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Thursday, 14 Feb 2019

Written Answers Nos. 49-65

Consultancy Contracts Expenditure

Ceisteanna (49)

Mattie McGrath

Ceist:

49. Deputy Mattie McGrath asked the Taoiseach and Minister for Defence the expenditure details for all consultancy or audit services provided to his Department by a company (details supplied) from 2015 to 2018, inclusive, and to date in 2019; and if he will make a statement on the matter. [7559/19]

Amharc ar fhreagra

Freagraí scríofa

No consultancy or audit services were provided to my Department by the company referred to by the Deputy, from 2015 to 2018 and to date in 2019.

Capital Expenditure Programme

Ceisteanna (50)

Jonathan O'Brien

Ceist:

50. Deputy Jonathan O'Brien asked the Taoiseach and Minister for Defence the capital projects completed by his Department since 2011; the initial contract value of same; the final cost of same; and the final cost of the capital projects that have had an ex post review in tabular form. [7847/19]

Amharc ar fhreagra

Freagraí scríofa

There has been one capital project with a value in excess of €10 million completed by my Department since 2011, the Naval Vessel Replacement Programme.

A contract was placed with Babcock International in 2010 for the purchase of two Offshore Patrol Vessels at a contract price of €132.2m. The final cost of these vessels was €133.51m. This contract also included the option of the purchase of a third ship at a contract price of €67.16m. This option was exercised in 2014 and the final cost of this purchase was €68.48m. The first new Offshore Patrol Vessel (OPV), LÉ Samuel Beckett was delivered by Babcock International from their Appledore yard in the UK in April 2014. The second ship, LÉ James Joyce was delivered in July 2015. The third ship LÉ William Butler Yeats was delivered in July 2016.

In 2016, a contract for the purchase of a fourth ship under this programme was put in place with Babcock International, at the contract price of €66.79m. The final cost of this contract was €68.14m.

All above figures are inclusive of VAT. The minor variations between the contract price and the final cost for these Naval Vessels were agreed based on the following:

- Fuels and lubricants on board the vessels at handover;

- Training, manuals and publications provided;

- Spare parts provided with the vessel;

- Additional agreed works including works to bringing all vessels in line with revised Ship Classification requirements.

A number of further significant, multi-annual, capital projects are currently underway as part of the investment in Defence under the National Development Plan. This investment provides for a programme of sustained equipment replacement and infrastructural development as identified and prioritised in the White Paper.

Military Aircraft Landings

Ceisteanna (51)

Clare Daly

Ceist:

51. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade if advance notice was given to his Department of the transit of an aircraft (details supplied) through Shannon Airport on 4 February 2019 in view of the fact that the aircraft was en route to a location that may have implications for the international reputation and foreign policy of Ireland. [7459/19]

Amharc ar fhreagra

Freagraí scríofa

Under the Air Navigation (Carriage of War, Weapons and dangerous Goods) Order 1973, as amended, civil aircraft are prohibited from carrying weapons or munitions in Irish sovereign airspace or into Irish airports unless they receive an exemption from the Minister for Transport.

In considering such applications, the Department of Transport, Tourism and Sport seeks the advice of relevant Government Departments, including the Department of Foreign Affairs and Trade. The final decision with respect to the granting of such an exemption rests with the Department of Transport, Tourism and Sport.

Consistent with our stated policy my Department recommends against the carriage of munitions, with exceptions made for unloaded personal weapons or those intended for international crisis management and peace support operations.

Regarding the civil aircraft detailed in this instance, my Department was asked for and duly provided its observations in accordance with that policy.

Consultancy Contracts Expenditure

Ceisteanna (52)

Mattie McGrath

Ceist:

52. Deputy Mattie McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the expenditure details for all consultancy or audit services provided to his Department by a company (details supplied) from 2015 to 2018, inclusive, and to date in 2019; and if he will make a statement on the matter. [7563/19]

Amharc ar fhreagra

Freagraí scríofa

My Department has not engaged the named consultancy firm to perform work from 2015 to date and no expenditure has been incurred during this period.

Brexit Issues

Ceisteanna (53)

Brendan Smith

Ceist:

53. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on recent comments by the Committee on the Administration of Justice regarding the rights of persons in Northern Ireland claiming Irish citizenship after Brexit following a reply by the British immigration Minister regarding the rights of persons to Irish or British citizenship under the Good Friday Agreement; if in all Brexit-related discussions there will be a diminution of such rights; and if he will make a statement on the matter. [7597/19]

Amharc ar fhreagra

Freagraí scríofa

The Government has noted the statement by the UK Minister of State for Immigration Caroline Nokes MP on 5 February and is aware of the concerns raised by the Committee on the Administration of Justice in this regard.

The Government has noted and welcomes that Prime Minister May acknowledged in her speech in Belfast on 5 February that there have been serious concerns raised about how UK immigration rules treat citizens exercising their right under the Good Friday Agreement to be Irish and that, in some cases, people have encountered difficulties in securing their rights as Irish citizens to bring family members to reside. The British Prime Minister expressed understanding of the concerns raised and underlined that "the birth right to identify and be accepted as British, Irish or both" and the right to hold both British and Irish citizenship “is absolutely central to the Agreement”. Prime Minister May said that she has asked the Home Secretary and Secretary of State for Northern Ireland to “review the issues around citizenship urgently to deliver a long term solution consistent with the letter and spirit” of the Good Friday Agreement.

These are welcome commitments and acknowledgements by Prime Minister May. Last year, I raised with the Secretary of State for Northern Ireland the need for the citizenship and identity provisions of the Good Friday Agreement to be fully taken account of in all relevant policy areas, and there has been ongoing engagement between our officials, including through the British-Irish Intergovernmental Secretariat. The Government will continue to engage with the UK Government as a co-guarantor of the Good Friday Agreement on this important issue.

In relation to Brexit, the Protocol on Ireland/Northern Ireland that is an integral part of the Agreement on the Withdrawal of the UK from the EU, and which has been endorsed by the European Council and agreed with the UK Government, confirms the Union citizenship of Irish citizens in Northern Ireland. As Union citizens, Irish citizens in Northern Ireland will continue to enjoy the right to move and reside freely throughout the EU, benefitting from the important right not to be discriminated against on the grounds of nationality while doing so. The Protocol also confirms that Irish citizens in Northern Ireland, “will continue to enjoy, exercise and have access to rights, opportunities and benefits” that come with EU citizenship.

Further engagement is needed on which EU rights, opportunities or benefits can be exercised by the people of Northern Ireland who are Irish and therefore EU citizens, when they are resident in Northern Ireland, which will be outside the territory of the European Union after the UK departure. The negotiations on the future relationship of the UK with the European Union will be an important factor in this regard. There is an onus on the UK Government to protect the Good Friday Agreement in all its parts in any scenario and it should ensure relevant issues, including possible future UK participation in EU funds and programmes, are part of its detailed position and pursued in the discussions on the EU-UK future relationship.

The Political Declaration setting out the framework for the future relationship between the European Union and the UK that was agreed on 25 November last also includes important references with regard to cooperation between the European Union and the UK in relevant areas and it affirms the commitment of the Union and the UK that the Good Friday Agreement “must be protected in all its parts, and that this extends to the practical application of the 1998 Agreement on the island of Ireland and to the totality of the relationships set out in the 1998 Agreement.”

The Government remains firmly of the view that the only way to ensure an orderly withdrawal is to ratify the Withdrawal Agreement as endorsed by the European Council and agreed with the UK Government.

The Government will continue to proactively engage to ensure that people in Northern Ireland continue to enjoy access to EU rights, opportunities, and benefits in to the future. Under any scenario for the UK’s exit from the European Union, the obligations and commitments of the Irish and UK Governments under the Good Friday Agreement remain and the Government will continue to work with the UK Government as co-guarantor to secure the full implementation of the Agreement.

Stamp Duty

Ceisteanna (54)

Charlie McConalogue

Ceist:

54. Deputy Charlie McConalogue asked the Minister for Finance if a farm restructuring and completion agreement that was completed in August 2018 would qualify for a stamp duty rebate; if so, the process involved; and if he will make a statement on the matter. [7431/19]

Amharc ar fhreagra

Freagraí scríofa

I assume the Deputy is referring to the measure introduced in Finance Act 2017 to allow a farmer to claim relief from stamp duty where he or she both sells and purchases land for the purposes of consolidating an existing farm holding. Although this measure was not commenced until 1 August 2018 by Ministerial Order, it applies to all qualifying transactions that took place on or after 1 January 2018.

There are a number of conditions that must be satisfied for the relief to apply. There must be both a sale and a purchase of land within a period of 24 months of each other. Where other qualifying conditions are satisfied, stamp duty is chargeable only to the extent that the value of the land that is purchased exceeds the value of the land that is sold. A reduced rate of 1% is charged on the excess, if any, of the purchase value.

An important condition for the relief is that Teagasc must issue a certificate stating that a sale and purchase (or an exchange of farmland) was made for farm consolidation purposes. The criteria to be used by Teagasc for this purpose and the information to be supplied to Teagasc are contained in guidelines published by the Minister for Agriculture, Food and the Marine. Following the farm consolidation, a farmer must retain ownership of the farmland for a period of five years and must use the land for farming. Where any part of the land is disposed of before the end of this five-year holding period, the stamp duty relieved can subsequently be recovered by Revenue, or partly recovered, as appropriate.

Where land was purchased before land was sold, or both transactions took place on or after 1 January and before 1 August 2018, and stamp duty at the rate of 6% was paid on the purchase value, eligible farmers may claim a refund from Revenue. A refund claim is to be made on a self-assessment basis where the qualifying conditions for the relief are satisfied.

An amended stamp duty return should be filed through Revenue’s online system (ROS) and the relief claimed on the return. Information on how to amend a return is contained on the Revenue website. Following the filing of the amended return, a refund claim should be made in writing to Revenue. The claim should set out the basis for the refund and include:

- a certified copy of the deeds effecting the sale by the farmer and the purchase by the farmer;

- a valid Teagasc certificate; and

- a written declaration by the purchaser confirming that it is the intention of each person to retain ownership of his or her interest in the qualifying land and use the qualifying land for farming for a period of 5 years from the date on which the first claim for relief (including a refund claim) is made in respect of the qualifying land.

The claim should quote the Document ID that is on the return.

National Treasury Management Agency Staff

Ceisteanna (55)

Jonathan O'Brien

Ceist:

55. Deputy Jonathan O'Brien asked the Minister for Finance the number of procurement officials within the NTMA charged with managing and overseeing public private partnerships; and the annual cost of same through salaries. [7548/19]

Amharc ar fhreagra

Freagraí scríofa

It was not possible for the National Treasury Management Agency to provide the information sought in the time available and, therefore, I will make arrangements to provide the information in line with Standing Orders.

Insurance Costs

Ceisteanna (56)

James Browne

Ceist:

56. Deputy James Browne asked the Minister for Finance his plans to address the high costs of insurance; and if he will make a statement on the matter. [7145/19]

Amharc ar fhreagra

Freagraí scríofa

At the outset, it is important to note that while I am very aware of the financial strain which the cost of insurance is placing upon some consumers and businesses, as Minister for Finance, neither I nor the Central Bank of Ireland has the power to direct insurers on the pricing or provision of insurance products. Indeed, the EU framework for insurance expressly prohibits Member States from adopting rules which require insurers to obtain prior approval of the pricing or terms and conditions of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurers and is based on an assessment of the risks they are willing to accept and requires adequate provisioning to meet those risks. These are considered by insurers on a case-by-case basis.

Notwithstanding the above, it was recognised with the establishment of the Cost of Insurance Working Group in July 2016 that the environment within which insurers conduct their business can be better shaped, in order to make the Irish insurance market a more competitive one and also to make it more attractive for new entrants. This Working Group, now chaired by the Minister of State for Financial Services and Insurance, Mr. Michael D’Arcy T.D., undertook an examination of the factors contributing to the increasing cost of insurance in order to identify what short, medium and long-term measures could be introduced to help reduce the cost of insurance for consumers and businesses.

The initial focus of the Working Group was the issue of rising motor insurance premiums and the Report on the Cost of Motor Insurance was published in January 2017. The Motor Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are set out in an Action Plan.

In its second phase, the Working Group examined the cost of business insurance, in particular employer liability insurance and public liability insurance. This work culminated in the publication of the Report on the Cost of Employer and Public Liability Insurance in January 2018. The EL & PL Report makes 15 recommendations with 29 associated actions, again to be carried out in agreed timeframes set out in an Action Plan.

The recommendations from these two primary Reports are often inter-related and overall represent an important part of the broader insurance reform agenda. Key recommendations in the two Reports seek to increase transparency in the sector, as well as to improve the personal injuries litigation framework and costs environment by encouraging greater use of the Personal Injuries Assessment Board and reviewing the level of damages in personal injury cases.

Work is ongoing on the implementation of the recommendations from the two Reports by the relevant Government Departments and Agencies and there is a commitment that the Working Group will prepare quarterly updates on its progress. The seventh such update was published in November 2018 and shows that of the total number of 78 separate relevant deadlines within the Action Plans of the two Reports set up to the end of Q3 2018, 63 relate to actions which have been completed.

Both of the primary Reports and the quarterly updates are available on the Department’s website.

The Deputy should note that the Cost of Insurance Working Group will continue to focus on putting into place the measures proposed in its two Reports. It is envisaged that the full implementation of all the recommendations from both Reports cumulatively, with the appropriate levels of commitment and cooperation from all relevant stakeholders, can achieve the objectives of delivering fairer premiums for consumers and businesses, and a more stable and competitive insurance market.

In this regard, it should be noted that the most recent CSO data (for December 2018) indicates that private motor insurance premiums have decreased by 22.16% since peaking in July 2016. While it is accepted that premiums are still at a high level for many people, such statistics indicate at least a greater degree of stability in the market on an overall basis.

Finally, it is expected that the next quarterly Progress Update will be completed by the end of this month and will concentrate in particular on outlining the definitive position in relation to all of the 33 recommendations from the Motor Report as the last of the deadlines within its Action Plan passed at the end of 2018.

Financial Services Regulation

Ceisteanna (57)

Aindrias Moynihan

Ceist:

57. Deputy Aindrias Moynihan asked the Minister for Finance his plans to regulate the bad credit moneylending industry; and if he will make a statement on the matter. [50518/18]

Amharc ar fhreagra

Freagraí scríofa

I assume that the Deputy intends to refer to licensed moneylenders who lend to people with bad credit histories. Illegal moneylenders operating without licences are a matter for An Garda Síochána.

As the Deputy may be aware, Deputy Pearse Doherty initiated a Private Member's Bill which would cap the APR which moneylenders can charge at 36 per cent. As indicated during second stage of that Bill, my Department is considering our response to the report prepared for Social Finance Foundation on interest rate restrictions by the Centre for Co-operative Studies of University College Cork. While this report recommended that usurious interest rates be prohibited, this recommendation was conditional upon the credit union movement being able to serve the community which is currently serviced by moneylending firms, subject to adherence to prudent credit guidelines. A major policy concern is how to ensure that credit continues to be available to this community in the event that supply of credit by moneylenders is reduced because of an interest rate cap.

Furthermore, the Central Bank published a Consultation Paper (CP118) in March 2018 on its review of the Consumer Protection Code for Licensed Moneylenders proposing new measures which would enhance the framework of protections for customers of licensed moneylenders. I understand that it expects to finalise and publish Regulations under Section 48 of the Central Bank (Supervision and Enforcement) Act 2013, to replace this Code in 2019.

Budget 2019

Ceisteanna (58)

Michael Moynihan

Ceist:

58. Deputy Michael Moynihan asked the Minister for Finance if he or his officials have been briefed on the ESRI report published on 11 December 2018. [53145/18]

Amharc ar fhreagra

Freagraí scríofa

A Special Article from the ESRI titled “Budget 2019: tax and welfare changes” was published on Tuesday, 11 December 2018. The article examines the distributional impact of the main tax and benefit changes in the Budget using the ESRI’s SWITCH model. Officials from the Department of Finance received an advance copy of the article one day prior to publication on 10 December 2018. This is in line with the pre-release protocol of the SWITCH Steering Committee. Officials made a submission to the Minister for information that day.

Brexit Issues

Ceisteanna (59)

Robert Troy

Ceist:

59. Deputy Robert Troy asked the Minister for Finance his views on the possibility that the United Kingdom will lose its membership of the common transit convention; and if he has raised these issues with his European and UK counterparts. [52201/18]

Amharc ar fhreagra

Freagraí scríofa

The United Kingdom submitted an instrument of accession to the Convention on Common Transit (CTC) on 30 January 2019.

Fuel Rebate Scheme

Ceisteanna (60)

Robert Troy

Ceist:

60. Deputy Robert Troy asked the Minister for Finance if he is satisfied with the performance of the diesel rebate scheme; if his attention has been drawn to the fact that many hauliers are dissatisfied with the design of the scheme; and if he will consider reforming same. [52197/18]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will be aware that the Diesel Rebate Scheme has been in place since 2013. Under this scheme, Revenue will repay some of the mineral oil tax paid by a qualifying road transport operator on diesel purchases when the diesel is purchased within the State and used in the course of business transport activities in qualifying motor vehicles.

The rebate under the scheme applies for qualifying applicants when the price of diesel reaches a certain level. Currently, the quarterly diesel repayment rate is calculated using the national average purchase price. The Central Statistics Office provides this information. The repayment rate is calculated on a sliding scale basis. At present, there is no repayment when the price of diesel, including VAT, is at or below €1.23 per litre. The maximum amount repayable under the scheme at present is 7.5 cent per litre when the price including VAT, is €1.54 per litre or over.

Ireland is one of only eight Member States that operates such a scheme and I am aware that there are different views on its merits. My Department's Energy & Environmental Tax Strategy Paper 2017 noted that the Diesel Rebate Scheme is a subsidy, or tax expenditure, and an ESRI study showed that the Scheme has encouraged greater consumption of diesel and this has had negative environmental consequences over the length of the scheme. The ESRI estimated that the added impact on emissions of CO2, NOX and PM10 is significant, with over 100,000 extra tonnes of CO2 emitted. I am also aware that the haulage sector wish for the terms of the scheme to be enhanced.

I made no change to the operation of this scheme in Budget 2019. As with all taxation measures, the operation of the scheme is kept under review as part of the annual Budget process each year.

Brexit Preparations

Ceisteanna (61)

Micheál Martin

Ceist:

61. Deputy Micheál Martin asked the Minister for Finance if he and his officials are preparing for soft technology options on the Border in view of the rules of the Single Market and in the event of there being a no-deal Brexit. [7052/19]

Amharc ar fhreagra

Freagraí scríofa

The Deputy refers to ‘soft technology’. For the purpose of this answer, it is assumed that the Deputy means a ‘soft border’ achieved by way of technological solutions.

I am advised by Revenue that there are currently no technological solutions in operation anywhere in the world that would solve the issues needed to avoid a hard border. Therefore there are no technological options that would provide the type of guarantee required to avoid a hard border, including any physical infrastructure and related checks and controls and to protect the integrity of the Single Market, post Brexit. In addition, the UK have not yet put forward technological options that would provide the types of satisfactory guarantees required to avoid a hard border and to protect the integrity of the Single Market, post Brexit.

The Government has been clear that it is not preparing for a hard border in any circumstances and remains of the firm view that the best and only way to avoid a hard border and protect the peace process is to ratify the Withdrawal Agreement agreed between the EU and the UK. I am therefore advised by Revenue that in line with the Government approach they are not preparing for technological solutions for the border with Northern Ireland, post Brexit.

In a no deal scenario, from 29 March 2019, the free circulation and movement of goods between EU Member States and the UK will end. Clearly, this will pose significant challenges for Ireland, for other EU Member States, and for the UK.

The Government has indicated that in the event of a ‘no deal’ exit, it will engage in intensive discussions with the EU Commission and our EU partners on the options available to avoid a hard border on the island of Ireland and to protect the EU’s Single Market and Ireland’s place in it. Revenue will provide whatever technical expertise and assistance may be required during this process.

Question No. 62 answered with Question No. 37.

Film Industry Tax Reliefs

Ceisteanna (63)

Richard Boyd Barrett

Ceist:

63. Deputy Richard Boyd Barrett asked the Minister for Finance the steps he is taking as a condition for approving section 481 film tax relief to ensure the application of all employment rights, legislation and in particular the Protection of Employees (Fixed-Term Work) Act 2003. [7476/19]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will be aware that a number of amendments were made to Section 481 of the Taxes Consolidation Act 1997 as part of Finance Act 2018.

I am advised that the office of the Revenue Commissioners carry out a comprehensive programme of ‘outdoor’ compliance operations each year, many of which are carried out on a multi-agency basis, which can include officials from the Department of Employment Affairs and Social Protection and the Workplace Relations Commission. The primary role of these joint investigation units is to detect non-compliance with tax and duty obligations, which includes non-operation of the PAYE system on foot of bogus self-employment.

The matter of quality employment requires input from industry stakeholders in addition to Government agencies, and the monitoring of compliance with employment rights legislation referenced by the Deputy is primarily a matter for the Department of Business, Enterprise and Innovation through the Workplace Relations Commission, which falls within that Department’s remit.

However I would note that Revenue is currently bringing forward the Regulations which are necessary to support the Finance Act 2018 amendments. I understand that the Deputy met previously with officials on these matters and I can confirm that relevant Labour Court interventions raised have been considered as part of these preparations. Officials from Revenue have also been working with the Department of Business Enterprise and Innovation in relation to the employment obligations of the producer company and qualifying company for section 481 claims.

Those Regulations must be made with the consent of both myself and my colleague, the Minister for Culture, Heritage and the Gaeltacht, and I understand that officials in both Departments are currently reviewing the relevant drafts.

VAT Rate Application

Ceisteanna (64)

Anne Rabbitte

Ceist:

64. Deputy Anne Rabbitte asked the Minister for Finance if vulture funds pay VAT on properties they sell; and if he will make a statement on the matter. [7517/19]

Amharc ar fhreagra

Freagraí scríofa

The sale of developed property by a developer, liquidator or any other party is generally liable to VAT at the 13.5% reduced rate.

Tax Collection

Ceisteanna (65)

Bernard Durkan

Ceist:

65. Deputy Bernard J. Durkan asked the Minister for Finance the reason a person (details supplied) accrued income tax arrears despite being in receipt of the appropriate tax credits or otherwise; and if he will make a statement on the matter. [7609/19]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that it has reviewed the tax situation of the person in question and is satisfied that underpayments occurred for the years 2014 to 2017 (inclusive). The underpayments arose because the person’s Department of Employment Affairs and Social Protection (DEASP) payments were not correctly taxed.

Revenue has confirmed that the outstanding arrears will be collected over a number of years so that the financial burden on the person is minimised to the greatest extent possible. This will be achieved by reducing their tax credits rather than involving any direct payment. Revenue has already held discussions with the person regarding an extended payment timeline that takes account of their personal circumstances.

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