Written Answers Nos. 84-91
84. Deputy Michael McGrath asked the Minister for Finance if the liquidator of Irish Bank Resolution Corporation is in litigation with a person (details supplied); and if he will make a statement on the matter. [15095/15]
Amharc ar fhreagraI have been advised by the Special Liquidators that they have issued proceedings against the person referred to in the question and the Discovery Motion was heard in the Commercial Court on Tuesday (14 April 2015). Neither I nor the Special Liquidators are in a position to provide any further information on this matter.
85. Deputy Michael McGrath asked the Minister for Finance the number of cases that have been undertaken by the Central Bank inquiry panel, under Part IIIC of the Central Bank Act 1942, since it was appointed; and if he will make a statement on the matter. [15096/15]
Amharc ar fhreagraThe Central Bank may conduct an Inquiry under Part IIIC of the Central Bank Act 1942 where it suspects on reasonable grounds that a prescribed contravention is being or has been committed. In that regard, the Central Bank has published its Inquiry Guidelines under Section 33BD of the Central Bank Act 1942.
In relation to its Inquiry Panel, the Central Bank published details on its website in October 2014. The Central Bank appointed 15 individuals to the Inquiry Panel. Inquiry members will be appointed in individual cases that are referred to Inquiry pursuant to Part IIIC of the Central Bank Act 1942.
I have been informed by the Central Bank that information in relation to any cases to be undertaken by Inquiry members will be made public in accordance with a notice to be published on the Central Bank's website, which is the mechanism provided for publication as set out in the Inquiry Guidelines. To date no such notices have been published by the Central Bank and I have been informed that no Inquiry hearings have taken place.
Notwithstanding the above, the Administrative Sanctions Procedure in Part IIIC of the Central Bank Act 1942 provides that, at any time before the conclusion of an Inquiry, the matter may be resolved by entering into a settlement agreement. I have been informed by the Central Bank that it has entered into 11 settlement agreements in 2014 under the Administrative Sanctions Procedure under Part IIIC of the Central Bank Act 1942 in relation to contraventions of various legislative and regulatory requirements. The sanctions imposed involved reprimands and fines ranging from €640 million to €3.5 million, totalling €5.42 million.
86. Deputy Catherine Murphy asked the Minister for Finance if he will indicate, with respect to a person (details supplied) seconded to the Irish Bank Resolution Corporation from September 2012, the reports, this person prepared during his tenure at the corporation; if he will make copies of these reports available; if that person's remit was to examine decisions prior to his deployment; the recommendations that person made with respect to transactions proposed by the corporation during his tenure; if that person's intervention led to changes, or to the abandonment of any proposed transaction; if he will provide details of same; and if he will make a statement on the matter. [15104/15]
Amharc ar fhreagraOn 7 September 2012 it was announced to all staff in IBRC that the person referred to in the question was to be appointed as the Bank's new Head of Market Solutions on secondment from the Department of Finance, commencing the role on 2 October 2012. The person referred to in the question brought over 20 years experience in domestic and international wholesale banking to the role.
The responsibilities of the person referred to in the question included:
- Membership of the Bank's Group Executive Committee (GEXCO);
- Membership of the Transaction Review Committee;
- Contribute to the strategic leadership of the Bank;
- Analyse existing investments within the portfolio, critically assess business plans, operations, management, processes, risks, and opportunities;
- Structure/restructure loans/investments from an optimal financial perspective, negotiate the structure and preferred terms;
- Identifying and developing deal opportunities with external investors and financiers that meet the various strategic and financial objectives of the Bank in wind down;
- Build and maintain dialogue with potential investors and counter-parties to establish market opportunities and viable transaction options that assist the Bank meeting its wind down objectives;
- Engagement will be across private equity funds, credit opportunity funds, real estate funds and sovereign wealth funds as well as banks and other providers of credit in the European markets;
- Work with asset recovery teams;
- Appoint brokers/advisors in accordance with the Bank's procurement and compliance policy;
- Team management, and;
- Lead the execution of transactions and engage with counter parties while involving internal group functional groups as well as external service providers.
The person referred to in the question was not party to any planning, preparation or discussions surrounding the ultimate liquidation of IBRC in February 2013.
While the person referred to in the question remained an employee of the Department of Finance during his secondment to IBRC, he worked solely for IBRC during this time with the Market Solutions team and heads of departments to ensure accurate data, information, due diligence and, if appropriate, disposal options for the portfolio. The work completed by the person referred to in the question, including all reports and proposals, was prepared and considered by the IBRC management/committees and, where appropriate, Board as part of the operation of the Bank.
Details of any transactions which the person referred to in the question worked on during his secondment to IBRC are not held by this Department as these were matters for the Bank at that time.
87. Deputy Catherine Murphy asked the Minister for Finance if he will indicate, with respect to a person (details supplied) seconded to the Irish Bank Resolution Corporation from September 2012, the reason such an appointment was made, if the Minister was, as he has stated numerous times, satisfied that transactions at the corporation were being carried out in the best interests of the taxpayer, in particular, the transaction involving the sale of a company (details supplied); his views that some decisions at the corporation were questionable, as to whether the taxpayers' interests were fully served, and that is the reason the secondment in question was made; and if he will make a statement on the matter. [15105/15]
Amharc ar fhreagraIn September 2012 it was announced to all staff in IBRC that the person referred to in the question was to be appointed as the Bank's new Head of Market Solutions on secondment from the Department of Finance, commencing the role on 2 October 2012. This move was decided during a meeting between John Moran and the then CEO of IBRC in August 2012. Given the banking experience of the person referred to in the question it was decided that he would be seconded to IBRC to explore opportunities for deleveraging with a view to maximising the recovery for the taxpayer. This had the additional benefit of providing greater oversight while supporting the management team.
The responsibilities of the person referred to in the question included:
- Membership of the Bank's Group Executive Committee (GEXCO);
- Membership of the Transaction Review Committee;
- Contribute to the strategic leadership of the Bank;
- Analyse existing investments within the portfolio, critically assess business plans, operations, management, processes, risks, and opportunities;
- Structure/restructure loans/investments from an optimal financial perspective, negotiate the structure and preferred terms;
- Identifying and developing deal opportunities with external investors and financiers that meet the various strategic and financial objectives of the Bank in wind down;
- Build and maintain dialogue with potential investors and counter-parties to establish market opportunities and viable transaction options that assist the Bank meeting its wind down objectives;
- Engagement will be across private equity funds, credit opportunity funds, real estate funds and sovereign wealth funds as well as banks and other providers of credit in the European markets;
- Work with asset recovery teams;
- Appoint brokers/advisors in accordance with the Bank's procurement and compliance policy;
- Team management, and;
- Lead the execution of transactions and engage with counter parties while involving internal group functional groups as well as external service providers.
In relation to the transaction involving the sale of the company referred to in the question, as the deputy is aware, it was after officials in my Department received critical representations following the transaction involving the sale of the company referred to in the question that it was decided that Department of Finance officials would review the transaction in greater detail to better understand the decisions taken and the impact these decisions had on the process and the final recovery for the bank.
At a meeting which I attended along with officials from my Department on 25 July 2012, senior management of IBRC assured me that the transaction involving the sale of the company referred to in the question had been thoroughly assessed by the IBRC Board and that the transaction was managed in the best manner possible to achieve the best result for the State.
Neither I nor officials from my Department reviewed all of the transactions undertaken at IBRC; as the Deputy is aware, a Relationship Framework dated 8 July 2009 was in place at the time the Board of IBRC approved the sale of the company referred to in the question. Under this Relationship Framework, the Board of IBRC were required to engage with the Minister for Finance on certain key issues which included "any material acquisitions, disposals, investments, realisations or other transactions, other than in the ordinary course of Anglo Irish Bank's banking business." It should be noted that this Relationship Framework did not include any specific monetary thresholds which would trigger mandatory consultation with the Minister for Finance. It should also be noted, that at that time, the ordinary course of the Bank's business was to conduct an orderly run-down and ultimate liquidation of the Bank.
The revised Relationship Framework and Operational Protocol which was put in place on 29 March 2012 contained specific financial thresholds which would, from that date on, trigger mandatory consultation with the Minister for Finance for qualifying transactions. Again, any transactions outside these financial thresholds were deemed within the ordinary course of the Bank's business and it was not required that I or officials in my Department were made aware of them.
88. Deputy Brendan Smith asked the Minister for Finance the additional measures he proposes to implement to deal with the issue of illegal trading in diesel and petrol products, which is impacting severely on small legitimate businesses and on many motorists due to damage to vehicle engines, particularly in the Border areas; and if he will make a statement on the matter. [15107/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that they recognise the serious threats that fuel fraud poses to legitimate businesses, motorists and Exchequer revenues. Action against this illegal activity is, therefore, a priority for them, and they are implementing a wide-ranging programme of measures to tackle the problem. Key elements of this programme include the following.
- A strengthened licensing regime for auto fuel traders was introduced with effect from September 2011, to limit the ability of fuel criminals to place laundered fuel on the market.
- A new licensing regime for marked fuel traders was introduced in October 2012, to limit the scope for criminals to source marked fuel for laundering.
- New requirements for the keeping by fuel traders of records of stock movements and fuel deliveries were brought in to ensure that data would be available to support supply chain analysis.
- Following a significant investment in the necessary IT systems, new supply chain controls were initiated from January 2013. These require all licensed fuel traders, whether dealing in road fuel or marked fuel, to make monthly electronic returns of their fuel transactions to Revenue, providing data that can be used to identify suspicious or anomalous transactions or patterns of fuel distribution.
- Close cooperation, in the framework of the Cross Border Fuel Fraud Enforcement Group, with other enforcement authorities in this jurisdiction and in Northern Ireland, in combating the fuel fraud problem on an all-island basis.
- The introduction from the start of this month of a new and more effective product for marking rebated fuels that was identified as a result of a joint process conducted with HM Revenue and Customs in the UK. In addition, I have introduced a range of legislative measures in recent years to support Revenue in their work against fuel fraud, including reckless trading provisions that ensure that a mineral oil trader is liable for the mineral oil tax evaded where that trader knew, or was reckless as to whether or not, in making the supply or delivery of fuel, he or she was participating in a transaction or series of transactions connected to the evasion of that tax. In the Finance Act 2014, I introduced measures to further strengthen Revenue's ability to refuse or revoke a mineral oil trader's licence where the trader does nor comply with excise law, does not maintain adequate stock management systems and records, or provides false or misleading information. Revenue's ongoing action against fuel fraud has yielded significant results. Since mid-2011, 136 filling stations were closed for breaches of licensing conditions or for unlicensed trading, over 3 million litres of fuel have been seized and 31 oil laundries were detected and closed down. Industry sources report a much-reduced incidence of laundered fuel on the market and increased road diesel consumption. Obviously other economic factors have contributed to this growth but reduced fraud is also an important factor. I am advised also that the Revenue Commissioners have, since last summer, received reports from around the country of problems relating to petrol quality, and suggestions that these problems are attributable to petrol stretching. Petrol stretching involves the illegal addition of a low-tax commodity to petrol, and the motive of the criminals who engage in this activity is to profit from the sale of the adulterated petrol, thereby defrauding motorists and the State. Every filling station about which a complaint was made has been visited by Revenue enforcement officers and fuel samples taken from them have been sent to the State Laboratory for analysis. The scientific analysis required is complex and time-consuming, and the State laboratory has conducted an extensive series of tests and re-tests on the samples. Despite this extensive testing, evidence of the presence of prohibited stretching agents has been found in only two samples, both from one location. The conclusive results received from those tests led to the seizure of the product, and files are being prepared with a view to prosecution. Following a series of further tests conducted by the State Laboratory, results were received which indicated the presence of road diesel in several samples from a variety of locations. This could indicate that petrol was contaminated with road diesel at some point in time. If the problems that have come to light were caused by unintended contamination as a result of diesel being inadvertently mixed with petrol at some point along the supply chain, there would be no Revenue offence involved. However, the Revenue Commissioners are investigating the possibility of tax fraud being associated with the identified problems. In any instance where the analysis of samples by the State Laboratory indicates the presence of illegal stretching agents in petrol, Revenue will take swift and robust action and pursue prosecutions against alleged offenders where possible. I am satisfied that the Revenue Commissioners are undertaking a wide-ranging and effective programme of action against all forms of fuel fraud and am assured that combating this illegal activity will continue to be a key priority for them.
89. Deputy Michael McNamara asked the Minister for Public Expenditure and Reform if he will provide the number of coastal protection and coastal repair works carried out in each county every year from 1 January 2012; the cost of each project; and if he will make a statement on the matter. [15005/15]
Amharc ar fhreagraThe identification and carrying out of necessary coastal protection works is a matter for each Local Authority. Local Authorities may carry out such works using their own resources. They may also apply to the Office of Public Works (OPW) for funding under the latter's Minor Flood Mitigation Works and Coastal Protection Scheme. The Scheme's eligibility criteria, including a requirement that any measures are cost beneficial, are published on the OPW website, www.opw.ie. It is not available for repair of damaged infrastructure or for maintenance of existing flood defence or coastal protection assets. A Local Authority may apply to the OPW for support under the scheme having regard to those eligibility criteria. Application forms are available on the OPW's website under Flood Risk Management and decisions are made having regard to the overall availability of funding for flood risk management.
Details on funding approved by the OPW for coastal protection works for each county from 2009 to the present is available on the OPW website under Flood Risk Management/Minor Works Scheme/Annual Lists of Minor Works Projects for which Funding has been Approved.
In relation to repairs to coastal protection infrastructure, significant funding was provided by the OPW to Local Authorities in 2014 in the context of the Government Decision of 11 February 2014 which allocated total funding of up to €19.6m for the repair of existing public coastal protection and flood defence infrastructure damaged in the severe weather in late 2013 and early 2014. The allocation of funding was based on submissions made by the relevant local authorities to the Department of the Environment, Community and Local Government. Details on the funding allocations by county and the actual drawdown of funding are also available on the OPW website on the Home Page under Latest News – Monthly Update: Drawdown of Funds Local Authorities Storm Damage Repairs.
The OPW does not have information on coastal protection or repair works that would have been carried out by the Local Authorities funded from their own or other (non-OPW) resources.
Information in relation to works on piers, harbours etc is a matter for the Department of Agriculture, Food and the Marine.
90. Deputy Tony McLoughlin asked the Minister for Public Expenditure and Reform if the Office of Public Works will consider if the old Garda Síochána barracks in Easkey in County Sligo can be taken over by the local community to provide a heritage centre in the village; and if he will make a statement on the matter. [14977/15]
Amharc ar fhreagraThe former Garda Station at Easkey, Co. Sligo has been identified for disposal and the necessary legal documentation has been submitted to the Chief State Solicitor's Office who are preparing a Contract for Sale. The property will be sold by public auction during the second half of 2015.
91. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the yield from the pension-related deduction in 2014; and if he will make a statement on the matter. [15086/15]
Amharc ar fhreagraThe public service Pension-related Deduction (PRD), which was introduced in March 2009 under the Financial Emergency Measures in the Public Interest Act 2009 is provisionally estimated to have yielded €891 million in 2014. This estimated total does not include non-Exchequer PRD receipts, as arising for example in the local government sector.
PRD is a progressively structured reduction to the pay of pensionable public servants with staff on higher pay rates impacted more adversely than those on lower rates. Given the significant yield each year, PRD is a critical component of the public service pay and pension measures adopted as part of our national fiscal consolidation. However it should be noted that a start has already been made on ameliorating the impact of PRD on public servants. As legislated for in the Financial Emergency Measures in the Public Interest Act 2013, and as provided for in the Haddington Road Agreement, the rate of PRD on the €15,000 to €20,000 band of pay received in a year fell from 5% to 2.5% on 1 January 2014. This cut is worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost.
