Written Answers Nos. 133-152
133. Deputy Aindrias Moynihan asked the Tánaiste and Minister for Foreign Affairs and Trade the turnaround time for passport applications; the number of persons waiting to have passport applications processed through the Passport Office; and if he will make a statement on the matter. [53480/18]
Amharc ar fhreagraThe turnaround time for a passport application will depend on the channel through which the application was submitted.
The table below summarises the turnaround times for the Passport Service’s main application channels. Turnaround times for individual missions outside Ireland and the UK are omitted as these will vary for each individual mission and are dependent on local postal services. Turnaround times are among a number of Key Performance Indicators (KPIs) by which the Passport Service measures its success in delivering a modern and responsive public service.
|
Type of Passport Application |
Average Turnaround Times |
|
Online passport application service |
8 working days |
|
Online child passport application |
10 working days |
|
An Post Passport Express renewal application |
15 working days |
|
An Post Passport Express first time application & application to replace lost/stolen/damaged passport |
15 working days |
|
Northern Ireland Passport Express renewal applications |
11 working days |
|
Northern Ireland Passport Express first time application & application to replace lost/stolen/damaged passport |
21 working days |
|
London Passport Office renewal application |
20 working days |
|
London Passport Office first time application & application to replace lost/stolen/damaged passport |
30 working days |
|
Great Britain Passport Express |
13 working days |
All application categories are meeting or exceeding their target turnaround timeframe with the exception of Northern Ireland Passport Express, first time applications, which is one day under target.
The Passport Service is currently processing over 40,000 passport applications. These applications are going through the normal checking, processing and security stages.
134. Deputy Pearse Doherty asked the Minister for Finance if the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2018 will regulate a company (details supplied); if securitisations similar to that in a bank will regulate the owners of the credit; and if he will make a statement on the matter. [52741/18]
Amharc ar fhreagraThe Bill to which the Deputy refers is a Private Member's Bill, which is being supported by the Government. It has not yet completed its passage through the Seanad.
Responsibility for the implementation of the Bill, when enacted, will be a matter for the Central Bank of Ireland. How the legislation would operate in relation to a specific company will depend on exactly how the company operates. The Bill provides for three newly regulated activities:
- holding legal title to credit granted under the credit agreement;
- determination of the overall strategy for the management and administration of a portfolio of credit agreements; and
- maintenance of control over key decisions relating to such portfolio.
If any entity undertakes any of these activities after the enactment of the Bill, then it will require to be regulated by the Central Bank.
135. Deputy Michael McGrath asked the Minister for Finance the number of insurance providers, intermediaries or managing general agents providing insurance to persons here, operating under freedom of service, who have at one time not met their solvency capital requirements under the Solvency II directive; if the attention of the Central Bank is drawn to cases in which insurance providers prudentially regulated in other EU countries have not met their solvency capital requirements; and if he will make a statement on the matter. [52747/18]
Amharc ar fhreagraAt the outset I would like to say that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation, and have no role in the day to day supervision of insurance companies. I have therefore consulted with the Central Bank on the matters raised by the Deputy.
The Central Bank has informed me that, as at 6 December 2018, 175 life insurance undertakings and 876 non-life insurance undertakings are notified to operate in Ireland on freedom of services basis. The Solvency II Directive, which entered into force 1 January 2016 sets out new, more comprehensive EU-wide requirements on capital adequacy and risk management for insurers with the key aim of increasing policyholder protection. All insurance undertakings across the European Union must comply with the requirements of the Directive (with certain limited exceptions). However, Solvency II does not apply to intermediaries or managing general agents who are authorised and supervised under the European Communities (Insurance Distribution) Regulations 2018, which transpose the Insurance Distribution Directive.
Where an insurer, or insurance intermediary authorised in another Member State operates in Ireland through a branch or under the freedom to provide services ("passporting"), prudential supervision is the responsibility of the supervisory authority of the Member State which authorised the insurer. However, where such an insurer or insurance intermediary offers its products to Irish consumers, it is subject to the consumer protection regulatory framework in Ireland.
In relation to the question of the number of insurers operating on a freedom of service basis who have at one time not met their solvency requirements, the Central Bank has indicated that in accordance with Section 33AK of the Central Bank Acts, it is prohibited from sharing information about individual regulatory relationships. Therefore I am not in a position to provide this information to the Deputy. However, the Central Bank has advised me that they actively engage with EIOPA and other national supervisory authorities in accordance with the Solvency II Directive.
Furthermore, in 2017, EIOPA (the pan-European authority with responsibility for oversight of the insurance industry) developed a cross-border platform of cooperation between National Supervisory Authorities. This platform provides all National Supervisory Authorities with the opportunity to discuss concerns in relation to specific undertakings, local markets and share general market developments. The Central Bank has advised me that they participate fully in the platform with other relevant supervisory authorities.
136. Deputy Michael McGrath asked the Minister for Finance the member states in the EU and EEA that have insurance compensation mechanisms in place to pay claims in cases in which an insurance company fails; if those compensation mechanisms apply to claimants in other jurisdictions in which the failed company is operating under freedom of services; and if he will make a statement on the matter. [52748/18]
Amharc ar fhreagraAt the outset, the Deputy should note that currently there is no European harmonised framework of insurance guarantee schemes (IGSs) for the insurance sector. Member States have therefore adopted their own approach to such policyholder protection schemes, which show noticeable differences in design features, such as scope, coverage and funding. These differences in national IGSs, together with differences in insolvency laws, have led to a situation where policyholders across or even within the same Member States are not protected to the same extent in liquidation.
I understand, based on a report published from various sources including the European Insurance and Occupational Pension Authority (EIOPA) and the EU Commission, that there are, 26 IGSs (or similar schemes) established in 20 Member States: Austria, Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Malta, Norway, Poland, Portugal, Romania, Spain and the United Kingdom.
IGSs do not exist in the following EEA Member States: Croatia, Cyprus, the Czech Republic, Iceland, Liechtenstein, Lithuania, Luxembourg, Netherlands, Slovakia, Slovenia and Sweden.
Based on the available information, there are eight IGSs operating on the basis of the host-country principle, eight operating on the home-country principle and eight schemes with a combination of both. The remaining two schemes are undefined.
The host-country principle applies when the domestic IGS covers policies or risks in that state only; in other words those policies in relation to risks in the state in question issued by domestically authorised insurers and those sold by insurers authorised in another member state who are ‘passporting in’ to that state under freedom of establishment (branches) or freedom of services (FoS). The Irish Insurance Compensation Fund (ICF) is a host-based scheme.
The home-country principle applies when the domestic IGS covers policies issued by domestically authorised insurers sold in that state or in other member states via branches or FoS. The home-country principle does not require incoming insurers which operate via branches or FoS (inward FoS) to participate in the IGS.
EIOPA are currently working to develop proposals for harmonisation of IGSs across the EU/EEA. Officials from my Department and the Central Bank are working closely with their European-level counterparts on the issue.
A final point for the Deputy to note is that in its review of the Motor Insurance Directive, the European Commission has proposed requiring all Member States to establish an IGS to cover the cost of insolvent motor insurers, including on a cross-border basis. We support this measure and are actively participating to ensure that the legislation is strong and in the best interests of Ireland, given the large insurance industry here and our previous experience with insolvent inward-FoS insurers.
137. Deputy Michael McGrath asked the Minister for Finance the number of unrated insurance companies operating here; the number of those that are regulated here prudentially; the number regulated here under freedom of services; and if he will make a statement on the matter. [52749/18]
Amharc ar fhreagraAt the outset I would like to say that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation, and have no role in the day to day supervision of insurance companies. I have therefore consulted with the Central Bank on the matters raised by the Deputy.
The Central Bank has advised me that the data sought by the Deputy regarding the credit rating attached to all insurance and reinsurance firms operating in Ireland is not available to it.
It has also indicated that as at 31 December 2017, there were 1,166 life and non-life insurance firms licensed or notified to operate in Ireland as follows:
|
Firm Type |
Number |
Firm Type |
Number |
|
Life - Central Bank Authorised |
46 |
Non-Life - Central Bank Authorised |
99 |
|
Life - Freedom of Services |
174 |
Non-Life - Freedom of Services |
804 |
|
Life - Freedom of Establishment |
12 |
Non-Life - Freedom of Establishment |
31 |
|
Total Life: |
232 |
Total Non-Life: |
934 |
However, it should be noted that not all of these firms operate in the Irish market. The breakdown of the firms writing business in Ireland at 31 December 2017 was as follows:
|
- |
Life |
Non-Life |
Composites (Both Life and Non-Life) |
|
Central Bank Authorised |
46 |
99 |
0 |
|
Freedom of Services |
15 |
117 |
19 |
|
Freedom of Establishment |
7 |
10 |
3 |
|
Freedom of Services and Freedom of Establishment |
0 |
18 |
2 |
|
Total |
68 |
244 |
24 |
The Central Bank has informed my Department that these figures have been taken from an EIOPA database.
Finally, the Deputy should note that the European Insurance and Occupational Pension Authority (EIOPA) in 2017 developed a cross-border platform of cooperation between National Competent Authorities (NCA’s) to provide all NCA’s with the opportunity to discuss concerns in relation to specific undertakings, local markets and share general market developments. The Central Bank has advised me that they participate fully in the platform with other relevant supervisory authorities.
138. Deputy Billy Kelleher asked the Minister for Finance the amount expended on travel costs associated with all official Department engagements, that is, overseas flights, accommodation and taxis undertaken by him and each respective Minister of State in 2017 and 2018, in tabular form. [52816/18]
Amharc ar fhreagraIn the time available, it has not been possible to compile all the information sought by the Deputy.
However, my officials are continuing to assemble relevant details and I will forward the information to the Deputy as soon as the task is completed.
139. Deputy Bríd Smith asked the Minister for Finance if his attention has been drawn to the fact that the removal of height restrictions has a major upward impact on site value of the lands sold and that the price obtained for the land disposed of by NAMA recently is thus considerably less than could have been obtained; and if he discussed the likely impacts with NAMA officials before it disposed of lands. [52841/18]
Amharc ar fhreagra140. Deputy Bríd Smith asked the Minister for Finance if NAMA had been informed of the forthcoming changed height regulations but continued to completion with such sales; if so, the reason NAMA was permitted to dispose of such sites at considerable discount to its subsequent revaluation; and if he was advised of these sales and disposals prior to the announcement on height restrictions. [52842/18]
Amharc ar fhreagra141. Deputy Bríd Smith asked the Minister for Finance if he discussed the likely impact on land prices, and specifically NAMA-controlled sites, of the measures on height restrictions with either the Minister for Housing, Planning and Local Government or officials in his Department or outside agencies or bodies; and the details of discussions and meetings that took place at which these height restrictions were discussed. [52843/18]
Amharc ar fhreagraI propose to take Questions Nos. 139 to 141, inclusive, together.
Earlier this month the Department of Housing, Planning and Local Government (DHPLG) published guidelines for planning authorities entitled “Urban Development and Building Heights” available at: Urban development and building height guidelines
Responsibility for issuing those guidelines is the exclusive competence of the Minister for Housing, Planning and Local Government, as outlined in section 28 of the Planning and Development Act 2000. I wish to advise the Deputy that no discussions concerning these guidelines took place between me and the Minister for Housing, Planning and Local Government or between the Department of Finance and outside agencies, either generally or in relation to the price of land associated with NAMA.
Furthermore, NAMA did not have any involvement in the drafting of the new planning guidelines for building heights, nor was it consulted by DHPLG prior to their publication.
The Deputy will be aware that Section 9 of the NAMA Act provides that NAMA is independent in the performance of its functions and that I, as Minister, have no role in relation to its commercial operations or decisions. I wish to advise that I did not discuss the impact of the removal of height restrictions with NAMA. Nor did I discuss with NAMA any plans that its debtors and receivers may have had to dispose of particular assets. Under State aid rules, NAMA’s debtors and receivers operate in the same manner as, and in competition with, other commercial market participants and therefore there is no question of NAMA debtors and receivers being provided with advance notice of proposed Government initiatives when such information is not available to the market in general.
I am advised that NAMA did not have any involvement in the drafting of the new planning guidelines for building heights, nor was it consulted by the Department of Housing, Planning and Local Government (DHPLG) prior to their publication. NAMA became aware of the draft guidelines in August 2018 when they were published by the DHPLG for public consultation. The finalised guidelines were published in December 2018. I wish to point out to the Deputy that decisions in relation to the disposal of properties are a matter for NAMA’s debtors and receivers, acting with the approval of NAMA as secured lender. I am advised that the timing of such disposals is influenced by a range of factors, including current and prospective market conditions, the level of demand for the asset types involved and the availability and cost of finance to potential purchasers.
It is my understanding that the new planning guidelines do not imply that objectives within SDZ Planning Schemes will necessarily change nor do they imply a blanket lifting of height guidance. Rather, I understand that the guidelines are intended to provide direction to local authorities and An Bord Pleanála on the assessment of planning applications for residential and commercial proposals, subject to specific planning criteria.
As regards the sale of a NAMA-secured site mentioned by the Deputy in the Dáil, which was openly marketed as Block 3 in the Docklands, I am advised that the sale completed at end-July 2018 prior to the issuance of the draft guidelines by the DHPLG in August.
With regard to sites secured to NAMA which have not yet been sold, I am advised that NAMA will work closely with its debtors and receivers in order to ensure that the potential impact of these guidelines is fully considered when devising strategies for the sites.
142. Deputy Lisa Chambers asked the Minister for Finance the status of plans to hire customs officials due to the impact of Brexit; the number of officials expected to be hired; the number expected to be fully trained and in place as of 29 March 2019; the date by which all new hired personnel will be in place; his plans to expedite this process as a result of the decision by Prime Minister May of the United Kingdom to defer the vote on the withdrawal agreement; and if he will make a statement on the matter. [52892/18]
Amharc ar fhreagra144. Deputy Seán Haughey asked the Minister for Finance the number of new customs officers who have been recruited in recent months to deal with Brexit; if these positions were advertised; the procedures used for the recruitment process; the way in which the successful candidates were selected; if the new customs officers will require training; and if he will make a statement on the matter. [52970/18]
Amharc ar fhreagraI propose to take Questions Nos. 142 and 144 together.
I am advised by Revenue that they will require an additional 600 staff as a result of Brexit. This is based on the central case scenario of an orderly withdrawal, to include a transition period to the end of 2020, followed by an agreed future trading relationship between the EU and the UK. I am advised that Revenue’s preparations are focused on facilitating trade on an East West basis.
The Government approved the phased recruitment of 600 Revenue staff in September this year. Budget 2019 provides Revenue with an additional €10 million pay provision for 270 staff for Brexit, for facilitation of trade and support of businesses and trade by Revenue in processing of applications for a range of simplifications available under the Union Customs Code (UCC) that will assist businesses in mitigating some of the challenges arising from Brexit.
Since September 2018, Revenue has assigned 43 additional trade facilitation staff and plans are well advanced to have a total of 200 additional staff, across a number of functions, trained and in place by 29 March 2019. These posts are being filled from open, interdepartmental and internal Revenue competitions. An open recruitment campaign for trade facilitation roles was undertaken by the Public Appointments Service (PAS) and attracted more than 3,000 applications. This competition was advertised on the PAS website (publicjobs.ie) and also on the Revenue website to ensure that recruitment is from the widest pool of available talent and experience. Revenue also held 6 internal competitions for existing Revenue staff at Higher Executive Officer, Executive Officer and Clerical Officer level for assignment to trade facilitation roles in Dublin Port and Airport and Rosslare. Candidates were selected using methodologies such as on-line testing and competitive interviews to facilitate the identification of the best people for the posts. Recruitment for appointment to positions in Revenue is subject to the provisions of the Public Service Management (Recruitment and Appointments) Act, 2004 and is regulated by the Commission for Public Service Appointments (CPSA) and subject to the CPSA Codes of Practice.
The additional 200 staff, the majority of whom will be working on a 24 hour/7-day week basis, will bring the total number of fully operational trade facilitation staff to over 300 by the end of the first quarter of 2019 as there were already c.100 in place at September 2018.
It is planned to recruit the balance of 70 staff provided for in Budget 2019 during the period March 2019 to December 2019. Revenue expect, in the context of the central case scenario, that they will require the additional 330 staff to be in position by the end of the transition period in 2020, and are engaged with the PAS in this regard.
In line with the ‘whole of Government’ approach to Brexit, we continue to prepare for the UK’s exit. The European Council has asked for work at national and EU level to intensify, taking account of all possible outcomes. Therefore in the event of the UK leaving without an agreement, 200 staff will be trained and in place by 29 March 2019. However accelerated recruitment of the remaining 400 staff will be required and it is intended to manage this by way of interdepartmental and open recruitment and the redeployment of existing Revenue staff, if necessary.
143. Deputy Lisa Chambers asked the Minister for Finance the number of companies that have applied for authorised economic operator status in each of the years 2015 to 2017, and to date in 2018; the number in tabular form that have been granted; and if he will make a statement on the matter. [52893/18]
Amharc ar fhreagraThe Authorised Economic Operator (AEO) programme, which aims to enhance international supply chain security and to facilitate legitimate trade, is open to all supply chain actors. There is no legal obligation for economic operators to become an AEO, it is a matter of choice for each operator based on their individual circumstances.
I am advised by Revenue that 155 economic operators have been granted AEO status in Ireland. In 2018, 23 of the 35 applications for AEO status have been received by Revenue in the second half of the year and it is anticipated that further applications will be received in 2019.
The table below outlines the number of applications and issued authorisations for 2015 to 2017 and those received and processed to date in 2018.
|
Year |
AEO Applications |
AEO Authorisations Granted |
|
2015 |
7 |
9 |
|
2016 |
13 |
10 |
|
2017 |
16 |
17 |
|
2018 (to 12th of December 2018) |
35 |
20 |
145. Deputy Michael McGrath asked the Minister for Finance the number of life loans in respect of residential properties in issuance here; the amount owed on these loans; if such loans are being marketed by banks; if he is satisfied that consumers are being made fully aware of the risk associated with a life loan; and if he will make a statement on the matter. [53012/18]
Amharc ar fhreagraAs I stated in reply to a parliamentary question on 17 April this year the Central Bank has advised me that it does not publish figures on lifetime loans. These are niche products, usually provided to those aged 60 or older. The Consumer Protection Code 2012 defines ‘lifetime mortgage’ as - “a loan secured on a borrower’s home where:
a) interest payments are rolled up on top of the capital throughout the term of the loan;
b) the loan is repaid from the proceeds of the sale of the property; and
c) the borrower retains ownership of their home whilst living in it; “
Currently the Central Bank is not aware of any banks marketing lifetime mortgages.
On the issue more generally, as part of the Central Bank's ongoing supervisory work, the bank carried out some work in respect of ‘Lifetime’ loans in 2016. Based on information from lenders (which represented the majority of the market at the time), there were loans of approximately €640 million to approximately 5,000 customers outstanding.
If a regulated entity wishes to engage in the provision of lifetime mortgages, the Central Bank requires that transparency is provided to the borrower at the outset and borrowers must be treated in accordance with the Central Bank’s Consumer Protection Code 2012 (the Code). The Code requires that prior to offering, recommending, arranging or providing a lifetime mortgage to a consumer, a regulated entity must inform the consumer of the consequences of purchasing a lifetime mortgage and provide information on;
- the circumstances in which the loan will have to be repaid
- details of the interest rate that will be charged
- an explanation of the impact of the rolling up of the interest over the duration of the loan
- an indication of the amount required to repay the loan at maturity
- the effect on the existing mortgage, if any; and
- an indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan at five yearly intervals thereafter.
Prior to offering, recommending, arranging or providing a lifetime mortgage to a personal consumer, a regulated entity must also ensure that the personal consumer is made aware of the importance of seeking independent legal advice regarding the proposed transaction.
A regulated entity must also include prescribed warning statements on the following, where they contain information regarding a lifetime mortgage:
- an application form;
- any other document provided to the personal consumer; and
- on its website.
The Consumer Protection Code 2012 also requires, at least annually, the provision of a statement of account including the opening balance, all transactions, all interest charged, all charges, the outstanding balance and details of the interest rate(s) applied to the account during the period covered by the statement.
146. Deputy Catherine Murphy asked the Minister for Finance if staff at the State Claims Agency receive discretionary performance-related payments; the amount paid to staff from 2006 to date; if these payments related to particular projects and-or audits; and if he will make a statement on the matter. [53022/18]
Amharc ar fhreagraWhen performing its statutory functions regarding claims against the State, the National Treasury Management Agency is known as the State Claims Agency. The NTMA has informed me that discretionary performance-related payments are intended to reward exceptional performance having regard to the employee’s own performance, the performance of the employee’s area of responsibility, and the overall performance of the NTMA. Performance related payments are made in accordance with parameters approved by the Agency’s non-executive Remuneration Committee.
The NTMA have also informed me that it provides details of performance related payments made each year to all NTMA staff in its annual reports which are available on the NTMAs website through the following link www.ntma.ie/publications/.
147. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding tax on non-alcoholic drinks; and if he will make a statement on the matter. [53060/18]
Amharc ar fhreagraExcise duty on beer is charged based on the percentage, by volume, of alcohol in the beverage. Typically, the excise duty on a pint of beer is 54 cent. On the other hand non-alcoholic beer is not liable to any excise duty.
The price of non-alcoholic beers is determined by retailers and publicans and this should reflect the fact that no excise applies to such products as well as other factors.
I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. In accordance with the Value-Added Consolidation Act, 2010 the supply of non-alcoholic drinks is generally liable to tax at the standard rate of 23%.
148. Deputy Lisa Chambers asked the Minister for Finance if he will report on recent discussions and meetings he has had with officials from the Central Bank regarding Brexit and the resilience of the economy to withstand a no-deal Brexit; and if he will make a statement on the matter. [53074/18]
Amharc ar fhreagraI, and my officials, have regular meetings and discussions with officials from the Central Bank of Ireland, in which Brexit is a regular topic. This engagement has enabled myself as Minister and my Department to ensure that full account of the impact of a hard Brexit is being taken into account.
The Central Bank has statutory responsibility for financial stability. It has been working on Brexit related issues since before the UK Referendum. It is working to ensure that financial services firms are adequately prepared to cope with the possible effects of Brexit, with as little disruption for consumers as possible. This work is being done on the basis of plausible worst-case scenarios. The Central Bank will continue to work with financial services firms and actively engage in constructive fora.
In terms of my Department’s engagement with the Central Bank;
- Brexit has been a standing item on every meeting this year of the Financial Stability Group (FSG), which comprises the senior management of the Department of Finance, the Central Bank and the NTMA.
- In order to further co-ordination and co-operation on Brexit issues, the FSG established a Brexit Contact Group (BCG), which has met 10 times this year. The BCG consists of officials from relevant areas of the FSG agencies, provides a vital forum for sharing information on Brexit-related financial services issues and for providing me with detailed information on these matters.
- The FSG also established a sub-group to deal with the particular issue of a Central Securities Depository, which is an important piece of Post Trade Market Infrastructure. The Department of Finance and the Central Bank are continuing to engage with Euronext (formally the Irish Stock Exchange) and other relevant stakeholders including European Authorities to ensure that a settlement solution, that minimises disruption to the Irish market post-Brexit, is found. This remains a priority.
Furthermore, the Department has been working to ensure that the Irish economy is in a good state of resilience to withstand a No-deal Brexit. Over recent years, Ireland has laid the foundations for a solid and sustained economic recovery. Indicators such as consumer spending and labour market developments are consistent with an economy that is maintaining momentum.
Since the UK referendum in 2016, all of our national Budgets have been framed to prepare for the challenge of Brexit. The economic and fiscal policies which we have pursued have placed Ireland in a stronger position to ensure that the economy will continue to remain competitive in the face of future economic headwinds.
Budget 2019 continued the overall approach of prudent financial management to strengthen the resilience of Ireland’s economy against the backdrop of heightened uncertainty, including from Brexit, including through:
- eliminating the headline deficit;
- achieving the medium-term budgetary objective;
- building up the Rainy Day Fund;
- reducing the debt burden;
- investing in infrastructure to boost competitiveness and productivity; and
- investing in education.
The focus of Government budgetary policy is on having the appropriate fiscal stance. This is not measured on the basis of what is legally permissible within the fiscal rules but on what is right for the economy at this point in the cycle.
From a budgetary perspective, this facilitates the building-up of fiscal capacity which can help mitigate against future negative risks and potential shocks.
In an increasingly unpredictable external environment, continued fiscal sustainability remains a priority. Specifically, it is currently projected that Ireland will achieve its medium-term budgetary objective of a balanced budget in 2019.
149. Deputy Lisa Chambers asked the Minister for Finance if his Department has conducted new analyses in recent months of the impact on a hard and no-deal Brexit on the economy, growth and employment; if so, the findings of the most recent analysis; and if he will make a statement on the matter. [53075/18]
Amharc ar fhreagraThe Government has always been clear that Brexit, in whatever form it takes, will have a negative economic impact on Ireland. Indeed, the Department of Finance has been to the forefront in assessing the impact of Brexit on our economy – commissioning joint research with the ESRI on the issue, including before the actual referendum. What is clear from this research, and other studies, is that the harder the Brexit the more negative the impact for Ireland.
My Department’s forecasts underlying Budget 2019, published in October, incorporate, as a central scenario, that the UK will make an ‘orderly’ exit from the EU. This central scenario involves a transition period being agreed that extends or replicates existing frameworks until end-2020, i.e. the UK is assumed to remain in the single market and customs union during this period. From 2021 onwards, the baseline forecasts assume that the EU and UK will conclude a free trade agreement.
My Department has also recognised the risk of a disorderly Brexit and has, therefore, set out an assessment of the potential economic impact of Brexit of the central (‘orderly’ exit) scenario and an alternative (‘disorderly’) exit scenario.
i. Central scenario = Orderly exit: transition period followed by a Free Trade Area (FTA);
ii. Disorderly exit = Exit of the UK without a transition period or trade agreement -WTO arrangements apply with immediate effect.
The results of this analysis are outlined in the Budget 2019 Economic and Fiscal Outlook. The analysis shows that over the medium-term (i.e. after five years), under the central scenario, which is incorporated in the forecasts, the level of Irish output would be close to 2 per cent below what would be the case under a no Brexit situation. Under the ‘disorderly’ exit scenario, the level of Irish output would be around 3¼ per cent lower than under the no Brexit situation.
This analysis explicitly recognises that these estimates may not capture the full impact and that they are more a minimum than a maximum. It also highlights that in the event of a disorderly Brexit, there would be further negative material impacts on Ireland, particularly in the early years, arising from issues such as regulatory divergence along with significant market volatility, further sterling depreciation, and disruption to trade with the UK. Further, these impacts would be have a disproportionate impact on Ireland relative to the rest of the EU.
Analysis carried out jointly by my Department and the ESRI has shown that, over the long-term (i.e. after ten years) in a no-deal Brexit scenario, the level of output would be almost 4 per cent below what it otherwise would have been in a no-Brexit scenario. The level of employment in Ireland would be 2 per cent lower, with the unemployment rate nearly 2 percentage points higher.
I note that a number of assessments of the economic impact of Brexit on the UK were published last month. Overall, these assessments find that Brexit will have a more negative economic impact on the UK than previously assumed. It is not unreasonable to expect a commensurate impact on Ireland. In this context, my Department is currently updating its analysis of the impact of Brexit on Ireland.
While it is still Government’s view that a ‘no deal’ outcome remains unlikely, we are planning for all scenarios. It is imperative to boost the resilience of the Irish economy in order to minimise, in so far as is possible, any future disruption. Since the UK referendum in 2016, all of our national Budgets have been framed to prepare for the challenge of Brexit. The economic and fiscal policies, which we have pursued, mean that the economy is now in a better position to weather the impacts of Brexit.
150. Deputy Michael McGrath asked the Minister for Finance if sports clubs that are registered charities can benefit from the VAT compensation scheme; and if he will make a statement on the matter. [53122/18]
Amharc ar fhreagraThe VAT Compensation Scheme for Charities has effect from 1 January 2018 but will be paid one year in arrears - in 2019, charities will be able to submit claims in respect of the VAT paid in 2018. To benefit from the scheme, a sports club must be registered with the Revenue Commissioners, hold a charitable tax exemption (CHY) under Section 207 Taxes Consolidation Act (TCA) 1997 and be registered with the Charities Regulatory Authority (CRA).
Bodies established for the promotion of athletic or amateur games or sports are normally granted tax exemption under Section 235 Taxes Consolidation Act (TCA) 1997 and this being the case may not be eligible to claim under the VAT Compensation Scheme.
Guidance Notes on the VAT Compensation Scheme will be published shortly.
151. Deputy Thomas Pringle asked the Minister for Finance the way in which employees who do not have Internet access will be able to access end-of-year statements once changes by the Revenue Commissioners are carried out by 2020 and the P60 and P45 forms are no longer in use; and if he will make a statement on the matter. [53242/18]
Amharc ar fhreagraI am advised by Revenue that the P60 and P45 forms are important components of the current PAYE system. The P60 is a statement of the employee’s earnings and statutory deductions for a year while the P45 sets out earnings and statutory deductions when an employment is ceased.
With effect from 1 January 2019 the administration of PAYE is undergoing significant change with the move to real-time reporting under the PAYE Modernisation programme. These changes will bring improved accuracy and transparency for all stakeholders, including employers, employees and Revenue, while also significantly streamlining the entire administration process. The streamlining will include the abolition of the current employer reporting obligations via P30, P35, P45, P46 and P60 forms.
Under the new reporting arrangements, the P60 form will be replaced by an online End of Year Statement, which will be available in early 2020 (in respect of the 2019 tax year) and will detail the employee’s pay and deductions, including credits and reliefs etc. Similarly, there will be no need for an employer to provide an employee with a P45 form because the pay and tax details and date of leaving will be included in the (employer) payroll submission. This information will then be automatically updated by Revenue to the employee’s record. The real-time information will also be made available to the Department of Employment Affairs and Social Protection (DEASP) for processing benefit claims.
In circumstances where a person is unable to access Revenue’s online services for whatever reason, s/he will be able to request hard copy details of the required information by contacting Revenue directly. Finally, I am aware that Revenue has very actively communicated the changes associated with PAYE Modernisation, including in respect of the P60 and P45 Forms. Further information in this regard is available at www.revenue.ie/en/jobs-and-pensions/paye-modernisation-for-employees/index.aspx which may be of interest to the Deputy.
152. Deputy Bobby Aylward asked the Minister for Finance if he is satisfied that the Revenue Commissioners have sufficient measures in place to ensure that applicants who engage in the process of taxing commercial vehicles are subject to a stringent assessment process; his views on the efforts and practices of the Revenue Commissioners' district offices to ensure that vehicles are not being unlawfully taxed as commercial vehicles; and if he will make a statement on the matter. [53256/18]
Amharc ar fhreagraI am informed by Revenue that all vehicles are registered under the provisions of Part II, Chapter IV, Finance Act 1992. Registrations are carried out based on the documentation presented at the time of registration. This documentation includes the EU Classification of the vehicle and, depending on this classification, a vehicle is categorised as a VRT Category A (passenger cars and certain SUVs), Category B (light commercials and motor caravans) or Category C (heavy commercials and buses). Once the documentary process and the assignment of vehicles to categories is complete, a vehicle can be registered.
I am further informed by Revenue that there are regular and effective compliance and enforcement programmes in place to ensure compliance with the legislation in respect of registration and collection of VRT and VAT.
Administration of motor tax is the responsibility of the Department of Transport, Tourism and Sport.
