Tuesday, 11 Jul 2017

Written Answers Nos. 161-175

Help-To-Buy Scheme Administration

Ceisteanna (161)

Donnchadh Ó Laoghaire

Ceist:

161. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance the procedures in place under the help to buy scheme when the awarding contractor has been given money or grants on behalf of the applicant in order that the applicant can be refunded the money or take it in credit with regard to the deposit; the protections in place in those circumstances in the event of the awarded contractor receiving money for the grant and then being unable to pay the applicant or give credit on the deposit, becoming insolvent, taken under receivership or closure of business. [32609/17]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, the purpose of the Help to Buy (HTB) incentive is to help first-time buyers fund their first home, whether purchased from a builder or self-built. The legislative provisions for HTB are set out in Section 477C Taxes Consolidation Act 1997. Those provisions include the following:

- the obligation on contractors that receive a payment in respect of a claimant to ‘treat the appropriate payment as a credit against the purchase price of the qualifying residence’ (section 16b);

- the conditions to ensure that eligibility for the HTB refund is maintained for 5 years (section 17);

- the obligation to repay a HTB payment to Revenue where a claimant or contractor (as appropriate) is unable to meet any of the HTB conditions, which include that the qualifying residence is to be purchased within 2 years (section 18); and

- that Revenue can raise an assessment on a claimant or contractor (as appropriate) where a HTB payment is not repaid to Revenue (section 20).

Consequently, there is an obligation on any qualifying contractor, in receipt of HTB payments to their bank account in respect of house purchases in the period from 1 January 2017 to 31 December 2019, to

1. provide a house for the HTB claimant within 2 years, and

2. give the HTB claimant credit for the value of the HTB payment received from Revenue as part of their deposit.

Regarding the safeguards in place to protect the Exchequer from contractors who fail to meet the conditions of the HTB incentive; In the first instance all qualifying contractors must hold a tax clearance certificate to certify that they are fully tax compliant, and they must also meet all of the requirements of Relevant Contracts Tax. In addition, if a qualifying contractor is unable to provide a house for the HTB claimant, then he, she or it is required to refund the HTB payment received to Revenue. If the payment is not refunded, Revenue can raise an assessment. If the assessment is unpaid, the amount of the refund and any interest thereon constitutes a charge on the contractor’s freehold or leasehold estate or interest in the land on which the qualifying residence was to be built and remains so until it is fully paid.

I am advised that Revenue provides a range of information about the operation of the HTB incentive on their website, including detailed applicant and contractor guides. Furthermore, Revenue has been involved in discussions and meetings with various stakeholders about the operational procedures for HTB, including the Construction Industry Federation and the Law Society. In these discussions, Revenue highlighted, in particular, the obligations on contractors to provide the first home for the HTB claimant within two years or that there would be a clawback of the HTB payments made.

I am further advised that, as part of its overall administration of the HTB incentive, Revenue is operating risk based compliance checks to ensure that the qualifying conditions of the scheme are met by qualifying contractors and claimants.

Departmental Expenditure

Ceisteanna (162)

Brendan Howlin

Ceist:

162. Deputy Brendan Howlin asked the Minister for Finance the level of expenditure by his Department or organisations under the aegis of his Department for each of the past five years on photography, advertising, communications advice, public relations, website development, media interview training and preparation; the events, campaigns or policies to which this expenditure related; the company or person to which such payments were made, in tabular form; and if he will make a statement on the matter. [32651/17]

Freagraí scríofa

Minister for Finance

The total costs for my department, and the details of the events, campaigns, or policies to which the expenditure related are outlined in a table:

Photography
Year	Supplier	Expenditure €	Event, Campaign, or Policy
2017	Sherwood photography	758	Department of Finance graduation ceremony for in-house Diplomas and the Refund of Fees attended by Minister Noonan
2016	Brendan Lyon Photography	105	Irish Institute of Training and Development (IITD) award photo
2015	Maxwell Photography Ltd	463	Department of Finance Learning and Development Recognition of Awards Ceremony, attended by Minister Noonan
2015	Events Portraits Ltd	96	Irish Institute of Training and Development (IITD) award to Department of Finance for "Best Learning and Development Organisation"
2014	Maxwell Photography Ltd	511	Department of Finance graduation ceremony for the Diploma in Taxation Policy and Practice, the Diploma in Project Management, and the Refund of Fees attended by Minister Noonan
2012	Maxwell Photography Ltd	285	Signing ceremony for Double Taxation Agreement with Switzerland: Minister of State Hayes and the Swiss Ambassador
2012	Maxwell Photography Ltd	148	Signing ceremony for Double Taxation Agreement with Uzbekistan
Advertising
Year	Supplier	Expenditure €	Event, Campaign, or Policy
2017	The Irish Times	922	To communicate the new beneficial ownership obligations of S.I. 560 of 2016 to companies, particularly those companies who were not on the Company Registration Office’s mailing list
2017	Independent Newspapers marketing	1,111	To communicate the new beneficial ownership obligations of S.I. 560 of 2016 to companies, particularly those companies who were not on the Company Registration Office’s mailing list
2017	The Irish Examiner	375	To communicate the new beneficial ownership obligations of S.I. 560 of 2016 to companies, particularly those companies who were not on the Company Registration Office’s mailing list
2015	Mediavest	7,182	Local Property Tax Review advertisements in Irish Times, Irish Independent and Irish Examiner
2015	Financial Times	12,300	Advertisement for the position of Governor of the Central Bank
2014	Mediavest	130	Notice re winding up of SAT/ICAROM (Insurance Corporation of Ireland) in Irish Daily Mail
2014	Public Appointments Service	2,787	Recruitment for the position of Head of International & EU Division in the Sunday Business Post and Sunday Times online
2013	Public Appointments Service	5,206	Recruitment of Chief Finance and Operations Officer in Sunday Times, Sunday Business Post, ACCA and ACA e-zine
2013	Public Appointments Service	3,796	Recruitment for position of Economist – advert in the Irish Times
2013	Brindley Advertising	687	Notices of the Official Languages Act and Scheme in Foinse
2012	Public Appointments Service	33,168	Recruitment of Chief Economist, Head of Banking Policy and Secretary General of the Department of Finance in the Sunday Times, Sunday Business Post, Irish Times and Financial Times
2012	Brindley Advertising	14,255	Notices/Advertisements re Anglo, INBS and Credit Institutions Stabilisation Act as required by EU Directive in Irish media (Irish Times and Irish Examiner)
Communications advice	Public Relations	Media interview training	and preparation
Year	Supplier	Expenditure €	Event, Campaign, or Policy
2017 & 2016	Language Communications Ltd	Net cost zero as costs being refunded by the banks.	As part of a range of competition measures agreed with the European Commission under their respective EU-Restructuring plans, AIB and Permanent TSB are required to provide funding to a public awareness campaign (such campaign to be facilitated by Ireland through an appropriate state body) to raise awareness and promote customer switching. As such the department is currently managing a contract for the provision of Research, Design and Media Buy Services (Public awareness and customer switching campaign) in retail banking markets. This is being refunded in its entirety by the two banks.
2016	Carr Communications	63,224	Following the Government decision of 13 May 2015 on mortgage arrears, the department was asked to coordinate the development and implementation of a communications strategy around the Government-funded and other available supports for borrowers in arrears. The duration of the contract was from October 2015 until June 2016. Responsibility for the mortgage arrears publicity campaign now rests with the Abhaile Mortgage Arrears Resolution Service.
2015	ICAN Ltd	50,519	Under the Action Plan for Jobs 2015, action 110 required an "advertising campaign to leverage support for and drive utilisation of the Supporting SMEs Online Tool and increase awareness of the existence of State supports for business." This advertising campaign was co-ordinated by the SME Communications Group a sub-group of the SME State Bodies Group which is chaired by the department.
2015	Carr Communications	35,038	Following the Government decision of 13 May 2015 on mortgage arrears, the department was asked to coordinate the development and implementation of a communications strategy around the Government-funded and other available supports for borrowers in arrears. The duration of the contract was from October 2015 until June 2016. Responsibility for the mortgage arrears publicity campaign now rests with the Abhaile Mortgage Arrears Resolution Service.
2014	ICAN Ltd	27,684	Creative strategy, production and burst 1 of campaign to increase awareness of the Supporting SME online tool on social media
Website Development
Year	Supplier	Expenditure €	Event, Campaign, or Policy
2015	Strata 3	3,690	Testing and review of website
2014	Strata 3	9,255	MTES Placeholder site
2014	Strata 3	16,167	Live implementation of website
2013	Strata 3	24,823	Design of Website and CMS

With respect to the eighteen bodies under the aegis of my Department, I have been advised that four have not incurred any expenditure for each of the past five years on items identified by the Deputy. These are the Credit Union Advisory Committee, the Disabled Drivers Medical Board of Appeal, the Financial Services Ombudsman Council and the Irish Financial Services Appeals Tribunal.

It was not possible for the Central Bank of Ireland and the National Treasury Management Agency to provide the information sought in the time available and therefore I will make arrangements to provide the outstanding information in line with Standing Orders.

The remaining twelve bodies have provided the information sought and this is set out in a further table.

Table ctg.

Body	Expenditure, events, campaigns, policies	Company/person
Comptroller & Auditor General	Advertising: 2012: €2,245.36 Senior Auditor competition 2013: €3,095.01 Job advertisement 2014: €600.00 Job advertisement 2017: (to end of June) €4,305 Advertising budget Website development: 2017: (to end of June) €5,305.91 Website Development	Public Appointments Service Educate Limited Irish Jobs.ie Educate Limited Linked in Ptools software
Credit Review Office	Advertising Communications Advice: 2013: €5,123 €1,599 €170,771 2014: €3,690 €1,599 €235,048 €685 2015: €1,224 €1,599 €275,104 €3,695 €1,666 2016: €15,363 €3,198 €132,121 €178 2017: €2,460 €1,599 €116,841 None of these costs are related to a specific campaign, but in raising awareness of the Credit Review Office to target audience through the media.	Ashville The Phoenix iCan Ashville The Phoenix iCan Snap 30 Ashville The Phoenix iCan Small Firms Association RGDATA Ashville The Phoenix iCan Image Solutions Ashville The Phoenix iCan
Credit Union Restructuring Board (ReBo)	Photography: (Photography was in virtually all cases coinciding with the completion of a formal merger process) 2013: € 590.40 2014: € 1,266.90 2015: € 3,868.35 2016: €442.80 €440 2017: €150 Public Relations: (training) (PR advice / training concerned the initial launch of the organisation and also some further general assistance / advice on matters within the remit of ReBo – there was no campaign as such.) 2015: € 12,547 2017: € 15,920	Maxwell Maxwell Maxwell Maxwell Bartlomiej Szyk Bartlomiej Szyk The Communications Clinic The Communications Clinic
Financial Services Ombudsman Bureau	Photography: 2012: €150 Annual Report & Website 2013 €240 Annual Report & Website 2014: €120 Annual Report & Website 2015: €120 Annual Report & Website 2016 €418 Annual Report & Website Advertising: 2012: €394 IPA Diary €8,710 Phonebook, State Directory, Internet Listing 2013: €394 IPA Diary €8,105 Phonebook, State Directory, Internet Listing 2014: €8,104 Phonebook, State Directory, Internet Listing 2015: €394 IPA Diary €8,104 Phonebook, State Directory, Internet Listing €1,830 Recruitment Advert 2016: €197 IPA Diary €10,086 Phonebook, State Directory, Internet Listing € 3,019 Recruitment Advert € 1,622 Recruitment Advert 2017: €134 IPA Diary €7,789 Phonebook, State Directory, Internet Listing €5,001 Recruitment Advert Communications Advice: 2015: €2,091 Communication Support & Advice 2016: €7,232 Communication Support & Advice 2017: €2,405 Communication Support & Advice Public Relations: 2015: €5,123 PR Consultancy 2017: €3,137 PR Consultancy Website Development: 2013: €5,166 Redesign of website 2014: €6,593 Design online complaint form	Des McMahon Photography Des McMahon Photography Des McMahon Photography Des McMahon Photography Fennell Photography IPA FCR Media Ltd IPA FCR Media Ltd FCR Media Ltd IPA FCR Media Ltd Media Vest IPA FCR Media Ltd Media Vest Media Vest IPA FCR Media Ltd Media Vest Keating & Associates Keating & Associates Keating & Associates Keating & Associates Keating & Associates Fusio Ltd Fusio Ltd
Investor Compensation Company	Photography: 2012: €273.52 Board director portrait(s) for annual report 2013: €144.87 Board director portrait(s) for annual report 2014: €289.74 Board director portrait(s) for annual report 2015: €463.11 Board director portrait(s) for annual report 2016: €307.50 Board director portrait(s) for annual report Advertising: 2012: €23,800.67 National Press adverts for the failures of Custom House Capital Limited and Bloxham Stockbrokers as required by s.32(1)(ii) of Investor Compensation Act, 1998 2013: €8,237.33 National Press adverts for the failure of Irish Bank Resolution Corporation Limited as required by s.32(1)(ii) of Investor Compensation Act, 1998 2014: €3,684.98 National Press adverts for the failure of Berehaven Credit Union Limited as required by s.32(1)(ii) of Investor Compensation Act, 1998 2016: €3,836.26 National Press adverts for the failure of Asset Management Trust Limited as required by s.32(1)(ii) of Investor Compensation Act, 1998 2017: €3,459.57 National Press adverts for the failure of Rush Credit Union as required by s.32(1)(ii) of Investor Compensation Act, 1998 Website Development: 2013: €2,269.35 Online e-invoice and dd sign-up portal 2014: €15,928.50 Redevelopment of website with customer account management portal 2015: €1,353.00 Routine enhancements 2016: €492.00 Companies Act, 2014 necessitated enhancements 2017: €6,150.00 Enhancements to customer management portal of website (incl. for GDPR purposes) Interview training and preparation: 2012: €450.00 Media Training for new CEO	Fennell Photography Fennell Photography Fennell Photography Fennell Photography Fennell Photography Brindley Advertising Brindley Advertising Brindley Advertising Brindley Advertising Brindley Advertising Dragnet Systems Limited Webtrade Limited Webtrade Limited Webtrade Limited Webtrade Limited Carr Communications Limited
Irish Bank Resolution Corporation	Communications advice: 2013: €95,848.08 Media and Communications advisory services €10,356.60 Design Layout for letterheads, customer letters etc. €49,200 Marketing consultancy services €21,830.04 Media monitoring €7,150.13 Various 2014: €109,662.50 Media and communications advisory services €18,290.10 Design Layout for letterheads, customer letters etc €25,298.45 Media monitoring €13,132.03 Various 2015: €94,513.20 Media and Communications advisory services €4,956.90 Design Layout for letterheads, customer letters etc: €6,294.58 Media monitoring: €9,909.67 Various 2016: €13,400 Media and Communications advisory services 2017 (to date): €1,000 Media and Communications advisory services Public Relations: 2014: €25,496.60 Advices on reports, media queries etc 2015: €45,775.46 Advices on reports, media queries etc: 2016: €8,266.83 Advices on reports, media queries etc 2017 (to date): €221.40 Advices on reports, media queries etc Website Development: 2013: €7,380 Website hosting and amendments to website 2014: €10,682.55 Website hosting and amendments to website €7,318.50 Software licences for website: 2015: €1,537.50 Website hosting and amendments to website €3,659.25 Software licences for website 2016: €1,958.78 Website hosting and amendments to website €10,977.75 Software licences for website 2017 (to date): €1,958.78 Website hosting and amendments to website Note: The information provided is for the period from 2013 (post liquidation) to date. Information prior to the appointment of the Special Liquidator in 2013 is not readily available and the compilation of this information would incur a significant expense given that all legacy systems are no longer operational.	FTI consulting Ireland Designbank Limited True Blue Communications Ltd Kantar Media Other FTI consulting Ireland Designbank Limited Kantar Media Other FTI consulting Ireland Designbank Limited Kantar Media Other FTI Consulting FTI Consulting Drury Porter Novelli Drury Porter Novelli Drury Porter Novelli Drury Porter Novelli Continuum Tech Continuum Tech PT Tools Continuum Tech PT Tools Continuum Tech PT Tools Continuum Tech
Irish Fiscal Advisory Council	Advertising: 2013: €553.50 Job advertising 2015: €1,160.99 Job advertising 2016: €3,003.02 Job advertising 2017 (to end of June): €349.00 Job advertising Communications advice: 2015: €2,429.48 (Peer Review)	GTI Media Ltd Warwick University GTI Media Ltd Inomics Irish Times Inomics Peer Review Group members: Lars Jonung Iain Begg Michael G Tutty
National Asset Management Agency	(NAMA’s communications team is supported by an external service provider, Gordon MRM, which provides a press office service to NAMA and to the NTMA. The costs for this external service will be included in the NTMA data. NAMA reimburses the NTMA in respect of the costs of these services attributable to NAMA.) Advertising: 2012: €4,200 Advertising Leaflets €18,400 Advertising in the Irish Times and Irish Independent re expressions of interest for “Project Wave 2013: €1,000 Advertising Leaflets Public Relations: 2012: €1,200 PR Consultancy 2016: €1,300 SDZ/Residential delivery media briefing 2017: € 857 Annual report press release Website Development: 2012: €3,300 Provision of website servers & licenses 2014: €4,800 Maintenance and development of NAMA website €18,600 Maintenance and development of NAMA website 2015: €1,400 Provision of website servers & licenses €17,700 Maintenance and development of NAMA website 2016: €4,700 Maintenance and development of NAMA website 2017: €1,722 Maintenance of NAMA Website	One Productions (W1 Design) Mediaworks One Productions (W1 Design) Stakeholders Communications Aviva Stadium Aviva Stadium Tibus Simply Zesty Room Three Design Tibus Room Three Design Room Three Design Communicraft
Office of the Revenue Commissioners	Photography: 2012: €1,373.00 Photographic Services 2017 to 30th June: €1,422 PHOTOGRAPHY SERVICES Advertising 2012: €960,453 Media Agency €49,571 State Directory €33,579 Leaflet Display Brochure Display 2013: €1,421,645 Media Agency €147,579 Advertising €49,571 State Directory 2014: €1,406,538 Media Agency €49,571 State Directory €35,068 Statutory Notices 2015: €781,990 Media Agency €49,571 State Directory €39,356 Statutory Notices 2016: €889,407 Media Agency €47,025 State Directory €42,804 Leaflet Display Brochure Display 2017 (to 30th June): €519,643 Media Agency € 22,162 State Directory € 9,935 Media Agency Website development: 2016: €888,414 Revenue.ie Website redesign €114,240 Website Content Management System software €34,043 Website survey software €24,700 Visible Thread 2017: to 30th June: € 29,292 Clarity Grader Software € 24,773 MicroSoft Azure Commitment €364,244 Revenue.ie Website redesign - Information Architecture design, Search optimisation, screen template design & build, User experience & user interface design & build. Accessibility design & build. Software testing Media interview training and preparation: 2013: €10,100 Media Interview Training 2015: €450 Media Interview Training 2016: €22,632 Media Interview Training 2017 to 30th June : €1,625 Media Interview Training €492 Media Interview Training	PRESS 22 MAXWELL PHOTOGRAPHY LTD Brindley Advertising Ltd FCR media Ltd Inform Display Systems Ltd Brindley Advertising Ltd Mediavest Ireland Ltd FCR media Ltd Mediavest Ireland Ltd FCR media Ltd Iris Oifigiúil Mediavest Ireland Ltd FCR media Ltd Iris Oifigiuil Mediavest Ireland Ltd FCR media Ltd Inform Display Systems Ltd Mediavest Ireland Ltd FCR media Ltd Mediawatch Ltd Deloitte & Version 1 Zengenti Qualtrics Clarity Grader Software Deloitte, Accenture & Version 1 Visible Thread CDW UK Carr Communications Carr Communications The Communications Clinic Carr Communications The Communications Clinic
Social Finance Foundation	Photography: 2013: €159.90 Board Photo 2015: €461.25 Photos at launch of ‘Credit not Debt’ report 2016: €362.85 Board meeting with Minister Noonan Communications advice: 2014: €11,193.00 Development of Communications and Marketing Strategy 2015: €3,690.00 Launch of Annual Report and ongoing communications support €5,596.50 Development of Communications and Marketing Strategy Public Relations: 2015: € 17,378.20 Support for Personal MicroCredit Project (PMC) and promotion of social finance 2016: €34,255.50 Support for Personal MicroCredit Project (PMC) and promotion of social finance	Sherwood Photography Tommy Clancy Maxwells Photography Montague PR Q4 PR Montague PR John Gallagher John Gallagher
Strategic Banking Corporation of Ireland	Photography: 2015: €180 SBCI Breakfast Conference Sheraton Athlone 2016: € 1,845 Bibby On-Lender Launch € 430.50 2015 Annual Report Launch € 184.50 Bibby On-Lender Launch € 553.50 Fexco On-Lender Launch € 255.40 Event 25.02.16 € 123.00 Tom McAleese € 698.20 SBCI event € 553.50 Bank briefing Advertising: 2015: €1,716 ISME Yearbook & Diary 2016 €3,075 Annual conference 2015 €9,225 Online portal - Guru Events € 372 Taking Care of Business Event 2015 €2,460 Conference sponsorship € 2,004.90 Ploughing Championship € 28,739.00 SBCI launch event € 19,807.00 SBCI launch campaign ATL € 818.00 SBCI business cards € 910.00 SBCI pull up banner € 5,993.00 Radio phase 2 € 10,152.00 Launch campaign RTE € 10,762.00 SBCI research €221,368.00 Media costs €1,624.00 Infographic for results announcement € 2,041.80 SBCI DL leaflet € 2,933.60 SBCI spider banners € 4,647.90 Media costs - Google IRE € 18,500.00 RTE phase 2 media € 84,685.70 SBCI phase 2 media € 855 All Ireland Business Summit € 2,979 RGDATA annual € 2,500 Sales Institute event 2016: € 3,013.50 ISME Yearbook & Diary 2017 € 4,858.50 Better Business € 3,628.50 Chambers € 2,460.00 First Citizen agri product launch € 922.50 SBCI 1 year anniversary video € 2,767.50 SBCI case study € 1,845.00 Fexco On-Lender Launch € 2,300.00 Services to May 31st 2016 € 3,751.50 Business Plus – advert € 834.00 Hotel Hire and sponsorship € 2,290.00 Castletroy park event € 3,075.00 Chartered Accountants Ireland Sponsorship € 280.00 Conference Clarion Cork € 3,000.00 DCOC Business Breakfast € 1,500.00 Finance briefing 15.02.16 €11,070.00 Online portal - Guru Event € 1,296.20 Herizon Event in RDS € 2,189.40 Ploughing Championship € 3,121.00 SBCI phase 2 media € 1,605.20 Sunday business post € 25,101.80 2016 planning € 535.10 SBCI infographic A5 leaflet € 15,437.40 SBCI research groups € 2,214.00 Additional research analysis € 504.30 Dream Small release €13,379.90 2016 Radio € 2,287.80 Radio re-record & new event € 3,078.10 Social Media Pilot € 5,676.50 Digital awareness campaign € 717.80 Media € 2,091.00 DL Brochure -copy update € 15,803.50 SBCI Media activity May - June € 68,711.00 May-June Activity - Media € 1,697.40 Waterford radio event € 695.80 SBCI keyrings € 15,034.30 Q4 Campaign Planning & Development € 3,025.00 SBCI key rings & pens € 371.00 Farbic display stand € 3,720.80 SBCI Key Rings & Pens Re-Order € 1,380.30 Digital & Social activity July & August € 1,613.00 SBCI Fabric Display Stand € 6,001.20 Digital & social activity Jul & Aug € 246.00 SBCI Chamber Diary Advert € 6,875.70 2017 Strategic Planning € 2,244.80 Q4 planning analysis € 66,094.20 Radio & Digital € 600.00 Kilashee House Hotel event € 2,000.00 Mid-West Funding for Business € 289.70 Burratty Castle venue € 1,599.00 ISME National Conference € 3,075.00 Conference sponsorship € 399.80 Seminars General Sponsorship € 4,821.60 AD in special SME supplement - Money Plus € 1,808.10 Annual conference report € 575.00 Wexford Business Expo 2016 € 123.00 Finance expo € 132.30 Business Expo 2016 € 1,230.00 BizExpo – Citiwest € 2,445.38 Ploughing Championship Website Development: 2015: € 10,531 Web Development € 7,688 Web and content plan 2016: € 3,653.10 Website updates € 8,769.90 Design Concepts & Web Development	Molloy Photography Ballywire Media Fennell Photography Fennell Photography Fennell Photography Fennell Photography Fennell Photography Fennell Photography Fennell Photography Ashville Media Group Chartered Accountants Ireland Fund SME c/o Guru Expos & Events Ltd Health & Safety Authority IBEC LIMITED Irish International Irish International Irish International Irish International Irish International Irish International Irish International Irish International Irish International Irish international Irish international Irish international Irish international Irish international Irish international Mespil Solutions RGDATA The Sales Institute ASHVILLE MEDIA GROUP LTD ASHVILLE MEDIA GROUP LTD ASHVILLE MEDIA GROUP LTD Ballywire Media Ballywire Media Ballywire Media Ballywire Media Berkely Research Group BUSINESS PLUS Carlow Chamber of Commerce Castletroy Hotel CHARTERED ACCOUNTANTS IRELAND Clarion Hotel Dublin Chamber of Commerce Dublin Chamber of Commerce Fund SME c/o Guru Expos & Events Limited Herizon Irish International Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Irish international Network Ireland Shannon Chamber of Commerce Shannon Chamber of Commerce The Irish Small and Medium Enterprises Association The Irish Small and Medium Enterprises Association The Irish Small and Medium Enterprises Association The Sunday Business Post The Sunday Business Post Wexford Chamber of Commerce Wexford Chamber of Commerce Wexford Chamber of Commerce Whatswhat.ie WRC Irish International Irish International Point Blank Digital RED DOG DESIGN
Tax Appeals Commission	Advertising: 2016: €5,596.50 National Newspaper Adverts Website Development: 2016: €7,448.57 Developed a website	Mediavest Webtrade Ltd.

Tax Code

Ceisteanna (163)

Brendan Howlin

Ceist:

163. Deputy Brendan Howlin asked the Minister for Finance his plans to introduce a soft drinks industry levy; if the funds raised will be ring-fenced to fund childhood anti-obesity measures; and if he will make a statement on the matter. [32665/17]

Freagraí scríofa

Minister for Finance

As outlined in Budget 2017, it is intended to introduce a tax on sugar sweetened drinks in April 2018, which will coincide with the introduction of a similar tax in the UK.

A public consultation process opened on Budget night seeking the views of interested parties on the make up of the tax which ran until 3rd January 2017. Some 30 submissions were received, all of which are being considered and are also available to view on my Department's website together with the public consultation document.

An implementation team, made up of officials from Revenue and my Department, continue to progress the development of the tax. The implementation team has had ongoing engagement with stakeholders, including representatives of the soft drinks industry, and I expect further details around the tax to be announced as part of Budget 2018.

In relation to ringfencing, I am generally not in favour of the hypothecation of taxes as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.

Proposed Legislation

Ceisteanna (164)

Seán Sherlock

Ceist:

164. Deputy Sean Sherlock asked the Minister for Finance the likely publication date for the legislation required to give effect to EU Directive 2014/65/EU on markets in financial instruments MiFID II into law, in view of the fact that the official date for transposition of that directive into law was 3 July 2017; and if he will make a statement on the matter. [32767/17]

Freagraí scríofa

Minister for Finance

The European Union's cornerstone for financial markets legislation is the Market in Financial Instruments Directive (MiFID) which provides the framework for investment service providers. The original directive, MiFID I, has been updated and MiFID II was due to be transposed into Irish law by the 3rd of July.

MiFID II is voluminous and complex legislation and to date only one Member State has communicated full transposition measures to the European Commission. We, along with a number of other Member States, have not meet the transposition date of the 3rd of July for this Directive.

My officials are working closely with the Office of the Parliamentary Council and the Central Bank of Ireland to complete the work on the transposing regulations as quickly as possible. It is expected that the work on the transposing regulations will be completed in the coming weeks.

In the meantime, I intend to publish a Feedback Statement on the Public Consultation on national discretions in the Markets in Financial Instruments Directive in the coming days. This will publish the responses received to the Consultation, provide a summary of the responses to each of the questions posed and set out the decisions taken with regard to national discretions.

This will provide clarity to industry on the approaches we have taken on national discretions ahead of the publication of the MiFID transposing regulations in the coming weeks.

Proposed Legislation

Ceisteanna (165)

Seán Sherlock

Ceist:

165. Deputy Sean Sherlock asked the Minister for Finance the likely publication date for the legislation required to give effect to EU Directive 2015/2366/EU PSD2; and if he will make a statement on the matter. [32768/17]

Freagraí scríofa

Minister for Finance

Directive (EU) 2015/2366 (PSD2) was published in the Official Journal of the European Union on 23 December 2015. PSD2 is a maximum harmonisation directive, leaving only a small number of discretions for Member States.

The Department of Finance ran a public consultation on those national discretions from June to September last year. That consultation, along with the submissions received in response, can be found on the website of the Department.

Transposition of PSD2 is to be by way of statutory instrument under the European Communities Act 1972. The Department will continue to engage with stakeholders as the work on transposition progresses, and the transposition deadline of 13 January 2018 is expected to be met.

Pension Provisions

Ceisteanna (166, 167)

Sean Fleming

Ceist:

166. Deputy Sean Fleming asked the Minister for Finance the position regarding trivial pensions in which the amount invested is less than €20,000; if these can be cashed in; the rules in circumstances in which this fund is required by the person concerned for urgent purposes; the rules in circumstances in which the pension was taken out over 20 years ago; and if he will make a statement on the matter. [32932/17]

Sean Fleming

Ceist:

167. Deputy Sean Fleming asked the Minister for Finance the position regarding persons with small pension funds; the rules regarding the location in which a person can cash these in if the person is under 60 years of age; and if he will make a statement on the matter. [32935/17]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 166 and 167 together.

I am advised by Revenue that the commutation of small or trivial pensions is allowable in certain limited circumstances.

Where, on retirement and following the payment of any lump sum the total of all funds available for pension benefits is less than €20,000 Revenue will not object to the payment of a once off pension to an individual instead of the purchase of an annuity, once the agreement of the scheme beneficiaries and trustees has been received. The quantum of retirement benefits from all sources must be taken into account when calculating this €20,000 limit. The applicable rates of tax, USC and PRSI are those applicable to any other pension payment.

Full commutation is also permitted by Revenue on triviality grounds where, on retirement, the aggregate pension benefits payable to an employee under all schemes related to an employment do not exceed the value of €330 per annum. Tax on the chargeable part of such payments is at a rate of 10%, under Schedule D Case IV.

Both of these options are only available at a point where an individual is entitled to draw down benefits from a scheme, i.e. where they reach the retirement age set out in the conditions of their scheme, or are entitled to access benefits for other reasons, such as serious ill health.

Should an individual move their pension fund to another jurisdiction they may be subject to different draw down rules depending on the jurisdiction; however any transfer of pension funds offshore must be for bona fide reasons and must not contravene tax legislation or undermine pension tax policy.

Moving pension funds off-shore in an effort to circumvent the requirements of Irish pension tax legislation may fall foul of the conditions under which a pension scheme was approved by the Revenue Commissioners as an exempt approved scheme or the conditions under which a Personal Retirement Savings Account (PRSA) product received Revenue approval. This could result in the withdrawal of the approval of an occupational pension scheme in accordance with the provisions of section 772(5) of the Taxes Consolidation Act (TCA) 1997 or the withdrawal of the approval of the PRSA product under section 787K (3) and (4) TCA 1997. Any such withdrawal of approval could trigger significant tax liabilities on the sums moved off shore and the withdrawal or claw back of tax reliefs. Moreover, in such cases and depending on the circumstances and the motivation of the individual concerned, the possibility also arises that such transactions may also fall foul of the legislation designed to counter tax avoidance transactions.

The essential feature of any pension policy is to provide income for an individual in retirement. The rationale for giving tax relief for contributions to various types of retirement products is to encourage savings over the long term so that individuals will have an income in old age. There are a number of reasons why pre-retirement access to benefits from pension plans or schemes is not permitted, the principal one being that these arrangements are designed to be long term savings vehicles based on the principle that the benefits will be maintained to help fund an adequate income in retirement.

Given that the correct treatment of a pension in situations such as this depends on the facts and circumstances of the case, if the Deputy has concerns regarding the fund of a particular individual it may be advisable to contact Revenue directly outlining the facts of the case to obtain a comprehensive answer on the available options.

Sale of State Assets

Ceisteanna (168)

Aindrias Moynihan

Ceist:

168. Deputy Aindrias Moynihan asked the Minister for Finance further to the recent sale of over 25% of the State's equity in a bank (details supplied), the estimated costs involved; and the costs by the individual service providers engaged. [33080/17]

Freagraí scríofa

Minister for Finance

The Deputy should be aware that in line with the State agreements with AIB, all fees incurred by the State in relation to an IPO transaction will be paid by the bank.

Following a successful transaction, fees are payable to the selling syndicate of investment banks and are proportionate to the value of the transaction. The fees that have been negotiated by my officials are approximately 0.4% of the value of the base deal size (€3 billion), which gives a figure of approximately €12 million. This is very competitive by reference to comparable transactions in Europe. The fee is split across all appointed syndicate banks and as such the number of firms involved (also within precedent), does not affect the overall fee level payable.

Fees will also be payable to our independent financial advisor, Rothschild & Sons, communications advisers Gordon MRM and Citigate Dewe Rogerson and our legal advisers, William Fry. Together with some other seller related and underwriter expenses, these fees in total were estimated to be approximately €4m. I will be in a position to disclose a breakdown of exact fees paid to each service provider when all related invoices have been received and processed.

As is normal practice, details of the fees paid by my Department to such parties are disclosed on an ongoing basis under the procurement section of the Department's website: http://www.finance.gov.ie/who-we-are/financials/consultancy/consultancy/

In addition to the above, AIB has also incurred its own fees and expenses in relation to the initial public offering which include broker, corporate advisory, accounting and legal fees. These fees and expenses amount to €25 million, are a matter for the board and management of AIB, and are borne by the company directly. Full details are disclosed as part of their published prospectus on p661. The prospectus is available on the AIB Investor Relations website at the following link: https://aib.ie/content/dam/aib/investorrelations/docs/protected/AIB-Prospectus-final-12062017.pdf

Public Sector Pay

Ceisteanna (169)

Jack Chambers

Ceist:

169. Deputy Jack Chambers asked the Minister for Public Expenditure and Reform when the pro rata increases given to all public servants in April 2017 will be given to those who retired after March 2012; and if he will make a statement on the matter. [32249/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

It is assumed that the Deputy is referring to the €1,000 increase in 2017 applicable to public servants on annualised basic salaries up to €65,000 under the Financial Emergency Measures in the Public Interest Act 2015. This increase which, under FEMPI 2015, is to take effect from 1 September 2017, was advanced to 1 April 2017 for most qualifying public servants.

Increases to higher-value salaries above €65,000 on 1 April 2017, being part-restoration of the July 2013 pay cuts impacting such salaries, could not and did not have any effect on pensions in payment due to the grace period protection of such pensions under the FEMPI 2013 Act.

In that context, I would point out that section 6.2 of the proposed Public Service Stability Agreement 2018-2020, which was published at the conclusion of the public service pay talks, indicates that, over the duration of that agreement if ratified, policy on public service pensions in payment will be guided by the following three elements:

First, the need to adopt an equitable approach to the various public service pensioner cohorts differentiated by date of retirement (in particular pre and post end-February 2012) is affirmed.

Second, for those who retired or will retire post end-February 2012, to the extent that they retired on reduced salaries for pension award purposes, they will receive pension increases in line with pay increases received by their peers currently in employment in accordance with the terms of the collective agreement.

Third, when alignment is achieved between pre and post end-February 2012 pensioners, as will happen progressively for salary ranges up to €70,000 in 2020 under the proposed collective agreement, pay increases will continue to benefit pensions in payment for the duration of the agreement.

This means that for the duration of the proposed agreement, and subject to its ratification, public service pensions in payment will increase in line with pay increases where necessary to ensure that those pensions are equal to the pensions being awarded to same-grade retiring staff.

Departmental Expenditure

Ceisteanna (170)

Joan Burton

Ceist:

170. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the actions his Department has taken to identify the hidden fiscal space to source savings across Departments; the targeted savings each Department is expected to identify, in tabular form; and if he will make a statement on the matter. [32373/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

Earlier this year I informed the Government of the new approach that will be taken to review current Departmental expenditure in advance of Budget 2018. Due to the stabilising of the public finances by Government we have moved from a budgetary cycle where cuts had to be made to one where moderate and sustainable expenditure growth is now planned over the medium-term. However, there are increasing and competing public service demands emerging which means that public expenditure policy must prioritise additional spending between multiple demands. The spending review process supports this.

Officials in my Department have been engaged in work on Spending Review 2017 since January of this year. The Mid-Year Expenditure Report (MYER), which is to be published in the coming weeks, will include a substantive overview of this process. Alongside the MYER, a series of papers will be published that will present the results of the analysis of the wide range of expenditure schemes and programmes that have been examined this year. This 2017 Review is the first in a three-year cycle of 'rolling', selective reviews that will examine all day-to-day Departmental spending by 2019. This reflects a change in approach from the 2011 and 2014 Comprehensive Reviews of Expenditure, which covered all Government expenditure in a single year.

The Spending Review process operates within the wider budgetary architecture and the medium-term expenditure framework, which supports sustainable expenditure policy, anchored by reference to the fiscal rules. The major challenge addressed by the process is to prioritise between policy initiatives to ensure resources are allocated to areas where they can have the greatest impact, while respecting the necessary parameters set by the overall budgetary limits.

The aim of the Spending Review process is not to reduce Departmental expenditure, but rather to examine existing spending within the overall budget constraints by reference to the principles of efficiency, effectiveness, sustainability and impact. The Deputy will appreciate that the systematic and detailed examination of baseline expenditure using available evidence and data can help attenuate the tendency to otherwise focus only on the incremental increase in expenditure in the Estimates each year which constitutes only a small proportion of the totality of overall public spending. The results of the Spending Review analysis will support budgetary decisions and facilitate the consideration of existing expenditure alongside budgetary proposals.

Public Procurement Regulations

Ceisteanna (171)

Mattie McGrath

Ceist:

171. Deputy Mattie McGrath asked the Minister for Public Expenditure and Reform the measures his Department has implemented to support SMEs in accessing the public procurement market; the steps that have been taken to allow Government bodies access procurement locally as promised in the programme for Government; and if he will make a statement on the matter. [32444/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

Public Procurement is governed by EU and National rules. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers the best value for money. It would be a breach of the EU rules for a public body to favour particular candidates on grounds such as organisation size, locality, nationality, etc. and there are legal remedies which may be used against any public body infringing these rules.

Meetings of the SME Advisory Group take place on a quarterly basis to address industry concerns. This group includes representatives of the Office of Government Procurement, Dept. of Enterprise and Innovation, Intertrade Ireland, Enterprise Ireland, IBEC, ISME, SFA, CIF and Chambers Ireland and is chaired at Minister of State level. There has been regular proactive engagement with SME Representative Bodies through this Group. A Communications Strategy subgroup has also been established to help increase awareness of potential opportunities and supports available for SMEs.

Members of the Oireachtas were briefed on Public Procurement in Leinster House last December by the then Minister for State Murphy and members of the Office of Government Procurement. In addition, regional public procurement briefings on SME access were held in February and May Cork, Galway, Louth and Cavan. A further briefing is taking place in Limerick today.

The OGP takes a balanced approach to delivering value for the taxpayer and supports SME access to public procurement as set out in Circular 10/14 - Initiatives to assist SMEs in Public Procurement - including by:

- Undertaking market analysis prior to tendering in order to better understand the range of goods and services on offer; market developments and innovation; what commercial models are available; the competitive landscape; and the specific capabilities of SMEs etc.

- Setting proportionate eligibility requirements, for example insurance and turnover, to support SME participation

- Breaking tendering competitions into smaller lots (for example, by sector, region, value etc.) where possible, to actively encourage SME participation and to align with the capacity and capability of the marketplace

- Actively engaging in a range of events to help foster awareness of and to encourage engagement in the public procurement process

- Supporting supplier awareness of eTenders, the national tendering platform (etenders.gov.ie)

Minister of State O’Donovan will be considering appropriate refinements to enhance the significant measures already in place to support SME access taking account of the lessons learned to date in the procurement reform programme and feedback received through the SME Advisory Group and the regional briefings.

Garda Stations

Ceisteanna (172)

Niamh Smyth

Ceist:

172. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the timeframe for works on a Garda station (details supplied); the timeframe for planning and construction; when this project is likely to be completed; and if he will make a statement on the matter. [32542/17]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The OPW has completed its role in the acquisition of a property for the new Garda Station in question.

The OPW and the CSSO continue to press for completion of the process by the Vendor of the property.

Until the acquisition process is fully completed, it is not possible to determine or advise on the timeframes for planning, construction or completion of the project. In view of the Deputy’s repeated interest and questioning on the matter, I can advise that any change in circumstances could be made available to her or she may wish to contact my Office directly.

Public Sector Pensions

Ceisteanna (173)

Willie Penrose

Ceist:

173. Deputy Willie Penrose asked the Minister for Public Expenditure and Reform the progress that has been made to abolish the mandatory retirement ages for civil servants and others who wish on a voluntary basis to continue working in their employment; if the various Departments of State have reviewed this matter with the objective of advancing legislation to achieve this purpose; and if he will make a statement on the matter. [32732/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

I refer the Deputy to my reply to Parliamentary Question no. 31298/17 on 4 July 2017.

Public Sector Staff Expenses

Ceisteanna (174)

Catherine Martin

Ceist:

174. Deputy Catherine Martin asked the Minister for Public Expenditure and Reform if his attention has been drawn to the fact that the current system of travel allowances paid to public servants for travel in the conduct of their duties pays a higher rate for those driving in vehicles with larger engine sizes; if he will consider introducing a revised system of allowances that would incentivise travel by bike, public transport and lower pollution vehicles; and if he will make a statement on the matter. [32737/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

Travel on official duty is an integral part of the functions carried out by many civil and public servants. As a standard principle, public servants should always strive to use public transport for official travel in the first instance, where suitable.

The mileage rates are designed to compensate an officer for the costs incurred in using their own car on official business. The rates are set based on a methodology agreed with the Staff Associations. The methodology takes account of both overhead costs (such as car cost, depreciation and insurance) and also running costs (fuel costs and maintenance). The rates are intended to reimburse an officer for the costs incurred and are not considered a source of emolument or profit. As such, these rates are not considered to be an incentive for officers to use their own cars for official travel.

The Deputy may wish to note that the formula underpinning the motor mileage rates was reviewed this year with a view to reflecting increased efficiencies and improvements in motor technology. The revised rates are based on an agreed methodology that reflects changes in technology, road conditions, commuter behaviour and car ownership patterns. In comparison to the previous system, the revised rates provide a more beneficial compensation regime for officers with cars with lower engine sizes (i.e. the 0-1200cc engine category).

The Deputy may also wish to note that my Department recognises the importance of encouraging officers to choose more environmentally-friendly vehicles and methods of travel. Future revisions of the mileage formula for motor travel rates will move progressively in this direction.

The Revenue Commissioners administer a tax relief scheme for employers to provide a bicycle to employees where the employee does not incur a tax cost for benefit in kind. The Cycle to Work Scheme operates by way of a salary sacrifice. Where an officer uses their bicycle for official travel, they may claim mileage at a rate of 8 cent per kilometre.

Vacant Sites

Ceisteanna (175)

Catherine Martin

Ceist:

175. Deputy Catherine Martin asked the Minister for Public Expenditure and Reform the reason during a housing crisis, sites (details supplied) owned by the OPW are on the Dublin City Council register of vacant sites; his plans for the sites; and when they will be put back into use. [32741/17]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The sites identified are adjoining sites and I will treat them as one site for the purpose of this answer. This site has been designated by Government for a significant development for use by An Garda Síochána. I would not therefore consider the site as one that is lying idle with no intended purpose, and which should be considered for housing or urban renewal. The proposed Garda development is currently the subject of intensive preparatory and planning work. My officials advise me that an application for planning permission for the intended development is expected to be made in Autumn 2017.