Written Answers Nos. 70-80
70. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Justice and Equality if and when she will conclude procedures for persons (details supplied) under the family reunification scheme; and if she will make a statement on the matter. [16635/16]
Amharc ar fhreagraI am informed by the Family Reunification Section of the Irish Naturalisation and Immigration Service of my Department that there is no record of an application for Family Reunification from the person referred to by the Deputy.
71. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Justice and Equality the status of the eligibility of a person (details supplied) under the naturalisation scheme; and if she will make a statement on the matter. [16637/16]
Amharc ar fhreagraI am advised by the Irish Naturalisation and Immigration Service (INIS) of my Department that the person concerned has made an application for a certificate of naturalisation. The processing of the application is ongoing with a view to establishing whether the conditions for naturalisation, such as good character and lawful residence are satisfied. The records show that the person's permission to reside expired on 11 April 2016. All non-EEA nationals are required to keep their permission to remain in the State up to date at all times and failure to do so may adversely affect an application for a certificate of naturalisation.
As the Deputy will appreciate, the granting of Irish citizenship through naturalisation is a privilege and an honour which confers certain rights and entitlements not only within the State but also at European Union level and it is important that appropriate procedures are in place to preserve the integrity of the process.
The Deputy may wish to note that queries in relation to the status of individual immigration cases may be made directly to INIS by e-mail using the Oireachtas Mail facility which has been established specifically for this purpose. This service enables up to date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from INIS is, in the Deputy’s view, inadequate or too long awaited.
72. Deputy Jack Chambers asked the Minister for Finance the status of the drug detector dog service; and if he will make a statement on the matter. [16383/16]
Amharc ar fhreagraI am advised by Revenue that the total number of dog units in operation in Revenue is currently 17. The dogs are trained to locate a variety of contraband including narcotics, tobacco and cash. The total number of dog units is sufficient for current day-to-day operations but is kept under constant review.
73. Deputy Jack Chambers asked the Minister for Finance the number of mobile X-ray scanners in use by customs officers in detecting drugs; if he plans to increase this number; and if he will make a statement on the matter. [16388/16]
Amharc ar fhreagraI am advised by Revenue that the total number of mobile x-ray scanners in operation by Customs Officers is currently three. Two of these are mobile container scanning systems, while the third is a mobile baggage scanner. The total number of mobile x-ray scanners is sufficient for current day-to-day operations but is kept under constant review. Revenue is currently in the process of selecting a replacement container scanner by competitive tender as the oldest container scanner is nearing the end of its service life. Revenue implements a normal replacement and upgrade strategy and continuously reviews its detection technology requirements taking account of developments in those technologies.
74. Deputy John Brady asked the Minister for Finance if a person (details supplied) who has a pension under the invalidity pension scheme can obtain a certificate under the primary medical certificate scheme so as to recoup vehicle registration tax. [16451/16]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax. The criteria to obtain a primary medical certificate to qualify for the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme are specific to the Scheme, and not related to the Invalidity Pension Scheme.
To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.
75. Deputy Martin Heydon asked the Minister for Finance his plans to assist borrowers whose loans are sold to third parties such as vulture funds; his further plans to protect the rights of borrowers; and if he will make a statement on the matter. [16417/16]
Amharc ar fhreagraThe Deputy will be aware that the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was enacted on 8 July 2015. It was introduced to fill the consumer protection gap where loans were sold by the original lender to an unregulated entity. The 2015 Act introduced a regulatory regime for a new type of entity called a 'credit servicing firm'. Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'. This ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes (such as the Consumer Protection Code, Code of Conduct on Mortgage Arrears, Code of Conduct for Business Lending to Small and Medium Enterprises and the Minimum Competency Code) issued by the Central Bank of Ireland and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which comes into operation on 1 July 2016.
Under the Act, if the firm who bought the loans from the original lender is an unregulated firm then the firm must either become regulated themselves or the loans must be serviced by a credit servicing firm who is regulated by the Central Bank.
The Central Bank is now the competent authority for the authorisation and supervision of credit servicing firms. Credit servicing firms must comply with all relevant requirements of financial services legislation, including the various codes mentioned above and Fitness and Probity Standards (including minimum competency requirements).
In addition to compliance with Central Bank codes of conduct, credit servicing firms will have to demonstrate to the Central Bank that they have:
- Robust governance and adequate resources to ensure compliance;
- Agreements with loan owners that enable the credit servicing firm to fully comply with its obligations under Irish financial services legislation; and
- Adequate and effective control of loan servicing in the State to enable Central Bank oversight.
The Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 also includes a statutory obligation on an authorised credit servicing firm not to perform any action that a regulated lender would not be allowed to do. This additional protection seeks to ensure that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale.
The Government's commitment on this issue is underlined by the Programme for a Partnership Government which provides that "To reflect the growing public concern regarding credit servicing firms and other property firms we will ask the Central Bank and the Oireachtas Committee on Housing to examine the legislation introduced last year that ensured that borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale. We will provide greater protection for mortgage holders and tenants and SMEs whose loans have been transferred to non-regulated entities ('vulture funds')." This is a Year 1 Action in the programme.
76. Deputy Pearse Doherty asked the Minister for Finance why he did not revise the predicted level of tax revenue from budget 2016 upwards, consistent with the out-turn of the stronger 2015 revenue base; the reason for his approach to the 2016 corporation tax forecast; and if he will make a statement on the matter. [16432/16]
Amharc ar fhreagraI assume the Deputy is referring to the tax revenue forecast set out in the recent Stability Programme Update. As the Deputy will be aware, it was forecast in Budget 2016 that overall tax revenues for this year would grow by 5.8 per cent to approximately €47.2 billion and were profiled on that basis. As part of its earlier preparations for the Stability Programme Update, the 2016 tax revenue forecasts were reviewed by my Department in the context of their performance against profile year-to-date.
On the basis of developments to the end of March 2016, it was decided not to revise the tax revenue forecast, as overall receipts were only 1.1 per cent (€119 million) above profile at-end Quarter 1. Income tax and VAT, which are expected to account for just over two thirds of the total take yield in 2016, were marginally below profile. Income tax finished the quarter down €153 million (3.4 per cent) and VAT was down €193 million (4.7 per cent) respectively against target.
Excise duties and corporation tax performed strongly during the first quarter of 2016, up €114 million (8.1 per cent) and €305 million (87.3 per cent) respectively against profile. However, it should be noted that the Revenue Commissioners had informed my Department that the over-performances were been driven by specific issues, some of which are expected to "unwind" as the year progresses. For example, in relation to excise duties there has been a significant front-loading of tobacco stocking in advance of the commencement of the plain packaging initiative. Meanwhile, the over-performance in corporation tax to the end of March was wholly attributable to a number of large unexpected payments from a small number of companies, which could be repaid over the course of the year.
Finally, I would point out that since the Stability Programme Update 2016, tax revenue performance has been strong and at end-May 2016, receipts were up €774 million (4.3 per cent) above profile, which represents a 9.0 per cent (€1,549 million) increase when compared to same period in 2015. This solid performance is being reviewed as part of the upcoming Summer Economic Statement 2016.
77. Deputy Pearse Doherty asked the Minister for Finance the specific estimates of the cost of planned tax reductions or of the amount of new revenue that would be raised from the planned offsetting tax changes for all relevant years, given the warnings raised by the Irish Fiscal Advisory Council regarding his taxation proposals contained in the programme for a partnership Government, whereby he commits to the continued phasing out of the universal social charge and states that this and other reductions in personal tax rates will be largely funded through higher taxes in other areas, for example through non-indexation of personal tax credits and bands, [16433/16]
Amharc ar fhreagraMy officials are currently completing work on the Summer Economic Statement to be published shortly by the Government. This Statement will reflect the tax and spending priorities set out in the Programme for a Partnership Government (PPG).
As the Deputy is aware, in the PPG there is a commitment to ask the Oireachtas to continue to phase out the USC as part of a wider medium-term income tax reform plan that keeps the tax base broad, reduces excessive tax rates for middle income earners, and limits the benefit for high earners. Reductions will be introduced on a fair basis with an emphasis on low and middle income earners.
Work on development of the medium-term income tax reform plan is ongoing and as such the expected cost is not yet finalised. It is due to be published for consultation with the Oireachtas Committee on Finance in July, and for approval by the Oireachtas in October.
The revenue to be raised by planned offsetting tax changes, such a sugar-sweetened drinks tax for example, will depend on, among other things, the rate at which the tax is set and the scope of its application. These issues are budgetary matters which will be determined through the budgetary process.
78. Deputy Pearse Doherty asked the Minister for Finance if he will release compliance figures to 2021 that reflect the reality that is incorporating his policy intentions, given the April 2015 spring economic statement in which the previous Government stated that it intended to adopt a fiscal policy stance that would meet minimum compliance with the fiscal rules and acknowledged that tax and spending projections in the stability programme update 2016 from 2017 onwards were purely technical and did not include policy changes consistent with this intention; and if he will make a statement on the matter. [16434/16]
Amharc ar fhreagra81. Deputy Pearse Doherty asked the Minister for Finance the reason for non-compliance with the budgetary frameworks directive to date and if the Government will enhance the quality of its medium-term budgetary forecasts by providing projections based on a realistic set of assumptions in line with the requirements of the directive and the requirement under the medium-term budgetary frameworks directive that budgetary forecasts also be provided on the basis of envisaged policies and hence the Government’s medium-term fiscal plans would include the major tax and spending priorities outlined in the programme for Government; and if he will make a statement on the matter. [16437/16]
Amharc ar fhreagraI propose to take Questions Nos. 78 and 81 together.
Ireland complies with the requirements of the Budgetary Frameworks Directive, which was adopted as part of the 'Six Pack' reforms of the Stability and Growth Pact in 2011. In line with these provisions, we have established a credible medium term budgetary framework that ensures our fiscal planning follows a multiannual perspective. Furthermore, as required under the 'Two Pack' reforms, our macroeconomic forecasts, which underpin both the annual budget and Stability Programme Update (SPU), are assessed and endorsed by the Irish Fiscal Advisory Council.
The Government will be publishing the Summer Economic Statement shortly. This will represent the first opportunity to publish our medium-term fiscal plans since the Government was formed. The forecasts in the Statement will reflect the tax and spending priorities set out in the Programme for Partnership Government.
The SPU submitted to the European Commission in April was completed before the formation of the current Government. For this reason, it was prepared on a purely technical no-policy change basis. This is the accepted practice in circumstances where elections are underway or governments remain to be formed in post election circumstances. Accordingly, prior to the formation of the current Government, there were no policy decisions in place on the use of the fiscal space for the coming years. As the use of the fiscal space, for example on expenditure, tax reductions or improving the general government balance, has major impacts on multiannual forecasts, it could not be reflected in the SPU projections.
79. Deputy Pearse Doherty asked the Minister for Finance his views that under the stability programme update projections the debt-to-gross domestic product ratio is projected to fall to 69% of gross domestic product by 2021, but assuming a policy of minimum rule compliance as previously committed to is implemented from 2017 on, the debt ratio would continue to decline but would be around five percentage points of gross domestic product higher by 2021; and if he will make a statement on the matter. [16435/16]
Amharc ar fhreagraThe Government will shortly be publishing the Summer Economic Statement. This will reflect the tax and spending priorities set out in the Programme for Partnership Government.
The statement will reflect information on debt-to-gross domestic product ratio taking into account second round macro-economic and fiscal effects.
80. Deputy Pearse Doherty asked the Minister for Finance if he has conducted a risk analysis of the concentration of corporation tax receipts having risen sharply in recent years, with over 40% paid by ten companies in 2015, up from 21% in 2009 and that in 2015 corporation tax from the top ten companies amounted to over 6% of total tax revenue, approximately the same proportion of total tax revenue accounted for by stamp duty in 2007; and if he will make a statement on the matter. [16436/16]
Amharc ar fhreagraThe concentration risk regarding corporation tax receipts was examined as part of the Economic Impact Assessment of Ireland's Corporation Tax Policy, a significant piece of research that was commissioned and undertaken by my Department over the course of 2014, resulting in the publication of eight reports as part of Budget 2015.
Included in this research was the report Note on the Context and Concentration of Corporation Tax Receipts, which quantified the fiscal contribution of the corporate sector to the Irish Exchequer in terms of Corporation Tax receipts. This analysis confirmed that since 2008 corporation tax payments have been heavily concentrated among large companies, particularly multi-nationals, and that this concentration has increased over time, demonstrating that the exporting multinational sector performed better during the recession than the domestic sector and SMEs generally. The overall policy conclusions reflected on the concentrated level of Corporation Tax receipts in general and how this creates a policy challenge in Ireland.
Another more recent example of is in Budget 2016, where my Department highlighted the risks that underpin the concentration of Corporation Tax receipts. This time, the risks specifically related to the forecasting of Corporation Tax receipts, and noted that company specific factors could have large implications for the overall Corporation Tax yield.
On the most recent increase in Corporation Tax receipts, the Revenue Commissioners recently undertook and published their analysis, which can be viewed at the following link: http://www.revenue.ie/en/about/publications/corporation-tax-receipts-2014-2015.pdf.
