Written Answers Nos. 94-125
94. Deputy Ruth Coppinger asked the Minister for Finance if he has estimated the impact that the building of enough local authority homes to clear the waiting list would have on house prices and rents in the private market. [32428/14]
View answerOver the last 18 months or so the private housing market in Ireland has been characterised by price and rent increases. These have been most pronounced in urban areas, particularly Dublin. This is most likely driven by a supply-demand mismatch in these urban areas. The current level of new builds is very low by reference to historical norms as well as estimates of medium-term housing demand.
In order to address the current inadequacies in the market, the recently published Construction 2020 strategy sets out a range of actions to be taken in the immediate future which aim to address, among other issues: housing supply, with a particular focus on planning issues and appropriate and sustainable development financing; transparent and sustainable mortgage lending; as well as the application of the tax code to the construction and property sectors.
Action 1 of the Strategy provides a National Framework for Housing Supply is to be established on a statutory footing with an annual National Statement of Projected Housing Supply and Demand to be published every June. The Department of Environment, Community and Local Government (DECLG) has advised me that the Housing Agency has been asked to take the lead in implementing this Action.
The proper management of all State land is critical; accordingly, both lands that have been transferred to the Housing Agency and lands held by local authorities which are suitable for development will be the first sites considered in any future targeted social housing building programme. DECLG's annual Housing Land Availability Survey (HLAS) gathers information from local authorities to inform the publication of the amount of zoned residential land in their areas that is currently serviced. It is currently estimated that there are in excess of 25,000 hectares of undeveloped residentially-zoned land nationally, which equates to a capacity for over 500,000 new homes (based on a national average of 20 units per hectare). This capacity is considered to be sufficient to meet total housing requirements nationally for more than the next ten years. In line with the commitments under the Construction 2020 strategy, a Housing Supply Co-ordination Task Force for Dublin has been established with an immediate focus on addressing supply-related issues in the capital.
Under Action 8 of Construction 2020, a Social Housing Strategy is to be published by the end of the third quarter of 2014. To assist in the development of the Social Housing Strategy, the Housing Agency has invited submissions by 31 July 2014. This invitation for submissions is available at the following weblink: http://www.housing.ie/News/Current-News/Invitation-for-Submissions-Preparation-of-a-Social.aspx .
Regarding the recent rise in rents, the Private Residential Tenancies Board has been asked to carry out a focused piece of research that will explore options to address the difficulties being experienced in segments of the private rented sector and to report back to the Minister for the Environment, Community and Local Government with policy recommendations in the coming weeks. With regard to broader social housing policy, the Housing (Miscellaneous Provisions) Bill 2014 will provide for the introduction of the new Housing Assistance Payment (HAP) scheme. HAP will provide a new framework for the provision of rental assistance and will, in as much as it can, facilitate the removal of existing barriers to employment by allowing HAP recipients remain in the scheme if they gain full-time employment. It is expected that the Bill will be enacted by the summer, following which the commencement date and the detailed terms of the scheme will be prescribed.
DECLG expects the final output across all social housing programmes for 2014 to be in the region of 6,000 new housing units. The number and method of delivery of social housing units in future years is determined in the course of the annual Estimates process and will be informed by the Social Housing Strategy which is currently in preparation and which will set out clear objectives in respect of delivery over the next five years.
95. Deputy Ruth Coppinger asked the Minister for Finance if he has an estimate of the impact that reductions in the public sector budget and the growth in temporary and part-time contracts and lower wages in the public sector have had on the wage share to GDP ratio. [32429/14]
View answerThe public service Exchequer wage bill (net of pension related deductions) has been reduced by 17 per cent since 2008, with public service employment volumes falling by 10 per cent.
The most definitive source of wage data comes from the annual National Income and Expenditure Accounts, recently published by the Central Statistics Office. These reveal that the whole economy wage bill has fallen from 45 per cent of GDP in 2008, to under 43 per cent of GDP by the end of 2013. These available aggregate data capture both public and private sector wage developments and are derived from employment on both a full and part-time basis. They include both wages and salaries and employers' PRSI contributions. On a GNP basis, the fall in the wage share over this period is slightly more pronounced: from 53 per cent to 50 per cent.
Relating specifically to public service developments, compensation of public employees (excluding those in commercial state-sponsored bodies) as a share of GDP has fallen from 11¼ per cent in 2008 to 10½ per cent in 2013.
96. Deputy Ruth Coppinger asked the Minister for Finance the primary budget deficit if there were no adjustments in budget 2015. [32430/14]
View answerThe most up-to-date budgetary estimates, published in the Stability Programme Update (SPU) in April, are based on the assumption of a consolidation package of €2.0bn in 2015 which is designed to deliver a deficit of 2.9 per cent of GDP in 2015. This forecast projected that the primary general government balance will be €3.3 billion in 2015 (1.9% of GDP). The macroeconomic forecasts underpinning the SPU have been endorsed by the Irish Fiscal Advisory Council (IFAC).
As the Deputy may be aware, the SPU forecast did not take into account the recently revised estimates of GDP by the Central Statistics Office. This will be taken into account along with the most up-to-date macroeconomic and fiscal data when deciding on the adjustment package necessary closer to Budget time.
Furthermore, I should point out that a different quantum of consolidation would change the outlook for economic activity and revenue growth. Therefore, the exact impact on revenue and the deficit is difficult to estimate given the significant number of dependent factors.
Overall, given the number of moving parts and only six months of revenue and expenditure data to hand, it is too early to speculate on what the starting position for the Budget will be. The next formal forecast will be set out in the White Paper on Receipts and Expenditures which will be published in advance of the Budget and will set out the no-policy-change position for 2015 based on the updated macroeconomic forecasts that have to be endorsed by (IFAC).
97. Deputy Ruth Coppinger asked the Minister for Finance the cumulative level of all the cuts and adjustments implemented in all the budgets from 2009 onwards. [32431/14]
View answerFirstly, I note that the Deputy has requested the cumulative level of adjustment in all budgets from 2009. On that basis, the level of adjustment is approximately €30 billion. However, I should point out that significant corrective measures have been implemented since mid-2008. The cumulative level of adjustment including Budget 2014 is almost €31 billion of which circa 60 percent has been on the expenditure side and 40 percent on the revenue side.
98. Deputy Ruth Coppinger asked the Minister for Finance the total Government debt in monetary terms, as a percentage of GDP and as a percentage of GNP for 2007, 2008, 2009, 2010, 2011, 2012, and 2013; if he will provide a breakdown of these figures in both monetary and percentage terms detailing the portion of the debt attributable to public expenditure and the portion attributable to spending on banks such as recapitalisation and servicing the Anglo Irish Bank and Irish Nationwide Building Society promissory notes; and if he will make a statement on the matter. [32432/14]
View answerGeneral government debt from 2007 to 2013 in monetary terms, as a percentage of GDP and as a percentage of GNP is set out in the table.
|
General government debt |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
monetary terms (€bn) |
47.1 |
79.6 |
104.5 |
144.2 |
169.2 |
192.5 |
202.9 |
|
as a % of GDP |
24.9% |
44.2% |
64.4% |
91.2% |
104.1% |
117.4% |
123.7% |
|
as a % of GNP |
28.9% |
51.4% |
78.1% |
109.4% |
129.5% |
145.1% |
147.1% |
(Source: Eurostat, CSO, ESA 95 basis)
The proceeds of all borrowing as well as revenues including tax and non-tax, and capital receipts are lodged to the Exchequer account to fund general expenditure. In general terms, no specific tranches of borrowing were undertaken solely for the purpose of recapitalising the banking sector.
For the years 2007 to 2013, the Exchequer borrowing requirement, general government balance and underlying general government balance is set out in the table.
|
- |
2007 |
2008 |
2009 |
2010 |
|
Exchequer deficit (€bn) |
-1.6 |
-12.7 |
-24.6 |
-18.7 |
|
General government balance (€bn) |
0.3 |
-13.3 |
-22.2 |
-48.4 |
|
General government balance (% of GDP) |
0.2% |
-7.4% |
-13.7% |
-30.6% |
|
Underlying general government balance (€bn) |
0.3 |
-13.3 |
-18.2 |
-16.8 |
|
Underlying general government balance (% GDP) |
0.2% |
-7.4% |
-11.2% |
-10.6% |
(Source: Eurostat, Department of Finance, ESA 95 basis)
The underlying general government deficit excludes the effect of capital injections into financial institutions, in particular the promissory note transactions in 2010. The underlying balance is the measure set under the EDP targets.
The annual Exchequer deficit, which accounts for most of the general government deficit, was borrowed. The additional elements making up the general government deficit in each of the years was largely borrowed with some elements funded using funds accumulated over previous years.
With regard to debt attributable to bank recapitalisation, I provided the following information in a recent PQ (PQ 23246/14);
Capital injections into Irish banks from 2009 to 2011 can be separated into three categories.
(1) Capital injections that were made under Ministerial direction by the NPRF Commission amount to €18.8 billion (net of the sale of Bank of Ireland preference shares in 2013). There is no interest cost associated with these payments as they did not require borrowing.
(2) The promissory notes to IBRC and EBS added €30.85 billion to the general government debt, but not the national debt, in 2010. There was an interest holiday on the IBRC promissory note repayments in 2011 and 2012 and thus zero interest was payable for these years. In 2013 promissory note interest of €214 million was payable up to the date of IBRC's liquidation. General government interest is also payable on the EBS promissory note for all years with an average of €12 million payable between 2012 and 2014. Under the terms of the promissory note an annual payment €3.085 billion was to be made to the beneficiary banks. This payment was made in cash in 2011, and the IBRC element (€3.06 billion) was paid by way of a government bond in 2012. Both these payments impacted the national debt and incurred general government interest costs of approximately €0.3 billion in each of the years 2012 to 2014. The IBRC promissory notes were cancelled and replaced with a portfolio of eight floating rate Government bonds for a total amount of €25 billion. The bonds pay interest every six months (June and December) based on the six month Euribor interest rate plus an interest margin. The margin averages 2.63% across the eight issues. This gave rise to payments of €0.65 billion in 2013 and an estimated €0.8 billion in 2014. The Deputy should note that these payments contribute significantly to the surplus income of the Central Bank, up to 80% of which is paid to the Central Fund in the following year.
(3) By the end of 2013, €10 billion (net of the sale of Bank of Ireland equity in 2011, the sale of Irish Life and the sale of contingent capital notes in 2013) is estimated to have been paid through direct payments from the Exchequer account to the banking sector.[1] Although no specific borrowing was made in the cases of interventions paid through the Exchequer, the impact can be estimated using the average rate of interest on government debt.
[1] This figure excludes fees paid to the Minister under the Credit Institutions Financial Support and Eligible Liabilities Guarantee schemes amounting to €4.4 billion from 2008 to 2014.
99. Deputy Michael McGrath asked the Minister for Finance if he will set out, in tabular form, the number of applications received and granted for a banking licence in the State in each year since 2010. [32439/14]
View answerAs Minister for Finance I have no role in the granting of a banking licence. Section 9 of the Central Bank Act, 1971 (as amended) outlines the role of the Central Bank in granting, or refusing to grant, a banking licence. I have been informed by the Central Bank that it has received only one application for a new bank licence since 2010. The application in this case was successful and the licence was granted in June 2013.
While the Central Bank currently has sole responsibility in this regard, under the Single Supervisory Mechanism Regulation which is due to take effect from 4 November 2014, the European Central Bank will have exclusive competence for the authorisation, and the withdrawal of authorisation, of credit institutions.
100. Deputy Michael McGrath asked the Minister for Finance if he has carried out a cost-benefit analysis of the exemption he is granting from capital gains tax to farmers who have sold their single farm payment entitlement; and if he will make a statement on the matter. [32440/14]
View answerThe background to the Deputy's question is that a technical change made at EU level to the new Common Agriculture Policy (CAP) arrangements for replacing the Single Payment Scheme for farmers with the Basic Payment Scheme after this year impacts on farmers who let 100% of their farmland and their single farm payment entitlements. As a result of the change, farmers in this position would have lost their farm payment entitlements and the Department of Agriculture, Food and the Marine advised those farmers to transfer those entitlements to active farmers by 15 May last (the deadline by which the change takes effect and after which the payment entitlements in the hands of the affected lessor farmers would be worthless).
On 1 May last, I announced my intention, based on the case made to me, to provide for an exemption from CGT on any chargeable gains arising from the disposal by the owners of payment entitlements under the Single Payment Scheme where all of those entitlements were leased out in 2013 and where the owners, because of the change in CAP regulations, were advised by the Department of Agriculture, Food and the Marine, to transfer their entitlements to an active farmer by 15 May 2014. I propose to include appropriate provisions to give effect to the CGT exemption in Finance Bill 2014 which will be published shortly after Budget 2015 in the Autumn.
I support the principle of ex-ante and ex-post economic impact assessments, including cost benefit analysis in formulating and evaluating tax policy and, since coming into office, I have instructed my Department to carry out a range of significant economic assessments of various tax expenditure measures. I do not, however, automatically follow this course in every tax change I have made or put forward, as circumstances and common sense also have a bearing on the decisions to be made in this regard. I did not have a cost benefit analysis carried out in this instance.
Among the reasons for this is that the CGT exemption will apply on a once-off basis only and to a specified number of affected farmers who would not have disposed of their leased farm payment entitlements if it were not for a change to EU regulations which was outside of their control. Moreover, I was persuaded that, since the Department of Agriculture had advised affected farmers involved in leasing to dispose of their leased payment entitlements in circumstances where they would not otherwise have done so, significant damage would be done to the critical policy of encouraging longer term leasing in the absence of the CGT tax concession. Encouraging land mobility through long-term leasing has been one of the main drivers in agri-taxation policy. Long-term leasing provides the certainty required to encourage lessees to invest and improve land and encourages progressive and competitive farmers to enlarge their farm holdings. Finally, since a decision had to be made in this matter within a relatively short period before 15 May last, there was insufficient time to conduct any meaningful impact analysis.
101. Deputy Michael McGrath asked the Minister for Finance the revenue that would be foregone by amending the universal social charge to raise the threshold for the 2% rate to €12,000, €15,000 and €17,500, respectively. [32443/14]
View answerI am advised by the Revenue Commissioners that the full year cost, estimated by reference to 2014 incomes, of increasing the 2% USC rate threshold to €12,000, €15,000 and €17,500 is tentatively estimated to be of the order of €189 million, €465 million and €685 million, respectively.
These figures are estimates for 2014 incomes from the Revenue tax forecasting model using latest actual data for the year 2011, adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. Married persons or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
102. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the yield in each year since 2011 from the pension fund levy; the yield to date in 2014; and if he will make a statement on the matter. [32446/14]
View answerI am informed by the Revenue Commissioners that receipts to date from the 0.6% Stamp Duty levy on pension fund assets, introduced in the Finance (No. 2) Act 2011, are as follows:
|
Year |
Yield (€ million) |
|
2011 |
463 |
|
2012 |
483 |
|
2013 |
535 |
The deadline date for payment this year of the Pension Fund Levy and of the additional 0.15% levy on pension funds introduced in Budget 2014 is 25 September 2014. The combined forecast yield is €675 million.
103. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the number of persons or mortgage accounts in receipt of tax relief at source in each year from 2010 to date in 2014; the projected cost of the scheme this year; and if he will make a statement on the matter. [32447/14]
View answerI am advised by Revenue that mortgage interest relief (MIR) is paid by way of tax relief at source (TRS) through the relevant lending institutions.
The number of mortgage accounts in receipt of MIR and the cost of the scheme in each year from 2010 to 2014 (at end May) is set out in the table below. The full cost for 2014 is estimated at €350m.
|
Tax Year |
Number of Accounts |
Cost |
|
2010 |
349,533 |
€349.3m |
|
2011 |
352,806 |
€344.0m |
|
2012 |
355,366 |
€390.0m |
|
2013 |
346,499 |
€342.5m |
|
2014 |
340,734 |
€112.1m |
104. Deputy Michael McGrath asked the Minister for Finance the number of registered moneylenders in the State in each year since 2010; his views on the existing legislative protection for consumers availing of the services of moneylenders; and if he will make a statement on the matter. [32448/14]
View answerThe total number of licensed moneylenders in the State at the end of each year is as follows:
2010 - 46
2011 - 48
2012 - 44
2013- 40
The total number as at 15 July 2014 is 41.
Licensed moneylenders must comply with (among others) the:
- Central Bank's Consumer Protection Code for Licensed Moneylenders (the Code),
- European Communities (Consumer Credit Agreements) Regulations 2010, as amended, and
- Consumer Credit Act, 1995.
Compliance with regulatory and legislative requirements is monitored by the Central Bank on an ongoing basis through a robust annual licensing process, ongoing supervision, themed and institution specific inspections, mystery shopping, consumer intelligence and monitoring of complaints. Failure to adhere to the provisions may lead to proceedings under the Administrative Sanctions Procedures, which enable the Central Bank to sanction and to fine regulated entities for breaches of regulatory requirements. Licensed moneylenders are also subject to the Central Bank's fitness and probity regime.
The Code sets out General Principles with which a moneylender must comply. For example, a moneylender must act honestly and professionally, with due skill, care and diligence in the best interest of consumers. The Code also places requirements on moneylenders in relation to the provision of information to the consumer, preservation of a consumer's rights, unsolicited contact (cold calling), disclosure, errors, handling complaints, consumer records, unsolicited credit facilities, arrears and guarantees, debt collection and the contents and presentation of advertisements.
In order to further inform the Central Bank's supervisory approach - in addition to its inspection work and ongoing monitoring activities - the Bank published a report on the moneylending sector in Ireland in November 2013. A copy of the report is available on the Central Bank's website.
Overall, the research shows that there are some positive findings in relation to how licensed moneylenders are treating their customers and also in the increasing level of awareness of the costs of such loans. However, the Central Bank will continue to monitor this sector closely and to take action, where necessary, to protect borrowers' interests.
A distinction should be made between licensed and unlicensed moneylenders. The Central Bank has no power or regulatory role in regard to unlicensed moneylenders and reports suspected cases of unauthorised moneylending activity to the Garda Síochána for further investigation.
105. Deputy Michael McGrath asked the Minister for Finance the value of senior and subordinated bonds outstanding in AIB, Bank of Ireland and PermanentTSB; and if he will make a statement on the matter. [32449/14]
View answerI have received the following information from the Banks.
Allied Irish Banks
All relevant data in relation to AIB's senior and subordinated bonds outstanding are made on pages 281-283 of AIB's 2013 Annual Financial Report which is accessible at https://www.aib.ie/servlet/BlobServer/document.pdf?blobkey=id&blobwhere=1391509734902&blobcol=urlfile&blobtable=AIB_Download&blobheader=application/pdf&blobheadername1=Content-Disposition&blobheadervalue1=document.pdf
Bank of Ireland
Information relating to debt instruments issued by Bank of Ireland Group and outstanding at 31 December 2013 is set out in the Group's annual report for 2013 which is accessible at http://www.bankofireland.com/fs/doc/wysiwyg/bank-of-ireland-annual-report-for-the-year-ended-31-december-2013.pdf
Information relating to debt instruments issued by Bank of Ireland Group and outstanding at 30 June 2014 will be made available by the Group post 1 August 2014 which is the date on which the Group currently anticipates publishing its interim results for the period to 30 June 2014.
Permanent TSB
Information relating to the value of senior and subordinated bonds outstanding in Permanent TSB at 31 December 2013 can be found in the annual financial statements, which are accessible at: http://www.permanenttsbgroup.ie/~/media/Files/I/Irish-Life-And-Permanent/Attachments/pdf/2014/ptsb-annual-report-2013.pdf .
106. Deputy Michael McGrath asked the Minister for Finance the average interest rate currently applying to each source of funds under the EU-IMF programme of assistance for Ireland; and if he will make a statement on the matter. [32451/14]
View answerI am advised by the NTMA that the position on the interest rates for Ireland's programme loans is as follows.
In relation to the EFSF, €7.2 billion of Ireland's EFSF loans are at fixed interest rates which were based on a matched EFSF bond/loan structure. As a result of changes to the EFSF's structure which removed the direct link between specific bond issues and programme countries, the balance of Ireland's disbursed EFSF loans, currently €11.2 billion, are part of a pooled system whereby all programme countries pay the same interest rate. The pooled interest rate is calculated daily and is based on the EFSF's cost of funds in managing the pool. This can be characterised as the weighted average cost of its bond and bill issuance. As at 31 March 2014 the blended effective interest rate on Ireland's EFSF loans was 2.31%.
The effective interest rate on Ireland's EFSM loans is based on the EFSM's cost of funds when it issues bonds. As at 31 March 2014 the blended interest rate on Ireland's EFSM loans was 3.06%.
The interest rate on the United Kingdom's bilateral loan to Ireland is fixed and is based on the weighted gross redemption yield on all UK Debt Management Office (DMO) gilt issuances to the market in the six month period up to the date of the disbursement of each portion of the loan, plus a service fee of 18 basis points. As at 31 March 2014 the estimated blended euro equivalent interest rate on Ireland's UK loans including hedging costs was 1.78%.
The interest rate on both bilateral loans from the Kingdom of Sweden and Kingdom of Denmark is floating and is based on the 3-month euribor plus a margin of 100 basis points. As at 31 March 2014 the interest rates on these loans were 1.34% and 1.33% respectively.
The interest rate on the IMF Extended Fund Facility (EFF) is tied to the IMF's market-related interest rate, known as the basic rate of charge. As the IMF loan is provided in Special Drawing Rights, which is composed of a basket of four currencies (USD, EUR, GBP, JPY), the interest rate is constructed from the 3-month Eurepo, US and UK Treasury Bills and Japanese Government Discount Notes' rates plus a margin of 100 basis points. Borrowings of up to three times a country's IMF quota are subject to the basic rate of charge. Borrowings above three times quota attract a surcharge of 200 basis points which is in addition to the 100 basis points margin which forms part of the basic rate of charge. This surcharge increased to 300 basis points in mid-January 2014 per the IMF rules as the loan size exceeded three times the quota for more than three years after the date of the first disbursement. As at 31 March 2014 the overall estimated blended euro equivalent interest rate on Ireland's IMF loan, including hedging costs, was 4.99%.
The Deputy should note that the mixture of floating and fixed interest rates across facilities and, in the case of the EFSF within a facility, makes it difficult to compare one facility directly against another as they contain different interest rate risk profiles, currencies and maturities. In addition, the floating interest rates quoted are at a point in time and are, therefore, subject to change depending on movements in market rates.
107. Deputy Michael McGrath asked the Minister for Finance the proportion of income earners exempt from income tax in 2014; and if he will make a statement on the matter. [32452/14]
View answer129. Deputy Michael McGrath asked the Minister for Finance the percentage of self-employed people who are outside the income tax net; the way this compares to the percentage of PAYE workers who have no income tax liability; and if he will make a statement on the matter. [32479/14]
View answer159. Deputy Michael McGrath asked the Minister for Finance the number of those in employment earning less than €32,800 per annum; the number earning greater than that amount; and if he will make a statement on the matter. [32664/14]
View answer160. Deputy Michael McGrath asked the Minister for Finance the number of one income married couples with the annual income being less than €41,800 per annum; and if he will make a statement on the matter. [32665/14]
View answer161. Deputy Róisín Shortall asked the Minister for Finance the number and percentage of taxpayers who would be affected by any reduction in the marginal rate of tax. [32666/14]
View answerI propose to take Questions Nos. 107, 129 and 159 to 161, inclusive, together.
I am informed by the Revenue Commissioners that, estimated by reference to 2014 incomes, around 856,000 (39%) income earners are exempt from income tax:
- 75,700 self-employed income earners are exempt from Income Tax, this represents 35% of self-employed income earners and 3% of all income earners.
- 780,300 PAYE income earners are exempt from Income Tax, this represents 40% of PAYE income earners and 36% of all income earners.
It should be noted that this analysis focuses on Income Tax, some taxpayers exempt from Income Tax may be paying Universal Social Charge (USC). Overall, it is estimated by the Commissioners that around 25% of taxpayers pay neither Income Tax nor USC.
I am further informed by the Revenue Commissioners that, estimated by reference to 2014 incomes, the number of income earners with earnings less than €32,800 and more than €32,800 is 1,267,600 and 922,600 respectively. In addition, 266,500 one-income married couples have earnings of less than €41,800.
Regarding a reduction in the marginal tax rate, it is assumed that the Deputy refers to a reduction in the 41% Income Tax rate. On this basis the Revenue Commissioners estimate that, a reduction of that rate would affect approximately 392,000 (18%) income earners.
The figures quoted above are estimates from the Revenue tax forecasting model for 2014, using the latest actual data for the year 2011 adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
108. Deputy Michael McGrath asked the Minister for Finance the revenue that would be raised from reducing the annual earnings limit along with age related percentage limits for maximum tax relievable contributions for pension purposes from €115,000 to €100,000, €90,000, €80,000 and €70,000 respectively; and if he will make a statement on the matter. [32453/14]
View answerIn the time available, having regard to the volume of questions, Revenue are not in a position to provide the information sought. However, I will arrange for the information to be supplied directly to the Deputy.
109. Deputy Michael McGrath asked the Minister for Finance the revenue that would be raised from reducing the level at which individuals and companies can claim interest repayments against tax for residential rental properties from 75% to 60%; and if he will make a statement on the matter. [32454/14]
View answerI am informed by the Revenue Commissioners that a breakdown between rent received from residential and other types of property is not sought or provided in tax returns. However, based on personal Income Tax returns filed by non-PAYE taxpayers for the year 2012, the latest year for which this information is available, and making certain assumptions about the data, it is estimated that the revenue that could be raised from reducing the level at which individuals can claim interest repayments against tax for residential rental properties from 75% to 60% may be in the region of €57 million.
It should be noted that the above estimates do not include returns by some PAYE taxpayers. However, a PAYE taxpayer with non-PAYE income greater than €3,174 is required to complete an Income Tax return Form 11. This return is the source of the figures provided in this reply in respect of individuals.
Rental income of companies is returned as net of interest on borrowings and the figures for interest are not separately distinguished in Corporation Tax returns. There is, therefore, no basis for an estimate of the cost of reducing the tax relief for corporate landlords.
I am advised by the Revenue Commissioners that the estimated cost of interest relief on residential properties is based on assuming that tax relief is allowed at the Income Tax rate of 41% and the figures provided could therefore be regarded as the maximum Exchequer cost in respect of those taxpayers. This figure is subject to adjustment in the event of late returns being filed or where returns already filed are subsequently amended.
110. Deputy Michael McGrath asked the Minister for Finance the cost to the Exchequer per annum of the remaining property-related tax reliefs; when these reliefs will expire; and the amount of money that would be saved for the Exchequer if they were ended immediately or on a more phased basis over a number of years. [32456/14]
View answerIn the time available, having regard to the volume of questions, Revenue are not in a position to provide the information sought. However, I will arrange for the information to be supplied directly to the Deputy.
111. Deputy Michael McGrath asked the Minister for Finance the annual cost to the Exchequer of the use of illegal washed diesel; and if he will make a statement on the matter. [32457/14]
View answerThe Revenue Commissioners, who are responsible for tackling fuel laundering, advise me that there is no reliable estimate of the cost to the exchequer of fuel laundering. However, removal of the marker from rebated fuel represents a significant threat to the exchequer and therefore Revenue has made action against this illegal activity one of its priorities and is implementing a comprehensive strategy to tackle the problem through enhanced supply chain controls, the acquisition of a more effective fuel marker and continued robust enforcement action.
Supply chain controls have been enhanced progressively since 2011 with the objective of reducing the capacity of criminals to source marked diesel for laundering or to get laundered fuel onto the market. The supply chain controls introduced include new licensing conditions for all fuel traders and the introduction from January 2013 of a requirement that all licensed fuel traders, whether dealing in road fuel or marked fuel, make detailed monthly electronic returns to Revenue of their fuel transactions. Revenue is using this data to identify suspicious transactions and patterns of distribution for investigation. Revenue has also intensified its targeting, in co-operation with other law enforcement agencies on both sides of the border, of enforcement action against suspected fuel laundering operations.
To support further the integrity of the distribution system and minimise the risk of fraud, I introduced a provision in the Finance (No. 2) Act 2013 that will make a supplier who is reckless in supplying rebated fuel for a use connected with excise fraud liable for the duty at the standard rate of tax. This new provision will strengthen Revenue's hand in dealing with those traders supplying rebated fuel recklessly to dubious customers and will provide a further disincentive to such activity. Revenue has published guidelines for mineral oil traders which will assist them in identifying and avoiding such transactions.
Revenue works very closely with fuel sector representative bodies in tackling the problem and they have been very supportive of the measures introduced to combat fuel laundering. The evidence available to Revenue, in terms of feedback from the legitimate trade and increased consumption of road diesel, indicates that this strategy has been very effective.
In addition to the measures implemented to date, Revenue and Her Majesty's Revenue and Customs in the UK completed an Invitation to Make Submissions process to identify a new fuel marker and it is expected that a new marker will be introduced in both jurisdictions early in 2015, following consultation with the oil industry and other stakeholders.
112. Deputy Michael McGrath asked the Minister for Finance the annual cost to the Exchequer in each year from 2010 to 2014 of subsidised agricultural diesel; and if he will make a statement on the matter. [32458/14]
View answer117. Deputy Michael McGrath asked the Minister for Finance the approximate number of litres of agricultural diesel which qualified for tax relief, sold in the State in each of the past three years; the approximate number of litres of fully duty paid auto diesel and petrol sold in the State in the same period; and if he will make a statement on the matter. [32466/14]
View answerI propose to take Questions Nos. 112 and 117 together.
I am informed by the Revenue Commissioners that there are no separate statistics available in respect of Marked Gas Oil (MGO) used for agricultural purposes. MGO is used in a very large variety of applications. These extend well beyond agriculture to include the propulsion of trains, the operation of construction and industrial machinery, commercial sea navigation (including fishing) and commercial and home heating.
The cost of charging all MGO clearances (including agricultural diesel) at the reduced rate for the years 2010 to 2014 is shown in the table below. These estimates include VAT. I am advised by the Commissioners that elasticity factors have not been applied in producing these estimates. If the full Auto Diesel rate was applied during those years, the volumes and receipts for each year may have been reduced due to change in consumption because of the increase in prices.
|
- |
€m |
|
2010 |
411.05 |
|
2011 |
426.26 |
|
2012 |
366.58 |
|
2013 |
357.58 |
|
2014 (6 Mths) |
162.67 |
In relation to Question No. 117 (32466/14) based on Revenue clearance data, the number of litres of Petrol, Auto Diesel and MGO where mineral oil tax was paid in the calendar years 2011 to 2013 is as shown in the following table.
|
- |
MGO (litres) |
Auto Diesel (litres) |
Petrol (litres) |
|
2011 |
1,154,645,076 |
2,563,433,251 |
1,829,164,922 |
|
2012 |
1,125,849,000 |
2,548,024,936 |
1,667,582,206 |
|
2013 |
1,101,589,570 |
2,676,358,730 |
1,568,146,960 |
113. Deputy Michael McGrath asked the Minister for Finance the full estimate of the annual cost for 2014 of each tax expenditure on the Statute Book; and if he will make a statement on the matter. [32461/14]
View answerI am advised by the Revenue Commissioners that it is not feasible to estimate the cost of each tax expenditure on an ongoing basis. However, where identifiable, Exchequer costs of Income Tax and Corporation Tax allowances, reliefs, exemptions and tax credits are published in Table IT6 of the "Income Tax" chapter of the Revenue Statistical Report.
The Report is accessible on the Commissioners' website, 2012 is the most recent year available: http://www.revenue.ie/en/about/publications/statistical/2012/index.html
The Income Tax chapter in the 2012 Report shows the relevant information for the years 2010 and 2011. The necessary detailed information is not yet available for more recent years but updates will be published in due course.
114. Deputy Michael McGrath asked the Minister for Finance the annual yield from income tax on benefit-in-kind payments; and if he will make a statement on the matter. [32462/14]
View answerI am informed by the Revenue Commissioners that the taxable value of benefits-in-kind are not identified separately on employer returns so information in respect of benefits-in-kind arising is not captured in such a way as to provide a basis for compiling the costing sought by the Deputy.
115. Deputy Michael McGrath asked the Minister for Finance the amount of tax paid by companies operating in the International Financial Services Centre, Dublin in 2012 and 2013; and if he will make a statement on the matter. [32463/14]
View answerI am informed by the Revenue Commissioners that the most relevant information available to them is the estimated Corporation Tax paid in 2012 and 2013 by companies previously licensed to operate in the International Financial Services Centre (IFSC). This is of the order of €456 million and €497 million in 2012 and 2013 respectively.
It should be noted that these figures relate only to those companies that were once licensed under the preferential IFSC tax regime, which expired in 2005, and for which registrations ceased in 2002. Otherwise, the tax yield from other companies based in the IFSC is not separately identifiable.
116. Deputy Michael McGrath asked the Minister for Finance the change in the general Government debt from December 2007 to December 2013; the way this is broken down between the building up of cash balances, paying for Government goods and services, and recapitalisations of the banks; and if he will make a statement on the matter. [32464/14]
View answerGeneral government debt reported by the CSO from December 2007 to December 2013 is as follows:
|
- |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
General government debt (€bn) |
47.1 |
79.6 |
104.5 |
144.2 |
169.2 |
192.5 |
202.9 |
(Source: Eurostat, ESA 95 basis)
Accumulated exchequer cash and deposit (other short-term investment) balances which were included in the composition of debt are:
|
- |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
Cash and deposit balances (€bn) |
4.5 |
22.1 |
21.8 |
12.6 |
13.1 |
19.3 |
18.5 |
(Source: NTMA)
Spending on government goods and services is contained within the figure for general government expenditure. For the years 2007 to 2013 this amounted to:
|
- |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
General government Expenditure |
69,614 |
77,070 |
78,144 |
103,544 |
76,550 |
69,844 |
70,371 |
|
General government balance |
296 |
-13,309 |
-22,181 |
-48,386 |
-21,350 |
-13,443 |
-11,778 |
(Source: Eurostat, ESA 95 basis)
The general government deficit represents the shortfall between receipts and expenditure. All borrowing undertaken for this purpose is included within the overall debt figure.
No specific borrowing was undertaken in order to fund the recapitalisation of Irish banks and therefore it is not possible to quantify the precise impact to government debt. However, as detailed in a previous response to parliamentary question (PQ 23246/14) regarding the interest cost of the capital injections from 2009 to 2011 I outlined that they can be separated into three categories;
(1) Capital injections that were made under Ministerial direction by the NPRF Commission amount to €18.8 billion (net of the sale of Bank of Ireland preference shares in 2013). There is no debt implications as they did not require borrowing.
(2) The promissory notes to IBRC and EBS added €30.85 billion to the general government debt, but not the national debt, in 2010. There was an interest holiday on the IBRC promissory note repayments in 2011 and 2012 and thus zero interest was payable for these years. In 2013 promissory note interest of €214 million was payable up to the date of IBRC's liquidation. General government interest is also payable on the EBS promissory note for all years with an average of €12 million payable between 2012 and 2014. Under the terms of the promissory note an annual payment €3.085 billion was to be made to the beneficiary banks. This payment was made in cash in 2011, and the IBRC element (€3.06 billion) was paid by way of a government bond in 2012. Both these payments impacted the national debt and incurred general government interest costs of approximately €0.3 billion in each of the years 2012 to 2014. The IBRC promissory notes were cancelled and replaced with a portfolio of eight floating rate Government bonds for a total amount of €25 billion. The bonds pay interest every six months (June and December) based on the six month Euribor interest rate plus an interest margin. The margin averages 2.63% across the eight issues. This gave rise to payments of €0.65 billion in 2013 and an estimated €0.8 billion in 2014. The Deputy should note that these payments contribute significantly to the surplus income of the Central Bank, up to 80% of which is paid to the Central Fund in the following year.
(3) By the end of 2013, €10 billion (net of the sale of Bank of Ireland equity in 2011, the sale of Irish Life and the sale of contingent capital notes in 2013) is estimated to have been paid through direct payments from the Exchequer account to the banking sector. [1] Although no specific borrowing was made in the cases of interventions paid through the Exchequer, the impact can be estimated using the average rate of interest on government debt.
The average rate of interest on general government debt for 2013 is given as 4% in my Department's Stability Programme Update, 2014 published last month. Using this interest rate to estimate the impact of injections into the banking sector from the Exchequer account gives estimated interest costs of €0.45 billion in 2012, €0.5 billion in 2013 and €0.4 billion in 2014.
[1] This figure excludes fees paid to the Minister under the Credit Institutions Financial Support and Eligible Liabilities Guarantee schemes amounting to €4.4 billion from 2008 to 2014.
118. Deputy Michael McGrath asked the Minister for Finance his estimate of the current structural deficit; and if he will make a statement on the matter. [32467/14]
View answerMy Department's latest estimates of the structural deficit were outlined in the April 2014 Stability Programme Update.
The structural deficit is the underlying deficit that would occur in the absence of temporary factors and the impact of the economic cycle on the budget balance. The estimated structural budget deficit in 2013 was 6.2 per cent of GDP, which was projected to fall to 4.7 per cent in 2014. The 2014 estimate comprised the headline general government deficit of -4.8 per cent of GDP, less temporary measures amounting to 0.2 per cent of GDP. To arrive at the structural balance from this, the component of the deficit which related to the position on the economic cycle - the cyclical component - was removed. This component amounts to 0.3 per cent of GDP. This cyclical budgetary component is derived as a function of the output gap. These estimates are based on the harmonised European approach which combines budget semi-elasticities (the responsiveness of the budget balance to changes in the output gap) with the estimated output gap.
Estimates of both the headline fiscal aggregates and the output gap are sensitive to data revisions. This is particularly so in the case of Ireland. The next set of projections will incorporate the impact of the ESA 2010 statistical changes which are currently being implemented across all European Member States.
119. Deputy Michael McGrath asked the Minister for Finance the total tax revenue foregone on the total value of illicit trade included in the recent GDP figures; and if he will make a statement on the matter. [32468/14]
View answerAs the Deputy is aware, the Central Statistics Office (CSO) has recently released updated National Accounts statistics that implement new Eurostat standards. One element of the process is the inclusion of extended estimates for illegal economic activities defined as including prostitution, the production and trafficking of drugs, and alcohol and tobacco smuggling. This illegal economic activity is estimated by CSO at 0.72% of GDP or €1.26 billion in 2013. Furthermore, these estimates suggest that illegal activity has been relatively stable since 2010 (varying between 0.70% and 0.73% over the period).
It is important to note the new CSO estimates do not represent an increase in illegal activity, but merely reflect the inclusion in GDP, for the first time, by the CSO of an estimate for illegal activities. By their nature, when instances of such activity are identified and confronted by law enforcement agencies, those instances cease. Accordingly the question of tax foregone is theoretical and no measure of its quantum is available.
120. Deputy Michael McGrath asked the Minister for Finance the number of private residential and buy to let sub-prime mortgages here; the level of arrears on these mortgages; the average interest rate that applies to these mortgages; his views on the sub-prime sector; and if he will make a statement on the matter. [32469/14]
View answer189. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question Nos. 36, 37 and 45 of 30 January 2014, the number of sub-prime mortgages that have been restructured to date; and if he will make a statement on the matter. [32714/14]
View answer190. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question Nos. 36, 37 and 45 of 30 January 2014, the number of orders for repossession granted to sub-prime lenders in 2013 and to date in 2014; the proportion this represents of all repossessions; and if he will make a statement on the matter. [32715/14]
View answer191. Deputy Michael McGrath asked the Minister for Finance the number of residential mortgages here that are classified as sub-prime; the number of sub-prime lenders currently operating in the market; the total value of sub-prime mortgages outstanding; the rate of arrears on these mortgages; the actions specific to the sub-prime sector which are being taken to address arrears; and if he will make a statement on the matter. [32716/14]
View answerI propose to take Questions Nos. 120 and 189 to 191, inclusive, together.
The Central Bank has advised that there is no such regulated category as 'sub-prime' lender but that phrase is sometimes used to refer to some non-deposit taking 'retail credit firms'. Retail credit firms are a regulated category of entities which are authorised to provide credit (in the form of cash loans) directly to individuals. Some firms authorised in this category are mortgage lenders. Retail credit firms have been subject to regulation by the Central Bank since 1 February 2008. A register of all Retail Credit Firms is available on the Central Bank website at the following link: http://registers.centralbank.ie/DownloadsPage.aspx.
I am informed by the Central Bank that, at end-March 2014, six of these firms had a total of 17,789 primary dwelling (PDH) mortgage accounts of which 4,554 were classified as restructured; four had a total of 739 buy to let (BTL) mortgage accounts of which 88 were classified as restructured. Regarding the level of outstanding debt on these accounts, there was a total of €3.316bn in outstanding PDH debt and a further €0.158bn in outstanding in BTL mortgage debt. Of that outstanding debt, mortgage accounts amounting to €1.880bn (PDH) and €0.083bn (BTL) respectively were in arrears of over 90 days. The Central Bank has advised that it does not publish the interest rates applied by regulated entities.
The Deputy will be aware that the Central Bank's Mortgage Arrears Resolution Targets (MART) announced in March 2013 set time bound and measurable targets for the 6 main banks requiring them to systematically address their arrears book. The Central Bank has informed me that retail credit firms are not subject to the prudential standards set out in the Central Bank's MART. However, the same consumer protection framework applies to retail credit lenders as to other regulated lenders including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears (CCMA). As such the Central Bank engages with these firms in relation to their treatment of borrowers under the mortgage arrears resolution process as provided for in the CCMA. In particular, the CCMA sets out requirements for all mortgage lenders, including retail credit firms, dealing with borrowers facing or in arrears on a mortgage secured on a primary home and provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each of their co-operating borrowers in mortgage difficulty.
The Central Bank has informed me that retail credit firms were also included in the scope of the Central Bank's recent review of the 'Implementation of the Revised CCMA' by mortgage lenders, the purpose of which was to ensure that mortgage lenders achieved full implementation of the requirements of the revised CCMA by end December 2013.
The Central Bank has advised that during 2012, non-bank lenders reported that 59 properties were repossessed following a court order, accounting for 24% of total properties repossessed following court orders. During 2013, non-bank lenders reported that 53 properties were repossessed following a court order, accounting for 15% of the total. In Quarter 1 of 2014, non-bank lenders reported that 9 properties were repossessed following a court order, accounting for 12% of total properties repossessed following court orders.
The Central Bank continues to engage with all mortgage lenders, including retail credit firms, in relation to lenders' mortgage arrears resolution strategies and approaches to dealing with borrowers in or facing arrears. Early and effective engagement between borrowers and lenders is key to resolving cases of mortgage difficulty. Where there is effective and meaningful engagement regarding a mortgage difficulty, the data shows that an increasing number of durable long term mortgage restructures is being put in place.
121. Deputy Michael McGrath asked the Minister for Finance the status of all investigations into the collapse of Custom House Capital; and if he will make a statement on the matter. [32470/14]
View answerThe Central Bank's investigation into Custom House Capital Ltd (in Liquidation) and persons concerned in its management has been on-going since the publication of the Final Report to the High Court by Court Appointed Inspectors dated 19 October 2011.
Upon presentation of the Final Inspectors' Report on Custom House Capital Ltd (CHC) to the High Court in October 2011, Justice Hogan ordered that CHC be wound up immediately. It should be noted that copies of the Final Report have been provided to other relevant state authorities for their consideration i.e. the Minister for Justice and Equality, to the Director of Public Prosecutions, to the Director of Corporate Enforcement, to the Revenue Commissioners and to the Garda Commissioner.
The Central Bank provides regular updates on Custom House Capital on its website. Following consultation with An Garda Síochána, the Central Bank's investigation has been deferred pending completion of investigations by An Garda Síochána.
In order to enhance the investor protection legislative framework, the Central Bank has been provided with extensive new powers since the onset of the financial crises to prevent the loss of client assets as occurred in the case of Custom House Capital. The principal developments are set out below:
Client Assets Regime
An independent review of the Regulatory Regime for the Safekeeping of Client Assets was published by the Central Bank in 2012 and is available on the Central Bank website. The Central Bank accepted the specific recommendations contained in this independent review and established a process of implementing all of the necessary changes required. In 2013 the Central Bank published on its website a Consultation Paper on Client Assets Regulations and Guidance, which will replace the existing client assets requirements (issued in 2007). It is envisaged that the new rules for the Safekeeping of Client Assets will be in place before the end of the year.
New rules in respect of key management positions
I have brought forward a very wide range of statutory powers under the Central Bank Reform Act 2010, which sets out a far-reaching regime for the Central Bank to set out and enforce standards of fitness and probity across the financial service sector.
Enhanced monitoring and enforcement powers for the Central Bank
The Central Bank (Supervision and Enforcement) Act 2013 also sets out a number of new provisions that are relevant. The fitness and probity provisions are reinforced by the whistleblower protections. The Act also provides for the Central Bank to commission, as part of the proper and effective regulation of financial service providers, an independent expert report at the cost of the financial service provider. It strengthens the authorised officer regime, enables the Central Bank to secure assurances from auditors of regulated financial service providers. It also strengthens the enforcement powers of the Central Bank and provides for a substantial increase in monetary penalties . The Central Bank also has the power to suspend or revoke a regulated entity's authorisation following an Inquiry.
122. Deputy Michael McGrath asked the Minister for Finance the timeline projected for the conclusion of the bank stress tests; and if he will make a statement on the matter. [32471/14]
View answerAs the Deputy is aware, the stress test is one of the three components of the SSM Comprehensive Assessment which is currently under way, the other two components being the Supervisory Risk Assessment and Asset Quality Review.
I understand that a lot of work has already been undertaken on the Comprehensive Assessment and that further work will be ongoing over the coming months with the the results due for publication in October 2014.
123. Deputy Michael McGrath asked the Minister for Finance the status of the reports completed by McCann FitzGerald and Ernst and Young into certain corporate governance matters at the former Irish Nationwide Building Society; if the reports have been referred to the gardaí and the Office of the Director of Corporate Enforcement; the action being taken on foot of the content of the reports; and if he will make a statement on the matter. [32472/14]
View answerA s the Deputy is aware a number of reports have been produced by Ernst and Young (now called EY) and McCann FitzGerald at the request of the INBS Board. Copies of all of these reports have been provided to the Central Bank of Ireland (CBI) under the terms of a protocol for limited disclosure agreed between the parties to preserve legal privilege over the material. IBRC was prohibited from disclosing these reports to anyone without the consent of CBI, McCann FitzGerald and Ernst and Young.
The Special Liquidators note the decision taken by IBRC that there was nothing in these reports which required reporting to the Gardaí. I am further advised that the contents of the reports formed the basis of the Administrative Sanctions Procedure the CBI has taken against INBS which is ongoing.
Publication of the reports may be considered when the CBI proceedings are concluded.
124. Deputy Michael McGrath asked the Minister for Finance his views on the manner in which the acquisition of Newbridge Credit Union by PermanentTSB has proceeded; if he expects an additional liability to the State to arise in respect of Newbridge Credit Union; and if he will make a statement on the matter. [32473/14]
View answerPursuant to a High Court order dated 10 November 2013 all assets and liabilities of Newbridge Credit Union Limited - excluding the premises - were transferred to Permanent TSB. At transfer, all savings accounts held in Newbridge Credit Union Limited became deposit accounts with Permanent TSB under section 49(5)(b) of the Central Bank and Credit Institutions (Resolution) Act 2011.
The legal entity Newbridge Credit Union Limited was placed in liquidation following an order of the High Court granted on 16 December 2013. The Newbridge Credit Union building remains in the ownership of the legal entity Newbridge Credit Union Limited. The liquidation process is ongoing.
The Resolution Fund is the principal creditor of Newbridge Credit Union Limited. Any proceeds realised from the sale of the building - net of disposal costs - will be remitted to the Resolution Fund in accordance with the Central Bank and Credit Institutions (Resolution) Act 2011.
I agreed to the Governor of the Central Bank's request for the payment of a financial incentives agreement between the Central Bank and PTSB dated 10 November 2013. The agreement contains provision for payments to PTSB of up to €53.9m under a number of headings. The financial incentives agreement is available on the Central Bank's website.
The headings include the following:
-€23m in cash up front to address the capital shortfall in the balance sheet;-
€4.25m for restructuring and integration costs;
-€2m for other transferring liabilities; and -
A risk share on the transferring loans whereby the State will absorb 50% of the losses where loans perform below their transfer value and 50% of the gains where they perform above the transfer value. If these loans were written off entirely with no recovery this would result in an additional €24.7m total cost.
To date, the Fund has paid €23 million to PTSB as a cash financial incentive on 10 November 2013, and €0.3 million as a Transferring Liability payment.
125. Deputy Michael McGrath asked the Minister for Finance the amount of money currently managed by the National Treasury Management Agency through the various State savings products; if he will provide a breakdown of the overall amount by the type of product, savings bonds, savings certificates, national solidarity bond and so on; the way the money is managed; and if he will make a statement on the matter. [32475/14]
View answerState Savings is the brand name used by the National Treasury Management Agency (NTMA) to describe the range of Government savings products offered by the NTMA to personal savers. All State Savings money form part of the sovereign debt of Ireland, the repayment of which is a direct, unconditional obligation of the State.
The NTMA has advised that the total value of State Savings at end-June 2014 is €18.7 billion and the breakdown by product is as follows:
|
- |
€ million |
|
Savings Bonds |
5,198 |
|
Savings Certificates |
6,105 |
|
Instalment Savings (including Savings Stamps) |
478 |
|
National Solidarity Bonds |
2,165 |
|
Deposit Accounts |
2,667 |
|
Prize Bonds |
2,065 |
|
TOTAL |
18,678 |
