Written Answers Nos. 144-154
144. Deputy Dominic Hannigan asked the Minister for Finance his plans to deal with the remaining mortgages that are under the control of the Irish Bank Resolution Corporation; and if he will make a statement on the matter. [20013/14]
View answerAs the Deputy is aware, NAMA will not now be obliged to purchase unsold IBRC assets at their independent valuation as previously envisaged. The Special Liquidators will now devise and manage a further sales process in respect of the unsold residential mortgages in a manner that maximises the return to all remaining creditors of IBRC, including the State. This process is being finalised however the Special Liquidators will be writing in the coming weeks to borrowers with unsold loans to inform them of the further sales process in respect of their loans.
145. Deputy Michael McGrath asked the Minister for Finance if a restriction applies to staff at the Financial Services Ombudsman office arbitrating on a case involving a firm in which they were previously employed; and if he will make a statement on the matter. [20014/14]
View answerI am informed that the Financial Services Ombudsman's Bureau considers that the former employment of a member of the Bureau by a regulated financial services provider which may be the subject of a complaint before the Bureau, does not of itself preclude that member of the Bureau from engaging in a mediation, investigation or adjudication involving that financial services provider in the absence of any particular circumstances which might materially adversely affect the impartiality of the Bureau member vis-à-vis that financial services provider.
Where such particular circumstances may arise, for example, where the Bureau member may be aware of particular facts involving that complaint or may have been privy to information particular to that complaint arising from their former employment, such that their impartiality might be compromised, the policy and practice of the Bureau is to ensure that mediation, investigation or adjudication is carried out by another member of the Bureau.
I am informed by the Financial Services Ombudsman's Bureau that, prior to assigning a Bureau member to the mediation, investigation or adjudication of any complaint received, the Financial Services Ombudsman ensures that no conflict of interest arises on the part of that Bureau member such as would materially adversely affect the impartiality of that Bureau member in the mediation, investigation or adjudication of that complaint. In the event that such a conflict arises, the mediation, investigation or adjudication of the relevant complaint is assigned to another member of the Bureau where no such conflict arises.
The staff of the Bureau is composed of persons from a broad variety of backgrounds and relevant experience including some members with financial industry experience. The Financial Services Ombudsman is satisfied that no conflict of interests (real or perceived) affects any of the services offered by the Bureau, including mediations, investigations or adjudications.
146. Deputy Michael McGrath asked the Minister for Finance if a person who takes out a tracker mortgage and subsequently avails of a fixed rate offer from their bank is entitled to return to the tracker rate once the fixed rate period concludes; the obligations on a bank to advise customers availing of a fixed rate offer of the conditions that will apply when the period ends; and if he will make a statement on the matter. [20015/14]
View answerFirstly, I must confirm to the Deputy that it is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of individual mortgage holders.
On the issue more generally, under the Central Bank's Consumer Protection Code, a regulated financial institution must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market. Furthermore, the Code requires a regulated financial institution to make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer. Paragraph 6.9 of the Consumer Protection Code refers specifically to cases where a regulated financial institution offers a personal consumer the option to move from a tracker interest rate to an alternative rate on the existing loan. As well as the information provision, the paragraph also requires that a specific warning is issued in circumstances where a personal consumer will not be allowed to revert to a tracker interest rate if that consumer moves to an alternative rate.
147. Deputy Jonathan O'Brien asked the Minister for Finance the cost of allowing parents to claim back the value of VAT charged on school ebooks. [20033/14]
View answerI am informed by the Revenue Commissioners that the amount of VAT collected from the supply of school ebooks is not separately identifiable from the supply of other goods or services as businesses are obliged to calculate and return VAT by reference to their entire taxable supplies. As such, the Commissioners are unable to estimate the cost of such a scheme.
148. Deputy John Lyons asked the Minister for Finance if consideration will be given to tax reliefs for management company fees; and if he will make a statement on the matter. [20035/14]
View answerAs the Deputy will be aware, Mortgage Interest Relief was abolished for new home purchasers in 2013. However, in recogntion of the peak in house prices, the relief is still available for first time buyers who took out their first mortgage between 2004 and 2008. This relief will continue up to and including the 2017 tax year. In addition, rent relief was abolished in Budget 2011 for new claimants. Existing claimants will see a gradual reduction in the amount of tax relief available with a complete cessation of relief in 2017.
In relation to rental property, section 97(2)(d) of the Taxes Consolidation Act 1997 provides for a deduction in computing taxable rent in respect of the cost of maintenance, repairs, insurance and management of the property. As the Deputy will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. The Deputy will also appreciate that I must be mindful of the public finances and the many demands on the Exchequer given the significant budgetary constraints. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
149. Deputy Michael McCarthy asked the Minister for Finance if he will arrange for the Revenue Commissioners' records to be amended regarding a local property tax liability in respect of a person (details supplied) in County Cork. [20036/14]
View answerI am advised by the Revenue Commissioners that a key aspect of the work undertaken in regard to Local Property Tax (LPT) was the development of a comprehensive Register of residential properties in the State. The Register was populated using data drawn from a range of sources including Revenue's own databases, the Local Government Management Agency database and data from various utility companies. The various data sets were cross-checked by Revenue to ensure the accuracy of the information in respect of each property being included on the Property Register.
However, given the scale of the project it was inevitable that there would be some errors and in a small number of instances properties were either duplicated, or omitted from, the Property Register. Revenue clearly indicated this possibility in all of its communications in regard to LPT and stressed that in such circumstances the onus was on the property owners to make contact and provide the correct details.
In regard to the specific case to which the Deputy refers, the person in question received correspondence on a number of occasions since the commencement of LPT but failed to engage with Revenue until now, to advise that the LPT had been previously paid by another family member. A duplicate record had been registered on the basis that two versions of the address, Terrace and Crescent, were in use for the particular property and the person in question was associated with one of the records. Revenue has now confirmed that the duplicate record has been removed from the LPT Register and that the 2013 LPT return has been filed and paid for both 2013 and 2014 and that the Household Charge has also been paid in respect of the relevant property.
150. Deputy Brendan Griffin asked the Minister for Finance the reason a person who secured a mortgage from Irish Nationwide Building Society is not permitted to draw down the final portion of the agreed mortgage following the takeover by Irish Bank Resolution Corporation; if this constitutes a breach of agreement on IBRC's part; and if he will make a statement on the matter. [20065/14]
View answerI am advised by the Special Liquidators that they are not in a position to comment on individual cases. The information requested is confidential and it would not be appropriate for the Special Liquidators to release such information.
151. Deputy Ann Phelan asked the Minister for Finance the amount of public land available, by county, that could be used by equine rescues; if there are currently any National Asset Management Agency properties, with stables and paddocks, that could be made available for use by animal welfare organisations such as horse sanctuaries; if there is a database with this information publically available; and if he will make a statement on the matter. [20071/14]
View answerI wish to advise the Deputy that the use of public land in this way falls outside the remit of my Department. However, I am happy to provide some guidance with regard to NAMA. As the Deputy may be aware, NAMA does not own properties. NAMA has acquired loans and its role in relation to properties underlying those loans is, like a bank, that of a secured lender. Other than properties that have been enforced, all of which are listed on NAMA's website and are managed by the appointed receivers/administrators, properties continue to be managed by their existing owners. Therefore, individuals or groups interested in buying or leasing properties for uses such as horse sanctuaries should, in the first place, identify suitable properties in the areas in which they live. They should then contact the owner or, in the case of enforcement, the appointed receiver/administrator.
NAMA, like other lenders, is precluded from disclosing details relating to its debtors and their properties but a full listing of NAMA-related properties subject to enforcement is available on the NAMA website, www.nama.ie. This listing includes contact details for the appointed receiver/administrator. If a Deputy has a query about a specific NAMA property, they can contact NAMA on oir@nama.ie. This email has been set up to specifically dealing with queries from Members of the Oireachtas on NAMA and is actively monitored.
152. Deputy Pearse Doherty asked the Minister for Finance the position regarding the maple ten loans to the former Anglo Irish Bank; if any of these loans were repaid, partially or in full; and if not, if he will direct the special liquidators at the Irish Bank Resolution Corporation to ensure these loans are pursued. [20120/14]
View answerI am advised by the Special Liquidators that they are not in a position to comment on individual cases. I am further advised that the information requested is confidential and it would not be appropriate for the Special Liquidators to release such information. However, the Special Liquidators are taking appropriate action having given full condiseration to their duties as Special Liquidators and in particular the maximising of commercial return for the creditors.
153. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 54 of 17 April 2014, if there have been other incidents in which he has been consulted in deciding not to pursue legal proceedings against any persons-bodies by the former board of the Irish Bank Resolution Corporation or by the current special liquidators; and if so, if he will set out the specifics of such occasions including the names of the persons-bodies involved and the dates of the decisions. [20121/14]
View answerUnder the terms of the Relationship Framework in place between IBRC and the Department the bank was obliged to consult with me and keep me informed in relation to all material litigation in the bank. Details in relation to these frameworks can be found on the Department website at http://banking.finance.gov.ie/presentations-and-latest-documents/.
I can confirm that I was consulted on a number of legal cases as per the Relationship Framework in place with the bank. I am not in a position to provide any details in relation to individual cases as it would be inappropriate to comment on proceedings that are before the courts. I can confirm that I have not been consulted by the former board of Irish Bank Resolution Corporation or by the Special Liquidators as to the discontinuance of proceedings against any of the former directors of INBS (with the exception of Dr Cornelius Power, as dealt with in my reply to Parliamentary Question No. 54 of 17 April 2014).
154. Deputy Pearse Doherty asked the Minister for Finance if the National Asset Management Agency is aware of other trusts that were set up by developers in its remit before entering agreements with the agency; and if NAMA is currently pressing other developers to unwind trusts of their assets. [20122/14]
View answerI am advised that NAMA is aware of trusts set up by debtors through its valuation and business review processes and through its asset searches, which are designed to verify debtors' asset statements.
As part of the NAMA business plan process, sworn statements of affairs were required from debtors. These statements were intended to provide a comprehensive account of a debtor's financial affairs, including details of various trust arrangements in place, details of any unencumbered assets which might be available to support repayment capacity and details of any recent transfers of assets to relatives and associates. In completing the statements of affairs, debtors were reminded that the provision of false or inaccurate information to NAMA is a criminal offence under Section 7 of the Act. Where NAMA has become aware of a possible failure of debtors to fully disclose their assets and liabilities in their statement of affairs, it has referred this to the Garda Bureau of Fraud Investigation. NAMA has also initiated cases in the Irish and English High Courts and in the US and Canadian Courts for the reversal of asset transfers, including residential property, shares and other assets.
To ensure that debtors repay their debt to the fullest extent possible, NAMA requires that they provide security over unencumbered assets not previously pledged as loan security, including assets held in trusts, and that they arrange for the reversal of recent transfers to relatives and others, where applicable. In this way, NAMA has to date obtained charges over additional security with an aggregate value of approximately €800m. NAMA's policy is to ensure, by means of negotiation and through the courts system, that debtors apply all their available assets to repayment of their debt to taxpayers.
