Written Answers Nos. 94-113
94. Deputy Michael McGrath asked the Minister for Finance the number and names of portfolios that NAMA is considering for sale; the par debt and book debt that NAMA currently owns; the plans of NAMA to sell this debt; and if he will make a statement on the matter. [30693/17]
Amharc ar fhreagraI would firstly refer the Deputy to page 46 of NAMA's recently published 2016 Annual Report. The report contains a significant amount of information on NAMA's remaining loan book and upcoming plans. NAMA's 2016 Annual Report can be accessed via: https://www.nama.ie/about-us/publications/annual-reports/
As per page 46 of the 2016 NAMA Annual Report, the outstanding principal balance of NAMA’s loans and receivables portfolio at end-2016 was €28.4 billion. The corresponding carrying value attributed to these unpaid balances was €3.9 billion. The position as of end-Q1 2017 will be included in the Q1 Section 55 Accounts which will be published over the coming weeks.
I am advised by NAMA that it plans to launch the Project Lee portfolio sale later this year (see page 9 of the 2016 NAMA Annual Report). Project Lee is a portfolio of loans secured largely by commercial assets located in Cork.
I am advised that, on an ongoing basis, NAMA reviews options as to how best to maximise the financial return from its acquired loans and, in that context, it is possible that the NAMA Board may decide to offer other portfolios for sale in the future.
95. Deputy Michael McGrath asked the Minister for Finance the position regarding the Central Bank's inquiry into a building society (details supplied); the expected completion time of the inquiry; and if he will make a statement on the matter. [30694/17]
Amharc ar fhreagraUnder Part IIIC of the Central Bank Act 1942, the Central Bank may hold an inquiry to determine whether or not a financial service provider is committing or has committed a prescribed contravention. The Central Bank may also hold an inquiry to determine whether or not a person concerned in the management of a regulated financial service provider is participating or has participated in the commission of a prescribed contravention by the financial service provider.
Part IIIC of the Act sets out the overall framework for how Administrative Sanctions Procedure (ASP) Inquiries are to be carried out. The Bank has prescribed Inquiry Guidelines which set out the general procedure which it ordinarily follows at an ASP Inquiry (available on its website).
The Inquiry Members appointed to conduct an inquiry decide how an inquiry will proceed and the procedures to be followed in each case. The timetable in respect of an inquiry is therefore a matter for the Inquiry Members.
I am informed by the Central Bank that an Inquiry has commenced in connection with a building society and certain persons concerned in its management. It would not be appropriate for me to comment further at this time, as that Inquiry is still ongoing.
96. Deputy Michael McGrath asked the Minister for Finance when he expects the report on potential changes to the capital acquisition tax to facilitate the provision of solar farms on farms as agreed in budget 2017 to be complete; and if he will make a statement on the matter. [30695/17]
Amharc ar fhreagraArising from the agreement of the Minister at the Report Stage of the Finance Act, 2016 to consider the tax treatment of solar panels on farmland, an Interdepartmental Group was established to consider the issues involved. This work is ongoing and I expect the Group to report to me with its recommendations soon, which will allow me to consider the matter in the context of Budget 2018/Finance Bill 2017.
97. Deputy Michael McGrath asked the Minister for Finance his plans for the State's remaining share in a bank (details supplied) and other State assisted banks; and if he will make a statement on the matter. [30696/17]
Amharc ar fhreagraAs the Deputy will be aware, the State last week sold 25% of AIB's ordinary share capital at a price of €4.40 per share for consideration of almost €3 billion. The State also granted an additional over-allotment option over a further 3.75% of AIB's ordinary share capital as part of this transaction. This transaction was strongly supported by a broad range of international institutional investors with all of the top 15 investors being categorised as longer term investors and sovereign wealth funds.
Following the AIB IPO the State's remaining shareholding in the bank is in a 'lock-up' period of 180 days. This is standard market practice in an IPO. I would therefore expect no further sale of AIB shares in 2017. After this period, I and officials in my Department will continue to monitor the performance of the bank, its prospects, its share price and equity markets more broadly to determine the best route to retrieve the optimal return of value for the Irish taxpayer. Under the Programme for a Partnership Government any future sale of AIB shares contemplated before the end 2018 would need to be approved by the Government.
Similarly, I and my officials continue to monitor the performance of Permanent TSB and Bank of Ireland and plan for exit opportunities, however I have no immediate plans to sell any of the State's shares in these banks either at this time.
98. Deputy Michael McGrath asked the Minister for Finance the details on the OECD tax treaty; the multilateral instrument signed in June 2017; the details on its potential implications for taxpayers; the number of tax treaties in negotiation at EU or OECD level; the number of tax treaties currently in negotiation with other countries; the process followed to ensure that tax treaties are in Ireland's long-term best interests; the detail of engagement with outside groups; and if he will make a statement on the matter. [30697/17]
Amharc ar fhreagraIreland signed the Multilateral Instrument (commonly referred as to the MLI) on behalf of Ireland on June 7. Ireland was one of 76 countries that participated in the signing ceremony in Paris with 67 of those countries signing the MLI.
The purpose of the MLI is to enable existing tax treaties to be modified in order to implement the tax treaty-related measures that were agreed as part of the OECD Base Erosion and Profit Shifting (BEPS) project. The measures comprise minimum standards, to which all countries participating in the BEPS project committed, as well as optional best practices. At the signing ceremony in June, Ireland indicated its provisional approach to the options provided for in the MLI. My Department published a summary of this provisional approach which is available on the Department of Finance website. The full detail of Ireland's provisional approach has been published by the OECD, along with the provisional approach of each signatory country. Ireland will have to confirm its final binding approach to the options in the MLI when it is ratified in Irish law. It is intended that the first steps to ratify the Instrument would be taken as soon as possible with a view to completing the ratification process during 2018.
Ireland has 72 tax treaties in effect and the MLI will enable the majority of these treaties to be updated to ensure that they are compliant with the BEPS recommendations, without the need for separate bilateral negotiations for each treaty concerned. However, no treaty will be changed until both Ireland and the relevant treaty partner have each fully ratified the MLI under domestic law. Also, a provision of a treaty cannot be changed unless both treaty partners agree to the amendment by making matching MLI choices in relation to the provision. Because of this, the potential implications will vary from treaty to treaty. However, the principal MLI changes include:
- introducing general anti-avoidance clauses into tax treaties;
- preventing differences in countries’ tax laws being exploited by hybrid mismatch arrangements;
- new rules on how much presence a company must have in a country to create a taxable presence there; and
- allowing a taxpayer to seek mandatory binding arbitration if the two countries that are parties to a treaty cannot agree on how the treaty should be applied in the taxpayer’s particular case.
Some 50 of Ireland’s treaty partners signed the MLI on June 7 in Paris. Approximately 10 treaty partners are not yet members of the group that developed the MLI. Also, a small number of Ireland’s treaty partners have expressed a preference to implement the anti-BEPS minimum standards by way of bilateral protocol, instead of through the MLI. I am informed by Revenue that negotiations are ongoing with two OECD countries that are co-signatories of the MLI, to agree protocols to implement MLI measures for existing treaties, and that this number will rise if other treaty partners’ domestic ratification procedures require the agreement of a protocol.
Tax treaties are bilateral agreements which are negotiated between individual countries rather than being negotiated at OECD or EU level. Renegotiations of existing treaties with three OECD countries are underway. These general renegotiations may result in the implementation of anti-BEPS measures bilaterally, instead of through the MLI.
With regard to the extension of Ireland’s tax treaty network, a first round of negotiations has been held in 2017 with one European country and efforts to initiate negotiations with other countries are ongoing. Two other negotiations with non-European or OECD countries are at a very advanced stage. Additionally, Government approval has previously been granted to sign three additional new treaties which have not yet been signed. Finally, a new treaty with Kazakhstan was signed on 26 April 2017 but has not yet been ratified by the Oireachtas.
The basis for Ireland’s treaty negotiations is the Irish model treaty, which is based on the OECD model treaty but also includes provisions of particular relevance to Ireland’s interests. This Irish model is updated as necessary. The general approach to treaty negotiations is to work in a spirit of cooperation to build a treaty that is fair, workable in practice, and beneficial to both sides. Treaty negotiations are confidential and this limits the scope for the engagement of outside groups in the process. Notwithstanding this general limitation on engagement with outside groups, the publication of a new US Model Treaty enabled my Department to undertake a consultation process in 2016 in advance of the ongoing renegotiation of Ireland’s tax treaty with the United States.
99. Deputy Michael McGrath asked the Minister for Finance the detail of the different incentives offered by NAMA to developers; the number and value of incentives offered by NAMA to developers in each of the past five years and to date in 2017; and if he will make a statement on the matter. [30698/17]
Amharc ar fhreagraThe Deputy will be aware of my response to Parliamentary Question 246 of 20 June 2017 regarding the same topic. In that response I explained that NAMA is required, under Section 10 of the NAMA Act 2009, to obtain the best financial return from its acquired loans. I also explained in my previous response that, among the measures adopted to achieve this statutory objective, NAMA enters into arrangements with some co-operative debtors which involve measures to motivate debtors to maximise the return to NAMA from the workout of the assets controlled by these debtors. NAMA must operate as a commercial entity and I am advised that, in the absence of arrangements with debtors, the return achieved on the assets securing NAMA loans would fall short of the best achievable financial return required under Section 10.
I am advised by NAMA that, in return for concessions which improve NAMA’s return, arrangements agreed with debtors include compromises of personal guarantees, debt compromise, potential profit share arrangements and debt restructuring. The details of such arrangements vary according to the particular circumstances of each debtor connection and no two arrangements are the same. The Deputy will be aware that NAMA is prohibited under sections 99 and 202 of the NAMA Act from disclosing confidential debtor information, including information on debtor arrangements which could identify particular debtors. I am advised that concessions are conditional on the achievement of agreed milestones and on meeting stretch targets. In such cases, the debtor may share a small proportion of surplus proceeds. Such arrangements are particularly appropriate and necessary where facilities are non-recourse or where there is limited recourse.
Under arrangements agreed with debtors, the concessions granted to NAMA by debtors include charges over unencumbered assets, improvement in NAMA’s legal priority over charged assets, the perfection of legal security deficiencies by the debtor, cooperation with professional practitioners and the completion of development projects aimed at enhancing debt recovery. It is a matter of public record that, as part of the loan acquisition process, NAMA encountered difficulties with some of the legal documentation received from the participating institutions, including items of security not actually taken, guarantees not confirmed on the granting of new facilities and development loans with no security over work-in-progress or step-in rights. Other issues included defective land registry dealings and missing original documents (such as title). In many cases, the co-operation of debtors was required to ensure remediation of these issues.
I am advised by NAMA that such arrangements have been agreed with 34 debtor connections to date. It should be remembered that NAMA acquired the loans of almost 800 debtor connections and 5,000 borrowing entities from the participating institutions. I am further advised that NAMA remains in ongoing negotiation with at least 20 other debtor connections in relation to prospective arrangements, debtor concessions and the requisite cooperation which would enable NAMA to maximise debt recovery. It is not certain that agreement will be reached in all of these negotiations.
The fundamental principle underlying any arrangement is that NAMA’s return under the arrangement exceeds the return that would apply in the absence of the arrangement. I am advised that the adoption of agreed arrangements with debtors has been an important mechanism to enable NAMA to ensure ongoing debtor co-operation in cases where otherwise debtors would refuse to cooperate and would opt instead for an insolvency process which would ultimately yield a lower net return to NAMA, particularly when enforcement costs are taken into account. NAMA advise that many debtors would not have maintained their co-operation unless they had clarity as to the long-term benefit to them of that co-operation.
I am advised by NAMA that the information sought by the Deputy in relation to the number and value of incentives is confidential and that disclosure of this information would compromise NAMA’s negotiating position and thereby place it at a commercial disadvantage in its ongoing negotiations with debtors. This would ultimately be to the detriment of the financial return that NAMA could generate from the acquired loan portfolio. Under Section 202 (1) (d) of the NAMA Act 2009, ‘confidential information’ is defined as including ‘information the disclosure of which would tend to place NAMA, a NAMA group entity or the NTMA at a commercial disadvantage’.
100. Deputy Michael McGrath asked the Minister for Finance when he expects the liquidator of a company (details supplied) to complete its report on the estimate of the proportion of claims expected to be covered by the liquidation of the company; and if he will make a statement on the matter. [30699/17]
Amharc ar fhreagraI am advised by the Liquidator of Setanta that the actuarial report the Deputy is referring to is in the process of being commissioned. Consequently, the Liquidator does not currently have a timeline for its completion but he anticipates that he should have a clearer picture on this matter shortly.
This actuarial report will update the 2014 report carried out by Towers Watson which indicated that the Liquidator would not be in a position to meet more than 30% of claims out of the assets of the liquidation.
Notwithstanding the above, the Deputy should note that progress is being made on the payment of outstanding claims to Setanta policyholders. There are currently 324 claims - which have been validated by the State Claims Agency - ready for settlement and listed for inclusion in the next application for payment from the Insurance Compensation Fund. We are awaiting a High Court date for this application.
101. Deputy Michael McGrath asked the Minister for Finance the status of initiatives to protect the family home and to introduce additional long-term solutions for mortgage arrears cases; and if he will make a statement on the matter. [30700/17]
Amharc ar fhreagraThe Deputy will be aware that responsibility for initiatives to protect the family home is spread across several Government Departments and therefore, I will confine my response to the issues that come under my direct responsibility.
Within the remit of the Central Bank’s responsibilities for safeguarding stability and protecting consumers, its approach to mortgage arrears resolution is focused on ensuring the fair treatment of borrowers through a strong consumer protection framework and ensuring that lenders have appropriate arrears resolution strategies and operations in place.
The Code of Conduct on Mortgage Arrears is a key part of the Central Bank’s Consumer Protection Framework in this regard. Banks, retail credit firms and credit servicing firms servicing loans on behalf of unregulated loan owners are all required to comply with the CCMA. The overriding objective of the CCMA is to ensure the fair and transparent treatment of consumers in mortgage arrears or pre-arrears, and that due regard is had to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits.
Last year my predecessor 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 subsequent report is published on the Department of Finance website. The assessment found a comprehensive range of available restructuring solutions being offered and delivered by both bank and non-bank entities and noted considerable progress in addressing mortgage arrears since the peak. The Central Bank noted further that there is strong evidence that both banks and non-banks look to exhaust available restructure options before moving to the legal process. In addition, the Central Bank considered the range of restructures offered by banks to be broadly appropriate in balancing consumer protection imperatives, and maintaining a mortgage market for all borrowers, and a functioning banking system.
The Deputy will also be aware that the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 has been enacted to fill the consumer protection gap where loans were sold by the original lender to an unregulated firm. This legislation ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale.
Latest Central Bank Residential Mortgage Arrears Data for Q1-2017 indicates that mortgages in arrears for more than 720 days continued to decline for the seventh consecutive quarter and there has been a decline of 7.9 per cent in this maturity cohort in the past year. Central Bank data also shows a decline in short-term restructure arrangements and increases in longer-term arrangements such as split mortgages.
This indicates that where borrowers actively engage with their lender under the CCMA, it is more likely that an equitable arrangement will be found and that the borrower will be able to remain in their family home.
102. Deputy Michael McGrath asked the Minister for Finance the status of the provision of greater protection for mortgage holders, tenants and SMEs whose loans have been and will be transferred or sold to unregulated entities; and if he will make a statement on the matter. [30701/17]
Amharc ar fhreagraAs the Deputy will be aware, the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was enacted in July 2015. It was introduced by the previous Government to fill the consumer protection gap where loans were sold by the original lender to an unregulated firm. The 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'.
Under the Act, purchasers of loan books must either be regulated by the Central Bank themselves or else the loans must be serviced by a credit servicing firm that is regulated by the Central Bank. The significant point is that the regulation is focussed at the point of contact with the customer. Therefore 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, 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. It is also 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.
A register of Credit Servicing Firms authorised or transitionally authorised by the Central Bank is available on their website at http://registers.centralbank.ie/DownloadsPage.aspx.
The Central Bank of Ireland’s SME Lending Regulations (the Regulations) came into effect and apply to regulated entities from 1 July last, except for credit unions who are required to comply since 1 January 2017. The Regulations aim to strengthen protections for SMEs from the existing SME Code in place, while also facilitating access to credit by introducing specific new additional requirements that regulated lenders must comply with.
The Regulations introduce specific requirements for regulated lenders (and credit servicing firms where relevant), including:
- Giving SME borrowers greater transparency around the application process;
- Providing SME borrowers with reasons for declining credit, in writing, that are specific to their application;
- Providing greater protections for guarantors;
- Contacting SME borrowers who have been in arrears for 15 working days;
- Warning SME borrowers if they are in danger of being classified as not co-operating; and
- Expanding the grounds for appeal and setting up an internal appeals panel.
The Central Bank has published a short guide for SMEs and guarantors on the protections available for them under the Regulations which is available on the Central Bank website.
The SME Regulations apply to all regulated financial services providers providing credit to SMEs in Ireland. By virtue of the Credit Servicing Act, this means these protections also apply where the loan was granted by a regulated entity but has since been transferred to an unregulated entity, and is being serviced by a credit servicing firm.
I would highlight that tenant relations are governed by multiple pieces of legislation mainly under the aegis of my colleague, the Minister for Housing, Planning, Community and Local Government.
My Department will continue to keep all relevant legislation under review in order to ensure that borrowers whose loans have been sold are properly protected and do not lose any protections that they previously enjoyed. In addition, the Department of Finance expects that the Central Bank, as regulator of credit servicing firms, will be vigilant in this area and raise any specific instances where they have found consumers have not had their protections upheld or that their positions have been disadvantaged.
103. Deputy Michael McGrath asked the Minister for Finance his views on whether Ireland will be in breach of the fiscal rules in respect of the structural rule and the expenditure benchmark in 2017; his further views on whether sanctions will be brought against Ireland; and if he will make a statement on the matter. [30702/17]
Amharc ar fhreagraThe two key pillars of the Preventive Arm of the Stability and Growth Pact (SGP) are the Balanced Budget Rule, which uses the structural balance and the expenditure benchmark. A deviation in excess of 0.5 per cent of GDP from either or both of the rules may lead to a warning of a significant deviation from the European Commission following an overall assessment that takes all relevant factors into account. If a warning of a significant deviation is made to Ireland by the European Commission, then the Government has two months to prepare a corrective action plan and present it to the Dáil. It would only be in the event that Ireland takes no effective action to correct the significant deviation in line with Council recommendations that the issue of sanctions arise in the form of an interest bearing deposit of up to 0.2 per cent of GDP. Importantly, a warning of a significant deviation requires it to be an observed outcome, i.e. it must be ex-post. This means that any warning in relation to 2017 or 2016 and 2017 taken together could only be made following the assessment of the 2018 Stability Update Programme that will be submitted at the end of April 2018.
The European Commission's Spring Economic Forecasts project a structural balance improvement of 0.6 per cent of GDP in 2017, which is the required level of improvement. Taking 2016 and 2017 together, the Commission forecasts a risk of some deviation but well below the level of a significant deviation. My Department forecasts a structural improvement of 0.3 per cent in 2017, which does not constitute a significant deviation. Importantly, my Department estimates that Ireland remains on track to achieve our medium-term objective (MTO) of a structural deficit of 0.5 per cent of GDP in 2018. Achievement of the MTO represents an important milestone in ensuring the sustainability of the public finances.
With regard to the expenditure benchmark, my Department estimated that there would be a deviation in 2017 at Budget time last October due to the increase in the EU Budget contribution. Based on the forecasts in the SPU, this projected deviation has increased to c.€450 million (0.16 per cent of GDP) for a number of reasons. The key one is that the expenditure outturn for 2017 came in lower than projected in Budget 2017. Taking 2016 and 2017 together, my Department is forecasting a small deviation (c.0.1 per cent of GDP).
On the other hand, the European Commission is forecasting a risk of a significant deviation under the expenditure benchmark taking 2016 and 2017 together. The background to this is that the commission is retrospectively applying an amendment to assessment of compliance that was agreed in late 2016. This new methodology will take one-offs into account in the assessment process. Retrospective application removes the AIB share transaction in 2015 from the assessment, thus changing the 2016 assessment from a positive deviation to a negative deviation, albeit not a significant one.
In my view, this methodological change cannot be retrospectively applied and should not affect the 2016/2017 average compliance. The Commission have admitted that there may be legal uncertainty with the approach taken in its assessment methodology and my officials continue to engage bilaterally with the Commission on this issue.
104. Deputy Michael McGrath asked the Minister for Finance the expected timeframe for the acquisition of a sum relating to a case (details supplied). [30709/17]
Amharc ar fhreagra105. Deputy Michael McGrath asked the Minister for Finance the status of the ownership of interest accumulating from the escrow account established from a judgment (details supplied). [30710/17]
Amharc ar fhreagra106. Deputy Michael McGrath asked the Minister for Finance if the State has secured legal immunity in the operation of the escrow account arising from a case (details supplied). [30711/17]
Amharc ar fhreagraI propose to take Questions Nos. 104 to 106, inclusive, together.
Notwithstanding the appeal in the Apple State Aid case, the Government is committed to complying with the binding legal obligations the Commission’s Final Decision places on Ireland. Apple therefore must be deprived of the benefit of the alleged aid.
The sums will be placed into an escrow fund with the proceeds being released only when there has been a final determination in the European Courts over the validity of the Commission’s Decision. Given the scale and bespoke nature of such a fund, the precise terms are still being negotiated and are subject to confidential and commercially sensitive deliberations.
The Government is fully committed to ensuring that recovery takes place without delay and have committed significant resources to this matter. Irish officials are continuing this intensive work to ensure that the State complies with all our recovery obligations as soon as possible, and remain in regular contact with the Commission and Apple.
107. Deputy Mick Wallace asked the Minister for Finance further to Parliamentary Questions Nos. 15 and 31 of 18 May 2017, the reason Project Shift was not discussed at Northern Ireland advisory committee meetings; if a person (details supplied) advised the debtor regarding the project; and if he will make a statement on the matter. [30742/17]
Amharc ar fhreagraI am advised by NAMA that, as the loans secured by the Project Shift properties were included in the Project Eagle loan portfolio, it is likely that the recently established Commission of Investigation, which is under the remit of the Department of An Taoiseach, will consider that Project Shift falls within its terms of reference. On that basis, I am advised by NAMA that it considers it prudent not to comment further on these matters.
I am advised by NAMA that the Agency will co-operate fully with the work of the Commission of Investigation and in the course of that work, NAMA expects to provide the Commission with materials in relation to Project Shift and to address fully any questions the Commission may have in relation to Project Shift.
108. Deputy Niall Collins asked the Minister for Finance if he is satisfied that anti-bullying policies are in place in his Department and each State body and agency under his aegis; if such polices are being implemented effectively; the amount paid in compensation for bullying claims in each of the past five years in his Department and each State body and agency under his aegis in tabular form; the action that has been taken to ensure such cases do not arise in future; and if he will make a statement on the matter. [30751/17]
Amharc ar fhreagraI am satisfied that an anti-bullying policy is in place in the Department of Finance and Bodies under the Aegis of my Department. The Department is guided by the Dignity at Work (the anti-bullying, harassment and sexual harassment) Policy for the Civil Service which was revised by the Department of Public Expenditure and Reform and came into effect in February 2015. This Policy aims to promote respect, dignity, safety and equality in the workplace. It also provides a step by step process for engaging with a complaint made under the Dignity at Work Policy.
The Dignity at Work Policy document is available to all staff and a short summary document on the main features of the policy were issued to all staff and is available on the HR intranet site. There is a module on our Induction training which covers Dignity at Work, and as part of our Governance Framework, there is a common understanding and agreement of organisational values of: integrity, objectivity, impartiality, openness, accountability, and respect and their underlying behaviours under the headings ‘In our Dealings Externally, In our Dealings Internally, In our Dealings with Staff, Constantly Learn, Develop and Improve’ as foundations to a unifying culture for the Department.
The Department is also duty bound under common law as part of the Safety, Health and Welfare at Work Act 2005 to prevent bullying and provide a workplace free from psychosocial hazards. There are clear legal obligations under the Employment Equality Acts 1998-2015 which are encompassed in the Dignity at Work Policy 2015. Through engagement with staff, the Department has identified that maintaining wellness and wellbeing, both physical and mental, has been seen as a positive contributing factor to attendance, engagement and performance. The Department has run a number of innovative learning initiatives in the area of Health and Safety and physical and mental wellness over the past few years. The goal of these initiatives is to create a more engaged workforce, work towards positive attendance management processes and satisfy Health and Safety legislation.
During the last five years there has been one case where an amount was paid in compensation for a bullying claim within my Department. There is a legal obligation not to disclose the amount paid in compensation due to a Confidentiality Agreement that prohibits disclosure in relation to the Terms of Settlement.
The following is a table detailing the replies from the Bodies under my Aegis.
|
Body |
Anti-Bullying Policies in place (Y/N) |
Anti-Bullying Policies implemented effectively (Y/N) |
Amount paid in compensation for bullying claims in each of the past five years |
Action taken to ensure such cases do not arise in future |
|
C&AGs |
Y |
Y |
2012: Nil 2013:Nil 2014:Nil 2015:Nil 2016:Nil 2017 (YTD) Nil |
N/A |
|
Central Bank of Ireland |
Y |
Y |
2012: Nil 2013: Nil 2014: Nil 2015: Nil 2016: Nil 2017 (YTD): Nil |
N/A |
|
Credit Reviewer |
Y* |
Y* |
2012: Nil 2013: Nil 2014: Nil 2015: Nil 2016: Nil 2017 (YTD):Nil |
*Credit Review Office staff are seconded employees of Enterprise Ireland whose anti bullying policy is incorporated in their Protection of Dignity at Work policy. |
|
Credit Union Advisory Committee |
As CUAC is a committee of only 3 members set up to advise the Minister it does not have an anti-bullying policy |
|||
|
Credit Union Restructuring Board |
Y |
Y |
2012:NIl 2013:-NIl 2014:NIl 2015:NIl 2016:Nil 2017 (YTD):Nil |
Rebo is been wind-down at present with only 2 staff members remaining both of whom will finish up at end of July following the dissolution of ReBo. |
|
Disabled Drivers Medical Board of Appeal |
2012: 2013: 2014: 2015: 2016: 2017 (YTD): |
Nil Response for DDMBA |
||
|
Financial Services Ombudsman Bureau |
Y |
Y |
2012: 0 2013: 0 2014: 0 2015: 0 2016: 0 2017 (YTD): 0 |
|
|
Financial Services Ombudsman Council |
n/a |
n/a |
2012: 2013: 2014: 2015: 2016: 2017 (YTD): |
|
|
Investor Compensation Company Limited |
Y[1] |
Y |
2012: 0 2013: 0 2014: 0 2015: 0 2016: 0 2017 (YTD): 0 |
N/A |
|
Irish Bank Resolution Corporation |
Y |
Y |
2013: Zero 2014: Zero 2015: Zero 2016: Zero 2017 (YTD): Zero Note: The information provided is for the period from 2013 to date. Information prior to the appointment of the Special Liquidator in 2013 is not readily available and the compilation of this information would incur a significant expense given that all legacy systems are no longer operational. |
N/A |
|
Irish Financial Services Appeals Tribunal |
N - This is a nil reply as IFSAT has no employees |
N/A |
2012: N/A 2013: N/A 2014: N/A 2015: N/A 2016: N/A 2017 (YTD): N/A |
N/A |
|
Irish Fiscal Advisory Council |
2012: 2013: 2014: 2015: 2016: 2017 (YTD): |
|||
|
National Asset Management Agency |
See NTMA response |
2012: 2013: 2014: 2015: 2016: 2017 (YTD): |
||
|
National Treasury Management Agency * |
Y |
Y |
2012: 0.00 2013: 0.00 2014: 0.00 2015: 0.00 2016: 0.00 2017 (YTD): 0.00 |
Policy in place |
|
Tax Appeals Commissioner |
Yes |
Yes |
2012: 2013: 2014: 2015: 2016: 2017 (YTD): |
The Tax Appeals Commission is governed by rules, policies and procedures including, inter alia, the Civil Service Dignity at Work policy and the Civil Service Code of Standards and Behaviour. As such, these rules and policies are the Commissions advisory platform in relation to bullying. Furthermore, as part of the roll out of updated governance procedures within the Commission, it currently seeking an external Human Resource function to be carried out by a government Department or agency to supplement its day to day management of HR issues. This external HR function will ensure best practice and allow for independence should issues arise. The Commission intends to review and update, where necessary, its procedures including those in relation to bullying during this process. |
|
Office of the Revenue Commissioners |
Y |
Y |
2012: 0 2013: 0 2014: 0 2015: 0 2016: 0 2017 (YTD): 0 |
Not applicable |
|
Social Finance Foundation |
Y |
Y |
2012: Nil 2013: Nil 2014: Nil 2015: Nil 2016: Nil 2017 (YTD): Nil |
Ongoing management |
|
Strategic Banking Corporation of Ireland State Board |
2012: 2013: 2014: 2015: 2016: 2017 (YTD): |
We have been advised that the NTMA will respond to this PQ on behalf of the SBCI. |
[1] The ICCL response will be aligned with the Central Bank of Ireland response insofar as ICCL staff are CBI staff subject to the CBI policies. The ICCL have advised that they are satisfied that the relevant policy is in place, effective, and that ICCL has never paid any compensation in relation to Bullying or Harassment.
109. Deputy Fiona O'Loughlin asked the Minister for Finance his views on whether financial institutions are providing sufficient support and guidance to those SMEs that have found themselves in financial difficulty; and if he will make a statement on the matter. [30759/17]
Amharc ar fhreagraThe Deputy may be aware that the Central Bank is proactively regulating the financial system and has issued regulations aimed at protecting SMEs. Following a review in 2015 of the Central Bank Code of Conduct for Business Lending to Small and Medium Sized Enterprises, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 were made. They came into operation for regulated lenders (other than credit unions) on 1 July 2016 and, in the case of credit unions, on 1 January 2017.
The aim of the Code and these Regulations is to facilitate access to credit, promote fairness and transparency, and provide a framework for dealing with financially difficult cases. These revised SME Regulations introduce specific requirements for regulated lenders, including:
- greater transparency for borrowers around the application process;
- contacting SME borrowers who have been in arrears for 15 working days;
- reasons for decline that are specific to an SME borrower’s application;
- greater protections for guarantors;
- a warning for SME borrowers who are in danger of being classified as not co-operating;
- expanded grounds for appeal.
Under these SME Regulations, regulated financial services firms must also have a complaints handling procedure in place.
The Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 addresses the procedures for dealing with arrears, sets out policy for financial difficulties, provision of standard information for borrowers in financial difficulties and how to communicate with borrowers in financial difficulties for micro and small enterprises in Part 2 and for Medium enterprises in Part 3 of the SME Regulations. The full SME Regulations can be found on the Central Bank website.
The Government also remains committed to the SME sector, as reflected in the Programme for a Partnership Government, and sees it as a key engine of ongoing economic growth. Consequently, my Department and the Credit Review Office, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit on both a macro and sectoral basis in order to ensure that sufficient access to finance is available to facilitate participants in the SME sector to reach their full potential in terms of growth and employment generation. In this context, the Action Plan for Jobs 2017 includes a dedicated chapter and associated integrated set of actions to support the financing for growth in the SME sector.
110. Deputy Fiona O'Loughlin asked the Minister for Finance the guidance which is given to customers of financial institutions when a debt is being sold on; and if he will make a statement on the matter. [30760/17]
Amharc ar fhreagraAs the Deputy may be aware, 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. Specifically, a lender must 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 requires that the regulated lender also notify the consumer of the regulated entity that will be ‘servicing’ the loan for the unregulated entity.
In the event that there is a change in the credit servicing firm, the existing credit servicing 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 Code.
It is also 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.
111. Deputy Clare Daly asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 383 of 20 June 2017, if he will provide the actuarial transfer value tables for the public sector transfer network as referenced. [30547/17]
Amharc ar fhreagraThe actuarial tables currently in use for calculating transfer values via the Public Service Transfer Network (PSTN) are as follows. These tables are subject to review periodically.
The tables are for use in calculating the values of retirement benefits included on the information forms. They should not be used in cases where a transfer value falls to be paid on foot of a Pension Adjustment Order (e.g. a case where the beneficiary spouse of an order on member’s pension dies while the member is in active service). Such cases should be referred to the Department of Public Expenditure and Reform.
INFORMATION REQUIRED TO DO AN ACTUARIAL VALUATION
1. date of birth of the member
2. date of valuation – the date chosen by the trustees and used in the provision of information on the information form unless the valuation is done on foot of a court order which specifies a particular date
3. annual pension on the date of valuation - see 2 above
4. amount of lump sum – not required in the case of a pensioner – on the date of valuation - see 2 above
5. annual spouse’s pension on date of valuation - see 2 above
How to calculate an actuarial valuation
- Calculate the age last birthday
- Using this age, look up the tables for the three factors – pension, lump sum (if not already paid) and spouse’s pension. Use Table 1 to calculate the valuation in cases of members (whether serving or former members) with a preserved pension age of 60, Table 2 in cases of members (whether serving or former members) with a preserved pension age of 65 and Table 3 in cases where payment of pension has already commenced
- Multiply each factor by the appropriate benefit amount shown in the Table
- The sum of the relevant amounts is the actuarial valuation.
Table 1
Serving employees with a preservation age of 60
Value of Benefit of € Per Annum
|
age last birthday |
main pension |
lump sum |
spouse’s pension |
|
25 |
8.95 |
0.51 |
2.38 |
|
26 |
9.13 |
0.52 |
2.42 |
|
27 |
9.32 |
0.53 |
2.45 |
|
28 |
9.51 |
0.54 |
2.49 |
|
29 |
9.70 |
0.55 |
2.54 |
|
30 |
9.90 |
0.56 |
2.58 |
|
31 |
10.10 |
0.57 |
2.62 |
|
32 |
10.31 |
0.58 |
2.66 |
|
33 |
10.51 |
0.59 |
2.71 |
|
34 |
10.73 |
0.60 |
2.75 |
|
35 |
10.95 |
0.61 |
2.80 |
|
36 |
11.17 |
0.63 |
2.85 |
|
37 |
11.40 |
0.64 |
2.89 |
|
38 |
11.63 |
0.65 |
2.94 |
|
39 |
11.87 |
0.66 |
2.99 |
|
40 |
12.11 |
0.68 |
3.04 |
|
41 |
12.36 |
0.69 |
3.08 |
|
42 |
12.62 |
0.70 |
3.13 |
|
43 |
12.88 |
0.72 |
3.18 |
|
44 |
13.15 |
0.73 |
3.23 |
|
45 |
13.42 |
0.75 |
3.27 |
|
46 |
13.70 |
0.76 |
3.32 |
|
47 |
13.99 |
0.78 |
3.36 |
|
48 |
14.29 |
0.79 |
3.41 |
|
49 |
14.59 |
0.81 |
3.45 |
|
50 |
14.91 |
0.82 |
3.49 |
|
51 |
15.23 |
0.84 |
3.53 |
|
52 |
15.57 |
0.86 |
3.57 |
|
53 |
15.91 |
0.87 |
3.60 |
|
54 |
16.27 |
0.89 |
3.64 |
|
55 |
16.64 |
0.91 |
3.67 |
|
56 |
17.02 |
0.92 |
3.70 |
|
57 |
17.42 |
0.94 |
3.73 |
|
58 |
17.83 |
0.96 |
3.75 |
|
59 |
18.26 |
0.98 |
3.77 |
Table 2
Serving Employees with a preservation age of 65
value of benefit of €1 per annum
|
age last birthday |
main pension |
lump sum |
spouse’s pension |
|
25 |
6.71 |
0.46 |
2.38 |
|
26 |
6.84 |
0.47 |
2.42 |
|
27 |
6.98 |
0.48 |
2.45 |
|
28 |
7.13 |
0.49 |
2.49 |
|
29 |
7.27 |
0.50 |
2.53 |
|
30 |
7.42 |
0.51 |
2.58 |
|
31 |
7.57 |
0.52 |
2.62 |
|
32 |
7.72 |
0.53 |
2.66 |
|
33 |
7.88 |
0.54 |
2.71 |
|
34 |
8.04 |
0.55 |
2.75 |
|
35 |
8.20 |
0.56 |
2.80 |
|
36 |
8.37 |
0.57 |
2.85 |
|
37 |
8.54 |
0.58 |
2.89 |
|
38 |
8.72 |
0.59 |
2.94 |
|
39 |
8.89 |
0.60 |
2.99 |
|
40 |
9.08 |
0.62 |
3.04 |
|
41 |
9.26 |
0.63 |
3.08 |
|
42 |
9.45 |
0.64 |
3.13 |
|
43 |
9.65 |
0.65 |
3.18 |
|
44 |
9.85 |
0.67 |
3.23 |
|
45 |
10.06 |
0.68 |
3.27 |
|
46 |
10.27 |
0.69 |
3.32 |
|
47 |
10.48 |
0.71 |
3.36 |
|
48 |
10.71 |
0.72 |
3.41 |
|
49 |
10.94 |
0.73 |
3.45 |
|
50 |
11.17 |
0.75 |
3.49 |
|
51 |
11.41 |
0.76 |
3.53 |
|
52 |
11.66 |
0.78 |
3.57 |
|
53 |
11.92 |
0.79 |
3.60 |
|
54 |
12.19 |
0.81 |
3.64 |
|
55 |
12.47 |
0.82 |
3.67 |
|
56 |
12.75 |
0.84 |
3.70 |
|
57 |
13.05 |
0.86 |
3.73 |
|
58 |
13.36 |
0.87 |
3.75 |
|
59 |
13.68 |
0.89 |
3.77 |
|
60 |
14.02 |
0.91 |
3.79 |
|
61 |
14.37 |
0.92 |
3.80 |
|
62 |
14.74 |
0.94 |
3.81 |
|
63 |
15.13 |
0.96 |
3.82 |
|
64 |
15.54 |
0.98 |
3.83 |
Table 3
Pension in course of payment
value of benefit of €1 per annum
|
age next birthday |
main pension |
spouse’s pension |
|
25 |
33.96 |
2.38 |
|
26 |
33.64 |
2.42 |
|
27 |
33.32 |
2.45 |
|
28 |
32.98 |
2.49 |
|
29 |
32.64 |
2.54 |
|
30 |
32.29 |
2.58 |
|
31 |
31.94 |
2.62 |
|
32 |
31.58 |
2.66 |
|
33 |
31.21 |
2.71 |
|
34 |
30.84 |
2.75 |
|
35 |
30.45 |
2.80 |
|
36 |
30.06 |
2.85 |
|
37 |
29.67 |
2.89 |
|
38 |
29.26 |
2.94 |
|
39 |
28.85 |
2.99 |
|
40 |
28.43 |
3.04 |
|
41 |
28.01 |
3.08 |
|
42 |
27.58 |
3.13 |
|
43 |
27.14 |
3.18 |
|
44 |
26.69 |
3.23 |
|
45 |
26.24 |
3.27 |
|
46 |
25.78 |
3.32 |
|
47 |
25.31 |
3.36 |
|
48 |
24.84 |
3.41 |
|
49 |
24.36 |
3.45 |
|
50 |
23.88 |
3.49 |
|
51 |
23.38 |
3.53 |
|
52 |
22.89 |
3.57 |
|
53 |
22.38 |
3.60 |
|
54 |
21.87 |
3.64 |
|
55 |
21.36 |
3.67 |
|
56 |
20.84 |
3.70 |
|
57 |
20.31 |
3.73 |
|
58 |
19.79 |
3.75 |
|
59 |
19.25 |
3.77 |
|
60 |
18.71 |
3.79 |
|
61 |
18.17 |
3.80 |
|
62 |
17.63 |
3.82 |
|
63 |
17.08 |
3.82 |
|
64 |
16.53 |
3.83 |
112. Deputy Thomas Byrne asked the Minister for Public Expenditure and Reform the position regarding the awarding of a tender (details supplied). [30554/17]
Amharc ar fhreagraThe cafe concession at the Bru na Boinne visitor centre will be put out to public tender in the coming few months.
113. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if he is satisfied that anti-bullying policies in place in his Department and linked Civil Service offices are being implemented effectively; the amount paid in compensation for bullying claims in each of the past five years; the action taken to ensure such cases do not arise in future; and if he will make a statement on the matter. [30717/17]
Amharc ar fhreagraIn response to the Deputy’s question, my Department and the bodies under its aegis have anti-bullying policies in place in accordance with the Civil Service Dignity at Work policy.
My Department is committed to promoting respect, dignity, safety and equality in our workplace. The Dignity at Work policy is accessible to all staff and provides awareness regarding the steps which individuals may take if they believe that they have been bullied, harassed or sexually harassed. The policies and procedures are subject to regular review to ensure best practice continues to be adhered to and to safeguard against such cases arising in the future.
No payments have been made in the past five years in compensation for bullying claims.
The Office of Public Works have made payments totalling €4,100 over the last five years to compensate individuals for delays in the processing of complaints under the anti-bullying policy “A Positive Working Environment”.
