Darragh O'Brien
Ceist:107. Deputy Darragh O'Brien asked the Tánaiste and Minister for Foreign Affairs and Trade the status of the situation in Ukraine; and if he will make a statement on the matter. [52819/17]
Amharc ar fhreagraUkrainian Conflict
Ceisteanna (107)
Freagraí scríofa
The conflict in eastern Ukraine - now in its fourth year - has resulted in over 10,000 deaths, forced 1.7 million people to flee their homes and left an estimated 3.5 million in need of humanitarian assistance.
Despite numerous commitments to a ceasefire, the security situation in eastern Ukraine remains fragile. Over recent weeks there has been a steady increase in recorded violations of the most recent truce with both sides continuing to ignore calls to pull back their heavy weapons from the contact line. Daily shelling has resulted in significant damage to critical civilian infrastructure facilities, in particular water and power supplies, as wells as schools and hospitals. With no let-up in the fighting, little progress has been made this year on implementing the Minsk peace agreements.
The EU remains fully behind efforts to secure implementation of the Minsk peace agreements within the framework of the OSCE Trilateral Contact Group (OSCE, Russia and Ukraine) and the Normandy Format (France, Germany, Russia and Ukraine). The Trilateral Contact Group continues to work on confidence building measures, including exchange of prisoners and disengagement from the contact line.
In September, Russia tabled a UN Security Council resolution for the deployment of UN peacekeepers to protect the OSCE Special Monitoring Mission to Ukraine (SMM). While this is a welcome development it remains to be seen if significant concerns over elements of the proposal, including Russia‘s insistence on a role for the separatists in the practicalities of any UN deployment, can be overcome.
The EU economic sanctions imposed on Russia in 2014 for its role in destabilising Ukraine remain in place. The duration of the sanctions is linked to the full implementation of the Minsk agreements. The measures run until 31 January 2018 and it is likely that Member States will agree to their roll over for a further six months given the lack of progress on the ground.
The EU remains fully committed to supporting Ukraine’s continued delivery of its comprehensive national reform programme. It is important to acknowledge the significant improvement that has taken place over the last two years. No country has made as much progress as Ukraine on internal reforms and economic stabilisation while also dealing with an armed conflict on its territory. The EU-Ukraine Association Agreement entered into force on 1 September, enabling the EU to further strengthen its cooperation with Ukraine and to deepen the country’s political association and economic integration with the Union. The fruits of this closer cooperation can already be seen. In the past year there has been a 25% increase in two way trade and this growth is expected to continue in the future.
Question No. 108 answered with Question No. 101.
International Election Monitoring
Ceisteanna (109)
Darragh O'Brien
Ceist:109. Deputy Darragh O'Brien asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the recent presidential election in Honduras, the specific measures that will be taken by the EU and international community following the disputed vote, and if he will make a statement on the matter. [53032/17]
Amharc ar fhreagraFreagraí scríofa
Presidential and congressional elections took place in Honduras on 26 November 2017. The Supreme Electoral Tribunal of Honduras has declared that, in the Presidential ballot, the incumbent President Juan Orlando Hernández of the Partido Nacional de Honduras obtained 42.98% of the vote, against 41.38% for Salvador Nasralla, the candidate for the Allianza de Oposición. The third placed candidate, of the Partido Liberal, received 14.73% of the vote. The narrow margin between the two leading candidates corresponds to approximately 50,000 votes, of a total of almost 3.5 million.
I am aware of complaints of irregularities arising following the vote, as well as reports of violence during protests in the aftermath of the elections. I condemn unreservedly any acts of intimidation or violence perpetrated against those seeking to peacefully demonstrate or defend their rights. In particular, I wish to condemn the loss of human life in recent days and to express my sincere condolences to the families of the victims.
I echo calls made by the spokesperson of the EU High Representative Federica Mogherini last week for calm and restraint in Honduras in the aftermath of the election. It is imperative that all sides act responsibly and work together, using the legal mechanisms available to them to address any potential complaints of irregularity regarding the electoral process, and to avoid violence at all times.
The EU deployed an Election Observer Mission to Honduras in October which consists of 22 long-term observers and 40 short-term observers. Facilitated by my Department, Ireland has contributed one long-term observer and one short-term observer to this mission, the aim of which is to provide an independent public assessment of the election process. I am pleased that Ireland was in a position to contribute to this vital work.
The EU Election Observation Mission released a statement last Thursday, 7 December regarding the post electoral situation, calling for fundamental freedoms to be respected and for violence to be avoided at all costs. The statement welcomed the openness expressed by the Supreme Electoral Tribunal of Honduras to address any challenges made to the election result. Crucially, the EU Election Observation Mission delegation is committed to remaining in Honduras and continuing its vital work to closely observe the election until the electoral process is fully concluded.
While Ireland does not have diplomatic representation in Honduras, officials at the Department of Foreign Affairs and Trade raise issues relating to the protection and defence of human rights in Honduras both at EU and UN level, including through direct contact with the EU Delegation in Tegucigalpa.
On my instruction, we will continue to do so in light of recent developments in the country.
Officials of my Department have also met with human rights defenders from Honduras, most recently in Dublin in October 2017, when the then upcoming elections were discussed in some detail. Irish Aid contributes funding to programmes in Honduras through civil society organisations, chiefly Trócaire, including in support of its important work on human rights.
I can assure the Deputy that we will continue to monitor the situation in Honduras closely as the post electoral process progresses into its next stages.
Shannon Airport Facilities
Ceisteanna (110)
Clare Daly
Ceist:110. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to review the use of Shannon Airport by the US military in view of the supporting role played by the United States in the war in Yemen and the violations of human rights taking place in that country as a consequence of that war. [53035/17]
Amharc ar fhreagraFreagraí scríofa
The Air Navigation (Foreign Military Aircraft) Order 1952 gives the Minister for Foreign Affairs primary responsibility for the regulation of activity by foreign military aircraft in Ireland. In this context, permission for foreign military aircraft to land at Irish airports is given only on condition that the aircraft are unarmed, carry no arms, ammunition or explosives and do not engage in intelligence gathering, and that the flights in question do not form any part of military exercises or operations. All States, including the United States, must confirm that their aircraft meet these criteria. These conditions reflect Ireland’s policy of military neutrality and are strictly applied. I share the deep concern as expressed repeatedly from all quarters in this House at the deteriorating situation in Yemen. The humanitarian crisis in that country demands an urgent agreement on a full cessation of hostilities and immediate improved humanitarian access to those in need. I again call on all of the belligerents to agree to a peaceful resolution of the conflict. At my request Ireland joined with a core group of countries at the UN Human Rights Council to drive forward the adoption of a Resolution on Yemen that establishes a group of international experts, who will examine allegations of violations of human rights and humanitarian law on the ground. This tasking is an important step towards accountability in Yemen.
Human Rights
Ceisteanna (111)
Clare Daly
Ceist:111. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to make his views known to the Saudi Arabian authorities in view of the human rights violations being committed by Saudi Arabia in Yemen and his acknowledgement of same; and if continued trade with Ireland is dependent on the cessation of such violations of the human rights of the citizens of Yemen by Saudi Arabia. [53036/17]
Amharc ar fhreagraFreagraí scríofa
I remain extremely concerned about the current situation in Yemen, as the humanitarian situation has reached crisis point. The war is now in its third year, the political process has stalled, and the fighting is having devastating consequences for civilians, with credible allegations of violations of international humanitarian law. Yemen is also facing the world’s fastest-growing cholera epidemic. The recent death of former President Ali Abdullah Saleh has led to a deterioration in the situation and an escalation in violence in parts of Yemen, particularly near the capital, Sana’a. The humanitarian catastrophe in Yemen has been exacerbated by the ongoing brutal conflict. In addition to the loss of life, infrastructure has been destroyed, cutting off much of the population from food and other supplies.
Ireland has close economic ties with Saudi Arabia, and this relationship has considerable benefits for the Irish economy. However, this partnership does not prevent us from raising our concerns in the appropriate channels. Over the past twelve months, my predecessor, Minister Flanagan, has raised concerns about the appalling humanitarian situation in Yemen, and about attacks which have directly impacted on civilians, with Saudi Arabia and with UAE at Ministerial level.
More recently, officials from my Department met with the Saudi Embassy in Dublin last month, and they passed on my concerns in relation to human rights violations and humanitarian access, and re-stated Ireland’s view that there can be no military solution to the crisis in Yemen. In the past few days, the Embassy of Ireland in Saudi Arabia has also conveyed to the Government of Yemen that the reopening of Yemeni ports, including Hodeida particularly, for both humanitarian and commercial traffic, is essential to avoid a humanitarian catastrophe.
I am committed to taking action where possible, through the UN system. At the Human Rights Council in September 2017, I decided that Ireland should join a small core group of countries that drove forward the adoption of a Resolution on Yemen. This Resolution establishes a group of international experts, who will establish the facts in relation to violations of human rights and humanitarian law on the ground. This group will report back to the Human Rights Council, as an important step towards accountability in Yemen.
Ireland will continue to press for a negotiated settlement to the conflict in Yemen, respect for human rights and international humanitarian law, and improved humanitarian access to those in need. We fully support the efforts of UN Special Envoy Ismail Ould Cheikh Ahmed to work towards a peace agreement. At the Foreign Affairs Council on 11 December, I urged stronger action by the EU in relation to the barriers to humanitarian access in Yemen. I will continue to raise my concerns about the situation in Yemen with the Saudi authorities, as well as with other parties, and at EU and international levels, whenever opportunities arise.
Brexit Negotiations
Ceisteanna (112)
Micheál Martin
Ceist:112. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade the position regarding maintaining full alignment; and the way in which he and his officials are of the view this will be applied in any future EU-UK deal. [52908/17]
Amharc ar fhreagraFreagraí scríofa
The issue of regulatory alignment arises both in regard to the wider EU-UK relationship, and in the particular circumstances of Ireland.
It is clear that, once the UK exits the EU, the question will arise as to how far the UK, which will not be bound by EU law once it departs and which will not be part of the EU decision making process, will wish over time to exercise its own right to legislate and regulate in ways which could mean divergence between UK and EU regulations. The smoothest possible trading relationship will therefore require mechanisms to monitor and, if possible, resolve such regulatory divergence.
The second phase of the Article 50 negotiations will enable discussions to get underway between the EU and the UK on these important issues. It remains Ireland’s overriding position that a future EU-UK agreement should be comprehensive and ambitious and as wide as possible in its scope, while ensuring a level playing field and protecting the integrity of the Single Market. It is also our position that an agreement should promote regulatory conformity, ensure ways to manage potential regulatory divergence, and impose the disciplines needed in order to ensure a level playing field.
In regard to Ireland, it is of course our strong preference that a broader EU-UK agreement will resolve all Irish-specific issues, including that of regulatory alignment between North and South. However, in the joint progress report from the UK and the Commission published on 8 December there is a commitment from the British Government that, if the agreement does not achieve that goal, and in the absence of other agreed solutions in regard to protecting North/South co-operation and avoiding a hard border, it “will maintain full alignment with those rules of the Internal Market and the Customs Union which, now or in the future, support North-South cooperation, the all-island economy and the protection of the 1998 [Good Friday] Agreement.”
This backstop commitment is firm and wide-ranging in its scope. “Alignment” is a term used in EU law in the context of adherence to the acquis communautaire. To “maintain full alignment” therefore requires the UK to continue to adhere to all elements of EU Internal Market and Customs Union law which supports the fundamentally important goals set out above.
International Relations
Ceisteanna (113)
Micheál Martin
Ceist:113. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade his views on whether Irish-British relations have been strained for the past two years; and the actions that will be taken to correct this. [52910/17]
Amharc ar fhreagraFreagraí scríofa
While the UK’s decision to leave the EU has serious implications for Ireland, we maintain a strong and constructive bilateral relationship with the UK. We are fully committed to developing and enhancing this relationship over the coming years. In addition, in the context of the UK exit from the European Union, we will work to secure the closest possible positive relationship between the UK and the European Union.
During the Taoiseach’s visit to London in May of this year, his first official overseas visit in office, Prime Minister May spoke of her desire to establish a “close and special partnership” with Ireland after Brexit. We fully share this objective, and recognise that there can be no room for complacency in our relationship.
Numerous channels will continue to exist for Irish-British engagement and both Governments continue to make extensive and effective use of these. The Good Friday Agreement provides for important institutional cooperation on an east-West basis including through the British Irish Council (BIC).
Other channels of contact and cooperation have developed over the years as the relationship between these islands has grown closer. For example, in 2012, a process was established involving summits between the Taoiseach and the UK Prime Minister, supported by a Joint Work Programme managed at official level by the heads of all government departments in both London and Dublin. In addition, the British Irish Parliamentary Assembly (BIPA) brings together elected representatives from the Oireachtas, Westminster, the Northern Ireland Assembly, and the Scottish and Welsh devolved assemblies.
In addition, there have been a number of successful high-level visits in recent years that have had a very positive impact on our relationship, notably the state visit by Queen Elizabeth II to Ireland in 2011 and the reciprocal state visit by President Higgins to the UK in 2014. Most recently, President Higgins travelled to Dumfries House in Scotland at the invitation of the Prince of Wales, following the visit of the Prince of Wales and Duchess of Cornwall to Ireland earlier this year, their third visit in as many years.
I recently welcomed Foreign Secretary Boris Johnson to Dublin, providing an opportunity to discuss the importance of the bilateral relationship between the UK and Ireland and how this can be maintained and strengthened after the United Kingdom leaves the European Union. Regular bilateral meetings between Irish Ministers and their UK counterparts facilitate cooperation across a range of portfolios.
The Embassy of Ireland in London will remain our largest bilateral Embassy globally, and this year two additional diplomatic officers have been assigned to the Embassy. The Consulate General in Edinburgh was also assigned an additional diplomat in 2015. ‘Team Ireland’ enjoys a significant footprint in Britain with our trade, tourism, and investment agencies continuing to make a positive impact. With 600,000 Irish-born, and as many as one in four of Irish descent living in Britain, the Irish community continues to be recognised for its positive contribution to modern British society. In this context, there are over 60,000 Irish-born Directors of British companies.
It is clear that there are a wide range of arrangements in place to allow for constructive and mutually-beneficial dialogue with the UK and the continued strengthening of the British-Irish relationship. The UK has always been one of our most important bilateral relationships. It is up to us to continue to strengthen this relationship and to find areas for sustained cooperation. I believe that the structures, the warmth and goodwill, and the excellent working relationships needed to maintain a strong bilateral relationship are in place and will continue to grow and develop.
Israeli Settlements
Ceisteanna (114)
Maureen O'Sullivan
Ceist:114. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Foreign Affairs and Trade the progress he has had raising the issue of the Israeli settlement in the Golan at the EU Foreign Affairs Council, including the lack of EU funds available to NGOs in the area and the lack of meaningful statements from the EU regarding the situation in that area. [53172/17]
Amharc ar fhreagraFreagraí scríofa
I am aware of the extension of Israeli settlements in the occupied Syrian Golan, and of the broader difficulties faced by the people in this area, which are certainly a cause for concern. Officials from my Department have recently met with NGOs operating in the Golan, and remain in contact with them.
In the occupied Syrian Golan, as in the West Bank, the introduction and settlement of communities of the occupying power, to alter the demography of the area, is illegal under international law. The process of establishing settlements inevitably involves violations of the rights of the occupied population, through seizure of their land, discriminatory treatment and other restrictions. Tactics including planning laws, zoning, military use, national parks etc. are used by the Israeli authorities to advance this process under a cloak of legality. None of these measures can alter the fact that the whole process is illegal.
The Government has consistently and repeatedly conveyed these concerns about land use, demolitions and settlements in general to the Israeli authorities, and highlighted them in our interventions at EU, UN and international level. In addition, I raised these concerns directly in the context of my visit to Israel and Palestine in July, and I raised them again with Prime Minister Netanyahu in our meeting with him in Brussels on Monday. I will continue to avail of every appropriate opportunity to pursue them. In general, we address these issues in relation to the occupied territory as a whole, seeking to improve the protections of all the people living under that occupation, including in the Golan area.
Ireland’s concerns over these policies are most acute in relation to the West Bank, where the continued construction of settlements on occupied land is dangerously undermining the prospects for a peace agreement and the establishment of a Palestinian state, and this has been the focus of my international engagement on the settlements issue, both bilaterally and at EU level. By contrast, it is generally acknowledged that any comprehensive peace between Israel and the Arab states will involve the return of the Golan area to Syria. This does not lessen the obligation on Israel to treat the community there in accordance with international law so long as the occupation remains in being.
Question No. 115 answered with Question No. 101.
Question No. 116 answered with Question No. 98.
Good Friday Agreement
Ceisteanna (117)
Stephen Donnelly
Ceist:117. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the status of the Good Friday Agreement and on the next North-South Ministerial Council meeting; and if he will make a statement on the matter. [52888/17]
Amharc ar fhreagraFreagraí scríofa
As a co-guarantor of the Good Friday Agreement, the Government, working with the British Government, is continuing to work intensively to support the effective operation of all of its institutions and to ensure that the Good Friday Agreement in all its parts is fully protected and respected in the context of the UK’s withdrawal from the EU.
The Government has spared no effort in supporting and facilitating talks on the formation of a new Executive, over many months. However, devolved power-sharing government can only operate on the basis of an agreement reached between the two largest parties. The other parties represented in the Assembly - which have shown considerable patience - also have a critical role to play.
I am disappointed that, after several phases of negotiations in different formats, we still do not have an agreement to form an Executive. The issues under discussion – particularly those on language and culture – go to the heart of the divisions in society in Northern Ireland and agreement on them was always going to be challenging. However, I have always believed that it remains possible to reach an agreed outcome which ensures implementation of previous agreements and reflects the core principles of the Good Friday Agreement and power-sharing itself - partnership, equality, and mutual respect. It remains my conviction that this is achievable.
With the continuing absence of a functioning Executive, the North South Ministerial Council cannot operate and bring together the Government and the Executive to oversee ongoing North/South work and further develop cooperation, as provided for under the Agreement. This is a most serious absence, and particularly so at a time when the Council should be continuing the work it commenced last year to deal with the challenges of Brexit. Common Principles were agreed at the Plenary meeting of the North South Ministerial Council in November 2016, to coordinate engagement by the Government and the Executive to deal with the challenges that are raised on an all-island basis by the UK exit from the European Union. We should be working together on this through the North South Ministerial Council.
The Government has consistently affirmed our unwavering commitment to the Good Friday Agreement, and determination, as a co-guarantor of the Agreement, to secure the effective operation of all of its institutions. The Taoiseach and I continue to engage with the British Government and the parties in Northern Ireland to give full effect to that commitment.
International Relations
Ceisteanna (118)
Richard Boyd Barrett
Ceist:118. Deputy Richard Boyd Barrett asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on discussions he has had with the administration of the United States. [52958/17]
Amharc ar fhreagraFreagraí scríofa
The United States is an important partner for Ireland and the Government’s priority is to ensure that the long standing and warm relationship between Ireland and the US endures, in the interests of Ireland and of Irish citizens on both sides of the Atlantic.
With that in mind, and as is the case with all of our bilateral relationships, we engage with the US administration on an ongoing basis, both at official and political level.
In terms of my own discussions with the US administration, I visited the US twice in recent months - in September, for the UN General Assembly and bilateral engagement, and in October, for political engagements in Washington.
Both of these visits featured discussions with US administration officials. Those discussions covered inter alia issues such as the Ireland-US economic relationship, the UK exit from the EU, Northern Ireland, the Bombardier case and immigration reform, as well as topical foreign policy issues.
These visits, as well as others by Government officials and Ministers, are complemented by ongoing engagement by our diplomatic missions in the United States, led by our Embassy in Washington D.C.
In addition, I, along with officials of my Department, maintain ongoing contact with the US Embassy in Dublin, routinely raising issues such as visa policy and immigration reform.
Most recently, I spoke with the US Embassy earlier this week to convey my concern at the announcement by President Trump of the proposed relocation to Jerusalem of the US Embassy to Israel.
I can assure the Deputy that I, and my officials in the Department of Foreign Affairs & Trade, will continue to work assiduously to strengthen what is already a very warm and productive relationship.
Good Friday Agreement
Ceisteanna (119)
Brendan Smith
Ceist:119. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he is satisfied that legislation being enacted at present or proposed by the British Government in relation to its decision to exit the EU will not impact on aspects of the Good Friday Agreement. [52940/17]
Amharc ar fhreagraFreagraí scríofa
The Government is determined to ensure that the Good Friday Agreement in all its parts is fully protected and respected in the context of the UK’s withdrawal from the EU and this has been a headline priority since the UK referendum result. As co-guarantor of the Good Friday Agreement, the Government has a solemn responsibility to protect the Agreement in all its parts and the gains of the Peace Process which have been of immeasurable benefit to the entire island, north and south.
Upholding the Good Friday Agreement is also an objective shared by the British Government. Last Friday, we received firm commitments in the joint report of the negotiators of the EU and UK Government. These commitments include the maintenance of the Common Travel Area, protection of EU citizenship and other rights, and the protection of the Good Friday Agreement in all of its parts including in relation to North South co-operation and the principle of consent.
This agreement not only provides a guarantee that there will be no hard border in any circumstances, it spells out for the first time how this will be achieved. In the event that it is not possible to resolve the border issue as part of a wider EU-UK future relationship agreement, which has always been the Irish Government’s preference, or through specific solutions, paragraph 49 of the report states that, “in the absence of agreed solutions, the United Kingdom will maintain full alignment with those rules of the Internal Market and the Customs Union which, now or in the future, support North-South cooperation, the all-island economy and the protection of the 1998 agreement.” It has also been agreed that any agreements put in place will be accompanied by effective mechanisms to ensure implementation and oversight.
The upholding of the Good Friday Agreement is also an objective shared by the British Government. Last Friday, we received firm commitments in the joint report of the negotiators of the EU and UK Government. These commitments include the maintenance of the Common Travel Area, protection of EU citizenship and other rights for Irish citizens from Northern Ireland, and the protection of the Good Friday Agreement in all of its parts including in relation to North South co-operation and the principle of consent.
The British Government has proposed a number of pieces of draft legislation relating to the UK’s Withdrawal from the European Union, which are being considered at Westminster. While this is a matter for the UK Parliament, my Department, including through the Embassy in London, is actively following the progress of these bills at Westminster.
Compensation Schemes
Ceisteanna (120)
Charlie McConalogue
Ceist:120. Deputy Charlie McConalogue asked the Minister for Finance further to Parliamentary Question No. 131 of 17 November 2017, if his department has received legal clarification with regard to the issue (details supplied); and if he will make a statement on the matter. [52614/17]
Amharc ar fhreagraFreagraí scríofa
In replying to this question, I am making the assumption that the Deputy is referring to Parliamentary question number 131 of 17 October 2017 which asks why the Government has not agreed to cover 100% of Setanta third party compensation claims; if this means former customers are now potentially liable for partial cost of claims; and if the Minister for Finance will reconsider his approach on this issue.
In my reply, I indicated that there is a legal concern that any Government intervention to fully compensate third party claimants, and then “step into the shoes” of these claimants to recover directly any balance due from the Setanta liquidation could result in the Government having a lower status in the creditor hierarchy, and thus significantly reduce the amount it could recoup from the liquidator.
At the time I answered the PQ, I was awaiting legal advice on this matter from a Maltese law firm. My Department has recently received this advice, and after reviewing it have forwarded it to the office of the Attorney General for its consideration.
On receipt of a reply from the Attorney General's Office, I will be in a better position to further consider this matter.
Credit Availability
Ceisteanna (121)
Gino Kenny
Ceist:121. Deputy Gino Kenny asked the Minister for Finance if his attention has been drawn to the fact that the sale of legal hemp products such as clothing, bags and cannabidiol, CBD, oil is being hampered by banks' refusal to extend credit and debit card payment facilities to businesses selling these products in view of the fact they inaccurately deem the sales illegal; the legal position on this practice by banks; if he will provide direction to banks on this issue; and if he will make a statement on the matter. [52643/17]
Amharc ar fhreagraFreagraí scríofa
The Deputy will be aware that in my role as Minister for Finance I 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. This includes decisions in relation to what services are provided by the banks.
The Deputy also may wish to note that in Ireland banks do not exclusively offer credit and debit card payment facilities to businesses. Furthermore, there are financial service companies which manage an account and relationship between a retailer and various card schemes known as acquirers. Acquiring is a competitive market in Ireland, there are a range of options available to merchants from which to choose, including banks, bank subsidiaries and other payment institutions. If a merchant is not satisfied with their acquirer, they could stand to benefit from shopping around and choosing a different acquirer for their business.
My role is to ensure that there is an appropriate framework in place for the resolution of complaints in the financial services sector, including complaints about the refusal to provide a service. The person concerned may wish to make a formal complaint regarding this matter to the bank in question and the Central Bank's Consumer Protection Code 2012 sets out timeframes within which a regulated entity must respond to complaints.
If a customer has made a formal complaint to the financial service provider in question and is not satisfied with the outcome, I would suggest that they make a complaint to the Financial Services Ombudsman who may investigate a failure or refusal to provide a service. The Financial Services Ombudsman may investigate complaints from sole traders and limited companies with a turnover of less than €3 million a year. Investigations by the Financial Services Ombudsman are free of charge to the customer.
Property Tax
Ceisteanna (122)
John Lahart
Ceist:122. Deputy John Lahart asked the Minister for Finance his plans to introduce an allowance as an expense towards property tax for landlords who may have two or more properties and are providing tenancy; and if he will make a statement on the matter. [52711/17]
Amharc ar fhreagraFreagraí scríofa
In 2012 the inter-departmental group chaired by Dr Don Thornhill established to consider the structures and modalities of a property tax, recommended that Local Property Tax (LPT) paid by the owner in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. The Group recommended that consideration be given to phasing in deductibility over a period of years having regard to the pressures on the public finances.
However, in his 2015 review of the LPT conducted at the request of my predecessor, Dr Thornhill considered that this recommendation in favour of deductibility does not rest easily with the concept of the LPT as a tax on the amenity value of residential properties rather than as a business cost. He contended that owners and tenants of rental properties both derive value from the amenity value of these properties, the owner in the form of the rent and the tenant from living in the property. This Dr Thornhill considered contrasts with the situation regarding local authority rates on commercial properties. Owner occupiers are not allowed to claim LPT as a deduction against income tax and it is not appropriate on conceptual and equity grounds that they should. There is a need to ensure equity between owners of all residential properties – whether owner occupiers or landlords. Dr Thornhill recommended, after further reflection, that it would be inappropriate to allow LPT as a deduction against the taxation of income from rents on residential properties.
My Department will consider issues relating to the implementation of the outstanding recommendations in the 2015 Thornhill Review of LPT in due course in line with the 2019 revaluation timeline. The position of the Government will be made clear so that households will know well advance what its plans are for LPT. I expect the Department of Finance will commence work on this matter in the New Year in conjunction with the Departments of Public Expenditure & Reform, Housing, Planning & Local Government and Revenue.
Credit Union Regulation
Ceisteanna (123)
Noel Rock
Ceist:123. Deputy Noel Rock asked the Minister for Finance his plans to increase the cap on €60,000 savings within a credit union to assist persons saving for deposits for properties; and if he will make a statement on the matter. [52764/17]
Amharc ar fhreagraFreagraí scríofa
I can advise the Deputy that the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 (the Regulations) came into effect on 1 January 2016 following commencement of the remaining sections of the Credit Unions and Co-operation with Overseas Regulators Act 2012 which provided regulation making powers to the Central Bank.
These Regulations set out an individual member savings limit of €100,000 and also provided that credit unions could apply to the Central Bank to retain individual members’ savings in excess of €100,000, which were held at commencement of the Regulations and that Credit unions with total assets in excess of €100 million could apply to the Central Bank for approval to increase individual member savings in excess of €100,000. Some credit unions may have decided themselves to apply savings limits below €100,000.
The Central Bank developed application processes to facilitate credit unions in seeking the approvals outlined above. As provided for in the Regulations, in order for approval to be granted an applicant credit union must demonstrate that the granting of such approval is consistent with the adequate protection of the savings of members and effective and proportionate having regard to the nature, scale and complexity of the credit union. Applications to increase savings in excess of €100,000 will be accepted on an ongoing basis.
In its feedback statement to CP88 Consultation on Regulations for Credit Unions on commencement of the remaining sections of the 2012 Act the Central Bank committed to undertaking a review of the continued appropriateness of the savings limit once the impact of the restructuring of the sector, currently underway, can be assessed. This review will also assess if developments have emerged in the credit union business model which may warrant consideration of any amendments to the €100,000 limit for some credit unions. It is envisaged that such a review would be commenced within three years of the introduction of the regulations.
Motor Insurance Regulation
Ceisteanna (124)
Michael McGrath
Ceist:124. Deputy Michael McGrath asked the Minister for Finance the insurance firms licensed to sell motor insurance here whose prudential regulation is in another EU country and which are regulated here for conduct of business purposes only. [52890/17]
Amharc ar fhreagraFreagraí scríofa
The Central Bank of Ireland is responsible for the prudential supervision of insurance undertakings authorised by it. It is also responsible for the supervision of conduct of business for all insurers operating in the Irish market whether authorised here or elsewhere in the EU. The EU regulatory framework which allows insurers to provide services from one Member State into another, either through establishing a branch operation in the host country, or writing business from the home country (i.e. where authorised) into the host country on a 'freedom of services' (FOS) basis, is a central element of the Single Market. This passporting facility is of great benefit to many Irish authorised insurers who sell into the markets of other EU member States.
All motor insurance undertakings wishing to do business in Ireland are required to become a member of the national bureau (Motor Insurers' Bureau of Ireland (MIBI)) under Section 78 of the Road Traffic Act. This is an important requirement as the MIBI is the body in Ireland tasked with meeting the EU requirement of compensating victims of accidents caused by uninsured and unidentified vehicles. MIBI publishes its membership list on its website. This contains the details of all undertakings that are allowed to sell motor insurance in Ireland, whether authorised in the State or elsewhere in the EU. The list is available at:
www.mibi.ie/_fileupload/Member%20list/7%20MIBI%20Members%20List%20-%20September%202017.pdf.
When looking at the membership list, the Deputy will note that the freedom of services undertakings are marked by a reference to “FOS” in the company code field of the table. There were some 26 such undertakings in the latest membership list, from September 2017. These numbers may change as undertakings enter and exit the Irish market from time to time.
In addition, I am informed by the Central Bank that it has a register of insurance undertakings which have notified of their intention or obtained an administrative authorisation to carry on Non-Life Insurance business into Ireland, on a Freedom of Services basis. This is publicly available at:
http://registers.centralbank.ie/.
However, as it includes all undertakings, not just those providing motor insurance, I think the MIBI membership list will be of more assistance to the Deputy for the purpose of his question.
Tax Clearance Certificates
Ceisteanna (125)
Ruth Coppinger
Ceist:125. Deputy Ruth Coppinger asked the Minister for Finance his plans to ensure that developers or landlords involved in State contracts for housing are not engaged in offshore tax avoidance; and if he will make a statement on the matter. [52259/17]
Amharc ar fhreagraFreagraí scríofa
A condition for the award of State contracts or the payment of providers of services on behalf of the State is that the tenderer or the service provider must have a current tax clearance certificate in respect of Irish tax.
Revenue administers the general scheme of tax clearance certification in accordance with section 1095 of the Taxes Consolidation Act 1997. The purpose of the tax clearance scheme is to ensure that businesses and individuals that derive an economic benefit from the State are in compliance with their tax obligations.
I am advised by Revenue that it also operates a wide-ranging compliance management programme to address tax compliance risk in all its forms. The compliance behaviour of a taxpayer determines the nature, extent and consequences of Revenue’s risk management interventions which range from aspect queries and profile interviews to Revenue audits, and prosecutions, both summary prosecutions and serious criminal investigations. Targeted annual projects include the construction and property rental sectors.
Revenue’s work and focus in regard to offshore matters has been strengthened by greater co-operation and information sharing between tax authorities worldwide. Revenue is now receiving details of offshore assets and accounts held by Irish tax-residents under a range of international agreements including the Inter-Governmental Agreement to share financial account information with the United States (FATCA), the OECD Common Reporting Standard, and the EU Directives on Administrative Co-operation.
Revenue uses software to match the data that it receives from other tax administrations to Revenue’s taxpayer records, then cross-checks against prior returns to ensure relevant income and assets have been declared. Revenue also feeds the data into its social network analysis and anomaly detection tools, to highlight cases where possible tax compliance risks may arise and such cases are then the focus of specific Revenue intervention as part of its ongoing compliance intervention programmers.
The Deputy will be aware that in the context of the aforementioned new information sharing initiatives and developments, the Government introduced specific measures in the Finance Act 2016 to ensure that, as and from May 2017, tax defaulters whose default relates to offshore matters are unable to avail of the benefits of the voluntary disclosure regime. Anyone who did not come forward by 4 May 2017 to regularise his or her tax affairs now faces the prospect of substantially higher penalties, publication in the Quarterly List of Tax Defaulters and possible criminal prosecution.
I am satisfied that the combination of Revenue’s risk identification and evaluation processes, its extensive access to relevant and expanding data sources and the overall tax clearance underpinned by a strong legislative regime that penalises and sanctions offshore tax evasion are an effective framework for tackling tax non-compliance.
Stamp Duty
Ceisteanna (126)
Pearse Doherty
Ceist:126. Deputy Pearse Doherty asked the Minister for Finance the expected cost in 2018 of the proposed exemption for stamp duty for commercial properties that are made up of 25% residential property; and the rationale for same. [52976/17]
Amharc ar fhreagraFreagraí scríofa
It is assumed the Deputy is referring to the repayment of Stamp Duty where 75% of the land is used for residential development as included in section 61 of the Finance Bill 2017. I am advised by Revenue that information is not available in respect of the uptake of the measure (the future transactions that may qualify for the proposed relief from the 6 per cent rate) and therefore it is not in a position to provide information in respect of the expected cost ex ante. However, the Deputy may be interested to note the breakdown in the table below of Stamp Duty receipts in 2016 from non-residential property by category of property.
Stamp Duty Receipts from Non-Residential Property
|
- |
2016 - € Million |
|
Agricultural Land |
16.8 |
|
Non-Agricultural Land |
4.7 |
|
Site Only |
14.0 |
|
New Commercial/Industrial premises |
1.6 |
|
Second Hand Commercial/ Industrial premises |
207.0 |
|
Intangible Property |
2.1 |
|
Other |
9.7 |
|
Total Non-Residential |
255.9 |