Written Answers Nos. 64-83
65. Deputy Michael McGrath asked the Minister for Finance the plans of the Revenue Commissioners to cut flat rate relief for a number of industries; the estimated amount of extra tax that will be received as a result of the changes; the rationale for making this change; the industries impacted by this change; and if he will make a statement on the matter. [48810/18]
View answer66. Deputy Michael McGrath asked the Minister for Finance the number of persons claiming flat rate relief by industry; the cost of this relief being claimed in each case in tabular form; and if he will make a statement on the matter. [48811/18]
View answerI propose to take Questions Nos. 65 and 66 together.
I propose to take these two questions together as they relate to the flat rate expense regime operated by Revenue. I am aware that there have been some recent updates to Revenue’s concessionary flat rate expenses regime.
In the first instance, it is important to note that there has been no change to the general rule set out in legislation that says that all employees are entitled to claim a deduction under section 114 of the Taxes Consolidation Act (TCA) 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent which the expenses are not reimbursed by the employer.
Revenue are independent in the administration of the tax code and the flat rate expenses regime is an additional concessionary practice operated by Revenue where both specific commonality of expenditure exists across an employment category and the statutory requirement for the tax deduction as set out in section 114 TCA 1997 is satisfied.
The purpose of the regime is to simplify administration where the specific legislative criteria is met to help both the taxpayer and Revenue, by making it easier for large groups of employees working in the same sector to avail of their entitlement to tax relief in respect of expenses incurred in the performance of their employment duties.
The flat rate expense is agreed following engagement between Revenue and the relevant representative body for the particular group of employees who incur the same expense. This regime developed incrementally over the last 40 to 50 years, and currently incorporates some 53 employment categories covering broadly 134 individual flat rate expenses.
Given the historic nature of some of the flat rate expenses and having regard to changes in employment circumstances, regulations and work practices across employments, Revenue commenced a comprehensive review in 2018 of flat rate expenses. The rationale for the review, which is in line with best practice and good corporate governance, is to ensure the expenses agreed are still justified and appropriate to modern day employments and work practices and are in accordance with the legislative requirement for deduction as set out in section 114 of the TCA.
I am advised by Revenue that a flat rate expense can only be retained where the legislative basis underpinning the deductibility is supported and they have engaged with relevant representative bodies in cases under review. A consequence of the review by Revenue may be an adjustment to the quantum of the flat rate expense (either increased or decreased) or it may be withdrawn where the continuation is no longer justified. I understand that engagement is on-going in relation to some existing and new categories of flat rate expenses, which is likely to either result in an increase to the existing amount or a new category agreed with Revenue.
The flat rate expense categories initially selected by Revenue for review in 2018 were based on a combination of two factors, the quantum in terms of number of claimants and the value. Revenue has advised that they intend to have their review completed by the end of next year. Therefore, in the interest of fairness to all sectors and employees currently benefiting from the regime, Revenue has decided that the effective date for implementation of any changes to particular flat rate expense categories will be deferred until 1 January 2020, prior to which the review of all the flat rate expenses operating in the various employment categories will be completed.
The flat rate expense categories listed in the following table will be withdrawn with effect from 1 January 2020:
|
Flat Rate Expense Category |
Flat Rate Expense Amount |
Number of recipients in 2018 |
Total gross value of Flat Rate Expenses - 2018 |
|
Agricultural Advisers |
€671 |
122 |
€81,862 |
|
Cardiac Technician |
€107/€212 |
881 |
€177,535 |
|
Journalist in employment |
€381/ €153 |
8,134 |
€2,255,910 |
|
Professional valuer in the Valuation Office |
€680 |
42 |
€28,560 |
|
Freelance actors in employment |
€750 |
682 |
€511,500 |
|
Shop Assistant |
€121 |
75,822 |
€9,174,462 |
More generally, I am informed by Revenue that it is estimated that the total number of PAYE workers who benefit from the flat rate expenses regime in 2018 is in the order of 536,000. I am also informed by Revenue that a breakdown of the cost and numbers by reference to each industry in which the flat rate regime currently operates is not readily available. It is not possible for Revenue to accurately quantify the tax saving/cost associated with the withdrawal as it depends on the particular tax circumstances of the individual recipients, for example, the extent of their income subject to tax and whether income is subject to tax at the standard or marginal rate. However, in the context of their ongoing review of the flat rate regime, Revenue has undertaken to provide a sectoral breakdown.
Finally, Revenue has advised that withdrawal of a flat rate expense does not impact on a taxpayer’s statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent to which the expenses are not reimbursed.
67. Deputy Michael McGrath asked the Minister for Finance the number of NAMA loan sales that have been subjected to review by the Comptroller and Auditor General; the names of the loan sales; the amount of proceeds received from each loan sale under review by the Comptroller and Auditor General; and if he will make a statement on the matter. [48812/18]
View answerThe Comptroller and Auditor General is independent in the exercise of his functions and therefore my Department does not have access to the information requested.
The C&AG does report publicly on material findings emerging from his work. Chapter 6 of the C&AG's second progress report on NAMA, published in June 2018, examined the processes applied by NAMA in eleven loan sales, covering the period 2011 to 2016. The C&AG also published a special report on the Sale of Project Eagle which examined the loan sales process for a portfolio of Northern Ireland debtor loans.
68. Deputy Michael McGrath asked the Minister for Finance his views on whether there is a risk of overheating in the economy here over the next number of years; his plans to deal with inflation and the rising cost of living in view of the fact that the European Central Bank controls monetary policy; and if he will make a statement on the matter. [48813/18]
View answerAs I outlined in Budget 2019, our economy is in good shape. Following GDP growth of 7.2 per cent in 2017, GDP is forecast to grow by 7.5 per cent this year. While the GDP figures can be misleading in an Irish context, a broader range of measures including labour market and tax revenue developments confirm the economy is performing strongly.
Despite the rapid rate of growth, the main indicators of an overheating economy – for instance the growth in wages, prices and credit - do not yet suggest that overheating pressures have emerged.
The strength of the economic recovery has perhaps been most clearly evident in the labour market. Since the low point in 2012, close to 400,000 additional jobs have been created. As a result there are now more people in work than ever before. Importantly employment growth is broad based, with growth recorded in 10 of the 14 sectors reported by the CSO. Despite the improvements in the labour market, there remains some slack in the economy for employment to increase further.
Importantly the recovery in the economy has not yet given rise to significant inflationary pressures. For the first ten months of the year, inflation, as measured by the Harmonised Index of Consumer Prices (HICP), averaged just 0.7 per cent on an annual basis, this follows five consecutive years in which inflation has been below 1 per cent. Although price pressures have emerged in both the housing and the rental markets, this reflects the undersupply of housing over the last number of years, rather than evidence of over-heating pressures.
In relation to credit growth it should be noted that lending to Irish households only turned positive during the second half of 2017 after several years of contraction. Safeguards are now in place to help prevent a reoccurrence of the unsustainable build up in credit, most notability the macro-prudential regulations introduced by the Central Bank.
Over the coming years, our economy is expected to move towards full employment. As such, it is important that we remain cognisant of the upward pressure this will place on both prices and wages, which could give rise to a loss of competitiveness. While the economy is expected to continue to grow strongly, such pressures in the economy may give rise to imbalances over the medium term.
With this in mind, we will continue to focus on maintaining competitiveness-oriented policies and building capacity within the economy. In particular, we are now investing significantly to address the bottlenecks to growth which emerged during the economic recovery, such as the need for residential development and public infrastructure investment.
The Government will also continue to implement budgetary policies designed to enhance the resilience of our public finances. As set out in Budget 2019, we will ‘balance the books’ next year and are currently establishing the Rainy Day fund. This prudent approach to our public finances will help to mitigate against any future downturn in economy activity.
69. Deputy Michael McGrath asked the Minister for Finance the penalties and fines that would be imposed on applicants who make incorrect, intentional and unintentional applications to the scheme under the proposed changes in the employment investment incentive scheme, EIIS, in the Finance Bill 2018; and if he will make a statement on the matter. [48814/18]
View answerFinance Bill 2018 provides for a number of changes to the operation of the Employment Investment Incentive (“EII”). One of these is putting the claims on a self-assessment basis, with the company responsible for judging whether or not it meets the company conditions, and the individual investors responsible for judging whether or not they meet the investor conditions.
Under the proposed changes, the company will give the investor a “statement of qualification”, attesting to the fact that the company meets the company conditions. That statement is treated as a tax return filed with Revenue. Having received a “statement of qualification”, the investor will then claim the relief from Revenue. If the statement of qualification is incorrect, penalties could apply to it as they would to a tax return filed by the company. If the investor makes an incorrect claim for relief, other than because they were given an incorrect statement of qualification, then penalties may arise.
- Section 1077E of the Taxes Consolidation Act 1997 (TCA) sets out penalties for deliberately or carelessly making incorrect returns or failing to make returns.
- Section 1077E (2) provides that where a person deliberately makes an incorrect return, declaration, claim, statement or accounts to Revenue, that person will be liable to a penalty. The maximum penalty for tax defaults under this subsection is 100% of the tax underpaid.
- Section 1077E (5) provides that where a person carelessly (but not deliberately) delivers an incorrect return, makes an incorrect statement, claim or declaration or submits incorrect accounts, that person will be liable to a penalty. The maximum penalty for tax defaults under this subsection is 40% of the tax underpaid, or 20% of the tax underpaid if the underpayment is 15% or less of the person’s overall liability to tax for the period.
Revenue have informed me that, in both cases, the penalty shall be mitigated if the person who made the incorrect return, declaration, claim, statement or accounts co-operates with Revenue and/or makes a prompted or unprompted qualifying disclosure.
I am further advised by Revenue that reviews of both the “statement of qualification” and the individual’s claim for relief will be carried out in accordance with the Code of Practice for Revenue Audit and other Compliance Interventions.
70. Deputy Stephen S. Donnelly asked the Minister for Public Expenditure and Reform his plans to include private companies in the protected disclosures legislation, including companies providing healthcare services; and if he will make a statement on the matter. [48655/18]
View answerThe Protected Disclosures Act 2014 provides robust statutory protections for workers against the real or potential penalisation by their employers where they have brought concerns about wrongdoing in the workplace to light. The Act provides for a "stepped" dislcosure regime in which a number of distinct disclosure channels are available - internal, "regulatory" and external - which the worker can access to acquire important employment protections but which require different evidential thresholds.
The protections and disclosure channels under the Act are available to workers in both the private and public sectors, including to workers in companies providing healthcare services. There are specific requirements in relation to the public sector, in terms of the requirement to establish procedures for dealing with disclosures from workers, and the requirement to publish an annual report in relation to protected disclosures. While those requirements do not apply to the private sector, the Workplace Relations Commission has prepared a Code of Practice for employers, workers and their representatives in both the private and public sectors to assist in the practical implementation of the Act. This Code of Practice has been given a statutory basis through the Industrial Relations Act 1990 (Code of Practice on Protected Disclosures Act 2014) (Declaration) Order 2015 (S.I. No. 464 of 2015).
As stated in the statutory Review of the Protected Disclosures Act completed in July 2018, consideration will be given to requiring the private sector to establish internal procedures in the context of the negotiation of the EU Directive on whistleblowing (“Proposal for a Directive of the European Parliament and of the Council on the protection of persons reporting on breaches of Union law”) which was published in April 2018. This Proposal, as it is currently worded, contains requirements for private sector entities above certain thresholds to establish internal channels and procedures for reporting and following up on protected disclosures.
71. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will address a matter raised in correspondence (details supplied) in relation to the Public Service Superannuation (Age of Retirement) Bill 2018; and if he will make a statement on the matter. [48656/18]
View answerI refer the Deputy to my answer to PQ 46505/18 of 13 November 2018.
72. Deputy Willie Penrose asked the Minister for Education and Skills if an application for a minor works grant for a school (details supplied) will issue; and if he will make a statement on the matter. [48797/18]
View answerOn 14 September 2018, the announcement of the major package of investment in education under Project Ireland 2040 confirmed that, starting this year, all primary schools will receive the €29 million Minor Works Grant in either December or early January of each school year.
The minor works grant must be spent on the physical infrastructure of the school or on items of furniture and equipment for educational use including IT related equipment.
73. Deputy Kevin O'Keeffe asked the Minister for Education and Skills the position in relation to a building (details supplied). [48664/18]
View answerThe property referred to by the Deputy is not in my ownership. In common with other buildings of its kind, there is a charging lease in place on the property, in this case dated 1971 for 99 years to protect the state's investment in the property.
In circumstances where a property has ceased to be used as a school, and a request is received from the property owner to release the State's interest secured under a charging lease, such requests are considered in the context of the specific circumstances which pertain to the individual property.
I can confirm that my Department has not received a request from the property owners to release my interest in this property.
Further, my Department is not in a position to provide any financial support in this case as this property is not in my ownership.
74. Deputy Jackie Cahill asked the Minister for Education and Skills if he will commence discussions with the principals and boards of management in primary schools in Clonmel, County Tipperary and its environs for the provision of autism spectrum disorder, ASD, units to reflect the population size and demand for the service; and if he will make a statement on the matter. [48667/18]
View answerFunding for special education provision in 2018 will amount to some €1.75 billion, up 43% since 2011 and equivalent to 18.7% of the gross overall current allocation for education and training.
My Department's policy is to provide for the inclusive education of children with special educational needs, including Autism (ASD), in mainstream school settings, unless such a placement would not be in the best interests of the child concerned, or the children with whom they will be educated.
The greater proportion of children with Autism attend mainstream classes, but some require the environment of a special class or special school. This decision is based on a recommendation contained within a professional assessment and in consultation with the NCSE.
Special school placements are provided for other students with ASD and very complex special needs who wouldn’t manage in a mainstream school even for part of the week.
The NCSE is responsible, through its network of Special Needs Organisers, for the development and delivery and co-ordination of education services to children with Special Educational Needs, including the establishment of special class and special school placements.
Since 2011, the NCSE has increased the number of special classes from 548 in 2011 to 1,459 across the country now, of which 1,196 are Autism Spectrum Disorder (ASD) special classes.
There are 3 special schools and 66 special classes attached to mainstream schools in Co. Tipperary. Of these, 8 are ASD early intervention classes, 32 are primary ASD classes and 18 are post primary ASD classes. The number of ASD special classes in Co. Tipperary have increased from 10 in 2011/2012 to 58 in 2018/2019. Details of all special classes for children with special educational needs are available on www.ncse.ie.
The NCSE, in looking to open special classes, must take into account the present and future potential need for such classes, taking particular account of the educational needs of the children concerned. The NCSE will also take account of location and sustainability in looking to establish special classes in certain areas.
Schools may apply to the NCSE to open a special class where a need has been identified in their area. For example where a number of students have professional reports indicating they require the support of a special class.
Before approaching a particular school to request the establishment of a special class, SENOs take into account both present and future potential need within the area and must be satisfied that the class is sustainable and appropriately located.
The NCSE's planning for future projected need for special class provision in all areas of Co. Tipperary, is an on-going process. Should the NCSE identify the need to establish a new ASD special class in the Clonmel area in the future, it will consider all schools in the area in relation to establishing an ASD special class.
As the NCSE is responsible for the establishment of special classes, I have arranged for the Deputy's question on planning for emerging need in Clonmel to be forwarded to the NCSE for their attention and direct reply. My Department has no role in such matters.
75. Deputy Michael McGrath asked the Minister for Education and Skills if he will assist in resolving a matter relating to school transport for a person (details supplied); and if he will make a statement on the matter. [48702/18]
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
Bus Éireann has confirmed that a new contractor will provide a school transport service for the child in question from the beginning of December.
76. Deputy Michael McGrath asked the Minister for Education and Skills if a matter raised in correspondence (details supplied) in relation to teaching registration will be addressed; and if he will make a statement on the matter. [48706/18]
View answerThe correspondence referred to in the question has been received and considered in my Department.
Under the Teaching Council Acts 2001-2015 the Teaching Council is the body with statutory authority and responsibility for the regulation of the teaching profession in Ireland including the registration of teachers in the State.
The Teaching Council registers teachers in accordance with the Teaching Council [Registration] Regulations 2016, Statutory Instrument 444/2016, as amended, which provides for a number of routes of registration, including primary, post primary and further education.
Section 30 of the Teaching Council Acts requires that an applicant for a teaching position in a recognised school be registered with the Teaching Council in order to be paid from public funds.
Circular 31/2011 sets out to ensure, as far as possible, that people appointed to teach are registered teachers with qualifications appropriate to the sector and suitable to the post for which they are employed and that unemployed teachers are offered employment in preference to those who have retired.
77. Deputy Sean Fleming asked the Minister for Education and Skills the status of a matter (details supplied); and if he will make a statement on the matter. [48707/18]
View answerIt is a matter for each consortium of Institutes of Technology to progress their plans to seek designation as a technological university under the Technological Universities Act 2018 and culminating in the submission of an application to the Minister for Education and Skills for an order under section 36 of the 2018 Act.
In relation to the Technological University of South East Ireland (TUSEI) consortium comprising the Institute of Technology Carlow and Waterford Institute of Technology, the Minister of State for Higher Education, Mary Mitchell O’Connor T.D., has met with the Presidents and Chairs of both institutes on a number of occasions this year with a view to encouraging the progression of the TUSEI development project. It is understood that, as has been stated publicly, the consortium through its joint steering group is continuing to progress its work with a view to submitting an application for an order under section 36 of the 2018 Act by the end of 2018.
The TUSEI consortium has received some €1.72 million in Exchequer funding to date to advance their project, including €1m in higher education landscape restructuring funding which was announced by the Minister of State for Higher Education on 21 September 2018.
78. Deputy Peter Burke asked the Minister for Education and Skills when the minor works grant will issue to a school (details supplied); and if he will make a statement on the matter. [48725/18]
View answerOn 14 September 2018, the announcement of the major package of investment in education under Project Ireland 2040 confirmed that, starting this year, all primary schools will receive the €29 million minor works grant in either December or early January of each school year.
I expect to make an announcement shortly with regard to the timing of the payment of the Minor Works Grant for the current school year.
79. Deputy Mattie McGrath asked the Minister for Education and Skills the status of the amalgamation of schools (details supplied) in County Tipperary; and if he will make a statement on the matter. [48728/18]
View answerI wish to advise the Deputy that the amalgamation process involving the schools referred to will be finalised with the delivery of the major school building project.
The building project is currently at Stage 2B of Architectural Planning. Statutory Approvals, comprising Planning Permission, Disability Access Certificate and Fire Safety Certificate, have been granted.
My Department has authorised the project to proceed to carry out the pre-qualification of contractors which normally takes between 8 and 12 weeks to complete. The pre-qualification ensures that there are a number of appropriate and suitable candidates who can undertake the works successfully.
My Department has advised the school of the position and the timeframes involved.
80. Deputy Paul Kehoe asked the Minister for Education and Skills when funding will be rolled out for schools (details supplied); the way in which it can be applied for; and if he will make a statement on the matter. [48744/18]
View answerI wish to advise the Deputy that my Department's current focus is to prioritise funding for essential classroom accommodation to meet demographic need.
The Deputy will be aware that the National Development Plan (NDP) provides for an €8.4 billion investment in school buildings over the period 2018 to 2027 to deliver on NDP and National Planning Framework objectives through addressing the twin priorities of catering for demographics and ensuring a strengthened focus on refurbishment of existing school stock. The announcement referred to the commitment to a PE Hall build and modernisation programme in post primary schools, starting in the second half of the Project Ireland 2040 period. The manner in which this commitment will be progressed will be determined at that point.
I am aware of the important role that PE in schools plays in the development of a healthy lifestyle and this will continue to be a priority issue for my Department.
81. Deputy Thomas Byrne asked the Minister for Education and Skills the number of requests by him to the National Council for Curriculum and Assessment in each of the years 2011 to 2017 and to date in 2018 for the examination of the addition of subjects and-or reform of curricula (details supplied); the number for which an examination has been completed; the length of the examination in tabular form; and if he will make a statement on the matter. [48752/18]
View answerThe following table sets out the main requests from Ministers/DES Management formally received by the NCCA over the period in question and progress/outcomes in relation to these. However, it is very important to note that the NCCA is an aegis body of the DES and as such many of the main areas of their work are discussed and decided on in the context of regular deliberations on the NCCA’s Strategic Plan, its Annual Plans of Work, the Department’s Action Plans and the national strategies and initiatives prioritised by the Department. For example Languages Connect, my Departments Foreign Language Strategy requires the development of new syllabuses in Mandarin, Portuguese, Polish and Lithuanian. Therefore, the specific requests tabulated represent only one dimension of the work of the NCCA as a statutory body.
|
Date |
Request |
Progress/Outcomes |
|
August 2011 |
Request to develop new curriculum specifications for Languages (Irish and English) and Mathematics st primary level in line with actions included in the DES Literacy and Numeracy Strategy. |
A new Languages curriculum has been developed and introduced on a phased basis. Work on the Mathematics curriculum for is ongoing. |
|
November 2012 |
Request for NCCA to develop a Framework for Junior Cycle |
The Framework was introduced in schools in 2015. From 2014-2018 NCCA completed work on 21 subject specifications, 11 short courses and Guidelines on Wellbeing in the context of developing the contents of the Framework. |
|
April 2013 |
General request to continue to prioritise work on the Irish language at primary, junior and senior cycle levels. |
An integrated languages curriculum has been developed at primary level. New specifications for Junior Cycle Irish for Irish-medium and English-medium schools have been introduced in schools in 2018. Work on new Leaving Certificate specifications is ongoing. |
|
October 2013 |
Request to develop the Aistear/Síolta Practice Guide for Early Childhood Education. |
Practice guide developed, in use and providing a basis for professional development in the sector. |
|
January/February 2015 |
Request to develop a short course in Junior Cycle Philosophy and continue development of LC Politics and Society |
LC Politics and Society introduced in schools in 2016. JC Philosophy available to schools in 2017. |
|
March 2015 |
Request to develop a standard report template as part of the Framework for Junior Cycle and the junior cycle developments |
The report template for the Junior Cycle Profile of achievement was developed and introduced for the first cohort of students in 2017. |
|
April 2015 |
Request to develop Guidelines on the new curriculum area of Wellbeing as part of the Framework for Junior Cycle and the junior cycle developments |
Guidelines on Wellbeing were developed and introduced for use in schools in 2017. |
|
December 2016 |
Request to consider potential for introduction of Leaving Certificate Computer Science and Coding at primary level into the curriculum |
LC Computer Science developed in 2017 and introduced in schools in 2018. Development work with schools on coding ongoing and informing primary curriculum review. |
|
April 2018 |
Request to review Relationships and Sexuality Education in schools |
Review ongoing. Report in Q2, 2019. |
|
September 2018 |
Request to conduct a curriculum audit of Traveller culture and history in the curriculum |
Audit commencing November 2018. Report Q2, 2019. |
|
November 2018 |
Request to develop a new second assessment component for Leaving Certificate Science subjects |
Work commencing December 2018. |
82. Deputy Thomas Byrne asked the Minister for Education and Skills the funding provided to the National Council for Curriculum and Assessment in each of the years 2011 to 2017. [48753/18]
View answerThe following table shows the NCCA’s funding for the years 2011 to 2017.
NCCA Funding in €1,000's
|
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
3,447 |
3,225 |
4,162 |
4,441 |
4,341 |
4,664 |
5,204
|
83. Deputy Thomas Byrne asked the Minister for Education and Skills the staff complement and grades of the National Council for Curriculum and Assessment. [48754/18]
View answerThe NCCA has the following staff:
|
Grade |
Number |
|
Chief Executive |
1 |
|
Deputy Chief Executives: 2 |
2 |
|
Directors, Curriculum and Assessment: 6 |
6 |
|
Corporate Services |
|
|
Assistant Principal 1 |
1 |
|
Higher Executive Officer 2 |
2 |
|
Executive Officer 2 |
2 |
|
Clerical Officer 4 |
4 |
|
Temporary Clerical Officer 1 |
1 |
|
Education Officers |
27 |
|
Project Officers |
1 |
|
Aistear Co-ordinator (funded by DCYA). |
1 |
|
Total |
48 |
