Written Answers Nos. 75-90
75. Deputy Lucinda Creighton asked the Tánaiste and Minister for Foreign Affairs and Trade the total number of Irish quasi-autonomous NGOs that his Department either created or fall under his Department's responsibility and were in existence when he became Minister and continue to exist to date; and if he will make a statement on the matter. [55145/13]
View answerThere are no organisations of the type referred to by the Deputy under the aegis of my Department.
76. Deputy Lucinda Creighton asked the Tánaiste and Minister for Foreign Affairs and Trade the total number of chairpersons of State boards, agencies and regulators that fall under his Department’s responsibility that were chairpersons when he became Minister and continue to be chairpersons; and if he will make a statement on the matter. [55161/13]
View answerThere are no State boards, agencies or regulators operating under the aegis of my Department.
77. Deputy Terence Flanagan asked the Minister for Finance if householders face paying more in premiums as a result of what happened at RSA Insurance; and if he will make a statement on the matter. [55016/13]
View answerAt the outset, I would point out that the calculation of annual premium rates is a commercial decision for the insurance company in question. Neither I, as Minister for Finance, nor the Central Bank of Ireland, can require a company to change its rates or prohibit a company from doing so. The decision to provide any specific form of insurance cover and the price at which it is offered is based on the assessment an insurer will make of the risks involved. This risk assessment process which insurance companies apply is essential if a company is to be able to provide its services over the longer term and continue to remain solvent.
I am aware of continuing strong competition within the insurance industry which should have an influence on limiting price increases and I have informed the industry that it must be a priority for them to ensure that insurance cover is provided as competitively as possible consistent with long term commercial sustainability and viability. There is a delicate balance to be struck between ensuring the long-term sustainability of the insurance industry and at the same time making sure that the consumer obtains good value for money.
Consumer issues are covered by the Central Bank's Consumer Protection Code which amongst other things sets out a series of general principles about how financial service firms (including all insurance companies) should interact with their customers. The Code, however, does not prohibit or restrict an insurance company from increasing its annual premium rates.
In relation to RSA, the RSA Group has now injected a total of €260m capital into RSA Insurance Ireland Limited (RSAII) in November and December. This capital support ensures that RSAII’s solvency margin remains in excess of 200%. The Central Bank, as Regulator, remains in close and regular dialogue with RSAII.
78. Deputy Michelle Mulherin asked the Minister for Finance the staff numbers at the National Asset Management Agency for 2010, 2011, 2012 and to date in 2013; and if he will make a statement on the matter. [54780/13]
View answer79. Deputy Michelle Mulherin asked the Minister for Finance the number of staff at the National Asset Management Agency that were paid in excess of €100,000 for 2010, 2011, 2012 and to date 2013; and if he will make a statement on the matter. [54781/13]
View answerI propose to take Questions Nos. 78 and 79 together.
All NAMA staff are employees of the NTMA and under section 42 of the National Asset Management Agency Act 2009, the NTMA assigns staff to NAMA. Staff numbers assigned to NAMA are as follows:
|
End 2010 |
100 |
|
End 2011 |
193 |
|
End 2012 |
224 |
|
End November 2013 |
315 |
Information on NTMA salary bands is published in the NTMA Annual Report and Accounts 2012 (as set out in a table). The report is available on the NTMA website (www.ntma.ie).
I am advised that 87 staff assigned to NAMA had salaries of over €100,000 at end 2011 while 51 staff assigned to NAMA had salaries of over €100,000 at end 2010.
NTMA Salaries by Salary Band at End 2012
|
- |
NTMA (ex NAMA) |
NAMA |
Total |
|
Up to €50,000 |
92 |
25 |
117 |
|
€50,001 to €75,000 |
71 |
49 |
120 |
|
€75,001 to €100,000 |
52 |
58 |
110 |
|
€100,001 to €125,000 |
21 |
39 |
60 |
|
€125,001 to €150,000 |
14 |
31 |
45 |
|
€150,001 to €175,000 |
11 |
9 |
20 |
|
€175,001 to €200,000 |
4 |
9 |
13 |
|
€200,001 to €225,000 |
2 |
0 |
2 |
|
€225,001 to €250,000 |
1 |
1 |
2 |
|
€250,001 to €275,000 |
3 |
1 |
4 |
|
€275,001 to €300,000 |
2 |
0 |
2 |
|
€300,001 to €325,000 |
0 |
0 |
0 |
|
€325,001 to €350,000 |
2 |
0 |
2 |
|
€350,001 to €375,000 |
0 |
2 |
2 |
|
€375,001 to €400,000 |
0 |
0 |
0 |
|
€400,001 to €425,000 |
1 |
0 |
1 |
|
€425,001 to €450,000 |
0 |
0 |
0 |
|
Total |
276 |
224 |
500 |
Notes:
1. The public service pension deduction is applied to NTMA employees.
2. In December 2011 the Minister for Finance requested NTMA employees whose salaries exceeded €200,000 to waive 15 per cent of salary or such amount of salary as exceeds €200,000 if application of the full 15 per cent reduction would bring their salary to below €200,000. Reductions in respect of employees waiving such amounts are reflected in the above table.
80. Deputy Michelle Mulherin asked the Minister for Finance how much has been paid by the National Asset Management Agency to consultants and advisers for 2010, 2011, 2012 and to date in 2013; and if he will make a statement on the matter. [54782/13]
View answerFees paid by NAMA since its inception in 2009 to 30 June 2013 to consultants and advisers are set out in a table. Expenditure includes significant once off costs incurred in connection with the establishment of NAMA, due diligence connected with the acquisition of loans from the Participating Institutions and the initial review of debtor business plans.
|
- |
- |
H1 2013 |
2012 |
2011 |
2010 |
|
- |
- |
€'000 |
€'000 |
€'000 |
€'000 |
|
Due Diligence Costs |
- |
- |
- |
- |
- |
|
- |
Legal Due Diligence |
- |
85 |
7,053 |
7,062 |
|
- |
Loan Valuation Costs |
- |
2,187 |
20,900 |
9,295 |
|
- |
Property Due Diligence |
- |
513 |
7,607 |
4,419 |
|
- |
Audit Coordinator |
- |
1,301 |
8,945 |
8,829 |
|
- |
Total |
- |
4,086 |
44,505 |
29,605 |
|
Portfolio Management fees |
- |
2,410 |
6,882 |
15,992 |
5,087 |
|
Legal Fees |
- |
612 |
4,634 |
9,478 |
3,311 |
|
Finance and Technology Costs |
- |
1,269 |
3,022 |
2,266 |
5,719 |
|
Internal Audit Fees |
- |
505 |
1,023 |
927 |
703 |
|
Other Internal Audit Fees |
- |
- |
288 |
- |
- |
|
- |
- |
4,796 |
19,935 |
73,168 |
44,425 |
81. Deputy Michelle Mulherin asked the Minister for Finance the intentions of the liquidator of Irish Bank Resolution Corporation regarding performing loans, that is, sale at discount or move to other banks; and if he will make a statement on the matter. [54783/13]
View answer95. Deputy Terence Flanagan asked the Minister for Finance the position regarding the sale of the Anglo Irish Bank loan bank book and the Irish Bank Resolution Corporate loan book; and if he will make a statement on the matter. [54952/13]
View answerI propose to take Questions Nos. 81 and 95 together.
The Special Liquidators are continuing the orderly and efficient wind-down of IBRC in accordance with the provisions of the IBRC Act 2013 and instructions that have been provided to the Special Liquidators by me under the IBRC Act 2013.
I am advised that the Special Liquidators will comply with the timelines, namely that the valuation of IBRC's loan assets be completed by 30 November 2013 and that the sale of IBRC assets be completed by 31 December 2013 or as soon as practicable thereafter.
The Special Liquidators have advised me that the valuation of the IBRC loan assets was completed by 30 November 2013. The Special Liquidators have been tasked with obtaining an independent valuation of the loan assets of IBRC. The Special liquidators have appointed independent professional advisors who have employed standard valuation methodologies appropriate to each class of asset of IBRC to determine a valuation price. In arriving at the valuation 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. This process is the same for both performing and non-performing loans.
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 have been obtained. Should a bid not be received that is in excess of the independent valuation obtained, the loan asset will be acquired by NAMA.
The sales process plan and timeline has been developed following professional advice and in light of requirements of a robust and credible sales process. The Special Liquidators have also corresponded with all IBRC borrowers providing them with an opportunity to make written representations on the method of disposal of their loans and the criteria for determining who may bid for loan assets. Consideration was given to Borrower representations and the Special Liquidators have responded to these Borrower representations.
The IBRC loan books have been divided into portfolios and subsequently subdivided into tranches depending on the professional advice obtained for ensuring that the maximum value is obtained for the sale of the Loan Assets. There is no difference in the treatment of performing loans and non-performing loans. All loans are being valued and then sold.
Last week we witnessed the successful conclusion of the bidding phase for the first portfolio of assets brought to the market by the Special Liquidators. Binding bids for the Evergreen portfolio consisting primarily of Irish corporate loans with a par value of c.€2.5bn were received on Friday 6th December and the Special Liquidators expect that c.84% of the portfolio (by par value) will be sold to third parties at prices in excess of the independent valuations.
The sales processes for the remaining portfolios in IBRC are on-going and are expected to be concluded in early 2014.
82. Deputy Róisín Shortall asked the Minister for Finance the reason a person (details supplied) in Dublin 9 did not receive a local property tax letter; and if he will arrange for the Revenue Commissioners to contact this person regarding his or her LPT liability. [54829/13]
View answerI am advised by Revenue that it recently wrote to certain tranches of property owners in regard to their 2014 Local Property Tax (LPT) obligations. The persons contacted were property owners who filed their 2013 Local Property Tax (LPT) Returns and paid their liabilities by lump sum or by way of regular cash payments. Revenue did not write to certain categories of property owners including those on phased payment arrangements and those who had not filed LPT Returns for 2013. In the case raised by the Deputy, I am advised that the person in question made a payment of €200 but did not file an LPT Return for 2013.
The son of the person in question subsequently contacted Revenue on 20 November 2013 and received assistance in filing the 2013 Return. During the filing process he was unsure whether the €200 payment was for arrears of Household Charge or LPT, and advised that he needed to clarify matters further with the person and would revert. He also requested Revenue to issue a payment notification to the person in respect of 2014 so that he could bring all issues up to date. The payment notification issued on 13 December 2013.
Revenue was of the opinion that the person’s son was clarifying the outstanding issues and expected he would revert as soon as possible. However, in light of the Deputy’s representation, Revenue will make direct contact with the person in question in the coming days to bring matters to a conclusion.
83. Deputy Thomas P. Broughan asked the Minister for Finance the additional potential yield to the Exchequer if the domicile levy was increased to €350,000. [54841/13]
View answerI am informed by the Revenue Commissioners that, based on the numbers of taxpayers paying the Domicile Levy since its introduction, the full year yield on a straightforward arithmetic basis from an increase in the Domicile Levy from €200,000 to €350,000 could be in the region of €2.3 million. Various factors, including fluctuations in asset values and income, could affect the numbers liable to pay the levy in future years. It must be borne in mind that where a person has paid Irish income tax for a year, that person is entitled to credit for income tax paid in calculating the amount of domicile levy due for that year. Accordingly, the yield indicated above must be treated with caution.
84. Deputy Eoghan Murphy asked the Minister for Finance if it is his intention to request the Revenue Commissioners to issue receipts to those paying the property tax in 2013 so as to ensure complete records for the purposes of future house sales and so on and that receipts are being issued for 2014. [54869/13]
View answerI am advised by Revenue that receipts are available in all circumstances where a person pays Local Property Tax (LPT) via its online service. However, since July 2011 paper receipts are no longer issued in respect of tax payments. This decision was taken on the basis that the vast majority of taxpayers conduct business with Revenue via its online service. The online service facilitates direct access to payment information and therefore customers have no need for a paper receipt. The change has resulted in significant cost savings in terms of postage, stationery and staff resources. While customers who pay and file using the paper LPT Return do not receive manual receipts, they have evidence of payment through their own financial institution records. This arrangement now also applies to LPT, and customers who file online receive an electronic acknowledgement and have ongoing access to their return and payment details. The only exception in regard to paper receipts is where a person pays LPT online through the telephone Helpline 1890 200 255. In such circumstances a paper acknowledgement issues within two weeks.
I am also advised that where customers pay via third party payment services providers (An Post, Omnivend and Payzone) they receive receipts for each payment made.
On the provision of LPT payment clearance in the context of property sales, I am informed that Revenue provides a ‘look up’ facility to vendors or their representatives via online access to the relevant LPT return and payment details.
This service, which is fully secure, provides solicitors/agents with instant access to the LPT data of clients. The security aspect is controlled through the use of various access codes, which are provided to the solicitor/agent by Revenue (through the online system) or by the property owner. Alternatively, the property owner can access his/her own LPT payment and return history and print copies of the details for the solicitor/agent. Where the access codes are not readily available for any reason the property owner can contact the LPT Branch at 1890 200 255.
I commend Revenue for providing this secure digital facility to enable the conveyancing process to proceed seamlessly. When combined with Revenue’s eStamping system, this provides a modern and secure digital platform to facilitate timely compliance with tax obligations arising as a result of the transfer of residential properties. I strongly support Revenue’s approach to eservices which is fully in accordance with the Government’s digital strategy.
Finally I am advised that comprehensive guidelines on LPT obligations in the context of property sales or transfers are available on the Revenue website. Instructions for solicitors/agents on how to access the ‘look up’ service are also available on the website at: http://www.revenue.ie/en/tax/lpt/sale-transfer-property.html.
85. Deputy Kevin Humphreys asked the Minister for Finance if he will direct the majority State-owned banks of AIB and Permanent TSB to publish the results of the Central Bank balance sheet assessments; the amount it was recommended that they make provisions for without delay; and if he will make a statement on the matter. [54881/13]
View answer86. Deputy Kevin Humphreys asked the Minister for Finance the reason the majority State-owned banks of AIB and Permanent TSB have not published the results of the Central Bank balance sheet assessments; and if he will make a statement on the matter. [54882/13]
View answer87. Deputy Kevin Humphreys asked the Minister for Finance the amount the Central Bank estimated was the required amount of extra provisioning that AIB had to make following the balance sheet assessment; if he will provide a breakdown of where in the loan book these new loan losses arose; and if he will make a statement on the matter. [54883/13]
View answer88. Deputy Kevin Humphreys asked the Minister for Finance the amount the Central Bank estimated was the required amount of extra provisioning that Permanent TSB had to make following the balance sheet assessment; if he will provide a breakdown of where in the loan book these new loan losses arose; and if he will make a statement on the matter. [54884/13]
View answerI propose to take Questions Nos. 85 to 88, inclusive, together.
As I stated in response to questions 52473/13 and 52474/13 I have seen the results of the Balance Sheet Assessment ("BSA") as they were a commitment under our Funding Programme and, as with all other such commitments, my Department communicated them to the Troika by the appointed deadline. The results are very technical in nature and I am under a legal obligation to keep the details confidential.
Since the BSA is seen as part of the ECB’s Comprehensive Assessment ("the Assessment"), with the findings being included in the Assessment, the results of the BSA are not being published separately. The interpretation of the results is a matter for the Central Bank, but I am pleased that the Governor has informed me that there will not be an additional regulatory capital requirement in the banks as a result of this process.
It is a matter for the banks to decide regarding the publication of their individual results and I would refer the Deputy to the statements made by the individual banks. I am advised by AIB and Permanent TSB that they will consider the findings of the BSA in the preparation of their year-end December 2013 financial statements.
89. Deputy Kevin Humphreys asked the Minister for Finance the investment of the Irish State in Bank of Ireland contingent capital bonds sourced from the National Pensions Reserve Fund; the amount of same; if this was part of the directed investment portfolio; and if he will make a statement on the matter. [54885/13]
View answer90. Deputy Kevin Humphreys asked the Minister for Finance if the proceeds from the sale of State-owned Bank of Ireland contingent capital bonds were returned to the National Pensions Reserve Fund; and if not, will it be; and if he will make a statement on the matter. [54886/13]
View answerI propose to take Questions Nos. 89 and 90 together.
In early January, the State was successful in disposing of its entire €1 billion holding of Contingent Capital Notes (CCN’s) in Bank of Ireland. The State’s investment in these instruments dated back to the 2011 PCAR exercise, but unlike the rest of the State’s investment in the bank, they were not part of the NPRF directed investment portfolio, as the Minister funded this investment directly.
The transaction settled on Tuesday the 15th of January and the State was paid proceeds of just over €1,056 million, comprising principal of €1,000 million, interest accrued of over €46 million covering the period 29th July 2012 to date of sale, and a profit of €10 million. As we used the proceeds of this sale to reduce the State’s indebtedness, it reduced the critically important debt/GDP ratio by 0.6 per cent.
