Written Answers Nos. 64 - 87
64. Deputy Willie O'Dea asked the Tánaiste and Minister for Social Protection the number of data protection breaches that were reported in her Department this year; the action that has been taken to address these breaches; and if she will make a statement on the matter. [49369/14]
View answerIn 2014 there have been a total of 24 confirmed data breaches. A further 13 cases reported are still under investigation to establish if a breach occurred.
Suspected data breaches identified by the Department’s own auditing and monitoring systems, or brought to the Department’s attention by third parties, are thoroughly investigated and appropriate action is taken. The majority of confirmed breaches are due to genuine error, such as inadvertently addressing communications to the wrong person. In all cases processes and procedures are examined to prevent re-occurrence and an apology is sent to the clients concerned. The clients are also informed of their right to contact the Office of the Data Protection Commissioner.
In some cases where a data protection breach has been substantiated and the breach occurred because of certain actions of a staff member, appropriate sanctions are applied in accordance with the Civil Service Disciplinary Code. Sanctions applied reflect the severity of the breach and can include dismissal, financial penalties such as the loss of increments, removal of access to the Department’s systems and loss of entitlement to enter promotional competitions.
The Department takes its responsibilities in relation to data protection very seriously. Every effort is made to ensure that personal customer data is used solely for business purposes and that it is not compromised in any way.
The Department has data protection and information security policies, standards, procedures and guidelines in place governing the use of its computer systems and customer data. These are kept under constant review and updated as appropriate.
Staff members are regularly reminded of their obligations in accordance with these policies and of the penalties applicable in respect of any breach of them. All staff members are required to sign undertakings every year to the effect that they have read, and will act in accordance with, data protection policies and guidelines.
Data protection obligations are also covered on induction programmes for new staff members, on management development programmes and in presentations given by the Department’s Business Information Security Unit.
65. Deputy Barry Cowen asked the Tánaiste and Minister for Social Protection the total external public relations costs incurred by her Department in 2011, 2012, 2013 and estimated in 2014. [49387/14]
View answerThere were no costs incurred by my Department in respect of public relations for the years 2011, 2012, 2013 and to date in 2014. In line with Department of Social Protection policy, the press office deals with all media queries and public relations matters. It is the Department’s policy to use in-house resources as much as possible and to restrict the use of external firms to a minimum.
The total 2014 estimate for the Department for external public relations/communications is €3,150.
The statutory bodies operating under the aegis of the Department of Social Protection are the Citizens Information Board, the Pensions Board, the Pensions Ombudsman and the Social Welfare Tribunal. There were no costs incurred by these agencies for external public relations in 2011, 2012, 2013 and to date in 2014.
66. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if the revised system in respect of rent support as applicable in the Dublin area may be applied in the case of a person (details supplied) in County Kildare, in view of the fact that failure to meet the increased rent will result in homelessness; and if she will make a statement on the matter. [49402/14]
View answerThe client concerned has been requested to provide the Department with an up to date lease agreement and Rent Supplement application form confirming any increase in monthly rent. On receipt of this documentation the client's rate of Rent Supplement entitlement can be assessed.
67. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if the revised system in respect of rent support as applicable in the Dublin area may be applied in the case of a person (details supplied) in County Dublin; and if she will make a statement on the matter. [49403/14]
View answerAccording to the records of this Department, the person concerned has not been in contact to advise that her accommodation is in the process of being sold. It is open to the person concerned to contact her local Community Welfare Officer who will provide information on all the options currently available to her and on the processes involved.
68. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if fuel allowance is payable in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [49408/14]
View answerFuel allowance is paid to people who are dependent on long-term social welfare payments and who satisfy the qualifying conditions.
The person concerned is in receipt of illness benefit which is classed as a short term benefit and as such is not one of the qualifying schemes for receipt of fuel allowance.
69. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if a person (details supplied) in County Kildare qualifies for dental benefit; and if she will make a statement on the matter. [49412/14]
View answerTreatment benefit is a PRSI based scheme. A person under the age of 21 may qualify if they have at least 39 reckonable contributions paid since first starting work. PRSI Classes A, E, H and P are reckonable for treatment benefit qualification.
Records currently available indicate that the person concerned has no PRSI contributions recorded up to the end of 2013.
The person concerned may qualify based on his 2014 employment, if he has 39 reckonable contributions paid since 1 January 2014. If this is the case, he should submit an application form (available from his dentist) together with a statement from his employer detailing the PRSI contributions (class and number) paid in respect of his employment in 2014. A decision on entitlement will be made on receipt of this documentation.
71. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if she will confirm that all documents requested have been submitted in the case of a jobseeker's application in respect of a person (details supplied) in County Kildare; if a decision is likely to issue at an early date; and if she will make a statement on the matter. [49415/14]
View answerThe person concerned has not submitted all the documents requested in respect of his jobseeker's allowance application. The details of bank accounts held either solely or jointly with his spouse are still outstanding. His jobseeker’s allowance claim is currently disallowed for non-disclosure of means.
This decision has been appealed to the Social Welfare Appeals Office. The person concerned has been written to and advised if the documentation outstanding is submitted to his local office by 17/12/2014 a review of the application will be undertaken. If the documentation is not submitted by this date, the claim will then be forwarded to the Social Welfare Appeals Office.
72. Deputy Jack Wall asked the Minister for Finance if a person (details supplied) in County Kildare is entitled to further tax rebate; and if he will make a statement on the matter. [48780/14]
View answerI am informed by the Revenue Commissioners that PAYE Balancing Statements (P21s) for the years 2013 and 2014 were processed on 16 December 2014. These Balancing Statements will issue to the person concerned shortly.
Refunds of tax and USC arising will issue in the near future in respect of both years.
73. Deputy Pearse Doherty asked the Minister for Finance his plans to amend the applicable rates of VAT so that school uniforms of all sizes are rated at 0%. [48786/14]
View answerThe VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. In this regard, the rate of VAT that applies to a particular good or service is determined by the nature of the good or service, and not by the status of the customer.
Children's clothing and footwear are subject to the zero rate for children up to and including 11 years. The zero rating applies according to the following criteria:
- all children's clothing of sizes up to and including 32" chest or 26" waist; and
- children's footwear up to and including size 5½ (38 continental or equivalent).
Under the EU VAT Directive, Member States may retain the zero rates on goods and services which were in place on 1 January 1991, but cannot extend the zero rate to new goods and services. As school uniforms for people over 11 years of age were not subject to the zero rate on 1 January 1991, it is not possible to apply the zero rate to these uniforms now.
In addition, Member States may apply a reduced VAT rate to those goods and services which are listed under Annex III of the EU VAT Directive. As clothes and shoes are not listed under this Annex the reduced rate cannot be applied to the supply of school uniforms. Therefore the only rate of VAT that can apply to the supply of school uniforms for children over 11 years of age is the standard VAT rate of 23%.
74. Deputy Peadar Tóibín asked the Minister for Finance his plans to alter the tax registration process in the construction industry from employer registration to employee-subcontractor registration. [48847/14]
View answerUnder the Tax Code there is an obligation placed on the person making a payment to register for tax where either the payment is made in the capacity of an employer (Regulation 7 of the Income Tax (Employments) (Consolidation) Regulations 2001 or in the capacity of a principal contractor (Section 530J Taxes Consolidation Act 1997). There is, of course, a separate requirement placed on subcontractors to notify Revenue of their self employment status and to pay and file under the self-assessment regime.
It is essential to retain the requirement that an employer or principal, as a person who is deducting tax, should register. Putting the onus on an employee/subcontractor to register instead could make it harder to follow up defaulting employers/principals and lead to considerable tax being placed at risk and I therefore do not propose to change the registration process.
It may be that the Deputy believes that registration by the principal results in a recipient of a payment being treated as a self-employed contractor rather than an employee and that putting the onus of registering on the individual recipient would change this. This is not correct. The individual's status as an employee or a self-employed contractor derives, not from any registration by one or other of the parties with the Revenue Commissioners, but from the nature of the contract concerned.
If the true relationship between parties is that of an employer/employee then the employer is required, under the Tax Code, to operate PAYE on payments made to the employee. If, however, the true relationship is not that of an employer/employee then, where the relationship relates to construction operations, as defined within the Tax Code, there is a requirement to operate the relevant RCT provisions.
I would also add that determining the true nature of the contract is essential not alone to the proper functioning of the tax system but also in establishing employment rights.
I wish to advise the Deputy that the Code of Practice for Determining Employment or Self-Employment Status of Individuals was created to assist both parties to an engagement including engagements in the construction sector - in determining whether a contract is, by its nature, either a contract of service (that is, an employer and employee arrangement) or a contract for services (that is, not an employer and employee arrangement). The Code is not a Revenue Code but rather was compiled by the Hidden Economy Monitoring Group, consisting of the Irish Congress of Trade Unions/Department of Jobs, Enterprise and Innovation/National Employment Rights Authority/Department of Social Protection/Department of Finance/Small Firms Association/Irish Business and Employers Confederation/Construction Industry Federation/Revenue Commissioners.
I am advised that under the current arrangements for the construction industry, where the principal believes that a contract with a subcontractor is one of self-employment, the subcontractor is notified of that fact in writing by the Revenue Commissioners. The subcontractor is fully entitled to clarify with the Revenue Commissioners any matters they are unsure about and if in the course of this, the Revenue Commissioners form the view that the contract is, in fact, a contract of employment they will take such action as they deem appropriate to ensure that PAYE is operated.
75. Deputy Michael McCarthy asked the Minister for Finance with regard to the living city initiative, when the scheme will be extended to other cities; if he will extend the initiative to Clonakilty, County Cork; and if he will make a statement on the matter. [48848/14]
View answerThe Deputy will be aware that I announced in my Budget Statement that the Living City Initiative, which was enacted in the Finance Act 2013, would be extended to now include the cities of Dublin, Cork, Galway and Kilkenny as well the original target cities of Limerick and Waterford. The inclusion of these four cities within the Initiative followed the results of a thorough independent ex ante cost benefit analysis.
I do not intend to extend the Initiative further than these 6 cities at this time.
The Initiative will target certain areas of these six cities, particularly those areas which are most in need of regeneration. Those designated areas will be decided upon following consultations with the relevant local authorities and other Government agencies. It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas which are most in need of attention.
76. Deputy Michael McNamara asked the Minister for Finance if the illustrative examples provided to Members of Dáil Éireann of the impact of budget 2015 are contradicted by the findings of the ESRI on the impact of the budget; and if he will make a statement on the matter. [48855/14]
View answerIt is assumed that the illustrative examples to which the Deputy refers are those included in the published Budget 2015 documentation. These illustrative cases were designed to model a range of typical scenarios to show the effects of the changes to Income Tax, USC and Child Benefit announced on Budget Day. Although not exhaustive, they are accompanied by a series of tables setting out a distributional analysis of the effect of these measures on different types of taxpayers over a wide range of income levels. The Budget book also contains tables showing the effective tax rates faced by taxpayers over a number of years. Collectively, their purpose is to communicate how individuals and families will be affected by the changes announced on Budget Day. I would remind the Deputy that water charges did not form part of measures announced in Budget 2015. The format in which this data is presented remains broadly unchanged from year to year to facilitate comparability.
It is also assumed that the ESRI findings to which the Deputy refers, relate to the distributional analysis by the ESRI of the collective impact of the water charges and the Budget 2015 receipt and expenditure measures. This is a different analysis which does not invalidate the illustrative cases put forward in the Budget documentation. For instance, the illustrative cases do not include the partial restoration of the social welfare Christmas bonus which is included in the ESRI analysis.
Notwithstanding the results of the different analyses, it remains a fact that as a result of the income tax and USC changes in Budget 2015 all those currently paying income tax and or USC will see a reduction in their tax bill next year.
77. Deputy Mary Mitchell O'Connor asked the Minister for Finance the targets that have been set by him for the pillar banks to provide credit to small and medium enterprises in each of the years 2011 to date in 2014; the degree to which these targets have been met; the types of businesses that have received such credit; their regional spread; and if he will make a statement on the matter. [48870/14]
View answerThe Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. As the Deputy is aware, the Government imposed SME lending targets on AIB and Bank of Ireland for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion in 2012 and €4 billion in 2013 for new or increased credit facilities to SMEs from all sectors and regions. Both banks achieved these lending targets.
Although the targets were a useful policy intervention, since the beginning of 2014 the focus has shifted towards the collation and examination, on a monthly basis, of more granular data on the funding of the activities of SMEs from both AIB and Bank of Ireland, the wider banking sector and increasingly the non-bank funding sector. Having completed a process of deleveraging, both AIB and Bank of Ireland are now concentrating on growing their balance sheets. In this context, both banks recognise the need to increase business lending in the period up to 2016, particularly lending to the domestic market, and have put on record their commitment to the SME sector. Both banks have recently reported increased year on year sanctioning activity for lending to the SME sector.
My Department and the Credit Review Office monitor the data received from AIB and Bank of Ireland on a regional and sectoral basis but this is commercially sensitive information and I am not in a position to release it. The Central Bank does not publish information on credit on a regional basis.
78. Deputy Mary Mitchell O'Connor asked the Minister for Finance his views on the imposition of a 1% and 5% wealth tax on incomes over €100,000; the impact on the domestic economy; the effect on the Government's project growth rates, consumer demand and so on; and if he will make a statement on the matter. [48871/14]
View answerIt is assumed the Deputy is referring to the introduction of a new third rate of Income Tax on incomes over €100,000. I am advised by the Revenue Commissioners that, given the current band structures, major issues would need to be resolved as to how in practice such a rate could be integrated into the current system and how this would affect the relative position of different types of income earners. Notwithstanding these issues, the first and full year estimated yield from the tax increases on incomes over €100,000 are shown in the following table.
|
Tax Rate |
First year estimated yield |
Full year estimated yield |
|
41% on income >€100,000 |
€40m |
€64m |
|
45% on income > €100,000 |
€198m |
€320m |
The figures are estimates from the Revenue tax-forecasting model for 2015, using actual data for the year 2012 adjusted as necessary for income, self-employment and employment trends in the interim. These are, therefore, provisional and may be revised.
The progress made over the past three years in improving public finances, increasing economic growth and creating jobs, means the Government can focus on reforming the income tax system in a manner that contributes positively to and strengthens our economic recovery. The Government is therefore following a considered and focused tax reform plan to be delivered over a number of Budgets that will maintain the highly progressive nature of the Irish tax system.
Marginal tax rates are an important element of the reform plan because they influence individual decisions to work more or indeed to work at all. Having a low and competitive top marginal tax rate is viewed as one of the major drivers in promoting labour force participation. I have long said that the burden of the income tax system in Ireland is too high and is acting as a disincentive for work and investment in Ireland. That is why, as part of a range of income tax reform measures, I reduced the higher rate of income tax from 41% to 40% in Budget 2015.
As I have stated on a number of occasions, wealth can be taxed in a variety of ways, some of which are already in place in Ireland. Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company on the disposal of an asset (CGT) or the acquisition of an asset through gift or inheritance (CAT). Deposit Interest Retention Tax (DIRT) is charged at 41%, with limited exemptions, on interest earned on deposit accounts. Local Property Tax (LPT) introduced in 2013 is a tax based on the market value of residential properties. Finance Act 2010 introduced a new levy known as the Domicile Levy which can be seen as a form of wealth tax. It is aimed at high wealth individuals with a substantial connection to Ireland, whether they are tax resident or not, to ensure they make a tax contribution to this country in a year of at least €200,000.
The Government has no plans to introduce a wealth tax, although all taxes and potential taxation options are of course constantly reviewed.
79. Deputy Joanna Tuffy asked the Minister for Finance if he will provide an update on the publishing of data on income distribution from tax data (details supplied); and if he will make a statement on the matter. [48914/14]
View answerI am advised that the Revenue Commissioners have proactively reviewed both the content and dissemination methods for their publication of statistical information. They are now providing their most relevant and sought after information in new and more accessible formats on a Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html. Whereas previously information was provided by way of static tables in documents, Revenue is now adding to this by making the statistical information available to be queried and downloaded in a range of machine readable formats. This will make it much easier for interested parties and researchers or analysts to access and use Revenue's statistics.
Most statistical material for 2012 was published over the summer and the majority of the information for 2013 has been published in recent weeks. Income distribution information for tax year 2012 was only due to be filed with Revenue in late 2013 and the data have been processed and analysed during 2014. I am advised therefore that income distribution statistics for 2012 will be published shortly on the Commissioners' Statistics website. The information on this webpage will then be updated in due course, as newer data become available, rather than on an annual basis as previously.
I commend the Revenue Commissioners for their initiative in updating their statistical outputs, as increased availability of information will enable better informed research on public policy issues in Ireland, and this also places Revenue at the forefront of the Government's Open Data initiative.
80. Deputy Pearse Doherty asked the Minister for Finance the position regarding bilateral loans and financial borrowings from the British Government to the State. [48935/14]
View answerThe bilateral loan to Ireland from the United Kingdom as set out in a loan agreement dated 22 December 2010, as Amended and Restated pursuant to the Amendment Agreement dated 4 October 2012, is for a total of £3,226,960,000.00.
The full amount of the UK Bilateral Loan has been drawn down.
The loan was drawn down in eight tranches, following the successful completion of the relevant EU/IMF Programme reviews, and details are set out in the table.
Final Disbursement Table for United Kingdom Bilateral Loan
|
Nominal Loan Amount |
Date of Drawdown |
Maturity Date |
Term of Drawdown |
|
GBP 0.40 billion |
14-Oct 2011 |
14-Apr-2019 |
7.5 years |
|
GBP 0.40 billion |
30-Jan-2012 |
30-Jul-2019 |
7.5 years |
|
GBP 0.40 billion |
28-Mar-2012 |
28-Sep-2019 |
7.5 years |
|
GBP 0.40 billion |
01-Aug-2012 |
01-Feb-2020 |
7.5 years |
|
GBP 0.40 billion |
19-Oct-2012 |
19-Apr-2020 |
7.5 years |
|
GBP 0.40 billion |
06-Mar-2013 |
06-Sep-2020 |
7.5 years |
|
GBP 0.40 billion |
06-Jun-2013 |
06-Dec-2020 |
7.5 years |
|
GBP 0.40 billion |
26-Sep-2013 |
26-Mar-2021 |
7.5 years |
|
GBP Total £3.23 billion (EUR Equivalent Total €3.83 billion) |
Weighted Average Life: 7.5 years |
Table: NTMA Website http://www.ntma.ie/business-areas/funding-and-debt-management/euimf-programme/
81. Deputy Pearse Doherty asked the Minister for Finance if the State has formally requested a waiver on the early repayment of bilateral loans from the British Government and the outcome of any such request. [48936/14]
View answerThere is no proposal to make an early repayment of any of our bilateral loans from the United Kingdom, the Kingdom of Sweden and the Kingdom of Denmark and the issue of seeking a waiver in this respect does not therefore arise.
82. Deputy Pearse Doherty asked the Minister for Finance if he will provide both the date and amount of the latest repayment on bilateral loans to the British Government by the State. [48937/14]
View answerThe bilateral loan to Ireland from the United Kingdom as set out in a loan agreement dated 22 December 2010, as Amended and Restated pursuant to the Amendment Agreement dated 4 October 2012, is for a total of £3,226,960,000.00.
The full amount under the UK Bilateral Loan has been drawn down, with the last of eight tranches being disbursed on 26 September 2013.
The first repayment of £403,370,000 is due to be made on 14 April 2019.
The final repayment of €403,370,000 is due to be made on 26 March 2021.
Details of each of the eight tranches are set out in the table.
Final Disbursement Table for United Kingdom Bilateral Loan
|
GBP 0.40 billion |
14-Oct 2011 |
14-Apr-2019 |
7.5 years |
|
GBP 0.40 billion |
30-Jan-2012 |
30-Jul-2019 |
7.5 years |
|
GBP 0.40 billion |
28-Mar-2012 |
28-Sep-2019 |
7.5 years |
|
GBP 0.40 billion |
01-Aug-2012 |
01-Feb-2020 |
7.5 years |
|
GBP 0.40 billion |
19-Oct-2012 |
19-Apr-2020 |
7.5 years |
|
GBP 0.40 billion |
06-Mar-2013 |
06-Sep-2020 |
7.5 years |
|
GBP 0.40 billion |
06-Jun-2013 |
06-Dec-2020 |
7.5 years |
|
GBP 0.40 billion |
26-Sep-2013 |
26-Mar-2021 |
7.5 years |
|
GBP Total £3.23 billion (EUR Equivalent Total €3.83 billion) |
Weighted Average Life: 7.5 years |
||
|
Nominal Loan Amount |
Date of Drawdown |
Maturity Date |
Term of Drawdown |
Table: NTMA Website http://www.ntma.ie/business-areas/funding-and-debt-management/euimf-programme/
83. Deputy Terence Flanagan asked the Minister for Finance his views on the restoration of mortgage interest relief (details supplied); and if he will make a statement on the matter. [48949/14]
View answerThis question relates to the interest restriction applying to residential lettings, whereby the deductibility of interest in computing taxable rental income from residential property (insofar as it would otherwise be allowable) is limited to 75% of such interest. The restriction was introduced in the April 2009 supplementary budget in respect of all residential lettings as part of an urgent revenue-raising package aimed at stabilising the public finances and I have no plans at this stage to amend it.
I am informed by the Revenue Commissioners that rental income for tax purposes from such property is the gross rental income less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act 1997. The main deductible expenses are:
- any rent payable by the landlord in the case of a sub-lease;
- the cost to the landlord of any goods provided or services rendered to a tenant;
- the cost of maintenance, repairs, insurance and management of the property;
- the interest paid on borrowed money used to purchase, improve or repair the property (which, in the case of residential property, is restricted to 75% of the interest and is subject to compliance with PRTB registration requirements for all tenancies that existed in relation to the property in the relevant year); and
- payment of local authority rates.
In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.
84. Deputy Terence Flanagan asked the Minister for Finance his views on a recommendation (details supplied) regarding the universal social charge; and if he will make a statement on the matter. [48951/14]
View answerThe Universal Social Charge (USC) was introduced by the Finance Act 2011 and is charged for the tax year 2011 and subsequent years. USC is charged on an individual's aggregate income for a tax year, which may include income from letting property. There was no change to the treatment of rental income for USC purposes in either Budget 2013 or Budget 2014.
As the Deputy will be aware however, in addition to extending the USC exemption threshold to €12,012, I also reduced the two lower USC rates and extended the threshold before which the 7% rate becomes chargeable, with effect from 1 January next. This will apply to income earned from letting as it applies to income from any other source which is liable to USC.
Where an individual is a PAYE taxpayer and any other income (including rental income, as the case may be with an "accidental" landlord, for example) is fully taken into account in the PAYE system, the USC liability is collected within the PAYE system. This has been the position for such PAYE taxpayers since USC was introduced in 2011.
Where an individual is a chargeable person and pays and files under the self-assessment system, USC is included with the preliminary tax payment with any balance due with the tax return by 31 October in the following tax year. This position is also unchanged since USC was introduced.
Further information on the USC is available from the Revenue website at: http://www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf
85. Deputy Terence Flanagan asked the Minister for Finance his views on a matter regarding bank charges (details supplied); and if he will make a statement on the matter. [48952/14]
View answerWhile credit institutions in Ireland are independent commercial entities and I have no statutory role in relation to the charges applied by credit institutions, section 149 of the Consumer Credit Act 1995 requires that credit institutions, prescribed credit institutions and bureaux de change must make a submission to the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges in respect of certain services. Section 149 does not cover interest rates rather it applies to fees and commissions only.
My Department published a report on the review of the regulation of bank fees and charges in December 2013. This contains a detailed description of the process by which the Central Bank makes decisions on whether or not to approve proposed charges. It is available on my Department's website at www.finance.gov.ie.
The following are the key findings of the review of the regulation of bank fees and charges undertaken by my Department:
- net fee and commission income divided by average assets in Irish banks was well below the average of their peers,
- net fees and commissions are lower in the Irish banks than in their European peers relative to net interest income,
- fee and commission income have become a more important source of income to the banks in recent years and banks have been able to increase fee and commission income since 2009 despite the restrictions imposed by section 149,
- competition in the Irish banking sector has reduced significantly since the onset of the economic crisis and that this reduction is not related to Section 149,
- it is too early to say whether the recent changes in legislation (under the Central Bank Supervision and Enforcement Act 2013) have been successful in attracting new entrants to the Irish banking sector,
- Section 149 does appear to exert a restraining effect on the development of innovative products by the existing banks in Ireland but this may not be to the detriment of consumers,
- Section 149 may lead to inefficiency in pricing of financial products by the banks in Ireland, and
- Low customer mobility may mean that banks can increase prices without fearing a loss of customers.
The review considered a number of possible changes to the existing regime but concluded that it would not be appropriate to repeal Section 149 at this point in time. The lack of competition in the banking sector means that the removal of section 149 would give unfettered price setting power to the incumbent banks. This issue should be revisited when competition in the banking sector has improved significantly.
I would advise consumers who wish to compare current account offerings to look at the Competition and Consumer Protection Commission website athttp://compare.consumerhelp.ie/CurrentAccount.
86. Deputy Pearse Doherty asked the Minister for Finance the way the early repayment of IMF loans will affect the relationship between Ireland and the IMF as regards the monitoring of the State by the IMF. [49015/14]
View answerThe early repayment of up to €18.3 billion of our loans from the International Monetary Fund (IMF) is being structured to ensure that IMF post programme monitoring continues for the initially envisaged period, i.e. up to mid-2021.
It is normal for a member country to engage in post-program monitoring with the IMF after its programme has ended as long as its outstanding loan exceeds 200 percent of its IMF quota, and when it no longer has program involvement of any kind with the IMF.
Under post-programme monitoring, countries undertake more frequent formal consultations with the IMF than in the case under the IMF's normal surveillance, with a particular focus on macroeconomic and structural policies that have implications for external viability. There are normally two post-programme monitoring reviews per annum.
The IMF post programme monitoring process starts with a mission, and concludes with publication of a Staff Report following discussion by the IMF's Executive Board.
The first post programme monitoring by the IMF started with a mission in April this year, and concluded with publication of the Staff Report, following Executive Board discussions, on 18 June.
The second post programme monitoring started with a mission in November and is expected to conclude with publication of the Staff Report, following Executive Board discussion, in January 2015.
87. Deputy Terence Flanagan asked the Minister for Finance the priorities in his Department for the remainder of the term of the Government; and if he will make a statement on the matter. [49023/14]
View answerMy Department remains focused on maintaining the reform momentum necessary to achieve the goals of creating more jobs, enhancing living standards and, ultimately, achieving full employment as set out in the Government's Statement of Government Priorities 2014-2016. This statement prioritises 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.
My Department is currently finalising the drafting of a Statement of Strategy 2015 to 2017 that will be laid before the Houses of the Oireachtas in due course. This will detail a full list of the Programme for Government commitments and any emerging priorities that come under the remit of the Department of Finance.
