Written Answers Nos. 74-82
74. Deputy Michael McGrath asked the Minister for Finance if he expects the National Asset Management Agency to voluntarily agree with the code of conduct on mortgage arrears in the event that it takes on the residential mortgage loan book of Irish Bank Resolution Corporation; and if he will make a statement on the matter. [52421/13]
View answerIn the event that NAMA ultimately acquires this portfolio, the NAMA Board will determine its strategy at that stage and, in doing so, will be mindful of its legal obligations and of general market norms. I am advised that NAMA is likely to apply best practice in this regard and will seek to ensure that a borrower’s legal position does not deteriorate by virtue of NAMA acquisition of the loan or loans concerned.
75. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the number of participants who received tax relief and the annual cost under the cycle to work scheme in each year from 2007 to date in 2013; and if he will make a statement on the matter. [52422/13]
View answerThe cycle to work scheme came into operation on 1 January 2009. With a view to keeping the scheme simple and reducing administration on the part of employers, there is no notification procedure for employers involved. Accordingly, the Revenue Commissioners do not have statistics on the uptake of the scheme. The scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. The purchase of bicycles and associated safety equipment by employers for employees or directors is subject to the normal Revenue audit procedure with the normal obligations on employers to maintain records (e.g. delivery dockets, invoices, payments details, etc.). The employer is also obliged to keep all salary sacrifice agreements entered into between the employer and employees/directors, together with all signed statements from employees/directors regarding use of the bicycles and safety equipment.
It was estimated at the time of the introduction of the scheme that approximately 7,000 employees would avail of it over the first five-year period of its operation at a cost of €0.4 million in a full year. However anecdotal evidence would suggest that the scheme has been considerably more successful than this. The exemption may apply only once in any five year period in respect of any employee.
76. Deputy Michael McGrath asked the Minister for Finance the number of Irish Bank Resolution Corporation residential mortgages in arrears of less than 90 days, of 90 to 180 days, of 180 to 360 days, or 360 to 720 days and of greater than 720 days; and if he will make a statement on the matter. [52423/13]
View answerI have been advised that the Special Liquidators propose to not provide this information as they consider it to be commercially sensitive financial information which could potentially have a detrimental impact on asset recovery from the impending sale process. Comprehensive disclosures on the residential mortgage book of IBRC (in Special Liquidation) were contained in the Interim Report for the six months ending June 2012 which can be found here; http://www.ibrc.ie/About_us/Financial_information/Latest_interim_report/Interim_Report_2012.pdf
77. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the capital investments made by the State to Bank of Ireland in each year since 2009; the repayments of capital made to date in respect of these investments; and if he will make a statement on the matter. [52424/13]
View answerFollowing my announcement yesterday of the successful sale of the Bank of Ireland Preference shares, please see below the table setting out the up to date net position.
Net Notional Cash Position of the State from Investment in and support provided to BOI.
|
€m |
Notes |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
Total |
|
Cash paid by State |
||||||||
|
Preference Shares |
(a) |
-3,500 |
-3,500 |
|||||
|
Ordinary Shares (net) |
(b) |
-261 |
-261 |
|||||
|
Contingent Capital |
(c) |
-1,000 |
-1,000 |
|||||
|
Sub Total |
-3,500 |
-1,261 |
-4,761 |
|||||
|
Cash received by State |
||||||||
|
Warrants purchased |
(d) |
491 |
491 |
|||||
|
Recapitalisation fees |
30 |
52 |
65 |
147 |
||||
|
2009 Preference Shares Coupons & Redemption |
(e)(f) |
215 |
188 |
2,238 |
2,641 |
|||
|
2011 Continent Capital Instrument Coupons & Redemption |
(e) |
100 |
1,056 |
1,156 |
||||
|
Net Cash Position excluding CIFS/ELG |
-3,470 |
543 |
-981 |
288 |
3,294 |
-326 |
||
|
Eligible Guarantee Fees CIFS & ELG |
(g) |
32 |
139 |
343 |
449 |
328 |
176 |
1,467 |
|
Total |
32 |
-3,331 |
886 |
-532 |
616 |
3470 |
1,141 |
Notes:
(a) €3500 million Preference Shares invested in March 2009. €1663 million Preference Shares converted to Ordinary Shares in the May 2010 Capital Raise.
(b) Excludes a small €4 million incremental participation in the 2011 Recapitalisation by the NPRF non-directed portfolio.
(c) Contingent Capital Investment during 2011 Capital Raise.
(d) Warrants attaching to the 2009 Preference Shares purchased for cash by BOI through private capital raised during the 2010 Capital Raise.
(e) 2009 Preference Share Coupons and 2011 Contingent Capital Coupons are those paid in the period, for 2013 includes those up to settlement date.
(f) Excludes €250 million paid in shares in February 2010 as a consequence of EU imposed “Dividend Stopper”, subsequently lifted.
(g) 2013 Eligible Guarantee Fees are the fees paid up to 31/10/2013.
78. Deputy Michael McGrath asked the Minister for Finance if he will set out on a county basis the number of homes identified by the National Asset Management Agency as suitable for social housing; the number of homes which have been accepted by local authorities and agencies for such purposes; and if he will make a statement on the matter. [52425/13]
View answerThe details sought by the Deputy are set out below. The Deputy will be aware that it is a matter for each local authority to determine, by reference to the relevant housing and planning policy, demand for the properties made available by NAMA for social housing. NAMA has no role in this process but where demand is confirmed and the contract for purchase or lease is entered into, NAMA makes the properties available as soon as is possible.
|
Local Authority |
Numbers Offered by NAMA |
Demand Confirmed by Local Authorities |
|
Carlow Co. Co. |
137 |
82 |
|
Cavan Co. Co. |
49 |
0* |
|
Clare Co. Co. |
169 |
19 |
|
Cork City |
419 |
202 |
|
Cork Co. Co. |
471 |
295 |
|
Donegal Co. Co |
95 |
59 |
|
Drogheda Borough Council |
27 |
27 |
|
Dublin City |
628 |
247 |
|
Dún Laoghaire-Rathdown Co. Co. |
328 |
122 |
|
Fingal Co. Co. |
203 |
46 |
|
Galway City |
117 |
117 |
|
Galway Co. Co. |
84 |
44 |
|
Kerry Co. Co. |
90 |
52 |
|
Kildare Co. Co. |
243 |
97 |
|
Kilkenny Co. Co. |
167 |
96 |
|
Laois Co. Co |
98 |
10 |
|
Leitrim Co. Co. |
35 |
0* |
|
Limerick City |
49 |
47 |
|
Limerick Co. Co. |
79 |
24 |
|
Longford Co. Co |
31 |
11 |
|
Mayo Co. Co |
66 |
58 |
|
Meath Co. Co. |
203 |
38 |
|
Monaghan Co. Co |
35 |
30 |
|
Offaly Co. Co. |
79 |
59 |
|
Roscommon Co. Co. |
91 |
0* |
|
Sligo Co. Co |
46 |
15 |
|
South Dublin Co. Co. |
60 |
42 |
|
Tipperary Co. Co |
37 |
0* |
|
Waterford Co. Co. |
65 |
39 |
|
Westmeath Co. Co |
42 |
29 |
|
Wexford Co. Co |
90 |
74 |
|
Wicklow Co. Co. |
36 |
7 |
|
Total |
4369 |
1988 |
*Demand yet to be determined
79. Deputy Michael McGrath asked the Minister for Finance the current value assigned to the State's investment in Bank of Ireland; and if he will make a statement on the matter. [52426/13]
View answerAt its peak, the State had invested just over €4.7 billion in Bank of Ireland with €1 billion of this investment held by the Minister directly (the Contingent Capital Notes or “Coco’s”) and the remainder held by the Directed Portfolio of the National Pension Reserve Fund. The State has since sold the Coco’s for €1.056 billion recording a profit and as I announced yesterday the State has now concluded a transaction which will see the State recoup its investment in the bank’s Preference Shares.
The State will receive 100% of par value on €537 million of the securities which the bank was entitled to redeem through the issuance of new equity and has secured a price of 104.75% of par on the remaining €1.3 billion of preference shares which have been sold to investors following a book build exercise by a consortium of banks. The total proceeds from this transaction, including accrued interest, will be approximately €2.05 billion. The value of the State’s remaining equity stake in the bank is circa €1.2 billion based off the latest share price of 26c per share. This represents c. 14.0% of the bank after account is taken of new shares that will be issued to investors.
80. Deputy Michael McGrath asked the Minister for Finance the implications for the State's investment in Bank of Ireland of the recently completed asset quality review; and if he will make a statement on the matter. [52427/13]
View answer81. Deputy Michael McGrath asked the Minister for Finance the implications for the State's investment in AIB of the recently completed asset quality review; and if he will make a statement on the matter. [52428/13]
View answerI propose to take Questions Nos. 80 and 81 together.
Following the announcements by both AIB and Bank of Ireland this week that they require no further capital following the completion of the asset quality review there has been a neutral market reaction. As of lunchtime on 4 December 2013 the Bank of Ireland share price is little different from where it was trading last week and the pricing of both banks debt instruments remain little changed. As the Deputy will be aware, I announced yesterday a transaction that will see the State exit its preference shares in Bank of Ireland for proceeds in excess of €2 billion, which included a profit of €62 million for the taxpayer. This leaves the State with just an equity investment in the bank which is worth €1.2 billion based on the current share price.
82. Deputy Michael McGrath asked the Minister for Finance the person coordinating the publication of the State's forthcoming economic update; if the scope of the report has changed substantially from what was originally envisaged; and if he will make a statement on the matter. [52429/13]
View answerI presume the Deputy is referring to the Medium-Term Economic Strategy (MTES), which is due to be published this month. The formulation of the MTES is being jointly led by my Department, in conjunction with the Department of Public Expenditure and Reform, but the Strategy is a whole-of-Government initiative. Consequently, its production is not being coordinated by any one individual, but by a high-level group comprising of officials from the two Departments, the Department of Taoiseach, the Department of Jobs, Enterprise and Innovation and Forfás. In addition, a wider group of officials has been established to coordinate with other Government Departments regarding the sectors of the economy which come under their aegis.
While all such documents naturally evolve during development, the scope of the MTES has not changed substantially from what was originally envisaged. The Strategy will provide a framework to underpin a range of policy efforts in a manner that provides financial market stability and also underpins consumer and business confidence for investment. By providing certainty and confidence that the mistakes of the past will not be repeated, the Strategy will support economic growth and, in so doing, help us to tackle our budgetary and unemployment problems and enable an improvement in the living standards of Irish citizens.
