Written Answers Nos. 86-96
87. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which contact has been made with undocumented Irish in the US with particular reference to the need to regularisation; the extent of progress in relation to such matters; and if he will make a statement on the matter. [23619/13]
View answerA resolution of the situation facing the undocumented Irish in the United States has been and remains a priority for the Government in ongoing contacts with the US Administration and Congress. The Government have also attached great importance to providing for future flows of migration between Ireland and the United States through the extension of the so called E3 visa scheme to include Irish citizens.
In this context, we very much welcome the publication last month of the US Senate’s Border Security, Economic Opportunity and Immigration Modernization Bill which provides for reform of the US immigration system.
The comprehensive draft legislation, which was drafted over several months by a bipartisan group of eight US Senators, includes provisions that would legalise the status of thousands of undocumented Irish people and provide a path to permanent residency. It also provides for future flows of legal migration between Ireland and the US.
The Bill is a very positive development. Its provisions, if adopted, would help to end the great hardship and uncertainty faced by undocumented Irish in the US and their families here in Ireland. The inclusion of a new provision to allow several thousand Irish citizens to legally avail of employment opportunities in the US every year is also particularly welcome.
Both of these issues were a key focus of the ongoing contacts undertaken by the Taoiseach and me with political leaders in the US, particularly during our visit to Washington D.C. over St. Patrick’s Day when we discussed the prospects for progress with Ireland’s key friends on Capitol Hill and in the Administration. The Government has maintained close contact since publication of the Bill with the key players through our Embassy in Washington.
It is important to recall that the overall issues involved are complex and sensitive ones within the US political system and that much further debate is likely to be required before the final shape of any overall legislation becomes clear.
I would like to reiterate my appreciation for the active support we continue to receive from a number of Irish community organisations, including the Irish Lobby for Immigration Reform, the Chicago Celts and the Ancient Order of Hibernians.
88. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which Ireland’s EU Presidency has succeeded in addressing the most pressing issues in the course of its term of office; and if he will make a statement on the matter. [23620/13]
View answerIn preparing for Ireland’s Presidency of the Council of the EU, the Government sought to focus the agenda on the most urgent issues facing Europe today; promoting stability, stimulating sustainable economic growth and creating jobs in Europe.
During its first four and a half months in office, steady progress has been made on the Presidency’s policy objectives. In the remaining seven weeks of the Presidency the Government will further intensify its efforts to drive its Presidency programme forward and to deliver strong and tangible results for the EU and its citizens. Fighting unemployment and the causes of joblessness, particularly among young Europeans, has been one of the most pressing priorities of the Irish Presidency.
We were pleased to have secured agreement in February on the Youth Guarantee programme. The decision reached at the February European Council on a €6bn fund to tackle youth unemployment in the worst-affected regions in the EU was also significant. The Presidency will continue to make progress on initiatives such as the Erasmus for All programme aimed at ensuring that all citizens, but particularly young people, have access to the skills and education to equip them for today’s job market. As Presidency, Ireland also identified the research and innovation sector as an area with strong growth potential and we are working hard on initiatives such as the Horizon 2020 funding programme and the European Research Area to support future growth and employment in this fast-growing sector.
The Irish Presidency also placed a strong emphasis on measures aimed at strengthening and modernising the Single Market to deliver growth and job creation. The agreement secured on the Accounting Directive and the Union Customs Code will contribute to reducing the administrative burden on businesses, in particular SMEs. The Re-Use of Public Sector Information agreement that the Presidency brokered in April also offers strong potential to spur growth and support the creation of new jobs in Europe. The Unified Patent Court (UPC) agreement will not just help business by providing a one-stop shop for registering and protecting patents within the EU, but will also contribute to driving growth in the digital Single Market. Our ongoing work in driving forward policy on key issues including e-identification regulation and the data protection package is proceeding well. The Presidency will host the Digital Agenda Assembly in Dublin in June which we hope will contribute to the development of this critical sector of the Irish and European economies.
The Irish Presidency is also working to advance the EU’s external trade agenda with third countries in order to open new markets for Europe’s exporters and to create jobs. Good progress is being made in trade negotiations with a number of countries in Asia. One of our top priorities in the trade area remains securing a mandate for the start of negotiations on a Trade and Investment Partnership with the US given the very great potential for growth and job creation that such an agreement could generate on both sides of the Atlantic. This will remain a key focus for the remainder of the Presidency.
The Irish Presidency is also attaching major importance to measures which promote stability and confidence in Europe’s economy. In parallel with its focus on growth and jobs, we have placed a strong emphasis on restoring health to the EU’s banking system to support future growth, protect tax-payers and avoid past mistakes. Good progress has been made on advancing the Banking Union package of legislation, with agreements secured by the Presidency on the Capital Requirements Directive IV and Single Supervisory Mechanism. We are now working on other elements of the Banking Union, in particular the Banking Resolution and Recovery proposal. The Presidency has also secured agreement in other areas including on proposals such as the Mortgage Credit Directive and the “Two Pack” legislation which improves budgetary surveillance and coordination in the euro area.
Following the decision taken at the European Council last February on the EU’s future financing, the Taoiseach and I have met on a number of occasions with the President of the European Parliament (EP) to address the issues preventing the Parliament from giving its approval to the proposed Multiannual Financial Framework for the period 2014 to 2020. Ireland considers that timely agreement on the budget is critical given the implications for EU initiatives which support the creation of employment, economic growth and social cohesion in Europe. The Taoiseach and I met EP President Schulz and Commission President Barroso in Brussels on 6 May, and I am pleased that our discussions formed the basis of further negotiations on resolving outstanding differences which I attended earlier this week. The Presidency remains open and fully committed to working with all partners to secure a deal on the budget to ensure that it is put to work at the earliest opportunity to support employment and growth in Europe.
The Presidency has also brokered agreements on a wide range of other issues including protecting citizens from serious cross-border threats to health, strengthening provisions on water quality in the EU, improving the safety of workers in offshore oil and gas prospection and protecting workers in contact with electromagnetic fields. And we look forward to delivering more agreements over the coming weeks.
The Government has invested a great deal in this Presidency, because we believe that Ireland’s future and its future interests in Europe are best served by being an active and constructive Member State. Building on the progress made to date, every member of Government will work over the coming weeks to deliver results that contribute to a better Europe.
92. Deputy Clare Daly asked the Minister for Finance if he will ensure that a person (details supplied) is prevented from buying back their loans at a discount from National Asset Management Agency, in view of the fact that they have refused to deliver on their responsibilities to remediate homes in their developments which have pyrite and other building defects; and if he will make a statement on the matter. [23404/13]
View answerI am advised by NAMA that it is precluded from discussing matters relating to particular debtors by virtue of Sections 99 and 202 of the NAMA Act. However I would like to refer the Deputy to Section 172 of the NAMA Act 2009 which sets out the Limitations on certain dealings in land, etc.
93. Deputy Stephen S. Donnelly asked the Minister for Finance the legal basis for the statement that holders of bonds in banks be ranked pari passu with depositors in the event of insolvency of a bank; and if he will make a statement on the matter. [23386/13]
View answerThe legal position is that in the absence of a subordination agreement, where a financial institution is being wound up the principle that applies is pari passu. This means that holders of bonds in banks have equal ranking with depositors to be repaid in the event of insolvency of the financial institution. So, where there is a shortfall in assets all unsecured creditors are entitled to an equal dividend. The principle of creditor equality is also enshrined in the Credit Institutions Winding Up Directive 2001/17/EC.
In the context of a company that is continuing in business as a going concern the principle of pari passu does not apply although the effect is similar. Where a company has debts, they are liable to pay those debts and each debtor has an equal right to be repaid whether that person’s debt arises on foot of a bond or a deposit. In either case the terms of the repayment will obviously be determined by the instrument creating or evidencing the debt - repayable on demand or at a certain future time. I would add that the principle of equal entitlement to be repaid their debts as amongst unsecured creditors is subject to the absence of one of them being obliged by contract to be postponed in favour of another.
It must also be remembered that eligible depositors who suffer a loss in the event of a financial institution being wound up insolvent are entitled to compensation under the Deposit Guarantee Scheme. The Deposit Guarantee Scheme covers all retail deposits with all credit institutions authorised in Ireland (including credit unions) up to a maximum of 100,000 euro per qualifying depositor per institution.
94. Deputy Clare Daly asked the Minister for Finance his plans to review section 57 CL (1) of the Central Bank and Financial Services Authority of Ireland Act 2004, to facilitate those with small claims having the right to appeal a decision of the Financial Services Ombudsman without the expense of going to the High Court. [23387/13]
View answerFirstly, I must point out that the Financial Services Ombudsman is independent in the performance of his statutory functions.
The Financial Services Ombudsman’s Bureau was established under the Central Bank and Financial Services Authority of Ireland Act, 2004. The legislation provides for an independent, impartial investigation and resolution of disputes between consumers and Financial Service Providers.
The Financial Services Ombudsman was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner. Prior to the establishment of the Financial Services Ombudsman complaints from consumers of insurance and credit institutions were handled by two voluntary ombudsman schemes. The “McDowell Report” in 1999 recommended the establishment of a single statutory ombudsman scheme for all financial services provided by regulated entities, to operate independently of the Single Regulatory Authority and to operate as a “one – stop – shop” for regulated entities and their customers.
The Financial Services Ombudsman is an out of court redress body that is free to the complainant.
If a consumer has made a formal complaint to the financial institution in question and if not satisfied with the reply they can contact the Financial Services Ombudsman in relation to the matter. The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers who are either regulated by the Central Bank or are subject to the terms of the Consumer Credit Act 1995. All personal customers, unincorporated bodies, charities, clubs, partnerships, trusts, and limited companies with a turnover of €3,000,000 or less can complain to the Ombudsman.
The Financial Services Ombudsman has the power to award compensation of up to a maximum of €250,000 or €26,000 annuity where a complaint is upheld. The decisions of the Financial Services Ombudsman are binding on both parties subject only to an appeal by either the complainant or the financial service provider to the High Court.
I have at present no plans to recommend to Government a review of section 57CL(1) of the Central Bank and Financial Services Authority Act 2004.
95. Deputy Finian McGrath asked the Minister for Finance if there are any common sense ways of paying the property tax for those unemployed and on social welfare and-or disability benefits. [23401/13]
View answerAs I have previously informed the House on a number of occasions, for individuals on low incomes the Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral arrangements for owner-occupiers. A person whose only income source is from the Department of Social Protection (DSP) qualifies for deferral. A person who qualifies for full deferral can opt to defer 100% of the LPT liability. A person who qualifies for part deferral can opt to defer 50% of the liability and must pay the balance of LPT. Interest will be charged on LPT amounts deferred at a rate of 4% per annum. Full details of all deferral options are outlined in the Guidelines on Deferral or Part Deferral of Local Property Tax, which are available on Revenue’s website, www.revenue.ie.
The simplest and most straightforward way for some DSP payment recipients to pay their LPT liability is through deduction at source from certain payments that they receive from the Department. The relevant payments are: State Pension (Contributory); State Pension (Non-Contributory); Widow/widower's or Surviving Civil Partner's Contributory Pension; Widow/widower's or Surviving Civil Partner's Non-Contributory Pension; State Pension (Transition); One Parent Family Payment; Invalidity Pension; Carer's Allowance; Disability Allowance; and Blind Pension.
There are no fees or charges associated with deduction at source and the property owner simply indicates their payment preference on the online LPT Return form. It should be noted that Section 92(2) of the Finance (Local Property Tax) Act 2012 (as amended) provides that the LPT deduction may not reduce the net scheme payment below the Supplementary Welfare Allowance (SWA) rate, which is currently €186 per week.
For someone who is temporarily unemployed the deferral option may be the most appropriate approach pending a change in his or her circumstances. It may suit them to pay the tax in cash through one of the three approved payment service providers who are An Post TaxPay, Payzone and Omnivend. A transaction fee will be charged by the service providers concerned. Alternatively, the liable person can use direct debit through a bank or credit union to make equal monthly payments of their LPT liability. The financial institution involved may charge a transaction fee for this option. Details of the full range of payment options are available on Revenue’s website, www.revenue.ie.
96. Deputy Finian McGrath asked the Minister for Finance if there are any exemptions from the local property tax for persons who suffered severe flood damage over the years; and if the Revenue Commissioners will examine this matter. [23409/13]
View answerThere are no specific exemptions from LPT for householders who suffered flood damage. However, LPT is a self-assessed tax so it is a matter for the property owner to calculate the tax due based on his or her assessment of the market value of the property. Issues such as a potential liability to flooding would be one of the factors that a property owner would take into account in valuing their property. Where a property owner makes a valuation in an honest and reasonable manner, that valuation will not be challenged by Revenue in accordance with its normal Customer Service Charter.
