Written Answers Nos. 142-160
142. Deputy Marcella Corcoran Kennedy asked the Minister for Finance his plans to reintroduce a tax incentive scheme similar to the section 23 scheme to increase housing supply and promote urban renewal; and if he will make a statement on the matter. [5778/18]
Amharc ar fhreagraThe use of tax incentives and reliefs, ideally in accordance with the tax expenditure guidelines published by my Department, is one of a number of potential approaches that can be adopted to deal with the issues mentioned by the Deputy.
Recognising the serious challenge we face in terms of housing supply, the Government has prioritized the development and implementation of the Rebuilding Ireland Action Plan for Housing and Homelessness.
The Plan which is supported by €6 billion in ring-fenced funding is a 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. All housing activity indicators point to housing supply recovering and increasing providing evidence that the measures introduced to date are having a positive impact.
On 22 January, my colleague Minister Murphy announced a further package of initiatives under the Plan, to help alleviate affordability pressures faced by households, particularly in areas of high housing demand and high accommodation costs. The new local authority mortgage and affordable housing supply measures are designed to enable low- to moderate-income households that do not qualify for social housing supports, to purchase or rent homes. Further details on this suite of initiatives are available at the following link:
http://rebuildingireland.ie/news/min-murphys-statement-on-affordable-homes/.
Section 23 relief was previously available under the now terminated area-based property incentive schemes such as the Urban Renewal scheme. The final date for carrying out construction, refurbishment or conversion work, the expenditure on which could qualify for Section 23 relief, was 31 July 2008.
There are currently no plans to re-introduce a Section 23 type relief for rented residential property.
However, there are a number of tax incentives currently in operation which aim to address the issues of housing supply and the promotion of urban renewal.
The Living City Initiative (LCI) is a scheme which provides tax relief for expenditure on refurbishment and conversion work that is carried out on either residential properties or certain commercial properties which are located in pre-defined Special Regeneration Areas.
The Initiative targets particular urban areas that are most in need of regeneration, especially inner city areas, which are largely comprised of dwellings built before 1915 which demonstrate clear evidence of neglect, dereliction and under-use.
LCI was announced in Budget 2013 and commenced in May 2015. Changes were made to the scheme in Finance Act 2016 that came into effect from January 2017. These included extending the residential element of the scheme to landlords, who will now be able to claim the relief by way of accelerated capital allowances for the conversion and refurbishment of properties which were built prior to 1915 to be used for residential purposes.
Eligible expenditure must be incurred during the relevant qualifying period which began on 1 January 2017 and will terminate on 4 May 2020, which is the pre-existing end-date for the scheme.
Further information on the scheme can be found on the Revenue website:
https://www.revenue.ie/en/property/living-city-initiative/index.aspx .
A number of other measures have been introduced in recent years to boost housing supply and promote urban regeneration. These include the Home Renovation Incentive, the Pre-letting Expenditure for Vacant Properties, the Help to Buy scheme and the Stamp Duty Refund scheme.
The Home Renovation Incentive (HRI) was introduced on 25 October 2013 to promote the renovation, repair and improvement of the residential stock. The scheme was extended from 15 October 2014 to include renovation, repair and improvement of rental properties whose owners are liable to income tax. The scheme was further extended to local authority tenants from 1 January 2017. Only works carried out by a tax compliant contractor qualify under the incentive.
HRI provides for a tax credit where the VAT exclusive spend on a qualifying property is at least €4,405. The tax credit represents 13.5% of the total cost of works subject to a maximum credit of €4,050.
Further information on the scheme can be found on the Revenue website:
https://www.revenue.ie/en/property/home-renovation-incentive/hri-for-homeowners-and-landlords/index.aspx .
In Budget 2018 I announced a new, time-limited deduction for pre-letting expenses incurred on properties that have been vacant for one year or more. The purpose of this relief is to encourage owners of vacant property to bring that accommodation into the rental system, thereby increasing the overall supply of residential accommodation. This relief was one of the options put forward by the Working Group on the Tax and Fiscal Treatment of Landlords which published its report on Budget Day last year.
The report is available at the following link:
http://www.finance.gov.ie/wp-content/uploads/2017/10/171010-Report-of-the-Working-Group-on-theTax-and-Fiscal-Treatment-of-Landlords.pdf .
The Help to Buy (HTB) incentive was designed to increase the demand for newly built houses by alleviating some of the specific challenges faced by first time buyers in accessing the housing market. Its aim is to provide immediate, targeted and time-bound support for first time buyers in meeting their deposit requirements.
Where a first-time buyer buys or builds a new home, HTB provides a refund of the income tax and DIRT that they paid over the previous four years.
The amount that can be claimed per property is capped at the lesser of:
- €20,000,
- 5% of the purchase value,
- the amount of income tax and DIRT paid by the first-time buyer(s).
Further information on the scheme can be found on the Revenue website:
https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
Finally, in Budget 2018, I increased the rate of stamp duty on the purchase of non-residential land and buildings from 2% to 6% while leaving the rate of duty on residential buildings at 2%. A related measure intended to further incentivise the supply of housing was subsequently included in the Finance Act. This scheme provides that land chargeable at the new 6% rate on its purchase and subsequently developed for residential purposes can qualify for a refund of the difference between the 6% and 2% rates, subject to certain conditions designed to ensure that the land is optimally utilised to deliver residential property within a reasonable timeframe.
143. Deputy Brian Stanley asked the Minister for Finance if he raised with the insurance industry the practice of refusing of insurance cover to drivers of cars over ten years of age even though the vehicle has a valid National Car Test certificate; the reason the insurance industry refuses such vehicles; the legal basis for such refusal; and if he will make a statement on the matter. [5785/18]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, 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 an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms and conditions that they should apply in respect of particular categories of drivers or vehicles.
Policy in relation to the NCT lies with the Minister for Transport, Tourism and Sport. The NCT was introduced to comply with an EU Roadworthiness Testing Directive aimed at improving road safety and environmental protection. While the NCT is one component of having safer vehicles on our roads, every vehicle owner has a personal and legal responsibility to ensure that their vehicles are roadworthy and well maintained. The NCT is an inspection or general “health check” of what is visible and accessible on the day of the test and includes a check of the roadworthiness of such safety features, amongst others, as lighting, brakes and tyres.
The NCT is a minimum requirement of roadworthiness and is therefore not the only rating factor taken into account in the provision of motor insurance. Insurers will generally require that a car has a valid NCT in order to be covered. However, in making their individual decisions on whether to offer cover and what terms to apply, they will also use a combination of other rating factors, which include the age of the vehicle, as well as the type of vehicle, the age of the driver, the relevant claims record and driving experience, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to the age of a vehicle and the availability of cover, different insurance companies will use different age thresholds.
Notwithstanding the above, my officials contacted Insurance Ireland in relation to your question. In response, Insurance Ireland stated the following:
“Calculation of premium has many rating factors and age of vehicle is part of that process to determine the correct rate for the risk profile submission. The issue of age of vehicle relates to the acceptances criteria and whether some insurance providers will offer a quotation. This would be a matter of commercial discretion by each insurance provider and it should be also noted, that an insurance company/underwriter is entitled to set the level of premium for any risk or risks it has agreed to accept. Furthermore, there is no obligation on a financial service provider to disclose or divulge to its customers its specific commercial rating details.”
Finally, if a consumer is unable to secure a quotation on the open market, he or she may be in a position to avail of the Declined Cases Agreement (DCA) process. Under the terms of the DCA, the insurance market will not refuse to provide insurance to an individual seeking insurance if the person has approached at least three insurers and has not been able to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website while Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu or 01-6761914.
144. Deputy John Curran asked the Minister for Finance if he has satisfied himself that the Revenue Commissioners customs staff have adequate resources to intercept the packages coming from non-EU countries with regard to online shopping that might be liable for duty; and if he will make a statement on the matter. [5798/18]
Amharc ar fhreagraI am advised by Revenue that purchases made by online shoppers are usually imported either by express couriers or via the postal system. In the case of the express couriers, the carrier make the necessary import declarations and pay duty and VAT, where applicable, to Revenue. In respect of imports via the postal system, the parcels are produced by the postal authorities to Customs and assessed for duty and VAT. The postal authorities pay the amounts assessed to Customs and then recoup this from the importer at the time of delivery of the goods.
I am informed by Revenue that it continuously reviews the allocation of resources to various functions and that it currently satisfied that adequate resources are deployed to perform these functions. However, Revenue is very aware of the increase in online shopping and will continue to monitor trends and respond appropriately to changes in the marketplace.
145. Deputy Pearse Doherty asked the Minister for Finance if the European Union proposal to ensure certain products always attract a VAT rate of 15% will require changes in an Irish context such as on gambling; and if he will make a statement on the matter. [5808/18]
Amharc ar fhreagraOn 18 January 2018 the European Commission published a proposal on the Simplification of VAT rates, which allows greater freedom for Member States in setting VAT rates in line with the move to the definitive destination based system of VAT. The proposal provides that Member States would continue to apply a standard VAT rate of at least 15% as well as the option to operate two reduced VAT rates of 5% or more. The new proposal also makes provision for any Member States to apply a zero rate of VAT and a VAT rate of less than 5%. Ireland already operates such VAT rating under historic derogations from the existing VAT rating rules.
They also propose that a list of products to which a reduced or zero rate cannot be applied would be contained in the legislative change to ensure that products such as alcohol, weapons and tobacco will always be taxable at the standard rate as well as allowing Member States to apply tax to certain services that are currently exempted such as financial services and gambling. Within these parameters, Member States would be free to set the level of VAT rating so long as the average VAT rate applied across the board is no less than 12%.
The proposal will be discussed at European Council and must be agreed unanimously by all Member States before being adopted. It is expected that discussions on the proposal will be robust and it is likely that the final agreed text will be the subject of many compromised amendments.
In the context of changes to Irish VAT law being required, no legislative change is required upon the publication of a proposal. However, once adopted by Council and when the proposal is made law, Ireland will be required to transpose the changes contained in the legislation within a given timeframe. At that point, the Value-Added Tax Consolidation Act 2010 will be updated, as necessary, to reflect any changes to EU VAT law on VAT rating.
146. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has restrictions on the length of mortgages provided to different age cohorts of persons; if similar restrictions exist within the State-supported banks; if so, the details of such restrictions; if there is an upper limit on the age a person can be and still have a mortgage; and if he will make a statement on the matter. [5817/18]
Amharc ar fhreagraThe legal and regulatory protection framework sets out a number of measures to protect consumers who are taking out a mortgage and it seeks to ensure that lenders are transparent and fair in all their dealings with borrowers.
For example, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 provides that mortgage lenders must act honestly, fairly, transparently and professionally, and take into account the rights and interests of the consumer when carrying out a mortgage related activity. It also requires lenders to assess the creditworthiness of consumers before concluding a credit agreement and this assessment (which must be documented and maintained) must be based on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.
In addition, the Central Bank Consumer Protection Code 2012 also imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Lenders are required to assess the affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower, including the age of the borrower. Regulated entities must gather and record sufficient information from the consumer prior to offering, recommending, arranging or providing a product or service appropriate to that consumer. The level of information gathered should be appropriate to the nature and complexity of the product or service being sought by the consumer, but must be to a level that allows the regulated entity to provide a professional service and must include details of the consumer’s needs and objectives, personal circumstances (including age), and financial situation. Prior to offering, recommending, arranging or providing a credit product to a personal consumer, a lender must carry out an assessment of affordability to ascertain the personal consumer’s likely ability to repay the debt, over the duration of the agreement.
Outside of this legal and regulatory framework the Central Bank advises that it does not have specific guidelines or requirements regarding a restriction on the length of the term of mortgages for different age categories or limits on the age of borrowers. Of course, subject to compliance with the legal and regulatory framework governing the provision of mortgages to consumer borrowers, it will be a commercial matter for individual lenders to set their own lending policies and to make their own individual mortgage lending decisions.
147. Deputy Michael McGrath asked the Minister for Finance if the Central Bank collects data on mortgage refusals by mortgage lenders here; if so, the most recent data for same by the reason for the rejection; and if he will make a statement on the matter. [5818/18]
Amharc ar fhreagraPrior to offering a residential mortgage loan to a consumer borrower, mortgage lenders are required to carry out a credit worthiness assessment and to offer mortgage credit only where the result of the assessment indicates that the consumer is likely to meet his/her obligations in the manner required by the credit agreement. The mortgage lender is also obliged to ensure that the procedures and information on which the assessment is based are established, documented and maintained. However, subject to complying with all relevant legal and regulatory requirements, it remains a commercial matter for each lender to make its own underwriting decisions on individual loan applications. Regarding industry data on this matter, the Central Bank advises that it does not collect data on mortgage loan refusals by lenders.
149. Deputy Éamon Ó Cuív asked the Minister for Finance his plans to regulate or legislate to ensure that it would be illegal to load van and car insurances solely based on a person being 70 years of age or over; and if he will make a statement on the matter. [5880/18]
Amharc ar fhreagraAt the outset, I wish to inform the Deputy that I have no plans to legislate on this particular issue. 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 has been brought to my attention that some policyholders, particularly older persons, are continuing to experience increases in their insurance premiums in spite of the fact that prices are generally in decline. I have received representations on this topic, while there also have also been a number of Parliamentary Questions tabled.
Accordingly, my officials have discussed this matter with Insurance Ireland previously. In response, it indicated that it had not discerned a particular trend from enquiries received through its helpline in relation to this topic. Insurance Ireland has also pointed out that in making their individual decisions on whether to offer cover and what terms to apply, insurers will, aside from the driver’s age, use a combination of other rating factors, which include the age and type of the vehicle, the relevant claims record and driving experience, the number of drivers, how the car is used, etc. In addition, Insurance Ireland has advised that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. They have also pointed out that insurers will price in accordance with their own past claims experience.
The Deputy should note that I have asked my official to engage further with Insurance Ireland in order to try to get a more detailed perspective on this matter.
Finally, it may be of interest to the Deputy that the Competition and Consumer Protection Commission website has an informative section regarding the purchase of car insurance – https://www.ccpc.ie/consumers/money/insurance/car-insurance/ - and one of the key tips listed to help cut costs is to “shop around” and to “always get quotes from several insurance providers when you need to get or renew insurance”.
150. Deputy Pearse Doherty asked the Minister for Finance if the current EU proposal on VAT rates and bands six is compatible with Ireland's existing rates and bands; if not, the way in which it is incompatible; and if he will make a statement on the matter. [5892/18]
Amharc ar fhreagraThe European Commission published a proposal on 18 January 2018 which aims to simplify VAT rating. Under existing VAT rating rules, Member States must apply a standard VAT rate of at least 15% and may apply up to two reduced VAT rates of 5% or more to a set list of socially inclined goods and services. Member States may also retain historical VAT treatment that applied before 1 January 1991, including the application of a zero rate or a rate below 5%. The same parameters apply to standard and reduced VAT rating apply under the new proposal, however, Member States will be in a position to apply reduced rates to the majority of goods and services, and not just to a small list of activities. The proposed new system also allows all Member States the option to apply a zero rate and a rate of less than 5%, and not just those who historically applied such VAT rating.
Ireland operates a standard VAT rate of 23%, reduced VAT rates of 13.5% and 9%, and historically applies the zero rate and a super-reduced rate of 4.8%. All of these rates can be maintained under the new proposal.
As mentioned earlier, Member States will not be permitted to apply a reduced VAT rate to all goods and services under the proposal system. The proposal sets out a list of goods and services that must continue to be applied at the Member State’s standard VAT rate, in order to avoid distortion of competition. This list includes alcohol, weapons and tobacco, which must always be charged at the standard VAT rate. These goods are already charged to the standard VAT rate in Ireland. Within these parameters, Member States would be free to set the level of VAT rating so long as the average VAT rate applied across the board is no less than 12%. The current average VAT rate for all Member States exceeds this level.
The proposal will be discussed at European Council and must be agreed unanimously by all Member States before being adopted. It is expected that discussions on the proposal will be robust and it is likely that the final agreed text will be the subject of many compromised amendments.
151. Deputy Róisín Shortall asked the Minister for Finance the regulations regarding the securitisation of home loans; the statutory underpinning of these regulations; the obligation that is required on the part of the lender to inform the borrower of the existence of this securitisation; the extent of this practice in respect of existing mortgages; and if he will make a statement on the matter. [5919/18]
Amharc ar fhreagraI am advised by the Central Bank that securitisation activity, including that of ‘home loans’, is currently subject to a variety of regulatory requirements in various pieces of EU sectoral legislation. The main securitisation-specific requirements generally relate to the prudential treatment of investments in securitisation by certain financial firms and investor transparency requirements that apply to issuers of securitisation. They are contained in the below pieces of legislation, albeit securitisation activity may also be subject to general overarching/crosscutting financial regulatory requirements:
- EU Capital Requirements Regulations (575/2015) (‘CRR’) governs the prudential capital treatment of a credit institution or investment firms’ (‘institutions’) investment in a securitisation, the conditions that allow an institution to achieve capital relief on underlying loans it securitises, due diligence requirements for institutions that invest in securitisation and risk retention requirements that have to be fulfilled by the originator of the transaction in order for an institution to be allowed to invest in it;
- Similar to the CRR, the EU Solvency II Directive (2009/138/EC recast) regulates the prudential capital treatment of investments in securitisations by insurance firms, while delegated regulation (2015/35) also contains provisions in relation to risk retention.
- Risk retention requirements may also apply to certain collective investment undertakings and alternative funds managers as per the UCITs Directive (2009/65/EC) and AIFMD (2011/61/EU) respectively.
- Various investor transparency requirements are set out in the Credit Rating Agency Regulation (1060/2009), notably in relation to the provision of loan-level data to investors, and the Prospectus Directive (2010/73) which governs the information provided by way of a prospectus for publically listed securitisations.
Under Capital Markets Union, securitisation is seen as an important channel for diversifying funding sources for the real economy. Two new European regulations (2017/2402 and 2017/2401) will come into effect in January of next year which will help define simple, transparent and standardised securitisation products with the aim of re-establishing a safe securitisation market in Europe. These European regulations will compile most of the above sectoral requirements for securitisation into one EU legal act, as well as modifying the prudential treatment of securitisation for credit institutions and investment firms.
In terms of consumer protection, the Central Bank’s Codes apply to all mortgages provided to a consumer borrower.
If a loan is sold to an unregulated entity, the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 will apply. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections they had prior to the sale
152. Deputy Alan Kelly asked the Minister for Finance the sterling to euro exchange rate applicable to the declaration of foreign salary received by a person on 23 October 2017 for the purposes of completing the Revenue Commissioners' form 12 process online; and if he will make a statement on the matter. [5920/18]
Amharc ar fhreagraI am informed that Revenue publishes the Annual Average Euro Reference Exchange Rates, as supplied by the Central Bank, annually by way of an eBrief. The annual average sterling to euro exchange rate for 2017 was GBP £1 = €1.14068. Where income is received on a particular date, the taxpayer may choose to use the daily exchange rate for that date, as supplied by the Central Bank. The sterling to euro exchange rate for 23 October 2017 was GBP £1 = €1.12246. I am advised that the 2017 average exchange rates will be published shortly by Revenue.
153. Deputy Alan Kelly asked the Minister for Finance if fully vouched employment expenses payable on production of receipts amounting to £336.59 (details supplied) to an Irish citizen domiciled here by a UK organisation which is regarded as tax free in the UK are similarly tax free here for the purposes of the completion of their form 12 online; and if he will make a statement on the matter. [5921/18]
Amharc ar fhreagraI am informed by Revenue that, in accordance with section 114 Taxes Consolidation Act 1997, where an employee:
- is necessarily obliged to incur expenses of travelling (and subsistence relating to that travel) in the performance of the duties of his or her employment; and
- is reimbursed by his or her employer in respect of such travel and subsistence on the basis of vouched receipts,
such reimbursement may be made free of tax.
Having regard to your specific query, provided the requirements of section 114 (as outlined above) are satisfied, the payment may be made tax free. In such circumstances, the employee would not include such reimbursements as income or an expense when filing an income tax return for that year.
154. Deputy Tony McLoughlin asked the Minister for Finance his plans to make provisions in legislation to ensure that persons suffering from a wide range of illnesses here but that do not qualify for a long-term illness book can, when paying for medical equipment such as oxygen, be entitled to receive relief from VAT; and if he will make a statement on the matter. [5931/18]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. The supply of oxygen is liable to VAT at the standard rate, currently 23%, and as such I am constrained by the requirements of EU law from applying any rate of VAT lower than the standard rate to the sale of this product.
However, the EU VAT Directive provides for particular categories of goods and services where a Member State may apply a lower rate or exempt from VAT. Under Irish legislation, the supply of a range of medical equipment and appliances, which include invalid carriages (excluding mechanically propelled road vehicles), orthopedic appliances, deaf aids, walking frames and crutches, fall within one of these categories and are subject to the zero rate of VAT.
In addition, the Value-Added Tax (Refund of Tax) (No. 15) Order, 1981, provides in certain circumstances for the refund of VAT on goods which are aids or appliances and includes goods specially constructed or adapted for use that are purchased for the exclusive use of a person with a disability of a type specified for the purposes of the Order. An oxygen concentrator may qualify for a refund under the Order if the applicant satisfies the relevant criteria relating to disability; oxygen is not covered by the Order and there is no scope under the Directive to amend the Order to include oxygen.
155. Deputy Pearse Doherty asked the Minister for Finance the number of applications that have been revived for banking licences in each of the past five years; the number of licences granted; and if he will make a statement on the matter. [5995/18]
Amharc ar fhreagraThe Central Bank of Ireland utilises a three-stage banking authorisation assessment process, the first two stages being part of a pre-application assessment, followed by submission of a formal application. It should be noted that it is the European Central Bank which determines whether a banking authorisation should be granted under section 9 of the Central Bank Act, 1971 (general banking authorisations). The Central Bank of Ireland is the competent authority for Third Country Branches (a credit institution whose head office is located in a state or territory other than an EEA state and which holds an authorisation to carry on banking business in that state or territory from the authority that exercises in that state or territory functions corresponding to those of the Central Bank). The data contained below refers only to applications which progressed to the formal application stage, and licences granted.
I am informed by the Central Bank that the number of applications for a banking licence received and granted in the past five years is as follows:
|
Year |
Number of Applications Received |
Number of Licences Granted |
|
2013 |
None |
One[1] |
|
2014 |
None |
None |
|
2015 |
One |
One |
|
2016 |
None |
None |
|
2017 |
None |
None |
[1] The application was received in October 2012.
The above table does not reflect ongoing assessments in relation to material expansions of activities proposed by existing banking licence holders.
Given the likely effects of Brexit, the Central Bank is currently in discussions with a number of entities that may seek an authorisation in this jurisdiction.
156. Deputy Caoimhghín Ó Caoláin asked the Minister for Public Expenditure and Reform the annual return to the Exchequer from the national lottery in each of the years 2008 to 2017; the payout to charities and other beneficiary organisations and entities by the national lottery for each of the years; the arrangements in place with the national lottery operators; the timeframe of their tenure; and if he will make a statement on the matter. [5370/18]
Amharc ar fhreagraThe National Lottery was established under the National Lottery Act 1986 and continues in accordance with the National Lottery Act 2013.
A competition for the award of the twenty year licence to operate the National Lottery took place between May and October 2013. On 27 February 2014 the Minister for Public Expenditure and Reform granted the new licence to Premier Lotteries Ireland (PLI) Limited who then entered into a transition phase with the previous operator, An Post National Lottery Company. Premier Lotteries Ireland Ltd was incorporated on 22 May 2013 and began operations as Operator of the National Lottery on 30 November 2014. A fee of €405m was received into the Exchequer for the National Lottery licence in 2014.
In addition, the following amounts have been transferred to the Exchequer from the National Lottery in each of the years 2008 to 2017;
2008 €265m
2009 €275m
2010 €250m
2011 €230m
2012 €220m
2013 €210m
2014 €178m
2015 €193m
2016 €219m
2017 €227m
In accordance with the National Lottery Act 2013 and under the terms of the National Lottery Licence, 65 per cent of the gross gaming revenue, that is total sales less the prizes awarded, is provided to fund "Good Causes". The remainder is returned to the lottery operator, out of which all costs of operating the national lottery must be met.
The sectoral areas funded under the Good Causes provision of the Act are:
- sport and recreation;
- national culture and heritage (including the Irish language);
- the arts (within the meaning of the Arts Act 2003);
- health of the community;
- youth, welfare and amenities; and
- the natural environment.
The Act also provides that the proceeds may be applied to such other purposes, if any, as the Government may determine from time to time.
A breakdown by Department of all the expenditure areas that are supported through National Lottery proceeds is set out in Appendix 1 of the Annual Revised Estimates for Public Services. Further details (e.g. specific projects or organisations) can be acquired from the relevant Government Departments.
157. Deputy Darragh O'Brien asked the Minister for Public Expenditure and Reform the status of the reopening of Rush Garda station; and if he will make a statement on the matter. [5981/18]
Amharc ar fhreagraThe former Garda station at Rush Co. Dublin is in the full ownership of the Commissioners of Public Works in Ireland. The station was closed on 29th April 2012 as part of the rationalisation programme of An Garda Síochána, as announced in the 2012 Policing Plan.
The Commissioners of Public Works licensed the former Garda Station at Rush to Rush Musical Society and Rush Community Council for a period of five years, commencing on 9th February 2015. Under the terms of the licence, the Commissioners reserve the right to terminate the Licence at any time by giving one month’s written notice to the Licensees.
The Office of Public Works is currently engaging with An Garda Síochána in relation to their final brief of requirements, which will facilitate a full assessment of the extent of works required, the cost and the timeframe for reopening.
158. Deputy Fiona O'Loughlin asked the Minister for Public Expenditure and Reform the position regarding the provision of pension entitlements to employees such as community employment personnel who have their entire salary provided by the State; and if he will make a statement on the matter. [5320/18]
Amharc ar fhreagraAn issue which has been under discussion by the Community Sector High Level Forum relates to community employment supervisors and assistant supervisors who have been seeking, through their union representatives, the allocation of Exchequer funding to implement a Labour Court recommendation relating to the provision of a pension scheme.
At the April meeting of the Forum, my Department outlined its intention to conduct a detailed scoping exercise in order to comprehensively examine and assess the full potential implications of the issues under consideration. In considering the particular matter referred to, regard must be had to the costs and precedent of such an arrangement were one to be created.
It continues to be the position that state organisations are not the employer of the particular employees concerned and that it is not possible for the State to provide funding for such a scheme. The employees in question are, or were, employees of private companies notwithstanding the fact that the companies concerned are, or were, reliant on State funding.
A meeting of the Forum took place on Thursday, 23 November 2017 where the findings of the scoping exercise were shared with members of the Forum. A follow up meeting to deal with technical questions arising from the exercise took place on Friday, 15 December 2017.
159. Deputy Michael Fitzmaurice asked the Minister for Public Expenditure and Reform the Departments that had an underspend for 2015, 2016 and 2017; the amount of the underspend; and if he will make a statement on the matter. [5381/18]
Amharc ar fhreagraManaging the delivery of public services within budgetary allocations is a key responsibility of each Minister and their Departments, and there are important measures in place to ensure that budgetary targets are met. However, given the scale of gross voted Government expenditure c. €58.5 billion in aggregate in 2017 - and the cash basis of Government accounting, some variance from profiled expenditure is to be expected. The tables below set out the level of underspends, on a gross basis, across the relevant Ministerial Vote Groups for the years 2015, 2016 and 2017. Some totals are affected by rounding. These underspends are compared to allocations in the relevant Revised Estimates Volume (REV) and, therefore, do not reflect any Supplementary Estimates. With regard to the treatment of capital carryover, the capital carryover into the following year is included in the expenditure outturns for each year.
In summary, 8 Ministerial Vote Groups reported underspends in 2015, 10 Vote Groups in 2016 and 11 Vote Groups in 2017. Underspends can occur for a number of reasons. For example, this may include changes in policy decisions or lower than expected take-up of a particular programme or service.
Where spending in a number of Departments comes in under profile, these savings can be used to offset additional expenditure in Departments that require Supplementary Estimates and thereby assist with meeting overall budgetary targets.
|
2015 |
REV allocation (€m) |
Outturn (€m) |
Variance (€m) |
Variance (%) |
|
Arts, Heritage and the Gaeltacht |
277 |
277 |
-1 |
-0.2% |
|
Communications, Energy and Natural Resources |
415 |
401 |
-14 |
-3.4% |
|
Defence |
898 |
898 |
0 |
0% |
|
Environment, Community and Local Government |
1,329 |
1,284 |
-45 |
-3.4% |
|
Finance |
451 |
443 |
-8 |
-1.9% |
|
Foreign Affairs and Trade |
687 |
684 |
-2 |
-0.3% |
|
Public Expenditure and Reform |
1,017 |
1,012 |
-5 |
-0.5% |
|
Taoiseach |
170 |
159 |
-11 |
-6.3% |
|
2016 |
REV allocation (€m) |
Outturn (€m) |
Variance (€m) |
Variance (%) |
|
Agriculture, Food and the Marine |
1,351 |
1,267 |
-84 |
-6.2% |
|
Arts, Heritage, Regional, Rural and Gaeltacht Affairs |
383 |
376 |
-7 |
-1.9% |
|
Children and Youth Affairs |
1,138 |
1,086 |
-52 |
-4.6% |
|
Communications, Climate Action and Environment |
466 |
437 |
-30 |
-6.4% |
|
Defence |
905 |
905 |
0 |
0% |
|
Finance |
455 |
443 |
-13 |
-2.8% |
|
Housing, Planning, Community and Local Government |
1,384 |
1,370 |
-14 |
-1.0% |
|
Health |
14,109 |
14,107 |
-2 |
0% |
|
Justice and Equality |
2,458 |
2,449 |
-10 |
-0.4% |
|
Public Expenditure and Reform |
1,051 |
1,004 |
-46 |
-4.4% |
|
Taoiseach |
204 |
188 |
-17 |
-8.3% |
|
2017 |
REV allocation (€m) |
Outturn (€m) |
Variance (€m) |
Variance (%) |
|
Agriculture, Food and the Marine |
1,468 |
1,391 |
-78 |
-5.3% |
|
Culture, Heritage and the Gaeltacht |
288 |
287 |
-1 |
-0.4% |
|
Children and Youth Affairs |
1,311 |
1,249 |
-62 |
-4.7% |
|
Communications, Climate Action and Environment |
528 |
498 |
-31 |
-5.8% |
|
Finance |
465 |
457 |
-7 |
-1.6% |
|
Foreign Affairs and Trade |
715 |
711 |
-4 |
-0.6% |
|
Business, Enterprise and Innovation |
857 |
852 |
-5 |
-0.5% |
|
Public Expenditure and Reform |
1,094 |
1,068 |
-26 |
-2.4% |
|
Taoiseach |
182 |
167 |
-15 |
-8.3% |
|
Transport, Tourism and Sport |
1,810 |
1,802 |
-8 |
-0.4% |
|
Rural and Community Development |
163 |
144 |
-19 |
-11.6% |
160. Deputy Timmy Dooley asked the Minister for Public Expenditure and Reform when information requested from PeoplePoint relating to a person's (details supplied) contribution record will be provided to the contributory pension section of the Department of Employment Affairs and Social Protection to finalise an application; and if he will make a statement on the matter. [5393/18]
Amharc ar fhreagraI have been informed by the National Shared Services Office, the Office responsible for PeoplePoint, that records confirm the request for the contribution record of the person in question was received on 23 January 2018 from the Social Welfare Services Office.
This request was for a confirmation of the contribution history of the named person for the time this person was employed in the Department of Posts and Telegraphs (P&T).
As this Department no longer exists, the records have been requested and once received, will be processed in a timely manner.
