Written Answers Nos. 42-65
42. Deputy Ruth Coppinger asked the Minister for Housing, Planning and Local Government if he will report on the opening of emergency winter beds for persons that are on street homeless; and if he will make a statement on the matter. [52260/17]
Amharc ar fhreagraAt last September's Housing Summit, I emphasised the need for all housing authorities to have sufficient capacity in emergency accommodation and to have appropriate facilities in place for every person sleeping rough, on any night of the week.
I instructed the Dublin Region Homeless Executive, at that time, to set about ensuring the delivery of 200 additional permanent emergency beds by Christmas, in a range of new facilities across the city. 50 of the 200 permanent beds are now in place and the remaining 150 emergency beds will be brought into use over the coming days, with all being in place by mid-December.
As the weather becomes colder, my Department has also been working with local authorities to ensure that their Cold Weather Initiatives are in place. These arrangements ensure that additional temporary beds can be brought into use across a range of existing services and facilities for singles and couples, who need them during periods of cold weather.
In addition to the 200 new permanent beds that will be in place over the coming two weeks in Dublin, there are also more than 50 temporary beds in place, if required during the cold weather. In Cork, there are an additional 25 temporary beds in place, while in Galway an additional 34 temporary beds are in place. In Limerick, an additional 10 temporary beds are in place and in Waterford 9 additional temporary beds are also in place.
The long-term solution to the current homeless crisis is, clearly, to increase the supply of homes for those who need them. Under Rebuilding Ireland, 50,000 new social housing homes will be delivered over the period to 2021, supported by €6 billion in funding.
A key mechanism for dealing with homeless individuals is through the Housing First Programme, which supports homeless individuals move from emergency accommodation to independent living. 180 tenancies have been established under this Programme to date.
This programme is being prioritised and it is expected that a National Director of Housing First will be appointed shortly to drive the programme. This post will be critical in supporting those who sleep rough or reside in hostel accommodation to enter into independent living arrangements.
43. Deputy Michael Harty asked the Minister for Housing, Planning and Local Government the timeframe for the proposal to fast-track planning for data centres. [50381/17]
Amharc ar fhreagraI intend to amend the Planning and Development Act 2000, as amended, as soon as possible in order to classify data centres above a specified threshold as strategic infrastructural developments.
This change will mean that applications for planning permission for specified data centres will be made directly to An Bord Pleanála and will not have to be submitted to the relevant local planning authority in the first instance with the possibility of a subsequent appeal to the Board.
I propose to table the necessary legislative amendments in this regard by way of Seanad Committee Stage amendments to the Planning and Development (Amendment) Bill 2016 which is presently at Dáil Report Stage and which it is expected will be enacted in early 2018.
44. Deputy John Curran asked the Minister for Housing, Planning and Local Government if the local authority housing construction programme will be made more transparent; if he will include expected completion dates with all schemes which would result in clearly identifying the schemes that will be completed in 2018 (details supplied); and if he will make a statement on the matter. [52192/17]
Amharc ar fhreagraIn publishing Social Housing Construction Status Reports, my Department is being transparent in relation to the status, at each quarter, of all approved social housing construction projects. The information provided includes details of each project, whether completed, on site, at procurement or at earlier stages of advancement.
With the funding made available in Budget 2018, the aim is to meet the housing needs of almost 25,500 households during 2018. Central to this delivery will be the construction of 3,800 new homes by local authorities and approved housing bodies, through direct build, turnkey developments, rapid delivery and regeneration programmes.
The Quarter 3, 2017 Social Housing Construction Status Report shows that at the end of September 2017, there were over 3,600 new homes on site and under construction and a further 2,000 new homes with approval to appoint contractors and move onto the construction phase. That latest status report is available on my Department’s website at the following link:
http://rebuildingireland.ie/news/housing-construction-report-q3/.
It will be these schemes that will form the basis for the delivery of the 3,800 homes targeted through new builds in 2018. The precise timing for the advancement of each of these projects, including completion dates and tenanting, is a matter for the relevant local authorities and approved housing bodies concerned, in the first instance. While delays can and do arise with individual projects, my Department, working with the local authorities and approved housing bodies, is ensuring that the necessary quantum of projects are in place to meet our 2018 construction delivery targets. Further project approvals are being added to the construction programme as they are developed by local authorities and approved housing bodies and will also form part of the delivery for 2018 and beyond.
45. Deputy John Curran asked the Minister for Housing, Planning and Local Government the reason for the low number of properties being offered across the four Dublin local authority areas for the repair and leasing scheme; his plans for changes to the repair and leasing scheme to increase the supply of offers in the greater Dublin area; and if he will make a statement on the matter. [52193/17]
Amharc ar fhreagraThe Repair and Leasing Scheme (RLS) was initially piloted in Carlow and Waterford and the pilot has been rolled out nationally since 23 February last. The scheme is one of a suite of measures available to local authorities to bring vacant properties back into use. Since the national roll out my Department has been working intensively with local authorities and AHBs to develop and implement the scheme. There have been a number of national and local press advertising initiatives, as well as targeted online promotion, in an effort to ensure that property owners who can benefit from the scheme are aware of the benefits.
Based on progress of the scheme reported at end September 2017, applications in respect of a total of 792 houses have been received by local authorities nationwide. A total of 30 applications have been received across the four Dublin local authorities with 23 of these properties being deemed suitable for social housing, and 7 unsuitable, following an initial evaluation. An Agreement to Lease has been signed in respect of 1 property; the process of finalising additional contracts is underway and I expect further agreements will be signed shortly. Details on the number of applications under RLS in all local authority areas are available on my Department’s website at the following link:
http://www.housing.gov.ie/housing/social-housing/social-and-affordble/overall-social-housing-provision.
The nature of RLS means that the period leading up to the signing of contracts – sourcing and inspecting the houses, and negotiation with the owner - is the slowest part of the process. All local authorities are active in sourcing and identifying potential properties and it is expected that significant numbers of contracts will be entered into once that process is complete. Once contracts are signed, delivery is estimated at between 2 and 6 months, a fraction of the time involved for any other capital acquisition or build project.
Feedback from local authorities indicates that in many cases properties requiring extensive repair work, and therefore not suitable for the RLS, have been secured under the Buy and Renew Scheme which facilitates local authorities or approved housing bodies to purchase vacant properties for social housing use. In addition, anecdotal evidence suggests that the levels of vacancy recorded as part of Census 2016 have significantly reduced in the interim, particularly in urban areas like Dublin where many habitable homes and buildings have since been occupied.
As part of my on-going review of Rebuilding Ireland, I am examining all opportunities to accelerate and improve social housing delivery, as well as initiatives to bring more vacant houses back in the use at a faster pace. The operation of the RLS pilot nationally has facilitated an appraisal of the scheme as part of this review, with a view to enhancing the operation of the scheme and ensuring increased take up and delivery. This review is on-going and revised initiatives will continue to be announced as they are finalised.
46. Deputy Eamon Ryan asked the Minister for Housing, Planning and Local Government if he has included lands currently administered by the Department of Defence in his review of publicly owned land that could be utilised for housing; and if he has had discussions with the Minister for Defence in relation to the long term optimal use of these sites. [52262/17]
Amharc ar fhreagraThe active management of the publicly owned housing land bank is part of a range of actions being progressed under the Rebuilding Ireland Action Plan for Housing and Homelessness, designed to accelerate and increase housing output. This is complementary to actions already undertaken to streamline the planning process, reform development contributions, and invest some €226 million in enabling infrastructure, through the Local Infrastructure Housing Activation Fund (LIHAF), to facilitate and accelerate housing delivery.
On 27 April 2017, details of some 1,700 hectares of land in local authority and Housing Agency ownership were published on the Rebuilding Ireland Housing Land Map, with the potential to deliver some 42,500 homes nationally. The map also includes details of some 300 hectares of land in ownership of other State or semi-State bodies, with the potential to deliver a further 7,500 homes. This mapped list includes a Department of Defence site in Mullingar, Co. Westmeath. All of the mapped sites can be viewed at the following link:
http://rebuildingireland.ie/news/rebuilding-ireland-land-map/.
In the context of his new role in driving and co-ordinating housing delivery, my colleague Minister of State Damien English will chair the State Land Management Group which will reconvene early in the New Year to, inter alia, oversee delivery of housing from the State land bank. In this regard, my Department will continue to engage with other Government Departments and State and semi-State bodies to pursue the long-term optimal use of appropriate sites for residential purposes.
47. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government further to Parliamentary Question No. 1358 of 7 November 2017, if he will reconcile the data on voids contained therein and in the 2016 NOAC report; and if an assurance will be provided that there is no double counting of regular voids and long term voids in his annual social housing output figures for 2014 to 2017. [52165/17]
Amharc ar fhreagraThe 2016 NOAC report published in November 2016 refers to Performance Indicators in Local Authorities 2015. The figures in the report, indicating the percentage of local authority housing stock not tenanted at end 2015, are based on the number of vacant units at the end of 2015, regardless of the reason for non-occupation or the length of time the dwelling has been unoccupied.
My Department's figure refers, however, to the number of units that were funded under the voids programme in a four year period. While it is likely that some of the units vacant at 31 December 2015 may have been the subject of voids programme funding in 2016 or 2017, there is no direct relationship between the two figures. The voids programme is focused on addressing vacant housing stock in need of far greater levels of repair than normal re-letting works, to bring them up to a suitable letting condition.
48. Deputy Charlie McConalogue asked the Minister for Housing, Planning and Local Government further to a commitment given by an Taoiseach on 21 November 2017 that the report on defective blocks will be discussed at Cabinet before Christmas 2017, the position regarding the nature of the report he plans to bring to Cabinet before Christmas; if he will bring specific proposals to Cabinet; if the Cabinet will be discussing and asked to agree on the principal of establishing a redress scheme; the date on which he will present the report to Cabinet; and if he will make a statement on the matter. [52070/17]
Amharc ar fhreagraThe Expert Panel on concrete blocks was established by my Department in 2016, to investigate problems that have emerged in the concrete blockwork of certain dwellings in Counties Donegal and Mayo.
The panel had the following terms of reference:
(i) To identify, insofar as it is possible, the numbers of private dwellings which appear to be affected by defects in the blockwork in the Counties of Donegal and Mayo;
(ii) To carry out a desktop study, which would include a consultation process with affected homeowners, public representatives, local authorities, product manufacturers, building professionals, testing laboratories, industry stakeholders and other relevant parties, to establish the nature of the problem in the affected dwellings;
(iii) To outline a range of technical options for remediation and the means by which those technical options could be applied; and
(iv) To submit a report within six months.
On 13 June 2017, the report of the Expert Panel was published and included eight recommendations.
My Department is prioritising the implementation of recommendations 1 and 2.
With regard to Recommendation 1, the National Standards Authority of Ireland (NSAI) Technical Committee, established to scope and fast track the development of a standardised protocol, held its inaugural meeting on 11 September 2017 and has held several further meetings since. The standardised protocol will inform the course of action in relation to remedial works for all affected householders. My Department understands from the NSAI that the Technical Committee is in the process of finalising the standardised protocol, which will be available for public consultation shortly.
With regard to Recommendation 2, my Department has been in contact with Engineers Ireland in relation to the establishment of a register of competent engineers for homeowners/affected parties’ reference. Engineers Ireland have provided assurance that they will collaborate with the Department, the NSAI and others on measures to establish such a register.
During July this year, I visited Donegal and Mayo and met with key stakeholders, including affected homeowners, elected members and officials of the local authorities and other interested parties.
In addition, and in light of the information contained in the report, I am currently considering what further actions may be required to assist the parties directly involved in reaching a satisfactory resolution to the problems that have emerged in the two counties. Once completed, any issues requiring Cabinet approval will be brought to Government.
49. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the findings of the 2013 departmental review into shared ownership schemes; the reason the report was never published; the actions he took following the report; and the advice that is being given to councils dealing with distressed shared ownership mortgages. [52164/17]
Amharc ar fhreagraIn 2011, the Government announced the standing down of all affordable housing schemes, including the shared ownership scheme. From 1991 to 2010, a total of 16,492 loans were issued under the scheme, of which 3,585 remained at the end of Q1 2017.
A review of the shared ownership scheme was undertaken in 2013. The review was not intended for publication and was a report for internal use only.
Following the review, my Department together with the Housing Agency, the Housing Finance Agency and local authorities, considered the affordability issues facing some borrowers, who purchased properties under the shared ownership schemes and devised a more affordable long-term path towards full home ownership. Indeed, a range of measures have already been undertaken to reduce the monthly payments of shared ownership borrowers.
The index linked shared ownership scheme, which operated from 1999 until 2002, has been revised with regard to the annual indexation of the rental equity balance and rental payments. The amendments, which came into effect on 1 July 2015, reduce the monthly cost for these borrowers and avoid rental equity balances increasing for the remaining term. My Department has issued directions to local authorities outlining the measures and I understand that these changes are being applied to individual loan accounts.
In addition, the variable mortgage interest rate charged to local authority borrowers was reduced to 2.3% with effect from 1 July 2016, which has helped many shared ownership borrowers.
An innovative shared ownership restructuring option has been available to shared ownership borrowers since 1 April 2016, and involves rolling-up all outstanding debt under a share ownership arrangement into a single annuity loan. The term of the annuity loan will be determined by the amount of the monthly repayment deemed to be affordable and sustainable for each shared ownership borrower. This restructuring option allows the borrower to have a regularised, restructured repayment solution, which is more easily understood. This arrangement may be of particular benefit to those shared ownership borrowers who are nearing the end of their annuity term but who have not made sufficient provision for the repayment of their rental equity balance. The feasibility of this new option for each shared ownership borrower will be determined by their local authority, and may not be appropriate in all cases. For example, in some instances, continuing with the current shared ownership arrangement may be the best option for both the shared ownership borrower and the local authority, or in other cases where the outstanding debt may not be sustainable for the borrower in the long-term, the Local Authority Mortgage to Rent (LAMTR) option might ultimately be the appropriate solution.
There is no obligation on any shared ownership borrower to restructure their loan arrangement and local authorities in implementing the restructuring option will direct shared ownership borrowers to seek financial and legal advice prior to accepting any offer of a restructuring option. The new Abhaile Service, accessed via MABS, can assist shared ownership borrowers who are in arrears to access free independent expert financial and legal advice. Full details of the supports offered by the Abhaile Service are available from https://www.mabs.ie/en/abhaile/.
Under the restructuring option, where shared ownership borrowers require financial and legal advice outside of that provided via MABS, local authorities will arrange to pay the cost of these fees to a maximum of €1,000, excluding VAT. Detailed guidance, training and direction have been provided by my Department and the Housing Agency to local authorities regarding the implementation of the measure and my Department is continuing to monitor the impact of the new measure for borrowers.
Details on the measures available to borrowers with shared ownership arrangements are available from their local authority. Overall, local authority borrowers are encouraged to engage with their local authority at the earliest opportunity if they are having difficulties making the repayments on their shared ownership arrangement. Information in relation to the local authority mortgage arrears resolution process (MARP) and the help available to borrowers is also available on my Department's website at the following link:
http://www.housing.gov.ie/housing/home-ownership/mortgage-arrears/guidance-mortgage-arrears.
50. Deputy Bernard J. Durkan asked the Minister for Housing, Planning and Local Government the degree to which he expects to be in a position to meet the most urgent and pressing housing needs in the shortest possible time with particular reference to addressing the housing crisis; his views on whether he needs to invoke emergency legislation to address the issue; and if he will make a statement on the matter. [52280/17]
Amharc ar fhreagraRecognising the serious challenge we face in terms of housing, the Government has prioritised the development and implementation of the Rebuilding Ireland Action Plan for Housing and Homelessness. Rebuilding Ireland is a €6 billion, multi-annual, broadly based action plan which seeks to increase the overall supply of new homes to 25,000 per annum by 2020; deliver an additional 50,000 social housing units in the period to 2021; and meet the housing needs of some 87,000 households through the Housing Assistance Payment (HAP) scheme.
Strong progress on implementation is already being made. On the social housing construction front, we have a programme of works on 770 sites that will deliver over 12,300 new homes, with the number of schemes in the programme growing on a weekly basis. Clearly, we want to see a greater emphasis on direct building of social housing than was envisaged originally under Rebuilding Ireland. In this regard, we will see almost 5,000 new social homes built in 2018, including 3,800 by local authorities and Approved Housing Bodies (AHBs).
In addition to the established local authority and AHB direct-build programme, activity continues apace across a range of other measures, including for example, acquisitions by local authorities and AHBs, the Housing Assistance Payment scheme and the Rental Accommodation Scheme, which are delivering tangible housing solutions for thousands of households. The target for 2017 is for the needs of over 21,000 households to be met through the full range of social housing programmes and I believe that this will be comfortably exceeded. Progress on delivery is published by my Department on a quarterly basis and a full output report across all schemes is provided on an annual basis.
Beyond social housing, all relevant indicators – including planning permissions, construction commencement notices and connections to the ESB grid - are showing very significant upward trends in home-building activity.
I am satisfied the Rebuilding Ireland Action Plan, together with initiatives announced on foot of the targeted review of progress which was undertaken over recent months, as well as additional measures announced under Budget 2018, provide a robust framework for addressing the housing and homelessness challenges we face. My focus and that of all delivery agents will remain firmly on implementation and delivery to ensure that the range of objectives and targets set are achieved.
51. Deputy Richard Boyd Barrett asked the Minister for Housing, Planning and Local Government his plans to take vacant properties into public ownership in view of the worsening homeless emergency; and if he will make a statement on the matter. [52268/17]
Amharc ar fhreagra52. Deputy Bríd Smith asked the Minister for Housing, Planning and Local Government when he will introduce measures to deal with the numbers of vacant homes here; when he will have accurate figures for same; and if extra funding will be made available for local authorities and approved housing bodies to acquire or compulsory purchase such units. [52275/17]
Amharc ar fhreagraI propose to take Questions Nos. 51 and 52 together.
With regard to data on vacant homes (excluding holiday homes), Census 2016 indicates that there were 183,312 dwellings identified as vacant on the Census night of 24 April 2016. However, anecdotal evidence suggests that the levels of vacancy recorded as part of Census 2016 have significantly reduced in the interim, particularly in urban areas where many habitable homes and buildings have since been occupied.
With a view to addressing the vacancy situation, I asked all local authorities to draw up Vacant Homes Action Plans for their areas, to designate Vacant Homes Officers to co-ordinate actions on addressing vacancy, to examine Census 2016 and other more up-to-date data on vacant homes for the purpose of deriving the up to date position on vacancy in their areas, particularly in priority vacancy hotspot areas where housing demand is most acute, to engage with owners to bring empty homes back into use, and to set ambitious but realistic targets for the vacant dwellings that can be brought back into use whether for sale or rent or for social housing purposes.
In this context, I asked that the Vacant Homes Action Plans for all local authorities in the Dublin area and the other four main cities (Cork, Limerick, Galway and Waterford) be devised as urgently as possible with a deadline for other County Action Plans to be completed by end January 2018.
Complementary to this, my Department has introduced a number of significant measures under pillar 5 of the Government's Rebuilding Ireland Action Plan to incentivise the increased use of vacant housing stock. These initiatives include the
- Repair and Leasing Scheme (with funding of €140m in the period to 2021),
- Buy and Renew Scheme (with initial funding in the years 2017 and 2018 of up to €75m), and
- Housing Agency Acquisitions Fund (revolving fund of €70m operated by the Housing Agency for the purchase of vacant buy-to-let properties on the portfolios of financial institutions for social housing use).
In terms of funding to acquire properties, supports have been made available under Rebuilding Ireland to all local authorities to deliver additional social housing stock through new construction projects and through the acquisition of new and previously owned houses/apartments for social housing use, including through working with approved housing bodies.
As part of their acquisition and development of social housing, local authorities have full scope to acquire and remediate vacant homes, alongside acquiring standard second hand homes and constructing new homes. The number of vacant homes to be acquired and remediated is a matter for local authorities to consider, in the first instance, in the context of their overall social housing delivery programmes.
I will continue to monitor opportunities for further measures to assist in addressing vacancy, including taking vacant properties into public ownership where feasible.
53. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on whether legislation being enacted or proposed by the British Government will not impact on aspects of the Good Friday Agreement; and if he will make a statement on the matter. [52502/17]
Amharc ar fhreagraThe Government is determined to ensure that the Good Friday Agreement in all its parts is fully protected and respected in the context of the UK’s withdrawal from the EU and this has been a headline priority since the UK referendum result. As co-guarantor of the Good Friday Agreement, the Government has a solemn responsibility to protect the Agreement in all its parts and the gains of the Peace Process which have been of immeasurable benefit to the entire island, north and south.
The British Government has likewise confirmed its commitment to upholding the Good Friday Agreement, including in Prime Minister May’s Article 50 notification to the President of the European Council, Donald Tusk, in March, and in more recent pronouncements.
The British Government has proposed a number of pieces of draft legislation relating to the UK’s Withdrawal from the European Union, which are being considered at Westminster. My Department, including through the Embassy in London, is actively following the progress of these bills in the UK parliament, as is usually done with all draft legislation of interest for Ireland.
54. Deputy Bernard J. Durkan asked the Minister for Finance if tax liabilities accruing from the renting out of a family home in the case of a person (details supplied) can be offset against the rent paid for an alternative family home during the same period; and if he will make a statement on the matter. [52338/17]
Amharc ar fhreagraThere is no legislative basis on which the offset proposed by the Deputy could be allowed. The Deputy will be aware that landlords are liable to tax on their net rental profit after deduction of allowable letting expenses, and not on the gross rental income received. As regards properties that are rented, currently a landlord may be allowed a deduction of 80% of the interest paid on borrowed money used to purchase, improve or repair rented premises when calculating rental income. From 1 January 2018, this will increase to 85% and there will be further annual incremental increases of 5% until full 100% deductibility is restored from 2021. These increases were provided for in last year’s Finance Bill.
There are also a number of other allowances and deductions available to reduce the tax on rental income paid. These include, for example, the cost to the landlord of any goods provided or services rendered to a tenant and the cost of maintenance, repairs, insurance and management of the property. The Office of the Revenue Commissioners has published information on its website on the income tax treatment of rental income. It sets out the amount of rental income to be taken into account for income tax purposes and provides a comprehensive list of expenditure items that are allowable for deduction in computing rental income for tax purposes. This information is available at:
https://www.revenue.ie/en/property/rental-income/irish-rental-income/index.aspx.
The Deputy may also be aware that in Finance Act 2015, a new relief was introduced which allows a full 100% mortgage interest deduction where a landlord undertakes, for a period of at least three years, to provide accommodation to tenants in receipt of social housing supports and registers such undertakings with the Private Residential Tenancies Board within certain time limits. Further information on this relief is available in section 97 of the Revenue Commissioners – Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2016 Edition – Part 4 Principal Provisions Relating to the Schedule D charge, which is available at:
https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part04.pdf.
The taxation of all rental property in the State is dealt with under the same legislation, and an attempt to carve out a cohort of landlords as described by the Deputy would prove problematic. There are many reasons why individuals might choose, or feel obliged, to rent a property while putting their own mortgaged property out to rent, such as relocation for work purposes or changed family circumstances, and all are treated equally by the tax system. The provision of additional tax deductions to one sub-set of landlords could create difficulties in the rental marketplace as a result of the advantage obtained over other landlords of similar residential property.
The Deputy may be aware that a Working Group which was set up to examine and report on the tax treatment of landlords (or rental accommodation providers) recently published its report and it is available on the Budget 2018 website at the following link:
http://www.budget.gov.ie/Budgets/2018/Documents/Report_of_the_Working_Group_on_the_Tax_and_Fiscal_Treatment_of_Landlords.pdf
The Group was chaired by the Department of Finance and its membership included the Department of Housing, Planning and Local Government (DHPLG), Revenue and the Residential Tenancies Board (RTB).
I am conscious of the challenges that individuals continue to face, despite the improving economic conditions. However, I would also note that the changes to the income tax system included in the last four Budgets mean that most individuals have seen reductions in their income tax bills for four successive years, where incomes are equal.
55. Deputy Sean Fleming asked the Minister for Finance if his attention has been drawn to the fact that banks insert into all mortgage-to-rent agreements that the bank or financial institution can come back to the person who participates in the scheme for the balance of the mortgage; and if he will make a statement on the matter. [52340/17]
Amharc ar fhreagraAs the Deputy will be aware, the Department of Finance does not have a role in administering the Mortgage to Rent (MTR) Scheme, which is the responsibility of the Department of Housing, Planning and Local Government and the Housing Agency.
The Central Bank have informed me that they do not have a role in relation to whether banks insert into all mortgage to rent legal documents that the bank or financial institution can come back to the person that participates in the scheme for the balance of the mortgage.
The Department of Housing, Planning and Local Government and the Housing Agency have informed me that they always make it clear in operating the MTR scheme that any debt remaining after the sale of the property by the lender to an Approved Housing Body (subsequent to its voluntary surrender by the borrower to their lender) is a contractual matter between the lender and the borrower. The operator of the scheme does not have sight of how lenders treat the residual debt and does not nor could it impose any obligation on lenders in this regard. Rather the focus of the scheme, which is a social housing option, is to keep people eligible for social housing support in their homes where possible.
56. Deputy Michael McGrath asked the Minister for Finance the number of tax appeals before the Tax Appeals Commission; the value of tax these disputes amount to; the appeals by the number below €10,000, between €10,000 and €50,000, between €50,000 and €1 million, between €1 million and €5 million and the number above €5 million, respectively, in tabular form; and if he will make a statement on the matter. [52359/17]
Amharc ar fhreagra57. Deputy Michael McGrath asked the Minister for Finance the age and value of tax appeals before the Tax Appeals Commission by those aged 0 to 1 year old, between 2 and 5 years old, between 6 and 10 years old and those more the 10 years old, respectively, in tabular form; and if he will make a statement on the matter. [52360/17]
Amharc ar fhreagra58. Deputy Michael McGrath asked the Minister for Finance the number of new appeals brought before the Tax Appeals Commission in each month since January 2016; the number of cases concluded in each month since January 2016; and if he will make a statement on the matter. [52361/17]
Amharc ar fhreagra59. Deputy Michael McGrath asked the Minister for Finance the number of appeals before the Tax Appeals Commission that have been concluded since January 2016 that have been settled; the value settled; the number that have been withdrawn; the value these amounted to; the number of cases that have been heard; the value these appeals amounted to; and if he will make a statement on the matter. [52362/17]
Amharc ar fhreagra60. Deputy Michael McGrath asked the Minister for Finance the average timeframe it takes for a tax appeal in the Tax Appeals Commission to take from the submission of the appeal to its conclusion; the average timeframe it takes between a hearing being heard and the determination been made; and if he will make a statement on the matter. [52363/17]
Amharc ar fhreagraI propose to take Questions Nos. 56 to 60, inclusive, together.
Unfortunately it has not been possible to compile the information requested by the Deputy in the time available. I will write to the Deputy directly with the information as soon as possible.
61. Deputy Michael McGrath asked the Minister for Finance the number of full-time tax commissioners working for the Tax Appeals Commission; the number of part-time commissioners; the number of all other staff both part-time and full-time working for the commission; and if he will make a statement on the matter. [52364/17]
Amharc ar fhreagraSince its establishment in March 2016, the Tax Appeals Commission (TAC) has had two full time Commissioners. An additional temporary Commissioner was appointed in June 2017 for a period of at least two years to assist mainly in the disposing of the legacy cases which transferred to the TAC from the Revenue Commissioners.
The Commission currently comprises the following administrative staff in addition to the aforementioned Commissioners:
Principal Officer: 1
Assistant Principal: 2
Higher Executive Officer: 1.5
Executive Officer: 2
Clerical Officer: 3.
The TAC has a recruitment campaign underway in conjunction with the Public Appointments Service to engage tax-qualified staff to assist with tax appeals.
62. Deputy Michael McGrath asked the Minister for Finance the annual interest charged on appeals outstanding that are with the Tax Appeals Commission; if interest is paid by the Revenue Commissioners for holding money that has been determined by the Tax Appeals Commission as being wrongfully collected; if so, the annual interest rate; and if he will make a statement on the matter. [52365/17]
Amharc ar fhreagraI am advised by Revenue that while a matter is subject to an appeal to the Tax Appeals Commission, the collection of the amount of tax that is in dispute is suspended until the appeal is determined by the Tax Appeals Commission. Where the Tax Appeals Commission find in favour of Revenue, and the tax is found to be due and payable, the original due date in respect of that tax continues to apply for interest purposes. Appellants can make protective payments to Revenue in advance of the determination to minimise their potential exposure to interest charges.
Interest payable on outstanding income tax, corporation tax and capital gains tax in respect of a given period of late payment is set out in section 1080 of the Taxes Consolidation Act 1997 (TCA 1997). The current interest rate on overdue tax in respect of income tax, corporation tax, capital gains tax, gift and inheritance tax is currently 0.0219% per day which equates to an annual rate of 7.92%. The current interest rate on overdue tax in respect of taxes such as VAT and PAYE is currently 0.0274% per day, which equates to an annual rate of 10%, as set out in section 114 of the Value Added Tax Consolidation Act 2010 (VATCA 2010) and section 991 of the TCA 1997.
Where the Tax Appeals Commission finds in favour of the appellant there may be an overpayment of tax to be repaid. Section 865A of TCA 1997 states that where a repayment of direct taxes arises to a taxpayer for a chargeable period due to a mistaken assumption by Revenue in applying tax legislation, interest is payable on the amount overpaid for each day after the end of the period in question or, if later, the date on which the tax was paid, until the date on which the repayment is made. Interest is payable at the rate of 0.011% per day, which equates to an annual rate of 4.015%. Section 105 of the VATCA 2010 provides for the same rate in respect of VAT refunds as a result of a mistaken assumption by Revenue. Interest is not payable in these circumstances where the overpaid tax is offset against outstanding tax and/or returns are outstanding or where the amount of interest is less than €10.
63. Deputy Michael McGrath asked the Minister for Finance the position regarding the European VAT rules for newspapers and print media; if it is possible under the current or proposed rules to move the industry to zero rated; if it will remain the case that a country is only permitted two lower rates of VAT; and if he will make a statement on the matter. [52368/17]
Amharc ar fhreagraWhile various proposals on VAT rates have taken place, and are due to take place, at EU level, the current EU VAT rules remain. Each Member State must apply a standard VAT rate of 15% or more, and can apply up to two reduced VAT rates of more than 5%. Ireland applies the 23%, 13.5% and 9% VAT rates in this context. Member States may also retain historic VAT rate treatment where such VAT rating was in place on and from 1 January 1991. Ireland’s 4.8% super-reduced rate and the zero rate, and most of the activity applying at the 13.5% rate, fit into this category.
The historical VAT rates, including the zero rate, cannot apply to new goods and services that were not charged at those rates in 1991. As newspapers were not charged at the zero rate of VAT on 1 January 1991, it is not possible to apply the zero rate to them now. Books were charged at the zero rate before 1991, and so they continue to avail of the zero rate. Furthermore, EU law provides that electronically supplied books or newspapers must be charged at the standard VAT rate (23% in Ireland).
On 1 December 2016, as part of the Digital Single Market strategy and the VAT Action Plan, the Commission published four proposals that aimed to modernise VAT on e-commerce. Included in this package was a proposal to modernise and harmonise the VAT rating of books and publications so that Member States would have the power to apply any rate, including the zero rate, to books and publications supplied electronically or in physical format. This proposal was brought forward for agreement at ECOFIN on 16 June 2017, but was vetoed because of a dispute between two Member States. The Estonian Presidency focused on the other three VAT on e-commerce proposals, which were adopted on 5 December 2017, but the e-books proposal has not been revisited since the June ECOFIN meeting.
However, the Commission is due to publish a general VAT rates proposal in January 2018. It is expected that the proposal will aim to relax the ruling governing the application of VAT rating by EU Member States. This comes in the light of the move to charging VAT on cross-border EU trade in the country of the consumer, where VAT rating is less of a competitive advantage.
The future VAT rating of newspaper and print media will depend on the outcome of these proposals.
64. Deputy Michael Fitzmaurice asked the Minister for Finance the stamp duty that applies to a site of less than one acre which is intended for one off housing; and if he will make a statement on the matter. [52382/17]
Amharc ar fhreagra65. Deputy Michael Fitzmaurice asked the Minister for Finance if a site of less than one acre that is used for the development of one dwelling within 30 months can qualify for the refund scheme under the Finance Act 2017; the conditions that must be satisfied prior to the refund; and if he will make a statement on the matter. [52383/17]
Amharc ar fhreagraI propose to take Questions Nos. 64 and 65 together.
As they both relate to the Stamp Duty treatment of the acquisition of a site of less than an acre which is intended for one off housing.
I am advised by Revenue that, based on the information provided, the site would be treated as non-residential property at the time of acquisition. The rate of Stamp Duty on the purchase or voluntary transfer of non-residential property was increased to 6% by way of Budget Day Resolution and applies in relation to all relevant conveyances executed after midnight on Budget day.
During the Report Stage of Finance Bill 2017, I introduced a Stamp Duty refund scheme. This scheme is intended to stimulate the provision of residential accommodation by providing for a partial refund of stamp duty paid on the acquisition of land where that land is used for the development of housing.
In relation to a site used for a single house, the scheme will allow for a refund of 2/3 of the stamp duty paid on the acquisition of the site where the area occupied by the house, including its curtilage, does not exceed 1 acre (.4047 Hectares). Where the area of the site exceeds this amount the refund will be capped at 2/3 of the amount referable to .4047 Hectares.
The main conditions for availing of the refund are that the purchaser must have paid 6% stamp duty when acquiring the land, construction work must have commenced within 30 months of the land being purchased and the house must be completed within two years of the commencement of construction.
