Written Answers Nos. 377-399
377. Deputy Richard Boyd Barrett asked the Minister for Finance the number of jobs created by the Irish Strategic Investment Fund in its commercial partnerships; and the locations in which these jobs were created by companies obtaining such investment. [35040/18]
Amharc ar fhreagraThe information sought by the Deputy is available on the Ireland Strategic Investment Fund (ISIF) website at http://isif.ie/wp-content/uploads/2018/07/ISIF-H1-2018-Update-published.pdf.
I have been advised by ISIF that as at end December 2017, ISIF supported 30,786 direct and indirect jobs in the Irish economy.
The regional breakdown of those jobs is set out in the table:
|
Region |
Jobs |
|
Dublin |
50% |
|
Leinster excluding Dublin |
21% |
|
Munster |
22% |
|
Connacht |
4% |
|
Ulster |
3% |
378. Deputy Richard Boyd Barrett asked the Minister for Finance the amount that could be raised from imposing a 2% public health levy on the profits of private human health and pharmaceutical companies here including nursing homes and home care agencies. [35041/18]
Amharc ar fhreagraI am advised by Revenue that, on the basis of information included in the Corporation Tax returns filed for the tax year 2016, the potential yield from imposing a 2% levy on the profits of private human health and pharmaceutical companies, including nursing homes and home care agencies, is estimated to be in the region of €230 million, with over 99% coming from the pharmaceutical companies.
This yield is based on the industry code assigned to companies on Revenue records and does not include any yield associated with subsidiaries of these companies that are not primarily involved in the sectors mentioned in the question. It has been assumed that the levy would apply to the taxable profits of pharmaceutical companies, nursing homes and home care agencies but would not apply to medical practices or private hospitals. Additionally, the potential yield assumes no significant behavioural change on the part of these companies that could cause the expected yield to fall below expectations.
379. Deputy Richard Boyd Barrett asked the Minister for Finance the full year cost of abolishing the local property tax. [35042/18]
Amharc ar fhreagraI am advised by Revenue that the Local Property Tax (LPT) is forecast to collect €470 million in 2018. These receipts would be lost if LPT was abolished.
380. Deputy Richard Boyd Barrett asked the Minister for Finance the details of all its empty properties and land banks that have not yet been sold with regard to NAMA's assets; the negotiations that have taken place to acquire these homes for social and or affordable housing; and if he will make a statement on the matter. [35043/18]
Amharc ar fhreagraI am advised that NAMA’s loans are secured by an estimated 1,729 hectares of residential development land in Ireland which is under the control of its debtors and receivers. Where development of these sites is commercially viable, NAMA is providing funding for the delivery of housing on these sites. I am advised that in excess of 7,800 units have been completed to date and that another 20,900 units are potentially deliverable from sites that are under construction or where planning has been granted, lodged or about to be lodged. Sites with a delivery capacity of another 15,000 units are at the pre-planning or feasibility stages - these sites are either not commercially viable at current sales prices and/or have specific infrastructural requirements such as roads, water or sewerage that will need to be addressed by local authorities and other State bodies before a planning application can be lodged.
All sites are subject to Part V planning requirements whereby 10% of the properties must be provided to local authorities for social and affordable housing. Based on this statutory requirement, it is estimated that up to 780 units have been deliverable from NAMA-funded developments under Part V since 2014. For certain developments, the Part V requirements may have been fulfilled through alternative arrangements at the request of the local authorities concerned.
I am advised that NAMA holds security over an estimated 200 residential units which are currently and temporarily vacant. The majority of these units are at the sale agreed stage, or are on the market for sale, or are between tenancies and are all expected to be in use shortly.
Where NAMA identifies vacant and available residential units in its secured portfolio, it endeavours to facilitate their provision for social housing use. In this regard, since 2014, NAMA has identified 6,984 residential properties as being potentially suitable for social housing and demand has been confirmed by local authorities for 2,717 of these units. NAMA facilitates delivery of units by way of direct sale by its debtor or receiver to local authorities or Approved Housing Bodies, or by way of purchase and lease back through NARPS, its social housing vehicle. Additionally, NAMA provides funding for the remediation of such properties. To date, NAMA has delivered 2,474 houses and apartments for use as social housing and invested in excess of €350 million in remediating, completing and purchasing properties for social housing use.
It is important to note that NAMA’s debtors have the right to maximise the sales value of properties securing their loans so as to enable them to maximise their debt repayments. NAMA cannot require a debtor to take action which would reduce his/her repayment capacity, such as the sale of property at less than its market value.
381. Deputy Richard Boyd Barrett asked the Minister for Finance the volume of commercial trade that took place in shares here in 2017. [35044/18]
Amharc ar fhreagraThe transaction reporting regime established under the EU Markets in Financial Instruments Directive 2 (MiFID 2) obliges investment firms to report to competent authorities, relevant details of certain financial transactions they execute, including shares.
The designated competent authority in Ireland is the Central Bank of Ireland and the details of the transaction reporting regime is set out in Regulation 23 of SI 375 of 2017 and relevant EU legislation.
I have been informed by the Central Bank of Ireland that 6.6 million transactions in equities took place in 2017 ( a decrease of 0.4% on 2016) representing a turnover of €98bn (an increase of 9.9% on 2016).
The Central Bank of Ireland also advised me that Euronext Dublin produces annual statistics on activity on its markets which can be accessed at: http://www.ise.ie/Media/News-and-Events/2018/Irish-Stock-Exchange-year-in-review-2017-infographic-listing-trading-and-highlights.pdf.
382. Deputy Richard Boyd Barrett asked the Minister for Finance the volume of commercial trade that took place in derivatives here in 2017. [35045/18]
Amharc ar fhreagraIn Europe data is collected on derivative transactions in accordance with the requirements set out under Regulation (EU) No. 648/2012 or the European Markets Infrastructure Regulation (EMIR).
As required by EMIR, trade repositories were established to centrally collect and maintain the records of derivative transactions by EU counterparties. They play a central role in enhancing the transparency of derivative markets and reducing risks to financial stability.
EMIR sets out the organisations which can access the data collected by trade repositories which include the European Securities and Markets Authority (ESMA), the relevant competent authorities, the European Systemic Risk Board (ESRB), the relevant central banks of the European System of Central Banks and certain other bodies.
All Irish counterparties to derivative transactions are obliged to report relevant details to a trade repository. The Central Bank of Ireland, as the Irish national competent authority, has access to trade repository data for the purpose of carrying-out its functions under EMIR.
The Bank of International Settlements compiles and publishes statistics on global derivative market activity (interest rate derivatives) every three years.
The Central Bank of Ireland has published a press release and data pertaining to interest rate derivative market activity in Ireland based on this data for the period April 2013 to April 2016, the most up to date figures available. Such information can be accessed at: https://www.centralbank.ie/docs/default-source/statistics/credit-and-banking-statistics/bis-survey-on-foreign-exchange-and-derivatives-markets/gns-6-2-2-7-press-release.pdf?sfvrsn=4 https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/bis-survey-on-foreign-exchange-and-derivatives-markets.
384. Deputy Billy Kelleher asked the Minister for Finance the details of proposals (details supplied) over the 2011 to 2018 period on an annual basis in tabular form; and if he will make a statement on the matter. [35142/18]
Amharc ar fhreagraIt has not been possible to collate the information requested in the time available. However the requested information will be collated and forwarded to the Deputy in writing.
385. Deputy Eamon Ryan asked the Minister for Finance the projected revenue if alongside the existing 12.5% rate an effective actual rate of corporation tax of 6% was collected in each of the years 2000 to 2017; the projected income in 2018 and 2019 if an effective rate of 6% was in effect in tabular form; and if he will make a statement on the matter. [35201/18]
Amharc ar fhreagraAnalysis undertaken by my Department, co-authored by an independent academic, and a report undertaken by the Comptroller and Auditor General (C&AG), confirm that the overall effective rate of corporation tax, using the most appropriate methodology, paid by corporations in Ireland is between 10% and 11%. I would note that this is very close to our headline rate of 12.5% and is above the effective tax rate of 6% suggested by the Deputy. On the basis of this extensive analysis, I am satisfied that companies in Ireland are paying the appropriate rate of corporate tax on their profits generated in Ireland.
In terms of the potential extra tax that could be raised if an effective rate requirement of 6% was imposed at individual company level, I am advised by Revenue that it is not possible to accurately estimate the additional revenue that could be generated. There is no one definition of an effective corporate tax rate at individual company level and it is therefore not possible to provide an estimate of additional revenues could be made. In addition, any estimate would require knowledge of any behavioural changes on the part of the relevant taxpayers that could occur as a consequence of any change.
The Deputy may however wish to note the published statistics regarding Corporation Tax receipts that are available on the Revenue website at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/receipts/index.aspx.
Also, further information on corporate profits, before allowing credits and reliefs are published at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
386. Deputy Eamon Ryan asked the Minister for Finance if his Department has carried out an assessment of the likely revenue generated from the public sale of State holdings in a bank (details supplied); the figure that has been advised to him; and if he will make a statement on the matter. [35202/18]
Amharc ar fhreagraFollowing the very successful IPO of AIB last year the State received €3.4bn for the 29% stake it sold. This provides the State with a liquid market for its investment in the bank with the bank's shares now quoted on both the Irish (Euronext Dublin) and London Stock Exchanges. Based on the closing price of €4.80 on the 19th July the value of the State's remaining 71% stake in the bank was approximately €9.2bn.
Given the large size of this shareholding, it is our intention to realise this investment over time through partial disposals and this will be done in a measured fashion so as to maximise the proceeds.
Clearly the primary driver behind any decision to sell would be the bank's valuation however the State can only sell during certain periods of the year (e.g. restrictions apply before financial results are published and sales during holiday periods are not advisable) and I must be satisfied that my Department does not hold any price sensitive information.
In addition as the Deputy will be aware, any further disposals of AIB in 2018 would need to be approved by Government.
387. Deputy Brendan Howlin asked the Minister for Finance the breakdown by project for the capital allocation of €26 million in 2018 to his Vote group; the breakdown by project for the proposed allocation of €25 million in 2019; and if he will make a statement on the matter. [35283/18]
Amharc ar fhreagraFor 2018, my Department’s allocation is approximately €1.7 million. €1.5 million is allocated to Office Premises, and €0.2m is allocated for IT Services. My Department’s Capital Allocation provides for the routine acquisition of IT equipment and systems and certain premises expenses relating to the buildings it occupies. Aside from these types of expenditure, my Department does not have any long or medium term Capital Projects.
The remaining capital funding within the Department's Vote Group is for the Office of the Revenue Commissioners. This is to enable the Office of the Revenue Commissioners to deliver further IT Development (PAYE Modernisation). The project represents the most significant reform of the administration of the PAYE system in over fifty years. The objective of the project is that employers, employees and Revenue will all have access to the most accurate and up-to-date information available relating to pay, tax, PRSI and USC deductions. This will ensure that the right amount is collected at the right time from employees, and that employers pay their correct liabilities when required.
Revenue’s Capital expenditure largely relates to expenditure on Information and Communications Technology (ICT). Continued investment in ICT has been a major driver of productivity growth in Revenue, as well as enabling better service levels for the public and enhanced governance. Every year Revenue needs to develop and implement a series of urgent ICT projects that ensure Revenue’s ICT infrastructure can support budgetary and legislative changes as introduced by the Government or the EU, very frequently within tight timeframes.
At present, my Department has not made allocations beyond 2018 although some of the work currently in progress may not be complete by the end of the year. We will be setting our 2019 allocation during the Estimates process.
388. Deputy Louise O'Reilly asked the Minister for Finance the tax status of private members' clubs; and if he will make a statement on the matter. [35327/18]
Amharc ar fhreagra389. Deputy Louise O'Reilly asked the Minister for Finance the tax status of arcades, gambling terminals in pubs, bookmakers' shops and clubs; his plans to make to their status; and if he will make a statement on the matter. [35328/18]
Amharc ar fhreagra390. Deputy Louise O'Reilly asked the Minister for Finance the number of cases taken by the Revenue Commissioners against premises that were suspected of being in violation of a rule (details supplied); the number of inspections carried out nationally to ensure that this is being adhered to; and if he will make a statement on the matter. [35329/18]
Amharc ar fhreagra391. Deputy Louise O'Reilly asked the Minister for Finance the number of valid licences for amusement machines nationally; and the number issued to date in 2018. [35330/18]
Amharc ar fhreagraI propose to take Questions Nos. 388 to 391, inclusive, together.
The legislative framework for the gambling sector and the regulation of gambling generally is recognised by Government as outdated, with the primary legislation in this area dating back to 1956. Overall responsibility for this regulatory reform lies with my colleague, the Minister for Justice and Equality, who established an interdepartmental working group in January 2018 to progress the policy issues relating to a new Gambling Control Bill. The Minister of State at the Department of Justice and Equality chaired the working group which has met on 5 occasions this year. All relevant Government Departments, an Garda Síochána and Revenue have taken part in the working group. The main focus of the group is the role and functions of a new regulatory agency for the gambling sector. I understand that a report for Government is now being prepared by the Minister of State on foot of the group’s discussions and I want to assure the Deputy that the Government is committed to working with all affected stakeholders to create a modern regulatory framework for the gambling sector that is fit for purpose.
Under existing legal provisions relating to gaming and amusement machines, each machine made available for play must have a valid excise licence issued by Revenue. Gaming and Amusement Machine licence duties were introduced to raise revenue and have no regulatory function. Revenue is responsible for issuing licences and for detecting unlicensed or improperly licensed machines. Legislation for duty on gaming machines was included in the Finance Act 1975 and for duty on amusement machines in the Finance Act 1992. All excise licences are subject to payment of the appropriate excise licence fee and confirmation of tax clearance status of the applicant for the licence.
The most recent development in the legal framework for betting was contained in the Betting (Amendment) Act 2015, which extended the scope of Betting Duty to remote bookmaking operators and this has been implemented successfully.
In relation to the specific questions raised by the Deputy, I am advised that casinos may be operated as private member’s clubs and this was acknowledged in the report “Regulating Gaming in Ireland” published by the Department of Justice in 2008. In relation to the tax status of such clubs, I am advised by Revenue that they are subject to the same taxes as any other business, including in relation to the operation of gaming and amusement machines.
I am advised that under section 9 of the Gaming and Lotteries Act 1956, gaming is not permitted in public houses, while Section 19 of the Betting Acts 1931 – 2015 contains a requirement that the proprietor of a bookmaking premises shall not permit any other trade, profession or business to be carried out in such premises except the business of bookmaking. Accordingly, gaming machines are not permitted in public houses or bookmaking shops and it is not possible to obtain a gaming machine licence for gaming machines in these circumstances. Betting terminals are permitted in bookmakers’ premises for placing bets.
In relation to compliance action, I am advised that in 2017, Revenue started a national compliance project on the gaming and amusement sector, which is designed to identify and tackle non-compliance with tax and excise licensing obligations. To date, site visits have been carried out by Revenue officials to 285 separate premises. A range of follow-up actions are being pursued with respect to the tax and licensing issues identified, including seizure of unlicensed gaming machines where necessary. Using a range of compliance interventions this project has achieved a significant increase in tax and licensing compliance as follows:
- Almost 4,000 additional licences were issued in 2017 compared to the previous year, with €899,465 in additional excise licence duty collected; and
- Over 300 interventions have been completed yielding in excess of €1.1million in additional taxes.
This project is ongoing in all regions and I have been assured by Revenue that it is committed to addressing all forms of licensing non-compliance in the sector.
The following table set outs the number of Amusement Permits issued by Revenue this year.
|
Licence Type |
Number issued (from 1 January 2018 to 20 July 2018) |
Number issued and still valid (as of 20 July 2018) |
|
Amusement Machine Permits (for premises) |
111 |
99 |
|
Amusement Machine Licences (3-month duration) |
54 |
54 |
|
Amusement Machine Licences (12-month duration) |
5,274 |
4,645 |
The following table sets out the number of Gaming Licences (for premises) and Gaming Machine Licences (for each machine) issued by Revenue this year.
|
Licence Type |
Number issued (from 1 January 2018 to 20 July 2018) |
Number issued and still valid (as of 20 July 2018) |
|
Gaming Licence (for premises) |
60 |
60 |
|
Gaming Machine Licences (3-month duration) |
3,273 |
824 |
|
Gaming Machine Licences (12-month duration) |
2,380 |
2,380 |
I have been advised by Revenue that while the licensing year for amusement machines is from 1 July to 30 June in any given year, there is no fixed licensing period in relation to gaming machines licences.
392. Deputy Donnchadh Ó Laoghaire asked the Minister for Finance the amount provided by his Department to rape crisis centres each year for the past ten years; and the services and supports provided from this funding by each centre or project. [35409/18]
Amharc ar fhreagraMy Department has no record of providing funding to the centres in question over each of the past ten years.
393. Deputy Pat Deering asked the Minister for Public Expenditure and Reform his views on the implementation of an amendment which will close the legal loophole that permits bet-on-lottery operators to take bets on lottery products impacting good cause funds here (details supplied); and if he will make a statement on the matter. [32693/18]
Amharc ar fhreagraMy Department is aware of the issue that Deputy Deering is referring to and has met with both the Office of Regulator of the National Lottery Ireland (ORNL) and with the National Lottery licence holder, Premier Lotteries Ireland (PLI ) in respect of this matter. My Department has committed to engaging further with both the ORNL and PLI in respect of reviewing the impacts of these online lottery betting websites on the Irish National Lottery and in potential actions that could be considered to address this issue.
394. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if consideration will be given to grant the Comptroller and Auditor General the remit to audit Irish Water in view of the fact that the utility company is in receipt of public funding; and if he will make a statement on the matter. [33194/18]
Amharc ar fhreagra395. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if a provision will be made that Irish Water be required to report as required to the Comptroller and Auditor General and to be amenable to all reporting guidelines and inspection and audit powers of the Office of the Comptroller and Auditor General as provided for in the Comptroller and Auditor General (Amendment) Act 1993 in view of the fact that it receives public funding; and if he will make a statement on the matter. [33259/18]
Amharc ar fhreagraI propose to take Questions Nos. 394 and 395 together.
A potential role for the Comptroller and Auditor General in relation to Irish Water is currently being examined by the Department of Public Expenditure and Reform and the Department of Housing, Planning and Local Government.
Officials in my Department, the Department of Public Expenditure and Reform, are considering the broad issues arising from a potential role of the Comptroller and Auditor General and have sought legal advice from the Office of the Attorney General. My Department will continue to engage with the Office of the Attorney General and the Department of Housing, Planning and Local Government on this issue.
396. Deputy Eoin Ó Broin asked the Minister for Public Expenditure and Reform the status of the construction forum working group; the membership of the working group; and the number of meetings it has had to date. [33366/18]
Amharc ar fhreagraThe Construction Sector Group has been established by the Department of Public Expenditure and Reform to ensure regular and open dialogue between Government and the construction sector. This will be critical to enabling the successful implementation of the NDP and supporting a functioning construction sector more generally.
From an industry perspective, the Group will consist of representatives from each of the key segments including Construction Industry Federation, ICTU, IBEC, Engineers Ireland, Society of Chartered Surveyors Ireland, Royal Institute of the Architecture of Ireland, and the Association of Consulting Engineers of Ireland. The Group will be chaired by the Secretary General, DPER and will have senior representatives from the relevant Government Departments.
The first meeting of the group is scheduled to take place on 31st July 2018.
397. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the completion date for construction works at the new Bailieborough Garda station; if his attention has been drawn to the fact that this new station was first announced in October 2015; and if he will make a statement on the matter. [33384/18]
Amharc ar fhreagraAs previously advised, the OPW is progressing and finalising the required Planning Application. It is not possible to give a definitive completion date for the construction of the new Station until this Planning process, the required Public Procurement process and Contract Award are completed.
398. Deputy Gerry Adams asked the Minister for Public Expenditure and Reform the amount of funding allocated to the UNESCO world heritage site at Brú Ná Bóinne in each of the past five years. [35175/18]
Amharc ar fhreagraThe total operational and works expenditure for the Brú na Bóinne UNESCO World Heritage Site for each of the last 5 years is as follows:
|
Year |
2017 |
2016 |
2015 |
2014 |
2013 |
|
Total expenditure |
€2,469,255.24 |
€2,472,061.31 |
€2,321,095.41 |
€2,274,351.02 |
€2,585,022.99 |
The Department of Culture, Heritage and the Gaeltacht also provides financial support separately for research on the World Heritage site through the Royal Irish Academy.
399. Deputy Marcella Corcoran Kennedy asked the Minister for Public Expenditure and Reform if the OPW’s proposal to build a science museum in conjunction with the exploration station in the grounds of the National Concert Hall, which is adjacent to Iveagh Gardens, have taken into account the fact that the Iveagh Gardens were bequeathed to the State in 1939, with a condition to protect, conserve and restore them; if structural changes are planned to the gardens as part of this development; and if he will make a statement on the matter. [32459/18]
Amharc ar fhreagraThe OPW are very aware of the conditions associated with the bequest of the Iveagh Gardens to the State in 1939. Under clause 2 of the Deed of Indenture dated 7th December 1939 between Lord Iveagh and the Minister of Finance provides that;
“The existing open spaces shall not be built upon but shall be preserved in perpetuity as open spaces”.
The proposed Children’s Science Centre is to be located in the north wing of the National Concert Hall Complex at Earlsfort Terrace with a rear extension facing Iveagh Gardens. The construction of the proposed Children’s Science Centre is in no way undermining the conditions of the indenture between Lord Iveagh and the Minister of Finance.
