Tuesday, 1 May 2018

Written Answers Nos. 94-107

Financial Services Regulation

Ceisteanna (94)

Michael McGrath

Ceist:

94. Deputy Michael McGrath asked the Minister for Finance the amount transferred to parent companies outside Ireland that is classified within management expenses by participants in the insurance market here, specifically non-life insurance in each of the years 2013 to 2017, in tabular form, based on the data gathered by the Central Bank; the percentage of the entire amount of management fees in the non-life insurance market that is transferred to parent companies outside Ireland; his views on whether the companies are shifting profits outside of Ireland by using the management expenses classification; and if he will make a statement on the matter. [18968/18]

Freagraí scríofa

Minister for Finance

In my role as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Consequently my Department has no role in collecting the information being sought by the Deputy.

In order to address the questions posed, my officials contacted the Central Bank of Ireland on this matter. The Central Bank advised that the information collected from companies does not identify separately payments made to or received from other group companies. Therefore the breakdown being sought by the Deputy is not available.

With regard to views on whether insurers are shifting profits outside of Ireland by using the management expenses classification, the Central Bank has informed me that it is not evident that there is any material transfer of profits via management expenses to parent companies. It does acknowledge however that in some instances, an Irish insurer may receive services from its group, which it pays for.

Financial Services Regulation

Ceisteanna (95)

Michael McGrath

Ceist:

95. Deputy Michael McGrath asked the Minister for Finance the requirements imposed on financial institutions in respect of maintaining a record of politically exposed persons; the reason customers opening accounts are asked a question regarding the issue; and if he will make a statement on the matter. [19016/18]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware financial institutions are designated persons under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (“the Act”) and are obliged to comply with the regulatory obligations contained under Part 4.

Section 37 of the Act obliges designated persons to take steps to determine whether a customer, or a beneficial owner connected with the customer or service concerned, residing outside the State, is a politically exposed person or an immediate family member, or a close associate of, a politically exposed person.

A “politically exposed person” (“PEP”) is defined as an individual who is entrusted with a prominent public function, including a specified official and a member of the administrative, management or supervisory body of a state-owned enterprise and includes a “close associate” and an “immediate family member” under the Act.

Under AML legislation, a designated person is obliged to take steps prior to establishing a business relationship with the customer or when carrying out an occasional transaction with, for or on behalf of the customer or assisting the customer to carry out an occasional transaction. The steps to be taken are such steps as are reasonably warranted by the risk that the customer or beneficial owner is involved in money laundering or terrorist financing.

Where a designated person has knowledge of or reasonable grounds to believe that a customer is a PEP, or is an immediate family member or a close associate of the PEP, a designated person is obliged to apply the following measures:

(1) obtain approval from senior management prior to the establishment of a business relationship with the customer; and

(2) determine the source of wealth and the source of funds related to transactions and services provided.

A designated person that cannot fulfil its obligations in respect of its obligations should not carry on a business relationship or provide services to a customer or beneficial owner as provided for in the Act.

It is a criminal offence for a designated person to not comply with its obligations pursuant to section 37.

It is also worth noting that the categories of individuals regarded as Politically Exposed Persons (PEPs) has been broadened under the EU’s Fourth Anti-Money Laundering Directive (4AMLD) to include domestic PEPs. Those elements of 4AMLD will be transposed into domestic legislation in due course by my colleague the Minister for Justice and Equality. This will mean that domestic PEPs will be in scope for enhanced due diligence measures. This will be a significant departure from the Act where currently only foreign PEPs are subject to enhanced due diligence measures from designated persons.

Tax Agreements

Ceisteanna (96)

Tom Neville

Ceist:

96. Deputy Tom Neville asked the Minister for Finance his views on a double taxation anomaly whereby a UK resident pays tax on the income from a property in Ireland in both jurisdictions; and if he will make a statement on the matter. [19021/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that section 18 Taxes Consolidation Act 1997 provides that an individual who is not resident and not ordinarily resident in Ireland, is in general, liable to Irish tax only on income arising in Ireland. Rent arising from a property situated in Ireland is considered Irish source income and is therefore within the charge to Irish income tax notwithstanding that the individual is tax resident in the UK.

Relief for double taxation is provided for under the terms of the Ireland/UK Double Taxation Agreement. Article 7 of this agreement grants taxing rights to Ireland in respect of income from immovable property. Therefore, under the terms of this agreement, Ireland may tax this income notwithstanding that it is also taxed in the UK.

In general, the country in which an individual is considered a resident of for the purposes of the Ireland/UK treaty will grant relief for any element of double taxation. On the basis that the individual is a resident of the UK, the question of relief for Irish tax paid is a matter for the UK tax authorities. Any credit for Irish tax which is allowed in the UK cannot exceed the UK tax due on that same income.

Insurance Data

Ceisteanna (97)

Michael McGrath

Ceist:

97. Deputy Michael McGrath asked the Minister for Finance the number of insurance companies providing pet insurance; the annual revenue in 2017 obtained from pet insurance based on data obtained from the Central Bank; his views on whether there is a concentration in the market in view of the fact that more families are obtaining pet insurance; if his attention has been drawn to the practice whereby a claim made on a condition in a particular year will render it uninsurable in future years; and if he will make a statement on the matter. [19061/18]

Freagraí scríofa

Minister for Finance

At the outset, you should note that I am advised by the Central Bank of Ireland that pet insurance is not a defined insurance class, of its own, under the European Union (Insurance and Reinsurance) Regulations 2015 and it is therefore not possible to determine which firms provide this type of insurance, nor the levels of revenue obtained from such insurance. However, notwithstanding this, my officials have been in contact with Insurance Ireland in respect of this matter and were informed that Insurance Ireland is aware of four providers for this type of insurance at present.

In relation to the issue of whether a claim made on a condition in a particular year will render it uninsurable in future years, it is important to be aware that neither I nor the Central Bank of Ireland 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 an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.

My understanding is that when making their individual decisions on whether to offer pet insurance cover and what terms to apply, insurers, as with any other type of non-life product, use a combination of rating factors. Such factors include the relevant claims record, and the insurer’s own past claims experience generally.

Vehicle Registration Data

Ceisteanna (98)

Michael McGrath

Ceist:

98. Deputy Michael McGrath asked the Minister for Finance the number of cars registered here in each of the past four years and to date in 2018; the number of those registrations that were pre-registered, that is, where the dealer will register a car in advance of it being sold; his views on whether this has the potential to distort the figures on the number of cars sold each year; and if he will make a statement on the matter. [19062/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the number of new and used cars registered for Vehicle Registration Tax for the years 2014 to 2017 and the first three months of 2018 are shown in the following table.

Gross cars registered for VRT	New Cars	Used Cars
2014	96,630	54,471
2015	125,211	48,398
2016	146,806	72,718
2017	131,683	94,456
2018 (3 Months to end March)	72,065	26,304

I am informed by Revenue that vehicle registrations are carried out by motor dealers either through Revenue’s on-line system, ROS, or through the National Car Testing (NCT) Centre network. When a vehicle is being registered, the requirement is to declare the vehicle particulars in order for Revenue to provide authorisation for entry-into-service of the vehicle. There is no requirement to declare the conditions of sale or whether the vehicle is being registered by a dealer in advance of a sale.

I am further informed by Revenue that a system of “pre-inspection” of vehicles is operated through the NCT Centres. This system was introduced by Revenue to provide an alternative to motor dealers having to attend the NCT Centres. Using this system, an authorised motor dealer can have a vehicle or a number of vehicles pre-inspected in advance of sale. Where a sale is subsequently made, the dealer can register the vehicle directly through ROS without having to go to the NCT Centre. These pre-inspections are not registrations and are processed internally in Revenue for accounting purposes but are not reflected in the annual registration statistics.

I am advised by Revenue that registration statistics reflect the number of vehicles registered each year and are not intended to represent an accurate number of vehicles sold each year, whether by direct sale to a customer or another form of transaction in advance of sale.

Financial Services Regulation

Ceisteanna (99)

Seán Sherlock

Ceist:

99. Deputy Sean Sherlock asked the Minister for Finance his plans to regulate PCP finance packages, particularly in the car loan finance sector. [19067/18]

Freagraí scríofa

Minister for Finance

As the Deputy will be aware 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 the State PCP finance is underwritten by standard financial institutions, manufacturer banks, and special purpose institutions which exclusively offer motor finance.

The Competition and Consumer Protection Commission (CCPC) undertook the first comprehensive study of the Personal Contract Plans (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 the 6 March 2018 and is available at www.ccpc.ie.

The Deputy may also be aware that an Economic Letter on this area was published by the Central Bank on 28 March. This provides further comprehensive data on the PCP market in Ireland, where at the end 2017 PCP finance accounted for 43%(€1.2 billion) of car-related bank debt. The Economic Letter is available at www.centralbank.ie.

My officials will examine these publications and give careful consideration to what actions, if any, would be appropriate.

On the issue more generally, the Central Bank regulates financial services institutions as set out under legislation but does not regulate individual financial products. Under current legislation (Consumer Credit Act 1995), the CCPC has responsibility for authorising and supervising the credit intermediaries which typically sell PCP contracts to consumers, including garages and retailers. The CCPC provides licenses to credit intermediaries and keeps an online list of credit intermediaries holding a valid authorisation which is available on the CCPC website www.ccpc.ie.

The CCPC also deals with complaints about the advertising of Credit Agreements, issuing Pawnbrokers licenses and the advertising of car finance on credit intermediary websites and in the media. The CCPC’s remit is limited to authorisation, as opposed to having a regulatory role for PCPs. It also has a specific statutory remit to provide personal finance information and education to assist consumers.

My Department continues to keep financial legislation relating to consumer protection under review to ensure consumers are protected. However, the Consumer Credit Act 1995 and the CCPC itself both come under the aegis of my colleague the Minister for Business, Enterprise and Innovation.

Stamp Duty

Ceisteanna (100)

Michael McGrath

Ceist:

100. Deputy Michael McGrath asked the Minister for Finance the stamp duty received in each month from January to March 2018 against the budgeted intake for those months by agricultural property, commercial property, residential property and other properties based on the Fiscal Monitor for March 2018; and if he will make a statement on the matter. [19081/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that the breakdown of Stamp Duty receipts by property category as requested by the Deputy is not available. The available information is the estimated net receipts of Stamp Duty associated with all property for January to March 2018 and the equivalent net receipts for January to March 2017.

Month	2017 Stamp Duty on Property Net Receipts	2018 Stamp Duty on Property Net Receipts	2018 Stamp Duty on Property Target
January	€30 m	€52 m	€53 m
February	€29 m	€31 m	€76 m
March	€25 m	€31 m	€65 m

Pre-Budget 2018 estimates of potential Stamp Duty yield were based on a projection forward of receipts in the previous years.

Receipts of Stamp Duty on property vary by month, as borne out by collection data in previous years. While Stamp Duty receipts from property are below forecast to date in 2018, the projection is for the full year and given the nature and timing of property receipts, it is too early to reach any conclusion regarding full year collection.

Universal Social Charge Review

Ceisteanna (101)

Willie O'Dea

Ceist:

101. Deputy Willie O'Dea asked the Minister for Finance the progress of the working group on the future of PRSI and the USC in respect of contribution rates and ensuring contribution classes are actuarially reviewed on an annual basis to determine the changes required to fund benchmarked increases in State pension payment rates or expansion of benefits cover; and if he will make a statement on the matter. [19123/18]

Freagraí scríofa

Minister for Finance

Following a commitment I made in Budget 2018, an inter-Departmental Working Group has been established to examine and report on options for the amalgamation of USC and PRSI. The Group's Terms of Reference are as follows:

“To examine and present options for the amalgamation of PRSI and USC in a manner which seeks to address, inter alia:

(i) the need to preserve the tax base having regard to the need for certainty, equity, and ease of compliance and administration,

(ii) current and future funding challenges facing the Social Insurance Fund,

(iii) issues likely to arise from a phased implementation over a number of years of the new instrument,

(iv) simplification of the personal tax and social insurance systems, and

(v) any other relevant matters arising.

The exercise will be chaired by the Department of Finance. It should have regard to the structure and rates of personal tax and social insurance in other countries and the macroeconomic and demographic contexts in Ireland, and should be completed no later than 30 June 2018.”

In addition to the Department of Finance, the Working Group is comprised of representatives from the Department of the Taoiseach, the Department of Public Expenditure and Reform, the Department of Employment Affairs and Social Protection, the Revenue Commissioners and an external expert, Dr. Micheál Collins.

The Working Group has been holding regular meetings and I understand that work is progressing as per the Group's mandate in its Terms of Reference.

Flood Relief Schemes Payments

Ceisteanna (102)

Noel Grealish

Ceist:

102. Deputy Noel Grealish asked the Minister for Public Expenditure and Reform the procedure for calculating the amount of compensation due to landowners in the event that part of their land has to be taken over by the Office of Public Works for the purpose of carrying out flood alleviation measures; and if he will make a statement on the matter. [18788/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

Compensation claims in respect of flood relief schemes carried out by the Office of Public Works arise in situations where a person’s property interest suffers losses or damages arising from interference with that property in the execution of such schemes under the Arterial Drainage Acts.

Although in almost all situations land is not acquired, the compensation provisions follow the compulsory purchase code as provided for under the Land Clauses Consolidation Act, 1845 and the Acquisition of Land (Assessment of Compensation) Act, 1919 as modified by the Arterial Drainage Acts, 1945 and 1995 and clarified by case law.

Almost all cases are agreed amicably following negotiation. However, where no agreement can be reached, the above Acts provide for referral of the disputed claim by either party to an independent and binding arbitration process.

Compensation entitlement follows a “Principle of Equivalence” so that a prudent claimant is placed in the same position financially after the scheme as they were before it. Compensation is generally addressed under the following headings:

a. Land loss;

b. Severance;

c. Injurious affection;

d. Disturbance; and

e. Benefit (Section 17 of The Arterial Drainage Act, 1945 obliges the arbitrator to have regard to any benefit to any property of the person claiming compensation)

The assessment of compensation under the above headings can be complex and claimants are entitled to reasonable and allowable professional costs in processing a claim.

Community Employment Schemes Supervisors

Ceisteanna (103, 109, 110, 111, 120)

Fiona O'Loughlin

Ceist:

103. Deputy Fiona O'Loughlin asked the Minister for Public Expenditure and Reform if a date has been set for a meeting of the high-level forum on community employment supervisor pensions; if his attention has been drawn to the anger and frustration of community employment supervisors and assistant supervisors; his views on the fact that their contribution to improving the life chances of scheme participants and to their overall local communities is not being properly recognised at the end of their careers in spite of a Labour Court ruling in their favour; his further views on whether the Government may be undermining the Labour Court by ignoring its recommendation; and the steps he will take to resolve the matter. [18580/18]

Éamon Ó Cuív

Ceist:

109. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if a date has been set for a meeting of the high-level forum on community employment supervisors pensions in view of the urgent need for a resolution of this matter in line with the recommendation of the Labour Court; if a meeting date has been set; when this matter will come to a conclusion; and if he will make a statement on the matter. [18671/18]

Carol Nolan

Ceist:

110. Deputy Carol Nolan asked the Minister for Public Expenditure and Reform if a date has been set for a meeting of the high-level forum on community employment supervisor pensions; if his attention has been drawn to the anger and frustration of community employment supervisors and assistant supervisors; his views on the fact that their contribution to improving the life chances of scheme participants and to their overall local communities is not being properly recognised at the end of their careers in spite of a Labour Court ruling in their favour; his further views on whether the Government may be undermining the Labour Court by ignoring its recommendation; and the steps he will take to resolve the matter. [18716/18]

Michael Fitzmaurice

Ceist:

111. Deputy Michael Fitzmaurice asked the Minister for Public Expenditure and Reform if a date has been set for a meeting of the high-level forum on community employment supervisor pensions; if his attention has been drawn to the anger and frustration of supervisors and assistant supervisors; his views on the fact their contributions to improving the life chances of scheme participants and their overall local communities are not being properly recognised at the end of their careers in spite of a Labour Court ruling in their favour; his further views on whether the Government may be undermining the Labour Court by ignoring its recommendation; and the steps he will take to bring a resolution to the matter. [18736/18]

John Curran

Ceist:

120. Deputy John Curran asked the Minister for Public Expenditure and Reform the steps he is taking to address the issue of pension provision for community employment supervisors and assistant supervisors; his plans to implement the Labour Court's recommendations; and if he will make a statement on the matter. [19127/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 103, 109 to 111, inclusive, and 120 together.

I refer the Deputy to my response to No. 262 of 16 January 2018 and No. 227 of 27 March 2018.

Public Sector Staff Sick Leave

Ceisteanna (104)

Catherine Murphy

Ceist:

104. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform the length of time antenatal leave or absence from work remains on a person's personnel record if she is employed within the public service and-or Civil Service; and if he will make a statement on the matter. [18611/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

This response sets out the position in relation to pregnancy related sick leave and antenatal leave.

The full terms of the Public Service Sick Leave Scheme are set out in Appendix A.

The need to protect women during pregnancy and ensure that they are not discriminated against is reflected in the design of the sick leave scheme. The following extra protections are given to a female worker in respect of pregnancy related illnesses:

(i) An employee who is absent for a pregnancy related illness will receive a minimum of half pay during the pregnancy related illness, regardless of whether she has exhausted her ordinary entitlement to paid sick leave. This means that a female employee will not be taken off pay while on pregnancy related sick leave.

(ii) Any pregnancy related sick leave taken at the half rate of pay will not be taken into account in calculating entitlement to ordinary sick leave after the pregnancy.

(iii) The Critical Illness Protocol, which allows for an extended paid sick leave provides specifically for pregnancy-related illness. Where a pregnancy related illness is serious it will be covered by the CIP. One of the criteria for awarding of CIP more generally is 10 consecutive days of hospitalisation, however, this requirement is reduced to 2 days for pregnancy related illness in accordance with Labour Court recommendation (ref: LCR 20667).

In these ways, the Public Service Management (Sick Leave) Regulations, S.I. 124 of 2014 recognise the distinct position of the pregnant worker and make provision for the protection of the health and welfare of such workers. The Regulations implement the principles of European law in relation to non-discrimination against pregnant workers.

The sick leave record of an individual needs to be kept for a minimum of four years as access to paid sick leave is determined on the basis of how much sick leave a person has taken over the previous four years.

Appendix A

Public Service Sick Leave Scheme

The new Public Service Sick Leave Scheme came into effect from 31st March 2014 for the generality of the Public Service.

The new provisions allow staff access to the following paid sick leave:

- maximum of 92 days on full pay in a rolling one year period;

- followed by a maximum of 91 days on half pay in a rolling one year period;

- subject to a maximum of 183 days paid sick leave in a rolling four year period.

Temporary Rehabilitation Remuneration

Temporary Rehabilitation Remuneration (TRR - previously Pension Rate of Pay) can be granted where an individual has exhausted the limits for sick pay provided there is a realistic prospect of that person returning to work. The maximum period for which TRR can be paid is 547 days under ordinary sick leave arrangements.

Critical Illness Protocol

In addition, in order to provide support for public service employees the new Critical Illness Protocol (CIP) was put in place as part the scheme. This allows an employee, who suffers a critical illness or serious physical injury, access to 12 months of paid sick leave on the same basis as the previous sick leave scheme (i.e. 183 days on full pay in a rolling one year period, followed by 182 days on half pay subject to a maximum of 365 days in a rolling four year period). In such cases TRR is for also available for 12 months with a further possibility of 2 years depending on the severity of the illness.

Public Sector Staff Sick Leave

Ceisteanna (105)

Catherine Murphy

Ceist:

105. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform his views on whether antenatal appointments should be categorised as certified sick leave or as standard sick leave in respect of persons employed in the public sector and-or Civil Service; and if he will make a statement on the matter. [18612/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

As Minister for Public Expenditure and Reform, I have overarching responsibility for the Public Service. However, the arrangements for antenatal appointments in sectors other than the Civil Service are a matter for the relevant Minister.

In the Civil Service, pregnant staff are entitled to such paid time off as is necessary for attendance at ante natal clinics. Such time off is not categorised as sick leave of any type.

State Properties Data

Ceisteanna (106)

Barry Cowen

Ceist:

106. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 313 of 17 April 2018, the number of sites and suitable acreage for residential construction, by county and owners such as local authority owner, State body, semi-State body, the OPW and central government; and if he will make a statement on the matter. [18621/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

In relation to the properties held by the Commissioners of Public Works for which I have responsibility, I refer you to the recent PQ 55217/17 answered on 16th January 2018 for details of vacant properties and sites. In the case of other sectors, each State body is responsible for responding to requests for information on the property, they hold.

I also refer the Deputy to the Question asked of the Minister for Housing, Planning, Community and Local Government on this issue on today's Order Paper.

Departmental Contracts Data

Ceisteanna (107)

Mick Wallace

Ceist:

107. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the Government contracts awarded to a company (details supplied) in each year since March 2011, in tabular form; the costs per contract; the Department, agency or body involved; the basis for each contract; and if he will make a statement on the matter. [18637/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

The Department of Public Expenditure and Reform has no current contracts with the company in question.

The following table sets out details of previous contracts the Department had with the company and details of a relevant Office of Government Procurement framework.

Department	Year	Purpose of Contract	Type of Contract	Value of Contract
D/PER (National Shared Services Office)	2014	Provision of Business Architect and Deployment Lead roles on the Financial Management Shared Service Project	Service Supply	€173,550
D/PER	2015	External advice sought to assess the costs, benefits, risks and implications associated to the component elements of the new shared model to deliver L&D to the Civil Service, and to compile a business case outlining the findings	Service Supply	€106,063
D/PER (Office of Govt. Procurement)		The Office of Government Procurement (OGP) has established six framework agreements that include the company named by the Deputy as a member. These frameworks are for the provision of Professional Services, ICT and Managed Services. To date, seven contracts have been awarded to this named company following direct invitation to tender to the members of these frameworks. These contracts were put in place on behalf of other public service contracting authorities. My Department has not signed a contract for provision of services with this company. The administration of the contract once awarded is a matter for each contracting authority and contract details are held by the individual authority concerned.	Service Supply	Not applicable