Written Answers Nos. 206-219
206. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection if she will provide, in tabular form, the number of recipients of jobseeker's allowance and jobseeker's benefit in each county on 31 December 2010, 2011, 2012, 2013 and 2014; and if she will make a statement on the matter. [7152/15]
View answerThe information requested by the Deputy is published annually by my Department in the “Statistical Information on Social Welfare Services” report. The reports for years 2010 to 2013 are available at www.welfare.ie/en/Pages/Annual-Statistical-Information-Reports.aspx or through the Oireachtas library. The corresponding data for 2014 are currently being collated by my Department, and will be published in the 2014 report as soon as they are finalised.
207. Deputy Michael Colreavy asked the Tánaiste and Minister for Social Protection the projected cost to her Department to convert to using Eircode; and if she will make a statement on the matter. [7610/15]
View answerThe Department of Social Protection will be undertaking a phased introduction of postcodes across its systems and processes.
The initial phase will be completed in 2015. To this end, the Project Governance Committee of the Department has approved the issue of a supplementary request for tender to a framework of approved bidders in order to implement the technical changes required to the IT systems of the Department. The associated costs of this initial phase will be known on completion of this technical work.
208. Deputy Róisín Shortall asked the Minister for Finance further to the statement made during questions to An Taoiseach on 27 January 2015 (details supplied), the basis upon which the €50 billion figure is arrived at; if he will provide a full breakdown of the figure; the period over which the €50 billion changes are calculated; and the actual savings that arise from these changes [6823/15]
View answer209. Deputy Mick Wallace asked the Minister for Finance if he will confirm that there have been savings of €50 billion on the promissory note and sovereign bond deal of February 2013; if he will provide, in tabular form, and by comparison with the original promissory note schedule, using reasonable assumptions on future interest rates, the way in which, and where, those savings have been made; and if he will make a statement on the matter. [6926/15]
View answer214. Deputy Michael McGrath asked the Minister for Finance if he will provide a detailed breakdown of the €50 billion debt reduction, he and a number of Ministers have stated the Government has secured, with regard to the renegotiation of the now concluded troika programme with Ireland. [6741/15]
View answerI propose to take Questions Nos. 208, 209 and 214 together.
The Government has made significant progress in reducing the burden of the EU/IMF programme loans. This is delivering real and tangible savings.
These savings can be broken down into two elements, cash savings and a reduction in our borrowing requirement over a period of time.
In July 2011, the Euro Area Heads of State or Government (HOSG) agreed to reduce the cost of the European Financial Stability Facility (EFSF) loans, and similar reductions were subsequently agreed for the interest rates on the loans provided by the European Financial Stabilisation Mechanism (EFSM) and also by the three bilateral lenders (UK, Sweden and Denmark). It is estimated that the interest rate reductions on the EU funding mechanisms and the bilateral loans are worth of the order of €9 billion over the initially envisaged 7 ½ year term of these loans.
The reduction in interest rates on our EU and bilateral programme loans in 2011, and more recently the early repayment of the IMF loans, mean that we have negotiated real cash savings to the exchequer of circa €10 billion.
Also in 2011, the average maturity of the EFSM and the EFSF loans was extended to 12.5 and 15 years respectively.
In 2013, EU Finance Ministers agreed in principle to further extend the maximum weighted average maturities on our EFSF and EFSM loans by up to 7 years, over and above the extension agreed in 2011. This further maturity extension removes a refinancing requirement of some €20 billion for the Irish State in the years 2015 to 2022. This extension of maturities has a number of significant benefits for Ireland, including smoothing our redemption profile, improving long term debt sustainability and it also has a positive impact on the cost of Exchequer borrowing through creating further downward pressure on our borrowing costs.
In February 2013, the Irish Government replaced the Promissory Notes issued to IBRC with a series of longer term, non-amortising floating rate Government bonds. The restructuring of the IBRC promissory note has reduced the overall borrowing requirement for the State by €20 billion over the next ten years. Under the previous arrangements, the State was required to borrow €3.1 billion annually in order to meet the required cash payments on IBRC's Promissory Notes. As part of the arrangement the Central Bank acquired €25bn of Floating Rate Bonds and €3.46bn of 5.4% Treasury Bond maturing in 2025 in replacement of the Promissory Notes. Following this exchange the State no longer has to borrow to fund these annual cash payments in the coming years.
The extension of maturities and the promissory note arrangement reduces the State's borrowing requirement by over €40 billion over the next decade, thus significantly improving the viability of the State's finances.
These measures, and the interest rate reductions, have significantly improved the sustainability of our debt. The success of these efforts is apparent in the strongly improving economy and the record low bond yields currently being offered for Irish Government debt.
210. Deputy Brendan Smith asked the Minister for Finance his plans to modify the requirements for the primary medical certificate; and if he will make a statement on the matter. [7007/15]
View answerThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, repayment of excise duty on fuel, and an exemption from Motor Tax.
To qualify for the Scheme, an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations. The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Regulations. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months a citizen can reapply if there is a deterioration in their condition.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the assistance with fuel costs used by members of the Scheme, based on provisional figures the Scheme represented a cost of €48.6 million to the Exchequer in 2014, an increase of €5.1 million on the 2013 cost. This figure does not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities, and I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. However, in the still challenging fiscal environment and given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
211. Deputy Seán Conlan asked the Minister for Finance if he will review the carbon tax, in view of the competitive disadvantage suffered by suppliers in the southern Border counties, in comparison to their northern counterparts; and if he will make a statement on the matter. [6655/15]
View answerCarbon tax was introduced in Budget 2010 on a phased basis. Initially it applied only to transport fuels, then to other liquid fuels such as kerosene and agricultural diesel and lastly it was extended to solid fuels in 2013.
In the most recent cross border price comparison, which was carried out by the Revenue Commissioners in October 2014, petrol and diesel were significantly cheaper in the south whilst home heating oils were a fraction of a cent more expensive in the south. Petrol was cheaper by 18 cent per litre and diesel was cheaper by 31 cent per litre in the south. Kerosene was 0.15 cent more expensive per litre and home heating diesel was 0.04 cent more expensive per litre in the south. Coal and peat are not among the products compared as part of this survey.
The application of carbon tax to solid fuels was delayed to allow for the development of a robust mechanism to counter the large scale sourcing of coal from Northern Ireland where lower sulphur standards apply. The Department of the Environment undertook to provide such a robust mechanism in conjunction with the National Standards Authority of Ireland (NSAI). Such a mechanism is in place since June 2011 and the Air Pollution Act (Marketing, Sale, Distribution and Burning of Specified Fuels) Regulations 2012 specify the environmental standards for coal placed on the market and provide the regulatory framework in relation to the distribution and sale of coal in the State.
In particular, the Regulations require that all bituminous coal sold and used outside smoky coal ban areas for residential use must have a sulphur content of no more than 0.7%, which is lower than that in Northern Ireland and therefore bituminous coal supplied to Northern Ireland standards for sale on that market may not be sold in the State. Compliance with the Regulations is being enforced by local authorities. A verification mechanism, SWiFT 7, has been developed by the National Standards Authority of Ireland (NSAI) for the verification of sulphur content in coal. This provides for a robust mechanism to verify the sulphur content of coal to national standards. Suppliers who produce and supply solid fuels in contravention of the Regulations are subject to investigation and prosecution under the Air Pollution Act by local authorities charged with enforcing the regulations and preventing such supply.
Budget 2013 commenced the application of carbon tax to solid fuels but I chose not to introduce the carbon tax on solid fuels until after the 2012/2013 winter period and opted to introduce the tax in two phases i.e. €10 per tonne of CO2 from 1st May 2013 and a further €10 per tonne of CO2 from 1st May 2014 thus bringing the carbon tax on solid fuels in line with that on all other fossil fuels, i.e. at €20 per tonne of CO2.
The introduction of Carbon Tax was about sending a price signal that there is a cost associated with the consumption of fossil fuels to the detriment of the environment. In this regard solid fuels have the highest carbon content of all fossil fuels. As a result they are considered the dirtiest fuels and given the environmental impact it is important that they are taxed.
The provisional carbon tax receipts for 2014 are €385.2m.
Coupled with the long lead in period to the implementation of carbon tax on solid fuels this Government has also provided, through the Sustainable Energy Authority of Ireland, generous grants via Better Energy Homes and also provides home energy upgrades free of charge to vulnerable households via Better Energy Warmer Homes to reduce dependance on combustion of fossil fuels for home heating. In 2014 the Better Energy programme provided €53m grant support towards €118m energy upgrade works.
Accordingly I do not intend to review the rate of carbon tax.
212. Deputy Finian McGrath asked the Minister for Finance if he will provide an update on cases of tax evasion, in particular, those cases involving persons who had accounts in the HSBC Bank in Switzerland, and who had circumvented tax laws here by not declaring these accounts; and if he will make a statement on the matter. [6688/15]
View answer228. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the amount recovered by the offshore assets group in the Revenue Commissioners in each year since it was set up in 2001; and if he will make a statement on the matter. [7027/15]
View answer229. Deputy Michael McGrath asked the Minister for Finance if the offshore assets group in the Revenue Commissioners is conducting a special investigation into the activities of a bank (details supplied), in respect of an outstanding tax matter for its Irish resident clients; and if he will make a statement on the matter. [7028/15]
View answer230. Deputy Michael McGrath asked the Minister for Finance if any criminal prosecutions have occurred in respect of tax evasion by Irish resident clients of a bank (details supplied); and if he will make a statement on the matter. [7029/15]
View answerI propose to take Questions Nos. 212 and 228 to 230, inclusive, together.
I am advised by the Revenue Commissioners that the issue of offshore accounts held with the HSBC Bank has its origin in information on account holders in Switzerland which came into the possession of the French authorities in December 2009.
The Revenue Commissioners wrote to the relevant French fiscal authorities in March 2010, when they became aware that the French Government may have obtained information in relation to bank accounts held with HSBC Bank in Geneva. That communication expressed an interest in any such information which related to Irish residents, and requested that the French authorities exchange this information under the provisions of the Ireland/France Double Taxation Agreement and EU Mutual Assistance arrangements.
On 23 June 2010 the French authorities responded positively to this request and provided details to Revenue in relation to bank accounts, purported to be held with HSBC Bank, Geneva, that had been linked to Irish nationals or to addresses in Ireland.
To date Revenue has initiated thirty three investigations as a direct result of the data received. As a result of these investigations twenty settlement payments were made, of which four were made by legal entities. Overall, the total amount recovered to date as a result of these investigations and subsequent settlements is €4,559,371,while a further €174,442 has been received as payments on account in two ongoing investigations.
Where the relevant publication criteria were met, publication appeared three months after the end of the quarter in which a settlement was accepted.
On the basis of the data provided by the French authorities and the subsequent investigations that were conducted, Revenue also took action, in any case where sufficient admissible evidence was available, to bring a criminal prosecution in relation to any identified tax offences. To date, three persons have been convicted of such offences and fines ranging from tax €4,000 to €25,000 have been imposed by the courts. A further case remains under criminal investigation.
Revenue's Offshore Assets Group continues its work to ensure that persons who operate offshore account are pursued for any undeclared tax liability arising on both source deposits and interest and income arising therefrom. The yield from its investigations exceeds €1 billion: details of the yield for each year since 2001 are given in the following table.
|
Year |
€ million |
|
2001 |
€0.03 |
|
2002 |
€1.31 |
|
2003 |
€150.07 |
|
2004 |
€562.00 |
|
2005 |
€83.50 |
|
2006 |
€55.30 |
|
2007 |
€54.10 |
|
2008 |
€29.00 |
|
2009 |
€18.30 |
|
2010 |
€8.00 |
|
2011 |
€10.59 |
|
2012 |
€12.81 |
|
2013 |
€14.87 |
|
2014 |
€9.21 |
|
Total |
€1009.09 |
These figures reflect the total monies received by the Offshore Assets Group in the period 2001 to 2014 and include payments on account in relation to cases where settlements have not yet been finalised.
213. Deputy Noel Grealish asked the Minister for Finance if, in the event of a person over 70 years of age returning to Ireland from the United States of America, there is a cap on the capital funds transferred here; if there is a tax liability on same; and if he will make a statement on the matter. [6729/15]
View answerI am advised by the Revenue Commissioners that there is insufficient information provided to enable a conclusive answer to be given as to whether there is a tax liability in respect of the capital funds transferred here. In general, any capital amount transferred into the country by a person who became resident here would not be subject to capital gains tax unless the amount was derived from the disposal of certain specified assets, for example, land or buildings situated in this country. However, that person would be liable to income tax in respect of any income arising from any such capital amount from the time that he or she became resident in this country.
I suggest that the enquiry should be directed to the Revenue District dealing with the tax affairs of the person concerned.
215. Deputy Michael McGrath asked the Minister for Finance his plans to expand the mortgage arrears targets resolution programme, to include subprime mortgages; and if he will make a statement on the matter. [6743/15]
View answerThe Central Bank of Ireland has informed me that it is important to note that there is no such regulated category as "sub-prime lender". However, Retail Credit Firms are authorised to provide credit, in the form of cash loans, directly to individuals (these firms are not licensed to accept deposits). Some firms authorised in this category are mortgage lenders.
The Mortgage Arrears Resolution Targets (MART) were introduced in March 2013, as a prudential policy measure, to set progressively more demanding quantitative targets for specified Credit Institutions to process mortgage arrears cases and achieve sustainable outcomes. Retail credit firms, which are not authorised to accept deposits, are not subject to the prudential standards set out in the Central Bank's MART. However, the same consumer protection framework applies to retail credit firms as to other regulated lenders including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears (CCMA). MART targets for 2015 are under consideration by the Central Bank.
The CCMA sets out requirements for all mortgage lenders, including Retail Credit Firms, dealing with borrowers in arrears or pre-arrears on a mortgage loan which is secured by their primary residence (as defined). It provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each of their borrowers. The full text of the CCMA may be viewed at http://www.centralbank.ie/regulation/processes/consumer-protection-code/Documents/2013%20CCMA.pdf. The Central Bank monitors Retail Credit Firms' treatment of borrowers under the CCMA.
A register of all Retail Credit Firms is available on the Central Bank website at the following link:
http://registers.centralbank.ie/DownloadsPage.aspx
216. Deputy Michael McGrath asked the Minister for Finance if, further to Parliamentary Question No. 27 of 4 February 2015, he will provide details of the meetings he or officials of his Department have had in relation to private equity funds; the dates on which these meetings took place; and if he will make a statement on the matter. [6750/15]
View answerAs stated in my response to Parliamentary Question No. 27, as part of our broader efforts to encourage inward investment into Ireland in the wake of the financial crises, stakeholders across the Irish system, including the banks, NAMA, IBRC, the IDA, the NTMA as well as my officials and occasionally myself, do meet with investors interested in investing in Ireland including through the acquisition of loan or property assets and the establishment of business enterprises in Ireland.
This has included occasional meetings with representatives of private equity funds who have purchased or may be interested in purchasing loans and assets from NAMA and other Irish sellers.
Such discussions do not involve the discussion of specific sales processes or specific assets but rather provide these investors with the opportunity to communicate their broader interests in and investment proposition regarding Ireland, their plans for further investment and potential for local business development and job creation. They also provide increased visibility regarding Ireland's relative attractiveness as destination for foreign capital investment.
The list below sets out meetings with private equity firms interested in NAMA since the beginning of 2014 attended by Department of Finance officials. As previously stated, the topics discussed at these meetings would have been varied, ranging from broad interests in investment in Ireland to discussions regarding NAMA, IBRC, REIT framework, the construction sector and direct lending, among other topics. In addition, senior officials attend group meetings and conferences arranged by investment banks and stockbrokers as well as presenting at conferences.
|
Firm |
Meeting Dates |
|
Angelo, Gordon Europe LLP |
30-May-14 |
|
Apollo |
13-Feb-14 |
|
Ardstone Capital |
30-Oct-14 |
|
Broadhaven |
09-Sep-14; 24-Oct-14; 09-Jan-15 |
|
Canyon Capital |
17-Oct-14 |
|
Capital International |
6-Nov-14 |
|
Cardinal Capital |
26-Sep-14 |
|
CarVal |
18-Jun-14 |
|
Cerberus |
28-Mar-14 |
|
Corsair |
24-Sep-14; 19-Nov-14 |
|
Davidson Kempner |
26-Mar-14; 01-Jul-14 |
|
Highfield Capital |
29-Sep-14 |
|
Kildare Partners |
13-May-14; 18-Sept-14 |
|
King Street Capital |
10-Sep-14 |
|
KKR |
26-Feb-14; 16-Jul-14 |
|
Lone Star |
23-Jan-14; 28-Jan-14; 08-May-14; 26-Nov-14 |
|
Moore Capital |
16-Jan-14 |
|
Ping An |
11-Feb-15 |
|
Soros |
30-Oct-14 |
217. Deputy Regina Doherty asked the Minister for Finance if he will provide, in tabular form, the amount of value-added tax collected in County Meath from 1996 to 2011. [6775/15]
View answerI am informed by the Revenue Commissioners that the estimated receipts for VAT internal relating to businesses based in County Meath for the calendar years 2000 to 2011 is as set out in the following table. Information for earlier years or equivalent information for VAT on imports is not readily available.
|
Calendar Year |
Estimated VAT Internal for County Meath |
|
|
€m |
|
2000 |
97.0 |
|
2001 |
116.5 |
|
2002 |
146.2 |
|
2003 |
172.7 |
|
2004 |
198.6 |
|
2005 |
216.1 |
|
2006 |
258.6 |
|
2007 |
271.0 |
|
2008 |
247.8 |
|
2009 |
184.8 |
|
2010 |
185.3 |
|
2011 |
152.5 |
The relevant information for VAT receipts on a geographical basis is estimated on the basis of "bailiwick" (meaning the jurisdiction or boundaries within which Revenue Sheriffs, County Registrars or their officers operate for the purposes of enforcement of tax debt). Bailiwick broadly equates geographically with "county".
It should be noted that the amount of tax attributed to a county may not necessarily be an indication of economic activity in that county. The liability of a trader to VAT is generally dealt with by reference to the location of the trader's registered office, even though the economic activity may be carried on in another county. The distribution of tax can also vary from year to year as businesses move premises.
218. Deputy Terence Flanagan asked the Minister for Finance the reason Allied Irish Banks, as a State-owned bank, was allowed to increase its variable mortgage prices, when the European Central Bank was lowering its rates (details supplied); and if he will make a statement on the matter. [6845/15]
View answerAs the Deputy will be aware the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the institutions or their management decisions. These documents are published on the Department of Finance website. I must ensure that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as assets to the State.
Neither the Central Bank nor the Department of Finance has a statutory function in relation to interest rate decisions made by individual lending institutions at any particular time. It should also be noted that the Relationship Frameworks specifically reference decisions regarding pricing as being commercial decisions for the banks.
By way of background, the Deputy should be aware that in recent years in order to fund its mortgages, AIB and the other banks had to borrow at wholesale and deposit rates which were much higher than the prevailing ECB base rate and the banks were unable to pass through ECB reductions to customers as they had an obligation to lend at rates that were economically sustainable.
It is worth noting that as funding conditions and profitability have improved at AIB, this pressure has eased. Indeed the bank announced in October 2014 that it was reducing the standard variable rate for mortgage customers by 0.25% from December 2014. This change in rates was for both new and existing customers.
219. Deputy Michael McGrath asked the Minister for Finance if recourse is open to persons who purchased endowment mortgages a number of years ago, and who feel they were mis-sold the product by the financial institution concerned; and if he will make a statement on the matter. [6869/15]
View answerThe Financial Services Ombudsman's Bureau was established under the Central Bank and Financial Services Authority of Ireland Act, 2004. The legislation provides for an independent, impartial investigation and resolution of disputes between consumers and financial service providers.
This legislation also provides the Financial Services Ombudsman with various powers in order to determine jurisdiction on a complaint. Included in this is a statutory timeframe, Section 57BX (3)(b) provides:-
"A consumer is not entitled to make a complaint if the conduct complained of - occurred more than 6 years before the complaint is made."
The legislation prohibits the Financial Services Ombudsman from examining any aspect of a complaint where the conduct being complained of occurred more than 6 years from receipt of the Complaint in his Office. The Financial Services Ombudsman has no discretion in relation to the 6 years rule.
As the Deputy may be aware, my Department is currently progressing the amalgamation of the Offices of both the Financial Services Ombudsman and the Pensions Ombudsman. A Steering Group chaired by my Department with representatives from the Financial Services Ombudsman, the Pensions Ombudsman, the Departments of Public Expenditure and Reform and Social Protection meets as required to consider the best way to progress the amalgamation.
The question of the timeframe under which complaints can be reviewed is a policy matter which will be considered as the legislation to effect the amalgamation is being developed. I am of course mindful of the need to provide the necessary protection to the consumer over the longer term. However, the issues in this regard are complex involving a range of considerations including the interface with the Statute of Limitations, existing consumer protection laws, complaints mechanisms and the availability of records.
