Written Answers Nos. 283-302
283. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection the position regarding social welfare allowance and benefit in respect of persons (details supplied) in Dublin 13; and if she will make a statement on the matter. [15734/15]
Amharc ar fhreagraThe household in question is in receipt of disability allowance consisting of maximum basic rate and increases for a qualified adult and three children; a half-rate carer’s allowance in respect of one care recipient; domiciliary care allowance in respect of one child; annual respite care grant; household benefits package and a fuel allowance during the fuel season.
The household appears to be in receipt of the full range of DSP entitlements in accordance with their circumstances as far as the Department knows them.
If the couple concerned believes they may qualify for additional supports or if there are circumstances of which the department is not aware, they should contact their local citizens information service for advice about making the appropriate additional applications.
285. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection if she will provide an update on the preparations for the administration of the water conservation grant; and if she will confirm if or which functions will be outsourced. [15745/15]
Amharc ar fhreagraA Water Conservation Grant of €100 will be paid beginning in September 2015 to households that have registered with Irish Water by 30th June 2015. The Grant will be administered and paid by the Department of Social Protection on behalf of the Department of the Environment, Community and Local Government. The Grant will be paid to the occupier who registers with Irish Water in respect of a principal, private residence. Applications for the grant will be accepted from the end of August until early October.
The Department is in ongoing consultation with the Department of the Environment, Community and Local Government and the Department of Public Expenditure and Reform with regard to the staffing and funding needed to administer the scheme. The administration and payment of this grant is a significant project for the Department as it will require the development and implementation of IT systems and various customer support and communications services. Some external assistance will be needed with these elements of the project and the requisite procurement exercises for same are underway. Every effort is being made to maximise efficiencies in this regard.
A website providing information for the public has been launched at www.watergrant.ie.
286. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection her views on a matter (details supplied) regarding the role of post offices in delivering her Department's payments; and if she will make a statement on the matter. [15806/15]
Amharc ar fhreagraThe Department of Social Protection will pay over €50m to An Post under a contract for cash payment services to welfare customers this year. This contract which may be extended up to December 2019 will provide continuity of payments to customers at Post Offices.
We are all aware of the general societal trend to electronic payments. This trend undeniably presents a challenge for the current business model of An Post. In this context I am pleased to note that An Post has advertised for services relating to a new payments and transaction account. I look forward to that account becoming available in the not too distant future as it will provide alternative payment opportunities for the Department’s customers and enable An Post to meet its future business needs in an electronic payments environment.
Issues relating to the remuneration of Postmasters are a matter for An Post and my colleague the Minister for Communications, Energy and Natural Resources in the first instance, bearing in mind that An Post must continue to meet the agreed service level standards with this Department for contracted services.
287. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Social Protection the proposed changes in the Money Advice and Budgeting Service locally and nationally; the number of cases dealt with annually by location; the cost of delivery of this service at each such location; the reason for the proposed changes; the changes proposed for County Louth and east County Meath; if she will respond to the issues raised in correspondence (details supplied); and if she will make a statement on the matter. [15818/15]
Amharc ar fhreagraAt the outset, I wish to assure the Deputy that the Government is totally committed to maintaining and strengthening MABS and its local delivery of services. While work is underway exploring how to optimise resources and governance arrangements to the greatest extent possible, I can also assure the Deputy that there will be no diminution of locally-provided services to the public, no closure of service locations, and no staff redundancies. In fact, the aim of this exploration is to ensure that any efficiencies and savings achieved in governance arrangements can be used to expand and enhance local service delivery.
The Citizens Information Board (CIB) is the statutory body responsible for providing information, advice (including money and budgeting advice service) and advocacy services on a wide range of public and social services. CIB delivers on this remit through a network of delivery partners which includes 51 local Money Advice and Budgeting Services (MABS) and 42 local Citizens Information Services (CIS). In 2014, €15.073m was allocated to the 51 local MABS companies, which had an active client caseload of some 20,000. A breakdown of cases handled by the 51 local companies and the allocation for each company is included in the Appendix. In 2015 the CIB has been allocated a budget of €46m of which some €17.9 million is allocated to the MABS network of companies.
There are over 600 permanent staff, approximately 200 scheme workers and an estimated 2,000 volunteers working for the 93 independent companies in the network (51 MABS and 42 CISs). Each of these companies has a separate voluntary Board of Management, comprising an average of 9.2 members per Board resulting in a governance structure of over 800 people. The maintenance of such an unwieldy company and Board structure is no longer sustainable from an organisational or governance perspective and the resource effort required could otherwise be directed towards improved service delivery to citizens. Therefore, as part of the implementation of its Strategic Plan 2012-2015, CIB commissioned a feasibility study to identify options for dealing with this issue through greater organisational consolidation and/or integration of its delivery partners. This work was carried out by a company called Pathfinder and overseen by a Steering Group, comprising national representatives from MABS staff and Boards, Citizens Information Services staff and Boards, and staff from the Citizens Information Board. The work included extensive and comprehensive consultation with all stakeholders, including representatives of CIB's delivery partner services (MABS and CIS) at local level. It identified a number of options for consideration. Following on from this, the Board of CIB agreed to the establishment of a Design Group tasked with outlining and recommending possible new structural models. The Design Group includes members of the voluntary boards and staff of a number of the MABS and CIS services, together with representation from CIB management. Submissions were sought by CIB from the representatives of Boards and staff of MABS and CIS, to inform the deliberations of the Design Group.
The Design Group recently furnished a progress report on its deliberations to the CIB executive, which in turn communicated an update to its network of service delivery partners. The Design Group has identified, as an option for consideration by the Board of CIB in due course, that the 51 Boards of MABS companies and the 42 Boards of CIS services could be consolidated across six (6) regions, resulting in six (6) independent MABS companies and Boards, and six (6) independent CIS companies and Boards, all reporting to the board of CIB. However, it is important to note that any such consolidation would be at the Board level only. All existing MABS offices would remain unaffected. Local service delivery and personnel would not be impacted and would continue as before. It may be possible to take any savings that arise and use them for enhancing local service delivery or indeed offering additional services. It is also important to note that neither this option nor any alternative has yet been considered by the Board of CIB. Accordingly, no decisions have been made by the Board and no proposal has been formally made to my Department for consideration. Therefore, it is not possible at this juncture to speculate on what changes may occur in the governance of any of the services in any location. It is expected that the Design Group proposal, when further developed, will be formally submitted to the Board of CIB for its consideration.
APPENDIX 1
|
MABS |
Funding (2014) |
Active Client caseload on 31/12/2014 |
|
Arklow |
230,200 |
191 |
|
Athlone |
159,300 |
236 |
|
Ballymun |
379,700 |
437 |
|
Blanchardstown |
354,300 |
506 |
|
Bray |
348,000 |
447 |
|
Carlow |
339,800 |
876 |
|
Cavan |
278,300 |
704 |
|
Charleville |
199,800 |
210 |
|
Clare |
281,200 |
632 |
|
Clondalkin |
371,600 |
373 |
|
Cork |
435,400 |
896 |
|
Drogheda |
176,654 |
203 |
|
Dublin 10 & 20 |
371,287 |
244 |
|
Dublin 12 Area |
292,200 |
198 |
|
Dublin North City |
290,279 |
244 |
|
Dublin North East |
280,095 |
107 |
|
Dublin South East |
299,300 |
284 |
|
Dun Laoghaire |
228,000 |
92 |
|
Dundalk/Oriel |
250,660 |
383 |
|
Dundrum/Rathfarnham |
337,686 |
202 |
|
Fingal (North County) |
310,900 |
343 |
|
Finglas/Cabra |
342,100 |
178 |
|
Kerry |
520,592 |
853 |
|
Kildare |
475,800 |
447 |
|
Kilkenny |
282,400 |
605 |
|
Laois |
216,500 |
222 |
|
Leitrim |
206,990 |
284 |
|
Liffey South West |
373,800 |
190 |
|
Limerick |
386,199 |
560 |
|
Longford |
173,817 |
251 |
|
Meath |
299,261 |
635 |
|
Monaghan |
263,800 |
473 |
|
Mullingar |
192,090 |
306 |
|
North Cork |
305,000 |
485 |
|
North Donegal |
370,500 |
243 |
|
North Galway |
234,800 |
302 |
|
North Mayo |
212,400 |
269 |
|
North Tipperary |
259,900 |
395 |
|
Offaly |
238,979 |
211 |
|
Roscommon |
194,300 |
217 |
|
Sligo |
251,500 |
291 |
|
South Donegal |
150,800 |
197 |
|
South Galway |
516,900 |
758 |
|
South Mayo |
287,600 |
215 |
|
South Tipperary |
376,700 |
534 |
|
Tallaght |
316,829 |
733 |
|
Waterford |
503,600 |
799 |
|
West Cork |
287,400 |
350 |
|
West Donegal |
126,800 |
245 |
|
West Waterford |
166,254 |
337 |
|
Wexford |
324,900 |
605 |
|
Total |
€15,073,171 |
19,998 |
288. Deputy Michael Lowry asked the Tánaiste and Minister for Social Protection the reason a decision has not issued in the past six years on an appeal against an unsuccessful application for an invalidity pension in respect of a person (details supplied) in County Tipperary who received occupational injury benefit and illness benefit and who is in receipt of invalidity pension from her Department for a number of years; the reason for the delay in processing same; and if she will make a statement on the matter. [15821/15]
Amharc ar fhreagraI am advised by the Social Welfare Appeals Office that the disablement benefit appeal of the person concerned was registered on 1st September 2010. An oral hearing was scheduled for 25th July 2011 but this was postponed at the request of the appellant’s employer as a case on the matter was open in the High Court. In the circumstances, the Appeals Officer agreed to the postponement pending the conclusion of the High Court proceedings and notified the two parties involved (the appellant and his employer) in writing.
I am advised that, in the intervening period, the Appeals Officer has written to the appellant on at least six occasions and to the appellant’s employer on at least eight occasions seeking to ascertain the status of the High Court proceedings. A further letter will shortly issue to both parties.
I am advised that, as soon as the Appeals Officer receives confirmation from the parties that the High Court proceedings have concluded an oral hearing of the appeal will be arranged as a matter of priority.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
289. Deputy Michael Creed asked the Tánaiste and Minister for Social Protection if an application for invalidity pension refused by her Department will now be appealed in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [15826/15]
Amharc ar fhreagraAn application for Invalidity Pension by the person concerned was disallowed by a Deciding Officer of the Department on 22th December 2014. I am informed by the Social Welfare Appeals Office that there is no trace of any appeal against this decision having been received from the person concerned.
In the normal course, an appeal against the decision of a Deciding Officer must be made within 21 days of a decision being notified. Appeals received outside of this time limit may be accepted at the discretion of the Chief Appeals Officer. This limit is not rigidly enforced but in view of the length of time which has elapsed since the person concerned was notified of the decision and in the absence of any explanation for the failure to submit an appeal within the prescribed timeframe, I am advised by the Social Welfare Appeals Office that it is unlikely that an appeal would be accepted at this late stage.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.
290. Deputy John McGuinness asked the Minister for Finance if an application for a primary medical certificate now under appeal will be expedited and approved in respect of a person (details supplied) in County Kilkenny. [15287/15]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT (up to a certain limit) on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, assistance with fuel costs, and an exemption from Motor Tax.
To qualify for the Scheme, an applicant must have a permanent and severe physical disability within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations (S.I. 353 of 1994) and satisfy one of the six qualifying criteria outlined in the Regulations:
- be wholly or almost wholly without the use of both legs;
- be 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;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have 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. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations 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. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations.
291. Deputy Pearse Doherty asked the Minister for Finance his views on the assessment made in an article (details supplied) that if the company referred to was forced to pay back tax due to the Irish Exchequer because of an infraction of state aid rules, the amount could be up to $6 billion; and if he will make a statement on the matter. [15155/15]
Amharc ar fhreagraMy officials are continuing to engage fully with the ongoing state aid investigation, and we have comprehensively addressed the Commission's concerns making it clear that the appropriate amount of Irish tax was charged in accordance with the relevant legislation.
I am still firmly of the view that there was no breach of State aid rules in this case and we will continue to defend all aspects of the case.
It therefore would not be appropriate to comment on media speculation as to what aid, if any, the company might have to repay in the event of a finding of state aid and I do not intend to do so.
It is important to emphasise that the Commission have only opened a formal investigation at this stage; they have not made a final determination on state aid in respect of Ireland.
However, in the event that the Commission does form the view that there was state aid, Ireland is entitled to challenge this decision in the European Courts. As I and my colleagues in Government have already indicated, we will take that course of action, if necessary, and vigorously defend the Irish position.
292. Deputy Terence Flanagan asked the Minister for Finance if he will address a matter (details supplied) regarding mortgage interest rates; and if he will make a statement on the matter. [15167/15]
Amharc ar fhreagra302. Deputy Finian McGrath asked the Minister for Finance his views on a matter (details supplied) regarding variable interest rates; and if he will make a statement on the matter. [15539/15]
Amharc ar fhreagraI propose to take Questions Nos. 292 and 302 together.
At the outset, I would like to confirm to the Deputy that the lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. I, as Minister for Finance, have no statutory role in relation to regulated financial institutions setting interest rates. The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned. Each institution determines the rate it charges its customers, depending on a number of factors such as cost of funds and commercial considerations (such as competition, risk pricing and the impact on deposit rates).
The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations. However, the Central Bank has no statutory role in the setting of interest rates by regulated entities, apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997 and the requirement to be notified of penalty or surcharge interest imposed in respect of arrears.
Nonetheless, the issue of regulation of interest rates remains a policy area under active review and has been the subject of recent correspondence between the Department of Finance and the Central Bank. The current position is that the Central Bank does not have new proposals for the additional regulation of interest rates. However, as I have stated in previous Parliamentary Questions, a former Deputy Governor indicated that, within its existing powers and through the use of persuasion, the Central Bank would continue to engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds and this is a course of action I expect the Central Bank to continually appraise.
That said, the Deputy should be aware that the Governor of the Central Bank, Patrick Honohan, stated last November that in Ireland, as in most advanced economies, it has long been understood that tight administrative control over the rates charged by banks would be counterproductive in ensuring a sufficient flow of properly priced credit on a lasting basis. Such control would strongly discourage new entrants when, in fact, ongoing competition in the banking sector will be crucial in ensuring that the economy is provided with efficient and cost effective banking services. In this regard, there have been some movements on mortgage interest rates of late by a number of institutions which suggest that the market may be entering a new and more competitive phase.
In addition, the Central Bank (Supervision and Enforcement Act) 2013 introduced changes to Section 149 of the Consumer Credit Act 1995 which regulates fees and charges in order to attract new entrants to the Irish banking sector and there is some evidence of improvements in the banking sector with a number of institutions introducing new products and adapting their business model. In the last 12 months there have been a number of new entrants to the Irish mortgage market bringing additional and welcome competition to this sector.
I should add that myself and the Governor of the Central Bank meet regularly, the latest of these meetings took place on 2 April. Among the items discussed was the issue of mortgage interest rates. The Governor provided an update on the ongoing work that he and his officials are carrying out on the issue of the standard variable rates charged by the lenders.
We noted that the SVRs charged in Ireland are higher than other euro area countries and have not fallen in line with ECB wholesale rates. The Central Bank will continue to research why this is the case and will publish results shortly. The Governor will update me on progress in due course.
293. Deputy Michael McGrath asked the Minister for Finance the reason the cost of attending a periodontal consultant cannot be claimed on the Med 2 form, while the cost of subsequent actual treatment can; his plans to address this issue; and if he will make a statement on the matter. [15272/15]
Amharc ar fhreagraSection 469 of the Taxes Consolidation Act 1997 provides relief for health expenses incurred by an individual on his own behalf or on behalf of others. In this regard health expenses are defined as expenses incurred in the provision of health care.
Health care means prevention, diagnosis, alleviation or treatment of an ailment, injury, defect or disability, but specifically excludes routine dental treatment which is defined as the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures.
Health expenses include expenses representing the cost of the services of a practitioner and maintenance or treatment necessarily incurred in connection with the services of a practitioner. A practitioner includes a person who is registered under section 43 of the Medical Practitioners Act 2007 or under section 26 of the Dentists Act 1985. Therefore, while routine dental treatment does not qualify for tax relief, where other non-routine dental procedures are undertaken, the services of a practitioner (including the cost of attendance), registered under the Medical Practitioners Act 2007 or the Dentists Act 1985, and the diagnostic procedures carried out on the advice of such a practitioner would qualify for relief.
294. Deputy Brendan Griffin asked the Minister for Finance his views on a matter regarding the purchase of a property (details supplied) in County Kerry; and if he will make a statement on the matter. [15308/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that having regard to taxpayer confidentiality, they are not in a position to comment on the tax affairs of a third party. It is a matter for any such party to make direct contact with Revenue if they have an issue of concern.
295. Deputy Pearse Doherty asked the Minister for Finance the legal basis on which the Central Bank of Ireland can impose greater capital requirements on banks that do not reach the mortgage arrears resolution targets; and if he will make a statement on the matter. [15333/15]
Amharc ar fhreagra296. Deputy Pearse Doherty asked the Minister for Finance if the Central Bank of Ireland can impose greater capital requirements on banks that do not meet the mortgage arrears resolution target, as long as that bank is not in breach of any of element of the capital requirements directive or any other regulation; and if he will make a statement on the matter. [15334/15]
Amharc ar fhreagra297. Deputy Pearse Doherty asked the Minister for Finance if all Irish banks that participate in the mortgage arrears resolution targets are currently meeting all regulations that, if not met, would allow the Central Bank of Ireland to impose greater capital requirements under regulation 70 of the 2006 regulations; and if he will make a statement on the matter. [15335/15]
Amharc ar fhreagraI propose to take Questions Nos. 295 to 297, inclusive, together.
The Capital Requirements Regulation and Directive IV (CRR/CRD IV) introduced a number of new macro-prudential instruments and powers. The Regulation was directly applicable in Member States when the legislation entered into force on 1 January 2014, and the CRD IV Directive was transposed into Irish law by the Minister for Finance on 31 March 2014. The Central Bank of Ireland was designated as the authority with competence to perform the functions under the CRR and CRD IV including macro prudential powers such as imposing a countercyclical capital buffer, systemically important institutions buffers and the ability to tighten a range of micro-prudential instruments. Following the introduction of the Single Supervisory Mechanism (SSM) on 4 November 2014, the SSM took overall responsibility for setting bank's regulatory capital requirements. Nonetheless, the Central Bank, through its participation in the SSM, still plays a significant role in determining regulatory capital requirements.
Tackling mortgage arrears is a priority for the Government. A whole-of-Government approach has been adopted in addressing the issue with a view to maximising the level of loan restructuring arrangements and minimising the number of home repossessions.
The Central Bank is also continuing to take action in this area. On 2 April the Central Bank reported that the lenders covered by the Mortgage Arrears Resolution Targets met the Central Bank requirements for Q4 2014. Furthermore, the Central Bank announced that it had determined that relying on common quarterly targets was no longer appropriate and instead they have written to each bank setting out new requirements, including that concluded sustainable solutions are in place for the vast majority of distressed borrowers by the end of 2015. The Central Bank remains focused on ensuring that the banks continue to improve issues identified in relation to their individual systems and procedures to ensure that they resolve arrears cases by implementing sustainable solutions for distressed borrowers in a fair manner.
298. Deputy Martin Heydon asked the Minister for Finance the reason for a change in the tax credits and rates in respect of a person (details supplied) in County Kildare; the way that person's situation can be adjusted or improved; and if he will make a statement on the matter. [15382/15]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that although all of the person's tax credits and standard rate band were allocated against his employment, further tax credits and standard rate band, to which the person was not entitled, were also allocated against the person's pension. These were withdrawn in March 2015 resulting in the additional tax deduction.
Revenue recently contacted the person concerned regarding the 2015 tax credit allocation, the situation was explained and an amended tax credit certificate was issued to him. This means that the person concerned will pay the correct amount of tax for 2015.
The Revenue Commissioners are currently reviewing the tax liabilities of the person concerned for earlier years and will contact the person concerned further in regard to this aspect shortly.
299. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland has estimated the number of residential and buy-to-let mortgage accounts on which no payment has been made for more than one year; and if he will make a statement on the matter. [15405/15]
Amharc ar fhreagraI am informed by the Central Bank of Ireland (CBI) that the requested breakdown in respect of PDH and BTL mortgage accounts on which no payment has been made for more than one year is unavailable. However, the CBI website contains data which shows the number of PDH and BTL accounts that are in arrears of more than 360 days. It can be accessed at the following link,
http://www.centralbank.ie/polstats/stats/mortgagearrears/Pages/Data.aspx
It is important to stress, however, that these figures do not necessarily imply that no payment has been made on these accounts for more than one year. It means that the arrears balance on these accounts is equivalent to 360 (or more) days past due. For example, if a consumer made half repayments for a period of two years, then an account would have an arrears balance equivalent to one year of missed repayments. It is also the case that my own Department's mortgage arrears data is set out in a similar way and does not include a breakdown of the number of PDH and BTL mortgage accounts on which no payment has been made for more than one year.
The numbers show that in the vast majority of cases engagement between banks and borrowers works. According to CBI data, almost 115,000 mortgage accounts were classified as re-structured at the end of 2014. This represented an increase of about 30,000 accounts over the course of 2014. 85% of these restructured mortgages were deemed to be meeting the terms of their restructure arrangement and for some solutions it reached well over 90%. Real solutions tailored to the needs of borrowers are available where engagement takes place. The challenge is to encourage borrowers and lenders who are in long term arrears situations to engage and reach solutions.
300. Deputy John McGuinness asked the Minister for Finance if Allied Irish Banks has quantified the total value of the individual loans approved to fund the Bellfry investments No. 1 to No. 6; the number of individual loans approved and the value of each; if these loans are being repaid in accordance with the terms and conditions of the loan approval; if the individual staff member or manager who sold this product or approved the loan received commission or other reward for the arrangement; if he will confirm the fees charged by the bank relative to this investment; the name of the nominee representing the investors; if the bank has any exposure relative to what is due to be repaid to it; and if he will make a statement on the matter. [15449/15]
Amharc ar fhreagraI have been informed by AIB that:
- All disclosures in relation to AIB's loan portfolios are contained in the Risk Management section (pages 60-138) of AIB's 2014 Annual Financial Report.
- AIB staff who were authorised to sell Belfry products were not paid commission or other reward for this arrangement.
- All fees charged by AIB in relation to the Belfry companies have been fully disclosed to investors. The initial placing fee/commission was detailed in the Investment Memorandum or Prospectus, as were AIB's annual fee arrangements. Additionally, AIB's fees have been detailed within the annual Financial Statements and these have been provided to investors since inception.
- Details of the nominee companies are contained within the Investment Memorandum or Prospectus for each company, and within the application forms which were signed by investors.
- AIB is not a shareholder in any of the Belfry companies.
301. Deputy Tony McLoughlin asked the Minister for Finance the reason the Permanent TSB Bank is allowed to continue to impose higher rates of interest on its Irish customers who have standard variable mortgages, in comparison with other European banks; the action he has taken to rectify this situation this; and if he will make a statement on the matter. [15474/15]
Amharc ar fhreagraThe lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. I have no statutory role in relation to regulated financial institutions passing on the European Central Bank interest rate change or to the mortgage interest rates charged. It is a commercial matter for each institution concerned. It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed position of mortgage holders or the manner in which individual banks choose to put forward mortgage propositions to potential customers or how that relates to existing customers.
That said, the issue of regulation of interest rates remains a policy area under active review and this has been the subject of recent correspondence between the Department of Finance and the Central Bank. The current position is that the Central Bank does not have new proposals for the additional regulation of interest rates.
The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations.
It should be noted that The Governor of the Central Bank and I meet regularly. At a recent meeting on the 2nd April, among the items discussed was the issue of mortgage interest rates. The Governor provided an update on the ongoing work that he and his officials are carrying out on the issue of the standard variable rates charged by the lenders.
The Governor and I noted that the SVRs charged in Ireland are higher than other euro area countries and have not fallen in line with ECB wholesale rates. The Central Bank will continue to research why this is the case and will publish results shortly. The Governor will update me on progress in due course.
