Tuesday, 16 Oct 2012

Written Answers Nos. 156-178

Bank Charges

Ceisteanna (156)

Pat Deering

Ceist:

156. Deputy Pat Deering asked the Minister for Finance the reason persons borrowing money from banking institutions are liable for the lenders solicitor's fee; and his plans to review same. [44110/12]

Freagraí scríofa

Minister for Finance

I, as Minister for Finance have no statutory role in relation the issues raised by the Deputy. It is a commercial matter for the bank concerned. However, I have been advised by the Central Bank that, under the Consumer Protection Code, a regulated entity must act honestly, fairly and professionally in the best interests of its customers and the integrity of the market. Furthermore, the Code requires a regulated entity to make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer and, in this regard, provision 4.54 of the Code states that:

"Prior to providing a product or service to a consumer, a regulated entity must:

a) provide the consumer, on paper or another durable medium, with a breakdown of all charges, including third party charges, which will be passed on to the consumer; and

b) where such charges cannot be ascertained in advance, notify the consumer that such charges will be levied as part of the transaction.

Section 149 of the Consumer Credit Act 1995, as amended, requires a credit institution to notify the Central Bank of every proposal to increase a previously notified charge or to impose any charge in relation to the provision of a service to a customer that has not been previously notified to the Central Bank. However, third party charges such as legal fees which are being passed on to a customer are not subject to the provisions of Section 149 of the Act.

Tax Reliefs Availability

Ceisteanna (157, 158)

Robert Dowds

Ceist:

157. Deputy Robert Dowds asked the Minister for Finance if he will outline the requirements under the VRT and VAT tax relief scheme for drivers and passengers with disabilities regarding persons from whom a used car may be bought to qualify for the scheme, that is, authorised dealers. [44151/12]

Robert Dowds

Ceist:

158. Deputy Robert Dowds asked the Minister for Finance if he would consider loosening the restrictions on persons from whom used cars may be bought to avail of the VRT and VAT tax relief scheme for drivers and passengers with disabilities, as long as the seller and buyer are tax compliant. [44152/12]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 157 and 158 together.

I am advised by the Revenue Commissioners that an authorised dealer is a person who is authorised under section 136 of the Finance Act 1992 (as amended) “to manufacture, distribute, deal in, deliver, store, repair or modify unregistered vehicles and to convert registered vehicles ”. Authorisation brings a number of responsibilities concerning the management and record keeping in relation to vehicles, responsibilities that are subject to control and scrutiny by the Commissioners.

Because of the significant amount of relief from both VRT and VAT available to purchasers of vehicles under the Disabled Drivers and Passengers scheme, it is appropriate that vehicles provided under this scheme should be provided by authorised dealers to facilitate the monitoring of various elements of the scheme.

There are no plans to change the current regulations regarding authorisation.

Mortgage Interest Relief Extension

Ceisteanna (159)

Clare Daly

Ceist:

159. Deputy Clare Daly asked the Minister for Finance if he will extend the mortgage interest relief scheme to home owners who have to rent out their own only property. [44227/12]

Freagraí scríofa

Minister for Finance

The position is that mortgage interest relief is only available in respect of interest paid by an individual on a loan used by that individual for the purchase, repair, development or improvement of his/her sole or main residence. Mortgage interest relief will not be available on interest paid on a loan taken out on or after 1 January 2013. Given the current budgetary constraints, I have no plans to widen the scope of the relief to cater for people who are renting out their property. However, it should be noted that an individual who rents out their residential property may be allowed a deduction, subject to certain conditions, in computing the taxable rents from that letting of 75% of the interest accruing on monies borrowed to purchase, improve or repair that property.

Tax Reliefs Availability

Ceisteanna (160)

Finian McGrath

Ceist:

160. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding transport for disabled persons [44269/12]

Freagraí scríofa

Minister for Finance

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of a car adapted for the transport of a person with specific severe and permanent physical disabilities, to those who meet certain disability criteria. The disability criteria for eligibility for the tax concessions under this scheme are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. To get the Primary Medical Certificate, an applicant must be severely and permanently disabled and satisfy one of the following conditions:

a) be wholly or almost wholly without the use of both legs;

b) be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

c) be without both hands or without both arms;

d) be without one or both legs;

e) be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

f) have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

If the Primary Medical Certificate is refused, the person may appeal the refusal to the Disabled Drivers Medical Board of Appeal, National Rehabilitation Hospital, Rochestown Avenue, Dun Laoghaire, Co. Dublin. I would point out that the Medical Board of Appeal is independent in the exercise of its functions.

In relation to where a vehicle may be purchased, I am advised by the Revenue Commissioners that under current Regulations, a vehicle must be purchased from an authorised dealer. An authorised dealer is a person who is authorised under section 136 of the Finance Act 1992 (as amended) “to manufacture, distribute, deal in, deliver, store, repair or modify unregistered vehicles and to convert registered vehicles ”. Authorisation brings a number of responsibilities concerning the management and record keeping in relation to vehicles, responsibilities that are subject to control and scrutiny by the Commissioners.

Because of the significant amount of relief from both VRT and VAT available to purchasers of vehicles under the Disabled Drivers and Passengers scheme, it is appropriate that vehicles provided under this scheme should be provided by authorised dealers to facilitate the monitoring of various elements of the scheme.

It is not possible to avail of the scheme if a vehicle was purchased privately.

Tax Collection

Ceisteanna (161)

Kevin Humphreys

Ceist:

161. Deputy Kevin Humphreys asked the Minister for Finance if the Revenue Commissioners are responsible for enforcement and collection of PRSI on rental incomes; the number of landlords that were audited for compliance on paying PRSI on their rental income in each year from 2007 to 2011; if Revenue liaise with the Private Residential Tenancy Board and other stakeholders such as local authorities to ensure PRSI is paid on such income; and if he will make a statement on the matter. [44621/12]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that they collect PRSI on behalf of the Department of Social Protection. The collection is integrated with the collection of PAYE in the case of employees, and with the self assessment system in the case of other taxpayers. Landlords are expected to include tax USC and PRSI with their annual return of income and pay the appropriate amount. Revenue selects cases for intervention based on the presence of various risk indicators and other information available. This targeted approach is supported by Revenue’s Risk Evaluation Analysis and Profiling System (REAP) which contains considerable information on all self-assessed taxpayers, including taxpayers with rental income.

Projects, specifically aimed at investigating landlords, are regularly undertaken in all Revenue regions with a view to monitoring the rental sector. Such projects may include: Identifying cases where income would appear to be understated vis a vis. properties held; Checking the Forms Rent 1; Following up on rent subsidy payments made by the Department of Social Protection; Student accommodation; Investigations in geographical areas with known high levels of rental properties.

Arising out of these projects, some cases are referred for further investigation and/or for audit. The following table shows the number of audits and the related yield across all tax heads, business and personal, for the NACE code relating to the letting of property, since 2007:

Year	No. of Audits	Yield*
2007	781	€48,797,735
2008	669	€32,000,926
2009	722	€32,177,973
2010	717	€36,994,633
2011	908	€35,107,472

*Yield from all income sources, not just rental income.

While all liability is computed and collected (including Income Tax, PRSI and USC) statistics under each specific heading are not separately available.

I am further advised by the Revenue Commissioners that these figures do not include audits in relation to taxpayers in other sectors where rental income may be a factor.

Full database information from the Private Residential Tenancies Board is available to Revenue to assist in risk analysis and in the determination of the deduction allowable against rental income of interest paid on loans used for the purchase, improvement or repair of residential premises in accordance with Section 97 (2I)(a)&(b) of the Taxes Consolidation Act 1997.

Under Section 891(b) of the Taxes Consolidation Act 1997, all information regarding payments made by local authorities, the Department of Social Protection and the HSE is also available to Revenue for the purpose of data matching and risk analysis.

Tax Rebates

Ceisteanna (162)

John O'Mahony

Ceist:

162. Deputy John O'Mahony asked the Minister for Finance when a person (details supplied) in County Mayo will receive a decision on their application for a rebate for setting up their new business; and if he will make a statement on the matter. [44076/12]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that an application for a repayment of tax has not been received from the taxpayer in question. The individual concerned should make direct contact with his local Tax District office, based at Michael Davitt House in Castlebar, with a view to progressing the matter to a satisfactory conclusion.

VAT Rates Application

Ceisteanna (163)

John Lyons

Ceist:

163. Deputy John Lyons asked the Minister for Finance if he will explain the reason VAT is applied to carbon taxes in household utility bills; and if he will make a statement on the matter. [44081/12]

Freagraí scríofa

Minister for Finance

The amount on which VAT is chargeable, in accordance with section 37(1) of the Value-Added Tax Consolidation Act 2010, is the total consideration receivable by the supplier, “including all taxes, commissions, costs and charges whatsoever” but not including the VAT itself. VAT is governed by the EU VAT Directive, with which Irish VAT law must comply. Article 78 of the VAT Directive provides that the taxable amount shall include “taxes, duties, levies and charges, excluding the VAT itself”.

In this respect, where a supply of service, such as a gas bill, includes carbon tax, VAT law dictates that VAT should be calculated on the carbon tax element of the bill as well as the charge for the service. The same situation applies in the case of other excises, including for example excises on petrol, auto-diesel, tobacco and alcohol products.

Guidance in relation to the VAT treatment of the total consideration receivable by a supplier is set out in the VAT Guide. This publication is available on the Revenue website at www.revenue.ie.

Tax Reliefs Availability

Ceisteanna (164)

Jack Wall

Ceist:

164. Deputy Jack Wall asked the Minister for Finance the position regarding a primary certificate in respect of a person (details supplied); and if he will make a statement on the matter. [44084/12]

Freagraí scríofa

Minister for Finance

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of a car adapted for the transport of a person with specific severe and permanent physical disabilities, to those who meet certain disability criteria. The disability criteria for eligibility for the tax concessions under this scheme are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. To get the Primary Medical Certificate, an applicant must be severely and permanently disabled and satisfy one of the following conditions:

a) be wholly or almost wholly without the use of both legs;

b) be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

c) be without both hands or without both arms;

d) be without one or both legs;

e) be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

f) have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

If the Primary Medical Certificate is refused, the person may appeal the refusal to the Disabled Drivers Medical Board of Appeal, National Rehabilitation Hospital, Rochestown Avenue, Dun Laoghaire, Co. Dublin. I would point out that the Medical Board of Appeal is independent in the exercise of its functions.

In relation to where a vehicle may be purchased, I am advised by the Revenue Commissioners that under current Regulations, a vehicle must be purchased from an authorised dealer. An authorised dealer is a person who is authorised under section 136 of the Finance Act 1992 (as amended) “to manufacture, distribute, deal in, deliver, store, repair or modify unregistered vehicles and to convert registered vehicles ”. Authorisation brings a number of responsibilities concerning the management and record keeping in relation to vehicles, responsibilities that are subject to control and scrutiny by the Commissioners.

Because of the significant amount of relief from both VRT and VAT available to purchasers of vehicles under the Disabled Drivers and Passengers scheme, it is appropriate that vehicles provided under this scheme should be provided by authorised dealers to facilitate the monitoring of various elements of the scheme.

It is not possible to avail of the scheme if a vehicle was purchased privately.

Customs and Excise Controls

Ceisteanna (165)

Simon Harris

Ceist:

165. Deputy Simon Harris asked the Minister for Finance the number of customs enforcement officers allocated to combat illegal cigarette smuggling here; the locations at which they are based; the number in each location; and if he will make a statement on the matter. [44154/12]

Freagraí scríofa

Minister for Finance

I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax, and for tackling the illicit trade in cigarettes and tobacco products, that they are a fully integrated tax and customs administration and that it is not possible to disaggregate resources deployed exclusively at any given time on policing illegal cigarette smuggling. Revenue currently has over 2,000 staff engaged on activities that are dedicated to target and confront non-compliance. These front-line activities include anti-smuggling and anti-evasion, investigation and prosecution, audit, assurance checks, anti-avoidance and debt collection. Revenue has an enforcement presence at all key airports and ports and at other strategic locations throughout the State. Enforcement strength at particular locations is regularly augmented with additional personnel on a risk-assessment basis, or when particular operations are taking place. Revenue enforcement officers also target the illicit tobacco trade at the post-importation level at inland locations.

The Deputy will appreciate that for reasons of operational sensitivity the Commissioners are not in a position to provide details of enforcement deployment at any given location. The Deputy will be aware that Revenue’s overall staff numbers have been reduced over the past two years in the context of Government policy on civil service numbers. However, the Revenue Commissioners assure me that their enforcement resources have been prioritised and are reinforced as necessary for particular operations.

Revenue employs a broadly based strategy in order to intercept illegal tobacco product and to prosecute those involved in the trade. This involves the optimal deployment of enforcement resources at points of importation and inland through the use of risk analysis and profiling methods and the employment of modern detection technologies. A key element in this strategy is the development and sharing of intelligence between enforcement agencies at a national, EU and international level. Revenue enforcement officers target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises, in order to disrupt the internal distribution network for illicit tobacco.

In 2011, a total of 109.08m cigarettes and 11,158 kgs of tobacco, with a retail value of €49.95m, was seized by Revenue. There were 160 court convictions for cigarette smuggling and illegal selling of tobacco products, resulting in 45 custodial sentences, some of which were suspended, 10 community service orders and €254,650 in fines imposed.

In 2012 to date, a total of 89.8m cigarettes and 3,402 kgs of tobacco, with a retail value of €41.76m, have been seized. There have been 101 court convictions for cigarette smuggling and illegal selling of tobacco products, resulting in 41 custodial sentences, some of which were suspended, 3 community service orders and €174,550 in fines imposed.

Revenue avails of media reporting of major illegal tobacco seizures to remind persons tempted to buy cheap cigarettes from an irregular source of supply that there is a high possibility they are buying counterfeit goods, which provide an unknown set of health risks as the product is not the subject of quality control. The illegal tobacco trade also takes much needed funds from the exchequer, hurts legitimate trade and funds criminal activity.

Tax Residency Rules Review

Ceisteanna (166, 167, 168)

John Lyons

Ceist:

166. Deputy John Lyons asked the Minister for Finance the date on which the outcome of the public consultation on tax residence will be made known; if the recommendations of this review will be made in time to form part of Budget 2013 to ensure that tax exiles make a fair contribution to the Exchequer; and if he will make a statement on the matter. [44163/12]

John Lyons

Ceist:

167. Deputy John Lyons asked the Minister for Finance the number of submissions received in relation to the recent public consultation on tax residence rules; and if he will make a statement on the matter. [44164/12]

John Lyons

Ceist:

168. Deputy John Lyons asked the Minister for Finance his views on whether a test based on a persons centre of vital interests should be used when determining their tax residence; and if he will make a statement on the matter. [44165/12]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 166 to 168, inclusive, together.

The Programme for Government update in March 2012 confirmed the commitment to undertake a consultation process on residence issues in 2012 to inform preparation for possible further changes in 2013. I launched the public consultation on tax residence rules in May this year, wherein I invited interested parties to make submissions on possible revisions to the current residence rules for the taxation of individuals.

This consultation process has now concluded. A total of eight submissions have been received and these will be published in due course, as indicated when the consultation was announced. My officials are considering the submissions and will be advising me on possible further changes as part of the preparations for Budget 2013.

The Programme for Government indicated that, as part of its fiscal policy, the Government will ensure that “tax exiles” make a fair contribution to the Exchequer. In Budget 2012 I abolished the “citizenship condition” for payment of the Domicile Levy to ensure that individuals could not avoid the levy by renouncing their citizenship. I also stated that I intend to keep the contentious issue of the tax treatment of “tax exiles” (which is linked to the tax residence rules) under constant review.

While the application of the rules in particular circumstances is being considered, the taxation of individuals in the State is broadly in line with the system prevailing in most other OECD jurisdictions, that is to say —

(a) individuals who are resident in the State for tax purposes are taxable here on their worldwide income; and

(b) individuals who are not resident for tax purposes pay tax here only on income arising in the State and on income derived from working here.

The OECD model tax convention describes a ‘Centre of Vital Interest’ test as one of the criteria used to resolve the problem of dual residence of individuals. It refers to the place where the taxpayer's personal and economic relationships are closer. It is one of the criteria used as a “tie breaker” in Double Taxation Agreements to determine in which state an individual is resident. Specific mention was also made in the consultation document to its use as an additional criterion on other jurisdictions.

The application of the residence rules and all related matters are under consideration in the run up to Budget 2013.

Mortgage Interest Rates Issues

Ceisteanna (169)

Róisín Shortall

Ceist:

169. Deputy Róisín Shortall asked the Minister for Finance his views on the recent decision by Allied Irish Bank to increase the interest rates on their variable rate mortgages; if he has had any contact with the bank since the decision was made; and his views on whether this decision will further add to the problem of mortgage arrears. [44171/12]

Freagraí scríofa

Minister for Finance

The Deputy will be aware that the Bank’s policy in relation to interest rates is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. However, the Government is aware of the significant difficulties some homeowners are facing in meeting their mortgage obligations and it is committed to advancing appropriate measures to assist those mortgage holders who are experiencing real and genuine difficulty. In this regard, the Government is now actively implementing the main recommendations contained in the report of the Inter-Departmental Working Group on Mortgage Arrears.

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 forbearance 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 for 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.

The Government remains very committed to progressing these measures, which are in addition to existing supports such as the protections afforded by the Central Bank Code of Conduct on Mortgage Arrears, to assist genuine mortgage holders in difficulty and the Government sub-committee on mortgage arrears, which is chaired by An Taoiseach, continues to meet to ensure this receives priority attention across relevant Departments and agencies.

Departmental Expenditure

Ceisteanna (170)

Gerald Nash

Ceist:

170. Deputy Gerald Nash asked the Minister for Finance if he will provide details of any direct financial support provided to the Irish Banking Federation from his Department in the years 2008, 2009, 2010 and 2011; and if he will make a statement on the matter. [44208/12]

Freagraí scríofa

Minister for Finance

I, as Minister for Finance have no statutory role in relation to the work of the Irish Banking Federation. I have not provided financial support to the Federation during the period mentioned by the Deputy.

Departmental Staff Numbers

Ceisteanna (171)

Kevin Humphreys

Ceist:

171. Deputy Kevin Humphreys asked the Minister for Finance the number of staff members in his Department on secondment from the private sector or publicly controlled financial institutions whether bank or insurance companies; if he will list their current duties; the institution or business from which they transferred; their previous duties before secondment; the way his Department manages potential conflicts of interest; and if he will make a statement on the matter. [44265/12]

Freagraí scríofa

Minister for Finance

The following table sets out the number of staff members (twelve) in my Department who are currently on secondment from the private sector or publicly controlled financial institutions and the institutions or business they transferred from.

Institution	Number
AIB	6
Deloitte	2
PWC	2
KPMG	2
McCann Fitzgerald	1

They perform a wide range of specialised duties across the department and bring unique skills and experience to the department. All of the secondees are required to adhere to both the Official Secrets Act and the Ethics in Public Office Acts. To further limit the risk of any conflict of interest arising the secondees are prohibited from having any direct responsibility for their organisations workstreams operated in the department.

Departmental Staff Numbers

Ceisteanna (172)

Kevin Humphreys

Ceist:

172. Deputy Kevin Humphreys asked the Minister for Finance the number of staff members that have been seconded or transferred to the Revenue Commissioners in each year since 2007; the grade of same; if they came from within the public service or from the private sector; and if he will make a statement on the matter. [44274/12]

Freagraí scríofa

Minister for Finance

The Revenue Commissioners have provided me with the following information in response to the Deputy’s question. Details of staff who transferred to the Revenue Commissioners since 2007 are provided in the following table:

Grade	2007	2008	2009	2010	2011	To end Q3 2012
Assistant Secretary						1
Principal	2	5		1	1
Assistant Principal	9	11		1		1
Administrator Officer	1	1
Higher Executive Officer	20	17	1	3	3	1
Executive Officer	32	32		8	7	12
Staff Officer	7	1		2	2
Clerical Officer	78	52	3	28	7	1
Service Officer		1		1	1	2
Grand Total	149	120	4	44	21	18

The above table includes staff who transferred to Revenue from within the public service as a result of the decentralisation programme. It does not include thirty seven (37) staff who transferred to Revenue on head-for-head transfers.

In addition to the above there is one Higher Executive Officer currently seconded to the Revenue Commissioners from another public service body.

There were no secondments or transfers from the private sector to the Revenue Commissioners in the period. The Revenue Commissioners have recruited some staff from the private sector through open recruitment during this period.

Departmental Staff Recruitment

Ceisteanna (173)

Kevin Humphreys

Ceist:

173. Deputy Kevin Humphreys asked the Minister for Finance the number of new staff that have been recruited by the Revenue Commissioners in each year since 2007; the grade of same; his plans to recruit any new staff in each year to 2016; and if he will make a statement on the matter. [44275/12]

Freagraí scríofa

Minister for Finance

The Revenue Commissioners have provided me with the following information in response to the Deputy’s question. Details of staff who were recruited by the Revenue Commissioners from open competitions since 2007 are provided in the following table:

Grade	2007	2008	2009	2010	2011	To End Q3 2012
Secretary General Level (Commissioners)*		1				1
Assistant Secretary*	4	3			3	2
Principal		4		4	1	1
Assistant Principal	3	6		22		1
Solicitor	1	2		2		2
Statistician		3
Economist	1			1	1
Administrative Officer	14	14	4	25		8
Higher Executive Officer	6	18	1	1
Executive Officer	45	59	17
Staff Officer	7	7	1
Clerical Officer	256	130		12		1
Service Officer	9	6	3	3
Totals	346	253	26	70	5	16

* Following a Top Level Appointments Committee competition

A number of the staff recruited by open competition were existing Revenue staff.

The Office of the Revenue Commissioners undertakes regular workforce planning analyses to identify key posts and skills that require to be filled to enable the organisation to deliver on their current and developing strategies. The Revenue Commissioners are currently in discussions with the Department of Public Expenditure and Reform on its immediate and medium term resource requirements based on its most recent workforce plan. While I recognise the challenge the Government faces in reducing public service numbers generally, the effective operation of the revenue collection system is critical to the successful achievement of the Government’s objectives in the context of the EU/IMF Programme of Financial Support for Ireland. I would, therefore, be generally supportive of the resource case made by Revenue.

To address skills gaps and deficits that are emerging, Revenue has recently completed open recruitment competitions in the areas of Audit & Investigation and Information Technology. Where critical vacancies cannot be filled from within existing resources, or through redeployment from within the public sector, Revenue will seek sanction from the Department of Public Expenditure and Reform to fill vacancies by open recruitment. In the context of the need reduce public sector numbers and the probable availability of suitable staff from redeployment resource panels, it would not be possible to state exactly how many new staff Revenue will be in a position to recruit each year to 2016.

Banking Sector Issues

Ceisteanna (174)

Pearse Doherty

Ceist:

174. Deputy Pearse Doherty asked the Minister for Finance pursuant to the approval by the Competition Commissioner at the European Commission, of the State-aid provided to Bank of Ireland in 2009 and 2010, and specifically pursuant to paragraph 140 of the Decision N546/2009, if he will confirm the current market shares of Bank of Ireland in each of the four markets referred to in paragraph 140. [44281/12]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, the Bank of Ireland (BOI) was approved for State Aid under European Union Rules and the resulting decision was published as Decision number N546/2009 in the Official Journal of the European Union. The Decision was subject to BOI adhering to commitments as set out in the Annexes to the Decision. The commitment referred to in paragraph 140 concerns BOI providing a mail marketing service to a Relevant Competitor where the relevant competitor’s share of the market is less than 15% in at least one of the four markets for Relevant Products and BOI’s market share is above 30%.

The four Relevant Products and the most recent data available for BOI market shares are:-

PRODUCT	MARKET SHARE*
(i) Personal current accounts in Ireland	35%
(ii) Business current accounts in Ireland	36%
(iii) Personal & (iv) Business credit cards in Ireland	34%

* At February 2012

Bank Codes of Conduct

Ceisteanna (175, 176)

Pearse Doherty

Ceist:

175. Deputy Pearse Doherty asked the Minister for Finance pursuant to the approval by the Competition Commissioner at the European Commission, of the State-aid provided to Bank of Ireland in 2009 and 2010, and specifically pursuant to paragraph 155 of the Decision N546/2009, the way the commitment given in the following terms the IBF switching codes for personal and business customers will be placed on a statutory footing immediately, and it will be accompanied by an information campaign has been met. [44282/12]

Pearse Doherty

Ceist:

176. Deputy Pearse Doherty asked the Minister for Finance pursuant to the approval by the Competition Commissioner at the European Commission, of the State-aid provided to Bank of Ireland in 2009 and 2010, and specifically pursuant to paragraph 155 of the Decision N546/2009, the way the commitment given in the following terms, the National Consumer Agency will run a shop and switch public awareness campaign in relation to banking products and services has been met. [44283/12]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 175 and 176 together.

I have been advised by the Central Bank that, in July 2010, the Irish authorities in the context of the final decision of the European Commission on the restructuring of Bank of Ireland, committed to undertake several actions in order to improve competition on the Irish banking market. As part of this programme, Ireland committed to the implementation of a package of measures aimed at supporting competition in the Irish banking market. The Irish authorities agreed to meet, inter alia , the following commitments:

"a. The IBF [voluntary] switching codes for personal and business customers will be placed on a statutory footing immediately, and will be accompanied by an information campaign (to be carried out by the NCA and the IBF), and

b. A review of the provisions contained in the switching code, with a view to making any necessary enhancements, will be carried out by the Central Bank and concluded by end Q2 2012"

In December 2011, under the EU Commission decision (SA.33443) approving the Bank of Ireland revised restructuring plan, the Irish authorities committed to undertake a revised package of alternative measures in order to restore the competition in the Irish banking market by facilitating entry and expansion of competitors and enhancing the consumer protection in the financial sector. In particular, Ireland committed to carry out specific measures in order to enhance:

" (a) Customer mobility and protection (provision of information; transparency to facilitate consumer decision making; financial inclusion);

(b) Entry of competitors (electronic banking, SEPA migration, quality and availability of credit history information and reporting by banks);

(c) Corporate governance."

The specific commitment agreed in relation to switching is:

" The Central Bank of Ireland will:

(i) carry out a review of the provisions contained in the Code of Conduct on the Switching of Current Accounts,

(ii) ensure that any necessary changes to the Code of Conduct on the Switching of Current Accounts following its review will be published by end Q2 2012."

I am informed by the Central Bank that the obligation under the first part of the initial commitment was met with the publication, of the Code of Conduct on the Switching of Current Accounts with Credit Institutions (the Switching Code) on 1 October 2010.

In 2011, the Central Bank began its review of the Switching Code with a theme-based inspection and mystery shopping exercise (the 2011 Review). The inspection was aimed at assessing how well the switching process works in practice for consumers. The mystery shopping exercise was undertaken to determine the awareness and understanding of the Switching Code amongst frontline bank branch staff. The 2011 Review confirmed that once a consumer began the switching process, it generally ran smoothly.

In June 2012 the Central Bank published a Discussion Paper outlining the outcome of the review undertaken by the Bank on the operation of the Switching Code together with possible enhancements to the Switching Code as a result of that review. The Discussion Paper posed a number of questions to interested parties on issues connected with switching and how the Switching Code could be further enhanced or expanded to support the switching process. Interested parties were invited to respond the questions posed in this Discussion Paper by 30 September 2012. A total of 4 submissions were received in response to the Discussion Paper, all of which will be published on the Central Bank's website in the coming weeks. An analysis of responses is currently underway.

The Discussion paper can be found at:

http://www.centralbank.ie/regulation/poldocs/dispapers/documents/120622 discussion paper on switching.pdf

The National Consumer Agency have informed me that their new interactive banking comparisons were launched in October 2011 and the launch was supported by radio and online public awareness campaigns. A copy of the press release is available on the NCA website - http://corporate.nca.ie/eng/Media_Zone/Press%20Releases/banking-cost-comparison.html .

From April to June 2012, the National Consumer Agency ran a campaign to promote switching banking products. This campaign used press, radio and online public awareness activity. The NCA recently made a submission to the Central Bank's discussion paper on Code of Conduct on the Switching of Current Accounts with Credit Institutions which outlines their views on issues concerning switching of banking products.

Banking Sector Regulation

Ceisteanna (177)

Pearse Doherty

Ceist:

177. Deputy Pearse Doherty asked the Minister for Finance pursuant to the approval by the Competition Commissioner at the European Commission, of the State-aid provided to Bank of Ireland, Allied Irish Banks and Permanent TSB, the way standard variable rate mortgage borrowers in negative equity can switch to cheaper alternative lenders. [44284/12]

Freagraí scríofa

Minister for Finance

Bank of Ireland has been granted four state aid approvals between 2009 and 2011. These have been published by the European Commission in redacted form on its website under the decision numbers, N149/2009, N546/2009, SA.33216 and SA.33443. There is no reference in the State-aid documents to methods for standard variable rate mortgage borrowers in negative equity switching to cheaper alternative lenders.

However, in the State Aid approvals for Bank of Ireland published as N546/2009 and SA.33443 (2011/N) commitments were put in place for both the State and Bank of Ireland to implement market opening measures, which aim at decreasing the cost of entry for new competitors, or the cost of expansion for small competitors, in Ireland.

Bank of Ireland (BOI) will operate two market opening measures

(1) A Service Package and

(2) A Customer mobility package

In relation to mortgages, from 2013 -2015, BOI has committed to providing a mail marketing service to a Relevant Competitor where the relevant competitor’s share of the market is less than 15% and BOI’s market share is above 30%. In this case, BOI will randomly select at the request of the Relevant Competitor, a percentage of its mortgage customers and send them a copy of the Relevant Competitors marketing material. These mailings will be divided over six periods of six months and different selections will be made each time. However, it would then be at the discretion of the Relevant Competitor whether to engage with a particular mortgage customer, with a view to providing a loan.

Irish Life & Permanent Group Holdings plc (now Permanent TSB Group Holdings plc) was granted State Aid approval on 20 July 2011 for the recapitalisation that took place. In the State Aid decision SA.33311 (2011/N) which has been published by the European Commission in redacted form on its website there is no reference to the matters referenced.

Allied Irish Banks plc has been granted three State Aid approvals between 2009 and 2011. These have been published by the European Commission in redacted form on its website under the decision numbers N241/2009, N553/2010 and SA. 33296 (2011/N) and there is no reference to the matters referenced.

Mortgage Schemes

Ceisteanna (178)

Pearse Doherty

Ceist:

178. Deputy Pearse Doherty asked the Minister for Finance further to the offer made by Permanent TSB in April 2011 to its tracker mortgage borrowers to pay down €5,000 or multiples thereof from the principal outstanding on the mortgage in return for a 10% reward, the number of borrowers that responded to the offer and the total amount paid down on tracker mortgages through the scheme. [44285/12]

Freagraí scríofa

Minister for Finance

I am informed by PTSB that in May 2011 it launched an incentive scheme to encourage customers to overpay on their tracker mortgages. The scheme operated by rewarding customers who made payments against their tracker mortgages which were above their normal scheduled repayments for that mortgage. Bonus payments of 10% of the “overpayment” amount were made to eligible customers. I will arrange for the terms and conditions of the offer to be sent to you separately. I am informed that the scheme ran from May 2011 to August 2011 and that during the period 3,287 customers made extra payments under the scheme and the total amount of these extra payments came to €132.8 million.