Thursday, 17 Jul 2014

Written Answers Nos. 126-157

Revenue Commissioners Powers

Questions (126)

Michael McGrath

Question:

126. Deputy Michael McGrath asked the Minister for Finance the general revenue compliance initiatives that are currently under way; and if he will make a statement on the matter. [32476/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that achieving a high standards  of tax and duty compliance is their core business and that all of their resources are, directly or indirectly, deployed to support voluntary compliance and tackle non-compliance.  Compliance is at the heart of the Commissioners Mission and Strategy Statement.

The various compliance activities carried out by the Commissioners include debt management, tax returns compliance, anti-smuggling operations, risk-based and random compliance interventions, border control checks, tackling aggressive tax and duty avoidance schemes as well as work to combat shadow economy practices that include joint investigations with other Government Departments and agencies.  Revenue's Annual Report for 2013 which is available on Revenue's website at: http://www.revenue.ie/en/about/publications/annual-reports/2013/index.html will provide the Deputy with some sense of the breadth of the Commissioners' compliance activities.  

The Commissioners advise that in their compliance activities, their main focus continues to be on the riskiest cases. This strategy maximises tax recoveries and reduces the regulatory and administrative burden placed on largely compliant customers. Cases are selected in a number of ways including the use of REAP which is Revenue's electronic risk analysis system, the use of advanced analytics to support real-time risk models for VAT and PAYE and debt recovery to identify risky cases in realtime through enhanced third party information like supply chain data on fuel oil movements, merchant acquirer data on credit and debit card transactions and Government payments data.

The Deputy will also be aware from questions that he has raised previously in the House that specific programmes are currently ongoing in Revenue relating to compliance with Local Property Tax obligations, Household Charge Arrears and the National Contractors project to which he has received comprehensive replies.

It is clear to me that Revenue is very much a compliance focussed tax administration.  The various strategies and approaches they adopt to maximise compliance are regularly reviewed by the Commissioners and their ensuing programmes take account of the emerging risks and challenges.  I am also aware that Revenue monitors international developments for new ways of tackling all forms of non-compliance using a risk-based approach while ensuring that compliant taxpayers are not unduly burdened with unnecessary costs and administrative overheads.  

Over the last number of Finance Acts, I have introduced various measures to facilitate tax and duty compliance.  I will continue to respond positively through the Finance Bill to well designed proposals from the Commissioners that tackle non-compliance and support legitimate trade. 

Banking Sector Regulation

Questions (127)

Michael McGrath

Question:

127. Deputy Michael McGrath asked the Minister for Finance the number of persons who have not passed the Central Bank’s fitness and probity regime in the banking and finance industry; and if he will make a statement on the matter. [32477/14]

Written answers

Minister for Finance

In 2011 the new fitness and probity regime was rolled out by the Central Bank in accordance with the provisions of the Central Bank Reform Act 2010. The regime provides for new powers to be exercised by the Central Bank to ensure the fitness and probity of nominees to key positions within financial service providers and of key office-holders within those providers.

The fitness and probity regime came into effect on 1 December 2011 for all regulated financial service providers other than credit unions and was fully implemented by 1 December 2012. The regime for credit unions came into effect on 1 August 2013 and is due to be fully implemented by 1 August 2016.

The Central Bank fulfils its fitness and probity functions under the Central Bank Reform Act 2010 in respect of all proposed Pre-approval Controlled Functions (PCFs) by assessing applications for approval to the relevant roles within the regulated financial service provider.  All assessments of fitness and probity of persons being proposed to PCF roles (and of persons performing controlled functions (CFs) are made with respect to the criteria set out in Section 25(3) of the Central Bank Reform Act 2010 and a Code issued by the Central Bank under Section 50 of the Act entitled "Fitness and Probity Standards (Code issued under Section 50 of the Central Bank Reform Act 2010). 

The Central Bank may refuse to approve a proposed appointment to a PCF role where it is of the opinion that the proposed appointee is not of such fitness and probity as is appropriate to perform the relevant function.  Where the Central Bank is minded to refuse a proposed appointment, a letter is issued to the proposing entity (and copied to the applicant) setting out the grounds for arriving at this preliminary opinion.  The proposing entity and applicant are given adequate time to consider the preliminary opinion and respond to the Central Bank before a formal refusal would be issued.  I have been informed  by the Central Bank that it has been the general practice for the applicant to withdraw their application either without embarking on or prior to the conclusion of the refusal process.  While withdrawals may arise as a result of a preliminary opinion of the Central Bank to refuse the application, they also arise in cases where an applicant's situation changes.

The following table outlines the number of applications for the years 2012, 2013 and to end-quarter 2, 2014. Figures for 2011 are not included as the fitness and probity regime only came into effect in December 2011.

-	2012	2013	2014 (end-Q2)
Applications processed	2,658	2,912	1,198
Approved	2,234	2,522	975
Returned as incomplete	331	278	189
Withdrawn	93	112	34

The Central Bank publishes figures annually on fitness and probity applications in its Annual Performance Statement.

NAMA Debtor Agreements

Questions (128, 152, 170)

Michael McGrath

Question:

128. Deputy Michael McGrath asked the Minister for Finance the number of asset transfers to family members by the National Asset Management Agency, NAMA, debtors that have been reversed; the total value involved; and if he will make a statement on the matter. [32478/14]

Michael McGrath

Question:

152. Deputy Michael McGrath asked the Minister for Finance the number of court cases that National Asset Managment Agency, NAMA, has taken or plans to take to secure reversal of asset transfers by NAMA debtors which the agency believes were designed to put assets beyond the reach of the agency; if he will provide a breakdown of the type of assets which have been returned to the agency thus far including cash, property and so on; and if he will make a statement on the matter. [32623/14]

Michael McGrath

Question:

170. Deputy Michael McGrath asked the Minister for Finance the number of court cases that the National Asset Management Agency, NAMA, has taken or plans to take to secure reversal of asset transfers by NAMA debtors which the agency believes were designed to put assets beyond the reach of the agency; if he will provide a statement of value and a breakdown of the type of assets which have been returned to the agency thus far including cash, property and so on; and if he will make a statement on the matter. [32676/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 128, 152 and 170 together.

I am advised by NAMA that it has obtained additional security over assets with an aggregate value in excess of €800m.   NAMA advises that this breaks down circa two-thirds/one-third between property and non-property assets, mainly share portfolios and cash.   Further detail on this process is set out in NAMA's Annual Report and Financial Statements for 2012, pages 25-26, and its Annual Report and Financial Statements for 2013, page 16.  These reports are available on the Agency's website, www.nama.ie.

Question No. 129 answered with Question No. 107.

Banking Sector Redundancies

Questions (130)

Michael McGrath

Question:

130. Deputy Michael McGrath asked the Minister for Finance the total number of jobs lost in the domestic banking sector in the State since 2008; and if he will make a statement on the matter. [32480/14]

Written answers

Minister for Finance

Given the extent and nature of the financial crisis in Ireland it was inevitable that the banking sector would consolidate in order for the sector to better match the needs of the economy. Central Statistics Office figures show that there were 109,800 persons employed in the financial, insurance and real estate activities sector at end 2008. This figure droppped to 97,100 at end 2013 but rose to 97,800 in the first quarter of 2014.  Figures relating specifically to the domestic banking sector are not readily available.

It is important to highlight that the Irish financial market also offers opportunities to institutions. This Government has taken steps to ensure that the Irish financial market is accessible to any financial institution considering establishing in Ireland. In seeking to reduce the barriers to entry which are specific to the Irish banking market, Section 149 of the Consumer Credit Act, as amended, which provides for the regulation of bank fees and charges has been disapplied for the first three years in the case of new financial service providers setting up in Ireland.  This arrangement was provided for in the Central Bank (Supervision and Enforcement) Act 2013.

Mortgage Interest Relief Eligibility

Questions (131)

Michael McGrath

Question:

131. Deputy Michael McGrath asked the Minister for Finance if a person in arrears with a mortgage but who continues to pay some but not all of the mortgage interest is entitled to mortgage interest relief subject to meeting the other eligibility criteria; and if he will make a statement on the matter. [32481/14]

Written answers

Minister for Finance

I am advised by Revenue that Section 244 of the Taxes Consolidation Act 1997 provides for mortgage interest relief (MIR) in respect of qualifying interest paid in a tax year.

The allowable relief is based on the actual amount of interest paid by the borrower. For example, where the borrower pays the correct mortgage amount on time in accordance with the terms of the loan then the full MIR entitlement is paid. However, where the borrower does not make payments or pays less than the full amount of interest due, then the MIR entitlement is reduced to reflect the actual amount paid.

NAMA Accounts

Questions (132)

Michael McGrath

Question:

132. Deputy Michael McGrath asked the Minister for Finance the amount of cash reserves currently held by the National Asset Management Agency; the nature of the account in which the money is deposited; the rate of return being earned; and if he will make a statement on the matter. [32483/14]

Written answers

Minister for Finance

I am advised by NAMA, that as at 30th June 2014, NAMA had cash and cash equivalents of approximately €3 billion earning an average rate of 0.04%.  €1.7 billion of this balance was invested in Irish Exchequer notes with a maturity of less than two months. €1 billion collateral was placed with the NTMA through a CSA (Collateral Support Annex) on foot of derivatives executed with the NTMA as counterparty. The residual cash balance was placed with the Central Bank of Ireland and NTMA appro ved credit counterparties with a maturity of less than 1 week. NAMA seeks to ensure that it has sufficient liquidity at all times to meet drawdown commitments and its contractual obligations.  As surplus cash builds up, NAMA looks to redeem the NAMA Senior notes.

Question No. 133 answered with Question No. 70.

National Treasury Management Agency Bonds

Questions (134)

Michael McGrath

Question:

134. Deputy Michael McGrath asked the Minister for Finance the take up to date of sovereign annuity bonds by the pension industry; and if he will make a statement on the matter. [32485/14]

Written answers

Minister for Finance

Irish Amortising Bonds were launched in 2012 in response to demand from the Irish domestic pensions industry. The National Treasury Management Agency has advised that there is currently €1.4 billion issued. The NTMA operates an open window of supply of these bonds as demand arises from the industry.

National Pensions Reserve Fund Administration

Questions (135)

Michael McGrath

Question:

135. Deputy Michael McGrath asked the Minister for Finance the value of the discretionary portfolio including cash balances held by the National Pensions Reserve Fund; when he expects the portfolio to be liquidated; and if he will make a statement on the matter. [32486/14]

Written answers

Minister for Finance

I am informed by the National Treasury Management Agency (NTMA), the manager of the National Pensions Reserve Fund (NPRF), that the discretionary portfolio of the NPRF was valued at €6.9 billion as at 31 March 2014,  of which cash balances amounted to €2.7bn.

The legislative proposals to establish the Ireland Strategic Investment Fund (ISIF) which will absorb the NPRF and have a statutory mandate to invest on a commercial basis to support economic activity and employment in Ireland are expected to be enacted shortly.  The existing global and Irish assets of the NPRF will be transferred to the ISIF once the relevant Commencement Order is signed by the Minister. The global assets will be liquidated over time as suitable Irish investment opportunities arise and are developed.

I might add that more than 70% of the Discretionary Portfolio's assets (€5.5bn as at 31 March 2014) can be realised in less than 30 days, so liquidity should not be an issue for the ISIF.  

Tax Yield

Questions (136)

Michael McGrath

Question:

136. Deputy Michael McGrath asked the Minister for Finance the forecast revenue that will be raised by the carbon levy in respect of each product on which it is applied in 2014; and if he will make a statement on the matter. [32487/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the forecast revenue from Carbon Tax and associated estimated VAT in respect of each commodity in 2014 is as shown in the following table. Carbon Tax receipts to end June 2014 are €208m.

2014 Forecast	Estimated Carbon (€m)	Estimated Associated VAT (€m)	Total (€m)
Auto Diesel	146.67	3.37	150.05
Petrol	65.20	15.00	80.19
Aviation Gasoline	0.03	0.01	0.03
Kerosene	46.44	4.39	50.83
MGO	59.29	5.60	64.89
Fuel Oil	2.55	-	2.55
LPG	4.82	0.65	5.47
Auto LPG	0.07	0.02	0.08
Natural Gas	56.54	4.58	61.12
Coal	15.98	2.16	18.14
Peat	5.56	0.75	6.31
Total	403.14	36.52	439.66

State Bodies

Questions (137)

Michael McGrath

Question:

137. Deputy Michael McGrath asked the Minister for Finance his views on the operation of the State Claims Agency; its success in limiting costs arising from personal injury and property damage claims against the State; and if he will make a statement on the matter. [32488/14]

Written answers

Minister for Finance

The NTMA is designated as the State Claims Agency (SCA) when performing the claims management and risk management functions delegated to it under the National Treasury Management Agency (Amendment) Act, 2000.

The SCA's principal objectives are:

- To ensure that the State's liabilities in relation to personal injury and property damage claims, and the expenses of the SCA in relation to their management, are contained at the lowest achievable level;

- To implement targeted personal injury and property damage risk work programmes to mitigate litigation risk, in State Authorities and Health Care Enterprises, in order to reduce the costs of future litigation against the State.

Since its inception in 2001, the SCA has been to the forefront of the State's response to a number of threatened incipient mass actions such as asbestos "worried well", sexual abuse, organ retention and orthopaedic implants categories of cases.  As a result of securing early, precedent, decisions in the High and Supreme Courts, the SCA has prevented the proliferation of mass action claims against the State. 

In addition, in its day-to-day activities defending clinical negligence and non-clinical negligence cases, the SCA continues to make significant savings for the State.  In 2012, an independent actuarial assessment projected that €127. 5 million would be required in that year to cover both the cost of resolving clinical claims and managing ongoing active claims.  The net cost, taking account of successful recoveries from third parties, was €84 million a saving of 34%.  Similarly, in 2013, an independent actuarial assessment projected that €154 million would be required to cover the cost of resolving clinical claims and managing ongoing active claims.  The eventual outturn was €119.7 million a saving of €34.3 million or 22%.

In 2012, the Government decided to establish a Legal Costs Unit (LCU) within the State Claims Agency to deal with third-party costs arising from certain Tribunals of Inquiry.

Approximately 220 cost orders have been made in the Mahon Tribunal.  The LCU received 104 costs claims to end of May 2014 seeking a total of €8.53 million.  Seventy-three of these claims, seeking €3.53 million, have been negotiated and settled at €1.96 million without the necessity for taxation, representing a saving of approximately 44%.

A further 125 cost orders have been made in respect of the Moriarty Tribunal.  The LCU received 27 costs claims to the end of May 2014 seeking a total of €8.55 million.  Twenty-four of these claims, seeking €2.86 million, have been negotiated and settled at €1.41 million without the necessity for taxation, representing a saving of approximately 50%. 

In relation to legal costs, concerning the State Claims Agency and its portfolios of claims, the Agency in an initiative designed to reduce barristers' fees invited barristers to tender competitively for their services in 2012.  This tender competition followed the success of a similar initiative by the SCA in 2011 which reduced the costs of fees paid to solicitors by some 25%.  The new barristers' panels were put in place in January 2013 and are expected to yield legal costs savings in excess of 25% on an annual basis.

Finally, the SCA vigorously pursues all available money recoveries in accordance with best claim practices and as permitted by law.  One such example is the recovery of moneys by means of third party/co-defendant contributions.  Whether by adjudication of the court or agreement with the third party/co-defendant, a specified percentage contribution in relation to a particular claim may be paid by the third party/co-defendant to the SCA.  Additionally, in certain cases, an indemnity in full may be received from a third party/co-defendant.  The SCA succeeded in recovering €15.2 million in the calendar year 2011, €3.9 million in 2012 and €1.7 million in 2013.

Tax Yield

Questions (138)

Michael McGrath

Question:

138. Deputy Michael McGrath asked the Minister for Finance the total amount raised from stamp duty on residential property and separately from commercial property in 2013; and if he will make a statement on the matter. [32489/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the yield in 2013 from Stamp Duty on residential property sales was €65.5 million and on non-residential property sales was €86.9 million. It is not possible to separately identify commercial property from within the broader non-residential category.

Departmental Programmes

Questions (139)

Michael McGrath

Question:

139. Deputy Michael McGrath asked the Minister for Finance his views on allowing persons who purchased a bicycle under the cycle to work scheme but whose bicycle was subsequently stolen to purchase another bicycle under the scheme prior to the end of the five-year period that normally applies; and if he will make a statement on the matter. [32490/14]

Written answers

Minister for Finance

The purpose of the cycle to work scheme is to encourage more employees to cycle to and from work, or between work places, thereby contributing to lowering carbon emissions, reducing traffic congestion and improving health and fitness levels.

Under the scheme an employer may provide an employee with a bicycle and/or cycle safety equipment without the employee being liable for benefit-in-kind taxation.  However, where the expenditure by the employer exceeds €1,000, the excess amount is liable to tax.

The legislation only allows for one purchase of a bicycle in respect of an employee in a 5-year period irrespective of whether the bicycle was used for the full period or not.  It operates on a self-assessing basis using straightforward rules. 

Any deviation from the current system would involve additional administrative procedures for either or both Revenue and employers in relation to the verification of loss, theft, insurance recovery, etc.  As this runs counter to the existing provisions which are administratively simple, it would not be appropriate to alter the existing scheme.

In any event, bicycles are normally covered as part of a general household insurance policy or some people may opt to have specific cover for it.  Where an insurance policy pays out for a bicycle then the stolen one may be replaced at no cost to the individual.

IMF Loan

Questions (140)

Michael McGrath

Question:

140. Deputy Michael McGrath asked the Minister for Finance the current funding commitment to the International Monetary Fund; and if he will make a statement on the matter. [32491/14]

Written answers

Minister for Finance

The IMF is a quota-based institution.   Each member is assigned a quota, broadly based on its size relative to the world economy. A member's quota determines its maximum financial commitment to the IMF, as well as its voting power, and has a bearing on its access to IMF financing. Quotas are denominated in Special Drawing Rights, the IMF's unit of account.

Ireland's IMF quota is currently SDR 1,257.6 million, or 0.528% of the total quota share of the IMF. This has been the case since 4 March, 2011, when the 2008 Quota Review came into force.   Details of transactions on the Central Bank's IMF accounts are set out in the Annual Report on Ireland's Participation in the IMF and the World Bank (available at www.finance.gov.ie/publications).

Ireland's quota is due to increase to SDR 3,449.9 million, or 0.724% of the total quota share of the IMF, once the latest proposed Quota changes, agreed in 2010, are implemented.   The 2010 Quota increases are part of an overall package of reforms of quotas and of the Executive Board of the IMF. However, while the increases to the quotas themselves have since been approved, the proposed changes to the Executive Board have not yet received the required level of consent of members. As a result, the overall package of reforms including the quota increase has not yet been implemented.  

State Bodies Funding

Questions (141)

Michael McGrath

Question:

141. Deputy Michael McGrath asked the Minister for Finance the annual cost associated with the running of the Irish Fiscal Advisory Council; and if he will make a statement on the matter. [32492/14]

Written answers

Minister for Finance

The Irish Fiscal Advisory Council was established on a statutory basis on the 31 December 2012 under the Fiscal Responsibility Act 2012. The Deputy should be aware that the Irish Fiscal Advisory Council is an independent body in compliance with the requirements of the Treaty on Stability, Coordination and Governance done at Brussels on 2 March 2012.

Any expenditure incurred by the Irish Fiscal Advisory Council in the performance of its functions since its establishment on a statutory basis at the beginning of 2013, is charged on and paid out of the Central Fund.

In 2013, the Fiscal Council received a total of €499,939. So far in 2014, the Fiscal Council has received a total of €359,981.

To facilitate payments from the Central Fund, the Fiscal Council has provided projected costs for the full year in 2014. The projected costs for 2014 are €732,020.

The accounts of the Fiscal Council are audited by the Comptroller and Auditor General, who is required to make a report to Dáil Éireann with respect to the correctness of the sums brought to account by the Fiscal Council in the year. The Fiscal Council's 2013 accounts are currently being audited by the Comptroller and Auditor General.

In due course, the Fiscal Council will send a copy of the audited accounts for 2013 to my Department and I will lay them before the Houses of the Oireachtas.

Credit Unions Regulation

Questions (142)

Michael McGrath

Question:

142. Deputy Michael McGrath asked the Minister for Finance the number of credit unions currently subject to lending restrictions; the average length of time for which these have applied; and if he will make a statement on the matter. [32493/14]

Written answers

Minister for Finance

The imposition of lending restrictions is the responsibility of the Registrar of Credit Unions, who is the independent regulator for credit unions.  Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.

As Minister for Finance, my role is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.

Acting as the independent regulator, the Registrar of Credit Unions at the Central Bank has applied lending restrictions to some credit unions. In its recently published 'Credit Union PRISM Risk Assessments: Supervisory Commentary', the Central Bank has highlighted that the majority of credit unions visited have been required to implement actions to remediate risk and substantially improve their lending and credit risk management standards and practices.  Where required, risk mitigation has included the Central Bank imposing lending restrictions until fundamental weaknesses are addressed. These lending restrictions have been put in place in credit unions where there are regulatory concerns about the operation of these individual credit unions and the potential risk to members' savings.

Currently about 59% of all credit unions are subject to lending restrictions. Almost all credit unions with a lending restriction in place have a maximum individual loan size restriction. Of the credit unions with lending restrictions, approximately 70% currently can lend €20,000 or more to an individual member, which is a sizeable monetary amount and should cover most individual  circumstances.

The Central Bank advises that it sees restrictions, in most cases, as short term in nature, to be lifted when risks have been addressed satisfactorily and necessary corrective measures embedded. The Registrar of Credit Unions informs me that lending restrictions are reviewed on a regular basis. I have introduced legislative changes so that lending restrictions are now subject to an independent appeals process.

I have, on a number of occasions, highlighted the Governments' recognition of the important role of credit unions as a volunteer co-operative movement in this country and also the importance of getting lending going in the economy. However, the issue of lending needs to be constructively considered in order to ensure a viable credit union sector into the future.

Budget 2015

Questions (143)

Michael McGrath

Question:

143. Deputy Michael McGrath asked the Minister for Finance the process, and estimated timeline for each of the stages, involved in the preparation of budget 2015; and if he will make a statement on the matter. [32494/14]

Written answers

Minister for Finance

The budgetary process for 2015, like any other year, is a "whole-year" process and in that regard preparations have already commenced for Budget 2015. 

The Deputy should be aware of the arrangements introduced under the new EU semester, whereby the Stability Programme Update, containing revised macroeconomic and budgetary projections, was prepared and submitted to the European Commission last April. This document was also laid before the Dáil and published on the Department of Finance website.

Following this, papers are prepared on the options for tax policy, to be discussed in early September as part of the Tax Strategy Group process. These will feed into the tax measures considered as part of Budget 2015. The Department of Public Expenditure and Reform will also be publishing a Comprehensive Review of Expenditure and a Capital Review, both of which will identify our expenditure priorities for the coming years. These will be published at Budget time.

I, as the Minister for Finance, and Brendan Howlin, as the Minister for Public Expenditure and Reform, along with our respective Departments, will work very closely in the compilation of Budget 2015, as the expenditure estimates are obviously a key factor in devising budgetary policy and calculating the overall budgetary arithmetic.

As per last year, the macroeconomic forecasts which underpin the Budget will be subject to endorsement by the Irish Fiscal Advisory Council (IFAC) in advance of publication. The endorsement process will begin soon after the publication of Q2 National Accounts data by the CSO in September. The timelines for this process are laid out in a Memorandum of Understanding between the Fiscal Advisory Council and the Department of Finance, which are available on both websites. My Department will subsequently forecast the fiscal and budgetary data, based on these macroeconomic forecasts and taking into account any decisions made as part of Budget 2015. In this context, the end-September Exchequer returns will be taken into account.

Subsequently, Budget 2015 will be published on Tuesday October 14th , in conjunction with the publication of the Expenditure Report by my colleague, the Minister for Public Expenditure and Reform, Mr Brendan Howlin TD.

The Finance Bill will be published shortly afterwards, to be enacted by 31st December. The publication of the Revised Estimates Volume is a matter for Minister Howlin, but will be published before the end of the year.

IBRC Liquidation

Questions (144)

Michael McGrath

Question:

144. Deputy Michael McGrath asked the Minister for Finance if Irish Bank Resolution Corporation referred any matters to the Office of the Director of Corporate Enforcement or other authorities during the period up to and including its liquidation; and if he will make a statement on the matter. [32495/14]

Written answers

Minister for Finance

The Special Liquidators are in the process of compiling a response to this question which I will forward to the Deputy at the earliest opportunity.

IMF Loan

Questions (145)

Michael McGrath

Question:

145. Deputy Michael McGrath asked the Minister for Finance the average maturity of the remaining EU and IMF loans under Ireland’s programme of assistance; and if he will make a statement on the matter. [32496/14]

Written answers

Minister for Finance

The National Treasury Management Agency (NTMA) have advised that, following the final EU/IMF Programme disbursement of €0.8 billion from the European Financial Stabilisation Mechanism (EFSM) in March 2014, the estimated weighted average maturity of the EU/IMF Programme loans was 12.7 years at end-March 2014.   

This estimated weighted average maturity reflects the maturity extensions to loans from the European Financial Stability Facility (EFSF) agreed in June 2013. Following the maturity extension agreement, the first of the EFSF loans will mature in 2029.

While maturity extensions to loans from the EFSM were also agreed in 2013, the revised maturity dates will only be determined as they approach their original maturity dates. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. As the details are not yet finalised however, it is necessary to make certain assumptions regarding the extension commitment in relation to EFSM loans in order to calculate the estimated weighted average maturity.

NAMA Operations

Questions (146)

Michael McGrath

Question:

146. Deputy Michael McGrath asked the Minister for Finance his views on whether the National Asset Management Agency will engage in demolition of part-built housing schemes; and if he will make a statement on the matter. [32497/14]

Written answers

Minister for Finance

NAMA advises that, in the case of unfinished housing estates, where buildings are unsafe or otherwise not viable, demolition may be considered as an option.  NAMA advises that whilst a decision to demolish any building or development is not taken lightly, it may be considered as a means of reaching resolution on properties where the development is unviable for economic, structural or safety reasons.  NAMA provides further detail on this in its Annual Report and Financial Statements for 2012, which is available on its website, www.nama.ie.  The Deputy may, in particular, wish to refer to pages 36-37.

NAMA's practice where it holds security over unfinished housing estates is to require its debtors and receivers to prepare Site Resolution Plans, which must be agreed with each relevant local authority with input from residents and other stakeholders.  I am advised by NAMA that through this mechanism it has to date provided funding of the order of €4m for a variety of works, including the completion of internal roads and other estate infrastructure and the completion of houses and apartments for sale or rent.   

Vehicle Registration

Questions (147)

Denis Naughten

Question:

147. Deputy Denis Naughten asked the Minister for Finance the number of appeals lodged in relation to VRT imposed on imported vehicles in 2012, 2013 and to date in 2014; the amount refunded in each year; and if he will make a statement on the matter. [32505/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that VRT appeals in relation to imported vehicles relate mainly to the determination of the Open Market Selling Price on which VRT is calculated and it is assumed that this is the matter of interest to the Deputy. The statistics below show the number of vehicles registered in 2012, 2013 and to date in 2014, the appeals lodged in those periods where the basis of the appeal was valuation* and the VRT refunded on such appeals in those periods.

Year	Number of imported used  vehicles charged to VRT on the basis of value	Number of appeals relating to valuation of imported vehicles and converted vehicles.	VRT refunded in the year**
2012	41,481	900	€598,444
2013	51,526	1,198	€682,054
2014	29,736 at 30th June	743 on 16th July 2014	€449,755

* a small number relate to converted vehicles rather than imported vehicles

** The appeals lodged in a year do not correlate exactly to vehicles imported in that year as some may relate to vehicles imported in the later part of the preceding year. This arises because a payer has two months in which to lodge an appeal.

NAMA Operations

Questions (148, 155)

Michael McGrath

Question:

148. Deputy Michael McGrath asked the Minister for Finance if NAMA has identified any possible breaches of confidentiality; if so, details of the number of such cases; and if he will make a statement on the matter. [32548/14]

Michael McGrath

Question:

155. Deputy Michael McGrath asked the Minister for Finance apart from the recent case which has been referred to An Garda Síochána, if the National Asset Management Agency has since its inception identified any other possible breaches of confidentiality whereby commercial agency belonging to the agency has been used or removed in an unauthorised fashion by an employee of the agency; and, if so, to provide details of the number of such cases and to make a comprehensive statement of the action taken in each case. [32628/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 148 and 155 together.

I am advised by NAMA that the position in this matter is as set out by the NAMA Chief Executive before the Dáil Committee of Public Accounts in December 2013. As the particular case to which the Deputy refers now rests with An Garda Síochána, it would not be appropriate for me to make any further comment at this time.

NAMA Portfolio

Questions (149, 156)

Michael McGrath

Question:

149. Deputy Michael McGrath asked the Minister for Finance if NAMA has identified any unapproved purchases of properties in the agency's portfolio by a serving or former employee of the agency; if so, the number of such cases; and if he will make a statement on the matter. [32549/14]

Michael McGrath

Question:

156. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency has since its inception identified any unapproved purchases of properties in the agency's portfolio by a serving or former employee of the agency; and, if so, the number of such cases and the action taken in each case. [32629/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 149 and 156 together.

I am advised by NAMA that it is not aware of any such unauthorised purchases. 

Irish Water Remit

Questions (150, 163)

Catherine Murphy

Question:

150. Deputy Catherine Murphy asked the Minister for Finance the planned institutional relationship between his Department and Irish Water once the latter moves under the auspices of his Department; the way it is expected that the key environmental policy supports which currently exist in the Department of the Environment will be provided to Irish Water from his Department; if any risks have been identified arising from the transfer of functionality; and if he will make a statement on the matter. [32604/14]

Michael McGrath

Question:

163. Deputy Michael McGrath asked the Minister for Finance the role his Department will have in relation to the operation and oversight of Irish Water; and if he will make a statement on the matter. [32668/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 150 and 163 together.

The Water Services Acts 2013, the act under which Irish Water was established, provided that there will be two classes of shares in Irish Water: 

- a single share issued to Bord Gáis Éireann which will carry all voting rights (since it is expressly provided that no voting rights will attach to the remaining shares to be issued); and

- non-voting shares half of which are issued to the Minister for Finance and half to Minister for Environment Community and Local Government.

In addition, NewERA, which is under the remit of the National Treasury Management Agency, is continuing to provide financial and commercial advice on the setting up of Irish Water.  This is in line with NewERA's role in providing commercial advice to Government Departments and Ministers.  The primary involvement of my Department has been to assist with the financing of Irish Water which kept it off balance sheet.  Policy in relation to Irish Water is a matter for the Minister for Environment, Community and Local Government. As Irish Water was established as a subsidiary of Bord Gais Éireann, the Minister for Communications, Energy and Natural Resources also has statutory functions in relation to Irish Water.    As with all public expenditure policies involving public funds or semi-states, the Minister for Public Expenditure and Reform has an oversight role.  In relation to water charging, the Water Services (No. 2) Act 2013 makes the Commission for Energy Regulation responsible for decisions on the charging structure for water supply.  The Government's intention is that following the sale of the Generation assets by Bord Gais Éireann, the establishment of Eirvia and the placement of NewEra on a statutory footing,  there will be a future examination and rationalisation of the shareholding structure in Irish Water. This will be the subject to a Government decision in the autumn.  It is envisaged that this will not impact on the policy roles for the various Government Departments as outlined above. 

Customs and Excise Controls

Questions (151)

Michelle Mulherin

Question:

151. Deputy Michelle Mulherin asked the Minister for Finance the number of private aircraft searched by customs for drugs in 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [32618/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that all private aircraft arrivals at Ireland West Airport Knock are monitored on an on-going basis. The risk of smuggling (including drug smuggling) using unscheduled flights is fully appreciated by Revenue and is the subject of continuous assessment and risk analysis. The decision on whether or not to search a private aircraft is based on risk analysis, profiling, evaluation of national and international smuggling trends, journey frequency, routes and other risk indicators. It can also be a result of specific intelligence.  Flights with origins and destinations with a high-risk rating attract particular attention.

While private aircraft are boarded from time to time at the Airport to check for any excisable products or prohibited items including drugs, it is not appropriate for the Revenue Commissioners to publish precise details of such enforcement activities as this could prejudice current or future operations. The Commissioners further advise me that passengers and crew from private aircraft who enter the State are subject to the same checks as any other arrivals, including individual profiling, and are liable to be checked by Revenue Customs staff and screened by the drug detector dog.

In line with best practice in customs administrations globally, Revenue regards the development and management of information and intelligence as critical to the detection of evasion and smuggling, including drug smuggling.  This is very important in the case of Ireland and other EU Member States where the operating environment for Customs has been shaped to a significant degree by the introduction of the Internal Market and the related principles of freedom of movement within the EU. Of specific relevance are the abolition of routine and systematic Customs checks on goods and passengers moving within any part of the EU. The approach has, of necessity, been to balance the freedom of movement principle in regard to people and goods with the need to control smuggling.

I can assure the Deputy that the Revenue Commissioners attach the highest priority to combating the smuggling of controlled drugs and are committed to playing an active role, in conjunction with other relevant agencies, in working against this criminal activity and those responsible for it.

Question No. 152 answered with Question No. 128.

National Treasury Management Agency Deposits

Questions (153)

Michael McGrath

Question:

153. Deputy Michael McGrath asked the Minister for Finance the amount of cash reserves currently held by the National Treasury Management Agency, NTMA; if the NTMA has any plans to borrow further money on the markets in 2014; and if he will make a statement on the matter. [32624/14]

Written answers

Minister for Finance

The National Treasury Management Agency (NTMA) has advised that at end-June 2014 the Exchequer had €20.6 billion available in Exchequer cash and other short-term investments. Cash balances are expected to decrease significantly by year-end due to the recent bond buy-back/switch conducted by the Agency (NTMA), the projected Exchequer Borrowing Requirement (EBR) in the second half of the year and maturing short-term debt.

On 10 July 2014, the NTMA completed an auction of €500 million of the benchmark 10-Year Irish Government bond, the 3.40% Treasury Bond 2024, at a yield of 2.315 per cent. With that transaction, the NTMA has raised €7 billion in the bond markets so far this year which is more than 87 per cent of the funding target of €8 billion announced in February 2014 for the full year. The auction on 10 July completes the bond auction schedule for the third quarter of 2014. A statement on the NTMA's bond issuance plans for the fourth quarter of 2014 will be made at a later date.

A Treasury Bill auction will take place on 18 September 2014, subject to market conditions. Details will be announced on 15 September.

Tax Code

Questions (154)

Michael McGrath

Question:

154. Deputy Michael McGrath asked the Minister for Finance the number of people who paid the domicile levy for each year since it was introduced; and if he will make a statement on the matter. [32626/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the table below sets out the number of domicile levy returns received in respect of each year since its introduction together with the amount of levy declared in respect of those returns and the amounts that have been paid. Outstanding amounts are subject to on-going compliance and enforcement action.

Returns for the tax year 2013 are due to be filed by 31 October 2014 (and by 13 November 2014 if filed electronically by way of ROS). 

Year for which return is made	Number of returns	Amount of domicile levy per those returns	Amount of domicile levy paid in relation to returns filed
2010	26	3,051,714	2,691,645
2011	22	2,687,365	2,488,127
2012	15	1,899,726	1,778,368

Question No. 155 answered with Question No. 148.

Question No. 156 answered with Question No. 149.

Question No. 157 answered with Question No. 57.