Written Answers Nos. 81-95
81. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Justice and Equality the number of staff employed by the charity regulator per annum since its establishment; the operating costs per annum; and if she will make a statement on the matter. [20293/16]
View answerThe regulation of the charity sector is a priority for this Government. The Charities Regulatory Authority (also known as the Charities Regulator) was established as an independent agency on 16 October 2014 and is responsible for the registration and regulation of all the charities active in this country. The key areas of work of the Regulator include registration and award of charitable status, annual reporting, compliance and investigations, charity services and providing a public register and statistical information on the charity sector.
When the Charities Regulatory Authority was established in October 2014, there were ten staff working in this area. This has since been increased to 23 members of staff and the budget for 2016 provides for this to increase further to 36. I am determined to make sure that the Authority has the necessary staff and financial resources available to achieve its goals. The Charities Regulator was allocated a significant increase in its pay budget for 2016 to allow for the full complement of staff required to ensure that the full range of provisions contained in the Charities Act 2009 could be commenced as soon as possible. A budget of €2.665 million has been allocated to the Regulator for 2016, compared to a budget of €1.419 million for 2015, an increase of 88%. This increased funding is facilitating recruitment of additional staff in key areas including policy development, registration and reporting, compliance and investigations and communications. My Department, together with the Public Appointments Service, is working to put in place the full complement of staff and I expect these staff to be in place in the coming weeks and months.
82. Deputy Michael McGrath asked the Tánaiste and Minister for Justice and Equality the number of staff dedicated to managing Ireland's response to the decision of the United Kingdom to exit the European Union; the structure of this team; how it will work with teams in other Departments; who has overall responsibility; and if she will make a statement on the matter. [20306/16]
View answerThe result of the recent referendum in the United Kingdom marks the beginning of a new phase which will include a negotiated withdrawal from the EU by the UK that is expected to take place over two years once article 50 is invoked. As the Deputy will be aware, no decision has been taken yet at EU level as to how the negotiations will be structured. The modalities of these negotiations will affect the resources to be assigned to the process and this will be decided in due course.
Work has already been undertaken in my Department in order to manage the Department’s response to the decision of the United Kingdom to leave the European Union at strategic and operational levels. Early in 2016 an initial risk analysis of the UK's potential departure was carried out by my Department and a number of issues identified.
The implications of the decision of the United Kingdom to leave the European Union has been placed on the agenda of the Department’s Management Board as a standing item to be considered each week. The Department’s International Policy Division has been assigned responsibility for coordinating the Department’s work as it relates to the EU-UK matters. The Division is headed-up by an Assistant Secretary and comprises a team in Dublin and a team based in the Permanent Representation of Ireland to the EU in Brussels consisting of 11 Officers. In addition six senior officers from each of the key areas in the Department (who are in turn supported by relevant staff) have been selected to make up a cross Divisional working group to focus on the key negotiating issues. There are over 700 instruments relating to Title V measures on the EU legislative database. The working group has narrowed this down to approximately 200 measures that will require further examination and this work is now underway.
The work within the Department on this issue is coordinated with other Departments through the Department of the Taoiseach.
83. Deputy Robert Troy asked the Tánaiste and Minister for Justice and Equality to provide, per annum, all external consultant reports commissioned by her Department since March 2011, in tabular form; the costs per report; the company involved; the title of the report and the publication date. [20350/16]
View answerI wish to inform the Deputy that it has not been possible to provide the information required in the time available. The information will be forwarded to the Deputy as soon as it is to hand.
84. Deputy Robert Troy asked the Tánaiste and Minister for Justice and Equality the total photography costs per annum for her Department since coming to office inclusive of costs incurred from use of the ministerial allowance in tabular form; the list of occasions for which photographers were booked; the photographers used; the breakdown of costs associated with each occasion that a photographer was used; if there is a policy regarding the booking of photographers within her Department; and if she will make a statement on the matter. [20380/16]
View answerThe total photography costs per annum paid by my Department from the date of my appointment as Minister on the 8th May 2014 to the 30th June 2016 are as follows:
May to December 2014 - €553.50
January to December 2015 - €1,222.62
January to June 2016 - €833.35
I can inform the Deputy that photographic services are only used by my Department where necessary and consideration is always given to the costs involved when sourcing such services. A tender framework is in place and used to procure these services when required. The list of occasions when photographers were engaged and the associated costs are as follows:
|
Occasion |
Photographer |
Cost |
|
Appointment of Chief Executive Designate to Charities Regulatory Authority |
Maxwell Photography Ltd |
€123.00 |
|
First Board Meeting of the Charities Regulatory Authority |
Maxwell Photography Ltd |
€275.52 |
|
Promote Safety on Fireworks Night |
Maxwell Photography Ltd |
€154.98 |
|
Sub-total May to December 2014 |
€553.50 |
|
|
International Women's Day |
Maxwell Photography Ltd |
€120.54 |
|
Website and other Department publications |
Maxwell Photography Ltd |
€516.60 |
|
Website and other Department publications |
Maxwell Photography Ltd |
€585.48 |
|
Sub-total January to December 2015 |
€1,222.62 |
|
|
Annual Justice Conference 15th January |
Maxwell Photography Ltd |
€231.98 |
|
Launch of Prison Culture Report |
Maxwell Photography Ltd |
€464.94 |
|
Promote Women in Justice |
Maxwell Photography Ltd |
€136.43 |
|
Sub-total January to June 2016 |
€833.35 |
85. Deputy Robert Troy asked the Tánaiste and Minister for Justice and Equality to provide, broken down per annum, the use of external public relations firms employed by her Department since coming into office, in tabular form; the external public relations firm used; to outline the internal departmental policy with regard to employing external groups; and if she will make a statement on the matter. [20395/16]
View answerMy Department has not incurred any costs in relation to the provision of public relations services from the date of my appointment on the 8th May 2014 to the 30th June 2016.
It is my Department's policy to use in house resources as much as possible and to restrict the use of external groups to a minimum.
86. Deputy John Halligan asked the Tánaiste and Minister for Justice and Equality her plans to legislate where one party to a joint mortgage is not engaging with the bank and making it impossible for the other party to renegotiate manageable terms with the provider, where one party is entitled to be treated as a single borrower from the other party under the 2013 code of protection on mortgage arrears to allow for a long-term restructure; if the restructuring of the mortgage contract without the consent of one party is currently not legislated for and if this needs to be addressed urgently, in particular in a certain case (details supplied); and if she will make a statement on the matter. [20428/16]
View answerI am aware of the complex issue raised by the Deputy's question.
As the Deputy will be aware, matters related to mortgage lending fall within the policy responsibility of my colleague the Minister for Finance. I understand that the Minister for Finance has received an identical question from the Deputy on this issue, to which he will be responding today.
87. Deputy Eoin Ó Broin asked the Minister for Finance for details of the treatment of the debt portion of the Irish Water capital programme, for each of the years 2015 to 2021, in terms of how it impacts on the State's debt to GDP ratio, and the calculation of the expenditure benchmark and fiscal space available to the Government in each of those years. [20246/16]
View answerI presume that the "debt portion of the Irish Water capital programme" mentioned by the Deputy in his question refers to the direct borrowing undertaken by Irish Water from commercial sources. As Irish Water is classified in General Government, this commercial borrowing is included in the General Government Debt (GGD). By end 2015, Irish Water's commercial borrowings increased General Government Debt by about 0.4% of GDP. Under Irish Water's business plan, this is forecast to increase to about 0.6% of GDP by 2021.
The source of funding for Irish Water's capital programme has no impact on the calculation of the expenditure benchmark and fiscal space available to the Government in the period 2017-2021.
Furthermore the calculation of the net fiscal space remaining in table A2, Annex 1 of the Summer Economic Statement 2016 includes the full impact of Irish Water's planned expenditure, including its capital programme. The principal impact this expenditure has on the calculation is its inclusion each year in the general government expenditure base used to estimate fiscal space in the coming year.
88. Deputy John Halligan asked the Minister for Finance his plans to legislate where one party to a joint mortgage is not engaging with the bank and making it impossible for the other party to renegotiate manageable terms with the provider, where one party is entitled to be treated as a single borrower from the other party under the 2013 code of protection on mortgage arrears to allow for a long-term restructure; if the restructuring of the mortgage contract without the consent of one party is currently not legislated for and if this needs to be addressed urgently, in particular in a certain case (details supplied); and if he will make a statement on the matter. [20323/16]
View answerThe Deputy is correct that the Code of Conduct on Mortgage Arrears (CCMA) provides that in the case of joint borrowers who notify the lender in writing that they have separated or divorced, the lender should treat each borrower as a single borrower under this Code (except to the extent that an action requires, as a matter of law, the agreement of both borrowers).
It is also the case, however, that in general both parties to a joint mortgage are jointly and severally liable for the debt. There would be real difficulties with permitting a mortgage to be restructured to the potential detriment of a party to it, albeit a party who may not be engaging, without their consent. Such a scenario could potentially give rise to injustice for the person who was not party to the agreement between the bank and the other party.
I am informed by the Central Bank that while the CCMA requires that joint borrowers who are separated or divorced should be treated as single borrowers, the Central Bank is limited in what it can prescribe in this area, particularly where an action requires, as a matter of law, the agreement of both borrowers. The CCMA requires that all cases must be handled sympathetically and positively by the lender, with the objective of at all times assisting the borrower to meet his/her mortgage obligations. It is, therefore, desirable that the lender make every effort to engage with both borrowers with a view to arriving at a sustainable restructure outcome that is acceptable to both parties.
89. Deputy Michael McGrath asked the Minister for Finance his estimate of the revised net fiscal space that would arise in each of the years 2017 to 2021 in the event of real gross domestic product growth for each of the years 2016 to 2021 being 1%, 2% and 3% less than currently forecast; and if he will make a statement on the matter. [20330/16]
View answerEstimates of fiscal space based on the expenditure benchmark are unaffected by changes in actual GDP. Instead, the relevant input is the estimate of the potential growth rate of the economy, as estimated by the European Commission each Spring.
The rationale for this is simple: budgetary policy should not be pro-cyclical. In other words, fiscal space should not increase when there is a cyclical improvement in the economy and, similarly, fiscal space should not reduce when there is a cyclical downturn.
Fiscal space would be affected in the event that the potential (or trend) growth rate of the economy was to slow, i.e. there is a permanent slowdown in the pace at which the economy can grow without generating inflationary pressures.
A reduction in the trend growth rate of 1 per cent each year over the next five years relative to the baseline forecast set out in the Stability Programme would reduce the expenditure benchmark reference rate (i.e. the average potential growth rate calculated over a ten-year period) by an average of 0.6 pp per annum.
On this basis, if the potential growth rate for each of the years 2016 to 2021 is 1, 2 and 3 per cent less than currently forecast, the impact on fiscal space is outlined in the following table.
|
Net fiscal space remaining €bns |
2017* |
2018 |
2019 |
2020 |
2021 |
|
Baseline SPU |
1.0 |
1.2 |
3.0 |
3.1 |
3.0 |
|
1% annual decrease in potential growth rate |
1.0 |
0.8 |
2.6 |
2.6 |
2.5 |
|
2% annual decrease in potential growth rate |
1.0 |
0.5 |
2.1 |
2.2 |
2.0 |
|
3% annual decrease in potential growth rate |
1.0 |
0.2 |
1.7 |
1.7 |
1.6 |
* No change to 2017 potential growth rate as it is frozen on the basis of Commission Spring 2016 estimates
These estimates should be treated with caution and are subject to revision, given that a number of simplifying assumptions must be made in order to provide these estimates. For instance, the assumption is made that the MTO is still achieved in 2018. Furthermore, these estimates are based on total expenditure remaining unchanged. It is, of course, difficult to envisage that a 2-3 per cent lasting shock to the potential growth rate would not have further impacts on other inputs into the Expenditure Benchmark calculation.
90. Deputy Pearse Doherty asked the Minister for Finance his views that insurance premium increases in areas apart from motor insurance may be linked to core underwriting losses and an environment of very low investment returns; and if he will make a statement on the matter. [20402/16]
View answerDiffering reasons have been put forward by various interested parties to explain Ireland's current increasing insurance costs. The Central Statistics Office has reported that the cost of insurance premiums increased significantly in the past twelve months with a 35.5% increase in motor car insurance and dwelling and health insurance up by 9.9% and 6.5% respectively.
Reasons often presented include the increased level of insurance claims and the increasing value of compensation awards. Others highlight that the highly competitive nature of the domestic market for non-life insurance in recent years has begun to impact on firms' underwriting profitability with underwriting losses reported in 2014 for a number of high-impact firms.
The Central Bank of Ireland has a statutory responsibility to ensure firms assess risks appropriately and offer insurance at a price that adequately takes into account the conditions prevailing in the market such as increasing claims costs. This ensures firms have the ability to pay all policyholders' claims without recourse to public or consumer funds. The Central Bank does not have a statutory role in relation to setting premium prices.
In its Macro-Financial Review for the first half of 2016 which was published on 14th June and is available on the Central Bank of Ireland's website www.centralbank.ie, the Central Bank highlights a number of issues facing the non-life insurance sector. These include the impact of the low interest rate environment that has resulted in a fall in investment income which historically was used to offset underwriting losses. The Central Bank believes that investment income will continue to decline as proceeds from maturing assets are reinvested in lower yielding assets. The Report concludes that the domestic non-life insurance sector continues to face a difficult operating environment with all of the high-impact firms reporting underwriting losses in 2015 primarily due to current challenges in the Irish motor market. It also notes that the risk-sensitive regulatory framework, Solvency II, which came into effect on 1 January 2016, should strengthen insurers' resilience.
I am informed by the Central Bank that the decline in returns on investments through low interest rates has been a key theme in its engagement with the insurance industry for a number of years and forms a key part of its supervisory engagement with individual firms. The Opinion on Supervisory Response to a Prolonged Low Interest Rate Environment published by the European Insurance and Occupational Pensions Authority (EIOPA) in February 2013 required all National Competent Authorities to intensify the monitoring and supervision of insurance and reinsurance undertakings with exposure to the risks posed by a low interest rate environment.
To examine the issues affecting the cost of insurance in more detail and to assess what the options are for the Government, I have established a task force in my Department to undertake a Review of Policy in the Insurance Sector. This Task Force will be chaired by Minister of State Eoghan Murphy. The work of the task force includes an examination of the issues debated during the Dáil Private Member's Motion of the 8th and 9th of June 2016. The work is being undertaken in consultation with the Central Bank of Ireland, other Government Departments, Agencies and interested bodies. The aim of this work is to identify the factors contributing to the increasing cost of insurance, and to recommend measures to improve the functioning and regulation of the insurance sector in Ireland, identifying the issues that can be addressed on a more immediate basis and those that need more long-term policy implementation.
This work will be completed over the coming months.
91. Deputy Clare Daly asked the Minister for Finance his plans to bring the group thresholds for capital acquisitions tax closer into line with each other, such that childless persons are not discriminated against relative to peers with children in regard to bequeathing their estates. [20405/16]
View answerCapital Acquisitions Tax (CAT) is the overall title for gift and inheritance tax.
For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the maximum life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise.
There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer.
- Group A: tax free threshold €280,000 applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.
- Group B: tax free threshold €30,150 applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.
- Group C: tax free threshold €15,075 applies in all other cases.
Transfers and inheritance between spouses are not subject to CAT.
Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold.
As with all tax areas, capital acquisitions tax (CAT), including issues such as rates of tax, tax-free thresholds, reliefs and exemptions, is kept under review. As part of Budget 2016 I raised the Group A tax-free threshold applying to gifts and inheritance from parents to their children from €225,000 to €280,000. This represented an increase of about 25%. I did this in recognition of the improving state of the public finances and of the concerns expressed to me by people making and receiving gifts and inheritances, particularly in a context of rising property prices.
I indicated at the time that I saw the change to the Group A tax-free threshold in the last Budget as the start of a process. The extent to which increases in the various tax-free thresholds for CAT purposes, can be accommodated in the future will depend, among other things, on the continuing economic recovery and the competing choices for limited resources. The Deputy will be aware of the commitment in the Programme for a Partnership Government to work with the Oireachtas to raise the Group A CAT tax-free threshold (including all gifts and inheritances from parents to their children) to €500,000.
92. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence regarding mortgages (details supplied); and if he will make a statement on the matter. [20162/16]
View answerThe matter of whether or not a borrower is permitted to rent out their principal private residence without the lender's permission is a matter of contract between the lender and the borrower, which may be provided for in the terms and conditions of the loan agreement. I, as Minister for Finance, have no role in the commercial decisions of individual banks. I have also been informed that the Central Bank has no remit in the commercial decisions of lenders in this regard.
Nonetheless, where a consumer is unhappy with the service they have received from a firm which is regulated by the Central Bank, they are entitled to make a complaint directly to the firm concerned.
Subject to the exclusions set out in Central Bank's Consumer Protection Code 2012 (the Code), the Code applies to the regulated activities of regulated entities operating in the State.
Chapter 10 of the Code sets out the procedures and timelines for regulated firms dealing with customer complaints. If the consumer is not satisfied with the outcome of their complaint, they can refer the matter to the Financial Services Ombudsman. The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers which are regulated by the Central Bank.
I would also add that the protections of the Central Bank's Code of Conduct on Mortgage Arrears may apply if the borrower is in arrears or pre-arrears and the property is the only residential property in the State owned by the borrower.
Finally, I would encourage borrowers in difficulties to avail of independent advice. Organisations such as the Money Advice and Budgeting Service (MABS) provide a national, free, confidential and independent service. MABS have offices throughout the State and advisors available to help individuals address their particular circumstances.
93. Deputy Pearse Doherty asked the Minister for Finance the fees or any other form of remuneration paid to a company (details supplied) by his Department in each of the past ten years; and if he will make a statement on the matter. [20243/16]
View answerNo fee, or any other form of remuneration, was paid by my Department to the company referred to in each of the past ten years.
The company seconded four individuals to my Department on a pro bono basis for parts of 2010, 2011, 2012, 2013, 2015 and 2016.
94. Deputy Micheál Martin asked the Minister for Finance if he or his Department has completed an assessment on the implications of the United Kingdom's reduction in corporation tax rate to 15%; his views on same; and if he will make a statement on the matter. [20290/16]
View answerI am aware of media comments from the UK Chancellor of the Exchequer earlier this week regarding a move by the UK to a corporation tax rate of less than 15%. This announcement is not surprising given that the UK had previously announced a cut to 17% by 2020. There appears to be no timeframe set for this further reduction and we will have to wait and see the details when they emerge, for example whether the rate cut is to be paid for by compensating base broadening measures. My Department will of course examine any such proposals when the details are available.
At 12.5%, Ireland has one of the most competitive and stable headline corporate tax rates in the OECD. I believe that Ireland's long-term commitment to the 12.5% rate ensures that we remain highly competitive and supports Ireland's ability to attract and retain investment from around the world. Our competitive rate of corporation tax has been an important part of our industrial policy since the 1950s, and has attracted real and substantive operations to Ireland since then.
In a recent research paper, commissioned by the Department of Finance as part of a Joint Research Programme with the ESRI, entitled "Corporate Taxation and Foreign Direct Investment in EU Countries: Policy Implications for Ireland", the Economic and Social Research Institute examined the extent to which Ireland and the UK are perceived as similar alternatives with respect to factors that determine the location choice of foreign affiliates.
The Report found that:
- Over and above the effect of corporate tax rates, a number of other location characteristics are found to significantly increase countries' chances of being chosen as a location for FDI, including market size, access to the European Single Market, low production costs, high R&D capacity, as well as cultural and geographical proximity relative to investors.
- EU and non-EU investors value location characteristics differently. Investors from outside the EU are mainly seeking access to the European Single Market and are more likely to choose locations with low corporate tax rates. Intra-EU investments are more likely to be located in countries where the corporate tax is high but where they benefit from other local advantages such as low production costs.
The research concludes that in addition to maintaining a competitive corporate tax rate, Ireland's attractiveness to FDI would benefit from policies aimed at maintaining cost competitiveness and enabling further R&D investment.
95. Deputy Michael McGrath asked the Minister for Finance the number of staff dedicated to managing Ireland's response to the decision of the United Kingdom to exit the European Union; the structure of this team; how it will work with teams in other Departments; who has overall responsibility; and if he will make a statement on the matter. [20302/16]
View answerMy Department has been preparing for the outcome of the UK referendum on EU membership for a considerable period of time and this has included the establishment of inter-divisional structures and committees. Senior officials from my Department also participate in the Inter-departmental Group on EU-UK issues which is chaired by the Department of the Taoiseach. Following the outcome of the referendum, consideration of the staffing and structures is being reviewed to ensure that the Department is fully equipped to deal with the policy issues arising.
