Written Answers Nos. 76-100
76. Deputy James Browne asked the Taoiseach and Minister for Defence if he will consider creating an Army bereavement fund for ex-soldiers whose family members pass away; and if he will make a statement on the matter. [42598/19]
Amharc ar fhreagraIn addition to a range of State supports for families that suffer bereavement, the Defence Forces Benevolent Fund is also available for former members of the Defence Forces and their families. This fund was established to provide support to veterans of the Defence Forces who experience periods of difficulty, including family bereavement.
Support is organised and distributed through committees of serving military personnel who are active in each of the formations of the Defence Forces, including the Air Corps, the Naval Service, 1 Brigade, 2 Brigade and the Defence Forces Training Centre.
The fund operates in a confidential and supportive manner to provide much needed support to military veterans, regardless of rank or length of service, and who are resident in the state and overseas.
While the Defence Forces Benevolent Fund operates as a fund within the Defence Forces, it works in close cooperation with the Veterans’ Associations, including the Organisation of National Ex-Service Personnel (O.N.E.), the Irish United Nations Veterans Association (IUNVA), and the Association of Retired Commissioned Officers (ARCO).
As there are a range of supports currently available, there are no plans to create a separate Bereavement fund for former members of the Defence Forces. Every effort is made to ensure that those who have suffered a bereavement are made aware of the full range of supports available.
77. Deputy Niamh Smyth asked the Tánaiste and Minister for Foreign Affairs and Trade the status of the input by his Department into the ongoing outstanding requests with the UK Government regarding inquiries into the Dublin and Monaghan bombings; and if he will make a statement on the matter. [42449/19]
Amharc ar fhreagra17 May last marked the 45th anniversary of the appalling attacks of the Dublin and Monaghan bombings in which 33 people were murdered. The Minister for Justice and Equality, Charles Flanagan TD, represented the Government at the remembrance ceremony in Dublin.
The Government stands in solidarity with all those who lost loved ones or were injured on that day, and who suffer still as a result of these bombings.
The implementation of the All-Party Dáil motions relating to the Dublin and Monaghan bombings is a priority for the Government, as highlighted in the Programme for a Partnership Government.
The All-Party motion on the 1974 Dublin Monaghan bombings adopted by the Dáil on 25 May 2016 has, like those adopted in 2008 and 2011, been conveyed to the British Government.
These motions call on the British Government to allow access by an independent, international judicial figure to all original documents relating to the Dublin and Monaghan bombings, as well as the Dublin bombings of 1972 and 1973, the bombing of Kay’s Tavern in Dundalk and the murder of Seamus Ludlow.
The Government is committed to actively pursuing the implementation of these all-Party Dáil motions. We have consistently raised the issue with the British Government on a bilateral basis, including at the British-Irish Inter-Governmental Conference on 8 May.
I and Minister Flanagan made clear to our counterparts at the Conference that the absence of a response from the British Government is of deep concern to the Government, and that there remains an urgent need for a response.
The Government will continue to engage with the British Government on this request, at senior political level and in senior official level engagement by my Department, to pursue all possible avenues to achieve progress on this issue, consistent with the request made by this House and until a resolution is found.
78. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he will raise with members of the British Government the need to establish a comprehensive inquiry into the Birmingham pub bombings of 1974 as requested (details supplied), as these bombings caused the deaths of 21 innocent persons, and the need to have persons brought to justice for these heinous crimes; and if he will make a statement on the matter. [42550/19]
Amharc ar fhreagraOn 3 October, I greatly welcomed the opportunity to meet on behalf of the Government with the relatives of those who lost their lives in the 1974 Birmingham Bombings.
The lives of 21 people were brutally taken in these appalling attacks for which there was never any justification.
I conveyed to the families the Government’s enduring abhorrence of these attacks, which is shared by the Irish people. I expressed our solidarity with the families in their continuing search for those responsible to be brought to justice and account for their crimes.
I also acknowledged the significance of the families’ visit to Ireland, and the families spoke of their deep appreciation that President Higgins had welcomed them at Áras an Uachtaráin as part of their visit.
With regard to a possible public inquiry in the UK, it is important to note that a police investigation into the bombings remains open in Birmingham. I discussed with the families their views on how justice and the full truth of what happened to their loved ones could be further pursued. I conveyed that the Irish Government would remain engaged and supportive of the families’ continuing search for justice and truth, however that can best proceed in the UK.
On 4 October, I spoke to the Secretary of State for Northern Ireland regarding my meeting with the the Birmingham families and I conveyed their request for further engagement with the British Government on how justice and the full truth of what happened can be further pursued in their case.
The Government looks forward to keeping in contact with the Birmingham families as they continue this search with dignity and determination, 45 years after their loved ones were cruelly taken away.
The Government will also continue to engage with the British Government to seek urgent progress with the establishment of the legacy institutions of the Stormont House Agreement, to address the legacy of the past in a comprehensive way, in support of healing for victims' families and societal reconciliation across these neighouring islands.
79. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he discussed the Good Friday Agreement when he met with his UK counterpart. [42312/19]
Amharc ar fhreagraThe Taoiseach and I are engaged with our counterparts in the British Government on an ongoing basis in support of the Good Friday Agreement and to address current challenges.
The Article 50 negotiations are conducted by the Commission Task Force with the UK. Throughout this process, the Taoiseach and I have actively engaged with the British Government to underline the Government’s concerns about the impact of Brexit on the island of Ireland and the imperative of protecting the Good Friday Agreement and the achievements of the Peace Process. This was a focus of the Taoiseach’s discussions with Prime Minister Johnson last week.
I have underlined the requirement to protect the Good Friday Agreement in recent weeks in my meetings with the Secretary of State for Northern Ireland, Julian Smith, the Foreign Secretary, Dominic Raab, the Secretary of State for Exiting the EU, Stephen Barclay, and the UK Minister of the Cabinet Office, Michael Gove.
I am also continuing to engage with the Secretary of State for Northern Ireland to work to secure agreement between the parties to get the devolved institutions of the Agreement up and running, meeting most recently yesterday, 15 October.
The continuing absence of the power-sharing Executive and Assembly in Northern Ireland and the North South Ministerial Council is of grave concern for the Government, as it is for the British Government.
People want the devolved power-sharing institutions up and running again to represent their interests and deal with the issues and challenges that Northern Ireland faces at present, not least the difficulties raised by the UK exit from the European Union.
As well as the Assembly and Executive, the functioning of the North South Ministerial Council is also urgently required, to bring together the Executive and the Government to oversee and develop co-operation on the island, and as a vital part of the Good Friday Agreement.
The two Governments in addition meet through the British Irish Intergovernmental Conference, as the institution of Agreement that brings together to two Governments “to promote bilateral co-operation at all levels on all matters of mutual interest within the competence of both Governments”. The last meeting of the Conference was in May, and a date for the next meeting is currently under consideration.
The Government will continue to do everything possible to support continuing engagement and progress in discussions between the political parties, working with the UK Government in any scenario, as co-guarantors of the Good Friday Agreement.
80. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the progress in having the Assembly and Executive in Northern Ireland restored following his most recent talks with the Secretary of State for Northern Ireland; and if he will make a statement on the matter. [42568/19]
Amharc ar fhreagraThe continuing absence of the power-sharing Executive and Assembly in Northern Ireland and the North South Ministerial Council is of grave concern for the Government, as it is for the British Government.
I have engaged extensively with the Secretary of State for Northern Ireland throughout the latest talks process, to encourage the parties to reach an accommodation. I remain in regular and ongoing contact with Secretary of State Smith as we continue to work to seek an agreement between the parties to get all of the institutions of the Agreement up and running again.
All five political parties have engaged constructively in the talks process with that objective over the last number of months. Progress has been made across a range of important issues. However, some key outstanding issues remain and finding final agreement on these issues will require genuine and courageous dialogue and leadership by the party leaders in Northern Ireland.
The awful murder of Lyra McKee and the outpouring of public feeling that followed demands a serious response at political level. People want the devolved power-sharing institutions up and running again to represent their interests and deal with the issues and challenges that Northern Ireland faces at present, not least the issues raised by the UK exit from the European Union, however this proceeds.
The functioning of the North South Ministerial Council is also urgently required, to bring together the Executive and the Government to oversee and develop co-operation on the island, and as a vital part of the Good Friday Agreement.
In this context, the political parties, in particular the two largest parties, must live up to their responsibilities and be open to fair and workable compromises on the small number of outstanding issues, to secure the overall interests of people in Northern Ireland and to protect and operate the institutions of the Good Friday Agreement again.
This will be difficult, but the two Governments believe that this can, and must, be achieved.
Accordingly, the Government will continue to do everything possible to support continuing engagement and progress in discussions between the political parties, working with the UK Government in any scenario, as co-guarantors of the Good Friday Agreement.
81. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the outcome of his most recent discussions with Mr. Barnier of the EU Commission on Brexit; and if he will make a statement on the matter. [42569/19]
Amharc ar fhreagraI met with Michel Barnier in Brussels on 8 October to take stock of developments regarding the Task Force's ongoing discussions with the UK. I also took the opportunity to have a discussion with him during the GAC Article 50 meeting in Luxembourg on 15 October.
During both meetings it was clear that Mr Barnier and the Task Force remain fully committed to the EU's core objectives of protecting the Good Friday Agreement in all its parts, avoiding a hard border, including any physical infrastructure and related checks and controls, protecting North South cooperation and the all island economy, and protecting the integrity of the EU’s Single Market and Customs Union and Ireland’s place in them. Ireland and the EU's shared position on these objectives remains clear and consistent.
We welcome the intensified discussions that are currently taking place between the Task Force and the UK towards reaching an agreement. Although little time remains, a deal may be achiveable but it will be difficult. It is important now that the focus is kept on achieving a deal that delivers for everyone.
I and my officials will continue to engage with the Task Force and our EU partners.
82. Deputy Bobby Aylward asked the Minister for Finance the position regarding the tax refund available to farmers using green diesel following the recent rise in carbon tax affecting fuel and operating costs; and if he will make a statement on the matter. [42399/19]
Amharc ar fhreagraIn my Budget 2020 speech, I announced an increase from €20 to €26 in the carbon tax. Following the approval of the Dáil, this increase has been applied to Mineral Oil Tax (MOT) rates for mineral oils used as auto-fuels (for cars and trucks) from midnight on 9 October 2019. All other MOT rates remain at their current levels until 1 May 2020 when new rates will take effect subject to the enactment of the Finance Bill 2019.
The current rate of MOT for marked gas oil (MGO), also referred to as “green agricultural diesel”, is €102.28 per 1,000 litres, comprised of a carbon charge component of €54.92 and a non-carbon charge component of €47.36 per 1,000 litres. These rates did not increase from Budget night. From 1 May 2020 the MOT rate for MGO will be €117.78 per 1,000 litres, arising from the increase of the carbon component from €54.92 to €70.42; the non-carbon component will not change from its current level of €47.36 per 1,000 litres.
When carbon tax was increased in Budget 2012, provision was made for a tax relief for farmers to compensate them for the increase. The statutory basis for the tax relief is section 664A of the Taxes Consolidation Act 1997. It is available to individuals and companies that carry on a trade of farming and are entitled to claim an income tax or corporation tax deduction in respect of farm diesel. Section 664A provides that a farmer may take an income tax or corporation tax deduction for farm diesel (including any carbon tax charged in respect of the diesel) and then a further deduction for farm diesel which is equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres of farm diesel (the 2012 baseline).
83. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 57 of 3 October 2019, the value of deposits and investments held by Irish credit unions in the United Kingdom; and if he will make a statement on the matter. [42361/19]
Amharc ar fhreagraFurther to Parliamentary Question No. 57 of 3 October 2019, I have been informed by the Central Bank that credit unions provide information on ‘Investments by Counterparty’ on their quarterly Prudential Return. Based on data provided by credit unions on the June 2019 Prudential Return credit unions hold c.€13 billion in deposits and investments with c. €1.8 billion held in UK credit institutions.
The Central Bank has advised that under the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the 2016 Regulations), credit unions are permitted to invest in a prescribed list of investments including accounts in credit institutions and bank bonds issued by credit institutions (defined as a person authorised as same pursuant to Directive 2013/36/EU (CRD IV)).
Based on data reported by credit unions, the Central Bank is aware that a proportion of credit union investments are held with UK entities passporting into Ireland under this Directive. Post-Brexit, the UK will become a third country (non-EU) for the purposes of the CRD IV. In the event that passporting rights no longer apply to UK credit institutions as a direct consequence of the UK withdrawing from the European Union, credit union investments with those counterparties would no longer come within a permitted class of investment under the 2016 Regulations. Under such a scenario breaches of the 2016 Regulations arising would be as a result of circumstances beyond the control of individual credit unions.
The Central Bank issued a communication to credit unions on 16 October 2019 confirming that it is not expecting individual credit unions to take action on these investments now. The Central Bank proposes to put a transitional arrangement in place for such investments, if required, once it has clarity on the terms of a UK exit from the European Union.
84. Deputy Robert Troy asked the Minister for Finance the first year and full year costs of changes announced in budget 2020 to schemes (details supplied). [42369/19]
Amharc ar fhreagraIn Budget 2020 I announced policy changes to a number of taxation measures with the objective of supporting Enterprise, SMEs and the Agri-sector. This package of measures included the Key Employee Engagement Programme (KEEP), the Employment and Investment Incentive (EII), the Special Assignee Relief Programme (SARP), the Foreign Earnings Deduction (FED) and the Research and Development tax credit, amongst others.
Details of the costs of these policy measures are provided in the following table.
|
Measure |
2020 Cost (€M) |
Full Year Cost (€M) |
|
Key Employee Engagement Programme Enhancements to the programme plus cost of measure in existing form |
0.5 |
10 |
|
Employment and Investment Incentive Enhancements to the programme |
21 |
25 |
|
Special Assignee Relief Programme Extension in its present form until 31 December 2022* |
0 |
20 |
|
Foreign Earnings Deduction Extension in its present form until 31 December 2022* |
0 |
3.5 |
|
R&D Tax Credit - Enhancements to credit for small and micro companies - Increased third level outsourcing limit |
0 |
23 |
The figures outlined in the above table are set out in Ireland’s Draft Budgetary Plan as submitted to the European Commission on 15 October 2019 and are reflected in the revised ‘Budget 2020 – Tax Policy Changes’ book, as laid before both Houses on the same date.
*As matters stand currently, this relief has a sunset clause of 31 December 2020.
85. Deputy Robert Troy asked the Minister for Finance the details of an updated cost of adapting the employment and investment incentive scheme following the changes announced in budget 2020 (details supplied) according to the new income tax relief rate and investment limit introduced in tabular form. [42370/19]
Amharc ar fhreagraI understand that the Deputy is referring to the Budget 2020 change to increase the annual investment limit for the Employment and Investment Incentive (EII) from €150,000 to €250,000. I am advised by Revenue that, taking that proposed change into account, the estimated cost to the Exchequer of increasing the annual investment limit to the amounts indicated by the Deputy is set out in the following table.
|
Proposed New Threshold |
Tax Cost €m |
|
€300,000 |
0.13 |
|
€400,000 |
0.25 |
|
€500,000 |
0.37 |
|
€600,000 |
0.49 |
|
€700,000 |
0.61 |
|
€800,000 |
0.70 |
|
€900,000 |
0.78 |
|
€1m |
0.86 |
|
€1.1m |
0.94 |
|
€1.2m |
1.02 |
|
€1.3m |
1.10 |
|
€1.4m |
1.18 |
|
€1.5m |
1.26 |
|
€1.6m |
1.34 |
|
€1.7m |
1.42 |
|
€1.8m |
1.50 |
|
€1.9m |
1.58 |
|
€2m |
1.66 |
The estimates in the table are based on actual 2017 investments and assume there are no behavioural changes resulting from the increased cap on the relief.
86. Deputy Robert Troy asked the Minister for Finance the first year and full year costs following the changes announced in budget 2020 of equalising the earned income credit with PAYE credit. [42371/19]
Amharc ar fhreagraI am advised by Revenue that the first and full year costs of further increasing the Earned Income Tax Credit by €150, to equalise the level with the PAYE Credit, are estimated to be in the order of €20m and €35m respectively.
87. Deputy Robert Troy asked the Minister for Finance the first year and full year cost to the Exchequer following the changes announced in budget 2020 of the change to the research and development tax credit (details supplied) in tabular form. [42372/19]
Amharc ar fhreagraIt is assumed that the Deputy is referring to the Budget 2020 change to increase the Research and Development (R&D) tax credit from 25% to 30% on qualifying expenditure for relevant micro and small companies. This measure is being introduced subject to State aid approval.
I am advised by Revenue that the estimated cost of increasing the rate from 30% to the levels indicated by the Deputy, for micro and small companies only, is set out in the following table. These costs do not include the impact of any behavioural change.
|
Proposed Rate for Small and Micro Companies |
Tax Cost €m |
|
31% |
3.6 |
|
32% |
7.2 |
|
33% |
10.8 |
|
34% |
14.4 |
|
35% |
18.0 |
|
36% |
21.6 |
|
37% |
25.2 |
|
38% |
28.8 |
|
39% |
32.4 |
|
40% |
36.0 |
88. Deputy Eoin Ó Broin asked the Minister for Finance the impact of spending on social housing being classified as investment rather than expenditure as part of the EU fiscal rules; and the engagements he has had with the European Commission or EU Council of Ministers to make the case for such a reclassification to assist the State in dealing with the ongoing housing crisis. [42390/19]
Amharc ar fhreagraThe reporting of government spending under the Stability and Growth Pact obligations is classified according to the European System of Accounts 2010 (ESA 2010) framework.
To avoid penalising spikes in government investment in Gross Fixed Capital Formation (GFCF), the European Commission allows this investment to be averaged over a four year period. This means that only one quarter of the increase in GFCF will impact on compliance under the expenditure benchmark in that year. Basically, GFCF is smoothed over four years under the expenditure benchmark.
GFCF of general government consists of annual government investments, deducting disposals, in fixed assets retained for its own use. Fixed assets are tangible or intangible assets as defined by and in accordance with ESA 2010.
Statistical classification is a matter for the national statistical institutes (NSI) in EU Member States, subject to the oversight of Eurostat, the European statistical agency. For Ireland the Central Statistics Office (CSO) is the NSI. Both the CSO and Eurostat are independent in their statistical functions and I have no role in such matters.
The Government has allocated €6.6 billion for the delivery of social housing supports in the last four years. This is an unprecedented level of investment, which will allow Government to continue to respond to the significant increase in demand for housing supports while also prioritising investment in the social housing programme.
Specifically in the area of social housing capital funding of over €1.1 billion has been allocated to support the delivery of over 11,000 new social homes in 2020. A further 12,000 units will be delivered in 2021.
An additional €80 million will be provided for the Housing Assistance Payment scheme next year. This funding will support the existing tenancies availing of the payment, as well as an additional 15,750 new tenancies in 2020.
89. Deputy Catherine Murphy asked the Minister for Finance the status of the investigation into the findings of the Moriarty tribunal; if he is satisfied that the findings will be acted upon; if further consideration has been given to the transmission to other agencies of information obtained by the Revenue Commissioners under bilateral agreements; and if he will make a statement on the matter. [42419/19]
Amharc ar fhreagraThe Moriarty Tribunal made a number of recommendations which affected a number of Government Departments. As Minister for Finance, I can only respond in relation to the recommendations made in relation to my own Department.
As the Deputy will be aware, the tribunal pointed out problems to be addressed in our system of financial regulation. Poor supervision, an overly-deferential attitude by regulators, poor assessment of risks and a lack of follow-through on enforcement, all played a part in the financial crisis. I and my European counterparts have been working steadfastly since the financial crisis to bring about strengthened oversight and resolution regimes. The entire financial services landscape has changed utterly, characterised by the presence of new European institutions; strengthened regulations; a more intrusive supervisory approach; and a new focus on macroprudential requirements.
New European regulations have strengthened controls over the banking system and have resulted in an overhaul of regulation, supervision and resolution regimes. The capital requirements' regulation and directive, which came into force in 2014, brought about significant enhancements in the quality and quantity of capital that banks are required to hold and the setting of minimum liquidity requirements.
The Banking Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism have transformed the framework for dealing with failing banks and are designed to provide a financial safety net and a means for recovery and resolution with minimum disruption to the sovereign. The overarching objective of the BRRD is to shift the cost of bank failure from taxpayers to shareholders and creditors of the institutions themselves.
The Single Supervisory Mechanism (SSM) is now responsible for the prudential supervision framework for euro area banks. The central piece of the SSM supervisory process is the Supervisory Review and Evaluation Process (SREP) under which ECB led joint supervisory teams inspect business models, internal governance, profitability and banking risks.
All of these new regulations and institutional arrangements have been designed to address the challenges of banking oversight and resolution at a European level and provide for a pro-active approach towards systemic and emergent risks at a European level.
Besides the introduction of new European and national regulations, the Central Bank too has increased its resources and has become more pro-active in addressing systemic risk.
In response to the Tribunal recommendations I considered the provision of tax relief for donations to political parties and decided against introducing such relief. The Electoral (Amendment) (Political Funding) Act 2012 provided for changes to the Electoral Act, 1997 and imposed new limits for donations. Donations to individuals exceeding €600 must be declared and donations exceeding €1,000 in any one year may not be accepted. Political party donations greater than €1,500 must be declared and donations greater than €2,500 in any one year may not be accepted. These limits, in themselves, should act to deter any attempts by wealthy individuals to influence political activity.
Recommendation: Representations to Revenue by Office holders -
In relation to this proposal, I remain of the view that this recommendation could best be considered in the context of the Government's overall approach to political and parliamentary reform. Representations are a valid part of the political process. The Government may wish to consider whether this recommendation should be confined to Revenue, or to Office holders, or whether the Commissioners decision to publish data on the volume of representations made by each Deputy is an adequate response.
The Office of the Revenue Commissioners has advised in relation to the following recommendations of the Moriarty Tribunal that:
Recommendation: Independence of the Revenue Commissioners -
Section 101 of the Minister and Secretaries (Amendment) Act 2011 placed on a statutory basis the independence of the Revenue Commissioners in the exercise by the Commissioners of their statutory functions under the various taxation and customs enactments. This has given effect to the recommendation of the Report of the Tribunal into Payments to Politicians and Related Matters (that is, the report of Mr. Justice Moriarty), that the principle or convention of the independence of the Revenue Commissioners be placed on the more robust status of a legislative provision.
Recommendation: Transmission to other agencies of information obtained by Revenue under bilateral agreements -
This recommendation has been considered. These agreements are international treaties which are very precisely drawn as to the purpose for which information may be used and would not permit such transmission. However, if opportunities arise in the future, the Commissioners will consider the matter further.
However where, in the particular context of multilateral automatic exchange of information arrangements, specific circumstances arise on a case-by-case basis that would warrant Revenue considering requesting permission under those arrangements from the tax authority providing the information concerned to transmit information to another agency, Revenue will do so.
90. Deputy Sean Fleming asked the Minister for Finance the VAT rate charged on food supplements; and if he will make a statement on the matter. [42482/19]
Amharc ar fhreagraThe standard rate of VAT applies to food supplement products. Shortly after the introduction of VAT, Revenue allowed the zero rate to be applied to certain food supplement products (vitamins, minerals and fish oils). This concessionary approach expanded as the market developed over the years and resulted in the zero rating by Revenue of further similar products, including products other than vitamins, minerals and fish oils.
Revenue has acknowledged that the scope of its concessionary approach broadened progressively over time to the point that it had become increasingly difficult to maintain an effective distinction between food supplement products that could benefit from the zero rate and those that were standard rated. Revenue acknowledges that this concessionary approach was unsatisfactory and led to diverging and inconsistent practices. There were continuous efforts by elements in the industry to expand its scope to include products that should be standard rated, including products claiming to enhance male fertility, promote hair growth, boost tanning, avoid a hangover and reduce stress.
Following complaints from the Irish Health Trade Association (IHTA), Revenue conducted a comprehensive review of the VAT treatment of food supplement products, including getting an expert report on the definition of food for the purposes of the VAT Consolidation Act. The expert prepared a detailed, scientific report that concluded that food supplement products are not conventional food. Based on the expert report and its own legal analysis, Revenue concluded that the status quo was no longer sustainable. Following the review, Revenue engaged with my Department concerning policy options that might be considered in the context of Finance Bill 2018. The relevant legislation was not changed in Finance Bill 2018 and therefore Revenue issued new guidance in December 2018 which removed the concessionary zero rating of various food supplement products with effect from 1 March 2019. The removal of the concession will only apply on a prospective basis and will not be applied retrospectively by Revenue.
Following representation from Deputies and from the industry, I wrote to Revenue outlining my plans to examine the policy and legislative options for the taxation of food supplement products in the context of Finance Bill 2019. Revenue responded by delaying the withdrawal of its concessionary zero rating of the food supplement products concerned until 1 November 2019. This allowed time for my Department to carry out a public consultation on the taxation of food supplement products.
The public consultation ran from 18 April to 24 May 2019 and sought input from a wide range of interested parties, including from health and nutrition experts and the Minister for Health. In total, 121 submissions were received. This included submissions from individuals, businesses, lobby groups and a political party. The results of the consultation were included in the recently published Tax Strategy Group paper on VAT. The options set out in the TSG paper are the only options available; either the standard rate is maintained, or the reduced rate is introduced.
I will announce the rate of VAT for food supplements with the publication of the Finance Bill 2019.
91. Deputy Pearse Doherty asked the Minister for Finance if the recent move to close the revaluation loophole upon REIT cessation, section 705P requiring that the relevant REIT has to be in operation for over 15 years before it gets this preferential treatment, will be applicable to the sale of Green REIT to a company (details supplied). [42515/19]
Amharc ar fhreagraFinance Act 2013 introduced the regime for the operation of Real Estate Investment Trusts (REITs) in Ireland. The function of the REIT framework is not to provide an overall tax exemption but rather to facilitate collective investment in rental property by removing a double layer of taxation which would otherwise apply on property investment via a corporate vehicle.
A number of amendments were introduced to the REIT framework via Financial Resolution on Budget night. The purpose of these amendments is to ensure that the appropriate level of tax is being collected.
One such amendment corrects an unintended anomaly in legislation, whereby a distribution comprised of the proceeds of a property disposal was not subject to dividend withholding tax.
In addition, an existing provision whereby a deemed disposal and re-basing of property values occurs should a company cease to be a REIT has been limited to apply only where the REIT has been in operation for a minimum of 15 years. This is in line with the original policy intention of encouraging stable long-term investment in the rental property market.
In relation to the further details supplied, as the Deputy is aware, I am not at liberty, nor is it appropriate for me, to discuss the tax affairs of individual companies.
92. Deputy Pearse Doherty asked the Minister for Finance the reason a stamp duty charge of 7.5% is not applicable in which a scheme of arrangement, in accordance with Part 9 of the Companies Act 2014, is used for the acquisition of a company. [42516/19]
Amharc ar fhreagraBudget 2020 introduced a measure to impose a stamp duty charge where the acquisition of a (target) company is effected by means of a particular type of scheme of arrangement under Part 9 of the Companies Act 2014, which came into effect on 9 October 2019 by way of financial resolution. This type of scheme of arrangement involves the (target) company entering into an arrangement whereby it cancels its existing shares and issues new shares to the acquiring company. The shareholders of the target company are paid for the cancellation of their shares rather than for the shares themselves. The usual stamp duty charge in respect of the sale or transfer of shares did not apply as this type of arrangement does not involve a conveyance or transfer on sale. In contrast, a takeover of the target company by means of the direct purchase or transfer of its shares would attract a stamp duty charge at the 1% rate that applies to share sales or transfers.
The new measure applies stamp duty at the rate of 1% on the value of shares that are cancelled as if an actual transfer of shares had taken place. It would not be appropriate to apply the stamp duty rate of 7.5%, which is the rate that applies to the sale or transfer of non-residential property, as the transaction is in substance the acquisition of a company’s shares which attracts a stamp duty charge at the rate of 1%.
93. Deputy Niamh Smyth asked the Minister for Finance the number of persons who have applied for the residential development stamp duty refund scheme; the number who have been successful in their application; and if he will make a statement on the matter. [42521/19]
Amharc ar fhreagraSection 83D of the Stamp Duties Consolidation Act 1999 provides for a refund (through the Residential Development Stamp Duty Refund Scheme) of up to two thirds, where the rate of Stamp Duty paid on the transfer of non-residential land is 6%, and the land is used to develop dwelling units.
I am advised by Revenue that the number of persons that have applied for a refund under the Scheme (to 4 October 2019) is 721. Of these, 699 persons have received refunds. The applications made by the other 22 persons are being processed.
Revenue has also advised me that more than one application for a refund under the Scheme can be received from the same person, for example an agent applying on behalf of multiple clients. The number of actual applications received (to 4 October 2019) is 835. Of these, 810 applications have received refunds. The other 25 applications are being processed.
94. Deputy Anne Rabbitte asked the Minister for Finance if he will hold an industry-wide retail export scheme consultation which will include a review of the €175 threshold that will apply to the VAT retail export scheme in the event of a no-deal Brexit; and if he will make a statement on the matter. [42537/19]
Amharc ar fhreagra95. Deputy Anne Rabbitte asked the Minister for Finance his policy in respect of the retail export scheme in particular the proposed €175 VAT refund threshold in the event the UK leaves the EU without a deal; and if he will make a statement on the matter. [42538/19]
Amharc ar fhreagraI propose to take Questions Nos. 94 and 95 together.
The Retail Export Scheme allows persons who are resident outside the EU and who make purchases of goods in the EU to avail of a refund of the VAT charged on these goods where the goods are exported from the EU by the tourist or traveller within three months of purchase. The UK will become a 3rd country and UK residents will become eligible for the scheme post Brexit.
The Government's intention is to provide reciprocal protection to the UK if they decide to restrict the introduction of their VAT Retail Scheme, in the event of a no-deal Brexit. However should the UK apply an unrestricted Retail Export Scheme, Ireland will not commence the precautionary sections, and an unrestricted VAT Retail Export Scheme will operate between jurisdictions.
The proposed measures, while precautionary, were influenced by i) the potential for significant Exchequer impacts as a result of the expansion of the schemes, ii) the potential impacts on Government health and welfare policies and iii) the potential risk of fraud in the application of the VAT Retail scheme.
96. Deputy Catherine Connolly asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 54 of 8 October 2019, the cost of the works; and if he will make a statement on the matter. [42358/19]
Amharc ar fhreagraThe targeted maintenance work carried out in the Meelick Weir area was completed in September, during the appropriate seasonal window for this type of work. Work is currently underway for the appropriate management and disposal of the removed material. The total cost for this work is currently estimated at €30,000.
97. Deputy Peter Burke asked the Minister for Education and Skills if Bus Éireann will be instructed to provide an urgent update on a case (details supplied); and if he will make a statement on the matter. [42368/19]
Amharc ar fhreagraSchool Transport is a significant operation managed by Bus Éireann on behalf of the Department. In the 2018/2019 school year over 117,500 children, including over 13,000 children with special educational needs, were transported in over 5,000 vehicles on a daily basis to primary and post-primary schools throughout the country covering over 100 million kilometres at a cost of over €200m in 2018.
The purpose of my Department's School Transport Scheme is, having regard to available resources, to support the transport to and from school of children who reside remote from their nearest school.
Bus Éireann has been requested to provide a report on the case referred to by the Deputy and further information will be provided to the Deputy once this report is received.
98. Deputy Kevin O'Keeffe asked the Minister for Education and Skills when a child (details supplied) will receive an appointment for a specific assessment. [42412/19]
Amharc ar fhreagraI can inform the Deputy that my Department’s National Educational Psychological Service provides educational psychological support to all primary and post-primary schools. This involves direct support in the event of a critical incident, access to national and regional support and development work to build school capacity to support students, access to a NEPS psychologist for responses to queries arising, and access to individual pupil casework via a NEPS psychologist or through the Scheme for the Commissioning of Psychological Assessments. (SCPA).
In common with many other psychological services and best international practice, NEPS has adopted a consultative model of service. The focus is on empowering teachers to intervene effectively with pupils whose needs range from mild to severe and transient to enduring. Psychologists use a problem solving and solution oriented consultative approach to maximize positive outcomes for these pupils. NEPS encourages schools to use a continuum based assessment and intervention process whereby each school takes responsibility for initial assessment, educational planning and remedial intervention for pupils with learning, emotional or behavioural difficulties. Teachers may consult their NEPS psychologist should they need to at this stage in the process. Only in the event of a failure to make reasonable progress, in spite of the school's best efforts in consultation with NEPS, will the psychologist become involved with an individual child for intensive intervention or assessment.
This system allows psychologists to give early attention to urgent cases and also to help many more children indirectly than could be seen individually. It also ensures that children are not referred unnecessarily for psychological intervention.
Should the parents of the child, the subject of the Deputy's question, have specific concerns about his educational progress I would advise that they should, in the first instance, speak to the Principal of the school concerned, with a view to raising these concerns with the assigned NEPS psychologist for the appropriate individual intervention.
I hope this clarifies the matter for the Deputy.
99. Deputy Maureen O'Sullivan asked the Minister for Education and Skills the remedial works required to deal with the pyrite issues in schools (details supplied); if students will be expected to vacate the schools when works take place; and the timeframe for same. [42346/19]
Amharc ar fhreagraI am pleased to inform the Deputy that any structural issues arising in a school building as a result of pyrite are being dealt with under my Department's Emergency Works Scheme (EWS). In this regard funding of €84,750.00 was spent on the second school in question in 2017.
I can also confirm that both schools referred to by the Deputy have been instructed to procure consultants to draw up a scope of works and an estimate of costs to rectify the the pyrite issues. This has been completed in one case and the school authority is liasing with the schools insurance provider regarding the works and my Department is currently awaiting the consultants report pertaining to the other school. Therefore the deputy will appreciate that as this matter is still being dealt with by external bodies we are unable to give a timeline for delivery of the works at present. Additionally, as we cannot yet confirm how the works will be carried out, we cannot say whether or to what extent the works will impact on the school.
In general if a school authority identifies any issues with a building that have been caused by pyrite, it is open to it to submit an application for funding under my Department’s Emergency Works Scheme. Application forms are available on my Department’s website.
100. Deputy Maureen O'Sullivan asked the Minister for Education and Skills the status of a grant for the refurbishment of a school (details supplied). [42347/19]
Amharc ar fhreagraAs the Deputy will be aware, a building project for the school in question is included in my Department's School Building Programme to be delivered as part of the National Development Plan (NDP).
My Department has carried out a technical site visit to the school and is now in the process of formulating an accommodation brief for the building project. Once this process has been completed, my Department will be in further contact with the school Patron.
