Tuesday, 2 Apr 2019

Written Answers Nos. 118-136

Tax Clearance Certificates

Questions (118)

Bernard Durkan

Question:

118. Deputy Bernard J. Durkan asked the Minister for Finance if a tax clearance certificate can issue in the case of persons (details supplied); and if he will make a statement on the matter. [15186/19]

Written answers

Minister for Finance

I am advised by Revenue that it has no record of an application for tax clearance from the person concerned.

They can apply for a Tax Clearance Certificate on www.revenue.ie using either ROS (business customers) or MyAccount (PAYE and non-ROS customers).

If the individual requires any further information or assistance they should contact Revenue’s Helpline at 01-7383663.

Budget Targets

Questions (119, 121, 122, 123, 124)

Pearse Doherty

Question:

119. Deputy Pearse Doherty asked the Minister for Finance the projected one-off or temporary measures of spending from 2019 to 2024 or the latest available date in percentage of GDP and gross terms in tabular form. [15216/19]

Pearse Doherty

Question:

121. Deputy Pearse Doherty asked the Minister for Finance the expenditure allowed in 2020 and 2021 that would be permissible before breaching the medium-term budgetary objectives taking into account projected general Government balances; and if he will provide the same data for different Brexit scenarios. [15218/19]

Pearse Doherty

Question:

122. Deputy Pearse Doherty asked the Minister for Finance the projected fiscal space from 2019 to 2024 or the latest available date; and if he will provide the same data for different Brexit scenarios in tabular form. [15219/19]

Pearse Doherty

Question:

123. Deputy Pearse Doherty asked the Minister for Finance the projected total general Government revenue from 2019 to 2024 in both gross figures and as a percentage of GDP; and if he will provide the same data projected for different Brexit scenarios. [15220/19]

Pearse Doherty

Question:

124. Deputy Pearse Doherty asked the Minister for Finance the projected total general Government expenditure from 2019 to 2024 in both gross figures and as a percentage of GDP; and if he will provide the same data projected for different Brexit scenarios. [15221/19]

Written answers

Minister for Finance

I propose to take Questions Nos. 119 and 121 to 124, inclusive, together.

The most recent projections for general government revenue, expenditure and one-off/temporary measures were outlined in my Department's Autumn forecasts contained in the Economic and Fiscal Outlook which was published as part of Budget 2019. These figures are reproduced in the table.

My officials are in the process of preparing the Stability Programme Update 2019 (SPU), which will update these projections taking into account the most up-to-date information.

Projections beyond 2023 have not been compiled by my Department.

-	2019	2020	2021	2022	2023
general government revenue, € million	85,235	88,900	92,600	96,645	100,675
general government expenditure, € million	85,310	87,840	90,985	92,480	94,865
one-off/temporary measures, € million	0	0	0	0	0
general government revenue, per cent of GDP	25.0	24.7	24.6	24.6	24.6
general government expenditure, per cent of GDP	25.0	24.4	24.2	23.6	23.2
one-off/temporary measures, per cent of GDP	0.0	0.0	0.0	0.0	0.0

The economic and budgetary outlook is subject to considerable uncertainty at present, given the UK's forthcoming exit from the European Union. In this regard, my Department has published several pieces of analysis in order to inform Government of the likely macroeconomic and fiscal consequences, and these are available on my Department's website.

The analysis published last week in conjunction with the Economic and Social Research Institute (ESRI) shows the impact of a number of scenarios (from orderly to disorderly exit) taking into account a wider set of channels (including tariffs, non-tariff barriers, FDI impact).

In a disorderly, no-deal scenario, the level of economic activity in Ireland after a decade would be around 5 percentage points below a hypothetical scenario in which the UK did not leave the EU. The general government balance would be 1 percentage point worse. These budgetary data are available on a headline basis only; a breakdown between general government revenue and expenditure is not available.

The model used to generate these forecasts is a medium-term structural model of the Irish economy. These structural models are designed inter alia to simulate shocks to the economy but, as is normally the case, the impact is assessed over the medium-term. These models are generally less-suited to short-term diagnostics. This requires an element of judgement and, on this basis, my Department will publish economic forecasts over the 2019-2023 period under different scenarios in the forthcoming SPU.

As I have said previously, budgetary policy will be based on doing what is right for the economy and not on the basis of ill-fitting fiscal rules. In this regard, I would direct the Deputy to the Parliamentary Budget Office whose role is to assist the Oireachtas in these matters.

The Deputy will be aware that there are several inputs to calculate the so-called structural balance, with many moving parts. Revised numbers will be set out in the SPU. I would stress once again, however, that minimum compliance with the fiscal rules is not an appropriate policy at this stage of the economic cycle.

Question No. 120 answered with Question No. 113.

Questions Nos. 121 to 124, inclusive, answered with Question No. 119.

Home Renovation Incentive Scheme

Questions (125)

Eamon Scanlon

Question:

125. Deputy Eamon Scanlon asked the Minister for Finance his plans to reintroduce the home renovation incentive; and if he will make a statement on the matter. [15248/19]

Written answers

Minister for Finance

The Home Renovation Incentive (HRI) was introduced by Section 477B of the Taxes Consolidation Act 1997 in 2014.  I currently have no plans to re-open the scheme which terminated in accordance with its sunset clause on 31 December 2018.

Under my Department's Tax Expenditure Guidelines, the introduction of new tax incentive measures should only be considered in circumstances where there is a demonstrable market failure and where a tax based incentive is more efficient than a direct expenditure intervention.

The HRI was introduced at a time when there was considerable loss of employment within the construction sector, with the aim of addressing this market failure by stimulating increased activity in the sector. In the current context of a growing economy and construction sector, the initial objectives of the scheme have been fulfilled, and this support is no longer needed in the terms in which it was originally envisaged.  

Furthermore, in light of the current housing supply shortage, and the need to deliver 25,000 additional housing units per annum over the period 2017-2021, there is a risk that the HRI could lead to increased competition for scarce resources within the construction sector, leading to upward pressure on construction costs and house prices. The potential for displacement of labour from work on new builds to work on home renovations would create a high opportunity cost of labour associated with HRI which was not present at the inception of the scheme.

Revenue advise me that, as of 2 January 2019, the cost to the Exchequer of the HRI was c. €105 million, with a further €65 million worth of credits yet to be claimed in respect of the incentive. As the Deputy will appreciate, I must be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base.

Insurance Costs

Questions (126, 134)

John Curran

Question:

126. Deputy John Curran asked the Minister for Finance his views on the number of soft play centres for children that are being forced to close down on account of the high cost of business insurance; and if he will make a statement on the matter. [15281/19]

Kate O'Connell

Question:

134. Deputy Kate O'Connell asked the Minister for Finance the actions he is taking to address the concerns of owners of indoor play centres with regard to the unsustainable increase in insurance costs which is causing many of these businesses to close down; and if he will make a statement on the matter. [15480/19]

Written answers

Minister for Finance

I propose to take Questions Nos. 126 and 134 together.

I am aware of what appears to be a growing issue of indoor/soft play centres closing due to increased insurance costs. As the Deputy will appreciate, data on the exact numbers of play centres closing is not collected by my Department nor the Central Statistics Office.

My understanding is that the main reason for the difficulties being faced by the play centre sector is due to a lack of capacity in the insurance market, which I understand has been driven to some degree by the overall claims level in the sector.  In determining their willingness to enter into or remain in a particular sector of the market, insurers will generally make an assessment of what they consider the overall risk to be. Therefore, part of their assessment of what premium level to charge, or whether to offer cover in the first place will be based on what they consider the general likely trend for claims in the sector will be, based on their overall past experience.

In a recent meeting with Insurance Ireland, I understand that Minister of State D'Arcy, who has responsibility for Insurance within my Department, raised the issue of the difficulties play centres currently face in securing insurance.  In response, Insurance Ireland highlighted the problems that Irish insurers encountered in this sector regarding claims and specifically the high amounts being paid out.  Having said that, Insurance Ireland agreed to relay Minister of State, Deputy D’Arcy’s concerns to its members taking into account some of the implemented and proposed Cost of Insurance Working Group reforms, including the proposal to implement the recommendations of the second Personal Injuries Commission Report.

As the Deputy will be aware the Cost of Insurance Working Group (CIWG), which was established in July 2016, has undertaken a detailed examination of the factors contributing to the cost of insurance in order to identify what short, medium and long-term measures could be introduced to help reduce the cost of insurance for consumers and businesses.

The CIWG has produced two reports and eight quarterly progress updates on the various recommendations made by CIWG and endorsed by Government.  The difficulties facing the consumer, voluntary and small business sector from the high cost of insurance premiums are recognised.  In addition, it is also acknowledged that in some cases the survival of a business as a viable entity is being put at peril because of insurance pricing.  One of the key areas raised by various stakeholders to the CIWG is the level of awards in this country compared with elsewhere.  As a result, the Working Group established the Personal Injuries Commission (PIC) and commissioned it to examine this issue amongst other things.  The PIC reported in September 2018 and concluded that soft tissue injuries are significantly higher here than in the UK and other jurisdictions and recommended that action be taken to address this disparity through the establishment of the Judicial Council.  The PIC recommended that this body would become responsible for preparing the guidelines on personal injury award levels, and would replace the Book of Quantum.  In doing this, the PIC believes that the Judicial Council will, in compiling the guidelines, take account of the jurisprudence of the Court of Appeal and the results of its benchmarking exercise.

The current position with the Judicial Council Bill is that the Minister for Justice and Equality has recently advised of his intention to further this Bill with a view to having it in place as soon as possible.  I understand the Bill is scheduled for Committee Stage in the Seanad next Tuesday. Alongside this, the Law Reform Commission has included the subject of capping damages in personal injuries litigation in its 5th Programme of Law Reform and this project is being given immediate attention.  It is hoped that if there was a significant move in this area, it could have an impact on insurance pricing and could also help attract new entrants into the market.  Such outcomes would be of benefit to all concerned and in particular to small businesses such as those in the play centre sector.

Carbon Tax Collection

Questions (127)

John Curran

Question:

127. Deputy John Curran asked the Minister for Finance the tax yield for each carbon fuel type by year in tabular form; the total for each year since the carbon tax was first introduced; and if he will make a statement on the matter. [15282/19]

Written answers

Minister for Finance

I am advised by Revenue that the tax yield for Carbon Tax and each carbon fuel type for the years 2010 to 2017 is published on the Revenue website and is available at link: https://www.revenue.ie/en/corporate/documents/statistics/excise/net-receipts-by-commodity.pdf. The provisional yield for each carbon fuel type for 2018 is provided in the following table.

2018	€m
Auto diesel	182.8
Petrol	48.1
Aviation Gasoline	0.0
Kerosene	58.6
MGO	54.1
Fuel Oil	1.8
LPG (other)	10.2
Auto LPG	0.1
Natural Gas	50.0
SFCT	25.3
Total	431.1

 

 The 2018 finalised yields for each carbon fuel type will be published on the Revenue website by end Q3 2019.

Carbon Tax Yield

Questions (128)

John Curran

Question:

128. Deputy John Curran asked the Minister for Finance the way in which the tax yield from the carbon tax was spent in the years since the tax was first introduced; and if he will make a statement on the matter. [15283/19]

Written answers

Minister for Finance

Revenue raised from carbon tax is remitted to the Exchequer and to date has not been hypothecated.  Hypothecation is not a feature of the Irish tax system in general as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time, constraining expenditure decisions and potentially distorting the allocation of resources, which can result in reduced value for money and sub-optimal outcomes.

Having said that, the additional revenues collected through the Carbon Tax and other sources of revenue can be used to fund measures such as the winter fuel allowance and the Better Energy Warmer Homes scheme to address fuel poverty issues.  

The Government is committed to tackling the issue of climate change and in advance of Budget 2019 I commissioned a study by the ESRI as a first step in better understanding the environmental, social and economic impact of increasing carbon tax rates. The ESRI is building upon its work in this regard by developing a multi annual model to better inform our decision making into the future. The Report of the Joint Oireachtas Committee on Climate Action published last week recommended that the Government should consider the impacts on low-income families of any future increases in Carbon Taxes and introduce specific policy measures to assist those who may not be in a position to immediately transition from fossil fuels. It is my intention to use the work of the ESRI, the Oireachtas Committee and the Climate Change Advisory Council to develop proposals for Budget 2020.

State Claims Agency Data

Questions (129)

Michael McGrath

Question:

129. Deputy Michael McGrath asked the Minister for Finance the amount the State Claims Agency paid in legal costs to solicitors representing plaintiffs in medical negligence claims in 2017 and 2018; the top ten payments made to named legal firms representing the agency and plaintiffs, respectively, in 2018; and if he will make a statement on the matter. [15323/19]

Written answers

Minister for Finance

I am informed by the State Claims Agency (SCA) that this information has been extracted from the National Incident Management System (NIMS) and that the figures provided are correct as of 29/03/2019.

Medical negligence claims are identified on NIMS through the Incident/Hazard Category of Clinical Care. This query relates to Clinical Care claims being managed by the SCA on behalf of the Health Service Executive.

Plaintiff legal costs relate to the payment made to the Plaintiff’s legal team i.e. Solicitors and Counsel and are also inclusive of expert fees which are discharged by the Plaintiff’s solicitor. These expert fees may relate to actuarial, engineering, medical, witness fees, etc.

Table 1 shows plaintiff legal costs made in relation to Clinical Care claims in 2017 & 2018. 

Transaction Date	Plaintiff Legal Costs
2017	€41,625,561
2018	€39,135,797
Grand Total	€80,761,358

The top 10 payments in Tables 2 & 3 are at a claims level and represent total payments made to a firm in respect of an individual claim.

Table 2 shows the top 10 Clinical Care claims by Agency solicitor fees paid in 2018.   

Payee	Amount Paid
Hayes Solicitors	€205,501
Hayes Solicitors	€140,549
Mason Hayes & Curran Solicitors	€136,925
Hayes Solicitors	€136,649
Hayes Solicitors	€132,401
A&L Goodbody	€128,144
Hayes Solicitors	€126,280
Mason Hayes & Curran Solicitors	€123,000
Ronan Daly Jermyn Solicitors	€121,908
Ronan Daly Jermyn Solicitors	€121,403

Table 3 shows the top 10 Clinical Care claims by Plaintiff legal costs paid in 2018.

Payee	Amount Paid
Augustus Cullen Law Solicitors	€766,592
Gallagher Shatter Solicitors	€685,123
O'Hanrahan Lally D'Alton Solicitors	€589,620
Daly Derham Donnelly Solicitors	€530,938
Augustus Cullen Law Solicitors	€521,583
Doyle & Company	€518,688
M.M. Halley & Son Solicitors	€518,466
Damien Tansey Solicitors	€514,156
Connellan Solicitors	€509,917
M.M Halley & Son Solicitors	€491,535

 

Revenue Commissioners Legal Cases

Questions (130)

Seán Fleming

Question:

130. Deputy Sean Fleming asked the Minister for Finance the number of court prosecutions initiated by the Revenue Commissioners in each of the years 2014 to 2018; the result of each of these court cases; the number and values of fines issued in each year; the value of fines collected each year; the value of fines still outstanding in respect of these prosecutions; the arrangements in place to collect the outstanding fines; if he will provide an age analysis of these outstanding fines; and if he will make a statement on the matter. [15339/19]

Written answers

Minister for Finance

I am advised by Revenue that the information requested by the Deputy in relation to prosecutions initiated by Revenue and fines imposed by the Courts is being compiled and will be forwarded to him as soon as possible.

I am advised also that the collection of fines imposed by the Courts is a matter for the Courts Service of Ireland.

Central Bank of Ireland Enforcement Actions

Questions (131)

Seán Fleming

Question:

131. Deputy Sean Fleming asked the Minister for Finance the number of court prosecutions initiated by the Central Bank in each of the years 2014 to 2018; the result of each of these court cases; the number and value of fines issued in each year; the value of fines collected each year; the value of fines still outstanding in respect of these prosecutions; the arrangements in place to collect the outstanding fines; if he will provide an age analysis of these outstanding fines; and if he will make a statement on the matter. [15340/19]

Written answers

Minister for Finance

As the Deputy will be aware the Central Bank’s primary enforcement mechanism for the imposition of monetary fines and other administrative sanctions for breach of financial services legislation is the Administrative Sanctions Procedure under Part IIIC of the Central Bank Act, 1942 (as amended) (the ASP). The ASP provides for sanctions to be imposed by way of an independent inquiry process or as part of early resolution of enforcement actions pre-inquiry in certain circumstances, as distinct from a court process. In response to this particular request, the following are the relevant statistics on enforcement actions under the ASP and the fines imposed in respect of them:

-	2014  €	2015  €	2016  €	2017  €	2018  €	Total 2014-2018 €
Fines Imposed	5,422,450	7,338,040	12,075,750	7,239,970	7,441,000	39,517,210
Fines Waived	0	5,105,000*	0	0	0	5,105,000

 In 2015, fines were waived in two cases: in the INBS case (€5m) as it would not have been in the public interest to pursue the collection of the fine in circumstances where the firm did not have any assets; and in the Tadhg Gunnell case (PCM Bloxham Stockbrokers) (€105k) as he had been adjudicated bankrupt four months prior to the settlement.

Further details of our settlements are available on the Central Bank website (link below). It is our policy to pursue payment of fines imposed, however, this is rarely necessary. Currently there is only one small fine outstanding in the relevant period and we continue to pursue this amount.

www.centralbank.ie/news-media/legal-notices/enforcement-actions. 

Departmental Communications

Questions (132)

Micheál Martin

Question:

132. Deputy Micheál Martin asked the Minister for Finance if his Department has undertaken procurement processes in relation to consultancy agencies, media or otherwise, to assist it with formulating or contributing to policy messaging on social media or videos in terms of his departmental strategies or policies; and if he will make a statement on the matter. [15389/19]

Written answers

Minister for Finance

In answer to the Deputy's question and following on from receipt of clarification from the Deputy’s office, my Department has not undertaken procurement processes in relation to consultancy agencies, media or otherwise, to assist with formulating or contributing to policy messaging on social media or videos on behalf of my Departmental strategies or policies in 2018 and to date in 2019.

The Deputy will be aware that the Office of Government Procurement (OGP) National Public Procurement Policy Framework sets out the procurement procedures to be followed by Government Departments and State Bodies under national and EU rules. It is Government policy that public bodies, where possible, should make use of OGP Framework agreements when undertaking any procurement processes.

I can advise the Deputy that my Department’s Compliance Officer also performs the role of Procurement Officer and provides guidance and support to staff on undertaking public procurement,  including promoting compliance with EU public procurement directives and regulations. My Department is committed to ensuring that procurement processes undertaken by its staff are carried out in conformity with all relevant national and EU legislation.

Departmental Communications

Questions (133)

Micheál Martin

Question:

133. Deputy Micheál Martin asked the Minister for Finance the way in which his departmental officials have been contributing to and taking part in Government of Ireland social media messages; the way in which they are co-ordinated in each of the policy areas of his Department; the Department that is the lead Department in relation to same; and if he will make a statement on the matter. [15406/19]

Written answers

Minister for Finance

I wish to advise the Deputy that co-ordination of Government of Ireland related social media and web content is led by the Merrionstreet team in the Government Information Service (GIS), which is part of the Department of An Taoiseach.  My Department is routinely requested by the GIS to provide information in relation to areas under the remit of my Department and to retweet specific social media messages. This is co-ordinated by officials in my Department’s Press Office.

Question No. 134 answered with Question No. 126.

Official Languages Act

Questions (135)

Dara Calleary

Question:

135. Deputy Dara Calleary asked the Minister for Finance if his Department has an operating language scheme in accordance with the Official Languages Act 2003; and the date when such a scheme was introduced. [15491/19]

Written answers

Minister for Finance

I wish to inform the Deputy that the Department of Finance has an operating language scheme in accordance with Section 11 of the Official Languages Act 2003.

The Department updated its Language Scheme, for the periods 2018 - 2021. This was implemented on 28th February 2018.

The Department supports staff in improving their standard of Irish through the provision of courses in Gaelchultúr. The staff are informed of the courses through OneLearning and induction training. At present four (4) staff members are attending a course in Gaelchultúr. Eleven (11) of the staff members have completed courses in Gaelchultúr. The Department encourages the study of the Irish language, to assist staff in providing a quality service with confidence.

There is no obligation on staff in the Department of Finance to provide services through the medium of Irish unless a request is received through Irish. However, the Department has created a panel of Irish speaking staff to provide this service when it is being sought. Five (5) people have offered their services to provide this service.

Financial Services and Pensions Ombudsman Administration

Questions (136)

Clare Daly

Question:

136. Deputy Clare Daly asked the Minister for Finance further to Parliamentary Question No. 237 of 26 March 2019, the number of staff he has approved; if they have taken up their positions; and if not, when the positions will be filled. [15507/19]

Written answers

Minister for Finance

I can confirm that I approved the recruitment of 35 additional staff to the Office of the Financial Services and Pensions Ombudsman at the following levels:

5 Assistant Principal

11 Higher Executive Officer

15 Executive Officer

4 Clerical Officer 

Obviously there is a process to be undertaken before these appointments are made. I understand that the Ombudsman intends commencing with the recruitment competitions for these positions immediately, and expects the first of these vacancies to be advertised in the coming weeks.