Written Answers Nos. 55 - 64
55. Deputy John Brady asked the Minister for Finance the number of vacant NAMA commercial buildings in the State with a county breakdown as well as the length of time each building has been vacant; and if he will make a statement on the matter. [3559/17]
Amharc ar fhreagraI am advised by NAMA that its debtors and receivers control 14 commercial office properties which are currently vacant. The properties concerned are either on the market for sale or are in the planning system with a view to increasing their ultimate disposal value. I am advised that two of the 14 office properties have been vacant for less than three months, five have been vacant for a period of between three and twelve months and the other seven have been vacant for longer than twelve months.
The Deputy will be aware that commercial properties, by their nature, are subject to voids on a regular basis. For instance, one or more floors of an office building may be vacant for a period between tenancies. Likewise, units in shopping centres are subject to frictional vacancy as certain businesses cease and others replace them. In addition, some buildings become obsolete and can no longer be occupied due to safety reasons. The day-to-day management of the commercial properties concerned is a matter for debtors and receivers. However, as the Deputy will be aware, it is NAMA's policy to ensure all vacant properties that are fit for purpose and meet the required safety standards are occupied and income-producing, and in many instances this involves NAMA providing funding to complete partially finished properties to ensure they are available to potential purchasers or tenants as soon as practicable.
The breakdown sought by the Deputy is set out in the following table.
Temporarily vacant NAMA-related commercial office property, by County
|
County |
Total |
|
Cork |
1 |
|
Dublin |
8 |
|
Galway |
3 |
|
Waterford |
1 |
|
Wexford |
1 |
|
Total |
14 |
56. Deputy John Brady asked the Minister for Finance the number of undeveloped land portfolios owned by NAMA in the State, by county; the length of time the land has been held by NAMA; and if he will make a statement on the matter. [3560/17]
Amharc ar fhreagraAs indicated in my reply to Parliamentary Question 90 of 19 January 2017, apart from properties acquired by NARPS, NAMA holds 11 other properties on its balance sheet. I am advised that the majority of these were taken onto NAMA's balance sheet arising from legal and insolvency agreements. Nine of these assets are land and development assets, of which two are located abroad. The remaining seven land and development assets are located in Dublin. Six are located in the Docklands SDZ area and current asset management activity is geared towards enhancing their ultimate disposal value. The other land and development asset is also located in Dublin and is the subject of litigation. These assets were taken onto NAMA's balance sheet in the period since 2012.
57. Deputy John Brady asked the Minister for Finance if he will provide a breakdown of the length of time NAMA residential properties have been vacant; and if he will make a statement on the matter. [3561/17]
Amharc ar fhreagraAs indicated in my reply to Parliamentary Question 255 of 17 January 2017, NAMA debtors and receivers currently have exposure to 173 residential properties which are temporarily vacant. The majority of these properties are currently on the market for sale, with many already sale agreed, or are being prepared for sale, are undergoing remediation works, or are between tenancies.
I am advised, by NAMA, that 37 of the properties have been vacant for less than six months, that another 54 properties have been vacant for a period between six and fifteen months and that 82 properties have been vacant for more than fifteen months. The Deputy will be aware that it is NAMA's policy to ensure that all vacant properties that are fit for purpose and meet the required safety standards are occupied and income-producing and, in many instances, this involves NAMA providing funding to complete partially-finished properties to ensure they are made available to potential purchasers or tenants as soon as practicable.
58. Deputy Sean Fleming asked the Minister for Finance further to Parliamentary Question No. 256 of 17 January 2017 (details supplied), the person or body that deals with new allegations against these institutions made after 4 November 2014, whereby enforcement and sanctions proceedings were not being conducted prior to 4 November 2014 but the new allegations relate to events prior to 4 November 2014; the person or body responsible for examining these alleged breaches; and if he will make a statement on the matter. [3596/17]
Amharc ar fhreagraAs I have previously stated, the European Central Bank (ECB) has 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).
59. Deputy David Cullinane asked the Minister for Finance the number of cases of bogus employment contracts the Revenue Commissioners have investigated in each of the years 2008 to 2016, in tabular form; and if he will make a statement on the matter. [3605/17]
Amharc ar fhreagraI am informed by Revenue that it carries out a range of tax and duty compliance interventions including interventions to ensure the correct operation by employers of the PAYE system.
When carrying out compliance interventions, Revenue is mindful of the possibility of the incorrect classification of a person as self-employed in any engagement between two parties and the non-operation of the PAYE system arising from that. This is particularly the case during Revenue interventions in certain sectors where the practice of engaging people to work on contract is prevalent, like the construction sector or in professional services like engineering and IT.
However, in addition to employers erroneously treating employees as self-employed contractors, non-operation of the PAYE system can arise in a number of other scenarios. For example, it arises in "off the books" arrangements wherein employers pay wages or part of wages in cash without PAYE deductions and it arises where employers erroneously treat wages as tax free expenses. Where non-operation of the PAYE system is uncovered, Revenue will seek to recover from employers the unpaid PAYE tax, interest on late payment of that tax and will, as appropriate, pursue penalties. However, non-operation of the PAYE system may be only part of the evasion uncovered in a compliance intervention as, in some instances, a business may also have undeclared its business profits or not operated VAT correctly. It is not unusual to find that a tax settlement with Revenue may, for example, cover outstanding liabilities in respect of corporation tax, VAT and PAYE tax.
I am further informed by Revenue that while they capture the various constituents of yield tax or duty, interest on late payment and penalties their records do not capture each of the separate or specific types of contraventions of law uncovered. On that basis, the information sought by the Deputy is not available.
The Deputy should also be aware that work is ongoing between officials from my Department, the Department of Social Protection and Revenue following a public consultation last year where submissions were sought from interested parties on the "Use of Intermediary-Type Structures and Self-employment Arrangements" and their impact on tax and PRSI. The consultation document is available at http://www.finance.gov.ie/what-we-do/tax-policy/consultations/consultation-use-intermediary-type-structures-and-self.
60. Deputy Catherine Murphy asked the Minister for Finance his views on the European Central Bank relying on the secrecy rules of Article 28, Council Regulation (EU) No 1024/2013, to dismiss a potential criminal investigation into whether a bank (details supplied) has kept proper books of account and the over-valuing of collateral while borrowing funds from the ECB; his further views on whether Article 28 should be used in this manner; and if he will make a statement on the matter. [3634/17]
Amharc ar fhreagraAs the deputy is aware, the SSM has ultimate responsibility for supervision of the banking sector. The SSM is comprised of the ECB and the national competent authorities (NCAs) of participating Member States. The Irish national competent authority is the Central Bank of Ireland. Since the 4th of November 2014, the SSM has been responsible for the prudential supervision of all credit institutions in the participating Member States, which includes Ireland. The Council Regulation article that the deputy refers to gives some details of supervisory activities to be carried out at an ECB level and activities that rest with the national competent authorities.
The SSM has wide-ranging supervisory and enforcement powers in relation to credit institutions. It is solely a matter for the SSM as to how these powers are exercised. If the deputy has information that these powers may have been exercised improperly or suspects a breach of relevant European Union law, these should be reported to the Central Bank of Ireland as the national competent authority. Further information can be found here: http://www.centralbank.ie/regulation/industry-sectors/credit-institutions/Pages/default.aspx.
Such a breach, so long as it does not relate to consumer protection or the implementation of anti-money laundering rules, can also be reported to the European Central Bank. Further information on reporting a breach can be found here: https://www.bankingsupervision.europa.eu/banking/breach/html/index.en.html.
62. Deputy Clare Daly asked the Minister for Finance if his plans for the housing sector are to increase demand in order to increase prices; and if so, the level of house prices he envisages for the Dublin area. [3682/17]
Amharc ar fhreagraAs regards house price developments, national residential property prices reached a trough in 2013, having contracted by 54 per cent. In Dublin house prices began to decline earlier than the rest of the country reaching a trough in 2012. Since then the recovery in the economy, the sustained growth in employment and demographic changes have underpinned the 50 per cent increase in national house prices (66 per cent increase in Dublin). The growth in house prices reflects the as yet insufficient supply response to meet the demand for housing. For example, in the 12 months to November 2016, 14,728 units were constructed and while this represents an 18 per cent increase over the same period in 2015, it remains significantly below estimated demographic demand of 25,000-30,000 units per annum.
As the Deputy is aware, the Government has adopted Rebuilding Ireland, Action Plan for Housing and Homelessness. This Plan constitutes a whole of government approach and aims, through some 84 actionable measures, to address the underlying structural constraints which continue to inhibit new housing supply. The implementation of the Action Plan will lead to the increased provision of social housing, the streamlining of the planning system and the removal of infrastructural constraints. Many of these actions will improve the viability of construction particularly in urban regions.
In recognition of the particular challenges faced by first time buyers in accessing the housing market, I introduced the Help-to-Buy initiative as part of Budget 2017. The initiative complements Rebuilding Ireland by providing immediate, targeted and time bound support to first time buyers as the measures announced in the Action Plan are rolled out but before they start to yield results.
63. Deputy Niall Collins asked the Minister for Finance if he will provide a list of Irish projects which the Government has identified for drawing down funding from the European Commission’s European Fund for Strategic Investments, which fund promotes job creation, long-term growth and competitiveness; and if he will make a statement on the matter. [3728/17]
Amharc ar fhreagra64. Deputy Niall Collins asked the Minister for Finance the number of project applications entered by the State under the European Fund for Strategic Investments, per annum, in tabular form; the number of successful agreements to date; the estimated total expected drawdown of funds; and if he will make a statement on the matter. [3729/17]
Amharc ar fhreagraI propose to take Questions Nos. 63 and 64 together.
The purpose of the European Fund for Strategic Investments (EFSI) is to support both public and private sector investment projects through loan facilities, which must be repaid, and guarantees to facilitate projects which otherwise might not proceed. EFSI's ability to deliver in a particular Member State is dependent on there being suitable public and private projects under its two funding windows - the Infrastructure and Innovation Window (IIW) and the SME Window.
EFSI provides an important additional funding mechanism to support investment in the pursuit of employment and growth. It should be considered alongside the other suite of investment mechanisms including the (European Investment Bank) EIB's normal lending activities. For the private sector there are also the commercially available financing options. In the case of the public sector, the State's capital investment programme is sufficiently funded via the state's borrowings through the NTMA, while other mechanisms such as PPPs and off-balance sheet vehicles are additional potential options for funding investment.
Since inception, Ireland has seen the main potential beneficiaries of EFSI as being in the private sector including entities such as PPP companies and I am pleased that the primary health care centres PPP has successfully drawn down EFSI funds. It should be remembered that each EFSI loan entered into by the State pre-commits funding for the repayment of such loans, and has to be considered in the context of the expenditure benchmark under the EU's fiscal rules.
The European Union's Financial Instruments are important for the implementation of the Government's commitment to supporting the financing needs of SMEs and ensuring that there is an adequate supply of affordable and appropriate credit to meet their needs. Such European Financial Instruments include the COSME and InnovFin Guarantee Programmes, both of which are made available under the EFSI SME Window. In 2016, the Strategic Banking Corporation of Ireland (SBCI) successfully applied for a €100 million guarantee facility under the COSME programme, and will use this facility to support the delivery of the Agri Cash Flow Support Loan Fund for Farmers as announced in Budget 2017, on behalf of Department of Agriculture, Food and the Marine. The SBCI has also submitted an application for the InnovFin counter guarantee to the European Investment Fund (EIF) and, if the application is successful, intends to use that counter guarantee to create a pilot program to offer a guaranteed loan product through partner bank(s).
As indicated, EFSI represents an additional funding option open to Government Departments, Agencies and commercial semi-State companies. As such, it is a matter for each of these entities to consider the potential eligibility of their projects for EFSI funding. Generally, Departments would have existing relationships with the European Investment Bank, which has responsibility for the management and operation of EFSI. Government Departments would, in the process of appraising their funding options for a particular project, engage with the EIB to consider the eligibility of their project for EFSI funding. My officials are currently compiling a list, through the EIB, of projects that have been approved for EFSI support in the State and I will forward the list to the Deputy in due course. However, this list may not be complete as it is possible that Irish private sector projects may receive funding from EFSI supported funds in other jurisdictions.
In addition, as the Deputy will be aware, the Minister for Public Expenditure and Reform has responsibility for capital expenditure and, in this context, engages with each line Department on an ongoing basis to consider and assess projects and the full range of available funding options.
The referred reply under Standing Order 42A was forwarded to the Deputy.
