Written Answers Nos 113-134
113. Deputy Michael McGrath asked the Minister for Finance the number and overall value of IBRC private dwelling house, PDH, residential mortgages sold by the special liquidator; the details of each transaction including the identity of the purchaser; the number and overall value of PDH residential mortgages held by IBRC; and if he will make a statement on the matter. [53778/17]
View answer114. Deputy Michael McGrath asked the Minister for Finance the number and overall value of IBRC buy-to-let mortgages sold by the special liquidator; the details of each transaction including the identity of the purchaser; the number and overall value of BTL mortgages held by IBRC; and if he will make a statement on the matter. [53779/17]
View answerI propose to take Questions Nos. 113 and 114 together.
As the Deputy is aware, for operational reasons the loan assets of Irish Bank Resolution Corporation Limited (in Special Liquidation) (“IBRC”) were divided into eight portfolios: Evergreen, Rock, Salt, Sand/Pearl, Stone, Pebble, Quartz and Amber.
The Sand portfolio originally comprised 12,702 Irish originated residential mortgages with a par value of €1.8bn, most of which had transferred from Irish Nationwide Building Society. In the first sales process, 64% of the Sand portfolio was sold to two buyers, namely Shoreline Residential Limited and Mars Capital Ireland Limited.
Subsequently, the remaining 36% of the unsold residential mortgages from Project Sand were sold as two further sales tranches, Project Pearl Tranche 1 and Project Pearl Tranche 2. The first of these tranches? was sold to The Governor and Company of the Bank of Ireland and the second tranche was sold to Mars Capital No. 3 Limited and Mars Capital No. 4 Limited.
PDH mortgages accounted for 83% of the IBRC mortgages sold in the special liquidation with BTL mortgages accounting for 17%.
115. Deputy Michael McGrath asked the Minister for Finance the number and overall value of IBRC commercial loans sold by the special liquidator; the details of each transaction including the identity of the purchaser; the number and overall value of commercial loans held by IBRC; and if he will make a statement on the matter. [53780/17]
View answer116. Deputy Michael McGrath asked the Minister for Finance the number and overall value of IBRC SME commercial loans sold by the special liquidator; the details of each transaction including the identity of the purchaser; the number and overall value of SME commercial loans held by IBRC; and if he will make a statement on the matter. [53781/17]
View answerI propose to take Questions Nos. 115 and 116 together.
The information requested is not held within the Department. The Special Liquidators are in the process of compiling a response to this question which I will forward to the Deputy at the earliest opportunity.?
However, at a high level, as the Deputy is aware, for operational reasons the loan assets of IBRC were originally divided into six portfolios (and then split into two further portfolios): Evergreen, Rock, Salt, Sand/Pearl, Stone, Pebble, Quartz and Amber. All with the exception of project Sand/Pearl and project Evergreen were made up of, or had an element of commercial loans included in them.
I would draw the Deputy's attention to page 8 of the progress update report from June 2014 (http://www.finance.gov.ie/wp-content/uploads/2017/07/IBRC-Progress-Update-Report-6th-June-2014.pdf) which gives a good overview of what each portfolio was made up of at the start of the loan sales process. Pages 8 and pages 15 of the progress update report from March 2015
(http://www.finance.gov.ie/wp-content/uploads/2017/07/IBRC-Progress-Update-Report-6th-June-2014.pdf) gives a further update on this and the wave 2 sales process.
117. Deputy Michael McGrath asked the Minister for Finance the amount received to date in respect of fees for the 2008 bank guarantee scheme and the eligible liabilities guarantee scheme; the proceeds received from the sale of banking-related assets; the value of the various shareholdings the State has in respect of banks; and if he will make a statement on the matter. [53782/17]
View answerIn response to the Deputy’s question, I can confirm that a total of €4.5bn has been received to date relating to the CIFS and ELG schemes. This includes €0.5bn from IBRC.
Proceeds from the sale and redemption of the State’s investments in the banks total €12.6bn (including accrued interest at the date of sale/redemption). In addition, a further €2.0bn has been received in the form of interest coupons and dividends.
The value of the State’s remaining equity stakes in the banks, as at close of business 11 December, were:
|
Allied Irish Banks |
€10.5bn |
|
Bank of Ireland |
€1.0bn |
|
Permanent TSB |
€0.8bn |
|
Total |
€12.3bn |
Source: ISE
118. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has issued guidance to financial institutions for assessing loan applications on the issue of considering evidence of gambling transactions on the bank statements of persons who have applied to the institution for a loan; and if he will make a statement on the matter. [53783/17]
View answerI have been informed by the Central Bank that it has not issued any guidance to financial institutions on the consideration of evidence of gambling transactions as part of the loan application process.
The decision to grant or refuse credit is a commercial decision on the part of a regulated entity that must be conducted in accordance with applicable requirements of Irish financial services legislation. These include requirements to conduct a proper creditworthiness assessment.
As I previously said in relation to a similar question last year (reference 23864 of 21 July), prior to offering a product or service, a regulated entity must gather and record sufficient information from the consumer appropriate to the nature and complexity of the product or service and must carry out an assessment of affordability to ascertain the personal consumer's likely ability to repay the debt over the duration of the agreement, in accordance with the requirements of the Consumer Protection Code 2012.
On the issue more generally, in the case of all mortgage products provided to personal consumers, the assessment must include consideration of the results of a test on the personal consumer’s ability to repay the instalments, over the duration of the agreement, on the basis of a 2% interest rate increase, at a minimum, above the interest rate offered to the personal consumer. This test does not apply to mortgages where the interest rate is fixed for a period of five years or more. Where the lender offers an introductory interest rate, it must carry out the 2% interest rate test on the variable interest rate to be applied after the introductory period has ended if known at the time of the offer of the introductory interest rate, or on the current variable interest rate, if the variable interest rate to be applied after the introductory period has ended is not yet known.
It should be noted that the European Communities (Consumer Credit Agreements) Regulations 2010 apply to the provision of certain credit for amounts between €200 and €75,000. Part 2 of the Regulations include an obligation on creditors to assess the creditworthiness of consumers, on the basis of sufficient information obtained from the consumer.
119. Deputy Michael McGrath asked the Minister for Finance if following their appointment the special liquidators of IBRC changed the interest rates being charged by the bank on commercial loans; and if he will make a statement on the matter. [53784/17]
View answerI am advised by the Special Liquidators that in certain circumstances there would have been a change in interest rates on commercial loans following their appointment. However, any change in interest rate on commercial loans could only be sanctioned by the credit committee of IBRC. Any such changes would have to be recommended by the case staff before being considered by credit committee. The credit committee would then consider all relevant factors, including the financial position of the borrower, when determining whether a change in interest rate margin was approved.
120. Deputy Michael McGrath asked the Minister for Finance the procedure in place from the date of nationalisation and, if different, from the date of the appointment of the special liquidators for the setting and of changing of interest rates on specific commercial loans in respect of IBRC; and if he will make a statement on the matter. [53785/17]
View answerAs the Deputy is aware, the ongoing Commission of Investigation in relation to IBRC is investigating all transactions, activities and management decisions, other than those relating solely to the acquisition of assets by the National Asset Management Agency, which occurred between 21 January 2009 (being the date of the nationalisation of IBRC) and 7 February 2013 (being the date of the appointment of the Special Liquidators to IBRC). As part of this, the Sole Member will investigate whether the interest rates or any extension to interest rates or any periods for repayments were given by IBRC on preferential terms that were unduly favourable to any borrower, where those interest rates resulted in a differential of more than €4 million in interest due over the standard applicable interest rates for loans of that nature or where the amendments give rise to or are likely to give rise to potential public concerns.
Both Houses of the Oireachtas approved these terms of reference in June 2015. It is important that I do not interfere with or prejudice the important work to be conducted by the Commission of Investigation. In these circumstances it would be inappropriate for me to comment publicly in respect of the various transactions, management decisions and actions that may fall within the scope of the review.?
121. Deputy Michael McGrath asked the Minister for Finance the average interest rate charged on private dwelling house mortgages, buy-to-let mortgages, SME commercial loans and other commercial loans in IBRC’s loan book; and if he will make a statement on the matter. [53786/17]
View answerThe following table outlines the number and value of commercial loans (including SME and other commercial loans) as at 7 February 2013:
|
Interest Rate |
No of Accounts |
Balance - €m's |
|
<1% |
166 |
399 |
|
1% - 1.99% |
920 |
8,658 |
|
2% - 2.99% |
2,729 |
7,232 |
|
3% - 3.99% |
1,568 |
4,893 |
|
4% - 4.99% |
392 |
259 |
|
5% - 5.99% |
271 |
391 |
|
6% - 6.99% |
132 |
159 |
|
7% - 7.99% |
67 |
83 |
|
>8% |
66 |
56 |
The Special Liquidators have advised that balances with a rate of less that 1% primarily related to distressed loans where the loan was restructured or where the borrower was in liquidation or administration and the prospect of any future recovery was remote.
The Special Liquidators are in the process of compiling a response to the remainder of the question which I will forward to the Deputy at the earliest opportunity.?
Given that IBRC is going through a liquidation process, the ability to collate and report information of this detail in such a short period of time is not as feasible as it would be for a bank that is not in wind-down. The Special Liquidators have advised that the delay in issuing the response is due to the information not being readily available on the systems that are being used in the bank and that manual collation of the information is required.
122. Deputy Michael McGrath asked the Minister for Finance the status of the special liquidation of IBRC; the details of the portfolio that is remaining; the estimated timeframe; the financial outturn from the liquidation; and if he will make a statement on the matter. [53787/17]
View answerThe Special Liquidators of IBRC published a progress update report on 5 May 2017 which provides the status of the liquidation as at 31 December 2016, this is available on the Department of Finance website at http://www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf. A further progress update will be published in H12018 which will provide the status of the liquidation as at 31 December 2017.
The Special Liquidators have advised that there are approximately €3.5bn of loans remaining. The reason that these loans have not been sold is primarily due to ongoing litigation. It is not possible to provide a timeframe for the completion of the sale of these loans at this time due to the aforementioned litigation. The financial outturn from the liquidation will not be known until all legal proceedings have been finalised, all assets have been realised and all creditor claims have been adjudicated on.
123. Deputy Michael McGrath asked the Minister for Finance the number of rent receivers appointed to date in respect of buy-to-let properties for each of the State-supported banks; the number of buy-to-let properties affected by such appointments; the number of rent receivers expected to be appointed over the remainder of 2017; the detail of the operation of the rent receivers; the impact on the tenants concerned; his policy on the appointment of rent receiver; and if he will make a statement on the matter. [53788/17]
View answerStatistics from the Central Bank of Ireland's Residential Mortgage Arrears and Repossessions Statistics: Q3 2017, show that rent receivers were appointed to 390 BTL accounts during the third quarter of 2017; this is down from 430 accounts in the previous quarter and continues the downward trend evidenced in recent quarters.
In relation to the State supported banks, the figures below relate to September 2017.
The AIB policy is to appoint a Fixed Asset Receiver with intention to sell. In the event that a Fixed Asset Receiver is unable to progress a sale they will continue to collect rent where feasible. ‘Rent Receiver’ is only appointed in exceptional circumstances where it is not intended to sell the asset. There are currently 459 buy to let properties categorised as having rent receivers assigned to them, however, all of these were appointed as Fixed Asset Receivers and were not appointed with the sole purpose of collecting rent.
In relation to PTSB, rent receivers are appointed to 557 properties. This compares with 423 properties in 2016.
My Department was unable to get more updated figures in the timeframe available but will forward them to the Deputy within the next week.
124. Deputy Michael McGrath asked the Minister for Finance the gross amount of corporation tax paid in 2017 by the top ten multinational groups as measured by corporation tax paid; the proportion this represents of overall corporation tax paid in 2017; the gross amount paid by the top 20 multinational groups in 2017; the proportion this represents; and if he will make a statement on the matter. [53789/17]
View answerI am advised by the Revenue Commissioners that in relation to Corporation Tax paid by the top groups, data is not yet available for 2017 as the receipts for the calendar year are not yet complete and have not been analysed. The latest available information is in respect of net receipts in 2016.
I am advised that the Corporation Tax paid by the top 10 groups in 2016 is €2,999m while the Corporation Tax paid by the top 20 was €3,738m. This represents respectively 41% and 51% of the overall Corporation Tax paid in 2016.
125. Deputy Michael McGrath asked the Minister for Finance the book value and estimated market value of the loan assets held by NAMA; the details by geographic area, for example, Ireland, the UK and so on; if a decision has been made to accelerate the disposal of NAMA assets; and if he will make a statement on the matter. [53790/17]
View answerThe most recent details on NAMA's remaining portfolio are available in the Agency's quarterly section 55 accounts for Q2 of 2017. This report is publically available under the Publications section of the NAMA website. In particular, page 29 of the section 55 accounts details the book value of NAMA's loan assets at 30 June 2017. As outlined in these accounts, the carrying value of NAMA’s loan portfolio at 30 June 2017, net of cumulative impairment, was €3.7 billion.
Regarding the geographic breakdown of the remaining portfolio, I am advised that, at 30 June 2017, 85% of the assets securing NAMA’s loan portfolio were located in Ireland, 10% were located in the UK (including Northern Ireland), 4% was located in the rest of the world and the remaining 1% related to non-real estate assets.
It is expected that updated information will be available after I receive NAMA’s section 55 report and accounts for Q3 in the coming weeks. I expect to lay that report before the Oireachtas as soon as possible thereafter.
I am advised that the NAMA Board has devised and is implementing its strategy to deleverage all the assets by end-2020 while also facilitating housing and commercial office space delivery. No decision has been made to accelerate the disposal of NAMA’s remaining assets as to do so may compromise NAMA’s statutory objectives to obtain the best achievable return. NAMA is currently on target to deliver a €3 billion surplus which I very much welcome.
127. Deputy Michael McGrath asked the Minister for Finance the amount and purpose of public funding that has been required to date by the credit union sector; the amount collected from credit unions by way of the levy; and if he will make a statement on the matter. [53792/17]
View answerFurther to Parliamentary Question 152 on 13 July 2017, there are currently three funds in place which can be utilised under certain conditions to fund credit unions, two of which have been supported by public funding.
1. The Credit Institutions Resolution Fund (CIRF)
The CIRF was established under Section 10(1) of the Central Bank and Credit Institutions (Resolution) Act 2011 (2011 Act). The Government contributed €250 million to the Fund in December 2011 to provide a source of funding for the resolution of financial instability in, or an imminent serious threat to the financial stability of an authorised credit institution, and in particular:-
- To reimburse the Minister for any provision of a financial incentive pursuant to section 46;
- To provide funds for any payment required pursuant to section 37(1), 42(5), 48 or 98;
- With written consent of the Minister, to provide capital for a bridge-bank; and
- To meet the Bank's expenses in discharging its functions under this Act.
The CIRF Levy commenced in October 2012 and levies collected from credit unions to date amount to €36.8 million. To date circa €31 million has been provided to support resolution actions in the credit union sector.
2. The Stabilisation Fund
In accordance with Part 4 of the Credit Union and Co-operation with Overseas Regulators Act 2012 credit unions contribute annually to a statutory Stabilisation Fund. The Stabilisation Fund, contained within the Credit Union Fund, is available to all credit unions with a reserve ratio equal to or greater than 7.5% of the credit union’s total assets and less than 10% and where the Central Bank assesses the credit union as viable. Stabilisation support will be provided to address short-term problems at credit unions that are viable but undercapitalised. Payment of an annual Stabilisation Levy commenced in 2015 (for a period commencing on 1 October 2014) and to date levies collected amount to €9.9 million. There have been no drawdowns, to date, from the Stabilisation Fund.
A review of the Stabilisation Levy was carried out in October 2017 and is due to be published shortly.
3. The Credit Union Fund
The Credit Union Fund was established under section 57 of the Credit Union and Co-operation with Overseas Regulators Act 2012 (2012 Act) for a number of purposes including the provision of stabilisation support, but primarily to provide a source of financial support for the restructuring of credit unions under the Credit Union Restructuring Board (ReBo) and to meet the expenses of ReBo in discharging its functions. The Government provided €250 million? to the Credit Union Fund specifically for restructuring under ReBo. The Restructuring Levy (ReBo Levy) is provided for under section 47 of the 2012 Act and commenced in 2014. Levies collected up to and including 2017 from the credit union sector amount to €11 million, circa 50% of ReBo's total gross expenditure. Approximately €22.6 million has been drawn from the Credit Union Fund for restructuring purposes. ReBo concluded its restructuring work on 31 March 2017 and is currently being wound down.
128. Deputy Michael McGrath asked the Minister for Finance the number of applications made and accepted, respectively, for declined insurance in each month of 2017 and each year since 2014 in tabular form; and if he will make a statement on the matter. [53793/17]
View answerThe operation of the Declined Cases Agreement is not a function that either I, as Minister for Finance, or my Department have responsibility for.
Having said that, it should be noted that the Cost of Insurance Working Group recommended the Declined Cases Agreement should be made more transparent under the Report on the Cost of Motor Insurance. On foot of this recommendation, Insurance Ireland submitted a report on the operation of the Agreement to my Department in July of this year. In their report, Insurance Ireland states that it “believes that the time may be correct for a review of elements” of the Agreement. My Department accepted this proposal and has since hosted two workshops with relevant stakeholders who are examining what elements of the Agreement need to be amended or refined. I understand further workshops will take place in the New Year.
In relation to the specific data sought by the Deputy, my officials contacted Insurance Ireland seeking the relevant information. In response Insurance Ireland provided statistics on the number of cases that they have dealt and these are set out in the table below. The figures provided for 2017 relate only to the first six months of the year as the figures for the second half of the year will not be available till early 2018.
In relation to these cases Insurance Ireland have informed my Department that they secured a quotation for the applicants in question through the Agreement and as such they therefore consider all applications to have been ultimately successful.
|
Year 2017 |
Total |
Year 2016 |
Total |
Year 2015 |
Total |
Year 2014 |
Total |
|
January |
113 |
January |
128 |
January |
91 |
January |
39 |
|
February |
109 |
February |
121 |
February |
102 |
February |
42 |
|
March |
126 |
March |
139 |
March |
122 |
March |
53 |
|
April |
139 |
April |
129 |
April |
107 |
April |
64 |
|
May |
147 |
May |
158 |
May |
103 |
May |
93 |
|
June |
155 |
June |
206 |
June |
117 |
June |
56 |
|
July |
n/a |
July |
181 |
July |
94 |
July |
49 |
|
August |
n/a |
August |
172 |
August |
65 |
August |
55 |
|
September |
n/a |
September |
181 |
September |
75 |
September |
69 |
|
October |
n/a |
October |
193 |
October |
91 |
October |
58 |
|
November |
n/a |
November |
161 |
November |
127 |
November |
48 |
|
December |
n/a |
December |
172 |
December |
70 |
December |
43 |
|
TOTAL |
[789] |
|
1941 |
|
1164 |
|
669 |
129. Deputy Thomas P. Broughan asked the Minister for Finance his views on the recent reduced income tax receipts to November 2017; the way in which these tally with recent gains in employment; and if he will make a statement on the matter. [53905/17]
View answerThe position is that at end-November 2017, cumulative income tax receipts of €18,283 million were marginally down 1.4 per cent or €251 million against profile. This represents strong annual growth of 4.2 per cent or €738 million. Furthermore, it is also worth pointing out that there were significant one-off income tax payments in the comparable period last year, amounting to c. €300 million. Excluding, these the underlying income tax position is showing a year-on-year increase of 6.0 per cent or €1.0 billion.
The shortfall against target is across a range of income tax components. It is important to point out that the key income tax component, i.e. PAYE income tax, which accounts for around 65 per cent or €13.1 billion of total income tax receipts is broadly in-line with target at end-November, down just €34 million or just under 0.3 per cent. This represents robust year-on-year growth of 8.8 per cent or €957 million which reflects solid wage growth and continued strong increases in full time employment.
In relation to USC, overall receipts are on target at end-November.
Of the remaining components of income tax, some relate to unearned income and are not directly impacted by employment or wage developments (e.g. Deposit Interest Retention Tax and Life Assurance Exit Tax). The majority of these components are below target at end-November, and therefore having a ‘drag’ on overall income tax receipts at end-November 2017.
The other main contributing factor to the overall shortfall is the Schedule D income tax provisional receipts, which are €119 million or 6.6 per cent below target but up 2.3 per cent in year-on-year terms.
The position is that the final Schedule D returns in respect of 2016 incomes were only due to be filed in November this year and Revenue is still in the process of reviewing these.
Schedule D income earners were also required to pay preliminary tax in respect of 2017 in October/November this year. However, the associated final returns are not required to be filed until October/November 2018. It will only be then that Revenue can fully advise why receipts from this cohort of income earners was below expectations.
130. Deputy Thomas P. Broughan asked the Minister for Finance when he expects the escrow account for the tax liability of a company (details supplied) to be in operation; when the full payment will be received; the likely timeframe on the case in the General Court of the European Union; and if he will make a statement on the matter. [53906/17]
View answerWhile the Government has never accepted the Commission’s analysis in the Apple State aid decision, we have always been clear that we are fully committed to ensuring that recovery of the alleged State aid takes place without delay and has committed significant resources to ensuring that this is achieved as quickly as possible.
Significant progress has been made on this complex issue and the establishment of an escrow fund, in compliance with all relevant Irish constitutional and European Union law requirements, is close to completion. This will allow for the collection of the alleged State aid from Apple. The Deputy may be aware of a recent public announcement on progress in this respect. Officials and experts from across the State have been engaged in intensive work to ensure that Ireland complies with all its recovery obligations as soon as possible.
With regard to the appeal, the Government profoundly disagrees with the European Commission’s analysis in the Apple State aid case. An appeal is therefore being brought before the European Courts. Such an appeal takes the form of an application to the General Court of the European Union (GCEU), asking it to annul the Commission’s Final Decision.
The Attorney General prepared the legal grounds in support of the annulment proceedings and the application was lodged in the GCEU in 2016. As is normal practice, a summary of these have been published in the Official Journal of the European Union. They were also published on the Department of Finance’s website in December 2016.
The case has been granted priority status and is progressing through the various stages of private written proceedings before the GCEU. It is at the discretion of the Court to determine if there will be oral proceedings, either in public or in private. It will likely be several years before the matter is ultimately settled by the European Courts.
As this is the subject of open legal proceedings, it will not be possible to comment further, in particular on any of the individual elements of the State’s legal case in defence of our position. This is important to ensure that we do not prejudice our own legal case.
131. Deputy Bernard J. Durkan asked the Minister for Finance if the Revenue Commissioners can arrange for a deferral of payment in respect of income tax owed in the case of a person (details supplied); and if he will make a statement on the matter. [53929/17]
View answerI am advised by Revenue that its clear preference is always to engage with taxpayers experiencing tax payment difficulties and agree mutually acceptable solutions rather than deploying debt collection/enforcement sanctions to secure payment of outstanding liabilities.
However, such engagement is dependent on open and frank discussion with the relevant taxpayer to identify and implement a solution. Where there is poor or non-engagement then Revenue is left with no alternative but to use its enforcement powers to secure collection, including statutory interest where applicable.
The person in question has a very poor tax compliance record and has accumulated significant tax debts over a number of years. The person has also failed to file their most recent VAT return, which has resulted in estimates being raised in respect of that period.
Revenue has confirmed to me that it has already made every effort to engage with the person over an extended period of time but unfortunately has received no response to date. Revenue also confirmed that it previously provided the Deputy with the contact details of an official who would work with the person to advance matters and has assured me that this arrangement is still available.
To move the issue forward I would urge the Deputy to advise the person to make immediate contact with the nominated official. If the person fails to make contact, Revenue will be left with no alternative but to continue with debt collection/enforcement action.
132. Deputy Michael McGrath asked the Minister for Finance the number of households in negative equity; his views on the implications of this for the wider economy; and if he will make a statement on the matter. [54016/17]
View answerThis issue is discussed in the Central Bank’s Macro-Financial Review published this week - https://www.centralbank.ie/docs/default-source/publications/macro-financial-review/macro-financial-review-2017-ii.pdf
Box 2: Negative equity in the Irish housing Market: recent developments
This notes that approx. 75,000 mortgages are now in negative equity, down from a peak of 320,000 in Q4 2012 .
For Primary Dwelling Homes, 8.7 per cent of loans remain in negative equity (down from 36.2 per cent in Q4 2012).
BTL properties had a higher share of negative equity throughout the period with 15.5 per cent of BTLs currently in negative equity, down from 54.6 per cent in Q4 2012.
Negative equity in the Irish mortgage market has been in decline in recent years. As well as being of benefit to individual borrowers, this can be beneficial to overall financial stability, including through positive effects on consumption and consumer confidence and by aiding housing mobility.
In addition it is worth pointing out that a total stock of over 120,000 PDH mortgage accounts were classified as restructured at end-June 2017. At end-June 2017 87 per cent of restructured accounts were deemed to be meeting the terms of their arrangement. For BTL a total stock of over 23,000 mortgage accounts were categorized as restructured at end-June 2017. 87 per cent of the total stock of restructured accounts were meeting the terms of their current restructure. This shows that engagement by borrowers with their lenders works.
I would also like to draw the Deputy's attention to recent progress made by the Government in assisting those in mortgage arrears. The Abhaile service helps borrowers in arrears to find the best solutions and keep them, if possible, in their own homes. This is assisting borrowers, particularly those in longer term arrears. A dedicated adviser will work with borrowers in arrears and their lender to find the best solution for them.
Borrowers can get free advice from an expert financial adviser who can help them to work through their financial situation and where possible help them to remain in their home. An Expert adviser could be from MABS or a Personal Insolvency Practitioner (PIP) or an accountant.
Borrowers may also need legal advice and under Abhaile and they can have a free meeting with a solicitor.
If called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. A MABS staff member will also be present at court to help them.
A Helpline is available Monday to Friday and a face-to-face service which is completely free, confidential and independent is also available in more than 60 MABS locations nationwide.
133. Deputy Niall Collins asked the Minister for Finance the full-year cost of increasing the lifetime limit for capital gains tax entrepreneur relief to €1 million, €5 million, €10 million and €15 million, respectively; and if he will make a statement on the matter. [54125/17]
View answerIt is assumed that the Deputy is referring to the revised Entrepreneur Relief provided for in s597AA of the Taxes Consolidation Act 1997. I am advised by Revenue that the current lifetime limit applicable to this relief is €1 million in chargeable gains. The cost of increasing this limit to the €5 million, €10 million and €15 million amounts suggested by the Deputy is €49 million, €54 million, and €56 million respectively in a full year. These costs are on the basis of various assumptions regarding asset disposals. Information in respect of claims of the relief as introduced in Budget 2016 should become available for the first time in mid 2018 when 2016 tax year returns have been fully analysed.
134. Deputy Niall Collins asked the Minister for Finance the average Irish SME loan lending rate; the average EU rate; and the rate for each EU 27 member state based on available data in tabular form. [54131/17]
View answerI have been informed by the Central Bank as set out in the Business Credit and Deposits statistical Table A.14.1, available on the the website of the Central Bank, the outstanding SME interest rate as at end-Q2 2017 is 3.21 per cent. The gross new lending weighted interest rate for Q2 2017 is 4.01 per cent.
The Central Bank does not collect data on SME interest rates outside of Ireland. However, the Deputy may wish to note that the latest ECB Survey on the access to finance of enterprises (SAFE) in respect to April 2017-September 2017 published on November 29, 2017 contains some information on interest rates across EU Member States.
