Written Answers Nos. 125-144
125. Deputy Michael McGrath asked the Minister for Finance if the NTMA has a role in advising or influencing the rate of disposal by the Central Bank of the Government bonds that replaced the Anglo Irish Bank promissory note; and if he will make a statement on the matter. [37306/17]
View answerIn 2013, the Central Bank acquired eight Floating Rate Notes (FRNs) amounting to €25 billion as part of the exchange of assets on the liquidation of IBRC. The Bank intends to dispose of these assets as soon as possible, financial stability conditions permitting.
The sole responsibility for decisions regarding disposals of the Floating Rate Notes rests with the Central Bank, which publishes information in this regard in its Annual Report.
In accordance with the minimum schedule of disposals agreed with the NTMA in the Exchange option Deed the Bank will sell a minimum amount of the FRNs as follows in accordance with the following schedule:
- 2014-2018 €0.5 billion per annum;
- 2019-2023 €1 billion per annum; and
- from 2024 onwards €2 billion per annum until all bonds are sold.
The eight Floating Rate Notes acquired range in maturity dates from 2038 to 2053. The Bank has so far disposed of €8 billion nominal of the Floating Rate Notes; €0.5 billion in 2014, €2 billion in 2015, €3 billion in 2016 and €2.5 billion so far this year. All holdings of the 2038, 2041 and 2043 Floating Rate Notes have now been disposed of. The outstanding balance of Floating Rate Notes is now €17.0 billion.
126. Deputy Clare Daly asked the Minister for Finance further to Parliamentary Question No. 112 of 26 August 2017, the number of years the person continues receiving tax relief at source, TRS, as a non-first-time buyer. [37307/17]
View answerI believe the Deputy intended to refer to Parliamentary Question No. 112 of 26 July 2017.
In my reply on 26 July I provided an overview of section 244 of the Taxes Consolidation Act 1997, which provides tax relief in respect of interest paid by an individual on a loan used for the purchase, repair, development or improvement of his or her main residence or the sole or main residence of his or her civil partner, dependant relative or his or her former or separated spouse, and I set out in some detail the changes made to this section in the Finance Acts of 2009, 2010 and 2012.
In response to the Deputy’s specific question, I am advised by Revenue that tax relief continues to apply up to the end of the current tax year 2017, in respect of interest paid on qualifying loans taken out by either a non-first time buyer or a first time buyer between 1 January 2004 and 31 December 2012. The Deputy will be aware that, as a result of the gradual phasing out of Mortgage interest relief (MIR), tax relief is now available only in respect of interest paid on qualifying home loans taken out between 2004 and 2012 and has been abolished for homes purchased on or after 1 January 2013. MIR is currently due to expire for the remaining recipients on 31 December 2017, however in Budget 2017 the Government’s intention to extend MIR beyond the current end-date of December 2017 on a tapered basis to 2020 was confirmed, in line with the commitment in the Programme for Government.
127. Deputy Michael McGrath asked the Minister for Finance the number of appeals that have been made to the customers appeals panel section regarding a bank (details supplied), in view of the tracker mortgage issue; the number which have been fully upheld, partially upheld and totally dismissed respectively; and if he will make a statement on the matter. [37326/17]
View answerOfficials in the Department referred the Deputy’s question to the bank and received the following response in this regard:
“Under the Bank's Mortgage Redress Programme (MRP), to date there have been a total of 224 appeals to the Customer Appeals Panel (CAP). The Bank has received the decision of the CAP in 207 of these appeals. The following is a breakdown of the decisions of the CAP:
|
Decisions of CAP |
Number |
|
Upheld |
4 |
|
Partly Upheld |
27 |
|
Not Upheld |
176 |
Under the Bank’s subsequent Mortgage Product Review Group (MPRG), to date there have been a total of two appeals. The Bank has yet to receive a decision of the CAP on these two appeals.”
128. Deputy Michael Healy-Rae asked the Minister for Finance his plans to retain the 9% VAT rate for the hotel sector (details supplied); and if he will make a statement on the matter. [37406/17]
View answerAs the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
129. Deputy Eoin Ó Broin asked the Minister for Finance the mechanism in place for those seeking to recoup their first-time buyers grant following an eligible house purchase if the builder or developer is not registered as a qualified contractor with the Revenue Commissioners and refuses to engage with the householder. [37458/17]
View answerSection 477C of the Taxes Consolidation Act 1997 provides for the Help-to-Buy (HTB) scheme. It states that in order for a first time purchaser to be eligible for the HTB scheme, he or she must enter into a contract with a qualifying contractor. If first-time purchasers do not purchase from a qualifying contractor, it is not an eligible house purchase.
However, I am advised by the Revenue Commissioners that to consider the matter further, if the Deputy could provide all relevant details around the circumstances of any particular relevant property purchase to them, they will arrange to have the matter looked into.
130. Deputy Barry Cowen asked the Minister for Finance the estimated cost of reintroducing the rent relief tax credit in budget 2019 on the same basis as pre-2010. [37474/17]
View answer181. Deputy Barry Cowen asked the Minister for Finance the estimated cost of reintroducing the rent tax credit that was suspended in 2010 for all persons in the private rental market. [38122/17]
View answerI propose to take Questions Nos. 130 and 181 together.
I am advised by Revenue that the number availing of the rent relief tax credit, and the associated cost to the Exchequer, are available on the Revenue website at http://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx. The credit is available to those paying for private rented accommodation. This includes rent paid for flats, apartments or houses. It does not include rent paid to local authorities. The credit is currently only available to a person who was renting on 7 December 2010. This tax credit will cease to be available after 31 December 2017.
I am advised by Revenue that, as the rent relief tax credit is in the process of being phased out, and no new claimants have qualified for the relief since 2010, tax returns do not provide a reliable basis for Revenue to accurately predict either the numbers of tenants that could be eligible to claim a rent credit were it to be re-introduced post 2017 for all tenants, or the degree to which potential claimants could absorb the full amount of the credit. Therefore, there is no reliable basis available to Revenue on which to estimate the potential cost of a rent credit reintroduction.
At the same time, it may be of assistance to the Deputy to note that, according to Census 2016 data, the private rented sector amounts to approximately 310,000 units. For comparison, in 2010 the rent relief tax credit cost €82.8 million in respect of 189,000 claimants. However, all of the individuals recorded on the Census as renting these 310,000 units may not qualify for rent relief tax credit or be able to absorb the relief in full if it were available, and so this would not be a robust basis on which to estimate a costing.
131. Deputy Bríd Smith asked the Minister for Finance the number and acreage of NAMA-owned properties and landbanks by property type (details supplied) and by county, in tabular form. [37576/17]
View answerThe Deputy will be aware that NAMA does not, in general, own land or property. Rather, NAMA’s role is as a secured lender and the properties which NAMA holds security over continue to be owned and managed by the original property owner, or insolvency practitioner where one is appointed.
In relation to a breakdown of NAMA’s remaining portfolio, I would direct the Deputy towards page 46 of NAMA’s Annual Report 2016, which was published on 1 June 2017 and is available via: https://www.nama.ie/about-us/publications/annual-reports/. The NAMA Annual Report 2016 outlines the geographic and sectoral distribution of NAMA’s remaining portfolio. The relevant information is provided below in Tables 1 and 2 below for the Deputy’s ease of reference. As outlined in Table 2, 64% of NAMA’s remaining portfolio is located in Dublin.
A total of 18% of NAMA’s remaining portfolio is located in the rest of the country, excluding Dublin. A county-by-county breakdown of this portfolio is included in Table 3. Of the Irish assets located outside of Dublin, 86% are located in the cities of Cork and Galway or the counties in the Dublin commuter belt. I am advised by NAMA that outlining sectoral distribution of NAMA-secured assets on a county-by-county basis and in the breakdown categories requested by the Deputy could identify specific property assets and their owner, which is prohibited under the NAMA Act 2009.
Table 1: Remaining Portfolio – Sectoral Distribution - As at 31 Dec 2016
|
Remaining Portfolio Sectoral Distribution |
Total % |
|
Residential |
17% |
|
Development |
21% |
|
Office |
13% |
|
Land |
30% |
|
Retail |
11% |
|
Hotel & Leisure |
5% |
|
Industrial |
1% |
|
Non Real Estate |
2% |
Table 2: Remaining Portfolio – Geographic Distribution - As at 31 Dec 2016
|
Remaining Portfolio Geographical Distribution |
Total % |
|
Dublin |
64% |
|
Rest of Ireland (excl. Dublin) |
18% |
|
London |
10% |
|
Rest of UK |
2% |
|
Rest of World |
4% |
|
Non Real Estate |
2% |
Table 3: Remaining Portfolio – Rest of Ireland (Excl. Dublin) – County by County Distribution - As at 31 Dec 2016
|
County |
Total % |
|
Cork |
37.68% |
|
Kildare |
21.72% |
|
Wicklow |
16.19% |
|
Galway |
5.42% |
|
Meath |
4.76% |
|
Sligo |
3.63% |
|
Westmeath |
2.70% |
|
Louth |
2.43% |
|
Limerick |
1.24% |
|
Waterford |
1.12% |
|
Wexford |
0.97% |
132. Deputy Mick Barry asked the Minister for Finance when the report commissioned by his Department and the Department of Employment Affairs and Social Protection on bogus self-employment practices in the construction sector and resultant losses incurred in PAYE and PRSI will be published; and if he will make a statement on the matter. [37596/17]
View answer162. Deputy Joan Burton asked the Minister for Finance the position regarding the drafting, completion and publication of the report investigating bogus self-employment; and if he will make a statement on the matter. [38036/17]
View answer173. Deputy Joan Burton asked the Minister for Finance when the results of the consultation process into the impact of bogus self-employment arrangements will be published; and if he will make a statement on the matter. [38049/17]
View answerI propose to take Questions Nos. 132, 162 and 173 together.
The consultation process on "the use of intermediary-type employment structures and self-employment arrangements and their impact on tax and PRSI" invited submissions from interested parties on possible measures to address the loss to the Exchequer that may arise under two sets of arrangements:
- where an individual, who would otherwise be an employee, establishes a company to provide his or her services, and
- where an individual, who is dependent on, and under the control of, a single employer in the same manner as an employee, is classified as a self-employed individual.
I am not in a position to give the Deputy an exact date for publication but I am informed that the drafting and editing of the report, being undertaken by a working group of officials, is virtually complete so I expect to receive it shortly.
As soon as it reaches me, and my colleague the Minister for Employment Affairs and Social Protection, we will consider its contents and then I expect we will publish it.
133. Deputy Marc MacSharry asked the Minister for Finance the frequency of meetings between his Department and the special liquidators of the Irish Bank Resolution Corporation; when the last meeting took place; if regular updates are provided at such meetings on costs charged and incurred by the special liquidators; the oversight, examination and decision making undertaken regarding the costs charged and incurred by the special liquidators by his Department; and if he will make a statement on the matter. [37603/17]
View answerFollowing the liquidation of IBRC in February 2013 officials met with the Special Liquidators on a very frequent basis; however, given the progress being made on the liquidation, the frequency of these meetings has reduced as is to be expected. There were eight update meetings held between my officials and the Special Liquidators in 2016 and three update meetings have taken place so far this year. I am advised by my officials that the most recent formal meeting with the Special Liquidators took place on 6 June 2017 and that the next formal meeting is due to take place before the end of September. Officials also speak regularly with the Special Liquidators outside of a formal meeting setting as matters arise. At these formal meetings the Special Liquidators update officials on the progress of the liquidation and bring to their attention any issues which they feel my Department should be made aware of during these meetings. Should my officials have any queries in relation to the professional fees associated with the liquidation or other costs incurred then this matter would be raised during these update meetings.
In addition to regular meetings the Department also receives and publishes regular progress update reports in relation to the Special Liquidation. These reports include a comprehensive update on fees and costs incurred as part of the Special Liquidation. The latest report was provided to the Department in May 2017 and covered the period to the end of 2016. The report is published on the Department's website at http://www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf.
134. Deputy Marc MacSharry asked the Minister for Finance the costs charged and incurred by the special liquidators of the Irish Bank Resolution Corporation by charging rates per hour or parts thereof; the number of hours or parts thereof actually charged by the types of work performed; the descriptions of work performed; the number of persons performing the work in respect of each of the foregoing categories from 7 February 2013 to date in 2017, in respect of each grade (details supplied); and if he will make a statement on the matter. [37604/17]
View answerI would like to draw the Deputy's attention to the most recent progress update report on the Special Liquidation of IBRC which was published on 5th May 2017 and which is available on the Department of Finance website: http://www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf. The fees and all other third party costs as at 31 December 2016 are outlined in detail in this report.
The costs of the Special Liquidators for the liquidation from 7 February 2013 to 31 December 2016 stood at €123.11m. This figure is net of a rebate of €5m which the Department of Finance agreed with KPMG. This €123.11m relates to fees for work carried out by the KPMG special liquidation team and the scope of work undertaken by the Special Liquidators is detailed in each of the four publicly available progress update reports which have been published since the special liquidation of IBRC in 2013. The fees are net of VAT and outlays. In addition, a further €4.56m was incurred by the special liquidation team which has been recovered from NAMA.
While I am advised by the Special Liquidators that they are not in a position to provide details in relation to the number of persons, by grade, performing the work on the special liquidation given the commercial sensitivities around this information, they have provided a more detailed breakdown of the €123.1m of fees incurred to 31 December 2016:
|
Fees to 31 December 2016 |
Fees €m |
|
Workstreams |
Total |
|
Deal |
30.14 |
|
Finance, operations, compliance and creditor adjudications |
17.74 |
|
Loan management |
16.41 |
|
HR/IT/Facilities |
8.28 |
|
Loan migration |
16.72 |
|
Interest remediation |
20.63 |
|
Taxation |
9.32 |
|
Legal and litigation |
4.30 |
|
Commission of investigation |
2.71 |
|
CBI tracker mortgage examination |
0.80 |
|
Deposits and ELG |
1.06 |
|
Discount applied |
(5.00) |
|
Total |
123.11 |
|
NAMA integration (recharged by bank to NAMA) |
4.56 |
The most recent progress update report also details the cost management undertaken by the Special Liquidators. These are the various steps taken by the Special Liquidators when hiring legal and third party advisors/contractors to ensure costs were managed efficiently and effectively and minimised while ensuring the orderly wind up of IBRC.
I am further advised by the Special Liquidators that it is not possible for them at this time to confirm or estimate the final fees of the liquidation as there remains a number of tasks in the liquidation to be completed including the ongoing management of circa 175 legal cases, the completion of the creditor adjudication process, the work with the Commission of Investigation, the management of the remaining loan book and the realisation of all remaining assets.
135. Deputy Marc MacSharry asked the Minister for Finance if his Department or its agents or the Comptroller and Auditor General has examined the procurement processes, accounting, controls and oversight of the costs of the special liquidators of the Irish Bank Resolution Corporation; the results of such examinations; the location in which they are published; and if he will make a statement on the matter. [37605/17]
View answerNeither the Department of Finance nor the Comptroller and Auditor General have any role in relation to examining the procurement processes of the Special Liquidators. The liquidation of IBRC is similar to any other liquidation with the exception that the Special Liquidators have been appointed by the Minister under the Irish Bank Resolution Corporation Act 2013 rather than appointed by the Courts. As such the Special Liquidators are obliged to follow normal Companies Acts priorities throughout the liquidation process and act in a manner that ensures the assets of IBRC are managed in a way which maximises the overall return for all its creditors including the State subject to the provisions of the Irish Bank Resolution Corporation Act 2013.
Notwithstanding this, the Department of Finance engages regularly with the Special Liquidators on the issue of costs as part of its regular engagement with the Special Liquidators. Page 45 of the most recent progress update report published by the Department sets out the various cost management activities undertaken by the Special Liquidators and the nature of the on-going interaction with the Department in this regard. A copy of that report can be accessed at: http://www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf.
136. Deputy Marc MacSharry asked the Minister for Finance if he will furnish a copy of the contract between his Department and the special liquidators of the Irish Bank Resolution Corporation; and if he will make a statement on the matter. [37606/17]
View answer137. Deputy Marc MacSharry asked the Minister for Finance if he will furnish a copy of the indemnity provided by his Department to the special liquidators of the Irish Bank Resolution Corporation as part of the conduct of the liquidation of the Irish Bank Resolution Corporation and correspondence relating thereto; and if he will make a statement on the matter. [37607/17]
View answerI propose to take Questions Nos. 136 and 137 together.
In February 2013 Kieran Wallace and Eamonn Richardson of KPMG were appointed on foot of the Special Liquidation Order by the then Minister for Finance as Special Liquidators of IBRC and were tasked with managing the winding-up of the institution. This process is ongoing. The Special Liquidators are obliged to comply with the instructions given to them by the Minister for Finance and act in the interests of the taxpayer under the provisions of the IBRC Act. The primary set of instructions were issued to the Special Liquidators on 7 February 2013 and they set out details in respect of the manner in which the winding up of IBRC was to proceed. A copy of this instruction can be accessed at the following link: http://opac.oireachtas.ie/AWData/Library3/FINdocslaid08022013_143303.pdf. Further Ministerial instructions relevant to the liquidation of IBRC were issued on 10 May 2013, on 20 July 2013 and on 24 April 2014. Copies of these Ministerial Instructions were laid before the Houses and can also be found online on the Oireachtas library database.
I am advised that the specific correspondence and documentation sought by the Deputy in relation to the Special Liquidation of IBRC contains conmmercially sensitive information given the ongoing nature of the liquidation so I am therefore not in a position to publish such records at this time.
138. Deputy Marc MacSharry asked the Minister for Finance if there has been an increase in the rates of fees charged by the special liquidators of the Irish Bank Resolution Corporation since the date of their appointment; if an increase in the rates of fees has been approved directly or by reference to NAMA fee rates; and if he will make a statement on the matter. [37608/17]
View answerThere has been no increase in the rates of fees charged by the Special Liquidators of Irish Bank Resolution Corporation Limited since the date of their appointment. The rates being charged are based on NAMA-negotiated rates for relevant services. These NAMA rates were put in place following a competitive tender conducted by NAMA.
139. Deputy Mattie McGrath asked the Minister for Finance if he will address a matter (details supplied) regarding the help-to-buy scheme; and if he will make a statement on the matter. [37680/17]
View answerSection 477C of the Taxes Consolidation Act is the legislation that provides for the Help-to-Buy initiative. The legislation states that in order for a first-time purchaser to be eligible for Help to Buy, he or she must enter into a contract with a Qualifying Contractor. If first-time purchasers do not purchase from a Qualifying Contractor, it is not an eligible house purchase.
For reasons of taxpayer confidentiality, I am advised by Revenue that they cannot comment on the tax affairs of an individual taxpayer or business. However, I am advised by Revenue that discussions designed to facilitate an application from the persons concerned under the Help-to-Buy scheme are being actively pursued.
140. Deputy Niamh Smyth asked the Minister for Finance the number of new positions made available in the Central Bank specifically to deal with Brexit; the types of new roles created; the number of vacancies left to be filled; and if he will make a statement on the matter. [37736/17]
View answerI am informed that the Central Bank Commission approved an additional complement for 2017 to circa 1,800 staff, which will be a target net increase of 200 staff on the total at end 2016. This expansion included dedicated resources of an additional 28 staff to address specific Brexit-related new business needs within existing divisions. Of these 28 staff, 18 have been allocated to supervisory divisions to address specific Brexit-related new business needs within existing divisions, while the remaining 10 have been allocated to the Central Banking pillar.
Furthermore, at its recent June 2017 meeting, the Central Bank Commission approved an additional 36 resources principally to support increases in Brexit-related authorisation/supervisory activity, as well as to support extensions to the post-crisis regulatory framework under the European Commission’s November 2016 Risk Reduction Measures package and the proposed new EU framework for the recovery and resolution of central counterparties. Resources will be deployed across both Financial Regulation and Central Banking.
Recruitment is planned to be undertaken on a phased basis, with the hiring process already commenced for some of the roles, and it is expected that the majority of such roles will be filled by 31 December 2017.
141. Deputy Niamh Smyth asked the Minister for Finance the way in which his Department is improving services and increasing supports for persons with disabilities during 2017. [37737/17]
View answerI understand that the Deputy's question is focused in particular on my Department's Website, Audio & Telecommunications Services which are available to external customers and users.
I am pleased to confirm that, in line with the commitments set out in our Customer Charter, our newly relaunched Departmental website has been designed with the aim of achieving conformance Level AA of the Web Content Accessibility Guidelines and the relevant National Disability Authority IT accessibility guidelines.
As previously set out in my response to Parliamentary Question No. 161 of 13 July 2017, my Department is aware of its obligations as set out in the Disability Act of 2005. In line with the legislation a Disability Liaison Officer (DLO) and Access Officers are in place within the Department. The contact details for these officers are available on the Department's website:
http://www.finance.gov.ie/obligations/access-officers-for-the-department/.
The Department works closely with the National Disability Authority (NDA) in ensuring its compliance with the legislation in relation to the employment of persons with disabilities and since 2014, the Department's obligations under the legislation have been satisfied.
The DLO attends bi-monthly Disability Liaison Officer Network meetings to share knowledge and assist other DLOs across the Civil Service, as well as engaging with staff in accessing training and learning events, where needed. An example of engagement includes, during 2016 and 2017, the Department employing speed typists to assist staff at various learning events.
Over the last year, a major refurbishment project was undertaken by OPW in Government Buildings on Merrion Street. As part of this project, electronic access doors have been installed to assist the movement of staff across our campus. Furthermore, ergonomic assessments have been undertaken for staff in both the Merrion Street campus and in our offices in Tullamore. This assessment programme will be rolled out to staff at other locations in the coming months.
142. Deputy Niamh Smyth asked the Minister for Finance if his attention has been drawn to the fact that persons here are getting insurance quotes three times cheaper in Northern Ireland; his plans regarding the rising cost of motor insurance; when persons will see this intervention in their pockets; and if he will make a statement on the matter. [37738/17]
View answerDiffering costs of insurance between different markets and jurisdictions is an issue that exists across the EU. This arises for a range of reasons such as for instance differences in the size and volume of insurance awards. While I cannot comment on the particular circumstances of the quotations that the Deputy references, and if such differences are typical, I would note that Northern Ireland’s motor insurance market is a distinct and separate one, and as a result differences in pricing will inevitably arise.
The European Commission’s Green Paper on Retail Financial Services considered this issue and the provision of insurance and other retail financial services on a cross-border basis. With regard to the provision of insurance, it noted that “there is evidence of market fragmentation in the differing prices for identical or similar products available in different domestic markets, even from the same provider.” It also acknowledged that: “differences in prices can be attributed to factors such as varying conditions in domestic economies, uneven levels of purchasing power, financial or institutional structures (e.g. taxation, regulation or supervision), or differing funding costs, value propositions (sometimes related to product tying or packaging) and pricing structures in local markets. For insurance (specifically motor insurance) variations in the costs and risks of providing cover can vary substantially between the different Member States, which can justify some price differences.” It is primarily for these reasons therefore that differences may exist between two separate markets.
With regard to addressing the cost of insurance, my predecessor as Minister for Finance, Deputy Michael Noonan, established the Cost of Insurance Working Group in 2016 in order to examine the factors contributing to the increasing cost of insurance and identify 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 problem of rising motor insurance premiums and as a result, a broad range of issues affecting the cost of motor insurance were examined.
The Working Group’s Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are clearly set out in an Action Plan. 45 of these action points are due to be implemented by the end of this year with the remainder scheduled for completion before the conclusion of 2018.
There is a commitment within the Report that the Working Group will prepare quarterly updates on its progress and the first such update was published in early May. The second quarterly update was published on the Department's website on 21 July 2017 and shows the progress to date on the overall implementation of the recommendations, with a particular focus on the 17 action points which were due for completion in the second quarter of 2017. All 17 of these action points have been completed by their deadline. A further report for the third quarter will issue in the coming weeks.
I believe that the implementation of the Report on the Cost of Motor Insurance will make a difference to the pricing of insurance premiums over the next 18 months. I also believe that the Setanta judgment, by finding that MIBI is not liable to meet third party claims, removes a major uncertainty from industry, which I would expect to be reflected in pricing in the short to medium term.
Finally, it should be noted that the most recent CSO data (for August) indicates that motor insurance premiums have reduced by 14% year-on-year. While CSO statistics indicate a greater degree of stability on an overall basis, these figures only represent a broad average and therefore there are some people who may still be seeing increases for various reasons. I am hopeful that greater stability in pricing will continue to occur, and that premiums will continue to fall from the very high level of last year.
143. Deputy Kevin O'Keeffe asked the Minister for Finance the position regarding an application (details supplied). [37753/17]
View answerI am advised by the Revenue Commissioners that the contractor from whom the persons concerned purchased the property is not on the register of approved contractors. I am also advised that there is some doubt in relation to the eligibility of the property in question for the Help-To-Buy scheme. I understand that Revenue is making direct contact with the persons concerned to make clear the issues and concerns that are preventing the approval of the application from the persons concerned.
144. Deputy Sean Sherlock asked the Minister for Finance if his attention has been drawn to the rapid increase in personal contract plan, PCP, credit instruments in the motor industry; if his Department has assessed the default risk of such instruments; and if banks, financial institutions and other financial subsidiaries such as car manufacturers themselves have been sufficiently regulated by the Central Bank to lend to car buyers in the market. [37757/17]
View answerPersonal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.
Hire-purchase providers are not required to seek authorisation from the Central Bank or the CCPC for the provision of hire-purchase agreements. In turn, hire-purchase providers are not subject (for the provision of a hire purchase agreement) to the requirements of the Consumer Protection Code 2012, which sets out requirements regarding the sales process, including suitability and affordability requirements and requirements regarding complaints handling.
The majority of consumer hire purchase agreements are provided through ‘credit intermediaries’.
The CCPC is responsible under the Consumer Credit Act 1995, for the authorisation of credit intermediaries, some of whom may sell PCPs to consumers on behalf of a finance company. A "credit intermediary" is defined as "a person...who in the course of his business arranges or offers to arrange for a consumer the provision of credit or the letting of goods in return for a commission, payment or consideration of any kind from the provider of the credit or the owner, as the case may be".
The CCPC issues licenses to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation which is available on the CCPC website www.ccpc.ie. The CCPC deals with complaints about the advertising of Credit Agreements and the advertising of car finance on credit intermediary websites and in the media. It also has a specific statutory remit to provide personal finance information and education to consumers.
The CCPC has conducted research into the car market and car finance sectors, and has conducted numerous public awareness campaigns on the issue of car finance in recent years. It’s most recent campaign, which ran in June/July 2017, focused on car finance and was specifically aimed at providing information to consumers on issues in relation to PCPs, such as the fact that the consumer does not become the legal owner of the car until they make the final payment.
On 17 July the CCPC announced that it had commenced a study of the PCP car finance market. I have been informed that the CCPC’s study is examining the experiences of consumers and assessing the information provided to them at the point-of-sale. The study will also analyse consumers’ understanding of PCPs, the structure of the product, the options available to consumers at the end of the agreement, and the protections available to PCP consumers under the existing legislative framework. I await the outcome of the study.
The Deputy may also wish to note that if a consumer has concerns regarding the activities of credit intermediaries, they may wish to contact the CCPC. The Financial Services Ombudsman can also investigate complaints from individual consumers about credit intermediaries.
