Written Answers Nos. 74-87
74. Deputy Noel Rock asked the Minister for Finance the impact of the decline in value of the State's shares in a bank (details supplied) in 2016 ahead of the proposed sale of the State's shares in the bank. [10038/17]
Amharc ar fhreagraThe ISIF issued their Q4 Quarterly Update on Friday 17th February. Included as part of that update was a provisional valuation of the State's investment in AIB at the end of 2016 which stood at €11.3bn, down from €12.25bn at year end 2015. This represents an estimated decline in value of just under 10% during the year and can be compared against a fall of around 8% across the wider European banking sector over the same period.
This desk top valuation was conducted on behalf of the ISIF and was based on the estimated financial position of the bank at year end 2016 and publicly available information. AIB will report their annual results on Thursday 2nd March.
It is important to note that this is an "outside in" valuation produced for accounting purposes and was not informed by management's views of the prospects and risks for the business. This additional information would be disclosed in a published prospectus ahead of any proposed sale. Furthermore I would also highlight that in an IPO when one is selling a large volume of shares, the market usually applies what is known as an "IPO discount" and this is typically in the order of 5%-10% and occasionally more. Hence the price one gets on the day of flotation tends to be lower than what investors believe is the fundamental value of the business given the volume of shares being placed in one transaction and reflecting the fact that the State will also retain a significant stake in the bank which will be sold down over time. Taking these factors into consideration I do not believe that this valuation will have any material impact on our plans in relation to AIB this year.
As I have previously stated, any decision by the Government to proceed with a sale of our shares in AIB will be underpinned by the need to be satisfied that the market is prepared to put a fair and reasonable value on AIB, bearing in mind its current performance, its future prospects and the outlook for the economy. Officials in my Department continue to monitor market conditions and the performance of banking equities on an ongoing basis. While I cannot predict what market conditions will be like for bank shares over the coming year, it is our intention to be ready to execute a transaction if conditions allow.
75. Deputy Michael McGrath asked the Minister for Finance the amount of lending carried out by a company (details supplied) to date to the construction sector; his views on whether the State can do more to ensure the construction sector has access to finance to build the required homes and office accommodation here; and if he will make a statement on the matter. [9990/17]
Amharc ar fhreagraThe Ireland Strategic Investment Fund (ISIF) has invested in a number of significant financing platforms and projects in the construction sector.
One such platform is Activate Capital which has provided funding for approximately 1,917 new residential units in the Dublin area and has potential to support up to 11,000 new units. Other platforms in which ISIF is a co-investor include the Ardstone Residential Partnership and the Wilbur Ross Cardinal Commercial Real Estate Mezzanine Debt Fund.
ISIF is also examining the feasibility of establishing, in conjunction with the private sector, a Housing Investment Fund which would fund the delivery of substantial new mixed-tenure residential developments, comprising social and private housing, in a way that is both off-balance sheet and commercially viable. Engagement with a wide array of key stakeholders is currently ongoing.
ISIF is also involved in other housing-related measures, including:
- On-campus accommodation programmes of Higher Education Institution with ISIF having provided a €54m long term debt facility to DCU.
- Potential provision of equity finance to operators in the build-to-rent sector.
- Financing infrastructure which enables residential development, by working with other funding sources including the Local Infrastructure Housing Activation Fund (LIHAF), Local Authority resources and commercial investment. Two pilot projects currently being considered would facilitate 6,000 housing units.
More broadly, my Department is engaging with NAMA around the levels and pricing of debt and equity investment to ensure financing is being provided on competitive terms.
The availability of development finance alone is not sufficient to encourage development unless projects are commercially viable. As part of Rebuilding Ireland the Government has set out a comprehensive package of measures to address structural constraints which may be inhibiting the viability of residential development.
One such measure is the LIHAF, administered by the Department of Housing, Planning, Community and Local Government, the purpose of which is to provide up to €200m for local authorities who collaborate with housing providers to provide off-site infrastructure to facilitate housing developments which would otherwise not take place. Allocations under this funding structure are expected to be announced by end-March 2017.
76. Deputy Pearse Doherty asked the Minister for Finance the reason no credit retail firms have yet been authorised by the Central Bank; and if he will make a statement on the matter. [10014/17]
Amharc ar fhreagraI understand that the Deputy intended referring to credit servicing firms.
There are 14 firms on the Register of Credit Servicing Firms which is available on the Central Bank's website at http://registers.centralbank.ie/DownloadsPage.aspx. These firms are currently availing of the transitional arrangements in place under Section 34F of the Central Bank Act 1997 (as amended). The full suite of financial services legislation, including the various statutory Codes issued by the Central Bank, and Central Bank oversight thereof, apply to each of these transitional firms and they must comply with these requirements.
Following the enactment of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015, the Central Bank developed detailed Authorisation Requirements and Standards for credit servicing firms which set appropriately high requirements on applicant firms underpinned with a rigorous application process.
I understand that the Central Bank is currently putting applicant firms through this application process, to ensure that only firms that demonstrate compliance with these Standards are authorised by the Central Bank. However, the Central Bank does not comment on the individual applications of specific firms, in this case, the firms listed on the register as transitional credit servicing firms.
77. Deputy Ruth Coppinger asked the Minister for Finance his views on the concentration in ownership of residential development land by vulture funds as a result of land sales by NAMA; and if he will make a statement on the matter. [2180/17]
Amharc ar fhreagraI, as Minister for Finance, do not have a role in tracking the breakdown of ownership of residential development land - either generally or in relation to land sales by NAMA debtors or receivers. Therefore, it is not possible for me to comment on specific ownership concentrations or lack thereof.
I would suggest the Deputy consults the Property Registration Authority website (www.landdirect.ie) which records the names and addresses of every Registered Owner. The index is kept in respect of each county and shows the folio number(s) corresponding to the name.
In addition, information regarding the availability of residential zoned land is available on the Department of Housing and local authority websites and is based on a national survey of all lands zoned for residential or primarily residential development in statutory local authority development plans and local area plans across Ireland to determine the location and quantity of lands that may be regarded as being undeveloped and available for primarily residential development purposes. See www.housing.gov.ie/planning/residential-land-availability/residential-land-availability-survey.
The Housing Supply Taskforce for Dublin has recently collated data on the aggregated planning permissions and planning applications across the four Dublin local authorities which they have mapped and are available to view on the Department of housing website at www.housing.gov.ie/housing/construction-2020-strategy/dublin-housing-supply-task-force/housing-supply-coordination-task.
More generally, I would point out that Ireland would not be recovering the way it is if the Irish banks, NAMA and IBRC had not progressed their sales strategies in the manner they have done. It has only been through the sale of these assets and the accompanying investment that these assets have been developed and are contributing to our broader recovery. When we think of unfinished housing estates, dilapidated hotels or the unfinished skeletons of commercial offices and apartments, it has only been through the investment in these assets by the buyers of the assets and related loans that they have been brought to completion. It is as important today as it ever was that we remain open to investment capital for the development of our economy across the risk spectrum of investment opportunities.
78. Deputy Catherine Murphy asked the Minister for Finance if he will reaffirm his commitment given to the Committee of Public Accounts on 6 October 2016 (details supplied) to establish a statutory commission of investigation into NAMA's sale of Project Eagle, in view of the fact that the committee's report into the sale of Project Eagle is due to be published within the next few weeks; and if he will make a statement on the matter. [10030/17]
Amharc ar fhreagraMy position is unchanged regarding the establishment of a Commission of Investigation into Project Eagle.
If the Deputy is unsure of the Government position, I believe I clarified the stance on public record in the Dáil during Statements on the Establishment of a Commission of Investigation into NAMA on 1st February 2017.
During those Statements, I reiterated that we have confirmed that there is currently an agreement, in principle, to establish a Commission of Investigation. However, it is important that we receive the Report of the Public Accounts Committee on Project Eagle and consider any further information this Report may bring to light, the findings it presents and the evidence substantiating such findings, before the issue is finalised.
This Government and many Deputies, including the PAC Chairman, are aligned in the understanding that the imminent PAC report will be invaluable in assessing our next steps. We should consider and debate the contents and findings carefully before establishing the terms of reference for any such Commission of Investigation. There may well be questions currently being suggested for a Commission of Investigation which will be adequately covered off by the PAC report. There may also be findings supported by evidence which warrant further investigation.
It is sensible that the Oireacthas will fully study and debate the PAC report when it arrives. The agreement in principle to establish a Commission of Investigation remains. However, we should not establish Commissions of Investigation lightly and must ensure that any Commission of Investigation has specific terms of reference supported by evidence to justify its establishment. Commissions are expensive and time-consuming but serve an important purpose when other avenues of justice are not appropriate and when they are properly established on the basis of evidence to support their terms of reference.
79. Deputy Pearse Doherty asked the Minister for Finance the action the Government has taken to assist the almost 80,000 families in arrears on their family homes; and if he will make a statement on the matter. [10015/17]
Amharc ar fhreagraThe Deputy will be aware that the latest Central Bank bulletin on mortgage arrears, published on 12th December, indicated that there were 56,350 mortgages in arrears for more than ninety days. This represents 7.6 per cent of all residential mortgage loan accounts. The Deputy will also know from the latest Central Bank bulletin that of the total stock of 79,562 PDH accounts that were in arrears at end September, 2016, 26,531 (33 per cent) were classified as restructured at that time. There were 121,140 mortgage accounts classified as restructured at end September 2016, of which 88 per cent were deemed to be meeting the terms of their current restructure arrangement. It is, therefore, reasonable to take the view that a significant percentage of borrowers in mortgage arrears are engaging with their lender, making their agreed mortgage payments and will in time exit from mortgage arrears.
The Deputy will also be aware that the Programme for a Partnership Government and the Action Plan for Housing and Homelessness sets out the Government's priorities in relation to dealing with mortgage arrears. I wrote to the Governor of the Central Bank to request that an assessment be undertaken of the range of available sustainable restructure solutions offered by banks and non-bank entities. The Central Bank completed its assessment last year and their report is published on the Department of Finance website. The assessment finds a comprehensive range of available restructuring solutions being offered and delivered by both bank and non-bank entities and notes considerable progress in addressing mortgage arrears since the peak.
The Deputy may also be aware of other initiatives being rolled out across Government, such as the Abhaile mortgage arrears resolution service, and amendments to the mortgage-to-rent (MTR) scheme which will make the MTR process quicker, more transparent, easier to navigate for borrowers and ultimately more accessible to more households in mortgage distress. The Department of Housing, Planning, Community & Local Government is also exploring potential mechanisms that would facilitate investment into the residential market by private equity firms using the MTR model so that greater numbers of indebted borrowers may remain in their own homes as tenants.
80. Deputy Joan Burton asked the Minister for Finance the contact he has had with the European Commissioner for Competition, Ms Margrethe Vestager. [1817/17]
Amharc ar fhreagraI refer to your previous parliamentary question on this matter (39938/16 - question no. 311 of 17th January 2017).
A meeting between myself and Commissioner Vestager was held in July 2016, and there was also a discussion that involved the Commissioner at the informal Ecofin meeting in Bratislava in September 2016.
I had a meeting with Commissioner Vestager at the end of January 2017 when she was in Dublin to attend the Oireachtas Joint Committee on Finance, Public Expenditure and Reform and Taoiseach.
82. Deputy Brendan Howlin asked the Taoiseach when the Cabinet committee on social policy and public service reform last met. [10035/17]
Amharc ar fhreagraThe Cabinet Committee on Social Policy and Public Service Reform last met on 6th February 2017.
83. Deputy Catherine Murphy asked the Taoiseach the cost per year for the past three years of the retrieval and return of hard copy files stored at off site locations. [9102/17]
Amharc ar fhreagraThere has been no expenditure by my Department on the retrieval and return of hard copy files stored at off site locations in the last three years.
84. Deputy Catherine Murphy asked the Taoiseach the cost per year for the past three years of the storage of data and-or files on cloud storage or third party servers. [9103/17]
Amharc ar fhreagraNo costs were incurred by my Department during the last three years in respect of such storage, as no Department data or files are stored on cloud storage or third party servers.
85. Deputy Niall Collins asked the Taoiseach if all regulatory impact assessments for his legislative proposals are published on his Department's websites; and the web address for each such site. [9413/17]
Amharc ar fhreagraMy Department has carried out two regulatory impact analyses, on the Statute Law Revision Act 2007 and the Statute Law Revision Bill 2009. Both are available on my Department's wesbite - www.taoiseach.gov.ie.
86. Deputy Catherine Murphy asked the Taoiseach the legal fees incurred on freedom of information, FOI, requests received by his Department; and the staff hours involved in the processing of FOI requests for the past three years. [9685/17]
Amharc ar fhreagraMy Department did not incur any legal fees processing Freedom of Information (FOI) requests in the past three years. When my Department requires legal advice in relation to FOI issues it is obtained from the Office of the Attorney General.
The number of staff hours spent on processing FOI requests in my Department is not recorded centrally. It spans a wide cohort of staff involved in the coordination of requests, staff across all multiple divisions routinely searching and retrieving records and individual decision makers and support staff. Recording time spent on processing requests is strictly required where charges may apply when time spent on search and retrieval exceeds five hours. No such charges arose in 2017.
It is worth noting that since the introduction of the Freedom of Information Act 2014, the number of requests has increased over the past three years trebling from 92 in 2013 to 275 in 2016.
87. Deputy Niall Collins asked the Taoiseach the number of Irish small and medium-sized enterprises, SMEs, active in manufacturing, in tabular from; and the equivalent figure for the EU. [9435/17]
Amharc ar fhreagraSmall and Medium Enterprises (SMEs) are defined as having less than 250 persons employed. In 2014, the latest year for which data is available, Ireland had 14,484 SMEs in manufacturing. The EU-28 total was 2,097,000 SMEs in manufacturing. Irish figures for 2015 will be available in June 2017.
The following table gives a breakdown of SMEs in manufacturing in each EU Member State, together with figures for micro-enterprises (less than 10 persons employed), small enterprises (10 to 49 persons employed), medium enterprises (50 to 249 persons employed), and large enterprises.
Number of Manufacturing Enterprises by Size Class and Member State, 2014
|
Size of enterprise (persons employed) |
||||||
|
Micro (<10) |
Small (10-49) |
Medium (50-249) |
SMEs (<249) |
Large (250 or more) |
All Manufacturing Enterprises |
|
|
EU - 28 |
1,750,000 |
276,000 |
71,000 |
2,097,000 |
16,000 |
2,113,000 |
|
Belgium |
29,944 |
4,323 |
1,169 |
35,436 |
311 |
35,747 |
|
Bulgaria |
22,785 |
5,553 |
1,747 |
30,085 |
289 |
30,374 |
|
Czech Republic |
157,909 |
8,293 |
3,045 |
169,247 |
794 |
170,041 |
|
Denmark |
10,686 |
3,174 |
955 |
14,815 |
192 |
15,007 |
|
Germany |
138,436 |
53,430 |
16,484 |
208,350 |
4,252 |
212,602 |
|
Estonia |
4,984 |
1,137 |
429 |
6,550 |
63 |
6,613 |
|
Ireland |
12,503 |
1,487 |
494 |
14,484 |
144 |
14,628 |
|
Greece |
55,447 |
2,068 |
581 |
58,096 |
115 |
58,211 |
|
Spain |
140,164 |
21,573 |
4,124 |
165,861 |
728 |
166,589 |
|
France |
205,876 |
22,315 |
5,545 |
233,736 |
1,357 |
235,093 |
|
Croatia |
16,784 |
2,526 |
633 |
19,943 |
144 |
20,087 |
|
Italy |
328,486 |
58,390 |
8,349 |
395,225 |
1,197 |
396,422 |
|
Cyprus |
4,570 |
.. |
.. |
5,070 |
.. |
.. |
|
Latvia |
7,859 |
1,411 |
476 |
9,746 |
59 |
9,805 |
|
Lithuania |
15,006 |
2,138 |
699 |
17,843 |
132 |
17,975 |
|
Luxembourg |
.. |
.. |
.. |
.. |
.. |
.. |
|
Hungary |
40,097 |
5,491 |
1,623 |
47,211 |
403 |
47,614 |
|
Malta |
.. |
.. |
.. |
.. |
.. |
.. |
|
Netherlands |
53,105 |
6,039 |
1,924 |
61,068 |
326 |
61,394 |
|
Austria |
18,576 |
5,024 |
1,456 |
25,056 |
468 |
25,524 |
|
Poland |
157,056 |
15,907 |
6,131 |
179,094 |
1,545 |
180,639 |
|
Portugal |
54,420 |
9,470 |
2,061 |
65,951 |
250 |
66,201 |
|
Romania |
34,577 |
9,612 |
3,118 |
47,307 |
784 |
48,091 |
|
Slovenia |
16,452 |
1,525 |
477 |
18,454 |
107 |
18,561 |
|
Slovakia |
60,348 |
3,388 |
964 |
64,700 |
275 |
64,975 |
|
Finland |
17,035 |
2,986 |
822 |
20,843 |
199 |
21,042 |
|
Sweden |
47,482 |
4,824 |
1,284 |
53,590 |
306 |
53,896 |
|
United Kingdom |
95,804 |
22,566 |
6,220 |
124,590 |
1,377 |
125,967 |
.. Indicates that the data has been suppressed for confidentiality reasons.
