Thursday, 18 Jun 2015

Written Answers Nos. 86-96

Economic Growth

Ceisteanna (87)

Lucinda Creighton

Ceist:

87. Deputy Lucinda Creighton asked the Minister for Finance his views on the precise actions being carried out to underpin a return to sustainable medium-term economic growth. [24383/15]

Freagraí scríofa

Minister for Finance

In April this year, the Government published its Spring Economic Statement which sets out its strategy for the remainder of this decade to build on the economic recovery currently underway. Through a continuation of prudent, medium-term focussed budgetary and economic policies, sustainable increases in jobs and in living standards for all will be achieved.  The policies to achieve this objective include:

A growth-friendly tax system: The Government's tax policy is focussed on putting the tax base on a more stable and sustainable footing.  We are rebalancing the tax system in a growth friendly manner by maintaining a broad base, rigorously evaluating new and existing tax expenditures, relying to a greater extent on taxes that are less harmful to growth, and gradually lowering the tax burden on labour. The commencement of a multi-year programme of income tax reform which began in Budget 2015 is part of this process. 

Financing for growth: The Government is working to ensure adequate credit supply for Small and Medium Sized Enterprises through inter alia state-sponsored vehicles such as the Ireland Strategic Investment Fund and the Strategic Banking Corporation of Ireland.  We are continuing to explore ways of improving credit supply, including through non-bank sources.  The Government is actively engaged in work at European level on the Capital Markets Union and the European Fund for Strategic Investments.

Labour market policies: The Action Plan for Jobs is a whole-of-Government process that has played a key role in creating employment and reducing unemployment.  The Plan's target of 100,000 additional jobs by 2016 will be met this year.  Unemployment has fallen by 5 percentage points since its peak.  The Government is continuing to work to reduce it further through the Action Plan for Jobs and the Pathways to Work strategy.

Recouping the cost of the bank bail-out: The investment in the banks by Irish taxpayers has been unprecedented, totalling €64 billion.  Over the past few years, major steps have been taken to reduce the overall cost of this recapitalisation including the liquidation of the IBRC, the disposal of some of our banking investments and the receipt of interest and fees. In relation to our remaining banking assets, the Government's strategy is to identify suitable opportunities for disposal which will maximise the return for the taxpayer.

Reducing the drag from public debt: Policy efforts by the Government have reduced the deficit and put debt on a sustainable path.  These efforts have reaped considerable benefits through the reductions in the debt burden.  The Government is complying with European fiscal rules which are designed to ensure that sensible levels of debt and deficit are achieved, and that increased public expenditure can be financed.  

Targeted sector-specific interventions: Re-building the economy sector-by-sector has been a key feature of the Government's economic policy.  In some areas, such as tourism and agrifood, the approach has been about building on comparative advantage and exploiting new market opportunities. In other sectors, particularly construction, the focus has been on repairing the sector. The Government has developed a number of sectoral strategies with the aim to continue this successful approach, including in Tourism, Financial Services, Construction and Agrifood.

These, and other policies, are set out in detail in the Spring Economic Statement.  Sustained implementation of these policies is key to achieving steady, stable growth in employment and output over the medium term, to deliver a more prosperous future for all.

Vehicle Registration Data

Ceisteanna (88)

Róisín Shortall

Ceist:

88. Deputy Róisín Shortall asked the Minister for Finance the number of reserved vehicle registration numbers in each of the past five years; the revenue this has yielded to the State in each of these years; and the anticipated yield to the Exchequer, if current fees were increased by 5%, 10% or 20%, respectively. [24398/15]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that the number of reserved vehicle registration numbers and the yield from reservations in each of the past five years are as set out in the following table.

Year	Reserved Vehicle Registration Numbers	Yield
2010	177	€177,000
2011	157	€157,000
2012	70	€70,000
2013	111	€111,000
2014	153	€153,000

Assuming a level of assigned registration numbers similar to 2014 the following table sets out the position if fees were increased by 5%, 10% or 20%.

Revenue Yield in 2014	Yield with a 5% increase	Yield with a 10% increase	Yield with a 20% increase
€153,000	€160,650	€168,300	€183,600

NAMA Debtors

Ceisteanna (89, 90, 91, 92, 93)

Michael McGrath

Ceist:

89. Deputy Michael McGrath asked the Minister for Finance the number of National Asset Management Agency debtors to declare themselves bankrupt in 2013, in 2014, in 2015 to date, and in prior years; and if he will make a statement on the matter. [24400/15]

Michael McGrath

Ceist:

90. Deputy Michael McGrath asked the Minister for Finance the amount owed to the National Asset Management Agency debtors who have declared themselves bankrupt; the efforts made by the agency to recover moneys from those debtors; the amount of moneys recovered to date; and if he will make a statement on the matter. [24401/15]

Michael McGrath

Ceist:

91. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the number of National Asset Management Agency debtors who have declared themselves bankrupt; the year in which they declared themselves bankrupt; the country in which they declared themselves bankrupt; the number of debts discharged from bankruptcy to date; and if he will make a statement on the matter. [24402/15]

Michael McGrath

Ceist:

92. Deputy Michael McGrath asked the Minister for Finance if he will provide the annual amounts spent in legal costs by the National Asset Management Agency in bankruptcy related cases here, in the United States of America, in the United Kingdom, and in other countries; the amount paid out to named legal firms and barristers, over €20,000, in pursuing those cases; and if he will make a statement on the matter. [24403/15]

Michael McGrath

Ceist:

93. Deputy Michael McGrath asked the Minister for Finance his views on the success of the National Asset Management Agency, or otherwise, in recovering moneys from those who have declared themselves bankrupt; and if he will make a statement on the matter. [24404/15]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 89 to 93, inclusive, together.

It is important to point out to the Deputy that debtors are entitled to petition to bankrupt themselves in accordance with the laws of the relevant jurisdiction. The decision to grant bankruptcy is therefore a matter for the relevant jurisdiction.  This is not something that NAMA can control.  

I am advised that as a secured lender, NAMA's experience has been that bankruptcy has not prejudiced recoveries on secured assets. As a secured lender, NAMA is legally entitled to enforce over and to realise the assets securing its loans. This is not affected by debtor bankruptcy. Furthermore, NAMA advises me that in practically all bankruptcy cases involving its debtors, it had enforced over or had realised the secured assets securing its loans prior to the debtor's filing for bankruptcy.

Bankruptcy proceedings therefore relate, generally, to the unsecured liabilities of the bankrupt.  The role of the bankruptcy official (usually a trustee) is to oversee the estate of the bankrupt and to gather in and realise the bankrupt's assets including property and cash, identify creditors, and ultimately make a distribution to creditors, including NAMA, in accordance with priority. The bankruptcy official can also seek orders in respect of post-bankruptcy earnings through, for example, an income payment order or other attachment. The bankruptcy official may also have grounds to seek reversals of asset transfers for the benefit of the bankrupt's estate under the rules of the relevant jurisdiction.

NAMA does not write off its unsecured debt as a result of a debtor being adjudicated a bankrupt.  As advised, it is a matter for the bankruptcy proceedings in the relevant jurisdiction to deal with the bankrupt's debts and, even after the bankrupt has been discharged, the bankruptcy estate continues to be administered by the bankruptcy official until such time as all assets have been liquidated and the debt, in so far as possible, has been repaid. Reflecting this, I am advised by NAMA that the winding up of bankrupt estates in the vast majority of cases involving its debtors is ongoing.  NAMA's financial statements for 2014, which are available on NAMA's website, www.nama.ie, take account of the financial position of its whole loan book including debtors that have been declared bankrupt. As with all debtor connections, NAMA conducts regular impairment reviews of connections whose principals have been declared bankrupt and, for the reasons set out, bankruptcy does not in itself cause the impairment position to deteriorate. 

NAMA advises that in each instance of bankruptcy involving a NAMA debtor it reviews its legal options and selects the most appropriate method of ensuring the best possible return for Irish taxpayers.  This includes challenging the discharge from bankruptcy in instances where there has been material non-disclosure by the bankrupt. It has also included in a small number of cases challenging bankruptcy applications for various reasons but often on the basis of Centre of Main Interests (COMI).

I am advised by NAMA that it does not generally incur costs in situations where debtors petition to bankrupt themselves, aside from the small number of cases where NAMA has challenged such bankruptcy petition where the circumstances have so prescribed. In the few cases where NAMA has initiated actions against debtors, and which ultimately result in bankruptcy, legal costs relate to the entirety of NAMA's actions to recover debts owing to it, often across a number of legal jurisdictions, and it is not feasible to segregate the costs which specifically pertain to the application for bankruptcy.  Furthermore, given the small number of cases involved, to isolate legal costs in this way could have the effect of identifying specific cases.  This would not be appropriate, particularly given that some of these legal cases are ongoing and could be subject to further legal action.  For the Deputy's information, a breakdown of legal and other professional fees incurred by NAMA in the conduct of its business for each year of its operation was provided in response to Dáil Question No. 111 on 19th May 2015. 

I am advised by NAMA that as at end-May 2015 a total of 92 debtors had been declared bankrupt: 20 in Ireland, 70 in the UK, which includes Northern Ireland debtors, and 2 in the US.  Those 92 individuals had a cumulative debt exposure as part of wider debtor connections to approximately €11 billion in par debt.

A breakdown of debtor bankruptcy by year and jurisdiction is set out below:

Table 1: NAMA debtor bankruptcy by year and jurisdiction

Country	2009	2010	2011	2012	2013	2014	2015	Total
Ireland	3	2	3	3	1	5	3	20
UK	1	1	13	29	15	10	1	70
U.S.A.	-	-	-	-	2	-	-	2

As also set out below, 54 debtors have to date been discharged from bankruptcy.

Table 2: NAMA debtor bankruptcy discharges by year

Year	2009	2010	2011	2012	2013	2014	2015	Total
Total	-	-	1	12	25	13	3	54

Mortgage Interest Rates

Ceisteanna (94)

Brendan Griffin

Ceist:

94. Deputy Brendan Griffin asked the Minister for Finance his views on correspondence (details supplied) regarding the treatment of a customer of a financial institution; and if he will make a statement on the matter. [24438/15]

Freagraí scríofa

Minister for Finance

I met with senior management of Ireland's six main mortgage lenders on 19th and 21st May to discuss the issue of mortgage interest rates. The meetings focused on the mortgage market and specifically the comparatively high standard variable rates currently being charged by the banks.

I outlined my view, that Standard Variable Rates being charged in the Irish market are too high.  There was agreement from all lenders that customers should have access to more competitive mortgage products as per my recommendation.

The banks agreed to review their rates and products and, by the beginning of July, to have simple options to reduce monthly mortgage payments for SVR customers. Some of the potential products include lower standard variable rates for existing and new customers, competitive fixed rate products and lower variable rates taking account of loan to value for new and existing customers.

In addition to the issue of rates I also outlined the need for greater competition in the market and the need for a more active and well-resourced campaign by the individual banks. This should focus on promoting awareness of their best offering and how easy it is for customers to take up new products and switch between different institutions if they wish to avail of better rates.

In relation to switching, I understand that the Competition and Consumer Protection Commission is planning to provide more information to consumers to encourage switching. Although I did not meet the financial institution to which the Deputy refers, I would hope that increased competition will impact on all institutions. I expect that if financial institutions are convinced that there is a threat that they will lose these customers, they will reduce the rates that they currently charge existing customers. The CCPC website www.consumerhelp.ie is a valuable source of information on the rates charged by various financial institutions.

The financial institution to whom the Deputy refers is regulated by the Central Bank and the borrower may complain to the Financial Services Ombudsman if he is unable to resolve the complaint to his satisfaction with the institution. The Financial Services Ombudsman was set up to adjudicate on unresolved disputes between complainants and financial service providers in an independent and impartial manner.

Ferry Services Provision

Ceisteanna (95)

Michael Healy-Rae

Ceist:

95. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform when he will issue the additional permit for ferrying passengers to Sceilig Mhichíl in County Kerry in County Kerry; and if he will make a statement on the matter. [24329/15]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works is aware that there is some capacity currently within the permitted boat operators at Skellig Michael and it is, in response, preparing a competition process to issue new Boat Permits.

There are a number of legal issues to be resolved before any competition can be held and these are being considered currently. If the relevant legal matters can be satisfactorily addressed, the competition will be advertised publicly and any party who wishes can apply to be considered.

State Properties

Ceisteanna (96)

Michael McGrath

Ceist:

96. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will provide, in tabular form, the annual income received by the State from mobile phone operators, for masts located on State-owned property, in each year from 2008 to 2014; and if he will make a statement on the matter. [24303/15]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The following table shows the income received by the State under licences granted to mobile phone operators for masts located on State owned property from 2008 to 2014.

Year	Income
2008	€4,406,476
2009	€2,716,921
2010	€4,597,417
2011	€3,549,348
2012	€3,566,991
2013	€5,417,132
2014	€4,422,756