Written Answers Nos. 180-199
183. Deputy Alan Dillon asked the Minister for Finance his plans to address the issue of life assurance providers delaying coverage to those with a 100% loading due to the Covid-19 pandemic; and if he will make a statement on the matter. [41366/20]
View answer200. Deputy Gary Gannon asked the Minister for Finance if his attention has been drawn to the case of persons with underlying health conditions who are currently struggling to obtain life assurance due to the Covid-19 pandemic; and if he will make a statement on the matter. [42135/20]
View answerI propose to take Questions Nos. 183 and 200 together.
While I have an appreciation of the difficulties individuals may find themselves in as a result of the COVID-19 pandemic, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. 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 companies as to how they price their policies or what terms and conditions apply.
It is my understanding that insurers use a combination of rating factors in making their individual decisions on whether to offer life insurance and what terms to apply. These can include age; health; family medical history; occupation; and lifestyle. In addition, these may be determined or linked to the policy duration. In the case of mortgage protection policies, these tend to be over the lifetime of the repayment schedule. In addition, my understanding is that different insurers do not use the same combination of rating factors. Accordingly, prices and availability of cover varies across the market, and will be priced in accordance with firms’ prior claims experience.
My officials contacted Insurance Ireland, the representative body for such providers on this issue. It stated that while most customers are still able to get life; critical illness; or mortgage protection insurance at this challenging time it is aware of a small number of cases where a final decision on some applications is being postponed for a period of time where applicants have an underlying health condition. However, it stated that while unaware of any cases where life cover has been denied, such policies are assessed on a case-by-case basis and that underlying health conditions, will be taken into account by the underwriters, as was the case pre-COVID-19. Insurance Ireland further noted that it understands that mortgage protection is not a universal requirement by banks, who in practice apply the following exceptions to holding life cover when an applicant applies for a mortgage:
- The applicant already has sufficient life cover.
- The applicant is over age 50.
- The mortgage is not on the applicant’s principal private residence.
- The applicant cannot get insurance, or only at a much higher rate than normal.
Notwithstanding this, the Deputy will be aware that both I and Minister of State Fleming have consistently and publicly stated that in the context of COVID-19 we expect insurance firms to treat their customers fairly, honestly, and in accordance with the Central Bank’s Consumer Protection Code. The Government will continue to work to protect customers during and after the COVID-19 crisis, and engage with the insurance industry in relation to how it responds to the needs of its customers. This commitment is included in the Programme for Government.
Finally, where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO 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 info@fspo.ie or by telephone at 01-567-7000.
184. Deputy Imelda Munster asked the Minister for Finance his plans to introduce laundered diesel testing as a core component of the national car test and commercial vehicle road tests; and if he will make a statement on the matter. [41376/20]
View answerI am advised by Revenue that it does not have any plans to introduce laundered diesel testing as part of the NCT and DOE road tests.
Revenue takes a multifaceted approach to tackling the misuse of fuel. Its compliance activities in this area include roadside sampling of private and commercial vehicles at checkpoints combined with a risk based targeted sampling programme based on enhanced supply chain reporting for suppliers and retailers. In addition, Revenue and the UK Revenue and Customs undertook a joint initiative to introduce a new marker for use in marked fuels, which came into operation in April 2015.
I am advised by Revenue that it conducted a random National Sampling Programme in the years 2016 to 2019 to assess the extent of fuel laundering. The 2019 programme involved samples being taken from over 200 randomly selected licenced fuel outlets and transport sector trades. Evidence of misuse of fuel was discovered in only 3 cases.
The results represent confirmation of the effectiveness of the various measures introduced by Revenue in recent years to enhance compliance in the fuel trade and among users of diesel. The random sampling programme results do not signify the complete elimination of the illicit trade in fuel. However, they do demonstrate that systematic selling of illicit fuel through retail outlets and its use in the transport sector is negligible.
Despite this success, I am assured by Revenue that combating such criminality continues to be a priority. Revenue and An Garda Síochána collaborate closely in acting against cross-border fuel crime and also cooperate with their counterparts in Northern Ireland under the framework of the North-South Joint Agency Task Force. This cooperation plays a key role in targeting the organised crime groups who operate across jurisdictions and are responsible for much of this criminality.
186. Deputy Peadar Tóibín asked the Minister for Finance the revenue raised by taxes on advertisements on social media platforms (details supplied). [41494/20]
View answerI would inform the Deputy that revenues from individual business lines is not identifiable to the Revenue Commissioners from tax returns. Furthermore, it is not my practice to comment on the tax affairs of individual taxpayers.
187. Deputy Fergus O'Dowd asked the Minister for Finance if concerns raised by a person (details supplied) in respect of on-track bookmakers access to the Covid restrictions support scheme will receive a response; and if he will make a statement on the matter. [41497/20]
View answerThe 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 support 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. It is intended to enable businesses to meet normal fixed costs associated with their business premises such as rent, insurance, utilities and so on, during the period which they are subject to such restrictions.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. For the purposes of CRSS, a qualifying “business premises” is a building or other similar physical structure in which a business activity is ordinarily carried on.
An on-course bookmaker operating from a mobile premises or a premises not permanently fixed in place, such as a stand at a racecourse, is not operating from a business premises for the purposes of CRSS and therefore is not eligible to make a claim under the scheme.
The CRSS is just one element of the Government’s supports. An on-course bookmaker may be entitled to alternative supports under various measures put in place by the Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible to warehouse 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.
188. Deputy Eoin Ó Broin asked the Minister for Finance the status of and position regarding the operations of National Asset Residential Property Services, NARPS, including the number of residential properties currently held by the vehicle; the number of same leased to social housing providers; the length of the lease terms; the annual cost of these leases to the State; and the future plans for NARPS including if his Department or NAMA are looking at either selling NARPS or expanding the activities of same to further develop social or affordable housing into the future. [41524/20]
View answerAs the Deputy may be aware, National Asset Residential Property Services DAC (NARPS) is a NAMA subsidiary which operates by purchasing suitable residential units directly from NAMA debtors and receivers and leasing them on to Local Authorities or Approved Housing bodies for social housing use.
I am advised by NAMA that NARPS currently owns 1,372 properties, all of which are leased directly to Approved Housing Bodies or Local Authorities. The properties are located across 16 counties in Ireland with 1,335 properties leased to Approved Housing Bodies and the remaining 37 properties leased to Local Authorities. A breakdown of the lessees is included below:
|
Properties |
Nos. |
|
Tuath Housing |
539 |
|
Cluid Housing |
202 |
|
Co-Operative Housing Ireland |
239 |
|
North and East Housing |
112 |
|
Circle VHA |
78 |
|
Oaklee Housing |
53 |
|
Respond! Housing |
52 |
|
Cork County Council |
31 |
|
Focus Ireland |
21 |
|
HAIL |
19 |
|
Clanmill Ireland |
8 |
|
Carlow VHA |
8 |
|
Clare County Council |
6 |
|
Steer Housing Association |
4 |
|
|
1,372 |
I am advised that all NARPS properties are subject to a standard lease term of 20 years and 9 months. The rent paid under the lease is agreed through consultation between NAMA, the Housing Agency and the local authority before formal approval by Department of Housing and reflects a prescribed discount to market rent. Rent is fixed for the first six years of the lease term.
NARPS lease rental income for each financial year is available in NARPS published annual accounts and is set out below for information:
Lease Rental Income
|
Year |
€'000 |
|
2013 |
54 |
|
2014 |
768 |
|
2015 |
3,626 |
|
2016 |
6,461 |
|
2017 |
10,466 |
|
2018 |
11,651 |
|
2019 |
12,380 |
As regards the future plans for NARPS, the Deputy will note the recommendation regarding NARPS contained in my Section 227 Review of NAMA, published in July 2019. In recognition of the important role of NARPS in terms of social housing provision, I recommended that NAMA retains ownership of NARPS until it is in a position to be transferred to another State entity as part of NAMA’s terminal surplus of €4 billion in due course. Officials are examining these options in the context of NAMA's winddown.
189. Deputy Eoin Ó Broin asked the Minister for Finance the estimated tax revenue forgone due to benefit-in-kind taxes applied to company electric vehicles. [41530/20]
View answerI am advised by Revenue that, as employers are not obliged to provide details in relation to the provision of this non-taxable benefit in their tax returns, Revenue has no information on which to estimate the tax revenue forgone as requested by the Deputy.
192. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [41784/20]
View answerUnder the Ireland – Northern Ireland Protocol, there will be no change after 1 January to the existing VAT treatment of a supply of goods by a VAT registered business in Northern Ireland to a customer in the State. In relation to Customs and in accordance with the Protocol there will be no customs declarations, tariffs or quantitative restrictions and no security protocol.
193. Deputy Bernard J. Durkan asked the Minister for Finance when a company (details supplied) will be registered as part of help to buy scheme; and if he will make a statement on the matter. [41799/20]
View answerI am advised by Revenue that all issues relating to matter raised by the Deputy have been resolved. Revenue has also confirmed that the business is now registered as a Qualifying Contractor for the Help to Buy (HTB) Incentive Scheme.
194. Deputy Noel Grealish asked the Minister for Finance the supports including financial grants available to small and medium sized Irish businesses to help them grow their business online including assistance to purchase equipment and training assistance to upskill staff; the supports that could be availed of by local media outlets such as newspapers and radio stations to boost their online sales and support employment in the industry; and if he will make a statement on the matter. [41841/20]
View answerMy Department has no responsibility or remit for issuing financial grants to small and medium sized Irish businesses on an ongoing basis. I understand this matter falls to my ministerial colleague in the Department of Enterprise Trade and Employment, who is also responding to a duplicate of this question.
However, my Department in conjunction with Revenue Commissioners introduced the Covid Restrictions Support Scheme (CRSS) as 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 support 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. It is intended to enable businesses to meet normal fixed costs associated with their business premises such as rent, insurance, utilities and so on, during the period which they are subject to such restrictions.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. For the purposes of CRSS, a qualifying “business premises” is a building or other similar physical structure in which a business activity is ordinarily carried on.
The CRSS is just one part of the Government’s supports dealing with the effects of the Covid-19 pandemic. Businesses may also be entitled to alternative supports under various measures put in place by the Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). Businesses may also be eligible to warehouse 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.
195. Deputy Catherine Murphy asked the Minister for Finance if his attention has been drawn to instances in which banks may be advising incorrectly to customers (details supplied) such as small business owners and farmers on whether their loans come under the Central Bank's tracker mortgage examination. [41913/20]
View answerThe Central Bank has advised that the Tracker Mortgage Examination required all lenders to review all mortgage accounts in respect of both private dwelling houses and buy to let properties (but it did not include non-home commercial mortgages) up to the end of 2015,
- that originated on tracker interest rates;
- that had tracker interest rates applied at any stage during the term of the underlying mortgage agreements; and/or
- where the underlying mortgage agreements provided for contractual rights to or options for tracker interest rates at any stage during the term of the agreements.
All tracker mortgage accounts that fall within this scope are covered by the Examination. The Examination involved the initial review of more than two million mortgage accounts by lenders to identify the number of in-scope accounts.
The Examination required lenders to conduct a complete review of their mortgage loan books to assess compliance with both contractual and regulatory requirements relating to tracker mortgages. These regulatory requirements include all relevant statutory codes including the Code of Conduct on Mortgage Arrears (CCMA) which provides that protections of the CCMA, including those protections relating to the removal of a tracker rate, apply to a mortgage loan of a borrower which is secured by his/her primary residence. The scope of the Examination was designed to ensure that such consumer protections were correctly applied to consumers on their family property or personal investments type mortgages.
197. Deputy Cathal Crowe asked the Minister for Finance if consideration will be given to lowering the spending threshold for availing of the retail export scheme to €50 in order to make the scheme more attractive to tourists from other countries; and if he will make a statement on the matter. [42021/20]
View answerThe Deputy will be aware that this question was the subject of extensive debate in the Dail and Seanad debates on the Withdrawal of United Kingdom from the European Union (Consequential Provisions) Bill 2020. In the course of the committee stage in the Dáil, I introduced an amendment reducing the threshold from €175, in the Bill as published, to €75 in recognition of challenges facing the tourism sector.
198. Deputy Ged Nash asked the Minister for Finance his views on reports that a State-owned bank plans to buy-back a brokerage and wealth management firm (details supplied) at a premium price; if he has been formally informed of these talks by the bank; if so, the date on which he was informed; if he has the powers to prevent any proposed purchase under the Relationship Framework Agreement; and if he will make a statement on the matter. [42029/20]
View answerAs the Deputy is aware AIB is a bank which is listed on the Irish Stock Exchange and the London Stock Exchange and it would not be appropriate for me as Minister for Finance to comment on any media speculation.
199. Deputy Ged Nash asked the Minister for Finance if a commitment will be given to retaining the effective ban on bank bonuses for the lifetime of the Government in view of the current Covid-19 crisis; and if he will make a statement on the matter. [42030/20]
View answerThe Deputy will be aware that Government policy on banking remuneration has remained unchanged since the financial crisis. Extensive restrictions are in place and these are not simply confined to a small number of senior bankers whose pay is restricted by the €500,000 pay cap. These affect circa 23,000 workers across the three banks in which the State has a shareholding. The policy dictates that variable pay including bonuses and any other fringe benefits including the likes of health insurance and childcare cannot be paid to any staff members from the most junior lowest paid staff to the most senior ranks.
As a result the previous Government undertook to carry out a review of Government bank remuneration policy to determine if it remained fit for purpose. My department worked with the specialist advisory division of Korn Ferry to undertake this review. Stakeholders engaged with included the major institutional investors in the banks, proxy advisory firms, the Financial Services Union (FSU), the chairs of the remuneration committee in each of the banks, the Central Bank of Ireland and representatives of the Single Supervisory Mechanism (SSM) in Frankfurt.
As I have indicated previously I have read the report. It is a complex and far ranging piece of work and it has most certainly informed my thinking on the issue.
I acknowledge that there is a very different European regulatory environment in place now which will help prevent the return to some of the excesses of the boom years including the EU Capital Requirements Directive (CRD IV) and the Remuneration Guidelines of the European Banking Authority.
Furthermore the powers of the Central Bank were significantly enhanced by the Central Bank (Supervision and Enforcement) Act 2013, particularly powers to take action against wrongdoing by financial services providers and to strengthen the ability of the Central Bank to take action against individuals.
However I believe the issue of bank remuneration is inextricably linked to further restoring public confidence in the culture and accountability of our banks and the forthcoming SEAR regime and the Central Bank (Amendment) Bill more generally, will provide an effective framework and will help to reassure the public that meaningful cultural change is underway in the banking sector.
