organization was considered. However, the review found that to include new hires in this manner could cause job displacement in the Irish labour market. If, for example, an Irish tax resident individual and a foreign based individual with similar skills both applied for the same job, it would be less costly for the employer to hire the foreign based individual. This would place the Irish tax resident individual at a considerable disadvantage.
Regarding the potential cost of reducing the €75,000 limit under SARP to €60,000, €50,000 and €40,000, I am advised by Revenue that it is tentatively estimated, without taking account of the potential new employees that may qualify for the scheme as a result of the reduced limits, the cost to the Exchequer in terms of income tax foregone, and based on the employees currently availing of the relief, would be:
1. €60,000 limit: €0.48 million and €0.54 million first and full year cost respectively.
2. €50,000 limit: €0.81 million and €0.91 million first and full year cost respectively.
3. €40,000 limit: €1.13 million and €1.27 million first and full year cost respectively.
In addition to the foregoing, and as the deputies will be aware, the services of my department are available to cost tax policy and other proposals for political parties on a confidential basis. Guidelines have been issued from my department as to the operation of this facility for Budget 2018.
In relation to increasing the eligibility criteria for SARP from 5 years to 10 years, I am advised by Revenue that there are no data on which to estimate the potential impact to the Exchequer of increasing the claim period in this manner. The data on numbers availing of SARP are compiled on a year by year basis; data on the duration each claimant has been claiming for is not readily available, nor is it possible to estimate the number of claimants who would continue to claim relief beyond 5 years should SARP be extended, therefore it is not possible to estimate a cost to the Exchequer for this proposal.
Finally, regarding the cost of the scheme and the number of employees covered by it on an annual basis since it has been available, Revenue reports that provide a detailed analysis of the SARP programme for 2012-2015 are available at: http://www.revenue.ie/en/corporate/information-about-revenue/research/statistical-reports/special-asignee-relief-programme.aspx. From these reports, the following table sets out the cost of SARP by year for each the years 2012 to 2015 (the last year for which figures are available).
|
Year |
No. of Employees |
Tax Cost of Relief |
|
2012 |
11 |
€0.1 million |
|
2013 |
121 |
€1.9 million |
|
2014 |
302 |
€5.9 million |
|
2015 |
586 |
€9.5 million |
231. Deputy Róisín Shortall asked the Minister for Finance the estimated yield in 2018 and in a full year from a 15 cent levy on a standard can of sugar sweetened drink with commensurate levies for higher volumes. [38967/17]
View answerIt is my intention to introduce a tax on sugar-sweetened drinks in April 2018, to coincide with the introduction of a similar tax in the UK at that time. This tax will be imposed as a volumetric tax as a specific amount per litre of product, as opposed to an ad valorem rate imposed on the final retail price of product. This is to ensure that the tax is applied to sugar content of the product regardless of the retail price.
The 2016 Tax Strategy papers estimated potential yields from a tax on sugar sweetened drinks based on total soft drink sales in Ireland of 685.4 million litres per annum. The TSG papers estimated that the tax would apply to 60% of these sales at the time. However, it is now expected that the tax will apply to much less than 60% of these sales as the soft drinks industry continue to reformulate their products, reducing sugar content. Accordingly it is difficult to estimate accurately the expected tax yield. However, it is likely that a tax on sugar sweetened beverages, levied at 15c on a 330ml can, could yield in the region of €45m in 2018 and €60m in a full year.
I have not yet finalised the structure, scope or rate of the tax, so estimates are preliminary and subject to change. It is expected that the underpinning legislation will be introduced in this year's Finance Act.
232. Deputy Róisín Shortall asked the Minister for Finance the estimated revenue yield in 2018 and in a full year from a 1% increase in betting tax on both in shop and online betting. [38970/17]
View answerI am advised by Revenue that the estimated yield that would be generated if the rate of betting tax was increased is available in the pre-Budget 2018 Ready Reckoner at: http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf.
233. Deputy Michael McGrath asked the Minister for Finance the number of branches in each of the State-supported banks that do not accept coins as lodgements; the policies each of the State-supported banks have in relation to the receipt of coins; the statutory role of his Department and the Central Bank in relation to this area; and if he will make a statement on the matter. [39012/17]
View answerAs the Deputy may be aware, the role of the Minister for Finance in relation to coins is set out in the Coinage Act 1950, the Decimal Currency Acts 1969-1990 and the Economic and Monetary Union Act 1998. The Economic and Monetary Union Act 1998 covers issuance of both circulating and commemorative coins. The Central Bank of Ireland acts as an agent of the Minister of Finance in the production and the issuing of euro coins, in accordance with the principles and rules of the Eurosystem. It has the exclusive right to issue cash into circulation and responsibility for the organisation of the national cash cycle.
In relation to the individual banks I have received the following responses to the Deputy's question.
AIB:
"AIB continues to support our customers’ requirements in regard to coin lodgements. AIB accepts coin lodgements in all (*) branches during normal hours. Additionally, in response to customers’ needs, AIB has further recently invested in new Coin Dropsafe devices for busier branches which offer customers a new more convenient choice for lodging coin to an AIB account during busy teller periods. This service is unique in the marketplace and has been specifically designed for AIB so that it can now deliver a simple and quick self-service option for business customers who have coin in their business lodgements. Finally, through the partnership with An Post, AIB customers can also make lodgements, including coin, to their accounts in c.1,100 An Post Offices across the country.
(*Note: AIB has 6 tellerless outlets that cannot accept coin lodgements)"
Bank of Ireland:
"Bank of Ireland has the largest footprint of any individual bank with c.250 branches in the Republic of Ireland, approximately 60% of which accept coin lodgements. We have a comprehensive multichannel distribution platform, combining branch, app, online, and phone banking. The way in which our customers choose to bank is more diverse than ever which is why we provide a multichannel distribution platform. Only 3% of customers’ total transactions are conducted over the counter and every month we have more than 14 million customer interactions on the mobile and tablet app, online, and on the telephone."
Permanent TSB:
“Permanent TSB branches are open Monday to Friday from 10am to 5pm. Approximately 20% of branches also open until 8pm on Thursdays and from 10am to 2pm on Saturdays. The Bank’s full cashier facilities are available in all 77 branches from 10am to 3pm, Monday to Friday and branches accept cash and coin lodgements from all customers. In a small number of branches, the Bank has local arrangements, whereby customers with large coin volumes will lodge at certain times during the day, in such cases, this would be agreed in advance with these customers.”
234. Deputy Michael McGrath asked the Minister for Finance the number of the 419,400 mortgages in receipt of mortgage interest relief that are in the 2004 to 2008 30% cohort and in the 2009 to 2012 15% cohort; and if he will make a statement on the matter. [39014/17]
View answer235. Deputy Michael McGrath asked the Minister for Finance the number of couples in receipt of the higher ceilings of the 2004 to 2008 30% cohort in receipt of mortgage interest relief; the number that are single persons in receipt of lower ceilings; if he will provide the same data for the 2009 to 2012 15% cohort; and if he will make a statement on the matter. [39015/17]
View answerI propose to take Questions Nos. 234 and 235 together.
I am informed by Revenue that the following tables set out the number of loans qualifying for mortgage interest relief (MIR) broken down by rate and ceiling of relief.
The data are based on the numbers of loans qualifying for relief as at 31 December 2016. As is apparent from the tables, the vast majority of relief is now granted at the 15% and 30% rates of relief and at the lower €3,000 and €6,000 ceilings.
A breakdown by numbers of individuals/couples at the various rates and ceilings of relief is not available due to the manner in which the data are returned to Revenue.
Distribution of Loans by Rate
|
Rate |
Number of Loans |
|
15% |
130,033 |
|
20% |
12,982 |
|
22.5% |
1,852 |
|
25% |
11 |
|
30% |
147,570 |
|
TOTAL |
292,448 |
Distribution of Loans by Ceiling
|
Ceiling |
Number of Loans |
|
3,000 |
125,101 |
|
6,000 |
150,808 |
|
10,000 |
9,145 |
|
20,000 |
7,394 |
|
TOTAL |
292,448 |
237. Deputy Michael McGrath asked the Minister for Finance the annual cost of reducing the seven-year capital gains tax exemption under section 604A to five years and four years, respectively; and if he will make a statement on the matter. [39017/17]
View answerI 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. Estimating the potential cost of reducing the holding period as suggested by the Deputy is challenging as accurate information is not available on lands and buildings bought during the period and the consequent potential capital gains tax liability that would qualify for the relief is also dependent on the timing of future sales.
241. Deputy Michael McGrath asked the Minister for Finance the first year and full year costs of decreasing the non-PAYE USC surcharge from 3% to 2.5%; the number of persons affected by such a change; and if he will make a statement on the matter. [39021/17]
View answer242. Deputy Michael McGrath asked the Minister for Finance the number of self-employed persons that will benefit from an increase in the earned income tax credit; and if he will make a statement on the matter. [39022/17]
View answerI propose to take Questions Nos. 241 and 242 together.
As regards the earner income tax credit, I am advised by Revenue that, for 2016, the latest year for which data are available, the estimated number of self employed taxpayer units that benefit from the tax credit in 2016 is around 152,000. Individuals or married persons/civil partners who have elected (or who have been deemed to have elected for joint assessment) are counted as one tax unit. Final estimates will be available in mid-2018 once tax returns for 2016 are filed and processed.
As regards the USC surcharge, I am advised by Revenue that estimated first and full year costs of decreasing the surcharge on non-PAYE income over €100,000 from 3% to 2.5% are €16 million and €28 million respectively. The estimated number of persons affected by this change is around 15,600. These estimates have been generated by reference to 2018 incomes as calculated on the basis of actual data for the year 2015, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends in the interim. The estimates are provisional and may be revised.
243. Deputy Michael McGrath asked the Minister for Finance the first year and full year cost of decreasing VRT for category B motor caravans and motor homes from 13.3% to 6.65% and to 0%, respectively; and if he will make a statement on the matter. [39023/17]
View answerI am advised by Revenue that the estimated cost of decreasing VRT for category B motor caravans and motor homes from 13.3% to 6.65% and to 0% is €1.5m and €3m respectively in a full year.
