Thursday, 12 Dec 2013

Written Answers Nos. 59-66

Mortgage Schemes

Ceisteanna (59)

Lucinda Creighton

Ceist:

59. Deputy Lucinda Creighton asked the Minister for Finance his views on the latest developments of multiple domestic Irish Banks restarting buy to let mortgage lending including a new non-banking firm (details supplied) entering the market; if he is monitoring the extent to which these mortgages are being loaned geographically in Ireland and that there is no disproportionate concentration of lending into the rising Dublin housing market; and if he will make a statement on the matter. [53623/13]

Freagraí scríofa

Minister for Finance

As the Deputy may be aware, there are signs of rising demand for rental properties through increased rents, in some urban centres. Increased lending in the buy to let sector where the business case is evident can address a particular problem and help stabilise rents.

The Central Bank, as part of its regulatory function will have a key role in monitoring the activities and attendant risks in this area.

Mortgage Schemes

Ceisteanna (60)

Lucinda Creighton

Ceist:

60. Deputy Lucinda Creighton asked the Minister for Finance if he is concerned about the decision of a company (details supplied) to renege on its original plan to offer up to €300 million in new Irish mortgages; and if he will make a statement on the matter. [53624/13]

Freagraí scríofa

Minister for Finance

In the first instance, as the Deputy can appreciate, in relation to the company referred to and indeed any company considering entering or expanding in the Irish market, this represents a commercial decision for the company involved.

Mortgage lending decisions must be undertaken on a sustainable and prudential basis by financial institutions and conform fully to the regulatory requirements, both in relation to the financial institution itself, and also with regard to the safeguarding of the borrower's interests. The Central Bank has advised me that it does not comment on commercial decisions or set commercial policy of individual firms. In a supervisory capacity, the Central Bank oversees and reviews bank practices and regulatory adherence.

Government policy is to promote competition in the banking area as this provides choice and options to the consumer and businesses.

Mortgage Debt

Ceisteanna (61)

Lucinda Creighton

Ceist:

61. Deputy Lucinda Creighton asked the Minister for Finance if any assessment has been undertaken on the total outstanding mortgage debt secured on residences here that was sought by creditors in ongoing proceedings before the Courts in advance of the enactment of the Land and Conveyancing Law Reform Bill 2013; the total outstanding mortgage debt secured on residences that was sought by creditors in proceedings before the courts since the enactment of the Land and Conveyancing Law Bill 2013; and if he will make a statement on the matter. [53625/13]

Freagraí scríofa

Minister for Finance

The Land and Conveyancing Law Reform Bill was enacted in July 2013. In its quarterly mortgage arrears and repossession statistics, the Central Bank publishes data on, inter alia, the initiation of legal proceedings to enforce the debt/security on a primary dwelling mortgage by mortgage lenders regulated by the Central Bank. In the year to end June 2013, this data indicates that legal proceedings were issued in respect of 525 mortgage accounts, and in the quarter ending September 2013 such proceedings were issued in a further 1,830 cases. The Central Bank has informed me that information on the level of debt associated with these particular cases is not available.

It should be noted that this data refers only to legal proceedings initiated by lenders. However, I have indicated previously, that the issuance of legal letters by banks cannot in itself be considered to be a sustainable solution under the MART process for a person in mortgage difficulty. Effective engagement between borrower and lender or the utilisation of the new insolvency frameworks may eventually lead to a solution other than repossession even after a case has commenced in the legal system.

Banking Sector Issues

Ceisteanna (62)

Michael McGrath

Ceist:

62. Deputy Michael McGrath asked the Minister for Finance if Bank of Ireland has commissioned a third party organisation to conduct a customer satisfaction survey of the bank's customers who are experiencing difficulties with their mortgages; if the bank has the authority from customers to pass on their confidential details to a third party in this manner; if he will specify the purpose of the survey; if any data protection issues arise; his views on whether he believes it is appropriate for those in mortgage arrears to have their information passed on by the bank; and if he will make a statement on the matter. [53635/13]

Freagraí scríofa

Minister for Finance

As specified in the relationship framework agreement between my Department and Bank of Ireland, it is the Board of the Bank who make decisions regarding day to day operational issues of the Bank.

I must re-iterate that the Bank’s policy in relation to operations 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 bank, which include this matter. These decisions are taken by the board and management of the institution.

Notwithstanding the fact that the State is a minority 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.

The Bank has kindly supplied the following response to the Deputy’s question:-

“Bank of Ireland conducts on-going customer research to increase our understanding of customer needs and to gain feedback on the products and services we provide. All such research is carried out in compliance with all relevant codes and standards. The output of all research is confidential to the BOI group and is used continuously by the bank to improve our customer's experiences and the services that we offer.”

Banking Sector Investigations

Ceisteanna (63)

Michael McGrath

Ceist:

63. Deputy Michael McGrath asked the Minister for Finance in respect of each of the banks in which the State holds shares, if the banks have conducted any internal investigation into their lending practices prior to the economic crash in 2008, including for example, instances where money was advanced to customers prior to loan documentation being signed, loan documentation being inadequate and remaining unsigned; and if he will make a statement on the matter. [53636/13]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware since 2008 the banks in question have been subject to the 2011 PCAR and the recently completed Balance Sheet Assessment. Both of these exercises were conducted by the CBI and outside consultants and included a data integrity verification analysis that would have looked at the quality of the loan file data and documentation including security. Separately the banks are also subject to periodic file reviews by the Central Bank of Ireland and by their auditors as part of the statutory audit process.

It should also be noted that details in relation to the banks’ Risk Management Frameworks and governance are outlined in their respective Annual Financial Reports. The banks are required to review their lending policies and practices on an on-going basis and have made material changes to them since 2008. This includes a comprehensive and coherent suite of frameworks, polices, procedures and standards covering business and financial planning, corporate governance and risk management. The banks have a Group Risk Appetite Statement and a suite of Credit Policies which are reviewed annually and are subject to robust governance.

Finally I would point out that as part of the EU restructuring plan process, all three banks had to submit an analysis of what led to each bank’s difficulties in recent years, together with an explanation of what has been done to rectify these errors so as to ensure that they do not recur again in the future.

Apprenticeship Programmes

Ceisteanna (64)

Heather Humphreys

Ceist:

64. Deputy Heather Humphreys asked the Minister for Education and Skills if she will consider introducing a scheme to support businesses in providing internships or apprenticeships specifically to early school leavers; and if he will make a statement on the matter. [53632/13]

Freagraí scríofa

Minister of State at the Department of Education and Skills

My Department provides education and training programmes directed at unemployed young early school leavers aged 15-21 through Youthreach and Community Training Centre Programmes. They offer participants the opportunity to identify and pursue viable options within adult life and provide them with opportunities for personal and social development education and training while pursuing nationally accredited qualifications. Participation can last between one and two years.

Apprenticeship is open to participants aged 16 and over with a Junior Certificate. The State funds the provision of the off-the-job phases of apprenticeship and pays training allowances to apprentices during those phases. My Department is currently in the process of carrying out a comprehensive review of the Apprenticeship System. An independent Apprenticeship Review Group was established earlier this year and it is expected that the Review Group will produce recommendations to my Department by the end of the year.

School Enrolments

Ceisteanna (65)

Eoghan Murphy

Ceist:

65. Deputy Eoghan Murphy asked the Minister for Education and Skills if he has considered the introduction of PPS numbers on enrolment forms for schools as part of his new reforms in the area of admissions so as to assist in managing supply and demand and in order to minimise the practice of place-blocking where parents place their children on multiple school enrolment lists. [53401/13]

Freagraí scríofa

Minister for Education and Skills

The Deputy will be aware that I have recently published a draft General Scheme for an Education (Admission to Schools) Bill, 2013 as well as draft regulations for discussion ahead of enacting legislation. The aim of these proposals is to ensure that the way schools decide on applications for enrolment is structured, fair and transparent.I have referred the draft General Scheme and draft regulations to the Oireachtas Joint Committee on Education and Social Protection, to allow a full public discussion of the proposed legislative framework, including inputs from parents and the education partners.

I hope the Committee will give this early consideration so that we can proceed to the next stage of legislation as soon as possible.

Summer Works Scheme Applications

Ceisteanna (66)

Niall Collins

Ceist:

66. Deputy Niall Collins asked the Minister for Education and Skills if he will provide clarification in respect of an application for funding by a school (details supplied) in County Limerick under the summer works scheme; and if he will make a statement on the matter. [53402/13]

Freagraí scríofa

Minister for Education and Skills

An application to provide outside shelters on the grounds of the school to which the Deputy refers is eligible for funding under the Summer Works Scheme (category 10 - external environment).

Commensurate with the level of funding available for the Scheme, applications are assessed on a top down basis in accordance with the prioritisation criteria outlined in the Circular accompanying the Scheme.

The closing date for receipt of applications under the Summer Works Scheme 2014 was 10th December 2013.