Written Answers Nos. 79-85
79. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which a reimbursement has been made in respect of misspent Irish aid to Uganda; and if he will make a statement on the matter. [8595/14]
Amharc ar fhreagraIn October 2012, all Irish development assistance due to be channelled through Government of Uganda systems was suspended, following the discovery of fraud in the Office of the Prime Minister. Since then the Government of Uganda has refunded in full the €4 million of Irish Aid funds which were misappropriated.
Ireland continues to press the Government of Uganda for concerted action following the fraud. To date, 26 Government officials and 31 private firms are being investigated, 6 Government officials are facing trial and 1 conviction has been secured. In total, the Ugandan Director of Public Prosecutions has opened over 100 case files which are being followed closely by our Embassy in Kampala. In addition, the Office of the Auditor General of Uganda has been conducting follow-on inquiries and audits, with the support of our Embassy in Kampala. While I was in Kampala in December I had a very positive meeting with the Auditor General and his key staff and he outlined clearly his determination to address issues of fraud and corruption in the public domain.
Ireland’s 2014 country programme in Uganda, which focuses on education, HIV and AIDS, gender-based violence, governance and livelihoods, is built around supporting projects and programmes which operate through trusted non-government systems. In addition, we are continuing to provide direct support to the Office of the Auditor General which uncovered the original fraud at the Office of the Prime Minister.
We continue to ensure that strong financial oversight of the aid programme is in place in order that the valuable contribution made by Ireland towards improving the lives of some of the most vulnerable people is maintained, while at the same time providing strong assurance and accountability to the Irish taxpayer.
80. Deputy Dara Calleary asked the Minister for Finance the number of customs officials assigned to the illegal drug section in counties Mayo and Sligo; the measures taken for the protection of the western seaboard from illegal drug smuggling; and if he will make a statement on the matter. [8560/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that their office is an integrated tax and customs administration and it is not feasible to dis-aggregate the staffing resources deployed exclusively on Customs and Excise or drugs enforcement work. The Revenue Commissioners have around 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These activities include anti-smuggling, audit, assurance checks, debt management, investigations, prosecutions and anti-avoidance.
The Revenue Commissioners attach the highest priority to combating the smuggling of controlled drugs and are committed to playing an active role, in conjunction with other relevant agencies, in working against this criminal activity and those responsible for it.
Revenue has primary responsibility for the detection, interception and seizure of controlled drugs at points of entry into the State. They maintain an enforcement presence at strategic locations and place particular emphasis on developing an intelligence-based focus at both national and regional level, deploying resources to areas of highest risk. Enforcement strength at particular locations is regularly augmented with additional personnel on a risk-assessment basis, or when particular operations are taking place against illegal activity.
Responsibility for controlled drugs interdiction at ports and airports on the West coast is not confined to staff at Sligo and Mayo but is shared among Revenue staff at several locations. Revenue enforcement officers carry out regular and ongoing monitoring of the coastline, including patrols and physical checks at harbours and piers. This work is supplemented by Revenue's Customs Drug Watch Programme, which incorporates a coastal reporting mechanism. This allows members of the public, maritime and local communities to report, in confidence, suspect or unusual movements at sea or around the coast through a confidential 24/7 free phone facility.
Revenue deploys two Customs Cutters, the RCC Suirbhéir and the RCC Faire, to patrol the coastline and undertake maritime intelligence gathering duties. These vessels support teams of land-based enforcement officers involved in anti-smuggling duties. The cutters are deployed to cover potential high-risk areas along the coastline.
Revenue has two drug detector dog teams based on the western coast, at Sligo and Shannon, which are deployed over the wider geographical area as necessary. Overall, Revenue has 13 detector dogs at its disposal (8 of which are specifically trained in drugs detection) and these dogs can be deployed to any location as required on a risk-assessment basis.
Revenue's Customs service works proactively with An Garda Síochána and the Naval Service in the fight against drug trafficking as part of the Joint Task Force on Drugs Interdiction. There is excellent cooperation between these agencies in the sharing of intelligence and the identification and investigation of the criminals involved in the illegal drugs trade.
The Deputy will be aware that Revenue's overall staff numbers have been reduced in recent years in the context of Government policy on civil service numbers. However, the Revenue Commissioners assure me that their enforcement resources have been prioritised and are reinforced as necessary for particular operations.
Revenue's work against drugs crime is extensive and multifaceted and is kept under constant review to ensure that it makes the most effective contribution possible to dealing with this societal problem.
81. Deputy Pearse Doherty asked the Minister for Finance the total remuneration package received by the chief executive officer of Allied Irish Bank for 2013; and the remuneration that has been promised for 2014. [8399/14]
Amharc ar fhreagraAIBs disclosures in relation to directors remuneration are made annually as part of AIBs Annual Financial Report. The remuneration of the Chief Executive Officer as an executive director is included in this. The remuneration data for 2013 will be available following the release of AIBs 2013 Annual Financial Report later this quarter.
The most recent disclosures on directors' remuneration for 2012 are contained on page 316 of AIBs 2012 Annual Financial Report which is available on AIBs website at www.aibgroup.com/investorrelations. In 2012 the total remuneration package for the CEO of AIB was €546,000 and it should be noted that this amount only partially reflected a 15% pay cut implemented from 1 September 2012.
The Chief Executive Officer's remuneration, as with all AIB employees, is within the Government's limits on pay and benefits and my Department has neither been informed nor approved of any change for 2014.
82. Deputy Kevin Humphreys asked the Minister for Finance the price the National Asset Management Agency realised for the site of five acres on the Merrion Road beside Booterstown nature reserve when the agency sold it in March 2012; the value of the underlying loan on the property at the time; if it was sold on the open market; the reason the offer from Dublin City Council and Dún Laoghaire County Council were not taken into consideration in view of its potential as a social dividend; if his attention has been drawn to the fact that it is for sale again at a multiple of the price realised by NAMA; and if he will make a statement on the matter. [8441/14]
Amharc ar fhreagraI would remind the Deputy that, as Minister for Finance, I have no role in the day-to-day detail of NAMA's sales strategy. It would not be appropriate for me to comment further on an individual property or transaction. The asset was sold by the appointed Receiver after being openly marketed. What a purchaser does thereafter is a matter for him or her.
On the general social dividend point, Section 10 of the NAMA Act statutorily obliges NAMA to 'obtain the best achievable return for the State' from the management or its acquired loan portfolio. NAMA is obliged to carry out its functions in the context of the overriding commercial objective provided for by Section 10 of the Act and to recover the greatest amount possible for the taxpayer from the sale of loans and properties securing its loans.
As part of ensuring this, it is NAMA's clear policy that properties and loans that are for sale are openly marketed. This ensures a competitive and transparent sales process and the best possible financial returns for the taxpayer.
Importantly however, the NAMA Board has committed to giving first refusal to any public authority, including Government Departments, State agencies and local authorities, in respect of the purchase of property from NAMA debtors and receivers which may be suitable for their purposes.
83. Deputy Derek Nolan asked the Minister for Finance if he will broaden the remit of those businesses who benefit under the special VAT rate of 9% for beauticians working in the tourism industry; and if he will make a statement on the matter. [8454/14]
Amharc ar fhreagraVAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. While most tourist related services are subject to the 9% reduced VAT rate, it is not possible to extend this treatment to all tourist activity, such as beauticians working in the tourism industry.
While hairdressing services apply at the 9% rate, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate. This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as we applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as 'parked' items, and are provided for under Article 118 of the EU VAT Directive. As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.
It is for this reason that the 9% VAT rate applies in respect of tourist activities such as restaurant and hotel accommodation services, while other tourist activities such as tour guide services and the short-term hire of cars, boat, caravans and mobile homes are liable to VAT at the 13.5%. However, it should be noted that in the majority of EU Member States services consisting of the care of the human body apply at their standard VAT rate of up to 27% in some cases, compared to 13.5% in Ireland.
84. Deputy Damien English asked the Minister for Finance if he will give consideration to allowing those who have personal retirement bonds on a once-off basis to draw down a certain percentage of the accumulated value of their PRB contributions, similar to the window of opportunity afforded to holders of certain additional voluntary contribution pension schemes who, from the date of the passing of the Finance Act 2013, can opt to draw down up to 30% of the accumulated value of their AVC scheme; and if he will make a statement on the matter. [8468/14]
Amharc ar fhreagraSection 17 Finance Act 2013 introduced a new section 782A into the Taxes Consolidation Act (TCA) 1997 which provides members of occupational pension schemes with a three-year window of opportunity to draw down, on a once-off basis, up to 30% of the accumulated value of certain AVCs made by them, including additional voluntary PRSA contributions made to AVC PRSAs.
I understand that pension retirement bonds, otherwise known as Buy-out-Bonds (BoBs), are single premium insurance policies effected by the trustees of an occupational pension scheme on behalf of a scheme member, as an alternative to providing a preserved retirement benefit under the scheme for that member. Transfers to a BoB may also include AVCs made by the pension scheme member.
At the time of the introduction of the AVC access provision, it was indicated at meetings which officials of my Department and the Revenue Commissioners had with pension industry representative bodies that where there was clear evidence that the transfer value to a BoB included AVCs, the individual concerned could avail of the AVC access option in respect of the AVC value in accordance with section 782A TCA.
The pre-retirement access to a portion of AVCs which I introduced in Budget and Finance Act 2013 is, by definition, restricted to AVCs. It does not apply to core pension savings. Extending the access provision to BoBs generally, without regard as to whether the BoB includes transfers in respect of AVCs, would be to allow access to such core pension savings. If I was to permit such access in relation BoBs, there would be little rationale argument against extending it to all core pension savings including occupational pension schemes PRSAs and retirement annuity contracts. I am not prepared to go down that road.
In my view, it is preferable not to allow early unplanned withdrawals of core pension savings as the inevitable result is to divert savings initially intended to finance retirement to meet other short term financial needs. This clearly poses retirement income adequacy issues and the impact of the early withdrawal of pensions savings on the ultimate value of the pension pot at retirement should not be underestimated.
For these reasons, I have no plans to extend the measure beyond AVCs.
85. Deputy Barry Cowen asked the Minister for Finance to set out the total amount collected in the local property tax in 2013 in each local authority; the anticipated collection amount in 2014; and if he will make a statement on the matter. [8478/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that 2013 year-end compliance data for the Local Property Tax (LPT) and preliminary data in relation to 2014 are available broken down by city and county councils nationally and the most up to date figures were published on 18 February on the Commissioners website at: http://www.revenue.ie/en/tax/lpt/lpt-stats-0214.pdf.
The Commissioners have confirmed that by the end of December 2013 €318m had been transferred by Revenue to the Exchequer in respect of LPT. Of this amount, €242m was in respect of LPT for 2013 and €76m relates to 2014 LPT.
The 2014 forecasted yield for LPT is €550 million. However, the Commissioners advise that it is not possible to state the precise amount of LPT which is expected to be collected for 2014. A numbers of factors could affect the outcome, including the continuation of the strong level of voluntary compliance that was achieved in 2013, the impact of Revenue s national compliance programme to follow up with those liable persons who have failed to meet their LPT obligations for 2013 and 2014, and the compliance programme for the collection of arrears of household charge/LPT.
