Written Answers Nos. 109-127
109. Deputy Mary Lou McDonald asked the Tánaiste and Minister for Foreign Affairs and Trade the form, date and amount of all invoices issued to his Department by a company (details supplied) in each of the years 2007 to 2017, in tabular form. [17907/18]
Amharc ar fhreagraThe Department of Foreign Affairs and Trade is responsible for two Votes - Vote 27 (International Co-operation) and Vote 28 (Foreign Affairs and Trade). The Department has not received any invoices from, or made any payments to, the company referred to in the Question in the years 2007 to 2017.
110. Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade further to Parliamentary Question No. 188 of 17 April 2018, the information he referred to from the OPCW investigation that had relevance to apportioning responsibility for the poisoning of persons (details supplied) to the Russian Government. [17984/18]
Amharc ar fhreagraAs the Deputy may be aware, the United Kingdom invited the Organisation for the Prohibition of Chemical Weapons (OPCW) to independently verify their analysis of the toxic chemical used in the Salisbury attack.
The UK requested the assistance of the OPCW under Article VIII, Subparagraph 38(e) of the Chemical Weapons Convention, which provides for the Technical Secretariat to provide technical assistance and technical evaluation to States Parties in the implementation of the provisions of this Convention, including evaluation of scheduled and unscheduled chemicals.
Following the deployment of an expert team to the UK and subsequent analysis of samples, the OPCW confirmed the findings of the UK government relating to the identity of the toxic chemical used in the Salisbury attack. The OPCW was tasked with identifying the chemical, not with attributing its origin or ascertaining blame for the poisoning.
I would like to reiterate that the use of chemical weapons, including the use of any toxic chemicals as weapons, by anyone, anywhere, anytime, and under any circumstances is absolutely unacceptable. The use of these weapons threatens to weaken the long-established universal norm against their use, while serving to embolden those who wish to undermine all that has been achieved since the establishment of the Chemical Weapons Convention.
I fully support the work of the OPCW and recognise and greatly appreciate their continued professionalism, integrity, expertise and tireless commitment to supporting the international community in our determination to ensure that the universal norm against the use of chemical weapons is upheld.
111. Deputy Niall Collins asked the Tánaiste and Minister for Foreign Affairs and Trade if under the lobbyist register it is expected that calls from lobbyists are recorded; if this is the practice in his Department; and if he will make a statement on the matter. [17988/18]
Amharc ar fhreagraAs the Deputy will be aware, the obligation to record and submit lobbying returns to the lobbying register rests with those carrying out lobbying activity, not with those who are lobbied, such as the Designated Public Officials of my Department.
While it is the case that Designated Public Officials of my Department have no formal obligation to make a record of telephone calls from lobbyists or others, they may decide that it is appropriate to do so in the course of their work.
112. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the events he attended for the twentieth anniversary of the Good Friday Agreement; if he attended meetings surrounding same; and the status of the talks to reconvene the Northern Ireland Assembly. [16492/18]
Amharc ar fhreagraA number of events took place in Belfast around 10 April to mark the 20th anniversary of the signing of the Good Friday Agreement.
On 9 April, on behalf of the Government of Ireland, I hosted an evening event in Belfast’s Lyric Theatre to mark the anniversary. The event, called ‘A Further Shore’, was produced by Poetry Ireland and saw some of the island’s finest actors and musicians charting the journey through the years of the Troubles towards the achievement of the Agreement. An audience of some 400 people were in attendance and the event was livestreamed by RTÉ.
On 10 April, I gave the opening address at an anniversary event organised by Féile an Phobail at St Mary’s University College in West Belfast. I later met with community representatives at the Skainos Centre in East Belfast before meeting the Secretary of State for Northern Ireland.
In the afternoon of 10 April, I attended and spoke at an event in Queen’s University Belfast marking the anniversary together with many of those who participated in the negotiations. That evening, I was in the audience for Belfast City Council’s ceremony which recognised the crucial involvement in the peace process of both former President Bill Clinton and Senator George Mitchell.
These anniversary events were an important opportunity to reflect on the achievement of the Good Friday Agreement, to honour those who worked so hard to build peace and reconciliation on these islands, and to remember all those who lost their lives during the tragic years of the Troubles. While looking back, the anniversary events were also an opportunity to review the progress that has been made and the challenges that remain.
Over the course of many months, the Irish and British Governments, as co-guarantors of the Good Friday Agreement, have worked tirelessly to support and facilitate the parties in their efforts to form an Executive.
The devolved, power-sharing institutions of the Good Friday Agreement are the best means for achieving accountable, representative decision-making for all the people of Northern Ireland.
Unfortunately, to date, it has not proved possible to reach an agreement on the formation of an Executive, despite intensive engagement. In light of this, the Government has been working with the British Government to consider means by which we can support the political process, in accordance with the Agreement, in the period ahead.
The Taoiseach has spoken with Prime Minister May and emphasised the Government’s full commitment to the Good Friday Agreement, and our continuing determination to secure the effective operation of all of its institutions.
I remain in very regular contact with the Secretary of State for Northern Ireland, Karen Bradley, whom I met in Belfast on 10 April and again in London on 16 April. We spoke about the importance of the institutions of the Good Friday Agreement and reiterated that the best place for decisions on Northern Ireland to be made are the power-sharing devolved institutions.
The Good Friday Agreement is the indispensable framework for providing stable, inclusive, power-sharing government for all the people of Northern Ireland and for sustaining our interlocking relationships – within Northern Ireland, on the island of Ireland and between the UK and Ireland. As co-guarantors of the Good Friday Agreement, both Governments have an obligation to uphold and protect the letter and spirit of that Agreement and we are continuing to work to that end.
113. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he will report on the recent statement regarding the Loyalist Declaration of Transformation that was made recently. [16493/18]
Amharc ar fhreagraI welcomed the Loyalist Declaration of Transformation issued on 9 April last, coinciding with the 20th Anniversary of the Good Friday Agreement. The leaders of loyalism played a crucial role in negotiating the Agreement and in winning the referendum that endorsed the Agreement, and their recent statement reaffirms their commitment to the principles of the Agreement and to the peace process.
I acknowledge and share the concerns, expressed by some since the statement was released, that there are communities that have not fully benefitted from the peace process even after 20 years. In response to these concerns, I wish to reaffirm the Irish Government’s determination to work in partnership with the British Government and with representatives from all communities and sectors in Northern Ireland to foster greater reconciliation and progress.
I also welcome the clear and unequivocal rejection of criminal actions from within loyalism. Giving real effect to this declaration would make a major contribution towards the transformation of loyalist communities and would be a real enabler for the social, economic and political development of Northern Ireland as a whole.
114. Deputy Robert Troy asked the Minister for Finance the number of registered hauliers that meet criteria as AEOs; and the measures and supports that have been put in place to increase the number in preparation for Brexit. [17509/18]
Amharc ar fhreagra115. Deputy Lisa Chambers asked the Minister for Finance the preparations that have been made in the event that there is no agreement reached on Brexit and the authorised economic operator, AEO, and other authorisations for customs simplifications issued by the customs authorities of the United Kingdom are no longer valid in the customs territory of the European Union; and if he will make a statement on the matter. [17393/18]
Amharc ar fhreagraI propose to take Questions Nos. 114 and 115 together.
The concept of EU Authorised Economic Operator (AEO) has existed since 2008, and the legal basis for same is now reflected in the Union Customs Code (UCC) with its implementing and delegated Acts.
The AEO programme, which aims to enhance international supply chain security and to facilitate legitimate trade, is open to all supply chain actors. An AEO is an economic operator who is deemed reliable in the context of his or her customs related operations. There is no legal obligation for economic operators to become an AEO, it is a matter of choice for each operator based on their specific situation.
Under the UCC the status of AEO consists of different types of authorisations: AEO for Customs Simplifications (AEOC) and AEO for Security and Safety (AEOS). An economic operator can apply for both. The criteria for approval as an AEO are as follows:
- Record of compliance with customs legislation and taxation rules, including no record of serious criminal offences relating to the economic activity of the applicant;
- Demonstration of a high level of control of its operations by the applicant and of the flow of the goods, by means of a system of managing commercial and, where appropriate, transport records, which allows appropriate customs controls;
- Proven financial solvency.
And depending on the type of AEO:
- Practical standards of competence or professional qualifications directly related to the activity carried out (AEOC);
- Appropriate security and safety standards (AEOS).
Applications are assessed on a case by case basis. There is no fee for application, nor is there any required size or scale of business.
I am advised by Revenue that Authorised Economic Operator (AEO) status, and customs authorisations for simplifications, are normally granted by the customs authority of the Member State in which the trader is established and are automatically recognised in all Member States. While AEO status allows a holder to apply for simplifications in another Member State, the status is of most benefit in connection with the customs procedures of the country of residence of the AEO, significantly simplifying the process of import and export. Thus some 89% of third country imports to Ireland are carried out by the 146 AEOs resident in Ireland and authorised by Revenue. Many of these AEOs are customs agents or carriers who take responsibility for import formalities on behalf of traders located in Ireland or abroad.
It is not possible to say in absence of an application how many registered hauliers would meet the criteria for authorisation as AEO. Of the 146 economic operators currently holding AEO status in Ireland, some 65 are in the business of freight forwarding, transport and related businesses. Revenue is aware, however, that the majority of hauliers have insignificant levels of business with countries outside the EU at the moment, and so they would derive little benefit from AEO status at present.
As part of the Government wide response to Brexit, Revenue is meeting with representatives groups, including hauliers, and attending industry seminars to discuss the potential issues resulting from Brexit. Revenue has advised businesses to examine the possible impacts of Brexit on their supply chains and to consider applying for one or more of the authorisations or simplifications available that best suit their business model.
Advice and assistance on customs authorisations and simplifications is available on the Revenue website and Revenue will continue to engage with representative groups, taking account of developments in the ongoing EU-UK negotiations.
116. Deputy Shane Cassells asked the Minister for Finance if the tax relief on union subscriptions which was withdrawn in 2011 and failed to be reviewed in 2016 will be restored; and if he will make a statement on the matter. [17411/18]
Amharc ar fhreagraA 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. The review may be found at the following link:
(http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf)
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.
The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight."
Given the conclusions of the review, I have no plans to reintroduce such a relief.
117. Deputy Niall Collins asked the Minister for Finance when a relief from stamp duty will be available to a person (details supplied); and if he will make a statement on the matter. [17499/18]
Amharc ar fhreagraThe stamp duty relief to which the Deputy is referring was introduced in Finance Act 2017, and provides for a reduced rate of stamp duty on certain farm consolidation transactions. This measure is subject to a commencement order after a full consideration of any administrative or EU state-aid requirements.
For the relief to operate, there must be both a sale and a purchase of land within a period of 24 months of each other. Where other qualifying conditions are satisfied, stamp duty will be paid only to the extent that the value of the land that is purchased exceeds the value of the land that is sold. A reduced rate of 1% will be charged on the excess, if any, of the purchase value. If the sale takes place before the purchase, then relief will be given at the time of purchase. However, if the purchase takes place first, then stamp duty will have to be paid but can subsequently be refunded when the sale takes place.
A number of qualifying conditions must be satisfied before the relief can apply. The most important condition is that Teagasc must issue a certificate stating that a sale and purchase or an exchange of farmland was made for farm consolidation purposes. This is the certificate that is currently required in relation to the capital gains tax relief available on farm consolidations. The criteria to be used by Teagasc for this purpose and the information to be supplied to Teagasc are contained in guidelines published by the Minister for Agriculture, Food and the Marine.
A purchaser of farmland must retain ownership of the farmland for a period of five years and must use the land for farming. Where any part of the land is disposed of before the end of this five-year holding period, the stamp duty relieved can subsequently be recovered by Revenue, or partly recovered as appropriate.
The measure will apply to all transactions which took place after on or after 1 January 2018 and on or before 31 December 2020, so farmers who consolidate their holdings prior to the commencement of the relief, but within those dates, will still be eligible.
Consideration of the administrative and EU state-aid requirements arising is ongoing.
118. Deputy Pearse Doherty asked the Minister for Finance the number and nature of investigations the Central Bank has carried out with regard to overpricing or overcharging on commercial loans in the past ten years; the financial institutions involved; the result of such investigations; and if he will make a statement on the matter. [17503/18]
Amharc ar fhreagraI am informed by the Central Bank that this can be considered both from the broader enforcement perspective and in terms of consumer protection. Both of these perspectives are outlined as follows.
On the Enforcement side, the Central Bank operates an assertive risk based approach to supervision which is supported by a credible threat of enforcement. The Central Bank’s enforcement strategy is aimed at promoting principled and ethical behaviour in regulated entities and those that work in such entities. The Central Bank takes appropriate action where regulated entities and/or individuals fall short of those expected standards of behaviour.
Since 2006, 118 cases have been concluded through the ASP/settlement procedure. This has resulted in the sum of €61,828,525 being imposed by way of monetary sanctions. Notable cases involving issues of overcharging include the Administrative Sanctions Procedure (ASP) concluded by way of settlement in 2010 involving Allied Irish Banks as well as that concluded by way of settlement in 2011 concerning MBNA Europe Bank Limited.
Public statements on the Central Bank’s settled ASP cases are available on the Central Bank’s website.
In terms of consumer protection, errors by regulated financial services firms are monitored by the Central Bank through a number of supervisory tools, including its on-site inspection work and through the statutory requirement imposed on regulated firms to notify the Central Bank of certain errors within timeframes prescribed by the Consumer Protection Code 2012. All such errors, including, but not limited to those related to commercial loans that impact consumers, are thoroughly analysed and monitored by the Central Bank to ensure that they are fully resolved, with customers notified and refunded promptly, systems’ failures corrected and controls implemented to prevent a recurrence of the error.
The Central Bank considers each error on its own merits, with the overarching objective of protecting consumers’ interests, including ensuring that they are not left out of pocket. Excluding the Tracker Mortgage Examination, the figures show that firms have returned €164 million to consumers over the last four years following errors (this figure is not exclusive to errors related to consumer loans). Of this, firms identified and reported €75 million, while the Central Bank identified €89 million through its own supervisory activity. The Central Bank publishes details of this supervisory work in its Annual Performance Statements (APS). For example, the APS 2016 – 2017 includes a breakdown of consumer restitution across a number of categories of financial institutions – see page 21 for relevant details (available at the following link):https://www.centralbank.ie/docs/default-source/publications/annual-performance-statement/annual-performance-statement-2016-2017.pdf?sfvrsn=2).
119. Deputy Michael McGrath asked the Minister for Finance the number of penalty payments received by the Revenue Commissioners in each of the years 2011 to 2017, by source in tabular form; and if he will make a statement on the matter. [17549/18]
Amharc ar fhreagra120. Deputy Michael McGrath asked the Minister for Finance the amount of interest received by the Revenue Commissioners in each of the years 2011 to 2017, by source in tabular form; and if he will make a statement on the matter. [17550/18]
Amharc ar fhreagraI propose to take Questions Nos. 119 and 120 together.
I am advised by Revenue that it strongly encourages timely compliance and engagement by taxpayers towards paying the right amount of tax at the right time and meeting their return filing obligations. In that way, taxpayers avoid any exposure to penalties or interest for late or non-compliance.
Revenue has confirmed that the levying of interest on late payment of tax is a statutory charge that must be factored into any phased payment agreement or debt collection/enforcement action. I am satisfied that collection of interest by Revenue is a key element in reflecting the value of money forgone by the Exchequer where a taxpayer does not pay what is due on time and is also vital in supporting the efforts of the vast majority of taxpayers who are voluntarily and fully compliant.
The number of penalty payments received and the amounts of interest charged/collected by Revenue for the years 2011 to 2017 inclusive are set out in the following tables. Both interest and penalty payments received were charged and collected as part of Revenue’s risk management intervention and late filing/non filing programmes.
Interest Collected
|
2011 €m |
2012 €m |
2013 €m |
2014 €m |
2015 €m |
2016 €m |
2017 €m |
|
83.09 |
62.93 |
92.35 |
87.53 |
100.76 |
91.06 |
81.26 |
Number of Penalty Payments
Note: A taxpayer may make numerous individual payments in respect of a single penalty
|
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
15,726 |
15,492 |
20,277 |
21,721 |
24,615 |
27,566 |
29,662 |
121. Deputy Michael McGrath asked the Minister for Finance the annual carry forward for 2019 and beyond for tax measures and expenditure measures, respectively, announced in budget 2018; and if he will make a statement on the matter. [17666/18]
Amharc ar fhreagraThe carryover cost in 2019 of tax measures introduced in Budget 2018 is estimated to be of the order of €14 million. It is important to point out that the exact impact of carryover will be reviewed as part of the normal Budgetary process, as there are several moving parts to be considered, such as economic growth, take up of various schemes and specific tax relevant factors, which could impact on the expected return from the measures introduced.
The carryover impact of Budget 2018 current expenditure measures, as published in Expenditure Report 2018, is an additional cost of €192m arising in 2019 from the carryover impact of certain Budget 2018 expenditure measures
122. Deputy Michael McGrath asked the Minister for Finance if a convergence margin will apply in the calculation of net fiscal space for 2019 as a result of Ireland potentially not meeting its MTO in 2018 as stated in the stability programme update 2018; and if he will make a statement on the matter. [17703/18]
Amharc ar fhreagra128. Deputy Pearse Doherty asked the Minister for Finance the estimated impact on fiscal space in 2019 and beyond of a failure to reach the medium term objective in 2018, in legal and accounting terms in tabular form with the fiscal space in 2019 and beyond in such a situation. [17755/18]
Amharc ar fhreagraI propose to take Questions Nos. 122 and 128 together.
Assessment of compliance with the fiscal rules and, in particular, whether the MTO is achieved is undertaken by the European Commission on the basis of its Spring Economic forecasts. These will be published in early-May.
So I will return to this issue in the Summer Economic Statement.
Finally, as I have stated on numerous occasions, the Government will formulate budget policy based on what is right for the economy, and will not adopt pro-cyclical policies that jeopardise the sustainability of our public finances and our future living standards.
123. Deputy Michael McGrath asked the Minister for Finance the reason the risk of harmonised European corporation tax and harmonised European digital tax has not been specifically included in the Table 19 fiscal risk assessment matrix in the stability programme update 2018; and if he will make a statement on the matter. [17704/18]
Amharc ar fhreagraTable 19 in the Stability Programme Update identifies areas which potentially have a negative impact on the fiscal position of the State. It is considered that concentration of receipts from a relatively small number of taxpayers represents a medium level risk arising from corporation taxation.
Tax files at EU level are subject to unanimous agreement of all Member States, including Ireland. A harmonised EU corporation tax or a harmonised EU digital tax could not be introduced without Ireland's support.
Nevertheless, we continue to engage constructively on discussion regarding a common consolidated corporate tax base and on the taxation of digital economy.
By its nature, the common corporate tax base is a complex and detailed proposal and Member States need to fully analyse and consider its potential impact on national tax systems. Member States are discussing and debating the various aspects of the proposal in the relevant tax working parties. These discussions at a relatively early stage and much more technical consideration and discussion is needed.
Similarly, Ireland will continue to actively engage with work in the area of the digital economy at both OECD and EU level. We believe that any reforms in this area must ultimately be globally agreed, evidence based, sustainable in the long run and focused on ensuring the alignment of taxing rights with the location of real substantive value creating activity.
124. Deputy Michael McGrath asked the Minister for Finance if the consumer price index has been broken down by composition (details supplied); if the price changes have been tracked along those lines; the result of the conclusion of such analysis; and if he will make a statement on the matter. [17705/18]
Amharc ar fhreagraInflation in Ireland has been subdued for several years. For example, on a Harmonised Index of Consumer Prices (HICP) basis, 2017 was the fifth consecutive year of inflation below 1 per cent. This phenomenon is not restricted to Ireland. Low inflation has been a feature of advanced economies in recent years. However, in 2017, inflation on a HICP basis across the euro area accelerated to 1.5 per cent, from 0.2 per cent in 2016.
This acceleration did not occur in Ireland, with inflation on a HICP basis averaging just 0.3 per cent in 2017. The divergence between inflation in the euro area and Ireland can in part be attributed to the impact of euro-sterling appreciation on consumer prices in Ireland. In turn this reflects the importance of the UK as a source of imports of consumer products.
While average inflation is low, that masks considerable variation across the components which make up the index. For example, the price of goods is declining. In 2017, goods inflation averaged -2.1 per cent. The decline in goods is driven by declining prices for non-energy industrial goods and food. In contrast, energy prices increased on average by 4 per cent last year.
While goods prices on the whole are falling, those for services are increasing. For example, services inflation averaged 2.5 per cent last year. One important factor driving the increase in services inflation is strong growth in rent prices. Rent inflation averaged 6.7 per cent last year, a moderation from the 8.7 per cent increase in 2016.
While inflation is not categorised by the CSO or Eurostat into discretionary or non-discretionary elements, both institutions publish detailed inflation data at a sub-component level according to the United Nations (UN) Classification of Individual Consumption by Purpose (COICOP).
125. Deputy Darragh O'Brien asked the Minister for Finance the number of applications received for the home building finance Ireland scheme; the number of successful applicants; the amount issued to date; the interest rate applied; and if he will make a statement on the matter. [17750/18]
Amharc ar fhreagra126. Deputy Darragh O'Brien asked the Minister for Finance the number of NAMA staff transferred to home building finance Ireland to date; the estimated operating costs of home building finance Ireland in 2018; and if he will make a statement on the matter. [17751/18]
Amharc ar fhreagra127. Deputy Darragh O'Brien asked the Minister for Finance the targeted number of homes due to be built under home building finance Ireland financing; and if he will make a statement on the matter. [17752/18]
Amharc ar fhreagraI propose to take Questions Nos. 125, 126 and 127 together.
In my Budget speech on 10 October 2017, I announced a proposal to establish a new dedicated fund, Home Building Finance Ireland (‘HBFI’) to provide funding on market terms to viable residential development projects whose owners are experiencing difficulty in obtaining debt funding.
In answering the Deputy’s questions it is first necessary to recognise that Home Building Finance Ireland (HBFI) is in the process of being established. The draft scheme of the HBFI Bill was approved by Cabinet at the end of January and drafting is currently being undertaken by the Office of Parliamentary Counsel in conjunction with my officials. It is expected that the Bill will be published shortly and I am hopeful that the Oireachtas will be in a position to pass the HBFI Bill in the first half of 2018, with a view to HBFI commencing operations later in 2018. The passage of legislation establishing HBFI is a priority for the Government.
While HBFI will be an independent legal entity established under the Companies Act 2014, in order to ensure that the fund is established in the most efficient manner possible it is proposed that HBFI will harness the considerable expertise and skills amassed through NAMA’s existing residential funding programme. It is envisaged that this will be achieved by enabling the NTMA to allocate current NAMA staff with the relevant skills and experience to HBFI where appropriate and subject to the need to ensure that achievement of NAMA’s own statutory objectives is not adversely affected. The allocation of NAMA staff will be commensurate to the level of demand for lending from developers and staff will only be assigned where the skills and experience match those that are sought by the Board of HBFI. However as HBFI’s establishing legislation has not yet been enacted it follows that no NAMA staff have been transferred to HBFI to date.
Officials in my Department have been engaging with stakeholders including the Construction Industry Federation and other market participants who welcome the proposed scheme. Formal applications for funding will commence once the entity is up and running later this year. While it will ultimately be up to the Board of HBFI, when it is constituted, to determine the terms and conditions of the fund's lending, the success of an application will depend on, inter alia, the risk profile of each project, the quality of collateral and the creditworthiness of the borrower. In order to comply with EU State aid rules, lending will be provided at market equivalent rates and will not constitute subsidised funding for residential developers.
Once HBFI is established it is estimated that the fund’s proposed allocation of €750m could have capacity to fund about 6,000 homes in the coming years. This delivery estimate is based on an assumed delivery cost of €250,000 per unit and an assumption that HBFI would recycle the allocated funding once over an estimated three year time horizon. The current estimated shortfall in residential supply is 15,000 – 20,000 units per annum and, accordingly, HBFI, with an annual average delivery of 2,000 homes, could help reduce this shortfall by about 10%.
HBFI’s operating costs will include salary costs, the cost of providing legal, financial reporting and other services in addition to loan servicing costs, audit fees, Board fees, office accommodation and systems costs. While it is too early to estimate operating costs in advance of a business plan which has been endorsed by the future Board of HBFI, it is envisaged that these costs will be commensurate with those of NAMA’s residential funding programme and costs typically incurred by other market participants.
