Tuesday, 1 Dec 2020

Written Answers Nos. 212-236

Value Added Tax

Questions (212)

Cormac Devlin

Question:

212. Deputy Cormac Devlin asked the Minister for Finance if beauty salons are covered by the recent reduction in the VAT rate; and if he will make a statement on the matter. [39806/20]

Written answers

Minister for Finance

As the Deputy will be aware, the VAT rate applied to Tourism and Hospitality related goods and services has been temporarily reduced from 13.5% to 9%, from 1 November 2020 to 31 December 2021, in recognition of the unprecedented challenges facing the sector. This change will apply to restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing, as well as certain printed matter.

The VAT rates applying in Ireland are subject to the requirements of EU VAT law with which Irish VAT law must comply. While hairdressing services will apply the 9% rate from 1 November, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate.

This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items. However, this is conditional on the rate being no less than 12%. These are known as ‘parked’ items, and are provided for under Article 118 of the EU VAT Directive. As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.

Questions Nos. 213 and 214 answered with Question No. 202.

Covid-19 Pandemic Supports

Questions (215)

Cormac Devlin

Question:

215. Deputy Cormac Devlin asked the Minister for Finance if his attention has been drawn to the case of a person (details supplied); the reason an employer was allowed to submit an application for the temporary wage subsidy scheme and have it accepted yet nine months later reverse the decision; if the matter will be investigated and the decision reconsidered; and if he will make a statement on the matter. [39815/20]

Written answers

Minister for Finance

The Temporary Wage Subsidy Scheme (TWSS), which is provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, operated from 26 March 2020 to 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020. The scheme was introduced as an emergency measure to provide financial support to businesses that were severely economically impacted by the pandemic and enabled employees whose employers could no longer afford to pay wages receive subsidy payments. The scheme was not intended as a support to employers in respect of employees who provide domestic duties within a private household nor was it ever implied that it applied to them.

The provision of domestic duties by an employee within a private household, where the employer is the owner or occupier is not a business activity. A relevant business in the context of the TWSS generally includes manufacturing, buying, selling or supplying goods or services with a view to making a profit, none of which can be associated with employing staff who carry out domestic duties. It is also not possible for such employers to meet the minimum 25% business turnover decline eligibility test as there is no turnover associated with engaging an employee to carry out domestic duties.

The TWSS operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully met the eligibility criteria for the scheme and to self-declare to Revenue that they correctly qualified. To assist employers in determining their eligibility, Revenue published very extensive guidance, which clearly set out the qualifying conditions, including the requirement that a minimum 25% decline in business turnover had occurred due to COVID-19 related restrictions.

Revenue consistently referenced the minimum 25% business turnover decline eligibility requirement throughout the intensive media briefings, press releases and political responses that were provided during the period of operation of the TWSS. Revenue also clearly confirmed that, in line with all other self-assessment regimes, it would engage with TWSS claimants to ensure they properly qualified for the subsidy and that payments were passed on to eligible employees. This was a very important action to undertake given the level of public funds invested in the TWSS.

As part of this compliance checking process, Revenue contacted all employers (approx. 66,500) that availed of the TWSS, including the person in question, to ensure they were correctly eligible for the scheme. As part of the compliance check, employers were asked to confirm that they had suffered the minimum 25% decline in business turnover, and to provide payslip evidence that the funds were correctly passed on to their relevant employees. Where ineligible employers incorrectly claimed and received TWSS payments, they were requested to repay the amounts received.

Revenue wrote to the person in question in early November 2020 requesting repayment of the TWSS amounts incorrectly claimed by them. Revenue also confirmed to the person that they were ineligible for the scheme as they did not meet the qualifying criteria in their capacity as an employer of a domestic employee. Revenue had previously set out the qualifying criteria for the scheme in correspondence with the person in March 2020, which clearly stated the requirement for a decline of at least 25% in business turnover. The person subsequently self-declared to Revenue on 26 March 2020 that they met the eligibility criteria, including in respect of the required minimum 25% decline in business turnover, and on that basis was provided with access to the scheme.

There is now a requirement on the person to repay the amounts that were incorrectly claimed, and it is important that they engage with Revenue as quickly as possible to agree a repayment arrangement. Non engagement on the matter by the person may result in Revenue raising assessments and taking action to secure the repayment in question.

Question No. 216 answered with Question No. 202.

Banking Sector

Questions (217)

Niamh Smyth

Question:

217. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); his views on the campaign to retain rural services; if his Department has engaged with the bank on the issue; and if he will make a statement on the matter. [39857/20]

Written answers

Minister for Finance

As I outlined to the Deputy on the 3rd November, I am aware of the 'Save our Ulster Bank' campaign and I share the concerns outlined in the correspondence.

As the Deputy will be aware, I met with representatives of Ulster Bank on the 21 of October. I outlined that I expected that staff, customers and other stakeholders would be informed promptly about any decisions being made. In particular, I asked that staff representatives be consulted and kept informed of developments. I also emphasised the importance of Ulster Bank to the Irish financial services market, to the wider economy and to the communities it serves.

Ulster Bank confirmed that the strategic review is ongoing and that no decision has yet been taken. Ulster Bank also confirmed that there is no set timetable for this review and that it is fully aware of the strategically important role that Ulster Bank plays in the provision of financial services to the Irish market.

News of the review is, of course, unsettling for all stakeholders, especially the staff and customers. I outlined that I expect Ulster Bank to keep all its stakeholders, especially its staff and customers, fully informed about any developments in the review and engage with them in relation to any proposals or decisions that result from the review promptly.

The continued presence of a viable and active Ulster Bank in the Irish market would be the most welcome outcome. Ulster Bank is a significant employer and has 88 branches across the country. Ulster Bank is also important in terms of providing competition in the Irish retail banking market.

While I will have further engagement with the bank as the review process continues, I would like to emphasise that I have no role in the review or any commercial decisions arising from it. My officials will continue to monitor developments.

Motor Insurance

Questions (218)

Dessie Ellis

Question:

218. Deputy Dessie Ellis asked the Minister for Finance if professional drivers in receipt of the pandemic unemployment payment will have issues with insurance cover directly relating to the period they were off work due to the gap in insurance coverage addressed (details supplied); and if he will make a statement on the matter. [39892/20]

Written answers

Minister for Finance

At the outset it is important to note that neither I, as Minister for Finance, nor the Central Bank of Ireland can intervene in the provision or pricing of insurance products, as this is a commercial matter. This position is reinforced by the EU framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies as to how they price their policies or what terms and conditions they apply in those policies.

Notwithstanding this, I note the situation as outlined, as it appears to relate to the forbearance measures that a number of Insurance Ireland members agreed to earlier this year. To be of assistance to the Deputy, my officials contacted Insurance Ireland, in relation to the issue. It advised that this particular set of circumstances is not one that it has previously encountered. In addition, Insurance Ireland would like to assist the policyholder to resolve this situation, and suggested that the individual impacted should contact it’s Insurance Information Service, with a view to achieving a speedy and satisfactory outcome. This service can be accessed at: [e-mail].

As the Deputy will know, I strongly believe that the insurance sector must play an important role in assisting their customers during and after the COVID-19 pandemic, and this is also recognised in the Programme for Government. My officials and I have engaged with the insurance industry extensively in relation to the provision of motor insurance reliefs to motorists in general and specific forbearance measures to professional drivers, such as taxi drivers, who were not able to conduct their business through COVID-19 restrictions earlier this year. While I am satisfied that it appears that the issue as outlined may be an isolated incident, it is an issue that my officials will monitor in case this is part of a wider industry practice.

Finally, I would note that generally if a consumer has a service complaint regarding their insurance provider, it is advisable that they make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at [e-mail] or by telephone at 01-5677000.

EU Regulations

Questions (219)

Joe McHugh

Question:

219. Deputy Joe McHugh asked the Minister for Finance the regulations in place with regard to a crowdfunding platform (details supplied); and if he will make a statement on the matter. [39928/20]

Written answers

Minister for Finance

Crowdfunding is a way to raise funds for a specific cause or project by asking a large number of people to provide money, usually in small amounts, and usually during a relatively short period of time, such as a few months. It can be used by SMEs as an alternative way to finance their business and also by ordinary people and charities to raise money for causes, where the money is donated. Crowdfunding is not currently a regulated activity in Ireland.

A new EU Regulation on European crowdfunding service providers for business aims to deliver a uniform framework for crowdfunding service providers and introduce a straightforward passporting regime across the EU. The Regulation was published on 10 November 2020 and it will come into force a year after publication.

The Regulations apply to European Crowdfunding Service Providers financing projects up to a value of €5,000,000 per project (calculated over a 12 month period). Reward and donation based crowdfunding operations fall outside of the scope of the Regulation which covers lending and investment based crowdfunding.

Authorised Crowdfunding Service Platforms will be subject to ongoing supervision by the Central Bank and will need to provide an annual report of their work to the Central Bank. The European Securities and Markets Authority (ESMA) will maintain a public register of all authorised CSPs.

Go Fund Me is a US based crowdfunding platform, used for raising charitable donations and as such, it will not fall within the scope of the EU regulation on European crowdfunding service providers.

EU Regulations

Questions (220)

Noel Grealish

Question:

220. Deputy Noel Grealish asked the Minister for Finance the status of EU Regulation 2019/2088 on sustainability-related disclosures in the financial services sector; if it has been transposed into law; if so, the legislation under which; if not, the legislative and other plans to do so; and if he will make a statement on the matter. [39943/20]

Written answers

Minister for Finance

EU Regulation 2019/2088 on sustainability-related disclosures in the financial sector (the “Sustainable Finance Disclosures Regulation” or “SFDR”) came into force in December 2019. It was subsequently amended by the Regulation on the establishment of a framework to facilitate sustainable investment (the “EU Taxonomy Regulation”). The Disclosures Regulation will apply generally from 10 March 2021, with certain obligations taking effect later.

This new regulation introduces additional disclosure requirements to the existing elements of relevant sectoral legislation. As a regulation, it will have direct effect and become part of national law from the date that it applies.

The European Commission recently announced that it will delay the imposition of the underlying technical standards for the regulation, however the rules will still come into force in March, and financial market participants and financial advisers subject to the Regulation will need to comply with its high level and principle based requirements from that time.

National Asset Management Agency

Questions (221)

Jim O'Callaghan

Question:

221. Deputy Jim O'Callaghan asked the Minister for Finance when NAMA will start construction on the Irish Glass Bottle site, Ringsend, Dublin 4, in order to provide much needed social and affordable housing. [39949/20]

Written answers

Minister for Finance

I am advised by NAMA that there is a comprehensive process ongoing in order to select an investment partner with the requisite resources, skill and experience to commercially develop the former Glass Bottle site at Poolbeg West SDZ site. This open market process commenced in July 2019 following substantial due diligence by NAMA into the appropriate strategy to enable the commercial development of the site and delivery of housing at the earliest opportunity.

As the Deputy may be aware, the approved SDZ Planning Scheme provides for up to 3,500 new homes, 25% of which will be social and/or affordable. NAMA has worked intensively to progress necessary pre-development exercises in order that the site can be commercially developed as soon as practicable. This extensive preparatory work includes the attainment of planning permission in January 2020 for the Phase 1 Infrastructure which ensures the site is shovel-ready for development once the current process completes.

Covid-19 Pandemic Supports

Questions (222)

James Lawless

Question:

222. Deputy James Lawless asked the Minister for Finance if physiotherapists qualify under the Covid restrictions support scheme; and if he will make a statement on the matter. [40054/20]

Written answers

Minister for Finance

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, including the eligibility criteria for the scheme, are available on the Revenue website at: 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. It is available to companies, self-employed individuals and partnerships 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 business is forced to temporarily close or is required to operate at significantly reduced levels, the business may qualify for support under the scheme. It is not sufficient that a business is experiencing a reduction in demand for its services because of Covid-19. To qualify under the scheme, the reduction in business activity must be because, under the specific terms of the restrictions in operation, customers are restricted from accessing the business premises in which the business activity is carried on.

Therapy services provided by a member of a designated profession within the meaning of section 3 of the Health and Social Care Professionals Act 2005, which includes physiotherapists, are considered essential services. On the basis that essential service providers are not subject to Covid restrictions which would require them to prohibit or significantly restrict access to their business premises, a physiotherapist does not qualify for CRSS.

Banking Sector

Questions (223)

Louise O'Reilly

Question:

223. Deputy Louise O'Reilly asked the Minister for Finance the reason the Central Bank is not a member of the Basel committee; and if he will make a statement on the matter. [40056/20]

Written answers

Minister for Finance

The Basel Committee on Banking Supervision (BCBS) at the Bank for International Settlements (BIS) is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability.

The Committee has 45 members comprising central banks and bank supervisors from 28 jurisdictions.

Additionally, the Committee has nine observers including central banks, supervisory groups, international organisations and other bodies.

The Central Bank of Ireland is represented on the Committee by the European Central Bank (ECB) and the Single Supervisory Mechanism (SSM).

The Central Bank of Ireland is not a member of the Basel Committee as Ireland is not a G20 country and our banks are not sufficiently large.

Covid-19 Pandemic Supports

Questions (224)

Verona Murphy

Question:

224. Deputy Verona Murphy asked the Minister for Finance the appeals process for exclusion or refusal on eligibility criteria from the Covid restrictions support scheme; and if he will make a statement on the matter. [40109/20]

Written answers

Minister for Finance

The Covid Restrictions Support Scheme (CRSS) was announced in the Budget on 13 October 2020. The details are set out in Finance Bill 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.

Finance Bill 2020, as amended at the Committee Stage, provides for an appeal mechanism for taxpayers in circumstances where a Revenue officer determines that the taxpayer does not meet the eligibility criteria for CRSS. The determination by the Revenue officer must be made in writing to the taxpayer, and where the taxpayer disagrees with that determination, can, within 30 days of the notice of the determination, make an appeal to the Tax Appeals Commission.

If an Appeals Commissioner subsequently determines that the taxpayer does meet the eligibility criteria for the purpose of the scheme, the eight-week time period for making a claim under CRSS will start from the day the determination is issued by the Appeals Commissioner.

I would note that the Tax Appeals Commissioners cannot make determinations on any CRSS-related matter until after the Finance Bill which contains the CRSS provisions is enacted.

Guidance on how to make an appeal to the Tax Appeals Commission is set out on www.taxappeals.ie.

Bank Charges

Questions (225)

Paul McAuliffe

Question:

225. Deputy Paul McAuliffe asked the Minister for Finance his views on changes to bank charges at banks (details supplied); if his attention has been drawn to the fact that this may lead to substantial increases for some customers; and if he will make a statement on the matter. [40185/20]

Written answers

Minister for Finance

I wish to highlight that as Minister for Finance, I have no role to play in commercial decisions made by any bank, including product pricing and fee structures. This applies equally to the banks in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis.

The independence of the banks is protected by Relationship Frameworks which are legally binding documents and which cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market. The Relationship Frameworks for AIB and BOI can be found at the following links:

https://assets.gov.ie/5905/220119170216-48b36141fde24091b6038e380bdf53a7.pdf.

https://assets.gov.ie/5902/220119165518-368886e707b94e0dbbc758784b38c9ad.pdf.

Tax Code

Questions (226)

Peadar Tóibín

Question:

226. Deputy Peadar Tóibín asked the Minister for Finance the measures being considered to broaden Ireland's tax base beyond over-reliance on income tax revenues; and if he will make a statement on the matter. [40195/20]

Written answers

Minister for Finance

My officials and I are fully aware of the risks associated with this level of concentration and volatility and will continue to monitor the situation closely so that the risks of over-reliance on potentially cyclical or over-concentrated receipts under specific tax heads can be understood and mitigated. The actions that have been taken to mitigate these risks allowed scope for the Government to introduce a range of emergency support and stimulus measures in response to COVID-19. These include the creation and funding of the Rainy Day Fund, prioritising the reduction of debt and continuing to broaden the tax base.

A number of measures have been taken in this regard in recent years and include the introduction of the Universal Social Charge, annual domicile levy, and the Sugar Sweetened Drinks Tax. Non-indexation of tax thresholds, bands and credits can also operate to broaden the tax base. I have also taken steps to broaden and enhance the stability of our corporation tax base, including through the introduction of the 80 per cent cap on capital allowances for intangible assets in Budget 2018 and the introduction of a broader Exit Tax regime in Budget 2019.

The introduction of the Local Property Tax (LPT) in 2013 broadened the tax base to include residential properties and the tax is providing a stable funding base for local government. I propose to advance legislative proposals early in 2021 to implement the 2020 Programme for Government commitments and secure the future of the LPT.

More recently changes to the VAT rate and carbon tax changes were introduced. The Programme for Government also recognises that we need to remain cognisant of avoiding the mistakes of the past and being overly reliant on a narrow set of taxes. The carbon tax is set to increase throughout the lifetime of this government with an annual increase of €7.50 per annum to 2029 and €6.50 in 2030. To the extent that taxation measures are required to close the deficit in the medium term, the Programme for Government notes that we will focus any tax measures on behaviour with negative externalities such as carbon tax, sugar tax and plastics. This can be seen as a further step in broadening the tax base.

National Debt

Questions (227, 228)

Peadar Tóibín

Question:

227. Deputy Peadar Tóibín asked the Minister for Finance the size of Ireland's national debt; and the annual repayment and servicing of the debt costs. [40196/20]

Peadar Tóibín

Question:

228. Deputy Peadar Tóibín asked the Minister for Finance when he expect Ireland's national debt to be reduced by at least 50%. [40197/20]

Written answers

Minister for Finance

I propose to take Questions Nos. 227 and 228 together.

National Debt is the indebtedness of the Exchequer after netting off Exchequer cash balances and other financial assets such as Housing Finance Agency Guaranteed Notes. The National Debt is managed by the National Treasury Management Agency (NTMA). The NTMA’s Annual Report & Accounts 2019 (available at https://www.ntma.ie/uploads/publication-articles/NTMA-Annual-Report-2019-English.pdf) provides further details of the breakdown of the National Debt on pages 83-104.

National Debt at end-2019 was circa €188 billion, however, the most comprehensive measure of public debt is General Government Debt (GGD) as it also includes Local Government, extra-budgetary funds, non-commercial state bodies etc. GGD is a measure of the total gross debt liabilities of the consolidated General Government Sector and is compiled based on the European System of Accounts (ESA10) methodology and is used for comparative purposes across the European Union.

GGD at end-2019 was just over €204 billion. Reflecting the impact of the COVID-19 pandemic on the economy and public finances, end-2020 GGD was forecast – in the recent Budget 2021 – at just under €219 billion.

National Debt Service (NDS) differs from General Government (GG) interest for a number of reasons. NDS reflects the net interest, fees and operating expenses, on the National Debt prepared on a cash basis. Whereas the GG interest is prepared on an ESA10 accruals basis and represents the projected interest cost of the wider GG measure of debt. The GG interest measure includes consolidation adjustments in respect of interest paid between bodies inside the GG sector and excludes fees and operating expenses which are captured elsewhere in the GG accounts.

NDS in 2019 was €5.2 billion whereas GG interest was €4.5 billion. For 2020, NDS was projected, at the time of Budget 2021, at €4.7 billion while GG interest was forecast at €3.9 billion. Therefore, despite the increase in debt, the interest bill continues to decline. This reflects the favourable funding and interest rate environment, which is underpinned by large-scale ECB monetary policy support, including its asset purchase programmes.

While GGD is expected to increase further next year, the pace of public debt accumulation will need to be slowed once the most acute phase of the pandemic has passed. This will be done by returning the public finances to a balanced position. In this context, the Government will set out – in the spring – a medium-term trajectory showing how the deficit will be eliminated.

Value Added Tax

Questions (229)

Peadar Tóibín

Question:

229. Deputy Peadar Tóibín asked the Minister for Finance the cost to the Exchequer of the VAT exemption on white and cylindrical candles per annum. [40198/20]

Written answers

Minister for Finance

Candles that are white (including off-white and cream) and cylindrical are zero rated for VAT purposes. Other candles, such as those that are decorated, spiralled, tapered or perfumed, are liable to VAT at the standard rate.

I am informed by Revenue that VAT returns do not require traders to separately identify specific product or service types. Therefore, there is no information available on which to estimate the yield that would arise should such candles be taxed at the standard rate.

Departmental Contracts

Questions (230)

Catherine Murphy

Question:

230. Deputy Catherine Murphy asked the Minister for Finance if he will provide a schedule of all consultancy firms, accountancy firms, legal firms, project management firms and IT firms his Department has engaged to carry out work on its behalf in 2018, 2019 and to date in 2020; if he will summarise the work they were engaged to do and the full costs of the engagements; if disputes over costs ensued; if they were resolved with or without sanctions and-or financial penalties and-or withholding of funds; and if contracts are subject to legal challenge or mediation. [40210/20]

Written answers

Minister for Finance

My Department has included a table providing a schedule of all consultancy firms, accountancy firms, legal firms, project management firms and IT firms engaged to carry out work on its behalf in 2018, 2019 and to date in 2020 including a summary of the work they were engaged to do and the full costs of the engagements; if disputes over costs ensued; if they were resolved with or without sanctions and or financial penalties and or withholding of funds; and if contracts are subject to legal challenge or mediation:

Year	Company Name	Details(Include summary of work the company were engaged to do)	Total payments made per year	Any disputes with the company over costs Y/N
2018	Bloomberg L.P.	Access to financial market data	€ 27,040.53	N
2018	William Fry	Legal Advice	€ 123,599.38	N
2018	Arthur Cox	Legal Advice	€ 428,718.24	N
2018	KPMG	Professional Services	€ 119,137.80	N
2018	PAS	Board Recruitment	€ 84,731.70	N
2018	A & L Goodbody	Legal Advice	€ 44,034.00	N
2018	Reveal Data Corporation	Legal: eDiscovery	€ 1,614.38	N
2018	Central Bank of Ireland	Fee in respect of services provided by the Risk and Resilience team (CBI) to the Financial Stability Group (FSG) agencies for the design and delivery of the FSG Crisis Simulation Exercise in 2017. [FSG Agencies include D/Finance, Central Bank and the NTMA]	€ 17,074.00	N
2018	Gwen Malone Stenography	Stenography services.	€ 2451.87	N
2018	Gwen Malone Stenography	Stenography services.	€ 2451.87	N
2018	Fitzpatrick Associates	Credit Demand Survey (Wave 1)*	€ 73,738.50	N
2018	Fitzpatrick Associates	Credit Demand Survey (Wave 2)*	€ 73,738.50	N
2018	Language Communications	Switch your Bank Phase II: Creative, Web Development, Project Management, Management and Media Fees**	€ 405,900	N
2018	PwC Executive Search	This payment relates to consultancy to recruit members of the Central Bank Commission.	€ 30,750.00	N
2018	Michael G. Tutty	Payment for a report on the Regulation of Personal Contract Plans (PCPs).	€ 3770.00	N
2018	Indecon International Economic Consultants	This payment is for an independent report conducted by Indecon entitled the Benchmarking of Ireland’s Payments Industry.	€ 96,890.79	N
2018	Matheson	Payment in respect of the consolidation of the Central Bank Acts.	€ 123,034.87	N
2018	TMF Corporate Secretarial Services Limited	Fee for the appointment of a Process Agent as per the Guarantee and Indemnity deed for a loan from the European Investment Bank and the Housing Finance Agency. This deed was countersigned by the European Investment Bank and the Minister for Finance in May 2017 and is expected to be in force for approximately 25 years (the loan duration). The appointment of a Process Agent is one of the condition precedents of the deed.	€ 816.48	N
2018	William Fry	Fees paid by the Department in respect of legal costs relating to State Aid	€ 347,575.85	N
2018	Indecon Economic Consultants	Help to Buy Cost Benefit Analysis	€ 93,353.00	N
2018	Indecon Economic Consultants	Review of Employment and Investment Incentive	€ 93,517.00	N
2018	Indecon Economic Consultants	Report on the Taxation of Vacant Residential Property	€ 154,493.00	N
2018	Law Library and Four Courts	Discovery and Documentary Review Services	€ 4,879.45	N
2018	Jim Power Economics Limited	Evaluation of the Department's Macroeconomic and Fiscal Forecasts	€ 17,220.00	N
2018	Macrobond Financial AB Consultancy	Software/stats updates provided by Macrobond to facilitate the analysis done in Economics Division	€ 25,437.50	N
2018	Economic and Social Research Institute	Joint Research Programme with the Department of Finance	€ 230,241.50	N
2019	Bloomberg L.P.	Access to financial market data	€ 27,378.46	N
2019	Arcline	Review of draft updated records management policy	€ 307.50	N
2019	Grant Thornton	A review of the business model of the Department’s in-house Print Room service, with recommendations for a future model of service delivery and opportunities for improvement.	€ 23,985.00	N
2019	William Fry	Legal Advice	€ 276,426.67	N
2019	PAS	Board Recruitment	€ 46,022.50	N
2019	Arthur Cox	Legal Advice	€ 38,507.63	N
2019	Europus	Translation	€ 334.31	N
2019	Lilley Ventures (previously Reveal Data Corp)	Legal: eDiscovery	€ 8,746.03	N
2019	Language Communications	This payment is for hosting the www.switchyourbank.ie website for 2019**	€ 2066.40	N
2019	Social Finance Foundation	The Social Finance Foundation commissioned research into Unlicensed Moneylenders and the Department through its membership of the Personal Micro Credit Task Force contributed to a portion of the funding required for this research.	€ 5000.00	N
2019	William Fry	€24,600 was paid in March to William Fry for legal advice on Accelerated Extrajudicial Collateral Enforcement (AECE) Directive.	€ 24,600.00	N
2019	Merc Partners	This payment relates to consultancy to recruit the new Central Bank Governor.	€ 69,966.26	N
2019	Central Bank of Ireland	Fee in respect of services provided by the Risk and Resilience team (CBI) to the Financial Stability Group (FSG) agencies for the design and delivery of the FSG Crisis Simulation Exercise in 2018. [FSG Agencies include D/Finance, Central Bank and the NTMA]	€ 16,810.00	N
2019	William Fry	Fees paid by the Department in respect of legal costs relating to State Aid	€ 88,749.25	N
2019	Indecon Economic Consultants	Economic consultancy provided by Indecon in respect of the Air Travel Tax litigation.	€ 319,075.53	N
2019	Indecon Economic Consultants	Review of Special Assignee Relief Programme	€ 107,010	N
2019	Indecon Economic Consultants	Review of CGT Entrepreneurial Relief	€ 104,119.50	N
2019	Daniel J. Edelman Ireland Limited	Provision of specialist advice on using social media in overseas markets to promote Ireland for Finance	€ 24,395.00	N/A
2019	William Fry	Legal Research	€ 54,400.00	N/A
2019	Freshfields Bruckhaus Deringer LLP	Legal Research	€ 20,000.00	(€4,000.00 - Withholding tax)
2019	Softworks	Upgrade Time and Attendance system to current version	€ 6,608.79	N
2019	Economic and Social Research Institute	Joint Research Programme on the Macro-economy and Taxation	€ 97,822.00	N
2019	Economic and Social Research Institute	Joint Research Programme on the Macro-economy and Taxation	€ 137,322.00	N
2019	Macrobond Financial AB Consultancy	Software/stats updates provided by Macrobond to facilitate the analysis done in Economics Division	€ 12,937.50	N
2020	Bloomberg L.P.	Access to financial market data	€ 21,119.07	N
2020	William Fry	Legal Advice	€ 125,975.99	N
2020	A&L Goodbody	Legal Advice	€ 15,990.00	N
2020	Arthur Cox	Legal Advice	€ 28,615.16	N
2020	RSM	Professional Services	€ 30,442.50	N
2020	KPMG	Professional Services	€ 24,600.00	N
2020	PAS	Board Recruitment	€ 9,175.00	N
2020	Lilley Ventures	Legal: eDiscovery	€ 17,928.88	N
2020	Fitzpatrick Associates	Credit Demand Survey (Wave 3)*	€ 73,738.50	N
2020	Fitzpatrick Associates	Credit Demand Survey (Wave 4)*	€ 73,738.50	N
2020	Language Communications	This payment is for hosting the www.switchyourbank.ie website for 2020 **	€ 2066.40	N
2020	Indecon International Economic Consultants	This payment is for an independent report conducted by Indecon entitled the Evaluation of Concept of Community Banking in Ireland.	€ 133,393.50	N
2020	Fitzpatrick Associates	Credit Demand Survey (Wave 5)*	€ 73,738.50	N
2020	Fitzpatrick Associates	Credit Demand Survey (Wave 6)*	€ 73,738.50	N
2020	William Fry	Fees paid by the Department in respect of legal costs relating to State Aid	€ 95,416.02	N
2020	Daniel J. Edelman Ireland Limited	Provision of specialist advice on using social media in overseas markets to promote Ireland for Finance	€ 4,879.00	N/A
2020	McCann Fitzgerald	Advice re: AMLD 5	€ 22,564.90	N/A
2020	Economic and Social Research Institute	Joint Research Programme on the Macro-economy and Taxation	€ 147,974.00***	N
2020	Macrobond Financial AB Consultancy	Software/stats updates provided by Macrobond to facilitate the analysis done in Economics Division	€ 34,400.00***	N
2020	Capital Economics	Subscription to regular economic data and analysis updates	€ 15,000.00***	N

Note:

*The bi-annual Credit Demand Survey is an independent and statistically significant report into the Irish SME landscape and the availability of, and demand for, credit. The full cost of the survey is recouped from participating banks.

**The Switch your Bank campaign is a public awareness campaign to raise awareness and promote customer switching of financial products and is facilitated by the Department of Finance as part of its remit to ensure that consumers are protected within the financial sector in Ireland. The cost of the Switch your Bank campaign is fully recoupable by AIB and Permanent TSB in the context of their restructuring plans.

*** Figures ex VAT (not applicable)

Banking Sector

Questions (231, 232, 233)

Peadar Tóibín

Question:

231. Deputy Peadar Tóibín asked the Minister for Finance the research he has undertaken as to the effect on the Irish banking market by the proposed exit of a bank (details supplied) from the Irish market; the effect this will have on retail interests rates, customer access to physical banking facilities, the likelihood of banks to lend and so on. [40237/20]

Peadar Tóibín

Question:

232. Deputy Peadar Tóibín asked the Minister for Finance the steps he has taken to tackle the damage that will be created by the increased concentration of the banking market with the leaving of a bank (details supplied) from the Irish market. [40238/20]

Peadar Tóibín

Question:

233. Deputy Peadar Tóibín asked the Minister for Finance the plans he has to create competition within the Irish market, given the proposed exit of a bank (details supplied) from the Irish market; and if will he undertake the development of a public banking system to increase competition. [40239/20]

Written answers

Minister for Finance

I propose to take Questions Nos. 231 to 233, inclusive, together.

As the Deputy will be aware, I met with representatives of Ulster Bank on the 21 of October. I outlined that I expected that staff, customers and other stakeholders would be informed promptly about any decisions being made.

News of the review is, of course, unsettling for all stakeholders, especially the staff and customers. I outlined that I expect Ulster Bank to keep all its stakeholders, especially its staff and customers, fully informed about any developments in the review and engage with them in relation to any proposals or decisions that result from the review promptly.

I also emphasised the importance of Ulster Bank to the Irish financial services market, to the wider economy and to the communities it serves.

Ulster Bank confirmed that the strategic review is ongoing and that no decision has yet been taken. Ulster Bank also confirmed that there is no set timetable for this review and that it is fully aware of the strategically important role that Ulster Bank plays in the provision of financial services to the Irish market.

The continued presence of a viable and active Ulster Bank in the Irish market would be the most welcome outcome. Ulster Bank is a significant employer with 2800 employees and has 88 branches across the country. Ulster Bank is also important in terms of providing competition in the Irish retail banking market.

In the absence of direct knowledge about NatWest’s strategic review of Ulster Bank’s operations, I cannot and will not comment or speculate on possible outcomes as there is no basis for such speculation, which would be open to misinterpretation.

While I will have further engagement with the bank as the review process continues, I would like to emphasise that I have no role in the review or any commercial decisions arising from it. My officials will continue to monitor developments.

With regard to competition in the Irish banking sector, as the Deputy may be aware, the Department of Finance published a paper in 2019 by Indecon Consulting on an Evaluation of the Concept of Community Banking in Ireland. This was a follow on to a previous paper on Local Public Banking published by the Department of Finance in 2018. The Indecon report concluded that there is no business case for the State to establish a public banking system in Ireland, supporting the outcome of the previous report on Local Public Banking. While Indecon’s report concluded there are some areas of market failure, it noted that there is extensive provision of and access to banking services through some 1,900 bank branches, credit union offices and An Post branches, as well as a wide range of Exchequer funded existing supports.

Credit unions are increasing the offering of financial products for their members. The Credit Union Act, 1997 (the 1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 set out the services that credit unions may provide to their members. These include loans and savings under the 1997 Act and a further suite of services under the 2016 Regulations such as third party payments; ATM services; bureau de change and certain insurance services on an agency basis. I understand that a number of credit unions provide some of the services provided for under the 2016 Regulations. Where a credit union wishes to provide other services to its members, an application may be made to the Central Bank for approval to provide such services in accordance with the provisions set out in sections 48-51 of the 1997 Act.

One such additional service includes the Member Personal Current Account Service (MPCAS). In 2016, the Central Bank defined and described a suite of additional services known as MPCAS, under which approved credit unions may offer personal current accounts with debit cards, overdrafts and a wide range of payment services within an appropriate risk framework. To date, 54 credit unions have been approved to provide MPCAS.

An Post offers financial services including a payment account, personal loans, credit cards, a range of insurances, money transmission and foreign exchange services. An Post offers counter services for a number of retail banks, allowing customers to lodge and withdraw cash at An Post branches. There is there is a significant network of post offices in areas where there is no bank branch within five kilometres.

I would welcome the introduction of new lenders to the Irish market. It is, therefore, a welcome development that a new residential mortgage lender has recently entered the market and it will be of benefit to new mortgage borrowers and also to borrowers who may wish to consider switching to a new lender. With regard to the mortgage market, though the general level of lending interest rates in Ireland are higher than is the case in many other European countries, it should also be noted that recent trends indicate that rates have been falling. For example, interest rates on new fixed rate mortgages (excluding renegotiations) have fallen from 4.11% in December 2014 to 2.64% in September of this year.

Interest rate pricing in the mortgage market, and generally, is affected by a wide range of factors including product features, e.g. cash back, the operational costs of the lender, capital requirements, credit risk, the level of non-performing loans (NPLs) and competition. As a result of the previous crash, credit risk levels are still elevated in Ireland as is the level of historical NPLS and these feed into higher capital requirements for Irish banks versus the requirements elsewhere in Europe. A reduction in the level of competition in any market may affect interest rate pricing but any estimation of this, particularly in isolation, would be speculation. Furthermore, as noted above, interest rates in the Irish mortgage market have declined over the last 6 years despite lower levels of competition compared to other jurisdictions.

Mortgage Data

Questions (234)

Peadar Tóibín

Question:

234. Deputy Peadar Tóibín asked the Minister for Finance the research his Department is undertaking on the level of sales of property by receivers that are the subject of impaired loans; the analysis that is being carried out by his Department on whether receivers are fulfilling their duties to borrowers in terms of achieving the best price for their properties; and if the research and analysis will be made available. [40259/20]

Written answers

Minister for Finance

Receivership is one of the remedies available to creditors in the case of a default on a credit contract. A receiver may be appointed under the terms of a private contract itself, or by a court or under certain statutory provisions such as the Companies Acts or the Land and Conveyancing Law Reform Acts. Under those statutory provisions and also under more general contract law, there are certain duties on receivers including, as provided for in section 103 of the Land and Conveyancing Law Reform Act, when exercising the power of sale to ensure, as far as is reasonably practicable, that the mortgaged property is sold at the best price reasonably obtainable.

The Central Bank, as part of its Residential Mortgage Arrears and Repossessions Statistics statistical series, publishes certain data on the number of receivers appointed in respect of residential buy to let mortgages. The most recent data, which is in respect of the second quarter of 2020, indicates that rent receivers were appointed to 57 buy to let mortgage residential mortgage accounts, bringing the stock of accounts with rent receivers appointed to 5,035 (https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/residential-mortgage-arrears-and-repossession-statistics-june-2020.pdf?sfvrsn=6). However, neither my Department nor the Central Bank has a role in relation to the regulation or operation of receivers.

However, it should also be noted that, in relation to the wider consumer protection perspective, the Consumer Protection Code 2012 sets out an arrears handling framework that applies to mortgage loans on non-primary residence properties (e.g. buy to let/investment properties) where such properties are not the only property owned by the borrower in the State (where a buy to let or investment property is the only property owned by a borrower in the State, then the protections of the Code of Conduct on Mortgage Arrears 2013 will instead apply).

The Consumer Protection Code provides a suite of protections that regulated firms must comply with including:

- requirement for written procedures for arrears handling;

- extensive provision of information and communication requirements; and

- requirements regarding revised repayment arrangements.

The Code also specifies that a regulated entity must seek to agree an approach that will assist the consumer in resolving their arrears situation, and the overarching principle that a regulated entity must act honestly, fairly and professionally in the best interests of its customers, also applies.

Help-To-Buy Scheme

Questions (235)

Michael Collins

Question:

235. Deputy Michael Collins asked the Minister for Finance if he will address a matter in relation to the help-to-buy scheme (details supplied); and if he will make a statement on the matter. [40267/20]

Written answers

Minister for Finance

The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme.

The Government announced a temporary enhancement to the existing HTB scheme for the remainder of 2020 as part of the July Stimulus plan. The legislation to give effect to this increase has been outlined in the Financial Provisions (Covid-19) (No.2) Bill 2020 and was signed into law on 1 August 2020.

In summary, the legislation introduced as part of the July Stimulus, provides that where applicants enter into a contract for the purchase of a new house or apartment, or make the first draw down of the mortgage in the case of a self-build property, during the period from 23 July 2020 to 31 December 2020, they will be eligible for increased relief under the HTB scheme to the lesser of:

- €30,000 (increased from €20,000),

- 10 per cent (increased from 5 per cent) of either the purchase price of the new home or, in the case of self builds, the completion value of the property, or,

- the amount of Income Tax and DIRT paid in the four years prior to making the application.

From the information provided, the first drawdown of applicant’s mortgage was made prior to 23 July 2020. Unfortunately, this was not within the specified period 23 July 2020 to 31 December 2020 to avail of the temporary enhanced HTB relief. The original HTB relief is still available subject to satisfying the conditions of the scheme. As with all time bound reliefs, there will always be those who just miss out on qualification. I do not intend to extend the parameters of scheme any further as it would become less targeted and more costly.

I am advised by Revenue that it has published Tax and Duty Manual 15-01-46 on its website, which contains detailed guidance on all matters relating to HTB, including the temporary enhanced HTB scheme.

Credit Unions

Questions (236)

Carol Nolan

Question:

236. Deputy Carol Nolan asked the Minister for Finance if his attention has been drawn to concerns following changes to credit union lodgment limits; if he will address concerns (details supplied); and if he will make a statement on the matter. [40275/20]

Written answers

Minister for Finance

The Central Bank has advised me that it cannot comment on individual credit union cases. However, the Central Bank has informed me that credit unions have experienced savings inflows over recent years, which have outpaced loan demand from their members. The savings which a credit union does not lend to its members must be invested while ensuring that such investments do not result in undue risk. At the same time, due to low/negative investment returns, reflective of the current low interest rate environment, credit unions may decide to limit the amount of savings to be invested.

Accordingly, individual credit unions may take business decisions to limit the amount of savings they accept from their members. Such limits are separate from the savings limit set out in Central Bank Regulations.

The Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the 2016 Regulations) set an individual savings limit of €100,000 that applies on a per member basis. Individual credit unions could apply to the Central Bank to retain individual members’ savings in excess of €100,000, which were held at commencement of the 2016 Regulations. In addition, on an ongoing basis, credit unions with total assets in excess of €100 million can apply to the Central Bank for approval to increase individual member savings in excess of €100,000. The Central Bank undertook a review of the continued appropriateness of the €100,000 individual member’s savings limit during 2020 which concluded that the limit remains appropriate.

Separate to the limits set out by the Central Bank in the 2016 Regulations, individual credit unions may decide to set individual savings limits/caps, which are below the €100,000 limit contained in the 2016 Regulations, in order to take account of their own specific business requirements and strategy.

It is a commercial decision for any individual credit union to put in place any limits on the level of member savings or to decide to return some member savings where they are of the view that this will best support the ongoing prudent operation of their credit union for their members.