Written Answers Nos. 244-271
244. Deputy Pearse Doherty asked the Minister for Finance if he will provide a list of the exemptions applicable for withholding tax with an associated cost for each exemption; an analysis of the exemptions that could be abolished; the impact of their abolition; and the savings that would generate for the Exchequer. [31264/14]
Amharc ar fhreagraI understand that the Deputy is referring to the exemptions applicable in respect of Dividend Withholding Tax (DWT). The legislation relating to DWT is contained in Chapter 8A of Part 6 (sections 172A to 172M) and Schedule 2A of the Taxes Consolidation Act, 1997 (TCA 1997). The primary purpose of DWT is to collect tax at source from dividend payments and other distributions made by Irish resident companies to Irish resident individuals who are chargeable to income tax on such distributions (with a credit allowed for DWT deducted).
Section 172C TCA 1997 provides that certain recipients of distributions are specifically excluded from the scope of the DWT. The categories of persons excluded from DWT under this section include:
- Irish resident companies;
- pension schemes, managers of approved retirement funds and PRSA administrators;
- qualifying employee share ownership trusts;
- collective investment funds and exempt unit trusts;
- managers of special savings accounts and special portfolio investment accounts;
- charities;
- athletic or amateur sports bodies; and
- permanently incapacitated individuals and thalidomide victims who are exempt from tax in respect of income arising from the investment of compensation payments awarded for the benefit of such persons.
In addition, Section 172D TCA 1997 provides that the following non-resident persons qualify for exemption from DWT:
- individuals who are neither resident nor ordinarily resident in the State and who are resident in an EU Member State or in a country with which Ireland has a tax treaty;
- companies which are not resident Ireland and
- which are resident in another EU Member State or tax treaty country and not controlled by Irish residents;
- which are ultimately controlled by a person or persons resident in another EU Member State or tax treaty country; or
- the main shares of which, or the main shares of the parent company or companies of which, are substantially and regularly traded on a recognised stock exchange in an EU Member State or tax treaty country.
It should be noted that the exemptions contained in sections 172C and 172D TCA 1997 are not automatic and must be established by means of an appropriate declaration of entitlement to exemption completed by the applicant.
I am informed by the Revenue Commissioners that, while they do not have a statistical basis for compiling estimates of the cost of the various exemptions from DWT, such exemptions are provided in respect of persons or bodies that are not chargeable to tax in respect of the dividend income concerned. Accordingly, if these exemptions were to be abolished, any DWT deducted would have to be refunded. This would result in an additional administrative burden for the recipient of the dividend and for Revenue and, ultimately, no net additional yield to the Exchequer.
245. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the lotteries developed in Slovakia and now Portugal which encourage consumers to submit receipts for purchases to the lotto in order that the government can create paper trails to ascertain which retailers and merchants are not complying with VAT laws, using false receipt numbers and so on; if he encountered problems with VAT returns here and if he envisages a merit in such an initiative; and if an initiative such as this was pursued, and a car is awarded each month to the winner, the cost of running the lotto and the potential reward to the Exchequer from increased VAT compliance. [31265/14]
Amharc ar fhreagraThe Revenue Commissioners have advised me that they are aware of such initiatives in some Member States. I understand, however, that the Member States in question require businesses to provide the Revenue authorities with electronic access to details of all their customer transaction data. The customer receipts submitted for the lottery can be cross-checked against the transaction data provided by businesses. Ireland does not have such a system in place to support this kind of checking and the introduction of such a system would impose significant costs on business.
Over the last number of Finance Acts I have introduced various measures to support supply chain analysis and retail sales control such as the Return of Mineral Oil supplies, returns of Merchant Acquirer data on credit card transactions. In addition the design of the Diesel Rebate System, the Home Renovation Incentive and the electronic Relevant Contracts Tax are all designed to facilitate compliance and support legitimate trade. A key element of all these initiatives is that they optimise the digital environment and allow Revenue to develop its compliance framework based on risk analysis, analytics and data mining.
There is no doubt that use of electronic invoicing, real time reporting of transaction data and remote access by tax administrations of business records is increasingly on the agenda internationally. Revenue will continue to monitor international developments and examine new ways of tackling non-compliance and shadow economy activity using a risk-based approach while ensuring that compliant business is not unduly burdened with unnecessary costs and administrative overheads. I will continue to respond positively through the Finance Bill to well-designed proposals from Revenue that tackle tax evasion and support legitimate trade.
246. Deputy Pearse Doherty asked the Minister for Finance the total tax take to GDP according to the last calculable year; the European average; and if there is a shortfall the way he proposes the State move towards the average. [31266/14]
Amharc ar fhreagraWhile the most recent year for which complete tax figures are available is 2013 the last year for which comparisons are available at present on an EU wide basis is 2012.
The total tax take to GDP for 2012 is 28.7% and the EU average is 36.3%.
The primary reason for this difference is that the taxation structure in Ireland is primarily based on taxes rather than social security contributions (SSC's) which are significantly larger in other member states. SSC's represent 4.4 % of GDP (second lowest in the Union after Denmark), compared to an EU-28 average of 12.7 %.
Excluding SSC's the tax to GDP ratio for Ireland is 24.3% and in line with the EU average of 25.2%.
In addition, an alternative and more representative denominator to use in the case of Ireland would be gross national product (GNP) which is considerably lower than GDP. The difference between these two measures, the factor flow to/from abroad, is very large and negative. Other bodies including the Irish Fiscal Advisory Council (IFAC) have utilised a 'hybrid' measure in order to account for this divergence. Based on previous estimates, Ireland would have a tax burden in excess of the European average if GNP was used as a relevant base and just below the average using IFAC's hybrid approach.
As regards the current tax burden in Ireland direct taxation (particularly income tax) is currently considered to be quite high and makes up 45.6% of the total revenue figure. In terms of GDP, the shares of personal income taxes and corporate income taxes are in line with the EU-27 average and represent 9.7 % and 2.5 % of GDP.
Consequently, as the aforementioned analysis has shown Ireland's tax base is consistent with its EU counterparts and should be kept relatively stable in order to foster the strategy of growth and competitiveness within the economy while also moving towards the target of a balanced budget in structural terms.
(All statistical data sourced from Eurostat).
247. Deputy Pearse Doherty asked the Minister for Finance the current cash holdings in the National Treasury Management Agency; the current national debt and the amount that will be spent on serving the interest associated with this debt in 2015; and if a portion of the cash in the NTMA was used to buy back debt with a higher interest rate, what would be saved in interested spending in 2015. [31267/14]
Amharc ar fhreagraAt end-June 2014 the Exchequer had €20.6 billion available in Exchequer cash and other short-term investments. The end-June position has benefitted from the fact that over 80 per cent of the €8 billion bond funding target for 2014 was completed in the first half of the year. Cash balances are expected to decrease significantly by year-end.
The National Treasury Management Agency is responsible for borrowing on behalf of the Government and managing the National Debt in order to ensure liquidity for the Exchequer and to minimise the interest burden over the medium term. Decisions regarding the appropriate level of cash and related assets to be maintained must take account of various factors including the risk of a perception that the Exchequer might not be in a position to meet its obligations due to inadequate cash balances and that market funding rates for Ireland would therefore be higher than would otherwise be the case if the State had a healthy liquidity position.
The April 2014 Stability Programme Update (SPU) projected end-2014 General Government Debt at €204.4 billion.
The April 2014 SPU also projected General Government interest expenditure in 2015 at €8.45 billion. The interest expenditure projection for 2015 will be further reviewed in the context of Budget 2015 in the autumn and will reflect developments in the interim as well as the outlook at that time, including for interest rates and funding requirements.
The National Treasury Management Agency (NTMA) has carried out a number of transactions this year to buy-back and cancel debt. Most recently, on 2 July, the NTMA bought back and cancelled €2.0365 billion nominal of the 4.6% Treasury Bond 2016, as part of the buy-back/switch transaction which saw the nominal outstanding of the 3.9% Treasury Bond 2023 increase by €0.4795 billion. The projected net interest reduction from this transaction amounts to some €80 million in 2015.
248. Deputy Terence Flanagan asked the Minister for Finance the income range being paid to National Asset Management Agency developers; the amount that was paid in salaries to developers in 2013; and if he will make a statement on the matter. [31279/14]
Amharc ar fhreagraNAMA advises that it does not pay salaries to debtors as it is not their employer. Rather, NAMA's role is, like a bank, that of a secured lender. NAMA advises that, in the context of its role as a secured lender, in certain cases it permits debtors to retain part of the income from their income-producing assets to pay overheads where necessary for the preservation and enhancement of the value of property securing its loans. These overhead costs may include an allowance for the remuneration of debtors and the staff employed by the debtor to manage the assets when the NAMA decides that this offers the best and most cost effective option for the taxpayer.
NAMA advises that the decision as to whether to work with a debtor, and whether to approve the retention of overheads to include an allowance for the remuneration of a debtor, is determined on an individual case by case basis by its assessment of how it can be optimise debt recovery.
NAMA advises that it permitted 134 debtors to retain salaries from rental and other income generated by their cash producing assets in 2013. The total value of such retained income in 2013 was €10.9m. 30 debtors retained an income of up to €49,000, 50 retained an income of between €50,000 and €99,000, 36 retained an income of between €100,000 and €149,000, 15 retained an income of between €150,000 and €199,000 and three debtors, who manage multi-billion euro business enterprises, retained an income of €200,000.
250. Deputy Pearse Doherty asked the Minister for Finance Ireland's contribution to the EU budget for 2014 and for 2015. [31304/14]
Amharc ar fhreagraThe overall amount of the EU Budget is determined, within the 7 year Multiannual Financial Framework, by the annual budgetary negotiations between the Council of Ministers and the European Parliament. The EU budget itself is mainly financed through contributions from each member state. These comprise 'traditional own resources' principally customs duties collected on behalf of the EU, a VAT- related payment under which an agreed percentage is levied on a harmonised VAT base for each member state and finally a balancing component paid according to each member state's share of EU Gross National Income (GNI).
The most recently published figure by the European Commission for Ireland's contribution to the EU Budget in 2014 is €1,610 million. However, our final contribution will be higher and will be affected by a number of factors including the outcome of negotiations on amending budgets and re-balancing payments in respect of economic data updates for earlier years. My Department will continue to closely monitor developments.
With regard to 2015 the Commission, based upon its draft budget proposal for next year, calculate that Ireland will contribute €1,660 million to the EU Budget. However, our actual contribution will depend, amongst other factors, upon the size of the budget adopted for 2015 which is still under negotiation.
251. Deputy Michael McGrath asked the Minister for Finance the reason a mortgage in arrears which is sold by a regulated to an unregulated entity no longer appears in the quarterly statistics published by the Central Bank of Ireland; and if he will make a statement on the matter. [31308/14]
Amharc ar fhreagra252. Deputy Michael McGrath asked the Minister for Finance if mortgage accounts with Irish Bank Resolution Corporation which have been sold to third parties and are in arrears will continue to appear in the quarterly Central Bank of Ireland arrears statistics; and if he will make a statement on the matter. [31309/14]
Amharc ar fhreagraI propose to take Questions Nos. 251 and 252 together.
The Central Bank's latest 'Residential Mortgage Arrears and Repossessions Statistics' publication for the end of Q1 2014 (http://www.centralbank.ie/press-area/press-releases/Pages/ResidentialMortgageArrearsandRepossessionsStatisticsQ12014.aspx), shows that the number of mortgage accounts for principal dwelling houses (PDH) in arrears, fell for the third consecutive quarter. A total of 132,217 PDH accounts were in arrears at end March 2014, a decline of 3.2 per cent relative to end Q4 2013 and that, for primary dwelling mortgage accounts of more than 90 days in arrears, there was a decline of 3.5% over the quarter. The Central Bank has advised that all IBRC mortgage loans are included in its quarterly statistics publications.
Separately from Central Bank quarterly reports, a monthly reporting regime on mortgage restructures and arrears for the six main banks covered by the Central Bank's Mortgage Arrears Resolution Targets (MART) has been put in place by my Department. The latest publication, with data to the end of May, shows that the number of PDH mortgage accounts in arrears of greater than 90 days has fallen by 4,716 accounts when compared to the end of Q1 2014 while the overall number of PDH mortgage arrears has fallen by 5,108 accounts in the same period.
The Central Bank has informed me that it is precluded from releasing statistics from which individual entities or transactions can be identified. To date, it has not been possible to include sales of mortgage loans without breaching confidentiality. The Central Bank is aware of the impact of asset transfers on overall trends and it is putting measures in place to address this, while safeguarding confidentiality. The Central Bank has advised that its mortgage arrears data will be adjusted in upcoming releases to include all Irish resident mortgages (on banks' books or held by third parties).
253. Deputy Michael McGrath asked the Minister for Finance the number of complaints that have been made against banks for non-compliance with the code of conduct on mortgage arrears since it was instituted; the number that have been upheld; the sanctions that have been imposed on banks for cases of non-compliance; the maximum sanction that may be handed down; and if he will make a statement on the matter. [31310/14]
Amharc ar fhreagraThe Central Bank's Code of Conduct on Mortgage Arrears (CCMA) is a statutory Code issued under Section 117 of the Central Bank Act 1989 and lenders are required to comply with the CCMA as a matter of law. The Central Bank has advised that it does not publish statistics in relation to the number complaints against banks for non-compliance with the CCMA. However, it is planning to test compliance with the CCMA later this year.
Part III C of the Central Bank Act 1942 provides the Central Bank with the power to administer sanctions in respect of the commission of prescribed contravention(s) by regulated financial service providers and the participation in the prescribed contravention(s) by persons concerned in their management.
The Central Bank has informed me that where a concern arises that a prescribed contravention has been or is being committed, the Central Bank may investigate. Following an investigation an inquiry may be held where there are reasonable grounds to suspect that a prescribed contravention has been or is being committed. The inquiry shall decide if the prescribed contravention has occurred and determine the appropriate sanctions.
A prescribed contravention could be a breach of:
- a provision in legislation
- a code, or a direction, given pursuant to legislation
- a condition or requirement imposed on a regulated financial service provider
- any obligation imposed on a regulated financial service provider by the Central Bank
Following an inquiry, the Central Bank, for example, can impose one or more of the sanctions below:
- caution or reprimand;
- direction to refund or withhold all or part of money charged or paid, or to be charged or paid, for the provision of financial service by a financial service provider;
- a direction to pay the Central Bank a monetary penalty (not exceeding the greater of €10,000,000 or 10% of turnover where the financial service provider is a body corporate or an unincorporated body and not exceeding €1,000,000 where the financial service provider is a natural person and for persons concerned in the management of a financial service provider);
- disqualification of a person from being concerned in the management of a regulated financial service provider;
- revocation or suspension of an authorisation;
- direction to the regulated financial service provider to cease committing the contravention;
- direction to pay the Central Bank all or part of its costs incurred by the Central Bank in the investigation of the matter and the holding an inquiry.
The Central Bank has advised that to date, it has not imposed a sanction on a mortgage lender in relation to breaches of the CCMA. More information on the Administrative Sanctions procedure can be found at the following link: http://www.centralbank.ie/regulation/processes/EnfI/Pages/Introduction.aspx).
The Deputy will be aware that the Central Bank monitors compliance with the statutory consumer protection requirements through its on-going engagement with firms, reviews and research, themed inspections, mystery shopping, and advertising monitoring. The Central Bank regularly conducts themed inspections to ensure compliance with all of its codes of conducts, including the CCMA.
Themed inspections examine issues across a sector. Where a specific compliance issue arises with an individual firm, this is addressed directly with the firm and where appropriate, regulatory action may be taken. Breaches of regulatory requirements are dealt with in accordance with our Administrative Sanctions procedure. To promote compliance, the Central Bank provides feedback on themed inspections and publish the main issues on its website. The Central Bank has conducted a number of themed inspections on the CCMA since its introduction in 2009. Details of these themes and the feedback issued can be found at the following link: http://www.centralbank.ie/regulation/processes/consumer-protection-code/compliance-monitoring/Pages/themed-inspection.aspx.
The Central Bank's plan for themed inspections in 2014 (http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankPublishesProgrammeofThemedReviews.aspx) includes an inspection of mortgage lenders to test compliance with the revised CCMA. Compliance with the CCMA is also a Central Bank enforcement priority for 2014.
Where a borrower believes that their lender has not complied with or in any way disregarded the CCMA, he/she may make a complaint to their lender. The lender must seek to resolve the borrower's complaint in line with the complaints handling process set out in provisions 10.7 to 10.12 of the Central Bank's Consumer Protection Code. Each lender must also establish an Appeals Board to consider and determine any such appeals submitted by borrowers. If the borrower remains dissatisfied following the outcome from the complaints or appeals process, he/she may then refer the matter to the Financial Services Ombudsman (FSO) who deals independently with unresolved complaints from consumers about their individual dealings with all regulated financial service providers.
I have been informed by the Office of the Financial Services Ombudsman that in relation to MARP complaints, where issues of sustainability/repayment capacity are in dispute, the FSO is only in a position to investigate a complaint as to whether the provider, in handling a mortgage arrears issue, correctly adhered to its obligations pursuant to the CCMA. That Office has provided details of the number of findings where the issue of CCMA/MARP was raised in 2013 and in 2014 (to 11 July 2014) and is set out below.
|
Year |
Findings issued |
Upheld |
Partly upheld |
Not upheld |
|
2013 |
69 |
1 |
14 |
54 |
|
2014 (to 11/07/14) |
54 |
1 |
14 |
39 |
The FSO has also advised that while it can investigate the procedures undertaken by the provider regarding the MARP process, it will not investigate the details of any renegotiation of the commercial terms of a mortgage which is a matter between the provider and the customer and does not involve the Office of the FSO as an impartial adjudicator of complaints. Details on how a consumer can make a complaint to the Office of the Financial Services Ombudsman can be found on the FSO website at https://www.financialombudsman.ie/complaints-process/default.asp?m=1.
254. Deputy Dan Neville asked the Minister for Finance if a letter will be provided in respect of a person (details supplied) in County Limerick confirming that they are no longer self-employed. [31384/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the person in question was registered for income tax in October 2013, in respect of a trade being carried on by him. Revenue has no information to indicate that this trade has ceased.
If the taxpayer has ceased to be self employed, he should contact his local district office, Limerick District, River House, Charlotte Quay, tel. 061 212700 with the details of cessation, to allow Revenue to update its records on his current status. In the circumstances Revenue is not in a position to provide the letter sought. I am further advised that since the income tax system operates on a self assessment basis any such letter could only confirm that the taxpayer had advised them that he had ceased to be self-employed.
255. Deputy Charlie McConalogue asked the Minister for Finance the reason a 23% VAT increase has been implemented in the cost to those availing of the senior alert scheme; and if he will make a statement on the matter. [31389/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that there has been no change in the VAT treatment of personal alarms and related services. The supply of personal alarms is liable to VAT at the standard rate, currently 23%, as is the supply of parts, accessories and monitoring fees. The VAT rating of goods and services is subject to the requirements of the EU VAT Directive and there is no scope to apply a lower VAT rate.
256. Deputy Pearse Doherty asked the Minister for Finance the number of farmers exempted from the payment of capital gains tax as a result of the sale of EU entitlements; and the average amount of tax saved per farmer. [31391/14]
Amharc ar fhreagraThe background to the Deputy s question is that a technical change made at EU level to the new Common Agriculture Policy (CAP) arrangements for replacing the Single Payment Scheme for farmers with the Basic Payment Scheme after this year impacts on farmers who let 100% of their farmland and their single farm payment entitlements. As a result of the change, farmers in this position would have lost their farm payment entitlements and the Department of Agriculture, Food and the Marine advised those farmers to sell those entitlements to active farmers by 15 May last (the deadline by which the change takes effect).
On 1 May last, I announced my intention, based on the case made to me, to provide for an exemption from CGT on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an active farmer by 15 May 2014.
Based on figures supplied by the Department of Agriculture, Food and the Marine, there are close to 6,500 lessor farmers affected by the change who would otherwise have an average liability to CGT of about €4,000 on disposal of their entitlements.
I propose to include appropriate provisions to give effect to the CGT exemption in Finance Bill 2014 which will be published shortly after Budget 2015 in the Autumn. While the CGT due on any chargeable gains arising from the disposal of farm payment entitlements made by 15 May would have to be paid in the normal course by 15 December 2014, the Revenue Commissioners have indicated that they will not require such payments to be made pending the passing of the Finance Bill and the coming into law of the relevant CGT amendments to be included in that Bill.
257. Deputy Terence Flanagan asked the Minister for Finance further to Parliamentary Question No. 120 of 10 December 2013, the position regarding the local property tax (details supplied); and if he will make a statement on the matter. [31440/14]
Amharc ar fhreagraI previously dealt with this case in Question No. 120 of 10 December 2013. Revenue has advised me that it tried to make direct contact with the person in question on a number of occasions on foot of Question No. 120 of 10 December 2013 but the person did not answer or make any return contact. Revenue also wrote to the person in November 2013 and had follow up telephone discussions with him in December 2013.
I am also advised that the correspondence to which the Deputy refers in this Question relates to arrears of Household Charge (HCC), while the issues in Question Question No. 120 of 10 December 2013 related to Local Property Tax (LPT).
Revenue has confirmed to me that a member of the LPT team recently succeeded in making contact with the person by telephone. The LPT team member discussed all aspects of both LPT and HHC with the person, which included advice on the various payment options that are available and explaining how deferral of LPT/HHC operates. The person has committed to pay the outstanding amounts over the remainder of 2014 through one of the approved payment service providers. LPT Branch has updated the person's record to reflect his chosen payment method.
259. Deputy Peter Mathews asked the Minister for Finance in relation to mortgage holders, the number of individual mortgage holders, with all banks, that are now involved in legal proceedings; and if he will make a statement on the matter. [31455/14]
Amharc ar fhreagraThe Central Bank's Code of Conduct on Mortgage Arrears (CCMA) places an onus on the banks, in respect of a co-operating borrower, to explore all the options for an alternative repayment arrangement offered by the lender to address a primary dwelling mortgage difficulty before any legal action is considered.
The CCMA provides that lenders may only commence legal proceedings for repossession where they have already made every reasonable effort to agree an alternative arrangement with a cooperating borrower and the Central Bank has informed me that it does not expect that repossession will be the lender's preferred solution to mortgage difficulties and in most cases engagement by the borrower will make the legal course unnecessary.
As the Deputy is aware, any bank proceeding to legal recourse with co-operating borrowers, in circumstances where an alternative sustainable arrangement is feasible and can be agreed, is not acting in a manner consistent with the Mortgage Arrears Resolution Process (MARP) process, or with the CCMA. Of course, the CCMA and MARP can only achieve positive results in circumstances where the borrower cooperates with the lender and engages with the process. Where this does not happen, the lender may have no other option but to go down the legal route to deal with an arrears case. However, if that course of action leads the borrower to commence a constructive engagement, this can lead to a more favourable conclusion for the respective parties. It should also be noted however, that even if the MARP process has concluded and where legal proceedings have commenced, the CCMA requires that a lender must continue to maintain contact with the borrower (and/or his nominated representative) periodically to see if an alternative repayment arrangement can be agreed even at that late stage.
The latest Central Bank statistics for the quarter ending March 2014 (http://www.centralbank.ie/press-area/press-releases/Pages/ResidentialMortgageArrearsandRepossessionsStatisticsQ12014.aspx) showed during that quarter, legal proceedings were issued to enforce the debt-security on a principal dwelling house in 3,093 cases.
It is important to point out that even if a repossession case has commenced in the legal system, the Land and Conveyancing (Law Reform) Act 2013 now provides a power to the Court to adjourn a repossession proceeding in relation to a principal private residence to enable the borrower to consult a personal insolvency practitioner (PIP) and, where appropriate, to instruct the PIP to make a Personal Insolvency Arrangement (PIA) proposal. In formulating a proposal for a PIA, the Personal Insolvency Act 2012 places an onus on a PIP to do so on terms that shall not insofar as reasonably practicable, require the borrower to dispose of an interest or cease to occupy a principal private residence.
The strong view of the Government is that, in respect of co-operating borrowers under the Mortgage Arrears Resolution Process, repossession of a person's primary home should only be considered as a last resort. Every effort should be made to agree an acceptable arrangement as an alternative to repossession. Regretfully, however, it must also be accepted that due to the individual circumstances, not all mortgages can be made sustainable and that in these limited circumstances, it will be in the best interests of both parties to resolve the situation in a fair manner.
260. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is due a tax rebate; and if he will make a statement on the matter. [31461/14]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that they do not have the information necessary to review the 2013 tax liability of the person concerned. They have written to the person to obtain the additional information and a review will be carried out on receipt of a reply.
261. Deputy Jim Daly asked the Minister for Finance the exceptions to the rules governing the tax relief for vehicles purchased for use by persons with disabilities where the sole carer is not a family member and the person being cared for is not a ward of court; and if he will make a statement on the matter. [31472/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the relevant legislation governing the Drivers & Passengers with Disabilities Scheme is contained in Section 92 of the Finance Act 1989 (as amended), Section 134(3) of the Finance Act 1992 (as amended) and Statutory Instrument No. 353 of 1994 (Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994).
In circumstances where a vehicle is to be used for the transport of a passenger with a disability, it must be purchased either by the passenger him/herself or by a family member of that person. Relief is confined to one family member only of the person with the disability. The family member must reside with and be responsible for the transport of the person with the disability. While the residency requirement may be waived in exceptional circumstances, it is requirement of the Regulations that the relief is confined to a family member. The only exception to this in the Regulations is where a person is appointed by the President of the High Court to act on behalf of a passenger with a disability who is a Ward of Court.
I am advised by the Revenue Commissioners that the Deputy has supplied details of a specific case to which this question refers. Revenue has confirmed to me that the person in question submitted an application form under the scheme to the Central Repayments Office, Monaghan on 26 June 2014. The person did not qualify under the scheme as she is not a family member. A letter issued to the person on 30 June 2014 outlining the reasons for the refusal of the application. The person was advised of her statutory right to appeal this decision under Sections 145 and 146 of the Finance Act 2001.
262. Deputy Terence Flanagan asked the Minister for Finance the tax reliefs and incentives that are in place to address an issue regarding the condition of the city centre (details supplied); if he will consider doing more in budget 2015; and if he will make a statement on the matter. [31479/14]
Amharc ar fhreagraThe Deputy will be aware that I announced in my last Budget Statement that the Living City Initiative, which was enacted in the Finance Act 2013, would be extended to now include the cities of Dublin, Cork, Galway and Kilkenny as well the original target cities of Limerick and Waterford. The inclusion of these four cities within the Initiative followed the results of a thorough independent ex ante cost benefit analysis.
The Living City Initiative is a targeted pilot tax incentive which aims to encourage people back to the centre of Irish cities to live in older buildings, and encourage the regeneration of central business districts.
The Initiative will provide tax incentives for works performed to refurbish residential and retail buildings either to bring them up to a habitable standard or to make improvements to buildings which are currently inhabited. The residential incentives will be targeted at owner/occupiers rather than property developers or the rental sector.
The application for State Aid approval has been submitted to the European Commission.
263. Deputy Terence Flanagan asked the Minister for Finance the help available to residents who cannot get flood insurance on their homes; and if he will make a statement on the matter. [31490/14]
Amharc ar fhreagraI am very much aware of the difficulties that the absence of flood insurance cover can cause to householders and businesses. However, neither I nor the Central Bank of Ireland, have the power to direct insurance companies to provide flood cover to specific individuals.
The provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting and the need to make adequate provisioning to meet these risks. As a matter of course, insurance companies carry out reviews of the risks they are prepared to insure against and sometimes make decisions to discontinue certain types of cover which they consider high risk. Insurance Ireland has indicated that 98% of policyholders have household insurance which includes flood cover.
Government policy in relation to flooding is focussed on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. The Office of Public Works (OPW) is carrying out an assessment of flood risk throughout the country under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme. This programme will include the production of a comprehensive suite of flood risk maps and the development of flood risk management plans for the areas most at risk. The plans will consider the best possible options, both structural and non-structural, for dealing with the risks on a long-term basis.
This commitment is underpinned by a very significant capital works investment programme which will see up to €225 million being spent on flood relief measures over a five year period from 2012 to 2016. Works are completed on a prioritised basis. Because of the cost and scale of these types of flood defence works, this approach will see benefits over the medium and long term.
The OPW and Insurance Ireland have agreed on a sustainable system of information sharing in relation to completed flood alleviation schemes. The outcome of this arrangement is that the insurance industry will have a much greater level of information and understanding of the extent of the protection provided by completed OPW flood defence works and will therefore be able to reflect this in assessing the provision of flood insurance to householders in areas where works have been completed.
After the flooding events which took place in December 2013 and January 2014 the Government provided humanitarian assistance in areas affected by flooding under a new Department of Social Protection (DSP) Humanitarian Assistance Scheme which was allocated of up to €25 million. It provides means-tested financial support to people who have suffered damage to their homes as a result of flooding. This scheme will continue to be available.
In dealing with emergency events of this nature, the DSP generally adopts an approach whereby it provides emergency income support payments in the immediate aftermath of the event to cover needs such as food, clothing, toiletries and accommodation, it covers the replacement of white goods, basic furniture items and other essential household items after the flood water abates and the houses have dried out and identifies what longer term financial support or works are required. Works carried out can include plastering, dry-lining, relaying of floors, electrical re-wiring and painting. Throughout this process, DSP staff engage with local authorities and other agencies to ensure supports are provided to those affected as swiftly as possible.
My Department is undertaking a review of measures which could be taken to increase the availability of flood insurance cover, including the past experience and future proposals in other countries. In assessing these, care has to be taken that the proposed solutions do not put in place arrangements which, over time, would weaken the provision of commercial insurance cover by the market with possible negative long-term consequences for the economy.
I am advised that in cases where individuals are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly it is open to them to contact the Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at info@insuranceireland.eu.
264. Deputy Kevin Humphreys asked the Minister for Finance if he will consider introducing a higher rate of property tax for residential units that are left vacant for more than six months as an incentive to ensure properties are either leased or sold; and if he will make a statement on the matter. [31521/14]
Amharc ar fhreagraI have indicated previously that the central national rate of LPT would not vary for the lifetime of this Government. This provides certainty for property owners.
265. Deputy Denis Naughten asked the Minister for Finance the total cost of public relations-communications to his Department in 2013; the spend to date in 2014; the total estimate for 2014; the corresponding figures for each agency funded from his Department; and if he will make a statement on the matter. [31529/14]
Amharc ar fhreagraI take it that the Deputy is referring solely to the total cost of public relations/communications and not to costs associated with advertising that would be incurred by my Department in the normal course of business, such as entries into telephone directories, the placing of advertisements in national newspapers, recruitment advertising, etc. On that basis, for the years in question (2013 and 2014 to date), my Department had no expenditure on public relations/communications. There is no estimate for public relations/communications spend for 2014.
No agencies were funded from the Vote for my Department in 2013 and 2014.
266. Deputy Brendan Griffin asked the Minister for Finance the position regarding VAT on swimming lessons; if the VAT exemption applies to lessons provided to school classes; if the lessons must take place in the school setting; if lessons under the auspices of the school are sufficient; and if he will make a statement on the matter. [31562/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that children's and young people's education, school and university education together with vocational training or retraining is exempt from VAT. This VAT exemption applies to swimming lessons provided to children of pre-school and school-going age in circumstances where the lessons delivered meet the requirements of the aquatics strand of the physical education syllabus for primary and post-primary schools, as set out by the Department of Education and Skills. It is not a necessary condition that these lessons take place during school hours or indeed in a school setting but it is a necessary condition that the lessons are similar to the programme, objectives and outcomes set out in the Department's syllabus. The vocational training or retraining exemption applies to swimming lessons provided in a manner that may lead to a vocational qualification, such as a lifesaving or instructor qualification.
267. Deputy Seán Kyne asked the Minister for Finance the progress of the living cities initiative; the number and locations of participants in the scheme; if consideration will be given to enable more participants to avail of the initiative by bringing forward the cut-off date which is currently 2015; and if she will make a statement on the matter. [31612/14]
Amharc ar fhreagraOfficials from my Department have held preliminary discussions with the relevant local authorities to identify the areas of the six cities, Cork, Dublin, Galway, Kilkenny, Limerick and Waterford, which might fall within the scope of the scheme. Each of the local authorities have now submitted proposals on the areas which they believe should be included. Further discussions will be held in due course.
An application for EU State Aid approval has been submitted and my officials are in contact with officials from the European Commission.
The Initiative cannot be implemented until EU State Aid approval has been received. Similarly, I will not be announcing the areas to be designated until this approval has been received and the initiative is to be commenced.
It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those buildings in areas which are most in need of attention. This is a pilot scheme and I do not intend to extend it until it has been commenced and we can see how well it is operating within the current parameters as set out in the legislation.
268. Deputy Eoghan Murphy asked the Minister for Education and Skills if he will advise on potential funding awards in her Department, either from the national lottery fund or other, that could be granted in respect of fitness (details supplied), at primary school level; and if he will provide a relevant point of contact for accessing such funding. [30769/14]
Amharc ar fhreagra277. Deputy Eoghan Murphy asked the Minister for Education and Skills if she will advise on potential funding awards in her Department, either from the national lottery fund or other, that could be granted in respect of projects in the area of science, engineering and fitness (details supplied), at primary school level; and if he will provide a relevant point of contact for accessing such funding. [30768/14]
Amharc ar fhreagraI propose to take Questions Nos. 268 and 277 together. The Department provides capitation funding to all recognised primary schools. An allocation of €5 million was secured from the proceeds of the sale of the National Lottery Licence to allow primary schools to invest in book rental schemes to reduce the cost burden on parents with young children. Given the scale of our economic crisis, I have no scope to introduce new or additional funding measures to assist primary schools, such as those referred to by the Deputy.
269. Deputy Bernard J. Durkan asked the Minister for Education and Skills the extent to which efforts continue to be made to create apprenticeship opportunities under various trades; the degree to which specific shortage have been identified; and if she will make a statement on the matter. [31634/14]
Amharc ar fhreagraOn 30 June, my predecessor published an implementation plan for the recommendations of the recent Review of Apprenticeship Training in Ireland, which sets out how current apprenticeships will be renewed and how the apprenticeship model will be extended to new enterprise sectors. The Apprenticeship Implementation Plan is available on my Department's website.
270. Deputy Dara Calleary asked the Minister for Education and Skills the circumstances in which a school (details supplied) in County Mayo lost its DEIS status; the actions taken by her Department to communicate this to the school; if she will review the decision in view of the level of disadvantage in the school catchment area; and if he will make a statement on the matter. [30685/14]
Amharc ar fhreagra271. Deputy Dara Calleary asked the Minister for Education and Skills the circumstances in which a school (details supplied) in County Mayo lost its DEIS status; the actions taken by her Department to communicate this to the school; if she will review the decision in view of the level of disadvantage in the school catchment area; and if he will make a statement on the matter. [30686/14]
Amharc ar fhreagraI propose to take Questions Nos. 270 and 271 together.
As the Deputy will be aware, Coláiste Pobal Acla was established in 2011 following the amalgamation of Scoil Damhnait (a non-DEIS school) and McHale College (a DEIS school).
In the case of an amalgamation involving DEIS and non-DEIS schools, DEIS status does not transfer to the newly amalgamated school. However, it is the practice of the Department to continue with the provision of DEIS supports under the DEIS programme to the newly amalgamated school in respect of the number of eligible pupils from the former DEIS school/s. Coláiste Pobal Acla continues to be supported in respect of the students from the former DEIS school in the same way as other amalgamated schools in similar circumstances. My Department has been in communication with County Mayo Education and Training Board on a number of occasions to clarify the status of Coláiste Pobail Acla in relation to the DEIS programme.
The current economic climate and the challenge to meet significant targets on reducing public expenditure limits opportunities and means that there is no capacity to extend the DEIS programme.
