Written Answers Nos. 67-77
67. Deputy Aengus Ó Snodaigh asked the Minister for Finance the amount that could be raised for the Exchequer if a value limit was in place on principal private residences currently exempt from Capital Gains Tax, of €300,000. [42267/12]
Amharc ar fhreagraI am informed by the Revenue Commissioners that, as information on the value of capital gains arising from the disposal of principal private residences is not required in capital gains tax returns, there is no dedicated basis for separately identifying the yield that would arise from applying capital gains tax to sales of principal private residences. Accordingly, the specific information requested by the Deputy is not available.
69. Deputy John McGuinness asked the Minister for Finance his views on figures released by the Central Bank of Ireland in August which showed that it is not lending to small and medium enterprises; and if he will make a statement on the matter. [41641/12]
Amharc ar fhreagraI presume the Deputy is referring to Volume 2012, No.8 of the Economic Letter Series published by the Central Bank on 22 August last, entitled “Irish SME credit supply and demand: comparisons across surveys and countries.” I welcome all analysis in this key area which is used to inform all stakeholders. However, the Deputy should note that the Economic Letter contains a footnote stating that the views expressed in this paper are those of the authors and do not necessarily reflect those of the Central Bank of Ireland or the ESCB. The figures published in the report are based upon previously published data and I should point out that they show that Ireland has the second highest rejection rate rather than the highest as stated by the Deputy. While this rejection rate is obviously a concern, I feel that it is important not to always focus on the worst aspect of such reports. Business confidence is crucial in the restoration of the credit market and the continued negative narrative is unhelpful. The report also found that there was a slight improvement in the rejection rates compared with the previous survey.
The findings of the Mazars survey commissioned by my Department and other independent surveys, such as the SAFE survey, are used by the Department of Finance and the Credit Review Office to inform discussions with banks on this key area of the Irish economy and that the pillar banks, in particular adhere to their lending commitments under the recapitalisation agreements. Robust discussions have taken place between the Department, the Credit Review Office and the banks to ensure that the banks are lending into the real economy. In addition, the Government, through the EMC, continue to meet with the banks on a regular basis to underscore the requirement to have credit available to viable SMEs to facilitate and support the recovery of the economy.
In terms of rejection rates from banks in general, I would remind the Deputy that the Credit Review Office (CRO) can review decisions by the pillar banks to refuse, reduce or withdraw credit facilities (including applications for restructured credit facilities) from €1,000 up to €500,000. The Credit Review Office is overturning 55% of the refusals decisions referred to them and I would appeal to SMEs and farmers who have been refused credit by the banks to avail of the services of the CRO.
The latest initiatives by my colleague the Minister for Jobs, Enterprise and Innovation in relation to the credit guarantee scheme and the microfinance loan fund should also assist the flow of credit to SMEs.
In summary, it is vital that the banks continue to make credit available to support economic recovery. However, it is not in the interest of the banks, businesses or the economy for finance to be provided unless the business is viable and has the capacity to meet the interest payments and repay the sum borrowed. I remain open to any constructive suggestions which could augment the Government’s initiatives in this area.
70. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade his views on correspondence (details supplied) regarding ongoing human rights abuses in occupied Palestinian territories; and if he will make a statement on the matter. [42490/12]
Amharc ar fhreagraThe letter which is the subject of the Deputy’s Question appears to be part of a letter writing campaign organised by Trócaire. Similar letters have been sent to most, if not all, members of the Oireachtas, calling for a ban on the importation to the EU of the products of Israeli settlements. A number of Deputies have already been in contact with me in relation to the letters received. I intend very shortly to write to all Deputies setting out my views on the subjects raised in this letter, which I have already broadly set out in various statements and replies to Questions in the House and which have also already been conveyed directly to Trócaire.
71. Deputy Brian Stanley asked the Tánaiste and Minister for Foreign Affairs and Trade if his Department works with local authorities in the delivery of services; and if so, the details of same. [42563/12]
Amharc ar fhreagra72. Deputy Brian Stanley asked the Tánaiste and Minister for Foreign Affairs and Trade if his Department engage with local authorities in the provision of services and if so the details of same. [42584/12]
Amharc ar fhreagraI propose to take Questions Nos. 71 and 72 together.
My Department does not deliver any of its services through local authorities.
73. Deputy Clare Daly asked the Minister for Finance the reason parcel companies (details supplied) have no revenue customs on their premises and An Post is the only parcel depot that has customs personnel present. [42507/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that throughout the EU, the customs control regime that applies to universal postal service providers, such as An Post, is significantly different from that which applies in respect of ordinary fast parcel operators. Postal operators are exempt from the normal customs requirement to submit manifests, containing details of individual shipments that can be subjected to electronic risk analysis in advance of release of goods into free circulation. Therefore, while the need for Customs attendance at fast parcel depots can be informed by the results of risk analysis, this option is not available in respect of postal consignments and it is necessary to maintain a physical presence at the main depots where postal consignments are brought into the State so as to exercise real time control prior to their release. I can further advise that the premises of the named traders are visited by Customs officers on a daily basis to examine goods and to perform import and export controls.
74. Deputy Luke 'Ming' Flanagan asked the Minister for Finance if he will list all the current positions, where the appointment was made by his Department held by retired senior civil servants; and if he will make a statement on the matter. [42666/12]
Amharc ar fhreagraThis Department is redirecting our own primary focus more towards the identification and implementation of measures which will contribute to enhanced confidence, delivering sustainable growth in our economy and thereby repair the damage caused to the lives of citizens, the economy and the banking sector. This involves the reassignment and training of our existing teams so that they can develop greater technical, management and leadership skills necessary to the challenge. We will challenge and acknowledge the efforts of our key performing staff by further developing their skills and add to the value they contribute to the Department. In parallel, we will be adding to our teams to supplement our skills base where gaps are identified. This will also be necessary for succession planning for the work of future generations of our department.
The addition of any new staff to date has occurred through a combination of employment via open competition and the secondment of staff from other areas of the Civil/Public Service and private sector. This Department, following a competitive competition by the Public Appointments Service (PAS), has recruited graduates in the following disciplines to meet the needs of the Department: Human Resources (HR), Law, Accountancy, Economics, Finance/Banking and Tax Policy.
75. Deputy Michael McGrath asked the Minister for Finance in relation to the deadline of 31 December 2012 for first time buyers to avail of mortgage interest relief, if he will explain specifically the stage a borrower has to have reached in order to qualify, for example, mortgage drawn down and mortgage repayment; and if he will make a statement on the matter. [42406/12]
Amharc ar fhreagraThe position is that tax relief is available up to and including the tax year 2017 on interest paid on a qualifying home loan taken out on or after 1 January 2004 and on or before 31 December 2012. Such relief is not confined to first time buyers. In addition, tax relief is not available on the interest paid on a loan taken out on or after 1 January 2013. As regards the deadline, the loan must have been drawn down by 31 December 2012.
A qualifying loan for mortgage interest relief is one which without having been used for any other purpose, is or are used in the purchase, repair, development or improvement of a claimant’s principal private residence. Eligibility for the tax relief on the interest paid on such loan is not contingent on the claimant having made a repayment on that loan prior to 31 December 2012.
76. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if there are tax reliefs available to private nursing homes; if he will identify said reliefs; the cost of such reliefs in 2011 and to date in 2012; and if he will make a statement on the matter. [42416/12]
Amharc ar fhreagraI am advised by the Revenue Commissioners that accelerated capital allowances were available in respect of capital expenditure incurred on the construction or refurbishment of certain health related facilities including private registered nursing homes, residential units associated with registered nursing homes and approved convalescent homes. However, all these schemes have now come to an end and no current expenditure on the provision of any of the above facilities qualifies for the capital allowances relief. In relation to private registered nursing homes, the termination date for incurring qualifying expenditure was 31 December 2009 but where certain conditions were met a later termination date of either 30 June 2010 or 30 June 2011 may have applied. The nursing home must come within the meaning of section 2 of the Health (Nursing Homes) Act, 1990 and must be registered under section 4 of that Act.
A separate scheme of capital allowances was available for residential units constructed on the site of, or on a site immediately adjacent to the site of, a registered nursing home. The units must be operated or managed by a registered nursing home and an on-site caretaker must be provided. Certain other conditions must also be met in relation to the number, design and occupation etc. of the units and in relation to the provision of back-up medical care. The allowances were originally available for qualifying expenditure incurred up to 25 March 2007, and were finally phased out by end April 2010.
In relation to convalescent homes, the termination date for incurring qualifying expenditure was 31 December 2009 but where certain conditions were met a later termination date of either 30 June 2010 or 30 June 2011 may have applied. A convalescent home provides medical and nursing care for individuals recovering from treatment in a hospital. The hospital in question must be one that provides treatment for acutely ill patients. The convalescent home must satisfy the requirements of Section 4 and 6 of the Health (Nursing Homes) Act, 1990 and any regulations made under section 6 of that Act as if it were a nursing home within the meaning of section 2 of that Act.
Qualifying expenditure incurred under all of the above schemes could be written-off at a rate of 15% per annum for 6 years and 10% in year 7. Expenditure incurred on work carried out after the various termination dates does not qualify for any allowances. As mentioned already, all these schemes have come to an end and no current expenditure on the provision of any of the above facilities qualifies for the capital allowances relief. Furthermore, provisions which I introduced in the Finance Act 2012 (section 17) will ensure that with effect from 2015, the Exchequer cost of the legacy of these and other property based schemes will rapidly decline.
I am informed by the Revenue Commissioners that data for the tax years 2011 and 2012 is not yet available as the income tax returns for those years are not due for filing until October 2012 and October 2013 respectively.
Based on the information that has been received and collated to date for the tax year 2010, the latest year available, a total of €43 million was included in 696 claims for capital allowances for the construction of nursing homes. This figure would correspond to a maximum Exchequer cost of the order of €17 million for these returns in terms of income tax and corporation tax forgone. These estimates are calculated before the application of the restriction on the use of certain reliefs by high earners which took effect from 1 January 2007. This restriction on high earners was extended by Section 23 Finance Act 2010.
77. Deputy Joe Higgins asked the Minister for Finance if he will confirm that, when car insurers are authorised by way of written consent for the insured including specific instruction to pay the garage/shop for windscreen replacement, and, following said instruction the insurer settles the claim by sending payment to the insured rather than the garage/shop, and, the insured does not subsequently make payment to the garage/shop, that in this case, the insured has incurred a tax liability under Section 535 and 536 of the Taxes Consolidation Act (1997) and that the insurer by not issuing payment to the garage/shop is in contravention of Statutory Instrument 651 of 2003 EC (Fourth Motor Insurance Directive) Regulations, Road Traffic Act (1961) and Consumer Protection Code 2012. [42431/12]
Amharc ar fhreagraThe day to day responsibility for the supervision and authorisation of financial institutions is a matter for the Central Bank which is statutorily independent in the exercise of its regulatory functions. As such the matter was referred to the Bank for its views. The Bank has indicated that there is no basis for an investigation into this matter as it does not believe there has been any breach of insurance regulations or the consumer code. In relation to the tax aspect of the question the Revenue Commissioners have informed me that in the circumstances outlined in the question, it would seem that the insured has incurred a capital gains tax liability under Section 535 of the Taxes Consolidation Act, 1997. However, an annual exemption of 1,270 Euro is provided for in the capital gains tax code in the case of gains made by individuals. In addition, if the payment received by the insured is used to acquire a replacement windscreen, this would be treated as tax neutral, provided the individual concerned makes a claim to the Revenue Commissioners for this treatment to apply.
