Wednesday, 3 May 2017

Written Answers Nos. 134-140

Garda Strength

Questions (134)

Jonathan O'Brien

Question:

134. Deputy Jonathan O'Brien asked the Tánaiste and Minister for Justice and Equality the number of gardaí attached to the crime and security branch; and the ranks of each. [21128/17]

Written answers

Tánaiste and Minister for Justice and Equality

As the Deputy will appreciate, the Garda Commissioner is responsible for the distribution of resources, including personnel, among the various Garda Divisions and I, as Minister, have no direct role in the matter. Garda management keeps the distribution of resources under continual review in the context of crime trends and policing priorities so as to ensure that the optimum use is made of these resources.

I am informed by the Garda Commissioner that Garda Security and Intelligence (formerly Crime and Security) comprises four sections:

1) Garda Síochána Analysis Service,

2) Liaison and Protection,

3) Security and Intelligence,

4) Special Detective Unit.

I am advised that for security and operational reasons it is not possible to provide the information requested by the Deputy.

Garda Recruitment

Questions (135)

Frank O'Rourke

Question:

135. Deputy Frank O'Rourke asked the Tánaiste and Minister for Justice and Equality if she will consider raising the age limit which is imposed on persons wishing to join An Garda Síochána whereby persons must be 18 years of age but not yet 35 years of age on midnight of the closing date for the competition; if she will consider extending recruitment to older persons by bringing the age limit in line with that of the PSNI, in which the age limit stands at 42 years of age; and if she will make a statement on the matter. [21131/17]

Written answers

Tánaiste and Minister for Justice and Equality

As the Deputy will be aware, recruitment to An Garda Síochána is governed by the Garda Síochána (Admissions and Appointments) Regulations 2013 and the recruitment and training of An Garda Síochána is a matter for the Garda Commissioner, and I as Minister have no direct role in the matter.

Recruitment competitions for full time members of An Garda Síochána are open to all who meet the eligibility criteria set out in the Garda Síochána (Admissions and Appointments) Regulations 2013.

Regulation 4 (a) specifies that the age at which a person may apply to join An Garda Síochána as a full time member is not more than 35 years.

This upper age limit of 35 was set having regard to equality legislation and also took into account the following criteria:

(1) the cost of training and the need for recruits to serve for a sufficient period of time as full members of the service to recoup this cost,

(2) the operational requirements of the service in terms of having an age profile appropriate to the physical demands placed on members in the course of their duty.

There are currently no plans to review this Regulation.

Departmental Data

Questions (136)

Clare Daly

Question:

136. Deputy Clare Daly asked the Tánaiste and Minister for Justice and Equality the details of payments made by her Department or a public body under the aegis of her Department to a person (details supplied) in the past 36 months and to date in 2017. [21391/17]

Written answers

Tánaiste and Minister for Justice and Equality

I wish to advise the Deputy that from an examination of records in my Department and Agencies under the remit of my Department's Vote there is no record of any payments to the named individual.

Central Bank of Ireland Investigations

Questions (137)

Catherine Connolly

Question:

137. Deputy Catherine Connolly asked the Minister for Finance the number of prosecutions which have arisen from the offences set out in section 12 of the Consumer Credit Act 1995 (details supplied); the names of the parties prosecuted; the outcome of these prosecutions; and if he will make a statement on the matter. [20888/17]

Written answers

Minister for Finance

As the Deputy may be aware, the Central Bank has the power to prosecute summary offences under the Consumer Credit Act 1995 ("the CCA"). I understand from the Central Bank that, to date, it has not prosecuted any summary offences subject to the powers available to it in the CCA.

The Central Bank also has a statutory reporting obligation to An Garda Síochána, and other agencies, where it suspects a criminal offence may have been committed. The Central Bank also has a range of powers at its disposal under the CCA including, but not limited to, powers to carry out investigations, to publish codes of practice and to bring Civil Proceedings in the High Court.

I also understand that the Central Bank takes its obligations under the CCA very seriously and I expect it to ensure that that financial service providers comply with their obligations under the CCA and other relevant legislation on an on-going basis. Since 2006, 108 Settlement Agreements have been reached for regulatory breaches, including breaches of the Consumer Protection Code, the Criminal Justice (Money Laundering and Terrorist Financing) Act, the Code of Practice on Lending to Related Parties, the Minimum Competency Code, and the Credit Union Act among others, with fines totalling approximately €57 million. The notices for all Settlement Agreements are published on the Central Bank’s website: https://www.centralbank.ie/news-media/legal-notices/settlement-agreements.

If the Deputy has any particular concerns, I would urge her to make contact with the Central Bank.

NAMA Loans Sale

Questions (138)

Mick Wallace

Question:

138. Deputy Mick Wallace asked the Minister for Finance the details of the sales process engaged in by NAMA in respect of Project Shift; the reason the loans were not included in the Project Eagle loan sale; if the process was an open and competitive process; the number of bidders or potential bidders that were involved in different stages in the process; if a restricted number of parties were invited to make offers; the actual number of parties that were invited to make a bid; if the NAMA debtor in question had engagement with the bidders prior to the sale of the portfolio; and if he will make a statement on the matter. [20937/17]

Written answers

Minister for Finance

The Deputy will be aware that Section 9 of the NAMA Act provides that NAMA is independent in the performance of its functions and that, under Section 10 of the Act, its primary objective is to obtain the best achievable financial return for the State from its acquired loan portfolio. In this regard, I am advised that NAMA is confident it upheld its mandate in the Project Shift transaction.

The Project Shift sale comprised a portfolio of German property assets held by a Northern Ireland based debtor. I am advised that the marketing process for Project Shift began in June 2013 as an asset sale being conducted by the debtor with NAMA's consent. This was in advance of NAMA’s decision to place the Project Eagle portfolio on the market for sale. The Project Shift sales process was at the ‘sale agreed’ stage before the launch of Project Eagle. However, the sale did not complete prior to Cerberus being selected as the preferred bidder for the Project Eagle portfolio. Given that the same purchaser was involved in both transactions, it made sense to complete the Project Shift transaction as a loan sale rather than an asset sale and thereby complete the disposal of all of the debtor’s loans to Cerberus.

I am advised that the debtor's Project Shift sale advisor, Savills, approached some 117 prospective investors and that 12 investors submitted first round offers within the relevant bid deadline. I am advised that NAMA, acting on the advice of the debtor's sales advisor, consented to the sales advisor inviting eight investors into a second round of bidding. The eight investors were provided with access to a detailed electronic data room to carry out further due diligence. I am further advised by NAMA that seven of the shortlisted investors submitted second round offers by the bid date for this transaction. On the advice of Savills, the debtor's sales advisor, NAMA consented to the debtor entering into exclusive discussions with Cerberus which had submitted the highest bid after an open, transparent and competitive open market sales process. The Deputy will also be aware that the Comptroller & Auditor General noted, in his review of Project Eagle last year, that the Project Shift sales process was openly marketed and that it had commenced prior to Project Eagle.

There is no prohibition on debtors engaging with potential purchasers prior to the launch of a sales process.

Economic Policy

Questions (139)

Pearse Doherty

Question:

139. Deputy Pearse Doherty asked the Minister for Finance if he has conducted a risk analysis of the potential impact to Ireland of reforms in the short, medium and long terms regarding the proposed US corporate tax changes; and if he will make a statement on the matter. [20947/17]

Written answers

Minister for Finance

I note the proposals announced by the Trump Administration for tax reform.

At this stage, we have yet to see the substantive detail of the overall package proposed by the Trump Administration. Agreement between the House of Representatives, the U.S. Senate and President Trump will be needed before any changes can be introduced. It also remains to be seen whether any reduction in the US corporate tax rate would be permanent or temporary in nature.

The exact implications of US tax reform for Ireland, and the rest of the world, will depend on the exact nature of any changes which are ultimately agreed.

At this stage, sufficient details have not been published to enable a comprehensive analysis of the potential impact of the proposals. My Department, and the Irish Embassy in the US, are closely tracking the debate in the US and we continue to engage with business and others to fully understand the potential impacts of any US reform.

What is clear however is that Ireland’s membership of the EU is, and will remain, a key factor in attracting FDI from the US and elsewhere. Global business, from the US or elsewhere, will always want to have operations in the EU, and Ireland will remain very competitive and attractive as an EU location to invest in and do business from.

Ireland’s corporation tax regime and 12.5% corporation tax rate will continue to be competitive while also offering long-term certainty to international business. As always, we will remain alert and responsive to any changes in the US or global tax environment.

Tax Code

Questions (140)

Pearse Doherty

Question:

140. Deputy Pearse Doherty asked the Minister for Finance his plans to revise the favourable tax treatment, and in some cases exemptions, to taxes in the cases of retail estate investment trust Irish collective asset management vehicle and qualifying investor alternative investment fund that have invested in housing here in view of recent CSO data which shows that REITs and private equity companies have purchased more than a fifth of the housing stock in Dublin over the past two years (details supplied); and if he will make a statement on the matter. [20948/17]

Written answers

Minister for Finance

A Real Estate Investment Trust (REIT) is a quoted company, used as a collective investment vehicle to hold rental property. A REIT generally has a diverse ownership requirement, so no one person or group of connected persons can control the REIT. REITs originated in the USA in the 1960s, and aspects of the REIT model have now spread to become a globally recognised investment standard in over 35 countries worldwide, including the majority of the world’s developed investment jurisdictions.

Finance Act (no. 2) 2013 introduced a tax regime for REIT into Irish legislation. A REIT is exempt from corporation tax on qualifying income and gains from rental property, subject to a high profit distribution requirement to shareholders – the Irish distribution requirement is 85% of property profits. A REIT is a collective investment vehicle which provides the same after-tax returns to investors as direct investment in rental property, by eliminating the double layer of taxation at corporate and shareholder level which would otherwise apply.

In terms of Irish Investors, individuals are liable to tax at their marginal rates while corporates are liable to tax at 25%. Institutional portfolio investors are liable to tax on REIT dividends at 12.5%, this being the rate generally applicable to trading income. Dividend Withholding Tax (DWT) at the standard rate of 20% will be deducted by the REIT from dividends paid to shareholders, and will be available as a credit against tax liabilities.

With regard to foreign investors, the REIT will withhold DWT at the standard tax rate of 20%. Foreign investors resident in treaty countries may be able to reclaim some of this DWT under the relevant tax treaty. Tax treaty rates on dividends vary from treaty to treaty, but the most common rate applicable to small shareholdings would be 15% - this means that Ireland would retain taxing rights of 15% on dividends paid from Ireland.

In relation to the tax treatment of Irish collective asset-management vehicles (ICAVs) and qualifying investor alternative investment funds (QIAIFs), the normal tax treatment afforded to Irish collective investment funds is that the funds invested are allowed to grow on a tax-free basis within the fund. The income is taxed at the level of the investor rather than the fund, as is standard international practice.

In order to ensure that the appropriate tax is collected from Irish investors, funds are obliged to operate an exit tax regime and remit the tax deducted in this manner to Revenue. This charge to tax does not apply in the case of unit holders who are non-resident. In the case of non-resident investors, their liability to tax on gains from the fund will be determined in their home jurisdiction.

In the 2016 Finance Act I introduced the Irish Real Estate Fund (IREF). IREFs are investment undertakings (excluding UCITS) where 25% of the value of that undertaking is made up of Irish real estate assets.

The legislation was introduced to address concerns raised regarding the use of collective investment vehicles to invest in Irish property. The investors had been using the structures to minimise their exposure to Irish tax on Irish property transactions.

IREFs must deduct a 20% withholding tax on certain property distributions to non-resident investors. The withholding tax will not apply to certain categories of investors such as pension funds, life assurance companies and other collective investment undertakings.

I am of the view that the taxation regime as described above remains appropriate for these entities.