Joanna Tuffy
Question:64. Deputy Joanna Tuffy asked the Minister for Finance for an update on the Revenue Commissioner's year-by-year statistical reports; and if he will make a statement on the matter. [34867/15]
View answerRevenue Commissioners Reports
Questions (64)
Written answers
I am advised that the Revenue Commissioners have proactively reviewed both the content and dissemination methods for their publication of statistical information in the recent years. They have moved to provide their most relevant and sought after information in new and more accessible formats for statistics across all of the taxes and duties. Whereas previously information was provided by way of static tables in documents and published as an Annual Revenue Statistical Report, Revenue is now making the same statistical information available to be queried and downloaded in a range of formats.
This makes it much easier for interested parties and researchers or analysts to access and use Revenue's statistics. The information on this webpage is updated in due course, as newer data become available, rather than on an annual basis as previously. This initiative also places Revenue at the forefront of the Government's Open Data programme.
The Revenue Statistics webpage is located at http://www.revenue.ie/en/about/statistics/index.html. In relation to income distribution statistics, these are linked from the Revenue statistics webpage and can be accessed directly at http://www.cso.ie/px/pxeirestat/pssn/rv01/homepagefiles/rv01_statbank.asp. The information the Deputy queried is available under the "Income Tax and Corporation Tax Distribution Statistics" heading.
Code of Conduct on Mortgage Arrears
Questions (65, 66, 67)
Pearse Doherty
Question:65. Deputy Pearse Doherty asked the Minister for Finance if his view on the legal enforceability of the code of conduct on mortgage arrears has changed following the Supreme Court's ruling on the issue; and if he will make a statement on the matter. [34870/15]
View answerPearse Doherty
Question:66. Deputy Pearse Doherty asked the Minister for Finance his plans to amend or introduce legislation to put the code of conduct on mortgage arrears on a statutory footing; and if he will make a statement on the matter. [34871/15]
View answerPearse Doherty
Question:67. Deputy Pearse Doherty asked the Minister for Finance if he will discuss with the Central Bank of Ireland whether changes are required to the code of conduct on mortgage arrears following the recent Supreme Court ruling on the matter of the legal enforceability of the code; and if he will make a statement on the matter. [34872/15]
View answerWritten answers
I propose to take Questions Nos. 65 to 67, inclusive, together.
The Code of Conduct on Mortgage Arrears (CCMA) is a statutory code issued under Section 117 of the Central Bank Act, 1989. The CCMA applies to all regulated mortgage lenders operating in the State when dealing with borrowers facing or in mortgage arrears on their primary residence, including any mortgage lending activities outsourced by these lenders.
Where breaches of any regulatory requirements occur, firms and/or individuals can expect vigorous investigation and follow through by the Central Bank. The Central Bank regularly conducts themed inspections to ensure compliance with all of its codes of conduct, including the CCMA. Breaches of regulatory requirements are dealt with using appropriate supervisory powers, including Administrative Sanctions powers, where appropriate.
There is no legal issue, therefore, over whether or not regulated entities are to comply with this statutory code. Lenders are required to comply with all aspects of the CCMA and non-compliance with the CCMA is enforceable against regulated entities by the Central Bank. The precise issue that arose before the Courts was the extent to which non-compliance with the CCMA could be adjudicated by the Courts in a repossession case between a lender plaintiff and a borrower defendant. In that regard, the Supreme Court found that where a breach of the CCMA involves a failure of the lender to abide with the moratorium referred in the CCMA, but in no other circumstances, non-compliance with the CCMA affects a relevant lender's entitlement to obtain an order for possession. Following on from this, a breach of any other aspect of the CCMA does not in itself adversely affect a lender's contractual right to possession in the circumstances of mortgage default.
The Supreme Court found that the CCMA prohibited lenders from seeking an order for possession where the moratorium was not complied with but that it did not prohibit the seeking of an order for possession in other circumstances. The Supreme Court has therefore ruled that where the Code of Conduct prohibits the seeking of an order for possession the Courts will enforce that prohibition. To quote from the judgement of the Supreme Court:
"A financial institution which, entirely ignoring the provisions of the Code in that regard, simply went ahead and sought possession as soon as it was legally entitled so to do would be doing the very thing which the Code is designed to prevent. For a court to entertain an application for possession which was brought in circumstances of clear breach of the moratorium would be for a court to act in aid of the actions of a financial institution which were clearly unlawful (by being in breach of the Code) and in circumstances where the very act of the financial institution concerned in seeking possession was contrary to the intention or purpose behind the Code itself."
Where the code does not so prohibit and where it is not illegal for an order of possession to be sought then it is not a matter in which the Courts will intervene. I am pleased to note that the Supreme Court decision has in fact recognised that the CCMA forms part of the law and that a regulated financial institution is obliged, as a matter of law, to obey it. However, it should also be noted that in a repossession case before the Courts a borrower's rights are not confined to the provisions of the CCMA.
The 2013 Land and Conveyancing Law Reform Act has provided a new statutory avenue to borrowers in a repossession case involving a primary dwelling to seek an adjournment of the repossession case to allow the borrower the opportunity to consider and, if so decided, to propose a Personal Insolvency Arrangement (PIA) to creditors in order to resolve an unsustainable debt position. If this is approved by the Court, the debtor would then be in a position to formally propose an alternative and sustainable payment arrangement irrespective of whether or not the primary home lender considered or rejected such an arrangement under the CCMA. Also, under a PIA there is an onus on the personal insolvency practitioner to, insofar as is reasonably practicable, formulate a proposal on terms that will not require the debtor to dispose of an interest in, or cease to occupy, a private principal residence. Even if such a PIA proposal is rejected by creditors, the Personal Insolvency Act has now been amended to provide that the proposal can then be submitted to a Court for adjudication.
I appreciate the genuine concerns Deputies may have regarding the implications of the particular decision for borrowers in genuine difficulty with a mortgage on their own home. While the full implications of the decision can be considered further by my own officials and the Central Bank, as I have already noted, the Central Bank has powers to both supervise and enforce that Code. In any event the recent changes to the Land and Conveyancing Act and the Personal Insolvency Act has given a statutory right to a borrower to propose a sustainable solution to creditors, or failing that a court, as an alternative to repossession.
Credit Union Regulation
Questions (68)
Dara Calleary
Question:68. Deputy Dara Calleary asked the Minister for Finance if he will refrain from commencing consultation paper 88 until such time as full consideration is given to the recommendation of the International Credit Union Regulators Network Report that a review be carried out; and if he will make a statement on the matter. [34939/15]
View answerWritten answers
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and myself, as Minister for Finance, are working together for the safety of members' savings and the security of the credit union sector.
The purpose of the International Credit Union Regulators' Network (ICURN) review was to assess the performance of the Central Bank's performance of its regulatory functions in relation to credit unions. The review assessed the legal, regulatory and prudential supervisory framework in place to fulfil the Central Bank's mandate under section 84 of the Credit Union Act, 1997 and accordingly focused on the legal and regulatory framework for the regulation of credit unions in effect at the time of the review. Overall the review found that the Central Bank effectively performs its functions in the regulation and supervision of the credit union sector.
The review included a number of recommendations for refinements under the 3 broad areas: Supervisory Approach; Communications and Guidance; and Resources. ICURN made a number of recommendations in relation to each area. Under the heading Communications and Guidance, ICURN also suggested that consideration be given by the relevant authority to directing a review to evaluate the implementation of the recommendations of the Commission on Credit Unions. ICURN further stated that this is not a matter for the Central Bank. As Minister for Finance I have no plans at this time to carry out such a review.
I have been informed by the Central Bank that the draft regulations set out in Consultation Paper 88 (CP88) will be introduced at end December 2015. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations. These sections of the 2012 Act, when commenced, will replace, amend or supplement existing sections of the 1997 Act.
As outlined in the Central Bank's feedback statement on CP88, as part of the consultation process I proposed that in the interests of clarity and fairness, credit unions are provided with details of the process of applying for a retention of savings above the limit amount. I have been informed by the Registry of Credit Unions that all credit unions have been contacted giving further information on its application criteria for the retention of savings in excess of €100,000. The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to finalisation of the application process. When the application process is finalised, the Registry will provide an application form and explanatory notes in order to assist credit unions. It is anticipated that application forms will be available during December 2015. It is envisaged that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.
I welcome the steps that have been taken to provide clarity for credit unions on the criteria for the retention of savings over €100,000 and also welcome the proposed engagement with the representative bodies to seek their comments on the application process.
The Central Bank has also informed me that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed. It is envisaged that this review will commence within three years of the introduction of the regulations. The Central Bank has agreed to provide regular updates to my Department on developments in this matter.
The Central Bank has further informed me that it is open to working with the credit union sector to ensure that prudent and appropriate business development can be facilitated within the regulatory framework. As set out in the feedback statement on CP88, the Central Bank intends to invite interested parties to discuss business model development in the coming months.
The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.
Tax Reliefs Data
Questions (69)
Éamon Ó Cuív
Question:69. Deputy Éamon Ó Cuív asked the Minister for Finance the number of farmers, in tabular form, who availed of the various tax reliefs specifically in the income tax, stamp duty, capital gains tax and inheritance tax codes for farmers for the most recent year that this information is available; the cost of each relief to the Exchequer for that year; and if he will make a statement on the matter. [34948/15]
View answerWritten answers
I am advised by the Revenue Commissioners that farmers may avail of a number of tax reliefs. The table below shows the main reliefs used by farmers, and their cost to the Exchequer, for which data are available to Revenue.
|
Tax |
Relief |
Numbers Availing |
Tax Cost €m |
|
Income Tax |
General Stock Relief |
8,950 |
5.2 |
|
Income Tax |
Stock Relief for Young Trained Farmers |
310 |
1.1 |
|
Income Tax |
Stock Relief for Registered Farm Partnerships |
30 |
0.1 |
|
Income Tax |
Exempt Rental Income from Leasing of Farm Land |
4,370 |
7.3 |
|
Capital Gains Tax |
Retirement Relief within the Family |
211 |
117* |
|
Capital Gains Tax |
Retirement Relief outside the Family |
341 |
53* |
|
Capital Acquisitions Tax |
Agricultural Relief** |
1,581 |
164 |
|
Stamp Duty |
Young Trained Farmers Relief |
722 |
4.7 |
* Figures reflect the disposal consideration amount rather than the tax cost.
** This relief may be claimed by non-farmers in some cases.
Departmental Staff Redeployment
Questions (70)
Seamus Kirk
Question:70. Deputy Seamus Kirk asked the Minister for Finance if he will provide in tabular form the total number of staff under the remit of his Department that have applied to be transferred to Department or State agency offices located outside the Dublin region; and if he will make a statement on the matter. [35294/15]
View answerWritten answers
I am aware of five staff who have applied through the Human Resources Unit of my Department to be transferred to Departments outside the Dublin region including my Department's Office in Tullamore. I wish to inform the Deputy there are a few ways for staff to apply for a transfer to other Departments and Offices including applying directly to the Department/Office and applying for a "Head to Head" transfer through their Union Magazine. My Department would not be aware of such applications.
Flood Relief Schemes
Questions (71)
Michael Creed
Question:71. Deputy Michael Creed asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 87 of 30 September 2015, if he is awaiting receipt of a report from the Office of Public Works due to be prepared by the engineering firm referred to therein; if so, when he expects to receive this report; and if he will make a statement on the matter. [34753/15]
View answerWritten answers
The Office of Public Works (OPW) is not awaiting a report from the consulting engineering firm referred to by the Deputy in relation to minor flood relief works carried out at Inchigeela, Co Cork.