Seanad debates

Wednesday, 10 December 2014

Finance Bill 2014: Committee Stage

 

12:50 pm

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael) | Oireachtas source

In this recommendation, Senators Quinn and Zappone are seeking to extend the amendments made in section 19 of the Finance Bill relating to the National University of Ireland Galway to the broader university sector. However, the motivation behind such a wide-ranging extension of this provision is not clear to me.

It is important to appreciate that the purpose of the amendments made in respect of NUIG was to address a very specific issue that had been brought to the attention of the Minister for Finance by the Revenue Commissioners regarding certain fixed-term contract employees and former employees of that university. This issue arose from the fact that NUIG only implemented certain pension-related requirements of the Protection of Employees (Fixed-Term Work) Act 2003 on 1 July 2008 while it clarified issues around the funding of pension benefits for its fixed-term contract employees. It was only from that date that it began deducting pension contributions from these employees.

This delay, coupled with legislative restrictions on the timing of pension contributions for tax relief purposes, resulted in former and current NUIG fixed-term employees who were employed by that body during the period from 14 July 2003 to 30 June 2008 being unable to obtain the tax relief they would otherwise have been entitled to had they been in a position to make pension contributions to the relevant NUIG retirement scheme in the years 2003 to 2008. In light of the difficulties encountered by these employees and former employees, the amendments made by the Minister allow them to obtain tax relief in the tax years 2003 to 2008 for pension contributions made or to be made to the applicable NUIG retirement scheme in respect of those years.

In considering this amendment, the Revenue Commissioners made inquiries to try to establish if fixed-term contract employees in other institutions had been similarly affected due to delays in the implementation of the protection of employees legislation by their employers. To date, the Revenue Commissioners have no evidence to suggest that there are other similar cases. In the absence of such evidence, the Senator will understand why the Minister for Finance does not believe we should accept the recommendation suggested. I understand what the Senator was trying to do, but we do not believe it is necessary. However, the Minister for Finance wishes to assure the Senators that should it emerge that comparable issues have affected fixed-term contract employees and former employees of any of the other institutions listed in the recommendation, they can and will be dealt with in due course.

On the basis of the foregoing, I cannot accept the recommendation.

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