Thursday, 28 May 2015

Written Answers Nos. 71 - 80

IBRC Liquidation

Questions (71)

Colm Keaveney

Question:

71. Deputy Colm Keaveney asked the Minister for Finance further to Question No. 285 of 12 May 2015, if he will provide details of the competitive sales process devised by the special liquidators; if performing borrowers were allowed to bid on their loans as part of the liquidation process; the number of the successful bids that were for less than 100% of the value of the loans; the difference, in millions of euro, between the value of these loans and the amount paid by the successful bidders in the liquidation process; and if he will make a statement on the matter. [21087/15]

Written answers

Minister for Finance

As the Deputy is aware, for operational reasons the loan assets (totalling €21.7 billion) of Irish Bank Resolution Corporation Limited (in Special Liquidation) (IBRC) were originally divided into six portfolios: Evergreen, Sand, Rock, Salt, Stone & Pebble.

Prior to establishing the sales processes the Special Liquidators corresponded with borrowers and sought representations regarding how their loans should be sold.  The Special Liquidators then gave due consideration to the representations made by the borrowers and professional advice received in devising each of the sales processes. The first sales process of these portfolios completed in July 2014. Following instructions from the Minister for Finance, NAMA were no longer obliged to purchase the unsold IBRC assets at their individual valuation as previously envisaged, as the expected proceeds to be raised from the sale of the IBRC loan assets were to be sufficient to fully repay the IBRC debt to NAMA.

The Special Liquidators then devised a further sales process in respect of the final €2.5 billion worth of loans left unsold from the first process (as well as IBRC s stake in the IBRC Assurance Company and the NAMA subordinated bonds) which was initiated in August 2014.  Again, the Special Liquidators corresponded with those borrowers of the unsold loan assets and sought representations of how their loans should be sold. Having given due consideration to the representations made by the borrowers of the remaining loan assets and the professional advice received, the Special Liquidators divided the remaining loan assets into four portfolios: Quartz, Pearl, Amber and Amethyst. Project Opal was the sale IBRC's stake in IBRC Assurance Company and Project Jade was the sale of IBRC holding of NAMA subordinated bonds. The sale of each of these portfolios completed in March 2015.

No IBRC borrower was provided with an exclusive opportunity to buy back their loan(s) at a discount or was offered an incentive discount on their loans to refinance their loans.  However, as per my answer to Parliamentary Question No. 285 of 12 May 2015, 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.

The Special Liquidators can confirm that no loans were sold for less than their valuation price (as per the Ministerial Instruction) however they will not be providing information on the prices achieved in the sale process as this is commercially sensitive information.

I would also point out that the progress reports on the Special Liquidation of IBRC, published in June 2014 and March 2015, are available on the Department of Finance website which provide further detail around the sales processes and the progress of the special liquidation more generally.

Banking Sector

Questions (72, 75, 76)

Pearse Doherty

Question:

72. Deputy Pearse Doherty asked the Minister for Finance if he will increase the bank levy on specific banks as opposed to a general increase; and if he will make a statement on the matter. [21091/15]

Michael McGrath

Question:

75. Deputy Michael McGrath asked the Minister for Finance if the representatives of all six banks he met in relation to variable mortgage rates have committed to an actual reduction in the standard variable rates; the time frame for this to happen; and if he will make a statement on the matter. [21220/15]

Michael McGrath

Question:

76. Deputy Michael McGrath asked the Minister for Finance his views that a bank which offers its variable mortgage rate customers a fixed rate which is lower than the current standard variable rate, but is not actually reducing its standard variable rate, is meeting the objective he has set in relation to mortgage rates; and if he will make a statement on the matter. [21221/15]

Written answers

Minister for Finance

I propose to take Questions Nos. 72, 75 and 76 together.

As the Deputies are aware, I met with senior management of Ireland's six main mortgage lenders last week. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks.

I outlined my view, that Standard Variable Rates being charged in the Irish market are too high.  There was agreement from all lenders that customers should have access to more competitive mortgage products as per my recommendation.

The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.

In addition to the issue of rates I also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.

The position of home owners who are in negative equity was also discussed and assurances were sought and received that these homeowners will be able to avail of options to reduce their monthly repayments.

Officials in my Department will review progress over the coming weeks and a follow up set of meeting with each of the six banks will take place in September in advance of the Budget. The issue of a penal banking levy in the Budget or powers for the Central Banks to regulate interest rates will be considered at that time if sufficient progress is not made.

IBRC Operations

Questions (73)

Colm Keaveney

Question:

73. Deputy Colm Keaveney asked the Minister for Finance if he was aware, at the time, that a significant shareholder in Siteserv was acting as a mediator between the Irish Bank Resolution Corporation and a person (details supplied) in the months after the sale of Siteserv to that person and another person; and if he will make a statement on the matter. [21095/15]

Written answers

Minister for Finance

I am advised by my officials that they are not aware of it being brought to the attention of either me or my officials that the person referred to in the question was acting as a mediator between IBRC and the other person whose details have been supplied in the question in the months after the sale of Siteserv.

Property Tax Collection

Questions (74)

Willie Penrose

Question:

74. Deputy Willie Penrose asked the Minister for Finance the way the non-payment of local property tax will be recovered; the level of interest and penalties that may apply; and if he will make a statement on the matter. [21204/15]

Written answers

Minister for Finance

I am advised by Revenue that compliance rates of 96% in respect of Local Property Tax (LPT) were achieved for both 2013 (Half Year) and 2014. The compliance rate for 2015 (year to date) is 94%, which is ahead of target at this point.

The minority of property owners who failed to meet their LPT obligations can be subjected to a range of debt collection/enforcement options as provided for by Section 120 of the Finance (Local Property Tax) Act (as amended). These options include:

- Mandatory deduction from salary, pension or certain Government payments.

- Referral of the outstanding debt to a Sheriff for collection.

- Referral of the outstanding debt to a solicitor for action through the Courts

- Attachment of a bank account or 3rd party debt (owing to the defaulting property owner).

- A surcharge on Income Tax, Corporation Tax or Capital Gains Tax Returns.

- Withholding Tax Clearance certification.

- Offset of any refunds due in other taxes to outstanding LPT/ HHC liabilities.

Interest at a rate of 8% per annum may also be charged on outstanding or late payments as provided for by Section 149 of the Act. 

Part 14 of the Act provides for the imposition of penalties, to a maximum of €3,000, where a property owner does not submit an LPT Return, fails to complete a Return, does not amend a Return when requested to do so (by Revenue) or knowingly makes a false statement for the purposes of reducing the liability.

The total outstanding liability (including tax, interest and penalties) automatically attaches as a charge on the property which as a consequence can not be sold or transferred until the debt is paid.

Finally Revenue has assured me that before any debt collection/enforcement action is started in respect of any tax, including LPT, the defaulting taxpayer is given at least one opportunity to engage and agree mutually acceptable payment arrangements. The debt collection process only starts when there is no meaningful engagement by the taxpayer or where the terms of any agreement are not adhered to.

Questions Nos. 75 and 76 answered with Question No. 72.

Office of Public Works Properties

Questions (77)

Michael McGrath

Question:

77. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if the Office of Public Works plans to sell its mobile telecommunications assets; the office's plans to invest in, develop, expand or dispose of these assets; and if he will make a statement on the matter. [21203/15]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The Commissioners of Public Works are committed to maintaining/increasing the income stream from mobile phone operators as part of their overall property asset management arrangements.

The assets that generate this income form an integral part of the State Property Portfolio managed by the Commissioners, e.g. State owned buildings, Garda masts, etc., and therefore they have no plans to dispose of these assets at this time.

Indeed, the Commissioners are assessing the future use of the State Property Portfolio in the telecommunications sector including an assessment of the potential for new sites to be brought to the market. In response to the consolidation in the telecommunications market, my Office is engaging with the mobile phone operators to address matters arising from this development.

Job Retention

Questions (78)

Dara Calleary

Question:

78. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the actions he has taken to protect jobs at a company (details supplied) in County Wexford; and if he will make a statement on the matter. [21059/15]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

I understand that the closure of the supermarket in question related to a private commercial dispute between the supermarket and the owner of the shopping centre in which it is located. I understand further that the employees of the supermarket had been informed that they should report for work in the normal way as rostered and that they would continue to be paid. I welcome the fact that the supermarket has now re-opened. While I have no function in matters of private commercial dispute, I would urge all concerned to ensure that the matters of dispute are resolved in a lasting way, in the interests of all of the businesses affected, their employees and their customers. Finally, in the interests of good workplace relations, I would encourage the company in question to keep its employees fully informed of developments in the matter.

Job Retention

Questions (79)

John Browne

Question:

79. Deputy John Browne asked the Minister for Jobs, Enterprise and Innovation the actions he has taken to protect jobs at a supermarket (details supplied) in County Wexford; and if he will make a statement on the matter. [21071/15]

Written answers

Minister of State at the Department of Jobs, Enterprise and Innovation

I understand that the closure of the supermarket in question related to a private commercial dispute between the supermarket and the owner of the shopping centre in which it is located. I understand further that the employees of the supermarket had been informed that they should report for work in the normal way as rostered and that they would continue to be paid. I welcome the fact that the supermarket has now re-opened. While I have no function in matters of private commercial dispute, I would urge all concerned to ensure that the matters of dispute are resolved in a lasting way, in the interests of all of the businesses affected, their employees and their customers. Finally, in the interests of good workplace relations, I would encourage the company in question to keep its employees fully informed of developments in the matter.

Employment Appeals Tribunal

Questions (80)

Clare Daly

Question:

80. Deputy Clare Daly asked the Minister for Jobs, Enterprise and Innovation the procedures with regard to the making of transcripts at the employment tribunal hearings; if stenographer's records are taken and maintained in all cases; the procedure for making these records available to participants in cases and to the general public; and the location where these records are maintained. [21089/15]

Written answers

Minister for Jobs, Enterprise and Innovation

The Employment Appeals Tribunal is independent in the exercise of its quasi-judicial function and I have no direct involvement in its day to day operations.

I am informed by the Employment Appeals Tribunal that it does not engage the services of stenographers at its hearings. Parties to a hearing may, however, engage such services for the purpose of making transcripts and all costs in relation to this are borne by the party who engages the service providers. There are no provisions in relation to making such records available to participants or the general public. However, if a party seeks to introduce any part of a transcript in evidence, the ordinary rules which apply when a document is being used in cross examination apply and in such circumstances the Tribunal would normally request that the relevant extract be made available to the Tribunal and the parties concerned. In the event of transcripts being made available to the Tribunal, these records would normally be maintained by the Employment Appeals Tribunal, 65A Adelaide Road, Dublin, 2.