Written Answers Nos. 62-81
62. Deputy Michael McGrath asked the Tánaiste and Minister for Business, Enterprise and Innovation the staffing levels at the Irish Auditing and Accounting Supervisory Authority; if she is satisfied with the levels of staffing; if the authority is in a position to fulfil its functions effectively with existing resources; and if she will make a statement on the matter. [49815/17]
Amharc ar fhreagraThe Irish Auditing and Accounting Supervisory Authority (IAASA) currently has an approved staff complement of 43. At present, 24 staff are in place, with recruitment of additional staff underway and plans to commence a further recruitment campaign. Through these recruitment campaigns, the Authority is working towards having a full staff complement in situ at the earliest opportunity.
The Authority, in common with many other State organisations, faces significant challenges in the recruitment of high quality professional staff to deliver on its remit of supervising and promoting high quality financial reporting, auditing and effective regulation of the accounting profession.
IAASA has the necessary budget to meet all costs associated with the functions conferred on the Authority.
63. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation when the Second Stage of the Industrial Development (Amendment) Bill as referenced in the autumn legislative programme for 2017 is due to take place. [49827/17]
Amharc ar fhreagraThe draft heads of the Industrial Development (Amendment) Bill were approved by Government last year. The Joint Oireachtas Committee on Business, Enterprise and Innovation subsequently determined that pre-legislative scrutiny was not required.
My Department has since been working closely with the Office of the Parliamentary Counsel on this legislation. The draft bill is now close to finalisation and I expect that it will be published in December.
64. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation if the IDA collates feedback from prospective clients following site visits; if commonalities in feedback regarding site visits are outlined in annual published reports; and if so, the name of such reports. [49828/17]
Amharc ar fhreagraI understand that IDA Ireland does collate feedback following site visits from potential clients. While this is analysed and commonalities are assessed for internal Agency use, it is commercially sensitive and is not made publicly available. However, this analysis does inform IDA Ireland’s understanding of what attracts foreign direct investment (FDI) to Ireland and this is reflected in the Agency’s current strategy ‘Winning: Foreign Direct Investment 2015-2019’ and in its FDI marketing programme.
Whilst site visits can be a useful indicator of new investment interest, they do not necessarily reflect the FDI potential of any given area. It should be noted, in this context, that at least 70% of investment comes from existing IDA clients.
Determining which particular sites may be attractive to a client depends on the particular requirements of the firm concerned. Factors that are habitually important to overseas investors include the suitability of local infrastructure, the proximity of transport hubs and the availability of skilled talent. Multinational companies also frequently seek to base themselves as close as possible to businesses operating in the same industry.
65. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the amount of spending from the IDA's capital budget spent on market analysis of property solutions in each of the years 2012 to 2016 and to date in 2017, in tabular form. [49830/17]
Amharc ar fhreagraThe study to which the Deputy refers is the only market analysis report commissioned by IDA Ireland and paid from the Agency's capital budget from 2012 to date. For reasons of commercial sensitivity, however, IDA Ireland are unable to disclose the amount spent on this report as this would adversely impact the competitiveness of any tender process for similar work in the future.
66. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation when the research study commissioned by her Department, Sectoral Implications Arising from Brexit: Most Exposed Sectors, is due to be completed and published. [49832/17]
Amharc ar fhreagraMy Department is undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the United Kingdom being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy, at firm-level, as well as informing the ongoing negotiating process. The research complements and supplements the extensive work underway across Government.
The analysis is due to be concluded at the end of this year and has already informed internal policy deliberations including the current review of Enterprise 2025 and other activities. Given the confidential nature of the firm level responses and its purpose to inform, amongst other areas, Ireland's approach to negotiations, we will be considering how best to disseminate the general findings of benefit to business in their preparations for Brexit.
67. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation when the research study commissioned by her Department, Strategic Implications Arising from EU-UK Trading Patterns, is due to be completed and published. [49833/17]
Amharc ar fhreagraAs the Deputy will be aware, the major study examining the Strategic Implications arising from EU-UK Trading Patterns is underway and will provide an evidence base on key trade and investment questions to inform Ireland’s position as part of the wider negotiation on the UK’s future relationship with the EU. Using a computable general equilibrium model to quantify new barriers to trade in goods and services which might emerge as a result of Brexit, this study will:
- Quantify impact of seven possible Brexit outcomes scenarios on trade and investment – the impact of these outcomes on metrics such as GDP and employment will be considered, and analysis of both medium and long term impacts will be examined; and
- Provide in-depth analysis of key sectors. The study will decompose the potential trade and investment impacts for key sectors and in each scenario identify which elements contribute to the results (i.e. tariffs, non-tariff barriers, transit costs, other trade costs), leading to sector-by-sector understanding of solutions.
The project is due to be completed by end 2017. The study will be part of the deliberate process and key findings will be made available in due course.
68. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the status of the latest Mercosur trade talks; and her plans to ensure that Irish farmers are protected and that beef does not form part of the final deal. [49834/17]
Amharc ar fhreagraThe next round of talks in the EU - Mercosur Free Trade Agreement (FTA) is scheduled to take place on the 29th November to 5th December in Brussels and a final round of high-level talks is expected to take place the week beginning 6th December. Negotiations are led by the EU Commission on behalf of Member States.
An EU-Mercosur FTA would be the EU’s largest trade deal to date, and is four times the size of the trade agreement with Japan. It aims to eliminate trade tariffs between the EU and the Mercosur region. Irish exporters are currently subject to trade tariffs, barriers and restrictions, when exporting to Mercosur, while imports from Mercosur, particularly in Agriculture, are currently subject to high tariffs. The proposed FTA should make exports from Ireland more attractive and potentially increase demand for Irish products.
Within the region, Brazil is Ireland’s main trading partner with total exports from Ireland of €715 million and total imports of €634 million in 2014. Brazil has been highlighted as a ‘High Growth Market’ in the Enterprise Ireland Plan 2016, with Enterprise Ireland client’s companies’ exports value increasing by 84% from 2012 to 2014. In 2014, Ireland exported in excess of €950 million to Mercosur countries, with services representing approximately 60% of the total exports and Chemicals accounting for 49% of Irish exports to Mercosur. 132 Enterprise Ireland client companies exported to Mercosur in 2014. Year on year growth of exports to the region from 2013-2014 increased by 25%.
On the other hand, Ireland has strong concerns in relation to agriculture, especially the impact that these negotiations present to the EU beef sector. While all Free Trade Agreements include agriculture tariffs, agricultural market access and TRQs (Tariff Rate Quotas), TRQs provided under such agreements are not always fully utilised by our trading partners. Equally, most Member States tend to have sensitivities in relation to certain goods or services to be comprehended under an FTA.
Ireland has continued to highlight the cumulative impact of agricultural market access in relation to all trade agreements. We have done this through engagement with the Trade Policy Committee in Brussels, as well as joining with other Member States in formally writing to the Commission outlining our concerns. Both I and my colleague Minister Creed have also raised the matter in various fora.
Overall, Ireland remains fully committed to this negotiation, especially in view of the important economic and political gains expected for both sides from a comprehensive, ambitious and balanced EU-Mercosur Association Agreement. However any TRQ offered must be structured - in terms of its size, composition and the application of in-quota tariff rates - in a way that mitigates the potential impact of a Mercosur deal on the EU beef sector.
As negotiations are ongoing, it remains unclear what the final outcome will be, although it must be acknowledged that for the Mercosur countries offers on EU agricultural produce are essential to securing any deal.
69. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the details of the plan for a rescue and restructure scheme for businesses here impacted by Brexit submitted to the Directorate General for Competition; if the scheme is intended to provide equity and loans to firms only; the minimum and maximum loan amounts proposed to be permissible under the scheme; if direct grant aid will be permissible under the scheme; the other criteria associated with the scheme; and if the scheme adheres to existing state aid rules in operation at EU level. [49835/17]
Amharc ar fhreagraA Rescue & Restructuring (R&R) Scheme has been notified by my Officials to the Commission for approval. This scheme adheres to existing State Aid rules. While I do not expect there will be a need for the State to provide rescue/restructuring aid to companies, it is prudent to have contingency measures in place, so that we can respond swiftly to changing circumstances as necessary. Since the decision of the UK last July to exit the EU, my Department has been working with Enterprise Ireland and other stakeholders to develop a suite of measures to mitigate the potential effect of Brexit on Irish businesses.
The R&R scheme will apply to all SMEs who are in difficulty. Under the scheme an undertaking is considered to be in difficulty when, without intervention by the State, it will almost certainly be condemned to going out of business in the short or medium term
The aid will be granted in the form of equity support. The amount and intensity of any restructuring aid will be limited to the amount that is absolutely necessary up to a maximum of €10m.
The conditions for granting the aid include:
- The aid contributes to a well-defined objective of common interest;
- The need for a State intervention is shown;
- The aid measure is appropriate;
- The aid has an incentive effect;
- The aid is proportionate;
- Any undue negative effects on competition and trade between Member States are avoided; and
- The aid is transparent.
While awaiting approval, the scheme remains in draft form. However, once approved, it will be published and the detail of the scheme will then be available.
70. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Business, Enterprise and Innovation the titles of reports that her Department received in 2016 that have yet to be made public; and the reason each has not been published, in tabular form. [49836/17]
Amharc ar fhreagraDetails of the reports received by my Department in 2016, that were not made public, are set out in the table.
|
Report Title |
Reason for not Publishing |
|
Health check on email archive system |
Internal ICT assessment – not for publication |
|
ICT Security Reviews |
Internal ICT security assessments – not for publication |
|
Patents Office ICT System Architecture Review |
Internal ICT assessment – not for publication |
|
ICT Security Reviews |
Internal ICT assessments - not for publication |
|
Health Check on Microsoft SQL server systems |
Internal ICT assessment - not for publication |
71. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Business, Enterprise and Innovation when the report from the Office of the Director of Corporate Enforcement on an investigation (details supplied) will be published. [49837/17]
Amharc ar fhreagraThe Section 955(1)(a) Report from the Director of Corporate Enforcement has been the subject of detailed consultation with the Office of the Attorney General.
On the advice received recently from the Attorney General, I do not have a legal power to publish statutory reports prepared pursuant to section 955 of the Companies Act, 2014.
I am conscious, however, that the shortcomings identified by Judge Aylmer in his ruling in the case of DPP v Sean Fitzpatrick have been the subject of significant concern. It is important to understand what factors led to such mistakes being made and we must take appropriate steps to address these shortcomings and ensure that they are never repeated.
In view of this, while I cannot publish the Report itself, I intend to publish an account of the investigative failures identified by Judge Aylmer and the steps that are being taken to address them. These include ongoing reform within the ODCE and the establishment, as announced by Government earlier this month, of the Office of the Director of Corporate Enforcement as a new independent company law enforcement agency, to provide greater autonomy to the agency and ensure it is better equipped to investigate increasingly complex breaches of company law. Work on the drafting of the necessary General Scheme of a Bill to give effect to this decision has commenced.
72. Deputy Bernard J. Durkan asked the Minister for Finance the way in which the costs of credit here compare with such costs throughout Europe, with particular reference to the need to ensure that industry here is able to compete; and if he will make a statement on the matter. [49791/17]
Amharc ar fhreagraThe Deputy will be aware that I, as Minister for Finance, have no direct function in the relationship between the banks and their customers. I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time and these are taken by the board and management of the relevant institution.
However, it should be noted that interest rates are in a downward trajectory throughout the EU including Ireland as evidenced in the most recent joint European Commission/European Central Bank Survey on the access to finance of enterprises (SAFE) October 2016 to October 2017. The EU average interest rate decreased from 3.8% in 2016 to 3.4% in 2017 while Ireland’s interest rate decreased from 5.9% in H1 2016 to 5% in H1 2017.
It should be noted that cost of credit is only one of several factors affecting competitiveness of SMEs. Furthermore, it is only one of a number of reasons why SMEs decide to seek finance. The most recent published Department of Finance SME Credit Demand Survey, covering the period October 2016 to March 2017, reports only 1% of the SMEs that did not seek credit stated this was because it was too expensive to borrow. The same survey also showed that, among those SMEs with outstanding loans, the average claimed cost of credit across all outstanding loans was 3.6%, down from 4.8% in March 2016.
In the latest Central Bank of Ireland report on Trends in Business Credit and Deposits, the total weighted average interest rate on new non-financial SME loan draw-downs during Q2 2017 was 4.05 per cent. In contrast, the existing stock of Irish SME loans carry a lower weighted average interest rate; recorded at 3.20 per cent at end-Q2.
This Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources.
This year, to address the challenges posed to SMEs by Brexit, the Government recently announced a Brexit Loan Scheme, which will provide affordable working capital financing to SMEs and small mid-caps that can demonstrate that they are either currently impacted by Brexit or will be in the future. This Scheme will be delivered by the Strategic Banking Corporation of Ireland through commercial lenders and will serve to get much-needed working capital into Irish businesses. The Scheme will make up to €300 million available to businesses of up to 499 employees, and will be open to both clients of State Agencies and businesses with no relationship with State Agencies.
The Government is also considering the development of a Business Advisory Hub which would assist SMEs to make informed funding/investment decisions to help them avail of existing State supports or private market solutions.
73. Deputy Pearse Doherty asked the Minister for Finance his plans to repay bilateral and other sovereign loans at an earlier date than scheduled; and if he will make a statement on the matter. [49651/17]
Amharc ar fhreagraThe Deputy will be aware that we have already repaid early some 81 per cent of our IMF loan. This early repayment, which was completed in 2015, generates significant interest savings. It also reduces the refinancing requirement in the coming years as debt that was originally to mature over the period July 2015 – January 2021 has been replaced with longer-term debt.
The Deputy will also be aware that on 7 September this year, I announced Ireland’s intention to repay early and in full the remainder of the IMF loan as well as the bilateral loans from Sweden and Denmark. This will further reduce the debt interest bill. In addition, replacing EU-IMF Programme related debt with marketable debt increases the purchase capacity of the European Central Bank (ECB) for Irish government bonds.
The third of the bilateral lenders is the UK. However, it is not in Ireland’s financial interests at this time to repay early the bilateral loan from the UK. This is a fixed rate loan and the loan agreement contains a break clause which would be triggered in the event of early repayment. The associated costs would offset any potential interest savings.
Similarly, it is not in Ireland’s financial interest to repay early the EFSF and EFSM loans as these facilities can, on a like-for-like basis, raise funding at lower interest rates than Ireland.
Early repayment of the loans from the IMF, Denmark and Sweden requires a waiver of the right from the remaining Programme lenders – the EFSF, the EFSM and the UK – to proportionate early repayment. A waiver has already been secured from the UK and the legal processes to secure the waivers from the EFSM and EFSF are underway.
74. Deputy Billy Kelleher asked the Minister for Finance the way in which an academy (details supplied) can get recognised in order not to charge VAT on its courses; and if he will make a statement on the matter. [49662/17]
Amharc ar fhreagraI have been advised by the Revenue Commissioners that in accordance with the EU VAT Directive and CJEU case law, the provision of children’s or young people’s education and school or university education and the provision of training and development courses of a vocational nature are exempt from VAT.
Where a school or academy is providing courses for educational or vocational purposes, any such course is exempt from VAT provided the lessons in question are provided as part of a programme that meets the standards set out by the Department of Education and Skills syllabus or, in the case of vocational training, the course is aimed at acquiring or updating knowledge and skills in relation to a specific profession or trade.
Where courses are primarily supplied for recreational purposes they are liable to VAT at the standard rate.
Further information on the VAT treatment of education and vocational services is available on Revenue’s website https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part03-taxable-transactions-goods-ica-services/Services/services-education-vocational-training-post-2015.pdf.
Where a taxpayer is unsure of the VAT treatment of its services they should contact their local Revenue district in order to verify their VAT treatment.
75. Deputy Brendan Ryan asked the Minister for Finance if an application for the disabled drivers and disabled passengers scheme by a person (details supplied) will be expedited; and if he will make a statement on the matter. [49738/17]
Amharc ar fhreagraI am advised by Revenue that an application under the Drivers/Passengers with Disabilities Scheme was received from the person concerned on 15 November 2017 and that a Certificate of Approval will issue within the next week.
76. Deputy Bernard J. Durkan asked the Minister for Finance the tax deducted in the case of a person (details supplied); and if he will make a statement on the matter. [49772/17]
Amharc ar fhreagraI am advised by Revenue, following on from the reply to PQ 48659/17 which issued on 16 November, the person concerned has been in receipt of the Rent Tax Credit for all years since 2005. Therefore I can confirm that no additional refund is due.
77. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 67 of 16 November 2017, the penalties that will now apply to persons who come forward with a declaration after the 4 May 2017 deadline; and if he will make a statement on the matter. [49817/17]
Amharc ar fhreagraI am advised by Revenue that the penalties to be applied in the case of persons who did not come forward by 4 May 2017 to make a qualifying disclosure and who have tax liabilities relating to offshore matters will be determined in accordance with Revenue’s Code of Practice for Revenue Audit and other Compliance Interventions.
The rate of penalty in a particular case is determined by reference to the category of default and whether the tax defaulter has cooperated fully with Revenue in resolving matters, and is applied to the difference between the tax properly payable and the amount, if any, actually paid. The penalty rates are detailed in the following table.
Penalties in Cases Where No Qualifying Disclosure is Made
|
Category of Default |
Penalty |
Full Cooperation Penalty Reduced To |
|
Careless behaviour without significant consequences |
20% |
15% |
|
Careless behaviour with significant consequences |
40% |
30% |
|
Deliberate behaviour |
100% |
75% |
Those penalty rates are substantially higher than the rates which apply in the case of qualifying disclosures. In the case of an unprompted qualifying disclosure relating to careless behaviour without significant consequences, a penalty rate of 3% applies where the tax defaulter cooperates fully with Revenue. A first unprompted qualifying disclosure concerning careless behaviour with significant consequences is liable to a penalty of 5%, and the penalty for a disclosure of this kind relating to deliberate behaviour is 10%, in cases where full cooperation is given.
78. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 67 of 16 November 2017, the role of financial institutions regulated here in providing information to the Revenue Commissioners in respect of offshore income sources and assets; and if he will make a statement on the matter. [49818/17]
Amharc ar fhreagraI am advised by Revenue that there are a number of obligations placed on financial institutions to provide information to Revenue in respect of offshore income sources and assets.
Section 895 Taxes Consolidation Act (“TCA”) 1997 (with effect from 1 June 1992) places an obligation on intermediaries, including financial institutions, which act for or assist Irish residents in opening foreign bank accounts, to make an appropriate return to Revenue. The following details must be provided for each resident: name and address, tax reference number, the name and address of the foreign bank account, the date on which the foreign account was opened and the amount of the deposit made in opening the account.
Section 896 TCA 1997 (with effect from 15 February 2001) ensures that investments in foreign investments, including foreign life policies, are subject to the same reporting requirements as investments in foreign deposit accounts. The reporting requirements under this section mean that intermediaries who act on behalf of Irish resident persons who invest in offshore products are required to automatically notify Revenue of the investment. For each investor, the following details must be provided: name and address, the tax reference number, a description of the relevant facilities provided, including a description of the offshore product concerned and the name and address of the person who provided the offshore product and details of all payments made by or to the person in respect of the offshore products.
It may also be of interest to the Deputy that those regulated institutions also have reporting obligations in respect of domestic accounts.
Section 891B TCA 1997 and associated regulations, which implement the obligations in the section, [Returns of Payments (Banks, Building Societies, Credit Unions and Saving Banks) Regulation 2008] places an obligation on financial institutions to make annual returns to Revenue. The following information must be returned for each Irish resident account holder: name, address, date of birth (if on record), the account number, the amount of the interest or other profit type payment, and, where appropriate, the tax deducted from the payments (e.g. DIRT). Irish financial institutions are required to make all reasonable efforts to return the tax reference number of the payee.
Section 891B TCA 1997 and associated regulations, which implement the obligations in the section, [Return of Payments (Insurance Undertakings) Regulations 2011] places an obligation on insurance undertakings to make annual returns to Revenue. The following information must be returned for each Irish resident policy holder: name, address, date of birth (if on record), the investment number associated with the policy and the value of the policy held. The insurance undertaking is also required to make all reasonable efforts to return the tax reference number.
Section 891C TCA 1997 and associated regulations, which implement the obligations in the section, [Return of Values (Investment Undertakings) Regulation 2013] places an obligation on investment undertakings to make an annual reporting to Revenue. The following information must be returned for each Irish resident unit holder: name, address, date of birth (if on record), the investment number associated with the investment and the value of the units held. The investment undertaking is also required to make all reasonable efforts to return the tax reference number.
Irish regulated financial institutions must report certain details in respect of non-Irish residents to Revenue under the OECD’s Common Reporting Standard (as implemented by s.891F), the EU’s Directive on mandatory automatic exchange of information (as implemented by s.891G), and the US’s Foreign Account Tax Compliance Act (as implemented by s.891E). These standards require that the following information is reported for each person: name, address, jurisdiction of tax residence, gross amount paid, account balance on the reporting date, details of accounts closed. Unlike the annual domestic reporting obligations, date of birth and tax reference numbers are required fields in respect of reporting under the international standards.
In addition I am advised by Revenue that it has various powers to seek information from Irish based financial institutions where it is deemed necessary as part of their investigations. These include the power, under section 906A of the TCA 1997, to issue a notice to a financial institution requiring information for the purpose of enquiring into a liability, and the power to apply to the Tax Appeals Commission to serve notice on a financial institution requiring it to furnish information concerning a taxpayer of a group taxpayers who may have failed to comply with the Taxes Acts under section 907 of the TCA 1997.
Section 908 of the TCA 1997 provides that Revenue may to apply to the High Court for an order requiring information from a financial institution including in respect of a group or class of persons whose individual identities are not known, and Revenue can also seek a District or Circuit court order to obtain information from a financial institution where there is reasonable suspicion that a Revenue offence is being ,has been or is about to be committed by virtue of section 908A of the TCA 1997.
79. Deputy Michael McGrath asked the Minister for Finance the contact with a company (details supplied) including details of meetings held and correspondence exchanged since 1 September 2017 in respect of the collection of the money due under the EU state aid rules; the position on this issue; and if he will make a statement on the matter. [49819/17]
Amharc ar fhreagraIreland has never accepted the Commission’s analysis in the Apple State aid Decision.
However, we have always been clear that the Government is fully committed to ensuring that recovery of the alleged Apple State aid takes place without delay and has committed significant resources to ensuring this is achieved as quickly as possible whilst ensuring that the interests of the Irish taxpayer are adequately protected.
In this regard, Irish officials and experts have been engaged in intensive work to ensure that the State complies with all its recovery obligations as soon as possible, and have been in constant contact with the European Commission and Apple on all aspects of this process for over a year.
Ireland has made significant progress on this complex issue and is close to the establishment of an escrow fund in compliance with all relevant Irish constitutional and European Union law.
Finally, the Government profoundly disagrees with the European Commission’s analysis in the Apple State aid case. As this is the subject of open legal proceedings, it will not be possible to comment further in this regard.
80. Deputy Michael McGrath asked the Minister for Finance the Central Bank's role in monitoring the methodology used by bank lenders, non-bank lenders and unregulated lenders to calculate mortgage arrears; the enforcement powers the Central Bank has relating to the miscalculating of mortgage arrears; the steps that the Central Bank has taken regarding the apparent miscalculation of mortgage arrears by (details supplied); and if he will make a statement on the matter. [49838/17]
Amharc ar fhreagraThe Central Bank of Ireland (the Central Bank) does not regulate unregulated loan owners. The Central Bank therefore has no role in monitoring the methodology used by unregulated lenders to calculate mortgage arrears. However, the Central Bank is responsible for the regulationof bank lenders and non-bank lenders. This includes the monitoring of regulated entities, including bank lenders and non-bank lenders, compliance with financial services legislation including the Central Bank’s Statutory Codes of Conduct such as the Consumer Protection Code 2012 (‘the Code’), the Code of Conduct on Mortgage Arrears 2013 (‘the CCMA’), and the Central Bank (Supervision And Enforcement) Act 2013 (Section 48) (Lending To Small And Medium-Sized Enterprises) Regulations 2015 (‘the SME Regulations’). Whilst ‘arrears’ is a term defined for the purpose of the Code, the CCMA and the SME Regulations, the methodology used bybank lenders and non-bank lenders to calculate mortgage arrears is not specifically covered under financial services legislation or the Central Bank’s Statutory Codes of Conduct. However, where issues arise, they are considered in the context of the Central Bank’s regulatory and supervisory framework and are addressed accordingly.
The Administrative Sanctions Procedure, which is applicable to all regulated financial service providers, is the means by which the Central Bank investigates and sanctions breaches of financial services law by regulated firms. Information detailing this and the full range of enforcement powers available to the Central Bank is available on the Central Bank’s website at www.centralbank.ie/consumer-hub/explainers/what-enforcement-powers-does-the-central-bank-have.
81. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has undertaken reviews or investigations relating to the miscalculation of mortgage arrears in individual lenders or in the industry as a whole; the number of investigations that have taken place; the outcomes of those investigations; and if he will make a statement on the matter. [49839/17]
Amharc ar fhreagraI have been informed by the Central Bank that it has been advised of the introduction of some changes to the way monthly loan payments are calculated. The Central Bank advised me that it has been considering this issue, however due to statutory confidentiality requirements, the Central Bank may not publicly disclose much of its supervisory engagement with individual firms.
