Written Answers Nos. 131-150
131. Deputy Catherine Connolly asked the Tánaiste and Minister for Foreign Affairs and Trade his views on US Vice President Mike Pence's recent meeting with American soldiers en route to Kuwait at Shannon Airport; the way in which such a meeting aligns with Irish neutrality and the Government's commitment to neutrality; and if he will make a statement on the matter. [4274/18]
Amharc ar fhreagraThis Government is fully committed to Ireland’s longstanding policy of military neutrality, which is characterised by non-participation in military alliances. This commitment was most recently detailed in the White Paper on Defence published in August 2015. This reaffirmed that Ireland’s policy of military neutrality remains a core element of Irish Foreign policy, as had been previously articulated in the review of Foreign Policy, “The Global Island”, published in January 2015. This Government upholds and will continue to uphold that longstanding and publicly cherished policy.
This policy, together with our international activism on issues such as disarmament, international crisis management and peacekeeping, has helped us to speak with a distinctive and independent voice on many of the key challenges facing the world in relation to the maintenance of international peace and security.
Permission must be sought in advance for landings by all foreign military aircraft. Foreign military aircraft, of any and all States, requesting permission to avail of facilities at Shannon or any other Irish airport must adhere to strict conditions: conditions that are applied to ensure compatibility with Ireland’s policy of military neutrality. These conditions routinely include stipulations that the aircraft is unarmed, carries no arms, ammunition or explosives; that it must not engage in intelligence gathering and does not form part of any military operation or exercise. Successive Governments have made landing facilities at Shannon available to the US for many years. The facility to land is also made available to military aircraft from other countries. In considering requests for landings by foreign military aircraft, my Department’s primary focus is on whether the flights in question comply with these conditions. No distinction between States is made when it comes to the application of these criteria.
I am satisfied with the strict application of these conditions and with their compatibility with Ireland’s policy of military neutrality. Facilitation of landing requests for foreign military aircraft does not alter nor breach this policy and re-fuelling of a government jet en route to political consultations does not alter nor breach this policy.
132. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Foreign Affairs and Trade the steps he is taking to raise the detention of a person (details supplied) in an Israeli prison; the steps taken to advocate for their release; and if he will make a statement on the matter. [4033/18]
Amharc ar fhreagra133. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Foreign Affairs and Trade the actions taken by him and his officials on the approximately 350 Palestinian children held in Israeli prisons and detention centres; and if he will make a statement on the matter. [4034/18]
Amharc ar fhreagraI propose to take Questions Nos. 132 and 133 together.
The overall human rights situation in Israel and the Occupied Palestinian Territory, including the treatment of children in detention, remains a matter of concern. Ireland has repeatedly drawn attention to concerns regarding the treatment of Palestinian prisoners. We have paid particular attention over recent years to issues related to the detention of minors. Ireland also provides financial support to Israeli and Palestinian NGOs who are active in bringing these issues to light.
I am aware of the issues raised by UNICEF, including in the February 2013 UNICEF report, entitled “Children in Israeli Military Detention”. I would urge the Israeli authorities, in accordance with their obligations under the UN Convention on the Rights of the Child, to use detention only as a means of last resort, and for the shortest appropriate period of time, in the case of minors. The rights of the child are human rights. Detained Palestinians, especially children, should have the same protections and conditions that Israel affords its own citizens when detained.
During my visit to the Middle East last week, I again raised Ireland’s concerns about the detention of minors directly with the Israeli authorities, including the issues of night-time arrests and blindfolding.
Ireland has also raised these issues at EU level and in international fora, including during the Universal Periodic Review of Israel at the UN Human Rights Council in 2013. In the most recent Universal Periodic Review of Israel, last week, Ireland raised the issue of administrative detention, and made recommendations on the rights of detainees. My Department and I will continue to press on these issues in the relevant multilateral fora, and also, where appropriate, directly with Israel.
I am aware of the case raised by the Deputy, and note that the individual in question remains in custody. An Irish diplomatic representative was present at this person’s hearing in Ofer military court in the West Bank on 20 December, along with other international representatives. In view of her age and the nature of the charges against her, I am concerned that the military judge ruled at a remand hearing last week that she be held in detention for the duration of her trial. I understand that the first trial hearing is scheduled to take place on 31 January. My Department will continue to monitor that case and others.
134. Deputy Sean Sherlock asked the Tánaiste and Minister for Foreign Affairs and Trade his views on Irish Aid’s programme in Sierra Leone; and his further views on whether this programme is vital and should be sustained in view of the fact that the country is still emerging from conflict and humanitarian crises. [4043/18]
Amharc ar fhreagraIreland’s ongoing engagement in and with Sierra Leone, a key partner for our development cooperation, is consistent with Ireland’s long-standing commitment to support fragile and conflict-affected states.
The programme of bilateral assistance delivered by the Embassy of Ireland in Freetown played a crucial role in supporting the response to the Ebola crisis between 2014 and 2016, including through close cooperation with local and international partners. Since the end of the recovery period, the Embassy has shifted its attention to wider development priorities, in line with those set out in the One World One Future development cooperation strategy document, as well as the Sustainable Development Goals.
A budget of €6.7 million has been allocated for Ireland’s cooperation with Sierra Leone in 2018, with the aim of improving child nutrition, ensuring good governance and promoting gender equality.
The government of Sierra Leone is preparing a new poverty reduction strategy, which will be further informed by the programme of the new government, following Presidential and parliamentary elections in March. The Embassy of Ireland in Freetown, through its political engagement which complements the development programme, is providing ongoing financial, technical and political support to the electoral process, with the aim of ensuring that this year’s elections are peaceful, inclusive, credible and timely.
Planning for a new multi-annual Mission Strategy for the Embassy in Freetown is also underway. When finalised, this Strategy will form the framework for Ireland’s engagement with Sierra Leone, including development priorities, over the coming years.
135. Deputy Sean Sherlock asked the Tánaiste and Minister for Foreign Affairs and Trade his plans with regard to the future of Irish Aid’s programme with a view towards investment in countries in Central and Latin America. [4062/18]
Amharc ar fhreagraThe Government is strongly committed to Ireland’s overseas aid programme and to its place at the heart of our foreign policy.
The international development context has evolved significantly over the past five years: this forms the backdrop to the Government’s intention to produce a new policy on international development in 2018. This will build on Ireland’s existing development cooperation programme, taking stock of the implications of a fast-changing global environment, and set priorities for Ireland’s international development policy for the coming years.
In line with Ireland’s commitment to the 2030 Agenda and the Sustainable Development Goals, my Department provides development assistance to over eighty of the world’s least developed countries, supporting their needs. In addition, Ireland continues to respond to emergencies and protracted crises with humanitarian assistance.
Ireland has a long history of support for the development of countries in Latin America and the Caribbean. The majority of Ireland’s long-term development assistance to there is channelled through Irish and international non-governmental organisations, while support to missionaries continues.
The largest proportion of this funding has been allocated to humanitarian and long-term development interventions in Haiti, with Nicaragua, Honduras and Guatemala also receiving significant funding. Between 2012 and 2016, Irish Aid contributed over €45 million in long-term development and humanitarian assistance to this region.
Ireland is also supporting the peace process in Colombia, where former Tánaiste and Minister for Foreign Affairs and Trade, Mr. Eamon Gilmore, was appointed as EU Special Envoy for the Colombian Peace Process in 2015. My Department’s work sharing the experience of peacebuilding in Northern Ireland has been valued as a contribution by all sides in Colombia. In addition to this lesson sharing, Ireland contributes to the EU and UN trust funds for the Colombian Peace Process and also supports the UN Office of the High Commissioner for Human Rights in Colombia, the role of civil society and human rights defenders.
The new policy on international development which my Department is preparing will inform future investments which will continue to respond to existing needs, humanitarian crises and overall programme priorities. We will build on our longstanding development partnerships and cooperation in developing countries, including in Latin America and the Caribbean. Internal preparations and analysis are already underway, as are preparations for a consultation with external stakeholders. The independent work of the review of the Irish Aid programme currently being undertaken by the Oireachtas Joint Committee for Foreign Affairs and Trade (JCFAT) will also feed into development of the new policy.
136. Deputy Sean Sherlock asked the Tánaiste and Minister for Foreign Affairs and Trade the Exchequer funding earmarked for Tanzania through Irish Aid for 2018; and his views on the future policy of investment in Tanzania as it moves towards middle income status. [4072/18]
Amharc ar fhreagra€21 million has been allocated to Ireland’s bilateral programme in Tanzania in 2018, with additional funding of approximately €2 million allocated to Irish and international NGOs operating in Tanzania. The bilateral programme supports vulnerable groups such as women and youth in the areas of sustainable livelihoods, reproductive health and nutrition as well as strengthening democratic space and supporting refugees.
Tanzania has the fastest growing economy in the East African Community, with consistent growth rates of 7%. It has benefitted from growth in manufacturing, services, construction and tourism. With such rapid economic growth, the Tanzanian government has set a target of 2025 to reach middle income status. However, slow growth in agriculture, where the majority of the population make a living, coupled with significant population growth, mean that the benefits of growth are not widely distributed. Tanzania is still among the 25 poorest countries in the world with 28% of the mainland population (over 12 million people) living below the national poverty line, and 43% below the international poverty line.
This analysis informs decision making in targeting resources as part of Ireland’s development programming in Tanzania and explains the focus on supporting the vulnerable groups such as women and children. This is in line with the overarching strategy for my Department and one strand of our strong relationship with Tanzania which also includes a growing focus on trade and investment. The Irish Embassy in Tanzania will continue to work closely with Irish and Tanzanian businesses, and the relevant government agencies, to increase trade and business links between our countries.
137. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Foreign Affairs and Trade when the First Secretary post will be filled at the Irish Permanent Representation to OECD and UNESCO; and if he will make a statement on the matter. [4182/18]
Amharc ar fhreagraThe assignment and posting of officers to diplomatic missions overseas is an operational matter for the Department. Decisions are subject to a number of considerations including the matching of officers’ skills to posts and the staffing profile of missions, the Planned Postings Policy and wider staffing needs across the Department. Vacant positions abroad, including that referenced by the Deputy, are usually filled as part of the summer rotation. I am confident that missions abroad are adequately staffed currently to meet their key objectives although this is under continual review.
138. Deputy Kevin O'Keeffe asked the Tánaiste and Minister for Foreign Affairs and Trade the status of an application by a person (details supplied); and the reason for the delay in finalising the application. [4318/18]
Amharc ar fhreagraAs the Deputy will be aware, applications for entry into the Foreign Births Register is governed by the Irish Nationality and Citizenship Act 1956, and subsequent amendments, as well as the Foreign Births Regulations 2013. The duty of providing Irish citizenship to eligible individuals is a responsibility that my Department takes extremely seriously and all applications are thoroughly checked to verify the applicant’s entitlement to citizenship by descent.
While the Department aims to process all applications for Foreign Births Registration (FBR) within 6 months – where the application is complete and all supporting documents are submitted – it is not always possible to process applications within this timeframe as cases can vary significantly in terms of complexity.
The application in question is currently under active consideration. My Department is reviewing documentation supplied by the applicant. A determination will be made in due course and the applicant will receive a response thereafter.
139. Deputy Pearse Doherty asked the Tánaiste and Minister for Foreign Affairs and Trade if passport applications by persons (details supplied) will be processed in time for intended travel; and if he will make a statement on the matter. [4356/18]
Amharc ar fhreagraAverage processing times for all categories of passport applications are updated weekly on the Passport Service’s website, www.dfa.ie/passport. All passport applicants are advised to check the average processing time for their category of application before applying.
Applications for the persons named were registered with the Passport Service on 17 January 2018. Assuming that they are compliant with the Passports Act, 2008, these applications have a target issue date of 7 February 2018 (i.e. before the intended travel date stated).
While the Passport Service is not in a position to guarantee the issuance of passports for any given date, every effort is made to issue passports within target turnaround times. The applicants can continue to monitor the progress of their applications online at www.dfa.ie/passporttracking.
140. Deputy Pearse Doherty asked the Tánaiste and Minister for Foreign Affairs and Trade the public private partnerships his Department is engaged in; the name, cost and timeframe of each; the names of all private parties involved; the nature of each project in terms of design, build, maintain and so on, in tabular form; and if he will make a statement on the matter. [4436/18]
Amharc ar fhreagraMy Department is not currently engaged in any public private partnerships.
141. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Foreign Affairs and Trade the status of development of plans to protect data held by cross-Border bodies in the event of a hard Brexit; and if he will make a statement on the matter. [4444/18]
Amharc ar fhreagraThe Government is committed to advancing North South cooperation including through the work of the North South Implementation Bodies established under the British Irish Agreement. I do not have direct responsibility for any of these Bodies, as in this jurisdiction responsibility for them is exercised by my colleagues: the Minister for Culture, Heritage and the Gaeltacht (Waterways Ireland and the North/South Language Body which comprises Foras na Gaeilge and the Ulster Scots Agency), the Minister for Business, Enterprise and Innovation (InterTrade Ireland), the Minister for Communications, Climate Action and Environment (Loughs Agency); the Minister for Public Expenditure and Reform (Special EU Programmes Body); and the Minister for Health (Food Safety Promotion Board). In addition, Tourism Ireland, which also operates on an all-island basis, is the responsibility of the Minister for Transport, Tourism and Sport.
During phase one of the negotiations in regard to the UK’s withdrawal from the EU a number of cross-cutting issues which are regulated by EU law, including data protection, arose in the context of the North South Implementation Bodies.
The inclusion of a specific reference to the importance of protecting North/South co-operation in the joint report from the EU and UK negotiators, agreed in December, is a very welcome outcome from the Government’s efforts. The Government will continue to work with EU partners and the European Commission Task Force to ensure that the phase one commitments are delivered in full and that Ireland’s interests are advanced in the EU position in phase two, including the protection of North/South co-operation.
Phase Two will concentrate on three distinct but interrelated areas of work: 1) translating the principles and commitments agreed in phase one into the legally binding Withdrawal Agreement; 2) negotiating the arrangements for the transition period as a priority in phase two; 3) starting discussions on the framework for the future EU-UK relationship.
Work is already underway to agree the important transitional arrangements, which Ireland has been pushing for and are hugely important in giving certainty to individuals and businesses. We welcome that the European Council has proposed that the whole of the EU acquis will apply during the transition, which means that the status quo will be preserved with the aim of avoiding any gaps or cliff edge effects between the UK leaving the EU and when a future relationship agreement enters into force.
The issue of data protection will continue to be an important cross-cutting issue in the EU’s future relationship with the UK. In this context it is also relevant that the EU General Data Protection Regulation (GDPR) which will take effect from 25 May 2018 will transform data protection regulation in the EU, strengthening the data privacy rights of individuals and placing increased compliance and accountability obligations on organisations including the North South Bodies. Preparatory work undertaken by the Data Protection Commissioner has ensured that there is awareness of the GDPR through the publication of guidance materials, online media campaigns and proactive engagement with private and public sector organisations. It is welcome that the UK has indicated that it remains committed to fully implementing the GDPR in line with the May 2018 timetable.
The Department of Foreign Affairs and Trade is working closely with officials in all relevant Departments including the Department of Justice and Equality on an ongoing basis to ensure that the full range of challenges posed by Brexit, including in regard to data protection for the North-South Bodies, are considered and addressed throughout the negotiation process.
142. Deputy Michael McGrath asked the Minister for Finance the number of cases in which the local property tax surcharge of 10% was applied; the portion and value of the 2017 local property tax receipts that have come from the 10% surcharge; the number of cases in which the local property tax deferral has been opted for; the portion and value of the 2017 local property tax receipts that have come from the 4% deferral charge; and if he will make a statement on the matter. [3950/18]
Amharc ar fhreagraSection 38 of the Finance (Local Property Tax Act) 2012 (as amended) provides that property owners who fail to meet their LPT obligations will be surcharged when filing an Income Tax (IT), Corporation Tax (CT) or Capital Gains Tax (CGT) return.
The surcharge is set at 10% of the IT, CT, or CGT liability to a maximum of €63,485 and is in addition to the actual LPT liability plus any interest arising on foot of late payment. The surcharge is imposed from the date the IT, CT or CGT return is filed. Under certain conditions the surcharge can be reduced to equal the outstanding LPT liability. These conditions include situations where the surcharge is higher than the outstanding LPT liability, where the property owner files the LPT return or pays the outstanding liability either in full or on a phased basis.
Revenue has advised me that during 2017 it imposed almost 9,800 surcharges on foot of LPT non-compliance. The total value of the surcharges raised amounted to €3.7 million but almost 70% of this amount was mitigated following remedial action by the property owners. The remaining yield is attributed to IT, CT or CGT as appropriate and is not included in the LPT receipts.
Part 12 of the LPT Act provides for a deferral or partial deferral (50%) of LPT in certain circumstances. These circumstances include ‘Income Level’, ‘Hardship’, ‘Personal Insolvency’ and ‘Personal Representative of a Deceased Person’. Once granted, a deferral normally remains in place for the duration of the ‘valuation period’, which is currently 1 May 2013 to 31 October 2019. However property owners can opt to pay the outstanding liability at any time and discontinue with the deferral. Where a deferral is in place, the outstanding liability remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged on the deferred amount at a rate of 4% per annum.
Revenue has advised me that there are currently in excess of 62,000 properties with deferrals in place for one or more years. In 2017, payment was received in respect of 6,300 properties with deferrals in place amounting to €4 million. This represented 0.8% of the total LPT receipts for the year (€477 million).
143. Deputy Mick Wallace asked the Minister for Finance the number of whole-time equivalent district officers with responsibility for ensuring gaming machine licensing compliance employed in each district in each of the years 2010 to 2017. [4025/18]
Amharc ar fhreagraRevenue is an integrated tax and customs administration with compliance interventions being risk driven and deployment of staffing and other resources reviewed regularly in light of, inter alia, risk, the need to ensure operational effectiveness and emerging technological advancements. I am advised by Revenue that given its integrated approach to confronting non-compliance risk, it is not possible to disaggregate staffing resources deployed on the basis requested by the Deputy.
I am advised by Revenue that at present it has a specific compliance project underway as regards the gaming and amusement sector that includes visits to premises and examination of compliance matters. If the Deputy has any specific information as regards non-compliance that he wishes to bring to the attention of Revenue, those concerns can be examined as part of the current project.
144. Deputy Niall Collins asked the Minister for Finance his views on each recommendation (details supplied) as contained in the National Competitiveness Council report, Ireland’s Competitiveness Challenge 2017; his plans to implement the policy recommendations which he has statutory remit for; and the timeframe for implementation. [4049/18]
Amharc ar fhreagraIn response to the Deputy’s question, I have included the requested information below in relation to the recommendations supplied as contained in the latest National Competitiveness Council report “Ireland’s Competitiveness Challenge 2017”.
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Recommendation |
Response |
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Continue to implement a growth-friendly fiscal stance to further lower the government debt and deficit, reduce the risk of the economy overheating and to build buffers and enhance resilience to external shocks. |
The prudent economic and fiscal policies implemented over recent years have placed the public finances on a more sustainable path and have facilitated on-going economic growth. Ireland’s on-going commitment to meet our obligations under the Stability and Growth Pact will ensure continuing improvements in the debt and deficit ratios. The consolidation measures introduced after the financial and economic crisis led to a sharp reduction in capital investment. The 10 year capital plan will seek to address the ensuing deficits in infrastructural investment. Once major capital projects, boosting potential output and enhancing our competitiveness, have been completed, a debt ratio of 45 per cent of GDP will once again be targeted. A debt ratio lower than specified in the Stability and Growth Pact and the introduction of a Rainy Day Fund will enhance Ireland’s fiscal capacity and our ability to absorb external shocks to the economy. |
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Provide a clear statement on the scope and operational guidelines of the Rainy-Day Fund to serve as a counter-cyclical buffer to adverse shocks. |
The Oireachtas consultation process regarding the Rainy Day Fund (RDF) that I initiated through the publication of my consultation paper on Budget Day last October is still ongoing. My attendance at the Oireachtas Committee on Budgetary Oversight on Wednesday 31 January will provide a significant opportunity to exchange views on the RDF. Following that discussion and consideration by my Department further details on the operational modalities of the RDF will be published in due course. |
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Evaluate the effectiveness of SARP to ensure the scheme is meeting objectives and remains internationally competitive and accessible to enterprises based in Ireland including SMEs |
The Special Assignee Relief Programme (SARP) was introduced by my Department in Budget 2012, with the aim of reducing the cost to companies of assigning skilled individuals and key decision makers from abroad to take up positions in the Irish based operations of their employer or an associated company. A full review of SARP, including a public consultation, was undertaken by my Department and Revenue in October 2014. Subsequent changes were enacted in Budget 2015, which included a number of enhancements to the scheme. Revenue compiles data on the numbers of individuals availing of SARP on an annual basis. The most recent report on SARP compiled and published by Revenue, in respect of the 2015 tax year, highlights the uptake and cost of the scheme on an annual basis since its introduction, as set out in following table below** The consistent increase in the number of claimants and the associated cost of the scheme shows that it is being successful in attracting individuals to Ireland from other arms of Multi-National Enterprises. The report also indicates that the programme is reaching a broad range of industrial sectors, with assignees being spread across IT, Financial Services, Pharmaceutical and Medical, Consumer and Industrial, and Other services. As with all such schemes, SARP remains under review from budget to budget, and I will continue to engage with my colleagues in the Department of Business, Enterprise and Innovation in this regard. |
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Conduct a review of the Irish Tax System as it applies to SMEs and Small Mid-Caps to consider how its competitiveness could be enhanced in the context of Brexit. |
Three year corporation tax relief for start-up companies is an incentive to encourage new business start-up, and therefore create additional employment. This measure provides relief from corporation tax on trading income (and certain capital gains) of new start-up companies in the first three years of trading. This tax relief is due to expire in 2018 and therefore a review of the scheme will be undertaken this year, in line with the Department of Finance’s Tax Expenditure Guidelines. Furthermore, the Knowledge Development Box (KDB) (Certification of Inventions) Act 2017 introduced a new certification scheme to allow smaller companies avail of the KDB without the need to apply for a patent. This is intended to make the scheme more accessible to smaller companies who may not be able to avail of the KDB otherwise. My Department conducted a review of share-based remuneration in 2016 which led to the introduction in Finance Bill 2017 of a new Key Employee Engagement Programme (KEEP) share option incentive for employees of SME companies. The purpose of KEEP is to assist SME companies competing with larger businesses in recruiting and retaining key employees. Also, as I indicated last November, a review of the Employment & Investment Incentive (EII) will be completed in advance of Budget 2019, to ensure it operates as a competitive, efficient and effective measure in accordance with state aid rules and my Department’s Tax Expenditure Guidelines. |
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Consider further changes to the income tax system which will contribute to the decline in replacement rates as part of the Government’s consideration of income tax, and considering the factors encouraging take-up of employment. |
Deliberations in relation to potential income tax measures will take place over the next 9 months, in advance of Budget 2019 which I expect to deliver in October this year. As is the case for each Budget, deliberations in relation to income tax policy measures take into account a wide range of factors, including the distributional impact of tax measures on different household types across a range of income levels and financial incentives to work. For example, the Income Tax and USC Tax Strategy Group paper, produced in advance of the Budget each year and available on my Department’s website at www.finance.gov.ie/what-we-do/tax/the-tax-strategy-group/, contains an ex-ante equality impact assessment of possible changes to the income tax system. Where possible, taking into account the potential scope for income tax changes, this analysis also takes account of the impact of potential measures on financial incentives to begin work or increase hours worked. However I would also note that, when considering the impact of any Budget, it is necessary to consider the budget package in the round, looking at tax and welfare changes together, rather than at taxation measures alone. My Department, independently and in conjunction with other Departments, conducts a number of analyses to examine the distributional and work incentive impacts of possible Budget options and of the final Budget package (see for example www.welfare.ie/en/Pages/SocialImpact2017.aspx). These provide an evidence base on equality and work incentive issues which can be integrated alongside other budgetary considerations. |
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Consider extending the scope of the Foreign Earnings Deduction Scheme to all non-EEA countries. |
The Foreign Earnings Deduction (FED) scheme was introduced by my Department in Budget 2012 to incentivise individuals to seek expansion opportunities for trade into non-traditional export markets for Irish goods and services. The incentive was reviewed in 2014. This resulted in its extension in Budget 2015, with some additional enhancements. In Budget 2017, FED was extended until the end of 2020 in order to provide certainty for potential investors in Ireland, following on from the UK vote to leave the European Union. The question of extending the scope of FED to all non-EEA countries was considered recently in the run-up to Budget 2018. There has been a significant degree of broadening out of the relief in recent years and the full impact of these changes will take time to feed through. Also, such a broad extension to FED as proposed, even when viewed in the context of Brexit, would very likely result in significantly increased costs to the Exchequer, including deadweight costs. Accordingly, I do not intend to progress the proposed change to FED at this time. |
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Broaden the distribution capability and market coverage of the SBCI by adding new on-lenders and working to develop innovative products, thereby serving to drive competition in the SME finance market.
Continue to facilitate partnerships between SBCI and international lenders, especially in non-bank finance, to increase competition and provide alternative sources of finance for SMEs. |
The Strategic Banking Corporation of Ireland’s (SBCI) mission is to deliver effective financial supports to Irish SMEs and, in time, other sectors that address failures in the Irish credit market, while driving competition and innovation and ensuring the efficient use of available EU resources. The SBCI began lending in March 2015. The SBCI uses an on-lending model rather than lending directly, channelling its funds through lending partners, known as on-lenders. The SBCI currently has three bank and four non-bank on-lending partners. The SBCI is engaged with a range of potential on-lenders to broaden its distribution capability and market coverage, subject to robust due diligence processes designed to mitigate risks to Irish taxpayers while optimising funding to Irish SMEs. In October 2016, the SBCI took over operation and management of the Credit Guarantee Scheme (CGS) on behalf of the Minister for Business, Enterprise and Innovation. In 2017, the SBCI developed and delivered an enhanced Credit Guarantee Scheme. Additionally, the SBCI has been developing risk sharing guarantee products to enhance access to finance during the course of 2017. As announced in Budget 2017, the SBCI in conjunction with Department of Agriculture, Food and the Marine, rolled out a €150 million Agriculture Cashflow Support Loan scheme to provide working capital support to farmers to deal with price and income volatility. The SBCI is also tasked with delivering the €300m Brexit Loan scheme, as I announced in Budget 2018. The Scheme has been developed by the Department of Business, Enterprise and Innovation, the Department of Agriculture, Food and the Marine, and Enterprise Ireland. The SBCI engaged with the European Investment Fund (EIF) to utilise its Innovfin counter guarantee facility to support the Scheme. The purpose of the Scheme is to assist Irish SMEs and Small Midcap firms (less than 499 employees) affected by Brexit with their working capital needs to allow them to diversify and restructure their businesses and adapt and innovate in response to Brexit. The SBCI is continuing to work on a number of risk sharing initiatives, particularly the continued use of guarantees with European counter-guarantees to support lending by finance providers, which aim to address sectorial market failures and recognising the collateral limitations of SMEs and collateral obligations of banks. Risk sharing initiatives are open to banks and non-bank lenders. The SBCI’s engagement at a European level continues with regular discussion with the European Investment Bank Group (EIB and EIF) on new initiatives emerging under European Fund for Strategic Investment (EFSI). |
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Expedite the development of a commercial property price register encompassing data on commercial sales and leases. |
This is not a policy matter for the Minister for Finance. However, I would like to advise that there is a commercial leases register published by the Property Services Regulatory Authority. |
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Consider the development of an appropriate regulatory framework for the crowdfunding market (including peer-to-peer lending) to enhance consumer confidence and encourage increased lending activity. |
Crowdfunding is an emerging and innovative industry that is growing. The Irish crowdfunding market is nascent and comparatively small. Equally, while the European crowdfunding market has been growing it is still relatively small and growing at a relatively low rate. A public consultation on the potential regulation of crowdfunding was carried out by the Department of Finance in 2017. Based on the findings of the public consultation carried out, there was general support from the crowdfunding industry and stakeholders for the regulation of crowdfunding in Ireland and it was felt that regulation would be beneficial to both industry and consumers. The main concern was that regulation might be overly burdensome or onerous and stifle or hinder the development of the industry. Subsequent to the public consultation, the European Commission proposed a pan-European regulatory regime for crowdfunding in its 2018 work programme. The Department of Finance will monitor the progress and developments on this and implement European regulations as necessary. |
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Ensure the R&D tax credit and Knowledge Development Box incentives provide value for money and remain internationally competitive, accessible and relevant to evolving enterprise needs. |
My officials and I are cognisant of the need to monitor the cost and effectiveness of both the R&D Tax Credit and the Knowledge Development Box, as we do all tax expenditures. In accordance with the Department of Finance’s Tax Expenditure Guidelines, we are committed to undertaking regular reviews of all tax expenditures. The Department of Finance undertook a review of the R&D Tax Credit in 2016, which is available at the following link: www.finance.gov.ie/wp-content/uploads/2017/07/1610-R-and-D-Credit-Evaluation-2016.pdf |
** Table on SARP
|
Year |
No. of Employees |
Tax Cost of Relief |
|
2012 |
11 |
€0.1 million |
|
2013 |
121 |
€1.9 million |
|
2014 |
302 (+249%) |
€5.9 million |
|
2015 |
586 (+194%) |
€9.5 million |
145. Deputy Niall Collins asked the Minister for Finance his views on broadening the focus of the industry-led forum for consumer and business issues as recommended in the cost of insurance working group report. [4050/18]
Amharc ar fhreagraIn fulfilment of Recommendation 9 in the Action Plan of the Report on the Cost of Motor Insurance, Insurance Ireland set up the Business and Consumer Forum in March 2017 and invited relevant stakeholders to the first of its biannual meetings.
The Report recommends that the forum is “industry-led” and consequently this explains why Insurance Ireland as the main representative body for insurance providers - with 95% of those companies operating within the country being members - were tasked with organising it.
The first meeting of the Forum took place on 16 May 2017 concentrated on the motor insurance sector and was attended by representatives from:
- Insurance Ireland
- Department of Finance
- Central Bank of Ireland
- Financial Services Ombudsman
- Competition and Consumer Protection Commission
- Consumers’ Association of Ireland
The focus of the second meeting of the Forum then moved to the business sector. It was held on 10 January 2018 and a wide range of relevant stakeholders were invited to attend. The following stakeholders attended the Forum:
- Insurance Ireland
- RGDATA
- IBEC
- ISME
- Licensed Vintners’ Association
- Vintners Federation of Ireland
- Society of the Irish Motor Industry
Also invited but unable to attend the Forum was the Irish Hotels Federation and the Restaurant Association of Ireland.
Further meetings of the Forum will be organised by Insurance Ireland on a biannual basis and the particular focus of such meetings will be determined in due course.
It is believed that putting in place a structured approach for ongoing engagement between the insurance industry and relevant stakeholders will improve the quantity and quality of communication between providers and consumers, producing a deeper understanding of the pertinent sectorial issues on both sides.
On the basis of the above, I am satisfied that the focus of the Forum has been sufficiently broad to date as it has covered some of the main problem insurance areas, namely motor and business insurance. I believe its remit will continue to evolve over the next 12 months.
146. Deputy Clare Daly asked the Minister for Finance the number of secondees from businesses (details supplied) working in his Department and each other Department. [4141/18]
Amharc ar fhreagraI wish to inform the Deputy that there are no secondees from the businesses (details supplied) currently working in the Department of Finance.
However, in previous years the Department of Finance did have secondees from some of these businesses and those details can be found on the Department of Finance website at www.finance.gov.ie.
147. Deputy Maureen O'Sullivan asked the Minister for Finance if his attention has been drawn to the growing frustration of motorists who, despite the working group on motor insurance, have seen premiums continue to rise, particularly for older persons. [4149/18]
Amharc ar fhreagraAt the outset, the Deputy should note that it has been brought to my attention that some policyholders, particularly older persons, are continuing to experience increases in their insurance premiums in spite of the fact that prices are generally in decline. My officials have received representations on this topic, while there also have also been a number of Parliamentary Questions tabled.
While, neither I nor the Central Bank can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on the risks they are willing to accept, my officials have discussed this matter with Insurance Ireland previously. In response they indicated that they had not discerned a particular trend from their helpline enquiries in relation to this issue.
Insurance Ireland has also pointed out that in making their individual decisions on whether to offer cover and what terms to apply, insurers will aside from a person’s age, use a combination of other rating factors, which include the age and type of the vehicle, the relevant claims record and driving experience, the number of drivers, how the car is used, etc. They have also advised that insurer’s do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, to the above factors, insurance companies will price in accordance with their own past claims experience.
I have asked my officials to follow up again with Insurance Ireland in order to try and get a more detailed perspective on this matter.
Finally, it may be of interest to the Deputy that the Competition and Consumer Protection Commission website has an informative section regarding the purchase of car insurance, and one of the key tips listed to help cut costs is to “shop around” and to “always get quotes from several insurance providers when you need to get or renew insurance”. The relevant website address is:
www.ccpc.ie/consumers/money/insurance/car-insurance/.
148. Deputy Maureen O'Sullivan asked the Minister for Finance if he has had discussions recently with a group (details supplied) regarding continued difficulties faced by persons in Dublin 3 obtaining home insurance due to the fact they live in areas of flooding but parts of which were never flooded; and the locations in which extensive flood prevention works have been carried out. [4150/18]
Amharc ar fhreagraI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years.
However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are willing to accept. Consequently, neither the Government nor the Central Bank can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
development and implementation of plans by the OPW to implement flood relief schemes, and
improving channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in marginal areas.
The above approach is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland, which provides for the exchange of data in relation to completed flood defence schemes which should provide a basis for the increased provision of flood insurance in areas where works have been completed. In this regard, the Insurance Ireland/OPW working group, which the Department of Finance attends, now meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.
While I have not discussed the issue of flooding in Dublin 3 directly with Insurance Ireland, my officials on the aforementioned working group are in regular contact with both Insurance Ireland and the OPW regarding proposed and completed flood defence schemes and how the levels of insurance cover might be improved in areas where flood defence works have been completed.
You should also note that I have been advised by the OPW that in relation to the schemes located in Dublin 3 (The Tolka - East Wall Scheme, the Tolka - Hawthorne Terrace Scheme, and elements of the Tolka - Richmond Road Scheme) that all have been built to the 1/100 year standard, and that information in relation to these schemes has been shared with Insurance Ireland under the Memorandum of Understanding. I have also been informed that Dublin City Council are currently progressing flood relief works in Dublin 3.
Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.
149. Deputy Joan Burton asked the Minister for Finance the status of the public banking investigation undertaken by his Department in conjunction with the Department of Rural and Community Development; and if he will make a statement on the matter. [4155/18]
Amharc ar fhreagra166. Deputy Alan Kelly asked the Minister for Finance the status of the public banking investigation undertaken by his Department in conjunction with the Department of Rural and Community Development; and if he will make a statement on the matter. [4309/18]
Amharc ar fhreagra168. Deputy Willie Penrose asked the Minister for Finance further to Parliamentary Question No. 11 of 30 November 2017, the progress of the public banking investigation; when the report by his Department and the Department of Rural and Community Development will be published; and if he will make a statement on the matter. [4042/18]
Amharc ar fhreagraI propose to take Questions Nos. 149, 166 and 168 together.
As the Deputy is aware, my Department, along with the Department of Rural and Community Development are assigned the responsibility of fulfilling the Programme for a Partnership Government commitment to "thoroughly investigate the German Sparkassen model for the development of local public banks that operate within well-defined regions".
Local public banking means that there is state or some other form of public ownership of a bank or other financial institution. Sparkassen are German local public banks. They are only permitted to operate in particular geographic regions local to them. Their business model is to promote economic development and financial inclusion in the particular regional area in which they operate, not just profit maximisation. Part of this business model also includes building close relationships with SMEs in their region of operation.
As part of the investigation of local public banking, a consultation process involving engagement with stakeholders and interested parties was conducted last year by the Department of Rural and Community Development, with assistance from my Department.
The investigation has also included an analysis of a proposal for a potential model of local public banking, based on the German model, in Ireland. This proposal was put forward by Irish Rural Link and the Savings Banks Foundation for International Cooperation (SBFIC), the international development wing of the Sparkassen group. Officials in my Department, and the Department of Rural and Community Development, have met with representatives from Irish Rural Link and SBFIC on a number of occasions.
Officials in both departments have been working closely together and have finalised a report on their investigation on local public banking. My colleague, the Minister for Rural and Community Development, Michael Ring T.D., and I are currently considering the report. We anticipate being able to jointly submit the report to Government, for approval, in the near future.
There are significant Government measures in place to support Irish SMEs and my Department is working with other Government departments to develop tailored and innovative schemes to meet their needs. The Deputy may rest assured that supporting access to finance by Irish SMEs and promoting rural employment development remains an important Government priority.
150. Deputy Joan Burton asked the Minister for Finance his plans to bring forward legislation to ensure stronger protection for customers of banks and punishment for bankers misleading and lying to their customers; and if he will make a statement on the matter. [4156/18]
Amharc ar fhreagraOn a number of occasions recently I have made clear that I will consider any proposals from the Central Bank for additional powers, should it request them. Notwithstanding that, the Central Bank already has considerable powers to protect customers of financial institutions and punish regulated entities which mislead or lie to their customers.
The Central Bank’s Consumer Protection Code provides that
“A regulated entity must ensure that in all its dealings with customers and within the context of its authorisation it:
2.1 acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market;
2.2 acts with due skill, care and diligence in the best interests of its customers;
2.3 does not recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service…”
The Central Bank can impose sanctions on regulated entities which breach this Code.
I should point out that the Code also provides that “A regulated entity must have written procedures in place for the effective handling of errors which affect consumers.” The Code also specifies the procedures to be followed in the event of a complaint.
When the complaint is finalised, the Code requires that the consumer be informed that they can refer the matter to the Financial Service and Pensions Ombudsman. If a consumer is not satisfied with the outcome of a complaint, I would strongly advise them to pursue a complaint with the Financial Services and Pensions Ombudsman.
As I announced in December, I propose to increase the compensation amount which may be awarded by the Ombudsman to €500,000 in order to ensure the Ombudsman can fully compensate those most severely impacted by the appalling behaviour of the banks. Such a large increase in the compensation payments capability of the Financial Services Ombudsman will also serve as a clear indication to the banks that unacceptable behaviour towards customers will not be tolerated and that when it happens, they will have to compensate customers appropriately.
The Tracker Mortgage Examination highlighted that significant cultural issues and challenges remain in some of the retail banks and that customer interests have not been sufficiently protected or prioritised. Section 6A of the Central Bank Act, 1942, as amended, provides that I, as Minister, may consult with the Governor of the Central Bank in relation to our respective functions. To this end, I wrote to the Governor on last November, requesting that the Central Bank undertake an assessment of the current cultures and behaviours and associated risks in Irish retail banks, and the actions that may be taken to ensure that banks prioritise customer interests in the future.
Work on this report is underway, and is due to be finalised by end-June 2018. The findings of the report will determine whether any additional legislative or regulatory changes are required to enhance accountability in the banks and ensure the safeguarding and prioritisation of consumer interests.
