Written Answers Nos. 79-91
79. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the correct level of Jobseeker's Allowance or alternative payment in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25617/15]
Amharc ar fhreagraThe person concerned has been in receipt of a jobseeker's allowance payment since April 2014 and commenced in casual employment in November 2014. For each day that she is employed she has means assessed and deducted at a rate of €27.00 per day. According to the records of this Department the person concerned is not currently employed, and is in receipt of a jobseeker's allowance payment at the rate of €432.00 per week. This is the maximum rate of jobseeker's allowance payment for a person with her family composition.
80. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if and when a back to school allowance might be awarded in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25618/15]
Amharc ar fhreagraThe Department will make automatic payments of back to school clothing and footwear allowance (BSCFA) to approximately 106,000 people week ending 17 July 2015.
The person referred to by the Deputy is not among the group of customers selected for automatic payment so they will have to complete an application form. An application form has been sent to the person concerned which should be completed and returned to the Social Welfare Services office in Sligo along with the necessary supporting documentation. On receipt of the application the person's entitlement to BSCFA will be examined.
81. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection indicate the reason a back to work enterprise allowance was not approved in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25620/15]
Amharc ar fhreagraThe person concerned applied for the Back to Work Enterprise Allowance Scheme (BTWEA) in order to commence business as a sub-contractor. The application was refused as persons engaged as sub-contractors are not eligible under the conditions of the BTWEA scheme. It is open to the person concerned to apply for a jobseeker's allowance as a self-employed person, and have the means from his business activities assessed.
82. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if a Back to School Allowance is payable in the case of a person (details supplied); and if she will make a statement on the matter. [25621/15]
Amharc ar fhreagraThe Department will make automatic payments of back to school clothing and footwear allowance (BSCFA) to approximately 106,000 people week ending 17 July 2015.
The person referred to by the Deputy is not among the group of customers selected for automatic payment so they will have to complete an application form. An application form has been sent to the person concerned which should be completed and returned to the Social Welfare Services Office in Sligo along with the necessary supporting documentation. On receipt of the application the person's entitlement to BSCFA will be examined.
83. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if and when Rent Support will be paid in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25623/15]
Amharc ar fhreagraDepartmental records show that the person concerned changed her residence from an address in Co. Kildare to an address in Dublin in recent days. To date there is no record of an application for rent supplement being received in the Department. Should an application for this scheme be received from the person concerned, her eligibility will be assessed.
84. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the reason Jobseeker's Allowance or a Back to Work Enterprise Scheme payment has not been paid in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25624/15]
Amharc ar fhreagraAs advised to the Deputy in reply to PQ Ref No: 22906-15 on 11th June, 2015, the jobseeker's allowance claim for the person concerned, is currently suspended, pending receipt of bank statements as requested by a Social Welfare Inspector in March, 2015. The required documentation should have been provided to the Department by 19th June, 2015 but remains outstanding. To allow a final opportunity to the person concerned the claim will remain suspended until July 1st and will then be closed.
85. Deputy Robert Dowds asked the Minister for Finance further to Parliamentary Question No. 324 of 9 June 2015, if it is his understanding that the new mortgage products leading to lower payments for borrowers, which he has received a commitment from the banks to roll out in July 2015, will be available to all variable rate mortgage holders, including investors and-or those holding buy-to-let mortgages; and if he will make a statement on the matter. [25445/15]
Amharc ar fhreagraAs the Deputy is aware, I met with senior management of Ireland's six main mortgage providers in May. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks, with a specific focus on Private Dwelling House (PDH) customers.
The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for Standard Variable Rates (SVRs) customers in respect of PDH. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.
The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments.
In addition to the issue of rates I also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.
While no commitment was received in relation to BTLs, it is accepted that additional competition will have the effect of reducing prices to consumers on all products, including mortgage interest rates for Principal Dwelling Houses and Buy-to-Let mortgages. For example, lower rates are available for many standard variable mortgage customers if they switch lender. The banks must be convinced that they are at risk of losing customers if they persist with SVRs that are higher than the rate their customers could get elsewhere. People who are in a position to move their business to another bank should look into their options to do so. The Competition and Consumer Protection Commission website at consumerhelp.ie has useful information on comparing bank products and I understand that the CCPC is planning to provide better information to encourage mortgage switching. I fully accept that this is not an option for everyone but I would encourage people to take the time to explore it.
The Government made a commitment in the Statement of Government priorities 2014 to 2016 to applying downward pressure on mortgage rates by increasing and supporting competition in the market and it will continue to work to fulfil that commitment.
Officials in my Department will review progress over the coming weeks and a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.
86. Deputy Pearse Doherty asked the Minister for Finance if he will provide a list of the persons and organisations invited to take part in the national economic dialogue on 16 and 17 July 2015. [25457/15]
Amharc ar fhreagraMinister Howlin and I will host the National Economic Dialogue in Dublin Castle on 16 -17 July next. This will be an important element of Ireland's new budgetary framework.
The objective of the dialogue is to facilitate an open and inclusive exchange on the competing economic and social priorities facing the Government as we prepare for budget 2016. It will be informed by the macro-economic and fiscal parameters, including the EU budgetary framework, which were set out in the Spring Economic Statement.
Representatives of community, voluntary and environmental groups as well the opposition, business, unions, research institutes, the academic community, the media and the diaspora have all been invited. The plenary sessions will also be live streamed and can be followed by all of those with an interest.
As initial responses are received, we are in the process of finalising the invitee list. Our aim is that the dialogue be as open and inclusive as possible, while also ensuring that there can be a genuine two way engagement with all participants. I will be happy to provide the full list of persons and organisations who have been invited once it has been finalised.
87. Deputy Jack Wall asked the Minister for Finance further to Parliamentary Question No. 71 of 11 June 2015, if information (details supplied) can determine the entitlements of the person to an increase in the person's pension; and if he will make a statement on the matter. [25467/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that tax legislation specifies that the maximum pension an individual may receive from an occupational pension scheme at normal retirement age is restricted to two-thirds of final remuneration. Therefore final remuneration is a key concept in determining the benefits an individual becomes entitled to on retirement. The rules of the pension scheme of which the individual is a member would define the remuneration on which her pension benefits will be calculated and whether or not this lump sum can be included in computing her pension entitlements. All pension benefits are calculated in accordance with the rules of the particular scheme.
In order to establish whether or not the payment in question is reckonable for pension purposes the individual concerned should contact the administrator of the pension scheme of which she is a member.
88. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding Irish trotting and harness racing; and if he will make a statement on the matter. [25469/15]
Amharc ar fhreagraI assume that the Deputy is referring to requests that a tote licence be issued to bodies providing trotting and harness racing in Ireland. The tote was established under the Totalisator Act 1929 and to date Bord Na gCon and Horse Racing Ireland (or their predecessors) are the only bodies licensed to operate a tote. The primary purpose of this arrangement is to fund the horse and greyhound racing industry in Ireland.
As the Deputy will be aware that the operation of the tote is to be reviewed in the context of the forthcoming Gambling Control Bill which is currently under preparation by my colleague the Minister for Justice and Equality. The provisions of that legislation will be fundamental in any consideration of the issue raised by the Deputy.
89. Deputy Patrick O'Donovan asked the Minister for Finance his views on a matter (details supplied) regarding Capital Gains Tax; and if he will make a statement on the matter. [25484/15]
Amharc ar fhreagraCapital gains tax applies to gains in respect of land which is acquired under a compulsory purchase order (CPO). The rate of capital gains tax is currently 33%.
When agricultural land is acquired under a CPO, the acquiring authorities usually pay a premium over the agricultural value. The premium may cover the tax due on the disposal and the farmer may well have received the agricultural value of the land in his or her net proceeds after disposal. This means farmers are generally able to buy agricultural land of equivalent value to the land acquired under the CPO.
In my Budget 2014 speech I announced that an Agri-Taxation Review would be undertaken. The review has been carried out and the report of the Review was published in the context of Budget 2015 in October last year. The Review bore Food Harvest 2020, among other things, in mind. It sets out a strategy for agri-taxation policy for the future and concluded that the three main policy objectives are:
- To increase the mobility and the productive use of land
- To assist succession
- To complement wider agriculture policies and schemes, such as supporting environmental sustainability
The Review made policy recommendations taking into consideration the cost of the existing agri-taxation measures that were already in existence and the need to protect the position of the public finances. Many of the recommendations made were introduced by way of the last Budget and Finance Bill process including amendments to income tax land leasing reliefs and CGT retirement relief. However, the Review did not recommend change to the tax treatment of land disposed under a CPO.
The Review may be of interest to the Deputy and is available at the following link:
http://www.budget.gov.ie/Budgets/2015/Documents/Agritaxation_%20Review%20_Final_web-pub.pdf
CGT retirement relief is available, among other conditions, in respect of land which has been owned and used for the purposes of farming by the individual disposing of the land for a minimum period of 10 years prior to being disposed of. In order to qualify for the relief, the individual must be aged 55 or over. In addition, retirement relief is available in respect of land which has been let by the individual disposing of that land in the period of 5 years prior to the disposal where, immediately before the time the land was first let in that 5-year period, the land was owned and used for the purposes of farming by the individual concerned for a minimum period of 10 years and the disposal is to an authority possessing compulsory purchase powers (for example, a local authority) where the disposal is made:
- for the purposes of enabling the authority to construct, widen or extend a road or part of a road, or
- for a purpose connected with or ancillary to the construction, widening or extension of a road or part of a road by the authority.
I note the Deputy's concerns as set out in the particular example in the details supplied with the question. However, for the reasons I have outlined above, I have no plans to alter the tax treatment of land disposed under CPO.
90. Deputy Catherine Murphy asked the Minister for Finance if he is aware that Allied Irish Banks is currently developing proposals to outsource work and staff from its application and development management teams within its information technology division to a third-party service provider; that the teams play a vital role within the bank's daily operations, including payment processing; if he will consider it detrimental to the public interest for such outsourcing to proceed, especially if the contract was awarded outside the State; the representations he has made to the management of the bank regarding this matter; and if he will make a statement on the matter. [25544/15]
Amharc ar fhreagraAs the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced.
The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.
I have been informed that AIB has not at this stage confirmed any agreement to outsource some of its technology services in Application and Development Management teams to a third party provider. Should any such decision be confirmed, then affected staff will be informed immediately and AIB will enter into a full process of information and consultation with employee representatives, as required both by law and under engagement principles agreed with the Irish Bank Officials Association (IBOA).
91. Deputy Joe Costello asked the Minister for Finance if he will consider maintaining Approved Retirement Fund limits at current levels of income, that is €12,700 income with €63,500 investment, or if he will be proceeding with the proposed increase in limits in March 2016 to an increased level of income of €18,000 and an increased investment of €119,800; and if he will make a statement on the matter. [25553/15]
Amharc ar fhreagraIn Finance Act 2013, I rescinded the Finance Act 2011 changes to the specified or guaranteed pension income requirement for Approved Retirement Fund access which had increased that income requirement from €12,700 to a variable limit based on 1.5 times the State Pension (Contributory) which amounted to €18,000 per annum. At the same time, I also rescinded the Finance Act 2011 change which increased the maximum set aside amount required to be invested in an Approved Minimum Retirement Fund (AMRF) from €63,500 of the remaining pension fund (after taking the permissible tax-free lump sum) to a variable amount equal to 10 times the annual State Pension (Contributory) rounded to the nearest €100 which amounted to €119,800 or the remainder of the pension fund if less than this increased amount. Investment in an AMRF is a requirement for individuals with Defined Contribution pension arrangements who do not meet the specified income requirement and choose not to purchase an annuity.
I re-introduced the original specified income requirement and maximum AMRF set-aside amount on the grounds, among other reasons, that without an appropriate transition period the 2011 Finance Act changes would detrimentally affect the plans of many individuals preparing for retirement over the medium term. The intention at the time of Finance Act 2013 was that the 2011 changes would be re-introduced in 2016.
This matter is being examined in the context of the preparations for Finance Bill 2015 taking account of developments since 2013 and the current situation. I will bear in mind the Deputy's request to maintain the current requirements in that context.
