Written Answers Nos. 112 - 135
112. Deputy Michael McGrath asked the Minister for Finance regarding Bank of Ireland's holding of National Asset Management Agency bonds, the interest rate being paid on these bonds; the amount that has been redeemed to date; and if he will make a statement on the matter. [49280/14]
Amharc ar fhreagraI am advised by NAMA that as of December 17th, 2014, Bank of Ireland's holding of NAMA senior notes is €2.389bn with a current coupon of 0.267%. The amount redeemed with respect to Bank of Ireland to date is €2.922bn.
113. Deputy Michael McGrath asked the Minister for Finance regarding Permanent TSB's holding of National Asset Management Agency bonds the interest rate being paid on these bonds; the amount that has been redeemed to date; and if he will make a statement on the matter. [49281/14]
Amharc ar fhreagraI am advised by NAMA that as of December 17th, 2014, Permanent TSB's holding of NAMA senior notes is €1.298bn with a current coupon of 0.267%. The amount redeemed to date with respect to Permanent TSB is €1.593bn.
114. Deputy Michael McGrath asked the Minister for Finance the number of agreed business plans the National Asset Management Agency currently has in place with developers; the number waiting to be completed; if the agency is satisfied with the implementation of these plans; and if he will make a statement on the matter. [49282/14]
Amharc ar fhreagraI am advised by NAMA that it had assessed all 775 debtor business plans and had determined initial strategies for all debtor connections by end-June 2012. This has created the debtor management platform for NAMA and enabled it to achieve its core commercial objectives, including, critically, the repayment of €16.6 billion or 55% of its total senior liabilities more than two years ahead of schedule. These agreed workouts are subject to at least biannual review by NAMA.
116. Deputy Michael McGrath asked the Minister for Finance the number of applications for rent reviews received by developers whose debts are owned by the National Asset Management Agency; the number which were successful; and if he will make a statement on the matter. [49284/14]
Amharc ar fhreagraI am advised by NAMA that, to date, it has received 370 eligible applications for rent abatement through its debtors and receivers. Of these 339 applications have been approved, 19 are currently being assessed and 12 have been refused. The aggregate annual value of approved rent abatements date is €22m. To date, NAMA has approved long-term rent reliefs with a value in excess of €40m.
Tenants wishing to make an application for rent abatement through their landlord, where that landlord is a NAMA debtor or Receiver and the relevant property is security to a NAMA loan, should consult the NAMA Guidance Note on Upwards Only Rent Reviews, which sets out the process involved. The Guidance Note in available on the NAMA website, www.nama.ie.
117. Deputy Michael McGrath asked the Minister for Finance the remaining sum covered by the eligible liabilities guarantee; and if he will make a statement on the matter. [49285/14]
Amharc ar fhreagraAt the date of ending the Scheme for new liabilities (midnight 28th March 2013), ELG covered liabilities stood at c. €74.6 billion. The most up-to-date information available at 31st October 2014 illustrates that ELG covered liabilities have fallen following the run-off of maturing deposits and bonds to c. €13.9 billion, a reduction of c. €61 billion in just over a year and a half with little direct impact on overall deposit volumes at the Covered Banks.
118. Deputy Michael McGrath asked the Minister for Finance the amount of DIRT tax deducted from credit union accounts in each year from 2010 to date in 2014; and if he will make a statement on the matter. [49286/14]
Amharc ar fhreagraI am advised by Revenue that Deposit Interest Retention Tax (DIRT) is paid on a quarterly basis by the relevant financial institutions, including credit unions. The payment due dates are 21 April, 21 July and 21 October of the tax year in question with any balancing payments due by 15 January of the following year.
In most instances credit unions pay the bulk of the DIRT liability as part of the January balancing payment. This is due to the timing of annual meetings that determine the dividends and consequential DIRT liabilities.
The following table sets out the amount of DIRT paid by credit unions to Revenue for each year from 2010 to 2014 (at 15 December).
|
Year |
Amount Paid |
|
2010 |
€11.7m |
|
2011 |
€11.4m |
|
2012 |
€16.0m |
|
2013 |
€15.1m |
|
2014 |
€3.6m |
119. Deputy Michael McGrath asked the Minister for Finance if he will provide a breakdown of the regulatory impact assessments published by his Department since March 2011; and if he will make a statement on the matter. [49287/14]
Amharc ar fhreagraSince March 2011 a total of 5 RIAs have been published by the Department of Finance. They were completed in respect of the following pieces of legislation:
1. Central Bank (Supervision and Enforcement ) Bill 2011
2. Credit Union and Co-Operation with overseas Regulators Bill 2012
3. Credit Reporting Bill 2012 in the form of the Report of the inter Agency Working Group on Credit Histories.
4. Irish Collective Asset-management Vehicles Bill 2014
5. Strategic Banking Corporation of Ireland Bill 2014
The Department of Finance undertakes Regulatory Impact Analyses (RIA) in accordance with the latest guidelines as published by the Department of An Taoiseach. A RIA is carried out where it is deemed necessary to do so in respect of a policy or programme that is being developed. It is used where one or more of the policy options involves new regulation or a regulatory change. The RIA structure facilitates the active consideration of alternatives to regulation or lighter forms of regulation. There are cases where a RIA is not required. For example, a RIA is not required in the case of emergency legislation or in the case of the Finance Bill.
A copy of each of the RIAs listed above is available on the Department's website.
120. Deputy Terence Flanagan asked the Minister for Finance the changes made to the standard and personal funding threshold for pensions over the past five years; and if he will make a statement on the matter. [49288/14]
Amharc ar fhreagra122. Deputy Michael McGrath asked the Minister for Finance the number of taxpayers who were affected in 2014 by restriction on tax relief on contributions to large pension pots outlined in budget 2014; and if he will make a statement on the matter. [49290/14]
Amharc ar fhreagra148. Deputy Terence Flanagan asked the Minister for Finance if the public sector is being treated the same as the private sector regarding standard funding thresholds and personal funding thresholds for pensions; and if he will make a statement on the matter. [49389/14]
Amharc ar fhreagraI propose to take Questions Nos. 120, 122 and 148 together.
I assume the Deputies' questions relate to the Standard Fund Threshold (SFT) regime which deals with the maximum allowable pension fund at retirement for tax purposes.
The SFT regime was introduced with effect from 7 December 2005 and is designed to address the problem of pension overfunding and excessive pension accrual by placing a limit on the total capital value of pension benefits that an individual can draw-down in their lifetime. Where the limit is exceeded, a significant tax charge is imposed on the excess when the benefits are drawn down. In this way, the SFT acts to discourage the building up of large pension funds in the first place, or unwinds the tax advantage of such overfunding, by clawing back, through the significant tax charge, the tax relief granted.
The SFT legislation provides that where an individual has pension rights in excess of the SFT limit (at the relevant dates) he or she could claim a Personal Fund Threshold (PFT) from Revenue in order to protect or "grandfather" the value of those rights on that date.
The following schedule sets out in summary form the principal changes made to the SFT regime since its inception. For convenience, the changes are set out on a Finance Act basis.
The SFT regime and the various changes to the regime outlined in the Schedule apply, generally, to all private and public sector pension schemes and pension arrangements, with the exception of the encashment option and the specific public sector related reimbursement options.
As regards the encashment option, I introduced this measure to deal with particular difficulties that individuals with both private and public service pension arrangements would otherwise face from the operation of the SFT regime. An individual in the private sector is generally able to prevent or minimise any breaching of the SFT, or a Personal Fund Threshold (PFT), if he or she has one, by ceasing to contribute to, or accrue benefits under a pension scheme. However, affected individuals in the public service have no such control over their accrual of public service pension entitlements and, as a result, significant chargeable excesses could arise on the public service pension entitlement at retirement in certain circumstances. This is the case where such individuals have built up substantial private sector pension savings before taking up a public service career. Concerns were expressed that this could have a significant disincentive effect for some people to remain in the public service or hinder the future recruitment into the public service of exceptionally well-qualified people from the private sector.
As regards the reimbursement options, as mentioned above public servants cannot prevent a chargeable excess arising and the significant tax charge that ensues, as they have no means of ceasing to accrue benefits under their schemes. It was for that reason that I introduced in Finance Act 2012 a more flexible reimbursement option for public servants affected by chargeable excess tax and extended it in Finance (No. 2) Act 2013. I should stress that these reimbursement options do not remove or reduce the tax liability arising on a chargeable excess but provide more flexible options for the recovery of the tax liability by the pension scheme administrator. These options involve effectively spreading the recovery of the tax, paid up front by the public service pension administrator, over a longer period.
As regards the number of individuals that may be affected by the changes to the Standard SFT regime introduced from 1 January 2014, it is difficult to be definitive about this issue. Among other reasons, this is because the changes are likely to have both direct impacts and indirect behavioural impacts. The direct impacts will be on individuals whose pension savings or entitlements were in excess of the reduced SFT on 1 January 2014 and who have to apply for a PFT certificate. There will also be direct effects on those individuals whose pension savings or entitlements were below the threshold on 1 January 2014 but, with future contributions or accruals, may exceed the threshold in time. For both of these groups where the SFT or PFT is exceeded at the point of retirement, chargeable excess tax will arise. However, the changes are also likely to mean that individuals (generally in the private sector) who may otherwise be affected by the amendments to the SFT, and who have the flexibility to do so, may change behaviour and opt out of additional pension saving or pension accrual, in circumstances where they can obtain compensatory payments from their employer, in order to avoid breaching the SFT or their PFT. Overall, it is estimated that the changes could potentially impact, both directly and indirectly, on up to 10,000 individuals in the short to medium term.
Schedule
Principal changes to the Standard Fund Threshold since inception
Finance Act 2011
- The original SFT limit of €5 million, which through indexation had increased to c. €5.4m, was reduced to €2.3m with effect from 7 December 2010.
- Individuals with pension rights in excess of the new lower SFT on 7 December 2010 could claim a PFT (not exceeding the old SFT of €5.4m) from Revenue in order to protect or "grandfather" the value of those rights on that date.
Finance Act 2012
- An "encashment" option was introduced with effect from 8 February 2012, to address particular difficulties arising from the reduction in the SFT limit to €2.3m in Finance Act 2011, for individuals with dual private sector and public sector pension arrangements. The encashment option provides a one-off opportunity for individuals who meet the conditions to encash their private pension rights, in whole or in part, from age 60 with a view to preventing or minimising the chargeable excess that would otherwise arise when the public sector pension crystallises. The exercise of the option attracts tax at the point of encashment at the higher income tax rate on a ring-fenced basis plus USC. No tax-free lump sum is available in respect of the pension rights encashed.
- Provision was made to address an unintended "double taxation" anomaly whereby tax at the standard rate arises on a retirement lump sum (in excess of the tax-free limit of €200,000) paid to an individual under a pension arrangement at the same time as tax arises on a chargeable excess in relation to that individual (the amount of which will have been influenced by the lump sum). With effect from 8 February 2012 a pension scheme administrator is required to offset the tax on the lump sum against the chargeable excess tax.
- A more structured and flexible regime was introduced for the reimbursement of public sector pension scheme administrators for chargeable excess tax paid "up-front" by the administrator as follows:
- the amount of reimbursement from the lump sum is limited to a maximum of 50% of the value of the lump sum, or a higher percentage if agreed between the individual and the administrator.
- the balance, if any, of the amount to be reimbursed is to be recovered from the gross annual pension payable to the individual over a period to be agreed between the individual and the administrator up to a maximum of 10 years, or
- by the discharge of the outstanding balance by way of a payment by the individual to the administrator (e.g. from own resources or by way of a distribution from an ARF beneficially owned by the individual), or
- by a combination of a reduction in pension and payment of a sum by the individual.
Finance (No. 2) Act 2013
- The value of the SFT was reduced, with effect from 1 January 2014, from €2.3m to €2m,
- Individuals with pension rights in excess of the new lower SFT on 1 January 2014 can claim a PFT (not exceeding the old SFT of €2.3m) from Revenue in order to protect or "grandfather" the value of those rights on that date.
- The valuation factor to be used for establishing the capital value of defined benefit pension rights at the point of retirement, where this takes place after 1 January 2014, was changed from the standard valuation factor of 20 applying up to that date, to a range of higher age related valuation factors that vary with the individual's age at the point at which the pension rights are drawn down (ranging from a factor of 37 where the individual is aged 50 or under to a factor of 22 where the individual is aged 70 or over).
- In calculating the capital value of a defined benefit pension at the point of retirement, transitional arrangements were introduced to provide for a "split" calculation where part of the pension had already been accrued at 1 January 2014 so that the part accrued up to that date will be valued at a factor of 20 and the part accrued after that date valued at the appropriate higher age-related valuation factor,
- The reimbursement options, introduced in Finance Act 2012, for public servants affected by chargeable excess tax were amended and extended to reduce the amount that can be recovered upfront from the net retirement lump sum payable to the individual to a maximum of 20% of the net lump sum (down from 50%) and to provide the option of reimbursement of the pension fund administrator by way of a reduction in the gross pension payable over a period not exceeding 20 years.
Finance Bill 2014
- Amendments made to the SFT legislation to deal with issues arising in relation to pension fund cases involving Pension Adjustment Orders (PAOs) by providing that, where chargeable excess tax arises in relation to pension scheme or pension plan benefits that are subject to a PAO, the tax will be apportioned by the scheme administrator, having regard to the terms of the PAO, so that both the member and non-member spouse/partner share the tax charge equitably.
121. Deputy Michael McGrath asked the Minister for Finance the number of the remaining Irish Bank Resolution Corporation in special liquidation residential mortgages in arrears of less than 90 days, of 90 days to 180 days, of 180 days to 360 days, or 360 days to 720 days and of greater than 720 days; and if he will make a statement on the matter. [49289/14]
Amharc ar fhreagraI am advised by the Special Liquidators of IBRC that the remaining unsold residential mortgages are currently going through a sales process called Project Pearl which, as is the case for all the sales processes, aims to maximise the return to all remaining creditors of IBRC, including the State. This sales process is currently underway so therefore I am advised by the Special Liquidators that the information requested is considered commercially sensitive and will not be released.
The Special Liquidators expect the sales process for Project Pearl to be completed before 31 December 2014.
123. Deputy Michael McGrath asked the Minister for Finance the yield achieved in 2014 from restricting tax relief on private medical insurance policies; and if he will make a statement on the matter. [49291/14]
Amharc ar fhreagraI am informed by the Revenue Commissioners that figures in respect of the full year yield to the Exchequer of restricting tax relief for medical insurance premiums, introduced in Budget 2014, are not yet available. It was estimated at the time of Budget 2014 that the additional yield would be €94 million and €127 million in the first and full years respectively.
For comparative purposes, the cost to the Exchequer of tax relief allowed through the tax relief at source (TRS) system for medical insurance premia for the period January to November 2013, prior to the introduction of the tax relief ceiling, and the estimated costs for the same period in 2014 are set out in the following table.
|
Tax Period |
Estimated Cost €m |
|
Jan-November 2013 |
429 |
|
Jan-November 2014 (provisional) |
328 |
The figures for 2014 are provisional and subject to revision. Neither set of figures include further costs to the Exchequer of age-related tax relief at source.
124. Deputy Michael McGrath asked the Minister for Finance the most up-to-date estimate available to his Department of the number of households in negative equity; his views on the implications of this for the wider economy; and if he will make a statement on the matter. [49292/14]
Amharc ar fhreagraNegative equity occurs when the price of a property falls below the value of the outstanding mortgage secured on that property.
I have been informed by the Central Bank of Ireland that they do not publish any data on the number of households in negative equity. Neither do officials in my own Department collect data in this respect.
However, the Deputy may wish to note that there has been some independent assessment of the issue conducted recently by the Economic and Social Research Institute published a paper in August of this year, Updated Estimates on the Extent of Negative Equity in the Irish Housing Market, which can be accessed at the following link: http://www.esri.ie/publications/search_for_a_publication/search_results/view/index.xml?id=4048.
This paper estimates the extent of negative equity based on certain assumptions regarding the volume of mortgages, house prices, mortgage term, interest rate, buyer type, Loan-to-Value ratio and level of arrears. The paper estimates that the total number of mortgage loans in negative equity reached a peak of over 314,000 by the end of 2012 and also considers, in the view of the authors, some of implications for the wider economy.
125. Deputy Michael McGrath asked the Minister for Finance the number of registered moneylenders here currently; the number of new entrants to the market in the past three years; his views on the extent of legislative protection for consumers availing of the services of moneylenders; and if he will make a statement on the matter. [49293/14]
Amharc ar fhreagraI am informed by the Central Bank of Ireland that as of 1 December 2014, there were 39 licensed moneylenders in Ireland and that the number of licensed moneylenders has decreased since the Central Bank took over responsibility for licensing moneylenders in 2003. Some licensed moneylenders have ceased trading, either voluntarily or involuntarily, whilst other new entrants have been licensed. In the time frame to which the question refers, four new entrants have been licensed since 1 December 2011, with one of these firms no longer holding a licence.
The Central Bank supervises licensed moneylenders through annual reviews of their activities as part of the annual licensing process; inspections (both firm-specific and across the sector); applying a fitness and probity regime; applying the Consumer Protection Code for Licensed Moneylenders and the European Communities (Consumer Credit Agreements) Regulations, 2010; conducting consumer research; advertising monitoring and monitoring trends including complaints made to the Financial Services Ombudsman.
Moneylenders are subject to legislative and regulatory requirements, for example, relating to the specific information that a moneylender must provide to a consumer, prior to entering into a loan and also during the term of a loan (including that a moneylender must have a warning on the loan agreement highlighting that it is a high cost loan), the requirement to conduct creditworthiness assessments. Furthermore, there are requirements relating to handling complaints, dealing with errors, collections and advertising.
Where moneylenders fail to comply with the protections provided to consumers under the requirements, the Central Bank will act, including by way of enforcement action where appropriate.
126. Deputy Michael McGrath asked the Minister for Finance the value of senior guaranteed and unguaranteed bonds and subordinated bonds outstanding in Bank of Ireland, AIB and Permanent TSB; and if he will make a statement on the matter. [49294/14]
Amharc ar fhreagraWith reference to the Deputy's question regarding the value of outstanding balances for various debts instruments, I can confirm that I have received the following responses from the banks:
AIB (as at 5 December 2014):
Senior unsecured guaranteed - €2,224m
Senior unsecured unguaranteed - €1,074m
Senior secured unguaranteed - €4,543m
Subordinated debt* - €1,726m
*Including €1.6bn of the CoCo investment received from the State.
BOI:
Information relating to senior debt instruments (guaranteed and unguaranteed) issued by Bank of Ireland Group and outstanding at 30 June 2014 is set out in page 22 (Table 10) of the June 2014 interim report.
Information relating to subordinated debt instruments issued by Bank of Ireland Group and outstanding at 30 June 2014 is set out in page 97 (Note 24) of the June 2014 interim report.
The Bank of Ireland Group interim report can be accessed at the link: http://www.bankofireland.com/fs/doc/wysiwyg/boi-interim-report-20141.pdf.
permanent tsb (as at 30 June 2014):
- Senior guaranteed bonds - €1,866m
- Unguaranteed bonds - €393m
- Subordinated bonds* - €392m
*Including €373m being the carrying value of the CoCo investment received from the State (nominal value €400m).
127. Deputy Michael McGrath asked the Minister for Finance if he has made payment to the Insurance Compensation Fund in 2014; and if he will make a statement on the matter. [49297/14]
Amharc ar fhreagraThe Insurance Compensation Fund operates under the Insurance Act 1964. Its purpose is to protect policy holders in the event of their insurer becoming insolvent. The Insurance Compensation Fund is maintained and administered by the President of the High Court acting through the Accountant of the Courts of Justice and it is funded through industry contributions. However, because the scheme is not pre-funded, the Act provides for the Exchequer to advance monies on the recommendation of the Central Bank in circumstances where insufficient funds have been generated by an industry levy to cover a large demand.
To date there have been no Exchequer advances required to be made to the ICF in 2014 and it is not anticipated that any Exchequer advances will be required during the remainder of 2014.
128. Deputy Michael McGrath asked the Minister for Finance the position regarding the Revenue Commissioners' contractors project; and if he will make a statement on the matter. [49300/14]
Amharc ar fhreagraI am advised by the Revenue Commissioners that a comprehensive reply on the National Contractors Project was provided to the Deputy in response to Question No. 38 of 11 June 2014 and they provided updated statistics in response to Question No. 313 of 2014 from the Deputy on 17 September 2014.
The Commissioners have provided the following further updated figures:
Since 1 July 2013 to date, audits have been closed in 612 companies, with additional liability in 476 cases and 80 settlements in respect of connected individuals. Additional tax of €9,689,618 has been identified, with penalties of €2,766,426 and interest of €2,712,871, giving a total of €15,168,915.
In addition, 167 companies remain under audit.
129. Deputy Michael McGrath asked the Minister for Finance the number of recipients of the single person child carer tax credit in 2014; and if he will make a statement on the matter. [49302/14]
Amharc ar fhreagraThe Single Person Child Carer Credit (SPCCC) was introduced on 1 January 2014 and replaced the One Parent Family Tax Credit.
SPCCC is available to a primary claimant of a qualifying child, in the first instance. The primary claimant is the person who has the care of a child for the greater part of the year and can be the child's parent or an individual who maintains the child at his or her own expense for the whole or greater part of the year.
The primary claimant may relinquish the credit in favour of a secondary claimant. The secondary claimant must have care of the child for not less than 100 days in the relevant year.
The primary or secondary claimant cannot be married, in a civil partnership or cohabiting.
The number of individuals who are currently claiming SPCCC to date in 2014 is 87,790 of which 3,039 are secondary claimants. This figure is subject to change given that a person has a four year time-frame to claim a refund of tax.
130. Deputy Michael McGrath asked the Minister for Finance the number of projects funded by the Irish Infrastructure Fund; the nature of such projects; the number of jobs created; and if he will make a statement on the matter. [49303/14]
Amharc ar fhreagraThe Irish Infrastructure Fund (IIF) was established by Irish Life Investment Managers, with AMP Capital appointed as the fund's discretionary investment manager and currently has in excess of €300 million of committed capital. The objective of the IIF is to provide long term investors with a stable income yield as well as the potential for capital growth deriving from a substantial portfolio of assets which underpin the Irish economy. The NPRF has a commitment of €250 million to the IIF.
The IIF has thus far completed two investments. The first investment was the acquisition of a controlling stake in a portfolio of wind farms from Viridian Group in 2012. The IIF completed a second investment in 2013 when it acquired Towercom, Ireland's largest independent wireless telecoms infrastructure company. While the volume of potential transactions available in the marketplace has been less than was anticipated at the outset, the IIF has an ongoing pipeline of investment opportunities that it is actively evaluating and it is currently anticipated that one or more additional investments may be undertaken in the coming months. The IIF is also continuing to meet with both domestic and international investors with a view to raising additional capital.
The National Pensions Reserve Fund (NPRF) is shortly to become the Ireland Strategic Investment Fund (ISIF) with a mandate to invest on a commercial basis to support economic activity and employment in Ireland. The ISIF Business Plan and Investment Strategy will be approved in due course by the new NTMA Board, following a process of consultation with the Minister for Finance and with the Minister for Public Expenditure and Reform. While it is standard practice to report financial information to investors and stakeholders, the new ISIF mandate will also require metrics that can be used to help assess economic impact to be reported. It is expected, subject to NTMA Board approval, that a preliminary assessment of the economic impact of the investments made to date in Ireland by the NPRF / ISIF will be published during the first half of 2015.
131. Deputy Michael McGrath asked the Minister for Finance the number of Irish incorporated companies that are not judged to be resident here under the test of management and control which have advised the Revenue Commissioners as to where they are actually resident since the change announced in budget 2014; and if he will make a statement on the matter. [49304/14]
Amharc ar fhreagraFurther to the announcement I made in Budget 2014, a change in company residence rules was made in Section 39 of the Finance (No. 2) Act 2013 to provide that where, by reason of a mismatch of residence rules with a treaty-partner country, an Irish-incorporated company would neither be resident in that country nor in the State and, accordingly, would not be resident in any country, the company will then be treated as resident in the State for tax purposes. The change will ensure that the mismatch of company residence rules does not allow an Irish-incorporated company to be 'stateless' in terms of its place of tax residency. The change applies from 24 October 2013 for newly-incorporated companies (i.e. companies incorporated on or after that date) and from 1 January 2015 for companies incorporated before 24 October 2013.
I am informed by the Revenue Commissioners that they have been advised of companies that will be affected by the change in residence rules in Section 39 of the Finance (No. 2) Act 2013. However, because of the small number of companies involved, the Revenue Commissioners' obligation in relation to confidentiality of taxpayer information precludes them from providing the information requested.
132. Deputy Michael McGrath asked the Minister for Finance the current balance in the deposit protection account; the balance at the end of each year from 2011; and if he will make a statement on the matter. [49305/14]
Amharc ar fhreagraCredit institutions are required to maintain 0.2% of total deposits in the Deposit Protection Account.
The end year balance in the Deposit Protection Account since 2011 is as follows:
|
Year |
€ |
|
2011 |
€435m |
|
2012 |
€403m |
|
2013 |
€380m |
|
2014 |
€390m |
133. Deputy Michael McGrath asked the Minister for Finance the amount of loans outstanding to former directors of Anglo Irish Bank and Irish Nationwide Building Society; and if he will make a statement on the matter. [49306/14]
Amharc ar fhreagraI am advised by the Special Liquidators of IBRC that they consider the requested information to be commercially sensitive and therefore will not be releasing this information.
134. Deputy Michael McGrath asked the Minister for Finance if he has reviewed the implementation of the Mercer report on remuneration in the State-supported banks; and if he will make a statement on the matter. [49307/14]
Amharc ar fhreagraThe Review of Remuneration Practices & Frameworks at the Covered Institutions (the "Mercer Report") was published by my Department on 12th March 2013. Following the publication I requested that the three banks in which the State is a shareholder make savings in total remuneration costs of 6% to 10%.
The three banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested. I was not prescriptive in how this was to be achieved respecting their differing State ownership and investment and paths to profitability. I reviewed the plans submitted and in light of the various industrial relations developments during 2013 I was satisfied that the banks' plans would meet my direction.
It is worth noting in this context that in their respective 2013 annual results, AIB reported a 16% year-on-year decline in costs while ptsb reported a 13% decline in staff costs. Including a one-off pension related gain of c. €400m, Bank of Ireland's total costs reduced by 28% year-on-year.
The management of costs remains an ongoing priority across the banks and my officials monitor the evolution of the various trends both for staff and non-staff expenses on a monthly basis. Keeping costs under control will no doubt be challenging as deleveraging comes to an end and the economy improves. In addition, increased regulatory oversight and necessary investment in technology will also need to be considered. However the overall imperative is to ensure sustainable profitability which will help maximise the future return for the taxpayer.
135. Deputy Michael McGrath asked the Minister for Finance the position regarding the transfer of Newbridge Credit Union to Permanent TSB; if Permanent TSB has made a claim in respect of the indemnity granted to it; if there are outstanding issues to be resolved; and if he will make a statement on the matter. [49308/14]
Amharc ar fhreagraI agreed to the Governor of the Central Bank's request for the payment of a financial incentive of up to €53.9 million to transfer the assets and liabilities - excluding the premises, of Newbridge Credit Union Limited to permanent tsb (ptsb). All assets and liabilities of Newbridge Credit Union Limited - excluding the premises - were transferred to ptsb pursuant to a High Court order dated 10 November 2013.
The financial incentives agreement between the Central Bank and ptsb, required the payment of €23 million to ptsb in cash at transfer. The financial incentives agreement also contains provisions for the Credit Institutions Resolution Fund to cover up to €4.25 million in restructuring and integration costs incurred by ptsb as part of the transaction; up to €2 million in guarantees in respect of transferring liabilities; and up to €24.7 million in Loss Compensation payments in respect of losses on the loan book.
I have been informed by the Central Bank that, to date, the Central Bank has paid €0.8 million to PTSB in respect of restructuring cost claims, and €0.3 million to PTSB in respect of transferring liabilities claims.
Separately, Jim Luby of McStay Luby was appointed as liquidator of Newbridge Credit Union Limited (in liquidation) by the High Court on 16 December 2013. The liquidation process in relation to NCU is on-going. A licence has been granted to ptsb by the liquidator to operate from the NCU premises. The liquidator has now signed contracts with the Office of Public Works to purchase NCU's former premises, with the sale expected to complete in Q1 2015.
The sale proceeds generated (net of expenses) will be paid by NCU into the Credit Institutions Resolution Fund in due course, in accordance with Section 46(6) of the Central Bank and Credit Institutions (Resolution) Act 2011. Under that Act, the Credit Institutions Resolution Fund is the principal creditor of NCU in the amount of the financial incentive paid or payable to ptsb.
