Denis Naughten (Roscommon-South Leitrim, Independent)
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187. To ask the Minister for Finance the number of measures announced in budget 2013 or included in the Finance Act 2013 which are to be implemented; the objectives of each and the reason for the delay in implementation; and if he will make a statement on the matter. [42430/13]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that measures announced in the Budget 2013 concerned many Departments, not just my own. As regards Finance Act 2013, this is the means by which measures announced in the Budget and relating to taxation are implemented. The Act also implements associated Revenue-related measures The scope of Finance Act 2013 was set out in the Finance Bill 2013 Explanatory Memo and subsequently also by me in my Second Stage Dáil speech. The limited number of amendments at Committee and Report Stages were extensively debated in the Dáil at the time and are therefore on the Oireachtas record also.

To address specific Finance Act 2013 measures yet to be implemented:

- A scheme of accelerated capital allowances entitled “Incentives for certain aviation services facilities” was provided for in section 31. This scheme provides accelerated capital allowances for the construction and refurbishment of certain specialist buildings and structures for use in the maintenance, repair, overhaul or dismantling of commercial aircraft. This is subject to approval from the European Commission. When this approval is received, the section will be commenced.

- The extension of the Employment and Investment Incentive from 2013 to 2020 was also announced, pending the receipt of the necessary approval from the European Commission.

- Finance Act 2013 introduced legislation to enable the Revenue Commissioners to make regulations to implement the Inter-Governmental Agreement with the USA to provide for reporting and exchange of information under FATCA. Regulations are currently being drafted in consultation with the US authorities and industry bodies, and will be implemented in advance of the first withholding date for FATCA which is currently scheduled to be 1 July 2014.

- The Living City Initiative is a pilot project which provides certain tax incentives to make it more attractive for people live in historic and culturally significant city centre Georgian houses. The initiative also offers incentives for retailers and small businesses in those areas. In respect of the Living City Initiative, Section 30(1)(a) inserted the following new Sections:

- S372AAA - Interpretation (Chapter 13) );

- S372AAB - Residential accommodation: allowance to owner-occupiers in respect of qualifying expenditure incurred on the conversion and refurbishment of Georgian houses;

- S372AAC - Capital allowances in relation to conversion or refurbishment of certain commercial premises. It is intended to commence these provisions once a cost benefit analysis has been finalised and EU State Aid approval has been received.

- As regards Film Relief, Section 21 of Finance Act 2013, amended various sections of S481 (1), (2) and (3).The new provisions will ensure that the tax reliefs will accrue to the producers rather than investors and result in tax savings for the Exchequer. It is intended to commence this provision once EU State Aid approval has been given.

Finally, I would note two Budget-related measures:

- In my Budget 2013 speech, I announced that changes to give effect to the commitment in the Programme for Government to cap taxpayers' subsidies for pension schemes which deliver pension income of more than €60,000 will be put in place in 2014. It remains my intention to address these issues in Budget 2014.

- Sections 19, 20 and 21 of the Finance (Local Property Tax) Act 2012 are not yet operational. Per the Finance (Local Property Tax) Act 2012 (Section 1) (Specified Date) Order 2012, 1 July 2014 is appointed as the day on which sections 19, 20 and 21 of the Finance (Local Property Tax) Act 2012 (as amended) come into operation. These sections relate to the “local adjustment factor” which, once commenced, will allow local authorities to vary the rate of tax in their area by 15% above or below the national central rates. These sections have a later implementation date because it is not operationally possible to introduce this local adjustment factor until 2015 and it is also preferable that local councillors have a specific electoral mandate to vary the rate of the tax, which will be possible following the local elections in 2014.