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Thursday, 22 Jun 2017

Written Answers Nos. 54-73

Office of the Director of Corporate Enforcement

Questions (54)

Róisín Shortall

Question:

54. Deputy Róisín Shortall asked the Tánaiste and Minister for Jobs, Enterprise and Innovation when the report of the handling of the collapse of the recent trial by the ODCE (details supplied) is expected to be submitted to her Department; and if she will publish the report in its entirety as soon as it is received. [29267/17]

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Written answers

The investigative shortcomings of the Office of the Director of Corporate Enforcement (ODCE) identified by Judge John Aylmer in this case fell far short of the standard of impartial, unbiased and thorough investigation we expect and demand.

My predecessor, Minister of State Mitchell O’Connor, wrote to the Director of Corporate Enforcement on Wednesday May 24th , requesting a report under section 955(1)(a) of the Companies Act 2014.  This report is to outline issues arising from the investigations by the ODCE into Anglo Irish Bank since 2008. In particular, she ordered that the report include an explanation of the following:

- the coaching of witness statements;

- late disclosure of documents;

- a perceived bias by ODCE investigators;

- the shredding of documents; and

- any other relevant matters.

This report is to be finalised as a matter of urgency and no later than June 23rd . All options will be considered to ensure mistakes of this nature cannot reoccur.

Employment Rights

Questions (55)

Bríd Smith

Question:

55. Deputy Bríd Smith asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if her attention has been drawn to the fact that a number of companies in the security industry are refusing to pay the recently passed ERO increase for the industry; the action her Department plans to take to ensure this increase is complied with; and if she will make a statement on the matter. [29279/17]

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Written answers

The Inspection and Enforcement Services of the Workplace Relations Commission (WRC) monitor employment conditions to ensure compliance with and, where necessary, the enforcement of employment rights legislation. This includes redress for the employees concerned and payment of any unpaid wages arising from breaches of employment rights.   

The Industrial Relations Act 2012 provides for the making of Employment Regulation Orders (EROs) whereby proposals on pay and other terms and conditions are formulated by Joint Labour Committees (JLCs) and adopted by the Labour Court if the Court is satisfied that the JLC has complied with the relevant Sections of the 2012 Act. The Labour Court then makes a recommendation to the Minister who if satisfied that the Act has been complied with will make an Employment Regulation Order, the terms of which are legally enforceable and applicable to all employers in those sectors.

If enterprises that are covered by Employment Regulation Orders are experiencing severe financial difficulties they may apply to the Labour Court for an exemption from their obligation to pay the rates provided for in the Orders for a specified period of time. The criteria relating to these exemptions are provided for in the Industrial Relations (Amendment) Act 2012.

Prior to the 1st June last, SI No. 417 of 2015 Employment Regulation Order (Security Industry Joint Labour Committee) 2015, which came into operation on 1 October 2015 applied in the sector.  The table below sets out the detail relating to inspections carried out in the Security Sector between 1 October 2015 and 31 May 2017.

Security Sector   

No. Inspections  

No. of Employers in Breach  

Oct-Dec 2015

3

2

2016

17

5

2017 (to 31 May)

5

2

        

Employment Regulation Order (Security Industry Joint Labour Committee) 2017 (SI No. 231 of 2017) came into effect from 1 June last and revokes the 2015 Order.  It is anticipated that a similar number of inspections will be carried out in the sector this year as compared to last year. 

Employees in the sector who feel that their employment rights have been contravened can make a complaint to the WRC. The Commission’s Information Officers may also be contacted at 1890 808090 or through the website www.workplacerelations.ie  for information on employment rights and entitlements.

Departmental Contracts Data

Questions (56)

Bríd Smith

Question:

56. Deputy Bríd Smith asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the monetary value of all work contracted out under the aegis of her Department to external agencies or consultancies for work completed or investigations undertaken in human resources and industrial relations including hiring and interviewing of staff, disciplinary procedures and workplace related issues such as allegations of bullying and so on or dignity at work issues in each of the years 2015 and 2016. [29341/17]

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Written answers

During the years 2015 and 2016 my Department, as an employer, did not engage external resources to undertake or support investigations in the area of human resources and industrial relations. 

In addition, as the Public Appointments Service provides my Department with its externally sourced/recruited staff and my Department manages its own internal recruitment processes itself without recourse to external agencies or consultancy, no monetary costs arise, per se.

Action Plan for Jobs

Questions (57)

Niall Collins

Question:

57. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if her Department will remain the lead Department for the action plan for jobs and the implementation of Enterprise 2025 under the new Government. [29397/17]

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Written answers

As Tánaiste and Minister for Jobs, Enterprise and Innovation, I will lead the development of the Action Plan for Jobs across Government and I will also lead the development and implementation of national enterprise policy, including Enterprise 2025.

The Action Plan for Jobs has proven to be an effective mechanism for coordinated cross government action focused on job creation and on creating an environment that is conducive to entrepreneurship, investment and enterprise growth. The existing process will continue to ensure the required focus on the achievement of sustainable full employment on an annual basis in the context of considerable international uncertainty.

The ambition in Enterprise 2025 is to achieve sustainable full employment by 2020. The required actions to achieve sustainable full employment were set out in Enterprise 2025, in terms of building the resilience of the enterprise base through productivity, innovation and market diversification. These are to be delivered by DJEI and the enterprise development agencies and also by a number of government departments that have a role to play in ensuring we have a supportive and internationally differentiated business environment. I will be reviewing the performance and impacts achieved over the coming months and identifying any required changes and policy responses.

Unemployment Data

Questions (58)

Niall Collins

Question:

58. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her views on the latest unemployment data in the CSO's Census 2016 Summary Results - Part 2 and the fact that there are 79 unemployment blackspots nationwide with Limerick city and county with 18 such blackspots; and if the action plan for jobs will be reviewed to take these findings into account. [29399/17]

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Written answers

The Government’s goal is to create 200,000 jobs by 2020 – including 135,000 jobs outside Dublin. This is an ongoing process, and employment continues to grow strongly. In the year since Census 2016 was completed, almost 70,000 more people are at work. More than three out of every four new jobs created in this period were outside Dublin.  

According to the CSO’ Quarterly National Household Survey, in Q2 2016 when the Census was undertaken, there were 14,600 people unemployed in the Mid-West region. The unemployment rate was 8.5%. At Q1 2017, the most recent data available shows the unemployment rate in the Mid-West has dropped by 1.7 percentage points to 6.8%. The number of unemployed persons has fallen by 3,100 in the same period, while the number of people on the Live Register in County Limerick has fallen by almost 2,000 – a drop of 16%. 

The Action Plan for Jobs is one of the Government’s key instruments to support this target. My priority is to ensure that the actions committed to in the 2017 Plan to secure employment and retain jobs in the face of global uncertainty are delivered. I will shortly be commencing the process to develop the 2018 Plan. I want to use our collective resources across Government to support enterprise and sustainable employment growth in all regions and ensure all of our people have the opportunity to enjoy rewarding work.  

Action Plan for Jobs 2017 includes actions aimed at stimulating regional growth, including the progression, monitoring and support of the eight Regional Action Plans for Jobs, which through public and private sector collaboration seek to build on existing strengths and assets and identify opportunities within each region, and realise the national Action Plan’s regional employment targets. 

To support the regional jobs agenda, additional funds will be made available through the enterprise development agencies out to 2020. In this context, a competitive Regional Enterprise Development Fund 2017-2020 was launched in May 2017, providing funding of up to €60 million to co-finance the development and implementation of collaborative and innovative projects that can sustain and add to employment at a national, regional and county level.  This regional competitive fund will support the ambition, goals and implementation of the Regional Action Plans for Jobs.  In addition, additional funding of €150m is being made available to the IDA to support its Regional Property Programme and drive job creation in the multi-national sector.

Brexit Issues

Questions (59)

Niall Collins

Question:

59. Deputy Niall Collins asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her views on the policy proposals in the latest publication by an organisation (details supplied) regarding protecting businesses from a hard Brexit; and if the Government is considering implementing these suggestions including an agreement at EU level for revision of state aid rules. [29400/17]

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Written answers

I welcome the fact that many representative organisations have published papers identifying challenges for their sectors. This is important as it ensures that Government is better placed to put appropriate policy responses in place. This particular publication from Ibec is a valuable contribution to our knowledge base and will help to inform the development of policy responses.

A number of other useful studies have already been published which set out the potential impacts of Brexit, including sectoral assessments (e.g. tourism, agri-food), and many of these are listed on merrionstreet.ie website.

From my Department’s perspective:

- We recently published the findings of a survey of 1,045 SME business owners and have set out a number of actions being developed to support SMEs in responding to the challenges of Brexit.

- My Department funded a recently published research project by the ESRI undertaken in close cooperation with InterTrade Ireland to improve our understanding of the impact on cross border trade of different trade and tariff regimes which might be imposed following Brexit.

- My Department is also currently undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy.

- In addition we are profiling the composition of trade and investment for Ireland and a range of EU Member States with the UK - this will provide an evidence base to inform Ireland's policy positions as part of the wider negotiation on the UK's future relationship with the EU.

It remains important that Government consults widely and extensively as negotiations progress.

Since the Referendum, in my role as Tánaiste I have engaged with stakeholders, listening to their views about challenges and opportunities particularly in the context of Brexit. I am aware of the range and depth of issues facing Irish business in light of the decision of our largest trading partner to leave the European Union.

As Minister for Enterprise and Innovation, I look forward to engaging with a wide range of representative organisations to ensure that the potential impact of Brexit at a sectoral and regional level is understood and used to inform Ireland’s policy response. In the coming weeks, I will be meeting representatives from across the business community to hear first-hand the issues facing enterprise in this country. The impact of Brexit will be a key focus of these discussions.

More immediately, I will be participating in the National Economic Dialogue in the coming days and will take the opportunity to discuss with all participants the challenges, mitigation measures and opportunities that Brexit raises.

This will build on the work my officials have already undertaken to ensure the Government’s Brexit preparations take account of the issues facing businesses, entrepreneurs and innovators.

Earlier this year, my Department held a large stakeholder engagement event in Carrick-on-Shannon on 30th January to hear the views of all stakeholders.  I look forward to co-hosting with Minister Bruton, a similar event which will focus on assessing and responding to the impact of Brexit on Skills on the 3rd July.

I am keen that the Department continues to engage in in-depth and frequent dialogue with our stakeholders on a range of policy areas which fall within our remit.

In this regard, the Department of Jobs, Enterprise and Innovation Enterprise Forum on Brexit and Global Challenges is an effective tool for ensuring open, two-way communication between Government and the enterprise community, and provides a vehicle for discussion of enterprise, trade and investment policy implications arising from wider global challenges, with a specific focus on Brexit in the first instance.

In relation to supporting our enterprises, my department has been working with the Department of Finance, the Department of Agriculture, Food and the Marine, Enterprise Ireland and the SBCI to build an understanding of the business needs of companies in adapting to the challenges posed by Brexit and to develop appropriate and targeted responses to support them.

Based on this work, we are progressing the development of a proposed Brexit Working Capital Guarantee Scheme and we are scoping out the need for a longer term Business Development Loan Scheme which would assist firms in investing for a post-Brexit environment. Development of these proposed responses is at an early stage, and is subject to resources being agreed as part of the annual budget process.

These measures are being considered in the context of existing State Aid rules leveraging support from EU sources such as the EIF.

As the situation evolves, and we get a better idea of impacts on enterprise in a post Brexit landscape, we will almost certainly need to have further discussions with the Commission in order to ensure that we take sufficient measures in good time to ensure that our most exposed and impacted companies and sectors do not suffer irreparable damage, resulting in significant job losses, as a result of the UK’s decision to leave the EU.

Credit Availability

Questions (60)

Niall Collins

Question:

60. Deputy Niall Collins asked the Minister for Finance his views on the increase in SME loan refusals by banks per the latest industry data (details supplied); and his further views on the lack of alternative sources of finance available to small businesses and the continued high cost of borrowing here compared to other European countries. [29398/17]

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Written answers

The Deputy will be aware that my Department conducts a biannual SME Credit Demand Survey. This survey series, currently being conducted by Behaviour & Attitudes, is the most comprehensive survey of SME credit demand in Ireland, covering over 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, and in all regions are included.

The latest survey which can be found here  http://www.finance.gov.ie/what-we-do/banking-financial-services/sme-credit-lending indicates that the majority of credit requests continue to be approved fully with 84% of credit applications (excluding 'still pending') approved or partially approved.  The current rate of decline stands at 15% of all applications. 

The Central Bank of Ireland's most recent SME Market Report for the second half of 2016 also shows that rejection rates for credit applications by SMEs and loan/overdraft rejection rates are in line with euro area averages.  This report can be found here: http://www.centralbank.ie/publications/Documents/SME%20Market%20Report%202016H2.pdf

In relation to borrowing costs, the most recent published Department of Finance SME Credit Demand Survey, reports only 1% of the SMEs that did not seek credit stated this was because it was too expensive to borrow. When asked for the reason SMEs did not borrow, 86% of firms reported they did not need to borrow.

Notwithstanding these results the Government is conscious that the SME credit market is highly concentrated. In order to help address this issue, the Government established the Strategic Banking Corporation of Ireland (SBCI). Its purpose is to make sustainable, flexible and appropriately priced finance available to viable Irish SMEs and support investment in them that encourages growth and facilitates employment across the whole country.

The SBCI uses an on-lending model; this means it does not lend directly to SMEs, rather it lends through partner financial institutions known as on-lenders. The SBCI currently has eight on-lending partners, three bank and five non-bank. The SBCI is seeking to broaden its distribution capability and market coverage by adding new on-lenders and working to develop innovative products, thereby serving to drive competition in the SME finance market.

The Government remains committed to the SME sector.  I can assure the Deputy that my Department, working with other relevant Departments and Agencies such as the Credit Review Office, will continue to advance policies to support and monitor the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance.

Insurance Industry

Questions (61)

David Cullinane

Question:

61. Deputy David Cullinane asked the Minister for Finance further to Parliamentary Question No. 125 of 28 March 2017, the position regarding the Supreme Court ruling which was due on 25 May 2017; and if he will make a statement on the matter. [29269/17]

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Written answers

The Supreme Court delivered its judgment on 25 May 2017 and overturned the previous decisions of the High Court and the Court of Appeal that the Motor Insurers’ Bureau of Ireland (MIBI) is liable in respect of third party motor insurance claims made against the policyholders of Setanta Insurance.  The consequence of this is that the Insurance Compensation Fund (ICF) has been deemed responsible for the payment of such third party claims.

Setanta Insurance was placed into liquidation by the Malta Financial Services Authority in April 2014 and this liquidation is being carried out under Maltese law.  The Liquidator has informed the Department that, as of 20 June 2017, the number of open claims was 1,578.  As the judgment has been delivered, it is now possible to begin the process of making payments of up to 65% (or €825,000, whichever is the lesser) due to relevant third party claimants from the ICF. 

It is expected that a proportion of the balance of claims will be met from the proceeds of the distribution of Setanta’s assets on completion of the liquidation process. However, it is not possible to say definitively at this stage what proportion of the claims this will amount to, but current indications are that this is unlikely to be sufficient to cover all of the 35% gap.

In 2014, a preliminary assessment was carried out by Towers Watson who indicated that the Liquidator would not be in a position to meet more than 30% of claims out of the assets of the liquidation. The Liquidator has informed the Department that as the Supreme Court has now made its judgment, it will be necessary for a new report to be commissioned to provide updated figures. This is expected to commence shortly.

The extent of the shortfall (i.e. the difference between the full amount due and the combined total of the ICF payment plus the Setanta distribution) is unlikely to become fully clear until the liquidator has determined the remaining monies in Setanta that he has to distribute to policyholders.

Finally, in relation to when payments can be expected to commence, the Office of the Accountant of the Courts of Justice and the State Claims Agency are working with the Liquidator to progress the making of payments. The Liquidator for Setanta has informed me that there are currently 324 claims ready for settlement and listed for inclusion in the next application for payment from the ICF, which will be subject to validation by the State Claims Agency.  The State Claims Agency has assured the Department that it will act swiftly so that there will be no unnecessary delay caused by the validation process.

The Deputy may be aware that the forthcoming legislation based on the recommendations of the Review of the Framework for Motor Insurance Compensation in Ireland will amend the relevant Insurance Acts to ensure 100% of third party motor claims will be covered in future.

Departmental Agencies

Questions (62)

Róisín Shortall

Question:

62. Deputy Róisín Shortall asked the Minister for Finance the details of the section 38 agencies which his Department has granted approval to use an asset as collateral under the terms of SI 120 of 2014 since the order came into operation; the specific asset used; and if he will make a statement on the matter. [29275/17]

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Written answers

With specific regard to section 38 agencies, I am presuming the Deputy is referring to the agencies provided with funding under Section 38 of the Health Act, 2004. My Department has received no request for consent to be granted to a Section 38 body under the terms of SI 120 of 2014.

Statutory Instrument (SI) number 120 of 2014 refers to the General Government Secured Borrowings Order. The purpose of this Order is to prescribe the persons and bodies subject to the provisions of Section 67 of the Credit Institutions (Stabilisation) Act 2010, which provides that secured borrowing by the prescribed persons and bodies requires the consent of the Minister for Finance.

The bodies listed in the schedule of the SI are prescribed for the purposes of Section 67 of the Credit Institutions (Stabilisation) Act 2010 (No. 36 of 2010).

This requirement in law is that a local authority or a person or body (including Government Departments) in the Schedule shall not mortgage, pledge or encumber its own assets or revenues to secure any present or future indebtedness or any guarantee or indemnity given in respect of such indebtedness without the consent of the Minister for Finance.  This is required in order to comply with the loan agreements with the European Financial Stabilisation Mechanism (EFSM), the European Financial Stability Facility (EFSF) under the EU – IMF support programme, and with the UK, Sweden and Denmark under the Bilateral Loan agreements. The requirement remains in place for the duration of the loans, i.e. it did not expire at the end of the programme period.

NAMA Operations

Questions (63)

Mick Wallace

Question:

63. Deputy Mick Wallace asked the Minister for Finance his plans to initiate a section 227 review of NAMA, with regard to the achievement of NAMA’s purposes under the NAMA Act 2009, in view of the recent commencement of the commission of investigation into NAMA and Project Eagle; and if he will make a statement on the matter. [29319/17]

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Written answers

As Minister for Finance, I have a specific obligation to review and assess NAMA's activities under Section 227 of the NAMA Act.  The establishment of a Commission of Investigation does not alter this obligation, nor my intention to carry out such a review in due course.

The Deputy will be aware that Department of Finance officials previously prepared a report under Section 227, addressing the period to year end 2013 which was published in July 2014.  The report assessed the extent to which NAMA had made progress toward achieving its overall objectives and whether the continuation of NAMA was necessary for the purposes of the Act.  The report concluded that NAMA had made significant progress in achieving its overall objectives, and based on its performance and financial projections in light of the strength of investor interest in Ireland, was well positioned to achieve its overall objectives and so continued to be necessary.

In the context of this report, consideration was given to various strategic alternatives that may facilitate NAMA achieving and ideally surpassing its objectives.  The Section 227 Review is available on the Department of Finance website via the following link: www.finance.gov.ie/sites/default/files/NAMA_Section_227_Review_web2.pdf .

The NAMA Act determines that a Section 227 Review is carried out as soon as may be after 31 December 2012, and every 5 years after that while NAMA continues in existence.  Therefore, I expect the next Section 227 report to cover the period to year end 2018.  This review will assess the extent to which NAMA has made progress toward achieving its overall objectives and determine whether NAMA remains necessary having regard to the purposes of the Act.  Given NAMA's progress to date and expectations of continued progress toward achieving its overall objectives, I anticipate that this next Section 227 report will give consideration to various strategic alternatives regarding NAMA's orderly wind down once NAMA has completed its work. 

As you are aware, Section 227 of the NAMA Act also allows the Minister to at any time require NAMA to report to him or her regarding progress with regard to the achievement of NAMA’s purposes.  I retain the ability to undertake such a report if I determine that a review of NAMA is required to cover a period before year end 2018.

Redundancy Payments

Questions (64)

Mick Wallace

Question:

64. Deputy Mick Wallace asked the Minister for Finance if he will address a matter (details supplied) regarding voluntary redundancies; and if he will make a statement on the matter. [29320/17]

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Written answers

As the Deputy is aware the NAMA retention and redundancy scheme was established to help safeguard NAMA’s performance during an orderly wind-down and allow NAMA to fulfill its objective of maximising value for the State.

For the benefit of those unfamiliar with NAMA's redundancy and retention scheme, the Secretary General of the Department of Finance provided a detailed note on the scheme to the Public Accounts Committee in January 2016 which can be accessed via the following link (see pages 3 - 8):  http://www.oireachtas.ie/parliament/media/committees/pac/correspondence/2016meetings/meeting180-28012016/PAC-R-2078-Correspondence-3A.1---Follow-up-from-Derek-Moran-Dept-Fin-re-meeting-of-03.12.15.pdf

As set out in previous responses to the Dáil, including Dáil Questions 131 and 273 of 31 January 2017 and 2 May 2017 respectively, the redundancy element 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 retention portion of the scheme is being implemented in line with the stipulated parameters, which my predecessor agreed 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.  To be eligible for the retention scheme a NAMA employee must:

- have been identified by the NAMA Board as essential to achieving NAMA’s objectives;

- be on a specified purpose contract.  An employee is not eligible if on a permanent contract; has a right of return to the NTMA or is employed by any successor entity of NAMA;

- have a minimum of two year’s employment with NAMA at the time of redundancy

- have maintained a “fully satisfactory” rating or greater for the duration of their employment with NAMA; and

- remain with NAMA as long as required (Note: an employee will not be paid if (s)he resigns prior to the pre-agreed termination date).

Further to Parliamentary Question 273 of 2 May 2017, I am advised by NAMA that since the redundancy and retention scheme was approved by the NAMA Board in late 2015, a total of 91 members of staff assigned to NAMA have been approved for the scheme.  Fifty of the 91 approved staff exited NAMA in 2016 at a cost of €3.6m; the accrued cost for the remaining 41 of 91 approved staff is €3.9m.  To end May 2017, 6 of the 41 staff have exited under the scheme in 2017.  The scheme is ongoing as employees continue to exit throughout 2017.  

The following table provides a breakdown by division of the 91 members of staff approved for the scheme.

National Treasury Management Agency

Questions (65)

Mick Wallace

Question:

65. Deputy Mick Wallace asked the Minister for Finance the details of the NTMA's records management policy with regard to the retention of emails; and if he will make a statement on the matter. [29321/17]

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Written answers

The National Treasury Management Agency have informed me that its record management policy applies to all of its records irrespective of their format. The NTMA’s records evidence the conduct of business and when considering retention periods, the content and context are the determining factors. Retention periods are set out in the policy, based on the nature of the records and any legal requirements. These vary from no longer than necessary to permanent. Therefore in relation to the retention of emails there is no set timeframe applying to emails, the retention period is determined by the content and context of the email.

Tax Code

Questions (66)

Brendan Griffin

Question:

66. Deputy Brendan Griffin asked the Minister for Finance his plans to facilitate the deduction of VAT at the point of sale for new vehicles for commercial customers with VAT registration (details supplied); and if he will make a statement on the matter. [29322/17]

View answer

Written answers

I am advised by the Revenue Commissioners that the supply of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. In accordance with the VAT Directive the consideration paid for a supply of goods is chargeable to VAT at the time of supply.  The supply of a new motor vehicle is liable to VAT at the standard rate, currently 23%. Under the VAT Directive there is no scope to facilitate the zero rating of this supply at the point of sale on the basis that the customer is registered for VAT. 

As part of its risk based tax compliance programme, Revenue may identify significant or unusual VAT repayment claims and seek further information before processing the payment. Provided the taxpayer provides any requested explanations and documentation, repayments are normally processed very quickly. Revenue’s customer service standard is that 80% of VAT repayment claims are finalised within 10 working days.

Departmental Contracts Data

Questions (67)

Bríd Smith

Question:

67. Deputy Bríd Smith asked the Minister for Finance the monetary value of all work contracted out under the aegis of his Department to external agencies or consultancies for work completed or investigations undertaken in human resources and industrial relations including hiring and interviewing of staff, disciplinary procedures and workplace related issues such as allegations of bullying and so on or dignity at work issues in each of the years 2015 and 2016. [29338/17]

View answer

Written answers

The Department of Finance reports a cost of €492.00 for all work contracted out to external agencies or consultancies for work completed or investigations undertaken in human resources and industrial relations including hiring and interviewing of staff, disciplinary procedures and workplace related issues, for the year 2016. There is a nil value reported for 2015.

The following is a report of the monetary values for said work for offices under the aegis of my department. It was not possible for the Central Bank of Ireland, the National Treasury Management Agency (NTMA), the Financial Services Ombudsman Bureau, Financial Services Ombudsman Council and the Investor Compensation Company Limited to provide the information sought in the time available and therefore I will make arrangements to provide the outstanding information in line with Standing Orders. The NTMA will also provide the information with respect to the National Asset Management Agency and the Strategic Banking Corporation of Ireland.sues such as allegations of bullying and so on or dignity at work issues in each of the years 2015 and 2016

The referred reply under Standing Order 42A.was forwarded to the Deputy

Banking Sector

Questions (68)

Kevin O'Keeffe

Question:

68. Deputy Kevin O'Keeffe asked the Minister for Finance if provision has been made by a bank (details supplied) in its floatation on the market for persons who suffered a combined loss of approximately €0.5 billion in view of the fact that they were misled in making an investment in an investment portfolio; if he will request the bank to allow for this as an unpaid liability and that the attention of potential investors will be drawn to the liability that can occur here; and if he will make a statement on the matter. [29349/17]

View answer

Written answers

I am aware of the matters relating to certain property investment funds that the Deputy has raised, which my officials will continue to monitor.

However, as litigation relating to a number of funds, including those identified by the Deputy, are currently before the courts, it would be inappropriate for me to comment at this time.

Help-To-Buy Scheme

Questions (69)

Brendan Griffin

Question:

69. Deputy Brendan Griffin asked the Minister for Finance his plans to review the first-time buyers grant; and if he will make a statement on the matter. [29373/17]

View answer

Written answers

I assume the Deputy is referring to the Help to Buy Incentive introduced in Budget 2017.

During the debates in the Oireachtas on the Finance Bill 2016, Minister Noonan agreed to commission an independent impact assessment on the effects of the Help to Buy tax incentive on the supply of new homes, house prices and the residential property market generally.

Following a competitive tender process, Indecon Economic Consultants were commissioned to undertake this assessment of the Help to Buy incentive. Work has commenced and the deadline for the submission of the consultant’s report is the end of August 2017. 

Once received, the contents and findings of the report will be considered by officials and presented to me. I will decide on appropriate action(s), if any, to take in relation to its findings, in the context of my deliberations for Budget 2018.

Financial Services Ombudsman

Questions (70)

Michael McGrath

Question:

70. Deputy Michael McGrath asked the Minister for Finance the number of complaints made to the Financial Services Ombudsman in each of the past four each years regarding payday loans; the number of same which were successful; the number of payday lenders that exist here; the value of payday loans in existence; the restrictions in place on the charges on payday loans; and if he will make a statement on the matter. [29402/17]

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Written answers

As the Deputy is aware, anyone wishing to engage in the business of moneylending requires a licence from the Central Bank in accordance with the Consumer Credit Act 1995 and this licence must be renewed every year.

Although a number of firms have approached the Central Bank in relation to offering payday loans in the Irish market, the Central Bank has a robust licencing process in place and no such business model has been licensed by the Central Bank.  The Central Bank assesses every request for authorisation as a moneylender in accordance with the relevant legislation and best practice.

Payday lenders will not be able to passport their services into Ireland without seeking authorisation from the Central Bank. The Central Bank will continue to monitor the licensed moneylender sector closely and to take action where necessary to protect borrowers’ interests.

Accordingly I have been advised by the Financial Services Ombudsman Bureau (FSOB) that the information requested by the Deputy is not captured by product category.  However, in January 2017 the FSOB expanded the categories of conduct complained of in its Case Management System and they regularly review and monitor for any new issues which should be added.

Financial Services Sector

Questions (71)

Michael McGrath

Question:

71. Deputy Michael McGrath asked the Minister for Finance the complaints process for a customer availing of a personal contract plan to finance a purchase of a car; the number of complaints made in each of the past four years; the number of these complaints which were successful; and if he will make a statement on the matter. [29403/17]

View answer

Written answers

As the Deputy is aware it is not appropriate for me to comment on or become involved in an individual borrower's dispute with a financial service provider. 

On the issue more generally, if a customer has made a formal complaint to the financial service provider in question and is not satisfied with the outcome, then the matter should be referred to the Financial Services Ombudsman.

The Financial Services Ombudsman investigates, in an impartial and independent manner, complaints from individual customers and small businesses who have unresolved disputes with financial service providers which are either regulated by the Central Bank or, are subject to the terms of the Consumer Credit Act 1995.  All personal customers, unincorporated bodies, charities, clubs, partnerships, trusts, and limited companies with a turnover of €3,000,000 or less can complain to the Ombudsman.

Investigations by the Financial Services Ombudsman are free of charge to the customer.

The Ombudsman has informed me that since January 2017 they began collecting data regarding Personal Contract Plans (PCPs) and to date no complaints have been received.

Central Bank of Ireland

Questions (72)

Michael McGrath

Question:

72. Deputy Michael McGrath asked the Minister for Finance if consideration has been made to adjust the mandate of the Central Bank to better enable it to attract financial industries and companies here; and if he will make a statement on the matter. [29404/17]

View answer

Written answers

The Central Bank has a very wide and varied mandate as dictated by the statute of the European System of Central Banks, by the Supervisory EU Legal Acts and by the Central Bank Acts.

The Bank does not have a promotional mandate, as a key component of a successful and attractive jurisdiction for the location of financial services activities is a strong and independent regulator with international credibility.

We already have a significant infrastructure of promotional enterprises including IDA Ireland and Enterprise Ireland under the stewardship of my colleague the Tánaiste and Minister for Enterprise and Innovation.

For all of these reasons, I do not propose to adjust the Central Bank’s mandate to enable it to attract financial industries and companies here.

Central Bank of Ireland

Questions (73)

Michael McGrath

Question:

73. Deputy Michael McGrath asked the Minister for Finance the initial budgeted cost of moving the Central Bank to its new headquarters by relevant segments; his estimate of the cost; the amount spent to date, in tabular form; and if he will make a statement on the matter. [29405/17]

View answer

Written answers

I am informed by the Central Bank that the total development cost of the new Central Bank building and moving staff to the Dockland Campus will be circa €140m (inclusive of VAT), in line with the budgeted figure. This figure includes all costs incurred on the project including site purchase, construction, furniture and fit out, IT, Security, Design Team, etc.

I am also informed by the Central Bank that while not all cost negotiations have concluded, as is standard in projects of this scale, the total cost of the project will be within the agreed budget. To date, the Bank has spent €127m on the project.

A detailed breakdown has been published on centralbank.ie and shows total payments made and amounts due for payment on the project as at end of March 2017. All spend is broken down on a supplier basis.

On the conclusion of all cost negotiations, a final detailed breakdown will be published confirming final spend.

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