Written Answers Nos. 123-147
123. Deputy Stephen S. Donnelly asked the Taoiseach when Ireland’s national risk assessment will be published; the opportunities Dáil Éireann will have to debate the national risk assessment; and if he will make a statement on the matter. [25912/14]
Amharc ar fhreagraThe draft National Risk Assessment was published by the Government in April following initial consultations within and outside the public service. Its purpose is to identify the strategic risks, both financial and non-financial, which Ireland faces. A public consultation process on the draft National Risk Assessment is now underway and submissions have been sought on significant risks that Ireland may face. Departments have been asked to bring the draft to the attention of any relevant persons or organisations that may be in a position to make a worthwhile contribution to a process. Contributions from Oireachtas members on the draft National Risk Assessment would of course be welcome as part of this consultation process and I would be pleased to see a Dáil debate on the draft if that was arranged by the Whips.
A Steering Group representative of all Government Departments has also been established to take responsibility for progressing the National Risk Assessment process including the next steps outlined in the document. It will identify what policies and processes are in place to mitigate against the risks already identified and consider the results of the public consultation process. It is also intended to commission a review of governance of risk management across Government which will inform a more systematic approach to identifying and managing broad risks at a strategic national level. It is intended that the final National Risk Assessment, taking account of the public consultation process and work of the Steering Group, will be published in the early Autumn.
124. Deputy Robert Troy asked the Tánaiste and Minister for Foreign Affairs and Trade the protocol for an Irish citizen detained by the police in the United Kingdom due to disturbances and subsequently referred to a psychiatric hospital in London; if the person may receive adequate treatment in London or will he or she be deported back to Ireland. [25333/14]
Amharc ar fhreagraI wish to inform the Deputy that the Department of Foreign and Trade is ready to provide consular assistance, as appropriate, to all Irish citizens resident in or visiting Britain. As the Deputy will be aware, Ireland and Britain have reciprocal arrangements on healthcare, however, specific questions on medical care should be directed to the Department of Health.
125. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the position regarding the passport service for Members of the Oireachtas (details supplied); and if he will make a statement on the matter. [25338/14]
Amharc ar fhreagraMy Department provides a Duty Officer Service outside normal office hours to deal with matters requiring immediate attention. This includes the issuance of passports in situations of genuine urgency or emergencies such as death or serious injury or illness abroad of a close relative or a medical emergency relating to the applicant him/herself. We do not have facilities out of hours to issue passports containing biometric chips. Therefore the emergency passport issued does not qualify for the United States Visa Waiver Programme. Someone wishing to travel to the United States on such a passport must obtain a Visa, in advance of their travel, from the US authorities.
126. Deputy Peadar Tóibín asked the Tánaiste and Minister for Foreign Affairs and Trade the amount of the €7 million designated to foreign affairs and trade group for direct Exchequer capital funding according to the Government Estimates for 2014 that is expected to go towards construction-related projects; if he will list the projects; if he will provide an update on any of these projects; and if he will make a statement on the matter. [25555/14]
Amharc ar fhreagraMy Department's total capital budget for 2014 is €5.41 million comprising of €5.16 million under Vote 28 Department of Foreign Affairs and Trade and €0.25 million under Vote 27 International Co-operation. The total capital allocation includes spending on premises and ICT infrastructure. In addition there is considerable investment in the Passport Service, including the replacement of passport production machines.
Of the total capital budget €0.731 million has been assigned to Office Premises Expenses in 2014. This funding is allocated to the ongoing refurbishments of our Mission network overseas.
Capital works projects in relation to offices used by the Department in Ireland are managed by the Commissioners of Public Works.
127. Deputy Noel Grealish asked the Tánaiste and Minister for Foreign Affairs and Trade the way in which temporary passports sent back to his Department (details supplied) are dealt with; and if he will make a statement on the matter. [25580/14]
Amharc ar fhreagraTemporary passports that are returned to my Department are sent for secure destruction on a biannual basis.
128. Deputy Sean Fleming asked the Tánaiste and Minister for Foreign Affairs and Trade the number of cases before the Labour Court, Equality Tribunal, CPSA and EAT involving civil servants taking cases against his Department; and if he will make a statement on the matter. [25640/14]
Amharc ar fhreagraThere is one case being taken under the Industrial Relations Acts by a Clerical Officer who is in dispute regarding a Performance Management Development System assessment. A date is awaited from the Labour Relations Commission for a Rights Commissioner hearing of the case.
129. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade the reason passport applications can no longer be witnessed by dentists who are not relatives; when this was changed; if he will reconsider reintroducing that profession as a criteria of persons who are able to witness passport applications; and if he will make a statement on the matter. [25682/14]
Amharc ar fhreagraThe list of approved individuals who can witness passport applications for Irish citizens resident outside of the State is reviewed periodically. The current list of witnesses extends to over ten different categories. Dentists have not been included on this list of witnesses for many years. The question of changes to the witnessing regime is currently being examined by the Passport Service. Pending completion of this examination I do not envisage extending the list of approved witnesses.
130. Deputy John McGuinness asked the Tánaiste and Minister for Foreign Affairs and Trade the reason a passport has not been issued to a person (details supplied) in County Kilkenny; if he will expedite an early response; and if he will make a statement on the matter. [25758/14]
Amharc ar fhreagraAll passport applications are subject to the provision of Passports Act, 2008 (the Act). The issue of a passport is, therefore, the culmination of an important and legally-binding process. The checks and balances within the passport process embrace the standard principles that are provided for in the Act and help to ensure that the identity of the applicant is known and that the person in question is an Irish citizen. This serves to maintain the worldwide good reputation and integrity of the Irish passport, which, in turn, ensures the safe travel and wellbeing of Irish citizens, as they travel abroad. Moreover, it helps to combat passport and identity fraud.The Act underpins a long-standing passport policy in regard to the use of verifiable civil documents such civil birth certificates for first-time applicants. These documents confirm the details of a person’s birth name, date and place of birth, all of which are critical components of a person’s identity. The Passport Service received an application from the person in question on 20/06/2012. As part of the standard examination processes, the birth certificate supplied by the applicant was found not to be authentic. The applicant subsequently produced another birth certificate which has also been confirmed as not a genuine document.
In the circumstances the Passport Service could not be satisfied as to the identity of the applicant and as a result, the application for an Irish passport could not be approved. The matter has been referred to the Department of Justice and Equality.
131. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide, in tabular form. the total amount spent per annum from 2011 to 2014, inclusive, on staff subsistence payments, staff taxi payments; if his Department has been audited for tax compliance on these payments and other benefits-in-kind; if these processes have been revised in view of concerns by the Revenue Commissioners over practices in other State bodies; and if he will make a statement on the matter. [25816/14]
Amharc ar fhreagraMy Department comprises two separate votes, Vote 28 Department of Foreign Affairs and Trade and Vote 27 International Co-operation. The total amount spent per annum in 2011, 2012, 2013 and to date in 2014 on staff subsistence payments and staff taxi payments is as follows;
|
Year |
Subsistence |
Taxi fares Reimbursed |
Total |
|
2011 |
754,865 |
151,755 |
906,620 |
|
2012 |
793,643 |
166,775 |
960,418 |
|
2013 |
829,662 |
182,027 |
1,011,689 |
|
(To May )2014 |
249,901 |
63,877 |
313,778 |
|
TOTAL |
2,628,071 |
564,436 |
3,192,505 |
Given the nature of my Department’s responsibilities officers are obliged to undertake a significant amount of official travel. Travel and meetings often take place out of hours leading to subsistence and taxi requirements. The central aim of the Departmental travel policy is to minimise official travel costs and to achieve value for money for expenditure necessarily incurred, consistent with the effective discharge of official duties. The Department complies with Department of Public Expenditure and Reform Circulars in relation to subsistence payments, including reimbursement of taxi costs. The Department is subject to audit by both the Office of the Comptroller and Auditor General and the Department’s Internal Audit function.
132. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Foreign Affairs and Trade when a person (details supplied) in Dublin 8 will receive a refund of €80 from the Passport Office. [25919/14]
Amharc ar fhreagraA refund of €80 in respect of the paid passport fee was made by the Department to the person in question last week.
133. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade the costs and expenses for the Irish Embassy to Italy for the last full year of its operation before its transfer to Villa Spada in 2012, to include rent, salaries, travel, residence, maintenance, and so on; and if he will make a statement on the matter. [26003/14]
Amharc ar fhreagraThe Embassy to Italy incurred total expenditure of €1,568,066 in the last full year (2011) prior to its transfer to Villa Spada. Following the closure of the Embassy to the Holy See in November 2011, the Embassy to Italy and the residence of the Ambassador to Italy were relocated to the State-owned Villa Spada, formerly occupied by the Embassy to the Holy See.
134. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he proposes to raise at the EU Foreign Affairs Council the urgent need for the international community to provide much needed additional humanitarian assistance for South Sudan; and if he will make a statement on the matter. [26087/14]
Amharc ar fhreagra135. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he proposes to raise at the next meeting of the EU Foreign Affairs Council the need for the EU to support the mediation talks regarding ongoing conflicts in South Sudan; and if he will make a statement on the matter. [26088/14]
Amharc ar fhreagraI propose to take Questions Nos. 134 and 135 together.
I remain very concerned about the political and humanitarian crisis in South Sudan, and especially the devastating impact on the civilian population. We have been working closely with our European Union partners since late 2013 on the response to the crisis. The EU has supported mediation efforts by the African Union and the Intergovernmental Authority on Development (IGAD), and the important agreement signed on 9 May, which provides the basis for the negotiation of a transitional government of national unity. Under this process, the first meeting between President Salva Kiir and opposition leader, Riek Machar, was held on 10 June. The EU’s Special Representative to the region, together with EU Ambassadors, including Ireland’s Ambassador in Addis Ababa, continue to work to encourage a peaceful solution to the crisis.
The situation in South Sudan was discussed in detail at the Foreign Affairs Council in Brussels on 17 March 2014. Subsequently, on 15 May, the African Union and the EU met in Brussels and jointly welcomed the 9 May agreement, urging the parties to fully implement all agreements that have been signed to date. The Foreign Affairs Council of EU Development Ministers also discussed developments with High Representative Catherine Ashton on 19 May. The Minister for Trade and Development, Mr. Joe Costello T.D., highlighted the need for progress by the EU in implementing a comprehensive approach to the political, security, and development crises in South Sudan.
Since the outbreak of the conflict in mid-December 2013, more than 1.4 million people have been forced from their homes and an estimated five million people are in urgent need of assistance. According to the World Food Programme (WFP), there is a serious risk of famine later this year unless adequate humanitarian assistance can be delivered to those most in need.
At the South Sudan pledging conference in Oslo on 20 May, international donors pledged more than $600 million dollars in aid, aimed at preventing famine and upholding human rights in the country. This is about half of the estimated total funding required to allow for the provision of vital nutrition supplies, water and child protection services. Ireland pledged €2million at the conference to support the emergency operations of UN and NGO partners in the country. This includes the provision of €1.36 million to our NGO partners in South Sudan to provide healthcare and protection to vulnerable women and children. In addition, we are providing €500,000 to support the WFP’s work in the country and €200,000 to assist South Sudanese refugees who have fled to Uganda. This funding brings our total contribution in 2014 to some €5 million.
We will continue to monitor the situation closely and to support the work for a peaceful solution to the crisis. In particular, we will continue to advocate at all relevant international meetings for increased support to the humanitarian relief effort both within South Sudan and for South Sudanese refugees and host communities in neighbouring countries.
136. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has been in contact with his EU colleagues regarding the escalating crisis in Iraq; the outcome of these discussions; and if he will make a statement on the matter. [26089/14]
Amharc ar fhreagraThe current situation in Iraq represents a grave threat both to Iraqi sovereignty and to the stability of the wider region. The armed group behind these attacks, ISIS (The Islamic State of Iraq and al-Sham/Syria), is a violent, fundamentalist movement, which has committed numerous atrocities in Syria and Iraq. They are very clear in their intent to overthrow regional states and to impose a draconian rule across much of the Middle East. They represent above all a threat to the security and human rights of all in the Middle East, with no respect for the position of women or minority communities. There have already been a number of reports from both Syria and Iraq of horrendous attacks perpetrated by ISIS against Christian communities in both countries. I also condemn and call for the immediate release of the eighty Turkish nationals, including diplomatic personnel, whom ISIS have taken hostage in Mosul. The offensive by ISIS and its allies in Iraq was discussed at the Ministerial meeting of the EU and League of Arab States which took place in Athens on 10-11 June. The Minister of State for European Affairs, Paschal Donohoe T.D., represented Ireland at the meeting which agreed a joint statement condemning these events and calling for all democratic forces in Iraq to work together and for the restoration of security to Iraq. I anticipate that I will also be discussing developments in Iraq with my colleagues at the Foreign Affairs Council next week in Luxembourg.
The Iraqi authorities have a clear duty to restore order and protect the safety of all citizens, Shia, Sunni, Kurds and Christians. The peaceful conduct of parliamentary elections in April reflect the deep wish of the Iraqi people to have a democratic State, governed under the rule of law. It is critical that Iraqi political leaders live up to these ambitions and work together to bring this instability and terrorism to an end, including through early agreement on formation of a new government.
137. Deputy Micheál Martin asked the Minister for Finance the position regarding the corporation tax rate here; and if he will make a statement on the matter. [25225/14]
Amharc ar fhreagra138. Deputy Micheál Martin asked the Minister for Finance the position regarding the European Commission's intention to investigate the corporation tax rate here; and if he will make a statement on the matter. [25485/14]
Amharc ar fhreagraI propose to take Questions Nos. 137 and 138 together.
It is important to be clear that the Directorate-General for Competition of the EU Commission is not investigating the Irish tax system or the 12.5% rate of corporation tax. As myself, the Taoiseach and other members of the Government have repeatedly said, the 12.5% corporation tax rate is settled policy. This position will not change.
The EU Commission have announced a State Aid investigation into Ireland which relates to a technical tax issue regarding one company's Irish operations. I understand that the Commission are focusing on advance opinions provided to the company a number of years ago which address the calculation of the taxable base of profits of the Irish operations.
The announcement on Wednesday 11th June is part of a wider investigation by the EU Commission into tax rulings and patent box regimes in a number of Member States, not just Ireland.
In the Irish case, we are firmly of the view that there is no state aid in this case and are confident that we will successfully defend our position. We are now turning our attention to providing our detailed, technical legal rebuttal to the Commission's position.
139. Deputy Gerry Adams asked the Minister for Finance the reason cars that have been imported from the North have an extra digit put on the car number plate when it is re-registered; and if he will make a statement on the matter. [25670/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that there is no additional digit added to the number plate format for imports from any State. The same statutory rules apply for all number plate formats.
I am advised by the Revenue Commissioners that a new Vehicle Registration computer system was introduced in December 2011. Because of budgetary constraints, it was not possible to carry forward all the registration details of vehicles registered in the previous 19 years to the new system. Accordingly, a simplified model that did not require the details of the registration number assigned to the last vehicle registered in each of the licensing authorities in each of the previous 19 years was adopted for issuing registration numbers for prior years. The simplified model assigns registration numbers starting from a particular number for each licensing authority regardless of year. The particular number chosen had to be sufficiently high to enable additional unique registrations to be added.
The starting registration number for each licensing authority was selected to ensure that there is no possibility of a vehicle being assigned a number that was previously assigned to another vehicle under the old system. As a result of this, the number will be higher than would have been assigned in the normal course of events for some years.
This is a short-term phenomenon. Vehicles presented for registration that were first registered in 2011 and subsequent years (in another State) will not be affected by this change and will be assigned the next available number in the sequence for that licensing authority and year of registration.
140. Deputy Micheál Martin asked the Minister for Finance the progress he and his officials are making with the EU regarding dealing with Ireland's debt; and if he will make a statement on the matter. [25779/14]
Amharc ar fhreagraThere have been a number of improvements to the terms and conditions of our Programme loans, since the initial agreement in late 2010, including reductions of the interest rates and, in the case of the EU facilities, extension of maturities.
In July 2011, the Euro Area Heads of State or Government (HOSG) agreed to reduce the cost of the European Financial Stability Facility (EFSF) loans, and similar reductions were subsequently agreed for the interest rates on the loans provided by the European Financial Stabilisation Mechanism (EFSM) and also by the bilateral lenders (UK, Sweden, Denmark).
In April 2013, EU Finance Ministers agreed in principle to further extend the maximum weighted average maturities on our EFSF and EFSM loans by up to 7 years, over and above the extension agreed in 2011. This further maturity extension removes a refinancing requirement of some €20 billion for the Irish State in the years 2015 to 2022. This extension of maturities has a number of significant benefits for Ireland, including smoothing our redemption profile, improving long term debt sustainability and it also has a positive impact on the cost of Exchequer borrowing through creating further downward pressure on our borrowing costs.
In February last year, the Irish Government replaced the Promissory Notes issued to IBRC with a series of longer term, non-amortising floating rate Government bonds. This has resulted in significant benefits to the State including spreading the cost of the Promissory Notes from a weighted average life of c.7-8 years to c.34-35 years at a lower funding cost for the State, resulting in significant annual interest savings.
As I have outlined in my replies to a number of previous related Parliamentary Questions, the Euro-area Heads of State or Government (HoSG) agreed in June 2012 that "it is imperative to break the vicious circle between banks and sovereigns", and that when a Single Supervisory Mechanism, involving the ECB, is in place and operational, the European Stability Mechanism could recapitalize banks directly.
The Eurogroup meeting on 20th June 2013 agreed on the main features of the European Stability Mechanism's Direct Recapitalisation Instrument or DRI. There is a specific provision included in those main features, which states that "The potential retroactive application of the instrument should be decided on a case-by-case basis and by mutual agreement." Therefore, the agreement, that we were active in negotiating, keeps open the possibility to apply to the European Stability Mechanism for a retrospective direct recapitalisation of the Irish banks, should we wish to avail of it.
On 10 June 2014 the euro area Member States reached a preliminary agreement on the European Stability Mechanism's (ESM) direct recapitalisation instrument (DRI). This now requires a decision by mutual agreement of the ESM Board of Governors to create a new ESM instrument in accordance with Article 19 of the ESM treaty and the aim is to have this process completed by November this year. This would allow the ESM DRI to come into effect once the Single Supervisory Mechanism is in place and operational which is expected to be in November of this year. It will not be possible to make a formal application to the ESM for retrospective recapitalisation in advance of the Instrument being in place.
However, both I and my Government colleagues ensure that Ireland's case for retrospective direct recapitalisation is made at all levels as appropriate. I remain confident that the commitment made by the Euro-area Heads of State or Government in June 2012 to break the vicious circle between banks and sovereigns will be respected.
141. Deputy Andrew Doyle asked the Minister for Finance if a strategic process for the National Pensions Reserve Fund has been put in place to become part of a funding mechanism for Enterprise Ireland; and if he will make a statement on the matter. [25903/14]
Amharc ar fhreagraThe NTMA (Amendment) Bill 2014, once enacted, will establish the Ireland Strategic Investment Fund (ISIF). The ISIF will absorb the assets of the National Pensions Reserve Fund (NPRF) and will have a statutory mandate to invest on a commercial basis in Ireland to support economic activity and employment.
The Bill, which was published on 15 May 2014, does not provide for the ISIF becoming part of a funding mechanism for Enterprise Ireland; however, on a practical level the NPRF/ISIF collaborates with the agency on a variety of issues.
142. Deputy Derek Nolan asked the Minister for Finance the package of measures announced in budget 2014 which were specifically targeted at supporting start ups and growing small businesses; if all of these measures have now been implemented; what the take-up has been; and if he will make a statement on the matter. [25945/14]
Amharc ar fhreagraOn 9 April 2014, I published an update on the Budget 2014 €500m "Building Business and Creating Jobs Measures" on my Department's website at http://www.finance.gov.ie/sites/default/files/Budget%202014%20Measures.pdf
Further to this, the Deputy should be aware that the SME Communications Strategy has been progressed. On 19 May I officially launched the Supporting SMEs online tool at the opening of the Limerick Local Enterprise Office. This online tool is a cross-governmental initiative to help Irish start-ups and small businesses navigate the range of Government business supports that they could be eligible for.
This online search tool is a central element of this campaign and helps SMEs to access information on the over 80 Government supports, totalling over €2bn, currently available. Over the past number of months we have collaborated with over 100 small businesses on this project and the feedback has been overwhelmingly positive.
The Supporting SMEs Online Tool is now available at the Local Enterprise Office website https://www.localenterprise.ie/smeonlinetool/businessdetails.aspx.
Government officials are currently showcasing the Supporting SMEs online tool at numerous events around Ireland.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic recovery and growth. Consequently my Department, working with the other relevant Departments and Agencies, will continue to monitor both the availability of credit and the process of debt management with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.
143. Deputy Willie Penrose asked the Minister for Finance if he will ensure that any consideration of proposals to apply the VAT rate of 23% to herbal teas, vitamins and health supplements are roundly rejected as such an imposition would have a negative impact on employment in these industries, and on the price sensitivity and ability of consumers to utilise such products; and if he will make a statement on the matter. [26103/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that EU VAT Directive (Council Directive 2006/112/EC) generally provides that supplies of goods and services are chargeable to VAT at the standard rate but that lower rates are permitted in very limited circumstances. Food products can only benefit from the zero rating in accordance with Article 110 of the VAT Directive which permits the retention of the zero rate where the products were liable to VAT at the zero rate on and from 1 January 1991.
A range of food supplements and vitamins that encourage the maintenance of health, through the sustenance derived from a normal, healthy diet, benefit from the zero rate. However, a food supplement taken for the purposes of muscle growth or body mass increase, or for the purposes of weight reduction or bodily sculpture, cannot benefit from the zero rate. I would draw the Deputy's attention to Revenue eBrief 70/2011 which contains additional detail in relation to the VAT rates for vitamins and food supplements.
I am further advised by the Revenue Commissioners that paragraph 8 of Schedule 2 of the Value-Added Tax Consolidation Act 2010 provides that the supply of tea and preparations derived from the crushed leaves of the tea plant when supplied in non-drinkable form is liable to VAT at the zero rate. The VAT applicable to herbal teas derived from plants other than the tea plant has been raised with me by the industry and the matter is subject to ongoing analysis.
144. Deputy Martin Ferris asked the Minister for Finance the amount raised through the local property tax in County Kerry in 2013 and to date in 2014; and the amount expected to be raised for the remainder of 2014. [25248/14]
Amharc ar fhreagra166. Deputy Martin Ferris asked the Minister for Finance the amount raised through the local property tax in County Tipperary in 2013 and to date in 2014; and the amount expected to be raised for the remainder of 2014. [25677/14]
Amharc ar fhreagra169. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form the revenue raised in each local authority area from local property tax in 2013; and the expected revenue to be raised for 2014 in each local authority from the tax. [25781/14]
Amharc ar fhreagraI propose to take Questions Nos. 144, 166 and 169 together.
I am informed by the Revenue Commissioners that compliance data in relation to the Local Property Tax (LPT) is available broken down by city and county councils nationally and the most up to date figures for LPT collected in 2013 and 2014 were published on 16 April 2014 on the Commissioners' website at: Local Property Tax Statistics April 2014 (PDF 192KB). 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. By the end of May 2014, a further €289m was transferred by Revenue to the Exchequer. The Commissioners have also confirmed that more detailed data and analysis will be published in due course.
With regard to the request for an estimate of the projected yield from LPT for 2014, I would direct the Deputy's attention to the comprehensive replies I gave to a number of Parliamentary Questions this year in particular Questions 148 (16578/14) and 149 (16580/14) on 8 April, Question 28 (10420/14) on 4 March and Questions 76 (8824/14) and 77 (8825/14) on 20 February.
145. Deputy Brian Walsh asked the Minister for Finance if he will provide an update in relation to consideration by the Revenue Commissioners of a submission made by representatives of the health food industry regarding the application of VAT on herbal teas vis-à-vis regular tea; and if he will make a statement on the matter. [25251/14]
Amharc ar fhreagraThe zero rate of VAT applies to tea supplied in non-drinkable form, which consists of the dried crushed leaves of the tea plant, and I am informed by the Revenue Commissioners that this treatment does not extend to products such as herbal and fruit based infusions, which are not derived from leaves of the tea plant. Industry representatives raised this matter recently with my Department and the Revenue Commissioners and this is subject to ongoing analysis.
146. Deputy Simon Harris asked the Minister for Finance the rationale behind the pension levy; the purpose for which the levy will be utilised; if he will consider information (details supplied); and if he will make a statement on the matter. [25263/14]
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% for 2014 and 2015. I am doing this to, among other things, continue to help fund the Jobs Initiative.
The reduced VAT rate of 9% on tourism and certain other services was one of the very significant and successful measures introduced by the Jobs Initiative. It was due to end in 2013. In my Budget 2014 speech I announced the continuation of the reduced 9% VAT rate. I also announced that the Air Travel Tax is being reduced to zero with effect from 1 April 2014. The 9% VAT rate has helped to create 15,000 new jobs as well as protecting existing jobs. Since the Budget announcement about the reduction in the Air Travel Tax, airlines have announced the opening up of new routes resulting in significant increases in passenger numbers with the associated increase in tourism activity and employment.
The additional 0.15% levy for 2014 and 2015 will also be used to help make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties although funds from the levy will not be hypothecated or specifically set aside for this purpose. The Government has decided that such liabilities will be met by the Exchequer as they arise.
The chargeable persons for the pension fund 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.
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.
I am conscious of the significant contribution of taxpayers, generally, to the rebalancing of the public finances and the measures introduced to support and develop the economy. There has been progress in these areas. These efforts are ongoing, including the continuation of measures in the Jobs Initiative, designed to improve the economic environment by providing the means to encourage job creation in areas of our economy most likely to deliver that employment in the shortest timeframe possible.
147. Deputy Clare Daly asked the Minister for Finance if he will reverse the changes made to the single parent tax credit, which have seriously eroded living standards of responsible single fathers in particular and have had a negative impact on their ability to support their children. [25266/14]
Amharc ar fhreagraAs outlined in previous responses to the Deputy in the matter of the Single Parent Child Carer Credit, 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.
As the Deputy will be aware, the new credit is more targeted, in that it is in the first instance, only available to the principal carer of the child. 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. A system that allows multiple claims in respect of the same child is unsustainable in the current fiscal environment.
The new credit follows on from a recommendation made by the Commission on Taxation in its 2009 report.
This measure was discussed at length during the passage through the Oireachtas of the Finance Bill, at which I brought forward an amendment to allow the credit to be relinquished by a principal carer such that a secondary claimant can avail of it provided they meet certain qualifying conditions. The Government, by allowing for such relinquishing, where a principal carer chooses to do so for whatever reason, actually provided for an additional option for single person child carers, over and above that recommended by the Commission on Taxation.
As regards the potential of this change to interfere with living standards or the level of maintenance payments, if such reasoning were to be applied, then any general tax increase, as a result of an adjustment in tax credits, rates or bands could lead to similar situations. Ultimately, maintenance payments are a matter for parents and if necessary, the courts to decide. It is not possible, and indeed would not be appropriate, for the tax code to take account of every possible variable. I am confident that the new credit targets limited Exchequer resource to where they are needed most.
