Written Answers Nos. 54-62
54. Deputy Michael McCarthy asked the Minister for Finance the rationale for imposing an additional 0.15% levy for 2014 and 2015 on pension groups such as (details supplied); and if he will make a statement on the matter. [8756/14]
Amharc ar fhreagraI announced in my Budget 2014 speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I have however, introduced an additional levy on pension funds at 0.15% to, among other things, continue to help fund the Jobs Initiative. The additional levy, within the existing legal framework, will apply to pension fund assets in 2014 and 2015.
The impact of the Jobs Initiative can be seen by the increase in employment levels, particularly in the accommodation and food services sector. The Jobs Initiative included the reduction of VAT on tourism services to 9% from 13.5% on a temporary basis until the end of 2013. This measure has proved to be a major success, helping create over 15,000 new jobs as well as protecting existing jobs. It was due to end in 2013. However, it is important that we reinforce success when possible, so I have decided to continue this reduced rate. This will support the increased number of jobs already in place and accelerate the creation of new jobs.
The Deputy will be aware that I announced the reduction of the Air Travel Tax to zero with effect from 1st April 2014. The decision to remove the tax, together with the retention of the 9% VAT rate for tourism services, will help maintain the momentum created by the success of The Gathering this year. Since the Budget announcement, airlines have announced the opening up of new routes resulting in a significant increase in passenger numbers with the associated increase in tourism activity and employment.
The Jobs Initiative also included a number of current and capital expenditure measures, including a number aimed at retraining the workforce. I would ask the Deputy to note that my colleague the Minister for Social Protection, Joan Burton T.D., with responsibility for JobBridge, the National Internship scheme, recently announced that the number of internships, originally planned at 5,000 has now exceeded 20,000. Indecon Economic Consultants undertook an evaluation of the JobBridge scheme in 2012 (published in April 2013) and their report found that 61.4% of the JobBridge survey respondents were in employment within 5 months of finishing their internships.
Under education measures, the Springboard scheme as announced in the Jobs Initiative had initially provided for 5,900 places. During 2011 and 2012, over 10,000 people enrolled on programmes under the Springboard scheme. The scheme has been extended further with my colleague, the Minister for Education and Skills, Ruairí Quinn T.D. announcing in June this year, another 6,000 places under the third Springboard allocation. Further rollouts of the springboard scheme will be considered in the context of the findings of an on-going evaluation.
The chargeable persons for the levy are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans. The payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled, where they decide to do so, to adjust current or prospective benefits payable under a scheme to take account of the levy. It is up to the trustees to decide whether and how the levy should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible. I cannot intervene in this process in respect of any pension fund.
However, should the option of reducing scheme benefits be taken, in no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy.
Finally, I want to reiterate that addressing the difficulties in the labour market remains the Government's biggest challenge and, accordingly, the Government is giving its highest priority to job protection and job creation.
55. Deputy Niall Collins asked the Minister for Finance if information was exchanged between State agencies, semi-State bodies and the Revenue Commissioners in preparation for the local property tax; the checks put in place to protect the data; if the transfer was referred to the data protection commissioner; and if he will make a statement on the matter. [8769/14]
Amharc ar fhreagra56. Deputy Niall Collins asked the Minister for Finance the grades of civil servants that have access to personal data collated for the local property tax; and if he will make a statement on the matter. [8770/14]
Amharc ar fhreagra57. Deputy Niall Collins asked the Minister for Finance the number of civil servants who have access to personal data collated for the local property tax; and if he will make a statement on the matter. [8771/14]
Amharc ar fhreagraI propose to take Questions Nos. 55 to 57, inclusive, together.
I am informed by the Revenue Commissioners that in their implementation of the LPT data was exchanged between Government Departments, State agencies, semi State bodies and the Revenue Commissioners. Sections 151 and 153 of the Finance (Local Property Tax) Act 2012 (as amended) enable the Revenue Commissioners to request certain details from specified bodies for LPT purposes. Section 153 of the Act includes a list of these bodies.
Under section 151 of the Act, the information that the Revenue Commissioners may request is details, in the possession or control of the relevant person, of the address or addresses, as the case may be, of residential properties, and in relation to each residential property:
- the name of the occupier,
- the name of the owner,
- the address contained in any geodirectory maintained by any relevant person or such other information as may allow the location of the property to be established,
- any unique identification number which the relevant person has assigned to the property or, as the case may be, to any meter or other device located in the property or to the occupier or owner of that property, and
- information in relation to the size and type of the property.
As there is a legislative basis for the sharing of the specified information by these bodies with the Revenue Commissioners, it is permitted from a data protection perspective under section 8(e) of the Data Protection Acts 1988 and 2003. However, the Office of the Data Protection Commissioner is routinely consulted in relation to proposed data exchanges between State Bodies and Revenue and did provide guidance in relation to aspects of the data which was transferred to Revenue for the purposes of implementing Local Property Tax. A key aspect of the work undertaken by Revenue in the implementation of LPT was the development of a comprehensive Register of residential properties in the State. The Register was developed using data drawn from a range of sources including Revenue's own databases, the Household Charge database from the Local Government Management Agency (LGMA), Non-Principal Private Residence data, Private Residential Tenancies Board data, information from the Department of Social Protection and data from utility companies. As well as being provided for in the LPT legislation, in advance of the data exchanges, data protocol agreements were drawn up between Revenue and the relevant organisations. These outlined how the data would be transmitted and how it would be secured and managed by Revenue. I am also advised that the Commissioners utilised the following data sources in their development of the on-line interactive valuation guide, most of which are publically available:
- Revenue's stamp duty records, which record all property sales in the Republic and the values of the properties sold.
- CSO's Residential Property Price Index which provides guidance on establishing the percentage reduction to be applied to the prices obtained for properties sold in 2010, 2011 or 2012.
- The Geo-Directory produced by Ordnance Survey Ireland and An Post, which provides information on property location and type.
- Information in relation to property location and type collected by the Sustainable Energy Authority of Ireland.
- Spatially derived data that indicate relative distances of all residential properties (using GeoDirectory) to a series of key amenities and services (transport, health, education, retail, emergency services etc).
- Geographically linked data from publicly available sources such as the Central Statistics Office Census 2011 results at small area level and the 2012 Pobal HP Deprivation index.
Revenue is an integrated tax and customs organisation. Frontline customer service, compliance and debt management staff throughout the organisation, amounting to about 4,800 at clerical, administrative and management grades, who are authorised to do so, have access to taxpayer records, including LPT, to enable them to do their jobs. I am advised that access to data by Revenue staff is based on a management approved business case. Access controls are in place for staff using all Revenue taxpayer systems. All access is recorded and regular audits are carried out to ensure access policies are followed. The Deputy should note that this number fluctuates as a result of staff movements and changing business needs.
I am further informed by the Revenue Commissioners that taxpayer confidence in Revenue is essential for the organisation to fulfil its duties as laid down by the Houses of the Oireachtas and it is Revenue's reputation for properly and securely holding and using data that has nurtured and sustained that confidence. This principle of taxpayer confidentiality has always been central to the ethos of the organisation. The Finance Act 2011 introduced a taxpayer confidentiality provision which reinforced the existing ethos by providing the clear legal basis which allows Revenue officials to disclose taxpayer information and includes legal sanctions where this provision is breached. It has been hugely influential in encouraging staff to be more vigilant, thus further strengthening data protection in the organisation.
The security and privacy of Revenue taxpayer data are of the highest priority and Revenue implements a host of different procedures and policies to protect this data. Revenue has a number of policies and practices in place to ensure the integrity and confidentiality of taxpayer data.
- Revenue has a Data Controller appointed by the Board pursuant to Section 1 of the Data Protection Acts who has overall responsibility for driving data protection policy and management.
- A code of practice for the protection of personal data in Revenue was introduced in January of 2013 which was developed in conjunction with the office of the Data Protection Commissioner and is designed to give operational meaning to the principles of data protection set out in the Data Protection Acts.
- Following on the Code of Practice, a consolidated Data Breach Management Plan has also been introduced which places the responsibility on senior management to report breaches to the Data Controller and which are logged in a data breach register which the Office of the Data Protection Commissioner may access.
Data protection policies and practices in Revenue have been examined on a number of occasions by the Data Protection Commissioner. His report of the substantial cross-organisation audit in 2010 was positive and Revenue has subsequently built on some of the recommendations in that report. All Revenue officials are bound by the Officials Secrets Acts, the Civil Service Code of Standards and Behaviour, the Revenue Code of Ethics, in addition to Section 851A of the Taxes Consolidation Act, which introduced criminal sanctions for unauthorised disclosure of taxpayer information. Revenue has a range of internal controls to ensure compliance. Internal data protection audits were introduced in 2010 which examine compliance with the Data Protection Acts in district and regional offices. New measures were introduced to assure staff compliance with Revenue policy on data security and confidentiality. This facilitates periodic review of staff access logs to ensure compliance with access and transaction processing rules. Revenue has attained and maintained ISO27001 since January 2010 accreditation. This covers information/data security for the public facing systems (www.revenue.ie and www.ros.ie). ISO27001 is the international best practice standard for information security and is independently audited by external practitioners. For Revenue this includes all live application software, network, security, server, operating systems, middleware, data, storage and the monitoring components within these zones. Revenue systems/processes were last audited in November 2013. Revenue also holds ISO 22301 for their Data Centres, which is the international standard for business continuity management. The ISO 22301 management system lets you identify threats relevant to your business and the critical business functions they could impact. It requires Revenue to have plans in place ahead of time to ensure business continuity. Finally, I am advised that the Office of the Data Protection Commissioner is routinely consulted in relation to all proposed data exchanges between State Bodies and Revenue.
58. Deputy Bernard J. Durkan asked the Minister for Finance if a refund of income tax paid is due in the case of a person (details supplied) in County Carlow in view of the fact the person has not yet received the tax clearance certificate sent on 16 December 2013; and if he will make a statement on the matter. [8773/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that a Tax Credit Certificate issued to the named individual on 14/08/2013 and to his employer on 13/08/2013 for the tax year 2013. A Tax Credit Certificate issued for the tax year 2014 on the 09/12/2013 to the employer of the named individual and on the 16/12/2013 to the named individual. Based on the returns received by Revenue from the employer in this case no tax was paid in 2013 and therefore no refund is due. A copy of the most recent Tax Credit Certificate will issue to the taxpayer.
59. Deputy Michael McGrath asked the Minister for Finance if he has asked the National Asset Management Agency, as part of the current review of the agency, to consider selling off large portions of its loan book through a small number of big ticket portfolio deals; and if he will make a statement on the matter. [8800/14]
Amharc ar fhreagra79. Deputy Lucinda Creighton asked the Minister for Finance if media reports are accurate that half of the Irish Bank Resolution Corporation assets are now expected to be sold; if he will confirm if media reports are accurate that he is looking at an accelerated sale of National Asset Management Agency assets; and if he will make a statement on the matter. [8831/14]
Amharc ar fhreagraI propose to take Questions Nos. 59 and 79 together.
The Special Liquidators are continuing to implement the orderly and efficient wind down of IBRC in accordance with the provisions of the IBRC Act and the Ministerial Instructions. The sales processes in relation to the assets are on-going and are expected to be completed over the coming months. While I am pleased with the progress made by the Special Liquidators to date it is too early to estimate with certainty the precise level of assets that will be sold.
The strategy and timing of NAMA's sale of assets is one of the areas being examined as part of the review of NAMA being carried out by my Department. In the context of this review, I have asked NAMA to evaluate their disposal timing and strategy in the context of current market demand and explore the advantages and disadvantages of accelerating its disposal strategy. No decision will be taken on this matter until I receive feedback from NAMA on these points and my Department's review has been completed. I expect this to be completed in the coming months.
60. Deputy Michael McGrath asked the Minister for Finance the current book value and the estimated market value of loan assets and property assets currently under the control of the National Asset Management Agency; if he will set out the proposed disposal schedule; and if he will make a statement on the matter. [8801/14]
Amharc ar fhreagraAs set out in the NAMA Section 55 Quarterly Report to 30 September 2013, the book value of NAMA's loans at that date was €20.7bn. Details relating to the book value of NAMA loans will be set out, in line with IFRS accountancy requirements, in its annual report for 2013, which will be published in the coming months.
On December 4th, 2013, NAMA announced that it had met its first major milestone the redemption of €7.5 billion of Senior Bonds by the end of 2013. NAMA also announced at that time that the NAMA Board has set a target of redeeming another €7.5 billion in Senior Bonds by the end of 2016 and its expectation is that all senior debt will be redeemed by 2020. I understand that the Board continues to review its senior debt redemption schedule in the light of current market conditions.
61. Deputy Michael McGrath asked the Minister for Finance if he has had any discussions with the Central Bank of Ireland regarding any possible salary increases this year for its employees; the current policy of the Central Bank of Ireland on salary increases; if any salary increases have already been sanctioned for Central Bank of Ireland staff; and if he will make a statement on the matter. [8802/14]
Amharc ar fhreagraUnder the Central Bank Act 1942, the employment of staff at the Central Bank and their terms and conditions are matters for the Central Bank Commission. I have no role in sanctioning conditions of employment of staff in the Central Bank. Whilst the Central Bank of Ireland is empowered under the Central Bank Act 1942 to set the terms and conditions of employment of its staff, I have been informed by the Central Bank that it has implemented the pay adjustments and pay restraint provisions of the various Financial Emergency Measures in the Public Interest Acts (FEMPI) since 2009. The Central Bank's current pay policy reflects the on-going pay restraint measures of these statutes since their enactment.
I have been further informed by the Central Bank that it has commenced a process to undertake a review focused on the future organisation design and structure necessary to deliver its strategy and mandate in an effective, flexible and efficient manner. The review will be wide ranging covering for example, internal structures, career paths and internal processes. The review itself is not expected to be completed before 2015 due to the scope involved, with the implementation of any agreed recommendations to follow on a phased basis. While the review will also include an examination of potential reward models for the future, the Central Bank has been, and continues to be, subject to the various statutory public sector pay adjustments in recent years, comprising of pay reductions and consequential on-going pay restraint.
62. Deputy Brendan Smith asked the Minister for Finance the position regarding a credit union (details supplied) which is not being allowed to hold an annual general meeting for the second year in a row as a result of the Central Bank of Ireland refusing to accept the credit union’s auditor’s value in use of the credit union’s building; if his attention has been drawn to the fact that the firm of auditors employed by the credit union was recommended to it by the Central Bank Of Ireland; if he will request the Central Bank of Ireland to bring finality to this issue as board members of this credit union wish to hold the AGM as soon as possible; and if he will make a statement on the matter. [8805/14]
Amharc ar fhreagraThe Registrar of Credit Unions at the Central Bank is responsible for the regulation of credit unions. With regard to the credit in question, I have been informed by the Central Bank that for reasons of confidentiality it cannot comment on individual credit unions. Credit unions are required to hold an Annual General Meeting (AGM), in accordance with Section 78(2) of the 1997 Act, within four months of the end of the financial year. In relation to the holding of an AGM, the Central Bank works closely with credit unions on a case by case basis to resolve any regulatory issues arising prior to the holding of an AGM. Where members are seeking information regarding the proposed timing of their AGM, they should request this information from their individual credit unions. Any actions taken by the Central Bank are taken in the interests of credit union members and the protection of their savings, in line with their statutory mandate.
