Thursday, 17 Oct 2013

Written Answers Nos. 66-75

Diplomatic Representation

Questions (66)

Seán Ó Fearghaíl

Question:

66. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade in relation to the case of a person (details supplied) whose predicament was raised with him before, if he has had or will have direct contact with the Greek Ambassador to Ireland on this matter; if he shares this Deputy's concerns about the plight and welfare of this Albanian citizen who is married to an Irish citizen; and if he will make a statement on the matter. [44043/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

I am aware of the situation concerning the person referred to by the Deputy. As he is not an Irish citizen it is not possible for my Department to offer him consular assistance. The Greek authorities are under no legal obligation to assist our Embassy with any requests made in connection with this case, as we have no locus standi in the matter. However, on hearing of his detention, and notwithstanding the fact that he is not a citizen of Ireland, the Irish Embassy in Athens made contact with the Greek police in an effort to convey the Irish Government’s interest in this case on the basis that he is married to an Irish citizen. It was made clear to our Embassy that the authorities in Crete would not provide them with any information regarding this case as no Irish citizen was involved. To clarify further, our Embassy has certain rights of communication and contact with Irish citizens in Greece to facilitate the exercise of our consular functions under the Vienna Convention on Consular Relations (1963). The Embassy has no such rights for other persons, even if they are related to Irish citizens and I have no basis on which to raise this case with my Greek counterpart.

Northern Ireland Issues

Questions (67)

Brendan Smith

Question:

67. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his proposals to have further discussions with the Northern Ireland Secretary of State and with Members of the Northern Ireland Executive in relation to the establishment of the Civic Forum; and if he will make a statement on the matter. [44073/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Paragraph 34 of Strand One of the Good Friday Agreement provided for the establishment of a consultative Civic Forum. Section 56 of the Northern Ireland Act1998 required the First Minister and the deputy First Minister, with the approval of the Assembly, to make arrangements for obtaining the views of the Civic Forum.The Forum was set up in October 2000 and was suspended along with the Northern Ireland Assembly in 2002. Following the restoration of devolved powers in May 2007, the then First Minister and deputy First Minister considered the position of the Civic Forum in the re-established devolved arrangements and commissioned a review of the effectiveness and appropriateness of its structure, operation and membership. In April 2013 the NI Assembly voted in favour of an SDLP motion to re-establish the Civic Forum. In my ongoing contacts with the Secretary of State and with the Northern Ireland Executive, including in the context of the North South Ministerial Council, I have pressed for the re-establishment of the Civic Forum as a valuable and, as yet, unimplemented provision of the Good Friday Agreement. I welcome the recent consultations which Richard Haass, Independent Chair of the Panel of Parties, and Meghan O’Sullivan, Independent Vice-Chair of the Panel of Parties, have undertaken with community groups and with representatives of wider civil society in order to ensure that their views and perspectives are considered in the context of the talks process.

I have previously put on the record of the Dáil that I support the establishment of a Civic Forum which would provide for a broad range of voices on community relations and stimulate informed public debate in relation to key societal challenges. On my forthcoming visits to Northern Ireland, including when I visit Derry tomorrow, I will continue the practice of engaging with civil society representatives when time permits.

I will be hosting a Reconciliation Networking Forum event in Dublin Castle on 30 October 2013 for people who are involved in community, peace-building, public policy or reconciliation work, to discuss what civil society, including the community sector, can and should do to meet the reconciliation challenges ahead. This is in line with the view of the Government that a strong and resilient civic society can play an important role in building a more reconciled and prosperous Northern Ireland.

Diplomatic Representation Expenditure

Questions (68)

Clare Daly

Question:

68. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade the representational allowances paid to staff working overseas in embassies, consular offices and other areas, under the following headings; the grade of staff to whom these allowances are paid; the amount of the allowance per person per year; the reason for the allowance whether they are vouched or unvouched; the number of staff that benefitted from these payments; if they are paid for the acquisition of private possessions or are purchases the property of the State; the total amount expended on these allowances overall; and an average figure per embassy or consular office per eligible staff member; and if there are any plans to change this. [44088/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Officers serving at diplomatic missions abroad are required to carry out certain representational duties in line with both the Department’s strategies and mission business plans. Official promotion forms a significant part of the workload of all missions and plays an important part in the achievement of mission and Departmental objectives, including the promotion of Ireland’s political, economic, trade and cultural interests in the European Union and the wider world. A substantial proportion of representational work is associated with St Patrick’s Day events, which are crucial in maintaining contacts and influence with business and political leaders. Representation expenditure (RPN) is incurred within clearly defined Departmental guidelines, which are subject to regular review, and, in general, officers above the grade of HEO / Third Secretary are refunded on the basis of receipts for costs incurred. RPN spending, like all Departmental spending, is subject to rigorous internal controls as well as external audit. RPN resources are shared between Heads of Mission and other diplomatic staff - a total of approximately 253 officers across the mission network in 2012 - with varying amounts allocated to individual officers according to the business priorities of the mission. Expenditure on representational work varies from location to location in line with the staffing complement at each mission, as well as the local cost of living.

The RPN budget has been steadily cut in recent years in line with overall cost-cutting measures and is now well below 2003/2004 levels (€2,442,000 in 2004 compared with €1,706,577 in 2012).

The breakdown per mission in 2012 was as follows:

RPN per Mission 2012	TOTAL
ABU DHABI	16,268.85
ABUJA	20,177.14
ANKARA	20,177.20
ATHENS	18,824.34
ATLANTA - CONSULATE	15,206.24
BEIJING	51,643.89
BERLIN	35,066.43
BERNE	12,552.73
BOSTON	16,996.96
BRASILIA	20,997.66
BRATISLAVA	12,702.76
BRUSSELS (EMBASSY)	21,958.17
BRUSSELS (P.F.P.)	2,914.88
BRUSSELS (PR-EU)	80,279.41
BUCHAREST	17,360.97
BUDAPEST	16,023.15
BUENOS AIRES	22,500.00
CAIRO	20,158.48
CANBERRA	32,622.88
CHICAGO	16,888.83
COPENHAGEN	16,886.34
EDINBURGH	8,489.07
GENEVA	33,942.87
HELSINKI	19,968.77
HOLY SEE	1,688.04
KUALA LUMPUR	24,020.09
LISBON	15,087.21
LJUBLJANA	16,124.30
LONDON	87,570.62
LUXEMBOURG	11,994.13
MADRID	28,777.26
MEXICO	30,890.23
MOSCOW	31,410.07
NEW DELHI	29,241.41
NEW YORK - C.G.	85,817.81
NEW YORK - PMUN	62,926.59
NICOSIA	9,177.60
OSCE - VIENNA	10,657.61
OSLO	24,737.44
OTTAWA	30,644.67
PARIS	52,341.84
PRAGUE	22,171.70
PRETORIA	24,634.48
RAMALLAH	10,974.84
RIGA	10,101.08
RIYADH	24,371.79
ROME	32,060.36
SAN FRANCISCO	16,914.77
SEOUL	22,609.56
SHANGHAI	24,421.84
SINGAPORE	22,584.90
SOFIA	16,013.08
STOCKHOLM	17,274.42
STRASBOURG	16,871.94
SYDNEY	17,025.52
TALLINN	10,232.38
TEHRAN	982.78
TEL AVIV	17,903.88
THE HAGUE	28,096.82
TOKYO	70,047.66
VALLETTA	10,575.01
VIENNA	16,719.22
VILNIUS	7,589.08
WARSAW	29,254.43
WASHINGTON DC	133,430.68
TOTAL	1,706,577.16

In a separate scheme, the Department also provides financial assistance to officers going on posting abroad towards the cost of representational furniture and equipment. The scheme covers a small range of items which are necessary to provide a suitable home environment for the purposes of official entertainment, with particular regard to the representational areas of an officer’s residence. The amount provided ranges from €2,000-€4,000 depending on the officer’s grade. It may be paid only in respect of an officer’s first posting. The items purchased may be retained by the officer for use during future postings. A total of €64,268 was refunded to officers in 2012.

Property Taxation Collection

Questions (69)

Róisín Shortall

Question:

69. Deputy Róisín Shortall asked the Minister for Finance the reason an application to have the local property tax deducted from a person's old age pension (details supplied) in Dublin 9 has not been completed despite the application being lodged in July of this year; when this process will be completed; and if he will make a statement on the matter. [43941/13]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the delay in implementing the preferred Local Property Tax (LPT) payment option in this case occurred because the person in question is not a recipient of the pension type selected on the LPT 1 Return. I understand the LPT deduction at source scheme for Department of Social Protection (DSP) pensions operates by Revenue advising DSP of the individual deductions via electronic file transfer. The individual case data is transferred between the Revenue and DSP computer systems and is downloaded exactly as provided by the taxpayer. Revenue cannot validate the accuracy of the information provided, including the selected payment type, in advance of the electronic file transfer. Specific problems are only identified when an individual transaction fails. Once a transaction fails, DSP notifies Revenue who in turn contacts the taxpayer.

Revenue has only recently received confirmation of the transaction failure in this case and is making immediate direct contact with the person in question to discuss the various payment options available to her, particularly having regard to the period of time that has passed since the LPT 1 Return was lodged. I am assured that the Revenue official making direct contact with the person will outline the various payment options and will assist her in setting up whichever option suits her individual circumstances best.

IBRC Mortgage Loan Book

Questions (70, 74)

Anthony Lawlor

Question:

70. Deputy Anthony Lawlor asked the Minister for Finance the reason persons who wish to buy back their loans from the liquidated Irish Bank Resolution Corporation have been told that they cannot avail of this facility despite it being made available to other loan owners such as corporate entities; and if he will make a statement on the matter. [43928/13]

Catherine Murphy

Question:

74. Deputy Catherine Murphy asked the Minister for Finance if he considers that the sale by the Special Liquidator of Irish Bank Resolution Corporation mortgages to the exclusion of bids from the holders of said mortgages would result primarily in a disproportionately large number of bids from bigger financial institutions, many of which would likely have benefitted from the State guarantee of former Anglo Irish Bank liabilities; if he considers this a fair and appropriate practice considering many of the mortgages are well-performing; and if he will make a statement on the matter. [44011/13]

Written answers

Minister for Finance

I propose to take Questions Nos. 70 and 74 together.

It is important to note that the contractual terms and conditions of customer mortgages and other borrowings have not changed as a result of the appointment of the Special Liquidators to IBRC nor will they change as a result of the ultimate sale of these obligations to a third party.

The Special Liquidators have given significant consideration to and have sought independent advice from PWC in relation to how the residential mortgage portfolio and other loans in IBRC are to be dealt with. Following that independent advice, the Special Liquidators have decided that the residential mortgage book would be split into four segments consisting of performing, non-performing, owner occupier and buy to let mortgages with a view to maximising market interest.

I am advised by the Special Liquidators that the decision to offer the residential mortgage book for sale in this way was arrived at having regard to the scale of the process and size of the IBRC loan book. Furthermore the Special Liquidators have confirmed that the decision to sell these loans as part of a portfolio is the most efficient method of disposal and the one which is most likely to maximise ultimate sales realisations for the Special Liquidators having regard to the public interest.

Government Deficit

Questions (71)

Pearse Doherty

Question:

71. Deputy Pearse Doherty asked the Minister for Finance if he will provide, for the most recent five years for which data is available, the interest on Government borrowing as a proportion of GDP. [43988/13]

Written answers

Minister for Finance

The following table shows general government interest as a proportion of GDP each year since 2009 (including the projected amount for the current year and 2014).

Interest as proportion of GDP	-	-	-	-	-	-
-	2009	2010	2011	2012	2013f	2014f
General government Interest (€ millions)	3,295	4,974	5,325	6,135	7,645	8,190
GDP (at current market prices)	162,284	158,097	162,600	163,938	165,876	170,611
Interest as % GDP	2.0%	3.1%	3.3%	3.7%	4.6%	4.8%

Source: CSO, Department of Finance

The interest figure shown is the consolidated general government interest figure and reflects interest on a range of debt instruments including Government bonds and EU/IMF programme loans.

General government debt (GGD) is a measure of the total gross consolidated debt of the State and includes National debt, as well as the debt of central and local Government bodies.

GGD has increased substantially in recent years as a result of borrowing to fund a series of budget deficits and the support provided to the financial sector. It is expected to peak at approximately €205.9bn (124.1% GDP) in 2013.

The 0.9 percentage point of GDP increase in 2013 over 2012 reflects, in part, the first interest payments on the floating rates bonds which were issued in February 2013 to replace the IBRC Promissory Notes but also the fact that there was an interest holiday on the Promissory Notes in 2011 and 2012.

Credit Unions Issues

Questions (72)

Pearse Doherty

Question:

72. Deputy Pearse Doherty asked the Minister for Finance if the confidential data of members of Newbridge Credit Union has been transferred to any other credit union. [43991/13]

Written answers

Minister for Finance

The Question is referring to the proposed combination between Newbridge Credit Union and Naas Credit Union. The parties involved in this proposed combination are bound by confidentiality agreements and non-disclosure requirements which ensure that no personal data has been compromised. The Central Bank has confirmed that all parties have been and remain fully conscious of obligations under the Data Protection Acts and the Central Bank and Credit Institutions (Resolution) Act 2011 and continue to comply with all such obligations.

Tax Reliefs Eligibility

Questions (73)

Michael McCarthy

Question:

73. Deputy Michael McCarthy asked the Minister for Finance the process by which a hospital/ clinic may be placed on the approved list of institutions for the purpose of claiming health or medical expenses relief; specifically if due consideration will be given to the addition of a facility (details supplied); and if he will make a statement on the matter. [43996/13]

Written answers

Minister for Finance

This PQ appears to be a follow up to PQ 32144/13 wherein we explained that a hospital had to be approved by the Minister for Finance in consultation with the Minister for Health. With regard to claims in respect of tax relief for qualifying health expenses where the relevant health care is obtained outside the State, the following is the current position: - (a) the health expenses are allowable provided that the practitioner (GP, consultant or dentist) is entitled under the laws of the country in which the care is provided to practise medicine or dentistry there; (b) the cost of maintenance or treatment in a hospital, nursing home or clinic is allowable provided the expenses are necessarily incurred in association with the services of a practitioner or refer to diagnostic procedures carried out on the advice of a practitioner.

If the claim relates to the years 2007 – 2009 inclusive, the position was that the cost of the services of a practitioner and the cost of maintenance or treatment in a hospital or similar institution approved for the purposes of the relief by the Minister for Finance after consultation with the Minister for Health is allowable.

With regard to the case specified, the claims in respect of 2007 and 2008 relate to a hospital/clinic that has not been approved. In accordance with the consultation requirements of section 469 of the Taxes Consolidation Act 1997, officials from my Department have commenced a consultation process with the Department of Health in connection with this request. The process may take up to twelve weeks to conclude and my officials will contact the Deputy once a decision has been reached.

Question No. 74 answered with Question No. 70.

Mortgage Debt

Questions (75)

Clare Daly

Question:

75. Deputy Clare Daly asked the Minister for Finance the reason a discount rate was applied to Irish Bank Resolution Corporation loans but this did not apply to residential mortgage holders. [44031/13]

Written answers

Minister for Finance

The Special Liquidators are obligated to ensure that the assets of IBRC are sold at a price which maximises the overall return for its creditors including the State. As a result the Special Liquidators are currently in the process of devising and implementing a sales process in respect of these assets. I have been advised by the Special Liquidators that the valuation process is on- going and that the Special Liquidators are taking professional advice as to whether a loan should be sold individually or as part of a portfolio in order to ensure that the maximum value is obtained for that asset within the instructed timeframe. There is an obligation on the Special Liquidators to ensure that the assets of IBRC are sold at a price that is equal to or in excess of the independent valuations that are being obtained. Should a bid not be received that is in excess of the independent valuation obtained, the loan asset will transfer to NAMA at the independent valuation price. In arriving at the valuation of IBRC loan assets (including residential mortgage loan assets), the independent advisers have been advised to apply a discount rate of 4.5% in determining the present value of future cash flows of the asset in the case where a discounted cash flow valuation methodology is employed. Further, a discount of 2.32% will be applied to all loan asset valuations to take into account security and title issues associated with loan assets, to arrive at the Valuation Price. Should the assets not be sold to a qualified bidder at a price that is equal to or in excess of the Valuation Price then the asset/portfolio will transfer to NAMA at that price.

Therefore I, as Minister for Finance, in my Instructions to the Special Liquidators have not differentiated between residential mortgages loan assets and other loan assets for valuation purposes.

The decision concerning how the loans will be packaged for sale and what bidders constitute qualifying bidders for the purposes of the sales process is to be made by the Special Liquidators.