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Tuesday, 5 Mar 2019

Written Answers Nos. 147-167

Tax Reliefs Availability

Ceisteanna (147)

Alan Farrell

Ceist:

147. Deputy Alan Farrell asked the Minister for Finance his views on the provision of tax relief on childcare services for families; and if he will make a statement on the matter. [10842/19]

Amharc ar fhreagra

Freagraí scríofa

The Minister for Children and Youth Affairs has primary responsibility for Government policy in relation to childcare. As the Deputy may be aware, parents are exempted from any income tax liability in respect of direct payments to childcare providers under the Single Affordable Childcare Scheme as operated by that Minister’s Department. 

The tax code also provides certain tax reliefs and incentives in this general area including the scheme of Accelerated Capital Allowances for employers that incur capital expenditure in providing childcare facilities for use by their employees (introduced in Finance Act 2018) and the Home Carer Tax Credit. 

With regard to the Home Carer Tax Credit, a review of this measure will be carried out by my Department in 2019 as part of First 5, the Whole of Government Strategy for Babies, Young Children and their Families (2019-2028) which was launched in November 2018. The purpose of this review will be to undertake research and analysis of the utilisation and effectiveness of the Home Carer Tax Credit, in line with the Tax Expenditure Guidelines. 

In relation to taxation more generally, I have no plans at present in relation to the question of possible further income tax relief for parents for childcare services. In this regard, I note the findings of the Interdepartmental Working Group on Future Investment in Childcare in Ireland, which published their report in July 2015. Having considered the option of a tax credit that would be available to those who incur childcare costs, the Group recommended against introducing such a measure. The group had concerns that a tax credit would not be equitable, would have high possible deadweight, could end up being fully absorbed in the cost of childcare, and might not have a meaningful impact on a parent's decision on whether to join or to return to the labour market.

The Interdepartmental Working Group also made some initial estimates of the potential costs of such a tax credit based on available data. Tentative costings, based on estimates of average childcare costs per pre-primary and primary school childcare place, were applied to Department of Employment Affairs and Social Protection figures on the numbers of such children in receipt of Child Benefit. If a tax credit were provided in respect of even half of these children at the standard rate of 20%, it would involve a potential cost to the Exchequer of between €290 million and €590 million per annum. The variation depends on the rate of take-up which is difficult to estimate. It was assumed for the purposes of that costing that all paid childcare would be covered by the relief (i.e. not just centre-based care).

Stamp Duty

Ceisteanna (148)

James Browne

Ceist:

148. Deputy James Browne asked the Minister for Finance the amount of stamp duty liable for a purchase of agricultural land to the value of €150,000; and if he will make a statement on the matter. [10896/19]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that, in the normal course of events, stamp duty is chargeable on the purchase of agricultural land at the rate of 6%. Land valued at €150,000 would therefore be liable to stamp duty of €9,000. However, in the absence of any specific details of the purchase involved, including any other acquisitions of land, it isn’t possible to say whether any relief or exemption from stamp duty would apply to the purchase.

Reliefs and exemptions that can apply to the purchase of agricultural land include the following:

Exemption for ‘young trained farmers’ : stamp duty is not payable where a person is under the age of 35 years and has obtained a recognised agricultural qualification and where certain other conditions in relation to the use of the land are met following the purchase. These conditions include

the requirement for a purchaser to spend at least 50% of his or her normal working time farming the land and to retain ownership of that land for a period of at least five years from the date of execution of the deed transferring the land.

Farm consolidation relief: where a Teagasc-approved consolidation of farmland takes place involving both a sale and purchase of land, stamp duty at a reduced rate of 1% is applied to the excess of the value of land purchased over the value of land disposed of, where the purchase and disposal take place within a 24-month period of each other.

Consanguinity relief : where agricultural land is purchased from certain relatives (such as parents, grandparents, aunts, uncles) stamp duty is chargeable at a reduced rate of 1% on the value of the land. Certain conditions must be met such as the requirement for the purchaser to farm the land or to lease it to someone who farms the land.

Full details of the available stamp duty reliefs and exemptions can be found in the “Property” section on the home page of the Revenue website (www.revenue.ie ) by following the “stamp duty” link.  Alternatively, the purchaser of the agricultural land should be advised to contact his or her local Revenue office with full details of the circumstances involved to ascertain if any stamp duty reliefs or exemption apply to the purchase.

Public Sector Pensions Levy

Ceisteanna (149)

Michael McGrath

Ceist:

149. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the number of persons paying the pension-related deduction in each year since it was introduced; the revenue received in each year since it was introduced; the number and references to each circular relating to the deduction; the number of pensioners per annum who have received refunds due to the fact they were overcharged since reductions were announced; the value in monetary terms of refunds paid each year; the processes in place to ensure that pensioners are paying the correct additional superannuation contribution level; and if he will make a statement on the matter. [10270/19]

Amharc ar fhreagra

Freagraí scríofa

The Pension Related Deduction (PRD) was introduced in March 2009 under the Financial Emergency Measures in the Public Interest Act 2009 (as amended) and was a temporary deduction from the salary of any serving public service employee having a public service pension entitlement as defined in the legislation.  PRD did not apply to pensioners and therefore should not be applied to pension payments.  PRD has now been replaced by the Additional Superannuation Contribution (ASC) as provided under the Public Service Pay and Pensions Act 2017 with effect from 1 January 2019.  ASC is a permanent contribution towards the cost of public service superannuation.  As with PRD, ASC only applies to serving public service employees who have a public service pension entitlement.  It does not apply to pensioners.  PRD was, and ASC is, deducted at source from employee remuneration at payroll level and, deductions, refunds or underpayments where they arise are managed through the relevant payroll for the individual concerned.

All public service employees who have a public service pension entitlement were liable for PRD and are now liable for ASC with those earning less than €32,000 in the case of members of a "standard accrual" pension scheme or the Single Scheme and €28,750 in the case of members of a "fast accrual" pension scheme being exempt from ASC.

It should be noted that PRD and ASC are different to the Public Service Pension Reduction (PSPR) which impacted on pensioners.  PSPR was introduced under the Financial Emergency Measures in the Public Interest Act 2010 with effect from 1 January 2011 and imposed reductions to pensions at levels which varied according to the date of retirement and the pay cut already suffered.

Please see PRD receipts detailed on a yearly basis since its introduction in 2009. 

PRD Yield

Year

Amount (€ millions)

2009

€837.419

2010

€948.605

2011

€960.224

2012

€934.739

2013

€925.986

2014

€877.800

2015

€875.985

2016

€705.998

2017

€478.617

2018

€522.499

Note 1: The years 2011 to 2016 do not include Local Government PRD yields

Note 2: The years 2017 & 2018 do not include the HSE PRD yield.  These figures will be provided directly to Deputy McGrath by the Department of Health.

Public Sector Pensions

Ceisteanna (150)

Frank O'Rourke

Ceist:

150. Deputy Frank O'Rourke asked the Minister for Public Expenditure and Reform the timeline and publication date for the report as per section 3(6) of the Public Service Superannuation (Age of Retirement) Act 2018 which commits to a report being laid before the Houses of the Oireachtas within three months of the passing of the Act (details suppled); and if he will make a statement on the matter. [10499/19]

Amharc ar fhreagra

Freagraí scríofa

The Public Service Superannuation (Age of Retirement) Act 2018 provides for an increase to age 70 in the compulsory retirement age of most public servants recruited before 1 April 2004. 

Public servants who reached the compulsory retirement age of 65 before the new legislation was enacted were required to retire in accordance with the statutory compulsory retirement age in effect at the time.  Those who availed of the interim arrangements did so in the knowledge that the contract was for one year only, until they reached the age of 66.  The Public Service Superannuation (Age of Retirement) Act 2018 has no effect on those public servants who availed of the interim arrangements.  The terms of their fixed term contracts continue to apply and they will cease working at age 66 as previously provided. 

Section 3A(6) of the Act provides that I, as Minister for Public Expenditure and Reform shall, within three months of the passing of the Act, prepare and lay before the Oireachtas a report on the public servants obliged to retire between 6 December 2017 and the commencement of the Act, due to reaching the age of 65 years, and on potential remedies to assist this cohort of worker. 

Work on the report is under way in accordance with the terms of Section 3A(6).  Under that provision, publication of the report is required within three months of the passing of the Act on 26 December and I intend to comply with that timeline.   

It would not be appropriate for me to comment on the content of a report which is currently under preparation, not completed and which I am statutorily obliged to lay before the Oireachtas.    

Capital Expenditure Programme

Ceisteanna (151, 162, 163, 164)

Barry Cowen

Ceist:

151. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the financial impact on the annual capital envelopes outlined in annex 1 of the National Development Plan 2018-2027 as a result of the increased costs associated with the national children’s hospital; the Departments that will be impacted; and if he will make a statement on the matter. [10225/19]

Amharc ar fhreagra

Joan Burton

Ceist:

162. Deputy Joan Burton asked the Minister for Public Expenditure and Reform if the figures for the capital plan are subject to evaluation and examination by his Department before inclusion in the budget; and if he will make a statement on the matter. [7361/19]

Amharc ar fhreagra

Joan Burton

Ceist:

163. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the way in which the capital plan is prepared and profiled; the regularity with which the budget is re-examined to identify changes required in provisioning for capital expenditure; and if he will make a statement on the matter. [7360/19]

Amharc ar fhreagra

Bernard Durkan

Ceist:

164. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which budgetary corrections in respect of capital expenditure need to follow in the wake of the overrun of costs for the national children’s hospital; and if he will make a statement on the matter. [7346/19]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 151 and 162 to 164, inclusive, together.

My Government colleagues and I have examined all projects and programmes across government in order to meet the funding pressures accruing on the National Children’s Hospital project.  This has allowed us to reschedule €75 million from projects such as in the case of the A5 Motorway in Northern Ireland, which is paused due to external issues; and to re-profile the delivery of some projects within the multi-year capital envelopes.  The Department of Health will also re-profile €24 million in capital funding across both 2019 and 2020 to facilitate multi-annual management of projects and works within the capital envelopes and to ensure the timely delivery of the National Children's Hospital project.  A full list of the adjustments is set out below;

- re-scheduling of €27m arising in relation to the A5 Motorway in Northern Ireland;

- re-scheduling of €10m arising in relation to the National Forensic Science Laboratory;

- advance payment of a sum of €10m from the Department of Education and Skills in respect of higher education facilities at the National Children’s Hospital;

- an updating of the scheduled draw-down of €16m from the two Project Ireland 2040 Regeneration Funds, which are being profiled for expenditure throughout the course of both 2019 and 2020 without delays in project planning, design and delivery;

- re-profiling of payments of €4m under certain programmes of investment in Communications, Climate Action & Environment;

- €3m from the re-profiling of investment under the Flood Risk Management Programme of the Office of Public Works to allow for capacity to be built up over the course of the NDP period;

- revision of the schedule of drawdown of funding in the PER and Finance Groups of Votes totalling €3m; and

- €2m through changes to the timing of payments relating to certain capital works by the Department of Culture, Heritage and the Gaeltacht, with full project delivery scheduled across both 2019 and 2020.

The Government has approved the proposals in this regard, which I announced on the 12th February.  The overall intention is to proceed with our very ambitious agenda of strategic infrastructure investment throughout the course of 2019 and subsequent years, with the minimum of disruption to the rollout and delivery of key projects.

The National Development Plan (NDP) sets out the Government's commitment to capital investment up to 2027, and was prepared with substantial involvement by all relevant Departments and Agencies. Responsibility for evaluation and costing of individual projects is a matter for those Departments and Agencies. NDP sets out the multi-annual capital funding strategy, which feeds into the normal Budgetary cycle, culminating in the Revised Estimates Volume voted by the Dáil. As high-level aggregate allocations, the NDP capital envelopes have a broadly stable character; it is anticipated that updates to the overall envelopes, to take account of policy developments and to include the new incoming year of the five-year frame of reference, will be made in due course.

Garda Stations

Ceisteanna (152)

Brendan Griffin

Ceist:

152. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if a vacant Garda station (details supplied) in County Kerry is for sale; and if he will make a statement on the matter. [10332/19]

Amharc ar fhreagra

Freagraí scríofa

The former Garda station at Camp, Co. Kerry is currently not for sale.  

As part of the Programme for a Partnership Government, the Office of Public Works (OPW) was requested not to dispose of any further closed Garda stations pending the outcome of two reviews of closed Garda stations.

The first review identified six closed Garda stations for reopening and the second review, published on the 21st December 2018, did not identify any further closed Garda stations for reopening. 

The Commissioners of Public Works will now proceed to review the remaining closed Garda stations in State ownership in line with the OPW’s policy on surplus vacant property.  

The OPW policy with regard to non-operational (vacant) State property, including the former Garda station at Camp, Co. Kerry is to:  

1. Identify if the property is required/suitable for alternative State use by either Government Departments or the wider public sector.

2. If there is no other State use identified for a property, the OPW will then consider disposing of the property on the open market if and when conditions prevail, in order to generate revenue for the Exchequer.  

3. If no State requirement is identified or if a decision is taken not to dispose of a particular property, the OPW may consider community involvement (subject to a detailed written submission, which would indicate that the community/voluntary group has the means to insure, maintain and manage the property and that there are no ongoing costs for the Exchequer).

Garda Station Refurbishment

Ceisteanna (153)

Eamon Scanlon

Ceist:

153. Deputy Eamon Scanlon asked the Minister for Public Expenditure and Reform the position regarding the upgrade of Tubbercurry Garda station in County Sligo; when approval for works will be granted; and if he will make a statement on the matter. [10372/19]

Amharc ar fhreagra

Freagraí scríofa

The Office of Public Works, working with Garda Estate Management, has identified options for the upgrade of Tubercurry Garda Station. A decision on the approval and prioritisation of these works is a matter for An Garda Síochána in due course.

Public Sector Pensions

Ceisteanna (154)

Seán Haughey

Ceist:

154. Deputy Seán Haughey asked the Minister for Public Expenditure and Reform his plans to abolish parity-based public service pension schemes and replace them with pension schemes linked to the consumer price index; and if he will make a statement on the matter. [10419/19]

Amharc ar fhreagra

Freagraí scríofa

I have no plans to abolish existing public service pension schemes. In accordance with the policy adopted when the Single Pension Scheme (SPS) was introduced for new entrants to the public service from 1 January 2013 onwards, pre-existing pension schemes will continue to apply to public servants who are not members of the SPS.

As the member may be aware, the SPS is a career average pension scheme which provides that both the referable amounts that are accrued by serving staff while in employment, as well as pensions in payment, are uprated in line with changes in the consumer price index.

The legislation that introduced the SPS includes a provision that allows for the extension to the pre-existing pension schemes of the policy of uprating pensions in line with changes in the consumer price index.

As part of the Government’s commitment under the Public Service Stability Agreement 2018-2020, the pension increase policy that is currently in place in respect of the pre-existing pension schemes represents a time-limited (expires end-2020), conditions-bound return to the non-statutory, pay-linked method of pension adjustment which prevailed until the onset of the financial emergency. 

Information and Communications Technology

Ceisteanna (155)

Louise O'Reilly

Ceist:

155. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform if Ireland has set up its electronic data exchange system known as e-cohesion; and if not, the reason. [10535/19]

Amharc ar fhreagra

Freagraí scríofa

The eCohesion ICT system went live last year, March 2018.

Information and Communications Technology

Ceisteanna (156)

Louise O'Reilly

Ceist:

156. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform if Ireland has implemented a national information technology system to meet the 2014-2020 European Structural and Investment Funds requirements; and if not, the amount of funding which has either been lost or been unable to be drawn down each year due to this in tabular form. [10537/19]

Amharc ar fhreagra

Freagraí scríofa

The eCohesion ICT system, a regulatory requirement for 2014 - 2020 ESIF, went live last year, March 2018.

 With regard to the Deputy's question on drawdown, I would like to reassure her that we have not lost any EU funding.  

Information and Communications Technology

Ceisteanna (157)

Louise O'Reilly

Ceist:

157. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform if Ireland has implemented a national information technology system to meet the 2014-2020 European Structural and Investment Funds requirements; and if not, the reason therefor. [10539/19]

Amharc ar fhreagra

Freagraí scríofa

The eCohesion ICT system, a regulatory requirement for 2014 - 2020 ESIF, went live last year, March 2018.

Information and Communications Technology

Ceisteanna (158)

Louise O'Reilly

Ceist:

158. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform the estimated conclusion date for the implementation of a national information technology system to meet the 2014-2020 European Structural and Investment Funds requirements. [10541/19]

Amharc ar fhreagra

Freagraí scríofa

The eCohesion ICT system, a regulatory requirement for 2014 - 2020 ESIF, went live last year, March 2018.

Information and Communications Technology

Ceisteanna (159)

Louise O'Reilly

Ceist:

159. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform the name of the company which won the tender for the contract to develop and implement the national information technology system to meet the 2014-2020 European Structural and Investment Funds requirements. [10543/19]

Amharc ar fhreagra

Freagraí scríofa

Following a tendering process organised by the Office of Government Procurement (OGP), the contract was awarded to SugarCRM Inc., / Provident CRM Limited.

Flood Relief Schemes Status

Ceisteanna (160, 161)

Jan O'Sullivan

Ceist:

160. Deputy Jan O'Sullivan asked the Minister for Public Expenditure and Reform the work planned to protect residents from flooding in the Corbally area of County Limerick; when work will commence; and if he will make a statement on the matter. [10584/19]

Amharc ar fhreagra

Jan O'Sullivan

Ceist:

161. Deputy Jan O'Sullivan asked the Minister for Public Expenditure and Reform the timeframe for the planning and construction of flood defences on the Abbey river in Limerick city; when works will commence; the projected timeframe for completion; and if he will make a statement on the matter. [10587/19]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 160 and 161 together.

Corbally – Limerick City & Environs Flood Relief Scheme (FRS)

The Catchment Flood Risk Assessment and Management (CFRAM) recommends progressing the project-level development and assessment of a Flood Relief Scheme for Limerick City & Environs, which includes the Corbally area. This work will involve detailed development of the measures, environmental assessment as necessary, and further public consultation, for refinement and preparation for planning/exhibition and, if and as appropriate, implementation.

The Office of Public Works (OPW) has set up a project steering group for the Limerick City and Environs Flood Relief Scheme, comprising of OPW personnel and representatives from Limerick County Council. The first Steering Group meeting was held in September, 2018. The group's initial task will be to prepare a Brief for the procurement of engineering and environmental consultants to progress the design of the works and to examine all the required environmental considerations.

Once consultants are appointed to progress this Flood Relief Scheme, consultation with statutory and non-statutory bodies, as well as the public, will take place at the appropriate stages to ensure that all parties have the opportunity to input into the development of these schemes.

Abbey River - King’s Island FRS

Following severe flooding in Limerick City in February 2014, a commitment to funding both temporary and permanent flood defence works was given by OPW to Limerick City and County Council (LCCC). These works formed part of the Limerick Regeneration Project. Funding was granted to the local authority for the construction of sheet piling behind an embankment as a temporary measure with a view to the more permanent solution eventually incorporating these works. Approval was granted to the local authority in August 2015 to proceed with the development of a flood relief scheme, which will form part of the overall solution for the City.

Limerick City and County Council, with support from the OPW, are actively progressing the flood relief scheme at Kings Island, which includes the Abbey River, at an estimated cost of €26m. The scheme will protect approximately 450 residential and 23 commercial properties. Limerick City and County Council are scheduled to lodge planning with An Bord Pleánala later this year with a completion date of end of 2021.

The King’s Island Flood Relief Scheme remains a priority and the OPW has included provision for the cost of the proposed works in its financial profiles.

Questions Nos. 162 to 164, inclusive, answered with Question No. 151.
Question No. 165 answered with Question No. 58.

Office of Public Works

Ceisteanna (166)

Peter Burke

Ceist:

166. Deputy Peter Burke asked the Minister for Public Expenditure and Reform if the Office of Public Works, OPW, will consider buying a property (details supplied); the process for potential sellers to contact the OPW relating to property sales; and if he will make a statement on the matter. [10657/19]

Amharc ar fhreagra

Freagraí scríofa

The Commissioners of Public Works, on behalf of the State, hold and manage a large and diverse property portfolio which includes office accommodation, heritage properties, visitor centres and Garda Stations.

The Commissioner of Public Works adhere to a policy on property acquisition and disposal which is set down in DPER Circular 17/2016 - Policy for Property Acquisition and for the Disposal of Surplus Property. Central to this policy in an assessment of need. A decision to acquire property in a particular location is first based on an assessment of need, and the property options for satisfying that need. Once a decision has been made that property needs to be acquired, the OPW follows procedures that are suited to the local market conditions applying at that time.  

Office of Public Works Projects

Ceisteanna (167)

Mick Barry

Ceist:

167. Deputy Mick Barry asked the Minister for Public Expenditure and Reform the reason the Office of Public Works, OPW, has not secured ownership of the 25% section of a site (details supplied) by requiring Wexford County Council to also obtain a new folio for this part of the site and transfer the new folio to the OPW. [10721/19]

Amharc ar fhreagra

Freagraí scríofa

The Commissioners of Public Works are the registered owners of the properties contained in Folios WX22940F and WX21417F.  These properties known as Government Offices, Anne Street, Wexford currently accommodate the Office of the Revenue Commissioners and the Department of Employment Affairs and Social Protection.  

There are a number of complex title issues associated with these properties, which are being dealt with in turn by the Office of Public Works (OPW) and the Chief State Solicitor's Office.  

Once the matters are fully investigated and resolved, the OPW will provide Deputy Barry with an update.

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