Written Answers Nos. 70-75
70. Deputy Catherine Murphy asked the Minister for Finance the number of housing associations that have taken advantage of the National Asset Management Agency facility to set up a greater supply of housing; the number properties that have been transferred, broken down by local authority area; the costs incurred in the set up and operation of the special-purpose vehicle to date; and if he will make a statement on the matter. [37543/14]
View answerNAMA has, to date, made 5,455 houses and apartments, one third of the completed housing stock held by its debtors and receivers in Ireland, available through the Housing Agency to local authorities and approved housing bodies for social housing. This is almost all of the unoccupied housing stock under NAMA's control. Of the 5,455 properties made available by NAMA, local authorities have confirmed demand for just over 2,000. At end Q2 2014, 736 of the 2,000 properties for which demand has been confirmed by local authorities had been delivered. Once demand is confirmed by local authorities and contracts have been entered into by either local authorities or approved housing bodies, the properties are made immediately available by NAMA, which often involves significant investment by the NAMA to complete outstanding construction work and to address compliance issues. NAMA has, to date, invested €20 million in this way to facilitate the delivery of social housing through this initiative. Details relating to these properties, including the details sought by the Deputy, are available through both the Housing Agency (www.housing.ie) and NAMA (http://www.nama.ie/about-our-work/social-housing/) websites. The figures for Quarter 3 2014 are currently being finalised and will be published within the coming weeks on both websites.
For the Deputy's convenience a breakdown of the delivered units by local authority area and local authority/approved housing body is included in the following table.
Delivery of social housing through NAMA
|
Carlow |
Respond! Housing Association |
55 |
|
Clare |
Banner Housing Association |
3 |
|
Cork |
NABCO (NARPS) |
13 |
|
Cork |
Cork City Council |
53 |
|
Cork |
Clúid Housing Association (NARPS) |
23 |
|
Cork |
Clúid Housing Association |
1 |
|
Cork |
Túath Housing (NARPS) |
12 |
|
Dublin |
Clúid Housing Association |
58 |
|
Dublin |
Circle Voluntary Housing Association |
7 |
|
Dublin |
Clúid Housing Association |
28 |
|
Dublin |
Clúid Housing Association |
40 |
|
Dublin |
HAIL Housing Association |
5 |
|
Dublin |
Fingal County Council |
10 |
|
Dublin |
HAIL Housing Association |
3 |
|
Dublin |
Fingal County Council |
6 |
|
Dublin |
Túath Housing |
20 |
|
Dublin |
Túath Housing (NARPS) |
20 |
|
Galway |
Clúid Housing Association |
13 |
|
Galway |
Túath Housing |
13 |
|
Galway |
Galway City Council |
7 |
|
Galway |
Galway City Council |
15 |
|
Galway |
Brothers of Charity |
1 |
|
Kerry |
Clúid Housing Association |
15 |
|
Kildare |
Túath Housing |
10 |
|
Kildare |
Clúid Housing Association |
35 |
|
Kildare |
Kildare County Council |
8 |
|
Kildare |
Túath Housing |
4 |
|
Kildare |
Túath Housing |
7 |
|
Limerick |
Focus Ireland |
4 |
|
Limerick |
Clúid Housing Association |
5 |
|
Louth |
Túath Housing |
15 |
|
Louth |
Drogheda Borough Council |
12 |
|
Westmeath |
Túath Housing |
4 |
|
Westmeath |
Túath Housing (NARPS) |
4 |
|
Wexford |
Wexford County Council |
2 |
|
Clare |
Banner Housing Association |
4 |
|
Cork |
NABCO (NARPS) |
24 |
|
Cork |
Túath Housing |
6 |
|
Cork |
NABCO (NARPS) |
8 |
|
Dublin |
Clanmil Housing (NARPS) |
8 |
|
Dublin |
Circle Voluntary Housing Association (NARPS) |
60 |
|
Dublin |
Túath Housing (NARPS) |
48 |
|
Dublin |
HAIL Housing Association (NARPS) |
19 |
|
Galway |
Túath Housing |
12 |
|
Kilkenny |
Kilkenny County Council |
5 |
|
Meath |
North & East Housing Association |
11 |
|
Total |
736 |
As the Deputy is aware, NAMA has established a special purpose vehicle, National Asset Residential Property Services Ltd. (NARPS), to expedite the delivery of social housing through this initiative. Through NARPS, NAMA acquires houses and apartments from debtors and receivers and directly leases them to approved housing bodies under long-term leasing arrangements. NARPS has proven to be a very effective method of delivery. I am advised by NAMA that NARPS has incurred set up and ongoing operational costs, including costs incurred in the valuation of properties it has acquired and insurance costs, of €784,000 to 30 June 2014.
71. Deputy Willie Penrose asked the Minister for Finance if he will consider increasing the taxes exemption threshold for small businesses from €75,000 to €150,000 in the forthcoming budget as this would be important to them in the context of the economic environment, in which they are trying to survive; and if he will make a statement on the matter. [37546/14]
View answerIt is assumed that the Deputy is referring to the VAT registration threshold for goods, which is currently €75,000. On this basis, I am informed by the Revenue Commissioners that it is tentatively estimated that the full year cost to the Exchequer of raising the threshold from €75,000 to €150,000 is between €310 million and €430 million.
I would point out however, that any increase in the thresholds above the level of inflation would require a derogation from EU VAT law and agreement by all 28 Member States before it could be introduced.
With regard to increasing the thresholds, it is not the practice to comment on what measures may or may not be introduced in advance of the Budget.
72. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economic indicators are currently in a positive trajectory; the extent that this is likely to facilitate ongoing economic recovery; and if he will make a statement on the matter. [37573/14]
View answer74. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the current economic indicators are poised to facilitate growth and ongoing economic recovery; and if he will make a statement on the matter. [37575/14]
View answer76. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy remains competitive; and if he will make a statement on the matter. [37577/14]
View answerI propose to take Questions Nos. 72, 74 and 76 together.
Following successful implementation of the EU-IMF programme, the Irish economy is emerging from the crisis and there are clears signs that economic recovery is under way.
First estimates of economic activity for the second quarter of this year were very strong and were well ahead of consensus expectations, with GDP growing by 1.5% over the quarter and by 7.7% year-on-year. Taken in conjunction with first quarter data, GDP grew by 5.8 per cent in the first half of this year. The increase in economic activity was broadly-based with both domestic sectors and exporting sectors performing strongly.
Exports rose by 13% in the year to the second quarter of 2014. This was the fastest rate of expansion since 2001 and there is growing evidence that the impact of the patent expiry issue in the pharmaceutical sector has passed.
Consumer spending on goods has been strong in the first eight months of this year. Retail sales in the period January to August were up 7% when compared with the same period in 2013. Core sales (excluding motor trades) were up 3.5% over the same period. Investment is also growing, with both building and construction and machinery and equipment activity rising. Recovery in the construction sector continued in August with the Purchasing Managers' Index for the sector recording a 13th successive month of expansion.
Recovery is also evident in the labour market with employment increasing in each of the last seven quarters representing an increase of over 70,000 since the low point in mid-2012. In line with this, the standardised unemployment rate stood at 11.1 per cent at the end of September, having fallen from a peak of 15.1 per cent in early 2012. Ireland's competitiveness has significantly improved in recent years. Low consumer price inflation over the last five years has meant that Irish price levels have fallen considerably relative to the euro area. For instance, annual HICP inflation in Ireland has been below that of the euro area average for every year since 2008. This trend continued into the early part of this year, with inflation over the first six months of the year coming in below the comparable rate in the euro area.
The Government remains focused on maintaining the reform momentum to achieve the goals of creating more jobs, enhancing living standards and, ultimately, achieving full employment. As set out in its Statement of Government Priorities 2014-2016, the Government is prioritising the actions needed to build on the economic recovery that is already under way to ensure that the benefits of the recovery are felt by everyone across the country.
73. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which economic growth throughout the eurozone can be encouraged without creating inflation; and if he will make a statement on the matter. [37574/14]
View answerThe pace of economic growth in the euro area stalled in the second quarter of this year. The objective is now to boost the pace of economic growth and to increase the rate of inflation, which is currently excessively low.
There are a number of dimensions to this. Firstly, the European Central Bank has adopted a loose monetary policy stance, designed to raise economic activity and reduce fragmentation across euro area financial markets.
On the fiscal side, the pace of consolidation is slowing, in aggregate terms, across the euro area, and this is appropriate. In addition, a greater focus is needed on the implementation of structural reforms to foster growth and job creation in the euro area.
Finally, a number of initiatives are being examined to boost the level of investment in the EU including the use of EIB capital, how to better use public funding as well as a €300 billion investment package proposed by European Commission President-elect Jean-Claude Juncker. These issues will be dicussed at the upcoming European Council meeting in October.
75. Deputy Bernard J. Durkan asked the Minister for Finance in view of recent efforts to prevent state aid that might be used to encourage foreign direct investment here and in other countries throughout the eurozone, if foreign direct investment in non-eurozone states is being equally discouraged with particular reference to such investment in Europe and Asia; and if he will make a statement on the matter. [37576/14]
View answerThe purpose of State Aid control is to ensure that State intervention does not interfere with the smooth functioning of the internal EU market or harm the competitiveness of EU undertakings. It does not seek to encourage or discourage foreign direct investment into the EU or Eurozone, but rather to remove distortions to competition between EU Member States.
State Aid policies are an intrinsic part of the overall competition policy of the EU. Competition policy is an instrument for the achievement of the EU's aims, which include achievement of economic growth, prosperity, social protection, employment and cohesion between Member States.
To ensure that competition in the internal market is not distorted, EU law provides for a number of fundamental Freedoms which remove obstacles to free movement of goods, persons, services and capital between Member States. It also seeks to prevent distortions to competition which may rise from collusive agreements between firms; abuses of dominant market positions; or unjustified state aids.
State Aid controls maintain a level playing field between Member States and ensure that State intervention is kept to a minimum, in order to ensure that markets and businesses can continue to operate effectively.
