Written Answers Nos. 90-99
90. Deputy Michael McGrath asked the Minister for Finance the number of National Asset Management Agency borrowers who have connection management agreements in place; and if he will make a statement on the matter. [12637/15]
View answerI am advised that NAMA is working on a consensual basis with 70% of its debtors by value. Consensual strategies include full restructure, partial restructure or connection management agreement (CMA), and support. Support is the most common consensual strategy requiring debtors to implement agreed milestones in relation to debt reduction without the need for either partial or full restructure. There are currently four CMAs in place across NAMA's loan book.
91. Deputy Michael McGrath asked the Minister for Finance if his attention has been drawn to limitations being placed by insurance companies on compensation to businesses for losses arising from cyber attacks; and if he will make a statement on the matter. [12639/15]
View answerIn my role as Minister for Finance I have responsibility for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland, as regulator, interfere in the pricing or provision of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are accepting and adequate provisioning to meet these risks. These are considered on a case by case basis.
Article 25 of S.I. No. 359/1994 European Communities (Non-Life Insurance) Framework Regulations, 1994 expressly prevents the Central Bank from requiring the prior approval of the pricing, or terms and conditions of an insurance product. Consequently, I am not in a position to direct insurance companies to remove limitations on cover arising from certain losses.
Officials from my Department have consulted Insurance Ireland about this matter and they have informed us that this type of cover is provided for in a specialised market and arranged on an individual basis. They have also added that this issue is not one on which they have received queries previously. Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Their service can be contacted at (01) 6761914 or by e-mail at iis@insuranceireland.eu.
94. Deputy Michael McGrath asked the Minister for Finance the cost of reducing capital gains tax to 30%; and if he will make a statement on the matter. [12644/15]
View answer95. Deputy Michael McGrath asked the Minister for Finance the cost of reducing capital acquisition tax to 30%; and if he will make a statement on the matter. [12645/15]
View answer96. Deputy Michael McGrath asked the Minister for Finance the cost of increasing all capital acquisition tax thresholds by 10% and 20% respectively; and if he will make a statement on the matter. [12646/15]
View answer97. Deputy Michael McGrath asked the Minister for Finance the cost of increasing the category B capital acquisition tax threshold to €40,000 and €50,000 respectively; and if he will make a statement on the matter. [12647/15]
View answerI propose to take Questions Nos. 94 to 97, inclusive, together.
I am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' new, enhanced, Statistics webpage:
http://www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy`s questions, detailed information on potential costs can be found in the post-Budget 2015 Ready Reckoner:
http://www.revenue.ie/en/about/statistics/ready-reckoners.pdf.
While the Ready Reckoner does not show all of the specific costings requested by the Deputy, other changes can be estimated broadly on a pro-rata basis with those displayed in the Reckoner.
This indicates that the potential estimated cost of reducing the current Capital Gains Tax rate from 33% to 30% would be of the order of €45 million.
The potential cost from reducing current Capital Acquisition Tax rate from 33% to 30% would be of the order of €33 million.
The potential cost of increasing all Capital Acquisition Tax thresholds by 10% would be of the order of €19 million, and by 20% would be of the order of €38 million.
The current threshold amount for category B is €30,150 and increasing this to €40,000 i.e., an increase of almost 33% would have a potential cost of €23 million while an increase to €50,000 would have a potential cost of €46 million.
All estimates are provisional and subject to revision. These estimates are based upon an assumption that there would be no behavioural impact of these changes. In addition, the costs shown from decreases in taxation on assets relating to property are subject to movements in the value of such assets.
In relation to the Capital Acquisition Tax costs shown above, it should be noted that these figures are tentative because some of the costs of increasing these reliefs would be offset by benefits not fully exceeding new threshold limits.
98. Deputy Michael McGrath asked the Minister for Finance the total fines imposed for smuggling and illegal selling of tobacco in 2014; the way this compares to 2013; and if he will make a statement on the matter. [12648/15]
View answerI am advised by the Revenue Commissioners that the number of criminal convictions for smuggling and illegal selling of tobacco in the years in question, and the total values of those fines, are as set out in the following table.
|
- |
2013 Number of Prosecutions |
Total Fines |
2014 Number of Prosecutions |
Total Fines |
|
Cigarette Smuggling |
56 |
€75,750 |
57 |
€108,969 |
|
Illegal Selling of Cigarettes |
45 |
€90,000 |
54 |
€118,250 |
99. Deputy Michael McGrath asked the Minister for Finance the amount paid by the National Treasury Management Agency and its group entities including the National Asset Management Agency for public relations services in the years 2012 to 2014; the amount paid out to individual firms for these services in each of the three years; the efforts that have been made by the National Treasury Management Agency and its group entities to reduce its spend on these services over the past three years; and if he will make a statement on the matter. [12649/15]
View answerThe NTMA have advised me that they do not maintain an internal press office. Instead, its internal communications resources are supported by an external service provider (appointed following a public procurement process) currently Gordon MRM - in order to offer a full press office and communications service (including out-of-hours contacts for the media). This press office and communications service provides support across all the NTMA's business areas: Debt Management, Ireland Strategic Investment Fund, National Development Finance Agency, State Claims Agency and NewERA. It also provides support to NAMA and the Strategic Banking Corporation of Ireland.
These arrangements were initially put in place during 2010 in light of a significant increase in the volume of domestic and international media queries being received by the NTMA and associated bodies. In September 2012 the NTMA retendered for the provision of these services. Following the tender evaluation process the NTMA awarded a new contract to Gordon MRM in December 2012.
The initial contract, in place to end 2012 was based on an hourly rate for services provided. During the term of this contract a 20% reduction in the hourly rate was agreed with effect from June 2011 until the end of the contract. The new contract, which commenced in January 2013, is based on a fixed fee.
Costs over the period 2012 to 2014 (ex VAT) are as follows: 2012 - €223,973 (of which €142,653 was charged to NAMA); 2013 - €159,826 (of which €78,926 was charged to NAMA); 2014 - €165,059 (of which €79,270 was charged to NAMA)
In the light of the sovereign debt crisis the NTMA also engaged Powerscourt a London based communications consultancy - for international communications initiatives in the funding and debt management area. Total costs (ex VAT) incurred for the provision of the services provided by Powerscourt were as follows: 2012 - €10,257; 2013 - €12,103.
