Written Answers Nos. 86-93
86. Deputy Pearse Doherty asked the Minister for Finance the total of the gross salaries of the top ten earners in each of Allied Irish Bank, Bank of Ireland, Irish Bank Resolution Corporation and Permanent TSB/Irish Life in 2011 and 2012. [10852/13]
View answerI refer the Deputy to Question No. 43 of 7 November 2012, Question No. 211 of 13 November 2012, Question No. 65 of 15 November 2012 and Question No. 9 of 15 November 2012 which provide information on the basic salaries in IBRC, Permanent TSB, Allied Irish Bank and Bank of Ireland respectively and also Question No. 192 of 20 November 2012 giving total remuneration package information for staff in the covered institutions. As the Deputy will be aware, officials in my Department and Mercer have been working on a remuneration review of the Covered Banks. I have committed to publishing the details underpinning the review in view of the public interest in the matter. The report will provide a comprehensive and professional analysis of remuneration structures and levels across the Covered Banks both now and before the onset of the banking crisis. The report is expected shortly.
87. Deputy Dara Calleary asked the Minister for Finance if he will clarify if credit union special share dividends are exempt from DIRT tax for persons over 65 years of age. [10861/13]
View answerI am informed by the Revenue Commissioners that where an individual or their spouse or civil partner is aged over 65, and their income does not exceed the appropriate income tax exemption limit, they are exempt from Deposit Interest Retention Tax (DIRT) arising on credit union special share dividends. The current exemption limits are €18,000 in the case of a single person and €36,000 in the case of a married couple/civil partnership. Both the age and the income criteria must be met for the exemption to apply. Since April 2007, this exemption became automatic on the submission of a declaration to the credit union where the account is held. To qualify for the automatic exemption, the individual must declare on form DE 1 that they or their spouse or civil partner are aged 65 years or over during the year and that their total annual income does not exceed the exemption limit. Where the individual’s circumstances change following the submission of this declaration form, they are required to notify the financial institution to that effect. Where a person’s income exceeds the relevant exemption limit by a small amount, he or she will not be entitled to an exemption or to have the interest paid without deduction of DIRT, but may be entitled to a partial refund of the tax deducted.
88. Deputy Olivia Mitchell asked the Minister for Finance if he will clarify the situation surrounding the pensions of the former Irish Bank Resolution Corporation employees and the extent to which the fund is impacted, and if any clarity can be given to employees at this stage; and if he will make a statement on the matter. [10867/13]
View answerI am advised by the Special Liquidators that they will pay pension contributions that were due in respect of January and February and that all on-going contributions will be paid in line with the contribution rates pre-liquidation. I am further advised that the vast majority of IBRC staff (>98%) were members of defined contribution schemes (or no pension scheme) as opposed to a defined benefit schemes. The Special Liquidators have advised staff that their pensions are controlled by the scheme trustees who will have to independently assess the impact of the IBRC Act 2013 and the appointment of the Special Liquidators.
89. Deputy Kevin Humphreys asked the Minister for Finance if he will provide a list of the members or former members of the Judiciary who, during the past five years, have acted as chairperson or member of any body in or under his Department, or as chairperson or member of any inquiry, or have performed functions including arbitration, mediation, conciliation, patronage, advisory or law reform functions or any other role in or in any body under his Department or in any body wholly or partly funded by him, specifying in each case the name of the judge; if he or she is serving or retired; the court of which he or she is or was a member; the role or function performed; and if he will make a statement on the matter. [10880/13]
View answerThe information requested by the Deputy in relation to bodies under the aegis of my Department is as follows: Justice Francis D Murphy retired Judge of the High Court and Supreme Court has served as chairperson of the Financial Services Appeals Tribunal for the past six years. The Appeals Tribunal has jurisdiction to hear and determine appeals made by affected persons against appealable decisions of the regulator, i.e. the Central Bank of Ireland, which result in sanctions imposed for breach of its regulatory code.
90. Deputy Michael McGrath asked the Minister for Finance based on recent information made public by the ECB, the amount of interest that will be paid by Ireland to the ECB in 2013 on its holdings of Irish Government bonds purchased through its securities markets programme; and if he will make a statement on the matter. [10894/13]
View answerA recent ECB statement published details in relation to their securities holdings acquired under the Securities Markets Programme. This reports nominal SMP Irish bond holdings of €14.2bn at 31 December 2012, valued by the ECB on an amortised cost basis at €13.6bn. However, a detailed breakdown of the particular bonds these relate to, the coupon payments due and the maturity dates of each bond have not been published. It is therefore not possible to outline the interest to be paid to the ECB in relation to these holdings.
It should be noted that coupon payments in relation to Irish sovereign debt are an obligation of the State regardless of the identity of the holder of the debt.
91. Deputy Michael McGrath asked the Minister for Finance the number of credit unions currently subject to restrictions on their lending activities; and if he will make a statement on the matter. [10895/13]
View answerI have been informed by the Registrar of Credit Unions that it has been necessary to put lending restrictions in place in credit unions where there are regulatory concerns about the operation of these individual credit unions and the resultant risk to members’ savings. The number of lending restrictions is a reflection of the Registrar of Credit Union’s concerns about lending practices in the sector. There are currently about 58% of all credit unions subject to lending restrictions. Almost all credit unions with a lending restriction in place have a maximum individual loan size restriction. Of the credit unions with lending restrictions, over 71% can lend €20,000 or more to an individual member, which is a sizeable amount and should cover most circumstances.
Fewer than 2.5% of credit unions are restricted to issuing loans of less than €10,000 to an individual member, and fewer than 1% of credit unions are restricted to issuing loans of less than €5,000 per member. These are the cases where the Registrar of Credit Unions has the more significant concerns in terms of risk to members’ savings.
The individual credit union lending restrictions currently in place are reviewed on a regular basis to determine whether they are still set at appropriate levels.
92. Deputy Michael McGrath asked the Minister for Finance the plans the National Asset Management Agency has to demolish category 4 unfinished estates; the timetable envisaged for such actions; the cost incurred to date in the demolition of unfinished estates; and if he will make a statement on the matter. [10896/13]
View answerNAMA advises that it has no current plans to demolish further developments but that this may be considered as a means of reaching resolution on properties where the development is, for reasons including economic and structural considerations, not viable. Decisions will be made on a case by case basis as part of the Site Resolution Plan process to be agreed with each relevant local authority. NAMA advises that the only previous instance of it sanctioning the demolition of residential property securing its loans was in the case of a County Longford apartment block. In that instance, Longford County Council in detailing Category 4 remediation works to be taken as part of the agreed Site Resolution Plan in respect of a residential development located within its functional area sought the demolition, on health and safety grounds, of an unsafe apartment block containing 12 apartments. The demolition of this block was undertaken in 2012. NAMA advises that demolition and site remediation costs were of the order of €150,000.
93. Deputy Michael McGrath asked the Minister for Finance the amount of office space currently controlled by the National Asset Management Agency; the way this is expected to increase arising from its recently announced investment programme; and if he will make a statement on the matter. [10897/13]
View answerI am advised that the square footage of office space controlled by NAMA is not publically available. However NAMA provides a breakdown, by value and classification, of properties securing its loans in its 2011 Annual Report, which is available on its website, www.nama.ie. NAMA has indicated that it expects to advance, on a commercial basis, at least €2 billion in development capital over the next four years in Ireland to facilitate the completion of existing residential and commercial development projects and to facilitate new development for which demand has been confirmed. Reflecting both the existing breakdown of properties securing NAMA’s loans and the expected demand over the medium-term for new office accommodation within the Dublin Central Business District, as indicated, for instance, by IDA, NAMA expects that a significant proportion of future development capital advances will relate to commercial development, including new office space. As the approval and drawdown of development capital are dependent on a range of considerations, including the selection of projects that can generate the best commercial return, the resolution of outstanding issues with local authorities, consideration of the most appropriate funding and delivery models, and engagement with external parties, including prospective end users, it is not possible at this juncture in NAMA’s project planning to provide a breakdown of likely additional development by asset class.
