Written Answers Nos. 48-67
48. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the withdrawal agreement pertaining to Britain leaving the EU as published by the EU; and if he will make a statement on the matter. [10819/18]
View answerThe Guidelines adopted by the European Council last December called upon the Union negotiator and the United Kingdom to complete the work on all withdrawal issues, including those not yet addressed in the first phase, in conformity with the European Council guidelines of 29 April 2017, to consolidate the results obtained, and to start drafting the relevant parts of the Withdrawal Agreement. The publication last week by the European Commission of a draft Withdrawal Agreement is fully in line with this mandate. This is an EU draft which will now be considered internally by EU Member States before being subject to negotiations between the EU Task Force and the UK. The EU has made it clear that negotiations in phase two can only progress as long as all commitments undertaken in the first phase are respected in full and translated into legal terms as quickly as possible. The draft text reflects the principles and commitments set out in the Joint Report from the EU and UK negotiators published on 8 December 2017, including on citizens’ rights, the financial settlement and on the Irish specific issues.
I welcome the draft protocol on Ireland and Northern Ireland, which is an integral part of the proposed withdrawal agreement. The draft protocol gives legal effect to the commitments on avoiding a hard border and protecting the Good Friday Agreement in all its parts. It also includes elements on rights and on the Common Travel Area. Since they were agreed in December, we have been working closely with the Task Force to ensure the implementation of the principles and commitments through the Withdrawal Agreement. We are fully satisfied with how this process was managed.
The Government has always been clear that our preference is to resolve the Irish-specific issues through the wider future relationship agreement between the EU and the UK, a view we share with the UK government. We also stand ready to consider proposals from the UK on specific solutions. At the same time, it is necessary to have legal certainty on the backstop as part of the Withdrawal Agreement. This is a default and will only be triggered if the commitments made by the UK in phase one cannot be delivered through the wider future relationship agreement or specific solutions.
It is intended that the eventual Withdrawal Agreement will also include transition arrangements, the draft legal text on which is separately under negotiation between the EU and UK. Appropriate transitional arrangements would be hugely important for Ireland in giving certainty to individuals and businesses. We welcome that the EU has proposed that the whole of the EU acquis will apply during the transition, which means that the status quo will be preserved with the aim of avoiding any gaps or cliff edge effects between the UK leaving the EU and when a future relationship agreement enters into force.
49. Deputy Pearse Doherty asked the Minister for Finance the number of credit servicing firms that have completed the authorisation process in view of the passing of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015; the number that were refused; the number still pending authorisation but operating under the transitionary measures; and if he will make a statement on the matter. [10463/18]
View answerThe Central Bank has authorised 9 credit servicing firms since the enactment of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015, with a further 2 firms still availing of the relevant transitional provisions provided for by virtue of the legislation. Details of these firms are available on the Register of Authorised Credit Servicing Firms on the Central Bank website.
There were 10 other firms who originally notified the Central Bank that they wished to avail of the relevant transitional arrangements. Further to the Bank's engagements with these firms, they subsequently withdrew their applications for authorisation.
Following the enactment of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (the 2015 Act), the Central Bank focused on developing a robust regime for this new category of regulated firm. As part of this regime, the Central Bank developed detailed Authorisation Requirements and Standards for credit servicing firms which set appropriately high requirements on applicant firms. These include requirements on how these firms deal with their loan owner in order to ensure that borrowers receive the full protections of Irish financial services legislation, including Central Bank codes.
The Central Bank seeks to process each application for authorisation as expeditiously as possible, while meeting its obligation to operate a rigorous and effective gatekeeper function in order to ensure that only firms that demonstrate compliance with the Authorisation Requirements and Standards are authorised.
50. Deputy Bobby Aylward asked the Minister for Finance the status of payment service directives which govern the application of a surcharge by a trader exactly equal to the charge applied by a bank to that trader for all debit and credit card transactions under €12; his views on whether this practice is acceptable and legal under the payment services directives; and if he will make a statement on the matter. [10464/18]
View answerI understand this question to relate to the prohibition on surcharging - the practice where a merchant charges an extra fee for receiving a payment made using a payment card - contained in Article 62 of the revised EU Payment Services Directive (PSD2). That Article provides that a payee shall not request charges for the use of a payment instrument for which interchange fees are regulated under Chapter II of the EU Interchange Fee Regulation (Regulation (EU) 2015/751.
PSD2 was transposed into Irish law by the European Union (Payment Services) Regulations 2018 (S.I. No. 6 of 2018) and Regulation 86 of the transposing Regulations gives effect to this prohibition, meaning that a merchant cannot surcharge on the vast majority of consumer credit and debit cards.
It should be noted that the prohibition on surcharging does not cover transactions with commercial cards or transactions with payment cards issued by three party payment card schemes. Where surcharges are allowed, the European Union (Payment Services) Regulations 2018 provide that they must not exceed the direct costs borne by the payee to accept the card.
PSD2 and the EU Interchange Fee Regulation form part of a legislative package. The EU Interchange Fee Regulation halved the interchange fee charged to retailers to 30 basis points for credit cards, and the corresponding fee for domestic consumer debit cards was reduced to 10 basis points with effect from 9 December 2015. These changes significantly reduced the costs of accepting card payments, as interchange fees make up part of the overall charges collected by acquirers from retailers.
51. Deputy Clare Daly asked the Minister for Finance if exemptions from exit tax are available for persons who are permanently incapacitated due to mental or physical disability. [10492/18]
View answer52. Deputy Clare Daly asked the Minister for Finance the reason exit tax for wards of court, who are exempt from exit tax, is deducted at source and then refunded rather than an exemption being applied. [10493/18]
View answerI propose to take Questions Nos. 51 and 52 together.
I am informed by Revenue that the following persons may be entitled to a repayment of life assurance exit tax -
- a permanently incapacitated individual who is exempt from income tax under section 189 of the Taxes Consolidation Act 1997 (“TCA 1997”) in respect of income arising from the investment of compensation payments in respect of personal injuries,
- the trustees of a “qualifying trust” within section 189A TCA 1997 where the life policy is held as part of the trust fund of the qualifying trust, provided that income from the trust or investment returns from the investment of the trust funds is the sole or main income of the incapacitated individual, and
- a thalidomide victim who is exempt from income tax under section 192 TCA 1997 in respect of income from the investment of compensation payments made by the Minister for Health and Children or by the foundation known as Conterganstiftung fur behinderte Menschen.
The life assurance exit tax will be deducted in the normal manner but the individual or trust may be entitled to a repayment of the exit tax under section 730GA TCA 1997. The same procedure applies for a Ward of Court who is exempt from income tax under section 189 TCA 1997.
In contrast to the above for other exit taxes, such as Deposit Interest Retention Tax (DIRT), persons who are permanently incapacitated or who are trustees of a special trust for permanently incapacitated individuals where the income is exempt from tax can make a declaration to Revenue (Form DE2 2018) that they would be entitled to a refund of the entire amount of DIRT if so deducted. The financial institution on receipt of notification from Revenue that no DIRT is to apply will pay interest without the deduction of DIRT.
53. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 86 of 21 February 2018, if the one disqualification listed for 2018 was an active employee in a company or if the disqualification related to historic behaviour; and if he will make a statement on the matter. [10518/18]
View answerI am informed by the Central Bank of Ireland that the 2018 disqualification from performing senior management roles in regulated firms, under the Fitness & Probity regime, relates to Mr Michael Walsh. Mr Walsh admitted participation as a non-executive director in certain prescribed contraventions of financial services law by Irish Nationwide Building Society during the period from 1 August 2004 to 30 September 2008.
The full details of Mr Walsh's disqualification are outlined in the Central Bank's public statement on the matter which was published on 12 February 2018.
As the Inquiry into 'Persons Concerned in INBS' is still ongoing, the Central Bank does not intend to make any further comment, nor would it be appropriate for me to comment on the matter at this time.
The public statement is available at the following link:
https://www.centralbank.ie/docs/default-source/news-and-media/legal-notices/settlement-agreements/public-statement-relating-to-settlement-agreement-between-central-bank-of-ireland-and-michael-p.-walsh.pdf?sfvrsn=4
54. Deputy Mattie McGrath asked the Minister for Finance if his attention has been drawn to the implications that have been imposed on houseowners, landowners and in particular houseowners whose home insurance has substantially increased whereby other insurance providers will not quote homeowners who have now seen their homes brought under the possible 100-year flood map following CFRAM's recent revised national flood hazard maps; his plans to deal with this in the future; and if he will make a statement on the matter. [10521/18]
View answerI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years.
However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are willing to accept. Consequently, neither the Government nor the Central Bank can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- development and implementation of plans by the OPW to implement flood relief schemes, and
- improving channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in marginal areas.
The core strategy for addressing areas at potentially significant risk from flooding is the OPW Catchment Flood Risk Assessment and Management (CFRAM) Programme. The CFRAM Programme focussed on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, identified as being at potentially significant risk of flooding. The proposed feasible measures, both structural and non-structural, identified for AFAs are outlined in Flood Risk Management Plans.
I am advised by the OPW that the finalised Flood Risk Management Plans were submitted to the Department of Public Expenditure and Reform in Summer 2017 for an independent review of the environmental assessments. Having now received the outcomes of the independent review, the Commissioners of Public Works expect in the coming weeks to formally submit the Flood Risk Management Plans for my approval.
It is important to note that the flood maps are community based maps and provide a useful resource for planning and emergency response and cannot be used for commercial purposes. The insurance industry uses its own flood modelling tools for assessing the level of risk to individual properties.
Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.
55. Deputy Jack Chambers asked the Minister for Finance the number of applications made and amount of tax relief generated under section 848A of the Taxes Consolidation Act 1997, as amended by the Finance Act 2013 in each of the years 2013 to 2017. [10694/18]
View answer56. Deputy Jack Chambers asked the Minister for Finance the number of applications made and amount of tax relief generated under section 848A of the Taxes Consolidation Act 1997, in each of the years 2010 to 2013. [10695/18]
View answerI propose to take Questions Nos. 55 and 56 together.
I am advised by Revenue that the number of donors and the Exchequer cost of donations to Approved Bodies for the years 2010 to 2015 (the latest year for which data is available), are published in the ‘Cost of Tax Expenditures’ table which is available on Revenue’s website at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
A summary of the information is set out in the following table:
|
Year |
Exchequer cost of donations (€million) |
Number of applications |
|
2010 |
€51.1 |
146,800 |
|
2011 |
€47.1 |
140,400 |
|
2012 |
€46.8 |
138,000 |
|
2013 |
€45 |
135,200 |
|
2014 |
€27.6 |
124,600 |
|
2015 |
€38.1 |
148,300 |
57. Deputy Michael McGrath asked the Minister for Finance the status of an application for a reduced rate of stamp duty on certain farm consolidation transactions; and if he will make a statement on the matter. [10739/18]
View answerThe measure to allow a farmer to claim relief from stamp duty where he or she sells and purchases land for the purposes of consolidating an existing farm holding has been introduced, subject to a commencement order after a full consideration of any administrative or EU state-aid requirements.
For the relief to operate, there must be both a sale and a purchase of land within a period of 24 months of each other. Where other qualifying conditions are satisfied, stamp duty will only be paid to the extent that the value of the land that is purchased exceeds the value of the land that is sold. A reduced rate of 1% will be charged on the excess, if any, of the purchase value. If the sale takes place before the purchase, then relief will be given at the time of purchase. However, if the purchase takes place first, then stamp duty will have to be paid but can subsequently be refunded when the sale takes place.
A number of qualifying conditions must be satisfied before the relief can apply. The most important condition is that Teagasc must issue a certificate stating that a sale and purchase or an exchange of farmland was made for farm consolidation purposes. This is the certificate that is currently required in relation to the capital gains tax relief. The criteria to be used by Teagasc for this purpose and the information to be supplied to Teagasc are contained in guidelines published by the Minister for Agriculture, Food and the Marine.
A purchaser of farmland must retain ownership of the farmland for a period of five years and must use the land for farming. Where any part of the land is disposed of before the end of this five-year holding period, the stamp duty relieved can subsequently be recovered by Revenue, or partly recovered as appropriate.
The Deputy may wish to note that the measure will apply to all transactions which took place after 01 January 2018, so farmers who consolidate their holdings prior to the commencement of the relief will still be eligible.
My Department is continuing to explore the potential State Aid aspects of the measure and this may take a little time.
58. Deputy Willie Penrose asked the Minister for Finance the steps he will take to restore tax allowance in respect of trade union subscriptions for persons who are affiliated to recognised trade unions (details supplied); and if he will make a statement on the matter. [10743/18]
View answerIn October 2016 my Department published a report on Tax Expenditures which included a review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees. The review found that a scheme of tax reliefs for trade union subscriptions would fail to meet the evaluation threshold laid down by the Department’s Tax Expenditure Guidelines. The review stated that:
"The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight."
Given the conclusion of the review, I have no plans to reintroduce such a relief.
59. Deputy Róisín Shortall asked the Minister for Finance the details of each instance of advertorial content commissioned by his Department and agencies under its remit in the past 12 months; the date this content was published; the purpose of this content; the cost of its publication; the publication or platform on which it was published, in tabular form; and if he will make a statement on the matter. [10773/18]
View answerDetails of the advertorial content commissioned by my Department and by the bodies under the aegis of my Department in the past 12 months are in the following table.
Of the seventeen bodies under the aegis of my Department, I am informed that thirteen did not commission advertorial content in the period requested. It was not possible for one body to respond to this information request in the time available and therefore I will make arrangements to provide a response in line with Standing Orders.
|
Department/ Body |
Date |
Purpose of Content |
Cost of Publication |
Publication or platform |
|
Department of Finance |
19th March 2017 |
Advertorial featured the Department’s win in the IITD awards, having captured the award for Best Learning and Development organisation (Medium) for 2017. This gave the Department the opportunity to show that it benchmarks itself against other top class organisations in Ireland and in doing so drives our peoples growth through Learning and Development using the 70-20-10 model, which is set out in our L&D strategy. This strategy is endorsed and driven by the Executive Board and this leadership from the top ensures that the Department can “be the best it can be”. |
€2870.54 |
Sunday Business Post (MediaVest) |
|
10th March 2017 Switching your bank: 5 things you may not have known |
||||
|
23rd March 2017 It could be time to break up with your old bank - here's why |
||||
|
28th April 2017 How to switch your bank: All the tricky questions answered |
||||
|
29th January 2018 Not happy with your credit card? Here's how to switch it in 4 easy steps |
||||
|
5th February 2018 6 questions everyone should ask about their credit card |
||||
|
Department of Finance |
8th February 2018 QUIZ: How Much Do You Know About Your Credit Card? |
To promote bank switching as part of a range of competition measures agreed with the European Commission. |
The advertorial content was part of a larger media buy and did not have a separate cost. As part of a range of competition measures agreed with the European Commission under their respective EU-Restructuring plans, AIB and Permanent TSB are required to provide funding for this public awareness campaign. |
thejournal.ie |
|
Bodies under the Aegis of the Department of Finance |
||||
|
Credit Review Office |
Spring 2017 Q1.2017 Summer 2017 Autumn 2017 Q3.17 |
Raising awareness of bank credit issues and the profile of the Credit Review Office |
€1,000.00 €1,000.00 €1,000.00 €1,000.00 €1,000.00 |
Better Business In Business Better Business Better Business In Business |
|
Investor Compensation Company Limited |
6th December 2017 Failure of Charleville Credit Union Limited |
Statutory notice required to invite claims for investor compensation. |
€2,589.73 |
Irish Examiner Newspaper |
|
18th September 2017 |
€4,305 |
Better Business – Ashville Media Group |
||
|
10th July 2017 |
€2,890.50 |
Chambers Ireland SME FUNDING SPECIAL - Ashville Media Group |
||
|
26th January 2018 |
€2,330.85 |
Business Plus |
||
|
ISME Yearbooks were mailed out on 23rd November 2017 by IFP to ISME members. |
€3,567 |
ISME Yearbook – Irish Food Publishers Limited |
||
|
19th September 2017 |
€1,230 |
NPC Brochure |
||
|
1st June 2017 |
€2,029.50 |
Accountancy Ireland – Chartered Accountants Ireland |
||
|
31st May 2017 |
€2,330.85 |
Business Plus |
||
|
25th January 2017 |
€2,330.85 |
Business Plus |
||
|
Strategic Banking Corporation of Ireland |
4th December 2017 |
Brand Awareness |
€2890.50 |
Better Business – Ashville Media Group |
60. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the financial commitments that are in place from Britain regarding the PEACE and INTERREG programmes post Brexit; and if he will make a statement on the matter. [10511/18]
View answer61. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the financial commitments that are in place from the EU regarding the PEACE and INTERREG programmes post Brexit; and if he will make a statement on the matter. [10512/18]
View answerI propose to take Questions Nos. 60 and 61 together.
As the Deputy will be aware, the Irish Government is committed to the successful implementation of the current PEACE and INTERREG Programmes and to successor programmes post-2020.
I am pleased to be able to advise the House that this ambition is now reflected in the terms of the joint progress report on the Brexit negotiations that was agreed between the EU and UK in December. Both parties agreed to honour their commitments to the current programmes and to examine the possibilities for future support favourably.
Moreover, in its Communication to the European Council that accompanied the joint progress report, the Commission committed itself to proposing the continuation of the programmes in its proposal for the next Multiannual Financial Framework, expected in May.
62. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the reason under the new licence for the national lottery, all unclaimed money does not revert to the prize fund; the value of these moneys since the new licence came into place; and if he will make a statement on the matter. [10513/18]
View answer63. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if the €16 million noted in the regulator of the national lottery's report relating to unclaimed prizes before 31 December 2016 will be added to the prizes available as per the old licence or if it will be used by the new licensee for advertising purposes; and if he will make a statement on the matter. [10514/18]
View answerI propose to take Questions Nos. 62 and 63 together.
The National Lottery was established under the National Lottery Act 1986 and continues in accordance with the National Lottery Act 2013. A competition for the award of the twenty year licence to operate the National Lottery took place between May and October 2013. On 27 February 2014 the Minister for Public Expenditure and Reform granted the new licence to Premier Lotteries Ireland (PLI) Limited who then entered into a transition phase with the previous operator, An Post National Lottery Company. Premier Lotteries Ireland Ltd was incorporated on 22 May 2013 and began operations as Operator of the National Lottery on 30 November 2014. A fee of €405m was received into the Exchequer for the National Lottery licence in 2014.
In addition, the following amounts have been transferred to the Exchequer from the National Lottery in each of the years 2008 to 2017:
2008 €265m
2009 €275m
2010 €250m
2011 €230m
2012 €220m
2013 €210m
2014 €178m
2015 €193m
2016 €219m
2017 €227m
The current Licence, which was agreed in February 2014, defines an "expired unclaimed prize" as any prize not claimed within the time frame and in the manner specified in the relevant Lottery Game rules. Clause 6.9.2 of the Licence provides that any expired Unclaimed Prizes shall be forfeited in favour of the Licensee, provided that such Expired Unclaimed Prizes shall be used: solely for the promotion of the National Lottery and/or the Lottery Games (excluding Base Marketing), in a manner determined by the Licensee, which shall include the funding of special draws and additional or top-up prizes; and which may include Incremental Marketing and advertising of the National Lottery and/or Lottery Games; or such other activities to promote the National Lottery and/or Lottery Games as specifically agreed in writing with the Regulator from time to time; and no later than within three hundred and sixty five (365) days from the day on which they were forfeited in favour of the Licensee.
The Licence is available to read on the website of the Regulator of the National Lottery: http://www.rnl.ie/publications-and-research/legislation-licence/.
I have been advised by the Regulator of the National Lottery that the information sought regarding the value of expired unclaimed prizes since the new licence came into place is the Licensee’s confidential information and under Clause 20.6.1 of the Licence cannot be disclosed by the Regulator. I am further advised that the Regulator has asked the Licensee’s permission to disclose this confidential information and the Licensee is considering this request.
As regards the €16.092 million in respect of expired unclaimed prizes arising under the previous Licence with An Post National Lottery Company, it should be noted that this is a complex legal matter requiring consideration of detailed technical and legal argument. Officials in my Department are consulting with the parties involved with a view to bringing the matter to a timely conclusion.
64. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his plans to introduce a contributory pension scheme for community employment supervisors who could contribute to such a scheme (details supplied); and if he will make a statement on the matter. [10447/18]
View answer65. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if a gratuity or redundancy scheme for community employment supervisors (details supplied) will be introduced; and if he will make a statement on the matter. [10448/18]
View answerI propose to take Questions Nos. 64 and 65 together.
I refer the Deputy to my reply to Parliamentary Question No. 262 answered on 16 January 2018.
66. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his plans to improve the salary scale for community employment supervisors (details supplied); and if he will make a statement on the matter. [10449/18]
View answerAs the Deputy will appreciate, I have no direct responsibility for the pay arrangements for this cohort of workers who are not public servants.
67. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he will report on the meeting on 28 February 2018 with a group (details supplied); and if he will make a statement on the matter. [10450/18]
View answerThe Deputy will appreciate that it is not possible to report on the meeting in question having regard to the fact that, at the time of the actual finalisation of the reply to this written question, it has yet to take place.
