Written Answers Nos. 61-70
61. Deputy Jackie Cahill asked the Minister for Finance if sections 74, 81D and Nos. 1 to 6, inclusive, of the Finance Act 2014 dealing with relief for certain leases of farmland have come into force yet; if not, when they will; and if he will make a statement on the matter. [12259/16]
View answerOne of the recommendations of the Agri-taxation Review was that stamp duty relief be given in relation to certain leases of farmland to encourage more productive use of land.
As a result of Section 74 of the Finance Act this recommendation is now reflected in Section 81D of the Stamp Duties Consolidation Act 1999. The section provides, subject to certain conditions, for relief from stamp duty to encourage the long-term leasing of land to active farmers.
Changes to the stamp duty provisions pertaining to farmland leasing provided for in the Finance Act 2014 are however subject to a commencement order pending State Aid approval by the European Commission.
Responsibility for discussions with the Commission in this regard lie with the Department of Agriculture, Food and the Marine, which is currently engaged in determining whether there is a basis for its introduction under State Aid rules.
62. Deputy Michael McGrath asked the Minister for Finance the number of microbreweries availing of tax relief on production up to 30,000 hectolitres; the amount of excise duty foregone; and the number of jobs supported in the microbrewing industry, in each of the years 2011 to 2015; and if he will make a statement on the matter. [12267/16]
View answer63. Deputy Michael McGrath asked the Minister for Finance the rules governing the provision of tax relief for microbrewing firms; how they compare to competitor countries in the European Union; if he has reviewed these rules; and if he will make a statement on the matter. [12268/16]
View answer64. Deputy Michael McGrath asked the Minister for Finance why beer produced by microbreweries for export, and therefore not subject to domestic excise duty, is reckonable for the calculation of a production limit of 30,000 hectolitres for which tax relief is available; and if he will make a statement on the matter. [12269/16]
View answerI propose to take Questions Nos. 62 to 64, inclusive, together.
Article 4 of Council Directive 92/83/EEC provides that Member States may apply tax relief of up to 50% on the standard excise rate on beer exceeding 2.8% alcohol by volume that is produced in the EU by qualifying microbreweries. Eligibility for the relief is determined, among other criteria, by the brewery's total production in the calendar year prior to the year of the claim period, including production for export. The production qualification threshold for microbreweries, and the maximum amount that may be claimed by them, is set by each Member State, but is subject to an upper annual production and claim threshold of 200,000 hectolitres under the Directive.
In Ireland, the production threshold is 30,000 hectolitres in the prior calendar year. The maximum quantity of beer on which relief is allowed for any qualifying brewery in any calendar year is 30,000 hectolitres. Following review of the scheme by my Department in 2014, these thresholds were increased from 20,000 hectolitres in Budget 2015. In Budget 2016, I introduced a further measure to allow the relief to be claimed upfront from January 2016. This measure is intended to reduce the cash-flow burden on microbrewers who, until this point, could claim by repayment only.
The production threshold limit of 30,000 hectolitres in the prior calendar year is set at that level to ensure that the relief can only be claimed by small undertakings. This gives these small indigenous businesses encouragement and assistance to compete with larger breweries who enjoy the benefits offered by scale.
The production thresholds for qualification as a microbrewery vary across Member States. Beer brewed in qualifying microbreweries in other member states and brought into this State for consumption is eligible for the same relief as that which is produced in the State. Therefore, increases in the production threshold for microbreweries in this State will increase the volume of qualifying beer imported from other member states that is eligible for the relief also.
The Revenue Commissioners have published an information leaflet on the microbrewery relief on their website that can be accessed at the following link: http://www.revenue.ie/en/tax/excise/leaflets/pn1888.html.
The Commissioners inform me that, in the period from 2011 to 2015, the number of claimants for microbrewery relief increased from 17 to 73. The total amount of relief claimed under the scheme in that period amounts to €9 million. This includes relief paid for beer produced in qualifying microbreweries in other Member States and brought into this State for consumption. The following table sets out the detail of the number of claimants and the total amount of relief paid in the period from 2011 to 2015.
Table: Relief Paid on Beer Produced in a Qualifying Microbrewery 201-2015
|
Year |
Total Repayments Claimed (€) |
Number of claimants |
|
2011 |
420,304 |
17 |
|
2012 |
840,651 |
20 |
|
2013 |
1,452,291 |
25 |
|
2014 |
2,334,409 |
54 |
|
2015 |
3,992,101 |
73 |
|
Total |
9,039,756 |
|
65. Deputy Michael McGrath asked the Minister for Finance the number of banks covered by the Central Bank of Ireland's investigation of tracker mortgages; the number of individual cases; when the investigation will conclude; and if he will make a statement on the matter. [12276/16]
View answerI have been informed by the Central Bank that its examination of tracker mortgage related issues covers all lenders which offered tracker mortgages to customers, including both for the family home and investment properties from when the lenders started to offer such mortgages, up to the end of 2015.
The Central Bank's purpose in this examination is to identify any cases where:
- customers' contractual rights under the terms of their mortgage agreements were not fully honoured; and/or
- lenders did not fully comply with the various requirements and standards regarding disclosure and transparency for the customer.
With regard to the number of individual cases, the examination requires lenders to carry out a review in order to identify customers who have been negatively impacted and, where there has been any detriment, to provide redress in line with redress principles determined by the Central Bank. This process is ongoing.
In relation to the time-frame for the examination, the Central Bank has stressed that it is important that each lender carries out a comprehensive and robust review of their mortgage books, which achieves a fair outcome for all customers. While the Central Bank wants to have the examination completed as soon as possible, it also recognises that this is potentially a significant undertaking for lenders and it is important that they are given the necessary time to complete it. The Central Bank expects significant progress to be made by all lenders before the end of 2016 and have assured me that the examination will remain a priority for as long as it takes to address all issues and deliver the right outcomes for customers.
I would also highlight to the Deputy that the Central Bank will be providing public updates through their website throughout the examination and I have been informed that the next update is due to be issued at the end of July.
66. Deputy Michael McGrath asked the Minister for Finance the number of occasions on which residential properties over which the National Asset Management Agency has security have had rent increases in the past 12 months either by a receiver or by the agency directly; the average increase in such rents; and if he will make a statement on the matter. [12277/16]
View answerNAMA has acquired and manages loans. It does not manage individual properties. These remain under the control of its debtors and receivers who are required to optimise the income generated by the assets under their control. This ensures that they are in a position to maximise their debt repayments to NAMA and ultimately eliminate any contingent liability to the taxpayer.
The Deputy will be aware that, to date, NAMA has redeemed €24.6 billion (81%) of the €30.2 billion in senior debt that it issued to acquire loans from the participating institutions. A significant contributor to this achievement was the drive by NAMA to ensure that its debtors and receivers maximised the income from assets under their control.
I am advised that NAMA does not maintain a central database of changes to the rents charged by its debtors and receivers on the 6,000 residential properties that are currently under their control that have 99% occupancy. As the Deputy is aware however, in accordance with NAMA's statutory requirements, all loan income and receivables are recorded in NAMA's audited financial accounts in line with IFRS accounting standards.
As with any other landlords, NAMA debtors and receivers conduct rent reviews in accordance with requirements set down in law and any adjustments made to rents on properties are in line with overall movements in market rents.
67. Deputy Michael McGrath asked the Minister for Finance the status of plans to provide basic bank accounts to low-income households; and if he will make a statement on the matter. [12279/16]
View answerMy Department is currently transposing the EU Payment Accounts Directive which requires that all consumers legally resident in the EU must have access to a payment account with basic features, free of charge or for a reasonable fee, regardless of their financial circumstances.
The Directive also requires Member States to raise awareness among the public about the availability of payment accounts with basic features and to ensure that communication measures reach out to unbanked, vulnerable and mobile consumers. The Directive must be transposed by 18 September 2016.
68. Deputy Michael McGrath asked the Minister for Finance when the central credit register will be fully operational; the steps he has taken to implement it; the costs incurred; the reason for the delay; and if he will make a statement on the matter. [12280/16]
View answerI am informed by the Central Bank that it continues to make progress on a CCR implementation project since the enactment of the Credit Reporting Act in December 2013. The operational implementation of the CCR is a complex process and the final timeline will be influenced by the scale of the technical and operational changes to be implemented by over 500 lenders.
In the last 12 months the Central Bank has:
- Completed a design stage to specify the detailed data requirements and technical CCR solution;
- Published feedback on 11 February 2016 to a Public Consultation Paper which sought views on keys issues relating to the CCR;
- Carried out a Privacy Impact Assessment, which has been shared with the Data Protection Commissioner, to ensure the appropriate controls are in place to safeguard personal data across the end to end processes;
- Prepared draft CCR regulations (which were approved by the Commission of the Central Bank of Ireland on 25 February 2016) as a basis for formal consultation with the Data Protection Commissioner and
- Undertaken consultation with the DPC, which is on-going. The Central Bank has indicated that, pending the outcome of this consultation, the exact timing of the making of final Regulations is uncertain at this point.
The take on of data will be implemented on a phased basis, with Phase 1 focusing on lending to consumers and Phase 2 focusing on lending to businesses.
It is expected that data submissions by lenders will commence 6 months after the finalisation of Regulations but the final deadline will be influenced by the scale of the technical and operational changes to be implemented by lenders.
Enquiries by lenders against the CCR data are expected to commence in 2017 once data quality has been assured.
By end-2017 the CCR data collection may be extended to business loans, moneylenders and local authorities, again subject to finalisation of the necessary regulations.
Since the commencement of the project in 2013, costs incurred to end April 2016 totalled €1,752,000, which will be recovered from CCR customers in due course.
69. Deputy Michael McGrath asked the Minister for Finance the vacancy rate in the Central Bank's enforcement division; the number of these relating to the regulation of insurance firms; and if he will make a statement on the matter. [12281/16]
View answerThe Central Bank has informed me that the standardised vacancy rate in the Enforcement Division of the Central Bank of Ireland as at the end of April 2016 is 25%.
The Division is currently in the midst of a recruitment campaign aiming to fill a number of these vacancies at varying levels of experience.
Staff posts within the Division are not allocated exclusively to one particular industry sector, such as insurance; accordingly, it would not be feasible to identify the number of vacancies that relate exclusively to the insurance sector.
70. Deputy Michael McGrath asked the Minister for Finance the number of staff employed in the Central Bank's enforcement division; the number of these relating to the regulation of insurance firms; and if he will make a statement on the matter. [12282/16]
View answerThe Central Bank has informed me that at the end of April 2016, the Enforcement Division had 53.8 active staff, out of a complement of 71.5. This equates to 75% of their target complement.
The Enforcement Division is multi-disciplinary and uses a wide range of powers to investigate cases across the financial services sector. The allocation of staff within the Division to cases will depend on the requirements for each case. Staff within the Division are not allocated exclusively to one particular industry sector, such as insurance.
