Tuesday, 22 Nov 2016

Written Answers Nos. 164-185

European Fund for Strategic Investments

Questions (164)

Dara Calleary

Question:

164. Deputy Dara Calleary asked the Minister for Finance the total financial contribution of the State to the European Fund for Strategic Investments; and if he will make a statement on the matter. [36082/16]

Written answers

Minister for Finance

I take it that the Deputy is referring to the provision under Article 4 of the current Regulation for the European Fund for Strategic Investments (EFSI) dealing with the Terms of the interinstitutional EFSI Agreement between the European Commission and the European Investment Bank implementing EFSI. 

While supporting the right of Member States to make contributions to EFSI in the form of guarantees or cash, Ireland has not made any such contributions itself. It is also important to recall that the announcements made by a number of Member States including Germany, Italy, France and Spain in the lead up to the original agreement on EFSI were to do with co-financing through their National Promotional Banks (NPBs).  Making such contributions to the overall EFSI fund is not ruled out either directly or through a co-funding programme through our own NPB, the Strategic Banking Corporation of Ireland (SBCI).  However, in the context of very constrained public finances and in the near aftermath of exiting the EU/IMF programme, such contributions would require strong justification in terms of supporting projects that would benefit Ireland directly.

EFSI provides an important additional funding mechanism to support investment in the pursuit of employment and growth. It must be considered alongside the other suite of investment mechanisms including the European Investment Bank's normal lending activities.  Thankfully in the case of the public sector, the State's capital investment programme is sufficiently funded via the state's borrowings through the NTMA, while other mechanisms such as PPPs and off-balance sheet vehicles are also additional potential options for funding investment.

Since inception, Ireland has seen the main potential beneficiaries of EFSI as being in the private sector including entities such as PPP companies and I am pleased that the primary health care centres PPP has successfully drawn down EFSI funds.  It should be remembered that each EFSI loan entered into by the State would pre-commit funding for the repayment of such loans, and would have to be considered in the context of the expenditure benchmark under the EU's fiscal rules.  This has been a significant limiting factor on the potential for EFSI funded public sector projects to date.

Insurance Costs

Questions (165)

Billy Kelleher

Question:

165. Deputy Billy Kelleher asked the Minister for Finance the actions he is taking to immediately curb the escalating car insurance costs for motorists; and if he will make a statement on the matter. [36112/16]

Written answers

Minister for Finance

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.  Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.  This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. 

However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors which contribute to higher costs. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair.  The initial focus of the Working Group is on the factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses.  A broad range of issues affecting the cost and availability of motor insurance are being examined by the Working Group.

The Cost of Insurance Working Group has met ten times to date and will continue to meet until the end of the year. The work is being progressed through four subgroups.  These subgroups have been meeting on a weekly basis since their establishment on 1 September 2016.

The Working Group and the four subgroups have engaged in a consultation process and has met with and heard from a variety of relevant stakeholders including: Insurance Ireland, individual insurance companies, the Irish Brokers Association, AA Ireland, the Consumers Association of Ireland, the Law Society, the Bar Council, Irish Road Haulage Association, the Car Rental Council, the National Transport Authority and Tiomanai Tacsai na hEireann. I have also invited submissions to the Working Group from all interested parties to [e-mail].

In addition, the Working Group has engaged with relevant insurance companies as part of this consultation process. The views and submissions of insurance companies, and all those from interested parties, are being considered as part of the ongoing work of the Working Group.

The Working Group provided me with an initial set of emerging recommendations at the end of October 2016. Since then, the Working Group has been working to finalise their Report and to develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.  The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation.

From the emerging recommendations presented and the consultations carried out since, it is likely that the report will address nine key areas, with in the region of 40 recommendations in total.

Insurance Costs

Questions (166)

Frank O'Rourke

Question:

166. Deputy Frank O'Rourke asked the Minister for Finance if he will consider bundling the national private car insurance requirement for low income persons and families into one single tender (details supplied); and if he will make a statement on the matter. [35710/16]

Written answers

Minister for Finance

I am not considering a proposal such as that suggested by the Deputy. As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. 

This inability to intervene in such matters is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. 

In addition, it should be noted that bundling together any cohort of persons for the purposes of procuring insurance would not allow for an individual assessment of the risk of insuring each person, which is the manner in which the insurance sector operates. It is unlikely an insurance company would be willing to accept risk on that basis without having due regard to the individual factors relative to each person.

However, I do accept that it is possible for the State to play a role in helping to stabilise the market. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair.  The initial focus of the Working Group is on the factors that are contributing to the cost and availability of motor insurance and identifying what short-term, medium-term and long-term measures can be introduced to help consumers and businesses. 

The Working Group provided me with an initial set of emerging recommendations at the end of October 2016. Since then, it has been working to finalise its Report and to develop an action plan to enable the relevant Government Departments and Offices to commence the implementation of agreed priority actions.  The report and action plan will detail any legislative or regulatory changes that may be required and will include a detailed timeline for implementation.

Credit Register Establishment

Questions (167)

Pearse Doherty

Question:

167. Deputy Pearse Doherty asked the Minister for Finance when the Central Credit Register will be operational; the reason for the delay in its creation; and if he will make a statement on the matter. [35758/16]

Written answers

Minister for Finance

Since the enactment of the Credit Reporting Act, the Central Bank has taken a number of steps to deliver the Central Credit Register including the publication last September of regulations setting out certain detailed measures which will govern the content and operation of the Credit Register (information on this is available on the Central Bank's website at https://www.centralbank.ie/consumer/Pages/ccr.aspx).

As previously indicated, the Credit Register is being implemented on a phased basis with phase 1 focusing on lending to consumers and phase 2 focusing on lending to businesses.  The Central Bank has advised that data submission by lenders for phase 1 will commence after 30 June 2017.  During the intervening period, technical and operational changes will be implemented by lenders and data quality assurance testing will be carried out.  Approximately 500 lenders will be registered with the Central Credit Register during this time in order to commence data submission from 30 June 2017.  A period of time between 30 June 2017 and 31 December 2017 will then be provided to ensure that the data submitted to the register is of sufficient quality to allow the Credit Register match personal and credit information and to be able, subject to data quality assurance, to produce credit reports after 31 December 2017.  The submission of data under phase 2 is currently projected to commence in the second half of 2018.  The primary focus of Central Bank activity on the Credit Register at this point is to engage with lenders to ensure they can submit data within the required timelines.

Tax Collection

Questions (168, 169, 171)

Catherine Murphy

Question:

168. Deputy Catherine Murphy asked the Minister for Finance the revenue forgone as a result of consumers choosing to purchase goods online with UK retailers in 2015 and to date in 2016; and if he will make a statement on the matter. [35775/16]

Catherine Murphy

Question:

169. Deputy Catherine Murphy asked the Minister for Finance the revenue foregone as a result of consumers choosing to purchase goods online with American based retailers in 2015 and to date in 2016; and if he will make a statement on the matter. [35822/16]

Catherine Murphy

Question:

171. Deputy Catherine Murphy asked the Minister for Finance the amount of VAT and customs and excise collected by the Revenue Commissioners from consumers buying goods online from the United States of America in 2015 and to date in 2016, in tabular form; and if he will make a statement on the matter. [35836/16]

Written answers

Minister for Finance

I propose to take Questions Nos. 168, 169 and 171 together.

Goods purchased online from American based retailers are liable for both Customs Duties and VAT. The rate of VAT charged is at the same rate as applies to the sale of similar goods within Ireland. Customs duty is normally charged as a percentage of the value, with the percentage varying depending on the type of goods. There are provisions for some goods of a negligible value where Customs Duty and/or VAT may not be payable.

Where goods are ordered online from a retailer in the UK (or any other EU member state), and the total supplies provided by that retailer in a calendar year exceed €35,000, the retailer must register and account for VAT in Ireland at the appropriate Irish rates. If the threshold is not exceeded, the supplier may, nevertheless, opt to register and account for Irish VAT on their sales. Where a UK retailer does not exceed the threshold or does not opt to register for VAT in Ireland, VAT is liable and payable to the UK.

I am advised by Revenue that information on payments of VAT or Customs Duty is not compiled in a manner that allows the amount of tax or duty paid on goods from the UK or USA to be separately identified from other payments.

Excise Duties Collection

Questions (170)

Jackie Cahill

Question:

170. Deputy Jackie Cahill asked the Minister for Finance the excise duty collected on a pint of beer served over the counter at a licensed premises; the excise duty collected on a 500 millilitre can of beer purchased in an off licence premises; and if he will make a statement on the matter. [35828/16]

Written answers

Minister for Finance

I am informed by the Revenue that the Excise Duty on a pint of beer served over the counter at a licensed premises is €0.54 and the Excise Duty on a 500 ml can of Beer purchased in an off licence is €0.47.

Please note that the Excise Duty content for a range of commodities is available on the Revenue website at the following link: http://www.revenue.ie/en/about/statistics/incidence-taxation.pdf.

Question No. 171 answered with Question No. 168.

Credit Union Services

Questions (172)

Pearse Doherty

Question:

172. Deputy Pearse Doherty asked the Minister for Finance the number and identity of credit unions approved for debit card services and member personal current account service; the dates on which they were approved; and if he will make a statement on the matter. [35855/16]

Written answers

Minister for Finance

My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.

The Registrar of Credit Unions at the Central Bank of Ireland is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.

Six credit unions were recently approved by the Central Bank for the Member Personal Current Account Service (MPCAS), which provides for credit unions to offer debit cards, overdrafts and a full range of payment services within an appropriate risk framework.

However, I have been informed by the Central Bank that it is not possible to publically identify the credit unions approved for the service for confidentiality reasons and due to the bilateral nature of the application. The Central Bank has further informed me that similarly they do not identify any entity that has applied for either a regulatory authorisation or for an additional service. The Central Bank understands that the approved credit unions intend arranging their own communications in this regard.

The Government recognises the important role of credit unions as a volunteer co-operative movement in this country. The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to continue to support a strengthened and growing credit union movement.

Consumer Protection

Questions (173)

Catherine Murphy

Question:

173. Deputy Catherine Murphy asked the Minister for Finance the steps the Revenue Commissioners are taking to ensure that consumers are not being disadvantaged by a marked differential in consumer products priced in sterling and euro (details supplied); and if he will make a statement on the matter. [35856/16]

Written answers

Minister for Finance

The issue raised by the Deputy is not a matter for the Revenue Commissioners or my Department. The Competition and Consumer Protection Commission is the statutory body responsible for enforcing consumer protection and competition law in Ireland.

Credit Unions

Questions (174)

Clare Daly

Question:

174. Deputy Clare Daly asked the Minister for Finance if the liquidators assigned to a credit union (details supplied) would give another credit union the first offer on the offices, in view of the fact that the other credit union has agreed to let the members join their union; and if he will make a statement on the matter. [35959/16]

Written answers

Minister for Finance

On 2 November 2016 the President of the High Court, Mr Justice Peter Kelly, appointed joint provisional liquidators Jim Luby and Tom Rogers of McStay Luby to Rush Credit Union Limited. I have been informed by the Central Bank that the liquidators under section 80(1)(b) of the Central Bank and Credit Institutions (Resolution) Act 2011 have a statutory obligation to achieve the best result for the creditors of Rush Credit Union Limited.

In order to obtain the best result for all creditors in such cases, it is expected that in due course the properties of Rush Credit Union Ltd will be put up for sale on the open market and any potential purchasers, including other credit unions, will have an equal opportunity to bid for the properties.

Ireland Strategic Investment Fund Management

Questions (175)

Michael McGrath

Question:

175. Deputy Michael McGrath asked the Minister for Finance the detail of the operation to date of the activate capital fund administered by the ISIF; the number and value of individual loans approved and drawn down to date; the current cost of funding for the borrower availing of credit under the funding stream; his plans to improve the terms of the fund for the borrower; his further plans to extend the scheme to commercial real estate developments; and if he will make a statement on the matter. [35970/16]

Written answers

Minister for Finance

The National Treasury Management Agency (NTMA) who manage the ISIF inform me that to date in 2016, Activate Capital, which is a residential development financing entity, operational since January of this year, has provided site and working capital finance for the delivery of over 1,200 new homes. Activate's pipeline for new home construction funding is strong. The consistent feedback from developers and builders is that this specialist form of residential development lending is needed to help kick start the housing market.

It is important to appreciate that whilst ISIF has provided financing to Activate, it does not hold equity in nor is it involved in the management of the entity.  Activate is itself a private commercial entity and ISIF is precluded from disclosing any third-party commercially sensitive information. Accordingly, as drawdown profiles and the value and pricing of specific loans are commercially sensitive to Activate, it is not possible to disclose this information.  Doing so might actually compromise the value of ISIF's investment in Activate.  However, I  can confirm that the Activate base lending rate ranges from circa 6% to 10%, depending on the extent of leverage advanced and the risk characteristics of each specific project. As would be expected for projects of this nature, there is participation in equity upside if projects are successful so that the fund, and by extension taxpayers, share in any gains alongside the project promoter. 

Pension Provisions

Questions (176)

Jim Daly

Question:

176. Deputy Jim Daly asked the Minister for Finance the number of applications that have been refused for injury warrants under the Superannuation Acts since 1995 within his Department; and if he will make a statement on the matter. [35985/16]

Written answers

Minister for Finance

The Department of Finance has no record of any applications received or refused for Injury Warrants under the Superannuation Acts since 1995.

VAT Rate Application

Questions (177)

Catherine Murphy

Question:

177. Deputy Catherine Murphy asked the Minister for Finance further to Parliamentary Question No. 185 of 15 November 2016, the reasons that sectors such as print, that is, newspapers and magazines, and hair dressing services, are included in the 9% VAT rate bracket; if he is satisfied that the 9% VAT rate applicable here to the supply of certain goods and services related to the tourist industry should include such sectors; and if he will make a statement on the matter. [36067/16]

Written answers

Minister for Finance

I would point out that VAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply.  In this respect, when the 9% VAT rate was introduced in 2011 for tourism related to services, it was introduced in respect of certain goods and services to which a 9% VAT rate was permissible under EU VAT law, which were deemed relevant to tourism.

Hairdressing was deemed a tourism activity as it was recognised as a growing activity connected to hotel services and therefore part of the tourism industry.  Similarly, printed matter such as brochures, maps, programmes, leaflets, catalogues and newspapers were deemed relevant to tourism thus, it was decided to include printed matter among those items to which the 9% VAT rate applies. Both hairdressing and printed matter are specifically provided for in Annex III of the VAT Directive thus allowing for a reduced VAT rate to apply to them.

However, other tourist activities such as tour guide services and the short-term hire of cars, boat, caravans and mobile homes remain liable to VAT at the 13.5%, as the provisions of the EU VAT Directive did not allow for a 9% VAT rate to apply to them.

VAT Exemptions

Questions (178)

Michael McGrath

Question:

178. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 130 of 10 November 2016, if there is guidance available to those providing gymnastics lessons on the specific standards as set out by the Department of Education and Skills in the school syllabus for primary or secondary level schools that must be met in order to qualify for the VAT exemption; if the exemption can apply in respect of the provision of gymnastics lessons to those of pre-school age subject to the same standards being met; if the exemption can apply to the provision of lessons outside of a school environment, provided the standards are met; and if he will make a statement on the matter. [36095/16]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that the Department of Education and Skills provides guidance on the physical education curriculum as part of the syllabus for primary and secondary schools and early childhood education.

The supply of gymnastic lessons to children and young people is exempt from VAT, provided the lessons in question are provided as part of a programme that meets the standards set out by the Department of Education and Skills syllabus. For children of pre-school age the same principles apply: the lessons may be exempt subject to being provided as part of a programme that meets the standards set out by the Department of Education and Skills for children in this age group. Such services may be provided outside of a school environment.

Revenue is currently finalising guidance in relation to the educational exemption, which will outline in more detail the activities that come within the scope of the exemption. Revenue expects to publish this guidance early in 2017.

There are circumstances where the provision of gymnastic lessons may not be exempt, so, until detailed guidance is published, a person providing such services should contact VAT Interpretation Branch, Revenue, Dublin Castle ([e-mail]) to clarify if the service qualifies for the exemption.

State Banking Sector

Questions (179)

Michael McGrath

Question:

179. Deputy Michael McGrath asked the Minister for Finance his plans for the sale of a stake in a bank (details supplied); if he expects the environment to improve in the next 12 to 18 months to facilitate a sale of the bank; and if he will make a statement on the matter. [36097/16]

Written answers

Minister for Finance

The State's shareholding in AIB is a valuable asset and it is the Government's intention that the State will exit this and our other banking investments in a measured and careful manner. My primary objective in the disposal of these assets will be to maximise the return for the State.

I have indicated in the past that an IPO is likely to be the optimal route to recouping value from our investment in AIB. It is now clear that we are looking at 2017 at the earliest for any disposal and my Department has now commenced a procurement process for Global Coordinators as part of a banking syndicate to be appointed early in the new year to assist in a potential future IPO of AIB.

It is clearly too early to predict what market conditions may be for bank shares in the next 12 to 18 months, however, it is our intention to maintain optionality and to continue careful monitoring of bank equity valuations and prospects in order to be in a position to proceed with a transaction if appropriate over that period. The appointment of Global Coordinators is a critical step in order to create  that optionality.

Corporation Tax Regime

Questions (180)

Michael McGrath

Question:

180. Deputy Michael McGrath asked the Minister for Finance his views on the potential impacts on corporation tax revenue if the United States of America was to reduce its rate of corporation tax to 15%; and if he will make a statement on the matter. [36098/16]

Written answers

Minister for Finance

My Department continually monitors potential international tax changes that may have an impact on Ireland.  The impact of any US tax reform on Ireland will clearly depend on the exact nature of the reform.  Any reforms are likely to be complex and involve broader measures than simply reducing rates.

Regardless of the corporate tax rate applied by the US, Ireland's tax offering and Ireland generally will remain very attractive for US and other multinationals.  US companies will always need a base of operations in Europe and Ireland continues to be a very attractive place to invest.

Therefore, in this context, the maintenance of the standard 12.5% rate of corporation tax remains extremely important for Ireland's economy. Ireland, like other smaller member states, is geographically and historically a peripheral country in Europe.  A competitive corporate tax rate is a tool to address the economic limitations that come with being a peripheral country, as compared to larger core countries.  Ireland's corporation tax rate plays an important role in attracting FDI to Ireland and thereby increasing employment here.  This evidence underpins the Government's continued commitment to the 12.5% rate.

Common Consolidated Corporate Tax Base Proposals

Questions (181)

Michael McGrath

Question:

181. Deputy Michael McGrath asked the Minister for Finance his views on the European Commission's revised proposals for a common consolidated corporate tax base; the way he expects this proposal would affect corporation tax revenue if it were fully implemented; and if he will make a statement on the matter. [36099/16]

Written answers

Minister for Finance

The European Commission's proposal for a common consolidated corporate tax base (CCCTB) was published at the end of October.  It is a highly complex and technical proposal and time will be needed for all Member States to fully consider and discuss the proposal.  Ireland will engage constructively on the CCCTB proposal while critically analysing whether it is in our long-term interests. 

Analysis of the proposal is now underway to assess what the impact of the proposal would be on Irish corporation tax revenue.  The proposal is also likely to be subject to significant changes as discussions between Member States begin in the coming months.

As always, tax remains a matter of Member State competence and unanimity is required before any proposals can be agreed.

Small and Medium Enterprises Debt

Questions (182)

Michael McGrath

Question:

182. Deputy Michael McGrath asked the Minister for Finance if there are any initiatives to assist SMEs here struggling with currency fluctuations to avail of hedging services (details supplied); and if he will make a statement on the matter. [36100/16]

Written answers

Minister for Finance

As the Deputy will be aware, the UK referendum on EU membership has led to significant fluctuations in the value of Sterling against the euro and this presents challenges for Irish SMEs that export to the UK. 

It is likely that the recent exchange rate movements may signal a longer term, rather than cyclical, change in the value of Sterling. While hedging can provide some measure of relief and provide SMEs with time to adapt to this change, it is not possible to fully mitigate the long-term impact of currency devaluation through hedging.

State backed, low cost credit can assist SMEs to restructure their cost bases and re-price their products and services so they can continue trading with the UK in the weaker Sterling environment. In this context, it is encouraging to note that SMEs can access lower cost, flexible finance from the Strategic Banking Corporation of Ireland (SBCI). To the end of June 2016, the SBCI has lent €347 million to 8,619 SMEs.

My Department will, of course, continue to monitor fluctuations in the exchange rate and ensure that the wide range of State supports currently available are tailored to ensure that they provide effective support to SMEs affected by challenges arising from the UK referendum on membership of the European Union.

However, it would not be economically or fiscally sustainable for the State to subsidise an artificially set exchange rate.  Indeed, EU State Aid Regulations prohibit countries from directly subsidising exchange rates and hedging products.  It is important to note that there are multiple financial providers active in the Irish market that can provide a comprehensive and competitive range of hedging and foreign exchange products to SMEs who require them. Indeed, as the deputy points out in the information supplied with his question, there are new entrants to the Irish market that are providing currency solutions for Irish businesses.

Insurance Coverage

Questions (183)

Michael McGrath

Question:

183. Deputy Michael McGrath asked the Minister for Finance his views on the most recent case of a passported insurer running into difficulty with a company (details supplied); the plans in place to assist the roughly 1,000 businesses left without cover; and the progress at the European level to mitigate against such insurance failures. [36101/16]

Written answers

Minister for Finance

I am aware of the recent media reports in relation to Gable Insurance.

Gable Insurance AG (Gable) is a Liechtenstein incorporated company subject to prudential supervision by the Financial Market Authority (FMA) Liechtenstein. Gable was principally selling commercial insurance policies and surety bonds in a number of European countries, including Ireland, on a freedom of services basis.

Gable entered into administration in October 2016, with PricewaterhouseCoopers AG (PwC) appointed as Special Administrator by the FMA. Subsequently, following an extraordinary shareholders meeting on 11 November, the FMA were informed that no capital injection will be made to Gable by its parent company. Consequently, on 17 November the Special Administrator filed an application with the competent Liechtenstein court, seeking an order that Gable is wound-up. The FMA have stated that the Liechtenstein Court has opened winding-up proceedings and a liquidator has been appointed as of 18 November 2016.

In regard to Gable customers in Ireland to which the Deputy refers, the Central Bank are advising that Gable policyholders immediately contact their insurance broker to establish their legal position, including the need to seek alternative insurance cover. The Central Bank state that the urgency stems from the fact that any claim made by policyholders who hold active policies with Gable, may not be fully covered due to the indebtedness of Gable and the pending winding-up order.  I understand that the Central Bank has written to the relevant brokers in this regard.

Further information is available from the FMA at www.fma-li.li/en/. The Liquidator may be contacted at the following email address [e-mail]

It should be noted that Gable passported into Ireland under a key principle of the European Union, that of the freedom to provide services from one Member State throughout the European Union. This principle is an important one and is also availed of by a number of  insurance firms established in Ireland  in order to conduct business into other EU Member States.

Underpinning the ability to conduct business whether in a company's home territory or elsewhere in the EU under the freedom to provide services is the Solvency II Directive which came into force from 1 January 2016. Solvency II is a revision of EU insurance and reinsurance law designed to modernise supervision, deepen market integration and increase the competitiveness of European insurers. Prudential home state insurance supervision has been in place for decades based on the principle of mutual recognition, and an understanding that all supervisory authorities in the European Union supervise at a similarly high level. However,  in reality, there was no uniform standard of supervision in the EU, meaning that there was always the possibility for companies to exploit the regulatory/supervision regimes to their own advantage. One of the main purposes of Solvency II therefore is to try and ensure a harmonised approach to supervision across the EU going forward.

The Central Bank has indicated to me that it  continues to work closely with relevant foreign National Competent Authorities and EIOPA (the European insurance supervisory authority), which has identified as one of its key strategic objectives 'to improve the quality, efficiency and consistency of the supervision of EU insurers and occupational pensions.' It has informed me that it fully supports EIOPA's work in this regard and has actively engaged with EIOPA in its revision of the General Protocol which will enhance the exchange of information between supervisory authorities.

In the area of business conduct, the Central Bank has put in place a consumer protection framework to protect the interests of consumers in dealing with insurers.  The consumer protection framework also applies to European insurers selling in Ireland on a freedom of establishment basis or a freedom of services basis. The consumer protection framework includes codes and regulations that set out standards for firms when dealing with consumers, including when selling insurance policies, handling claims and renewing policies as well as the provision of information and dealing with complaints.  This includes the provisions contained in the Consumer Protection Code 2012.

Property Tax Administration

Questions (184)

Brendan Griffin

Question:

184. Deputy Brendan Griffin asked the Minister for Finance if multi properties owners will be permitted to pay their local property tax at the post office in view of the fact that every property has a unique property identification; and if he will make a statement on the matter. [36184/16]

Written answers

Minister for Finance

Section 44 of the Finance (Local Property Tax) Act 2012 (as amended) provides that owners of more than one relevant residential property must meet their Local Property Tax (LPT) payment and filing obligations via electronic means.

To assist property owners in meeting this statutory requirement, Revenue developed an online system that facilitates a wide range of payment alternatives, including various phased payment options. The online system is available at all times, is very easy to use and is fully secure.

Revenue also provides an LPT Helpline at 1890 200 255 that property owners can contact should they have any difficulties in accessing or using the online system. In such circumstances the helpline agents will assist in filing any returns or processing any payments.

Given the high standard of service already being provided by Revenue to LPT customers, including to multi property owners, I have no plans to change the current arrangements at this time.

Brexit Issues

Questions (185)

Darragh O'Brien

Question:

185. Deputy Darragh O'Brien asked the Minister for Finance if a Brexit sub-committee has been established in his Department; if so, when the sub-committee was convened; the number of times the sub-committee has met; the number of members on the sub-committee; and if he will make a statement on the matter. [36204/16]

Written answers

Minister for Finance

The Department of Finance has been assessing and preparing for the impact of Brexit since well before the referendum on 23 June 2016. This includes publication, under the joint Department of Finance/ESRI research programme, of two reports on the potential economic impacts of Brexit, in November 2015 and November 2016.

Brexit issues are discussed as the principal standing item by the EU Strategy Committee (a subcommittee of the Department's Executive Board). This Committee meets monthly and is chaired at Assistant Secretary level. It brings together a number of Divisions across the Department to develop policy advice to the Minister on EU issues of a strategic nature, including Brexit. These Divisions are Economic Division, Tax Division, EU and International Division, and the Banking and Financial Services Divisions which are represented on the committee at Assistant Secretary level. 

In addition, a new Brexit Unit within the EU and International Division was established in July 2016 to manage and coordinate the Department's work in the area of Brexit and to act as a key liaison point with the Department of the Taoiseach, in particular. In addition, the Department of Finance staffing complement in the Irish Permanent Representation to the EU in Brussels has been strengthened.