Written Answers Nos. 54-61
54. Deputy Colm Keaveney asked the Minister for Finance the number of persons that have claimed relief under section 14 of the Finance Act 2012; the cost of providing the relief; the estimate he would place on the increased investment and the increased employment opportunities that have been generated by the special assignee relief programme; and if he will make a statement on the matter. [10494/13]
View answerSection 14 of Finance Act 2012 introduced the Special Assignee Relief Programme which is designed to reduce the cost to employers of assigning key individuals in their companies from abroad to take up positions in the Irish based operations of their employer. Paragraph 10 of Section 14 provides that relevant employers must submit an annual return to the Revenue Commissioners detailing, inter alia, the number of employees and the amounts of exempt income claimed under the programme. This return was not sought until after the end of the tax year 2012 in order to ensure that an accurate picture of take up levels over a full tax year could be provided. Therefore, given that 2012 is the first year of the programme, reliable statistics on its uptake will not be available until later this year.
55. Deputy Jonathan O'Brien asked the Minister for Finance his views on the decision to provide a €1 billion credit facility from the National Asset Management Agency for the use of the special liquidator of IBRC; when the decision was made; the credit facility that is intended to be used for; the way €1 billion, if used, will be repaid to NAMA; if he had to seek permission to use NAMA for such a credit facility from another entity such as the ECB; if the funding of the credit facility comes from cash assets at NAMA; and if NAMA can still meet its bond repayments due at the end of 2013. [10583/13]
View answerI refer the Deputy to my responses to Parliamentary Questions Nos. 95, 97 and 98, answered on 27th February 2012, on this topic. On the 7th February 2013 I issued a Direction (NAMA/3/12/IBRC Act) to NAMA pursuant to the IBRC Act 2013 to provide such credit facilities to a special liquidator (or IBRC) on such terms and conditions, as are specified in the direction. NAMA has complied with this Direction and made a €1 billion credit facility available to the IBRC. The interest rate as per the facility agreement is referenced to the daily one month euribor rate plus a margin of 140 basis points. The facility has been advanced to IBRC (in Liquidation) for both the general corporate purposes of the Company and to discharge the Company's obligations to derivatives counterparties under derivative collateral arrangements and/or obligations to the NTMA under the NTMA ISDA Master agreement. The amounts drawn under this facility shall constitute and rank as costs of the liquidation of the Company.
I am advised by NAMA that following receipt of the Direction, the Board of NAMA met on Thursday, 7th February 2013 and approved the €1 billion facility. NAMA has made this facility available to the Company in accordance with its approved liquidity policy and from its own liquid assets. The granting of this facility does not impact on NAMA’s ability to redeem bonds in accordance with the previously indicated redemption targets.
56. Deputy Micheál Martin asked the Minister for Finance if negotiations are ongoing with the EU and ECB in respect of dealing with loss making tracker mortgages held by the covered banks; his views on the way the issue can be dealt with in a way that supports the viability of the banking sector here; and if he will make a statement on the matter. [10610/13]
View answerAs the Deputy can appreciate, officials from the Irish Authorities are in regular dialogue with all of the covered institutions in an effort to enhance stability and to facilitate the sectors’ return to profitability. In this regard, the ending of the ELG scheme is a key step along this road and is a demonstration of the progress we are making in returning to a more normal relationship between the banking sector and the State. The question of further restructuring of the banks is being kept under review by my Department and is discussed with the Troika at their regular quarterly visits.
57. Deputy Michael Colreavy asked the Minister for Finance the effects on the Exchequer and Central Fund of the sale of Irish Life. [10570/13]
View answerThe sale of Irish Life is a welcome development and provides the Irish taxpayer with a full return on its investment. There are two distinct aspects to this deal which have to be considered - the sale price of Irish Life of €1.3bn and an additional dividend due prior to completion of €40m. As such, upon completion of the deal, the Exchequer will benefit by the full amount of €1.34bn. The Deputy should be aware that the Central Fund and the Exchequer Account are one and the same.
58. Deputy Michael Moynihan asked the Minister for Finance if he has engaged with the credit union sector regarding the implications for fixed deposit investment products held by its members arising from the liquidation of the Irish Bank Resolution Corporation; the role of the regulator in protecting the interests of credit unions in the liquidation process; and if he will make a statement on the matter. [10617/13]
View answer61. Deputy Dessie Ellis asked the Minister for Finance the total volume of Irish Credit Union deposits or bonds in the former Irish Bank Resolution Corporation and if he will outline the impact of the liquidation of IBRC on credit unions. [10576/13]
View answerI propose to take Questions Nos. 58 and 61 together.
I am advised by the Central Bank of Ireland that certain tracker bonds sold to credit unions which were liabilities of IBRC at the time of the liquidation have a structured deposit element which is covered by the Deposit Guarantee Scheme for that element of the product. As a result the first €100,000 of any claim from these depositors is covered under the DGS. The bond itself is not covered by the ELG scheme as it predates that scheme.
I understand that the total amount of Credit Unions' investment in the bond is of the order of €15 million and that 16 credit unions may be affected. As part of their regulatory requirements, credit unions are required to maintain realised reserves for the purpose of absorbing unexpected losses, including from unguaranteed losses. This should be the first line of defence in such circumstances. Officials from my Department have met with the Irish League of Credit Unions on this matter and the credit unions affected have been advised to deal with the Special Liquidator.
The Registrar of Credit Unions at the Central Bank of Ireland is the independent regulator for credit unions. The Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. It is a matter for the Registrar to engage with the credit unions affected in that context.
60. Deputy Aengus Ó Snodaigh asked the Minister for Finance his views on the delayed investigation by CARB into the role of Ernst and Young's auditing of Anglo Irish Bank's books, which awaits the completion of other investigations by the Director of Public Prosecutions; and his views on whether Ernst and Young should continue operating as normal when such a serious investigation is pending. [10572/13]
View answerThe Deputy will be aware that the Chartered Accountants Regulatory Board (CARB) appointed Mr John Purcell to conduct an independent enquiry into certain matters relating to the conduct of the former auditors of Anglo Irish Bank. Mr Purcell also carried out an investigation into the conduct of certain officers of Anglo Irish Bank and members of CAI. In all cases Mr Purcell concluded there was a prima facie case. The next step in the process is for CARB to hold public Disciplinary Tribunals. However, these have been stayed following a request from the DPP who was concerned that the CARB prosecution of any of these cases could prejudice the criminal enquiry against the individuals or the firm named above arising from the various investigations carried out by the Garda and Regulatory Authorities.
Due to the sensitive nature of those issues, it would be inappropriate to comment further on the subject matter of the question.
