Tuesday, 30 Apr 2013

Official Engagements

Questions (134)

Thomas Pringle

Question:

134. Deputy Thomas Pringle asked the Taoiseach when he plans to meet with Justice for the Forgotten, and if he will confirm a date for same. [20275/13]

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Written answers

I have agreed to meeting with the Justice for the Forgotten Group and the families of other victims of the troubles. In preparation for a meeting with Justice for the Forgotten officials from my Department met with representatives of the Group on 18th February and have been in regular contact since that meeting. I hope to be in a position to meet with the Group shortly, and a date will be confirmed to them as soon as possible.

Trade Relations

Questions (135)

Seán Kenny

Question:

135. Deputy Seán Kenny asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to have a trade mission to Canada; and if he will make a statement on the matter. [19929/13]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Canada has been identified as a priority market under the Government’s strategy for promoting trade, tourism and investment Trading and Investing in a Smart Economy. Our merchandise exports to Canada increased by 11% in 2012 to over €780 million and early indications are that this positive trend has continued into 2013, with merchandise exports up by 12% in the first 2 months of this year. The Export Trade Council, which I chair, recognises the critical importance of Ministerial led trade missions in developing and creating new trade, tourism and investment opportunities for Ireland. Ultimately, the contracts won and contacts made during trade missions lead to job creation and long-term economic benefits for Ireland. As the Deputy will be aware, I visited Canada over the St. Patrick’s Day period last year. During this visit, I held meetings with political and business leaders and took part in a range of trade and investment promotion events organised in conjunction with Enterprise Ireland and the IDA.

My Colleague, Minister of State Costello will lead an Enterprise Ireland trade mission to Canada from 11 to 13 June this year. This trade mission will provide the opportunity to develop the excellent bilateral relations that exist between our two countries and support Irish companies to win business in the market. The programme for the visit is currently being developed by Enterprise Ireland in close consultation with my Department’s Trade and Promotion Division and our Embassy in Ottawa.

Trade Relations

Questions (136)

Andrew Doyle

Question:

136. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if he is considering dispatching officials from his Department of EU delegations run by the European External Action Service in countries where we currently do not have an embassy or on-the-ground diplomatic representation; if he will consider such a move in view of the fact that trade and exports from here will be a key to economic recovery; and if he will make a statement on the matter. [19763/13]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The European External Action Service (EEAS) supports the work of the High Representative in defining and implementing an effective and coherent foreign policy of the European Union. It does not have an economic or trade remit. Officers serving in EEAS missions serve overall EU interests and are not permitted to represent the interest of individual Member States, including their own. While Irish officials serving in an EEAS mission can, and frequently do, contribute to the furtherance of good relations between the EU and her/his country of accreditation, thereby helping create a positive climate for trade between EU Member states and that third country, there is no basis for the appointment of an Irish official to an EEAS mission for the specific purpose of promoting Irish trade interests.

Furthermore, while officers from my Department can apply for positions within the EEAS as they become available, and are released on secondment to serve there, recruitment to posts in EU delegations is a matter for the human resource selection processes of the EEAS and is not within the control of my Department. I would also note that our Embassy network continues to be strongly focussed on supporting opportunities for trade, investment and tourism in all their countries of accreditation, including where they are not resident, assisted in many cases by our Honorary Consuls and local Irish business networks and organisations.

These activities include identifying specific export and investment opportunities, helping companies build contact networks, organising trade-focussed visits in coordination with the state agencies, lobbying for market access and addressing regulatory obstacles, helping to negotiate international agreements on tax and in other key sectors, promoting Ireland as a destination for tourism and for study, and presenting clear information to key opinion-formers on Ireland’s strategy for economic recovery.

Although such activity is naturally limited in countries where we do not have resident missions, we are committed to assisting Irish exporters in these markets as far as possible. This was demonstrated most recently over the St Patrick’s Day period, when high-level promotional visits to Indonesia, the Philippines and New Zealand were organised by the Embassies in Singapore and Canberra respectively, in coordination with the state agencies.

Official Engagements

Questions (137)

Andrew Doyle

Question:

137. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade if the Secretary General of his Department, for the purposes of transparency and accountability, will publish his diary on the Department's website on a monthly basis. [19965/13]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The Secretary General of my Department will arrange for a copy of his diary, edited to reflect the exclusions identified in Freedom of Information Act, to be placed on the Department’s website at the end of each quarter.

International Relations

Questions (138)

Andrew Doyle

Question:

138. Deputy Andrew Doyle asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the latest round of the Belgrade-Pristina dialogue negotiations between Serbia and Kosovo; and if he will make a statement on the matter. [19991/13]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

I warmly welcome the positive developments at the Belgrade-Pristina Dialogue. Following the agreement reached by Serbia and Kosovo, I issued a statement commending the political courage and consistent efforts shown by the Prime Ministers of both countries; and thanking High Representative Ashton for her active engagement as facilitator of the process. Developments in Serbia and Kosovo were discussed at the General Affairs Council on 22 April, which I chaired, and the agreement was welcomed by Member States as an historic breakthrough. However it was noted that implementation of the agreement, as well as other agreements reached at the Dialogue, will be important going forward. I very much hope that this positive step for Serbia and Kosovo will provide momentum for the EU perspective of the whole region.

Mortgage Arrears Proposals

Questions (139)

Luke 'Ming' Flanagan

Question:

139. Deputy Luke 'Ming' Flanagan asked the Minister for Finance if the fostering care allowance should be excluded as income by lending institutions when calculating mortgage repayments (details supplied); his views on whether including such an allowance in mortgage repayments calculations will put the welfare of fostered children in jeopardy; and if he will make a statement on the matter. [19774/13]

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Written answers

Minister for Finance

At the initial application and award of credit stage, it will be a matter, having regard to consumer protection guidelines, for the borrower and the lender to satisfy themselves on the appropriate portion and source of income, including foster care allowances, available to meet mortgage repayments. In a situation of mortgage repayment difficulty, one of the recommendations of the Expert Group on Mortgage Arrears and Personal Debt was that “a standard financial statement (SFS) should be developed for use by all lenders and MABS, to assess a borrower’s financial position and to identify a best course of action” in respect of a borrower experiencing difficulty in meeting mortgage repayments. A standard format for the SFS was developed by the IBF and MABS and approved by the Central Bank in 2011 and all lenders are required to use this SFS when dealing with consumers under the Mortgage Arrears Resolution Process (MARP) as set out in the Code of Conduct on Mortgage Arrears. The SFS is a key component to the effectiveness of the MARP as it requires borrowers to objectively assess their incomings and outgoings, assets and liabilities and it also provides the lender with valuable information regarding the financial position of the borrower in mortgage arrears or pre arrears and will allow the lender to make its assessment of a possible alternative repayment arrangement based on the full financial circumstances of the cooperating borrower. If the borrower is dissatisfied with a proposed alternative repayment arrangement, the MARP appeals process will be available.

Outside of this bilateral framework, the Personal Insolvency Act provides for new statutory processes to deal with unsustainable mortgage and personal debt. In these processes, the rights and obligations of both debtors and creditors, in the context of any arrangement to address a position of insolvency, will be more formalised. However, in any such arrangement, the debtor will not be required to make payments at a level that would reduce his/her income below that necessary to maintain a reasonable standard of living. The Insolvency Service of Ireland has now published guidelines on what would constitute a reasonable standard of living for certain household types having regard to household composition and other relevant characteristics.

Carbon Tax Implementation

Questions (140)

Michael P. Kitt

Question:

140. Deputy Michael P. Kitt asked the Minister for Finance if there are any proposals to impose extra taxes or levies on briquettes or turf; and if he will make a statement on the matter. [19988/13]

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Written answers

Minister for Finance

Budget 2013 provided for the extension of carbon tax to all solid fuels supplied in the State. This will take effect from 1 May 2013. Solid fuel is defined under section 77 of the Finance Act 2010, as amended and means coal or peat. Coal is further defined to include coal and lignite, solid fuel manufactured from coal and lignite, and any other energy product within the meaning of Article 2.1 of Council Directive 2003/96/EC of 27 October 2003 in solid form. Peat means peat falling within CN Code 2703 of the Combined Nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987, as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 and includes any solid fuel manufactured from peat. This covers peat briquettes and turf.

Insurance Coverage

Questions (141)

Billy Timmins

Question:

141. Deputy Billy Timmins asked the Minister for Finance the position in relation to an insurance company (details supplied); and if he will make a statement on the matter. [20103/13]

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Written answers

Minister for Finance

It should be noted at the outset that neither I nor the Central Bank can compel insurers to quote for business. The decision to provide any specific form of insurance cover and the price at which it is offered is a commercial matter based on the assessment an insurer will make of the risks involved. I understand that insurance companies as a matter of course carry out reviews of the risks that they are prepared to insure against and sometimes make a decision to discontinue certain types of cover which they consider high risk such as homes close to a river which has previously flooded. These types of decisions are made sometimes on the basis of their broad past experience rather than looking at the individual circumstances of householders.

In this regard it should be noted that the OPW has advised me that Bray and its environs has a history of flooding having flooded four times seriously in the last 100 years as well as two other significant events. The last serious flood occurred in August 1986 during “Hurricane Charlie” when over 500 properties were subjected to flooding. They have also indicated that in the severe event which hit the east coast in October 2011, it is understood that areas of Bray were close to evacuation when flood levels in the river began to fall. These may be factors in the withdrawal of cover by insurance companies.

OPW has also advised me that following the Government’s Capital expenditure review for flood relief activities the Bray Scheme was given the go-ahead and a contractor was appointed in February 2012 with works commencing in May 2012. It is understood they are due for completion in late 2014 and that approximately 650 houses along with eight commercial properties are to be protected by the Scheme to a 1:100 year standard. This is a major investment by the State in addressing the flood problems affecting Bray and its residents and businesses. When completed the Scheme will afford a very high level of protection and details of this will be available to the insurance industry.

Minister for Finance

The Central Bank has informed me that they have recently commenced a themed inspection into the handling of home insurance claims. I understand that this inspection will include an examination of household property claims files where the damage was caused by water. All aspects of the claims handling and payment process will be looked at, including claim settlement retentions in order to ensure that there is compliance with the Consumer Protection Code. The review will include looking at issues such as the information being provided to consumers in the course of the claim and the timelines surrounding the settlement of property claims.

It should be noted that themed inspections are carried out as part of the themed inspection process and focus on a particular area or issue from a consumer protection perspective and a number of firms are selected for inspection to monitor compliance with the requirements in place. Where breaches of the Consumer Protection Code are identified, they may form the basis for the Central Bank taking regulatory or enforcement action.

Finally, the Deputy should also note that if a policyholder has a complaint about an insurance company not honouring a claim on a policy, they can refer the matter to the Financial Services Ombudsman for adjudication at http://www.financialombudsman.ie/ .

IBRC Liquidation

Questions (147)

Colm Keaveney

Question:

147. Deputy Colm Keaveney asked the Minister for Finance if he will confirm the veracity of reports in the media that the European Central Bank has issued an instruction or request to his Department directing that no details regarding the liquidation of Irish Bank Resolution Corporation be released under any freedom of information request; and if he will make a statement on the matter. [19785/13]

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Written answers

Minister for Finance

The Deputy will appreciate the commercially sensitive nature of the discussions with the ECB in relation to the promissory notes and the liquidation of the IBRC and that such discussions are part of a wider deliberative and confidential process. Throughout the period of the discussions between the Irish Authorities and the ECB the confidentiality of matters discussed was emphasised between the parties. However, the ECB has not been approached in relation to documentation requested under specific FOI requests relating to the liquidation of IBRC nor has the ECB requested the Department not to release any such documentation. The ECB has informed my Department that they will not be releasing any information in relation to these discussions. In normal course my Department will examine all requests received for information under the FOI Acts and assess whether specific information can be released. While the overall aim is to release the information requested the FOI Acts do list specific provisions under which records can be deemed to be “exempt records” for the purposes of the Acts. The decisions of the Department/public body, in this regard, are subject to a right of appeal by the requester. One such exemption [section 24(2)(e) 1997Act] refers specifically to information communicated in confidence from, to, or within an international organisation, including an organisation or an institution or body of the European Union. Other exemptions provided in the legislation include; meetings of Government; information received in confidence; commercially sensitive information; deliberations of public bodies; functions and negotiations of public bodies; financial and economic interests of the State; etc.

As part of this process My Department will communicate with third parties if consideration is being given to releasing information/documentation received from those parties. In the event that third parties object to information being released the Department will take a view on the nature of the information, the basis on which the information was received or acquired and the views of the third party etc. The Department will then decide whether the information should be released under the FOI Acts having regard to particular circumstances and the requirements of the public interest. Any decision, therefore as to whether information is released or not by Irish authorities under Freedom of Information legislation enacted in this jurisdiction is a matter for the Irish authorities. While the ECB or other third parties may have a view on the release of particular information the ECB has not and would not seek to influence the proper operation of national legislation.

My Department is committed to the spirit and proper operation of the Freedom of Information Acts 1997-2003.

Freedom of Information Requests

Questions (148)

Colm Keaveney

Question:

148. Deputy Colm Keaveney asked the Minister for Finance the number of freedom of information requests received by his Department in connection with the liquidation of Irish Bank Resolution Corporation; the number that have been received and the number that have been refused, in whole or in part; and if he will make a statement on the matter. [19786/13]

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Written answers

Minister for Finance

A total of 11 requests for information that relate, in whole or in part, to the liquidation of IBRC have been received to date by my Department under the Freedom of Information Act 1997 -2003. Of these requests, responses have issued in 6 cases indicating that the requests are deemed to be voluminous and fall to be rejected under section 10(1)(c) of the FOI Acts. In each of these cases the requester has been assisted or offered assistance to refine or amend the request. The remaining 5 cases are under consideration by my Department.

In normal course my Department examines all requests received for information under the FOI Acts and assess whether specific information can be released. While the overall aim is to release the information requested the FOI Acts do list specific provisions under which records can be deemed to be “exempt records” for the purposes of the Acts. The decisions of the Department/public body, in this regard, are subject to a right of appeal by the requester. The exemptions provided in the legislation include; information provided for meetings of the Government; information received in confidence; commercially sensitive information; deliberations of public bodies; functions and negotiations of public bodies; financial and economic interests of the State; etc. Decisions to release/exempt documentation will also have regard to the particular circumstances and the requirements of the public interest.

As part of this process my Department will communicate with third parties if consideration is being given to releasing information/documentation received from those parties. In the event that third parties object to information being released the Department will take a view on the nature of the information, the basis on which the information was received or acquired and the views of the third party etc. and decide whether the information should be released under the FOI Acts. My Department is committed to the spirit and proper operation of the Freedom of Information Acts 1997-2003.

Maternity Benefit Issues

Questions (149, 174, 193, 210)

Dominic Hannigan

Question:

149. Deputy Dominic Hannigan asked the Minister for Finance his plans to exempt women who do not receive a full salary top-up from maternity benefit tax; and if he will make a statement on the matter. [19789/13]

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Róisín Shortall

Question:

174. Deputy Róisín Shortall asked the Minister for Finance if he will outline the full impact of tax proposals on maternity benefit; if his attention has been drawn to the negative impact this change will have specifically on women who receive no top-up from an employer and who are dependent solely on statutory maternity benefit. [20047/13]

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Nicky McFadden

Question:

193. Deputy Nicky McFadden asked the Minister for Finance his views on the situation of women who do not receive a full salary top-up from maternity benefit tax; if those who do not receive salary top-ups from their employer should be made exempt from the tax; and if he will make a statement on the matter. [20135/13]

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Tom Fleming

Question:

210. Deputy Tom Fleming asked the Minister for Finance if he will reconsider the issue of taxing maternity benefit based on a submission (details supplied); if he will exempt women who do not receive a full salary top-up from maternity benefit tax; and if he will make a statement on the matter. [20388/13]

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Written answers

Minister for Finance

I propose to take Questions Nos. 149, 174, 193 and 210 together.

It is a general principle of taxation that, as far as possible, income from all sources should be subject to taxation. In line with this principle, the majority of social welfare payments are reckonable as income for tax purposes. These include long-term payments such as Disablement Benefit, the State Pension, Widows, Invalidity and Blind Pensions, Carers Allowance and the One Parent Family Payment, as well as short term benefits such as Job Seekers Benefit. Treating these payments as income for tax purposes is essentially a matter of equity.

As a result of maternity benefit payments becoming liable to income tax for all claimants, from 1 July 2013, a number of possible tax outcomes could arise:

1. An individual may pay no income tax on their maternity benefit payment as their tax credits will be sufficient to reduce their tax liability to zero.

2. An individual may pay income tax on some or all of their maternity benefit payment solely at the standard rate.

3. An individual may pay income tax at the standard rate on a portion of the maternity benefit and the higher rate on the balance of the maternity benefit payment.

4. An individual may pay income tax on all of their maternity benefit payment at the higher rate.

I am fully aware that some employers do not pay a top up payment to their employees whilst on maternity leave. However, in such circumstances many mothers will not be subject to income tax on their maternity benefit payments as their personal credits will ensure that no tax arises on the social welfare income itself. Of course, the extent, if any, to which taxation actually arises in a given case, depends on the total level of income that the individual or couple concerned has in the relevant tax year or years.

I would point out that maternity benefit payments will remain exempt from Universal Social Charge and PRSI.

Given the current budgetary constraints I have no plans to introduce a tax exemption along the lines proposed.

Tax Yield

Questions (150)

Eric J. Byrne

Question:

150. Deputy Eric Byrne asked the Minister for Finance the revenue raised from an increase in capital acquisitions tax from 33% to 35%; and if he will make a statement on the matter. [19807/13]

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Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the Capital Acquisitions Tax rate by 2% to 35 %, based on the expected outturn in 2013, could be in the region of €18 million, assuming no change in the existing thresholds. This estimate is provisional and subject to revision. It should be noted that this estimate is based upon an assumption that there would be no behavioural impact of this change, which could lead to a less than expected impact on Exchequer yield. In addition, the realization of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy.