Written Replies Nos. 216 to 236
217. Deputy Brendan Smith asked the Minister for Finance if his attention has been drawn to the serious concerns of the hospitality sector in relation to the increasing costs of insurance; the measures he proposes to implement to reduce such insurance premiums; and if he will make a statement on the matter. [13514/17]
View answerConcerns relating to increasing costs of insurance in the hospitality sector have been brought to my attention. However, neither I, nor the Central Bank can directly influence insurance pricing 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. It should be noted that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.
However, it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance. Accordingly, I established the Cost of Insurance Working Group and appointed Minister of State Eoghan Murphy as Chair. This Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short, medium and long-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. The initial focus of the Working Group was the issue of rising motor insurance premiums and the Report on the Cost of Motor Insurance was published in January 2017.
The Working Group is now in its second phase which is concentrating on the Employer Liability and Public Liability insurance sectors. The terms of reference for this work have been agreed and it is proposed that the following core areas will be considered:
- Overview of the Employer Liability and Public Liability insurance sectors
- Impact of the cost of insurance on the competitiveness of particular business sectors
- Impact of health and safety issues on the cost of insurance
- Other market issues
In addition, the Working Group will build upon previous work done as it relates to Employer Liability and Public Liability insurance claims in examining:
- Personal Injury data and information
- Effects of legal costs and litigation processes on insurance costs
- Current claims compensation arrangements and cost of claims
- Impact of unlawful activity on insurance sector
The Working Group is continuing to meet on a regular basis to examine issues related to Employer Liability and Public Liability insurance, including those pertinent to the hospitality sector. Indeed, as part of the current consultation process, there has already been a very informative engagement with relevant organisations within the hospitality sector such as the Licensed Vintners Association and the Vintners' Federation of Ireland. I am informed that the Working Group will also hear from the Irish Hotels Federation.
It is envisaged that the final results of the second phase will take the form of an addendum to the existing Report. As with the first phase, the aim is for all relevant bodies and stakeholders to work together in order to deliver fairer premiums for businesses without unnecessary delay.
218. Deputy Thomas Byrne asked the Minister for Finance if he will provide a copy of the rule book of every Revenue Commissioner staff pension scheme commenced in the 1970s and 1980s which would affect staff currently retiring. [13529/17]
View answer223. Deputy Thomas Byrne asked the Minister for Finance if he will provide a copy of all forms the Revenue Commissioners used in the 1970s and 1980s providing for opt in and opt out in respect of spouse and child pension provision for staff members. [13554/17]
View answer224. Deputy Thomas Byrne asked the Minister for Finance the proportion of staff members in the Revenue Commissioners that have opted out of spouse and child pension provision. [13555/17]
View answerI propose to take Questions Nos. 218, 223 and 224 together.
I am advised by Revenue that they have contacted the Deputy's office directly to provide the requested documentation in relation to questions 13529/17 and 13554/17.
The following documents were provided in response to question 13529/17:
FAQ 1 Established Civil Servants including Prison Officers Who Pay Modified Class B PRSI
FAQ 2 Established Civil Servants Including Prison Officers who Pay Class A PRSI
FAQ 3 Non-contributory Pension Scheme for Non-established State Employees
A Brief Guide to the Occupational Superannuation Scheme for Established Civil Servants
The following documents were provided in response to question 13554/17:
Forms for 1979 Non-established State Employees Contributory Widow's and Children's Pension Scheme
1981 Spouses' and Children's Pension Scheme
Revised 1984 Spouses' and Children's Pension Scheme
1986 Non-established State Employees Spouses' and Children's Pension Scheme
In reply to question 13555/17 I have been advised by the Revenue Commissioners that based on a query run against the latest payroll, 17.72% of staff members in the Revenue Commissioners have opted out of the spouse and child pension provision.
219. Deputy Eamon Scanlon asked the Minister for Finance the total vehicle registration tax to be paid on a camper van (details supplied); and if he will make a statement on the matter. [13541/17]
View answerVehicle registration tax (VRT) is charged on a motor caravan (camper van) at the rate of 13.3% of its open market selling price (OMSP). The OMSP of a used motor caravan is the price, inclusive of all taxes and duties, which, in Revenue's opinion, it might reasonably be expected to fetch on first arm's length retail sale in the State.
The OMSP will be determined by Revenue at the time the motor caravan is presented for registration. I am advised by Revenue that there is insufficient information available to provide an estimate of the VRT for the vehicle in question.
220. Deputy Michael McGrath asked the Minister for Finance the details, including the aggregate value of such transactions if individual transaction values cannot be provided, of the list of NAMA loan or asset disposals, including disposals by a receiver appointed by NAMA, since the inception of the agency where an open competitive sales process did not take place and where the disposal was made to a special purchaser, in tabular form; when NAMA's policy changed in respect of such off-market disposals; and if he will make a statement on the matter. [13542/17]
View answerAs the Deputy will be aware, NAMA does not own property, and its role in relation to property is as a secured lender. As a result, where properties and assets over which NAMA holds a charge are being sold, the sales process is managed by the property owner or by a receiver. NAMA does not manage the sales process, but NAMA guidelines require that a property is openly marketed, with the property owner or receiver appointing a sales agent to market the property and ensure that the sale is conducted in an open and transparent manner. As secured lender, NAMA's approval of the sale is required before its security can be released to complete the sale.
NAMA's Business Plan, which was published in July 2010, stated that NAMA would engage proactively with Government departments, local authorities, State agencies and other appropriate bodies in relation to their possible need for land/properties. The NAMA Board formally approved a policy in relation to open marketing exceptions in 2014 and since then all exceptions have been logged. I am advised that since January 2014, 240 exceptions to NAMA's open marketing policy have been approved and the aggregate value of these transactions to date is €1.2 billion, which is less than 6% of total disposal proceeds since January 2014. Such derogations are dependent on achieving the current market value as determined by independent market valuations.
I am further advised that NAMA Board policy in relation to exceptions provides for four exceptions to its policy of open marketing:
1. Where specific written advice (either legal or professional) has been obtained by NAMA in relation to the disposal of the asset recommending that open marketing should not be pursued for commercial or legal reasons. Such assets are offered at the appraised market value confirmed by way of independent valuation report received by NAMA.
2. Where a government or State entity has approached NAMA to purchase an asset for legitimate reasons in the public interest. Such derogations are dependent on achieving the current market value as determined by an independent valuation.
3. Where NAMA, through NARPS, acquires assets for social housing purposes from NAMA debtors or receivers for onward leasing to Approved Housing Bodies (AHBs). Such derogations are dependent on achieving the current market value as determined by an independent valuation.
4. Where the asset is the subject of a compulsory purchase order (CPO) by a State body or local authority.
Included in the first exceptions category are transactions which resulted in full redemption of par debt, transactions involving defective security and transactions involving the sale of assets where there were legal impediments to open market sales. These included cases involving existing ownership agreements and third parties with legal entitlements or pre-emption rights relating to the assets. Table 1 provides a breakdown by sub-category. NAMA's primary objective under the NAMA Act is to obtain the best achievable financial return for the State and in cases where it can be demonstrated that the best achievable price for an asset will not be achieved on the open market, derogation from NAMA's open marketing policy is sought from the appropriate delegated authority. Such assets are offered at the appraised market value confirmed by way of independent valuation report received by NAMA. The total value of transactions in this category was €795m.
The second exceptions category relates to cases where State bodies require certain property assets in the public interest. This includes the sale of sites to the Department of Education for the provision of primary and secondary schools and properties and sites sold to local authorities and to various Government departments and State agencies. This category also includes sites identified by IDA Ireland as suitable for Foreign Direct Investment. Derogations are applied in instances where the purchaser is an existing tenant or where an existing business is looking to expand into an adjoining NAMA-secured property or site. Again, such derogations are dependent on achieving the current market value as determined by an independent valuation. The total value of transactions in this second category was €242m.
The third exceptions category relates to NAMA's engagement with the Department of Housing, Planning, Community & Local Government and the Housing Agency in relation to the supply of residential properties for social housing purposes. Since the start of 2012, NAMA has identified 6,941 houses and apartments controlled by its debtors and receivers as available for social housing. Of these, 2,748 properties have been confirmed as suitable by local authorities. NAMA, through its special purpose vehicle, NARPS, purchased properties from its debtors and receivers for onward long-term leasing to local authorities or AHBs. In addition, AHBs directly purchased residential properties for social housing purposes. In total, social housing transactions valued at €149m have received derogation from NAMA's policy of open marketing. Again, such derogations are dependent on achieving the current market value as determined by independent market valuations.
The fourth exceptions category sites subject to a CPO by a local authority or other State body accounted for €9m in transactions.
TABLE 1 summarises the position since January 2014.
|
Exceptions category |
Number of exception approvals |
Value of transactions €m |
|
1. Open marketing not pursued for legal reasons or because a better return was achieved through an alternative disposal mechanism: |
||
|
a. Legal restrictions or asset defects |
45 |
429 |
|
b. PAR debt repayment/settlement agreements |
20 |
228 |
|
c. Value enhancement through merging of sites with contiguous sites owned by third parties |
20 |
117 |
|
d. Special purchasers |
41 |
21 |
|
2. State bodies acquiring property assets in the public interest |
44 |
242 |
|
3. Residential properties for social housing purposes |
65 |
149 |
|
4. Sites subject to a CPO |
5 |
9 |
|
TOTAL |
240 |
1,195 |
221. Deputy Michael Healy-Rae asked the Minister for Finance further to Parliamentary Question No. 104 of 9 March 2017, if he will address a matter (details supplied); and if he will make a statement on the matter. [13545/17]
View answerI am advised by Revenue that the fact that a particular entity is a charity does not alter their legal obligation to maintain taxpayer confidentiality in accordance with Section 851A of the Taxes Consolidation Act 1997.
The Deputy may wish to note that the Revenue Commissioners publish a list of charities that have charitable tax exempt status, which is available at the following link, http://www.revenue.ie/en/about/statistics/registrations-assessments-transactions-charitable-exemption.html, as well as a list of the bodies that qualify for the donations scheme, which is available at the following link: http://www.revenue.ie/en/about/statistics/registrations-assessments-transactions-resident-charities.html.
225. Deputy Declan Breathnach asked the Minister for Finance if his attention has been drawn to the fact that the measure introduced in the last budget to charge VAT on training and development activities is having the effect of actively discouraging businesses from offering training and development opportunities to their staff; if his attention has been further drawn to the fact that the measure has led to training courses being cancelled to the detriment of the business providing training and also the staff that would have benefitted from the training; and if he will make a statement on the matter. [13559/17]
View answerI have been advised by Revenue that the legislative provision which exempts education and vocational training from VAT was amended by the Finance Act 2015. The amendment ensures that national VAT legislation reflects recent judgements of the Court of Justice of the European Union.
The amendment provides that VAT exemption applies to providers of children's or young people's education and school or university education where it is provided by a recognised body. Exemption also continues to apply to training and development courses where the training and retraining is of a vocational nature. This means that exemption applies to training or retraining courses which prepare trainees for future employment and to training relating directly to a trade or profession given to a person in order to improve their ability to carry out their work. Where a course is offered by a business to their staff and it relates to their work, the training and development course continues to be exempt from VAT.
Revenue has consulted closely with stakeholders in the training and development sector and has prepared detailed guidance for providers. The draft guidance has been circulated to industry representatives for their views and will be published in the coming weeks. If an education or training provider has any doubt as to the taxable status of a particular activity, they should contact their local Revenue District for advice.
226. Deputy Hildegarde Naughton asked the Minister for Finance the reason an application for incapacitated child tax credit for a family (details supplied) was unsuccessful; if a new application can be submitted in this instance; and if he will make a statement on the matter. [13562/17]
View answerThe legislation governing entitlement to the Incapacitated Child Tax Credit is contained in Section 465 of the Taxes Consolidation Act 1997, as amended. The legislation provides that a person is entitled to the tax credit, for a year, if he or she proves that, at any time during that year, he or she had a child under 18 years of age who is permanently incapacitated by reason of mental or physical infirmity.
A child under 18 is regarded as permanently incapacitated by reason of mental or physical infirmity only if that infirmity is such that, if the child were over 18, there would be a reasonable expectation that he/she would be incapacitated from maintaining himself/herself.
In the context of establishing entitlement to the credit, Revenue requires medical evidence to confirm both the extent of the incapacity and whether the incapacity permanently prevents the child from being able, in the long term, to maintain him or herself independently when over the age of 18 years. If the incapacity can be corrected or relieved by the use of any treatment, device, medication or therapy, the child would not be regarded as permanently incapacitated for the purposes of this relief.
In the case concerned, Revenue has informed me that supplementary medical evidence was sought to confirm entitlement to the credit. Based on the information provided, the tax credit would not be payable in respect of one of the children, and in the case of the second child, there was an issue regarding the medical opinion provided and in relation to long term incapacity. I am further informed by Revenue that the taxpayers concerned were advised by letter of 10 February 2017 of the information required from the doctor to support the granting of the tax credit. If the additional information is supplied, the application can be considered further by Revenue.
227. Deputy Jack Chambers asked the Minister for Finance his plans to provide relief for holders of private pensions who were subjected to the Government levy; and if he will make a statement on the matter. [13634/17]
View answerI take it the Deputy is referring to the stamp duty levies applying to the assets of funded pension arrangements introduced in 2011 to pay for the Jobs Initiative, the chargeable persons for which are the trustees of pension schemes and others responsible for the management of pension fund assets.
The original 0.6% stamp duty levy on pension fund assets ended in 2014. The additional levy of 0.15% which I introduced for 2014 and 2015, mainly to help continue to fund Jobs Initiative, also ended in 2015.
The position is that the equivalent value of all of the money raised from the stamp duty levy has been used to fund the wide range of measures introduced in the Jobs Initiative to protect existing jobs and to help create new jobs and the Initiative has been a success in this regard. The measures introduced include expenditure measures such as the Jobbridge and Springboard schemes, as well as a number of tax and PRSI incentives such as the reduction in the VAT rate from 13.5% to 9% for the tourism and hospitality sectors and the temporary halving of the lower employer PRSI rate.
While the pension fund levies have ceased as I have already outlined, I have no plans to repay the pension fund levies collected or introduce reliefs as suggested in the question. The value of the funds raised by way of the levy have been used to protect and create jobs and this has helped to create the improving financial and economic position of the State. Taxpayers to whom the impact of the levy may have been passed on by the chargeable persons responsible for the payment of the levy (the pension scheme trustees, etc.) will benefit from the changes which I began in Budget 2015 and which have continued in subsequent Budgets to reduce the tax burden on low and middle income earners.
228. Deputy Niamh Smyth asked the Minister for Finance if he will review the case of persons (details supplied); if they are eligible under the help-to-buy scheme; if not, the reasons; and if he will make a statement on the matter. [13678/17]
View answerThe legislative provisions for the Help to Buy incentive are set out in section 477C of the Taxes Consolidation Act 1997 (TCA), as inserted by section 9 of the Finance Act 2016. The incentive applies for the period from 19 July 2016 to 31 December 2019.
The details supplied by the Deputy concern a couple who are self-building their home and who drew down the first tranche of the relevant mortgage in March 2016, before the announcement of the Help to Buy incentive. In this instance the relevant definitions contained in the legislation are 'qualifying period' and 'qualifying residence'.
A 'qualifying period' means the period commencing on 19 July 2016 and ending on 31 December 2019.
A 'qualifying residence' is:-
- a new building which was not, at any time, used, or suitable for use, as a dwelling or a building converted for use as a dwelling,
- which is occupied as the sole or main residence of a first-time purchaser (or self-builder),
- where the purchase value is not greater than €600,000 in the period from 19 July to 31 December 2016, and €500,000 in the period from 1 January 2017 to 31 December 2019, and
- in the period specified, a contract is entered into between a claimant and [...] a qualifying contractor or, the first tranche of a qualifying loan [...] is drawn down by a claimant.
The details supplied by the Deputy suggest that while the couple appear to meet some of the eligibility criteria for the Help to Buy refund, they do not meet the critical element regarding the date, as the first tranche of their mortgage was drawn down before the qualifying period commenced. Thus there is no entitlement to a refund in the circumstances described.
One of the primary policy aims of the incentive is to assist those struggling to save for the deposit required in purchasing a home. Individuals who purchased new homes before the announcement of the incentive did not need the assistance of the State to fund the required deposit. Such individuals made their purchasing decisions on the basis of the information available to them at the time of purchase, and could not have expected a subsequently introduced tax relief to also be available to them. Similarly, those who commenced the drawdown of agreed mortgages in respect of self build properties before 19th of July, could also not have expected a subsequently introduced tax relief to be available to them.
229. Deputy Niamh Smyth asked the Minister for Finance if he will review and address concerns (details supplied) in relation to the help-to-buy scheme; and if he will make a statement on the matter. [13767/17]
View answerAs the Deputy may be aware, there are three elements to the payment provisions under the Help to Buy incentive.
- Firstly, in respect of a first home purchased or self-built in the period from 19 July to 31 December 2016, the refund is paid directly to the purchaser or self-builder, that is 'to the claimant's bank account'.
- Secondly, for a first home purchased from a qualifying contractor in the period from 1 January 2017 to 31 December 2019, the refund is paid to the qualifying contractor's bank account.
- Thirdly, for a self-built home where the first tranche of the mortgage is drawn down in the period from 1 January 2017 to 31 December 2019, the refund is paid to the 'claimant's qualifying loan bank account', which is taken to be an account with the financial institution that extended the mortgage.
In relation to the concerns provided by the Deputy around the beneficiaries of the Help to Buy incentive, its purpose is to assist first-time buyers to fund their first home, whether purchased from a builder or self-built. The first-time buyer or self-builder in any of the three circumstances described above gets the benefit of the scheme, as their refund under the Help to Buy incentive is a credit against the purchase price/build cost of the home. In the case of a first-time buyer who purchases a home after 1 January 2017, she or he is getting the benefit of the refund even though he or she does not receive the Help to Buy refund directly. The legislation, in Section 477C(16)(b), of the TCA is very clear that 'where the appropriate payment is made in respect of a claimant to a qualifying contractor [...] the contractor shall treat the appropriate payment as a credit against the purchase price of the qualifying residence.'
Furthermore, regarding the comments referred to by the Deputy concerning the deposit process, the Help to Buy incentive aims to assist a first-time purchaser with funding a deposit at the outset of the purchase or self build process. However, there are inherent differences in the relevant processes. For a purchaser buying a new build, the first major expenditure is the point at which they enter into a contract to purchase and pay over the full deposit. I am advised by Revenue that from their discussions with the Construction Industry Federation, their understanding of the usual purchase process involves the payment of a 2 per cent booking deposit, followed by the payment of the balance to bring the deposit up to 10 per cent of the purchase price upon the signing of the contract. The timing of the payment of this deposit is a matter between the purchaser and seller but it is only when a contract has been entered into that a claim can be made for the tax refund under the scheme.
For a self-build property, the first major expenditure point usually coincides with the draw down of the first tranche of the relevant mortgage, and thus the refund is payable at this point in respect of self builds. The Help to Buy refund is worth 5 per cent of the value of the property, up to certain limits, and the legislation provides that it is a credit against the purchase of the new home.
230. Deputy Michael Harty asked the Minister for Finance if a newly developed graveyard becomes exempt from 13.5% VAT once it is five years old; the person or body that pays the 13.5% VAT on the grave; and if he will make a statement on the matter. [13793/17]
View answerSchedule 1 of the Value-Added Tax Consolidation Act 2010 lists the activities that are exempt from VAT which includes the provision of services by a funeral undertaker but does not extend to the supply of graves. The supply of a grave in a graveyard that is more than 5 years old is also exempt from VAT, but the supply of a grave in a newly developed graveyard is liable to the reduced rate of VAT (13.5%). However, the operator of a newly developed graveyard is entitled to VAT deductibility on their development costs as well as ongoing maintenance costs during the period where VAT is applied to the supply of graves.
231. Deputy John McGuinness asked the Minister for Finance if extra public car parking spaces will be provided at public offices, Hebron Road, Kilkenny; if appropriate plans for car parking will be put in place to accommodate the public and the employees that use the location for services and work; and if he will make a statement on the matter. [13840/17]
View answerI am advised by Revenue, as the lead tenant in the Government Offices in Hebron Road, Kilkenny, that car parking arrangements are subject to regular review. All available space on the grounds of the offices that is suitable for car parking use has been developed for this purpose. There are no current plans to expand the number of car parking spaces.
232. Deputy Brendan Griffin asked the Minister for Finance if the tax benefit of the home renovation incentive scheme can be carried forward for more than two years; and if he will make a statement on the matter. [13901/17]
View answerThe Home Renovation Incentive, introduced on 25th October 2013, provides income tax relief in respect of certain repairs, renovations and improvements carried out on a person's main residence by a tax compliant contractor qualifying under the Incentive. The scheme was subsequently extended to include repairs, renovations and improvements carried out on rental properties in Finance Act 2014, and improvements carried out by tenants of local authority homes in Finance Act 2016.
To qualify for relief, all qualifying work has to be carried out before 31 December 2018. However, where planning permission is required and is in place by 31 December 2018, works carried out and paid for up to 31 March 2019 will qualify.
The relief is given, as follows:
- in the first tax year after the tax year in which the payment is made to the qualifying contractor, by the lower of-
- 50 per cent of the relief due, and
- the amount which reduces the income tax of that tax year to nil,
and
- in the second tax year after the tax year in which the payment is made to the qualifying contractor, by the lower of-
- that part of the relief due that was not used in the first tax year, and
- the amount which reduces the income tax of that tax year to nil.
If relief due cannot be used in the first two tax years after the tax year in which the payment is made due to the insufficiency of income tax charged on the individual in those two tax years, this unused relief, called "excess relief", can be used to reduce the income tax liability in subsequent tax years until the relief is fully utilised. However, the amount of the excess relief used in any tax year cannot be greater than the amount which reduces the income tax charged on the individual in that tax year to nil.
233. Deputy Jack Chambers asked the Minister for Finance his views on whether Government policy is constraining the future potential of the credit union movement; and if he will make a statement on the matter. [14020/17]
View answerI wish to make it very clear that this Government's policy is not constraining the future potential of the credit union movement. In fact I would argue the opposite. As I have stated many times, credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. The Government recognises this and has put in place a number of measures to ensure that credit unions can continue to provide services to their members and to ensure the stability of the sector into the future. These measures include:
- the establishment of the Commission on Credit Unions;
- the publication of the Credit Union and Co-operation with Overseas Regulators Act 2012;
- the establishment of the Credit Union Restructuring Board ReBo;
- the establishment of a stabilisation levy to support credit unions that are undercapitalised but are otherwise viable;
- the availability of €250 million of exchequer funding for voluntary restructuring of credit unions facilitated by ReBo;
- the availability of €250 million of exchequer funding for resolution purposes.
Most of these measures stemmed from recommendations made in 2012 by the Commission on Credit Unions in its final report and were implemented over five years with the objective of developing a strengthened and revitalised credit union sector to ensure it is in a position to play an increasing role in the financial landscape of the future in this country.
Following on from this, in December 2015, I invited the Credit Union Advisory Committee (CUAC) to carry out a review of the implementation of those recommendations set out in the report of the Commission on Credit Unions. On 29 June 2016 I was presented with a report by CUAC which provides an in-depth analysis of the sector from a financial perspective and from a stakeholder perspective based on discussions with a wide range of stakeholders. This approach ensured a balanced report from CUAC providing focused and effective recommendations. I have now put in place an Implementation Group, which includes members from the main credit union representative bodies, to oversee and monitor implementation of these recommendations, which will support credit unions in many ways including in developing their business model.
The Government wants not only strong, vibrant credit unions offering a safe and secure place for members' savings but also credit unions' being appropriately positioned to offer their members a wide range of services including loans, debit card facilities and new facilities based on the needs of their membership. This Government recognises the important role of credit unions as a volunteer co-operative movement in Ireland and the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to continue to support a strengthened and growing credit union movement.
234. Deputy Jack Chambers asked the Minister for Finance the number of new credit union branches that have been approved for opening in the past five years; and if he will make a statement on the matter. [14021/17]
View answerIn accordance with Section 6 of the Credit Union Act 1997 (1997 Act), the Central Bank of Ireland is the sole authority with the power and responsibility for registering credit unions in Ireland. The last registration of a credit union took place in 1999.
The Central Bank informs me that it has not received an application to register a credit union since the Central Bank assumed responsibility for registering, regulating and supervising credit unions in 2003.
Registered credit unions may operate sub-office(s) (i.e. branches) under their registration and so do not require a separate registration for these.
235. Deputy Jack Chambers asked the Minister for Finance the process for new credit union branches to be approved and licensed by the Central Bank; and if he will make a statement on the matter. [14022/17]
View answerThe Central Bank of Ireland (Central Bank) is the sole authority with the power and responsibility for registering credit unions in Ireland in accordance with the provisions of the Credit Union Act 1997 (1997 Act). Under the 1997 Act, credit unions are registered rather than licensed. The Central Bank has an application process, along with supporting documentation, for any potential applicant wishing to register a credit union. The 'Checklist for completing and submitting Credit Union Registration Applications' which is available on request from the Central Bank, must be completed by applicants during the application process. It seeks information on all criteria credit unions are required to comply with on an on-going basis including:
|
Criteria Credit Unions are required to comply with: |
Criteria Credit Unions are required to comply with: |
|
- common bond and membership |
- internal audit |
|
- proposed rules of the credit union |
- financial control |
|
- objectives in line with the credit union objectives set out in the 1997 Act |
- anti-money laundering |
|
- strategic plan including proposed activities (products and services) to be provided to members and proposed funding strategy |
- conflicts of interest |
|
- governance arrangements and oversight |
- reserves and liquidity |
|
- risk management |
- lending and investments |
|
- compliance |
- systems and control/policies and procedures |
The comprehensive application process also requires details of the initial reserves the credit union will hold and it must be demonstrated that those initial reserves will be adequate to support the credit union. In addition, the applicant is required to provide five year projected financial statements, as well as reserves and liquidity projections.
In relation to the board of directors and management, information is also sought on the following requirements:
- all persons proposed to perform Controlled Functions, which include the board of directors and management, must meet the Central Bank's Fitness and Probity requirements for credit unions. This includes obtaining approval by the Central Bank of the chair of the board of directors and the manager of the credit union prior to the individuals concerned taking up these positions.
- the governance framework in the 1997 Act which sets out requirements for the board of directors and certain management positions.
Conditions may be imposed by the Central Bank on a credit union's registration.
Any applicant interested in registering a credit union can contact the Registry of Credit Unions at the Central Bank.
236. Deputy James Lawless asked the Minister for Finance the number of applications received by his Department for the recent positions available on the Central Bank Commission; the number of these applications placed before him for his consideration; the completion date for all vacancies to be filled on this commission; and if he will make a statement on the matter. [14050/17]
View answerIn 2016 the Public Appointments Service (PAS) undertook a campaign to identify suitably qualified candidates to fill the two vacancies on the Central Bank Commission.
The campaign attracted thirty applications, six of which were shortlisted by a PAS led assessment panel for further consideration by the Minister.
While these six candidates exhibited proven track records in their respective fields, it was decided that, in the context of the Brexit led focus on international businesses seeking to establish operations here, to try and add further suitable candidates to the original six identified by the Public Appointments Service.
That process is still ongoing.
