Written Answers Nos. 43-54
43. Deputy Michael McGrath asked the Minister for Finance if he will consider an amendment to the legislation governing credit unions that would specifically allow them lend to approved housing bodies and local authorities for social and affordable housing; and if he will make a statement on the matter. [27552/16]
Amharc ar fhreagraThe agreed Programme for a Partnership Government recognises the potential role that credit unions can play in housing finance and supports the efforts of the Registrar of Credit Unions at the Central Bank to gradually lift current lending restrictions as appropriate, including for housing. The Programme further provides that it will investigate with all stakeholders how credit unions can support the delivery of social housing.
The Department of the Environment, Community and Local Government is the Department primarily responsible for the formulation and implementation of policy and preparation of legislation in relation to housing
The Registrar of Credit Unions at the Central Bank is the independent regulator of credit unions. Officials from my Department and from the Department of the Environment have jointly met with the Central Bank to provide information of a technical nature regarding social housing funding arrangements and to consider the potential regulatory and legislative implications of credit union involvement in social housing funding. Regular updates on progress are received by my Department. from the Department of the Environment.
However, the lending framework for credit unions is provided for under section 35(2) of the Credit Union Act 1997 which stipulates that a credit union can only lend to its members. Section 17 of the 1997 Act stipulates that all members of a credit union must hold the common bond set out in the rules of the credit union. Section 6 of the 1997 Act sets out the objects of the credit union, one of those objects being the creation of sources of credit for the mutual benefit of its members at a fair and reasonable rate of interest.
On 29 June 216, the Credit Union Advisory Committee (CUAC) presented me with a Review of Implementation of the Recommendations in the Commission on Credit Unions Report. This Review makes many recommendations, one of which is a full review of lending and concentration limits, including the basis of the calculation of those limits together with the associated liquidity limits. Detailed consideration and a policy paper will also be developed on the Common Bond. It is intended that an Implementation Group is established shortly to ensure implementation of all recommendations in CUAC's Review.
44. Deputy Michael McGrath asked the Minister for Finance the status of the flood insurance models considered by his Department; the preferred option and timeframe for its implementation; and if he will make a statement on the matter. [27551/16]
Amharc ar fhreagraThe provision of insurance cover is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance.
To achieve this aim the Office of Public Works (OPW) is carrying out assessments of 300 areas under the Catchment Flood Risk Assessment and Management (CFRAM) programme and each area is on target to have a Flood Risk Management Plan (FRMP) by the end of 2016. Decisions on future investment in relation to flood risk management will be informed by the FRMPs.
This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland which provides for the exchange of data in relation to completed flood defence schemes.
An Inter-Departmental Flood Policy Co-ordination Group has been established to examine the issue of flooding, and to ensure a whole of Government approach in the area of Flood Policy. This Group is chaired by me with special responsibility for the OPW and Flood Relief. The OPW are the lead agency and have responsibility for co-ordinating and submitting the final report of the group to Government.
As an input to the Inter-Departmental Group's work the Department of Finance has carried out a review of flood insurance with a particular focus on the strategies that other jurisdictions have implemented to increase the availability of flood insurance cover. This work examined a number of policy options and has made certain recommendations. The report has been provided to OPW to feed into the final report of the Inter-Departmental Group. A further meeting of the Interdepartmental Group was held earlier this week to finalise the report which is expected to be brought to Government in the coming weeks.
45. Deputy Robert Troy asked the Minister for Finance the level of engagement he and his officials have had with the Irish League of Credit Unions regarding proposals to utilise its existing reserves on deposit for investment in public infrastructure improvements. [27628/16]
Amharc ar fhreagra72. Deputy Robert Troy asked the Minister for Finance the level of engagement he and his officials have had with the Irish League of Credit Unions regarding proposals to utilise their existing reserves on deposit for investment in public infrastructure improvements. [27799/16]
Amharc ar fhreagraI propose to take Questions Nos. 45 and 72 together.
In the Programme for Partnership Government, we stated that we will investigate with all stakeholders how credit unions can support the delivery of social housing.
My Department has received a number of different proposals from the Irish League of Credit Unions (ILCU) and from the Credit Union Development Association (CUDA). Proposals from both representative bodies, in relation to the funding of social housing, are at various stages of development.
However, the Department of the Environment, Community and Local Government is primarily responsible for the formulation and implementation of policy and for the preparation of legislation in relation to housing. Also, the Registrar of Credit Unions at the Central Bank is responsible for the regulation and supervision of the credit union sector. Earlier this year the Central Bank amended regulations to allow for investments to be made by credit unions in projects of a public nature, to include but not limited to investments in social housing.
The ILCU has submitted a proposal setting out a means by which funding could be provided to Approved Housing Bodies by credit unions, for the development of social housing. CUDA has also submitted a proposal in respect of the funding of social housing. For credit union investment to work in providing additional investment it has to be off-balance sheet . Credit unions cannot simply hand over money to the State to build social housing. This would effectively be Government borrowing by another name and would end up on the State's balance sheet. The credit union bodies themselves will therefore have to put in place the necessary financial structure for investing in the delivery of social housing by the AHBs. Both representative bodies are working on these structures with the Department of Environment providing necessary technical advice and support.
Officials from my Department and officials from the Department of the Environment have met jointly with the Central Bank to provide information and to discuss issues arising from these proposals. The Department of the Environment provides updates on progress and has been in ongoing contact with the credit union representative bodies. I have been informed that the most recent meeting between Department of Environment officials and the ILCU was on 12 July. It was agreed that the representative bodies would progress their proposals, with both Departments indicating their availability should any assistance be required regarding technical advice or further information.
Ultimately, any funding mechanisms will have to be put in place in the first instance by the credit unions themselves, with the support of their members, and these must be sanctioned by the Central Bank.
Both myself and Minister Coveney are happy for our officials to continue to contribute to this process by providing necessary technical advice and support as required.
46. Deputy Imelda Munster asked the Minister for Finance if Ireland will be in full compliance with the fiscal rules for 2016; and if he will make a statement on the matter. [27530/16]
Amharc ar fhreagraThe fiscal rules to which Ireland is subject, including as part of the Stability and Growth Pact (SGP), are designed to ensure stable public finances that underpin sustainable economic growth. The Government's medium term fiscal strategy is to 'balance the books', which is defined in structural terms as a deficit of 0.5 per cent of GDP. This is Ireland's medium term objective or MTO and it should be achieved in 2018.
The European Commission makes a recommendation to each Member State on the appropriate improvement required on an annual basis in the structural balance to reach its MTO. This analysis takes account of the debt-to-GDP ratio, the size and sign of the output gap and whether the economy is growing faster than potential GDP growth. Currently, Ireland is required to improve its structural balance by 0.6 per cent of GDP per annum. My Department's latest forecasts, as published in the Summer Economic Statement, indicate that Ireland will achieve a structural balance improvement of 0.5 percentage points this year. While this preliminary ex ante estimate falls slightly short of the required adjustment, it is not considered a significant deviation under the SGP framework. Furthermore, on the basis of this outlook, Ireland remains on track to achieve its MTO in 2018.
The purpose of the expenditure benchmark is to keep expenditure growth in line with the trend growth rate of the economy after taking account of discretionary revenue measures. It is designed to ensure that the level of spending is sustainable and can continue to be supported by the economy. Thanks in part to Eurostat's decision to classify an AIB banking transaction in 2015 as general government expenditure, my Department's preliminary ex ante estimates suggest Ireland will be compliant with the benchmark in 2016.
Assessment of compliance with the preventive arm of the SGP is undertaken by the European Commission and is based on overall assessment, taking account of both pillars (the expenditure benchmark and the balanced budget rule). As part of the Budget 2017 process, there will be a detailed re-assessment of both pillars in respect of both 2016 and 2017. The final assessment of compliance with the rules in 2016 on an ex post basis will take place once data outturns are confirmed in the context of the European Commission's Spring 2017 forecast.
47. Deputy Brendan Ryan asked the Minister for Finance his views on whether any decision to continue the reduced 9% VAT rate for the hospitality and tourism sector should be contingent on those industries complying with Government policy in respect of collective bargaining and wage-setting mechanisms, such as joint labour committees. [22551/16]
Amharc ar fhreagraThe 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. The tourism sector is a key sector in the Irish Economy and the introduction of the 9% VAT rate was aimed at reducing costs during a very challenging time for the sector. The objective was to boost tourism and create additional jobs. While the VAT rate was due to revert to 13.5% in 2014, I retained the 9% rate on tourism activity in Budget 2014 because the initiative had proved to be a major success. Between the second quarter of 2011 and the first quarter of 2016, on a seasonally adjusted basis, the number of people working in the Accommodation & Food Services Sector nationally increased by 31,000, taking total employment from 114,900 to 145,900. This increase of 27% compares to an increase of 7.2% in overall employment over the same period indicating that the measure may have been successful in terms of job creation and has made a significant impact on the competitiveness of the tourism product.
The Government, in the Programme for Partnership Government, has committed to increasing revenue from overseas visitors, growing employment in the tourism sector and increasing the number of visits to Ireland, through the retention of the 9% VAT rate on tourism related services, among other measures, providing that prices remain competitive. With reports of rising prices within the tourism sector, particularly in Dublin, it is incumbent on the industry to ensure that this relief continues to be passed through fully to the consumer. My Department will continue to monitor developments in this regard.
With regard to employment within the sector, Ireland has a robust suite of employment rights legislation to protect all workers, including minimum wage legislation. These rights apply across all sectors. Other wage setting frameworks include joint labour committees, registered employment agreements and sectoral employment orders which are underpinned by recent legislation. Engagement in these frameworks is voluntary on the part of the stakeholders concerned.
48. Deputy Mattie McGrath asked the Minister for Finance the efforts he is making to counter cross-Border smuggling of illegal goods; the estimated financial cost of this illicit trade in 2015; and if he will make a statement on the matter. [19085/16]
Amharc ar fhreagraI am advised by Revenue, who are responsible for combatting smuggling, that action against this criminal activity is, and will continue to be, a central element of their work.
I am advised that estimating the scale of any illegal activity and the tax loss to which it gives rise is necessarily difficult and that it is not possible, therefore, to attribute a value to the overall losses associated with smuggling.
Revenue has introduced wide ranging initiatives to tackle fuel fraud over the last number of years. Revenue and Her Majesty's Revenue and Customs undertook a joint initiative to find a more effective fiscal marker for use in marked fuels which was implemented in Ireland and the United Kingdom from the beginning of April 2015.
Revenue is also tackling the illicit trade in tobacco and cigarettes. Various operations undertaken by the Revenue have yielded significant success in seizures. Revenue has seized just under 40 million cigarettes in 2016 so far.
Revenue has recently conducted a review of the Alcohol Product Tax regulatory framework in relation to alcohol fraud. Revenue in conjunction with HMRC developed Operation Shard which resulted in six significant seizures in the United Kingdom and the closure of a French tax warehouse.
Revenue continues to meet its obligations under the National Drugs Strategy. Revenue has primary responsibility for the prevention, detection, interception and seizure of controlled drugs intended to be smuggled or illegally imported into /exported from the State.
Revenue maintains an excellent working relationship with An Garda Síochána, HM Revenue and Customs, National Crime Agency and U.K. Border Agency/Force with a view to countering the activity of those involved in importing drugs. Revenue's Customs service were involved in a number of joint operations with An Garda Síochána Drugs & Organised Crime Bureau which involve criminal activity with a cross border element.
Revenue along with An Garda Síochána and the Health Products Regulatory Authority (HPRA) who have primary responsibility for enforcing regulations in respect of medicines, run regular operations countering the activities against those involved in the importation of illicit products.
For my part, I have, over recent years, taken action through the Finance Acts to ensure that Revenue has all the powers necessary to combat these forms of criminal activity.
49. Deputy Richard Boyd Barrett asked the Minister for Finance if he has fully quantified the lost revenue to the Exchequer as a result of the exploitation by special purpose vehicles, SPVs, of the section 110 corporate tax loophole and other tax loopholes between 2007 and 2015; his plans to close all these loopholes; and if he will make a statement on the matter. [27594/16]
Amharc ar fhreagraI have recently published a proposed amendment to section 110 TCA 1997 which I intend to introduce in the Finance Bill. I am informed by Revenue that it is not yet possible to accurately cost the measure. This proposal was published on 6 September 2016, in draft form, in order to obtain constructive feedback and views from interested bodies.
It should be noted that the tax returns and financial statements for 2015 are due to be filed from the end of next month, after which Revenue will have the opportunity to examine the activities for 2015 in full. Until a larger number of accounts covering a number of years are fully examined it will be difficult to estimate the likely impact of the proposed amendment. It is Revenue's intention to conduct a thorough investigation of companies availing of section 110 who have acquired Irish distressed debt.
The matters being reviewed concern complex transactions and the appropriate accounting treatment for such transactions. Where a company acquires a loan book there will be three possible sources of profits which are: the interest payments that are made by the borrowers; the capital repayments made by the borrowers that exceed the capital cost of the loan book to the lender; and any gain arising on the disposal of a loan or any property on which a loan is secured.
In addition, to accurately estimate the full impact of the measure would require ex ante knowledge of any behavioural changes on the part of taxpayers as a consequence of the amendment. Revenue would not therefore be in a position to anticipate the extent and impact of any such behavioural changes or corresponding impact on the tax yield. The proposed amendment is in draft form and not yet finalised which also leads to difficulties predicting any potential yield.
51. Deputy Joan Burton asked the Minister for Finance the discussions he had with the European Commission and Heads of Government with reference to the ruling concerning a company (details supplied). [27228/16]
Amharc ar fhreagraOn 30 August 2016, it was announced that the Commission had concluded their single investigation in Ireland and had issued a negative decision in the Apple State Aid case.
The investigation was a priority matter for the State. Over the course of the three year investigation, detailed and comprehensive responses were provided to the Commission demonstrating that the appropriate amount of Irish tax was charged in accordance with the relevant legislation, that no selective advantage was given and that there was no State Aid. This engagement included meetings both at political and official level, including a meeting between myself and Commissioner Vestager in July 2016.
The Government remains of the view that there was no breach of State Aid rules in this case and that the legislative provisions were correctly applied. By appealing the Decision the Government is taking the necessary course of action to vigorously defend the Irish position.
Member States have legal standing to intervene in all cases that go before the European courts and do so from time-to-time if it is considered that the case raises points of relevance for their country.
It is the view of the Government that our appeal is necessary to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign Member State competence of taxation.
At the informal ECOFIN meeting in Bratislava earlier this month, I updated fellow Finance Ministers on the case from an Irish perspective.
If other Member States found that the issues we are raising are of relevance for their tax system, I would welcome their support for the Irish appeal.
52. Deputy Joan Burton asked the Tánaiste and Minister for Justice and Equality if her attention has been drawn to the fact that the Garda intelligence headquarters, Harcourt Street, Dublin 2, was recently sold to a REIT that wishes to redevelop the complex; if suitable accommodation has been secured for the staff; the length of time it will take to relocate these offices; and if she will make a statement on the matter. [27851/16]
Amharc ar fhreagra55. Deputy Joan Burton asked the Tánaiste and Minister for Justice and Equality the number of staff accommodated in the Garda intelligence headquarters, Harcourt Street, Dublin 2; her plans to accommodate its offices in future in view of the recent sale of the building to an REIT that wishes to redevelop the Garda intelligence headquarters; if new suitable accommodation has been secured for the staff; the length of time it will take to relocate these offices; and if she will make a statement on the matter. [27850/16]
Amharc ar fhreagraI propose to take Questions Nos. 52 and 55 together.
The Deputy will be aware that the programme of replacement of Garda accommodation around the country is progressed by the Garda authorities working in close co-operation with the Office of Public Works, which has primary responsibility for the provision of Garda accommodation and I, as Minster, have no direct role in these matters.
I am advised by the Garda authorities that there are some 1,000 members of staff located in the Harcourt Square complex. I am further advised that matters relating to the leases of the complex are at present before the Courts and, in the circumstances, it would not be appropriate for me to comment further on the matter.
53. Deputy Donnchadh Ó Laoghaire asked the Tánaiste and Minister for Justice and Equality her views on the current status of the McMahon report on direct provision; the number of recommendations that have been implemented; her plans to implement the remainder of the recommendations; the further actions she will take towards the ending of or reform of the direct provision system; and if she will make a statement on the matter. [27804/16]
Amharc ar fhreagraI refer the Deputy to my response to Parliamentary Question No. 114 of 27 September 2016 which details the progress to date on the implementation of the recommendations of the McMahon report on Improvements to the Protection Process, including Direct Provision and Supports to Asylum Seekers.
The Programme for a Partnership Government contains a commitment to reform the Direct Provision system, with particular focus on families and children and to this end the recommendations of the Working Group are being implemented.
54. Deputy Alan Farrell asked the Tánaiste and Minister for Justice and Equality the number of European arrest warrant requests received from other European Union member states and made by Ireland on a annual basis since its introduction; and if she will make a statement on the matter. [27848/16]
Amharc ar fhreagraThe information sought by the Deputy is set out in the table.
|
Year |
No. of warrants received by Ireland |
No. of warrants issued by Ireland |
|
2004 |
28 |
18 |
|
2005 |
67 |
29 |
|
2006 |
127 |
43 |
|
2007 |
173 |
35 |
|
2008 |
198 |
40 |
|
2009 |
326 |
33 |
|
2010 |
374 |
51 |
|
2011 |
384 |
71 |
|
2012 |
313 |
88 |
|
2013 |
224 |
70 |
|
2014 |
183 |
79 |
Section 6(6) of the European Arrest Warrant Act 2003 provides that the Central authority for the EAW shall prepare an annual report to the Oireachtas on the operation of the Act in the preceding year. In this regard, I expect that the annual report in respect of 2015 will be laid before the Oireachtas shortly.
