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Tuesday, 12 Feb 2019

Written Answers Nos. 150-171

Tax Code

Questions (150, 154, 167, 168)

Darragh O'Brien

Question:

150. Deputy Darragh O'Brien asked the Minister for Finance the status of the betting tax review; when the review will be completed; and if he will make a statement on the matter. [6317/19]

View answer

Michael McGrath

Question:

154. Deputy Michael McGrath asked the Minister for Finance when the review on the betting tax will be completed; and if he will make a statement on the matter. [6399/19]

View answer

Thomas Byrne

Question:

167. Deputy Thomas Byrne asked the Minister for Finance the reason the review of an alternative proposal on betting tax has been delayed until July 2019 in view of the fact that it was originally to be reviewed in the first quarter of the year. [6544/19]

View answer

Thomas Byrne

Question:

168. Deputy Thomas Byrne asked the Minister for Finance if his attention has been drawn to the closure of betting shops since January 2019; and if his attention has been further drawn to the fact that betting shops are remaining open pending his review of an alternative proposal on betting tax and that the delay in this regard threatens further significant closures. [6546/19]

View answer

Written answers

I propose to take Questions Nos. 150, 154, 167 and 168 together.

The increase in the betting duty rate from 1 per cent to 2 per cent, and the betting intermediary duty rate from 15% to 25%, came into effect on 1 January 2019. It is too early to draw any conclusions on the impact of these increases.

I have sympathy for small bookmakers who may have ongoing difficulties competing with large retail and online bookmakers. However, I could not apply the increase in betting duty to some bookmakers and not others. Ultimately many taxes on goods or services are passed through to the end consumers and bookmakers will need to make commercial decisions on such matters.

The Deputies will appreciate that decisions in relation to betting duty need to reflect broader public interest considerations. Receipts from betting duty represented less than 1 per cent of all excise receipts in 2017 and this is also likely to be the case in for 2018. In addition, unlike other excisable commodities, there is no VAT applied on betting transactions. I have outlined why I consider the betting sector needs to make a fair contribution to the Exchequer.

In any discussion on betting duty, we must acknowledge the raised public consciousness of the problem of gambling in society. While problem gambling can result in the problem gambler, and their family, bearing the severest of economic and of course personal costs, the social costs of problem gambling can extend to their employers and to public institutions in the health, welfare and justice systems, such costs ultimately borne by taxpayers. Recent research published by the UK Gambling Commission and others provide an indicative list of these social costs, including loss of employment, experience of bankruptcy and/or debt, loss of housing/homelessness, crime associated with gambling, relationship breakdown/problems and health-related problems.

I have outlined my view that the social costs of problem gambling needs to be better reflected within the betting duty regime.

During the course of the Finance Bill process I agreed to review an alternative proposal put forward by the betting sector following the announcement of increases in betting duty in Budget 2019. My officials are currently considering this proposal, including the compatibility of a core element with EU rules, and will set out analysis and options in relation to betting duty at the Tax Strategy Group (TSG) meeting in July. The TSG Papers will be published on the Department's website shortly afterwards.

European Investment Bank Loans

Questions (151)

Pearse Doherty

Question:

151. Deputy Pearse Doherty asked the Minister for Finance the details of applications for European Investment Bank, EIB, funds made since 1 January 2015; the details of each project; the amount applied for; and if he will make a statement on the matter. [6319/19]

View answer

Written answers

The Department of Finance has no role in the day to day activities of the European Investment Bank (EIB). Applications are a matter between the Bank and individual clients.

However, I have been advised by the EIB that, in accordance with the EIB Transparency Policy, the Bank publishes details of all projects financed by or to be financed by the Bank. Details of all Irish projects financed (or to be financed) by the EIB since 1973 are therefore available at the following links:

Projects to be financed – http://www.eib.org/en/projects/pipelines/index.htm

Financed projects – http://www.eib.org/en/projects/loan/list/index

These project summaries generally include the name of the project, the project promoter or financial intermediary (for intermediated loans), the location of the project, the sector it represents, a project description, its objective(s), its environmental and, if relevant, social aspects, procurement data, proposed EIB finance and the total project cost.

However, it should be noted that a limited number of projects are not published on the website before Board approval and, in some cases, not before loan signature based on the exceptions to disclosure as provided for in the Bank’s Transparency Policy (including, for example, protection of commercial interests).

Revenue Documents Issuance

Questions (152)

Pearse Doherty

Question:

152. Deputy Pearse Doherty asked the Minister for Finance when a person (details supplied) in County Derry can expect a notice of claim to be processed; and if he will make a statement on the matter. [6323/19]

View answer

Written answers

I am advised by Revenue that it received a ‘notice of claim’ from the person in question on 23 October 2018.

Revenue subsequently reverted to the person on 28 January 2019 with a compromise settlement offer to which a reply has not yet been received. If the proposed terms are accepted by the person and payment made, Revenue has assured me that the vehicle will be released.

Central Bank of Ireland Staff

Questions (153)

Pearse Doherty

Question:

153. Deputy Pearse Doherty asked the Minister for Finance the way in which the selection process for the role of Governor of the Central Bank is carried out; the salary for the role; and if he will make a statement on the matter. [6329/19]

View answer

Written answers

Governor Lane was appointed following a process organised by my Department which involved a public call for expressions of interest in tandem with the hiring of a specialist international executive search firm (Merc Partners).

Any future selection process for the role of Governor of the Central Bank will also be rigorous and comprehensive.

The remuneration, allowances and conditions of the Governor of the Central Bank are determined by the Central Bank Commission, as per Section 19(1) of the Central Bank Act 1942 (as amended).

Question No. 154 answered with Question No. 150.

Stamp Duty

Questions (155)

Jackie Cahill

Question:

155. Deputy Jackie Cahill asked the Minister for Finance if the direct relationship attracts stamp duty at a lower percentage than if the land was being transferred to a stranger in circumstances in which a father is transferring land to his son; and if he will make a statement on the matter. [6404/19]

View answer

Written answers

I am advised by Revenue that a reduced rate of stamp duty applies to transfers of farmland between a father and son (and certain other blood relatives) subject to certain conditions. A rate of 1% applies instead of the standard 6% rate. This reduced rate is referred to as consanguinity relief.

To be eligible for the relief, the person to whom the land is transferred must either farm the land or lease it to someone who farms the land for a period of at least 6 years. The person farming the land must do so on a commercial basis and with a view to the realisation of profits. The person farming the land must also spend at least 50% of his or her normal working time farming or be the holder of one of the agricultural qualifications set out in Schedule 2, 2A or 2B to the Stamp Duties Consolidation Act 1999.

Insurance Costs

Questions (156)

Michael McGrath

Question:

156. Deputy Michael McGrath asked the Minister for Finance the status of recommendation No. 6 of the report on the cost of employer and public liability insurance; and if he will make a statement on the matter. [6419/19]

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Written answers

Recommendation six of the Cost of Insurance Working Group’s Report on the cost of employer and public liability insurance seeks to amend section 8 of the Civil Liability and Courts Act 2004 to ensure that defendants are notified of a claim lodged against them at an earlier date than currently required i.e. a reduction from two months to one month. I am pleased to inform the Deputy that the recommendation was implemented at the end of 2018 through Section 13(2) of the Central Bank (National Claims Information Database) Act 2018, which provides for the amendments to Section 8 of the 2004 Act. This was signed by the President on 28 December 2018 and the Act was commenced in full on 28 January 2019. This will be reflected in the Cost of Insurance Working Group’s next update report, due to be published in the coming weeks.

By way of further information to the Deputy, the amendment to Section 8 of the Civil Liability and Courts Act 2004 deals with the letter of claim and the potential consequences of a failure to serve a notice in writing on the alleged wrongdoer within a prescribed period from the date of the cause of action, which was previously two months. The Cost of Insurance Working Group took the view that Section 8 should be amended to enhance the effectiveness of this statutory requirement.

The key aim of the amendment is to reduce the notification period for the serving of a letter of claim from two months to one month. Its rationale is to align the time period with data protection legislation which provides that data shall not be kept for longer than is necessary for the purposes for which it is obtained – generally no more than one month. However an exception to this rule is where information or CCTV footage is held in the context of an investigation such as a personal injuries claim. Consequently by requiring a plaintiff to notify a defendant within one month of an alleged incident under Section 8, the defendant is being given the opportunity to identify within the data protection time limits any relevant CCTV footage they may have of the incident, and keep it beyond the one month period for investigation purposes where they believe the claim is questionable. This earlier notification period will also help a defendant prepare their defence in a range of other ways such as being able to put together more accurate employee witness statements where this is relevant. In addition, the Working Group believed that the previous wording of Section 8 needed to be strengthened in order to ensure it was used more effectively by the Courts. In this regard, the amendment means that instead of a court having the option to draw inferences from the failure to serve a letter of claim on the alleged wrongdoer within the prescribed period of time though the use of the word “may”, that it should be required to do so as a matter of course through the use of the word “shall”.

The amendment to Section 8 of the Civil Liability and Courts Act 2004 is seen as very important for small and medium businesses in particular, as when implemented they should make it easier for businesses and insurers to challenge cases where fraud or exaggeration is suspected. I might add that the amendment of Section 14 of the same Act to allow for the court to draw inferences from non-compliance with the requirement to lodge a verifying affidavit within 21 days after the lodgement of the service of the pleading concerned, as recommended in Recommendation 14 of the Report on the cost of employer and public liability, was also provided for within the Central Bank (National Claims Information Database) Act 2018. This means that both Recommendations 6 and 14 have both been fully implemented and I believe these amendments form important steps in the reform of the overall personal injuries framework.

Mortgage Interest Rates

Questions (157)

Pearse Doherty

Question:

157. Deputy Pearse Doherty asked the Minister for Finance the rights a consumer has to seek a lower interest rate on a mortgage as the consumer's loan-to-value ratio decreases; the obligations on lenders to inform borrowers of these options; and if he will make a statement on the matter. [6446/19]

View answer

Written answers

The Central Bank of Ireland has made further changes to the Consumer Protection Code 2012 (the Code), effective from 1 January 2019, to help consumers make savings on their mortgage repayments, to provide additional protections to consumers who are eligible to switch, and to facilitate mortgage switching through enhancing the transparency of the mortgage framework.

For consumers on variable rate mortgages (other than on a tracker rate), provision 6.5(g) of the Code now requires lenders at least annually to, inter alia, notify consumers as to whether they can move to a cheaper interest rate as a result of a move in their Loan-to-Value interest rate band (subject to the provision of an up-to-date valuation and any other requirements that may apply) and, if the consumer is permitted to move between Loan-to-Value interest rate bands, to invite the consumer to contact the lender to discuss the matter further.

If the consumer is not permitted to move between Loan-to-Value bands, the consumer is nevertheless to be notified that he/she may be able to avail of lower Loan-to-Value interest rate bands from another lender based on an up-to-date valuation.

More generally the Code also requires lenders at least annually to provide variable rate mortgage holders (excluding tracker mortgage borrowers) a summary of other mortgage products offered by the lender that could provide savings for the consumer at that point in time, a statement that consumers should keep their mortgage arrangements under review as there may be other options that could provide savings for the borrower and to provide a link to the relevant section of the Competition and Consumer Protection Commission website (https://www.ccpc.ie/consumers/financial-comparisons/mortgage-comparisons/) relating to switching lenders or changing mortgage type.

Mortgage Interest Rates

Questions (158)

Pearse Doherty

Question:

158. Deputy Pearse Doherty asked the Minister for Finance the policy of each State-backed bank on changing the interest rate applied to a mortgage loan as the loan-to-value ratio decreases; when this policy was adopted; if borrowers are entitled to a backdating of this lower rate to the date the lender introduced such a policy; if a valuation of the property is required; and if he will make a statement on the matter. [6447/19]

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Written answers

As the Deputy will be aware, pricing decisions and commercial strategies are the responsibility of the board and management of the banks which must be run on an independent and commercial basis. The banks’ independence is protected by Relationship Frameworks which are legally binding documents which I as Minister, cannot change unilaterally. These frameworks which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.

That being said officials in my department received the following response from AIB:

"AIB Mortgage customer contracts, since 16/02/09, when LTV mortgages were introduced, state customers are not permitted to move down LTV bands when the LTV on their property reduces.

The approach in EBS and Haven is the same. Where property prices reduce and LTVs increase, we do not move customers to a higher LTV band and these circumstances occur usually at a time customers could least afford a rate increase, such as the period 2007 through to 2012.

"In 2018, as part of an enhancement to our Mortgage Proposition, AIB, including EBS and Haven, took the decision to change its policy and waive its right not to permit downward LTV band movement during the mortgage life cycle. LTV band movement is, however, subject to a customer providing a supporting up-to-date valuation from a panel valuer and the customer requesting the change. To be clear, the Bank will not move customers up to a higher LTV band in the event of a fall in house prices."

"Prior to this policy change LTV Band movement was permitted in limited circumstances for customers with LTV Mortgages. However, it is important to note that AIB mortgage customers who originated on an SVR Mortgage have always been permitted to move to a LTV Band, subject to the provision of a supporting valuation from an approved panel valuer, and they are advised of this capability annually in their mortgage statement."

"The required changes to facilitate the revised policy were put in place in 2018 and it took effect in AIB on December 17th 2018 and in EBS/Haven on January 1st 2019. All AIB variable rate customers were advised of the change in their annual mortgage statement sent in January. EBS variable rate customers will be advised in their annual statements in February with Haven customers advised in early March. The websites have been updated from the time the change took effect to alert customers to the change in policy."

"LTV band movement is a customer driven action and supporting information has been provided to aid customers who are considering whether or not they may be eligible for a lower LTV rate.

The LTV Band change for customers will take effect from the time the up-to-date valuation and request is received."

Officials in my department received the following response from PTSB:

"In 2015 Permanent TSB changed the default variable interest rate model for mortgages from the traditional Standard Variable Rate (SVR) model to a Managed Variable Rate (MVR) model. Under the MVR model, the rate of interest which applies to a variable rate mortgage is linked to the LTV of the mortgage at the time of application. Mortgages with a lower LTV ratio enjoy lower rates of interest than mortgages with a higher LTV."

"The MVR model is not dynamic in respect of LTVs. The rate of interest is variable and the LTV is calculated at the time of application only."

"Based on current rates and depending on the LTV of the relevant mortgage, the MVR offers a saving of between 0.20% and 0.80% on the headline rate of interest charged to customers compared to the Standard Variable Rate."

"Existing customers of Permanent TSB are eligible to apply to move to an MVR mortgage. This allows them to take advantage of any decrease in the LTV of their mortgage since it commenced. This extends to customers currently on an SVR mortgage, customers who had taken out an MVR prior to 2015 and customers on Fixed Rates subject to the normal terms and conditions that apply."

"Since 2015, Permanent TSB has written to existing eligible customers on a number of occasions to make them aware of the MVR model, to advise them of their options to apply to move to MVR and to explain the steps to be taken to do so. While a valuation of the property is required, Permanent TSB offers customers a voucher to pay for such a valuation. To date approximately 30% of eligible customers have moved to the MVR model."

Motor Insurance Costs

Questions (159)

Charlie McConalogue

Question:

159. Deputy Charlie McConalogue asked the Minister for Finance the status of efforts to reduce the cost of car insurance; the number of recommendations and associated actions from the report on the cost of motor insurance which have been completed to date; and if he will make a statement on the matter. [6503/19]

View answer

Written answers

The seventh quarterly update on the progress of the Cost of Insurance Working Group (CIWG) was published last November and shows that of the 59 separate applicable deadlines within the Action Plan of the Report on the Cost of Motor Insurance set to the end of Q3 2018, 45 relate to actions which have now been completed.

It is envisaged that the next quarterly Progress Update will be completed by the end of this month and concentrate in particular on outlining the definitive position in relation to all of the 33 recommendations from the Motor Report as the last of the deadlines within its Action Plan passed at the end of 2018. When published, the next quarterly Progress Update will thus update the information supplied in response to a recent Parliamentary Question submitted by the Deputy (4215/19).

At this juncture, I would just like to highlight some relevant recent legislative developments since the last quarterly Progress Update was released.

The Personal Injuries Assessment Board (Amendment) (No. 2) Bill 2018 has completed its passage through the Dáil and is before Second Stage in the Seanad today (12 February). Once enacted, this will strengthen PIAB by addressing operational issues to ensure greater compliance with the PIAB process and encourage more claims to be settled through the PIAB model. In particular, the Bill deals with the issues of non-attendance at medicals and failure to provide details of special damages or loss of earnings.

Meanwhile, the Central Bank of Ireland published the Non-Life Insurance (Provision of Information) (Renewal of Policy of Insurance) (Amendment) Regulations 2018 in December, which will improve the level of premium information available to consumers as well as extending the renewal notification period.

And, perhaps most notably, the Central Bank (National Claims Information Database) Act was commenced on 28 January. The aim of the database is to improve the level of transparency and the availability of information in the insurance sector by facilitating a more in-depth analysis of annual trends in motor insurance claims.

More details in respect of these pieces of legislation will be included in the eighth Progress Update, which will be available on the Department’s website.

Finally, I am hopeful that the continued implementation of all the recommendations from the Report on the Cost of Motor Insurance – in addition to those in the CIWG’s Report on the Cost of Employer and Public Liability Insurance and the two reports of the Personal Injuries Commission – can help to maintain and expand the positive trend which has seen private motor insurance premiums decrease by 22.16% over the last two-and-a-half years.

Flood Risk Insurance Cover Provision

Questions (160)

Michael McGrath

Question:

160. Deputy Michael McGrath asked the Minister for Finance the percentage of property owners who have secured flood insurance since OPW flood schemes were put in place as a result of the flood relief works; the number or percentage of property owners who have secured flood insurance without excess; and if he will make a statement on the matter. [6525/19]

View answer

Written 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, 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 willing to accept. 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,

- ongoing 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 above approach is complemented by a Memorandum of Understanding between the OPW and Insurance 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.

In order to improve the quality of the data and to get a greater idea of the impact of any new flood defence scheme, the OPW and the Department of Finance are currently working with the insurance industry to measure baseline flood cover ahead of schemes being completed. This aims to provide a ‘before’ and ‘after’ of flood insurance cover for each community to be protected in the future. The OPW has advised me that data relating to four schemes has been provided to Insurance Ireland, to pilot the comparative analysis of the levels of flood cover before and after schemes have been completed.

Finally, since agreement of the Memorandum of Understanding in 2014, the OPW has provided data on 18 completed flood defence schemes, to the insurance industry. Insurance Ireland has informed me that the most recent Insurance Ireland survey indicates that of the completed defence schemes, 90% of policies in areas benefitting from permanent flood defences include flood cover, while 75% of policies in areas benefitting from demountable defences include flood cover. Taken together, 82% of policies in the areas benefitting from these flood defences included flood cover in 2017.

Flood Risk Insurance Cover Provision

Questions (161, 162)

Michael McGrath

Question:

161. Deputy Michael McGrath asked the Minister for Finance the number of instances of flood victims being denied flood insurance post a claim; and if he will make a statement on the matter. [6526/19]

View answer

Michael McGrath

Question:

162. Deputy Michael McGrath asked the Minister for Finance if the record of claims regarding flood and burst pipe insurance of an organisation (details supplied) from 2013 to 2018, inclusive, and to date in 2019, by the number of burst pipes and fluvial and coastal flooding figures, respectively, will be provided; and if he will make a statement on the matter. [6527/19]

View answer

Written answers

I propose to take Questions Nos. 161 and 162 together.

Insurance Ireland has advised me that they do not collate, publish or communicate any data relating to claims information at a granular level from their members. They have pointed out that property insurance policies cover a range of perils such as fire, storm, theft, water damage, and it is not possible to isolate the number of burst pipes, fluvial or coastal flooding claim figures. They have however collated some general data on severe weather events (storm and flood) in an aggregated form. According to their latest data, the aggregate cost to insurers of adverse weather events for the period 2013-May 2018 is approximately €311 million.

Additionally, Insurance Ireland has advised that they do not collect data relating to claims information or underwriting decisions of members, including instances of flood victims being denied flood insurance post a claim.

Government policy in relation to flooding as the Deputy is aware 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,

- ongoing 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 above approach is complemented by a Memorandum of Understanding between the OPW and Insurance 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. The Insurance Ireland/OPW working group, which the Department of Finance attends, meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.

It is also worth noting, that a consumer can make a complaint to the Financial Services and Pensions Ombudsman (FSPO) 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.

Tax Yield

Questions (163)

Michael McGrath

Question:

163. Deputy Michael McGrath asked the Minister for Finance the amount of revenue collected by year from stamp duty on non-life insurance policies from 2008 to 2018 and to date in 2019; and if he will make a statement on the matter. [6528/19]

View answer

Written answers

I am advised by Revenue that the Stamp Duty received from the levy on non-life insurance policies from 2008 to present is set out in the following table.

Year

Yield €m

2008

80.10

2009

86.39

2010

109.47

2011

106.40

2012

104.16

2013

98.73

2014

103.35

2015

107.95

2016

135.67

2017

164.49

2018*

159.56

2019 (January)*

18.54

*Figures for 2018 and 2019 are provisional.

EU Directives

Questions (164)

Michael McGrath

Question:

164. Deputy Michael McGrath asked the Minister for Finance his views on the effectiveness of regulation of insurance across the EU and Solvency II directive 2009 in view of the number of insurance firms that have collapsed; and if he will make a statement on the matter. [6529/19]

View answer

Written answers

The Solvency II Directive (2009/138/EC), which entered into force 1 January 2016, sets out new, more comprehensive EU-wide requirements on capital adequacy and risk management for insurers. It was transposed into Irish law via the European Union (Insurance and Reinsurance) Regulations 2015 (S.I. No. 485 of 2015).

Solvency II represents a significant change to the regulatory framework for insurance and introduced for the first time a harmonised regime for insurance regulation across the EU. It has brought a number of significant changes for the insurance industry, including better alignment of capital to risks, better risk management and governance and increased transparency. Since its entry into force on 1 January 2016, Member States, EIOPA and national supervisory authorities are working towards greater consistency in the application of these new standards across the EU. This should mean that, over time, insurers are better regulated thus reducing the possibility of consumer loss or market disruption.

In order to ensure it remains fit for purpose, Solvency II will be subject to a review in 2020 which will provide an opportunity to adapt the regime in light of changes in market conditions and insurer business models.

The provision of cross-border insurance is an essential part of the Single Market and Ireland in particular is a beneficiary of this regime through its significant cross-border life industry. However, it is acknowledged that there are obvious difficulties which arise when an insurer fails, as we have seen in this country over the last number of years. That said however, it is important to point out that Solvency II is not a 'no-failure' regime as it would not be possible to build a viable system that provides a cast iron guarantee that no insurer would ever fail. Any such regime would require very large capital requirements which would be likely to make insurance prohibitively expensive.

Consequently, I believe it is important that EU supervisors properly and consistently supervise the insurers that they authorise, and that there is greater communication between supervisors across the EU about their respective companies conducting cross-border business. The Deputy should also be aware that as part of the ongoing review of the European supervisory architecture, there is a proposal to further improve cross-border co-operation and communication through the strengthening of Cross-Border Collaboration Platforms. These already operate on an ad-hoc basis, however this proposal would ensure a more formal structure is put in place where an insurer is doing a lot of cross-border business. This would therefore give the supervisors of countries into which insurance is written a greater insight into how the business is being conducted.

Finally, whilst currently in the event of failure of an insurer there is no harmonised insurance guarantee regime nor a recovery and resolution or guarantee schemes across the EU, there have been a number of reports and initiatives in this area in recent years including a recent EIOPA opinion and project work. In addition, there is a proposed amendment to the Motor Insurance Directive which would oblige member states to set up Insurance Guarantee Schemes to cover the cost of insolvent motor insurers including any cross-border business they conduct. If progress can be made on these proposals, it is likely over time to provide a greater level of protection to policyholders and claimants in the event of a failure of an insurance company.

Central Bank of Ireland Enforcement Actions

Questions (165)

Michael McGrath

Question:

165. Deputy Michael McGrath asked the Minister for Finance the position regarding the fine imposed by the Central Bank on a company (details supplied); the reason for the fine; and if he will make a statement on the matter. [6530/19]

View answer

Written answers

As Minister for Finance, it would not be appropriate for me to comment on specific enforcement measures taken by the Central Bank of Ireland, the position of them or the reason for them. The Deputy will appreciate that I am responsible for the development of the legal framework governing financial regulation, whereas the day to day supervision of insurance undertakings is a matter for the Central Bank of Ireland. This enforcement measure is a matter for the Central Bank of Ireland.

However, to be helpful, I believe the information that the Deputy may be looking for is contained in a press release issued by the Central Bank of Ireland on 20 December 2018 regarding the specific enforcement measure taken by the Central Bank, and this is available at:

https://centralbank.ie/news/article/enforcement-action-rsa-insurance-ireland-dac-fined-3.5m

Revenue Commissioners Staff

Questions (166)

James Browne

Question:

166. Deputy James Browne asked the Minister for Finance the number of Revenue Commissioners officials due to be posted to Rosslare Europort following a recent recruitment campaign; and if he will make a statement on the matter. [6533/19]

View answer

Written answers

In September 2018, the Government granted approval for phased recruitment of an additional 600 Revenue staff to meet the challenges posed by Brexit. Budget 2019 provided Revenue with the funding needed for 270 of the additional 600 staff to be recruited during 2019 to manage an orderly UK withdrawal.

Following the Government decision to give greater priority to the preparations for a no-deal Brexit in December 2018, it was agreed to accelerate Revenue’s recruitment plans.

Revenue are on track to have appointed over 400 additional staff to customs and related roles for Brexit during the period September 2018 to 29 March 2019.

30 of these additional 400 staff are being assigned to Rosslare Europort. These additional staff will bring the total Revenue staff in Rosslare EuroPort to approximately 50 by 29 March 2019.

In the event of a no-deal Brexit, a further 200 staff will be recruited between April and December 2019. Resources will be deployed based on the evolving business needs and to tackle any risks as they emerge.

Question Nos. 167 and 168 answered with Question No. 150.

Economic Data

Questions (169, 170)

Pearse Doherty

Question:

169. Deputy Pearse Doherty asked the Minister for Finance the level and projected levels of general expenditure from 2010 to 2024, inclusive, or the latest available date by current and capital (details supplied) in tabular form. [6560/19]

View answer

Pearse Doherty

Question:

170. Deputy Pearse Doherty asked the Minister for Finance the level and projected levels of general revenue from 2010 to 2024, inclusive, or the latest available date by tax and non-tax revenue (details supplied) in tabular form. [6561/19]

View answer

Written answers

I propose to take Questions Nos. 169 and 170 together.

Firstly, it is worth noting that projections for the General Government (GG) revenue and expenditure for 2018 to 2023 can be found in table 11 of the Economic and Fiscal Outlook, published as part of Budget 2019. The figures are reproduced below for the Deputy’s convenience. As the Deputy will appreciate, projections beyond 2023 have not been complied by my Department. All nominal GG revenue and expenditure figures provided as follows are displayed in millions.

Table 1 as follows sets out the Central Statistics Office's (CSO) outturns for the period 2010 to 2017 in respect of GG revenue and GG revenue expressed as a percentage of GNI*, GDP and GG expenditure. The CSO will publish its first official estimate for 2018 in April.

In addition, the table also includes EU-15 and EU-28 comparisons of GG revenue as percentage of GDP. The latter data, up to and including 2017, is available on Eurostat's database.

Table 1: general government revenue outturns

-

2010

2011

2012

2013

2014

2015

2016

2017

GG revenue, € million

55,376

57,746

59,498

61,502

66,012

70,901

73,655

76,540

GG revenue, per cent of GNI*

42.9

45.6

47.1

44.9

44.4

43.9

41.9

42.2

GG revenue, per cent of GG expenditure

50.8

72.5

80.8

84.8

90.4

93.4

98.0

99.1

GG revenue, per cent of GDP

33.0

33.7

34.0

34.2

33.8

27.0

27.0

26.0

EU-15 GG revenue, per cent of GDP

43.9

44.4

45.1

45.8

45.5

45.0

45.1

45.3

EU-28 GG revenue, per cent of GDP

43.5

44.0

44.6

45.3

45.0

44.6

44.6

44.8

Source: CSO, Eurostat

Table 2 sets out the projections in respect of GG revenue, and GG revenue expressed as a percentage of GNI*, GDP and GG expenditure for the period 2018 to 2023, as per Budget 2019, Economic and Fiscal Outlook.

Table 2: general government revenue projections

-

2018

2019

2020

2021

2022

2023

GG revenue, € million

80,830

85,235

88,900

92,600

96,645

100,675

GG revenue, per cent of GNI*

41.3

41.1

40.7

40.7

40.7

40.6

GG revenue, per cent of GDP

25.1

25.0

24.7

24.6

24.6

24.6

GG revenue, per cent of GG expenditure

99.6

99.9

101.2

101.8

104.5

106.1

Source: Department of Finance

Table 3 sets out the CSO's finalised outturn for the period 2010 to 2017 in respect of GG expenditure and GG expenditure expressed as a percentage of GNI*, GDP and GG revenue. Likewise, the table also includes EU-15 and EU-28 comparisons of GG expenditure as percentage of GDP. This data up to and including 2017 is available on Eurostat's database.

Table 3: general government expenditure outturns

-

2010

2011

2012

2013

2014

2015

2016

2017

GG expenditure, € million

109,088

79,622

73,612

72,529

73,057

75,915

75,121

77,269

GG expenditure, per cent of GNI*

84.6

62.9

58.2

53.0

49.2

47.0

42.7

42.6

GG expenditure, per cent of GG revenue

197.0

137.9

123.7

117.9

110.7

107.1

102.0

101.0

GG expenditure, per cent of GDP

65.0

46.5

42.0

40.3

37.4

28.9

27.5

26.3

EU-15 GG expenditure, per cent of GDP

50.3

49.0

49.4

49.2

48.4

47.4

46.8

46.3

EU-28 GG expenditure, per cent of GDP

49.9

48.5

48.9

48.6

47.9

46.9

46.3

45.8

Source: CSO, Eurostat

Table 4, as follows, sets out the projections in respect of GG expenditure, and GG expenditure expressed as a percentage of GNI*, GDP and GG Revenue for the period 2018 to 2023, as per Budget 2019 Economic and Fiscal Outlook.

Table 4: general government expenditure projections

-

2018

2019

2020

2021

2022

2023

GG expenditure, € million

81,845

85,310

87,840

90,985

92,480

94,865

GG expenditure, per cent of GNI*

41.4

41.1

40.2

40.0

39.0

38.3

GG expenditure, per cent of GDP

25.2

25.0

24.4

24.2

23.6

23.2

GG expenditure, per cent of GG revenue

100.4

100.1

98.8

98.3

95.7

94.2

Source: Department of Finance

Ministerial Advisers Data

Questions (171)

Mattie McGrath

Question:

171. Deputy Mattie McGrath asked the Minister for Finance the number of advisers and special advisers employed by his Department in 2017 and 2018 and to date in 2019; the areas of expertise covered by such advisers; the annual salaries associated with same; and if he will make a statement on the matter. [6571/19]

View answer

Written answers

I wish to inform the Deputy that Ministerial appointments in the Department of Finance are made in line with “Instructions to Personnel Officers - Ministerial Appointments for the 32nd Dáil” which include “Guidelines on staffing of Ministerial offices” issued by the Department of Public Expenditure and Reform. The salary scale for Special Advisers to a Minister are as follows:

Principal Officer (Standard) PPC Pay Scale (as of 1st October 2018)

Payscales

€85,823

€89,356

€92,862

€96,395

€99,375

€102,465

€105,552

The information on Special Advisers in my Department, requested by the Deputy are shown in the following table.

Minister or Minister of State

Name of Special Adviser

Commencement date of Special Adviser

Cessation date of Special Adviser

Paschal Donohoe, Minister for Finance and Public Expenditure & Reform

Deborah Sweeney

Appointed 06/05/2016

N/A

Paschal Donohoe, Minister for Finance and Public Expenditure & Reform

Stephen Lynam

Appointed 06/05/2016

16/03/2018

Paschal Donohoe, Minister for Finance and Public Expenditure & Reform

Ed Brophy

Appointed 12/02/2018

N/A

Michael D'Arcy, Minister of State (with special responsibility for Financial Services and Insurance)

Barry Harrington, Civil Servant

Appointed 12/02/2018

N/A

Deputy Michael Noonan, former Minister for Finance

Mary Kenny

Re-appointed 10/03/2016

14/06/2017

Deputy Michael Noonan, former Minister for Finance

Sean Kinsella, Civil Servant

Appointed 13/06/2016

14/06/2017

From the list of Advisers above the Advisers currently being paid by the Department of Finance are:

Name

Minister/Minister of State

Salary

Mr Ed Brophy

Minister for Finance and Public Expenditure & Reform

€99,375 = 5th point Principal Officer (Standard) PPC

Ms Deborah Sweeney

Minister for Finance and Public Expenditure & Reform

€99,375 = 5th point Principal Officer (Standard) PPC.

The cost of this post is shared equally with the Department of Public Expenditure & Reform.

Mr Barry Harrington

Minister of State D'Arcy

€83,498 = 5th point Assistant Principal (Higher) PPC

Special Advisers are appointed under Section 11 of the Public Service Management Act 1997. A Special Adviser to a Minister or to a Minister of State, as in the case may be, shall

(a) assist the Minister or Minister of State, as the case may be, by –

(i) providing advice,

(ii) Monitoring, facilitating and securing the achievement of the Government objectives that relate to the Department, as requested by the Minister or the Minister of State, as the case may be, and

(iii) Performing such other functions as may be directed by the Minister or the Minister of State, as the case may be that are not otherwise provided for in this Act and do not involve the exercise of any specific powers conferred on the Minister or the Minister of State as the case may be or any other office holder by or under any other Act.

The appointments of Advisers are kept under review given the breath of my responsibilities across two Departments.

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