Written Answers Nos. 40-45
40. Deputy Pearse Doherty asked the Minister for Finance the number of banks that have decreased their standard variable interest rates in 2015; the size of these changes; and his plans to legislate to allow the Central Bank of Ireland to cap these rates. [40343/15]
View answerAs the Deputy will be aware, I have taken steps to ensure that banks provide options for mortgage holders to reduce their repayments. Last May, I met with the six main mortgage lenders and outlined my view that the standard variable rate being charged to Irish customers was too high. 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. In September I concluded a series of follow up meetings with these banks and the reality is that the majority have put options in place to allow borrowers reduce their repayments.
It is up to the individual banks themselves to advertise their rates and products but as I am sure you are aware, some banks have focussed on fixed rate offerings or rates based on loan-to-value, while others have reduced their variable rates. I had asked the banks to provide options by which borrowers could reduce their monthly repayments and I believe options have been put in place.
Obviously, it is a matter for each individual borrower to decide what suits their circumstances but I encourage borrowers to contact their bank to see what is available to them or consider moving to another bank, where possible, if the offer is not satisfactory. For example, some fixed rates are now substantially lower than some variable rate products and therefore could result in significant savings for customers.
The reality of the situation is that the majority of lenders have put options in place to allow borrowers reduce their repayments, however my Department will continue to keep the situation under review.
There has been discussion in the public domain regarding whether the regulation of interest rates would lead to a reduction in mortgage costs for borrowers. I believe that competition rather than regulation represents the best long term solution to this issue and Central Bank and ESRI research supports this position.
In this regard, the Governor of the Central Bank has indicated his opposition to the administrative control of interest rates. While he acknowledged that a reduction in bank interest rates benefit the economy at large, it was his firm belief that the introduction of administrative control on interest rates in Ireland would be bad for the country as a whole in the medium term including because of its negative effect on the entry of other banks to the market.
You will also be aware that on 12 November the Central Bank published a consultation paper on proposed increased protections for variable rate mortgage customers. This is called Consultation Paper CP98 and is available on their website. The suggested measures fall under three broad categories:
- Lenders would be required to publish a summary statement of the factors that impact on their variable rate and the criteria and procedures that apply to setting such rates;
- On an annual basis lenders would be required to notify variable borrowers of alternative mortgage options. They would also have to notify borrowers of these options when increasing SVR rates and provide borrowers with a link to the Competition and Consumer Protection (CCPC) website to assist borrowers who wish to switch;
- The Central Bank is consulting on increasing the notification period for variable rate increases (it is currently 30 days) and they are also consulting on a proposal to require the lender to state the reason for changing the rate.
The closing date for submissions to the public consultation is 12 February 2016.
41. Deputy Micheál Martin asked the Minister for Finance the status of the Economic and Social Research Institute report on Brexit; and if he will make a statement on the matter. [40011/15]
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 of 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; Ireland is perhaps the Member State which would be most affected by any change in the EU/UK relationship. It is the Government's stated position 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. In this regard, Government Departments, including my own, have been working on this matter for some time. Under the Department of Finance/Economic and Social Research Institute (ESRI) research programme agreement, my Department commissioned research to be undertaken on scoping the potential economic implications on Ireland of a change in the EU/UK relationship. The research was published on 5 November and is an important contribution in deepening our understanding of the potential issues arising. Although the research was commissioned under the Department of Finance/ESRI research programme agreement, it is important to underline that the ESRI is an independent institution.
42. Deputy Mary Lou McDonald asked the Minister for Finance the number of freedom of information requests made to the National Asset Management Agency; of the number submitted, the number that were denied or rejected; the reasons for their denial or rejection; and if he will make a statement on the matter. [40613/15]
View answerThe National Asset Management Agency (NAMA) became subject to the Freedom of Information (FOI) Act, 2014 on 14 April 2015. Since that date, NAMA has received a total of 97 requests. In a significant number of cases, each request contained a number of separate parts to the request amounting to 239 in total.
The Freedom of Information Act sets out a number of standard exemptions, which serve to protect certain information. Among the exemptions are those which relate to personal information, information covered by legal privilege, records relating to parliamentary matters, information relating to law enforcement and public safety, information obtained in confidence, commercially sensitive information and information which impacts upon the financial and economic interests of the State. In addition, certain records relating to purchasers or potential purchasers of assets or loans, market counterparties or investors or potential investors in projects, fall outside the scope of Freedom of Information, as set out in Schedule 1, Part I of the Act.
A total of 29 requests out of 97 have been refused by NAMA, according to the exemptions as set out under the Act. In a number of cases, a number of exemptions have been applied to the request. Further details are set out in the following table.
In 13 cases the requests have been refused because the information is not held by NAMA. In a number of other instances, the records being sought by third parties relate to the commercial and personal information of NAMA debtors and their loans.
|
Exemption applied |
Exemption |
No. of requests where exemption is applied |
|
15(1)(a) |
Record does not exist |
13 |
|
15(1)(d) |
Record is already in the public domain |
2 |
|
15(1)(e) |
Publication of the record due within 12 weeks of date of the request |
1 |
|
15(1)(c) |
The number or nature of the records concerned would cause a substantial and unreasonable interference with the FOI Body |
1 |
|
29(1) |
Deliberative process of an FOI body |
3 |
|
30(1)(b) |
Adverse impact upon performance of an FOI body of its functions. |
5 |
|
30(1)(c) |
Disclose positions taken for the purpose of negotiations or future negotiations |
5 |
|
32(1)(a)(ii) |
Prejudice or impair the enforcement of, compliance with or administration of any law |
1 |
|
31(1)(a) |
Legal privilege |
3 |
|
35(1)(b) |
Disclosure would constitute breach of a duty of confidence |
14 |
|
36(1)(b) |
Commercially sensitive information |
5 |
|
37(1) |
Personal Information |
10 |
|
40 |
Financial & economic interests of the State |
3 |
|
41(1)(b) |
Non-disclosure covered by enactment |
16 |
|
Schedule 1 |
|
3 |
43. Deputy Peadar Tóibín asked the Tánaiste and Minister for Social Protection the first-year and full-year cost of increasing the employer pay related social insurance rate of 8.5% from €376 to €377. [40856/15]
View answerCurrently the class A PRSI employer rate of 8.5% applies to weekly earnings between €38 and €356. Once weekly earnings exceed €356, the employer is liable to pay PRSI at 10.75%, on all earnings.
From 1 January 2016 the threshold for charging the higher 10.75% rate of employer PRSI will increase from €356 to €376. This measure will cost €6.9 million in a full year and will mean that an estimated 26,037 employers, currently paying the higher 10.75% rate, will move to the lower 8.5% rate of employer contribution.
This measure will address the concerns of the Low Pay Commission in relation to the impact of the minimum wage on small business costs. It ensures that employers with employees benefitting from the increase in the minimum wage will continue to attract the lower 8.5% rate of employer PRSI.
Increasing this threshold further from €376 to €377 would cost €0.3 million in the first year and in a full year.
44. Deputy Charlie McConalogue asked the Tánaiste and Minister for Social Protection when a review of an application for a domiciliary care allowance by a person (details supplied) in County Donegal will be completed; and if she will make a statement on the matter. [40751/15]
View answerA review of the decision to refuse domiciliary care allowance in this case was requested on 10 September 2015 and additional information on this child's condition/care needs has been supplied. The application together with the new information supplied has been forwarded to a medical assessor for their professional opinion. Following receipt of this opinion the application will be re-examined by a deciding officer and a revised decision will be made if warranted. The person concerned will be notified of the outcome of this review as soon as it is completed. Such reviews can take up to 12 weeks to complete at present.
45. Deputy Eric Byrne asked the Tánaiste and Minister for Social Protection her views on correspondence (details supplied) regarding training courses for the long-term unemployed; and if she will make a statement on the matter. [40767/15]
View answerI wish to advise the Deputy that this is a matter for my colleague the Minister for Education and Skills.
