Written Answers Nos 53-63
53. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the recent report by the Northern Ireland affairs committee of the British House of Commons regarding the difficulties in retaining a frictionless border on this island following Brexit; and if he will make a statement on the matter. [13517/18]
Amharc ar fhreagraI have noted the report, referenced by the Deputy, which was published by the House of Commons Northern Ireland Affairs Committee on Friday 16 March. While there are elements of the report with which I do not agree, it nonetheless raises a number of important points. The report highlights the challenges posed for the border if the UK leaves the Single Market and Customs Union. It also calls on the UK Government to bring forward proposals on how to maintain an invisible border, and seeks clarity on a number of other important areas.
The Government has always been clear that technology is not the solution to the border issues. The report from the NIAC recognises that this is the case. The border poses complexes challenges, including for the standards and regulations that currently make it possible for it to be invisible. Technology can only go so far and does not address all of the complexities. The border issues need to be considered holistically, which is why the Government has taken the position that it has.
There has been progress made this week between the two negotiating teams on parts of the Withdrawal Agreement, including on the Protocol on Ireland and Northern Ireland. The UK has agreed that a legally operative version of the ‘backstop’ for the border will be included in the Withdrawal Agreement, in line with paragraph 49 of the Joint Report published last December. There is also agreement that this is to apply unless and until another solution is found.
The UK has also agreed that all the issues identified in the EU draft of the Protocol will be addressed to deliver a legally sound solution to the border. In this regard, the EU and the UK have agreed on an intensive schedule of meetings starting next week. Ireland will continue to work closely with Michel Barnier and his team and EU partners in line with our objective of achieving an orderly withdrawal by the UK, which protects fully Ireland’s essential interests.
54. Deputy Pearse Doherty asked the Minister for Finance the full agenda and issues raised at his meeting with a bank (details supplied) on 26 February 2018; if the issue of the bank's proposed sale of property was discussed; and if he will make a statement on the matter. [13332/18]
Amharc ar fhreagraThe agenda for the meeting referred to by the Deputy comprised 1) NPL strategy and disposal plans, 2) tracker update, and 3) general performance update. I presume when the Deputy refers to the bank's proposed sale of property he is referring to the sale of NPLs and I can confirm that this matter was discussed as per the agenda.
55. Deputy Brendan Howlin asked the Minister for Finance the gross and net debt-to-GDP and GNI ratios following the publication of the 2017 national accounts by the CSO on 8 March 2018; and if he will make a statement on the matter. [13405/18]
Amharc ar fhreagraOn 8 March 2018, the Central Statistics Office (CSO) published the Quarterly National Accounts for the fourth quarter of 2017, which included a preliminary GDP estimate for 2017.
The CSO will update modified GNI (GNI*) with the annual National Income and Expenditure publication in June/July.
The nominal gross and net general government debt forecasts are unchanged since the publication of the Economic and Fiscal Outlook as part of Budget 2018. Updated forecasts will be presented in the Stability Programme Update 2018, to be published in draft form in mid-April.
The information below sets out the results when the CSO's latest nominal GDP is used as the denominator. For convenience the Budget 2018 figures are also presented.
|
2017 |
With forecast GDP as at Budget 2018 |
With GDP as per Q4 2017 National Accounts |
|
General government gross debt (per cent GDP) |
70.1 |
68.4 |
|
General government net debt (per cent GDP) |
61.2 |
59.8 |
56. Deputy Thomas P. Broughan asked the Minister for Finance if the national economic dialogue will take place in 2018; if a date has been decided; and if he will make a statement on the matter. [13462/18]
Amharc ar fhreagraAs part of the budgetary process over the last three years, a National Economic Dialogue was held, jointly hosted by the Departments of Finance, and Public Expenditure and Reform. A Government decision on whether to hold a National Economic Dialogue this year has not yet been taken but will be considered as part of the on-going budgetary process for 2018.
57. Deputy Thomas P. Broughan asked the Minister for Finance the position regarding the revision of Directive 2008/118/EC on the rules for cross-border movements of excisable goods such as alcohol or tobacco in particular regarding Article 32 of the directive; and if he will make a statement on the matter. [13464/18]
Amharc ar fhreagraI am advised that the European Commission is currently developing proposals for a revision of Directive 2008/118/EC on the general arrangements for excise duty in the EU. The Commission is expected to publish these proposals during 2018. Ireland will participate fully in the legislative process once the proposals have been presented.
58. Deputy Mary Butler asked the Minister for Finance his plans to amend the criteria in respect of benefits payable on retirement from approved minimum retirement funds, AMRFs, in particular, the imposition of tax in respect of one withdrawal per year of up to a maximum of 4% of the value of the AMRF and the rule prohibiting cashing in the fund until the person reaches 75 years of age; the reason household income is not included for the purposes of calculating minimum income of €12,700 if converting an AMRF to an ARF; and if he will make a statement on the matter. [13484/18]
Amharc ar fhreagraI am advised by Revenue that, on retirement, an individual in a defined contribution pension savings arrangement has the option, after taking any lump sum, of either using the funds remaining to purchase an annuity or transferring those funds into an Approved Retirement Fund (ARF).
Where such an individual is under the age of 75 at the time of exercising the option and does not have a minimum guaranteed income of €12,700 per annum, she or he is required to set aside an amount of €63,500 (or the entire fund if less than €63,500) in an Approved Minimum Retirement Fund (AMRF) or use that amount to purchase an annuity. The minimum income requirement is to ensure the individual has an adequate and secure source of guaranteed retirement income for her or his remaining years. As general household income would not meet these criteria it is not included in the minimum income calculation.
An AMRF owner can draw down up to 4% of the value of the fund assets on one occasion annually, subject to income tax at the owner’s marginal rate, until she or he either meets the guaranteed pension income requirement or attains the age of 75 years, at which point the AMRF automatically becomes an ARF and any remaining funds can be drawn down at the owner’s discretion. The payments into the pension would have attracted tax relief so withdrawals from the fund, including any annual drawdown, are subject to tax.
I do not currently have any plans to remove the requirements which apply before a person can have increased access to the funds in an AMRF or transfer them to an ARF. However, these provisions, along with other taxation measures, are kept under review. The Deputy may be aware that the Government has recently published A Roadmap for Pensions Reform 2018 – 2023, which contains in Strand 3, “Improving Governance and Regulation”, a plan for a broad review of the utilisation and regulation of ARF products.
59. Deputy Brendan Smith asked the Minister for Finance the additional measures he plans to implement to counteract cross-Border illegal trading in goods such as fuels and tobacco; and if he will make a statement on the matter. [13500/18]
Amharc ar fhreagra60. Deputy Brendan Smith asked the Minister for Finance the outcome of recent discussions between his Department, the Revenue Commissioners and their counterparts in Northern Ireland regarding illegal trading in goods such as fuels and tobacco; and if he will make a statement on the matter. [13501/18]
Amharc ar fhreagraI propose to take Questions Nos. 59 and 60 together.
The threat that fuel fraud and the illicit tobacco trade pose to legitimate business, to consumers and the Exchequer is recognised and I am advised by Revenue that tackling such criminal activity has been one of their priorities over recent years.
Revenue’s strategy for combatting the illegal fuel trade has included the introduction of stringent supply chain controls and reporting requirements for fuel transactions to minimise the scope for fraud. It also included a programme of enforcement action, underpinned by legislative changes including a “reckless trading” provision under excise law for oil traders, that have been introduced over a number of Finance Acts, to strengthen Revenue’s powers for dealing with this kind of fraud. In addition, Revenue and HM Revenue and Customs in the United Kingdom undertook a joint initiative to introduce from the beginning of April 2015, in Ireland and the United Kingdom, a new fiscal marker for use in marked fuels.
I understand that the industry view is that the measures implemented to date have been successful in significantly curtailing fuel fraud in Ireland. This view is supported by a significant increase in tax revenues from road diesel in recent years. I am also advised that Revenue conducted National Random Sampling Programmes in 2016, 2017 and 2018 with a view to obtaining an updated picture of the extent of the fuel laundering problem. The programmes involved selecting a random sample comprising nearly one in every ten of the 2,500 holders of Auto Fuel Trader Licences (any trader that produces, sells, deals in, or keeps for sale or delivery road diesel is legally obliged to hold such a licence). Road diesel samples were taken from all traders in the programme and tested for the presence of the marker introduced in 2015. In all three years, no evidence of this marker was found in any of the samples tested. This constitutes persuasive evidence that the strategy undertaken in recent years has resulted in the near elimination of selling of laundered product at retail level. The available evidence to date indicates that Accutrace cannot be laundered by conventional methods.
I am advised by Revenue that while the effectiveness of the measures introduced over the last few years is very welcome as is the very positive outcome of the collaboration with HMRC, Revenue is not complacent and is mindful of the resourcefulness of those involved in criminality in the fuel trade. Revenue remains vigilant and ready to respond to any new developments in this area.
Action is taken against all aspects of the illegal tobacco trade and includes a range of measures to identify and target persons engaged in the supply or sale of illicit products, with a view to seizing the illicit products and prosecuting those involved. Revenue’s multifaceted strategy encompasses ongoing analysis of the nature and extent of the problem, the use of analytics and detection technologies, optimising the deployment of resources and extensive cooperation (including the development and sharing of intelligence) on a national, EU and international basis.
A combination of risk analysis, profiling and intelligence and the risk based screening of cargo, vehicles, baggage and postal packages contribute to the effectiveness of Revenue’s goal of intercepting the supply of illicit tobacco products. Revenue also targets the illicit trade in tobacco at post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Action has also been taken through Finance Acts over recent years to ensure that Revenue has the statutory powers necessary for undertaking its important work against the illegal tobacco trade.
I would like to take this opportunity to congratulate Revenue, who in a joint operation with An Garda Síochána, as part of the Joint Agency Task Force, last week closed down an illicit commercial cigarette factory in Jenkinstown, Co. Louth. I understand from Revenue that this was the first time a commercial illicit cigarette production plant was discovered in the State and the factory was in full operation when Revenue officers and the Armed Support Unit of An Garda Síochána entered the premises. Revenue officers found more than 60 tonnes of tobacco, all the pre-cursor components for the manufacture of cigarettes, and approximately 25 million cigarettes ready for distribution. This was a sophisticated self-contained operation with machinery capable of producing 250,000 illicit cigarettes per hour and pre-processing, processing and packaging facilities, along with living quarters.
In assessing the overall effectiveness in tackling the illegal tobacco trade, a reliable measure is provided by the annual surveys of illegal tobacco products carried out by IPSOS/MRBI for Revenue and the National Tobacco Control Office of the Health Services Executive. The survey in 2017 found that 13% of cigarette packs encountered in the course of the project were illicit. This figure is slightly up from the levels of 12% and 10% reported in 2015 and 2016 respectively but is nevertheless lower than in earlier years.
Revenue works closely with an An Garda Síochána in acting against fuel and tobacco fraud, and the relevant authorities in the State also work closely with their counterparts in Northern Ireland, through cross-border enforcement groups, to target the organised crime groups responsible for a large proportion of this criminal activity. This work is being supported and facilitated by the setting up in 2016, in the framework of “A Fresh Start: the Stormont Agreement and Implementation Plan”, of a Joint Agency Task Force, which includes Revenue as well as An Garda Síochána and their Northern Ireland counterparts. Revenue also works in close cooperation with the relevant authorities in other jurisdictions, the European Anti-Fraud Office and other international bodies and agencies in the ongoing programmes of action at international level to combat both the illicit fuel and tobacco trades.
I am satisfied that Revenue’s work against fuel fraud and the illicit tobacco trade has achieved a considerable level of success, and I am assured that action in these areas will continue to be a high priority. In addition, I can say to the Deputy that I will give careful consideration to any further proposals for legislative change that may be brought forward by Revenue to enhance their capacity to deal effectively with fraud and criminality in these areas.
61. Deputy Jan O'Sullivan asked the Minister for Finance if he will report on the statement undertaken by his Department regarding the financing and output of new housing by a company (details supplied); the conclusions his Department has drawn from the study; and if he will make a statement on the matter. [13520/18]
Amharc ar fhreagraOn 29 November 2017 I met with representatives of Cairn Homes to discuss the Irish housing market and to get their perspective on issues affecting the market as residential builders of significant scale. Officials from my Department prepared briefing material in advance of that meeting. The purpose of the briefing was to provide meeting attendees - including myself - with an update on the current activity of Cairn Homes.
The information contained in the briefing regarding Cairn Home’s housing output and financing was based on publically available information. No further study or analysis of the activity of Cairn Homes has been made by my Department.
62. Deputy Paul Kehoe asked the Minister for Public Expenditure and Reform the status of land acquisition for a Coast Guard station (details supplied); the planned timeframe for completion of the new building; and if he will make a statement on the matter. [13308/18]
Amharc ar fhreagraThe Commissioners of Public Works have undertaken a feasibility study on a site owned by Wexford County Council and this has been approved by the Irish Coast Guard Service. The acquisition of the site by the Commissioners is currently being processed by Wexford County Council.
A timeframe for the completion of a building cannot be determined at this time.
63. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the progress his Department has made on the report on pay equalisation as specified in the Public Service Pay and Pensions Act 2017; the scope of the report; the timeframe involved; and if he will make a statement on the matter. [11316/18]
Amharc ar fhreagraI refer the Deputy to my answer to PQ Ref: 11836/18 on 20 March 2018.
