Written Answers Nos. 245-269
245. Deputy Derek Keating asked the Minister for Finance if VRT paid on cars in 2009, which had been imported from the UK throughout 2008 and kept in storage never having been driven on Irish roads and eventually both scrapped, can be refunded. [4564/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that section 134(6), Finance Act 1992 provides for a repayment of Vehicle Registration Tax where the deletion of a vehicle from the register is warranted by exceptional circumstances which arose within 7 working days after the registration of the vehicle by Revenue and where the vehicle has not been "motor taxed" under the Finance (Excise Duties) (Vehicles) Act 1952. The vehicles in question do not satisfy this provision and there are no further provisions to allow for the repayment of VRT in the circumstances outlined.
246. Deputy Robert Dowds asked the Minister for Finance if he will provide, in tabular form, the currencies which the State's financial reserves, as managed by the National Treasury Management Agency, are denominated in; if the recent major currency fluctuations have had any positive or negative impact upon the State's financial situation. [4574/15]
Amharc ar fhreagra248. Deputy Robert Dowds asked the Minister for Finance if he will provide, in tabular form, the currencies the gross debt of the State is denominated in; and if the recent major currency fluctuations have had any positive or negative impact upon the State's financial situation. [4576/15]
Amharc ar fhreagraI propose to take Questions Nos. 246 and 248 together.
At end-2014 the gross National Debt under the management of the National Treasury Management Agency (NTMA) stood at €197.1 billion. Where there are non-euro borrowings such as those from the UK Treasury and International Monetary Fund (IMF) which form part of the EU/IMF Programme of Financial Support as well as some short-term paper liabilities, the NTMA as part of its debt and risk management strategy has in place a hedging programme whereby non-euro borrowings are swapped back into euro using derivative instruments such as currency swaps and foreign exchange contracts. The aim of the hedging programme is to manage exchange rate risks and protect the Exchequer from potential currency volatility. As the vast majority of the gross National Debt is either denominated in, or swapped into, euro there is practically no impact on the value of the debt as a result of recent currency fluctuations.
The main non-euro borrowings are from the UK Treasury and International Monetary Fund (IMF) under the EU/IMF Programme of Financial Support. At end-2014 the outstanding balances on these loans were Sterling 3.2 billion and SDR 11.8 billion respectively. IMF loans are denominated in SDRs (Special Drawing Rights), an international reserve asset created by the IMF. Its value is based on a basket of four key international currencies euro, Japanese yen, pound sterling and U.S. dollar. There are also some short-term paper non-euro borrowings with outstanding balances of £0.15 billion and US $2.3 billion respectively at end-2014.
At end-2014 the Exchequer had cash and other financial asset balances of €14.8 billion. In calculating National Debt these cash and other financial asset balances are netted off Gross National Debt. With the exception of one very small US Dollar deposit, all of the cash and other financial assets are denominated in euro.
The Ireland Strategic Investment Fund follows a policy of reducing its foreign currency risk by in excess of 50%. Following this currency hedge, the Fund has approximately €1 billion worth of exposure to foreign currencies from non-Euro denominated investments. The Fund has therefore, purely from a currency perspective, benefited from the recent strengthening of foreign currencies.
247. Deputy Robert Dowds asked the Minister for Finance if he will provide figures, in tabular form, the currencies the financial reserves of the Central Bank of Ireland are denominated in; and if the recent major currency fluctuations have had any impact upon the Central Bank of Ireland's financial reserves. [4575/15]
Amharc ar fhreagraI have been informed by the Central Bank that as at 31 December 2014, the Central Bank held less than 1% of its total investment portfolio in foreign currencies. Given the low level of exposure to foreign currency and the Central Bank's hedging strategy, recent major currency fluctuations have not had a material impact on the Central Bank's financial reserves.
While the Question seeks currency figures in tabular form, the Central Bank does not disclose details of specific exposures within its own investment portfolio. The Central Bank is independent in the exercise of its functions and the management of its investment holdings is a matter for the Central Bank itself. Neither I nor the Department of Finance have any role in those matters.
Further information on the make-up of the Central Bank's investment portfolio is available from the Central Bank's Annual Report. The Annual Report for 2013 is available on the Central Bank website. The Annual Report for 2014 is due for publication in April 2015. The Annual Report is the normal channel through which the Central Bank comments on the make-up of its investment portfolio.
249. Deputy Ruth Coppinger asked the Minister for Finance if he will introduce a change in regulations to the way bank charges will be applied on accounts with low balances; where the charging of fees greatly reduces the balance or brings the balance to zero; and if he will make a statement on the matter. [4588/15]
Amharc ar fhreagraAll credit institutions in Ireland are independent commercial entities. I have no statutory role in relation to the charges applied by credit institutions. Section 149 of the Consumer Credit Act 1995 requires that credit institutions, prescribed credit institutions and bureaux de change must make a submission to the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges in respect of certain services. Section 149 does not cover interest rates rather it applies to fees and commissions only. The Central Bank may direct the institution not to impose the new or increased charge or it may approve the charge, or approve it at a lower level than requested by the institution. Once approved, the bank is entitled to impose the charge.
The Central Bank's Consumer Protection Code 2012 contains requirements in relation to the provision of information on charges to consumers.
The constituent may be referring to the application of stamp duty for holding a debit card. Stamp duty of €5 per annum applies to all debit cards issued to account holders and I have no plans to remove this charge at present. However, as you may be aware a Standard Bank Account was tested in a pilot project in 3 locations over a period of 9 months in 2012 and 2013. The aim was to design a bank account that has low or no cost associated with it. Officials in my Department are currently examining how to further advance this issue.
250. Deputy Micheál Martin asked the Minister for Finance the position regarding the Irish Fiscal Advisory Council; and if he will make a statement on the matter. [46772/14]
Amharc ar fhreagraThe Irish Fiscal Advisory Council was established on a statutory basis on the 31 December 2012 under the Fiscal Responsibility Act 2012. The Act sets out the Council's functions, which can only be amended through primary legislation.
Further, Regulation (EU) 473/2013 introduced a requirement that draft budgets and the stability programme update must be based on macroeconomic forecasts that are produced or endorsed by an independent body. This endorsement function has been set out in an amendment to the Fiscal Responsibility Act 2012 and has been assigned to the Fiscal Council.
Since its establishment, the Council has published seven Fiscal Assessment Reports, all of which can be found on the Fiscal Council's website.
In its most recent report, the Fiscal Council acknowledged that Ireland is likely to record a deficit for 2015 of less than the 3% of GDP ceiling and the fiscal stance adopted in Budget 2015 is conducive to prudent economic and budgetary management. I responded to the Fiscal Assessment Report on 9 January 2015 and this response is published on my Department's website.
251. Deputy Micheál Martin asked the Minister for Finance the position regarding the spring statement planned by the Government; and if he will make a statement on the matter. [3279/15]
Amharc ar fhreagraUnder European Council Regulation 1175/2011, each Member State is required to present an annual update of its Stability Programme to the European Commission and European Council by end-April.
The Stability Programme Update (SPU) sets out the Government's budgetary objectives and the main economic assumptions underpinning them for the following three years or - as applies to Ireland - in accordance with the relevant EU Regulation until the time at which the medium-term budgetary objective (MTO) of a balanced budget in structural terms is reached. It is projected that Ireland will reach its MTO in 2018. As part of the annual European Semester process, the European Commission assesses the budgetary strategy of each Member State by reference to its SPU.
This year, Ireland's SPU will be accompanied by a Spring Economic Statement (SES). The SES will set out in broad terms the Government's economic priorities and fiscal strategy over the medium term. The Government would envisage that the SES would become an important part of the annual budgetary cycle.
252. Deputy Peadar Tóibín asked the Minister for Finance if he will provide in tabular form the total number of applications received under the home renovation incentive to date; the total value of activity under the scheme; if he will provide a breakdown of the activities carried out under the scheme; and if he will make a statement on the matter. [4647/15]
Amharc ar fhreagraAs the Deputy is aware, the Home Renovation Incentive was introduced on 25 October 2013 for repairs, renovations and improvements carried out on a person's main residence. The scheme was extended in the recent Budget to include repairs, renovations and improvements carried out on rental properties whose owners are liable to income tax. Only works carried out by a tax compliant contractor qualify under the Incentive. It is clear from the figures provided that the Incentive has been very successful in boosting activity in the legitimate construction sector and ancillary services.
The electronic facility to allow homeowners claim their tax credit has been available since 13 January 2015. To date, 1,970 claims have been processed, representing total tax credits of €4.3m. The approach of linking activity to tax compliance is proving to be a successful means of levelling the playing pitch when legitimate traders are competing with those operating in the shadow economy. This approach will be continued and I would encourage those in the shadow economy to regularise their tax affairs and avail of the opportunities that will continue to come on stream in the construction sector.
The information requested is as follows:
Table 1 General Statistics on Home Renovation activity at 29 January 2015
|
Number of Works |
20,334 |
|
Number of Properties |
15,487 |
|
Number of Contractors |
4,133 |
|
Value of Works |
€318m |
Table 2 Top 5 Activities by Value
|
Home Extensions |
36% |
|
General Repairs & Renovations |
21% |
|
Window Replacement |
13% |
|
Kitchen Renovations |
10% |
|
Bathroom/Shower/En Suite Improvements |
3% |
Table 3 - Top 5 Activities by Number of Works
|
Window Replacement |
24% |
|
Kitchen Renovations |
19% |
|
General Repairs & Renovations |
12% |
|
Home Extensions |
10% |
|
Bathroom/Shower/En Suite Improvements |
6% |
253. Deputy Pearse Doherty asked the Minister for Finance if the Central Bank of Ireland will outsource the operation of the new credit register; and if he will make a statement on the matter. [4679/15]
Amharc ar fhreagraI am informed by the Central Bank of Ireland that it is nearing the conclusion of a public procurement process to select a partner to build and operate the Central Credit Register (CCR) on its behalf. The strategy pursued has been to seek proposals from experienced operators with:
- a deep understanding of the business processes and specialised data processing involved, in particular, to match data to create a Single Borrower View and to develop reliable matching and credit scoring algorithms;
- a proven capacity to provide and maintain modern IT facilities and information security capabilities;
- a reputation for reliability and accuracy.
The Central Bank considered alternative approaches to delivering the CCR, such as developing or buying a software solution and building the necessary operational capability within the Bank. Options were compared across a number of criteria, including risk, timeline to implement and cost. Awarding a contract to an experienced operator is favoured as the safest approach to delivering the CCR in a cost effective and timely manner.
254. Deputy Pearse Doherty asked the Minister for Finance the number of persons whose homes are in negative equity. [4682/15]
Amharc ar fhreagraNegative equity occurs when the price of a property falls below the value of the outstanding mortgage secured on that property.
While regular data is not collected on the number of persons whose homes are in negative equity, 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 (ESRI). The ESRI published a paper in August 2014 Updated Estimates on the Extent of Negative Equity in the Irish Housing Market. This paper can be accessed at the following link : http://www.esri.ie/publications/search_for_a_publication/search_results/view/index.xml?id=4048
The 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. However, the subsequent recovery of house prices reduced that number - the ESRI estimates that the numbers in negative equity fell by 15% in 2013 and would further improved in 2014 as prices increased.
255. Deputy Michael McGrath asked the Minister for Finance if new mortgage rules apply to a person who currently has mortgage approval but has not yet drawn down their mortgage; and if he will make a statement on the matter. [4685/15]
Amharc ar fhreagraThe Central Bank has advised me that a borrower who has mortgage approval in principle, supported by a full credit assessment, prior to the effective date of the new macro prudential regulations on residential mortgage lending, will not be impacted by these regulations for the duration of the mortgage approval.
256. Deputy Michael McGrath asked the Minister for Finance his views that it is an anomaly that the 20% minium deposit rule applies to non-first-time buyers with equity in their home who wish to trade up but does not apply to someone in negative equity who similarly wishes to purchase a new home; and if he will make a statement on the matter. [4686/15]
Amharc ar fhreagraThe Central Bank is responsible for formulating and implementing macro prudential policy. In the context of negative equity, the Central Bank considers that it is necessary to provide for an exemption for households in such a situation to avoid unduly limiting mobility for such borrowers. The Central Bank has indicated that there is currently little new lending to such borrowers (less than 300 mortgages were issued by the main banks to borrowers in negative equity in 2014).
Accordingly, the Central Bank do not consider it necessary at this time, for macro-prudential purposes, to introduce a special Loan to Value regime for such borrowers. However, if unintended consequences or adverse behaviour is observed as a consequence of this exemption, or for any other reason it appears appropriate, the Central Bank has indicated that it reserves the right to amend the exemption accordingly. As with all these macro prudential limits, this does not preclude a lender from applying stricter lending standards than contained in the Regulations.
257. Deputy Terence Flanagan asked the Minister for Finance the number of taxpayers that claimed for medical expenses in their tax returns in 2013 and 2014; and if he will make a statement on the matter. [4728/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that a wide range of statistical information is available on their new, enhanced, statistics webpage at www.revenue.ie/en/about/statistics/index.html. There is a section of that page dedicated to Income Tax and Corporation Tax data at www.revenue.ie/en/about/statistics/index.html#section4 in which information on the cost of credits, allowances and reliefs for the years 2004 to 2012 (the most recent figures available) can be found, under the heading "Cost of Credits, Allowances and Reliefs". This shows the cost of the claims for tax relief on health expenses, which includes medical and dental expenses.
258. Deputy Terence Flanagan asked the Minister for Finance the number of taxpayers that had a medical card in 2013 and 2014; and if he will make a statement on the matter. [4729/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that, while not directly available from tax records, recent data exchanges between Revenue and the HSE has allowed medical card holders to be identified and linked to Revenue's taxpayer records. On this basis, for the income tax year 2012 (the most recent tax year for which data are available), the number of income earners who had a medical card is estimated to be approximately 379,000 out of a total of 2.1 million income earners.
259. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €0 and €10,036 of all persons who pay the charge. [4753/15]
Amharc ar fhreagra260. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €10,036 and €20,000 of all persons who pay the charge. [4754/15]
Amharc ar fhreagra261. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €20,001 and €30,000 of all persons who pay the charge. [4755/15]
Amharc ar fhreagra262. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €30,001 and €40,000 of all persons who pay the charge. [4756/15]
Amharc ar fhreagra263. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €40,001 and €50,000 of all persons who pay the charge. [4757/15]
Amharc ar fhreagra264. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €50,001 and €60,000 of all persons who pay the charge. [4758/15]
Amharc ar fhreagra265. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €60,001 and €70,000 of all persons who pay the charge. [4759/15]
Amharc ar fhreagra266. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €70,001 and €80,000 of all persons who pay the charge. [4760/15]
Amharc ar fhreagra267. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €80,001 and €90,000 of all persons who pay the charge. [4761/15]
Amharc ar fhreagra268. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income between €90,001 and €100,000 of all persons who pay the charge. [4762/15]
Amharc ar fhreagra269. Deputy Robert Dowds asked the Minister for Finance the amount of money collected by the State in 2014 through the universal social charge on the portion of income above €100,000 of all persons who pay the charge. [4763/15]
Amharc ar fhreagraI propose to take Questions Nos. 259 to 269, inclusive, together.
I am advised by the Revenue Commissioners that the breakdown of the Universal Social Charge (USC) receipts requested by the Deputy is not available. It is not possible to isolate the USC paid on certain ranges of income, nor are detailed data for 2014 available as yet.
However, the Deputy may be interested to note that a wide range of statistical information is now available on the Revenue Commissioners' new, enhanced, statistics webpage at www.revenue.ie/en/about/statistics/index.html. In particular, at www.cso.ie/px/pxeirestat/pssn/rv01/homepagefiles/rv01_statbank.asp, detailed information on the breakdowns of gross income and USC paid by income range can be found under the heading "Income Tax and Corporation Tax Distribution Statistics", where Table RVA03 shows USC payments by income range.
This recently released facility provides breakdowns on the annual distribution of Income Tax from 2004 to 2012 and USC from 2011 to 2012 using the Central Statistics Office 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 be dynamically accessed by a range of user defined queries. If the Deputy requires assistance locating the information on the Revenue webpages, the Commissioners are available to assist and may be contacted by email at statistics@revenue.ie.
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.
