Written Answers Nos. 139-152
139. Deputy Ciara Conway asked the Minister for Finance the number of non-residential properties the National Asset Management Agency has control over in Waterford city and county; if he will provide details, in tabular form, of locations and sizes; if some of these properties might be used by local charity and community groups; and if he will make a statement on the matter. [36454/13]
Amharc ar fhreagraNAMA advises that detail on the breakdown of property securing its loans, by asset class and county, is provided in its Annual Report and Financial Statements for 2011, which is available on the NAMA website, www.nama.ie. NAMA is prohibited under Section 99 and 202 of the NAMA Act from disclosing confidential information, including in respect of individual debtor properties. A full list of properties that are subject to enforcement, that is, where an insolvency practitioner has been appointed, is available on NAMA’s website, www.nama.ie/about-our-work/properties-enforced/. This listing is searchable by county. Most of the loans acquired by NAMA from the Participating Institutions are secured on property. NAMA’s interest in this property and in the other assets underlying its loan portfolio is that of a lender holding security for its loan rather than that of an owner. Individuals and groups who have an interest in a property that is under the control of a debtor or receiver are encouraged, therefore, to make contact with the owner of the property or the receiver, if one is in place. They may copy their interest to NAMA at info@nama.ie and the Agency will work to facilitate engagement with their debtors/receivers and, where applicable, sales agents. The Agency ensures that debtors and receivers are aware of any potential purchaser or lessee interest in their properties. NAMA advises that this interest, including from charity and community groups, may often be aligned to the asset strategy identified through the business plan process.
140. Deputy Michael McGrath asked the Minister for Finance if he will provide details for each of the State-supported banks, including Irish Bank Resolution Corporation in liquidation, of the number of employees with remuneration packages between the following: €100,000 and €150,000; €150,001 and €200,000; €200,001 and €300,000; €300,001 and €400,000; and more than €400,000; if he will specify if any such employees have yet taken a reduction in their remuneration on foot of the Mercer report; and if he will make a statement on the matter. [36455/13]
Amharc ar fhreagraAs the Deputy will be aware I provided the following information in response to his Question No. 192 (51096/12) of 20 November 2012.
|
- |
AIB |
BOI |
IBRC |
PTSB |
|
Number of staff on total remuneration package (including pension payments, allowances, expenses and benefits of between €100,000-€200,000 |
1,159 |
1,110 |
190 |
164 |
|
Number of staff on total remuneration package (including pension payments, allowances, expenses and benefits of between €200,001-€300,000 |
85 |
102 |
24 |
11 |
|
Number of staff on total remuneration package (including pension payments, allowances, expenses and benefits of between €300,001-€400,000 |
8 |
32 |
12 |
4 |
|
Number of staff on total remuneration package (including pension payments, allowances, expenses and benefits of between €400,001-€500,000 |
10 |
10 |
0 |
1 |
|
Number of staff on total remuneration package (including pension payments, allowances, expenses and benefits of over €500,000 |
- |
20 |
7 |
0 |
Note 1: The data from AIB and IBRC is as of Nov-12, PTSB’s data refers to Dec-11 while BOI data is as of September 30th, 2012.
Note 2: BOI has estimated total remuneration by taking base salary and adding 26% as an estimate of potential non-salary benefits such as pension provision and allowances. This estimate is in the absence of individualised assumptions and estimates regarding an individual’s usage of/eligibility for certain potential benefits.
More recent information regarding total remuneration can be found in the Review of Remuneration Practices & Frameworks at the Covered Institutions (the “Mercer Report”) which was published by my Department on 12th March 2013. The following breakdown of total remuneration appears on page 43 of that review.
|
- |
AIB |
BOI |
||
|
Number of staff |
Salary |
Remuneration |
Salary |
Remuneration |
|
€300,000 - €399,999 |
7 |
11 |
20 |
34 |
|
€400,000 - €499,999 |
3 |
11 |
12 |
15 |
|
€500,000 or over |
0 |
0 |
6 |
11 |
Note 1: There are differences in data methodology, timing and exchange rates which account for differences in the data presented here and that shown in responses to parliamentary questions. Data for PTSB and IBRC is not shown for reasons of data protection.
As I stated in earlier replies to Parliamentary Questions on this matter I can confirm that the three State supported banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested by the Government in response to the Mercer Report. I was not prescriptive in how this was to be achieved respecting their differing State ownership and investment and paths to profitability.
It is not possible at this stage to reveal precise individual details bar what has been put into the public domain. I can confirm that all three institutions have put forward pension changes to varying degrees as part of their respective overall responses.
As I have said previously I am constrained as to what I can say presently due to commercial sensitivities and perhaps, more critical at this stage, industrial relations concerns as the normal protocols continue and need to be respected and observed by all parties. This is something I have advocated throughout this process. I am anxious, therefore, that all the participants in these discussions are given space and time to conduct these critical negotiations.
At this stage, it would not be appropriate or realistic to specify a timeframe for the savings to be delivered. However, in view of the fact that the three institutions continue to be loss making the timely delivery of such savings which will have an ongoing impact on the cost base is critical to their viability, the availability of credit to the economy and to the future employment prospects of their employees.
141. Deputy Ciara Conway asked the Minister for Finance if he will provide figures on the amount it would cost the Exchequer to designate a two week tax holiday whereby citizens would not pay PAYE in the month of December to facilitate Christmas spending; if he will provide estimates on the potential boost to the economy as a result of this proposal; if he will consider this measure in the context of Budget 2014; and if he will make a statement on the matter. [36456/13]
Amharc ar fhreagraUnfortunately, it was not possible to collate the information required for this answer in the time allowed. I will provide the Deputy with the answer in writing shortly.
142. Deputy Mary Lou McDonald asked the Minister for Finance the staffing levels of the private offices and constituency offices of Ministers and Ministers of State in his Department; the salary of each; the same figures for this time in 2011; and if he will make a statement on the matter. [36500/13]
Amharc ar fhreagraSince my appointment as Minister for Finance on 9 March 2011, the following staff have been appointed to my private office:
|
GRADE |
SALARY SCALE (per annum) |
Wholetime Equivalent |
|
1 Private Secretary |
€29,922 - €56,465 |
1.00 |
|
2 Executive Officers (EO) |
€29,024 - €47,379 |
1.00 |
|
1 Clerical Officer (CO) |
€23,177- €37,341 |
1.00 |
|
2 Clerical Officers (CO) |
€23,042 - €36,267 |
1.00 |
The following staff are assigned to work on constituency matters.
|
GRADE |
SALARY SCALE (per annum) |
Wholetime Equivalent |
|
1 Personal Assistant |
€43,715 - €56,060 |
1.00 |
|
1 Executive Officer (EO) |
€30,516 - €47,975 |
1.00 |
|
1 Clerical Officer (CO) |
€20,859 - €33,607 |
1.00 |
|
1 Clerical Officer (CO) |
€23,042 - €36,267 |
0.40 |
One staff officer has been made available to provide administrative support to my colleague, Mr Brian Hayes, TD Minister of State for Public Service Reform and the Office of Public Works at the Department of Public Expenditure and Reform and Department of Finance.
143. Deputy Mary Lou McDonald asked the Minister for Finance if he will provide the saving to the Exchequer if the pay of all his special advisers, and those of his Ministers of State, were capped at the first point on the principal officer pay scale. [36515/13]
Amharc ar fhreagraIn my Department, I have appointed Mary Kenny and Eoin Dorgan as special advisors. Their salaries are outlined below.
|
Name |
Salary at 30 June 2013 |
Salary from 1 July 2013 (post implementation of the Haddington Road Agreement) |
|
Mary Kenny |
€89,898 |
€84,706 |
|
Eoin Dorgan |
€86,604 |
€81,676 |
The payscales for Principal are outlined below:
|
Date |
- |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
|
01-Jul-13 |
Haddington Road |
€75,647.00 |
€78,670.00 |
€81,676.00 |
€84,706.00 |
€87,258.00 NMAX |
€89,906.00 LSI1 |
€92,550.00 LSI2 |
|
01-Jan-13 |
Budget 2009 |
€80,051.00 |
€83,337.00 |
€86,604.00 |
€89,898.00 |
€92,672.00 NMAX |
€95,550.00 LSI1 |
€98,424.00 LSI2 |
My colleague, Minister Brian Hayes, TD has not appointed a special advisor.
144. Deputy Róisín Shortall asked the Minister for Finance further to Parliamentary Question No. 98 of 2 July 2013 the outcome of his engagement with the National Treasury Management Agency and the Department of Justice on whether or not exemptions to anti-money laundering obligations available under EU Directive may be applied to small value purchases of prize bonds; and if he will make a statement on the matter. [36588/13]
Amharc ar fhreagraOfficials of my Department are continuing to explore with the National Treasury Management Agency (NTMA) whether or not exemptions available under the Third Money Laundering Directive (2005/60/EC) and its Implementing Directive (2006/70/EC) may be applied to small value purchases of prize bonds facilitated on behalf of the State by An Post and the Prize Bond Company.
145. Deputy Michael McGrath asked the Minister for Finance the reduction in tax expenditure that would be achieved from abolishing tax relief for medical and dental insurance; and if he will make a statement on the matter. [36629/13]
Amharc ar fhreagraIt should be noted that relief for qualifying dental insurance policies is allowed as part of the general relief for medical insurance since 2004 and is not identified separately for statistical purposes. On that basis, I am informed by the Revenue Commissioners that the cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia in 2012 is estimated at €448 million. The cost figure above does not include a further cost to the Exchequer of €436 million of the age-related tax relief at source, which was established by the Health Insurance (Miscellaneous Provisions) Act 2009. The cost of the age-related tax credit is offset by a Stamp Duty on health insurance policies. The tax credit and levy were part of an interim scheme of risk equalisation which was introduced in order to provide direct support to community rating in the private health insurance market and is intended to be Revenue neutral over its duration. It expired on 31 December 2012 and was replaced from 1 January 2013 by a permanent risk equalisation scheme, provided for in the Health Insurance (Amendment) Act 2012.
146. Deputy Michael McGrath asked the Minister for Finance the reduction in tax expenditure that would be achieved by phasing out rent relief over two years rather than by 2017 as currently proposed; and if he will make a statement on the matter. [36630/13]
Amharc ar fhreagraSection 473 of the Taxes Consolidation Act, 1997 provides tax relief at the standard rate to individuals who pay for private rented accommodation that is used as their sole or main residence. The level of rent qualifying for rent relief depends on an individual’s marital status and age. In Budget 2011, it was announced that rent relief was being withdrawn on a phased basis. No new claimants were allowed from 7 December 2010 but existing claimants will continue to receive the relief, on a reducing basis, with a complete cessation of the relief from 2018. This is in line with the schedule proposed for the withdrawal of mortgage interest relief. The scheduled withdrawal of rent relief is set out in the following table:
|
Tax Year |
Reduction % |
|
2011 |
20% |
|
2012 |
20% |
|
2013 |
10% |
|
2014 |
10% |
|
2015 |
10% |
|
2016 |
10% |
|
2017 |
10% |
|
2018 |
10% to 0% |
To phase out the remaining 60% of the relief over the next 3 years i.e. 2013 – 2015, would result in the following yields based on the 2010 costs of the scheme. A standard level of reduction of 20% per annum on the remaining maximum levels of relief is assumed.
|
Tax Year |
Reduction % |
Total Yield €M |
Increase in yield over existing reduction €M |
|
2013 |
20% |
49.7 |
8.3 |
|
2014 |
20% |
66.2 |
16.5 |
|
2015 |
20% to 0% |
82.8 |
24.8 |
147. Deputy Michael McGrath asked the Minister for Finance the reduction in tax expenditure that would be achieved by reducing the ceiling on the tax exempt earning of artists from €40,000 to €30,000; and if he will make a statement on the matter. [36631/13]
Amharc ar fhreagraIt is assumed that the imposition of a cap of €30,000 would have the effect of withdrawing the tax exemption from all qualifying income in excess of €30,000. The full year yield to the Exchequer, estimated by reference to the tax year 2010, the latest year for which the necessary detailed information is available, is approximately €1.3 million. However, this figure does not take account of the application of the high income individuals’ restriction to specified reliefs, which includes the artists' exemption and thus the actual yield could be lower. The restriction was originally provided for in Finance Act 2006 and was significantly tightened in Finance Act 2010. Individuals are now subject to the restriction where they have adjusted income of €125,000 and claim specified tax reliefs of €80,000 or more. Those subject to the full restriction now pay an effective income tax rate of 30% in addition to PRSI and Universal Social Charge. In addition, it must be stressed that this estimate assumes no significant behavioural change on the part of the affected taxpayers.
148. Deputy Michael McGrath asked the Minister for Finance the reduction in tax expenditure that would be achieved by abolishing tax relief for medical expenses; and if he will make a statement on the matter. [36632/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer of income tax relief for medical expenses is €127 million in respect of the income tax year 2010, the latest year for which the relevant information is available. On this basis, the full year yield to the Exchequer of abolishing this relief would be of the same order.
149. Deputy Michael McGrath asked the Minister for Finance the saving that would be achieved by reducing the age exemption limit from €18,000 for a single person and €36,000 for a married couple to €17,000 and €34,000, respectively; and if he will make a statement on the matter. [36633/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2013 incomes, of reducing the age exemption limit in the manner mentioned by the Deputy would be of the order of €24 million. It should be noted that, if the age exemption limit for single individuals was reduced in the manner as set out in the question, it would have the effect of ending the limit for such individuals, as it would be more beneficial to be taxed under the normal tax system of credits and bands.
This estimate is derived from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.
It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
150. Deputy Michael McGrath asked the Minister for Finance the saving that would be achieved from abolishing building heritage relief; and if he will make a statement on the matter. [36634/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the estimated full year cost to the Exchequer of income tax relief for expenditure on significant buildings and gardens is €3.9 million in respect of the income tax year 2010, the latest year for which all the relevant information is available. In Finance Act 2010 however, the relief available to passive investors under the scheme was abolished with transitional arrangements applying for the 2010 and 2011 tax years. Therefore with effect from the current tax year, the actual cost of the relief, and therefore the potential yield from its abolition, is expected to be somewhat lower than the €3.9 million cost in 2010.
151. Deputy Michael McGrath asked the Minister for Finance if he will set out, in tabular form, the revenue that would be raised from increasing the universal social charge for PAYE earners and non-PAYE earners by 1%, 2% and 3%, respectively, for earnings above €80,000; and if he will make a statement on the matter. [36635/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, of increasing the universal social charge by either 1 percentage point, 2 percentage points or 3 percentage points for all income earners with incomes in excess of €80,000 is set out in the table below:
|
Rate increase |
Full Year Yield From PAYE Income Earners earning in excess of €80,000 |
Full Year Yield From Non-PAYE Income Earners earning in excess of €80,000 |
|
1% |
€34 million |
€50 million |
|
2% |
€69 million |
€100 million |
|
3% |
€103 million |
€150 million |
The Universal Social Charge is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €80,000.
The estimated yield is based on confining the extension of the new Universal Social Charge rates to the portion of income which is in excess of €80,000, that is, the increase is not applied to the portion of total income earned up to €80,000.
This estimate is derived from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.
152. Deputy Michael McGrath asked the Minister for Finance if he will set out, in tabular form, the revenue that would be raised from increasing the universal social charge for PAYE earners and non-PAYE earners by 1%, 2% and 3%, respectively, for earnings above €90,000; and if he will make a statement on the matter. [36636/13]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the full year yield, estimated by reference to 2013 incomes, of increasing the universal social charge by either 1 percentage point, 2 percentage points or 3 percentage points for all income earners with incomes in excess of €90,000 is set out in the table below:
|
Rate increase |
Full Year Yield From PAYE Income Earners earning in excess of €90,000 |
Full Year Yield From Non-PAYE Income Earners earning in excess of €90,000 |
|
1% |
€28 million |
€46 million |
|
2% |
€56 million |
€93 million |
|
3% |
€85 million |
€139 million |
The Universal Social Charge is an individualised charge and as such, the estimate of yield is based on individual incomes of more than €90,000.
The estimated yield is based on confining the extension of the new Universal Social Charge rates to the portion of income which is in excess of €90,000, that is, the increase is not applied to the portion of total income earned up to €90,000.
This estimate is derived from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.
