Written Answers Nos. 60 - 72
60. Deputy Michael McGrath asked the Minister for Finance if he has examined the operation of the relevant contracts tax system in the construction industry; the number of persons in the industry working under this system; if he is satisfied that taxation law is being fully complied with in respect of the system; and if he will make a statement on the matter. [40987/15]
Amharc ar fhreagraThe operation of Relevant Contracts Tax, and the electronic Relevant Contracts Tax (eRCT) system that underpins it, is a matter in the first instance, for the Revenue Commissioners.
The Deputy will be aware that -
(a) the eRCT system of tax deduction at source applies to payments made by principal contractors to sub-contractors; and
(b) the PAYE system of tax deduction at source applies to payments made by employers to their employees.
As I outlined in a PQ (Question No. 39514 on 10 November 2015) response last week and based on information provided to me by Revenue:-
(i) there are 99,741 sub-contractors currently registered under the eRCT system of which 23,202 are sole traders with the balance being companies or partnerships; and
(ii) based on employer end of year PAYE returns for the 2014, there were 75,386 individuals employed in construction related businesses.
More up-to-date information is not currently available. However, the CSO's recently published Quarterly National Household Survey data for Quarter 3 2015 shows employment in the sector increasing by over 13% on Quarter 3 2014.
I am advised by Revenue that monitoring of the construction sector for abuses of the tax and duty systems forms part of its on-going compliance programmes to which they commit significant resources. In the course of this year, Revenue has strengthened its focus on the sector and its national programme of compliance interventions in relation to tax and the construction sector in general. Revenue's focus includes:-
Proper operation of the eRCT system including ensuring that principal contractors are fully reporting payments through the eRCT system and ensuring that principal contractors are reporting "Unknown" sub-contractors to Revenue;
Reconciling reported activity under the Home Renovation Incentive (HRI) with VAT returns filed;
Reconciling reported activity under the eRCT system, PAYE/PRSI returns, VAT returns and examining profit margins;
Proper operation of the VAT reverse charge;
Proper operation of PAYE/PRSI obligations;
Ensuring that employees are not misclassified as sub-contractors;
Ensuring that obligations of non-principals/sub-contractors are being fully met.
Revenue has also increased the number of unannounced visits to construction sites.
If the Deputy has specific information relating to individuals or business groups in any sector who are involved in tax evasion, he should provide that information to Revenue. Revenue has provided a tailored template on their website which facilitates reporting of tax evasion and the relevant links are being provided for the Deputy's information.
http://www.revenue.ie/en/business/shadow-economy/index.html
https://www.ros.ie/online-enquiry-web/goodCitizen
The Deputy will also be aware that during the Committee Stage debate on Finance Bill 2015 earlier this week, I announced that a public consultation would shortly be held on a range of issues relating to employment practices and trends. Such a process will allow all interested parties to feed into a broad ranging consideration of the issues involved.
61. Deputy Pearse Doherty asked the Minister for Finance the action he is taking in response to the recent report from the Financial Stability Board in Switzerland which described how improved monitoring of shadow banking here will require increased regulatory oversight and co-ordination across jurisdictions; and if he will make a statement on the matter. [40990/15]
Amharc ar fhreagraI take it that the Deputy is referring to the Financial Stability Board's (FSB) Global Shadow Banking Monitoring Report which was published on 12 November, 2015. This report presents the results of the fifth annual monitoring exercise using data as of end 2014 for 26 jurisdictions - including Ireland for the first time - as a specific, detailed case study. I welcome the involvement of the Central Bank in this exercise and in their engagement with the FSB.
It is important to highlight that of the €3,281 billion identified in the report as being outside the Irish banking system, some €2,783 billion (85%) is subject to other forms of financial regulation and/or reporting for the funds, insurance, securitisation and pension sectors. The report also indicates that the majority of the assets and liabilities of the entities involved in these activities are located outside Ireland. However, the exercise highlights the need for international co-operation in terms of monitoring, data sharing and awareness to prevent the build up of global systemic risks. My Department continues to enhance the international financial services regulatory agenda working with the EU and other jurisdictions and international bodies.
I note that the case study on Ireland highlights the success of Ireland's International Financial Services sector which supports some 35,000 jobs across Ireland. The success of the sector has been driven by global specialisation in key fields such as funds management and administration, insurance and reinsurance and brokerage, efficient listing processes and the availability of highly qualified staff and professional support services.
The Central Bank remains committed to seeking and communicating further detail on the nature of the International Financial Service activities listed or domiciled in Ireland and is engaged in improving data collection, levels of awareness and engagement with international regulators and bodies.
62. Deputy Terence Flanagan asked the Minister for Finance if he will address a matter (details supplied) regarding the pension levy; and if he will make a statement on the matter. [41010/15]
Amharc ar fhreagraThe Deputy is referring to the stamp duty levies applying to the assets of funded pension arrangements introduced in 2011 to pay for the Jobs Initiative, the chargeable persons for which are the trustees of pension schemes and others responsible for the management of pension fund assets.
The original 0.6% stamp duty levy on pension fund assets ended last year. The additional levy of 0.15% which I introduced for 2014 and 2015, mainly to help continue to fund Jobs Initiative, will also end after this year, as I again confirmed on Budget day last month.
The position is that the equivalent value of all of the money raised from the stamp duty levy has been used to fund the wide range of measures introduced in the Jobs Initiative to protect existing jobs and to help create new jobs and the Initiative has been a success in this regard. The measures introduced include expenditure measures such as the Jobbridge and Springboard schemes, as well as a number of tax and PRSI incentives such as the reduction in the VAT rate from 13.5% to 9% for the tourism and hospitality sectors and the halving of the lower employer PRSI rate.
While the pension fund levies have ceased and will be ceased as I have already outlined, I have no plans to repay the pension fund levy collected as suggested in the details supplied. The value of the funds raised by way of the levy have been used to protect and create jobs and this has helped to create the improving financial and economic position of the State. Taxpayers to whom the impact of the levy may have been passed on by the chargeable persons responsible for the payment of the levy (the pension scheme trustees etc) will benefit from the changes which I began in Budget 2015 and have continued in Budget 2016 to reduce the tax burden on low and middle income earners.
63. Deputy Pearse Doherty asked the Minister for Finance the number of properties sold by AIB, Bank of Ireland and Permanent TSB through both the approved housing body mortgage-to-rent scheme and the local authority mortgage-to-rent scheme in tabular form; and if he will make a statement on the matter. [41041/15]
Amharc ar fhreagraThe following is a breakdown of properties sold by each of the banks through the Approved Housing Body Mortgage to Rent Scheme:
|
Bank |
Housing Agency MTR Scheme |
|
AIB |
5 |
|
PTSB |
10 |
Bank of Ireland have indicated that their Annual Report includes all required declarations to the market in relation to its Residential Irish Mortgage Portfolios. The most recent full year for which an Annual Report is available is 2014 at https://www.bankofireland.com/fs/doc/wysiwyg/boi-annual-report-2014.pdf
There is a separate Mortgage-To-Rent Scheme in operation for borrowers in arrears with a local authority provided mortgage, however this applies only to properties owned by local authorities and therefore does not include any properties being sold by the banks.
64. Deputy Michael McGrath asked the Minister for Finance the role he has had in the arrangements for provision of pensions to former employees of Waterford Crystal; when all lump sums and regular payments will be made; and if he will make a statement on the matter. [41057/15]
Amharc ar fhreagraThe European Court of Justice (ECJ) delivered a judgement on 25 April 2013 arising from an investigation of complaints under Directive 2008/94/EC on the protection of employees in the event of the insolvency of their employer and the resultant contractual obligations that derive under the transposition of that Directive by the Irish Government.
The ECJ found in favour of the plaintiffs who were 10 former Waterford Crystal Workers. It held that the Irish Government had failed to transpose the Directive in such a manner as to protect the rights of the plaintiffs to old-age benefits under a supplementary pension scheme established by their employer.
Following a mediation process, the Government accepted recommendations to resolve the matter. The recommendations included payment of a cash lump sum by way of compensation to each deferred member of the Waterford Crystal factory and staff schemes amounting to €1,200 per year of service in the pension scheme. A total of 1,774 recipients were identified for payment.
The underpinning statutory arrangements are in Section 4 of the Social Welfare and Pensions (No. 2) Act 2014 which inserted Section 48B to the Pensions Act 1990. This provided for the Minister for Finance, at the request of the Minister for Social Protection, following consultation with the Minister for Public Expenditure and Reform, to pay moneys from the Central Fund to an approved person for the purpose of the discharge by the approved person of the liabilities of an eligible pension scheme. The Minister for Finance, following consultation with the Minister for Public Expenditure and Reform, authorised the Minister for Social Protection to be the approved person.
The Department of Social Protection, as the approved person, has advised that amounts up to €45 million in total are required to be paid from the Central Fund for it to pay the compensation component of the mediation agreement approved by the Government. Thus far the Department of Social Protection has made 1575 payments amounting to €42.13 million and this amount has been recouped by the Department of Finance from the Central Fund. The remaining balance of payments is being worked on by the Department of Social Protection. That Department is also considering options regarding a payment solution for the ongoing regular pension payments.
65. Deputy Michael McGrath asked the Minister for Finance the status of plans to provide basic bank accounts for low income households; and if he will make a statement on the matter. [41061/15]
Amharc ar fhreagraMy Department is currently transposing the Payment Accounts Directive which requires that all consumers legally resident in the EU must have access to a payment account with basic features, regardless of their financial circumstances. The Directive also allows Member States to make provision to promote financial inclusion of unbanked, vulnerable consumers. The Directive must be transposed by September 2016.
My Department is carefully considering how to progress this issue, in light of the requirement in the Payment Accounts Directive that payment accounts with basic features are offered by a sufficient number of credit institutions, which includes the main banks, to guarantee access for all consumers. My Department is working closely on the matter with other relevant Government departments.
66. Deputy Michael McGrath asked the Minister for Finance when the central credit register will be fully operational; the steps that have been taken and the costs incurred to date; the reason for the delay; and if he will make a statement on the matter. [41062/15]
Amharc ar fhreagraI am informed by the Central Bank of Ireland that it plans that a Central Credit Register (CCR) solution will be in place by mid-2016. To that end, the Central Bank has:
- signed contracts with CRIF Ireland Limited in February 2015 to establish and operate the CCR on its behalf;
- progressed a design stage to specify the detailed data requirements and conducted a data survey with representative lenders;
- published a Consultation Paper in April 2015 seeking views on key issues, in response to which 19 submissions were received in advance of the closing date of 12 June (in relation to this, the Central Bank will publish feedback in the coming months), and
- commenced a privacy impact assessment to ensure that the appropriate controls will be in place to safeguard personal data across the end to end processes.
Work continues on finalising the CCR solution design and on drafting the necessary regulations under the Credit Reporting Act 2013 to establish the legal basis for lenders to submit data to the register. The take on of data will be implemented on a phased basis, with Phase 1 focusing on lending to consumers and Phase 2 focusing on lending to businesses. It is expected that data submissions by lenders will commence in late 2016 but the final deadline will be influenced by the scale of the technical and operational changes to be implemented by lenders. Enquiries by lenders against the CCR data are likely to commence in early 2017 when data quality has been assured. Borrowers will be entitled to access their own credit reports at that time also. The provision of the CCR is a significant task and the commencement of full operations will depend on data submissions from over 500 lenders.
The Central Bank has also advised me that, since the commencement of the project in late 2013, the costs it has incurred to end October 2015 have amounted to €1,543,000. However, it should be noted that the costs associated with the CCR will, in due course, be recovered from CCR users.
67. Deputy Michael McGrath asked the Minister for Finance the value of the State's holding in alcohol, tobacco, aerospace and defence industry stocks; the value of such stocks disposed of in 2014 and in 2015 to date, by shares sold in the tobacco sector, the alcohol sector and the aerospace sector; his views on the reduction of the State's holdings in such stocks; and if he will make a statement on the matter. [41064/15]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) has advised that it publishes its holdings annually and, based on the 2014 National Treasury Management Agency (NTMA) Annual Report, estimates an exposure of approximately €45m to the alcohol, tobacco and aerospace & defence industries as at 31 December 2014. The majority of these equity investments held by the ISIF are passively managed against an index (or basket) of shares. This approach is low cost and standard market practice and it is implemented by holding every constituent included in the selected index. The ISIF does not disclose the value of individual security transactions.
The NTMA Annual Report for year ending 31 December 2015 will be published in mid-2016.
The ISIF has a statutory mandate to invest on a commercial basis to support economic activity and employment in Ireland and is engaged in a multi-year portfolio management strategy to sell its investments outside Ireland over time to fund Irish investment commitments as they arise.
The ISIF currently operates a Responsible Investment policy and is a committed signatory to the UN Principles for Responsible Investment, which focus on engagement and active ownership rather than exclusion. Any exclusions from the Fund are mandated by legislation and in this regard the Cluster Munitions and Anti-Personnel Mines Act 2008 is the only relevant legislation. The ISIF has excluded 14 companies from the Fund's investment universe to comply with this legislation.
68. Deputy Michael McGrath asked the Minister for Finance the amount the Central Bank of Ireland has spent on training for its staff in 2014 and 2015; the details of each course provided including the name, the cost and the number of participating staff; and if he will make a statement on the matter. [41065/15]
Amharc ar fhreagraEach year the Central Bank reports on its training expenditure in its Annual Report (see note 8). The total spend in 2014 was €2,299,816, with 1,180 staff members availing of training. The amount spent on training to 30 July 2015 has been €1,102,484, with 1,092 participating staff members.
The Central Bank's training takes a variety of formats: in-house, external, through the Bank's own online training portal, third level, post-graduate and approved professional qualifications. The courses undertaken include accountancy, legal, risk management, finance and human resources. Training ranges from half-days on relevant topics to post-graduate qualifications. In recent years the Central Bank has shifted to providing more training by way of its online portal, where possible.
The Central Bank places a strong ongoing focus on, and investment in, the capability of its staff, who are key to delivering on its mandate. The Bank's HR strategy therefore has a strong emphasis on staff development which is delivered through a targeted Learning and Development programme. This is influenced by:
- Emerging issues and trends in financial services;
- The need for continual development of staff knowledge and expertise; and
- The addition of relevant new qualifications and to ensure existing qualifications are up to date.
69. Deputy Catherine Murphy asked the Minister for Finance if he is aware of the Bara judgment of the Court of Justice of the European Union delivered last month (details supplied); if the information in any of the databases assembled and processed by his Department, or by the Revenue Commissioners, towards the administration of the local property tax scheme was gathered using personal data previously collected and held by the State towards a different purpose; if persons whose personal data was gathered in such manner have been notified of the transfer of their data to the administration of the local property tax scheme; if not, his views that all such databases are now illegal in view of the Bara judgment; the measures he proposes to address this matter; and if he will make a statement on the matter. [41124/15]
Amharc ar fhreagraI am advised by Revenue that the administration of Local Property Tax (LPT) is specifically provided for in legislation, the Finance (Local Property Tax) Act, 2012 (as amended) (the Act).
I am advised by Revenue that it is has considered the Bara judgement with regard to any possible implications for it as a data controller. The Bara judgement concerned the sharing between two state entities in Romania of data without legislative authority or consent from data subjects. On that basis the European Court of Justice found that the data sharing in question was illegal without notification to or consent from the data subjects.
Unlike the situation in the Bara case where there was no legislative basis for the transfer of the specific data, Section 151 of the Act explicitly states that Revenue can request 'relevant persons' to provide it with any information in their possession or control that may be required for the administration of LPT, including for the purposes of establishing and maintaining the Property Register. Section 153 also clearly sets out the entities that are considered to be 'relevant persons' for the purposes of LPT.
Revenue has confirmed to me that it is satisfied that all of the information sourced from the various 'relevant persons' was done in accordance with legislation. Therefore the Bara Judgment does not apply.
Revenue also advises that it is in regular contact with the Data Protection Commissioner's office in respect of its obligations generally as a data controller. Revenue does not engage in systematic exchange of data without a specific legislative basis in either tax or other specific legislation.
70. Deputy Catherine Murphy asked the Minister for Finance if he will indicate, in tabular form, all instances from 1 January 2000 to 2015 to date where legislation introduced by him or on his behalf, which is enacted and still in force, contains a provision amending the Data Protection Acts to allow for the transfer of personal or other data collected, retained and processed by the State for a particular purpose towards another specific purpose; if he will indicate for each such case the financial cost of creating and administering such databases; the projected financial cost for databases not yet complete; the specific legislative provision which enabled such data transfers; and if he will make a statement on the matter. [41137/15]
Amharc ar fhreagraIn the period referred to by the Deputy, there has been no legislation introduced by the Minister for Finance which contains a provision amending the Data Protection Acts. However, examples of legislation which affect the operation of the Data Protection Acts is set out below.
It should be noted that the Data Protection Acts 1988 and 2003 do not operate to prevent the disclosure of personal data in certain cases, including where the disclosure is required by or under any enactment or by a rule of law or order of a court, as set out in Section 8 of the 1988 Act, as amended. In those circumstances personal data can be disclosed without requiring any amendment of the Data Protection Acts.
|
Legislation |
Relevant provisions |
|
Customs and Excise (Mutual Assistance) Act, 2001 Customs and Excise (Mutual Assistance) Act 2001 (Section 8) (Protection of Manual Data) Regulations 2004 |
The Customs and Excise (Mutual Assistance) Act, 2001 give force of law in the State to the CIS Convention, the 1996 Protocol, the 1999 Protocol and the Customs Co-operation Convention which provide for the mutual assistance and co-operation between Member State customs' administrations. Section 5(1) of the Act applies the protection of the Data Protection Act to any personal data collected, processed, kept, used or disclosed that is included in or received from the Customs Information System under the CIS Convention. SI 254/2004, the Customs and Excise (Mutual Assistance) Act 2001 (Section 8) (Protection of Manual Data) Regulations 2004 extend the protection of the Data Protection Acts to manual data created prior to the Data Protection (Amendment) Act, 2003 that is processed under the 2001 Act. |
|
Credit Reporting Act 2013 |
Section 19 provides for the Data Protection Act to have effect as if- Personal data included relevant credit data (information held on the Central Credit Register which relates to a person to with annual turnover of not more than €3,000,000, if it were information relating to a living individual, would be personal data for the purposes of the Data Protection Acts 1988 and 2003), and a person with an annual turnover of not more than €3,000,000 was a living individual. |
71. Deputy Sean Fleming asked the Minister for Finance the number of new State bodies and agencies under his remit that have been established since February 2011; the number of such bodies subject to a sunset clause; the number of new public bodies currently being planned; and if he will make a statement on the matter. [41270/15]
Amharc ar fhreagraIn response to the Deputy's query, please find, in tabular form, the number of new State bodies and agencies under his remit that have been established since February 2011; the number of such bodies subject to a sunset clause; and the number of new public bodies currenty being planned
I would ask the Deputy to note that The New Economy and Recovery Authority (NewERA) has been established on a statutory basis within the NTMA following the commencement of the relevant section of the National Treasury Management Agency (Amendment) Act 2014. All staff assigned to the NewERA are employees of the NTMA. NewERA is not a new Body/Agency it is a new function of the NTMA.
|
Body |
Date on which the Body was created |
Is the Body subject to a sunset clause |
Number of new public bodies currently being planned |
|
Credit Union Restructuring Board (ReBo) |
ReBo was established by the Minister on an Administrative basis in August 2012. ReBo was placed on a statutory basis on 1 January 2013 on commencement of section 42 of the 2012 Act |
Yes. ReBo was to have fulfilled its statutory function by December 2015. However, following a review of ReBo by the Minister credit unions now have until 31 March 2016 to receive a letter of offer from ReBo following submission of a high level business case to ReBo. ReBo will then be able to complete all restructuring projects in a methodical manner during 2016. The Minister can then dissolve ReBo when he is satisfied that ReBo has completed the performance of its functions under Part 3 of the Credit Union and Overseas Regulators Act 2012 |
None |
|
Irish Bank Resolution Corporation |
7 February 2013 Irish Bank Resolution Corporation (in Special Liquidation) Irish Bank Resolution Corporation was formed on 1 July 2011 and was the amalgamation of two pre-existing bodies (Anglo Irish Bank Corporation and Irish Nationwide Building Society). Irish Bank Resolution Corporation was subsequently liquidated and Irish Bank Resolution Corporation (in Special Liquidation) was created on 7 February 2013 |
No While there is no sunset clause in the legislation, Irish Bank Resolution Corporation is in liquidation. |
None |
|
Irish Fiscal Advisory Council |
The Irish Fiscal Advisory Council was established on an interim basis in July 2011 and put on a statutory footing in December 2012 by the Fiscal Responsibility Act 2012 |
No |
None |
|
Strategic Banking Corporation of Ireland |
The SBCI was incorporated in September 2014 |
No |
None |
72. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he is aware of the Bara judgment of the Court of Justice of the European Union delivered last month (details supplied); if he will indicate the implications of this judgment for the planned data sharing Bill; and if he will make a statement on the matter. [41119/15]
Amharc ar fhreagraI can assure the Deputy that my Department is aware of the recent Judgement of the European Court of Justice in the case to which her question refers. This, and other relevant jurisprudence of the Court, will be taken into full consideration during the detailed legal drafting of the Data Sharing and Governance Bill, which my Department intends to undertake shortly in conjunction with Advisory Counsel and Parliamentary Counsel in the Attorney General's Office. We will also be consulting in this matter with, inter alia, the Department of Justice and Law Reform, which has overall policy responsibility for data protection.
