Written Answers Nos. 103-120
103. Deputy Michael McGrath asked the Minister for Finance when the stability programme update is due to be published; the prospect at this stage of no deal being reached by the EU and UK; the potential economic impacts of same; and if he will make a statement on the matter. [3752/20]
View answerIn accordance with the requirements of the European Semester, the Stability Programme Update (SPU) will be published and submitted to the European Commission by the end of April.
The EU mandate for the negotiations on the future relationship with the United Kingdom, agreed last week, sets out the EU’s clear position, based on the Political Declaration. A close, comprehensive set of arrangements underpinning a new EU-UK relationship is in all of our interests. Negotiations began between EU and UK negotiating teams this week. The work of the period ahead will be to achieve an ambitious and fair partnership that works for the benefit of all and that provides a new and strong foundation for this key relationship.
The Political Declaration envisages an ambitious trading relationship for goods on the basis of a Free Trade Agreement, but until there is greater clarity on the post-transition relationship there is likely to be continued uncertainty, particularly with respect to private sector investment.
My Department has been in contact with the ESRI on the economic impact of the Withdrawal Agreement and Political Declaration on the future relationship between the EU and the UK. I am satisfied that the existing analysis in the joint research by the Department and ESRI broadly captures the range of possible future relationships.
The analysis included a free trade agreement (of which there could be many forms), and a trading relationship under World Trade Organisation (WTO) frameworks. The impacts of these were modelled and estimated in the joint research which was published in March last year.
Under these scenarios, over the medium-term (i.e. 5 years) the level of GDP would be of the order of between 1.9 and 3.3 per cent lower, respectively, compared to a situation where the UK remains in the EU. The negative impacts will be most severely felt in those sectors with strong export ties to the UK market – such as the agri-food, manufacturing and tourism sectors and also SMEs generally – along with their suppliers. The impact will be particularly noticeable outside the main cities.
My Department will continue to monitor developments with respect to the future relationship between the EU and the UK, and will update the macroeconomic and fiscal projections to take account of any developments over the next month or so. These will be published in the SPU in April.
106. Deputy Bernard J. Durkan asked the Minister for Finance the status of employment here in the case of a person (details supplied); and if he will make a statement on the matter. [3811/20]
View answerA single person in employment in the State is entitled to an annual Personal Tax Credit of €1,650 (€3,300 for married persons or civil partners) and an annual maximum Employee Tax Credit of €1,650. Persons employed in certain trades or professions can also receive an annual ‘flat rate expenses’ deduction. These entitlements reduce the amount of tax that is liable to be paid on a person’s income.
Revenue have advised that the person in question has a current employment on record and is in receipt of the appropriate tax credits, deductions and rate band entitlements based on the information provided. Revenue has also confirmed that the person is paying the correct amounts of tax and Universal Social Charge (USC) based on his recorded status.
If any person has concerns that their tax credit or rate band entitlements are not correctly reflected, they should contact Revenue’s National PAYE Helpline at telephone number 01-7383636 to discuss the matter. Alternatively, the person can claim any additional entitlements through Revenue’s online MyAccount service, available at: www.ros.ie/myaccount-web/sign_in.html?execution=e1s1.
107. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the economy continues to perform satisfactorily notwithstanding global or regional pressures; the extent of corrective measures; and if he will make a statement on the matter. [3822/20]
View answerGrowth in the first three quarters of 2019 remained strong, with GDP up 5.9 percent in year-on-year terms over that period, with the full year estimates due for release by the CSO very shortly. Of course, in recent years, GDP has become distorted by the activities of a small number of large multinational firms that often reflect a number of exceptional factors which have limited impact on actual activity in the domestic economy. However a range of domestic measures, such as modified domestic demand and household consumption, have also been growing robustly. Indeed, the best barometer of how well our economy is performing is the labour market where we currently have record employment levels.
Looking forward, economic growth is expected to continue but at a more moderate pace. However there are a number of downside risks to this outlook, perhaps the most pressing at the current moment, is the potential economic implications of the outbreak and spread of the coronavirus. Furthermore there is ongoing uncertainty surrounding the precise nature of the future trading relationship between the EU and the UK. Any further disruption to trade or a further slowdown in global growth would have a disproportionate impact on the Irish economy.
The best way we can mitigate against these risks is through prudent budgetary policy, careful management of the public finances and by focusing on competitiveness-oriented policies. Running budgetary surpluses in good times is the best way of reducing risk our economy and our public finances from the shocks that are likely.
108. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy remains competitive in both the European and global context; and if he will make a statement on the matter. [3823/20]
View answerGrowth in the first three quarters of 2019 remained strong, with GDP up 5.9 per cent year-on-year over that period, with the full year estimates for 2019 due for release by the CSO very shortly.
Of course, in recent years, GDP has become distorted by the activities of a small number of large multinational firms that often reflect a number of exceptional factors which have limited impact on actual activity in the domestic economy. However a range of domestic measures, such as modified domestic demand and household consumption, have also been growing robustly. Indeed, the best barometer of how well our economy is performing is the labour market where we currently have record employment levels.
The strength of our economy, in part, reflects the important steps we have taken to improve our competitiveness. The 2019 IMD World Competitiveness Yearbook recently ranked Ireland as the 2nd most competitive country in the EU and the 7th most competitive country in the world. In addition, the Central Bank’s real harmonised competitiveness indicator has improved by approximately 25 per cent since 2008. Importantly, the robust economic growth in recent years has not yet given rise to significant inflationary pressures. In 2019, average annual inflation was just 0.9 per cent.
On wage developments, average weekly earnings increased by 3.5 per cent year-on-year in 2019. The rise in household incomes is a welcome development, however it needs to be monitored closely as a significant acceleration in wages would undermine Ireland’s competitiveness relative to other European countries.
Despite the positive outlook for our economy, the risks over the coming years are numerous and primarily external in nature. Perhaps the most pressing at the current moment is the potential economic implications of the outbreak and spread of the coronavirus. Furthermore there is ongoing uncertainty surrounding the precise nature of the future trading relationship between the EU and the UK. Any further disruption to trade or a further slowdown in global growth would have a disproportionate impact on the Irish economy.
The best way we can mitigate against these risks is through prudent budgetary policy, careful management of the public finances and by focusing on competitiveness-oriented policies.
109. Deputy Éamon Ó Cuív asked the Minister for Finance when the current tax credit for individuals was set at €1,650 and the employment tax credit was set at €1,650; the cumulative rate of inflation since that date; and if he will make a statement on the matter. [3867/20]
View answerThe value of both the personal and employee tax credits has been set at €1,650 since the 2011 tax year following the implementation of Finance Act 2011.
The cumulative rate of consumer price inflation (based on the Harmonised Index of Consumer Price measure) from 2011 to end 2019 was 5.2 per cent. Over the same period, between 2011 and 2018, the level of (non-agricultural) hourly earnings as measured by CSO Earnings and Labour Costs survey grew by 12.3 per cent.
No Government in this jurisdiction has followed a policy of strict indexation of tax bands and/or tax credits, as it would undermine the flexibility to adapt spending as necessary to the level of resources available to the Government in any given Budget. It would also restrict the ability of the Government to target resources where the need is greatest.
General increases to tax credits result in an increase in level of income that is effectively exempt from income tax. It is estimated that in 2020, 28% of taxpayers will be exempt from income tax, including USC. It may not be prudent to increase this number further through increases in tax credits that would narrow the income tax base. During the financial crisis, our income tax base narrowed to the point where 45% of potential taxpayers were exempt from income tax. This was unsustainable and placed a disproportionate burden on those who were within the tax net to provide the tax revenues needed for public services and social supports.
110. Deputy Éamon Ó Cuív asked the Minister for Finance the progress made to date at EU level on a consolidated corporate tax rate for the EU; the implications for Ireland of the introduction of such a policy; and if he will make a statement on the matter. [3868/20]
View answerI assume the Deputy is referring to the European Commission's proposals for a Common Consolidated Corporate Tax Base (CCCTB) which were published in October 2016. The proposals have been under discussion at Council working party level since that time. Ireland is actively involved in these ongoing technical discussions.
The re-launched CCCTB is split into two separate Directives – a Directive for a Common Corporate Tax Base (CCTB) and separately a second Directive for a Common Consolidated Corporate Tax Base (CCCTB). The Common Corporate Tax Base proposal is being discussed first and consolidation will only be discussed after the file is agreed.
By its nature, the Common Consolidated Corporate Tax Base is a complex and detailed proposal. Member States are discussing and debating the various aspects of the proposal in the relevant tax working parties. These discussions are progressing but much more technical consideration is needed.
The views of Member State delegations continue to diverge on a range of technical issues under discussion in respect of the proposal. Significant technical work remains to be carried out. The Croatian Presidency is currently continuing the approach of the recent Finnish Presidency and holding meetings on specific technical issues within the proposal.
111. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if he will address a matter (details supplied) regarding flooding on Fenit Island; and if he will make a statement on the matter. [2589/20]
View answerI am advised that, in the first instance, the management of problems of flooding and coastal protection in the area indicated remains a matter for Kerry County Council. The Council may carry out flooding and coastal protection works using its own resources, but where necessary, the Council may also put forward proposals to the relevant central Government Departments, including the OPW, for funding of appropriate measures depending on the infrastructure or assets under threat.
It is, however, open to Kerry County Council to apply for funding under the Office of Public Works’ (OPW) Minor Flood Mitigation Works and Coastal Protection Scheme, under which applications for funding from Local Authorities are considered for measures costing not more than €750,000 in each instance. Funding of up to 90% of the cost is available for projects that meet the eligibility criteria, including a requirement that the proposed measures are cost beneficial.
There is currently no application on hand for the location mentioned in the Deputy’s question.
112. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the details of the Civil Service mobility scheme; the number of persons on the list for transfer to other locations in Leinster; the number of persons on the list; the number who have been transferred from Dublin in each of the past three years; and if he will make a statement on the matter. [2682/20]
View answerAs the Deputy is aware, the Civil Service Mobility scheme which comes under the remit of the Department of Public Expenditure and Reform, and is administered through HR Shared Services, National Shared Services Office, offers an opportunity for staff members to apply for mobility through an open and transparent system. The establishment of the scheme fulfils one of the requirements of Action 15 of the Civil Service Renewal Plan; and Action 14 of the People Strategy for the Civil Service.
The scheme is being introduced on a phased basis. Phase 1 of the scheme went live in September 2018. This phase is for the general Civil Service grades of Clerical Officer (CO) and Executive Officer (EO) to apply for mobility between and within 46 zones. The location choices for the scheme are based on mobility zones (46 zones) rather than by county or province.
Plans are on track to extend the scheme to include the grades of Higher Executive Officer (HEO), Administrative Officer (AO) in Q.2 2020, with the Assistant Principal to be included at a later date. When this process is complete, mobility will be in place for all general Civil Service grades from Clerical Officer up to Assistant Secretary.
There has been a high level of interest in Phase 1 of the scheme (CO and EO) with 5,059 staff members (24% of the total participating grades) applying for a move through the scheme across the country with:
- 1097 of the applicants applying to move out of Zone 46 (Dublin) to a regional location – representing 13% of the staff in the participating grades in Zone 46;
- Of these 863 applied to move to a regional location within Leinster.
517 moves have taken place since the scheme went live with other moves currently in progress, with:
- 58 moving out of zone 46 to a regional location;
- Of these 42 moved to a regional location within Leinster.
113. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the status and completion date for construction works at the new Bailieborough Garda station; and if he will make a statement on the matter. [2861/20]
View answerThe pre-qualification procedure for the main contractor is ongoing. Pre-qualification of the reserved specialists will begin shortly. It is expected that tenders will issue for the construction work during this summer with a contract awarded before the end of the year. Construction will take about 18 months.
114. Deputy Darren O'Rourke asked the Minister for Public Expenditure and Reform if the new cell windows being installed in a Garda station in County Meath meet the required standards; and if he will make a statement on the matter. [3272/20]
View answerAll Garda Cell windows are to the required EN 14019 standard. There are two approved cell window suppliers. The works to the cell windows in the Co. Meath Garda Station are part of the OPW cell upgrade programme.
115. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the status of the transfer of title of a property to the State (details supplied); and if he will make a statement on the matter. [2620/20]
View answerWhile property acquisition relative to the National Monuments estate is a matter for the Department of Culture Heritage and the Gaeltacht, the Office of Public Works understands that there are no proposals being actively pursued for this property to be acquired.
116. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the number of staff employed by the Office of Public Works at a location (details supplied); and if he will make a statement on the matter. [2635/20]
View answerAs of 28th February 2020, the Office of Public Works employs two staff members in Portlaoise, Co. Laois.
117. Deputy Fergus O'Dowd asked the Minister for Public Expenditure and Reform his plans for future coastal works required at Mornington, Bettystown and Laytown; and if he will make a statement on the matter. [2779/20]
View answerI am advised that, in the first instance, the management of problems of coastal protection in the area indicated remains a matter for Meath County Council. The Council may carry out coastal protection works using its own resources, but where necessary, the Council may also put forward proposals to the relevant central Government Departments, including the OPW, for funding of appropriate measures depending on the infrastructure or assets under threat.
Following the severe storms of Winter 2013/2014 and on foot of submissions made by the Local Authority, total funding of €126,792 was allocated by the OPW to Meath County Council for the repair of damaged coastal protection infrastructure. The Council has confirmed that the works at Laytown, including the replacement of gabions/rock armour revetment sea defence systems were carried out using this funding. This, however, was a once off allocation and no further funding is available under this stream.
It is, however, open to Meath County Council to apply for funding under the Office of Public Works’ (OPW) Minor Flood Mitigation Works and Coastal Protection Scheme, under which applications for funding from Local Authorities are considered for measures costing not more than €750,000 in each instance. Funding of up to 90% of the cost is available for projects that meet the eligibility criteria, including a requirement that the proposed measures are cost beneficial.
118. Deputy Fergus O'Dowd asked the Minister for Public Expenditure and Reform the applications received for funding from Louth County Council or another public body, including Fáilte Ireland, in respect of maintenance or other development works to St. Laurence’s Gate, Drogheda, the Old Abbey, Drogheda, Drogheda town walls and so on; the plans in place which will see the OPW develop a heritage or cultural site or centre in Drogheda; and if he will make a statement on the matter. [2784/20]
View answerThe Office of Public Works has received no application for funding from Louth Co. Council in respect of the St. Laurence's Gate, which is a National Monument in OPW's care. Any funds required for maintenance of this structure are provided within the subvention to the OPW for National Monuments and the Local Authority has no function in the matter.
OPW has no role in relation to the other heritage structures mentioned and is not responsible for their maintenance or visitor development. In terms of the development of St. Laurence's Gate as a visitor attraction, once the serious structural issues with the Monument are addressed, the intention is to make the structure accessible to visitors. Access to the site is currently provided during special events such as Heritage Week, local festivals, etc. and it is hoped, in time, this can be expanded. Given that a visitor proposal for St. Laurence's Gate is not in sight in the short term, the question of an application for funding to Failte Ireland does not arise.
119. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if the case of a person (details supplied) will be addressed; and if he will make a statement on the matter. [2807/20]
View answerThe Office of Public Works is liaising with other statutory bodies including Kerry County Council in relation to this matter.
120. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the plans by the OPW to purchase property for Garda stations in counties Cavan, Monaghan or Meath; the stages in negotiation for each; and if he will make a statement on the matter. [2862/20]
View answerThe Office of Public Works has no current requirement to purchase property for Garda Stations in the counties referred to.
