Written Answers Nos. 52-72
52. Deputy Ruth Coppinger asked the Tánaiste and Minister for Social Protection if she will extend payments under the fuel allowance, in view of the unseasonably colder weather after 3 April 2015; and if she will make a statement on the matter. [18739/15]
Amharc ar fhreagraThe fuel allowance is a payment of €20 per week for 26 weeks from October to April, to 415,000 low income households, at an estimated cost of €208 million in 2015. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.
My Department also pays an electricity or gas allowance as part of the household benefits package to 415,000 customers, at an estimated cost of €227 million in 2015.
I am not in a position to extend the criteria for these schemes or the current value of the allowances.
The best way to tackle fuel poverty in the long term is to improve the energy efficiency of the dwelling. My Department is currently working closely with the Department of Communications, Energy and Natural Resources on these issues and in moving forward the actions agreed in the Energy Affordability Strategy. The Better Energy Homes scheme provides support towards the installation of attic and wall insulation, and heating system upgrades including solar and thermal.
53. Deputy Jack Wall asked the Tánaiste and Minister for Social Protection the position regarding an application for one parent family payment in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [18741/15]
Amharc ar fhreagraThe one-parent family payment application of the person concerned was referred to a Social Welfare Inspector prior to decision by a deciding officer, in order to establish if the conditions of entitlement to one-parent family payment are fulfilled.
The Inspector’s report is now complete and the file has been referred to the Deciding Officer for decision this week.
54. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the reason a request by a person (details supplied) in Dublin 12 to do a safe pass course was denied until the person finds employment, when in fact the person had to turn down employment due to not having a safe pass certificate; and if this decision will be reviewed. [18745/15]
Amharc ar fhreagraThe person concerned made enquiries at Bishop’s Square Intreo Centre regarding attending a Safe Pass Course. He was advised that under the operational guidelines for the Training Support Grant which funds Safe Pass Courses, in order to qualify, an applicant must have a job offer or the potential of a job offer. Until such time as the person concerned can provide evidence of a job offer or a potential job offer this matter cannot be progressed.
55. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Social Protection the position regarding an application for a disability allowance in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [18784/15]
Amharc ar fhreagraThe application from the person concerned was disallowed on the grounds that her weekly means were deemed to be in excess of the statutory limit allowable in her case for disability allowance purposes. Notification of this decision issued on 15 April 2015.
The person concerned was advised of the option to submit further evidence for review or lodge an appeal directly to the Social Welfare Appeals Office. To date neither option has been exercised.
56. Deputy Brendan Smith asked the Tánaiste and Minister for Social Protection if she will confirm that the status of her Department's offices in Ballybay in County Monaghan will not be changed; that this office will continue to be located in Ballybay; and if she will make a statement on the matter. [18791/15]
Amharc ar fhreagraTwenty nine staff occupying two adjoining buildings on Main St. in Ballybay, Co. Monaghan were redeployed from the Department of Agriculture, Food and the Marine to the Department of Social Protection in July 2012. The staff are engaged in the processing of the Public Services Card. The current facilities are not considered appropriate for the existing business processes or to accommodate the recently expanded operation.
I am advised that the Office of Public Works have investigated all of the options in Ballybay and have inspected a number of properties, with a view to adapting a number of buildings to meet the Department of Social Protection's requirements. The position is that a significant investment would be required to bring the proposed properties up to modern standards. In addition, other technical surveys and reports, planning permission, fire certification and physical works would take approximately one year to complete. Unfortunately, this timeframe is not commensurate with the Department's business requirements and the need to establish a Public Service Card Centre in the County, which is badly needed and is now an urgent requirement. Consequently, neither my officials, nor the OPW, consider that the properties on offer in Ballybay could meet the requirements in terms of both cost and time and a decision has been made to move the current facilities to Monaghan Town and combine it with a public, customer facing facility to serve the people of Monaghan.
57. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection if she will examine an appeal for a carer's allowance in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [18811/15]
Amharc ar fhreagraThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 8th April 2015. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these papers have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral appeal hearing.
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.
58. Deputy Michael Fitzmaurice asked the Tánaiste and Minister for Social Protection if it is the case that the rate band changes introduced by her on 1 September 2012 militate disproportionately against working women when they reach pension age, as evidenced by the fact that approximately 61% of those negatively impacted by the rate band changes are women, and approximately 39% are men; while she may have sought to ensure that those who contribute more during their working lives benefit to a greater extent at pension qualification age, her views that she has created a moral hazard in the system, in so far as a person who has made no paid contribution whatsoever, and who has made no provision at all for their retirement, may now receive a more substantial pension as a recipient of the State pension (non-contributory) than those persons who have contributed towards the State pension (contributory) having worked intermittently, whenever and wherever possible; if she will act immediately to correct this anomaly; and if she will make a statement on the matter. [18830/15]
Amharc ar fhreagraThe State pension (contributory) is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid over their working life from when they first enter insurable employment until pension age are taken into account when assessing their entitlement and the level of that entitlement. The rate at which a State pension (contributory) is paid at is determined by the average number of contributions paid or credited per year, with tiered rates applying in respect of bands of contributions. For example, to qualify for the maximum personal rate, a person requires a yearly average of 48 or more contributions per year.
While new rate bands for State pension (contributory) were introduced from September 2012, it was already the case that bands existed for different levels of contribution, and that some people qualified for a higher rate of pension on the State pension (non-contributory). Therefore, this is not a new development. A person who qualifies for a reduced rate of SPC below the maximum SPNC rate does so because, in addition to their SPC, they have additional means over and above that contributory pension. If they did not, they would instead be paid the higher SPNC rate. Accordingly, they are not worse off as a result of paying their contributions and the PRSI system continues to provide good value for such workers.
Since the introduction of the State pension (contributory), men have been more likely to have a complete social insurance record than women, and yet, all of the main poverty indicators show that women over 65 experience poverty at the same or lower levels than men of the same age, despite many women having lower lifetime earnings than men. This is a result of the social protection system which awards entitlements based on contributions to the Social Insurance Fund by the claimant or his or her spouse, and provides assistance where people have no such PRSI record. Those with lower earnings and those with lesser contribution histories continue to obtain the best value for money from the Social Insurance Fund, e.g., a person with an average of only 20 contributions per year (i.e. 38% of the maximum) can receive a State pension of €196, i.e., a higher rate than the full rate in 2007.
It is not possible to state to what extent, if any, women were disadvantaged by the changes made in 2012 to new entrants to the State pension (contributory), as most of those whose State pension (contributory) entitlement would have been reduced, and these include both men and women, would have had access to other benefits. Such benefits would be either derived from their spouse’s contribution record, such as the widow’s pension (contributory) or qualified adult increase on his pension, or in their own right, such as the State pension (non-contributory).
Over time, there has been a very significant increase in female participation in the workforce, and this will impact on the gender profile of the various benefits claimed under the Irish pensions system.
For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory) which has a maximum personal rate of €219, or just over 95% of the maximum rate of the State pension (contributory). Alternatively, if a person’s spouse or civil partner is in receipt of a State pension (contributory) they may instead qualify for an Increase for a Qualified Adult of up to €206.30, which is just less than 90% of the maximum personal rate of the State pension (contributory).
59. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection if she will expedite a disability allowance application in respect of a person (details supplied) in County Kerry, as all relevant information has been submitted; and if she will make a statement on the matter. [18848/15]
Amharc ar fhreagraI confirm that the Department is in receipt of an application for disability allowance from the above named person on 16 April 2015. On completion of the necessary investigations on all aspects of the claim a decision will be made and the person concerned will be notified directly of the outcome.
The processing time for individual disability allowance claims may vary in accordance with their relative complexity in terms of the three main qualifying criteria, the person’s circumstances and the information they provide in support of their claim.
60. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Social Protection if she will expedite an application for invalidity pension in respect of a person (details supplied) in County Kildare, who has severe back problems and has been hospitalised for nine weeks; and if she will make a statement on the matter. [18852/15]
Amharc ar fhreagraThe person concerned has been awarded invalidity pension with effect from the 05 February 2015. Payment will issue to his nominated bank account on the 28 May 2015. Any arrears due from 05 February 2015 to 27 May 2015 (less any overlapping social welfare payment and/or outstanding overpayment) will issue in due course. The person in question was notified of this decision on the 12 May 2015.
61. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection if an overpayment in respect of a person (details supplied) in County Kerry will be reviewed; and if she will make a statement on the matter. [18863/15]
Amharc ar fhreagraIn order to have the rate of recovery of their overpayment reviewed, the person in question should forward a proposal on the amount of repayment they consider to be appropriate and affordable. In support of this proposal they should submit relevant details of their income and outgoings. These details should be forwarded to Debt Recovery Unit, Department of Social Protection, Government Buildings, Ballinalee Road, Longford.
62. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will address the issues raised in correspondence (details supplied) regarding the Living City Initiative; and if he will make a statement on the matter. [18733/15]
Amharc ar fhreagraThe Deputy will be aware that the Living City Initiative, which was announced in Finance Act 2013, has been extended to now include the cities of Dublin, Cork, Galway and Kilkenny as well the original target cities of Limerick and Waterford. The inclusion of these four cities within the Initiative followed the results of a thorough independent ex ante cost benefit analysis.
This Initiative is targeting particular areas of these six cities which are most in need of regeneration. The designated areas have been chosen following consultations with the relevant local authorities, other Government agencies and an independent adviser.
The Department will closely monitor the progress of the Initiative in the six cities, and will keep the suggestion of extending the relief further under review.
It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas in the six cities which are most in need of attention.
63. Deputy Pearse Doherty asked the Minister for Finance the reason a car, which has been fully approved under the national car test, must also pass a vehicle export examination before its owner may export it under the vehicle registration tax export repayment scheme. [18836/15]
Amharc ar fhreagraI am advised by the Revenue Commissioners that section 135D(1) of the Finance Act 1992 provides for a number of verification checks that must be carried out on a vehicle prior to its exportation. One of these checks is a physical examination to ensure that the vehicle is that which is declared for export and is generally in working order. The examination is neither equivalent to, nor a replacement for, the National Car Test. Comprehensive details of the requirements for the Export Repayment Scheme are on the Revenue website at the following link: http://www.revenue.ie/en/tax/vrt/export-repayment-scheme/faqs.html.
64. Deputy Michael McGrath asked the Minister for Finance in respect of the Residential Mortgage Arrears and Repossession Statistics for Quarter 4, 2014 published by the Central Bank of Ireland, the number of the 114,674 private dwelling home mortgage accounts classified as restructure-rescheduled that are currently meeting the terms of the restructuring-rescheduling arrangement, and are no longer regarded as being in arrears; and if he will make a statement on the matter. [18711/15]
Amharc ar fhreagraI am informed by the Central Bank that some 114,674 principal dwelling home (PDH) mortgage accounts were classified as restructured at end-December. Of these restructured accounts, 97,449 accounts (84.9%) were deemed to be meeting the terms of their current restructure arrangement. This means that the borrower is, at a minimum, meeting the agreed monthly repayments according to the current restructure arrangement.
The Central Bank also reported that some 78,418 (68.4%) restructured PDH accounts were not in arrears at end-December 2014. Restructured accounts in arrears include accounts that were in arrears prior to restructuring where the arrears balance has not yet been eliminated, as well as accounts that are in arrears on the current restructuring arrangement.
It is a positive development to note that the above data reflects a quarter-on-quarter increase of 4.3 per cent in PDH mortgage accounts which were classified as restructured for the last quarter of 2014, a development which I hope to see continued in future Central Bank quarterly bulletins.
65. Deputy Pearse Doherty asked the Minister for Finance the way the Strategic Banking Corporation of Ireland will be treated in the national accounts; and if he will make a statement on the matter. [18746/15]
Amharc ar fhreagraThe Strategic Banking Corporation of Ireland (SBCI) was established in 2014 and has since signed funding deals, recruited staff, signed lending contracts with two banks and appointed a board of directors. Most importantly the SBCI commenced lending to businesses in the real economy through AIB and Bank of Ireland at the start of March 2015. SMEs have already begun to access SBCI funds to grow and develop their businesses. More lending partners will join with the SBCI throughout the course of 2015 increasing choice for SMEs and driving competition in the markets for SME credit.
Eurostat determined that the SBCI should be classified in the general government sector from its inception in 2014. Further information regarding this decision can be located on Eurostat's website http://ec.europa.eu/eurostat/documents/1015035/6761701/Advice-2015-IE-Classification-of-Strategic-Banking-Corporation-of-Ireland.pdf/60a59485-1aff-4f8e-8864-143411c097d6.
As with any body classified in the general government sector, any borrowing undertaken by the SBCI from external third parties is included in general government debt. As the borrowing will be subsequently lent on to other parties, this is considered a loan asset and will be included in the calculation of net debt. The surplus or deficit of the SBCI will count towards the general government balance. The impact of the SBCI in the context of the overall general government balance is negligible.
The SBCI has been included in the March 2015 EDP return prepared by the Central Statistics Office. The SBCI has also been included in the general government forecasts published by my Department in the Spring Economic Statement and Stability Programme Update of April 2015.
66. Deputy Derek Nolan asked the Minister for Finance if he will put a special task force in place to propose ways of restricting persons trading on the black market, and the consequent evasion of taxes, and the impact on the Exchequer and legitimate businesses; and if he will make a statement on the matter. [18748/15]
Amharc ar fhreagraMy understanding of shadow economy (or black market) activity is that it is wide-ranging and it includes, not only illicit activity such as tobacco smuggling, oil laundering and counterfeiting, but also practices (much of which are facilitated within the cash economy) carried out by businesses such as suppressing sales and purchases, keeping cash payments 'off the books' and paying employees under an 'off the books' arrangement. Also within the shadow economy are those who are working while at the same time claiming social welfare benefits.
Individuals and businesses that operate within the shadow economy gain an unfair competitive advantage compared to legitimate, tax compliant businesses and they deprive the Exchequer of much needed revenues. The Deputy will be aware that I have introduced a number of specific measures in recent years aimed at countering the effects of shadow economy activity. These include:
- the licensing regime for auto fuel traders which was strengthened with effect from September 2011 to limit the ability of criminals to get laundered fuel onto the market;
- a new licensing regime for marked fuel traders which was introduced in October 2012 and which is designed to limit the ability of criminals to source marked fuel for laundering;
- requirements in relation to fuel traders' records of stock movements and fuel deliveries to ensure data is available to Revenue assist in supply chain analysis;
- a 'reckless trading' provision in Finance (No. 2) Act 2013 that makes a supplier who is reckless in supplying rebated fuel for a use connected with excise fraud liable for the duty evaded;
- strengthened provisions in the Finance Act 2014 to permit Revenue to refuse or revoke a mineral oil trader's licence where the trader does not comply with excise law, does not maintain adequate stock management systems and records, or provides false or misleading information.
I am satisfied as regards Revenue's commitment to tackling shadow economy activity. That commitment is evidenced by the following key statistics for 2014 that were recently published in the Commissioners' Annual Report for that year:
- over 437,000 compliance interventions yielding over €610 million;
- 6,158 drug seizures and seizure of 201,140 litres of illicit fuel;
- Seizure of 53.4 million cigarettes and 9,824 kg of tobacco, valued at €25.47 million and €4.22 million respectively.
The Commissioners' Annual Report also highlights the significant programme of work that is ongoing and aimed at specific aspects of the shadow economy including detection of fiscal fraud, smuggling and illegal drugs as well as targeting sectors of the economy that traditionally have been susceptible to shadow activity, specifically cash businesses such as the hospitality sector and white collar cash. I am satisfied that there is a high level of co-operation and joint working between the various State agencies who are charged with tackling the shadow economy and that the arrangements in place at an operational level are working effectively.
There is extensive co-operation between Revenue and An Garda Síochána in combating the illicit trades of tobacco and oil smuggling and the relevant agencies in the State also work closely with their counterparts in Northern Ireland, through cross-border groups to target the organised crime groups that are responsible for large proportions of these illicit markets. There is also strong collaboration between Revenue, the Department of Social Protection and the National Employment Rights Authority as evidenced by joint operations in relevant sectors focusing on compliance in relation to employment taxes. I am also informed that the Revenue website has recently been extended to include a shadow economy webpage where information to report such activity is provided. Any information as regards shadow economy activity can be reported to Revenue, either via the Revenue website or directly (including anonymously) to any Revenue office.
The Deputy may be aware that the British Irish Parliamentary Assembly recently published a report on Cross-border Police Cooperation and illicit trade. The report found that:
- the current level of cooperation between An Garda Síochána and the PSNI was excellent with evidence that both police forces worked closely together, formally and informally, on many issues.
- the joint Cross-border Policing Strategy, first launched in 2010, has contributed to the detection of criminal activity and better public safety across the island of Ireland by enhancing the policing capabilities of both police services.
- the Committee welcomed the development of the multi-agency Cross-border Fuel Fraud Enforcement Group and the Cross-border Tobacco Fraud Enforcement Group since its last inquiry.
Having regard to the legislative measures in place, the on-going work and focus of the Revenue Commissioners in tackling shadow economy activity in all its manifestations and the significant on-going cross-border cooperation between agencies, I do not propose to establish a special task force to tackle the shadow economy on the lines suggested by the Deputy.
67. Deputy Pearse Doherty asked the Minister for Finance the change in millions of euros in the Exchequer deficit in the period January 2015 and April 2015, compared to the same period in 2011; and the contribution to that change arising from the change in current receipts, and the change in current expenditure. [18770/15]
Amharc ar fhreagraI would point out that the Exchequer returns containing the information requested by the Deputy are available on my Department's website at the following link:
http://www.finance.gov.ie/what-we-do/public-finances/exchequer-returns/exchequer-statements
However, the table below sets out the Exchequer Deficit, current receipts and current expenditure at end-April 2011 and at end-April 2015 respectively.
Current Receipts, Current Expenditure and Exchequer Deficit:
|
- |
End-April 2011 |
End-April 2015 |
Change |
|
- |
€m |
€m |
€m |
|
Current Receipts |
|||
|
Tax Revenue |
9,611 |
12,864 |
+3,253 |
|
Non-Tax Revenue |
411 |
395 |
-16 |
|
Total Current Receipts |
10,022 |
13,259 |
+3,237 |
|
Current Expenditure |
|||
|
Voted Expenditure |
13,908 |
13,047 |
-861 |
|
Other Non-Voted Expenditure |
2,818 |
4,337 |
+1519 |
|
Total Current Expenditure |
16,725 |
17,384 |
+659 |
|
Current Balance |
-6,703 |
-4,125 |
+2578 |
|
Exchequer Deficit |
-9,913 |
-2,319 |
+7594 |
68. Deputy Pearse Doherty asked the Minister for Finance the contribution in millions of euros to the change in the Exchequer deficit, in the period January 2015 to April 2015, compared to the same period in 2011, arising from the change in capital receipts and expenditure over that time. [18771/15]
Amharc ar fhreagraI would point out that the Exchequer returns containing the information requested by the Deputy are available on my Department's website at the following link:
http://www.finance.gov.ie/what-we-do/public-finances/exchequer-returns/exchequer-statements
The following table sets out the Exchequer Deficit, capital receipts and capital expenditure at end-April 2011 and at end-April 2015 respectively.
Capital Receipts, Capital Expenditure and Exchequer Deficit:
|
- |
End-April 2011 |
End-April 2015 |
Change |
|
- |
€m |
€m |
€m |
|
Capital Receipts |
|||
|
Other capital receipts |
786 |
3,687 |
+2,901 |
|
Capital Expenditure |
|||
|
Voted Expenditure |
934 |
672 |
-262 |
|
Other Non-Voted Expenditure |
3,062 |
1,209 |
-1,853 |
|
Total Capital Expenditure |
3,996 |
1,881 |
-2,115 |
|
Capital Balance |
-3,210 |
+1,806 |
+5,016 |
|
Exchequer Deficit |
-9,913 |
-2,319 |
+7,514 |
69. Deputy Pearse Doherty asked the Minister for Finance the contribution in millions of euros to the change in the Exchequer deficit in the period January 2015 to April 2015, compared to the same period in 2011, arising from the change solely in tax revenues; and the principal contributors, in millions of euros from the various tax heads to that change in tax revenues. [18772/15]
Amharc ar fhreagraI would point out that the Exchequer returns containing the information requested by the Deputy are available on my Department's website at the following link:
http://www.finance.gov.ie/what-we-do/public-finances/exchequer-returns/exchequer-statements
However, the tables below set out the position in terms of Exchequer Deficit and total tax revenues collected at end-April 2011 and at end-April 2015 respectively.
Exchequer Deficit and Total Tax Revenue:
|
- |
End-April 2011 |
End-April 2015 |
Change |
|
- |
€m |
€m |
€m |
|
Total Tax Revenue |
9,611 |
12,864 |
+3,253 |
|
Exchequer Deficit |
-9,913 |
-2,319 |
+7,594 |
Total tax revenue broken down by tax head:
|
- |
End-April 2011 |
End-April 2015 |
Change |
|
- |
€m |
€m |
€m |
|
Customs |
81 |
104 |
+23 |
|
Excise Duty |
1,412 |
1,620 |
+208 |
|
Capital Gains Tax |
76 |
76 |
- |
|
Capital Acquisition Tax |
30 |
38 |
+8 |
|
Stamps |
174 |
293 |
+119 |
|
Income Tax |
4,132 |
5,749 |
+1,617 |
|
Corporation Tax |
289 |
629 |
+340 |
|
Value Added Tax |
3,387 |
4,030 |
+643 |
|
Training and Employment Levy |
135 |
171 |
+36 |
|
Unallocated Tax Receipts |
30 |
61 |
+31 |
|
Local Property Tax |
n/a |
264 |
+264 |
|
Total Tax Revenue |
9,611 |
12,864 |
+3,253 |
70. Deputy Pearse Doherty asked the Minister for Finance the cost of printing each note of each denomination of euro notes, that is, the cost of printing the €5, €10 note and so on. [18773/15]
Amharc ar fhreagraAs per the recently published Central Bank Annual Report 2014, the Central Bank outlines that in 2014 a total of 326 million banknotes were supplied by the Central Bank to the market, comprising 57 per cent new and 43 per cent re-issued banknotes. This was a 6 per cent reduction on the 345 million banknotes issued in 2013.
Under the ECB pooled production arrangements, the Central Bank was allocated the production of 163 million €5 banknotes in 2014. Other denominations of banknotes are received from other National Central Banks and issued by the Central Bank as required.
The Central Bank have advised that the information requested by the Deputy in relation to the cost of printing each note of each denomination is not currently available. However, this information is being collated and will be issued to the Deputy in due course.
71. Deputy Lucinda Creighton asked the Minister for Finance if he or his Department were ever informed of, or made aware of, any allegations concerning write-downs being provided on debt for personal borrowings in the Irish Bank Resolution Corporation; if he will provide the nature of these allegations, if they occurred, and the subsequent action that was taken by him or his Department; and if he will make a statement on the matter. [18780/15]
Amharc ar fhreagra72. Deputy Lucinda Creighton asked the Minister for Finance further to Parliamentary Question No. 69 of 30 April 2015, if he will ensure that as part of the directions issued to the Special Liquidator to perform a review and produce a report concerning activities and management decisions, this will include a review into any write-downs on debt for personal borrowings; if he will confirm that, irrespective of the impact on ultimate returns to the taxpayer, any decision which resulted in a borrower receiving a write-down on personal borrowings will also be reviewed; if he accepts that all write-downs on personal borrowings by the Irish Bank Resolution Corporation would give rise to public concern; and if he will make a statement on the matter. [18782/15]
Amharc ar fhreagraI propose to take Questions Nos. 71 and 72 together.
The relationship framework in place between IBRC and the Minister for Finance recognised the separation of the Minister and the bank and limited the Minister's intervention in the conduct of bank business to that necessary to protect the public interest.
The bank Board retained full responsibility and authority for all of the operations and business of the bank in accordance with its legal and fiduciary duties and retained the responsibility and authority for ensuring compliance with the regulatory and legal obligations of the bank. The bank also remained licensed and regulated by the Central Bank and was obligated to operate at all times in compliance with Regulatory Requirements, including any codes of conduct put in place by the Central Bank.
Taking into account this existing oversight, and while the Board retained responsibility for day to day operations, the relationship framework was put in place to which set out the instances in which the Bank were required to consult with the Minister for Finance on certain issues outside the ordinary course of business.
Any arrangement entered into between IBRC and an individual borrower, including the write down of debt, which did not trigger mandatory consultation with the Minister for Finance under the relationship framework remained a matter for the Board of the bank at that time. It was the fiduciary responsibility of the Board to ensure that all matters in IBRC were managed in the best way possible to achieve the best result for the State.
This being the case, if the attention of my officials or myself was drawn to the specifics of an individual case outside of the scope of the relationship framework, it would have been made clear that this was a commercial matter for the bank. Of course if I or my officials became concerned around any such issues we would have explored any such issues further with management.
The scope of the transaction review which I have directed the Special Liquidators to undertake will cover transactions that resulted in a capital loss to IBRC of at least €10 million during the period between 21st January 2009, the date of the nationalisation of IBRC, and 7th February 2013, the date of the appointment of the Special Liquidators to IBRC; or are specifically identified by the Special Liquidator as likely to give rise to potential public concern, in respect of the ultimate returns to the taxpayer. Given this, any personal borrowings which resulted in a capital loss to IBRC of least €10 million during the specified period will be reviewed.
If the Deputy happens to be in possession of any evidence of improper behaviour, I would encourage her to take such information to the appropriate authorities.
The following information was provided under Standing Order 40A
Please find a revised reply below. As per the original reply provided, this reply will also incorporate Parliamentary Question No. 72. Please note, given that certain parts of the original reply are no longer applicable following the establishment of the Commission of Investigation into certain decisions, transactions and activities entered into by IBRC, I have provided the revised answer as of today's date [26 June 2015].
Revised reply to Parliamentary Question No. 71 and Parliamentary Question No. 72
I propose to take Parliamentary Question No. 71 and Parliamentary Question No. 72 together.
The relationship framework in place between IBRC and the Minister for Finance recognised the separation of the Minister and the bank and limited the Minister's intervention in the conduct of bank business to that necessary to protect the public interest.
The bank Board retained full responsibility and authority for all of the operations and business of the bank in accordance with its legal and fiduciary duties and retained the responsibility and authority for ensuring compliance with the regulatory and legal obligations of the bank. The bank also remained licensed and regulated by the Central Bank and was obligated to operate at all times in compliance with Regulatory Requirements, including any codes of conduct put in place by the Central Bank.
Taking into account this existing oversight, and while the Board retained responsibility for day to day operations, the relationship framework was put in place which set out the instances in which the bank were required to consult with the Minister for Finance on certain issues outside the ordinary course of business.
