Written Answers Nos. 73-79
73. Deputy Willie O'Dea asked the Minister for Finance the amount of new lending, excluding rescheduling of loans and overdrafts, advanced by banks to small and medium enterprises since he instructed €3.5 billion per annum to be advanced to them by each of the two pillar banks; and if he will make a statement on the matter. [34245/12]
Amharc ar fhreagraThe Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. In terms of the pillar banks’ progress in achieving the 2012 targets, the precise information reported to my Department and the Credit Review Office (CRO) is commercially sensitive. As such there is limited specific detail that can be divulged on the tracking of the banks’ performances. However the Deputy may wish to note that the independent Credit Review Office does, as part of its remit, monitor the banks’ progress in relation to the targets and reports on a quarterly basis in this regard. Mr Trethowan’s next report is due to be published shortly.
Data provided by the Central Bank indicates that the drawdown of new lending by non-financial SMEs from credit institutions in Ireland was €1.2 billion in the first 6 months of 2012. Figures for the equivalent period in 2011 show drawdowns of €1.6 billion. Excluding SMEs in the property related sectors these figures show drawdowns of new lending of €866m in the first 6 months of 2012. Figures for the equivalent period in 2011 show drawdowns of €1.1 billion.
For the Deputy’s information, the relevant statistics for credit made available to small business are accessible at: http://www.centralbank.ie/polstats/stats/cmab/Documents/ie_Table_A.14.1_Credit_Advanced_to_Irish_Resident_Small_and_Medium_Sized_Enterprises.xls
76. Deputy Willie O'Dea asked the Minister for Finance the proportion of revenue raised used for job creation measures; and if he will make a statement on the matter. [34010/12]
Amharc ar fhreagraAs a general principle revenues such as those from tax revenue and non-tax revenue are not assigned to particular areas of expenditure. Rather they form part of the overall “pot” of resources, along with funds sourced from borrowing and capital receipts, from which the Government draws for expenditure on State services. As regards the resources available for job creation these are detailed in the Revised Estimates for Public Services 2012 which was published earlier this year. Further details on specific measures can be provided by the relevant Ministers.
As the Deputy will be aware of course, in order to fund the various measures introduced as part of last year’s Jobs Initiative, the Government introduced a temporary levy on funded pension schemes and personal pension plans. The measures introduced as part of the Jobs Initiative included a new second reduced VAT rate of 9% aimed primarily at the tourism sector, a halving of the employers PRSI rate until 2013, small amounts of additional current and capital expenditure aimed primarily at labour intensive projects and increasing the number of available educational, training and up-skilling places.
77. Deputy Micheál Martin asked the Minister for Finance if he has concerns regarding Ireland being referred to as a tax haven; and if he will make a statement on the matter. [34340/12]
Amharc ar fhreagraThe OECD and the international community do not regard Ireland as a tax haven. The OECD identifies four key indicators of a tax haven: the first is having no taxes or only nominal taxes; the second is a lack of transparency; the third indicator is an unwillingness to exchange information with tax administrations of OECD member countries; and the fourth indicator is absence of a substantial activity requirement. None of these criteria apply to Ireland. Ireland has a comprehensive taxation system covering income, capital and indirect taxes and has Double Taxation Relief Agreements with 68 other countries. The January 2011 Global Forum Peer Review Report on Ireland’s legal and regulatory framework for transparency and exchange of information found that Ireland has an effective system for the exchange of information in tax matters and is fully compliant with OECD standards.
The Irish 12.5% corporate tax rate is a general rate for trading income that requires the trade to have real substance and activity. We do not distinguish between small and large enterprises or between enterprises that service the local economy and those that have a multinational focus.
Ireland is bound by the same rules on State Aid, Code of Conduct on Business Taxation, and rulings of the Court of Justice as all EU Member States. Ireland does not support harmful tax competition. Ireland continues to participate fully in the EU Code of Conduct Group, which addresses harmful tax competition, and in the OECD Forum on Harmful Tax Practices.
78. Deputy Richard Boyd Barrett asked the Minister for Finance if he will report on the most recent figures for growth and for the economy here; and if he will make a statement on the matter. [34961/12]
Amharc ar fhreagraNational accounts for the second quarter of this year recently published by the Central Statistics Office show no change in the level of GDP in the second quarter of this year relative to the first. As a result, the level of GDP was down by just over 1 per cent relative to the same period of 2011. This follows an annual increase of just over 2 per cent in the first quarter. These figures are broadly consistent with a modest increase in the level of economic activity this year, as envisaged by my Department last April. My Department will publish updated projections covering the period 2012-2015 later this month.
79. Deputy Micheál Martin asked the Minister for Finance if he expects all employees and or advisors to Ministers to pay tax here; and if he will make a statement on the matter. [34343/12]
Amharc ar fhreagraIn relation to all tax matters, I expect everybody – including Government Departments, other public bodies and Government advisers – to comply with our tax laws by paying all tax due and by operating the correct deduction systems. The Code of Practice for the Governance of State Bodies which was previously published by my Department sets out at paragraph 19, certain principles in relation to tax compliance including that “State bodies should be exemplary in their compliance with taxation laws and should ensure that all tax liabilities are paid on or before the relevant due dates”. I consider that these principles, which I endorse, apply equally to Government Departments.
I am aware that the Chairman of the Revenue Commissioners has written to Secretaries General of Government Departments reminding them of the provisions of the Code, encouraging them to consider how best to integrate tax compliance into the corporate governance framework for their MAC or Management Board, how best a culture of good tax compliance may be inculcated in the agencies/public bodies under their Departments’ aegis, and drawing their attention to the Code of Practice for Revenue Audit.
