Paul Murphy
Ceist:227. Deputy Paul Murphy asked the Tánaiste and Minister for Social Protection the number of public servants in receipt of family income supplement; and if she will make a statement on the matter. [47835/14]
Amharc ar fhreagraFamily Income Supplement Data
Ceisteanna (227)
Freagraí scríofa
Family income supplement (FIS) is designed to provide support for employees on low earnings with families.
At the end of December 2014, there were 50,306 people in receipt of FIS, of which 3,902 (7.8%) are recorded as public servants.
Child Poverty
Ceisteanna (228)
Richard Boyd Barrett
Ceist:228. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Social Protection if her Department has undertaken any impact analysis studies on the effect on children of the cut to the lone parent allowance; and if she will make a statement on the matter. [2179/15]
Amharc ar fhreagraFreagraí scríofa
Social impact assessment is an evidence-based methodology to estimate the likely distributive effects of policy proposals on poverty and social inequality, including impacts on family types, lifestyle groups, and gender.
The Department of Social Protection has published an integrated social impact assessment of Budgets 2013, 2014 and earlier this week of Budget 2015, using the ESRI SWITCH model. The Department’s social impact assessments include the main social welfare and tax measures including the ongoing changes to the one-parent family payment. In addition, the 2015 analysis takes into account the Government’s decisions in relation to water charges and affordability measures.
Furthermore, the Government has committed itself to carrying out a social impact assessment of the main social welfare and tax measures for 2016 and subsequent years before the publishing of budgets. The social impact assessment will be conducted by a cross-Departmental body led by the Departments of Finance, Social Protection, and Public Expenditure and Reform.
Social Insurance Payments
Ceisteanna (229)
Seán Kyne
Ceist:229. Deputy Seán Kyne asked the Tánaiste and Minister for Social Protection her plans to alter the tax collection structure in a manner which would enable self-employed persons to make contributions that would provide income support in the event of business failure in view of the fact that the current social insurance system does not provide non-means tested support in the short term in such instances. [4690/15]
Amharc ar fhreagraFreagraí scríofa
In general, PRSI contribution classes are decided by the nature of a person’s employment.
Social insurance contributions paid under Pay Related Social Insurance (PRSI) by employers, employees, the self-employed and voluntary contributors are collected primarily through the income tax system and are paid into the Social Insurance Fund (SIF).
In general the current system of social insurance operates on a mandatory basis and therefore contributors pay PRSI contributions at the rate appropriate to their PRSI class.
Ordinary employees who have access to the full range of social insurance benefits pay class A PRSI at the rate of 4%. In addition, their employers pay 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI class A. (For employees earning less than €356 per week, the rate of employer’s PRSI is 8.5%)
Self-employed persons are liable for PRSI at the class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow's, widower's or surviving civil partner's pension (contributory) as well as guardians payment (contributory), maternity benefit and adoptive benefit.
Self-employed workers may access social welfare supports by establishing eligibility to assistance-based payments such as jobseeker’s allowance and disability allowance. In the case of jobseeker’s allowance they can apply for the means-tested jobseeker’s allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services. In assessing means from self-employment, income from the previous twelve months is used as an indicator of likely future earnings. Given the variety of self-employment situations, the means assessment procedures are applied in a flexible manner to ensure that any circumstances that would be likely to lead to a significant variation, either upward or downward, in the level of a person’s income from one year to the next are taken into consideration. It is recognised that the downturn in the economy had an impact on many self-employed persons and the consequent reduction in their income and activity levels. This may be reflected in any assessment of their means from self-employment for jobseeker’s allowance purposes. As in the case of a non-self-employed claimant for jobseeker’s allowance or disability allowance, the means of husband/wife, civil partner or co-habitant will be taken into account in deciding on entitlement to a payment.
In September 2013, I published the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed. The Group was asked to examine and report on issues involved in extending social insurance coverage for self-employed people in order to establish whether or not such cover is technically feasible and financially sustainable, with the requirement that any proposals for change must be cost neutral.
The Group found that the current system of means tested jobseeker’s allowance payments adequately provides cover to self-employed people for the risks associated with unemployment. In this context, the Group noted that almost 9 out of every 10 self-employed people who claimed the means tested jobseeker’s allowance during the three-year period from 2009 to 2011 received payment. Consequently, the Group was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.
On the basis of the findings of the report of the Advisory Group I am satisfied that the self-employed have access to income support in the event of business failure and I do not propose to make any changes to the PRSI system at this time. I will keep the situation under review.
Corporation Tax Regime
Ceisteanna (230)
Michael McGrath
Ceist:230. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the number of companies operating in the Irish tonnage tax regime in each year from 2003 to 2014; the number of persons employed in shore based positions with Irish tonnage tax companies; the total tax paid each year under the scheme; and if he will make a statement on the matter. [4327/15]
Amharc ar fhreagraFreagraí scríofa
I am informed by the Revenue Commissioners that the number of companies that returned profits under the tonnage tax regime on Corporation Tax returns for the years 2003 to 2012, the latest year available, is as set out in the following table:
|
Year |
Number of Companies |
Estimated Corporation Tax Liability on Profits Returned Under the Tonnage Tax Regime €m |
|
2003 |
* |
* |
|
2004 |
8 |
0.1 |
|
2005 |
10 |
0.2 |
|
2006 |
13 |
0.4 |
|
2007 |
20 |
0.6 |
|
2008 |
29 |
0.2 |
|
2009 |
32 |
0.3 |
|
2010 |
37 |
0.5 |
|
2011 |
38 |
0.6 |
|
2012 |
39 |
0.6 |
* Given the small number of companies in 2003, this information cannot be provided to protect the confidentiality of taxpayer data.
In relation to the number of persons employed in shore based positions with Irish tonnage tax companies, I am informed by the Revenue Commissioners that this information is not identifiable from the Commissioners' records.
Energy Prices
Ceisteanna (231)
Bernard Durkan
Ceist:231. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which his Department monitors the economic impact of energy costs; and if he will make a statement on the matter. [5003/15]
Amharc ar fhreagraFreagraí scríofa
My Department monitors and advises on all developments that can impact on the economy, including oil price movements. The price of Brent crude oil has fallen by about 45 per cent in euro terms (nearly 50 per cent in US dollar terms) since the end of September, when the macroeconomic projections that underpin Budget 2015 were finalised. For the most part this is a positive development, and will likely have a favourable impact on real economic activity in Ireland.
Ireland is a net energy importer and, as such, falls in oil prices have a positive impact in the short term. Lower energy prices reduce firms' input costs, thereby improving profitability and competitiveness. At the household level, lower energy prices are likely to lead to an increase in real disposable incomes through lower inflation and this can help people to reduce indebtedness or increase consumption on other goods and services.
In terms of quantifying the impact, a reasonable rule of thumb is that, everything else being equal, each sustained €10 per barrel reduction in the price of oil boosts the level of real GDP by somewhere in the region of 0.1 to 0.2 percentage points.
Tax Code
Ceisteanna (232)
Michael McGrath
Ceist:232. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 79 of 22 January 2015, the process in place in the Revenue Commissioners to verify entitlement to a personal fund threshold when one is requested; the documentation which must be furnished in support of such a claim if the Revenue Commissioners audit holders of personal fund thresholds to ensure compliance is maintained; and if he will make a statement on the matter. [4322/15]
Amharc ar fhreagraFreagraí scríofa
I am informed by the Revenue Commissioners that tax legislation provides for a limit or ceiling on the total capital value of tax-relieved pension benefits that an individual can draw down in his or her lifetime from all of that individual's pension arrangements. This is known as the Standard Fund Threshold (SFT) and was introduced on 7 December 2005 and reduced on a number of occasions since, most recently in Finance (No 2) Act 2013 which, among other things, reduced the SFT from €2.3 million to €2 million from 1 January 2014.
A higher limit, known as a Personal Fund Threshold (PFT), may be claimed where the capital value of an individual's pension benefits exceeded the SFT on the date of its introduction or on the various dates on which it was reduced. Accordingly, the legislation provided that such individuals could protect his or her higher pension values, subject to certain ceilings and conditions, by applying to the Revenue Commissioners for a PFT certificate.
In order to be in a position to make a correct application for a PFT the individual concerned had to request a statement from the administrator of his or her defined benefit and/or defined contribution arrangement certifying the capital value of that individual's pension rights at that date, as calculated in accordance with the provisions of Chapter 2C of Part 30 of, and Schedule 23B to, the Taxes Consolidation Act 1997.
Up to June 2014, when the PFT process was paper based, each application was examined and documentary evidence was requested to verify the accuracy of the submission and that the correct amount of a PFT was being claimed.
Since the advent of the new electronic system in July 2014 an individual is required, when making an application for a PFT, to provide basic identifying information about him or herself and the various pension arrangements of which he or she is a member. In addition, the individual has to obtain from the administrator of each pension arrangement of which he or she is a member, a statement certifying the amount of the individual's pension rights as at 1 January 2014 relating to that arrangement, calculated in accordance with the provisions of the relevant legislation.
The legislation places an obligation on both the individual making the PFT application and the administrator(s) of the pension arrangement(s) to retain the certifying statements for a period of 6 years after the last benefit is paid out and to make them available to an officer of the Revenue Commissioners on being required by a notice in writing to do so.
Section 787P (2) (b) of the Taxes Consolidation Act 1997 requires the PFT applications to be made electronically within 12 months of the electronic system becoming available (1 July 2015). After this closing date for applications, Revenue will launch a compliance program to ensure the electronic applications are correct and comply fully with the terms of the legislation.
Since 1 January 2014 when the SFT was reduced to €2 million, Revenue has issued 159 PFT certificates.
Financial Services Regulation
Ceisteanna (233)
Michael McGrath
Ceist:233. Deputy Michael McGrath asked the Minister for Finance his view on draft proposals from the European Commission on the capital buffer which must be held by constant net asset value funds; and if he will make a statement on the matter. [4326/15]
Amharc ar fhreagraFreagraí scríofa
Ireland supports enhanced regulation of money market funds to minimise system-wide risks and we are open to the consideration of necessary change in this area. However, the European Commission's original proposal on Money Market Funds (MMF) and in particular the proposed capital buffer to be applied to constant net asset value MMFs, would in my view do considerable damage to the constant net asset value MMF industry, and we have argued to this effect at the Council's working group.
Constant net asset value funds are an important source of funding for banks and corporates and the buffer proposal which would constitute an effective ban could lead to a sudden and large scale outflow of funds to third countries and a loss of liquidity in the real economy.
Reform of MMFs should be considered and proportionate. It should also be consistent with developments elsewhere globally so as to ensure no harmful impact on the EU market or disparity between the EU and the United States. The US rules did not include a capital buffer and will, in effect, preserve most of constant net asset value funds in the U.S.Ireland will work with other member states and with the Commission to develop a better approach to regulation of MMFs in Europe. It is my view that both constant and variable net asset value MMFs could be more effectively regulated through a package of enhanced regulation which includes fees and gates and this remains my preferred solution.
Eurozone Issues
Ceisteanna (234)
Pearse Doherty
Ceist:234. Deputy Pearse Doherty asked the Minister for Finance the amounts in which and the dates on which Ireland's contribution to the EU loans to Greece will be repaid; and if he will make a statement on the matter. [4395/15]
Amharc ar fhreagraFreagraí scríofa
Since May 2010, the euro area Member States and the International Monetary Fund (IMF) have been providing financial support to Greece through an Economic Adjustment Programme in the context of a sharp deterioration in its financing conditions. The Eurogroup agreed to activate stability support to Greece via bilateral loans centrally pooled by the European Commission. At year-end 31 December 2014 the total amount owing to Ireland on the Greek loan facility was €347,437,121.03.
Currently Ireland is in receipt of interest paid quarterly based on the 3 Month EURIBOR rate plus a margin of 0.5%. Capital repayments will be repaid quarterly beginning in June 2020 with the final capital repayment scheduled for June 2040.
Pension Provisions
Ceisteanna (235)
Pearse Doherty
Ceist:235. Deputy Pearse Doherty asked the Minister for Finance the number of persons subject simultaneously to both the public service pension levy and the private pension levy for each of the past three years; and if he will make a statement on the matter. [4421/15]
Amharc ar fhreagraFreagraí scríofa
It is understood that the Deputy s reference to the public service pension levy relates to the Public Service Pension Reduction (PSPR)
Not all of the information sought by the Deputy is available. This is due in particular to the fact that members of pension schemes are not charged with paying the stamp duty levy on pension fund assets introduced in 2011 to pay for the Jobs Initiative and which ends this year. The levy is a charge on the trustees of funded pension schemes and on the insurers and administrators who manage the assets of such schemes and personal pension plans and it is they who are liable to pay the levy. It is up to those trustees and administrators to decide in each case 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 funds or pension plans for which they are responsible. I have no detailed or specific information on the decisions taken by trustees and administrators in this regard.
With regard to the numbers of persons to whom the public service pension reduction (PSPR) applies, I am informed by the Minister for Public Expenditure and Reform that the number of public service pensions in payment at the end of each of the years 2012, 2013 and 2014 is estimated to have been 140,000, 144,500 and 149,000 respectively. A breakdown of these figures by individual public service scheme is not available.
An estimated 40% of public service pensions are exempt from the PSPR because of the applicable thresholds; in particular public service pensions below €12,000 awarded to persons who retired up to end-February 2012 are exempt from PSPR.
I am also informed by the Minister for Public Expenditure and Reform that the PSPR does not apply to pensions paid by public service pension schemes that are funded and subject to the Minimum Funding Standard as specified in the Pensions Act 1990. I understand that this particular exemption is provided for in section 1 of the Financial Emergency Measures in the Public Interest Act 2010 (FEMPI) by way of the definition therein of public service pension scheme .
Public Sector Staff Recruitment
Ceisteanna (236)
Terence Flanagan
Ceist:236. Deputy Terence Flanagan asked the Minister for Finance the position regarding recruitment in the Revenue Commissioners (details supplied); and if he will make a statement on the matter. [4431/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that based on current staffing levels and projected retirements during 2015 Revenue will require to fill critical posts at all grades this year.
Under a delegated sanction received from the Department of Public Expenditure and Reform the Revenue Commissioners are obliged to fill posts in the first instance by reference to the Public Service Resource panel before considering open recruitment.
Revenue has already commenced recruiting staff from Public Appointments Service panels and from existing Revenue open recruitment panels. Using its recruitment licence from the Commission for Public Service Appointments, Revenue also plans to recruit specialist staff at Principal, Assistant Principal, Administrative Officer and Executive Officer levels.
Revenue is currently engaged in running open competitions at Assistant Principal Level for a panel of tax professionals and two ICT specialists. These competitions have been advertised nationally and on the Public Appointments Service (PAS) website. Recruitment competitions for Principal Officer (Data Analyst), Administrative Officer (Compliance and ICT) and Executive Officer (Compliance) are planned for the first six months of 2015. The number of posts to be filled will depend on critical vacancies arising, projected business needs and the number of posts that can be filled through redeployment and from internal promotion panels. Overall Revenue expects to fill around 400 posts from open competitions advertised in 2014 and 2015.
All Revenue's open competitions will be advertised nationally and on the PAS website.
Bond Markets
Ceisteanna (237)
Colm Keaveney
Ceist:237. Deputy Colm Keaveney asked the Minister for Finance his views on whether there is a bubble in the sovereign bond market; his views on whether Irish sovereign bonds are currently overvalued; the risk assessment he has carried out in respect of any market correction to the current valuation of Irish sovereign bonds; and if he will make a statement on the matter. [4461/15]
Amharc ar fhreagraFreagraí scríofa
As the Deputy is aware bond market yields and their valuations are determined by market participants and not by the Irish authorities. Investors will continue to value Irish sovereign bonds based on Ireland's underlying economic and fiscal fundamentals and relative to its sovereign peers. Ireland is making good economic and fiscal progress after a number of difficult years and is now perceived by the market as a semi-core sovereign borrower rather than a peripheral.
As the issuer of Irish sovereign bonds, the NTMA constantly monitors and evaluates bond market developments. In recent months, prior to the European Central Bank's (ECB) announcement on 22 January 2015 of the expanded asset purchase programme, also referred to as quantitative easing, Irish Government bond yields declined steadily. It is reasonable to suggest that the expectation, on the part of financial market participants, of such an announcement by the ECB was a contributory factor in this decline.
European Central Bank
Ceisteanna (238, 239)
Colm Keaveney
Ceist:238. Deputy Colm Keaveney asked the Minister for Finance his views on whether the recent measures announced by the European Central Bank will be of benefit to Ireland in terms of measurable indicators; his views on what would constitute the criteria of success for these measures with respect to the Irish economy; his views on whether quantitative easing poses a risk of inflating asset bubbles in stocks, bonds, commodities and-or property; if so, the way he will address that risk; and if he will make a statement on the matter. [4462/15]
Amharc ar fhreagraColm Keaveney
Ceist:239. Deputy Colm Keaveney asked the Minister for Finance with reference to the recent measures announced by the European Central Bank, the ceiling the ECB will place on the total holdings of Irish Government bonds held by the Central Bank of Ireland; the current total holdings of Irish Government bonds held by the Central Bank of Ireland; and if he will make a statement on the matter. [4463/15]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 238 and 239 together.
Price stability in the euro area has been defined as annual inflation of close to but not exceeding 2 per cent (inflation being measured by the Harmonised Index of Consumer Prices). Inflation in the euro area has been below levels consistent with price stability for some time and, in fact, has been in negative territory for two months in a row now.
With policy rates effectively at zero per cent, the ECB announced an expanded asset purchase programme on January 22nd to include bonds issued by euro area central governments, agencies and European institutions. This programme will be carried out from March until at least the end-September 2016, or until the path for inflation is consistent with price stability.
The Irish economy should benefit through a number of channels. For example, the economy should benefit directly through improved financing conditions for households and firms. In addition, the euro area is Ireland's single largest export destination; therefore, by supporting real economic activity and raising inflation in the euro area this will underpin export growth in Ireland. Monetary policy also works through the exchange rate channel the depreciation of the euro will provide a boost to Irish exports. Raising the rate of inflation in the euro area will also help Ireland achieve our twin goals of improving competitiveness and increasing tax revenue. So, over time, the success of quantitative easing will be seen in terms of stronger growth rates in Ireland and across the euro area, and inflation rates consistent with price stability.
Of course, the accommodative stance of monetary policy in the euro area raises the possibility of asset price bubbles. This must, however, be seen in the context of weak credit growth both in Ireland and in the euro area as a whole. Moreover, the macroprudential tools that the Central Bank is to impose are designed to reduce the probability of property market bubbles.
At a European level, there has been a strengthening of institutional arrangements governing the risk architecture since the global financial crisis with, for example, the establishment of the European Systemic Risk Board.
Many details in terms of the implementation of the ECB's expanded asset purchase programme are not, as yet, publicly available and these are, of course, an internal matter for the ECB and National Central Banks. The ECB has, however, indicated that its asset purchase programme in relation to sovereign bonds will be restricted to bonds with a remaining maturity of greater than 2 years but less than 30 years. It has also indicated limits on the Eurosystem's holdings of any one issuer's bonds, taking into account existing holdings. These limits refer to the same 2-year to 30-year maturity window. To be precise, holdings within the 2-year to 30-year remaining maturity window will not exceed 33 per cent of an issuer's tradeable bonds within the same window. In summary therefore, the limits imposed on the holding of bonds are limits on the Eurosystem as a whole, rather than on the Central Bank of Ireland, and relate to bonds within the purchasable window, that is, those with between 2 and 30 years remaining maturity.
The majority of the bonds acquired by the CBI in exchange for the Promissory Notes have more than 30 years remaining. Currently, this is the case for €19 billion out of the original €25 billion nominal issuance. Therefore, the holding of these bonds by the Central Bank of Ireland will, in practice, have no impact on the amounts that can be purchased by the CBI. While other bonds within the 2-year to 30-year maturity window that are already held by the CBI and other National Central Banks will be taken into account for the purposes of calculating the amounts that can be purchased, I understand that this still leaves ample room for participation by the CBI in the asset purchase programme. In addition, I understand that the Bank s disposal strategy for its Special Portfolio - those bonds acquired following the liquidation of IBRC and the exchange of the Promissory Notes remains as previously announced, that is, it will continue to dispose of the bonds as soon as possible, provided conditions of financial stability permit. Disposals may or may not impact on the purchasable amounts under the asset purchase programme depending on whether the bonds sold are within the 2-year to 30-year maturity window.
I also wish that note be taken of the fact that, as the Central Bank of Ireland and other Eurosystem National Central Banks do not generally make regular detailed statements of their investment holdings available, I do not have information on these holdings to hand. The Central Bank will report on the holdings in its Special Portfolio - those bonds acquired following the liquidation of IBRC and the exchange of the Promissory Notes in its regular Annual Report which is scheduled to appear in April. In addition, the Eurosystem makes available information on bonds purchased in its previous Securities Market Programme on its website but this information does not cover the investment holdings to which I have already referred.
Banks Recapitalisation
Ceisteanna (240)
Colm Keaveney
Ceist:240. Deputy Colm Keaveney asked the Minister for Finance the actions he will take in the Court of Justice of the European Union with respect to the actions of either or both the European Central Bank or the European Commission in addressing the banking crisis here; and if he will make a statement on the matter. [4464/15]
Amharc ar fhreagraFreagraí scríofa
There is no intention to take the actions which the Deputy has referred to.
Departmental Expenditure
Ceisteanna (241)
Patrick O'Donovan
Ceist:241. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide, in tabular form, for the years from 2007 to 2010, inclusive, the total photography costs in his Department, including a list of the photographers who were booked, the photographers used and a breakdown of costs associated with each occasion a photographer was used; and if he will make a statement on the matter. [4493/15]
Amharc ar fhreagraFreagraí scríofa
The information requested by the Deputy could not be collated in the time available. I will respond directly to the Deputy as soon as possible.
Departmental Expenditure
Ceisteanna (242)
Patrick O'Donovan
Ceist:242. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide in tabular form for the years 1997 to 2007 the total photography costs in his Department, including a list of the photographers who were booked, the photographers used and a breakdown of costs associated with each occasion that a photographer was used; and if he will make a statement on the matter. [4509/15]
Amharc ar fhreagraFreagraí scríofa
The information requested by the Deputy could not be collated in the time available. I will respond directly to the Deputy as soon as possible.
VAT Rate Application
Ceisteanna (243)
Pearse Doherty
Ceist:243. Deputy Pearse Doherty asked the Minister for Finance if it is legally possible to charge a different, higher VAT rate for goods bought online; and if he will make a statement on the matter. [4528/15]
Amharc ar fhreagraFreagraí scríofa
I am advised by the Revenue Commissioners that in general the VAT Directive does not permit Member States to have a rate of VAT that is higher for goods sold online than for the same goods sold in a high street shop. There may be circumstances where differential rates apply to similar supplies; these arise where the on-line supply constitutes the supply of a service and the high street equivalent is a supply of goods. For example, eBooks, like other electronic services, are liable to VAT at the standard rate, while books are liable at the zero rate.
Public Relations Contracts Data
Ceisteanna (244)
Patrick O'Donovan
Ceist:244. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide, in tabular form, a list of all external public relations firms hired by his Department and associated costs incurred from 2007 to 2010, inclusive; and if he will make a statement on the matter. [4543/15]
Amharc ar fhreagraFreagraí scríofa
My Department did not hire any external public relations firms during the period 2007-10.