Wednesday, 14 Jan 2015

Written Answers Nos. 130-150

Bank Charges

Ceisteanna (130, 131, 132)

Pearse Doherty

Ceist:

130. Deputy Pearse Doherty asked the Minister for Finance the obligations a bank has to inform customers of changes to fees or the introduction of fees. [49484/14]

Pearse Doherty

Ceist:

131. Deputy Pearse Doherty asked the Minister for Finance the obligation a bank has to customers who may move abroad in informing them of what will happen to their account. [49485/14]

Pearse Doherty

Ceist:

132. Deputy Pearse Doherty asked the Minister for Finance the reason banks can take maintenance fees from dormant accounts that are unusable by the customer; and his plans to rectify this matter. [49486/14]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 130 to 132, inclusive, together.

The Central Bank has informed me that both the European Communities (Payment Services) Regulations 2009 and the Central Bank's Consumer Protection Code 2012 contain certain requirements in relation to the information to be provided about charges to ensure that the customer is aware in advance of the amount of a charge for the provision of certain services.

The Payment Services Regulations require that payment service providers:

provide information on all charges payable by the user to the provider and, where such charges can be broken down into components, a statement of those components.

agree, between the payment service user and the payment service provider, any charges imposed. These charges shall be appropriate and in line with the payment service provider's actual costs.

All charges applicable must be provided before a user uses a payment service.

Providers must give 2 months notice to users of any proposed changes to framework contracts  and if the user is not happy with the changes proposed they can object and/or immediately terminate the contract for free.

The Central Bank's Consumer Protection Code 2012 contains a number of provisions relating to charges which regulated entities including credit institutions must comply with, except when providing payment service and/or issuing electronic money. Under the Code regulated entities must:

- make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer.

- provide consumers with a breakdown of all charges, including third party charges prior to providing a product or service to the consumer.  Where such charges cannot be ascertained in advance, notify the consumer that such charges will be levied as part of the transaction.

- display a schedule of fees and charges in public offices, in a manner that is easily accessible to consumers. If the regulated entity has a website, its schedule of fees and charges must also be made available on the website.

- notify affected consumers of increases in charges, specifying the new charge and the old charge, or the introduction of any new charge, at least 30 days prior to the change taking effect.

- must, where charges are accumulated and applied periodically to accounts consumers, and amount to €10 or more notify the consumer at least 10 business days in advance of the deduction of the charges and give each consumer a breakdown of such charges.

In relation to an account held by a consumer who then relocates to another jurisdiction, there are numerous scenarios, including whether the relocation is temporary or permanent and whether the consumer wishes to maintain their account or close it etc. and therefore it is difficult to be definitive about a bank's obligations.  If a customer is moving abroad, he/she should clarify these matters with their bank.

With regard to the Deputy's question regarding maintenance fees and dormant accounts,  it is not entirely clear to what type of account the Deputy refers, that is, a bank account that is currently not actively being used by the customer or a dormant account within the meaning of the Dormants Accounts Act 2001.  Under the Act,  a bank account is only considered a dormant account when it is transferred to the Dormant Accounts Fund after laying dormant for 15 years. 

The NTMA informed me that it is not aware that any requests for maintenance fees from the banks have been processed by the NTMA since the establishment of the Dormant Accounts Fund. The Central Bank also informed me that it was not aware of any maintenance fees being applied to dormant accounts.

If the account is not a dormant account but has merely not been used for a period, the normal rules under the Payment Services Regulations  and Consumer Protection apply.

Income Data

Ceisteanna (133, 134)

Derek Nolan

Ceist:

133. Deputy Derek Nolan asked the Minister for Finance the estimated number of individual income taxpayers, total income and the total universal social charge paid for each of the gross income ranges (details supplied) based on the most recent data available; and if he will make a statement on the matter. [49489/14]

Derek Nolan

Ceist:

134. Deputy Derek Nolan asked the Minister for Finance the estimated number of individual income taxpayers, total income and the total tax paid for each of the gross income ranges (details supplied) based on the most recent data available; and if he will make a statement on the matter. [49497/14]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 133 and 134 together.

I am advised by the Revenue Commissioners that a wide range of statistical information is available on the Commissioners' new, enhanced, Statistics webpage: http://www.revenue.ie/en/about/statistics/index.html.

There is a section of the Statistics webpage dedicated to Income Tax and Corporation Tax data and in this section detailed information on the breakdowns of gross income, Income Tax and Universal Social Charge (USC) by income range are available. These are found at the following link http://www.cso.ie/px/pxeirestat/pssn/rv01/homepagefiles/rv01_statbank.asp, under the heading "Income Tax and Corporation Tax Distribution Statistics", tables RVA01 (for Income Tax) and RVA03 (for USC).

This recently released facility provides breakdowns on the annual distribution of Income Tax from 2004 to 2012 using the Central Statistics Offices data toolset. Whereas previously information of this nature was provided by way of static tables in documents, these data are now published in a format which may now be dynamically accessed by a range of user defined queries.

Figures are available currently for years up to 2012, the last year for which returns have been filed and fully processed. Updates will be published in due course.

The income ranges included in the Revenue statistics do not match exactly those sought by the Deputy but they are broadly similar. I am advised by the Commissioners that providing a more detailed breakdown of income earners among the higher income ranges is not possible, to ensure the confidentiality of taxpayer information held by Revenue.

Fiscal Policy

Ceisteanna (135)

Colm Keaveney

Ceist:

135. Deputy Colm Keaveney asked the Minister for Finance the way he assesses the progress, made since 2011, of the eurozone towards being an optimal currency union; the policies he is pursuing to achieve this goal; the deficiencies he believes still exist in this respect; the risks this poses to the Irish economy; and if he will make a statement on the matter. [49513/14]

Freagraí scríofa

Minister for Finance

The financial crisis and subsequent euro area debt crisis exposed flaws in the design of economic and monetary union.  Broadly speaking, the policy response has centred around retro-fitting the monetary union with the tools to make it operate more efficiently and ensure that the benefits of the single currency are fully realised.

In particular, the economic governance framework of the EU and especially of the euro area has been strengthened significantly.  Economic policies of the Member States are more closely coordinated through the annual European Semester cycle.  Legislative reforms within the so-called 'six-pack' have enhanced the Stability and Growth Pact in order to ensure sound public finances across the EU and euro area.  These legislative changes have also seen the introduction of the macro-economic imbalances procedure which inter alia is designed to avoid economic spill-overs between Member States.

Additional legislative changes in the so-called 'two-pack' introduced a new system of budgetary coordination and enhanced surveillance for euro area Member States emerging from financial assistance programmes and those at risk of or experiencing financial instability. The reforms introduced by the 'two-pack' and 'six-pack' were also underpinned by the 2012 Stability Treaty.

It is also important to stress that considerable progress has been made towards a pan-European Banking Union with considerable progress made during Ireland's Presidency of the Council of the European Union while a substantial firewall (the European Stability Mechanism) has been created.  The existence of a banking union will help participating Member States, including Ireland, avoid and where necessary respond more efficiently to any future economic shocks.

So we are now in a much better place and I would point out that Ireland has fully participated in the European Semester since last year, having exited the EU/IMF programme of financial assistance at the end of 2013.  From an Irish perspective, we are doing our bit to ensure stability in the euro area, our public finances have been put on a more stable footing and we are reducing macroeconomic imbalances.  This is positive from a euro area perspective but also from an Irish perspective.

Finally, it is worth noting that a further discussion on the future of the euro area economic and fiscal framework will be included in the forthcoming 'Four Presidents' report.

Fuel Prices

Ceisteanna (136)

Colm Keaveney

Ceist:

136. Deputy Colm Keaveney asked the Minister for Finance the cost to the Irish economy of the lag by the market in wholesale and retail markets in passing on the recent falls in crude oil prices; if this failure to pass on the full fall in crude oil prices continues at its current magnitude the effect that this will have on our GDP and GNP; and if he will make a statement on the matter. [49559/14]

Freagraí scríofa

Minister for Finance

Brent crude oil has fallen by about 45 per cent in euro terms (nearly 50 per cent in US dollar terms) since the  macroeconomic projections to underpin Budget 2015 were finalised. This will have implications for economic activity in Ireland in real and nominal terms.

On the real side, it should be recalled that Ireland is a net energy importer and as such any unanticipated fall in oil prices will have a positive impact in the short term.  Lower energy prices reduce firms' input costs, thus improving profitability and  competitiveness.  At the household level, lower energy prices are likely to lead to an increase in real disposable incomes, which can be used to reduce indebtedness or increase consumption.  As a result, there is some upside potential to real domestic demand forecasts as announced in the Budget.

There is generally a lag between movements in prices at wholesale and retail level given that suppliers have entered into forward contracts.  The Irish oil industry is fully privatised, liberalised and deregulated and there is no price control on liquid fuel products in Ireland.  All persons selling certain fuel products are legally required to specify on their premises the price per litre being charged to the consumer for these commodities.  Consumers are strongly encouraged to inform themselves of the different price offerings in their localities so as to enable them to proactively seek out the best value when purchasing fuel products.

European Investment Bank

Ceisteanna (137)

Tom Fleming

Ceist:

137. Deputy Tom Fleming asked the Minister for Finance if he will include the Shannon LNG project on the Government's submission for European Investment Bank funding as the proposed LNG terminal in Tarbert, County Kerry would substantially increase security and diversity of energy supply and provide direct access to competitive gas supplies which are crucial for our economic recovery; and if he will make a statement on the matter. [49560/14]

Freagraí scríofa

Minister for Finance

The Shannon LNG terminal project mentioned in the Deputy's question was included in the project list submitted by Ireland in response to the request from the EIB/Commission/Member State Task Force and is included in the Task Force's final report. The report can be found at the following website address - www.eib.org/invest-eu.

For background Ireland's EIB Task Force's project list was the result of coordination between my Department, the Department of Public Expenditure and the Departments with responsibility for public expenditure in the investment sectors specified in the Task Force's Terms of Reference. We have relied on Departments and agencies with direct policy responsibility as the source of all the projects that have been included in Ireland's input to the EU wide project list. 

The Irish project list is part of an EU wide request from the Task Force to gauge the level of available projects in the period 2015-2017 should investment resources be found.  The project list is only a cross section of available projects that could commence between 2015 and 2017. The list does not involve prioritisation and does not bestow any special status on the projects themselves.

In the case of public capital expenditure, it is still a matter for the Departments concerned to advance those projects in accordance with the Capital programme and the Department of Public Expenditure and Reform. As of now, there is no extra funding available beyond the allocations agreed at Budget time and published in the Comprehensive Expenditure Report 2015-2017. It is also important to acknowledge that the current rules of the Stability and Growth Pact mean that even if additional resources were to become available whether they could be used for additional expenditure would depend on the impact of that expenditure on our expenditure limits and the GGB, while how they could be used would depend on competing expenditure priorities.

Personal Insolvency Act

Ceisteanna (138)

Dan Neville

Ceist:

138. Deputy Dan Neville asked the Minister for Finance regarding the personal insolvency legislation, if his attention has been drawn to the fact that some credit unions are not co-operating with this; his views that the credit union movement (details supplied) should be encouraged to become involved in the insolvency process; and if he will make a statement on the matter. [49564/14]

Freagraí scríofa

Minister for Finance

The Personal Insolvency Act was introduced in 2012 by the Minister for Justice and Equality and provides for a fairer balance between the legitimate interests of creditors, which in respect of Credit Unions are their members, and debtors experiencing debt difficulty.  In particular it has reduced the bankruptcy period to three years and has introduced three new debt resolution processes:

Debt Relief Notice (DRN) applies to people with few assets and low income who do not have mortgage debt

Debt Settlement Arrangement (DSA) applies to people with unsecured debt such as loans, overdrafts or credit card debt

Personal Insolvency Arrangement (PIA) applies to people with secured debt such as a mortgage and unsecured debt.

The initiative under these new frameworks rests with the debtor, utilising a Personal Insolvency Practitioner or Approved Intermediary, as appropriate. However, in the case of a PIA or DSA proposal, the relevant creditors have the opportunity to consider and, where necessary, vote on the proposal made by the debtor.  The precise terms of any PIA or DSA, as proposed by a debtor and agreed by creditors, is a matter for the respective parties, having regard to the circumstances of any individual case.

Where a protective certificate issues, creditors affected by it are prevented by law from taking any step to secure or recover payment, including initiation or prosecution of legal proceedings.  Where a proposal is accepted by creditors these protections extend for the duration of the arrangement.

I understand from the Insolvency Service of Ireland (ISI) that both the Irish League of Credit Unions and the Credit Union Development Association, as credit union representative bodies, have been very engaged in working with the ISI on developing protocols covering standard terms for DSA and PIA arrangements.

However, both from a regulatory and supervisory point of view, it is the money of the saving members of credit unions that is ultimately lent to borrowing members, and credit unions must take appropriate steps to protect these funds. It is a matter for individual credit unions to determine how it deals with members' experiencing financial difficulty while ensuring compliance with legal and regulatory requirements.

European Central Bank

Ceisteanna (139)

Colm Keaveney

Ceist:

139. Deputy Colm Keaveney asked the Minister for Finance in view of the significant role that inappropriately low set interest rates by the ECB played in the recent economic crisis here, causing an inappropriate positive output gap in the economy and being a consequence of the deficiency of the eurozone as an optimal currency area, the way he assesses the future risk of inappropriately set interest rates to the economy; the way that these risks may be addressed; the actions he has taken in that respect; and if he will make a statement on the matter. [49572/14]

Freagraí scríofa

Minister for Finance

The ECB sets policy interest rates having regard to inflation developments and prospects in the euro area as a whole, and not in respect of conditions in individual Member States.

It was clear at the outset that participation in monetary union would involve the loss of this policy instrument and that other stabilisation tools such as fiscal and incomes policies would assume greater importance in a currency union.  This is still the case.  Therefore, while euro area policy rates were not appropriate for Ireland during the bubble years, the onus was on other policies to stabilise the economy.

The Deputy makes reference to the deficiency of the euro area as an optimal currency area.  This deficiency relates to the fact not all Member States face economic shocks of the same magnitude or timing.  This can be addressed in a number of ways.  High degrees of labour mobility and policy discipline can help mitigate risks arising within a currency union.  In this regard, it is important to highlight that many reforms have taken place in recent years to improve economic governance and policy co-ordination in the euro area, which will ensure that the benefits of participation in the single currency are enhanced and that monetary union operates more efficiently.  The availability of firewalls in the form of the European Stability Mechanism and broader moves towards European banking union are also important in this regard.

It is clear that, at present, policy interest rate setting in the euro area is beneficial for Ireland, with low rates helping to support both consumption and investment.  There remains, of course, the possibility that at some stage in the future the stance of monetary policy for the euro area as a whole becomes inappropriate for Ireland.  Ways to address this risk include improving financial regulation and undertaking structural reform to ensure that the economy can adapt appropriately.  Fiscal discipline with also be part of the response.  Other ways to reduce such risks include monitoring and guarding against the emergence of asset price bubbles.

Departmental Investigations

Ceisteanna (140)

Michael McCarthy

Ceist:

140. Deputy Michael McCarthy asked the Minister for Finance if his attention has been drawn to an illegal scam involving the European central register for the collection and publication of VAT registration numbers; if an investigation has been conducted into this matter; and if he will make a statement on the matter. [49576/14]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that there is currently no official EU VAT register and that only national tax administrations have the right to issue a VAT number.

I have been informed of reports whereby companies in different EU Member States have received letters encouraging the recipient to disclose his VAT registration number and indeed the EU Commission has issued an alert to the effect that companies have received proposals offering to obtain a valid VAT number against an advance payment. Such proposals have the appearance of an official EU document.  However, there is currently no official EU VAT register and any unsolicited correspondence received from unknown or suspicious sources in relation to VAT registration numbers should be brought to the attention of the Revenue Commissioners.

Insurance Industry

Ceisteanna (141)

Joe Carey

Ceist:

141. Deputy Joe Carey asked the Minister for Finance the conditions a company must adhere to in order to enter the home insurance market and the legislation which underpins these conditions; and if he will make a statement on the matter. [49625/14]

Freagraí scríofa

Minister for Finance

The Insurance Acts and Regulations require an undertaking to hold an authorisation if they wish to carry on insurance business, i.e. to operate as an underwriter rather than a distributor.

An authorisation is required for all classes of insurance business, including the provision of home insurance.  Article 6 (1) of the European Communities (Non- Life Insurance) Framework Regulations 1994 require that an insurance undertaking shall not carry on the business of non-life insurance unless it is the holder of an authorisation. Articles 6, 7 & 9 set out the requirements of authorisation of non-life insurance undertakings.

In addition, Insurance Undertakings are obliged to comply with the provisions of the Consumer Protection Code and the Minimum Competency Code.  The Consumer Protection Code applies to these firms by virtue of them falling within the definition of a 'regulated entity' to which the Consumer Protection Code applies automatically upon their authorisation.

The Consumer Protection Code sets out the requirements and principles that all firms regulated by the Central Bank of Ireland must observe when providing financial products and services to consumers. The Minimum Competency Code outlines the level of competence required of individuals providing relevant financial services. It applies to individuals carrying out 'Pre-Approval Controlled Functions' and 'Controlled Functions' in regulated firms and they are required to comply with 'Continuing Professional Development' requirements on an ongoing basis.  All accredited individuals are required to complete a number of hours of Continuing Professional Development each year in order to be compliant with the provisions of the Minimum Competency Code.

It is also possible for insurance companies which are authorised and regulated by the National Supervisor of another EU Member State to sell home insurance into the Irish market on either a Branch or Freedom of Services basis. All insurers with Irish consumers are required to comply with the Consumer Protection Code.  This applies whether the insurer is prudentially regulated in Ireland, or if the insurer operates here on a freedom of services or a freedom of establishment basis.  Similarly all insurers are required to comply with the Minimum Competency Requirements.

Government Bonds

Ceisteanna (142)

Michael McGrath

Ceist:

142. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 230 of 16 December 2014 whether he will address the issue of the gains made by the European Central Bank on the holdings of Irish Government bonds; his views on whether a case exists for the profit on these holdings to be repaid to the Irish State on maturity; and if he will make a statement on the matter. [49633/14]

Freagraí scríofa

Minister for Finance

On November 26th 2012 a package of measures for Greece was agreed by euro zone finance ministers. This package is designed to help put the Greek economy on a path to sustainable growth and its domestic finances on a sound footing. This package was agreed in the context of the statement by Euro Area Heads of State or Government that the scale of the Greek problem is so large that it requires special attention. 

One of the measures agreed in November 2012, the Securities Markets Programme (SMP) measure, asks Member States to pass on, to Greece's segregated account, an amount equivalent to the income on the SMP portfolio accruing to their national central bank as from budget year 2013.  Member States under a full financial assistance programme, such as Ireland at that time, are not required to participate in this scheme for the period in which they receive financial assistance.

It is important to note that the agreed concessions are specific to Greece and were accompanied by significant additional conditionality, and must be seen in the context of the very significant debt restructuring that has taken place under the Greek programme.

Section 2 of the Central Bank Act 2014 (No. 9 of 2014) provides for Ireland's payments under this measure.

Ireland's needs, as a country that has successfully exited a programme, are very different to those of Greece.  We have now returned to the international capital markets and our bond yields have fallen to historically low levels. We continue to seek ways to further reduce the interest burden, as demonstrated by our recent early repayment of some €9 billion to the IMF. However,  I do not see the SMP measure agreed for Greece as appropriate in our case.     

Tax Code

Ceisteanna (143)

Robert Dowds

Ceist:

143. Deputy Robert Dowds asked the Minister for Finance the financial supports available for persons who are in negative equity who need to let their mortgaged homes and rent alternative accommodation themselves in order to provide for a growing family; and if he will make a statement on the matter. [49635/14]

Freagraí scríofa

Minister for Finance

I am informed by the Revenue Commissioners that the taxable amount of rental income from the letting of property (whether in negative equity or otherwise) is the gross rent from the property less allowable expenses incurred in earning that rent, as specified in section 97(2) of the Taxes Consolidation Act 1997. The main deductible expenses are:

- any rent payable by the landlord in the case of a sub-lease;

- the cost to the landlord of any goods provided or services rendered to a tenant;

- the cost of maintenance, repairs, insurance and management of the property;

- the interest on borrowed money used to purchase, improve or repair the property (which, in the case of residential property, is restricted to 75% of the interest and is subject to compliance with PRTB registration requirements for all tenancies that existed in relation to the property in the relevant year); and

- payment of local authority rates.

In addition, wear and tear capital allowances are available in respect of the capital expenditure incurred on fixtures and fittings provided by a landlord for the purposes of furnishing rented residential accommodation. These allowances are granted at the rate of 12.5% per annum of the actual cost of the fixtures and fittings over a period of 8 years.

The effect of the deduction of allowable expenses from gross rent means that the amount of taxable rental income will often be substantially lower than the gross rent, and could, depending on individual circumstances, be nil.

I have no plans at the moment to change the tax treatment of rental income for tax purposes, however, as a matter of course all such taxation measures and reliefs are considered in the context of the annual budgetary process.

NAMA Portfolio

Ceisteanna (144)

Finian McGrath

Ceist:

144. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding renting; if the National Asset Management Agency is currently in the housing rental sector; and if he will make a statement on the matter. [49638/14]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, upward movement in rents ultimately reflect the fact that there has been limited new residential supply coming to the market since 2007. Within the NAMA portfolio currently, approximately 9,000 properties are rented in the private residential rental market.  All completed residential stock within the portfolio is either currently occupied or is on the market for rent or sale.  As existing properties within the portfolio or new builds are completed they are offered to the market by NAMA debtors and receivers. 

NAMA is not directly involved in the letting or sale of residential properties but, as a secured lender, is making a very substantial contribution to the creation of additional supply in the residential market through its funding to debtors and receivers to complete existing residential development schemes and for the construction of new residential schemes.  This includes NAMA funding for the construction of 4,500 new residential units in the Dublin area in the three years to end-2016, over 1,000 of which were delivered in 2014.

I can assure you that this issue is being taken seriously.  The Construction 2020 initiative sets out a focussed programme of action  to deliver a strong, sustainable, well-financed, competitive and innovative approach to construction and housing.  This initiative is examining a number of aspects of the Irish property market with the aim of uncovering the source of any current market dysfunction and making recommendations to address these.  It will develop an overall strategic approach to housing supply one that is evidence based, and that equips local and national authorities with the tools they need to detect emerging imbalances and to take the steps necessary to correct them.  We intend to ensure that renting is a secure, stable, and viable option for those who choose it.

I note that this question was also asked of the Department of Environment, Community and Local Government who will be able to set out the tenants rights under the Residential Tenancies Act 2009.

Personal Injury Claims

Ceisteanna (145)

Pearse Doherty

Ceist:

145. Deputy Pearse Doherty asked the Minister for Finance the position regarding persons who have applied to an insurance company (details supplied) for a personal injury claim; when they can expect to be compensated; and if he will make a statement on the matter. [49640/14]

Freagraí scríofa

Minister for Finance

The situation around the Setanta liquidation is an evolving one and so I propose to set out the position as it currently stands:  

The Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in certain cases where it is unlikely that claims can be met otherwise than from the ICF.  Management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice. Under the Insurance Act 1964, in a liquidation all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. In addition, claims by bodies corporate or unincorporated bodies are not covered by the ICF, except where there is a liability to or by an individual.

The Accountant, the Liquidator and the State Claims Agency are in the process of agreeing procedures for payments and these will be published as soon as they are agreed.  I am informed by the Accountant and the Liquidator that the following recent progress has been made:

- Based on the information available to the liquidator it is not likely that he will be in a position to meet more than 30% of the insurance claims out of the assets in liquidation. 

- Therefore, on the basis that the ICF may only pay out up to a maximum of 65% on an eligible individual claim, the question of the possibility of advance payments of 65% on eligible claims to the ICF was examined by the Accountant.  The Accountant obtained clarification on the question of whether he could make advance payments of 65% to eligible claimants.  He has informed us that having considered legal advice on the operation of the legislation, he is now satisfied that it is appropriate to make applications to the President of the High Court for approval to release monies from the ICF for compensation, prior to completion of the liquidation of the company. Any payment from the ICF will be a once off and final payment.  

- The State Claims Agency will provide support to the Accountant in terms of the necessary expertise to ensure that only valid claims are paid out of the ICF and administrative support required to deal with the volume of work arising from the Setanta case.   

- The Liquidator has advised that he is aiming to make application to the ICF for outstanding claims early in 2015 in respect of the following categories of claims:

- Claims where settlements have been agreed between Setanta and the claimant;

- Claims where the Personal Injuries Assessment Board has issued Orders to Pay that have been accepted by Setanta and the claimant;

- Claims which have been finalised as a result of a court order.

- The Accountant has advised that he is aiming to make application in respect of this first batch of 300 claims to the President of the High Court before end of March 2015. 

Current estimates indicate that the shortfall for most Setanta claimants will be relatively small once they have received the 65% compensation available from the ICF as well as their distribution from the Liquidation, a process which may take some time. I understand that there is the very small number of large claims where the maximum ICF payment of €825,000 will apply. 

In summary, the Liquidator has advised that settlements can only be paid out after all of the company's liabilities are quantified.  This process may take a number of years.  However, the Accountant of the High Court is in the process of agreeing procedures for the advance payment of 65% in respect of all claims that are eligible for payment from the ICF and he is hoping to apply to the President of the High Court in the coming months in respect of the first batch of 300 claims.

The Accountant of the Courts of Justice can only deal with claims which are submitted by the Liquidator, so the advice to all claimants continues to be that they should contact the Liquidator of Setanta.

Disabled Drivers and Passengers Scheme

Ceisteanna (146)

Bernard Durkan

Ceist:

146. Deputy Bernard J. Durkan asked the Minister for Finance if he will review eligibility for a primary medical certificate in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [49704/14]

Freagraí scríofa

Minister for Finance

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, and exemption from motor tax in respect of that vehicle and, up to a certain limit, assistance in respect of fuel costs. To qualify for the scheme, an applicant must hold a Primary Medical Certificate.

To be eligible for a Primary Medical Certificate, an applicant must be permanently and severely disabled and satisfy one of the following conditions outlined in Regulation 3 of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 (S.I. 353 of 1994) which provides that a person shall be assessed by reference to any one or more of the following medical criteria:

persons who are wholly or almost wholly without the use of both legs;

persons 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;

persons without both hands or without both arms;

persons without one or both legs;

persons wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

persons having the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria required to receive a Primary Medical Certificate. A successful applicant is provided with a Primary Medical Certificate, which is required to claim the reliefs provided for in the Regulations.

An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. I would point out that Regulation 6(1)(e) of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 (S.I. 353 of 1994) provides that the Medical Board of Appeal is independent in the exercise of its functions.

Departmental Bodies Data

Ceisteanna (147)

Patrick O'Donovan

Ceist:

147. Deputy Patrick O'Donovan asked the Minister for Finance the number of agencies, quangos or other bodies within, funded by or established by his Department which have been scrapped, merged or reduced since this Government was formed; the amount saved in each case; the reduction in staff as a result; and if he will make a statement on the matter. [1014/15]

Freagraí scríofa

Minister for Finance

In response to the Deputy's question Sealuchais Árachais Teoranta (SAT) was established in 1985 to effect the state ownership of Icarom. Following the completion of the Icarom administration in 2013, wind up procedures began for Icarom. SAT formally completed its Voluntary Strike Off on 05 October 2014 and the company is now dissolved.

SAT had no paid staff members. A&L Goodbody provided company secretarial service to SAT. This service was invoiced to the Department for Finance at an approximate cost of €2,900 per year.

Name of body	Term of body	Number of Members	Annual Fee	Total Annual Costs
Sealuchais Arachais Teoranta	1985 - 2014	0	0	€2,900 per year approx. for secretarial services

In relation to the Credit Union Advisory Committee (CUAC), the initial committee appointed in 2010 ended its term in 2013. The new Committee established in 2014 has a reduced number of members. The details of the savings made are in the table below.

PQ 1014/15	-	-	-	-
Name of body	Term of body	Number of Members	Annual Fee	Total Annual Costs
Credit Union Advisory Committee (CUAC)*	Appointed by the Minister for Finance under Section 180 of the Credit Union Act 1997 on 1 September 2010 - term ended 30 August 2013	7 (1 Chairman and 6 ordinary members)	Annual Fee of €3,705 for Chairman and €2,470 for ordinary member.	€18,525
	New committee established on 22 September  2014 by the Minister of Finance under Section 180 of the Credit Union Act 1997	3 (1 Chairman and 2 ordinary members)	Annual Fee of €3705 for Chairman and €2470 for ordinary member	€8645
Total annual saving	-	-	-	€9,880

 

* Please note that CUAC  is an advisory committee set up to advise the Minister on Credit Union issues.

The National Treasury Management Agency (Amendment) Act 2014 simplified and streamlined the governance structures of the National Treasury Management Agency (NTMA). While the new governance structures will not see a reduction in staff numbers the Act reconstitutes the NTMA as a body with members who will have over-arching responsibility for all of the NTMA's functions (excluding National Asset Management Agency (NAMA) and the Strategic Banking Corporation of Ireland  (SBCI) which will continue to have their own separate boards).

The reconstituted Agency consists of six appointed Members and three ex-officio Members (the Chief Executive of the NTMA and the Secretaries General of the Department of Finance and the Department of Public Expenditure and Reform). Pursuant to the Act the appointed Members shall be paid remuneration as determined by the Minister for Finance.

The following corporate bodies and committees will no longer be required under the new structure and have been/will be dissolved; the NTMA Advisory Committee, the National Pensions Reserve Fund (NPRF) Commission, the National Development Finance Agency (NDFA) Board and the State Claims Agency (SCA) Policy Committee.  

The table below sets out the Board/Committee structure and remuneration which were applicable to appointees.  Ex officio and other Members who were appointed on the basis of their position in the public service did not receive any payment.

Body/Committee	Pay
NTMA Advisory Committee Chair and 6 ordinary Members	Chairperson: €45,000 Ordinary Member: €22,500
NDFA Board Chair and 7 ordinary Members	Chairperson: ex-officio position Ordinary Member: €12,600
NPRF Commission Chair and 6 ordinary Members	Chairperson: €51,424 Ordinary Member: €34,283
SCA Policy Committee Chair and 6 ordinary Members	Chairperson: €13,713.20 Ordinary Member: €9,142.20

Statutory Instrument 586 of 2014, effective 22 December 2014, reconstituted the Agency and dissolved the NTMA Advisory Committee and the State Claims Policy Committee. Under transitional provisions, pending the transfer of all NPRF assets and liabilities to the Ireland Strategic Investment Fund, the National Pensions Reserve Fund Commission will consist of one Member, the Chief Executive of the NTMA.

It is expected that an order will be signed in early 2015 which will dissolve the Board of the National Development Finance Agency.

Decentralisation Programme

Ceisteanna (148)

Patrick O'Donovan

Ceist:

148. Deputy Patrick O'Donovan asked the Minister for Finance the agencies or sections from his Department that were decentralised during the period 1997 to 2011; and the travel costs and expenses incurred by decentralised personnel travelling to their base Department in that period. [1029/15]

Freagraí scríofa

Minister for Finance

The information requested by the Deputy is set out in the table below.

Certain sections of my Department were decentralised to Tullamore, Co. Offaly in July 2006 and the travel costs and expenses are from that date. The travel to the base Department includes all my Department's offices in Dublin. Some functions and staff were transferred to the Department of Public Expenditure and Reform in July 2011.  Travel costs and expenses for these transferred staff were paid by the Department of Public Expenditure and Reform for the remainder of 2011 and are not included here.

2006	2007	2008	2009	2010	2011	Total
€38,194.96	€90,700.68	€73,627.17	€41,366.19	€31,103.08	€19,876.22	€294,868.30

Mortgage Lending

Ceisteanna (149)

Michael Healy-Rae

Ceist:

149. Deputy Michael Healy-Rae asked the Minister for Finance his views on the Central Bank of Ireland proposal to restrict mortgage lending with the introduction of a 20% deposit requirement for borrowers; his further views that this proposal runs the risk of locking the present and future generations out of home ownership; and if he will make a statement on the matter. [1043/15]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware, the consultation period on the Central Bank's macro prudential proposals for residential mortgage lending concluded on 8 December last.  My Department outlined its views on the proposals as set out in the Central Bank consultation paper and this submission is now available on Department's website:

http://www.finance.gov.ie/what-we-do/banking-financial-services/publications/reports-research/submission-department-finance

Economic Growth Rate

Ceisteanna (150)

Tom Barry

Ceist:

150. Deputy Tom Barry asked the Minister for Finance the worth in monetary terms to the Irish economy of each percentage point in growth in terms of GDP. [1086/15]

Freagraí scríofa

Minister for Finance

The most recent estimate by the CSO of gross domestic product at current market prices in 2013 is €174,791m. Nominal growth of one per cent is therefore equivalent to €1,748m in monetary terms.