Tuesday, 7 Nov 2017

Written Answers Nos. 191-209

VAT Rate Application

Questions (191)

Jack Chambers

Question:

191. Deputy Jack Chambers asked the Minister for Finance his plans to introduce a 23% VAT rate on certain music and art schools; the reason for this change in VAT rules; the reason certain institutions are affected and others are not; his views on whether these changes are in line with the findings of the report Culture 2025 - Éire Ildánach, a Framework Policy to 2025, published by the Joint Oireachtas Committee on Arts, Heritage, Regional, Rural and Gaeltacht Affairs in July 2017; and if he will make a statement on the matter. [45818/17]

Written answers

Minister for Finance

The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. I am advised by Revenue that there has been no change in the position in relation to the VAT treatment of music and art schools.

In accordance with the EU VAT Directive, the VAT exemption applies to the providers of children’s or young people’s education and school or university education. The exemption also applies to the providers of training and development courses subject to the training and retraining being of a vocational nature.

Where the music or art school is providing courses for educational or vocational purposes, any such course is exempt from VAT provided the lessons in question are provided as part of a programme that meets the standards set out by the Department of Education and Skills syllabus or, in the case of vocational training, the course is aimed at acquiring or updating knowledge in relation to a specific profession or trade.

Where a music or art school is providing courses primarily for recreational purposes the position continues to be that these courses are liable to VAT at the standard rate. If the music or art school has any doubt as to the eligibility for exemption of any of its courses they should contact their local Revenue District for advice.

Question No. 192 answered with Question No. 189.

Departmental Websites

Questions (193)

Niall Collins

Question:

193. Deputy Niall Collins asked the Minister for Finance the external company undertaking an audit of his departmental website; the cost of the audit; the timeframe for its completion; and if he will make a statement on the matter. [45860/17]

Written answers

Minister for Finance

In response to the Deputy, I am advised that there is no audit being undertaken of my departmental website on behalf of my Department. As such, my Department has incurred no costs in conducting an audit.

Question No. 194 answered with Question No. 189.

Tracker Mortgage Examination

Questions (195)

Thomas P. Broughan

Question:

195. Deputy Thomas P. Broughan asked the Minister for Finance the instructions that have been given by the Central Bank to banks regarding tracker mortgages pre-2006; the parameters for review; if all persons that were on tracker mortgages at some point pre-2006 and subsequently wished to return to a tracker mortgage will be included in the review; and if he will make a statement on the matter. [45918/17]

Written answers

Minister for Finance

The Tracker Examination is the largest and most complex supervisory investigation undertaken in the context of the Central Bank's consumer protection mandate, involving the review by lenders of more than two million mortgage accounts.

The Examination requires lenders, which offered tracker interest rate mortgages to their customers, to review all mortgage accounts from the date when the lender commenced offering tracker interest rate mortgages until 31 December 2015 in respect of both Private Dwelling Houses and Buy-to-Let properties:

1. that originated on tracker interest rates;

2. that had tracker interest rates applied at any stage during the term of the underlying mortgage agreements; and/or

3. where the underlying mortgage agreements provided for contractual rights to or options for tracker interest rates at any stage during the term of the agreements.

Further detailed information regarding the Central Bank’s Tracker Mortgage Examination Framework, as well as the Central Bank’s regular progress updates of the Examination, can be found at https://www.centralbank.ie/consumer-hub/tracker-mortgage-examination.

Stamp Duty

Questions (196, 213)

Mary Butler

Question:

196. Deputy Mary Butler asked the Minister for Finance if contracts signed in respect of commercial property transactions on or before 10 October 2017 will be subject to the increased rate of 6% stamp duty as per budget 2018; the timeframe for these contracts to be finalised; and if he will make a statement on the matter. [45923/17]

Tony McLoughlin

Question:

213. Deputy Tony McLoughlin asked the Minister for Finance his plans to introduce a transitional period for the new rate of stamp duty until 31 December 2017 to allow all deals already commenced to be concluded in view of concerns (details supplied) being expressed regarding the proposed rise in stamp duty from 2% to 6% for commercial properties; and if he will make a statement on the matter. [46178/17]

Written answers

Minister for Finance

I propose to take Questions Nos. 196 and 213 together.

The rate of Stamp Duty on commercial property was increased to 6% by way of Budget Day Resolution and applies in relation to all relevant conveyances executed after midnight on Budget day. In order to avoid changing the cost structures of contracts entered into prior to that date, I have introduced measures in the Finance Bill that will allow for the lower rate of 2% to continue to apply to contracts where the parties entered into binding contracts prior to the commencement of the new rate and where the conveyance is executed on or before 31 December of this year.

These transitional measures will come into effect on the passing into law of the Finance Bill.

In order to facilitate taxpayers, Revenue has agreed to accept payment of stamp duty in respect of conveyances or transfers that will qualify for the transitional measures at the lower 2% rate and they will withhold the stamping certificate until after the enactment of the Bill.

In relation to the scenarios outlined by Deputy McLoughlin I am advised that the taxpayers concerned should consult with their legal advisors to determine whether they had, in fact, entered into binding contracts prior to the coming into effect of the Budget Day Resolution and indeed whether the conveyances or transfers will be executed on or before 31 December of this year.

Credit Availability

Questions (197)

Peter Burke

Question:

197. Deputy Peter Burke asked the Minister for Finance if he will request a bank (details supplied) to show discretion on a case; and if he will make a statement on the matter. [45947/17]

Written answers

Minister for Finance

The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s National Promotional Institution; however, it is not a bank and does not have a banking license. The strategic mission of the SBCI is to deliver effective financial supports to Irish SMEs that address failures in the Irish credit market, while driving competition and innovation and ensuring the efficient use of available EU resources. The SBCI achieves this aim through the provision of low cost liquidity and risk sharing activities supporting the provision of appropriately priced, flexible funding to SMEs.

The SBCI does not engage in direct lending. It utilises an on-lending model, making finance available through partner finance providers known as on-lenders. The SBCI currently has 7 on-lenders, 3 bank and 4 non-bank. Credit decisions remain with the SBCI’s on-lending partners and credit applications are subject to the individual credit policies and procedures of each on-lending partner.

It is not clear to me from the question under which SBCI Scheme the borrower’s application referred to has been made and considered. However, the finance of pure real estate development activity is not an eligible purpose for use of SBCI support and there are no exceptions to these eligibility criteria. The SBCI is prohibited from financing pure real estate by European rules and regulations. Additionally, as I have already mentioned, all SBCI funding is subject to the credit decision of the on-lender.

The Deputy’s constituent may be interested in seeking assistance from either Microfinance Ireland or the Credit Review Office if he has applied to a bank and his loan has not been approved. In addition, the Deputy may wish to advise his constituent that the Supporting SMEs Online Tool may be of some help.

Microfinance Ireland provides loans for up to €25,000 to start-up, newly established, or growing micro enterprises employing less than 10 people. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund (www.microfinanceireland.ie/).

The Credit Review Office (CRO) is a government initiative that assists SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The CRO overturns more than 50% of appeals it receives. Further details are available at www.creditreview.ie/.

The Supporting SMEs Online Tool is a cross-government initiative. By answering eight simple questions, SMEs will receive a tailored list of available Government supports to suit their needs.  The Supporting SMEs Online Tool is available at www.supportingsmes.ie/.

The Deputy can rest assured that promoting rural employment and development is an important priority for the Government.

Question No. 198 answered with Question No. 189.

Tax Data

Questions (199)

Pearse Doherty

Question:

199. Deputy Pearse Doherty asked the Minister for Finance the number of commercial real estate transactions that occurred in the week preceding budget 2018; the way in which this figure compares to the average number of transactions per the relevant week; and if he will make a statement on the matter. [45952/17]

Written answers

Minister for Finance

I am advised by Revenue that Stamp Duty is payable on documents that transfer ownership of property.  Once that document has been executed (signed), no interest or surcharge arise if the Stamp Duty return is filed within 30 days of date the document was executed.  In practice Revenue allow up to 44 days. Returns can, of course, be filed late on occasion. For these reasons, it is not possible as yet to assess or compare the period preceding the Budget with the same period last year.

Question No. 200 answered with Question No. 189.

State Aid Investigations

Questions (201)

Pearse Doherty

Question:

201. Deputy Pearse Doherty asked the Minister for Finance if other countries have made claims to the moneys awarded to the State as a result of a court ruling (details supplied); and if he will make a statement on the matter. [45964/17]

Written answers

Minister for Finance

Notwithstanding the appeal that the Government has lodged in the Apple State Aid case, Ireland is required to comply with the binding articles of the Commission’s Final Decision and to recover the alleged aid from Apple. Irish officials are continuing this work to ensure that the State complies with all our recovery obligations. 

To clarify for the Deputy, no court ruling has yet been made in respect of the Apple State Aid case. However, the Commission has said publicly that the recovery amount may be reduced if other countries were to require Apple to pay more taxes. 

The Commission’s Decision does not change the taxing rights in other countries and what the Commission is referring to here forms part of the regular private tax process for any global company, whereby they are responsible for managing their global tax affairs in the various jurisdictions in which they are located.

It is therefore a matter between the company in question and the tax authorities in the various locations where they do business as to whether there are any taxation issues to be addressed and I am not in a position to comment on that engagement due to the necessity to respect taxpayer confidentiality.

Question No. 202 answered with Question No. 189.

Strategic Communications Unit

Questions (203)

Niall Collins

Question:

203. Deputy Niall Collins asked the Minister for Finance the meetings of the strategic communications unit he or his departmental officials attended; the date and location of each such meeting; and if he will make a statement on the matter. [45992/17]

Written answers

Minister for Finance

I can inform the Deputy that a series of meetings was held between officials in my Department and the Strategic Communications Unit (SCU). At a further meeting which I attended, the SCU briefed me and my Secretaries General on the role the unit will play in improving effectiveness, efficiency and cross Government cooperation to foster and develop a whole of Government approach to communications.

See below for details of all meetings held by my officials with the SCU in a tabular format.

Date	Location
13/09/2017	Department of an Taoiseach, Government Buildings
19/09/2017	Department of an Taoiseach, Government Buildings
26/09/2017	Department of an Taoiseach, Government Buildings
04/10/2017	Department of an Taoiseach, Government Buildings
19/10/2017	Department of Finance, Government Buildings

Departmental Websites

Questions (204)

Niall Collins

Question:

204. Deputy Niall Collins asked the Minister for Finance the last time his Department's website was revamped or remodelled; the cost of same; if he or his departmental officials have been consulted regarding creating one stand alone online Government portal website; and if he will make a statement on the matter. [46009/17]

Written answers

Minister for Finance

I can inform the Deputy that my Department undertook a revision to the www.finance.gov.ie website earlier this year and the switchover took place on 22 August 2017. The work was carried out in conjunction with the Office of the Government Chief Information Officer (OGCIO), under the Department of Public Expenditure and Reform, which provides ICT services to the Department of Finance.  The design costs incurred as part of this revamp amounted to €8,050.35.

At a meeting on 19th October 2017, my Department was briefed on the potential for the development of a Digital Service Gateway - a single digital point where citizens can easily access information about the Government services that are available to them. It is expected that this work would involve the rationalisation of existing Government websites and online services over time and that the project would be managed and developed by existing resources within the civil service. I strongly support measures that improve citizens' awareness and understanding of, and access to, the services available to them.

I consider that this proposal represents a useful initiative and look forward to receiving further update on the matter. 

Departmental Websites

Questions (205)

Niall Collins

Question:

205. Deputy Niall Collins asked the Minister for Finance the investment in his Department’s website since 2011, including total associated costs incurred; and if he will make a statement on the matter. [46026/17]

Written answers

Minister for Finance

I can inform the Deputy that investment in my Department’s website for years 2011 to 2017 are as follows:

Year	Costs incurred
2011	€10,296.30
2012	€5,904.00
2013	€52,630.84
2014	€25,422.00
2015	€5,750.25
2016	€14,514.00
2017	€8,050.35

Departmental Staff Data

Questions (206)

Niall Collins

Question:

206. Deputy Niall Collins asked the Minister for Finance the number of departmental staff in his press office; the reporting relationship in operation; and if he will make a statement on the matter. [46043/17]

Written answers

Minister for Finance

I wish to inform the Deputy that there are 4 departmental staff in the Department of Finance Press Office. The Press Office is headed up by a Press Officer (acting AP level) who has 3 staff reporting to him, 1 Higher Executive Officer, 1 Executive Officer and 1 Clerical Officer.  The Press Officer works closely with my Press Adviser.

Departmental Staff Training

Questions (207)

Niall Collins

Question:

207. Deputy Niall Collins asked the Minister for Finance the protocol for attendance by staff, both civil servants and political non-civil servants, to continuing professional development programmes and courses; the number of staff, both civil servants and political non-civil servants, in his Department that participated in such programmes on an annual basis in each of the years 2011 to 2016 and to date in 2017; the costs incurred by his Department for persons who participated in these courses; the providers of all such courses; the subject areas of all courses and programmes provided, in tabular form; and if he will make a statement on the matter. [46060/17]

Written answers

Minister for Finance

The protocol for attendance by staff to continuing professional development (CPD) programmes and courses, is a matter for each individual staff member to manage based on their specific requirements for their profession.  In this Department, staff attend a wide range of talks and workshops which can be utilised for CPD purposes. Membership of professional organisations is a matter for the individual staff member.

For the purposes of keeping a record of learning undertaking, the Department does not differentiate between courses for CPD or learning relating to a particular role in the Department.

The Department of Finance supports all learning which assists in the achievement of our objectives in line with the Partnership Programme for Government. 

The Department's Learning Strategy utilises the 70:20:10 Model of learning which identifies that only 10% of learning occurs in formalised settings, 20% is completed via coaching and mentoring type activities, while 70% of learning happens on-the-job.

In 2017, to the end of October, the Department has supported 115 training sessions with 905 (cumulative total) staff attending. In addition, the Department supports staff attending academic courses through the Refund of Fees Scheme (Certificate to PhD courses) where staff engage in academic learning mainly in their own time.

The Department delivers accredited in-house developed learning initiatives including the Diploma in Project Management with the National College of Ireland (special purpose award Level 8 on QQI), and the Project Management Institute of Ireland, and a Professional Diploma in Financial Services with the Institute of Banking/UCD (special purpose award Level 9 on QQI). In 2018, the Department will increase the offerings to include a Certificate in Economics with the IPA and a Professional Diploma in Tax Policy and Practice with the Irish Taxation Institute.

The Department offers Self-Awareness assessments and Leadership training. Some 66 staff have completed a self awareness assessment with the Predictive Index (PI), which is available to all staff and which looks to raise awareness of one’s self.  Some 170 staff attended Being an Engagement Leader - Unconscious Bias training in 2017. Three further training dates are being rolled out in Q1 2018 in relation to the Unconscious Bias training.

In relation to the 20% element of the Learning Model, staff are given the opportunity to act as mentors and mentees and this learning initiative is offered to all staff of the Department to assist with growing and delivering high performance within the Department. The Senior Management Team are also offered coaching through the Senior Public Service initiative (DPER).

The Department was recognised as the "Best Learning and Development Organisation- Medium Category" in 2017 by the Irish Institute of Training and Development. This award recognises the learning culture in the Department and the opportunities given to staff to learn, develop and stretch their abilities as well as Senior Management's drive to support the learning culture throughout the organisation.

The data as it relates to continuous professional development programmes between 2011 and 2017 is in the table.  The table also includes the total numbers of professional membership held by staff in the Department since 2011.  Please note that this is not a complete list of all the training undertaken in the Department during this time, only that which relates to CPD.  Please also note that the Department split into the Department of Finance and Department of Public Expenditure and Reform in 2011.

Year	2011	2012	2013	2014	2015	2016	2017
Number of Benefit in Kind Deductions	15	10	20	13	10	13	11
	ACCA	Chartered Accountants Ireland	Chartered Accountants Ireland	CIPD	ACCA	ACCA	ACCA
	Association of Compliance Officers in Ireland	Chartered Institute of Internal Auditors	CIMA	ACCA	Association of Compliance Officers	Chartered Accountants Ireland	Chartered Accountants Ireland
	Chartered Accountants Ireland	Chartered Institute of Personnel & Development	CIPD	Association of Compliance Officers in Ireland	Chartered Accountants Ireland	CIMA	CIMA
	Chartered Institute of Internal Auditors	Irish Tax Institute	Irish Tax Institute	Chartered Accountants Ireland	CIPD	CIPD	CIPD
		Chartered Institute of Personnel and Development	The Institute of Bankers in Ireland	CIMA	Irish Tax Institute	Irish Tax Institute	Irish Tax Institute
	CIMA Membership			Irish Tax Institute	Public Relations Institute of Ireland		Public Relations Institute of Ireland
	Irish Tax Institute			Public Relations Institute of Ireland	IITD Department Membership	IITD Department Membership	IITD Department Membership
	Law Society of Ireland

  Professional Courses and Courses Funded through the Refund of Fees Scheme 2017-2018

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
2	Barrister at Law	Kings Inns	€12,560
1	CTA	ITI	€1,792
1	Financial Analyst	CFA Institute	€1,214.45
1	Law Society of Ireland Qualified Lawyer Transfer Test	LSI	€430
7	Diploma in Project Management	NCI	€18,165
1	Diploma in Project Management	IPA	€2,750

Professional Courses and Courses Funded through the Refund of Fees Scheme 2016-2017

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
1	Law Society of Ireland Qualified Layers Transfer Test	LS Ireland	€2,091
1	IT Capability Maturity Framework	IVI	€1,400
1	ACCA - Diploma in Accounting and Business	DBS	€725
1	AITI Chartered Tax Adviser	AITI	€2,450
11	Diploma in Project Management	NCI	€17,607.50

Professional Courses and Courses Funded through the Refund of Fees Scheme 2015-2016

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
1	Masters in Human Resource Management	NCI	€7,900
1	Accounting Technicians Ireland(Cert)	ACCA	€3,465
1	MSc Financial Services	UCD	€3,900
1	AITI Chartered Tax Adviser	AITI	€2,450
1	Barrister at law	LS Ireland	€12,560
1	Cert in Mediation	IPA	€1,980
21	Diploma in Tax and Tax Policy (Year 1+2)	ITI	€33,712
13	Diploma in Project Management	NCI	€21,247

Professional Courses and Courses Funded through the Refund of Fees Scheme 2014-2015

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
1	Advanced Diploma in International Tax(Exams Only)	ITI	€218.61
1	Accounting Technicians Ireland	ACCA	€1,155
1	Associate of the Irish Chartered Tax Advisor Programme	ITI	€1,963.50
1	Law Society Final Exams	LS Ireland	€210
1	Barrister at Law	Kings Inns	€6,280
1	AITI	ITI	€1,963.50
1	Chartered Tax Advisor	ITI	€1,863.50
1	AITI Chartered Tax Adviser Programme	ITI	€2,448
1	ACCA	ACCA	€450
14	Diploma in Tax and Tax Policy (year 2)	ITI	€16,856
13	Diploma in Project Management	NCI	€26,000

Professional Courses and Courses Funded through the Refund of Fees Scheme 2013-2014

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
1	ACCA Accountancy course	ACCA	€2,000
4	AITI Chartered Tax Adviser Programme	AITI	€7,891.50
1	Professional Certificate in Compliance	Institute of Banking	€3,020
16	Diploma in Project Management	NCI	€31,150
14	Diploma in Tax Policy and Practice (Year 1)	Irish Taxation Institute	€16,856

Professional Courses and Courses Funded through the Refund of Fees Scheme 2012-2013

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
1	Advanced Dip in Financial Services Taxation	Irish Taxation Institute	€4,900
1	Associate of the Irish Taxation Chartered Tax Advisor Programme	Irish Taxation Institute	€1,748.50
1	Associate of the Irish Taxation Chartered Tax Advisor Programme	Irish Taxation Institute	€1,963.50
1	AITI Chartered Tax Advisor Programme - Part One	Irish Taxation Institute	€1,248.50
1	Change Management - Practitioner Certification	Prosci	€2,900

Professional Courses and Courses Funded through the Refund of Fees Scheme 2011-2012

Number attending	Course Name	College/Institute/ Training Provider	Cost of Training (€)
1	ACCA - P3 Examination	ACCA	€756.79

Public Relations Contracts Data

Questions (208)

Niall Collins

Question:

208. Deputy Niall Collins asked the Minister for Finance the public relations companies or agencies the services of which his Department used for information campaigns since 1 January 2017; and the costs incurred to date in 2017.. [46077/17]

Written answers

Minister for Finance

I can inform the Deputy that the following public relations companies or agencies have been utilised by my department for information campaigns in 2017:

MediaVest : Publication of an Article covering the success of the Department of Finance in the IITD Awards 2017 where my Department won the “Best Learning and Development Organisation- Medium Category 2017.” The costs incurred by my Department totalled €2,870.54.

Gordon MRM : Announcement relating to AIB IPO Retail Offering Information. My Department procured the services of this company, but the costs are fully recoupable from AIB. The costs concerned totalled €91,202.04, but there is no net cost to my Department.

Language Communications : Public awareness campaign to promote customer switching. My Department procured the services of this company, but the costs are fully recoupable from AIB and PTSB in the context of their restructuring plans. The costs concerned totalled €713,687, but there is no net cost to my Department.

My Department has also advertised directly on a number of occasions, and I have also included a breakdown of those costs below:

Independent Newspapers Marketing Ltd; Irish Examiner; The Irish Times Ltd : Information notice re: Beneficial Ownership. Cost: €2,407.73.

Tuairisc Bheo Teoranta: Information notice re: consultation on Irish language scheme on www.tuairisc.ie. Cost: €982.77.

Independent Newspapers Marketing Ltd: Information notice re: consultation on Irish language scheme in Seachtain Irish language supplement. Costs: €1,239.84.

Departmental Funding

Questions (209)

Dara Calleary

Question:

209. Deputy Dara Calleary asked the Minister for Finance the steps he has taken to ensure that grant aided organisations are spending their moneys appropriately in view of the revelations regarding a charity (details supplied) in 2016; if his attention has been drawn to concerns in relation to organisations funded by his Department; if so, the action he has taken; if his Department has issued new procedures regarding the use of credit cards; and if he will make a statement on the matter. [46094/17]

Written answers

Minister for Finance

The Disabled Drivers Medical Board of Appeal (DDMBA) is the only State agency funded by my Department.  The DDMBA issues no credit cards to staff or board members.  No concerns have been brought to my attention in relation to this body. 

In relation to credit card expenditure, my Department has not issued new procedures relating to credit cards expenditure in response to revelations relating to the charity Console.

Departmental guidelines and oversight procedures already in place have proven effective in ensuring that all charges incurred on departmental credit cards are business related.

Each officer who holds an official credit card is required to certify that all charges incurred are correct and are of an official nature. The officer is required to provide a hard-copy of this statement alongside all receipts for expenses incurred to my Department’s Financial Management Unit when the statement is presented for processing.

In relation to the general Departmental cards, certification must also be provided to ensure that the appropriate approval within the section has been obtained in relation to all expenditure.

I am satisfied that the current oversight and controls exercised by my Department in relation to payments on credit cards are appropriately clear and that the above procedures are effectively enforced.