Written Answers Nos. 213-230
213. Deputy Eamon Ryan asked the Tánaiste and Minister for Justice and Equality the number of persons who agreed to voluntary repatriation under section 3 of the Immigration Act 1999 in 2016 and to date in 2017, in tabular form; if they were asylum related or non-asylum related; and if she will make a statement on the matter. [20862/17]
Amharc ar fhreagraThe Irish Naturalisation and Immigration Service (INIS) of my Department, in conjunction with the International Organisation for Migration (IOM), offers voluntary assisted return and reintegration programmes for asylum seekers, failed asylum seekers and other illegally present migrants.
Asylum seekers or failed asylum seekers who have not had a Deportation Order made against them are returned under the Voluntary Assisted Return and Reintegration Programme (VARRP). Other illegally present migrants are returned under the Irregular Voluntary Assisted Return and Reintegration Programme (IVARRP), which is co-funded by the EU on a 75/25 basis.
Under these programmes, the flights home for such persons are paid and where required, the IOM will assist in securing travel documents and give assistance at the airport at departure and arrival. Persons availing of these programmes can apply for reintegration assistance to allow them to start up a business or enter further education or training when they are back in their country of origin. This takes the form of an 'in-kind' rather than a cash payment.
In addition to the two IOM programmes referred to above, my Department also assists people who are illegally present in the State and wish to return home voluntarily by covering the cost of the flight, if necessary, and assisting in securing travel documents.
The statistical information requested by the Deputy is set-out in the tables. Please note that the below are a combination of IOM and Departmental assisted.
|
Voluntary Returns 2016 Broken down by Asylum Non Asylum |
|
|
Type |
Number |
|
Non Asylum |
130 |
|
Asylum |
57 |
|
Total |
187 |
|
Voluntary Returns 2017 Broken down by Asylum Non Asylum up to and including the 31st March, 2017 |
|
|
Type |
Number |
|
Non Asylum |
25 |
|
Asylum |
8 |
|
Total |
33 |
214. Deputy Seamus Healy asked the Tánaiste and Minister for Justice and Equality if she will instruct An Garda Síochána to investigate alleged systemic fraud and to question all current and former chief executives of the 15 banks (details supplied); if no consideration of possible damage to the sale value of State-owned banks will deter the Government from insisting on a thorough criminal investigation of this matter; and if she will make a statement on the matter. [20865/17]
Amharc ar fhreagraThe Deputy will be aware that the investigation of criminal allegations is matter for An Garda Síochána and I do not have a direct role in this regard. I am advised that all criminal allegations which are brought to Garda attention are thoroughly investigated and it is not open to me, as Minister, to give directions or to intervene in relation to particular cases. The Deputy will also appreciative that a decision to bring a prosecution in any particular case is matter for independent determination by the Director of Public Prosecutions (DPP).
In relation to the Banking Sector specifically, the Deputy will appreciate that my Department does not have a regulatory role and, likewise, the consideration of the future sale value of particular banks is not an issue which comes within my remit.
However, I am advised by my colleague, the Minister for Finance, that the Central Bank has a wide range of supervisory and enforcement powers available to it, including the power to impose administrative sanctions, and it is independent in the exercise of its functions in this area. The Bank has advised that it will take appropriate supervisory action, including enforcement action against lenders and persons concerned in the management of those lenders where relevant, to ensure that fair outcomes are achieved for consumers where applicable regulatory standards are not met.
The Deputy might also be aware that in the area of tracker mortgages, the Central Bank recently issued a reprimand and imposed a fine of €4.5m on Springboard Mortgages Limited and it has indicated that two other tracker mortgage-related enforcement investigations are currently ongoing into Permanent TSB and Ulster Bank Ireland. The Central Bank also has statutory reporting obligations to An Garda Síochána, and other agencies, where it suspects a criminal offence may have been committed by a supervised entity. When it appeared before the Joint Oireachtas Committee on Finance, Public Expenditure and Reform and Taoiseach on 4 April 2017 in relation to the systems wide Tracker Mortgage Examination, the Central Bank informed the Committee that it had opened dialogue with An Garda Síochána to discuss the tracker issue. The Central Bank takes these obligations very seriously and complies with them on an on-going basis as appropriate. The Central Bank has indicated that, as its investigations proceed, it will keep matters under constant review and that, guided by the evidence, it will make reports to other statutory bodies as necessary.
215. Deputy Noel Grealish asked the Minister for Finance the amount collected in local property tax, broken down by local authority area for each of the years 2013 to 2016 and to date in 2017; and if he will make a statement on the matter. [20017/17]
Amharc ar fhreagraI am advised by Revenue that the most recently available information relating to Local Property Tax (LPT) can be found on the statistics webpage of the Revenue website at www.revenue.ie/en/about/statistics/local-property-tax.html. The information provided includes LPT collected by Local Authority for the years 2013 to 2016 and the first quarter of 2017.
216. Deputy John Curran asked the Minister for Finance if he will review the merits of a temporary targeted reduction of the rate of VAT in view of the continuing shortage of supply of new housing and continuing escalating house prices; and if he will make a statement on the matter. [20288/17]
Amharc ar fhreagraWhile most Member states apply the standard rate to construction services – on average 21.5% - Ireland already applies a 13.5% reduced rate of VAT to all construction services under a derogation from the EU VAT Directive.
Applying a lower VAT rate to the construction of new residential properties would result in different VAT rates between residential and non-residential construction services, and it would also involve having different VAT rates between the construction of new homes and repair and maintenance work on those homes. This would be very difficult to administer and could lead to accidental or fraudulent underpayments of VAT.
The ESRI reported in 2016 that any tax incentives aimed at developers are likely to have little effect on supply while other constraints are in place, such as stringent planning regulations, infrastructural constraints, and access to finance and building costs, including the impact of building regulations.
In the presence of such constraints, the introduction of any tax incentive would likely lead to a transfer of tax revenue away from the State without any significant effect on supply.
217. Deputy Jonathan O'Brien asked the Minister for Finance if he has expressed an interest in Ireland hosting the European Banking Authority if it is relocated following Brexit; and if he will make a statement on the matter. [20468/17]
Amharc ar fhreagraThe European Banking Authority is an important part of the European System of Financial Supervision that arose after the financial crisis. It is key that the EBA can continue its critical work with minimal disruption following the decision of the United Kingdom to leave the European Union.
The Government made a public declaration of interest in hosting the European Banking Authority in October of last year. We strongly believe that relocation to Dublin is the best option for the important work of the EBA and the least disruptive location for EBA staff.
The public declaration was the first stage in letting the wider financial community know that Ireland wants to be considered as a host in the relocation process. Ireland has a significant financial services sector, efficient transport links to other European capitals and the capacity to absorb the European Banking Authority’s relocation to Ireland.
Also our interest in hosting the European Banking Authority demonstrates the continued importance Ireland places in well regulated Financial Services and it has sent a signal to the global financial sector of the importance that Ireland places on the financial services sector.
The Department's role in promoting Ireland as a location of choice for the EBA is outlined in the current IFS 2020 strategy and since the declaration, Minister of State Murphy along with my officials are promoting Ireland as a location of choice for the European Banking Authority.
My officials have been engaging with relevant stakeholders in order to further progress the goal of relocating the European Banking Authority to Ireland. These engagements included meetings with the European Banking Authority and the European Commission in order to highlight the benefits of relocating the Authority to Ireland. The meetings have also sought to determine the needs of the European Banking Authority and its staff when they are moved from London. Minister of State Murphy also met with the Executive Director of the European Banking Authority earlier this year.
The ultimate decision on relocation of the European Banking Authority will be made by both the European Council and Parliament. However, I would point out that the European Commission is currently carrying out a review of the European Supervisory Authorities (of which the EBA is one). Included in this consultation is the option of merging the EBA with another authority based in Frankfurt. In addition, at the recent European Council it was stated that a procedure for deciding the location for the EBA and the European Medicines Board will be agreed in June, with the potential for a decision on their new locations in Autumn.
218. Deputy Timmy Dooley asked the Minister for Finance the cost of extending the vehicle registration tax rebate for electric vehicles until 2018 and 2020, respectively. [19140/17]
Amharc ar fhreagra219. Deputy Timmy Dooley asked the Minister for Finance the cost of extending a €2,500 vehicle registration tax rebate for hybrid vehicles until 2018 and 2020, respectively. [19141/17]
Amharc ar fhreagraI propose to take Questions Nos. 218 and 219 together.
I am informed by Revenue that the cost of the Vehicle Registration Tax (VRT) rebate for electric vehicles in 2016 was €3 million. Finance Act 2016 extended this relief to end 2021, at an estimated cost of €3 million per annum assuming no change in registration numbers.
I am further informed by Revenue that the cost of the VRT rebate for hybrid vehicles in 2016 was €6 million. Finance Act 2016 extended this relief to end 2018, at an estimated cost of €6 million per annum assuming no change in registration numbers.
220. Deputy Pearse Doherty asked the Minister for Finance the fees to date and the anticipated fees paid by a bank (details supplied) to advisers regarding the initial public offering of the company; the details of the advisers concerned and the fees each one has received; the estimated amount of final fees to be paid; and if he will make a statement on the matter. [19178/17]
Amharc ar fhreagraAs the Deputy will understand, third party supplier costs and professional service fees incurred by a bank are solely a matter for the management team of that institution, and the detail of specific supplier arrangements would be commercially sensitive information. This is notwithstanding the Relationship Framework Agreement in place between my office and each of the banks in which the State is a shareholder, which in specific circumstances may require my consultation or consent, for a large procurement.
I requested a comment from AIB concerning the deputy’s question and received the following response:
“In response to the Government’s public communications relating to a potential IPO, AIB is preparing for IPO readiness. In line with normal practice and for commercially sensitive reasons, AIB does not publicly disclose the details of contracts with individual external service providers.”
Separately, and for the avoidance of doubt only, my Department as the selling shareholder will incur fees related to a potential IPO of AIB. Fees would be payable to the selling syndicate on the completion of a successful transaction only, and would be proportional to the value of the transaction. In addition, fees are payable to legal and communications advisors, as well as our independent financial advisor. In line with the State agreements with AIB, all fees incurred by the State in relation to any capital transaction will be paid or reimbursed by the bank.
221. Deputy Pearse Doherty asked the Minister for Finance the number of investors the Government’s advisers have met to discuss the initial public offering of a bank (details supplied); and if he will make a statement on the matter. [19179/17]
Amharc ar fhreagraAs the Deputy is aware, I have not announced any sale of the State’s shares in AIB. I have indicated that an IPO (Initial Public Offering) is the optimal route to recouping value from our investment and that the earliest possible IPO window for the bank is the second quarter of 2017, with the opportunity available over the course of May, June and into July.
In December 2016, following a competitive procurement process, I announced that three firms were appointed to act as joint global co-ordinators to lead a selling syndicate in preparation for a possible AIB IPO. On the 23rd of March this year I further announced the addition of five joint bookrunners and a co-lead manager to the syndicate. The syndicate banks have been appointed until July 2018. This provides the State with optionality on the timing of any such transaction through 2017 and 2018.
The three global coordinators lead the transaction, performing most of the preparation, such as managing engagement between investors and the bank’s senior management team. The bookrunners and co-lead manager will help to ensure coverage of the broadest possible range of relevant investors both by type and geography when it comes to the marketing and sales effort.
I am advised that during March AIB’s management, facilitated by the Global Coordinators, met a significant number of investors as part of what is known as a ‘Non-deal Roadshow’. These meetings were not related to any specific sale of shares or debt, but gave investors the opportunity to get an insight into the bank’s performance and future prospects. The Non-deal Roadshow followed the publication of AIB’s 2016 results and a Capital Markets Day event, you can find link to a presentation deck and webcast video of the Capital Markets Day here: https://aib.ie/investorrelations/capital-markets-day.
My Department also has a policy of regularly meeting with Irish and international investors to discuss a broad range of issues such including our banking sector investments and the economy.
222. Deputy Pearse Doherty asked the Minister for Finance the estimated impact on Ireland's debt ratio of the 25% and 100% sale, respectively, of a bank's (details supplied) shares at current market value; and if he will make a statement on the matter. [19180/17]
Amharc ar fhreagraIt is not possible to ascribe a current market value to the States shareholding in AIB at this juncture as AIB's share price is not a reliable indicator of the bank's underlying value given the very small free float available in the market.
That said, at the end of 2016, the ISIF valued the State’s 99.9% shareholding in AIB at €11.3bn, as part of their Q4 update. It should be noted that this is not reflective of any valuation that might be achieved by the State as part of an IPO as it is an indicative ‘outside-in’ valuation based on the estimated financial position of the bank at year end 2016 and publicly available information.
The most recent official forecast of general government debt (GGD) for 2017, published in the Stability Programme Update in April 2017, was €204.6 billion, which equated to 72.9% of GDP. The impact of a 100% sale at the ISIF valuation would reduce the debt to GDP ratio by 4.0 percentage points to 68.9%. The impact of a 25% sale at the ISIF valuation would reduce the debt to GDP ratio by 1.0 percentage points to 71.9%.
As I have previously indicated, it is my view that because public indebtedness rose partly due to the recapitalisation of the banks, it is appropriate to use one-off revenue from divesting the State of its banking assets to reduce debt. A lower level of debt is not only beneficial in terms of the fiscal sustainability of the State but would also result in reduced interest payments in future years.
223. Deputy Pearse Doherty asked the Minister for Finance the bonus or incentive plans in place for a bank's (details supplied) executives or staff linked to the initial public offering of the bank; and if he will make a statement on the matter. [19181/17]
Amharc ar fhreagraThere are no bonus or incentive plans in place for AIB’s executives or staff linked to a potential IPO of AIB.
As the Deputy will be aware, the previous Government placed restrictions on such types of remuneration in the Irish banks and these remain in place.
224. Deputy John McGuinness asked the Minister for Finance if a full VAT return has been paid to a person (details supplied); and the reason for the delay in payment. [19204/17]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the most recent VAT repayment claim made by the person concerned was selected for a routine compliance appraisal. The claim was processed within Revenue’s Customer Service standards and the VAT in question has been repaid.
225. Deputy Sean Sherlock asked the Minister for Finance the engagement he has had with the American Treasury Department and the American Secretary of the Treasury on the impact of US tax reform on Irish businesses; and if an analysis has been carried out by his officials on the impact that the introduction of a border adjustment tax and the introduction of a corporate tax reform in the United States of America will have on Irish exporters. [19232/17]
Amharc ar fhreagraOn a visit to the United States last year I met the previous Secretary of the Treasury, Jack Lew, who informed me of the work that had been done at that stage on US tax reform. In February of this year, Steven Mnuchin was appointed as the new Secretary of the Treasury. On my most recent trip to Washington last month for the IMF/World Bank Spring Meetings I was able to listen to Secretary Mnuchin views on the new US administration’s plans for tax and the economy.
I am aware that there is extensive commentary on the prospects of US tax reform taking place in the near future. Proposals for US tax reform are, at this stage, just proposals. Agreement between the U.S. House of Representatives, the U.S. Senate and President Trump is needed before any changes can be introduced.
The exact implications for Ireland, and the rest of the world, will depend on the exact nature of any changes which may ultimately be agreed. The border adjustment tax is one type of reform which has been proposed by members of the U.S. House of Representatives. We are yet to see details of how a border adjustment tax would be designed and how it would operate in practice. The proposals for US tax reform announced by the White House on 26 April did not include a proposal for a border adjustment tax.
Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from. Ireland’s corporation tax regime will continue to offer long term certainty to international business. As always, we will remain alert and responsive to any changes in the global tax environment.
The Department of Finance, and our Embassy in the US, are closely tracking the debate and we continue to engage with business and others to fully understand the potential impacts of any US tax reform.
226. Deputy Sean Sherlock asked the Minister for Finance the engagement he has had with IBEC on US tax reform and the impact on Irish exporters. [19233/17]
Amharc ar fhreagraI am aware that there is extensive commentary on the prospects of US tax reform taking place in the near future. Proposals for US tax reform are, at this stage, just proposals. Agreement between the U.S. House of Representatives, the U.S. Senate and President Trump is needed before any changes can be introduced.
The exact implications for Ireland, and the rest of the world, will depend on the exact nature of any changes which may ultimately be agreed. Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from. Ireland’s corporation tax regime will continue to offer long term certainty to international business. As always, we will remain alert and responsive to any changes in the global tax environment.
I have not had any specific engagement with IBEC on US tax reform and the impact on Irish exporters. My Department, and the Irish Embassy in the US, are closely tracking the debate and we continue to engage with various stakeholders to ensure that we fully understand the potential impacts of any US reform.
227. Deputy Maurice Quinlivan asked the Minister for Finance if financial initiatives exist to assist community groups to buy defibrillators for local areas; if not, if he will consider introducing such a scheme; and if he will make a statement on the matter. [19241/17]
Amharc ar fhreagra228. Deputy Maurice Quinlivan asked the Minister for Finance the reason VAT is included on the purchase of defibrillators; if he will consider removing such devices from the VAT net; and if he will make a statement on the matter. [19242/17]
Amharc ar fhreagraI propose to take Questions Nos. 227 and 228 together.
The VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the Directive, defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%.
In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within particular categories of goods and services specified in the Directive, in respect of which Member States may apply a lower VAT rate or an exemption from VAT. The supply of a defibrillator is not included in any of those categories of goods and therefore there is no discretion for Ireland to remove VAT from that supply.
The VAT (Refund of Tax) (No.15) Order, 1981 provides that individuals can obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund. However, a defibrillator purchased for general use by a charity or voluntary body would not qualify for a refund under this Order.
The Programme for Partnership Government recognises the difficulties faced by community groups in relation to VAT rates on certain products, such as defibrillators. While this is an EU competency, the Government has committed to work with our EU counterparts in seeking to reform this area.
Finally, in question 19241/17 the deputy appears to be referring to possible voted expenditure initiatives to support the goals referred to in this question, such expenditure would not fall within the ambit of my department's vote.
229. Deputy Barry Cowen asked the Minister for Finance if his Department has explored proposals for setting up a vehicle with the objective of hypothecating or smoothing annual revenues from corporation taxes, in view of the relatively volatile nature of these receipts over time. [19264/17]
Amharc ar fhreagraThe Government’s plan to establish a rainy day fund may go some way towards the intent behind the Deputy’s question. As announced in the 2016 Summer Economic Statement, it is proposed to retain some of the unused fiscal space in 2019, following the achievement of the medium-term budgetary objective in 2018, as a contingency reserve. If it is not deployed in the event of unanticipated adverse shock to the economy, it will be remitted to the rainy day fund. Work is underway on a consultation document to be circulated to the Oireachtas on the proposed operation of the fund and the specific circumstances under which it could be deployed.
Hypothecation involves linking specific expenditure to an explicit revenue source. It is only used in limited circumstances where there is a strong justification because it can cause difficulties for the efficient and effective management of the public finances. Furthermore, it also exposes specific expenditure dependent solely on a hypothecated revenue to any volatility associated with the revenue source in question.
As regards smoothing annual revenues, I assume that the Deputy is suggesting that revenue deemed to be in excess of a set level is paid from the Exchequer into a designated fund and subsequently drawn down from the fund when the revenue falls below the set level in order to maintain expenditure levels.
The basic premise behind the Deputy’s question, that cyclical or windfall revenue should not be spent, is one that the Government agrees with as evidenced by its commitment to comply with the fiscal rules. Under the rules, future permitted expenditure levels are driven by existing expenditure levels and the trend growth rate of the economy. To increase expenditure above the permitted level, discretionary revenue measures, usually tax increases, must be introduced. This is designed to ensure that increases in public expenditure are sustainably financed and it will reduce the danger that additional expenditure is being funded on the back of cyclical or windfall revenues.
The second part of the equation is that cyclical or windfall revenues from corporation tax, or, potentially, other taxes, should be held in a vehicle to be used to fund general expenditure, if and when revenues drop.
Consideration of this would need to reach a view on the appropriateness of holding such money in a vehicle or fund when our general government debt is very high in nominal terms, at over €200 billion. While such a fund would reduce our net debt, it would keep our gross debt at a high level and there would be, in all likelihood, a carry cost to bear. Furthermore, reducing our gross debt will increase our fiscal headroom or borrowing capacity that could be needed in the event of a future crisis and the reduction in gross debt would also reduce our annual interest bill.
The Deputy should also be aware that money transferred to such a fund from the Exchequer would not qualify as expenditure in statistical terms. It would only be when the money is transferred back to the Exchequer and spent that it would impact the general government balance. Unfortunately, the statistical system does not reward funding expenditure by savings put aside in previous years.
The key difference between the rainy day fund and the type of vehicle referred to in the question is that the rainy day fund could only be used to fund expenditure in certain specified circumstances and not as a general funding source.
230. Deputy Catherine Murphy asked the Minister for Finance the number of private investigation firms hired by the Revenue Commissioners in the past five years to date; the names of the firms; the amount they were paid; if they supplied the Revenue Commissioners with a report on completion of their work; and if he will make a statement on the matter. [19309/17]
Amharc ar fhreagraI am advised by Revenue that they have not hired any investigation firms in the past five years.
