Written Answers Nos. 108-116
108. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he continues to engage with the road haulage representatives in the context of the extent to which high fuel prices here place the industry at a disadvantage in comparison with other European countries; and if he will make a statement on the matter. [23353/13]
View answerThe Deputy will be aware that I engaged on a number of occasions last year with the Irish Road Haulage Association and, out of that engagement, a working group was set up between Department officials, Revenue, the IRHA and public representatives to examine the issue of fuel prices. In Budget 2013 I announced that I would be introducing a commercial diesel relief thus allowing qualifying hauliers to reclaim a proportion of the mineral oil tax paid on auto-diesel purchased for qualifying vehicles.
Provision was made in this year’s Finance Act to allow for this relief which will apply to purchases made on or after 1st July this year and the amount to be repaid will vary by reference to the price at which auto-diesel is purchased, subject to a maximum repayment of 7.5 cent per litre.
The Revenue Commissioners, who are charged with implementing the repayment scheme, met with representatives of the Irish Road Haulage Association (IRHA) on 10th April 2013 to outline the operation of the scheme and to answer queries. The Revenue Commissioners expect to hold further meetings with the IRHA and other transport operator representatives in preparation for the commencement of the scheme.
109. Deputy Derek Keating asked the Minister for Finance if the stamp duty collected by means of the health insurance levy has resulted in a surplus in the years 2009, 2010 and 2011; the amount of such surpluses; and if he will make a statement on the matter. [23111/13]
View answerThe Health Insurance (Miscellaneous Provisions) Act 2009 was introduced to make the cost of private health insurance accessible to older people, to support the Government’s policy of community rating of health insurance. Community rating, in principle, provides that everybody is charged the same premium for a particular health insurance plan, irrespective of age, gender and the current or likely future state of their health. This measure is in response to the Supreme Court's decision in July 2008 to strike down elements of the previous risk equalisation scheme as ultra vires. It was intended that the measure would be cost neutral over its duration – that is, the cost of the age related income tax credit would be met by the yield from the health insurance levy, which is a Stamp Duty. The scheme was initially intended to run for three years but was extended for a further year before being replaced by the current permanent risk equalisation scheme under the Health Insurance (Amendment) Act 2012.
I am assuming the Deputy is asking whether the yield from the health insurance levy exceeded the cost of the age related income tax credit in the years in question. However, it is more appropriate to look at the interim scheme as a whole, rather than individual years. I am informed by the Revenue Commissioners that the annual yield for the years 2009 to date from the health insurance levy, and the cost of age related income tax credits paid out over the same period, are as follows.
|
Year |
Age-Related income tax credit cost |
Stamp Duty health insurance levy yield |
|
- |
€m |
€m |
|
2009 |
216 |
197 |
|
2010 |
308 |
318 |
|
2011 |
333 |
347 |
|
2012 |
436 |
437 |
|
2013 to date |
68 |
169 |
|
Totals |
1,361 |
1,468 |
As can be seen from the figures, in 2009 the health insurance levy yield was €19m below the age related income tax credits paid out; in 2010 the levy yield was €10m in excess of the cost of the credits; in 2011 the levy yield was €14 m in excess of the cost of the credits; and in 2012 the levy yield was €1m in excess of the credits. While the levy yield in 2013 to date is significantly higher than the credits paid out, no further levy will be received in respect of the interim scheme while payments of age related credit will continue until January 2014 in respect of policies paid by instalment. The interim scheme is still broadly on target to be revenue neutral.
Under the new permanent risk equalisation scheme, the health insurance levy continues to be collected as a Stamp Duty but it is paid into the new Risk Equalisation Fund rather than the Exchequer. The age related income tax credits have been replaced by “risk equalisation credits” which operate outside the tax system. It is also intended that the permanent scheme will be cost neutral – that is, the cost of the risk equalisation credit will be met by the yield from the health insurance levy. The projected turnover (levy yield/credit cost) of the new scheme is c. €500m per annum.
110. Deputy Stephen S. Donnelly asked the Minister for Finance if he will provide a breakdown of funding levies paid by each regulated body to the Financial Regulator in 2010, 2011 and 2012; and if he will make a statement on the matter. [23119/13]
View answerI have to inform the Deputy that, for reasons of confidentiality, the Central Bank are unable to provide information on the levies payable by individual firms. For information, the gross annual funding requirement represents, for each industry category, the proportion (50% in most cases) of the budget for financial regulation activities attributable to that category. This is then adjusted for any under/over recovery of costs from that category in the previous year in order to arrive at the net annual funding requirement for the category in question. The attached table provides an analysis of changes in the amount of levies recouped from industry categories over each of the years 2010 to 2012.
There are number of exceptions to the 50/50 funding arrangement including covered credit institutions which fund 100% of the cost of their prudential regulation and 100% of the cost of the PCAR and PLAR reviews and Credit Unions whose levies are capped at 0.01% of their total assets as at 30 September in the previous year.
Net Annual Funding Requirements
|
- |
INDUSTRY CATEGORY |
2012 - nAFR - €000 |
2011 - nAFR - €000 |
2010 - nAFR - €000 |
|
A |
Credit Institutions |
€44,900 |
€53,364 |
€21,216 |
|
B |
Insurance |
€12,013 |
€9,741 |
€7,609 |
|
C |
Intermediaries |
€2,729 |
€2,629 |
€2,506 |
|
D |
Securities Firms |
€6,591 |
€5,175 |
€3,242 |
|
E |
Collective Investment Schemes and Service Providers |
€5,538 |
€4,883 |
€4,078 |
|
F |
Credit Unions |
€1,398 |
€1,442 |
€1,440 |
|
G |
Moneylenders |
€300 |
€352 |
€309 |
|
H |
Approved Professional Bodies |
€44 |
€44 |
€35 |
|
I |
Exchanges |
€206 |
€196 |
€150 |
|
J1 |
Bureaux de Change & Money Transmitters |
€79 |
€155 |
€136 |
|
K |
E-money Providers |
€0 |
€0 |
€0 |
|
L |
Default Assessment |
n/a |
n/a |
n/a |
|
M1 |
Retail Credit Firms & Home Reversion Firms |
€107 |
€146 |
€236 |
|
N |
Payment Institutions |
€985 |
€837 |
€684 |
|
€74,890 |
€78,964 |
€41,641 |
111. Deputy Stephen S. Donnelly asked the Minister for Finance if he will provide a breakdown of monetary penalties imposed, including directions to refund or withhold moneys charged or paid, on each regulated body by the Financial Regulator in 2010, 2011 and 2012 [23120/13]
View answerA breakdown of the monetary penalties imposed as part of entering into settlement agreements with the Central Bank under Section 33AV of the Central Bank Act 1942 (as amended) is set out in the following table.
There have been no directions issued by the Central Bank to refund or withhold monies charged or paid during the period 2010-2012. It should be noted, however, that the Central Bank generally expects, as part of the process of reaching a settlement with a firm, that the firm rectifies the regulatory breach in question. In that respect, during the period 2010-2012, six regulated entities gave refunds to affected customers as part of the process of entering into a settlement agreement.
The Central Bank (Supervision and Enforcement) Bill which completed Committee stage last month provides for a system of customer redress where financial service providers engage in misconduct that is widespread or recurring and which causes customers loss or damage.
2012
|
- |
Rating |
€ |
Date |
|
Settlements |
17 |
||
|
Monetary Sanctions |
€8,492,900 |
||
|
2012 |
PRISM Rating |
Monetary Sanctions |
Date of Settlements |
|
Aviva Insurance Europe SE (ENF1) |
H |
€1,225,000 |
17/12/2012 |
|
Aviva Life & Pensions Ireland Limited (ENF1) |
H |
€1,225,000 |
17/12/2012 |
|
Community Credit Union (ENF2) |
ML |
€21,000 |
13/12/2012 |
|
Dolmen Stockbrokers Limited (ENF2) |
ML |
€20,000 |
12/12/2012 |
|
ICON plc (ENF2) |
N/A |
€10,000 |
21/11/2012 |
|
Ulster Bank Ireland Limited (ENF1) |
H |
€1,200,000 |
14/11/2012 |
|
Ulster Bank Ireland Limited (ENF1) |
H |
€760,000 |
14/11/2012 |
|
Gerard Geraghty t/a Geraghty & Co (ENF2) |
L |
€1,100 |
25/10/2012 |
|
Maurice Buckley t/a Maurice Buckley Insurance Investment Services (ENF2) |
L |
€800 |
24/10/2012 |
|
Irish Mortgage Corporation t/a Moneyzone (ENF1) |
L |
€65,000 |
23/10/2012 |
|
Bank of Ireland Mortgage Bank (ENF1) |
UH |
€120,000 |
02/10/2012 |
|
UBS International Life Limited (ENF2) |
MH |
€65,000 |
19/06/2012 |
|
Alico Life International Limited (ENF1) |
ML |
€3,200,000 |
29/03/2012 |
|
Hitachi Capital Insurance Europe Limited (ENF1) |
L |
€25.000 |
27/03/2012 |
|
Merrion Stockbrokers Limited (ENF1) |
MH |
€65,000 |
21/03/2012 |
|
Aviva Health Insurance Ireland (ENF1) |
ML |
€245,000 |
09/03/2012 |
|
Aviva Life & Pensions Ireland Limited (ENF1) |
H |
€245,000 |
07/03/2012 |
2011
|
- |
€ |
Date |
|
Settlements |
10 |
|
|
Monetary Sanctions |
€5,050,000 |
|
|
2011 |
Monetary Sanctions |
Date of Settlements |
|
Combined Insurance Company of Europe Limited |
€3,350,000 |
16/12/2011 |
|
Susquehanna International Securities Limited |
€60,000 |
13/12/2011 |
|
J & E Davy t/a Davy |
€50,000 |
08/12/2011 |
|
McSharry & Foley (Sligo) Ltd |
€10,000 |
24/10/2011 |
|
Goldman Sachs Bank (Europe) plc |
€160,000 |
08/09/2011 |
|
Pan Index Limited |
€40,000 |
25/08/2011 |
|
Aviva Investors Ireland Limited |
€30,000 |
20/07/2011 |
|
MBNA Europe Bank Limited |
€750,000 |
21/06/2011 |
|
Scotia bank (Ireland) Limited |
€600,000 |
02/06/2011 |
|
Patricia Clinton t/a Innovative Mortgage Service and Mr Frank Clinton |
N/A |
11/03/2011 |
2010
|
- |
€ |
Date |
|
Settlements |
8 |
|
|
Monetary Sanctions |
€2,248,700 |
|
|
2010 |
Monetary Sanctions |
Date of Settlements |
|
Allied Irish Banks plc |
€2,000,000 |
17/12/2010 |
|
NCB Stockbrokers Limited |
€100,000 |
16/12/2010 |
|
The Endowment Policy Purchasing Company Limited |
€23,500 |
09/11/2010 |
|
Inveralmond Insurance Limited |
€26,600 |
07/09/2010 |
|
Creation Insurance Limited |
€26,600 |
06/09/2010 |
|
Culleton Insurances Limited |
€27,000 |
15/06/2010 |
|
Allied Irish Banks, .p.l.c. |
€40,000 |
21/05/2010 |
|
Jim Mannion & Co (Insurances) Ltd |
€5,000 |
17/02/2010 |
112. Deputy Pat Deering asked the Minister for Finance if he will consider extending the mortgage interest relief on houses purchased between 2004 and 2008 as announced in Budget 2012. [23125/13]
View answerAs the Deputy is aware the Programme for Government contained a very specific commitment to examine a proposal to increase mortgage interest relief to 30% for first time buyers who bought between 2004 and 2008. In Budget 2012, this commitment was fulfilled. It is not my intention to widen the parameters of the commitment contained in the Programme for Government.
As you will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones, but I must be mindful of the public finances and the many demands on the Exchequer, given the significant budgetary constraints. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
113. Deputy Pearse Doherty asked the Minister for Finance his views on whether the Irish Bank Resolution Corporation breached the terms of its Commitments Letter to the European Commission by issuing a further €5 million loan to a person (details supplied) in 2012 to pay legal costs, when their debt with IBRC amounted to approximately €900 million in personal and corporate accounts at the time. [23153/13]
View answerI am advised by the Special Liquidators that they are not in a position to comment on individual cases. The information requested is confidential and it would not be appropriate for the Special Liquidators to release such information.
The terms of the European Commission Commitments letter are contained in the Commission Decision of 29.06.2011 and published at –
(http://ec.europa.eu/competition/state_aid/cases/235764/235764_1251125_112_6.pdf ). I am not aware of any breaches by IBRC of the Commitments contained in that decision.
114. Deputy Pearse Doherty asked the Minister for Finance if former or existing staff transferred to the National Asset Management Agency with Irish Bank Resolution Corporation are free to work with borrowers or has a cooling off period been imposed; if former or existing staff have to seek his Department's permission to take up roles with investment firms or with individuals-companies who have substantial loans with the IBRC. [23154/13]
View answerThere is no requirement for any IBRC employee to obtain permission from my Department to take up any offer of employment with investment firms or with individuals/companies who have substantial loans with the IBRC. However, I am advised by the Special Liquidators that there is a clause in all employment contracts of employees of IBRC that prevents them from disclosing or using any confidential information gained in the course of their employment with IBRC. I am advised by the Special Liquidators that they are unaware of any IBRC employees joining such organisations.
In addition, Ethics in Public Office Acts apply to current and former executives and other office holders in the IBRC where the salary earned by those employees is not less than the maximum salary of a higher executive officer (general service grade, Class B PRSI) in the Civil Service (c.€55,415). Codes of Conduct issued under these Acts require that former office holders should act in a way which ensures an unfair advantage would not be conferred in a new appointment, by virtue of for example, access to official information the office holder previously enjoyed.
115. Deputy Pearse Doherty asked the Minister for Finance if he will confirm the net interest margin at Allied Irish Banks at the end of June 2012, September 2012, December 2012 and March 2013. [23155/13]
View answerI have been informed by AIB that the bank’s net interest margin for December 2012 is 0.9% or 1.22% excluding Eligible Liabilities Guarantee (ELG) fees and all relevant disclosures can be found on page 23 of AIB’s 2012 Annual Accounts published on 27th March 2013. With respect to June 2012, net interest margin was 0.9% or 1.24% excluding ELG fees and this information is published on page 8 of AIB’s 2012 Half Yearly Financial Report.
116. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 130 of 7 May 2013, if the two advisors providing advice to both sides of the transaction whereby €1.2 billion of EBS loans were given by Allied Irish Banks to the AIB pension scheme in August 2012, were from the one firm, KPMG. [23156/13]
View answerAs I have previously advised the Deputy for commercial confidentiality reasons AIB has confirmed that it does not publicly disclose the details of contracts with individual external service providers. However, the bank can confirm that for the purpose of asset valuation, separate advisors were used by AIB and the Trustees of the AIB Pension Fund.
