Written Answers Nos. 59-77
59. Deputy Eamon Ryan asked the Tánaiste and Minister for Foreign Affairs and Trade the steps he has taken or will take over the widely reported issue of migrant family separations in the United States of America to help alleviate the situation. [29420/18]
View answerI was appalled by the images which recently emerged of immigrant children being separated from their parents at the southern US border and held in detention by the US authorities.
I made my, and the Government’s, view of this policy very clear when I spoke on June 20 in the course of the Dáil debate on this issue.
On that occasion, I stated that the policy of separating children from their parents was inhumane and simply wrong, and I urged the US Government to immediately reverse the policy.
Ireland, in common with all Member States of the European Union, has ratified the Convention on the Rights of the Child, which establishes clear universal standards for protecting all children. The Convention states that signatories shall ensure that children shall not be separated from their parents against their will, unless such a separation is necessary for the best interests of the child.
As I stated in my contribution to the Dáil debate, I cannot see any way in which a policy of separating children from their parents in such circumstances could be said to be in the best interests of children.
In advance of the Dáil debate, I spoke that afternoon with the Chargé d’Affaires in the US Embassy in Dublin, Mr. Reece Smyth, and conveyed to him the Government’s strong views on the issue. He undertook to convey those views without delay to the relevant authorities in Washington DC.
I was pleased to see that, following the grave concerns which were expressed both domestically and internationally about the use of this policy, President Trump signed an Executive Order on the afternoon of June 20, Washington DC time, aimed at ending the practice of separation. I welcome this move towards a more humane practice of border protection and immigration control.
I very much hope that we have seen the last of this unwarranted practice and the priority now must be reuniting all of the affected children with their parents, without delay.
60. Deputy Robert Troy asked the Minister for Finance the number of customs officers that are employed by each port here in tabular form. [28699/18]
View answerSee the following table:
|
Port |
Number of Staff |
|
Dublin Airport |
118 |
|
Dublin Port |
85 |
|
Shannon Airport |
20 |
|
Rosslare Port |
25 |
|
Cork Port /Airport |
20 |
It should be noted that Revenue is a fully integrated tax and customs administration and that it is not possible to disaggregate resources deployed exclusively at any given time on customs. Enforcement strength in ports and airports is augmented with additional personnel on a risk-assessment basis, or when particular operations are taking place against illegal activity. The number of additional resources available to support these border enforcement activities is approximately 130 posts.
61. Deputy Robert Troy asked the Minister for Finance the customs facilities that are in place at ports; and the breakdown of each port's capacity of temporary storage facilities for customs clearance. [28700/18]
View answerI am advised by Revenue that customs facilities in place at Ireland's ports include container compounds, mobile x-ray scanners, canine units, examination & seizure sheds, secure safes, baggage hall areas, interview rooms and general office administration facilities. The facilities at each location are determined, inter alia, by the nature and volume of traffic through a particular port and the needs of economic operators operating through or at such locations.
I am advised by Revenue that certain customs facilities used by or deployed by Revenue such as the mobile x-ray scanners and customs dogs are not location specific - they may be deployed having regard to risk assessment undertaken by Revenue.
I am advised by Revenue that a temporary storage facility is a customs approved place inside or outside the approved area of a sea or airport, where non-Union goods are placed in storage prior to being placed under a customs procedure or re-exported. Temporary storage facilities are owned by an independent economic operator and are not owned by Revenue. In the first instance the relevant economic operator must apply to Revenue to be authorised to operate a temporary storage facility - such an application is made electronically with the approval of such an application contingent on compliance with specific criteria and the putting in place of a comprehensive guarantee to cover any potential liability.
The breakdown of each port’s current temporary storage facilities for customs clearance is as follows:
|
Port |
Number of Temporary Storage Facilities |
|
Dublin Port |
3 |
|
Port of Cork |
3 |
|
Belview Port, Waterford |
1 |
62. Deputy Joan Burton asked the Minister for Finance if he will report on his meeting with the IMF Director General, Ms Christine Lagarde; and if he will make a statement on the matter. [29014/18]
View answerThe Managing Director of the IMF, Christine Lagarde, visited Dublin on 25-26 June to attend a conference, ‘The Euro at 20’, organised by the IMF together with the Central Bank of Ireland who also hosted the event
I met with Ms Lagarde on Monday 25th June during the course of this visit. The meeting did not have a formal agenda. However, in the course of the meeting we discussed developments in the Irish economy and the outlook for the period ahead. Our discussions also touched on EU and international economic and financial developments including Brexit.
This discussion took place in the context of the subsequently published International Monetary Fund Article IV Report on the Irish Economy. As the Deputy will be aware, the Article IV process is a requirement for all members of the Fund and takes place on a periodic, usually annual, basis. It is a long-standing element of Ireland’s regular engagement with the IMF and focusses on medium to longer-term policy issues. This year’s report recognises Ireland’s continued strong economic growth, leading to a rapid reduction in unemployment and strengthened public and private balance sheets. It also notes that our economy continues to grow at a pace well above the EU average and is approaching full employment. The report outlines that the outlook is expected to remain favourable, although significant external risks, in particular Brexit and an escalation in global protectionism, will pose challenges.
63. Deputy Joan Burton asked the Minister for Finance the evaluation which has been carried out in respect of the ongoing retention of the 9% VAT rate; the estimated cost of the tax reduction in 2018; the estimated cost in 2019; and if he will make a statement on the matter. [29091/18]
View answerMy Department has undertaken an economic review of the 9% VAT rate ahead of this year’s Budget and the report is currently in the finalisation stages.
The Revenue Commissioners most recent estimate for reverting the reduced 9% VAT rate back to 13.5% is that it would bring in extra revenue of €527 million.
I am also advised by the Revenue Commissioners that an estimate for the cost of the measure in 2019 is not yet available.
64. Deputy Robert Troy asked the Minister for Finance if the tax relief incentive for union subscriptions will be restored for primary school teaching staff. [29215/18]
View answerA review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on budget day 2016. The review may be found at the following link:
(http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf)
The review concluded that:
"... analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.
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 conclusions of the review, I have no plans to reintroduce such a relief.
65. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which Ireland's current borrowing requirement has fluctuated in each of the past ten years to date expressed as a percentage of GNP and GDP; and if he will make a statement on the matter. [29378/18]
View answerThe information requested by the Deputy is published by my Department on an annual basis as part the Budget Statistics https://www.finance.gov.ie/updates/budget-statistics-december-2017/. It is reproduced in the following table for the Deputy's convenience.
|
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
|
Exchequer Balance (€ million) |
-1,619 |
-12,714 |
-24,641 |
-18,744 |
-24,918 |
-14,892 |
-11,503 |
-8,189 |
-64 |
-1,018 |
1,910 |
|
% of GDP |
-0.82% |
-6.77% |
-14.49% |
-11.18% |
-14.49% |
-8.48% |
-6.38% |
-4.21% |
-0.02% |
-0.37% |
0.64% |
|
% of GNP |
-0.96% |
-7.89% |
-17.52% |
-13.47% |
-18.04% |
-10.49% |
-7.57% |
-4.97% |
-0.03% |
-0.45% |
0.79% |
66. Deputy Micheál Martin asked the Minister for Finance if he will report on the proposal to set up Sparkasse here; his views on same; and if he will make a statement on the matter. [28645/18]
View answerMy Department, along with Minister Ring’s Department of Rural and Community Development, are tasked with fulfilling the Programme for a Partnership Government to "thoroughly investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions".
Local public banking is where there is public ownership, as opposed to private ownership, either by the state or other public body of a bank or other financial institution. The local public banks in Germany are called Sparkassen. The structure of the local public banking system means that these Sparkassen are not permitted to operate outside particular, specified geographic areas. The philosophy of local public banking is not profit maximisation. Instead, Sparkassen aim to promote the development of the local, regional economy of the area in which they operate. An important aspect of the business model of Sparkassen is building relationships and working closely with the SMEs located in their regional area.
A thorough consideration of the potential for local public banking in Ireland, based on the Sparkassen model, has been carried out by officials in my Department and the Department of Rural and Community Development. This work included a public consultation exercise, engaging with stakeholders and interested parties, as well as an analysis of a proposal put forward by Irish Rural Link and the Savings Banks Foundation for International Cooperation (SBFIC), the international development wing of the Sparkassen group. Consideration of the proposal of how the German model of local public banking could be implemented in Ireland included a number of meetings between officials from both departments and representatives from Irish Rural Link and SBFIC.
The report on local public banking has now been completed. Minister Ring and I circulated the report to all Government departments for comments and observations and it was jointly brought to Government at a Cabinet meeting in May. I am pleased to inform the Deputy that the report has now been approved by Government and I anticipate that it will be ready for publication in the near future.
As the Deputy will also be aware, there are already significant Government measures in place to support access to finance by Irish SMEs. These include the Strategic Banking Corporation of Ireland (SBCI), the Supporting SMEs Online Tool, the Microenterprise Loan Fund, Local Enterprise Offices, the Credit Review Office and the Credit and Counter Guarantee Schemes.
Finally, my Department is working with other Government departments to develop tailored and innovative schemes to meet the evolving needs of Irish SMEs, such as the Agricultural Cashflow Support Loan Scheme and the Brexit Loan Scheme I announced in Budgets 2017 and 2018 respectively.
67. Deputy Micheál Martin asked the Minister for Finance his plans to utilise post offices to provide additional banking services; and if he will make a statement on the matter. [28646/18]
View answerResponsibility for An Post rests with my colleague, Minister Naughton. Accordingly, Minister Naughton and his Department are better placed to provide further information and detail on the financial services provided by the post offices.
However, in the context of the report on local public banking that has been prepared by my Department and the Department of Rural and Community Development, there has been consideration of the financial services already provided by An Post and the credit unions, particularly in regional and rural areas.
I understand that An Post provides transactional banking services for AIB, Ulster Bank and Danske Bank customers, with circa 5 million transactions being undertaken in 2017, to a value of €1.5 billion. Additionally, there are a number of foreign exchange cash and card options at over 900 post office branches and An Post is Western Union’s largest agent in Ireland, facilitating foreign currency payments to and from over 200 countries for customers.
In 2017 An Post launched its Smart current account in the Irish market. An Post also offers Home, Motor, Life, Travel and Pet insurance through its wholly owned subsidiary One Direct, trading as Post Insurance, and is the main agent for State Savings products with in excess of €20 billion invested accounts and circa 17% of household savings.
An Post is the main channel for cash distribution to customers of the Department of Employment Affairs and Social Protection, and offers services such as Household Budget, Post Office Savings Bank, and Billpay to these customers which ensures that many people continue to have access to financial services and are not financially excluded. Over the last three years An Post has been part of Personal Micro Credit Scheme (PMC) with the Irish League of Credit Unions, the Department of Employment and Social Protection and other Government agencies. To date, over 5,000 people have availed of a PMC loan with repayments of over €5 million been made.
My Department will continue to work with the Department of Communication, Climate Action and Environment to facilitate the future development of An Post’s provision of financial services.
68. Deputy Pearse Doherty asked the Minister for Finance the number of times the Financial Services and Pensions Ombudsman has used its discretion to examine cases outside the designated time limits since the passing of the Financial Services and Pensions Ombudsman Act 2017; the circumstances of each case; and if he will make a statement on the matter. [28693/18]
View answerFirstly, I must point out that the Financial Services and Pensions Ombudsman is independent in the performance of his statutory functions. I have no role in the day to day workings of his office.
However, I have been advised by the Ombudsman that where a question of time-limits arises, the Ombudsman gives active consideration to all aspects of Section 51 of the Financial Services and Pensions Ombudsman Act 2017 which provides the following in relation to time-limits for the making of complaints to the Ombudsman:-
(1) A complaint in relation to conduct referred to in section 44(1)(a) that does not relate to a long-term financial service shall be made to the Ombudsman not later than 6 years from the date of the conduct giving rise to the complaint.
(2) A complaint in relation to—
(a) conduct referred to in section 44(1)(a) that, subject to the requirements specified in subsection (3), relates to a long-term financial service, or
(b) conduct referred to in section 44(1)(b), that is subject to the requirements specified in subsection (4),
shall be made to the Ombudsman within whichever of the following periods is the last to expire:
(i) 6 years from the date of the conduct giving rise to the complaint;
(ii) 3 years from the earlier of the date on which the person making the complaint became aware, or ought reasonably to have become aware, of the conduct giving rise to the complaint;
(iii) such longer period as the Ombudsman may allow where it appears to him or her that there are reasonable grounds for requiring a longer period and that it would be just and equitable, in all the circumstances, to so extend the period.
(3) The requirements referred to in subsection (2)(a) are that—
(a) the long-term financial service concerned has not expired or otherwise been terminated more than 6 years before the date of the complaint, and the conduct complained of occurred during or after 2002, or
(b) the Ombudsman has allowed a longer period under subsection (2)(iii).
(4) The requirements referred to in subsection (2)(b) are that—
(a) where the conduct occurred prior to the establishment day, that conduct occurred within the period between 13 April 1996 and the establishment day, or
(b) the Ombudsman has allowed a longer period under subsection (2)(iii).
(5) For the purposes of subsections (1) and (2)—
(a) conduct that is of a continuing nature is taken to have occurred at the time when it stopped and conduct that consists of a series of acts or omissions is taken to have occurred when the last of those acts or omissions occurred, and
(b) conduct that consists of a single act or omission is taken to have occurred on the date of that act or omission.
(6) The time limits specified in this section shall, on and after the establishment day,
apply to the following:
(a) any complaint received by the Financial Services Ombudsman or the Pensions Ombudsman which had not been assessed as to its suitability for consideration by the Financial Services Ombudsman or the Pensions Ombudsman, as the case may be;
(b) any complaint received by the Financial Services Ombudsman or the Pensions Ombudsman before the establishment day that was refused as being outside the applicable time limits in the Act of 1942 or the Act of 1990 respectively and that has been resubmitted to the Ombudsman on or after the establishment day.
The Ombudsman has confirmed that since the commencement of the 2017 Act on 1 January 2018, he has, where appropriate, engaged with both parties, to confirm all relevant details of the complaint before making a final determination as to whether the designated time-limits have been met. I understand that the Ombudsman has not yet had cause to rely on Section 51(2)(iii) to extend the time-limits to allow for the examination of a complaint outside of the designated time-limits.
69. Deputy Jonathan O'Brien asked the Minister for Finance the total Exchequer spending for each of the years 1997 to 2017 and to date in 2018. [28733/18]
View answer70. Deputy Jonathan O'Brien asked the Minister for Finance the Exchequer spending disaggregated by current and capital expenditure for each of the years 1997 to 2017 and to date in 2018. [28734/18]
View answer71. Deputy Jonathan O'Brien asked the Minister for Finance the Exchequer spending increases as a percentage of GDP for each of the years 1997 to 2017 and to date in 2018. [28735/18]
View answer72. Deputy Jonathan O'Brien asked the Minister for Finance the general Exchequer deficits as a percentage of GDP for each of the years 1997 to 2017 and to date in 2018. [28736/18]
View answer73. Deputy Jonathan O'Brien asked the Minister for Finance the Exchequer tax revenues as a percentage of GDP for each of the years 1997 to 2017 and to date in 2018. [28737/18]
View answerI propose to take Questions Nos. 69 to 73, inclusive, together.
The information requested by the Deputy is publicly available (up to 2016) in the Budgetary Statistics annual publication available at https://www.finance.gov.ie/what-we-do/public-finances/budgetary-framework/) and reproduced for the Deputy’s convenience in the following table. I have provided the requested ratios as a percentage of GDP. However, given the documented issues around GDP, particularly after the level shift for 2015’s GDP, I have also given these ratios over GNI* as a means to more accurately reflect the Exchequer developments.
Furthermore, the Parliamentary Budget Office (PBO) provides independent and impartial information, analysis and advice to the Houses of the Oireachtas. The Deputy can avail of the PBO as a source of financial and budgetary intelligence.
|
Exchequer Current Spending (€ millions) |
Exchequer Capital Spending (€ millions) |
Total Exchequer Spending (€ millions) |
Y-o-Y Growth in exchequer spending as a % of GDP |
Exchequer Balance as a % of GDP |
Exchequer Tax Revenue as a % of GDP |
Growth in exchequer spending as a % of GNI* |
Exchequer Balance as a % of GNI* |
Exchequer Tax Revenue as a % of GNI* |
|
|
1997 |
17,809 |
2,162 |
19,971 |
2.8 |
-0.4 |
26.1 |
3.0 |
-0.5 |
28.8 |
|
1998 |
18,301 |
2,934 |
21,235 |
1.6 |
1.2 |
25.5 |
1.7 |
1.3 |
28.3 |
|
1999 |
19,750 |
8,591 |
28,341 |
7.7 |
1.6 |
25.4 |
8.8 |
1.9 |
29.2 |
|
2000 |
20,634 |
6,527 |
27,162 |
-1.1 |
2.9 |
25.0 |
-1.2 |
3.4 |
28.7 |
|
2001 |
24,009 |
6,020 |
30,029 |
2.4 |
0.5 |
22.9 |
2.8 |
0.6 |
26.8 |
|
2002 |
26,126 |
6,868 |
32,993 |
2.2 |
0.1 |
21.5 |
2.6 |
0.1 |
25.8 |
|
2003 |
28,747 |
6,678 |
35,425 |
1.7 |
-0.7 |
22.1 |
1.9 |
-0.8 |
25.7 |
|
2004 |
30,764 |
6,729 |
37,493 |
1.3 |
0.0 |
22.8 |
1.5 |
0.0 |
26.5 |
|
2005 |
33,496 |
7,847 |
41,344 |
2.3 |
-0.3 |
23.1 |
2.6 |
-0.3 |
26.9 |
|
2006 |
37,090 |
8,662 |
45,752 |
2.4 |
1.2 |
24.6 |
2.7 |
1.4 |
28.4 |
|
2007 |
40,896 |
10,019 |
50,915 |
2.6 |
-0.8 |
24.0 |
3.1 |
-1.0 |
28.0 |
|
2008 |
44,693 |
11,043 |
55,736 |
2.6 |
-6.8 |
21.7 |
3.0 |
-7.9 |
25.4 |
|
2009 |
45,248 |
14,737 |
59,985 |
2.5 |
-14.5 |
19.4 |
3.1 |
-17.8 |
23.9 |
|
2010 |
47,020 |
7,963 |
54,983 |
-3.0 |
-11.2 |
18.9 |
-3.8 |
-14.1 |
23.9 |
|
2011 |
48,026 |
16,197 |
64,224 |
5.4 |
-14.5 |
19.8 |
7.0 |
-19.0 |
25.9 |
|
2012 |
49,565 |
7,060 |
56,625 |
-4.3 |
-8.5 |
20.9 |
-5.7 |
-11.2 |
27.5 |
|
2013 |
51,117 |
5,075 |
56,192 |
-0.2 |
-6.4 |
21.0 |
-0.3 |
-8.0 |
26.4 |
|
2014 |
49,757 |
8,836 |
58,593 |
1.2 |
-4.2 |
21.2 |
1.6 |
-5.3 |
26.7 |
|
2015 |
49,125 |
9,526 |
58,652 |
0.0 |
0.0 |
17.4 |
0.0 |
0.0 |
26.4 |
|
2016 |
49,648 |
6,428 |
56,075 |
-0.9 |
-0.4 |
17.4 |
-1.4 |
-0.5 |
25.3 |
|
2017 |
50,898 |
5,569 |
56,468 |
0.1 |
0.6 |
17.1 |
0.2 |
0.9 |
25.2 |
|
2018 |
22,460 |
1,430 |
23,890 |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
These figures are unaudited and as such are subject to change following the publication of the respective Finance Accounts
Figures for 2018 are up to and including May as the Exchequer figures for the month of June are yet to be finalised.
As only five months 2018 Exchequer data are available, a ratio using an annualised denominator is not appropriate.
74. Deputy David Cullinane asked the Minister for Finance the annual expenditure on commercial archaeology services in his Department by provider in each of the years 2013 to 2017 and to date in 2018; and if he will make a statement on the matter. [28746/18]
View answerIn reply to the Deputy's question, my Department has incurred no expenditure on commercial archaeology services in the years 2013 to 2017 and to date in 2018.
75. Deputy Jonathan O'Brien asked the Minister for Finance if he will address matters (details supplied) regarding the summer economic statement 2018. [28755/18]
View answerThis has been addressed in previous responses to Parliamentary Questions No. 110 and 114 sent to the Deputy. I have reproduced the answers as follows for the Deputy's convenience.
The following is a breakdown of ‘pre-committed fiscal space for expenditure’ in Table 3 of the Summer Economic Statement:
|
€ billions |
2019 |
2020 |
2021 |
|
Demographics |
0.4 |
0.4 |
0.5 |
|
Public Service Stability Agreement |
0.4 |
0.3 |
0.2 |
|
Carryover of Budget 2018 measures |
0.3 |
0.0 |
0.0 |
|
Capital expenditure* |
1.0 |
1.0 |
1.1 |
|
Pre-committed Expenditure |
2.1 |
1.7 |
1.8 |
*This is the amount in fiscal space terms allowing for capital smoothing.
The following is a breakdown of ‘other’ in Table 3 of the Summer Economic Statement:
|
€ billions |
2019 |
2020 |
2021 |
|
Resources available for allocation |
0.8 |
1.3 |
1.3 |
|
Other non-voted and general government movements |
0.2 |
-0.7 |
0.9 |
|
Other |
1.0 |
0.6 |
2.2 |
The Deputy is asking what impact an increase in exchequer capital expenditure – in addition to existing National Development Plan (NDP) commitments - of c. €1.2 billion, €0.96 billion and €1.02 billion would have on fiscal space in 2019-2021 respectively.
Compared with the figures in Table 3 of the 2018 Summer Economic Statement, the increases would use fiscal space in the order of an additional c. €300 million in 2019, €540.3 million in 2020 and €794.8 million in 2021.
While the fiscal rules would permit such additional spending, the additional money would have to be raised from an increase in taxation or borrowing, increasing the deficit.
The fiscal rules alone are not sufficient to ensure sensible fiscal policy – increasing borrowing as our economy approaches full employment would be clearly inappropriate. Sound budgetary policy respects the rules but must be guided by prudent judgement to avoid repeating the pro-cyclical mistakes of the past. The Government is committed to a budgetary policy that reduces, rather than increases, borrowing and supports steady and sustainable improvements in living standards.
76. Deputy Charlie McConalogue asked the Minister for Finance the status of the work of the cost of insurance working group; the steps he is taking to address the increase many businesses are experiencing in their insurance premiums; and if he will make a statement on the matter. [28792/18]
View answerBoth I and the Government are very conscious of the difficulties that increased insurance costs are having on the business sector.
Consequently, following the publication of its Report on the Cost of Motor Insurance in January 2017, the Cost of Insurance Working Group undertook an examination of the Employer Liability and Public Liability insurance sectors in its second phase of work. While a number of the recommendations in the Motor Report are relevant to the area of business insurance – in particular, the recommendations regarding the Book of Quantum, the Personal Injuries Assessment Board and the establishment of the Personal Injuries Commission – it became clear in preparing the Report on the Cost of Motor Insurance that there was also a pressing need to examine the drivers for the rising cost of business insurance.
The second phase work culminated in the publication on January 25 2018 of the Report on the Cost of Employer and Public Liability Insurance, following its approval by Government. This new Report makes 15 recommendations with 29 associated actions to be carried out, detailed in an Action Plan contained in the Report with agreed timelines for implementation.
The recommendations, covering three main themes, include actions to:
- Increase Transparency: enhance levels of transparency and improve data sharing and collection processes,
- Review the level of damages in personal injury cases: request that the Law Reform Commission undertake a detailed analysis of the possibility of developing constitutionally sound legislation to delimit or cap the amounts of damages which a court may award in respect of some or all categories of personal injuries, and
- Improve the personal injuries litigation framework: through a number of measures, including:
a. ensuring potential defendants are notified in sufficient time that an incident has occurred in relation to which a claim is going to be made against their policy;
b. tackling fraudulent or exaggerated claims; and
c. ensuring suitable training and information supports are available to the Judiciary to assist in the fair and consistent assessment and awarding of damages in personal injury cases.
All 29 actions are scheduled to be implemented before the end of 2019, with 26 due for completion this year. The fifth Quarterly Progress Update on implementation was published on 11 May and shows that in respect of the actions from the Report on the Cost of Employer and Public Liability Insurance due for completion in Q1 2018, all eight deadlines have been met.
In relation to the Report on the Cost of Motor Insurance, as you are aware from a recent PQ response, of the 50 separate deadlines set up to the end of Q1 2018 within the Action Plan, 40 have been met, while substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.
The sixth Quarterly Progress Update is expected to be published before the end of July 2018 and will focus in particular on the 14 actions – seven from each of the primary Reports – due for completion in Q2 2018.
Both of the primary Reports and all of the quarterly updates are available on the Department’s website, within “The Cost of Insurance Working Group” sub-section of the main “Insurance” section.
The Working Group will continue to focus on implementing the recommendations of the Report on the Cost of Employer and Public Liability Insurance in parallel with implementing those from the 2017 Motor Report. I am hopeful that the cumulative effects of the completion of the two Reports’ recommendations will include increased stability in the pricing of insurance for businesses.
77. Deputy Michael McGrath asked the Minister for Finance the number of companies that have claimed relief under the knowledge development box to date; the cost of the measure to date; the number of those companies that are considered small and medium sized enterprises; and if he will make a statement on the matter. [28819/18]
View answerThe Knowledge Development Box (KDB) applies for accounting periods commencing on or after 1 January 2016. A claimant company has a period of up to 24 months to make a claim for KDB relief.
I am informed by Revenue that a small number of companies (less than 10) with accounting periods ended on or before 31 December 2016 have claimed KDB relief to date. As indicated in Revenue’s recently published report on Corporation Tax (https://www.revenue.ie/en/corporate/documents/research/ct-analysis-2018.pdf ), the tax cost of these claims to date is in the region of €5 million. Due to taxpayer confidentiality, Revenue cannot comment further on the size or nature of the claimant companies to date.
Given the supporting documentation required, companies have a 24 month time frame available to avail of the KDB and it is anticipated that more companies will make use of this 24 month time frame. As such, KDB claims in respect of the year ended 31 December 2016 may be claimed for the year ended 31 December 2017. Therefore, further claims in respect of the year ended 31 December 2016 may be made up to end September 2018.
