^Written Answers Nos. 68-77^
68. Deputy Micheál Martin asked the Minister for Finance if he or his Department have investigated the reason insurance companies are refusing to provide quotes to homes that are prone to subsidence; and if he will make a statement on the matter. [41702/13]
View answerAt the outset the Deputy should note that neither I, as Minister for Finance, nor the Central Bank can compel insurers to quote for business. The decision to provide any specific form of insurance cover and the price at which it is offered is a commercial matter based on the assessment an insurer will make of the risks involved. Insurance companies as a matter of course carry out reviews of the risks that they are prepared to insure against and sometimes make decisions to discontinue certain types of cover which they consider high risk, such as homes in an area which is prone to subsidence. These types of decisions are made sometimes on the basis of their broad past experience rather than looking at the individual circumstances of householders. Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Their service can be contacted at (01) 676 1914 or by email at iis@insuranceireland.eu.
69. Deputy Seán Crowe asked the Minister for Finance if his attention has been drawn to the World Bank’s Doing Business Report; his views on the recently published findings of the independent panel of experts who reviewed the Doing Business Report; and the steps he and Irish Aid will take in view of the panel’s findings. [41297/13]
View answerThe Doing Business Report is published annually by the World Bank and it assesses regulations affecting domestic firms in 185 economies and ranks the economies in 10 areas of business regulation with reference mainly to small and medium-sized enterprises. I understand that the purpose of the report is to encourage countries to achieve more efficient regulation; provide measurable benchmarks for reform; and serve as a resource for academics, journalists, researchers and others interested in the business climate of each country.
The report includes detailed subnational data on the ease of doing business, ranks each location and recommends reforms to improve performance in terms of various indicators. This enables countries to compare their business regulations with those of other relevant countries and to relate them to their own objectives for economic growth and development. In October, 2012, after ten years of the Doing Business Report, the President of the World Bank Group appointed an independent panel of experts to review the Report and to seek further ways to improve it. The review of the independent panel was published in June, 2013, and its recommendations included the retention of the Doing Business Report, a move to grouping by categories instead of aggregate rankings, increasing the report’s level of transparency, reform of its methodology and the use of complementary information from enterprise surveys.
As the findings and recommendations of the review are under ongoing consideration by World Bank management, it would not be appropriate to pre-empt the outcome of this process and any subsequent decisions which may be taken. However, I understand that Irish Aid consider that the Doing Business Report provides a clear incentive and encouragement for many developing countries to reform their economies to attract more domestic and foreign investment which, in turn, stimulates growth and reduces poverty.
Ireland ranks well in the Doing Business Report, achieving 15th position in the report published in 2012. As World Bank Governor for Ireland, my Department has a lead role in liaising with the Doing Business team at the Bank. In consultation with the relevant Government Departments and agencies, particular attention has been focused on areas of business regulations identified as in need of improvement in previous reports with a view to ensuring as far as possible that there is full recognition of progress made by Ireland in these areas.
70. Deputy Catherine Murphy asked the Minister for Finance the reason no effort was made on his part under section 14 of the National Asset Management Agency Act, or other similar provisions of that Act, to delay the sale of lands by the National Asset Management Agency at Lucan, County Dublin (details supplied) in view of the evident benefit to the State of retaining public ownership of said lands in and adjacent to an ecologically sensitive and protected natural amenity in the Liffey valley; if options to designate the lands as protected had been explored by his Department prior to the sale; if he will commit to consultation with his colleagues in the Department of the Environment, Community and Local Government and the Department of Arts, Heritage and the Gaeltacht in order to pursue the matter further at this point; and if he will make a statement on the matter. [41672/13]
View answerI refer the Deputy to my previous answer to Question 181 on the 1/10/13. It would not be appropriate for me to comment further on an individual property or transaction. On the general social dividend point, Section 10 of the NAMA Act statutorily obliges NAMA to ‘obtain the best achievable return for the State’ from the management or its acquired loan portfolio. NAMA is obliged to carry out its functions in the context of the overriding commercial objective provided for by Section 10 of the Act and to recover the greatest amount possible for the taxpayer from the sale of loans and properties securing its loans.
As part of ensuring this, it is NAMA’s clear policy that properties and loans that are for sale are openly marketed. This ensures a competitive and transparent sales process and the best possible financial returns for the taxpayer. Importantly however, the NAMA Board has committed to giving first refusal to any public authority, including Government departments, State agencies and local authorities, in respect of the purchase of property from NAMA debtors and receivers which may be suitable for their purposes. In line with this commitment, NAMA has accommodated the release of lands and property for schools, health care facilities, community and recreational amenities and other uses. Examples include:
- The identification of 4,350 houses and apartments for social housing
- The identification of more than 70 sites as potentially suitable for new schools
- The sale of sites to University College Dublin and University College Cork
- The sale of the Opera Centre site in Limerick to Limerick City Council
- The release of lands in Baldoyle, north Co. Dublin to Fingal County Council for parkland
- Co-funding, with Fingal County Council, of an N2-N3 link road through lands in west Dublin to facilitate identified development requirements.
NAMA is also engaging with the Department of Health and the Health Service Executive in relation to possible sites and buildings for primary health care centres and other step-down and community health care facilities.
The Agency, therefore, whilst working to obtain the best achievable financial return for the taxpayer, is very open to realistic proposals that achieve desirable social objectives and there are numerous examples of this. In addition to NAMA’s on-going engagement with public bodies in relation to specific initiatives, such as social housing, it is open to any public body to identify its interest in lands and property securing the Agency’s loans.
I believe the approach determined by NAMA’s Board is contributing in terms of its primary commercial objective, while at the same time contributing to the achievement of wider public policy objectives.
71. Deputy Luke 'Ming' Flanagan asked the Minister for Finance when the Credit Union owned CUSOP will receive its authorisation from the Central Bank; if the Government is fully supportive of this initiative; and if he will make a statement on the matter. [41554/13]
View answerA Credit Union Service Organisation for Payments (CUSOP) requires a Payments Institution licence to operate electronic payment accounts for credit unions. Authorisation for the provision of such a service is a matter for the Central Bank. I have been informed by the Central Bank that they cannot provide details related to any application for authorisation due to the confidentiality provisions set out in Section 33AK of the Central Bank Act 1942 (as amended).
72. Deputy Luke 'Ming' Flanagan asked the Minister for Finance if he will instruct AIB, a State owned bank, to assist the credit union movement with access to the clearing system to enable credit unions to offer full account services to their members; and if he will make a statement on the matter. [41555/13]
View answerAIB does not currently offer this service but, as the Deputy will be aware the Relationship Framework with the bank provides that the State will not intervene in the day-to-day operations of the bank or their management decisions. These frameworks are published on the Department of Finance website. I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank 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. The Commission on Credit Unions in its final report states that while around 10% of credit unions have their own National Sort Code, a higher percentage currently facilitate incoming and outgoing payments, including social welfare payments and card based withdrawals, through a variety of arrangements. BNP Paribas and Bank of Ireland currently offer payment clearing arrangements to credit unions.
73. Deputy Luke 'Ming' Flanagan asked the Minister for Finance the details of the strategy to underpin the solvency and viability of the credit union sector that was presented to the European Commission, the ECB and the IMF; the further discussions with the staff of the European Commission, the ECB and the IMF that will be necessary to clarify some aspects of the restructuring of the credit unions; and if he will make a statement on the matter. [41586/13]
View answerThe details of the strategy to underpin the solvency and viability of the credit union sector are set out in the agreed EU-IMF Programme. As part of this Programme the Government committed to a number of measures to underpin the solvency and viability of the credit union sector. These include the following:
- Establishment of the Commission on Credit Unions and publication of the Commission Report. The Commission reviewed the future of credit unions and made recommendations regarding the most effective regulatory structure for credit unions, taking into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect members’ savings and financial stability;
- Publication of the Credit Union Bill 2012. Over sixty of the recommendations in the Commission Report were included in the Bill;
- Publication of the Credit Union and Co-operation with Overseas Regulators Act 2012. The Act implements the statutory changes recommended in the Commission’s final Report and is set out in four main parts: Prudential requirements; Governance; Stabilisation; and Restructuring;
- Introduction of a Fitness and Probity regime for credit unions;
- Introduction of payments to the Deposit Guarantee Scheme by credit unions;
- Establishment of Credit Union Fund and transfer of €250m to the Fund.
As part of each Troika mission, the European Commission, the ECB and the IMF are updated on progress achieved in the credit union sector. Progress to date includes the strengthened regulatory framework as set out in the Credit Union and Co-operation with Overseas Regulators Act 2012, the publication by the Central Bank of the Credit Union Handbook, the development of a tiered regulatory approach, the introduction of a Fitness and Probity regime for credit unions and the work of the Credit Union Restructuring Board (ReBo). In addition, we have achieved all the benchmarks set out in the EU-IMF Programme in relation to credit unions including:
EU-IMP Programme Summary
|
Objective |
Achieved |
|
Commission on Credit Unions Final Report by end-March 2012 |
Done |
|
Credit Union Bill published by end-September 2012 |
Done |
|
Commencement of Fitness and Probity regime |
Done |
|
Commencement of Deposit Guarantee Scheme |
Done |
|
Credit Union and Co-operation with Overseas Regulators Act 2012 |
Done |
|
€250m transferred into Credit Union Fund |
Done |
74. Deputy Patrick O'Donovan asked the Minister for Finance if he will provide a breakdown by month of the number of appeals to the Credit Review Office and the numbers that have been successful since its creation to August 2013; and if he will make a statement on the matter. [41616/13]
View answerThe Credit Review Office has provided me with the following information:
|
Month |
Eligible Cases |
|
Apr-10 |
2 |
|
May-10 |
5 |
|
Jun-10 |
4 |
|
Jul-10 |
1 |
|
Aug-10 |
4 |
|
Sep-10 |
3 |
|
Oct-10 |
7 |
|
Nov-10 |
8 |
|
Dec-10 |
5 |
|
Jan-11 |
3 |
|
Feb-11 |
6 |
|
Mar-11 |
7 |
|
Apr-11 |
5 |
|
May-11 |
7 |
|
Jun-11 |
5 |
|
Jul-11 |
2 |
|
Aug-11 |
8 |
|
Sep-11 |
8 |
|
Oct-11 |
8 |
|
Nov-11 |
5 |
|
Dec-11 |
4 |
|
Jan-12 |
6 |
|
Feb-12 |
8 |
|
Mar-12 |
5 |
|
Apr-12 |
14 |
|
May-12 |
14 |
|
Jun-12 |
17 |
|
Jul-12 |
14 |
|
Aug-12 |
10 |
|
Sep-12 |
9 |
|
Oct-12 |
14 |
|
Nov-12 |
15 |
|
Dec-12 |
7 |
|
Jan-13 |
11 |
|
Feb-13 |
18 |
|
Mar-13 |
6 |
|
Apr-13 |
8 |
|
May-13 |
7 |
|
Jun-13 |
7 |
|
Jul-13 |
13 |
|
Aug-13 |
8 |
|
Total |
318 |
|
- |
No. |
|
Work in Progress |
20 |
|
Bank Upheld |
118 |
|
Borrower Upheld |
147 |
|
More Work or Withdrawn |
33 |
|
Combined Total |
318 |
These figures show that the Credit Review Office upheld the credit appeal 147 times or 55% of cases concluded to end August 2013. This shows that there is a strong prospect of success for businesses going to the Credit Review Office and I would strongly encourage SMEs refused credit to seek a review by the Office.
75. Deputy Pearse Doherty asked the Minister for Finance the reason he has introduced a statutory instrument that will specifically conceal the names of Anglo Irish Bank and Irish Bank Resolution Corporation creditors; and if he will make a statement on the matter. [41639/13]
View answer76. Deputy Pearse Doherty asked the Minister for Finance the benefit to the taxpayer of the former Anglo Irish Bank and Irish Bank Resolution Corporation from his introduction of a statutory instrument that will conceal the names of creditors and further delay the requirement for the outstanding Anglo Irish Bank statement of affairs which is now seven months late. [41640/13]
View answer77. Deputy Pearse Doherty asked the Minister for Finance if any precedent exists for his legal involvement in the concealing of names in the statement of affairs at Anglo Irish Bank and Irish Bank Resolution Corporation. [41641/13]
View answerI propose to take Questions Nos. 75 to 77, inclusive, together.
Section 224 of the Companies Act, 1963, as it applies in modified form to the liquidation of IBRC pursuant to Section 10 of the IBRC Act, requires the directors of IBRC, unless “the Minister thinks it fit to order otherwise and so orders”, to prepare a Statement of Affairs in respect of IBRC (a “Statement of Affairs”) within 21 days of the date of the liquidation or such later date as I may specify. I have issued two Statutory Instruments (‘SIs’) in relation to the timing and content of the Statement of Affairs to be prepared by the directors of IBRC. The first SI issued on 6th August 2013 (SI 304 of 2013) and a second SI issued on 18th September 2013 (SI 358 of 2013). Both of these SIs were necessary to facilitate requests made on behalf of the directors of IBRC in relation to the timing and content of the Statement of Affairs which they were required to produce.
The effect of the two SIs was to extend the date of submission of the Statement of Affairs out to the 30th September 2013 and also to waive the requirement to include the personal details of debtors and depositors of the bank as at 7th February 2013 in the Statement of Affairs. No precedent exists as these are the first orders to be made under Section 224 of the Companies Act, 1963, as it applies in modified form to the liquidation of IBRC pursuant to Section 10 of the IBRC Act.
I am advised that it was not feasible for the directors of IBRC to prepare a Statement of Affairs for IBRC within 21 days of the appointment of the special liquidators due to the complexity of the balance sheet of IBRC on liquidation and due to the amount of work required to be completed by the directors in preparing the Statement of Affairs. The liquidation of IBRC is arguably the largest and most complex liquidation of a company in the history of the State and I am satisfied that it was simply not feasible for the directors to complete the Statement of Affairs within the period specified in the Companies Act and for that reason I agreed to extend the submission date of the Statement of Affairs to the 30th September 2013.
I also agreed that it would not be appropriate or necessary for the purposes of the orderly winding-up of IBRC for the directors to disclose personal details of the bank’s approximately 2,500 depositors in the Statement of Affairs, as there would be a risk that such details, if they were included in the Statement of Affairs, could quite possibly make their way into the public domain. I further agreed that it would be inappropriate and unnecessary for the purposes of the orderly winding-up of IBRC to require the disclosure of personal information of the approximately 17,000 mortgage holders as well as other debtors of the bank as part of the Statement of Affairs. There is a risk that such information, if disclosed in the Statement of Affairs, could become publicly available and in my view this would not be in the interests of the orderly winding up of IBRC or the maximisation of the value IBRC’s assets.
The directors of IBRC remain obliged to produce a Statement of Affairs which will provide a detailed list of the assets and liabilities of the bank at the time of liquidation and the directors remain required to clearly set out the amounts owing by IBRC to secured, preferential and unsecured creditors at the time of liquidation. Information on aggregate amounts owing by debtors of the bank, and owing by the bank to depositors, upon liquidation will still be included in the Statement of Affairs along with estimates of the recoverable value of the assets.
It is also important to note that the personal information concerning depositors and debtors which will not now be included in the Statement of Affairs is information which is already fully available to the Special Liquidators of the bank. I made the decision to issue both the SIs following discussions and consultations between my officials and the directors of IBRC and the Special Liquidators of IBRC, who had no objection to the terms of the SIs. The exclusion of personal information concerning depositors and debtors of the bank from the Statement of Affairs will not therefore have any adverse impact on the orderly winding-up of the bank’s affairs. It is also important to note that the date of submission of the Statement of Affairs has not been negatively impacted by the introduction of the SIs.
