Terence Flanagan
Question:190. Deputy Terence Flanagan asked the Minister for Finance his views on Permanent TSB taking over Newbridge Credit Union (details supplied); and if he will make a statement on the matter. [49170/13]
View answerCredit Unions
Questions (190)
Written answers
I have no concerns in relation to the transfer of Newbridge Credit Union to Permanent TSB. Although Permanent TSB was recapitalised in 2011, it is compliant with its regulatory capital requirements and as of June 2013 it had a Core Tier 1 capital ratio of 15.7%. This compares to a Central Bank of Ireland minimum requirement of 10.5%. As I have previously stated, it was in the context of a possible liquidation that my Department, with the support of the Central Bank, requested Permanent TSB to undertake this transaction. The participation of Permanent TSB in this process has provided an alternative to liquidation and in doing so has brought stability and certainty to the situation and specifically to the members and staff of Newbridge Credit Union. This transfer means that Newbridge Credit Union members will continue to have full and uninterrupted access to their savings.
Financial Services Regulation
Questions (191)
Terence Flanagan
Question:191. Deputy Terence Flanagan asked the Minister for Finance the reason there is currently no upper rate limit on the interest that licensed moneylenders can charge on loans; his plans to introduce legislation in this area; and if he will make a statement on the matter. [49174/13]
View answerWritten answers
Moneylenders are governed by a number of legislative obligations and supervisory requirements. Moneylenders are required to hold a licence in accordance with the provisions of the Consumer Credit Act 1995 as amended. This licence is issued by the Central Bank and must be renewed annually. Section 93(10)(g) of the Act states that the Bank may refuse to grant a licence where, in its opinion, the cost of credit to be charged is excessive or any of the terms or conditions attaching thereto are unfair.
Introducing an upper limit could make the licenced moneylending sector unviable, forcing consumers who are unable to access other conventional credit to turn to illegal, unlicensed moneylenders.
Furthermore, the annual percentage rate allowable under moneylending licences is publically stated on the public register for moneylenders. This register is available on the Central Bank’s website.
While it should be noted that moneylender loans can be more expensive than other forms of credit, many of these loans are unique in nature. For example, they may be small value loans, over a short term and repayments may be collected at the consumer’s home.
The Central Bank recently published a “Report on the Licensed Moneylending Industry”. The report is available on the Central Bank’s website. It is particularly striking that the figures show that moneylenders provide a service which many people are happy to use, even though the interest rate charged is very high. The report also found that the majority of customers know and/or understand the interest on their loan, the cost of credit and the APR.
Pension Provisions
Questions (192)
Denis Naughten
Question:192. Deputy Denis Naughten asked the Minister for Finance if a person (details supplied) is receiving a pension from the former Anglo Irish Bank; the value of that pension; if these payments are made from a private pension fund or through an Exchequer supported fund; and if he will make a statement on the matter. [49213/13]
View answerWritten answers
I am advised that no Exchequer support was used to fund the pension entitlements of the individual referred to. I am further advised that Pension Schemes that were available to staff at the Anglo Irish Bank included defined benefit schemes (which closed to new membership in 1994) and a defined contribution scheme. These schemes are funded schemes, and are operated by appointed trustees. The schemes are operated independently from the bank under distinct rules and legislation. I am advised by the Special Liquidators that that due to obligations under Data Protection Acts 1988 and 2003 they cannot comment on the emoluments of individual staff members of IBRC (in Special Liquidation).
Property Taxation Assessments
Questions (193)
John McGuinness
Question:193. Deputy John McGuinness asked the Minister for Finance the reason a person (details supplied) in County Kilkenny has been required to pay €1,125 property tax for 2014 in view of the fact that they paid €125 in 2013; and if his Department's records will be corrected as soon as possible. [49218/13]
View answerWritten answers
The administration of the Local Property Tax is a matter for the Revenue Commissioners. My Department does not hold any records on individual tax payers. I am advised by Revenue that a key aspect of the work it has undertaken in connection with the administration of Local Property Tax (LPT) has been the development of a register of residential properties in the State. The development of the register required Revenue to extract and consolidate data from multiple Government and non-Government sources.
The Deputy will be aware that Revenue clearly indicated at the commencement of the LPT project that errors in the compilation of the Property Register were inevitable given the scale of the task and requested that anybody who received incorrect information in regard to their properties to contact the LPT Helpline at 1890 200255 or to write to the LPT Branch, PO Box 1, Ennis, Co Clare.
On the specific case mentioned by the Deputy, the person in question was linked to a property at Goresbridge, Kilkenny on the basis of records imported by Revenue from another Government agency database, during the development of the LPT Property Register. Revenue has confirmed that the LPT Return in respect of this property issued to the person in March 2013. The correspondence included with the Return clearly requested that if the person was not the liable owner that he immediately notify Revenue. There is no record of any contact or correspondence disputing the accuracy of the property record being received from the person.
The person did however file two separate returns, thereby generating two separate property records, in respect of a property at Dublin Road, Kilkenny. The person indicated a Band 4 liability and paid €202 in respect of the LPT due.
The 2014 LPT charge, which the person received in October was based on the information input to the Property Register for the 2013 half year, i.e. one Band 3 property at €315 and two Band 4 properties at €810 giving a total of €1,125. The person’s records also show an amount outstanding in respect of the Household Charge which also now needs to be addressed.
On further investigation it appears that the linkage of the property at Goresbridge to the person may be incorrect but this needs to be confirmed. It is also clear that the second property at Dublin Road was set up by the person in error and has now been removed from the Register.
Revenue will now make direct contact with the person in the coming days to confirm his connection or otherwise to the Goresbridge property and to confirm his correct LPT/Household Charge liability.
Property Taxation Data
Questions (194)
John McGuinness
Question:194. Deputy John McGuinness asked the Minister for Finance if the client details and record of payment of the property tax in 2013 and for 2014 will be confirmed in the case of a person (details supplied) in County Kilkenny, in view of the fact that they self-assessed in 2013 and paid by credit card. [49219/13]
View answerWritten answers
I am advised by Revenue that payments of Local Property Tax (LPT) are acknowledged in all circumstances where a person pays via the online service at www.revenue.ie. On the specific case mentioned by the Deputy I can confirm that payment for the 2013 LPT liability was received on the 29 May 2013 via the online service and is receipted on the person’s account under the appropriate Property ID number.
Revenue has further confirmed to me that in the original construction of the Property Register, the person in question was incorrectly allocated two Property ID numbers for the same property. The duplication was subsequently identified as part of Revenue’s data matching programme and one of the Property ID numbers was deleted.
There is no requirement on the person to confirm his payment method for 2014 until 27 November 2013 assuming that he again intends to meet his obligations through the online system. There is also no requirement on him to make the 2014 payment before 1 January 2014. However, the person should be aware that if he chooses to pay by credit card as he did for 2013 then that payment will be deducted immediately. This is the nature of credit/debit card payments.
EU-IMF Programme of Support
Questions (195)
Joe McHugh
Question:195. Deputy Joe McHugh asked the Minister for Finance if he will provide an update on engagements with the troika in respect of an exit from the EU-IMF-European Central Bank bailout programme. [44107/13]
View answerWritten answers
As the Deputy will be aware, the Government decided on 14 November that Ireland is now in the best position to exit the EU-IMF programme of financial assistance on December 15 without the need to pre-arrange a new precautionary credit line from our EU and IMF partners. Following a careful and thorough assessment of all of the available options, and broad consultation with the European Commission, the ECB, the IMF, along with the President and members of the Eurogroup, the Governor of the Central Bank of Ireland and the NTMA, the decision was taken to exit without a pre-arranged precautionary facility or backstop.
NewERA Remit
Questions (196)
Thomas P. Broughan
Question:196. Deputy Thomas P. Broughan asked the Minister for Finance if the review undertaken by NewERA of State companies to assess their financial performance has been completed. [42294/13]
View answerWritten answers
The core role of NewERA involves the ongoing oversight of the financial performance, corporate strategy, capital and investment plans of the five commercial semi-state companies within its remit - ESB, Bord Gáis Éireann (BGE), EirGrid, Bord na Móna and Coillte. NewERA works closely with the relevant Government Departments and the companies, with NewERA analysing the financial performance of each of these entities based on the annual audited accounts of the company, the interim accounts of the company and using output from quarterly financial performance meetings which have been initiated with the companies since NewERA was established. This work is undertaken on an ongoing basis.
The Annual Report of the National Treasury Management Agency 2012, which is available on the Agency’s website (www.ntma.ie), includes a section on the activities NewERA carried out in 2012 (pages 23-25).
Tax Reliefs Eligibility
Questions (197)
Noel Harrington
Question:197. Deputy Noel Harrington asked the Minister for Finance the relief available to a person who, while working, is not earning enough to pay tax and wishes to carry out home improvements; if he will consider extending the recently announced scheme relating to tax rebates to allow those on low incomes to reclaim VAT; and if he will make a statement on the matter. [49245/13]
View answerWritten answers
As the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. There is no VAT relief under this scheme. I have no plans to extend this initiative to individuals who have no tax liability. However, the tax credit is being provided over a period of two years in order to assist those with low incomes. In addition, unused credits may be carried forward to future years.
It is worth noting that the SEAI operate the Better Energy Homes Scheme where cash grants are provided for qualifying works. The SEAI also install energy efficiency measures at no cost to qualifying individuals under the Warmer Homes Scheme. Further information on these schemes is available on the SEAI website, www.seai.ie .
Foreign Direct Investment
Questions (198)
Catherine Murphy
Question:198. Deputy Catherine Murphy asked the Minister for Finance if, given the levels of capital which foreign multinationals retain here and do not repatriate, he has proposed a Government-secured investment facility to direct much-needed capital from this stockpile towards projects with the potential to create jobs, or towards training and development in areas where Ireland has a skills gap; and if he will make a statement on the matter. [42702/13]
View answerWritten answers
The National Treasury Management Agency (NTMA) offers a suite of investment products – long-term bonds, short-term paper, State Savings including the National Solidarity Bond, inflation-linked bonds – which are designed to appeal to as wide a spectrum of investors as possible. The funding raised by those investment products is used to fund Government expenditure. In relation to the Deputy’s suggestion of an investment facility, as recently announced, the Government has decided to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the National Pensions Reserve Fund (NPRF). The discretionary assets of the NPRF, worth some €6.6 billion currently, will be channelled towards productive investment on commercial terms in the Irish economy. Using the Ireland Strategic Investment Fund, we will maximise our resources to enhance growth in the Irish economy and improve key infrastructure to maintain Ireland's attractiveness as a place to do business and to create jobs. The NPRF has already established funds that support both strategic projects and a number that support SME financing. Additionally, my colleague the Minister for Jobs, Enterprise and Innovation, Richard Bruton TD, announced on Monday 4 November 2013 the establishment of a new fund of €125 million managed by MML Growth Capital Partners Ireland which will focus on investing in Irish SMEs.
Credit Unions
Questions (199)
Ciara Conway
Question:199. Deputy Ciara Conway asked the Minister for Finance his views on the recent announcement by the Central Bank to grant permission to wind up a credit union (details supplied) and to allow it to be taken over by a bank; if he will respond to recent commentary that 56 credit unions countrywide were found to have insufficient capital as per a report by the Commission on Credit Unions; his views on the future role of credit unions; and if there will be a requirement for any other credit unions to merge in the future. [49294/13]
View answerWritten answers
The Central Bank has secured a High Court order to transfer the assets and liabilities of Newbridge Credit Union to Permanent TSB; Newbridge Credit Union has not been wound-up. In serving the High Court order, the Central Bank had to make a case to the Court that winding up was not in the public interest. The resolution report (available at www.centralbank.ie) sets out the detailed Central Bank case on this point, including the fact that winding up, or liquidation, would have led to losses by savers at Newbridge Credit Union. I recognise the important role of credit unions as a volunteer co-operative movement and the distinction between them and other types of financial institutions and I am determined to support a strengthened credit union movement and would encourage the movement to work with its stronger credit unions so they can provide a viable option for assisting weaker credit unions.
The figure of 56 credit unions referred to in the question is taken from the Report of the Commission on Credit Unions. However, the Central Bank has provided updated statistics based on data as at 30 September 2013. These show that some 20 credit unions have reported regulatory reserves below the minimum requirement of 10 per cent of assets, giving rise to a capital shortfall in the region of €11 million in total.
The Commission on Credit Unions, in its Report, made a number of recommendations regarding the future of credit unions. These are being implemented in the tiered regulatory approach and will see some credit unions opting to provide additional services. The core objective of these reforms is to provide the most effective regulatory structure for credit unions, taking account of 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.
The restructuring process will be overseen by the Credit Union Restructuring Board (ReBo) which is an independent statutory body established by the 2012 Act. Restructuring will be carried out on a voluntary, incentivised and time-bound basis and €250 million has been allocated to the Credit Union Fund to support this process.
In addition, the resolution process may also involve the transfer of assets and liabilities of credit unions. The Resolution Fund contains €250 to support resolution action and was used for the transfer of assets and liabilities of Newbridge Credit Union to Permanent TSB.
Banking Sector
Questions (200)
Lucinda Creighton
Question:200. Deputy Lucinda Creighton asked the Minister for Finance further to Parliamentary Questions Nos. 97, 100 and 101 of 12 November 2013, the number of days it will take for the information requested to be provided; if he will also provide the data requested in Parliamentary Questions Nos. 97, 100 and 101 with respect to the National Treasury Management Agency; and if he will make a statement on the matter. [49314/13]
View answerWritten answers
I can confirm that the information requested in Parliamentary Questions Numbers 97, 100 and 101 of 12 November 2013 was forwarded to the Deputy on 15 November 2013. With regard to the data requested in respect of the National Treasury Management Agency (NTMA), it has not been possible for the Agency to collate the information requested in the time available. I will write to the Deputy directly with the information as soon as it becomes available.
Tax Reliefs Availability
Questions (201)
Alan Farrell
Question:201. Deputy Alan Farrell asked the Minister for Finance if he will introduce tax provisions that complement the maintenance of old buildings, prevent demolition or encourage sponsorship and donation to heritage foundations; and if he will make a statement on the matter. [49337/13]
View answerWritten answers
There are a number of tax provisions already in the Taxes Consolidation Act 1997 (TCA) that provide reliefs and incentives to preserve and renovate built heritage.
Significant Buildings and Gardens
Section 482 of the TCA provides for tax relief for expenditure incurred on the repair, maintenance or restoration of approved buildings or gardens. For a building or garden to be approved it must be a building or garden which is intrinsically of significant scientific, historical, architectural or aesthetic interest, as determined by the Minister for Environment, Heritage and Local Government. A garden may also be determined as being intrinsically of significant horticultural interest. The building or garden must be reasonably accessible to members of the public, as determined by the Revenue Commissioners.
Donations of Heritage Items
Section 1003 of the TCA provides tax relief of 80% of the market value for the donation of heritage items to certain approved bodies.
Donations of Heritage Property
Section 1003A of the TCA provides tax relief of 50% of the market value for the donation of heritage property to the Irish Heritage Trust or the Office of Public Works.
Tax Relief for Donations
Section 848A of the TCA provides for tax relief on donations to approved bodies. The list of approved bodies for the purposes of section 848A, which includes eligible charities, bodies approved for education in the arts and eligible primary, secondary and third level institutions, is available on the Revenue website at www.revenue.ie . The Irish Heritage Trust and the Heritage Council are two examples of heritage bodies that qualify for the relief.
Charitable Tax Exemption
In order to qualify for a charitable tax exemption, a body or trust must be established for charitable purposes only and must apply all of its income to those purposes. A list of bodies that have a charitable tax exemption is available on the Revenue Commissioners web site at the following link: http://www.revenue.ie/en/about/publications/charities_alpha.xls.
Living City Initiative
The Living City Initiative is a pilot project which was enacted in section 30 of Finance Act 2013 and was targeted initially at certain designated areas of Limerick and Waterford. Finance Act 2013 sets out the parameters of the scheme.
In my Budget speech on 15 October, I announced the extension of the Initiative to 4 other cities (Dublin, Cork, Galway and Kilkenny). As was the case with Limerick and Waterford, the Initiative will be targeted at certain designated neglected areas of these 4 cities – these designated areas will be agreed in conjunction with the relevant local authorities. It is not possible at this stage to say what streets will be included within a designated area, but it will not extend to an entire city. Finance Bill (no 2) 2013 also allows for certain amendments to the existing scheme to be made, including the eligibility date for buildings within these areas – now defined as “pre-1915”.
The Initiative is made up of a series of residential and retail tax incentives, the purpose of which is to try to break the spiral of urban depopulation and decay which afflicts many of our cities by encouraging families to return to live and work in these inner city centres.
An independent cost benefit analysis on the pilot project was published on my Department’s website on Budget day. An application for EU State Aid approval will be submitted shortly – it could not be submitted until the independent cost benefit analysis was received. It is not known how long the approval process will last but it can reasonably be expected to take several months.
Pyrite Remediation Programme
Questions (202)
Alan Farrell
Question:202. Deputy Alan Farrell asked the Minister for Finance if he will consider a tax write-off, rebate or concession for property owners who have been affected by the pyrite problem in the Leinster region and do not qualify under the Pyrite Resolution Board criteria for funding toward the remediation of their property; and if he will make a statement on the matter. [49338/13]
View answerWritten answers
The Finance (Local Property Tax) Act 2012 (as amended) provides for a number of specific exemptions from the charge to Local Property Tax (LPT), as well as the possibility of deferring the charge in certain cases of hardship. Exemptions from or deferral of the Local Property Tax only apply in the circumstances provided for in the legislation. Accordingly, whilst those who have been affected by the pyrite problem, but do not qualify for relief under the Pyrite Remediation Scheme, may be exempt from LPT for another reason, or may be entitled to avail of a deferral arrangement under the provisions contained in the legislation, there is no specific exemption in such cases.
I am not proposing to extend the relief from Local Property Tax as provided for in the legislation for property owners who have been affected by pyrite.
As the Deputy is aware the Pyrite Remediation Scheme is under the remit of my colleague, the Minister for the Environment, Community and Local Government.
Tax Code
Questions (203)
Jim Daly
Question:203. Deputy Jim Daly asked the Minister for Finance his plans regarding alterations to the current revenue pay and file date; and if he will make a statement on the matter. [49375/13]
View answerWritten answers
Under the regulations known as the “Two-Pack” which were formally adopted on 30th May 2013, a common budgetary timeline is being introduced for all Euro Area member states. Specifically:
- the draft budget for central government and the main parameters of the draft budgets for all the other sub-sectors of the general government must be published by the 15th of October each year;
- draft budgetary plans in a common format must be submitted by all Euro area Member States not in a programme of assistance; and
- the budget for the central government must be adopted or fixed upon and published by the 31st of December each year.
In light of these requirements, the Government decided to bring Budget Day forward from the first week in December to on or before the 15th of October from now on. Accordingly, I presented Budget 2014 on Tuesday, 15th October. The Government also decided that the Finance Bill should complete its passage through the Oireachtas by the 31st of December each year. One of the most critical elements of the Budget process is the accuracy of systems for forecasting potential revenue yield in the year in question prior to the Budget actually taking place.
In the context of a December Budget Day, the availability prior to the Budget of information on cumulative tax yields to the end of November gave a high degree of certainty to the estimation of potential outturn for the year. For example, cumulative tax yield to the end of November 2012 was €33.8bn, which represented 92% of the full year outturn of €36.6bn. On the other hand, cumulative yield to end September, at €26.1bn, represented only 71.3% of the eventual outturn.
The scope for unanticipated events which would lead to either a higher or lower than projected outturn is considerably increased in the context of an October Budget. In addition the ability to project future yield is compromised. Consequently, measures which would result in improvements in the availability of information or increases in the proportion of total yield already available prior to the Budget have to be considered.
The main areas where scope exists to introduce such improvements relate to the income tax Pay & File arrangements and on 11th October I initiated a consultation process on a revision of the existing arrangements.
I am aware of the concerns that have been raised and the results of this consultation process, and any other representations received, are a factor in my decision making process regarding the necessary measures to be taken.
I would reiterate that changes to the Pay and File regime are necessary as a result of the move to an earlier Budget Day, following the adoption of the Two-Pack and will provide increased certainty around the annual tax take.
Tax Code
Questions (204)
Michael Creed
Question:204. Deputy Michael Creed asked the Minister for Finance the implication for those in the hotel industry of the capital allowances guillotine that comes into effect on 31 December 2014; and if he will make a statement on the matter. [49378/13]
View answerWritten answers
The measure to which the Deputy is referring was announced by me in the Budget in December 2011 and provided for in the Finance Act 2012. This was complemented, at that time, by the introduction of an additional 5% USC charge in the form of a property relief surcharge on the use of property reliefs by certain higher earning individuals. The broad intention of these two measures was to reduce the legacy of property reliefs in line with Government policy to develop a fairer tax code. Although almost all of these property and area-based incentive reliefs have been brought to an end by this stage, unused reliefs were being be carried forward year after year into the future at substantial cost to the Exchequer. The changes which I introduced were informed by an Economic Impact Assessment into this area which was conducted by my Department and the changes received broad cross party support at the time. The details of the measure curtailing property-based accelerated capital allowances are as follows:
- It only applies to the various accelerated property and area-based capital allowances schemes. The ordinary industrial buildings allowance or the wear and tear allowance for plant and machinery are unaffected.
- The measure applies potentially to any industrial building for which accelerated capital allowances have been claimed. It is not restricted to hotels.
- Importantly, it applies only to passive investors in these schemes or to those who are deemed in law not to be actively engaged in the trade. Persons who are actively engaged in their respective trades are not affected by this measure.
- With effect from January 2015, any unused capital allowances which are carried forward beyond the tax life of the building will be lost. This essentially means that if the tax life has ended anytime up to the end of 2014, then the unused allowances are lost in 2015. If, on the other hand, the tax life of a building ends in 2016 or 2017 or later, then it is at the end of that year that the unused allowances are lost.
My intention back in December 2011, when I announced 2015 as the operative date for this measure, was to give adequate notice to those who may potentially be affected to take steps to ensure that the impact on them is minimised. The practical impact of this measure will only begin to be felt in a little over a year’s time, at the earliest. I have no immediate plans at this time to review the policy before it has even come into effect and as far as I am concerned, the measure is proportionate and will be effective in bringing to an end the legacy of these property reliefs.
Drugs Smuggling
Questions (205)
Frank Feighan
Question:205. Deputy Frank Feighan asked the Minister for Finance if he will review existing patrols at ports, land and sea, in the west of Ireland regarding sniffer dog cover for operation and practice in relation to checks and monitoring for drugs; and the changes that are proposed to strengthen the cover in these locations. [49383/13]
View answerWritten answers
I am advised by the Revenue Commissioners that they attach a very high priority to combating the smuggling of controlled drugs and are committed to playing an active role, in conjunction with other relevant agencies, in working against this criminal activity and those responsible for it. Revenue has primary responsibility for the detection, interception and seizure of controlled drugs at points of entry into the State. They maintain an enforcement presence at strategic locations and place particular emphasis on developing an intelligence-based focus at both national and regional level, deploying resources to areas of highest risk. Enforcement strength at particular locations is regularly augmented with additional personnel on a risk-assessment basis, or when particular operations are taking place against illegal activity.
Revenue enforcement officers carry out regular and ongoing monitoring of the coastline, including patrols and physical checks at harbours and piers. This work is supplemented by Revenue’s Customs Drug Watch Programme, which incorporates a coastal reporting mechanism. This allows members of the public, maritime and local communities to report, in confidence, suspect or unusual movements at sea or around the coast through a confidential 24/7 free phone facility.
Revenue deploys two Customs Cutters, the RCC Suirbhéir and the RCC Faire, to patrol the coastline and undertake maritime intelligence gathering duties. These vessels support teams of land-based enforcement officers involved in anti-smuggling duties. The cutters are deployed to cover potential high-risk areas along the coastline.
Revenue has two drug detector dog teams based on the western coast, at Sligo and Shannon, which are deployed over the wider geographical area as necessary. Overall, Revenue has 13 detector dogs at its disposal (8 of which are specifically trained in drugs detection) and these dogs can be deployed to any location as required on a risk-assessment basis. Four additional dog teams are currently being commissioned (two to replace dogs which have recently been retired and two additional teams). This will bring the total number of dog detection teams with drug detection capability to ten.
Customs controls at regional airports are risk-based and are carried out by mobile enforcement personnel. Attendance at these airports is selective and targeted and is based on analysis and evaluation of national and international smuggling trends, traffic frequency, routes and other risk indicators. Attendance can also be as a result of specific intelligence. Flights with origins and destinations with a high-risk rating attract particular interest and the enforcement presence at regional airports is kept under constant review.
Revenue’s Customs service works proactively with An Garda Síochána and the Naval Service in the fight against drug trafficking as part of the Joint Task Force on Drugs Interdiction. There is excellent cooperation between these agencies in the sharing of intelligence and the identification and investigation of the criminals involved in the illegal drugs trade.
Revenue’s work against drugs crime is extensive and multi-faceted and is kept under constant review to ensure that it makes the most effective contribution possible to dealing with this societal problem.
Unfinished Housing Developments
Questions (206)
Willie Penrose
Question:206. Deputy Willie Penrose asked the Minister for Finance the position pertaining to financial bonds issued by the Irish Bank Resolution Corporation in relation to the construction of various housing estates throughout the country; if he will give an assurance that these bonds are fully honoured when called upon by the relevant local authorities to ensure they are in a position to complete such estates and take them in charge; and if he will make a statement on the matter. [49434/13]
View answerWritten answers
I am aware of the problems facing local authorities and in particular in relation to unfinished housing estates as a result of developers not complying with the terms of their planning permissions. Both the Special Liquidators and officials from my Department have recently met with the Department of Environment, Community and Local Government, Local Authorities and the Housing Agency in relation to this issue as a matter of concern. I am advised that development bonds previously entered into by IBRC in favour of the various County Councils or local authorities remain in place. Unfortunately it is likely that any liabilities arising under these arrangements, if called upon, will rank as unsecured claims in the special liquidation.
I am advised that the Department of the Environment, Community and Local Government are currently working with the relevant local authorities to ascertain the actual level of exposure that exists in relation to these bonds and submit a claim to the Special Liquidators in respect of the bonds.
Property Taxation Administration
Questions (207)
Seán Fleming
Question:207. Deputy Sean Fleming asked the Minister for Finance the position under the Finance (Local Property Tax) Act 2012 that requires employers and pension providers to provide a statement of deductions to be given to liable persons at the end of the year, the Minister for Agriculture, Food and the Marine to give a statement of deductions of local property tax to liable persons at the end of the year while the Minister for Social Protection is not obliged to provide a statement of deductions to liable persons from whose benefits the Department deducted the local property tax during the course of the year; the reason persons who pay their local property tax by deduction from their social welfare payment are not treated similarly to other categories of persons who make deductions from Government payments; and if he will make a statement on the matter. [49476/13]
View answerWritten answers
Part 10 of the Finance (Local Property Tax) Act 2012 (as amended) provides for payment of the Local Property Tax (LPT) by deduction at source from salary or occupational pension or from certain payments made by the Departments of Social Protection and Agriculture, Food and the Marine. I am informed by the Revenue Commissioners that where this payment method is chosen, the following provisions outline what a liable person can expect to receive in relation to an end of year statement of the amount of LPT deducted. Section 80 of the Act obliges an employer or pension provider to provide each employee or pension recipient with a statement showing the amount of LPT deducted from payroll during the year within 46 days after the end of that year. I am advised by the Commissioners that this statement of LPT deducted should be included on the annual P60 form which employers and pension providers are already required to provide to their employees/pension recipients under Regulation 27 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001).
In accordance with section 115 of the legislation, the Minister for Agriculture, Food and the Marine is obliged to provide each liable person with a statement showing, in respect of that year, the total amount of LPT deducted from the person’s net scheme payments. According to information supplied by Department of Agriculture Food and the Marine to the Revenue Commissioners, the statement of the amount of LPT deducted during the year will be shown separately on the “Annual Farmer Statement” that issues to farmers after the end of each calendar year.
Section 98 of the Act allows any person who paid their LPT by deduction of LPT from certain payments received from the Department of Social Protection to request a statement of the amount of LPT deducted from his/her Department of Social Protection payments. The Minister for Social Protection is obliged to comply with this request. The Commissioners further advise that this legislative provision was drafted in consultation with the Department of Social Protection.
Credit Unions
Questions (208)
Jack Wall
Question:208. Deputy Jack Wall asked the Minister for Finance when the credit report and the viability report, both dated 10 February 2012, regarding Newbridge Credit Union will be published or available; and if he will make a statement on the matter. [49478/13]
View answerWritten answers
The Central Bank has published on its website, a range of material in relation to the transfer of Newbridge Credit Union to Permanent TSB. This includes a resolution report prepared for the Governor of the Central Bank and an affidavit prepared for a hearing in the High Court. I am advised by the Central Bank of its view that a range of other material remains subject to confidentiality restrictions, which includes the credit report and viability report, and the Central Bank is currently examining whether any of this material can come into the public domain in due course.
Financial Instruments
Questions (209, 210, 211)
Pearse Doherty
Question:209. Deputy Pearse Doherty asked the Minister for Finance in relation to MiFID, if Ireland supports the setting of position limits at EU level or by the trading venue. [49482/13]
View answerPearse Doherty
Question:210. Deputy Pearse Doherty asked the Minister for Finance in relation to MiFID, if Ireland supports the application of position limits to all trading venues and to all over the counter trades. [49483/13]
View answerPearse Doherty
Question:211. Deputy Pearse Doherty asked the Minister for Finance in relation to MiFID, if Ireland supports the application of position limits to each single month and all months combined. [49484/13]
View answerWritten answers
I propose to take Questions Nos. 209 to 211, inclusive, together.
Position limits are a regulatory tool designed to increase the ability of regulators to ensure stable markets and to prevent market abuse, and this is achieved through imposing limits on the extent to which certain financial market participants can take positions in the market in question. Position limits can be applicable to individual transactions or positions built up over time.
Ireland supports the imposition of a position limits regime through MiFID which will support market stability and help prevent market abuse. The position limits regime is set to apply to each class of commodity derivative. It will be supplemented by much greater transparency requirements, a position management regime and product intervention powers for the national competent authorities. We also support these important provisions.
In relation to the decision maker on the application of position limits, Ireland supports a decision making process which provides an important role for all relevant actors, including trading venues, national competent authorities (NCAs) and the European Securities Markets Authority (ESMA). It is important that trading venues co-operate fully with the NCAs and it is important that the NCAs bring to bear their knowledge and experience at ESMA level. ESMA should lead in relation to bringing a strong level of coherence and consistency into the decision making on position limits through setting the parameters in which decisions on position limits are made by the NCAs.
Of course the MiFID negotiations between the Council, the European Parliament and the Commission are still ongoing, with the Council agreement secured via a qualified majority (QMV) of member states. One possible compromise outcome is an enhanced role for ESMA, empowering it to provide an opinion where it considers an NCA to have made a decision inconsistent with the criteria it has set, and this could be supplemented by an added obligation on NCAs to explain the reasoning for its decision on its website in such instances. However, solutions are still under consideration by the co-legislators.
In relation to the detailed rules to be applied with respect to a position limits regime, it is likely that much of this will be left to level 2 legislation, which can provide for a more coherent and calibrated regime, determined at an EU level by ESMA.
In relation to the scope of EU financial services legislation on commodity and related derivative markets, it should be noted that the MiFID file, along with the Market Abuse Regulation (MAR) agreement secured under the Irish Presidency, and the European Market Infrastructure Regulation (EMIR), provide for a much stronger legislative framework for dealing with speculation in commodity derivative markets deemed to be harmful.