Thursday, 13 Jun 2013

Written Answers Nos. 53-61

EU Enlargement

Ceisteanna (53)

Maureen O'Sullivan

Ceist:

53. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Foreign Affairs and Trade in view of further EU enlargement with the accession of Croatia in less than two months, the way he intends to address Bosnia's increasing marginalisation as surrounding states begin EU integration; the way he will address concerns of the failure of the Dayton Agreement to develop Bosnia as a strong and unified state; and if he will make a statement on the matter. [28469/13]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

As I have said in this house on a number of occasions, Ireland, and indeed all 27 Member States of the European Union, fully and firmly supports Bosnia and Herzegovina’s EU perspective as a future member state of the EU. It is to be hoped that Croatia’s imminent accession will prove to be an inspiration for the other countries of the Western Balkans, including Bosnia and Herzegovina. Along with international partners, it is the EU's aim to support a stable and viable Bosnia and Herzegovina co-operating peacefully with its neighbours and irreversibly on track towards EU membership. EU membership for Bosnia and Herzegovina is firmly tied to the sovereignty, unity and territorial integrity of the country.

The path to EU membership for Bosnia and Herzegovina is clear. The EU has set out its strategy towards Bosnia and Herzegovina in the European Council conclusions of March 2011 and the successive reinforcing conclusions. Since September 2011 the EU has installed a reinforced and comprehensive presence in the country combining the assets of the European Commission and the European External Action Service, through an EUSR office. The EU military force EUFOR ALTHEA remains present in Bosnia and Herzegovina.

A High Level Dialogue on Accession was launched in June 2012 which saw agreement between the political leaders on a roadmap towards accession. It is regrettable that campaigning in advance of the municipal elections in October last year saw this positive atmosphere eroded.

The EU has made great efforts to encourage the political leaders of Bosnia and Herzegovina to move forward with reforms. There is obvious disappointment that the efforts that the EU has made on the ground to move Bosnia along have reached an impasse. The EU will now need to examine what else can be done and I believe this can best be done in the context of a review of the EU Special Representative’s mandate, which I hope to see taken forward by High Representative Ashton in July.

However, I must emphasise that while we will do everything in our power to encourage movement on the path to EU integration, this is ultimately a matter for the political leaders of Bosnia and Herzegovina. The EU cannot impose a solution. The most we can do is use our policies to encourage and facilitate progress.

Foreign Conflicts

Ceisteanna (54)

Brendan Smith

Ceist:

54. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the further meetings planned at EU Foreign Affairs Council level to discuss the ongoing and escalating conflict in Syria and the humanitarian crisis in that region; and if he will make a statement on the matter. [28567/13]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

The conflict in Syria and the worsening humanitarian situation will figure prominently on the agenda of the next Foreign Affairs Council which I will attend in Luxembourg on 24 June. Recent diplomatic efforts, particularly the initiative of the US and Russia aimed at bringing both sides in Syria to a further peace conference in Geneva on the basis of the Geneva Communiqué of June 2012, will undoubtedly be central to our discussions. With preparations already underway under the guidance of SG Ban and Special Envoy Brahimi, the Council is likely to consider the degree of engagement on all sides with the US-Russia initiative and how the EU can help to ensure that this conference is successfully convened. The renewal of the EU’s sanctions against Syria, including the arms embargo, was extensively discussed at the last Foreign Affairs Council which I attended in Brussels on 27 May. While I regret that the Council was unable to agree to renew the EU arms embargo against Syria, it was noted in the Council Declaration which accompanied the Decision on renewal of the rest of the sanctions package that no member State intending to do so will proceed at this stage with the delivery of arms to Syria. It was agreed that the Council will review its position before 1 August, on the basis of a report from the High Representative on developments related to the US-Russia initiative and on the engagement of the Syrian parties. Syria is likely to figure prominently on the agenda for the first FAC meeting of the Lithuanian Presidency in July.

Passport Applications

Ceisteanna (55)

Bernard Durkan

Ceist:

55. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade if an Irish passport will issue to a person (details supplied) in Dublin 22; and if he will make a statement on the matter. [28587/13]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

The person in question is an Angolan national who recently became a naturalised Irish citizen and subsequently applied for her first Irish passport. However, the name applied for her Irish passport and that appearing on her naturalisation certificate, are in the opposite order to the name that appears on her valid Angolan passport. The Department has been in contact with the applicant and her solicitor in relation to this anomaly. In view of the applicant’s regular use of this passport since 2003, the Department has requested that the person in question regularise this passport error. This would remove any possibility of the use of two passports (Irish and Angolan) with different identities. In the meantime, the Department will issue a restricted two year passport to this person to allow her travel while the matter of her Angolan passport is being rectified at which time a new Irish passport will issue.

International Election Monitoring

Ceisteanna (56)

Brendan Smith

Ceist:

56. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the recent allegations of voting fraud in the Venezuelan presidential election; the efforts being made at an EU level to verify the result; and if he will make a statement on the matter. [28617/13]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

Following Presidential elections in Venezuela, Nicolas Maduro was inaugurated as President on 19th April 2013. The election process was closely contested, with the Venezuelan National Electoral Commission recording President Maduro ahead of the leading opposition candidate, Henrique Capriles, by 1.49%. The European Union is monitoring closely developments in Venezuela. Following the April Presidential elections, the EU High Representative Ashton called upon all parties to engage in peaceful dialogue and to reject violence. While commending the high participation and orderly, calm conduct of the elections, EU High Representative Ashton expressed concern at the growing polarisation of Venezuelan society. She added that it is important that the outcome of the vote can be accepted by all and that appeals be duly considered by the competent Venezuelan authorities. Following a full audit of the April elections, on 11th June last the National Electoral Commission confirmed the result in favour of President Maduro. I understand that Mr Capriles has been very critical of this audit process and may continue to pursue his appeal against the result through legal channels.

I join with the EU High Representative Ashton in calling upon all parties in Venezuela to engage constructively in the promotion of good governance. It is important in all democratic societies that citizens have confidence in their institutions and that any allegations of irregularity in elections be addressed fully by the relevant authorities through appropriate appeal mechanisms.

Tax Yield

Ceisteanna (57)

Pearse Doherty

Ceist:

57. Deputy Pearse Doherty asked the Minister for Finance the reason the corporation tax figures in the end of May Exchequer statement show a significant reduction in year-on-year figures. [28399/13]

Freagraí scríofa

Minister for Finance

Corporation tax (CT) receipts to end-May, at €1,042 million, were €150 million (16.8%) ahead of profile and €60 million (5.5%) down year-on-year. This year-on-year reduction at this stage of the year was expected, as it was due entirely to the impact of the delayed €251 million CT payment received in 2012, which was reported on extensively by my Department throughout 2012. As the Deputy may recall, CT receipts in January 2012 benefited from a significant delayed payment proper to December 2011. This significantly distorted the year-on-year comparisons of CT in 2012. In light of this, CT was reported on extensively both on an adjusted basis, as well as on a headline basis, throughout 2012.

The distortionary impact of the delayed CT payment on 2013 year-on-year comparisons was again highlighted in the Exchequer Returns information note for January 2013. Adjusting for impact of the delayed CT payment, receipts were up €191 million (22.4%) to end-May 2013 on an adjusted basis, a very encouraging performance.

Tax Yield

Ceisteanna (58)

Pearse Doherty

Ceist:

58. Deputy Pearse Doherty asked the Minister for Finance the reason less VAT was collected than expected as per the end of May Exchequer statement. [28400/13]

Freagraí scríofa

Minister for Finance

VAT receipts to end-May, at €4,994 million, were €117 million (2.3%) below profile and €15 million (0.3%) up year-on-year. The Revenue Commissioners have made my Department aware that the shortfall recorded in the first five months of the year is largely attributable to receipts from VAT on imports, and not VAT internal receipts, which are more closely related to domestic economic activity. I would like to assure the Deputy that my Department is continuing to monitor the situation closely.

Tax Yield

Ceisteanna (59)

Pearse Doherty

Ceist:

59. Deputy Pearse Doherty asked the Minister for Finance the reason less income tax was collected than expected as per the end of May Exchequer statement. [28401/13]

Freagraí scríofa

Minister for Finance

Income tax receipts to end-May, at €6,122 million, were €55 million (0.9%) below profile and €125 million up year-on-year. Income tax receipts in the month were basically on target, recording a small surplus of €4 million (0.3%) against a target of €1,075 million. As the Deputy may be aware, Income Tax comprises of a number of individual sub-heads, including PAYE and non-PAYE, which includes Schedule D (paid by farmers and the self-employed), as well as other relatively minor sources such as DIRT, Withholding Tax and Dividend Withholding Tax.

Of these sub-heads, the primary driver for the cumulative shortfall against profile was the lower than expected DIRT receipts recorded in April last, which is possibly reflective of the lower retail interest rates recorded in the year to date. This was discussed in the end-April 2013 Exchequer Returns information note.

Fiscal Policy

Ceisteanna (60)

Catherine Murphy

Ceist:

60. Deputy Catherine Murphy asked the Minister for Finance if in the event of the State ever being required to make a fiscal correction within the meaning of section 6 of the Fiscal Responsibility Act 2012, whether the measures to achieve such a correction, as set out in a plan under section 6(1) of the Act, would be undertaken via primary legislation or through secondary legislation adopted under section 9 of the Act; and if he will make a statement on the matter. [28510/13]

Freagraí scríofa

Minister for Finance

A correction plan, within the meaning of Section 6 of the Fiscal Responsibility Act 2012, is only relevant in the event of a significant deviation from the medium-term budgetary objective, or where relevant the adjustment path towards it, and exceptional circumstances do not apply. This is not envisaged to occur at any point over the forecast period. If the State is required to prepare a correction plan in the future, such a plan would take into account the causes of the significant deviation.

Measures to achieve such a correction would not be introduced through secondary legislation under Section 9 of the Fiscal Responsibility Act 2012.

Any correction plan presented to the Dáil would be implemented primarily through budgetary legislation, which can be supplementary if the timing of the plan warrants it. There is provision to introduce a Finance Bill, Social Welfare Bill or expenditure estimates at any time. If the correction plan sets out a multi-year correction, then;

- Multi-annual revenue measures can be made through Finance or Social Welfare Bill amendments; and

- The element related to Government expenditure (about 90% of Ireland’s total general government expenditure) would be directly reflected in the Government expenditure ceiling which is being put on a statutory basis under the Minister and Secretaries (Amendment) Bill 2012.

Depending on the measures to be taken, other relevant legislation may need to be amended. If the correction plan includes other sub-sectors of general government such as Local Government then budgetary adjustments would be made in accordance with relevant legislation.

Prize Bonds

Ceisteanna (61)

Tony McLoughlin

Ceist:

61. Deputy Tony McLoughlin asked the Minister for Finance the savings the National Treasury Management Agency will incur from the proposed cut in the national prize bonds draw; the way these savings will be used on behalf on the State; and if he will make a statement on the matter. [28512/13]

Freagraí scríofa

Minister for Finance

The National Treasury Management Agency (NTMA) is responsible for the State Savings schemes which include Savings Certificates, Savings Bonds, Prize Bonds, the National Solidarity Bond and Instalment Savings, as well as the Deposit Accounts such as the Ordinary Deposit Account and the Deposit Account Plus which are managed on behalf of the NTMA by An Post. The NTMA keeps the suite of State Savings products and the interest rates paid on them under constant review to ensure that the products remain competitive and attractive to retail investors, while balancing the funding requirements and financing costs of the State.

The NTMA announced on 2 June 2013 new rates across the range of State Savings products, including Prize Bonds. These reflect the reductions in interest rates in the savings market generally and the reduced cost of Government borrowing in the wholesale markets as a result of the declines in sovereign bond and Treasury Bill yields.

The value of the prize fund for the Prize Bond draw is calculated by applying the prevailing variable interest rate to the value of prize bonds outstanding. On 2 June 2013, the rate used to calculate the prize fund was reduced from 2.25% per annum to 1.75% per annum.

At end-May 2013, €1.78 billion of prize bonds were outstanding. The savings over a full year as a result of the 0.5% reduction in the interest rate used to calculate the prize fund would be €8.9 million (assuming the amount of prize bonds outstanding remains unchanged). This would represent a saving to the Exchequer in the cost of servicing the National Debt and would accordingly be of benefit to the Exchequer finances.