Written Answers Nos. 62-86
62. Deputy Bernard J. Durkan asked the Minister for Finance his plans to address the issue of large scale home repossessions perpetrated by unregulated third party lenders; and if he will make a statement on the matter. [11487/18]
Amharc ar fhreagraAs the Deputy will be aware, the Consumer Protection (Regulation of Credit Servicing) Act 2015 (“the 2015 Act”) was introduced in July 2015 to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. Credit Servicing Firms are typically firms that manage or administer credit agreements such as mortgages or other loans on behalf of unregulated entities.
Under the 2015 Act, if the firm who bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’. Loans can be sold by regulated entities to entities that are not regulated by the Central Bank of Ireland (the Central Bank).
Credit servicing firms must act in accordance with the requirements of Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections that they had prior to the sale, including under the various Statutory Codes of Conduct issued by the Central Bank.
A Government Decision last week agreed to support the FF Private Members Bill in relation to the regulation of loan owners. The Government will work with Deputy McGrath and the House to improve the Bill, with a view to addressing any difficulties that might arise with it as currently drafted.
The Code of Conduct on Mortgage Arrears (CCMA) is a key part of the Central Bank’s Consumer Protection framework. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms with each borrower by reference to that borrower’s individual circumstances, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner by reference to that’s borrower’s individual circumstances.
Regulated entities, including credit servicing firms servicing loans on behalf of unregulated loan owners, are all required to comply with the CCMA. The overriding objective of the CCMA is to ensure the fair and transparent treatment of consumers in mortgage arrears or pre-arrears, and that due regard is had to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits. The CCMA recognises that it is in the interests of borrowers and regulated firms to address financial difficulties as speedily, effectively and sympathetically as circumstances allow. It sets out the mortgage arrears resolution process (MARP), a four-step process that regulated entities must follow:
Step 1: Communicate with borrower;
Step 2: Gather financial information;
Step 3: Assess the borrower’s circumstances; and
Step 4: Propose a resolution
Each regulated entity must consider the borrower’s situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA includes requirements that arrangements be sustainable and based on a full assessment of the individual circumstances of the borrower and that repossession be used only as a last resort. The CCMA does not prescribe the solution which must be offered. A regulated entity may only commence legal proceedings for repossession where the firm has made every reasonable effort under the CCMA to agree an alternative repayment arrangement with the borrower or his/her nominated representative, and the specific timeframes set out in the CCMA have been adhered to or the borrower has been classified as not co-operating.
Details on the protections and options available to a borrower under Irish personal insolvency legislation can be found at isi.gov.ie, should this be of relevance. This aspect of the framework of protections for individuals (including mortgage borrowers) is overseen by the Insolvency Service of Ireland, not the Central Bank.
Following on from last weeks Government Decision as mentioned above, I have also asked the Central Bank to carry out a review of the Code of Conduct on Mortgage Arrears (CCMA) to ensure it remains as effective as possible and for the review to be completed as soon as possible.
Finally in relation to repossessions by those who purchase loan books (non-Banks), the following Central Bank data will be of interest to the Deputy.
- In 2015, the total Principal dwelling house (PDH) properties repossessed by Banks was 1,535, this was made up of 1,299 by Banks and 236 by Non-Banks.
- In 2016, the total PDH properties repossessed by Banks was 1,693, this was made up of 1,452 by Banks and 241 by Non-Banks.
- In 2017 (up to end September), the total PDH properties repossessed by Banks was 1,106, this was made up of 982 by Banks and 124 by Non-Banks.
Across state agencies, there are numerous bodies and processes in place to assist those in mortgage arrears in the hope of avoiding repossession. The Abhaile service has been established and offers help to borrowers in arrears to find the best solutions and keep them, if possible, in their own homes. This is assisting borrowers, particularly those in longer term arrears. A dedicated adviser will work with borrowers in arrears and their lender to find the best solution for them. Borrowers can get free advice from an expert financial adviser who can help them to work through their financial situation. An Expert adviser could be from MABS or a Personal Insolvency Practitioner (PIP) or an accountant. Borrowers may also need legal advice and under Abhaile they can have a free meeting with a solicitor. If called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. A MABS staff member will also be present at court to help them.
A Helpline is available Monday to Friday and a face-to-face service which is completely free, confidential and independent is also available in more than 60 MABS locations nationwide.
63. Deputy Bernard J. Durkan asked the Minister for Finance when he will introduce statutory rules appertaining to the code of conduct applicable to primary and secondary lenders or their agents with a view to ensuring the protection of families that continue to pay their mortgage to the best of their ability or those that can demonstrate an ability to so do and the need to ensure that the housing crisis is not further exacerbated by the activities of venture capitalists with negative consequences of a social and economic nature; and if he will make a statement on the matter. [11488/18]
Amharc ar fhreagraAs the Deputy will be aware, most loan agreements include a clause that allows the original lender to sell the loan on to another firm.
The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (the 2015 Act) was introduced to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. Under the 2015 Act, if the firm that bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’ which is regulated by the Central Bank. Credit Servicing Firms are typically firms that manage or administer credit agreements such as mortgages or other loans on behalf of unregulated entities.
Credit servicing firms must act in accordance with the requirements of Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections that they had prior to the sale, including under the various statutory Codes of Conduct issued by the Central Bank such as the Code of Conduct on Mortgage Arrears 2013 (CCMA).
As you know, a Government Decision last week agreed to support the FF Private Members Bill in relation to the regulation of loan owners. The Government will work with Deputy McGrath and the House to improve the Bill, with a view to addressing any difficulties that might arise with it as currently drafted.
Within the remit of the Central Bank’s responsibilities for safeguarding stability and protecting consumers, its approach to mortgage arrears resolution is focused on ensuring the fair treatment of borrowers through a strong consumer protection framework and ensuring that lenders have appropriate arrears resolution strategies and operations in place.
The Code of Conduct on Mortgage Arrears (CCMA) forms part of the Central Bank’s Consumer Protection Framework. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner.
Banks, retail credit firms and credit servicing firms servicing loans on behalf of unregulated loan owners are all required to comply with the CCMA. The overriding objective of the CCMA is to ensure the fair and transparent treatment of consumers in mortgage arrears or pre-arrears, and that due regard is had to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits. The CCMA recognises that it is in the interests of borrowers and regulated firms to address financial difficulties as speedily, effectively and sympathetically as circumstances allow. It sets out the Mortgage Arrears Resolution Process (MARP), a four-step process that regulated entities must follow:
Step 1: Communicate with borrower;
Step 2: Gather financial information;
Step 3: Assess the borrower’s circumstances; and
Step 4: Propose a resolution
Each regulated entity must consider the borrower’s situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA does not prescribe the solution which must be offered.
Under the CCMA, a regulated entity may only commence legal proceedings for repossession where it has made every reasonable effort to agree an alternative repayment arrangement (ARA) with the borrowers and other clear requirements are met or the borrower has been classified as not co-operating.
This framework requires lenders to exhaust the options available from the suite of ARAs offered before taking action which may result in the borrower losing his/her home (whether by voluntary sale or repossession).
During the legal process, borrowers have opportunities to re-engage with lenders to find a solution. In some circumstances, however, loss of ownership may be unavoidable.
Ensuring that the interests of consumers of financial services are protected is a key priority for the Government and for the Central Bank. A key element of the Central Bank’s role is ensuring that the consumer protection regulatory framework is fit for purpose and ensures that consumers best interests are protected.
Finally, following on from last weeks' Government Meeting, I have asked the Central Bank to carry out a review of the Code of Conduct on Mortgage Arrears (CCMA) to ensure it remains as effective as possible and for the review to be completed as soon as possible.
65. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the availability of working capital is being addressed with particular reference to the needs of SMEs; and if he will make a statement on the matter. [11490/18]
Amharc ar fhreagraSupporting the availability of working capital for SMEs is a significant element of Government policy in our efforts to rebuild the economy and bring back jobs. Government is focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. In this regard the Government has developed a number of initiatives to ensure that the supply of credit in the market is sufficient to meet the existing and future working capital needs of SMEs.
In terms of monitoring the working capital requirements for SMEs, my Department commissions biannual surveys to ascertain the demand for credit by SMEs. I would draw the Deputy's attention to the Department of Finance SME Credit Demand Survey just published, covering the period April to October 2017, which can be found at www.finance.gov.ie .
The results of this survey show that, when pending applications are excluded, 88% of credit applications to banks were approved or partially approved. Working capital/cash flow requirements are provided as the main reason for applying for bank finance with 38% stating this is why they requested bank finance. When asked about sources of finance for working capital, internal funds/retained earnings were the main finance source of working capital with 81% of working capital coming from this source (up 8% since Sept. ‘16).
A key objective of the Strategic Banking Corporation of Ireland (SBCI) is to ensure that SMEs can access low cost flexible loans from a variety of sources. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank on-lending partners and four non-bank on-lending partners. To the end of December 2017, the SBCI has supported loans totalling €925 million to 22,928 Irish SMEs employing 119,533 people and working capital made up over 11 percent of lending issued.
The Microenterprise Loan Fund, administered by Microfinance Ireland, is an additional source of credit that provides loans for up to €25,000 to start-up, newly established, or growing micro enterprises employing few than ten people. Up to the end of Q3 2017, €21m in loans have been approved, supporting 3,336 jobs.
The Credit Review Office is another government initiative that helps SMEs who have had an application for credit of up to €3 million declined or reduced by the main banks, and who feel that they have a viable business proposition. This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Review Office overturns more than 50% of lenders decisions in the appeals it receives.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. I can assure the Deputy that my Department, working with other relevant Departments, Bodies and Agencies, such as the Credit Review Office, will continue to advance policies to ensure the availability of both bank and non-bank credit so as to ensure that viable Irish SMEs have sufficient access to finance for working capital.
66. Deputy Louise O'Reilly asked the Minister for Finance if his attention has been drawn to a report (details supplied) regarding a group in view of the similar allegations being made here. [11494/18]
Amharc ar fhreagraI am aware of the report referred to and I can confirm that while the Central Bank of Ireland cannot generally comment on interactions with regulated firms, Ulster Bank Ireland D.A.C. (“UBI”) is engaging with the Central Bank in relation to Global Restructuring Group (GRG).
In November 2016, Royal Bank of Scotland (RBS) announced a complaints process and refund of complex fees for SME customers in GRG and indicated publically that “a customer is in-scope for the new complaints process if they were a small or medium sized enterprise under the control of GRG in the United Kingdom or Republic of Ireland between 1 January 2008 and 31 December 2013”.
In line with its risk-based supervisory approach, the Central Bank has been and continues to monitor all relevant issues as they arise from a system perspective. The Central Bank will continue to monitor this matter and is overseeing complaints received by UBI for any issues arising.
The Central Bank also continues to engage with the FCA on this matter.
I am confident that the Central Bank will act as appropriate on this matter and that it possesses the necessary tools to do so if required.
67. Deputy Michael McGrath asked the Minister for Finance if he has satisfied himself that the Central Bank’s consumer protection code, code of conduct on mortgage arrears and code of conduct for business lending to small and medium enterprises are all on a statutory basis and are not voluntary; and if he will make a statement on the matter. [11515/18]
Amharc ar fhreagraI am informed by the Central Bank that the Central Bank’s Consumer Protection Code 2012 is a statutory Code issued pursuant to powers under the following legislation:
(a) Section 117 of the Central Bank Act 1989;
(b) Section 23 and Section 37 of the Investment Intermediaries Act 1995;
(c) Section 8H of the Consumer Credit Act 1995; and
(d) Section 61 of the Insurance Act 1989.
The Central Bank has the power to administer sanctions for a contravention of the Consumer Protection Code, under Part IIIC of the Central Bank Act 1942. The provisions of the Consumer Protection Code are binding on regulated entities and must, at all times, be complied with when providing financial services.
The Code of Conduct on Mortgage Arrears 2013 (CCMA) is a statutory Code issued under Section 117 of the Central Bank Act 1989. The Central Bank has the power to administer sanctions for a contravention of this Code, under Part IIIC of the Central Bank Act 1942. Regulated entities must comply with the CCMA as a matter of law. The CCMA applies to the mortgage lending activities of all regulated entities operating in the State. I have requested the Central Bank to carry out a review of the CCMA to ensure it remains as effective as possible and have asked that the report be completed as soon as practically possible.
The Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015 (the SME Regulations) came into effect and apply to regulated entities, except credit unions, since 1 July 2016. For credit unions the Regulations came into effect on 1 January 2017. The Regulations replaced the existing Code of Conduct for Business Lending to Small and Medium Enterprises 2012 . The SME Regulations were issued by the Central Bank in exercise of the powers conferred by Section 48 of the Central Bank (Supervision and Enforcement) Act 2013. The SME Regulations must be complied with by regulated entities as a matter of law.
68. Deputy Maureen O'Sullivan asked the Minister for Finance his role in requiring commercial bodies such as the insurance industry to make sure that home owners are not discriminated against in terms of home insurance due to where they live, particularly in relation to areas deemed flood prone. [11520/18]
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 why 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.
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.
69. Deputy Michael McGrath asked the Minister for Finance the progress of the report on limiting tax reliefs on losses carried forward for banks; when the report will be completed and published; and if he will make a statement on the matter. [11534/18]
Amharc ar fhreagraAt Committee Stage of Finance Act 2017 I agreed that my officials will produce a report on the effect on limiting tax reliefs on losses carried forward for banks. It is envisaged that this report will be submitted to the FinPer Committee in June 2018.
70. Deputy Michael McGrath asked the Minister for Finance the position in terms of the relationship frameworks with each of the State supported banks when it comes to executive and management pay limits and bonuses including share based bonuses for management and executives; if he must be consulted if one of the banks wishes to change the limit or the ban on bonuses; if he has the power to grant or reject the removal of pay limits or bonuses; and if he will make a statement on the matter. [11535/18]
Amharc ar fhreagraAs the deputy is aware, AIB agreed to comply with certain covenants in relation to remuneration as part of its recapitalisation agreements with the State. The relationship framework agreement which was subsequently put in place requires the bank to comply with the remuneration covenants contained in the State agreements and details how related consent requests should be submitted and dealt with.
The deputy will be aware that the policy on banking remuneration of successive Government’s since the crisis has remained the same. There are extensive restrictions in place, but in summary they restrict total remuneration to €500,000 (ex a standard pension contribution) while no bonuses are permitted.
Any bonus or incentive scheme, be it cash or share based, approved by the Minister for Finance would still be subject to the excess bank remuneration charge and the power to change that rests with Dail Eireann.
Finally, I have no current plans to make any changes to our remuneration restrictions.
71. Deputy Michael McGrath asked the Minister for Finance when the Central Credit Register will be fully operational; the steps that have been taken to date in its implementation; if personal contract plans will be included on the register along with other hire purchase agreements; and if he will make a statement on the matter. [11536/18]
Amharc ar fhreagraThe Central Bank has advised that the Central Credit Register (CCR) is being implemented on a phased basis with phase 1 focusing on lending to consumers and phase 2 focusing on moneylenders, local authorities and business lending.
The period for initial data submission by lenders for phase 1 ran from 30 June 2017 to 31 December 2017, and lenders are now submitting data on a monthly basis. The Bank is in the process of reviewing the quality of the data received from all lenders during phase 1, and once it is satisfied with the quality of the data, credit reports will then be available for consumer borrowers and lenders. The Central Bank anticipates that this will be within the next fortnight. The website www.centralcreditregister.ie will be updated with the exact date from when credit reports will become available, together with information on how a consumer can make a request for their credit report and the types of identification documents that will be required.
In respect of phase 2, the period for initial data submission by the relevant lenders will run from 30 March 2018 to 30 September 2018.
As previously indicated, last year the Central Bank became aware that the wording used in the Credit Reporting Act to exclude data on trade credit agreements from being reported to the CCR also inadvertently excluded data on hire purchase, personal contract plans and similar types of credit agreements where the lender remains the owner of the goods financed. A legislative proposal to address this lacuna is being worked on and will be brought forward in the very near future.
72. Deputy Michael McGrath asked the Minister for Finance the number of personal contract plan providers here; the number and value of PCPs in existence; the number and value of PCPs that are behind on their payments; and if he will make a statement on the matter. [11537/18]
Amharc ar fhreagraAs I stated previously in a reply to a question regarding this issue on 14 December, Personal Contract Plans (PCP) are a form of Hire Purchase and both the Central Bank and the Competition and Consumer Protection Commission (CCPC) have certain functions and legal powers in relation to the provision of hire-purchase agreements.
In 2017 the CCPC undertook the first comprehensive study of the PCP market in the State. As part of its study the CCPC issued detailed questionnaires to all the financial institutions that underwrite PCP finance in the State. This allowed the CCPC to compile, for the first time, primary data relating to the number and value of PCP finance contracts issued. The report was published on Tuesday last and is available at www.ccpc.ie.
In the State PCP finance is underwritten by standard financial institutions, manufacturer banks, and special purpose institutions which exclusively offer motor finance. Up to 1 August 2017 there were 6 financial institutions underwriting PCP contracts: Allied Irish Bank (AIB), Bank of Ireland Leasing Ltd.t/a Ford Credit, Bank of Ireland Finance, Volkswagen Bank GMBH Branch Ireland, RCI Bank and Services, First Auto Finance Ireland Limited, BMW Financial Services (Ireland) DAC trading as BMW Financial Services. Toyota Motor Group recently established Toyota Financial Services (Ireland) in Dublin.
The majority of PCP contracts (88%) are for new cars.
The following table presents the total number of PCPs issued for both new and second hand cars and the total value (€m) of PCP finance for 2015, 2016 and for 2017 up to 1 August 2017:-
|
Year |
2015 |
2016 |
2017(YTD) |
|
Number of PCPs issued |
21,045 |
32,739 |
24,837 |
|
Total value (€m) of PCP finance |
€488 |
€805 |
€619 |
The following table shows the level of arrears and defaults on PCP finance for 2015, 2016 and for 2017 up to 1 August 2017:-
|
Year |
2015 |
2016 |
2017(YTD) |
|
Arrears |
1.1% |
1.2% |
2.0% |
|
Defaults |
0.4% |
0.3% |
0.2% |
73. Deputy Michael McGrath asked the Minister for Finance the number and value of enforcement fines made against licensed credit institutions in each of the years 2013 to 2017 and to date in 2018; the number and value of enforcement fines made against retail credit firms in each of the years 2013 to 2017 and to date in 2018; the number and value of enforcement fines made against credit servicing firms in each of the years 2015 to 2017 and to date in 2018; and if he will make a statement on the matter. [11538/18]
Amharc ar fhreagraI am informed by the Central Bank that since 2006, 117 cases have been concluded through the Administrative Sanctions Procedures and settlement procedure. This has resulted in the sum of €61,608,525 being imposed by way of monetary sanctions. Statements on the Central Bank’s settled Administrative Sanctions Procedures cases are available publicly on the Central Bank’s website.
The Central Bank have provided the following table which outlines the number and value of enforcement fines made against licensed credit institutions in each of the years 2013 to 2017 and to date in 2018; the number and value of enforcement fines made against retail credit firms in each of the years 2013 to 2017 and to date in 2018; and the number and value of enforcement fines made against credit servicing firms in each of the years 2015 to 2017 and to date in 2018. I would highlight that Credit Servicing firms were not regulated prior to 2015, when they came under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015.
|
Year |
Credit Institutions |
Credit Institutions |
Retail Credit Firms |
Retail Credit Firms |
Credit Servicing Firms |
Credit Servicing Firms |
|
|
Number |
Fines |
Number |
Fines |
Number |
Fines |
|
2018 |
0 |
€0 |
0 |
€0 |
0 |
€0 |
|
2017 |
2 |
€5,425,000 |
0 |
€0 |
0 |
€0 |
|
2016 |
2 |
€4,725,000 |
1 |
€4,500,000 |
0 |
€0 |
|
2015 |
1 |
€5,000,000 |
0 |
€0 |
0 |
€0 |
|
2014 |
3 |
€4,465,000 |
0 |
€0 |
N/A |
N/A |
|
2013 |
2 |
€1,040,000 |
0 |
€0 |
N/A |
N/A |
74. Deputy Michael McGrath asked the Minister for Finance the number of applications made for declined insurance in each year since 2014 and in each month in 2018; the number of applications accepted for declined insurance in each year since 2014 and in each month to date in 2018; and if he will make a statement on the matter. [11540/18]
Amharc ar fhreagraAt the outset, the Deputy should note that as Minister for Finance, I am not responsible for the operation of the Declined Cases Agreement and therefore I do not have direct access to the data that is being requested.
However, my officials made contact with Insurance Ireland about the information request. In response Insurance Ireland have provided me with statistics on the number of cases they have dealt with which are set out in the following table. I understand the figures for the first quarter of this year will be available in April 2018.
In relation to these cases Insurance Ireland has informed me that all applications made to them were accepted for processing under the Declined Cases Agreement. They have also stated that a quotation was secured for the applicants in question through the Agreement and that they therefore consider all applications to have been successful.
|
Year |
Total |
|
2014 |
669 |
|
2015 |
1164 |
|
2016 |
1941 |
|
2017 |
1423 |
It should be noted that the Cost of Insurance Working Group recommended the Declined Cases Agreement should be made more transparent under the Report on the Cost of Motor Insurance. On foot of this recommendation, Insurance Ireland submitted a report on the operation of the Agreement to my Department in July 2017. In the report, Insurance Ireland states that it “believes that the time may be correct for a review of elements” of the Agreement. My Department accepted this proposal and has since hosted two workshops with relevant stakeholders who are examining what elements of the Agreement need to be amended or refined. I understand further workshops will take place throughout 2018.
75. Deputy Pearse Doherty asked the Minister for Finance if the proposed deferred share bonus scheme of a bank (details supplied) would be subject to the excess bank remuneration charge of 45%; if a change to the taxation of non-standard performance related bank remuneration for the bank's executives would require legislative changes; and if he will make a statement on the matter. [11560/18]
Amharc ar fhreagraAs the deputy is aware Section 531AAD of the Taxes Consolidation Act 1997 provides for a charge on non "regular salary or wages" that exceed €20,000, paid to employees of financial institutions that received financial support from the State under the Credit Institutions (Financial Support) Act 2008.
This charge, the "excess bank remuneration charge", is incorporated into the Universal Social Charge and applies in all respects as if it was USC except that it is charged at a higher rate of 45%. The charge applies for 2011 and subsequent tax years.
I can therefore confirm to the deputy that this variable pay or bonus tax would apply to any remuneration which is variable including an award in shares. The power to alter the excess bank remuneration charge rests with Dail Eireann.
For the avoidance of doubt I have no current intention to lift any of the remuneration restrictions that are in place for the banks.
76. Deputy Michael McGrath asked the Minister for Finance if he has undertaken an assessment of the economic impact of recent adverse weather conditions; his plans to review projections for economic growth for 2018 in view of recent adverse weather conditions; and if he will make a statement on the matter. [11615/18]
Amharc ar fhreagraThe recent adverse weather conditions had a substantive impact on our country, affecting both day to day life in society and activity in our economy. Many businesses took prudent measures to ensure the health and safety of customers and staff and closed their businesses for a number of days.
This is likely to have had some adverse impact on the Irish economy, but it is not yet possible to quantify the extent of that impact. Furthermore, the overall affect will depend on the extent to which economic activity was deferred until the adverse weather had passed.
The retail sector in particular is likely to have been negatively affected as a result of the weather conditions and this may be reflected in the Retail Sales Index for March. Fortunately, retail sales have been robust over the last year, with 'core' retail sales increasing by 7 per cent on an annual basis in 2017. This growth has been driven by rising household incomes and sustained consumer confidence and these factors will help to mitigate the short term impact of the adverse weather conditions.
Households, along with businesses and the public sector, will also have incurred additional expenditure, given the additional heating and lighting costs along with the added costs of repairs and maintenance as a result of the weather.
As set out in Budget 2018, The Department of Finance estimated real GDP growth of 3.5 per cent in 2018. These forecasts were endorsed by the Irish Fiscal Advisory Council (IFAC). The Department will publish updated forecasts in April with the Stability Programme Update 2018.
77. Deputy Michael McGrath asked the Minister for Finance the status of a restructuring arrangement, in relation to both a PDH and BTL mortgage, entered into by a person with their original lender in the event of the mortgage being sold to an unregulated loan owner; the position that applies if the restructuring arrangement expires or has a review clause during the tenure of the ownership of the unregulated loan owner; and if he will make a statement on the matter. [11636/18]
Amharc ar fhreagraI am informed by the Central Bank that most loan agreements include a clause that allows the original lender to sell the loan on to another firm.
The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (the 2015 Act) was introduced to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. Under the 2015 Act, if the firm that bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’ which is regulated by the Central Bank, and must comply with the provisions of the Code of Conduct on Mortgage Arrears (CCMA) and the Consumer Protection Code.
The CCMA applies to the mortgage loan of a borrower which is secured by his/her primary residence. When the original lender sells or transfers a loan, the borrower is still entitled to the protections of the CCMA and the Mortgage Arrears Resolution Process (MARP) must continue to be followed by the credit servicing firm.
If a loan is restructured by the original lender, the restructured arrangement should be continued after the sale of the loan and the next steps of the MARP process applied.
The CCMA also provides that alternative repayment arrangements are reviewed at intervals that are appropriate to the type and duration of the arrangement, including at least 30 calendar days in advance of an alternative repayment arrangement coming to an end. A lender must also carry out a review of an alternative repayment arrangement at any time, if requested by the borrower.
The arrears handling provisions in Chapter 8 of the Central Bank’s Consumer Protection Code apply in respect of loans held by a personal consumer to which the CCMA does not apply.
When the original lender sells or transfers a loan, the borrower is still entitled to the protections of the Consumer Protection Code, which must be complied with by the credit servicing firm.
If a loan is restructured by the original lender, the restructured arrangement should be continued after the sale of the loan.
As the Deputy will be aware, the Government decided last week to support the FF Private Members Bill in relation to the regulation of loan owners. The Government is committed to working with you, Deputy McGrath and the House to improve the Bill, with a view to addressing any difficulties that might arise with it as currently drafted. I have also asked the Central Bank to carry out a review of the Code of Conduct on Mortgage Arrears (CCMA) to ensure it remains as effective as possible and for the review to be completed as soon as possible.
78. Deputy Clare Daly asked the Minister for Finance when he plans to restore tax relief for trade union membership subscriptions in line with a similar provision is in place for membership of professional bodies by self employed persons; and if he will make a statement on the matter. [11679/18]
Amharc ar fhreagraThe review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my department in 2016,and included in the 2016 report on tax expenditures published on budget day 2016.(http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf).
Regarding tax relief for trade union membership subscriptions, the review concluded that:
“analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner."
Furthermore, the review stated:
"There is a fundamental difference between membership of a professional body which is required to practice that profession and membership of a trade union, which is essentially, a personal choice.
Professional bodies often have a regulatory function, governing standards within a particular sector or industry, with practitioners or employees often required to be a member of a professional body in order to engage in employment in particular fields.
A person cannot be refused the right ofemployment for failure to join a trade union. By contrast, a person can be refused the right of employment as a solicitor, for example, if they fail to hold a practicing certificate."
The reinstatement of a tax relief for trade union membership subscriptions would have no justifiable policy rationale and does not give expression to a defined policy objective.
Given the conclusion of the review, I have no plans to reintroduce such a relief.
79. Deputy Brendan Howlin asked the Minister for Finance the number of staff assigned in his Department to the press office, public relations or communications roles in each year since 2015; the positions by staffing grade and designated role; when each new position came into existence; and if he will make a statement on the matter. [11703/18]
Amharc ar fhreagraI wish to inform the Deputy that the number of staff assigned to Department of Finance Press Office in each year and by grade since 2015 is as follows:
|
Grade |
Year 2015 |
Year 2016 |
Year 2017 |
Year 2018 |
|
Press Officer – Assistant Principal |
|
1 |
1* |
|
|
Press Officer – Acting Assistant Principal |
1 |
|
1* |
1 |
|
Administrative Officer |
1 |
1 |
|
|
|
Higher Executive Officer |
1 |
1 |
1 |
1 |
|
Executive Officer |
1 |
1 |
1 |
1 |
|
Clerical Officer |
1 |
1 |
1 |
1 |
* The Assistant Principal transferred out of the Department in July 2017 and was replaced by an Acting Assistant Principal
The Press Officer has worked closely with my Press Adviser since her appointment in June 2017
80. Deputy Brendan Howlin asked the Minister for Finance if a panel has been established in his Department for communications officers; if a Civil Service position of head of communications or similar role or description has been appointed in his Department; if so, when the appointment occurred; the grade at which it occurred; the reason for same; the policy basis for same; the person that approved the appointment; his plans to make such an appointment; and if he will make a statement on the matter. [11719/18]
Amharc ar fhreagraI wish to inform the Deputy that the Department of Finance has no panel in place for Head of Communications or a similar role nor are there any plans to make such an appointment.
81. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the status of works and plans for a Garda station (details supplied); and if he will make a statement on the matter. [10882/18]
Amharc ar fhreagraThe Office of Public Works (OPW) has recently completed refurbishment to the property referred to by the deputy. Works were completed in December 2017 and the station handed over to An Garda Síochana.
82. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the status of negotiations regarding a new Garda station (details supplied); and if he will make a statement on the matter. [10920/18]
Amharc ar fhreagraThe Office of Public Works (OPW) and the Chief State Solicitor’s Office (CSSO) have now completed the acquisition and taken possession of the preferred site for this project. The site is the former National Irish Bank building at Main Street, Bailieborough, Co. Cavan.
83. Deputy Seán Haughey asked the Minister for Public Expenditure and Reform when legislation will be enacted to address the compulsory retirement age of 65 years of age for civil servants; if his attention has been drawn to the fact that many civil servants reaching retirement age are unhappy with the interim arrangements now in place to deal with their pension arrangements; and if he will make a statement on the matter. [11042/18]
Amharc ar fhreagra84. Deputy Peter Burke asked the Minister for Public Expenditure and Reform his plans to examine the pay scale that employees are returned to in the public service and HSE when they opt to stay on past the age of 65 years of age; his views on the case of a person (details supplied) who has been returned to a lower pay scale; and if he will make a statement on the matter. [11177/18]
Amharc ar fhreagraI propose to take Questions Nos. 83 and 84 together.
I refer the Deputies to my reply to Parliamentary Question No. 55097/17 on 16 January 2018.
The Bill is on the list of priority legislation for publication in the Spring/Summer Session 2018.
Deputies will appreciate that I am not in a position to comment on individual cases. Details of the interim implementation arrangements have been put in place by the individual public service sectors. Queries in relation to individual cases should be addressed by the employee concerned to his/her HR Section.
85. Deputy Martin Ferris asked the Minister for Public Expenditure and Reform the timeframe for the report on pay inequality to be published (details supplied). [11418/18]
Amharc ar fhreagra98. Deputy Róisín Shortall asked the Minister for Public Expenditure and Reform the progress of the report on the costings of the restoration of pay equality as called for in an amendment to section 11 of the Public Service Pay and Pensions Act 2017; the timeframe for the publication of the report; and if he will make a statement on the matter. [11569/18]
Amharc ar fhreagra99. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the status of a report on the cases of pay equality and the timeframe to achieve same (details supplied); the date on which this report will be made available; and if he will make a statement on the matter. [11608/18]
Amharc ar fhreagra109. Deputy Clare Daly asked the Minister for Public Expenditure and Reform when the report on the costings of pay equality will be completed; and the timeframe to achieve same (details supplied). [11681/18]
Amharc ar fhreagraI propose to take Questions Nos. 85, 98, 99 and 109 together.
Under the Public Service Stability Agreement (PSSA) 2018-2020, the Parties acknowledged the issues of concern in relation to the increased length of the salary scale in certain instances in respect of post January 2011 entrants.
It was agreed that an examination of the remaining salary scale issues in respect of post January 2011 recruits at entry grades covered by Parties to this Agreement will be undertaken within 12 months of the commencement of this Agreement.
The amendment to Section 11 of the Public Service Pay and Pensions Act 2017, which provides for the implementation of the terms of the PSSA, stipulates the completion of a report on the cost of, and a plan for dealing with, pay equalisation for new entrants to the public service, within 3 months of the passing of the Act.
This is a significant body of work and staff resources from within the Irish Government Economic Evaluation Service (IGEES) were assigned to collect, collate and examine the data and provide detailed point in time costs associated with the remaining new entrant salary scale issues.
Available data has now been returned by the Sectors and analysis is underway. The report will be submitted to the Oireachtas in line with the requirements set out in the Public Service Pay and Pensions Act on or before the 16th March.
86. Deputy Joan Burton asked the Minister for Public Expenditure and Reform his plans to enhance the use of data and technology in the delivery of services as set out in his Department's Statement of Strategy 2016-2019; and if he will make a statement on the matter. [10932/18]
Amharc ar fhreagraMy department plays a lead role in taking forward two government-approved strategies aimed at enhancing the use of data and technology in the delivery of services. The Office of the Government Chief Information Officer (OGCIO) in my Department, has the overarching brief to strategically leverage ICT within the Public Service to improve outcomes for citizens and businesses. To this end the OGCIO is leading the implementation of the Public Service ICT Strategy and the eGovernment Strategy 2017-2020. In this regard, the OGCIO is working with other Departments, public service bodies, and the EU to produce policies, strategies and systems that provide cross-cutting improvements to how public administration is carried out via innovative use of data and technology.
The Public Service ICT Strategy was approved by Government and, launched in January 2015, is specifically aligned with the objectives of the Public Service Reform Plan and the goals of the Civil Service Renewal Plan. The Strategy aims to aims to maximise the contribution of ICT to the delivery of public services to the citizen and to business, and to increase the efficiency of interactions across the public service. Five key strategic objectives make up the framework setting the future direction for innovation and excellence in ICT within the Public Service. These are: Build to Share; Digital First; Data as an Enabler; Improve Governance; and Increase Capability. An 18 Step Action Plan was developed in 2016 by the Government CIO in collaboration with the ICT Advisory Board. Good progress continues to be achieved in implementing the Action Plan and the Strategy which is now also reinforced by the eGovernment Strategy 2017-2020.
The eGovernment Strategy 2017 – 2020 was approved by Government and published in July 2017. The Strategy is underpinned by the Government’s commitment to be open, flexible and collaborative with our citizens and businesses, using digitisation and technology to increase efficiency and effectiveness and constantly improve public services. Our eGovernment priorities will be taken forward through the delivery of 10 key actions. A particular focus of the implementation plan is a programme, put in place with public bodies, to progress the adoption of the Public Services Card and its online equivalent MyGovID which offers a single, secure way to verify people looking to avail of public services.
The OGCIO is working with public bodies to take forward a significant programme of work related to implementing these strategies some elements of which are set out hereunder. The first version of a government digital services portal, www.gov.ie, was launched at the end of 2017 and provides an intuitive interface which acts as a simple signposting site to a catalogue of all Government digital services. In collaboration with the Government’s Strategic Communications Unit, the service will continue to be developed, adding more information and functionality for citizens and businesses, and using appropriate consultation within Government and with other stakeholders, including the public and/or their representatives.
In addition, my officials are working to progress the Data Sharing and Governance Bill. The purpose of this Bill is to promote and encourage data-sharing between public bodies by providing a statutory framework for data sharing for legitimate and clearly specified purposes that are compliant with Data Protection legislation; and to improve the protection of individual privacy rights by setting new governance standards for data sharing by public bodies. Work is also ongoing to build on and promote the use of common data models across Government, such as the Public Service Identity dataset and Eircodes, that underpin our data protection obligations, the provision of digitised and streamlined services, and the linking of data to improve decision making.
In July 2017 the Open Data Strategy 2017-2022 was published which builds on the substantial achievements made in implementing the Open Data Initiative and sets out a roadmap for continued progress and development. The concept of Open Data is about making data held by public bodies available freely and easily accessible online for reuse and redistribution. The initiative aims to create an environment where, by opening up Government data, new opportunities for research, innovation, transparency, engagement and greater efficiency are delivered and realised by public bodies, businesses, researchers and citizens. Measures to achieve this include a centralised Open Data portal, data.gov.ie, which provides access to official data in open format, development of a Technical Framework to underpin the publication of such data in line with best practice internationally and to ensure it is interoperable, establishment of an Open Data Governance Board to lead the initiative, outreach and engagement with public bodies and other stakeholders. The deputy may wish to be aware that Ireland has achieved first place in the European Commission's Open Data Maturity assessment for 2017.
