Written Answers Nos. 99-106
99. Deputy Eamon Ryan asked the Tánaiste and Minister for Justice and Equality when the Government will submit its fifth, sixth and seventh report to the UN Committee on the Elimination of Racial Discrimination, in view of the fact that it has missed the last reporting deadline by over three years. [22352/17]
Amharc ar fhreagraThe procedure attached to the International Convention on the Elimination of All Forms of Racial Discrimination asks State Parties to submit a bi-annual report. There are 178 Parties to the Convention. As a result, the Committee on the Elimination of Racial Discrimination (CERD) has invited a number of State Parties to submit combined reports covering two and three reporting periods to alleviate the work load of the examining committee and their own work load.
My Department is working on Ireland's 5th, 6th and 7th Reports to CERD. Commencement of work on this task was delayed as priority was given to developing the Migrant Integration Strategy which was published on the 7th of February, 2017.
The Department continues to work on this wide ranging task and will invite the Department of Foreign Affairs and Trade to submit Ireland's 5th, 6th and 7th Reports under the International Convention on the Elimination of all forms of Racial Discrimination to the Secretary General of the United Nations, for consideration by the Committee on the Elimination of Racial Discrimination, later this year.
100. Deputy Róisín Shortall asked the Tánaiste and Minister for Justice and Equality the position regarding the implementation of action 5 of strategic priority 1 of the International Education Strategy for Ireland 2016 to 2020 (details supplied); and the reason for the delay in following through on this action. [22369/17]
Amharc ar fhreagraI intend to jointly announce, with my colleague the Minister for Education and Skills, the details for an approved updated Third Level Graduate Programme in the coming weeks. This Programme will update the provisions that enables legally resident non-EEA third level graduates to remain on in Ireland for the purposes of seeking employment and applying for a critical skills permit or a conventional employment permit, in a profession/discipline relevant to their degree.
It will deliver on the action point of the strategy referred to by the Deputy in time for this year’s graduates and accordingly there has been no delay in that regard.
101. Deputy John Lahart asked the Tánaiste and Minister for Justice and Equality the number of new Garda recruits assigned to each Dublin metropolitan region in each year since Garda recruitment resumed in 2014; and the attested personnel strength of each in September 2014 and at the end of April 2017. [22372/17]
Amharc ar fhreagraAs the Deputy will appreciate, the Garda Commissioner is responsible for the distribution of resources, including personnel, among the various Garda Divisions and I, as Minister, have no direct role in the matter. I am assured by the Commissioner that the allocation of Gardaí is continually monitored and reviewed taking into account all relevant factors including crime trends, demographics, and security assessments relating to the area in question so as to ensure optimal use is made of Garda human resources. It is the responsibility of the Divisional Officer to allocate personnel within his or her Division.
This Government is committed to ensuring a strong and visible police presence throughout the country in order to maintain and strengthen community engagement, provide reassurance to citizens and deter crime. To make this a reality for all, the Government has in place a plan to achieve an overall Garda workforce of 21,000 personnel by 2021 comprising 15,000 Garda members, 2,000 Reserve members and 4,000 civilians.
This plan is progressing well. This year, funding has been provided for the recruitment of 800 Garda recruits and up to 500 civilians to support the wide ranging reform plan in train in An Garda Síochána. Funding has also been provided for the recruitment of 300 Garda Reserves.
I am informed by the Commissioner, since the reopening of the Garda College in September 2014, that 981 recruits have attested as members of An Garda Síochána and have been assigned to mainstream duties nationwide. I am also informed that another 600 trainee Garda are scheduled to attest this year which will see Garda numbers, taking account of projected retirements, increase to around the 13,500 mark by year end - an increase of 500 since the end of 2016.
This focus on investment in personnel is critical. The moratorium on recruitment introduced in 2010 resulted in a significant reduction in the strength of An Garda Síochána. We are now rebuilding the organisation and providing the Commissioner with the resources she needs to allow her to deploy increasing numbers of Gardaí across every Garda Division, including the Dublin Metropolitan Region Divisions in the coming years.
I am informed by the Commissioner that the number of new Gardaí assigned to each Division in the D.M.R. Region each year following the resumption of Garda recruitment in 2014 and the strength of each of the Divisions concerned in September 2014 and on 31 March 2017, the latest date for which figures are readily available, is as set out in the following tables.
Number of new Gardaí assigned to each Division in the D.M.R. Region
|
Division |
2015 |
2016 |
2017 |
Total |
|
D.M.R. East |
9 |
19 |
14 |
42 |
|
D.M.R. North |
19 |
33 |
23 |
75 |
|
D.M.R. North Central |
22 |
43 |
28 |
93 |
|
D.M.R. South |
18 |
35 |
28 |
81 |
|
D.M.R. South Central |
19 |
44 |
29 |
92 |
|
D.M.R. West |
30 |
35 |
23 |
88 |
Strength of each Division in the D.M.R. Region
|
Division |
Sept 2014 |
March 2017 |
|
D.M.R. East |
394 |
379 |
|
D.M.R. North |
689 |
662 |
|
D.M.R. North Central |
614 |
598 |
|
D.M.R. South |
551 |
536 |
|
D.M.R. South Central |
649 |
609 |
|
D.M.R. West |
707 |
660 |
*As of 31 March 2017
102. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the hospitality sector continues to ensure good value to the customer arising from the 9% VAT rate; and if he will make a statement on the matter. [22390/17]
Amharc ar fhreagraAs part of the Government's Job Initiative in 2011, I introduced a temporary second reduced VAT rate of 9% in respect of tourism related services, including hotel and holiday accommodation; various entertainment services; the use of sporting facilities; hairdressing services; and various printed matter. This measure was aimed at boosting tourism and the creation of additional jobs in that sector.
In Budget 2014, I decided to retain the 9% rate to support the increased number of jobs already in place and accelerate the creation of new jobs. The rate was further retained in Budget 2015 in light of the job growth in the tourism sector.
The Programme for a Partnership Government, published in May 2016, made a commitment to work towards achieving the tourism policy goals set for 2025 through specific measures including the retention of the 9% VAT rate on tourism related services, but this itself is dependent on prices remaining competitive in the sector.
In Budget 2017, in light of Brexit, I considered it would be prudent to retain the 9% reduced VAT rate into 2017.
103. Deputy Paul Kehoe asked the Minister for Finance the status of a tax refund due to a person (details supplied); and if he will make a statement on the matter. [22203/17]
Amharc ar fhreagraI am advised by Revenue that as the person concerned did not pay any income tax in 2016 no refund is available. A refund of the Universal Social Charge deducted was issued to the person concerned on 21/04/2017.
104. Deputy Pearse Doherty asked the Minister for Finance the methodology and components of same used to calculate the expected income tax and universal social charge revenues to the Exchequer for 2017; and if he will make a statement on the matter. [22240/17]
Amharc ar fhreagraIn general, the forecasts for all tax-heads use a broadly similar methodology. Specifically, in relation to the Budget 2017 forecasts in respect of income tax (PAYE) and Universal Social Charge (PAYE) the approach is set out below:
Firstly an estimate of the 2016 outturn was calculated last October, which became the starting point for 2017, or base year outturn. This starting point is then adjusted to take account of any known one-offs from the previous year or any one-off payments likely to occur in-year as advised by the Revenue Commissioners. In addition, any carryover effects from previous budgets are incorporated into the forecast at this stage.
Taking account of these factors the “clean base” is then grown by the macro-economic data, and relevant tax elasticities. For income tax and USC, the macro-economic drivers applied are non-agricultural pay per capita and non-agriculture employment. A wage and an employment elasticity were then applied to both income tax and USC. Following this, relevant policy changes such as the Budget day income tax package, as costed by the Revenue Commissioners, were incorporated into the forecast.
As a final check the forecasts are reviewed to determine whether the response of taxes to growth in the macro/tax base will change over time. If it is the case that certain taxes are more responsive during cyclical upswings or downturns, then judgement can be incorporated to enhance the overall accuracy of the forecast.
It should be noted that Irish Fiscal Advisory Council (IFAC) have stated previously that judgement can enrich the accuracy of the forecasts. It is important to point out that all the macro-economic data used in the official fiscal forecasts are endorsed by the IFAC in advance of the Budget or Stability Programme Updates. In addition, IFAC are responsible for assessing and commenting on the Governments fiscal forecasts and on the fiscal stance, as well as assessing compliance with fiscal rules.
As part of the continuous efforts to improve the Department’s tax forecasting performance, research being jointly conducted by the ESRI and Department, which commenced in 2016, examined the sensitivity of income tax and USC revenues to changes in income. As a result of this work published in March 2017, the Department has revised the income tax and USC revenue elasticities used in the forecasting process, which will affect these forecasts from 2018 onwards.
Finally, Budget 2017 outlines the risk to the forecast which exists between the ‘two pack’ requirement for an October Budget and the strong distribution of certain income tax receipts including those from self-employed to later in the year. This presents an in-built potential for volatility.
105. Deputy Pearse Doherty asked the Minister for Finance the methodology and components of same used to calculate the corporate tax revenues to the Exchequer for 2017; the extent to which 2016 corporate tax receipts played in this calculation; and if he will make a statement on the matter. [22241/17]
Amharc ar fhreagraIn general, forecasts for all tax-heads use a broadly similar methodology. Specifically, in relation to the Budget 2017 forecasts in respect of corporation tax the approach is set out below.
Firstly an estimate of the 2016 outturn was calculated last October, which became the starting point for 2017, or base year outturn. This starting point is then adjusted to take account of any known one-offs from the previous year or any one-off payments/refunds likely to occur in-year, which are provided by the Revenue Commissioners. In addition, any carryover effects from previous budgets are incorporated into the forecast at this stage.
Taking account of these factors the “clean base” is then grown by the macro-economic data, and relevant tax elasticities. For corporation tax, the macro-economic driver applied is Gross Operating Surplus. Following this, relevant policy changes such as Budget day corporation tax changes, which are costed by the Revenue Commissioners, are incorporated into the forecast.
As a final check the forecasts are reviewed to determine whether the response of taxes to growth in the macro/tax base will change over time. If it is the case that certain taxes are more responsive during cyclical upswings or downturns, then judgment can be incorporated to enhance the overall accuracy of the forecast.
It should be noted that Irish Fiscal Advisory Council (IFAC) have stated previously that judgment can enrich the accuracy of the forecasts. It is important to point out that all the macro-economic data used in the official fiscal forecasts are endorsed by the IFAC in advance of the Budget or Stability Programme Updates. In addition, IFAC are responsible for assessing and commenting on the Governments fiscal forecasts and on the fiscal stance, as well as assessing compliance with fiscal rules.
It should be noted that the 2016 actual outturn of €7,351 million was €164 million or 2.2% below the October 2016 estimate.
Finally, Budget 2017 outlines the risk to the forecast which exists between the ‘two pack’ requirement for an October Budget and the strong distribution of certain receipts such as corporation tax to later in the year. This presents an in-built potential for volatility.
106. Deputy Róisín Shortall asked the Minister for Finance the reason for the reduced income tax receipts in the past two quarters in view of the increased numbers of persons in employment. [22380/17]
Amharc ar fhreagraThe position is that income tax receipts have performed steadily in the last two consecutive quarters, recording annual growth of 5.1% (€301 million) and 1.4% (€62 million) respectively. The following tables set out the income tax year-on-year performance in the last two quarters:
|
End-quarter 4 2016 |
End quarter 4 2015 |
Y-on-Y Change |
Y-on-Y Change % |
|
|
Income Tax |
€6,216 |
€5,915 |
+ €301 million |
+ 5.1% |
|
End-quarter 1 2017 |
End-quarter 1 2016 |
Y-on-Y Change |
Y-on-Y Change % |
|
|
Income Tax |
€4,417 |
€4,355 |
+ €62 million |
+ 1.4% |
However, I assume the Deputy is referring to the income tax performance against target. Revenues under this heading were solid in 2016, with €19,169 million received, finishing the year 0.9 per cent (€174 million) above target. This represented a strong year-on-year increase of 4.4 per cent (€810 million).
In relation to the first quarter of 2017, the position is that income tax has performed steadily with annual growth of 1.4 per cent or €62 million recorded in the year-to-end-March. However, income tax receipts of €4,417 million were 3.9 per cent below profile. The shortfall against target is attributable across a range of income tax components contained within the overall heading.
It is important to point out that income tax encompasses a broad range of elements, some of which are not directly impacted by employment or wage developments. These include Deposit Interest Retention Tax, Life Assurance Exit Tax, Dividend Withholding Tax, Professional Services Withholding Tax and Back Duty. These payments can be 'lumpy' in nature and the timing of payments can vary from year to year. I am informed by the Revenue Commissioners that the majority of these specific components are having a drag on overall income tax receipts in the first quarter of 2017.
In relation to PAYE, the most significant component of overall income tax, closed quarter 1 of 2017, broadly in line with profile down just 2% (€49 million), but up 6% (€187 million) in year-on-year terms.
However, the PAYE component of USC came in 7% (€63 million) below Revenue profile, which represents a year-on-year decrease of 12 per cent (€107 million). The Deputy will appreciate that a reduction in USC was expected in 2017 given the measures I introduced in Budget 2017. In addition, it is important to point out that in the last three budgets, I have introduced income tax measures with a full year cost of c. €2.2 billion, of which €1.8 billion related to USC changes, which were designed to encourage and reward work. These will naturally impact upon the annual growth rate of USC receipts.
Notwithstanding this, the performance of USC is lower than expected and the Revenue Commissioners, along with officials from my Department, are examining the matter.
Furthermore, it should be noted that a similar position pertained at the end of the first quarter in 2016 – income tax was up 2.7% (€114 million) year–on-year, but down 3.4% (€153 million versus profile). However, due to a pick-up in receipts throughout the remainder of year, income tax finished 2016 ahead of target.
