Brendan Griffin
Question:124. Deputy Brendan Griffin asked the Minister for Finance his plans to allow further access to private pension funds before retirement; and if he will make a statement on the matter. [3849/17]
View answerPension Provisions
Questions (124)
Written answers
The State encourages individuals to put funds aside for their retirement by incentivising such savings through the tax system. Ongoing contributions to Revenue- approved pension schemes and personal pension plans are exempt from income tax (within limits) while the investment growth of such schemes and plans are also tax exempt. Retirement benefits are taxable at drawdown at normal retirement age with the exception of the permissible tax-free retirement lump sum.
These concessionary tax treatments are not available to other savings arrangements. This is because pre-retirement access to the benefits from pension schemes or plans is generally not permitted, as these arrangements (and the associated tax reliefs on contributions and pension fund growth) are designed to facilitate long term savings based on the principle that the benefits will be "locked away" to help fund an adequate income in retirement.
The point at which pension savings can be accessed varies according to the type of savings vehicle and, in the case of occupational schemes, the scheme's particular rules. It may be worth noting, however, that in many cases it is possible to access pension savings before the age of 65 and in some cases they can in fact be accessed from age 50. It can also be possible to access savings early on grounds of ill health.
I do not currently have any plans to extend the range of circumstances in which pension savings can be accessed early.
VAT Rate Application
Questions (125)
Pearse Doherty
Question:125. Deputy Pearse Doherty asked the Minister for Finance if the Revenue Commissioners or his Department have examined whether the recent ECJ ruling on VAT on the M50 toll will have any effect on any other applications of VAT; and if he will make a statement on the matter. [3961/17]
View answerWritten answers
I am advised by the Revenue Commissioners that this judgment was published on Thursday 19th January and that they are considering its implications. The CJEU ruling was given in answer to questions referred to it by the Tax Appeal Commissioners in relation to an appeal case; therefore the ruling must be interpreted and applied in the first instance by the Tax Appeal Commissioners to the case in question. Revenue's evaluation of the implications of the judgment will be finalised following the conclusion of the appeal process in this case.
Revenue Commissioners Staff
Questions (126, 127)
Gerry Adams
Question:126. Deputy Gerry Adams asked the Minister for Finance if a private security company is employed at the Revenue Commissioners' offices, Millennium Centre, Dundalk; if so, when this commenced; the remit of this security company at this location; if this service had formerly been provided by staff directly employed by the Revenue Commissioners; and if he will make a statement on the matter. [3970/17]
View answerGerry Adams
Question:127. Deputy Gerry Adams asked the Minister for Finance if officers of the Revenue Commissioners in the Millennium Centre, Dundalk, are permitted to accept documents from the public; if not, if members of the public are required to supply their documents electronically; and if he will make a statement on the matter. [3971/17]
View answerWritten answers
I propose to take Questions Nos. 126 and 127 together.
I am advised by Revenue that it does not engage the services of a private security firm at its offices at the Millennium Centre, Dundalk.
I am further advised by Revenue that hard copy documents are accepted from the public at its Dundalk office.
In line with Revenue's Statement of Strategy 2017-2019 and its Customer Engagement Strategy, Revenue is continually enhancing its on-line self-service facilities to improve Customer Service and make it easier, quicker and less costly for customers to engage with Revenue.
Departmental Meetings
Questions (128)
Michael McGrath
Question:128. Deputy Michael McGrath asked the Minister for Finance the status of discussions with the Brazilian authorities regarding their decision to designate Ireland as a tax haven; his views on whether the decision will be reversed; if further meetings with the Brazilian authorities are planned; and if he will make a statement on the matter. [4011/17]
View answerWritten answers
Ireland remains in regular communication with the Brazilian Federal Revenue Service on the inclusion of Ireland on their tax blacklist. Contact is ongoing and as I previously advised a technical delegation will be travelling to Brazil to discuss the issue with Brazilian officials. It should be noted that Brazil have not designated Ireland a tax haven. The Brazilian Federal Revenue Service have advised that they have included Ireland on a tax list of countries with favourable tax regimes because our 12.5% corporation tax rate is below 17%, a level set by Brazilian legislation. I disagree with the inclusion of Ireland on this list. The 12.5% rate is a long established and important part of our overall tax system. Focussing on the 12.5% rate ignores the existence of the 25% and 33% corporation tax rates. It also creates a misleading impression that Ireland is a low corporate tax collecting country which is inaccurate. We will continue to communicate with the Brazilian Federal Revenue Service and seek to provide clarity on our corporation tax regime.
Tax Exemptions
Questions (129)
Eamon Scanlon
Question:129. Deputy Eamon Scanlon asked the Minister for Finance if he will implement a tax break or part exemption from taxation in respect of the reimbursement of expenses for employees who have to travel from their home to work; and if he will make a statement on the matter. [4060/17]
View answerWritten answers
Section 114 of the Taxes Consolidation Act 1997 provides for a tax deduction in respect of travel expenses which an employee or office-holder is necessarily obliged to incur in the performance of the duties of the office or employment. In this regard, return travel from home to work is not an allowable expense and home may not be considered a place of work and this is a long-standing principle. However, in the context of the annual Budget and Finance Bill cycle, I will examine any proposals that the Deputy may wish to put forward.
National Treasury Management Agency Data
Questions (130)
Michael McGrath
Question:130. Deputy Michael McGrath asked the Minister for Finance the number of employees of the National Treasury Management Agency and the National Asset Management Agency who were in remuneration categories (details supplied) at the end of December 2016. [4151/17]
View answerWritten answers
The National Treasury Management Agency have supplied the following table showing the number of staff employed by the NTMA in the remuneration categories requested.
|
Agency* |
€100-€200k |
€200-€300k |
€300-€400k |
€400-€500k |
> €500k |
|
NTMA |
106 |
11 |
6 |
1 |
0 |
|
NAMA |
110 |
5 |
0 |
1 |
0 |
All NAMA and Strategic Banking Corporation of Ireland (SBCI) staff are employees of the NTMA. The table identifies the NAMA staff in each remuneration category and the staff assigned to the SBCI are identified within the NTMA numbers.
* Base salary is set out on a pro-rata basis, therefore for an individual contracted to work 80% of a week NTMA have returned the salary actually paid to that individual i.e. 80% of the full time equivalent salary. Total remuneration includes base salary and any other taxable benefits paid to employees (including performance related payments paid in 2016 in respect of 2015). Base salary does not include employer pension contributions. The public service pension related deduction is applied to NTMA employees, including NTMA employees assigned to NAMA.
NAMA Staff Data
Questions (131)
Michael McGrath
Question:131. Deputy Michael McGrath asked the Minister for Finance the amount which was paid out by NAMA in 2016 in respect of redundancy payments; the number of employees who received payments; the terms of the redundancy payments; and if he will make a statement on the matter. [4152/17]
View answerWritten answers
The information sought by the Deputy is set out in NAMA's Annual Report and Financial Statements for 2015 on page 103 (Note 10.1 - Staff costs). I am advised by NAMA that an amount of €3.6m was paid, in respect of 50 members of staff who departed under the Voluntary Redundancy Scheme, in 2016.
As set out in response to Dáil Question 116 of 14 January 2016, the redundancy element of the scheme is in keeping with established public sector norms; that is, two weeks statutory pay per year of service, capped at €600 per week, plus three additional weeks of base salary per year of service with an overall cap of two years base salary. NAMA has advised that the redundancy payments referenced in its 2015 Annual Report and Financial Statements have been made in line with these public sector norms.
NAMA has also advised that the retention portion of the scheme is being implemented in line with the stipulated parameters, which I agreed with the NAMA Chairman in March 2015, regarding the quantum of any payment under the scheme, the timing of any such payment, and employee eligibility under the scheme. The underlying objective of the scheme is to help safeguard NAMA's performance in line with an orderly wind-down plan.
NAMA Property Sales
Questions (132)
Ruth Coppinger
Question:132. Deputy Ruth Coppinger asked the Minister for Finance the number of residential properties involved in sales of properties and loans by NAMA to vulture funds and REITs each year since 2010, in tabular form. [4324/17]
View answerWritten answers
As the Deputy has used a pejorative and undefinable term for potential purchasers, and due to the fact that providing the identity of specific purchasers would be commercially sensitive, my reply is based on all sales irrespective of purchaser.
I am advised that, in its capacity as a secured lender, NAMA has approved the sale of 14,246 residential properties by its debtors and receivers. This includes 4,708 new houses and apartments, which were funded by NAMA, in the three years to end-2016.
NAMA also advises that it has sold loans secured by 6,195 residential properties. In the case of loan sales, the underlying property is not sold. The property remains in the ownership and management of the original owner or, in the case of enforcement, the appointed insolvency practitioner.
The breakdown sought by the Deputy is outlined in the following table.
Residential Unit Sales by Year
|
Year |
Asset Sales number of residential units sold by debtors and receivers |
Loan Sales number of residential units securing loan portfolios sold by NAMA |
|
2010 |
242 |
_ |
|
2011 |
597 |
_ |
|
2012 |
701 |
8 |
|
2013 |
1,202 |
141 |
|
2014 |
3,387 |
1,079 |
|
2015 |
4,734 |
3,195 |
|
2016 |
3,383 |
1,772 |
|
Total |
14,246 |
6,195 |
I am advised that a number of multi-unit portfolio sales are included in the above, namely; the Orange portfolio, Rockbrook, the Plum portfolio, Tallaght Cross West and St Edmunds. NAMA advise that properties which were sold as part of these portfolios were typically already tenanted and vacant possession was not sought prior to the sales. Such portfolios are typically acquired by investors seeking long-term rental streams and, therefore, existing tenancy arrangements tend not to be affected by such sales.
NAMA Property Sales
Questions (133)
Ruth Coppinger
Question:133. Deputy Ruth Coppinger asked the Minister for Finance if he will provide a list of apartment blocks involved in sales of properties and loans by NAMA to vulture funds and REITs. [4325/17]
View answerWritten answers
As the Deputy has used a pejorative and undefinable term for purchasers, and due to the fact that identifying properties associated with individual purchasers would be commercially sensitive, my reply is based on all sales irrespective of purchaser.
I am advised that NAMA is prohibited by law from disclosing confidential debtor information, including information on assets owned by debtors, without debtors' consent. It is not possible to identify particular assets which secure NAMA loans as to do so would identify the owners as NAMA debtors and NAMA is precluded from doing so by the NAMA Act 2009 and by the requirements of banking confidentiality.
Accordingly, the information in the following table is confined to large portfolio sales of residential properties which were launched by NAMA and for which the debtors have already given their consent to public disclosure of the assets concerned.
I am advised that almost all of the apartments in the various developments were let to tenants at the time of sale completion and that existing tenants were unaffected by the sales.
|
Portfolio name |
Assets |
|
Orange |
Charlestown, Dublin 11 |
|
|
Lansdowne Gate, Dublin 12 |
|
|
Beacon South Quarter, Dublin 18 |
|
|
Baker's Yard, Dublin 1 |
|
|
|
|
Rockbrook |
Rockbrook Estate, Dublin 18 |
|
|
|
|
Plum |
Northern Cross, Dublin 13 |
|
|
Beechwood Court, Stillorgan, Co Dublin |
|
|
Time Place, Dublin 18 |
|
|
Lad Lane, Dublin 2 |
|
|
Carrington Park, Dublin 9 |
|
|
Heywood Court, Dublin 9 |
|
|
Waterside, Malahide, Co Dublin |
|
Tallaght Cross West |
Tallaght Cross West, Dublin 24 |
|
|
|
|
St Edmunds |
St Edmunds, Dublin 20 |
NAMA Property Leases
Questions (134)
Ruth Coppinger
Question:134. Deputy Ruth Coppinger asked the Minister for Finance the number of instances tenants of residential properties controlled by NAMA have been given notice to quit in order to achieve vacant possession. [4326/17]
View answerWritten answers
NAMA does not own property. Rather, it has acquired loans for which the properties act as security. Control of the properties rests with debtors and receivers and not with NAMA. In that regard, I am advised that information is not available on the total number of instances in which NAMA debtors and receivers have sought vacant possession in advance of residential property sales.
In its capacity as a secured lender, it is NAMA's policy that, where possible, borrowers and receivers should avoid seeking vacant possession of residential property in advance of asset sales in order to minimise disruption to people living in these homes. Tenants of such properties continue to have the benefit of existing lease terms and of the statutory protections in place in the residential rental market. In instances where NAMA debtors and receivers do seek vacant possession in advance of the sale of a residential property, they are legally obliged to act fully in accordance with the statutory rights and other protections afforded to tenants and to act within the terms of tenancy agreements.
All landlord-tenant rights are governed by multiple pieces of legislation, mainly under the aegis of the Minister for the Housing, Planning, Community and Local Government. This legislation attempts to balance and protect the rights of the tenant and the landlord and sets out the specific limited circumstances under which landlords are able to seek vacant possession of properties. These restrictions apply to all landlords regardless of who owns their loans.
Under Pillar 4 of Rebuilding Ireland, the Planning and Development (Housing) and Residential Tenancies Act 2016 amending Section 35a of the Residential Tenancies Act 2004 recently was enacted as part of the Government's rental strategy. The effect of the provision is to require that tenancies are protected where a landlord or investor wishes to sell more than 10 properties in a single development.
These measures are accompanied by a number of other actions to enhance the Residential Tenancies Board's enforcement and dispute resolution powers. These include faster processing of determination orders, the reduction in period for appeal to Tribunals, and the use of one person Tribunals. Tenants and landlords alike will therefore see a number of improvements as a result of these legislative changes.
Any tenant who believes that their legal rights are being compromised should bring their concerns to the Residential Tenancies Board which has the power to ensure their rights are upheld. This includes cases where a tenant believes that a termination notice has not been properly served.
NAMA Property Sales
Questions (135)
Ruth Coppinger
Question:135. Deputy Ruth Coppinger asked the Minister for Finance if he will provide a list of residential development land in the greater Dublin area, Cork city, Galway city and Limerick city involved in sales of properties and loans by NAMA to vulture funds. [4327/17]
View answerWritten answers
As the Deputy has used a pejorative and undefinable term for purchasers, and due to the fact that providing the identity of specific purchasers would be commercially sensitive, my reply is based on all sales irrespective of purchaser.
In addition, NAMA is prohibited by law from disclosing confidential debtor information, including information on assets owned by debtors, without debtors' consent. It is not possible to identify particular assets which secure NAMA loans as to do so would identify the owners as NAMA debtors and NAMA is precluded from doing so by the NAMA Act 2009 and by the requirements of banking confidentiality.
Accordingly, the following table provides a breakdown, by county, of residential development land which has been sold by NAMA debtors or receivers, or which has secured loans sold by NAMA. The information summarises the sales position as of end-December 2016.
|
County |
Sum of Area (Hectares) |
|
Carlow |
23 |
|
Clare |
5 |
|
Cork |
618 |
|
Dublin |
445 |
|
Galway |
78 |
|
Kerry |
6 |
|
Kildare |
150 |
|
Kilkenny |
29 |
|
Laois |
30 |
|
Leitrim |
4 |
|
Limerick |
108 |
|
Louth |
73 |
|
Meath |
377 |
|
Offaly |
21 |
|
Sligo |
4 |
|
Tipperary |
18 |
|
Waterford |
135 |
|
Westmeath |
13 |
|
Wexford |
21 |
|
Wicklow |
143 |
|
Grand Total |
2,301 |
I am advised that not all of this sold land was commercially viable to develop for residential or commercial use at the point of sale. NAMA advise that some of the lands were not zoned, some had been dezoned by local authorities and many had a mixture of zonings including amenity, commercial, retail, community, educational and green space. I am further advised that, in some cases, development of the sold lands remains unviable for commercial, planning and infrastructural reasons.
Information regarding the availability of residential zoned land is available on the Department of Housing and local authority websites and is based on a national survey of all lands zoned for residential or primarily residential development in statutory local authority development plans and local area plans across Ireland to determine the location and quantity of lands that may be regarded as being undeveloped and available for primarily residential development purposes. See http://www.housing.gov.ie/planning/residential-land-availability/residential-land-availability-survey.
More recently, the Housing Supply Taskforce for Dublin has collated data on the aggregated planning permissions and planning applications across the four Dublin local authorities which they have mapped and available to view on the department of Housing website at http://www.housing.gov.ie/housing/construction-2020-strategy/dublin-housing-supply-task-force/housing-supply-coordination-task.
VAT Rate Reductions
Questions (136)
Stephen Donnelly
Question:136. Deputy Stephen S. Donnelly asked the Minister for Finance the estimated full year cost of reducing the standard rate of VAT from 23% to 20% in budget 2018. [4357/17]
View answerWritten answers
I am advised by Revenue that a Post-Budget 2017 Ready Reckoner is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/ready-reckoner.pdf.
This Ready Reckoner provides the information for calculating the estimated cost or yield to the Exchequer arising from changes to each of the different VAT rates. Estimates are presented for 2017, forecasts for 2018 will be available later in the year.
Home Renovation Incentive Scheme Data
Questions (137)
Mattie McGrath
Question:137. Deputy Mattie McGrath asked the Minister for Finance the number of properties which were registered for the home renovation incentive scheme in County Tipperary in 2015 and 2016; the total monetary value of these works; and if he will make a statement on the matter. [4442/17]
View answerWritten answers
I am advised by Revenue that the 'Home Renovation Incentive (HRI) Statistics 2013 - 2016' statistical report is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/hri-stats.html. In particular, Table 6 from this report provides a breakdown of the number of individual properties that have been registered with the HRI scheme listed by Local Authority area, as well as the total number of works and their estimated value by year. This table will be updated in due course to reflect more recent data as it becomes available.
Insurance Costs
Questions (138)
Mattie McGrath
Question:138. Deputy Mattie McGrath asked the Minister for Finance the measures he proposes to implement to deal with the escalating costs of home insurance premiums; and if he will make a statement on the matter. [4443/17]
View answerWritten answers
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.
The Deputy will note that, according to the official data from the Central Statistics Office, the cost of insurance connected with dwellings has remained largely stable since December 2011. It has increased and decreased at various times and fluctuated by less than 15% in total from its lowest to highest levels during those five years. It is currently 5.7% higher than it had been at the end of 2011. Comparably the cost of motor insurance is 51.7% higher than it had been in December 2011, and at times early last year had been as much as 60% higher. On the basis of the official data, I do not see the need to look at the issue of the cost of home insurance at this point in time within the context of the Cost of Insurance Working Group's ongoing review of the insurance sector. Nevertheless, my Department will monitor the cost of home insurance as part of the its ongoing policy work in the insurance sector.
Finally, the Cost of Insurance Working Group's report, which focusses on the cost of motor insurance, was published on 10 January 2017 and its implementation is already underway. Many of the recommendations and action points contained in that Report will have a positive impact on wider insurance sector, including the home insurance sector, through the creation of an enhanced claims environment, improved consumer protection and increased competitiveness.
Insurance Costs
Questions (139)
Pearse Doherty
Question:139. Deputy Pearse Doherty asked the Minister for Finance the policy and legislative steps he is taking to ensure the cost of insurance is not prohibitively expensive for businesses; and if he will make a statement on the matter. [4514/17]
View answerWritten answers
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 recognise that the State can play a role in creating a more stable environment within which insurance companies can operate. Consequently, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. The Cost of Insurance Working Group focussed on motor insurance in the first phase of its work, due to the fact that this had the widest impact on society and also because motor insurance premium increases had been the largest. The Report on the Cost of Motor Insurance was finalised in December 2016, approved by Cabinet on 10 January 2017, and subsequently published. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation.
The next phase of the Working Group's work will commence shortly and will focus on the cost of insurance for businesses. Minister of State Murphy will make an announcement providing more detail on this in due course.
Finally, it should be noted that many of the recommendations and action points contained in the Report on Motor Insurance will have a positive impact on the wider insurance sector, including the business insurance sector, through the creation of an enhanced claims environment, availability of data, and increased competitiveness.