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Thursday, 6 Mar 2014

Written Answers Nos. 42 - 55

Overseas Development Aid Expenditure

Questions (42, 43)

Brendan Smith

Question:

42. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the total funding allocation and the likely percentage of GNP he plans for overseas development aid for 2014 to 2016, inclusive, in view of the commitment in the programme for Government to provide 0.7% of GNP by 2015; and if he will make a statement on the matter. [11449/14]

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Terence Flanagan

Question:

43. Deputy Terence Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade his views on foreign aid targets for 2014 to 2016, inclusive; and if he will make a statement on the matter. [11460/14]

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Written answers

I propose to take Questions Nos. 42 and 43 together.

The Government is strongly committed to Ireland’s overseas aid programme and to its place at the heart of Irish foreign policy. This commitment was made clear in our Programme for Government and underscored last year in our new policy for international development - One World One Future - which set out our vision for a sustainable and just world in which people are empowered to overcome poverty and hunger and to fully realise their rights and potential.

Over the past three years the Government has managed to largely stabilise allocations to Official Development Assistance (ODA). This has been a major achievement, particularly when viewed in the context of the challenging economic and budgetary constraints we have faced. For 2014, the Government has allocated almost €600 million to ODA. This is a significant level of funding by any standard, and a further clear indication of our strong commitment to the programme. On current estimates, we expect the 2014 allocation to equate to some 0.43 % of GNP.

As with all major exchequer spending programmes, the annual budget for ODA is ultimately a matter for the Government and is announced by the Ministers for Finance and Public Expenditure and Reform on budget day. Our new policy clearly states that the Government remains committed to moving towards the UN target for ODA of 0.7% of GNP as soon as economic circumstances permit.

Question No. 44 answered with Question No. 40.

General Government Debt

Questions (45)

Pearse Doherty

Question:

45. Deputy Pearse Doherty asked the Minister for Finance if he will show in figures the effect on the general Government deficit if EUROSTAT rules that the €240 million declared as an equity investment in the Estimates for Irish Water is not in fact an equity investment and that it must be factored into the general Government deficit. [11205/14]

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State Bodies

Questions (46)

Pearse Doherty

Question:

46. Deputy Pearse Doherty asked the Minister for Finance the number of equity investments he has made in State-owned companies since March 2011; and the number he plans to make in 2014. [11206/14]

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Written answers

Under the Ministers and Secretaries (Amendment) Act 2011, ownership of State companies moved to the Minister of Public Expenditure and Reform. Policy on investment in State-owned companies is therefore a matter for the Minister for Public Expenditure and Reform and the relevant Minister. I would point out that the Budget arithmetic includes provision for a €240 million equity investment in Irish Water in 2014, to be paid from the Central Fund. The investment will be made on foot of a request from the Minister for Environment, Community and Local Government. I might also mention that the State invested a net €16.5 billion into the banks in 2011. This comprised investment by the Exchequer in contingent capital notes of €3.0 billion and a net equity investment by the Exchequer of €3.5 billion which was in addition to an equity investment of €10.0 billion made by the NPRF.

NAMA Operations

Questions (47)

Michael McGrath

Question:

47. Deputy Michael McGrath asked the Minister for Finance the rates agreed by the National Asset Management Agency as part of the tender process for insolvency services; and if he will make a statement on the matter. [11239/14]

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Written answers

I am advised that this information cannot be released because it is of a commercially sensitive nature and was provided to NAMA on the understanding that it would be treated as confidential as part of the tender process.  I am assured that a key criterion in the selection of service providers by NAMA is the extent to which they can provide value for money for the taxpayer.

Property Tax Application

Questions (48)

Kevin Humphreys

Question:

48. Deputy Kevin Humphreys asked the Minister for Finance if residential units owned by a REIT are subject to the local property tax; and if he will make a statement on the matter. [11240/14]

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Written answers

In accordance with the Finance (Local Property Tax) Act 2012 (as amended), liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date, which was 1 May 2013 for 2013 and for subsequent years 1 November in the preceding year. A liable person includes an entity such as a Real Estate Investment Trust (REIT). As no specific exemption from the charge to LPT was provided for REITs in the Finance (No. 2) Act 2013 or in the LPT legislation, residential properties owned by a REIT are subject to LPT.

Tax Exemptions

Questions (49)

Michael McGrath

Question:

49. Deputy Michael McGrath asked the Minister for Finance the test that a person with a disability must pass in order to be deemed permanently incapacitated and thereby entitled to an exemption from DIRT; if a doctor's certificate is required on the level of capacity; and if he will make a statement on the matter. [11241/14]

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Written answers

I have been informed by the Revenue Commissioners that an individual may claim an exemption from DIRT if he or she

1. is permanently incapacitated by reason of physical or mental infirmity from maintaining himself or herself, and

2. is not liable to pay income tax by reason of the level of his or her income.

The individual must apply to their local Revenue office, on form DE2, requesting the exemption and stating that he or she is permanently incapacitated from maintaining himself or herself.

The relevant legislation does not prescribe a list of injuries, infirmities or disabilities which render an individual incapacitated from maintaining himself or herself. However, the legislation does require that the incapacity of the individual must be such that it permanently prevents the individual from maintaining himself or herself. Accordingly, if the incapacity can be corrected or relieved by the use of any treatment, device, medication or therapy, such that the individual is not permanently prevented from maintaining himself or herself, the individual would not be considered to be permanently incapacitated.

 In circumstances where it is not clear whether the person's incapacity is such that it prevents the person from maintaining himself or herself, the local Revenue office may request that a doctor's certificate be submitted. In such circumstances the doctor's certificate should contain the following information

a) the date the incapacity first arose;

b) the degree and extent of the incapacity; and

c) confirmation that the incapacity is such that it prevents the individual from maintaining himself or herself.

Banking Operations

Questions (50, 51, 52, 53)

Pearse Doherty

Question:

50. Deputy Pearse Doherty asked the Minister for Finance if he has expressed any concern to Ulster Bank regarding its global restructuring group division and its treatment of viable businesses. [11354/14]

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Pearse Doherty

Question:

51. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the alleged actions of Ulster Bank’s global restructuring group division in forcing viable businesses to liquidate; and if he will make a statement on the matter. [11355/14]

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Pearse Doherty

Question:

52. Deputy Pearse Doherty asked the Minister for Finance the safeguards that are in place to prevent a foreign owned bank with an Irish subsidiary using its Irish bank as a bad bank and liquidating viable Irish businesses to provide a cash injection to the parent bank. [11356/14]

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Pearse Doherty

Question:

53. Deputy Pearse Doherty asked the Minister for Finance the options open to Irish business that are being pressurised to sell assets to satisfy the needs of a foreign bank. [11357/14]

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Written answers

I propose to take Questions Nos. 50 to 53, inclusive, together.

I am aware of the content of the Tomlinson report and its allegations regarding the Global Restructuring Group within RBS to which the Deputy refers. My officials met with Ulster Bank officials on 27 November 2013 following the publication of the report. The report contained allegations about West Register. In this regard, my officials were assured that West Register was involved with a small number of Irish businesses. There is no reference to Ireland in the report. There were media reports in January 2014 which stated that Dr Tomlinson was meeting with business customers of Ulster Bank in Northern Ireland. Dr Tomlinson stated that some of the customers he met with were from the Republic of Ireland. Any complaints made to Dr Tomlinson will be referred to the Financial Conduct Authority (FCA) in the UK, which is conducting an independent review of the treatment of business customers by the RBS Group. Separately, RBS has appointed Clifford Chance to review the treatment of distressed customers by the Global Restructuring Group and report early in the year. I also understand that the findings of the Clifford Chance review will be applied across the RBS Group.

I would also refer the Deputy to the Central Bank's revised Code of Conduct for Business Lending to SMEs, which came into effect on 1 January 2012. A copy of the Code is available on the Central Bank's website.  I am informed by the Central Bank that if a customer believes that the Code of Conduct has not been applied to his or her case by a regulated entity, a complaint should be made to  the Central Bank at fspsupervision@centralbank.ie.

Banking Sector Regulation

Questions (54, 55)

Pearse Doherty

Question:

54. Deputy Pearse Doherty asked the Minister for Finance the input he had into the review of the Royal Bank of Scotland; and if he will make a statement on the matter. [11358/14]

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Pearse Doherty

Question:

55. Deputy Pearse Doherty asked the Minister for Finance the input he will have into a future review of Ulster Bank’s operations. [11359/14]

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Written answers

I propose to take Questions Nos. 54 and 55 together.

The Deputy will be aware that, following the review by the UK Treasury in Autumn 2013, RBS reaffirmed its commitment to the Irish market. As part of that process, Treasury officals engaged with officials from my Department.  RBS is currently reviewing the operations of Ulster Bank in Ireland with a view to creating a sustainable business model and on 27 February 2014, RBS re-iterated its commitment to the Irish market. RBS also stated its intention to build on Ulster Bank's current position to be a compelling challenger bank to the domestic pillar banks and focus firmly on the customer. It is good news that the bank has committed so firmly to the Irish market.

From a domestic banking perspective, the continued presence of a viable and active Ulster bank in the Irish market will be important in fostering competition for banking services. It is vital that businesses and consumers have a range of banking options available when using financial services and accessing credit - all of which will become increasingly important as the economy recovers. Officials in the Department of Finance have been in contact with both RBS and Ulster bank officials and this will continue as the bank finalises its plans for the future. I also met with RBS executives to ascertain their outlook for the bank both here and in the UK.

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