Written Answers Nos. 236-247
236. Deputy Michael McGrath asked the Minister for Finance if he will provide details, for each covered institution, of the unguaranteed senior bonds, both secured and unsecured, that remained outstanding as at 28 February 2011. [5101/13]
Amharc ar fhreagraThe Central Bank of Ireland has advised me that as of 18th February 2011 (the nearest available date to end February), the total unguaranteed senior debt issued by the covered institutions was €36,452m of which €20,039m was unguaranteed senior secured and €16,413m was unguaranteed senior unsecured. This information was published on the Central Bank of Ireland website in April 2011.
Link:
http://www.centralbank.ie/press-area/press-releases%5CPages%5CClarification-SeniorDebtandSubordinatedDebtIssuance.aspx
237. Deputy Michael McGrath asked the Minister for Finance his estimate of the final cost of winding up the Irish Bank Resolution Corporation; and if he will make a statement on the matter. [5153/13]
Amharc ar fhreagraIBRC provides details of their outstanding liabilities in their published accounts. This cumulative figure amounted to €50.4bn at 30 June 2012 including €45.2bn representing sale and repurchase agreements with banks and central banks. This amount will have to be repaid over time, mainly from annual instalments on the Promissory Notes. The realisable value on the remaining IBRC loan book (€15.6bn at 30 June 2012) will also be used to reduce this liability over time. The amount of money required by IBRC to repay total liabilities (including these sale and repurchase agreements) is subject to material uncertainty and market factors which include; the expected timing of asset recoveries and sales (themselves dependant on property prices, especially in the UK and Ireland); the volume and timing of maturing funding commitments and deposits; and projected interest rates within the Eurozone. The bank’s policy is that, due to the commercially sensitive nature of such information as noted above combined with the many external variables involved, it does not issue formal projections. However, as you may be aware, the Chairman of IBRC stated at the Oireachtas Committee for Finance and Public Expenditure that he hopes the final bill for Anglo Irish Bank, “will come nearer to €25 billion….than the €29 billion to €34 billion figure”, previously announced. The bank remains of the view that there will be a small return to the State at full resolution, given the assumptions currently being used.
238. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 210 of 22 January 2013, his views on whether it is acceptable for a bank to call a customer 44 times in 19 days, in a case in which the initial contact has been made, the lender is in continuous contact with the borrower and has alerted the borrower to underlying health issues; and if he will make a statement on the matter. [5162/13]
Amharc ar fhreagraAll regulated financial institutions must comply with the provisions of the Central Bank’s ‘Code of Conduct on Mortgage Arrears’ and the ‘Mortgage Arrears – A Consumer Guide to Dealing with your Lender’, and they include the number of times a lender may contact a borrower who is in arrears or in pre-arrears. As the Deputy can appreciate, it is not appropriate for me to comment on an individual case. However, I understand that the Deputy has received correspondence from the financial institution concerned outlining the events in the case referred to in his question. Lenders must comply with the Code of Conduct on Mortgage Arrears as a matter of law. Under Part 111C of the Central Bank Act 1942, the Central Bank has the power to administer sanctions for a contravention of the Code.
239. Deputy Thomas P. Broughan asked the Minister for Finance the position regarding EU level negotiations on the promissory notes; and if he will make a statement on the matter. [5239/13]
Amharc ar fhreagraAs the Deputies are aware, the Irish Government has been working extremely hard to secure a deal on the Irish bank debt with our European partners and detailed work will continue to ensure that positive moves in Europe are harnessed to maximise the benefit to the Irish taxpayer. The focus of the on-going detailed discussions have progressed to consideration of all options in relation to the promissory notes, such as the source of funding, the duration of the notes, the interest rate applicable etc., as well as potential avenues for the wider bank debt deal and the impact of these options on IBRC. This work is one of the Government’s key priorities and will remain a key focus during the EU presidency. As previously advised to the house, the terms sought by the Government are those which achieve the best possible outcome for the Irish taxpayer.
I have previously stated that I am working to try and achieve a solution before the next scheduled instalment on the Promissory Note scheduled for March. It would be very difficult for Ireland to make a payment on the Promissory Notes and so we continue to work on a deal with our European partners to resolve this issue.
240. Deputy Sean Fleming asked the Minister for Finance the amount of his Department’s €5 million capital spending for 2013 that will go towards construction projects; the projects involved; the details of these projects; and if he will make a statement on the matter. [5275/13]
Amharc ar fhreagraThe capital allocation for my Department for 2013 is €0.150m. None of this budget is allocated for construction projects. The remainder of the €5m that you refer to is allocated to the Office of the Revenue Commissioners.
241. Deputy Pearse Doherty asked the Minister for Finance if a piece of land in Dublin 20 (details supplied) is currently under the control of his Department. [5287/13]
Amharc ar fhreagraMy functions, as Minister for Finance, under the State Property Act 1954 in relation to the assets of dissolved companies were transferred to the Minister for Public Expenditure and Reform under the Ministers and Secretaries (Amendment) Act 2011 and S.I. no. 418/2011. I have asked the Minister for Public Expenditure and Reform to look into the details of the case referred to by the Deputy and to respond to him directly.
242. Deputy Finian McGrath asked the Minister for Finance in regard to non-principal private residence charge, if there will be double taxation for six months of 2013, in view of the fact that such residents will be liable for both the NPPR charge as well as the new local property tax. [5289/13]
Amharc ar fhreagra256. Deputy Billy Timmins asked the Minister for Finance the position regarding double taxation, that is, household property tax and non principal private residence charge on rental properties (details supplied); if this matter will be re-examined; and if he will make a statement on the matter. [5372/13]
Amharc ar fhreagra290. Deputy Terence Flanagan asked the Minister for Finance his plans to provide fairness in the tax treatment in the Finance Bill for private landlords who have to pay one year's non principal private residence charge of €200 in March followed by an undetermined amount of local property tax in July, followed again by and undetermined amount in water charges in 2014; and if he will make a statement on the matter. [5952/13]
Amharc ar fhreagraI propose to take Questions Nos. 242, 256 and 290 together.
The inter-Departmental Group chaired by Dr Don Thornhill on the design of a property tax (the “Thornhill Group”) recommended that the Non-Principal Private Residence charge (NPPR) should be absorbed into the Local Property Tax (LPT) as a separate supplemental tax in addition to the LPT at the existing level applying to non-principal private residences. However, the Government decided that while the NPPR will be collected in 2013 when a half-year LPT will apply, it should be discontinued thereafter. There is no exemption from the LPT for those who are liable for the NPPR.
As set out in the Local Government (Charges) Act 2009, as amended, liability to pay the NPPR is determined on the basis of ownership of the property in question on the "liability date" which is 31 March for 2013. The LPT does not come into effect until 1 July 2013. The Government decided to extend the NPPR into 2013 to ensure as smooth a transition as possible for local authorities pending the introduction of the full LPT.
Residential properties rented by landlords will be subject to Local Property Tax from 1 July 2013, with the owners of the property – in those cases, the landlord – being the liable person for payment of the tax. The Thornhill Group, the inter-departmental group, chaired by Dr Don Thornhill, established to consider the structures and modalities of a property tax, recommended that owners and not occupiers be the liable persons for the Local Property Tax. This was also the view of the 2009 Commission on Taxation. Given that some rental properties have high tenant turnover, which would present significant difficulties in determining liability and collecting taxes, as well as increasing the cost of collecting the tax, the Government accepted this recommendation. Occupier liability may also give rise to perceptions of unfairness if the occupier on the valuation date (i.e. the date at which occupation of the property is deemed by law to create the tax liability) is no longer the occupier on the date at which payment of the tax becomes due.
The Local Property Tax is not an allowable deduction from rental profit for tax purposes. This is the same treatment which applied to the Household Charge and the NPPR Charge. It is, however, proposed to phase in deductibility of the Local Property Tax.
Water charges are a matter for the Minister for the Environment, Community and Local Government.
243. Deputy Pearse Doherty asked the Minister for Finance following a news report on Sunday 27 January that a company (details supplied) paid no tax here despite €57 million in revenues in its most recent financial year and a net profit, because of a series of facilitating tax allowances, if he will list the number of companies by name which are currently operational or headquartered here but are paying no tax to the Irish Exchequer. [5290/13]
Amharc ar fhreagraThe tax affairs of individual companies are a matter for the Revenue Commissioners and the companies concerned. I am informed by the Revenue Commissioners that their obligation to observe confidentiality in relation to the tax affairs of individual taxpayers and companies precludes them from providing the information requested by the Deputy in respect of individual companies. However, the Deputy may wish to note that companies file returns with no taxable profits for a variety of reasons and this may be the result of losses, capital allowances as well as the operation of other reliefs.
244. Deputy Pearse Doherty asked the Minister for Finance the process adopted by him to sell Irish Life which has been purchased by the State for €1.3bn; the key dates in the selling process; the providers of any services to the State to facilitate the sale; the way the State can be satisfied that it will obtain the maximum price from the sale; and if he will make a statement on the matter. [5291/13]
Amharc ar fhreagraAs the Deputy will be aware Goldman Sachs has been retained to advise the State on matters relating to the sale of Irish Life since April 2011 and this engagement, details of which have already been disclosed, is continuing. As I have stated previously the State intends to dispose of its holding in Irish Life as soon as market conditions permit. If a sale was to arise I would expect to be advised by my Department and its advisers.
245. Deputy Pearse Doherty asked the Minister for Finance the most recent valuation of the State’s stake in Irish Life; the date on which the valuation was undertaken; if any persons outside his Department assisted in the valuation; and if so, the names of same and the quantum of any fees paid for any external valuation. [5292/13]
Amharc ar fhreagraAs I stated in response to PQ 51139/12, the State paid consideration of €1.3 billion to acquire a 100% interest in Irish Life in June 2012. The shares are held at this value in the Finance Accounts and do not get revalued on a regular basis. In arriving at the consideration agreed in March 2012, information available to us from the sale process which was postponed in late 2011 was reviewed. A review was also undertaken of developments since that time in Irish Life and the Irish economy, movements in industry peer group valuation multiples and improvements in bond yields, particularly in Ireland. As you would expect I received advice from my officials on the valuation of Irish Life ahead of its acquisition in June 2012. In addition advice was also provided to my Department by Goldman Sachs who have been providing advice since 2011 in relation to Irish Life. This engagement has continued to date but no additional fees over and above those already disclosed have been incurred.
246. Deputy Pearse Doherty asked the Minister for Finance the personnel responsible for negotiating on behalf of the State the sale of Irish Life, and if he will list their relevant qualifications and experience. [5293/13]
Amharc ar fhreagraI will not refer to specific personnel but I can confirm that the State’s investment in Irish Life is managed by officials within my Department.
247. Deputy Pearse Doherty asked the Minister for Finance the safeguards that exist to prevent staff in his Department involved in the sale of Irish Life, moving to work for the new buyer of Irish Life. [5294/13]
Amharc ar fhreagraIn accordance with the Ethics Acts (i.e. Ethics in Public Office Act 1995, Standards in Public Office Act 2001), any civil servant intending to be engaged in or connected with (i) any outside business with which he or she had official dealings or (ii) any outside business that might gain an unfair advantage over its competitors by employing him or her, must inform the appropriate authority of such an intention (the appropriate authority for civil servants in my Department below Assistant Secretary level is the Secretary General, and those above Assistant Secretary level must apply to the Outside Appointments Board). Further details may be found at http://sipo.gov.ie/en/CodesofConduct/ Additionally, civil servants who hold positions which are designated positions for the purposes of the Ethics Acts shall not, within twelve months of resigning or retiring from the civil service accept an offer of appointment from an employer outside the civil service or accept an engagement in a particular consultancy project where the nature and terms of such appointment or engagement could lead to a conflict of interest, without first obtaining approval from the appropriate authority as outlined above. Even where the twelve months moratorium has elapsed, or where for other reasons approval is not required before taking up outside employment, former civil servants must continue to observe the restrictions imposed by the Official Secrets Act 1963, as amended by the Freedom of Information Acts.
With regard to staff seconded from the National Treasury Management Agency (NTMA) to work in the Department’s Shareholder Management Unit on the sale of Irish Life, I am informed by the NTMA that its employees have notice periods of one or three months (and 6 months in the case of the Chief Executive). All NTMA employees are subject to section 14 of the National Treasury Management Agency Act, 1990 which prohibits an employee from disclosing any information obtained while carrying out their duties as employees of the NTMA. NTMA employees are also subject to the Official Secrets Act. Contravention of the NTMA Act and the Official Secrets Act is a criminal offence and the prohibition on disclosing confidential information applies indefinitely and extends to former employees.
