Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Thursday, 24 Sep 2015

Written Answers Nos. 101-110

Tax Relief Costs

Ceisteanna (101)

Michael McGrath

Ceist:

101. Deputy Michael McGrath asked the Minister for Finance the number of persons who have been granted a personal increase in the standard fund threshold applying to their pensions, in each year since 2011; the cumulative increase represented by these cases; the estimated amount of tax foregone as a result; and if he will make a statement on the matter. [32642/15]

Amharc ar fhreagra

Freagraí scríofa

I take it that the Deputy is referring to the facility available under the Standard Fund Threshold (SFT) regime whereby individuals can seek a Personal Fund Threshold (PFT) in certain circumstances.

The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes. Its purpose is to discourage over-funding and over-accrual of pension benefits through tax-relieved and tax-subsidised arrangements. The regime achieves this by imposing a significant tax charge on the value of retirement benefits above set limits when they are drawn down.

When the SFT limit was reduced in Budget and Finance Act 2011 to a level of €2.3 million, with effect from 7 December 2010, and was further reduced in Budget and Finance (No. 2) Act 2013 to €2 million, with effect from 1 January 2014, the clear legal advice to the Government (as at the time of the original introduction of the regime in 2005) was that an individual who had pension rights in excess of the SFT limit at the relevant dates was entitled to protect or "grandfather" those rights. Accordingly, the legislation provided that such individuals could protect their higher pension values, subject to certain ceilings and conditions, by applying to the Revenue Commissioners for a PFT certificate.

The Deputy is seeking to establish the cumulative level of protection afforded and the estimated tax foregone resulting from the grandfathering arrangements outlined above. The concept of "tax foregone" is arguably more applicable in the context of tax reliefs where there is a choice as to whether to pursue the particular policy stance or not. In that regard, it is important to note that these grandfathering arrangements were not considered optional and were provided in the legislation following legal advice to that effect from the Attorney General. In other words, introducing the SFT regime required the simultaneous protection of pension rights that had been built up legitimately by individuals under the tax provisions that applied up to the relevant dates. This was the firm legal advice to the Government when the SFT was introduced and on each subsequent occasion that the SFT limit was reduced. The choice, therefore, was to introduce the SFT regime, with grandfathering, or not at all.

I am informed by the Revenue Commissioners that, according to their records, since 7 December 2010, when the SFT was reduced to €2.3 million, they have issued 941 PFT certificates with a value of some €2,975 million. Since 1 January 2014, when the SFT was further reduced to €2 million, Revenue has to date issued a further 651 PFT certificates with a total value of some €1,441 million. The combined overall value of PFT certificates issued since 7 December 2010 is, therefore, €4,416 million. The cumulative additional value of pension benefits protected as compared with the SFT limits applying at 7 December 2010 and 1 January 2014, respectively is, therefore, some €950 million.

Revenue Commissioners Audits

Ceisteanna (102)

Michael McGrath

Ceist:

102. Deputy Michael McGrath asked the Minister for Finance the current status of a Revenue Commissioners tax audit of the Irish Bank Resolution Corporation, which was under way at the time of the liquidation; the nature of the investigation; when it is expected it will be concluded; and if he will make a statement on the matter. [32708/15]

Amharc ar fhreagra

Freagraí scríofa

I want to say clearly at the outset that I consider that it would be entirely inappropriate for me to comment on any relationship between the Revenue Commissioners and an individual taxpayer or business. The Revenue Commissioners cannot, for reasons of taxpayer confidentiality, disclose details of or comment publicly on the specific affairs of any individual business or taxpayer and I think that is entirely appropriate. 

I also think that intervention by me in the relationship between the Revenue Commissioners and a particular business or taxpayer would not be appropriate. It is a longstanding convention that the Minister for Finance does not intervene in the relationship between the Revenue Commissioners and an individual taxpayer, I would in that context, remind the House of the provision enacted by the Oireachtas in the Ministers and Secretaries (Amendment) Act 2011 whereby the independence of the Revenue Commissioners in the performance of their functions was enacted in Section 101 of that Act.

As previously outlined to the Deputy, the terms of reference of the proposed Commission of Investigation in relation to IBRC include the following explicit term of reference (1b) dealing with issues of public concern:

The Commission shall investigate all transactions, activities and management decisions, other than those relating solely to the acquisition of assets by NAMA which occurred during the relevant period and which "are specifically identified by the Commission as giving rise or likely to give rise to potential public concern, in respect of the ultimate returns to the taxpayer"

Both Houses of the Oireachtas have approved the terms of reference. It is important that I do not interfere with or prejudice the important work to be conducted by the Commission of Investigation. In those circumstances I have received legal advice that it would be inappropriate for me to comment publicly in relation to certain matters which fall under the scope of the Commission of Investigation.   

Flood Relief Schemes Funding

Ceisteanna (103)

Bernard Durkan

Ceist:

103. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if and when the necessary funding is likely to be approved for drainage and flood prevention works associated with the Morrell river in County Kildare; and if he will make a statement on the matter. [32477/15]

Amharc ar fhreagra

Freagraí scríofa

Kildare County Council (KCC), in consultation with the Office of Public Works (OPW), engaged Consulting Engineers to carry out a Full Feasibility Study, Cost Benefit Analysis (CBA), and Environmental Impact Statement (EIS) on the Lower Morrell River and the surrounding River Catchment in an effort to resolve the outstanding localised flooding issues in the area. A Steering Group which comprises representatives of KCC, OPW and the consultants, was set up to advance the project.

KCC and their consultants submitted a Draft Options Report /Feasibility Study to OPW outlining possible flood relief measures for the Lower Morrell River Catchment. Following consideration of the draft report by the OPW's Design Section, it was agreed by the Steering Group that the consultants would carry out a more detailed review of the proposed scheme with further analysis of the various options considered to assess the benefits of the current works proposals as they have evolved. The review will also investigate if there are additional or alternative and more cost effective measures that can be put in place to alleviate flooding in the area. Any changes identified by the review process will need to be incorporated into the Cost Benefit Analysis and Environmental Impact Statement before the scheme can be advanced.

I am advised that the consultants have completed the review process and I understand that KCC will be submitting a revised Feasibility Study to the OPW for consideration shortly. Once the Feasibility Report has been finalised, and provided the scheme is still economically and environmentally viable, KCC and the OPW will decide on how best to advance the proposed works. The OPW has included provision for the cost of the proposed works in its financial profiles in the period up to 2018.

Coastal Protection

Ceisteanna (104)

Dara Calleary

Ceist:

104. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform his plans in relation to coastal protection; if he is in receipt of applications from Mayo County Council to assist with coastal protection; and if he will make a statement on the matter. [32513/15]

Amharc ar fhreagra

Freagraí scríofa

The primary objective of Government policy on coastal protection is to ensure that in areas identified as being at greatest risk of damage or loss to economic assets through coastal erosion or flooding, appropriate and sustainable measures are identified by Local Authorities to protect those assets and, where such measures are economically justified on cost benefit grounds and compatible with all required environmental and other statutory requirements, they are implemented subject to the availability of resources.

The Irish Coastal Protection Strategy Study (ICPSS) has surveyed and assessed the coastal erosion risk along the entire national coastline and this information is available to all Local Authorities to enable them to develop appropriate plans and strategies for the sustainable management of the coastline in their counties including the identification, prioritisation and, subject to the availability of resources, the implementation of coastal protection works both of a structural and non-structural nature.

Following the winter storms of December 2013 and January 2014 the Government allocated funding for coastal storm damage repair to all affected coastal counties. Funding of €4.205 million was allocated to Mayo County Council via the Office of Public Works as a once-off measure to reinstate built public coastal defence infrastructure to its pre-storm condition. The Council submitted a programme of works to the OPW of prioritised projects related to this allocation. It is a matter for the Council to progress the works. To date, the Council has drawn down €2.590 million of the funding allocation.

The Office of Public Works operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial are published on the OPW website, www.opw.ie. It is not available for repair of damaged infrastructure or for maintenance of existing flood defence or coastal protection assets. It is open to the Council to submit a funding application under the Scheme. Any application received will be considered in accordance with the scheme eligibility criteria and having regard to the overall availability of resources for flood risk management.

Departmental Staff Remuneration

Ceisteanna (105)

Robert Troy

Ceist:

105. Deputy Robert Troy asked the Minister for Public Expenditure and Reform the amount of bonus remuneration paid to staff in his Department and in agencies under his aegis to date in 2015; the number of persons to whom these payments were made and their purpose; and if he will make a statement on the matter. [32541/15]

Amharc ar fhreagra

Freagraí scríofa

In response to the Deputy's question no bonus remuneration has been paid to staff in my Department or the bodies under my aegis during 2015.

Departmental Staff Remuneration

Ceisteanna (106)

Robert Troy

Ceist:

106. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation the amount of bonus remuneration paid to staff in his Department and in agencies under his aegis to date in 2015; the number of persons to whom these payments were made and their purpose; and if he will make a statement on the matter. [32539/15]

Amharc ar fhreagra

Freagraí scríofa

There have been no bonuses paid to staff of my Department or any of the agencies under its aegis in 2015.

Job Initiatives

Ceisteanna (107)

Brendan Smith

Ceist:

107. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation the progress to date in securing a replacement industry in view of the closure of Bose Limited in Carrickmacross, County Monaghan, and the consequential serious loss of employment; if he is aware of the need to have new job opportunities provided for the Carrickmacross and south Monaghan areas at the earliest possible date; and if he will make a statement on the matter. [32571/15]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will possibly be aware that following the announcement of the closure of the Bose factory, I established an inter-agency group under the chairmanship of Enterprise Ireland, also including IDA Ireland, the Director of Monaghan County Council, the Local Enterprise Office (LEO), the Cavan/Monaghan and Louth/Meath Educational Training Boards (ETB), and Department of Social Protection.

The initial action of the group was to co-ordinate the response from the State in terms of awareness of entitlements and opportunities for the affected staff. This was handled in the main by Department of Social Protection in terms of benefits and the Educational Training Boards/ Local Enterprise Offices in terms of courses and support for start-up businesses. IDA Ireland, in conjunction with Bose HR, developed a demographic and skills profile of the current staff at the Bose facility. This profile will be central to IDA Ireland’s marketing of the location.

My focus, as Minister for Jobs, Enterprise and Innovation, has been on two principal issues: the first is bringing negotiations on specific job-creation projects to a successful conclusion and, secondly, marketing the Bose facility to other potential investors.

In relation to the first issue, I have announced two job-creation projects for Cavan/Monaghan in recent months, namely:

- The announcement by Combilift that it will invest €50 million in its facility in Monaghan town, supported my Department through Enterprise Ireland, resulting in the eventual creation of 200 permanent jobs as well as 200 construction jobs; and

- The announcement by Lakelands Dairies that it will invest €36 million in its facility in Bailieborough, also supported by my Department through Enterprise Ireland, resulting in the creation of 81 permanent jobs as well as 180 construction jobs.

In relation to the second issue, finding a replacement industry for Carrickmacross remains a very high priority. I have been in regular contact with IDA Ireland to ensure that everything possible is being done to market the facility abroad through IDA’s network of overseas offices. The premises are privately owned and leased by Bose. Both the building itself and the skilled workforce already there are strong selling points.

I have also ensured that Enterprise Ireland is likewise marketing the facility to its client base. It is worth noting that indigenous Irish companies in Co. Monaghan supported by my Department through Enterprise Ireland have performed very well in recent years with the creation of 650 jobs in the period from 2011 to 2014. For each job created in an Enterprise Ireland-supported company, an additional job is created elsewhere in the economy through supply companies and support services.

Representatives of IDA Ireland and Enterprise Ireland met with Monaghan County Council delegation on 23 September and had an in-depth discussion regarding the Bose facility. There will be follow up discussions in January 2016. IDA Ireland and Enterprise Ireland continue to work closely with the local authority in relation to this matter.

I have committed to developing an Action Plan for Jobs (APJ) for every region. An Action Plan for Jobs for the Border region is in preparation at present. The Border APJ will seek to maximise the strengths and assets of the region to support enterprise growth and job creation and to build on the progress that has already been made.

Agriculture Schemes

Ceisteanna (108)

Michael Healy-Rae

Ceist:

108. Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine his plans to introduce a calf weaning scheme for sucklers; and if he will make a statement on the matter. [32497/15]

Amharc ar fhreagra

Freagraí scríofa

The Suckler Cow Welfare Scheme was set up in 2008 to promote the highest standards of welfare and the quality of the dedicated beef suckler herd. The measures in this Scheme were designed to enhance animal welfare and husbandry standards as well as improve genetics through on-farm recording and evaluation of animal performance. Over 50% of Irish cattle are derived from the beef suckler herds, which combine the high yielding continental breeds with traditional breeds to adapt to Ireland’s predominately grass-grazed production systems.

This Scheme has since been superseded by the Beef Data and Genomics Programme (BDGP). The BDGP represents a €52 million investment in suckler farming this year and over €300 million over the next 6 years under Ireland’s Rural Development Plan (RDP). The scheme aims to improve the genetic merit of Irish beef cattle, which will in turn lead to increased returns for beef producers and improve the environmental sustainability of the beef herd. The scheme also aims to reverse the decline in the maternal index seen in recent years in the Irish beef herd.

It will also confirm Ireland’s position as a global leader in the application of genomics technology and cement our reputation as one of the most important and renowned export-focused beef producing nations in the world.

The importance of this sector of the agrifood industry cannot be understated. As the Deputy is aware, Ireland exports 90% of the beef it produces and suckler farming is one of the most important indigenous industries. Food and drink exports are at the forefront of our economic recovery, and in 2014 beef to the value of €2.27 billion was exported from the state, making this one of our most important indigenous export industries.

Agriculture Scheme Appeals

Ceisteanna (109)

Éamon Ó Cuív

Ceist:

109. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine when a decision will be made about an appeal lodged with the agriculture appeals office by a person (details supplied) in County Galway; the reason for the delay in deciding this appeal; and if he will make a statement on the matter. [32523/15]

Amharc ar fhreagra

Freagraí scríofa

The Agriculture Appeals Office has confirmed that an appeal has been received from the person named. The file and a statement on the appeal have been received from the Department of Agriculture, Food and the Marine and the appeal has been assigned to an Appeals Officer. As an oral hearing has been requested in this case, the Appeals Office will be in direct contact with the person named regarding the scheduling of this hearing shortly.

Departmental Staff Remuneration

Ceisteanna (110)

Robert Troy

Ceist:

110. Deputy Robert Troy asked the Minister for Agriculture, Food and the Marine the amount of bonus remuneration paid to staff in his Department and in agencies under his aegis to date in 2015; the number of persons to whom these payments were made and their purpose; and if he will make a statement on the matter. [32529/15]

Amharc ar fhreagra

Freagraí scríofa

No bonus payments were made to staff in my Department to date in 2015. The parallel information in respect of State Bodies under the aegis of my Department is a matter for the bodies themselves.

Barr
Roinn