Written Answers Nos. 46-67
46. Deputy Pat Casey asked the Minister for Finance the steps he has taken to investigate reported breaches of the tax benefits enjoyed by the film industry here; and if he will make a statement on the matter. [41557/18]
View answerI am advised by Revenue that they cannot comment on individual cases. However, they have provided the following general information in relation to the administration and review 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 currently claim in respect of a film is therefore €22.4 million.
A further time-limited regional uplift, which I announced in Budget 2019, will allow in certain circumstances for up to an extra 5% credit, the details of which will be published in the Finance Bill.
The credit is payable in two instalments. The first instalment of 90% of the credit is payable before the film is produced, based on the production budget. The final instalment is due when the film has been completed and is based on the actual amounts spent.
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.
By way of background, it is important to understand exactly what companies can claim the film tax 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 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 in its current form was introduced in 2015, 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 upon 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.
47. Deputy Pearse Doherty asked the Minister for Finance if changes will be introduced to bring clarity and consistency to the VAT rating of health food supplements; and if he will make a statement on the matter. [41553/18]
View answer51. Deputy Robert Troy asked the Minister for Finance if he will introduce a reduced VAT rate on food supplements as part of budget 2019; and if he will make a statement on the matter. [41642/18]
View answerI propose to take Questions Nos. 47 and 51 together.
Issues of clarity and consistency relating to the VAT rating of health food supplements arise from the fact that a small selection of food supplements have historically been applied at the zero rate of VAT by concession of the Revenue Commissioners since the introduction of VAT in 1972. The majority of food supplements, however, are charged at the 23% standard VAT rate.
The expansion and diversification of the food supplement market since 1972 has led to a significant growth in the number and variety of food supplement products which do not qualify for the Revenue concession. However, there remains uncertainty as to which food supplements qualify for the zero rate or not. Revenue has received a large volume of requests for confirmation of the VAT treatment on a broad range of food supplements in recent years, leading to compliance concerns and calls for fiscal neutrality.
Revenue have engaged with industry representatives on the matter and one solution would be to legislate to apply a reduced VAT rate to all food supplements, as it is not legally possible to extend the scope of the zero rate to all food supplements. However, this solution would mean that some food supplements would increase from the zero to the reduced VAT rate. Before agreeing to any legislative change in this area, all consequences must be fully considered.
48. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding seized clothing; and if he will make a statement on the matter. [41584/18]
View answerRevenue plays a vital role in support of legitimate business and in the protection of consumers through its role in ensuring that Intellectual Property Rights are preserved and supported.
I am advised by Revenue for those reasons the seizure of a wide range of counterfeit goods, including clothing, arises. Fake copies of well-known brands infringe on the Intellectual Property Rights (IPR) of legitimate businesses and the expectations and potentially the safety of consumers.
For these reasons, it would not be appropriate that such seized products be donated to charities and instead they are securely destroyed.
49. Deputy John McGuinness asked the Minister for Finance if he is satisfied that there is sufficient staff at Irish ports and airports to monitor single parcel consignments entering the country, particularly from non-EU countries; if he has quantified the effect of illegal imports on the market; and if he will make a statement on the matter. [41593/18]
View answerI am advised by Revenue that importations of single parcel consignments from non-EU countries through Irish ports and airports are generally carried out either by express couriers or through the postal system. In the case of express couriers, they make import declarations and pay duty and VAT, where payable, to Revenue. In respect of imports via the postal system, the parcels are presented by An Post to Revenue at the postal depots who then assess the parcels for duty and VAT. An Post pay the amounts assessed to Revenue and recoup this amount from the importer at the time of delivery of the parcels.
While it is not possible to quantify the overall effect of illegal imports on the market, Revenue carries out risk analysis on importations to identify and monitor the movement of imports using EU standard risk criteria.
I am advised by Revenue that it regularly reviews how resources are allocated to various functions having regard to risk and that it considers that it currently has adequate resources to monitor single parcel consignments entering the country. I am assured by Revenue that it will continue to monitor parcel traffic and will respond appropriately to any change in compliance risks identified.
50. Deputy Eoin Ó Broin asked the Minister for Finance the cost in tax forgone from mortgage interest relief on rental income for each year since the relief was introduced. [41602/18]
View answerI am advised by Revenue that due to the way in which a taxpayer's tax liability is determined, i.e., on all sources of incomes as a whole, it is not possible to provide exact figures in relation to the tax foregone as a result of the provision of mortgage interest relief on rental income.
However, using the total amount of interest declared on Income Tax returns, for both residential and commercial properties combined in cases where a rental income has been declared and applying an estimated average marginal rate of 30% to the interest, it is possible to estimate a tentative cost for interest relief from 2009.
The following table sets out the estimated cost since 2009, the earliest year this information is available, up to 2016. Information for 2017 will not be available until 2019.
|
Tax Year |
Estimated Cost €m |
|
2009 |
535 |
|
2010 |
469 |
|
2011 |
488 |
|
2012 |
423 |
|
2013 |
355 |
|
2014 |
312 |
|
2015 |
249 |
|
2016 |
180 |
It should be noted that these figures cover rental income from both commercial and residential properties.
52. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if a sluice gate at a location (details supplied) on the River Maine in County Kerry will be repaired or replaced to prevent flooding; and if he will make a statement on the matter. [41597/18]
View answerThe Office of Public Works (OPW) is responsible for the maintenance of Arterial Drainage Schemes and catchment drainage schemes designated under the Arterial Drainage Acts of 1945 and 1995.
The Sluice gate referred to by the Deputy forms part of the River Maine Catchment Drainage Scheme for which the OPW has maintenance responsibility. The structure in question is a double sluice which offers drainage outfall to lands located behind an OPW flood defence structure.
The lands being drained by this sluice are extremely low lying and consequently have poor drainage outfall. Staff from the OPW have inspected the sluice and found it to be in proper repair and operating effectively.
53. Deputy Pearse Doherty asked the Minister for Education and Skills the steps he will take to commence discussions on mutual recognition agreements with non-EU countries to allow construction workers qualified abroad to work as a matter of urgency; and if he will make a statement on the matter. [41563/18]
View answerAny person holding a qualification from outside the State can use NARIC, Ireland's qualifications recognition and comparison service operated by Quality and Qualifications Ireland (QQI), to get a statement on how their qualification compares with an Irish qualification.
There is no legal requirement to hold a specific qualification to work in the construction sector, other than in certain professions, regulated crafts (see below) and in activities covered by the Construction Skills Certification Scheme. However, persons with an overseas craft qualification who wish to obtain the Irish qualification for a specific craft can avail of the SOLAS Recognition of Prior Learning facility by registering to the relevant craft and submitting a portfolio of verifiable evidence. In the case of regulated crafts such as, electrical and gas (plumbing), recognition of qualifications obtained outside the State in these crafts would be a matter for the Commission for Regulation of Utilities (CRU).
54. Deputy Niamh Smyth asked the Minister for Education and Skills the status of a project (details supplied); if a date for this meeting will be provided; when this meeting will take place; and if he will make a statement on the matter. [41576/18]
View answerThe meeting to which the Deputy refers took place with the Patron on 8 October 2018. The Patron informed my Department that the long-term accommodation needs of the school are being reviewed and that it will revert to my Department when this process has been completed.
55. Deputy Peter Burke asked the Minister for Education and Skills the status of a building project (details supplied); and if he will make a statement on the matter. [41578/18]
View answerA tender process for a main contractor to deliver the project to which the Deputy refers was recently carried out. A Tender Report is currently being finalised. Once this has been approved by my Department the project can proceed to construction. My Department expects this to happen later this year.
56. Deputy Niamh Smyth asked the Minister for Education and Skills if special needs assistant support will be allocated to a person (details supplied); and if he will make a statement on the matter. [41600/18]
View answerThe National Council for Special Education (NCSE) is responsible for allocating a quantum of Special Needs Assistant (SNA) support for each school annually taking into account the assessed care needs of children qualifying for SNA support enrolled in the school.
The NCSE allocates SNA support to schools in accordance with the criteria set out in Department Circular 0030/2014, which is available on the Department's website at www.education.ie, in order that students who have care needs can access SNA support as and when it is needed.
In considering applications for SNA support for individual pupils, the NCSE take account of the pupils' needs and consider the resources available to the school to identify whether additionality is needed or whether the school might reasonably be expected to meet the needs of the pupils from its current level of resources.
SNAs are not allocated to individual children but to schools as a school based resource.
SNA allocations to all schools can change from year to year as children with care needs leave the school, as new children with care needs enrol in a school and as children develop more independent living skills and their care needs diminish over time.
My Department’s policy is to ensure that every child who is assessed as needing SNA support will receive access to such support.
By the end of this year, there will be a total of 15,000 Special Needs Assistants working in our schools, a 42% increase on 2011.
The NCSE Appeals Process may be invoked by a parent or a school where it is considered that a child was not granted access to SNA support on the grounds that Department policy was not met in accordance with Circular 0030/2014.
Schools may also appeal a decision, where the school considers that the NCSE, in applying Department policy, has not allocated the appropriate level of SNA support to the school to meet the care needs of the children concerned.
Where a school has received its allocation of SNA support for 2018/19, but wishes new enrolments or assessments to be considered, which were not taken into account when the initial allocation was made, they may continue to make applications to the NCSE.
As this question relates to a particular child, I have referred the question to the NCSE for their direct reply.
57. Deputy Niamh Smyth asked the Minister for Education and Skills if an appeal is warranted in the case of a person (details supplied); and if he will make a statement on the matter. [41618/18]
View answerIf an individual applicant considers that s/he has been unjustly refused a student grant or that the rate of grant awarded is not the correct one, s/he may appeal, in the first instance, to SUSI.
Where an individual applicant has had an appeal turned down in writing by SUSI and remains of the view that the scheme has not been interpreted correctly in his/her case, an appeal form outlining the position may be submitted by the applicant to the independent Student Grants Appeals Board within the required timeframe.
Under Section 21(2) of the Student Support Act 2011 an applicant has 30 days, from the date of the Appeals Officer’s decision in the awarding authority, to submit her appeal to the Student Grant Appeals Board (Board). Under Section 21(3) of the Act the Board may extend this period by a further 30 days if it is satisfied that the applicant has given reasonable cause to do so. Please be advised that the Board does not have any discretion to extend the time period beyond that allowed for in the Act.
Students in third-level institutions experiencing exceptional financial need can apply for support under the Student Assistance Fund. This Fund assists students, in a sensitive and compassionate manner, who might otherwise be unable to continue their third level studies due to their financial circumstances. Information on the fund is available through the Access Officer in the third level institution attended. This fund is administered on a confidential, discretionary basis.
58. Deputy Ruth Coppinger asked the Minister for Education and Skills if students in education and training board schools will be in a position to opt out of the National Council for Curriculum and Assessment, NCCA, religious education course following circular 0062/2018; and if he will make a statement on the matter. [41619/18]
View answer59. Deputy Ruth Coppinger asked the Minister for Education and Skills the provisions that will be made for students that opt out of the National Council for Curriculum and Assessment, NCCA, religious education course in education and training board schools; and if he will make a statement on the matter. [41620/18]
View answerI propose to take Questions Nos. 58 and 59 together.
Circular 0062/2018 provides clarification in respect of two key areas. The first key clarification is that where a school intends to provide religious instruction/faith formation, parents must give consent before admission to the class. This means that withdrawal does not arise because the parent has requested a place in the religious instruction class. The other key clarification is that classes following the NCCA Religious Education syllabus in ETB or Community schools cannot have any element of religious instruction or worship involved or forming any part of the class activity. This clear separation of religious instruction from the NCCA Religious Education syllabus has the effect of ensuring that withdrawal does not arise for students studying the NCCA Religious Education syllabus.
This is to ensure that the state’s Religious Education syllabus is not taught with any element of religious instruction or worship and that where religious instruction is provided, attendance is confined to those who request to attend.
This circular has no impact on a parent's right, under section 30 of the Education Act 1998 and the Constitution, to opt out of any subject which is contrary to the conscience of the parent of the student.
60. Deputy Sean Fleming asked the Minister for Education and Skills when transport will be provided for a person (details supplied); and if he will make a statement on the matter. [41621/18]
View answerSchool transport is a significant operation managed by Bus Éireann on behalf of the Department.
In the 2017/18 school year over 117,000 children, including over 12,000 children with special educational needs, were transported in over 4,500 vehicles on a daily basis to primary and post-primary schools throughout the country covering over 100 million kilometres annually at a total cost of almost €190 million in 2017.
A school transport service for the child in question will commence on Monday, 15th October 2018. Bus Éireann has contacted the family to inform them of the transport arrangements.
61. Deputy Niamh Smyth asked the Minister for Education and Skills if he will address a matter regarding the case of a person (details supplied); and if he will make a statement on the matter. [41622/18]
View answerThe case to which the Deputy refers has been brought to the attention of SUSI by my officials.
I understand that SUSI has reviewed this case and a revised decision will issue to the student in the coming days.
62. Deputy Brendan Smith asked the Minister for Education and Skills if further consideration will be given to an application for additional permanent accommodation at a school (details supplied) in view of classrooms being overcrowded and a projected growth in enrolment; if this application will be progressed without further delay; and if he will make a statement on the matter. [41652/18]
View answerI wish to advise the deputy that my Department has no record of receiving a recent application for additional accommodation from the school referred to.
The school applied for additional accommodation in 2017 and my Department advised the school, at that time, that priority was being given to applications from schools where an additional teacher was being appointed, that it was not possible to provide a grant to the school in question as the school’s enrolment did not warrant the appointment of an additional teacher.
63. Deputy Billy Kelleher asked the Minister for Education and Skills the estimated full-year cost of ending apprenticeship fees; and if he will provide an overview of the annual bursary that apprentices may receive. [41688/18]
View answerAn Annual Student Contribution is levied on all students attending Institutes of Technology (IoTs). Previously, this Annual Student Contribution was paid by FÁS/SOLAS with apprentices themselves paying the part of the contribution relating to examination fees. As part of Budget 2014, SOLAS ceased making payments to IoTs and apprentices pay the full pro rata Annual Student Contribution.
The amount charged to apprentices is calculated on a pro rata basis of the time which they spend in IoTs during the academic year. For craft apprenticeships, this cost would typically be one third of the €3,000 Annual Student Contribution paid by students attending for the full academic year and so amounts to approximately €1,000 per apprentice per period spent in the IoT.
The cost of not charging the Annual Student Contribution is estimated to be €4.2 million in 2018, although there are no plans to abolish the Annual Student Contribution for apprentices.
SOLAS offers a bursary of €2,666.44 to eligible employers, rather than the apprentices themselves, to encourage them to employ female apprentices in one of the craft apprenticeships. The bursary applies by the relevant Education and Training Board at a rate of €95.23 per week for 28 weeks as a contribution towards the apprentice's salary and other costs. It is paid in two instalments, the first on completion of phase 1 of an apprenticeship and the second during phase 3 when the apprentice completes the balance of the 28 applicable weeks with their employer.
64. Deputy Bernard J. Durkan asked the Minister for Education and Skills if an appeal can be facilitated in respect of the refusal of a higher education grant in the case of a person (details supplied) who has been assessed as benefiting from their parents' income, who is not supported by their parents and who lives in another jurisdiction; and if he will make a statement on the matter. [41709/18]
View answerFor student grant purposes, students are categorised according to their circumstances either as an independent student or a dependent student.
An applicant’s class is defined at his/her first point of entry or re-entry to an approved course and will continue for the duration of his/her studies.
In order to be classified as an independent applicant a student must:
- Be over 23 years of age on the first of January of the year in which s/he enters or re-enters an approved PLC or higher education course, and
- Not ordinarily reside with his/her parent(s) from October of the year before the first point of entry or re-entry to an approved higher education course.
If an individual applicant considers that s/he has been unjustly refused a student grant or that the rate of grant awarded is not the correct one, s/he may appeal, in the first instance, to SUSI.
Where an individual applicant has had an appeal turned down in writing by SUSI and remains of the view that the scheme has not been interpreted correctly in his/her case, an appeal form outlining the position may be submitted by the applicant to the independent Student Grants Appeals Board within the required timeframe.
65. Deputy Bernard J. Durkan asked the Minister for Education and Skills the status in respect of an application for a higher education grant for study in the case of a person (details supplied); and if he will make a statement on the matter. [41711/18]
View answerAs part of a comprehensive customer service and communications strategy provided by Student Universal Support Ireland (SUSI), to ensure that all necessary avenues are open to applicants to receive the information they need, a dedicated email and phone line service is provided by SUSI for Oireachtas members. This was established to meet an identified need for applicants who choose to engage the assistance of their public representatives in making enquiries about their grant applications.
This service complements the established channels provided by SUSI which include online application tracking, a dedicated website, a telephone helpdesk, email and social media, including Facebook and Twitter.
Enquiries may be emailed directly to SUSI at oireachtas@susi.ie. Staff in SUSI are responding to email queries within a matter of days.
66. Deputy Brendan Smith asked the Minister for Education and Skills further to a Topical Issue debate and previous parliamentary questions, if an application by a school (details supplied) will be approved without further delay; and if he will make a statement on the matter. [41736/18]
View answerI wish to inform the Deputy that schools are not required to make an application for inclusion in the DEIS programme, as all schools both Primary and Post Primary are assessed using a new uniform identification model.
As previously referenced in the Topical Issue Debate, the DEIS identification process uses data from a number of sources to improve accuracy regarding the socio-demographic profile of schools resulting from the new identification model. This will have an impact not only on the assessment of schools for inclusion in the programme but also on the scaling of resources to allow for more graduated levels of support. This in turn allows for the ultimate objective of allocating resources to best meet the identified need of individual schools.
In order to achieve this, the current identification model needs to be as accurate as possible and this will be facilitated by the use of Eircode to ensure correct inputting of addresses. Further analysis is also required to examine other variables known to be strong predictors of educational disadvantage in the context of resource allocation.
In order to ensure the quality of the address data and conduct further analysis, it has been decided to conduct further quality assurance on the model before extending these envisaged uses of the model. Therefore, it is not intended to extend the DEIS programme to any further schools until this work is complete.
67. Deputy Catherine Murphy asked the Minister for Justice and Equality if consideration has been given to the fact that funding for the pilot phase of the employer disability information service is due to end on 31 December 2018; his plans to extend funding for this service beyond 2018; and if he will make a statement on the matter. [41587/18]
View answerThe Comprehensive Employment Strategy for Persons with Disabilities is a ten year strategy to improve employment opportunities and work participation levels for persons with disabilities. Included in the Strategy's six key priorities is a commitment to engaging employers to support the achievement of this goal.
Following the publication of the Strategy in 2015, responsibility for implementing "Strategic Priority 6 - Engage Employers" was assigned to the National Disability Authority (NDA). The NDA developed a three year pilot project which included the following actions:
- Develop a national employer peer support network
- Produce new guidance for employers
- Investigate establishment of an employer helpline.
The Employer Disability Information Service is the mechanism that the NDA established to deliver these actions.
The service comprises:
- A helpline aimed at providing advice and information to employers on employment of people with disabilities;
- A central web-based information resource incorporating guidance and an FAQ section, which is kept up to date
- Using the mainstream channels of the participating organisations to disseminate information on the service and on matters relating to employment of people with disabilities
- Development of networks and fora for employers to share experiences and good practice
The service is managed by a consortium of employer organisations i.e. Chambers Ireland, IBEC and ISME.
The pilot phase of the project is currently in its final year, and a review of the EDI Service is currently underway.
As the Deputy will appreciate, pending the outcome of this review it is not yet possible to indicate the precise plans for the operation of EDI beyond 2018. It is expected that a decision in respect of this will be made in due course.
