Written Answers Nos. 49-56
49. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade the reason the Government is spending up to €1 million in upgrading our Embassy in Paris at a time when our elderly, disabled and persons trying to get an education are finding it so difficult to survive financially; and if he will make a statement on the matter. [42894/13]
View answerThe renovation work taking place at the Embassy of Ireland in Paris is primarily to upgrade the Consular offices located in the basement which have little or no natural light. It is necessary to carry out this work at this time as the offices have not been upgraded since 1992 and, as a result, are in serious need of renovation to meet current health and safety standards for a work-place and for public offices in France. The ventilation, lighting and flooring of the offices and public waiting area are being replaced to ensure that the conditions for our staff working there and for the general public are in conformity with health and safety regulations. The public office will also facilitate disabled access by the installation of toilet facilities and a disabled access public counter. The technical installations of the Embassy, notably electricity, plumbing and heating, are also located in the basement area and are being modernised at the same time to ensure greater efficiency, economy and reliability following numerous problems in recent years. The current estimate for the work is in the order of €700,000.
50. Deputy Joe Higgins asked the Tánaiste and Minister for Foreign Affairs and Trade the number of public servants in his Department who are being paid in excess of the Taoiseach's salary and in excess of the Government's pay cap; the annual cost of these excess payments over the past five years; and if he will make a statement on the matter. [43396/13]
View answerThere is no officer in my Department who is paid a salary in excess of that of the Taoiseach.
51. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the payment of property tax; and if he will make a statement on the matter. [42929/13]
View answer61. Deputy Michael Healy-Rae asked the Minister for Finance the position regarding deductions for property tax in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [42927/13]
View answerI propose to take Questions Nos. 51 and 61 together.
In response to Question No. [42929], I am advised by Revenue that the anomaly to which the Deputy refers only arises in a very small number of cases where the PPS numbers are formatted in an old style that is incompatible with the current IT systems. Generally speaking the PPS numbers concerned are those that were historically assigned to a female spouse on marriage by adding the letter ‘W’ to her husband’s PPS number, and were not actively in use for tax purposes. The issue does not affect ‘W’ numbers that were active for tax purposes.
The deduction at source payment method for Local Property Tax (LPT), which commenced in July 2013, operates by Revenue advising the Department of Social Protection of the individual deductions via electronic file transfer. The individual case data are transferred between the Revenue and DSP computer systems and are downloaded exactly as provided by the taxpayer. Revenue cannot validate the accuracy of the information provided, including the status of the PPS number quoted, in advance of the electronic file transfer. A problem is identified only when a transaction fails, in which case the Department of Social Protection notifies Revenue, which in turn makes contact with the taxpayer.
I note the Deputy’s suggestion that Revenue should make reference on the LPT Return to the possibility of old style PPS numbers being invalid. While this is not possible for 2013 and 2014, Revenue will consider it in the future, having regard to the scale of the problem. In the meantime the LPT Frequently Asked Questions will be updated on the Revenue website with information and clarification on the issue.
On the specific case outlined by the Deputy in Question No. [42927], I am informed by the Revenue Commissioners that the person in question selected a number of different payment options when completing the LPT Return. This delayed the initial processing of the Return while the LPT team attempted to clarify with her which option she preferred. Unfortunately, Revenue was not aware that the person’s spouse was recently deceased and arranged deduction at source from a Department of Social Protection pension, using the PPS number quoted, leading to the problem outlined above. In the intervening period, and prior to Revenue making contact with the person, a family member contacted LPT Branch and indicated that the person wanted to change her payment method to a service provider. The LPT team member immediately set up the new payment method as requested.
As the Deputy will appreciate, notwithstanding the delays in setting up a satisfactory payment option, the onus is still on the person to ensure the full LPT liability for 2013 is paid by 31 December 2013. However, I note the Deputy’s comments in regard to her ability to pay the outstanding liability. The Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral and partial deferral arrangements for owner-occupiers where there is an inability to pay the tax. I am advised by Revenue that the person in question, on the basis of the information supplied, appears to qualify for both deferral and partial deferral and Revenue will contact her shortly to establish whether she wishes to avail of either option.
I offer my sympathy to the person concerned on her recent bereavement.
52. Deputy Arthur Spring asked the Minister for Finance further to Parliamentary Question No. 189 of 24 September 2013, if the Central Bank of Ireland set in place a time frame for financial institutions that have been notified by customers to resolve issues regarding the misselling of PPI prior to July 2007; the course of action available to customers if they believe the financial institution is not responding to their claim; and if he will make a statement on the matter. [42792/13]
View answerI have been informed by the Central Bank that their review of payment protection insurance policies covers the selling of these products under the suitability requirements of the Consumer Protection Code, which was introduced in July 2007. Policies from that date only are included as part of the review.
In the case of payment protection insurance policies sold prior to July 2007, customers should contact their financial institutions directly and make a formal complaint which will then be dealt under the complaints handling requirements of the Consumer Protection Code. Section 10.9 of the Code sets timelines by which complaints must be dealt with by such institutions. Institutions have to acknowledge complaints, in writing, within 5 days and must provide updates to the complainant at least every 20 days. Within 5 days of completion of an investigation, the financial institution must inform the complainant of the outcome of the investigation.
I have been informed that the Central Bank has not requested financial institutions to review payment protection insurance policies taken out prior to the implementation of the Consumer Protection Code. Therefore, other than the complaints handling requirements, there is no set timeframe.
53. Deputy Michelle Mulherin asked the Minister for Finance in view of the recent publicity the sale of loans by National Asset Management Agency attracted involving significant sums of money and in some cases multiple bidders, the procedures that are in place even before bidding commences to ensure maximum openness and transparency and competition within the process from the outset; if he will confirm that such bids are required to be handled by one of the professional loan brokers from the panel who have proven experience in this field and at this level to get the best financial result out of such sales; and if he will make a statement on the matter. [42795/13]
View answerNAMA will sell a loan portfolio only where it concludes that this is likely to produce the best financial result for the taxpayer by comparison with the alternatives such as the sale of the underlying relevant secured properties. As has been previously described, NAMA has adopted a very thorough approach in line with international best practice for the sale of loans, central to which is the open marketing of the loans so as to ensure competitiveness and transparency.
For this purpose, panels of loan sale advisors have been selected through a public procurement process for each of the US and Europe. Where there are indications that a potential loan sale could be a feasible commercial option for NAMA relative to alternative options, an advisor from the relevant panel is selected by mini tender to conduct the loan sale process, which includes the public marketing of the loans.
The adviser’s role includes the preparation of a data room and the circulation of outline information to potential qualifying interested parties so as to generate as much competition as possible. The advisor assembles all relevant data relating to the loans, which is made available at the appropriate stage to credible potential purchasers who complete the necessary confidentiality agreements. The sale process is conducted on the basis of all parties having equal access to the necessary information at the same time so as to make fully informed bids and NAMA will only approve a sale where it is satisfied that the price obtainable represents the best possible return for taxpayers.
As part of the formal sales process, potential purchasers are required to provide an undertaking that they will not engage with the debtor or other obligors at any stage during the sales process without NAMA’s pre approval. Both debtors and potential purchasers are aware that the infringement of agreed protocols or undertakings may have an impact on NAMA’s decisions as to whether and to whom it sells a particularly portfolio. Furthermore, where NAMA approves the sale of any loan or approves the sale of any secured property by a debtor, it requires a confirmation that the purchaser is not connected to the debtor or other obligors.
54. Deputy Tom Fleming asked the Minister for Finance the amount that has been raised in the 0.6 % levy in private pensions to date; the amount that has been invested in job creation to date; if any outstanding income that has not been invested in job creation will be reimbursed to the private pension sector; if private pensions will be safeguarded post 2014; and if he will make a statement on the matter. [42796/13]
View answerA temporary 0.6% stamp duty levy on pension fund assets was introduced in the Finance (No.2) Act 2011 as a measure to fund the Jobs Initiative. This was estimated to yield €470 million a year for 4 years. The Revenue Commissioners have advised me that receipts amounted to €463 million in 2011 and €483 million in 2012. This is broadly in line with the amounts anticipated to be collected in those years. €517 million was collected in 2013 to date, due to an increase in the capital value of pension funds.
The table below shows the key revenue and expenditure measures in the Jobs Initiative as announced, to support the protection of existing jobs and the creation of new ones. The details of the expenditure on these measures are a matter for my colleague the Minister for Public Expenditure and Reform, Brendan Howlin T.D.
|
- |
2011 (€m) |
2012 (€m) |
2013 (€m) |
2014 (€m) |
Total |
|
Revenue |
|||||
|
Air Travel Tax |
-15 |
-90 |
-105 |
-105 |
-315 |
|
VAT |
-120 |
-350 |
-350 |
-60 |
-880 |
|
PRSI |
-95 |
-208 |
-201 |
-33 |
-536 |
|
Pension Funds Levy |
+470 |
+470 |
+470 |
+470 |
+1,880 |
|
Expenditure (Additional) |
-40 |
-30 |
-30 |
-30 |
-130 |
|
Net Benefit (+) / Loss (-) |
+201 |
-208 |
-216 |
+242 |
+19 |
It should be noted that the proposed suspension of the Air Travel Tax, at an estimated cost of €15 million in 2011, €90 million in 2012 and €105 million in a full year, was conditional on the airlines increasing passenger numbers by restoring previously cancelled routes and by creating new routes. Negotiations with the airlines were not successful and the Minister for Transport Tourism and Sport, Mr Leo Varadkar T.D., advised against reducing the Air Travel Tax to zero.
On the subject of outstanding income, I wish to advise the Deputy that it will only be when the levy has ended and the accompanying expenditure and revenue measures have also ceased that it will be possible to analyse the situation. At any given point before then, it would not be surprising if the income and expenditure did not match.
Finally regarding post 2014, I will not comment on this at this juncture, rather a decision will be made at the appropriate time in light of updates to fiscal and economic forecasts.
55. Deputy Michelle Mulherin asked the Minister for Finance his view on recent press reports that available overseas capital for Ireland will be substantially absorbed by portfolios of loans and properties being offered by overseas banks and therefore will not be available for investment in National Asset Management Agency assets; and if he will make a statement on the matter. [42798/13]
View answerNAMA’s objective is to recover the greatest amount possible for the taxpayer through the management and disposal of its acquired loans and the property assets securing them. In line with this, NAMA does not engage in fire sales, which is the sale of a loan or asset at below its intrinsic value. Rather, loans and properties are made available for sale in line with the absorption capacity of the relevant market.
Through this approach, NAMA has, to date, generated €14bn in cash, including €9.4bn from asset and loans sales. This includes the sale of over 2,000 individual property assets in Ireland and there are currently €1.5bn worth of Irish commercial and residential properties on the market for sale through NAMA debtors and receivers. The Deputy will also be aware that NAMA will be bringing two portfolios, comprising prime residential and commercial property, with an estimated value of €350-€400m, to the market over the coming weeks, which follows the recent sale by the Agency of an €800m loan portfolio secured almost entirely on Irish property. I am satisfied there are ample opportunities for market participants to purchase assets secured by NAMA.
In terms of other investments in NAMA assets, NAMA is providing development funding, on a commercial basis, for the completion of existing projects and the development of new projects to meet the growth needs of the economy. NAMA has approved €800 million in advances for projects in Ireland, over €500 million of which has been drawn down. This is part of NAMA’s capital funding plan to advance at least €2 billion for the projects in Ireland over the period to the end of 2016.
The types of projects being supported include residential, commercial and retail projects around the country for example The Grange, Stillorgan, Co Dublin which is a mixed residential and commercial development, the Oranmore Town Centre, Co Galway which involves the completion of a commercial development consisting of retail and office space and Phase 2 of Scotch Hall, Drogheda, Co Louth to comprise of additional retails units and leisure facilities. NAMA also plans to advance significant new developments, for example, the development of substantial commercial and residential development in the Dublin Docklands to accommodate the continued expansion of the IFSC and the creation of new business and technology hubs linked to existing companies such as Google and Facebook.
56. Deputy Michael McGrath asked the Minister for Finance if he will investigate a tax matter raised in correspondence (details supplied); and if he will make a statement on the matter. [42836/13]
View answerThis is a matter for the Revenue Commissioners who advise me that they will investigate the matter raised by Deputy McGrath. For reason of taxpayer confidentiality, they will not be in a position to advise the Deputy of the outcome, but they will communicate directly with the person who contacted the Deputy regarding his personal tax affairs.
