Written Answers Nos. 44 - 51
44. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection the position regarding benefits in budget 2015 for carers and pensioners (details supplied) in Dublin 3; and if she will make a statement on the matter. [40636/14]
View answerThe person concerned is not in receipt of a payment from this Department. Accordingly, he does benefit from social protection measures announced in the recent Budget. He may, however, depending on his level of income benefit from USC and income tax measures announced by my colleague, the Minister for Finance.
Persons on low income, such as income from an occupational pension, may qualify for a means tested payment from my Department subject to satisfying the statutory conditions for the relevant scheme. In addition, persons who are looking after another person who requires full time care and attention because of age, disability or illness may be eligible for a carer's allowance payment. The latter payment is means tested. The first €332.50 of gross weekly income (€665 per week in the case of a couple) is not taken into account in determining entitlement. Reduced rates may also be payable where income exceeds the amount disregarded in full.
In addition, recipients of carer’s allowance are automatically entitled to the respite care grant (RCG). Other people who are not in receipt of a social welfare payment but who are providing full time care and attention are also eligible for the grant.
I announced, on Budget Day, a number of welfare initiatives which will benefit pensioners, carers and people with disabilities who are in receipt of a welfare payment. There will be an increase in the living alone allowance of €1.30 per week, bringing the rate up from €7.70 to €9 for pensioners and people with disabilities. The living alone allowance is a payment made to pensioners and people with disabilities who live alone and was last increased in 1996.
In line with the Government’s Statement of Priorities, I have introduced a water support payment of €100 to recipients of the Household Benefit Package, to help older people and other vulnerable groups meet the cost of water services. In addition, I also introduced a payment of €100 per annum to fuel allowance recipients who are not in receipt of the Household Benefits Package. This measure will also work to alleviate the impact of water costs.
The Christmas Bonus was abolished by the previous Government in 2009. I am pleased to say that I am in a position to partially restore the Bonus this year. A bonus of 25% will be paid in early December to all long-term welfare recipients including pensioners and carers. This will cost over €63 million and is in recognition of the position of vulnerable households.
46. Deputy Stephen S. Donnelly asked the Minister for Finance further to recent reports of gardaí attempting to locate a businessman (details supplied) who is being pursued by the National Asset Management Agency, to disclose the number of cases in which NAMA has secured an order directing gardaí to arrest any person; the number of cases in which NAMA has attempted to secure an order directing gardaí to arrest a person; and if he will make a statement on the matter. [40514/14]
View answerIn Irish civil litigation procedure, there is no provision for a plaintiff (such as NAMA) to seek an order in the terms described in the PQ, namely, an "order directing Gardaí to arrest any person". In certain circumstances it is open to the judge in a civil litigation matter to issue a bench warrant for the arrest of a person and a judge in civil proceedings may make an order for committal for contempt of court. There is a remedy in civil procedure which allows for a party to make an application to Court for the attachment and committal of a person who is in contempt of court (for example by breaching a court order), and this remedy has been availed of by NAMA on one occasion so far.
47. Deputy Aengus Ó Snodaigh asked the Minister for Finance if water is now considered a utility and has a tax exemption; the reason there is no tax exemption for other utilities such as electricity, gas and so on. [40490/14]
View answerIrish Water is described as the national water utility. The Water Services (No.2) Act 2013 refers to "the public utility nature of its functions".
In recognition of the new charging regime for the provision of water supplies, I announced in the Budget that I would provide tax relief at the standard rate of 20% on water charges paid up to a maximum of €500, resulting in a maximum potential relief of up to €100 per household per annum.
Water is differentiated from other utilities in Ireland, by virtue of the fact that the supply of water by local authorities and Irish Water is also exempt from value-added tax. This VAT exemption is based on a derogation from EU VAT which provides that we can exempt the supply of water, as it has been exempt since 1978. It is worth pointing out that most EU Member States charge VAT on the supply of water.
While there is no tax exemption for other utilities, the supply of gas, electricity and other domestic fuels is chargeable at the reduced VAT rate of 13.5% in Ireland under a separate EU VAT law derogation.
Given the special circumstances that apply to the supply of water, the provision of some relief for water charges has merit. In this regard, my officials are working closely with their colleagues in the other relevant Departments and Agencies, in the development of the operational processes that will be employed to deliver the relief.
48. Deputy Michael McGrath asked the Minister for Finance if a person will be able to claim both the water charge tax credit and the €100 payment as a recipient of the household benefits package; and if he will make a statement on the matter. [40501/14]
View answer73. Deputy Róisín Shortall asked the Minister for Finance in relation to the relief measures in respect of water charges announced in budget 2015, if someone in receipt of the household benefits package and who is also in the income tax net, will be permitted to claim the relief measure available to recipients of the household benefits package as well as tax relief on the remaining part of their water charges. [40630/14]
View answerI propose to take Questions Nos. 48 and 73 together.
As the Deputy is aware, I announced in the Budget that tax relief for water charges will be introduced. Relief will be available at the standard rate of 20%, on water charges paid, up to a maximum of €500 per annum, which may result in tax relief up to €100.
Individuals in receipt of the relevant compensatory payments from the Department of Social Protection will not be permitted to also claim tax relief in respect of the same water charges.
49. Deputy Michael Moynihan asked the Minister for Finance his views on the introduction of legislation in all EU member states to prevent vulture funds from claiming more than other lenders in the case of a sovereign debt crisis; and if he will make a statement on the matter. [40503/14]
View answerThere have been recent discussions at the IMF on sovereign debt restructuring but there are no proposals at an EU level to legislate regarding the actions of so called "vulture funds" in the case of sovereign debt crises. Ireland along with all Eurozone members now includes Collective Action Clauses in the sovereign bonds it issues. Such clauses provide for a standardised mechanism for the renegotiation of the debt instruments in certain circumstances.
50. Deputy Michael Moynihan asked the Minister for Finance if he will review the Central Bank of Ireland's code of conduct on mortgage arrears; if he will ensure that it is legally binding, procedurally fair to borrowers and that vulture funds currently unregulated here are covered by it; and if he will make a statement on the matter. [40504/14]
View answer51. Deputy Ciarán Lynch asked the Minister for Finance if he will advocate for the introduction of legislation in all EU member states to prevent vulture funds from claiming more than other lenders in the case of sovereign debt crises; if he will review the Central Bank of Ireland's code of conduct on mortgage arrears, to ensure that it is legally binding, procedurally fair to borrowers, and that vulture funds currently unregulated here are covered by it as requested by a person (details supplied); and if he will make a statement on the matter. [40511/14]
View answer76. Deputy Finian McGrath asked the Minister for Finance the position regarding vulture funds (details supplied); and if he will make a statement on the matter. [40679/14]
View answerI propose to take Questions Nos. 50, 51 and 76 together.
The Central Bank published a revised Code of Conduct on Mortgage Arrears on 27 June 2013 following approval by the Central Bank Commission and consultation with the Minister for Finance. The Central Bank has advised that it will commence a review of CCMA compliance later this year.
Where the purchaser of a loan book is not a regulated entity in Ireland, the purchaser may voluntarily apply the codes when managing the loan books. Of course, voluntary compliance is not enforceable and ultimately it is the aim of this Government to ensure the same protections are available for all consumers whose loans have been sold.
Therefore, as Minister for Finance, I am committed to bringing forward legislation that protects consumers whose mortgages are sold to unregulated entities. The Government has reiterated this commitment on several occasions. In July and August of this year, my Department undertook a public consultation process seeking views on its proposed legislation to protect consumers whose loans are sold to unregulated entities.
The Department of Finance received 18 submissions from a range of respondents from the financial services industry, consumer groups, public representatives and individuals and other stakeholders. Officials in my Department are carefully considering the submissions and it is anticipated that legislation will be published by the end of this year.
There have been recent discussions on sovereign debt restructuring at IMF level but there are no proposals at an EU level to legislate regarding the actions of so called "vulture funds" in the case of sovereign debt crises. Ireland along with all Eurozone members now includes Collective Action Clauses in the sovereign bonds it issues. Such clauses will ensure that none of the bondholders of any Eurozone member experiencing sovereign debt difficulties will be treated more favourably than others.
