Written Answers Nos. 86 - 96
86. Deputy Michael McGrath asked the Minister for Finance if any former employee of AIB who left the bank as part of the voluntary redundancy arrangements has since rejoined the bank as an employee or is doing work for the bank as a self-employed contractor either here or overseas; and if he will make a statement on the matter. [17755/13]
Amharc ar fhreagraAIB has informed me that as part of the Bank’s exit process, all early retirement and voluntary severance offers include a clause which precludes the staff member from being re-hired by AIB or any of its subsidiaries, either directly or indirectly through a third party. In the case of early retirement the restriction is open ended. In the case of voluntary severance the restriction applies for a period of four years from the date of termination. Controls are in place within AIB to ensure that any such re-hires do not occur on the AIB payroll. I understand that AIB has retained the services of a total of four individuals post retirement, immediately after their exit dates, solely for the purpose of concluding two projects of significant consequence from a regulatory and financial standpoint. These individuals were subject matter experts, who were engaged on the projects prior to retirement. Permission was sought from the Revenue Commissioners in advance of their appointment. This is in the context of approximately 1,700 staff leaving AIB in 2012 as part of the early retirement and voluntary severance programme.
87. Deputy Michael Healy-Rae asked the Minister for Finance the position regarding a plan (details supplied) for the bank sector; and if he will make a statement on the matter. [17756/13]
Amharc ar fhreagra90. Deputy Brendan Griffin asked the Minister for Finance his views on a matter regarding retrospective reimbursement of banking debts (details supplied) [17819/13]
Amharc ar fhreagraI propose to take Questions Nos. 87 and 90 together.
Support for the establishment of a European Banking Union was given at the highest political level at a Summit of Heads of State & Government of the Euro Area in June of last year. In September the European Commission presented legislative proposals for a single supervisory mechanism (SSM) conferring powers on the ECB for the supervision of all banks in the euro area, with a mechanism for non-euro countries to join on a voluntary basis. The SSM is a key element of the Banking Union along with a common resolution framework and national deposit guarantee schemes. The Member States have reaffirmed their commitment to the urgent completion of all elements of Banking Union as set out by the European Council.
The Banking Union package is a priority of the Irish Presidency of the EU Council. An important step to a European Banking Union to break the link between sovereigns and banks was agreed by Ecofin Ministers in Dublin last week when they reached agreement on the creation of the Single Supervisory Mechanism. This is a major step towards ensuring financial stability, and thus facilitating growth. Earlier in 2013 the Irish Presidency concluded negotiations with the European Parliament to finalise the Capital Requirements Directive IV which is another essential element of the Banking Union programme. Another important element of the Banking Union package is the development of an operational framework for the direct recapitalisation of banks by the ESM which should include the definition of legacy assets. A Task Force of Member States has been meeting regularly since October 2012 and it expected that the ESM instrument guidelines will be finalised by end June.
The Commission’s proposal for a common resolution framework mentioned above includes provision for resolution funds to be used for supporting orderly resolution of banks in distress. It proposes that national resolution funds would interact, notably to provide funding for resolving cross-border banks. The proposal also suggests giving national resolution funds a right to borrow from their counterparts in other Member States in the event that there are insufficient funds in their own resolution fund. This right to borrow would be complemented with an obligation to lend to other funds within the Union. Safeguards would be in place to ensure that no national fund would be obliged to lend in circumstances where it wold not have sufficient funds to finance a resolution in its own territory in the foreseeable future or where the loan required would exceed more than half of the available funds in the lending Member States resolution fund. The Commission’s proposal is currently being examined intensively at Council under the Irish Presidency.
In the domestic area the Programme for Government included commitments to introduce a comprehensive special resolution regime for banks and a bank levy. The Government has fulfilled these commitments through the Central Bank and Credit Institutions (Resolution) Act and the Resolution Fund established under it. The Resolution Fund provides a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of, an authorised credit institution. The levy contributions by credit institutions under Regulations made under the Act feed into the Resolution Fund. The Resolution Fund will primarily be made up of contributions from credit institutions. The overall objective is to minimise taxpayers’ exposure to future financial sector difficulties.
88. Deputy Nicky McFadden asked the Minister for Finance his views on correspondence (details supplied) from ordinary bank workers in response to the Mercer Report; if he will acknowledge the importance of separating the treatment of ordinary bank workers from senior executives; and if he will make a statement on the matter. [17796/13]
Amharc ar fhreagraWhen publishing the Review of Remuneration Practices and Frameworks at the Covered Institutions, on 12 March 2013, I indicated that the Government had formed the view that with the remaining covered institutions still incurring losses it was an inescapable conclusion that the cost base of the institutions needs to be reduced further. This is essential if they are to return to profitability, be in a position to support the economy and repay the State’s investment through a return to private ownership. On behalf of the Government, I have now directed the banks to come up with plans as to how they intend to address this issue in a manner that can help meet the State’s objectives. I expect the value of those plans to mean a saving of 6% - 10% of total remuneration costs, through reductions in payroll and pension benefits, new working arrangements and structures that deliver efficiency gains. Tackling the cost base is of course only one of many goals that need to be achieved but combined with other measures will deliver the required results.
I, and the Government, acknowledge that the sacrifices and changes made by bank employees to date at all levels and recognise that this has been achieved without major industrial unrest in what is a critically important sector. However, it can never be forgotten by management and employees of these banks – both past and present – that without enormous cost to Irish taxpayers these institutions would not have survived and that this needs to be borne in mind during future discussions. If remuneration costs are to be reduced with the aim of a return to profitability then sacrifices at all employee levels will be required.
89. Deputy Michelle Mulherin asked the Minister for Finance further to Parliamentary Question No. 84 of 6 March 2013, wherein he pointed out that the Revenue Commissioners may only grant a liquor licence to a person when that person has presented a Court Certificate to them within twelve months of the date it was issued by the Revenue Commissioners, the reason they are now refusing to issue a liquor licence to persons (details supplied) in County Mayo who furnished an original current Court Certificate in November 2012 and instead are considering other matters than those provided for pursuant to Section 39 of the Intoxicating Liquor Act 2000 where the applicant has presented the Court Certificate in accordance with the statutory provisions; and if he will make a statement on the matter. [17808/13]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the procedure following the grant of a Licence by Court Order is for the Licensee to obtain a Court Certificate from the Court Office. This Court Certificate must be submitted to the Revenue Commissioners, within 12 months of the date on which it was issued. The Revenue Commissioners will then issue the Licence, subject to tax clearance being in place. In the case in question, the Licence lapsed on the 30th September 2001 and was not renewed. A subsequent application to the Courts in 2005 resulted in the issue of a draft Court Order dated 5th July 2005. This Court Order was presented to the Revenue Commissioners in May 2006. A Licence dated 24th May 2006 issued (albeit erroneously in the absence of a Court Certificate) with an expiry date of 30th September 2006. This Licence was not subsequently renewed and lapsed again on the 1st October 2007. Trading ceased when the premises was subsequently closed by An Garda Síochána.
Subsequent to this, the applicant made a request to the Court Service for the Court Certificate relating to the 2005 Court Order. A Court Certificate, dated the 5th July 2005, stamped by the Circuit Court office on the 18th April 2012, was received by Revenue on 9th May 2012 with a request to issue a Licence.
The position is that the original Court Order dated 5th July 2005 was acted upon, on the 24th May 2006 and is deemed “spent”. The request for a Licence was therefore refused on this basis.
91. Deputy Eoghan Murphy asked the Minister for Finance his views on considering amending Section 469 of the Taxes Consolidation Act 1997 (1) under Health Expenses to simply read Physiotherapy. [17826/13]
Amharc ar fhreagraIncome tax relief in respect of health expenses is allowable in accordance with section 469 of the Taxes Consolidation Act 1997. This legislation provides for tax relief for health expenses incurred in the provision of health care. Health care is defined for the purposes of that legislation as the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability and includes care received by a woman in respect of pregnancy. Health care does not include routine ophthalmic or dental treatment. The section provides that tax relief must be either for the costs of the services of a practitioner, defined as a person registered on the register established under the Medical Practitioners Act 2007, or diagnostic procedures carried out on the advice of a practitioner, which includes “physiotherapy or similar treatment prescribed by a practitioner”. Eligibility for tax relief is limited to expenses relating to treatment considered necessary and appropriate by a qualified practitioner.
Section 469 of the Taxes Consolidation Act 1997 consolidated all previous legislation pertaining to relief for health expenses, in particular section 12 of Finance Act 1967 which introduced the relief in the first instance. This section also required that physiotherapy or similar treatment be prescribed by a practitioner before qualifying for relief. This requirement has, therefore, been part of the qualifying criteria since the introduction of relief for health expenses and I am advised by the Revenue Commissioners that guidance and instructions to staff have remained unchanged in this regard.
For 2010 the cost of tax relief for health expenses was €127 million and was availed of by 368,000 individuals who had sufficient income to benefit from a claim. There is no specific breakdown in these figures of the costs related to physiotherapy.
If self-referral for physiotherapy were allowed, an estimate of the additional cost would be unquantifiable, but, undoubtedly, it would increase the overall cost of health expenses relief to the Exchequer. While the Government supports measures to lower the cost of medical treatment which should in turn lower the costs of health care provision by the State, an extension of the relief along the lines proposed would inevitably lead to calls for other treatments to similarly qualify for relief, which would greatly increase the overall cost of the scheme.
I would point out that this issue was raised during the debates in the Seanad on Finance Bill 2013 during which I agreed to re-examine the matter during the course of this year.
92. Deputy Peter Mathews asked the Minister for Finance if consideration has been given to a matter (details supplied) in respect of the local property tax; and if he will make a statement on the matter. [17875/13]
Amharc ar fhreagraThe requirement for owners of multiple properties to file and pay their Local Property Tax (LPT) electronically is contained in section 44 of the Finance (Local Property Tax) Act 2012 (as amended). I am informed by the Revenue Commissioners that a significant number of multiple property owners are already obliged, by virtue of the Taxes Consolidation Act 1997, to pay and file their tax returns electronically and section 44 is in keeping with the overall eGovernment Strategy and Revenue’s strategic objective to encourage the use of electronic channels. Revenue has developed a secure on-line system for filing LPT Returns that is user friendly and easily accessible on the Revenue website. From the taxpayer’s perspective, using the on-line system is the quickest and most straightforward way to complete and submit their LPT Returns, particularly so where there are multiple properties involved, as the system automatically calculates the LPT due for the individual properties, makes it easy to select a payment method from the wide range of options available and provides immediate access to Revenue’s on-line valuation guide. In addition, property owners who file their LPT Returns on-line will also benefit from a three-week extended filing deadline to 28 May 2013.
Section 36 of the Act allows a Return to be made by any person authorised to do so by a liable person. For example, a property owner may nominate a relative such as their son or daughter to file and pay on-line.
I am further advised that Revenue announced yesterday that, where none of these arrangements are suitable for owners of multiple properties, they can call the LPT Helpline 1890 200 255 to pay and file their LPT on-line. Before calling the LPT Helpline, owners should ensure that they have the necessary information: their PPSN, property details (including Property ID, PIN code and valuation band for each property) and details of their bank account or other source from which the LPT will be deducted.
93. Deputy Sean Fleming asked the Minister for Finance the number of persons who will be liable for the local property tax on a single residential property; the number of letters issued by the Revenue Commissioners to date; when all letters will be issued; and if he will make a statement on the matter. [17922/13]
Amharc ar fhreagraI am informed by the Revenue Commissioners that a key aspect of the work that they have undertaken in connection with Local Property Tax (LPT) has been the development of a comprehensive Register of residential properties in the State which is the cornerstone of the new tax. The Register was developed using data drawn from a range of sources including Revenue’s own databases, the Local Government Management Agency database and data from utility companies. This Register has been used to issue correspondence to property owners and by 16 April 2013, Revenue had issued 1.29 million letters to owners of 1.6 million properties. According to the Register there are 1.13 million owners who will be liable to pay the tax on a single residential property. It is expected that letters will issue this week to owners of approximately 35,000 properties. Given the scale of the task involved and the multiple sources that have been used to create the Register, I am informed that the Revenue Commissioners are continuing to update the Register with new cases as they come to light, and letters will continue to issue to newly identified property owners as a result. I am further advised by the Commissioners that where an owner is not on Revenue’s Register a return will not issue. However, the owner is still obliged to complete and file a Return by the relevant deadline (7 May for paper filers and 28 May for electronic filers).
As part of its media campaign, Revenue will advise property owners this week that, if they have not yet received a Return from Revenue, they should contact Revenue’s LPT Helpline on 1890 200 255 or access the online system on Revenue’s website to file their LPT Return. I am also advised that even where a property owner has not received a Property ID and PIN code from Revenue, they will still be able to file their Return online.
94. Deputy Eric Byrne asked the Minister for Finance the position regarding the local property tax and its collection and distribution (details supplied); and if he will make a statement on the matter. [17956/13]
Amharc ar fhreagraSection 157 of the Finance (Local Property Tax) Act 2012 (as amended) provides, that commencing in 2014, the Minister shall pay into the Local Government Fund an amount equivalent to the Local Property Tax (LPT) (including any interest paid thereon) from the Central Fund or the growing produce thereof during that year. The allocation of funding to local authorities, as well as criteria in assessing such allocation, is properly a matter for my colleague the Minister for the Environment, Community and Local Government. The Government has accepted, in principle, a policy position that from next year 80% of all Local Property Tax (LPT) receipts should be retained within the local authority areas where the properties are based. The remaining 20% of the LPT collected nationally will go to the Local Government Fund, which will continue to provide funding to local authorities on a needs and resources basis.
Income from the LPT will accrue to the local authorities to fund local services. It will be the responsibility of each individual local authority to manage its budget and to allocate funds to services as appropriate.
95. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare can be issued to a person for 2013; and if he will make a statement on the matter. [17959/13]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that an application can be made on line for a Tax Clearance Certificate on www.revenue.ie. In the case of a PAYE employee a Form TC11 can be submitted to the appropriate Revenue Office. A Tax Clearance Certificate can only be issued to a person whose tax affairs are in order at the date of issue of that Certificate. In relation to the particular case referred to by the Deputy, Revenue has no record of receiving an application for a Tax Clearance Certificate.
96. Deputy Thomas P. Broughan asked the Minister for Education and Skills the locations in 2010, 2011, 2012 and to date in 2013 that FÁS pays rent on a building it rents; the length of time remaining on each building it rents; and if he will make a statement on the matter. [17763/13]
Amharc ar fhreagraThe following table provides the details requested. The significant decrease between 2011 and 2012 is attributable to the transfer of property related to the FÁS Employment Services to Department of Social Protection at the start of 2012.
FÁS - Locations of Rented Properties 2010-2013
|
County |
2010 |
2011 |
2012 |
2013 |
|
Carlow |
1 |
1 |
0 |
0 |
|
Cavan |
1 |
1 |
0 |
0 |
|
Clare |
4 |
4 |
3 |
3 |
|
Cork |
5 |
5 |
1 |
1 |
|
Donegal |
1 |
1 |
0 |
0 |
|
Dublin |
20 |
18 |
4 |
4 |
|
Galway |
5 |
5 |
2 |
2 |
|
Kerry |
7 |
6 |
3 |
3 |
|
Kildare |
3 |
3 |
0 |
0 |
|
Kilkenny |
2 |
2 |
0 |
0 |
|
Laois |
1 |
1 |
0 |
0 |
|
Leitrim |
1 |
1 |
0 |
0 |
|
Limerick |
11 |
10 |
6 |
6 |
|
Longford |
1 |
1 |
0 |
0 |
|
Louth |
3 |
3 |
1 |
1 |
|
Mayo |
5 |
5 |
2 |
2 |
|
Meath |
1 |
1 |
0 |
0 |
|
Monaghan |
1 |
1 |
0 |
0 |
|
Offaly |
4 |
4 |
1 |
1 |
|
Roscommon |
1 |
1 |
0 |
0 |
|
Sligo |
1 |
1 |
0 |
0 |
|
Tipperary |
3 |
3 |
0 |
0 |
|
Waterford |
11 |
11 |
10 |
10 |
|
Westmeath |
5 |
4 |
1 |
1 |
|
Wexford |
4 |
3 |
0 |
0 |
|
Wicklow |
2 |
1 |
0 |
0 |
|
Total |
104 |
97 |
34 |
34 |
Notes:
17 properties are leased on an annual roll-over basis
1 property will expire within one year
1 property will expire within three years
8 properties will expire within four years
3 properties will expire within five years
2 properties will expire within six years
2 properties will expire within seven years
