Written Answers Nos. 407-424
407. Deputy Peadar Tóibín asked the Minister for Finance the number of departmental staff currently on sick or stress leave; and the number who took stress or sick leave in each of the past five years and to date in 2023, in tabular form. [17778/23]
View answerI wish to inform the Deputy the number of staff in my Department currently on sick leave or leave cited as stress related is set out in Table A below:
Table A:
|
Current Number of Staff on Sick Leave |
Current Number of Staff on Stress Leave |
|
2 |
0 |
The number of staff in my Department currently on sick leave or leave cited as stress related over the last five years is set out in Table B below:
Table B:
|
Year |
Sick Leave* |
Stress Leave |
|
2023 (to date) |
43 |
1 |
|
2022 |
105 |
2 |
|
2021 |
82 |
3 |
|
2020 |
108 |
0 |
|
2019 |
172 |
5 |
|
2018 |
164 |
2 |
*Number of staff on Stress Leave is also included in the figures for Staff on Sick Leave as stress related leave is a category of Sick Leave.
The Department provides assistance and information to all staff on sick leave (including stress related) to assist them in managing their absence. Staff have access to a confidential Civil Service Employee Assistance Service that can provide guidance and support for personal or work related issues. Staff can also contact the local HR Unit in my Department or the NSSO (HR shared service for the Civil Service) for for advice or information on or any aspect of sick leave.
408. Deputy Peadar Tóibín asked the Minister for Finance the number of allegations of bullying made by departmental staff against departmental staff in each of the past five years, and to date in 2023, in tabular form; and if he will detail what actions are being taken by his Department to investigate the allegations, or if they are being investigated. [17796/23]
View answerI wish to inform the Deputy that there were no allegations of bullying made by departmental staff against departmental staff in each of the past five years, and none to date in 2023.
The key policy in relation to this is the "Dignity at Work Policy". This policy sets out procedures for staff to resolve issues or complaints which relate to bullying, harassment or sexual harassment in the Civil Service.
It is provided to all staff on joining my Department and is contained in the Department's Staff Booklet which is circulated regularly to all staff.
409. Deputy Peadar Tóibín asked the Minister for Finance the number of Departmental staff dismissed in each of the past ten years and to date in 2023, in tabular form. [17814/23]
View answerI wish to inform the Deputy the details of the number of Departmental staff of this Department that were dismissed in each of the past ten years, and to date in 2023 is set out in Table A below.
Table A
|
Year |
Number of Staff Dismissed |
|
2023 |
0 |
|
2022 |
0 |
|
2021 |
0 |
|
2020 |
0 |
|
2019 |
1 |
|
2018 |
0 |
|
2017 |
0 |
|
2016 |
0 |
|
2015 |
0 |
|
2014 |
0 |
|
2013 |
0 |
The dismissal procedure was followed and adhered to, as set out in the Civil Service Disciplinary Code (Circular 19/2016).
410. Deputy Jackie Cahill asked the Minister for Finance if capital gains tax is applied to the sales price of a pub licence; and if he will make a statement on the matter. [17914/23]
View answerIn general, capital gains tax (CGT) is chargeable on a gain arising on the disposal of an asset, including a pub licence, at the rate of 33%.
The chargeable gain arising on the disposal of an asset is generally the difference between the sale price and the base cost, being the cost incurred when acquiring the asset, however, where an asset is transferred other than by way of a transaction at arm’s length, e.g. between connected persons or as a gift, it is deemed to be disposed of and acquired at its market value. Incidental costs associated with the purchase and sale of the asset as well as any enhancement expenditure that may have been incurred may also be deducted in calculating the chargeable gain.
The first €1,270 of chargeable gains of an individual in any year are exempt from CGT. Depending on the circumstances, certain CGT reliefs may apply. Further guidance on the operation of CGT and associated reliefs can be found on Revenue’s website.
411. Deputy Ivana Bacik asked the Minister for Finance his views on the situation facing chronically ill persons who are excluded from life insurance cover; and if he has plans to ensure that their families are compensated upon their death; and if he will make a statement on the matter. [17921/23]
View answerI am aware of the issue of access to certain insurance services – including life insurance – for individuals with underlying health conditions and chronic illnesses. This is a very sensitive matter for many in our community.
As the Deputy will appreciate, neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance companies (the Solvency II Directive).
It is my understanding that generally insurers use a combination of rating factors in making their individual decisions on whether to offer life cover 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 have specifically contacted Insurance Ireland in relation to the Deputy’s question. It has advised that generally, when a consumer is taking out a life assurance/income protection or serious illness policy, a company is obliged to assess the risk involved as part of the application, so the existence or potential of any medical condition will have to be taken into consideration. This can result in a postponement of a final decision, particularly where the consumer is awaiting test results, displaying symptoms of a medical condition or has an underlying medical condition. However, different insurers can use slightly different criteria to assess this risk.
Insurance Ireland operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover and this can be accessed by calling 01 676 1820 or emailing feedback@insuranceireland.eu. In addition, Brokers Ireland has access to a wide range of providers and products, and can provide assistance to customers who are experiencing insurance accessibility issues. Brokers Ireland can be contacted at: 01 661 3067 or at insurancequeries@brokersireland.ie.
412. Deputy Colm Burke asked the Minister for Finance if there are any plans to increase the small gift exemption for capital acquisition tax from €3,000 to €5,000; the potential cost of such a measure; and if he will make a statement on the matter. [17930/23]
View answerAs the Deputy is aware, the Small Gift Exemption is an annual CAT relief available to all recipients of gifts. This means that each parent can give a gift to the value of €3,000 to a child (or anyone else) each calendar year without any CAT arising. Two parents can make gifts to a child to the value of €6,000 in any year free of CAT. Indeed, two parents could, if they wished, gift €12,000 in total each year to each son or daughter and their respective partner (e.g. fiancée, fiancé, daughter-in-law, son-in-law) free of CAT.
I am advised by Revenue that the estimated cost of increasing the small gift exemption from €3,000 to €5,000 is in the region of €1.2 million. This estimate is based on Capital Acquisitions Tax returns filed in 2022 and does not include the impact of any behavioural changes that may occur as a result of this measure.
Any changes to the Small Gift Exemption must be considered in the context of competing demands. I believe the current relief available to be fair, and have no plans to increase the Small Gift Exemption at this time.
413. Deputy John McGuinness asked the Minister for Finance if he will provide an estimate of the level of tax foregone should the age exemption tax relief be increased to €45,000.00 or €50,000.00, respectively; and if he will consider such a change in the context of Budget 2024. [17931/23]
View answerIt is assumed that the Deputy’s proposals are to increase the married age exemption limits to €45,000 and €50,000 per annum respectively.
On that basis, I am advised by Revenue that the estimated first and full year cost of increasing the age exemption limit to €45,000 for a married couple and €22,500 for a single person would be in the order of €180 million and €210 million respectively.
The estimated cost of increasing the age exemption limit to €50,000 for a married couple and €25,000 for a single person would be in the order of €310 million and €360 million respectively.
These costs include corresponding increases to the limits on marginal relief but do not included any increase in the child addition limits.
At present, I have no plans to increase the age exemption thresholds. It is also important to take into account that the current tax arrangements for persons aged 65 or older compare favourably with the tax treatment of the generality of taxpayers. For example, persons aged 65 or over may also avail of the age tax credit, which currently amounts to €245 per year for single persons or €490 per year for married couples or civil partners. It is also important to point out that a taxpayer is always given the benefit of the more favourable treatment as between the use of marginal relief or the normal tax system of credits and bands.
Furthermore, reduced rates of USC also apply for persons aged 70 or older where their total income is €60,000 or less. Additionally, the State Contributory Pension and the State Non-Contributory Pension are not chargeable to USC or PRSI.
As the Deputy may be aware, the recent Commission on Taxation and Welfare recommended that age should be removed as a factor for determining the charge to Income Tax and USC. The report stated that the determination of an individual’s tax treatment based on age narrows the base and breaches the concept of horizontal equity, whereby those with similar income should pay the same proportion of that income in taxes. It also breaches the concept of intergenerational equity. Further details are set out in the Report of the Commission, located at the following link - www.gov.ie/en/publication/7fbeb-report-of-the-commission/
My Department has begun work on a review of the personal tax system, taking account of the recent report of the Commission on Taxation and Welfare, and considering a range of personal taxation issues.
414. Deputy Jackie Cahill asked the Minister for Finance when the classification for taxation purposes of loading shovels and silerators changed to the same taxation bracket as a commercial van, considering that this has resulted in the tax for these items increasing from €102 to €330 per year; the reason this decision was made; and if he will make a statement on the matter. [17940/23]
View answerMotor tax rates for different categories of vehicle are provided for in Part I of the Schedule of the Finance (Excise Duties) (Vehicles) Act 1952. Paragraph 2 (c) covers any vehicle for the conveyance of a machine, workshop, contrivance or implement, including recovery vehicles, and sets the motor tax rate for these vehicles at €333 per annum (the same rate as a commercial van). Paragraph 4 covers, inter alia, agricultural tractors, trench diggers and excavators and sets the motor tax rate for these vehicles at €102. These paragraphs were last amended in the Motor Vehicle (Duties and Licences) Act 2013 and there has been no change since then.
The individual motor tax offices run by the local authorities are responsible for implementing motor tax rates within their area of responsibility. The Department of Transport liaises closely with the motor tax offices and will clarify the matter if any misunderstandings have arisen in relation to the above motor tax rates.
415. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to ensure that a State body (details supplied) engages productively with individuals concerning arrears, and avoids a confrontational approach. [17958/23]
View answerI understand that the Deputy’s question relates specifically to Revenue’s recent Local Property Tax (LPT) compliance campaign.
I am advised by Revenue that LPT returns and payments have been filed, and are up to date for approximately 1.7m properties for the year 2023. This represents a return and payment compliance rate of 93% and 90% respectively.
Revenue conducts a number of compliance campaigns reminding liable persons of their LPT obligations. Revenue recently wrote to 150,000 liable owners who have not yet complied with their LPT obligations for 2023 affording them a final opportunity to bring their LPT position up to date. This campaign mirrors the standard compliance procedures which have been in place since the introduction of LPT, with the exception of the years 2020 and 2021, when standard procedures were partially suspended on foot of the Covid-19 pandemic. Revenue has an obligation to address non-compliance and I’m sure the Deputy supports Revenue’s efforts in this regard.
While Revenue is obliged to collect all tax liabilities as they fall due, it is acknowledged that there are situations where normally compliant taxpayers experience difficulties that result in a failure to meet their tax obligations on time. In such scenarios, Revenue is committed to engaging with taxpayers to agree flexible payment arrangements that best suits their individual circumstances and avoids unnecessary hardship.
Any property owners experiencing financial difficulties can avail of a wide range of payment options for LPT both in respect of 2023 liabilities and for any previous years where liabilities are still outstanding. There are also legislative provisions in place that allow property owners to defer payment of LPT in certain circumstances. Information about the various payment and deferral options for LPT is available at revenue.ie/en/property/local-property-tax/index.aspx
Property owners experiencing difficulties in meeting their LPT obligations can contact Revenue online via MyEnquiries, by phone to the LPT Helpline, (01 738 36 26) or in writing to LPT Branch, PO Box 1, Limerick, where every effort will be made to agree a suitable payment or deferral arrangement.
416. Deputy Catherine Murphy asked the Minister for Finance if he has spoken with his Canadian counterpart to date in 2023. [18040/23]
View answerIreland enjoys a deep and wide-ranging bilateral relationship with Canada, owing from our historic cultural and people-to-people ties, our economic and trade relationship, and our cooperation on global affairs across an array of fora and channels. Since my appointment as Minister for Finance last December, I have not yet had direct engagement with Canada’s Deputy Prime Minister and Minister for Finance, Chrystia Freeland. However I look forward to an opportunity to engage with her and to continuing the long-standing engagement and cooperation between our countries and economies.
As the Deputy might be aware, Ireland, Canada and a number of Caribbean countries share a constituency at a number of International Financial Institutions. While participating in the IMF-World Bank Spring Meetings in Washington last week, I had an opportunity to meet with Canadian Executive Directors of our shared constituencies at both the IMF and World Bank. These engagements provided an opportunity to discuss the economic situation and challenges at national, regional and global levels, as well as matters being discussed and considered by the Executive Boards of both of these institutions.
417. Deputy Ivana Bacik asked the Minister for Finance if he will make a statement on recommendations No. 35 and No. 38 of the Report of the Citizens' Assembly on Biodiversity Loss. [18092/23]
View answerThe Terms of Reference for the Citizens' Assembly on Biodiversity Loss specify that: the Government shall, on consideration of the report from the Citizens’ Assembly, provide in the Houses of the Oireachtas a response to each recommendation of the Assembly, setting out a timeframe for implementing those recommendations which it accepts.
Having now received the report of the Citizens' Assembly, the Government is commencing the process of preparing a comprehensive response to the full set of recommendations from the Assembly. Further information on the timeline of this response will be provided in due course.
In relation to recommendation no. 35, Ireland has committed to a number of measures addressing greenhouse gas (GHG) emissions and climate issues through the adoption of the Climate Action and Low Carbon Development (Amendment) Act 2021 and actions under successive Climate Action Plans (CAPs). The actions addressing climate change through GHG emissions reduction are kept under review through the Climate Action Delivery Board and through the review process of CAPs. Environmental taxation is reviewed annually through the budget process including examining tax measures and tax expenditures from a green budgeting perspective and by way of analysis contained in annual Tax Strategy Group Papers which are available online.
In relation to recommendation no. 38, I would highlight to the Deputy that strengthening the resilience of the European banking sector to environmental, social and governance (ESG) risks is one of the key objectives of the EU Banking Package. Improving the way banks measure and manage these risks is essential, as is ensuring that markets and investors can monitor what banks are doing. Prudential regulation has a crucial role to play in this respect. The EU Banking Package is currently at the trilogue negotiation stage with the co-legislators and it is hoped that final agreement will be achieved later this year.
On 8th November 2022, Government approved the establishment of a €500 million Growth and Sustainability Loan Scheme (GSLS). The Strategic Banking Corporation of Ireland will deliver the Scheme, which will provide for loans of €25,000 to €3m for terms of 7 to 10 years. The GSLS will be available to SMEs, including farmers and fishers. Under the scheme, 70% of the lending volume will be provided for investment in business growth and sustainability, while a minimum of 30% of lending volume will be directed to investment in environmental sustainability. The GSLS is due to be launched in Q2 2023.
Furthermore, Ireland’s 4th National Biodiversity Action Plan (NBAP) is currently in development. The Plan will set the national biodiversity agenda for the period 2023-2027 and aims to deliver the transformative changes required to the ways in which we value and protect nature.
418. Deputy Robert Troy asked the Minister for Finance if he will provide an update on a primary medical certificate appeal by a person (details supplied). [18107/23]
View answerAt the outset the Deputy should note that I have no role in relation to the granting or refusal of primary medical certificates and the HSE and the Medical Board of Appeal must be independent in their clinical determinations. Therefore I can provide no update.
In relation to the the recommencement of the Disabled Drivers Medical Board of Appeal (DDMBA), the position is that following the resignation of all previous DDMBA members in November 2021, I had hoped that I would be in a position to establish a new DDMBA and recommence the appeals process by this point.
With respect to the recruitment of new members, as background five members are legislatively required for a functional Board with a quorum of three needed for any appeal hearing. The Department of Health has led on all actions and tasks with respect to Expression of Interest Campaigns to recruit candidates. Department of Finance officials have provided support to the Department of Health in this matter. Active recruitment efforts began shortly after the resignation of all members in November 2021, with the first Expression of Interest Campaign launched in January 2022. By November 2022 after three recruitment campaigns, five individuals had been nominated by the Minister of Health, pending successful completion of Garda vetting of two final candidates. These candidates successfully completed Garda vetting in January 2023.
Engagement began in December 2021 with the National Rehabilitation Hospital (NRH), to ascertain the conditions for their continued hosting of the new DDMBA. In February 2023, the National Rehabilitation Hospital (that has hosted the DDMBA since 2000) indicated their intention to withdraw their services with immediate effect. Finance and Health officials are actively seeking to implement new arrangements, including engaging with the NRH. As there are a range of requirements and complex issues involved this may take some time.
Requests for appeal hearings can still be sent to the DDMBA secretary based in the National Rehabilitation Hospital.
Assessments for the primary medical certificate, by the HSE, are continuing to take place. In this regard, an important point to make is that even though there has been no appeal mechanism since the previous Board resigned, applicants who have been deemed not to have met one of the six eligibility criteria required for a PMC are entitled to request another PMC assessment six months after an unsuccessful PMC assessment.
419. Deputy Louise O'Reilly asked the Minister for Finance what domestic actions he plans to take to reduce Ireland's VAT gap; and if he will make a statement on the matter. [18110/23]
View answerThe VAT gap is an estimate comparing a maximum theoretical tax liability (approximated from economic activity in a country) against actual VAT collected. A tax gap can arise for many reasons, including non-compliance but also due to legitimate tax optimisation, insolvencies, bankruptcies and economic activity not fully captured in National Accounts data.
Since 2009, the European Commission has engaged consultants to estimate the VAT gap in each EU Member State and the EU as a whole. Given its nature, a tax gap cannot be easily or reliably measured. It must be estimated on the basis of limited data and making a significant number of assumptions. While Ireland continues to engage with the Commission on this topic, I am advised that Revenue has concerns around the robustness of the methodology and data used and the accuracy of the results.
Despite these concerns, it is useful to note the overall trends. Ireland’s VAT gap is estimated at 12.5% for 2020 in the most recent study (published in 2022), up from 10.3% for 2019. From an EU perspective, the average VAT gap is estimated at 9.1%, with Ireland ranking as the 8th highest across Member States.
As well as the main VAT gap, the Commission also estimates the policy gap (an indicator of the additional VAT revenue that a Member State could theoretically generate if a uniform VAT rate applied with full tax compliance on all goods and services). Components of the policy gap include the loss in VAT liability due to the application of reduced rates or exemptions.
The Commission’s consultants estimate that Ireland has a 51.9% measure for the policy gap, implying that VAT revenues would increase by 51.9% with the application of a uniform VAT rate to items that are exempt or zero rated, e.g. the provision of medical services, education, food, children's clothing and footwear, etc. The EU average is 45.7%.
The VAT policy gap does not provide a detailed breakdown of the costs within each VAT rate or for VAT exempt activities. Essentially the policy gap measures the total revenue that would be collected if the standard VAT rate was applied to the supplies of all goods and services. For example, I am informed by Revenue that if the standard rate of VAT was applied to the supply of all zero-rated food items, the potential VAT revenue yields would be in the region of €1.6 billion.
420. Deputy Louise O'Reilly asked the Minister for Finance the estimated extra revenue that would accrue to the State if EU proposals on "VAT in the Digital Age" were enacted; and if he will make a statement on the matter. [18111/23]
View answerOn 8th December 2022, the European Commission published its proposed “VAT in the Digital Age” reforms to amend the European Union VAT system to respond to the challenges of digitalisation. The proposed reforms aim to make the EU’s VAT system more resilient to fraud and more efficient for businesses. There are three pillars involved in the proposal.
The first is the introduction of common standardised Digital Reporting Requirements (DRR) and e-invoicing on business-to-business (B2B) cross-border transactions within the EU. The proposed changes would replace the current recapitulative statements with a new Digital Reporting System for intra-community transactions and would cover the same transactions that are currently covered by the recapitulative statements with additional reporting requirements. Member States will also have the option to impose DRR for domestic supplies of goods and services, similar to the mandatory DRR designed for intra-community transactions. The expectation is that the existing digital reporting requirements in various Member States should converge with the proposed cross-border requirements by 2028.
The second pillar of the proposal addresses the challenges of the platform economy in short-term accommodation rental and passenger transport services by clarifying existing rules and enhancing the role of e-commerce platforms in VAT collection. The proposed changes would mean that these facilitation services when provided by platforms to private persons will always be taxable where the underlying transaction is supplied. It will also place an obligation on platforms to charge VAT where the underlying provider is not VAT registered. Additionally, the currently optional Import One Stop Shop (IOSS) would become mandatory for platforms when certain imports of goods to consumers in the European Union are facilitated by them.
The third pillar of the proposal would reduce VAT registration requirements in the EU by expanding the scope of the One Stop Shop (OSS) and the application of the reverse charge for B2B transactions.
The proposals are significant. They will modernise the VAT landscape and will result in increased revenues for Tax Administrations and reduced costs for business if they enter into force, as intended, between 2024 and 2028.
A number of Council meetings have taken place since January 2023 to discuss the proposals and, in common with all legislative proposals of this nature, some of the proposed amendments may not be agreed or may change significantly from what is proposed. Unanimous approval of all EU Member States is required for the proposals to enter in force and, even if there is full agreement, it is possible that implementation may be delayed.
It is not possible to estimate the extra revenue that will accrue directly to the State if the proposals are enacted. The European Commission has estimated that they should result in EU Member States collecting up to €18 billion in additional VAT revenues annually, €11 billion of this as a result of anti-fraud measures, while also reducing administrative costs for business.
421. Deputy Holly Cairns asked the Minister for Finance to extend the exception from capital acquisitions tax for a spouse or civil partner to long-term cohabiting couples; and if he will make a statement on the matter. [18176/23]
View answerAs the Deputy may be aware, for the purposes of capital acquisitions tax (“CAT”), the relationship between the person who provides a gift or inheritance (“the disponer”) and the person who receives it (“the beneficiary”) determines the tax-free threshold (“Group Threshold”) below which CAT does not arise.
Any prior gift or inheritance received by a person since 5 December 1991 from within the same Group Threshold is aggregated for the purposes of determining whether any CAT is payable on a benefit. Where a person receives gifts or inheritances that are in excess of the relevant Group Threshold, CAT at a rate of 33% applies on the excess. In the case of long-term cohabitants who are not related, the relevant Group Threshold is the Group C threshold, which is currently €16,250. In addition to this, a CAT exemption may be available in relation to certain gifts and inheritances between long-term cohabitants.
Firstly, where a cohabitant inherits the family home from his or her deceased partner, he or she may be in a position to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the deceased cohabitant’s principal private residence at the date of his or her death. This requirement is relaxed in situations where the deceased person left the property before the date of death due to ill health; for example, to live in in a nursing home. In addition, the inheriting cohabitant must not have a beneficial interest in another residential property. The inheriting cohabitant must also have lived in the house for 3 years prior to the date of the inheritance and must continue to live in the house for 6 years after that date. Detailed guidance on the dwelling house exemption has been published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/capital-acquisitions-tax/cat-part24.pdf.
In addition to the dwelling house exemption, gifts and inheritances taken by a qualified cohabitant in accordance with a court order made under Part 15 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 are exempt from CAT. Part 15 of that Act provides for a redress scheme whereby court orders can be obtained in certain circumstances in relation to the transfer of property. A “qualified cohabitant” is a person who has been in a committed and loving relationship with another person for a minimum period of 5 years (or 2 years where they are parents of one or more dependent children), whose relationship has ended due to death or separation and neither of whom was married to and living with another person in 4 of the 5 years immediately prior to the end of the relationship.
In relation to the Deputy’s reference to couples who are long-term cohabitants, it is important to note that differences in the tax treatment of the different categories of couples arise from the objective of dealing with different circumstances. Under the law, couples who have obtained legal recognition of their relationship status through marriage or civil partnership are not in an analogous situation to other cohabiting couples, which is why they are not accorded similar tax treatment to couples who have a civil status that is recognised in law. Any change in the tax treatment of cohabiting couples can only be addressed in the broader context of future social and legal policy development in relation to such couples.
Further information on the taxation of cohabiting couples can be found on the Revenue website, available at www.revenue.ie/en/life-events-and-personal-circumstances/marital-status/cohabiting-couples/index.aspx .
422. Deputy Cian O'Callaghan asked the Minister for Finance if his attention has been drawn to the large hikes in mortgage rates without the corresponding increase in savings rates for banking customers; if he will take action to ensure banks are required to increase savings rates alongside mortgage rates; and if he will make a statement on the matter. [18185/23]
View answerThe formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation. The level of official interest rates will influence the overall level of interest rates throughout the economy.
However, the determination and adjustment of retail and business lending rates and deposit rates are commercial decisions for individual lenders in line with the terms of the particular credit or savings contract and I have no function or role in such decision making matters by financial institutions.
Nevertheless, it is worth noting that the weighted average interest rate on new Irish mortgage agreements charged by credit institutions in Ireland at end-February 2023 was 2.92 per cent (compared to 2.76% in February 2022). The comparable average interest rate for new mortgages in the euro zone was 3.33% in February 2023, up from 1.36% in February 2022. The rate on new Irish mortgage agreements has now been less than the euro area average since October 2022 and is now the third lowest in the euro area.
In relation to savings rates, the Central Bank has advised that interest rates on household overnight deposits stood at 0.03 per cent in February 2023. Interest rates on new household deposits with agreed maturity rose to 1.02 per cent in February in Ireland.
The equivalent rate in the euro area was 1.92 per cent. Interest rates on outstanding deposits’ rates with agreed maturity was 0.35 percent in February 2023 an annual increase of 25 basis points since February 2022.
423. Deputy Kathleen Funchion asked the Minister for Finance if a company (details supplied) was in possession of a banking licence when operating in May 2015; and if he will make a statement on the matter. [18188/23]
View answerThe Central Bank has advised me that Mars Capital Ireland no. 2 DAC was first authorised by the Central Bank on 14 April 2022. Mars Capital Ireland no. 2 DAC held a transitional authorisation as a credit servicing firm from 21 April 2019 until it was granted full authorisation on 14 April 2022.
It is worth noting that it may be the case that a firm held legal title to credit prior to holding its authorisation; holding legal title to credit only became a regulated activity with the introduction of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018, which came into effect on 21 January 2019.
Information on the current authorisation status of the firm is available on the Central Bank Register part of the Central Bank website.
424. Deputy Seán Haughey asked the Minister for Finance his views on the rise in interest rates in recent months; if he is aware of the concerns of savers who are disappointed that the interest rate given on deposit accounts is not increasing in line with interest rates rises on mortgage accounts; if he will raise this issue with the Central Bank; and if he will make a statement on the matter. [18199/23]
View answerThe formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation. The level of official interest rates will influence the overall level of interest rates throughout the economy.
However, the determination and adjustment of retail and business lending rates and deposit rates are commercial decisions for individual lenders in line with the terms of the particular credit or savings contract and neither the Central Bank nor I have any function or role in such decision making matters by financial institutions.
Nevertheless, it is worth noting that the weighted average interest rate on new Irish mortgage agreements charged by credit institutions in Ireland at end-February 2023 was 2.92 per cent (compared to 2.76% in February 2022). The comparable average interest rate for new mortgages in the euro zone was 3.33% in February 2023, up from 1.36% in February 2022. The rate on new Irish mortgage agreements has now been less than the euro area average since October 2022 and is now the third lowest in the euro area.
In relation to savings rates, the Central Bank has advised that interest rates on household overnight deposits stood at 0.03 per cent in February 2023. Interest rates on new household deposits with agreed maturity rose to 1.02 per cent in February in Ireland. The equivalent rate in the euro area was 1.92 per cent. Interest rates on outstanding deposits’ rates with agreed maturity was 0.35 percent in February 2023, an annual increase of 25 basis points since February 2022.
