Written Answers Nos. 118 to 137
118. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding the high standard variable rates of mortgages; and if he will make a statement on the matter. [19300/15]
Amharc ar fhreagraThe lending institutions in Ireland - including those in which the State has a significant shareholding - are independent commercial entities. The setting of interest rates is a commercial decision for the institutions concerned. Nonetheless, the issue of regulation of interest rates remains a policy area under active review.
Competition between the banks will be crucial in ensuring that the price that the customers have to pay moves in the right direction. The banks must be convinced that customers will switch to other banks unless they reduce their Standard Variable Rates (SVRs).
I met with the Governor of the Central Bank on 2 April and SVRs were discussed. On foot of this, the Governor undertook to review the issue of the standard variable rates charged by the lenders.
The Department of Finance have now received the Central Bank's report on the influences on Standard Variable Mortgage pricing in Ireland.
I will meet with the six main banks this week to discuss the issue of SVRs and the Report is a valuable input in framing that discussion.
119. Deputy Pearse Doherty asked the Minister for Finance the contribution, in millions of euro, to the Exchequer deficit in the period January 2015 and April 2015 compared to the same period in 2011 arising from the change solely in non-tax revenues; and the principal contributors, in millions of euro, from the various heads to that change in non-tax revenues. [19312/15]
Amharc ar fhreagraI would point out that the information requested by the Deputy is currently 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 following set out the position in terms of Exchequer Deficit and total non-tax revenues collected at end-April 2011 and at end-April 2015 respectively.
Exchequer Deficit and Total Non-Tax Revenue:
|
|
End-April 2011 |
End-April 2015 |
Change |
|
|
€m |
€m |
€m |
|
Total Non-Tax Revenue |
411 |
395 |
-16 |
|
Exchequer Deficit |
-9,913 |
-2,319 |
+7,594 |
Total Non-Tax Revenue broken down by component:
|
|
End-April 2011 |
End-April 2015 |
Change |
|
|
€m |
€m |
€m |
|
National Lottery Surplus |
80 |
67 |
-13 |
|
Income from Credit Institutions (Financial Support Scheme) |
3 |
0 |
-3 |
|
Income from Credit Institutions (Eligible Institutions Guarantee) |
283 |
52 |
-231 |
|
Central Bank Issue of Coins |
0 |
3 |
+3 |
|
Total Surplus Incomes/Royalties |
366 |
121 |
-245 |
|
|
|
|
|
|
Local Loans Fund |
1 |
0 |
-1 |
|
Other Advances |
8 |
3 |
-5 |
|
Total Interest on Loans |
10 |
4 |
-6 |
|
|
|
|
|
|
E.S.B. |
0 |
203 |
+203 |
|
Other Dividends |
0 |
7 |
+7 |
|
Total Dividends |
0 |
210 |
+210 |
|
|
|
|
|
|
Property Registration Authority Fees |
8 |
20 |
+11 |
|
Motoring Fees |
5 |
2 |
-3 |
|
NDFA Act |
0 |
5 |
+5 |
|
Other Receipts collected by Departments etc. |
14 |
25 |
12 |
|
Miscellaneous |
4 |
1 |
-4 |
|
Pension levy |
4 |
5 |
+1 |
|
Public Service Pension Payments |
0 |
0 |
0 |
|
Irish Water State Guarantee Fee |
0 |
3 |
+3 |
|
Total Other Receipts |
35 |
60 |
+25 |
|
|
|
|
|
|
Total Non-Tax Revenue |
411 |
395 |
-16 |
Please note that figures are round to the nearest million and therefore rounding may effect totals.
120. Deputy Pearse Doherty asked the Minister for Finance the contribution, in millions of euro, to the change in the Exchequer deficit in the period January 2015 and April 2015 compared to the same period in 2011 arising from the change solely in voted expenditure; and the principal contributors, in millions of euro, from the various items of voted expenditure to that change in voted expenditure. [19313/15]
Amharc ar fhreagraI would point out that the information requested by the Deputy is currently 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 following set out the position in terms of Exchequer Deficit and total net voted expenditure for the period at end-April 2011 and at end-April 2015 respectively.
Exchequer Deficit and Net Voted Expenditure:
|
|
End-April 2011 |
End-April 2015 |
Change |
|
|
€m |
€m |
€m |
|
|
|
|
|
|
Voted Current Expenditure |
13,908 |
13,047 |
-861 |
|
Voted Capital Expenditure |
934 |
672 |
-262 |
|
Total Net Voted Expenditure |
14,841 |
13,719 |
-1,123 |
|
Exchequer Deficit |
-9,913 |
-2,319 |
+7,594 |
Total Net Voted Departmental Expenditure (Current and Capital) by vote group etc:
|
|
End-April 2011 |
|
End-April 2015 |
|
|
€m |
|
€m |
|
Agriculture, Fisheries and Food |
343 |
Agriculture, Fisheries and Food |
319 |
|
Arts, Sport and Tourism |
72 |
Arts, Heritage and the Gaeltacht |
83 |
|
Communications, Energy and Natural Resources |
67 |
Communications, Energy and Natural Resources |
37 |
|
Community, Rural and Gaeltacht Affairs |
98 |
Community, Rural and Gaeltacht Affairs |
n/a |
|
Defence |
272 |
Defence |
277 |
|
Education and Science |
2,887 |
Education and Skills |
2,632 |
|
Enterprise Trade and Employment |
243 |
Jobs, Enterprise and Innovation |
213 |
|
Environment, Heritage and Local Government |
400 |
Environment, Community and Local Government |
145 |
|
Finance Group |
343 |
Finance Group |
118 |
|
Public Expenditure and Reform |
n/a |
Public Expenditure and Reform |
255 |
|
Foreign Affairs |
237 |
Foreign Affairs and Trade |
177 |
|
Health and Children |
4,635 |
Health |
4,282 |
|
Children and Youth Affairs |
n/a |
Children and Youth Affairs |
368 |
|
Justice Group |
692 |
Justice Group |
688 |
|
Social and Family Affairs |
4,217 |
Social Protection |
3,764 |
|
Taoiseach's Group (including Legal Votes) |
56 |
Taoiseach's Group (including Legal Votes) |
49 |
|
Transport |
390 |
Transport, Tourism and Sport |
312 |
|
|
|
|
|
|
Recovery of advance to Social Insurance Fund |
110 |
Recovery of advance to Social Insurance Fund |
0 |
|
Total Net Voted Expenditure |
14,841 |
Total Net Voted Expenditure |
13,719 |
Please note that figures are round to the nearest million and therefore rounding may effect totals.
As the Deputy will be aware, since April 2011, there have been a number of new Departments established and significant restructuring and transferring of functions amongst other Departments. Therefore, it is not always possible to compare the previous vote group structure position at end-April 2011 with the current voted group structure at end-April 2015. However, at end-April 2015, total net voted expenditure has reduced by €1,122 million or 7.6% when compared to the same period in 2011.
121. Deputy Pearse Doherty asked the Minister for Finance the contribution, in millions of euro, to the change in the Exchequer deficit in the period January 2015 and April 2015 compared to the same period in 2011 arising from the change solely in non-voted expenditure; and the principal contributors, in millions of euro, from the various items of non-voted expenditure to that change in non-voted expenditure. [19314/15]
Amharc ar fhreagraI would point out that the information requested by the Deputy is currently 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 following tables set out the position in terms of Exchequer Deficit and total non-voted expenditure for the period at end-April 2011 and at end-April 2015 respectively.
Exchequer Deficit and Non-Voted Expenditure:
|
|
End-April 2011 |
End-April 2015 |
Change |
|
|
€m |
€m |
€m |
|
|
|
|
|
|
Non-Voted Current Expenditure |
2,818 |
4,337 |
+1,519 |
|
Non-Voted Capital Expenditure |
3,062 |
1,209 |
-1,853 |
|
Total Non-Voted Expenditure |
5,880 |
5,546 |
-333 |
|
Exchequer Deficit |
-9,913 |
-2,319 |
+7,594 |
Total Non-Voted Current Expenditure by component:
|
|
End-April 2011 |
End-April 2015 |
Change |
|
|
€m |
€m |
€m |
|
Interest |
2,082 |
3,035 |
+953 |
|
Other Debt Management Expenses |
62 |
50 |
-13 |
|
Total Service of National Debt |
2,144 |
3,084 |
+940 |
|
|
|
|
|
|
Contribution to EU Budget |
571 |
917 |
+346 |
|
Postal & Telecommunications Services Act 1983, section 46 |
13 |
0 |
-13 |
|
Payments to Marathon Petroleum Ireland Ltd |
3 |
0 |
-3 |
|
Election Expenses |
14 |
5 |
-9 |
|
Payments to Political Parties under the Electoral Acts |
5 |
5 |
0 |
|
Salaries , Pensions and Allowances |
14 |
13 |
-1 |
|
Oireachtas Commission |
34 |
33 |
-1 |
|
IDA & ADF Payments under Developments Banks Act 2005 |
18 |
21 |
+3 |
|
NDFA Act |
1 |
4 |
+3 |
|
Miscellaneous |
0 |
0 |
0 |
|
Pensions Insolvency Payment (Amendment) Scheme 2011 |
0 |
2 |
+2 |
|
Irish Fiscal Advisory Council |
0 |
0 |
0 |
|
Payments under Credit Institutions (Financial Support) Act 2008 |
0 |
2 |
+2 |
|
Transfer of Local Property Tax Receipts to Local Government Fund |
0 |
251 |
+251 |
|
Total Non-Voted Current Expenditure |
2,818 |
4,337 |
+1,519 |
Please note that figures are round to the nearest million and therefore rounding may effect totals.
Total Non-Voted Capital Expenditure by component:
|
|
End-April 2011 |
End-April 2015 |
Change |
|
|
€m |
€m |
€m |
|
Carbon Fund Act 2007 |
2 |
0 |
-2 |
|
Other Payments under Statute |
0 |
0 |
0 |
|
Promissory Notes issued under the Credit Institutions (Financial Support) Act 2008 |
3,060 |
0 |
-3,060 |
|
Total Other Capital Payments |
3,062 |
0 |
-3,062 |
|
|
|
|
|
|
Loans to Insurance Compensation Fund |
0 |
79 |
+79 |
|
Loans to Social Insurance Fund |
0 |
1,110 |
+1,110 |
|
Total Loans |
0 |
1,189 |
+1,189 |
|
|
|
|
|
|
Development Banks Act 2005 |
0 |
2 |
+2 |
|
Bretton Woods Acts 1957 - 1999 |
0 |
4 |
+4 |
|
European Investment |
0 |
14 |
+14 |
|
Total investment in International Bodies |
0 |
20 |
+20 |
|
|
|
|
|
|
Total Non-Voted Current Expenditure |
3,062 |
1,209 |
-1,853 |
Please note that figures are round to the nearest million and therefore rounding may effect totals.
122. Deputy Pearse Doherty asked the Minister for Finance his Department's estimate of the effect of all tax changes since the current Government came to office, in millions of euro, to the change in the Exchequer deficit in the period January 2015 and April 2015 compared to the same period in 2011 and the total change in tax revenues during that period. [19315/15]
Amharc ar fhreagraThe following table sets 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 |
The table following sets out the estimated full year cost or yield at the time of introduction in respect of the various tax packages introduced by this Government since 2011 to date. In addition, the costs or yields do not take account of any amendments or changes that may have been introduced in the associated Finance Acts, or amended to reflect changes in the estimated cost or yield as a result of delays in State Aid approval or commencement orders etc.
|
|
Total -cost/+yield €m |
|
Jobs Initiative 2011 |
-75 |
|
Budget 2012 |
+1,270 |
|
Budget 2013 |
+1,730 |
|
Budget 2014 |
+265 |
|
Budget 2015 |
-510 |
It is important to point out that the cost and yields stated above do not take account of the second round impact on aggregate demand. As the Deputy will be aware, the second round impact of stronger demand is greater tax yields.
In addition, I should point out that actual tax revenue outturns are driven by a number of factors such as the macroeconomic drivers, growth and strategic policy measures introduced to promote jobs and growth in the economy.
123. Deputy Pat Rabbitte asked the Minister for Finance further to Parliamentary Question No. 152 of 6 May 2015, the number of times in each of the past ten years a penalty was imposed on an employer under section 987 of the Taxes Consolidation Act 1997, as amended, for failure to comply with regulations under Chapter 4 of Part 42 relating to the collection and recovery of income tax under the pay as you earn system, in circumstances where a failure to keep and maintain a register of employees or to deduct and remit income tax in relation to employees arose from a misclassification by the employer of employees as being self-employed; the number of times an employer was prosecuted under section 1078 of the Taxes Consolidation Act, as amended, for knowing or wilful delivery or issuing of incorrect returns, statements, accounts or invoices, entailing a representation by the employer that certain employees were self-employed; and if he will make a statement on the matter. [19405/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that while they capture the various constituents of yield from their compliance interventions (income tax/PRSI/USC that ought to have been collected by employers under the PAYE system plus interest on late payment and penalties) involving non-operation by employers of the PAYE system, their records do not capture each of the separate or specific types of contraventions and penalties relating to those contraventions. On that basis, the more granular information sought by the Deputy as a follow up to Parliamentary Question No. 152 of 6 May 2015 is not available.
I am informed by the Revenue Commissioners that, while criminal prosecutions have been initiated against those filing incorrect returns, statements, accounts or invoices, such prosecutions did not arise solely from incorrect employer PAYE returns, records, etc. relating to payments made tax-free to individuals when such payments should have been made through the PAYE system.
I am further informed that the question of whether a contract between parties is one of a contract of service [i.e. an employee] or a contract for service [i.e. self-employed] depends on the facts and circumstances of each case and these are primarily matters to be discussed between the parties to the contract. As explained in my reply to Question No. 152 on 6 May 2015, when conducting compliance interventions, Revenue will take action to recover unpaid tax, interest, and penalties where warranted, in cases where there has been mis-classification of the status of the person carrying out the work on a contract.
124. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding the Consumer Credit Act 1995; and if he will make a statement on the matter. [19412/15]
Amharc ar fhreagraI have been informed by the Central Bank that it investigates specific complaints made and, where appropriate, will exercise its discretion to pursue a case under the Administrative Sanctions Procedure or a summary criminal prosecution. As to the question of how the Central Bank will exercise this discretion, the Central Bank has indicated that this will wholly depend on the particular circumstances of each case. If a person has specific concerns regarding suspected failure by an institution/person concerned in the management of such an institution, to comply with section 129(2) of the Consumer Credit Act 1995, a complaint may be made to the Central Bank and the Central Bank will consider it.
The Central Bank has as one of its statutory objectives "the proper and effective regulation of financial service providers and markets, while ensuring that the best interests of consumers of financial services are protected" and accordingly seeks at all times to ensure that the best interests of consumers of financial services are protected when implementing its statutory mandate.
125. Deputy Thomas Pringle asked the Minister for Finance further to Parliamentary Question No. 30 of 7 May 2015 if he has requested the valuation report of the residential mortgage portfolio of Irish Bank Resolution Corporation from the special liquidators; and if he will make a statement on the matter. [19470/15]
Amharc ar fhreagraAs explained to the Deputy in Parliamentary Question No. 30 of 7 May 2015, in order to protect the confidentiality of customer data, the integrity of the sales processes and the liquidation more generally, the Department of Finance and NAMA were not made aware of nor did they receive the independent valuations of the loan assets at either a portfolio or a loan level, nor have they been made aware of the sales prices achieved for any individual mortgage sold as part of the liquidation. Therefore, in order to maintain the integrity of the liquidation, a request to the Special Liquidators for the valuation report on the residential mortgage portfolio of IBRC has not been made by either me or my officials.
Publicly available information regarding the loan sales processes are detailed in the progress update report of 12 March 2015, which is available on the Department of Finance website at http://www.finance.gov.ie/sites/default/files/DOF_IBRC_Progress%20update%20report%20to%2031%20Dec%2014.pdf.
126. Deputy Thomas Pringle asked the Minister for Finance if he is aware of customers whose mortgages were sold to Mars Capital No. 3 Ireland Limited as part of Project Pearl by the former Irish Nationwide Building Society and who are being told to send correspondence to a post office box and are therefore unable to send registered post to the company; if this is acceptable practice by a financial organisation under financial regulations; and if he will make a statement on the matter. [19471/15]
Amharc ar fhreagraAt present, the particular referenced firm is not regulated by the Central Bank. Unregulated entities that have acquired mortgage loan books are not subject to regulation by the Central Bank and are therefore not subject to the provisions of its Codes, such as the CCMA - though many such firms have stated that they will voluntarily comply with the CCMA.
However, borrowers whose loans are sold to unregulated entities will be protected by the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 when it is enacted. The purpose of the Bill is to ensure that consumers retain the protections they had prior to the sale of their loan. This Bill will require entities dealing with the consumer to be authorised by the Central Bank and subject to its Codes of Conduct. Dealing with the consumer is credit servicing and the definition of credit servicing is broad. Owners of loan books who deal directly with consumers, that is, who are servicing their own loan books, will be regulated. Otherwise they can have the loan book serviced by a regulated credit servicing firm.
The Bill was published in January and second stage of the Bill was taken in the Dáil on 4 February. Since then, my officials have been in contact with the Central Bank and with the Office of the Attorney General to further progress the legislation. The Bill will continue its progress through the legislative process and I look forward to further discussion of the Bill at Committee Stage which has been set for 27 May.
With regard to contacting such firms, correspondence may be sent by registered post to a PO Box, although it will not be signed for. However, there will be a record that the post was delivered to the P.O. Box. If the customer is experiencing difficulty contacting the firm by post, it may be of benefit to contact the firm by phone and discuss the particular circumstances with them.
127. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 293 of 21 April 2015 if he will arrange for the Med 2 form to be amended to reflect the fact that the cost of attending a relevant practitioner as distinct from the cost of the procedures carried out qualifies for tax relief; and if he will make a statement on the matter. [19472/15]
Amharc ar fhreagraI am informed by the Revenue Commissioners that the Med 2 form contains details of the range of dental treatments that qualify for tax relief under section 469 of the Taxes Consolidation Act 1997. I am further informed that the Revenue Commissioners are currently reviewing this form to ensure that it accurately reflects the full range of expenses that may be claimed in relation to non-routine dental interventions.
128. Deputy Michael McGrath asked the Minister for Finance his plans to introduce a scheme to the effect that, following the completion of a comprehensive and agreed flood alleviation scheme to the required international standard, insurers may be obliged in law to reinstate flood insurance cover to homes and businesses within the same area; his views that the State should share in the risk for a defined period, immediately following the completion of such works; if he has studied different models of risk-sharing abroad; and if he will make a statement on the matter. [19474/15]
Amharc ar fhreagraI am very conscious of the difficulties experienced by householders and businesses that cannot get flood insurance.
The issue of provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting. I, as Minister for Finance, am not in a position to direct insurance companies to provide flood cover to specific individuals.
The current Government approach to address the availability of flood insurance is to address the underlying problem through appropriate remedial works. This involves:
(a) prioritising spending on flood relief measures by the OPW and relevant local authorities to address those areas of greatest need including areas where the insurance industry is finding it most difficult to provide cover - so that flood relief programmes can have maximum impact, where economically feasible,
(b) improving channels of communication between OPW and the insurance industry with the objective of ensuring that appropriate and relevant information on completed OPW flood defence schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding.
This coordinated whole-of-Government approach is led by OPW, under the aegis of the Department of Public Expenditure and Reform, with further involvement from the relevant local authorities and other bodies in order to maximise the level of resources available to address flood relief works. Because of cost and scale of these types of flood defence works, it is an approach which will see benefits over the medium and long term.
A Memorandum of Understanding (MoU) between Insurance Ireland and the OPW on the sharing of information in relation to completed flood defence works came into effect in on 1st June 2014 and the first full renewal cycle following the MoU has not yet been completed. In January 2015, Insurance Ireland provided a report to OPW on progress so far. While this report showed some improvements, it is expected that a fuller and more detailed report on progress under the MoU will be made available to OPW after June 2015. I will assess the progress reported to OPW in June and will consider whether the current approach is delivering the expected results and whether other approaches need to be considered.
Broadly speaking, insurance and compensation systems for flood risk in Europe have been divided into three categories: (i) traditional private insurance systems; (ii) pooling systems in which the government has a considerable role, and (iii) compensation systems fully administered by the government. Direct comparison with other jurisdictions is difficult as circumstances and legislative frameworks differ widely. My officials will continue to keep developments in other countries under review, including, in particular the establishment of the Flood Re Scheme in the United Kingdom, which is soon to be up and running.
In cases where individuals are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly it is open to them to contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at info@insuranceireland.eu.
129. Deputy Joe Costello asked the Minister for Finance the process for determining the areas covered by the Living City initiative; if consideration will be given to expanding the areas covered to include Broadstone and Royal Canal Bank in Dublin 7, Infirmary Road and Montpelier in Dublin 7, both sides of Aughrim Street in Dublin 7, New Wapping Street and Castleforbes in Dublin 1 and Seville Place in Dublin 1; and if he will make a statement on the matter. [19484/15]
Amharc ar fhreagraThe Special Regeneration Areas for the Living City Initiative were designated by the Minister for Finance following consultation with the relevant city councils and an independent review by a third party adviser. Specific criteria were set down in respect of the areas which should be included within the remit of the Living City Initiative which were required to be taken into account by the relevant city council in putting forward the proposed Special Regeneration Area for each city.
In particular, it was stated that the Special Regeneration Areas should be inner city areas which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use. It was specified that areas which are generally regarded as affluent, which have high occupancy rates and which do not require regeneration should not be included in the Special Regeneration Areas. The Living City Initiative is a very targeted urban regeneration incentive. The criteria to be met for the inclusion of an area in the scheme are more stringent than simply being in one of the relevant cities, and being constructed pre 1915.
It is important to note that I do not see this as a wide-spread Initiative, as it is targeted at those areas which are most in need of attention. However, it is a newly launched scheme, and it will be kept under review.
130. Deputy Patrick O'Donovan asked the Minister for Finance the reason a person (details supplied) in County Wexford is liable for pay as you earn and pay-related social insurance on his income from a community employment scheme; and if he will make a statement on the matter. [19491/15]
Amharc ar fhreagraIncome from Community Employment Schemes is regarded as income for tax purposes and is therefore chargeable to PAYE income tax and PRSI. The appropriate Tax Credit of €3,300 has been granted to the person concerned.
Participants in Community Employment Schemes are exempt from the Universal Social Charge (USC). It appears however that USC has been deducted from the income of the person concerned. Revenue will contact the employer in this instance and advise the employer to refund any USC deductions incorrectly taken from the person concerned.
131. Deputy Pearse Doherty asked the Minister for Finance the consultation he or the Central Bank of Ireland have engaged in with the Irish League of Credit Unions regarding the proposal for a multi-debt initiative to be facilitated by StepChange. [19559/15]
Amharc ar fhreagraThe Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
My role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
I understand that talks are ongoing between StepChange Debt Charity and the banks regarding the potential of operating a service to help people struggling with the burden of debt to find a solution to their problems.
I have been informed by the Central Bank that in 2013 it operated a pilot scheme to develop a process to facilitate a voluntary agreement outlining a co-ordinated approach among lenders to the resolution of multiple debts owed by distressed borrowers. The aim of the pilot framework was to achieve sustainable and fair outcomes without the need for borrowers to enter the full insolvency process. The pilot scheme focused on enhancing co-operation between lenders of secured and unsecured debt in order to resolve distressed debt at an early stage and included StepChange Debt Charity. All credit unions were invited to take part in the pilot scheme. The Irish League of Credit Unions (ILCU), the Credit Union Development Association (CUDA) and the Credit Union Managers Association (CUMA) attended meetings with the Central Bank in relation to the pilot scheme. However, while both CUDA and CUMA participated in the pilot scheme, ILCU did not participate in it.
132. Deputy Dominic Hannigan asked the Minister for Finance if it is the policy of the State Claims Agency to appeal every decision of the High Court which is awarded against the State; and if he will make a statement on the matter. [19568/15]
Amharc ar fhreagraIt is not the policy of the State Claims Agency (SCA) to appeal every decision of the High Court which is awarded against the State. The SCA, together with its lawyers, carefully considers the facts of any individual case, having regard to its particular liability and causation issues, prior to deciding on the merits of an Appeal, if any, to the Court of Appeal or Supreme Court.
It is a relatively rare event for the SCA to appeal decisions of the High Court to the Court of Appeal, or the Supreme Court. To put the matter in context, the SCA, in the 13 years since its inception, has taken two cases on Appeal from the High Court to the Supreme Court. These cases were non-HSE cases and were appealed successfully by the State Claims Agency.
133. Deputy Dominic Hannigan asked the Minister for Finance the amount spent by his Department in legal fees in 2012, 2013, and 2014 in appealing decisions taken by the High Court; and if he will make a statement on the matter. [19569/15]
Amharc ar fhreagraAs a register of the legal fees spent by the Department of Finance specifically in appealing decisions delivered by the High Court is not maintained, it has not been possible in the time available to collate all the information requested. However, the requested information will be collated and forwarded to the Deputy in writing.
134. Deputy Dominic Hannigan asked the Minister for Finance the success rate of the State Claims Agency in appeals on behalf of the Health Service Executive of cases which have been lost in the High Court; and if he will make a statement on the matter. [19570/15]
Amharc ar fhreagraThere are four cases currently under appeal to the Court of Appeal / Supreme Court, which have been taken by the State Claims Agency on behalf of the Health Service Executive. All of these cases are ongoing, and, as such, are yet to be determined by the Court of Appeal / Supreme Court.
135. Deputy Brian Walsh asked the Minister for Finance if he will provide details of a lump sum payment recently made for local property tax in respect of a person (details supplied) in County Galway; the years for which this amount applied; and the amount relating to each of those years. [19593/15]
Amharc ar fhreagraI am advised by Revenue that the €750 payment received in this case was allocated in the order of €200 to arrears of 2012 HHC, €112 to LPT 2013 (half year), €225 to LPT 2014 and the remaining balance of €213 to LPT 2015. The 2015 year still has an outstanding balance of €12 as there were insufficient funds left from the payment to fully meet the liability (€225) for the current year.
136. Deputy John McGuinness asked the Minister for Finance the hourly rates being paid to the Irish Bank Resolution Corporation liquidator and to the staff of same; the number of staff involved and their pay grades; the estimated cost of the liquidation; and the discounts sought or received by him. [19596/15]
Amharc ar fhreagraSlide 61 of the Special Liquidators' Progress Update Report dated 12 March 2015, which is available on the Department of Finance website at http://www.finance.gov.ie/sites/default/files/DO F_IBRC_Progress%20update%20report%20to%2031%20Dec%2014.pdf, details the costs of the liquidation for the period 7 February 2013 to 31 December 2014.
KPMG rates are based on NAMA negotiated rates for the relevant services. These rates were put in place following a competitive tender conducted by NAMA.
The rates agreed with the Special Liquidators for this assignment are as follows:
|
Grade |
Rate Per Hour (excluding VAT) |
|
Partner |
€295 |
|
Director |
€260 |
|
Associate Director |
€220 |
|
Manager |
€190 |
|
Supervisor |
€165 |
|
Senior Accountant |
€165 |
|
Semi-senior accountant |
€165 |
|
Junior accountant |
€95 |
The number of staff working on the assignment has fluctuated over the course of assignment given various activity volumes as the loan sales progressed. The headcount requirement peaked at 330 staff from KPMG.
Total fees of €76 million were paid to KPMG (KPMG Special Liquidator team: €71.4 million and KPMG migration team: €4.6 million) to 31 December 2014 of which approximately €4.5 million was recovered from NAMA. In addition a rebate of €5 million was agreed with KPMG following discussions at the request of the Minister.
137. Deputy Seán Kenny asked the Minister for Finance if the Revenue Commissioners are requesting those with personal public service numbers similar to their spouse's but ending with the additional letter 'W' to have new personal public service numbers issued to them by the Department of Social Protection; if so, the reason this is necessary; and if he will make a statement on the matter. [19642/15]
Amharc ar fhreagraI am advised that the Revenue Commissioners are, in certain limited circumstances, requesting those with PPS numbers similar to their spouses but ending with the additional letter W (i.e. 'W numbers') to have new PPS numbers issued to them by the Department of Social Protection (DSP).
The circumstances when a customer is asked by Revenue to get a new PPSN include, when they commence employment, when there is a separation or when the 'main' PPSN is no longer in use as happens on the death of their spouse.
The vast majority of people nowadays are using their own number. The process of replacing a PPSN is relatively straightforward. The service is provided by the Client Identity Section (CIS) in the Department of Social Protection (DSP) and they can be contacted by telephone at 1890 927999. DSP subsequently informs Revenue of the change.
I am advised by Revenue that as part of the changeover process, CIS verifies the identity of the individual, secures their consent, removes the existing 'W number' and replaces it with either a new number or one that the individual may have had prior to marriage. In addition, all pre-existing records relating to that individual are transferred over to the new PPSN. Once completed, a letter advising of the new PPSN is issued to the individual at their home address.
