Written Answers Nos. 72-90
72. Deputy Marc MacSharry asked the Minister for Finance the date of meetings held by him or his officials with the joint special liquidators of IBRC since the liquidation commenced on 7 February 2013 in relation to the costs incurred by the joint special liquidators in the liquidation; if the minutes of those meetings will be provided; and if he will make a statement on the matter. [3237/19]
View answerFollowing the liquidation of IBRC in February 2013 Department of Finance officials formally met with the Special Liquidators on a very frequent basis; however, given the progress being made on the liquidation, the frequency of these formal meetings has reduced as is to be expected.
A breakdown by year of the formal update meetings that have taken place between my Department and the Special Liquidators of IBRC is below:
|
Year |
Formal Update Meetings |
Gross value of loans outstanding at Y/E |
|
2013 |
36 |
€21.7bn |
|
2014 |
18 |
€5.15bn |
|
2015 |
8 |
€3.6bn |
|
2016 |
8 |
€3.6bn |
|
2017 |
4 |
€3.5bn |
|
2018 |
4 |
€3.4bn |
|
Total |
78 |
|
At these formal meetings the Special Liquidators update officials on the progress of the liquidation and bring to their attention any issues which they feel my Department should be made aware of during these meetings. Should my officials have any queries in relation to the professional fees associated with the liquidation or other costs incurred then this matter would be raised during these update meetings. Minutes of meetings with the Special Liquidators are not published as they are commercially sensitive due to the ongoing nature of the liquidation.
Officials also meet and speak regularly with the Special Liquidators outside of a formal meeting setting as specific matters arise. Such interactions are frequent and can range from a daily to a weekly basis.
The Special Liquidators publish an annual progress update report on the liquidation of IBRC which is publicly available and this report also has a section on fees and costs of the liquidation and also outlines the various cost management activities undertaken by the Special Liquidators and the nature of the on-going interaction with the Department in this regard. In addition, my officials receive a quarterly report from the Special Liquidators which gives an update on the liquidation of IBRC. This report outlines the progress being made by the Special Liquidators on the various work streams which are on-going. The report also provides a fee update for the period for which the report relates to. Department of Finance officials review these reports once received and revert to the Special Liquidators should they have any queries on any aspect of the report.
74. Deputy Pat Deering asked the Minister for Finance the financial and health advice received from the Revenue Commissioners and the Department of Health, respectively, in relation to the proposed introduction of 23% VAT rate on health food supplements, for example, folic acid recommended to pregnant women and persons with anaemia that need iron supplements (details supplied); if this is implemented, if certain supplements will be exempt; and if he will make a statement on the matter. [3242/19]
View answerThe standard rate of VAT applies to food supplements. However, a Revenue Commissioners concession allowed the zero rate to be applied to certain types of vitamins, minerals and fish oils. Revenue has since decided to remove this concession with effect from 1 March 2019 so that all food supplements will be charged at the standard VAT rate.
The operation of the concession became extremely problematic as a result of efforts by certain businesses in the industry to extend the concession beyond the scope permitted. Consistent challenges to Revenue guidance and decisions on the VAT rating of products gave rise to serious concerns about compliance within the industry and unfair competition between compliant and non-compliant businesses.
However, independent of Revenue’s decisions on interpretation, I agreed during the recent Finance Bill to put in place a process that will conclude in the 2019 Tax Strategy Group Paper to examine some of the policy choices around the VAT treatment of food supplements.
It should be noted, however, that human oral medicines, including certain folic acid and other vitamin and mineral products, licenced by the Health Products Regulatory Association will continue to apply at the zero rate of VAT. Infant foods will also continue to be zero rated.
75. Deputy Michael McGrath asked the Minister for Finance his plans to proceed with proposals to increase the interest rate limit for credit unions; when this change is likely to come into effect; and if he will make a statement on the matter. [3253/19]
View answerAs the Deputy is aware, Section 38 1(a) of the Credit Union Act 1997 prescribes that the interest on a Credit Union loan shall not at any time exceed 1% per month. This represents an APR of 12.68%.
In a Credit Union Advisory Committee (CUAC) Policy Paper published in December 2017, the CUAC recommended that credit unions should be permitted to charge an interest rate on loans greater than the present ceiling of 1% per month and proposed that the cap be raised to 2% per month. This change would provide credit unions with greater flexibility to risk price loan products and in so doing may create an opportunity for new product offerings. The CUAC came to this recommendation following a survey of the credit union sector with responses from 117 credit unions.
The CUAC Implementation Group considered this recommendation and agreed in principle to recommend that the Minister raise the interest rate ceiling to 2% per month and for flexibility to be introduced to allow the interest rate to be amended in future by Statutory Instrument following consultation with the Central Bank and CUAC.
Introducing this recommended change to the interest rate cap requires primary legislation to amend section 38 1(a) of the Credit Union Act 1997. I have therefore asked my officials to begin preparations for this legislative change to the interest rate cap which will shortly be brought forward through the normal legislative process, subject to Cabinet approval.
76. Deputy Michael McGrath asked the Minister for Finance the number of persons working in the Revenue Commissioners on EIIS; the number that were working on same in 2018; and if he will make a statement on the matter. [3254/19]
View answerAs the deputy will be aware, Finance Act 2018 changed the way in which relief under the Employment Investment Incentive is claimed for share issues on or after 1 January 2019.
For share issues prior to 1 January 2019, companies had to receive Revenue certification for each share issue before the investors could claim relief. Prior to issuing shares, companies could apply for “outline approval”. Outline approval was Revenue expressing an opinion, based on the information provided, that a company was a qualifying company.
For share issues from 1 January 2019, the company must provide the investor with a “statement of qualification” confirming that it meets the conditions applicable to the company. The company may request Revenue’s opinion on whether or not it satisfies some of the more complex conditions, specifically those that emanate from European State Aid law. When an investor receives a “statement of qualification”, they must decide if they meet the conditions applicable to qualify for the relief themselves.
The scheme was redesigned to remove the administrative inefficiencies that were inbuilt, and ensure that compliant companies and investors could claim the relief on a more timely basis.
I am advised by Revenue that, in terms of whole-time equivalents, up to July 2018 there were 3.5 officers engaged in the EII processing unit. From July 2018 until December 2018 there were 7.5 officers, and from January 2019 there are 6.5 officers.
77. Deputy Michael McGrath asked the Minister for Finance the potential penalties for a company and an investor if they incorrectly apply for EIIS following changes in Finance Act 2018; if there are interest or penalties incurred; and if he will make a statement on the matter. [3255/19]
View answerSection 25 of Finance Act 2018 provides for a number of changes to the operation of the Employment Investment Incentive (“EII”) in the Taxes Consolidation Act 1997 (TCA) .
One of the changes 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. There are therefore two applicants under the newly designed scheme:
1. 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.
2. Having received a “statement of qualification”, the investor then claims the relief from Revenue.
If that statement of qualification is incorrect, penalties can apply to it as they can apply 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 508U of the TCA (as amended by Finance Act 2018) provides that in circumstances whereby the investor could not have known that the company was not a qualifying company, the withdrawal of the relief will occur by the making of an assessment against the qualifying company. The liability will fall to the company not the investor.
Section 508V provides in circumstances whereby the investor could or would have known that the company was not a qualifying company, the withdrawal of the relief will occur by the making of an assessment against the investor. The liability will fall to the investor.
Section 1077E 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.
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 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. This can be found on the revenue website:
https://www.revenue.ie/en/self-assessment-and-self-employment/code-of-practice-and-compliance/index.aspx.
78. Deputy Kevin O'Keeffe asked the Minister for Finance if an application submitted under the disabled drivers tax concession scheme by a person (details supplied) will be expedited. [3281/19]
View answerI am advised by Revenue that the issue in this case has been resolved and the person’s application for tax relief under the Scheme for Persons with Disabilities has been approved. The refund payment will issue to the person within the next five to seven working days.
The delay in approving the person’s application occurred because the PPS number provided was no longer valid. However, Revenue immediately processed and approved the application once the person’s new PPS number was confirmed.
79. Deputy Catherine Murphy asked the Minister for Finance the number of regular grade civil servants his Department has hired in advance of a no-deal Brexit; the number of specialist grade civil servants hired in advance of same; the budget made available in advance of Brexit for hiring of staff in advance of the UK withdrawal from the EU; and if he will make a statement on the matter. [3321/19]
View answerI wish to inform the Deputy that the Assistant Secretary who heads the EU and International Division of my Department is designated as the lead official in the Department for Brexit matters. A dedicated Brexit Unit within the EU and International Division was established in July 2016 to oversee and coordinate Brexit work across the entire Department and to act as a key liaison point, in particular with the Departments of the Taoiseach and of Foreign Affairs and Trade. There are currently four staff in the dedicated unit which is led at Principal Officer level. Also, an additional staff member has been assigned to the Permanent Representation to the EU in Brussels specifically to deal with Brexit.
We have appointed lead Brexit coordinators at Principal Officer level across all divisions of the Department. The challenges which we face as a result of Brexit are mainstreamed across all divisions of my Department and this is reflected in business planning.
In July 2018, and again in September 2018, a number of decisions were made at Cabinet relating to Brexit preparedness and contingency planning, including the phased recruitment of staff, as required.
The Government has already sanctioned €4m for the commencement of a phased process for the recruitment of additional staff to carry out the greatly increased volumes of import controls and export certification arising from Brexit.
80. Deputy Catherine Murphy asked the Minister for Finance the number of extra Revenue Commissioners staff and-or customs officials hired in the past two years to specifically deal with Brexit issues; and if he will make a statement on the matter. [3338/19]
View answerI am advised by Revenue that they have estimated that an additional 600 staff would be required as a result of Brexit. Such staff are to be deployed on a phased basis in the period up the end of December 2020. It is estimated that approximately half will be assigned to import/export trade facilitation activities; and half to the national divisions, engaged in trade facilitation, and customs control and oversight activities, at specific trader case level.
Budget 2017 provided funding for 40 Revenue staff to prepare for Brexit; and by the end of last year, these new staff had completed their training and were deployed. A Government Decision of September 2018 approved the phased recruitment of additional staff. Internal; inter-departmental; and open recruitment campaigns began. The Public Appointments Service ran an open recruitment campaign, for Customs Officers to work on a 24/7 basis, which attracted more than 3,000 applications. Interviews began in October 2018 and successful candidates proceed onto a five-week training programme. Revenue has appointed over 110 staff to Trade Facilitation in the period September 2018 to 23 January 2019.
In preparation for a no-deal Brexit, I am advised by Revenue that they have accelerated and expanded their recruitment and training schedules to meet the end of March deadline and are on track to have over 400 additional staff in place by the end of March. The balancing complement of additional staff will be recruited by the end of 2019.
81. Deputy Robert Troy asked the Minister for Public Expenditure and Reform if lands proximate to Dublin Port and Rosslare Europort have been identified for purchase in the event of a no-deal Brexit; and if he will make a statement on the matter. [3131/19]
View answer83. Deputy Lisa Chambers asked the Minister for Public Expenditure and Reform if a timetable and schedule of works has been drawn up for Dublin Port, Rosslare Port and Dublin Airport that details when they expect works to be completed to prepare for Brexit, including in the event of a no-deal Brexit and a Brexit deal and a transition period until December 2020; and if he will make a statement on the matter. [3261/19]
View answerI propose to take Questions Nos. 81 and 83 together.
On the 19 December 2018 the Government published its Contingency Action Plan which gives an overview of the comprehensive, cross-Government preparations that are underway. Preparations will continue on the central case scenario, in which a Withdrawal Agreement is concluded between the EU and the UK. Preparations have now been extended to include the scenario in which the UK leaves with no agreement. This includes putting in place the infrastructure required at ports and airports in both scenarios.
The Office of Public Works has been mandated to secure the property required at Dublin Port and Rosslare Europort and to undertake the necessary work to ensure that the additional infrastructure required as a consequence of the UK leaving the EU becomes operational in a timely manner. This work is ongoing.
The existing facilities in Dublin Airport are sufficient in the event of a no deal Brexit. Detailed design is ongoing to provide an enhanced facility to be in place in a central case scenario.
82. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if a public servant who has already availed of a one year extension of their service can avail of the new measures to extend their employment under the terms of the Public Service Superannuation (Age of Retirement) Act 2018; and if he will make a statement on the matter. [3152/19]
View answerI refer the Deputy to my reply to PQ 1083/19 to Deputy Fiona O'Loughlin on the 15 January 2019.
84. Deputy Darragh O'Brien asked the Minister for Public Expenditure and Reform the number of projects that have undergone a cost benefit analysis per annum since 2011 by year and Department; and if he will make a statement on the matter. [3285/19]
View answerThe Public Spending Code is the set of rules and procedures that apply to ensure that value for money standards are upheld across the Irish Public Service. The Public Spending Code encompasses guidance on a variety of issues related to the management of expenditure at each stage of the expenditure lifecycle. This includes central guidance on the application of appraisal and evaluation methodologies including cost benefit analysis. The Public Spending Code is supplemented in some instances by sectoral specific appraisal guidance. These are developed by the relevant Department and set out additional requirements and parameters specific to the sector, while remaining in the line with the Public Spending Code.
The Public Spending Code requires that Sponsoring Agencies, i.e. those that are responsible for delivering projects, prepare an economic appraisal such as a cost benefit analysis or a cost effectiveness analysis for current and/or capital expenditure projects or programmes which cost over €20 million before the relevant Sanctioning Authority, i.e. usually the body providing the funding, makes a decision on whether to approve the project. The Public Spending Code also requires that the economic appraisal is submitted to the Department of Public Expenditure and Reform for technical review. The purpose of the technical review is to support consistency in the application of the Public Spending Code guidance.
The Public Spending Code requirements do not prohibit Sponsoring Agencies from conducting cost benefit analysis on projects costing less than €20 million. The Public Spending Code guidance stresses the need for proportionality in appraisal and for Sponsoring Agencies to choose the appraisal methodology that is most appropriate for assessing the value for money of a project or programme.
Responsibility for complying with the requirements of the Public Spending Code including on appraisal is a matter for each Sponsoring Agency and Sanctioning Authority. The Department of Public Expenditure and Reform does not see all cost benefit analyses conducted by each Sponsoring Agency and does not collect statistics on numbers of appraisals.
The Project Ireland 2040 Capital Tracker will, going forward, capture information on projects at each stage of the project life cycle. The tracker is published at https://www.per.gov.ie/en/national-development-plan-2018-2027/. This will provide additional information on the appraisal of capital projects in the National Development Plan.
The newly established Investment Projects and Programmes Office (IPPO) in the Department of Public Expenditure & Reform will play an important role in strengthening the appraisal and evaluation of investment projects and programmes. A review of the Public Spending Code is underway. The IPPO is updating the capital appraisal guidelines in the Public Spending Code. As each element of that review is completed, it will be published.
85. Deputy Darragh O'Brien asked the Minister for Public Expenditure and Reform the average length of time taken to process a cost benefit analysis by Department in 2017 and 2018; and if he will make a statement on the matter. [3286/19]
View answerThe Public Spending Code is the set of rules and procedures that apply to ensure that value for money standards are upheld across the Irish Public Service. The Public Spending Code encompasses guidance on a variety of issues related to the management of expenditure at each stage of the expenditure lifecycle. This includes central guidance on the application of appraisal and evaluation methodologies including cost benefit analysis. The Public Spending Code is supplemented in some instances by sectoral specific appraisal guidance. These are developed by the relevant Department and set out additional requirements and parameters specific to the sector, while remaining in the line with the Public Spending Code.
The Public Spending Code requires that Sponsoring Agencies, i.e. those that are responsible for delivering projects, prepare an economic appraisal such as a cost benefit analysis or a cost effectiveness analysis for current and/or capital expenditure projects or programmes which cost over €20 million before the relevant Sanctioning Authority, i.e. usually the body providing the funding, makes a decision on whether to approve the project. The Public Spending Code also requires that the economic appraisal is submitted to the Department of Public Expenditure and Reform for technical review. The purpose of the technical review is to support consistency in the application of the Public Spending Code guidance.
The Public Spending Code requirements do not prohibit Sponsoring Agencies from conducting cost benefit analysis on projects costing less than €20 million. The Public Spending Code guidance stresses the need for proportionately in appraisal and for Sponsoring Agencies to choose the appraisal methodology that is most appropriate for assessing the value for money of a project or programme.
Responsibility for complying with the requirements of the Public Spending Code including on appraisal is a matter for each Sponsoring Agency and Sanctioning Authority. The Department of Public Expenditure and Reform does not see all cost benefit analyses conducted by each Sponsoring Agency and does not collect statistics on numbers of appraisals or length of time to conduct and process appraisals. Each Government Department is required to prepare an annual Quality Assurance Report on how it is meeting its Public Spending Code obligations. Part of this obligation includes regular in-depth checks of a sample of projects and programmes to monitor the quality of the appraisal and assess the appraisal process.
The Project Ireland 2040 Capital Tracker will, going forward, capture information on projects at each stage of the project life cycle. The tracker is published at https://www.per.gov.ie/en/national-development-plan-2018-2027/. This will provide additional information on the appraisal of capital projects in the National Development Plan.
The newly established Investment Projects and Programmes Office (IPPO) in the Department of Public Expenditure & Reform will play an important role in strengthening the appraisal and evaluation of investment projects and programmes. A review of the Public Spending Code is underway. The IPPO is updating the capital appraisal guidelines in the Public Spending Code. As each element of that review is completed, it will be published.
86. Deputy Darragh O'Brien asked the Minister for Public Expenditure and Reform the number of staff based in the central expenditure evaluation unit per annum since 2011; and if he will make a statement on the matter. [3287/19]
View answerThe Central Economic and Evaluation Unit (CEEU) became part of the Department of Public Expenditure and Reform during 2011. At the end of 2011, there was one Principal Officer, five Assistant Principals, a Higher Executive Officer, an Executive Officer, a Services Officer and a Clerical Officer in the CEEU.
The Irish Government Economic and Evaluation Service (IGEES) was set up in 2012 and largely subsumed the work of the CEEU. It is an integrated, cross-Government network that aims to support better policy formulation and implementation in the civil service through economic analysis and evaluation.
As a broad network, IGEES numbers across Government Departments include both people directed recruited into IGEES and existing staff who participate in evidence based policy research. We estimate that the number of IGEES network members has increased from over 30 in 2012; to over 50 in 2013; and (approximately in each year) 70 in 2014; 80 in 2015; 90 in 2016; 120 in 2017 and 160 in 2018.
The majority of those currently active in IGEES roles are economists. However IGEES members also come from a wide variety of backgrounds including statistics, data analysis, social science, evaluation, and policy analysis.
87. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the number of regular grade civil servants his Department has hired in advance of a no-deal Brexit; the number of specialist grade civil servants hired in advance of same; the budget made available in advance of Brexit for hiring of staff in advance of the UK withdrawal from the EU; and if he will make a statement on the matter. [3326/19]
View answerBudget 2019 includes specific measures aimed at continuing our comprehensive domestic response to the impact of Brexit across Government. This included €4 million for the recruitment on a phased basis of additional staff to implement necessary measures including in the areas of customs, SPS and food safety controls.
Within my own Department Brexit issues are coordinated by the Brexit/EU/North South Unit. The Unit supports me in my work on Brexit, leads work across the Department and its agencies, and represents the Department on the various groups that coordinate's the Government's response to Brexit. Brexit issues are also addressed by staff in relevant areas across the Department.
88. Deputy Brendan Ryan asked the Minister for Education and Skills further to Parliamentary Question No. 136 of 21 November 2018, if his Department has received the cost benefit analysis from Maynooth University, Maynooth, County Kildare in relation to future campus development plans under the NDP 2018 to 2027; if the HEA has invited applications for funding under the strategic infrastructure fund; and if he will make a statement on the matter. [3124/19]
View answerMy department has not yet received a cost benefit analysis from Maynooth University in relation to future campus development plans.
However, the Higher Education Authority (HEA) has issued a call for applications to the newly established €80m Higher Education Strategic Infrastructure Fund (HESIF) with a closing date for expressions of interest on 17th January, 2019. The HEA has informed my Department that Maynooth University has expressed an interest in the HESIF.
A cost benefit analysis is required as part of the formal application for funding. The deadline for this application is 21st March, 2019.
89. Deputy Brendan Howlin asked the Minister for Education and Skills the date of retirement in the case of a person (details supplied); and if he will make a statement on the matter. [3156/19]
View answerI wish to advise the Deputy the person to whom he refers, was provided with an estimate of pension benefits which also included the relevant information of the earliest date of retirement without an actuarial reduction in benefits. This correspondence issued from my Department on 16th January 2019. Should the person concerned have any further queries in relation to this matter she should contact the Pension Unit of my Department who will provide the necessary clarification.
90. Deputy Fiona O'Loughlin 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. [3217/19]
View answerFunding was provided as follows:
|
NCCA Funding |
2011-2017 |
|
Year |
Outturn € 000's |
|
2011 |
3,447 |
|
2012 |
3,225 |
|
2013 |
4,162 |
|
2014 |
4,441 |
|
2015 |
4,341 |
|
2016 |
4,664 |
|
2017 |
5,204 |
