Written Answers Nos. 106-120
106. Deputy Brendan Ryan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the Syria Donor Conference; the measures Ireland is undertaking to press EU and UN member states to pursue a full diplomatic resolution to the Syrian conflict and increase humanitarian assistance to displaced Syrians who require better solutions; and if he will make a statement on the matter. [20160/18]
Amharc ar fhreagraIreland has consistently been a strong donor to the victims of the Syria crisis. At the Second Brussels Conference for Syria and the Region, Ireland pledged €25 million in humanitarian support for 2018. This brings Ireland’s support since 2012 to over €100 million – our largest ever response to a single crisis. Our funding provides supports to those in need inside Syria, as well as Syrian refugees and vulnerable host communities in the region.
Given my responsibility for International Development, I led Ireland’s delegation to the Conference and met with key EU, UN and NGO humanitarian and political partners. These included EU Commissioner Christos Stylianides and United Nations High Commissioner for Refugees, Filippo Grandi. At these meetings we reiterated our concerns about the deteriorating humanitarian and protection situation and our commitment to a peaceful resolution of the conflict.
Ireland is also concerned with supporting longer-term responses for Syrians and host communities affected by the crisis. To this end, we also made a commitment to provide multi-annual, predictable assistance in response to the Syria crisis beyond 2018. In particular, support for learning and protection of young people is an issue that Ireland is committed to do more on. I was honoured therefore to join the Political Champions for Education in Conflict initiative, spearheaded by the Malala Fund and the Education Cannot Wait Fund, at the Conference.
Humanitarian assistance alone will not address the root causes of this crisis however. A comprehensive, sustainable, Syrian-owned and Syrian-led resolution is urgently required to provide lasting relief to the Syrian people. UN Special Envoy Staffan de Mistura is leading political negotiations to end the conflict based on the 2012 Geneva Communique and UN Security Council resolution 2254. Ireland and the EU fully support this process. The EU provides direct assistance to the UN-led Geneva peace talks and has launched, in coordination with the UN, an initiative to develop political dialogue with key actors from the region to identify common ground. At international level, we use every opportunity to highlight our deep concerns in relation to the Syria crisis. The Tánaiste and Minister for Foreign Affairs and Trade discussed the situation in Syria with his EU counterparts at their informal meeting on 15 February and again at the Foreign Affairs Council meetings on 26 February, 19 March and 16 April. At their most recent meeting, EU Foreign Ministers reiterated their support for the UN-led political negotiations to end the conflict, and the urgent need to reinvigorate the political track.
109. Deputy Barry Cowen asked the Minister for Finance the way in which the State Claims Agency manages individual cases; the person directly responsible for the running of the State Claims Agency in relation to individual cases; if the delegated State authorities have a say when cases are being managed; if there is transparency between the State Claims Agency and the delegated State authorities regarding the way in which individual cases are being managed; if delegated State authorities are informed of the details on cases that are been taken by the agency; and if he will make a statement on the matter. [19908/18]
Amharc ar fhreagraThe State Claims Agency (SCA) has a statutory remit to manage personal injury claims, including claims in respect of clinical negligence, on behalf of Delegated State Authorities (DSAs) including the Health Service Executive. The SCA’s claims management objective is, while acting in the best interest of taxpayers in matters of personal injury and property damage litigation, to act fairly, ethically and compassionately in its dealings with people who have suffered injuries and/or damage and who take legal actions against the State or State bodies, and their families. In cases where the SCA investigation concludes that the relevant State authority bears some or all liability, it seeks to settle claims expeditiously and on fair and reasonable terms, while seeking to in no way exacerbate the suffering of those citizens. If it considers that the State is not liable, the SCA’s policy is to defend the claims.
Individual cases are managed by teams of claims managers within the SCA. The Director of the State Claims Agency (SCA), Ciaran Breen, has oversight of all functions within the SCA.
The State Claims Agency’s mandate for managing personal injury claims on behalf of DSAs is established in legislation. When managing cases on behalf of DSAs, the State Claims Agency (SCA) engages with DSAs to carry out investigations and to establish the facts of the cases. The SCA engages with DSAs on an on-going basis in this respect. The SCA is statutorily mandated to determine the claims management strategy on the claims it manages on behalf of DSAs. The SCA engages with DSA’s throughout a case. The SCA provides regular information to DSA’s in respect of their claims’ portfolios.
110. Deputy Michael McGrath asked the Minister for Finance the policy of the State Claims Agency in relation to non-disclosure and confidentiality clauses being included in circumstances in which settlements are reached in or out of court by the agency and a person taking a case against a State body in respect of cases managed by the agency; the number of such non-disclosure or confidentiality clauses that have been entered into by the agency or representatives on its behalf in each year since 2010 by delegated authority in tabular form; the overall value for each delegated authority for each year of the settlements in which such a clause was put in place; and if he will make a statement on the matter. [20118/18]
Amharc ar fhreagraThe State Claims Agency (SCA) have advised me that it settles very few claims subject to a confidentiality agreement.
For the purposes of clarity the SCA also advise that 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.
One particular exception to a settlement not being subject to a confidentiality agreement is a claim where mediation is entered into. Part of the process of mediation is that the parties are bound by a strict confidentiality provision contained in the mediation agreement. In the very rare case that the Agency agrees a confidentiality proviso, it is usually because of some extremely sensitive, controversial or disputed element of a claim which may be requested by either party.
The SCA also advise that it does not formally record, on its IT system, the fact that any individual settlement is bound by a confidentiality clause; therefore this information is not readily available.
111. Deputy Maureen O'Sullivan asked the Minister for Finance the expected net effect of carryover measures carried over for 2019 as a result of budget 2017 measures; the way in which it is accounted for in the fiscal space projections; and if he will make a statement on the matter. [19650/18]
Amharc ar fhreagraI am assuming the Deputy is referring to Budget 2018 measures. The carryover cost in 2019 of tax measures introduced in Budget 2018 is estimated to be of the order of €14 million. It is important to point out that the exact impact of carryover will be reviewed as part of the normal Budgetary process, as there are several moving parts to be considered, such as economic growth, take up of various schemes and specific tax relevant factors, which could impact on the effect of the measures introduced.
The carryover impact of Budget 2018 current expenditure measures, as published in Expenditure Report 2018, is additional cost of some €300 m arising in 2019.
It should be noted that carryover costs impact the budget calculations in the year which they arise.
Finally, as I have stated on numerous occasions, the Government will formulate budget policy based on what is right for the economy, and will not adopt pro-cyclical policies that jeopardise the sustainability of our public finances and our future living standards.
112. Deputy Maureen O'Sullivan asked the Minister for Finance the adjustment made for indexation of income tax bands and income tax rates when calculating the fiscal space for budget 2018. [19651/18]
Amharc ar fhreagraAs part of the preparations for Budget 2018, it was estimated that the Exchequer yield from non-indexation of the income tax system would be of the order of €0.6 billion on a full year basis.
It is important to point out that the calculation of non-indexation of the income tax system for 2018 was prepared on the basis of the following technical assumptions:
1. The projected increase in non-agricultural wages in 2018 of 3.1%.
2. The Revenue Commissioners Pre-Budget 2018 Ready Reckoner.
As this is a revenue generating measure (discretionary revenue measure) it increases the amount by which government expenditure can increase under the expenditure benchmark rule.
It should be noted that I have been advised by Revenue that Tax Ready Reckoners beyond 2018 are not available. However, it is not expected that the full year yield for the Exchequer from non-indexation of the income tax system beyond 2018 would change significantly from the €0.6 billion stated above.
Furthermore, I am advised by Revenue that the Post-Budget 2018 Ready Reckoner, available at: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf , shows on page 10 the cost to the Exchequer of a 1% indexation of a number of credits and bands in 2018. Further changes can be estimated on a pro-rata basis from the information shown.
113. Deputy Maureen O'Sullivan asked the Minister for Finance the expected revenue yield from an increase in excise on diesel of five cents per litre; the expected cost of using the diesel rebate scheme to offset such an increase for commercial transport; and if he will make a statement on the matter. [19652/18]
Amharc ar fhreagraI am advised by Revenue that an increase in excise duty on diesel of five cents per litre will increase the price by 6.15 cent per litre when VAT is included. The estimated yield from an increase of 6.15 cent per litre is estimated at €166 million in a full year. The additional cost to the diesel rebate scheme to offset such an increase for commercial transport is estimated at €25 million.
114. Deputy Maureen O'Sullivan asked the Minister for Finance the expected revenue that would be generated from the restoration of the VAT rate for the hospitality sector from 9% to 13.5%; and if he will make a statement on the matter. [19653/18]
Amharc ar fhreagra115. Deputy Maureen O'Sullivan asked the Minister for Finance the expected revenue that would be generated from the restoration of the VAT rate from 9% to 13.5% to the hotel industry, that is, the price of rooms only, excluding the restaurant and pub trade. [19654/18]
Amharc ar fhreagraI propose to take Questions Nos. 114 and 115 together.
I am informed by The Revenue Commissioners that the Ready Reckoner, available at https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf (page 26), shows the impact of increases in VAT rates, including the 9% rate.
As shown in the Ready Reckoner, the yield from the restoration of the VAT rate from 9% to 13.5% across all goods and services is likely to be in the region of €520m for 2018. A tentative estimate of the yield from the restoration of the VAT rate from 9% to 13.5% specific to the accommodation sector is likely to be in the region of €220m for 2018. Both estimates assume no resulting change in consumer behavior.
116. Deputy Charlie McConalogue asked the Minister for Finance if a person who is taking part in a community employment scheme has to pay the universal social charge; and if he will make a statement on the matter. [19670/18]
Amharc ar fhreagraPayments made to participants in Community Employment Schemes are not liable to the Universal Social Charge. These payments are treated as social welfare payments and are therefore exempt from the Universal Social Charge under section 531 AM of the Taxes Consolidation Act 1997.
117. Deputy Michael McGrath asked the Minister for Finance the revenue received from the universal social charge, both PAYE and self-assessment, in 2017 and to date in 2018; and if he will make a statement on the matter. [19679/18]
Amharc ar fhreagraI am advised by Revenue that net receipts for the Universal Social Charge (USC) in 2017 were €3,131 million for PAYE and €577 million for non-PAYE.
Net receipts for USC in 2018 to-date are €1,073 million for PAYE and €42 million for non-PAYE.
118. Deputy Michael McGrath asked the Minister for Finance his views on the fact that some insurance companies refuse to quote for private motor insurance cover if the policyholder has had a claim in the past number of years; and if he will make a statement on the matter. [19710/18]
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 has the power to direct insurance companies on the pricing or provision of insurance products. Indeed, the EU framework for insurance expressly prohibits Member States from adopting such rules. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These are considered by insurance companies on a case-by-case basis.
Motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include, for example, the age and type of the vehicle, the age of the driver, the relevant driving experience, the claims record of the driver, the number of drivers and how the vehicle is used. Their own previous claims experience in this area will also be a relevant factor.
Finally, as the Deputy may be aware, under the terms of the Declined Cases Agreement (DCA), which is adhered to by all motor insurers in Ireland, 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.
119. Deputy Michael McGrath asked the Minister for Finance if sparkling water is included in the sugar sweetened drink tax; if his attention has been drawn to cases in which retailers have increased prices of soft drinks and sparkling water in advance of the tax introduction; and if he will make a statement on the matter. [19737/18]
Amharc ar fhreagraSugar Sweetened Drinks Tax is provided for by Chapter 2 of Part 1 of the Finance Act 2017. The tax commenced on 1 May 2018 and applies to first supplies in the State of sugar sweetened drinks. Sugar sweetened drinks are water and juice based drinks, in ready to consume or concentrated form, that contain added sugar and have a total sugar content of 5 grams or more per 100 millilitres in their ready to consume form.
Sparkling water is not subject to the tax unless it has added sugar which results in a total sugar content of 5 grams or more per 100 millilitres. Comprehensive details regarding the operation of the tax are provided on the Revenue website at https://www.revenue.ie/en/companies-and-charities/excise-and-licences/sugar-sweetened-drinks-tax/index.aspx.
120. Deputy Michael McGrath asked the Minister for Finance if he is satisfied that the application of VRT on imported vehicles is fully in accordance with EU law in all respects; his plans to introduce changes to the regime; and if he will make a statement on the matter. [19771/18]
Amharc ar fhreagraI am advised by the Revenue Commissioners that section 132(1), Finance Act, 1992 provided for the introduction, from 1 January 1993, of “a duty of excise, to be called vehicle registration tax”. VRT is a tax on the registration of a vehicle and is not a tax on the importation of a vehicle. Section 132(1) also specifies that the tax “shall be charged, levied and paid … on … the registration of a vehicle”.
Article 110 of the Treaty on the Functioning of the European Union (ex Article 90 TEC) provides that Member States cannot levy taxes that discriminate against imported goods or provide unfair protection to domestic goods. Over the years, the European Court of Justice, in a number of opinions and rulings, has stated that the charging of a tax such as VRT is within the competence of a Member State provided that it does not breach Article 110 of the TFEU.
I am satisfied that the Vehicle Registration tax as a whole is compatible with the provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union.
I will be introducing two significant changes to the VRT regime. The first of these will be implemented from 1 January 2019 and will address the ruling of the Court of Justice of the European Union of 19 September 2017 in respect of a proportionate payment of VRT on cars leased from other Member States (where the cars are only intended to be in the State for a temporary pre-determined period). The second will address the introduction of the Worldwide Light vehicle Test Procedure (WLTP) for CO2 emissions.
