Jim O'Callaghan
Question:172. Deputy Jim O'Callaghan asked the Minister for Finance the length of time that persons have been waiting for a hearing since they lodged their appeal, by year, in tabular form. [39469/17]
View answerTax Data
Questions (172, 173)
Jim O'Callaghan
Question:173. Deputy Jim O'Callaghan asked the Minister for Finance the number of months that persons have been waiting to receive a determination after their appeal has been heard, in tabular form. [39470/17]
View answerWritten answers
I propose to take Questions Nos. 172 and 173 together.
I am advised by the Tax Appeals Commission (TAC) that it is not currently in a position to provide all the information requested by the Deputy as certain appeals related data is either not routinely collated by the TAC or is not collated in a form that is readily accessible. The TAC is currently taking steps to address these issues through the introduction of its case management system. When completed it will be possible to extract more flexible and relevant appeals related data from the TAC's case management system.
In relation to the length of time that persons have been waiting for a hearing since they lodged their appeal, the Deputy may be interested to know that not all appeals submitted will proceed to a hearing. I am advised that some appellants may choose to have their case dealt with by, inter alia, correspondence and thus not require a hearing. Notwithstanding, whether a case requires a hearing or is dealt with by correspondence, all cases must progress through the appeals system in order to ascertain the appropriate action required. In this regard, I am advised that only once a case has been fully processed, all directions complied with and all supporting documentation received from both parties, is a case ready to be listed for hearing.
I am also informed that cases can fail to progress to the hearing stage for a number of factors including that the appeal is withdrawn or that the appellant and Revenue reach a settlement thus negating the need for further TAC involvement. The Deputy may be interested to know that, based upon the latest available figures, 89 cases received by the TAC in 2016 were settled by agreement between the appellant and Revenue, 64 of which had settled within 3 months of the submission of the appeal. These figures along with further analysis of the work of the TAC is available in the TAC’s 2016 Annual Report, which can be accessed on their website, www.taxappeals.ie.
In relation to the length of time persons have been waiting for a determination after their appeal has been heard, I am advised by the TAC that it is not possible for it to compile all the necessary information requested by the Deputy in the time available. The TAC have further advised me that a response is being prepared which will be provided to the Deputy as soon as possible.
As the Deputy may be aware, the TAC currently has a public consultation on its rules and procedures open to submissions from members of the public and all other interested parties who may wish to make submissions.
Question No. 174 answered with Question No. 156.
IBRC Liquidation
Questions (175, 176, 179)
Marc MacSharry
Question:175. Deputy Marc MacSharry asked the Minister for Finance further to Parliamentary Question No. 133 of 11 September 2017, if he will provide copies of all minutes of meetings between his Department and the special liquidators in relation to the costs of the liquidation of IBRC since 7 February 2013; and if he will make a statement on the matter. [39534/17]
View answerMarc MacSharry
Question:176. Deputy Marc MacSharry asked the Minister for Finance further to Parliamentary Question No. 133 of 11 September 2017, the queries in relation to costs that were raised by him with the special liquidators; the way in which these were addressed; and if he will make a statement on the matter. [39535/17]
View answerMarc MacSharry
Question:179. Deputy Marc MacSharry asked the Minister for Finance the policies, reporting requirements and specific oversight procedures he has put in place since 7 February 2013 for the costs of the liquidation and the special liquidators of IBRC; if he has engaged an external party or other State entity to examine and challenge the invoices produced; the work upon which the costs are based; the method of charging and calculation of such costs; and if he will make a statement on the matter. [39538/17]
View answerWritten answers
I propose to take Questions Nos. 175, 176 and 179 together.
As previously advised, the Special Liquidators publish an annual progress update report on the liquidation of IBRC which is publicly available and this report also has a section on fees and costs of the liquidation and also outlines the various cost management activities undertaken by the Special Liquidators and the nature of the on-going interaction with the Department in this regard.
Since the liquidation of IBRC in February 2013, the Special Liquidators have published 4 such progress update reports, all of which are available on the Department of Finance website.
On 6 June 2014 the Special Liquidators published the first progress update report which covers he period from 7 February 2013 to 31 March 2014 and is available through the following link
www.finance.gov.ie/wp-content/uploads/2017/07/IBRC-Progress-Update-Report-6th-June-2014.pdf.
On 12 March 2015 the second progress update report was published which covers the 9 month period to 31 December 2014 and also the 23 month period from the beginning of the liquidation in February 2013 to 31 December 2014, this report is available through the following link
www.finance.gov.ie/wp-content/uploads/2017/07/IBRC-Progress-Update-Report-12th-March-2015.pdf.
On 27 May 2016 the third progress update report was published which covers the 12 month period to 31 December 2015 and also the 35 month period from the beginning of the liquidation to in February 2013 to 31 December 2015, this report is available through the following link www.finance.gov.ie/wp-content/uploads/2017/07/IBRC-Progress-Update-Report-27th-May-2016.pdf.
On 5 May 2017, the fourth (and most recent) progress update report was published by the Special Liquidators covering the 12 month period to 31 December 2016 and also the 47 month period from the beginning of the liquidation in February 2013 to 31 December 2016, this report is available through the following link
www.finance.gov.ie/wpcontent/uploads/2017/07/IBRC-Progress-Update-Report-5th-May-2017.pdf.
I am advised by my officials that they receive a quarterly report from the Special Liquidators which gives an update on the liquidation of IBRC. This report outlines the progress being made by the Special Liquidators on the various work streams which are on-going. The report also provides a fee update for the period for which the report relates to. Department of Finance officials review these reports once received and revert to the Special Liquidators should they have any queries on any aspect of the report. Minutes of meetings with the Special Liquidators are commercially sensitive due to the ongoing nature of the liquidation.
The most recent queries in relation to costs raised by my officials have been in relation to costs associated with the on-going Commission of Investigation and also the mortgage redress project and interest overcharging project; all of which have been intensive work streams for the Special Liquidators and their team.
As previously advised, neither 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 and 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.
IBRC Liquidation
Questions (177)
Marc MacSharry
Question:177. Deputy Marc MacSharry asked the Minister for Finance further to Parliamentary Question No. 134 of 11 September 2017, the basis on which the rebate of €5 million was provided by the special liquidators in respect of their costs; if this or other rebates were requested by him; the way in which the sum of €5 million was calculated; if it related to overcharging or failure to deliver the services that were the subject of the original charge; and if he will make a statement on the matter. [39536/17]
View answerWritten answers
I am advised that Department of Finance officials met with the Special Liquidators of IBRC in November 2013 in order to discuss the level of costs being incurred as a result of the liquidation. This meeting was requested given the significant increase of workload being incurred over and above what was expected by the Department of Finance when the original special liquidation rates (based on discounted NAMA rates) were agreed. All aspects of the liquidation were reviewed including the on-going IBRC overheads, the Special Liquidator fees and professional advisor fees. At that meeting it was agreed that the Special Liquidators would perform a comprehensive review of their own costs and revert with a view to imposing a significant reduction. I am advised that this request for a reduction in costs from KPMG was not requested as a result of previous overcharging or failure to deliver services. Agreement was reached with KPMG in December 2013 to provide an overall reduction of €5m. All other negotiation of rebates on professional and legal fees as part of the special liquidation were a matter for the Special Liquidators who were asked by Department of Finance officials to negotiate these and this resulted in the agreement of rebates on already reduced rates with A&L Goodbody Solicitors and Linklaters Solicitors. Total rebates from these two firms amounted to €3m (to 31 December 2016) which meant that the total rebates received since the start of the liquidation are €8m. After KPMG, A&L Goodbody Solicitors and Linklaters solicitors have been the two largest recipients of fees arising from the special liquidation of IBRC.
Page 39 of the most recent progress update report from the Special Liquidators outlines the rebates agreed:
www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf.
IBRC Liquidation
Questions (178)
Marc MacSharry
Question:178. Deputy Marc MacSharry asked the Minister for Finance further to Parliamentary Question No. 134 of 11 September 2017, the way in which a statement (details supplied) is correct; if he will request the special liquidators to provide the information requested in view of the fact that further to Parliamentary Question No. 286 of 9 June 2015 he provided same; and if he will make a statement on the matter. [39537/17]
View answerWritten answers
Question 134 of 11 September 2017, which you posed, asked for a breakdown in relation to the number of persons, by grade, performing the work of the Special Liquidators. Question 286 of 9 June 2015 asked for a breakdown of the hourly rates of each grade.
I am advised by the Special Liquidators that the commercial sensitivities are around disclosing the details in relation to the number of persons, by grade, performing the work on the special liquidation and not the hourly rates per grade. The hourly rates per grade remain as per what was agreed at the start of the liquidation and, as per the response to parliamentary question 286 of 9 June 2015, are set out in the table below. These rates are based on NAMA negotiated rates for the relevant services. These rates were put in place following a competitive tender conducted by NAMA.
|
Grade |
Rate Per Hour (excluding VAT) |
|
Partner |
€295 |
|
Director |
€260 |
|
Associate Director |
€220 |
|
Manager |
€190 |
|
Supervisor |
€165 |
|
Senior Accountant |
€165 |
|
Semi-senior accountant |
€165 |
|
Junior accountant |
€95 |
Question No. 179 answered with Question No. 175.
Employment Investment Incentive Scheme
Questions (180)
Michael McGrath
Question:180. Deputy Michael McGrath asked the Minister for Finance the number of applications received under the employment and investment incentive scheme in each year of its existence; the number of applications approved and refused respectively; the number in which decisions are still awaited; the amount invested each year; the average turnaround time for a decision from the Revenue Commissioners; and if he will make a statement on the matter. [39549/17]
View answerWritten answers
1. Revenue advises me that the numbers of applications received and the numbers of companies approved or refused for the Employment and Investment Incentive (EII) for each year since its introduction were as follows:
|
Year |
Total Received |
Approved |
Refused |
|
2012 |
83 |
78 |
5 |
|
2013 |
211 |
190 |
21 |
|
2014 |
256 |
239 |
17 |
|
2015 |
310 |
279 |
31 |
|
2016 |
322 |
261 |
61 |
|
2017 (year to date) |
312 |
262 |
50 |
|
Total |
1,494 |
1,309 |
185 |
2. The number of new cases currently awaiting processing is 215. This does not include cases where taxpayers have been asked to provide additional information but have not yet done so as many of those cases relate to incomplete applications.
3. The amounts invested each year since the introduction of the EII were as follows:
|
Year |
Total Amount Invested €M |
|
2012 |
13.4 |
|
2013 |
42.4 |
|
2014 |
62.7 |
|
2015 |
74.1 |
|
2016 |
108.5 |
As a number of the approvals for 2017 are outline approvals, rather than approvals in respect of shares issued, it is not possible to quantify the amount to be invested.
4. It is not possible to give an average time taken to issue a decision. Where a full application, with all supporting documentation, is received, a decision will issue more quickly than a case where additional information and clarifications must be sought. Equally, it takes less time to carry out the level of examination required in respect of a claim by a company with a simple corporate structure than a claim in respect of a complex corporate grouping. At present, in respect of the more complex cases, it can take up to three months for a reply to issue.
5. Finally, Revenue also advises me that a number of statistical reports on EII are available on
www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/eii.aspx.
Flood Risk Assessments
Questions (181)
Richard Boyd Barrett
Question:181. Deputy Richard Boyd Barrett asked the Minister for Finance if he will instruct insurance companies to reassess the risk of flooding based on the Office of Public Works flood risk maps for the area of Abberley, Killiney, County Dublin and not on outdated flood risk information; and if he will make a statement on the matter. [39558/17]
View answerWritten answers
I am aware of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years.
However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are accepting. This assessment will in many cases include insurers own presumptions based on their private modelling and research. Consequently, neither the Government nor the Central Bank can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from doing so.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
development and implementation of plans by the OPW to implement flood relief schemes, and
improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in marginal areas.
The core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of Flood Risk Management Plans.
I am advised by the OPW that the current position regarding the CFRAM Programme is that the review by the OPW of the final versions of the Flood Risk Management Plans, having taken account of the submissions received during public and statutory consultation is almost completed. The majority of the Plans are now with the Department of Public Expenditure and Reform for their independent review of the environmental assessments. Once this independent review is completed and observations addressed, the final Plans will be formally submitted for approval.
While it is not possible for me to comment on individual cases in great detail, I understand that the specific maps relating to Abberley, Killiney, Co. Dublin have been finalised and will be published on the dedicated website on the day of the launch of the CFRAM Programme.
It is important to note that the flood maps are community based maps and provide a useful resource for planning and emergency response and cannot be used for commercial purposes. The insurance industry uses its own flood modelling tools for assessing the level of risk to individual properties.
Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.
Insurance Fraud
Questions (182)
Fergus O'Dowd
Question:182. Deputy Fergus O'Dowd asked the Minister for Finance if he will consider recommending that insurance companies show the actual cost of insurance fraud on each individual insurance premium, in view of the fact that highlighting the actual cost to a person's insurance may increase the number of persons that report insurance fraud and may help reduce the overall cost per year to insurers and customers; and if he will make a statement on the matter. [39610/17]
View answerWritten answers
At the outset, the Deputy should note that tackling fraud is one of the six key objectives within the Action Plan of the Report on the Cost of Motor Insurance. This Report recommended the setting up of a fully functioning insurance fraud database for industry to detect patterns of fraud. A dedicated Working Group has been set up in the Department of Justice and Equality to implement this recommendation. A further recommendation which is being actively examined is aimed at exploring the potential for further co-operation between the insurance sector and An Garda Síochána in relation to insurance fraud investigation.
The Report on the Cost of Motor Insurance also recommended the provision of additional information to consumers by insurers on their premium breakdown. This recommendation is being implemented by the Central Bank of Ireland who are undertaking a consultation process to determine what information should be included. Due to their role in implementing this recommendation, my officials contacted the Central Bank on the idea of including the estimated cost of insurance fraud on each individual insurance premium and they indicated that this “would appear to be a complex process. Due to the nature of insurance fraud it would not be feasible to accurately estimate the exact cost of fraud and attribute it to an individual policy. Therefore any attribution of ‘fraud cost’ to an individual policy would be artificial and ultimately not of benefit to the policyholder.”
My officials also contacted Insurance Ireland in relation to your question and were informed that it has been running advertising campaigns for many years highlighting the cost of fraudulent activity and encouraging the public to reported suspected fraudulent activity through its “Insurance Confidential” service. As part of an ongoing campaign which was launched last year, advertisements have highlighted the view that insurance fraud adds €50 to the average motor insurance premium, with insurance fraud estimated to cost the whole industry €200 million a year.
Insurance Ireland has indicated that 9,000 cases of suspected fraud have been received and investigated through its “Insurance Confidential” website and related lo-call phone number. It also claims that the current high-profile campaign – run across broadcast and online outlets, including social media – has led to increases in the number of cases of fraud reported to “Insurance Confidential”, as well in the number of visitors to the website and an overall increased awareness of the service.
Finally, fraud continues to be examined during the second phase of the Cost of Insurance Working Group, which is focused on employer and public liability. While the issues under consideration in respect of employer liability insurance and public liability insurance are particularly complex and raise a number of constitutional questions, it is hoped that a final report will be published during the autumn/winter term. As with the first phase, the aim is for all relevant bodies and stakeholders to work together in order to deliver the objectives of fairer premiums and a more stable and competitive market without unnecessary delay.
Interest Rates
Questions (183)
Fergus O'Dowd
Question:183. Deputy Fergus O'Dowd asked the Minister for Finance the action being taken to reduce variable interest rates in the banking sector; and if he will make a statement on the matter. [39652/17]
View answerWritten answers
The issue of standard variable mortgage rates is a significant one for this Government and the Programme for a Partnership Government has set out a number of important and practical measures which seek to improve the position of variable rate mortgage holders.
A key item was the request to the Competition and Consumer Protection Commission (CCPC) to conduct a review of the Irish mortgage market. The CCPC has recently produced its report and it outlines a range of short, medium and long term options to improve the operation of the market. The Government will now evaluate and consider these options in detail. A web link to the report is attached for information:
www.ccpc.ie/business/wp-content/uploads/sites/3/2017/06/CCPC-Mortgages-Options-Paper.pdf.
The Government also believes that measures to encourage and promote a greater level of switching in the mortgage market will help boost the level of competition in the market for existing mortgages. In particular, the Programme for a Partnership Government considers that the development of a code of conduct for switching mortgage provider would be a useful and practical initiative which would have the potential to deliver savings to many existing mortgage holders. In line with this commitment, in 2016 the Central Bank commenced research in the area of mortgage switching which was completed earlier this year. Based on this research, the Central Bank has now commenced a consultation process on proposed measures to help consumers to compare their existing mortgage to other mortgage options and to provide consumers with standardised switching information:
www.centralbank.ie/docs/default-source/publications/Consultation-Papers/cp112/cp112-enhanced-mortgage-measures---transparency-and-switching.pdf?sfvrsn=2.
The Central Bank has already made some changes to require lenders to better inform and protect variable rate mortgage holders in relation to changes in mortgage rates. These were set out in an Addendum to the Consumer Protection Code 2012 and require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an interest rate increase. The measures will also improve the level of information to be provided to borrowers about other mortgage products their lender provides that could provide savings for the borrower and signpost borrowers to the CCPC's mortgage switching tool.
In overall terms, the Government is of the opinion that increased competition rather than administrative controls is the best way to ensure that retail lending rates are driven down in a sustainable way for the market as a whole but without giving rise to potentially undesirable consequences for the provision of new mortgage lending. There has been some progress in this area. Recently published Central Bank data showed that standard variable mortgage rates for new PDH mortgages fell by 23 basis points to 3.34 per cent in quarter 2 2017 since the same period in 2016, and the further variable rate mortgage reduction announced last week by a main mortgage lender will have a further welcome impact on overall mortgage rates. However, this is a policy area that the Government will continue to keep under active review in its ongoing engagement with mortgage lenders and in implementing the Programme for Government commitments to help deliver on a long term basis better outcomes for all mortgage borrowers.
Credit Union Regulation
Questions (184)
Richard Boyd Barrett
Question:184. Deputy Richard Boyd Barrett asked the Minister for Finance if his attention has been drawn to the fact that core credit unions have taken a vote to expel members who have less than €10 in their account; and if he will make a statement on the matter. [39719/17]
View answerWritten answers
The Credit Union Act 1997 (1997 Act) contains provisions in relation to membership, membership approval and expulsion.
In particular Section 17(3) of the 1997 Act states that a person shall not be a member unless he has at least one fully paid-up share in the credit union, but the rules of the credit union shall not require a person to have more than €10, or such larger sum as may be prescribed, in fully paid-up shares as a condition of membership. In addition Section 17(8) of the 1997 Act states that a member of a credit union shall not be excluded from membership by any amendment of the credit union's rules registered after he became a member.
Individual credit unions may prescribe rules on membership. These rules must be in accordance with sections 13 to 15 of the 1997 Act, and must not conflict with the legislative requirements of the Act.
Where a member is seeking information or has concerns regarding the operation of their credit union, they should request this information from their credit union in the first instance, including clarification on what rules applied to that particular member at the time they became a member.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her 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.
Question No. 185 answered with Question No. 147.
Economic Competitiveness
Questions (186)
Micheál Martin
Question:186. Deputy Micheál Martin asked the Minister for Finance the policies he is implementing to ensure that the State remains competitive; the number of recommendations that are being implemented from the most recent National Competitiveness Council report; and if he will make a statement on the matter. [39746/17]
View answerWritten answers
Addressing Ireland’s economic competitiveness is a key economic policy priority for Government, as outlined in the Summer Economic Statement published in July. The Action Plan for Jobs 2017 sets out a range of initiatives across Government Departments to support competitiveness. The National Competitiveness Council has reported regularly to the relevant Cabinet Committee where its recommendations are considered by the appropriate line Departments. This facilitates timely attention to areas of opportunity for improvement.
In its 2016 Competitiveness Challenge the Council acknowledged the improvement in Ireland’s public finances in recent years and recommended that Ireland continue to maintain a sound budgetary position. Pointing out that the Exchequer is still running a deficit, the Council highlighted the necessity of broadening the tax base in a manner that supports employment and enterprise. It also emphasised the need to ensure continued transparency and simplicity in relation to our tax structure. The Council also outlined recommendations that Ireland continue to develop a suite of tax offerings to ensure it is internationally competitive for enterprise and attuned to evolving sectors and activities particularly in the context of continued engagement with the OECD’s Base Erosion and Profit Shifting project. The Council recommended an appropriate balancing of the need to meet our obligations under the Stability and Growth Pact and the need to put in place a sustainable, counter-cyclical, medium-term fiscal planning process with the need to increase capital investment to enhance competitiveness and support enterprise.
The Council’s recommendations in relation to the importance of maintaining fiscal sustainability and ensuring that the tax system is internationally competitive and rewards work, investment and entrepreneurship are in accordance with Government fiscal policy as reflected in the fiscal stance in successive budgets and in this year's Summer Economic Statement. They inform my Department’s ongoing consideration of further measures to maintain economic competitiveness which will be set out in Budget 2018.
Irish Fiscal Advisory Council
Questions (187)
Micheál Martin
Question:187. Deputy Micheál Martin asked the Minister for Finance if he has met the Irish Fiscal Advisory Council recently; and if he will make a statement on the matter. [39747/17]
View answerWritten answers
I can confirm to the Deputy that I have not met with the Irish Fiscal Advisory Council (IFAC) since assuming my role as Minister for Finance. In July of this year I met with the Chairman of the IFAC, Mr Seamus Coffey, in relation to the Review of Ireland’s Corporation Tax Code. This meeting did not relate to Mr Coffey’s work as Chair of the Fiscal Council.
Budget Statement
Questions (188)
John Curran
Question:188. Deputy John Curran asked the Minister for Finance if he will consider introducing a VAT compensation scheme to provide relief from VAT if only on a partial basis initially on activities undertaken by charities here in the context of budget 2018; and if he will make a statement on the matter. [39758/17]
View answerWritten answers
As 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.
Data Protection
Questions (189)
Michael McGrath
Question:189. Deputy Michael McGrath asked the Minister for Finance the instances in which customer data was lost or misplaced by banks (details supplied); if such instances were referred to the Data Protection Commissioner; the policy of each bank on employees travelling with printed documents containing personal and confidential information relating to customers; and if he will make a statement on the matter. [39759/17]
View answerWritten answers
I, as Minister for Finance, have no statutory role in relation to the matters referred to in the question. As the Deputy will be aware the Office of the Data Protection Commissioner comes under the aegis of my colleague the Minister for Justice and Equality.
I am aware of recent media reports on the loss of certain customer data. I have been informed by the AIB Group that it adheres to the Office of the Data Protection Commissioner’s Personal Data Security Breach Code of Practice in respect of the bank's reporting obligations. In addition, all AIB staff are subject to a number of Bank Policies, Standards and Guidance documents in relation to safety and security of AIB customer and business information. The Bank’s Information Security Policy and Standards prescribe the Bank’s standards and controls in respect of the handling and transfer of confidential and sensitive information and provides that the confidentiality of customer, staff and business information must be maintained at all times.
AIB has informed me that all staff are required to keep documents, files and folders in a secure environment and ensure that confidential documents are not read in public view and to use electronic means of securing the data where possible. When a staff member becomes aware of any incident where customer or employee information has potentially been compromised they must immediately report the incident to the Data Protection Team. A Data Protection error is also logged on the Bank’s internal Complaints & Error Management systems. The Data Protection Team record all confirmed Data Protection breaches, manage all interactions with the Office of the Data Protection Commissioner and advise business areas on the resolution of incidents. AIB’s Information Security Standards For All booklet also provides guidance to staff on the handling of information in their care and provides that confidential paper must not be left unattended and or taken out of the office unless required. AIB staff are also reminded through on-going training and awareness sessions that protecting customer information is a key part of the Information Security and Risk Awareness procedures and is fundamental to their Data Protection obligations to keep personal data safe and secure.
I have been informed by the Bank of Ireland Group that it is committed to ensuring the privacy rights of individuals are upheld at all times and that it has policies in place to preserve the confidentiality of personal data it holds, in line with the Data Protection Commissioner's approved Personal Data Security Breach Code of Practice. The risks of accidental disclosure or loss of personal information are addressed through business controls and standards to protect such data during collection, processing, storage and transmission (transportation).
Permanent TSB have informed me that the bank fully complies with the Personal Data Security Breach Code of Practice, including reporting breaches to the Commissioner. PTSB takes its data protection and information security responsibilities seriously and has appropriate policies and procedures in this regard. For example their Code of Ethics, which is applicable to all staff, specifically refers to a duty of care to safeguard the confidentiality of their customers' data.
I understand from KBC that the bank manages instances in which customer data is lost or misplaced in line with the requirements of the Data Protection Acts 1988 and 2003 and the Data Protection Commissioner's Personal Data Security Breach Code of Practice. KBC Bank takes appropriate security measures to help prevent against unauthorised access to, or alteration, disclosure or destruction of personal data and to help prevent against its accidental loss or destruction. This includes adopting enhanced security measures where personal data is being stored or processed outside of a KBC Bank office location.
Ulster Bank Ireland DAC has informed me that it takes its Data Protection responsibilities very seriously. They are registered with the Data Protection Commissioner (DPC) and actively follow the Personal Data Security Privacy Breach Code of Practice so that all known instances of customer data loss and/or misplacement are reported to the DPC. Their internal security policies set out how customer data should be managed, handled and stored.
On the issue more generally, the Central Bank has informed me that Irish Credit Institutions are required to notify regulators of operational risk and loss events. This condition is imposed on the banks’ licenses under Section 10 of the Central Bank Act, 1971. However, the Bank cannot disclose any specific information to third parties relating to its interactions with individual credit institutions per the Central Bank Act, 1942.
Disabled Drivers and Passengers Scheme
Questions (190)
Eamon Scanlon
Question:190. Deputy Eamon Scanlon asked the Minister for Finance the reason an organisation (details supplied) is deemed ineligible for the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [39782/17]
View answerWritten answers
The Disabled Drivers and Disabled Passengers Scheme provides relief from VAT and Vehicle Registration Tax, an exemption from motor tax and a grant in respect of fuel expenditure, on the purchase of an adapted car for transport of a permanently and severely disabled person within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
To qualify for the scheme an applicant must be in possession of a primary medical certificate, which can be obtained if an applicant meets one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
After six months an unsuccessful applicant can reapply if there is a deterioration in their condition.
The scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise.
From time to time representations are received on behalf of individuals who feel they would benefit from the scheme but do not qualify under the criteria. While I have sympathy for these cases, given the scale and scope of the scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
Flood Relief Schemes
Questions (191)
John Lahart
Question:191. Deputy John Lahart asked the Minister for Finance if his attention has been drawn to the difficulty faced by some home owners along river banks and flood prone areas in obtaining home insurance; his plans to introduce a scheme, similar to the Flood Re scheme in the UK, whereby the Government assists flood prone home owners obtain affordable cover for their homes; and if he will make a statement on the matter. [39836/17]
View answerWritten answers
I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years. However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.
In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation, and neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.
The Department of Finance carried out a review of policy in relation to flood insurance in 2016, which formed part of the Interdepartmental Flood Policy Coordination Group Interim Report, as approved by Government in November 2016. As part of the review, the Department examined a number of possible approaches including approaches in other jurisdictions. It was considered that the approach of an Insurance Pool with State Indemnification similar to Flood Re would lead to additional levies being imposed on all household insurance policies at a time of increasing insurance costs, and could potentially lead to a considerable financial exposure to the State in the form of a State backstop.
The review recommended the continuation of the existing policy approach which has been in place since 2010, and confirmed by Government again in November 2016. This policy is focused on the development of a sustainable, planned and risk based approach to dealing with flooding problems, which should in turn lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- development and implementation of plans by the OPW to implement flood relief schemes, and
- improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in marginal areas.
This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland, the representative body for insurance companies in Ireland, which provides for the exchange of data in relation to completed flood defence schemes which should provide a basis for the increased provision of flood insurance in areas where works have been completed. In this regard, the Insurance Ireland/OPW working group, which the Department of Finance attends, now meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.
The most recent Insurance Ireland survey of approximately 85% of the property insurance market in Ireland indicates that of 16 completed defence schemes, 90% of policies in areas benefitting from permanent flood defences include flood cover, with 77% of policies in areas benefitting from demountable defences including flood cover.
Question No. 192 answered with Question No. 147.
Brexit Issues
Questions (193, 194)
Stephen Donnelly
Question:193. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 214 of 11 September 2017, if the Revenue Commissioners have assessed the additional resources which would be required if the UK left the customs union; the reason this is not possible; and if he will make a statement on the matter. [39867/17]
View answerStephen Donnelly
Question:194. Deputy Stephen S. Donnelly asked the Minister for Finance if customs officials are targeting an increase in the percentage of physical examinations of consignments in the context of Brexit; and if he will make a statement on the matter. [39868/17]
View answerWritten answers
I propose to take Questions Nos. 193 and 194 together.
I am informed by the Revenue Commissioners that they are actively engaged in examining a range of scenarios in order to support Ireland's Brexit objectives. As previously indicated, until the shape of post-Brexit arrangements becomes clear, it will not be possible to formulate specific plans. I am therefore informed by Revenue that at this juncture it is not possible to assess what additional resources would be required if the UK left the customs union. The future trading relationship between the UK and EU will only be discussed during Phase 2 of the Article 50 negotiations, therefore it is premature to speculate on the customs arrangements that will apply.
European Banking Authority
Questions (195)
Stephen Donnelly
Question:195. Deputy Stephen S. Donnelly asked the Minister for Finance the proposals put forward as part of the State's bid to host the European Banking Authority to ensure the retention of specialised staff; and if he will make a statement on the matter. [39869/17]
View answerWritten answers
The procedure agreed by the European Council for the relocation of the European Agencies currently located in London, the European Banking Authority (EBA) and the European Medicines Authority (EMA), stresses that the business continuity of the two Agencies is vital and must be ensured.
Business continuity is one of the six essential criteria in the relocation selection process and concerns among other things the ability to allow the EBA to maintain their expert staff and to attract highly qualified staff from the relevant sectors, in case not all current staff should choose to relocate. It also concerns the capacity to ensure a smooth transition to the new location and to guarantee continued operation of the Authority which should remain operational during the transition.
Ireland’s bid to host the EBA sets out how a relocation to Dublin offers the least disruptive move for the Authority, its staff and their families, and outlines the factors which make Dublin the best location to ensure the greatest retention of EBA staff.
The proximity of Dublin to London, geographically, culturally, and linguistically, would make the relocation to Dublin less demanding for the specialised staff of the Authority than a move to other potential locations, thus encouraging retention of staff.
Ireland is also well placed to provide employment opportunities for spouses and partners of EBA staff, with a well-established financial services centre, and diverse economy which is home to a large number of well-known foreign and domestic multinationals. In addition, Ireland's diversified financial services centre provides a large pool of highly qualified staff that can be used to replace those EBA staff that choose not to move from London.
As a sign of Ireland’s commitment to the EBA staff, who are facing significant disruptions and uncertainty due to the move from London in a relatively short timeframe, the offer proposes financial and organisational commitments to assist in relocation.
This includes support from Government Departments and their agencies, along with financial contributions for the Authority and its staff, which seek to make the move from the United Kingdom as smooth as possible.
In the event of Dublin being chosen as the location for the EBA, a Relocation Group will be formed, to support the smooth transition to Dublin. The Group will involve officials from the Department of Finance, other relevant Government Departments and State agencies. The remit of this group will include ensuring the Headquarters Agreement between Ireland and the EBA is in place prior to its move to Dublin. The Agreement will include all the conditions offered by Ireland to the EBA and its staff.
In terms of education facilities for the children of EBA staff, the Department of Education and Skills will provide services of an appropriate nature which may include mother-tongue tuition and/or European Baccalaureate provision.
The Department of Social Protection will also provide support to EBA staff with social welfare matters and EURES Ireland (the Irish branch of the European Employment Services Network, managed by the Department of Social Protection) will offer a dedicated point of contact to provide information and support on working and living conditions in Ireland to the Authority staff, spouses and their dependants.
In addition to these supports, Ireland proposes an offer of up to €1m towards the provision of professional relocation services for the EBA staff and their families. It is intended that a private company would be sourced, following a tender process, to provide such a service.
The financial part of the support package outlined in Ireland’s bid will only become payable in the event that Dublin is chosen as the location to host the EBA.