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Tuesday, 22 May 2018

Written Answers Nos. 118-136

Passport Applications Data

Ceisteanna (121, 122)

Mattie McGrath

Ceist:

121. Deputy Mattie McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the number of passport applications from non-Irish residents processed in County Cork since January 2018 date; and if he will make a statement on the matter. [22263/18]

Amharc ar fhreagra

Mattie McGrath

Ceist:

122. Deputy Mattie McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the number of passports for residents here that are being processed in the Cork passport office; and if he will make a statement on the matter. [22280/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 121 and 122 together.

The Passport Service located in my Department is one unified service composed of 3 constituent offices located in in Mount Street, Dublin; Balbriggan, Co. Dublin and South Mall, Cork. My Department continuously monitors the level of passport demand to ensure that all resources are effectively deployed. Occasionally work is redistributed between these 3 offices, on the basis of demand and availability of resources.

Under the current distribution of tasks across the Passport Service, the Cork office processes applications from Northern Ireland and Great Britain, as well as applications submitted through Ireland’s network of embassies and consulates worldwide. All Passport Express applications are processed in the Balbriggan office and online passport renewal applications are processed in the Mount Street office.

From January 1 to April 30 this year, the Cork passport office processed 35,074 applications from Northern Ireland Passport Express, 19,924 applications from the London passport office and 12,147 applications from Ireland’s network of Embassies and Consulates outside the UK and Ireland.

The Mount Street and Cork offices also accept applications from all categories of applicant, by appointment, at the public counter and, where appropriate, facilitate the issuance of emergency passports.

From January 1 to April 30 this year, the Cork passport office processed 4,535 applications that were submitted through its counter service.

Question Nos. 123 and 124 answered with Question No. 111.

Brexit Issues

Ceisteanna (125)

Micheál Martin

Ceist:

125. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade the status of Ireland's preparedness for Brexit and his Department's role in same. [22298/18]

Amharc ar fhreagra

Freagraí scríofa

Co-ordination of the whole-of-Government response to Brexit is being taken forward through the cross-Departmental coordination structures chaired by my Department.

Contingency planning for a no-deal or worst-case outcome, bringing together the detailed work being undertaken by individual Ministers and their Departments on issues within their policy remit, is now well advanced. Its focus is on the immediate regulatory and operational challenges which would result from such an outcome. It assumes a trading relationship based on the default WTO rules, but also examines the possible effects on many other areas of concern. This work is therefore providing baseline scenarios for the impact of Brexit across all sectors, which can then be adapted as appropriate in light of developments in the EU-UK negotiations, including in regard to transition arrangements and the future relationship. It also takes account of the planning being undertaken at EU level by the new Commission Preparedness Unit, which is issuing information notes aimed at different business sectors.

The Government is already acting in order to get Ireland Brexit ready. Dedicated measures were announced in Budget 2018, including a new €300m Brexit Loan Scheme for Business and a €25m Brexit Response Loan Scheme for the agri-food sector as well as additional supports for capital investment in the food industry and Bord Bia marketing and promotion activities, amounting to over €50m in total. Additional capital expenditure allocation of €4.3bn over four years will also allow the State and its agencies to properly plan major infrastructure projects while ensuring that communities and businesses can plan ahead. There was also increased funding provided to my Department for the opening of six new diplomatic missions as part of Global Footprint 2025, which will contribute to helping our exporters find new markets.

Our Government’s enterprise agencies continue to work with companies, helping them to deal with Brexit – making them more competitive, diversifying market exposure, and up-skilling teams. The Department of Business, Enterprise and Innovation published last November ‘Building Stronger Business: Responding to Brexit by competing, innovating and training’. In total 34 reports analyzing the effects of Brexit across a broad range of sectors and in some cases setting out responses have been published to date by Government Departments. All these reports are available on a dedicated Brexit webpage on my Department’s website: https://www.dfa.ie/brexit/.

Longer-term economic strategies will also be critically important in addressing the challenges of Brexit, notably Ireland 2040 – the National Development Plan. The Enterprise Strategy 2025 Renewed was recently launched and we are in active discussions with the European Investment Bank on a potential increase in investment in the country.

Before the summer the Government will finalise a paper, building on that published in May 2017, on our approach to the negotiations and our latest assessment of the economic and sectoral challenges posed by Brexit and our responses to them.

Passport Applications Data

Ceisteanna (126, 127)

Joe Carey

Ceist:

126. Deputy Joe Carey asked the Tánaiste and Minister for Foreign Affairs and Trade the way in which his Department is meeting the expressed time targets with respect to turnaround time both for the renewal and issuing of passports both express and online in the past six months; the body which reviews these targets; and if he will make a statement on the matter. [22563/18]

Amharc ar fhreagra

Joe Carey

Ceist:

127. Deputy Joe Carey asked the Tánaiste and Minister for Foreign Affairs and Trade the way in which his Department is meeting targets as outlined through the various media with respect to turnaround time both for the renewal and issuing of passports both express and online in the past six months; the body which reviews these targets; and if he will make a statement on the matter. [22564/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 126 and 127 together.

The turnaround timeframe for a passport application will depend, in the first instance, on the channel through which the application was submitted. The Passport Service provides a range of channels to Irish citizens wishing to apply for a passport. These include a postal application system, online passport application service, in person counter application facilities in Dublin and Cork and the network of Irish Missions worldwide.

The target turnaround time for applications made via the online passport application service is 10 working days plus postage. The majority of online applications are currently being processed within 5 working days, well ahead of target. The online service currently accommodates adult renewals and passport card applications and it is planned to further extend this service to other categories of renewals by the end of 2018.

The highest proportion of applications are submitted through the An Post Passport Express postal channel. The average turnaround time for renewal applications submitted through Passport Express is currently on target at 15 working days.

Other types of application, which are generally submitted through Passport Express, such as first time applications or applications to replace lost, stolen or damaged passports take longer. First time applications and applications to replace lost, stolen or damaged passports have a target turnaround time of 20 days and are currently taking 32 working days to process. Such applications must undergo additional processes including security checks.

The Passport Service is currently in its peak season for passport demand with the vast majority of applications being received between February and August each year. The Passport Service has kept its turnaround targets constant over the last 6 months in spite of continuously increasing application volumes.

Turnaround targets are determined on the basis of available resources and projected demand. Turnaround times are among a number of Key Performance Indicators (KPIs) by which the Passport Service measures its success in delivering a modern and responsive public service. The operation and performance of the Passport Service is overseen by the management board and the Secretary General of my Department. Measures taken by the Passport Service to minimise the impact of peak time application volumes on turnaround times for all categories of applications include the recruitment of additional staff and the use of targeted overtime for all Passport Offices.

The Passport Service received sanction this year for 220 Temporary Clerical Officers (TCOs) for appointment to the Passport Offices in Dublin and Cork. All TCOs in this intake have been fully trained and placed since March. These TCOs are working together with permanent staff to process passport applications and to deal with the high number of enquiries being made through the Passport Service’s various customer service channels.

The number of Full Time Equivalent staff permanently employed by my Department and assigned to the Passport Service stood at 322 at the beginning of the year. This compares to 310. Full Time Equivalent staff assigned to the Passport Service at the same point last year. In addition, over 20 additional permanent staff have been assigned to the Passport Service in 2018.

My Department has an extensive communication strategy to promote good practice amongst passport holders when planning to travel abroad. We regularly advise applicants of 3 golden rules:

- to check the validity of the passports in advance of booking travel;

- to apply at least 6 weeks in advance of their travel plans; and

- for eligible adults renewing their passport to consider the Online Passport Renewal Service passport application online facility, which is a fast, secure way for adults renewing their passport. Current average turnaround times, detailed & regularly updated information on passport services and comprehensive guides to the various application processes can be consulted at the Department of Foreign Affairs and Trade’s website www.dfa.ie/passport.

The Passport Service continues to work closely with Communications Unit of An Post to ensure that information disseminated by An Post staff is accurate and up-to-date.

Tax Code

Ceisteanna (128)

Louise O'Reilly

Ceist:

128. Deputy Louise O'Reilly asked the Minister for Finance if revenue from the sugar tax will be hypothecated for strategies to tackle obesity, including treatment; and if he will make a statement on the matter. [22028/18]

Amharc ar fhreagra

Freagraí scríofa

Hypothecation is not a feature of the Irish tax system in general. The Department of Finance is opposed to the hypothecation of Exchequer receipts as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.  This constrains expenditure decisions and can distort the allocation of resources resulting in reduced value for money and sub-optimal outcomes.

An annual budget is allocated to the Department of Health as part of the estimates process and that is assigned according to the needs within that Department, including in relation to measures to tackle the problem of obesity.

Accordingly, I do not intend to hypothecate sugar-sweetened drinks tax receipts.

Motor Insurance Costs

Ceisteanna (129)

Eugene Murphy

Ceist:

129. Deputy Eugene Murphy asked the Minister for Finance if the ongoing situation in which persons seeking car insurance policies who wish to pay by direct debit are being charged a further 20% on top of the premium price by a company (details supplied) will be investigated; and if he will make a statement on the matter. [22080/18]

Amharc ar fhreagra

Freagraí scríofa

The circumstances in which the 20 per cent additional charge referred to in this question may arise are not clear from the question. The European Union (Payment Services) Regulations 2018, which transposed the revised Payment Services Directive, prohibit a payee from requesting an additional charge from a consumer for using a SEPA direct debit. However, it is possible to apply other charges; for example an administrative fee, a service fee, or a fee where payment is made by instalments.

I am informed by the Central Bank that it has no remit over the pricing of insurance policies. However, the Consumer Protection Code 2012 requires that a regulated entity must provide a consumer, prior to providing a product or service to that consumer, with a breakdown of all charges, including third party charges, which will be passed on to the consumer. The Central Bank is responsible for ensuring compliance with this code.

Vehicle Registration

Ceisteanna (130)

Robert Troy

Ceist:

130. Deputy Robert Troy asked the Minister for Finance if consideration has been given to enabling commercial vehicles used for special occasions to have personalised registration plates; and if he will make a statement on the matter. [22604/18]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the specification for the identification mark (the “registration plate”) that must be displayed on all vehicles is contained in the Vehicle Registration and Taxation Regulations, 1992 (S.I. No. 318 of 1992).  These Regulations do not permit personalised registration plates for special occasions on commercial vehicles or any other category of vehicle.

The existing identification mark is integral to the operations of a number of agencies apart from Revenue, including An Garda Síochána, the Department of Transport, Tourism and Sport, the Department of Housing, Planning, Community and Local Government, the Road Safety Authority and the National Roads Authority.  Any change to the existing specification could only be undertaken after an assessment of the impact of such changes, including in relation to the systems and other changes that would be required.

I am advised by Revenue that there are no plans to undertake such a review.

Vehicle Registration

Ceisteanna (131)

Michael McGrath

Ceist:

131. Deputy Michael McGrath asked the Minister for Finance the rationale for bringing in changes to the vehicle registration tax, VRT, regime under section 53 of the Finance Act 2017; the rationale for including certain N1 BE vehicles in the definition of category A vehicle including seven-seater double chassis cab tippers and van crew cabs; and if a review of this change can be made before its commencement date of 31 July 2018. [22005/18]

Amharc ar fhreagra

Freagraí scríofa

I am informed by Revenue that section 130 of the Finance Act 1992, as amended by section 53 of the Finance Act 2017, provides that, from 31 July 2018, N1 vehicles with 4 or more seats and to which a BE bodywork code has not been assigned will be defined as VRT category A vehicles.  N1 vehicles which have 4 or more seats and which have been assigned a BE bodywork code will continue to qualify for the category B rate.  This will ensure that genuine commercial vehicles continue to benefit from the lower rate of 13.3% VRT.

The N1 category incorporates certain vehicles that, by design, facilitate use for non-commercial purposes (specifically those with 4 or more seats) and that were, over time, increasingly being bought and used for purposes that were clearly not commercial.  The tax advantages attached to these vehicles spurred sales volumes, creating distortions to the market (incentivising the purchase of vehicles that typically emit high levels of CO2 over those with lower levels of CO2 emissions) and resulting in loss of revenues to the State.  I am satisfied that the change in the legislation addresses this issue by providing for definitions of VRT categories A and B which accord with the design and functionality of both non-commercial and commercial vehicles.

Mortgage Schemes

Ceisteanna (132)

Peter Burke

Ceist:

132. Deputy Peter Burke asked the Minister for Finance the status of his efforts to have a bank's (details supplied) split mortgages reclassified as performing loans by the single supervisory mechanism; and if he will make a statement on the matter. [22035/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware the Single Supervisory Mechanism (SSM) has issued supplementary guidance in respect of the classification of Split Mortgages that has clarified its expectations in respect of the criteria to be met for classification of a Split Mortgage as performing.  This is currently being analysed by PTSB and will be assessed in conjunction with other options which may be available.

In that regard I note their announcement on 16 May 2018 that PTSB has decided to withdraw €0.9bn of PDH Split Mortgages from its Project ‘Glas’ sale transaction.  These are mortgages linked to Principal Dwelling Homes where the borrowers are meeting the terms agreed with the bank.

The bank continues its engagement in respect of the regulatory classification of these mortgages and will also consider alternative options for these loans, including options which will result in the bank continuing to maintain the relationship with the account holders.

ERASMUS Programme

Ceisteanna (133)

Eoin Ó Broin

Ceist:

133. Deputy Eoin Ó Broin asked the Minister for Finance if the Erasmus+ master degree loans scheme backed by the European Union is being considered by his Department; if the loan product has been discussed with the financial institutions here; and if he will make a statement on the matter. [22049/18]

Amharc ar fhreagra

Freagraí scríofa

The European Investment Bank has advised my Department that The Erasmus + programme is not a loan but a guarantee offered on student loans to masters students. As an Erasmus programme, its focus is foreign students pursuing Erasmus studies abroad in specific Programme countries rather than domestic students.

Currently the scheme is being made available through banks and universities abroad:

- Banks in Spain, France, UK and Turkey for outgoing students from these countries pursuing postgraduate study abroad and students from other Programme Countries going to Spain or UK for a Master course;

- Universities of Luxembourg and Cyprus for incoming students from other Programme countries going for a Master course at these universities.

I wish to advise the Deputy that while the potential to bring the Erasmus + master’s degree scheme to Ireland is being examined by the European Investment Bank Group with the University Bodies, so far, no decision has been made.

Further background information on Erasmus+ Degree Master Loans guarantee programme is available from the European Investment Fund and at the following website https://ec.europa.eu/programmes/erasmus-plus/opportunities/individuals/students/erasmus-plus-master-degree-loans_en

Tax Code

Ceisteanna (134)

Pearse Doherty

Ceist:

134. Deputy Pearse Doherty asked the Minister for Finance if the issue of cohabiting couples being treated differently from married couples for tax purposes has been examined; his plans to amend the situation; if the cost of such changes has been examined; and if he will make a statement on the matter. [22115/18]

Amharc ar fhreagra

Freagraí scríofa

The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy vs. Attorney General (1980). This decision was based on Article 41.3.1 of the Constitution where the State pledges to protect the institution of marriage. The decision held that it was contrary to the Constitution for a married couple, both of whom are working, to pay more tax than two single people living together and having the same income.  

Where a couple is cohabiting, rather than married or in a civil partnership, each partner is treated for the purposes of income tax as a separate and unconnected individual. Because they are treated separately for tax purposes, tax credits, tax bands and reliefs cannot be transferred from one partner to the other. Cohabitants do not have the same legal rights and obligations as a married couple or couple in a civil partnership which is why they are not accorded similar treatment to couples who have a civil status that is recognised in law.

From a practical perspective, it would be very difficult to administer a regime for cohabitants which would be the same as that for married couples or civil partners. Married couples and civil partners have a verifiable official confirmation of their status. It would be difficult, intrusive and time-consuming to confirm declarations by individuals that they were actually cohabiting and it would be difficult to establish when cohabitation started or ceased.  Furthermore, while there may be an advantage in tax legislation for a married couple or civil partners as regards the partial transferability of the standard rate band and tax credits, their legal status as spouses / civil partners has wider consequences from a tax perspective both for themselves and persons connected with them. To counter tax avoidance, numerous restrictive provisions regarding transactions between "connected persons" are contained in the various Tax Acts and the definition of "connected persons" extends to relatives and children of spouses and civil partners. Such provisions could be very difficult to prove and enforce in respect of persons connected with a cohabiting couple where the couple has no legal recognition.

To the extent that there are differences in the tax treatment of the different categories of couples, such differences arise from the objective of dealing with different types of circumstances while at the same time respecting the constitutional requirements to protect the institution of marriage. Any change to the tax treatment of cohabiting couples can only be addressed in the broader context of future social and legal policy development in relation to such couples.

Living Wage

Ceisteanna (135)

Pearse Doherty

Ceist:

135. Deputy Pearse Doherty asked the Minister for Finance if a policy in which all State-owned banks work towards paying all their workers a living wage will be committed to; and if he will make a statement on the matter. [22116/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware Government policy on banking remuneration has remained unchanged since the financial crisis. Extensive restrictions are in place, which, in summary, limit total remuneration for staff in AIB, Bank of Ireland and PTSB to €500,000 (excluding a standard pension contribution). Policy also dictates that bonuses and many other benefits cannot be paid to any staff. This policy impacts c. 23,000 workers across the three banks.

The Deputy will be further aware that I recently acknowledged  that it is possible, in the future, that the context for bank pay could change; things are changing in the economy, Brexit is on the horizon and that will likely bring with it more intense competition for talent across the sector.

We are also likely to see more companies moving into Ireland in the coming years, who will not be subject to the restrictions in the way that some of our banks are. With our economy almost back to full employment, the environment in which all of the companies who are based here operate has altered, and will continue to change. It is important that the right policies are in place to ensure a competitive but also a fair playing field.

For that reason, I have initiated a review of bank remuneration policy so that I can determine whether or not the bank pay policy that is in place is fit for purpose.

With regard to your question about a living wage, I have no role in setting general pay levels for staff at the banks as these are commercial decisions for the institutions.

Departmental Expenditure

Ceisteanna (136)

Mattie McGrath

Ceist:

136. Deputy Mattie McGrath asked the Minister for Finance the breakdown of the training and development and incidental expenses incurred by his Department in the year ending 31 December 2017. [22140/18]

Amharc ar fhreagra

Freagraí scríofa

The Department of Finance continues to invest in staff development in order to supplement the skills and qualifications of the teams, through a combination of internal and external training, learning and development.

The Department strives to improve learning and development in order to develop greater professional, technical, management and leadership skills.  Using the Performance Management and Development System (PMDS), the Department reviews the staff's performance and endeavours to identify any skills requiring enhancement so as to ensure the Department's training resources meet the business objectives.

In striving to be 'the best we can be' the Department's Learning and Development Strategy 2014-2016 introduced the Department's model of learning which utilises the 70:20:10 approach. This strategy was reviewed in 2017 and is being reassessed in 2018.

The Department has proceeded to invest in its people to increase the knowledge available which can be drawn upon for the benefit of the Department and ultimately the State. At the beginning of 2017, the Department was shortlisted and won "the Best Learning and Development Organisation” – Medium Category at the Irish Institute of Training and Development (IITD) Awards. This award recognises the importance of a learning culture which is lead by senior management and the commitment of management and staff to learning and development within the Department by benchmarking the Department against other high performance organisations.

I wish to advise the Deputy that my officials are currently preparing in tabular format the information sought by the Deputy and that this information will issue directly to the Deputy in due course.

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