Written Answers Nos. 86-110
86. Deputy Jennifer Murnane O'Connor asked the Minister for Transport the minimum distances that helicopters must adhere to when flying over residential areas and or when travelling on flight paths directly over residential properties; and if he will make a statement on the matter. [34494/20]
View answerThe Irish Aviation Authority (IAA) is the competent authority for aviation safety regulation in Ireland, including helicopter operations, under the Irish Aviation Authority Act 1993. As such the question has been referred to the IAA for direct reply.
87. Deputy Niall Collins asked the Minister for Finance his views on correspondence (details supplied); and if he will make a statement on the matter. [34228/20]
View answer96. Deputy Dara Calleary asked the Minister for Finance his plans to review the Covid restrictions support scheme to support food service and food wholesale companies affected by the Covid-19 level 3 and 5 closures; and if he will make a statement on the matter. [34356/20]
View answerI propose to take Questions Nos. 87 and 96 together.
The details of the Covid Restrictions Support Scheme (CRSS) are set out in the Finance Bill 2020 and guidelines on the operation of the scheme are available on the Revenue website (https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf). The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.
The support will be available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.
Where, as a result of the restrictions, a company or a self-employed individual is either forced to temporarily close their business, or their business is required to operate at significantly reduced levels, they will qualify for support under the scheme. Certain other conditions will apply, including that the person has a tax clearance certificate.
Where businesses ordinarily operate from a business premises (generally a building) located in a region for which restrictions are in operation, they may qualify under the scheme provided they meet the eligibility criteria, including the requirement that customers are either prohibited, or significantly restricted, from accessing their business premises to purchase goods or services due to the specific terms of the Covid restrictions announced by Government.
Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as a track bookmaker, that business will not meet the eligibility criteria. A business that does ordinarily operate from a music or entertainment venue (for example, a company that operates a theatre) or a business in the tourism sector carrying on a trade consisting of, for example, the operation of a gallery or other cultural attraction, located in a region subject to restrictions, and who meets the eligibility criteria, will however be able to claim support under CRSS.
The scheme will not apply to a business in the events industry or in other sectors, which does not ordinarily operate from a fixed business premises located in a region subject to the restrictions, but rather supplies goods or services to a business that does qualify for support under CRSS because, under the Covid restrictions, that other business is required to temporarily close or significantly reduce its activity. Each business must satisfy the eligibility criteria in their own right.
It is not sufficient that the business supplies goods or services to another business that qualifies for the support because, under the Covid restrictions, that other business is required to temporarily close, or significantly reduce, its activity.
Companies and self-employed workers who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including the range of measures announced as part of Budget 2021 to support live entertainment in 2021, and existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.
88. Deputy Dara Calleary asked the Minister for Finance if he has been consulted on proposed changes to the retail export scheme; his views regarding the potential effect of these changes on the retail sector, particularly those in tourism sectors and regions; and if he will make a statement on the matter. [34256/20]
View answer92. Deputy Fergus O'Dowd asked the Minister for Finance if he will address the concerns raised in correspondence (details supplied); and if he will make a statement on the matter. [34210/20]
View answer93. Deputy Niall Collins asked the Minister for Finance his views on matters raised in correspondence (details supplied); and if he will make a statement on the matter. [34213/20]
View answer98. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied); and if he will make a statement on the matter. [34408/20]
View answer102. Deputy Catherine Murphy asked the Minister for Finance if his attention has been drawn to correspondence from a group (details supplied); if he will update his initial response; and if he will make a statement on the matter. [34481/20]
View answer104. Deputy Michael Healy-Rae asked the Minister for Finance if he will address issues raised in relation to the retail export scheme (details supplied); and if he will make a statement on the matter. [34496/20]
View answerI propose to take Questions Nos. 88, 92, 93, 98, 102 and 104 together.
I have previously outlined the rationale for the changes proposed to the VAT Retail Export Scheme. This scheme enables visitors that are resident outside the EU to benefit from VAT relief on goods purchased in Ireland and subsequently taken outside of the EU. If the scheme applies to UK visitors post-Brexit without changes UK visitors will be able to buy goods VAT free in Ireland.
This could give rise to a considerable displacement of consumer purchases, resulting in significant VAT revenue losses, as purchases by UK visitors in Ireland would not produce any VAT revenues. Due to the volume of passenger movements between the UK and Ireland, the volume of refund applications is likely to significantly increase which simultaneously heightens the risk of abuse of the Retail Export Scheme post Brexit.
As I have previously advised, the measures in the Bill are precautionary and aim both to minimise the potential for abuse of the scheme and to reduce the possibility of diversion in retail consumption from Ireland to the UK, post Brexit.
The amended legislation proposed in the General Scheme of the Brexit Omnibus Bill 2020 provides for two elements to restrict the scheme. The first is a new requirement of proof of importation of the goods into the UK and the associated proof of payment, where applicable, of relevant UK VAT and duties, for the goods purchased under the scheme in order to qualify for a refund. The second is to provide that the value of qualifying goods must exceed €175 in value in order to be eligible for a refund under the scheme. This change is fully compatible with EU law and is in line with the EU VAT Directive. The monetary limit will apply in respect of all third country travellers who apply for a refund under the scheme, post commencement of the relevant sections.
The Ireland/Northern Ireland Protocol ensures that there will be no VAT Retail Export Scheme between Ireland and Northern Ireland. Any changes to the operation of the scheme will of course be kept under review by Revenue.
89. Deputy Michael Collins asked the Minister for Finance if he will address a matter regarding the case of first-time buyers (details supplied); and if he will make a statement on the matter. [34359/20]
View answerThe Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need 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 Ireland over the previous four years, subject to limits outlined in the legislation.
Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser and that he or she has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. The obligations apply to each party, where there is more than one party to a claim.
The definition of “first-time purchaser” for the purposes of the scheme is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling. The “qualifying residence” must be occupied as the sole or main residence of the first-time purchaser.
In the circumstances raised by the Deputy, where a person has previously legally purchased or self-built a home as a “first-time purchaser” and received a HTB refund in respect of that property, but has since relinquished a holding in the property with no financial gain, he or she will no longer be considered for the HTB scheme given that it is a prerequisite for qualification for the relief that the taxpayer be a first-time purchaser.
90. Deputy Thomas Gould asked the Minister for Finance the local property tax paid by local authorities on social housing stock in 2019 and to date in 2020, by local authority in tabular form. [34450/20]
View answerI am advised by Revenue that it is precluded, by virtue of taxpayer confidentiality obligations set out in section 851A of the Taxes Consolidation Act 1997, from providing the specific information sought by the Deputy in relation to Local Property Tax (LPT) payments made by Local Authorities on social housing stock.
The Department of Housing, Local Government and Heritage may be in a position to provide further information in respect of Local Authorities.
Revenue publishes a comprehensive range of quarterly and annual statistics relating to LPT on its website, including detailed information regarding Local Authority collection and compliance data on all its housing stock, at www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/index.aspx.
91. Deputy Pauline Tully asked the Minister for Finance the timeframe for the reintroduction of primary medical certificate assessments; and if he will make a statement on the matter. [34198/20]
View answerThe Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations. In order to qualify for relief an organisation must be entered in the register of charitable organisations under Part 3 of the Charities Act 2009, be engaged in the transport of disabled persons and whose purpose is to provide services to persons with disabilities.
In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.
The terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 set out the following medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
A Supreme Court decision of 18th June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal's refusal to grant them a PMC. The judgement found that the medical criteria set out in the Regulations did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.
The Deputy will appreciate that the complex legal and policy issues raised by the Supreme Court decision will require careful consideration. In parallel to that consideration there is a need to examine how best the Scheme can target resources to those persons who most need them. I am currently giving consideration to policy and legislative proposals set out by my officials and will seek to progress this issue in the coming weeks.
In the interim, on foot of the legal advice received, it became clear that it was appropriate to revisit the six medical criteria set out in Regulation 3 of Statutory Instrument 353 of 1994 for these assessments. In such circumstances, it is not proposed to continue with PMC assessments until a revised basis for such assessments is established. The medical officers who are responsible for conducting PMC assessments need to have assurance that the decisions they make are based on clear criteria set out in legislation. While Regulation 3 of Statutory Instrument No. 353 of 1994 was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989.
My officials were in contact with the Medical Board of Appeal and with officials in the Department of Health and will continue to liaise with them, as required, going forward. I have also written to the Minister for Health to request that there are no further PMC assessments until a sound legal basis for such assessments is re-established.
While it is regrettable that PMC assessments are currently not taking place and I acknowledge that this will result in a growing waiting list, I can give a commitment that I will seek to bring clarity to this situation as soon as possible such that PMC assessments can re-continue based on a firm legal basis.
Finally, I would like to clarify that the Scheme itself is still operating. All persons or charitable organisations that can currently access the Scheme will continue to be able to do so and make claims for tax reliefs and the fuel grant in the normal manner.
94. Deputy Cian O'Callaghan asked the Minister for Finance if he will include those on TWSS and EWSS for eligibility for the Christmas bonus available to those on the pandemic unemployment payment; if not, the reason for exclusion; and if he will make a statement on the matter. [34216/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. The TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS), which was legislated for in the Financial Provisions (Covid-19) (No. 2) Act 2020.
The design of the EWSS reflects the changing environment around the COVID-19 pandemic which has shifted from crisis mode to one of living alongside the virus, in line with the recently announced Resilience and Recovery 2020-2021: Plan for Living with COVID-19. The Government’s focus has therefore shifted from an employee income support paid via the employer that maintained the existing employee/employer relationship insofar as was possible, to a direct employer subsidy to help support viable firms and encourage employment, including prospective employment of new hires and seasonal workers.
As the EWSS is not an income support, there is no basis to include those on the EWSS for eligibility for the “Christmas bonus”.
The question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in light of the impact of the Covid-19 pandemic on the employer’s business, are matters that were outside the remit of the EWSS and the scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned.
95. Deputy Denis Naughten asked the Minister for Finance the average value of VAT reclaim purchases per customer, per outlet under the retail export scheme; the number of reclaims in the last full tax year; the value of same; and if he will make a statement on the matter. [34254/20]
View answerRetailers operate the Retail Export Scheme in their own right or they operate it in conjunction with a Value-Added Tax (VAT) refund agent. Revenue do not make refunds to tourists or travellers under the retail export scheme, it is the retailer or VAT refund agent who will make the VAT refund when proof of export is obtained. There is no specific or separate reporting requirement so the figures requested by the Deputy are not available.
97. Deputy Sean Sherlock asked the Minister for Finance if he will address a matter (details supplied) regarding Covid-19 schemes. [34360/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which was provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, expired on 31 August 2020. The TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS), which was legislated for in the Financial Provisions (Covid-19) (No. 2) Act 2020.
The design of the Employment Wage Subsidy Scheme (EWSS) reflects the changing environment around the COVID-19 pandemic which has shifted from crisis mode to one of living alongside the virus, in line with the recently announced Resilience and Recovery 2020-2021: Plan for Living with COVID-19. The Government’s focus has therefore shifted from an employee income support paid via the employer that maintained the existing employee/employer relationship insofar as was possible, to a direct employer subsidy to help support viable firms and encourage employment, including prospective employment of new hires and seasonal workers.
The EWSS operates differently to the TWSS in that it is a flat-rate subsidy that is payable to employers based on the number of eligible employees included on their payroll. Eligible employees are defined as those earning weekly gross wages of between €151.50 and €1,462. The EWSS also re- establishes the requirement for employers to operate the ‘normal’ PAYE system each time they pay their employees and deduct income tax, USC and PRSI. These normal (real-time) deductions were not operated for TWSS or PUP payments, which will be taxed at year end.
On 25 September 2020, Revenue provided an update, by way of public announcement, as to how any tax liability arising on the TWSS or PUP will be dealt with. I am pleased to welcome this fair and flexible approach being taken by Revenue and I am confident that Revenue will continue to work with their customers to minimise any financial hardship to the greatest extent possible, noting that because of our progressive income tax system, in the vast majority of cases, the expected tax liability will be modest in scale.
I have been advised by Revenue that the question of an individual’s entitlements in an employment context, and the question of what wages an employer may or may not be in a position to pay such an employee in light of the impact of the Covid-19 pandemic on the employer’s business, were matters that were outside the remit of the EWSS. Essentially, the scheme has no role in relation to the employer/employee relationship in so far as the terms, conditions and entitlements of the employment are concerned.
For those businesses who may need additional support, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 - including the Covid Restriction Support Scheme (CRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
99. Deputy Neale Richmond asked the Minister for Finance the engagement he has had with the Central Bank in relation to the suspension of the Euroclear system last week; the reason this has happened so many times in 2020 compared to previous years; and if he will make a statement on the matter. [34414/20]
View answerThe Deputy refers to the suspension of the Euroclear system last week. However, I believe the incident he is referring to was related to the TARGET2 system. I will answer the question on that basis.
TARGET2 is the real-time gross settlement system owned and operated by the Eurosystem. Under the Regulation on oversight requirements for systemically important payments systems (SIPS Regulation) the European Central Bank (ECB) is responsible for the oversight of the TARGET2 system.
Central banks (including the Central Bank of Ireland) and commercial banks can submit payment orders in euro to TARGET2, where they are processed and settled in central bank money, i.e. money held in an account with a central bank.
As a member of the Eurosystem, the Central Bank of Ireland operates TARGET2.IE for Irish participants.
On Friday 23 October, an incident adversely affected connectivity to the European TARGET2 system and its participants at 13.40 (Irish Time). Connectivity was restored by the operator at 21.30. Backlogs started clearing after that and late into the night / early morning of 24 October. Regular updates were provided by the ECB via their website. The Central Bank of Ireland maintained contact with Irish participants, as well as officials in my Department, updating them throughout the incident.
This incident is the third significant incident with TARGET2 in 2020 – all of which were publicised by the ECB via their website. The other incidents were in August and March and were unrelated to each other. According to initial investigations by the operator into this October incident, it is also an isolated incident, unrelated to the others and the cause in this case was identified as a hardware issue.
100. Deputy Darren O'Rourke asked the Minister for Finance the amount of tax revenue forgone through tax reliefs related to forestry by income tax, corporation tax, capital gains tax, value added tax, gift and inheritance tax, stamp duty and other relevant tax relief in each of the years 2010 to 2019 and to date in 2020, in tabular form; and if he will make a statement on the matter. [34416/20]
View answer101. Deputy Darren O'Rourke asked the Minister for Finance if the analysis and reasoning behind the tax reliefs in the forestry sector will be provided; and if he will make a statement on the matter. [34417/20]
View answerI propose to take Questions Nos. 100 and 101 together.
I am advised by Revenue that the information available in respect of tax reliefs specifically associated with forestry is as follows:
- Data on the exemption of profits from the occupation of woodlands, including the numbers availing of the relief, and the cost to the Exchequer for 2011 to 2018 are detailed in the table below. (Source: ‘Property Based Tax Exemptions’, available at link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/property-reliefs.aspx;)
|
Year |
Maximum tax cost assumed at 40% for Income Tax and 12.5% for Corporation Tax (€m) |
No. of claimants |
|
2018 |
33.7 |
9,192 |
|
2017 |
29.9 |
9,381 |
|
2016 |
30.6 |
8,858 |
|
2015 |
31.5 |
9,077 |
|
2014 |
30 |
8,234 |
|
2013 |
26.5 |
8,013 |
|
2012 |
25.2 |
7,550 |
|
2011 |
24.8 |
6,679 |
- Data on the relief from Stamp Duty in respect of the sale or lease of land on which commercial woodlands are growing, including the numbers availing of the relief and the cost to the Exchequer for 2011 to 2019 are detailed in the table below. (Source: ‘Costs of Tax Expenditures’ which is available at link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.)
|
Year |
Cost (€m) |
No. of claimants |
|
2019 |
77 |
189 |
|
2018 |
66 |
190 |
|
2017 |
39 |
193 |
|
2016 |
34 |
124 |
|
2015 |
49 |
102 |
|
2014 |
12 |
108 |
|
2013 |
8 |
89 |
|
2012 |
9 |
64 |
|
2011 |
11 |
76 |
|
2010 |
8 |
70 |
Updates for later years will be published when the relevant tax returns are filed and processed.
In relation to the reasoning behind the reliefs, the 'Budget 2006: Review of Tax Schemes (Voume III), Initial Review of Certain Tax Schemes' found that:
"In relation to the introduction of tax relief for forestry in 1969 and its subsequent extension, Dáil debates and other records do not identify any specific aim or objective for the granting of tax relief to the sector other than supporting government forestry policy which has as its overall aim, the development of forestry to a scale and in a manner which maximises its contribution to national economic and social well-being on a sustainable basis."
(https://assets.gov.ie/8102/7ed40842ab474aa8886dd59da83ec1b9.pdf)
In 2014, the 'Agri-taxation Review: Report of the Agri-taxation Working Group to the Minister for Finance and the Minister for Agriculture, Food and the Marine' recommended that the reliefs should be retained:
"... profits or gains from the commercial occupation of woodlands . Forestry plays a key role as a carbon sink, helping to mitigate the increase in greenhouse gas emissions from other sectors of the economy. Forestry is capital-intensive investment with costs front-loaded. Compared with other industrial sectors it has a relatively long period before returns are realised. The Department of Finance 2006 Review of Tax Schemes recommended that the tax treatment of forestry should remain and this was echoed by the Commission on Taxation in 2009. The Working Group agrees with the concerns of forestry stakeholders expressed during the consultation process that the non-retention of this measure would act as a major disincentive to new investment in forestry."
(https://igees.gov.ie/wp-content/uploads/2014/10/Agritaxation_-Review-_Final_web-pub.pdf)
Finally, the 2018 'Progress Implementation Update of the Agri-taxation Review 2014', noted that, in order "to assist environmental sustainability, profits or gains from the commercial occupation of woodlands remained tax exempt."
( http://www.budget.gov.ie/Budgets/2019/Documents/Tax%20Expenditures%20Report%20Budget%202019.pdf)
103. Deputy Catherine Murphy asked the Minister for Finance if he and-or the Revenue Commissioners have conducted an impact assessment in the context of the retail export scheme post-Brexit; and if he and or the Revenue Commissioners have a documented forecasting and or model of the way in which sectors will be effected post-Brexit that fall under the scheme. [34487/20]
View answerThe Retail Export Scheme enables visitors that are resident outside the EU benefit from VAT relief on goods purchased in Ireland and subsequently taken outside of the EU. Under existing rules, when the UK becomes a third country, visitors from Britain will be able to avail of the scheme. No minimum threshold currently applies in respect of expenditure on which VAT relief may be claimed.
If the scheme applies to visitors from Britain post-Brexit and if the UK were to operate a similar scheme for EU visitors, Irish consumers would be able to buy goods VAT free in Britain and visitors from Britain would be able to buy goods VAT free in Ireland. This could give rise to a considerable displacement of consumer purchases in both directions, resulting in significant VAT revenue losses; purchases by UK visitors in Ireland would not produce any VAT revenues and collecting VAT on goods in excess of personal importation allowances brought into Ireland by consumers would be extremely difficult. The UK has announced its intention to exclude EU visitors from their Retail Export Scheme. It was always my intention to adopt reciprocal measures in Ireland to the greatest extent possible if the UK adopted such restrictions and that remains my position. These restrictions, in Ireland and Britain, will help avoid tax driven displacement of consumer spending and protect tax revenues. Revenue has also advised that with the volume of travel normally between Britain and Ireland, and the volume of Retail Export Scheme claims that would be likely to arise, there would be significant scope for abuse, with purchases of goods for use in Ireland presented as being for export.
The measures contained in the Brexit Bill do not eliminate the use of the VAT Retail Export Scheme for UK residents, post Brexit. Instead, they provide a legal basis to control and minimise the scope for abuse of the scheme. The amended legislation provides that the value of qualifying goods must exceed €175 in order to be eligible for a refund under the scheme. This change is fully compatible with EU law and is in line with the EU VAT Directive. I also intend to introduce a requirement of proof of importation of the goods into the UK and the associated proof of payment, where applicable, of relevant UK VAT and duties, for the goods purchased under the scheme in order to qualify for a refund.
No study of the kind referred to by the Deputy has been undertaken by my Department or by Revenue, but the risks are clear. I am sure the Deputy will appreciate that any development that would weaken our tax base at this time is highly undesirable.
105. Deputy Neasa Hourigan asked the Minister for Finance if all recommendations of the Moriarty tribunal have been implemented; the recommendations that are outstanding; when they will be implemented; and if he will make a statement on the matter. [34514/20]
View answerThe Moriarty Tribunal made a number of recommendations which affected a number of Government Departments. As Minister for Finance, I can only respond in relation to the recommendations made in relation to my own Department.
As the Deputy will be aware, the tribunal pointed out problems to be addressed in our system of financial regulation. Poor supervision, an overly-deferential attitude by regulators, poor assessment of risks and a lack of follow-through on enforcement, all played a part in the financial crisis. I and my European counterparts have been working steadfastly since the financial crisis to bring about strengthened oversight and resolution regimes. The entire financial services landscape has changed significantly, characterised by the presence of new European institutions; strengthened regulations; a more intrusive supervisory approach; and a new focus on macro-prudential requirements.
In addition to the developments at European level, we continue to look at how we can improve on the domestic supervisory framework and, in this regard, we have committed in our Programme for Government to introduce a Senior Executive Accountability Regime to deliver heightened accountability within the banking system.
In response to the Tribunal recommendations I considered the provision of tax relief for donations to political parties and decided against introducing such relief. The Electoral (Amendment) (Political Funding) Act 2012 provided for changes to the Electoral Act, 1997 and imposed new limits for donations. Donations to individuals exceeding €600 must be declared and donations exceeding €1,000 in any one year may not be accepted. Political party donations greater than €1,500 must be declared and donations greater than €2,500 in any one year may not be accepted. These limits, in themselves, should act to deter any attempts by wealthy individuals to influence political activity.
Recommendation: Representations to Revenue by Office holders
In relation to this proposal, I remain of the view that this recommendation could best be considered in the context of the Government's overall approach to political and parliamentary reform. Representations are a valid part of the political process. The Government may wish to consider whether this recommendation should be confined to Revenue, or to Office holders, or whether the Commissioners decision to publish data on the volume of representations made by each Deputy is an adequate response.
The Office of the Revenue Commissioners has advised in relation to the following recommendations of the Moriarty Tribunal:
Recommendation: Independence of the Revenue Commissioners
Section 101 of the Minister and Secretaries (Amendment) Act 2011 placed on a statutory basis the independence of the Revenue Commissioners in the exercise by the Commissioners of their statutory functions under the various taxation and customs enactments. This has given effect to the recommendation of the Report of the Tribunal into Payments to Politicians and Related Matters (that is, the report of Mr. Justice Moriarty), that the principle or convention of the independence of the Revenue Commissioners be placed on the more robust status of a legislative provision.
Recommendation: Transmission to other agencies of information obtained by Revenue under bilateral agreements
This recommendation has been considered. These agreements are international treaties which are very precisely drawn as to the purpose for which information may be used and would not permit such transmission. However, if opportunities arise in the future, the Commissioners will consider the matter further.
However, where in the particular context of multilateral automatic exchange of information arrangements, specific circumstances arise on a case-by-case basis that would warrant Revenue considering requesting permission under those arrangements from the tax authority providing the information concerned to transmit information to another agency, Revenue will do so.
106. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform the status of supplementary pension entitlements for post-1995 retirees within the Civil Service; and if he will make a statement on the matter. [34393/20]
View answerPensions for established civil servants who are not members of the Single Public Service Pension Scheme (SPSPS) were provided for under Section 2 of the Superannuation Act 1859 (as amended by section 2 of the Superannuation Act 1909). The Act provides for payment of an annual pension equivalent to one eightieth of salary for each year of service capped at forty years’ service.
In 1995, the Government decided that full social welfare cover should be extended to all newly appointed civil servants and that they should pay the full Class A social insurance contribution. The aim of integration with the social insurance system is to prevent “double pensioning” where both an occupational public service pension and the State Pension Contributory (SCP) would both be payable.
The change was introduced under the Social Welfare (Modifications of Insurance) (Amendment) Regulations 1995 (S.I. No 77/1995) as amended whereby, with effect from 6 April 1995, all newly recruited civil servants are fully insured and subject to Class A PRSI.
The new rules were notified to civil servants under Circular 6/1995 – Revised Social Insurance Status and Conditions of Service of Certain Civil Servants. In accordance with paragraph 3 of the Circular, and consistent with the Social Welfare Regulations, the new rules apply to persons appointed to established civil service positions on or after 6 April 1995.
Supplementary pensions arise when a bridging payment is required to provide for an individual’s overall public service pension entitlement because there can be a shortfall in this benefit in certain circumstances. Paragraph 18 of the Circular provides for payment of a supplementary pension as follows:
"18. The revised superannuation arrangements include provisions for the payment of a supplementary pension in certain circumstances to pensioners in respect of periods during which the pensioner is not employed in any capacity which involves a social insurance contribution and, due to causes outside his/her own control, fails to qualify for social insurance benefit or qualifies for such benefit at less than the maximum personal rate. The supplementary pension will be equal to the difference between
(i) the occupational pension which would have been payable if it had been based on pensionable remuneration instead of net pensionable remuneration and
(ii) the aggregate of the actual occupational pension payable and the actual rate of social insurance benefit payable (including any payments for dependents)."
The grant of a supplementary pension under paragraph 18 of the Circular is not automatic and is conditional upon a number conditions as follows:
1. The individual must have reached minimum pension age in accordance with the rules of his/her pension scheme;
2. The individual must not be engaged in paid employment;
3. He or she does not qualify for social insurance benefit or fails to qualify for such benefit at the maximum rate; and
4. His or her failure to qualify must be due to causes outside his or her control.
The arrangements for the payment of supplementary pensions has always existed for fully insured civil servants. Similar rules for integrated pension schemes also apply across the wider public service e.g. in the education sector.
107. Deputy Róisín Shortall asked the Minister for Public Expenditure and Reform the position regarding construction works at a Garda station (details supplied) in County Dublin; the reason for the long delay in the completion of these works; and if he will make a statement on the matter. [34509/20]
View answerThe scaffolding referred to by the deputy was erected due to safety concerns arising from storm damage to part of the building. Various surveys and investigations were necessary to assess the damage and it was concluded that the building should be demolished and replaced. In order to do so alternative temporary facilities were required to be put in place in advance of any demolition. These facilities are scheduled to be handed over to An Garda Síochána for occupation this week and the demolition works will commence shortly thereafter.
108. Deputy Johnny Mythen asked the Minister for Public Expenditure and Reform when he will officially sign off on the flood relief scheme for the River Slaney, Enniscorthy town, County Wexford. [34512/20]
View answerThe Enniscorthy (River Slaney) flood defence scheme is being progressed by Wexford County Council(WCC) on behalf of the Commissioners of Public Works as a scheme under the Arterial Drainage Acts 1945 and 1995. This is a significant scheme within the Office of Public Works €1 billion flood relief investment programme, and on completion will protect 236 properties in the town.
The Scheme requires formal Confirmation to proceed from the Minister for Public Expenditure and Reform (MPER). This is a statutory requirement under the Arterial Drainage Acts, which now, under the recent European Union (Environmental Impact Assessment) (Arterial Drainage) Regulations 2019, also requires the MPER to carry out an Environmental Impact Assessment (EIA) of the proposed Scheme. This will involve, inter alia, a formal review by MPER of the Environmental Impact Assessment Report (EIAR) commissioned by WCC and recently submitted (along with a Natura Impact Statement) to the MPER as part of the formal Confirmation process.
The statutory public consultation period required in relation to this process has recently been completed by the Department of Public Expenditure and Reform (DPER), and any relevant observations are being taken into consideration. In addition to this, DPER are currently engaging with independent consultants, appointed on behalf of the Minister for Public Expenditure and Reform, in relation to reviewing the submissions received together with a review of the Environmental Impact Assessment Report (EIAR) and the Natura Impact Statement submitted as part of the formal confirmation process. The results of these reviews and assessments, which are statutory requirements under the European Union (Environmental Impact Assessment) (Arterial Drainage) Regulations 2019 are expected shortly. It is anticipated that DPER will revert to the OPW shortly in relation to these matters
It is not possible at this point in the process to give specific dates for confirmation by the MPER as the assessment has not been finalised.
109. Deputy Brendan Howlin asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the supports available to a group (details supplied) that seem to be ineligible for any of the current supports other than the basic wage subsidies set out; and if she will make a statement on the matter. [34383/20]
View answerWorkers in the arts sectors, particularly those engaged in performances were among the first to be impacted in the country’s public health response to the crisis and they will be among the last to return to work. Many are shut, or hugely curtailed, yet these are activities which we hugely value as a soceity and which are important for mental wellbeing. As Minister, I am fully aware of the significant impact the COVID-19 crisis has and continues to have on the sectors that my Department supports
I note that the Group to which the Deputy refers is receiving the Employment Wage Subsidy Scheme in respect of its members/employees and it is therefore constituted as a business and there are a wide range of supports available to help small businesses impacted by the COVID-19 crisis. The guide to business supports booklet gives details of the key supports and resources available to help businesses and is available at this link https://dbei.gov.ie/en/Publications/Supports-for-businesses-COVID-19.html. In addition the Department of Business, Enterprise and Innovation has a Business Support Call Centre for information on the government supports available to businesses and enterprises affected by COVID-19 and can be contacted at +353 1 631 2002 or infobusinesssupport@dbei.gov.ie
Further details of financial supports can be viewed on gov.ie website at a dedicated webpage that can be accessed at the following link https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/. These include income supports, loans, grants, vouchers and schemes, rates waiver and tax measures as well as skills and training supports.
In Budget 2021, the Government announced the provision of support of €50m for the live entertainment sector. This will include measures for the commercial entertainment sector and will support live entertainment across the country. The 2021 supports for the live entertainment sector will be the subject of further consultation with stakeholders. It will also be informed by the pilot live performance scheme in 2020 which is being rolled out now.
Earlier in the autumn, a project called the Music Industry Stimulus Package was managed on behalf of my Department by First Music Contact. The Package was targeted at professional musicians and their teams to support song-writing camps, recording and album releases. While this scheme is now closed, my Department will consider its continuation in the future.
110. Deputy Michael Healy-Rae asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the status of a grant application by a person (details supplied); and if she will make a statement on the matter. [34193/20]
View answerThe administration of the Covid-19 Adaptation Grant scheme for tourism businesses is an operational matter for the Board and management of Fáilte Ireland. Accordingly, I have referred the Deputy's question to them for further information and direct reply. Please advise my private office if you do not receive a reply within ten working days.
