Written Answers Nos. 229-241^
229. Deputy Clare Daly asked the Minister for Finance his views on the fact that the Revenue Commissioners state they will process Med 1 applications submitted online in five days, but that applications submitted via post will take 20 days to process, which puts persons without Internet access, or those who are not computer literate, at a major disadvantage; and if he will make a statement on the matter. [10090/17]
Amharc ar fhreagraI am advised by Revenue that they are committed to processing all paper health expenses claims (Med 1 form) within 20 working days. This is set out in their Customer Service Standards published on their website.
Taxpayers are, however, encouraged to self manage their tax affairs using the suite of online facilities provided by Revenue. This includes the submission of health expenses claims using the online facilities as the quickest, most secure and most efficient way to get a refund of tax to which the taxpayer may be entitled. It is possible to provide a quicker service for taxpayers using the online services as it involves, in many cases, a fully automated processing service requiring no intervention by a Revenue official. Paper forms, on the other hand, need to be dealt with by a Revenue official and therefore take longer to process.
I am aware that Revenue has made and continues to make a significant investment in, and improvements to, their online service offering, to make it even easier for taxpayers to do their business online. They are now designing their systems to ensure that taxpayers with limited computer knowledge can use their systems.
Revenue fully appreciates, however, that not all taxpayers will be able to, or wish to, conduct their business online and it continues to process paper based transactions from such taxpayers, albeit that the processing time will be longer than for online transactions.
230. Deputy Niall Collins asked the Minister for Finance the cost of implementing a living wage of €11.50 per hour for all employees directly employed or in agencies funded by his Department; and if he will make a statement on the matter. [10100/17]
Amharc ar fhreagraI wish to inform the Deputy that the cost of implementing a living wage of €11.50 per hour for all employees directly employed by my Department would be €55,816.42 annually.
With regard to the cost of implementing a living wage of €11.50 per hour for all employees in agencies funded by my Department, the Disabled Drivers Medical Board of Appeal is the only body funded by my Department and there would be no additional cost to that organisation if they implemented a living wage of €11.50 per hour for all employees.
231. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he continues to garner support for Ireland's position in the context of Brexit negotiations with particular reference to the need to maintain the concept of a borderless economy. [8702/17]
Amharc ar fhreagraThe Government priorities for the Brexit negotiations are clear: minimising the impact on trade and the economy, protecting the Northern Ireland Peace Process, maintaining the Common Travel Area, and influencing the future of the European Union. A programme of intense engagement at political and official level is continuing to ensuring that our priorities are heard and understood across Europe, and that the EU's position for the forthcoming negotiations reflects our priorities.
The Government's position in relation to the border with Northern Ireland has been articulated by the Taoiseach on several occasions. Any manifestation of a hard border would have very negative consequences for our country.
232. Deputy Noel Rock asked the Minister for Finance his views on the European Commission’s raised forecast of GDP growth of the economy of 3.4%; and if he will make a statement on the matter. [10159/17]
Amharc ar fhreagraThe European Commission's 2017 Winter economic forecast was published on 13 February. The Commission is forecasting GDP growth for Ireland of 3.4 per cent this year, a downward revision of 0.2 percentage points relative to Autumn 2016. This is broadly in line with my own Department's forecast of 3.5 per cent growth this year, published as part of Budget 2017. According to these forecasts Ireland is expected to be among the fastest growing economies in Europe this year.
The dataflow since the Budget has been encouraging indicating that the strong momentum has continued:
- The economy expanded by 6.9 per cent year-on-year in the first three quarters of 2016.
- Exports are holding up well. Service exports have been particularly strong recording double-digit growth, year-on-year, in the third quarter.
- Employment in the fourth quarter of 2016 grew by 3.3 per cent on an annual basis - an increase of over 65,000 jobs.
- Data for 2017 is likewise encouraging with the unemployment rate for January falling to 6.8 per cent, down from 8.6 per cent a year earlier.
On this basis, the economy remains on course for continued robust growth this year. However, we do face considerable economic challenges, notably Brexit, the change in policy direction by the new US administration, and growing uncertainty in the global economy. This was explicitly recognised in the economic outlook published with the Budget, which detailed risks to the outlook and noted that these are firmly tilted to the downside.
Updated macroeconomic forecasts will be published by my Department, as part of the Stability and Programme Update, in April this year.
233. Deputy Dara Calleary asked the Minister for Finance if recourse is available to a company which made an unsuccessful bid to a receiver on behalf of a bank for a distressed commercial property which was higher than that of the accepted bid; if this kind of practice is encouraged by his Department; and if he will make a statement on the matter. [10219/17]
Amharc ar fhreagraIt is not clear what the circumstances of this case are or why a decision was taken to accept a lower bid. Such a decision can be made for valid commercial reasons. If any unlawful steps have been taken the appropriate avenue for recourse would be through the Courts. Primary legislative responsibility in this area would rest with my colleague the Minister for Justice and Equality.
234. Deputy Michael McGrath asked the Minister for Finance the reason a credit union (details supplied) has not been allowed by the Central Bank to hold an AGM since 2012; the number of credit unions that have had their AGMs delayed for more than nine months; and if he will make a statement on the matter. [10226/17]
Amharc ar fhreagraThe Central Bank of Ireland is responsible for the regulation of credit unions registered under the Credit Union Act, 1997 (as amended) (1997 Act).
The Central Bank is subject to strict confidentiality requirements and cannot comment on individual credit unions.
In relation to the holding of an Annual General Meeting (AGM) in accordance with Section 78(2) of the 1997 Act, the Central Bank informs me that it works closely with credit unions on a case by case basis to resolve any regulatory issues arising before a credit union can hold its AGM. In this regard members should seek information from their individual credit union regarding the proposed timing of their AGM.
Under section 78(4) of the 1997 Act the Central Bank may direct a credit union to postpone, for a period not exceeding nine months, the holding of the annual general meeting of a credit union. The Central Bank states that any actions taken by the Central Bank are taken in the interests of credit union members and protecting their savings and in the interests of the orderly and proper regulation of the business of a credit union in line with its statutory mandate.
The Central Bank further informs me that at present, less than 5% of all active credit unions have had their AGMs delayed for more than nine months. The Central Bank is working closely with each one of these credit unions to address any regulatory issues in advance of their AGMs being held.
235. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has plans to investigate if customers with business loans were wrongly denied their contractual right to return to a tracker rate following a period on a fixed rate or have not been put on the correct tracker rate; and if he will make a statement on the matter. [10227/17]
Amharc ar fhreagra243. Deputy Michael McGrath asked the Minister for Finance the exact scope of the Central Bank tracker mortgage examination which is ongoing. [10369/17]
Amharc ar fhreagra244. Deputy Michael McGrath asked the Minister for Finance the number of affected customers and the number of those who have had the correct tracker rate reinstated for each bank, with regard to the ongoing Central Bank tracker examination; and if he will make a statement on the matter. [10370/17]
Amharc ar fhreagraI propose to take Questions Nos. 235, 243 and 244 together.
The Tracker Mortgage Examination is the most significant supervisory review undertaken in the context of the Central Bank's consumer protection remit. In line with the Bank's mandate to ensure that the best interests of consumers are protected, the Central Bank's immediate focus is to ensure that lenders prioritise the identification of impacted customers and prevent further harm.
The scope of the Tracker Mortgage Examination covers all lenders which sold tracker mortgage accounts, including both for the family home and investment properties, up to the end of 2015:
- that originated on tracker interest rates;
- that had tracker interest rates applied at any stage during the term of the underlying mortgage agreements and-or
- where the underlying mortgage agreements provided for contractual rights to or options for tracker interest rates at any stage during the term of the agreements.
All tracker mortgage accounts that fall within this scope are covered by the Examination.
The Examination is a key priority for the Central Bank and it is working to ensure that the Examination is completed as soon as possible. While significant progress has been made, the Central Bank advises that due to the scale and complexity of the review, it will take some further time to complete.
In December the Central Bank issued a statement which indicated that so far lenders had identified approximately 8,200 accounts where a right to, or the option of, a tracker rate of interest and/or the correct rate of interest was not provided to customers in accordance with lenders' contractual or regulatory requirements. In his subsequent appearance before the Joint Oireachtas Committee, the Governor indicated that this is a lower band figure and that it is expected the number of affected cases will be higher.
Based on current progress, the Central Bank expects that all relevant lenders will have identified and commenced engagement with most impacted customers by mid-2017. Payment of redress and compensation, processing and consideration of any customer appeals and the Central Bank's own assurance work will continue beyond this point for some lenders.
The Central Bank has set down a robust framework whereby lenders' internal reviews will be overseen by independent third parties. As part of the Examination, the Central Bank has made very clear what it expects of lenders in terms of redress and compensation to impacted customers.
236. Deputy Eoin Ó Broin asked the Minister for Finance the tax that hosts of a company (details supplied) are liable for; and the differences between the tax relief measures available to landlords and the tax relief measures available to these hosts. [10250/17]
Amharc ar fhreagraIndividuals who provide short-term guest accommodation organised through platforms such as the company in question are liable to income tax, USC and PRSI in the normal manner on the profits arising from the provision of such accommodation.
Where the services are provided on an occasional basis, as distinct from in the course of a trade, the income arising is treated as miscellaneous income and expenses incurred directly in the provision of the accommodation, for example the cost of providing meals, light, heat or laundering costs, would be allowed to be deducted in computing the homeowner's taxable profits from that activity. An individual who provides the services in the course of a trade can avail of the normal trading deductions in computing his or her taxable profits.
In relation to rental income arising to landlords, I am advised that the taxable income is the gross rent less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act (TCA) 1997. The main deductible expenses are:
- any rent payable by the landlord in the case of a sub-lease;
- the cost to the landlord of any goods provided or services rendered to a tenant;
- the cost of maintenance, repairs, insurance and management of the property;
- the interest on borrowed money used to purchase, improve or repair the property, which, in the case of residential property, is restricted to 80% of the interest and is subject to compliance with Private Residential Tenancies Board registration requirements for all tenancies that existed in relation to the property in the relevant year (full interest deductibility is being restored incrementally by way of annual 5% increases, with full restoration by 2021). The restriction does not apply to certain lettings to tenants in receipt of social housing supports; and
- the payment of local authority rates.
In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.
As is the case with profits earned by hosts, rental profits arising to landlords who are individuals are subject to income tax, USC and PRSI in the normal manner.
237. Deputy Catherine Murphy asked the Minister for Finance further to Parliamentary Question No. 60 of 26 January 2017 his views on whether the ECB could clarify more clearly its policy of Article 28 Council Regulation (EU) No 1024/2013, in particular, if a member of the ECB commits a criminal offence the circumstances in which the ECB could rely on Article 28 Council Regulation (EU) No 1024/2013 to dismiss an investigation; and if he will make a statement on the matter. [10262/17]
Amharc ar fhreagraAs I outlined in my previous response to the Deputy last month in relation to this matter the Single Supervisory Mechanism (SSM) has ultimate responsibility for supervision of the banking sector. The SSM is comprised of the ECB and the national competent authorities (NCAs) of participating Member States. The Irish national competent authority is the Central Bank of Ireland. Since 4 November 2014, the SSM has been responsible for the prudential supervision of all significant credit institutions in the participating Member States, which includes Ireland. The Central Bank of Ireland remains responsible for the supervision of activities of those institutions defined as less significant institutions.
The Council Regulation article that the deputy refers to gives some details of supervisory activities to be carried out at an ECB level and activities that rest with the national competent authorities.
The SSM has wide-ranging supervisory and enforcement powers in relation to credit institutions. It is solely a matter for the SSM as to how these powers are exercised. If the Deputy has information that these powers may have been exercised improperly or suspects a breach of relevant European Union law, these should be reported to the Central Bank of Ireland as the national competent authority.
Further information can be found here: www.centralbank.ie/regulation/industry-sectors/credit-institutions/Pages/default.aspx
238. Deputy Thomas Byrne asked the Minister for Finance if the first-time buyers grant can be used to contribute towards a required deposit; and the mechanism in place to ensure it can be available for this purpose at contract stage. [10263/17]
Amharc ar fhreagraI assume the Deputy is referring to the Help to Buy incentive which was initially announced on 19 July 2016 as part of 'Rebuilding Ireland: Action Plan for Housing and Homelessness' and was legislated for in Finance Act 2016. The initiative aims to assist a first-time purchaser to fund the deposit required to purchase or self-build a new property to serve as their principal primary residence . The scheme is open to both those who are purchasing new builds from a developer, and those who self-build.
The application process for the Help to Buy incentive varies depending on the relevant property type. For new builds purchased on or after 1 January 2017, which meet the requirements of the scheme, the appropriate rebate is payable directly to the developer once the contract to purchase the property has been entered into. In this manner it forms part of the 10% deposit that is usually paid to the developer by the purchaser.
For applicants who are undertaking to self-build a property and who draw down the first tranche of their qualifying loan on or after 1 January 2017, the refund is paid to the claimant's bank account following such draw down. The information supplied by the claimant must be verified by the claimant's solicitor before any refund is paid.
There is also a third category of claimants under the Help to Buy incentive, known as retrospective claimants. This comprises individuals who have contracted to purchase a new build home, or who have drawn down the first tranche of their qualifying loan to self-build a home, in the period between 19 July 2016 and 31 December 2016. As these individuals would have already paid their deposits/commenced building prior to the commencement of the incentive, any potential rebate they are due under the scheme will be paid retrospectively directly to them. Retrospective claimants are required to submit supporting documentation including a signed copy of the contract, evidence of their mortgage or mortgage drawdown, and details of the property directly to Revenue.
239. Deputy Ruth Coppinger asked the Minister for Finance the way in which the local property tax, LPT, for a property (details supplied) in Dublin 15 was calculated for the years 2012 to 2017. [10283/17]
Amharc ar fhreagraLocal Property Tax (LPT) is a self-assessed tax, which places the onus on the property owner to calculate the tax due based on his or her calculation of the market value of the property.
The person in question filed the statutory LPT return in 2013 confirming the value of the property to be in Valuation Band 2. The person also claimed an exemption from LPT on the basis of pyritic damage to the property. Supporting documentation subsequently confirmed that the property was remediated prior to the commencement of LPT and on that basis did not qualify for the exemption. This left Revenue with no option but to withdraw the exemption and seek to collect the LPT liabilities for the years 2013 to 2017 inclusive.
Based on a Band 2 valuation the total LPT liability in respect of the property now stands at €910. The outstanding amount includes €112 for 2013, €225 for 2014 and €191 for 2015, 2016 and 2017, respectively. The lesser liabilities for 2015, 2016 and 2017 take account of rate reductions by the relevant Local Authority.
Revenue has confirmed that it has already had a number of discussions with the individual concerned in regard to the outstanding liabilities and has assured me that it is happy to work with her to agree a mutually acceptable payment solution.
240. Deputy Jim Daly asked the Minister for Finance his plans to amend legislation to reflect the European Commission's decision that a foreign vehicle, if not intended to be used in the member state on a permanent basis, should be exempt from vehicle registration tax under the free movement of capital; and if he will make a statement on the matter. [10314/17]
Amharc ar fhreagraThe requirement to register a vehicle is provided for in Part II, Chapter IV of the Finance Act 1992. This legislation provides that unregistered vehicles may only be held by authorised persons (usually motor dealers) or where the vehicle is the subject of an exemption and provides for a range of offences and penalties including fines and forfeiture of the vehicle. Where a person imports an unregistered vehicle into the State, it is a legal requirement that the vehicle is registered within 30 days. Other than in these circumstances, possession or use of a vehicle that has not been registered in the State is not permitted.
The Deputy should be aware that an effective system of registration is essential for a variety of reasons, including insurance of vehicles, roadworthiness checks, motor taxation and enforcement of the law in relation to motoring offences.
I am aware of the relevant Court of Justice of the European Union Judgments in these matters and I am satisfied that none of the Judgments impact our existing legislation concerning registration of vehicles.
I have no plans to amend the legislation in this regard.
241. Deputy Michael McGrath asked the Minister for Finance if public private partnership, PPP, unitary payments for potential infrastructure projects, in addition to those funded under the CIP 2016-2021, that are undertaken under the European Fund for Strategic Investments, may not be counted towards the deficit reference values when defining the fiscal adjustment under either the preventive or the corrective arm of the fiscal pact and that in the case of such a PPP unitary payment causing the Exchequer to run an excess over the deficit reference value, the Commission will not launch an excessive deficit procedure, EDP, if this excess is only due to a contribution made to a project co-financed under the EFSI, according to a European Commission communication (details supplied). [10322/17]
Amharc ar fhreagraThe Deputy refers to unitary payments towards PPPS undertaken under the European Fund for Strategic Investments (EFSI) and to contributions to a project co-financed by EFSI. These are not the same thing.
Public Private Partnership (PPP) unitary payments for infrastructure projects, including those co-financed under EFSI constitutes general government expenditure and are relevant for the calculation of the general government balance and the assessment of compliance with Stability and Growth Pact (SGP) obligations.
With regard to contributions to EFSI, the European Commission communication referenced by the Deputy provides clarification on the treatment of these, debt guarantees and co-financing by Member States under the fiscal rules.
The communication makes the point that the fiscal adjustment required under the preventive arm of the SGP, until the medium-term budgetary objective is attained, is set in structural terms. This excludes one-off measures in addition to taking account of the economic cycle. The communication states that cash contributions provided by Member States to EFSI will be counted as one-off measures and excluded from the structural balance calculation, even if the payments in question were classified as general government expenditure. The communication notes that the classification of transactions is a matter for Eurostat.
Guarantees provided by Member States to EFSI do not impact on deficit or debt unless a guarantee is called, at which time it would impact on both the general government balance and debt.
In terms of co-financing individual projects, equity participation will have no impact on deficit or debt as long as there is a market rate of return. The equity may impact on debt levels if financed through government borrowing.
Since inception, Ireland has seen the main potential beneficiaries of EFSI as being in the private sector including entities such as PPP projects. In this regard, I am pleased that the Department of Health's Primary Health Care Centres PPP has successfully drawn down EFSI funds. In addition, the Strategic Banking Corporation of Ireland (SBCI) has successfully engaged with European Financial Instruments such as the COSME and the InnovFin Guarantee Programme, both of which are made available under the EFSI SME Window. These support the financing needs of SMEs and aims to ensure that there is an adequate supply of affordable and appropriate credit to meet their needs.
As the Deputy will be aware, approval of Exchequer capital projects and PPP projects are the policy responsibility of the Minister for Public Expenditure and Reform and, in this context, he engages with each line Department on an ongoing basis to consider and assess projects and the full range of available funding options.
