Written Answers Nos. 37-42
37. Deputy Stephen S. Donnelly asked the Minister for Education and Skills if he will publish the State's official response in the EU Commission state aid investigation of State aid to Bus Éireann and its answer to the question by EU Commission in C 31/07 Paragraph 82 of its letter to him (details supplied); and if he will make a statement on the matter. [15173/14]
Amharc ar fhreagraAs I advised the Deputy in my reply of 26th February, the release of the documents referred to is a matter for the relevant European Commission Directorate. The State's response to the investigation referred to, which commenced in 2007, was coordinated by the Department of Transport, Tourism and Sport. My Department supplied any information to that Department as required by the Commission. The State has maintained that the operation and administration of PSO transport services and the school transport scheme respectively are in accordance with the provisions of EU law. I understand that a Commission decision on this investigation is awaited.
38. Deputy Charlie McConalogue asked the Minister for Education and Skills the feedback his Department has received from secondary schools on the impact of his cuts to guidance counselling hours; if he will commit to revisiting his decision to remove the specific allocation to schools for guidance counselling; and if he will make a statement on the matter. [16469/14]
Amharc ar fhreagraI acknowledge that bringing guidance within quota is challenging for schools, and feedback has been mixed but the alternative was to adjust the PTR staffing allocations. My Department helped shelter the impact for DEIS post-primary schools by improving their standard staffing allocations. I do not intend to revise the changes made in Budget 2012 in respect of guidance counselling hours. Since September 2012 guidance provision is organised by school management from within the staffing schedule allocation. This gives schools greater autonomy to determine how they deploy their teaching resources across the competing needs of the school.The representative organisations for School Principals and school management developed a framework that assists schools on how best to manage the provision of guidance from within their staffing allocation. Wherever possible, group work and class based activity should be used to maximise the amount of time available for those pupils that are in most need of one to one support. With economic recovery and as our budgetary position permits, and when the Government is in a position to look at improving the teaching resources for schools I do not believe that a return to a situation where there would be a separate allocation for guidance in schools is desirable. The Principal and leadership of the school should have discretion on how teachers are deployed for certain purposes. Guidance and counselling is a whole school responsibility with guidance counsellors playing their part within an overall team approach.
39. Deputy Jonathan O'Brien asked the Minister for Education and Skills the number of Irish citizens who were refused grants from Student Universal Support Ireland on the basis of not satisfying the habitual residence condition for the year 2012-13; and if he will make a statement on the matter. [16443/14]
Amharc ar fhreagraI can confirm to the Deputy that under the residency requirement of the Student Grant Scheme, a student must have been resident in Ireland for at least 3 of the 5 years immediately prior to an approved course commencing in an approved institution in order to qualify for a grant. However, a student may qualify for a grant, having met the residency requirement during the course of their studies.Student Universal Support Ireland (SUSI) has confirmed that the number of Irish citizen applicants who did not meet the habitual residence condition in the 2012/13 academic year and had their applications refused, was 118.
40. Deputy Clare Daly asked the Minister for Education and Skills in view of his proclaimed commitment to a pluralist education system, the reason he allowed Roman Catholic Canon Law to override democratic principles in the case of the constructive dismissal of the school principal at a school (details supplied) in County Limerick. [16412/14]
Amharc ar fhreagraTeachers, in accordance with the Education Act 1998, are employed by the school management authority of each individual school. Schools nominate eligible teachers for the payment of incremental salary grant and withdraw nominations on the departure of a teacher for whatever reason. My Department does not require that the school, when withdrawing a nomination, indicate the reason for that withdrawal. Section 24(3) of the Education Act, 1998 provided for the suspension and dismissal of teachers. Agreed procedures under this section were implemented with effect from September 2009. The Maynooth Statute provided that "a clerical manager shall not dismiss a teacher or assistant, male or female, or give notice of dismissal, until the Bishop be notified, so that the teacher if she/he will, may be heard in her/his own defence by the Bishop". The Bishops agreed to abrogate the Statute (Section 264 Section 2) at a general meeting in December 2010 and this was approved by the Congregation for Catholic Education on the 29th March, 2011 with effect from September, 2011.
41. Deputy John O'Mahony asked the Minister for Finance his plans to increase the carbon tax that was introduced in 2010; and if he will make a statement on the matter. [16885/14]
Amharc ar fhreagraChanges to the carbon tax are a matter for the annual budget/finance bill cycle. In this context changes to the carbon tax would be for consideration for Budget 2015.
42. Deputy Heather Humphreys asked the Minister for Finance the position regarding single farm payment entitlements and land that have been leased under the early retirement scheme and the lessee now wishes to purchase the entitlements before 15 May 2014; if this transaction would be subject to the €37,500 VAT limit; if this sale would be subject to capital gains tax; and if he will make a statement on the matter. [16887/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that, in general, if a single payment entitlement is sold without land then VAT will be due at the standard rate of 23% on the sale if the sale proceeds exceed the relevant threshold for registration (currently €37,500 per 12 month period). A farmer who exceeds the threshold by virtue of selling a payment entitlement is obliged to register for VAT but only in respect of that single transaction. Non-VAT-registered farmers who purchase a payment entitlement and suffer VAT are not permitted to register in respect of the single transaction, but will have the normal registration option open to them.
Where a farm business, including payment entitlement, is sold to a person who intends to carry on the farming business, then the sale may be treated for VAT purposes as the transfer of a business or part thereof, provided all the relevant conditions are met. In such circumstances, the sale is deemed not to be a supply for VAT purposes and VAT is not chargeable on the sale.
A single payment entitlement is a chargeable asset for capital gains tax purposes. Accordingly, any chargeable gain arising on the disposal of such entitlements is ordinarily liable to capital gains tax. Where a disposal of a single payment entitlement is made by an individual, the first €1,270 of any gain is exempt from capital gains tax. Where the gain exceeds that amount, capital gains tax will only be charged on the amount in excess of €1,270. The current rate of capital gains tax is 33%.
Section 598 of the Taxes Consolidation Act 1997 provides for what is commonly referred to as retirement relief in respect of a disposal by an individual of land or of an interest in land owned and farmed by that individual for a period of not less than 10 years ending with the disposal. Where any such disposal also includes the disposal of a single payment entitlement at the same time and to the same person it also qualifies for relief from capital gains tax. For capital gains tax purposes, retirement relief is given where the consideration for the disposal of the land together with the payment entitlement does not exceed the following amounts:
- €750,000, in the case of an individual who retires from farming and who is aged 55 years or over but less than 66 years,
- €500,000, in the case of an individual who retires from farming and who is aged 66 years or over,
- €3 million, in the case of an individual who retires from farming, is aged 66 years or over and the disposal is to his or her child (as defined in Section 599(1)).
- in a case where the retiring farmer is aged 55 years or over but less than 66 years and the disposal is to his or her child (as defined in Section 599(1)), there is no upper limit on the amount of consideration that qualifies for relief.
The capital gains tax retirement relief also applies to an individual who avails of the Scheme of Early Retirement from Farming (Early Retirement Scheme (ERS3) 2007) implemented by the Department of Agriculture, Food and the Marine and who satisfies the above conditions.
A single payment entitlement that is disposed of without also disposing of the land at the same time and to the same person does not qualify for retirement relief.
