Written Answers Nos. 25-30
25. Deputy Peter Fitzpatrick asked the Minister for Finance if he is monitoring the potential economic fallout from the possible exit of the United Kingdom from the European Union, in particular the consequences for the Border counties, including County Louth; and if he will make a statement on the matter. [8780/16]
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 our economy, for the ongoing development of the excellent bilateral relations between Ireland and the UK and of course for stability and prosperity in Northern Ireland; independent research indicates that Ireland is the EU Member State which would be most affected by any change in the EU/UK relationship.
In addition to the important bilateral considerations, we also believe that the EU itself is stronger and more effective with the UK as a member.
The UK's continued membership of the Union is therefore a matter of strategic importance 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 2015 and is an important contribution to understanding the potential issues arising, including the impacts across sectors and regions.
My Department, and other Government Departments, are working together to continue our assessment of all the issues involved in protecting Ireland's interests which include but are not limited to the counties mentioned - and we are continuing to explore the potential risks and to plan accordingly in the period up to 23 June 2016.
26. Deputy Peter Fitzpatrick asked the Minister for Finance the number of vacant houses in the possession of banks that receive State assistance; if he will provide this list to local authorities; and if he will make a statement on the matter. [8783/16]
View answerI am advised that the banks disclose information on their residential mortgage portfolios in various sections in their Annual Reports.
All relevant disclosures in relation to AIB's Republic of Ireland residential mortgages properties in possession and repossessions disposed of - are contained on page 109 of AIB's 2015 Annual Financial Report. AIB state that "AIB seeks to avoid repossession through working with customers, but where agreement cannot be reached, AIB proceeds to repossession of the property or the appointment of a receiver, using external agents to realise the maximum value as soon as is practicable." The annual report is available in the following link:
https://investorrelations.aib.ie/content/dam/aib/investorrelations/docs/resultscentre/annualreport/aib-annual-financial-report-2015.pdf.
Bank of Ireland disclose information on properties in possession and repossessions disposed of for their Retail Ireland Mortgage portfolio on page 370 of their annual report. A link to the 2015 Bank of Ireland report is available here:
https://investorrelations.bankofireland.com//wp-content/assets/BOI-Annual-Report-2015.pdf.
Permanent TSB ("PTSB") have informed me that all information in relation to properties in possession and repossessions is available on page 177 of the 2015 Annual Report. PTSB state that "Repossessed assets are sold as soon as practicable, with proceeds offset directly against outstanding indebtedness." PTSB's Annual Report is available at the following link:
http://www.permanenttsbgroup.ie/~/media/Files/I/Irish-Life-And-Permanent/Attachments/pdf/2015/ptsb-full-year-report-09-03-2016.pdf?
However for the benefit of the Deputy I include a table summarising some of these details:
Properties in possession at end 2015 (ROI)
|
- |
Owner Occupied |
Buy-to-Let |
Total |
|
AIB |
623 |
91 |
714 |
|
BOI |
120 |
47 |
167 |
|
PTSB |
211 |
196 |
407 |
|
Total |
954 |
334 |
1,288 |
Source: Annual Reports
As the Deputy may be aware the Relationship Framework agreements define the arm's-length nature of the relationship between the State and the banks in which the State has an investment, and as such each bank is individually responsible for managing their stock of repossessed properties. As noted in the annual reports cited repossessed properties are offered for sale by the banks using external agents as soon as practicable.
27. Deputy Michael McGrath asked the Minister for Finance the total amount the National Asset Management Agency has written off for debtors on its books, the number of debtors involved, the number of arrangements it has reached with debtors in respect of their personal exposure on company borrowings; and if he will make a statement on the matter. [8800/16]
View answerI am advised that, as at 31 December 2015, NAMA had agreed debt write-offs of a total of €1.5bn of Par Debt. This equates to 2% of the original par debt acquired by NAMA from the Participating Institutions. I am also advised that the total number of debtors who received par debt write-offs is 80. Debt is only written off where all of the underlying assets have been realised, there are no further assets to be realised nor any additional recourse available to NAMA to recovery borrowings from the debtor. This information is to be disclosed in NAMA's 2015 Annual Report, which is to be published towards the end of May 2016.
The Deputy will note that NAMA enters into such arrangements with debtors where it is expected that the exit arrangement will maximise the return to the State. I am advised that this may include debt compromise, as noted above, or settlement arrangements for a fixed number of years post exit.
I am further advised that, in certain cases, where the debtor has met certain stringent or 'stretch' targets set by NAMA, an arrangement may be entered into with that debtor to release them from their personal exposure, where there is no further prospect of recovery of borrowings from that debtor. Such arrangements have no impact on the return to NAMA in cases where no value can be recovered through the personal guarantees. That notwithstanding, the Deputy will note that NAMA has leveraged personal guarantees to obtain more than €900m in additional security for its loans, primarily by obtaining charges over previously unencumbered assets and through the reversal of prior asset transfers.
28. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding the financial transactions tax including if this tax will raise an extra €360 million per year; and if he will make a statement on the matter. [8803/16]
View answerThe document referred to in the correspondence mentioned by the Deputy is a Nevin Economic Research Institute (NERI) working paper which I note is work-in-progress.
Ireland already has a tax on financial transactions, a Stamp Duty on transfers of shares in Irish incorporated companies, which currently stands at 1%. I am informed by the Revenue Commissioners that the yield from this charge in 2015 was €424.13 million which is over €100 million higher than the estimated yield figure used in the NERI working paper referred to by the Deputy.
The Financial Institutions Levy I announced as part of Budget 2014 is a revenue raising measure which provides for a contribution from the banking sector to Ireland's economic recovery. The levy is in place for the years 2014 to 2016 inclusive with an anticipated annual yield of €150 million. As the levy is a percentage of an institution's DIRT liability in 2011, liability to the levy relates to the size of an institution's Irish operation. The entire banking system has been underpinned by the strong Government support provided both here and abroad and I believe it is appropriate therefore that the banking sector should make a contribution to the State's economic recovery. Accordingly, I announced in my Budget 2016 statement that I propose to extend the levy out to 2021, subject to a review taking place of the methodology used to calculate the levy. This will bring in an additional €750 million over the period, which is a very significant additional contribution to the Exchequer.
In relation to discussions at EU level, the Government's position is that a Financial Transactions Tax would be best applied on a wide international basis to include the major financial centres to prevent the danger of activities gravitating to jurisdictions where taxes are not levied on financial transactions. Notwithstanding this, the Government is not prepared to stand in the way of EU Member States that wish to work together to implement a Financial Transactions Tax and in this regard adoption of a decision formally authorising enhanced cooperation took place during the Irish Presidency of the EU in January 2013.
The proposal for a Directive from the European Commission in the area of financial transaction tax was published in February 2013. Ireland had many concerns about the proposal as drafted, not least of which were the potential impacts on, and the trading of, Irish Sovereign debt in the secondary market and in total, the potential negative impact on the liquidity of the financial sector as a whole. Members of the Economic and Financial Sub-Committee on EU Sovereign Debt Markets have stated that the introduction of the FTT would have a significantly negative effect on Sovereign Debt Markets and may impair the good-functioning of secondary markets for sovereign debt resulting in reduced liquidity, reduced investor demand and therefore higher financing costs for States.
Our concerns are widely shared amongst the Member States, including some of the participating countries. These concerns have led to the issuing of a communique by the participating Member States, announcing that they have agreed to implement a financial transaction tax in a progressive manner, with the first step being a charge on shares and some derivatives. More recently on 8th December 2015 the ECOFIN Council discussed the current state of play with regard to the proposal of a number of Member States to introduce a financial transaction tax. In the context of this discussion, ten of the original eleven Member States (Estonia has indicated that it no longer supports the proposal) issued a statement setting out their agreement on some principles and parameters for an FTT, as well as the areas that were still open for discussion. The statement indicates that a decision on the open issues should be made by end of June 2016.
The statement of the ten Member States indicates that further work will take place regarding the applicable tax rates. The ten Members States also agreed on the need to further analyse the impact of the tax on the real economy and pension schemes. They also state that the financial viability of the tax for each country is required i.e., whether or not the costs of implementing the tax are adequately covered by its revenue.
There is still uncertainty therefore as to the form the FTT might take and more detail would be needed on the final shape of the tax before a definitive conclusion could be reached about its impact on Irish taxation revenue.
29. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform his plans to reverse the imposition of the levy on the pensions of members of An Garda Síochána; the cost in one year of implementing this change; and if he will make a statement on the matter. [8668/16]
View answerI refer to my answer to Parliamentary Question No. 13 on 27 April 2016.
30. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the status of a case (details supplied) where land is being eroded by the sea; and if he will make a statement on the matter. [8712/16]
View answerIt is a matter in the first instance, for each local authority to identify, investigate and address priority areas of their coastlines considered to be under significant threat from erosion. It is open to Kerry County Council to undertake coastal erosion remedial works using its own resources. If necessary, it may also put forward proposals to the relevant central Government Departments for funding of appropriate measures depending on the infrastructure or assets under threat. The Office of Public Works (OPW) operates the Minor Flood Mitigation Works and Coastal Protection Scheme, under which applications from local authorities are considered for measures costing not more than €500,000 in each instance. Funding for coastal erosion risk management studies may also be applied for under this scheme. Funding of up to 90% of the cost is available for projects which meet the eligibility criteria including a requirement that the proposed measures are cost beneficial.
Full details are available on the OPW's website at: http://www.opw.ie/en/floodriskmanagement/operations/minorfloodworkscoastalprotectionscheme/.
No application has been received to date by the OPW for the location referred to in this question. I believe the earlier works at this location referred to by the Deputy were carried out by Kerry County Council.
