GOVERNMENT NEED TO PROVE COMMITMENT TO MAINTAINING RURAL SCHOOLS

30th January 2012

I am challenging the Government to show their commitment and support for rural schools and reverse the Budget cuts which will have a devastating effect on small schools throughout the constituency. The Minister’s announcemne that he will review the budetary decision to reduce supports for disadvantaged schools are most welcome however rural schools must be included in any review.

The changes to required pupil numbers as introduced at the end of last year will be catastrophic for smaller rural schools in Tipperary and Offaly and will result in the loss of teachers and possibly closure or amalgamation for some schools. The Department of Education has estimated that this cutback will result in the loss of 250 teaching posts, nationally, over the next 3 years.

Under the Budget plans, the pupil-teacher ratio in small schools, mainly in rural areas, will be increased over the next two years. This effectively means that by the academic year 2014/2015 a school will be required to have 86 pupils to retain four teachers, 56 pupils for three teachers and 20 pupils to maintain 2 teachers in a school. To add insult to injury this applies on a retrospective basis, that is to say that next years teaching allocation is based on the enrolment for September of last year.

Since the effect of this decision has come to light I have been contacted by a large number of rural schools across the constituency. This decision means that dozens of teaching posts will be lost in Tipperary. Many of the principals I spoke to feel frustrated and annoyed with the way in which this announcement was made. It was only after examining this announcement closely that the true implications were made clear. I feel that these changes are effectively closing rural schools through stealth and by imposing these changes they are forcing rural schools to examine the possibility of amalgamation.

I have raised this issue with the Minister on a number of occasions and he has refused to re-examine or review this issue. He has simply stated that this proposal is designed to increase fairness across the primary school sector as traditionally rural schools enjoyed a lower pupil teacher ratio. While this may be the case, this disregards the unique position of rural schools and the vital service they provide. The Minister also said that the existing staffing schedule acts as a disincentive for smaller schools to consider amalgamation.

This decision will rip the heart out of rural Ireland and decimate our rural schools. Our smaller schools are an integral part of rural life and a vital resource for communities. There schools are a focal point in a local community and allow children, who are frequently live in remote areas, to be educated close to home, surrounded by friends and neighbours. It spares parents the cost and inconvenience of travelling, what may be a significant distance, to a larger school in the next town or village.

Rural schools are the lifeblood of rural communities. This Government has repeatedly attacked the rural way of life and this decision highlights that. I am calling on Minister Quinn to review the devastating effect this decision will have on rural schools as a matter of urgency.

Response received from Minister Noonan further to a Parliamentary Question Laid Down on the issue of the taxation of pensioners

19th January 2012

To ask the Minister for Finance if he will confirm the social protection payments that are considered as earnings for tax purposes and on which an individual may be liable for tax if receiving income from any other source; and if it is the intention of the Revenue Commissioners to pursue these social welfare recipients for tax on these payments- Michael Lowry.

*    For WRITTEN answer on Tuesday, 17th January, 2012.

Ref No: 2145/12

 

Aside-Does the Minister expect the revenue to look for back tax for previous years for those pensions who underpaid tax?

 

REPLY

 

Minister for Finance Mr Noonan: (in taking questions 129, 131 and 140 together)

 

I am informed by the Revenue Commissioners that the data in question was supplied by the DSP to Revenue and at the end of November 2011, Revenue advised my Department that the aggregate amount of additional tax likely to be collected from the exchange of pensions data from the DSP to Revenue and other compliance activities with the DSP was so material that we could factor it in to the Budget arithmetic and an estimated amount of €45 million for 2012 and €55 million for a full year was included in the Summary of 2012 Budget and Estimates Measures in that regard.  I am further advised that until that relevant data is analysed in more detail, it is not possible to say how much will be recovered for the Exchequer. 

 

I am informed by the Revenue Commissioners that the main Social Protection payments that are taxable include:

 

·           State Pension (Contributory)

·           State Pension (Non-Contributory)

·           State Pension (Transition)

·           Illness Benefit

·           Invalidity Pension

·           Occupational Injury Benefit

·           Interim Disability Benefit

·           Disablement Benefit (when payable in the form of pension rather than as a one off payment)

·           Death Benefit Pension

·           Widow/er’s or Surviving Civil Partner’s (Contributory) Pension

·           Widow/er’s or Surviving Civil Partner’s (Non-Contributory) Pension

·           Deserted Wife’s Benefit

·           Deserted Wife’s Allowance

·           Prisoner’s Wife’s Allowance

·           One-Parent Family Payment (Unmarried parent, Separated Spouse, Prisoner’s Spouse)

·           Guardian’s Payment (Contributory)

·           Guardian’s Payment (Non-Contributory)

·           Carer’s Allowance

·           Carer’s Benefit

·           Jobseeker’s Benefit and Short-Term Enterprise Allowance, excluding Jobseeker’s Benefit paid to systematic short-term workers.

·           Unemployability Supplement (payable with Disablement Pension)

·           Blind Pension

 

In the case of illness benefit, interim disability benefit and occupational injury benefit any child dependent element is exempt from tax. Up to and including the 2011 tax year the first 36 days injury benefit, interim disability benefit and occupational injury benefit were exempt from tax. However, with effect from 1 January 2012 this exemption no longer applies to interim disability benefit and occupational injury benefit.

 

The first €13 per week of jobseeker’s benefit and short-term enterprise allowance is exempt from tax.

 

Regarding this issue of the pursuit of back tax on the payment details recently provided to Revenue by the DSP, I am informed by the Revenue Commissioners that their normal approach to compliance is to put the right arrangements in place on a current year basis and to focus the attention of compliance staff on the cases which represent the greatest risk.  By law, Revenue cannot go back more than four years except in cases where fraud or negligence is involved.  I am further informed that as part of Revenue’s day-to-day compliance strategy they regularly take a group of cases, analyse them and on the basis of that analysis devise a policy for other cases in the same sector.  Revenue’s approach in these DSP pension cases will be no different.  Accordingly, as soon as possible Revenue will examine in detail the 2,500 largest cases where there is a mismatch between Revenue’s own records and the DSP record, and where there is non-DSP income of €50,000 or more.  In addition, they will be examining the nature of the information continuing to be received from those pensioners who are contacting Revenue.  This analysis will inform their approach to this project thereafter.

Revenue and Government Handling of Taxing Pensioners Unacceptable

11th January 2012

At the return of Oireachtas members from their Christmas break I am calling the Minister for Social Protection and the Government to answer questions over the decision made by the Revenue Commissioners to target pensioners on a higher income into the future, and their subsequent handling of that announcement. The treatment and scaremongering tactics employed by Revenue were grossly unfair and uncalled for.

As a result of the exchange of information between the Department of Social Protection and Revenue a number of inaccuracies with regards to the information previously held on Department of Social Protection pensions came to light. Revenue will now be looking at the cumulative income of all pensioners and whether or not back tax should be payable, arising from these inaccuracies.

As a result of this letters were issued to over 115,000 pensioners which indicated that they may face increased tax demands in the coming year. Into the New Year Revenue have stated that they will be targeting individuals who are over 65 years of age and earning more than €18,000 per annum, or €36,000 for a retired couple.  This essentially means that individuals who are in receipt of a pension from the Department of Social Protection and who have another source of income could face an increased tax burden. It is unclear what the extent of this will be as of yet but it has been estimated by media outlets that it could be something in the region of €4,000.

Since this announcement by Revenue my office has been inundated with an unprecedented level of calls, emails and letters from concerned pensioners across Tipperary and Offaly. Due to the lack of clarity as to the real effect of this announcement they are confused, concerned and fearful. I believe that the letter sent by Revenue was inappropriate. It is totally ambiguous and fails to adequately explain the real effect of this decision on the individual. Indeed this letter has sparked anger in many cases for those who thought they were tax compliant all their lives and have always given full and frank disclosure. It is frustrating for these people, who have done everything right, to now be told that their tax payments may not be fully up to date.

I believe that this move as an attack on those who have worked all their lives and are now seeking to enjoy their retirement. Not alone will additional taxes be a huge burden to be borne by pensioners but the actions of the Revenue caused additional and unnecessary strain.

I believe that it is unconscionable for the state to increase the tax demands on pensioners in any form. From meeting with these pensioners across the constituency it is evident that, in most cases, these people are on a set income and no longer have the capacity to increase their earnings. By Revenue targeting them in this way the detrimental effect will be disproportionately harsh on pensioners. They are now left in a position whereby it is unclear how this increased attention from Revenue will affect them, whether tax returns will be examined on a retrospective basis or what cuts are coming down the line. All these letters did was increase the confusion and distress of pensioners. In many cases the letters were sent to individuals who will not be liable for extra tax on their pension income. It is illogical to distress people in this way without any need or reason.

I welcome the fact that An Taoiseach Enda Kenny has today recognised the confusion caused over this issue. I am now calling on him to ensure that a clear, unequivocal explanation is given to these pensioners as a matter of urgency. The Government must ensure that a fair approach is taken by Revenue on this matter. To retrospectively examine these individuals and expect them to pay a lump sum would cause undue hardship and cannot be allowed. Minister Jan O’Sullivan has today said that the “majority” of pensioners will not be pursued for back tax, she stated that generally Revenue do not go after people for back tax. This flimsy promise is little comfort to the thousands of individuals who received letter and now do not know where they stand.

I am calling for the Government to make clear the position and the real effect that this announcement will have on all individuals. Concrete promises need to be given to protect the welfare of pensioners across the constituency and the country.

Letter to Minister Shatter Re; Policing in North Tipp

20th December 2011

I am calling upon Justice Minister Alan Shatter to protect and ensure the future of local Garda services across the constituency. I have written to the Minister on a number of issues affecting policing in North Tipperary, such as the non-replacement of essential staff, the future of smaller rural Garda stations as well as the closure of two non-operational stations in the constituency as a result of Budget 2012.

One of the key issues that I raised with the Minister is the non-replacement of essential staff within An Garda Síochána. For example the Crime Prevention Officer in Thurles Garda Station has yet to be replaced despite repeated representations and parliamentary questions to the Minister on this matter.

When I tabled a parliamentary question to Minister Shatter on this issue he stated that it was a matter for the Garda Commissioner and effectively wiped his hands of the matter. He indicated that the CPO in Waterford would now also cover the Tipperary area in addition to his own jurisdiction and that this was a satisfactory level of service. The Waterford CPO is already overburdened with the Waterford area and therefore does not have the time to travel to Tipperary to advise individuals. I was recently contacted by a man in the Nenagh area who was setting up a business and was anxious for the input and advice of the Crime Prevention Officer. Upon contacting Waterford he was informed that the CPO did not have the time to travel to Tipperary to offer specific advice. The Minister confirmed that the cost of providing such an officer for the entire North Tipperary area was somewhere in the region of €45-53,000.

This is an unacceptable situation. Minister Shatter has effectively wiped his hands of the issue. This disregards the fact that his Department have a direct impact on the funding of An Garda Síochána and for the maintenance of their numbers. I would like to ask the Government to provide details on the steps that have been taken to date to fill this position.

This is not an isolated problem in the constituency. I am aware of a number of posts that have not been filled further to the retirement of members of An Garda Siochana. In Holycross for example the Garda station there now sits empty further to a retirement, despite repeated assurances that this post would be filled immediately. There are fears in these areas that such stations will be the first to be lost if more rural stations are to be closed. While I understand that a moratorium is in place I would urge the Minister to give assurances that every avenue is being explored to ensure that, where possible, such positions are filled internally and filled as a matter of urgency.

The second issue relates to the on-going review of smaller stations by the Garda Commissioner, as requested by the Justice Minister. It has been repeatedly stated in the national media that upwards of 200 stations will be closed by the Government. Further to the budgetary announcement that 39 stations will be closed, including the stations of Ballinure and Ballinderry in my own constituency, I would ask the Minister to give assurances that rural stations will be protected into the future. While these stations have not been operational for a number of years the residents in these communities are devastated that such stations will now most likely never be operation again.

The closure of a rural station a hammer blow for rural life and would cause additionally distress to rural families. There are over 240 stations across the country that have just one Garda stationed there. A number of these are in rural areas in Tipperary. The presence of a Garda in the community even if it is not full time, fosters a sense of security and serves as a deterrent to crime. The Government must show its dedication to community safety and security and affirm its commitment to protecting rural Ireland and its way at life. At present we see attack after attack on the security of rural dwellers. Firstly it is the loss of a CPO and now we fear the loss of rural Garda Stations.

This is all at a time when people are literally living in fear given the ever increasing number of break in’s and burglaries. Unfortunately the run up to Christmas has seen a spate of break in’s across our towns, villages and rural communities. It is particularly upsetting for the elderly and vulnerable and cannot be allowed to continue. Local Gardaí are doing a stellar job in reacting to these calls and seeking to find the offenders but they need support and help.

 I have yet to receive a response from the Minister on these issues but I will continue to make representations in the hopes of securing a desirable outcome and cementing the future of policing in this area.