Written Answers Nos. 241-260
241. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which family homes have been repossessed by venture capital investors in each of the past three years to date; and if he will make a statement on the matter. [41552/16]
Amharc ar fhreagraThe Central Bank publishes statistics on residential mortgage arrears and repossessions on a quarterly basis. This publication provides details of arrears in banks and non bank entities. However the data is not published in the format requested by the Deputy. The latest release is available here: http://www.centralbank.ie/polstats/stats/mortgagearrears/Documents/2016q3_ie_mortgage_arrears_statistics.pdf
I would also refer the Deputy to the Central Bank's Report on Mortgage Arrears, published on 16 December at http://www.finance.gov.ie/sites/default/files/Mortgage%20Arrears%20Report%20-%20FINAL.pdf. In this report the Central Bank concludes that there is a broad range of available restructures offered and delivered by banks and non-bank entities. Furthermore, the Central Bank notes that there is strong evidence that banks and non-banks are looking to exhaust available options before moving into the legal process. Section 4.3 of this report comments on legal proceedings and notes that non-bank entities accounted for 17% of the total stock of repossessed PDH properties in possession as of end-June 2016, with banks accounting for the remaining 83%. The proportion of legal proceedings that result in an order for possession is higher among the non-bank entities. The Central Bank notes that this possibly reflects the higher volume of accounts in deep distress among these entities.
The Deputy will be aware that the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was introduced to fill the consumer protection gap where loans were sold by the original lender to an unregulated entity. The 2015 Act introduced a regulatory regime for a new type of entity called a 'credit servicing firm'. Credit Servicing Firms are now subject to the provisions of Irish financial services law that apply to 'regulated financial service providers'. This ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including under the various statutory codes, such as the Consumer Protection Code and the Code of Conduct on Mortgage Arrears. The Act means that any purchasers of loans books are required either to become regulated themselves by the Central Bank or use a regulated credit servicing firm to service their loans.
Finally, it is clear from the most recent Central Bank data on mortgage restructures that where a borrower actively engages with their lender under the CCMA with a view to agreeing a sustainable arrangement to address their mortgage arrears, it is more likely that an equitable arrangement will be found and that the borrower will be able to remain in their family home. The new Abhaile mortgage resolution service, which can be accessed through the Money Advice & Budgeting Service (MABS) helpline, can provide access to independent financial and legal advice at no cost to individual borrowers.
242. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department continue to monitor the potential effects of Brexit; and if he will make a statement on the matter. [41553/16]
Amharc ar fhreagra247. Deputy Bernard J. Durkan asked the Minister for Finance the steps his Department can take to counter the likely negative impact of Brexit on this country; and if he will make a statement on the matter. [41558/16]
Amharc ar fhreagra310. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which remedial steps can be taken to address the impact of Brexit on the economy as envisaged in the recent report by his Department in conjunction with the ESRI and the Department of the Taoiseach. [34564/16]
Amharc ar fhreagra341. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department expect to be in a position to counter any negative economic impact arising from Brexit; and if he will make a statement on the matter. [1963/17]
Amharc ar fhreagraI propose to take Questions Nos. 242, 247, 310 and 341 together.
The Department of Finance has been assessing and preparing for the impact of Brexit since well before the referendum on 23 June 2016. Work was carried out in the Department to assess the potential economic and financial sector implications arising, including through the ESRI-Department of Finance research programme study published in November 2015 titled 'Scoping the Possible Economic Implications of Brexit on Ireland'. This work was undertaken within the whole-of-Government framework established by the Department of the Taoiseach.
Following the result of the UK referendum and to prepare for the forthcoming negotiations, work has been intensified across the whole of Government level including in my own Department. A new Brexit Unit within the EU and International Division was established in July 2016 to oversee and coordinate this work and to act as a key liaison point with the Department of the Taoiseach, in particular. In addition, the Department of Finance staff complement in the Irish Permanent Representation to the EU in Brussels has been strengthened.
As part of Budget 2017, the Department of Finance published the Economic and Fiscal outlook which presented a full macroeconomic projection including updated estimates of economic growth, the public finances and the fiscal space, taking account inter alia of the impact of Brexit. In addition, the Department published detailed analysis of sectoral exposure to Brexit across the economy. More recently, the Department has worked with the ESRI to deepen the macroeconomic analysis and a report titled 'Modelling the Medium to Long Term Potential Macroeconomic Impact of Brexit on Ireland' was published in November 2016.
Budget 2017 included a number of measures to respond to the challenges of Brexit, to mitigate future risks, and to support any opportunities that might arise. These include measures to support SMEs, entrepreneurship, agri-food and Irish exporters. These measures are an important first step in mitigating the impacts on the Irish economy from the economic implications of Brexit. More information on these measures is available in the Budget documentation.
The best and most immediate policy under the Government's control to counter the likely negative economic impacts of Brexit is to prudently manage the public finances in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds. In this context, Budget 2017 signalled a lower debt target of 45 per cent of GDP for the mid-to-late 2020s. This will help to provide an additional fiscal 'shock absorber' capacity to the public finances to help withstand any shock including the impact of Brexit. This will complement the contingency or 'rainy day' fund to be established following the achievement of a balanced budget in 2018 which will help provide a further counter-cyclical buffer.
The work being done by the Department, including the work of Minister of State Murphy T.D. who has responsibility for Financial Services, will be an important input to ensuring that Ireland will be in a position to counter any negative economic impact arising from Brexit and to ensure that Ireland's interests are protected in the upcoming negotiations at EU level. The Department will continue to monitor the economic impacts, to carry out relevant analysis and to frame budgetary policy advice in this new context.
243. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which this economy remains competitive; and if he will make a statement on the matter. [41554/16]
Amharc ar fhreagra348. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied regarding the continued competitiveness of the economy; and if he will make a statement on the matter. [1970/17]
Amharc ar fhreagraI propose to take Questions Nos. 243 and 348 together.
Significant progress has been made in recent years in improving Ireland's competitiveness. The latest figures from the Central Bank of Ireland show that Ireland's real harmonised competitiveness indicator (a widely used measure of competitiveness in Europe) has improved by over 20 per cent between 2008 and November 2016.
The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth. In this regard, we must be cognisant that favourable exchange rate movements can reverse, as can be seen for example in the strengthening of the euro against sterling last year. Similarly, gains from the fall in oil prices may unwind in the future. Indeed, the drag on consumer prices from low oil prices is already beginning to ease.
In addition, excessive rent and house price growth are also a potential threat to competitiveness. In this regard, the Government has implemented a number of initiatives aimed at tackling supply constraints which should ease price pressures.
Sustainable fiscal policies, to which the Government is committed, are also a key driver of competitiveness.
Finally, it is also important that, at firm level, pay moves in line with productivity developments.
In summary, I am highly conscious of the need to maintain competitiveness-oriented policies in order to help address emerging uncertainties.
244. Deputy Bernard J. Durkan asked the Minister for Finance the action he can take to discourage family home repossessions where the borrowers have made and continue to make reasonable efforts to meet their repayments; and if he will make a statement on the matter. [41555/16]
Amharc ar fhreagraThe Deputy will be aware from previous PQ responses that the Government attaches great importance to the resolution of mortgage arrears and wants to keep families in their homes and avoid repossessions insofar as possible. He will also be aware of the recent establishment of the Abhaile mortgage arrears resolution service to ensure that those either in mortgage arrears or at risk of going into mortgage arrears on their primary residence are able to access State-funded professional legal or financial advice on their resolution options.
The Deputy will also know that the Code of Conduct on Mortgage Arrears (CCMA) sets out statutory requirements for mortgage lenders and credit servicing firms dealing with borrowers in or facing arrears on the mortgage loan secured by their primary residence.
Lenders may only commence legal proceedings for repossession of the borrower's primary residence after it follows a number of steps. The steps include:
- Making every reasonable effort under the CCMA to agree an alternative restructure arrangement (ARA) with the borrower;
- time bound requirements to inform the borrower the regulated entity is not willing to offer an ARSA and of his/her options;
- time bound requirements to inform a borrower, who is not willing to enter into an ARA, of his/her options; and
- a decision to classify the borrower as non-cooperating.
I am informed by the Central Bank that there is a broad range of available restructures offered and delivered by both bank and non-bank entities and there is strong evidence that both banks and non-banks look to exhaust available restructure options before moving to the legal process.
In conclusion I would draw the Deputy's attention to Mortgage Arrears and Restructures Data released by the Central Bank on 12 December, which shows that to end-Q3 2016, the number of mortgage accounts in arrears for principal dwelling houses (PDH) has declined for the last thirteen quarters. Some 121,140 PDH accounts were also classified as restructured, of which some 88 per cent were reported to be meeting the terms of their arrangement. It is clear that where a borrower actively engages with their lender it is more likely that an equitable arrangement will be found and that the borrower will be able to remain in their family home.
245. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that all the economic indicators remain constant; and if he will make a statement on the matter. [41556/16]
Amharc ar fhreagra343. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that all economic indicators remain stable and consistent with requirements for the future notwithstanding any changes in the international political situation; and if he will make a statement on the matter. [1965/17]
Amharc ar fhreagraI propose to take Questions Nos. 245 and 343 together.
Notwithstanding the significant political developments in the past few months, recent economic indicators have generally been positive, indicating that the recovery is continuing in a sustainable manner.
GDP grew by 6.9 per cent in the third quarter of this year on an annual basis. This follows annual growth of 3.1 per cent in the second quarter.
While the strong growth in the third quarter was driven by net exports, overall the recovery is now being increasingly driven by domestic demand with strong contributions from both consumption and investment spending. Indeed, personal consumption is up 3.2 per cent in the first three quarters of this year on an annual basis.
The economic recovery is most clearly evident in the labour market. Employment grew by 2.9 per cent (+57,500) over the year to Q3 2016, the sixteenth successive quarter of employment growth. The increase in employment remains broad based with gains recorded in 12 of the 14 sectors reported by the CSO.
Recent data published indicate that:
- The volume of retail sales increased by 4.3 per cent year-on-year in November 2016. Core sales (excluding motor trades) were up by 4.9 per cent over the same period.
- New cars licensed for the first time were up 17.8 per cent in 2016 compared to 2015.
- Expansion in the construction sector continued in November with the Purchasing Managers' Index for the sector recording its thirty-ninth successive month of expansion.
- The Consumer Sentiment Index was 96.2 in December, well above its long run average.
- The seasonally-adjusted monthly unemployment rate for December was 7.2 per cent, down from 8.9 per cent in December 2015. As a result, the unemployment rate has fallen by more than half since its peak of over 15 per cent in early-2012.
However, there are several sources of uncertainty at present including the UK's decision to exit the EU. The sharp depreciation of sterling is the most significant short-term impact arising from Brexit. While the euro-sterling exchange rate has moderated from the post referendum peak of €1 = £0.90, it remains particularly volatile increasing to almost €1 = £0.87 in recent trading, representing a 13 per cent appreciation since the UK vote. This poses significant challenges, particularly for parts of the exporting sector and areas sensitive to cross-border trade.
In addition, there is uncertainty surrounding the change in administration in Washington, including the extent to which US economic policy will shift towards protectionism.
These sources of uncertainty highlight the importance of prudent management of the public finances and of competitiveness-oriented policies that would help the Irish economy to weather any global economic downturn that may emerge.
In summary, I am satisfied that the economic indicators remain stable although the full impact of Brexit is yet to be seen. I am also conscious that the level of uncertainty regarding international developments is very high. In this regard, it is critical that appropriate polices are implemented in Ireland and that is what the Government is doing and will continue to do.
246. Deputy Bernard J. Durkan asked the Minister for Finance the way in which the economy continues to compare favourably with other EU currencies; and if he will make a statement on the matter. [41557/16]
Amharc ar fhreagraAccording to the European Commission's most recent forecasts (November 2016) Ireland was among the three fastest growing economies in the EU in 2016. The Commission estimates that real GDP growth in Ireland was 4.1 per cent in 2016 compared with real GDP growth in the EU economy and euro area economy of 1.8 per cent and 1.7 per cent, respectively. Domestic demand is driving growth once again with strong contributions from both consumption and investment spending, while underlying exports are holding up despite the sharp depreciation of sterling throughout 2016. Service exports in particular remain strong with double-digit growth recorded in the third quarter of 2016 year on year.
According to the European Commission, Ireland is also expected to be among the fastest growing economies in Europe this year. The European Commission expects Ireland's economy to grow by 3.6 per cent in 2017 compared with growth of 1.6 per cent for the EU and 1.5 per cent for the euro area.
The Government's priority is to ensure continued, sustainable economic growth in order to further increase living standards and reduce unemployment.
248. Deputy Bernard J. Durkan asked the Minister for Finance if he expects mortgage interest rates here to align with the rates applicable in other EU states; and if he will make a statement on the matter. [41559/16]
Amharc ar fhreagra349. Deputy Bernard J. Durkan asked the Minister for Finance when home loan borrowers here might be able to avail of interest rates comparable throughout the European Union; and if he will make a statement on the matter. [1971/17]
Amharc ar fhreagraI propose to take Questions Nos. 248 and 349 together.
While Ireland is in a monetary union with other Euro area Member States, it has to be acknowledged that there are many factors, such as differences in national legal and housing systems, cultural preferences, language, the proximity of lenders to borrowers, which will continue to inhibit the full integration of the residential mortgage market and of mortgage interest rates in the Euro area and the wider EU. More directly, differences in the nature of mortgage and other credit markets, credit and market conditions, mortgage default rates and the funding of mortgage credit will also impact on the levels of mortgage lending rates between and within different countries. However, there have been some developments which seek to promote a more harmonised market for credit across the EU. In particular, the 2014 Mortgage Credit Directive, which has now been transposed into Irish law by the European Union (Consumer Mortgage Credit Agreements) Regulations 2016, seeks to develop a more harmonised, efficient and competitive internal market for the provision of residential mortgages to consumer borrowers and this should help to promote the closer integration of EU mortgage markets over time.
At a national level, however, the Government accepts that further action is required to drive down mortgage interest rates in Ireland and the Programme for a Partnership Government has set out a number of practical measures which seeks to improve the position of mortgage borrowers and variable rate mortgage holders in particular. For example, it has asked the Competition and Consumer Protection Commission to work with the Central Bank to set out options for Government in terms of market structure, legislation and regulation to lower the cost of secured mortgage lending and to improve the degree of competition and consumer protection. Also the Government considers that measures to encourage and promote a greater level of switching in the mortgage market would help boost the level of competition in the market for existing mortgages. In particular, the Programme for Government considers that the development of a code of conduct for switching mortgage provider would be a useful and practical initiative which would have the potential to deliver savings to many existing mortgage holders. As the Deputy will be aware, research carried out by the Central Bank last year indicated that a significant number of borrowers could make savings by switching mortgages. Therefore, in order to promote the option of switching mortgages, I have also asked the Central Bank to consider and formulate a code in this area and in response the Central Bank has indicated that it has commenced a programme of research on this topic to inform its consideration of this matter.
More immediately, it should be noted that the Central Bank is introducing some further protections for variable rate mortgage holders. The enhanced measures, which are provided for in an Addendum to the Consumer Protection Code 2012, and effective from 1 February, will require lenders to explain to borrowers how their variable interest rates have been set, including in the event of an increase. The measures will also improve the level of information to be provided to borrowers about other mortgage products their lender provides that could provide savings for the borrower and signpost borrowers to the CCPC's mortgage switching tool.
It is important also to take account of the diversity of the residential mortgage market which comprises, inter alia, fixed interest rate, loan to value managed variable rate mortgages, trackers, restructured mortgages of various types, etc. Therefore, the residential mortgage market cannot be assessed by only looking at standard variable rate mortgages, and any assessment would need to consider the large number of different factors that influence interest rate pricing.
Overall, the Government is of the opinion that real competition among lenders is the best way to ensure that retail mortgage lending rates are further reduced in a sustainable way for the market as a whole but without giving rise to potentially undesirable consequences for new mortgage lending. This is a policy area that the Government will keep under active review in its ongoing engagement with mortgage lenders and in implementing the Programme for Government.
249. Deputy Pearse Doherty asked the Minister for Finance the number of applications to date for the help-to-buy scheme as announced in budget 2017; and if he will make a statement on the matter. [41612/16]
Amharc ar fhreagra250. Deputy Pearse Doherty asked the Minister for Finance the number of applications for the help-to-buy ##scheme that have been deemed valid to date; and if he will make a statement on the matter. [41613/16]
Amharc ar fhreagra251. Deputy Pearse Doherty asked the Minister for Finance the number of successful or pending applications for the help-to-buy scheme in each category (details supplied), in tabular form. [41614/16]
Amharc ar fhreagraI propose to take Questions Nos. 249 to 251, inclusive, together.
As the Deputy will be aware, the Help to Buy (HTB) application system was launched on time on the first working day of the New Year, following the announcement of the measure in Budget 2017. I am advised by the Revenue Commissioners that the mortgage query tool, which is an integral part of the system for mortgage providers, went live last week.
I am also advised that the number of Help To Buy applications received up to Friday 13 January 2017 was:
|
No. of Applications |
Successful applications |
*Pending |
|
1,255 |
132 |
1,123 |
*Pending means that the applicants either have to file an outstanding return or address a compliance issue, the application is to be reviewed by a Revenue caseworker or the applicant needs to finalise his or her application.
With regard to the Deputy's request for the breakdown of applications by different loan-to-value ratios, the Revenue Commissioners advise this is not available. Information about the loan-to-value ratios is available from the finalised claim submitted by successful applicants and it is not available at the application stage. To date, a small number of claims have been paid and that number is not a sufficiently large sample to enable Revenue to provide the categorisation sought.
The Revenue Commissioners are encouraging prospective applicants to file any necessary returns and resolve any outstanding issues before they make their HTB application. I am aware that HTB applicants can also use Revenue's website to carry out other requests, for example to file a Form 12 or apply for tax clearance. PAYE taxpayers can use myAccount and the bulk of the applications so far have been submitted via myAccount. Business taxpayers can use ROS Revenue's Online Service.
The Revenue Commissioners have seen a very healthy level of interest in the HTB scheme, which is indicated by the level of applications already received and by the activity on their website since the scheme was announced last October. I am further advised that the level of interest in the Scheme has been consistently increasing since the start of the year.
Another element of the Scheme is that first time purchasers of property after 1 January this year are required to ensure that they purchase from a 'qualified contractor'. The Revenue Commissioners have already approved 5 contractors, and up to Friday 13 January 2017 there were 37 applications for registration as 'qualified contractors'. Given the number of queries from contractors, Revenue anticipates that the number of approved contractors will increase significantly over the next few weeks.
252. Deputy Pearse Doherty asked the Minister for Finance the total anticipated cost of the help-to-buy scheme based on the applications to date; and if he will make a statement on the matter. [41615/16]
Amharc ar fhreagraThe Help to Buy scheme opened for applications on January 3rd 2017, and has had 1,255 applications to date.
It is too early to anticipate an estimate of the actual cost of the scheme based on such a small amount of data, which includes retrospective applications. However, at Budget time, it was estimated that the incentive would cost approximately €40 million per annum, €50 million in 2017, as a result of claims being made in respect of qualifying purchases and self builds completed in the latter end of 2016, as well as claims in respect of 2017.
253. Deputy Lisa Chambers asked the Minister for Finance his views on supporting proposals to exclude defence spending from the calculation of excess deficit rules. [41619/16]
Amharc ar fhreagraThe fiscal rules, which apply under the Stability and Growth Pact (SGP), are intended to promote budgetary discipline and help ensure the sustainability of the public finances. These rules were also given domestic legal effect through the Fiscal Responsibility Act 2012 following the passage of a constitutional referendum in May 2012 in which the Irish people supported accession to the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union.
The rules are designed to ensure that increases in public expenditure are sustainably financed and do not rely on cyclical or windfall revenues. The deteriorating international outlook illustrates the need for caution and prudent economic and fiscal policies.
These rules do not per se limit public spending. They do, however, require that any additional spending is financed through sustainable revenue raising measures. This is not unreasonable.
For this reason I would not support efforts to exclude areas of permanent recurring expenditure such as defence spending from the assessment of compliance with the SGP, as such an approach could undermine fiscal sustainability in the relevant Member States. Having said that, it is important to note that there is existing flexibility within the fiscal rules that is designed to promote public investment in vital capital infrastructure, and I am supportive of greater flexibility in this area.
254. Deputy Brendan Ryan asked the Minister for Finance his views on increased car insurance premiums for vehicles over ten years old; his views on whether there should be no extra premium for a car based on its age as long as the vehicle passes its NCT; his plans to address this unfairness; and if he will make a statement on the matter. [41653/16]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I cannot require companies to price insurance for older cars in a particular way.
In making their individual decisions on whether to offer cover and what terms to apply, motor insurers use a combination of rating factors. The age of the car can be one of these factors, in addition to the age of the driver, the type of car, the claims record, driving experience, the number of drivers, how the car is used, etc. Insurers do not all use the same combination of rating factors and as a result prices vary across the market and consumers are free to choose accordingly. In addition, insurers price in accordance with their own past claims experience; for example, where the age of a car is a factor, different insurance companies would use different age thresholds.
Policy in relation to the NCT lies with the Minister for Transport, Tourism and Sport. The NCT was introduced to comply with an EU Roadworthiness Testing Directive aimed at improving road safety and environmental protection. The NCT is an inspection or general "health check" of what is visible and accessible on the day of the test and includes a check of the roadworthiness of such safety features, amongst others, as lighting, brakes and tyres. It goes beyond the current Directive's requirements in many areas and the Department of Transport, Tourism and Sport is of the view that the Irish system is one of the best roadworthiness testing regimes in the EU. While the NCT is one component of having safer vehicles on our roads, every vehicle owner has a personal and legal responsibility to ensure that their vehicles are roadworthy and well maintained.
255. Deputy John Brady asked the Minister for Finance the number of vacant NAMA-owned ##properties here, by county, in tabular form; and if he will make a statement on the matter. [41666/16]
Amharc ar fhreagraThe Deputy will appreciate that NAMA does not own or manage properties. NAMA has acquired loans. The properties securing those loans continue to be managed by their legal owners or, in the case of enforcement, by duly appointed insolvency practitioners. Insolvency practitioners such as receivers and administrators act as agents of the original owners of the properties, not as agents of NAMA.
I am advised that NAMA, in its capacity as secured lender, currently has exposure to 173 residential properties which are temporarily vacant. I am further advised, by NAMA, that these properties are currently on the market for sale, with many already sale agreed, or are between tenancies. Therefore, those 173 properties represent frictional vacancy and NAMA debtors and receivers expect these to be occupied quickly.
The fact that there are so few vacant properties in the NAMA portfolio reflects NAMA's stated policy of ensuring that houses and apartments are made available to potential purchasers or tenants in a timely fashion.
The Deputy will be aware that NAMA is making a very substantial contribution to new housing supply in the main urban centres, particularly Dublin, through its residential development funding programme which is aimed at facilitating, on a commercial basis, the construction of 20,000 new houses and apartments by 2020.
The breakdown sought by the Deputy is set out in the following table.
Temporarily vacant NAMA-related residential property, by County
|
Category |
Total |
|
Co. Louth |
3 |
|
Co. Limerick |
1 |
|
Co. Wicklow |
0 |
|
Co. Laois |
0 |
|
Co. Monaghan |
1 |
|
Co. Sligo |
0 |
|
Co. Leitrim |
0 |
|
Co. Cavan |
0 |
|
Co. Dublin |
73 |
|
Co. Longford |
4 |
|
Co. Kilkenny |
0 |
|
Co. Carlow |
0 |
|
Co. Offaly |
0 |
|
Co. Kildare |
16 |
|
Co. Roscommon |
0 |
|
Co. Waterford |
6 |
|
Co. Westmeath |
6 |
|
Co. Wexford |
4 |
|
Co. Mayo |
3 |
|
Co. Kerry |
1 |
|
Co. Donegal |
0 |
|
Co. Galway |
9 |
|
Co. Clare |
21 |
|
Co. Cork |
25 |
|
Co. Meath |
0 |
|
Co. Tipperary |
0 |
|
Total (s) |
173 |
256. Deputy Sean Fleming asked the Minister for Finance the date from which alleged breaches of prudential requirements by significant institutions under the direct supervision of the European Central Bank pursuant to the Single Supervisory Mechanism are dealt with; the way in which allegations relating to events prior to that date are dealt with; and if he will make a statement on the matter. [41694/16]
Amharc ar fhreagraFrom 4 November 2014, the European Central Bank (ECB) has had responsibility for the direct prudential supervision of significant credit institutions (Significant Institutions) within participating member states whose currency is the euro.
The ECB is competent to take direct sanctioning proceedings against Significant Institutions, under the framework set down by the Single Supervisory Mechanism Framework Regulation (EU) No 468/2014 (SSMFR) and Single Supervisory Mechanism Council Regulation (EU) No 1024/2013 (SSMR), in respect of breaches of directly applicable EU law (including relevant breaches committed prior to 4 November 2014).
The ECB may also instruct the Central Bank to open proceedings against Significant Institutions, pursuant to Article 18(5) of the SSMR (including relevant breaches committed prior to 4 November 2014). Where a change in competence between the ECB and the Central Bank is to take place (e.g. where a Less Significant Institution is reclassified as a Significant Institution) Article 48 of the SSMFR provides for the manner in which pending procedures (including the imposition of administrative pecuniary penalties) are to be dealt with.
The Central Bank retains responsibility for the supervision activities defined in the SSMR as non-core (e.g. anti-money laundering, consumer protection).
Where enforcement and sanctions proceedings relating to Significant Institutions were being conducted by the Central Bank prior to 4 November 2014, the Central Bank retains responsibility for such proceedings.
257. Deputy Willie O'Dea asked the Minister for Finance his plans to change the terms of the tax concession for disabled drivers and disabled passengers scheme 1994, in respect of a person (details supplied); when he plans to do so; and if he will make a statement on the matter. [41749/16]
Amharc ar fhreagraThe scheme and qualifying criteria were designed specifically for those with severe physical disabilities. I frequently receive correspondence from applicants who do not meet the qualifying criteria but feel that they would benefit from the scheme. While I am sympathetic to those who do not qualify for the Scheme, I cannot, given the scope of the Scheme, expand it further within the current context of constrained resources.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the repayment of excise on fuel used by members of the Scheme, the Scheme represented a cost of €50.3 million to the Exchequer in 2015, an increase from €48.6 million in 2014. These figures do not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I recognise that the Scheme plays an important role in expanding the mobility of citizens with disabilities, and as a consequence the relief has been maintained at current levels throughout the crisis, despite the requirement for significant fiscal consolidation. Accordingly, while I am sympathetic to those who do not qualify for the Scheme, there are no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers Regulations 1994.
258. Deputy Jack Chambers asked the Minister for Finance the changes, if any, to be made to capital acquisitions tax in respect of children; and if he will make a statement on the matter. [41804/16]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance.
For the purposes of CAT, the relationship between the person who provides the gift or inheritance (i.e. the disponer) and the person who receives the gift or inheritance (i.e. the beneficiary), determines the life-time tax-free threshold known as the "Group threshold" below which gift or inheritance tax does not arise. Where a person receives gifts or inheritances in excess of their relevant tax free threshold, CAT at a rate of 33% applies on the excess over the tax free threshold.
There are, in all, three separate Group thresholds based on the relationship of the beneficiary to the disponer. Each of these was increased in the most recent budget, Budget 2017.
Group A: tax free threshold €310,000 (formerly €280,000) applies where the beneficiary is a child (including adopted child, stepchild and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child.
Group B: tax free threshold €32,500 (formerly €30,150) applies where the beneficiary is a brother, sister, a nephew, a niece or lineal ancestor or lineal descendant of the disponer.
Group C: tax free threshold €16,250 (formerly €15,075) applies in all other cases.
In 2015 the Group A CAT threshold, applying to transfers from parents to their children, was €225,000. I raised it to €280,000 in Budget 2016 and further increased it to €310,000 in Budget 2017. This represents an increase of about 38% in two years. Options for future changes to CAT will be considered in the context of the upcoming budget processes.
259. Deputy Seán Haughey asked the Minister for Finance his views on recent disclosures to the effect that banks denied mortgage customers their contractual right to a tracker interest rate; the role of the Central Bank in this regard; the action he will take in relation to this issue; and if he will make a statement on the matter. [41878/16]
Amharc ar fhreagraAs the Deputy is aware, the Central Bank has commenced an industry wide examination of tracker mortgage related issues (the "Examination") covering among other things transparency of communications with and contractual rights of tracker mortgage customers. The Examination is a key priority for the Central Bank and it continues to challenge lenders to ensure that progress is being made and fair outcomes are being achieved for customers.
The Examination is currently on-going and while lenders are currently in the process of carrying out their internal reviews it is important to note that some lenders may have their internal reviews completed sooner than others depending on the size of their mortgage books and the complexities associated with them completing the Examination.
As groups of impacted customers are identified, in the first instance, the lender must stop charging the incorrect rate of interest on the customer's account, and then communicate this to the customer, to ensure that any further customer detriment is stopped as early as possible.
Once a full review of the customer's account is complete, following external independent third party assurance, the lender will then issue a letter to the customer explaining the nature of the error, the correct rate to apply to the customer's account and information on the next steps in the Examination, including the redress and compensation process.
The Examination framework also provides that lenders establish an independent appeals process to deal with customers who are dissatisfied with any aspect of the redress package that they receive from lender in respect of these matters.
The Central Bank continues to monitor lenders' progress in respect of the conduct of the Examination through direct engagement with each lender and its appointed external independent party and through on-site reviews and review of regular progress reporting. Where necessary the Central Bank will take appropriate supervisory action, including enforcement action, to ensure that fair outcomes are achieved for consumers, as demonstrated in the outcome of a recent settlement agreement with Springboard Mortgages Limited where the Central Bank issued a reprimand and imposed a fine of €4.5million.
The Central Bank provided an update on the progress on the Examination at the end of December and a copy can be found at the following link: http://www.centralbank.ie/press-area/press-releases/Pages/UpdateTrackerMortgages.aspx.
260. Deputy Dara Calleary asked the Minister for Finance if he will outline all funding announcements made by him or by his Department for projects in County Mayo since January 2015, in tabular form; the details of each project; the status of the project at 31 December 2016; the amount of funding drawn down at 31 December 2016; and the reason for the delay in the project or funding draw-down. [1059/17]
Amharc ar fhreagraThere was no provision in the Vote for my Department for funding for projects for the years in question.
