Written Answers Nos. 117-141
117. Deputy Michael Fitzmaurice asked the Tánaiste and Minister for Justice and Equality to set out in tabular form the public funding supplied to trade unions and representative bodies in 2015 and 2016 from her Department; and if she will make a statement on the matter. [9100/17]
View answerI can inform the Deputy that no public funding was provided from my Department's Vote to trade unions or representative bodies during the period referred to by him.
118. Deputy Colm Brophy asked the Minister for Finance to outline the financial supports available to assist a wheelchair user to purchase a wheelchair accessible vehicle; and if he will make a statement on the matter. [8231/17]
View answerThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT, up to a certain limit, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant used by members of the Scheme, the Scheme represented a cost of €65.1 million to the Exchequer in 2016. These figures do not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I am informed by the Minister for Health that due to concerns following on from reports of the Ombudsman in 2011 and 2012 regarding the legal status of both the Mobility Allowance and Motorised Transport Grant Scheme in the context of the Equal Status Acts, the Government decided to close both schemes in February 2013. The Government is aware of the continuing needs of people with a disability who rely on individual payments which support choice and independence. In that regard, monthly payments of €208.50 have continued to be made by the Health Service Executive to 4,700 people who were in receipt of the Mobility Allowance at the time the scheme closed.
The Government decided that the detailed preparatory work required for a new Transport Support Scheme and associated statutory provisions should be progressed by the Minister for Health. The Minister for Health has informed me that work on the policy proposals in this regard is at an advanced stage and he anticipates that this will be brought to Government shortly.
119. Deputy Charlie McConalogue asked the Minister for Finance to outline his plans to include first-time buyers that are buying second-hand homes in the help-to-buy scheme; if not, the reasons for same; and if he will make a statement on the matter. [8346/17]
View answerThe Government is conscious that there is currently a shortage of housing and of the particular challenges faced by first-time buyers in obtaining the deposit required to purchase a home, given the Central Bank's macro prudential rules. As the Deputy will be aware, the 'Help to Buy' initiative was initially announced on 19 July 2016 as part of 'Rebuilding Ireland: Action Plan for Housing and Homelessness'. This plan contains a significant volume of responses to the current crisis, of which the Help to Buy initiative is one.
It should be noted that the scheme is not a broad based relief available for the purchase of any home by any buyer. It is instead a targeted response that is aimed at first-time buyers, buying (or building) new residences. This targeting is designed to help encourage the building of new homes, thereby increasing supply, by turning notional demand into real demand. By restricting this initiative solely to new dwellings and new self builds, it is anticipated that the resulting increase in demand for affordable new build homes should encourage the construction industry to provide for an additional supply of such properties.
If the initiative was also available for second hand properties, it would have little or no effect on the provision of additional supply, and thus the scheme would consist primarily of deadweight in terms of incentive effect. As the Deputy will be aware, an increase in the supply of new housing is fundamental to resolving the current crisis.
120. Deputy Pearse Doherty asked the Minister for Finance to set down the number of applications to date for the help-to-buy scheme as announced in budget 2017; and if he will make a statement on the matter. [8086/17]
View answer121. Deputy Pearse Doherty asked the Minister for Finance to set out the number of applications for the help-to-buy scheme that have been deemed valid to date; and if he will make a statement on the matter. [8087/17]
View answer122. Deputy Pearse Doherty asked the Minister for Finance to set out in tabular form the number of successful or pending applications for the help-to-buy scheme in categories (details supplied); and the total potential cost of the scheme in each category. [8088/17]
View answer123. Deputy Pearse Doherty asked the Minister for Finance to set out the total anticipated cost of the help-to-buy scheme based on the applications to date; and if he will make a statement on the matter. [8089/17]
View answerI propose to take Questions Nos. 120 to 123, inclusive, together.
The Deputy may be aware that a two-stage process is employed for the Help to Buy incentive, under which individuals submit an application for the incentive to receive an indication of the level of tax relief that may be available to them, and subsequently submit a claim for a tax refund. This refund is generally payable to the contractor at the deposit stage in the case of a home purchase, or in the case of a self-build, is paid to the applicant when they have drawn down the first tranche of their mortgage.
I am advised by Revenue that the number of Help to Buy (HTB) applications received up to Friday 17 February 2017 was:
|
No. of Applications |
Successful applications |
*Pending |
|
2,951 |
872 |
2,079 |
*Pending means that the applicants either have to file an outstanding return or address a compliance issue, the application is to be reviewed by a Revenue caseworker, or the applicant needs to finalise his or her application. The Revenue Commissioners are encouraging prospective applicants to file any necessary returns and resolve any outstanding issues before they make their HTB application. Applicants can, of course, also use Revenue's website to carry out other requests, for example to file a Form 12 or apply for tax clearance. PAYE taxpayers can use myAccount and the bulk of the applications so far have been submitted via myAccount. Business taxpayers can use ROS Revenue's Online Service.
Information about the loan-to-value ratios is not available when individuals submit their applications, as such figures are not usually finalised at that stage of the process. However, this information is necessary for successful applicants to finalise their claims. I am advised that the categorisation of successful claims by the requested loan-to-value ratios as of 17 February 2017 was:
|
Loan-to-value (LTV) |
90% |
85% to 90% |
80% to 85% |
Below 80% (and above 70% minimum LTV) |
|
Total (307) |
84 |
119 |
57 |
47 |
The number of applications and claims for the incentive are too small to materially affect the previously estimated cost of the scheme. In this regard, the Deputy may wish to note that at Budget time, it was estimated that the Help to Buy incentive would cost €40 m per annum, but €50 m in 2017 due to the backdating of the relief in respect of properties which became eligible for the scheme since 19 July 2016.
124. Deputy Maureen O'Sullivan asked the Minister for Finance to set down the savings and yield to the Exchequer from standardising at 20% the rate at which all persons receive tax relief on contributions to occupational pension schemes, RACs and PRSAs. [8090/17]
View answer125. Deputy Maureen O'Sullivan asked the Minister for Finance to set down the savings and yield to the Exchequer from reducing the earnings cap for pension tax relief on contributions to occupational pension schemes, RACs and PRSAs from €115,000 per annum to €75,000. [8091/17]
View answerI propose to take Questions Nos. 124 and 125 together.
I am advised by Revenue that a post-Budget 2017 Ready Reckoner is available on the Revenue Statistics webpage at the link:
http://www.revenue.ie/en/about/statistics/index.html.
In relation to the Deputy's Questions, page 11 of this Ready Reckoner shows the estimated cost or yield from changing the ceiling on the annual earnings limit for determining maximum allowable contributions for pension purposes and also the cost of reducing the marginal effective rate of such pension reliefs.
126. Deputy Barry Cowen asked the Minister for Finance to outline the spending commitments or paying down of debt that the Government has entered into with regard to the profits arising from the winding down of NAMA; and if he will make a statement on the matter. [8107/17]
View answerI would like to refer the Deputy to Parliamentary Questions Nos. 122 and 123 of 24 May 2016 which also address these questions.
Currently NAMA expects to redeem 100% of its guaranteed senior debt by the end of 2017 and expects to redeem its subordinated debt in March 2020. NAMA will focus on completing its ongoing deleveraging, its Dublin Docklands SDZ and residential funding programmes in the interim period to 2020. NAMA's most recent annual statement which provides further insight into the Agency's expectations regarding these activities was laid before the Dail on 2 November 2016 and is also available on NAMA's website. As the Deputy will be aware, it is through the successful completion of these objectives that NAMA currently projects a surplus in the region of €2.3 bn to be returned to the State once it completes it work.
As per section 60(2) of the NAMA Act 2009, NAMA may use surplus funds to redeem and cancel its debt. Surplus funds may only be returned to the Central Fund once NAMA's debt has been redeemed in full.
Any NAMA surplus paid into the Exchequer will be recorded in line with Eurostat rules and would likely be deemed a once-off capital receipt under non-tax revenue in the Financial Statements of the Exchequer.
It will be a decision for the Government as to how any surplus returned by NAMA will be utilised.
It has always been the Government's intention to use such receipts from the resolution of the financial sector crisis to pay down our debt and help reduce our debt servicing costs. Given the uncertainty around the specific timing of or the amount that will be realised, such receipts have not been included our debt forecasts. Debt reduction underpinned by our lower national debt target of 45 per cent of GDP, will increase the resilience of the public finances to deal with any potential shocks which may emerge.
127. Deputy Barry Cowen asked the Minister for Finance to outline the spending commitments or paying down of debt the Government has entered into with regard to the profits arising from the partial sale of the State's stake in a bank (details supplied); and if he will make a statement on the matter. [8108/17]
View answerIn the first instance it is important to note that these type of transactions, i.e. the sale of shares in our banking investments, do not result in a beneficial impact to the General Government Balance (GGB) under ESA 2010 rules. This is due to the fact that they are classified as a 'financial transaction' or essentially the exchange of one form of asset (shares, equities, loans) for another (cash). Consequently, the sale of any shareholding in any of the banks would not count as general government revenue. Therefore, there is not generally any increased capacity to spend as a result of the sale of shares without affecting the general government balance.
As I have previously stated, the re-capitalisation of our banking sector has added to the stock of general government debt and in turn increased our annual debt servicing costs. It has always been the Government's intention to use receipts from the disposal of the State's banking investments to pay down this debt and help reduce the debt servicing costs. Given the uncertainty around the timing of or the monies realised from any disposal, this has not been included our debt forecasts. Debt reduction underpinned by our lower national debt target of 45 per cent of GDP, will increase the resilience of the public finances to deal with any potential shocks which may emerge.
128. Deputy Catherine Murphy asked the Minister for Finance to set down in tabular form the amount of funding granted to Horse Racing Ireland directly from betting receipts for the past three years; and if he will make a statement on the matter. [8120/17]
View answer140. Deputy Catherine Murphy asked the Minister for Finance to set down in tabular form the amount of betting intermediary duty collected from bets made from track-side bookmakers in the past three years; and if he will make a statement on the matter. [8234/17]
View answer141. Deputy Catherine Murphy asked the Minister for Finance to set down in tabular form the amount of betting intermediary duty collected from bets made instore and online with bookmakers in the past three years; and if he will make a statement on the matter. [8235/17]
View answerI propose to take Questions Nos. 128, 140 and 141 together.
On course bookmakers are exempt from betting duty on bets accepted during and at a race meeting under section 68(1)(a) of the Finance Act 2002. Accordingly, there were no receipts from this sector. However, this exemption does not apply to bets entered into by any means of telecommunications, such as by telephone or online.
Annual statistics from Betting Duty are published on the Revenue statistics page:
http://www.revenue.ie/en/about/statistics/betting-duty-receipts.html.
The 2016 receipts from Betting Duty on in-store bets (traditional betting), Remote Betting Duty (online) and Remote Betting Intermediary Duty are as follows. It should be noted that these figures are provisional in nature and may be subject to revisions.
|
- |
Traditional Betting |
Remote Betting |
Betting Intermediary Commissions |
Total |
|
€m |
€m |
€m |
€m |
|
|
2016 (Prov.) |
28.1 |
20.7 |
1.9 |
50.7 |
In relation to particular taxes being earmarked for particular spending, I would inform the Deputy that hypothecation is not a feature of the Irish tax system in general and funding provided to Horse Racing Ireland is a matter for the Minister for Agriculture, Food and the Marine in the first instance.
129. Deputy Brendan Griffin asked the Minister for Finance if additional access will be given to persons who have built up funds through voluntary contributions towards their occupational pensions; and if he will make a statement on the matter. [8155/17]
View answerI take it that the Deputy is referring to access to Additional Voluntary Contributions (AVCs) prior to retirement.
As outlined in my response to Parliamentary Question No. 165 of 27 September 2016 (PQ 26673/16), Finance Act 2013 introduced Section 782A of the Taxes Consolidation Act 1997 which provided members of occupational pension schemes with a once-off opportunity to access up to 30% of their AVCs prior to retirement. The option was available for a three year period from 27 March 2013, the date that Finance Act 2013 was passed into law, and came to an end on 26 March 2016.
There are a number of reasons why pre-retirement access to pension savings is not permitted on a general basis, the principal one being that these arrangements (and the associated tax reliefs on contributions and pension fund growth) are designed to be long term savings vehicles based on the principle that the benefits will be "locked away" to help fund an adequate income in retirement.
The pre-retirement access to a portion of AVCs which I introduced in Budget and Finance Act 2013 was allowed on a tax-neutral basis. The contributions were tax-relieved at the individual's marginal rate on the way in and were taxed at the individual's marginal rate on withdrawal. This was a measure designed to enable rather than incentivise individuals to access part of their pension savings beyond their regular or compulsory pension contributions.
I am informed by the Revenue Commissioners that the most up to date figures for the AVC access scheme are that 18,682 individuals availed of the early access facility over the 3 year period to the amount of just over €202 million gross in drawdowns, on which tax of some €79 million was paid (the exact figure is €79,029,232 million).
It is important that individuals continue to provide for their retirement and, it would appear, most individuals with AVCs decided to preserve their AVC pension savings. I have no plans to reintroduce the measure along the lines suggested in the question.
130. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 93 of 2 February 2017 if he will provide the definition of "consultation" in this case; if it involves feedback or instruction from him or if it only involves communication to him informing him of the sale; and if he will make a statement on the matter. [8170/17]
View answerAs the Deputy is aware, the relationship between the Minister for Finance and the banks in which the State has a shareholding are governed by Relationship Frameworks. Under the terms of these Frameworks matters are deemed to be 'material' and require the bank to bring the matter to my attention, for either consultation or, in certain circumstances, for consent.
The Relationship Frameworks set out in detail the procedure applied for bringing a Consent or Consultation matter to my attention. For example, in the case of the Relationship Framework with AIB, this procedure is detailed in Appendix IV.
Article 6 of the AIB Relationship Framework Agreements also states: "The views of the Minister and Department are expected to be appropriately considered by the Bank as part of any consultation process under this Relationship Framework. However, the Board and management team have full responsibility and authority for determining the Bank's strategy and commercial policies."
The Relationship Frameworks are available at:
AIB: http://finance.gov.ie/sites/default/files/Allied-Irish-Banks1.pdf
Bank of Ireland: http://finance.gov.ie/sites/default/files/Bank-of-Ireland1.pdf
Permanent TSB: http://www.finance.gov.ie/sites/default/files/Relationship%20Frameworks%20for%20the%20Irish%20Banks%20Irish%20Life%20and%20Permanent.pdf.
131. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 93 of 2 February 2017 if he expects to be consulted if the sale by a bank of certain non-performing loan books were divided in such a way that the individual proceeds would be below €100 million but taken together would be equal to or exceeding €100 million; and if he will make a statement on the matter. [8171/17]
View answerAs the Deputy is aware, the relationship between the Minister for Finance and the banks in which the State has a Shareholding are governed by Relationship Frameworks. Under the terms of these Frameworks matters are deemed to be 'material' and require the bank to bring the matter to my attention.
As I have indicated previously to the Deputy, the Relationship Framework with AIB sets out the criteria for determining which matters require Ministerial consultation which include 'material' matters and states that a matter should be deemed 'material' if "it is an acquisition, investment or disposal other than in the ordinary course of business and the total purchase price, investment or proceeds is likely to exceed €100 million". Therefore if the bank decided to sell a loan book with a value over €100 m then I, as Minister, would need to be consulted. If the value is less than €100 m a formal consultation would not be required.
As you know officials in my department have regular engagement with the banks in which the State has a shareholding and also have access to a range of reports and financial information. It is through this engagement that my officials ensure that all the banks comply with their obligations under the various State agreements and Relationship Frameworks.
132. Deputy Michael McGrath asked the Minister for Finance whether a bank (details supplied) has expressed its intention to sell on performing loans; and if he will make a statement on the matter. [8172/17]
View answerI assume that the Deputy is referring to the sale of non-performing loans. I can confirm that I have not received a consultation request with regard to a material disposal of loans, as would be required under the terms of the Relationship Framework with the bank concerned. However my officials have informed me that the bank concerned is considering such a process though I understand that there are no PDH (private dwelling home) mortgages involved. For the avoidance of doubt, neither have I received any consultation requests concerning the sale of performing loans from the bank concerned.
133. Deputy Michael McGrath asked the Minister for Finance if any staff members of the National Treasury Management Agency or National Asset Management Agency are to receive a bonus payment for 2016; if so, the total amount being paid out in bonuses by the NTMA in respect of 2016; the number of staff that are to receive a bonus; the highest individual amount paid out; and if he will make a statement on the matter. [8174/17]
View answerI am informed by the National Treasury Management Agency (NTMA) that no performance related payments have been made to date by the NTMA in respect of financial year 2016. Any performance related payments made in respect of financial year 2016 will be published in the NTMA's 2016 Annual Report.
Performance related payments made in 2016 in respect of financial year 2015 totalled €492,500 and were paid to 60 people. These payments were published in the NTMA's 2015 Annual Report. The highest individual payment was €20,000.
I am also advised that no such performance related payments were made to any staff assigned to the National Asset Management Agency (NAMA) in respect of financial year 2015.
134. Deputy Michael McGrath asked the Minister for Finance to outline the amount paid by the National Treasury Management Agency and the National Asset Management Agency for public relations in 2016; the amount paid to each firm; the rates that apply; when the main public relations contracts for the two agencies are up for renewal; his views on whether the contract provides value for money for the two agencies; and if he will make a statement on the matter. [8175/17]
View answerI am informed by the National Treasury Management Agency (NTMA) that its communications team is supported by an external service provider, Gordon MRM. This service, which includes out-of-hours contacts for the media, provides support across all of the NTMA's business areas:
- Funding and Debt Management;
- Ireland Strategic Investment Fund (ISIF);
- National Development Finance Agency (NDFA);
- State Claims Agency (SCA); and
- NewERA.
It also provides support to the National Asset Management Agency (NAMA).
In September 2012 the NTMA, launched a public procurement process and tendered for the provision of these services. Following the tender evaluation process the NTMA awarded a contract to Gordon MRM. The current contract, which commenced in January 2013, is based on a fixed fee. Rates do not apply. The contract was for a three year period with the option to extend by two years. The contract was extended by two years and is up for renewal in January 2018.
NAMA draws on the NTMA's shared services in a number of areas including its outsourced press function. NAMA reimburses the NTMA in respect of the costs of these services attributable to NAMA.
The overall amount paid for PR services by the NTMA and all of its associated business areas in 2016 (ex VAT) was €151,995 (of which €79,995 was charged to NAMA).
135. Deputy Noel Rock asked the Minister for Finance to set down the total amount of revenue received by the State in 2016 through the entertainment industry; and if he will make a statement on the matter. [8184/17]
View answer136. Deputy Noel Rock asked the Minister for Finance to set down the total amount of revenue received by the State in 2016 through domestic artists in the entertainment industry; and if he will make a statement on the matter. [8185/17]
View answerI propose to take Questions Nos. 135 and 136 together.
I am advised by Revenue that the available information is in respect of net tax receipts from entertainment activities using the sectorial identifier on the tax records called "NACE code" (the current version of which is referred to as NACE Rev.2), an internationally recognised economic activity code system.
The receipts shown in the following table relate to the NACE sector "Arts, Entertainment and Recreation", which includes "Creative, arts and entertainment activities". This would include tax in respect of all activities on record associated with these taxpayers.
|
- |
VAT |
PAYE* |
Income Tax** |
Corporation Tax |
Capital Gains Tax |
Total |
|
|
€m |
€m |
€m |
€m |
€m |
€m |
|
2016 |
18 |
13 |
34.6 |
3 |
3 |
71.6 |
* PAYE includes PAYE Income Tax and PAYE USC.
** Self-assessed Income Tax cases and includes Income Tax, Non-PAYE USC and PRSI.
I am further advised that it is not possible to separately identify domestic artists based on Revenue records.
137. Deputy Noel Rock asked the Minister for Finance if his attention has been drawn to the study by a company (details supplied) which reported that nearly half of the office space leased in Dublin during the last quarter of 2016 has not been built yet; the actions being taken by his Department to tackle the scarcity of new office space in Dublin; and if he will make a statement on the matter. [8187/17]
View answerThe recent growth in the demand for office space is a reflection of the recovery in the economy and the sustained growth in overall employment. According to the Savills report referenced by the Deputy, the take-up of office space exceeded 200,000 sq.m for the third successive year in 2016. Given the sustained level of demand and the increase in prime office rents, the construction of commercial office space has significantly picked up following a near cessation in activity over 2011 to 2015. Approximately 388,000 sq.m of office space is currently under construction, equivalent to 9 per cent of the stock of office space in Dublin. According to CBRE, approximately 77,000 sq.m of office space was constructed in 2016 alone. Together with a strong granted planning pipeline, this should help to address the current scarcity of office space, particularly in the Dublin region.
The proportion of pre-let office space as a share of overall lettings accelerated significantly in the second half of 2016, a trend which is consistent with two characteristics of our office market: (1) the pent-up demand resulting from a lack of development during crisis years; and (2) the increased discipline in financing construction and development reflecting lessons learned through the financial crisis.
Regarding pent-up demand from a lack of development during crisis years, it is well understood that there was no new development nor demand for such development - during Ireland's financial crisis years, which were marked by low property prices and high vacancy levels. The success of our economic recovery has brought with it an increased demand for office space. It is the nature of property markets that construction typically lags demand due to the time needed to plan and develop a building once the demand for that building has been identified. In the meantime, price and vacancy levels absorb the impact of such increases in demand. These dynamics are evident in the report which notes the current low vacancy rate in prime office space as reflecting the extent of pent-up demand for space and the construction lag. As an open economy, it is in our interest to minimise the construction lag for buildings for which there is proven demand so that we can prevent excessive pressures from building up within the market's price and vacancy response. To this end, the Government has identified a number of initiatives in the Rebuilding Ireland Action Plan which seek to improve the market's ability to respond to demand more quickly both in the commercial and the residential markets.
Turning to the increased discipline in our financing markets, I understand that pre-letting agreements are increasingly becoming a characteristic of office development activity. Securing a pre-let for a development significantly reduces the risk associated with that development, which increases the availability of senior debt finance, significantly reducing the financing costs of the development. One of the factors that contributed to the collapse of the property market and the wider economic crisis was the inappropriate use of debt financing for speculative development. We have learned that only development with proven demand should attract significant levels of debt finance. It is appropriate that these risks of speculative development are not financed by a predominance of senior bank debt, but rather by equity investment, more appropriate for such speculation. As the market adjusts to equilibrium, the use of pre-lets to demonstrate proven demand is likely to be a permanent feature of our market which will help to unlock continued sources of funding.
It is this dynamic, driven by the proper risk-based financing of development, that brings discipline to our development market. Requiring that a high proportion of a building be pre-let helps to curb the risks of speculative development, encourages sustainable lending practices in the commercial real estate market and allows funding providers to manage risk appropriately.
I am encouraged that these market metrics are being captured, analysed and discussed. I wish to assure the Deputy that my Department will continue to monitor these and other developments in the commercial real estate market.
138. Deputy Noel Rock asked the Minister for Finance if he will be monitoring proposed regulations in the UK on payments to bank executives; if he will introduce similar measures after reports showed that 26 bankers received €50 million in salaries and bonuses in 2015; and if he will make a statement on the matter. [8189/17]
View answerThe Capital Requirements Directive IV (CRD IV), has introduced a European wide framework governing remuneration for bank executives. The European framework on remuneration applies to all financial institutions subject to CRD IV, which I as Minister for Finance am responsible for implementing. The disclosure of the bonuses paid in Ireland to relevant individuals in 2015 is part of this new framework, as there is a requirement for the European Banking Authority to publish aggregated data on high earners earning €1 m or more per financial year.
Along with increased transparency requirements, CRD IV introduced a number of other changes to the remuneration framework for financial institutions, such as short-term targets being the focus of institutions, as a response to the remuneration policies implemented for staff resulting in significant risk taking.
The framework includes a number of criteria to prevent a return to the excesses of the past. These include requirements on individuals within a relevant entity whose professional activities have a material impact on their risk profile, known as 'material risk takers'. These material risk takers include senior management, risk takers, staff engaged in control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers.
The remuneration paid to these material risk takers must consist of the following structure (which will also apply to the 26 individuals reference by the deputy):
- a substantial portion, and in any event at least 50%, of any variable remuneration should consist of equity-linked or other non-cash instruments;
- a substantial portion of the variable remuneration component, and in any event at least 40% to 60% (the latter in the case of a variable remuneration component of "a particularly high amount") should be deferred over a period of not less than three to five years;
- the variable component of the total remuneration shall not exceed 100% of the fixed component of the total remuneration of material risk takers;
- shareholders, owners or members of the institution, acting by a qualified majority can approve a higher maximum level of the variable component provided that this level does not exceed 200% of the fixed component of the total remuneration; and
- the relevant competent authority in Ireland, the Central Bank of Ireland are to be informed of recommendations to shareholders and of the result of any shareholder vote, which shall not conflict with institutions' obligations to maintain a sound capital base.
The Green Paper on Corporate Governance Reform issued by the UK Government in November last year is considering a number of options for updating the UK's corporate governance framework which includes examining executive pay, measures to increase connection between company boards and connected stakeholders and the extension of governance requirements that currently only apply to listed companies to privately held entities. I note that this Green Paper applies to the governance framework of the listed and unlisted companies in the UK. In the case of Ireland the relevant Department in this area is the Department of Jobs, Enterprise and Innovation.
139. Deputy Dara Calleary asked the Minister for Finance if his attention has been drawn to the fact that insurance companies are discriminating against certain professions (details supplied) in refusing to insure them; his plans to tackle these issues; and if he will make a statement on the matter. [8233/17]
View answerAs 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. Consequently, I am not in a position to direct insurance companies to provide cover to particular categories of individuals such as people employed in the Arts or certain Sportspeople.
As the question is not clear as to which forms of insurance are being refused, my officials sought to clarify the matter, but were unable to get a response from your Office. Consequently the assumption has been made that you are referring to motor insurance due to fact that it is a very topical issue and has been the subject of a recent review by my Department.
Consequently, you should be aware that in making their individual decisions on whether to offer motor cover and what terms to apply, insurers use a combination of rating factors in making their individual decisions. Theses factors can include the age of the driver, the type and age of car, the claims record, driving experience and penalty points of the driver, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience. It should be noted that difficulties in obtaining motor insurance with regard to the above mentioned professions has not been brought to the attention of officials in my Department to date.
Finally, Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. In the event that a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820 , quoting the Declined Cases Agreement.
