Thursday, 1 Dec 2016

Written Answers Nos. 130-142

Garda Data

Questions (130)

Robert Troy

Question:

130. Deputy Robert Troy asked the Tánaiste and Minister for Justice and Equality the number of gardaí that have had to discard holidays due to unscheduled work obligations. [38252/16]

Written answers

Tánaiste and Minister for Justice and Equality

I am informed by the Garda Commissioner that the information requested by the Deputy is not readily available and would require a disproportionate amount of Garda time and resources to compile.

Prisoner Data

Questions (131)

Jim O'Callaghan

Question:

131. Deputy Jim O'Callaghan asked the Tánaiste and Minister for Justice and Equality the number of mobile phones that were confiscated from the prison population for each of the past five years and to date in 2016; and if she will make a statement on the matter. [38267/16]

Written answers

Tánaiste and Minister for Justice and Equality

I am informed by the Irish Prison Service that the number of mobile phones confiscated in Irish Prisons for the past five years and to date in 2016 is set out in the following table.

Year	Number of phones
2011	1368
2012	1150
2013	805
2014	728
2015	626
**2016	525

**2016 figures are up to 23/10/2016

I wish to advise the Deputy that possession of a mobile phone in prison is a criminal offence under section 36 of the Prisons Act, 2007. A prisoner found to be in possession of a mobile phone is liable to be dealt with under the prison disciplinary system and the matter referred to an Garda Síochána for investigation and possible prosecution.

Through a vigorous approach to screening and searching, the Operational Support Group continues to recover numerous mobile phones and components.

The measures currently in place to prevent the use of mobile phones by prisoners include metal detectors and other screening equipment at the point of entry to prisons, the use of active canine detection teams in recovering same from vehicles and buildings, as well as random and intelligence led targeted searching of prisoners and locations within the prison Estate.

These searches have been particularly effective and local intelligence indicates that the availability of mobile phones has decreased across the prison system. The number of mobile phones seized in prisons has reduced, year on year, since 2011, and the Deputy can be assured that the prevention of the smuggling of phones and other contraband remains a priority for the Irish Prison Service.

Garda Powers

Questions (132)

Martin Heydon

Question:

132. Deputy Martin Heydon asked the Tánaiste and Minister for Justice and Equality the powers under legislation that an An Garda Síochána has to deal with begging on streets; and if she will make a statement on the matter. [38273/16]

Written answers

Tánaiste and Minister for Justice and Equality

The law on begging is set out in the Criminal Justice (Public Order) Act 2011. The Act defines begging as requesting or soliciting money or goods other than in accordance with a licence, permit or authorisation.

Section 2 of the Act provides that it is an offence while begging in any place to harass, intimidate, assault or threaten any other person or persons, or obstruct the passage of persons or vehicles. A person who commits such an offence is liable, on summary conviction, to a fine of up to €500 or imprisonment for a term of up to one month or both.

Section 3 of the Act gives the Garda Síochána the power to direct any person who is begging in any place or acting in a manner that constitutes an offence under section 2 to desist and leave the vicinity in a peaceable and orderly manner. This section also specifically includes begging at certain places such as at or near entrances to business premises, ATM machines, vending machines or night safes. A person who contravenes a direction under this section is guilty of an offence and is liable, on summary conviction, to a fine of up to €500.

Section 4 of the Act gives the Garda Síochána powers of arrest without warrant where there are reasonable grounds to believe that an offence has been committed under section 2 or 3 of the Act.

Departmental Inquiries

Questions (133)

Clare Daly

Question:

133. Deputy Clare Daly asked the Tánaiste and Minister for Justice and Equality the procedure in setting up the terms of reference for five inquiries to be established under section 42 of the Garda Síochána Act 2005, as amended, following the work of the IRM; and the persons or bodies that will be consulted. [38281/16]

Written answers

Tánaiste and Minister for Justice and Equality

The five inquiries to which the Deputy refers are to be established following my acceptance of recommendations by the panel of the Independent Review Mechanism.

Officials in my Department have consulted with the Office of the Attorney General with regard to matters concerning the establishment of these inquiries and their terms of reference. Draft terms of reference have been prepared. In accordance with section 42 (3A) of the Garda Síochána Act 2005, as amended, there is a requirement to consult with the Policing Authority with regard to these draft terms of reference. This consultation process has been commenced. When the consultation process with the Policing Authority has been completed, I will be in a position to proceed to the establishment of these inquiries.

In order to keep the persons whose complaints have let to the decision to establish the section 42 inquiries updated on the matter, my Department wrote to each of the complainants recently informing them of the proposed scope for the inquiry relating to their particular complaint.

Departmental Legal Costs

Questions (134)

Michael McGrath

Question:

134. Deputy Michael McGrath asked the Tánaiste and Minister for Justice and Equality the amount of legal fees paid by her Department in respect of tribunals of inquiry established by the State and any resulting legal actions; if she will provide these broken down by tribunal and by year for 2006 to 2016, in tabular form; and if she will make a statement on the matter. [38457/16]

Written answers

Tánaiste and Minister for Justice and Equality

I 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.

Insurance Coverage

Questions (135)

Mick Barry

Question:

135. Deputy Mick Barry asked the Minister for Finance the options that exist for affordable home insurance for persons in the Riverview area of Cork who have received high quotes or no quotes from private insurance firms on the basis that they deem the area a flood risk. [38237/16]

Written answers

Minister for Finance

The flooding events last year raised issues in relation to flood insurance and I am aware of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses.  One of my primary concerns in the area of insurance is that homeowners have access to insurance to cover unforeseen losses, including flooding.  However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.  In my role as Minister for Finance, I have responsibility 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 or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.  

Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance. 

I am advised by Minister of State Canney who has responsibility for Flood Risk Management at the Office of Public Works (OPW) that in line with government policy, that Office is in the process of completing the Catchment Flood Risk Assessment and Management (CFRAM) Programme to give a clear and comprehensive picture of flood risk in 300 areas including 90 coastal areas identified as being at potentially significant risk and impact from flooding and to set out how the risk can be prioritised and managed effectively and sustainably.

The CFRAM Programme is being undertaken, in partnership with the OPW's consultants, Local Authorities and other stakeholders.  This is a strategic approach that recognises the need, in line with international best practice, to move to a more sustainable, planned and risk-based approach to dealing with significant flooding risks. 

The Programme involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of final Flood Risk Management Plans (FRMPs). This  is scheduled for Spring 2017 and will set out the preferred feasible measures, both structural and non-structural, that can manage the flood risk in each of the 300 areas.

The CFRAM Programme is assessing the risk for the majority of those properties in communities at potentially significant risk from flooding. The implementation of flood risk policy must address solutions for both properties assessed through the CFRAM Programme and for other at risk properties. Each category will involve both structural and non-structural solutions.

In relation to the area of Riverview Estate, Tower, Blarney, Co Cork, it was identified as an area for further assessment in the South Western CFRAM Programme. It was initially assessed as part of the Lee CFRAM Study, the outputs of which have been incorporated into the draft Flood Risk Management Plans (FRMP) for the South Western CFRAM.

I am advised that the public consultation on the draft flood risk management plans for the South Western CFRAM Study, including  the further assessment of Tower finished on 23 September, 2016. The draft plans will now be finalised and all observations and comments received will be considered. A prioritised list of feasible measures will then be drawn up to address flood risk in an environmentally sustainable and cost effective manner.

It should also be noted that the Memorandum of Understanding (MOU) between the OPW and Insurance Ireland has provided for a system of information sharing in relation to completed flood works. The nature of this arrangement is such that it should lead to a greater availability of flood cover in previously high risk area, and at better prices.  The MOU is currently being reviewed in order to see what can be done to strengthen it.

Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated.  In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.

Tax Collection

Questions (136)

Tom Neville

Question:

136. Deputy Tom Neville asked the Minister for Finance his views on a matter (details supplied) regarding correspondence from the Revenue Commissioners with regard to a tax liability; and if he will make a statement on the matter. [38110/16]

Written answers

Minister for Finance

I would first note that, since the establishment of the Revenue Commissioners in 1923, successive Governments and the Oireachtas have reaffirmed the principle of the independence of the Revenue Commissioners in their dealings with the tax affairs of any individual under tax and customs legislation. This independence is seen as critical to maintaining the integrity of the taxation system and forms a key pillar of Revenue's Governance framework, and it would therefore be neither appropriate nor possible for a Minister for Finance to instruct the Revenue Commissioners as to their policy with regard to the administration of tax legislation.

I am advised by Revenue that patronage shares were received by suppliers of milk as a consequence of and in proportion to the quantity of milk supplied. Where the number of shares issued is based on and dependent on the level of business between the members and the co-operative or nominated purchaser and where the co-operative does not receive the market price for the shares issued, then the profit accruing i.e. the difference between the market value of the shares issued and the price paid for these shares, to the member is a trading receipt of the member's farming income and accordingly chargeable to income tax. 

Capital Gains Tax (CGT) applies to the growth in the value of a capital asset. For example, if an individual sells a share that grew in value after it was acquired, CGT would apply, subject to the availability of any exemption, on the increase in value.  The matter at issue in the particular case, however, is the initial value of the shares received by farmers as a result of their trading relationship either with the co-op or the nominated purchaser. The shares were a form of payment received for the milk supplied by the farmers and therefore, in the view of Revenue, the value of the shares forms part of the trading income for the relevant years. It is this value which forms the base cost for CGT in relation to any subsequent disposal.

I am informed by Revenue that the letter which issued to farmers was in the first instance an enquiry as to whether the value of the shares received was included in the accounts for the years in question. Farmers who did include the value of the shares in their accounts will not have any additional income tax liability in relation to the specific matter raised in these enquiries. 

Early engagement with Revenue will, where the share value received has been included in the accounts for the years in question, result in an early conclusion of Revenue's inquiries.  Early engagement with Revenue, where the share value received was not included in the accounts for the years in question, will facilitate a discussion between the individuals concerned and Revenue with a view to agreeing a mutually satisfactory arrangement, including if necessary, a phased payment arrangement, to deal with the tax liability involved. I am advised by Revenue that there have been extensive contacts with them in regard to this matter generally and they are and will be responding very quickly to those contacts in order to assist farmers to bring matters to an early conclusion.

I would ask the Deputy to encourage any farmers who have received a letter from Revenue in this matter to engage with Revenue without delay.

Insurance Costs

Questions (137)

Noel Grealish

Question:

137. Deputy Noel Grealish asked the Minister for Finance if it is illegal for the insurance industry to penalise a driver by charging a higher premium on the basis that the Irish citizen has an EU driving licence; and if he will make a statement on the matter. [38125/16]

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 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. 

However, the State can play a role in helping to stabilise the market and influence factors which contribute to 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, including the issue of transparency of pricing in the insurance industry.

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 Working Group provided me with an initial set of emerging recommendations at the end of October 2016 which have been published on the Department of Finance website and are available at www.finance.gov.ie/what-we-do/banking-financial-services/financial-services-division-2-eu/insurance-policy-and-0. 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.

Departmental Schemes

Questions (138)

Joe Carey

Question:

138. Deputy Joe Carey asked the Minister for Finance the way in which his Department defines "drawdown" for the purposes of the help-to-buy incentive; and if he will make a statement on the matter. [38129/16]

Written answers

Minister for Finance

To be eligible to apply for the Help to Buy incentive, a first-time buyer must have signed a contract to purchase a new build property on or after the 19th July 2016. In the case of a self-build home, they must have drawn down the first tranche of the relevant mortgage on or after that date. The full conditions of the scheme and its commencement remain subject to the approval of Finance Bill 2016 by the Oireachtas.

The date of 19 July was chosen as this was the date of the launch of 'Rebuilding Ireland: Action Plan for Housing and Homelessness' when the introduction of the incentive was initially announced. The backdating of this incentive was announced at that time with a view to avoiding any potential interruption in house sales, by purchasers who may otherwise have deferred purchases, pending the announcement of full details of the incentive.

In relation to the use of the word drawdown, the Revenue Commissioners will follow the standard meaning of mortgage drawdown as it is applied by the financial lending institutions. As transfers of mortgage funds are conducted electronically, a mortgage is deemed to have been drawn down as soon as the relevant funds are debited from the individual's mortgage account. This is also the point from which the financial institution begins to calculate interest repayments on the loan. These principles are the ones that will be followed by the Revenue Commissioners with regard to calculating the relevant date for eligibility for a rebate of income tax under the Help to Buy incentive.

Mortgage Applications Approvals

Questions (139)

Pearse Doherty

Question:

139. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to difficulties potential new businesses are having in accessing new mortgages and loans on mixed use properties from the banking sector despite apparent credit worthiness; the approach of the State-owned banks to such applications; the details of any specific products they have for such potential start-ups; and if he will make a statement on the matter. [38131/16]

Written answers

Minister for Finance

I am not familiar with cases where issues have arisen related specifically to lending practices for new businesses secured by mixed-use property. However, I am aware that most banks will consider that a mixed-use property is an acceptable form of security for business loans, except where any particular use is likely to restrict the Bank's ability to realise its security in the event of borrower default. It has also been brought to my attention that there are regulatory challenges to overcome in the implementation/fulfilment of mixed use lending where the customer is using the premises for both business and personal residential requirements.

AIB have informed me that, at present, where the bank receives a request to facilitate mixed-use lending, the bank would investigate with the customer to see if the folio for such mixed use properties could be split which would require two separate loans (Business Loan for the business part of premises and a Mortgage for the residential part of the premises). The bank understands that this type of split can be necessary in such mixed use lending cases, to meet the different regulatory obligations arising under the Mortgage Credit Regulations 2016, SME Lending Regulations 2015 and the Consumer Lending/arrears regulation (CPC, CCMA).

Permanent TSB has advised me that the bank offers business loans to both new and established small business enterprises to fund trading activities, and that the loans may be secured or unsecured. The Bank offers potential new customers the opportunity to discuss business plan funding requirements in order to determine the most suitable funding options and funding structures given the individual circumstances of the business. PTSB have also advised that where the overall use of the property is such that the loan would be classified as a commercial real estate investment loan, the Bank does not currently provide new lending facilities, as it is restricted from this type of lending under its agreed restructuring plan with the European Commission.

As the deputy will be aware, my department is involved in a number of initiatives to assist in the supply of credit to new businesses starting out. Where an entrepreneur has had a difficulty in securing a loan from a bank, there are a large number of options available to them. For example the Credit Review Office which helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. Also, the Microenterprise Loan Fund, administered by Microfinance Ireland, provides support in the form of loans for up to €25,000, available to start-up, newly established, or growing micro enterprises employing less than 10 people, with viable business propositions.

Central Bank of Ireland

Questions (140)

Pearse Doherty

Question:

140. Deputy Pearse Doherty asked the Minister for Finance the number of expressions of interest, new applications for licences and applications for the extension of permissions the Central Bank has received from banks, insurers and asset managers since 24 June 2016. [38135/16]

Written answers

Minister for Finance

The Central Bank has seen a significant number of enquiries that are Brexit related since the June referendum across all sectors including banking, insurance, investment firms, funds and fund service providers, payments and fintech.

The vast majority of enquiries have been exploratory in nature, however recently they are seeing a number of these enquiries beginning to advance further with enquirers starting to firm up their intentions, including possible plans to seek an authorisation.

It is difficult at this stage for the Bank to predict what this might mean in terms of actual numbers of submitted applications generally. Firms making enquiries can be thought of in three broad categories: new entrants seeking first time authorisations; currently authorised firms seeking to expand existing operations in Ireland; and firms seeking to reverse plans to wind down operations in Ireland as a result of the Brexit vote.

As part of its authorisation mandate, the Central Bank is committed to providing a clear, consistent, open and transparent authorisation process, while ensuring a rigorous assessment of the applicable regulatory standards. To ensure transparent and predictable authorisation timelines for high-volume processes, the Bank publishes on a semi-annual basis its Regulatory Service Standards Performance Report. These reports, which are available on its website, provide real transparency around the authorisation process for firms including measurement against standards to which the Bank is committed in terms of application processing across each of the sectors that it regulates.

Central Bank of Ireland

Questions (141)

Pearse Doherty

Question:

141. Deputy Pearse Doherty asked the Minister for Finance the timeframe in which the Central Bank is in a position to answer applications for licences from banks, asset managers and insurers; the way in which those timeframes compare to the situation before 24 June 2016; and if he will make a statement on the matter. [38136/16]

Written answers

Minister for Finance

I am informed by the Central Bank that the assessment of authorisation applications and the approach taken differs depending upon the type of firm and sector.  In some sectors such as funds licensing, the turnaround time is a matter of days. In other areas the timing prescribed by EU law is a matter of months, once an application is considered as complete.  In between these extremes there is a wide variety of timeframes depending on the sector and type of business being proposed.  Actual time will depend on the type of business for which a license is being sought and the extent to which the authorisation procedure can be considered more or less standardised or more or less complex.

In relation to unique and complex applications, the authorisation process is inevitably more layered than routine cases, requiring a substantial commitment of resources and the assembly of dedicated project teams with the requisite technical skills. It is also important to note that since the establishment of the Single Supervisory Mechanism (SSM) in 2014, the ECB, with input of the Central Bank as the national competent authority (NCA), is the competent authority for the granting and revocation of banking licences.

Timelines for applications processing are set out on a sector by sector basis on the Central Bank website. The length of the application process is set from the date of submission of a complete application, which in itself can be a challenging exercise for firms and take some time to achieve. This process can include an important period of engagement, discussion and back and forth on key issues before the application is considered complete. To assist this and to ensure that the process is as transparent as possible, the Central Bank regularly meets and engages with firms in advance of the completed application being submitted. This can be particularly helpful in more complex cases.

To ensure transparent and predictable authorisation timelines for high-volume processes, the Bank publishes on a semi-annual basis its Regulatory Service Standards Performance Report. These reports, which are available on the Bank's website, provide real transparency around the authorisation process for firms including measurement against standards to which the Bank is committed in terms of application processing across each of the sectors it regulates.

The Central Bank has not amended its stated target timelines for any sector since June 2016.

Central Bank of Ireland

Questions (142)

Pearse Doherty

Question:

142. Deputy Pearse Doherty asked the Minister for Finance the efforts the Central Bank has made to increase resources in order that it can cope with the increase in applications in the aftermath of Brexit; and if he will make a statement on the matter. [38137/16]

Written answers

Minister for Finance

I am informed by the Central Bank that its workforce planning for next year, which is currently being finalised, reflects the additional resources needed to deal with applications that is expected to come its way. This will take the form both of an increase in staff, that is additional staff recruited to the Bank, in areas where it already knows that it will need additional numbers, and also contingency numbers for those areas where it thinks they might be needed.

It is also to be noted that across all of the sectors that the Bank regulates, it adopts a risk-based approach to supervision, articulated in its "PRISM" framework. This is a dynamic approach to supervision which means that priority areas of focus are kept under constant review with resources being deployed to meet the evolving priorities. The idea that the Bank will redeploy resources to address areas of rising demand, such as Brexit presents, is a very natural one and one that it is already implementing.

The Governor has previously indicated that where further resources are necessary due to an expanded universe of regulated and supervised firms, the Bank has the ability to effectively re-prioritise where it needs to meet any increased level of demand and complexity, and if required, the Central Bank will increase staff numbers as necessary.