Written Replies Nos. 55-64
55. Deputy John McGuinness asked the Tánaiste and Minister for Social Protection the funding her Department has allocated to organisations not audited directly by the Comptroller and Auditor General; the names of these organisations; the funding allocated to each over the past five years; the process in place to ensure that value for money is achieved and that the funding allocated is audited; and if she will make a statement on the matter. [38676/15]
Amharc ar fhreagraIt is not possible to provide the information within the timeframe required. The information requested by the Deputy is being compiled by my officials and will be sent to the Deputy when it is finalised.
56. Deputy Marcella Corcoran Kennedy asked the Minister for Finance if Allied Irish Banks and Bank of Ireland, to meet their contractual obligations with the Strategic Banking Corporation of Ireland, are required to apply a minimum percentage (details supplied) reduction on interest rates; the rate of this minimum percentage reduction on business loan interest rates to SME applicants; if the banks are required to advertise the loan interest rates as having resulted from funding from the Strategic Banking Corporation of Ireland; and if he will make a statement on the matter. [38502/15]
Amharc ar fhreagraThe Strategic Banking Corporation of Ireland (SBCI) was created to ensure increased lending, at a lower cost, to Irish SME's by channelling lower cost financing from EIB and KfW though lending partners known as on-lenders.
All on-lending partners of the SBCI, including AIB and Bank of Ireland are required, under contract, to pass on to their borrowers the full extent of the financial advantage accruing as a result of the SBCI's discounted interest rate. They are to achieve this by charging each relevant borrower a reduced rate of interest compared to the on-lender's standard rate of interest for a comparable loan.
The on-lender may pass on the reduction either by offering a single discount on each individual loan or by offering a single discounted interest rate to all customers within a portfolio. The on-lender also has the discretion to supplement the SBCI discount with a further reduction, of its own, in the interest rate it charges. The percentage discount varies between on-lenders and from time to time in accordance with interest rate market movements; however, the on-lender is obliged at all times to pass on to the borrower the full discount.
In all marketing or promotional material for the lower-cost SBCI loans, on-lenders are required to confirm that the loans are supported by the SBCI and its funders. The on-lender is also obliged to maintain a dedicated webpage on its website to provide information on SBCI funded products, and the SBCI has confirmed that each on-lender is currently complying with this requirement.
The relevant webpages for AIB and Bank of Ireland are as follows:
http://business.aib.ie/products/finance-and-loans/sbci-loan
http://businessbanking.bankofireland.com/credit/business-loans/strategic-banking-corporation-of-ireland/.
57. Deputy Arthur Spring asked the Minister for Finance his plans to allow for discretion to be introduced regarding vehicle registration tax where a car purchased for a person with a disability must be resold within two years and the disabled person must upgrade to a more suitable and affordable second-hand vehicle to cater for the person's disability. [38510/15]
Amharc ar fhreagraRegulations 8(4), 8(5), 10(4), and 12(6) of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994) provide that drivers, passengers and organisations respectively shall undertake to use the vehicle purchased under the Regulations for a period of two years from the date of purchase.
Regulation 15 of the Regulations provides that where a driver, passenger or organisation does dispose of the vehicle before the period of two years has elapsed, they shall refund a portion of the tax repaid or remitted under Regulations 8, 10, and 12 to the Revenue Commissioners. The amount of the refund is calculated by reference to a formula contained in Regulation 15.
Regulation 15(6) provides that the Revenue Commissioners may, in exceptional cases, reduce the amount of the refund required under Regulation 15.
I am satisfied that these provisions strike the balance between the appropriate level of discretion and the requirement to ensure the Scheme provides value for money.
58. Deputy Finian McGrath asked the Minister for Finance if he will support a matter (details supplied) regarding inheritance tax; and if he will make a statement on the matter. [38600/15]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) applies to the beneficiary of a gift or inheritance rather than to the person making the gift or inheritance. While the rate of CAT is 33% each person has a number of life-time thresholds for gifts and inheritances which they can receive tax free. These are based on the relationship to the person who has made the gift or bequest. The 33% rate of CAT applies on assets received by a person above the relevant threshold.
Over the last number of years the CAT thresholds have been reduced a number of times, while the rate has been increased. These changes were necessary in order to maintain the yield from capital taxes in a period of falling asset prices so that such taxes would continue to make a contribution to our efforts to consolidate the public finances.
As part of Budget 2016 I raised the Group A threshold applying to gifts and inheritances from parents to their children from €225,000 to €280,000. This represents an increase of about 25%. I did this in recognition of the improving state of the national finances and of the concerns expressed to me by people making and receiving gifts and inheritances, particularly in a context of rising property prices.
In allocating limited resources for the Budget choices had to be made between different areas. As the economic recovery continues to take hold, I began last year to focus available resources on reducing the burden of taxation on earned income and take-home pay where high taxes impact on competitiveness, economic growth and job creation. That continued to be my main focus in this latest Budget. An important consideration in these matters is the view of the OECD, supported by our own economic research, that taxes on property and other fixed capital, such as CAT, are less harmful and distortionary to economic growth than taxes on work or consumption.
I have, however, indicated that I see the change to the Group A tax-free threshold in this year's Budget as the start of a process. Provided, among other factors, that our economic recovery continues, I will examine the scope for further improvements in the tax-free thresholds in the future.
59. Deputy Michael McGrath asked the Minister for Finance if he has made an estimate of the likely cost in terms of tax foregone of the exemption from capital gains tax for investors who purchased property before 31 December 2013 and hold it for seven years; and if he will make a statement on the matter. [38615/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that it is not possible at this time to estimate when such properties will be disposed of in the future or the amount of chargeable capital gain, if any, which may arise on such disposals. Accordingly, it is not possible to estimate the likely cost of the exemption.
60. Deputy Ruth Coppinger asked the Minister for Finance the percentage of staff in his Department capable of dealing with the public in the Irish language; if there are training programmes in place for staff to improve their level of working Irish; the provision there is for other minority languages; and if he will make a statement on the matter. [38624/15]
Amharc ar fhreagraThe Department is fully aware of its obligations under the Official Languages Act 2003. The Department offers courses in Irish and other EU languages to staff of the Department in order to assist in dealing with queries and also to improve our communication when engaging with our EU colleagues.
The Department has celebrated Seachtain na Gaeilge in 2014 and 2015 and funding is put in place for staff to attend language courses, which include Irish, French and Italian, through the Refund of Fees Scheme.
The Department conducts its main business through English and Irish. The Department publishes its main reports online in Irish, including Summary of Budget 2016 Taxation Measures - Policy Changes as part of Budget 2016.
A Language and Qualifications survey was carried out during 2014 with staff of the Department and the results indicated that 2% of staff are capable Irish speakers who are happy to deal with members of the public or other Bodies, as required, through Irish.
An earlier survey within the Department revealed that in 2013 a total of fifteen members of staff dealt with written correspondence in Irish and two staff dealt with telephone calls in Irish, totalling 17 staff or 5.3% of the total staffing numbers. While most dealt with only a few items (eleven staff dealt with three or fewer items), one member of staff dealt with more than nine instances of written correspondence during 2013. In addition, three items of Ministerial correspondence were received and answered in Irish during 2013.
61. Deputy John McGuinness asked the Minister for Finance the funding allocated by his Department to organisations not audited directly by the Comptroller and Auditor General; the names of these organisations; the funding allocated to each over the past five years; the process in place to ensure that value for money is achieved and that the funding allocated is audited; and if he will make a statement on the matter. [38670/15]
Amharc ar fhreagraIn answer to the Deputy's question, I am interpreting the term "organisation" to mean "Bodies under the aegis of my Department". Of the 18 Bodies under the aegis of my Department one, the Disabled Drivers Medical Board of Appeal, is in receipt of funding allocated by my Department that is audited indirectly by the Comptroller and Auditor General.
The Disabled Drivers Medical Board of Appeal is housed in the National Rehabilitation Hospital. Accordingly, an annual payment to the National Rehabilitation Hospital to cover the costs of operating the Board is made from the Vote of the Office of the Minister for Finance. €330,000 per annum was allocated for the funding of the Board between 2011 and 2015 inclusive.
The Medical Board of Appeal is not audited by the Comptroller & Auditor General. However, as part of the year ended 31 December 2013, the payment to the National Rehabilitation Hospital made by the Department was audited by the Office of the Comptroller and Auditor General and following the Department's response there were no follow-up queries.
The accounts of the National Rehabilitation Hospital are audited and published annually. My Department is currently working to put in place a Service Level Agreement to place the relationship with the National Rehabilitation Hospital on a firmer footing, and this Agreement will ensure that the Medical Board of Appeal continues to meet its targets and provides value for money.
62. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform the percentage of staff in his Department capable of dealing with the public in the Irish language; if there are training programmes in place for staff to improve their level of working Irish; the provision there is for other minority languages; and if he will make a statement on the matter. [38629/15]
Amharc ar fhreagraIn response to the Deputy's question I can confirm that 0.8% of staff in my Department have volunteered to deal with members of the public through Irish. While the percentage may appear low, the Deputy will be aware that my Department, given the nature of its functions and work does not have a high level of direct contact with individual members of the general public.
Gaelchultúr Teoranta is the service provider for Irish language training programmes in the Civil Service. My Department's training programmes, including language training, are aligned with the business needs of the Department and are provided for accordingly.
63. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the funding allocated by his Department to organisations not audited directly by the Comptroller and Auditor General; the names of these organisations; the funding allocated to each over the past five years; the process in place to ensure that value for money is achieved and that the funding allocated is audited; and if he will make a statement on the matter. [38675/15]
Amharc ar fhreagraBenefacts is a new social enterprise that will enhance the visibility, accountability and transparency of the not-for-profit sector. This initiative is co-funded by the Department of Public Expenditure and Reform, Atlantic Philanthropies and The American Ireland Funds.
Benefacts will pilot a service that will provide a single repository of regulatory data on the entire not-for-profit sector. This sector is estimated to encompass 20,000 not-for-profit entities and receive €4.4 billion annually in Government funding.
|
Organisation |
Funding Year |
Amount of Funding Allocated |
|
Benefacts |
2015 |
€350,000 |
The Department's funding of this initiative will:
- Deliver a single (cross-departmental) view of every not-for-profit entity in Ireland.
- Facilitate better decision-making in the Government's funding of the sector.
- Provide services that could be used to reduce the regulatory burden on both Government and the not-for-profit sector.
- Re-build donor confidence and provide for increased investment in the sector.
- Deliver public service reform by trialing and delivering new ways of working.
- Promote open data and transparency by developing a free, publicly available website, www.benefacts.ie
The Department's management of grant funding to Benefacts is supported by a robust Funding Agreement that ensures that value for money is achieved and that the funding allocated is audited. This Funding Agreement provides that no grant shall be paid unless and until the Department is satisfied that such payment will be used for proper expenditure in the delivery of the Project.
A Project Advisory Group, which is comprised of senior officials from the largest grant-making Department and Agencies and chaired by the Department of Public Expenditure and Reform, has responsibility for ensuring that the deliverables of the Project meet the requirements of all end users, in a manner that ensures value for money is achieved.
The Department of Public Expenditure and Reform regularly reviews the Company's accounts and records that relate to the application of Grant monies, including expenditure profiles, cash profiles and regular management accounts. Benefacts is also required to submit its audited accounts to the Department without delay after the end of the financial year.
The Company is obliged to keep all invoices, receipts, and accounts and any other relevant documents relating to the expenditure of all grants received by it for a period of at least six years following receipt of same.
Benefacts will also make its financial records available for inspection to the Comptroller and Auditor General, as and when required, in accordance with the provisions of Circular: 13/2014 Management of and Accountability for Grants from Exchequer Funds.
The table following contains figures for EU Structural Funds.
|
Year |
Regional Assemblies National Managing Authorities* |
International Managing Authorities** |
Total Allocation |
|
2011 |
€965,486 |
€75,931 |
€1,041,417 |
|
2012 |
€900,217 |
€66,166 |
€966,383 |
|
2013 |
€976,476 |
€60,778 |
€1,037,254 |
|
2014 |
€1,016,812 |
€14,685 |
€1,031,497 |
|
2015 |
€1,470,718 |
€177,955 |
€1,648,673 |
*Regional Assemblies are National Managing Authorities under the aegis of DECLG and are subject to Local Government Audit and EU Audit
**International Managing Authorities are subject to EU Audit.
64. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which negotiations in respect of the Transatlantic Trade and Investment Partnership are continuing; if all outstanding or contentious issues have been identified and isolated, with a view to resolution; and if he will make a statement on the matter. [38575/15]
Amharc ar fhreagraI am pleased to report that negotiations between the EU and the US on trade and investment have accelerated and solid progress has been made.
The 11th round in these negotiations took place in Miami from 19th – 23rd October, 2015.
During this round negotiators discussed all three pillars of the proposed agreement, namely, market access for EU and US companies, regulatory cooperation and trade rules.
There was substantial progress on market access for EU and US companies in all three areas including tariffs, services and public procurement. A second tariff offer was exchanged and both sides have now arrived at a level of proposal in terms of tariff line coverage which will assist and benefit further negotiations. There was also discussion in relation to public procurement and it is envisaged that there will be an exchange of market access proposals on public procurement by February 2016.
The negotiations also provided an opportunity to clarify some of the main principles of regulatory cooperation. These included the fact that any cooperation is possible only if the level of protection for consumers stays the same or improves and any form of regulatory cooperation will not change or affect the EU regulatory and democratic process.
In line with the new EU Trade Strategy, the EU also tabled its proposal for sustainable development, including on labour and the environment, and also discussed rules for trade facilitation, competition, energy and raw materials and others. Negotiators on both sides remain positive and expect further substantial progress by early next year.
The EU has yet to exchange views on Investment Protection. While offers reaching 97% of all tariff lines have been exchanged, the most sensitive issues including some agriculture product lines have yet to be discussed.
At the Council of Trade Ministers scheduled to meet on 27 November in Brussels, I will have the opportunity to discuss progress on these negotiations with Commissioner Malmström and with EU Council colleagues.
