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Tuesday, 10 Mar 2015

Written Answers Nos. 185-200

National Internship Scheme Administration

Ceisteanna (185)

Clare Daly

Ceist:

185. Deputy Clare Daly asked the Tánaiste and Minister for Social Protection the way companies (details supplied) are being permitted to advertise jobs as internships. [10533/15]

Amharc ar fhreagra

Freagraí scríofa

The aim of JobBridge is to assist individuals to bridge the gap between unemployment and the world of work. In the current labour market environment JobBridge provides individuals with a unique opportunity to secure work experience in a new field.

The scheme has made very significant progress since it came into operation in July 2011. To date some 37,700 internship placements have commenced with over 6,100 participants currently undertaking internships and over 1,000 internship posts available on the JobsIreland website.

A variety of measures have been introduced to protect the intern and to ensure the integrity of the JobBridge Scheme. In order for an application from a host organisation to be approved it must meet a number of criteria and the host organisation must accept the terms and conditions of the scheme before their application can be processed.

The full list of the criteria for host organisations is listed on the JobBridge Section of the Department’s website www.welfare.ie, which includes the following:

- In order to qualify for an internship an organisation must have a minimum of 1 full time employee who is employed for 30 hours or more per week;

- The host organisation must be a legal entity and/or a charity recognised by the Revenue Commissioners;

- The host organisation may not provide an internship opportunity under the Scheme to an individual they have an existing or had a previous employment relationship with;

- The host organisation may not have vacancies in the area of activity in which the internship is offered; and

- The internship cannot displace an employee. The scheme administrator reserves the right to review cases where it is reported that this is the case.

These criteria are to ensure that the internship does not displace an existing position; that it provides appropriate training and development experience; and that appropriate mentoring and support is provided to the intern. Additionally in order for an internship to commence a Standard Agreement must be signed and agreed to by both the intern and the host organisation. This Agreement clearly sets out the terms of the internship; including the expected working hours and the specific learning outcomes the intern will gain over the course of their internship. The Department has a robust monitoring system in place to ensure compliance with the scheme criteria.

It is also worth noting that participation in the scheme is voluntary and an intern may contact the JobBridge Team at any stage of their internship for advice and support. Consequently, any individual, who suspects that an internship may be in breach of the scheme’s criteria, including cases of suspected displacement and quality, may contact the JobBridge team. All such matters are taken seriously by the Department and are fully investigated.

Employment Support Services

Ceisteanna (186)

Olivia Mitchell

Ceist:

186. Deputy Olivia Mitchell asked the Tánaiste and Minister for Social Protection her views on the submission she has received from the Irish Association of Supported Employment; if she is in a position to respond favourably to a new funding arrangement based on an annual service agreement; and if she will make a statement on the matter. [10534/15]

Amharc ar fhreagra

Freagraí scríofa

While I acknowledge the valuable contribution the Irish Association of Supported Employment (IASE) is making in this area, I regret there is no provision in Department of Social Protection estimates to provide funding as proposed and IASE were advised accordingly at the end of last year.

I would add that given that the HSE has responsibility for a wide range of supports for people with disabilities – including supported employment in the context of day-care services – I believe funding through the HSE is the most appropriate mechanism for supporting IASE’s work.

Family Income Supplement Appeals

Ceisteanna (187)

Brian Walsh

Ceist:

187. Deputy Brian Walsh asked the Tánaiste and Minister for Social Protection when a decision will be made in respect of an appeal on application for family income supplement in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [10553/15]

Amharc ar fhreagra

Freagraí scríofa

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 9 January 2015. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these papers have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral appeal hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Rent Supplement Scheme Appeals

Ceisteanna (188)

Michelle Mulherin

Ceist:

188. Deputy Michelle Mulherin asked the Tánaiste and Minister for Social Protection the position regarding an application for rent allowance in respect of a person (details supplied) in County Mayo; if the application will be expedited; and if she will make a statement on the matter. [10570/15]

Amharc ar fhreagra

Freagraí scríofa

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 19 February 2015. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers were received in the Social Welfare Appeals Office on 3 March 2015 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

One-Parent Family Payment Payments

Ceisteanna (189)

Michael Creed

Ceist:

189. Deputy Michael Creed asked the Tánaiste and Minister for Social Protection the impact of the changes to entitlement to the one-parent family payment with children over seven years of age in the context of a lone parent currently working 19.5 hours at minimum wage; the financial impact in these circumstances on loss of take home pay and the reduction in family income supplement; and if she will make a statement on the matter. [10571/15]

Amharc ar fhreagra

Freagraí scríofa

In the scenario provided by the Deputy, an individual working 19.5 hours on minimum wage, would earn approximately €169 a week. Together with the salary, and the figures provided for one-parent family payment (OFP) and family income supplement (FIS), and fuel allowance, this amounts to a cumulative total of €459 per week. It should be noted that Fuel Allowance is payable on OFP and jobseeker’s allowance (JA) but not FIS. Fuel Allowance averages out to €10 per week.

On foot of the July 2015 changes, OFP recipients already in receipt of FIS will see their FIS payment re-rated to take account for the loss of their OFP. All customers who transition from OFP to a FIS payment, will be able to apply for the back to work family dividend (BTWFD). The BTWFD allows these customers to retain the child proportion of their payment, which equals €29.80 per week per child (up to a maximum of €119.20 for four children), for two years, with full entitlement for the first year and 50% entitlement for the second year.

An individual in the situation outlined above will continue to have a salary of €169 a week. Their family income supplement will be re-rated to €202 a week and they will also be eligible to apply for the BTWFD which amounts to €29.80 per child a week. On this basis, their revised income will be €400.80.

I think it is important to highlight that there has been a recovery in economic growth and employment, with the unemployment rate falling from 13.1% in 2013 to 11.3% in 2014. This indicates that there are additional employment opportunities available and that, as the economy improves, wages may increase impacting positively on an individual in this situation.

Before I introduced the reforms, the One Parent Family Payment was a passive scheme with limited engagement by the State with recipients. For many lone parents, most of whom are women, this has meant long-term social welfare dependency, associated poverty and social exclusion for them and their families.

The purpose of the phased OFP scheme age change reforms that were introduced in the Social Welfare and Pensions Act, 2012, is to reduce long-term social welfare dependency by ending the expectation that lone parents will remain outside of the workforce indefinitely. These reforms aim to provide the necessary supports to lone parents to help them to access the Department’s range of education, training, and employment programmes, to develop their skills set and, ultimately, to secure employment and financial independence.

Mortgage Interest Rates

Ceisteanna (190)

Brendan Griffin

Ceist:

190. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding mortgage interest rates; and if he will make a statement on the matter. [9892/15]

Amharc ar fhreagra

Freagraí scríofa

At the outset, I must confirm to the Deputy that the lending institutions in Ireland - including those in which the State has a shareholding - are independent commercial entities. I have no statutory role in relation to regulated financial institutions passing on the European Central Bank interest rate change or in relation to the mortgage interest rates charged.  It is a commercial matter for each institution concerned. 

The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations.  The Central Bank has no statutory role in the setting of interest rates by financial institutions, apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997 and the requirement to be notified of penalty or surcharge interest imposed in respect of arrears.

As I stated in previous Parliamentary Questions, a previous Deputy Governor indicated that, within its existing powers and through the use of persuasion, the Central Bank would continue to engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds and this is a course of action I expect the Central Bank to continually appraise.

The Deputy should be aware that the Governor of the Central Bank, Mr Patrick Honohan in his opening statement to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform last November stated that, as in most advanced economies, including Ireland, it has long been understood that tight administrative control over the rates charged by banks would be counterproductive in ensuring a sufficient flow of properly priced credit on a lasting basis. Such control would strongly discourage new entrants. In this regard, ongoing competition in the banking sector will be crucial in ensuring that the economy is provided with efficient and cost effective banking services.  In this regard, there has been some movements on mortgage interest rates of late by a number of institutions which suggest that the market may well be entering a new and more competitive phase.  

The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned.  This interest rate is determined taking into account a broad range of factors including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution's overall funding.

However, as part of the Central Bank's work on mortgage arrears, lenders were asked to consider all avenues to help customers in arrears, including interest rate reductions. 

Petrol Stretching

Ceisteanna (191)

Michelle Mulherin

Ceist:

191. Deputy Michelle Mulherin asked the Minister for Finance the number of new complaints of petrol stretching the Revenue Commissioners received from motorists in County Mayo for each month since the beginning of June 2014; the number of these cases where the investigation has concluded; the outcome of the investigations; and if he will make a statement on the matter. [9936/15]

Amharc ar fhreagra

Freagraí scríofa

I am advised by the Revenue Commissioners that 44 complaints of alleged petrol stretching have been received by them for County Mayo since June 2014 to the end of February 2015 as set out as follows:

Month

June 14

July 14

Aug 14

Sept 14

Oct 14

Nov 14

Dec 14

Jan 15

Feb 15

Total

0

0

4

10

12

11

6

0

1

All complaints have been investigated and, where the complaint related to a named filling station, samples of petrol were taken.

Results of tests conducted by the State Laboratory indicate the presence of traces of road diesel in several samples taken from a variety of locations, including Co. Mayo, during August and September.  This could indicate that petrol was contaminated with road diesel at some point in time.  The Commissioners have confirmed that no evidence of petrol stretching has been found in the samples taken in County Mayo and, as a result, there is no evidence of an excise related offence in these instances.

If the problems that have come to light were caused by unintended contamination as a result of diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Revenue Commissioners are investigating the possibility of tax fraud being associated with the identified problems. In any instances where the analysis of petrol samples indicates the presence of illegal stretching agents in petrol, Revenue will, in the appropriate cases, take swift and robust action and pursue prosecutions against offenders. Revenue are continuing to work closely with An Garda Síochána and sharing information and intelligence with them on this issue. I am also advised by Revenue that they continue to undertake an extensive programme of compliance and enforcement actions to ensure adherence to the legal requirements governing the supply and sale of mineral oil and to allow action to be taken against fraud.

I am satisfied that the Revenue Commissioners are taking all possible action to identify the problem and challenge any instances of identified fuel fraud.

Tax Data

Ceisteanna (192)

John Browne

Ceist:

192. Deputy John Browne asked the Minister for Finance the number of taxpayers here; and if he will make a statement on the matter. [10001/15]

Amharc ar fhreagra

Freagraí scríofa

I assume that the Deputy is inquiring about the number of tax registrations. I am advised by the Revenue Commissioners that a wide range of statistical information is now available on their enhanced statistics web page at www.revenue.ie/en/about/statistics/index.html, including details regarding the number of registrations for different taxes at http://www.revenue.ie/en/about/statistics/registrations-assessment.pdf.

If the Deputy is referring to the number of income taxpayers, I am informed by the Revenue Commissioners that in 2012, there were approximately 2.1 million taxpayer units (married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit). Detailed statistical breakdowns of these cases are available at www.cso.ie/px/pxeirestat/pssn/rv01/homepagefiles/rv01_statbank.asp under the "Income Tax and Corporation Tax Distribution Statistics" heading.  Figures are available currently for years up to 2012, the last year for which returns have been filed and fully processed. Data for 2013 and 2014 are not available as yet but these web pages will be updated in due course.

Fuel Inspections

Ceisteanna (193, 194, 197)

Michelle Mulherin

Ceist:

193. Deputy Michelle Mulherin asked the Minister for Finance the initial and ongoing training provided to officials of the Revenue Commissioners to take samples of petrol and diesel from bulk fuel transportation vehicles; the person providing the training; and if he will make a statement on the matter. [10023/15]

Amharc ar fhreagra

Michelle Mulherin

Ceist:

194. Deputy Michelle Mulherin asked the Minister for Finance the number of samples of petrol and diesel that have been taken from bulk fuel transportation vehicles by officials from the Revenue Commissioners for each of the years 2011, 2012, 2013, 2014 and 2015 to date; and if he will make a statement on the matter. [10025/15]

Amharc ar fhreagra

Michelle Mulherin

Ceist:

197. Deputy Michelle Mulherin asked the Minister for Finance the health, safety and environmental standards, protocols and procedures that apply to the taking of petrol and diesel samples from bulk fuel transportation vehicles by officials from the Revenue Commissioners; and the number of officials who are fully trained and certified as qualified to take such samples; and if he will make a statement on the matter. [10042/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 193, 194 and 197 together.

I am advised by the Revenue Commissioners that combatting fuel fraud is a priority for them, and that their comprehensive strategy for tackling this form of criminality encompasses the carrying out of checks and controls at all stages of the fuel supply chain. This involves, among other things, the checking and inspection of bulk fuel transportation vehicles, including, from time to time, the taking of fuel samples from such vehicles.

The checking of vehicles and the taking of fuel samples may be carried out only  by officers who have been authorised by the Revenue Commissioners to do so, and only officers who have received appropriate training may take samples. This training is provided by a qualified mechanic who is a Revenue employee, in conjunction with Revenue's Training Branch, and covers the correct procedures for obtaining samples, the safe use of specialised equipment for doing so and health and safety matters, including the appropriate isolation from members of the public of the vehicle from which a sample is being taken.

I am informed also that the sampling of bulk transportation vehicles is undertaken in accordance with strict health and safety protocols, and may be carried out only by officers trained specifically for that task. To date, 35 officers, based at locations around the country, have received this training.

The specific safety regime applied in respect of a vehicle from which samples are being taken depends on the type of fuel being carried by the bulk fuel transportation vehicle. Vehicles carrying diesel type fuels (that is, road diesel, marked gas oil or kerosene) may occasionally, depending on the nature of the location concerned, be sampled at roadside checkpoints. Bulk fuel transportation vehicles carrying petrol or suspected of doing so are always removed to a safe and secure location for the carrying out of the sampling. A health and safety risk assessment is carried out by the senior officer present before a decision is made to proceed with sampling.

The numbers of samples of petrol and diesel that have been taken from bulk fuel transportation vehicles from 2011 to date are set out in the following table.

Year

Total No. Samples

2011

92

2012

76

2013

61

2014

24

2015 (to 6 March)

9

Ministerial Appointments

Ceisteanna (195)

Michael McGrath

Ceist:

195. Deputy Michael McGrath asked the Minister for Finance his plans to appoint an additional public interest director to the board of Bank of Ireland; and if he will make a statement on the matter. [10030/15]

Amharc ar fhreagra

Freagraí scríofa

I can confirm for the Deputy that I have notified Bank of Ireland that my current intention is to appoint a replacement director in due course to the board of Bank of Ireland, following the recent sad loss of Mr. Joe Walsh.

Strategic Banking Corporation of Ireland Funding

Ceisteanna (196)

Pearse Doherty

Ceist:

196. Deputy Pearse Doherty asked the Minister for Finance the reason the full €800 million of Strategic Banking Corporation of Ireland funding has not been allocated; and when the remaining €400 million will be allocated. [10031/15]

Amharc ar fhreagra

Freagraí scríofa

The Strategic Banking Corporation of Ireland (SBCI) was incorporated in September 2014 and since then the SBCI has made considerable progress in building relations with lending partners and in constructing the complex operational capability required to bring products to market. These include establishing operational capability with funders and lending partners, building internal systems and business processes and establishing a team to safely and effectively manage the funding provided on behalf of the State.

As the Deputy will be aware, the SBCI launched its first product programme on 19 February 2015 and lending commenced on 9 March 2015 through both Bank of Ireland and Allied Irish Bank Plc.  An initial sum of €400m has been allocated between Bank of Ireland and Allied Irish Banks Plc. for lending to SMEs.  The Government's aim for the SBCI is to enhance the range and profile of SME finance providers in Ireland.  The SBCI will achieve this by working with existing and new providers to develop specific funding products and by supporting new entrants to the SME lending market through allocating the remaining €400m to a number of new and non-traditional SME finance providers.  It is also an objective of the SBCI to encourage competition within the SME funding market through the provision of funding to a broad range of potential lending partners.  

The allocation  of funding across a broader range of lending partners diversifies risk for the SBCI and is prudent in the context of managing funds provided by the state and other funding partners including EIB and KfW.   

At present, the SBCI is actively engaged with other potential lending partners in regards to their operational capability with the ambition to become SBCI lending partners during 2015 thereby providing Irish SMEs with greater choice in securing the most appropriate funding for their business needs.

Question No. 197 answered with Question No. 193.

Disabled Drivers and Passengers Scheme

Ceisteanna (198)

Seán Fleming

Ceist:

198. Deputy Sean Fleming asked the Minister for Finance the funding provided under the disabled drivers and passengers scheme in 2012, 2013, 2014 and the estimate for 2015; and if he will make a statement on the matter. [10048/15]

Amharc ar fhreagra

Freagraí scríofa

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, and exemption from motor tax in respect of that vehicle and, up to a certain limit, assistance in respect of fuel costs.  Disabled Drivers and Disabled Passengers Scheme operates through the remission or repayment of VRT and VAT, and exemption from Motor Tax, these elements of the Scheme are tax reliefs rather than expenditure items. Accordingly, funding is not provided for these Schemes.

The VRT, excise duty on fuel and VAT foregone to the Exchequer in respect of the Disabled Drivers and Disabled Passengers Scheme in 2012, 2013 and 2014 was €44 million, €43.5 million and €48.6 million respectively. These figures do include the Motor Tax foregone to the Local Government Fund.

The excise relief on fuel will be replaced by a new fuel grant in 2015 which is estimated to cost €8m for the year.

The tax forgone in 2015 in relation to the other elements of the Scheme will be dependent on the numbers availing of the scheme and new members admitted to the scheme in 2015.

VAT Exemptions

Ceisteanna (199, 200)

Jerry Buttimer

Ceist:

199. Deputy Jerry Buttimer asked the Minister for Finance his views on determining the medical services that are exempt from value added tax; and if he will make a statement on the matter. [10054/15]

Amharc ar fhreagra

Jerry Buttimer

Ceist:

200. Deputy Jerry Buttimer asked the Minister for Finance his views on making craniosacral therapy exempt from value added tax; and if he will make a statement on the matter. [10055/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 199 and 200 together.

I am advised by the Revenue Commissioners that the supply of certain medical services generally qualifies for exemption from VAT. Provisions for the VAT exemption applicable to medical services are contained in Paragraphs 2(3) and 2 (7) of Schedule 1 to the Value - Added Tax Consolidation Act 2010. Details of the relevant provisions are as follows:

- Professional medical care services recognised as such by the Department of Health and Children (other than dental or optical services), but only if those services are not supplied in the course of carrying on a business that wholly or partly consists of selling goods.

- Other professional medical care services that, on 1 January 2010, were recognised by the Revenue Commissioners as exempt activities.

These provisions transpose Article 132 (1) (c) of the VAT Directive 2006/112/EC on which Irish VAT law is based and with which Irish VAT law must comply.  Professional medical care services recognised by the Department of Health and Children, and which qualify for VAT exemption, are generally those medical care services supplied by health professionals who are enrolled, registered, regulated, or designated on the appropriate statutory register provided for under the relevant legislation in force in the State or equivalent legislation applicable in other countries.  These include persons registered under the Medical Practitioners Act 2007, persons registered under the Nurses Act 1985 and dieticians, occupational therapists, orthoptists, physiotherapists, psychologists, radiographers and speech and language therapists designated under Section 4(1) of the Health and Social Care Professionals Act 2005. The exemption also applies to chiropodists, chiropractors and osteopaths since these medical care services were recognised by the Revenue Commissioners as exempt activities on 1 January 2010.

Other services, including craniosacral therapy, cannot benefit from the medical services exemption except in the very unusual circumstances where a doctor makes a composite supply for a single consideration of exempt medical services and craniosacral therapy and the exempt services are regarded as the principal supply. In these circumstances the entire supply is treated as exempt. I would refer the Deputy to the Revenue publication Medical Service on the Revenue website that provides additional information in relation to the VAT treatment of Medical Services (http://www.revenue.ie/en/tax/vat/leaflets/medical-services.html#appendixa).

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