John Deasy
Question:258. Deputy John Deasy asked the Minister for Finance the number of appeals that have been heard each year since the Irish Financial Services Appeals Tribunal was established. [28240/15]
View answerFinancial Services Regulation
Questions (258)
Written answers
The total number of appeals determined by IFSAT since its inception is twelve. The total number of appeals currently outstanding is three.
It is not possible to allocate individual cases to specific calendar years but broadly speaking IFSAT has determined approximately two cases each year since it was established.
National Postcode System Implementation
Questions (259)
Noel Harrington
Question:259. Deputy Noel Harrington asked the Minister for Finance his plans to include the new Eircode postcode in all schemes and administrative roles operated by his Department; and if he will make a statement on the matter. [28315/15]
View answerWritten answers
The Office of the Paymaster General, which is part of my Department, makes payments of occupational pensions on an agency basis to retirees from the Civil Service and retirees from certain other public service bodies including pensions chargeable to the Central Fund. It is planned to transfer this activity later this year to the new Payroll Shared Service Centre, which is under Department of Public Expenditure and Reform. While there are no plans to implement Eircodes ahead of this move my Department intends to follow guidelines that may be issued in relation to the use of the new Eircode system of post codes in issuing correspondence once the system has been implemented.
Tax Yield
Questions (260)
Thomas P. Broughan
Question:260. Deputy Thomas P. Broughan asked the Minister for Finance the estimated income for the Exchequer which would be generated if a third rate of income tax of 48% was introduced on individual incomes above €100,000 per year; and if he will make a statement on the matter. [28351/15]
View answerWritten answers
It is assumed that the threshold for the 48% Income Tax rate proposed by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents, married couples and civil partnerships.
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 new Income Tax 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 Revenue Commissioners estimate that the first and full year yield to the Exchequer of the introduction of the suggested new third rate of Income Tax of 48% would be of the order of €317 million and €512 million respectively.
All figures above are estimates for 2015, using the actual data for the year 2012 (the latest year for which data are available) adjusted as necessary for income, self-employment and employment trends in the interim. They are provisional and may be revised. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
Financial Services Regulation
Questions (261)
Robert Troy
Question:261. Deputy Robert Troy asked the Minister for Finance his views regarding the serious consequences for loan owners who have had their loans sold by financial institutions to venture funds (details supplied); the regulations in place to ensure venture capitalists cannot exploit performing loans; and if he will make a statement on the matter. [28364/15]
View answerWritten answers
I am pleased to inform Deputies that borrowers whose loans are sold to unregulated entities are now protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 which has just been enacted. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. This Act will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.
All consumer and relevant SME loans sold by regulated financial institutions will be covered by this Act. Borrowers will therefore be restored to the protections they previously had, such as the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code and the Code of Conduct for Business Lending to Small and Medium Enterprises. Borrowers who previously had access to the Financial Services Ombudsman will also have this right restored by this legislation.
In addition, it should be noted that the transfer of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the contract. If a borrower considers that an attempt to change the terms of the contract unilaterally is being made, they should consider seeking independent legal advice. In addition or alternatively, they could make a complaint to the regulated lender or credit servicing firm as appropriate and progress to the Financial Services Ombudsman if the complaint is not resolved to their satisfaction.
Banking Sector
Questions (262)
Michael Moynihan
Question:262. Deputy Michael Moynihan asked the Minister for Finance if he has received representations from agents who worked for the Educational Building Society, prior to the society's acquisition by Allied Irish Banks; his views that these agents suffered a loss of income, financial hardship and a loss of livelihood; that in these circumstances these agents are due a recompense; and if he will make a statement on the matter. [28441/15]
View answerWritten answers
As the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as this are a matter for the bank, the relevant individuals and their representatives.
I can confirm that I have received a number of representations in relation to this matter but as it is subject to ongoing litigation it would not be appropriate for me to comment further.
Mortgage Interest Rates
Questions (263, 268)
Terence Flanagan
Question:263. Deputy Terence Flanagan asked the Minister for Finance the actions being taken to reduce standard variable rates (details supplied); and if he will make a statement on the matter. [28451/15]
View answer
Michael McCarthy
Question:268. Deputy Michael McCarthy asked the Minister for Finance the action he is taking to ensure that Irish mortgage holders are not paying unfairly high interest rates on their mortgages; and if he will make a statement on the matter. [28534/15]
View answerWritten answers
I propose to take Questions Nos. 263 and 268 together.
As the Deputies will be aware, I met with senior management of Ireland's six main mortgage lenders, including Permanent TSB, on 19th and 21st May to discuss the issue of mortgage interest rates. 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. 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. The main banks have since announced a range of new products offering customers lower monthly mortgage repayments.
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.
In relation to switching, I understand that the Competition and Consumer Protection Commission is planning to provide more information to consumers to encourage switching. I expect that if financial institutions are convinced that there is a threat that they will lose these customers, they will reduce the rates that they currently charge existing customers. The CCPC website www.consumerhelp.ie is a valuable source of information on the rates charged by various financial institutions.
The Government made a commitment in the Statement of Government priorities 2014 to 2016 to applying downward pressure on mortgage rates by increasing and supporting competition in the market and it will continue to work to fulfil that commitment.
A review of what progress has been made is now taking place. The main lenders have initiated new measures ranging from lower Standard Variable Rates to new loan to value products and fixed rate products. These new offerings could result in monthly savings for mortgage customers and I urge customers to see if there is an option available which would suit their circumstances and also save them money on their repayments. The Central Bank is also continuing to conduct research in this area following its earlier report.
As I have previously made clear, a follow up set of meetings with each of the six banks will take place in September in advance of the Budget.
Rátaí Úis Morgáiste
Questions (264)
Caoimhghín Ó Caoláin
Question:264. D'fhiafraigh Deputy Caoimhghín Ó Caoláin den Aire Airgeadais cé na moltaí a rinne sé do na bainc maidir le rátaí úis na morgáistí; an ndearna sé aon mholadh faoi leith chun go bhféadfaí rátaí laghdaithe a thabhairt do dhaoine faoi leith a roghnódh na bainc; agus an ndéanfaidh sé ráiteas ina thaobh. [28455/15]
View answerWritten answers
Mar is eol do na Teachtaí Dála, bhuail mé le lucht ardbhainistíochta na sé phríomhiasachtóir morgáiste in Éirinn i mí na Bealtaine chun saincheist rátaí úis na morgáistí a phlé. Ba ar an margadh morgáistí agus ar na rátaí athraitheacha caighdeánacha réasúnta ard atá á ngearradh ag na bainc faoi láthair go sonrach a dhírigh na cruinnithe.
Níor mhol mé gur cheart rátaí laghdaithe a thabhairt do dhaoine faoi leith a roghnódh na bainc. Ina ionad sin, leag mé mo thuairim amach gur ró-ard atá na Rátaí Athraitheacha Caighdeánacha atá á ngearradh i margadh na hÉireann. Chomhaontaigh na hiasachtóirí go léir gur cheart fáil a bheith ag custaiméirí ar tháirgí morgáiste níos iomaíche de réir mo mholta. Chomhaontaigh na bainc a gcuid rátaí agus táirgí a athbhreithniú agus, faoi thús mhí Iúil, roghanna simplí a bheith acu le haghaidh íocaíochtaí míosúla morgáiste a laghdú do chustaiméirí rátaí athraitheacha caighdeánacha. Áirítear le roinnt de na táirgí féideartha rátaí athraitheacha caighdeánacha níos ísle do chustaiméirí reatha agus do chustaiméirí nua, táirgí iomaíocha ráta sheasta agus rátaí athraitheacha níos ísle ina gcuirtear an coibhneas iasachta in aghaidh luacha san áireamh do chustaiméirí reatha agus do chustaiméirí nua. Pléadh staid na n-úinéirí tí atá i gcothromas diúltach agus rinneadh dearbhú a iarraidh agus a fháil go mbeadh na húinéirí tí sin ábalta leas a bhaint as roghanna chun a n-aisíocaíochtaí míosúla a laghdú.
Tá fógraí déanta ag na bainc agus déanfaidh oifigigh sa Roinn seo athbhreithniú ar an dul chun cinn sna seachtainí romhainn. Cuirfear sraith leantach cruinnithe ar siúl leis na bainc i mí Mheán Fómhair roimh an mBuiséad.
Tax Data
Questions (265)
Jim Daly
Question:265. Deputy Jim Daly asked the Minister for Finance the number of applications received by the Revenue Commissioners for the binding tariff classification tests for each of the past five years; the average length of time for an application; if there is any option available to manufacturers to request an urgent classification, which may have a significant impact on their business, owing to market demands; and if he will make a statement on the matter. [28478/15]
View answerWritten answers
The following table shows the number of Binding Tariff Information (BTI) applications received by the Revenue Commissioners over the last 5 years:
|
Year |
Number of BTI applications received |
|
2011 |
1,206 |
|
2012 |
873 |
|
2013 |
940 |
|
2014 |
800 |
|
2015 (up to 30th June) |
518 |
The length of time it takes to process an application can vary considerably, depending on factors such as the complexity of the case, the requirement to consult with technical experts, with the customs authorities in other Member States and with the European Commission. Over the period from 2011, the average processing time for a BTI application was 59 days.
In general, applications are processed in the order in which they are received but the Revenue Commissioners do and will continue to prioritise the occasional applications from traders who require a BTI as a matter of urgency.
The Deputy may wish to note the availability of a less formal process than BTI whereby traders can seek non-binding classification opinions. In 2014, the Revenue Commissioners dealt with 18,095 such requests. Non-binding opinions are delivered within 24 hours except where special circumstances (such as the need to verify chemical composition of a compound) are involved.
Departmental Correspondence
Questions (266)
Finian McGrath
Question:266. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding mortgages. [28488/15]
View answerWritten answers
In my response to parliamentary question no. 236, which was for written answer on 30th June 2015, the reference to the Commission of Investigation related to the perceived conflict of interest which was outlined in the question asked and was not in the context of the sale of loan assets as per the details supplied to this current question.
In relation to loan assets purchased by third party purchasers, I am unable to comment on the intentions and/or the subsequent actions of these third party purchasers once the loan assets have been sold.
However, as you may be aware, borrowers whose loans are sold to unregulated entities are now protected by the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015, which was enacted earlier this month. The purpose of the Act is to ensure that consumers retain the protections they had prior to the sale of their loan. This Act will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated.
All consumer and relevant SME loans sold by regulated financial institutions are covered by this Act. Borrowers have therefore been restored to the protections they previously had, such as the Code of Conduct on Mortgage Arrears (CCMA), the Consumer Protection Code and the Code of Conduct for Business Lending to Small and Medium Enterprises. Borrowers who previously had access to the Financial Services Ombudsman have also had this right restored by this legislation.
Therefore the borrower concerned may bring her complaint to the Financial Services Ombudsman if she is unable to resolve the complaint to her satisfaction with the institution concerned. The Financial Services Ombudsman was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner.
Disabled Drivers and Passengers Scheme
Questions (267)
Michael McCarthy
Question:267. Deputy Michael McCarthy asked the Minister for Finance if he will review the disabled drivers value added tax and vehicle registration tax refund scheme to ensure it reflects the real cost involved of changing a car; and if he will make a statement on the matter. [28530/15]
View answerWritten answers
My officials have been undertaking a technical examination of Disabled Drivers and Disabled Passengers (Tax Concession) Regulations, which govern the Drivers and Passengers with Disabilities Scheme, and it is now at an advanced stage. I expect to be in a position to address certain limitations of the Scheme in legislation very shortly.
Question No. 268 answered with Question No. 263.
Property Tax Administration
Questions (269)
John Browne
Question:269. Deputy John Browne asked the Minister for Finance the reason it is not inequitable to refuse deductibility of local property tax levied on private rental property against private rental income from that property; how it is equitable to continue disallowing it purely on the basis that it would reduce the tax base; and if he will make a statement on the matter. [28555/15]
View answerWritten answers
The Deputy will be aware that the inter-departmental group, chaired by Dr Don Thornhill, set up to consider the design of a property tax (the "Thornhill Group") recommended that the Local Property Tax paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates.
The Thornhill Group recognised the considerable pressures on the public finances and the need to bridge the gap between expenditure and revenue, and, for this reason, suggested that consideration be given to phasing in deductibility over a period of years. The group also considered that it was for Government, having regard to the prevailing budgetary situation, to decide on the time span for phasing-in deductibility and on what percentage of LPT to allow as a deduction from gross rents for tax purposes.
The Government accepted the recommendation of the Thornhill Group in principle, but has not considered the manner or the timing in which this will happen.
The matter will, like all other taxation issues, be kept under review, particularly in the context of preparations for Budget 2016.
NAMA Operations
Questions (270)
Mick Wallace
Question:270. Deputy Mick Wallace asked the Minister for Finance if it is part of the National Asset Management Agency's brief to facilitate developments for foreign direct investment in order to provide office space for foreign direct investment companies; and if he will make a statement on the matter. [28595/15]
View answerWritten answers
NAMA's statutory objectives are clearly defined in the NAMA Act 2009 (NAMA Act). Section 10 of the NAMA Act requires NAMA to obtain the best achievable financial return for the State, deal expeditiously with the assets acquired by it and to protect or otherwise enhance the value of those assets. That is the core of NAMA's mandate and it is clearly a commercial one.
Where, in accordance with that commercial mandate, NAMA facilitates the sale or letting of commercial office space by its debtors and receivers or provides funding for the development of new office space, it is open to all interested parties, including international companies looking to expand existing or to establish new business operations in Ireland, to participate in the relevant sales or letting process.
In the context of its overriding commercial mandate, NAMA also seeks to manage its portfolio in Ireland in a way that complements the objectives of other public bodies, including Government departments and State agencies. An important part of NAMA's work in this respect, which I fully support in the context of job creation, is its ongoing engagement with IDA Ireland in identifying suitable properties for companies looking to acquire or lease commercial office space in Ireland. NAMA's role in this respect is to facilitate commercial engagement between such companies and its debtors and receivers. NAMA is making a very important contribution in this respect and has, in working closely with IDA Ireland, facilitated a number of very significant property transactions for this country with companies such as Google, Facebook, Eli Lily, Kerry Group, Novartis, LinkedIn, Amazon, BskyB, Adroll, and Scottish and Southern Energy. In facilitating the demand for commercial office space and securing potential long term tenants, NAMA's role in this regard is entirely consistent with its commercial mandate under Section 10 of the NAMA Act which requires NAMA to obtain the best financial return for the State, deal expeditiously with the assets acquired by it and to protect or otherwise enhance the value of those assets.
More generally, as is identified on NAMA's website,(https://www.nama.ie/fileadmin/user_upload/2877_About_NAMA_A4_Brochure_FINAL.pdf), NAMA ensures that its debtors and receivers are aware of any potential purchaser interest in their properties and where appropriate will facilitate engagement between the relevant parties.
NAMA also has a policy of, wherever feasible, affording public bodies first option on the acquisition of land and property on the basis of independently assessed market value.