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Gnáthamharc

Wednesday, 12 Jul 2017

Written Answers Nos. 129-147

NAMA Expenditure

Ceisteanna (129)

Mick Wallace

Ceist:

129. Deputy Mick Wallace asked the Minister for Finance the receivers working for NAMA and the fees paid to same in each of the years 2011 to 2016 and to date in 2017, in tabular form. [33273/17]

Amharc ar fhreagra

Freagraí scríofa

The information sought by the Deputy is provided by NAMA and is set out in the table for the period from 2011 to date.

Note figures may not total due to rounding.

IP Firm

IP Fees 2011

IP Fees 2012

IP Fees 2013

IP Fees 2014

IP Fees 2015

IP Fees 2016

IP Fees 2017

Total IP Fees

1

Alder King

-

-

-

-

8,502

-

-

8,502

2

Allsop

450,000

-

7,130

543,661

105,750

95,000

-

1,201,541

3

Bannon Commercial

3,750

15,000

114,165

84,553

56,450

46,725

-

320,643

4

BDO

480,193

298,600

663,442

842,086

1,023,692

518,340

22,375

3,848,728

5

BDO UK

521,461

835,615

513,958

442,101

135,443

53,700

-

2,502,278

6

Begbies Traynor

209,382

216,765

194,017

184,932

77,470

2,250

-

884,816

7

BNP/Allsops

-

-

-

2,360

-

-

-

2,360

8

BTW Shiells

60,756

33,197

2,084

64,487

-

-

-

160,524

9

Capita Symonds

45,232

40,906

-

-

-

-

-

86,138

10

Cavanagh Kelly

-

18,333

8,380

3,624

-

-

-

30,337

11

CBRE

130,188

117,332

7,500

7,500

938

-

-

263,458

12

CBRE UK

-

66,375

22,383

99,767

-

-

-

188,525

13

Chantrey Vellacott

16,667

36,553

94,297

218,460

-

-

-

365,977

14

Colliers

-

-

13,100

9,850

-

-

-

22,950

15

Colliers UK

-

10,030

3,186

-

-

-

-

13,216

16

Cordes & Co

-

43,395

66,276

-

-

-

-

109,671

17

Crowe Howarth

55,333

151,534

372,003

690,623

780,285

602,154

180,340

2,832,272

18

Cushman Wakefield (UK)

-

3,403

3,321

-

-

-

-

6,724

19

CVR Global

-

-

-

-

-

16,667

33,333

50,000

20

Deloitte

658,233

796,291

807,017

1,004,876

1,038,985

1,133,144

835,325

6,273,871

21

Deloitte (UK)

90,730

84,333

77,880

123,711

441,646

-

-

818,301

22

Douglas Newman Good

-

4,166

77,083

68,750

75,834

35,000

-

260,833

23

Dr Peter Minuth (Piepenburg Geerling)

-

-

-

84,000

504,000

-

-

588,000

24

DTZ

7,380

62,730

46,780

38,500

33,210

-

-

188,600

25

DTZ - Now CBRE

-

2,500

2,500

2,500

-

-

-

7,500

26

Duff & Phelps

983,992

1,155,898

1,482,497

1,867,732

1,960,975

796,245

341,916

8,589,255

27

Duff & Phelps LLP

-

-

359,671

1,298,686

-

-

-

1,658,357

28

Ernst & Young

449,927

967,073

1,066,075

921,950

1,094,314

396,395

100,000

4,995,734

29

Ernst & Young UK

93,810

31,860

27,730

-

-

-

-

153,400

30

Eddisons

-

-

-

4,167

9,108

-

-

13,275

31

Edward Symmonds/Lambert Smith Hampton

-

28,882

23,193

30,348

13,335

-

-

95,758

32

Edward Symmons

-

39,648

41,421

15,933

14,750

5,940

-

117,692

33

Ferris & Associates

587,748

359,305

488,193

210,393

144,720

-

220,000

2,010,359

34

Friel Stafford

-

24,000

105,498

100,130

78,983

40,944

-

349,555

35

FRP Advisory

-

156,755

20,000

337,329

143,565

-

-

657,649

36

Ganly Waters (formerly Knight Frank)

43,520

121,300

8,400

41,850

2,625

12,810

7691.25

238,197

37

Grant Thornton

1,566,113

2,023,534

2,414,292

2,474,273

2,242,772

1,272,947

384,342

12,378,273

38

Grant Thornton (UK)

1,236,387

1,111,038

1,637,269

735,653

184,897

-

-

4,905,244

39

GVA Bilfinger

-

-

-

-

-

30,000

-

30,000

40

GVA Donal O'Buachalla

3,100

98,875

180,652

297,801

254,379

106,986

26,000

967,793

41

GVA Grimley

378,246

141,756

63,914

192,851

32,353

9,540

-

818,659

42

HBC

19,568

17,266

4,316

-

-

-

-

41,150

43

Hooke & McDonald

-

-

30,565

32,545

27,091

-

-

90,201

44

Hughes Blake

-

66,550

368,992

328,987

313,276

136,306

14,983

1,229,094

45

HWBC

-

188,625

215,396

175,000

364,500

320,000

-

1,263,521

46

HWBC Allsop

-

-

-

10,040

24,133

-

-

34,173

47

Irvine Nott

-

-

-

5,900

-

-

-

5,900

48

Johnston Carmichael

-

70,800

64,900

18,880

-

-

-

154,580

49

Jones Lang LaSalle

12,980

89,160

109,160

135,623

95,000

37,000

-

478,923

50

Keenan Corporate

153,410

310,223

297,760

199,273

71,971

22,868

-

1,055,505

51

Knight Frank (now Ganly Walters)

-

-

9,600

6,000

15,000

-

-

30,600

52

KPMG

1,292,726

1,838,161

2,164,172

1,859,413

1,748,573

832,083

117,425

9,852,554

53

KPMG UK

598,702

1,603,370

726,064

326,875

211,970

146,025

-

3,613,006

54

Lambert Smith Hampton

95,808

95,808

107,577

84,730

105,445

2,950

-

492,318

55

Lisney

-

222,455

275,897

162,212

120,550

-

-

781,114

56

Mason Owen Lyons

-

30,000

36,000

37,400

35,380

13,785

-

152,565

57

Mazars

638,878

802,500

1,002,295

1,622,067

1,639,495

1,199,418

525,446

7,430,099

58

McKeogh Gallagher Ryan

178,129

238,199

397,162

618,567

653,116

302,830

79,850

2,467,853

59

McPeake Auctioneers

-

-

3,700

17,800

14,780

-

-

36,280

60

McStay Luby

560,745

274,374

266,174

296,645

348,254

475,773

192,120

2,414,086

61

Moore Stephens Nathans

-

-

-

-

42,515

-

-

42,515

62

O'Connor Pyne & Co Limited

-

-

-

-

21,125

-

-

21,125

63

O'Dwyer Property Management

-

155,915

146,021

157,088

175,535

127,842

39,800

802,201

64

Osborne King

6,136

6,313

2,974

10,195

-

-

-

25,618

65

PKF O'Connor Leddy Holmes

-

-

-

7,000

5,691

-

-

12,691

66

PKF/BDO UK

-

28,615

341,020

-

-

-

-

369,635

67

PwC

911,769

1,294,498

1,581,837

1,395,919

893,638

659,308

223,829

6,960,798

68

PwC UK

289,882

334,908

340,710

54,785

-

-

-

1,020,285

69

RSM Ireland / Baker Tilly

896,382

589,137

656,992

572,705

879,937

624,815

607,100

4,827,068

70

RSM McClure Watters

268,680

156,553

253,009

274,534

85,330

-

-

1,038,105

71

RSM UK / Baker Tilly (UK)

1,061,641

1,433,372

949,933

733,088

602,703

104,760

4,378

4,889,874

72

Russell Brennan Keane

17,755

37,457

77,022

163,067

420,036

412,902

149,565

1,277,803

73

Savills

283,324

372,531

378,453

225,667

195,000

162,500

94,003

1,711,478

74

Smith Williamson

-

103,610

270,049

411,936

384,188

138,980

24,302

1,333,065

75

SPW UK

52,794

50,698

43,056

2,778

-

-

-

149,326

76

WK Nowlan

63,985

41,200

36,630

90,678

39,577

-

-

272,070

15,475,442

19,549,278

22,172,743

23,082,832

19,992,789

10,894,932

4,224,123

115,392,138

Disabled Drivers and Passengers Scheme

Ceisteanna (130)

Paul Kehoe

Ceist:

130. Deputy Paul Kehoe asked the Minister for Finance his plans to review the qualifying criteria for the disabled drivers and disabled passengers scheme and the primary medical certificate which underpins it; and if he will make a statement on the matter. [33274/17]

Amharc ar fhreagra

Freagraí scríofa

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT, up to a certain limit, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.

To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The criteria to qualify for the Scheme are necessarily precise and specific. After six months a citizen can reapply if there is a deterioration in their condition.

The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant provided for members of the Scheme, the Scheme represented a cost of €65 million in 2016. This does not include the revenue foregone to the Local Government Fund in respect of the relief from Motor Tax provided to members of the Scheme.

I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities and that the relief has been maintained at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.

Revenue Commissioners Data

Ceisteanna (131, 132)

Stephen Donnelly

Ceist:

131. Deputy Stephen S. Donnelly asked the Minister for Finance the number of economic operators' registration and identification, EORI, numbers issued by the Revenue Commissioners in 2015, 2016 and to date in 2017, if his Department has estimated the expected demand for additional EORI numbers in response to the challenges of Brexit; and if he will make a statement on the matter. [33290/17]

Amharc ar fhreagra

Stephen Donnelly

Ceist:

132. Deputy Stephen S. Donnelly asked the Minister for Finance the number of companies with authorised economic operator, AEO, status; if his Department expects demand for AEO status to increase as a result of Brexit; the actions taken by the Revenue Commissioners to anticipate this increased demand; and if he will make a statement on the matter. [33291/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 131 and 132 together.

I am informed by Revenue that it issued the following number of Economic Operator Registration and Identification (EORI) numbers:

Year

EORI numbers issued

2015

3252

2016

4952

2017 (YTD)

1303

An EORI (Economic Operators Registration and Identification system) number is a unique number that is valid throughout the EU and is used as a common reference number for interaction with the customs authorities in any Member State.   Registration may be done through Revenue’s online service by businesses that are engaged in customs or excise activities, and is not required for normal trading within the EU.  EORI registration does not confer any advantages in itself, but facilitates the registered business in gaining direct access to the EU customs and excise systems.   After Brexit, the number of businesses needing to register in order to facilitate continued trade with the UK, will depend on the supply chain model of the business concerned, and on the type of relationship between UK and EU that is negotiated.  For those reasons, Revenue advises that businesses concerned about future trading with the UK should not seek an EORI number at the present time.  Revenue is currently engaged with representative bodies to identify business concerns, and when the Brexit process has progressed sufficiently a public campaign, supplemented by direct contact with businesses known to trade with the UK, will ensure that all businesses requiring registration will be accommodated in ample time.

It is not possible to give a reliable estimate of the likely increase in the EORI register after Brexit.  The present total stands at 36,058.

There are 136 Economic Operators who currently hold a valid AEO Authorisation.  Many of the current AEOs are major customs agents, forwarding companies or carriers, whose services are used by small or non-specialised traders.  An AEO (Authorised Economic Operator) authorisation allows for simplified customs procedures under agreed protocols, and greatly reduces the need for checks at ports, airports and land borders.  The current AEOs account for well in excess of 80% of trade between Ireland the non-EU countries, and it is very important for simplified trading procedures that the dominant role of AEOs continues after Brexit.   However, in the same way that 36,058 EORI traders currently channel the bulk of their trade through 136 AEOs, it is likely that any increase in the number of traders after Brexit require a much smaller increase in AEO numbers.  At the same time, there may be a demand for additional simplifications which will tend to increase AEO requirement.  

It is worth restating that the outcome of Article 50 political negotiations cannot be prejudged, and the nature of the future trading relationships between the EU/Ireland and the UK, and, by extension, any customs regime that might apply, will be determined by those negotiations.  It is premature to set out detailed possible solutions and important that technical solutions do not anticipate or drive outcomes at a political level.

Brexit Issues

Ceisteanna (133, 134, 135, 136)

Stephen Donnelly

Ceist:

133. Deputy Stephen S. Donnelly asked the Minister for Finance the additional supports that will be required in the event of smuggling increasing as a result of tariff arbitrage in the event of hard Brexit; and if he will make a statement on the matter. [33296/17]

Amharc ar fhreagra

Stephen Donnelly

Ceist:

134. Deputy Stephen S. Donnelly asked the Minister for Finance the expected increased burden on IT systems for customs entries as a result of the impact of Brexit; and if he will make a statement on the matter. [33297/17]

Amharc ar fhreagra

Stephen Donnelly

Ceist:

135. Deputy Stephen S. Donnelly asked the Minister for Finance his plans to increase support for IT support for customs entries as a result of the impact of Brexit; and if he will make a statement on the matter. [33298/17]

Amharc ar fhreagra

Stephen Donnelly

Ceist:

136. Deputy Stephen S. Donnelly asked the Minister for Finance if the Revenue Commissioners have undertaken a review of ports here in the context of Brexit; and if he will make a statement on the matter. [33300/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 133 to 136, inclusive, together.

Like all Government agencies, Revenue is actively engaged in examining a range of scenarios in order to support Ireland's objective of maintaining the closest possible trading relationship between the UK and the EU/Ireland, post Brexit. The precise trading arrangements that will apply after Brexit will depend on the outcome of negotiations between the EU and UK. Consequently, while Revenue do not prejudge the outcome of the political negotiations, for practical reasons Revenue’s planning is based on the full range of possibilities, including the possibility that customs controls or processes will apply between Ireland and the UK.

Revenue has advised me that its officials are engaged in researching a range of contingencies primarily related to the movement of goods.  It is clear that managing the volume of trade will be one of the biggest challenges post-Brexit.  

At present, approximately 1.4million customs declarations are processed each year, representing import and export trade with non-EU countries.  In addition, some 57,000 transit instances are processed.  After Brexit, there is likely to be an increase in processing requirements, although estimation of demand is difficult and unreliable because of the likelihood of accompanying behavioural changes, and uncertainty about the exact arrangements that will be negotiated between UK and EU.  Revenue is currently involved in procuring new computer software to implement customs systems required by the 2016 Union Customs Code which must become operational in stages between 2018 and 2022.  Our EU colleagues are also engaged in redeveloping their systems to implement the Union Customs Code and to deal with additional volume that may arise after Brexit.  The new systems will be scaled to accommodate maximum possible demand.  The time required to complete new systems, and to allow software providers to adapt their business packages, may be such that they are not fully in place if customs with the UK is required in the short term, and contingencies are being explored to deal with that eventuality.

Revenue has a presence at the ports, airports, mail and parcel depots, and is in ongoing discussion with the relevant stakeholders, including on the implications of a much higher proportion of traffic requiring customs clearance.  

The serious threat that smuggling poses to legitimate and compliant businesses, consumers and the Exchequer is recognised by Revenue.  It is inherently difficult to predict levels of illegal activity, but targeting and disrupting all shadow economy activities, including smuggling, is always a priority. In 2016 there were a total of 16,658 individual seizures and 1,682 summary convictions for offences related to shadow economy activities. Additionally Revenue works closely with other Member States in order to combat illegal activity and in 2016 received over 1,500 requests for assistance from other Member States. In the same period Revenue received assistance from other Member States in relation to almost 700 cases.

As regards the island of Ireland, the Government’s position in relation to the Border with Northern Ireland in the context of Brexit is very clear.  Continued freedom of movement, absence of an economic border, and protection of the Good Friday Agreement are key objectives for the Irish Government. The arrangements that will apply after Brexit will depend on the outcome of negotiations between the EU and UK.   The Government is clear that any manifestation of an economic border would have very negative consequences.  A key priority is to ensure the continued free flow of trade on the island and the need to avoid an economic border. Clearly in this regard the closer the trading relationship between the UK and EU is more generally the better. I would point out that the EU 27 guidelines for the Article 50 negotiation, specifically refer to the need to support and protect the achievements, benefits and commitments of the Peace Process.  In this regard the guidelines recognise the unique circumstances on the island of Ireland, outlining the need for flexible and imaginative solutions, including with the aim of avoiding a hard border, while respecting the integrity of the Union legal order.

I am satisfied that Revenue's preparatory work in relation to Brexit is proceeding well.  A first allocation of 40 extra staff has been provided to enable scenarios to be developed and explored in conjunction with stakeholders, and as more clarity emerges in the course of EU-UK negotiation, appropriate resources will be provided to ensure a full state of readiness.

Brexit Issues

Ceisteanna (137)

Stephen Donnelly

Ceist:

137. Deputy Stephen S. Donnelly asked the Minister for Finance the position regarding the development of sectorial response plans to Brexit; the publication date of these plans; and if he will make a statement on the matter. [33339/17]

Amharc ar fhreagra

Freagraí scríofa

The Department of Finance is working within the whole-of-Government framework for the preparation of sectoral Brexit response plans. This is to ensure that that Ireland will be in a position to counter negative economic impacts arising from Brexit, that Ireland's interests are protected in the negotiations at EU level and also that Ireland can seek to maximise opportunities arising, including in the financial services sector.

The Department of Finance has been assessing and preparing for the impact of Brexit since well before the UK referendum in June 2016. Work was carried out in the Department to assess the potential economic and financial sector implications arising, including the study, published in November 2015 under the ESRI-Department of Finance research programme, entitled 'Scoping the Possible Economic Implications of Brexit on Ireland'. Following the referendum, Budget 2017 included a number of measures to respond to the challenges of Brexit, including measures to support SMEs, entrepreneurship, agri-food and Irish exporters. These measures were informed by the Department's sectoral exposure analysis published with Budget 2017. Additional research work on Modelling the Medium to Long Term Potential Macroeconomic Impact of Brexit on Ireland was published in November 2016 and an updated sectoral exposure analysis in March 2017.

The Department of Finance contingency work is mainstreamed across all divisions and focusses on economic and financial sector impacts. The Department will continue to carry out the necessary research, analysis and consultations, and to develop budgetary policy in the context of Brexit.

Departmental Correspondence

Ceisteanna (138)

Noel Grealish

Ceist:

138. Deputy Noel Grealish asked the Minister for Finance if a reply will issue to correspondence (details supplied) of 16 March 2017 in regard to exempt approval status of occupational pension schemes; and if he will make a statement on the matter. [33358/17]

Amharc ar fhreagra

Freagraí scríofa

A reply to the correspondence concerned was issued on 3rd July 2017.

Banking Sector

Ceisteanna (139)

Michael McGrath

Ceist:

139. Deputy Michael McGrath asked the Minister for Finance if he will investigate a matter raised in correspondence (details supplied) in relation to the use of contactless electronic payments; and if he will make a statement on the matter. [33364/17]

Amharc ar fhreagra

Freagraí scríofa

The question appears to concern the possible security implications of information displayed on the merchant receipt following a contactless payment transaction. Contactless payments carried out using credit or debit cards use the same secure payment technology as payments made with cards that are not contactless enabled.

It is normal for a merchant to receive the card number and expiry date, as the merchant ordinarily requires those details to execute the payment transaction. I understand that the Payment Card Industry’s Data Security Standard (PCI DSS) requires merchants to protect cardholder data and payment card information, whether it is printed, processed, transmitted or stored. Best practice is to not display the card number in full on a receipt, and card numbers are generally truncated or masked to show only the final four digits. In addition, the CVV and PIN number, which are required to execute non-contactless payments, are not included on a receipt.

Any cardholder who has concerns on how a merchant displays his or her payment card information should raise the issue either directly with the merchant or with the bank that issued the card. If dissatisfied with the response of the bank, the cardholder can refer a complaint to the Financial Services Ombudsman, which is an independent office established to deal with consumer complaints about their dealings with financial institutions.

Film Industry Tax Reliefs

Ceisteanna (140)

Maurice Quinlivan

Ceist:

140. Deputy Maurice Quinlivan asked the Minister for Finance the amount of tax relief given under the section 481 film relief scheme in each of the years 2015 and 2016 and to date in 2017, in tabular form. [33420/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the tax relief claimed under section 481 for the tax year 2015 is €69.7 million. This information will shortly be published on Revenue’s webpage at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. Information for earlier years is included therein. Information in respect of the tax relief claimed by companies for the tax years 2016 and 2017 will not be available until after the returns for these years are filed.

National Economic Dialogue

Ceisteanna (141)

Thomas P. Broughan

Ceist:

141. Deputy Thomas P. Broughan asked the Minister for Finance the attendees at the National Economic Dialogue in Dublin Castle on 28 and 29 June 2017, in tabular form. [33522/17]

Amharc ar fhreagra

Freagraí scríofa

The Department of Finance and Department of Public Expenditure and Reform hosted the National Economic Dialogue on the 28 and 29 June 2017 in Dublin Castle. The Dialogue was an opportunity to consider how to make best use of the available resources in the interests of all citizens. The aim was to foster discussion on how best to sustain and strengthen the recovery in the interests of all while taking account of the many competing economic and social priorities within the limited fiscal space. The Dialogue was not intended to produce specific budget proposals or recommendations. The overarching theme of the Dialogue was “Sustainable and inclusive growth in the context of national and global challenges.” Representatives of community, voluntary and environmental groups, business, unions, research institutes, the academic community and the media were invited. All members of the Select Committee on Budgetary Oversight were also invited to attend and to participate.

Please see the following full attendance list for this year’s Dialogue:

Surname

First Name

Organisation

Andrews

Ruth

Incoming Tour Operators Association Ireland

Arnold

Tom

Rapporteur

Barrett

Professor Alan

Chairman

Barry

Linda

Small Firms Association

Beausang

William

Department of Public Expenditure and Reform

Bell

Sean

Department of Agriculture, Food and the Marine

Berney

Liam

ICTU

Boland

Séamus

Irish Rural Link

Boyd-Barrett T.D.

Richard

Select Committee on Budgetary Oversight

Brady

Ger

IBEC

Broderick

Larry

ICTU

Browne

Margaret

ICTU

Bruton T.D.

Richard

Minister for Education and Skills

Buckley

Olivia

Irish Tax Institute

Burke

Fiona

Irish Exporters Association

Byrne

Nicola

Irish Exporters Association

Calleary T.D.

Dara

Select Committee on Budgetary Oversight

Callinan

John

Department of the Taoiseach

Callinan

Patricia

IBEC

Callinan

Kevin

ICTU

Carroll

Philip

Meat Industry Ireland

Clinch

Peter

National Competitiveness Council

Cody

Shay

ICTU

Coffey

Seamus

Irish Fiscal Advisory Council

Comer

John

Irish Creamery Milk Suppliers Association

Conroy

Niall

Irish Fiscal Advisory Council

Cooper

Ivan

The Wheel

Costello

Pat

Chartered Accountants Ireland

Creed T.D.

Michael

Minister for Agriculture, Food and the Marine

Cronin

Patricia

Department of Communications, Climate Action and Environment

Cummins

Adrian

Restaurants Association Ireland

Davitt

Pat

IPAV

Dempsey

Shane

Construction Industry Federation

Dillon

Derrie

Macra na Feirme

Doheny

Dominic

Construction Industry Federation

Doherty T.D.

Regina

Minister for Employment and Social Protection

Dolan

John

Disability Federation of Ireland

Donohoe

Tony

IBEC

Donohoe T.D.

Paschal

Minister for Finance and Public Expenditure and Reform

Doorley

James

National Youth Council of Ireland

Doran

Liam

ICTU

Doyle T.D.

Andrew

Minister of State at the Department of Agriculture, Food and the Marine with special responsibility for Food, Forestry and Horticulture

Duffy

Dr. David

IBEC

Duggan

Oonagh

Environmental Pillar

Ewing

Michael

Environmental Pillar

Farrell

Sinead

Irish Co-operative Organisation Society

Farrell

Elaine

Irish Farmers' Association

Feehily

Naomi

Age Action

Fenn

Tim

Irish Hotels Federation

FitzGerald

Professor John

Climate Change Advisory Council

Fitzgerald T.D.

Frances

Tánaiste and Minister for Enterprise and Innovation

Flanagan

Maire

Department of the Taoiseach

Fraser

Martin

Department of the Taoiseach

Gallagher

John

The Wheel

Geraghty

Tom

ICTU

Green

Michael

Social Progress Imperative

Griffin

Mark

Department of Communications, Climate Action and Environment

Gunnell

Anne

Irish Tax Institute

Hayes

Mairéad

Irish Senior Citizens Parliament

Healy

Joe

Irish Farmers' Association

Healy

Cormac

Meat Industry Ireland

Healy

Dr Tom

Nevin Economic Research Institute

Healy

Dr. Seán

Social Justice Ireland

Hogan

John

Department of Finance

Hughes

David

ICTU

Joyce

David

ICTU

Kavanagh

Paddy

ICTU

Keegan

Brian

Chartered Accountants Ireland

Kelly

Paul

IBEC

Kelly

Liam

Workplace Relations Commission

Kent

Patrick

Irish Cattle and Sheep Farmers Association

Kerrins

Liz

Children's Rights Alliance

Kinahan

Noel

Irish Rural Link

King

Patricia

ICTU

King

Patrick

Society of Chartered Surveyors Ireland

Lennon

Louise

Irish Rural Link

Lynam

Stephen

Department of Finance and Public Expenditure and Reform

Lynch

Matthew

Department of Enterprise and Innovation

MacMahon

Dr. Bernadette

Vincentian Partnership for Social Justice

Maher

Valerie

One Family

Mair

Jeanette

Construction Industry Federation

Masterson

Siobhan

IBEC

McBride

Orlaith

Arts Council

McCafferty

John-Mark

Community Platform

McCarthy

John

Department of Finance

McCarthy

John

Department of Housing, Planning and Local Government

McCarthy

Ross

ISME

McCormack

Gerry

ICTU

McCoy

Danny

IBEC

McDonald

Damien

Irish Farmers' Association

McDonnell

Dr Tom

Nevin Economic Research Institute

McElwee

Maeve

IBEC

McGibney

Aebhric

Chambers Ireland

McGuinness

Dr Seamus

Rapporteur

McKenna

Niamh

Change X

McManus

Brigid

Rapporteur

McQuinn

Professor Kieran

ESRI

Moran

Justin

Age Action

Moran

Derek

Department of Finance

Morgenroth

Dr Edgar

Rapporteur

Mulvihill

Conor

Irish Dairy Industries Association

Murphy

Karen

Irish Council for Social Housing

Murphy

Dr Mary

Rapporteur

Murphy

Michelle

Social Justice Ireland

Murphy T.D.

Eoghan

Minister for Housing, Planning and Local Government

Murtagh

Ciaran

ISME

Naughten T.D.

Denis

Minister for Communications, Climate Action and Environment

Ní Chaithnía

Eilís

National Women's Council of Ireland

Ni Sheagdha

Phil

ICTU

Nolan

Ann

Department of Finance

Nunan

Sheila

ICTU

O' Donoghue

Sean

Killybegs Fishermen's Association

Ó Foghlú

Seán

Department of Education and Skills

O'Brien

Nicholas

Department of Finance

O'Brien

Mindy

Environmental Pillar

O'Brien

Fergal

IBEC

O'Brien

Bríd

Irish National Organisation of the Unemployed

O'Byrne

Hazel

Society of St. Vincent de Paul

O'Connell

Dr Larry

Rapporteur

O'Connor

Jack

ICTU

O'Donoghue

Liam

IBEC

O'Donovan

Fiona

Disability Federation of Ireland

O'Donovan T.D.

Patrick

Minister of State at the Department of Finance and the Department of Public Expenditure and Reform with special responsibility for Public Procurement, Open Government and eGovernment

O'Hara

Paul

Change X

O'Hora

Brendan

Chartered Accountants Ireland

O'Mahoney

Paul

Family Carers Ireland

O'Mara Walsh

Eoghan

Irish Tourism Industry Confederation

O'Neill

Sue

Small Firms Association

O'Sullivan

Paul

Clann Credo- Community Loan Finance

O'Toole

Paul

SOLAS

Parlon

Tom

Construction Industry Federation

Pratschke

Sheila

Arts Council

Pratt

Maurice

Irish Tourism Industry Confederation

Punch

Eddie

Irish Cattle and Sheep Farmers Association

Quinn

Dr. Orlaigh

Department of Enterprise and Innovation

Reidy

Owen

ICTU

Rigney

Peter

ICTU

Ruddock

Kate

Environmental Pillar

Ryan

Dr Joseph

Technological Higher Education Association

Ryan T.D.

Eamon

Select Committee on Budgetary Oversight

Sellars

Dermot

Co-operative Housing Ireland

Shaw

John

Department of the Taoiseach

Smyth

Paul

Irish Creamery Milk Suppliers Association

St. Ledger

Andrew

Environmental Pillar

Stanley

Wayne

Community Platform

Stanley-Smith

Charles

Environmental Pillar

Stewart

Duncan

Environmental Pillar

Stewart

John

Irish National Organisation of the Unemployed

Sweeney

Dr. John

Labour Market Council

Talbot

Ian

Chambers Ireland

Timoney

Kevin

Irish Fiscal Advisory Council

Trainer

Cheral

Construction Industry Federation

Varadkar T.D.

Leo

Taoiseach

Vaughan

Anne

Department of Employment and Social Protection

Walker

Neil

IBEC

Walsh

Teresa

ICTU

Watt

Robert

Department of Public Expenditure and Reform

Webb

David

Protestant Aid

Whelan

Dr Adele

Rapporteur

Whelan

Brendan

Social Finance Foundation

VAT Rate Reductions

Ceisteanna (142)

Michael Healy-Rae

Ceist:

142. Deputy Michael Healy-Rae asked the Minister for Finance if the VAT rate can be reduced to 20% (details supplied); and if he will make a statement on the matter. [33537/17]

Amharc ar fhreagra

Freagraí scríofa

The OECD, in its hierarchy of taxes, state that taxes on property and consumption are less harmful to economic growth than personal and corporate taxes.  A reduction in the standard VAT rate from 23% to 20% would cost the Exchequer €1.23 billion in a full year.

I would point out that, as of 1 January 2017, 23 of the 28 EU Member States have a standard VAT rate of 20% or higher and the average standard rate in the EU is 21.5%. While Ireland's standard VAT rate is higher than the average rate, six Member States apply standard rates higher than 23% and 2 other Member States also apply a rate of 23%.  Furthermore, the standard rate VAT differential between Ireland and the UK has narrowed from a high of 6.5 percentage points in 2009 to 3 percentage points since January 2012.

VAT Rate Application

Ceisteanna (143)

Michael Healy-Rae

Ceist:

143. Deputy Michael Healy-Rae asked the Minister for Finance if he will retain the 9% VAT rate for labour-intensive sectors (details supplied). [33538/17]

Amharc ar fhreagra

Freagraí scríofa

As part of the Government's Job Initiative in 2011, a temporary second reduced VAT rate of 9% was introduced in respect of tourism related services, including hotel and holiday accommodation; restaurant services, various entertainment services; the use of sporting facilities; hairdressing services; and various printed matter. This measure was aimed at boosting tourism and the creation of additional jobs in that sector.

From Budget 2014 it was decided to retain the 9% rate to support the increased number of jobs already in place and accelerate the creation of new jobs.

The Programme for a Partnership Government, published in May 2016, made a commitment to work towards achieving the tourism policy goals set for 2025 through specific measures including the retention of the 9% VAT rate on tourism related services, but this itself is dependent on prices remaining competitive in the sector.

In Budget 2017, in the weakness in sterling following the UK vote to exit the EU, it was considered prudent to retain the 9% reduced VAT rate into 2017.

In keeping with tradition, I do not propose to comment on Budget issues in advance of the forthcoming Budget.

Excise Duties

Ceisteanna (144)

Michael Healy-Rae

Ceist:

144. Deputy Michael Healy-Rae asked the Minister for Finance if he will refrain from increasing the excise duty on alcohol and further increases on tobacco products (details supplied). [33539/17]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Carbon Tax Implementation

Ceisteanna (145)

Michael Healy-Rae

Ceist:

145. Deputy Michael Healy-Rae asked the Minister for Finance if he will reduce the carbon tax; and if he will make a statement on the matter. [33540/17]

Amharc ar fhreagra

Freagraí scríofa

The carbon tax is designed to treat all carbon emissions the same in order to ensure that it is fair and its application is as broad as possible to make certain its efficacy.  The introduction of Carbon Tax was to send a price signal that there is a cost associated with the combustion of fossil fuels to the detriment of the environment.

Ireland is legally bound to reduce emissions by 20% on 2005 levels in 2020 and 30% on 2005 levels by 2030, as part of the European Commission's Climate and Energy Package to tackle climate change.   The carbon tax was introduced as part of an overarching energy strategy and is a key tool to reduce emissions towards meeting these and other climate change commitments.

As a matter of principle the reliefs from the carbon tax are limited to ensure as wide an application as possible.  Placing a carbon tax on fuels also offers an incentive to develop cleaner, more efficient and environmentally friendly alternative fuels.  The carbon tax is, and will continue to be, a fundamental pillar of the transition towards a decarbonised economy and society by 2050. 

Mechanisms have been put in place by the Department of Communications, Climate Action and Environment for control of supplies of solid fuel coming into the State.  Regulations issued by that Department govern the marketing, sale, distribution and burning of solid fuels, require the registration of coal traders and establish higher environmental standards for coal supplied in the State compared with Northern Ireland. Compliance with those Regulations is enforced by local authorities.

VAT Registration

Ceisteanna (146)

Michael Healy-Rae

Ceist:

146. Deputy Michael Healy-Rae asked the Minister for Finance if he will ensure that businesses are not burdened due to VAT registration; and if he will make a statement on the matter. [33541/17]

Amharc ar fhreagra

Freagraí scríofa

VAT is governed by the EU VAT Directive (Council Directive 2006/112/EC), with which Irish VAT law must comply. The VAT Directive provides that VAT registration thresholds may only be raised by Member States to maintain their value in real terms, that is, they may only be increased in line with inflation. The VAT thresholds were increased to their current values, €37,500 for services and €75,000 for goods, on 1 May 2008. As the Central Statistics Office figures show that the consumer price index is below the level it reached in 2008, it is not possible to increase the VAT registration thresholds at this time. I would point out, however, that Ireland’s VAT registration threshold for small enterprises supplying services is the 9th highest in the EU while the goods threshold is the third highest. 

Universal Social Charge Exemptions

Ceisteanna (147)

Michael Healy-Rae

Ceist:

147. Deputy Michael Healy-Rae asked the Minister for Finance if the 3% USC surcharge for the self employed can be removed (details supplied). [33542/17]

Amharc ar fhreagra

Freagraí scríofa

The 3% USC surcharge is payable on self-assessed income in excess of €100,000.  When the USC was introduced in 2011 it was accompanied by a series of other reform measures designed to simplify the tax system and widen the tax base in order to raise the revenues required at that time.  

One of these measures was the removal of the €75,000 income ceiling for employees, above which PRSI was not payable.  This ceiling was removed for all employees in 2011, with the result that employees on incomes in excess of €75,000 became liable to an additional 4% charge on that portion of their income. At the same time the PRSI rate for self-assessed income earners was increased from 3% to 4%.

The 3% USC surcharge on non-PAYE income in excess of €100,000 was introduced in tandem with the removal of the PRSI ceiling of €75,000 as, in the absence of this measure, self-assessed high income earners would have benefitted when compared to their PAYE counterparts from the tax package introduced in Budget 2011.  On the basis of fairness, this could not have been countenanced at the time.

With regard to equality of treatment, the Deputy will be aware that, while Employer PRSI contributions of 8.5% and 10.75% are payable in respect of employees, no similar contribution is payable by the self-employed. In addition, the self-employed also continue to benefit from a broader expense deduction regime than that available to employees. 

The Government’s plans to reduce the income tax burden for all taxpayers, with a particular focus on low to middle income earners, were clearly stated in the Programme for Government published in May 2016.

The Programme for Government recognises that high personal tax rates in Ireland discourage work and jobs and have a negative impact on our international competitiveness. Therefore, it contains a commitment for a medium-term income tax reform plan that keeps the tax base broad, while reducing excessive tax rates for middle income earners, and limiting the benefit for high earners. We must appreciate the value of retaining the incentive to work, to enable those who work hard to provide for their families and generate further economic growth through employment and expenditure in the domestic economy.

Preparations for Budget 2018 are now under way. As the Deputy will be aware, changes to one particular tax, such as USC, are not considered in isolation. They must be considered as part of the overall Budget process encompassing both revenue and expenditure measures and in the context of available resources. Any announcement in relation to changes to the income tax system, including USC, would normally be made as part of the Budget and I am not inclined to diverge from this practice.

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