Written Answers Nos. 72-86
72. Deputy Joe Carey asked the Minister for Finance further to Parliamentary Question No. 125 of 17 November 2016, if he will address a matter (details supplied) regarding pension legislation; and if he will make a statement on the matter. [36708/16]
View answerThe Deputy is correct in indicating that the Irish tax treatment of exempting from tax the investment income and chargeable gains arising in respect of assets held in an approved retirement fund (ARF) applies regardless of whether the qualifying fund manager is an insurance company or some other type of provider.
However, as indicated in my reply to the Deputy's previous Parliamentary Question on the matter, under the terms of Article 14A of the Ireland/UK treaty, the exemption in respect of income and gains derived by a resident of one Contracting State from immovable property that is situated in the other Contracting State arises where the competent authority of the first State certifies that the income and gains are tax exempt in that State "by reason of provisions in the laws of that State which afford relief from taxation to charities and superannuation schemes as such, or to insurance companies in respect of their pension business".
Therefore, an ARF as such, is not exempt under the terms of the treaty. However, ARFs that come within the scope of "insurance companies in respect of their pension business" are covered by the exemption. There is no discrimination on the basis of Irish legislation; all superannuation schemes and all insurance companies in respect of their pension business are covered by the provision; it is a fact that ARFs are not superannuation schemes and not all ARFs fall within the insurance company element.
Finally, UK treatment for tax purposes of the income and gains of an ARF is primarily a matter for the UK. The issue has been reviewed by HM Revenue and Customs (HMRC) and, in that regard, I am informed by Revenue that the relevant Irish legislation has been considered by them. HMRC have concluded, however, that it would not be appropriate to extend the benefit available under Article 14A to ARFs (other than those forming part of an insurance company's pension business).
73. Deputy Mick Wallace asked the Minister for Finance his views on a recent new complaints process and complex fee refund compensation scheme announcement for business customers that were part of a bank's global restructuring group (details supplied); and the access that customers that were part of a group will have to the complaints process and compensation fund. [36725/16]
View answerThe Tomlinson report dealt with the lending practices of UK banks to Small and Medium Sized Enterprises (SMEs) and it alleged that a division of Royal Bank of Scotland (RBS), the Global Restructuring Group, was guilty of "systematic and institutional behaviour" in artificially distressing otherwise viable businesses. Following this report, the UK's Financial Conduct Authority (FCA) appointed Promontory Financial Group to further investigate these allegations. Promontory's work, along with the involvement of the FCA, led RBS to recently announce redress for certain SME customers of RBS's Global Restructuring Group. The final details of the redress scheme remain to be agreed with the FCA.
As I have previously answered, Ulster Bank Ireland Limited undertook an independent review into the relevance of these allegations to its corresponding division, namely the Global Restructuring Group Ireland (GRGI). On the 19th December 2014, Ulster Bank published the findings of the independent review by Mason Hayes Curran into practices at GRGI. The investigation found no evidence to support the allegations and suggested that GRGI's driving policy was to manage its customers through the cycle, supporting them where possible to return them to viability.
The Central Bank is the statutory body with responsibility for the investigation of any such allegations in an Irish context and I consider this as a matter properly for the Central Bank. I am confident that legislative changes since the financial crisis have equipped the Central Bank with an array of investigative, regulatory and enforcement powers to ensure that regulated financial service providers adhere to the requirements of financial services legislation.
These changes include significantly enhanced powers for the Central Bank to gather information under the Central Bank (Supervision and Enforcement) Act 2013 which broadened the Banks' information gathering and authorised officer powers. It is evident that the Central Bank is properly undertaking its enforcement role by the recent sizeable settlements in enforcement cases.
74. Deputy Michael McGrath asked the Minister for Finance the yield from the 1% levy on life assurance policies in each year since it was introduced; and if he will make a statement on the matter. [36731/16]
View answerI am advised by Revenue that the following table sets out the total amounts collected in respect of life assurance levy for the years requested by the Deputy.
|
- |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
|
- |
€m |
€m |
€m |
€m |
€m |
€m |
|
Life Assurance Levy |
€45.03 |
€31.60 |
€24.12 |
€25.40 |
€27.85 |
€30.70 |
75. Deputy Michael McGrath asked the Minister for Finance if he will assist a person (details supplied) in County Cork to access information. [36739/16]
View answerI am advised by Revenue that as the information concerned relates to the tax affairs of another individual, then in accordance with the confidentiality obligation imposed on Revenue by Section 851A Taxes Consolidation Act 1997, the information requested cannot be provided.
76. Deputy Michael McGrath asked the Minister for Finance the number of new licence applications received by the Central Bank for each year from 2012 to 2016 to date by category, in tabular form; the number approved to date and withdrawn; the number in which a decision remains outstanding by the Central Bank; and if he will make a statement on the matter. [36747/16]
View answerThe Central Bank does not publish information on applications for authorisation for confidentiality reasons. Authorised firms are listed on the Central Bank registers, which are available on registers.centralbank.ie.
The Central Bank does publish at regular intervals its Regulatory Service Standards Performance Report. The most recent report is available from the Central Bank.
Authorisation of Investment Funds and Financial Service Providers applications is an important supervisory gateway and a significant operational activity of the Central Bank. The Central Bank is committed to providing a clear, open and transparent authorisation process while ensuring a rigorous assessment of the applicable regulatory standards.
77. Deputy Michael McGrath asked the Minister for Finance if the Office of the Revenue Commissioners is examining the transfer of pensions offshore; the number and value of such transfers currently being examined; the penalties imposed on any transfers to date; and if he will make a statement on the matter. [36748/16]
View answerI am informed by Revenue that they have been engaged since 2014 in a compliance programme that involves visits to pension providers, pension administrators and pension trustees in relation to the transfer of pension funds off-shore. The objective of the compliance program is to ensure that the purpose of any transfer of pension funds off-shore is for bona fide reasons and does not contravene tax legislation or undermine pension tax policy. This compliance program is on-going.
From 2012 to date a total of 565 notifications to transfer pension arrangements off-shore have been received by Revenue and the value of the funds transferred are in excess of €73million. It is important to bear in mind that transfers of pensions offshore are made for bona fide purposes and are fully compliant with tax legislation and pension tax policy.
I am further informed by Revenue that moving pension funds off-shore in an effort to circumvent the requirements of Irish pension tax legislation may fall foul of the conditions under which a pension scheme was approved by Revenue as an exempt approved scheme or the conditions under which a Personal Retirement Savings Account (PRSA) product received Revenue approval.
Pension tax legislation does not provide for any penalties for non-compliance in this area. The sanction available is the withdrawal of the approval of the pension scheme as an exempt approved scheme or the withdrawal of the approval of the PRSA product. The effect of such sanctions is the claw back of the tax relief previously given. As of this point in time no such withdrawal of approval has taken place.
As is established practice, my Department will liaise as appropriate with Revenue and other relevant Departments in relation to this issue.
78. Deputy Michael McGrath asked the Minister for Finance the implications for Ireland of the recent statement by the European Commission on fiscal expansion; and if he will make a statement on the matter. [36751/16]
View answerGiven the continued relatively weak recovery in the euro area as a whole, the European Commission is recommending that a modest fiscal expansion be undertaken in the euro area. An expansion of up to 0.5 per cent of GDP is recommended by the Commission. It is crucial to stress that the Commission recommends that this expansion be differentiated by country and, in particular, with reference to Member States' positions with respect to the fiscal rules.
Specifically, the Commission is recommending that Member States that are over-achieving their budgetary targets should use this excess fiscal space. The rationale is that this spending in some Member States would support the recovery in the euro area as a whole as other Member States would be able to ramp up exports to those Member States implementing an expansionary policy.
What this means for Ireland in particular is that the Commission is recommending that Member States that have not yet achieved their targets, i.e. a balanced budget, should continue on the adjustment path. In other words, Ireland should continue to implement the fiscal policy as laid out in the Budget.
My Department broadly agrees with the Commission recommendation to the euro area as a whole. Monetary policy is now considered to be 'over-burdened' and it is time for fiscal policy to support the recovery also but this should of course be on a case-by-case basis. Those Member States with fiscal space should use it. This would improve the recovery in the euro area as a whole. Those Member States which have not yet achieved a balanced budget should continue to implement 'tight' policies so that their public finances remain on a sustainable path. This is what we are doing in Ireland.
I should add that this approach would have the added benefit of improving demand in our external trading partners which of course is good for Ireland.
79. Deputy Michael McGrath asked the Minister for Finance the status of the tracker mortgage redress scheme for each bank affected; and if he will make a statement on the matter. [36752/16]
View answerThe Central Bank is undertaking an examination of tracker mortgage related issues covering among other things transparency of communications with and contractual rights of tracker mortgage customers. The Tracker Mortgage Examination remains a key priority for the Central Bank as it continues to challenge lenders to ensure that progress is being made and fair outcomes are being achieved for customers.
All lenders have developed a detailed plan and framework, including establishing appropriate governance and reporting structures, for conducting the Examination and are carrying out internal reviews of their mortgage books, to identify any customers who may have been impacted by a failure to honour a customer's contractual entitlements, or comply with the regulatory requirements regarding disclosure and transparency of information.
While all lenders are currently in the process of carrying out their internal reviews it is important to note that some lenders may have their internal reviews completed sooner than others depending on the size of their mortgage books and the complexities associated with them completing the Examination.
As groups of impacted customers are identified, in the first instance, the lender must stop charging the incorrect rate of interest on the customer's account, and then communicate this to the customer, to ensure that any further customer detriment is stopped as early as possible.
Once a full review of the customer's account is complete, following external independent third party assurance, the lender will then issue a letter to the customer explaining the nature of the error, the correct rate to apply to the customer's account and information on the next steps in the Examination, including the redress and compensation process.
The Central Bank has informed me that it will provide an update on progress on the Examination before the year end and that it can provide a copy of this update to the Deputy.
80. Deputy Michael McGrath asked the Minister for Finance the total staff numbers in the Central Bank per annum from 2008 to date in 2016 in tabular form; and if he will make a statement on the matter. [36784/16]
View answerPlease find in the following table the total staff numbers in the Central Bank for each year from 2008, to 31st October 2016. These are calculated on the basis of total full time equivalents.
|
Year |
FTEs |
|
2008 |
1,022 |
|
2009 |
1,044 |
|
2010 |
1,226 |
|
2011 |
1,372 |
|
2012 |
1,394 |
|
2013 |
1,384 |
|
2014 |
1,364 |
|
2015 |
1,516 |
|
2016 (31st Oct) |
1,597 |
81. Deputy Michael McGrath asked the Minister for Finance the total number of Central Bank and his Department's staff seconded to the European Central Bank; and if he will make a statement on the matter. [36785/16]
View answer54 Central Bank staff are currently seconded to the European Central Bank. There are no Department of Finance staff currently seconded to the European Central Bank.
82. Deputy Michael McGrath asked the Minister for Finance the total number of European Central Bank on-site inspections of Irish financial institutions in 2015 and 2016; the number carried out by ECB staff; the number carried out by the Central Bank on behalf of the ECB; and if he will make a statement on the matter. [36786/16]
View answerSince the commencement of the Single Supervisory Mechanism (SSM) in November 2014, a total of 35 onsite inspections have been carried out on Significant Institutions and Subsidiaries of Significant Institutions in Ireland. Of these 35 inspections, 3 have been led by a Head of Mission from within the SSM but outside Ireland and in the case of these three inspections the majority of the team was comprised of Central Bank staff. All of the other inspections were led by the Central Bank with staff from other countries within the SSM framework and the SSM participating in four missions, to build experience and networks within the SSM. Central Bank staff have also participated in inspections of banks in other jurisdictions within the SSM. A further schedule of inspections has separately been carried out on Less Significant Institutions that are within the direct remit of the Central Bank.
Additionally a total of 8 internal model investigations have been carried out on Significant Institutions in Ireland. All of these investigations have been led and staffed exclusively by the Central Bank, with the work performed in the context of SSM procedures.
83. Deputy Dara Calleary asked the Minister for Finance the number of vacancies on State boards in his Department; the number filled since he took office; the number filled through the Public Appointments Service; the timelines to fill vacancies; and if he will make a statement on the matter. [36838/16]
View answerIn response to the Deputy's query please find, in tabular form, details of the number of vacancies on State boards under the aegis of my Department; the number filled since 6th May 2016; the number filled through the Public Appointments Service; the timelines to fill vacancies. All appointments to State Boards are made in conjunction with the State Board Appointment process.
|
State board |
The number of vacancies on boards or agencies within his department's remit that currently exist |
The number filled since he/she took office (start of this Dáil) |
The number filled through the Public Appointments Service and the timelines to fill vacancies |
|
Central Bank Commission |
2 possible vacancies (legislation provides that at least 6, but no more than 8, members are to be appointed by the Minister; currently there are 6 such appointed members) |
Nil |
A Public Appointments Service (PAS) process is currently underway |
|
Credit Union Restructuring Board |
Nil |
Nil |
N/A |
|
Financial Services Ombudsman Council |
7 possible vacancies with effect from 28 October 2016 (current legislation allows between 5 and 10 Council Members). |
Nil |
A Public Service Appointments (PAS) process is currently underway. |
|
Irish Fiscal Advisory Council |
Nil |
Nil |
N/A |
|
National Asset Management Agency |
2 |
Nil |
N/A |
|
National Treasury Management Agency Members |
1 vacancy exists that arose on 21 October 2016 |
Nil |
A Public Appointments Service (PAS) process is currently underway |
|
Strategic Banking Corporation of Ireland |
Nil |
Nil |
N/A |
As I indicated earlier, the details provided relate to the commencement of the Government on 6th May 2016. Should the Deputy require I can make arrangements to provide further details dating back to 2011 when I took office as Minister for Finance in the 31st Dáil.
84. Deputy Jan O'Sullivan asked the Minister for Education and Skills when a new school building project in Whitecross, Julianstown, County Meath, will commence; when the work will be completed; and if he will make a statement on the matter. [36592/16]
View answerThe project to which the Deputy refers has reached an advanced stage of architectural planning, Stage 2b, which involves the applications for statutory approvals and the preparation of tender documents.
All statutory approvals have been secured and the Design Team are working on completing the Stage 2b report for submission to the Department for review. Issues had arisen with the delivery of a single phase decant option to provide temporary accommodation for students for the duration of the major building project. A meeting was convened by my Department recently, to which the Board of Management and their Design Team were invited in order to resolve any outstanding issues in this regard to enable Stage 2b to be finalised.
Once the Stage 2b submission has been approved my Department will be in further contact with the Board of Management regarding the progression of the project at that time.
85. Deputy Jan O'Sullivan asked the Minister for Education and Skills the progress in locating a site for a school building project (details supplied); and if he will make a statement on the matter. [36596/16]
View answerAs the Deputy may be aware, the building project for the school in question is included in the 6 year programme that was announced last November.
Officials from my Department have been working closely with Louth County Council under the Memorandum of Understanding for the acquisition of school sites in order to identify and procure a suitable site for the school.
A number of potential site options have been identified and these are currently under consideration. Due to commercial sensitivities associated with site acquisitions generally I am unfortunately not in a position to provide further information at this time.
86. Deputy Michael Healy-Rae asked the Minister for Education and Skills the status of the case of a person (details supplied) regarding special needs assistance; and if he will make a statement on the matter. [36604/16]
View answerThe National Council for Special Education (NCSE), which is an independent statutory agency, is responsible, through its network of Special Educational Needs Organisers (SENOs), for processing applications from schools for special educational needs supports, including SNA support.
The NCSE allocates S support to schools in accordance with the criteria set out in my Department's Circular 0030/2014, which is available on my Department's website at www.education.ie in order that students who have care needs can access SNA support as and when it is needed.
Responsibility for deciding on the quantum of educational supports and resources to be allocated to schools to support individual pupils rests with the NCSE.
It should be noted that SNA allocations are not made to individual children, but are made to schools to support the care needs of children with assessed special educational needs in the school.
Where a school wish to make a new application for SNA support for a pupil who is due to enrol to the school they should contact their local special educational needs organiser (SENO).
Where a school wishes to appeal the SNA support allocation which has been made to them, they may do so through the NCSE appeal process, details of which are set out at www.ncse.ie. The option to invoke the NCSE appeals process is open to the school in question.
All schools have the contact details of their local SENO. Contact details are also available on the NCSE website. The local SENO is also available to discuss any concerns that parents have about the present or future educational needs of their child.
As the question raised by the Deputy relates to an application for SNA support for an individual child, I have arranged for this question to be forwarded to the NCSE for direct reply to the Deputy.
