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Thursday, 12 Jul 2018

Written Answers Nos. 77-92

Capital Expenditure Programme

Questions (77, 78)

Fergus O'Dowd

Question:

77. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Foreign Affairs and Trade the funding provided towards capital projects in counties Meath and Louth in 2016, 2017 and to date in 2018, by project name, location and cost in tabular form. [31991/18]

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Fergus O'Dowd

Question:

78. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Foreign Affairs and Trade the applications submitted for funding and projects from Meath and Louth county councils in 2016, 2017 and to date in 2018 for projects decided upon or in progress in tabular form. [32007/18]

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Written answers

I propose to take Questions Nos. 77 and 78 together.

My Department administers a number of funding programmes, including Ireland's official overseas development programme, Irish Aid, and the Emigrant Support Programme which typically supports Irish communities overseas. Smaller funding programmes include the Reconciliation Fund through which my Department awards funding to organisations and projects aimed at advancing peace and reconciliation in Northern Ireland, on a cross-border basis and between Ireland and Britain. Information on Reconciliation Fund grants awarded to 2017 is available at www.dfa.ie/reconciliation.

The information requested by the Deputy in relation to County Councils is set out in the table below. Funding was provided to Louth County Council in 2016 and 2017 only. No funding was provided to Meath County Council in the period specified. My Department has not provided funding towards capital projects in either county in the time period specified.

Applicant

Project name and year

Location

Funding approved

Louth County Council

Comhairle na nÓg -Youth Councils for Peace [2016]

Dundalk, Co. Louth

€18,000

Louth County Council

Comhairle na nÓg -Youth Councils for Peace [2017]

Dundalk, Co. Louth

€25,000

Louth County Council

Local Authorities Museums Network 2018

Dundalk, Co. Louth

€5,000

Brexit Negotiations

Questions (79)

Brendan Smith

Question:

79. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the recent statement by the British Prime Minister, Mrs. May, following the British Government meeting last Friday regarding Brexit negotiations; and if he will make a statement on the matter. [32042/18]

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Written answers

At its meeting at Chequers, the UK Government reached internal agreement on its approach to the future EU-UK relationship. The detail of this position will be set out in a White Paper, due to be published today.

Ireland will consider these proposals with its EU partners, guided by the mandate provided by the European Council in March. Taking account of an assessment of the proposals by Michel Barnier and his team, there will be an opportunity to exchange views among the EU27 at the forthcoming meeting of the General Affairs Council in Brussels on 20 July. This meeting will also take stock of the negotiation following the latest round which is scheduled to take place during week beginning 16 July.

Ireland's position is that we want to see the closest possible relationship between the EU and the UK. At the same time, it is vital to our economic interests that the EU's Single Market is fully protected. It would not be good for Irish businesses and investment if the UK gained a competitive advantage as a result of Brexit.

On the backstop for the border, our position remains clear. While our preference is still for an overall EU-UK relationship which would resolve all issues, it remains essential that a backstop is agreed which provides certainty that in any circumstances, and no matter what the outcome of the negotiations on the EU-UK future relationship, a hard border will be avoided.

The European Council made it very clear last month that nothing is agreed until everything is agreed, warning that there can be no Withdrawal Agreement, and therefore no transition, without an agreement on the backstop.

What is needed now is for the negotiations to be intensified. Time is short. It is hoped that the UK’s proposals on the future relationship as agreed by the British cabinet will help the overall negotiations to move forward and to agree the backstop.

Military Uniforms

Questions (80)

Clare Daly

Question:

80. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade if US army personnel were authorised to wear military combat uniforms in Galway city during the second week of June 2018; if so, the basis for this authorisation; and if not, his plans to address the issue of foreign military personnel wearing uniforms on streets here. [32181/18]

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Written answers

The wearing of foreign military uniforms in the State is governed by section 317 of the Defence Act 1954 which prohibits the wearing of a foreign military uniform in the State without ministerial permission. My Department routinely receives requests from various States, including the US, for the wearing of military uniforms for a variety of reasons - attendance at official meetings or functions, diplomatic events, seminars or courses. Where permission is granted, the applicable conditions and restrictions are specified and explained in detail.

With regards to the specific instance raised in the Deputy’s question, my Department would welcome more specific information in order to investigate the matter further.

Living Wage

Questions (81)

Billy Kelleher

Question:

81. Deputy Billy Kelleher asked the Tánaiste and Minister for Foreign Affairs and Trade the cost of implementing a living wage of €11.90 for all employees directly employed and-or in agencies funded by his Department; and if he will make a statement on the matter. [32224/18]

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Written answers

The remuneration of the staff of my Department is as sanctioned by the Department of Public Expenditure and Reform in line with Government policy.

The best estimate of the cost per annum is in the region of approximately €450,000 to €1,050,000 to include permanent and temporary staff. It is difficult to determine the exact cost of introducing an hourly rate of €11.90 for relevant employees of the Department of Foreign Affairs and Trade as those affected by any change would include temporary clerical officers and this figure varies from year to year.

There are no State Agencies funded by my Department.

Dublin-Monaghan Bombings

Questions (82)

Brendan Smith

Question:

82. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the outcome of the most recent discussions he had with the Secretary of State for Northern Ireland regarding the need for the British Government to respond positively and without further delay to the unanimous requests of Dáil Éireann to provide access to papers and files pertaining to the Dublin and Monaghan bombings of 1974; and if he will make a statement on the matter. [32253/18]

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Written answers

The implementation of the All-Party Dáil motions relating to the Dublin and Monaghan bombings is a priority for the Government, as highlighted in the Programme for a Partnership Government.

The All-Party motion on the 1974 Dublin Monaghan bombings that was adopted by the Dáil on 25 May 2016 has, like those adopted in 2008 and 2011, been conveyed to the British Government. These motions call on the British Government to allow access by an independent, international judicial figure to all original documents relating to the Dublin and Monaghan bombings, as well as the Dublin bombings of 1972 and 1973, the bombing of Kay’s Tavern in Dundalk and the murder of Seamus Ludlow.

I met with Justice for the Forgotten in April to hear their perspective and update them on the Government’s continuing engagement on legacy issues, including with the British Government on the Dáil motions. Officials from my Department and the Department of Justice and Equality also held a consultation meeting with Justice for the Forgotten on 4 July to hear their further views on the implementation of the legacy framework provided for under the Stormont House Agreement.

The Government is committed to actively pursuing the implementation of the all-Party Dáil motions, and has consistently raised the issue with the British Government.

I am actively engaged with the British Government on an ongoing basis on this issue, as are officials from my Department. I have consistently underlined to the British Government that the Dáil motions represent the consensus political view in Ireland that an independent, international judicial review of all the relevant documents is required to establish the full facts of the Dublin and Monaghan atrocities. I have also underlined that the absence of a response from the British Government is of deep concern to the Government and indeed this House, and I have emphasised the urgent need for such a response.

The Government will continue to engage with the British Government on the request in relation to the bombings, and pursue all possible avenues to achieve progress on this issue, consistent with the request made by this House.

Northern Ireland

Questions (83)

Brendan Smith

Question:

83. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the progress to date in implementing the Stormont House Agreement; the status of the institutions proposed to deal with legacy issues; if such issues will be discussed at the forthcoming British-Irish intergovernmental conference; and if he will make a statement on the matter. [32259/18]

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Written answers

Dealing with outstanding issues relating to the legacy of the Troubles is of the utmost importance to the Government. The Programme for a Partnership Government commits to building on the progress made to establish the comprehensive institutional framework for dealing with the past that is provided for under the 2014 Stormont House Agreement.

Victims and survivors have had to wait for far too long for a suitable and effective system in Northern Ireland to deal with the legacy of the Troubles. Over the last 12 months, I have engaged extensively with the Secretary of State for Northern Ireland and with all of the political parties to support a way forward on the implementation of the Stormont House Agreement legacy framework. Secretary of State Bradley and I are agreed on the imperative of now moving ahead with the establishment of the Stormont House Agreement legacy framework.

On 11 May, I welcomed the launch of a public consultation by the British Government on their draft legislation to establish the legacy bodies provided for in the Stormont House Agreement. This is an important step in the implementation of the Stormont House Agreement, the full implementation of which will help to provide families with a means of accessing whatever truth and justice is possible in their case and will be an important step towards achieving a truly reconciled society in Northern Ireland.

While this consultation is about UK legislation to establish the institutions, legislation will also be required in this jurisdiction to provide for cooperation with the Stormont House Agreement legacy bodies. The drafting of legislative proposals for consideration by the Government and Oireachtas is advancing, led by my colleague, the Minister for Justice and Equality.

Regarding legacy inquests in Northern Ireland, I have consistently emphasised in my discussions with the Secretary of State for Northern Ireland and with the political parties the need to ensure proper resourcing of these inquests, and I will continue to raise this matter with the Secretary of State. I have also urged all those with responsibilities in relation to legacy inquests to move forward as quickly as possible with the implementation of the proposals made by the Lord Chief Justice of Northern Ireland in this regard.

The Government remains determined to see progress on the establishment of the Stormont House Agreement institutions, on legacy inquests in Northern Ireland and on other outstanding legacy issues, including the three all-Party Motions adopted by this House on the Dublin and Monaghan bombings.

Progress on these issues is crucial in order to meet the legitimate needs and expectations of victims and survivors and to contribute to broader societal reconciliation as an integral part of the Peace Process.

A meeting of the British-Irish Intergovernmental Conference will take place on 25 July. The Government looks forward to this meeting of the Conference in accordance with the Good Friday Agreement. Both Governments as co-guarantors of the Agreement are fully committed to working together to achieve the earliest operation of the devolved institutions, and to working together for the mutual benefit of all of the peoples of these islands. Legacy issues will be discussed as part of the next meeting of the Conference and in accordance with the Good Friday Agreement.

Northern Ireland

Questions (84)

Brendan Smith

Question:

84. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the recent discussions he has had with authorities in the United States of America regarding the appointment of a special envoy to Northern Ireland; and if he will make a statement on the matter. [32400/18]

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Written answers

Successive US Administrations have provided immensely valuable support to the Peace Process over the last three decades. This support continues to be provided by the current US Administration, as well as by our many friends in the US Congress.

The Government strongly appreciates the sustained engagement by the current US Administration, including by the US State Department, in relation to Northern Ireland and we look forward to this continuing into the future.

In this regard, the Government has indicated that we would welcome the appointment of a Special Envoy for Northern Ireland by the current Administration, as part of its continuing support for the Peace Process.

The Taoiseach and I have discussed the political process in Northern Ireland with representatives of the US Administration and we have raised the matter of the appointment of a Special Envoy for Northern Ireland during these engagements.

Ireland’s Ambassador in Washington and senior officials of my Department in Dublin are also reiterating the Government’s support for the appointment of a Special Envoy for Northern Ireland in their ongoing contacts with representatives of the US Administration.

Continued support and engagement by the US Administration and Congress will remain an essential support to the ongoing efforts by the British and Irish Governments, as co-guarantors of the Good Friday Agreement, to get the devolved, power-sharing institutions of the Agreement operating again as soon as possible.

Motor Insurance

Questions (85)

John Curran

Question:

85. Deputy John Curran asked the Minister for Finance the steps he is taking to encourage new companies to enter the motor insurance market; and if he will make a statement on the matter. [31753/18]

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Written answers

As the Deputy is aware, the Cost of Insurance Working Group was established in July 2016. The initial focus of the Working Group was the issue of rising motor insurance premiums and the Report on the Cost of Motor Insurance was published in January 2017, containing 33 recommendations with 71 associated actions.

In its second phase, the Working Group examined the cost of business insurance, in particular employer liability insurance and public liability insurance. This work culminated in the publication in January 2018 of the Report on the Cost of Employer and Public Liability Insurance, with 15 recommendations and 29 associated actions to be carried out.

In terms of progress with regard to the implementation of both Reports, the Working Group has published five quarterly update reports, most recently on 11th May last. This quarterly update shows that of the 50 separate relevant deadlines within the Action Plan of the Report on the Cost of Motor Insurance up to the end of Q1 2018, one relates to an action no longer being proceeded with; of the remaining 49 deadlines, 40 have been met. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”. In relation to the eight actions from the Report on Employer and Public Liability Insurance due for completion in Q1 2018, all eight were completed on time.

It is envisaged that the next quarterly Progress Update will be completed by the end of July and will be ready for publication on the Department of Finance website shortly after. This update will provide details on the implementation of all of the recommendations from both primary Reports. However, a particular focus will be placed upon the 14 actions across the two Reports – seven from each – with Q2 2018 deadlines.

While the overarching objective of these Reports and their recommendations is to deliver fairer premiums for consumers and businesses, one of the means of achieving this is to attempt to set the broader conditions for an insurance market which is competitive and attractive to new entrants in both the motor and business insurance markets.

In this regard, I believe the enactment of the soon to be published Central Bank (National Claims Information Database) Bill, following its approval by the Cabinet on 5th July 2018, will be a major help from a transparency perspective. This should help in developing an understanding of how claims costs are impacting premiums, in particular understanding the relationship between the price paid by a customer for motor insurance and the cost to insurance undertakings. The database will be established in 2019, subject to the Oireachtas agreeing the legislation.

In summary, therefore, I am confident that the full implementation of all the recommendations from the Report on the Cost of Motor Insurance – in parallel with those from the Report on the Cost of Employer and Public Liability Insurance – can lead to desired outcomes such as improving transparency in relation to the cost of claims, improving the personal injuries claims environment, reducing the levels of costs within the claims process and lessening the problem of insurance fraud, which taken cumulatively should assist in making the Irish motor insurance market more appealing to new entrants.

Motor Insurance Costs

Questions (86)

Éamon Ó Cuív

Question:

86. Deputy Éamon Ó Cuív asked the Minister for Finance the steps being taken to ensure that insurance loadings for older cars reflect the actual increased risk and that insurance companies cannot apply loadings unless they are justified by objective analysis; his plans to introduce legislation to reflect such a requirement; and if he will make a statement on the matter. [31924/18]

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Written answers

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies, through legislation or otherwise, as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles.

In making their individual decisions on whether to offer cover and what terms to apply, insurers will also use a combination of rating factors, which include the age and type of the vehicle, as well as the age of the driver, the relevant claims record and driving experience, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to the age of a vehicle and the availability of cover, different insurance companies will use different age thresholds.

In addition, the Deputy should note that the Central Bank as prudential regulator has a responsibility under the current framework, to ensure that firms assess and price risk appropriately. This ensures that firms have the ability to pay all policyholders’ claims in full without recourse to public or consumer funds. In this regard, I would refer the Deputy to Chapter 4 of the Cost of Insurance Working Group’s Report on the Cost of Motor Insurance for more information on the regulatory environment, and in particular the Solvency II Directive, which is the primary legislative framework with regard to the prudential supervision of insurance companies.

Finally, Department officials have been engaging with Insurance Ireland in relation to the availability and cost of insurance for older cars, and have been informed that certain insurance providers have recently changed their acceptance criteria and increased their vehicle age threshold levels. Notwithstanding this, I understand that the Minister of State Michael D’Arcy TD intends to write to Insurance Ireland in order to try and get a more detailed perspective on this matter.

VAT Registration

Questions (87)

Billy Kelleher

Question:

87. Deputy Billy Kelleher asked the Minister for Finance his views on correspondence (details supplied) regarding the issues a company is having doing business as a start-up here. [32139/18]

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Written answers

I am advised by Revenue that the company in question recently applied to register for employer’s PAYE/PRSI and Value Added Tax (VAT). The company was immediately registered as an employer but the VAT application was selected for a routine pre-registration inspection in line with Revenue’s risk management protocols for VAT registration.

The company did not demonstrate sufficient capacity to start trading during the pre-registration visit and the VAT registration application was not processed on the basis that there was no taxable activity taking place. Revenue confirmed the position to the company on 3 July 2018 but also advised that the application could be re-submitted once the company is in a position to demonstrate sufficient capacity to start trading.

Pensions Data

Questions (88)

Eamon Ryan

Question:

88. Deputy Eamon Ryan asked the Minister for Finance the amount that would be raised by limiting the tax relief on a pension in cases in which that pension fund has already accumulated enough funds to provide a pension of €48,000 per annum. [32169/18]

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Written answers

The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes. The threshold was introduced in the Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements.

Information on the numbers and values of individual pension funds or on individual accrued benefits in pension schemes are not generally required to be supplied to Revenue. Therefore, they have advised that they have no readily available underlying data or methodology on which to base reliable estimates of the possible yield which might be realised from further limiting tax relief on pensions.

Also, it is not possible to quantify the measure outlined by the Deputy because pension funds operate under varying degrees of risk and because the size of a pension fund required to provide a pension of €48,000 per annum will vary depending on, amongst other things, how close to retirement an individual is and how the rate of inflation changes over the intervening period.

The Deputy may wish to note that the Revenue Ready Reckoner, published at this link shows, on page 11, a number of scenarios for changes to Income Tax relief on pensions.

Carbon Tax Yield

Questions (89, 91)

Eamon Ryan

Question:

89. Deputy Eamon Ryan asked the Minister for Finance the estimated amount an increase in carbon tax from €20 per tonne to €40 per tonne would raise. [32170/18]

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Eamon Ryan

Question:

91. Deputy Eamon Ryan asked the Minister for Finance the amount that would be raised by increasing diesel prices to the same level as petrol. [32172/18]

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Written answers

I propose to take Questions Nos. 89 and 91 together.

Regarding Question 32170/18, I am advised by Revenue that an increase in carbon tax from €20 per tonne to €40 per tonne is estimated to yield €424 million per annum (including both additional Carbon & VAT) on a straight line basis.

Regarding Question 32172/18, it is assumed that the Deputy is referring to equalising the Excise rates applied on diesel to those applied on petrol. I am advised by Revenue that, based on consumption estimates for 2018, the amount raised by such a measure is estimated at €353 million per annum (including both additional Excise & VAT).

Tax Yield

Questions (90)

Eamon Ryan

Question:

90. Deputy Eamon Ryan asked the Minister for Finance the amount that would be raised by ending fossil fuel subsidies in sectors (details supplied). [32171/18]

View answer

Written answers

I am advised by Revenue that the amount raised from ending subsidies in the manner suggested by the Deputy are as follows.

For Marked Gas Oil (MGO), it is estimated that the equalisation of Mineral Oil Tax (on MGO) to that on diesel for road vehicles would yield in the region of €400 million per annum assuming no behavioural change resulting from the price increase.

Regarding the Diesel Rebate Scheme (DRS), the extent to which refunds are made in any given year through the scheme is dependent on the average price of diesel. For example, refunds under the scheme in 2017 were €1 million while the highest year to date was 2014 with refunds amounting to €21 million.

In relation to the exemption of domestic users from tax on electricity produced from fossil fuels, it is assumed that the Deputy is referring to the use of fossil fuels for the production of electricity. Mineral oil, gas and solid fuels used for the production of electricity are relieved from taxation in accordance with the Energy Tax Directive. The amount of electricity produced from fossil fuels directly supplied to domestic users is not available to Revenue and as such, the yield resulting from the changes proposed by the Deputy cannot be estimated.

Regarding reduced rates of VAT applied to heating oil and the reclaim of VAT on diesel for business, VAT returns do not require the tax on particular activities or products to be separately identified. As a consequence, it is not possible for Revenue to estimate the potential yield from changes to these activities.

Question No. 91 answered with Question No. 89.

Tax Yield

Questions (92)

Eamon Ryan

Question:

92. Deputy Eamon Ryan asked the Minister for Finance the amount that would be raised by introducing a levy of €2.50 per tonne on aggregates extracted from the ground such as rock, sand, gravel and so on used in the construction industry. [32173/18]

View answer

Written answers

I am advised by the Revenue Commissioners that there is currently no reliable basis to produce an estimate of the potential amount raised from such a levy as Revenue do not hold data on the extraction of these materials.

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