Written Answers Nos. 59-76
59. Deputy Pearse Doherty asked the Minister for Finance if he has carried out an impact assessment of the strategic banking corporation on the cost of business lending; and if he will make a statement on the matter. [35618/15]
Amharc ar fhreagraThe Strategic Banking Corporation of Ireland (SBCI) was incorporated in September 2014 and its goal is to ensure access to flexible and lower cost funding for Irish SMEs. The SBCI launched its first product programme on the 19th February 2015, and lending to SMEs commenced on the 9th 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, and thereby increase competition for SME lending. 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.
Up to 30 June 2015, the SBCI had provided almost €45 million worth of discounted interest rate loans to 1,626 Irish SMEs. The SBCI's on lending partners commit under the terms of their facility agreements to pass on the financial advantage arising from the discounted funding provided by the SBCI to their SME clients. This is done either by way of a simple discount to the interest rate on each loan, the level of which is determined on a regular basis as funding is drawn down. This serves as a minimum discount. Alternatively, the financial advantage is delivered on a portfolio basis through a single price for SBCI loans, which delivers a varying discount but delivers the largest discount to the smallest borrowers. The SBCI operates detailed monitoring processes to ensure that the full financial advantage is passed on to SMEs. The SBCI places no maximum on the discount to be passed on and On-Lending institutions are free to discount further to them.
As the SBCI is operational for less than 7 months, and significant plans for further lending activities are in place, a formal assessment of the impact of SBCI on the cost of business lending has not been completed to date.
60. Deputy Robert Troy asked the Minister for Finance if he will ensure the sheriff operating under the Revenue Commissioners does not contact or make claim to any possession of persons (details supplied) in County Longford. [35627/15]
Amharc ar fhreagraI am advised by Revenue that Sheriffs are officers of the Court, holding office under Section 12 of the Court Officers Act 1945.
Their debt collection activities are generally covered by the 1926 Enforcement of Court Orders Act and they are governed by the general law which applies to the collection of civil debts. For this reason they are answerable before the Courts rather than directly to Revenue for any breaches of the civil debt collection law even though the Collector-General may refer tax debts to them for collection as provided for by Section 960L of the Taxes Consolidated Act 1997.
In regard to Revenue's debt collection activities I am assured that it only deploys enforcement action as a last resort where efforts to engage with the defaulting taxpayer have failed. In the specific case mentioned by the Deputy, Revenue has confirmed to me that it has made a number of efforts to engage with the person in question but he has declined to do so on each occasion. As a consequence Revenue was left with no alternative but to refer the case to the Sheriff for collection.
Revenue has also confirmed to me that the address used by the caseworker and subsequently by the Sheriff was provided (to Revenue) by the person in question. If this is no longer the address he wishes to use in regard to his tax affairs then the onus is on him to inform Revenue of his new address.
I understand that the Sheriffs operate a Code of Practice, which sets out how they will engage with taxpayers in relation to their tax collection activities. The Code is designed to provide an opportunity to taxpayers to resolve disputes without the necessity to initiate Court proceedings. Where direct discussions between the Sheriff and the taxpayer fail to resolve an issue the Code provides that a 'Joint Standing Committee' (JSC), which includes a Revenue representative, a representative from the Sheriffs' Association and a representative from the Department of Justice and Law Reform, will review the complaint. Requesting an issue to be reviewed under the Code of Practice does not infringe on the rights of a person to subsequently take his/her complaint before the Courts.
I am advised that a copy of the Code of Practice is available from any Sheriff office or can be viewed on the Revenue website via the following link: Sheriff's Code of Practice.
61. Deputy Michelle Mulherin asked the Minister for Finance his plans to remove value added tax on heart defibrillators, in order that more of these important lifesaving components can be installed in areas where emergency response times are longer; and if he will make a statement on the matter. [35645/15]
Amharc ar fhreagraThe VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%. Parts or accessories and training are also liable to VAT at the standard rate.
There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of defibrillators. Under the VAT (Refund of Tax) (No.15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund.
EU VAT law, with which Irish VAT law must comply, is strict on the application of a zero rate of VAT to goods or services. Article 110 of the EU VAT Directive law provides that it is only possible to apply a zero rate to goods and services where a Member State applied a zero rate to a specific good or service, that is social in nature, and where it applied at a zero rate on and from 1 January 1991. Under existing VAT law, therefore, it would not be possible to apply the zero rate to the supply of defibrillators as they did not apply at a zero rate of VAT.
62. Deputy Patrick O'Donovan asked the Minister for Finance if he will address a matter (details supplied) regarding a rebate on the usage of diesel and petrol by disabled drivers; and if he will make a statement on the matter. [35669/15]
Amharc ar fhreagraFrom 1969 to 2014, the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provided for the repayment of excise duty on fuel used in the transport of vehicles used by beneficiaries of the Scheme. Following a judgement of the CJEU of April 2013 the repayment of excise element of the Scheme was found to be incompatible with the Energy Tax Directive. Following negotiations with the European Commission it was agreed that the repayment of excise duty should be discontinued as of 31 December 2014.
As I stated in March 2014, to ensure that no beneficiary of the Scheme lost out as a result of the Court's ruling, I decided to introduce a new fuel grant effective from 1 January 2015. This fuel grant will maintain the current practice of paying the sum a year in arrears, so that my Department shall make the first payments of the fuel grant from 1 January 2016.
The Fuel Grant will be paid at the same rate as the rates for repayment of excise duty on fuel. Accordingly, the rate for petrol will remain at €0.59 per litre, the rate for diesel will remain at €0.48 per litre, and the rate for liquefied petroleum gas will remain at €0.10 per litre.
My officials and officials from the Office of the Revenue Commissioners have been preparing the necessary administrative and legislative measures to ensure the fuel grant is paid from 1 January 2016.
With the assistance of the Revenue Commissioners, a number of improvements have been made to the administration of the Scheme. Beneficiaries will now be able to apply for the fuel grant online on the Revenue website through the 'myAccount' feature. Revenue will process the applications for my Department, and my Department shall make the payment directly to the beneficiaries bank account.
My Department will shortly be writing to beneficiaries of the Scheme informing them of the changes to the fuel grant, and informing them that they can log-on to the 'myAccount' feature of the Revenue website from 1 January 2016 and claim the grant. Detailed information on the new fuel grant and how to apply for it will shortly be uploaded on the websites of my Department and of the Revenue Commissioners.
63. Deputy Olivia Mitchell asked the Minister for Finance the cost to the Exchequer of the tuition fees tax relief scheme, by approved college; by approved course; and if he will make a statement on the matter. [35679/15]
Amharc ar fhreagra64. Deputy Olivia Mitchell asked the Minister for Finance the cost to the Exchequer of increasing the upper cap on tuition fees to €8,000, €9,000, €10,000 and €15,000; and if he will make a statement on the matter. [35680/15]
Amharc ar fhreagra65. Deputy Olivia Mitchell asked the Minister for Finance the cost to the Exchequer of increasing the upper cap on tuition fees to €8,000, €9,000, €10,000 and €15,000, for part-time approved courses only; and if he will make a statement on the matter. [35681/15]
Amharc ar fhreagraI propose to take Questions Nos. 63 to 65, inclusive, together.
I am informed by the Revenue Commissioners that based on 2013 returns, the latest year for which data is available, the estimated cost of the scheme was €12.5 million. It is not possible to provide the details requested by approved college and approved course as that material is not collated.
I am also informed by the Revenue Commissioners that the estimated potential cost in increasing the cap on tuition fees to €8,000; €9,000; €10,000 and €15,000 are estimated to be €0.3 million; €0.5 million; €0.7 million and €1 million respectively. This estimate assumes no change in either the level of claims or the eligibility of courses. It is also assumed that the additional relief could fully be utilised. Changes to the level of the cap are primarily a matter for the Minister for Education and Skills, subject to my consent.
I am further informed that the Revenue Commissioners do not require claimants of this relief to identify whether courses are part-time or full-time and therefore there is no basis upon which to provide a costing for the measures proposed by the Deputy.
66. Deputy Willie Penrose asked the Minister for Finance the steps he will take to ensure that fees earned by personal insolvency practitioners are exempted from the provisions of value added tax, as their role is totally different from that of a liquidator or receiver; if he is aware that a decision of the first-tier value added tax tribunal in the United Kingdom found that individual voluntary arrangements should be exempt from value added tax and the arrangements system in the United Kingdom is closely aligned to the personal insolvency system, as operated here; and if he will make a statement on the matter. [35713/15]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that a Personal Insolvency Practitioner (PIP) will be involved in the Debt Settlement Arrangements and Personal Insolvency Arrangements as provided for in the Personal Insolvency Act 2012. The fees charged by a PIP in connection these services are liable to VAT at the standard rate, currently 23% (section 46 Value-Added Tax Consolidation Act 2010). The Revenue Commissioners do not share the Deputy's assessment of the role of a PIP since they consider a PIP to be acting in a capacity not entirely unlike liquidators, receivers or examiners whose services are also subject to VAT at the standard rate.
Having regard to the activities carried out by a PIP, Revenue has formed the opinion that the service provided by a PIP is not one that qualifies for exemption in accordance with the VAT Directive, Irish VAT Law, and relevant decisions of the European Court of Justice. It should be noted that exemptions for VAT are to be construed strictly and the activities of PIP practitioners do not fall within the exempted activities outlined under paragraph 6 of Schedule 1 of the Value-Added Tax Consolidation Act 2010.
While particular activities of Insolvency Practitioners operating under the UK Individual Voluntary Arrangement procedure were held by a UK First Tier VAT Tribunal to be exempt from VAT, there are distinct differences between the activities undertaken by UK practitioners and Irish PIPs and between the UK VAT legislation and the Irish VAT legislation.
I would point out that under a Personal Insolvency Arrangement, the Personal Insolvency Practitioner's fees are ultimately deducted from the dividend payments to the creditors under the arrangement rather than charged to the debtor. Therefore, it is the creditor who is bearing the ultimate cost of the fees, including VAT.
67. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 281 of 6 October 2015, if a person who is employed by a company, is a director of the company and owns the company, in full or in part, can potentially benefit from the foreign earnings deduction scheme, if the other conditions are met; and if he will make a statement on the matter. [35765/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that a person in the circumstances outlined by the Deputy could potentially benefit from the Foreign Earnings Deduction Scheme, as provided for in section 823A of the Taxes Consolidation Act 1997, provided all relevant conditions are met.
68. Deputy Marcella Corcoran Kennedy asked the Minister for Finance if Allied Irish Banks and Bank of Ireland, in order to meet their contractual obligations with the Strategic Banking Corporation of Ireland, must apply a minimum percentage reduction on business loan interest rates to small and medium enterprise applicants; and if he will make a statement on the matter. [35778/15]
Amharc ar fhreagraThe Strategic Banking Corporation of Ireland (SBCI) launched its first product programme on the 19th February 2015 and lending commenced on the 9th March 2015 through two On-Lending Partners, Bank of Ireland and Allied Irish Bank Plc.
An initial sum of €400m has been allocated between Bank of Ireland and AIB for lending to SMEs. The SBCI provides the same low cost pricing of funds to all its On-Lending Partners. While the On-Lending Partners may use different pricing approaches, the SBCI ensures that the financial advantage of the lower cost funding obtained by the On-Lenders is fully passed on through the SBCI loans provided to eligible SMEs.
The SBCI's on lending partners commit under the terms of their facility agreements to pass on the financial advantage arising from the discounted funding provided by the SBCI to their SME clients.
The SBCI operates detailed monitoring processes to ensure that the full financial advantage is passed on to SMEs. The SBCI places no maximum on the discount to be passed on to SMEs and On-Lending institutions are free to discount further the rates they offer to SMEs.
69. Deputy Seán Kyne asked the Minister for Finance if a voluntary community organisation is entitled to refund or exemption of vehicle registration tax under the Disabled Drivers and Disabled Passengers (Tax Concession) Regulations 1994; if there have been any recent policy changes in respect of this exemption; and the steps an organisation should take if problems are encountered with the Revenue Commissioners. [35786/15]
Amharc ar fhreagraRegulation 12 of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 (S.I. 353 of 1994) provides that a qualifying organisation may, under the conditions contained therein, receive remission or repayment of Vehicle Registration Tax (VRT) and VAT. Regulation (2)(1) of S.I. 353 of 1994 provides that a qualifying organisation means a philanthropic organisation which is not funded primarily by the State and which is chiefly engaged, in a voluntary capacity on a non-commercial basis, in the care and transport of severely and permanently disabled persons. Regulation 3 of S.I. 353 of 1994 provides for the criteria which shall determine whether a person is a severely and permanently disabled person under S.I. 353 of 1994.
The Regulations have not been amended in respect to the definition of qualifying organisation.
In the case that Revenue have refused a refund or exemption from VRT, an organisation may, under sections 145 and 146 of the Finance Act 2001, appeal a decision made by Revenue.
The first stage of the appeals process consists of the re-examination of the matter under appeal by a senior manager within Revenue who was not involved in the original decision. The appeal should be made in writing within 2 months of the initial decision, and should set out in detail the grounds or reasons for the appeal and should be accompanied by relevant supporting documentation. If the organisation is dissatisfied with the outcome of the first stage of the appeals process, it may apply, within 30 days of being notified of the first stage appeal decision, to have the case heard by the Appeal Commissioners.
In addition, Revenue's Compliant and Review Procedures provides an open and transparent mechanism for making a complaint and seeking a review of its handling of a case. It provides initially for a Local Review followed by either an Internal or External Review. Details of the procedure are set out in a Leaflet CS4 which is available on the Revenue website. Recourse to the Compliant and Review Procedures does not interfere with the statutory appeal process already outlined.
70. Deputy Pearse Doherty asked the Minister for Finance the number and percentage of taxpayers paying income tax at the lower rate. [35797/15]
Amharc ar fhreagra71. Deputy Pearse Doherty asked the Minister for Finance the number and percentage of taxpayers paying income tax at the higher rate. [35798/15]
Amharc ar fhreagra72. Deputy Pearse Doherty asked the Minister for Finance the number and percentage of taxpayers exempt from income tax. [35799/15]
Amharc ar fhreagraI propose to take Questions Nos. 70 to 72, inclusive, together.
I am informed by the Revenue Commissioners that a Pre-Budget 2016 Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf. This Ready Reckoner shows a wide range of information including the number and percentage of income earners who pay tax at the lower and higher income tax rates as well as those who are exempt.
Information for earlier years is available at: http://www.revenue.ie/en/about/statistics/income-earners-usc.pdf.
73. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the reason persons who work in a private school and are not being paid by the school or the Department are included under the Financial Emergency Measures in the Public Interest Act 2013; if this anomaly will be addressed in budget 2016; and if he will make a statement on the matter. [35274/15]
Amharc ar fhreagraThe Financial Emergency Measures in the Public Interest (No.2) Act 2009 provides for the reduction in the pay rates of all persons employed by public service bodies, as defined under the Act. Such reductions apply irrespective of whether a particular post is funded in whole or in part through non-Exchequer funds or income. The particular category of staff referred to in the question are, whether employed in a recognised public or a recognised private school, deemed to be public servants within the meaning of and for the purposes of the FEMPI (No 2) Act 2009. This position has been confirmed by a decision of the High Court.
There are currently no policy plans to exempt these staff from the relevant legislative provisions.
74. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if commercial rates are to be paid to local authorities by religious and community organisations that use units in business campuses. [35482/15]
Amharc ar fhreagraThe Valuation Act, 2001 as amended by the Valuation (Amendment) Act 2015, provides that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act. The Commissioner of Valuation is independent in the performance of his functions under the Acts and the making of valuations is his sole prerogative and I, as Minister, have no role in decisions in this regard.
The current position under the Valuation Acts regarding claims for exemption on charitable, community, cultural or religious grounds is that in order for a property occupied by an organisation to be exempt from rates under the terms of Schedule 4, it must satisfy certain criteria prescribed and articulated in a number of specific provisions in the Schedule. For example the building has to be used exclusively for the purpose of religious worship (paragraph 7) or exclusively as a community hall (paragraph 15), community hall being further defined in the Acts.
With regard to the particular property to which the Deputy refers, these premises were the subject of a revision of valuation in 2012 when the occupier applied to the Valuation Office for exemption on the grounds that it was a non-profit organisation and that the premises was a Community and Cultural Centre. The applicant did not at that time satisfy the criteria to qualify for exemption and did not appeal the Commissioner's decision to that effect. The time for appealing the decision on the 2012 revision has passed but the occupier can make a new revision application seeking exemption setting out the applicable grounds for exemption in Schedule 4 if he considers that the use of the premises meets the relevant conditions.
In general, if an occupier of property is dissatisfied with a decision not to exempt a property under Schedule 4 of the Valuation Act 2001 as amended, there are extensive appeal avenues, provided for in the Valuation Acts. Firstly, before a determination is made, there is a right to make representations in relation to a proposed valuation to the Revision Manager in the Valuation Office. Following consideration of the representations and determination of the valuation, there is a right of appeal to the Valuation Tribunal, an independent body set up for such purposes and, finally, there is a right of appeal to the Higher Courts on a point of law.
75. Deputy Billy Kelleher asked the Minister for Public Expenditure and Reform if he will provide in tabular form the plans in place for the disposal of every Dublin Garda Síochána station that has been closed since 2011; and if he will make a statement on the matter. [35569/15]
Amharc ar fhreagraThe following six Garda stations have closed since 2011 as part of the rationalisation programme of An Garda Síochána announced in the 2012 and 2013 policing plans.
|
Garda Station |
Future plans |
|
Rush |
The former regard station at Rush, Co. Dublin has been licensed to the Rush Musical Society for the use of the Musical Society and Rush Tidy Towns. |
|
Harcourt terrace |
The Commissioners of Public Works have agreed to transfer the former Garda station together with the former Film Censor's office at Harcourt Terrace to the Department of Education and Skills for the purposes of building a new primary school. The property is currently licensed to five Art Groups. |
|
Dalkey |
The property has been retained for strategic purposes and the OPW has entered into a pilot guardianship arrangement while the future use of the property is under consideration. |
|
Whitehall |
The former Garda station at Whitehall is currently being redeveloped for use by the State Pathologist and the Dublin City Coroner. |
|
Stepaside |
The property has been retained for strategic purposes and the OPW has entered into a pilot guardianship arrangement while the future use of the property is under consideration. |
|
Kill O' the Grange |
The property has been retained for strategic purposes and the OPW has entered into a pilot guardianship arrangement while the future use of the property is under consideration. |
76. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the position regarding the planned flood relief scheme in Cork city; an estimate of the timeline for its delivery; the level of funding that has been committed; and if he will make a statement on the matter. [35614/15]
Amharc ar fhreagraThe Office of Public Works (OPW) appointed consultants in April 2013 to further develop the proposals identified in the pilot Catchment Flood Risk Assessment and Management study for the Lower Lee in Cork City. Much work has been undertaken on the project since then on the outline design of the Scheme and with the development of the flood forecasting system which will facilitate decision-making on the discharge rate from the dams at Inniscarra and Carrigadrohid.
The main Lower Lee Scheme for the City is likely to be the largest flood relief scheme ever undertaken in the country and covers the area from Inniscarra Dam to downstream of the City. When the outline design has been completed and an Environmental Impact Statement has been prepared the OPW will formally exhibit the proposals over a four week period in the City which is expected to take place in the Spring of 2016. The detailed design will be commenced after the Exhibition. Once the detailed design is complete, the Scheme will be submitted to the Minister for Public Expenditure and Reform for Confirmation or approval as required by the Arterial Drainage Acts.
Subject to the Scheme being Confirmed the OPW will aim to appoint a civil works contractor and commence construction within a short period thereafter. Due to the likely scale of the proposed Scheme, it is possible that the Scheme will be undertaken on a phased basis under a number of contracts. The design consultants have commenced work on a Phasing Report which will assist a structured implementation of the Scheme. This will be a very significant scheme with commensurate costs and it is anticipated that the works will take at least 4-5 years to complete.
It was indicated by the OPW in the early stages of this project that should there be delays to the main City Scheme then every effort would be made to progress the Blackpool element of the project. Progress has been made in relation to the identification of a preferred scheme for Blackpool and this has now been separated from the main Scheme and has become a Scheme in its own right. It is intended to bring the preferred Scheme in Blackpool forward to public Exhibition before the end of November this year. Detailed design will then be undertaken as early as possible with a procurement process expected to be undertaken in the first half of 2016 which would coincide with the Confirmation process. The Confirmation process itself will require the Minister for Public Expenditure and Reform to have the Environmental Impact Statement independently assessed before it can be Confirmed. It is hoped to commence construction works in the second half of 2016.
The Government remains fully committed to the provision of a flood relief scheme for the people of Cork City and the OPW has made provision for the cost of implementing the scheme in its Multi Annual Budget Profiles.
