Written Answers Nos. 126-38
126. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the carry forward measures in 2014 from budget 2013 on the taxation side; and if he will make a statement on the matter. [36346/13]
View answerTaxation provisions included in the Finance Act 2013 and the Finance (Local Property Tax) Act 2012 in relation to measures set out in Budget 2013 will result in an estimated carryover of around €300 million in 2014. There was also carryover from changes to PRSI in Budget 2013. Measures in relation to the maximum allowable pension fund at retirement to be introduced in 2014 were also announced in Budget 2013. A cross-Departmental Working Group of officials has been established to examine, among other things, the changes required to the existing arrangements governing the maximum allowable pension fund at retirement (the Standard Fund Threshold) and other potential alternative approaches for achieving the commitment. The Working Group has also sought views from various interested parties as part of the examination of options for delivering on the Budget commitment. This Working Group is also developing estimates of the likely yield from the changes.
127. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of court cases that the National Asset Management Agency has taken, or plans to take, to secure reversal of asset transfers by NAMA debtors which the agency believes were designed to put assets beyond its reach; if he will provide a breakdown of the type of assets which have been returned to the agency thus far including cash, property and so on; and if he will make a statement on the matter. [36347/13]
View answer169. Deputy Michael McGrath asked the Minister for Finance the number of legal proceedings that the National Asset Management Agency is currently a party to; the number of different law firms representing NAMA in these cases; the legal cases including debt collection, reversal of asset transfers and so forth; the anticipated amount to be spent in 2013 on legal costs; and if he will make a statement on the matter. [36677/13]
View answerI propose to take Questions Nos. 127 and 169 together.
I am advised by NAMA that it has instigated proceedings for the recovery of debt against a number of NAMA debtors, including the initiation of actions for the reversal of asset transfers, actions arising from bankruptcy proceedings and high value repossessions, and that there are currently 33 such proceedings on-going. The Deputy may wish to refer to the NAMA Annual Report and Financial Statements for 2012, which is available on NAMA’s website, www.NAMA.ie. Pages 25-26 of the 2012 Report contain detail on the value and type of additional assets over which the Agency has obtained security, including the reversal of recent asset transfers to relatives and others, and the processes by which the Agency has obtained this security.
Details of NAMA’s legal panels, from which the Agency procures legal services, are available on the NAMA website, www.nama.ie. In addition, the Deputy may wish to refer to my response to a recent Parliamentary Question 274 of the 26th of April 2013, in which I provided details of the legal fees incurred by NAMA to end-2012.
NAMA’s projected budget for 2013, including projected legal costs, is set out in the Agency’s Section 53 Annual Statement for 2013, which is also available on the NAMA website, www.nama.ie.
128. Deputy Michael McGrath asked the Minister for Finance the number of properties that have been sold, that is, legally binding contracts in place by the National Asset Management Agency or by agents acting on behalf of NAMA or by agents appointed by NAMA-controlled debtors; of this number, if he will confirm for each category the number and total value of such properties which were up for sale on the open market and publicly advertised; and if he will make a statement on the matter. [36348/13]
View answerI am advised by NAMA that to end-May 2013 its debtors and receivers had recorded 3,800 cash receipts in respect of asset sales totalling €8.26bn.
NAMA advises that cash receipts may relate to the sale of individual properties or the sale of multiple property units as well as the sale of non-real estate assets. Included in these cash receipts are the sale of 5,500 individual property units, which can range from undeveloped sites and parking spaces to completed office blocks.
NAMA advises that these sales have been achieved in accordance with NAMA board guidelines, a key principle of which is that the conduct of disposals should be on a competitive basis and in accordance with the prevailing market practice for the asset class and jurisdiction to which the sale relates. The NAMA Board guidelines require, where feasible, the sale of assets on the open market and their public advertisement and I am advised by NAMA that in the vast majority of cases the sale of assets securing its loans have been so conducted.
The Deputy may also wish to refer to pages 28-29 of NAMA's recently published Annual Report and Financial Statements for 2012, available on the NAMA website, www.nama.ie, which contain further detail on the sale of properties by NAMA debtors and receivers.
129. Deputy Michael McGrath asked the Minister for Finance the current status of the reports completed by McCann FitzGerald and Ernst and Young into certain corporate governance matters at the former Irish Nationwide Building Society; if the reports have been referred to the Garda and the Office of the Director of Corporate Enforcement; and if he will specify the action being taken on foot of the content of the reports. [36349/13]
View answerI am advised that a number of reports have been produced by Ernst and Young and McCann FitzGerald at the request of the INBS Board. Copies of all of these reports have been provided to the Central Bank of Ireland under the terms of a protocol for limited disclosure agreed between the parties to preserve legal privilege over the material. A report was also provided to the Gardaí in this regard. However, I have been advised that given the on-going nature of the investigations by the Authorities, including in particular the investigation being conducted under the Central Bank’s Administrative Sanctions Procedure into historic lending practices at INBS the reports cannot legally be published at this time. Publication may be considered when the Central Bank proceedings are concluded or when any Garda investigation has been finalised (or any proceedings arising from such investigation concluded).
130. Deputy Michael McGrath asked the Minister for Finance the number of staff on a total remuneration package, including pension payments, allowances and benefits, of between €100,000 and €200,000; between €200,000 and €300,000; between €300,000 and €400,000; between €400,000 and €500,000, and the number with more than €500,000 at the National Asset Management Agency. [36350/13]
View answerNational Asset Management Agency (NAMA) staff are employees of the National Treasury Management Agency (NTMA) and are assigned to NAMA by the NTMA. Details of NTMA salaries by salary band are set out in the NTMA’s annual report. The Annual Report 2012 (expected to be published today 18 July) sets out salary band information in respect of staff assigned to NAMA as of 31 December 2012. These figures, adjusted to include taxable benefits where applicable and in the format requested by the Deputy, are as follows:
|
NTMA Salaries by Salary Band at End-2012 |
(Staff assigned to NAMA) |
|
Up to 100,000 |
132 |
|
€100,001 to €200,000 |
87 |
|
€200,001 to €300,000 |
2 |
|
€300,001 to €400,000 |
3 |
|
Total |
224 |
Notes:
1. The public service pension deduction is applied to NTMA employees.
2. In December 2011 the Minister for Finance requested NTMA employees whose salaries exceeded €200,000 to waive 15 per cent of salary or such amount of salary as exceeds €200,000 if application of the full 15 per cent reduction would bring their salary to below €200,000. Reductions in respect of employees waiving such amounts are reflected in the above table.
The figures above exclude pension contributions. NTMA employees are members of the NTMA defined benefit superannuation scheme or else have Personal Retirement Savings Accounts. The pension benefits of members of the NTMA superannuation scheme prior to 1 January 2010 are based on final salary. The pension benefits of members who joined the scheme on or after 1 January 2010 are based on career average earnings. Unlike most public pension schemes which are funded on a pay as you go basis, the NTMA superannuation scheme is a funded scheme. Pension entitlements are within the standard entitlements in the model public sector defined benefit superannuation scheme. Pension contributions are not paid to individual employees – they are paid into the scheme. The level of potential pension payments to members is dependent on length of service, based on final salary or career average earnings, with 1/80th of salary accruing for each year of service.
131. Deputy Catherine Murphy asked the Minister for Finance if he has considered establishing a national equity management agency, modelled on the National Asset Management Agency, empowered to raise capital independently and designed to process the bulk of the State's non-performing mortgages to a satisfactory resolution; and if he will make a statement on the matter. [36362/13]
View answerI have no plans to establish an Equity Management Agency along the lines described by the Deputy at this time.
132. Deputy Michael McGrath asked the Minister for Finance in respect of each State agency and commercial State company under the aegis of his Department, if he will provide details of the name of each pension scheme; details of the salary percentage contributions made by the employer and the employees; the latest information on the funding position of the scheme; if any changes are planned; and if he will make a statement on the matter. [36372/13]
View answerIn response to the Deputy's question I have been provided with the following information in respect of bodies under the aegis of my Department.
National Treasury Management Agency
Superannuation entitlements of NTMA staff are conferred under a defined benefit superannuation scheme set up under Section 8 of the National Treasury Management Agency Act 1990 – the National Treasury Management Agency Pension Scheme. Contributions are transferred to an externally-managed fund. The Agency contribution is determined on the advice of an independent actuary and is, at present, set at a level of 25 per cent of salary in respect of members of the Scheme prior to 1 January 2010 who receive benefits based on final salary. A contribution of 10 per cent of salary is made in respect of new members of the Scheme from 1 January 2011. These new entrants, including staff who previously availed of Personal Retirement Savings Account arrangements, will receive benefits based on career average earnings.
Employee contributions are 1.5 per cent of salary in respect of final salary members and 2 per cent of salary in respect of career average members.
As indicated in the NTMA Administration Account the scheme deficit was €870,000 at end-2012.
It is planned to amend the terms of the career average scheme for new entrants to reflect the terms of the single public service pension scheme.
Financial Services Ombudsman and Financial Services Ombudsman Bureau
Draft Schemes exist in relation to – Financial Services Ombudsman (Employees) Superannuation Scheme and Financial Services Ombudsman Bureau (Ombudsman and Deputy Ombudsman) Superannuation Scheme. Changes are under consideration based on the Model Public Sector Scheme.
Credit Union Restructuring Board (ReBo)
Staff of ReBo are civil servants and are covered by relevant Civil Service superannuation schemes
The Central Bank of Ireland
The Central Bank’s superannuation scheme is called ‘Central Bank and Financial Services Authority of Ireland Superannuation Scheme 2008. Contributions are defined by standard public sector requirements. Since 2008 the Central Bank scheme has been fully funded. No changes are planned to the scheme at this time.
Details of the scheme are contained in Note 32 of the Central Bank’s Annual Report 2012.
133. Deputy Michael McGrath asked the Minister for Finance the number of miles claimed for and the amount of travel expenses paid to him and each Minister of State in his Department in respect of their functions as a Minister in his Department. [36387/13]
View answerIn response to the Deputy’s question in the period since May 2011 to 31 May 2013 I claimed for some 130,486 kilometres in respect of the use of my car for official business and received a total of €43,157 for the period in question. No payments were made in respect of car usage to the Minister of State by my Department in the period in question.
134. Deputy Regina Doherty asked the Minister for Finance if he will provide, in tabular form, the number of amendments to legislation he proposed during Committee and Report Stages in Seanad Éireann in 2012; if he will provide in tabular form the number of his amendments accepted; and if he will indicate in tabular form the number of amendments accepted from Members of the Seanad, broken down by Senator. [36436/13]
View answerIn the time available my Department has supplied me with the information set out as follows.
Credit Union and Co-operation with Overseas Regulators Act 2012
One hundred and seventy four Government amendments were accepted at Committee Stage in the Seanad and another six were accepted at Report Stage in the Seanad. A wide range of issues were raised by members in both Houses in the course of the debate and many non-Government suggestions were taken on board which were ultimately made by way of Government amendments.
Fiscal Responsibility Act 2012
There were no Government amendments in the Seanad. There were 21 amendments at committee stage by senator, none of which were accepted.
Financial Stability and Reform Private Member’s Bill 2013
This Bill was put forward by Senator Barrett earlier this year the Government did not oppose the Bill and it remains on the Order Paper. The Department of Finance maintain contact with Senator Barrett and his team on matters relating to that Bill.
Finance (Local Property Tax) Act 2012
Senator Jillian van Turnhout proposed an amendment to the Finance (Local Property Tax) Act 2012, the intention of which was to exempt residential properties owned by charities and used solely in connection with recreational activities carried out as the purpose of the charity (for example, hostels owned by the Boy Scouts or Girl Guides used for weekends away). The Government did not accept the Senator’s amendment as drafted but they accepted the spirit of the proposal and provided for this exemption in section 2(c) of the Finance (Local Property Tax) (Amendment) Act 2013. Senators Ó Clochartaigh, Cullinane and Reilly proposed an amendment to the 2012 Act to provide a reduction in the value of the property for LPT purposes for any adaptations made for disabled persons. Although this amendment was not accepted, a similar provision was included in the section 6 of the 2013 Act.
135. Deputy Michael McGrath asked the Minister for Finance his plans to review the situation whereby members of staff of Irish Bank Resolution Corporation at the time the bank was put into special liquidation under the IBRC Act 2013 were only entitled to statutory redundancy whereas colleagues of theirs who had left the bank previous to that received a better redundancy package arising out of an agreed voluntary severance arrangement; and if he will make a statement on the matter. [36448/13]
View answerI acknowledge the significant efforts and commitment made by the staff in IBRC over the past few difficult years whilst the bank was in wind down and the difficulties that arise for staff as a result of the liquidation but it was necessary to take the decision to liquidate IBRC in the larger public interest. I am sure the staff will continue to work to ensure a satisfactory outcome for Irish taxpayers while they remain in employment under the liquidation process.
There are standard rules which apply to the distribution of the assets of companies in liquidation and it would not be appropriate for me to interfere with these rules. Such interference could have the impact of diverting the assets of IBRC from one category of creditor to another outside the normal Companies Acts priorities. Any such interference would be open to challenges in the Irish Courts by unsecured creditors.
Notwithstanding the above, the State does intervene to ensure that statutory redundancy is available for IBRC staff through the Social Insurance Fund and that arrears of pay, sick pay, holiday pay or pay in lieu of statutory notice (limited to €600 per week up to a maximum of eight weeks) are payable from the Insolvency Payments Scheme.
I have been advised by the Special Liquidators that significant steps have already been taken to address staff concerns including the announcement the Special Liquidators that the majority of staff would be retained until March 2014 in order to provide for an orderly wind-down of the business. This should provide some reassurance to IBRC staff relative to the common position in liquidations where staff contracts are terminated on liquidation. Furthermore, it is likely that some staff will, in time, gain employment by NAMA or other purchasers or servicers of the assets of IBRC.
136. Deputy Michael McGrath asked the Minister for Finance when he expects that Irish Bank Resolution Corporation loan assets to be transferred to the National Asset Management Agency; if he will provide details of the valuation process in respect of the loans to ensure that NAMA does not overpay; and if he will make a statement on the matter. [36449/13]
View answerThe Special Liquidators of IBRC have been directed to procure that the valuation of IBRC’s assets is completed by 30 November 2013. This valuation is being undertaken by independent third parties in accordance with the Ministerial Instruction provided to the Special Liquidators. The Special Liquidators have appointed UBS and PWC to value different segments of the IBRC loan portfolio. For the purposes of the valuation, loan assets shall be valued using discounted cash flow analysis, taking into account the timing and reliability of cash flows, together with an appropriate discount factor to determine the value or, where appropriate, in accordance with other standard loan valuation methodologies.
There is an obligation on the Special Liquidators to ensure that the assets of IBRC are sold at a price that is equal to or in excess of the independent valuations that are being obtained. Should a bid not be received that is in excess of the independent valuation obtained, the loan asset will transfer to NAMA at the independent valuation price. The timing of such transfers, should they happen, will depend on a number of factors, including the observed demand for the assets from third parties.
137. Deputy Michael McGrath asked the Minister for Finance when the special liquidator of Irish Bank Resolution Corporation expects to complete the liquidation of the bank and be in a position to inform him of the final statement of affairs; and if he will make a statement on the matter. [36450/13]
View answerOn 10 May 2013, an amendment to the Ministerial Instruction was issued to the Special Liquidators providing further instruction on the deadlines to be met for the valuing and subsequent sale of IBRC assets. Per this revised Instruction, the Special Liquidators are obliged to ensure that the valuation of all IBRC assets is completed by 30 November 2013 and that the sale of all IBRC assets is agreed or completed by no later than 31 December 2013 or as soon as practicable thereafter. The Special Liquidators will be complying with their reporting obligations and as such once the assets of IBRC (in Special Liquidation) have been fully realised and distributed, a final statement of receipts and payments will be filed with the Companies Registration Office.
138. Deputy Michael McGrath asked the Minister for Finance if the special liquidator of Irish Bank Resolution Corporation is in a position to revisit the losses that have been imposed on various credit unions around the country on foot of the deposit-backed bond they held; and if he will make a statement on the matter. [36451/13]
View answerI have been advised that the Special Liquidators are aware of a number of depositors who fall outside the eligibility criteria for the ELG Scheme due to the nature of the investment product. Unfortunately, if a deposit is not eligible under the ELG scheme the depositor will rank as an unsecured creditor in the liquidation. At the time that this investment product was purchased by Credit Unions, there was no additional guarantee provided by the State. It was always the case that the ELG scheme covered only those liabilities which were entered into during the issuance window.
