Written Answers Nos. 59-67
59. Deputy Denis Naughten asked the Minister for Finance if he will provide an update on the tripartite talks taking place at EU level to regulate food securities trading on the stock market; and if he will make a statement on the matter. [41302/13]
View answerProposals to regulate food securities at an EU level form part of the current MiFID II and MiFIR proposals which aim to make financial markets more efficient, resilient and transparent, and to strengthen the protection of investors. The Irish Presidency achieved a Council General Approach on this file which has enabled the Lithuanian Presidency to commence the next stage of the legislative process, which is the engagement via Trilogues with the European Parliament and Commission on this file. The Tripartite discussions in relation to this issue are at an early stage and no agreement has been finalised thus far. This topic is scheduled for further Trilogue discussions in October. It is expected at this stage that agreement on commodities will form part of the final MiFID II package.
This file, along with the European Market Infrastructure Regulation (EMIR), seeks to protect against excessive financial speculation in the food and other commodity derivative markets. The Regulation of derivative trading in the EU has been actively discussed within the EU since September 2010 when the Commission published its proposal for the European Market Infrastructure Regulation (EMIR) to regulate this market in the context of over-the-counter (OTC) trades. The EMIR Regulation, which entered into force on 16 August 2012, implements reforms to derivatives trading, making it safer and more efficient. These reforms include obligations to clear and report derivatives and it also imposes obligations on non-financial firms who use derivatives.
Under the current MiFID II proposals, the level of exemptions available has been reduced and more products will be defined as derivative financial instruments, when compared with MiFID I and will therefore fall within the scope of MiFID II and other financial legislation such as Market Abuse. MiFID II also contains important provisions relating to position management, position limits and product intervention. These provisions are in respect of all financial instruments, including commodity derivatives, and have the purpose of providing regulators with tools to avoid excessive speculation in financial instruments, including commodity derivatives. The Council is proposing that competent authorities will be obligated to establish and apply position limits on the size of a position in a commodity derivative which a person can have over a specified period of time.
Furthermore, competent authorities will have product intervention powers whereby they may prohibit or restrict trading of financial instruments or prohibit or restrict investment activities when there is a threat to the orderly functioning and integrity of financial markets or commodity markets. The European Securities and Markets Authority (ESMA) will have contingency and coordination powers in position management and product intervention to ensure consistent application across all Member States. In the exercise of its powers, ESMA will also have to consult public bodies competent for the oversight, administration and regulation of physical agricultural markets.
EMIR and MiFID II combined are expected to result in a tighter regime for all derivatives, including food securities, whether traded OTC or through exchanges. The measures are intended to keep pace with trends in derivatives trading, in line with G20 commitments made at the 2009 Pittsburgh summit.
We will continue to monitor developments on this file throughout the legislative process.
60. Deputy Gerry Adams asked the Minister for Finance if he will use his powers under section 14 of the National Asset Management Agency Act 2009 to direct NAMA to delay the sale of lands at St. Edmundsbury, County Dublin, so as to enable consideration of the State's interest in these lands in view of the way they might be used to contribute to the social and economic development of the State as per section 2(b)(vii) of the NAMA Act. [41494/13]
View answerI do not intend to use my powers under Section 14 of the NAMA Act to direct NAMA on the sale of this property. The property in question was sold at auction on the 27th of September and had been for sale on the open market for some time, which allowed any interested buyer to make their interest known to the seller. As the Deputy will be aware that given the independence afforded to NAMA by the NAMA Act, and NAMA’s mandate having been established through legislation, I have no role as Minister for Finance in relation to strategies applied by NAMA in fulfilling that mandate. Decisions relating to the sale of properties securing its loans are an operational matter for the Board of NAMA which is guided by its commercial mandate under the NAMA Act 2009. NAMA’s role is that of a secured lender, like any bank they own the debt while the debtor or appointed liquidator still owns and controls the assets and is ultimately responsible for these assets, the Agency is therefore not in a position to compel its debtors and receivers to cede property either free of charge or at less than market value.
NAMA fulfils its social obligation remit by facilitating a dialogue between NAMA debtors and third parties so as to enable the latter to acquire suitable property for social, sporting and other public purposes. To this end the NAMA Board has committed to giving first option to State bodies on the purchase of property which may be suitable for their purposes where these bodies have requirements such as schools, hospitals, and so on. When considering any transaction under its social obligation, Section 10 of the NAMA Act requires NAMA to maximise the return on its loans for the benefit of the taxpayer.
61. Deputy Lucinda Creighton asked the Minister for Finance if he will obtain from the Central Bank a report setting out the numbers of staff at the Central Bank dedicated to on-site audit/inspection of the banks, in particular providing aggregate particulars of their professional qualifications, for example, accountancy, audit, legal and their years experience in property investment, development and construction loan financing; and if he will make a statement on the matter. [41485/13]
View answerAccording to the Central Bank’s Annual Report 2012, which is available on the Central Bank website, the Central Bank employed 1,394 staff at the end of 2012, comprising both permanent and fixed term contract staff. Of this, 293.5 were assigned to Central Banking functions, 622 were assigned to Regulatory areas and 478.5 to Operations. A further 9 were assigned to the Investor Compensation Company Limited. I have been informed by the Central Bank that the Banking Supervision Division has 61 staff currently undertaking on-site inspection work. The Central Bank has a highly educated workforce; the table below outlines the educational qualifications of the 622 staff working in regulatory areas. While there are no statistics available in relation to specific experience in property investment, development and construction, I am informed that the staff have a multiple range of experiences and skill-sets across all of the Central Bank’s functional areas.
|
Total Staff |
622 |
- |
|
3rd Level |
579 |
93% |
|
Masters |
160 |
26% |
|
Doctorate |
6 |
1% |
|
Professional |
170 |
27% |
|
Degrees |
464 |
75% |
In terms of professional qualifications, I have been informed by the Central Bank that at least 130 staff in the Central Bank have professional accountancy qualifications while the following table outlines the level of legal qualifications.
|
BBLS |
8 |
|
BL |
15 |
|
DIP LEGAL STUDIES |
70 |
|
LLB (LAW) |
43 |
|
LLM |
33 |
|
SOLICITOR |
27 |
62. Deputy Brian Stanley asked the Minister for Finance when he will publish the submissions from Bank of Ireland, AIB and PTSB following the Mercer report; and the reason the assertion that the report would include a substantial contribution from the leadership of the banks on pay and pensions has not materialised. [41511/13]
View answerAs I stated in earlier replies to Parliamentary Questions on this matter I can confirm that the three State supported banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested by the Government in response to the Mercer Report. I was not prescriptive in how this was to be achieved respecting their differing State ownership and investment and paths to profitability. As the Deputy will be aware the CEOs of the three banks appeared before the Joint Committee on Finance, Public Expenditure and Reform in early September and were questioned regarding the savings required in response to the Mercer Report. With regard to AIB the CEO stated at the Committee meeting that “The solutions comprise the negotiations around the pension plans, the working hours and the cancellation of all entitlement to increments in the bank.” The bank has now agreed these changes with the AIB staff and is at an advanced stage in negotiating the changes with representatives of the EBS staff.
Bank of Ireland is currently in discussions relating to changes to its pension scheme entitlements through the State Labour relations mechanism. As the Deputy will be aware Permanent TSB has ceased funding of its Defined Benefit pension schemes, which has led to a winding up of these schemes. The Chairman and Non-Executive Directors of Permanent TSB have also taken a 10% reduction in fees. Due to the sensitive nature of the discussions between the banks and their staff, it would not be appropriate to release any further details contained within the letters.
63. Deputy Peter Mathews asked the Minister for Finance if he has considered initiating judicial review proceedings at the European Court of Justice, under Statute Article 35.1 of the ECB Statute, insisting on a full discovery of all the communications between Jean Claude Trichet, his executive directors, the German Government and German Central Bank and records of the ECB contacts, if there were any, with holders of unsecured Irish bank bonds; and if he will make a statement on the matter. [41483/13]
View answerI have not initiated Judicial Review proceedings at the Court of Justice of the European Union in respect of any decision of the ECB. Nor do I consider that the initiation of proceedings as suggested would be necessary. The Government maintains a close co-operative relationship with the ECB and the interests of the State are best served by dealing with the ECB in the context of that relationship. Of course this would not preclude the initiation of such proceedings in the event that same should become necessary because of a legally questionable decision of the ECB which adversely impacted the State and which could not be resolved through dialogue.
64. Deputy Richard Boyd Barrett asked the Minister for Finance if he is considering progressive tax measures such as wealth taxes, higher taxes on top earners or increasing the corporation tax rate as an alternative to measures that would impact further on low and middle income earners and public services in his framing of budget 2014; and if he will make a statement on the matter. [41476/13]
View answerIt is standard practice for the Minister for Finance to review all tax expenditures and reliefs in the run up to annual Budget. However the Deputy will be aware that it is not the practice of the Minister for Finance to discuss the details of measures which may be under consideration as part of the Budget and Finance Bill.
65. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Foreign Affairs and Trade if he intends to keeps the promise to assign 0.7% of spending on overseas development aid by 2015; and if he will make a statement on the matter. [41566/13]
View answerThe Government is committed to Ireland’s overseas aid programme. This commitment was expressed and enhanced by the publication earlier this year of our new Policy on International Development, “One World, One Future” which clearly sets out our vision for a sustainable and just world, and our goals and areas of focus for the coming years. It also reaffirms the centrality of the aid programme to our foreign policy. The new policy states clearly our commitment to achieving the UN target of providing 0.7% of Gross National Product (GNP) for Official Development Assistance (ODA) when economic circumstances permit.
Over the past two years, the Government has broadly stabilised the budget for development assistance - a significant achievement in the context of the very difficult conditions facing the country. For 2012 Ireland provided almost €629 million in ODA, representing 0.47% of GNP. For 2013 the Government has allocated a total of €622 million in ODA. These very significant allocations of public funds are evidence of a consolidation of the development assistance budget and represent a genuine investment on behalf of the Irish people in assisting those less fortunate than ourselves.
66. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade if the children of a person (details supplied) in County Kildare qualify for Irish passports; and if he will make a statement on the matter. [41739/13]
View answerThe Passports Act, 2008 provides, among other things, that only Irish citizens are entitled to be issued with Irish passports. Each application received by the Passport Service must, therefore, demonstrate that person’s entitlement to Irish citizenship before a passport can issue to him/her. The children in question were born in the State in 2008 and 2010, their entitlement to Irish citizenship is, therefore, subject to the terms of section 6A of the Irish Nationality and Citizenship Act, 1956 as amended (the Act). This provides that a person, born in the State on or after 1 January 2005, where neither parent is an Irish or British citizen or otherwise entitled to reside in the State or Northern Ireland without restriction at the time of that person’s birth, may claim citizenship by birth in the State (and thereby establish eligibility for an Irish passport) only where a parent has been lawfully resident in the State for three years of the four years preceding that person’s birth.
In line with guidelines provided by the Department of Justice, Equality and Defence, which is responsible for immigration and citizenship, the proofs of lawful residence of a non-EU parent, which are accepted and considered by this Department for the purposes of passport applications are immigration stamps in passports or the registration cards/books, which are given to persons registering with the Garda National Immigration Bureau (GNIB). These are official documents which can be objectively verified by the Department.
Passport applications for the children were received by the Department in August 2012. Neither of these were finalized for passport issue on the grounds that the amount of their mother’s lawful residence was insufficient to demonstrate their entitlement to Irish citizenship. At the time these were processed, the evidence of the mother’s lawful residence, which were taken into account by the Department, were her registration card and correspondence from GNIB. (The latter detailed the permission that were issued to her.) However, towards the end of last year, the Supreme Court ruled that letters from the Department of Justice, Equality and Defence, which sanctioned a parent’s residence in the State, could be accepted as evidence of lawful residence from the date of the letter. This was an important ruling in that the period of residence between the date of the letter and the date of the first permission, issued by GNIB, was reckonable for the purposes of the Act.
In light of this, a full review of the submitted applications has been done. In the case of the younger sibling, I am pleased to inform you that the additional residence that arises from the Supreme Court ruling is sufficient to demonstrate this child’s entitlement to Irish citizenship and thereby a passport. Accordingly, the Passport Service will make contact with his parents to arrange the submission of a new application form and photographs for his passport.
Unfortunately, the position in regard to the older sibling is unchanged. It is, therefore, open to her parents to pursue the question of her citizenship through the naturalisation process with the Department of Justice, Equality and Defence. In the event that citizenship is granted to her, the evidence of her certificate of naturalisation will in this case be sufficient evidence of her Irish citizenship for her application for a passport.
67. Deputy Joe Higgins asked the Tánaiste and Minister for Foreign Affairs and Trade if he has held any discussions with other heads of state on the issue of Syria; and if he will report back on these discussions. [39143/13]
View answerI spoke with the EU High Representative Cathy Ashton on Wednesday 28 August about the gas attacks in Syria on 21 August 2013. Syria was among the principal topics discussed at the informal meeting of EU Foreign Ministers which I attended in Vilnius on 7 September and where we were briefed on the US perspective by Secretary of State John Kerry. I and my EU colleagues agreed that the Syrian crisis should be addressed through the United Nations process. Syria was also discussed in a wide range of meetings I had at the United Nations General Assembly last week, including with UN Secretary General Ban.
In my address to the UN General Assembly on 28 September, I reiterated my unreserved condemnation of the appalling gas attacks in Ghouta on 21 August and I welcomed the UN Security Council Resolution of 27 September endorsing the framework agreed by the United States and Russia for the complete elimination of Syria’s chemical weapons. I have allocated €200,000 to support the vital work of the Organisation for the Prohibition of Chemical Weapons, assisted by the UN, in implementing these arrangements.
The Security Council has also called for the early convening of an international conference to address all aspects of the conflict and I am greatly encouraged by the indications that this could get under way in a matter of weeks. The inescapable reality is that the crisis can only be resolved politically through a genuinely inclusive negotiating process. In my address, I also reaffirmed the need for the removal of impediments to delivery of assistance necessary to alleviate the dire humanitarian situation and for full accountability for the 21 August gas attack and the many other serious human rights violations perpetrated in Syria.
There is at present no Syrian Ambassador accredited to Ireland, following the departure of the last non-resident Ambassador from London in March 2012. Nor have there been any recent contacts with Syrian diplomatic representatives based at their Embassy in London.
