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Tuesday, 16 Oct 2012

Written Answers Nos. 215-226

Property Transfers

Questions (215)

Éamon Ó Cuív

Question:

215. Deputy Éamon Ó Cuív asked the Minister for Finance the number of persons who have availed of the reduced stamp duty rate on agricultural land, which was reduced from 6% to 2% and was introduced in Budget 2012; and if he will make a statement on the matter. [44677/12]

View answer

Written answers

The rate of stamp duty on transfers of non-residential property, which would also apply to agricultural land, was changed in Budget 2012, applying to property transactions executed on or after Budget night 6 December 2011. The previous six rates were replaced with a single rate of 2%. Figures for Stamp Duty on non-residential transactions are not captured in a manner that would enable a breakdown between agricultural and non-agricultural transactions to be provided.

Tax Reliefs Cost

Questions (216, 217)

Éamon Ó Cuív

Question:

216. Deputy Éamon Ó Cuív asked the Minister for Finance the number of persons who have availed of the restructuring of the retirement relief on capital gains, introduced in Budget 2012; the number of these that were farmers; and if he will make a statement on the matter. [44678/12]

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Éamon Ó Cuív

Question:

217. Deputy Éamon Ó Cuív asked the Minister for Finance the number of persons who have availed of the capital gains tax incentive for property purchased before the end of 2013 and introduced in Budget 2012; the number of these that were farmers; and if he will make a statement on the matter. [44679/12]

View answer

Written answers

I propose to take Questions Nos. 216 and 217 together.

These questions relate to two capital gains tax measures I introduced in the 2012 Budget. One is a provision for a retirement relief to incentivise timely business and farming asset transfers and the other is a relief from capital gains tax on the disposal of certain property, where that property is bought during the "incentive period" from 7 December 2011 to 31 December 2013 and is held for seven years. As yet, no information is available on the number of people who have availed of retirement relief as restructured in the 2012 budget because they will be applied for via personal income tax returns for 2012 which will not be submitted until late in 2013. It is not anticipated that these returns will include a provision for the separate capture of specific information in relation to these incentives. The claims in question are expected to be merged and allowed with other allowable claims to the extent that they are unlikely to be separately identifiable. As regards the number of people who have availed of the capital gains tax incentive for property purchased before the end of 2013 and introduced in Budget 2012, the relief cannot be claimed until a property bought in the incentive period is owned for at least seven years. This means the earliest full tax year that this relief can be claimed is 2019 and these returns are not due to be filed until late 2020.

Credit Unions Regulation

Questions (218)

Michael Healy-Rae

Question:

218. Deputy Michael Healy-Rae asked the Minister for Finance if he will ensure that the proposed new legislation and in particular the Credit Union Bill will not prevent credit unions from providing additional services to their members when and where they want them; and if he will make a statement on the matter. [44713/12]

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Written answers

The Credit Union Bill 2012 reflects the agreed report of the Commission on Credit Unions and implements 60 of its recommendations. These recommendations were agreed by all members of the Commission, including credit union stakeholders. The report states that the level of additional services that may be provided by credit unions will depend on the business model of the credit union within the new tiered regulatory approach. It will be up to each credit union to decide its own model. Section 48 of the Credit Union Act 1997 governs the provision of additional services by credit unions and allows decisions to provide additional services to be made by members at a general meeting. As recommended by the Commission, the Credit Union Bill 2012 amends the 1997 Act provisions by allowing decisions to provide additional services to be made either by members at a general meeting, or by the board of directors. Once this decision has been made, the credit union must obtain approval from the Central Bank to provide this service, unless that service has been exempted from requiring such approval by regulations previously made by the Minister or, under new proposals, by the Central Bank. A credit union must ensure that it has appropriate systems and controls in place when providing additional services.

Proposed Legislation

Questions (219)

Brendan Griffin

Question:

219. Deputy Brendan Griffin asked the Minister for Finance if extended trading retail betting shops will be implemented prior to the remaining parts of the 2012 Betting (Amendment) Bill, in view of the fact that this section does not require EU ratification; and if he will make a statement on the matter. [44774/12]

View answer

Written answers

The Betting (Amendment) Bill which was published in July provides for extended opening hours in bookmakers. The extended opening hours will come into effect after enactment of the Bill.

Debt Collectors Regulation

Questions (220)

Michael McGrath

Question:

220. Deputy Michael McGrath asked the Minister for Finance his plans to regulate persons or firms who are hired to provide debt collection services; if he has any record of the number of persons or firms providing such services at the present time; and if he will make a statement on the matter. [44778/12]

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Written answers

I have no responsibility for the regulation of debt collectors and debt collecting firms. In such circumstances, I do not have details of the number of people or firms which provide such services. Debt collection services apply across a significantly wider range of activities than the recovery of money for financial products, for example for utilities, rents, other consumer debts and also debts between businesses. The Minister for Justice and Equality is responsible for legislation - the Non-Fatal Offences against the Person Act 1997 - which applies to all debt collectors that operate across any or all sectors of the economy, including private individuals and debt collecting firms. Under section 11 of this Act, it is an offence to demand payment of a debt in a way that is designed to cause alarm, distress or humiliation. A person found guilty of offences under this Act is subject to large fines and up to 14 years imprisonment. The Deputy might wish to note that in the case of financial institutions which use debt collection firms, the Central Bank has imposed requirements that offer protection to consumers under its revised Consumer Protection Code. The code obliges the regulated entities it covers to ensure that any outsourced activity, such as debt collection, complies with the requirements of the code. This means that outsourced activity should uphold principles in the code such as the requirement for institutions not to exert undue pressure or undue influence on a customer, to act honestly, fairly and professionally in the best interests of customers, to act with due skill, care and diligence in the best interest of its customers and to prohibit personal visits or oral communications except in specified circumstances. Similarly, there are provisions in the Central Bank's Consumer Protection Code for Licensed Moneylenders which provide protections to consumers in relation to the debt collection activities of licensed moneylenders, including where they outsource this function to a third party. In view of the responsibility of the Minister for Justice and Equality in relation to the Non-Fatal Offences against the Persons Act 1997, the Deputy may wish to seek further clarification on the matter from him.

Credit Availability

Questions (221)

Tom Fleming

Question:

221. Deputy Tom Fleming asked the Minister for Finance the number of loans that have been sanctioned to small to medium six businesses during the past 12 months; the number of these that were new businesses; the total value of these loans; the number that were refused loans during the same period; and if he will make a statement on the matter. [44781/12]

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Written answers

I assume the Deputy is seeking data from all Irish banks lending to the SME sector. The Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years between 2011 and 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. In terms of the pillar banks, the precise information reported to my Department and the Credit Review Office is commercially sensitive. As such, there is limited specific detail that can be divulged on the tracking of the banks’ performances. However, the Deputy may wish to note that the independent Credit Review Office, as part of its remit, monitors the banks’ progress in relation to the targets and reports on a quarterly basis. Mr. Trethowan’s ninth quarterly report was published on 8 October last, and is available at www.creditreview.ie/docs/NinthQuarterlyReport%20fromJohnTrethowan.pdf. Mr. Trethowan states in the report that “€3.5bn of sanctions for each bank is a very challenging target, however the remaining five months typically show more lending activity and I am of the view that, after a slow start to the year, the targets will be a challenge but still may be achieved". Data provided by the Central Bank indicates that the drawdown of new lending by non-financial SMEs from credit institutions in Ireland was €1.2 billion in the first six months of 2012. Figures for the equivalent period in 2011 show drawdowns of €1.6 billion. Excluding SMEs in the property related sectors these figures show drawdowns of new lending of €866 million in the first six months of 2012. Figures for the equivalent period in 2011 show drawdowns of €1.1 billion. For the Deputy’s information, the relevant statistics for credit made available to small business are accessible at www.centralbank.ie/polstats/stats/cmab/Documents/ie. (Table A.14.1 - Credit Advanced to Irish-Resident Small and Medium Sized Enterprises). The Deputy should note that the lending figures provided by the pillar banks to my Department and those provided by all banks to the Central Bank have different objectives and measure different aspects of lending. These differences are outlined in Mr. Trethowan’s ninth quarterly report.

NAMA Social Housing Provision

Questions (222)

Tom Fleming

Question:

222. Deputy Tom Fleming asked the Minister for Finance the position regarding the 4000 properties identified by the National Assets Management Agency for social housing; the number of transactions that have taken place to date; the number of these properties that are in County Kerry; and if he will make a statement on the matter. [44795/12]

View answer

Written answers

I am advised by the National Asset Management Agency (NAMA) that it has now identified approximately 3,800 units as being available through its debtors and receivers and potentially suitable for social housing. Of those that have been examined to date by approved housing bodies, demand has been confirmed for over 1,500 units which are currently being progressed. Transactions have been completed in respect of 133 properties, with a further 400 under advanced negotiation. The Agency further advises that 438 houses and apartments have been deemed unsuitable by housing bodies for reasons including the avoidance of undue segregation and a further 542 have been withdrawn by the property owners as, in the timeframe involved in the assessment of units, houses and apartments have been sold or let privately. Of the units that remain available and are currently being considered for suitability by the Housing Associations, 90 are located in County Kerry.

Credit Unions Regulation

Questions (223)

Michael Healy-Rae

Question:

223. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the Credit Union Bill 2012; and if he will make a statement on the matter. [44828/12]

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Written answers

I have received a letter from the Irish League of Credit Unions on similar terms to the one referred to by the Deputy. The Government recognises the important role of Credit Unions as a volunteer co-operative movement and the distinction between them and other types of financial institutions. The Commission on Credit Unions was established to review the future of the credit union movement and make recommendations in relation to the most effective regulatory structure for Credit Unions, taking into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect depositors savings and financial stability. The Commission published its Report in April 2012. The Report of the Commission was agreed by all members including the Irish League of Credit Unions. If we are to build confidence in credit unions, it is important that all those who wrote and agreed the Commission report continue to stand behind it. The Credit Union Bill 2012 reflects the recommendations made by the Commission on Credit Unions and provides legislative basis for over 60 of those recommendations. The Government has already shown its commitment to the sector. A figure of €500 million has been put aside for the restructuring and stabilisation of credit unions at a time when the Government faces difficult budgetary choices and competing needs for scarce resources. There is an onus on the credit union movement to embrace the necessary changes to ensure this commitment on behalf of the taxpayer delivers a viable sector into the future. The Government’s commitment to implementing the Commission Report is backed by solid early delivery of major elements of it - the publication of the Credit Union Bill 2012, the commencement of fitness and probity and contributions under the Deposit Guarantee Scheme and the appointment of the Credit Union Restructuring Board and early commencement of its work.

Departmental Banking

Questions (224)

Michael McGrath

Question:

224. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form if possible, a list of the bank accounts used by his Department and separately any agencies within the remit of his Department; the purpose of each bank account and the financial institution the bank account is with; the total amount of any interest charged or bank fees incurred by his Department and separately by each agency in 2011 and anticipated figure for 2012; the percentage of payments issued by his Department and each agency which are issued electronically and if the Department agency has any special arrangement in place on the issue of bank charges and fees; and if he will make a statement on the matter. [44849/12]

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Written answers

The information requested by the Deputy is contained in the table that follows this reply. My Department is a shared services provider and acts as agent for a number of other Government Departments/Offices in the making of payroll, pensions and general payments. Bank charges are one of the factors in decisions on the selection of new bank accounts following tendering processes. In many cases, interest charges do not arise for the Office of the Revenue Commissioners. Over 99% of payments issued by my Department are in electronic form. In the case of the Revenue Commissioners, 98% of payments are electronic and the figure is 100% for the Office of the Comptroller and Auditor General.

Department/Agency

Financial institution

Purpose of account

Fees 2011

Fees 2012 (est.)

Department of Finance

Danske Bank (NIB)

Public bank account for payment of invoices to suppliers and expenses to staff

€429.30

€374.00

B.O.I.

Public bank accounts for the payment of salaries to staff members

€2,045.39

€2,600.00

Central Bank

The PMG Supply Account is the Account through which Government voted expenditure is transacted

Central Bank

The Exchequer Account is an Account for all payments and receipts of Government unless otherwise provided by law

Revenue Commissioners

A.I.B.

a/c for receipt of EFT payments

A.I.B.

Daily lodgements.

€145,807.25

€90,250.10

A.I.B.

Receipt of EFT payments & lodgements

A.I.B.

a/c for receipt of ROS payments

€20,300.93

€21,131.81

A.I.B.

EFT payments to suppliers

A.I.B.

EFT T&S payments to staff

A.I.B.

EFT PAYE repayments to taxpayers

A.I.B.

a/c for CAT receipts from devolved offices

A.I.B.

EFT Repayments for VAT International Claims

A.I.B.

EFT ITP Repayments for STAMPS

A.I.B.

EFT Repayments for CPS International Claims

A.I.B.

CAT receipts

B.N.P.

a/c for receipt of ROS payments

B.O.I

Payment of Salary and O/T by Paypath

B.O.I.

Vote Cashier.

B.O.I.

Vote Cashier.

B.O.I.

receipt of ce eft payments

B.O.I.

Repayments of V.A.T. by electronic fund transfer.

B.O.I.

Payment of Taxes by Direct Debit

B.O.I.

Payment of Taxes by Direct Debit

B.O.I.

Payment of Taxes by Direct Debit

B.O.I.

UNPAIDS Relating to Giro/Direct Debit a/c's

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Payment of Taxes By GIRO

B.O.I.

Holding a/c for Funds seized by the CNDT

B.O.I.

AUTOMATED ENTRY PROCESSING

B.O.I.

Receipt of C&E lodgements

B.O.I.

Receipt of C&E lodgements

B.O.I.

Receipt of LPA Stamp Duty Payments

B.O.I.

Receipt of C&E lodgements

B.O.I.

Receipt of EFT Stamp Duty Payments

B.O.I.

Receipt of C&E lodgements

B.O.I.

Receipt of C&E lodgements

€3,835.80

B.O.I.

Receipt of ROS payments

€4,438.89

€90,054.10

B.O.I.

Collection of TRS overpayments by EFT.

B.O.I.

C.T. Repayments by electronic fund transfer.

B.O.I.

a/c for payment of TRS Mortgage

B.O.I.

Holding A/c for funding TRS Rev66

B.O.I.

Holding A/c for funding TRS Rev71

B.O.I.

Lodgements in respect of Bogus non-resident accounts - Stage 2.

B.O.I.

Lodgements in relation to Offshore Assets Group

B.O.I.

Lodgements in connection with Single Premium Life Insurance Investigation

B.O.I.

Lodgements iro of Offshore/Ansbacher investigations

B.O.I.

repayment of stamp duty

B.O.I.

repayment of stamp duty

B.O.I.

Lodgements iro deposits > €E00,000

B.O.I.

Repayment of PAYE

B.O.I.

Funding of PAYE

B.O.I.

Repayment of Assessed Taxes

B.O.I.

Funding of Assessed Taxes

B.O.I.

Repayment of Non ITS Taxes

B.O.I.

Funding of Non ITS Taxes

B.O.I.

EFT Repayment of CPS Domestic Claims

B.O.I.

Misc. Head Office Receipts

B.O.I.

EFT Repayments for CAT

B.O.I.

Receipt of C&E lodgements

B.O.I.

Receipt of tax payments by credit card over the phone

€404.26

€40,755.24

Central Bank

Holding a/c for Exchequer Transfers, Funding of A.G.'s and C.G.'s Drawing a/c's

Central Bank

Lodgement of Unallocated Taxes

Central Bank

Lodgement of Unallocated Taxes

Central Bank

For receipt of ROS lodgements prior to lodging to Revenue General a/c

Central Bank

Receipts of EU VAT from traders & payover relevant portions to EU OMS

Central Bank

Receipts of EU VAT from EU OMS

Central Bank

Receipts of SEA Customs from traders & payover relevant portions to EU OMS

Central Bank

Receipts of SEA Customs from EU OMS

Central Bank

Receipt of witholding tax from some EU states and Associated Territories

Central Bank

Exchequer funding account

Comptroller and Auditor General

B.O. I.

Normal business account to meet the expenditure of the Office

€1,900.00

€2,000.00

Pensions Levy Yield

Questions (225)

Michael McGrath

Question:

225. Deputy Michael McGrath asked the Minister for Finance the amount of money collected by way of the levy on pension funds in 2011 and 2012; and if he will make a statement on the matter. [44865/12]

View answer

Written answers

I am informed by the Revenue Commissioners that receipts from the temporary 0.6% stamp duty levy on pension fund assets introduced in the Finance (No. 2) Act 2011 amounted to €463 million in 2011 and to €477 million in 2012 by the end of September. This is broadly in line with the amounts anticipated to be collected over the period.

Tribunals of Inquiry Reports

Questions (226)

James Bannon

Question:

226. Deputy James Bannon asked the Minister for Finance if any proceedings have been initiated against the State arising out of the findings of the Moriarty Tribunal; and if he will make a statement on the matter; and if he will make a statement on the matter. [45595/12]

View answer

Written answers

The Deputy should note that there have been no proceedings initiated against the State arising from the findings of the Moriarty Tribunal. However, there are two significant sets of proceedings which predate the findings of the tribunal but which are concerned with the matters canvassed by that tribunal and the conclusions reached by that tribunal. The cases in question are (i) Comcast International Holdings Incorporated, Declan Ganley, Ganley International Limited and GCI Limited v. The Minister for Public Enterprise, Michael Lowry, ESAT Telecommunications Limited, Denis O'Brien, Ireland and The Attorney General, and (ii) Persona Digital Telephony Limited and Sigma Wireless Networks Limited v. The Minister for Public Enterprise, Ireland and the Attorney General. Both of these cases allege wrongdoing in respect of the awarding of the second GSM Licence award, which was the subject matter of second module of Moriarty Tribunal report delivered March 2011. As the Deputy will appreciate, because both of these cases are sub judice, it would not be appropriate for me to comment further on them.

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