Written Answers Nos. 70-75
70. Deputy Billy Timmins asked the Minister for Finance to set out the number of publican licences issued for each of the years 2011 to 2014 and 2015 to date by category and based on the cost of licence; and if he will make a statement on the matter. [40885/15]
View answerI am advised by the Revenue Commissioners that the number of publican licences issued during the licensing years (i.e. years ended 30 September) 2011 to 2015 inclusive, broken down by category based on cost of licence, are as set out in the following table.
Number of Publican Licences Issued 2011 to 2015.
|
Turnover Band € |
Duty/Cost |
No. Issued 2011 |
No.Issued 2012 |
No. Issued 2013 |
No. Issued 2014 |
No. Issued 2015 |
|
0 - 190,499 |
€250 |
3,830 |
4,096 |
4,273 |
4,335 |
4,243 |
|
190,500 - 380,999 |
€505 |
2,162 |
2,020 |
1,954 |
1,897 |
1,876 |
|
381,000 - 634,999 |
€1,140 |
1,018 |
916 |
839 |
783 |
780 |
|
635,000 - 952,499 |
€1,775 |
525 |
462 |
447 |
453 |
479 |
|
952,500 - 1,269,999 |
€2,535 |
252 |
231 |
221 |
229 |
226 |
|
1,270,000+ |
€3,805 |
418 |
363 |
341 |
325 |
351 |
|
Totals |
8,205 |
8,088 |
8,075 |
8,022 |
7,955 |
71. Deputy Billy Timmins asked the Minister for Finance to set down the amount of value added tax paid by holders of publican licences by category band of licence for each of the years 2011 to 2014, inclusive; and if he will make a statement on the matter. [40886/15]
View answerI am informed by the Revenue Commissioners that it is not possible to furnish the amount of VAT paid by holders of publican licences by category band of licence. Data is not compiled in this format, because it would give a very unreliable picture of the licensed trade, including trade that has no connection with the licence, and excluding some trade where the VAT is paid by an entity other than the licence holder. Taxpayers are not required to give a breakdown of VAT by product type so it is not possible to distinguish alcohol from other sales.
A better, though still imprecise, estimate of the value of the publican and connected businesses can be obtained by using the NACE System which designates the various statistical classifications of economic activities. It is possible to provide an estimated VAT yield for all businesses that describe their main activity as "Beverage Serving Activities", NACE Code 5630.
|
Year |
Estimated VAT Yield €m |
|
2011 |
235 |
|
2012 |
228 |
|
2013 |
224 |
|
2014 |
218 |
It should be noted that NACE Code 5630 contains the following economic activities: Airport bar or lounge, Bar (mainly) and grocery, Bars, Beer garden, Beer halls, Beer parlours, CIE bar or lounge (incl. train bar), Cocktail lounges, Discotheques (with beverage serving predominant), Fruit juice bars, Inn, Licensed bar, Licensed premises, Licensed victualler (public house), Lounge bar with meals, Mobile beverage vendors, Nite-clubs (licensed to sell alcohol), Pub with meals, Public houses, Publican (mainly) and grocery, Publican and vintner, Social clubs (licensed to sell alcohol), Vintner, Coffee shops, Licensed vintner, Taverns.
72. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which he remains satisfied regarding future economic growth and the ability to avoid inflationary tendencies in the economy; and if he will make a statement on the matter. [40891/15]
View answer75. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which Ireland's credit rating has fluctuated over the past ten years, as determined by the international rating agencies; the extent to which improved trends continue to impact on the country's economic prospects; and if he will make a statement on the matter. [40894/15]
View answer78. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which the economy continues to remain competitive when compared to other competing jurisdictions within the European Union and without; and if he will make a statement on the matter. [40897/15]
View answer82. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which any sector of the economy tends to overheat, having regard to previous experience; if corrective action is required to be taken on an ongoing basis; and if he will make a statement on the matter. [40901/15]
View answer85. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which the current economic indicators remain in line with best practice; whether this is likely to generate positive economic activity over the next five years; and if he will make a statement on the matter. [40904/15]
View answerI propose to take Questions Nos. 72, 75, 78, 82 and 85 together.
In general, recent indicators have been positive, indicating that the recovery is strengthening in a more sustainable manner. The latest data show 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 Budget 2016, published in October of this year, my Department forecast that the economy would grow by 6.2 per cent in 2015 and 4.3 per cent in 2016.
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 twelve successive quarters of solid annual employment growth. As a result, the unemployment rate has fallen by over 6 percentage points since its peak in early 2012.
The recovery is also helping improve Ireland's credit rating. The impact of the economic and financial crisis resulted in a number of rapid downgrades to Ireland's credit rating. For example, Moody's reduced Ireland's rating from AAA to sub investment grade within 24 months. Importantly, Moody's returned Ireland to investment grade at the start of 2014 as the Government's fiscal and economic strategy began to bear fruit. 2014 also saw Standard and Poor's and Fitch increase their credit ratings to an A rating.
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 a number of factors including sustainable public finances, maintaining our competitiveness position and ensuring inflationary pressures remain in check over the medium term.
Substantial progress has been made in terms of improving Ireland's competitiveness in recent years. There has been a significant improvement in Ireland's economy-wide cost competitiveness. The European Commission in its autumn forecasts estimated that relative unit labour costs in Ireland fell by 1.6 per cent annually in 2015. This is one of the largest declines across all EU Member States and compares with a 0.4 per cent fall in the EU, and increases of 1.2 per cent in the UK and 0.3 per cent in the US over the same period. Competitiveness gains have been achieved through productivity improvements. In fact, according to Commission forecasts, Ireland experienced the fastest productivity growth in the EU this year.
It is vitally important that this competitiveness is preserved and continues to support growth. We must also be cognisant that recent favourable exchange rate movements and gains from the fall in oil prices may unwind in the future. Therefore, we need to stay focused on continuing to improve Ireland's competitiveness through other channels such as wage and price restraint and productivity improvements.
For instance, relatively low consumer price inflation over the last five years has meant that Irish price levels have fallen considerably relative to our euro area peers. In fact, annual HICP inflation in Ireland has been below that of the euro area average for every year since 2008.
Inflationary pressures remain subdued with annual HICP inflation at 0.0 per cent to end-October. 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 1.2 per cent over the past year. 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.
As well as monitoring the overall performance of the economy, my Department also monitors individual sectors on an ongoing basis. Key sectors of the economy are subject to scrutiny as part of this process and inflation is one, of many, economic indicators that is carefully analysed. My approach has been to help rebuild the economy sector-by-sector, by implementing targeted measures to support the most affected sectors. Government policy will continue to monitor for and to guard against the build-up of sectoral imbalances and to avoid over-dependence on a single sector, as was previously the case with Ireland's construction sector.
73. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which he continues to monitor the manner in which the various banks continue to accommodate customers who have found themselves in difficulty during the past number of years, with particular reference to the need to ensure a positive accommodation; and if he will make a statement on the matter. [40892/15]
View answer83. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which the level of mortgage arrears continues to be managed in a way that accommodates the circumstances of borrowers; and if he will make a statement on the matter. [40902/15]
View answerI propose to take Questions Nos. 73 and 83 together.
The Deputy will be aware that the Central Bank publishes Residential Mortgage Arrears and Repossessions Statistics on a quarterly basis.
Statistics for quarter 2 of this year were published in early September. This publication provided further evidence that progress is being made in addressing 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. 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, 86.3 per cent of which were deemed to be meeting the terms of their current restructure arrangement.
Based on Central Bank data, mortgage accounts with no arrears now make up 87% of all mortgage accounts. The continuing improvement in data trends shown in the Central Bank quarter 2 mortgage arrears returns are welcome and show that where there is meaningful engagement between lender and borrower, in the majority of cases an outcome that is beneficial to both parties can be reached.
In addition my Department continues to monitor and publishes Mortgage Restructures data on a monthly basis that covers mortgage accounts for the six main lenders. The figures in the latest publication for September 2015 (published on 12 November 2015) show that Primary Dwelling Home (PDH) mortgage accounts in arrears continue to decline and now stand at 73,060 representing an improvement of almost 24% compared to September 2014.
In conclusion, I must reiterate that active engagement by indebted borrowers with their lender is key to achieving a sustainable resolution, and I would urge borrowers in arrears, who have not already done so, to take that first step by contacting their lender directly or MABS for an independent assessment of their situation and advice on available resolution options.
74. Deputy Bernard J. Durkan asked the Minister for Finance to outline the extent to which he expects credit availability to small and medium-sized enterprises to improve in line with requirements; and if he will make a statement on the matter. [40893/15]
View answerIn terms of credit availability to SMEs from the banking sector, I would draw the Deputy's attention to the recently published Department of Finance SME Credit Demand Survey April - September 2015 (http://www.finance.gov.ie/sites/default/files/Dept%20of%20Finance%20SME%20Credit%20Demand%20Survey%20Report%20-%20Apr-Sep%202015_0.pdf). A total of 1,500 telephone interviews were conducted with a random sample of Irish micro, small and medium SMEs. The survey shows that, when pending applications are excluded, 85% of credit applications to banks were approved or partially approved. Both AIB and Bank of Ireland have increased new lending significantly year on year. Bank of Ireland recently announced new credit approvals for Irish businesses to the end of September 2015 of €3.6 billion, up c.13% on the same period last year. Permanent TSB have also recently commenced lending to SMEs. The Credit Review Office (CRO) continues to review loan applications which have been rejected by the banks and is overturning 55% of appeals. I would encourage any SME who has had a credit application declined to avail of the services of the CRO (http://www.creditreview.ie/).
The Strategic Banking Corporation of Ireland's (SBCI) mandate and objectives include the fostering and driving of competition in SME lending through the provision of low cost long term funding to both banks and non-bank providers of credit to SMEs. In doing so, it seeks to facilitate the growth of smaller participants and the entry of new market participants by providing them with the low cost liquidity that will enable them to compete with the larger banks. SBCI funding is offered on substantially the same terms and the same price to all SME credit providers that are credible, credit worthy, can meet its operational requirements and pass on the benefit of the lower cost funding to their SME clients. This creates a new forum for competition in the use of SBCI funding between banks and non-banks and enables emerging and newly entering SME credit platforms to grow their businesses. Over 3,200 Irish SMEs benefitted from SBCI loans in the SBCI's first seven months in operation (March to September 2015), borrowing €110 million in total through AIB and Bank of Ireland. More recently, the SBCI has announced its support for two strong emerging non-bank providers of credit to SMEs with a €50 million facility now up and running with Finance Ireland, a provider of leasing and hire purchase financing for vehicles and equipment and a €25 million facility with Merrion Fleet, which provides vehicles and fleet management services to SMEs at a lower cost. Furthermore the SBCI has a pipeline of new SME credit providers that it intends to bring to the market over the next six months and beyond, which will further enhance competition and support new types of finance in the market. Further details of the SBCI's current supported products and where they may be accessed are available on its website (http://sbci.gov.ie/).
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, is bringing 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.
With over €2bn of Government supports available to small business in Ireland from over 20 Departments and Agencies, it is vital that SMEs can quickly access information on this range of supports available to them. With this in mind, the Supporting SMEs Online Tool, a cross-government initiative, was launched in May 2014. On answering 8 simple questions, the small business will receive a list of available Government supports. The Supporting SMEs Online Tool is available at www.supportingsmes.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. In this context, the Action Plan for Jobs 2015 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.
