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Tuesday, 8 May 2018

Written Answers Nos. 121-135

Consultancy Contracts Expenditure

Ceisteanna (121)

Mick Wallace

Ceist:

121. Deputy Mick Wallace asked the Minister for Finance if his Department or a State agency under his remit has availed of the services of companies (details supplied) since 2011; if so, the details of the expenditure; and if he will make a statement on the matter. [19822/18]

Amharc ar fhreagra

Freagraí scríofa

No invoices were received by my Department, however please see the following response from state agencies under my remit relating to Diskshred Ltd. or Asset Management Ireland in the years 2011 to 2018.

Of the seventeen bodies under the aegis of my Department, I am informed that fifteen have not availed of the services of the companies, Diskshred Ltd or Asset Management Ireland since 2011. The Irish Bank Resolution Corporation and The Office of the Revenue Commissioners availed of the services of Diskshred Ltd/Asset Management Ireland. The details are set out in the following table:

-

Availed of   the services of companies (Diskshred Ltd or Asset Management Ireland) since 2011

Details of   the expenditure

Irish Bank Resolution Corporation

Yes

In the period 2011-2012, payments totalling €8,968.17 were made to   Asset Management (Ireland) Limited/Diskshred Limited.

 

2011 €4,766.87

2012 €4,201.30

 

No payments have been made since the date of liquidation to Asset   Management (Ireland) Limited/Diskshred Limited.

Office of the Revenue Commissioners

Yes

For data removal and disposal services

2011 €491.87

2012 €841.33

2013 NIL

2014 €329.62

2015 NIL

2016 NIL

2017 NIL

State Claims Agency Data

Ceisteanna (122)

Niall Collins

Ceist:

122. Deputy Niall Collins asked the Minister for Finance the number of claims pending against the State Claims Agency at present by claim type, category and county in which the claimant is based; and if he will make a statement on the matter. [19902/18]

Amharc ar fhreagra

Freagraí scríofa

In response to the Deputy's question the State Claims Agency (SCA) have supplied the following table regarding active claims, broken down by Incident/Hazard Category recorded on the National Incident Management System (NIMS) as of 4 May 2018. The SCA advise that they do not record the county in which a claimant is located in a reportable manner on the NIMS. The table and the report excludes Property Damage Recovery Claims.

Table: Active claims recorded on NIMS as of 4 May 2018

Incident/Hazard Category  

Number of Active Claims  

Clinical Care

3,163

Crash/Collision

487

Exposure to Behavioural Hazards

1,393

Exposure to Biological Hazards

257

Exposure to Chemical Hazards

275

Exposure to Physical Hazards

2,147

Exposure to Psychological hazards

2,514

Property Damage/Loss (non crash/collision)

202

Unknown (Awaiting Claim Investigation)  

9

Grand Total

10,447

 For the benefit of the Deputy's understanding the SCA has advised the following definitions in relation to the table.

National Incident Management System (NIMS): Incidents (which include claims) are reported using the “National Incident  Management System”. This is hosted by the State Claims Agency (SCA) for the HSE, other Healthcare enterprises and Delegated State Authorities. An incident can be a harmful Incident (Adverse Event), no harm incident, near miss, dangerous occurrence (reportable circumstance) or complaint. An Incident can relate to a person, property, crash/collision, dangerous occurrence or complaint.

Claim: A claim refers to notification of intention to seek compensation for personal injury and/or property damage where it is alleged the State was negligent. The application may be in the form of a letter of claim, an InjuriesBoard.ie application, or a written/oral request.

Incident/hazard category: The adapted World Health Organisation (WHO) taxonomy of incident types. This field breaks down an incident into pre-defined categories, e.g. Clinical Care, Exposure to Physical Hazards, Crashes/Collisions, etc.

Examples of Incident/Hazard Categories:

‘Clinical Care’ would include Birth Specific Procedures, Clinical Procedures.

‘Exposure to Behavioural Hazards’ would include Violence, Harassment and Aggression, Self Injurious Behaviour.

‘Exposure to Biological Hazards’ would include Bacteria, Virus.

‘Exposure to Chemical Hazards’ would include Sanitation/Cleaning Chemicals.

‘Exposure to Physical Hazards’ would include Slips, Trips, Falls,

‘Exposure to Psychological hazards’ would include Wrongful Exposure, Wrongful Death.

‘Property Damage/Loss (non crash/collision)’ would include Personal Belongings, Vehicle.

Tax Code

Ceisteanna (123)

Tom Neville

Ceist:

123. Deputy Tom Neville asked the Minister for Finance the reason an incorrect tax certificate was issued to a person (details supplied). [19927/18]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the tax position of the person in question has been examined and is correct.

Revenue has also confirmed that it has already been in direct contact with the person in regard to the issue, which seems to relate to payroll processing by their employer.

Tax Code

Ceisteanna (124)

Eugene Murphy

Ceist:

124. Deputy Eugene Murphy asked the Minister for Finance the reason a person (details supplied) who is newly employed by the Education and Training Board, ETB, is deemed exempt from the universal social charge, USC, in the last quarter of the person's first year in employment in view of the fact the Revenue Commissioners is seeking to recoup the USC from the person in the following year causing financial hardship; and if he will make a statement on the matter. [20032/18]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the person had an underpayment of Universal Social Charge for 2016. The underpayment arose because Revenue was not informed of the change in his employment circumstances. This resulted in his tax credits for the year being applied at previous years' rates which were below the USC threshold.

Revenue originally advised the person that the shortfall would be collected by reducing his tax credits over the course of 2018. This would have resulted in a reduction of just under €16 per week in his take home pay. Following discussions with the individual, Revenue agreed to collect the liability by reducing his tax credits over the years 2018 to 2021 (inclusive). The impact on his take home pay is a reduction of just under €4 per week.

Stamp Duty

Ceisteanna (125)

Michael McGrath

Ceist:

125. Deputy Michael McGrath asked the Minister for Finance if he has signed the commencement order for farm consolidation relief of stamp duty as provisioned in section 68 of the Finance Act 2017; if not, when he will to do so; and if he will make a statement on the matter. [20067/18]

Amharc ar fhreagra

Freagraí scríofa

As I have outlined in a number of PQ replies recently, the measure legislated for in section 68 of Finance Act 2017 will allow a farmer to claim relief from stamp duty where he or she sells and purchases land for the purposes of consolidating an existing farm holding has been introduced, subject to a commencement order after a full consideration of any administrative or EU state-aid requirements.

For the relief to operate, there must be both a sale and a purchase of land within a period of 24 months of each other. Where other qualifying conditions are satisfied, stamp duty will only be paid to the extent that the value of the land that is purchased exceeds the value of the land that is sold. A reduced rate of 1% will be charged on the excess, if any, of the purchase value. If the sale takes place before the purchase, then relief will be given at the time of purchase. However, if the purchase takes place first, then stamp duty will have to be paid but can subsequently be refunded when the sale takes place.

A number of qualifying conditions must be satisfied before the relief can apply. The most important condition is that Teagasc must issue a certificate stating that a sale and purchase or an exchange of farmland was made for farm consolidation purposes. This is the certificate that is currently required in relation to the capital gains tax relief. The criteria to be used by Teagasc for this purpose and the information to be supplied to Teagasc are contained in guidelines published by the Minister for Agriculture, Food and the Marine:

(https://www.agriculture.gov.ie/media/migration/formsdownloads/V12CGTGuidelinesfinal060315.pdf).

A purchaser of farmland must retain ownership of the farmland for a period of five years and must use the land for farming. Where any part of the land is disposed of before the end of this five-year holding period, the stamp duty relieved can subsequently be recovered by Revenue, or partly recovered as appropriate.

The measure will apply to all transactions which took place after 1 January 2018, so farmers who consolidate their holdings prior to the commencement of the relief will still be eligible.

I understand that the Department of Agriculture, Food and the Marine has recently made an application to the European Commission for State Aid approval of the measure and that their response is awaited. Therefore, at this point, no definitive date for the commencement of the relief can be provided. I would again wish to emphasise that, subject to state-aid approval and commencement, any eligible consolidation that takes place on or after 1 January 2018 and on or before 31 December 2020 will benefit from the consolidation measure introduced in section 68 of Finance Act 2017 (No 41 of 2017).

Foreign Earnings Deduction

Ceisteanna (126)

Billy Kelleher

Ceist:

126. Deputy Billy Kelleher asked the Minister for Finance the estimated cost to the Exchequer of a proposal (details supplied) over a full calendar year. [20093/18]

Amharc ar fhreagra

Freagraí scríofa

The Foreign Earnings Deduction applies to taxpayers who work abroad during a tax year and one of the conditions of receiving the deduction is that the taxpayer must work in a relevant state, of which there are 30 eligible states. All of these 30 relevant states are non EEA states.

I am advised by Revenue that given the number of variable factors involved, for example, the extra uptake as a result of the broadening of the incentive; the number of qualifying days that might be worked abroad; and the salary level of the additional taxpayers that may take up this deduction, it is not possible to estimate the additional cost to the Exchequer of the Deputy's proposal with any degree of reliability.

Tax Reliefs Costs

Ceisteanna (127)

Billy Kelleher

Ceist:

127. Deputy Billy Kelleher asked the Minister for Finance the estimated cost to the Exchequer of a proposal (details supplied) over a full calendar year. [20094/18]

Amharc ar fhreagra

Freagraí scríofa

The Special Assignee Relief Programme (SARP) is available to employees of companies that are incorporated and tax resident in a country with which Ireland has a double taxation agreement or a Tax Information Exchange Agreement. SMEs are not currently excluded from availing of SARP, as long as they meet this condition.

I am advised by Revenue that it is not possible to provide an estimated cost for extending SARP as outlined as the likely additional uptake of the scheme in such circumstances is not known nor are the rates of pay of the employees who might avail of the extended scheme.

With regard to new hires, under existing legislation the employee must have worked for that employer for a minimum of 6 months outside of Ireland immediately before being assigned to work in Ireland. (This condition is, in part, intended to avoid the possible disadvantaging of Irish-resident job candidates over non-resident job candidates.)

However, as the deputy may be aware, in Budget 2018 I introduced the Key Employee Engagement Programme (KEEP) with the objective of supporting SMEs in Ireland in competing with larger enterprises to recruit and retain key employees.

Tax Credits

Ceisteanna (128)

Billy Kelleher

Ceist:

128. Deputy Billy Kelleher asked the Minister for Finance the estimated cost to the Exchequer of increasing the earned income tax credit for the self-employed by amounts (details supplied) over a full calendar year. [20095/18]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the cost of increases to the earned income tax credit as requested by the Deputy can be found on page 6 of the Ready Reckoner which is available at: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf. While some of the costs of the increases sought by the Deputy are not displayed in the Ready Reckoner, those not included can be estimated on a straight-line or pro-rata basis from the costs shown.

Insurance Compensation Fund

Ceisteanna (129)

Noel Grealish

Ceist:

129. Deputy Noel Grealish asked the Minister for Finance the status of a compensation scheme for third party claimants of a company (details supplied); the timeframe for the introduction of the scheme; if the scheme will be made a priority; and if he will make a statement on the matter. [20108/18]

Amharc ar fhreagra

Freagraí scríofa

Setanta Insurance was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law.

The Deputy will be aware that under the Insurance Act 1964, as amended, monies may be paid out of the Insurance Compensation Fund (ICF), with the approval of the High Court, in relation to an insolvent insurer, to meet claims up to a limit of 65% or €825,000 of the claim, whichever is the lesser.

The Deputy will also be aware of my decision in principle that the State will ensure that Setanta third party claimants are compensated in full, which was announced on 30 January. The Department of Finance has received confirmation from the Office of the Attorney General that there are no state-aid or other legal issues with this decision, and has therefore proceeded with the detailed arrangements to implement it. An additional provision to give effect to this decision is being included in the Insurance (Amendment) Bill, which is currently being finalised by my officials in liaison with the Office of Parliamentary Counsel and is expected to be published shortly. Once this is done the likely timeline for payment will become clearer, including the payment of the additional 35% to those who have settled their claims and have already received compensation of 65% of their claim subject to the limit outlined above.

It is however important to note that only claims which have been settled can be included in applications to the High Court for payment from the ICF. The process of settling claims is still ongoing and is subject in some cases to complex negotiations between all relevant parties. It is hoped that by the State taking steps to ensure that third party claimants are compensated in full, this will encourage the settlement of all outstanding claims as quickly as possible.

Banking Sector

Ceisteanna (130)

Bernard Durkan

Ceist:

130. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the main banks are making adequate resources available to facilitate the urgently required house building programme; and if he will make a statement on the matter. [20203/18]

Amharc ar fhreagra

Freagraí scríofa

As the deputy is aware the banks continue to increase their new lending to the economy including to the construction sector. I have been provided with the following information from both AIB and Bank of Ireland:

AIB

 "This is an area of strategic importance for the economy and the Bank. AIB is strongly supportive of the industry and we are ready and willing to increase our support as the industry grows.

We are the main bank to many of the largest developers but we also have a strong focus on mid-sized developers. We created a new dedicated team in 2017 to serve mid-sized development groups following feedback from the industry that they struggled to get the attention of mainstream Banks. This new Mid-Market team is active across the Country.

Overall, we more than doubled the size of the Bank's Development Lending Team over the last 12-months. This was done in anticipation of a marked pick-up in residential development activity in Ireland. Consequently, we expect to double our residential development lending in 2018.

On Social Housing, we are backing a number of specific developments which are being sold to Approved Housing Bodies and we have ring-fenced a €100 million Fund to further support this aspect of the market.

Regarding Student Housing, the Bank has been very active and is funding over 1,500 beds which will help the overall housing market.

Finally, we are providing on-site presence at weekends to assist mortgage seekers to get loan approvals to purchase new homes which in turn helps developers get units sold. "

BOI

"Supporting construction and development has always been a core part of Bank of Ireland’s strategy. The Bank plays a key role in supporting our customer and clients' ambitions and projects, and has a €1 billion fund for construction and development - approximately 80% of which is targeted to Ireland. This supports the development of houses, apartments and student accommodation. We are currently financing 3,500 housing units and 1,600 student beds in Ireland.

We are well positioned to increase our output this year. Our strategy for house-building is to fund the acquisition of land that is “shovel ready” – supporting Irish Government policy by encouraging house-building and discouraging land hoarding."

Departmental Contingency Planning

Ceisteanna (131)

Catherine Murphy

Ceist:

131. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the amount of funds set aside on an annual basis for contingent liability for the past ten years to date in 2018; the way in which it is determined the amount that is forecast to be needed for contingent liability; if he carries out an actuarial analysis for budgeting current and future contingent liability; if he conducts a risk assessment in the context of contingent liability; and if he will make a statement on the matter. [20066/18]

Amharc ar fhreagra

Freagraí scríofa

Public Financial Procedures set out that a contingent liability arises in any situation where past or current actions or events create a risk of a call on Exchequer funds in the future. Contingent liabilities are not recognised in the statement of financial position but are disclosed by way of a note to the appropriation account unless the possibility of an outflow of resources is remote.

In terms of my own Department, since its establishment in 2011, there have been a small number of items disclosed in the notes of the annual appropriation account of the Department with regard to contingent liabilities, most of which relate to legal costs. At present, one involves a legal case where costs have been awarded against the Department but have yet to be determined.

To date, the nature of the contingent liabilities related to my Department has not required actuarial services to estimate current and future contingent liabilities. However, the Department through its own financial and risk assessment processes identifies possible contingent liabilities as well as estimating the possible liability.

Public Parks

Ceisteanna (132)

Joan Burton

Ceist:

132. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the budget that has been allocated for the enhancement and refurbishment of the Phoenix Park in 2018; and if he will make a statement on the matter. [19765/18]

Amharc ar fhreagra

Freagraí scríofa

The Commissioners of Public Works have allocated €550,000 for the enhancement and refurbishment of the Phoenix Park in 2018.

The Phoenix Park is the largest enclosed public city park in a major capital in Europe. Capital works are undertaken as needs arise and are funded separately from within the OPW Vote. Staffing and general maintenance costs are also funded separately from within the OPW Vote.

Public Parks

Ceisteanna (133)

Joan Burton

Ceist:

133. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the budget that has been allocated for the visit of Pope Francis to the Phoenix Park in August 2018; the number of persons expected to visit the park; the preparatory work to be carried out to cater for the large crowds; the budget for restoring the park after the Pope's visit has ended; and if he will make a statement on the matter. [19766/18]

Amharc ar fhreagra

Freagraí scríofa

It is not possible to provide a fully costed estimate for the visit of Pope Francis to the Phoenix Park in August this year as arrangements for the event have yet to be finalised.

It is expected that the number of people visiting the park that day will not exceed 600,000.

The Office of Public Works (OPW) is undertaking preparatory works that will cater for the health, safety and welfare of those attending. These works will include the widening of gates (this will be a temporary measure – all gates will be restored to their existing positions after the event), the identification and lining of routes or pathways within the park, and the installation of welfare hubs, way-finding, security and stewarding facilities. A nationwide Traffic and Pedestrian Management Plan is currently under development to cater for the large crowds expected to attend, the details of which will be conveyed to the public through the Government Information Service in due course.

It is not expected that there will be any significant damage done to the park. The weather leading up to the event, and on the day itself, will have some bearing on this.

Public Parks

Ceisteanna (134)

Joan Burton

Ceist:

134. Deputy Joan Burton asked the Minister for Public Expenditure and Reform if his Department has examined the impact of the Papal visit to Ireland in 1979 on the Phoenix Park; the lessons learned by the OPW from restoration works that were carried out in the park; if it is planned to temporarily remove gates to the park; and if he will make a statement on the matter. [19767/18]

Amharc ar fhreagra

Freagraí scríofa

The Commissioners of Public Works have considerable experience in management of large-scale events in the Phoenix Park. The OPW team is closely working with organisers, contractors and World Meeting of Families to ensure that the event is managed safely and that the park is restored to pristine condition as soon as possible after the event.

Given the scale of the event, it will be necessary to remove gates to the park to safely allow egress of the participants.

Departmental Staff Recruitment

Ceisteanna (135)

Peter Burke

Ceist:

135. Deputy Peter Burke asked the Minister for Public Expenditure and Reform the number of assistant principal grade positions that will become available in County Westmeath in 2019 in respect of each Department; and if he will make a statement on the matter. [19798/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, the Public Appointments Service (PAS) is an independent, statutory body which provides professional recruitment and selection services to the civil and public service.

I am informed that the PAS currently has panels in place for the grade of Assistant Principal from competitions held in late 2016 and early 2017. These competitions were held in order to create panels of qualified individuals from which departments could draw when filling sanctioned vacancies.

The establishment of a panel for a location(s) is based on demand as notified to PAS. Vacancies will be filled, including vacancies in County Westmeath, if any, as and when required by employing departments.

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