Written Answers Nos. 55-67
55. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the status of an application for domiciliary care allowance by a person (details supplied) in County Kerry; and if she will make a statement on the matter. [45585/15]
Amharc ar fhreagraAn application for domiciliary care allowance was received from the person concerned on the 26 August 2015. This application was not allowed as the child was not considered to satisfy the qualifying conditions for the allowance. A letter issued on the 13 November 2015 outlining the decision of the deciding officer to refuse the application.
A review of this decision was requested on 23 November 2015 and additional information on this child's condition/care needs has been supplied. The application together with the new information supplied has been forwarded to a medical assessor for their professional opinion. Once this opinion is received the application will be re-examined by a deciding officer and a revised decision will be made if warranted. The person concerned will be notified of the outcome of this review as soon as it is completed. Such reviews can take up to 12 weeks to complete at present.
56. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if and when payment will issue to a person (details supplied) in County Kildare who has not received payment for two weeks; what is the appropriate payment to this person, who was previously a casual worker but who has not worked in a number of months and has an application for the back to work enterprise allowance pending; and if she will make a statement on the matter. [45586/15]
Amharc ar fhreagraAccording to the records of the Department the person concerned advised that he is a casual worker and is classified as such. As a casual worker he was requested to produce documentation relating to his employment in late October 2015, he was advised his payment would be affected if this documentation was not returned. The requested documentation was not returned and his claim was suspended pending the receipt of same. The Department has now been advised by the person concerned that his casual employment has ceased and he is requested to submit documentation to confirm this position. I understand that the person concerned has made an application for supplementary welfare allowance and has received a BASI payment.
According to the records of the Department there is no application for Back to Work Enterprise Allowance for the person concerned.
57. Deputy Mick Wallace asked the Tánaiste and Minister for Social Protection if she will amend legislation on the State pension (contributory) so that the calculation of average contributions only takes into account the number of years actually worked, rather than the number of years since the person started working, given that the current system unfairly penalises women who took breaks in their employment in order to raise children; and if she will make a statement on the matter. [45590/15]
Amharc ar fhreagraThe State pension contributory is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid or credited over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement. Since 1961, when contributory pensions were introduced, the average contributions test has been used in calculating pension entitlement. Once over 16 years of age, the date a person enters into insurable employment is the date used for averaging purposes.
The homemaker's scheme makes qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme, which was introduced in and took effect from 1994, allows up to 20 years spent caring for children under 12 years of age (or caring for incapacitated people over that age) to be disregarded when a person's social insurance record is being averaged for pension purposes, subject to the standard qualifying conditions for SPC also being satisfied.
For those with insufficient contributions to meet the requirements for a State pension (contributory), the State pension system provides alternative methods of support. If their spouse has a contributory pension, they may qualify for an Increase for a Qualified Adult amounting up to 90% of a full rate pension, which by default is paid directly to them. Alternatively, they may qualify for a means-tested State Pension (non-contributory), amounting to 95% of the maximum contributory pension rate.
The most recently published Actuarial Review of the Social Insurance Fund confirms that the Fund provides better value to female rather than male contributors. It further confirms that those with lower earnings and those with shorter contribution histories, mostly women, have and will continue to obtain the best value for money from the Fund due to the distributive nature of the Fund.
Work is underway to replace the 'yearly average' system with a 'total contributions approach'. Under this approach, the number of contributions recorded over a working life will be more closely reflected in the rate of pension payment received. It is expected that the total contributions approach to pension qualification will replace the current average contributions test for State pension (contributory) for new pensioners from 2020, although that date is subject to change, as this is a very significant reform with considerable legal, administrative, and technical challenges to be overcome in its implementation. The position of women who were homemakers will be considered very carefully in developing this reform.
58. Deputy Gerry Adams asked the Tánaiste and Minister for Social Protection the status of the case of a person (details supplied) in County Louth who applied for carer's allowance on behalf of a spouse in August 2015 but has not yet received a response; when a decision will be made; and if she will make a statement on the matter. [45592/15]
Amharc ar fhreagraCarer's Allowance (CA) is a social assistance payment made to persons who are providing full-time care and attention to a person who has a disability such that they require that level of care and who satisfy a means test.
I can confirm that an application for CA was received on 18 August 2015. A request for information issued to the person concerned on 8 December 2015.
Once the requested information is supplied, a decision will be made without delay and the person concerned will be notified directly of the outcome.
59. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection the terms of reference and timeframe for the proposed review of the rate of jobseeker's allowance for young persons under 25 years of age, which she recently announced; if the review will allow for input and submissions from organisations working on this issue; and if she will make a statement on the matter. [45597/15]
Amharc ar fhreagraReduced rates for younger jobseeker's allowance recipients were first introduced in 2009, extended in Budget 2014 and now apply to jobseeker's allowance recipients under 26 years of age. These measures are targeted activation measures, aimed at protecting young people from welfare dependency by incentivising them to avail of education and training opportunities. If a jobseeker in receipt of the reduced jobseeker's allowance rate participates on an education or training programme they will receive a higher weekly payment of €160.
The Labour Market Council is a group comprising of independent industry leaders and labour market policy experts from organisations including the OECD, SIPTU and the Irish National Organisation for the Unemployed. The Council has responsibility for driving the implementation of the Pathways to Work strategy and for advising on labour market policy. That is why I have asked the Council to examine the reduced rates of jobseeker's allowance for those under 26 years of age.
I have asked my officials to draft the terms of reference and broad structure of the Council's review and this work is currently ongoing.
60. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection the number of education, training and work experience places delivered under the Youth Guarantee in 2015 to date; and if she will make a statement on the matter. [45599/15]
Amharc ar fhreagraThe Government's primary strategy to tackle youth unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth and the availability of productive employment for young people.
Within this strategy, the Youth Guarantee sets a medium-term objective of ensuring that young people receive an offer of employment within four months of becoming unemployed. The main plank of the guarantee is assistance to young people in finding and securing sustainable jobs. For those who do not find employment, additional offers are provided for. Most such offers (over 70%) are in further education or training. Others are in community-based employment programmes such as CE, Gateway and Tus, or through the JobsPlus employment subsidy for private employment.
Overall, the Youth Guarantee provided nearly 25,000 places for young people in 2014. This figure excludes some 24,000 places provided for young people through PLC courses and apprenticeships. (These PLC and apprenticeship places, together with the wide range of vocational third-level courses provided for the young, although not reserved for unemployed jobseekers, nevertheless contribute to the spirit of the guarantee.)
The following table details the expected full year intake for 2015 as well the actual number of starters up to the most recent date for which data are available. (Apprenticeship and PLC places are, again, excluded).
Youth Guarantee Progress - 2015 Starters
|
Programme |
Expected full-year Intake |
2015 information to date |
Note |
|
Youthreach |
688 |
Expected full year intake combines Youthreach and Community Training Centres. Youthreach places as of end May 2015 |
|
|
Community Training Centres |
3,300 |
1480 |
As of end November 2015 |
|
JobBridge |
5,000 |
2,120 |
As of mid December 2015 |
|
Tus |
1,000 |
1,070 |
As of end September 2015 |
|
JobsPlus (including JobPlus Youth) |
1,500 |
721 |
As of end October 2015 |
|
Momentum |
2,000 |
1,053 |
As of mid December 2015 |
|
BTEA (excl Momentum) |
3,300 |
NIA |
|
|
BTWEA |
200 |
151 |
As of end September 2015 |
|
VTOS |
500 |
N/A |
Enrolment begins in September |
|
Former FAS/SOLAS* |
9500 |
6,409 |
Based on Specific Skills Training, Traineeship, Bridging & Local Training Initiative starters end November 2015. |
|
County Enterprise Board Youth Entrepreneurship Training and Mentoring supports. |
700 |
N/A |
This programme has been superseded by Ireland's Best Young Entrepreneur 2014/5 competition |
|
Micro Finance Ireland micro-loans for young people. |
150 |
N/A |
Age-specific breakdowns not yet available. |
|
International Work Experience and Training |
250 |
8 |
As of mid December 2015 |
|
Gateway |
450 |
272 |
As of end September 2015 |
|
Community Employment |
500 |
686 |
As of mid December 2015 |
|
Total |
28,350 |
14,650 |
Excluding where figures are not available |
61. Deputy Dominic Hannigan asked the Minister for Finance if the difference in taxation of maintenance payments received is in contravention of Article 40.1 of Bunreacht na hÉireann, which states that all citizens are equal, with the rider that the State may have due regard to differences of capacity, physical and moral, and social function; and if he will make a statement on the matter. [45558/15]
Amharc ar fhreagra64. Deputy Dominic Hannigan asked the Minister for Finance the reason persons in receipt of maintenance payments are treated differently in regard to the taxation of those payments, in that they pay more income tax than those with the same income where that income is not from maintenance payments; and if he will make a statement on the matter. [45553/15]
Amharc ar fhreagraI propose to take Questions Nos. 61 and 64 together.
I am assuming that the Deputy is referring to the tax liability that arises on an individual who receives maintenance payments and is taxable on that income compared to the tax liability that arises on an individual whose income, under the Tax Acts, includes earned income.
In determining the amount of income tax payable on an individual's income, the individual may be entitled to either the Employee (PAYE) Tax Credit or the Earned Income Tax Credit, where it is shown that the individual's income, or an element of it, consists of earned income.
Earned income is defined, in broad terms, either as income arising from an individual's trade or profession, where the individual is self-employed, or as PAYE income where the individual is an employee.
Income received by an individual in respect of maintenance payments does not fall within the definition of earned income and as such, there is no entitlement to either the Employee (PAYE) Tax Credit or the Earned Income Tax Credit.
The treatment of maintenance payments and the income tax liability on that income is directly comparable with the tax arising on other taxpayers whose total income does not include earned income.
I would also point out that the tax treatment of a separated couple with one income earner is equivalent to the tax treatment of a married couple with one income-earner, insofar as only the income-earning spouse would be entitled to claim a PAYE or Earned Income Credit, as appropriate.
The constitutionality of the various provisions of the tax code are ultimately a matter for the courts to decide, where issues are put before them. However, the Deputy should be aware that due regard is given to the provisions of the Constitution when constructing the tax code.
62. Deputy Dominic Hannigan asked the Minister for Finance if the Revenue Commissioners can demand back income tax with interest, having previously made the mistake every year for a number of years of informing a citizen that the citizen had no liability for income tax; and if she will make a statement on the matter. [45560/15]
Amharc ar fhreagraIt would seem that the Deputy has a specific case in mind as regards the circumstances outlined in his Question. I am advised by Revenue that without more detailed information on the particular case, it is not possible to fully consider the assertions made by the Deputy and therefore to enable me to provide a more comprehensive reply. If the Deputy wishes to provide more specific information, I will arrange that my officials pass this information on to Revenue and the matter can be followed up in greater detail.
The Deputy will be aware that in general the principle of self-assessment applies to taxes administered by Revenue. The primary responsibility for calculating and paying the correct amounts of tax rests with the taxpayer. Revenue does of course offer a significant range of supports to the taxpayer to calculate and pay the right amount.
Any tax return or declaration made by a taxpayer may be subject to a Revenue compliance intervention to ensure the completeness and accuracy of return or declaration. Where, in that context, a return or declaration is found to be incorrect, giving rise to an under declaration of tax due, Revenue will seek any additional tax, interest and possibly penalties.
63. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied regarding the availability of working capital throughout the hotel and catering sectors; and if he will make a statement on the matter. [45643/15]
Amharc ar fhreagraAs the Deputy is aware, the Government recognises that small businesses, including those in the hotel and catering sector, play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. Officials from my Department regularly meet representatives from the SFA, ISME and Chambers Ireland, whose membership encompasses the hotel sector, to discuss issues around access to finance.
The Central Statistics Office release "Overseas Travel August - October 2015" (http://www.cso.ie/en/releasesandpublications/er/ot/overseastravelaugust-october2015/) shows that in the period January to October 2015, there were over 7.4 million visits to Ireland. Overall trips to Ireland were up 12.8% in the first ten months of 2015 compared to the same period in 2014. For the three-month period from August-October 2015, overseas trips to Ireland increased by 14%.
Tourism delivers income and jobs in every town and city in the country. The reduction in VAT to 9% in the tourism sector and the abolition of the air travel tax improved Ireland's competitiveness. The 9% VAT rate is a major benefit to the tourism sector and is much sought after by other sectors in the economy. I announced changes to the Employment and Investment Incentive scheme last year subject to compliance with European State Aid provisions. With specific regard to the hospitality sector, I extended the inclusion of hotels, guest houses and self-catering accommodation in the scheme by a further 3 years. The benefit of these policies can be seen in tourist numbers, new businesses, the survival of established businesses and, most of all, in employment.
Turning to the banking sector, AIB and Bank of Ireland are concentrating on growing their balance sheets. In this context, both banks recognise the need to increase business lending and have put on record their commitment to the SME sector.
My Department has been involved in a range of initiatives to encourage access to credit for small and medium sized businesses. The SME State Bodies Group provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance, and includes representation from Fáilte Ireland.
Some of the main policies introduced by this Government to encourage access to credit for small and medium businesses include:
- The Supporting SMEs Online Tool, a cross-government initiative, was launched in May 2014. On answering 8 simple questions, the small business will receive a list of available Government supports. The Supporting SMEs Online Tool is available at www.supportingsmes.ie
- The Strategic Banking Corporation of Ireland has been established as a means of ensuring that SMEs are provided with sufficient finance for growth. The Strategic Banking Corporation of Ireland (SBCI) is an initiative designed to increase the availability of funding to SMEs at a lower cost and on more flexible terms then have recently been available on the Irish Market in recent times. The SBCI does not lend directly to SMEs. It uses a network of lending partners known as 'on lenders' to make its funds available to SMEs. Bank of Ireland, AIB, Finance Ireland and Merrion Fleet Management are all current on lending partners of the SBCI. The SBCI has reached a significant milestone as €110 million has now been drawn down by 3,200 SMEs. More information on the SBCI can be found on www.sbci.gov.ie.
- The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs. My colleague, the Minister for Jobs, Enterprise and Innovation, has recently brought legislation to the Oireachtas which will enable the development of a more flexible Credit Guarantee Scheme with longer duration and more products and providers included.
- The Microenterprise Loan Fund, administered by Microfinance Ireland, provides support in the form of loans for up to €25,000, available to start-up, newly established, or growing micro enterprises employing less than 10 people, with viable business propositions. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund www.microfinanceireland.ie
- The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. They also examine cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment. This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Reviewer John Trethowan and his team have overturned 55% of the refusals that have been appealed to the Office. Further details are available at www.creditreview.ie
My Department and the Credit Review Office, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit on both a macro and sectoral basis in order to ensure that sufficient access to finance is available to facilitate participants in the SME sector to reach their full potential in terms of growth and employment generation. In this context, the Action Plan for Jobs 2015 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.
65. Deputy Anne Ferris asked the Minister for Finance the status of customs officials conducting spot-checks on the contents of aeroplanes landing at Irish airports for refuelling purposes to ensure they are not carrying goods or munitions that make the landing contrary to Irish law; and if he will make a statement on the matter. [45482/15]
Amharc ar fhreagraThe responsibilities of customs officials at ports and airports are concerned with goods and persons entering or leaving the State. Aircraft which land solely for the purpose of refuelling are not involved in importing or exporting goods to or from Ireland, and so are not subject to customs controls. Thus there is no customs requirement for a declaration regarding passengers, crew or goods on board, nor is there a basis for a customs inspection.
If crew members seek to enter the State or import goods into the State they are, of course, subject to customs clearance.
66. Deputy Joe Costello asked the Minister for Finance his views on correspondence (details supplied) regarding flood insurance; and if he will make a statement on the matter. [45520/15]
Amharc ar fhreagraI am aware of the difficulties that the absence of flood insurance cover can cause to householders and businesses. However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals.
The Government's strategy on insurance and flooding is focussed on ways to address the increased availability of flood insurance. This involves:
a) prioritising spending on flood relief measures;
b) development and implementation of plans by the Office of Public Works (OPW) to implement flood relief schemes; and
c) the transfer of data in relation to completed flood defence schemes to the insurance industry by the OPW.
Progress is continuing on the implementation of this strategy.
Officials in my Department have consulted with the OPW regarding completed flood relief works in the Dublin area and I am informed that the River Tolka Dublin City Flood Relief Scheme provides protection against tidal and fluvial flooding to the East Wall area. Details of the protected areas, as provided to Insurance Ireland, are available at http://maps.opw.ie/defended_areas/map/
Individuals who are experiencing difficulty in obtaining flood insurance and who believe that they are being treated unfairly, may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. This service can be contacted at (01) 676 1914 or by email at info@insuranceireland.eu
67. Deputy Peadar Tóibín asked the Minister for Finance if he will provide details of the projects in which the Ireland Strategic Investment Fund has invested in tabular form. [45588/15]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) has provided the following table which provides preliminary and unaudited data as at 30 September 2015. The summary data are published on a quarterly basis on ISIF's website and a detailed listing of investments is published annually in the NTMA's Annual Report.
|
30/09/2015 |
Total ISIF Commitment (€m) |
3 Party Committed capital in Ireland (€m) |
Total Project Size in Ireland (€m) |
Multiple of Total Project Size in Ireland to Total ISIF Commitment |
|
Water |
300 |
600 |
900 |
3.0x |
|
Infrastructure |
250 |
155 |
405 |
1.6x |
|
Energy |
44 |
456 |
500 |
11.4x |
|
SMEs |
325 |
417 |
742 |
2.3x |
|
Food & Agriculture |
30 |
187 |
217 |
7.2x |
|
Real Estate Based Businesses |
400 |
370 |
770 |
1.9x |
|
Venture |
403 |
525 |
642 |
1.6x |
|
Direct Private Equity |
56 |
291 |
347 |
6.2x |
|
Committed to Date |
1,808 |
3,002 |
4,523 |
2.5x |
In addition, the ISIF announced 2 further commitments during November 2015:
1. The ISIF and institutional clients of US-based Quadrant Real Estate Advisors LLC have committed up to €100 million for financing high-quality office development and construction projects in Ireland. Under the investment mandate agreed with the ISIF, Quadrant will manage the provision of "senior stretch" loans, ideally suited to Grade A office development projects in strong markets which have planning permission but which may not yet have letting or sale agreements in place. The ISIF will invest up to €50 million alongside up to €50 million of capital from Quadrant's wider institutional client base.
2. Swrve, a global leader in mobile marketing engagement, announced in early November that it closed a $30 million funding and acquisition round led by the ISIF and US-based Evolution Media Partners. The company further announced that the round will enable it to create 45 jobs at its Dublin base.
