Written Answers Nos. 41-60
42. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Foreign Affairs and Trade if the issue of an EU wide ban on the importation of goods from occupied territories has been raised with his European counterparts in view of the support for the Control of Economic Activity (Occupied Territories) Bill 2018 in Dáil Éireann; and if he will make a statement on the matter. [6981/20]
View answerIreland has a very clear position on Israeli settlements in the occupied Palestinian Territory and the Golan Heights. They are illegal under international law, notably being contrary to the Fourth Geneva Convention, and actively undermine the prospects for a two-state solution.
As I have said many times in the Dáil, the regulation of international trade, including in relation to settlement goods, is a matter of exclusive EU competence. The Occupied Territories Bill asks the Government to do something which is not legally in its power. The European Commission confirmed to the Select Committee on Foreign Affairs, Trade and Defence in June of last year that "...the EU has exclusive competence on the common commercial policy, and that as a customs union, the EU applies common arrangements for imports of goods from third countries uniformly across the Union. In principle, only the EU can decide to prohibit the importation of goods and services and not the Member States individually."
To introduce such an EU-wide ban on the importation of settlement goods would require consensus among EU Member States, and the political will for such a policy does not exist. For that reason, I have focused my energies at EU level on other aspects of the Israel-Palestine issue, in order to ensure the best possible policy outcomes.
As it stands, however, EU law does already make a meaningful distinction between Israel, and settlements in occupied territory. This distinction has important practical effects. Since settlements are not part of Israel, the EU-Israel Association Agreement does not apply to them. This means that different tariffs apply to goods from settlements, and settlements are not eligible for participation in EU-Israel programmes.
Ireland has been vigilant to ensure that EU law in this regard is upheld. For example, in 2018, Ireland, as an interested Member State, lodged observations in a case which was referred to the Court of Justice of the European Union, challenging the implementation of EU rules on the labelling of foodstuffs originating from settlements in the occupied Palestinian territory. The court’s judgment, issued on 12 November 2019, confirmed that foodstuffs originating in territories occupied by the State of Israel, must bear the indication of their territory of origin, and when these products originate from an Israeli settlement, this must also be made clear on the label. Clear and non-misleading indication of origin for certain goods is an essential part of the EU's consumer policy.
EU law and guidelines on goods from settlements in the occupied Palestinian territory clearly differentiate between settlements on the one hand, and Israel, on the other. As such, they are an important part of the EU constribution to the implmentation of UN Security Council Resolution 2334. Ireland will maintain its vigilance to ensure full implementation of these laws and guidelines.
43. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Foreign Affairs and Trade if Ireland will seek observer member status of the Arctic Council; and if he will make a statement on the matter. [6990/20]
View answerIn recent years, the Arctic has become a region of increasing geopolitical importance. The growing environmental and strategic importance of the Arctic has very significant impact, with melting ice having far-reaching implications for climate change and maritime access across the region.
My Department has been undertaking a mapping exercise to assess Ireland’s engagement with the Arctic and related issues across a range of areas and to determine the merits of a closer engagement with the region.
It is clear there is a rationale for enhancing Ireland’s engagement on the Arctic across the range of established fora, including the potential to submit an application for observer status with the Arctic Council. It is clear that any application would have to be underpinned by a very strong case detailing how Ireland could contribute to the Council’s work. Additionally, any application and possible eventual participation as an observer at the Council would require a cross-Government commitment to ensure that Ireland could play an active and effective role.
A decision on whether to apply formally for observer status with the Arctic Council is a matter for the Government and a proposal is expected to be submitted for consideration by the new Government in due course.
44. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Foreign Affairs and Trade the amount spent on external consultants by his Department in 2019; the average hourly rate; if caps or limits on such spending are in place; the way in which conflicts of interest are managed; and if he will make a statement on the matter. [7282/20]
View answerThe Department of Foreign Affairs and Trade is responsible for two Votes - Vote 27 (International Co-operation) and Vote 28 (Foreign Affairs and Trade).
This Department spent €415,108 on external consultants in 2019 across both Votes.
The Department seeks to minimise expenditure on consultants. It commissions external expertise in line with national and EU procurement rules in areas where highly specialised skills are not available, in particular where independent evaluation of projects is required. During the course of their engagement, these consultants and experts may prepare reports and other analysis or documentation for the Department.
In-depth analysis of issues by external experts has informed, and continues to inform, the Department’s policies, allowing for a more targeted use of resources and greater accountability in the allocation of budgets.
All consultancy procurement in the Department of Foreign Affairs and Trade is carried out in accordance with relevant procurement legislation and EU Directives. This competitive tender process establishes the cost of the work which acts as the limit for the consultancy work. As a public body, the Department complies with the procedures for public procurement laid down in the Public Procurement Guidelines for Goods and Services published by the Office of Government Procurement (OGP) in 2019. Consultancy projects are tendered for on the basis of completion of an entire piece of work and not on an hourly basis. Therefore the Department does not mainatain details of the various hourly rates. The Department maintains strict budgetary oversight of all consultancies to ensure that all costs are in line with the relevant tender.
The Department acts appropriately to prevent, identify and remedy conflicts of interest in the conduct of a procurement procedure to avoid any distortion of competition and to ensure equal treatment of consultancy tenders. The conflict of interest procedure involves ascertaining if Evaluation Committee members have any actual, potential or perceived conflicts of interest in participating in the tender evaluation process. Every Committee member is required to complete and sign a conflict of interest declaration in advance of the evaluation process. When a conflict of interest has been declared in advance of evaluation, the nature of the conflict and any deliberations on managing the conflict together with the resolution is recorded in the procurement file.
A small number of consultancies are engaged directly by our Missions abroad from time to time and in some instances they prepare technical reports relating to Ireland’s overseas development aid programme.
45. Deputy Anne Rabbitte asked the Minister for Finance if childcare employees who are due to return to work following maternity leave are eligible for a subsidy under the temporary wage subsidy scheme [5560/20]
View answer64. Deputy Pádraig O'Sullivan asked the Minister for Finance if his attention has been drawn to the fact that women returning from maternity leave cannot be included in the wage subsidy scheme due to the fact they were not on the payroll in January or February; if measures will be taken to address this; and if he will make a statement on the matter. [5650/20]
View answer97. Deputy Pa Daly asked the Minister for Finance his plans to ensure that parents on maternity leave or parental leave can avail of and be included in the wage subsidy scheme upon their return to work (details supplied). [6235/20]
View answer120. Deputy Michael McGrath asked the Minister for Finance if the temporary wage subsidy scheme will be extended to cater for women on maternity leave specifically those who were not on the payroll in February 2020 due to their maternity leave; if so, if such an extension will require primary legislation; and if he will make a statement on the matter. [6672/20]
View answer129. Deputy Mary Lou McDonald asked the Minister for Finance if the Revenue Commissioners will be instructed to administer the temporary wage subsidy scheme in accordance with the maternity protections provided by the Employment Equality Acts. [6857/20]
View answerI propose to take Questions Nos. 45, 64, 97, 120 and 129 together.
The Temporary Wage Subsidy Scheme (TWSS) is a temporary emergency measure to deal with the impact of the Covid-19 pandemic on the economy, intended to maximise staff retention and firm viability by maintaining the link between the employer and employee insofar as is possible through this truly exceptional period. In that regard it is noted that as of 14 May, over 54,100 employers and over 464,400 employees have thus far benefited from the measure.
It ultimately gives a sum to employers to cover a portion of their wage bill in circumstances where the employer’s business has been negatively impacted by the restrictions that have had to be introduced to stop the spread of the COVID-19 virus. The sum the employer receives is based on the employees who were on their payroll on 29 February 2020, the net salary such employees received in January and February 2020, as well as the extent to which the employer remains able to continue to discharge their legal obligation to pay their employees’ salaries.
The TWSS is built upon historic PAYE returns made to Revenue. One of the core principles of the scheme that is necessary to prevent abuse is the requirement that the employees for which a claim is submitted must be on the payroll of the employer as at 29 February 2020. Thus, where an individual commenced a new employment after 29 February 2020, or returned to the payroll of his or her employer after that date following a period of unpaid leave, whether maternity related or otherwise, that salary cannot be included in the calculation of the sum that is available to the employer under the TWSS.
The 29 February payroll decision has consequences for many groups, however, the scheme is being administered in a manner that is fully compliant with all relevant legislation and no discriminatory treatment of workers arises.
Further, the position in relation to the TWSS does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay. The question of an individual’s employment entitlements following their resumption of work after a period of leave, and the question of what wages an employer may or may not be in a position to pay such an employee are matters between the employee and the employer – and the entire period of pregnancy and maternity leave is a special protected period under the law.
It is understood that although the employer may not be able to claim the TWSS for a person who has not been on the payroll on 29 February but is entitled to return to work after this date, they remain obliged to honour their obligations as an employer as the full suite of employment rights legislation continues to apply in relation to all employees and their employers for the duration of the COVID-19 crisis and beyond.
As regards the operation of the TWSS, I am aware of the matter that has been raised by the Deputies and have instructed officials to re-examine whether such workers may be accommodated at this time within the scheme.
46. Deputy Anne Rabbitte asked the Minister for Finance if crèches that filed their P30 form and other documentation before 1 April 2020 are eligible for full payment under the temporary wage subsidy scheme. [5564/20]
View answerThe Government’s priority in so far as the Temporary Wages Subsidy Scheme (TWSS) is concerned was and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that becomes possible. The scheme is available to eligible employers across all sectors, excluding the public service and non-commercial semi-state sector, this includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The main eligibility criteria for the scheme are that:
- the business is suffering significant negative economic impact due to the pandemic;
- the employees were on the payroll at 29 February 2020; and,
- the February 2020 payroll submissions were submitted to Revenue before 15 March 2020.
I have been advised by Revenue that following a review of cases since the TWSS commenced, it became apparent that a number of employers have been unable to access the scheme because they failed the 15 March 2020 rule, but had qualified under all other conditions of the scheme and were otherwise tax compliant. Given the purpose of the scheme, Revenue decided, under its care and management provisions, to allow such employers access the scheme provided:
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020
- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and
- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.
The TWSS builds on payroll data returned to Revenue through its real-time PAYE system. Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme are payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and are not retrospective.
Eligible employers can participate in the scheme in respect of any eligible employees on their payroll at 29 February 2020, including rehired staff who had been temporarily laid off after that date. Where an employee previously laid off has been re-hired, the employee will qualify for the scheme once their claim for social welfare benefit (Pandemic Unemployment Payment/Jobseekers Benefit) is ceased. Eligibility for the scheme can be satisfied by an employer once they meet the relevant criteria, which can be at any point in time during the scheme’s duration.
Finally, the Deputy referred to P30 forms. Such forms are no longer in use following the introduction of PAYE Modernisation. Section 985G of the Taxes Consolidation Act 1997 sets out that Revenue issue a monthly statement to the employer outlining a summary of the payroll submissions made by the employer for the month. If no corrective action is taken by the employer, this statement is deemed to be a monthly return by the employer made on the return due date.
47. Deputy Cathal Crowe asked the Minister for Finance if homes built for a number of years but never lived in or finished can be included in the help to buy scheme for first-time buyers; and if not, the reason therefor. [5710/20]
View answerThe legislation governing HTB is set out in section 477C of the Taxes Consolidation Act 1997.
The Help to Buy scheme (HTB) is an income tax incentive designed to assist first-time purchasers with a deposit to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
In addition to requiring that the new property is occupied as the sole or main residence of a first time purchaser, the legislation also defines a ‘qualifying residence’ for the purposes of the scheme; it must be a new building which was not, at any time, used or suitable for use as a dwelling. Therefore, if the property was at any time suitable for use as a dwelling it would not qualify for the HTB incentive.
I am advised by Revenue that where there is uncertainty regarding whether a property was previously suitable for use as a dwelling, first time buyers intending to undertake such purchases should contact Revenue via My Enquiries and they will consider the application on a case by case basis. In order for Revenue to make an assessment on whether a dwelling was unfinished and not suitable for use as a dwelling, they would require sufficient evidence from the builder, engineer or other professionals working on the project, about the condition of the dwelling which made it uninhabitable/unfinished. If there is any other information (photos, etc.) that’s relevant in helping Revenue conclude that the property meets the criteria in the legislation, this should also be included.
48. Deputy Sean Fleming asked the Minister for Finance his plans and proposals to assist businesses especially in the tourism sector in respect of re-examining the VAT rate for the tourism area; and if he will make a statement on the matter. [5719/20]
View answerThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes - and it will pass – our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
49. Deputy Michael McGrath asked the Minister for Finance his plans to consider allowing certain pension scheme members access to additional voluntary contributions as a means of stimulating the economy; and if he will make a statement on the matter. [5721/20]
View answerIn relation to the Deputy’s proposal to allow people access a portion of their pension fund before retirement, the long established policy of providing tax relief for pension contributions is to encourage saving by employers, employees and the self-employed towards their retirement income. A repayment of contributions is only permitted in highly limited circumstances, for example due to ill-health, and as such, this would be subject to income tax.
The policy rationale underpinning this is the State provides generous tax relief on both pension contributions and fund growth to ensure that people have sufficient savings to fund their regular costs and expenses during their retirement. However, on actual drawdown a pension is subject to tax at the individual’s marginal tax rate. In the event of any early encashment of a pension fund the tax relief received must be clawed back. It should also be noted that any refund of pension contributions is governed by the terms of the specific scheme or product.
As is the case with all matters of policy, while they are monitored on a continuous basis, I do not have any plan at this time to revise these pension arrangements.
It is important to point out that a very significant and comprehensive package of measures has already been put in place to assist those who have suffered a loss of income arising from the COVID-19 crisis. This includes the Temporary Wage Subsidy Scheme (TWSS), the Pandemic Unemployment Payment and bank-related forbearance measures.
Revenue data from 14 May 2020 show there are over 53,900 employers registered with Revenue and more than 464,400 employees had received at least one payment under TWSS. The data are available on Revenue’s website at the link: www.revenue.ie/en/corporate/documents/statistics/registrations/wage-subsidy-scheme-statistics-14-may-2020.pdf.
Data from the Department of Employment Affairs & Social Protection show there were 584,600 people in receipt of a Pandemic Unemployment Payment on 18 May 2020. The data are available at the link: www.gov.ie/pdf/?file=https://assets.gov.ie/74440/d2d234214f994fe6966afdb28eed1e55.pdf#page=1.
50. Deputy Fergus O'Dowd asked the Minister for Finance the mechanism relating to VRT payments on vehicles that were purchased before the closure of the NCT/VRT offices in order to be in a position to drive and insure the car and comply with the requirements of the Revenue Commissioners; if an estimated billing process will be put in place to be paid in the interim in order to access a registration here to insure and tax the vehicle in accordance with regulations; and if he will make a statement on the matter. [5733/20]
View answer51. Deputy Fergus O'Dowd asked the Minister for Finance the position from an enforcement stance relating to VRT payments on United Kingdom vehicles that were purchased before the closure of the NCT/VRT offices, in order to be in a position to drive and insure the car and comply with the Revenue Commissioners and Road Acts requirements; if there is a waiver in place to allow citizens to drive imported UK vehicles until such time that the VRT offices reopen and Irish registrations can be issued whilst complying with Irish law; and if he will make a statement on the matter. [5738/20]
View answerI propose to take Questions Nos. 50 and 51 together.
I am informed by Revenue that used vehicles brought into the State from the UK or elsewhere are required to be registered within 30 days in normal circumstances. However, as National Car Testing Service (NCTS) Centres which perform the registration service are closed at present as a result of the Covid-19 crisis, this requirement is not being enforced by Revenue. Owners of such vehicles will not be required to reregister the vehicles until the VRT service operated by the NCTS Centres has recommenced.
I am advised by Revenue that it is not possible to put in place an estimated billing process as both the vehicle and the supporting documentation are legally required to be inspected prior to registration. Any such initiative in respect of the payment of the tax would require a change to primary legislation and significant changes to IT and administrative structures. Subject to the Government’s road map, it is likely that the NCTS Centres will have recommenced a scaled back VRT service by the end of June and any such changes would be disproportionate at this point in time.
I am further informed by Revenue that registration on the Revenue Online Service of new cars and cars that have been pre-inspected has not been interrupted.
The question of insurance is a matter for the insurance industry and that of road tax for the Department of Transport, Tourism and Sport.
52. Deputy James Lawless asked the Minister for Finance the schedule for the reopening of the VRT service; and if he will make a statement on the matter. [5874/20]
View answerI am informed by the Revenue Commissioners that, in respect of registrations and examinations carried out in the National Car Testing Service Centres, a resumption proposal has been submitted by the Road Safety Authority to the Department of Transport, Tourism and Sport that would see a limited number of Centres resume on 8 June 2020 for NCT testing. If this resumption proposal is accepted then the VRT service would recommence on a scaled back basis from 29 June 2020. As details become available they will be updated on the Revenue website.
I am further informed by Revenue that registration on the Revenue Online Service of new cars and cars that have been pre-inspected has not been interrupted.
53. Deputy Carol Nolan asked the Minister for Finance his views on amending and revising down the VAT rate applicable to the hotel and tourism sector; and if he will make a statement on the matter. [5885/20]
View answerThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes - and it will pass – our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
54. Deputy Noel Grealish asked the Minister for Finance if further engagement has been or is planned to be taken with the insurance industry regarding insurance cover for businesses required to close during the Covid-19 emergency; and if he will make a statement on the matter. [5922/20]
View answer55. Deputy Robert Troy asked the Minister for Finance if he has met with the CEOs of insurance companies to deal with their reluctance to pay business interruption cover; and if so, the progress made on same. [6134/20]
View answer134. Deputy Cian O'Callaghan asked the Minister for Finance the measures taken to ensure that insurance companies will cover Covid-19 related business interruption claims; and if he will make a statement on the matter. [6974/20]
View answerI propose to take Questions Nos. 54, 55 and 134 together.
I am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, in terms of honouring business interruption claims and also with regard to whether forbearance and other flexible measures are being offered to them. In this regard, I held a teleconference meeting with a representative from the Alliance for Insurance Reform on 1 April to hear the concerns of their membership.
I, and my officials, have been engaging with the insurance sector in an effort to get some much needed certainty for business policyholders. On business interruption claims, I wrote to Insurance Ireland on the 27th of March and indicated amongst other things the following:
(i) insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage.
(ii) that where a claim can be made because a business has closed, as a result of a Government direction due to contagious or infectious disease, that the recent Government advice to close a business in the context of COVID-19 should be treated as a direction.
Insurance Ireland, on behalf of its membership, responded on the 3rd of April and stated that it accepted both of my points. It did however indicate that each insurance policy is different and there may well be other factors which lead to the adjudication of whether a business interruption claim is valid or not, other than Government advice to close.
Following on from my correspondence, I held a teleconference with Insurance Ireland, on the 17th of April, where I reiterated that some insurers, by adopting a “blanket” rejection of all business interruption claims, were doing the industry significant reputational damage and were not treating their customers fairly. I also discussed a range of other insurance related matters on the teleconference, including motor insurance premium refunds, and a statement outlining the nature of my engagement with Insurance Ireland was issued by the Department and can be found here: https://www.gov.ie/en/press-release/edabf2-minister-donohoe-emphasises-his-concerns-to-insurance-ireland-regard/
In addition, the Deputies should note that the Central Bank wrote to the CEOs of major insurers outlining its expectations of them in this crisis from a consumer protection perspective. The key messages that the Bank conveyed are as follows:
- Insurers must put forward consumer-focussed solutions on policy payment breaks, rebates and claims.
- While most insurance policies are clear, if there is a doubt about the meaning of a term, the interpretation most favourable to the consumer should prevail.
- The Central Bank expects the CEOs of Irish authorised firms to take responsibility for the oversight of how their firm is managing determinations of whether claims are covered or not in the context of COVID-19.
I also understand that the Central Bank is continuing to engage with the non-life insurance industry on these matters and will continue to closely monitor the situation to ensure that firms are meeting the expectations as previously set out.
In conclusion on this issue, I have already set out to the House that I strongly believe that insurers should treat their customers honestly, fairly and professionally and honour those elements of the policies covered including business interruption claims in line with the Central Bank’s Consumer Protection Code. The Deputies should note however that neither I, as Minister for Finance, nor the Central Bank have any role in adjudicating on such matters. If there continues to be a disagreement between an insurer and a policyholder, then the appropriate channels for resolving them must be followed i.e. use of the Financial Services and Pensions Ombudsman or litigation.
With regard to the other issue raised on insurance cover for businesses required to close during the Covid-19 emergency, I and my officials have also had extensive engagements with the industry. In that regard, it should be noted that in my letter of the 27th of March, I also requested that Insurance Ireland press its members to provide some reliefs to their customers to alleviate the pressures brought on as a result of the current situation and for insurers to have a common approach on how they are supporting their business customers in this difficult time. The outcome of this engagement is an agreement that I announced on the 10th of April whereby most of the key insurers in the Irish market - namely Allianz, AIG, AXA, FBD, Liberty Insurance, RSA, Travelers Insurance and Zurich - will apply the following common measures which will be available to their business customers:
Forbearance
- Insurers will reduce premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer Liability/ Public Liability and Commercial Motor.
- Insurers will allow up to 28 days after renewal for payment. Business Premises
- Insurers will maintain cover for unoccupied commercial buildings/ premises not in use due to COVID-19 restriction (for a maximum of 90 days). Appropriate supervision and security of the premises is required.
- Insurers will support requests for a change of property use during the crisis.
It is important that businesses contact their insurers or brokers to avail of these offers.
In terms of this agreement, I believe that it should provide some assistance to businesses. I have asked Insurance Ireland to put in place a mechanism, which will provide proof of delivery on these commitments. My view, is that it is in Insurance Ireland’s interest to put in place a credible tracking mechanism, as they need to be able to demonstrate that the 10 April agreement is being implemented properly. I have also asked my officials intend to monitor the implementation of the agreement, both through the activity tracker, as well as through the regular engagement with other relevant stakeholders such as the Alliance for Insurance Reform.
Finally, with regard to any further engagement with the insurance industry, it should be noted that my officials are in regular contact with Insurance Ireland and the Central Bank and keep me updated on developments. For now, while I don't have any meeting arranged with individual insurance company CEOs, I am keeping that issue under review as matters develop.
56. Deputy Niall Collins asked the Minister for Finance if an application will be reviewed and approved (details supplied); and if he will make a statement on the matter. [6153/20]
View answerHBFI was established, in January 2019, to increase the availability of funding for the residential development market. At the time of launch, HBFI offered a Senior Debt funding product for developments of 10 units and above. On 10 May 2020, HBFI released a number of new products, one of which provides funding for smaller commercially viable residential projects, of 5 units or more. Details on all of HBFI's products can be found on their website at www.hbfi.ie/.
While I am advised that HBFI are very happy to discuss and consider the funding of all residential developments, it should be noted that the minimum number of units for which HBFI currently provides funding is 5 or more.
57. Deputy Bríd Smith asked the Minister for Finance the number of workers on the WSS whose earnings are below €205 and €350, respectively. [6156/20]
View answer84. Deputy Bríd Smith asked the Minister for Finance the number of employers, registered for tax purposes as offshore, that have availed of the wage subsidy scheme; and the cost of the scheme in these cases. [5960/20]
View answer85. Deputy Bríd Smith asked the Minister for Finance the number of transnational corporations availing of the wage subsidy scheme; the number of their employees on the scheme; and the sectors of industry in which they operate. [5961/20]
View answer92. Deputy Bríd Smith asked the Minister for Finance the number of employees who have been placed on the wage subsidy scheme and whose earnings are below €350 from this scheme and are not in receipt of any top-up from their employer; and the amount of weekly subsidy these workers receive from the scheme in bands below €350 (details supplied). [6158/20]
View answerI propose to take Questions Nos. 57, 84, 85 and 92 together.
In relation to the Temporary Wage Subsidy Scheme (TWSS), since 9 April 2020 Revenue has published statistics on the operation of the TWSS on a regular basis. On 14 May, Revenue published updated and expanded statistical information in relation to the scheme. All of these statistics are available on Revenue’s website www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.
The data published include the cost of the scheme to date as well as detailed information on employers and employees in receipt of payments under the scheme.
As at 14 May, Revenue report that:
- There are over 53,900 employers registered with Revenue for the TWSS.
- Over 47,300 employers have already received subsidy payments under the TWSS.
- Over 464,400 employees have already received at least one payment under the TWSS.
- The cumulative value of payments made under the TWSS is €936 million.
Regarding the Deputy's question on the number of employers, registered for tax purposes as off-shore that have availed of the wage subsidy scheme; and the cost of the scheme in these cases; the TWSS is only available to employers registered in Ireland that had employees included on their Irish payroll in February 2020 and whose business activities are being adversely impacted by the COVID-19 pandemic. The scheme does not apply to the public service or non-commercial semi-state sector.
Regarding the Deputy's question on the number of transnational corporations availing of the wage subsidy scheme; the number of their employees on the scheme; and the sectors of industry in which they operate, the available information at the above link includes the proportions of employers and employees assigned to Revenue’s Large Corporates Division that are currently availing of TWSS (0.7% of employers and 14.6% of employees)), many of these employers are likely to be multinational companies. Sectoral breakdowns of TWSS employers and employees are also included in the statistics.
Regarding the Deputy's question on the number of workers on TWSS whose earnings are below €205 and €350, respectively, the information published at the above link shows the available wage distribution for TWSS employees (Table 5 of the 14 May statistics, for example).
Finally, regarding the Deputy's question on the number of employees that have been placed on the wage subsidy scheme; and whose earnings are below €350 from the scheme; and are not in receipt of any top-up from their employer; and the amount of weekly subsidy these workers receive from the scheme in bands below €350, Table 11 in the statistics of 23 April, 30 April and 7 May and Table 6 in the 14 May statistics (all published at the link above) includes the available analysis of employer ‘top-up’ payments to employees.
Revenue has advised me that it is continuing to undertake further analysis of TWSS and will publish updated and expanded statistics on a regular basis. These updates will also be published at the link above.
58. Deputy Joan Collins asked the Minister for Finance his views on whether it is an appropriate time to re-evaluate the special arrangements that entities such as REITs enjoy (details supplied); and if he will make a statement on the matter. [6273/20]
View answerFinance Act 2013 introduced the regime for the operation of Real Estate Investment Trusts (REITs) in Ireland. The function of the REIT framework is not to provide an overall tax exemption but rather to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle.
A number of amendments were made to the taxation of REITs as part of Finance Act 2019, to ensure the regime operates as intended. The obligation to deduct REIT Dividend Withholding Tax was extended to include distributions of the proceeds of capital disposals. New measures were introduced to require the proceeds of property disposals to be re-invested in property assets or distributed within a set period. The deemed disposal provisions upon cessation of REIT status were restricted to REITs that have been in operation for at least 15 years, in line with the regime's stated objective of encouraging long-term, stable investment in rental property. Finance Act 2019 also introduction of the “wholly and exclusively” test when calculating the REIT profits available for distribution. This test is common throughout the taxes act, its inclusion in the REIT legislation ensures fair and consistent treatment for those investing in Irish property.
The Deputy may be aware that that my officials prepared a report on Real Estate Investment Trusts, Irish Real Estate Funds and section 110 companies as they invest in the Irish property market in 2019. This report was completed and presented to the Tax Strategy Group in July 2019 and informed the changes introduced in Finance Act 2019, referred to above. I therefore do not believe it to be an appropriate time to conduct a further review of the REIT regime, however I can confirm that my Department actively monitors developments in the property market on an ongoing basis. The aforementioned report can be viewed at the following link: https://assets.gov.ie/19114/2de9c469825a47418526e1d5c217b44c.pdf.
In relation to the further details supplied, it is not appropriate for the Minister for Finance to comment on the remuneration of specific individuals.
59. Deputy Marc Ó Cathasaigh asked the Minister for Finance if he has given consideration to the temporary suspension of the collection of professional withholding tax from payments made to dentists contracted by the HSE and the Department to treat medical card and PRSI eligible patients, respectively; and if he will make a statement on the matter. [6919/20]
View answerI am advised by Revenue that Professional Services Withholding Tax (PSWT) is a deduction at source that is applied to certain payments made by bodies listed in legislation to professional service providers. Tax is deducted at the standard income tax rate, currently 20%. It should be noted that PSWT is not an additional tax. It is instead a payment on account, which is set against the final Income Tax or Corporation Tax liability of the service provider. This is the basis on which PSWT is applied to payments made by the HSE to dentists for the provision of dental services.
There is a wide range of bodies which deduct PSWT and an equally wide range of payments for professional services to which it applies. In these circumstances, it would not be appropriate to suspend the operation of PSWT by one entity for the provision of one particular service.
However, the legislation governing PSWT does provide for the Revenue to make interim refunds, in specified circumstances, within the same tax year as that in which the PSWT is deducted.
I am further advised by Revenue that special arrangements have been put in place to accelerate the processing of interim refunds during the Covid-19 pandemic.
These new arrangements provide for the submission of these claims electronically through Revenue’s MyEnquiries service and this will speed up the provision of refunds to applicants.
To accelerate interim refunds of PSWT Revenue will accept refund claims via MyEnquiries where legible copies of the original F45 and F50 documents are attached. Refunds will be processed on this basis without the requirement to be supported by original F45 documents. All original F45 documents will need to be retained as there will be checks at a future date.
Additionally and in a situation where the relevant F45 form cannot be issued to the specified person due solely to the current Covid-19 circumstances then, for the purposes of attachment to a MyEnquiries refund claim, a written statement issued by the accountable person to the specified person setting out the relevant information will suffice.
Full details of these Covid-19 interim arrangements are available on the Revenue website at www.revenue.ie/en/corporate/communications/covid19/revenue-services.aspx.
All requests for refunds will be given priority attention once received by Revenue
60. Deputy Carol Nolan asked the Minister for Finance if his Department has engaged the use of external consultants from 1 January 2020 to date; the details and costs of such engagements; and if he will make a statement on the matter. [5530/20]
View answerMy department regularly publishes details of consultancy expenditure on its website, most recently for Q1 2020.
The following table outlines the detail and costs of my department’s engagement of external consultants from 1 January 2020 to date.
|
Supplier: |
The details of such engagements: |
Costs: |
|
Indecon International Economic Consultants |
This payment is for an independent report conducted by Indecon entitled the Evaluation of Concept of Community Banking in Ireland. The report concludes that there is no business case for the State to establish a public banking system in Ireland, supporting the outcome of a previous report on this issue published by the Department of Finance and the Department of Rural and Community Development in 2018. |
133,393.50 |
|
Fitzpatrick Associates |
Credit Demand Survey The bi-annual Credit Demand Survey is an independent and statistically significant report into the Irish SME landscape and the availability of, and demand for, credit. The full cost of the survey is recouped from participating banks. |
73,738.50 |
|
Language Communications |
This payment is for hosting the www.switchyourbank.ie website for 2020. The Switch your Bank campaign is a public awareness campaign to raise awareness and promote customer switching of financial products and is facilitated by the Department of Finance as part of its remit to ensure that consumers are protected within the financial sector in Ireland. The cost of the Switch your Bank campaign is fully recoupable by AIB and Permanent TSB in the context of their restructuring plans. |
2,066.40 |
|
A&L Goodbody Solicitors |
Legal advice |
15,990.00 |
|
William Fry |
Legal advice |
117,374.60 |
|
William Fry |
Legal advice |
8,601.39 |
|
|
Total |
351,164.39 |
|
Supplier: |
Consultancies engaged but not completed/invoiced yet |
Cost |
|
RSM Ireland |
Liquidation cost/outcome review |
Nil to date |
|
NM Rothschild & Sons Ltd |
To act as independent Financial Advisor in relation to the State’s remaining banking investments. |
Nil to date |
