Wednesday, 30 Jan 2013

Written Answers Nos. 59-65

National Debt

Ceisteanna (59, 62)

Pearse Doherty

Ceist:

59. Deputy Pearse Doherty asked the Minister for Finance the Exchequer borrowing level per year for the next three years and the promissory note-banking component of this borrowing. [4564/13]

Pearse Doherty

Ceist:

62. Deputy Pearse Doherty asked the Minister for Finance the amount of interest that will be paid this year to service debt and the component of this interest that is bank related debt. [4580/13]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 59 and 62 together.

State support for the banking sector to end-2012 has amounted to approximately €64 billion gross, which includes Exchequer payments, Promissory Note payments in respect of IBRC and EBS, as well as additional funding from the NPRF. The Deputy should be aware that the Exchequer is funded by tax and non-tax revenue and borrowings. No specific tranches of borrowing were undertaken solely for the purpose of recapitalising the banking sector. Therefore, it is not possible to accurately quantify that part of the debt servicing bill that relates to the borrowing undertaken to recapitalise the banks. Budget 2013, published last December, estimated that National debt cash interest expenditure would amount to approximately €7.2 billion in 2013.

With regard to the amount of Exchequer borrowing over the period 2013-2015, Budget 2013 provides the most recent estimates for the Exchequer Borrowing Requirement. It forecasts that the Exchequer Borrowing Requirement in 2013, 2014 and 2015 would be approximately €15.4 billion, €11.5 billion and €7.6 billion respectively. Separately, Promissory Note payments from the Exchequer of €3.1 billion which is comprised of capital and interest payments are profiled for years 2013, 2014 and 2015.

Bank Guarantee Scheme Bond Repayments

Ceisteanna (60)

Pearse Doherty

Ceist:

60. Deputy Pearse Doherty asked the Minister for Finance the value of the remaining guaranteed bonds that remain to be paid. [4565/13]

Freagraí scríofa

Minister for Finance

I assume that in using the term 'guaranteed bonds', the Deputy is referring to bonds covered by the Eligible Liabilities Guarantee Scheme and which are due to mature at a future date. The total value of such bonds as of 25 January, 2013, is approximately €17.3 billion.

Tax Code

Ceisteanna (61)

Patrick Nulty

Ceist:

61. Deputy Patrick Nulty asked the Minister for Finance the amount that would be raised for the Exchequer in a calendar year if pension tax relief was included in the minimum effective tax rate; and if he will make a statement on the matter. [4572/13]

Freagraí scríofa

Minister for Finance

The existing restriction of reliefs or horizontal measure is activated where individuals have an adjusted income of €125,000 and claim specified reliefs of €80,000 or more. Those subject to the full restriction, at adjusted incomes of €400,000 or greater will pay an effective income tax rate of 30% in addition to PRSI and levies. Broadly, the reliefs restricted are the various property based tax incentives and certain other reliefs such as the Employment and Investment Incentive, film relief and the artists’ exemption. The normal deductible items available to the broad range of taxpayers such as medical expenses, personal tax credits and exemptions such as that for child benefit are not restricted. Similarly, normal business expenses and deductions for capital allowances on plant and machinery, as well as genuine business related trading losses are not restricted.

A reliable estimate of the yield to the Exchequer if tax relief on pension contributions was brought within the ambit of the restriction could only be provided by a significant development of the costing model, which would be prohibitive in terms of the resources required. An indicative and very tentative estimate of the full year yield that might arise if contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) were subjected to the restriction could be of the order of €30 million to €40 million. With regard to occupational pensions (schemes set up by employers), the figures in respect of employee contributions are available only in aggregate form and do not provide a basis for compiling a corresponding estimate.

Question No. 62 answered with Question No. 59.

Fuel Rebate Scheme

Ceisteanna (63)

Paul Connaughton

Ceist:

63. Deputy Paul J. Connaughton asked the Minister for Finance if he will consider extending the excise rebate on diesel which was announced for haulage companies in Budget 2013 to passenger transport companies who are under financial pressure at the moment; and if he will make a statement on the matter. [4615/13]

Freagraí scríofa

Minister for Finance

The proposal to introduce an auto-diesel excise duty relief for licensed road hauliers that I announced in the Budget is confined to licensed and tax compliant hauliers. However, I have received a number of submissions from, and on behalf of, private coach operators seeking to have this relief extended to them. I will consider these proposals and the level of the rebate in the context of the Finance Bill. It is worth noting that one of key arguments for introducing a rebate for the haulage industry is the fact that a large quantity of fuel purchased by this industry is purchased abroad thus generating no tax revenue for the State. A rebate should encourage hauliers to start purchasing their fuel in Ireland thus offsetting some of the costs involved. Such an argument does not exist for the most part for the coach industry. The fuel rebate scheme proposed is governed by the terms of Council Directive 2003/96/EC of 27 October 2003 which limits its application to auto diesel used in defined categories of road vehicles.

National Treasury Management Agency Remuneration

Ceisteanna (64)

Pearse Doherty

Ceist:

64. Deputy Pearse Doherty asked the Minister for Finance if staff at the National Treasury Management Agency received bonuses in 2012; if so, the total of the bonuses paid; and if he will provide in tabular form the individual bonuses paid per type of employee. [4652/13]

Freagraí scríofa

Minister for Finance

I am advised by the National Treasury Management Agency (NTMA) that the Agency’s remuneration review in respect of 2012 is currently being finalised.

Departmental Staff Data

Ceisteanna (65, 66, 68)

Pearse Doherty

Ceist:

65. Deputy Pearse Doherty asked the Minister for Finance the number of staff in the shareholder management unit in the Department of Finance; the full year cost of the SMU in 2012; and the budgeted full year cost in 2013. [4653/13]

Pearse Doherty

Ceist:

66. Deputy Pearse Doherty asked the Minister for Finance the number of staff in the Shareholder Management Unit who are seconded to the SMU from the National Treasury Management Agency; and if he will set out in bands of three months the number of secondees and their duration of secondment from the National Treasury Management Agency to the SMU. [4654/13]

Pearse Doherty

Ceist:

68. Deputy Pearse Doherty asked the Minister for Finance the number of persons working in the shareholder management unit in the Department of Finance who are not employees of the Department of Finance or secondments from the National Treasury Management Agency. [4656/13]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 65, 66 and 68 together.

The number of staff in the SMU is 25. Of this number, 10 are on secondment from the NTMA and 10 are Department of Finance employees. The secondment of NTMA employees is not time limited as the NTMA Banking Unit was seconded to my Department for so long as is required by the Department to fulfil its functions in respect of the banking sector. The remaining staff in the SMU are on secondment from AIB. The term of their engagement finishes, on average, in May 2013. Nine NTMA employees were initially seconded to the SMU in August 2011. Additional secondments since then have been, at my request, to increase the number of staff in the SMU and/or replace staff who resigned from the NTMA. The costs of the SMU, borne by the Department of Finance in 2012 were €3.6m and the budgeted cost for 2013 is €4.2m.