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Bruton, Richard

Tuesday, 15 October 2013

Dáil Éireann Debate
Vol. Nbr.

Financial Resolution No. 6: Income Tax (Continued)

I thank the Deputies who contributed to the debate which strayed well beyond what is a tax measure.More Button

Exactly. It is about choices.More Button

The choice today is to allocate the tax relief available for health insurance to those who most need it, and that is the principle being applied. The total cost of this measure represents approxim...More Button

I have examples of the impact of the change. With a policy broadly similar to the old plan C covering two adults and four children, the impact will be less than 2% on the premia. By contrast, t...More Button

-----would pay a much larger proportion of this measure. This is about allocating the available tax relief for health insurance in the most equitable way-----More Button

-----which is what we are seeking to do in this measure. Of course, we would like to be in a position where we would not have to find €2.5 billion in this year's budget but that is where we are, a...More Button

It is important to bear in mind the background to this, and most people have spoken about that. There are 1.9 million people with free access to both primary and secondary care, with approximate...More Button

One must consider this in the context of the economics. If the taxpayer picks up 20% of the cost of the upper packages, regardless of what is put into them, there will be a major incentive for i...More Button

We are trying to make core services universally available on an equitable basis, and this is quite consistent with that goal. Deputy Naughten asked why there is a move to require private patients ...More Button

Many people spoke in the debate about the collapse of health insurance but the data does not support that. From December 2008 to June 2012, when the cost of health insurance increased by 86%, th...More Button

That is the number of people taking insurance.More Button

I am only giving the figures to the Deputies. They can interpret as they wish, and elasticity is only a term of description. It is not charged with anything else. The truth is there has not been...More Button

It is an issue about which we must be conscious and I hope a measure like this will bring about a more cost-conscious insurance sector responding in a market-effective way. Against a background of...More Button

I move:More Button

Financial Resolution No. 7: Income Tax

Current tax law provides for an exemption for a part of the interest paid on special term accounts offered by banks and special term share accounts offered by credit unions. In the case of a mediu...More Button

Financial Resolution No. 7 removes these exemptions from special term accounts that are opened on or after 16 October. This is to ensure that such accounts cannot be used to avoid payment of dep...More Button

I presume the reason there is no yield is because it is an anti-evasion measure to avoid people shifting money. In that sense, it is not designed to generate revenue.More Button

I beg the Deputy's pardon.More Button

The provision for the increase in the deposit interest retention tax to 41% will be contained in the finance Bill. That would be normal. I will confirm the position with PRSI-----More Button

I am trying to provide the House with accurate information. The information has been provided already and it is just confirmed by the note to be accurate. That might be reassuring for the Deputy.More Button

That is the situation.More Button

PRSI is a matter for the Minister for Social Protection who will bring forward legislation shortly to deal with the situation for 2014. It is my understanding that PRSI will be charged on DIRT inc...More Button

Certain State saving accounts are tax free and are not subject to DIRT. They are savings certificates, savings bonds, instalment savings, final payment on national solidarity bonds and prize bon...More Button

Financial Resolution No. 7: Income Tax (Continued)

I thank the Deputies. Let me work backwards. I read out the note, which basically states PRSI will not apply in respect of PAYE and where one's PAYE-related income is insignificant in amount. Th...More Button

For self-employed people who would be chargeable, PRSI would apply.More Button

Let me deal with the point that Deputy Higgins made. There are two categories subject to an exemption, one of which is a three-year deposit account. The first €480 in interest earned on the acc...More Button

There is the man who knows how to calculate the odds.More Button

On Deputy Richard Boyd Barrett's point, those who already have the accounts in question will continue to be subject to the exemption. Therefore, if someone has just bought a three-year product, ...More Button

The information I just gave is inaccurate. These are figures for the end of the account, so the €480 figure is for three years rolled up and the €635 figure is for five years rolled up. Therefore...More Button

My understanding is that what has been introduced is PRSI on unearned income but PAYE workers who have money coming from a non-PAYE source that is of an insignificant amount do not pay PRSI on that...More Button

The note I have refers to Revenue Commissioner practice. Obviously interest rates are very low at the moment. On €10,000 in an ordinary deposit account for example, one might only earn €100 in in...More Button

No. That is the point. It would not be taken out in the case of a PAYE worker. In that case, a PAYE worker is not a chargeable person and will not have a PRSI liability.More Button

Technically, we are only debating the narrow point, as Deputy Michael McGrath stated, of closing off the possibility of opening such accounts and the thresholds of €480 and €635. Some Deputies ask...More Button

In respect of Deputy Mathews’s concerns, there are several products that are not subject to DIRT. These include savings certificates, savings bonds, instalment savings, final payment on the nati...More Button

The change we are making with this Financial Resolution is that these products cannot be opened with a deductible end from now on. It is an anti-avoidance measure.More Button

  Question, "That Financial Resolution No. 7 be agreed to", put and declared carried.More Button

I move:More Button

Financial Resolution No. 8: General

  Written Answers follow Adjournment.More Button

  The Dáil adjourned at 10.55 p.m. until 10.30 a.m. on Wednesday, 16 October 2013.More Button

Foreign Direct Investment

Was asked: if he will provide details of the inventive schemes available from his Department to encourage foreign direct investment in Ireland in the green energy sector.More Button

Was asked: if he will detail incentivisation schemes available from his Department to encourage foreign direct investment in Ireland in the green energy sector; and if he will make a statement on the matter.More Button

I propose to take Questions Nos. 98 and 99 together.

  IDA Ireland actively markets Ireland as an investment location for international companies in the green energy/renewable te...More Button

IDA Jobs Data

Was asked: the total number of jobs promoted by the Industrial Development Agency relating to the field of customer support for each year since 2007.More Button

Was asked: the jobs promoted by the Industrial Development Agency relating to the field of customer support, as a percentage of total jobs promoted by the IDA for each year since 2007.More Button

I propose to take Questions Nos.100 and 101 together.

  The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the enterprise deve...More Button

Was asked: the number of jobs promoted by the Industrial Development Agency for rates of pay less than €10,000 per annum; between €10,000 and €20,000; and in salary bands of €10,000 for those more than €150,0...More Button

The Forfás Annual Employment Survey reports on job gains and losses on companies that are supported by the industrial development agencies. Figures are compiled on an annual basis and aggregated a...More Button

Intellectual Property Protocol

Was asked: if his attention has been drawn to a study published on 1 October 2013 by the European Patents Office and the Office for the Harmonisation of the Internal Market that 35% of all European economic a...More Button

EU-US Trade

Was asked: his views on the current state of negotiations of a transatlantic trade and investment partnership between the EU and US; his views on whether the partnership should include clauses empowering EU a...More Button

Negotiations between the EU and the US on a Transatlantic Trade and Investment Partnership (TTIP) began formally in July, with the first round of negotiations held in Washington in the week beginni...More Button

I am conscious of the issues arising in relation to Investor-State Dispute Settlement. It is clear that the State has the right to regulate in areas such as public health, environmental and soci...More Button

Tobacco Control Measures

Was asked: if his Department is participating in the high level implementation group to oversee the project plan for the introduction of plain packaging of tobacco products; if his officials will highlight th...More Button

IDA Funding

Was asked: the annual budget for the Industrial Development Agency.More Button

Was asked: the annual budget for the Industrial Development Agency; and if he will make a statement on the matter.More Button

I propose to take Questions Nos. 105 and 106 together.

  The total Exchequer allocation for IDA for the year 2013, as published in Revised Estimates Allocation for 2013 (REV) is ...More Button

IDA Staff

Was asked: the number of personnel in whole-time equivalent terms in the Industrial Development Agency in each of the following earnings brackets: less than €20,000, €20,001 to €30,000, €30,001 to €40,000, €4...More Button

Information in relation to employees of IDA Ireland is a day to day operational matter for the agency and I have requested that IDA Ireland respond directly to the Deputy. More Button

Joint Labour Committees Abolition

Was asked: further to his recent announcement regarding the re-introduction of the joint labour committee system in a reduced and amended manner, if he will provide clarification regarding his intention to ab...More Button

On 1 October last, I published the Report of the Labour Court’s Review of the Joint Labour Committee (JLC) system. The Industrial Relations (Amendment) Act 2012 provides that reviews of each JLC be...More Button

The usual practice in JLCs in terms of convening meetings is for the worker representatives to seek a meeting to review pay and conditions of employment in terms of the remit of the particular JL...More Button

Accordingly, as the JLC for Dublin and Dun Laoghaire hotels was never active, the Labour Court concluded that there was no demand for such in Dublin, (or in the County Borough of Cork, which has ...More Button

The Hotels (Other excluding Cork) JLC is to be retained, with an amended ERO to provide clarity as to what employees it applies to.More Button

The amended Establishment Order for a Hotels JLC will take account of hotel employees that work in leisure facilities and those employed by the hotel or a related business engaged in the provisio...More Button

This amendment provides clarity to who is covered by the JLC and removes the ‘incidental’ wording previously used to encompass hotel employees who worked in the range of services provided by hote...More Button

The Report of the Labour Court sits very much within the context of the continuous process of reform in an area of industrial relations and wage setting whose objective is balancing improvement i...More Button

The Industrial Relations Act, 2012, was very much part of the process of reform and introduced flexibility for employers in the context of JLCs and Establishment Orders and set specific parameter...More Button

For example, in proposing EROs that will give general effect to JLC proposals, the Labour Court must have regard to the legitimate interests of employers and workers, including:More Button

- the financial and commercial interests of the employers,More Button

- the desirability of agreeing and maintaining efficient and sustainable work practices,More Button

- the desirability of maintaining competitiveness,More Button

- the desirability of agreeing and maintaining fair and sustainable minimum rates of remuneration appropriate to the sector,More Button

- the levels of employment and unemployment in the sector in question,More Button

- the general level of wages in comparable sectors, andMore Button

- The current national minimum hourly rate of pay, and the appropriateness of fixing a higher statutory minimum hourly rate of pay.More Button

The Act also made provision to introduce enhanced flexibility for employers to enable them respond to changing economic circumstances in that companies are able to derogate from EROs in cases of ...More Button

It is important to remember that the JLC Establishment Orders envisaged will provide only a framework within which employers and employee representatives can come together voluntarily and negotia...More Button

In addition, a key element of the reforms provided for in the Act is the introduction of provisions to ensure comprehensive Oireachtas and Ministerial oversight of the JLC system.More Button

This process sits very much within the context of Ireland's voluntarist system of industrial relations.More Button

Tax Compliance

Was asked: if he will remove the condition in the Consolidated Companies Act 2012 whereby small and medium businesses are subject to a compulsory audit for late filing of returns and instead apply a financial...More Button

I requested that the matter of loss of audit exemption due to late filing of annual returns be examined by the Company Law Review Group (CLRG) in 2011. This request was with a view to receiving a r...More Button

Section 53 of the Companies (Auditing and Accounting) Act 2003 sets out that a company, having met the conditions in section 32 (3) of the Companies (Amendment) (No. 2) Act 1999, is not entitled ...More Button

Companies Law Issues

Was asked: the progress that has been made in considering an extension of the audit exemption to companies limited by guarantee, based on the recommendations of the Company Law Review Group 2009, to facilitat...More Button

Audit exemption was first introduced under the Companies (Amendment) (No.2) Act 1999, allowing private companies which satisfy certain conditions to be exempt from the audit requirements. Currently...More Button