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Tuesday, 27 Jun 2017

Written Answers Nos 163-181

Departmental Staff Data

Ceisteanna (163)

Mick Wallace

Ceist:

163. Deputy Mick Wallace asked the Minister for Finance the number of temporary Civil Service clerical officer appointments made in his Department from 1 January 2015 to 31 May 2017, by county, in tabular form. [29907/17]

Amharc ar fhreagra

Freagraí scríofa

I wish to inform the Deputy that 18 temporary Clerical Officers were appointed to my Department between the period 1 January 2015 to 31 May 2017.

Number

Duration of appointment

Location

1

26.01.2015 – 20.02.2015

Dublin

1

26.01.2015 – 06.03.2015

Dublin

5

26.01.2015 – 02.04.2015

Dublin

1

26.01.2015 – 08.05.2015

Dublin

2

26.01.2015 – 05.06.2015

Dublin

1

06.07.2015 – 25.08.2015

Offaly

1

06.07.2015 – 13.05.2016

Offaly

1

20.07.2015 – 04.12.2015

Dublin

1

20.07.2015 – 21.12.2015

Dublin

1

20.07.2015 – 24.12.2015

Dublin

1

27.07.2015 – 31.12.2015

Dublin

1

17.08.2015 – 23.12.2015

Dublin

1

15.08.2016 – 14.02.2017

Offaly

Tax Code

Ceisteanna (164)

Pearse Doherty

Ceist:

164. Deputy Pearse Doherty asked the Minister for Finance the tax treatment regarding the distribution of the value of the fund to non-resident investors in the event of an Irish real estate fund being liquidated with assets valued at greater than the market value of their cost. [30041/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that Irish Real Estate Funds (IREFs) must operate IREF withholding tax on the happening of certain taxable events.  This includes the cancellation, redemption or repurchase of units as a result of liquidation.

The amount on which the IREF withholding tax is operated is the portion of any amounts so distributed which relate to Irish property profits.  Any difference between the market value of the Irish property assets on liquidation and their cost would form part of an IREF’s Irish property profits.

IREF withholding tax applies on distributions to non-residents, subject to specific exemptions as set out in the legislation.

Therefore, following liquidation any Irish property profits of the IREF which are distributed to non-residents, who do not come within the terms of the exemptions, will be subject to IREF withholding tax.

Central Bank of Ireland Supervision

Ceisteanna (165)

Bernard Durkan

Ceist:

165. Deputy Bernard J. Durkan asked the Minister for Finance the progress to date in 2017 in the determination of the appropriateness of holding public consultation in respect of crowdfunding peer-to-peer finance in conjunction with the Central Bank of Ireland; and if he will make a statement on the matter. [30060/17]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, the 2017 IFS 2020 Action Plan commits my Department to conduct a public consultation on the potential regulation of crowdfunding in Ireland, having regard to emerging international best practice and in the context of the EU Commission Action Plan on Building a Capital Markets Union.

IFS 2020 is the Government’s five-year strategy for driving the growth and development of the International Financial Services sector in Ireland, aiming to create 10,000 new jobs. The Commission notes that crowdfunding is part of the broader FinTech universe and has potentially transformative implication for the financial system.

My Department recently launched a six-week public consultation process on the regulation of crowdfunding that closed on 2 June 2017. Officials in my Department consulted with officials in the Central Bank of Ireland in the preparation of this public consultation; however, the consultation was not carried out jointly with the Central Bank of Ireland.

The submissions received to the public consultations will now be considered by my Department and they will inform our policy position on whether or not a regulatory regime for crowdfunding would be appropriate and if a bespoke regime should be implemented in Ireland. The submissions will be published on the Department website in due course.

Credit Union Regulation

Ceisteanna (166)

Clare Daly

Ceist:

166. Deputy Clare Daly asked the Minister for Finance the status of investigations carried out by the Central Bank into a credit union (details supplied); and if he will make a statement on the matter. [30080/17]

Amharc ar fhreagra

Freagraí scríofa

My role as Minister for Finance is to ensure the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.

The Registrar of Credit Unions at the Central Bank 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.

In relation to your question regarding the status of investigations carried out by the Central Bank into a specific credit union, the Central Bank informs me that it is subject to strict confidentiality requirements under section 33AK of the Central Bank Act 1942, and therefore cannot comment on an individual credit union.

Credit Union Regulation

Ceisteanna (167)

Alan Kelly

Ceist:

167. Deputy Alan Kelly asked the Minister for Finance if it is permissible for the board and board oversight committee members of a credit union to receive a small shopping voucher (details supplied) at Christmas time from their credit union as a token of appreciation in view of the fact that credit union directors and board oversight committee members are volunteers and receive no remuneration for their work; and if he will make a statement on the matter. [30082/17]

Amharc ar fhreagra

Freagraí scríofa

Credit unions operate under a not-for-profit mandate, have a community focus and a volunteer ethos. These are the distinctive features that set credit unions apart from other financial organisations.

In line with its ethos, the Credit Union Act 1997 provides for a limitation of remuneration for specific posts within a credit union. This matter is governed by Section 68 of the 1997 Act which specifically states that:

(1) A credit union shall not pay any remuneration, directly or indirectly, to -

(a) a director of the credit union, or

(b) a member of the board oversight committee or a principal Committee of the credit union,

for any service performed by that person in that capacity.

The 1997 Act further states that

(2) Nothing in subsection (1) shall be regarded as prohibiting the payment (or reimbursement) of expenses -

(a) which are necessarily incurred by a director or committee member in the course of performing any service on behalf, or for the benefit, of the credit union; and

(b) which are approved by a majority of the directors voting at a meeting of the board.

A credit union is legally responsible for compliance with requirements imposed under legislation and within regulations. Should the Deputy have any particular concern, this should be brought to the attention of the Registrar of Credit Unions at the Central Bank who is responsible for regulation and supervision of the credit union sector.

Vehicle Registration

Ceisteanna (168)

Robert Troy

Ceist:

168. Deputy Robert Troy asked the Minister for Finance the position regarding an appeal against VRT charges for a person (details supplied) in view of the fact that the vehicle in question was purchased just inside the six month deadline for exemption; and if he will make a statement on the matter. [30102/17]

Amharc ar fhreagra

Freagraí scríofa

Relief from the payment of Vehicle Registration Tax (VRT) is provided for under the Finance Act 1992, s.134(1)(a) and Vehicle Registration Tax (Permanent Reliefs) Regulations 1993, Reg 4, (S.I. No. 59/93). In order to qualify for relief an applicant must meet a number of eligibility criteria including the possession and actual use of the vehicle outside the State for at least six months prior to their transfer of residence.  As the person concerned did not submit sufficient evidence demonstrating satisfaction of this criterion, her application was refused.

The person concerned was advised by Revenue by letter dated 11 April 2017 that her application for relief from VRT was unsuccessful and that the vehicle should be registered immediately or exported from the State within 10 days. She was also advised that should she wish to appeal the decision the vehicle must be registered and the appropriate taxes paid before an appeal could be considered. While a letter of appeal was submitted by the person concerned, her appeal could not progress as the vehicle concerned was not registered and the VRT was not paid.

I am advised by Revenue that the person concerned subsequently submitted documentation in relation to her appeal on 9 June 2017. Revenue concessionally decided to consider this as a new application rather than as an appeal. However, as the documentation submitted did not conclusively show that the eligibility criteria were satisfied, the application was refused and the decision advised to the person concerned by letter dated 16 June 2017.

The option to officially appeal the decision remains open to the person concerned for a period of 2 months from 16 June 2017.  The relevant legal provisions of the two stage VRT appeal process are set out in Sections 145 and 146 of the Finance Act 2001 and are also detailed on the Revenue website (please see: VRT Appeals Process). The appeals process provides for a Stage 1 review of the original decision by a Revenue officer not previously involved in the case and a Stage 2 appeal to the Tax Appeals Commission. However, as previously stated, the vehicle must first be registered and the appropriate taxes paid.

Tax Reliefs Data

Ceisteanna (169)

Jackie Cahill

Ceist:

169. Deputy Jackie Cahill asked the Minister for Finance the number of long-term leasing arrangements entered into to avail of measures to assist in rebalancing the market by enhancing the existing tax relief for income from long-term leasing on land in each of the years 2014 to 2016 and to date in 2017 in tabular form. [30114/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that a Costs of Tax Expenditures table is available on the Revenue Statistics webpage at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. This table provides an annual breakdown of the cost to the Exchequer for the ‘Exempt Rental Income from Leasing of Farm Land' for the years 2009 to 2014, the latest year for which data are presently available. The table will be updated in due course as newer data become available.

Mortgage Interest Relief Expenditure

Ceisteanna (170)

Barry Cowen

Ceist:

170. Deputy Barry Cowen asked the Minister for Finance the estimated cost of introducing a scheme to enable landlords in the private rental market to claim full relief on their mortgage interest as an expense against rental income. [30115/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that, based on personal Income Tax returns filed for the year 2014, the latest year for which complete information is available, and making certain assumptions, it is estimated that the cost of increasing the level at which landlords can claim interest repayments against tax for residential rental properties from 80% (the amount allowable in 2017) to 100% is in the order of €56 million per annum.

As the Deputy will be aware, Finance Act 2016 provided for the phased restoration of full interest deductibility in respect of interest on loans used in the purchase, improvement or repair of rented residential property in computing the amount of rental income chargeable to tax. This is being done over a 5 year period by way of annual increments of 5 percentage points, with the first increase from 75 per cent to 80 per cent having taken effect for interest accruing on or after 1 January 2017.

Further annual 5 percentage point increments in the rate of deductible interest will apply to interest accruing in each of the years 2018 to 2021 inclusive and full deductibility will be restored for interest accruing on or after 1 January 2021.

Restoring full deductibility over a period of 5 years allows for the continued effectiveness in the interim of the incentive introduced in Finance Act 2015 whereby landlords who let their property to social housing tenants for a minimum period of three years can obtain a deduction of 100% of qualifying interest. Further information on this relief is available in section 97 of the Revenue Commissioners – Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2016 Edition – Part 4 Principal Provisions Relating to the Schedule D charge, which is available at: http://www.revenue.ie/en/practitioner/law/notes-for-guidance/tca/part04.pdf.

Personal Contract Plans

Ceisteanna (171)

Joan Burton

Ceist:

171. Deputy Joan Burton asked the Minister for Finance the number of personal contract plans financed in each of the years 2014 to 2016 and to date in 2017; the amount of the loans; the number of vehicles involved and the way in which such loans are regulated; and if he will make a statement on the matter. [30117/17]

Amharc ar fhreagra

Freagraí scríofa

As I stated previously in replies to questions regarding this issue, Personal Contract Plans (PCPs) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.  The statistics requested by the Deputy are not available.  

However, on the issue more generally, the CCPC is responsible under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom may sell PCPs to consumers on behalf of a finance company. A "credit intermediary" is defined as "a person...who in the course of his business arranges or offers to arrange for a consumer the provision of credit or the letting of goods in return for a commission, payment or consideration of any kind from the provider of the credit or the owner, as the case may be". 

The CCPC provides licenses to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation which is available on the CCPC website www.ccpc.ie. The CCPC deals with complaints about the advertising of Credit Agreements and the advertising of car finance on credit intermediary websites and in the media.  It also has a specific statutory remit to provide personal finance information and education to assist consumers.

The CCPC has, on a number of occasions, conducted research into the car market and car finance sectors, and has conducted numerous public awareness campaigns on the issue of car finance in recent years. Its current campaign, which commenced on 5 June, focuses on car finance and specifically aims to provide information to consumers on issues in relation to PCPs, such as the fact that the consumer does not become the legal owner of the car until they make the final payment. The CCPC plans to conduct further research into PCPs in the second half of this year.

If a consumer has concerns regarding the activities of credit intermediaries, they may wish to contact the CCPC. The Financial Services Ombudsman can also investigate complaints from individual consumers about credit intermediaries.

EU Budgets

Ceisteanna (172)

Robert Troy

Ceist:

172. Deputy Robert Troy asked the Minister for Finance if his Department has undertaken estimates of the increase in annual EU contributions that the State may have to make if a decision is made at EU level to ensure there is no net reduction in the EU budget following Brexit and to equally distribute the burden of making up the lost contribution arising from the departure of the UK. [30201/17]

Amharc ar fhreagra

Freagraí scríofa

Until it formally withdraws from the European Union, the UK remains a full EU Member, with all of its existing rights and obligations including in relation to the EU Budget. Brexit is likely to involve complex discussion on the Multiannual Financial Framework, particularly as the UK is an important net contributor to the EU Budget. Therefore, Brexit will have a significant impact on EU Budget funding and expenditure and may need to be mitigated by either increased contributions from other Member States, reductions in EU funding programmes, or a combination of both.

My Department has undertaken some broad analysis to estimate the potential impact of Brexit on our annual EU budget contributions, including the scenario if a decision is made at EU level to ensure there is no net reduction in the EU budget following Brexit. This analysis will need to be developed in more detail in the coming period, when the parameters of the budget negotiations are better defined. In particular, a key point will be getting agreement amongst the EU27 on a common approach to the future of the EU Budget. However, it would not be helpful to speculate or comment on any amounts at this stage in advance of those negotiations.

Departmental Staff Data

Ceisteanna (173)

Brendan Howlin

Ceist:

173. Deputy Brendan Howlin asked the Minister for Public Expenditure and Reform the staffing complement of his Department in whole-time equivalents as at the end of 2016. [29609/17]

Amharc ar fhreagra

Freagraí scríofa

As requested, please find information on the staffing complement of my Department in whole time equivalents as at the end of 2016.

My Department is also responsible for the National Shared Services Office "NSSO" and the Office of Government Procurement "OGP" and I have provided the information in relation to these organisations separately.

-

Department of Public Expenditure and Reform

National Shared Services Office

Office of Government Procurement

Total WTE

352.09

595.31

190.40

Public Sector Staff Remuneration

Ceisteanna (174)

Kathleen Funchion

Ceist:

174. Deputy Kathleen Funchion asked the Minister for Public Expenditure and Reform the date on which the rates of pay for secretarial assistants employed by Members of the Houses of the Oireachtas were last increased; his plans to review these rates in view of the large volume of constituency work secretarial assistants deal with; and if he will make a statement on the matter. [29709/17]

Amharc ar fhreagra

Freagraí scríofa

The rates of pay for Secretarial Assistants were last increased on 1 September 2008 in line with similar such pay revisions for grades in the public service with whom the Secretarial Assistants would have a correspondence for pay movement purposes. However, Secretarial Assistants are employed on a direct contractual basis by Members of the Houses of the Oireachtas as well as by qualifying political parties and, as such, they were not subject to any of the following remuneration measures which applied to public servants and which included: i) pension related deductions; ii) pay reductions and iii) freezing of increments introduced under the Financial Emergency Measures in the Public Interest Acts and the Haddington Road Agreement. In addition public servants have been required to undertake a range of ongoing work productivity related measures.

There are no plans to revise the salaries of Secretarial Assistants.

Flood Risk Management

Ceisteanna (175)

Carol Nolan

Ceist:

175. Deputy Carol Nolan asked the Minister for Public Expenditure and Reform if the flood risk management plans along the Shannon basin have been finalised; the funding allocated to the catchment flood risk assessment and management programme; the funding that has been provided for the establishment of flood relief structural measures along the Shannon basin; the timeframe for the establishment of the structures; and if he will make a statement on the matter. [29738/17]

Amharc ar fhreagra

Freagraí scríofa

Since 2009, a number of major flood defence schemes have been completed in the Shannon catchment area including Ennis Upper and Derrymullen, Ballinasloe. Further schemes are currently underway at Kings Island in Limerick, Foynes, Athlone, Ennis Lower and Ennis South.

The core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme is focussing on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, identified as being at potentially significant risk of flooding. It is the principal vehicle for implementing the EU Floods Directive and national flood policy.

The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of Flood Risk Management Plans (FRMPs).

The Shannon CFRAM Study is one of six regional CFRAM Studies commissioned by the OPW to examine in detail the causes of significant potential flooding risk. It is a significant project covering an area of 17,800 square kilometres with a population of 670,000 in 17 local authority areas. 66 of the 300 AFAs nationally are located within the Shannon CFRAM Study area. The CFRAM is also addressing the management of the flood risk on the Shannon Callows as part of this programme. The overall cost of the Shannon CFRAM Study to date is €7.1m.

There has been an extensive response to the recent public consultation on the draft FRMPs and has provided constructive and wide-ranging observations and comments. The review and assessment of each of these, while taking longer than expected, is indicative of the nature of the value of the comments received and are informing the final Plans.

Final Plans, taking account of the submissions received, are now being reviewed by the OPW. They will then be submitted over the coming weeks to the Department of Public Expenditure and Reform in relation to the environmental assessments of the Plans prior to their formal submission to the Minister for Public Expenditure and Reform for approval, scheduled for the Autumn.

Determining which option best addresses the flood risk for each area was decided against agreed Flood Risk Management Objectives. The Objectives are aimed at considering potential benefits and impacts across a broad range of factors including economic, environmental and cultural, social and technical. Prioritising schemes for investment in the future will be assessed against the respective costs and benefits each delivers against the Objectives.

While the information in relation to the costs for each measure are not available at this time the Minister for Public Expenditure and Reform in September 2015 announced details of a €430 million 6 year programme of capital investment on flood defence measures as part of the Government’s overall Capital Investment Plan 2016 – 2021. During this time, the annual allocation for flood defence schemes will more than double to €100m.

In addition to large-scale schemes, funding is available through the Minor Flood Mitigation Works and Coastal Protection Scheme to Local Authorities to address localised flooding in the Shannon Catchment and throughout the country. The recent review of the Scheme examined all the existing criteria with a view to strengthening and improving the operability of the Scheme. As a result, the upper financial threshold has now been increased significantly from €500,000 to €750,000 per project and for the first time, farm yards/buildings will be included as commercial premises in all categories. Other improvements include lowering the benefit to costs ratio for smaller projects, improved benefit allowances for different property types and updated methodology for diverted journeys due to flooding.

In January 2016, the Government took decisive action to support the existing plans in place to address flooding on the Shannon and established the Shannon Flood Risk State Agency Co-ordination Working Group to enhance ongoing co-operation of all State agencies involved with the River Shannon and to add value to the CFRAM Programme.

The Shannon Flood Risk State Agency Co-ordination Working Group has taken the decision to consider developing a plan for strategic maintenance works on the River Shannon that will complement the Group’s Work Programme and the specific measures that are identified for the areas at risk in the CFRAM Shannon Flood Risk Management Plan. The Group has established a sub-committee to explore all of the necessary legal, environmental, technical and other considerations that arise in bringing forward both short term and long term proposals that can benefit flood risk management.

Capital Expenditure Programme

Ceisteanna (176)

Niall Collins

Ceist:

176. Deputy Niall Collins asked the Minister for Public Expenditure and Reform the details and county location of capital projects announced by his Department in March, April, May and to date in June 2017. [29787/17]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, the Government’s overall Capital Plan was published in September 2015.  The details and county location of capital projects announced under the Capital Plan since March 2017 can be provided by the relevant Ministers and I understand that the Deputy has put this question down to all Ministers.

Departmental Staff Data

Ceisteanna (177, 178, 179, 180)

Mick Wallace

Ceist:

177. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the number of Civil Service clerical officers in full-time employment in his Department as of 31 May 2017, by county, in tabular form. [29854/17]

Amharc ar fhreagra

Mick Wallace

Ceist:

178. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the number of full-time Civil Service clerical officers in his Department who have retired, resigned or been promoted from 1 January 2015 to 31 May 2017, by county, in tabular form. [29870/17]

Amharc ar fhreagra

Mick Wallace

Ceist:

179. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the number of full-time Civil Service clerical officer appointments made in his Department from 1 January 2015 to 31 May 2017, by county, in tabular form. [29896/17]

Amharc ar fhreagra

Mick Wallace

Ceist:

180. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the number of temporary Civil Service clerical officer appointments made in his Department from 1 January 2015 to 31 May 2017, by county, in tabular form. [29912/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 177 to 180, inclusive, together.

I can confirm that the recruitment of Temporary Clerical Officers "TCOs" and Clerical Officers "COs" in my Department, is controlled by the relevant circulars issued by my Department.

My Department is also responsible for the National Shared Services Office "NSSO" and the Office of Government Procurement "OGP" and I have provided the information in relation to these organisations separately.

Please find in tabular form information on the number of temporary and permanent clerical officer appointments made in my Department between 1 January 2015 to 31 May 2017.

-

Department of Public Expenditure and Reform

National Shared Services Office

Office of Government Procurement

Clerical Officer

10

345

41

Temporary Clerical Officer

0

84

-

Please find in tabular form information on the number of full time civil service clerical officers in his department that have either retired, resigned or been promoted from 1 January 2015 to 31 May 2017, by county, in tabular form.

Department of Public Expenditure and Reform

National Shared Services Office

Office of Government Procurement

Retired

3

9

0

Resigned

2

50

2

Promoted

4

40

4

Please find in tabular form information number of civil service clerical officers in full time employment in his department as of 31 May 2017 by county, in tabular form.

-

Department of Public Expenditure and Reform

National Shared Services Office

Office of Government Procurement

Dublin

(26 Full Time/12 Worksharers) 38 in total

258

37

Offaly

-

53

-

Kerry

-

71

-

Sligo

-

-

1

Cork

-

-

1

Limerick

-

-

1

Meath

-

-

1

Clare

-

2

Galway

-

48

Total

38

432

41

Minor Flood Mitigation Works and Coastal Protection Scheme Expenditure

Ceisteanna (181)

Tom Neville

Ceist:

181. Deputy Tom Neville asked the Minister for Public Expenditure and Reform the status of coastal defence work for a clubhouse (details supplied) in County Limerick; and if he will make a statement on the matter. [30090/17]

Amharc ar fhreagra

Freagraí scríofa

The Office of Public Works (OPW) Minor Flood Mitigation Works and Coastal Protection Scheme is a scheme under which the OPW may provide funding assistance and support to local authorities to undertake viable, cost effective, localised and small scale flood relief works in their administrative areas.

An application for funding under the Minor Flood Mitigation Works and Coastal Protection Scheme for this area has been received from Limerick City and County Council and is currently under consideration. Further information has been requested from the Council and is awaited in order to complete the assessment of the application.

I would point out that the Minor Works scheme is not a grant scheme for individual property or home owners and all proposals for works and funding must come from the local authority.

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