Written Answers Nos. 61-77
61. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the performance of the economy compares favourably or otherwise with other countries in the EU, within the eurozone and without; and if he will make a statement on the matter. [10877/21]
View answerThe outbreak of the Covid-19 pandemic last year and the restrictions introduced to suppress the virus led to an unprecedented contraction of global economic activity. Lockdown restrictions saw the Irish economy contract sharply by just over 3 per cent quarter-on-quarter in Q2, followed by a recovery of 11 per cent in Q3 as restrictions eased. Ireland’s quarterly GDP fall in Q2 was significantly less of a decline than that experienced by many EU Member States.
The European Commission recently estimated Irish GDP to have grown by 3 per cent in 2020. This compares to an estimated contraction in EU and euro area GDP of -6.3 and almost -7 per cent, respectively, with Ireland the only Member State with positive growth. However, Ireland’s GDP has been boosted by a surge in exports of pharmaceuticals, and this masks a very sharp hit to the domestic economy. In contrast, modified domestic demand declined by -6.3 per cent in the first three quarters of last year, figures which are more in line with the impact in other EU countries.
More recently, the pandemic has tightened its grip on Ireland and this has continued to negatively affect the domestic economy. As of 22 February, approximately 1 million people were in receipt of some category of state income assistance, which is still below the peak of 1.2 million on 5 May 2020. This is by no means out of line with the experience of other European countries. The resurgence in infections since the autumn, along with the emergence of new, more contagious variants of the coronavirus, has seen the reintroduction of additional restrictions across the EU. On the other hand, Ireland and other EU Member States are also likely to see the beginnings of a recovery in the second half of the year as vaccine rollout reaches critical targets. As a result, the European Commission are forecasting both EU and euro area GDP to grow by almost 4 per cent in 2021.
My Department will publish updated macroeconomic forecasts with the Stability Programme Update in April.
62. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which Ireland has been able to avail of any opportunities in Europe arising from Brexit; and if he will make a statement on the matter. [10878/21]
View answerIreland regrets the UK’s decision to leave the EU, however we have always respected it. As a result of Brexit, many aspects of our relationship with our nearest neighbour have changed fundamentally as we no longer share EU membership.
The net impact of Brexit on the policy areas within my remit is negative. The principal negative impact arises from the trade shock, mitigated somewhat by a positive Foreign Direct Investment impact resulting from a redirection to Ireland of investment from firms looking to relocate within the EU Single Market. Ireland’s international financial services sector is expected to become broader and more diverse as a result of such relocations.
In the face of Brexit, the Government has been taking steps to build up the resilience of the economy by developing and expanding our economic and trade relationships, both with our EU partners and with other overseas markets. The Mission Network abroad, in partnership with the State Agencies, is playing an important role in terms of public and economic diplomacy.
While we no longer share EU membership with the UK, Ireland continues to share good, strong and enduring relationships with the other members of the EU27. This was most visibly demonstrated during the EU-UK negotiations on the future relationship, in respect of the Northern Ireland Protocol and work to avoid a hard border on the island of Ireland; as well as in the recent publication of the Commission’s proposal on the Brexit Adjustment Reserve, where Ireland is set to be the largest recipient, reflecting our close economic and trade relationship with the UK.
We look forward to continuing to work with our EU partners across the full range of policy areas, as well as working with like-minded Member States as we seek to promote Ireland’s policy priorities. We will also continue to work closely with our EU partners as we navigate the common opportunities and challenges before us, such as ensuring a shared and even economic recovery as we overcome the Covid-19 pandemic.
63. Deputy Bernard J. Durkan asked the Minister for Finance if the economy has been able to withstand the impact of Brexit to date; if particular issues have arisen that might require attention; and if he will make a statement on the matter. [10879/21]
View answerThe new Trade and Cooperation Agreement between the EU and UK was a positive outcome of the Brexit negotiations. However, the new agreement still represents a break from previously existing arrangements, and thus a permanent shock to the Irish economy. Therefore, Brexit will still have a negative economic impact on the Irish economy and living standards compared to the previous relationship.
For Irish exporters, the Trade and Cooperation Agreement is positive, compared to a no-deal scenario, as it provides for zero-tariffs and zero-quota trade for qualifying EU and UK goods. However, it is important to note that the agreement does not completely mitigate against trade frictions in the form of non-tariff barriers, such as customs checks and procedures. So, while tariffs and quotas have been avoided for qualifying goods, non-tariff measures or non-tariff barriers represent a change in trading relations and an increased cost to trade. In addition, disturbances to retail and distribution supply chains could have a direct impact on Irish consumers through reduced competition and higher prices.
The Government has put in place extensive financial supports for sectors over recent years to assist businesses to prepare for and mitigate the impacts of Brexit, including various financial, advisory, and up-skilling supports. The Government has also invested heavily in port infrastructure, as well as working closely with businesses to navigate the new customs arrangements.
In the weeks since the end of the transition period on 31 December 2020, a level of trade friction has been evident. Given the phased basis of the new import controls which must be applied by the UK, it will take time for these to feed through to overall exporting activity, and to assess any associated economic impact.
64. Deputy Bernard J. Durkan asked the Minister for Finance if Ireland’s peripheral geographic location is likely to be borne in mind at European level when consideration is being given to assistance that might become available for countries most severely hit by the negative impact of Brexit; and if he will make a statement on the matter. [10881/21]
View answerAs the Deputy may be aware, in July 2020, as part of the 2021-2027 Multi-annual Financial Framework negotiations, leaders agreed on a €5 billion Brexit Adjustment Reserve (BAR) to counter unforeseen and adverse consequences in Member States and sectors that are worst affected by the UK’s withdrawal from the EU. Since July 2020, Ireland has taken every opportunity to make its position on the BAR known to the European Commission and to demonstrate the impact Brexit has on us, as the most affected Member State.
In December 2020, the European Commission published its detailed proposal for the BAR, including an allocation key, setting out how the instrument would work and how much should be allocated to each Member State. Under the Commission’s proposal, €4 billion of the total €5 billion instrument will be disbursed in 2021 using an allocation method based on the importance of trade in goods and services with the UK and the importance of fisheries in the UK waters. Under the initial €4 billion tranche of funds, Ireland is set to receive approximately €1 billion (€991 million in 2018 prices, or €1052 million when adjusted for inflation). This proposed allocation is significantly higher than any other Member State. Importantly, the instrument takes into account the high level of trade that Ireland has with the UK, as a result of our close geographical location to the UK. Other Member States geographically and economically close to the UK also see this relationship reflected in their proposed allocations.
The Commission's proposal for the BAR is currently being negotiated at Council level by the Member States and then with the European Parliament. Therefore, the above-described proposal might not be exactly reflected in the final agreement. My Department, along with the Department of Public Expenditure and Reform, Department of Foreign Affairs and Department of the Taoiseach will continue to work hard to ensure that the final BAR outcome reflects the fact that Brexit has a greater impact on Ireland that on any other Member State.
65. Deputy Bernard J. Durkan asked the Minister for Finance if he remains assured of the future for Ireland’s 12.5% corporation profits tax; and if he will make a statement on the matter. [10882/21]
View answerAt 12.5%, Ireland has one of the most competitive headline corporation tax rates in the OECD. This rate is applied to a broad base – a policy which is endorsed by the likes of the OECD as it is good for growth in our economy. Our competitive corporation tax system has been an important part of our industrial policy since the 1950s and has attracted real and substantive operations to Ireland since then.
The recently published Update to the Corporation Tax Roadmap re-iterated Ireland’s commitment to maintaining certainty in our corporation tax system and the Government will continue to be proactive in ensuring that Ireland’s corporation tax regime will remain competitive, fair and sustainable with the 12.5% rate at its core.
To complement our competitive tax rate, we will also ensure that we continue to play to our traditional strengths, including a forward-looking business environment; a whole-of-Government approach, to ensure that we remain agile and competitive; and, importantly, recognising the value of an educated and dynamic workforce that has consistently delivered innovation and profitability for businesses over many decades.
66. Deputy Bernard J. Durkan asked the Minister for Finance if particular issues arise for the euro from the emergency of bitcoin; and if he will make a statement on the matter. [10883/21]
View answerContinuous developments in distributed ledger and blockchain technologies, like Bitcoin and stablecoins, are being considered at EU level both for the risks that may present, but also the opportunities.
Bitcoin is almost 12 years old. The recent interest in this cryptocurrency, and its meteoric and highly volatile increase in value, may have been fuelled by a combination of factors:
- Increased digitalisation and more time spent online – as a consequence of COVID-19 restrictions on business and personal lifestyles.
- Declining cash usage – the pandemic has boosted not only the use of credit and debit cards, but contactless payments.
- Investors seeking new avenues, asset classes and transactions to earn financial yields.
This is not a new phenomenon that has emerged recently. Indeed, the European Central Bank has been analysing the crypto-asset phenomenon (not only Bitcoin) with a view to identifying and monitoring potential implications for monetary policy and the risks that crypto-assets may pose to the smooth functioning of market infrastructures and payments, as well as for the stability of the Euro financial system as a whole. To that end, it established in 2018 the Internal Crypto-Assets Task Force with a mandate to deepen the analysis of crypto-assets.
Furthermore, in 2020, the European Commission and the European Central Bank announced that they were pursuing efforts towards ensuring a strong and vibrant European digital finance sector and a well-integrated payments sector to respond to new payment needs in Europe. The Digital Finance package, announced in September 2020, includes a draft regulation proposal for Markets in Crypto Assets. This proposal intends to regulate crypto-assets that may have a “payment” purpose and adequate supervision and consumer protection measures are included in this regulatory proposal.
Finally, in January 2021, the ECB and the EU Commission announced that they are collaborating in exploring the possibility of issuing a digital euro, as a complement to cash and payment solutions supplied by the private sector. The project will involve a review at technical level of a broad range of policy, legal and technical questions emerging from a possible introduction of a digital euro.
67. Deputy Bernard J. Durkan asked the Minister for Finance if bitcoin is being gradually recognised globally as a currency; and if he will make a statement on the matter. [10884/21]
View answerThe popularity of Bitcoin has been increasing rapidly in recent months. In February 2020, one Bitcoin could be purchased for $10,000. It is currently priced at c. $47,000, having reached a historical record price of c $57,500 on 21 February 2021. In other words, this represents a change in value of -2% from a few days ago and +465.2% from one year ago. In contrast, the Euro vs USD exchange has moved by little over 0.10% over the same year.
Assuming that the question as to whether Bitcoin is gradually being recognised as a “currency” is meant to infer that Bitcoin may be accepted as “money”, I would like to recap on the three most basic functions of money:
1. Medium of exchange. Money can be used for buying and selling goods and services.
2. Unit of account: Money is the common standard for measuring relative worth of goods and service.
3. Store of value: Money can be saved and used for future purchases with limited risk to its value depreciating
4. These fluctuations in the value of Bitcoin, as evidenced in recent days and months, make its use and applicability as a trusted means of payment rather unreliable and inadequate. In other words, its volatility makes it hard to be used as a medium of exchange. There are other considerations as to why Bitcoin may not be accepted as a “currency”. For example, as a means of payment, it is slow when compared to credit card payment transactions or online SEPA payments. VISA for example, can process +1700 transactions per second. In contrast, the Bitcoin blockchain can process 3,000 transactions every 10 minutes.
5. Bitcoin has been labelled a currency, a commodity and a new investment asset class. What may be happening is that Bitcoin is gradually being adopted not so much as a “currency” or means of payment, but as an investment. Buyers of Bitcoin tend to hold on to their purchases with the expectation that this “digital gold” or “digital commodity” will increase in value. This would mean that Bitcoin may be gradually recognised as a commodity, not a currency.
6. It can be said that Covid-19 has had an effect in the wider acceptance of Bitcoin as a commodity. First, the pandemic has accelerated the move to transacting and living in a digital world: what might have taken 10 years (in technology adoption terms) has been achieved in 10 months. People were forced to drop the use of cash and become proficient in online payments. As people became more comfortable with making financial transactions online, access to cryptocurrencies (not only Bitcoin) have been made more accessible to the public. Bitcoin can be traded 24/7, unlike other traditional stocks. This availability, combined with the allure of its increasing value, may have attracted more investors into Bitcoin.
7. Its scarcity cannot be ignored, however. The Bitcoin protocol was written with a maximum supply of 21,000,000 BTC coins. There are already 18,623,718 BTC coins mined, or in circulation. As the reward for mining Bitcoin halves every 210,000 blocks, so does the reward, which makes the current Bitcoin in circulation increase in value. This programmed scarcity is why Bitcoin has been increasingly called “digital gold”.
8. In fact, there are financial instruments based on Bitcoin available to purchase: exchange-traded funds, commonly known as an ETFs, a type of investment fund that tracks the price of an underlying asset, such as gold, oil, an index, or a basket of stocks. It is traded on exchanges in the same way as stocks.
9. This would point to the fact that Bitcoin may be recognised globally more as a commodity than a currency.
10. Finally, considering the current negative interest rates markets, it is possible that many investors are purchasing Bitcoin as an alternative avenue to earn investment returns. Recently, some financial institutions have publicly announced significant investments in Bitcoin, as a means to diversify the risk of their investment portfolios. While purchases of Bitcoin seem more “main stream”, its use a payment mechanism (and thus its use as a fiat currency) is rare.
70. Deputy Bernard J. Durkan asked the Minister for Finance the value of properties currently held by NAMA; the value of all such property disposed of to date; and if he will make a statement on the matter. [10887/21]
View answerI am advised that NAMA does not typically own property, rather NAMA acquired a portfolio of loans for which the properties act as security. As set out in NAMA’s most recent Section 55 Quarterly Report and Accounts, NAMA’s assets at 30 September 2020 included i) loans (primarily secured by properties) measured at fair value of €1,039m; and ii) trading properties and investments in equity and properties of €469m. The majority of properties in NAMA’s remaining secured portfolio comprise land and development assets, much of which is intended for residential development by NAMA’s debtors and receivers.
At acquisition, the properties securing NAMA’s loans were valued at €32 billion. From inception up to 30 September 2020, NAMA generated cash of €39.3bn from the disposal of these properties and loans. An additional €6.4bn was generated in non-disposal income, including rental income from secured properties.
NAMA’s expected lifetime contribution to the Exchequer, between the projected surplus of €4 billion and projected total tax payments of €400m, is €4.4 billion. €2 billion of this projected surplus was transferred to the Exchequer last year.
71. Deputy Bernard J. Durkan asked the Minister for Finance if consideration will be given to the utilisation of NAMA as a means of solving the housing crisis; and if he will make a statement on the matter. [10888/21]
View answerNAMA was established with a very specific legal mandate, which was approved by the European Commission in 2010, to deal expeditiously with its acquired loan portfolio and to extract best value from that portfolio. NAMA has been successful in achieving this mandate and has now entered into the final phase of this work.
In relation to the delivery of residential housing, it is important to note that NAMA does not build houses itself, rather it works with its existing debtors and receivers to agree development plans, secure/alter planning permission and fund the debtor's delivery of units. Through these efforts NAMA is helping to increase the value of the security supporting the loans of its debtors and so improving NAMA's ultimate recovery on these loans.
NAMA has a well-established overriding commercial mandate to recoup the best return for the Irish taxpayer and this has not changed and has been approved by the European Commission, therefore I have no intention utilising NAMA in a manner outside this commercial mandate. However, that does not mean that NAMA does not carry out objectives, such as facilitating the delivery of residential and social housing, which are entirely consistent with its existing purpose and objectives.
NAMA has an objective of funding or facilitating the delivery of 20,000 residential units, subject to commercial viability, across NAMA-secured residential sites in Ireland. To end 2020, new residential units directly funded or facilitated by NAMA was 12,450 units; and new residential units delivered on land previously secured to NAMA for which NAMA funded planning permission, enabling works, legal or holding costs was 6,550 units.
Looking at NAMA’s residential pipeline at end-2020, 1,500 units were under construction or had funding approved for construction on NAMA-secured sites and 4,900 units had been granted planning permission and planning applications for a further 7,750 units had been lodged or were being prepared.
Up to end 2020, NAMA had identified 7,094 residential units as potentially suitable for social housing. Demand was confirmed by local authorities for 2,770 units, of which 2,614 (94%) had been delivered or contracted by NAMA for social housing purposes at the end-September 2020. This is in excess of NAMA’s social housing delivery target of 2,000.
Under State aid rules a commitment has been provided to the European Commission that NAMA’s operations shall continue for a limited period to the end of December 2025 at the latest and that NAMA shall submit to the Minister for Finance before the end of 2021 a detailed wind-down plan for its ultimate dissolution within this timeframe.
72. Deputy Bernard J. Durkan asked the Minister for Finance the way consumers in the economy might gain access to interest rates applicable throughout Europe, notwithstanding the requirement that banks here must hold increased financial reserves but noting that ongoing higher interest charges also makes it more difficult for Irish lenders to accommodate their borrowers; and if he will make a statement on the matter. [10889/21]
View answerI am aware that the general level of lending interest rates in Ireland are higher than is the case in many other European countries, though it should also be noted that recent trends indicate that certain mortgage rates have been falling in Ireland. For example, the interest rates on new fixed rate mortgages (excluding renegotiations) have fallen from 4.11% in December 2014 to 2.67% in December 2020.
However, Irish mortgage and other loans can have different characteristics from those offered in other countries. For example, many Irish banks include incentives such as cash back offers, which reduce the effective Irish mortgage interest rate. Also Irish mortgages are also generally not subject to upfront fees which are typically charged by banks in some other EU jurisdictions.
Nevertheless, there are a number of important factors which will likely influence the interest rates charged on Irish mortgages. These include operational costs, certain structural factors as referenced above (such as incentives offered), as well as the fact that pricing will reflect:
- credit risk and capital requirements which in Ireland are elevated due to historical loss experience;
- the level of non-performing loans which is higher in Ireland relative to other European banks (as provisioning and capital requirements are higher for these loans to reflect their higher risk and this in turn results in higher credit and capital costs for the Irish banks);
- higher cost-to-income: cost inefficiencies have been a characteristic of the Irish banking sector in recent years;
- there are lower levels of competition in the Irish banking market compared to other jurisdictions.
The Central Bank has a range of measures to protect consumers who are taking out a mortgage. The consumer protection framework requires lenders to be 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; through protections at the initial marketing/advertising stage, in assessing the affordability and suitability of the mortgage and at a time when borrowers may find themselves in financial difficulties. In particular, the Central Bank introduced of a number of increased protections for variable rate mortgage holders which came into effect in February 2017. The enhanced measures, which are provided for in an Addendum to the Consumer Protection Code 2012, require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an increase. The measures also improve the level of information required to be provided to borrowers on variable rates about other mortgage products their lender provides which could provide savings for the borrower and signpost the borrower to the CCPC’s mortgage switching tool.
The Central Bank also introduced additional changes to the Consumer Protection Code in January 2019 to help consumers make savings on their mortgage repayments, provide additional protections to consumers who are eligible to switch, and facilitate mortgage switching through enhancing the transparency of the mortgage framework. Consumers can reduce average pricing in the mortgage market by availing of switching options to ensure that recent and potential future price reductions through increased competition pass through to the greatest number of customers possible. Indeed the Central Bank advises that a recent study by it estimated that three in every five ‘eligible’ mortgages for principal dwelling homes stand to save over €1,000 within the first year if they switch and €10,000 over the remaining term.
Ultimately, however, the price lenders charge for their loans is a commercial matter for individual lenders. As Minister for Finance I cannot determine the lending policies of individual banks including the interest rates they charge for loans including mortgages. Nevertheless, I will continue to work with the Central Bank and also engage with lenders to encourage, within a framework which seeks to maintain overall financial stability, greater price and other competition in the mortgage market, both for new and existing borrowers. 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, in particular to borrowers who may still on a standard variable rate with their lender, who may wish to consider switching to a new lender.
73. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which basic economic fundamentals continue to be recognised and applied in the economy; and if he will make a statement on the matter. [10890/21]
View answerPrior to the pandemic Irish economic fundamentals were very strong, with robust growth, a labour market close to full employment, and surpluses in the current account and the public finances. The outbreak of the pandemic turned the economy on its head in the space of a few weeks however, with the introduction of Covid-19 restrictions resulting in a sharp contraction in economic activity in the spring last year. However, in keeping with the pattern seen in other countries, the economy rebounded over the summer months as restrictions were eased.
According to the European Commission’s winter forecast, Ireland is now expected to be the only country in Europe to record positive GDP growth in 2020. However, we must be cognisant that GDP figures do not provide an accurate representation of domestic economic activity, given the size of our multinational sector. Indeed, the ‘dual-nature’ of the Irish economy – characterised by highly productive and mainly foreign-owned MNCs on one side and domestic-SMEs on the other – has become even more pronounced during the pandemic. Parts of the multinational sector, most notably pharmaceuticals and ICT, have performed strongly throughout the pandemic. In contrast, the hit to the domestic economy has been severe, with domestic-facing sectors, such as hospitality, leisure and education, bearing the brunt of the economic impact.
The impact of the pandemic on domestic economic activity is most evident in the labour market. The unemployment rate, which peaked at over 30 per cent in April last year, remains elevated and stood at around 25 per cent in January and there are currently over 1 million people in receipt of some form of State income support. While the impact on the labour market has undoubtedly been severe, government supports such as the Pandemic Unemployment Payment and the Wage Subsidy Schemes have helped cushion the impact on household incomes.
With the vaccine programme now underway, there is light at the end of the tunnel. While this process will take time and restrictions will be required in the near term, as the vaccine programme picks up speed and the public health situation improves, these restrictions will gradually be eased and an economic recovery will take hold. In the meantime, as we continue to live with the virus and manage the public health threat posed by Covid-19, it is crucial that we continue to support households and firms and get people back to work as soon as it is safe to do so in order to minimise any potential long-term damage to the labour market, thereby aiding our economic recovery. More broadly, as a small, open and adaptable economy, our resilience and strength comes from being one that remains open to investment and facilitates trade across our borders. This has been proven to be the strength of the Irish economy over decades and is still the case today.
74. Deputy Róisín Shortall asked the Minister for Finance if guidance and advice will be provided to the public in respect of charges that are payable on items purchased online from the UK; the permissible taxes; the permissible customs duty; the permissible other charges on these transactions; the recourse for consumers who are overcharged under these headings; and if he will make a statement on the matter. [10928/21]
View answerThe Deputy will be aware that since 1 January 2021, the UK has been outside the EU Single Market and Customs Union, and the trading relationship between Ireland and Great Britain has changed considerably. Compliance with relevant customs and other regulatory controls such as sanitary and phytosanitary (SPS) measures are now an integral part of trade with Great Britain. As a result, imports including online purchases from the UK (excluding Northern Ireland) may incur additional charges including Customs duties and VAT.
I am advised by Revenue that VAT is chargeable on all imports from Great Britain that are greater than €22. Customs duty may be chargeable on purchases over €150, depending on the origin of the goods. The EU-UK Trade and Cooperation Agreement has eliminated Customs duties for goods imported from Great Britain where the goods are of UK origin. However, where the goods being imported from the UK are not of UK origin, then these are subject to Customs duties. The customs value on which Customs Duty is calculated is the cost of the goods plus the transport costs (including postage), any insurance fees and any handling charges to deliver the goods to the EU. VAT is calculated on the Customs Value, plus any Customs Duty applicable.
Consumers should carefully check the billing policy of the website from which they are purchasing to confirm if the price quoted includes VAT and Customs duty. If VAT and Customs duty is not included, then this will have to be paid when the goods are delivered. Carriers/delivery companies may also add their own charges, and these can vary depending on the carrier/delivery company used.
Queries relating to the carrier/delivery company charges should be directed to the company who delivered the goods. Queries relating to the calculation of the import charges should be directed to the company that completed the customs formalities which, usually for online or personal shopping, will be the carrier/delivery company.
Finally, I am advised by Revenue that its website has a useful guide to import taxes for online shopping: https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/buying-of-goods-online-for-personal-use/index.aspx. There are detailed examples which show how the taxes are calculated, guidance on returning items and a section covering, ‘How to claim a refund of Customs Duty and Value-Added Tax (VAT)’ where the goods have been returned to the seller. Useful information is also available under the ‘Shopping online’ section of the Competition and Consumer Protection Commission website at https://www.ccpc.ie/consumers/shopping/brexit/.
75. Deputy Gary Gannon asked the Minister for Finance if his attention been drawn to the lack of banks in the Irish market that accept carer’s allowance income as income for the purposes of loans, mortgages and other financial products following the withdrawal of a bank (details supplied); his plans to remedy these issues; the suggested recourse for those on carer’s allowance that need financial services such as loans and mortgages; and if he will make a statement on the matter. [10952/21]
View answerWhile regulated lenders must comply with the various rules within the consumer protection and macroprudential regulatory frameworks, the extension of credit by lenders to potential customers is a commercial decision for the lender themselves. As such, each lender will have its own individual credit lending policies and loan underwriting criteria and it will be a matter for each lender to decide how it treats different types of income in the context of considering individual applications for credit and it is not possible or appropriate for me as Minister for Finance to instruct lenders or seek to influence the decisions of lenders in that regard.
In overall terms, regulated 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 Central Bank Consumer Protection Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation. Furthermore, where a lender refuses credit 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.
76. Deputy Mairéad Farrell asked the Minister for Finance the number and value of procurement contracts for Covid-19-related spending in 2020 and 2021 that took place via negotiated procedure without prior publication in his Department. [11179/21]
View answer77. Deputy Mairéad Farrell asked the Minister for Finance the breakdown of procurement contracts for Covid-19-related spending in 2020 and 2021 that took place via negotiated procedure without prior publication by his Department, by goods and service type in tabular form. [11209/21]
View answerI propose to take Questions Nos. 76 and 77 together.
I wish to advise the Deputy that the information requested in relation to contracts for Covid-19 related spending in 2020 and 2021 that took place via negotiated procedure without prior publication in my Department is outlined below in tabular form.
|
Number of procurement contracts |
1 |
|
Total value of procurement |
€1,650.24 |
|
Goods / Service Type |
Video Conferencing licences / ICT related expenditure. |
