Written Answers Nos. 165-184
165. Deputy Joan Burton asked the Minister for Finance the discussions he has had with his ECOFIN colleagues regarding eurozone governance structures proposed by President Emmanuel Macron of France; if the matter will be discussed at the next ECOFIN meeting on 16 September 2017; and if he will make a statement on the matter. [38040/17]
View answerThe proposals on future Eurozone governance structures as outlined by the French President are part of a wider debate that is taking place on the Future of Europe.
On 1 March 2017, the European Commission published a White Paper on the Future of Europe. As part of this White paper, the European Commission published five reflection papers on topics such as Globalisation, Future of EU Finances, the Social Dimension of the EU and the future of EU defence. One of these Reflection papers entitled, “The Reflection Paper on the Deepening of Economic and Monetary Union (EMU)” was published on 31 May 2017 and contains a number of potential ideas for the future direction of the Economic and Monetary Union.
These potential ideas will be discussed at the Informal ECOFIN meeting taking place on 15-16 September in Tallinn which I will be attending.
166. Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to the comments recently by a person (details supplied) regarding credit unions lending their reserves to approved housing bodies in view of the considerable funds credit unions have on deposit in banks here; his plans to ensure credit union deposits are put to a more productive use in the economy; and if he will make a statement on the matter. [38041/17]
View answerMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within its independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
I have been informed by the Central Bank that in line with ensuring that regulations are kept up to date and appropriate, the Central Bank is reviewing the investment regulations for credit unions. This review is being undertaken in the context of the following legislative provisions:
- the Central Bank’s statutory mandate to regulate and supervise credit unions with a view to ensuring the protection by each credit union of the funds of its members and the maintenance of the financial stability and well-being of credit unions generally;
- the objects of credit unions set out in the 1997 Act; and
- the legislative requirement, set out in section 43 of the 1997 Act, for credit unions to ensure investments do not involve undue risk to members’ savings.
Under the existing regulations credit unions are permitted to invest in a range of specified investment classes which includes government securities, deposits and bank bonds and collective investment schemes made up of these instruments. Investments in these classes of investments are subject to specified maturity and concentration limits. The Central Bank is reviewing the regulations to consider whether it is appropriate and prudent to facilitate investment by credit unions in other investments, such as for example social housing, by broadening the permitted investment classes in the regulations.
Following this review of the investment framework for credit unions, the Central Bank published consultation paper 109 “Consultation on Potential Changes to the Investment Framework for Credit Unions” (CP109) on 11 May 2017. CP109 sets out potential changes to the investment framework for credit unions, along with a Regulatory Impact Analysis (RIA), and sought views from credit unions and other sector stakeholders on the potential changes outlined, including the potential for credit unions to make investments in approved housing bodies.
If regulations provided for investment in social housing each individual credit union would be required to make an independent decision on whether or not it would provide such funding. Credit unions, in investing in long term investments, need to accommodate the short term nature of their funding (member deposits) and related asset liability matching and liquidity considerations. CP109 identified potential risk and risk mitigants for investments in approved housing bodies and asked for feedback on the appropriateness of credit unions undertaking such an investment. The consultation period closed on 28 June 2017 and the Central Bank has received 74 submissions from a broad range of respondents. The Central Bank will consider the entirety of the submissions received prior to finalising changes to the investment framework.
The Government recognises the important role of credit unions as a volunteer co-operative movement in this country. The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to continue to support a strengthened and growing credit union movement.
167. Deputy Joan Burton asked the Minister for Finance if he has satisfied himself that the Central Bank's order to lending banks to return affected customers to an appropriate tracker rate of interest is being carried out; if his attention has been drawn to the fact that banks are free to come up with their own offers of compensation and that many banks are not offering customers effective redress; and if he will make a statement on the matter. [38042/17]
View answerThe Central Bank of Ireland published a report providing an update on the Examination of Tracker Mortgage Related Issues on 23 March last
(https://www.centralbank.ie/news-media/press-releases/update-report-tracker-mortgages).
As set out in the report,
- approximately 9,900 customer accounts had been identified as impacted by lenders, as part of the Examination, as at end February 2017;
- lenders had commenced contacting impacted customers identified as at end February 2017 and had rectified the interest rates applied to such impacted customers’ accounts, thus stopping further detriment (as at the date of the report, interest rates had been rectified on more than 90% of the accounts that require such rectification);
- to end February 2017, approximately €78m had been paid in redress and compensation to approximately 2,600 impacted customers identified as part of the Examination.
As also set out in the March report, the Central Bank invoked its powers under Section 22 of the Central Bank (Supervision and Enforcement) Act to set specific timelines for lenders to complete Phase 2 (the “Review Phase”) of the Examination and in line with those timelines, it expects the vast majority of impacted customers to be identified by lenders by end September 2017.
The Central Bank does not have the statutory power to set compensation levels or to compel lenders to implement redress and compensation programmes in respect of failures that occurred prior to the introduction of the Central Bank (Supervision and Enforcement) Act 2013. However, as part of the Examination framework, where customer detriment is identified the Central Bank has clearly articulated its expectations of lenders to provide appropriate redress and compensation to impacted customers in line with prescribed Principles for Redress. The Principles for Redress are designed to ensure that impacted customers receive appropriate redress and compensation in a timely manner.
Key elements of the Central Bank’s expectations in respect of redress and compensation for impacted customers include:
- any harm is stopped at the earliest possible time after each group of impacted customers is identified;
- the interest rates applied to impacted customers’ accounts revert to the appropriate tracker interest rate or impacted customers are given the opportunity to revert to such a rate where relevant;
- redress will be provided to impacted customers to return them to the position they would have been in had lenders’ failures not occurred;
- reasonable compensation, that reflects the detriment suffered by individual customers, is provided;
- redress and compensation is to be paid to impacted customers up front at the point of offer and compensation cannot be reduced by virtue of a customer lodging an appeal; and
- an additional payment is to be provided to impacted customers at the point of offer to enable them to take independent professional advice regarding the redress and compensation offers made to them.
As the Examination continues to progress, the Central Bank continues to challenge the position a lender has taken in relation to particular groups of customers to ensure the fair treatment of tracker mortgage customers.
The Examination Framework also provides that lenders should establish an independent appeals process to deal with customers who are dissatisfied with any aspect of the redress and compensation offers that they receive from lenders in respect of these matters. As the Principles for Redress provide that all redress and compensation payments are made to customers on an up-front basis, customers can accept the redress and compensation offered and still make an appeal. In addition, the impacted customer has the option of bringing a complaint to the FSO or initiating court proceedings.
The Central Bank also advises that a further update report on the Examination will be issued later in the autumn.
168. Deputy Joan Burton asked the Minister for Finance his plans to ensure that mortgage holders, tenants and SMEs that have loans or credit from non-bank lenders or vulture funds are fully protected; if he will consider extending the provisions of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 in this regard; and if he will make a statement on the matter. [38043/17]
View answerAs the Deputy will be aware, the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was enacted in July 2015. It was introduced by the previous Government to fill the consumer protection gap where loans were sold by the original lender to an unregulated firm. The Act introduced a regulatory regime for a new type of entity called a 'credit servicing firm'. Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'.
Under the Act, purchasers of loan books must either be regulated by the Central Bank themselves or else the loans must be serviced by a credit servicing firm that is regulated by the Central Bank. The significant point is that the regulation is focussed at the point of contact with the customer. Therefore relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes (such as the Consumer Protection Code, Code of Conduct on Mortgage Arrears) issued by the Central Bank of Ireland and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which came into operation in July 2016. It is also important to highlight that the transfer of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the original contract.
The Central Bank of Ireland’s SME Lending Regulations (the Regulations) came into effect and apply to regulated entities from 1 July last, except for credit unions who are required to comply since 1 January 2017. The Regulations aim to strengthen protections for SMEs from the existing SME Code in place, while also facilitating access to credit by introducing specific new additional requirements that regulated lenders must comply with.
The Regulations introduce specific requirements for regulated lenders (and credit servicing firms where relevant), including:
- Giving SME borrowers greater transparency around the application process;
- Providing SME borrowers with reasons for declining credit, in writing, that are specific to their application;
- Providing greater protections for guarantors;
- Contacting SME borrowers who have been in arrears for 15 working days;
- Warning SME borrowers if they are in danger of being classified as not co-operating; and
- Expanding the grounds for appeal and setting up an internal appeals panel.
The Central Bank has published a short guide for SMEs and guarantors on the protections available for them under the Regulations which is available on the Central Bank website.
The SME Regulations apply to all regulated financial services providers providing credit to SMEs in Ireland. By virtue of the Credit Servicing Act, this means these protections also apply where the loan was granted by a regulated entity but has since been transferred to an unregulated entity, and is being serviced by a credit servicing firm.
I would highlight that tenant relations are governed by multiple pieces of legislation mainly under the aegis of my colleague, the Minister for Housing, Planning, Community and Local Government.
My Department will continue to keep all relevant legislation under review in order to ensure that borrowers whose loans have been sold are properly protected and do not lose any protections that they previously enjoyed. In addition, the Department of Finance expects that the Central Bank, as regulator of credit servicing firms, will be vigilant in this area and raise any specific instances where they have found consumers have not had their protections upheld or that their positions have been disadvantaged.
169. Deputy Joan Burton asked the Minister for Finance the funding that has been made available through the Ireland Strategic Investment Fund for social and affordable housing provision; if he has satisfied himself with the rates of interest being charged to borrowers through the fund; if he is reviewing the operation of the mechanisms through which credit is accessed from the fund; and if he will make a statement on the matter. [38044/17]
View answerThe NTMA has informed me that in line with its statutory mandate, the Ireland Strategic Investment Fund (ISIF) is examining opportunities for investments that have the potential to support increased supply of housing. These include near-term pipeline housing projects in the build-to-rent sector and student accommodation along with investments in housing–related enabling infrastructure.
To date the Fund has committed more than €360 million across investments in Activate Capital, Ardstone Residential Partnership and Bancroft. Additionally the fund has invested a further €150 million in more general property investments. In the area of social and affordable housing the fund has invested in the DAD Property Fund Ltd who recently purchased 131 apartments in the New Bancroft Hall apartment block in Tallaght. The operation of the apartment block will comprise an element of social and affordable housing, alongside the open-market rental component.
The interest rate charged to borrowers must meet the risk–adjusted commercial return requirement of ISIF’s “double bottom line” mandate. Therefore, the interest rate applied to any individual debt financing arrangement relates to the level of risk and other investment factors in the underlying proposal.
The Fund is continuing to examine the feasibility of an ‘off-balance’ sheet mechanism to facilitate investment in social housing, while also considering any initiatives which cumulatively can make a contribution to increased housing output.
170. Deputy Joan Burton asked the Minister for Finance if he has asked the Central Bank to procure an independent assessment of the arrears and negative equity loan books of the banks in view of the recent programme for Government commitment; and if he will make a statement on the matter. [38045/17]
View answerThe Deputy will be aware that the Central Bank has an ongoing role in monitoring the level of arrears and negative equity on mortgages. The Programme for a Partnership Government contains a range of commitments in the broad housing and banking area and my Department regularly engages with the Central Bank on all the Programme for Government Commitments which will impact on the Central Bank and its role in relation to mortgages.
In this context, at the end of 2016 the Central Bank produced a report on mortgage arrears:-
(http://www.finance.gov.ie/wp-content/uploads/2017/08/CBI-Mortgage-Arrears-Report-FINAL.pdf).
That report provides a detailed assessment of mortgage arrears in banks and non-bank entities and includes analysis on mortgage restructuring activity and the range of solutions offered that may affect borrowers' capacity to remain in their primary residence. The report notes that progress on mortgage arrears is well established and clearly moving in the right direction.
This downward trend in mortgage arrears has been maintained and the most recent Central Bank data in respect of the first quarter of 2017:
(https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/2017q1_ie_mortgage_arrears_statisticse2a9c5134644629bacc1ff0000269695.pdf?sfvrsn=8)
indicates that 53,100 primary dwelling mortgage accounts (7.2% of total) are more than 90 days in arrears. This represents the fourteenth consecutive quarterly decline in this key arrears indicator. In terms of negative equity, table 7 of the most recent Central Bank's Household Credit Market Report
(https://www.centralbank.ie/docs/default-source/publications/household-credit-market-report/household-credit-market-report-2017h1.pdf?sfvrsn=2)
estimates that 12 per cent of PDH loans were in negative equity as of June 2016. The number of mortgages in negative equity (most of which are performing) have been reducing and this has important implications for the wider economy such as improving mobility amongst those affected, potential greater spend on home improvements and maintenance, and increased consumption via the wealth effect.
171. Deputy Joan Burton asked the Minister for Finance when he expects the European Commission to make a final report on the tax affairs of a company (details supplied); and if he will make a statement on the matter. [38046/17]
View answerThe European Commission published the Final Decision in the Apple State aid case in December 2016.
This was sent to Ireland at the end of August 2016.
Ireland does not accept the Commission's analysis and the State has lodged an application with the General Court of the European Union to annul the whole Decision.
It will likely be several years before the matter is ultimately settled by the European Courts.
172. Deputy Joan Burton asked the Minister for Finance the discussions his Department has had with the European Investment Bank and other Departments to establish an off-balance sheet special purpose vehicle to draw down funding from the EIB to facilitate large scale mixed social and private residential development; and if he will make a statement on the matter. [38047/17]
View answerThe Ireland Strategic Investment Fund (ISIF) and the wider NTMA are continuing to examine the feasibility of establishing a funding vehicle, in conjunction with the private sector, which could facilitate investment in social and affordable housing. The objective is to assess the feasibility of an 'off-balance' mechanism to facilitate investment in social housing which is additional to that being provided directly by the State and which does not impact on the General Government Balance.
Important preparatory work has been completed by ISIF in conjunction with my Department, the Department of Housing, Planning, Community and Local Government, CSO and EUROSTAT. As part of this process there have been clarifications on the balance sheet treatment of such a fund through discussions with EUROSTAT, the CSO and the EIB.
Further detailed work is on-going in ISIF in relation to the commercial viability of such a fund and in terms of identifying investable private sector opportunities and platforms to deliver on the potential in this area.
Initial discussions with the EIB have taken place, and these have explored possible EIB participation in funding the housing model. These initial discussions indicate that the EIB is interested in supporting a housing model. Attention is now focused on developing a model which meets the off-balance sheet requirements, and one in which the EIB might participate.
174. Deputy Joan Burton asked the Minister for Finance the discussions has he had with his ECOFIN colleagues in view of the recent developments in respect of the common consolidated tax base; the steps he has taken in the interests of protecting Ireland's tax sovereignty; and if he will make a statement on the matter. [38050/17]
View answerThe European Commission's proposal for a Common Consolidated Corporate Tax Base (CCCTB) was published in October 2016 and discussed at the November 2016 ECOFIN meeting where initial impressions of the proposal were exchanged. At the December 2016 ECOFIN, Council Conclusions were approved in respect of the Commission's wider package which included the CCCTB proposal but there was no specific discussion of the proposal at that meeting.
Since my appointment as Minister for Finance, I attended the June and July ECOFIN meetings where CCCTB was not on the agenda and was not specifically discussed.
The CCCTB is a complex and detailed proposal and Member States need to analyse fully its potential impact on national tax systems. Member States have begun to discuss and debate the various aspects of the proposal in the relevant tax working parties. Ireland is engaging constructively in these discussions while continuing to assess whether it is in line with our long-term interests.
Member States maintain full sovereignty on tax matters and unanimity is required before any proposal can be agreed.
175. Deputy Joan Burton asked the Minister for Finance the steps his Department and the Revenue Commissioners have taken to address problems experienced by SMEs in applying for the research and development tax credit and the administrative burdens associated with it; and if he will make a statement on the matter. [38051/17]
View answerThere are a number of elements of R&D tax credit regime which are of particular assistance to SMEs. These include the refundable element of the credit which helps cash-flow; the key employee provision to help them to attract talent; the removal of the base year in 2015; and generous limits on outsourcing.
Revenue has taken a number of steps to assist companies in making claims for the R&D tax credit:
- In 2015 Revenue published revised guidance which addressed issues Revenue was encountering on audits of claims for the R&D credit. Following on from the publication of that guidance, Revenue has presented at conferences around the country (such as the Industry Research & Development Group conferences which are attended by companies, advisors and educators), building awareness of the R&D tax credit and the common issues that arise.
- In February 2017 Revenue issued guidance aimed specifically at micro and small companies. The aim of this new guidance was to give these smaller companies greater clarity on how they could show to Revenue that their R&D tax credit claim satisfied the “science test”.
- In February 2017 Revenue also issued guidance which aimed to provide greater transparency on the appointment and use of independent experts in Revenue reviews of R&D tax credit claims.
176. Deputy Joan Burton asked the Minister for Finance the position regarding his Department’s study to amalgamate PRSI and USC; and if he will make a statement on the matter. [38052/17]
View answerI have stated on a number of occasions that my long-term view of the USC is to see its amalgamation with the existing PRSI system. In this context, a guiding principle will be a focus on reducing the income tax burden in a way that is both affordable and sustainable.
I have asked my officials to examine policy options with regard to the amalgamation of USC and PRSI. This will take some time in conjunction with the Department of Employment Affairs and Social Protection. The process will require an examination of what is likely to be a considerable re-working of the underpinning systems. The Universal Social Charge is a tax on income, whereas PRSI is a social insurance which generally confers rights to certain social welfare benefits when the necessary number of contributions have been made. The Deputy may be aware that the Income Tax and Universal Social Charge paper prepared for the Tax Strategy Group this July contained information on the potential advantages of a simplification of the personal tax system via an amalgamation of USC and PRSI, along with details of some of the policy considerations that would need to be addressed. This paper has been published on my Department’s website and is available at:
http://www.finance.gov.ie/wp-content/uploads/2017/07/TSG-17-02-Income-Tax-and-USC-paper-FINAL-JC.pdf.
Changes to USC and/or PRSI will form part of the ongoing wider medium-term process of income tax reform which is likely to take a number of Budgets to deliver. High marginal tax rates discourage work and increase costs to employers and therefore have a negative impact on both productivity and international competitiveness. This is a time when we need to concentrate on improving our competitiveness, to continue the increases in employment and opportunities for our citizens. It should be possible, as part of the medium-term reform process, to preserve aspects of the USC which are most beneficial to the long-term sustainability of our tax revenues, such as the wider tax base, while still achieving a growth-friendly simplification of the overall personal tax system.
177. Deputy Joan Burton asked the Minister for Finance the progress his Department has made in the establishment of the Credit Union Advisory Committee; when the first meeting of the implementation group will take place; and if he will make a statement on the matter. [38053/17]
View answerThe Credit Union Advisory Committee (CUAC) in its Review of Implementation of the Recommendations in the Commission on Credit Unions Report (CUAC Report) recommended the establishment of an Implementation Group for a specified period of time. As previously referred to in Parliamentary Question No. 196 on 4 April 2017 and Parliamentary Question No. 74 on 18 May 2017, the Implementation Group has been established to oversee and monitor implementation of CUAC's recommendations in a methodical manner and to advise the Minister for Finance on progress. To date, the Implementation Group has met seven times.
Publication of CUAC's Report in July 2016 was just the beginning of the process. From September 2016 onwards, CUAC continued working on enabling a coherent implementation plan be devised with the Department working closely with CUAC on this.
In line with CUAC's recommendations, the Department invited one nominee from each of the stakeholder groups to sit on the Implementation Group. The Implementation Group consists of a representative from each of: Irish League of Credit Unions; Credit Union Development Association; Credit Union Managers' Association; National Supervisors Forum; and the Central Bank. The Implementation Group also has a CUAC representative and is chaired by the Department of Finance. This broad membership ensures participation and encourages contribution from all credit union perspectives.
The Implementation Group held seven meetings from February to September 2017. These meetings were also attended by CUAC members. It is intended that each CUAC recommendation will be addressed separately with a view to implementation at the appropriate time. Meetings will continue to take place on a monthly basis with the next meeting scheduled for early October 2017. A number of discussion papers have been developed by the Implementation Group with the focus very much on implementing the recommendations at the appropriate time and in the most effective manner. The term of the Implementation Group is for one year which may be extended at the discretion of the Minister.
I look forward to receiving regular progress reports on implementation of these very important recommendations.
178. Deputy Joan Burton asked the Minister for Finance the progress his Department has made with the Central Bank on the request by a number of credit unions to expand their debit card and mortgage services; and if he will make a statement on the matter. [38054/17]
View answerAs previously referred to in Parliamentary Question Nos. 197 on 4 April 2017 and 75 on 18 May 2017, the Credit Union Act, 1997 (1997 Act) sets out the services that a credit union may provide to its members. In addition, the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (2016 Regulations) provides for services exempt from additional services requirements. Where a credit union wishes to provide services to its members, other than those services that are provided for under the 1997 Act or the list of services exempt from the additional services requirements set out in the 2016 Regulations, an application may be made to the Central Bank for approval to provide such additional services, in accordance with the provisions in sections 48-52 of the 1997 Act.
Debit card provision (and the necessary underlying payment account service) is an additional service and as such requires Central Bank approval. The Member Personal Current Account Services (MPCAS) which provides for a current account and a range of services, including payment instruments such as debit cards, has been available to eligible credit unions since October 2016. Six credit unions have been approved for this service which is granted under additional services provisions (sections 48 to 52) within the Credit Union Act 1997 (as amended).
I am informed that there has been substantial interest in this service from eligible credit unions and the Central Bank is currently processing a significant number of applications. The service approval provides for a shared services support, to bridge necessary technical expertise and scale considerations. It is expected that once MPCAS is fully established and embedded, it is likely to be available to smaller credit unions with necessary risk understanding. Details of MPCAS and the approval process, along with the application requirements and related guidance are on the Central Bank's website. The Central Bank has also indicated it is open to applications for alternative debit card proposals and recommends the MPCAS framework as a template for such alternative proposals.
Currently credit unions can, and some do, provide mortgages to members. These type of loans are subject to certain maturity limits contained in the 2016 Regulations. Those Regulations set out the percentage of a credit union's loan book that can be outstanding for periods exceeding both five years and ten years, as well as limits on the maximum outstanding liability to an individual member. Under the 2016 Regulations credit unions continue to be allowed to lend up to 30% of their loan book over five years and up to 10% of their loan book over 10 years, subject to a maximum maturity of 25 years. In addition, credit unions can apply to the Central Bank for an extension to their longer term lending limits (up to 40% of their loan book over 5 years and up to 15% of their loan book over 10 years). Approval is subject to conditions set by the Central Bank. 14 credit unions are currently approved to avail of increased longer term lending limits.
The Central Bank has indicated that it can see longer term lending, including mortgages, as part of a balanced portfolio of total lending. However, in their analyses, credit unions need to consider the impact of longer term lending on interest margins, return on assets and on balance sheet structure – the issue of funding longer term lending with short term funding is a challenge for the credit union business model. The Central Bank further informs me that consumer mortgage lending is an activity that has its own unique risk profile, and proposals to become involved in mortgage lending in a significant way must be supported by an evidence based business case.
The Registry of Credit unions is currently developing a paper on key risk considerations for credit unions intending to engage in longer term lending/mortgages, to support their understanding of the nature of risks involved and provide a degree of clarity on minimum expectations.
The Credit Union Advisory Committee's (CUAC) recent report provides a number of recommendations, one of which is to conduct a full review of lending limits. An Implementation Group has been established in this Department, which has met on seven occasions and is currently assessing each of CUAC's recommendations with a view to implementing as appropriate. Central to its work is ensuring a full examination of lending limits and concentration limits is carried out as recommended. I look forward to regular progress reports from the Implementation Group as these recommendations are developed and implemented.
179. Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to the recent publicity regarding an organisation's (details supplied) work regarding the establishment of a public banking network here; if the organisation invited officials from his Department and the Department of Rural and Community Development to participate in a field trip to Germany to examine the public banking network there; the technical assistance the organisation offered the Government in respect of the establishment of a public banking network here; and if he will make a statement on the matter. [38055/17]
View answerAs the Deputy is aware, the Programme for Government commits the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs (DAHRRGA) and the Department of Finance to investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions. Responsibility for this commitment has now moved from the DAHRRGA to the Department of Rural and Community Development.
A project team with officials from both departments was assembled in early 2017 to investigate the Sparkassen model and other models of local public banking and bring forward a report to both the Minister for Rural and Community Development, Michael Ring T.D., and myself. I understand that this report is near completion and will be published in due course. It will set out the Irish banking context as well as analysing the responses to the consultation on public banking and its applicability in Ireland. It will then set out the findings and conclusions of the investigation of the Sparkassen model and other models of local public banking.
There has been a consultation process as part of this investigation of local public banking. This consultation involved engagement with stakeholders and interested parties, including the Savings Banks Foundation for International Cooperation (SBFIC), the international development wing of the Sparkassen movement. Officials from the Department of Rural and Community Development and the Department of Finance met with representatives from SBFIC, who gave a detailed presentation, including a written proposal, on the Sparkassen model.
The purpose of the consultation process and subsequent report that is being prepared is to assist in the analysis of the applicability and viability of the Sparkassen model of local public banking in an Irish context.
180. Deputy Róisín Shortall asked the Minister for Finance the specific information that is recorded by the Revenue Commissioners in respect of stamp duty returns that are filed with it in respect of the transfer of residential land and other land. [38106/17]
View answerI am advised by Revenue that the information listed in the below Tables is the information that persons filing Stamp Duty returns are asked to supply in respect of the transfer (including long term and short term leases) of residential and non-residential land. The actual information supplied depends on the content of the document of conveyance/transfer or lease. All information supplied is recorded by Revenue.
Table 1: Information which filers of Stamp Duty returns are asked to supply in the case of documents of conveyance/transfer and long term leases (a lease for a term greater than 100 years) of Residential Land
|
Documents of Conveyance/Transfer and Long Term Leases of Residential Land |
New Dwelling House/Apartment |
Second-hand Dwelling House/Apartment |
Curtilage of Residential Land/Ground Rent |
|
Tax Reference No. of Filer |
Mandatory |
Mandatory |
Mandatory |
|
Tax Reference No. of each party to the document |
Mandatory |
Mandatory |
Mandatory |
|
Where applicable, the name(s) of any person(s) acting in a fiduciary capacity (e.g. Trustee/Legal Personal Representative/Nominee) on behalf of any party to the document |
Mandatory |
Mandatory |
Mandatory |
|
Date of execution of document |
Mandatory |
Mandatory |
Mandatory |
|
Date of related contract |
Optional |
Optional |
Optional |
|
Date document released from escrow |
Optional |
Optional |
Optional |
|
Total number of Residential Properties/Units being transferred in the document |
Mandatory |
Mandatory |
Mandatory - but where 0 (zero) is input the Type of Property will default to Curtilage/Ground Rent at a later screen. |
|
LPT Property ID/Property Address |
LPT Property ID is optional - but where LPT Property ID is not provided the address details including County and relevant Local Authority must be provided |
LPT Property ID is Mandatory. Once input, the address of the property automatically populates on the e-Stamping return. |
Address details Mandatory |
|
Folio Number(s) |
Optional |
Optional |
Optional |
|
Type of contract |
Mandatory |
Mandatory |
Mandatory |
|
Floor area of property |
Mandatory |
Optional |
N/A |
|
Purchaser Information (i.e. owner/occupier, non- owner/occupier, first time buyer owner/occupier) |
Mandatory |
Mandatory |
Mandatory |
|
If purchaser of property is a Local Authority |
Optional |
N/A |
N/A |
|
The relationship, if any, between the parties to the document (e.g. spouses/ associated companies) |
Optional |
Optional |
Optional |
|
Interest being transferred less than the full interest in the property (e.g. transfer from parent to parent and child) |
Optional |
Optional |
Optional |
|
Term of lease in years (only applicable to Long Term Leases) |
Mandatory |
Mandatory |
Mandatory |
|
Average Annual Rent (only applicable to Long Term Leases) |
Mandatory |
Mandatory |
Mandatory |
|
If there is a Rent Review Clause included in lease (only applicable to Long Term Leases) |
Optional |
Optional |
Optional |
|
Consideration paid and/or open market value in case of gift or partial gift |
Mandatory |
Mandatory |
Mandatory |
|
Stamp Duty Relief/Exemption claimed |
Optional |
Optional |
Optional |
Table 2: Information which filers of Stamp Duty returns are asked to supply in the case of documents of conveyance/transfer and Long Term Leases (leases for a term greater than 100 years) of Non-Residential Land
|
Document of conveyance/transfer and Long Term Lease of Non-Residential land |
Site Only |
Agricultural land |
Non-Agricultural land |
New and Second-hand Commercial/Industrial Premises |
|
Tax Reference No. of Filer |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Tax Reference No. of each party to the document |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Where applicable, the name(s) of any person(s) acting in a fiduciary capacity (e.g. Trustee/Legal Personal Representative/Nominee) on behalf of any party to the document |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Date of execution of Document |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Date document released from escrow |
Optional |
Optional |
Optional |
Optional |
|
Date of related contract |
Optional |
Optional |
Optional |
Optional |
|
Property Address including County details |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Folio Number(s) |
Optional |
Optional |
Optional |
Optional |
|
Type of contract |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Land area (Hectares) |
Mandatory |
Mandatory |
Mandatory |
Optional |
|
The relationship If any between the parties to the document (e.g. spouses, associated companies) |
Optional |
Optional |
Optional |
Optional |
|
Interest being transferred less than the full interest in the property (e.g. transfer from parent to parent and child) |
Optional |
Optional |
Optional |
Optional |
|
Term of lease in years (only applicable to Long Term Leases) |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Average Annual Rent (only applicable to Long Term Leases) |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
If there is a Rent Review Clause included in lease (only applicable to Long Term Leases) |
Optional |
Optional |
Optional |
Optional |
|
Consideration paid and/or open market value in case of gift or partial gift |
Mandatory |
Mandatory |
Mandatory |
Mandatory |
|
Stamp Duty Relief/Exemption claimed |
Optional |
Optional |
Optional |
Optional |
Table 3: Information which filers of Stamp Duty returns are asked to supply in the case of Short Term Leases (leases for a period less than or equal to 100 years) of Residential and Non-Residential Land
|
Short Term Lease |
Residential Land |
Non-Residential Land |
|
Tax Reference No. of Filer |
Mandatory |
Mandatory |
|
Tax Reference No. of each party to the document |
Mandatory |
Mandatory |
|
Where applicable, the name(s) of any person(s) acting in a fiduciary capacity (e.g. Trustee/Legal Personal Representative/Nominee) on behalf of any party to the document |
Mandatory |
Mandatory |
|
Date of execution of document |
Mandatory |
Mandatory |
|
Date document released from escrow |
Optional |
Optional |
|
Date of related contract |
Optional |
Optional |
|
Property Address including County details |
Mandatory |
Mandatory |
|
The relationship If any between the parties to the document (e.g. spouses, associated companies) |
Optional |
Optional |
|
Term of Lease in years and months |
Mandatory |
Mandatory |
|
If there is a Rent Review Clause included in lease |
Optional |
Optional |
|
If lease includes the payment of a premium |
Optional |
Optional |
|
Average Annual Rent and/or open market rent in the case of a gift |
Mandatory |
Mandatory |
|
Stamp Duty Relief/Exemption claimed |
Optional |
Optional |
182. Deputy Barry Cowen asked the Minister for Finance the number of local property tax exemptions in each local authority; and the reason for each exemption for 2016, and to date in 2017, in tabular form. [38123/17]
View answerI am informed by Revenue that the number of Local Property Tax (LPT) exemptions in each Local Authority is as outlined in the table below for the 2016 liability year. Data for 2017 is at present highly provisional and stable figures will not be available until year end. The rational for each exemption and the eligibility criteria is documented at
http://www.revenue.ie/en/property/local-property-tax/index.aspx.
Number of LPT Exemptions for 2016 by Local Authority
|
Property purchased as a home in 2013 |
New and previously unused between 1/1/2013 - 31/10/2019 |
Long-term illness |
Charity/Public Body owned for special needs |
Unsold by builder/developer |
Residence of a severely incapacitated individual |
Fully subject to Commercial rates |
Charitable recreational activities |
|
|
Carlow |
109 |
79 |
70 |
95 |
174 |
21 |
23 |
<10 |
|
Cavan |
145 |
103 |
109 |
189 |
247 |
32 |
46 |
<10 |
|
Clare |
211 |
128 |
209 |
215 |
350 |
64 |
59 |
<10 |
|
Cork City |
274 |
99 |
286 |
422 |
257 |
40 |
59 |
<10 |
|
Cork County |
974 |
491 |
622 |
1,002 |
937 |
147 |
248 |
21 |
|
Donegal |
198 |
172 |
214 |
354 |
281 |
65 |
68 |
<10 |
|
Dublin City |
1,768 |
481 |
999 |
2,125 |
870 |
216 |
338 |
38 |
|
Dun Laoghaire Rathdown |
975 |
387 |
326 |
252 |
244 |
67 |
60 |
12 |
|
Fingal |
923 |
349 |
155 |
257 |
191 |
88 |
57 |
<10 |
|
Galway City |
170 |
47 |
74 |
113 |
29 |
23 |
32 |
<10 |
|
Galway County |
386 |
237 |
294 |
346 |
265 |
53 |
102 |
12 |
|
Kerry |
247 |
178 |
319 |
324 |
275 |
59 |
133 |
<10 |
|
Kildare |
553 |
243 |
161 |
255 |
166 |
78 |
54 |
20 |
|
Kilkenny |
167 |
75 |
133 |
335 |
85 |
39 |
60 |
<10 |
|
Laois |
143 |
76 |
105 |
157 |
140 |
31 |
20 |
<10 |
|
Leitrim |
106 |
49 |
92 |
70 |
202 |
12 |
12 |
<10 |
|
Limerick City and County |
316 |
153 |
339 |
705 |
179 |
95 |
89 |
10 |
|
Longford |
88 |
55 |
82 |
96 |
54 |
12 |
23 |
<10 |
|
Louth |
255 |
113 |
184 |
222 |
137 |
52 |
57 |
<10 |
|
Mayo |
236 |
163 |
281 |
408 |
208 |
43 |
80 |
18 |
|
Meath |
401 |
165 |
167 |
221 |
164 |
77 |
52 |
11 |
|
Monaghan |
73 |
58 |
111 |
142 |
118 |
22 |
27 |
<10 |
|
Offaly |
139 |
54 |
122 |
124 |
133 |
26 |
34 |
10 |
|
Roscommon |
188 |
93 |
168 |
86 |
110 |
27 |
31 |
<10 |
|
Sligo |
136 |
86 |
143 |
209 |
191 |
31 |
39 |
<10 |
|
South Dublin |
729 |
288 |
213 |
275 |
115 |
107 |
81 |
<10 |
|
Tipperary |
268 |
151 |
267 |
478 |
185 |
79 |
122 |
<10 |
|
Waterford City and County |
214 |
102 |
231 |
620 |
124 |
63 |
61 |
<10 |
|
Westmeath |
160 |
89 |
159 |
89 |
58 |
27 |
46 |
<10 |
|
Wexford |
327 |
262 |
228 |
231 |
254 |
60 |
72 |
<10 |
|
Wicklow |
451 |
160 |
201 |
194 |
66 |
66 |
66 |
<10 |
|
Total |
11,330 |
5,186 |
7,064 |
10,611 |
6,809 |
1,822 |
2,251 |
226 |
table cont.
|
Fully subject to Commercial rates |
Charitable recreational activities |
Nursing homes |
Mobile homes |
Pyrite damaged |
Diplomatic properties |
Unfinished Housing Estates |
Total |
|
|
Carlow |
23 |
<10 |
<10 |
<10 |
0 |
0 |
73 |
656 |
|
Cavan |
46 |
<10 |
<10 |
<10 |
0 |
0 |
71 |
960 |
|
Clare |
59 |
<10 |
<10 |
<10 |
0 |
0 |
54 |
1,310 |
|
Cork City |
59 |
<10 |
11 |
<10 |
0 |
0 |
<10 |
1,460 |
|
Cork County |
248 |
21 |
32 |
21 |
0 |
0 |
289 |
4,784 |
|
Donegal |
68 |
<10 |
<10 |
21 |
<10 |
0 |
300 |
1,681 |
|
Dublin City |
338 |
38 |
68 |
<10 |
102 |
<10 |
129 |
7,143 |
|
Dun Laoghaire Rathdown |
60 |
12 |
11 |
<10 |
<10 |
<10 |
<10 |
2,345 |
|
Fingal |
57 |
<10 |
<10 |
12 |
386 |
0 |
<10 |
2,430 |
|
Galway City |
32 |
<10 |
<10 |
<10 |
0 |
0 |
<10 |
497 |
|
Galway County |
102 |
12 |
13 |
<10 |
0 |
0 |
57 |
1,774 |
|
Kerry |
133 |
<10 |
<10 |
<10 |
0 |
0 |
240 |
1,795 |
|
Kildare |
54 |
20 |
<10 |
<10 |
46 |
0 |
178 |
1,765 |
|
Kilkenny |
60 |
<10 |
<10 |
<10 |
0 |
0 |
11 |
911 |
|
Laois |
20 |
<10 |
<10 |
<10 |
0 |
0 |
58 |
743 |
|
Leitrim |
12 |
<10 |
<10 |
<10 |
0 |
0 |
71 |
620 |
|
Limerick City and County |
89 |
10 |
<10 |
<10 |
0 |
0 |
34 |
1,943 |
|
Longford |
23 |
<10 |
<10 |
<10 |
<10 |
0 |
209 |
628 |
|
Louth |
57 |
<10 |
<10 |
<10 |
0 |
0 |
114 |
1,144 |
|
Mayo |
80 |
18 |
<10 |
<10 |
0 |
0 |
25 |
1,475 |
|
Meath |
52 |
11 |
<10 |
51 |
118 |
0 |
62 |
1,495 |
|
Monaghan |
27 |
<10 |
<10 |
<10 |
0 |
0 |
23 |
581 |
|
Offaly |
34 |
10 |
<10 |
12 |
<10 |
0 |
<10 |
670 |
|
Roscommon |
31 |
<10 |
10 |
<10 |
0 |
0 |
99 |
818 |
|
Sligo |
39 |
<10 |
<10 |
<10 |
0 |
0 |
149 |
993 |
|
South Dublin |
81 |
<10 |
<10 |
<10 |
<10 |
0 |
14 |
1,845 |
|
Tipperary |
122 |
<10 |
<10 |
<10 |
0 |
0 |
292 |
1,857 |
|
Waterford City and County |
61 |
<10 |
<10 |
<10 |
<10 |
0 |
151 |
1,579 |
|
Westmeath |
46 |
<10 |
<10 |
<10 |
0 |
0 |
112 |
760 |
|
Wexford |
72 |
<10 |
10 |
14 |
<10 |
0 |
208 |
1,671 |
|
Wicklow |
66 |
<10 |
<10 |
25 |
0 |
<10 |
50 |
1,290 |
|
Total |
2,251 |
226 |
267 |
287 |
670 |
<10 |
3,093 |
49,623 |
Note: Entries marked as “<10” feature small numbers of cases and are suppressed for confidentiality reasons. Local Authority owned properties are excluded.
183. Deputy John Curran asked the Minister for Finance if the bodies and agencies under the remit of his Department plan to make services or payments dependant on the mandatory use and production of the public services card; if so, the services and payments which will now be dependent on the mandatory use of the public services card; and if he will make a statement on the matter. [38148/17]
View answerI wish to advise the Deputy that my Department (Department of Finance) has no plans to make services or payments dependent on mandatory use and production of the public services card.
With respect to the eighteen bodies under the aegis of my Department, I have been advised that seventeen have no plans to make services or payments dependent on the mandatory use and production of the public services card.
In line with Government policy to develop a single authentication mechanism for customers to access public services and to get their due entitlements, the Office of the Revenue Commissioners is in discussion with the Department of Social Protection and the Office of the Government Chief Information Officer about how such a mechanism can be utilised by customers of its myAccount service. Revenue’s myAccount is a secure online service which can be accessed by customers using their PPS number and a Revenue issued password or, alternatively if they have a verified MyGovID account (which is administered by the Department of Social Protection and is linked to the Public Services Card), customers can use their MyGovID details. A transition to authentication via MyGovID will be introduced on a phased basis, starting with individuals taking up employment for the first time.
184. Deputy Kevin O'Keeffe asked the Minister for Finance if he will review a specific scheme whereby persons that have retired and are not paying income tax are not eligible to avail of the scheme (details supplied). [38160/17]
View answerThe Home Renovation Incentive (HRI) provides a tax relief by way of an income tax credit on repair, renovation or improvements works on principal private residences or rental properties carried out by tax compliant contractors. HRI came into operation on 25 October 2013, with rental properties being brought within its scope from 15 October 2014. The scheme is scheduled to run until 31 December 2018.
The incentive is already available to all taxpayers, including pensioners, but as is the nature of tax-based incentive schemes, the taxpayer in question needs to have a sufficient tax liability to obtain the benefit of the additional tax credit. As the Deputy will be aware, those aged 65 and over are treated more favourably by the tax system with the availability of additional tax credits and increased exemption limits, which can act to reduce or nullify any tax liability.
The development of a similar measure that would benefit old-age pensioners who are outside the income tax net would involve direct expenditure; this would likely be outside the ambit of my Department's vote.
