Written Answers Nos. 60 - 70
60. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Justice and Equality the current residency status in the case of a person (details supplied); and if she will make a statement on the matter. [22615/17]
Amharc ar fhreagraI am advised by the Irish Naturalisation and Immigration Service (INIS) of my Department that the person mentioned by the Deputy made an application to INIS, at the beginning of February 2017, for permission to remain in the State, as the spouse of an Irish National and that this application is currently being processed. All applications are dealt with in strict chronological order; the processing time is currently approximately 12 months.
I wish to refer the Deputy to his previous Parliamentary Question Ref. No. 17334/17, which was answered on 4 April 2017. The position remains unchanged.
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 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 Parliamentary Question 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.
61. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Justice and Equality the progress to date in the determination of an application for naturalisation in the case of a person (details supplied). [22617/17]
Amharc ar fhreagraI am advised by the Irish Naturalisation and Immigration Service (INIS) of my Department that a final decision on the application for a certificate of naturalisation from the person referred to by the Deputy has been deferred until November 2019. The person concerned was notified of this decision and the reasons for it in a letter issued on 14 March 2017.
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.
62. Deputy Niall Collins asked the Minister for Finance the progress on the programme for Government commitment to investigate the German Sparkassen model for the development of local public banks that operate within well defined regions; and the key elements under this model that facilitate accessible lending to enterprises and promote SME growth. [22641/17]
Amharc ar fhreagraThe Programme for Government contains a commitment to thoroughly investigate the Sparkassen model of local public banks that operate within well-defined regions. The Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs (DAHRRGA) is the lead Department in respect of this commitment. DAHRRGA undertook a consultation process, engaging with stakeholders and interested parties, which finished at the end of March of this year. As part of this consultation process, meetings were held with Sparkassen, Irish Rural Link and the Public Banking Forum of Ireland.
Officials from my Department are assisting DAHRRGA to prepare a report for the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs and myself setting out the findings and conclusions of this investigation into the key elements of the Sparkassen model of local public banking as it relates to SMEs. It is anticipated that this report will be completed by mid-year.
As the Deputy will be aware, SMEs can access lower cost, flexible finance from the Strategic Banking Corporation of Ireland (SBCI). To the end of December 2016, the SBCI has lent €544 million to 12,593 SMEs. The SBCI’s goal is to increase the availability of funding to SMEs at a lower cost and on more flexible terms than has been available in recent times on the Irish market. The SBCI uses an on-lending model; this means it does not lend directly to SMEs. At present, the SBCI has 3 bank and 5 non-bank on-lenders. The SMEs who received SBCI finance are from a variety of business and economic sectors. More than 80% of loans are for investment purposes and the average loan size is €43,200. There is a broad regional spread of the SMEs supported, with 84.8% of them based outside Dublin.
The Deputy may also wish to note that there are already significant Government measures to support the financing needs of SMEs. As well as the SBCI, there is the Supporting SMEs Online Tool, the Credit Guarantee Scheme, the Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office.
The Supporting SMEs Online Tool is a cross-government initiative. By answering eight simple questions, SMEs will receive a tailored list of available Government supports to suit their needs. The Supporting SMEs Online Tool is available at www.supportingsmes.ie.
The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs. Further information is available on the Department of Jobs, Enterprise and Innovation website.
The Microenterprise Loan Fund, administered by Microfinance Ireland, is an additional source of credit that provides loans for up to €25,000 to start-up, newly established, or growing micro enterprises employing less than 10 people. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund (www.microfinanceireland.ie).
The Credit Review Office (CRO) is another government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The CRO overturns more than 50% of appeals it receives. Further details are available at www.creditreview.ie.
The Deputy may rest assured that it is a key Government strategy to ensure State supports enable the growth of Irish SMEs by facilitating access to credit and promoting investment in SMEs.
63. Deputy Brendan Howlin asked the Minister for Finance the progress of the working group on tax and fiscal treatment of rental accommodation providers; the number of times the group has met; the sectorial inputs it has received or requested, other than the public consultation; the timeline for the group to produce a final report; and if he will make a statement on the matter. [22405/17]
Amharc ar fhreagraAs the Deputy will be aware, the Strategy for the Rental Sector, published by the Department of Housing, Planning, Community and Local Government in December 2016, committed to the establishment of a working group in early 2017 to examine and report on the tax treatment of landlords (or rental accommodation providers), and to put forward options, where appropriate, for amendments to such treatment. This working group was set up in January 2017, is chaired by the Department of Finance and its membership consists of officials from the Tax and Economics Divisions of the Department of Finance; the Revenue Commissioners; the Housing Division of the Department of Housing, Planning, Community and Local Government (DHPCLG); and the Residential Tenancies Board.
As notified to the Deputy previously, there was an opportunity for all interested parties to engage with the Working Group as part of the targeted public consultation which was conducted over four weeks from Friday 10 March to Friday 7 April 2017. The consultation paper asked ten targeted questions which covered subjects such as mortgage interest relief, capital repayment relief, rental accommodation as a pension investment, the deductibility of various expenses, Capital Gains Tax, long-term tenancies, accidental landlords, the Rent-a-Room Scheme and vacant properties. Individuals had the option to answer any, all, or none of the questions, when making their submissions. The public consultation received almost 70 written submissions from a wide range of interested parties, including individual landlords, representative bodies and charitable organisations. A number of representatives from the sector were also invited to a meeting of the working group to discuss and present on relevant issues from their perspectives.
To date, the Working Group has met five times and a sixth meeting is scheduled for early next week. It is estimated that the report of the Working Group will be presented to me by the end of July 2017, to allow for consideration of any of the options put forward, as part of my deliberations for Budget 2018.
64. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding Central Bank rules when dealing with credit unions; and if he will make a statement on the matter. [22467/17]
Amharc ar fhreagraMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
Credit unions are regulated and supervised by the Registrar of Credit Unions at the Central Bank who is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and myself, as Minister for Finance, are working together for the safety of members' savings and the security of the credit union sector.
The Central Bank informed me that they are prevented by legislation from discussing individual regulated firms and are therefore not in a position to discuss details about their supervisory engagement with individual credit unions.
However, the Central Bank has informed me that adequate reserves support a credit union’s operations, provide a base for future growth and protect against the risk of unforeseen losses. Credit unions need to maintain sufficient reserves to ensure continuity and to protect members’ savings. The regulatory reserve requirement (capital requirement) for credit unions is the amount required to be held in the regulatory reserve of a credit union, expressed as a percentage of the assets of a credit union. All credit unions are required to maintain a minimum regulatory reserve of at least 10% of the assets of the credit union. Credit union reserves comprise retained earnings from current and previous years, which limits their ability to raise reserves as they do not have the ability to raise capital through other means. Reserves available to a credit union for the purposes of the Regulatory Reserve Requirement must be realised, unrestricted and non-distributable to ensure they are capable of absorbing losses.
The Report of the Commission on Credit Unions, published in April 2012, sets out detailed governance standards for credit unions. The majority of these governance standards were reflected in the Credit Union and Co-operation with Overseas Regulators Act 2012 which provides a legislative framework to improve governance standards in credit unions with a particular focus on those who exercise significant influence and control in a credit union i.e. board of directors and the management team. The Commission on Credit Unions also made recommendations in relation to the introduction of fitness and probity for credit unions. In 2013, a tailored version of the Fitness and Probity regime applying to all other regulated financial service providers was introduced for credit unions and is now fully implemented.
Credit union members should have confidence that those individuals holding senior positions in credit unions can demonstrate that they are competent and capable, act honestly, ethically and with integrity and are financially sound. Under the Fitness and Probity regime for credit unions an individual is required to have and to demonstrate the competence necessary to perform specified functions. This is normally tested with regard to the relevant experience of the individual and/or relevant qualifications.
I am satisfied that in the performance of her regulatory and supervisory functions, the Registrar of Credit Unions is working in the best interests of individual credit unions, their members and the sector as a whole.
This Government recognises the important role of credit unions as a volunteer co-operative movement in Ireland and the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to continue to support a strengthened and growing credit union movement.
65. Deputy Thomas P. Broughan asked the Minister for Finance the average income tax paid by PAYE workers on the standard rate of tax and by PAYE workers on the higher rate of tax in the public sector; and if he will make a statement on the matter. [22472/17]
Amharc ar fhreagra66. Deputy Thomas P. Broughan asked the Minister for Finance the average income tax paid by PAYE workers on the standard rate of tax and by PAYE workers on the higher rate of tax in the private sector; and if he will make a statement on the matter. [22473/17]
Amharc ar fhreagra67. Deputy Thomas P. Broughan asked the Minister for Finance the average income tax paid by persons in self-employment; and if he will make a statement on the matter. [22474/17]
Amharc ar fhreagra68. Deputy Thomas P. Broughan asked the Minister for Finance the average income tax paid by farm households in which the main income is derived from farming; and if he will make a statement on the matter. [22475/17]
Amharc ar fhreagraI propose to take Questions Nos. 65 to 68, inclusive, together.
I am informed by Revenue that, on the basis of information derived from Income Tax returns filed for the year 2014, the latest year for which data are available, the average Income Tax paid by public sector PAYE workers on the standard and higher rate of tax is €3,727 and €19,578 respectively. The average paid by private sector PAYE workers on the standard and higher rate is €3,078 and €22,538 respectively.
The distinction between public and private sector PAYE workers involves a degree of estimation using the activity description of the employers. The averages are calculated on the basis of taxpayer units that include jointly assessed taxpayers as one unit. Tax paid is Income Tax only and does not include USC. The average is calculated on all sources of income and a taxpayer is deemed to be a PAYE worker if over half their income is PAYE income. Tax exempt employees have been excluded. For the purpose of this calculation, taxpayers on marginal relief and taxpayers whose nominal liability at the higher rate is fully covered by their tax credits have been counted as being at the standard rate.
The average Income Tax paid by Self Employed (Schedule D) persons in 2014 on the standard and higher rate of tax is €3,630 and €42,254 respectively, with an overall average of €12,595. These averages are calculated on the basis of taxpayer units that include jointly assessed taxpayers as one unit. Tax paid is Income Tax only and does not include USC. The average is calculated on all sources of income and a taxpayer is deemed to be a self employed if over half their income is non-PAYE income. Tax exempt persons have been excluded. For the purpose of this calculation, taxpayers on marginal relief and taxpayers whose nominal liability at the higher rate is fully covered by their tax credits have been counted as being at the standard rate.
I am advised by Revenue that taxpayer returns are not furnished in a manner which would enable the calculation of the average income tax paid by a farm ‘household’. However it may be of interest to the Deputy that Revenue have published a report on “The Farming Sector in Ireland: A Profile from Revenue Data” and a subsequent update, both available at http://www.revenue.ie/en/about/research/statistical-reports.html that presents a statistical analysis of farmers from the perspective of Revenue data.
69. Deputy Thomas P. Broughan asked the Minister for Finance his plans to reform the standards of corporate governance in investment fund management; and if he will make a statement on the matter. [22476/17]
Amharc ar fhreagraThe Central Bank of Ireland is responsible for the authorisation and supervision of fund management companies established in Ireland.
I have been informed by the Bank that it has undertaken a significant project examining fund management company effectiveness which dealt with the issue of governance by aiming to enhance organisational effectiveness and setting out expectations with regard to how directors of fund management companies should carry out their roles.
That work concluded in December 2016 when the Central Bank published its finalised guidance for fund management companies and new rules on managerial functions, organisational effectiveness, effective supervision requirement/location of directors and Designated Persons and retrievability of records.
Fund management companies now have a period of time within which to make any changes necessary to comply with the new rules and to operate in a manner consistent with the new guidance.
70. Deputy Róisín Shortall asked the Minister for Finance if price data for land purchases are filed with the Revenue Commissioners; if so, the circumstances under which this is collected, for example, as part of stamp duty requirements; if it is usually filed electronically; if the zoning, area, current primary use or other details of the land in question are collected as part or the same process; and the location which the price data and other data are currently published. [22521/17]
Amharc ar fhreagraI am advised by Revenue that information regarding purchases of land (non-residential / commercial property) is collected by Revenue through Stamp Duty returns that are filed via Revenue’s e-Stamping System.
In relation to land the filer must indicate if the land falls within any of the following categories –
- Site only
- Agricultural land
- Non-Agricultural land
- New Commercial / Industrial Premises
- Second-hand Commercial / Industrial Premises.
The address of the property must be provided together with the land area in hectares where the land is site only, agricultural land or non-agricultural land. Data in relation to zoning or current primary use is not captured.
Certain information collected by Revenue from returns filed in respect of non-residential property is exchanged with the Valuation Office and the Central Statistics Office. Certain information collected by Revenue from Stamp Duty returns relating to the purchase of residential property is exchanged with the Property Services Regulatory Authority and the Central Statistics Office.
