Written Answers Nos. 117-135
117. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection the position regarding an appeal under the carer's allowance scheme by a person (details supplied) in County Limerick; when a decision will issue; and if she will make a statement on the matter. [30367/15]
Amharc ar fhreagraThe Social Welfare Appeals Office has advised me that an appeal by the person concerned has been 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 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.
118. Deputy Billy Kelleher asked the Tánaiste and Minister for Social Protection if she will provide, in tabular form for 2013 and 2014 and for 2015 to date, the number of persons regarding whom her Department requested the Health Service Executive to provide personal data on, under section 8 of the Health (Alteration of Criteria for Eligibility) Act 2013, where the data is required to calculate the means of a person, in order to assess or review entitlements to benefits and services provided under the Social Welfare Acts. [30375/15]
Amharc ar fhreagraThe Department of Social Protection does not seek or receive personal details from the Health Service Executive in order to establish Social Welfare entitlements.
119. Deputy Sandra McLellan asked the Tánaiste and Minister for Social Protection the number of participants employed on the JobBridge scheme for child care provision placements. [30382/15]
Amharc ar fhreagraAs at 9th July 2015, a total of 43,144 individuals commenced JobBridge internships since the launch of the programme and there are currently 5,111 individuals on a placement.
To date, a total of 728 individuals commenced childcare provision internships and there are currently 95 interns in such placements.
121. Deputy Catherine Murphy asked the Tánaiste and Minister for Social Protection if she is aware that jobseekers engaging in return to work interviews have been obligated to hand in advice to employers of a grant of €10,000 that is available to employers for every curriculum vitae the employee submits; that the jobseekers have no choice in submitting this letter along with their curriculum vitae, and that they are not permitted to hand their curriculum vitae alone to prospective employers; if she has a defined policy in this regard; if that is a policy position that has recently changed; and if she will make a statement on the matter. [30415/15]
Amharc ar fhreagraThe JobsPlus incentive is designed to encourage employers and businesses to focus their recruitment efforts on those who have been out of work for long periods or on young people seeking work. JobsPlus provides a direct monthly financial incentive to employers in the form of a monthly grant paid over two years with two levels of grant payable - €7,500 or €10,000 provided the employment is maintained. The level of payment depends on the length of time the person is unemployed.
Eligibility was broadened in 2015 to include young jobseekers (under 25 year olds) unemployed for four months or more in the previous 6 months, and jobseekers transitioning from a one parent family payment.
In June 2015, 3,674 employers were paid approximately €1.94m in respect of 5,017 employees. A total of €23.3m has been paid to employer since commencement of payments on JobsPlus in September 2013 to the end June 2015. Some €10.42m has been paid this year to the end of June 2015.
As a key part of the Pathways to Work strategy to assist people to return to work, the Department’s case officers deliver activation and case management services through Intreo centres and through the network of Departmental offices which are currently transitioning to a full Intreo service. Case officers generally work in teams dedicated to activating clients and supporting them in various ways in their efforts to regain employment. In addition, and as part of this supportive approach, it is considered good practice that the various pro-employment financial incentives offered and funded by the Department and available to both employees who return to work and to employers who recruit from the Live Register are highlighted and take-up promoted. It is also considered good practice that jobseekers engaging with a case officer should prepare or update their CVs to facilitate job search.
I can confirm that clients are not obligated to hand in advice relating to available employer supports to prospective employers with their CV. However, jobseekers who are within an activation process and who become long-term unemployed, are advised that it is in their interest to inform any prospective employer of the financial benefit the employer may receive under the JobsPlus programme, if the jobseeker is hired by them. The Department has provided an online ready reckoner(https://www.welfare.ie/en/Pages/Ready-Reckoner.aspx) to show the benefits of returning to work. Other supports for jobseekers are available on www.allaboutjobs.ie.
122. Deputy Terence Flanagan asked the Minister for Finance the reason there is value added tax on the environmental tax on gas bills; and if he will make a statement on the matter. [29717/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that VAT is an EU-wide tax and Irish VAT law must comply with the EU VAT Directives. Article 78 of EU Council Directive 2006/112/EC provides that the taxable amount shall include taxes, duties, levies and charges, excluding the VAT itself. This is transposed in section 37(1) of the Value-Added Tax Consolidation Act 2010 which provides that the amount on which Value-Added Tax is chargeable is the total consideration receivable by the supplier, including all taxes, commissions, costs and charges whatsoever but not including the Value-Added Tax itself. Accordingly, VAT is chargeable on the environmental tax element in the supply of any fuel product.
123. Deputy Dara Calleary asked the Minister for Finance the amount of lending undertaken by the National Pensions Reserve Fund small and medium-sized enterprises credit fund to date; the number of projects involved; the number of jobs supported; the percentage of applications approved; the way the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [29828/15]
Amharc ar fhreagra124. Deputy Dara Calleary asked the Minister for Finance the amount of investment undertaken by the National Pensions Reserve Fund small and medium-sized enterprises equity fund to date; the number of projects involved; the number of jobs supported; the percentage of applications approved; the way the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [29829/15]
Amharc ar fhreagraI propose to take Questions Nos. 123 and 124 together.
Due to commercial sensitivities the Ireland Strategic Investment Fund (ISIF) does not report on economic impact at individual transaction level, but instead at the aggregate portfolio level.
The €450 million BlueBay SME Credit Fund has completed 11 loan transactions totalling approximately €190 million as at 30 June 2015.
The €292 million Carlyle Cardinal Ireland (CCI) SME Equity Fund, has concluded 4 transactions as at 30 June 2015, with investments completed to date in Lily O'Briens, GSLS, Carroll Cuisine and Payzone.
The ISIF recently published its first Baseline Economic Impact Report. Key figures show that as at 31 December 2014:
- ISIF had committed €1.4 billion to investments in Ireland, with €726 million already drawn down.
- 79 Irish companies and projects with a combined annual turnover of €472 million benefit from ISIF investment.
- Approximately 8,362 jobs are supported directly and indirectly by ISIF investments.
- At 31 December 2014, the funds ISIF invested in had significant engagement throughout the Irish market - with 3,573 engagements and 99 completed investments since inception. The BlueBay SME Credit Fund does not operate an application process, but its activity is included in these figures.
Further information is available online at: http://www.ntma.ie/business-areas/ireland-strategic-investment-fund/.
The ISIF has advised that the BlueBay SME Credit Fund and the CCI SME Equity Fund continue to be active in the Irish lending market, have a strong transaction pipeline and are focused on deployment of the remainder of their capital pool.
125. Deputy Dara Calleary asked the Minister for Finance the amount of investment undertaken by the National Pensions Reserve Fund turnaround fund to date; the number of projects involved; the number of jobs supported; the percentage of applications approved; the way the operation of the fund compares to the initial targets set for it; the future plans for the fund; and if he will make a statement on the matter. [29830/15]
Amharc ar fhreagraFollowing the commencement of the relevant section of the National Treasury Management Agency (Amendment) Act 2014 on 22 December 2014 the assets of the National Pensions Reserve Fund (NPRF) became the assets of the Ireland Strategic Investment Fund (ISIF).
The ISIF has advised that the Turnaround Fund was focused on turnaround investing in troubled companies as the Irish economy dealt with the financial crisis. A defined short investment period of two years was set due to the expectation that distressed turnaround investment opportunities would only be available for a limited period. In the context of improving market conditions, financial institutions and business owners experienced a much reduced need for restructuring capital investment into distressed businesses as compared with initial expectations. This meant that the Turnaround Fund did not complete any transactions. The investment period expired at the end of December 2014 and, by mutual agreement between the NTMA and Better Capital, was not extended.
126. Deputy Brian Walsh asked the Minister for Finance if he will provide an update in relation to the provision of approval from the European Commission in relation to the extension of the employment and investment incentive to include the management and operation of nursing homes; and if he will make a statement on the matter. [29985/15]
Amharc ar fhreagraAs the Deputy is aware, a number of amendments to the EII were announced in the recent Budget:
- The scheme has been expanded to include, subject to certain conditions, medium-sized enterprises in non-assisted areas, the management and operation of nursing homes and to internationally traded financial services as certified by Enterprise Ireland. This will result in an increase in the number of businesses that will be able to qualify for relief under the scheme;
- The amount that can be raised by a company in a 12 month period has been raised from €2.5 million to €5 million. The lifetime limit on the amount that can be raised has been increased from €10 million to €15 million;
- The holding period for shares issued under the EII has been increased from 3 to 4 years; and
- The amount of tax relief available to an investor has been revised in line with the reduction in income tax rates announced in Budget 2015.
As the Deputy has mentioned, the EII is an approved State Aid scheme and, as such, approval must be sought from the European Commission before any of the changes can be commenced. My officials have submitted the application to the Commission in relation to the amendments and are engaged in ongoing discussions with the Commission in relation to the proposed changes. However, at this stage, it is not possible to indicate when the approval of the European Commission will be forthcoming. The amendments will be commenced, as soon as possible, once approval has been received.
127. Deputy Robert Troy asked the Minister for Finance his plans to reduce carbon tax on Bord na Móna products to ensure future sustainability. [30191/15]
Amharc ar fhreagraThe introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment. It should be noted that as solid fuels have the highest carbon content of all fossil fuels they are considered the dirtiest fuels and given the environmental impact it is important that they are taxed.
While tax increases are unpopular, it makes sense to increase taxes in areas where some benefits can arise, in this instance a carbon tax promotes energy efficiency, reduces emissions and reduces our dependence on imported fossil fuels.
The Public Service Obligation (PSO) is the support mechanism for the generation of electricity using specific products including peat. It is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers. The PSO levy is vital to enable Ireland to meet its 40% target for electricity generated from renewable sources by 2020, which in turn is important for the achievement of Ireland's 16% EU 2020 target for renewable energy.
Carbon tax is deemed to be the most cost effective way of reducing overall emissions and reaching our EU 2020 emission targets of a reduction of greenhouse gases by 20% on 2005 levels. Accordingly, I do not intend to reduce the rate of carbon tax on Bord Na Móna products.
128. Deputy Terence Flanagan asked the Minister for Finance his Department's priorities for the remainder of this Dáil; and if he will make a statement on the matter. [29585/15]
Amharc ar fhreagraMy Department remains focused on maintaining the reform momentum necessary to achieve the goals of creating more jobs, enhancing living standards and, ultimately, achieving full employment as set out in the Government's Statement of Government Priorities 2014-2016. This statement prioritises the actions needed to build on the economic recovery that is already under way to ensure that the benefits of the recovery are felt by everyone across the country.
My Department published its Statement of Strategy 2015-2017 that was laid before the Houses of the Oireachtas in March of this year. This lists the Programme for Government commitments and those emerging priorities that come under the remit of the Department of Finance. My Department continues to make steadfast progress against these strategic goals and underlying actions to achieve our mission. Building on good progress made in the first half of 2015, our attention is now focussed on Budget 2016 and continue development of a well regulated, vibrant and secure financial sector that supports economic growth.
129. Deputy Sean Fleming asked the Minister for Finance the position regarding the payment of claims due by Setanta Insurance; the level of payments that are expected to be made; the approximate time frame for this matter to be dealt with; and if he will make a statement on the matter. [29606/15]
Amharc ar fhreagraSetanta Insurance Company Limited is a Maltese incorporated company. Setanta was formally placed into liquidation by the Maltese Financial Services Authority on 30th April 2014 when a liquidator was appointed under the provisions of the Maltese Companies Act 1995. The liquidation is proceeding according to Maltese law.
The liquidation of an insurance company is a legally complex and time consuming process. The Liquidator has advised that settlements and refunds of premiums can only be paid out by the Liquidator after all of the Company's liabilities are quantified. Since it could some time for a particular case to be finalised and, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim, it may take some years before the liquidation process is completed. The Liquidator has informed my Department that based on current claims estimates, he does not expect to be in a position to meet more than 30% of the amounts due to Setanta creditors.
The Insurance Compensation Fund provides for payments to meet the liabilities of insolvent non-life insurers in certain cases where it is unlikely that claims can be met otherwise than from the ICF. Under the Insurance Act 1964, in a liquidation all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. In the immediate aftermath of the announcement of the liquidation of Setanta, my officials were informed by Insurance Ireland that the Motor Insurers' Bureau of Ireland had indicated that they intended to accept all third party claims. However, the MIBI obtained a legal opinion and, having considered it, they advised the Minister for Transport, Tourism and Sport in late July 2014 that the 2009 Agreement with him does not require the MIBI to satisfy awards against drivers covered by a policy of insurance where the insurer is unable to pay all or part of an award because of insolvency.
The respective roles of the Insurance Compensation Fund and the Motor Insurers' Bureau of Ireland in the compensation of former Setanta policyholders is currently a matter for decision before the High Court. The matter was heard by Mr Justice Hedigan on 13th/14th July 2015. There are no indications yet as to when the outcome of the case can be expected.
My Department and the Central Bank will in due course be reviewing the circumstances relating to Setanta and will be reporting to me on what lessons can be learnt and how the framework can be strengthened. However, since Setanta is a Maltese authorised company subject to prudential supervision by the Malta Financial Services Authority, any follow-up investigation on the regulatory issues surrounding the firm's failure falls under the responsibility of the MFSA as home regulator.
130. Deputy Michael McGrath asked the Minister for Finance if he will provide, from the records of the Revenue Commissioners, for each of the years 1990, 1995, 2000, 2005, and 2010 to 2013, the number of income earners; the average total income of the top 0.1%; the next 0.9%; the next 4%; the next 5% earners; the next 40%; and the next 50% of earners. [29615/15]
Amharc ar fhreagraI am informed by Revenue that, given the volume of Questions received for answer today, it has not been possible to compile the information requested in the time available. A response is being prepared and will be forwarded to the Deputy as soon as possible.
131. Deputy Pearse Doherty asked the Minister for Finance the revenue to the Exchequer from applying caps of €800,000; €900,000; and €1 million, to principal private residence capital gains tax relief. [29619/15]
Amharc ar fhreagraI am informed by Revenue that, as tax returns require information in respect of the consideration associated with the disposal of principal private residences but not the actual capital gain, there is no basis for separately identifying the yield that would arise from applying the caps to the relief as proposed by the Deputy. As the Deputy will be aware, Capital Gains Tax is applicable on the gain rather than the consideration amount. Accordingly the specific information requested by the Deputy is not available.
132. Deputy Billy Kelleher asked the Minister for Finance if he will provide, in tabular form, for 2013 and 2014 and for 2015 to date the number of persons concerning whom the Revenue Commissioners provided data to the Health Service Executive, under section 8 of the Health (Alteration of Criteria for Eligibility) Act 2013. [29721/15]
Amharc ar fhreagraI am advised by Revenue that the number of individuals about whom data has been provided, on request, to the Health Service Executive (HSE) under section 8 of the Health (Alteration of Criteria for Eligibility) Act 2013 is as follows:
|
Date |
No. of persons |
|
October to December 2013 |
247,093 |
|
2014 |
965,340 |
|
2015 to date |
558,658 |
The nature of the data supplied by Revenue to the HSE generally consists of details of income returned by the taxpayer in their tax return or, in the case of PAYE taxpayers, income details provided by their employer. It should be noted that for a significant number of individuals in respect of whom Revenue receives requests from the HSE, Revenue would have no income details on its records for those persons because, for example, their only source of income is a pension from the Department of Social Protection. These individuals are included in the numbers shown in the table above.
I am advised by Revenue that a Data Exchange Agreement has also been signed by both organisations which sets out their respective roles and responsibilities in connection with data exchanges.
133. Deputy Michael McGrath asked the Minister for Finance the average interest rate applying to each source of funds under the European Union-International Monetary Fund programme of assistance for Ireland; and if he will make a statement on the matter. [29726/15]
Amharc ar fhreagra153. Deputy Michael McGrath asked the Minister for Finance the average maturity of the remaining European Union-International Monetary Fund loans under Ireland’s programme of assistance; and if he will make a statement on the matter. [29750/15]
Amharc ar fhreagraI propose to take Questions Nos. 133 and 153 together.
I am advised by the National Treasury Management Agency (NTMA) that the position regarding the EU/IMF Programme loan facilities, including interest rates and maturities, as at end-June 2015, is as set out in the following table.
|
Facility |
Loan Amount (bn) |
€ Equivalent (bn)1 |
Interest Rate on Loan Amount |
Reference Rate Basis |
Weighted Average Maturity (Years) |
|
EFSM |
€22.5 |
22.5 |
3.00% |
Fixed rate based on EFSM cost of funds2 |
8.63 |
|
EFSF |
€18.4 |
18.4 |
2.17% |
Some fixed but mainly pooled rate based on EFSF cost of funding |
17.64 |
|
UK |
£3.2 |
3.9 |
2.61%5 |
Fixed, based on UK cost of funding |
4.7 |
|
Sweden |
€0.6 |
0.6 |
1.00%6 |
Floating 3-month Euribor plus 1% margin |
5.2 |
|
Denmark |
€0.4 |
0.4 |
1.01%6 |
Floating 3-month Euribor plus 1% margin |
5.1 |
|
IMF |
SDR3.8 |
4.3 |
1.05% |
Floating SDR rate plus 1% margin |
6.5 |
1 The € equivalent figures reflect the effect of currency hedging transactions where applicable.
2 The interest rate on Ireland's EFSM loans is based on the EFSM's cost of funds when it issues bonds. Such issuance is matched against the loans.
3 As with the EFSF loan maturity extensions agreed in June 2013, EFSM loans are also subject to a seven year extension. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. However as the revised maturity dates of individual EFSM loans will only be determined as they approach their original maturity dates, the weighted average maturity figure of 8.6 years does not reflect the maturity extensions.
4 Reflects maturity extensions agreed in June 2013.
5 Annualised rate.
6 Annualised rates reflecting 3-month Euribor interest rate at time of most recent rate resets.
The Deputy should be aware that the mixture of floating and fixed interest rates across the various EU/IMF Programme facilities makes it difficult to compare one facility directly against another as they contain different interest rate risk profiles, currencies and maturities. In addition, the floating interest rates quoted are at a point in time and are, therefore, subject to change depending on movements in market rates.
The Deputy will see from the table that the interest rate on the outstanding IMF loan balance at end-June 2015 is 1.05 per cent. This comprises the SDR interest rate of 0.05 per cent plus a 1 per cent margin. The more expensive portion of the IMF loan facility has now been fully repaid and so surcharges previously applicable no longer apply.
134. Deputy Michael McGrath asked the Minister for Finance the proportion of income earners exempt from income tax in 2015; and if he will make a statement on the matter. [29727/15]
Amharc ar fhreagra146. Deputy Michael McGrath asked the Minister for Finance the percentage of self-employed persons who are outside the income tax net; and the way this compares to the percentage of pay as you earn workers who have no income tax liability. [29743/15]
Amharc ar fhreagra161. Deputy Michael McGrath asked the Minister for Finance the number of income earners who are exempt from the universal social charge; who pay a maximum rate of 4%; and who pay the 7% rate; and if he will make a statement on the matter. [29778/15]
Amharc ar fhreagra162. Deputy Michael McGrath asked the Minister for Finance the cost of increasing the standard rate band from the current €33,800 by €500; €1000; €1,500; and €2,000; and if he will make a statement on the matter. [29779/15]
Amharc ar fhreagra173. Deputy Michael McGrath asked the Minister for Finance the number of persons who paid income tax on maternity benefits in 2013 and 2014; the total yield from taxation of maternity benefits; and if he will make a statement on the matter. [29797/15]
Amharc ar fhreagra174. Deputy Michael McGrath asked the Minister for Finance the cost in 2015 of retaining the exemption which was due to expire on 1 January 2015 from the 7% rate of universal social charge for those with medical cards who have an aggregate income below €60,000; and if he will make a statement on the matter. [29800/15]
Amharc ar fhreagraI propose to take Questions Nos. 134, 146, 161, 162, 173 and 174 together.
I am informed by Revenue that an estimated 38% of income earners are exempt from income tax in 2015. The estimated percentages of self-assessed income earners and PAYE income earners who are exempt from income tax are 36% and 38% respectively.
In relation to the Deputy's questions on USC and standard rate bands, I am informed by Revenue that the number of income earners at each rate of the Universal Social Charge (including exempt cases) and the estimated cost of increasing the standard rate band can be found on page 3 and page 7 respectively of Revenue's Ready Reckoner, available on Revenue's statistics website at http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf. While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro rata basis with those displayed in the Reckoner.
In relation to the taxation of maternity benefits, I am informed by Revenue that the latest information available regarding maternity benefit is for the year 2013. The estimated number of income earners who paid income tax on maternity benefit in 2013 is 19,900 and the estimated yield from taxation of maternity benefit from the 1st July 2013 is €20 million.
Regarding the Deputy's question in relation to the exemption from the 7% rate of USC for medical card holders with an aggregate income below €60,000, Revenue has informed me it tentatively estimates that the first and full year cost of retaining the exemption is €90 million and €120 million respectively.
All figures above (and those in the Ready Reckoner) are estimates for 2015, using the actual data for the year 2012 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
135. Deputy Michael McGrath asked the Minister for Finance the revenue that would be raised by reducing the annual earnings limit, along with age-related percentage limits for maximum tax relievable contributions for pension purposes, from €115,000 to €100,000; to €90,000; to €80,000; and to €70,000; and if he will make a statement on the matter. [29728/15]
Amharc ar fhreagraI assume that the Deputy is referring to the current annual earnings cap of €115,000, which operates to limit the level of tax-relieved personal pension contributions in any one year. The annual earnings cap acts, in conjunction with age-related percentage limits of annual earnings, to put a ceiling on the annual amount of tax relief an individual taxpayer can obtain on pension contributions.
A breakdown of the cost of tax relief on employee contributions to occupational pension schemes is not available as tax returns by employers of employee contributions to such schemes are aggregated at employer level. An historical breakdown is available by tax rate of the tax relief claimed on contributions to personal pension plans Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) by the self-employed and others, to the extent that the contributions have been included in the personal tax returns of those taxpayers. There is, therefore, only a limited statistical basis for providing definitive figures. However, Revenue advises me that the impact to the Exchequer from reducing the annual earnings cap for individual contributions to occupational pension schemes, RACs and PRSAs may be tentatively estimated. Such estimates take no account of any behavioural impacts that may arise from the proposed changes and that could affect the scale of any yield.
I am informed by Revenue that on the above basis, the estimated yield of reducing the ceiling can be found on page 11 of Revenue's Ready Reckoner, available on Revenue's statistics website at http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf.
