Written Answers Nos. 240-260
240. Deputy Michael Healy-Rae asked the Minister for Transport if he will address a matter (details supplied) regarding the provision of public transport in County Kerry; and if he will make a statement on the matter. [36946/20]
View answerAs the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport.
The issue raised is a matter for the National Transport Authority (NTA), in conjunction with Bus Éireann, and I have forwarded the Deputy's question to the NTA for direct reply.
Please advise my private office if you do not receive a response within ten working days.
241. Deputy Jennifer Carroll MacNeill asked the Minister for Transport if companies that report to him such as the Irish Aviation Authority, have a compulsory retirement age of 65 years of age; if not, if they are included under the Public Service Superannuation (Age of Retirement) Act 2018; and if he will make a statement on the matter. [36963/20]
View answerThe issue raised is a matter for the agencies under the aegis of my Department. I have referred the Deputy's question to the agencies for direct reply. Please advise my private office if you do not receive a response within ten working days.
242. Deputy Jennifer Carroll MacNeill asked the Minister for Transport if the Irish Aviation Authority is considered a semi-State body as it reports to his Department; and if he will make a statement on the matter. [36964/20]
View answerThe Irish Aviation Authority (IAA) is a commercial semi-state body. It was formed under Section 11 of the Irish Aviation Authority Act, 1993 and is under my aegis.
In addition to the requirements of the Companies Act, 2014 the IAA is required under sections 30 and 31 of the Act of 93 to submit accounts and a report annually to me as Minister. Those accounts and the report are laid before the Houses of the Oireacthas. Section 31 provides that the IAA shall furnish any information that I require in respect of company or any subsidiaries.
Furthermore, the IAA is subject to the reporting requirements of the Code of Practice for the Governance of State Bodies (2016).
243. Deputy Thomas Pringle asked the Minister for Transport the status of metro north; and if he will make a statement on the matter. [36966/20]
View answerAs Minister for Transport, I have responsibility for policy and overall funding in relation to public transport and in terms of policy, I can assure the Deputy that the Programme for Government - Our Shared Future prioritises plans for the delivery of MetroLink and I look forward to seeing the project progress during the lifetime of the Government.
The National Transport Authority (NTA) has statutory responsibility for the planning and development of public transport infrastructure, including the delivery of MetroLink.
Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.
244. Deputy Éamon Ó Cuív asked the Minister for Transport the protocols he has in place with the RSA to ensure a speedy reply to questions referred on by him for direct reply; the reason this Deputy has not yet received a reply to Parliamentary Question No. 353 of 3 November 2020; and if he will make a statement on the matter. [37009/20]
View answerAs the Deputy will be aware, under Standing Order 51(1), a Minister in their reply to a parliamentary question may refer the matter to a body under the aegis of their department for direct response. In these instances, a reply should issue from the Oireachtas liaison to these bodies within 10 working days and Deputies are asked to notify my private office if they have not received a response within this timeframe.
I also confirm that each agency and body under my Department, to which a matter has been referred, receives an electronic notification that a question has been referred to them for response at the same time as my office notifies the Oireachtas that a question is being referred for direct response. If alerted to late responses via the Ceann Comhairle's office or by Deputies directly, my private office will also engage with both the Deputy and the agency or body concerned to secure a response in a timely manner.
In this instance, I understand that my original response to the Deputy referring the matter to the Road Safety Authority was made on 3 November, and so the full 10 working day period will not elapse until, today 17 November. As the Deputy will be aware, the RSA is experiencing significant administrative challenges in all areas of its operations as a result of the impact of Covid-19, but that in general, it has maintained a high level of compliance with the 10 working-day timeframe for response to parliamentary questions.
I trust that the Deputy will notify my private office if he has still not received a response on the matter by close of business today.
245. Deputy Danny Healy-Rae asked the Minister for Transport if an additional bus service will be provided to travel early in the morning and return late at night from Kenmare to Killarney, County Kerry; and if he will make a statement on the matter. [37024/20]
View answerAs the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. However, I am not involved in the day-to-day operations of public transport.
The issue raised is a matter for the National Transport Authority (NTA), in conjunction with Bus Éireann, and I have forwarded the Deputy's question to the NTA for direct reply.
Please advise my private office if you do not receive a response within ten working days.
246. Deputy Seán Canney asked the Minister for Transport his views on the fact that TII is reported to have turned off public lights on national roads in order to meet its 20% reduction in usage; and if he will make a statement on the matter. [37034/20]
View answerAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
More generally, I welcome any initiatives to reduce energy use and wastage which can be achieved without compromising safety, which I understand to be the case in relation to recent measures by TII, in conjunction with the local authorities.
247. Deputy Seán Canney asked the Minister for Transport if he will request TII to examine the public lighting and barriers in place on the junction of the M17-M18 at Rathmorrissy, Athenry, County Galway; and if he will make a statement on the matter. [37049/20]
View answerAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
248. Deputy Mairéad Farrell asked the Minister for Transport if the review and renew of the national development plan relating to the way in which consideration will be given to a high speed rail network for Belfast, Dublin, Cork and Limerick in the national development plan will be extended to other counties such as Galway. [36713/20]
View answerThe Deputy is aware that the Programme for Government – Our Shared Future commits toward a fundamental change in the nature of transport in Ireland and I believe that rail has a strategic role to play in achieving that change.
My Department, in consultation with the Department for Infrastructure, Northern Ireland, is currently developing terms of reference for a proposed study of rail speeds and the opportunities for high-/higher-speed rail on the wider network, where appropriate. The finalised terms of reference will take appropriate consideration of the need for balanced regional development and the strategic potential of rail.
This will be a significant study which will of course be considered in the review of the National Development Plan and I look forward to it commencing.
249. Deputy Paul McAuliffe asked the Minister for Transport if his attention has been drawn to tolls for taxis on a motorway (details supplied); and if he will make a statement on the matter. [37082/20]
View answerAs Minister for Transport, I have responsibility for overall policy in relation to roads. The planning, design and implementation of individual road projects on national roads are a matter for Transport Infrastructure Ireland under the Roads Acts 1993-2015 in conjunction with the relevant local authority. For regional and local roads it is a matter for each respective local authority.
More specifically, the statutory powers to levy tolls on national roads as well as regional and local roads, to make toll bye-laws and to enter into toll agreements with private investors are vested in TII (for national roads) and each local authority (for regional and local roads) under Part V of the Roads Act 1993 (as amended by the Planning and Development Act 2000 and the Roads Act 2007).
Noting the above, I am referring the question to TII for direct reply within 10 working days. Please inform my private office if you do not receive the information.
250. Deputy Jackie Cahill asked the Minister for Finance if a matter will be reviewed in the case of a person (details supplied); and if he will make a statement on the matter. [36194/20]
View answerI am advised by Revenue that the National Car Testing Service (NCTS) registers all vehicles for Vehicle Registration Tax (VRT) purposes.
Revenue has also advised me that camper vans are different to other vehicles for VRT registration purposes in that they have unique features that require the specification of each vehicle to be separately examined. Consequently, the NCTS refers all such VRT applications to Revenue for review. This contrasts with the registration process for other passenger motor vehicles, where the VRT due is calculated (by the NCTS) based on the Open Market Selling Prices (OMSP).
Revenue is conscious of the different arrangements that operate for camper van owners in registering their vehicles for VRT purposes and is currently reviewing the process to determine what improvements can be made to the process. Revenue intends to engage with the camper van sector as part of the review and in this context will consult with the business referenced by the Deputy.
251. Deputy Neale Richmond asked the Minister for Finance if he has had an engagement with the Central Bank regarding the deposit ratio to secure a mortgage which for many persons is the biggest hurdle to home ownership; and if he will make a statement on the matter. [36294/20]
View answerThe Central Bank of Ireland, as part of its independent mandate to preserve and protect financial stability in Ireland, has statutory responsibility for the regulation of mortgage lending by banks and other regulated entities. In line with this mandate, the Central Bank introduced macro-prudential measures for residential mortgage lending by such institutions in February 2015. The objective of these macro prudential measures is to mitigate systemic risk and promote financial stability, to increase the resilience of the banking sector and households to the property market and to reduce the risk of credit spirals from developing in the future. These macro-prudential measures apply certain loan-to-value (LTV) and loan-to-income (LTI) restrictions to residential mortgage lending by financial institutions regulated by the Central Bank. In general, the maximum mortgage limits are 3.5 times the borrower’s income and, for first-time buyers, 90% of the value of the residential property. For second and subsequent buyers the maximum mortgage are 3.5 times the borrower’s income and 80% of the value of the residential property.
However, under the mortgage lending rules framework, banks and other mortgage lenders have a certain flexibility to provide a mortgage loan in excess of the specified LTV and LTI regulatory limits. For example, the rules allow lenders to provide up to 20 per cent of their mortgage lending to second and subsequent buyers in excess of the 80 per cent LTV threshold. In addition, borrowers who are currently in negative equity and want to move home by purchasing another property are exempt from the LTV limits.
These, however, are discretionary exemptions and it is a commercial matter for each individual lender to decide, having regard to its own lending policies and loan underwriting criteria, whether or not it wishes to avail of those various discretions. Ultimately, subject to the requirement to comply with the provisions of the macro-prudential mortgage lending rules, the Central Bank Consumer Protection Code and other regulatory requirements, it is a matter for each lender to decide whether or not to provide a loan in any particular case, or how much mortgage credit to provide in any particular case. I as Minister for Finance, do not have a role in the commercial decision making processes of credit institutions . This is a commercial matter for each individual credit institution having regard to the relevant legal and regulatory requirements which apply.
The lending rules were last reviewed in November 2019 with the Central Bank Commission concluding that the mortgage measures as calibrated at that time continued to be effective and no change to the mortgage lending regulations was made. It is expected that the Central Bank’s 2020 review of the macro prudential mortgage lending measures will be concluded before the end of the year.
The Central Bank’s consumer protection framework also includes a number of measures to protect consumers who are taking out a mortgage and seeks to ensure that lenders are transparent and fair in all their dealings with borrowers and that borrowers are protected from the beginning to the end of the mortgage life cycle. The Consumer Protection Code 2012 requires regulated entities to carry out affordability and suitability assessment, prior to offering, recommending, arranging or providing a credit product to a personal consumer. Separately, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 require that creditors assess the creditworthiness of the consumer before concluding a credit agreement.
However, subject to the requirement to comply with the relevant legal and regulatory requirements which govern the provision of residential mortgage credit to consumers, as indicated it is ultimately a commercial matter for an individual lender to decide whether to offer particular products or whether to provide a new mortgage loan or decide on how much credit to provide in any particular case.
252. Deputy Matt Shanahan asked the Minister for Finance if the Covid restrictions support scheme will be adjusted to include business sectors (details supplied); and if he will make a statement on the matter. [36307/20]
View answer259. Deputy Richard Boyd Barrett asked the Minister for Finance the reason on-course bookmakers have been excluded from the Covid restrictions support scheme (details supplied); and if he will make a statement on the matter. [36165/20]
View answer260. Deputy Brendan Griffin asked the Minister for Finance the status of an appeal by a person (details supplied); and if he will make a statement on the matter. [36177/20]
View answer262. Deputy Niall Collins asked the Minister for Finance if consideration has been given to awarding on-course bookmakers support under the Covid restrictions support scheme in view of the fact that they have been unable to trade as a direct result of Covid-19; and if he will make a statement on the matter. [36236/20]
View answer266. Deputy Cathal Crowe asked the Minister for Finance if consideration will be given to amending section 4.24 of the Covid restrictions support scheme in order that businesses in the supply chain to the events and entertainment sector are in a position to benefit; and if he will make a statement on the matter. [36636/20]
View answer271. Deputy Christopher O'Sullivan asked the Minister for Finance if payments of the Covid recovery support scheme will be expedited; and if he will make a statement on the matter. [36738/20]
View answer276. Deputy Brendan Griffin asked the Minister for Finance if a business (details supplied) in County Kerry that is closed due to Covid-19 restrictions is eligible for the Covid restrictions support scheme; and if he will make a statement on the matter. [36805/20]
View answer278. Deputy James Lawless asked the Minister for Finance the reason there are no Covid restrictions support schemes for the event industry; and if he will make a statement on the matter. [36852/20]
View answer280. Deputy Steven Matthews asked the Minister for Finance if an extension to the Covid restrictions support scheme is being considered that would allow secondary suppliers (details supplied) access to the scheme in cases in which they can demonstrate a significant loss of revenue due to the Covid-19 restrictions. [36886/20]
View answer284. Deputy Verona Murphy asked the Minister for Finance the reason the eligibility criteria for the Covid restrictions support scheme do not extend to secondary supply businesses such as fish suppliers, florists and food producers whose businesses have been decimated by the level 5 closures; and if he will make a statement on the matter. [37017/20]
View answerI propose to take Questions Nos. 252, 259, 260, 262, 266, 271, 276, 278, 280 and 284 together.
The details of the Covid Restrictions Support Scheme (CRSS) are set out in the Finance Bill 2020 and guidelines on the operation of the scheme are available on the Revenue website (https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf). The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.
The CRSS was announced on Budget day and the operational details are being worked though as quickly as possible. The scheme will be implemented by the Revenue Commissioners who have shown as an organisation that they are very effective in operating schemes to support businesses in this crisis.
The support will be available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.
Where, as a result of the restrictions, a company or a self-employed individual is either forced to temporarily close their business, or their business is required to operate at significantly reduced levels, they will qualify for support under the scheme. Certain other conditions will apply, including that the person has a tax clearance certificate.
Where businesses ordinarily operate from a business premises (generally a building) located in a region for which restrictions are in operation, they may qualify under the scheme provided they meet the eligibility criteria, including the requirement that customers are either prohibited, or significantly restricted, from accessing their business premises to purchase goods or services due to the specific terms of the Covid restrictions announced by Government.
Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as an outside caterer or an events company, that business will not meet the eligibility criteria. A business that does ordinarily operate from a music or entertainment venue (for example, a company that operates a theatre) or a business in the tourism sector carrying on a trade consisting of, for example, the operation of a gallery or other cultural attraction, located in a region subject to restrictions, and who meets the eligibility criteria, will however be able to claim support under CRSS.
The scheme will not apply to a business in the events industry or in other sectors, which does not ordinarily operate from a fixed business premises located in a region subject to the restrictions, but rather supplies goods or services to a business that does qualify for support under CRSS because, under the Covid restrictions, that other business is required to temporarily close or significantly reduce its activity. Each business must satisfy the eligibility criteria in their own right.
It is not sufficient that the business supplies goods or services to another business that qualifies for the support because, under the Covid restrictions, that other business is required to temporarily close, or significantly reduce, its activity.
I would also point out that the CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions. Companies and self-employed workers who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS) and the range of measures announced as part of Budget 2021 to support particular sectors including Tourism and live entertainment. They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.
Deputies will be aware that the Finance Bill is at Committee Stage of the legislative process this week but I have no plans to extend the scheme in the ways suggested.
There are two steps required to make a claim under the CRSS. The qualifying person must first register for CRSS on Revenue Online Service’ (ROS) and then complete a claim in respect of a claim period or claim periods. Revenue has been accepting registrations for the scheme since 1 November, and claims will be accepted from today with payments made shortly thereafter.
253. Deputy Kathleen Funchion asked the Minister for Finance the tax relief subsidy that parents can avail of if they use a registered childminder. [36536/20]
View answerThere is no income tax measure that parents can avail of that provides relief in respect of their use of registered childminding services. However, there is an income tax exemption - childcare services relief - that is available to individuals who provide childminding services in their own homes.
The legislation dealing with the relief is contained in section 216C of the Taxes Consolidation Act 1997.
In order to qualify for the relief, the individual providing the childminding services must –
- not receive more than €15,000 income per annum from the childminding activity,
- provide the service in their own home,
- not mind more than three children, who are under the age of 18 years, at any one time (this number does not include any child residing in the individual’s home), and
- be self-employed and registered for self-assessment with Revenue.
If another individual provides childcare services in the same home, the €15,000 income limit is divided between them.
Childcare workers who mind the children of healthcare and other essential workers are themselves essential workers. The HSE’s guidance provides that such childminding should only be done in the home of the child, rather than in the home of the carer. Revenue advises me that where, in line with HSE guidance, childminding services are provided in the home of the child rather than in the home of the carer, relief will still be available during the Covid-19 pandemic.
Revenue have also confirmed that the limit of three children will not apply where the individual is only caring for children who normally reside in the home concerned. Further information is being published on the Revenue website.
254. Deputy Cathal Crowe asked the Minister for Finance when assessments for primary medical certificates will recommence at a health centre (details supplied) in Limerick city; and if he will make a statement on the matter. [36975/20]
View answer255. Deputy Cathal Crowe asked the Minister for Finance the reason assessments for primary medical certificates were suspended at a health centre (details supplied) in Limerick city; and if he will make a statement on the matter. [36976/20]
View answer263. Deputy Marian Harkin asked the Minister for Finance when the processing of applications for primary medical certificates for disabled drivers and passengers will resume; when the application of a person (details supplied) will be dealt with; and if he will make a statement on the matter. [36269/20]
View answer265. Deputy John Brady asked the Minister for Finance when his Department will be in a position to reopen the application process for the disabled drivers tax concessions scheme; and if he will make a statement on the matter. [36476/20]
View answer275. Deputy Mattie McGrath asked the Minister for Finance the date primary medical certificate assessments will resume following the Supreme Court decision almost five months ago (details supplied). [36803/20]
View answerI propose to take Questions Nos. 254, 255, 263, 265 and 275 together.
The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations. In order to qualify for relief an organisation must be entered in the register of charitable organisations under Part 3 of the Charities Act 2009, be engaged in the transport of disabled persons and whose purpose is to provide services to persons with disabilities.
In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.
The terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 set out the medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC.
A Supreme Court decision of 18 June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal's refusal to grant them a PMC. The judgment found that the medical criteria set out in the Regulations did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.
On foot of the legal advice received, it became clear that it was appropriate to revisit the six medical criteria set out in Regulation 3 of Statutory Instrument 353 of 1994 for these assessments. In such circumstances, PMC assessments were discontinued until a revised basis for such assessments could be established. The medical officers who are responsible for conducting PMC assessments need to have assurance that the decisions they make are based on clear criteria set out in legislation. While Regulation 3 of Statutory Instrument No. 353 of 1994 was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989.
In order to allow for the PMC assessments to recommence I am bringing forward an amendment to the Finance Bill to provide for the existing medical criteria in primary legislation. When the Bill is enacted, this will allow for assessments to recommence in circumstances where the legal basis for such assessments is clarified.
I consider this to be an interim solution only. While I am very aware of the importance of this scheme to those who benefit from it, I am also aware of the disquiet expressed by members of this house and others in respect of the difficulties around access to the scheme. With this in mind I have asked my officials to undertake a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, and on foot of that review to bring forward proposals for consideration.
256. Deputy Ged Nash asked the Minister for Finance the amount of additional ring-fenced funding to be provided to domestic violence services under budget 2021 in order that services can respond adequately to increased incidence of domestic violence through Covid-19 and beyond; and if he will make a statement on the matter. [37129/20]
View answerMy Department is not responsible for setting funding for domestic violence services and therefore did not apportion funding under the 2021 Budget.
257. Deputy Bríd Smith asked the Minister for Finance the number of firms that availed of the temporary wage subsidy scheme that the authorities are currently investigating to ensure they fulfil the criteria for access to the scheme; the number of firms that have availed of the scheme that have submitted audited accounts to the Revenue Commissioners; and the number of firms that have availed of the scheme and that are also in receipt of other State aid, including the Covid restrictions support scheme, rates waiver and sector specific supports. [36141/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which operated from 26 March 2020 to 31 August 2020, provided over €2.9 billion of financial support to more than 66,500 qualifying employers on behalf of approximately eligible 664,000 employees.
As provided for in the Emergency Measures in the Public Interest (Covid 19) Act, Revenue is responsible for the administration of the TWSS and in exercise of this responsibility, has since June 2020, engaged in a phased programme of compliance checks on all participating employers. Revenue has advised me that over 70% of these checks are fully completed at this time, and have, for the most part, confirmed high levels of compliance by employers with the conditions of the scheme.
As part of the compliance checks, Revenue requested employers to confirm eligibility for the TWSS by reference to the decline in their turnover in Quarter 2 of 2020 due to COVID-19 related restrictions, and to provide sample payslips confirming payment of the subsidy to their eligible employees. This level of detail should have been readily available to employers as they formed part of the core eligibility criteria for the TWSS. Revenue has confirmed that it did not request employers to submit audited accounts as part of the compliance checks as this was not an eligibility requirement for the scheme. Revenue has also advised me that approximately 1,000 employers were subjected to a more detailed review following the initial compliance checks. Of these, almost 500 are completed at this point with enquiries continuing in respect of the remainder.
Regarding the Deputy’s question on TWSS recipient employers availing of ‘other COVID-19 State aided schemes’, Revenue has confirmed that, at end September 2020 (the latest date for which the analysis has been completed), approximately 20,000 (30%) of the total number of former TWSS recipient employers were in receipt of the Employment Wage Subsidy Scheme (EWSS), which replaced the TWSS from 1 September 2020. This figure is expected to rise when October data is fully analysed. Revenue has also advised that, as registration for the COVID-19 Restriction Support Scheme (CRSS) has only recently commenced, it is not yet possible to provide the number of former TWSS recipient employers now availing of that scheme.
Finally, Revenue is not involved in the administration of commercial rates or ‘other specific sector supports’ outside of the TWSS, EWSS, CRSS subsidy schemes and the Debt Warehousing scheme, which currently contains €2.2 billion of ‘parked’ tax debt owed by businesses impacted by COVID-19 related restrictions. The Deputy's query on the rates waiver is a matter for the Department of Housing, Local Government and Heritage.
258. Deputy Richard Boyd Barrett asked the Minister for Finance if he can intervene with banks that are refusing mortgages to workers whose employers are in receipt of the wage subsidy scheme; and if he will make a statement on the matter. [36144/20]
View answerI have met with the CEOs of the banks on a number of occasions since the pandemic arose to discuss the measures banks and other regulated lenders can put in place to assist their borrowers who are economically impacted by COVID-19 and also the need to continue to support overall credit and lending in the economy, including new residential mortgage lending. In regard to the specific issue of new mortgage lending, the three main retail banks assured the Tánaiste, Leo Varadkar T.D., Minister McGrath and myself at meetings last July that they were considering mortgage applications and mortgage drawdowns in relation to their customers who were on the Temporary Wage Subsidy Scheme (TWSS) on a case by case basis and that they are taking a fair and balanced approach.
The purpose of the Employment Wage Subsidy Scheme (EWSS), which as the Deputy will know replaced the TWSS, is to support employers by helping them to continue trade as they deal with risk arising from COVID-19, and this puts employers in a position to retain key staff and ensure the viability of businesses and firms.
In respect of the approach of regulated mortgage lenders on new mortgage lending, the Central Bank has advised that it also expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic. As indicated, lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. Therefore, if mortgage applicants have any queries or concerns about the impact of COVID-19 on their mortgage application, they should in the first instance contact their lender directly on the matter.
However, within the parameters of the regulatory framework, set out as follows, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity. Also a formal loan offer may contain a condition that would allow the lender to withdraw or vary the offer if in the lender’s opinion there is any material change in circumstances prior to drawdown. In such cases, the decision to withdraw or vary the offer is also a commercial and contractual decision for the lender.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.
In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation.
Where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.
If a mortgage applicant is not satisfied with how a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If the mortgage applicant is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman.
