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Monday, 11 Sep 2017

Written Answers Nos. 66-85

Brexit Issues

Questions (66)

Stephen Donnelly

Question:

66. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the measures undertaken by her Department to help businesses diversify their export markets as a consequence of Brexit; the number of firms that have availed of these specific measures; and if she will make a statement on the matter. [38659/17]

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Written answers

The UK is a strategically important market for Irish-owned companies and some sectors, for example Food, Timber, Construction and Engineering are particularly dependent on that market.  

However, the objective is not to reduce our exports to the UK market, which will always be a key market. The aim is to grow our exports to other markets. A particular focus will be the Eurozone market.  

In terms of export assistance, my Department secured additional resources in Budget 2017 to enable EI and the LEOs to support exporting companies.  An extra 39 staff are being recruited by EI to support companies with market research and new market penetration. EI will organise some 145 trade promotion events in 2017.  

Since the UK referendum result, my Department and its agencies - Enterprise Ireland, the Local Enterprise Offices and Inter Trade Ireland - have been actively engaged in supporting companies to assess and address their exposure to Brexit.  

In addition to the market diversification drive characterised by the new Eurozone Strategy, Enterprise Ireland’s focus continues to be on supporting companies on a one to one and on a sector by sector basis to enhance their competitiveness and capability and build on their success in existing and new markets. In March 2017, Enterprise Ireland launched its ‘Brexit SME Scorecard’, a new interactive online platform which can be used by all Irish companies to self-assess their exposure to Brexit under six business pillars where they have not already done so. Based on answers supplied by the user, the Scorecard generates an immediate report which contains suggested actions and resources, and information on events for companies to attend, to prepare for Brexit.  

Enterprise Ireland has also launched a Be Prepared Grant that supports the costs of SME clients in preparing a plan to mitigate risks and optimise opportunities arising from Brexit. It can be used to help cover consultancy, travel and out of pocket expenses associated with researching the direction of their Brexit action plan. These supports are available on EI’s website: www.enterprise-ireland.com.  

In May 2017, Enterprise Ireland launched a new Eurozone Strategy to assist Irish exporters increase exports in Eurozone countries by 50%, from €4bn currently to €6bn, by 2020. This strategy will be accompanied by a new ‘Irish Advantage’ campaign which will target Eurozone buyers to promote Irish innovation in key Brexit impacted sectors.  

Eurozone markets can provide currency stability, proximity and potential for growth and opportunities for Irish companies. Enterprise Ireland’s Eurozone Strategy will see the agency partnering with some 600 client companies, approximately half of which are ‘Eurozone Start’ (relatively new to the market and who are heavily reliant on the UK) while the remainder are ‘Eurozone Scale’ (already exporting to the Eurozone).  

To communicate Enterprise Ireland’s Eurozone Strategy and the supports available as part of the implementation of the agency’s strategy, a Prepare for Brexit Breakfast Roadshows was rolled nationally to engage with companies.  

Each of the 31 Local Enterprise Offices can offer advice, training and mentoring to address Brexit challenges. Each LEO can now offer financial assistance to clients to examine export options, to improve product innovation and improve the competitiveness of their business in the face of Brexit.  

InterTrade Ireland has established a new Brexit Advisory Service to assist SMEs, particularly dependent on cross border trade.  

On the critical issue of finance, following significant analysis and stakeholder consultation, my Department is currently working to develop appropriate, tailored and targeted responses to meet the needs of companies across the economy around working capital and business development schemes. While these measures are being considered in the context of existing State aid rules, this work, along with market developments as a result of Brexit, and ongoing engagement with the business community, will inform further discussions with the Commission and the development of any further initiatives to business.

Brexit Issues

Questions (67, 68, 69, 70, 71, 72, 73, 75)

Stephen Donnelly

Question:

67. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the status of the development of sectoral response plans to Brexit; the publication date of these plans; and if she will make a statement on the matter. [38687/17]

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Stephen Donnelly

Question:

68. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the issues identified for consideration in the context of Brexit, including opportunities and their prioritisation; and if she will make a statement on the matter. [38703/17]

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Stephen Donnelly

Question:

69. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the details of issues identified for consideration in the context of Brexit, including threats and their prioritisation; and if she will make a statement on the matter. [38719/17]

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Stephen Donnelly

Question:

70. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the scenario planning that has been conducted by her Department for Brexit; and if she will make a statement on the matter. [38735/17]

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Stephen Donnelly

Question:

71. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the methodology employed in the prioritisation of responses to Brexit; and if she will make a statement on the matter. [38751/17]

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Stephen Donnelly

Question:

72. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the funds that have been requested in response to threats resulting from Brexit; and if she will make a statement on the matter. [38767/17]

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Stephen Donnelly

Question:

73. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the funds have been allocated in response to threats resulting from Brexit; and if she will make a statement on the matter. [38799/17]

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Stephen Donnelly

Question:

75. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation her Department’s priorities for risk mitigation in response to Brexit; and if she will make a statement on the matter. [38831/17]

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Written answers

I propose to take Questions Nos. 67 to 73, inclusive, and 75 together.

The comprehensive document “Ireland and the negotiations on the UK’s withdrawal from the European Union: The Government’ Approach” published on 2 May outlined in detail the structures put in place by the Government to ensure a strategic and whole-of Government response to Brexit that ensures a co-ordinated approach to the identification of key priority issues for the EU-UK negotiations and the wider domestic response.

Since the publication of the comprehensive document, the Government has sought to further increase its strategic oversight of Brexit through the addition of a dedicated responsibility for Brexit matters to the role of the Minister for Foreign Affairs & Trade. The Cabinet Committee structures have also been reformed and a new Cabinet Committee has been established to deal with EU Affairs including Brexit.

The Government’s National Risk Assessment 2017, which provides a systematic overview of strategic risks facing the country, was published on 29 August following a public consultation process. The National Risk Assessment acknowledges the significance of risk arising from Brexit, and that Brexit represents an overarching theme that could have far-reaching impacts on nearly all aspects of national life. It identifies areas where Brexit poses a specific risk, particularly in relation to the economy.

As set out in comprehensive document of 2 May, the Government’s continuing work to ensure that Ireland’s interests are reflected in the EU’s approach to the ongoing EU-UK negotiations is a central dimension of Ireland’s strategic response to Brexit.

Work is also continuing across Government on Ireland’s wider response to the challenges and opportunities posed by Brexit, building on ongoing cross-Government research, analysis and consultations with stakeholders and encompassing the following themes:

- sustainable fiscal policies to ensure capacity to absorb and respond to economic shocks, not least from Brexit;

- policies to make Irish enterprise more diverse and resilient, to diversify trade and investment patterns, and to strengthen competitiveness;

- prioritising policy measures and dedicating resources to protect jobs and businesses in the sectors and regions most affected by Brexit;

- realising economic opportunities arising from Brexit, and helping businesses adjust to any new logistical or trade barriers arising;

- making a strong case at EU level that Ireland will require support that recognises where Brexit represents a serious disturbance to the Irish economy.

Policy decisions in support of these objectives also arise across a wide range of areas, including the annual budgetary process; the forthcoming National Planning Framework 2040; the new 10-year National Capital Plan; the Review of Enterprise 2025 Policy, and sectoral policies and investment decisions in areas such as agriculture, enterprise, transport, communications and energy.

Given the wide mission of the Department of Jobs, Enterprise and Innovation, the UK’s decision to leave the European Union will impact significantly on all policy fields across my Department as well as our family of Agencies. My Department and the enterprise agencies are fully committed to supporting business and all of our stakeholders in this period of heightened uncertainty.

My Department has been building an understanding of companies’ needs in adapting to the challenges posed by Brexit and to develop appropriate and targeted responses to support them. In May my Department published the results of a survey of over 1,000 enterprises.

In response to the results of the survey we are developing a Brexit Working Capital Guarantee Scheme and scoping out the need for a longer term Business Development Loan Scheme to assist firms in investing for a post-Brexit environment.

My Department has funded a research project commissioned by InterTrade Ireland to improve our understanding of the impact on cross border trade of different trade and tariff regimes which might be imposed following Brexit. The research, conducted by ESRI, which was published in June, provides useful data on the extent and concentration of cross border trade, including information on this trade by product and firm types and barriers to trade.

My Department is currently undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy.

The Competition and Consumer Protection Commission is also undertaking a research project to identify the potential financial impacts of Brexit on Irish consumers due to price increases on goods imported from the UK, under a number of potential post Brexit trade scenarios.

In addition we are profiling the composition of trade and investment for Ireland and a range of EU Member States with the UK – these studies will provide an evidence base to inform Ireland’s policy positions as part of the wider negotiation on the UK’s future relationship with the EU.

Brexit and the changing global trading environment were significant considerations in drawing up the 2017 Action Plan for Jobs. This year’s plan is at the core of the government’s response to the huge challenge these pose for businesses - to make sure our enterprise base is resilient in the face of changes to come. This was reflected in the 10 percent increase secured by my Department in this year's capital allocation. Finally, we will also, in the context of Budget 2018, seek to secure the necessary additional resources required to put in place more supports for companies most impacted by Brexit.

In recognition of the challenges facing the Department, not least those posed by Brexit, the Department’s exchequer gross allocation in 2017 was increased to €858.5m. This increase, which represented an overall increase of 7% on the Department’s 2016 allocation of €800.4m, included an additional €52m in capital funding and an additional €6m in current funding.

In terms of current funding, the increased allocation provided to my Department in 2017 included an additional €3million in respect of Pay and is being targeted specifically to assist in our response to the evolving Brexit scenario. It is enabling the Department and, primarily, our Agencies to recruit some 40 to 50 additional staff to supplement existing staffing numbers. These numbers may grow as Agencies allocate additional Own Resource Income, by agreement with the Department, to recruit further staff to work on "Brexit-related" activity.

As regards capital funding, the 2017 allocation of €555m is a 10% increase on the Department’s 2016 capital base of €503m and represents the highest ever capital allocation secured by my Department. This increased capital provision is intended to ensure that the Department’s Enterprise Agencies can continue to meet the ongoing challenges of enterprise development but also the specific threats and opportunities posed by Brexit.

As advised Brexit continues to be the primary focus and priority for my Department. The Deputy will be aware that preparations in relation to the formulation of Budget 2018 are well underway. It is my intention that the Brexit challenge is to the forefront of the Budget 2018 discussions. Given the available fiscal parameters, I am determined to secure the optimal level of funding for my Department’s Enterprise Agencies in Budget 2018 and beyond given their central role in responding to the threats posed by Brexit.

Enterprise Ireland and the LEOs are steadily working with companies to make sure that they are better prepared to respond to the challenges that Brexit will bring. These are the medium term, strategic actions that I know that companies are calling for – things like helping them to drive down costs, diversify into new markets and innovate in the way they do business.

Enterprise Ireland is guiding its clients on issues including: the implications of trading with the UK, improving competitiveness, reducing supply chain costs, accessing funding, finance, foreign exchange, employment regulations and legal issues; investing in programmes to ensure that clients have the finances, the innovation, the leadership and the scale so as to grow in international markets; intensifying its strategy of supporting clients to diversify into new markets and is hosting an International Markets week in the first week of October in Ireland, to provide Irish exporters with access to its overseas market advisors; Enterprise Ireland’s UK team, based in London, is providing support to clients to help identify key business opportunities in the short and medium terms. They also provide advice and support on responding to the implications such as improving competitiveness and reducing supply chain costs.

Enterprise Ireland has also extended its schedule of Minister-led Trade missions. In 2017, there are 46 international ministerial led trade events planned with focus on market diversification into Eurozone and North America. The 2017 trade mission schedule targets key sectors in high potential growth markets and aims to open doors for Irish companies to create opportunities to start negotiations and win significant business contracts in overseas markets. IDA Ireland is constantly engaged with clients across its entire portfolio and in the months leading up to the UK referendum it engaged with clients and prospective clients in relation to the potential impact of BREXIT. The IDA has a Team involved in strategic scenario planning, which continues to work on ensuring that the Agency’s strategy is fit for purpose in light of the referendum results in the UK.

IDA client companies now directly support over 199,000 jobs in Ireland – the highest level ever.

IDA Ireland will continue to work with its existing client base to assist and support them in their growth and expansion in Ireland; to highlight Ireland’s continued strong offering based on talent, ease of doing business, its competitive and transparent taxation regime, English as the spoken language and critically Ireland’s continued access to the EU market; and to be in contact with clients, and prospective clients across the globe and continue to market a competitive value proposition to attract mobile foreign investment from global locations including the UK.

InterTrade Ireland provides a targeted portfolio of programmes to help businesses, especially SMEs, develop capacity in the areas of science, technology & innovation and sales & marketing.

In May InterTrade Ireland established a Brexit Advisory Service for SMEs in the Republic of Ireland who are trading with Northern Ireland, to help them adapt to the changed circumstances following the UK’s withdrawal from the EU. This initiative offers businesses a number of supports, including vouchers valued at €1,000 allowing them to fund specialist advice, free briefing events, information on currency hedging and an interactive information tool explaining the technical language related to Brexit.

The body is also monitoring business needs and challenges through its Business Monitor survey process (a quarterly survey of SME opinion and plans), so that it is in a position to respond quickly to business concerns as the Brexit process evolves.

In addition, Science Foundation Ireland is undertaking a range of measures, both immediate and over the longer term. A key objective for SFI is to strengthen the research funding collaborations with the UK and Northern Ireland with the aim of supporting current collaborations and ensuring that the Irish research community are well-positioned for the post Brexit scenario, where Britain will continue to be a world-leader for innovation and R&D. Given this platform of strong collaboration, or geographical proximity, common language and numerous shared values, SFI believes that it is strategically important now to consolidate and build more Ireland-UK research partnerships and in so doing harness our mutually beneficial strengths.

SFI is targeting globally-renowned researchers to relocate their research operations to Irish universities, thereby benefiting Ireland but also offering these researchers certain access to EU funding. This can take the form of either internationally-based researchers co-locating to Ireland and the UK and holding a joint-professorship appointment with an Irish university and a top-4 UK university, or can involve a UK-based researcher re-locating all or part of their research operation to Ireland.

SFI continues to work to maximise the opportunities arising from Brexit and to moderate any possible negative consequences of Brexit on the Irish research community.

Brexit Staff

Questions (74)

Stephen Donnelly

Question:

74. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of vacancies in her Department for Brexit-related roles; the expected date for these rolls to be filled; and if she will make a statement on the matter. [38815/17]

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Written answers

Within my Department a dedicated Brexit Unit was established in 2016 and is led at Assistant Secretary level within the EU Affairs and Trade Policy Division, to co-ordinate and represent the Departmental and Agencies response to Brexit and to support me in my position at the Cabinet Committee dealing with Brexit. The designated official, at Assistant Secretary level, is supported by 1 Principal, 2 Assistant Principals, 1 Higher Executive Officer and 1 Clerical Officer.  An additional staffing resource at Higher Executive Officer/Administrative Officer is currently being recruited to augment this team. It is hoped that the vacancy will be filled within the next 6 weeks.

Of course, the work of very many Business Units is impacted by Brexit and the Department as a whole has prioritised the Brexit challenges across all its Divisions and actively keeps this under review. In this regard is intended to review the Department's workforce plan (2017-2019) as part of the Department's business planning processes for 2018.

Question No. 75 answered with Question No. 67.

Departmental Bodies Data

Questions (76)

Stephen Donnelly

Question:

76. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the membership and role of all Brexit-related stakeholder engagement groups working with her Department on Brexit issues; the number of times each stakeholder group has met; and if she will make a statement on the matter. [38847/17]

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Written answers

I am keen that the Department continues to engage in in-depth and frequent dialogue with our stakeholders on a range of policy areas which fall within our remit. My Department established a Department of Business, Enterprise and Innovation 'Enterprise Forum' which provides a vehicle for discussion of enterprise, trade and investment policy implications arising from wider global challenges, with a specific focus on Brexit in the first instance. The focus of the working group in the first phase of its establishment will be the UK’s exit from the EU - discussions at the group will help inform the development of policy and operational positions in relation to enterprise, trade and investment.

The role of the DBEI Enterprise Forum on Brexit & Global Challenges is to gather intelligence from the enterprise sector, and consider the implications and impacts for enterprise emerging from the UK’s exit from the EU across the full spectrum of DJEI’s policy remit including but not limited to, impacts on enterprise, employment, trade, investment and regulation; assist in identifying measures which could be considered by Government, Agencies and business to mitigate risks and maximise opportunities associated with Brexit; share research on the potential impacts of Brexit on enterprise; and identify policy approaches which could inform negotiations.

Membership of the Forum includes business representative bodies, representatives from DJEI Agencies and policy officials from across DJEI.  

DJEI

Agencies

Business Rep Groups

Dr Orlaigh Quinn Secretary General (chair)

Philip Kelly, Assistant Secretary, EU Affairs, Trade Policy, Safety & Health Policy Division

Declan Hughes, Assistant Secretary, Indigenous Enterprise Development Division

Dermot Mulligan, Assistant Secretary, Innovation & Investment Division

Assistant Secretary, Strategic Policy Division

Lorraine Benson, Trade Policy

Pauline Mulligan, Brexit Unit   

         

Julie Sinnamon, Chief Executive, Enterprise Ireland

Martin Shanahan, Chief Executive, IDA Ireland

Mark Ferguson, Director General, Science Foundation   Ireland

Pat Ivory, Director of EU and International Affairs, Ibec

Arnold Dillon, Brexit Lead, Ibec

Linda Barry, Acting Director, Small Firms Association

Marc Coleman, Director, Financial Services Ireland

Paul Kelly, Director of Food & Drink Industry Ireland

Neil McDonnell, Chief Executive, ISME

Mark Redmond, Chief Executive, American Chambers

Oliver O'Connor, Chief Executive, Irish Pharmaceutical Healthcare Association

Simon McKeever, Chief Executive, Irish Exporters Association

Ian Talbot, Chambers Ireland

Thomas Burke, Director, Retail Ireland

David Fitzsimons, Chief Executive, Retail Excellence Ireland

Tara Buckley, Director General, RGData

 

My Department convenes quarterly meetings of the Retail Consultation Forum to hear the sectors concerns and to work together on finding practical solutions to the key issues faced by the sector. Brexit has been placed as a standing item on the agenda of the Retail Forum. Brexit is also a regular item for discussion at the Regional Action Plan for Jobs implementation Committees.

Furthermore, my Department held a large stakeholder engagement event in Carrick-on-Shannon on 30 January to hear the views of a wide range of stakeholders. At this event, the Government’s ongoing response to Brexit and the impact across the policy areas for the Department was outlined.  I co-hosted, with Minister Bruton, a second stakeholder engagement on 3 July 2017 which focused on the theme of "Enterprise Skills Needs and Brexit”. This event provided a valuable opportunity for dialogue with all relevant stakeholders to highlight activity already underway or planned to deal with the skills challenges posed by Brexit and to identify any issues which may need further discussion or study through the national skills architecture. A further joint stakeholder dialogue on research with the Department of Education and Skills is also being planned.

In addition to this more structured engagement with enterprise, I, and senior officials from my department, meet with enterprise and enterprise representative groups on a regular basis to ensure that industry has input into enterprise and employment policy development and I am keen that the Department continues to engage in in-depth and frequent dialogue with our stakeholders on a range of policy areas which fall within our remit.

Brexit Issues

Questions (77)

Stephen Donnelly

Question:

77. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the Brexit-related research currently being undertaken by her Department; the topics under consideration; the date this research commenced; the expected date for completion and publication in tabular form; and if she will make a statement on the matter. [38879/17]

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Written answers

My Department is conducting a number of research projects to build an understanding of the possible implications of Brexit on Ireland for enterprise, consumers and trading relations. These studies will provide an evidence base to inform Ireland’s policy positions as part of the wider negotiation on the UK’s future relationship with the EU. The details of the Brexit related research currently being undertaken by my Department is as follows:

Title  

Summary  

Date commenced  

Expected date of completion  

Expected date of publication  

Sectoral implications arising from Brexit: Most exposed sectors  

This research examines the firm level implications of the UK being outside of the European Single Market and Customs Union for Ireland’s most exposed enterprise sectors.

December 2016

End 2017

N/A*

Strategic Implications arising from EU-UK Trading Patterns

Profile trade and investment to highlight dependence at sectoral and product level

Quantify impact of various scenarios on trade and investment

Develop policy options for Ireland  – negotiations and enterprise (mitigation) policies

Profile other EU countries to identify interests and allies

June 2017

End 2017

N/A*

**The Potential Impact of WTO Tariffs and other key relevant   issues on Cross-Border Trade

The first topic in the research programme examined scenarios on how trade flows between Ireland and Northern Ireland might be affected in the event of the imposition of WTO-level tariffs and other non-tariff barriers on cross-border   trade in manufactured products. That report was published earlier this Summer. Two remaining phases will be carried out -

 

The second phase will assess some important aspects of how this cross-border trade is structured at a firm level and how flexible firms are in the face of trade shocks.  It will also look at the integration of supply chains.  

  

The third phase will look at wider ecosystem trade issues and will assess trends and developments relevant to trade in Services (as opposed to manufactured products), between both jurisdictions.  

Phase 2. -

August    2017

   

Phase 3 -

November 2017

Phase 2. -

Oct/Nov.    2017

   

Phase 3 -

Spring 2018

Phase 2. -

Oct/Nov.   2017

 

Phase 3 -

Spring 2018

***Financial impact of Brexit on consumers in Ireland

Analysis of impacts on Irish consumers due to  price increases on UK imports under a number of potential post Brexit trade scenarios

August 2017

End 2017

End 2017

  * It is not intended to publish this study as it will be part of the deliberative process to inform the development of our policy positions as part of the negotiations on the UK future relationship with the EU.

** Project being carried out by InterTrade Ireland in consultation with the Department of Business, Enterprise and Innovation

*** Project being carried out by the Competition and Consumer Protection Commission in consultation with the Department of Business, Enterprise and Innovation

Departmental Expenditure

Questions (78)

Róisín Shortall

Question:

78. Deputy Róisín Shortall asked the Tánaiste and Minister for Business, Enterprise and Innovation the expenditure savings that are earmarked for her Department for 2018 that are not accounted for in the mid-year expenditure report or are not included in the fiscal space calculations for 2018. [38895/17]

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Written answers

The 2018 expenditure ceilings for the Capital and Current allocations to be provided to my Department's Vote next year will be determined through the forthcoming "Budget 2018" and Revised Estimates Volume 2018 processes. 

The 2018 Revised Estimates Volume, with the various expenditure allocations and ceilings set across all Departments, is likely to be published in early December 2017 by my colleague, the Minister for Finance, Public Expenditure and Reform.

Vehicle Registration

Questions (79)

John Brassil

Question:

79. Deputy John Brassil asked the Minister for Finance if a feasibility study has been carried out on the introduction of personalised number plates based on the UK model; if this is an income avenue his Department will consider; and if he will make a statement on the matter. [36793/17]

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Written answers

Under the Finance Act 1992 Revenue has responsibility for vehicle identification marks (registration numbers) in the State and the registration format is prescribed in Statutory Instrument No. 318 of 1992, Vehicle Registration and Taxation Regulations (as amended).

There is provision that Revenue may assign to a vehicle a registration number reserved by the owner on payment of a fee of €1,000, but this registration number must comply with the format prescribed in S.I. No. 318 of 1992.  In 2016, a total of 237 numbers were reserved with associated fees of €237,000.  To date in 2017, a total of 217 numbers have been reserved with associated fees of €217,000.  Apart from this facility to reserve a registration number, there is no scope within the current legislation to provide for a personalised number scheme. This issue has been raised a number of times over the years but the systems developments required, including registration plate recognition systems, would be likely to far outweigh the potential benefits to the Exchequer given the comparatively small national car population. 

 I am informed by Revenue that it has no plans to provide for personalised registration numbers.

Disabled Drivers and Passengers Scheme

Questions (80)

Michael Healy-Rae

Question:

80. Deputy Michael Healy-Rae asked the Minister for Finance the status of an appeal for a primary medical certificate by a person (details supplied); and if he will make a statement on the matter. [36803/17]

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Written answers

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.

To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions: be wholly or almost wholly without the use of both legs; be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs; be without both hands or without both arms; be without one or both legs; be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg; have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual.

The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. I would advise the individual concerned to contact the DDMBA directly to ascertain the status of their appeal.

Budget Submissions

Questions (81)

Niall Collins

Question:

81. Deputy Niall Collins asked the Minister for Finance the estimated cost to the Exchequer of proposals by an organisation (details supplied). [36846/17]

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Written answers

Each year, my Department receives a large number of such submissions  from a wide range of groups and individuals. These are considered by the relevant officials in the context of the Budget process. However, the Deputy will be aware that it is not the practice of the Minister for Finance to discuss the details of measures which may or may not be under consideration as part of the Budget and Finance Bill.

The Deputy may also wish to note that the services of my Department are offered, on a confidential basis, to cost tax policy and other proposals for political parties. Guidelines recently issued as to the operation of this facility for Budget 2018.

Currency Exchange

Questions (82)

John McGuinness

Question:

82. Deputy John McGuinness asked the Minister for Finance if he will consider the future costs of the exchange rates on UK pensions being paid to Irish citizens living here and the taxation of Irish State pensions with a view to providing pension protection relative to the exchange rate; his plans to exempt those on lower pensions from paying tax; and if he will make a statement on the matter. [37348/17]

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Written answers

Following clarification with the Deputy’s office, I understand that his question relates to a proposal to reduce the Irish tax payable by individuals with an Irish state pension who also have UK pension income, due to the negative impact of movements in the UK exchange rate on the Euro value of the UK pension income received.

I am advised by Revenue that the taxation of an Irish resident individual in receipt of a foreign pension depends on the type of pension being received.

In general, foreign pensions, including United Kingdom pensions, are taxable sources of income in Ireland. They are liable to Income Tax and Universal Social Charge but not Pay Related Social Insurance.  Income Tax and Universal Social Charge on foreign pensions are charged at the same rates as other income and taxpayers are entitled to the same reliefs and credits.

Some foreign pensions are not taxable in Ireland. These are foreign occupational and social security pensions that would not be taxable if the recipient was resident in the country that granted the pension. Under the provisions of  Section 200 of the Taxes Consolidation Act, 1997 this type of pension should be excluded for all the purposes of the Irish Income Tax Acts whether the recipient is resident in Ireland or otherwise.

Where a taxpayer is in receipt of income in a foreign currency, it is the Euro value of the income which is subject to tax.  Accordingly, when a currency strengthens against the Euro, the amount subject to tax in Ireland may increase, and when a currency weakens against the Euro, the value decreases. 

Were a tax relief to be introduced for individuals suffering a decrease in the Euro value of their income due to currency fluctuations, this would imply that a corresponding withdrawal of tax relief should occur where an individual benefits from an increase in the Euro value of their income due to currency fluctuations.

I do not consider that it would be appropriate to introduce a tax relief for one cohort of pensioners purely on the basis that some part of their income is derived from UK sources, where that relief would not be available to pensioners with the same level of income derived from Irish-only sources.

Tax Code

Questions (83)

John Curran

Question:

83. Deputy John Curran asked the Minister for Finance the proposals being put forward by the working group established to examine and report on the tax treatment of landlords; if these proposals have been submitted to him for consideration in the context of budget 2018; and if he will make a statement on the matter. [38204/17]

View answer

Written answers

A working group to examine and report on the tax treatment of landlords (or rental accommodation providers) was established in January 2017 and chaired by my Department. This was on foot of a commitment contained in the ‘Strategy for the Rental Sector’, published by the Department of Housing, Planning and Local Government in December 2016. As part of its work, the Group conducted a public consultation over four weeks from Friday 10 March to Friday 7 April 2017. A preliminary output of the Working Group was presented in a Budget 2018 Tax Strategy Group (TSG) Paper and discussed at the meeting of the TSG which was held at the Department of Finance on 25 July 2017. The paper is available at the link: http://www.finance.gov.ie/wp-content/uploads/2017/07/TSG-17-03-Tax-and-Fiscal-Treatment-of-Landlords-JC.pdf.  The Final Report of the Working Group will inform my consideration of any potential measures relating to the tax treatment of rental accommodation providers as part of my deliberations for Budget 2018. It is envisaged that the Final Report of the Working Group will be published on the Budget website (www.budget.gov.ie) on Budget Day.

Budget Submissions

Questions (84)

Niall Collins

Question:

84. Deputy Niall Collins asked the Minister for Finance his views on the estimated cost to the Exchequer of a proposal by an organisation (details supplied). [38295/17]

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Written answers

The Deputy will be aware that my predecessor announced in Budget 2017 the Government's intention to introduce a new, SME focused share-based remuneration incentive in Budget 2018.  This is a complex undertaking as a focused scheme of this nature needs to comply with State Aid regulations and therefore requires EU approval. The intention of this incentive is to support SMEs in Ireland in their efforts to recruit and retain key employees. Work on the development of the incentive has been ongoing throughout the year, and it remains my intention to announce the details of this scheme in Budget 2018.

Exports Growth

Questions (85)

Niall Collins

Question:

85. Deputy Niall Collins asked the Minister for Finance the status of the export finance initiative. [38315/17]

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Written answers

Action 55 of the Action Plan for Jobs called for the roll out of an Export Finance Initiative to support export orientated SMEs in order to determine the demand from SMEs for export finance. A cross-departmental working group was put in place to develop this initiative. The Export Finance Working Group developed a product aimed at providing short-term working capital support for Irish exporting SMEs that was due to be rolled out by end Q2.  Following a request from the Cabinet Committee on the Economy, Trade and Jobs in February 2017 for proposals to assist SMEs with the challenges posed by Brexit, a decision was made to refocus and broaden the work done by the Export Finance Working Group to look at SMEs affected by Brexit. The work undertaken as part of the Export Finance Initiative is now being used to support the development of Brexit mitigation measures; it is anticipated that exporters will be amongst those most impacted. It is important that resources are appropriately allocated to policy measures in light of current Government priorities and it is for this reason that the Export Finance Initiative has not been rolled out.

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