Written Answers Nos. 168 - 189
168. Deputy Noel Rock asked the Tánaiste and Minister for Justice and Equality if she will review the conditions for bail for those convicted of sexual assault offences; and if she will make a statement on the matter. [14145/17]
Amharc ar fhreagraI can assure the Deputy that as part of the Government's response to crime, one of our major objectives is to focus on the key area of strengthening the law to get tougher on serious and repeat offenders. In that context, I published the Bail (Amendment) Bill in December 2016, to provide for stricter bail terms for repeat serious offenders and to strengthen Garda powers to deal with breaches of bail.
As the Deputy will be aware, a decision to grant bail in a particular case is a matter for the court, which is, subject only to the Constitution and the law, independent in the exercise of its judicial functions. There is a constitutional presumption in favour of bail, since, in the eyes of the law, a person is innocent until proven guilty. Within that constitutional framework, and in accordance with the Programme for a Partnership Government, the new Bail Bill will improve the operation of the Bail system and make the law as effective as possible in protecting the public against crimes committed by persons on bail while also safeguarding the rights of the individual.
The new Bill specifically provides that the courts must have regard to persistent serious offending by an applicant for bail; it expands the conditions which a court may impose when granting bail, including a conditions requiring an accused person not to have contact with the victim of the alleged offence or any member of the victim’s family and the imposition of a curfew. The Bail Bill will also provide that electronic monitoring may be imposed as a bail condition if the prosecution applies to the court for that condition.
In addition, the Bill will give the Garda Síochána new powers of arrest without warrant for a breach of bail conditions where it is necessary to arrest the person immediately to prevent absconding or to prevent harm, interference or intimidation to the victim or a witness.
There are also existing legislative provisions which provide for the monitoring and management of sex offenders following release from prison. Under the Sex Offenders Act 2001, convicted sex offenders must notify An Garda Síochána of their name and address as well as any subsequent changes to those details. The 2001 Act also provides for monitoring of certain sex offenders including through post release supervision by the Probation Service.
169. Deputy Alan Kelly asked the Tánaiste and Minister for Justice and Equality if she will confirm that no Minister or Minister of State under her remit since 2011 has claimed overnight expenses for staying in Dublin. [14568/17]
Amharc ar fhreagraI can confirm that no overnight expense for staying in Dublin has been paid from my Department's Vote to a Minister or Minister of State during the period since 2011.
170. Deputy Thomas Byrne asked the Minister for Finance if diagnosed severe autism will be included on the criteria for a primary medical certificate. [12966/17]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit), an exemption from motor tax and a grant in respect of fuel, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant, the scheme is estimated to have cost of the order of €65m in 2016. This figure does 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.
The disability criteria for the tax concessions available under the scheme have changed over time. When the scheme was first introduced in 1968, the legislation only allowed for one medical ground. In 1989, four new medical grounds were added and in 1994, one new medical ground was added.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities. I have managed to maintain the relief at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
171. Deputy Charlie McConalogue asked the Minister for Finance his plans regarding the commencement of the section 46 flat rate addition amendment (details supplied); and if he will make a statement on the matter. [13276/17]
Amharc ar fhreagraSection 86A of the VAT Consolidation Act 2010 (as inserted by Section 47 of the Finance Act 2016) is an enabling provision that allows me to exclude by Ministerial Order any specified agricultural sector where the business structures or models employed result in a systematic excess of flat-rate addition payments over input costs borne by flat-rate farmers within that sector. I can make an order for exclusion where The Revenue Commission has carried out a review on a sector and I am satisfied that, because of the business structures, contractual arrangements or models in place in a particular sector, the application of the flat-rate addition within that sector has resulted in, and would otherwise continue to result in, a systematic excess of flat-rate addition payments over VAT on inputs incurred by flat-rate farmers in that sector. If it proves necessary to do so, I will make any orders required, but as indicated at Report Stage in the Dail, I will give any sectors affected adequate time to make the necessary changes to their business models and I do not envisage making a Ministerial Order to exclude any particular sector from the flat-rate scheme until the latter part of 2017.
I am aware of evidence of business structures and contractual arrangements in the poultry sector that would be likely to result in an excess of flat rate addition payments to farmers over the VAT borne on their input costs, and I am advised by Revenue that they are in the process of meeting relevant parties in that sector to establish if they plan to unwind any structures and arrangements that are designed or likely to give rise to overcompensation of farmers for the VAT borne on their input costs. If Revenue are not satisfied that any such structures and arrangements will be unwound within an acceptable timeframe they will complete a review of the sector as provided for in the legislation. Upon receipt of such a review, if I am satisfied that a systemic excess has taken place in their sector, I will have no hesitation in making an order to exclude the sector from the flat-rate scheme.
172. Deputy Niamh Smyth asked the Minister for Finance if there is legislation or rules on the number of bookmakers that can open in any town at the one time; the legislation on this issue at present; and his plans for new proposals in this area. [13761/17]
Amharc ar fhreagraThe legislation governing the licensing of bookmakers is contained within the Betting Acts 1931 to 2015. The enactment of the Betting (Amendment) Act 2015 was the first step towards updating the betting regulatory regime and in particularly put in place a regulatory framework for remote operators.
The Betting Acts 1931 to 2015 provide that the Revenue Commissioners may issue a Bookmakers' licence to a qualified person when the individual makes an appropriate application setting out the information required, is in possession of a Certificate of Personal Fitness issued within 21 days of the submission of the licence application, and pays the appropriate excise duty. In the case of a body corporate, each of the relevant officers must be in possession of a Certificate of Personal Fitness.
There is no prohibition on the number of bookmakers that can open in a town at any one time.
173. Deputy John Brady asked the Minister for Finance if he has explored the possibility of introducing a disability tax credit similar to the blind persons tax credit; if so, the estimated costs of setting up such a tax credit; and if he will make a statement on the matter. [14040/17]
Amharc ar fhreagraThe Deputy may be aware that there are currently a number of supports within the tax system available to disabled persons or to persons who provide care to disabled persons. These include the Blind Person's Tax Credit and the Incapacitated Child and Dependent Relative Tax Credits. Relief from tax is also available in relation to the costs incurred in employing persons to take care of incapacitated individuals and the cost of the incapacitated individual's medical expenses. Certain exemptions from Income Tax may also be available depending on the individual's circumstances, for example lump sum payments can be exempt from tax where paid by an employer because of injury or disability.
More detailed information on these types of measures is available from 'Revenue Leaflet IT12 General Guide to Taxation for People with Disabilities' which is available from the Revenue website at http://www.revenue.ie/en/tax/it/leaflets/it12.pdf.
It is not possible to provide the Deputy with an estimated cost for a general disability tax credit, were such a credit to be introduced, as this would depend on the eligibility criteria chosen. However it is my view that the tax system, which has as its primary function the collection of tax revenues to fund public expenditure, is not the most appropriate route through which to provide such supports. The tax system is limited in its ability to provide support to disabled individuals as tax measures can only benefit those whose incomes are high enough to pay tax and thus avail of any additional tax credit or relief. Direct expenditure measures can have a wider reach than taxation measures, and it is for this reason that direct expenditure is the main route through which assistance and services are provided by the State to individuals affected by disability.
174. Deputy Dara Calleary asked the Minister for Finance the status of the State's national debt in tabular form; the interest rate and redemption date on each component of the national debt; and if he will make a statement on the matter. [12794/17]
Amharc ar fhreagraThe National Debt is the net debt incurred by the Exchequer after taking account of cash balances and other financial assets. Gross National Debt is the principal component of General Government Debt.
Details of the provisional and unaudited composition of Gross National Debt, its residual maturity and average interest rates as at end-2016 are set out in the following table.
|
Gross National Debt as at end December 2016 |
|||
|
Instrument |
Outstanding Balance |
Weighted Average Residual Maturity |
Weighted Average Interest Rate |
|
€bn |
Years |
% |
|
|
Government Bonds |
121.6 |
11.1 |
3.7%1 |
|
EU-IMF Programme |
50.3 |
11.22 |
2.1%2 |
|
State Savings |
17.23 |
3 |
0.33%-1.5%3 |
|
Other Medium and Long-Term Debt |
1.7 |
16.84 |
3.0%4 |
|
Short term debt |
5.95 |
0.35 |
-0.3%5 |
|
Total Gross National Debt |
196.7 |
||
|
Sources: NTMA, CSO, Department of Finance |
The 2016 figures are provisional and unaudited. They are therefore subject to revision.
Rounding may affect totals. National Debt figures take account of the effect of currency hedging transactions.
Notes to table:
1. The nominal interest rate is displayed, which differs from the yield at issue.
2. EFSM loans are subject to maturity extensions designed to bring the original weighted average maturity to 19.5 years. It is not expected that Ireland will have to refinance any of its EFSM loans before 2027. However as the revised maturity dates of individual EFSM loans will only be determined as they approach their original maturity dates, the weighted average maturity figure above does not fully reflect the maturity extensions. Including certain assumptions for EFSM maturity extensions, the estimated residual weighted average maturity of EU-IMF Programme loans was 13 years at end-2016. The EU-IMF Programme interest rate is an estimated weighted average, euro equivalent interest rate.
3. State Savings Schemes also include money invested by depositors in the Post Office Savings Bank (POSB) which does not form part of the National Debt but is part of other General Government Debt in the table. Taking into account POSB Deposits, total State Savings outstanding were €20.1 billion at end-December 2016. State Savings include products with original maturities ranging from 3 to 10 years. These products generally have a very high re-investment rate. Irrespective of the original term, NTMA State Savings products can be encashed on demand at any time - repayment takes 7 days. Prize bonds can be encashed when 90 days have elapsed after the purchase date. The interest rates shown are the maximum interest rates (AER) payable on the fixed term, fixed rate products available for purchase at end 2016.
4. The table shows the weighted average maturity and interest rate for Private Placements, Euro Medium Term Notes, and loans from the European Investment Bank and Council of Europe Development Bank.
5. The table shows the weighted average maturity and euro equivalent interest rate for Treasury Bills, Euro Commercial Paper, Exchequer Notes and Central Treasury Notes. The short-term debt outstanding balance also includes Borrowing from Ministerial Funds.
175. Deputy Dara Calleary asked the Minister for Finance the annual interest rate of the debt he plans to redeem from the proceeds from the sale of a bank (details supplied); and if he will make a statement on the matter. [12795/17]
Amharc ar fhreagraAs I have previously stated it is my position that the proceeds from the sale of the State's shareholdings in Irish banks, including AIB, will be used to reduce the outstanding level of public debt. The rationale for this approach is that the State's debt levels have been consistently identified as a significant risk factor by national and international experts, such as the Irish Fiscal Advisory Council, the Central Bank, the EU Commission, and the International Monetary Fund amongst others. The State's economic and fiscal interests will be best served by reducing the level of public debt and its associated risks.
It will be a matter for the National Treasury Management Agency (NTMA) to incorporate the proceeds of these sales into its future funding and debt management strategy at the appropriate time. The NTMA can adjust the funding strategy in the light of monies received.
At end-2016, the average interest rate on the outstanding stock of public debt was estimated to be just over 3 per cent.
176. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Questions Nos. 235, 243 and 244 of 28 February 2017, if he will confirm, in respect of each financial institution involved in the Central Bank's tracker examination, the identity of the independent third parties overseeing the internal review process within the institution; and if he will make a statement on the matter. [12807/17]
Amharc ar fhreagraThe Central Bank has advised me that under the framework of the Tracker Mortgage Examination lenders are required to appoint external independent third party assurers to oversee the Tracker Examination and to ensure that it is being carried out in line with the Central Bank's framework for the conduct of the Tracker Examination. However, the Central Bank has also advised that it is not in a position to comment on the third parties that individual lenders have appointed to oversee their review process within each institution due to confidentiality requirements under Central Bank legislation as this is lender specific supervisory information.
177. Deputy Dara Calleary asked the Minister for Finance the amount of audits conducted by the Revenue Commissioners in 2015 and 2016, by county, in tabular form; the average time in each county in each year for the audit process to be completed; and if he will make a statement on the matter. [12843/17]
Amharc ar fhreagraI am advised by Revenue that it undertakes a broadly based programme of compliance interventions that aims to support a strong voluntary tax compliance culture, identify and tackle compliance risks, effectively combat and sanction tax evasion and fraud and minimise the burden on the compliant taxpayer. The compliance interventions undertaken by Revenue, which are risk focused, range from lighter touch non-audit interventions to in-depth investigations with a view to criminal prosecution for serious tax and customs fraud and evasion. Audits are, therefore, one of a range of compliance interventions undertaken by Revenue.
I am also advised by Revenue that statistics in relation to Revenue audits are not kept by reference to county. However the following table shows the number of audits and duration of completed in 2015 broken down by Revenue Districts and as can be seen from the table, equates to an approximate county breakdown in many instances. Also shown is the number of non-audit interventions (risk management interventions) for the same period. Final figures for 2016 are not available yet and will be provided directly to the Deputy as soon as they are available.
The length of time taken to conclude an audit will vary from cases to case. I am advised by Revenue that the data can be skewed by outlier cases. Furthermore, the duration of audits depends on a number of factors, including the complexity of the matters under audit and the extent to which there may be a dispute as to any tax technical matter involved, the level of co-operation from the taxpayer and/or the tax advisor, whether there is agreement on the level of penalty that should apply in the context of any settlement and the ability of the taxpayer to pay the tax, interest and penalty arising in the context of a settlement. Taxpayers who disagree with the findings of Revenue have a number of options including internal or external review of the conduct of the audit, an appeal to the Tax Appeals Commission (TAC) or recourse to the courts. These processes will contribute to the duration of an audit.
|
Revenue District(s)/Divisions |
Number of audits closed in 2015 |
Average number of days open |
Number of risk management interventions closed in 2015 |
|
Dublin Districts |
1,684 |
374 |
28,699 |
|
Galway City/Roscommon District |
274 |
374 |
4,177 |
|
Galway County District |
268 |
369 |
5,998 |
|
Mayo District |
238 |
215 |
2,322 |
|
Sligo District (includes Sligo/Leitrim/Longford) |
203 |
294 |
3,129 |
|
Donegal District |
242 |
247 |
3,076 |
|
Westmeath/Offaly District |
226 |
409 |
3,265 |
|
Louth District |
202 |
232 |
3,491 |
|
Cavan/Monaghan District |
183 |
244 |
3,538 |
|
Tipperary District |
206 |
362 |
2,320 |
|
Kilkenny District (includes Kilkenny/Carlow/Laois) |
367 |
154 |
3,551 |
|
Waterford District |
221 |
332 |
2,081 |
|
Wexford District |
216 |
315 |
2,439 |
|
Wicklow District |
196 |
431 |
1,348 |
|
Kildare District |
245 |
268 |
2,203 |
|
Meath District |
297 |
291 |
3,382 |
|
Cork Districts |
626 |
419 |
9,428 |
|
Limerick District |
303 |
222 |
2,881 |
|
Clare District |
174 |
286 |
2,402 |
|
Kerry District |
120 |
356 |
2,393 |
|
Large Cases Division |
127 |
398 |
5,112 |
178. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding VRT on imported cars; and if he will make a statement on the matter. [12848/17]
Amharc ar fhreagraI presume the Deputy is referring to the recent Advocate General Opinion in relation the Court of Justice of the European Union Case C-522/15 and some of the newspaper reports arising from that opinion.
Firstly, I would like to clarify the background. The EU Commission have purported that Ireland has not fulfilled its obligations under Article 56 (freedom to provide services) of the Treaty on the Functioning of the European Union due to the Vehicle Registration Tax (VRT) treatment of vehicles that are brought into the State on a temporary basis.
The Case was heard in the Grand Chamber of the Court of Justice of the European Union on 22 November 2016. The Court has not given its ruling yet. However, the Advocate General delivered his opinion on the Case on 2 March 2017. In his opinion the Advocate General proposed that the Court should find that the action brought by the Commission was well founded.
However, I must strongly emphasise that the Advocate General's Opinion is not binding on the Court of Justice. It is the role of the Advocates General to propose to the Court, in complete independence, a legal solution to the cases for which they are responsible. The Judges of the Court now begin their deliberations in this case and judgment will be given at a later date - normally in 2 to 3 months. In cases such as this it is not exceptional that the Court take a different position to the Advocate General.
While some news outlets understood the status and implication of the Advocate General's Opinion, the newspaper the Deputy refers to made an error in both the headline and the article itself. I'm advised that the newspaper has now amended its online edition to reflect the true facts.
179. Deputy Sean Fleming asked the Minister for Finance the details of the incapacitated child tax credit and the dependent relative tax credit; the conditions necessary for a person to apply and the amount available; and if he will make a statement on the matter. [12932/17]
Amharc ar fhreagra182. Deputy Róisín Shortall asked the Minister for Finance the uptake levels of the incapacitated child tax credit; his views on the need for a public awareness campaign to improve the uptake of this tax credit; and if he will make a statement on the matter. [13092/17]
Amharc ar fhreagra222. Deputy Margaret Murphy O'Mahony asked the Minister for Finance the number of persons availing of the incapacitated child tax credit for each of the years 2011 to 2016 and to date in 2017. [13546/17]
Amharc ar fhreagraI propose to take Questions Nos. 179, 182 and 222 together.
The incapacitated child tax credit and the dependent relative tax credit are two separate and distinct tax credits.
The entitlement to the incapacitated child tax credit is provided for in section 465 of the Taxes Consolidation Act (TCA) 1997 (as amended). This tax credit is €3,300 per qualifying child for 2017 and a taxpayer is entitled to the tax credit for a year if it is proven that he or she had a permanently incapacitated living child:-
- under 18 years of age, or
- over 18 years who is permanently incapacitated from maintaining himself/herself and became permanently incapacitated either before reaching 21 years, or had become so incapacitated after reaching the age of 21 years but while receiving full-time instruction at any university, college, school or other educational establishment.
To establish entitlement to this credit in respect of any child, medical evidence is required to confirm both the extent of the incapacity, and whether the incapacity permanently prevents the child from being able to maintain himself or herself independently when over the age of 18 years. Once confirmation of entitlement has been provided with the initial claim, the credit will be awarded to the eligible taxpayer in subsequent tax years provided the relevant conditions continue to be met.
As regards a public awareness campaign to improve the uptake of the incapacitated child tax credit, I am advised by Revenue that they have regular contact with relevant Government bodies and agencies, and voluntary bodies, about the incapacitated child tax credit. Those contacts include regular updating of information to the Citizens Information Board for their website Citizensinformation.ie. Those updates include information about the credit, the conditions for claiming the credit, how to claim it and the necessary supporting evidence required. The approach towards raising awareness of the incapacitated child tax credit is in keeping with other initiatives undertaken by Revenue to publicise taxpayers' entitlements to tax credits and reliefs which included sending a targeted, written reminder, late last year, to almost 140,000 taxpayers who had not claimed any additional tax credits in the previous four years. Revenue is always open to exploring ways in which awareness of the credit may be increased.
In relation to the trend in the number of persons availing of the incapacitated child tax credit for the years 2011 to 2017, I am advised by Revenue that the trend in the number of claims, and associated costs, for the incapacitated child tax credit is available in the Costs of Tax Expenditures Table on the Revenue Statistics webpage at
http://www.revenue.ie/en/about/statistics/costs-expenditures.html.
The information provides an annual breakdown of the cost to the Exchequer and the associated numbers claiming the "Additional Credit for Incapacitated Child" for the years 2004 to 2014; which are the years for which complete PAYE and self-employed income tax filing data are available. The published information will be updated in due course as newer data, including from the 2015 Form 11 for self-employed cases, is available. However, despite the absence of complete information for 2015 onwards, Revenue has also advised that there is more timely information available on claims in respect of PAYE taxpayers in employment. That data reflects the number of PAYE taxpayers with the incapacitated child tax credit on their record, irrespective of whether the taxpayer has the earning capacity to use some or all of the credit.
The comparison of the published website data (PAYE and self-employed taxpayers who have used all or some of the incapacitated child credit) up to 2014, and provisional data for PAYE taxpayers only up to 2017, is as follows:
|
Year |
PAYE taxpayers in employment with the credit on their record |
PAYE and self-employed taxpayers: claims giving rise to a cost to the Exchequer (years for which complete data is available) |
|
2013 |
14,682 |
17,700 |
|
2014 |
15,292 |
20,300 |
|
2015 |
15,673 |
|
|
2016 |
15,890 |
|
|
2017 |
15,893 |
The entitlement to the dependent relative tax credit is provided for in section 466 of the TCA 1997.
The dependent relative tax credit is €70 for 2017. However, if the income of the dependent relative exceeds the maximum amount payable for the State Pension (Contributory) plus an additional €280 in the year of assessment, which amounts to €14,504 for 2017, there is no entitlement to the credit.
The conditions for entitlement to the tax credit are that an individual must prove that he or she maintains, at his/her own expense, a:
- relative, including a relative of his spouse or civil partner, who is unable due to old age or infirmity to maintain him/herself,
- widowed parent of the claimant or of the claimant's spouse or civil partner, whether incapacitated or not, or
- son or daughter, or a child of his/her civil partner who resides with the claimant and on whose services the claimant is compelled to depend on due to old age or infirmity.
The dependent relative tax credit cannot be claimed for a child if the incapacitated child tax credit is claimed. The dependent relative tax credit continues to be awarded to the eligible taxpayer in subsequent tax years provided the conditions continue to be met.
Details in the respect of the number of claims, and associated costs, for the dependent relative tax credit are available in the Costs of Tax Expenditures Table on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/costs-expenditures.html.
180. Deputy Kevin Boxer Moran asked the Minister for Finance if the Revenue Commissioners have discretion to allow tax defaulters who have built up debts to some extent due to mental illness or addiction to alcohol or drugs but who are now recovering, subject to independent medical assessment and verification, to be able to repay their liabilities to an agreed programme and timescale without necessarily being loaded with sometimes punitive levels of interest; if not, if he will examine this matter; and if he will make a statement on the matter. [13030/17]
Amharc ar fhreagraI am advised by Revenue that as regards any element of tax default, details of how a taxpayer can correct any errors that have been made in or remedy any omissions from any tax return they have filed are set out in Revenue's Code of Practice for Revenue Audit and other Compliance Interventions (the Code), which has recently been updated. More details, including the full Code are available on the Revenue website at www.revenue.ie.
Revenue will work with taxpayers towards dealing with tax debts, no matter how they might arise, in a way that has regard to the need to support a strong voluntary tax compliance culture, the need to ensure a level playing field for all taxpayers and has appropriate regard for the circumstances of the taxpayer in any given situation. In this latter context I am further advised that it is Revenue practice to respond sensitively to the type of circumstances outlined by the Deputy.
Revenue's ability to arrive at a mutually acceptable arrangement will be predicated on open and honest engagement by the taxpayer and by timely compliance for future tax debts as they arise. Payment of arrears of tax or payment by way of a phased payment arrangement will include interest, which is a statutory charge legislated for by the Oireachtas and provided for in Section 1080 of the Taxes Consolidation Act 1997. I am satisfied that collection of interest by Revenue is a key element in reflecting the value of money forgone by the Exchequer where a taxpayer does not pay what is due on time and is also vital in supporting the efforts of the vast majority of taxpayers who are voluntarily and fully compliant.
181. Deputy Róisín Shortall asked the Minister for Finance the rights of mortgage holders in respect of the ownership or changed ownership of their mortgage; and the way in which a person may seek this information. [13090/17]
Amharc ar fhreagraAs the Deputy will be aware, when a consumer takes out a loan from a regulated lender it is subject to all the relevant Irish and EU consumer protections. I understand from the Central Bank that most loan agreements include a clause that allows the original lender to sell the loan on to another firm.
It is important to highlight that the transfer of a loan from one entity to another does not change the terms of the contract or the borrower's rights and obligations under the original contract. If a borrower is unsure whether their loan can be sold on by the original lender to another firm, they should check the terms and conditions of the loan agreement or contact the original lender.
When a loan is sold on to another regulated entity, the relevant Irish and EU consumer protections continue to apply. The Consumer Protection (Regulation of Credit Servicing) Act 2015 ensures that borrowers retain the same rights as they had prior to the sale of the loan. These include the various statutory codes (such as the Consumer Protection Code, Code of Conduct on Mortgage Arrears) issued by the Central Bank of Ireland and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 which came into operation in July 2016.
In addition, Provision 3.11 of the Central Bank's Consumer Protection Code 2012 requires that, where a regulated lender intends to transfer all or part of its regulated activities to another regulated entity, it must provide advance notification to both the Central Bank and affected consumers. Since the enactment of the Consumer Protection (Regulation of Credit Servicing) Act 2015 the original lender must now provide a consumer with at least 2 months' notice before transferring all or part of its loan book covered by the Code to another person, including where the transferee is an unregulated entity. Where the transferee is an unregulated entity, the Code now requires that the regulated lender also notify the consumer of the regulated entity that will be 'servicing' the loan for the unregulated entity. Furthermore, in the event that there is a change in the regulated credit servicing firm, the existing firm must also notify the Central Bank and the consumer in advance, in accordance with the timelines set out under Provision 3.11 of the Central Bank's Consumer Protection Code.
183. Deputy Niamh Smyth asked the Minister for Finance the status of the plan which he announced in budget 2017 to extend mortgage interest relief; and if he will make a statement on the matter. [13124/17]
Amharc ar fhreagraAt present, Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. Mortgage interest relief has been abolished for homes purchased since 1 January 2013.
In the Programme for a Partnership Government a commitment was given to retain mortgage interest relief (MIR) beyond the current end date on a tapered basis. As legislation currently provides for the relief to continue until the end of December 2017, it was not necessary to include legislation in Finance Act 2016 to provide for the tapered extension of the relief. However in my Budget speech last October I confirmed my intention to extend MIR beyond the current end date on a tapered basis to 2020. The purpose of the tapered extension proposal is to avoid a sudden significant increase in mortgage repayments for those losing the relief, but instead to withdraw the relief gradually, allowing the mortgage holder time to adjust to the change in mortgage repayments.
Final decisions in relation to the tapered extension of the relief will be considered in the context of my deliberations for Budget 2018, which is scheduled to be announced in October.
A review of policy considerations and potential costs relevant to the extension of MIR was contained in the Income Tax Reform Plan published by my Department in July last year and may be of interest to you. The plan is available at: http://www.finance.gov.ie/sites/default/files/Income%20Tax%20Reform%20Plan-FINAL_0.pdf.
184. Deputy Michael McGrath asked the Minister for Finance the number of credit unions that, as at 31 January 2017, have had their AGMs delayed by the Central Bank for more than nine months. [13153/17]
Amharc ar fhreagra185. Deputy Michael McGrath asked the Minister for Finance his views on the Central Bank's power under section 78(4) of the Credit Union Act 1997 (details supplied), in view of the fact that a number of credit unions have had their AGMs delayed by the Central Bank for periods exceeding the maximum postponement period of nine months as stated in the Act. [13154/17]
Amharc ar fhreagraI propose to take Questions Nos. 184 and 185 together.
The Registrar of Credit Unions at the Central Bank of Ireland is responsible for the regulation of credit unions registered under the Credit Union Act, 1997 (1997 Act), as amended. In accordance with Section 78(2) of the 1997 Act, credit unions are required to hold an Annual General Meeting (AGM), within four months of the end of the financial year. I have been informed by the Central Bank that in relation to the holding of AGMs by credit unions in accordance with Section 78(2) of the 1997 Act, the Central Bank works closely with credit unions on a case by case basis to resolve any regulatory issues arising before a credit union holds its AGM. In this regard the Central Bank suggests that members should seek information from their individual credit union regarding the proposed timing of their AGM. Under section 78(4) of the 1997 Act the Central Bank may direct a credit union to postpone, for a period not exceeding nine months, the holding of the AGM. However, the Central Bank informs me that at present, no credit union has been directed by the Central Bank to postpone the holding of their AGM. I have been further informed by the Central Bank that as at 31 January 2017, there were 13 credit unions that had not held AGMs for more than 9 months. As at 15 March 2017, this number has reduced to 12, representing approximately 4% of the 286 active credit unions. The Central Bank expects that the number of credit unions with AGMs outstanding will continue to reduce in the coming weeks, as a number of these AGMs are due to be scheduled. It is the responsibility of any credit union that has not held its AGM, to ensure that all regulatory issues are addressed so that any outstanding AGMs can be held as soon as possible. The Central Bank will continue to work closely with all of those credit unions to ensure that they address any regulatory issues so that their AGMs can take place.
Any actions taken by the Central Bank are taken in the interests of credit union members, the protection of their savings and in the interests of the orderly and proper regulation of the business of a credit union in line with our statutory mandate.
186. Deputy Joan Burton asked the Minister for Finance his plans regarding the proceeds of a proposed dividend from a bank (details supplied); and if he will make a statement on the matter. [13158/17]
Amharc ar fhreagraAs the Deputy will be aware the Ireland Strategic Investment Fund (ISIF) holds the AIB shares on behalf of the State as part of its Directed portfolio. Dividend payments from the State's shareholding in the banks are therefore made in the first instance to the ISIF.
It is important to note that payments from the ISIF to the Exchequer arising from the proceeds of the disposal of the State's shareholdings in the Banks, including any dividends arising, are provided for under Section 47, (4) of the NTMA (Amendment) Act 2014. This legislation allows the Minister to direct the NTMA to make such payments to the Exchequer in respect of the proceeds of any such disposal or to take other steps as set out in the section in respect of such proceeds.
As I have previously stated it is my position that the proceeds from the sale of the State's shareholdings in Irish banks, including AIB, will be used to reduce the outstanding level of public debt.
187. Deputy Joan Burton asked the Minister for Finance the total amount of the proceeds from the sale of the State's stake in Aer Lingus; and the use to which the proceeds of the sale were put. [13159/17]
Amharc ar fhreagraThe Connectivity Fund was established as a sub-fund of the Ireland Strategic Investment Fund (ISIF) to invest the €335 million proceeds from the sale of the State's shareholding in Aer Lingus with the aim of enabling and enhancing Ireland's physical, virtual and energy connectivity.
The ISIF has completed the first two investments from this fund with a combined value of €57m.
- ISIF announced a $25 million (c. €22 million) equity investment in Aqua Comms DAC, the operator of Ireland's first dedicated subsea fibre-optic network. The cable lands in Killala County Mayo and interconnects New York, Dublin and London. Aqua Comms is a provider of data connectivity and bandwidth infrastructure services for content providers, cloud-based networks, data centres, IT companies and the global media. Its network will be used by major multinational technology and telecoms companies to provide fast, secure data connections between Ireland, the US and UK and will enable the continued growth of the Irish digital economy.
- ISIF also rolled an existing (National Pensions Reserve Fund) commitment in daa plc's public bond, which was issued in 2008 (repayable in 2018), into a €35 million commitment in a new 2028 public bond issuance by daa, the operator of Dublin and Cork Airports. This continues ISIF's role as a long-term, strategic, domestic investor in daa. Given the nature of the underlying business of daa, and the fact that the new bond issuance provides the underpinning long-term financing for the company, the ISIF commitment to the 2028 bond is considered suited to inclusion under the Connectivity Fund.
Several other Connectivity Fund investment opportunities are currently being assessed under the ISIF's "double bottom line" mandate, which is to seek both commercial return and economic impact. These connectivity opportunities include potential investments in energy, air, sea and further data connectivity projects and businesses seeking to expand and enhance Ireland's international links.
188. Deputy Niamh Smyth asked the Minister for Finance if persons eligible for the help-to-buy scheme are paid in one lump sum by the Revenue Commissioners or on a phased basis through their tax; if so, over which period; and if he will make a statement on the matter. [13165/17]
Amharc ar fhreagraThe legislative provisions for the Help to Buy incentive are set out in section 477C of the Taxes Consolidation Act 1997 (TCA), as inserted by section 9 of the Finance Act 2016. The incentive applies for the period from 19 July 2016 to 31 December 2019.
I can confirm that a qualifying refund under Help to Buy is paid in one lump sum by Revenue. A first-time buyer or self-builder will need to apply and claim online on http://www.revenue.ie/en/tax/it/reliefs/htb/index.html. Claims are verified by either the purchaser's builder ("qualifying contractor") or their solicitor in the case of a self build, and once verified, the refund is paid.
189. Deputy Pearse Doherty asked the Minister for Finance his views on the fact that commercial property investors are predominately international REITs and equity funds and that prime office rents increased by 14% in the fourth quarter of 2016; if his Department conducted a risk analysis of a potential bubble in the commercial real estate sector; and if he will make a statement on the matter. [13190/17]
Amharc ar fhreagraAccording to market research published this week by Savills, commercial property investment in 2016 was dominated by institutional investors and real estate investment trusts (REITS), who accounted for approximately 80 per cent of total investment turnover.
Over the past two years, Ireland's commercial real estate market has been characterised by ongoing divestment by private equity holders who, having entered the market earlier in the price recovery cycle, are now experiencing yield compression and exiting their positions by re-trading properties to institutional investors who are willing to accept lower yields for prime assets. Savills reports that private equity firms' share of total turnover value has fallen from 53 per cent in 2012 to 12 per cent in 2016.
Overall, this change in composition of real estate dynamics marks a positive development in that it reflects a shift towards a longer-term focused investor base, rather than the highly yield-sensitive short-term private equity investment which characterised the landscape immediately post-crisis.
The continued rise in office rents reflects ongoing growth in economic activity and employment and the associated record level of office take-up over the last number of years. The growth in demand for office space and the increase in prime office rents has induced a significant pick-up in construction activity much of which is pre-funded or secured by forward-purchase agreements. According to CBRE, approximately 77,000 sq.m of office space was constructed in 2016, with a further 388,000 sq.m of office space currently under construction. This expansion in construction activity should help to alleviate some of the inflationary pressure in the office rental market. In addition, the strong granted planning pipeline indicates that the supply of office space has the potential to expand to meet growing demand over the next number of years.
I wish to assure the Deputy that my Department continues to monitor developments in the Commercial Real Estate market on an ongoing basis. As part of its financial stability mandate, the Central Bank also monitors development in the sector.
