Pearse Doherty
Question:271. Deputy Pearse Doherty asked the Minister for Finance the latest estimate for the cost of the new Central Bank of Ireland building; and if he will make a statement on the matter. [18218/15]
View answerCentral Bank of Ireland Properties
Questions (271)
Written answers
Under section 6B of the Central Bank Act 1942, as amended, the Central Bank Commission is responsible for administering the provision of accommodation and office and other equipment with a view to enabling the Central Bank to perform and exercise its functions and powers. As Minister for Finance I have no role in the matter.
The Central Bank has a dedicated page on its website (http://www.centralbank.ie/about-us/newbuilding/Pages/Ournewbuilding.aspx) which provides updates on the progress of the project, including the project costs. I have been informed by the Cental Bank that it will continue to provide updates to the website as the project develops. Recent project updates include the appointment of Walls Construction Ltd as Main Contractor on 13 April 2015. Pre-construction works began on site in April 2015, with construction works commencing in early May 2015.
I have been informed by the Central Bank that the total estimated development costs are approximately €140m (inclusive of VAT) which includes land acquisition costs, development levies and estimates for construction costs, furniture fittings and IT/AV works, design team professional fees, insurance and other related costs.
Central Bank of Ireland Properties
Questions (272)
Pearse Doherty
Question:272. Deputy Pearse Doherty asked the Minister for Finance if he will provide details of the properties belonging to the Central Bank of Ireland; of all other properties where the Central Bank of Ireland business is carried out, for example, data centres and so on, inside and outside the State. [18219/15]
View answerWritten answers
Under section 6B of the Central Bank Act 1942, as amended, the Central Bank Commission is responsible for administering the provision of accommodation and office and other equipment with a view to enabling the Central Bank to perform and exercise its functions and powers. As Minister for Finance I have no role in the matter.
I have been informed by the Central Bank that it owns 4 properties in Dublin City and 1 property in Sandyford. In addition, there are 2 leasehold properties in Dublin City at which ordinary Central Bank business is carried out.
The Central Bank has also informed me that in common with other State agencies, it has contracted arrangements with some third-party suppliers (including 3 data centres, based at various locations in Ireland). However all Central Bank work is directed and controlled from the premises listed in the schedule below.
Schedule of Central Bank buildings
Properties owned by the Central Bank:
|
Postal Address |
Rates Address |
|
PO Box 559Central Bank of Ireland, Dame Street, Dublin 2 |
41a,42,43,44,45 Dame Street Dublin 2 |
|
PO Box 559Central Bank of Ireland, Dame Street, Dublin 2 |
9 College Green Dublin 2 |
|
PO Box 559Central Bank of Ireland, Dame Street, Dublin 2 |
6,7,8 College Green Dublin 2 |
|
Central Bank of Ireland North Wall Quay, Dublin 1 |
|
|
Central Bank of Ireland PO Box 61, Sandyford Dublin 16 |
Sandyford Road Dundrum Dublin 16 |
Properties at which Central Bank business is carried out:
|
Central Bank of Ireland, PO Box 11517, Spencer Dock, North Wall Quay, Dublin 1 |
3 Spencer Dock Block R1 North Wall QuayDublin 1 |
|
Central Bank of Ireland, Block D, Iveagh Court, Harcourt Road, Dublin 2 |
Block D Iveagh Court 9/15 Harcourt Road Dublin 2 |
Central Bank of Ireland Staff
Questions (273)
Pearse Doherty
Question:273. Deputy Pearse Doherty asked the Minister for Finance the procedure under which the next Governor of the Central Bank of Ireland will be chosen; the remuneration package that will be offered; and if he will make a statement on the matter. [18233/15]
View answerWritten answers
Section 19 of the Central Bank Act 1942, as amended, sets out the rules and procedure for the appointment of the Governor of the Central Bank. Section 19 provides that the Governor is to be appointed by the President on the advice of the Government. The term of appointment is seven years. While the Governor has announced his intention to retire, the details of the date of retirement are yet to be confirmed. A process for appointment of a new Governor will be commenced shortly.
Regarding the remuneration package, the Deputy will note that Section 19(1) provides that remuneration, allowances and conditions of service are determined by the Central Bank Commission. The Central Bank provides details of the remuneration of executive and non-executive directors of the Central Bank Commission in its Annual Report. The recently published Central Bank Annual Report 2014 notes that the remuneration of the current Governor is €254,048 of which Governor Honohan gifted €57,048, under Section 483 of the Taxes Consolidation Act 1997, to me as Minister for Finance. This resulted in a net remuneration of €197,000 for 2014.
IBRC Operations
Questions (274)
Peadar Tóibín
Question:274. Deputy Peadar Tóibín asked the Minister for Finance if he is aware of any person who was a shareholder of Siteserv who would have had access to Irish Bank Resolution Corporation information concerning the sale of Siteserv, and-or who would have information around Irish Water's Siteserv tender. [18272/15]
View answerWritten answers
Neither I nor officials in my Department are aware of any person who was a shareholder in Siteserv who would have had access to IBRC information concening the sale of Siteserv, and/or who would have had information regarding the Irish Water's tender.
NAMA Portfolio Value
Questions (275)
Pearse Doherty
Question:275. Deputy Pearse Doherty asked the Minister for Finance the current value of assets and loans being managed by the National Asset Management Agency in 2015. [18302/15]
View answerWritten answers
I refer the Deputy to NAMA's Section 55 Quarterly Accounts for the period to end-September 2014, which show that the carrying value of loans and receivables after impairment at 30 September 2014 was €14.575 billion. This comprised gross loans and receivables for €18.147 billion less impairment of €3.571 billion. Updated figures will be included in NAMA's Annual Report and Financial Statements for 2014, which will be published at the end of May.
NAMA Operations
Questions (276, 277, 278)
Pearse Doherty
Question:276. Deputy Pearse Doherty asked the Minister for Finance the volume of National Asset Management Agency loan and asset sales in 2014. [18303/15]
View answerPearse Doherty
Question:277. Deputy Pearse Doherty asked the Minister for Finance the target of loan and asset disposals by the National Asset Management Agency in 2015 and that achieved in 2014. [18304/15]
View answerPearse Doherty
Question:278. Deputy Pearse Doherty asked the Minister for Finance the value of the National Asset Management Agency's loans and assets being disposed of, on a monthly basis, over the past year, and by year from the establishment of the Agency to date. [18305/15]
View answerWritten answers
I propose to take Questions Nos. 276 to 278, inclusive, together.
Information on NAMA-related loan and asset disposals more generally is included in the Agency's annual accounts for 2010, 2011, 2012 and 2013 and the Agency's quarterly accounts which are published in accordance with Section 55 of the NAMA Act. NAMA's annual and quarterly accounts are publicly available on the Agency's website, www.nama.ie.
NAMA advises that to end-2014 it had generated more than €23.5 billion in total cash, €18.7 billion of which was generated through the sale of loans and property and other assets held as security. Asset and loans sales by NAMA and its debtors/receivers generated €0.4 billion in cash proceeds in 2010, €3.7 billion in 2011, €3 billion in 2012, €3.7 billion in 2013 and €7.8 billion in 2014. The particularly strong performance in 2014 enabled NAMA to redeem €9.1 billion of senior debt in that year. I am advised by NAMA that more detailed information on loan and asset disposals in 2014 will be included in the Agency's Annual Report and Financial Statements for that year, which is scheduled to be published before the end of May.
The strategy and timing of sales is a matter for NAMA in accordance with its statutory independent commercial mandate and I have no role as Minister for Finance in this respect. The Deputy will be aware that the NAMA Chief Executive has stated that NAMA is aiming to redeem a cumulative 80% (€24 billion) of its senior debt by the end of 2016. NAMA's asset management and asset recovery activities, including loan and asset sales, in 2015 and 2016 will be aimed at achieving this target.
NAMA Investment Funds Tender
Questions (279)
Pearse Doherty
Question:279. Deputy Pearse Doherty asked the Minister for Finance the current status of the National Asset Management Agency's development funding; the amount the agency has at its disposal for the remainder of its existence; the amount of the funding it intends to invest in 2015; the amount that has been invested to date by year; and if he will make a statement on the matter. [18306/15]
View answerWritten answers
I am advised by NAMA that it has advanced Irish development cash funding of more than €1 billion to date: €137m in 2010; €144m in 2011; €117m in 2012; €159m in 2013; €485m in 2014; and €46m to date in 2015.
NAMA's current funding activities are focused in particular on meeting current and prospective shortages in the Dublin office and residential sectors. In this respect, NAMA is actively delivering on its commitment to facilitate the construction of 4,500 new residential properties in the Dublin area in the three years to end 2016 and on the timely delivery of key Grade A office, retail and residential space in the Dublin Docklands Strategic Development Zone (SDZ) and wider central business district.
In terms of annual projections of funding, the Deputy will appreciate that the timing of funding drawdowns is predicated on a wide-range of factors, including the achievement of appropriate planning, the resolution of infrastructure and other barriers to project commencement, and the achievement of agreed commercial milestones, including pre-sales and pre-lets. For this reason, it is not possible to project how much development funding will be drawn by debtors and receivers in any given year. NAMA has indicated however that, if required, it could advance a further €3 billion over the remainder of its life to support the delivery of Grade A office space and residential development in Dublin and in other key urban centres in which debtor and receiver properties are located. However, NAMA is open to join venture and partnership arrangements which could involve other parties meeting at least some of that funding requirement.
I am advised by NAMA that detailed information on its development funding activities will be included in its Annual Report and Financial Statements for 2014 which are scheduled for publication at the end of May.
NAMA Portfolio
Questions (280)
Pearse Doherty
Question:280. Deputy Pearse Doherty asked the Minister for Finance if he will provide a breakdown, by geographical area and by commercial and residential sector, of the remaining existing National Asset Management Agency's assets and loans on its books. [18307/15]
View answerWritten answers
I am advised by NAMA that a breakdown of the Agency's property security by geography and sector is available in the Annual Report and Financial Statements for 2013. An updated breakdown of the Agency's will be included in its Annual Report and Financial Statements for 2014, which is scheduled to be published at the end of May.
NAMA Portfolio
Questions (281)
Pearse Doherty
Question:281. Deputy Pearse Doherty asked the Minister for Finance his views on the use of National Asset Management Agency assets, to date, for social and economic value to the State, listing the assets used, their purposes, their value on the agency's books and his plans for their future use. [18308/15]
View answerWritten answers
I refer the Deputy to NAMA's website, www.nama.ie/social-initiatives/, which contains extensive information on how NAMA, within the context of its overriding commercial objective, seeks to manage its portfolio in a manner that complements the objectives of Government departments, local authorities, State agencies and other public bodies. NAMA's work in this respect includes providing homes for social housing, making properties available for schools and other public uses, working with IDA Ireland to identify suitable properties for companies investing in Ireland, and agreeing rent abatements with businesses to support jobs in the retail sector. NAMA is statutorily obliged to conduct all such engagements by reference to its overriding commercial mandate, as set out in Section 10 of the NAMA Act.
Tax Code
Questions (282)
Terence Flanagan
Question:282. Deputy Terence Flanagan asked the Minister for Finance his views on correspondence (details supplied) regarding rental income; and if he will make a statement on the matter. [18313/15]
View answerWritten answers
The details supplied with this question suggest that gross rental income from lettings is taxed rather than the profits arising from the lettings. This is not the case.
In that regard, I am informed by the Revenue Commissioners that rental income for tax purposes 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 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 Private Residential Tenancies Board registration requirements for all tenancies that existed in relation to the property in the relevant year); and
- the 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.
Credit Review Office Remit
Questions (283)
Pearse Doherty
Question:283. Deputy Pearse Doherty asked the Minister for Finance his plans to empower the Credit Review Office to review rejected insolvency cases; and if he will make a statement on the matter. [18318/15]
View answerWritten answers
The Deputy will be aware that responsibility for the implementation of personal insolvency legislation rests with my colleague, Frances Fitzgerald TD, Minister for Justice and Equality.
The Deputy will also be aware that the Taoiseach has previously announced that the Government is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions. Given the importance of the issue, his Department is co-ordinating the response across the various Government Departments and agencies and I anticipate that a detailed announcement will be forthcoming shortly.
Mortgage Arrears Proposals
Questions (284)
Pearse Doherty
Question:284. Deputy Pearse Doherty asked the Minister for Finance his or the Central Bank of Ireland's plans to amend the code of conduct on mortgage arrears; and if he will make a statement on the matter. [18320/15]
View answerWritten answers
The effective management of the mortgage arrears issue is an area that remains under continuous review. More and concerted action can be undertaken by the banks to assist customers in arrears. As the Deputy is aware the Taoiseach has previously announced that the Government is considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions. Given the importance of the issue, his Department is co-ordinating the response across the various Government Departments and agencies and I anticipate that a detailed announcement will be forthcoming shortly.
As the Deputy will be aware, the Central Bank carried out an extensive review of the Code of Conduct on Mortgage Arrears (CCMA) in 2013. The main objectives of this review were to ensure that the CCMA continued to provide a strong framework to protect borrowers in mortgage arrears and also to ensure that it enabled the delivery of long term, affordable and sustainable solutions between the lender and the borrower.
The revised CCMA, which came into effect on 1 July 2013 reflects the outcome not only of the public consultation process undertaken during the review, but also the Central Bank's ongoing monitoring of lenders' practices as well as research and inspections of firms.
I am informed by the Central Bank that it has commenced a themed inspection of compliance with the CCMA. This themed inspection is building on project work already carried out by the Central Bank on mortgage arrears, including the Mortgage Arrears Resolution Strategies (MARS) project; Mortgage Arrears Resolution Targets (MART) audits; the revision of the CCMA in 2013; the Revised CCMA Implementation themed review, which included on-site visits; and CEO engagements on mortgage arrears, as well as on-going supervisory engagement with individual lenders.
This current themed inspection commenced in quarter four of 2014 and includes on site inspections of a number of regulated mortgage lenders to examine the processes in place around certain provisions of the CCMA and the controls lenders have in place to ensure compliance with those processes and the CCMA. I have been informed by the Central Bank that it plans to publish the results of this inspection at the end of the first half of 2015 and I look forward to this publication.
IBRC Loans
Questions (285)
Colm Keaveney
Question:285. Deputy Colm Keaveney asked the Minister for Finance if he will confirm if borrowers of the Irish Bank Resolution Corporation were offered an incentive discount on their loans to refinance or buy their loans back from the special liquidators before the special liquidators had to put the loans up for auction; if so, the number of borrowers who were granted this discount; and if he will make a statement on the matter. [18365/15]
View answerWritten answers
The Special Liquidators have confirmed to officials in my Department that no borrowers were offered an incentive discount on their loans to refinance or buy their loans back from IBRC.
Notwithstanding the above, following the Special Liquidators' due process and as part of the competitive sales processes devised by the Special Liquidators, it was possible for some borrowers to bid for their own loans.
Company Liquidations
Questions (286)
Peadar Tóibín
Question:286. Deputy Peadar Tóibín asked the Minister for Finance if he will instruct the Sitserv liquidator to make public the Siteserv share register to include the names of persons who bought shares through brokers, the companies to which they are associated for the purposes of purchasing the shares, and the date on which a person became or ceased being a shareholder. [18423/15]
View answerWritten answers
I understand the Siteserv Liquidator is co-ordinating access to the share register, which is available to view at the offices of Computershare, who provided share registration services to Siteserv. I would suggest that the Deputy contact the Siteserv Liquidator directly to access this information.
Departmental Bodies Abolition
Questions (287)
Fergus O'Dowd
Question:287. Deputy Fergus O'Dowd asked the Minister for Finance the number of agencies, quangos or other bodies within, funded by or established by his Department which have been scrapped, merged or reduced since this Government was formed; the amount saved in each case; the reduction in staff as a result; and if he will make a statement on the matter. [18434/15]
View answerWritten answers
In response to the Deputy's question Sealuchais Árachais Teoranta (SAT) was established in 1985 to effect the State ownership of Icarom. Following the completion of the Icarom administration in 2013, wind up procedures began for Icarom. SAT formally completed its Voluntary Strike Off on 05 October 2014 and the company is now dissolved.
SAT had no paid staff members. A&L Goodbody provided company secretarial service to SAT. This service was invoiced to the Department of Finance at an approximate cost of €2,900 per year.
|
Name of body |
Term of body |
Number of Members |
Annual Fee |
Total Annual Costs |
|
Sealuchais Arachais Teoranta |
1985 - 2014 |
0 |
0 |
€2,900 per year approx. for secretarial services |
In relation to the Credit Union Advisory Committee (CUAC), the initial committee appointed in 2010 ended its term in 2013. The new Committee established in 2014 has a reduced number of members. The details of the savings made are in the table below.
|
Name of body |
Term of body |
Number of Members |
Annual Fee |
Total Annual Costs |
|
Credit Union Advisory Committee (CUAC)* |
Appointed by the Minister for Finance under Section 180 of the Credit Union Act 1997 on 1 September 2010 - term ended 30 August 2013 |
7 (1 Chairman and 6 ordinary members) |
Annual Fee of €3,705 for Chairman and €2,470 for ordinary member. |
€18,525 |
|
New committee established on 22 September 2014 by the Minister for Finance under Section 180 of the Credit Union Act 1997 |
3 (1 Chairman and 2 ordinary members) |
Annual Fee of €3,705 for Chairman and €2,470 for ordinary member |
€8,645 |
|
|
Total annual saving |
€9,880 |
* Please note that CUAC is an advisory committee set up to advise the Minister on Credit Union issues.
The National Treasury Management Agency (Amendment) Act 2014 simplified and streamlined the governance structures of the National Treasury Management Agency (NTMA). While the new governance structures will not see a reduction in staff numbers the Act reconstitutes the NTMA as a body with members who will have over-arching responsibility for all of the NTMA's functions (excluding National Asset Management Agency (NAMA) and the Strategic Banking Corporation of Ireland (SBCI) which will continue to have their own separate boards).
The reconstituted Agency consists of six appointed Members and three ex-officio Members (the Chief Executive of the NTMA and the Secretaries General of the Department of Finance and the Department of Public Expenditure and Reform). Pursuant to the Act the appointed Members shall be paid remuneration as determined by the Minister for Finance which has been set at €45,000 for the Chairperson and €30,000 for the Ordinary Members. The Chairperson of the Agency has waived his remuneration.
The following corporate bodies and committees will no longer be required under the new structure and have been/will be dissolved: the NTMA Advisory Committee, the National Pensions Reserve Fund (NPRF) Commission, the National Development Finance Agency (NDFA) Board and the State Claims Agency (SCA) Policy Committee.
The table below sets out the Board/Committee structure and remuneration which were applicable to appointees. Ex officio and other Members who were appointed on the basis of their position in the public service did not receive any payment.
|
Body/Committee |
Pay |
|
NTMA Advisory Committee Chair and 6 ordinary Members
|
Chairperson: €45,000 Ordinary Member: €22,500 |
|
NDFA Board Chair and 7 ordinary Members
|
Chairperson: ex-officio position Ordinary Member: €12,600 |
|
NPRF Commission Chair and 6 ordinary Members
|
Chairperson: €51,424 Ordinary Member: €34,283 |
|
SCA Policy Committee Chair and 6 ordinary Members |
Chairperson: €13,713.20 Ordinary Member: €9,142.20 |
Statutory Instrument 586 of 2014, effective 22 December 2014, reconstituted the Agency and dissolved the NTMA Advisory Committee and the State Claims Policy Committee. An order was signed by the Minister for Finance on 23 January 2015 which dissolved the Board of the National Development Finance Agency. Under transitional provisions, pending the transfer of all NPRF assets and liabilities to the Ireland Strategic Investment Fund, the National Pensions Reserve Fund Commission will consist of one Member, the Chief Executive of the NTMA.