Michael McGrath
Question:128. Deputy Michael McGrath asked the Minister for Finance the number of households in negative equity; the implications of this for the wider economy; and if he will make a statement on the matter. [45945/15]
View answerNegative Equity Mortgages Data
Questions (128)
Written answers
Negative equity occurs when the price of a property falls below the value of the outstanding mortgage secured on that property. I have been informed by the Central Bank of Ireland that it does not publish a regular series of data on mortgages in negative equity. Neither do officials in my own Department collect such data. The Central Bank's latest Household Credit Market Report, at http://www.centralbank.ie/publications/Documents/Household%20Credit%20Market%20Report%202015H2.pdf, presents the percentage of loans in negative equity by the origin year of the mortgage (Figure 17, HCMR H2 2015). These data are for December 2014 and do not reflect changes to loan balances and house prices since December 2014.
However, the Deputy may wish to note that the ESRI's Summer Quarterly Economic Commentary provides the most recently available research on the number of mortgages that are in negative equity and can be accessed at http://www.esri.ie/pubs/QEC2015SUM.pdf. This report shows that the estimated number of those who are in negative equity continues to decline with the rise in residential property prices.
According to the ESRI's analysis, the number of mortgages, nationally, estimated to be in negative equity reached close to 315,000 at the end of 2012 but has continued to decline since, with an estimated 267,000 in negative equity in 2013 and just over 161,000 in December 2014. Based on residential price developments for this year, it is now estimated that somewhere in the region of 100,000 mortgages are likely to be in negative equity by the end of 2015.
Residential property price increases are relevant in alleviating the extent of negative equity and household over-indebtedness and this has important implications for the wider economy. The reduction in negative equity should improve mobility amongst those affected, encourage spending on home improvements and maintenance, and increase consumption via the wealth effect.
Tax Data
Questions (129)
Michael McGrath
Question:129. Deputy Michael McGrath asked the Minister for Finance the number of recipients of the single person child carer tax credit in 2015 to date and how this compares to the one-parent family tax credit when it applied. [45946/15]
View answerWritten answers
The Revenue Commissioners advise that the information requested is being compiled and is not available within the timeframe allowed. A full response will be sent to the Deputy as soon as the information is available.
Infrastructure and Capital Investment Programme
Questions (130)
Michael McGrath
Question:130. Deputy Michael McGrath asked the Minister for Finance the number of projects funded by the Irish Infrastructure Fund since its inception, including the nature of such projects and the number of jobs created; and if he will make a statement on the matter. [45947/15]
View answerWritten answers
The Irish Infrastructure Fund (IIF) was established by Irish Life Investment Managers, with AMP Capital appointed as the fund's discretionary investment manager. The objective of the IIF is to provide long term investors with a stable income yield as well as the potential for capital growth deriving from a substantial portfolio of assets which underpin the Irish economy. The Ireland Strategic Investment Fund (ISIF) has a commitment of €250 million to the IIF.
The IIF has thus far completed three investments. The first investment was the acquisition of a controlling stake in a portfolio of wind farms from Viridian Group in 2012. The IIF completed a second investment in 2013 when it acquired Towercom, Ireland's largest independent wireless telecoms infrastructure company. The IIF's most recent investment was completed in July 2015, when it acquired the concession contract to operate and maintain The Convention Centre Dublin, with the investment also including a license to build and operate an approximately 330-bed hotel on a site adjacent to The Convention Centre.
The IIF has in the course of 2015 secured investor commitments to over €400 million, including the ISIF commitment, with 14 institutional investors participating in the funding round to complete the most recent CCD investment. The IIF has an on-going pipeline of investment opportunities that it is actively evaluating and it is currently hoped that an additional investment will be undertaken in the coming months. The IIF is also continuing to meet with both domestic and international investors with a view to raising additional capital.
Information on the economic impact of ISIF's investments, including employment, is published on a bi-annual basis. Due to commercial sensitivities the ISIF does not report on economic impact at individual transaction level, but instead at the aggregate portfolio level. Updated economic impact figures show that as at end-December 2014, ISIF, through its investment activities, was supporting 12,005 jobs in the Irish economy. Interim economic impact figures for the first half of 2015 will be published in the coming days.
Deposit Protection Account
Questions (131)
Michael McGrath
Question:131. Deputy Michael McGrath asked the Minister for Finance the balance in the deposit protection account at the end of each year from 2011 to date and currently. [45948/15]
View answerWritten answers
The current amount in the deposit protection account is €396m.
The balance at the end of each year from 2011 to 2014 is as follows: 2011 - €435m; 2012 - €403m; 2013 - €380m; and 2014 - €392m.
The Deputy should note however that as a result of the transposition of the Deposit Guarantee Scheme (DGS) Directive (2014/49/EU), the deposit protection account will shortly have no role in a deposit protection context. This is due to the new Deposit Guarantee Regulations (S.I. No. 516 of 2015) requiring annual contributions to be made to a new deposit contributory fund established under these regulations. The requirement is to build the deposit contributory fund up to a level of 0.8% of covered deposits (circa €680m) of all credit institutions authorised in the State by 3 July 2024. This will mean an annual contribution by participating credit institutions of approximately €85m.
In order to facilitate the move from the deposit protection account to the deposit contributory fund, Part 3 of the Finance (Miscellaneous Provisions) Act 2015, introduced a funding arrangement known as a legacy fund. Under this arrangement the Central Bank will shortly transfer 0.2% of covered deposits or €180m from the deposit protection account to the new legacy fund, in order to provide a backstop to the deposit contributory fund in the early years while it is being built up. The balance of deposit protection account funds will be returned to credit institutions, as there is no longer any legal basis to hold onto this money.
The reason the level of 0.2% of covered deposits was chosen is that it will ensure that all credit institutions will contribute proportionately the same amount to the legacy fund, and therefore to a DGS pay-out should the contributory fund have insufficient resources during the three-year operational period of the legacy fund.
IBRC Liquidation
Questions (132)
Michael McGrath
Question:132. Deputy Michael McGrath asked the Minister for Finance the amount of loans outstanding to former directors of Anglo Irish Bank and the Irish Nationwide Building Society; and if he will make a statement on the matter. [45949/15]
View answerWritten answers
I am advised by the Special Liquidators that they are not in a position to comment on individual cases. They have further advised that the information requested is confidential and it would not be appropriate for them to release such information.
Credit Unions
Questions (133)
Michael McGrath
Question:133. Deputy Michael McGrath asked the Minister for Finance the amount of fees charged to date by the special managers appointed to credit unions; and if he will make a statement on the matter. [45950/15]
View answerWritten answers
I have been informed by the Central Bank that the only Special Manager appointment to a credit union to date was the appointment of Mr Luke Charlton of Ernst &Young to act as Special Manager for Newbridge Credit Union Limited.
From 13 January 2012 to 26 April 2013 a total of €1.25 million in Special Manager fees was approved by the High Court. At an early point the Special Manager reduced the hourly rates from €423 to €375 with the approval of the High Court, including a corresponding reduction for his staff.
The Special Manager had not been paid any fees between 26 April 2013 and the point of transfer to Permanent TSB (PTSB) on 11 November 2013. The transfer order included a Special Manger fee accrual liability for PTSB, and PTSB later discharged it. The amount invoiced for that period was €502,638.
Therefore, the total amount paid to the Special Manager in respect of his tenure was approximately €1.75 million.
NAMA Assets Sale
Questions (134)
Michael McGrath
Question:134. Deputy Michael McGrath asked the Minister for Finance the value of artwork, jewellery and other goods disposed of by the National Asset Management Agency; and if he will make a statement on the matter. [45951/15]
View answerWritten answers
I am been advised by NAMA that it has approved disposals by debtors and receivers of non-real estate assets with an aggregate value in excess of €486m. Such assets include shares and other investments as well as artwork, jewellery, fixed assets other goods.
Deposit Guarantee Scheme
Questions (135)
Michael McGrath
Question:135. Deputy Michael McGrath asked the Minister for Finance the value of deposits covered by the deposit guarantee scheme; and if he will make a statement on the matter. [45952/15]
View answerWritten answers
The Central Bank of Ireland is responsible for the operation of the Deposit Guarantee Scheme (DGS), which covers licensed credit institutions operating in the State. The DGS covers deposits up to €100,000 per eligible depositor per credit institution. The amount of covered deposits currently stands at approximately €89.6bn.
Tax Data
Questions (136)
Michael McGrath
Question:136. Deputy Michael McGrath asked the Minister for Finance the amount owing by businesses to the Revenue Commissioners under each tax heading; the age profile of the arrears; and the steps the Revenue Commissioners are taking to engage with businesses currently struggling to meet their tax liabilities. [45953/15]
View answerWritten answers
I am advised by Revenue that it reports on the tax debt as at 31 March each year.
On 31 March 2015 the total outstanding debt amounted to €1.69 billion. However, this figure included €701m of debt under appeal to the Appeal Commissioners and €87m of insolvency debt.
The remaining amount of €907 million is regarded as a more accurate indicator of the actual debt that was available to Revenue for collection. Of this amount, €384m was under active enforcement and a further €112m was the subject of phased payment arrangements at 31 March 2015. The remaining €411m was at various other stages of the debt collection cycle, for example at 'Demand' stage or 'Negotiation' stage.
The following table provides an aged analysis breakdown of the 'Debt Available for Collection' amount due under each tax heading at 31 March 2015.
Revenue has confirmed to me that it continues to actively encourage viable businesses experiencing cash-flow or payment difficulties to make contact as soon as such problems start to arise to find an agreed way through the difficulties and restore timely tax payment compliance as quickly as possible. The €112m collected under phased arrangements is a direct result of Revenue's approach in this regard.
Age Analysis of Debt Available for Collection by Year of Assessment as at 31/03/2015 (Total €M)
|
Year |
Income Tax |
Corporation Tax |
Capital Gains Tax |
Pay As You Earn |
Pay Related Social Insurance |
Universal Social Charge |
Relevant Contract Tax |
Value Added Tax |
Capital Acquisitions Tax |
Total |
|
to 2007 |
94 |
2 |
44 |
6 |
7 |
0 |
10 |
59 |
6 |
228 |
|
2008 |
31 |
4 |
7 |
4 |
6 |
0 |
3 |
31 |
3 |
88 |
|
2009 |
28 |
2 |
4 |
5 |
7 |
0 |
1 |
30 |
1 |
78 |
|
2010 |
32 |
2 |
3 |
6 |
8 |
0 |
1 |
32 |
2 |
85 |
|
2011 |
42 |
2 |
2 |
12 |
8 |
0 |
1 |
14 |
2 |
83 |
|
2012 |
47 |
4 |
3 |
11 |
9 |
0 |
0 |
21 |
5 |
99 |
|
2013 |
94 |
5 |
5 |
10 |
16 |
8 |
1 |
11 |
5 |
156 |
|
2014 |
4 |
22 |
3 |
69 |
73 |
24 |
3 |
-121 |
12 |
89 |
|
Total |
373 |
43 |
69 |
121 |
135 |
32 |
20 |
76 |
35 |
907 |
Illicit Trade in Tobacco
Questions (137)
Michael McGrath
Question:137. Deputy Michael McGrath asked the Minister for Finance the revenue lost on illegal black market cigarettes in each of the years from 2011 to date; and if he will make a statement on the matter. [45954/15]
View answerWritten answers
I am advised by the Revenue Commissioners that the extent of the illegal trade in cigarettes is estimated through annual surveys that are carried out for them and for the Health Service Executive National Tobacco Control Office by Ipsos MRBI. The results of these surveys for 2011, 2012, 2013 and 2014 suggest that the losses to the Exchequer in excise duty and VAT attributable to the illegal trade in cigarettes were €258 million, €240 million, €212 million and €214 million respectively. The estimates are based on the assumption that the illegal cigarettes consumed displace the equivalent full tax paid quantities of cigarettes.
A further survey in respect of 2015 is underway and it is expected that the results will be available towards the end of the first quarter of 2016.
Petrol Stretching
Questions (138)
Michael McGrath
Question:138. Deputy Michael McGrath asked the Minister for Finance the number of complaints of petrol stretching received by the customs and excise service in each of the months since January 2014; the number investigated and ongoing, by county; and if he will make a statement on the matter. [45955/15]
View answerWritten answers
I am advised by the Revenue Commissioners that, from mid-2014 on, they began to receive reports from a variety of locations around the country of problems relating to petrol quality, and suggestions that these problems were attributable to petrol stretching.
The numbers of complaints on this matter received in each month from July 2014 to December 2015 are set out in the following table. No complaints were received from June 2015 to November 2015 inclusive.
|
Month |
July 2014 |
Aug. 2014 |
Sept. 2014 |
Oct. 2014 |
Nov. 2014 |
Dec. 2014 |
Jan. 2015 |
Feb. 2015 |
March 2015 |
April 2105 |
May 2015 |
Dec. 2015 |
|
No. of complaints |
1 |
12 |
28 |
34 |
42 |
11 |
6 |
3 |
4 |
1 |
1 |
1 |
Every filling station about which a complaint was made was visited by Revenue officers and petrol samples were taken and referred to the State Laboratory for scientific analysis. Despite this extensive programme of sampling and analysis, evidence of the presence of prohibited stretching agents was found in only two samples, both from one location in County Louth. The conclusive results from those tests led to the seizure of the fuel concerned. Cases are currently before the Courts in relation to those detections.
I am assured by the Revenue Commissioners that they fully recognise the serious threats that fuel fraud poses to legitimate businesses, motorists and Exchequer revenues, and I am satisfied that Revenue will continue to fulfil their responsibilities for combatting such fraud through a wide-ranging and effective programme of compliance and enforcement actions.
Universal Social Charge Yield
Questions (139)
Michael McGrath
Question:139. Deputy Michael McGrath asked the Minister for Finance the proportion that the universal social charge represents of all income tax receipts in each year since its inception; the projected percentage in 2015 and 2016; and if he will make a statement on the matter. [45956/15]
View answerWritten answers
As the Deputy is aware, the Universal Social Charge (USC) was introduced in Budget 2011 replacing the Income and Health Levies. It was a necessary measure to widen the tax base, remove poverty traps and raise revenue to reduce the budget deficit.
The data requested by the Deputy is set out in the following table. It is important to take into account that the figures displayed for 2011, 2012, 2013 and 2014 in the table are based on end-year outturns and are on a Revenue Net Receipts basis. These can differ slightly from Exchequer Receipts for reasons of accounting and timing. The estimates and projected percentages for 2015 and 2016 are in respect of the most up to date forecast as contained in Budget 2016.
|
Year |
Total USC Receipts €million |
Total Income Tax Receipts (Including USC Receipts) €million |
Total USC Receipts as a % of total Income Tax Receipts |
|
2011 |
€3,114 |
€13,812 |
22.5% |
|
2012 |
€3,790 |
€15,151 |
25.0% |
|
2013 |
€3,930 |
€15,752 |
24.9% |
|
2014 |
€3,647 |
€17,133 |
23.2% |
|
2015 (f) |
€4,225 |
€18,200 |
23.2% |
|
2016 (f) |
€3,995 |
€18,995 |
21.0% |
In the normal course of processing returns, there is some minor reapportionment between PAYE and PAYE receipts but it should be noted that the 2014 PAYE and PAYE USC outturns were impacted by more significant adjustments than usual to reapportionment receipts between these two headings to correct an initial estimated allocation used in 2013 (for the period January to June 2013). The net Exchequer effect of the reapportionment is and will remain neutral.
As the Deputy will be aware, a significant USC package was introduced in Budget 2016, which reduces the expected USC receipts in 2016, as indicated in the table.
Central Bank of Ireland Staff
Questions (140)
Michael McGrath
Question:140. Deputy Michael McGrath asked the Minister for Finance the number of contract outsourced staff employed at the Central Bank of Ireland, the roles they perform and their daily salaries, in tabular form; and if he will make a statement on the matter. [45958/15]
View answerWritten answers
The Central Bank has informed me that it currently has 65 contractors engaged. For commercial reasons it is not possible to disclose individual daily rates, however the average daily rate paid to these contractors is €478 (excluding VAT). The number of contractors varies from time to time and is determined by the business needs of the Bank.
The daily rate paid is determined by the role performed. These roles vary from temporary roles such as the provision of maternity leave cover to the engagement of specialists. These contractors are engaged via the completion of competitive tender processes.
These numbers include a significant number of IT resources and reflects the current number of IT projects underway and also the dynamics of the IT market place.
|
Role |
Number of Contractors |
|
Quality and Test Resources |
21 |
|
Solution Developers and Designers |
12 |
|
Temporary Administrators |
11 |
|
Project and Programme Managers |
10 |
|
Service Desk Resources |
6 |
|
IT Security Specialists |
3 |
|
Business System Analyst |
1 |
|
HR Consultant |
1 |
|
Total Number of contract, outsourced staff |
65 |