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Wednesday, 22 Jan 2014

Written Answers Nos. 50-57

Consultancy Contracts Expenditure

Questions (50)

Michael McGrath

Question:

50. Deputy Michael McGrath asked the Minister for Finance if he will provide a breakdown of all the consultancy costs incurred by his Department and by agencies under his Department, and separately by the Central Bank of Ireland, since coming into office in respect all matters pertaining to the banking sector including, for example, but not exclusively, the PCAR exercise, the special liquidation of the Irish bank Resolution Corporation, the balance sheet asset quality review, the restructuring of individual banks, market transactions; and if he will make a statement on the matter. [3070/14]

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Written answers

The information requested by the Deputy could not be collated in the time available. I will respond directly to the Deputy as soon as possible.

Consultancy Contracts Expenditure

Questions (51)

Michael McGrath

Question:

51. Deputy Michael McGrath asked the Minister for Finance if he will provide a breakdown of all the consultancy costs incurred by his Department and by agencies under his Department and by the Central Bank of Ireland, since coming into office in respect all matters pertaining to the disposal of assets; and if he will make a statement on the matter. [3071/14]

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Written answers

The information requested by the Deputy could not be collated in the time available. I will respond directly to the Deputy as soon as possible.

Fuel Rebate Scheme

Questions (52)

Charlie McConalogue

Question:

52. Deputy Charlie McConalogue asked the Minister for Finance his plans to accommodate small hauliers within the fuel rebate scheme who are unable to buy diesel in bulk and who do not use a fuel card due to cash flow; and if he will make a statement on the matter. [3095/14]

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Written answers

I provided in the Finance Act 2013 for the diesel rebate scheme. This is a repayment scheme to qualifying road haulage and bus operators of a part of the mineral oil tax paid on their purchases of auto-diesel for use in the course of business.

In order to qualify for the repayment, the auto-diesel must be purchased by the qualifying road transport operator; either in bulk (a quantity over 2,000 litres) or by means of a fuel card approved by Revenue for that purpose. Purchases in bulk must be made from a licensed mineral oil trader, and delivered to a premises or place that is under the control of a qualifying road transport operator.

These restrictions as to the means by which the auto-diesel concerned may be purchased are necessary for the management and control of the repayment scheme by Revenue, so that it is not subject to abuse. Bulk purchases from licensed mineral oil traders will be verified by reference to the monthly electronic returns that the oil traders are required to make. Revenue will only approve a fuel card where they are satisfied that the fuel card provider will supply them with the information required by Revenue about purchases of auto-diesel by means of that card.

There are a number of fuel card providers who can supply suitable fuel cards to road transport operators who operate on a smaller scale.

The scheme was the subject of considerable discussion with the haulage sector and I believe the scheme strikes the right balance between facilitating the legitimate haulage sector and preventing fraudulent claims. Revenue will be closely monitoring the scheme and will continue to engage with sectors involved.

Banking Sector Staff

Questions (53)

Maureen O'Sullivan

Question:

53. Deputy Maureen O'Sullivan asked the Minister for Finance the number of bank staff currently availing of lower or favourable mortgage or other loan interest rates; of those staff, the number that have been able to negotiate a write down of their debts; the total number of persons registered by the banks who had their loans, mortgage or otherwise written down; the number of those that are bank employees; what are the above figures broken down by each institution that has been bailed out by the Irish people; and if he will make a statement on the matter. [3106/14]

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Written answers

I can inform the Deputy that the Banks have provided me with the following details regarding staff loans, loan write offs and related matters:

1) Allied Irish Banks

In line with other financial institutions, AIB had a policy of offering favourable loan rates to staff. This policy has been discontinued for standard new lending to AIB staff.

With regards to workout situations in respect of arrears AIB does not differentiate between staff and non-staff in terms of customer treatment. While acknowledging that no two loans are exactly the same, a consistent approach is applied to all customers, including staff members, in line with AIB's current policies and procedures.

All relevant disclosures in relation to AIB's mortgage portfolio are contained on pages 26-32 of its Half Yearly Financial Report 2013 which is available on its website.

2) Bank of Ireland

Bank of Ireland does not comment on specific holdings of products by staff as customers.

Bank of Ireland's annual report for the year to 31 December 2012 gives comprehensive disclosures on its Loan Portfolios (including mortgages) in pages 320 to 345.

Comprehensive disclosures on its Loan Portfolios (including mortgages) may also be found in Pages 113 to 139 of the Group's interim financial statements of the six month period ended 30th June 2013.

As a general comment, Bank of Ireland has noted that the prevalence of preferential rates has greatly decreased in the past ten years, as commercial rates are often lower than staff rates, particularly when applicable Benefit-in-Kind (BIK) is taken into consideration.

3) Permanent TSB

In line with other banks Permanent TSB has offered favourable loan rates to staff. I have been informed by Permanent TSB that a minority of staff (less than 30%) are currently availing of lower or favourable mortgage or other loan rates. Permanent TSB has informed me that no Benefit In Kind has applied on mortgage loans in 2013 given the low interest rate environment.

Permanent TSB provides extensive disclosure on its loan portfolios in its annual and interim accounts. Permanent TSB advises that write-downs are agreed with customers only at the end of a process where other options are not sustainable and customers have fully engaged with the bank. Permanent TSB has informed me that none of its staff have negotiated a write down of their loans.

4) IBRC

The Special Liquidators can confirm there are no employees currently availing of favourable mortgage or other loan interest rates.

The Special Liquidators confirm that all Borrowers can re-finance their borrowings with other lending institutions however there will be no write down of the debt outstanding.

Tax Credits

Questions (54)

Joan Collins

Question:

54. Deputy Joan Collins asked the Minister for Finance the amount of money he expects will save with the reduction in tax credits for single parents; and the number of persons that will be affected by the reduction. [3112/14]

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Written answers

The One-Parent Family Tax Credit has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit will be of the same value, i.e. €1,650, as the existing One-Parent Family Tax Credit and will also carry the same entitlement to the extended standard rate tax band of €36,800 per annum. However, the new credit will be more targeted in that it will, in the first instance, only be available to the principal carer of the child.

When this measure was introduced in Budget 2014 it was estimated by the Revenue Commissioners that up to 15,400 individuals may be affected by the restriction of the restructured credit to the principal carer. However, as a result of an amendment which I brought forward at the Committee Stage of the Finance Bill which allows a primary carer to relinquish the credit such that it can be claimed by a non-primary carer, it is estimated that this number will reduce by 2,000 to 13,400. Ultimately however, the numbers affected will depend on the caring arrangements in place for each case.

Furthermore, at the time of the Budget it was estimated by the Revenue Commissioners that the expected yield from replacing the One-Parent Family Tax Credit with the Single Person Child Carer Tax Credit would be €18 million in 2014 and €25 million in a full year. The amendment introduced at Committee Stage of the Finance Bill had the effect of reducing this estimated yield to €16 million in 2014 and to €22.5 million in a full year.

Tax Credits

Questions (55)

Finian McGrath

Question:

55. Deputy Finian McGrath asked the Minister for Finance the position regarding tax credits in respect of a person (details supplied) in Dublin 5. [3174/14]

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Written answers

As the Deputy is aware, the One-Parent Family Tax Credit has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The Single Person Child Carer Tax Credit is of the same value, i.e. €1,650, as the former One-Parent Family Tax Credit and also carries the same entitlement to the extended standard rate tax band of €36,800 per annum. However, the new credit will be more targeted in that it will, in the first instance, only be available to the principal carer of the child.

The person who receives the child benefit payment is being used as the initial indicator by the Revenue Commissioners to identify the individuals who are most likely to qualify for the new credit.  However, eligibility for the credit will in the first place be determined by who cares for the child for most of the year.

Notwithstanding the above, as a result of an amendment which I brought forward at Committee stage of the Finance Bill, a primary claimant who is entitled to the credit and who does not wish to avail of it can choose to surrender it.  A secondary claimant may then make a claim for the credit, provided that the qualifying child resides with him or her for not less than 100 days in the tax year.  Neither the primary claimant, nor the secondary claimant can be married, in a civil partnership or cohabiting.

Outsourcing of Public Services

Questions (56)

Lucinda Creighton

Question:

56. Deputy Lucinda Creighton asked the Minister for Finance the total amount of outsourcing that has been achieved in his Department since the letter sent by Secretary General of the Department of Public Expenditure and Reform in March 2012; the names of the outsourcing companies that have been involved; the total savings achieved; and if he will make a statement on the matter. [3301/14]

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Written answers

In response to the Deputy's question during 2012 my Department outsourced the provision of Security Services for our Tullamore offices to a private Company. The successful company was Manguard Plus and the estimated savings that can be achieved as a result of outsourcing the function in Tullamore is around €55k.

I have been informed by the Office of the Revenue Commissioner that the use of external third parties for delivery of certain services in key areas such as data capture, debt enforcement and legal services is an integral part of Revenue's business model and this has been the case for many years. Expenditure in excess of €20,000 in relation to these services is published quarterly on Revenue's website. Since March 2012 contracts have been awarded to external service providers in respect of two additional functions as set out below.

Office of the Revenue Commissioners

Supplier

Function

Savings

Abtran

Local Property Tax - Call Centre

N/A (New Function)

Various

Panel of Insolvency Practitioners

N/A (New Function)

Semi-State Bodies Remuneration

Questions (57)

Seán Ó Fearghaíl

Question:

57. Deputy Seán Ó Fearghaíl asked the Minister for Finance the number of semi-State companies under the remit of his Department that paid bonuses to their employees in 2011, 2012 and 2013; if he will identify these semi-State companies; the number of employees and the level of bonuses paid; his views on the situation; and if he will make a statement on the matter. [3698/14]

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Written answers

The information requested by the Deputy is as follows:

Performance related payments made to National Treasury Management Agency (NTMA) staff are published in the NTMA's Annual Report and are set out in the table below.

Year

Total Amount of Performance Related Pay

Number of Staff who received Performance Related Pay

2012

€43,100

6

2011

€62,610

5

The personnel who received performance related payments were key personnel in various business units across the NTMA. No performance related payments were made to members of the NTMA senior management team in either year.

The NTMA employed a total of 500 staff as at the end of 2012.

No decision has yet been made in respect of any performance related payments for 2013.

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