Written Answers Nos. 221-229
221. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 217 of 16 July 2013, the reason 4.144055254 billion new AIB shares were issued to the national pension reserve fund in lieu of the €280 million dividend due and not 35.44 billion shares which equals the €280 million preference cash dividends due, divided by the .0079 Euro estimated value of AIB shares at the time of the dividend issuance. [38106/13]
View answerAs the Deputy will be aware, AIB issued 4.144 billion additional shares in lieu of the €280 million dividend on our preference shares earlier this year. The number of Bonus Shares issued is calculated according to a set formula by dividing the unpaid dividend amount of €280 million on the 2009 Preference Shares by the average price on an ordinary share over the period of 30 days trading immediately preceding the annual dividend date. For the 2013 allocation, the average price was approximately 6.7 cent per share.
222. Deputy Kevin Humphreys asked the Minister for Finance his plans to abolish or phase out the use of cheques; and if he will make a statement on the matter. [38126/13]
View answerThere are no plans to abolish the use of cheques. However, in line with the recommendations of the National Payments Plan, approved by the Government last April, it is intended that Government Departments, Local Authorities and State Agencies will cease using cheques in their dealings with the business sector as from 19 September 2014, with the exception of instances where electronic alternatives may not be practical. This date will be known as e-Day. This issue was also the subject of a circular by my Department on 6 August 2013 to all Departments, Local Authorities and State Agencies. A copy of this circular is available at http://circulars.gov.ie/pdf/circular/finance/2013/01.pdf. In order to ensure a smooth transition to the new arrangements, and to give the various public sector bodies and the affected businesses plenty of time to make arrangements for paying electronically, a full year’s notice of its implementation is being given.
The particular focus of e-Day is to encourage SMEs to migrate from cheque usage as they are either issuers or receivers of more than 60% of all cheques in Ireland. Businesses and other organisations issue about two thirds of all cheques. SMEs account for nearly 50% of all cheques issued to businesses and almost 90% of business cheques issued to other businesses. A shift from cheques to electronic as a preferred method of payment will result in reduced costs and improved cash-flow for the overall business sector. While e-Day applies to all Government Departments and Offices, Local Authorities and State agencies, it is also hoped that other businesses and organisations will themselves choose to reduce the use of cheques for inward and outward payments.
The National Payments Plan seeks to reduce the cost of Ireland’s payment system (estimated at 1.4% of GNP) through the increased use of more efficient payment methods which will lead to increased competitiveness and efficiency. The National Payments Plan estimates that if Ireland were to match best practice in Europe, savings of up to €1 billion per annum could be made across the economy. The plan is not about closing down options for consumers and businesses, but expanding them. Its vision is for a society where modern forms of payment will be universally accepted, and be the preferred payment choice for most. However, cash will remain a widely used method of payment, while cheques continue to be available for those consumers who want to use them.
223. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding allegations of fraud by a financial institution. [38127/13]
View answerNotwithstanding the fact that the State is a minority shareholder in Bank of Ireland, I must ensure the banks are run on a commercial, cost-effective and independent basis to ensure the value of the banks as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. A Relationship Framework has been specified that defines the nature of the relationship between the Minister for Finance and each bank. These Frameworks were published on 30 March 2012 and can be found at http://banking.finance.gov.ie/presentations-and-latest-documents. Due to customer confidentiality, Bank of Ireland does not discuss details of the individual circumstances of any customer or transaction. Moreover, there are robust processes in place to deal with matters such as those outlined. The issues are outside my remit and should be referred to the State institution with authority in this area, the Financial Services Ombudsman. He will be able to advise on procedures to be followed.
224. Deputy Andrew Doyle asked the Minister for Finance if he will provide an update on the European Commission's plans to regulate the shadow banking sector; and if he will make a statement on the matter. [38243/13]
View answerThe European Commission published a communication on Shadow Banking on 4 September, as a follow up to its Green Paper of March 2012. The communication outlines a number of priorities where the Commission intends to take initiatives, such as transparency of the shadow banking sector, establishment of a framework for money market funds, reform of rules for undertakings for collective investment in transferable securities, securities law and risks associated with securities financing transactions (principally securities lending and repurchase transactions) and establishment of a framework for interactions with banks. My Department is examining the communication and will engage fully with efforts to improve shadow banking regulation. The communication can be accessed at http://ec.europa.eu/internal_market/finances/docs/shadowbanking/130904_communication_en.pdf.
225. Deputy Clare Daly asked the Minister for Finance the amount of funding each bank received for the specific purpose of dealing with distressed family home mortgages; and the amount of that allocated funding that has been used to help distressed family home mortgage holders. [38300/13]
View answerIn early 2011, as part of the agreement with the External Partners, the Central Bank commissioned a detailed and data-driven evaluation of the possible loan losses that would be incurred by the banks in a severe, but not utterly implausible, stress scenario. All the loan books were examined, including the residential mortgage books in Ireland and the UK, taking into account projections in arrears and house prices etc. The results of this work were key inputs into the capital requirements identified in the 2011 PCAR, which totalled €24 billion. Total losses modelled under the stress scenario on Irish mortgages were €9 billion. This comprised €2 billion at BOI, €4.4 billion at AIB/EBS and €2.6 billion at PTSB. However, in the analysis, there was never any specific provision made for the purpose of providing debt relief for distressed family home mortgages. Further details can be found at www.centralbank.ie/regulation/industry-sectors/credit-institutions/Documents/The%20Financial%20Measures%20Programme%20Report.pdf.
227. Deputy Jim Daly asked the Minister for Finance the position regarding a tax refund in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [38357/13]
View answerI am advised by the Revenue Commissioners that a tax refund issued to the individual on 5 September 2013.
228. Deputy Michael McGrath asked the Minister for Finance the number of persons who opted to pay their local property tax by way of weekly deduction from their social welfare payment; if he will confirm the total local property tax liability of those persons for 2013; the number of those people in respect of whom deductions from their weekly social welfare payment have commenced and the total amount collected to date; if he will further confirm the number of those persons in respect of whom deductions from their weekly social welfare payment have not yet commenced; and the reasons for same. [38380/13]
View answerI am advised by the Revenue Commissioners that property owners in respect of approximately 15,500 residential properties, representing a total declared liability for 2013 of approximately €2.26 million, have opted to pay their Local Property Tax (LPT) by way of deduction at source from a Social Welfare payment. The Commissioners also advise that in the majority of cases, deductions from Social Welfare payments have already commenced and approximately €720,000 has been collected by Revenue to date. I am further advised that certain issues arose with this payment option, whereby a number of property owners selected the wrong Social Welfare payment type. This was subsequently corrected and deduction at source in these cases should have already commenced. In a further category of cases that opted for this payment type, the person either selected a Social Welfare payment type for which deduction at source did not apply, or was found not to be in receipt of any Social Welfare payment. In these instances, Revenue contacted the property owner directly advising him or her to select an alternative payment option. The Commissioners also advise that, where operational and administrative issues have arisen, they have been addressed on a case by case basis, and there may be a residue of cases where deduction at source from Social Welfare payments has not yet commenced as these are currently being worked by Revenue. I am advised that it is not possible to provide details of the numbers concerned but they represent a small subset of the numbers who have selected this payment option. For completeness, the Social Welfare payments from which LPT may be paid via deduction at source are as follows: 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.
229. Deputy Michael McGrath asked the Minister for Finance if he will provide an estimate of the cost of setting up the system for the collection of the local property tax including the cost of the time spent on the project by existing Revenue staff and new staff recruited for this specific project, IT costs, consultancy fees, public advertising and any other related costs; and if he will make a statement on the matter. [38383/13]
View answerI am advised by the Revenue Commissioners that the introduction of the Local Property Tax (LPT), which amounts to the largest extension of the self-assessment system in its history, represents a significant administrative challenge for Revenue. The Expenditure Report for 2013, which was published by the Department of Public Expenditure and Reform last December, made a provision of €25.9 million in 2013 for the implementation of LPT. The Commissioners have confirmed that the total cost incurred in setting up LPT operations to the end of August 2013 is €21.099 million. The costs under various headings are as follows:
|
2012 |
2013 (End-Aug) |
|
|
Total Salaries (Permanent and temporary staff) |
€757,000 |
€7,737,000 |
|
External IT Systems Development |
€1,552,000 |
€5,803,000 |
|
Postage |
€1,150,000 |
|
|
Call Centre (Outsourcing) |
€2,276,000 |
|
|
Advertising |
€596,000 |
|
|
Accommodation / Fittings etc. |
€492,000 |
|
|
Financial Transaction Charges |
€399,000 |
|
|
Printing |
€209,000 |
|
|
Valuation Fees |
€66,000 |
|
|
Training Travel Costs |
€35,000 |
|
|
Security |
€27,000 |
|
|
Consultancy Fees |
Nil |
|
|
Total |
€2,309,000 |
€18,790,000 |
I am further advised that by the end of August 2013 over 1.58 million LPT returns had been filed and approximately €191 million had been transferred by Revenue to the Exchequer.
