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Tuesday, 17 Apr 2018

Written Answers Nos. 196-212

Departmental Staff Data

Questions (196)

Éamon Ó Cuív

Question:

196. Deputy Éamon Ó Cuív asked the Tánaiste and Minister for Foreign Affairs and Trade the number of clerical officers and clerical assistants in his Department on temporary contracts by years of service; if these officers will be offered permanent positions in the Civil Service when they have served a fixed period of time; and if he will make a statement on the matter. [16431/18]

View answer

Written answers

Each year my Department recruits Temporary Clerical Officers for the Passport Service to meet the seasonal demand in passport applications.

We have seen a marked increase in demand for passports and citizenship via foreign birth registration from applicants since the Brexit vote. Therefore, Temporary Clerical Officers have also been recruited to assist with this extra demand in both the Passport Office and in Consular Division.

In response to the increase in demand my Department is also recruiting permanent Clerical Officers.

My Department does not recruit Temporary Clerical Assistants.

For 2018, the Department of Public Expenditure and Reform has sanctioned the recruitment of 228 Temporary Clerical Officers for my Department, to be employed for a maximum of 6,654 weeks. As of Friday 13 April 2018 there are 174 Temporary Clerical Officers in the Passport Service.

The table details the number of Temporary Clerical Officers serving in the Passport Service at end June in the last 3 years.

Year

Temporary Clerical Officers

June 2017

232

June 2016

200

June 2015

164

My Department abides by the Protection of Employees (Fixed-term Work) Act 2003 which, inter alia, makes provision for certain former fixed-term employees.

Immigration Data

Questions (197)

John Deasy

Question:

197. Deputy John Deasy asked the Tánaiste and Minister for Foreign Affairs and Trade if an estimate has been made as to the number of unaccounted for American citizens currently resident here, that is, Irish citizens who moved to the United States of America and became American citizens before returning here and who have not registered with the United States Embassy. [16506/18]

View answer

Written answers

My colleague the Minister of State for the Diaspora and International Development, Ciarán Cannon T.D., last month published a new Report on Addressing Challenges Faced by Returning Irish Emigrants.

That Report’s analysis of census data shows that, in 2016, 26,428 Irish emigrants returned home and that in the previous year the United States was the usual residence for 2,566 of them.

It is likely that some of these people returned as dual Irish and US nationals and some may have registered with the US Embassy as US citizens, as is their entitlement. We have, however, no right of access to the records of the US Embassy and therefore we have no way of knowing how many of these dual-citizens have or have not registered with the US Embassy.

Visa Data

Questions (198)

John Deasy

Question:

198. Deputy John Deasy asked the Tánaiste and Minister for Foreign Affairs and Trade the number of working holiday authorisations granted to American citizens who have applied through Irish embassies and consulates in the United States over the past five years. [16507/18]

View answer

Written answers

In 2008 Ireland and the US signed a memorandum of understanding on a 12 month Intern Work and Travel Pilot Programme (a.k.a. the Working Holiday Agreement) that enables Irish and US citizens to work and travel in each other's country for up to 12 months.

The agreement reflects not only the close historical and cultural links between Ireland and the United States of America, but also the vibrancy of the modern economic and commercial relationship between our countries.

The Working Holiday Agreement is intended to facilitate US citizens who wish to travel for an extended period in Ireland and to engage in employment as an incidental aspect of their holiday.

The total numbers of WHAs granted to US Citizens that have applied through the Irish Embassy in Washington, D.C., and our six Consulates across the US over the last five years, are as follows:

Total Over 5 Years:

Year

Number granted

2017

528

2016

426

2015

293

2014

323

2013

202

Total

1,772

Passport Applications Data

Questions (199)

John Deasy

Question:

199. Deputy John Deasy asked the Tánaiste and Minister for Foreign Affairs and Trade the number of Irish passport applications received and approved through each application channel; and the applicants’ countries of origin since 23 June 2016, the date of the UK Brexit referendum. [16508/18]

View answer

Written answers

The Passport Service offers a range of convenient channels for submission of passport applications by Irish citizens at home and abroad. For citizens resident in the state, applications can be submitted through the Passport Express postal service, through the award-winning online passport application service or, in certain circumstances, in person through the counter service in Dublin and Cork.

Table 1 outlines the total number of passport applications received, approved and issued to citizens residing in the state by application channel for the period from 23 June 2016 to 12 April 2018:

Table 1: Passports issued to applicants resident in the State during the period from 23 June 2016 to 12 April 2018

APPLICATION CHANNEL

PASSPORTS ISSUED

An Post Passport Express

715,702

Online Applications

108,483

Counter Applications (Dublin and Cork)

22,446

TOTAL

846,631

Residents of Northern Ireland may submit applications through the online passport application service, through the Northern Ireland Passport Express service and, in certain circumstances, through the Dublin or Cork counter service.

Passport applications from Irish citizens residing outside the island of Ireland may be submitted either through the online passport application service or through the network of Irish Embassies and Consulates worldwide.

For the period of 23 June 2016 to 12 April 2018, the total number of passports issued to Irish citizens on foot of an application through the Northern Ireland Passport Express service or through the online passport application service where a delivery address in Northern Ireland is noted was 139,062.

For the same time period, the total number of passports issued to Irish citizens on foot of an application made by post or in person through the London Passport Office or through the online passport application service where a delivery address was in Great Britain is noted was 185,977.

Table 2 outlines the country by country breakdown of the passports issued through the online passport application service for the time period requested. The country cited is based on the applicant’s postal address.

Table 3 lists the number of passports issued by each of the Irish embassies for the time period requested.

Both tables exclude applications from Northern Ireland and Great Britain.

Table 2: List of passports issued following applications via the online passport application service for the period 23 June 2016 to 12 April 2018 (Excluding Ireland, Northern Ireland and Great Britain):

COUNTRY OF RESIDENCE

PASSPORTS ISSUED

AFGHANISTAN

4

ALGERIA

2

ANDORRA

3

ANTIGUA AND BARBUDA

1

ARGENTINA

39

ARUBA

1

AUSTRALIA

3,665

AUSTRIA

82

BAHAMAS

3

BAHRAIN

19

BANGLADESH

3

BARBADOS

5

BELARUS

4

BELGIUM

242

BELIZE

1

BERMUDA

28

BOSNIA AND HERZEGOVINA

3

BOTSWANA

3

BRAZIL

41

BRUNEI DARUSSALAM

2

BULGARIA

20

CAMBODIA

11

CAMEROON

1

CANADA

1,572

CANARY ISLANDS

13

CAYMAN ISLANDS

35

CHILE

12

CHINA

64

COLOMBIA

15

COOK ISLANDS

2

COSTA RICA

4

CROATIA

6

CYPRUS

22

CZECH REPUBLIC

47

DEMOCRATIC REPUBLIC OF CONGO

1

DENMARK

92

DOMINICAN REPUBLIC

2

EAST TIMOR

1

ECUADOR

2

EGYPT

27

ERITREA

1

ESTONIA

8

ETHIOPIA

1

FALKLAND ISLANDS (MALVINAS)

1

FIJI

2

FINLAND

44

FRANCE

721

GEORGIA

3

GERMANY

737

GHANA

2

GIBRALTAR

10

GREECE

37

GUERNSEY

24

HONDURAS

3

HONG KONG

81

HUNGARY

25

ICELAND

3

INDIA

40

INDONESIA

12

IRAN, ISLAMIC REPUBLIC OF

1

ISLE OF MAN

62

ISRAEL

43

ITALY

221

JAMAICA

1

JAPAN

77

JORDAN

13

KENYA

27

KOSOVO

2

KUWAIT

5

LAO PEOPLE'S DEMOCRATIC REPUBLIC

2

LATVIA

5

LEBANON

6

LIBYA

2

LUXEMBOURG

124

MACAU SAR

3

MALAWI

4

MALAYSIA

31

MALDIVES

1

MALTA

36

MARTINIQUE

1

MAURITIUS

17

MEXICO

48

MONACO

7

MOROCCO

1

MOZAMBIQUE

2

MYANMAR

3

NAMIBIA

1

NEPAL

1

NETHERLANDS

457

NETHERLANDS ANTILLES

1

NEW ZEALAND

949

NICARAGUA

2

NIGERIA

19

NORWAY

61

OMAN

4

PAKISTAN

7

PANAMA

9

PAPUA NEW GUINEA

2

PERU

20

PHILIPPINES

11

PITCAIRN

1

POLAND

31

PORTUGAL

71

PUERTO RICO

2

QATAR

27

REPUBLIC OF SOUTH SUDAN

1

ROMANIA

13

RUSSIA

15

RWANDA

2

SAUDI ARABIA

28

SEYCHELLES

1

SINGAPORE

128

SLOVAK REPUBLIC

11

SLOVENIA

4

SOLOMON ISLANDS

1

SOUTH AFRICA

1,189

SOUTH KOREA REPUBLIC OF KOREA

27

SPAIN

865

SRI LANKA

6

SUDAN

2

SWAZILAND

3

SWEDEN

165

SWITZERLAND

317

SYRIAN ARAB REPUBLIC

3

TAIWAN, PROVINCE OF CHINA

16

THAILAND

81

TRINIDAD AND TOBAGO

14

TUNISIA

1

TURKEY

35

TURKS AND CAICOS ISLANDS

6

U.S. OUTLYING MINOR ISLANDS

2

UGANDA

4

UKRAINE

2

UNITED ARAB EMIRATES

309

UNITED REPUBLIC OF TANZANIA

7

UNITED STATES

6,000

URUGUAY

2

VATICAN CITY STATE

2

VENEZUELA

2

VIETNAM

51

VIRGIN ISLANDS (BRITISH)

3

VIRGIN ISLANDS (U.S)

1

ZAMBIA

6

ZIMBABWE

16

TOTAL

19,617

Table 3: List of passports issued following applications made via Irish embassies and consulates during the period 23 June 2016 to 12 April 2018 (Excluding Ireland, Northern Ireland and Great Britain):

Please Note: Many Irish Embassies are accredited to, and provide passport services for, Irish citizens in more than one country. The following table is organised by receiving Mission. Not all accreditations are listed and listing does not necessarily mean that passport applications have been received from each State of accreditation.

MISSION

ACCREDITED TO:

PASSPORTS ISSUED

ABU DHABI

- UAE, Kuwait, Qatar, Afghanistan

2,641

ABUJA

- Nigeria, Chad, Ghana, Senegal

497

ADDIS ABABA

- Ethiopia, South Sudan

32

ANKARA

- Turkey, Azerbaijan, Iran, Pakistan

191

ATHENS

- Greece, Albania, Serbia

266

BANGKOK

- Thailand, Myanmar

642

BEIJING

- China, Mongolia

1,568

BERLIN

- Germany

2,990

BERNE

- Switzerland, Algeria, Liechtenstein

1,478

BRASILIA

- Brazil

221

BRATISLAVA

- Slovakia

47

BRUSSELS

- Belgium

1,117

BUCHAREST

- Romania, Moldova, Macedonia

135

BUDAPEST

- Hungary, Republic of Kosovo, Montenegro

114

BUENOS AIRES

- Argentina, Bolivia, Chile, Paraguay, Uruguay

316

CAIRO

- Egypt, Jordan, Lebanon, Syria,

281

CANBERRA

- Australia, Fiji, New Zealand, Solomon Islands, Papua New Guinea

18,691

COPENHAGEN

- Denmark, Iceland

412

DAR-ES-SALAAM

- Tanzania, Burundi, Eritrea

65

FREETOWN

- Sierra Leone

6

HANOI

- Vietnam, Cambodia, Laos

230

HELSINKI

- Finland

143

JAKARTA

- Indonesia

118

KAMPALA

- Uganda, Rwanda

56

KUALA LUMPUR

- Malaysia

279

LILONGWE

- Malawi

44

LISBON

- Portugal, Morocco

308

LJUBLJANA

- Slovenia, Bosnia and Herzegovina

71

LUSAKA

- Zambia, Namibia

175

LUXEMBOURG

- Luxembourg

456

MADRID

- Spain, Andorra, Tunisia

2,828

MAPUTO

- Mozambique, Angola, Botswana

69

MEXICO CITY

Colombia, Costa Rica, Cuba, Guatemala, Nicaragua, Peru, Venezuela

270

MOSCOW

- Russia, Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan

164

NEW DELHI

- India, Bangladesh, Nepal, Sri Lanka, Republic of Maldives

247

NICOSIA

- Cyprus

242

NAIROBI

- Kenya

108

OSLO

- Norway

135

OTTAWA

- Canada, Bahamas, Jamaica

2,869

PARIS

- France, Monaco

3,695

PRAGUE

- Czech Republic, Ukraine

210

PRETORIA

- South Africa, Democratic Republic of Congo, Mauritius, Zimbabwe

5,094

RIGA

- Latvia

24

RIYADH

- Saudi Arabia, Bahrain, Oman, Yemen

759

ROME

- Italy, Libya, San Marino

765

SEOUL

- South Korea, Democratic People’s Republic of Korea

148

SINGAPORE

- Singapore, Philippines, Brunei, East Timor

866

SOFIA

- Bulgaria, Armenia, Georgia

77

STOCKHOLM

- Sweden

430

TALLIN

- Estonia

23

TEL AVIV

- Israel

347

THE HAGUE

- Netherlands

1,317

TOKYO

- Japan

245

VALETTA

- Malta

204

VIENNA

- Austria

431

VILNIUS

- Lithuania, Belarus

61

WARSAW

- Poland

245

WASHINGTON

- USA

24,256

ZAGREB

- Croatia

7

TOTAL

79,726

Passport Services

Questions (200)

Róisín Shortall

Question:

200. Deputy Róisín Shortall asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to restore the free passport scheme for persons over 66 years of age that was discontinued as a cost saving measure in 2011 in view of improved public finances; and if he will make a statement on the matter. [16589/18]

View answer

Written answers

The cost of the standard ten year adult Irish passport compares favourably with many other jurisdictions. At a cost of €80, which breaks down to €8 per year, the Irish passport fee compares with approximately €8.70 per year for a British passport, €8.60 per year for a French passport, €8.90 per year for renewal of an American passport and €17.70 per year for an Australian passport. Given that the production cost of a passport is the same, irrespective of validity, and given that any shortfall in revenue or additional costs would have to be met by the taxpayer, I do not have any plans at this time to waive or reduce the application fee charged to older applicants.

Passport Applications Administration

Questions (201)

Fiona O'Loughlin

Question:

201. Deputy Fiona O'Loughlin asked the Tánaiste and Minister for Foreign Affairs and Trade the length of time to process an adult passport renewal; and if he will make a statement on the matter. [16689/18]

View answer

Written answers

The length of time it takes to process an adult renewal passport application will depend on the channel through which the application is made.

The award winning online passport application service is currently processing applications in 10 working days, plus postage time. It is the fastest and most convenient way for an adult to renew a passport.

An adult renewal application submitted through Passport Express is currently processed in the 15 working day, target timeframe.

I would urge adult applicants wishing to renew their passports, whether residing in Ireland or overseas, to avail of the online passport application service where possible.

Information on the target turnaround time for all categories of applications is updated weekly on the Passport Service website www.dfa.ie/passport.

Passport Services

Questions (202)

Fiona O'Loughlin

Question:

202. Deputy Fiona O'Loughlin asked the Tánaiste and Minister for Foreign Affairs and Trade the communication process in place for a person looking for an update on their passport application; and if he will make a statement on the matter. [16690/18]

View answer

Written answers

The Passport Service has established a dedicated Communication Unit to respond to queries from passport applicants. This Unit can be contacted by telephone, email or by web chat on the contact details provided on the Passport Service website, www.dfa.ie/passport. Due to the high volume of calls currently being received, the Passport Service may not be able to answer as many as it would like to. However, detailed and regularly updated information on passport services; current average turnaround times and comprehensive guides to the various application processes can be consulted on the Passport Service website. In particular I would like to take this opportunity to highlight that applicants can track the status of existing applications at any time through the Passport Service’s online tracker which can be found on the department’s website: https://passporttracking.dfa.ie/.

The Passport Service also has a Customer Care desk in the public offices (Mount Street, Dublin and Cork) where applicants can visit without an appointment for an update on their application.

Passport Applications Administration

Questions (203)

Fiona O'Loughlin

Question:

203. Deputy Fiona O'Loughlin asked the Tánaiste and Minister for Foreign Affairs and Trade if the new online passport portal is delivering passports in the time guaranteed; and if he will make a statement on the matter. [16691/18]

View answer

Written answers

The target turnaround time for passport applications made via the new, online passport application service is 10 working days, plus postage time. This target turnaround time is currently being met and in many cases being exceeded by up to a week. The online passport application service is the cheapest and most convenient way for an adult to renew a passport as it can be done online anywhere in the world, 24 hours per day, 7 days per week and removes the requirement for forms, witnesses or printed photos. I would urge adult applicants wishing to renew their passports, whether residing in Ireland or overseas, to avail of the online passport application service where possible.

Foreign Policy

Questions (204, 205)

Niall Collins

Question:

204. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the recent parliamentary election result in Hungary; and if he will make a statement on the matter. [16744/18]

View answer

Niall Collins

Question:

205. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade his views regarding the freedom of the press and NGOs in Hungary; and if he will make a statement on the matter. [16745/18]

View answer

Written answers

I propose to take Questions Nos. 204 and 205 together.

The elections in Hungary last Sunday week resulted in a two thirds majority for the ruling party led by Prime Minister Victor Orban. The Irish Government will continue to work with the Prime Minister and his administration to ensure that the European Union is equipped for the collective challenges we face, not least in addressing the issues of greatest concerns to our citizens, including Brexit, the Union’s future finances and EMU.

Respect for the fundamental values on which the European Union is founded and which are set out in the Treaty, including respect for the rule of law and freedom of expression, must continue to be at the forefront of all efforts which Member States and the institutions make to tackle the challenges we face.

The overall media environment in Hungary has deteriorated further in recent weeks with the closure of a major independent newspaper. There are also concerns over the civic space available for NGOs to continue to operate in Hungary. The European Commission is, in the first instance, charged with ensuring the application of the treaties and is responsible for promoting the general interest of the Union.

Last December, the Commission announced that it was referring Hungary to the Court of Justice of the European Union in relation to, inter alia, the laws on higher education (the “Lex CEU”) and on NGOs adopted in 2017. In the case of these two issues, Hungary is considered to have failed to address EU concerns about these laws or amend the legislation to bring it in line with EU standards.

I hope that Hungary and the European Commission will engage on these important issues and that, ultimately, a resolution may be achieved.

Foreign Conflicts

Questions (206)

Niall Collins

Question:

206. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade the action that will be taken by the EU following the recent chemical attack in Douma, Syria; and if he will make a statement on the matter. [16746/18]

View answer

Written answers

I was shocked and sickened by the images from the chemical attack which took place in Douma on 7 March, and I condemned it unreservedly in a public statement. In response to that horrific attack on civilians, a number of states took action against facilities related to the production of chemical weapons, with the stated objective of ensuring that such attacks do not recur.

Yesterday, I discussed the situation in Syria with my EU colleagues at the Foreign Affairs Council. We condemned in the strongest possible terms the use of chemical weapons in Syria, and stressed the need to ensure full legal accountability for those responsible for such crimes. We also reiterated our support for the UN-led political negotiations to end the conflict, and the urgent need to reinvigorate the political track.

Ireland is strongly supportive of all efforts to strengthen the global norm prohibiting use of chemical weapons and supports all efforts to increase accountability for their use.

Ireland and the EU provide political and financial support to a broad range of measures which aim to ensure full legal accountability for all war crimes and crimes against humanity committed in Syria. This includes the International, Impartial and Independent Mechanism established by the UN General Assembly to assist in the investigation and prosecution of persons responsible for the most serious crimes under international law committed in Syria, the Independent International Commission of Inquiry on Syria established by the Human Rights Council, and the Organisation for the Prohibition of Chemical Weapons Fact Finding Mission and Joint Investigative Mission with the UN. In addition, Ireland has consistently supported EU sanctions targeting the regime and its supporters, and will continue to do so as long as the situation on the ground justifies these measures. Ireland reaffirms the need to avoid any escalation of the situation in Syria, and our key concern is the protection of civilians.

The situation in Syria is appalling, and the suffering of the Syrian people cannot be ignored. The EU will host a donor conference for Syria later this month, as it did last year. The EU and its Member States are the largest single donor to the effort to support the Syrian people. Since 2012, Ireland has contributed over €95 million to the humanitarian effort in response to the conflict in Syria, including €25 million in 2017 alone. Ireland will make a further pledge at the Brussels conference later this month.

Northern Ireland

Questions (207)

Niall Collins

Question:

207. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on recent efforts to restore the Executive in Northern Ireland; and if he will make a statement on the matter. [16747/18]

View answer

Written answers

Over the course of many months, the Irish and British Governments, as co-guarantors of the Good Friday Agreement, have worked tirelessly to support and facilitate the parties in their efforts to form an Executive.

The devolved, power-sharing institutions of the Good Friday Agreement are the best means for achieving accountable, representative decision-making for all the people of Northern Ireland. The electorate in Northern Ireland affirmed their support for power-sharing through the institutions of the Good Friday Agreement in May 1998 and have provided a mandate to the political parties to form an Executive and Assembly.

Everyone agrees that devolved power-sharing institutions are in the best interests of the people of Northern Ireland and the Government continues to work with the British Government and the parties in Northern Ireland to support that outcome.

Unfortunately, to date, it has not proved possible to reach an agreement on the formation of an Executive, despite intensive engagement. In light of this, the Government has been working with the British Government to consider means by which we can support the political process, in accordance with the Agreement, in the period ahead. We are considering all possible options in this regard. I met with the Secretary of State in Belfast on 10 April and in London yesterday and we are working to find a way forward from the current impasse.

I remain in contact also with the political parties in Northern Ireland, in working to ensure that every avenue is pursued and all possibilities are considered in seeking to secure a return to devolved power-sharing government, as provided for under the Agreement.

The Taoiseach has spoken with Prime Minister May and emphasised the Government’s full commitment to the Good Friday Agreement, and our continuing determination to secure the effective operation of all of its institutions.

The Agreement was voted for by an overwhelming majority of people, in the referendums held, North and South on this island in May 1998. This unassailable democratic foundation places an onus on all with responsibilities and mandates to strive to ensure that the political institutions of the Agreement can operate effectively and that the full promise of the Agreement can be realised, including the commitment to the achievement of full reconciliation.

The Good Friday Agreement is the indispensable framework for providing stable, inclusive, power-sharing government for all the people of Northern Ireland and for sustaining our interlocking relationships – within Northern Ireland, on the island of Ireland and between the UK and Ireland.

As co-guarantors of the Good Friday Agreement, both Governments have an obligation to uphold and protect the letter and spirit of that Agreement and we are continuing to work to that end.

Tax Code

Questions (208, 249)

Thomas P. Broughan

Question:

208. Deputy Thomas P. Broughan asked the Minister for Finance if he will remove VAT and VRT from advanced driver assistance systems on new or older vehicles to incentivise the public to drive much safer vehicles and promote the Vision Zero policy of road safety; and if he will make a statement on the matter. [15744/18]

View answer

Thomas P. Broughan

Question:

249. Deputy Thomas P. Broughan asked the Minister for Finance his plans to remove VAT and VRT from advanced driver assistance systems on new or older vehicles to incentivise the public to drive much safer vehicles and promote the Vision Zero policy of road safety; and if he will make a statement on the matter. [15743/18]

View answer

Written answers

I propose to take Questions Nos. 208 and 249 together.

I am advised by The Revenue Commissioners that the chargeable value for the calculation of Vehicle Registration Tax, the open market selling price (OMSP), is provided for in the Finance Act 1992, section 133. This section provides that the OMSP comprises the price, inclusive of all taxes, duties, enhancements or accessories, that a motor distributor might reasonably expect to fetch for a vehicle on the open market. Advanced driver assistance systems, whether as part of the basic vehicle specification or as an enhancement to the vehicle, form part of the OMSP for VRT purposes.

I am further advised by Revenue that the VAT rating of goods is subject to the requirements of EU VAT law, with which Irish VAT law must comply, and there is no provision in the Directive to allow for the removal of VAT from advanced driver assistance systems.

While all initiatives that promote road safety are welcomed I currently have no plans to propose or make changes to the VAT and VRT systems.

Disabled Drivers and Passengers Scheme

Questions (209)

Willie O'Dea

Question:

209. Deputy Willie O'Dea asked the Minister for Finance his plans to change legislation on the disabled drivers scheme in view of the fact the qualifying conditions seem to be rigid and inflexible and may be causing inequity; and if he will make a statement on the matter. [15828/18]

View answer

Written answers

As the Deputy may be aware, the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.

To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. 

The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant, the scheme cost €65m in each of 2016 and 2017. This figure does not include the revenue foregone in respect of the relief from Motor Tax provided to members of the Scheme. 

Given the scale and scope of the scheme, I have no plans to review the medical criteria at this time.

Home Repossessions

Questions (210)

Éamon Ó Cuív

Question:

210. Deputy Éamon Ó Cuív asked the Minister for Finance the number of family homes that have been repossessed by financial institutions each year since 2000; the steps being taken to reduce this number; and if he will make a statement on the matter. [15951/18]

View answer

Written answers

The Central Bank started collecting and publishing Mortgage Arrears and Repossession statistics in September 2009 and so it is only possible to provide the figures for repossessions by financial institutions from Q4 2009 onwards. 

I have attached a table with the figures requested by the Deputy. 

More generally, the latest Residential Mortgage Arrears and Repossessions Statistics for Q4 2017 which were published on 22 March 2018 are available here https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/residential-mortgage-arrears-and-repossessions-statistics-december-2017.pdf?sfvrsn=4

As you will see from the latest figures, the number of mortgage accounts for principal dwelling houses (PDH) in arrears fell further in Q4 2017. This marks the eighteenth consecutive quarter of decline. In addition the number of PDH mortgage accounts that were classified as restructured at the end of 2017 was 118,477. Of these restructured accounts, 87 per cent were deemed to be meeting the terms of their current restructure arrangement which shows that engagement between borrowers and their lenders works. The number of mortgage accounts in arrears over 720 days also declined in Q4 2017. This was the tenth consecutive decline in this category.

As the Deputy will be aware, within the remit of the Central Bank of Ireland's responsibilities for safeguarding stability and protecting consumers; its approach to mortgage arrears resolution is focused on ensuring the fair treatment of borrowers through a strong consumer protection framework and ensuring that lenders have appropriate arrears resolution strategies and operations. 

The Code of Conduct on Mortgage Arrears (CCMA) forms part of the Central Bank’s Consumer Protection Framework.  It is a statutory Code first introduced by the Central Bank in February 2009, replacing the existing voluntary Code of Practice on Mortgage Arrears issued by the Irish Banking Federation.  The CCMA has been revised three times since 2009, with the current CCMA becoming effective from 1 July 2013.   The CCMA provides a strong consumer protection framework to ensure that borrowers in financial difficulty are treated in a timely, transparent and fair manner by regulated entities and it also includes timelines for regulated entities before they can commence legal proceedings for repossession of a primary residence. 

The CCMA also includes requirements that repayment arrangements be sustainable and based on a full assessment of the individual circumstances of the borrower and that repossession be used only as a last resort.  Borrowers who engage, therefore, benefit from the protections afforded under the Mortgage Arrears Resolution Process (MARP), enhancing their chances of remaining in their homes.  The MARP process is a four-step process that regulated entities must follow and must consider the most suitable arrangement from the suite of options they offer.  Each regulated entity must consider the borrower’s situation in the context of the range of solutions it offers, which may differ from lender to lender.  The CCMA does not prescribe the solution which must be offered and this remains a commercial decision for the lender (outside of a Court process such as insolvency).  The Central Bank has published guidance for supervisors on what constitutes sustainable mortgage arrears solutions. 

At the end of the MARP, regulated entities are required to provide a three-month notice period to allow co-operating borrowers time to consider their options, such as voluntary surrender or an arrangement under the Personal Insolvency Act, before legal action can commence.  Regarding potential court proceedings for repossession, under the CCMA, a regulated entity may only commence legal proceedings for repossession of a primary residence where it has made every reasonable effort to agree an alternative repayment arrangement (ARA) with the borrower and other clear requirements are met.  This framework requires lenders to exhaust the options available from the suite of ARAs offered before taking action which may result in the borrower losing their home (whether by voluntary sale or repossession). 

During the legal process, borrowers have opportunities to re-engage with lenders to find a solution.  In some circumstances, however, loss of ownership may be unavoidable. 

As I mentioned at the outset, a key element of the Central Bank’s role is ensuring that the consumer protection regulatory framework is fit for purpose so that consumers best interests are protected.  To this end, I have asked the Central Bank to carry out a review of the CCMA to ensure it remains as effective as possible and for the review to be completed as soon as possible.

In June 2016, I requested the Governor of the Central Bank to provide me with a report detailing the mortgage restructuring activity within banks and non-banks, the range of solutions offered by non-banks, assessing the range of solutions that may affect borrowers’ capacity to remain in their primary residences, and whether these are addressing the requirements of over-indebted borrowers.  In that Report, the Central Bank stated ‘While repossession proceedings should only be initiated following the MARP, the ability to undertake secured lending is ultimately dependent on the institution’s right to realise the security if needed and to price accordingly.  This is a cornerstone of secured lending and, by extension, an effectively functioning mortgage market’. 

The Central Bank further stated that ‘Overall, there is strong evidence that banks and non-banks are looking to exhaust available options before moving into the legal process’.

Finally, across state agencies, there are numerous bodies and processes in place to assist those in mortgage arrears in the hope of avoiding repossession. The Abhaile service was established to offer help borrowers in arrears to find the best solutions and to 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. 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 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.

Central Bank - Residential Mortgage Arrears and Repossession Statistics

Family homes that have been repossessed by financial institutions 2009-2017

Year

2009

2010

2011

2012

2013

2014

2015

2016

2017

Repossessions

211

362

608

603

766

1,311

1,535

1,693

1,417

Tax Code

Questions (211)

Aengus Ó Snodaigh

Question:

211. Deputy Aengus Ó Snodaigh asked the Minister for Finance if VAT charges will be removed from the rental of disability aids during the interim period when the person is awaiting the delivery or installation of same; the reason that when disability aids are purchased, they are exempted from VAT but VAT is charged when hiring disability aids; and his views on whether this charge should be removed or reimbursed to persons who had to await delivery and installation of the disability aid. [16067/18]

View answer

Written answers

I am advised by The Revenue Commissioners that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, the supply of the rental of a disability aid is considered to be a service of hiring and is liable to VAT at the standard rate, currently 23%. The VAT Directive provides for particular categories of goods and services to which a Member State may apply a lower VAT rate or exempt from VAT. Under Irish VAT legislation, the supply of a range of medical equipment and appliances, which include invalid carriages (excluding mechanically propelled road vehicles), orthopaedic appliances, deaf aids, walking frames and crutches, fall within one of these categories and are subject to the zero rate of VAT.

In addition, the Value-Added Tax (Refund of Tax) (No. 15) Order, 1981, provides in certain circumstances for the refund of VAT on goods which are aids or appliances and includes goods specially constructed or adapted for use that are purchased for the exclusive use of a person with a disability of a type specified for the purposes of the Order. However, it is not possible under the requirements of EU law to extend the Order to include the rental of disability aids.

Tax Reliefs Abolition

Questions (212)

Noel Grealish

Question:

212. Deputy Noel Grealish asked the Minister for Finance if, when the decision was reached in 2011 to abolish tax relief on union subscriptions, there was agreement to have the decision reviewed in 2016; if this review took place; if not, when this review is likely to take place; and if he will make a statement on the matter. [16471/18]

View answer

Written answers

I wish to advise the Deputy that a review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on budget day 2016. The review may be found at the following link:

http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf.

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