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Noonan, Michael

Tuesday, 7 May 2013

Dáil Éireann Debate
Vol. Nbr.


Carbon Tax Collection

The Revenue Commissioners are responsible for the collection of the solid fuel carbon tax. This tax was introduced with effect from 1 May 2013 and will be collected on a self-assessed basis. In l...More Button

The tax is payable on the first supply in the State and will therefore be paid by importers and manufacturers at the earliest point possible in the domestic supply chain. Retailers that source t...More Button

If a supplier based in Northern Ireland is supplying households here directly, that supplier will be making a first supply in the State and must register for the carbon tax and make payment of th...More Button

A tax liability does not arise where an individual personally purchases and brings into the State solid fuel from a supplier in another member state, provided the fuel is for his or her own priva...More Button

It is important to note that the solid fuel carbon tax will become operational in a market that is already subject to strict regulation. Regulations to enable local authorities to control the ty...More Button

Carbon Tax Collection (Continued)

The Deputy has raised three issues in his supplementary question, one of which was the level of enforcement by the Revenue Commissioners and how they will co-operate with other authorities. They h...More Button

The third question is a budgetary matter. When I extended the carbon charge to solid fuels I said we would bring in only 50% of the tax this May, with the other 50% to be brought in next May. H...More Button

Tax Reliefs Application

Was asked: the reason persons who availed of Revenue job assist whilst enduring long-term unemployment, subsequently receive wage deductions; and if he will make a statement on the matter.More Button

Sections 472A and 88A of the Taxes Consolidation Act 1997 provide tax incentives for both employees and employers, to help the long-term unemployed to return to employment.More Button

The relief under Section 472A, commonly known as the Revenue Job Assist scheme, allows qualifying employees, in addition to their normal tax credits, to claim certain income deductions, including...More Button

Section 88A provides an associated tax incentive for employers. Employers are entitled to claim a double deduction in computing the profits of the trade or profession in respect of the first 3 y...More Button

In order to qualify for the Revenue Job Assist scheme, an individual must be unemployed for at least 12 continuous months prior to the date of commencement of the employment. They must also be i...More Button

There is no provision in the legislation for the amount of salary that an employer must pay. The level of remuneration an employee receives is a matter for the employee and their employer.More Button

Banking Sector Issues

Was asked: if he will provide a copy of the Crisis Management Manual, also known as the "Black Book", as it existed at the end of 2006 and-or as redrafted during the period August 2007 to September 2008 under...More Button

The document referred to by the Deputy in his question was drawn up by the Central Bank of Ireland to provide it with a set of processes and procedures to assist it in the management of a financial...More Button

Was asked: further to Parliamentary Question No. 69 of 24 April 2013, if the two advisers acting on behalf of AIB-EBS and the AIB-EBS pension fund were employees of the same firm. More Button

As I have previously advised the Deputy for commercial confidentiality reasons AIB has confirmed that it does not publicly disclose the details of contracts with individual external service provide...More Button

Property Taxation Collection

Was asked: if the valuation of property owned by the Office of Public Works and the State has been completed for the purposes of the local property tax; when he expects the review to be published; and if he w...More Button

The Local Property Tax (LPT) is a self-assessed tax. Therefore it will be a matter for the relevant State/public body as property owner to calculate the tax due based on its assessment of the mark...More Button

The Finance (Local Property Tax) Act 2012 (as amended) provides that where local authority owned properties are not exempt from LPT, the market value of any such property will be deemed to fall i...More Button

Property Taxation Administration

Was asked: if he will review the online system for the local property tax for properties in joint ownership to recognise both PPS numbers to ensure that the Revenue Commissioners know that the tax has been pa...More Button

An important aspect of the work undertaken by Revenue in the implementation of Local Property Tax (LPT) was the compilation of the first ever Register of residential properties in the State and the...More Button

Pension Provisions

Was asked: if Permanent TSB plans to wind up its defined benefit pension scheme; if he will confirm the number of scheme members who would be affected by such a move; and if he will make a statement on the ma...More Button

Was asked: if his approval has been given for the closure of the Permanent TSB defined benefit pension scheme; his views on the company's actions regarding same; and if he will make a statement on the matter.More Button

I propose to take Questions Nos. 125 and 137 together.More Button

As the Deputy will be aware the pension arrangements for the staff of Permanent TSB are a matter for the management of that company and for the trustees of the relevant pension schemes.More Button

I am informed by Permanent TSB that it currently operates 3 defined pension schemes for employees who joined the bank before 2007 and a defined contribution scheme for staff who joined the bank s...More Button

Permanent TSB has advised me that, in response to this significant problem and as part of a review of the overall cost base of the business, it has recently communicated to staff plans to discont...More Button

As the Deputy will be aware there is a Relationship Framework in place with Permanent TSB which provides the basis on which the relationship between the Minister and Permanent TSB is governed. Un...More Button

I can inform the Deputy that the Minister for Finance has not been asked, and is not required, under the terms of the Relationship Framework to give approval for a wind-up of Permanent TSB's defi...More Button

Tax Code

Was asked: if persons who availed of the farm retirement scheme are able to avail of the exemption from capital gains tax in the event of the disposal of all or part of their farm, even after leaving the sche...More Button

I am advised by the Revenue Commissioners that before a definitive answer could be given to the Deputy’s question it would be necessary to have further relevant information relating to the case. I...More Button

Currently, full relief from capital gains tax applies where the aggregate consideration for disposals outside the family does not exceed €750,000 and the farmer making the disposal satisfies the ...More Button

If you wish to provide me with the information required and the name and address of the taxpayer in question, I will request the Revenue Commissioners to provide a definitive reply.More Button

Was asked: if his attention has been drawn to the disparity that exists in the sale of nicotine replacement patches in Northern Ireland and here (details supplied); and if he will make a statement on the matt...More Button

I am advised by the Revenue Commissioners that nicotine replacement patches are subject to the standard rate of VAT in Ireland, currently 23%. Unlike other nicotine products, such as nicotine inhal...More Button

NAMA Debtors

Was asked: further to Parliamentary Questions Nos 198 and 199 of 23 April 2013, when he stated the National Assets Management Agency advises that even there the bankruptcy is discharged, the bankruptcy estate...More Button

As previously advised, even where a bankruptcy is discharged, the bankruptcy trustee continues to deal with outstanding debt until such time as all assets have been realised and the debt, in so far...More Button

Was asked: if the income of developers who are now being paid by National Assets Management Agency can be used towards reducing their insolvency debt; if the new personal solvency service will affect NAMA's d...More Button

As has been previously advised to the House, NAMA seeks to ensure that income generated by assets securing its loans is applied towards repaying a debtor’s indebtedness to the Agency. In certain ci...More Button

The position outlined above does not apply to debtors against whom enforcement action has been taken, as their assets and asset income are under the control of insolvency practitioners appointed ...More Button

  Question No. 150 answered with Question No. 132.More Button

NAMA Board Appointments

Was asked: further to parliamentary Question No. 224 of 23 April 2013, the consultation he had with the advisory board of the National Assets Management Agency prior to appointing a person (details supllied) ...More Button

I can confirm to the Deputy that consideration of the appointment of Oliver Ellingham to the NAMA Board was discussed at the most recent meeting of the Advisory Group which took place on the 15th M...More Button

Was asked: further to Parliamentary Question No. 224 of 23 April 2013, the consultation, if any, that he had on the three persons at the National Treasury Management Agency and the National Assets Management ...More Button

The Chief Executive of the National Treasury Management Agency informed me of this matter in the course of putting in place the administrative arrangements for the continuation of the gifting of 15...More Button

NAMA Expenditure

Was asked: further to Parliamentary Question No. 224 of 23 April 2013, if he will confirm the budgeted and actual cost of the National Asset Management Agency advisory board in its first year of operation.More Button

My department had budgeted costs in the region of €40,000 to cover the hotel, travel and subsistence costs of the Advisory Group for 2012, the actual cost of the group in the period was approximate...More Button

Bank Debt Restructuring

Was asked: if he will confirm the amount of debt forgiveness that will be provided by Allied Irish Bank to Independent News and Media as part of the latter firm's recently announced reorganisation plans.More Button

Was asked: if he will state, in both absolute and percentage terms, the amount of the debt being written down by wholly and partly State owned lending institutions for Thomas Crosbie Holdings Limited and Inde...More Button

Was asked: the percentage stake the State will now hold through Allied Irish Banks and Bank of Ireland in Independent News and Media Limited as a result of the debt for equity swop to facilitate the write dow...More Button

I propose to take Questions Nos. 132, 150 and 152 together.

  I have been informed that due to data protection rules and customer confidentiality the banks are not in a positio...More Button

Banks Recapitalisation

Was asked: his latest estimate of the gross and net cost of bailing out Anglo Irish bank and Irish Nationwide Building Society.More Button

Was asked: further to Parliamentary Question No. 283 of 18 September 2012, in which he stated the bank's CEO has given an indication previously that the likely outcome for Anglo Irish Bank would be in the €25...More Button

I propose to take Questions Nos. 133 and 134 together.More Button

It is important to note that comments made by the former executives in IBRC were based on the assumption that IBRC was to continue as originally planned and that payment of interest and capital o...More Button

It is far too early to predict the outcome of the liquidation process and the overall cost for the State in relation to IBRC. It will not be possible to conclude for certain whether the value of ...More Button

As part of the role of the liquidators, the assets of IBRC will be valued independently before being sold. Any assets not sold to third parties at or above the valuation price will be sold to NA...More Button

IBRC Liquidation

Was asked: the total actual and potential claims by local authorities against Irish Bank Resolution Corporation in respect of unpaid developer bonds relating to building developments; and if he will confirm t...More Button

I am advised that development bonds previously entered into by IBRC in favour of the various County Councils or local authorities remain in place. However it should be noted that it is likely that...More Button

Property Taxation Exemptions

Was asked: the way liability and qualification for deferral of the local property tax determined in a case where two siblings jointly own a home, but both individuals' income are below the threshold to allow ...More Button

Local Property Tax (LPT) is a self-assessed tax and it is a matter for a property owner to calculate the amount of LPT due based on his or her assessment of the market value of the property. I am ...More Button

  Question No. 137 answered with Question No. 125.More Button

Was asked: if a first time buyer who signed for their property on 20 December 2012 is exempt from the local property tax; and if not if he will consider an exemption for those who purchased their home from th...More Button

Section 8 of the Finance (Local Property Tax) Act 2012 (as amended) provides for an exemption from the charge to LPT for a property purchased by a first time buyer between 1 January 2013 and 31 Dec...More Button

Departmental Properties

Was asked: if his Department and agencies under its aegis, who own or rent property in commercial developments are in compliance with their responsibilities under the Multi Unit Development Act 2011; if he wi...More Button

In response to the Deputy’s question my Department does not own or rent property in commercial developments.   In respect of bodies under the aegis of my Department I am not aware th...More Button

Personal Debt

Was asked: his views that a well regulated debt management advice sector can provide assistance to persons with personal debt difficulties who do not qualify for the reliefs set out in the Personal Insolvency...More Button

The amendment to the Central Bank (Supervision and Enforcement) Bill 2011, which I proposed at Committee Stage, and was agreed on the 24th April 2013, will provide for a regulatory regime for debt ...More Button

Was asked: if he will ensure that his plans to regulate the debt management advice sector prohibits misleading advertising, ensures reasonable charges and appropriate protection for client funds; and if he wi...More Button

The amendment to the Central Bank (Supervision and Enforcement) Bill 2011, which I proposed at Committee Stage, and was agreed on the 24th April 2013, will provide for a regulatory regime for debt ...More Button

Debt management firms will be authorised to provide debt advice and debt negotiation services as provided for in the definition of debt management services in the Central Bank (Supervision and En...More Button

Alcohol Pricing

Was asked: the steps, if any, he proposes to take to influence a reduction in the price of non-alcoholic beer on sale in the on and off-trade in view of the relatively high price of such products here and the...More Button

The issue of the price of non-alcoholic beer on sale is a matter for the Department of Health and Children and I would advise the Deputy to forward her question to them for direct reply.More Button

Negative Equity Mortgages

Was asked: if he has any plans to assist homeowners who are in negative equity on their homes but need to move due to changing family circumstances but are unable to sell or get a new mortgage; and if he will...More Button

The Central Bank has advised me that it has engaged with mortgage lenders in relation to negative equity mortgages to develop a mortgage product that would allow home owners to sell their existing ...More Button

Departmental Expenditure

Was asked: the total amount of fees paid out by his Department and agencies under its remit, to PR companies; and if he will list the companies and the fees received for in the years 2010, 2011 and 2012 and t...More Button

I take it that the Deputy is referring solely to public relations costs and not to advertising costs that would be incurred by my Department in the normal course of business, such as entries into t...More Button

The National Treasury Management Agency (NTMA) will respond to you under your parliamentary question number 21365/13.More Button

State Bodies Expenditure

Was asked: if he will provide, in tabular form, a list public relations companies that received payments from either the National Assets Management Agency, the National Treasury Management Agency, the Nationa...More Button

Was asked: the number of companies or individuals that recently tendered for the renewal of the public relations contract for the National Treasury Management Agency; and if the NTMA secured a reduction in th...More Button

I propose to take Questions Nos. 145 and 146 together.

  The National Treasury Management Agency (NTMA) does not maintain an internal press office. Instead, its internal communic...More Button

Property Taxation Application

Was asked: if he will explain the way a joint owner of a house who has no communication at all with the other owner of the house should complete the local property tax form, when they are not in a position to...More Button

Local Property Tax (LPT) is a self-assessed tax and it is a matter for property owners to calculate the amount of LPT due based on their assessment of the market value of their property. Joint own...More Button

Once the LPT Return is filed and the tax paid, this will discharge the LPT liability for the property. However, where no Return has been filed and no payment has been made by the relevant deadli...More Button

Was asked: if he will estimate the number of residential properties in respect of which Revenue has not issued letters regarding the local property tax; and the plans to follow up the liable persons in respec...More Button

An important aspect of the work undertaken by Revenue in the implementation of Local Property Tax (LPT) has been the compilation of the first ever Register of residential properties in the State an...More Button

Departmental Staff Numbers

Was asked: the number of persons that are employed at the local property tax help line; the grade of these people employed; the nature of their contracts and if he will give details of the customer charter th...More Button

I am advised by the Revenue Commissioners that the introduction of the Local Property Tax (LPT) represents a significant administrative challenge. It is the largest extension of the self-assessment...More Button

At the end of April 2013, Revenue had a total of 80 full-time equivalent staff assigned to the Help Line, comprising 59 permanent staff and 21 TCOs. The permanent staff resource was filled throu...More Button

Revenue is currently in the process of recruiting an additional 35 TCOs to support the LPT Helpline.More Button

Following an open competitive tendering process, the contract for call services was awarded on the basis that the service provider would More Button

1. Deliver information and assistance to taxpayers having difficulty understanding Local Property Tax (LPT) and completing their returns and making payments.More Button

2. Assist taxpayers to navigate a new online system for filing returns and payments for LPT. More Button

3. Escalate calls to a Revenue call service where taxpayer specific information is required to resolve the call.More Button

4. Make outbound calls to taxpayers with information on their Property Tax queries where requested by Revenue to do so.More Button

5. Provide telephony infrastructure and supports to allow direct transfer to Revenue. More Button

6. Support services and resources including account management and quality control.More Button

The contract also includes the following provisions:More Button

- Private sector employers acting under a public service outsourcing contract will be required to comply with all statutory terms and conditions relating to the employment of people in Ireland, ...More Button

- As a matter of public policy, all public contracting authorities will make clear to tenderers their expectation that the statutory industrial relations procedures (LRC or Labour Court) will be...More Button

The service provider must meet Revenue customer service standards and the industry ISO standards. Revenue has provided training and training material to ensure that the standards are achieved. A...More Button

Revenue’s customer service standards state that 100% of calls were answered within five minutes but also states that at peak periods it may take longer. Revenue is experiencing extremely high vo...More Button

The service commenced on 7 March 2013 and call volumes of 199,834 were handled up to 30 April 2013. The external service delivery of peak call handling in respect of the LPT provides a flexible,...More Button

Tax Forms

Was asked: the reason a Med 1 claim for 2012 was refused in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter.More Button

I have been advised by the Revenue Commissioners that this taxpayer’s claim for medical expenses for the year 2012 has been processed and a balancing statement (P21), dated 6 February 2013, has bee...More Button

  Question No. 152 answered with Question No. 132.More Button

Banking Sector Remuneration

Was asked: his plans to further address the issue of maximum salaries for bank executives; and if he will make a statement on the matter.More Button

The present policy on remuneration at the covered institutions dictates that no individual may receive annual aggregate remuneration (excluding pension contributions) exceeding €500,000 unless spec...More Button

Mortgage Interest Rates Issues

Was asked: the position regarding hikes of the interest rates imposed by banks which seem to have no connection with the actual price at which Irish banks are getting their money, mostly through the ECB; if h...More Button

I, as Minister for Finance, have no statutory role in relation to the mortgage interest rates charged by regulated financial institutions. It is a commercial matter for the banks concerned. &...More Button

Disabled Drivers and Passengers Scheme

Was asked: his views on correspondence (details supplied) regarding the 2000cc limit on the size of a viehicle that can be used by a person with a disability; and if he will change the regulations regarding s...More Button

The criteria relating to the engine size of a vehicle and the relief available for vehicles which qualify under the Disabled Drivers Passenger Scheme have been in place since 1989. The purpose of ...More Button

Given the scale and scope of the scheme, any possible changes can only be made after careful consideration and with regard to the existing and prospective cost of the scheme and the available res...More Button

Pensions Levy Issues

Was asked: the position regarding the levy imposed on private pension funds; the date on which this commenced; the length of time it will be in place; the levies that have been collected to date; if the legis...More Button

The pension fund levy applies at a rate of 0.6% per annum to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislat...More Button

VAT Rebates

Was asked: if he will clarify the matter in relation to VAT refunds on disabled persons extensions and walk-in showers for elderly with mobility problems; if he will outline the projects which do not allow th...More Button

I am advised by the Revenue Commissioners that a provision exists for the refund of VAT incurred on qualifying goods for the use of disabled persons. The Value Added Tax (Refund of Tax) (No 15) Or...More Button

Any application under the Refund Order should be made on Form VAT 61A and submitted to the Revenue Commissioners’ Central Repayments Office in Monaghan.More Button

VAT Rates Application

Was asked: if he will clarify the rate of VAT on each of the following contraceptives, all types of contraceptive pill available over the counter here, in addition to contraceptive patches, implants, injectab...More Button

I am advised by the Revenue Commissioners that oral contraceptive pills are liable to VAT at the zero rate and non-oral contraceptives are liable to VAT at the 13.5% reduced rate. The VAT rating o...More Button