Written Answers Nos. 120 - 135
120. Deputy Charlie McConalogue asked the Minister for Finance the progress made with regard to tackling the cost of motor insurance; the steps that have been implemented to date; the future steps that will be taken in order to reduce premiums; and if he will make a statement on the matter. [47840/17]
Amharc ar fhreagraThe Deputy should note at the outset that in my role as Minister for Finance I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on the risks they are willing to accept.
However, it is acknowledged that pricing in the motor insurance sector has been subject to a lot of volatility in recent years, from a point where some premiums appeared to be priced at an unsustainably low level to the more recent experience of large increases.
Indeed, the problem of rising motor insurance premiums was the main impetus for the establishment of the Cost of Insurance Working Group in July 2016. Its Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are set out in an Action Plan.
These recommendations were formulated to address the issue of increasing motor insurance costs, whilst taking account of the need to ensure a financially stable insurance sector. This stability aspect is important, as we do not want to find ourselves in a situation again where particular firms drive prices down to a level that is unsustainable and which ultimately results in insolvency.
Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group will prepare quarterly updates on its progress. The third such update was published on the Department's website on 23 October 2017 and shows the progress to date on the overall implementation of the recommendations.
32 actions were due for completion in the first three quarters of the year in total and 29 of those actions have been completed to date. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”. The fourth quarterly update should be published early in the New Year and will focus on the 14 actions which are due for completion in the third quarter of 2017.
I believe that the ongoing implementation of the Report on the Cost of Motor Insurance, in addition to the implementation of the Working Group's forthcoming report on employer and public liability, will make a difference to the pricing of insurance premiums over the next 12 or so months. It is envisaged that the implementation of all the recommendations cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, will achieve the objective of delivering fairer premiums for consumers. I also believe that the Setanta judgment, by finding that MIBI is not liable to meet third party claims, removes a major uncertainty from industry, which I would expect to be reflected in pricing in the short to medium term.
It should be noted that the most recent CSO data (for October) indicates that private motor insurance premiums have reduced by 15.2% from the peak in July 2016. While the CSO statistics indicate a greater degree of stability on an overall basis, these figures represent a broad average and therefore there are many people who may still be seeing increases. However, I am hopeful that this greater stability in pricing will be maintained and that premiums should continue to fall from the very high level of last year.
121. Deputy Tony McLoughlin asked the Minister for Finance if he will request the NTMA to investigate if the prize bond holdings of a company (details supplied) are still active; if so, the name of the active registered owner in view of the fact that the company is no longer in existence; and if he will make a statement on the matter. [47847/17]
Amharc ar fhreagraThe NTMA have advised me that the Prize Bond Company acts as an agent of the NTMA in the administration of Prize Bonds. Any queries in relation to Prize Bonds should be directed to Prize Bond – Customer Service the contact details for which are available on the dedicated State Savings website at www.statesavings.ie.
It should be noted that the regulations governing Prize Bonds prevent the Prize Bond Company from releasing information on holdings and/or holders except to the registered Bondholder or to someone authorised to act on their behalf.
122. Deputy Fergus O'Dowd asked the Minister for Finance the way his Department responded to the declaration of the status red alert weather warning in respect of its employees; and if he will make a statement on the matter. [47928/17]
Amharc ar fhreagraThe Department of Housing, Planning and Local Government is the Lead Government Department for coordinating the response to severe weather emergencies at national level. My Department is one of the Departments that participate in the National Emergency Coordination Group (NECG), which met on 15 October 2017 in anticipation of the arrival of Storm Ophelia.
On the basis of advice provided by the NECG, the Secretary General of my Department decided to close Department offices to all but essential staff on Monday October 16th. This decision was notified to staff late on Sunday evening by means of email, text and via my Department’s twitter account, which is linked to its website.
123. Deputy Thomas P. Broughan asked the Minister for Finance the average rate of inflation in wages annually compared to the average rate of inflation in rents; and if he will make a statement on the matter. [47955/17]
Amharc ar fhreagraAccording to the latest data published by the CSO, average weekly earnings grew by 2.2 per cent on an annual basis in the second quarter of 2017. This compares to annual rent inflation of 6.6 per cent based on Residential Tenancies Board data.
The fundamental issue with the housing market in Ireland today is lack of supply. This applies to the rental market specifically and to the residential property market more generally. To address this, the Government's housing strategy Rebuilding Ireland - Action Plan for Housing and Homelessness adopts a whole of government response with 84 actionable measures across five key pillars and aims to increase overall housing supply by 25,000 new homes every year by 2020. The measures set out in the Action Plan aim to stimulate supply by streamlining the planning system, removing infrastructure blockages and supporting the delivery of affordable housing for both first time buyers and purchasers of family homes.
More recently, the Government has been engaged in a review of Rebuilding Ireland, in order to assess its impact and to consider additional actions to address issues with supply in the housing market. Further to this, in Budget 2018 an additional €500 million was allocated to build an additional 3,000 social housing units by 2021. Furthermore, funding of €750 million from the Ireland Strategic Investment Fund (ISIF) is being made available to a new vehicle - Home Building Finance Ireland – to boost the supply of debt funding to residential development. These measures are intended to increase the supply of both private and social residential properties and thus ease inflationary pressures in the market.
The Government has also sought to specifically address rent inflation through the introduction of Rent Pressure Zones (RPZ). These measures have been introduced to address inflation in rental prices within designated areas. There are signs that this measure, as well as government initiatives more broadly, are beginning to moderate rental prices. For example, in Dublin the rate of increase in the second quarter of 2017 (5.8 per cent) is at its lowest since the second quarter of 2013. The Government will continue to closely monitor developments in the rental sector and the housing market more generally.
124. Deputy Fergus O'Dowd asked the Minister for Finance his plans to review the deposit guarantee scheme, DGS, in certain circumstances (details supplied); his plans to review the DGS to include ARF and AMRF; and if he will make a statement on the matter. [47994/17]
Amharc ar fhreagraApproved Retirement Funds (ARFs) are part of the flexible options at retirement introduced in Finance Act 1999 to provide control, flexibility and choice to the holders of personal pension plans and to proprietary director members of occupational pension schemes, in relation to the drawdown of their retirement benefits.
In order to avail of an ARF, members aged under 75 are required to demonstrate guaranteed income of €12,700 per annum, including State pension. If income is less than €12,700, the individual must transfer €63,500 of their retirement fund to an Approved Minimum Retirement Fund (AMRF) or purchase an annuity to bring up their level of income to this amount. The purpose of the AMRF is to ensure that an individual, without the minimum guaranteed pension income for life, has a capital nest-egg to provide for the latter years of his or her retirement.
On foot of changes to the AMRF arrangements which were introduced in Finance Act 2014, with effect from 1 January 2015, AMRF owners can draw down up to 4% of the value of the fund assets on one occasion annually until he or she either meets the guaranteed pension income requirement or attains the age of 75, at which point, the AMRF automatically becomes an ARF and any remaining funds can be drawn down at the owner's discretion.
EU Directive 2014/49/EU on Deposit Guarantee Schemes (DGS) protects depositors in the event of a bank, building society or credit union authorised by the Central Bank of Ireland being unable to repay deposits. The DGS is administered by the Central Bank of Ireland and is funded by the institutions covered by the scheme.
The DGS protects:
- Depositors if a bank, building society and/or credit union authorised by the Central Bank of Ireland is unable to repay deposits;
- Eligible deposits up to €100,000 per person per institution;
- Current accounts, deposit accounts, share accounts in banks, building societies and credit unions.
The Irish DGS protects deposits held at EU branches of authorised Irish institutions. Deposits held with credit institutions that are authorised in another European Economic Area Member State are covered by that country’s deposit guarantee scheme.
Deposits by pension and retirement funds are excluded from the coverage of the DGS. By way of derogation from that exclusion Member States were permitted to include certain personal pension schemes. Following transposition into Irish law, DGS Regulations (S.I. No 516 of 2015 – Part 4 Regulation 10(1)(k)) state that, other than an exception for Small Self-Administered Pension Schemes, deposits by pension or retirement funds are excluded from any repayments by the DGS.
Pending any further changes to the European Directive to include retirement schemes, I have no plans to revise the current implementation of the Directive in Ireland.
125. Deputy Josepha Madigan asked the Minister for Finance if stair lifts in domestic dwellings are eligible for inclusion in the home renovation incentive; and if not, his plans to include stair lifts in the near future. [47997/17]
Amharc ar fhreagraThe terms of the Home Renovation Incentive (HRI) are set out in section 477B of the Taxes Consolidation Act 1997.
(a) I am advised by Revenue that the cost of installing a stair lift in a home can qualify for relief under HRI.
(b) I am also advised by Revenue that the cost of a stair lift qualifies for relief in respect of health expenses under the Tax Acts and a refund of VAT where it has been installed on the advice of a medical practitioner.
Assuming the various statutory requirements are met, relief may be claimed under either (a) or (b) above but not both.
126. Deputy Róisín Shortall asked the Minister for Finance the number of firms by size that have availed of the knowledge development box; and if he will make a statement on the matter. [48031/17]
Amharc ar fhreagra127. Deputy Róisín Shortall asked the Minister for Finance the estimated value of the intellectual properties qualifying for the knowledge development box deductions; and if he will make a statement on the matter. [48032/17]
Amharc ar fhreagraI propose to take Questions Nos. 126 and 127 together.
I am advised by Revenue that the Knowledge Development Box (“KDB”) was introduced with effect from 1 January 2016. Information from Corporation Tax returns for 2016, the bulk of which have only recently been filed, will be processed, parsed and analysed in the coming months. Further information on the KDB will then be available in late 2017 or early 2018. However, I am further advised by Revenue that, based on preliminary analysis, the number of claims received on returns to date is small and it is likely that the cost to the Exchequer will be significantly below the €50 million estimated in Budget 2016.
128. Deputy John Lahart asked the Minister for Finance the number of prosecutions and prison sentences that have been handed out for tax offences relating to persons since 2010, in tabular form. [48046/17]
Amharc ar fhreagraDetails of the numbers of convictions, and of prison sentences imposed, in the period in question are set out in the following tables. The Deputy may wish to note that in some of the cases in which a prison sentence was imposed, the sentence may have suspended in full or in part by the courts. There was no case of a prosecution in respect of the non-filing of tax returns in which a prison sentence was imposed.
Serious Tax and Duty Convictions
|
Year |
No of convictions |
No. of prison sentences imposed |
|
2017 (end October) |
21 |
20 |
|
2016 |
18 |
14 |
|
2015 |
28 |
25 |
|
2014 |
27 |
17 |
|
2013 |
35 |
23 |
|
2012 |
50 |
40 |
|
2011 |
30 |
22 |
|
2010 |
13 |
8 |
Summary Tax and Duty Convictions
|
Year |
No of convictions |
No. of prison sentences imposed |
|
2017 (end October) |
324 |
6 |
|
2016 |
433 |
15 |
|
2015 |
590 |
18 |
|
2014 |
504 |
14 |
|
2013 |
449 |
27 |
|
2012 |
538 |
25 |
|
2011 |
513 |
32 |
|
2010 |
519 |
19 |
Prosecutions for Non-Filing of Tax Returns
|
Year |
No. of convictions |
|
2017 (end September) |
351 |
|
2016 |
573 |
|
2015 |
713 |
|
2014 |
664 |
|
2013 |
746 |
|
2012 |
929 |
|
2011 |
1083 |
|
2010 |
1217 |
129. Deputy Aengus Ó Snodaigh asked the Minister for Finance the reason the State Claims Agency did not seek assistance from the Health and Safety Authority immediately when it discovered in 2013 and 2014 that serious and ongoing breaches of health and safety legislation, including lack of risk assessments, lack of chemical training and lack of personal protection equipment, were causing ongoing harm to personnel of all Air Corps ranks and none; and if he will make a statement on the matter. [48048/17]
Amharc ar fhreagraThe NTMA have advised me that the State Claims Agency did not undertake audits in the Defence Forces in 2013 and 2014.
130. Deputy Michael McGrath asked the Minister for Finance the value of intangible assets onshored here for each of the years 2012 to 2016 and to date in 2017; and if he will make a statement on the matter. [48137/17]
Amharc ar fhreagraIn relation to “onshoring” of intangible assets, as recorded in the National Accounts, I understand from the CSO that there are two channels by which this can occur. The first channel is through the import of Research and Development (RandD) related intellectual property (IP), and the second is through the relocation of companies and their associated balance sheets.
The following table shows the value of RandD related IP imports over the period 2012 to 2016 and for the first half of 2017. The table also contains total R&D imports, but this figure alone would overstate the extent of onshoring as it also includes RandD services carried out abroad on behalf of companies located in Ireland.
The second channel, the relocation of companies and their associated balance sheets, was significant in the onshoring that occurred in 2015. While data on the value of intangible assets onshored through this channel is more limited, the relocations in 2015 along with RandD related imports added approximately €300 billion to Ireland’s capital stock.
|
Year |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 H1 |
|
RandD related IP imports (€- millions) |
2081 |
234 |
1992 |
8266 |
35631 |
11211 |
|
RandD Services (€- millions) |
5925 |
5824 |
6712 |
10354 |
11514 |
6525 |
|
Total RandD Imports (€- millions) |
8006 |
6058 |
8704 |
18620 |
47145 |
17736 |
131. Deputy Pearse Doherty asked the Minister for Finance his plans to reverse his position on public country-by-country reporting and provide support to the principle and implement it; and if he will make a statement on the matter. [48157/17]
Amharc ar fhreagraIn Finance Act 2015, Ireland introduced Country by Country reporting in line with the OECD Base Erosion and Profit Shifting (BEPS) Action 13 recommendation. The first reports will be filed with the Revenue Commissioners by the end of this year and these reports will be exchanged with other tax authorities around the world through EU and OECD mechanisms.
Making country by country reports public would go against the consensus reached in the OECD BEPS process that the real value of such reports is to enable tax authorities to see what is really happening and to assist them in carrying out risk assessments. It is important that a consistent global approach is taken on this issue.
A Commission proposal for an EU Directive on public country by country reporting is currently being debated by Member States. As it involves changes to the Accounting Directive, it is therefore being dealt with by my colleague, the Minister for Business, Enterprise and Innovation.
132. Deputy Pearse Doherty asked the Minister for Finance his views on a comprehensive tax haven blacklist; and if he will make a statement on the matter. [48158/17]
Amharc ar fhreagraThere is widespread consensus in recent years that aggressive tax planning can only be prevented by all countries acting together.
Member States of the EU agreed last year to draw up a list of countries that do not live up to international best practice on tax. Criteria were agreed by Member States early in 2017 which are based on agreed international tax standards on transparency, BEPS implementation and fair tax competition, as well as requiring a closer examination of zero tax jurisdictions.
All jurisdictions were considered as part of this exercise and it was decided to begin a dialogue with 92 jurisdictions that have economic ties with the EU. The decision to begin dialogue with a jurisdiction did not presuppose any element of non-compliance by the jurisdiction concerned.
At this point in time, experts from the Member States have reviewed the jurisdictions and have completed a preliminary analysis. In late October, letters issued to jurisdictions informing them of the outcome of this analysis. Where issues have been identified, those jurisdictions have been asked to make a high level political commitment to make changes to their tax system.
The intention of the list is not to label countries as tax havens, but rather to engage in dialogue and promote compliance with international best practice.
I am hopeful that agreement on the first version of this list can be reached among all EU Finance Ministers at the upcoming December ECOFIN.
133. Deputy Sean Sherlock asked the Minister for Public Expenditure and Reform the measures he plans to take on the Kiltha river at Castlemartyr, County Cork, to prevent future flooding (details supplied). [47632/17]
Amharc ar fhreagraThe core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of Flood Risk Management Plans. The catchment area referred to is part of the South Western CFRAM Study.
These final Plans are currently undergoing an independent review of the strategic level environmental assessments by the Department of Public Expenditure and Reform. Once this independent review of all Plans is completed and observations addressed, I would hope by the end of this year to seek the approval from the Minister for Finance and Public Expenditure and Reform for the 29 Flood Risk Management Plans developed under the CFRAM process.
Thereafter, I would hope to announce the proposed structural measures contained within those Plans that will, over the coming years, be taken to detailed design to protect those communities at assessed risk.
Subject to approval, the potentially viable flood relief works for Castlemartyr consists of the diversion of the Kiltha River around the town via an existing bypass channel through the grounds of the hotel and the construction of flood walls to protect vulnerable properties at the confluence of the Kiltha and the bypass channel.
The Castlemartyr Flood Relief Scheme will be subject to project-level public consultation and assessment before proceeding.
134. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the number of dwellings and gate lodges that are in parks and public spaces managed by the Office of Public Works, by location and occupancy, in tabular form; the duration of their occupation; the way in which these dwellings and gate lodges are allocated to persons to live in; the way in which they are allocated to companies for uses other than residential; and if he will make a statement on the matter. [47714/17]
Amharc ar fhreagra135. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he will provide a historical list of all dwellings and gate lodges disposed of by the Office of Public Works by locations and year of disposal, in tabular form; and if he will make a statement on the matter. [47717/17]
Amharc ar fhreagraI propose to take Questions Nos. 134 and 135 together.
I understand from the Deputy, that she is requesting information for the period 1990 – 2017.
Details relating to dwellings and lodges that are in parks and public spaces managed by the Office of Public Works are listed at Appendix 1. In general, these properties are allocated to OPW staff, where there is a requirement for officials to be present on the ground as part of their employment. In other cases, certain properties have been licensed for use as Tea Rooms, as part of Visitor Services on Heritage Sites. The Irish Landmark Trust hold leases on four properties.
My officials have advised that there are occasions where the properties remain occupied by retired staff and widowed spouses on compassionate grounds. Decisions in relation to extended occupancy are made on a case-by-case basis. Duration of occupancy varies from a minimum of three years to life.
With regard to the residences that are currently vacant, this is mainly due to the poor condition of these properties. They are not currently suitable for residential occupation.
In the case of Emo Court, this property is franchised as a coffee shop and the process was advertised in the local press.
I understand from my officials that in the period 1990 to the current time, the Commissioners for Public Works in Ireland have not disposed of any dwellings and gate lodges in parks and public spaces.
Appendix 1. Dwellings and Lodges in parks and public spaces, managed by the Office of Public Works. 13/11/2017
|
Location |
Occupied |
Vacant |
|
National Botanic Gardens |
5 |
1 |
|
St. Enda’s/Pearse Museum |
- |
1 |
|
Kilmacurragh Arboretum |
1 |
- |
|
JFK Arboretum |
1 |
- |
|
Castletown House & Demesne |
4 |
- |
|
Farmleigh |
3 |
- |
|
Phoenix Park |
34 |
6 |
|
War Memorial Garden’s |
1 |
- |
|
Military Cemeteries |
- |
2 |
|
St. Stephen’s Green Park |
1 |
- |
|
Iveagh Garden’s |
- |
1 |
|
Doneraile Court |
- |
4 |
|
Emo Court |
4 |
3 |
|
Heywood Garden’s |
- |
1 |
|
Anne’s Grove |
2 |
1 |
|
Oldbridge House & Estate |
1 |
- |
|
Fota Arboretum |
1 |
- |
|
Garinish Island |
2 |
- |
|
Swiss Cottage |
1 |
- |
