Written Answers Nos. 48-67
48. Deputy Louise O'Reilly asked the Taoiseach and Minister for Defence if the contract to supply new motorcycles for the Defence Forces escort of honour has been put to tender; and when he expects the new motorcycles to come into the fleet. [43869/19]
Amharc ar fhreagraMy priority as Minister with Responsibility for Defence is to ensure that the operational capability of the Army, Air Corps and Naval Service is maintained to the greatest extent possible so as to enable the Defence Forces to carry out their roles as assigned by Government both at home and overseas.
The acquisition of new equipment for the Defence Forces remains a clear focus for me. Future equipment priorities for the Army, Air Corps and Naval Service are considered in the context of the White Paper on Defence as part of the capability development and equipment priorities planning process. The principal aim over the period of the White Paper will be to replace and upgrade, as required, existing capabilities in order to retain a flexible response for a wide range of operational requirements.
The Defence Forces fleet of vehicles is subject to regular review to ensure that it meets operational requirements both at home and overseas. In this regard a requirement for the replacement of Defence Forces Escort of Honour Motorcycles was identified due to the current fleet reaching end of life.
A tender was published on OJEU through eTenders on 14 June 2019, and following completion of the tender evaluation process a contract was awarded to Honda Distributors Ireland on the 27 September 2019. The contract value is for €380,000 ex VAT for the delivery of 48 motorcycles. The Defence Forces expect to take delivery of the vehicles in Q4 2019.
49. Deputy Jack Chambers asked the Taoiseach and Minister for Defence the veterans organisations he has engaged with and met in a formal and informal capacity; and if he will make a statement on the matter. [43978/19]
Amharc ar fhreagraMy Department formally recognises two veterans’ organisations that represent all former personnel, namely, the Irish United Nations Veterans Association (IUNVA) and Óglaigh Náisiúnta na hÉireann (O.N.E, the Organisation of National Ex-Service Personnel).
My officials meet on a quarterly basis with representatives of both organisations and the Association of Retired Commissioned Officers (ARCO) to discuss issues of concern to Defence Forces Veterans. In December I meet the three Veterans Associations formally at separate meetings.
I meet and engage with our Veterans through my attendance at the O.N.E. Fuchsia fundraising campaign, and at O.N.E., IUNVA and ARCO Remembrance Day ceremonies subject to my availability.
My Department and the Defence Forces work with O.N.E. to bring to fruition their plans to establish additional Veteran Support Centres around the country. I officially opened the Veterans Support Centre in Athlone last October and I will attend, subject to my availability, at further such events.
Each year I attend the Veterans' Day in which members of IUNVA, O.N.E., ARCO and many other retired members of the Defence Forces from various other veterans organisations participate. After the formal proceedings have been completed, I meet many veterans on an informal basis.
50. Deputy Jack Chambers asked the Taoiseach and Minister for Defence if all members of the Defence Forces who are being discharged are receiving their LA89 prior to formal discharge; and if he will make a statement on the matter. [43979/19]
Amharc ar fhreagraI have been informed by the relevant Military Authorities, that the circumstances and manner in which a Certificate of Service LA89 is issued to a member of the Permanent Defence Force (PDF) on discharge, is governed by Defence Forces Regulation, A10. This Regulation sets out the Officer or prescribed military authority to direct the discharge.
In so far as is possible, all efforts are made by the military authorities to ensure that the LA89 is issued in accordance with the Regulation.
51. Deputy Jonathan O'Brien asked the Taoiseach and Minister for Defence the number of financial settlements reached by his Department and statutory bodies within his remit nationally; the number which included confidentiality clauses in each of the past five years by organisation; and if he will make a statement on the matter. [44059/19]
Amharc ar fhreagraThe information sought by the Deputy could not be compiled within the timeframe available to answer the question. I will revert to the Deputy on this matter in due course.
52. Deputy Jonathan O'Brien asked the Tánaiste and Minister for Foreign Affairs and Trade the number of financial settlements reached by his Department and statutory bodies within his remit nationally; and the number which included confidentiality clauses in each of the past five years by organisation. [44063/19]
Amharc ar fhreagraThe details requested by the Deputy on the financial settlements reached on behalf of my Department and confidentiality clauses associated with these settlements are set out in the following table.
|
Year |
Number of settlements |
Number of confidentiality clauses |
|
2014 |
2 |
|
|
2015 |
5 |
1 |
|
2016 |
1 |
|
|
2017 |
2 |
1 |
|
2018 |
7 |
3 |
|
2019 |
4 |
2 |
There are no statutory bodies under the remit of my Department.
53. Deputy Dara Calleary asked the Tánaiste and Minister for Foreign Affairs and Trade the allocation to overseas development aid in 2020; the expected percentage this will be in respect of the ODA-GNI target; and if he will make a statement on the matter. [44163/19]
Amharc ar fhreagraIreland's development cooperation programme is an integral part of our foreign policy and an important statement of our global citizenship. For 2020, the Government has allocated almost €838 million for Official Development Assistance (ODA) - an increase of just under €21 million on the 2019 budget allocations.
Based on the Department of Finance Budget Day forecast for GNI 2020, we expect the ODA/GNI % to be in the region of 0.31%.
Budget 2020 was prepared in exceptional circumstances and on the basis of Government assessments of the implications of a possible no deal Brexit. In that context, the 2020 target of €838 million is a significant budgetary commitment by the Government to international development. The additional resources provided continue the upward trajectory in allocations to ODA over the past six years, and provide the basis to begin to grow Ireland's development cooperation programme and to deliver on some of the initiatives and commitments in A Better World, Ireland’s policy for international development.
As outlined in the Global Ireland 2025 Strategy and in A Better World, the Government remains committed to sustained, substantial and carefully managed increments in ODA in order to deliver 0.7% by 2030.
54. Deputy Dara Calleary asked the Tánaiste and Minister for Foreign Affairs and Trade the expected budget for the emigrant support programme in 2020; and if he will make a statement on the matter. [44164/19]
Amharc ar fhreagraOn Budget Day, 8 October 2019, the gross expenditure allocation for the Department and the allocations by high-level expenditure programmes were published. The detailed breakdown by subhead and by individual programme are yet to be finalised and will be published in the Revised Estimates Volume 2020 due to be published in mid-December 2019.
The Government remains committed to supporting our most vulnerable citizens abroad through the Emigrant Support Programme. It is also the prinicipal means though which we maintain and celebrate the deep ties of culture and heritage that connect us to our diaspora communities around the world.
55. Deputy Dara Calleary asked the Tánaiste and Minister for Foreign Affairs and Trade the contribution of Ireland to the trust fund for Africa; and if he will make a statement on the matter. [44165/19]
Amharc ar fhreagraThe European Union Emergency Trust Fund for stability and addressing root causes of irregular migration and displaced persons in Africa is an element of a comprehensive package of EU initiatives to support stability across North Africa, the Horn of Africa and the Sahel/Lake Chad region. The aim of the Trust Fund is to contribute to tackling the root causes of instability, forced displacement and irregular migration.
This Trust Fund was launched at the 2015 EU-Africa Summit on migration in Valletta, Malta for the 2016-2020 period. Over €4.6 billion has been pledged for the Trust Fund by the EU and EU Member States.
At the time of its launch, Ireland made a commitment to provide €3 million to the Trust Fund. At the European Council meetings in October 2017 and June 2018, the Taoiseach announced further increases in Ireland's contribution, following calls for additional funding from EU Member States in light of the pressing needs identified. This brought Ireland's total commitment to €15 million.
To date, Ireland has provided €10.95 million of this total commitment to the Trust Fund, with the balance of €4.05 million to be disbursed before the end of 2020.
56. Deputy Dara Calleary asked the Tánaiste and Minister for Foreign Affairs and Trade the expected expenditure in 2020 on the peace and reconciliation fund; and if he will make a statement on the matter. [44166/19]
Amharc ar fhreagraThe Reconciliation Fund, which is administered by my Department, was established in 1982 to support civil society organisations in creating better understanding between the people and traditions of the island of Ireland, and also between Ireland and Britain. Over €54 million has been allocated to more than 2,000 projects during this time.
As part of the 2014 Stormont House Agreement, the Government committed to the continued allocation of €2.7 million annually to the Reconciliation Fund.
The annual budget for the Fund was €2.7 million in 2018. In May 2018, on the 20th Anniversary of the referendums on the Good Friday Agreement, I announced that it would be increased to €3.7 million from 2019 onwards, reflecting the Government's unwavering commitment to the Agreement and to supporting the vital work of reconciliation being carried out by civil society and groups in Northern Ireland and across this island. It is my intention that the budget for the Reconciliation Fund will be retained at this significantly increased level for 2020.
More information on the Reconciliation Fund is available on my Department’s website at: https://www.dfa.ie/about-us/funding/reconciliation-fund/
57. Deputy Michael McGrath asked the Minister for Finance the status of the Central Bank (Amendment) Bill; when he expects the heads of Bill to be completed; when pre-legislative scrutiny will take place on the Bill; when he expects the Bill to be published; and if he will make a statement on the matter. [43856/19]
Amharc ar fhreagraAs I have stated recently in this House, the need to rebuild trust in the Banking sector is a priority for this Government. The Central Bank (Amendment) Bill will increase individual accountability in the financial sector. The proposed legislation will drive positive changes in terms of wider banking culture and enhanced accountability, while simplifying the taking of sanctions against individuals who fail in their financial sector roles.
The Bill will primarily address the recommendations put forward by the Central Bank of Ireland in relation to individual accountability in its Section 6A Report on the Behaviour and Culture of the Irish Retail Banks.
As the Deputy will be aware I received the agreement of my Government colleagues on 18th June last to begin the process of drafting heads of this Bill. This follows extensive preparatory work by my officials, in consultation with the Central Bank, which has continued in recent months. This included consideration of the lessons to be learned from the UK’s Senior Managers Regime and Conduct Standards, given the close relationship between the two financial sectors and the similar common law legal system.
The legal considerations of the Bill are complex as the issues it addresses go to the core of individuals' rights to an adequate means of a livelihood, and the Bill's provisions are required to be constitutionally sound in the event of legal challenge. Officials from my Department have engaged with the Attorney General's Office for guidance on the approach to be taken. The Department and the Central Bank have been engaging on an ongoing basis in order to progress the policy matters to put forward sound principles in order to achieve the positive aims of the legislation.
It is my intention to bring forward draft heads of Bill to Government for approval later this year and to then progress the Bill for debate in the Houses including pre-legislative scrutiny. However, this timetable remains very much subject to Brexit developments and other competing legislative priorities.
58. Deputy Michael McGrath asked the Minister for Finance the scope of the Central Bank (Amendment) Bill; if it will incorporate non-bank financial service providers; if it will incorporate credit union managers and boards; and if he will make a statement on the matter. [43857/19]
Amharc ar fhreagraThe purpose of the Central Bank (Amendment) Bill is to increase individual accountability in the financial sector. The proposed legislation will drive positive changes in terms of wider banking culture, greater delegation of responsibilities, and enhanced accountability while simplifying the taking of sanctions against individuals who fail in their financial sector roles.
My officials have done extensive preparatory work on this legislation, in consultation with the Central Bank and the Office of the Attorney General, and this work is ongoing. There remain a number of outstanding policy decisions to be taken, including in relation to the precise scope of the Senior Executive Accountability Regime (SEAR) and the Conduct Standards. The SEAR will ensure that senior executives are held responsible for their actions and/or inactions. The Conduct Standards will set out the standards of honesty, competence, and professionalism expected in the financial services industry in Ireland.
The legal considerations of the Central Bank (Amendment) Bill are complex and touch on individuals' constitutional rights, including the right to an adequate means of a livelihood. I can assure the Deputy that I will be giving careful consideration to the outstanding policy decisions, which will be reflected in the Heads of Bill which are in preparation.
59. Deputy Niall Collins asked the Minister for Finance if advice will be provided on a matter raised in correspondence (details supplied); and if he will make a statement on the matter. [43920/19]
Amharc ar fhreagraI am aware of the issues facing some businesses when it comes to the affordability and availability of insurance, and I have a lot of sympathy with regard to the business in the details supplied, which I agree provides an important service in its particular field.
I understand that the issue related to in the details supplied has been exacerbated by the announcement of a UK-based insurer, over the summer, that they were withdrawing from the Irish market. The company is a UK-authorised company and conducted its business in the Irish market on a Freedom of Services basis, and cited Brexit as its primary reason for its departure. It is understood however that certain parts of the company’s leisure book were not profitable due to the cost of claims over the last number of years so it is likely that this has played a key part in its decision to exit the Irish market.
Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the price or the level of cover to be provided either to consumers or businesses.
Nonetheless, insurance reform remains a priority for the Government. The Cost of Insurance Working Group (CIWG), which was established in July 2016, has produced two reports, and is continuing to work to implement the recommendations of the Cost of Motor Insurance Report and the Cost of Employer and Public Liability Insurance Report. The most recent Update Report, the ninth, was published in July and shows that the vast majority of the CIWG recommendations have been implemented. A key conclusion of the CIWG was that there was no single policy or legislative “silver bullet” to immediately address the problem of rapidly rising insurance premiums. Instead, a broad series of initiatives are required to address this problem.
Consequently, the Government has brought forward a number of pieces of legislation, arising from recommendations of the Cost of Insurance Working Group. These include the following:
- The Judicial Council Act 2019, which was enacted in July. This is a key piece of legislation in the context of insurance reform. It provides for the establishment of a Personal Injuries Guidelines Committee, which will introduce new guidelines to replace the Book of Quantum, following the formal establishment of the Judicial Council. It is now matter for the Judiciary to put in place the Judicial Council and to operationalise the Personal Injuries Guidelines Committee;
- The Central Bank (National Claims Information Database) Act 2018, which has established the National Claims Information Database in the Central Bank. This will increase transparency around the future cost of private motor insurance. The CBI is due to make its first report by the end of 2019, and will also make recommendations to me regarding potentially expanding its scope to include employer and public liability insurance;
- The Personal Injuries Assessment Board (Amendment) Act 2019, which makes important reforms to the Personal Injuries Assessment Board, by strengthening its powers around compliance with its procedures; and,
- Amendments to Sections 8 and 14 of the Civil Liability and Courts Act 2004 to align the timeframes by which claims should be notified to businesses with GDPR time limits on the keeping of CCTV footage to make it easier for businesses and insurers to challenge cases where fraud or exaggeration is suspected. These were introduced through the Central Bank (National Claims Information Database) Act 2018.
In relation to the enquiry into having an Irish public body provide insurance for the business in question, even on a temporary basis, I do not believe that this would provide a solution to those businesses impacted. Indeed, such an approach could actually decrease competition in the Irish insurance market, with insurers potentially deciding to cease insuring certain types of risks if there is a view that the State will insure these risks instead, particularly for lines of business which are considered to be unprofitable. This could in turn lead to a lack of choice for those seeking cover which could ultimately mean that the cost of insurance becomes even more expensive than it is now. Also, there is no reason to believe that the State would be any better at managing risks than private insurance companies, and as a result there potentially would be a large financial exposure to the State if significant losses were incurred. Finally, any State insurance scheme would be required to comply with the same prudential rules as private companies, thereby meaning that the cost of any insurance would still have to reflect the risk involved. In view of these factors, I am not convinced that a State-backed insurance scheme would be a panacea with regard to the cost or availability of insurance, either for small businesses or other categories of consumers.
I believe that this makes it more important that the levels of personal injury damages awarded in this country are brought more in line with those awarded in other jurisdictions. The establishment of the Judicial Council in the coming months is very important in this regard. This is why I allocated €1 million in Budget 2020 to allow for this. While the Government cannot interfere in the judiciary’s deliberations, I would expect that they will recognise the importance of this issue and prioritise its establishment accordingly and take account of the Personal Injuries Commission’s findings.
60. Deputy Catherine Martin asked the Minister for Finance his plans to change the VAT rate on food supplements as previously reported; the engagement he has had with business and civil society on such an increase in view of the potentially negative impacts on small businesses, persons with disabilities and other groups; and if he will make a statement on the matter. [43922/19]
Amharc ar fhreagraAs the Deputy is aware, food supplement products are currently subject to VAT at the standard rate of VAT (23%). 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. 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, the Minister for Health and the Health Products Regulatory Authority (‘HPRA’). In total, 121 submissions were received. This included submissions from individuals, businesses, lobby groups and a political party. My officials also met with representatives from industry on several occasions in 2018 and 2019. The results of the public consultation in 2019 were included in the Tax Strategy Group paper on VAT published on my Department's website. The options set out in the TSG paper included maintaining the standard rate of VAT or introducing a reduced rate of VAT.
I have decided to apply the reduced rate of VAT to all food supplement products. This means that from 1 January 2020, food supplement products which are currently liable at the standard rate of VAT of 23% would become liable to the reduced rate of VAT of 13.5%, while those currently concessionally zero rated will also become liable to the reduced rate rather than the standard rate.
It is important to clarify that foods for specific groups such as infant follow-on formulae and infant foods, foods for special medical purposes and specially formulated foods (e.g. total diet replacement for weight control) will continue to be zero rated as they are well established and defined categories of food that are essential for vulnerable groups of the population. Fortified foods, such as yoghurts and cereals fortified with vitamins and minerals, will also continue to be zero rated as they are food.
Folic acid, vitamin and mineral human oral products which are licenced or authorised as medicines by the Health Products Regulatory Authority (‘HPRA’) will continue to be zero rated under a different VAT provision for human oral medicines.
61. Deputy Anne Rabbitte asked the Minister for Finance the estimated cost of increasing the home carer’s tax credit by €100, €200, €300, €400, €500 and €600, respectively. [43931/19]
Amharc ar fhreagraI am advised by Revenue that the cost of increasing the Home Carer Tax Credit by the amounts requested by the Deputy are set out in the following table. I announced in my Budget speech that the Home Carer Tax Credit will be increased to €1,600 per year from 2020.
|
Home Carer Tax Credit Increase € |
Home Carer Tax Credit Value € |
First Year Cost €m |
Full Year Cost €m |
|
100 |
1,700 |
6.6 |
7.6 |
|
200 |
1,800 |
13.2 |
15.2 |
|
300 |
1,900 |
19.8 |
22.8 |
|
400 |
2,000 |
26.4 |
30.4 |
|
500 |
2,100 |
33.0 |
38.0 |
|
600 |
2,200 |
39.6 |
45.6 |
The above estimates have been generated by reference to 2020 incomes, calculated on the basis of actual data for the year 2017, which is the latest year for which tax returns are available. The estimates are provisional and may be revised. These estimates assume no behavioural response by taxpayers as a result of this change.
The Deputy may also be interested to note that a review of the Home Carer Tax Credit was carried out this year by my Department and Revenue following the methodology outlined in the Tax Expenditure Guidelines. It was published on Budget Day and is available on the Budget website at the link: http://www.budget.gov.ie/Budgets/2020/Documents/Budget/Report%20on%20Tax%20Expenditures%20Incorporating%20the%20Outcomes%20of%20Certain%20Tax%20Expenditure%20and%20Tax%20Related%20Reviews%20completed%20since%20c.pdf#page=74
The review was carried out to inform future policy making in relation to the Home Carer Tax Credit and forms part of the Department of Finance’s ongoing commitment to reviewing tax expenditures on a regular basis. It also fulfils commitments made in the 'First 5 Strategy: A Whole-of-Government Strategy for Babies, Young Children and their Families' and the 2019 Future Jobs Action Plan.
62. Deputy Michael McGrath asked the Minister for Finance the breakdown of the €300 million net tax measures in his budget 2020 statement; the breakdown of the €2.9 billion net budget package; and if he will make a statement on the matter. [43984/19]
Amharc ar fhreagraThe various tax measures introduced in Budget 2020 are listed in ‘Budget 2020 Tax Policy Changes’ published at Budget time. Excluding the Carbon tax — the proceeds of which will be ring-fenced for climate-related investment and to safeguard against any potential impacts for those most at risk — the net impact of these measures in 2020 is an increase in taxes of c. €340 million. If the Carbon tax measure is included, net tax increases amount to c. €430 million.
On the expenditure side, core gross voted current expenditure will increase by €2.6 billion from €59.3 billion to €61.9 billion, an increase of 4.3%. Core gross voted capital expenditure will increase by €0.8 billion from €7.3 billion to €8.1 billion, an increase of 10.8%. A breakdown of these increases is provided in ‘Budget 2020 Expenditure Report’ published at Budget time.
Taking the increase in core voted current and capital expenditure together, the increase in voted expenditure is €3.37 billion. The €2.9 billion Budget 2020 package is comprised of the increase in core spending (€3.37 billion) less the net tax package (€430m).
63. Deputy Michael McGrath asked the Minister for Finance if the €500 million intended for the rainy day fund in 2019 will be available in 2019 and 2020; if it makes up part of the €1.2 billion Brexit package; and if he will make a statement on the matter. [43988/19]
Amharc ar fhreagraIn my Budget 2020 speech, I set out that a disorderly Brexit is now the baseline scenario for budget planning purposes, and therefore a budget deficit is in prospect. On that basis, I decided that there will be no transfer of €500 million from the Exchequer this year to the National Surplus (Exceptional Contingencies) Reserve Fund (the Rainy Day Fund). However, as set out in my Budget speech, I will be transferring the previously earmarked €1.5 billion from the Ireland Strategic Investment Fund (ISIF) as this is not money that will have to be borrowed as it is currently in the ISIF.
I also set out that the funds transferred to the Rainy Day Fund can be deployed in the event that the economic impact of a disorderly Brexit is larger than assumed. The €500 million of Exchequer funding not being transferred to the Rainy Day Fund this year will remain as Exchequer cash balances and therefore will be used to meet the Exchequer funding requirement, such as for public spending priorities including Brexit related spending.
64. Deputy Michael McGrath asked the Minister for Finance if a decision has been made on the €500 million intended for the rainy day fund in 2020; if he still plans to invest €500 million in the rainy day fund in 2020; if not, if the €500 million forms part of the €1.2 billion Brexit package; and if he will make a statement on the matter. [43989/19]
Amharc ar fhreagraI have decided that there will be no transfer of €500 million from the Exchequer in 2020 to the National Surplus (Exceptional Contingencies) Reserve Fund (the Rainy Day Fund). The €500 million of Exchequer funding not being transferred to the Rainy Day Fund will remain as Exchequer cash balances and therefore will be used to meet the Exchequer funding requirement, such as for public spending priorities including any Brexit related spending.
For information, I should set out that this year I will be transferring the previously earmarked €1.5 billion from the Ireland Strategic Investment Fund (ISIF) to the Rainy Day Fund.
65. Deputy Michael McGrath asked the Minister for Finance if investment in the rainy day fund does not impact the general Government balance but does impact the Exchequer balance; if the indicative nominal budgetary package outlined in table 6 is after the funds for the rainy day fund have been invested; and if he will make a statement on the matter. [43990/19]
Amharc ar fhreagraThe Deputy is correct that annual transfers to the Rainy Day Fund will not impact on the General Government Balance, as they are considered a within government transaction and not counted as general government expenditure. However, such transfers will represent expenditure from the Exchequer account and will, hence, impact the Exchequer balance.
As I outlined on Budget day, a one-off transfer of €1.5 billion from the Ireland Strategic Investment Fund (ISIF) will be made to the Rainy Day Fund. As with the transfers from the Exchequer, the transfer from ISIF does not impact the General Government Balance. However, given that Budget 2020 was designed around the assumption of a no-deal Brexit, it was decided not to transfer €500 million to the fund from the Exchequer in 2019 or 2020. This was the prudent course of action considering the uncertainty which we face, as it ensures resources are available to put in place the supports to protect our economy from the impacts of Brexit.
As outlined in Table 9 of the Economic and Fiscal Outlook, a Brexit contingency of some €1.2 billion has been included in the budgetary arithmetic for 2020 and this is reflected in the projected Exchequer deficit of €1.6 billion for that year. Were the €500 million transfer to the Rainy Day Fund to be made, this would increase the Exchequer deficit by this amount, though there would be no impact on the General Government Balance.
66. Deputy Michael McGrath asked the Minister for Finance the estimated full-year yield of imposing excise duty of 5 cent, 10 cent, 15 cent and 20 cent per millilitre, respectively, on liquid containing nicotine used for vaping and e-cigarettes; and if he will make a statement on the matter. [43991/19]
Amharc ar fhreagraI have been advised by Revenue that there are no tax returns or other information on the volumes of vaping products or e-cigarettes in Ireland. Therefore there is no basis available on which to estimate a figure of the yield which would be returned if an excise duty was imposed on the liquid containing nicotine used for vaping and e-cigarettes.
67. Deputy Michael McGrath asked the Minister for Finance the estimated first and full year cost of removing USC up to €80,000; and if he will make a statement on the matter. [43993/19]
Amharc ar fhreagraI am advised by Revenue that the estimated first and full year cost to the Exchequer of increasing the current USC threshold from €13,000 to €80,000 is €1,673m and €1,922m, respectively.
The result of this change is that individuals with income of less than €80,000 will be exempt from USC, and that the current rates would continue to apply for individuals earning more than €80,000.
This estimate has been generated by reference to 2020 incomes, calculated on the basis of actual data for the year 2017, the latest year for which returns are available, adjusted as necessary for income, self-employment and employment trends.
The estimates are provisional and may be revised.
