Written Replies Nos. 103 to 113
103. Deputy Michael McGrath asked the Minister for Finance the reason for the substantial increase in exit tax paid on life assurance policies in recent years; and if he will make a statement on the matter. [16514/16]
Amharc ar fhreagraI am informed by Revenue that Life Assurance Exit Tax (LAET) applies to Assurance policies taken out from 1 January 2001 and is payable on the total or partial encashment of liable policies.
It is also payable on each 8-year anniversary of the inception of the policy provided the policy has not been encashed in full. As a result of this an increasing proportion of policies fall within the exit tax regime. Accordingly, it would be expected that receipts from exit tax would increase.
Additional factors contributing to a more noticeable increase in recent years are as follows:
- SSIAs were opened in the period 1 May 2001 to 30 April 2002 and matured during the period 31 May 2006 to 30 April 2007. Where funds arising from the maturity of investments in the SSIA scheme were reinvested in life assurance policies, LAET would have arisen in 2014 and 2015, being the first 8-year anniversary of such investments.
- The rate of Exit Tax has been increased over time from 23% on its introduction to 41% from 1 January 2014. The rates of tax are as follows:
|
January 2001 31 December 2008 |
23% |
|
1 January 2009 7 April 2009 |
26% |
|
8 April 2009 21 December 2010 |
28% |
|
1 January 2011 31 December 2011 |
30% |
|
1 January 2012 31 December 2012 |
33% |
|
1 January 2013 31 December 2013 |
36% |
|
On or after 1 January 2014 |
41% |
104. Deputy Michael McGrath asked the Minister for Finance the number of projects that availed of section 481 film tax relief; the number of jobs supported by the relief in 2015 and in 2016 to date; and if he will make a statement on the matter. [16515/16]
Amharc ar fhreagraThe Deputy will appreciate that film projects do not begin and end to coincide with calendar years, which means it is difficult to provide definitive figures for the number of jobs that the relief supported for any particular calendar year.
Nevertheless, I am advised by the Revenue Commissioners that applications for relief were received in respect of 119 projects during the calendar years 2015 and 2016 and the following is based on an analysis by the Revenue Commissioners of the information accompanying those applications:
|
Year |
No. of Projects |
Jobs |
|
2015 |
73 |
1,257* |
|
2016 |
46 |
** |
* Budgeted full time equivalent jobs directly related to the production of the film.
** This information is not yet available.
105. Deputy Niall Collins asked the Minister for Finance the process regarding reports that an organisation (details supplied) received a loan from the Irish Strategic Investment Fund in November 2015, whose subsidiary was previously involved in transactions relating to the closure of a company in June 2015; and if he will make a statement on the matter. [16543/16]
Amharc ar fhreagraThe NTMA informs me that the Ireland Strategic Investment Fund (ISIF) did not participate in the financing of the Clerys department store transaction.
In November 2015, some five months after the closure of Clerys department store, the ISIF announced that it and institutional clients of Quadrant, a US-based real estate investment manager, had committed up to €100 million to finance high-quality office development and construction projects in Ireland. This investment aims to accelerate the delivery of urgently required prime office space, thereby improving the attractiveness of Ireland to potential foreign direct investment (FDI).
The ISIF was and remains satisfied that Quadrant is a reputable investment manager, acting in a fiduciary capacity, with a strong track record. ISIF has built into its investment management contract with Quadrant strong protections against any involvement of ISIF in events similar to those referred to in recent media reports regarding the Clerys transaction.
In its role as a lender to the developers, Quadrant acts in a purely financing capacity and does not have day-to-day involvement in the projects that it finances.
106. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding mortgage interest; and if he will make a statement on the matter. [16549/16]
Amharc ar fhreagraSection 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. Any mortgage account which is currently in receipt of mortgage interest relief (MIR) will continue to be entitled to the relief up to 31 December 2017. The amount of relief payable is based on the amount of interest actually paid by the borrower, subject to the ceilings and rates applicable to the loan.
While it is not possible to definitively identify the person mentioned in the Deputy's Question, it would appear that he should be entitled to the relief until December 2017 assuming that he continues to pay the interest amount due on the mortgage.
The Deputy will also be aware that in the Programme for a Partnership Government there is a commitment to retain mortgage interest relief beyond the current end date on a tapered basis. I note that the current end date is December 2017 and I will consider the future of mortgage interest relief in due course.
107. Deputy Michael McGrath asked the Minister for Finance the amount insurance companies reported to the Central Bank as having been paid out on motor insurance claims and the number of claims the payouts related to in each of the years 2011 to 2015; and if he will make a statement on the matter. [16575/16]
Amharc ar fhreagraI am informed by the Central Bank of Ireland that the total amount reported by insurance companies to the Central Bank, as having been paid out on motor insurance claims for each of the years 2011 to 2014 are outlined in the following table.
Information reported to the Central Bank is published annually in the Insurance Statistical Review and this is available in the Publications section of the Central Bank's website.
The figures relating to 2015 were required to be submitted by end-April 2016 and are being compiled for publication in the third quarter of 2016.
|
Year |
Total Motor Liability Claims Paid |
|
2011 |
€1,573,462,000 |
|
2012 |
€1,069,454,000 |
|
2013 |
€987,523,000 |
|
2014 |
€1,014,532,000 |
|
Total 2011-2014 |
€4,644,971,000 |
The Central Bank has also informed me that it does not publish the number of claims that the total pay-outs relate to.
108. Deputy Seamus Healy asked the Minister for Finance if he will recommend that small shareholders be compensated at least to the extent of the entitlement of depositors under the bank deposit guarantee scheme given the conviction of two former executives of Anglo Irish Bank on a charge of conspiring to defraud investors, the fact that the office of the financial regulator was aware of the relevant transaction in advance of the publication of the misleading accounts of the bank and the other evidence and remarks of the judge in court (details supplied); and if he will make a statement on the matter. [16592/16]
Amharc ar fhreagraAnglo Irish Bank was nationalised on 15 January 2009 and on that date the Minister for Finance acquired all of the ordinary and preference share capital by virtue of the provisions of the Anglo Irish Bank Act 2009. Therefore, as of that date, the ownership of the shares in Anglo Irish Bank would have transferred to the Minister for Finance. If the Government had not nationalised Anglo Irish Bank, the Bank had the potential to collapse and impact on the entire Irish banking system. At that time, shares were valued on the market in the region of €0.22; however in the event of the bank failing, Anglo Irish Bank shares would have been worthless. Sections 22-32 of the Anglo Irish Bank Corporation Act 2009 provide that the Minister for Finance shall appoint an Assessor at an appropriate time having regard to the public interest. The job of the Assessor is to independently determine the fair and reasonable aggregate value, if any, of the transferred shares and extinguished rights and the consequent amount of compensation, if any, that may be payable to persons in respect of Anglo Irish Bank shares transferred and rights extinguished under the Act. Since the liquidation of IBRC in February 2013, there has been no timeframe set for the appointment of an Assessor. An update on the liquidation of IBRC can be found at http://www.finance.gov.ie/sites/default/files/Progress%20update%20report_31%20Dec%202015_0.pdf.
The Deposit Guarantee Scheme ("DGS") was established to protect depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits. The DGS is part of the Central Bank of Ireland s strategy to ensure that the best interests of consumers of financial services are protected. The DGS is administered by the Central Bank of Ireland and is funded by the credit institutions covered by the scheme. The DGS was not established to protect equity investors.
109. Deputy Peadar Tóibín asked the Minister for Finance the properties his Department and the agencies under its remit leased; the number leased on upward-only rents and the number of the lessors who were involved with the National Asset Management Agency or with any of the State banks; and the details of each lease. [16600/16]
Amharc ar fhreagraIn response to the Deputy's question, I am advised that the Department of Finance has no such lease arrangements in place.
In relation to properties leased by bodies under the aegis of my Department, the relevant bodies have provided information on the numbers leased on upward-only rents, the number of lessors who were involved with the National Asset Management Agency or with the State banks and the details of each lease. This information is set out in tabular form for the Deputy.
|
Name of Body |
Properties leased |
Number leased on upward only rents |
Number of leasers involved with NAMA or State Banks |
Details of lease |
|
Tax Appeals Commission |
Nil |
n/a |
n/a |
n/a |
|
Comptroller and Auditor General |
Nil |
n/a |
n/a |
n/a |
|
Central Bank |
Block D, Iveagh Court, Harcourt Road, Dublin 2. |
Nil |
Nil |
Iveagh Court: Office accommodation over 5 floors. Lease held: 8 November 2010 to 8 May 2017. Current rent payable to landlord Cedar Real Estate Investments Plc is €2.65m per annum (ex VAT). |
|
Credit Review Office |
Nil |
n/a |
n/a |
n/a |
|
Credit Union Advisory Committee |
Nil |
n/a |
n/a |
n/a |
|
Credit Union Restructuring Board |
2nd Floor, IPC House, 35-39 Shelbourne Road, Dublin 4. |
Nil |
Nil |
Sub-lease with the Law Reform Commission spanning 3 year period from March 2014 to March 2017. |
|
Disabled Drivers Medical Board of Appeal |
Nil |
n/a |
n/a |
n/a |
|
Financial Services Ombudsman Bureau |
3rd Floor, Lincoln House, Lincoln Place, Dublin 2. |
1 |
Nil |
Lease held: 18th April 2006 for 20 year term. 5 yearly rent reviews. Landlord: Hibernian Life and Pensions Ltd. |
|
Financial Services Ombudsman Council |
Financial Services Ombudsman Bureau offices used for secretariat and meeting purposes. |
n/a |
n/a |
n/a |
|
Investor Compensation Company Ltd |
Nil |
n/a |
n/a |
n/a |
|
Irish Bank Resolution Corporation (IBRC in Special Liquidation) |
Floors 1 and 2, Joshua Dawson House, Dawson Street, Dublin 2, together with 12 car park spaces. Part of 2nd Floor Kings Building, Church Street, Dublin 7. |
No reference to upwards only rent in the licence agreement. No reference to upwards only rent in the licence agreement. |
The special liquidators have advised that they are not in receipt of this information as, in the normal course of business, it would not be made available to a lessee. |
Licence Agreement: 22nd May 2015 to 1st September 2016 with Kleinwort Benson Investors Dublin Limited. The property is owned by Dublin City Council. Sub lease: 1st June 2016 for 2.5 years with Workday Limited. The property is owned by Smithfield Property Development Limited. |
|
Irish Financial Service Appeals Tribunal |
Nil |
n/a |
n/a |
n/a |
|
Irish Fiscal Advisory Council |
Accommodation space from the ESRI (within the ESRI Building) |
n/a |
n/a |
Accommodation space is leased from the ESRI. An administration fee is paid to the ESRI which includes a charge for the accommodation and building service on a pro rata basis. |
|
National Asset Management Agency (The Board) |
1st Floor, Treasury Building, Grand Canal Street, Dublin 2. 1st Floor Annexe, Treasury Building, Grand Canal Street. 3rd Floor, Treasury Building, Grand Canal Street. |
1 |
Nil |
As outlined in the NAMA Annual Report & Financial Statements 2015 (Note 10.7 of the Financial Statements): The Agency has leased the third floor of its current office premises since 2010 for a period of ten years at an annual rent of €1.0m, and the first floor of its current offices premises since 2014 for a period of 15 years at an annual rent of €0.8m and the first floor annexe of its current offices premises for a period of 12 years and 4 months at an annual rent of €0.1m since 2013. One of the three leases is on an upward only rent basis; the other two are reviewed to open market value. |
|
National Treasury Management Agency |
Office accommodation at Treasury Building, Grand Canal Street, Dublin 2. |
1 |
Nil |
In 1991, 2007 and 2012, the NTMA entered into lease agreements of varying duration until 2017, 2026 and 2027, in respect of office accommodation at Treasury Building. The gross annual rental cost under these operating leases is €2.8 million excluding a reverse premium of €0.5 million per annum. |
|
Office of the Revenue Commissioners |
Nil |
n/a |
n/a |
n/a |
|
Social Finance Foundation |
Nil |
n/a |
n/a |
n/a |
|
Strategic Banking Corporation of Ireland. |
Nil |
n/a |
n/a |
n/a. |
110. Deputy Shane Cassells asked the Minister for Education and Skills to alleviate the hardship and social exclusion experienced by persons over 25 years of age and those in the one-parent family payment scheme who cannot afford to participate in education and training as they receive just €4 per week in subsistence payments while participating in courses under the local training initiative and under the auspices of the Education and Training Boards; and if he will make a statement on the matter. [16532/16]
Amharc ar fhreagraLearners who are in receipt of One Parent Family or Disability payment continue to receive these payments from the Department of Social Protection while participating in certain education and training programmes, including the Local Training Initiative. Learners who were in receipt of Job Seekers Benefit or Job Seekers Allowance receive a training allowance in lieu of their Department of Social Protection payment for the duration of their course.
They are also eligible for meal and travel allowances and for childcare support under the Childcare in Education and Training Scheme which is operated by the Department of Children and Youth Affairs.
The meal allowance is €4 per week and the travel allowance is as follows:
3-5 miles, €4.605; 10 miles, €11.90; 10-20 miles, €17.60; 20-30 miles, €21.60; 30-40 miles, €27.70; 40-50 miles, €32.60
Under the Childcare in Education and Training Scheme learners on a full time course pay €25 per week towards the cost of childcare and the remainder is funded by the Department of Children and Youth Affairs.
There are no plans at this stage to review the payment arrangements on these programmes.
111. Deputy Bernard J. Durkan asked the Minister for Education and Skills if he has received submissions in respect of the closure of an after-school care service (details supplied); if he will ensure this service remains available to students and parents, given the high number of families who utilise it; and if he will make a statement on the matter. [16398/16]
Amharc ar fhreagraIn general, school authorities have a considerable degree of autonomy in relation to how their premises are managed and utilised at local level. The use of school facilities must be approved by the school authority. In the case of the school referred to, I understand that my Department has not received submissions in respect of the closure of this particular afterschool care service.
In 2005, my Department issued a circular to Trustees, Boards of Management and Principals of Primary and Voluntary Secondary Schools (Circular Letter Prim 16/05) to encourage Trustees and Boards of Management to make their facilities available where possible for community, education and recreation purposes. This circular recognises that the decision ultimately lies with the relevant Board or Trustees and that the first priority at all times should be the interest of the school, its teachers and pupils.
As you may be aware, there are key commitments in the Programme for a Partnership Government (May 2016) in relation to encouraging the use of school buildings in this respect. The Programme includes commitments assigned to the Department of Education and Skills and the Department of Children and Youth Affairs relating to improving the range and quality of options for parents for afterschool care for school-age children. We have undertaken to consider how to facilitate schools who wish to make their facilities available as part of the range of options available to parents where there is demand.
The two Departments now propose to build on their existing collaborative partnership to deliver those commitments in a coherent way and to align relevant bodies of work under their respective areas of responsibility. The two Departments will develop a joint proposal for my consideration and the consideration of my colleague in government, Minister Zappone, T.D, within 100 days. A cross-departmental group is meeting regularly to assess the following, using existing and new material and consulting with partners as appropriate:
- Capacity and demand for services
- Children's views on afterschool care
- An appropriate quality and standards framework
- The development of criteria for the capital scheme to be funded by DCYA under Budget 2016
- Estimated existing use of school buildings
- Collaborative models with existing community/private service providers
- Potential funding incentives for provision of services.
112. Deputy Fergus O'Dowd asked the Minister for Education and Skills if he will introduce standards for all primary teachers equivalent to the standards that currently apply to post-primary teachers on their probation year; and if he will make a statement on the matter. [16400/16]
Amharc ar fhreagra113. Deputy Fergus O'Dowd asked the Minister for Education and Skills if newly qualified Irish primary teachers can complete their probation year in other jurisdictions of comparable educational standards, as they can currently do in the United Kingdom; and if he will make a statement on the matter. [16401/16]
Amharc ar fhreagraI propose to take Questions Nos. 112 and 113 together.
The Teaching Council is the statutory body with responsibility for professional standards at all stages of the teaching career. In that context, it has established standards for post-qualification professional practice, as set out in, Droichead, the new model of induction for newly qualified primary and post-primary teachers. The model ensures that the same standards and requirements apply to all teachers who have gained conditional registration with the Teaching Council. The Droichead model was the subject of a three-year pilot, which is now completed. The growth and development phase of Droichead will commence in September 2016 and by 2018 the Droichead model will be available to all newly qualified teachers to enable them to gain full registration with the Teaching Council.
The Teaching Council determines the conditions under which probation of newly qualified teachers may complete probation. Currently the Council reviews probation in other jurisdictions on an individual on a case basis, taking account of comparability of standards, EU directives and regulations with a view to satisfying full registration requirements.
