Written Answers Nos. 62-93
62. Deputy Sean Fleming asked the Minister for Finance if the 2011 jobs initiative is still in operation; if so, the total expenditure that will be incurred as part of the jobs initiative in 2014; and if he will make a statement on the matter. [32870/14]
View answerThe position is that in May 2011, I announced the Jobs Initiative. The Jobs Initiative included a range of revenue and expenditure measures which were designed to assist in employment generation and provide opportunities for those who had lost their jobs, while generating confidence in the economy.
Details of the revenue measures as announce are set out in a table.
|
Revenue Measure |
Description |
|
9% VAT rate |
To support the tourism industry, a second reduced rate of VAT of 9% was introduced from 1 July 2011 until end-December 2013. |
|
Pension Funds Levy |
A levy of 0.6% on the market value of assets under management in pension funds and pension plans approved under Irish tax legislation. |
|
PRSI |
The lower employer PRSI rate was halved until end-December 2013. |
|
PRSI |
Abolition of employer PRSI on shared based remuneration. |
I should point out that some of the measures introduced in the Jobs Initiative were permanent such as the abolition of the employer PRSI on shared based remuneration. While others, such as the PRSI measure to halve the lower employer PRSI rate was a temporary measure and has reverted back to its previous level with effect from 1 January 2014. In addition, other measures have been retained. For example, the Deputy will be aware, that I announced in Budget 2014 the continuation of the 9% VAT rate for the tourism and hospitality sector. The decision to retain the 9% VAT rate for tourism services was in recognition of the importance of the tourism sector to the overall economy and as a major source of jobs. This initiative has proven to be a success, helping to create many new jobs, as well as protecting existing jobs. The cost to the Exchequer of this measure was estimated at the time of its introduction to be €350 million in a full year.
A stamp duty levy on pension fund assets was introduced in the Finance (No.2) Act 2011 as a measure to fund the Jobs Initiative. This was estimated to yield €470 million a year for 4 years. The Revenue Commissioners have advised me that receipts amounted to €463 million in 2011 and €483 million in 2012. This is broadly in line with the amounts anticipated to be collected in those years. €535 million was collected in 2013, due to an increase in the capital value of pension funds.
Furthermore, as the Deputy will be aware, in Budget 2014, I confirmed that the 0.6% pension levy introduced in the Jobs Initiative in 2011 will be abolished from 31 December 2014. However, I introduced an additional levy on pension funds at 0.15% in order to continue to help fund the Jobs Initiative and to make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties. The levy within the existing legal frame work will apply to pension fund assets in 2014 and 2015. It is estimated that the additional levy will yield €135 million in a full year.
I should also point out that the Jobs Initiative included a number of current and capital expenditure measures, among which there a number of measures aimed at retraining the workforce. The detail of these measures are a matter for my colleague the Minister for Public Expenditure and Reform, Mr. Brendan Howlin, T.D.
Notwithstanding the strong success of the Jobs Initiative, the Government decided that more could and should be done. To this end, the Government introduced the Actions Plan for Jobs and the Pathways to Work scheme in 2012. In effect, the Jobs Initiative has been subsumed into these two key annual Government Strategies.
63. Deputy Pearse Doherty asked the Minister for Finance the entry point at which a single PAYE worker starts to pay the standard rate of tax; the cost to the Exchequer of increasing that entry point by €500, €1,000, €1,500, €2,000, €2,500, respectively, per annum; and his plans to increase tax credits or create a new minimum entry point. [32040/14]
View answerI assume that the Deputy refers to the point at which a single PAYE worker starts to pay tax at the 41% rate, which is at incomes over €32,800. I also assume that the Deputy refers to an extension of the standard rate Income Tax band, which would apply similarly to widowed persons, married couples and civil partnerships. On this basis, I am informed by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2014 incomes, of increasing the standard rate tax band to the PAYE sector by €500, €1,000, €1,500, €2,000 and €2,500, while also maintaining the current monetary differences between the single persons standard rate band and the various other classes of tax bands, is as shown in a table.
|
Increase in Standard Rate Band |
Estimated Cost € million |
|
€500 |
74 |
|
€1,000 |
146 |
|
€1,500 |
217 |
|
€2,000 |
285 |
|
€2,500 |
352 |
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.
64. Deputy Pearse Doherty asked the Minister for Finance the revenue raised by vehicle registration tax for each of the past five years 2010, 2011, 2012, 2013 and to date in 2014. [32089/14]
View answer188. Deputy Denis Naughten asked the Minister for Finance the amount of vehicle registration tax collected on imported vehicles in 2012, 2013 and to date in 2014; and if he will make a statement on the matter. [32701/14]
View answerI propose to take Questions Nos. 64 and 188 together.
I am informed by the Revenue Commissioners that the revenue raised by Vehicle Registration Tax (VRT) from 2010 to June 2014 is as follows:
|
- |
€m |
|
2010 |
383.5 |
|
2011 |
388.4 |
|
2012 |
379.3 |
|
2013 |
437.3 |
|
2014 (6 Mths) |
344.4 |
It should be noted that the 2014 receipts are for the period January to June. These are provisional at this time and may be subject to revision.
I am advised by the Revenue Commissioners that the available information in respect of the amount of VRT on imported used vehicles for the years 2012, 2013 and the period 1 January to 30 June 2014 is as shown in a table.
|
Used Vehicles |
2012 |
2013 |
2014 (6 Mths) |
|
|
€m |
€m |
€m |
|
Cars |
86.7 |
120.9 |
70.3 |
|
Category B Car Derived Vans |
1.2 |
1.5 |
1.3 |
|
Category C Commercial Vehicles |
1.4 |
2.5 |
1.3 |
|
Category M Motor Cycles |
0.4 |
0.4 |
0.3 |
|
Total |
89.8 |
125.3 |
73.3 |
65. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer, the number of persons that will benefit and the average amount that would be saved for those in income brackets of €10,000-€20,000; €20,000-€30,000; €30,000-€40,000; €40,000-€50,000; €50,000-€60,000; €60,000-€70,000; €70,000-€80,000; €80,000-€90,000; €90,000-€100,000; €100,000-€150,000; €150,000-€200,000 and more than €200,000, by the reduction of the universal social charge by 0.5% and 1%, respectively, in each of the categories, 2%, 4% and 7%. [32138/14]
View answerI am advised by the Revenue Commissioners that the full year cost, estimated by reference to 2014 incomes, of reducing the 2%, 4% and 7% rates of Universal Social Charge (USC) by 0.5% and 1% is tentatively estimated to be of the order of €378 million and €756 million respectively.
The average benefit is not available but a breakdown of the number of beneficiaries by income range suggested by the Deputy is shown in the following table.
|
Range of Income from to |
Estimated Number Benefiting |
|
€10,000 to €20,000 |
353,500 |
|
€20,000 to €30,000 |
305,300 |
|
€30,000 to €40,000 |
240,900 |
|
€40,000 to €50,000 |
172,400 |
|
€50,000 to €60,000 |
118,500 |
|
€60,000 to €70,000 |
84,300 |
|
€70,000 to €80,000 |
59,500 |
|
€80,000 to €90,000 |
40,700 |
|
€ 90,000 to €100,000 |
27,900 |
|
€100,000 to €150,000 |
60,200 |
|
€150,000 to €200,000 |
16,800 |
|
Over €200,000 |
20,400 |
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.
66. Deputy Michael McGrath asked the Minister for Finance the Central Bank’s plans to progress the investigation into the mis-selling of payment protection insurance policies; the number of policies that have been reviewed at this point in time; if he will specify the timeframe the review covers; and if he will make a statement on the matter. [32186/14]
View answer167. Deputy Michael McGrath asked the Minister for Finance the position regarding the Central Bank of Ireland investigations into possible mis-selling of payment protection insurance by regulated entities; the scale of the problem; and when the investigation is due to be completed. [32673/14]
View answerI propose to take Questions Nos. 66 and 167 together.
Following the conclusion of its investigation, the Central Bank issued its Summary Report of the Payment Protection Insurance Review ( the PPI Review ) in March 2014. The PPI Review included the sales by 11 credit institutions from July 2007 and resulted in a refund figure of €67.4 million (including €4.9 million in interest) to consumer.
353,806 policies were within the scope of the PPI Review.
Credit institutions included in the PPI Review were required to demonstrate that their PPI sales were in compliance with the Consumer Protection Code. This included requirements to assess and evidence suitability and eligibility and to check that claims were not declined for reasons which the seller should have identified during the sales process. The 11 credit institutions in question no longer sell PPI.
A copy of the report is available on the Central Bank's website.
67. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the separate investigations currently under way or suspended at the Central Bank of Ireland into various issues arising from the banking crisis which crystalised in 2008; and if he will make a statement on the matter. [32187/14]
View answerNeither I nor my Department have any role in on-going Garda or other regulatory investigations into any Irish bank. However, I have been advised by the Central Bank that there are two such investigations in relation to issues arising from the banking crisis, of which one investigation is currently underway and one investigation is suspended.
In relation to the Irish Bank Resolution Corporation (IBRC) (formerly Anglo), I have been informed by the Central Bank that the investigation is currently suspended. The Gardaí informed the Central Bank in May 2011, following consultation with the Director of Public Prosecutions, that to proceed with the Central Bank's examinations at that time may prejudice any future criminal prosecutions. Accordingly, the Central Bank decided to defer its examination into IBRC. Given the seriousness and sensitivity of criminal proceedings and the strength of the sanctions available to the Gardaí and the Office of the Director of Corporate Enforcement (ODCE), the Central Bank considered this to be the most appropriate approach to take where there is a reasonable possibility of multiple proceedings. The Central Bank has informed me that it continues to keep this decision under review and regular liaison with the Gardaí and ODCE is continuing.
In relation to the Irish Nationwide Building Society (INBS), I have been informed by the Central Bank that the investigation is currently ongoing. An investigation is being conducted under the Central Bank's Administrative Sanctions Procedure into historic lending practices at INBS. Until this has concluded, no decisions may be made as regards any future potential action. For legal reasons, including the Central Bank's confidentiality obligations pursuant to section 33AK of the Central Bank Act 1942, no further details can presently be disclosed.
68. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of rent receivers appointed by each of the State-supported banks to date in 2013; and if he will make a statement on the matter. [32188/14]
View answer186. Deputy Michael McGrath asked the Minister for Finance if he will provide details, for each of the State-supported banks, the number of rent receivers appointed to date in respect of buy-to-let properties; the number of buy-to-let properties affected by such appointments; the number of rent receivers expected to be appointed over the remainder of 2014; if he will provide details of the operation of the rent receivers; the impact of the tenants concerned; his views on the appointment of rent receivers; and if he will make a statement on the matter. [32696/14]
View answerI propose to take Questions Nos. 68 and 186 together.
I have received the following information in relation to rent receivers:
AIB
AIB has appointed rent receivers for over 300 assets to date in 2014 of which c. 220 are buy to let. In total, AIB has c.1,300 assets under active rent receiver management of which c.1,050 are buy to let properties.
AIB cannot anticipate the number of receivers that will be appointed for the remainder of 2014 as it is dependent on borrower cooperation in reaching sustainable solutions. Rent receivers are usually appointed over assets where borrowers are in default and where the rent being generated from the asset is not being paid to the Bank in reduction of debt outstanding as contracted. The rent receiver collects the rent on behalf of the bank and seeks to maximise the value of the asset.
In relation to impact on tenants, the receiver may decide to sell the property with the tenant in situ or alternatively it may be sold with vacant possession. AIB ensures that the receiver acts in compliance with statutory duties and with all of the relevant laws and codes as they relate to private residential tenancies.
Permanent tsb
Permanent tsb has rent receivers appointed on 685 ptsb BTL units (353 accounts) and 173 CRE units (74 accounts). Appointments made since 1 January 2014 are 243 ptsb BTL units (140 accounts) and 8 CRE units (5 accounts). A receiver is appointed by the bank and operates as an agent of the borrower, collects rent from the tenant(s) and passes it to the bank, together with attending to any property related issues the tenant may have (in accordance with the Lease Agreement). It is almost always ptsb's desire that the existing tenant(s), provided they are paying rent, remain in the property.
In the case of Bank of Ireland the Bank has provided information in relation to rent receivers in its Annual Report for the year ended 31 December 2013 which can be found at: http://www.bankofireland.com/fs/doc/wysiwyg/bank-of-ireland-annual-report-for-the-year-ended-31-december-2013.pdf
69. Deputy Michael McGrath asked the Minister for Finance if his Department has been in contact with the UK Treasury in relation to the UK Government’s review of Ulster Bank’s parent company, Royal Bank of Scotland; if so, the position of the Irish Government on the issue; and if he will make a statement on the matter. [32189/14]
View answerIn Autumn 2013, following a review of its operations by the UK Treasury, Royal Bank of Scotland reaffirmed its commitment to the Irish market. As part of that process, Treasury officials engaged with officials from my Department. As part of its strategic review process, RBS announced plans in late 2013 to accelerate the deleveraging of assets contained in RBS Capital Resolution, a material amount of which are assets held by Ulster Bank.
In February 2014, I met with RBS executives to ascertain their outlook for Ulster Bank. RBS is currently reviewing the operations of Ulster Bank in Ireland with a view to creating a sustainable business model. On 27 February 2014, RBS re-iterated its commitment to the Irish market.
It is good news that the bank has committed so firmly to the Irish market. Officials in my Department have been in contact with both RBS and Ulster Bank officials and this will continue as the bank finalises its plans for the future.
70. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number and total value of rent reductions approved by the National Asset Management Agency, NAMA, to tenants who hold leases in respect of NAMA properties; the procedure involved; and if he will make a statement on the matter. [32190/14]
View answer133. Deputy Michael McGrath asked the Minister for Finance the number of rent reductions that have been approved by the National Asset Management Agency; the number of applications currently outstanding; and if he will make a statement on the matter. [32484/14]
View answerI propose to take Questions Nos. 70 and 133 together.
I am advised by NAMA that, to date, it has received 338 eligible applications for rent abatement through its debtors and receivers. Of these 293 applications have been approved, 35 are currently being assessed and 10 have been refused. The aggregate annual value of approved rent abatements approved to date is €19m. NAMA has also granted long-term rent reliefs with a value in excess of €40m. I am advised by NAMA that tenants wishing to make an application for rent abatement through their landlord, where that landlord is a NAMA debtor or Receiver and the relevant property is security to a NAMA loan, should consult the NAMA Guidance Note on Upwards Only Rent Reviews, which sets out the process involved. The Guidance Note in available on the NAMA website, www.nama.ie.
71. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of legal proceedings that Irish Bank Resolution Corporation, in special liquidation, is currently a party to; the number of different law firms representing IBRC in these cases; the anticipated amount to be spent in the current year on legal costs; and if he will make a statement on the matter. [32191/14]
View answerI am advised by the Special Liquidators that in July 2012, following a process conducted in accordance with best practice, IBRC put in place a revised formal legal panel of Irish law firms, with a central part of this process being a reduction in legal fees charged to IBRC. I am advised by the Special Liquidators that this legal panel is diverse in terms of the size and scale of firms that are panel members and also includes a geographical spread. In continuing to deal with the multitude of unprecedented, exceptional and novel issues and challenges faced as a result of the Special Liquidation, the Special Liquidators, as a matter of prudential and commercial control and oversight, require all necessary and appropriate legal and professional advice, however, they remain extremely mindful of the imperative to reduce expenditure on legal fees.
I am advised by the Special Liquidators that they are currently managing more than 1,100 legal cases, however due to commercial confidentiality and sensitivities, the Special Liquidators are unable to provide any further breakdown of the type requested. All relevant disclosures in respect of legal cases involving IBRC are publically available through the Courts Services website.
72. Deputy Michael McGrath asked the Minister for Finance if he will provide his Department's estimate, including a breakdown, of the number of residential mortgages here currently held by entities not regulated by the Central Bank of Ireland and which therefore do not have the statutory protection of the code of conduct on mortgage arrears; and if he will make a statement on the matter. [32194/14]
View answerDetails of the numbers of mortgages sold are considered commercially sensitive by the financial institutions involved. However, information from company announcements in the public domain, would suggest that between 5,000 and 10,000 mortgages in total have been sold to unregulated entities in recent years.
The Deputy will be aware that the Government intends to bring forward legislation to ensure that, where a regulated financial entity sells its loan book to an unregulated entity, the protections afforded under the Central Bank codes will continue to apply. My officials are working with the Office of the Attorney General and the Central Bank on the draft 'Consumer Protection on the Sale of Loan Books Bill'; a public consultation process on the legislative proposals will commence shortly.
73. Deputy Terence Flanagan asked the Minister for Finance his plans to allow private pension holders to draw down a portion of their pension funds in tax-free lump sums at the age of 50 years; and if he will make a statement on the matter. [32198/14]
View answerThere are a number of reasons why, under existing policies, pre-retirement access to the main benefits from pension plans or schemes is not permitted, the principal one being that these arrangements (and the associated tax reliefs on contributions and pension fund growth that are available to encourage them) are designed to be long term savings vehicles based on the principle that the benefits will be locked away to help fund an adequate income in retirement.
Retirement lump sums can be taken tax-free at retirement up to a life-time limit of €200,000. It is not clear from the question whether the tax-free lump sum the Deputy envisages is all or part of an individual s retirement lump sum or whether it is simply a proportion of the individual s overall pension fund at the point of drawdown. Neither is it evident what if any limits would apply to the lump sum that could be drawn down early or the conditions that would attach to such a facility.
In any event, the tax-free retirement lump sum is a significant part of an individual s core retirement benefits which is generally only available in pension schemes approved by the Revenue Commissioners at normal retirement age although Revenue approval may also provide for voluntary early retirement from age 50 where scheme rules allow and with the employer s consent. In such situations, however, retirement benefits would be restricted.
For many individuals with limited pension savings the tax-free lump sum may well be the major pension benefit at retirement. In my view, it is preferable not to encourage early withdrawals of core pension benefits of whatever kind, as the inevitable result is to divert the savings initially intended to finance retirement to meet short term financial crises. This clearly poses retirement income adequacy issues and, in that regard, the impact of the early withdrawal of pension savings on the ultimate value of the pension pot at retirement should not be underestimated. Allowing access to all, or even to a proportion, of an individual s retirement lump sum before retirement would undermine core benefits in the long term to the detriment of the individual in his retirement years.
As to the economic benefit of an early access scheme, in other jurisdictions where pre-retirement access to pension savings have been allowed (e.g. Denmark and Iceland), there are doubts about the extent to which the gains in consumption have been attributable to the schemes in those countries.
I gave consideration to all of these issues in my decision to introduce Section 782A of the Taxes Consolidation Act 1997 which provides members of occupational pension schemes with a once-off opportunity to access their Additional Voluntary Contributions (AVCs), pre-retirement. The option is available for a three year period from 27 March 2013, the date that the Finance Act 2013 was passed into law.
The pre-retirement access to a portion of AVCs which I introduced in Budget and Finance Act 2013 is allowed on a tax-neutral basis the contributions were tax-relieved at the individual s marginal rate on the way in and are taxed at the individual s marginal rate on withdrawal. The take-up of the measure to date has not been particularly significant. The measure is, however, designed to enable rather than incentivise individuals to access part of their pension savings beyond their regular or compulsory pension contributions. It is important that individuals continue to provide for their retirement and, it would appear, most individuals with AVCs have to date decided to preserve their AVC pension savings. For these various reasons, I have no plans to extend pre-retirement access to pension savings beyond what is provided for in relation to AVCs.
74. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the current estimate by the joint administrators of a company (details supplied) of the losses at the former company; if he will further provide details of the role of the Insurance Compensation Fund in dealing with this issue; the amount that has been collected to date from the 2% insurance levy introduced since 1 January 2012; the timeframe the levy is likely to have to remain in place; and if he will make a statement on the matter. [32209/14]
View answer169. Deputy Michael McGrath asked the Minister for Finance the estimated cost of winding down Quinn Insurance; and if he will make a statement on the matter. [32675/14]
View answerI propose to take Questions Nos. 74 and 169 together.
The Insurance Compensation Fund (ICF) levy being applied to home, motor and commercial insurance, and which came into effect from 1 January 2012, operates under the Insurance Act 1964. Its purpose is to protect policy holders in the event of their insurer becoming insolvent. The funds are collected by the Revenue Commissioners and transferred to the ICF on a monthly basis. Since the reintroduction of the ICF levy in January 2012 approximately €142.8m was collected.
In 2010 Joint Administrators were appointed by the High Court at the request of the Central Bank of Ireland because of concerns about the solvency position of Quinn Insurance Limited (QIL). The ICF has been used in accordance with the legislation to allow the QIL Administrators to meet their financial obligations as they arise. High Court approval is required to be obtained by QIL Administrators each time before any funds can be withdrawn from the ICF. To date, a total of €1,118m has been drawn down from the Insurance Compensation Fund by the Joint Administrators.
The Joint Administrators, when presenting their 10th report to the High Court in July 2012, indicated that the potential call on the ICF could be up to €1.65bn. The Joint Administrators pointed out in their report that if they were to remove most of the accounting adjustments and use a "best estimate" calculation, then the losses at the former company and therefore the call on the fund is likely to be in the range of €1.1bn to €1.3bn rather than the €1.65bn for which they have provided.
The latest update from the Joint Administrators to officials from my Department indicates that they are increasingly confident that the total drawdown will be in that lower range.
Under Section 6 of the Insurance Act 1964 the responsibility for deciding whether the ICF has sufficient funds available to it at any particular time is a matter for the Central Bank. Where, in the Bank's opinion, the state of the Fund is such that financial support should be provided for it, it determines an appropriate contribution to be paid to it by each insurer calculated as a percentage, not exceeding 2% of the aggregate of the gross premiums paid to that insurer in respect of policies issued in respect of risks in the State.
The Central Bank have advised me that, it is not anticipated that there will be a change in the levy of 2% in the short to medium term.
75. Deputy Sean Fleming asked the Minister for Finance when a tax rebate will be issued to a person (details supplied) in County Laois; and if he will make a statement on the matter. [32224/14]
View answerI am advised by the Revenue Commissioners that the tax rebate for the named individual has been approved and will issue shortly.
The Revenue Commissioners wish to apologise for the delay in processing this rebate.
76. Deputy Sean Fleming asked the Minister for Finance the number of agencies or State bodies under the aegis of his Department that have been abolished since 2011; and if he will make a statement on the matter. [32240/14]
View answerIn response to the Deputy's question no State agencies or public bodies under the aegis of my Department have been abolished in the period since 2011.
However, it is expected the National Treasury Management Agency (Amendment) Bill 2014 will be enacted shortly which, inter alia, proposes to simplify and streamline NTMA governance structures.
The NTMA was set up to manage the National Debt in 1990 and has taken on a range of additional functions since then. Some of these functions were established as legal entities that were distinct from the Agency but which operated through it (e.g., the National Development Finance Agency (NDFA) and the National Pensions Reserve Fund (NPRF).
The new simpler structure that is being proposed involves these activities being assigned directly to the Agency under the direction of a new over-arching Board which will be responsible to the Minister for Finance. No changes are proposed to the existing arrangements in respect of NAMA which will continue to have its own board.
The approach proposed is in line with the Government's commitment in the area of the rationalisation of State bodies.
77. Deputy Sean Fleming asked the Minister for Finance the number of new agencies or State bodies that have been established under the aegis of his Department since 2011; and if he will make a statement on the matter. [32255/14]
View answerIn response to the Deputy's question details in respect of the bodies established under the aegis of my Department since March 2011 are contained in a table:
Details of bodies established since 09 th March 2011
|
Name of Body |
Date Established |
|
Credit Union Restructuring Board (ReBo) |
1 January 2013 |
|
Irish Fiscal Advisory Council |
07 July 2011 |
|
New Economy and Recovery Authority (NewERA) |
In September 2011 the Government announced the establishment of the New Economy and Recovery Authority (NewERA), initially on a non-statutory basis, within the National Treasury Management Agency (NTMA).
Legislation to put NewERA on a statutory footing is expected to be enacted in 2014.
|
78. Deputy Sean Fleming asked the Minister for Finance the total value of bonus payments made to staff under the aegis of his Department in 2013 and to date in 2014; and if he will make a statement on the matter. [32270/14]
View answerIn response to the Deputy's question I have been informed by The National Treasury Management Agency (NTMA) that they made performance-related payments to 11 staff in respect of 2013. These payments, in aggregate, totalled €76,500.
79. Deputy Brendan Griffin asked the Minister for Finance if he will consider reviewing the rate of DIRT tax to incentivise persons to invest; and if he will make a statement on the matter. [32281/14]
View answerIt is the standard practice for the Minister for Finance to review taxation policy in the run up to the annual Budget. It is also a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that could be the subject of Budget decisions
However, speaking generally, the Government decided to increase the rate of Deposit Interest Retention Tax (DIRT) (previously 33%) to 41% in Budget 2014. The higher rate of DIRT (previously 36%) for interest paid less frequently than annually was abolished, and all deposit interest is now liable to DIRT at the same rate (41%).
Exemptions from DIRT may apply for the following persons in certain circumstances -
- Individuals aged over 65 (subject to income limits)
- Permanently Incapacitated Individuals
- Companies, Pension Funds and Charities (Irish resident companies pay tax on investment income at 25%)
- Non-Resident Account Holders
There are alternative savings products available which are tax free (Savings Bonds, Saving Certificates, Instalment Savings and the National Solidarity Bonds).
The decision to raise the rate of DIRT in Budget 2014 was taken to encourage spending in the economy, with a view to stimulating growth and employment and to raise additional revenues.
80. Deputy Pearse Doherty asked the Minister for Finance if he will provide details of any breach of physical security at Central Bank of Ireland buildings in the past two years [32291/14]
View answerThe responsibility for operational and security polices at the Central Bank is a matter for the Central Bank Commission and the Governor of the Central Bank. As a matter of course the Central Bank does not comment on security issues pertaining to the organisation, its premises, assets or personnel. I have however been informed by the Central Bank that all aspects of security infrastructure, policies and procedures are continuously reviewed and assessed to ensure they are appropriate to the risk profile.
81. Deputy Seán Ó Fearghaíl asked the Minister for Finance the total number of appointments to State boards since March 2011 under the aegis of his Department; the total number of appointments that have been advertised on his Department’s website; and if he will make a statement on the matter. [32300/14]
View answerIn response to the Deputy's question since March 2011 some 53 appointments or reappointments were made to boards of bodies under the aegis of my Department. With the exception of Fiscal Advisory Council and the reappointment of board members of Financial Services Ombudsman's Council vacancies on other boards under the aegis my Department were advertised on the Department's website.
Details of the number of appointments or reappointments made in the period since March 2011 are contained in a table:
|
Name of Body |
Number of appointments / re-appointments made since March 2011 |
Comment |
|
Board of the National Development Finance Agency |
4 |
3 of the vacancies which were filled were advertised on the websites of the Department of Finance and the Department of Public Expenditure and Reform.
Two members were appointed on the basis of Curriculum vitae and two were ex-officio appointments. |
|
National Treasury Management Advisory Committee |
3 |
It has been the norm to appoint the Secretary General of the Department of Finance to the Advisory Committee since the Establishment of the National Treasury Management Agency
There was one reappointment to the Advisory Committee.
The other position was advertised publically on the Department of Finance website. The position was not filled from the process. |
|
State Claims Agency Policy Committee |
5 |
Two members were appointed on the basis of Curriculum vitae. A notice requesting expressions of interest was published on the D/Finance and D/PER websites on 1 June 2012. There was one re-appointment.
By convention, the Department of Health has had a representative on the State Claims Agency Policy Committee. There were two Department of Health appointments within the period; an initial appointment and a replacement following their retirement and resignation from the post.
|
|
National Pensions Reserve Fund |
2 |
There were 2 re-appointments in the period |
|
National Asset Management Agency |
5 |
Expressions of interest were sought in 2012 for a panel of candidates to fill any upcoming vacancies on the Board. To date all appointments to the NAMA Board have been Ministerial appointments, no board members have been appointed from the expressions of interest sought in 2012.
|
|
Credit Union Restructuring Board (Rebo) |
13 (Inclusive of Chairman) |
The Credit Union Restructuring Board (ReBo) comprises thirteen members in total, including six independent members. To identify suitable independent members the Department publicly advertised for expressions of interest on the Department of Finance and the Public Appointments Service websites. Nominations were also invited from credit union representative bodies, the Central Bank of Ireland and the Department of Finance. The Minister also appointed Mr Joe O'Toole to ReBo for continuity purposes as Mr O'Toole was a member of the Commission on Credit Unions. Six appointments were made from those who submitted a curriculum vitae including the appointment of the Chair. One person has recently resigned from the Board of ReBo, however, there are no plans to fill the vacancy at this time.
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|
Fiscal Advisory Council |
5 |
As Minister for Finance I announced the establishment of the Irish Fiscal Advisory Council on a non-statutory basis on 7 July 2011. I appointed the Council members having regard to a number of criteria including the desirability of having a mix of appropriate backgrounds (academia, the financial sector/financial markets and public finance), macroeconomic/microeconomic expertise and a strong international dimension, as well as the need to take gender considerations into account. I am satisfied that the appointed members have the mix of skills and experience, including in relation to fiscal affairs, to ensure that the Council will be highly effective in fulfilling its mandate. The Fiscal Responsibility Act 2012 was brought into legislative effect on 27th November 2012. The Council commenced on a statutory basis from the 31st December 2012. The membership remain the same as above.
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|
Financial Services Ombudsman's Council |
7 |
Financial Services Ombudsman Council was reappointed for a 2 year term up to 28th October 2015 or until the merger of the Financial Services Ombudsman with the Pension Ombudsman has been completed, whichever is the sooner.
In view of the short term of the Council and the amalgamation of the Offices of the Pension Ombudsman and the Financial Services Ombudsman which will require the experience of the existing Council to effect, these positions were not advertised. The appointment of an additional person with specific legal qualifications and experience was also required.
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|
Irish Financial Services Appeals Tribunal |
7 |
No vacancies have arisen other than in respect of Tribunal members coming to the end of their term of appointment as set out in legislation. All vacancies were advertised on Publicjobs.ie and the Department of Finance website. Three appointments were made as result of the publically advertised positions. |
|
Central Bank Commission |
2 |
There was one re-appointment in the period. The other position was filled from a public advertisement process, which included an advertisement on the Department of Finance website. |
82. Deputy Seán Ó Fearghaíl asked the Minister for Finance the number of chairpersons appointed to State boards under the aegis of his Department since March 2011 that have appeared before the relevant joint Oireachtas committee; and if he will make a statement on the matter. [32315/14]
View answerIn response to the Deputy's question in 2011 the Government introduced new arrangements for the appointment of State Board members. Since March 2011, there has been 5 appointments of chairpersons to State boards under the aegis of my Department. While the proposed appointees are required to make themselves available to the appropriate Oireachtas Committee, the appointees listed in the table following did not appear before an Oireachtas Committee.
Chairpersons appointed since March 2011
|
Name |
Appointed |
Board |
|
Professor John McHale |
07 July 2012 |
Irish Fiscal Advisory Council |
|
Dr Noel Whelan |
01 July 2012 |
State Claims Agency Policy Advisory Committee |
|
Mr Bobby McVeigh |
10 September 2012 |
Credit Union Restructuring Board (ReBo) |
|
Mr Dermot Jewell |
17 October 2013 |
Financial Services Ombudsman Committee |
|
Mr Willie Walsh |
11 November 2013 |
NTMA Advisory Committee |
83. Deputy Seán Ó Fearghaíl asked the Minister for Finance the number of retired public servants who have been awarded temporary or term-time posts in his Department in 2011, 2012, 2013 and to date in 2014. [32330/14]
View answerInformation regarding the number of retired public servants who have been re-hired is detailed in the Appropriation Accounts. The Appropriation Accounts are available online at www.audgen.gov.ie. In my Department, one former staff member is providing contractual services to this Department and is paid at a per diem rate. This Department does not fill any posts vacated as a result of employees availing of term time (now called the Shorter Working Year Scheme).
84. Deputy Brendan Griffin asked the Minister for Finance his views that a bank (details supplied) in County Kerry is treating a person fairly following recent representations by this Deputy to his Department; if there has been any progress on this case [32341/14]
View answerThe financial institution concerned has informed me that it has been dealing with this matter for a number of years and that further detail regarding the specifics of this case were posted by the financial institution to Mr Brendan Griffin TD last Friday 11th July 2014 (under customer consent), prior to receipt of this parliamentary question on 15th July 2014. The financial institution concerned will continue to engage with the Deputy with regards to any further queries which may arise post receipt of the letter.
85. Deputy Brendan Griffin asked the Minister for Finance if he will reconsider reducing the rate of VAT payable by ice cream parlours to 9% in recognition of the labour intensive nature of the business and the heavy dependency that such businesses have on tourism; and if he will make a statement on the matter. [32356/14]
View answerThe standard rate of VAT, currently 23%, applies to the sale of ice-cream, as it does to most confectionery and sugary foods. In this respect, ice-cream parlours selling ice cream to customers must charge the 23% rate on the supply of ice-cream.
However, where ice-cream is provided as part of a meal by a caterer, such as a restaurant, the meal, including the ice-cream element, is liable to VAT at the 9% reduced rate.
A reduction in the VAT rate on ice-cream would lead to pressure to apply a similar reduction to the wider confectionary and sugary foods area which would be not only be costly to the Exchequer, but would be inadvisable from a health perspective. I therefore have no plans to change the VAT treatment of ice-cream sold by ice-cream parlours.
86. Deputy Brendan Griffin asked the Minister for Finance if illegal trade in counterfeit and illicit alcohol, cigarettes, fuel, CDs and DVDs will be included in overall GDP figures, if so, the impact their inclusion will have; and if he will make a statement on the matter. [32372/14]
View answer87. Deputy Brendan Griffin asked the Minister for Finance if black market construction activity will be included in overall GDP figures; if so, the impact the inclusion will have; and if he will make a statement on the matter. [32373/14]
View answerI propose to take Questions Nos. 86 and 87 together.
There are considerable challenges facing the Central Statistics Office (CSO) in accurately measuring illicit activities, for obvious reasons. I am informed by the CSO that statisticians use any available data that can produce a repeatable, consistent estimate for these activities over time. The fact that they are illegal makes them particularly difficult to estimate as the actors involved are operating outside of the law and consequently outside of any regulatory or official systems. Consequently, the estimation methods used can only be expected to deliver approximations of the actual levels of activity.
The extension of the coverage of illegal activities in Ireland's most recent GDP estimates related only to prostitution and aspects of the drugs trade.
Estimates for fuel and cigarette smuggling have been included for several years. I am also informed by the CSO that estimates of unrecorded construction activity have been included in the GDP estimates for Ireland for many years. Other items such as sales of counterfeit CDs and DVDs are estimated using the Household Budget Survey as a basis for estimating the overall demand for these products. Consequently, there is no particular impact on the latest estimates of GDP.
88. Deputy Catherine Murphy asked the Minister for Finance when the results of the household finance and consumption survey will be available; if these data will be of any practical use to his Department in terms of formulating tax policy; his plans to use the data to this end; and if he will make a statement on the matter. [32387/14]
View answerQuestions in relation to the compilation of statistics by the CSO can be directed to the Taoiseach/Department of the Taoiseach. I am advised that the Household Finance and Consumption Survey (HFCS) is a household survey conducted by the Central Statistics Office as part of a programme of similar surveys in Eurozone countries. I understand that the results of this survey are not yet available for Ireland. The main aim of the HFCS is to provide structural information on households' assets and liabilities, based on a representative sample of households. This will address gaps in knowledge about the economic well-being of households, the distribution and type of wealth and liabilities among households and individuals, as well as the factors that affect financial planning by households and individuals. Such information may be relevant to the formulation of tax policy and I look forward to seeing the results of the HFCS.
89. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will provide in tabular format the commitments under the programme for Government for which his Department is responsible; the progress made to date with regard to each commitment; and if he will make a statement on the matter. [32395/14]
View answerThe full list of the Programme for Government commitments that come under the remit of the Department of Finance is set out in the Statement of Strategy 2011-2014 which is available on my Department's website. Each year the Department of the Taoiseach, in conjunction with all Government Departments, publishes a report setting out progress made on the implementation of the Programme for Government. The third annual report was published on 4 March, and sets out in detail the substantial work carried out right across all of Government. A copy of this report can also be accessed on the Department of the Taoiseach's website. That report sets out the progress made in implementing the commitments under my Departments remit.
90. Deputy Michael McGrath asked the Minister for Finance the current book value and estimated market value of the loan assets currently held by the National Asset Management Agency, NAMA; if he will provide a breakdown by geographic area, for example, Ireland, UK and so on; if a decision has been made to accelerate the disposal of the NAMA assets; and if he will make a statement on the matter. [32421/14]
View answer91. Deputy Michael McGrath asked the Minister for Finance if he has given a direction to the National Asset Management Agency to accelerate the disposal of its remaining loan assets; and if he will make a statement on the matter. [32422/14]
View answerI propose to take Questions Nos. 90 and 91 together.
I have been advised by NAMA that the carrying value of its loan assets at 31 March as disclosed in the Q1, s.55 Report and Accounts is €27bn, including €8.7bn outstanding in respect the IBRC loan facility deed and floating charge. NAMA publishes the estimated market value of its loan assets and a breakdown of its portfolio by geography and sector on an annual basis as part of its annual report and accounts. The most recent market value of its loan assets and breakdown of its loan portfolio is provided in its Annual Report and Financial Statements for 2013, which was published in May, 2014 and is available on the NAMA website, www.nama.ie. The s.227 Review of NAMA to which the Deputy refers in his question was published on 16 July and is available on the Department of Finance website , www.finance.gov.ie.
As the Deputy will be aware my officials have recently completed their review of NAMA under Section 227 of the NAMA Act. The review concluded that NAMA had made significant progress to date and is well positioned to achieve its objectives and so continues to be necessary.
The Strategy which NAMA adopts in pursuing its objectives is primarily a matter for the NAMA Board however in the context of the NAMA Review, the Department, in consultation with the Board and Management of NAMA, also considered various strategic alternatives that may or may not facilitate NAMA achieving and ideally surpassing its objectives. Following this consideration the NAMA board has committed:
- To redeem a minimum of 80% of its senior debt by the end of 2016, a full two years ahead of schedule, and to accelerate redemptions beyond that target if possible;
- To ensure the timely and coherent delivery of key Grade A office space, retail and residential space within the Dublin Docklands strategic development zone and Dublin's Central Business District; and
- To maximize the delivery of residential housing units in areas of most need.
This being the case I have not issued a direction order to NAMA.
The NAMA Section 227 Review is available in the Oireachtas Library and on the Department of Finance website.
92. Deputy Michael McGrath asked the Minister for Finance if he will provide a detailed list of each of the legal cases the National Asset Management Agency is currently a party to; and if he will make a statement on the matter. [32423/14]
View answerNAMA has a statutory obligation to report on proceedings commenced by it in each quarter and this information is contained in the published s55 reports from 2010 to date. All s55 reports are available on the NAMA web site, www.nama.ie.
NAMA is currently party to a number of proceedings initiated against it and details of these proceedings are as follows:
|
Title |
Parties to Proceedings |
Relief sought against NAMA or NAMA group entity |
|
Circuit Court 6405/2012 |
Liam and Bernadette Kelly v- Sammark Property Limited and NALM and NAMA |
Injunction requiring NAMA to complete certain works, damages, interest and costs |
|
High Court 2012/13015P |
Moira McNamara v- NAMA and NALM |
Injunction |
|
High Court 2013/1661P |
Leona Flynn v. NALM |
Declaratory orders |
|
High Court 2013/2364P |
Tailored Homes (Irl) Limited and Michael Taggart v. IBRC (in liquidation), NALM and Michael McAteer (Statutory Receiver) |
Declaratory Orders, Damages for breach of contract and/or breach of duty (including statutory duty) and Order removing Statutory Receiver |
|
High Court No 2013/4252P |
Patrick McKillen v NAMA |
Damages for: (i) alleged breach of privacy; (ii) alleged breach of confidence; and (iii) alleged breach of section 221 of the NAMA Act. |
|
United States District Court SDNY 13 CV 09035 |
John Flynn Senior, Leona Flynn, John Flynn Junior, Elaine Flynn and 26 others v Irish Bank Resolution Corporation (f/k/a/ Anglo Irish Bank Corporation plc), National Asset Management Agency, Tiarnan O'Mahoney, Arthur Michael Royal Aynsley, KPMG LLP and Brendan McDonagh, Frank Daly and other named NAMA employees |
The rescission of loan contracts, the rescission of all personal guarantees and damages. |
|
High Court 2013/1008P 2013/1019P |
12 sets of proceedings issued by the following Plaintiffs (Bernard McCarthy, John and Catherine Ryan, Micheal Ryan, Paul O'Brien, Anthony and Victoria Treacy, Joseph Whelan, Robert and Geraldine Ryan, Robert Patrick Ryan, Robert and John Ryan) against various Oceanico Companies, IBRC and NAMA. |
Return of deposit monies |
|
High Court 2013 No 6907P |
Geraldine Grehan v Geoff Carton-Kelly, George Maloney, AIB, Michael McAteer, Paul McCann and NALM |
Declaratory Orders |
|
Supreme Court of the State of New York 157380/2013 |
Geraldine Grehan v. NALM |
Stay on the sale by the Sheriff of the City of New York of 19E Centria Building, 18 West 48th Street, New York and Recognition that Geraldine Grehan has an interest in the property. |
|
Dublin Circuit Court No 477/2013 |
Deborah Dunne -v- Martin Dunne, IBRC Ltd and NALM |
Declaratory Orders |
|
High Court 2013/6893 P |
Marion Frawley v NAMA |
Declaratory Orders |
|
High Court No 2014/918P |
Donall Dooley v NAMA and NALM |
Damages for breach of confidentiality |
|
High Court - no record number on Motion or Affidavit |
William Kavanagh -v- NALM |
Directions under POA Act 1996 |
|
High Court 2013/14051P |
NALM -v- David Cullen, Mary Cullen, Seafield Hotel Limited, Paramount Hotel Limited, Fintan Wallis and Stephen Cullen |
Counterclaim against NALM in proceeding brought by NALM |
|
High Court 2014/2799P |
Carol Morrissey and John Morrisey v NAMA, Capita Asset Services (Ireland) Limited, Minister for Finance, Ireland and the Attorney General. |
Breach of constitutional rights in appointment of receivers, damages |
|
High Court 2014/99 JR |
Thomas McEvaddy Senior and Thomas McEvaddy Developments Limited -v- NAMA, NALM, IBRC (inSL) Eoin Ryan as Receiver, Ireland and the AG. |
Various declarations including a declaration NALM is not entitled to rely on the security it acquired from IBRC |
|
High Court 2014 3030P |
Oliver Caffrey -v- William O'Riordan and Declan McDonald (as receivers of Swinwood Ltd) and NALM. [NALM joined as parties on 8 April 2014] |
Damages. |
|
High Court 2014 3792P |
Anne Coughlan -v- NALM |
Damages |
|
High Court 2014/3863P |
Anne Connolly V. NAMA and NALM and BOI and Terence Connolly |
Declaratory Orders |
|
High Court No 2014 5261P |
Henry A. Crosbie v- NAMA and NALM |
Declaratory relief, injunction and damages |
|
High Court 2014 No 1125P |
Jean Gilson v Slievenaman Developments Ltd, Keel Properties Ltd, Dundalk Town Council, First Trust Bank, NAMA, Terence O'Hanlon, Ciaran O'Hare, William Kennedy, Joe Anderson and Joyce Roderick. |
Damages |
93. Deputy Michael McGrath asked the Minister for Finance if the Government statement of Friday, 11 July 2014 committing to a reduction in the 52% tax rate on low and middle income earners means that a decision has been taken to reduce the actual marginal rate of tax in budget 2015; and if he will make a statement on the matter. [32424/14]
View answerThe Deputy will be aware that the Statement of Priorities issued by the Government contains a commitment that we will announce, in Budget 2015, a tax reform plan to be delivered over a number of budgets, to reduce the 52% marginal tax rate on low and middle-income earners, in a manner that maintains the highly progressive nature of the Irish tax system.
As such, a decision has not been made to date, to reduce the marginal rate of tax. However, I am on record as stating my belief that income tax is too high in Ireland and that it is my intention to reduce it when the public finances allow me to do so.
In keeping with normal practice, I have no intention of setting out changes to the tax system in advance of the Budget. However, my officials will model and examine potential options for changes to the tax system for my consideration as part of the overall Budget process.
