Written Answers Nos. 226-242
226. Deputy John McGuinness asked the Minister for Finance if the National Asset Management Agency, NAMA, decides a borrower is unco-operative is it possible for that borrower to review the files and conclusions of NAMA with a view to appealing NAMA’s decision; and if it is not possible the reason for same. [46368/14]
View answerI am advised that NAMA applies fair procedures in dealing with all debtors including rights of representation before any enforcement action is pursued. The debtor is made fully aware of the reasons any business decision is taken by NAMA in pursuing its objective of maximising debt recovery on behalf of the taxpayer.
227. Deputy Clare Daly asked the Minister for Finance the reason utility companies are instructed to levy VAT on the PSO charge and the legislative basis for this instruction. [46370/14]
View answerWith regard to the application of VAT on electricity bills supplied by utility companies, in accordance with section 37(1) of the Value-Added Tax Consolidation Act 2010, the amount on which VAT is chargeable is the total consideration receivable by the supplier, "including all taxes, commissions, costs and charges whatsoever", but not including the VAT itself. This reflects EU VAT law, with which Irish tax law must comply. In this regard, Article 78 of the EU VAT Directive provides that the taxable amount shall include "taxes, duties, levies and charges, excluding the VAT itself".
In this respect, where the charge for a supply of service, such as an electricity bill, includes the Public Service Obligation levy, VAT law dictates that VAT should be calculated on the PSO levy element of the charge as well as the charge for the service. The same situation applies in the case of other excises, including for example excises on petrol, auto-diesel, tobacco and alcohol products.
228. Deputy John McGuinness asked the Minister for Finance the total number of borrowers on the National Asset Management Agency’s books, indicating whether they are individual or corporate; and with regard to both categories the number of which have agreed debt reduction strategies with the agency. [46378/14]
View answerI wish to advise the Deputy that, NAMA manages its loan portfolio on the basis of debtor connections, which may consist of one debtor or a number of closely-related debtors whose aggregate debt is considered by NAMA to be best managed as one cohesive connection rather than managed through separate debtor entities. Debtor connections therefore can comprise both corporate and individual debtors.
NAMA's approach has been to seek to maximise debt repayment by, wherever possible, working consensually with debtors. Where a consensual approach is not viable, NAMA exercises such enforcement options as are open to it. An enforcement strategy is pursued by NAMA in circumstances where the debtor's business plan is not considered acceptable, the debtor is in default, the debtor is not cooperating or where some other event has occurred that could potentially threaten NAMA's position as a creditor, which would include the debtor achieving best value for money when engaging service providers.
NAMA initially acquired loans linked to 778 debtor connections. 127 debtor connections have either repaid their debt in full or their related loans have been sold. Of the remaining, NAMA is working consensually with 57% of debtor connections representing 72% by reference to NAMA debt.
229. Deputy John McGuinness asked the Minister for Finance if the National Asset Management Agency has a code of conduct for its employees and agents; if there is a complaints procedure; and if borrowers are made aware of same. [46380/14]
View answerThe NAMA Code of Practice and Professional Conduct Officers of NAMA (the "Code") was adopted by the NAMA Board at its meeting of 7th January 2010. The Code, which is reviewed annually, underscores NAMA's commitment to the highest standards of conduct and has been prepared to assist its personnel in understanding their duties, rights and obligations in the conduct of their work. It sets out the best practice standards in relation to confidentiality, conflicts of interest, disclosure of personal interests, personal account transactions and other matters in respect of which NAMA is required by statute to have a Code of Practice. The Code, as reviewed and amended by the NAMA Board at its meeting of 14th May 2014, was approved by me on 23rd June 2014.
The Code is available on the NAMA website in addition to four other Section 35 Codes of Conduct. The NAMA Board's Code of Conduct for members of the NAMA Board and it Committees is also available on the website. http://www.nama.ie/governance/codes-of-practice-and-conduct/.
Any complaints in relation to NAMA's Officers or any agents operating on behalf of NAMA can be directed to a dedicated NAMA email address info@nama.ie. All complaints are fully investigated.
230. Deputy John McGuinness asked the Minister for Finance the number of legal proceedings that the National Asset Management Agency or its agents has initiated since its inception; the number of same that have been settled out of court; the number resolved in court; and the numbers that remain ongoing. [46381/14]
View answerNAMA has initiated 259 cases since its inception, of which 142 are still active. Of the 117 cases that have completed, 16 of those cases (or part thereof) were settled out of Court and 101 were determined by the Courts.
231. Deputy John McGuinness asked the Minister for Finance the details of the National Asset Management Agency’s procurement policy; the procurement policy applied when NAMA requests borrowers to procure services; if this is a completely transparent policy; and where can it be reviewed. [46382/14]
View answerThe NAMA Board, pursuant to Section 15.1 of the Code of Practice for the Governance of State Bodies, has implemented a procurement policy to ensure compliance with the EU public procurement rules and to ensure NAMA achieves value for money when procuring services required by the agency.
The NAMA Procurement Policy applies to contracts procured by NAMA. NAMA borrowers are not governed by NAMA's Procurement Policy as they do not fall into the category of a public body/body governed by public law.
Details of contracts procured by NAMA can be found on the NAMA website http://www.nama.ie/procurement/.
232. Deputy John McGuinness asked the Minister for Finance his views on comments that it is easier for a borrower to travel to the United Kingdom and declare bankruptcy and be back in business after one year than to deal with the information demands and restrictions sought by the National Asset Management Agency. [46383/14]
View answerAs highlighted in my Department's Section 227 review of NAMA, one of the risks to NAMA is debtor fatigue. Debtors have engaged with NAMA on the establishment and implementation of business plans with a view to paying off their loans. However, debtors are seeking a certainty on recourse and an ultimate exit from their relationship with NAMA. The longer the debtor resolution process extends, the more a debtor may feel that insolvency or bankruptcy may be an alternative means to quickly end their relationship with NAMA.
NAMA advises me that it tracks all its debtors which declare bankruptcy. The Deputy will be aware that the discharge of any individual from a bankruptcy process is governed by the provisions of the relevant legislation in the jurisdiction concerned. Depending on the jurisdiction it may take a period after discharge before a debtor's creditors are notified. I am advised by NAMA that it has procedures in place to monitor the discharge from bankruptcy of its debtors in all of the main jurisdictions.
233. Deputy John McGuinness asked the Minister for Finance if it is possible for a borrower to see files held by the National Asset Management Agency that relate to the borrower; and if it is not possible the reason for same. [46384/14]
View answerNAMA is a data controller for the purposes of the Data Protection Acts. NAMA makes available to individuals copies of their personal data in accordance with the statutory right of access to personal data.
234. Deputy Sean Fleming asked the Minister for Finance the number of State board appointments that have been made under the aegis of his Department in 2014 without being advertised; the number that have been made of persons who had not formally applied for consideration of the particular appointment; and if he will make a statement on the matter. [46547/14]
View answerThe number of appointments which were made to State Boards in 2014 without being advertised and the number that have been made of persons who had not formally applied for consideration of the particular appointment is detailed in the table.
The majority of the appointments were in the main reappointments of Board members. The exceptions were in relation to appointments to National Treasury Management Agency (NTMA), where the new appointment resulted following a change of Secretary General in the Department of Finance, and the Strategic Banking Corporation of Ireland (SBCI) where an interim board has been appointed. In the case of appointments to the finalised SCBI Board and future appointments to State Boards the recent Government Decision in relation to the appointment process to State Boards will be adhered to by my Department.
|
Body |
Number of appointments made in 2014 which were not advertised |
Number of appointments made without person formally applying for consideration of the particular appointment |
|
Central Bank of Ireland |
2 |
2 |
|
Strategic Banking Corporation of Ireland |
3 |
3 |
|
National Treasury Management Agency Advisory Committee |
2 |
2 |
|
National Pensions Reserve Fund Commission |
1 |
1 |
|
National Asset Management Agency |
2 |
2 |
235. Deputy Alan Farrell asked the Minister for Public Expenditure and Reform his views on limiting the exposure of State supported schemes, such as the early childhood care education scheme, to the rates system; and if he will make a statement on the matter. [45814/14]
View answerThe Valuation Act, 2001 provides that all buildings used or developed for any purpose, including constructions affixed thereto, are rateable unless expressly exempted under Schedule 4 of the Act. Such exempt buildings would principally include those used for public worship, education and health care provided on a not-for-profit basis, and charitable purposes. In general, the Act maintains the long-standing position that all commercial properties - including all private child care facilities such as play schools, pre-schools, crèches and Montessori schools - are liable for rates.
At present, certain child care and pre-school facilities can be exempt from rates under the terms of paragraph 16 of Schedule 4 of the Valuation Act, 2001, where the organisation is a charitable organisation, that uses its property exclusively for charitable purposes and otherwise than for private profit. The organisation claiming charitable status for the purpose of qualifying for exemption from rates must comply with the definition of "charitable organisation" as stated in PART 1 section 3 of the Valuation Act, 2001. Similarly, certain pre-school facilities can be exempt from rates where the conditions detailed in paragraph 10 of Schedule 4 are met.
Inconsistency in the approach to the exemption from rates of child care and early education facilities was raised at Committee Stage of the Valuation (Amendment)(No. 2) Bill 2012 in the Seanad with Minister of State Simon Harris, who was taking the Bill through the Seanad on my behalf. He undertook to consider what could be done in this regard. As a result, I got Government approval for a Seanad Report Stage amendment to the Bill, to insert into Schedule 4 of the Valuation Act 2001 an exemption from rates for properties occupied by parties that provide early childhood care and education on a not-for-profit basis. This amendment was proposed and passed at Report Stage in the Seanad on 20th November 2014. I intend that the Bill will be considered by the Dáil shortly.
The decision taken by Government to extend the exemption from rates for early child care and education was taken having considered the views of stakeholders in the sector. As outlined in the Seanad, key valuation principles have to be respected to retain the integrity and equity of a system that is a significant source of funding for Local Authorities. One of those principles is that properties of occupiers that operate with the intention of making a profit are rateable. It is immaterial to the valuation of a property whether the occupier of a property, particularly an occupier that can make a profit, provides a service to the State or provides a service with the support of the State. There are a variety of other more appropriate means through which Government can and does support such services. Making exception to core, long-standing valuation principles can have a far reaching negative impact on the rates system and consequently a far reaching impact on Local Government funding.
236. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform his views that the current approach of Government in terms of the use of off-balance sheet financing for capital and infrastructure projects across Departments is in fact the best way to finance such projects particularly in terms of value for money; and if he will make a statement on the matter. [46367/14]
View answerPublic infrastructure is funded primarily in two ways: Exchequer financing (the vast bulk of funding) and PPP-sourced funding for particular projects that are suited to the PPP approach while providing value for money for the State. The Exchequer capital programme for the next three years has been set at €10 billion. This will represent significant continued Exchequer investment in the maintenance of valuable infrastructure and the creation of new assets. I am very keen that we look at how we can use private sector funding to supplement our Exchequer investment. As the Deputy will be aware, PPPs have been used in Ireland for over a decade. The main driver for the pursuit of PPPs in Ireland has been the achievement of a value for money (VfM) solution for the Exchequer rather than the achievement of a particular balance sheet status. The Irish government has put in place a number of VfM initiatives designed to secure value in the procurement of all public investment projects including PPPs. In addition to these measures, PPPs are also subject to four specific VfM tests throughout the procurement process in order to determine whether the PPP approach has the potential to deliver a VfM solution. The Deputy will also be aware that we are setting up the Ireland Strategic Investment Fund (ISIF) to channel investment from the National Pensions Reserve Fund (NPRF) towards productive investment in sectors of strategic importance to the Irish economy. The ISIF will seek to leverage and maximise the resources transferred from the NPRF by attracting third-party co-investment. In this way, the Fund's assets can be used as a catalyst to attract additional capital for investment in the Irish economy.
On Budget Day I announced a significant capital investment of some €2.2bn in social housing. This is comprised of €1.5 billion direct Exchequer investment, a €300m PPP investment and at least €400m investment in Approved Housing Bodies through an off-balance sheet financial vehicle. The use of off balance sheet funding mechanisms has allowed us to increase the overall level of funding available for this priority area and thereby begin to address a critical need.
237. Deputy John Halligan asked the Minister for Public Expenditure and Reform in view of an assurance that was provided to the residents in Passage East, County Waterford, that additional flood defence mechanisms would be put in place, the steps that have been taken to progress this project; the level of funding that will be allocated to the installation; the estimated timeframe in which the project will be completed; and if he will make a statement on the matter. [45996/14]
View answerResponsibility for progressing with a project to install additional flood defences in Passage East rests with Waterford County Council in the first instance.
The Office of Public Works (OPW) approved funding of €15,000 to the Council under the Minor Flood Mitigation Works and Coastal Protection Scheme in 2012 for a study of the flooding problem at Passage East. The Council fully drew down the funding in 2013.
It is a matter for the Council to progress any measures recommended on foot of the flood study.
The Council may apply to OPW for funding for any flood mitigation measures that qualify for funding under the Minor Flood Mitigation Works and Coastal Protection Scheme. Any application received will be assessed under the eligibility criteria, including a requirement that any measures are cost beneficial, and having regard to the overall availability of funding.
238. Deputy Robert Dowds asked the Minister for Public Expenditure and Reform the position regarding expenses for civil servants; and if those expenses have to be vouched. [45795/14]
View answerThere are a range of expense allowances payable to civil servants for certain costs incurred in the course of their duties as with all employments. Some expense allowances are vouched while others such as travel and subsistence are fixed amounts based on systems developed to take account of prevailing market costs.
Travel and subsistence payment amounts were reduced by the then Government by 25% in 2009 and have not changed since.
239. Deputy Seán Kenny asked the Minister for Public Expenditure and Reform if the Office of Public Works plans to refurbish the Casino Marino, Dublin 3; if so, the estimated cost of such works; and if he will make a statement on the matter. [46053/14]
View answerThe Commissioners of Public Works have no plans to refurbish the Casino at Marino. Remedial and repair works will continue to be undertaken as and when required.
240. Deputy Tom Fleming asked the Minister for Public Expenditure and Reform if the bridge at Barrack Street, Castleisland, County Kerry, over the River Maine will be investigated as there is an impediment with a sewer service pipe, which is blocking the flow of water in times of flood; and if he will make a statement on the matter. [46069/14]
View answerWhile Castleisland is within the River Maine catchment which is maintained as part of the Office of Public Works (OPW) arterial drainage responsibilities in this area the public road bridge at Barrack Street, Castleisland is the responsibility of the Local Authority and the sewer pipe mentioned is the responsibility of Irish Water.
241. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the number of State board appointments that have been made under the aegis of his Department in 2014 without being advertised; the number that have been made of persons who had not formally applied for consideration of the particular appointment; and if he will make a statement on the matter. [46177/14]
View answerThe only State Board appointments made under the aegis of my Department in 2014 were to the Board of the Public Appointments Service. All appointments made were of persons who applied following the advertisement of the vacancies on the stateboards.ie portal.
242. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if he will arrange a meeting between officials from the National Monuments Service of the Office of Public Works and a person (details supplied) to discuss the concerns this person has regarding issues relating to Sceilig Mhichíl in County Kerry; and if he will make a statement on the matter. [46210/14]
View answerOfficials of the Office of Public Works will be happy to meet with this individual at a mutually convenient time.
In order to assist with preparation for a meeting, and anticipating that it may call for input from parties from other Agencies, it would be helpful if this person could indicate in advance the subject areas he wishes to discuss. This can be addressed to frank.shalvey@opw.ie. Arrangements for the meeting can also be made at the same time.
