Written Answers Nos. 227 - 238
227. Deputy Pearse Doherty asked the Minister for Finance if he will provide a forecast for each of 2012 and 2013 of the State's contribution to the European Union budget and of receipts from the EU and to show if the State is forecast to be a net contributor or net beneficiary from the EU budget. [52453/12]
View answerThe level of Ireland’s contribution to the EU Budget is determined by the 7 year Multiannual Financial Framework, each individual annual EU Budget negotiation between Council and the European Parliament and our economic performance relative to other Member States.
It is currently estimated that Ireland’s contribution to the EU Budget will amount to approximately €1,400 million in 2012 and €1,450 million in 2013, although this will depend on a number of factors including actual budget implementation.
Based on current indications, Ireland expects public sector receipts from the EU budget of approximately €1,850 million in 2012 and €1,700 million in 2013. The change between 2012 and 2013 is partly due to the accounting and budgetary cycle associated with the current rural development programme, which ends in 2013.
This means that Ireland will remain a net recipient until at least the end of the current 7 year Multiannual Financial Framework 2007-2013. Since 1973 Ireland has been a net recipient from the EU Budget to the tune of over €42 billion (The EU makes some payments directly (e.g. research funding) which are not included in these figures).
228. Deputy Pearse Doherty asked the Minister for Finance if he will provide a total of debt write-offs, that is, where a portion of an outstanding loan to a borrower including contractually charged or accrued interest is acknowledged by the bank as unrecoverable, at the Irish Bank Resolution Corporation in each of full-year 2011 and half year of 2012 ending 30 June 2012. [52456/12]
View answer229. Deputy Pearse Doherty asked the Minister for Finance if he will provide in a tabular form a schedule of debt write-offs at the Irish Bank Resolution Corporation in each of full-year 2011 and half year of 2012 ending 30 June 2012 showing the name of the borrower, the book value of the loan outstanding including contractually charged or accrued interest, the amount written off and the date on which the write-off was acknowledged. [52457/12]
View answerI propose to answer Questions Nos. 228 and 229 together.
I have been advised that it is not the Bank’s practice to disclose the specific information requested as it is commercially sensitive. It is however the Bank’s clear preference to work constructively with its borrowers on a case by case basis to maximise the recovery of loans. Any proposed restructuring of debt facilities in IBRC is subject to established governance processes and any agreed restructuring of borrowers obligations are designed to ensure the best outcome for the State.
230. Deputy Simon Harris asked the Minister for Finance the number of meetings officials in his Department have had with public interest directors of Irish Banks in 2011 and to date in 2012; when the next such meetings are due; and if he will make a statement on the matter. [52475/12]
View answerThe primary duty and responsibility of the public interest directors as well as all the other directors is to ensure that the institution on whose board they serve is run properly and appropriately. The responsibility of public interest directors under company law is to the institution on whose board they serve. Public interest directors do not have a formal reporting relationship to the Minister or to the Department of Finance.
My officials don’t specifically meet with public interest directors appointed to the covered institutions but the public interest directors have attended meetings with officials from my Department in 2011 and 2012. I am not aware of any meeting currently scheduled between the public interest directors and officials in my Department. However officials from my Department meet with Senior Management of the covered banks on a monthly basis to discuss the achievement of their Business Plans. This is a provision of the Relationship Frameworks agreed with the covered banks. Copies of the Relationship Frameworks can be found at:
http://banking.finance.gov.ie/presentations-and-latest-documents/
As Minister for Finance, I am strongly committed to ensuring that the boards of the covered institutions act at all times in a manner fully consistent with key public interest objectives for the banking sector.
231. Deputy Pádraig Mac Lochlainn asked the Minister for Finance the reason that since 1 January 2012, workers in this State, who are resident in the north of Ireland and who hold medical cards there are no longer exempt from paying the health levy component of the universal social charge; and his plans to rectify this. [52511/12]
View answerThe Universal Social Charge (USC) was introduced on 1 January 2011. It is charged at rates of 2% on the first €10,036 of income, 4% on the next €5,980 and 7% on the balance.
In certain circumstances different rates are applied. Full eligibility for services under Part IV of the Health Act 1970, by virtue of sections 45 and 45A of that Act or Council Regulation (EC) No. 883/2004, entitles an individual to be charged at a rate of USC of 4% on income over €16,016, rather than 7%.
Full eligibility is means tested and where an individual is fully eligible for health services, he or she receives a medical card. Certain categories of workers from other European member states are automatically entitled to medical cards based on EU Regulations and Health Service Executive (HSE) guidelines, and without the need for means testing.
I am advised by the Revenue Commissioners that during 2011, Revenue applied the 4% rate to workers in this State who were resident in Northern Ireland on the understanding that, as EU workers, they were fully eligible for health services as described and, therefore, automatically entitled to medical cards.
However, following examination of the EU legislation and consultation with the HSE, it was established in 2011 that workers who are resident in other EU Member States and who travel to the State to exercise the duties of their employment (frontier workers) do not have automatic entitlement to a medical card. They may have entitlement to a medical card under Irish legislation where the HSE regards them as being ordinarily resident1 in the State but such entitlement is subject to a means test as in the case of workers resident in the State.
Revenue published clarification in December 2011 and details can be found at http://www.revenue.ie/en/practitioner/ebrief/archive/2011/no-812011.html
Accordingly, with effect from 1 January 2012, frontier workers from another EU Member State (including, Northern Ireland) who do not obtain a full Irish medical card, are liable to the normal maximum 7% USC rate, where they have sufficient income for this rate to apply.
It should be noted that credit for USC paid in Ireland should be available against tax due in a frontier worker’s country of residence where there is a tax treaty in place between Ireland and that country. Ireland has double taxation treaties with all member states of the EU.
This and further information on the USC is available from the Revenue website at http://www.revenue.ie/en/tax/usc/index.html
1The term ordinarily resident as distinct from resident refers to an individual's pattern of residence over a number of years. If the individual comes to Ireland for the first time and remains resident for three consecutive tax years, he or she will become ordinarily resident from the beginning of the fourth tax year.
232. Deputy Thomas P. Broughan asked the Minister for Finance if he will confirm that all State contributory and non contributory pensions are exempt from the universal social charge; and if he will make a statement on the matter. [52525/12]
View answerPayments that are made under the Social Welfare Acts are specifically excluded from liability to universal social charge. Accordingly, all State contributory and non-contributory pensions are exempt from the charge.
I would also draw the Deputy’s attention to the fact that certain payments, which are of a similar character to social welfare payments, are also exempt from universal social charge. A list of such payments is included at Appendix A, page 61, of the FAQs relating to the universal social charge published by the Revenue Commissioners and available at http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf .
233. Deputy Pearse Doherty asked the Minister for Finance the amount taken in excise duty on petrol and diesel in 2007, 2008, 2009, 2010, and 2011. [52544/12]
View answerI am informed by the Revenue Commissioners that revenue generated for the State from petrol and auto-diesel in the calendar years 2007 to 2011 in respect of Mineral Oil Tax, Carbon Tax and Value Added Tax is as follows:
|
Petrol |
MOT |
Carbon Tax |
VAT (Estimated) |
Total |
|
- |
€m |
€m |
€m |
€m |
|
2007 |
1,050.7 |
- |
465.2 |
1,515.9 |
|
2008 |
1,046.3 |
- |
485.9 |
1,532.2 |
|
2009 |
1,074.5 |
- |
419.0 |
1,493.5 |
|
2010 |
981.2 |
65.1 |
438.8 |
1,485.1 |
|
2011 |
992.6 |
60.1 |
459.0 |
1,511.7 |
|
- |
MOT |
Carbon Tax |
VAT (Estimated) |
Total |
|
Auto Diesel |
€m |
€m |
€m |
€m |
|
2007 |
1,076.3 |
- |
57.0 |
1,133.3 |
|
2008 |
1,051.9 |
- |
64.6 |
1,116.5 |
|
2009 |
1,060.3 |
- |
49.4 |
1,109.7 |
|
2010 |
1,040.0 |
98.4 |
55.5 |
1,193.9 |
|
2011 |
1,078.3 |
97.5 |
62.0 |
1,237.8 |
Please note that the VAT receipts are estimated, as the VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified and the actual VAT yield for each category cannot therefore be determined.
235. Deputy Pearse Doherty asked the Minister for Finance if as part of Irish Bank Resolution Corporation internal review of historical interest rate settings,the bank is reviewing interest rates applied to loan accounts in the UK and if IBRC has set aside money for repaying customers with loan accounts in the UK. [52731/12]
View answer236. Deputy Pearse Doherty asked the Minister for Finance if he or Irish Bank Resolution Corporation are assured by the internal review of historical interest rate settings that Anglo Irish Banks Treasury Department (UK) was not overstating the London Interbank Offered Rate rate in the years under review or in any years beyond those under review. [52732/12]
View answer237. Deputy Pearse Doherty asked the Minister for Finance if as part of its internal review of historical interest rate settings, if the Irish Bank Resolution Corporation is reviewing interest rates applied to loan accounts in any jurisdiction after 2004. [52733/12]
View answerI propose to take Questions Nos. 235 to 237, inclusive, together.
I have been advised by IBRC that the review of historical interest rates applied to loan accounts, which was disclosed in the Bank’s annual report of December 2010, covered loans advanced to customers in Ireland, USA, Isle of Man and the UK in the period from 1990 to 2005. The total cost of refunds for all jurisdictions is estimated at €45m to €50m. The Bank is satisfied that the overcharging that was identified and disclosed in 2010 ceased in July 2004 for loans advanced in Ireland, USA and the Isle of Man. In respect of loans advanced in the UK the Bank is satisfied that the overcharging ceased in January 2005.
238. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 207 of 13 November 2012, and 224 of 20 November 2012, if he will indicate the part or parts of Section 33AK of the Central Bank Act 1942 as inserted into that Act by Section 26 of the Central Bank and Financial Services Authority of Ireland Act 2003, which prevent him from indicating what forecasts were produced for the cost of addressing the pension deficit at Allied Irish Banks in the stress testing exercise at the start of 2011. [52806/12]
View answerI have been informed by the Central Bank that section 33AK(1A) prohibits disclosure by the Bank, its officers, employees, and agents, of confidential information concerning-
(a) the business of any person or body whether corporate or incorporate that has come to the person’s knowledge through the person’s office or employment with the Bank, or
(b) any matter arising in connection with the performance of the functions of the Bank or the exercise of its powers,
where the disclosure considered would be prohibited by the Rome Treaty, the ESCB Statute or the “Supervisory Directives”, as defined in section 33AK(10).
The most relevant supervisory directive in this instance is Directive 2006/48/EC.
Title V, Chapter 1, Article 44 of Directive 2006/48/EC, for example, imposes an obligation, on “competent authorities” (of which the Central Bank is one) for the purposes of that Directive to operate on the basis of professional secrecy. While a number of pathways for release of information are provided in the Directive (for example, a competent authority may release information where necessary to “bodies involved in the liquidation and bankruptcy of credit institutions and in other similar procedures” (see Article 44)), none of these facilitate release of information in this case.
