Written Answers Nos.145-164
145. Deputy Pearse Doherty asked the Minister for Finance if he will quantify the fees paid by the National Asset Management Agency for the recruitment of staff in 2011 and for the nine months ending 30 September 2012. [42679/12]
Amharc ar fhreagraI am advised that the National Treasury Management Agency (NTMA) has incurred recruitment costs in respect of employees assigned to the National Asset Management Agency (NAMA) of €316,000 during 2011 and €197,000 for the nine months ending 30 September. Such recruitment costs include fees paid to recruitment agencies, pre-employment medical tests and psychometric testing, and advertising. The NTMA and NAMA have sought to minimise recruitment costs through the direct advertisement of staff vacancies on their websites. Under Section 42 (4) of the National Asset Management Agency Act, NAMA is required to reimburse NTMA for the costs incurred including the recruitment and assignment of staff to NAMA.
146. Deputy Pearse Doherty asked the Minister for Finance further to the commitment made by National Asset Management Agency to calculate a provision for impairment twice a year, to quantify the provision for impairments made by NAMA for the six months ending 30 June 2012 as contained in the second quarter 2012 accounts which were due to be submitted to him by 30 September 2012. [42680/12]
Amharc ar fhreagraThe details sought by the Deputy are set out in NAMA's Section 55 Quarterly Accounts for the three months ending 30th June 2012, which are currently being considered by Government and will be laid before the Houses of the Oireachtas in due course.
147. Deputy Pearse Doherty asked the Minister for Finance if he will provide an estimate for the financial outturn at the National Asset Management Agency for the 12 months ending 31 December 2012 to include the estimated provision for impairment and the profit before tax. [42681/12]
Amharc ar fhreagraI am advised by the National Asset Management Agency (NAMA) that it does not publish estimates of financial outturn prior to the closure of accounts and the production of the statement of accounts.
In this regard, NAMA advises that the year-end provisioning exercise can only be completed by reference to the loan balance at 31st December 2012 and circumstances that will pertain at that time as required under IFRS. NAMA further advises that variables such as the fair value of derivatives and foreign exchange movements will have to be taken account of at that time.
148. Deputy Pearse Doherty asked the Minister for Finance if the National Asset Management Agency operates a so-called long-term incentive plan as part of its remuneration package offered to some employees; if he will provide an outline of the scheme and indicate the sums of money potentially on offer to employees benefiting from such a plan. [42682/12]
Amharc ar fhreagraI am advised by the National Asset Management Agency (NAMA) that it does not currently operate what the Deputy describes as a "long-term incentive plan" as part of its remuneration package offered to employees.
149. Deputy Pearse Doherty asked the Minister for Finance if he will indicate the timeframe in which to process an application for a VAT EU refund for a business (details supplied) in County Antrim; if he will indicate the average length of time for processing such applications; and if he will make a statement on the matter. [42696/12]
Amharc ar fhreagra150. Deputy Pearse Doherty asked the Minister for Finance if his attention has been drawn to the impact on haulage businesses cash flow arising from delays in the processing of VAT EU refund applications and the potential loss to the Exchequer that could arise if such delays forced businesses located in the north of Ireland to cease sourcing fuel from the south of Ireland; and if he will make a statement on the matter. [42697/12]
Amharc ar fhreagra151. Deputy Pearse Doherty asked the Minister for Finance if he will consider allowing VAT EU refund applications to be made and granted on a monthly basis rather than the current three monthly basis, in order to assist businesses meet their cash flow needs; and if he will make a statement on the matter. [42698/12]
Amharc ar fhreagraI propose to take Questions Nos. 149 to 151, inclusive, together.
The Directive stipulates that the Member State of refund shall notify the applicant of its decision to approve or refuse the refund application within four months of its receipt by that Member State. It also provides for an extension of the timeframe for a decision for a period of up to eight months depending on whether additional information, if sought by the Member State of refund, has been provided by the applicant or not.
I am advised by Revenue that there are no undue delays in processing applications for refund of VAT to taxable persons not established in Ireland but established in other Member States. Revenue has informed me that such claims are generally dealt with in accordance with Revenue Customer Service Standards, that is 80% of claims are repaid within 10 working days and 100% are repaid within 20 working days, provided all the information required to process the claim is supplied by the claimant or the Agent.
With regard to allowing refunds to be made on a monthly basis, the time periods in respect of which claims can be submitted are also set out in the Directive. It stipulates that a refund period shall not be more than one calendar year or less than three calendar months.
I am advised by the Revenue Commissioners that an application for a refund of VAT from the business concerned in Question No. 149 was received on 1 October 2012. It is now being processed in the normal manner and, assuming that it passes all the normal processing and verification checks, payment will be made within the next two weeks.
152. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the amount of VAT that has been collected at the higher rate for each of the past five years; if he will provide on a county basis the amount of VAT that has been collected at the higher rate for 2011; and if he will make a statement on the matter. [42714/12]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the amount of VAT collected at the higher rate for the years 2007 to 2011 is set out in the following table.
VAT collected at the standard rate of 23%
|
Year |
Yield at higher Rate |
|
€m |
|
|
2007 |
8,104 |
|
2008 |
8,113 |
|
2009 |
6,948 |
|
2010 |
6,364 |
|
2011 |
6,047 |
Precise figures for the breakdown of VAT receipts by tax rate are not available and consequently the figures provided in the table are tentative estimates.
I am also informed by the Revenue Commissioners that the available information on VAT receipts by county is in respect of the total estimated net receipt of VAT at all rates for the year 2010. The amount of yield in question is €9,051 million and an estimated breakdown on a county basis is set out in the table below. Corresponding information is not yet available on this basis for 2011.
It should be noted that Revenue Sheriffs, County Registrars or their officers operate for the purposes of enforcement of tax debt within certain geographical boundaries known as a "bailiwick" which equates geographically with "county". Data on the net receipts of some taxes can be linked to bailiwicks to provide an estimated breakdown of receipts on a county basis and this had been done for the purpose of the question.
It should also be noted that the liability of a trader to VAT is generally dealt with by reference to the location of the trader's registered office even though the economic activity may be carried on in another county.
Breakdown of net receipt for VAT for the year 2010
|
County |
2010 |
|
€m |
|
|
Carlow |
49.2 |
|
Cavan |
64.0 |
|
Clare |
91.2 |
|
Donegal |
96.9 |
|
Galway |
230.4 |
|
Kerry |
133.1 |
|
Kildare |
287.0 |
|
Kilkenny |
79.9 |
|
Laois |
56.0 |
|
Leitrim |
18.3 |
|
Limerick |
169.9 |
|
Longford |
20.0 |
|
Louth |
160.9 |
|
Mayo |
112.5 |
|
Meath |
185.2 |
|
Monaghan |
47.6 |
|
Offaly |
51.0 |
|
Roscommon |
39.5 |
|
Sligo |
40.9 |
|
Tipperary |
127.8 |
|
Waterford |
88.0 |
|
Westmeath |
71.5 |
|
Wexford |
115.9 |
|
Wicklow |
138.2 |
|
Dublin |
5,373.5 |
|
Cork |
743.0 |
|
Other/foreign |
459.6 |
|
Total |
9,051.0 |
153. Deputy Michael McGrath asked the Minister for Finance if he has requested Revenue to begin preparation for the collection of a residential property tax; if he has asked his Department or the Economic and Social Research Institute to examine the potential consumer behavioural impact of a residential property tax; if he is currently examining residential stamp duty and the non-principle private residence tax as part of his plans in respect of a property tax; if he intends to hold discussions with relevant parties on the implications of a property tax for the residential housing market; and if he will make a statement on the matter. [42750/12]
Amharc ar fhreagraThe Government decided in July that the Revenue Commissioners should administer the forthcoming property tax. I am advised by the Revenue Commissioners that they are actively planning for the implementation of the tax. This includes preparing a specification for the operation of the tax, assessing the impact on Revenue systems of its implementation, assessing the IT and other infrastructure requirements, identifying the work involved in establishing a property and property owners register, etc. Work is also underway to prepare the necessary legislation. Revenue is engaging with a wide range of Government Departments and agencies and other service providers in planning the implementation of the tax.
Other than the decisions to introduce the tax and that it will be administered by Revenue, no further policy decisions have been finalised by the Government. However, potential behavioural impacts will be analysed, as is customary when Budget changes are being considered.
I understand that the ESRI provided assistance to the Inter-Departmental Expert Group on Property Tax, chaired by Dr. Don Thornhill. The Group's report has been presented to the Minister for the Environment, Community and Local Government and will be considered by the Government in due course.
In many countries an annual recurring property tax co-exists with a tax on property transactions, such as a Stamp Duty. Statistical information derived from the Stamp Duty system was fundamental to the establishment of the new property price register.
The Non-principal Private Residence (NPPR) charge is a matter for the Minister for the Environment, Community and Local Government. However, the interrelationship of that charge with the property tax will be an issue for consideration in the context of Budget 2013.
The ability of individuals to pay the tax, and other related factors, will be taken into account as part of the Government's deliberations. My officials will analyse the potential impact of the proposed tax, and will examine submissions in this regard, including pre-Budget submissions.
154. Deputy Stephen S. Donnelly asked the Minister for Finance if he will clarify and expound on recent media comments (details supplied) that indicated the National Asset Management Agency faces a loss of up to €15 billion; and if he will make a statement on the matter. [42869/12]
Amharc ar fhreagraAs the Deputy is aware NAMA's expectation is that over its projected ten-year life, it will redeem, at minimum, the Senior Bonds issued as consideration for acquired loans in addition to recovery of its carry costs and the working and development capital expenditure it has advanced to debtors. I have no reason to doubt the Agency's view that it will achieve its targets over its lifetime.
155. Deputy Simon Harris asked the Minister for Finance if he will outline in tabular form the commitments in the Programme for Government pertaining to his ministerial portfolio; the current status of these commitments in terms of implementation; and if he will make a statement on the matter. [42879/12]
Amharc ar fhreagraThe Programme for Government contains 54 commitments within the remit of the Department of Finance and significant progress has been made in implementing these commitments: 27 commitments have been implemented, 21 are on-going or underway, one is now a matter for the independent Fiscal Council, while 5 are under review or cannot be introduced in the manner in which they are stated in the Programme for Government. I would note that the commitments identified as on track are well advanced. The Department of the Taoiseach published the Programme for Government Annual Report 2012 which outlined progress for all Programme for Government Commitments to March and is available at www.taoiseach.gov.ie. Since the publication of that report there has been further progress in a number of areas including the publication of the Personal Insolvency Bill, the publication of a report of the regional meetings on credit supply, the on-going move toward decreasing Government support to the banks, the publication of the Commission on Credit Unions' final report, the publication of the Fiscal Responsibility Bill, the on-going work to implement a property tax, and continuing augmentation of the skill set of the Department.
|
Commitment |
Status |
|
We will seek a reduced interest rate as part of a credible re-commitment to reducing Government deficits to ensure sustainability of our public finances. |
Achieved |
|
We will re-commit to structural reforms required to accelerate growth, job creation and debt sustainability. |
On Track |
|
We will attach the utmost priority to avoiding further down-grades to our sovereign credit rating by setting further capital spend by the State on bank recapitalisation at a level that is consistent with national debt sustainability. |
Achieved |
|
In this regard, we will defer further recapitalisation of the banks until the solvency stress tests are complete and known to the new Government. Earlier recapitalisation in advance of publication of the stress tests will not contribute to market stability and confidence. |
Achieved |
|
We remain committed to a smaller banking system that reduces its reliance on funding from the Irish and European Central Banks and volatile market sources. In order, however, to limit further calls on the State to cover bank losses from distressed asset sales, bank de-leveraging must be paced to match the return of more normal market conditions and demand for bank assets. |
On track |
|
As an interim measure, we will seek to replace emergency lending to our banks with medium-term, affordable, official financing in a way that can restore confidence among other potential lenders in the liquidity position of our banks. |
On track |
|
We will end further asset transfers to NAMA, which are unlikely to improve market confidence in either the banks or the State. |
Achieved |
|
We will ensure that an adequate pool of credit is available to fund small and medium-sized businesses in the real economy during the re-structuring and down-sizing programme. |
On track |
|
We will introduce a comprehensive special resolution regime for dealing with bank insolvencies. |
Achieved |
|
The Government accepts that enabling provisions in legislation may be necessary to extend the scope of bank liability restructuring to include unsecured, unguaranteed senior bonds. |
Review |
|
The new Government will seek to dispose of the public stakes in the banks as soon as possible at the best possible return to the taxpayer. |
On track |
|
We will create an integrated decision making structure among all relevant State Departments and Agencies to replace the current fragmented approach of State bodies in dealing with the financial crisis. |
On track |
|
The new Government will re-structure bank boards and replace directors who presided over failed lending practices. We will ensure that the regulator has sufficient powers of pre-approval of bank directors and senior executives. To expedite this change-over we will openly construct a pool of globally experienced financial services managers and directors to be inserted into key executive and non-executive positions in banks receiving taxpayer support. |
On track |
|
We will insist on the highest standards of transparency in the operation of NAMA, on reduction in the costs associated with the operation of NAMA, and that decision-making in NAMA does not delay the restoration of the Irish property market. |
On track |
|
Once the banking sector has been restored and is functioning effectively, we will introduce a bank levy based on the size of a bank’s liabilities (other than shareholder capital). |
Review |
|
We will establish a Strategic Investment Bank |
Achieved |
|
We recognise the important role of Credit Unions as a volunteer co-operative movement and the distinction between them and other types of financial institutions. In Government, we will establish a Commission to review the future of the credit union movement and make recommendations in relation to the most effective regulatory structure for Credit Unions, taking into account their not-for-profit mandate, their volunteer ethos and community focus, while paying due regard to the need to fully protect depositors, savings and financial stability. |
Achieved |
|
We support the future development of the IFSC as a source of future employment growth, subject to appropriate regulation. We will establish a task force on the future of the financial services sector to maximise employment opportunities in financial services for staff leaving employment as a result of downsizing. |
On track |
|
We will ensure that the investigations into failures in the banking system are adequately resourced. |
On track |
|
All remuneration schemes at banks subject to state support will undergo a fundamental review to ensure an alignment of interest between banks, their staff and the taxpayer. |
On track |
|
Cut the 13.5% rate of VAT to 12% up to end 2013 |
Achieved |
|
We will exempt from VAT service companies that export more than 90% of their output. |
Not being pursued in line with legal advice |
|
Subject to a cost benefit analysis, we will amend the RD tax credit regime to make it more attractive and accessible to smaller businesses, in the following ways: companies with RD expenditures of under €100,000 will be entitled to full tax credit on those entire expenditures as opposed to just the increment over the base year, with marginal relief for companies with expenditure just over €100,000, we will allow companies to offset the RD credit against employers' PRSI as an alternative to corporation tax, to cut down on red tape in the applications process, companies in receipt of a Research, Technology and Innovation (RTI) grant from one of the development agencies will be automatically deemed as entitled to the RD tax credit. |
On track |
|
We will direct the Revenue Commissioners to examine the feasibility of introducing – on a revenue neutral basis – a Single Business Tax for micro enterprises (with a turnover of less than €75,000 per annum) to replace all the existing taxes on sole traders and small businesses to cut compliance costs and make starting a business much less daunting. |
Review |
|
We will create a Strategic Investment Bank that will become a provider of finance to large capital projects, a conduit for venture capital and a lender to SMEs. |
Achieved |
|
The Government will put in place a parallel, commercially-financed investment programme in key networks of the economy to support demand and employment in the short term, and to provide the basis for sustainable, export-led jobs and growth for the next generation. Streamlined and restructured semi-States will make significant additional investments, over and above current plans, over the next four years in "next generation" infrastructures in energy, broadband, forestry and water. These investments – and the accompanying semi-state restructuring process – will be financed and pro-actively managed by a New Economy and Recovery Authority (NewERA), which will absorb the National Pension Reserve Commission. |
Achieved |
|
We believe it is appropriate, in order to enhance international credibility, to stick to the aggregate adjustment as set out in the National Recovery Plan for the combined period 2011-2012. |
Achieved |
|
In preparation for Budget 2013, we will review progress on deficit reduction, and draw up a plan which will achieve the objective of reaching the 3% of GDP target for the General Government Deficit by the target date of 2015. |
Achieved |
|
Should Ireland succeed in obtaining a lower interest rate on its loans, this should be offset against the aggregate adjustment required over the term of the programme. |
Achieved |
|
We believe that achieving the 3% of GDP deficit target should be seen as an intermediate step in the process of restoring the public finances, and that further reductions in the general government deficit as a share of national income will be required thereafter |
On track |
|
As part of our fiscal strategy the new Government will: Keep the corporate tax rate at 12.5% |
Achieved |
|
Maintain the current rates of income tax together with bands and credits. We will not increase the top marginal rates of taxes on income. |
Achieved |
|
We will reduce, cap or abolish property tax reliefs and other tax shelters which benefit very high income earners. |
Achieved |
|
We will also ensure the implementation of a minimum effective tax rate of 30% for very high earners. |
Achieved |
|
Consider, arising from the previous Government’s deal with the IMF, various options for a site valuation tax. Any site valuation tax must take into account the significant number of households in mortgage distress and provide local government with a reliable stream of revenue |
On track |
|
We will limit the top rate of VAT to 23% |
Achieved |
|
We will review the Universal Social Charge |
Achieved |
|
We will ensure that tax exiles make a fair contribution to the Exchequer |
Achieved |
|
We will establish an independent Fiscal Advisory Council (FAC), separated from fiscal decision-makers in government, that would undertake official fiscal macroeconomic projections and monitoring. Its functions would include identifying and advising on cyclical and counter-cyclical fiscal policies and structural deficits; the cyclical or temporary nature of particular revenues; and the need to maintain an appropriate and effective tax base. The Fiscal Advisory Council will be independent of Government and will report to the Dáil and the public. |
Achieved |
|
The modelling assumptions and inputs of the Fiscal Advisory Council will, as far as possible, be open to public scrutiny and its outputs would be freely available to external bodies, including in particular, the opposition parties. |
Matter for the Fiscal Council following their establishment |
|
We will open up the Budget process to the full glare of public scrutiny in a way that restores confidence and stability by exposing and cutting failing programmes and pork barrel politics. |
On track |
|
We will reform the Department of Finance by bringing in new leadership and skills to restore its capacity and credibility in financial and macroeconomic management. Specifically, we will make an external appointment of an economist of international repute to head up the Department’s Budget and Economic Policy division. |
On track |
|
We will bring new talent and skills into the Department of Finance. |
On track |
|
Tax incentives for private hospital developments will cease. |
Achieved |
|
Increasing mortgage interest relief to 30% for First Time Buyers in 2004-08 (from the current sliding scale of 20% to 25% depending on the year the mortgage was taken out), financed in part by bringing forward the abolition of relief for new buyers from June 2011. |
Achieved |
|
Directing any mortgage provider in receipt of State support to present Government with a plan of how it intends to cut its costs, over and above existing plans, in a fair manner by a sufficient amount to forego a 25 basis point increase on their variable rate mortgage. |
Achieved |
|
Introducing a two year moratorium on repossessions of modest family homes where a family makes an honest effort to pay their mortgage. |
On track |
|
We will ensure that the Central Bank and the Financial Regulator supervise credit institutions' mortgage lending practices comprehensively and intensively. |
On track |
|
Where credit institutions fail to adequately control mortgage lending risks, the Central Bank will impose loan-to-value ceilings on mortgages, caps on loan-to income multiples, limits on the term of new mortgages, and more rigorous procedures for verifying borrowers' incomes. |
On track |
|
Increase the penalty for tobacco smuggling for commercial purposes and provide robust detection measures to counteract such smuggling. |
Achieved |
|
Seek to combat drug supplies at source by providing x-ray scanners at major ports; greater patrols along coastline and increasing presence of Customs officers at smaller airports. |
On track |
|
Tightly regulate moneylenders. |
Achieved |
|
We will accelerate Capital Allowances on software purchases against income tax and corporation profits tax from 8 to 3 years subject to a cost benefit analysis. |
On track |
|
We will exempt farm diesel from further increases in the carbon tax. |
Achieved |
156. Deputy Pearse Doherty asked the Minister for Finance the cost to the Exchequer of raising the 20% bank threshold for married couples/one income and one parent families to the threshold for married couples of two incomes, which is currently €65,500. [42911/12]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the full year cost to the Exchequer, estimated by reference to 2013 incomes, of increasing the standard rate band for single income married couples and one parent families to the threshold of €65,600 which currently operates for dual income married couples, would be approximately €695 million. However, given the current band structures, major issues would need to be resolved as to how in practice such standard rate band changes could be integrated into the current system and how this would affect the relative position of different types of income earners.
This figure is an estimate from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. It is, therefore, provisional and likely to be revised.
157. Deputy Michael McCarthy asked the Minister for Finance the number of political parties in opposition that have asked his Department to cost their pre-budget proposals and or cost their policies; if he will name the parties in question; and if he will make a statement on the matter. [42912/12]
Amharc ar fhreagraI assume the Deputy is referring to Budget 2013 and on that basis I can advise him that I have received no such requests to date.
158. Deputy Michael Colreavy asked the Minister for Finance if full banking services such as a night safe and the lodging of cheques is available to customers of AIB due to the contract the bank has signed with An Post to continue banking services at local post offices; and if he will make a statement on the matter. [42986/12]
Amharc ar fhreagraAIB has informed me that it is working with An Post on expanding its existing relationship to offer enhanced services, specifically cheque lodgements for personal and business customers, in c. 100 Post Offices in branch closure locations. The enhanced service does not include access to night safe facilities in Post Offices. Night safe facilities will continue to remain available in AIB's remaining network of branches. However the bank informs me that there are decreasing levels of usage of night safe facilities by customers. In addition, AIB is working with An Post to explore the potential of offering this enhanced service in other An Post locations in surrounding towns to closure locations where AIB does not have a presence.
159. Deputy Michael Colreavy asked the Minister for Finance if banking services will be made available to older residents of Collooney, County Sligo, who do not have easy access to Sligo Town; and if he will make a statement on the matter. [42988/12]
Amharc ar fhreagraI assume that the Deputy is referring to the closure of the local AIB branch in Collooney. While I regret the closure of any bank branches, the Deputy will no doubt appreciate that the provision of services by banks, including the location of branches, is a commercial decision for the banks. Notwithstanding the fact that the State is a significant shareholder in some banks, it is imperative that the banks are run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State. The Deputy might wish to note that there is a provision in the Central Bank’s "Consumer Protection Code" which imposes certain obligations on banks that have decided to close, merge or move a branch in a different location. The relevant provision states:
Where a credit institution plans to close, merge or move a branch it must notify the Central Bank immediately and provide at least two months notice to affected consumers to enable them to make alternative arrangements. The credit institution must ensure all business of the branch is properly completed prior to the closure, merger or move, or alternatively inform the consumer of how continuity of service will be provided. The wider community must be informed, in advance, through notification in the local press.
The advance notification requirement is designed to give existing consumers the necessary time to choose another credit institution.
The Deputy will appreciate that it is an inevitable, but unfortunate, consequence of the necessary restructuring of the banking system – and return to viability - that branches in certain towns and villages will be closed. I appreciate that the branch closures will have an impact on certain towns and villages, but I do expect that any bank involved will work with their customers to ensure that they minimise the impact of the closures.
161. Deputy Michael McGrath asked the Minister for Finance the number of cases, if any, in which the National Assets Management Agency has undertaken any form of disciplinary action in respect of any of its employees; and, in each case, if he will provide details of the reasons such disciplinary action was undertaken and the outcome of same. [43014/12]
Amharc ar fhreagraI am advised that staff of the National Asset Management Agency (NAMA) are employees of the National Treasury Management Agency (NTMA) who are assigned as officers of NAMA under the NAMA Act. In keeping with their obligations to their staff, including obligations under the Data Protection Acts, NTMA has been legally advised not to comment publicly on disciplinary matters.
162. Deputy Patrick O'Donovan asked the Minister for Finance the position regarding a request for a refund under a Med 1 claim in respect of a person (details supplied) in County Wexford; and if he will make a statement on the matter. [43035/12]
Amharc ar fhreagraI am advised by The Revenue Commissioners that there are no outstanding claims from the person concerned requesting a refund under Med 1. The last claim was for 2011, which was submitted on the 24th January 2012. This claim was processed on 14th February 2012. The refund in the form of a cheque issued the following day, which was subsequently cashed.
163. Deputy Dominic Hannigan asked the Minister for Finance further to Parliamentary Question No. 118 of 2 October 2012, if this company may continue to trade if they are not regulated; and if he will make a statement on the matter. [43127/12]
Amharc ar fhreagraAs I mentioned in reply to Parliamentary Question No 118 of 2 October 2012, I have been advised by the Central Bank that the company referred to by the Deputy is not currently regulated by the Bank. The Bank is currently engaging with debt management firms to assess if their business models fall within the scope of the European Communities (Payment Services) Regulations 2009 regarding the provision of payment services or Part V of the Central Bank Act 1997 (as amended) regarding the provision of money transmission services. I have received Government approval to bring forward an amendment, at the Committee Stage of the Central Bank (Supervision and Enforcement) Bill 2011, to provide for a regulatory regime for debt management and debt advice companies.
The Central Bank has also advised me that all alleged instances of unauthorised activity that come to the attention of the Bank are investigated in full. However, due to the confidentiality obligations set out in section 33AK of the Central Bank Act, 1942, as amended, the Bank is not in a position to disclose the details of any investigation it undertakes.
164. Deputy Mary Mitchell O'Connor asked the Minister for Finance if his attention has been drawn to the harsh treatment of those struggling with mortgage repayments by banks especially as compared to those who are severely in arrears; and if he will make a statement on the matter. [43159/12]
Amharc ar fhreagraAs the Deputy will be aware, that the Government is very conscious of the difficulties some homeowners are facing in meeting their mortgage commitments. The Central Bank, both from a consumer protection and prudential regulation perspective, has a very significant role to play in addressing the problem of mortgage arrears. With regard to consumers in arrears or in danger of going into financial difficulty and/or concerned about going into mortgage arrears, the revised Code of Conduct on Mortgage Arrears (CCMA) offers increased protections to these consumers. This revised code builds on the provisions of the previous version, but includes more detailed requirements, not least the establishment of a formal Mortgage Arrears Resolution Process (MARP) and also that pre-arrears cases must be treated in accordance with the MARP.
The Central Bank has also published a guide for consumers on mortgage arrears 'Mortgage Arrears – A Consumer Guide to Dealing with your Lender' and this is available on the Central Bank website.
In addition, the Report of the Inter-Departmental Working Group on Mortgage Arrears (the 'Keane Report') was published late last year and the Government is now actively implementing the main recommendations contained in that report.
In that context, a number of significant milestones have now been achieved:-
The Personal Insolvency Bill was approved by Government and published last June and the Committee stage of the Bill was passed by the Dáil last month; The Minister for Housing and Planning has formally launched the "mortgage to rent" scheme on a nationwide basis; Lenders have now provided details to the Central Bank on their proposed for bearance and loan modification options and some forbearance measures have been introduced on a pilot basis with a further roll out later in the year; Also an extensive independent mortgage advice framework has now been put in place by the Minister of Social Protection comprising (i) an enhanced website www.keepingyourhome.ie (ii) a Mortgage Arrears information helpline, and (iii) the provision of free independent 'one-to-one' professional financial advice to borrowers when considering a long term forbearance/resolution offer from their lender. The list of accountants providing this service is located on the www.keepingyourhome.ie website.
It should be noted that the vast majority of home owners continue to meet their mortgage obligations. However the Government remains very committed to progress measures to assist genuine mortgage holders in difficulty or who may go into difficulty with their mortgage commitments. The Government committee on mortgage arrears, which is chaired by An Taoiseach, continues to meet and it is the intention of Government to ensure that those mortgage holders in genuine difficulty will receive appropriate assistance and a high priority has been assigned by Government to the implementation of this broad range of measures to assist those experiencing difficulty on their mortgage across the relevant Departments and agencies.
