Written Answers Nos. 212-220
212. Deputy Pearse Doherty asked the Minister for Finance the connection Springboard Mortgages has to Permanent TSB; if he will confirm that Springboard offered sub-prime mortgages; and the number of these mortgages remaining in operation. [37946/13]
View answerI am informed by Permanent TSB that Springboard Mortgages Limited is a wholly-owned subsidiary of Permanent TSB plc. Permanent TSB has informed me that Springboard Mortgages Limited operated as a specialist mortgage lender which provided finance to people who fell outside the credit criteria of traditional banks and building societies. Permanent TSB informs me that new lending by Springboard Mortgages Limited ceased in 2009 and the portfolio is now managed by the non-core division of Permanent TSB Group. I am informed by Permanent TSB that there are approximately 2,200 active accounts in operation.
213. Deputy Ann Phelan asked the Minister for Finance the statistics for outstanding household charges for counties Carlow and Kilkenny; the number of these outstanding payments that will incur penalties; and if he will make a statement on the matter. [37951/13]
View answerI am advised by the Revenue Commissioners that they have recently received details from the Local Government Management Agency (LGMA) of those properties where the Household Charge has been paid or, in respect of which a waiver from the charge has been granted. The Commissioners advise that they have a significant amount of work to do to match the LGMA’s Household Charge Register with the Local Property Tax Register in order to identify cases where the 2012 Household Charge is still unpaid. In addition, the Minister for the Environment, Community and Local Government signed a Regulation, on 27 August last, that further amended the list of “Unfinished Housing Estates” entitling certain additional residential properties to a waiver from the 2012 Household Charge. Accordingly, information on outstanding Household Charges is not currently available and is not likely to be available for some time. Compliance data for the Local Property Tax, broken down on a local authority basis and including Carlow and Kilkenny County Councils, are published on the Commissioners' website at www.revenue.ie/en/tax/lpt/lpt-preliminary-data.pdf.
Section 156 of the Finance (Local Property Tax) Act 2012, as amended, provides that where the Household Charge for 2012 had not been paid by 1 July 2013, the arrears amount is increased to €200 and is regarded as Local Property Tax. The Revenue Commissioners have put in place facilities for property owners to pay the €200 arrears, using any of the following methods: by accessing the LPT online system on Revenue’s website, www.revenue.ie, using their PPSN, Property ID and PIN, and choosing a payment option from direct debit, deduction at source from salary or occupational pension, deduction at source from certain payments received from the Department of Social Protection, deduction at source from scheme payments received from the Department of Agriculture, Food and the Marine, single debit authority, debit or credit card, or cash payments through approved payment service providers; by calling the LPT Helpline - 1890 200 255 - and paying by debit or credit card; or by cheque, postal order or similar which should be sent to Local Property Tax Branch, Revenue Commissioners, PO Box 1, Limerick. The Commissioners recommend that customers note their Property ID and PPSN or tax reference number on the back of the cheque or postal order.
I am informed that to date some €462,000 has been paid directly to the Revenue Commissioners in respect of more than 2,100 properties. Further information on household charge arrears is available in the "frequently asked questions section" of Revenue's local property tax website. Revenue’s priority has been, and continues to be, the implementation and collection of the local property tax. However, in due course, Revenue will use the various debt recovery powers available to them to collect the €200 arrears which will remain as a legal charge on the property.
214. Deputy Jim Daly asked the Minister for Finance if he will detail by name, location and cost the number of capital projects funded by his Department for each of the past five years to date in tabular form in an area (details supplied) in County Cork; and if he will make a statement on the matter. [37961/13]
View answerMy Department did not fund any such capital projects during the period in question.
215. Deputy Brendan Griffin asked the Minister for Finance the efforts to date to separate legacy banking and sovereign debt; the efforts he will make in the future; if he is confident of a positive deal for Ireland; and if he will make a statement on the matter. [37970/13]
View answerAs the Deputy is aware, on 20 June 2013 the Eurogroup of euro area Finance Ministers agreed a framework under which the European Stability Mechanism (ESM) will operate its direct recapitalisation instrument. In addition, the Eurogroup also agreed to consider retroactive recapitalisation of banks on a case-by-case basis once the instrument enters into force. This provides one potential avenue for Ireland to recoup some of the funds it put into the banks in the wake of the banking crash. As each case will be considered on its merits, it would not be appropriate for me to speculate on the implications of this agreement. Both AIB and Bank of Ireland have forecast they will be profitable next year, and coupled with a growing economy, it is likely that these factors will enhance the valuations of the banks. In this context, other potential purchasers may emerge and we may decide that they offer a more attractive route to exit our investments. Therefore, I do not want to tie the future of the banks or the banking system solely to the ESM, but it is vital that we have the option still in place.
216. Deputy Brendan Griffin asked the Minister for Finance if his attention has been drawn to AIB's practice of not allowing customers to transfer their tracker mortgages when moving homes; if he will meet with the chief executive of AIB to discuss same; and if he will make a statement on the matter. [37976/13]
View answerI wish to advise the Deputy that the Bank has informed me in the case of customers in financial distress, the bank does facilitate the transfer of tracker pricing in the event of property trade-down. The position remains under review in relation to all other cases.
217. Deputy Brendan Griffin asked the Minister for Finance the amount allocated annually towards reducing the illicit tobacco trade, counterfeit and illegal; the amount the State estimates is lost in tax revenue because of this trade; and if he will make a statement on the matter. [37977/13]
View answerI am advised by the Revenue Commissioners that Revenue has approximately 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These staff are deployed across a number of compliance and enforcement programmes that reflect the strategic and business priorities set out in its Statement of Strategy and Annual Corporate Plan. These programmes include anti-smuggling controls, audit, assurance checks, debt management, investigations, prosecutions and anti-avoidance interventions. Resources are continuously redeployed across these programmes in response to the Commissioners' assessment of risk. It is not possible, therefore, to disaggregate the resources deployed exclusively on tackling the smuggling and sale of illicit tobacco products.
Regarding the Deputy’s question on lost revenue, I am advised by the Revenue Commissioners that determining the scale of any illicit activity and the associated loss to the Exchequer is problematic, and that any estimates of such losses need to be viewed with caution. I understand that a survey in respect of 2012 carried out for the Revenue Commissioners and the Health Services Executive found that the level of consumption of illicit cigarettes would indicate a notional loss of the order of €240 million in excise duty and VAT in that year, if the consumption of illegal cigarettes were replaced fully by taxed consumption.
Tackling the illicit tobacco trade remains a key objective for Revenue. In the period from January to July 2013, some 24 million cigarettes were seized and 60 court convictions were secured for cigarette smuggling and illegal tobacco sales. Revenue’s Strategy on Combating the Illicit Tobacco Trade (2010-2013), which is published on www.revenue.ie, includes a range of measures designed to complement each other in identifying and targeting the supply and demand sides of the market for illicit tobacco products, with a view to seizing the illicit products and prosecuting those responsible. Key elements of Revenue’s strategy include developing and sharing intelligence on a national, EU and international basis, developing analytics and detection technologies, and ensuring optimum deployment of resources at both point of importation and inland in order to intercept and seize illegal products and to detect and prosecute those involved. In carrying out this important work, Revenue works in close co-operation with other relevant agencies, both nationally and internationally.
218. Deputy Róisín Shortall asked the Minister for Finance if he will outline the basis on which the applicable VAT rate for a given product or service is determined; if he will undertake a comprehensive review of the different rates of VAT that are applied to different product types with a view, on a cost neutral basis, to creating more affordable rates for basic goods and services and higher rates for luxury goods. [38026/13]
View answerI am advised by the Revenue Commissioners that the VAT rating of goods and services is provided for in the Value Added Tax Consolidation Act 2010 which specifies the rates of VAT that apply to different categories of goods and services. These matters are governed by the EU VAT Directive, which generally provides that supplies of goods and services should be subject to VAT at the standard rate, which in Ireland is 23%. The VAT Directive is very restrictive in relation to the application of lower rates of VAT, where Member States may apply up to two reduced rates of VAT of between 5% and 15% but only to specific goods and services set out in Annex III of that Directive. In addition, Member States may retain a zero rate of VAT, or a rate of VAT less than 5%, on goods and services where that rate applied to those goods and services on 1 January 1991. However, no new activity can apply at those rates, and once removed activity cannot be reinstated at those rates. The VAT Directive also allows the continuation of a reduced rate on goods and services not listed in Annex III, where they carried a reduced rate on 1 January 1991. However, the Directive requires that a reduced rate of at least 12% apply to those goods and services. In general, Ireland applies a reduced VAT rate and zero rate of VAT to a far greater range of goods and services than any other EU Member States. In this regard, Ireland already applies the zero rate of VAT to basic foods, and the reduced VAT rate of 13.5% applies to most services, while tourist related services currently apply at the 9% rate. In addition, the 23% standard rate applies to most luxury goods, including cars, petrol, diesel, alcohol, electrical equipment, etc. In this context, while there is generally scope to apply a higher rate of VAT to many goods and services, there is very little scope to do the reverse. With regard to undertaking a comprehensive review of the different rates of VAT that are applied to different product types, the VAT system and its structure are reviewed on an annual basis in the lead-up to the budget.
219. Deputy Seán Kyne asked the Minister for Finance if he is satisfied that the existing primary legislation and regulations provide adequate protection for consumers against exploitation by so-called pay-day lenders. [38085/13]
View answerThe Central Bank has advised me that where the Annual Percentage Rate to be charged on a loan to a consumer is over 23%, a lender will need to get a moneylender’s licence from the Bank unless excluded under the Consumer Credit Act 1995, for example pawnbrokers and credit unions subject to other regulation. A “pay day” loan is usually a short-term loan to cover a borrower's expenses until his or her next payday, with the first loan running for about one month. To date, the Central Bank has not granted a moneylender’s licence to any firm operating with a “Pay Day” loan type business model. Under Section 93(10)(g) of the Consumer Credit Act, 1995 (as amended), the Central Bank can refuse to grant a licence where it deems the costs to be charged on the loan to be excessive. Moneylenders have to apply to the Central Bank to have their licences renewed each year.
220. Deputy Seán Kyne asked the Minister for Finance his concerns regarding the recent reduction in interest rate returns from the State's savings schemes will lessen the attractiveness of these products and the steps being taken to market these options to citizens. [38086/13]
View answerThe National Treasury Management Agency (NTMA) is responsible for the State Savings products which include Savings Certificates, Savings Bonds, Prize Bonds, the National Solidarity Bond and Instalment Savings, as well as the Deposit Accounts such as the Ordinary Deposit Account and the Deposit Account Plus. The NTMA keeps the suite of State Savings products and the interest rates paid on them under constant review to ensure the products remain competitive and attractive to savers, while balancing the funding requirements and financing costs of the State. The State Savings product range are marketed in all post offices and on the website, www.statesavings.ie. They remain attractive even after the recent rates reductions. Savers are continuing to avail of these savings products.
