Written Answers Nos. 122-139
122. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade the reason the programme for Government commitment to recognise the state of Palestine has not been honoured to date. [26652/18]
Amharc ar fhreagraThe Programme for Partnership Government states that the Government “will honour our commitment to recognise the State of Palestine as part of a lasting settlement of the conflict.” Successive Irish Governments have looked forward to being able to recognize a fully sovereign State of Palestine, and have seen this coming about as part of a lasting settlement. In recognition of the frustration felt both in Palestine and here in Ireland over the lack of progress towards that objective, I have made clear repeatedly in the Dáil that I am prepared to recommend to the Government early recognition by Ireland of a State of Palestine, if and when I consider that it might be helpful towards advancing the peace process and achieving the objective we seek. I have not yet concluded that that moment has arrived.
I recognise of course that such a gesture by Ireland could be a welcome sign of support for Palestinians, against a backdrop of hardship and frustration. But it would be a symbolic gesture, and as such, the Government must also consider the likely impact, and the effect of such an action on Ireland’s own influence and standing on this and other questions.
124. Deputy Brendan Howlin asked the Tánaiste and Minister for Foreign Affairs and Trade the amount of calls received by the passport office in Cork and Dublin compared to the amount of calls answered by the passport office in Cork and Dublin in tabular form; and if he will make a statement on the matter. [26684/18]
Amharc ar fhreagraThe Passport Service has a dedicated Communication Unit to respond to queries from passport applicants. This Communication Unit handles all queries for Passport Offices in Dublin, Cork and London. This Unit can be contacted by telephone, email or by web chat. I recognize that there are individuals with pressing needs who face difficulties in contacting the Passport Service. This results in multiple attempts by the same callers to reach us by phone, email and webchat. I would like to reassure you that the Passport Service is making every effort to respond to as many customer queries as possible. In the week of 11 June the Passport Service’s Communications Unit dealt with over 9,500 queries. This included 2,300 cases via the phone. In addition, over 1,500 cases were dealt with via webchat, over 3400 via email and approximately 2,300 in person at our counters in our Dublin and Cork offices.
In recent weeks, the Passport Service has allocated additional resources to the existing Communications Unit to respond to customer queries on phones, email and webchat. Measures taken include the temporary redeployment of existing Passport Service staff and the assignment of temporary clerical officers to the communications unit. For example in recent weeks, over 25 experienced staff from various sections of the Department have joined the existing Communications Team.
I would urge all applicants to consult the website at www.dfa.ie/passport for guidance in relation to their query before attempting to contact the Customer Service team. Information for all categories of applicants is available on the website, as well as our application tracking service which will show the latest updates on the application process.
128. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the implementation of the peace process in Colombia; and if he will make a statement on the matter. [26927/18]
Amharc ar fhreagra129. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the upcoming presidential election in Colombia; the potential implications of the election for the peace process; and if he will make a statement on the matter. [26928/18]
Amharc ar fhreagraI propose to take Questions Nos. 128 and 129 together.
In October 2012, the Government of Colombia and the Revolutionary Armed Forces of Colombia (FARC) began formal peace negotiations, which continued over a period of almost four years and concluded in August 2016. Following a plebiscite in October 2016, elements of the accord were renegotiated and a revised agreement was approved by the Colombian Congress in November 2016, ending a conflict which had afflicted Colombian society for over half a century.
Since then, historic strides have been made in the implementation of the peace accords, including the full decommissioning under UN supervision of FARC weapons by July 2017, seven months after the agreement was finalised, and the transformation of the FARC into a political party. Formal peace negotiations between the Government of Colombia and the guerilla National Liberation Army (ELN) resumed in May of this year and a ceasefire was agreed in the run-up and aftermath of both the first and second rounds of the presidential election which took place this month. It is my hope that these negotiations, which are taking place in Havana, can yield meaningful results.
However, as we know from our own experience, achieving peace can be complex and challenging and is far from straightforward. Significant challenges remain in implementation, including in the areas of demining, attention to victims, transitional justice, and rural development, as highlighted earlier this year by the High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini.
Indeed, the implementation of many aspects of the agreement was put on hold as preparations for this month’s presidential elections were taking place. The first round of the presidential election took place on 27 May 2018. Iván Duque, of Centro Democrático (CD), and Gustavo Petro, of the Colombia Humana movement, came in first and second place respectively.
The second round of the election took place between Duque and Petro on Sunday last, 17 June 2018. With most of the ballot counted, Iván Duque had secured the highest number of votes with more than 10 million votes, representing 54% of the total. He will assume office as President of Colombia in mid-August for a four year term.
This is a period of transition in Colombia, and it will be some time before the various actors settle in to their respective roles following the election. While Mr Duque has pledged to revisit elements of the 2016 peace deal, the official position of the new administration in Colombia in relation to the peace process is not yet known, and I expect that full details will become clearer in the coming months.
I firmly believe that Colombia’s peace accord provides the framework in which the endemic violence and impunity which has afflicted Colombian society for decades can successfully be addressed. Ireland remains committed to supporting the full implementation of the agreement, which will ensure a more peaceful future for all Colombians, including by establishing good relations with the new administration once in place.
130. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the status of efforts to address the plight of the Rohingya; and if he will make a statement on the matter. [26929/18]
Amharc ar fhreagraSince the most recent escalation of violence in Rakhine State, Myanmar, in August 2017, approximately 700,000 members of the Rohingya community have fled across the border to Bangladesh where they now reside in precarious conditions in refugee camps. Conditions are likely to deteriorate over the coming months as the monsoon season progresses. The exodus of refugees has been accompanied by credible claims of serious human rights violations by the Myanmar Security Forces. These include reports of widespread killing of civilians, sexual and gender based violence, arbitrary arrests, and the burning of Rohingya villages. Efforts by the international community to address this crisis have focused on responding to the humanitarian crisis, promoting a political solution and pressing for accountability for crimes and other violations of human rights abuses that have occurred. Most recently, on 6 June, a Memorandum of Understanding has been agreed between Myanmar and UNHCR, the UN Refugee Agency, and UNDP, the UN Development Programme, to establish a framework for cooperation between the parties aimed at creating conducive conditions for the voluntary, safe, dignified and sustainable repatriation of these refugees from Bangladesh to their places of origin. The MoU also aims to help create improved and resilient livelihoods for all communities living in Rakhine State.
Ireland continues to actively engage with our international partners in these efforts through bilateral contacts in Myanmar and via participation in the EU and UN responses. Ireland will be active on this issue at the upcoming 38th Session of the Human Rights Council.
Ireland has consistently called for an independent and impartial investigation into the serious and credible allegations of human rights violations by the Myanmar security forces. In that regard, we have strongly supported the extension of the mandates of the UN Fact Finding Mission and UN Special Rapporteur to Myanmar Yanghee Lee, and have asked the Government of Myanmar to cooperate with them and allow them access to the country. Their work in investigating and recording victim testimony and gathering other evidence, so that it can be preserved for further criminal proceedings, is crucial to ensuring full accountability.
Ireland has also actively engaged in the formation of the EU’s position including in the most recent EU Foreign Affairs Council’s Council Conclusions on Myanmar, which were adopted on 26 February last. These conclusions condemn the human rights violations in Myanmar, support the mandates of the Fact Finding Mission and Special Rapporteur and provide for targeted restrictive measures against senior military officers of the Myanmar armed forces responsible for these acts. These sanctions are now being put in place.
While these efforts are aimed at achieving a political solution to the crisis, there is also a critical need for a coherent humanitarian response to the extremely difficult conditions faced by the huge numbers of displaced members of the Rohingya community now mainly in Bangladesh. To this end, Ireland has actively supported the international humanitarian response to the refugee crisis and we provided direct funding of €1 million in 2017 with an additional €1 million allocated for 2018. Our support has focused on food, shelter, water and sanitation. Through the Irish Aid Rapid Response facility, we have provided 37 tonnes of hygiene, sanitation and shelter kits and deployed experts in water and sanitation and humanitarian coordination on the ground. In addition, as the 6th largest donor to the UN-administered Central Emergency Response Fund, Ireland’s estimated contribution through UN pooled funding amounted to a further €1 million to deliver life-saving support.
My Department will continue to liaise closely with EU and other international partners to press for progress in resolving this crisis including through our Embassy in Thailand who are closely monitoring the situation.
132. Deputy Micheál Martin asked the Minister for Finance if he has discussed the common consolidated corporate tax base, CCCTB, with his other EU counterparts recently either directly or at EU Council meetings. [26553/18]
Amharc ar fhreagraThe European Commission's current proposals for a Common Consolidated Corporate Tax Base (CCCTB) were published in October 2016 and first discussed at the November 2016 ECOFIN meeting. The proposal was prepared by the Commission without any input from Member States. The re-launched CCCTB is split into two separate Directives – a Directive for a Common Corporate Tax Base (CCTB) and a second Directive for a Consolidated CCTB. Although the Commission presented these as a unified package, the CCTB is being discussed first and consolidation will only be discussed once the CCTB is agreed.
At the December 2016 ECOFIN, Council Conclusions were approved in respect of the Commission's wider package which included the CCCTB proposal but there was no specific discussion of the proposals at that meeting. The work on the CCCTB proposal is now taking place in technical working groups at Council and Ireland is actively involved in this work.
By its nature, the Common Consolidated Corporate Tax Base (CCCTB) is a complex and detailed proposal and Member States need to fully analyse and consider its potential impact on national tax systems. Member States are discussing and debating the various aspects of the proposal in the relevant tax working parties. These discussions are progressing but much more technical consideration is needed.
Ireland is an active participant at both EU and OECD level in discussions on reform the international corporate tax system. Currently, the focus is on examining how international tax rules may need to be adapted to address the challenges arising from the ongoing digitisation of the economy.
The reform of the international tax system is regularly discussed at ECOFIN meetings where it is commonly agreed that in order to be effective, any changes to the rules should be globally agreed, evidence based, sustainable in the long run and focussed on aligning taxing rights with the location of real substantive value creating activity.
133. Deputy Clare Daly asked the Minister for Finance the basis on which he was present at a meeting of an organisation (details supplied) in Turin, Italy in June 2018; if he was an official representative of the Government; the person or body that paid for the trip; and the issues that were discussed. [26239/18]
Amharc ar fhreagraFounded in 1954, the Bilderberg Meeting is an annual conference designed to foster dialogue between Europe and North America. Every year, between 120-140 political leaders and experts from industry, finance, academia and the media are invited to take part in the conference. The conference is a forum for informal discussions about major issues facing the world.
As Minister for Finance and Public Expenditure and Reform, I accepted an invitation to attend the 2018 Bilderberg meeting, which took place from 7 to 10 June 2018 in Turin, Italy. The topics for discussion included populism in Europe; the inequality challenge; the future of work; free trade; and current events all of which are pertinent to the Government and Ireland's future development.
The expenses for this trip were treated in the same way as any other international official visit undertaken by me in my capacity as Minister for Finance and Public Expenditure and Reform.
134. Deputy Michael Healy-Rae asked the Minister for Finance the status of tracker mortgage redress for persons that are awaiting refunds; when he last met the banks regarding the matter; when he plans to meet them again; and if he will make a statement on the matter. [26246/18]
Amharc ar fhreagraAs the Deputy is aware, the Central Bank is independent in the performance of its duties in the supervision of regulated financial service providers and it is working to ensure that the tracker mortgage examination is completed as soon as possible. The Bank provided a comprehensive update on the Tracker Mortgage Examination in April 2018, which is available at: https://www.centralbank.ie/docs/default-source/consumer-hub-library/tracker-issues/update-on-tracker-mortgage-examination---april-2018.pdf?sfvrsn=4.
The April update report indicated that:
- the total number of customers identified through the Examination to end-March 2018 is c. 30,000 (of which 1,500 remain to be verified by lenders);
- 88% of identified and verified customer accounts have received offers of redress and compensation. Offers of redress and compensation are expected to be made in respect of the remaining 12% of identified and verified customer accounts by end-June 2018;
- payments may extend beyond that date for any newly identified and verified customers from the time of the April update. However, as redress and compensation schemes are underway across all lenders, the Central Bank expects that any such additional accounts will be swiftly remediated;
- total redress and compensation of €459 million has been paid to end-March 2018, an increase of €162 million since the December 2017 update which the Central Bank also published. The €459 million figure comprises €412 million paid to end-March through the Examination and €47 million paid outside of the Examination.
As part of the Tracker Mortgage Examination, intensive review and challenge of lenders by the Central Bank remains ongoing. It should be noted that verification work by lenders, and review and challenge by the Central Bank, may lead to some further increase in the number of affected customers before conclusion of the Examination.
The Central Bank has challenged, and will continue to challenge, lenders in relation to various strands of the Examination until it is satisfied that all affected customers are identified and lenders have carried out the Examination in accordance with the Framework set down by the Central Bank.
In relation to my meetings with banks, I have regular meetings with the CEOs of the banks in which the State has a shareholding as well as with the non-Irish owned retail banks operating in the Irish market. I met formally with KBC in February, with Bank of Ireland, AIB and PTSB in March, and with Ulster Bank in May during which a broad range of banking matters including progress on the tracker mortgage examination were discussed. While no dates have been scheduled for my next meetings, I remain committed to meeting the main banks on a regular basis.
135. Deputy Peadar Tóibín asked the Minister for Finance the amount of income earned by foreign resident music artists here in each of the past five years; and the amount of tax paid on this income for each of those years. [26279/18]
Amharc ar fhreagraI am informed by Revenue that although foreign resident music artists have a liability to Irish tax on income arising from the exercise of their profession in the State, it is not possible to quantify the amount of income earned by foreign resident music artists here. The reason lies in the incidental number of days the individuals are present in the Republic of Ireland, which creates numerous practical difficulties associated with gathering data. For example, the vast majority of non-resident entertainers do not file an Irish tax return as they are not obliged to do so on an annual basis, unlike Irish tax residents.
However, I can advise that in general where a concert takes place in Ireland, the artist’s performance fee is also subject to Irish VAT. Where an international performer is engaged by a promoter, it is the responsibility of the promoter to account for the VAT due on the performance fee. This means that where the promoter is established in Ireland, the promoter is required to account for Irish VAT on the performance fee. In circumstances where the artist and promoter are both established outside the State, the promoter is required to account for VAT on the performance fee where she/he is established.
Where a premises provider allows a promoter who is not established in the State to hold a concert on their premises, the provider must report details of the event to Revenue. Failure to do so can make the premises provider jointly liable for any VAT arising. This is a safeguard provision to ensure the correct VAT is collected and paid in relation to any merchandise sold at the concert venue.
136. Deputy John Curran asked the Minister for Finance if section 23A of the Taxes Consolidation Act 1997 will be amended to include professional snooker players (details supplied); and if he will make a statement on the matter. [26321/18]
Amharc ar fhreagraAs the Deputy may know, retirement relief for certain sportspersons was introduced in Finance Act 2002 and the categories of sportspersons that can avail of tax relief are set out in schedule 23A of the Taxes Consolidation Act 1997 (TCA). These categories include athletes, badminton players, boxers, cricketers, cyclists, footballers, golfers, jockeys, motor racing drivers, rugby players, squash players, swimmers and tennis players. (Cricketers and swimmers were added by to the TCA by s.5 of Finance Act 2012.) I currently have no plans to propose any further additions to schedule 23A.
137. Deputy Micheál Martin asked the Minister for Finance the amount of the €750 million allocated to Home Building Finance Ireland for 2018 that will be drawn down in 2018; if there is an expectation that it will be underspent; and if he will make a statement on the matter. [26345/18]
Amharc ar fhreagraHome Building Finance Ireland (HBFI) is to be established to provide funding on market terms to viable residential development projects whose owners are experiencing difficulty in obtaining debt funding. The legislation establishing HBFI, the Home Building Finance Ireland Bill 2018, was published on 18 June 2018 and will now commence its passage through the Oireachtas. It is envisaged that the HBFI legislation will be enacted before the summer recess, and HBFI will begin lending before the end of 2018.
Up to €750m of funds from the Ireland Strategic Investment Fund (ISIF) will be allocated to HBFI to provide funding on market terms and the fund is estimated to have capacity to finance about 6,000 homes in the coming years. This €750m will be composed of a combination of equity and loans.
Upon incorporation the Minister will provide equity of €20m which will be used to fund HBFI’s initial start-up costs. ISIF will then be directed to lend the remaining funding, of up to €730m, to HBFI at a market rate of interest in order to fund delivery of residential property. It is envisaged that this funding will be delivered in installments on receipt of funding requests from HBFI, the exact scale and timing of these requests will be dependent on market demand.
The portion of HBFI's debt funding to be drawn down in 2018 has not yet been finalised but will be determined after careful market analysis to determine that it will be commensurate to market demand.
138. Deputy Michael Healy-Rae asked the Minister for Finance his views on the cost of business insurance (details supplied); and if he will make a statement on the matter. [26354/18]
Amharc ar fhreagraBoth I and the Government are very conscious of the difficulties that increased insurance costs are having on the business sector and we continue to prioritise action in this area.
Following the publication of its Report on the Cost of Motor Insurance in January 2017, the Cost of Insurance Working Group undertook an examination of the Employer Liability and Public Liability insurance sectors in its second phase of work. While a number of the recommendations in the Motor Report are relevant to the area of business insurance – in particular, the recommendations regarding the Book of Quantum, the Personal Injuries Assessment Board and the establishment of the Personal Injuries Commission – it became clear in preparing the Report on the Cost of Motor Insurance that there was also a pressing need to examine the drivers for the rising cost of business insurance.
The second phase work culminated in the publication on January 25th 2018 of the Report on the Cost of Employer and Public Liability Insurance , following its approval by Government. This new Report makes 15 recommendations with 29 associated actions to be carried out, detailed in an Action Plan contained in the Report with agreed timelines for implementation.
The recommendations, covering three main themes, include actions to:
- Increase Transparency: enhance levels of transparency and improve data sharing and collection processes,
- Review the level of damages in personal injury cases: request that the Law Reform Commission undertake a detailed analysis of the possibility of developing constitutionally sound legislation to delimit or cap the amounts of damages which a court may award in respect of some or all categories of personal injuries, and
- Improve the personal injuries litigation framework: through a number of measures, including:
a. ensuring potential defendants are notified in sufficient time that an incident has occurred in relation to which a claim is going to be made against their policy;
b. tackling fraudulent or exaggerated claims; and
c. ensuring suitable training and information supports are available to the Judiciary to assist in the fair and consistent assessment and awarding of damages in personal injury cases.
All 29 actions are scheduled to be implemented before the end of 2019, with 26 due for completion this year. The fifth Quarterly Progress Update on implementation was published on 11 May and shows that in respect of the actions from the Report on the Cost of Employer and Public Liability Insurance due for completion in Q1 2018, all eight deadlines have been met. Both of the primary Reports and all of the quarterly updates are available on the Department’s website, within “The Cost of Insurance Working Group” sub-section of the main “Insurance” section.
As the issue of insurance costs is an important policy area, the Working Group will continue to focus on implementing the recommendations of the Report on the Cost of Employer and Public Liability Insurance in parallel with implementing those from the 2017 Motor Report. I am hopeful that the cumulative effects of the completion of the two Reports’ recommendations will include increased stability in the pricing of insurance for businesses.
139. Deputy Catherine Connolly asked the Minister for Finance if his attention has been drawn to an anomaly (details supplied) under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010; the options available to a person in such a position; if this anomaly will be investigated as a matter of urgency; and if he will make a statement on the matter. [26368/18]
Amharc ar fhreagraI am advised by Revenue that section 88A of the Capital Acquisitions Tax Consolidation Act 2003 exempts transfers made between qualified cohabitants within the meaning of Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants (CPCROC) Act 2010.
Part 15 provides for a redress scheme where court orders can be obtained in certain circumstances in relation to the transfer of property. This applies to qualified cohabitants, i.e. persons who have been in a committed and loving relationship with another person for a minimum period of 5 years (2 years where they are parents of one or more dependent children), whose relationship has ended due to death or separation and neither of whom was married to and living with another person in 4 of the 5 years immediately before the end of the relationship.
In a case of intestacy, or where a deceased qualified cohabitant has failed to provide in a will for the other qualified cohabitant, the surviving qualified cohabitant can apply for a court order under Part 15 of the CPCROC Act 2010. The court, in considering the application, will take into account a number of factors including the financial circumstances of the applicant and the claim of any other relevant parties to benefits from the deceased’s estate. If the applicant obtains a court order for the transfer of property, then the property transferring will be exempt from inheritance tax.
Where a cohabitant has specifically provided for a surviving cohabitant in his or her will, the usual inheritance tax provisions apply. While transfers between spouses and civil partners are exempt from inheritance tax, a tax-free threshold (Group Threshold), below which inheritance tax does not arise, applies in the case of other types of relationship between the person who provides the inheritance (i.e. the disponer) and the person who receives the inheritance (i.e. the beneficiary).
There are three separate Group Thresholds. The Group A threshold (currently €310,000) applies, inter alia, where the beneficiary is a child (including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. The Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer. The Group C threshold (currently €16,250) applies in all other cases, including cohabiting couples.
The redress scheme introduced for formerly cohabiting couples under the CPCROC Act 2010 provided protection in law for long-term cohabiting couples and provided safeguards for an economically dependent cohabitant where a relationship ended or on death. The introduction of an exemption from inheritance tax was part of a suite of changes to the Tax Acts consequent on the redress provisions. Thus, a transfer of property under a redress court order is not liable to stamp duty, the transferor of property does not have a capital gains tax liability on the transfer and the recipient of property is not liable to gift tax or inheritance tax. Without these changes, the cohabiting couple would be treated as unconnected individuals and full charges to each of these taxes could arise.
The introduction of the exemption from gift tax and inheritance tax in these cases was not intended to give cohabiting couples the same tax treatment as married couples or civil partners but simply legislated for the tax consequences of the redress arrangements for cohabitants under the CPCROC Act 2010.
