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Thursday, 12 Jul 2018

Written Answers Nos. 109-124

Strategic Banking Corporation of Ireland

Questions (109, 110, 111)

Billy Kelleher

Question:

109. Deputy Billy Kelleher asked the Minister for Finance the approximate regulatory and administrative cost in addition to other potential costs of enabling the SBCI to lend directly to SMEs; and if the concept of relicensing the SBCI in order for it to develop branches for direct lending has been examined. [32110/18]

View answer

Billy Kelleher

Question:

110. Deputy Billy Kelleher asked the Minister for Finance the bank and non-bank on lender of SBCI funds in 2017 and to date in 2018; and the monetary amount loaned to SMEs in tabular form. [32111/18]

View answer

Billy Kelleher

Question:

111. Deputy Billy Kelleher asked the Minister for Finance the lending targets the SBCI has set for lending to SMEs in 2017 and 2018; and the progress to date on same. [32112/18]

View answer

Written answers

I propose to take Questions Nos. 109 to 111, inclusive, together.

The Strategic Banking Corporation of Ireland (SBCI) is Ireland’s national promotional institution. The purpose of the SBCI is to deliver effective financial supports to Irish SMEs that address failures in the Irish SME finance market as well as encouraging competition, innovation and the efficient and effective use of EU resources and financial instruments. The SBCI achieves this purpose through both on-lending and risk-sharing activities. 

The SBCI aims to ensure on-lenders and financial intermediaries maximise the benefit and the service provided to Irish SMEs as well as protecting taxpayer money and the investment of both State and European institutions.  

The SBCI does not set annual lending targets, however, during 2017 a total of €391m of SBCI facilities were drawn by SMEs. This included €145m of funding drawn under the SBCI Agriculture Cash Flow Support Risk Sharing scheme. Figures for 2018 have not been published at this point. Since inception, a total of €920m in SBCI funding and Guarantee products has been drawn by Irish SMEs.

Below, in tabular form, is a list of SBCI on lenders and the liquidity that they possess.

Date

On Lender

Liquidity

Risk Sharing

Dec-14

Bank of Ireland

€200m

 

Feb-15

Allied Irish Bank

€200m

 

Oct-15

Finance Ireland

€51m

 

Nov-15

Merrion Fleet

€25m*

 

Nov-15

Allied Irish Bank

€200m

 

Dec-15

Ulster Bank

€75m

 

May-16

First Citizen Agri Finance

€40m

 

Jun-16

Bibby Financial Services Ireland

€45m

 

Nov-16

Fexco Asset Finance

€70m

 

Jan-17

Bank of Ireland

 

€65m

Jan-17

Allied Irish Bank

 

€60m

Jan-17

Ulster Bank

 

€25m

Mar-18

Bank of Ireland

 

€128m

Mar-18

Allied Irish Bank

 

€122m

Mar-18

Ulster Bank

 

€50m

May-18

Bibby Financial Services Ireland

€25m

 

 *Facility closed in July 2017 following the sale of Merrion Fleet to Société Générale

SBCI liquidity funding remains available through Finance Ireland, First Citizen, Bibby Financial Services Ireland and Fexco Asset Finance.  The €300m Brexit Loan Scheme was launched in March 2018 and was allocated to AIB, Bank of Ireland and Ulster Bank as detailed above.

Amending the SBCI lending model to include a branch network to lend directly to SMEs is contrary to current Government Policy, which is for the State to exit the banking sector.  The SBCI operates on a market neutral basis. The opportunity to obtain SBCI funding as an on-lender or to act as a financial intermediary participating in the SBCI’s risk-sharing guarantee schemes is open to any finance provider that can demonstrate that it fulfils the SBCI’s requirements through a standard, consistent and rigorous processes.  Furthermore, in order for the SBCI to directly lend to SMEs, a change in legislation would have to occur and the SBCI would have to become a regulated entity with the Central Bank of Ireland.

In addition, as I am sure the Deputy is aware, there would be immediate State Aid and Competition issues that would have to be addressed.  Currently the SBCI does not come into conflict with state aid rules as it does not directly lend, rather it acts as a wholesale financial institution providing low cost, long-term wholesale funding to both bank and non-bank finance providers. These on-lenders must in turn pass on the benefit of that low cost finance to the final SME borrowers. 

Therefore no analysis has been conducted for such a proposal.

Knowledge Development Box

Questions (112)

Billy Kelleher

Question:

112. Deputy Billy Kelleher asked the Minister for Finance the number of firms by size (details supplied) that have applied for the knowledge development box scheme for SMEs since being established in tabular form. [32120/18]

View answer

Written answers

The 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 (available at this link) 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.

Tax Credits

Questions (113)

Billy Kelleher

Question:

113. Deputy Billy Kelleher asked the Minister for Finance the number of firms by size (details supplied) that have applied for the research and development tax credit in each of the years 2016 to 2017 and to date in 2018, in tabular form. [32121/18]

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Written answers

I am advised by Revenue that information in respect of the number of companies by range of number of employees, and associated annual cost for companies, claiming research and development tax credit is published on the Revenue website at this link.

This report contains information on the cost of the credit for the years 2004 to 2016, and more detailed information including claimants by number of employees for the years 2011 to 2016. Data for the year 2017 are not yet available as tax returns for the year 2017 are due to be filed later this year and analysis of the claims for research and development relief will be published thereafter.

Similarly, it is not possible to provide information in respect of 2018 tax returns at this time, as these tax returns are not due to be filed until next year.

The requested information, obtained from the Revenue website, concerning the R&D Tax Credit for 2016 has been provided in tabular form below.

No. of Employees

No. of Claimants

Cost in €m

Less than 10

470

38

11 to 49

550

48

50 to 249

334

61

250+

152

523

Brexit Issues

Questions (114)

Billy Kelleher

Question:

114. Deputy Billy Kelleher asked the Minister for Finance the contingency plans the Revenue Commissioners has in place for a no deal hard Brexit scenario; and if plans have been made to date or estimates computed for the increased customs officials that may be needed and higher level customs clearance training and advice for third country trading for a hard Brexit scenario. [32138/18]

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Written answers

Co-ordination of the whole-of-Government response to Brexit is being progressed through the cross-Departmental coordination structures chaired by the Department of Foreign Affairs and Trade. This includes ‘no deal’ contingency planning. Such planning provides base line scenarios for the impact of Brexit across all sectors. This approach is also enabling the modelling of potential responses under different scenarios, such as one where a withdrawal agreement is concluded and where a Free Trade Agreement is the basis for the future relationship between the EU and the UK.

My Department, along with the Revenue Commissioners, is actively engaged in this preparatory work which has intensified in recent months and is currently well advanced.

Revenue’s contingency planning includes examining the full range of scenarios that may apply including a ‘no deal’ Brexit.  This work includes an assessment of the potential number of additional staff that will be required as a result of Brexit. However, given the uncertainty that exists as to the ongoing Article 50 negotiations and the future customs arrangements that may apply, it is too early to be definitive on the potential resources that may be required.

I am also advised by Revenue that their preparations include a review of existing customs technology required for processing the entry and exit of goods to and from the State. This consists of a suite of IT systems through which traders submit customs declarations and supporting documents.

Brexit has the potential to result in a significant increase in customs transactions which necessitates performance testing and tuning of those IT systems. At present, approximately 1.4 million customs declarations are processed each year, representing import and export trade with non-EU countries.  In addition, some 57,000 transits are processed.  While there may be an increase in processing requirements, after Brexit, estimation of the increase in demand is difficult and unreliable because of the possibility of accompanying changes of behaviour in terms of logistics and supply chain arrangements, and uncertainty about the exact arrangements that will be negotiated between UK and EU.   

In addition to performance testing for Brexit, I am advised by Revenue that work is ongoing to deliver on the ambitious IT programme related to the implementation of the Union Customs Code, introduced in 2016. This programme of work is also reflected across all of the EU Member States. The new systems will be scaled to accommodate maximum possible demand and contingency planning is being designed if customs procedures are required between Ireland and the UK in the short term.

Revenue has a presence at the ports, airports, mail and parcel depots, and is in ongoing discussion with the relevant stakeholders, including on the implications of a much higher proportion of traffic requiring customs clearance.

Film Industry Tax Reliefs

Questions (115)

Eamon Ryan

Question:

115. Deputy Eamon Ryan asked the Minister for Finance the annual cost of the section 481 film relief for the film production industry; and if he will make a statement on the matter. [32159/18]

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Written answers

Section 481 TCA 1997 provides a 32% payable credit for eligible expenditure on film production in Ireland. It is available to Irish and international film production companies that are resident in the State or in an EEA State and carry on business in the State through a branch or subsidiary.   Section 481 was substantially changed (in Finance Act 2013, Finance (no.2) Act 2013, and Finance Act 2014) from an investor led Income Tax scheme to a Film Corporate Tax Credit.

I am advised by Revenue that information in respect of the tax cost and the number of claims received in respect of Section 481 relief for the years 2004 to 2015, the latest years available, are available on the Revenue website at this link.

Annual information in respect of claims included in the 2016 corporation tax returns will be published later this year, however lists of beneficiaries under the scheme from 2016 to June 2018 are currently available on the Revenue website at this link.

With regard to the published data, it should be noted that data for the years 2015 on relate to the restructured credit available to producer companies. Data for prior years relate to the former investor-led section 481 relief, under which tax relief was granted to individuals investing in a qualifying company.

Living Wage

Questions (116)

Billy Kelleher

Question:

116. Deputy Billy Kelleher asked the Minister for Finance 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. [32223/18]

View answer

Written answers

I wish to inform the Deputy that the cost of implementing a living wage of €11.90 per hour for all employees directly employed by my Department would be €79,609.98 annually.

With regard to the cost of implementing a living wage of €11.90 per hour for all employees in agencies funded by my department, the Disabled Drivers Medical Board of Appeal is the only body funded by my Department and there would be no additional cost to that organisation if they implemented a living wage of €11.90 per hour for all employees.

Disabled Drivers and Passengers Scheme

Questions (117)

Kevin O'Keeffe

Question:

117. Deputy Kevin O'Keeffe asked the Minister for Finance the reason a specific category of persons (details supplied) are excluded from qualifying for a scheme; and if the qualifying criteria to include this category will be reconsidered. [32299/18]

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Written answers

As you may be aware, the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax. 

The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant, the scheme cost €65m in each of 2016 and 2017. This figure does not include the revenue foregone in respect of the relief from Motor Tax provided to members of the Scheme. 

The Scheme and qualifying criteria were designed specifically for those with severe and permanent physical disabilities meeting the medical criteria set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. From time to time I receive representations on behalf of individuals and organisations who believe they would benefit from the scheme but do not qualify under the criteria. While I have sympathy for such cases, given the scale and scope of the scheme, there are no plans to review the medical criteria for eligibility at this time.

Garda Station Expenditure

Questions (118)

Jim O'Callaghan

Question:

118. Deputy Jim O'Callaghan asked the Minister for Public Expenditure and Reform the cost of security and maintenance for Garda stations that are closed but have not been disposed of in tabular form; and if he will make a statement on the matter. [31703/18]

View answer

Written answers

I can confirm the totals costs incurred by the Office of Public Works (OPW) on security and maintenance on vacant former Garda Stations for 2017 was €217,766.01 and €193,792.60 are costs which have been incurred up to 10th July 2018

These costs include any maintenance or other actions considered by OPW as being necessary to protect the structure and value of the property asset and/or for health and safety reasons.  A breakdown of the costs is provided below:

 

 

Costs 2017

Costs 2018(up to 10 July)

Maintenance

€115,837.70

€54,024.89

Mechanical & Electrical

€79,261.91

€26,638.16

Security

€22,666.44

€113,129.56

Total

€217,766.01

€193,792.60

Garda Station Closures

Questions (119)

Jim O'Callaghan

Question:

119. Deputy Jim O'Callaghan asked the Minister for Public Expenditure and Reform the income generated from Garda stations that were disposed of by station; when each station was disposed of; his plans to sell other stations in tabular form; and if he will make a statement on the matter. [31704/18]

View answer

Written answers

I am advised by the Commissioners of Public Works that they have sold the following former Garda stations since 2014, with a total value of €3,228,000.

Former   Garda Station

County

Sale   Amount

Sale Date

 

 

 

 

Aclare

Sligo

€40,000

31 July   2015

Baldwinstown  

Wexford

€75,000

27 March   2014

Ballacolla

Laois

€15,000

07   September 2016

Ballinahowen

Westmeath

€20,000

22 January   2016

Ballinakill

Laois

€92,000

28 July   2015

Ballinure

Tipperary

€100,000

05 June   2014

Ballyfarnon

Roscommon

€40,000

19 October   2016

Ballymore

Westmeath

€55,000

24 June   2014

Ballyragget

Kilkenny

€141,000

28 July   2015

Ballywilliam

Wexford

€110,000

28 July   2015

Carrigaholt

Clare

€105,000

03   November 2015

Churchill

Donegal

€62,000

14   December 2015

Cloone

Leitrim

€50,000

27 March 2014

Crossakiel

Meath

€6,000

03 June   2015

Doochary

Donegal

€35,000

06   February 2017

Doon

Limerick

€50,000

05 June   2014

Dromod

Leitrim

€142,000

14   December 2015

Dundrum

Tipperary

€90,000

05 June   2014

Easkey

Sligo

€65,000

14   December 2015

Fenit

Kerry

€110,000

22   November 2016

Finea

Cavan

€56,000

24 June   2014

Geashill

Offaly

€123,000

28 July   2015

Glencolumbkille

Donegal

€47,500

22 March   2017

Grangemockler  

Tipperary

€103,000

27 March   2014

Inchigeela  

Cork

€55,000

27 March   2014

Inistioge

Kilkenny

€132,000

28 July   2015

Johnstown

Kilkenny

€115,000

28 July   2015

Kilmessan

Meath

€200,000

24 June   2014

Kiltealy

Wexford

€86,000

28 July   2015

Kiltyclogher

Leitrim

€58,000

11   December 2014

Labasheeda

Clare

€18,500

04   December 2015

Lahardane

Mayo

€70,000

08 January   2016

Lauragh

Kerry

€115,000

16   February 2016

Lettermore  

Galway

€63,000

27 March   2014

Longwood

Meath

€76,000

24 June   2014

Mallow   Road

Cork City

€260,000

27 March   2014

Meelin

Cork

€44,500

17   February 2015

Menlough

Galway

€50,000

14   February 2017

Newtowncashel  

Longford

€50,000

27 March   2014

Rathowen

Westmeath

€15,000

25 June   2015

Tournafolla

Limerick

€42,500

21 October   2016

Tullyvin

Cavan

€45,000

24 June   2014

 

 

 

 

Total

 

€3,228,000

 

The Programme for a Partnership Government commits to requesting the Policing Authority to oversee a review of ‘both the boundaries of Garda districts and the dispersement of Garda stations in rural areas and in developing urban and suburban areas with a view to ensuring both an efficient and optimum geographical distribution of stations’.  In this regard, the Acting Garda Commissioner has requested the Office of Public Works not to dispose of any further former Garda stations. 

In light of this request from An Garda Síochána and pending the outcome of this further review of closed Garda stations, the Commissioners of Public Works have no plans at this time to dispose of any other former Garda stations that were closed as part of An Garda Síochána’s 2012 and 2013 Rationalisation Programme.

Civil Service Staff Data

Questions (120, 121)

Charlie McConalogue

Question:

120. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if an employee that transfers from the HSE to the Civil Service is entitled to carry forward their increments; if it is public service policy that such an employee would retain all of their increments to date; if his attention has been drawn to the fact that this policy is accepted across all of the public service and the HSE; and if he will make a statement on the matter. [31796/18]

View answer

Charlie McConalogue

Question:

121. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if temporary clerical officers are afforded a special privilege of being entitled to add up all previous relevant service, regardless of breaks in service, to determine the rate payable in relation to salary increments in the Civil Service for clerical officers; if so, if they are entitled to carry all accrued service over to a permanent position secured while acting as a temporary clerical officer; and if he will make a statement on the matter. [31831/18]

View answer

Written answers

I propose to take Questions Nos. 120 and 121 together.

I have responsibility for matters relating to pay and appointment in the civil service. In general it is policy for staff in the civil service to progress on incremental salary scales on the basis of a single point, subject to both satisfactory attendance and performance criteria being met.  The award of an increment ordinarily falls for consideration on an annual basis.  

The Protection of Employees (Fixed-Term Work) Act 2003 came into effect on 14 July 2003. Since that date the provisions of the Act have been applied to the pay of fixed-term workers employed in the civil service. Specifically, people appointed to civil service grades in a temporary capacity are placed on the same payscale as a “comparable permanent employee”. Section 2 of the Act states that a “permanent employee” means an employee who is not a fixed-term employee.

Such fixed-term workers have all the service under temporary contracts at the same grade aggregated for the purposes of incremental progression. In the event that a fixed-term employee obtains a permanent appointment in the same grade, the fixed term service should be used in calculating the point of scale. 

An appointee to a post in the civil service (either permanent or fixed-term) who has had previous service in the civil service, or elsewhere in the public service, may be entitled to  incremental credit in respect of that service. Incremental credit as it applies in the Civil Service is based on industrial relations agreements concluded between management and staff.  The scheme of incremental credit for Clerical Officer/Executive Officer grades is the subject of a collective agreement reached at General Council and the terms are set out in Circular 21/2004 and General Council Report 1443 both of which are available on www.circulars.gov.ie “

The pay of an officer who transfers from the HSE to the Civil Service depends on the terms of the transfer. An officer who is redeployed to the civil service under agreements made with staff representative bodies may, in certain circumstances,  carry the pay scale for the position.

An officer who transfers to a post on foot of an open recruitment competition transfers on the terms of service prescribed by the competition including starting pay. The conditions regarding incremental credit may also apply if the officer has previous qualifying service in a public service body.

A currently serving officer who transfers to an analogous grade on foot of an open competition may enter the pay scale at a point equivalent to the existing salary under a policy that was adopted on 30 November 2015.

Community Employment Schemes Supervisors

Questions (122, 137)

Robert Troy

Question:

122. Deputy Robert Troy asked the Minister for Public Expenditure and Reform when community employment supervisors can expect the implementation of the recommendations of the Labour Court. [32085/18]

View answer

Martin Heydon

Question:

137. Deputy Martin Heydon asked the Minister for Public Expenditure and Reform the status of pension entitlements for community employment supervisors; if further meetings of the community sector high level forum to discuss same are planned; and if he will make a statement on the matter. [32301/18]

View answer

Written answers

I propose to take Questions Nos. 122 and 137 together.

I refer the Deputy to my response to PQ 28777/18 of 3 July 2018.

Departmental Staff Data

Questions (123)

Fiona O'Loughlin

Question:

123. Deputy Fiona O'Loughlin asked the Minister for Public Expenditure and Reform the ratio of men and women at each Civil Service grade within his Department; and if he will make a statement on the matter. [31698/18]

View answer

Written answers

The breakdown of women to men at each civil service grade within the Department of Public Expenditure and Reform, based on data from 30th June 2018, is set out in the table below:

DPER

Female

Male

Total

% of Female Staff

Secretary General

0

1

1

0%

Deputy Secretary

0

1

1

0%

Assistant Secretary/Director

4

3

7

57.1%

Chief Medical Officer

0

1

1

0%

Principal Officer

16

18

34

47.0%

Assistant Principal

58

64

122

47.5%

Higher Executive Officer

55

45

100

55%

Administrative Officer

36

38

74

48.6%

Executive Officer

32

17

49

65.3%

Clerical Officer

27

8

35

77.1%

Occupational Physician

2

1

3

66.6%

Occupational Health Nurse

2

0

2

100%

Auditor

1

1

2

50%

Interns

1

2

3

33.3%

Temporary Clerical Officer

2

0

2

100%

Grand Total

236

200

436

54.1%

Acknowledging that there is some disparity in the gender balance at senior grades within the civil service the Government is fully committed to redressing this imbalance and to meeting the 50/50 gender balance target in appointments at senior levels. The Civil Service Management Board is currently considering the ESRI Research Series report A Study of Gender in Senior Civil Service Positions in Ireland, published in December 2017, and is developing actions to address the key issues deterring women from seeking senior positions in the Civil Service.

Flood Relief Schemes Status

Questions (124)

John Brady

Question:

124. Deputy John Brady asked the Minister for Public Expenditure and Reform the status of the flood protection scheme for the Avoca River in Arklow; when the scheme will be finalised; and if he will make a statement on the matter. [31790/18]

View answer

Written answers

Wicklow County Council (WCC) is leading the assessment and development of a viable, cost effective and sustainable Flood Relief Scheme for the Avoca River, Arklow which will be funded by the Office of Public Works (OPW).  Engineering and Environmental consultants are working to advance the detailed design of the scheme.  The process of identifying a preferred scheme includes a detailed assessment of a range of flood risk management measures to determine their technical, economic, social and environmental viability.

Consultation with the public and key stakeholders has taken place. Three public information days have been held where the proposals for the preferred scheme have been made available for examination, review and feedback from members of the public and the views of the public have been taken on board where practical.

The main elements of the preferred scheme consist of flood defence walls, upstream and downstream dredging, lowering of the floor, underpinning and scour protection at Arklow Bridge, new flood embankment on north side and upstream of Arklow Bridge and widening of the river channel downstream of Arklow Bridge

An Environmental Impact Assessment Report is currently being finalised and WCC aim to submit the proposed scheme to An Bórd Pleanála for planning permission by the end of 2018.

The timeline for progression of the proposed Scheme to construction will depend on planning but it is hoped to be in a position to commence works by the first quarter of 2020.

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