Written Answers Nos. 55-79
55. Deputy Willie Penrose asked the Taoiseach and Minister for Defence the status of the review into pay and allowances for members of the Permanent Defence Force; if allowances which were previously paid will be fully restored; and if he will make a statement on the matter. [39279/18]
View answerDefence Forces pay is increasing in accordance with public sector pay agreements. The focus of these increases is weighted in favour of those on lower pay. Members of the Permanent Defence Force have received the pay increases due under the Lansdowne Road Agreement.
In addition in 2017, following negotiations with PDFORRA improved pay scales were implemented for general service recruits and privates, who joined the Permanent Defence Force post 1 January 2013.
The Public Service Stability Agreement 2018-2020 provides for increases in pay ranging from 6.2% to 7.4% over the lifetime of the Agreement. The first increase due from 1 January 2018 has been paid to Permanent Defence Force personnel and a second increase is due to be applied from 1 October 2018. Further increases are scheduled for 2019 and 2020.
By the end of the current Public Service Pay agreement (end 2020), the pay of all public servants (including members of the Defence Forces), earning under €70,000 per annum, will be restored to pre FEMPI levels. The restoration of the 5% reduction to allowances cut under FEMPI is also scheduled in the agreement.
New entrants to the Defence Forces will also benefit from the measures which were recently announced in relation to amendments to the pay scales for new entrant public servants recruited since January 2011.
The Public Service Pay Commission was established to provide objective advice to Government in relation to Public Service remuneration policy. In 2017, under my direction, the Department of Defence brought issues of recruitment and retention in the Defence Forces to the attention of the Public Sector Pay Commission (PSPC). As a direct result of that initiative the PSPC is conducting an in-depth evidence based examination of those issues.
The Department of Defence has provided data as requested by the PSPC for consideration. The Commission's work is on-going. The Department of Defence will continue to engage with the Public Service Pay Commission throughout the process and will give due consideration to the findings and recommendations that arises from the work of the Commission.
56. Deputy Micheál Martin asked the Taoiseach and Minister for Defence when he last met officials from his Department to discuss defence policy. [38844/18]
View answerA range of powers and responsibilities were delegated to me as Minister with Responsibility for Defence by the Defence (Delegation of Ministerial Functions) Order 2017, made on 5 July 2017 under s. 2(1) of the Ministers and Secretaries (Amendment) (No. 2) Act 1977. In that role, I am in daily contact with my officials as part of the on-going business of the Department including defence policy matters. The Taoiseach is briefed as required on defence issues.
57. Deputy Jack Chambers asked the Taoiseach and Minister for Defence further to Parliamentary Question No. 14 of 7 September 2018 (details supplied), if minutes of these meetings were actually taken as distinct from being circulated between the attendees. [39237/18]
View answerI can confirm that a note of the meeting was taken by a Department official. This note is for the purpose of an aide memoire and does not constitute formally agreed minutes of the meeting.
58. Deputy Lisa Chambers asked the Taoiseach and Minister for Defence if additional financial resources have specifically been given to his Department to prepare for the possibility of a no-deal Brexit; if members of the Defence Forces have undergone training in order that they are equipped to deal with a no-deal Brexit; if so, the details of that training; if his Department has undertaken an analysis of the resources, financial, staffing and otherwise, that it will require in the event of a no-deal Brexit; if his Department has a detailed contingency plan in place that is ready to be operationalised in the event of a no-deal Brexit; and if he will make a statement on the matter. [39253/18]
View answerAs the Deputy will be aware, responsibility for the security aspect of border control in Ireland rests with A Garda Síochána, while the Revenue Commissioners also have responsibilities relating to their particular mandate. Among the roles assigned to the Defence Forces in the White Paper on Defence is the provision of aid to the civil power and civil authorities. The Defence Forces at all times keep operational plans under constant review and there will continue to be ongoing close liaison between An Garda Síochána and the Defence Forces regarding security matters, including through regular coordination and liaison meetings.
In respect of the border, the potential implications in this regard will continue to emerge during the course of the negotiations. It is the Government's stated goal to try to ensure that the current on-island border arrangements are maintained to the greatest extent possible. The Brexit negotiations are ongoing and all parties - the EU, Ireland and the UK - agree that there should be no return to a hard border and as such no need for border checkpoint infrastructure or personnel on the land frontier. In this regard, the Irish Government notes Prime Minister May's clear statement on Friday that she will fulfil her commitment of last December for no return to a border between Ireland and Northern Ireland.
Defence Forces training is designed to enable Defence Forces personnel address all potential calls on them arising from changes in the security situation on island within the framework of any roles assigned to them by Government, including aid to the civil power and aid to the civil authorities. Prudent planning in relation to all security situations which may require a Defence Forces response is part and parcel of the day to day operations of the Defence Forces and, as such, is addressed within existing resources.
Should a situation arise beyond the contingent requirement for Defence Forces deployment already provided for in the Defence vote, this will be addressed in the normal course within the budgetary discussions on defence funding.
59. Deputy Seán Crowe asked the Tánaiste and Minister for Foreign Affairs and Trade if his attention has been drawn to the arrest and imprisonment of a political activist (details supplied) in India; and if he will he urge the Indian authorities to release the person and review the case against them. [39152/18]
View answerI am aware of the case of Mr Thirumurugan Gandhi, and of his arrest in August. The promotion and protection of human rights is an integral part of Ireland’s foreign policy. Ireland works closely with Human Rights Defenders to protect the work they do and to promote the value of civil society space. Article 19 of the Universal Declaration on Human Rights sets out that every person has the right to freedom of opinion and expression. This means that people are free to hold opinions without interference and may share these opinions through the media without fear of reprisal. In light of Mr Thirumurugan Gandhi’s arrest, I have requested that the Irish Embassy in New Delhi raise this case with the EU Office in New Delhi. In general, it is more effective if we raise concerns through the EU rather than bilaterally. I can assure the Deputy that Embassy New Delhi will continue to take an interest in the case and that I have requested to be kept informed of developments.
60. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the number of staff employed in the press office of his Department, both at official and non-official level; and if he will make a statement on the matter. [39164/18]
View answerThere are six staff in the Press Section of the Communications Unit in my Department. There are a further four officers engaged in the area of public outreach and five officers covering web and digital issues. Two additional officers in the Unit are dedicated to Brexit and European Union-related communications. These staff are overseen by a Head and a Deputy Head of Communications. There are also press officers posted to diplomatic missions in London, Brussels and Washington D.C. Two Special Advisors in my Department, along with other duties, advise on media matters.
61. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the number of public relations companies that have been recruited by his Department in 2018; the areas and campaigns in which they have given advice; and if he will make a statement on the matter. [39165/18]
View answerMy Department has not recruited any public relations companies in 2018, nor incurred expenditure on external public relations. While my Department has from time to time commissioned companies with a public relations and communications background, this has been done with a view to the provision of other professional services such as project management, logistics and event management, including in relation to Irish Aid public outreach activities.
62. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the campaigns he is undertaking to inform persons on Brexit; the format these will take; if he has sought external advice on same; and if he will make a statement on the matter. [39166/18]
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. Our revamped Brexit website, www.dfa.ie/brexit is a key source of information on Brexit preparedness for citizens and businesses, as are the websites of other relevant Government Departments and agencies. 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 agrifood 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.
63. Deputy Róisín Shortall asked the Tánaiste and Minister for Foreign Affairs and Trade if Ireland will be supporting the UN Security Council referring Burma to the International Criminal Court (details supplied); and if he will make a statement on the matter. [39171/18]
View answerIreland is not currently a member of the UN Security Council, and is therefore not in a position to formally offer support on the question of referring Myanmar to the International Criminal Court. However, as the Deputy notes, the findings of the Independent International Fact-Finding Mission on Myanmar (IIFFM) make for harrowing reading. The report corroborates many of the eyewitness accounts which have emerged from Myanmar in recent times. It provides credible findings that human rights violations amounting to crimes against humanity and war crimes have been committed by members of the Burmese Military (Tatmadaw) and other security forces in Rakhine, Kachin and Shan States. These crimes include the widespread killing of civilians; rape and sexual violence; torture and enforced disappearances. The IIFFM’s report also finds that there is sufficient evidence of the crimes committed in Rakhine State being so grave that they warrant a competent court to determine the liability for the crime of genocide of those in the Tatmadaw chain of command.
Having considered this evidence, Ireland would support the referral by the Security Council of the situation in Myanmar to the ICC. The Security Council is the only competent body that can take this step.
However, given the political and legal difficulties that surround such a referral, our focus in ensuring accountability and investigation of the allegations is necessarily elsewhere. We are working closely with international partners in other fora including the UN Human Rights Council and the EU to ensure that measures are put in place to allow the investigation of human rights violations and that those who have perpetrated these crimes are held to account.
In particular, at the current session of the Human Rights Council, Ireland is working in Geneva with the EU and other international in support of a resolution which seeks to establish an effective accountability mechanism to hold responsible those who have committed human rights violations.
64. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on his meeting with the Palestinian President, Mahmoud Abbas; his views on the recognition of the state of Palestine; and if he will make a statement on the matter. [39231/18]
View answerWhen I visited Ramallah last January, I extended an invitation to President Abbas to visit Ireland again, ten years after his last visit. I was delighted that he took up this invitation last weekend, and was pleased to be able to welcome him to Ireland.
The Taoiseach and I had a substantive and useful meeting with President Abbas at Farmleigh on 22 September, following on from his meeting with President Higgins earlier in the day. I also hosted a working dinner for President Abbas and his delegation that evening. The presence of a large delegation accompanying him to the UN General Assembly in New York meant that the meetings also benefitted from the presence of other senior Palestinian leaders, including Saeb Erekat, Chief Negotiator and Secretary General of the PLO; Deputy Prime Minister Dr. Ziad Abu-Amr; Foreign Minister Riad Malki; and others. This contributed to a very full and useful discussion.
The topics we covered included the current situation in Palestine, and issues arising from the occupation, including settlements; the situation in Gaza; the funding crisis facing UNRWA; the international environment and prospects for any political initiative; human rights issues in Palestine, especially in Gaza; and the forthcoming United Nations Ministerial sessions and related meetings.
President Abbas and his colleagues expressed their strong hope that Ireland would soon recognise the State of Palestine. I explained the Government’s position, our consistent support for the achievement of a fully sovereign Palestinian state, and my continuing assessment of whether and when formal recognition by Ireland could be most helpful. I made clear in my public remarks with Minister Malki that the growing general concern about the evolution of the situation on the ground – which the Government fully shares – was itself also a relevant factor in that assessment.
I also discussed with the Palestinian delegation the idea of Ireland hosting an informal meeting of a small number of Arab and European Ministers with Palestinian representatives, to reflect privately on how to advance the cause of peace. We are working to develop this concept, in consultation with partners, over the coming weeks.
In terms of practical assistance which Ireland can offer to the Palestinian people, I announced an additional €1 million in Irish Aid funding for UNRWA, bringing Ireland’s total funding to UNRWA to €7 million this year, the highest it has ever been. I underlined the Government’s strong support for the Agency and the essential work it is carrying out under difficult conditions.
65. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has had recent discussions with the Secretary of State for Northern Ireland and with the political parties on the need to have the Stormont Assembly and Executive restored without further delay; and if he will make a statement on the matter. [39281/18]
View answerI am engaging closely and on an ongoing basis with the Secretary of State for Northern Ireland, Karen Bradley, as both Governments continue to work together as co-guarantors of the Good Friday Agreement, to address the continuing absence of the power-sharing Executive and Assembly in Northern Ireland, as well as the North-South Ministerial Council.
I met with Secretary of State Bradley most recently on 24 August and on 17 September in Dublin and we plan to meet again in Belfast on 8 October. We also remain in regular contact by phone.
I have conveyed to Secretary of State Bradley the Government’s deep concern at the continuing impasse with the devolved institutions, which she shares.
Both Governments are determined to get the devolved institutions up and running again and I am actively engaging with Secretary of State Bradley on how that can now be most effectively advanced.
I am hopeful that in the period ahead it will be possible to commence a political process to get beyond the current impasse and seek an agreement between the parties on operating the devolved institutions again, consistent with the full and effective implementation of the Good Friday Agreement and subsequent Agreements.
I do not underestimate the way to go in achieving that, but I firmly believe that a resolution is possible and that the calls from across all sections of the community in Northern Ireland for the devolved institutions to operate will be heeded.
I will continue to engage intensively, working with Secretary of State Bradley and the leaders of all of the political parties, to seek a way forward that will give the best prospects for getting the devolved institutions operating again as soon as possible.
The devolved, power-sharing institutions are at the heart of the Good Friday Agreement and are the best means for achieving accountable, representative decision-making for all the people of Northern Ireland.
The Good Friday Agreement is the indispensable framework for providing stable, inclusive, power-sharing government for all the people of Northern Ireland and for sustaining our interlocking relationships – within Northern Ireland, on the island of Ireland and between the UK and Ireland.
The Government will continue to do everything in its power, consistent with its responsibilities as a co-guarantor of the Good Friday Agreement, to secure the effective operations of all of the institutions of the Agreement.
66. Deputy Michael McGrath asked the Minister for Finance if banks have the discretion to grant a mortgage to a person without adequate life assurance and-or mortgage protection cover in place; and if he will make a statement on the matter. [39161/18]
View answerThe Central Bank has advised that when an individual(s) applies for a mortgage loan to buy a home, the individual(s) will generally be required to take out mortgage protection insurance. This is a particular type of life assurance taken out for the term of the mortgage and is designed to pay an amount equal to the outstanding principal amount of the mortgage on the death of the borrower or joint borrower.
In most cases, a lender is legally required under section 126 of the Consumer Credit Act 1995 to make sure that a mortgage applicant has a mortgage protection insurance before granting a mortgage loan. However, there are certain exceptions to this requirement which are:
(a) the house in respect of which the loan is made is, in the mortgage lender's opinion, not intended for use as the principal residence of the borrower or of his dependants,
(b) loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally,
(c) loans to persons who are over 50 years of age at the time the loan is approved,
(d) loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, of not less than the estimated outstanding principal amount of the mortgage.
67. Deputy Michael Healy-Rae asked the Minister for Finance the reason the Revenue Commissioners' office in Tralee, County Kerry is closed to the public; and if he will make a statement on the matter. [39196/18]
View answerI am advised by Revenue that it has significantly enhanced its overall customer support infrastructure in recent years to assist taxpayers in managing their tax affairs in an environment that is both efficient and convenient. In particular, the provision of enhanced online and telephone services has resulted in very significantly reduced demand for the traditional ‘walk-in’ services to public offices.
Notwithstanding the introduction of such high-quality on-line facilities, Revenue remains very conscious that these products may not suit everybody, for example the elderly or customers with limited access to broadband, and for that reason has further enhanced its overall service by introducing standardised public office opening hours, a specific ‘Business Taxes’ telephone service as well as an appointments service in a number of public offices, including Tralee.
The appointments service, which is supported by a dedicated telephone number, facilitates taxpayers in meeting with Revenue officials at a time that best suits individual circumstances and for the most part removes the potential for delays or queuing. Revenue has confirmed that this service is fully available in the Tralee office from 9.30am to 4pm each day and appointments can be made by contacting telephone number 066 716 1108. Revenue has also confirmed that the service provides both face to face meetings and access to the various on-line facilities if required.
68. Deputy Róisín Shortall asked the Minister for Finance the tax incentive schemes that exist to encourage employers to take on new employees; and the cost of these in a full year. [39255/18]
View answerThere are a range of tax measures designed directly or indirectly to encourage employers to take on new employees. These include the following:
Key Employee Engagement Programme (KEEP): The policy objective of KEEP is to assist small to medium size businesses in competing with larger companies when attempting to attract and retain key employees. Share options can provide key employees with a financial incentive linked to the success of the company and may improve the attractiveness of an SME employment offer. The incentive provides that the value of the benefit to the employee on exercise of a qualifying share option will be subject to capital gains tax when the employee subsequently disposes of the shares. In the absence of the KEEP incentive, such gains would be subject to income tax, USC and PRSI at the time of exercise.
As this is a new measure, there will be no immediate cost in 2018 as the share options must, with limited exceptions, be held for a minimum of twelve months before they can be exercised under this scheme. It is also likely that employees may hold the KEEP share options for a number of years before exercise, as the options must be granted at not less than market value on the date of grant, so a benefit will only arise to the employee if the shares increase in value from that date. It is estimated that the eventual full-year cost of the Key Employee Engagement Programme will be in the region of €10m.
Key Employee R&D Tax Credit: Separate from KEEP, this key employee provision allows for the transfer of the financial benefit of the R&D tax credit from a company to an individual employee. The key employee measure is designed to assist companies in the State to attract and retain employees with key skills in the field of R&D. Such skills are necessary to allow companies innovate, expand and develop. The generation of new products, processes and innovations should lead to more jobs being created in the economy. The cost of the measure in 2015, the latest year for which data are available, was less than €0.05m.
The Employment and Investment Incentive: The Employment and Investment Incentive (EII) is a tax relief incentive that provides tax relief for investment in certain corporate trades and is targeted at job creation and retention. The scheme replaced the Business Expansion Scheme (BES) which had been in place from 1984. The incentive allows an individual investor to obtain income tax relief on investments, up to a maximum of €150,000 per annum, in each tax year up to 2020. Relief is initially available to an individual up to a maximum of 30% of the amount invested. A further 10% tax relief is available where it has been proven that employment levels have increased at the company at the end of the specified period (3 years) or where evidence is provided that the company used the capital raised for expenditure on research and development. The cost of EII in 2016, the latest year for which data are available, was €32m. A review of the scheme is currently underway.
The Special Assignee Relief Programme (SARP): SARP is aimed at reducing the cost to employers of assigning key individuals already employed by their companies from abroad to take up positions in the Irish based operations of the employer. The intention is that the recipients of SARP will assist with the establishment of additional functions for their companies in Ireland and, due to a transfer of skills, these functions will be able to operate without the assistance of SARP after a period. The existing SARP scheme is limited to existing overseas employees of companies and is not available to new hires. The cost of SARP in 2015, the latest year for which data are available, was €9.5m. This scheme is subject to a sunset clause with an end date of 31 December 2020.
Start Up Relief: Three Year Start Up Relief (Section 486C TCA 1997) provides for relief from corporation tax for start-up companies in their first three years of trading. The relief was introduced to provide support to new business ventures in their critical early years of trading, thereby supporting the creation of additional employment and economic activity in the State. The relief is granted by reducing the corporation tax payable on the profits of the new trade and gains on the disposal of any assets used for the purpose of the new trade. The relief exclusively supports start-up companies that create and maintain jobs, by restricting the relief available to a company by reference to its Employers’ PRSI payments. The cost of the measure in 2016, the latest year for which data are available, is provisionally set at €5.7m.
Film Relief: Section 481 of the TCA 1997 requires that a producer company that receives the relief employs a certain amount of trainees on the production for which the relief is received. The number of trainees is directly linked to the amount of corporation tax relief claimed. A production must have two trainees for every €335,000 of relief claimed, this is capped at a maximum of eight trainees per production. There isn’t a specific costing for the trainee element of Film Relief as this measure is a requirement for obtaining the relief.
69. Deputy Brendan Smith asked the Minister for Finance if consideration will be given to the request of an organisation (details supplied) on the rate of VAT applicable to a sector in view of its importance to the economy and particularly rural Ireland; and if he will make a statement on the matter. [39261/18]
View answer77. Deputy Brendan Smith asked the Minister for Finance if consideration will be given to the requests of representative organisations (details supplied) on the rate of VAT applicable to a sector; and if he will make a statement on the matter. [39317/18]
View answerI propose to take Questions Nos. 69 and 77 together.
As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
70. Deputy Barry Cowen asked the Minister for Finance the location the proceeds from the sale of Bord Gáis currently lie in view of the fact that €10 million is allocated per year for a pilot scheme on social housing; the rate of return these proceeds are earning; and if he will make a statement on the matter. [39276/18]
View answerThere is an obligation under Article 11 of the Constitution to pay moneys due to the State in to the Central Fund unless there is a law stating that they can be paid somewhere else.
The special dividends related to the sale of Bord Gáis can be divided into two categories:
(i) As the Deputy will be aware from a number of previous PQ responses to him on this issue, the €648 million in net proceeds from the sale of Bord Gáis is being paid by way of special dividends from Ervia to the Exchequer, based on a payment schedule agreed with Government in order to maximise the potential to use the funds in a manner which is efficient from the point of our general government balance.
(ii) Payment of additional special dividends by Ervia to the Exchequer of €330 million over time, where the debt originally associated with the Bord Gáis Energy business that was repaid from the sale proceeds is effectively replaced over time. These payments, which commenced in 2017, are expected to continue for around 20 years and are being utilised by Government to support additional activity in its housing programmes. Such housing programmes are a matter for the Minister for Housing, Planning and Local Government.
The annual rate of return on the amounts that have been transferred to the Exchequer to date would be equivalent to the cost of issuing debt instead of utilising these funds for expenditure on public services. This cost has been approximately 1% per annum for recent debt issuances. The annual rate of return for the funds that remain to be paid by Ervia would be the return earned by Ervia.
71. Deputy Eamon Ryan asked the Minister for Finance the estimated cost of reducing to 0% the current 23% VAT on digital school books; and if he will make a statement on the matter. [39288/18]
View answer74. Deputy Eamon Ryan asked the Minister for Finance the estimated cost of reducing VAT on condoms to 0%. [39313/18]
View answer75. Deputy Eamon Ryan asked the Minister for Finance the estimated cost of reducing VAT on all menstrual products from 23% to 0% and 13.5%, respectively, including but not limited to such products as menstrual cups, disc and reusable menstrual underwear; and if he will make a statement on the matter. [39314/18]
View answerI propose to take Questions Nos. 71, 74 and 75 together.
I am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive the standard rate of VAT, currently 23%, applies to the supply of digital school books.
The VAT Directive also provides that Member States may apply either one or two reduced rates to certain goods and services listed in Annex III of the Directive, including the supply of products used for contraception and sanitary protection. Under Irish legislation the supply of condoms is subject to the reduced rate of VAT, currently 13.5% and the supply of menstrual products, excluding sanitary towels and tampons, is subject to the standard rate of VAT, 23%.
In addition, the Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of the zero rate of VAT on certain goods such as sanitary towels and sanitary tampons, but is prohibited from extending or applying this rate to other goods.
I am further advised by the Revenue Commissioners that traders are not required to separately identify the VAT yield generated from a particular product type or activity on their VAT returns. Therefore, it is not possible to provide an estimated cost of reducing the VAT rates on the specific products referred to by the Deputy.
72. Deputy Brendan Smith asked the Minister for Finance if his attention has been drawn to the widespread illegal importation of smoky coal from Northern Ireland and its adverse impact on legitimate businesses here; the measures he plans to implement to deal with this illicit trade; and if he will make a statement on the matter. [39302/18]
View answerAs I, and my predecessor, have pointed out before, the collection of solid fuel carbon tax is heavily reliant on the regulatory regime covering the marketing, sale, distribution and burning of solid fuels in the State. This regulatory regime is operated by the Department of Communications, Climate Action and Environment and is enforced by local authorities. This regime, which imposes higher environmental standards on coal in the State than applies in Northern Ireland, enables local authorities to undertake enforcement action to prevent the sale or distribution of coal that does not meet our standards.
European Union Single Market constraints preclude the use of any cross-border movement controls in the administration of Solid Fuel Carbon Tax. Therefore, Revenue has no authority to stop vehicles and physically inspect loads of such fuel. Similarly, the transport or possession of solid fuel that originated in Northern Ireland are not, in themselves, Revenue offences and Revenue’s officers have no authority to challenge such transportation or possession. It is important to note that liability to Solid Fuel Carbon Tax does not arise on the physical presence of the goods in the State, but on first supply in the State by the supplier who is obliged to register with Revenue, make a return and pay the tax. This return must be made one month after the two-month accounting period provided for in law.
I am advised that Revenue is in contact with the Department of Communications, Climate Action and Environment to discuss the effectiveness of the regulatory regime for solid fuel and to explore how to improve matters in light of continuing concerns that fuel sourced from Northern Ireland is getting onto the market here, including the scope for cooperation to ensure improved compliance in the sector.
73. Deputy Eamon Ryan asked the Minister for Finance the estimated cost of increasing the earned income tax credit from its 2018 level of €1,150 to €1,650 to match the PAYE credit; and if he will make a statement on the matter. [39305/18]
View answerThe estimated cost of increasing the Earned Income Tax Credit from €1,150 to €1,650 to match the PAYE Credit can be found on page 6 of the Revenue Pre-Budget 2019 Ready Reckoner, available at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf .
The estimated first year cost is €68 million and the full year cost is €121 million.
76. Deputy Eamon Ryan asked the Minister for Finance the likely revenue that would accrue to the State on the closure of existing tax breaks for real estate investment funds including section 110 special purpose vehicle exemptions related to foreign housing and rental investors, exemptions from capital gains tax, DIRT and corporation tax; and if he will make a statement on the matter. [39316/18]
View answerA number of legislative changes have been made in recent years to ensure that income and gains arising to real estate investment funds active in the Irish property market are subject to tax.
For example, Finance Act 2016 made certain changes to the taxation of companies set up under section 110 companies of the Taxes Consolidation Act 1997 (TCA), which is designed to create a tax neutral regime for bona-fide securitisation and structured finance purposes. Section 110 companies can only hold certain qualifying assets. Real property is not an asset that these companies can hold, however they can hold loans and other financial assets that derive their value therefrom. The Finance Act 2016 changes related to the taxation of profits which were derived from Irish land and buildings and provided a restriction on the amount of interest which is deductible against such profits, thereby excluding businesses with loans which are secured over, or derive their value from, an interest in Irish land from using the provisions of section 110 to avoid payment of Irish tax on profits made on Irish property transactions. Those changes took effect from 6 September 2016.
The Deputy will also be aware of the REIT regime introduced in Finance Act 2013 and the IREF regime introduced in Finance Act 2016. Both regimes, which apply to collective investment vehicles, in general terms provide that profits arising from Irish rental property are taxed at the investor level rather than at the investment vehicle level. That is, the vehicle is not subject to corporation tax or capital gains tax because the income and/or gains are taxed at the level of the investor when they receive a payment from that vehicle. Under both regimes a 20% withholding tax applies on dividends paid out of Irish property profits or gains to non-resident investors.
There are a number of exceptions from the operation of the IREF and REIT withholding tax such as for pension schemes and charities as they are more generally exempt from tax.
DIRT does not apply to deposits held by companies who have supplied their tax reference number to a deposit taker. I would note however while DIRT is not collected at source, such companies are subject to tax on the interest income. There is no specific exemption from DIRT for section 110s, REITs or IREFs. The nature of investment vehicles is such that they are unlikely to hold significant deposits for any period of time.
I am advised by Revenue that it is not possible to calculate the amount of tax that would be paid if:
- a company had not submitted a notification to Revenue that it is a qualifying company for the purposes of section 110 TCA 1997,
- the REIT regime was not in existence, or
- the IREF regime was not in existence.
Any such calculation would require a wide range of assumptions as to what activity would have taken place in the absence of these regimes.
78. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if the relevant information in respect of the professional added years schemes pertaining to staff who joined the Civil Service prior to 1993, prior to 1997 and new entrants from 2011 will be provided; if the same information pertaining to staff that joined non-commercial semi-State bodies (details supplied) prior to 1993, prior to 1997, prior to 2005 and new entrants from 2011 will be provided; and if he will make a statement on the matter. [39138/18]
View answerProfessional added year's schemes, in both the Civil Service and State-Sponsored Bodies, apply to pensionable employees appointed to a professional, technical or specialist post where the essential requirements specified in the competition (e.g. qualifications / experience / minimum entry age) result in all candidates from the competition being over the age of 25 on appointment.
1. Professional added years schemes which operate in the Civil Service
|
Relevant dates |
Relevant scheme for assessment of award |
Circular |
|
Retired before 1 January 1993 |
- Old Scheme |
Circular 11 of 1985: Ad hoc arbitration finding on a claim for the award of added years to certain civil service grades |
|
Serving at any time between 1 January 1993 and 31 March 1997 |
Staff have a choice between: - Revised Old Scheme - New Scheme |
Circular 12 of 1997: Revised schemes for the award of professional, technical and specialist added years to certain civil servants |
|
Appointed on or after 1 April 1997 |
- New Scheme |
Circular 12 of 1997: Revised schemes for the award of professional, technical and specialist added years to certain civil servants |
|
Appointed as a new entrant by competition advertised on or after 1 April 2005 |
- New Entrant Scheme |
Circular 8 of 2005: Public Service Pension Reform: New Scheme for the award of professional, technical and specialist added years to certain entrant staff of the Civil and Public Service |
|
Appointed as a Single Scheme member on or after 1 January 2013 |
- N/A* |
- N/A |
* Please note members of the Single Public Service Pension Scheme are not entitled to professional added years.
1. Professional added years schemes which operate in State- Sponsored Bodies
|
Relevant dates |
Relevant scheme for assessment of award |
Circular / Letter to Depts. |
|
Serving on 1 July 1987 |
- Original scheme |
Letter to Departments 9 May 1988: Scheme for the grant of “professional added years” for superannuation purposes to staff of State-Sponsored bodies |
|
Serving at any time between 1 April 1997 and 31 December 2004. |
Staff have a choice between:- Original scheme- Revised scheme |
Letter to Departments 19 November 2004: Revised scheme for the award of professional, technical and specialist added years to certain staff of State-Sponsored Bodies |
|
Appointed as a new entrant by competition advertised on or after 1 April 2005 |
- New Entrant Scheme |
Circular 8 of 2005: Public Service Pension Reform: New Scheme for the award of professional, technical and specialist added years to certain entrant staff of the Civil and Public Service |
|
Appointed as a Single Scheme member on or after 1 January 2013 |
- N/A* |
N/A |
*Please note members of the Single Public Service Pension Scheme are not entitled to professional added years.
79. Deputy Eamon Ryan asked the Minister for Public Expenditure and Reform the estimated cost of increasing the minimum public sector wage to €11.90 per hour. [39315/18]
View answerThe detailed costings sought in this request would require detailed data on the position of staff on each salary scale across the public service and details of the standard working hours per week for each individual grade. This data is not available to the Department.
Pay band data available to the Department indicates that some 96% of all public service staff are on salary points in excess of €25,000 per annum. The suggested wage at €11.90 per hour based on the Civil Service 37 hour standard net working week equates to an annual salary of €22,975.
Data based on Civil Service staff only at the end of June 2018 indicates that only some 1% of staff (FTE) in the Civil Service are on salary points less than €22,975. The estimated cost within the civil service, which is some 11% of the overall public service, would be some €3.9m (Headcount). Based on the above costing, assuming the same wage profile to the wider Public Service, it is estimated that it would cost €35.4m to introduce a minimum wage across the Civil and Public Service.
However it should be noted that any of those currently on an annual salary of less than €22,975 could be receiving remuneration in excess of the suggested minimum wage through additional premium payments in respect of shift or atypical working hours or are on salary scales that progress to the suggested minimum wage through incremental progression.
Furthermore, the pay increases under the new Public Services Stability Agreement 2018-2020: 1% October 2018; 1% for those earning under €30,000 January 2019; 1.75% in September 2019 and 2% in October 2020 will further reduce those earning less than the rate the Deputy has mentioned.
