Written Answers Nos. 126-143
126. Deputy Seán Crowe asked the Tánaiste and Minister for Foreign Affairs and Trade if Ireland will support the upcoming United Nations General Assembly motion from Cuba which condemns the US blockade of Cuba and calls for it to be immediately lifted. [38274/18]
View answer127. Deputy Seán Crowe asked the Tánaiste and Minister for Foreign Affairs and Trade when he plans to bring the EU-Cuba Political Dialogue and Co-operation Agreement before Dáil Éireann for ratification (details supplied); and the status of his progress in this regard. [38275/18]
View answerI propose to take Questions Nos. 126 and 127 together.
Ireland, along with our EU partners, has been a consistent supporter of the annual resolution put forward by Cuba at the United Nations General Assembly regarding the US economic blockade of Cuba. We have voted in support of this resolution on all of the 26 previous occasions that it has been put forward by Cuba.
Ireland’s position on the United States’ trade embargo of Cuba is long-standing and clear. We believe that the embargo serves no constructive purpose. Ireland, along with the other member states of the EU, is firmly of the view that the lifting of the embargo would facilitate an opening of the Cuban economy to the benefit of the Cuban people.
Ireland objects to unilaterally imposed measures that impede the economic and commercial relations of EU member states with Cuba and that are contrary to commonly accepted rules of international trade. Ireland believes that the economic embargo seriously hampers the economic development of Cuba and negatively affects its people.
Ireland looks forward to receiving the draft resolution from Cuba on 31 October this year, and will review and consider the resolution as on the previous 26 occasions.
As well as bilateral engagement with Cuba, Ireland also engages with Cuba by way of the EU-Cuba relationship. The EU-Cuba Political Dialogue and Cooperation Agreement marks an important point in this relationship. The Agreement is the EU’s first bilateral agreement with Cuba, and will improve conditions for EU-Cuba trade and investment. The EU is Cuba’s second most important trading partner, Cuba’s biggest external investor and the source of one third of the 3.5 million tourists visiting the island each year.
I view the EU-Cuba Political Dialogue and Cooperation Agreement as an important step in further developing our relationship with Cuba. While most of the agreement has been provisionally applied since November 2017, its full application requires ratification by the EU once all member States have completed their own internal legal procedures. As of now, fourteen member states have notified that they have done so. On the bilateral front, Ireland and Cuba will meet for Political Consultations on 1 October in Dublin. We are in the process of completing our own internal legal procedures, and the EU-Cuba Political Dialogue and Cooperation Agreement will be brought before Dáil Éireann for ratification once it has been debated by the Select Committee of Foreign Affairs and Trade. I have requested officials in my Department that they ensure that the notification process is fully completed by the end of the year.
128. Deputy Róisín Shortall asked the Tánaiste and Minister for Foreign Affairs and Trade the expenditure savings that are earmarked for his Department for 2019 that are not accounted for in the mid-year expenditure report or are not included in the fiscal space calculations for 2019. [38487/18]
View answerAs the Deputy will appreciate, my officials are currently in discussion with officials in the Department of Public Expenditure and Reform (DPER) regarding the Department’s 2019 Estimates provisions for the Department’s two Votes, Vote 27 – International Co-operation and Vote 28 – Department of Foreign Affairs and Trade. These discussions will obviously take account of any savings that the Department can identify in the provision of existing services in 2019 and will be factored in to the decisions on the Department’s 2019 Estimates provisions due to be announced on Budget Day, on 9 October 2018. I can assure the Deputy that it is the Department’s ongoing policy to seek to identify any expenditure savings that can be made across the Department’s two Votes, particularly in the context of any requests to DPER for funding for new or additional expenditure measures.
129. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade his views on recent protests in Nicaragua; the steps being taken at EU level to address this issue; the measures that have been taken at EU level to secure the release of those who have been arbitrarily detained, who includes amongst them a Belgian national; and if he will make a statement on the matter. [38742/18]
View answerI am aware of the recent protests in Nicaragua and of the case of the Belgian-Nicaraguan medical student who was detained, to which the Deputy refers. The right to freedom of expression and to peaceful demonstration are fundamental to a functioning democracy. I wholeheartedly condemn the use of violence and intimidation, and the arbitrary detention of citizens attempting to peacefully express their views. The recent events in Nicaragua are deeply concerning. The recent expulsion of the UN Office of the High Commissioner for Human Rights (OHCHR) following the publishing of its report detailing the worrying human rights abuses that have taken place in the country, was yet another troubling development.
I call on the Nicaraguan Government to seriously consider the findings of the OHCHR report and take urgent action to implement its recommendations. I would also urge it to allow the OHCHR officials to re-enter the country and continue their valuable work. Their presence is fundamental for the restoration of trust to all parties. Full co-operation and access should also be given to the Inter-American Commission on Human Rights.
Ireland engages on this issue regularly at EU and UN level, and supports the clear EU position and strong statements on the situation. Ireland also supports EU action taken to support international and local initiatives to address the human rights situation, promote a culture of peace, and to provide support to victims of the crisis and their families, including by advocating for the release of those arbitrarily detained, among them the Belgian-Nicaraguan national referred to by the Deputy.
I believe that inclusive dialogue remains the only way of negotiating a peaceful and democratic resolution to this crisis, and of restoring the trust of the Nicaraguan people in the country’s institutions. I encourage all relevant actors in Nicaragua to fully engage in the National Dialogue. Officials from the Department of Foreign Affairs and Trade in Dublin and in the Embassy of Ireland to Mexico, which is responsible for Ireland’s relations with Nicaragua, will continue to monitor the situation in Nicaragua and engage with human rights defenders and civil society organisations working on the ground.
130. Deputy Michael Moynihan asked the Tánaiste and Minister for Foreign Affairs and Trade the Brexit information meetings being planned to inform the public over the coming months. [38532/18]
View answerI have recently launched a national public information and outreach campaign aimed at Getting Ireland Brexit Ready. This campaign aims to provide information to citizens on the current state of play of the negotiations, the work going on across Government to prepare for Brexit, as well as the comprehensive range of financial and other supports that are available for business and other key affected sectors. As part of this campaign, a series of whole-of-Government Getting Ireland Brexit Ready public outreach events are being planned for across the country. The first phase of these events will begin on 5 October in Páirc Uí Chaoimh in Cork. This will be followed by events in Galway on 12 October, Monaghan on 19 October and Dublin on 25 October. These events will showcase the extensive work of the Government’s Departments and agencies, bringing together this experience and expertise in a ‘one stop shop’ for citizens and businesses in particular. Work to prepare Ireland for Brexit has been well underway across the Government and its agencies since before the UK even voted to leave the EU. These public outreach events provide an opportunity for interested individuals and businesses, including in the agri-food and tourism sectors, to access advice and information about Brexit preparedness and the range of support measures and resources the Government has put in place.
These events are free to attend, and interested members of the public can register via www.dfa.ie/brexit.
131. Deputy Michael Moynihan asked the Tánaiste and Minister for Foreign Affairs and Trade if he has met Mr. Michel Barnier recently. [38533/18]
View answerI met with Michel Barnier on 18 September in Brussels and discussed progress in the negotiations between the EU and UK on the Withdrawal Agreement and the Protocol on Ireland and Northern Ireland. Mr Barnier confirmed once again his view that without a backstop there can be no Withdrawal Agreement. He briefed me on his assessment that it is time to ‘de-dramatise’ the Protocol and focus on agreeing the workable solutions that it offers at its core. Ireland fully supports this approach and Mr Barnier’s continuing efforts to agree with the UK the Protocol on Ireland and Northern Ireland. At the GAC (Article 50), and subsequently at the informal European Council meeting in Salzburg on 20 September, our EU partners strongly reaffirmed their support for Ireland and the importance of agreeing a legally-binding backstop, as well as repeating their support for Michel Barnier in his efforts to conclude an agreement. As time is short, it is a matter of urgency that the UK engage constructively with Michel Barnier and his team with the objective of making progress on reaching an agreement on the backstop ahead of the European Council on 17-18 October.
132. Deputy Michael Moynihan asked the Tánaiste and Minister for Foreign Affairs and Trade his current views on the Chequers plan. [38534/18]
View answerThe UK Government White Paper of 12 July on the future relationship between the United Kingdom and the European Union remains the stated position of the UK Government on the framework which is to be agreed alongside the legal text of the Withdrawal Agreement. The EU’s negotiating approach remains as set out in the European Council Guidelines of April 2017 and March 2018. The Government has been consistently clear that Ireland wants the closest possible relationship between the EU and the UK, including on trade, in order to minimise the impact on our trade and economy. At the same time, it is vital to our economic interests that the EU's Single Market and Customs Union are fully protected. The Government acknowledged in June that the Chequers/White Paper proposals represented a useful contribution, but that much detailed analysis and discussion was required.
As reported by the EU Chief Negotiator, Michel Barnier, at the General Affairs Council (Article 50) on 18 September, in early discussions there has been a convergence of views in some areas, notably on future EU-UK cooperation on foreign policy and security, both internal and external. However, it is also clear that there are very substantial differences, in particular relating to the proposed future economic partnership. The President of the European Council, Donald Tusk, stated in Salzburg last week that the proposals on the future economic partnership will not work, not least because they risk undermining the Single Market.
It is now for the two sets of negotiators to take forward their work on the framework for the future relationship on the most intensive basis possible. At the same time, it remains essential, as underlined at Salzburg, that the Withdrawal Agreement, including the Protocol on Ireland and Northern Ireland, is also concluded speedily.
133. Deputy James Lawless asked the Minister for Finance if the disabled drivers and disabled passengers scheme criteria will be reviewed to include those who temporally use a wheelchair but who demonstrate a degenerative or progressive illness that will result in permanent dependency for using a wheelchair; and if he will make a statement on the matter. [38412/18]
View answerThe Disabled Drivers and Disabled Passengers Scheme provides relief from VAT and VRT, an exemption from motor tax and a grant in respect of fuel expenditure, on the purchase of an adapted car for transport of a permanently and severely disabled person within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
The scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise. To qualify for the scheme an applicant must be in possession of a primary medical certificate, which can be obtained from a Senior Medical Officer of the HSE, if an applicant meets one of the medical criteria set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
It is important to note that an applicant who is unsuccessful in securing a primary medical certificate can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal. An applicant can also re-apply for a primary medical certificate after six months if there is a deterioration in their condition.
From time to time representations are received on behalf of individuals who feel they would benefit from the scheme but do not qualify under the criteria. While I have sympathy for these cases, given the scale and scope of the scheme, I have no plans to expand the medical criteria beyond what is provided for in the Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
134. Deputy John Curran asked the Minister for Finance if all the properties leased for social housing by NAMA's national asset residential property service are deemed to be off-balance sheet; the additional number of social housing units it is hoped to provide by this approach over the next three years; and if he will make a statement on the matter. [38882/18]
View answerNational Asset Residential Property Services (NARPS) was established in 2012 as a special purpose vehicle in order to expedite the delivery, for social housing, of residential properties from the portfolio of assets controlled by NAMA debtors and receivers. NARPS purchases properties directly from NAMA debtors and receivers at market value and then onward leases these properties to local authorities and approved housing bodies on long term (20 year 9 months) leases, which include an option for the local authorities or approved housing bodies to purchase the units at market value during the latter part of the lease term. NARPS is a NAMA Group company and, as with other NAMA activities, its activities are considered to be off-balance sheet as far as Government accounting is concerned.
The NARPS portfolio is restricted to properties purchased from NAMA’s debtors and receivers. Given that NAMA is now well advanced on its deleveraging programme, there is limited scope for the portfolio to expand further over the next three years. From its establishment to date, NARPS has delivered 1,372 properties for lease, or which are contracted for lease, to local authorities and approved housing bodies.
135. Deputy Paul Kehoe asked the Minister for Finance the reason a person (details supplied) did not remain entitled to a local property tax, LPT, exemption due to an unfinished estate; the reason they were not advised of these changes and liability; and if he will make a statement on the matter. [38303/18]
View answerI am advised by Revenue that Local Property Tax (LPT) is operated on a self-assessment basis and it is the responsibility of the property owner to file and pay the tax due or ensure that their property is correctly entitled to any exemption before it is claimed.
The Finance (Local Property Tax) Act 2012 (as amended) provides for exemptions for certain properties. Section 10(2) provides that a residential property is not liable to LPT where it is situated in an unfinished housing estate and is contained in a list prescribed by the Minister for the Environment, Community and Local Government. The list is included in the Schedule to the Finance (Local Property Tax) Regulations 2013 (S.I. No. 91 of 2013).
The qualifying conditions are set out in detail on the LPT portal at www.revenue.ie and property owners have been consistently advised to check to ensure that their actual properties are included in the ‘prescribed list’ regardless of their location within an unfinished estate. If they have any doubt about their entitlement to an exemption, they are advised to contact the LPT Helpline.
Revenue conducts ongoing compliance programmes which include the review of LPT exemptions claimed. When the exemption claimed on the property of the person concerned was reviewed by Revenue, it was established that it was incorrectly claimed, as the property was not on the ‘prescribed list’ of exempt properties. A letter was sent by Revenue to the person advising her that she had incorrectly claimed the exemption and that the property was now liable to LPT for all years 2013 to 2018 inclusive (a total of €508). She was also invited to contact Revenue to discuss any aspect of the matter, if she needed.
I have been assured that if the payment of the arrears creates a difficulty for the person concerned, Revenue will be happy to discuss and agree a mutually acceptable phased payment arrangement.
136. Deputy Michael McGrath asked the Minister for Finance if he or his officials have been involved in discussions regarding the possibility of injecting additional capital into the European Investment Bank as a result of the UK's planned departure from the EU; his views on the possibility of the UK remaining a member of the EIB after it leaves the EU; the consequences for Ireland if the UK is no longer a member of the bank; and if he will make a statement on the matter. [38305/18]
View answerWhen the United Kingdom exits the EU on 29 March 2019, its departure from the EU will also mean that it will stop being a shareholder of the European Investment Bank (EIB). Article 308 of the Treaty on the Functioning of the European Union states that: “The members of the European Investment Bank shall be the Member States”. As a result, the UK will not remain a member of the EIB after it leaves the EU.
Once the UK stops being a shareholder of the EIB, the capital it has provided to the EIB will no longer be part of the Bank’s subscribed capital base. In recent months, the shareholders of the EIB, including Ireland, have been actively discussing means by which the capital base of the EIB can be strengthened to compensate for the loss of the UK shareholding. This may include, redenomination of some reserves and potentially an adjustment in the shareholdings of the EU Member States.
Assuming a positive outcome and applying the provisions in the Withdrawal Agreement on the repayment of the UK’s capital, the effect of UK withdrawal on EIB’s operations and financial capacity should be mitigated. This would include any direct impact on EIB lending to Ireland. The future relationship between the UK and the EIB will be subject to the broader negotiations on the future relationship between the UK and the EU.
137. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 61 of 2 December 2015, if progress has been made on allowing for bona fide transfers of pensions while safeguarding against avoidance schemes; and if he will make a statement on the matter. [38311/18]
View answerThe transfer of the deferred benefits of a member of an occupational pension scheme or a Personal Retirement Savings Account (PRSA) contributor's PRSA fund to an overseas pension arrangement is permitted, subject to the transfer complying with the Occupational Pension Schemes and Personal Retirement Savings Accounts (Overseas Transfer Payments) Regulations, 2003 and Revenue requirements. The Regulations are under the remit of the Minister for Social Protection and prescribe the conditions for transfers to arrangements established outside the State.
I am informed by the Revenue that many transfers of pension benefits overseas are made for legitimate reasons and are fully compliant with the transfer Regulations and Revenue requirements. The issue of seeking to recoup the tax relief provided to such individuals in building up their pension benefits here does not, therefore, arise.
Since 2012, all overseas pension transfer requests must be accompanied by a declaration signed by the individual concerned to the effect that the transfer is for bona fide reasons and conforms to all of the relevant transfer obligations.
Since 2014 Revenue has been involved in an ongoing compliance program in relation to the transfer of pension funds off-shore with the objective of seeking to ensure the legitimacy of such transfers. Seeking to move pension funds or PRSAs overseas in an effort to circumvent the requirements of Irish tax legislation may fall foul of the conditions under which they were approved by Revenue and that this could result in the withdrawal of approval, the effect of which would be the claw back of the tax relief previously given.
My Department is engaged in an ongoing review of the area of pension transfers abroad in conjunction with Revenue, the Department of Social Protection and the Pensions Authority with a view to establish potential additional safeguards in this area.
As set out in A Roadmap for Pensions Reform 2018–2023 published last February, the Government is currently reviewing the Pensions system more generally.
138. Deputy Pearse Doherty asked the Minister for Finance the anticipated changes in the volume of tax collected as a result of the modernisation of the PAYE system from 2019 on the basis of no other changes; and if he will make a statement on the matter. [38407/18]
View answerBudget 2018 included provision for an additional €50 million in Income Tax receipts during 2018 arising from preparations for PAYE Modernisation, which is scheduled for implementation on 1 January 2019. I am advised by Revenue that, while it will be necessary to wait until after the year end to fully assess the outcome, preliminary analysis indicates this target will be met.
139. Deputy Peadar Tóibín asked the Minister for Finance his views on whether the current parameters for section 481 are rigid enough to prevent abuse in view of an allegation (details supplied); if an internal investigation into this case is being undertaken; the steps being taken to ensure that such a situation cannot occur; and when the findings of the report into the review of section 481 undertaken by the Revenue Commissioners will be published. [38430/18]
View answerI am advised by Revenue that they cannot comment on individual cases such as the allegation referred to in the Deputy’s question. However, they have provided the following general information in relation to the administration and audit of claims for the film tax credit under Section 481, Taxes Consolidation Act 1997.
Under Section 481, in general terms a company which produces a film can claim a payable tax credit of 32% of the lower of:
(a) the eligible expenditure incurred on producing a film,
(b) 80% of the total cost of production of the film, or
(c) €70 million per film.
The maximum credit a company can claim in respect of a film is therefore €22.4 million.
Eligible expenditure is the amount that the producer company spends in Ireland, wholly and exclusively on producing the film. Amounts spent on the film outside of Ireland do not qualify for the tax credit. However, where the credit is calculated based on 80% of the total cost of production, Revenue must have regard to the amounts incurred outside of the State as an increased global budget can lead to an increased credit.
The company that claims the credit must be an Irish producer company. The Irish work on the film must be carried out by a special purpose company which is wholly owned by that Irish producer company. Where the film is not a fully Irish production, for example where it is a multi-jurisdictional production or a co-production, the Irish producer company will often organise the Irish production on behalf of an international production company. In those cases, it is the international production company who has full knowledge of the global budget and of the make-up of the items in the Irish budget.
Recognising the potential risks presented, the administrative framework of the relief requires that a company’s application for the credit must include:
(a) an auditor’s report detailing the eligible expenditure, the global budget and details of related party transactions, and
(b) a solicitor’s letter detailing that they have reviewed the legal agreements and that 68% of the funding has been lodged to the company’s bank account (a requirement prior to Revenue releasing any amounts of the payable tax credit).
The payable credit is available to a film that has been approved by the Minister for Culture, Heritage and the Gaeltacht and which has been certified by Revenue. Section 481 provides that Revenue may refuse to certify a film if they have reason to believe that the budget, or any part of the budget, is inflated. They may also refuse to certify the film if they are not satisfied with the commercial rationale for the corporate structure used for financing, distribution and other similar activities. As with all tax reliefs, the greatest risk of inflation is found in related party transactions including through corporate or financing structures that facilitate circular flows of cash.
I am further advised by Revenue that the time taken to process applications for relief under Section 481 has increased in the last year, largely due to increased scrutiny on the expenses included within the “eligible spend” in 481 applications. As the relief was restructured in 2015 from an investor-based relief to a corporation tax credit, the first films which have been made under this new format relief were being completed in 2017, which is when Revenue were first able to review the actual spend on completed films and the amounts being included in the claims for relief, as signed off by the auditors. The largest adjustments arising from this review process are in respect of inflated related party expenditures, and discussions are ongoing between my Department, Revenue and the Department of Culture, Heritage and the Gaeltacht in relation to options to protect the Exchequer and give greater clarity to producers claiming the credit.
The review of the film relief currently under way in my Department is a cost benefit analysis, due under the Tax Expenditure Review Guidelines. The analysis is currently being finalised and is scheduled to be published on Budget day.
140. Deputy Catherine Murphy asked the Minister for Finance the number of new and previously unused properties purchased from builders and developers between 1 January 2013 and to date in 2018, that are exempt from local property tax, LPT; the amount of LPT foregone in respect of these dwellings; and if he will make a statement on the matter. [38460/18]
View answer141. Deputy Catherine Murphy asked the Minister for Finance the number of properties that were self-built before and after 1 May 2013 and to date that are exempt from local property tax; the amount of tax foregone on these dwellings; and if he will make a statement on the matter. [38461/18]
View answer142. Deputy Catherine Murphy asked the Minister for Finance the number of properties that were self-built between 1 January and 1 May 2013 that are exempt from local property tax until the end of 2019, that are used as sole or main residences; the amount of LPT foregone on these types of dwellings; and if he will make a statement on the matter. [38462/18]
View answer143. Deputy Catherine Murphy asked the Minister for Finance the number of properties purchased in 2013 that are classified as main residences that are exempt from local property tax until the end of 2019; the amount of LPT foregone on these properties from 2013 to date in 2018; and if he will make a statement on the matter. [38463/18]
View answerI propose to take Questions Nos. 140 to 143, inclusive, together.
The Finance (Local Property Tax) Act 2012 (as amended) and Part 2 of the Act make provision for a number of LPT exemptions. The available exemptions include new and unused properties purchased from a builder or developer between 1 January 2013 and 31 October 2019 and properties purchased or built between 1 January 2013 and 31 December 2013. The exemptions apply to properties used as principal private residences.
I am advised by Revenue that the approximate number and value of claims to exemption under these categories, for years 2013 to 2018 inclusive, is as follows:
- New and unused purchases: 5,200 properties with total liability amounting to €10 million*;
- Properties purchased or built as main residences during 2013: 11,700 properties with total liability amounting to €25 million.
* Includes properties only where the liable person filed a return claiming the exemption. Where new and previously unused properties were purchased during the current valuation period (2013-2019) there is no obligation to file an LPT return as they are not liable to the tax until the next valuation period. Revenue does however capture data relating to new and previously unused properties on the LPT Register via Stamp Duty records and through various other information sources but they are not included here as they are considered not liable for 2013-2019.
As regards the number and value of self-built properties, Revenue does not collect such information as it is not relevant for LPT purposes.
The number of properties exempt from LPT up to Quarter 2 of 2018 by exemption category is available in the LPT statistics page on the Revenue website at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/quarterly-reports-2018/local-property-tax-june-2018.aspx
