Thursday, 15 May 2014

Written Answers Nos. 53-63

Dublin-Monaghan Bombings

Ceisteanna (53)

Brendan Smith

Ceist:

53. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade further to Parliamentary Questions Nos 42 and 43 of 17 April 2014, if he has raised recently with the British Foreign Secretary and the Northern Ireland Secretary of State, the need for the British Government to respond positively and without further delay to the motions passed unanimously in Dáil Éireann requesting the British Government to release the papers-files pertaining to the Dublin-Monaghan bombings of 17 May 1974; and if he will make a statement on the matter. [22034/14]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

As the Deputy is aware, this weekend, on 17 May, sees the fortieth anniversary of the Dublin-Monaghan bombings. With 33 killed, that terrible day saw the highest number of casualties on any single day during the Troubles. It left a further 300 people injured. The Taoiseach and I have reiterated our support for the all-party Dáil motions of July 2008 and May 2011 urging the British Government to allow access by an independent international judicial figure to all original documents in their possession relating to the bombings. Last week I met with members of the families of those killed and injured in the bombings and in other bombings in this jurisdiction and with Justice for the Forgotten and confirmed the Government’s ongoing support for their campaign. At that meeting, I announced funding of €48,000 for Justice for the Forgotten, which now operates as a project of the Pat Finucane Centre, which will be disbursed through the Reconciliation Fund operated by my Department. I welcome the continued all-party support for their campaign on behalf of the Dublin/Monaghan families.

I have raised the matter of access to information related to the bombings with my Ministerial counterparts in the British Government, including directly with the Secretary of State for Northern Ireland, Theresa Villiers MP, to whom I wrote on this matter this week. I hope that the British Government will reflect afresh on the Government’s request. The Government will continue to pursue the issue at both ministerial and official level.

The Government continues to demonstrate solidarity with the Dublin-Monaghan bombings families. The Taoiseach and Minister of State Costello will participate in a memorial event which will take place on Talbot Street on 17 May. I will be represented at a wreath-laying ceremony in Monaghan town on 18th May by an official from my Department.

Diplomatic Representation

Ceisteanna (54)

Brendan Smith

Ceist:

54. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the likely time scale for the opening of an embassy in Thailand; and if he will make a statement on the matter. [22035/14]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

The Deputy will be aware of the Government Decision of 6 May 2014 regarding the nomination of ambassadors to Embassies abroad, including the Ambassador to Thailand. It should be noted that nominations of ambassadors are subject to the approval (agrément) of the authorities of the receiving States and appointments are not formally confirmed until this approval is forthcoming. In addition, the process of establishing the Embassy in Thailand involves a variety of logistical matters including the identification and arrangement of suitable premises and the engagement of local staff.

I understand that these matters are well in hand but, given the range of issues involved in the establishment process, I hope the Deputy will understand that it is not possible at this point to provide a definite timescale. However, I can confirm that it is the Government's intention that all necessary arrangements will be completed without undue delay so that the new Embassy will be operational as soon as practicable.

Northern Ireland Issues

Ceisteanna (55, 56)

Brendan Smith

Ceist:

55. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the actions he will take to assist in progressing the Haass talks to a successful conclusion; and if he will make a statement on the matter. [22112/14]

Brendan Smith

Ceist:

56. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the recent engagement he has had with the British Government and the political parties in the Northern Ireland Executive regarding the need to progress the Haass talks; and if he will make a statement on the matter. [22117/14]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

I propose to take Questions Nos. 55 and 56 together.

I remain firmly of the view that Northern Ireland urgently requires a new way forward on dealing with the past that can command public confidence. The early successful conclusion of the political talks represents the best opportunity to make progress across all three important areas of parades, flag and identity issues and dealing with the past. Maintaining the status quo in relation to these issues is not a feasible or satisfactory option for anyone.

I welcome that the NI party leaders continued to meet and to make progress up until last week. I welcome also that they have agreed to reconvene on 27 May, following the upcoming European and local government elections.

It is in the best interests of Northern Ireland that agreement is reached without further delay. I believe that there is a window of opportunity to reach agreement before the summer and I will continue to encourage the NI parties over the coming weeks towards that end.

I continue to engage with the Secretary of State for Northern Ireland regarding the talks and in particular the need to find a way to deal better and more comprehensively with the legacy of the past.

Medical Aids and Appliances Provision

Ceisteanna (57)

Seán Fleming

Ceist:

57. Deputy Sean Fleming asked the Tánaiste and Minister for Foreign Affairs and Trade the number of defibrillators that are located in Government offices and buildings under the remit of his Department and those under his aegis throughout the country; if these are available in emergency cases outside of office hours in the community in the locations where they are based; the number and cost of same; if he will consider putting some arrangement in place whereby these defibrillators can be located where the public can get access out of office hours times in the interest of health and safety; and if he will make a statement on the matter. [22380/14]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

There are ten defibrillators in my Department. One defibrillator is accessible in each of the ten buildings where officials of my Department are located, including in the Passport Offices. The cost of each defibrillator was €1,295.85. As there is no public access to departmental offices outside of office hours, the defibrillators are not available during such periods.

Water Charges Administration

Ceisteanna (58)

Pearse Doherty

Ceist:

58. Deputy Pearse Doherty asked the Minister for Finance the tax relief that will be available on the payment of water charges. [21868/14]

Freagraí scríofa

Minister for Finance

I do not envisage that tax relief would be available on water charges.

Black Economy

Ceisteanna (59)

Seán Fleming

Ceist:

59. Deputy Sean Fleming asked the Minister for Finance in an effort to reduce the black economy and assist persons who are working legitimately, if he will examine the proposal whereby all banks who give loans or mortgages on houses require their customers to provide work on the house which was carried out by persons or companies that were fully registered for tax purposes; and if he will make a statement on the matter. [21869/14]

Freagraí scríofa

Minister for Finance

This Government is committed to reducing the amount of activity in the shadow economy, particularly in the construction sector. As the Deputy is aware, I introduced the Home Renovation Incentive in Finance Act (No 2) 2013. It provides for tax relief for property owners by way of an income tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works. The aim of the Incentive is to support tax compliant building contractors by moving activity out of the shadow economy into the legitimate economy.

In order to qualify for the tax credit, the works must be carried out by legitimate contractors on a homeowner's main residence. The homeowner must also be property tax compliant. A simple, easy to use, online Home Renovations Incentive system was introduced on 10th April 2014. This allows contractors to record details of works being carried out and payments received by them.  It also allows property owners to look up the details that the contractor has entered in relation to their works.

While the online system was only introduced on 10th April, the Revenue Commissioners have advised that there has already been a significant amount of activity in the online system.  This indicates that the scheme is working as intended and encouraging individuals and building contractors to operate in the legitimate economy.

I have no plans to introduce a scheme such as the one proposed by the Deputy. Mortgage provision is an operational policy matter for the management board of each bank concerned. 

Mortgage lending decisions must be undertaken on a sustainable and prudential basis by financial institutions and conform fully to the regulatory requirements, both in relation to the financial institution itself, and also with regard to the safeguarding of the borrower's interests.  The Central Bank has advised me that it does not comment on commercial decisions or set commercial policy of individual firms. In a supervisory capacity, the Central Bank oversees and reviews bank practices and regulatory adherence.

Insurance Industry

Ceisteanna (60)

Pearse Doherty

Ceist:

60. Deputy Pearse Doherty asked the Minister for Finance the reason the two-month notice period under the Consumer Protection Code 2012 was not applied in the case of the customers on Setanta Insurance. [21909/14]

Freagraí scríofa

Minister for Finance

Setanta Insurance Company Limited ("Setanta") is a Maltese incorporated company which was both authorised and prudentially supervised by the Malta Financial Services Authority (MFSA). While its financial position is not supervised by the Central Bank of Ireland, the firm is supervised by the Central Bank for conduct of business rules, i.e. consumer protection obligations.  The Central Bank is in contact with the MFSA in relation to Setanta Insurance Company Limited, the impact on policyholders and the provision for relevant and appropriate information.

On 16 April 2014, Setanta determined that the company was insolvent. This means that Setanta does not have sufficient funds to be able to honour its full obligations towards claimants, policyholders and other creditors.  Setanta was formally placed into liquidation by the MFSA following a meeting of the creditors which took place on the 30 April 2014 where a liquidator, Mr Paul Mercieca, was appointed. Officials from my Department together with officials from the Central Bank met with the Liquidator and his representatives in Ireland on 7 May 2014. At that meeting, the Liquidator confirmed that all policyholders who have not already done so should arrange alternative cover without delay as claims are unlikely to be paid in full and once the notice period has expired all policies will be cancelled by the Liquidator. While the position on each policy is for the Liquidator to decide in due course, on Friday, 9 May the Liquidator placed notices in national newspapers which advised policyholders that all Setanta policies of insurance will be cancelled by way of 7 days' notice or 10 days' notice to policyholders in accordance with their policy documents.

In the circumstances, I would strongly advise policyholders that it is no longer in their best interest to maintain policies with Setanta as the company is not in a position to meet claims in full.  This is in order to avoid prolonging a situation where policyholders would continue to drive vehicles insured by Setanta in circumstances where their potential claims are unlikely to be paid in full.  The Central Bank has also advised all Setanta Policyholders to make alternative insurance arrangements without delay to avoid this situation, as they believe this is in their best interest.

The Deputy makes particular reference to the two months' notice period required to be made under Consumer Protection Code.  While it would be preferable that a two month period would be available to consumers to make alternative arrangements, the Consumer Protection Code 2012 is clearly intended for situations where regulated entities are in a position to provide such notice, i.e. in the cases of mergers and transfers, and not in the case of an insolvent liquidation.

The Liquidator has advised that arrangements are in hand for policyholders to obtain their "no claims bonuses" certificates from Setanta. Insurance Ireland have informed me that these certificates will be honoured by other insurers. 

In addition, the Insurance Ireland 'Declined Cases Agreement' is available to policyholders of Setanta.  The current Declined Cases Agreement was drawn up in 1981 and is adhered to by all motor insurers in Ireland. I am informed that under the agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance, if he/she has approached at least three insurers and has not been able to obtain cover from them.  I understand that Insurance Ireland is also making information available to those who have queries, complaints or difficulties in relation to this matter through their service at [phone] or by email at [e-mail].

Until otherwise advised those policyholders which have been affected by the collapse of Setanta should continue to contact Setanta Insurance Services Limited at 0818 255 255 (if calling from outside Ireland [phone]) or on [e-mail].

Household Charge Collection

Ceisteanna (61)

Dan Neville

Ceist:

61. Deputy Dan Neville asked the Minister for Finance the position regarding local property tax and household charge in respect of a person (details supplied) in County Limerick. [21949/14]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the person to whom the Deputy refers is fully compliant with her Local Property Tax (LPT) obligations for both 2013 and 2014. However the records that Revenue received from the Local Government Management Agency (LGMA) in respect of the Household Charge (HHC) indicated that the original €100 liability was not paid. The correspondence that issued to the person referred to that liability rather than LPT.

For the Deputy's information, with effect from 1 July 2013, Section 156 of the Finance (Local Property Tax) Act 2012 (as amended) converted HHC to LPT, increased all outstanding liabilities from €100 to €200 and made Revenue responsible for the collection of those outstanding amounts. 

As part of the handover process, Revenue received the HHC Register from the LGMA and cross-referenced it with its own LPT Register to identify a list of properties for which the HHC was still outstanding. Once the list of properties was compiled, Revenue wrote to the property owners concerned and advised them to either pay within a specified period of time or confirm the reasons as to why the liability was not due, for example if a property was exempt.

Revenue has confirmed to me that a member of the LPT team has already made direct contact with the person in question and explained the background to the €200 HHC liability to her. The person confirmed that she had misunderstood the difference between LPT 2013/2014 and the arrears of HHC. The LPT team member outlined the various payment options that are available for HHC and arrangements are now in place for the person to pay the liability on a phased basis through one of the approved Service Providers.

Tax Credits

Ceisteanna (62)

Brendan Griffin

Ceist:

62. Deputy Brendan Griffin asked the Minister for Finance the savings expected in 2014 from changes made to one-parent family tax credit as a result of budget 2014; his views on the difficulty that the changes have caused for parents adversely affected; and if he will make a statement on the matter. [21957/14]

Freagraí scríofa

Minister for Finance

As you are aware the One-Parent Family Tax Credit (OPFTC) has been replaced with a new Single Person Child Carer Credit from 1 January 2014.  The restructured credit is of the same value i.e. €1,650 per annum as the one-parent family tax credit and also includes the same entitlement to the additional €4,000 extended standard rate band, which increases it to €36,800 per annum, before liability to higher rate of income tax arises.  However, the credit is more targeted in that it is, in the first instance, only available to the principal carer of the child. 

When first proposed in Budget 2014 it was initially estimated that the changes would yield around €18 million in 2014 and €25 million in a full year. However, as a result of an amendment which I brought forward at Committee Stage of the Finance Bill, which allowed a principal carer who is entitled to the credit and who does not wish to avail of it to surrender it to a secondary carer, the expected yield is now estimated at €16 million in 2014 and €23 million in a full year.

It is essential to regularly review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them. 

The new credit is designed to be an activation measure, which was the original intention behind the OPFTC.  It is designed to be an in-work benefit to support the primary carer to take up, or remain in, employment. It should not be considered as a supplementary source of income, on which the financial support of a parent depends. 

The Commission on Taxation acknowledged that the OPFTC played a role in supporting and incentivising the labour market participation of single and widowed parents.  However, in its recommendations it concluded that the credit should be retained but that it should be allocated to the principal carer only. The restructuring of the credit will achieve such an outcome. 

It is important to note that there is no tax credit available to assist married couples with the costs associated with raising their children. The changes that were introduced for single person child carers in Budget 2014, ensure that the benefit of the tax credit goes, in the first instance, only to the person who has the care of the child for the majority of the tax year.

While I understand the difficulties being experienced by those that have lost the OPFTC and who have not qualified for the new SPCCC, I am satisfied that the new credit targets limited Exchequer resources to where they are needed most.

Tax Code

Ceisteanna (63)

Brendan Griffin

Ceist:

63. Deputy Brendan Griffin asked the Minister for Finance his views on increasing the threshold for inheritance tax in the Budget 2015; and if he will make a statement on the matter. [21967/14]

Freagraí scríofa

Minister for Finance

Capital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance. I assume the Deputy is referring to the "Group thresholds" for CAT.

For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.

There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A: tax free threshold €225,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.

Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.

Group C: tax free threshold €15,075 applies in all other cases.

Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold. These thresholds have been reduced in recent years as part of the effort to restore the public finances as taxes on capital are less harmful from an economic perspective than taxes on employment.

Preparations for Budget 2015 and the forthcoming Finance Bill have commenced. It would not be appropriate for me to comment on what changes, if any, are being considered in this area nor any other area.