Written Answers Nos. 44-58
44. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has had any recent discussions with members of the British Government in relation to the need for an inquiry into the murder of Pat Finucane; and if he will make a statement on the matter. [51946/13]
View answerOver 3,500 people died during the Troubles. The suffering of their relatives and friends endures to this day. There is no hierarchy of loss or grief for these families. However, both Governments accepted at Weston Park that certain cases from the past remained a source of grave public concern, particularly those giving rise to serious allegations of collusion by the security forces in each of our jurisdictions. Both Governments therefore committed to undertake a thorough investigation of allegations of collusion in the cases, of the murders of Chief Superintendent Harry Breen and Superintendent Bob Buchanan, Pat Finucane, Lord Justice and Lady Gibson, Robert Hamill, Rosemary Nelson and Billy Wright. The Government's position continues to be to fulfil the commitments we entered into at Weston Park, most specifically in this jurisdiction to carry out an inquiry into the murders of Chief Superintendent Breen and Superintendent Buchanan. In line with this approach, we continue to call on the British Government for an independent public inquiry into the murder of Pat Finucane. This is an approach which has cross-party support in the Houses of the Oireachtas.
It is clear from my extensive consultations during recent visits to Northern Ireland that the past is having a corrosive effect on political life and on community relations. The current All-Party talks under the chairmanship of Richard Haass present an opportunity currently to build positive momentum towards finding the right mechanisms to deal with the past. In the longer term, dealing with the Past will require the ongoing commitment of both Governments, of all the Parties in Ireland, North and South, and also the support of wider society.
45. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has had discussions with the Secretary of State for Northern Ireland or with members of the Northern Ireland Executive regarding the recent comments of the PSNI Chief Constable regarding the increased illegal and violent activities by groups describing themselves as dissidents; and if he will make a statement on the matter. [51947/13]
View answer46. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has had discussions with the Northern Ireland Secretary of State and with the justice Minister in the Northern Ireland Executive regarding the concerns expressed by local communities in Northern Ireland about the increased violent activity by so-called dissidents; and if he will make a statement on the matter. [51960/13]
View answerI propose to take Questions Nos. 45 and 46 together.
I issued a strong statement on behalf of the government following the attempted bomb attack in Belfast's Victoria Street on Sunday 24 November, calling on the public to share any information relevant to the investigation with the PSNI. I know that I speak for all members of the Oireachtas in our repudiation of such incidents. The people behind such violence have neither mandate nor legitimacy and their methods are repugnant to the will of the Irish nation for peace and reconciliation in Ireland.
As co-guarantor of the Good Friday Agreement, the Government is resolved to support the Northern Ireland Executive and the PSNI in overcoming the current security challenges and demonstrating that democratic politics within that framework is the sole basis for peace and reconciliation.
There is close, ongoing co-operation between the Garda Síochána and the PSNI and taking actions against these criminals is a continuing priority for both police services. The Gardaí work seamlessly with their counterparts in Northern Ireland in actively bearing down on these criminal terrorists and on the organised crime gangs to which they are linked. The Garda Commissioner and the PSNI Chief Constable place strong emphasis on the close and high quality co-operation between the two police services and the shared determination to face down the paramilitary threat.
47. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he has had any recent discussions with the British Foreign Secretary or with other members of the British Government regarding Britain's continued membership and participation in the European Union; and if he will make a statement on the matter. [51970/13]
View answerThis issue is raised in high level meetings with our British counterparts on an ongoing basis. Most recently, on 13 November last, I met in London with British Deputy Prime Minister Nick Clegg. Our discussions covered a range of issues including Britain's future in Europe. I outlined to him our strong view that the UK is better off within the European Union and that the Union is stronger by having the UK within it.
48. Deputy Pat Deering asked the Minister for Finance if he will ensure that homeowners who wish to pay their local property tax but have not received their renewal notice, with ID and PIN number, will not face any kind of sanction or prosecution. [51560/13]
View answerI am advised by the Revenue Commissioners that letters were issued in October 2013 to over 980,000 property owners who paid their 2013 LPT by lump sum (i.e. by debit/credit card, cash, cheque/postal order or single debit authority) or by way of regular cash payments. Letters were not sent to property owners who paid their 2013 LPT by deduction at source from salary/occupational pension or from certain Government payments or direct debit, or to those who opted to defer their full LPT liability or those who claimed an exemption, as all of these options will continue to apply for 2014. No action is required to be taken by these property owners, unless they wish to change to a different payment method for 2014.
The Commissioners have confirmed that a small number of property owners who had raised queries with Revenue or who had unresolved issues on their property records were not included in the bulk issue of letters to property owners in October. In these cases, a letter will issue to the property owner when the relevant issue has been resolved. These property owners can be assured that they will be afforded adequate time to confirm their payment method for 2014 and this will be outlined in the letter they receive from Revenue.
I am also advised that a property owner can contact the LPT helpline at 1890 200 255 where, once their identity is verified, they will be provided with their PIN code and Property Id over the telephone. This should then allow them to file their LPT Return online.
49. Deputy Willie O'Dea asked the Minister for Finance if he will consider deferring the next phase of the implementation of carbon tax, pending an evaluation of the net benefit of same to the State to date, and taking into consideration the effect of the growth of the black economy on regulated fuel businesses; when will all public suppliers of fuel to the domestic market come under a proper regulatory system; and if he will make a statement on the matter. [51615/13]
View answerSolid fuel carbon tax will be charged on all solid fuels supplied in the State, regardless of whether the fuel products are Irish made or imported. Solid fuel is defined under section 77 of the Finance Act 2010, as amended and means coal or peat. Coal is further defined to include coal and lignite, solid fuel manufactured from coal and lignite, and any other energy product within the meaning of Article 2.1 of Council Directive 2003/96/EC of 27 October 2003 in solid form. Peat means peat falling within CN Code 2703 of the Combined Nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987, as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 and includes any solid fuel manufactured from peat.
I am advised by the Revenue Commissioners that the Air Pollution Act, 1987 (Marketing, Sale and Distribution of Fuels)(Amendment) Regulations 2011 (S.I. No. 270 of 2011), made by the Minister for the Environment, Heritage and Local Government, specifies the standards for coal placed on the market and extends the regulatory framework in relation to the distribution and sale of coal in the State. Under the Regulations, all coal suppliers are obliged to register with the Environmental Protection Agency and comply with sulphur content and packaging standards. In particular, the sulphur content of coal that may be sold in the State, which is not more than 0.7% sulphur by weight, is lower than that in Northern Ireland and therefore coal supplied to Northern Ireland standards for sale on that market may not be sold in the State. Compliance with the Regulations will be enforced by the Local Authorities. The application of the solid fuel carbon tax on coal is heavily dependant on this regulatory regime. Suppliers who produce and supply solid fuels in contravention of these regulations are subject to investigation and prosecution by local authorities and other State Agencies charged with enforcing the regulations and preventing such supply.
The Revenue Commissioners, who are responsible for the collection of carbon tax on solid fuels, also advise me that on commencement of the carbon tax provisions under the Finance Act 2010, any Northern Ireland-based wholesaler of solid fuels selling into the market in Ireland will be obliged to register as a supplier and comply with the same regulatory requirements as wholesalers based in the State. Such suppliers will be obliged to make returns on solid fuels supplied in the State in the accounting period concerned and pay the amount of carbon tax due in respect of that supply.
Therefore it is not my intention to defer the second phase of the carbon tax which is due for implementation in May 2014.
50. Deputy Richard Boyd Barrett asked the Minister for Finance if he will provide a full report on recent meetings of NewERA. [51706/13]
View answerNewERA regularly meets with the commercial semi-state companies within its remit, Government departments, stakeholders, other commercial parties and advisors in carrying out its functions, including advising on the disposal or restructuring of State assets. Due to the commercial sensitivities and confidential nature of the matters under discussion it would not be appropriate for me to provide further details on these meetings.
51. Deputy Éamon Ó Cuív asked the Minister for Finance the legislative changes in place, or proposed, that will change the treatment for capital gains tax for joint tenants as opposed to tenants in common; the nature of this change; if there is, when this change will take place; and if he will make a statement on the matter. [51294/13]
View answerWhere property is owned under a joint tenancy each joint-tenant has an equal undivided share in the property, which passes automatically on the death of one joint-tenant to the surviving joint- tenant(s). Where property is owned under a tenancy-in-common, each tenant-in-common owns a proportionate share in the property. On the death of a tenant-in-common, his or her share in the property does not pass automatically to any other tenant-in-common but rather forms part of the deceased's estate.
Capital gains tax legislation contains no specific provisions in relation to tenants-in-common or joint-tenants. The legislation follows the general law in relation to the ownership of property and applies capital gains tax, where a chargeable gain arises on a disposal, on each tenant-in-common or joint-tenant according to the share of each one in the property.
A joint-tenancy can be severed and replaced by an arrangement in which the former joint-tenants become tenants-in-common. Where a number of properties are held under tenancies-in-common, these can be partitioned and replaced by an arrangement in which each of the former tenants-in-common becomes the full owner of some of the properties. Each of the parties concerned in such arrangements is disposing of a lesser interest in part of the properties concerned and is acquiring a full interest in a number of the properties. The normal capital gains tax rules in relation to part-disposals apply in this situation.
Where the owner of property transfers it to joint-tenants there is a disposal of the whole property to the joint tenants collectively even where the original owner becomes a joint-tenant following the transfer. Any chargeable gain arising on such transfer is subject to capital gains tax in the normal way.
The treatment applied to the disponer of, or of an interest in, property is the same whether a tenant-in-common or a joint-tenant. Whatever interest is disposed of is subject to capital gains tax, if a chargeable gain arises on the disposal, and there are no proposals to change this.
52. Deputy Sandra McLellan asked the Minister for Finance if he will provide members with a dedicated line to contact the Revenue Commissioners to make representations on behalf of their constituents; and if he will make a statement on the matter. [51298/13]
View answerI am advised by the Revenue Commissioners that they already have a dedicated phone service in place for Oireachtas members (01 – 674 8102) who have any tax related queries. In addition, the Revenue Commissioners operate a large number of contact channels, including low cost phone numbers (1890) for some of their most popular services, as well as numerous electronic mailboxes for those who wish to communicate by e-mail. While these services are provided for Revenue customers, they are of course also available for use by Oireachtas members. All contact details can be found on the Revenue website at http://www.revenue.ie/en/contact/index.html.
53. Deputy Brian Stanley asked the Minister for Finance if he will consider introducing an amendment to the VAT regulations to abolish VAT on defibrillators, their accessories and associated training; and if he will make a statement on the matter. [51308/13]
View answerThe VAT rating of goods and services is constrained by the requirements of EU VAT law with which Irish VAT law must comply. Defibrillators, other than implantable defibrillators, are liable to VAT at the standard rate of 23%. Parts or accessories and training are also liable to VAT at the standard rate. However, training provided in a work setting, for example for the purposes of health and safety in a company or for medical persons who require such training for their profession, would qualify as exempt vocational training for VAT purposes. There is no provision in the EU VAT Directive that would make it possible to exempt from VAT or apply a zero rate to the supply of defibrillators. Under the VAT (Refund of Tax) (No.15) Order, 1981 it is possible for individuals to obtain repayment of VAT expended on certain goods and appliances which assist persons with a disability to overcome that disability. In this context, a defibrillator purchased by or on behalf of an individual may qualify for a VAT refund. However, a defibrillator purchased for general use by a sports body or charity would not qualify for such a refund.
54. Deputy Pearse Doherty asked the Minister for Finance if he has confidence in the Governor of the Central Bank of Ireland's ability to ensure that Irish-regulated banks are adequately providing for loan losses in their books of account. [51325/13]
View answer55. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to statements made by the former chairman of the International Accounting Standards Board (details supplied), who criticised the Governor of the Central Bank at a British House of Commons parliamentary commission on banking standards in January 2013; and if he will make a statement on the matter. [51326/13]
View answerI propose to take Questions Nos. 54 and 55 together.
Ensuring that Irish regulated banks are adequately providing for loan losses in their books of account is the responsibility of the Governor of the Central Bank and I have full confidence in his ability to fulfil that role.
As regards the comments attributed to the debate in the House of Commons Parliamentary Commission, and referred to by the Deputy, I would like to outline the position as it applies in Ireland.
In the first instance, the individual Board of each Bank is responsible for ensuring that there is adequate provisioning in their respective institution. This process is carried out in conjunction with the individual bank auditors, and the Central Bank, in its capacity as regulator, has an oversight function in relation to this process. AIB, Bank of Ireland and PTSB have been subject to a PCAR in 2011 and the recently completed Asset Quality Review which has again reviewed the adequacy of the bank provisions.
The Central Bank of Ireland continually monitors the financial position of the Covered Banks including through reviews such as PCAR and the wider Financial Measures Programme. The banks will also be subject to the ECB’s Comprehensive Assessment which is ongoing and will conclude in late 2014. The Central Bank has also produced a paper which sets out the Central Bank of Ireland's best practice guidelines regarding the policies, procedures and disclosures which the State supported covered institutions should adopt for loans and receivables financial assets that are subject to impairment review in accordance with the requirements of International Accounting Standard 39, Financial Instruments: Recognition and Measurement ("IAS 39").
56. Deputy Pearse Doherty asked the Minister for Finance his views on the recent announcement by KBC Ireland that it expects to provide up to €775 million for loan losses in the fourth quarter of 2013, bringing its total 2013 provision for loan losses to €1.1 billion compared with €525m in 2010, €510 million in 2011 and €547 million in 2012. [51327/13]
View answerKBC released their third quarter financial performance statement and report on 14 November. In this report, KBC stated that, in light of a paper by the European Banking Association on forbearance and non-performing loans as well as the upcoming asset quality review in 2014, they are reassessing their Irish loan book and expect to add additional provisions due to the reclassification of €2 billion worth of restructured mortgage loans. They are also increasing provisions in the corporate loan book because of the slow recovery of the SME sector in Ireland. The expected impairment charge in Ireland is now up to 775 million euros in the fourth quarter of this year.
Their guidance for loan loss provisions in Ireland is 150 to 200 million euros for 2014 and 50 to 100 million euros for each of 2015 and 2016.
I think that it is important to bear in mind that the increased expected impairment charge is as a result of a reassessment of the KBC loan book and therefore the total for 2013 is not directly comparable to previous years. Obviously such a large impairment charge is not welcome but it is necessary that the bank recognises and provides for likely losses.
57. Deputy Pearse Doherty asked the Minister for Finance the total funds available to the Central Bank of Ireland in its deposit guarantee scheme to compensate potential claims by depositors of failed banks. [51330/13]
View answerThe Financial Services (Deposit Guarantee Scheme) Act 2009 provides for the operation of the Deposit Protection Account (DPA). Credit Institutions are required to maintain a balance in the DPA equivalent to 0.2% of their total deposits (subject to a minimum of €50,000 for each bank or building society). The Central Bank of Ireland is responsible for the operation of the Deposit Protection (Guarantee) Scheme (DGS). I am advised by the Central Bank that the current balance in the DPA is €369 million.In the event of a credit institution being unable to repay deposits, the Central Bank is authorized to make compensation payments to eligible depositors to a maximum of €100,000 per eligible depositor per institution. The cost of compensation payments is charged against the balance in the DPA.
In the event that the cost of compensation exceeds the balances in the DPA, the 2009 Act provides for the Central Bank to be reimbursed from the Central Fund within 3 months, subject to the approval of the Minister for Finance. Subsequently, credit institutions would be required to replenish the DPA and to repay the Minister for amounts advanced to cover the immediate cost of compensation. The Minister is authorized to specify the period for repayments and the interest rate chargeable.
58. Deputy Lucinda Creighton asked the Minister for Finance if he will detail when the capital requirements directive IV will be transposed into Irish law; if he will detail if in the transposition of this directive into Irish law there is scope for credit unions not to be reclassified as non-banking financial institutions under the directive or the capital requirements regulation; his views that credit unions here should have their deposits classified as retail deposits in banks as has always been the case; and if he will make a statement on the matter. [51336/13]
View answerThe CRD IV legislative package is made up of the Capital Requirements Directive - 2013/36/EU and the Capital Requirements Regulation 575/2013. The Capital Requirements Directive will be transposed into Irish law by 31 December 2013. The Capital Requirements Regulation is directly effective in Irish law and will come into force on 1 January 2014. CRD IV is the EU implementation of the agreements reached by the Basel Committee on Banking Supervision (i.e. the Basel III requirements), which have been endorsed by the G20 leaders. Credit unions are excluded from the scope of the CRD IV legislation in accordance with Article 2(5)(8) of Directive 2013/36/EU.
Credit union deposits held at credit institutions do not meet the definition of retail deposits as outlined in Article 411 (2) of Regulation 575/20131. As the Directive and Regulation were agreed and published in the Official Journal of the EU earlier this year, the classification of credit union deposits in this regulation cannot be reviewed at this stage.
Footnote:
1. Article 411 (2) of Regulation 575/2013 - (2) 'retail deposit' means a liability to a natural person or to an SME, where the natural person or the SME would qualify for the retail exposure class under the Standardised or IRB approaches for credit risk, or a liability to a company which is eligible for the treatment set out in Article 153(4) and where the aggregate deposits by all such enterprises on a group basis do not exceed EUR 1 million.
