Wednesday, 20 Jan 2016

Written Answers Nos. 68-73

Tax Collection

Ceisteanna (68)

Róisín Shortall

Ceist:

68. Deputy Róisín Shortall asked the Minister for Finance if he is now in a position to provide the details requested in Parliamentary Questions Nos. 202, 203, 204 and 205 of 1 December 2015. [2509/16]

Freagraí scríofa

Minister for Finance

In relation to questions 202 to 205 of 1 December 2015, the collation of the relevant details has taken some time. However, I am now in a position to provide the information requested by the Deputy.

I am advised by the Revenue Commissioners that the table below sets out, within each of the income ranges requested, the number of income earners, the average effective income tax rate and the number of income earners who had effective income tax rates of the levels specified.

 Numbers of Income Earners at each Effective Income Tax Rate*

Taxable Income Range	Numbers of Income Earners	Average Effective Income Tax Rate	< 1%	Between 1% and 2%	Between 2% and 5%	Between 5% and 10%	Between 10% and 15%
€100,000 to €250,000	85,300	27%	80	20	90	410	530
€250,000 to €500,000	7,900	35%	16	4	10	20	20
> €500,000	2,300	37%	5	2	3	10	10

*As a percentage of taxable income, and excluding USC.

The figures are in respect of the 2013 tax year, the most recent year for which data are available.

I am further advised by the Revenue Commissioners that included within the cases above are an estimated 50 income earners who had taxable income in excess of €100,000 but who had no final income tax liability in Ireland for 2013. These cases had their tax reduced as a result of the following reliefs and credits which are not included in calculating 'Taxable Income':

- Double Taxation Relief, whereby relief is allowed against Irish tax payable for tax paid on the same income in another jurisdiction.

- Trans-border Relief, which may apply where an individual who is resident in Ireland and commutes daily/weekly to his/her place of work abroad and who pays tax in the other country on the income from that employment.

- Top Slicing Relief, which was a relief granted in respect of the tax payable on a lump sum payment on redundancy or retirement (abolished with effect from 2014).

- Medical Insurance Credit

Double taxation relief and trans-border relief are also likely to be a major factor in the calculation of the net liability in Ireland for the cases outlined in the table above. Therefore, while it appears that these individuals have a low effective income tax rate income tax in Ireland, it is likely that they are also paying income tax in other jurisdictions.

Furthermore, the Deputy will be aware that in view of the difficult circumstances and fluctuating incomes that taxpayers can experience, successive Governments have provided for marginal rated tax relief for, inter alia, nursing home fees and personal pension contributions. The limits for tax relief on the latter increase in line with the age of the individual concerned, in recognition of the possibility that the individual may not have had the requisite income to make sufficient contributions in earlier years. The claiming of such reliefs acts to reduce the effective income tax rate paid by those individuals. In this regard it is worth pointing out that not all tax reliefs are 'specified reliefs' for the purposes of the high earners restriction.

Information provided by the Revenue Commissioners in respect of taxes paid, is non-specific in nature and therefore it would not be appropriate to seek definitive details in relation to the specific reliefs claimed by the relevant individuals.

"Taxable Income" is that part of income on which tax is actually calculated.  It is thus the total income of taxpayers less personal reliefs and other deductions but prior to the application of tax credits and reliefs at the standard rate, which are given by way of a reduction of tax chargeable.

Flood Risk Assessments

Ceisteanna (69)

Caoimhghín Ó Caoláin

Ceist:

69. Deputy Caoimhghín Ó Caoláin asked the Minister for Public Expenditure and Reform the number and location of identified hotspots in counties Monaghan and Cavan included in the catchment flood risk assessment management programme; the intended address and timeframes regarding each of these; the criteria used in identifying designated hotspots; and if he will make a statement on the matter. [2421/16]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The core strategy for addressing areas at potentially significant risk from flooding is the Catchment Flood Risk Assessment and Management (CFRAM) Programme currently being undertaken Office of Public Works (OPW) in partnership with its consultants, local authorities and other stakeholders.

The 300 Areas for Further Assessment (AFAs) were determined under the Preliminary Flood Risk Assessment (PFRA). In 2011 the OPW completed the PFRA a national screening exercise under the CFRAM Programme, using all available information including:

- reviewing records of floods that happened in the past,

- undertaking analysis to determine which areas might flood in the future, and what the impacts might be,

- site inspections by suitably qualified professionals, and

- consulting with the Local Authorities, other Government departments and agencies and the public.

In relation to County Monaghan, the following locations have been identified as AFAs - Ballybay, Carrickmacross, Inniskeen and Monaghan Town. In County Cavan the AFAs are Ballyconnell and Cavan Town. These AFAs are being assessed as part of the North Western - Neagh Bann CFRAM Study.

The CFRAM Programme involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of flood risk management plans.

Public Consultation Days were held in Counties Cavan and Monaghan on the draft flood mapping during February and March 2015 and a further round of local consultation events will be held in the coming months on the preliminary options to manage flood risk. Catchment wide preliminary options will be available at the upcoming public consultation for discussion.

Under the CFRAM Programme, the draft mapping is now being finalised following completion of the national statutory public consultation on 23 December, 2015. Following finalisation of the mapping and the identification of preliminary flood risk management options, the final output from this important project will be integrated Flood Risk Management Plans containing specific feasible measures to address significant flood risks identified. The Plans are scheduled to be prepared and published for public consultation in mid 2016. The Plans will set out specific measures to address the significant flood risk factors in a proactive and comprehensive way. The Government announced €430m for capital flood relief works as part of the overall Capital Investment Plan 2016-2021. This increased level of funding will allow for the prioritised investment for the Flood Risk Management Plans over the coming years.

Further information is available on the study website: www.northwestcframstudy.ie.

Flood Relief Schemes Funding

Ceisteanna (70)

Michael McGrath

Ceist:

70. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will respond to an issue relating to flood funding raised by an organisation (details supplied) in Cork city; and if he will make a statement on the matter. [2390/16]

Freagraí scríofa

Minister for Public Expenditure and Reform

The Lower Lee (Cork City) Flood Relief Scheme is at design stage with the outline design expected to be completed in the next few months. At the same time, an Environmental Impact Statement will be completed. It is expected that this will allow the holding of a formal public exhibition in mid 2016 following which work on the detailed design will be progressed with the aim of enabling the OPW to submit the Scheme for Ministerial Confirmation under the Arterial Drainage Acts as early as possible in 2017.

In relation to management of the flood risk for Cork, the Office of Public Works (OPW) is currently undertaking the Catchment Flood Risk Assessment and Management (CFRAM) Programme throughout the country. The Programme involves an assessment of 300 locations nationwide including 90 coastal locations, the mapping of potentially significant flood risk areas and the production of flood risk management options and plans. These draft Flood Risk Management Plans are due to be published in mid-2016 for public consultation.

In the context of the CFRAM Programme, the Government announced two pilot Individual Property Protection (IPP) projects on 5 January 2015. These are community based pilots to inform the mechanism to deliver IPP, as part of a community based approach or scheme and also the potential costs and benefits attached to IPP for areas where a flood defence scheme is not likely to be completed for some time.

These pilots are:

- a feasibility study in Thomastown and Graiguenamanagh, where Kilkenny County Council has procured consultants to carry out the study that are due to be appointed in January 2016. The consultants will survey each property to establish potential and appropriate IPP options for the community. The development of all possible feasible flood defence options for these towns is an ongoing part of the CFRAM process, and

- Mayo County Council is considering the potential viability of a scheme for the installation of flood gates for some properties, identified by the community in Crossmolina, as an interim measure to help mitigate any further flood damage pending the completion of the defence scheme for the town.

The pilots will, in time, inform any extension of IPP to other areas.

Estimates Process

Ceisteanna (71)

Seán Fleming

Ceist:

71. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the Supplementary Estimates provided for in 2015; the amount of money that was spent by the end of 2015; the implications for 2016 budgets of any underspend; and if he will make a statement on the matter. [2438/16]

Freagraí scríofa

Minister for Public Expenditure and Reform

Consistent with the requirements of the Stability and Growth Pact (SGP), the pace of economic growth and greater than forecasted tax receipts allowed the Government to allocate - on a prudent basis - additional amounts to expenditure in priority areas in 2015.

The Revised Estimates Volume ("REV") 2016 published on 17 December 2015 sets out gross voted expenditure for 2015 of €54,915 million and net voted expenditure of €43,134 million. These amounts include total Supplementary Estimates of €1,409.6 million set out in Table 1. The impact of these Supplementary Estimates in gross terms was just under €1.7 billion.

Table 1 Supplementary Estimates 2015	€'000
V6 - CHIEF STATE SOLICITOR'S OFFICE (NET)	1,500
V7 - DEPARTMENT OF FINANCE (NET)	1
V12 - SUPERANNUATION AND RETIRED ALLOWANCES (NET)	16,770
V17 - PUBLIC APPOINTMENTS SERVICE (NET)	380
V20 - GARDA SÍOCHÁNA (NET)	35,200
V21 - PRISONS (NET)	6,297
V26 - EDUCATION AND SKILLS (NET)	175,000
V29 - COMMUNICATIONS, ENERGY & NR (NET)	1
V30 - AGRICULTURE, FOOD AND MARINE (NET)	104,000
V31 - TRANSPORT, TOURISM AND SPORT (NET)	100,000
V32 - JOBS, ENTERPRISE AND INNOVATION (NET)	50,000
V35 - ARMY PENSIONS (NET)	6,500
V37 - SOCIAL PROTECTION (NET)	299,000
V38 - HEALTH (NET)	600,000
V40 - CHILDREN AND YOUTH AFFAIRS (NET)	15,000
Net Vote Total	1,409,649

REV 2016 included an estimated gross voted expenditure forecast outturn for 2015 of €54,766 million. Information published with the end December Exchequer returns indicates a gross voted expenditure outturn for 2015 of €54,670 million.  This is indicative of the end-year position in advance of the publication of the 2015 audited outturn figures.

The aggregate gross voted expenditure estimate for 2016 in the REV of €55,299 million represents an increase of just over €380m over the ceiling of €54,915 million for 2015, inclusive of the Supplementary Estimates. This is consistent with the year on year increase between the overall expenditure ceilings for 2015 and 2016 set out in the Expenditure Report 2016 published on Budget day. As Ireland is moving to the preventive arm of the Stability and Growth Pact in 2016, it is important that Departments manage expenditure for 2016 within the allocations set out in REV 2016.

Ombudsman's Remit

Ceisteanna (72)

Seán Fleming

Ceist:

72. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he will give the Ombudsman power to investigate complaints relating to Irish Water; and if he will make a statement on the matter. [2439/16]

Freagraí scríofa

Minister for Public Expenditure and Reform

Under Section 1A of the Ombudsman Act, the Minister for Public Expenditure and Reform may, after consultation with the Ombudsman, the Ombudsman for Children and such committee of the Houses of the Oireachtas as he or she considers appropriate, and with the consent of such other Minister which is responsible for the entity in question, may by order propose - for approval by the Oireachtas - that a body is subject to review by the Ombudsman.

In the case of Irish Water, the Commission for Energy Regulation (CER), has a statutory responsibility under the Water Services Act 2014 to provide a complaints resolution service to Irish Water customers with an unresolved dispute with Irish Water. Following investigation, the CER has the power to direct Irish Water to resolve the complaint in a set fashion if the complaint is upheld and where appropriate to pay a refund or compensation.

In addition, my Department has been advised by the Department of the Environment, Community and Local Government (D/ECLG) that an independent consumer consultative forum, known as the Public Water Forum was established by the CER in 2015.  The Forum is an independent body, playing a crucial role in ensuring that water consumers, both domestic and non-domestic, participate in the development of, and debate about, public water policy.

In those circumstances, D/ECLG advised my Department that it is not currently proposed to make any changes to the Irish Water dispute resolution mechanism.

Living Wage

Ceisteanna (73)

Seán Fleming

Ceist:

73. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he has assessed the cost of paying a living wage across all Departments and State agencies; and if he will make a statement on the matter. [2440/16]

Freagraí scríofa

Minister for Public Expenditure and Reform

I refer the Deputy to my reply to Parliamentary Question No. 2086/16 of 19 January 2016.