Written Answers Nos. 281 to 301
283. Deputy Seán Ó Fearghaíl asked the Minister for Finance when he expects that credit union services will be made available in Newbridge in County Kildare, given the thousands of persons who urgently require this service; and if he will make a statement on the matter. [33325/15]
View answerWhile the Government is absolutely determined to support a strengthened and growing credit union movement and has highlighted its support for the return of credit union services to Newbridge, my role as Minister for Finance is to ensure the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. In line with the Credit Union Act, 1997 (as amended) the registration of a new credit union and the extension of a common bond of an existing credit union is the responsibility of the Registry of Credit Unions at the Central Bank.
I have been informed by the Central Bank that as previously confirmed it would consider any proposal that would provide for the restoration of credit union services in the Newbridge area, including the possible extension of the common bond of credit unions in the local area.
Accordingly, the common bond of Naas Credit Union was extended in February 2015 to include Newbridge and its surrounding areas, resulting in the restoration of the availability of credit union services to people residing or employed within this area.
284. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he expects the economy to grow in the future; and if he will make a statement on the matter. [33362/15]
View answer285. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that economic progress is likely to continue into the future; if the cost base remains competitive and if it is likely to remain so in the future; and if he will make a statement on the matter. [33363/15]
View answer288. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he is satisfied regarding the economic prospects over the next five years; and if he will make a statement on the matter. [33366/15]
View answer290. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy remains attractive to foreign direct and indigenous investment for the foreseeable future; and if he will make a statement on the matter. [33368/15]
View answerI propose to take Questions Nos. 284, 285, 288 and 290 together.
In general, recent indicators have been very positive, indicating that the recovery is strengthening in a more sustainable manner.
The latest data shows that GDP increased by 6.7 per cent year-on-year in the second quarter of this year. This comes on the back of an increase of 7.2 per cent in the first quarter. As a result, GDP per capita is now above its pre-crisis peak. In the Spring Economic Statement, published in April of this year, my Department forecast that the economy would grow by 4 per cent in 2015 and 3.8 per cent in 2016. On the basis of strong quarterly national account results for the first and second quarters of this year, I expect these projections to be revised upwards in the macroeconomic forecasts which will be published with the Budget in mid-October.
Importantly, the recovery is now being felt in the domestic economy with consumption up over 3 per cent in the first half of this year and investment up over 20 per cent. In fact, last year domestic demand made its strongest positive contribution to economic growth since the crisis began. This is very important as the domestic sectors are both jobs-rich and tax-rich. The external sector is also showing continuing signs of growth with exports increasing by almost 14 per cent in the first half of this year.
The economic recovery is also clearly evident in the labour market where we have now had eleven successive quarters of solid annual employment growth. As a result, the unemployment rate has fallen by almost 6 percentage points since its peak in early 2012.
Over the medium term, my Department expects that the economy can grow by around 3 per cent per annum on a sustainable basis. However, achieving a sustained economic recovery cannot be taken for granted and is contingent upon the implementation of the right policy mix. As set out in the Spring Economic Statement, the Government is using all policy instruments available to build sustainable public finances, improve access to credit and reform the income tax system. A carefully targeted capital investment plan will be used to alleviate supply side bottlenecks and barriers to growth. The Ireland Strategic Investment Fund and the Strategic Banking Corporation of Ireland which I established will also contribute in this regard. The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements, wage and price moderation. It is important that this competitiveness is preserved to continue to attract foreign direct and indigenous investment.
In summary, I am confident that significant economic progress can be made in the years ahead. But crucially, this is contingent upon implementing appropriate polices. That is what the Government intends to do.
286. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which any inflationary tendencies have been detected throughout the economy; if any corrective action is required; and if he will make a statement on the matter. [33364/15]
View answerThe annual rate of inflation, as measured by Harmonised Index of Consumer Prices (HICP), was 0.2 per cent in August, representing the fourth successive month of modest positive inflation.
The main factor depressing inflation over the past year or so has been energy prices. Core inflation - which strips out energy and unprocessed food - is a better indication of underlying developments in the domestic economy and has averaged around 1 per cent over the past year. Low consumer price inflation is supporting household disposable income and is one of the factors supporting consumption growth.
It is anticipated that the annual rate of inflation will pick-up gradually as the domestic recovery continues, supported by quantitative easing, to rates consistent with price stability, i.e. close to but below 2 per cent, without the need for corrective action.
287. Deputy Bernard J. Durkan asked the Minister for Finance whether the possibility of the utilisation of a Government development bond might be considered to address the ongoing housing shortage, in either the public or the private sector; and if he will make a statement on the matter. [33365/15]
View answerThe proceeds of all borrowings by the Exchequer, as well as tax revenues, non-tax revenues and other receipts are lodged to the Exchequer account at the Central Bank of Ireland to fund on-going Government expenditure.
The National Treasury Management Agency (NTMA) has advised that project-specific bonds issued by the State linked to a specific project and which are serviced and repaid from the Exchequer in the same way as standard Government bonds, may be of limited interest to investors due to the relative lack of liquidity. Investors in project-specific bonds would require higher yields than standard Government bonds to reflect lower liquidity. Such project-specific bonds, if issued by Government, would also be on the Government's balance sheet.
However in the case of a Public Private Partnership (PPP), where the State selects a private consortium to Design, Build, Finance & Operate State infrastructure, that private consortium can issue project-specific bonds. Such bond issuance may be deemed to be outside of General Government provided that the necessary risks are contractually transferred to the private sector in accordance with Eurostat rules. The latter type bonds are considered by investors to carry significantly more risk than standard Government issued bonds and consequently require higher yields to reflect the risk profile.
I would like to draw the Deputy's attention to the recently announced joint venture between the Irish Strategic Infrastructure Fund (ISIF) and KKR Credit. The joint venture, named Activate Capital will invest in the development and construction of housing, with €500 million of financing, which will assist in normalising the sector and addressing the housing shortfall. The venture will be a €500 million vehicle and will be financed through a €325 million investment from the ISIF (its biggest single investment to date) and €175 million investment from KKR. This is good news for jobs, growth, potential house purchasers, and the construction sector. This joint venture will be an important source of funding for increasing the supply of medium to large housing developments.
289. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to be in a position to acknowledge and reward the Irish people for the sacrifices they have made since 2008, arising from the imposition of necessary financial constraints; and if he will make a statement on the matter. [33367/15]
View answerFirstly, I would point out that I and the rest of my Government colleagues have always acknowledged the sacrifices and efforts made by the Irish people since 2008 in addressing the crisis in the public finances. As the Deputy will be aware, the overarching priority for this Government in recent years has been to return stability to the public finances, while also ensuring that the economic recovery is supported and the most vulnerable in society are protected. I would point out that significant progress has been made in this regard, with Ireland due to correct the Excessive Deficit Procedure this year.
It is also worth pointing out that this Government has honoured its Programme for Government commitment to maintain the current rates of income tax together with bands and credits. This commitment was delivered in Budgets 2012, 2013 and 2014, which was critical in ensuring that income tax did not act as an excessive impediment to the recovery.
In addition, as the Deputy will be aware, the Government has been very clear in relation to its tax policy intentions. The Statement of Priorities issued by Government in July 2014, included a commitment for an income tax reform plan to be delivered over a number of budgets, to reduce the marginal tax rate on low and middle-income earners, in a manner that maintains the highly progressive nature of the Irish tax system. The first stage of the plan was given effect in Budget 2015, when a suite of Income Tax and Universal Social Charge (USC) measures were introduced. These changes to the income tax system ensures that all those who paid income tax or USC in 2014 are seeing a reduction in their tax bill for 2015. This marked the end of the consolidation period.
Finally, as I have stated many times in the house, it is intended that the fiscal space available in Budget 2016 will facilitate the continuation of this plan.
291. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that the lending sector continues to facilitate borrowers who have mortgages or other arrears; and that arrangements continue to be entered into to facilitate the needs of borrowers, in a way that is sustainable to them, and not only to the lender; and if he will make a statement on the matter. [33369/15]
View answerThe Deputy will be aware that the Central Bank published Residential Mortgage Arrears and Repossessions Statistics for quarter 2 of this year on 02 September last. This publication provided further evidence that lenders are continuing to facilitate borrowers with mortgage arrears. In summary, the position is:
1. Quarter 2 2015 marks the eight consecutive quarter of decline in the number of mortgage accounts for principal dwelling houses in arrears. This cohort has declined by 6.3 per cent relative to Q1 2015.
2. The number of accounts in arrears over 90 days continued to fall, marking the seventh consecutive decline in the number of accounts in this cohort.
3. The 363-720 days in arrears category showed the largest decline, with a 12.9 per cent quarter-on-quarter reduction.
4. The pace of increase in accounts in arrears over 720 days has reduced significantly in recent quarters, with the smallest increase in this category occurring to date.
5. Over 118,500 PDH mortgage accounts were classified as restructured at end-June, reflecting a quarter-on-quarter increase in restructured accounts of 1.9 per cent. Of these restructured accounts, 86.3 per cent were deemed to be meeting the terms of their current restructure arrangement.
The continuing positive data trends shown in the Central Bank quarter 2 mortgage arrears returns are welcome and show that where there is positive engagement between lender and borrower, in the majority of cases an outcome that is beneficial to both parties can be achieved.
The Deputy will also be aware that lenders are required to fully comply with the Code of Conduct on Mortgage Arrears (CCMA) and are answerable to the Central Bank for any failure to do so. The Central Bank monitors compliance by regulated entities with the CCMA and published the outcome of a themed inspection of compliance with the CCMA in June, the findings of which it is currently following-up on.
Based on the data for quarter 2 and the Central Bank follow-up action on foot of their CCMA themed inspection, I am satisfied that the lending sector continues to facilitate borrowers who have mortgages or other arrears and that every effort is made to facilitate borrowers with sustainable restructure arrangements.
292. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he continues to use his influence with the banking sector to ensure the availability of adequate working capital, particularly for the small and medium sized business sector; and if he will make a statement on the matter. [33370/15]
View answerThis Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit facilities from a diverse range of bank and non-bank sources.
Having completed a process of deleveraging, both AIB and Bank of Ireland are now concentrating on growing their balance sheets. In this context, both banks recognise the need to increase business lending in the period up to 2016, including lending to the SME sector. My Department collates and examines, on a monthly basis, granular data on the funding of the activities of SMEs from both AIB and Bank of Ireland, the wider banking sector and increasingly the non-bank funding sector. In addition, AIB and Bank of Ireland meet my officials on a quarterly basis to keep them abreast of issues pertaining to the SME sector. This facilitates the Department and the Credit Review Office in monitoring progress against agreed annual SME lending plans and ensuring that new lending to SMEs continues to increase as a percentage of total sanctioned lending. I will keep this area under close scrutiny to ensure that the SME sector can access an adequate flow of credit to support the recovery of the economy.
The SME State Bodies Group chaired by my Department are responsible for the Finance for Growth commitments in Action Plan for Jobs. In 2014, there was strong emphasis on broadening the range of bank and non-bank finance mechanisms available to SMEs. The APJ 2014 included an integrated action plan that included a series of measures designed to;
- Increase new lending
- Increase participation in Government sponsored initiatives
- Develop new sources of funding
- Increase awareness of Government measures and initiatives to support SMES and
- Enhance the financial capability of SMEs.
In seeking to build on the progress to date and to maximise the benefits to SMEs of the evolving financial landscape in Ireland the focus in 2015 has been to implement a series of actions in the following areas:
- Support and influence the effective implementation of major policy initiatives to ensure that the maximum benefits are afforded to SMES
- Continue to raise awareness and understanding amongst SMEs and entrepreneurs of the full suite of State business supports that are available
- Ensure that the LEO network is a key conduit in providing information, support and advice to small businesses on access to finance issues and strengthen the linkages between enterprise capacity building, accessing finance and business guidance
- Deepen our engagement with international funding institutions
- Facilitate and support the development of a more diverse range of financing options for SMEs
The Government's aim for the Strategic Banking Corporation of Ireland (SBCI) is for it to enhance the range and profile of SME finance providers in Ireland. The SBCI has been established to last into the long term and has been mandated to consider the needs of the SME sector in particular in all of its affairs. Already the SBCI's partnership with AIB has resulted in a 2% reduction in that bank's standard interest rate offering to SMEs. From 9 March to the end of June, some €44.6 million across 1,626 SBCI loans have been extended to the SME market.
The average loan size is €27,500. The SBCI will continue to work with existing and new providers to develop specific funding products for the needs of SMEs and will also support new entrants to the SME funding markets so as to increase competition and enhance choice. The SBCI is currently in discussions with other banks and a number of non-bank providers of finance to provide products such as invoice discounting, leasing and asset based finance in order to broaden the funding options available to the SME sector and to support those providers with SBCI monies.
The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs. The Department of Jobs, Enterprise and Innovation and my Department have worked on an amendment to the existing guarantee scheme to provide funding to SMEs whose banks are exiting the Irish market. My colleague, the Minister for Jobs, Enterprise and Innovation, will shortly bring legislation to the Oireachtas which will enable the development of a more flexible Credit Guarantee Scheme with longer duration and more products and providers included.
The Microenterprise Loan Fund, administered by Microfinance Ireland, provides loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund. This scheme is currently being reviewed by the Department of Jobs, Enterprise and Innovation with a view to making proposed changes to enhance its effectiveness.
The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland or Allied Irish Banks, and who feel that they have a viable business proposition. They also examine cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment. This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Reviewer, John Trethowan and his team, have overturned 55% of the refusals that have been appealed to the Office. Further details are available at www.creditreview.ie.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. Consequently the Department of Finance, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit with a view to taking appropriate actions as warranted to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.
293. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which banking charges and interest rates are in accord with those applicable throughout the eurozone; and if he will make a statement on the matter. [33371/15]
View answerAll credit institutions in Ireland are independent commercial entities and I have no statutory role in relation to the charges applied by credit institutions. Section 149 of the Consumer Credit Act 1995 requires that credit institutions, prescribed credit institutions and bureaux de change must make a submission to the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges in respect of certain services. Section 149 does not cover interest rates rather it applies to fees and commissions only. The Central Bank may direct the institution not to impose the new or increased charge or it may approve the charge, or approve it at a lower level than requested by the institution. Once approved, the bank is entitled to impose the charge.
My Department published a report on the review of the regulation of bank fees and charges in December 2013. This contains a detailed description of the process by which the Central Bank makes decisions on whether or not to approve proposed charges. It is available on my Department's website at www.finance.gov.ie. Among the key findings of the review was that while fee and commission income has become a more important source of income to the banks in recent years, net fee and commission income in Irish banks was well below the average of their European peers.
The European Communities (Payment Services) Regulations 2009 (the Payment Services Regulations) include requirements for banks and other payment institutions to provide information to the consumer about charges, interest and exchange rates on the accounts and these are reflected in the Central Bank's Consumer Protection Code 2012, which contains requirements in relation to the provision of information on charges to consumers. The website of the Competition and Consumer Protection Commission (CCPC) also lists the various charges imposed by financial institutions in Ireland for different types of transactions www.ccpc.ie. The revised Payment Services Directive (known as PSD2) is currently being finalised at EU level and it is expected that Member States will be required to transpose the Directive by 2017. Among its other objectives, PSD2 is expected to promote competition, meaning increased choice and better conditions for consumers and businesses.
Irish financial institutions have varying models for charges and have different regimes and conditions under which they are willing to grant transaction free banking. Individuals' use of their bank account will be specific to each individual and I would strongly encourage people to look at this comparison site with their specific circumstances in mind in order to decide which institution offers the best product for their pattern of account usage.
On interest rates, Central Bank data contained in the Retail Interest Rates Statistical Release show that the rate on new floating rate loan agreements for house purchase (which includes renegotiations), was 3.35 per cent at end-July 2015, representing a decrease of 3 basis points over the month. The equivalent euro rate was 2.04 per cent. The Deputy will be aware of the actions that I have taken in this area recently and that the majority of the lenders have now put options in place to allow borrowers to reduce their monthly repayments.
294. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which appeals continue to be made against decisions by lenders to refuse banking accommodation to various enterprises; the number of decisions which have been overturned; the extent to which the number of cases referred for appeal has fluctuated over the past three years; and if he will make a statement on the matter. [33372/15]
View answerAs the Deputy may have noted from my reply to his earlier question on 22 June 2015, the Credit Review Office (CRO) assists SME or farm borrowers who have had an application for credit of up to €3m declined or reduced by AIB, Bank of Ireland or Ulster Bank (who joined the review process on 1 June 2015) and who feel that they have a viable business proposition. PTSB will shortly begin participating in the credit review process.
The tables following, provided by the CRO, provide the information requested by the Deputy:
|
- |
Bank Internal Appeals |
Overturns |
% Overturns |
|
2012 |
392 |
100 |
26% |
|
2013 |
392 |
124 |
32% |
|
2014 |
361 |
83 |
23% |
|
- |
Credit Review Office Applications |
Credit Review Office Reviews Completed |
Overturns |
% Overturns |
|
2012 |
128 |
128 |
64 |
50% |
|
2013 |
106 |
95 |
51 |
54% |
|
2014 |
85 |
73 |
42 |
58% |
|
TOTAL |
|
296 |
157 |
53% |
295. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which his Department continues to monitor the implications for this jurisdiction of a United Kingdom exit from the European Union; and if he will make a statement on the matter. [33373/15]
View answerThe Government's position on developments in relation to British membership of the EU has been clearly articulated, in particular by the Taoiseach and the Minister for Foreign Affairs and Trade: we very much want the UK to remain an integral member of the Union. This is important for both our economy and the ongoing development of excellent relations between Ireland and the UK. It is the Government's stated position as well that the EU itself is stronger and more effective with the UK as a member.
The UK's continuing membership within the Union is therefore a strategic objective for the Government. We are accordingly monitoring developments in the relationship between the UK and the EU very carefully in order to best understand the different interests at stake.
My Department is focusing, in particular, on the economic and financial issues involved. In this regard, the ESRI has undertaken research, under the Department of Finance/ESRI research programme agreement, on the macroeconomic links between the UK and Ireland in the context of joint membership of the EU. This includes trade and investment aspects of our relationship, including financial services. The research will be published shortly.
The UK Government is now committed to holding a referendum on its membership of the Union before the end of 2017 and we fully respect that this is an issue for the British electorate to decide. However, our hope is that they will vote to remain in the European Union. The Government intends to play a constructive role when it comes to negotiations within the EU on the terms of British membership. We will support any reasonable proposals for reform of the functioning of the Union, while at the same time making clear where we believe that specific proposals are undesirable or unachievable.
296. Deputy Richard Boyd Barrett asked the Minister for Finance the annual cost in terms of revenue foregone of abolishing the local property tax; and if he will make a statement on the matter. [33391/15]
View answer301. Deputy Pearse Doherty asked the Minister for Finance the total revenue generated in 2014 by the local property tax. [33452/15]
View answer302. Deputy Pearse Doherty asked the Minister for Finance the total portion of persons liable to local property tax in 2014 who were exempted from the tax relative to the total number of persons liable for local property tax. [33453/15]
View answer303. Deputy Pearse Doherty asked the Minister for Finance the total number of deferrals granted from the local property tax in 2014. [33454/15]
View answer304. Deputy Pearse Doherty asked the Minister for Finance the total portion of persons liable to local property tax in 2014, who paid the higher rate of 0.25% on properties valued at over €1 million relative to the total number of persons liable to local property tax; and the amount of revenue generated by this higher rate. [33455/15]
View answerI propose to take Questions Nos. 296 and 301 to 304, inclusive, together.
In relation to Question 3391-15, I am advised by the Revenue Commissioners that the Local Property Tax (LPT) is forecast to collect €440 million in 2015.
With reference to Questions 33452-15, 33453-15 and 33454-15, I am further advised that LPT statistical data are available from the statistics webpage of the Revenue Commissioners' website at http://www.revenue.ie/en/about/statistics/index.html. Specifically, information concerning the total revenue collected in 2014 as well as the numbers of persons claiming exemptions and deferrals can be accessed at http://www.revenue.ie/en/about/statistics/lpt-compliance.html.
Finally, with regards to Question 33455-15, I am advised that the number of properties which returned a valuation in the greater than €1 million valuation band is also available from the aforementioned statistical publication. However, a breakdown of the revenue generated by the higher rate is not available.
297. Deputy Richard Boyd Barrett asked the Minister for Finance if he or the Revenue Commissioners have any estimate of the tax gap between the revenue actually collected each year and what it may have collected if it had greater resources available to it to pursue tax owed; and if he will make a statement on the matter. [33393/15]
View answerRevenue collected over €41 billion in net receipts in 2014, while its compliance programmes generated €610 million in tax, interest and penalties. The level of undisputed debt (excluding appeals) is the lowest among OECD countries, having fallen from 3.7% of net collection in 2011 to 2.1% in 2014. The cost of tax administration in Ireland, estimated at 0.85% of collection, is in the mid range of OECD countries. Compliance measures also place Ireland among the best performers internationally.
There is no indication that the Revenue Commissioners are generally under-resourced, or that a general increase in staffing would improve upon already excellent results. Revenue however needs additional resources from time to time to address shortfalls in skill and numbers in particular areas, to improve the efficiency of administration, or to support targeted initiatives to tackle evasion. Such issues are dealt with in the normal manner in discussion with the Department of Public Expenditure and Reform, and proposed initiatives are included in the Comprehensive Review of Expenditure 2014, which lists a range of possible savings and compliance improvements along with their associated costs of implementation.
I am very conscious of the need to maintain the capacity of Revenue at the highest levels, and to that end the Minister for Public Expenditure and Reform was able to provide significant additional resources in 2015 in the areas of information technology, increased audit and compliance staffing, and specialist skills in international taxation and data analytics.
In the event that the Revenue Commissioners make specific proposals in the future for additional resources to tackle non-compliance and tax evasion, any such proposal will be considered by me and by my colleague, the Minister for Public Expenditure and Reform.
298. Deputy Ruth Coppinger asked the Minister for Finance if his plans to repurpose the National Asset Management Agency as a social and affordable housing agency will include any provision for social housing over and above the 10% of developments of over nine units mandated under the Urban Regeneration and Housing Act and the 2,000 units previously announced by the agency; and if he will make a statement on the matter. [33421/15]
View answerI have no intention to repurpose NAMA or its objectives, as the Deputy is suggesting. NAMA has a well-established overriding commercial mandate to recoup the best return for the Irish taxpayer and this has not changed. However, that does not mean that NAMA does not carry out objectives, such as facilitating the delivery of residential and social housing, which are entirely consistent with its existing purpose and objectives.
At the outset, it is important to note that NAMA does not build houses itself, rather it works with its existing debtors to agree development plans, secure/alter planning permission and fund the debtor's delivery of units. Through these efforts NAMA are helping to increase the value of the security supporting the loans of its debtors and so improving NAMA's ultimate recovery on these loans.
In this regard, NAMA continues to work closely with the Minister for the Environment, Community and Local Government and the Minister of State for Housing and Planning in relation to the delivery of residential housing, including social housing, and all parties are committed to the maximum possible delivery of residential units.
As at mid-September 2015, I am advised that NAMA had identified over 6,500 residential properties as potentially suitable for social housing. I am further advised that demand has been confirmed by local authorities for over 2,500 properties, of which 1,518 have been delivered for social housing use. NAMA also expects the end 2015 target of 2,000 social housing units will be achieved.
The 6,500 residential properties made available by NAMA for social housing represents the totality of vacant residential properties within NAMA's portfolio that were potentially suitable for social housing. The 4,000 residential properties not taken up for social housing have been either sold or rented in the private housing market and in that way have contributed to increased market supply.
NAMA has no role in terms of determining the take-up of properties that it has made available for social housing as this is a matter for local authorities. The remaining properties made available by NAMA were ultimately deemed unsuitable by local authorities based on criteria such as their location and on wider planning and housing policy considerations or they were sold or rented by their owners or appointed receivers during the time taken by local authorities to assess and confirm their suitability.
All applicants for residential development, irrespective of who the funder is, must comply with the relevant planning and housing policy, including Part V policy relating to the provision of social housing which the Deputy referenced. As Minister for Finance, I do not have role in relation to the application of the Part V policy in respect of any individual development.
NAMA has indicated that Part V units within new residential developments funded by it could be delivered through its social housing SPV, NARPS. This would mean that the upfront capital cost of constructing such units would be borne by NAMA. This may reduce the funding burden otherwise placed on financially constrained local authorities. These units then could be leased under long term leasing arrangements for social housing.
Furthermore, NAMA is also playing a key role in providing support to the wider residential market by boosting supply. With exposure to less than one-third of Dublin's residential development land, NAMA funding delivered 40% of the 3,259 new housing units in Dublin in 2014 and in the first half of 2015 funded the delivery of 50% of new output in Dublin.
As a member of the Dublin Housing Task Force, NAMA has identified all the Tier 1 lands (i.e. sites with potential to deliver more than 20 units) on its books with residential planning already in place. These, along with all other non-NAMA Tier 1 sites in the Dublin area, have been published via an interactive map on the Department of Environment, Community, and Local Government website. This action has brought greater transparency to the Dublin market by publically providing detailed information on sites with development potential.
In April 2014, as part of its contribution to address emerging residential supply shortages in the Greater Dublin area, NAMA established a dedicated Residential Delivery team to coordinate and drive the delivery of this commitment and assess the potential for delivery of additional units thereafter.
I am further advised that NAMA also has security over 156 or 17% of the 992 unfinished housing estates in the country down from 268 of 1,258 at end 2013. This substantial reduction in the number of unfinished housing estates within the NAMA portfolio reflects the impact of funding to debtors and receivers to undertake remedial works in line with Site Resolution Plans agreed with local authorities. NAMA also inform me that the Agency has advanced funding in excess of €5m for site resolution works on unfinished housing estates in which it has an interest as a secured lender.
With all of the above in mind, it is clear that NAMA is making a significant contribution to social and residential housing and a re-purposing of the Agency is not required in order for this to continue.
300. Deputy Pearse Doherty asked the Minister for Finance the cost of introducing a pay-as-you-earn credit for self-employed persons of €135, €200, €250, €300, €350 and €400. [33451/15]
View answerI am informed by the Revenue Commissioners that the respective estimated first and full year costs to the Exchequer of introducing such a credit for the following amounts: €135, €200, €250, €300, €350 and €400 are set out in the following table:
|
Credit |
First Year Cost €m |
Full Year Cost €m |
|
€135 |
24 |
45 |
|
€200 |
36 |
66 |
|
€250 |
45 |
82 |
|
€300 |
54 |
99 |
|
€350 |
63 |
115 |
|
€400 |
72 |
132 |
These estimated costs are based on extending the credits to all non-PAYE cases including Schedule D, Proprietary Directors and assisting spouses. In addition, the estimate includes cases classed as Schedule D where most of their gross income is non-PAYE. Some of these cases may be availing of the PAYE credit. The estimate does not take into account the ability of the credit to be fully absorbed.
These figures are estimates for 2016 from the Revenue tax forecasting model using the latest actual data for the year 2013, adjusted as necessary for income, self-employment and employment trends in the interim. They are, therefore, provisional and may be revised.
