Written Answers Nos. 116-133
116. Deputy Joan Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the total amount spent on outsourced cleaning services in his Department; and if he will provide details of the companies providing these services. [8489/13]
Amharc ar fhreagraMy department spent €504,518 on outsourced cleaning services in the State in 2012. The services were provided for office premises occupied by my department in 10 buildings. The companies which provided these services were:
ECO Group Services
Rentokil Initial Limited
E Pak Industries
Spring Grove Services Limited
George Cook and Company Limited
Abbey W.R.S. Waste Management
Panda Waste
The City Bin Company
Cannon Hygienic Products
Keywaste management Limited
Mr. Binman Limited
Thornton Recycling
Cullen and Bohan Limited
Special Care Laundry
Fiber Seal
Parkside Ireland Limited
117. Deputy Robert Troy asked the Minister for Finance if he will introduce a system for persons to pay the household tax in instalments in view of the fact that he is not taking in the ability to pay clause on property; if he will allow persons who do not wish to defer, but have limited means, to pay in instalments; and if he will make a statement on the matter. [7791/13]
Amharc ar fhreagra120. Deputy Brendan Griffin asked the Minister for Finance if he will ensure that a wide range of instalment and payment options will be made available to persons who are liable to pay the property tax. [7775/13]
Amharc ar fhreagraI propose to take Questions Nos. 117 and 120 together.
I am advised by the Revenue Commissioners that, commencing in March 2013, residential property owners will receive their Local Property Tax (LPT) Return from Revenue together with an LPT booklet, which will provide details of the payment options available to pay the tax. The LPT Return must be submitted and payment details provided to Revenue by 7 May, if using the paper return, and by 28 May if using Revenue’s online facility.
I am further advised by the Revenue Commissioners that a wide range of payment options is available to liable persons (including those who qualify for deferral but who wish to pay the tax), which will allow them to pay their LPT liability in full or by way of phased payments. Payment of LPT can be made in full by way of a Single Debit Authority, which is the equivalent of an electronic cheque; by using a debit or credit card online; or in cash through approved payment service providers. There will also be an option to pay the tax for 2013 in equal instalments over the period 1 July to 31 December 2013. Instalment payments can be made by way of deduction at source from employment, occupational pension income or from certain payments made by the Department of Social Protection and the Department of Agriculture, Food and the Marine, by direct debit or also in cash through approved payment service providers.
I am further informed by Revenue that, for 2013, the Single Debit Authority payment will be deducted from the nominated bank account on 21 July 2013. The timing of phased payments depends on the particular payment option chosen such that payments made by way of deduction at source will commence from 1 July 2013 onwards, whereas payments made by direct debit will commence on 15 July 2013 and will be deducted on the 15th day of each month thereafter and phased payments by cash through a payment service provider should be spread equally by the property owner over the period 1 July to 31 December 2013.
The Revenue Commissioners also advise that where any of the phased payment options is chosen, no additional administration or interest charge is imposed by Revenue. Normal transactional charges, however, may be levied by the property owner’s financial institution or by a payment service provider where the property owner chooses to make their payment via a Single Debit Authority, a debit or credit card, a direct debit or by way of cash payments.
Finally, I am satisfied that the range of payment options provided will allow liable persons choose whatever payment option suits their own particular circumstances.
118. Deputy Joe Carey asked the Minister for Finance his plans in relation to exempting from the property tax those that have experienced continuous flooding of their homes; and if he will make a statement on the matter. [7805/13]
Amharc ar fhreagraI refer the Deputy to my answer to Parliamentary Question No. 291 of 5 February 2013 (6061/13). The Finance (Local Property Tax) Act 2012 sets out in detail how the tax is to be administered and how a residential property is to be valued for LPT purposes. There is no specific exemption from the Local Property Tax for the type of cases outlined in the question from the Deputy. I am informed by the Revenue Commissioners that Local Property Tax (LPT) is a self-assessment tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. The impact of serious and regular flooding on a property would be one of the factors that a property owner would take into account in valuing their property.
In addition, one of the advantages of the banding system of values provided for in the legislation is to remove the need for precision in relation to the market value, except for properties worth over €1million. The Revenue Commissioners are preparing valuation guidance and developing a guide to assist liable persons in assessing the value of their property which will take account of location. Where these guidelines are used honestly, together with a liable person’s own knowledge of their property, the property valuation will not be challenged by Revenue in accordance with its normal Customer Service Charter.
119. Deputy Jerry Buttimer asked the Minister for Finance if he will consider implementing a tax relief regime for micro-cider producers similar to the reliefs available for microbreweries; and if he will make a statement on the matter. [7772/13]
Amharc ar fhreagraArticle 4 of Directive 92/83/EEC allows for a lower rate to be applied to beer produced by small breweries. This provision is however specific to beer, and there is no corresponding provision to cover other fermented beverages, including cider. Under EU law (Art 13(2) of Council Directive 92/83/EEC) we are obliged to apply the same rate of excise duty to all other fermented beverages, which include cider. Ireland has however used the option under paragraph (3) of that article, to apply two lower rates to cider below 8.5% vol and 6% vol. A reduced rate of tax for low strength cider was also introduced, with effect from 15 October 2008, for cider of a strength not exceeding 2.8% alcohol by volume, as provided for under Article 5 of the Directive. Under the current EU legislative framework, a reduced rate could not be introduced for cider produced by small operators.
While there is an exemption for small scale cider producers in the UK of up to 7000 hectolitres, I understand that this exemption pre-dates the Directive.
A cider manufacturer's licence is also required for the production of cider on a commercial basis under the Finance (1909-1910) Act 1910.
121. Deputy Brendan Griffin asked the Minister for Finance if he will explore the option of a reduction in capital gains tax which in turn may result in a increase in activity in this sector; and if he will make a statement on the matter. [7777/13]
Amharc ar fhreagraCapital gains tax (CGT) is a transaction tax and a liability can only arise following a transaction giving rise to a chargeable gain. Where there is no transaction, there is no tax. Lowering the rate does not guarantee an increase in the number of transactions. The drop in the CGT yield over recent years can be attributed to declining asset values and a reduction in the number of property and share transactions. In order to protect and enhance the yield it was necessary to increase the CGT rate in Budget and Finance Bill 2013 to 33%. As well as required reductions in expenditure to reduce our budget deficit, some increases in taxation are also necessary. Increasing tax on capital is less damaging for the economy than increasing taxes on income. I do not propose to reduce the rate of CGT for the reasons outlined.
122. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding pension policies; and if he will make a statement on the matter. [7853/13]
Amharc ar fhreagraI assume that the question refers to my Budget 2013 speech, when I announced that I would make provision in Finance Bill 2013 for persons making Additional Voluntary Contributions (AVCs) used to supplement their main scheme retirement benefits to withdraw up to 30% of the value of those contributions. Any amounts withdrawn will be subject to tax at the individual’s marginal rate. The option will be available for 3 years from the passing of the Finance Bill. These provisions were included in Finance Bill 2013, which was published yesterday. This is a restricted measure which will enable rather than incentivize certain individuals to access part of their pension savings beyond their regular or compulsory pension contributions. I do not wish to damage future pension provision and it is important that individuals continue to provide for their retirement. For these reasons, I have no plans to extend the measure beyond AVCs.
123. Deputy Jerry Buttimer asked the Minister for Finance the total amount of tax collected annually by Revenue from benefit in kind taxation of health insurance policies provided to employees by their employers; and if he will make a statement on the matter. [7863/13]
Amharc ar fhreagraI am informed by the Revenue Commissioners that information in respect of benefits-in-kind arising from payment of medical insurance premia is not captured in such a way as to provide a basis for compiling the information sought by the Deputy. Details of taxable benefits are required to be returned in aggregate form only on the P35 return so it is not possible to separately identify different types of benefits.
124. Deputy Michelle Mulherin asked the Minister for Finance if he will extend in the forthcoming finance Bill the excise rebate scheme for road hauliers announced in budget 2013 to benefit passenger transport operators; and if he will make a statement on the matter. [7866/13]
Amharc ar fhreagra126. Deputy Michael Healy-Rae asked the Minister for Finance if a rebate scheme will be provided in the finance Bill and if the rebate will be 13 cent per litre or more; and if he will make a statement on the matter. [7876/13]
Amharc ar fhreagra153. Deputy Michelle Mulherin asked the Minister for Finance if he will extend in the forthcoming finance Bill the excise rebate scheme for road hauliers announced in the budget 2013 to benefit passenger transport operators; and if he will make a statement on the matter. [7991/13]
Amharc ar fhreagraI propose to take Questions Nos. 124, 126 and 153 together.
The proposal to introduce an auto-diesel excise duty relief for licensed road hauliers that I announced in the Budget was, initially, confined to licensed and tax compliant hauliers.
However having received a number of submissions from, and on behalf of, private coach operators seeking to have this relief extended to them, Deputies will now be aware, having seen the Finance Bill, published yesterday, that I have extended the relief to the licensed passenger transport sector. The maximum amount of the relief will be 7.5 cents per litre and will be price dependent.
125. Deputy Noel Harrington asked the Minister for Finance if he will ensure that the Revenue Commissioners will provide a verifiable PPS number to the National Transport Office to enable a person (details supplied) in County Cork who has been unable to work since 1 January to return to making their living; and if he will make a statement on the matter. [7872/13]
Amharc ar fhreagraI am informed by Revenue that they have made contact with the National Transport Authority regarding this case. The taxpayer in question is in possession of a valid PPSN as an employee, but is not recorded as being self-employed. This led to some confusion which has now been resolved, and I understand that a renewed licence has issued to the taxpayer.
127. Deputy Róisín Shortall asked the Minister for Finance if he will clarify whether or not a pensioner couple will be permitted either an exemption or a deferral of the local property tax in circumstances where they have a nominal income which is in excess of the threshold to allow for a deferral of the local property tax but who are availing of the nursing home support scheme under which the pension income of the nursing home patient is reduced by 80%, thereby significantly reducing their net income and rendering the local property tax unaffordable; and the action he is taking to ensure that some kind of discretionary element is built into the local property tax regime so that exceptional cases may be examined. [7881/13]
Amharc ar fhreagraI am informed by the Revenue Commissioners that it is not possible to give a definitive reply based on the information supplied by the Deputy. However, by way of general information, the Finance (Local Property Tax) Act 2012 provides for a number of specific exemptions from the Local Property Tax (LPT) as well as the possibility of deferring the charge in certain cases of inability to pay. Under Section 5 of the Act an exemption may be obtained where a property that was previously occupied by a person as his or her sole or main residence has been vacated by the person for 12 months or more due to long term mental or physical infirmity. An exemption may also apply where the period is less than 12 months, if a doctor is satisfied that the person is unlikely at any stage to return to the property. In both cases, the exemption only applies where the property is not occupied by any other person.
I am also informed by the Revenue Commissioners that where a residential property is the sole or main residence of a liable person who has estimated gross income from all sources of less than €15,000 for a single person or €25,000 for a couple, the liable person(s) will be eligible to apply for full deferral of the LPT charge. To determine whether deferral applies for 2013, liable persons are required to estimate on 1 May 2013 what their total gross income for 2013 is likely to be. Gross income from all sources means income before any deductions, allowances or reliefs that may be taken into account for income tax purposes and includes income that is exempt from income tax and income received from the Department of Social Protection.
In addition, owner-occupiers will qualify for deferral of 50% of the LPT liability where their estimated gross income from all sources is less than €25,000 if they are single and €35,000 for a couple. The balance of 50% of the tax must be paid.
The Finance (Local Property Tax) Act 2012 also contains a number of specific deferral provisions that cater for cases of low income and significant mortgage burden.
I appreciate that there will be some property owners who may find themselves unable to pay LPT but who do not qualify for a deferral under the existing provisions. For this reason, I have brought forward enabling legislation in the Finance (Local Property Tax)(Amendment) Bill 2013, which was published yesterday, to allow for a measure of discretion to be exercised by the Revenue Commissioners in deciding whether to grant a deferral in particular circumstances. The detail of how this type of discretionary deferral will operate and the criteria that will be used to determine eligibility is not set out in this Bill, but instead, will be set out in guidelines that will be published by the Revenue Commissioners before they commence corresponding with liable persons about LPT in March 2013. The type of circumstances that will apply are where a liable person is unable without excessive hardship to pay LPT when it becomes payable as a consequence of a significant and unexpected financial loss or expense. This particular deferral will operate on a different basis to the existing deferral arrangements. It will not automatically be available on the making of a valid claim. Instead, a liable person must apply in writing to the Revenue Commissioners for the deferral and must meet whatever criteria will be set out in the guidelines to be published by the Revenue Commissioners.
128. Deputy Peadar Tóibín asked the Minister for Finance if he will set out in tabular form based on geographical regions, Dublin north west, south east and so on, new lending to small and medium enterprises in the past two years. [7895/13]
Amharc ar fhreagraThe pillar banks report to my Department and to the Credit Review Office on credit on a regional basis but this is commercially sensitive information and I am not in a position to release it. The Central Bank does not publish information on credit on a regional basis. In his tenth quarterly report published on 11 February, the Credit Reviewer said “I have observed no geographic region or trade sector being relatively adversely affected by this contraction in these two banks.”
129. Deputy Michael McGrath asked the Minister for Finance the total number of clients with loans outstanding to Irish Banking Resolution Corporation; the number of loans associated with these clients; the location by country of these loans; the gross value of the loans at origination; their current book value at IBRC; and if he will make a statement on the matter. [7896/13]
Amharc ar fhreagraAs the Deputy will be aware, on 7 February 2013 the Oireachtas passed legislation (Irish Bank Resolution Corporation Act 2013), appointing joint Special Liquidators to IBRC with immediate effect to wind up its business and operations. At this early stage of the special liquidation Special Liquidators are engaged in intensive processes which involve inter alia, asserting control over the businesses, processes, systems and personnel of IBRC. It is important that focus is placed on assessing, reorganising and restructuring the day–to-day activities of the Bank to meet the primary objective of ensuring the purpose of the special liquidation is achieved, as this is key to ensuring that value is extracted from the liquidation.
The Bank/ Special Liquidator is therefore not in a position to provide further information as requested by the Deputy.
It should be noted however that detailed disclosures regarding IBRC’s loan books can be found in the Bank’s last published Annual Report & Accounts as at 31 December 2011 and the 2012 Interim Accounts. I thank the Deputy for his understanding in what is a crucial phase in the liquidation.
130. Deputy Michael McGrath asked the Minister for Finance the projected time horizon over which claims by deposit holders at the Irish Bank Resolution Corporation under the eligible liabilities guarantee would have been paid had the institution not been put into liquidation; the potential maximum cost of such claims; and if he will make a statement on the matter. [7897/13]
Amharc ar fhreagraI have been advised that the deposits held by IBRC at the end of January were €323m. Had IBRC not been liquidated I would expect that these deposits would have been paid in line with their expected contractual maturities. Eligible deposits are covered by the Deposit Guarantee Scheme and the Eligible Liabilities Guarantee schemes. Eligible deposits in IBRC of up to €100,000 for an individual or €200,000 for a joint account are protected by the DGS scheme. Eligible deposits above this are protected by the ELG scheme. The Special Liquidators will provide details of eligible depositors and account balances to the Central Bank. Payments will then be made by cheque within 20 working days of the appointment of the Special Liquidators and will be sent to depositors at the address held by IBRC. The Central Bank will keep customers of IBRC informed by providing regular updates on its website. Claimants covered by the ELG scheme must submit a claim to the NTMA. Claims forms can be found on their website at www.ntma.ie.
131. Deputy Michael McGrath asked the Minister for Finance his views on the time horizon over which the disposal of the Irish Bank Resolution Corporation loan book would maximise the return to the State; if he is concerned that a fire sale of the assets may result in the State missing out on a recovery in asset prices in subsequent years; and if he will make a statement on the matter. [7899/13]
Amharc ar fhreagraThe Deputy will appreciate that it is not possible to be specific in relation to the time horizon for the disposal of IBRC assets. A process has been prescribed which will ensure the optimum value is advanced in the disposal of the assets. Following an independent valuation process, the Special Liquidators will sell the assets of IBRC (which are subject to a floating charge which secures IBRC debt to the Central Bank which will be sold to NAMA) to third parties at or above their independent valuation and failing that the Special Liquidators will sell the assets to NAMA at their valuation price. Third parties including loan counterparties and other financial institutions will be given the opportunity to bid for specific portfolios as part of an open and transparent sales process. If after the independent valuation exercise, the value of the assets sold by the Special Liquidators is not sufficient to compensate NAMA for the amount it paid for the net IBRC debt owed to the Central Bank, then the Minister for Finance will reimburse NAMA for the shortfall. However if the value of the assets is sufficient to repay that debt in full, the Special Liquidator will retain surplus assets for the benefit of other unsecured creditors. This process will ensure that a fire sale of assets will not occur. An assessment of the loans will be made by the Special Liquidator and a decision made in relation to how best to maximise the value of the loans.
132. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the expected impact of the deal on the promissory notes on the projected end of year stock of general government debt and ratio of general government debt to GDP in each year from 2013 to 2016; and if he will make a statement on the matter. [7900/13]
Amharc ar fhreagraAs the Deputy will be aware the Irish Government Bonds that have been issued in exchange for the Promissory Notes are floating rate bonds. The coupon on these bonds is 6-month Euribor plus a margin ranging from 2.50% to 2.68%. Information was released by the Department of Finance last week analysing the impact of the transaction on the general government deficit and debt over the period 2013 – 2015. The table sets out general government debt (GGD) forecasts for the three years 2013 – 2015 based upon no policy change.
Three years is the standard forecast horizon used throughout the EU in budgetary publications and covers the medium term budgetary framework. Accordingly, when the Department publishes the Stability Programme Update in April next it will contain an official forecast for the period out to 2016.
|
General Government Debt Impact |
2013 |
2014 |
2015 |
|
(€M) |
- |
- |
- |
|
GGD per Budget 2013 document |
203,500 |
209,200 |
211,900 |
|
Change in GGD in year |
1,350 |
-1,050 |
-1,100 |
|
Cumulative change in GGD |
1,350 |
300 |
-800 |
|
GGD post-transaction |
204,850 |
209,500 |
211,100 |
|
Pre-Transaction Underlying GGB/Nominal GDP |
121.30% |
120.20% |
116.80% |
|
Post-Transaction Underlying GGB/Nominal GDP |
122.10% |
120.30% |
116.40% |
|
Change |
0.80% |
0.20% |
-0.40% |
Note that the above table showing the GGB and GGD impacts assume that the full portfolio of Government bonds are priced at an interest margin of 270 basis points over 6-month EURIBOR. The Government bond portfolios were ultimately priced at a range of different interest margins over 6-month EURIBOR.
Copies of this material are available on the Department of Finance website under the following links:
http://www.finance.gov.ie/viewdoc.asp?DocID=7543 http://www.finance.gov.ie/viewdoc.asp?DocID=7545
133. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the transactions costs to be incurred in 2013 in relation to the revised promissory note arrangements; the actions he proposes to mitigate these costs; and if he will make a statement on the matter. [7901/13]
Amharc ar fhreagraThe Eligible Liabilities Guarantee (“ELG”) scheme cost is expected to be incurred in 2013. It is estimated that there could be payments under the ELG of c. €0.9 to €1.1 billion. The ELG scheme provides an Irish State guarantee for specific issuances of eligible debt securities by participating institutions and for specific deposits placed with participating institutions. In assessing the impact of this liquidation, it has been assumed that ELG costs of €1.0 billion arise in 2013, i.e., the midpoint of the circa €0.9 billion to €1.1 billion estimated range. There may be a further cost for the Exchequer if it is necessary to make up any difference that might arise between the consideration paid by NAMA for IBRC’s assets and the valuation placed on those assets by the Special Liquidators:
-If the value of the assets sold is not sufficient to compensate NAMA for the bonds it has issued it will be necessary to reimburse NAMA for the shortfall.
-If the value of the assets is greater than the net outstanding borrowings under the Facility Deed, the Special Liquidators will retain the surplus assets for the benefit of unsecured creditors.
Any remaining assets after the unwinding of all secured liabilities will be available for the benefit of the pool of unsecured creditors (including for the Minister for Finance arising from payments made under guarantees, unguaranteed bondholders, suppliers, and sundry liabilities). Whether payments are made to unsecured creditors will depend on the disposal value of IBRC’s assets.
