Written Answers Nos. 68-84
68. Deputy Joan Burton asked the Minister for Finance the estimated yield in 2018 from restricting the use of losses for banks that received official bailout assistance from the State to 50%; and if he will make a statement on the matter. [39990/17]
View answerI assume the Deputy is referring to the decision taken in Finance Bill 2013 in relation to Deferred Tax Assets (DTAs). As the Deputy is aware the NAMA Act 2009 introduced Section 396C of the Taxes Consolidation Act (TCA 1997). The purpose of the section was to restrict NAMA.
Participating institutions in offsetting their losses against a maximum of 50% of their taxable profits in a given year. At the time, the Government had a limited role in the banking system. However, by the introduction of the second Finance Bill in 2013, this measure was considered to have outlasted its initial purpose. As the State then had substantial holdings in the banking sector, constituting 99.8% of AIB shares and 15% of Bank of Ireland shares, Section 396C TCA 1997 was deemed to be acting against the State’s interests.
Hence section 396C TCA 1997 was repealed to support the value of the banks' deferred tax assets and hence their capital ratios and by extension support the value of the State’s banking investments.
It is important to highlight that the provision to allow the carry-forward of tax losses for set-off against future trading profits is available not only for banks but for all Irish corporates. Accordingly, the removal of Section 396C TCA 1997 put the "covered banks" in the same position as other corporates including other banks operating in Ireland.
The Department does not have the information required to calculate the figure requested but I would note that the net impact on tax receipts is a timing measure largely and should not impact on the State’s total Corporation Tax take over time.
To recognise the part that the banks played in the financial crisis, in 2013, the Government also decided that the banking sector should make an annual contribution of approximately €150 million to the Exchequer for the period from 2014 to 2016. In Budget 2016, the payment of this levy was extended until 2021. The bank levy is expected to raise €750 million over five years.
69. Deputy Joan Burton asked the Minister for Finance the mechanism for calculating the bank levy; the way in which it is apportioned between institutions; the yield that would result in 2018 from doubling the value of the levy and individual charge that would apply to each relevant bank; and if he will make a statement on the matter. [39991/17]
View answerIn Budget 2016, the Minister for Finance committed to extending the bank levy (a form of stamp duty paid by financial institutions) until 2021, subject to a review of the calculation methodology.
This review took place during 2016, and included a public consultation to ascertain the views of stakeholders. Following on from this, it was decided to retain the existing DIRT-based calculation methodology, but to update the base year and corresponding levy rate, in order to protect the €150 million annual yield. Minister Noonan committed to the introduction of a rolling two-year series of base years which will introduce a new base year of 2017 for calculating the levy in 2019 and 2020, and a new base year of 2019 for calculating the levy in 2021. The levy rate may require updating when the base year changes to protect the €150 million annual yield.
The current rate is 59% of the amount paid in DIRT by accounts within each institution in 2015.
Doubling the current rate would give a rate of 118%. If everything else was held equal, a rate of 118% would give an approximate yield of €300 million.
The individual charge that would apply to each relevant bank would depend on the amount paid in DIRT by accounts within each institution in 2015. The individual charge by bank is subject to the requirement to maintain taxpayer confidentiality.
70. Deputy Danny Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding VRT; and if he will make a statement on the matter. [39998/17]
View answerMotor homes are classed as Category B vehicles and therefore are subject to a rate of VRT of 13.3% of their Open Market Selling Price (OMSP). This compares to Category A (passenger) vehicles which are charged at rates between 14% and 36% of their OMSP depending on the level of CO2 they emit. Motor homes also receive preferential treatment vis-à-vis Category A vehicles in relation to the application of annual motor tax.
There are a number of objectives of the Irish Vehicle Registration Tax (VRT) system. VRT is an important source of revenue for the State. It also seeks to reflect the negative externalities caused by using the vehicle in the State. These externalities are the costs to society and to the environment that, without the tax, would not otherwise be reflected in the price of the vehicle and for which the consumer would not otherwise have to pay.
In the case of motor vehicles, these include environment externalities such as air pollution, which is why one of the bases for imposing VRT is the vehicle's carbon emissions. Other externalities which VRT seeks to reflect, include the costs to society of providing and maintaining the road infrastructure, traffic control, relevant emergency services, and vehicle registration and licensing. The funds raised through VRT go towards compensating the Irish State for these significant costs.
71. Deputy Peter Fitzpatrick asked the Minister for Finance his views on a matter (details supplied) regarding the local property tax; and if he will make a statement on the matter. [40011/17]
View answerRevenue has advised me that the Local Property Tax (LPT) ‘unfinished housing estate’ exemption is only available for properties that are located within a housing estate, or part of an estate, that was prescribed as ‘unfinished’, by the Minister for Housing, Planning, Community and Local Government in Statutory Instrument (SI) No. 91 of 2013.
Before claiming the ‘unfinished housing estate’ exemption it is very important that property owners ensure their relevant properties are included on the ‘Prescribed List’ and where there are any clarifications required that they contact the appropriate Local Authority. Revenue had no input to the compilation of the ‘Prescribed List’ and is obliged to disallow any claim to exemption where the property is not included in the list.
The property in question is situated in a housing estate where some of the properties are on the ‘Prescribed List’ and some are not. The owner in question filed an LPT return and claimed an exemption in 2013. In 2015, as part of its compliance campaign, Revenue selected the claim for routine verification and subsequently withdrew the exemption, as the portion of the estate in which the individual’s property is located is not included in the ‘Prescribed List’. On that basis the property does not qualify for the exemption and the person is liable to pay LPT for all years since LPT was introduced in 2013.
Revenue advised the person concerned of this situation in 2015 and on a number of occasions in the meantime and also made him aware of the various payment options (including phased arrangement) that are available to him. In the absence of any suitable response from the individual, Revenue recently commenced collection of the LPT liability through Mandatory Deduction at Source (MDaS) from his salary. If he now wishes to make an alternative payment arrangement he should contact the LPT Helpline at 1890 200 255.
72. Deputy Éamon Ó Cuív asked the Minister for Finance the payments by the Exchequer to the European Union in each of the years since 1973 and to date in 2017; the receipts by the exchequer from the European Union for each of the years in the same period; and if he will make a statement on the matter. [40025/17]
View answerEU Budget payments and public sector receipt data are published annually by the Department of Finance in the Budget Statistics publication. The Budget Statistics, which go back to 1973, can be found on the Department of Finance website. For ease of reference, Ireland's receipts from and contributions to the EU Budget are set out in the following table:
|
Year |
Public Receipts from EU Budget* |
Payments to EU Budget |
Net Receipts |
|
€m |
€m |
€m |
|
|
1973 |
47 |
6 |
41 |
|
1974 |
86 |
7 |
79 |
|
1975 |
139 |
12 |
126 |
|
1976 |
152 |
17 |
135 |
|
1977 |
347 |
28 |
318 |
|
1978 |
521 |
59 |
462 |
|
1979 |
672 |
77 |
595 |
|
1980 |
712 |
113 |
599 |
|
1981 |
644 |
134 |
510 |
|
1982 |
765 |
174 |
591 |
|
1983 |
924 |
235 |
689 |
|
1984 |
1,100 |
257 |
843 |
|
1985 |
1,433 |
271 |
1,162 |
|
1986 |
1,456 |
305 |
1,151 |
|
1987 |
1,397 |
324 |
1,073 |
|
1988 |
1,475 |
315 |
1,160 |
|
1989 |
1,645 |
363 |
1,282 |
|
1990 |
2,211 |
359 |
1,851 |
|
1991 |
2,795 |
442 |
2,353 |
|
1992 |
2,532 |
449 |
2,083 |
|
1993 |
2,850 |
576 |
2,274 |
|
1994 |
2,338 |
642 |
1,696 |
|
1995 |
2,567 |
689 |
1,877 |
|
1996 |
2,820 |
687 |
2,133 |
|
1997 |
3,190 |
652 |
2,538 |
|
1998 |
3,015 |
989 |
2,026 |
|
1999 |
2,679 |
1,051 |
1,628 |
|
2000 |
2,607 |
1,075 |
1,532 |
|
2001 |
2,418 |
1,220 |
1,198 |
|
2002 |
2,520 |
1,011 |
1,508 |
|
2003 |
2,581 |
1,190 |
1,391 |
|
2004 |
2,611 |
1,186 |
1,425 |
|
2005 |
2,379 |
1,497 |
882 |
|
2006 |
2,202 |
1,530 |
672 |
|
2007 |
2,086 |
1,570 |
516 |
|
2008 |
2,066 |
1,587 |
479 |
|
2009 |
1,813 |
1,486 |
327 |
|
2010 |
1,885 |
1,352 |
533 |
|
2011 |
1,950 |
1,350 |
601 |
|
2012 |
1,838 |
1,393 |
445 |
|
2013 |
1,673 |
1,726 |
-53 |
|
2014 |
1,423 |
1,685 |
-262 |
|
2015 |
1,792 |
1,952 |
-161 |
* The EU also makes some payments directly to beneficiaries, which do not appear in these public sector receipts (e.g.Research Funding).
Ireland's contribution to the EU budget in 2016 was c. €2,023 million. In relation to receipts for 2016, a final outturn will form part of the Budget Statistics report which is due to be published in the Autumn.
At the time of Budget 2017 my Department forecasted that our contribution to the EU budget will be c. €2,400 million in 2017. However, this forecast is contingent on a number of variables, including the size of the overall EU budget for the year and other EU budget operational developments which will only emerge as the year progresses.
73. Deputy Michael McGrath asked the Minister for Finance the estimates of VAT foregone in 2016 and to date in 2017 by online retailers from outside the EU that sell online through companies (details supplied); the actions taken by his Department and the Revenue Commissioners to prevent this; and if he will make a statement on the matter. [40071/17]
View answerI am advised by Revenue that estimates are not available of the VAT foregone by online retailers from outside the EU that sell online through internet trading platform companies.
Ireland is discussing these issues bi-laterally with a number of Member States and also centrally at EU level at European Council working party level and through an eCommerce Committee. Research and investigations are ongoing.
VAT fraud is complex and tackling this fraud requires a range of responses including legislative change, administrative initiatives, the exploitation of IT systems and analytics, multi-agency cooperation and information sharing with other Member States.
Revenue has introduced a significant body of VAT legislation aimed at combatting VAT evasion in various Finance Acts since 2012. This includes joint and several liability provisions where a supply or series of supplies is linked to VAT fraud, new requirements to keep additional records or to issue certain documents to customers, and the power to notify suppliers that a VAT number has been cancelled.
74. Deputy Michael McGrath asked the Minister for Finance the number of households that have paid local property tax in 2016; the number of households that have not paid; the number of houses in each band; the local property tax rates applied in each local authority, in tabular form; and if he will make a statement on the matter. [40072/17]
View answerI am advised by Revenue that the figures for the number of households that have paid local property tax (LPT) in 2016 and the number of houses in each band by local authority is available at the following location
http://revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/end-of-year-reports/local-property-tax-2016.aspx.
In respect of the number of households that have not paid, the number of deferrals and exemptions are also shown in this link. As noted in the statistics, the estimated compliance rate is 97% for 2016, with 1.886 million properties returned. On this basis, there are perhaps 20,000 properties for which LPT is outstanding for 2016 but this figure should be considered as a tentative estimate. The number is expected to reduce over time as properties are transacted and Revenue compliance programmes continue to be implemented.
I am further advised by Revenue that information in respect of the local authority adjustment factors in operation for 2016, along with the standard rate of local property tax, is shown on page 3 of the following document:
www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/quarterly-reports-2015/local-property-tax-october2015.aspx.
75. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the way in which a company specialising in the cleaning of monuments can tender for contracts to clean OPW monuments; and if he will make a statement on the matter. [39924/17]
View answerWhere the Office of Public Works is undertaking repair works to historic buildings in State ownership, these will generally be undertaken by Contractors which have specific experience in this field and which possess the necessary skills to address these often complex projects. Occasionally, such projects may include a requirement for cleaning works to historic fabric and this work is normally carried out by specialist sub-contractors to the Main Contractor. Cleaning sub-contractors must demonstrate to OPW that they have appropriate experience of working on historic structures and are in the vast majority of cases subject to tender under public procurement rules.
Any firm wishing to be considered for cleaning works to historic buildings in State ownership should indicate its interest by writing to the OPW Heritage Services.
76. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform his plans to issue a further Revised Estimates volume in view of the setting up of the new Department of Rural and Community Development; the timeframe for same; and if he will make a statement on the matter. [40023/17]
View answerFollowing the decision in relation to re-organisation of Government Departments, the composition of a number of Departments has changed particularly with the establishment of the Department of Rural and Community Development.
The Estimates for 2017, published in the Revised Estimates Volume 2017, were voted on by Dáil Éireann in May 2017. Further Revised Estimates are to be presented to Dáil Éireann that will reflect the impact on Departmental allocations of the transfer of functions.
Work in relation to finalising the exact allocations to be transferred between Departments is to be finalised in the coming days with the Estimates expected to be presented to the Dáil shortly thereafter.
77. Deputy Jackie Cahill asked the Minister for Education and Skills if he will request the school buildings unit in his Department to arrange to meet with representatives of a school (details supplied) in order to clarify matters that have arisen about funding that has been granted to the school in March 2017 for building development at the school; and if he will make a statement on the matter. [39941/17]
View answerI can confirm to the Deputy that my Department approved a devolved grant for the provision of five additional classrooms to the school concerned earlier this year to meet their immediate accommodation needs.
The school authority has been in further contact with my Department in respect of their accommodation requirements. The matter is currently being considered and my Department expects to be in further contact with the school authority shortly.
78. Deputy Brian Stanley asked the Minister for Education and Skills the number of seats allocated on a bus route (details supplied); the number of eligible seats allocated; the primary school or schools from which the eligible candidates were awarded seats; the number of concessionary seats available on this bus route; the primary school or schools to which the concessionary seats were awarded; the process used to determine the awarding of seats; if he will provide the audited records of the confirmation of distance measured in determining allocation of same; and if he will make a statement on the matter. [39947/17]
View answer79. Deputy Brian Stanley asked the Minister for Education and Skills the way in which school transport bus routes are measured; the auditing process for measuring distance; the frequency with which they are reviewed; and if he will make a statement on the matter. [39948/17]
View answerI propose to take Questions Nos. 78 and 79 together.
School transport is a significant operation managed by Bus Éireann on behalf of the Department.
During the 2016/17 school year almost 116,000 children, including some 12,000 children with special educational needs, were transported in over 4,000 vehicles on a daily basis to primary and post-primary schools throughout the country covering over 100 million kilometres annually.
Under the terms of my Department's Post Primary School Transport Scheme children are generally eligible for transport where they reside not less than 4.8 kilometres from and are attending their nearest school.
Bus Éireann determines distance eligibility by measuring the shortest traversable route, which may be either pedestrian or vehicular from a family's home to their nearest school. The main purpose of this measurement is to identify the distance that families reside from their nearest school and to assess if they meet the distance eligibility criterion for school transport.
In cases where distance eligibility is marginal or in dispute, vehicles fitted with calibrated measuring devices which measure the distance down to the nearest metre may be used to establish the exact distance.
Children who are not eligible for school transport may apply for transport on a concessionary basis only. Concessionary transport is subject to a number of terms and conditions including the availability of spare seats on an existing service and payment of the annual charge. Under the terms of the School Transport Schemes additional vehicles will not be introduced, nor will larger vehicles or extra trips using existing vehicles be provided to cater for children travelling on a concessionary basis.
Where the number of applications for transport on a concessionary basis exceeds the number of seats available, Bus Éireann allocate these spare seats using a random selection process. Priority is given to existing concessionary applicants and their siblings provided they have paid the annual charge before the deadline date i.e. the last Friday in July.
The terms of the School Transport Schemes are applied equitably on a national basis.
I have asked Bus Éireann to forward the specific details requested directly to the Deputy.
80. Deputy Kathleen Funchion asked the Minister for Education and Skills the reason the participation of a parent in schemes such as Turas Nua is not considered as an eligible payment towards a dependant's special rate of maintenance grant application when applying for this grant. [39949/17]
View answerThe qualifying criteria for the special rate of maintenance grant is as follows:
1. The student must qualify for the standard rate of grant;
2. Total reckonable income, after income disregards and Child Dependant Increase(s) are excluded, must not exceed €23,000; and
3. As at 31st December 2016, the reckonable income must include one of the eligible long-term social welfare payments prescribed in Schedule 2 of the Student Grant Scheme.
I understand that Turas Nua is one of two providers contracted by the Department of Employment Affairs and Social Protection, to provide employment services to people who are long-term unemployed. As Turas Nua is not a specified long-term payment, it cannot be considered as an eligible payment under the Student Grant Scheme.
The decision on eligibility for a student grant is a matter for the relevant grant awarding authority. Under the terms of the student grant scheme, grant assistance is awarded to students who meet the prescribed conditions of funding, including those relating to nationality, residency, previous academic attainment and means.
If an individual applicant considers that she/he has been unjustly refused a student grant on the grounds of his/her initial classification as an independent or dependent student, she/he may appeal, in the first instance, to SUSI. Where an individual applicant has had an appeal turned down in writing by SUSI and remains of the view that the scheme has not been interpreted correctly in his/her case, an appeal, outlining the position may be submitted by the applicant to the independent Student Grants Appeals Board at www.studentgrantappeals.ie within the required timeframe.
81. Deputy Éamon Ó Cuív asked the Minister for Education and Skills when a decision will be made on an application for school transport under the provisions for children with special needs, disability and health conditions submitted to his Department for a person (detail supplied); and if he will make a statement on the matter. [40017/17]
View answerSchool transport is a significant operation managed by Bus Éireann on behalf of the Department.
During the 2016/17 school year almost 116,000 children, including some 12,000 children with special educational needs, were transported in over 4,000 vehicles on a daily basis to primary and post-primary schools throughout the country covering over 100 million kilometres annually.
In general, children with special educational needs are eligible for school transport if they are attending the nearest recognised mainstream or special school that is or can be resourced, to meet their special educational needs under Department of Education and Skills' criteria.
Applications for transport provision, under the terms of this scheme, should only be completed in circumstances where children are not in a position to avail of standard school transport services.
Eligibility is determined following consultation with the National Council for Special Education through its network of Special Education Needs Organisers (SENO).
In this regard parents of the child in question should complete and submit an application for school transport, for the child in question, should they wish to avail of transport under the terms of the above scheme.
82. Deputy Bernard J. Durkan asked the Minister for Education and Skills if a school (details supplied) is included in eligibility for higher education grants as affecting the case of a person (details supplied); and if he will make a statement on the matter. [40060/17]
View answerUnder the student grant scheme, eligible candidates may receive funding provided they are attending an approved course at an approved institution. The definition of an approved institution is set out in Section 7 of the Student Support Act 2011 and Regulation 3 of the Student Support Regulations 2017.
The college to which the Deputy refers, is not an approved institution, for student grant purposes.
83. Deputy Fergus O'Dowd asked the Minister for Education and Skills the position on a primary school (details supplied) in County Louth in which children attending the school have been withdrawn by their parents due to concerns that have been publicly expressed; and if he will make a statement on the matter. [40068/17]
View answerIn the case of the school in question, I wish to advise that a Whole School Evaluation of the school was carried out earlier this year. A report including recommendations to address some of the issues raised was published thereafter.
Senior officials from my Department subsequently held a meeting with school management and the patron of the school in relation to the issues raised in the Whole School Evaluation Report and the Department will continue to engage with the school on this matter.
In this regard, a further meeting was recently held between the school, patron, single manager and the Department and discussions are ongoing.
84. Deputy Pearse Doherty asked the Minister for Education and Skills if a person (details supplied) in County Donegal will qualify under exceptional circumstances for a student grant in view of the fact that they have supplied SUSI with supporting medical evidence; and if he will make a statement on the matter. [40074/17]
View answerAs part of a comprehensive customer service and communications strategy provided by Student Universal Support Ireland (SUSI), to ensure that all necessary avenues are open to applicants to receive the information they need, a dedicated email and phone line service is provided by SUSI for Oireachtas members. This was established to meet an identified need for applicants who choose to engage the assistance of their public representatives in making enquiries about their grant applications.
This service complements the established channels provided by SUSI which include online application tracking, a dedicated website, a telephone helpdesk, email and social media, including Facebook and Twitter.
Enquiries may be emailed direct to SUSI at oireachtas@susi.ie. Staff in SUSI are responding to email queries within a matter of days.
If an individual applicant considers that she/he has been unjustly refused a student grant or that the rate of grant awarded is not the correct one, she/he may appeal, in the first instance, to SUSI.
Where an individual applicant has had an appeal turned down in writing by SUSI and remains of the view that the scheme has not been interpreted correctly in his/her case, an appeal may be submitted by the applicant via www.studentgrantappeals.ie outlining the position to the independent Student Grants Appeals Board within the required timeframe.
