Written Answers Nos. 114-130
114. Deputy John McGuinness asked the Tánaiste and Minister for Social Protection if she will expedite an application by a person (details supplied) in County Kilkenny under the carer's allowance scheme; and if she will make a statement on the matter. [3121/16]
Amharc ar fhreagraI confirm that the Department received an application for carer’s allowance from the person concerned on 2 November 2015 in respect of two care recipients. The application is currently being processed and once completed, the person concerned will be notified directly of the outcome.
115. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection the status of the entitlement of a person (details supplied) under the illness benefit scheme; and if she will make a statement on the matter. [3130/16]
Amharc ar fhreagraIllness benefit is a payment for people who cannot work due to illness and who satisfy the pay related social insurance (PRSI) contribution conditions. One of the PRSI conditions is that a person must have a minimum of 39 reckonable contributions paid or credited in the governing contribution year. Claims made in 2015 are governed by the 2013 tax year, and only PRSI Classes A, E, H, and P are reckonable for illness benefit purposes.
The person concerned made a claim to illness benefit and this claim was received in my department on 23 February 2015 . The period of the claim was from 19 February 2015 to 3 April 2015. This claim was disallowed as, at the time the claim was decided, the person concerned did not satisfy the above contribution criteria. The PRSI record of the person concerned for 2013 has since been updated and payment of illness benefit due for the period of the claim has been issued to their bank account on 25 January 2016.
116. Deputy Jack Wall asked the Tánaiste and Minister for Social Protection the status of an application by a person (details supplied) in County Kildare under the disability allowance scheme; and if she will make a statement on the matter. [3152/16]
Amharc ar fhreagraI confirm that an application from the person concerned for disability allowance (DA) was received by the Department on 4 November 2015. The application has been referred to a Social Welfare Inspector (SWI) for a report on the person’s means and circumstances. Once the SWI has submitted his/her report to DA section, a decision will be made on the application and the person concerned will be notified directly of the outcome.
118. Deputy Ciara Conway asked the Tánaiste and Minister for Social Protection the reason and nature of the delay in settling cases in dispute under the Waterford Crystal settlement; when these will be resolved; and if she will make a statement on the matter. [3158/16]
Amharc ar fhreagraDuring the Mediation on the Waterford Crystal Pension Factory and Staff Schemes it was agreed by the parties that a dispute resolution procedure would be set up whereby disputes in relation to individual cases would be referred to a dispute resolution process under the auspices of the Workplace Relations Commission. The dispute resolution procedure is solely and exclusively for individual disputes concerning personal employment information particular to the individual used for the calculation of lump sums and monies in respect of pensionable service as set out in the letter of offer and/or deed of release including scheme service dates and calculations. It is my understanding that the Dispute Resolution Officer is actively engaged in examining all cases which have been submitted to him. In this regard, Department officials met with the Mediator and the Dispute Resolution Officer on 6th January who I understand subsequently met with representatives of Unite.
The finalisation of all aspects of the mediated agreement is a matter of priority, both for me and for the Department. I can assure the Deputy that every effort is being made to progress these issues as quickly as possible.
119. Deputy Jim Daly asked the Tánaiste and Minister for Social Protection in the lifetime of the Government, the number of proposals managerial staff in any agency or managerial body under her remit put forward to alter the roll-out of public services which were delayed, postponed or abandoned as a result of non-co-operation by trade union representatives; and if she will make a statement on the matter. [3179/16]
Amharc ar fhreagraThe full implementation of the Civil Registration Act 2014, including the implementation of the provisions to counter marriages of convenience; the compulsory registration of fathers names on birth registrations and other changes have been delayed following industrial action by HSE employed Registrars. An IR process is underway to resolve matters and the provisions in relation to sham marriages are being implemented.
The General Register office (which comes within the remit of the Department of Social Protection and is unaffected by the dispute) is proceeding to make the necessary system changes needed to implement the Act in full and these are well advanced.
120. Deputy Brendan Smith asked the Tánaiste and Minister for Social Protection if she will give further consideration to the request from the Ballybay and Clones municipal district to retain the offices of her Department in Ballybay, County Monaghan; if she will locate the proposed new Intreo centre for County Monaghan in Ballybay, as outlined in correspondence to her from the municipal district, given the benefits that arise for a small town such as Ballybay when such services are located therein; and if she will make a statement on the matter. [3184/16]
Amharc ar fhreagraThe Office of Public Works has now entered into a legal property arrangement to lease part of Teach O'Cleircin, Old Cross Square, Monaghan. There would be serious cost implications for reversing this decision and further time delays in pursing an alternative property at this stage. Teach O’Cleircin is the new location for the Public Services Card Centre.
Neither my officials, nor the Office of Public Works, considered that the properties on offer in Ballybay could meet the Department’s requirements and a decision has been made to move the current facilities to Monaghan Town and combine it with a public, customer facing facility to serve the people of Monaghan.
121. Deputy Willie Penrose asked the Tánaiste and Minister for Social Protection to expedite an application by a person (details supplied) in County Westmeath under the carer’s allowance scheme; and if she will make a statement on the matter. [3195/16]
Amharc ar fhreagraI confirm that the department received an application for carer’s allowance from the person concerned on 17 December 2015.
The matter was referred to a local social welfare inspector (SWI) on 22 January 2016 to assess means and to confirm that all the conditions for receipt of carer’s allowance are satisfied.
Once the SWI has reported, a decision will be made and the person concerned will be notified directly of the outcome.
122. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection the cost of extending the homemaker's credit scheme to persons who left the workforce to provide full-time care before April 1994; and if she will make a statement on the matter. [3197/16]
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. In this context, even if someone has only 10 years (520 weeks) of paid reckonable contributions between their 16th and 66th birthdays, they may qualify for a State pension (contributory), although the rate payable would vary depending on their circumstances.
The home-makers scheme makes qualification for a higher rate of 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 State pension contributory also being satisfied. This has the effect of increasing the yearly average of the pensioner, which is used to set the rate of their pension. The scheme does not involve the award of credits.
The 2007 Green Paper on Pensions estimated an annual cost of backdating the Home-maker's scheme, at that time, as €150 million (if to 1973) or €160 million (if to 1953). However it described those estimates as “extremely tentative” due to a number of factors, e.g., the fact that the cost would include, not just people resident in the State, but also many others resident in other countries, such as the UK. Backdating the scheme now, for existing pensioners, could be expected to be significantly more expensive because (a) there are some 50% more contributory State pensioners now than there were in 2007, (b) the rate of the pension has increased since 2007 by 11%, and (c) the current cohort of people reaching pension includes more women who have had a significant level of insurable employment and would therefore be in a position to benefit from the home-maker's scheme. The cost would also be expected to increase each year in the coming years.
It is worth noting that the Actuarial Review of the Social Insurance Fund in 2012 confirmed that the Fund provides better value to female rather than male contributors. This is due to the distributive nature of the Fund. For example, those with a yearly average of only 20 contributions (38% of the maximum) may qualify for 85% of the maximum rate. The Review also examined the changes in the contribution rules and the associated rates of payment which were to be introduced in September 2012. The Review found that those with lower earnings and those with shorter contribution histories still obtain the best value from their contributions.
Where people who were unattached to the labour market during most of their adult lives may not qualify for a contributory pension in their own right as they have paid few or no contributions, or cannot qualify for a full rate as a result of an intermittent PRSI record, the social protection system provides alternative methods of supporting such pensioners in old age. Therefore, 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 up to 95% of the maximum contributory pension rate.
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 components to be addressed prior its implementation. The position of women who were home-makers will be considered very carefully in developing this reform.
123. Deputy Catherine Murphy asked the Tánaiste and Minister for Social Protection why a person (details supplied) was not informed when commencing payment of pay-related social insurance contributions at the age of 59 years that the person would be ineligible for a State contributory pension on reaching the relevant age; if a person's work as a homemaker is covered under the homemaker's scheme; and if she will make a statement on the matter. [3217/16]
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.
There are a number of conditions which must be met in order to qualify for a State (contributory) pension. One of these is that a minimum number of reckonable contributions have been paid by the claimant since entering insurable employment, before they reached pension age. Previously the number of paid reckonable contributions required was 260. However, Section 12 of the Social Welfare Act 1997 increased this to 520 contributions, with effect from April 2012, and this has applied to new claimants from that date. Another condition is that a person should start paying social insurance before age 56.
I understand that, according to the records of my Department, the person concerned first became liable for PRSI in 2006, shortly before her 61st birthday, approximately 5 years (or some 266 weeks) before she reached State pension (contributory) age of 66 in February 2011. I understand that officials in my Department have disallowed claims from her to State pension (contributory) on three occasions since then. On the first occasion (10 January 2011), her disallowance was on the basis that there was PRSI outstanding. It is not possible for claims to be processed and put into payment in such circumstances. Her second disallowance issued on 22 February 2011. This decision stated that she did not enter insurance before 56 years of age, and she did not have 260 paid contributions. Her third disallowance, on 23 May 2011, re-stated that she did not enter insurance before 56 years of age (I understand additional contributions had been awarded since her second disallowance).
The conditions for entitlement to social protection benefits are not fixed, and legislation may be passed by the Oireachtas to vary the basis upon which someone may qualify for such a pension. This applies to all such benefits. My Department does not, therefore, contact people entering insurable employment or self-employment, to advise them of their future entitlement (or non-entitlement) to a pension or any other social protection payment, as to do so may create expectations which might not apply. Nor is it the case that, where a person has an outstanding PRSI liability, that they are offered comprehensive advice as to what benefits they may attract if they pay the money owed. The position, generally, with PRSI is that it must be paid as set out in legislation, regardless of whether it will result in a benefit or not.
The existing conditions for State pension (contributory) are, however, widely disseminated, not just by my Department through leaflets and on its website, but also by the national network of Citizens Information Centres. Self-employed contributors may also be advised of the current position by their accountants, if they are financially planning for their retirement.
The home-maker's scheme makes qualification for a higher rate of State pension (contributory) easier for those who take time out of the workforce for caring duties. However, this scheme does not involve the award of paid or credited contributions, and if a person does not satisfy the general conditions to qualify for a pension, such as the age of entry into social insurance, this scheme will not assist in meeting that qualification.
Where people who were unattached to the labour market during most of their adult lives cannot qualify for a contributory pension in their own right as they have paid few or no contributions, or cannot qualify for a full rate as a result of an intermittent PRSI record, the social protection system provides alternative methods of supporting such pensioners in old age. Therefore, 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 up to 95% of the maximum contributory pension rate.
124. Deputy John McGuinness asked the Tánaiste and Minister for Social Protection if she will expedite a review under the invalidity pension scheme for a person (details supplied) in County Kilkenny; and if she will make a statement on the matter. [3255/16]
Amharc ar fhreagraThe Department received an application for Invalidity Pension (IP) from the person concerned on 20 July 2015. The person concerned was refused IP on the grounds that the medical conditions for the scheme were not satisfied. He was notified on 21 September 2015 of this decision, the reasons for it and of his right of review and appeal. The person concerned requested a review of this decision and submitted further medical evidence on 21 October 2015 in support of his request. Following a review of all the information available it has been decided that there is no change to the original decision. The person concerned was notified on 14 January 2016 of the outcome of the review.
As the person concerned has appealed the decision to the independent Social Welfare Appeals Office (SWAO), a submission has been prepared by the department and was forwarded to the SWAO on the 20 January 2016 for determination.
The SWAO will be in touch with the person in question in due course in relation to the progress of his appeal.
125. Deputy Michael McCarthy asked the Minister for Finance if he will consider a value added tax exemption of arts events on fees paid to performers who do not reside in the Republic; and if he will make a statement on the matter. [2909/16]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the promotion of, and admission to, a live theatrical or musical event is exempt from VAT if facilities for the consumption of food and drink are not available during the performance. Where facilities for the consumption of food and drink are available during the performance the second reduced rate of 9% applies.
Where a live theatrical or musical event is exempt from VAT the promoter has no entitlement to recovery VAT incurred on inputs. A promoter of a VAT-exempt event must account for VAT at the standard rate on performance fees paid to non-resident performers. This accounting for VAT is provided for in the EU VAT Directive with which Irish VAT legislation must comply so there is no scope to amend it.
126. Deputy Brian Stanley asked the Minister for Finance if he is aware that the Electricity Supply Board has continued to deduct the pension levy from members of the Electricity Supply Board pension scheme after 1 January 2016; if this is legally correct; and if he will make a statement on the matter. [2916/16]
Amharc ar fhreagraI announced in my Budget 2014 speech that the original 0.6% stamp duty levy on private pension funds introduced in 2011 to fund the Jobs Initiative would be abolished after 2014 and that levy no longer applies. I did, however introduce an additional levy on pension funds at 0.15% for 2014 and 2015. I did this to, among other things, continue to help fund the Jobs Initiative. I confirmed in my Budget 2015 speech that the additional 0.15% levy would expire at the end of last year and this has now happened. As both levies have ceased no more payments will be due in respect of them.
The chargeable persons for the pension fund levies are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans. The payment of the levies is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, are entitled, where they decide to do so, to adjust current or prospective benefits payable under a scheme to take account of the levies.
It is up to the trustees to decide whether and how the levies should be passed on and who should be impacted and to what extent, given the particular circumstances of the pension schemes for which they are responsible. While the final levy expired at the end of 2015 the manner in which the trustees choose to pass them on may entail a longer term but lesser reduction in pension payments to retired members than would have been the case if the reductions were made over the temporary period when the levies applied. This could potentially take the form of a lifetime reduction. I do not have specific information in relation to the decisions of individual trustees regarding the passing on of the levy. However, should the option of reducing scheme benefits be taken, in no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levies.
127. Deputy Dara Calleary asked the Minister for Finance to consider an application for a primary medical certificate by a person (details supplied) in County Mayo, including the circumstances surrounding his application; and if he will make a statement on the matter. [3029/16]
Amharc ar fhreagraI am advised by the Revenue Commissioners that no application has been received under the Drivers & Passengers with Disabilities Scheme from the person concerned. The person concerned should make contact with Revenue's Central Repayments Office, who will provide whatever information or assistance may be provided in respect of the query of the person concerned.
An official from my Department has contacted the Deputy's office to provide direct contact details for the Central Repayments Office.
128. Deputy Timmy Dooley asked the Minister for Finance the cost to the Exchequer of the tax saver scheme for public transport users; the number of users of the scheme and the average annual benefit to a user of the scheme in 2014 and in 2015. [3162/16]
Amharc ar fhreagraThe Travel Pass/Taxsaver scheme operates on the basis that an employer pays for the ticket on behalf of an employee, typically at the start of the year, and the payment is then deducted from the employee's emoluments over the course of the year. The incentive operates on the basis that, although such a payment out of an employee's income should be made out of after-tax income, section 118B of the Taxes Consolidation Act 1997 provides that the remuneration foregone shall be exempt from tax.
This has the effect of reducing the cost of the ticket to the employee by the amount of tax that would have been paid on the equivalent amount of income at the employee's marginal rate (the highest rate of tax at which the employee is paying tax). In this way the employee, over the course of a year, only suffers the net cost of the Travel Pass, deducted on a weekly, fortnightly or monthly basis, with the total initial cost met by his or her employer. Where an employer provides a ticket without charge to an employee, section 118(5A) of the Taxes Consolidation Act 1997 provides that there is no benefit-in-kind charge on the employee in relation to cost of the Pass.
The travel pass must be issued by an approved transport provider as defined in section 118 (5A) of the Taxes Consolidation Act 1997. However neither my Department nor Revenue maintains specific statistics in relation to either the numbers of employees availing of the scheme or the annual average benefit obtained.
129. Deputy Pearse Doherty asked the Minister for Finance following a ruling by the European Court of Justice, if he will amend the legislation to allow vehicles on loan from another jurisdiction be exempted from vehicle registration tax; and if he will make a statement on the matter. [2729/16]
Amharc ar fhreagra130. Deputy Pearse Doherty asked the Minister for Finance the legal basis on which vehicle registration tax is levied on vehicles on loan within the State from another state; how this levying is reconciled with European Union law; and if he will make a statement on the matter. [2730/16]
Amharc ar fhreagraI propose to take Questions Nos. 129 and 130 together.
I am advised by the Revenue Commissioners that the legal basis for the imposition of Vehicle Registration Tax (VRT) is Part II, Chapter IV of the Finance Act, 1992. The legal basis sets out that a person may not have an unregistered vehicle in his possession (unless he is an authorised motor dealer). The emphasis in the legislation is on the registration status of the vehicle and the question of ownership is not material. I am satisfied that the levying of the tax is compatible with the provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union.
In the Court of Justice of the European Union (CJEU) ruling referred to, Staatssecretaris van Financiën v L. A. C. van Putten (C-578/10), P. Mook (C-579/10) and G. Frank (C-580/10), the CJEU examined a situation where a tax was levied by a Member State on a loaned foreign-registered vehicle upon its first use of that Member States road network.
Irish legislation provides that a person has 7 days to make an appointment for registration and 30 days before the vehicle must be presented for registration. This gives the user a 30-day period within which an unregistered vehicle can be in use in the State. The CJEU case referred to addresses a situation where a person is required to pay the tax on first use of the vehicle on a national road network, a provision that exists in some Member States, such as the Member State in question in that case.
In contrast, the Irish system is significantly different from the first use principle considered in the case and the 30-day period provides a person with a generous amount of flexibility within which to use a vehicle before registering it or removing it from the State. The CJEU case was referred to Ireland by the European Commission in June 2013 requesting that Ireland consider the ruling. Ireland responded, raising the points set out above, and the Commission accepted Ireland's position on the issue raised.
There are no plans to introduce an exemption from VRT for vehicles on loan from other Member States.
