Written Answers Nos. 140-157
140. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a wealth tax at a rate of 1% set at a personal threshold of €1 million of net wealth with no asset exemptions; and if he will make a statement on the matter. [26372/18]
Amharc ar fhreagra141. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a wealth tax at a rate of 1% set at a personal threshold of €1 million of net wealth with no asset exemptions and with a rising rate of 1% at each additional €500,000 wealth threshold (details supplied); and if he will make a statement on the matter. [26373/18]
Amharc ar fhreagra142. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a wealth tax at a rate of 1% set at a personal threshold of €1 million of net wealth with asset exemptions for voluntary pensions and farms; and if he will make a statement on the matter. [26374/18]
Amharc ar fhreagra143. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be raised by introducing a wealth tax at a rate of 1% set at a personal threshold of €1 million of net wealth with asset exemptions for voluntary pensions and farms and with a rising rate of 1% at each additional €500,000 wealth threshold (details supplied); and if he will make a statement on the matter. [26375/18]
Amharc ar fhreagraI propose to take Questions Nos. 140 to 143, inclusive, together.
In order to estimate the potential revenue from a wealth tax, it is necessary to identify the wealth held by individuals. As there is currently no such wealth tax in operation in Ireland, the Department understands that the Revenue Commissioners have no basis or requirement to compile the data needed to produce estimates in relation to a potential wealth tax. Although an individual's assets and liabilities are declared to the Revenue in a number of specific circumstances (for example, after a death), this information is not a complete measure of assets and liabilities in the State, nor is it recorded in a manner that would allow analysis of the implications of an overarching wealth based tax.
However, in 2013 the Central Statistics Office conducted the first comprehensive survey of household wealth in Ireland (the Household Finance and Consumption Survey (HFCS)). The survey provides information on the ownership and values of different types of assets and liabilities along with more general information on income, employment and household composition.
During 2016, my Department, jointly with the Economic and Social Research Institute (ESRI), conducted a research project into the distribution of wealth in Ireland and the potential implications of a wealth tax using the HFCS. The research formed part of an on-going joint-research programme with the ESRI on the Macro-Economy and Taxation. The research paper, available on the ESRI website, presented results on the composition of wealth across both the wealth and income distributions in Ireland. A number of wealth tax scenarios were then applied to the Irish data (wealth tax regimes from other jurisdictions and hypothetical scenarios). In each case, the associated tax bases and revenue yields, the number of liable households across the income distribution, and the characteristics of the households affected are outlined.
The wealth tax scenarios in the research paper that are closest to the wealth taxes outlined by the Deputy in his questions are the high threshold-large exemptions scenario (which best matches the scenario set out in PQ 26374), and the high threshold-no exemptions scenarios (which best matches the scenario outlined in PQ 26372) in Table 5 of the Department of Finance/ESRI study.
The first of these scenarios (high threshold-large exemption) has a personal threshold of €1.0 million (doubled if married and a €500,000 increase per child), applies a 1% tax rate and excludes farms, the household main residence, business and pension assets. This scenario, given the distribution of household wealth in Ireland in 2013, is estimated to raise €53 million as outlined in Table 8 of the Department of Finance/ESRI study. The research notes that its tax revenue estimates are static; in other words, no behavioural response to the tax is modelled. The estimate of €53 million, therefore, is likely to be an upper estimate of the revenue that could be raised.
The second scenario (high threshold-no exemption), applies a 1% tax rate but allows for no exclusions. This scenario, given the distribution of household wealth in Ireland in 2013, is estimated to raise €248 million as outlined in Table 8 of the Department of Finance/ESRI study. Again, the research notes that its tax revenue estimates are static; in other words, no behavioural response to the tax is modelled. The estimate of €248 million, therefore, is also likely to be an upper estimate of the revenue that could be raised.
Given that the above scenarios are not identical to those outlined in the Deputy's questions, care should be taken in interpreting the revenue estimates.
In order to estimate the yield from a tax with the precise parameters as outlined in the Deputy's questions, it would be necessary to seek the agreement of the CSO to revisit its original survey data for this specified purpose. This would be a significant undertaking that would take considerable time and resources to complete. It is also noted that the HFCS does not include specific data on the global assets for those domiciled or ordinarily resident and the domestic assets for those resident for tax purposes. As such, any estimate on the yield obtained from HFCS data would not fully capture the parameters outlined in the Deputy's question.
However, there are a number of additional scenarios set out in the paper which the Deputy may find informative.
144. Deputy Michael McGrath asked the Minister for Finance the position in relation to people submitting complaints to their financial institution or to the Financial Services and Pensions Ombudsman in relation to alleged mis-selling of payment protection insurance policies; the position in relation to the statute of limitations; if people can now make a complaint if they fell outside the scope of the Central Bank investigation into this issue due to the fact they bought the product prior to July 2007; and if he will make a statement on the matter. [26377/18]
Amharc ar fhreagraAs I informed the Deputy on Tuesday 12th June in response to PQ 24855, the Financial Services and Pensions Ombudsman Act 2017 provides for the following time limits in relation to long-term financial services.
"(2) A complaint in relation to -
(a) conduct referred to in section 44(1)(a) that, subject to the requirements specified in subsection (3), relates to a long-term financial service, or shall be made to the Ombudsman within whichever of the following periods is the last to expire:
(i) 6 years from the date of the conduct giving rise to the complaint;
(ii) 3 years from the earlier of the date on which the person making the complaint became aware, or ought reasonably to have become aware, of the conduct giving rise to the complaint;
(iii) such longer period as the Ombudsman may allow where it appears to him or her that there are reasonable grounds for requiring a longer period and that it would be just and equitable, in all the circumstances, to so extend the period.
(3) The requirements referred to in subsection (2)(a) are that -
(a) the long-term financial service concerned has not expired or otherwise been terminated more than 6 years before the date of the complaint, and the conduct complained of occurred during or after 2002, or
(b) the Ombudsman has allowed a longer period under subsection (2)(iii)."
In relation to Payment Protection Insurance (PPI), I understand from the Financial Services and Pensions Ombudsman's Office that this may, in certain circumstances, be considered a long term financial product when there is a life cover or death benefit attaching. In addition if the loan to which the payment protection is attached is over five years and one month in duration, it would be considered a long term financial product. In these circumstances the Ombudsman may investigate a complaint where the conduct complaint of occurred during or after 2002 or at his discretion before this date.
This would apply even if the conduct being complained of was outside the scope to the Central Bank review. The Deputy will be aware that the Consumer Protection Code 2006 came fully into effect on 1 July 2007 and that the objective of the Review was to identify if there were instances where the Code was not complied with and where appropriate to remediate customers.
I should stress that it must appear to the Ombudsman that there are reasonable grounds for requiring the longer period and it would be just and equitable in all the circumstances to extend the period.
The statute of limitations is a matter for my colleague the Minister for Justice and Equality.
145. Deputy Catherine Murphy asked the Minister for Finance the amount paid per project to a company (details supplied) since 1 January 2016 to date by year, amount and project name; and if he will make a statement on the matter. [26390/18]
Amharc ar fhreagraThe total amount paid per project to the company Mediavest since 1 January 2016 to date is detailed in the following table.
|
Year |
Project |
Amount |
|
2017 |
We engaged Mediavest to place an advertorial with the Sunday Business Post to publicise the Department winning a National Training Award from the Irish Institute of Training and Development. |
€2,870.54 |
146. Deputy Joan Burton asked the Minister for Finance if he will address a matter (details supplied) regarding rental income; and if he will make a statement on the matter. [26420/18]
Amharc ar fhreagraI am advised by Revenue that incomes from various sources, such as rental income, are combined in the tax assessment calculation and it is therefore not possible to identify the resulting tax yield from any one particular income source.
Revenue have also advised me that the tax returns up to and including the 2015 tax year did not require rental income to be returned in a manner that separately identified income from residential and non-residential property. It is therefore not possible to provide the proportion of residential rental income separately.
Tax returns for 2016 now include separate declarations of residential and non-residential rental incomes and data from these returns is currently being processed and will be made available in the coming months.
The total gross rental income from both residential and commercial property combined, for each of the years 2010 to 2015, is set out in the following table.
|
Year |
Rental Income (€m) |
|
2015 |
€4,003 |
|
2014 |
€3,982 |
|
2013 |
€3,938 |
|
2012 |
€4,034 |
|
2011 |
€4,139 |
|
2010 |
€4,258 |
In relation to the forecast of tax on rental income, my Department together with Revenue forecasts tax receipts on a tax head basis. Separate forecasts are not estimated for particular sectors or types of economic activity.
147. Deputy Charlie McConalogue asked the Minister for Finance his plans to reintroduce tax relief for trade union membership subscriptions; and if he will make a statement on the matter. [26443/18]
Amharc ar fhreagraA review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on budget day 2016. The review may be found at the following link:
(http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf)
The review concluded that:
"... analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.
The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight ."
Given the conclusions of the review, I have no plans to reintroduce such a relief.
148. Deputy Jan O'Sullivan asked the Minister for Finance when he plans to publish legislation in relation to the national claims information database in view of the introduction of the general data protection regulation, GDPR; and if he will make a statement on the matter. [26452/18]
Amharc ar fhreagraI plan to publish the legislation in relation to the national claims information database in the coming weeks, subject to approval by the Government. In drafting the Bill, my Department has kept in mind the need to ensure that data protection requirements are met.
In broad terms, the Bill as drafted will require the Central Bank to collect data from insurance undertakings for the purpose of producing an annual report. Insurance undertakings shall be required to use their best endeavours to ensure that the information is provided to the Bank in such a form that no individual is identifiable from it, and where an individual is identifiable, the Bank is required to ensure that the identity of that individual is not disclosed by it (in addition to any other Data Protection requirements). The data included in the Annual Report is also required to be combined in such a way that no individual or insurance undertaking is identifiable from it. Thirdly, while the Central Bank may provide any data collected to a person upon request, this power is subject to safeguards.
Finally, I am confident that the Central Bank of Ireland will meet the requirements of the Data Protection Act, 2018, in the performance of its functions in this regard.
149. Deputy Shane Cassells asked the Minister for Finance the number of public consultations held by his Department or by a State agency under the remit of his Department; the number of replies received per consultation; and the cost of each consultation in each of the years 2011 to 2017 and to date in 2018, in tabular form. [26461/18]
Amharc ar fhreagraMy Department has carried out 56 public consultations since 2011, and a table providing the details is set out below. The majority of the consultations did not incur an explicit cost as part of the work carried out by staff in my Department in relation to public consultations. Such work forms part of the Department’s regular staff costs and is not itemised separately.
Three consultations are ongoing on a Review of Local Property Tax, The Possible Introduction of a Vacant Property Tax and on The Feasibility of an Insurance Claim-by-Claim Register, therefore I am not in a position to provide all of the information requested on these consultations at present.
The Employment and Investment Incentive (EII) and Start Up for Entrepreneurs (SURE) schemes are currently the subject of a comprehensive independent review which is being carried out by Indecon International Economic Consultants. The work involves detailed econometric modelling, as well as an enhanced public consultation process involving reviewing submissions from a wide range of stakeholders and contact with key organisations, as well as a detailed survey-based consultation programme with firms who have been assisted as part of the review. The total review is budgeted to cost around €75k. It is difficult to assess the proportion of the overall review cost that will be attributable to the public consultation process at this time, though Indecon have indicated they expect it to be around 15% of the total.
Regarding the 17 bodies under the aegis of my Department, 5 have conducted a total of 78 public consultations, details of which are set out in a separate table. As in my Department, an explicit cost was not incurred for a number of consultations as work carried out in these bodies in relation to public consultations forms part of the normal course of business for the bodies and is therefore accounted for within their overall operational budgets.
Department of Finance – Bodies under the Aegis
Public Consultations 2011 – 2018 (completed)
|
Body |
Number of public consultations in each of the years 2011 to 2017 and to date in 2018 |
Number of replies received per consultation in each of the years 2011 to 2017 and to date in 2018 |
Cost of each consultation in each of the years 2011 to 2017 and to date in 2018 |
|
Comptroller &Auditor General |
2017 |
Irish Language Scheme - 2 |
€687.93 |
|
Central Bank |
2011 - 2018 = 70 |
The Central Bank has indicated that it is not in a position to provide the number of submissions on each of the 70 consultations. Each of these consultations are public and all submissions are published on the Central Bank website |
Nil. |
|
Investor Compensation Company Limited |
2012 2015 |
Funding Arrangements of the ICCL - 19 Funding Arrangements of the ICCL - 3 |
Circa €7,500 (to print and post the Consultation Paper to the investment firms in the Investor Compensation Scheme). Circa €2,100 (postage alerting the investment firms in the Investor Compensation Scheme to the electronic publication of the Consultation Paper on the ICCL’s website); |
|
Office of the Revenue Commissioners |
2014 2016 |
Statement of Strategy - 10 Third Irish Language Scheme - 27 PAYE Modernisation - 77 Statement of Strategy - 15 |
Nil €15,478 €30,370 Nil |
|
Tax Appeals Commission |
2017 |
Rules & Procedures of the Tax Appeals Commission - 12 |
€4,447.05 (Advertisement placed in 3 national newspapers). |
Department of Finance - Public Consultations 2011 – 2018 (completed)
|
Number of public consultations in each of the years 2011 to 2017 and to date in 2018 |
Number of replies received per consultation in each of the years 2011 to 2017 and to date in 2018 |
Cost of each consultation in each of the years 2011 to 2017 and to date in 2018 |
|
2011 |
Commission on Credit Unions - 144 Public Consultation To inform the Report of the Commission Credit Unions - 120 Legacy Property Based Reliefs - 743 |
Nil |
|
2012 |
VRT and Motor Tax - 34 Central Bank (Supervision and Enforcement) Bill 2011 - 7 National Discretions SEPA - 11 General Scheme of Credit Union Bill - 20 Donations to Approved Bodies - 61 Film Relief – 20 Tax Implications of Appointing a Receiver – 11 Tax Residence Rules - 8 |
Nil |
|
2013 |
Proposed changes to Pay & File date - 86 Remuneration discretions in the Capital Requirements Regulation and Directive (CRD IV) - 2 Member State discretions in the Capital Requirements Regulation and Directive (CRD IV) – 1 Receiverships: Follow up -5 Review of Research and Development Tax Credits - 23 |
Nil |
|
2014 |
IBFD Spillover Analysis - Possible Effects of the Irish Tax System on Developing Economies – 94 * OECD Base Erosion and Profit Shifting Project in an Irish Context - 25 Second Irish Language Scheme - 6 Transposition of the Bank Recovery and Resolution Directive - 1 Member State discretions available in the transposition of the 2014 Mortgage Credit Directive - 9 European Markets Infrastructure Regulation (EMIR) - 11 Investor Compensation Act Regulations – 1 Certain Discretionary Measures in the Solvency II Directive - 3 Stabilisation Levy Consultation - 33 Agri-taxation - 46 Employment and Investment Incentive & Seed Capital Scheme - 19 Special Assignee Relief Programme - 13 Foreign Earnings Deduction - 9 |
* The consultation on IBFD Spillover was carried out by my Department and submissions were provided to external consultants commissioned to undertake the Spillover Analysis costing €94,678.00. Nil for all others in 2014. |
|
2015 |
Review of the Local Property Tax 2015 - 51 Tax treatment of expenses of travel and subsistence for employees and office holders - 52 Knowledge Development Box Consultation - 34 Amalgamation of the Offices of the Financial Services Ombudsman and the Pension Ombudsman - 25 Transposition of the Deposit Guarantee Scheme Directive - 21 Joint Public Consultation Department of Finance/Central Bank of Ireland on Funding the Cost of Financial Regulation - 25 Consultation on national discretions - Multilateral Interchange Fee Regulation - 20 Consultation on national discretions – EU Payment Accounts Directive - 8 Capital Markets Union - Commission Green Paper – 9 |
€7,181.56 Nil for all others in 2015. |
|
2016 - 7 |
The use of intermediary-type structures and self-employment arrangements: implications for social insurance and tax revenues - 24 Double Taxation Treaty with the United States of America - 19 The Financial Institutions - 7 National Discretions – EU Revised Payment Services Directive - 14 Market in Financial Instruments Directive (MiFID) II - 14 4th Anti-Money Laundering Directive - 21 Taxation of Share Based Remuneration - 33 |
Nil |
|
2017 |
Sugar Tax - 30 Betting Tax - 13 Review of Ireland’s Corporation Tax Code - 16 Review of Stamp Duty on Shares - 12 Third Irish Language Scheme - 0 Potential Regulation of Crowdfunding - 9 Transposition of EU Directive 2016/97 on Insurance Distribution (IDD) - 3 Tax and Fiscal Treatment of Landlords – 69 |
Nil |
|
2018 |
Review of Corporation Tax Code - 22 General Scheme of the Central Bank (National Claims Information Database) Bill - 6 Agri-Taxation - 17 |
Nil |
150. Deputy John Deasy asked the Minister for Finance the discussions his Department has had with relevant agencies and industry representative bodies to enable newly qualified taxi drivers to obtain vehicle insurance at a reasonable price. [26487/18]
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 can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms and conditions that they should apply in respect of particular categories of drivers or vehicles.
However, it is acknowledged that pricing in the motor insurance sector has been subject to a lot of volatility in recent years and, indeed, the problem of rising motor insurance premiums was the main impetus for the establishment of the Cost of Insurance Working Group. Its Report on the Cost of Motor Insurance, which was published in January 2017, makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes.
In line with the EU framework, the Cost of Insurance Working Group’s starting position on insurance for taxi drivers was that it was not possible for it to make a recommendation on pricing as this is primarily a commercial matter for insurers. It did however recognise that this sector serves a social as well as an economic purpose, particularly in rural areas where public transport is less readily available. This position was acknowledged by the inclusion of Recommendation 10 in the Report of the Cost of Insurance Working Group on the Cost of Motor Insurance. This recommended that the Advisory Committee on Small Public Service Vehicles should enter regular discussions with Insurance Ireland to explore solutions for drivers in the sector.
That Fifth Update Report, published on 11 May 2018 at http://www.finance.gov.ie/wp-content/uploads/2018/05/5th-Progress-Update-Q1-2018-Focus.pdf, outlines the implementation of this recommendation. In summary, Insurance Ireland met with the Advisory Committee on Small Public Service Vehicles, commonly known as the Taxi Advisory Committee (TAC), on 22 May 2017. The TAC submitted the required report in relation to this meeting on 21 June 2017 to the Minister for Transport, Tourism and Sport. To date, no further meetings have taken place between the TAC and Insurance Ireland. However, the TAC has advised my officials that it is keeping itself informed of developments in the area, particularly through the industry representatives on the Committee, and future meetings with Insurance Ireland are a part of the TAC strategy. Recommendation 10 has been completed in the sense that the TAC has reported to the Minister for Transport. Notwithstanding this, my view would be that work needs to continue on this general issue. Therefore, I look forward to further engagements between the TAC and the insurance industry.
I would add that, notwithstanding the role of the TAC, the issues raised by the taxi sector were in the main similar to those affecting consumers generally, notwithstanding that there are risks that are specific to the sector. While there is no silver bullet to reduce the cost of insurance, I believe that the implementation of both the Cost of Insurance Working Group Motor Report and Employer/Public Liability Report should deliver fairer premiums for consumers, including taxi drivers. In addition, I am of the view that this ongoing work should better facilitate potential new entrants to the market. In this regard, I have been informed by my officials that Insurance Ireland has stated that there has been some increase in market capacity in relation to the provision of motor insurance for taxi drivers recently.
151. Deputy Pearse Doherty asked the Minister for Finance the estimated surplus from National Asset Management Agency, NAMA; when the surplus will accrue to the State; his plans for the surplus; and if he will make a statement on the matter. [26494/18]
Amharc ar fhreagraI wish to advise the Deputy that, as outlined in its recent 2017 Annual Report, NAMA expects to return a surplus to the State in the region of €3.5bn, subject to prevailing market conditions, when it completes its work. This is an increase of €500m from the previous estimate in its 2016 Annual Report, and a testament to the progress that NAMA has made in achieving its primary objective of enhancing the value of its assets in the interest of the State.
It is important to recognise that this is a projected surplus - it will only materialise after NAMA’s debt is fully repaid and NAMA’s ongoing work is completed. It is expected that NAMA will substantially complete its work by 2020. The Agency announced in October 2017 that it had redeemed all of its €30.2bn in Senior Debt which was guaranteed by the State and in April 2018 it redeemed €243m of its subordinated debt. However, notwithstanding the successful achievement of repaying the State’s contingent liability, three years ahead of schedule, there is still a significant body of work yet to be completed by NAMA.
This work includes completion of NAMA’s residential and Docklands SDZ funding programmes, the repayment of its outstanding subordinated debt of €1.4bn, and deleveraging of the remainder of its loan portfolio. The carrying value of the portfolio as year-end 2017, net of cumulative impairment, was €3.2 billion. I am advised that this residual loan portfolio will require intensive case management and asset management if the projected terminal surplus is to be realised. As such, the projected surplus will not accrue to the State before 2020.
Any NAMA surplus paid, while Exchequer positive, will not impact the general government balance, in line with Eurostat rules. It will be a decision for the Government as to how any surplus returned by NAMA will be utilised within the framework of the fiscal rules. However, the intention has always been to use such receipts from the resolution of the financial sector crisis to pay down our national debt and reduce our debt servicing costs.
152. Deputy Seán Barrett asked the Minister for Finance his plans to revise or remove the deemed disposal rule which was introduced in the Finance Act 2006; and if he will make a statement on the matter. [26538/18]
Amharc ar fhreagraFinance Act 2000 introduced the gross roll-up taxation regime for investments in certain investment undertakings and life assurance policies. Generally the regime provides that there is no annual tax on income or gains arising within the investment. Instead, tax applies at an investor level.
Finance Act 2006 introduced the concept of deemed disposals every 8 years in relation to these investments. A deemed disposal occurs 8 years following inception of a policy of life assurance or acquisition of a fund and then every 8 years thereafter. The deemed disposal rules also apply to equivalent offshore funds. Any gain on the investment which arises from the date of inception or the date of acquisition to the date of the deemed disposal is subject to tax. This ensures that income isn’t being rolled up in life assurance policies or funds without being taxed. On the ultimate disposal of the investment any tax paid which arose as a result of a deemed disposal is allowed as a credit against any final tax liability on disposal.
The 8 year deemed disposal rule is not currently under review at this time.
153. Deputy Michael McGrath asked the Minister for Finance the restrictions on expenditure under the European fiscal rules once a member state is in the preventive arm of the fiscal rules, has met its medium term objective and has reached its target for debt to GDP; and if he will make a statement on the matter. [26619/18]
Amharc ar fhreagraThe preventive arm of the Stability and Growth Pact endeavours to ensure that fiscal policy leads to sustainable public finances over the short and longer term.
A key component is that Member States attain a country-specific Medium Term budgetary Objective (MTO) which is set in structural terms. For Ireland this is currently a structural deficit of 0.5 per cent of GDP.
Assessment of compliance with the requirements of the preventive arm takes a two-pillar approach. Assessment of the structural balance, the first pillar, is complemented by an analysis of the growth rate of an expenditure aggregate net of discretionary revenue measures, i.e. the expenditure benchmark, which constitutes the second pillar. Compliance with the preventive arm is assessed through an overall assessment taking both elements into account.
Member States at their MTO must ensure that government expenditure grows at most in line with a medium-term rate of potential GDP growth, unless any excess growth is matched by discretionary revenue raising measures. The medium-term rate of potential growth ensures adherence to the MTO over time.
If a Member State has overachieved its MTO then any deviation on the expenditure benchmark shall not be considered significant, taking into account the possibility that significant revenue windfalls and the budgetary plans laid out in the Stability Programme do not jeopardise the MTO over the programme period.
154. Deputy Michael McGrath asked the Minister for Finance the amount of the €57.6 billion of Government bonds to be refinanced over the next five years held by the Central Bank as part of the ECB's asset purchase programme; the amount of these bonds held by other eurozone central banks as part of the programme; the amount of these bonds held directly by the European Central Bank as part of the programme; and if he will make a statement on the matter. [26624/18]
Amharc ar fhreagraI have been advised by colleagues in the Central Bank of Ireland that the Eurosystem does not publish details of the holdings of individual bonds under the Public Sector Purchase Programme (PSPP).
The cumulative monthly net purchases of Irish Government bonds by the Eurosystem (ECB and Central Bank of Ireland) as part of the Public Sector Purchase Programme (PSPP) stood at €27,614 million.
This book value is referenced on the ECB website, where there is a table with a breakdown of debt securities under the PSPP under the section on Monetary Policy, subsection Asset purchase programmes. This page is accessible by use of the following link:
http://www.ecb.europa.eu/mopo/implement/omt/html/index.en.html#pspp
155. Deputy Billy Kelleher asked the Minister for Finance the status of the implementation of the recommendations of the task force on the motor insurance industry; the status of each of the recommendations; the length of time it will take for individual recommendations; and if he will make a statement on the matter. [26641/18]
Amharc ar fhreagraThe Deputy will be aware that the Cost of Insurance Working Group’s Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are set out in an Action Plan in the Report.
Work has been ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group prepare quarterly updates on its progress.
The Fifth Progress Update was published on the Department of Finance website on 11 May 2018. It shows that of the 50 separate deadlines set up to the end of Q1 2018 within the Action Plan, 40 have been met, while substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”.
In relation to both the outstanding actions from previous quarters and to the remaining 12 actions scheduled for completion in Q2, Q3 and Q4 of 2018, all efforts are being undertaken in order to complete them as soon as possible. At this juncture, as highlighted in the last update report, it is anticipated that the action points likely to be delayed beyond 2018 are those related to the large-scale initiatives under the remit of the Minister of Transport, Tourism and Sport. These include the completion of the Master Licence Record project and the database to identify uninsured drivers. However, it is expected that the vast majority of the Action Plan will be completed by the end of this year.
For more information on the status of each individual recommendation, including the envisaged timeframes for completion, I refer the Deputy to the quarterly update reports. Both the Report 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.
Finally, it should be noted that the most recent CSO data (for May 2018) indicates that private motor insurance premiums have decreased by 19% since peaking in July 2016. While it is accepted that motor insurance premiums are still at a very high level for many people, such statistics indicate at least a greater degree of stability in the market on an overall basis. I am hopeful that this trend in pricing will be maintained and that premiums shall continue to fall from the very high levels of mid-2016.
156. Deputy Fiona O'Loughlin asked the Minister for Finance the estimated revenue that would be raised if the sugar sweetened drinks tax was extended to include milk based products; and if he will make a statement on the matter. [26689/18]
Amharc ar fhreagraThe tax on sugar-sweetened drinks commenced on 1 May 2018 and applies to water and juice based drinks with a sugar content of 5 grams per 100 millilitres or above.
The rationale behind imposing a tax on sugar-sweetened drinks is to help tackle obesity by reducing the consumption of liable water and juice based drinks. Milk products are outside the scope of the tax on the basis that they provide satiation, which prevents excessive consumption, as well as nutritional benefits such as calcium and protein. This is the established policy position based on scientific evidence and this position was endorsed by the European Commission in its positive State aid decision in relation to the tax.
It is not possible to easily estimate the additional revenue which would be generated by extending the sugar sweetened drinks tax to milk based products.
157. Deputy Clare Daly asked the Minister for Finance his plans to reduce the current 23% VAT rate that applies to menstrual cups to 0% to bring it into line with the rate that applies here for other sanitary items. [26699/18]
Amharc ar fhreagraVAT is guided by the EU VAT Directive, with which Irish VAT law must comply. In Ireland, certain sanitary products, such as sanitary towels and tampons, are charged to VAT at the zero rate.
Article 110 of the VAT Directive allows Member States to apply a zero rate of VAT to goods or services that are social in nature, that benefit the final consumer and which applied at a zero rate on and from I January 1991. Sanitary items like sanitary towels were applied at the zero rate since 1975, while sanitary tampons have applied at the zero rate since 1984.
As both applied at the zero rate since before 1991, it is possible to retain the zero rated VAT treatment on these products. However, it is not possible to apply the zero rate to other newer sanitary products that were not zero-rated on 1 January 1991.
