Written Answers Nos. 43-62
43. Deputy Clare Daly asked the Taoiseach and Minister for Defence his views on recent failures related to the payroll system in the Defence Forces leaving members with late payment of wages and late distribution of payslips. [22894/18]
Amharc ar fhreagraSince 2017, payrolls for the Defence Forces are processed by the Department's payroll provider, the National Shared Services Office (NSSO). Payments to Defence Forces personnel are made by the NSSO using electronic funds transfer. Also, as part of the move to the NSSO, online payslips were introduced to replace the paper payslips then in use.
My Department has not been made aware of any recent late payments of wages to members of the Defence Forces or late provision of online payslips but if the Deputy can forward any details I will have the matter examined further.
44. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if the ongoing conflict in the Middle East and particularly the recent killing of Palestinian persons will be raised at the next EU Foreign Affairs Council meeting; and if he will make a statement on the matter. [23022/18]
Amharc ar fhreagra45. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if the ongoing conflict in the Middle East and particularly the recent killing of Palestinian persons has been raised by Ireland at the United Nations; and if he will make a statement on the matter. [23023/18]
Amharc ar fhreagraI propose to take Questions Nos. 44 and 45 together.
I refer the Deputy to my reply to Question No 31 on 15 May on this topic, and also to my address to a Topical Issues debate on 9 May and my more detailed statement during Statements on Palestine on 15 May, all dealing specifically with this issue.
A central element of my response in those contributions was to call for an independent and transparent investigation of the events in Gaza. At my instruction, Ireland last week co-sponsored a motion at the United Nations Human Rights Council in Geneva, calling for a Special Session of the Council to discuss these events. At that Special Session on 18 May Ireland supported a resolution which inter-alia provided for the establishment of an independent Commission of Inquiry into what happened and why. Ireland does not currently sit on the Council and so did not have a vote. The resolution was adopted and the Commission will now be established.
I have also requested that the events in Gaza be discussed at the forthcoming meeting of the EU’s Foreign Affairs Council on 28 May.
46. Deputy Robert Troy asked the Minister for Finance his plans to reintroduce a tax relief scheme as part of budget 2019 for trade union subscriptions; if USC and PRSI will be included in this exemption in view of the fact this was not the case during its previous existence from 2001 to 2011; and if he will make a statement on the matter. [22947/18]
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.
47. Deputy Louise O'Reilly asked the Minister for Finance further to Parliamentary Questions Nos. 66 to 70, inclusive, of 16 May 2018, the details of the amendment to the legislation that will be brought forward in the Finance Bill 2018 to impose a calcium threshold on products within the exempt categories; the proposed threshold; and if he will make a statement on the matter. [23011/18]
Amharc ar fhreagraAs indicated previously a small number of exemptions from the sugar-sweetened drinks tax exist for drinks within the CN 2202 category on the basis of the policy rationale for the introduction of the tax.
In order to ensure that the tax is free from State aid a formal notification of Ireland's intention to introduce the tax was submitted to the European Commission earlier this year. The Commission found that the tax, as designed, did not constitute aid. For reasons of clarity amendments will be brought forward in this years Finance Bill to impose a calcium threshold on drinks within some of the exempt CN 2202 headings.
A calcium threshold will be introduced for soya drinks (CN 2202 99 11) and cereal/seed/nut drinks (CN 2202 99 15) and drinks containing milk fats (CN headings 2202 99 91, 2202 99 95 and 2202 99 99). The rationale for exempting these drinks is they are comparable to dairy, some offer an alternative to dairy for persons with dietary requirements such as lactose intolerance, and others contain milk fats which make them closer to dairy that water based beverages.
To ensure consistancy, a calcium threshold similar to that contained in dairy will be introduced. Milk contains in the region of 119milligrams per 100millilitres of liquid and it is likely that the threshold will place a similar calcium requirement on drinks in the above CN headings in order to be exempt from the tax.
Work is ongoing and these amendments will form part of this year's Finance Bill.
48. Deputy Alan Kelly asked the Minister for Finance the cost to date of legal fees incurred in the case being pursued by the State relating to the decision of the European Commission regarding the alleged grant of State aid to a company (details supplied); the names and amount of fees paid to date to each law firm, senior counsel and barrister; if the barristers are full-time public servants; his views on whether such payments are in breach of the one person, one salary principle; and if he will make a statement on the matter. [23020/18]
Amharc ar fhreagraIreland has never accepted the Commission’s analysis in the Apple State aid Decision and is challenging the Commission's decision before the European Courts. Notwithstanding this, the Irish authorities have engaged fully with the Commission throughout the State aid investigation. This involved a significant degree of legal and technical complexity, and additional expertise has been engaged where required.
Last week, I confirmed that the first payment, amounting to €1.5bn, has been deposited in the Escrow account. This is the first of a series of payments with the expectation that the remaining tranches will flow into the fund during Q2 and Q3 of 2018, as previously outlined.
Over the past four years approximately €5.8 million (including VAT) has been paid in total, of which approximately €3 million relates to the recovery process. This includes all legal costs, consultancy fees and other associated costs. These fees have been paid by the Department of Finance, Revenue Commissioners, NTMA, Central Bank of Ireland, Attorney General's Office and Chief State Solicitor's Office. As this is an important issue for the State, the case will continue to be resourced as appropriate.
I understand while there are public servants engaged in the case these are salaried employees and not in receipt of fees.
The following table provides details of the legal fees incurred to date, inclusive of VAT.
|
Advisor |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
Total |
|
Philip Baker QC |
|
€49,183.43 |
€151,761.23 |
€66,525.76 |
€44,924.80 |
|
€312,395.22 |
|
Aoife Goodman BL |
|
€23,763.00 |
€55,052.34 |
€29,761.08 |
€92,304.12 |
|
€200,880.54 |
|
Maurice Collins SC |
|
€25,461.00 |
€89,184.23 |
€45,003.73 |
€91,040.91 |
|
€250,689.87 |
|
Hogan Lovells |
|
€3,936.00 |
|
? |
|
|
€3,936.00 |
|
James Byrne BL |
|
|
|
€961.24 |
|
|
€961.24 |
|
William Fry |
|
|
|
€206,667.81 |
€2,083,086.48 |
€284,980.02 |
€2,574,734.31 |
|
McCann Fitzgerald |
|
|
|
|
€72,570.00 |
€227,523.00 |
€300,093.00 |
|
Conor Quigley QC |
|
|
|
€58,537.93 |
|
|
€58,537.93 |
|
Denis McDonald SC |
|
€9,332.26 |
€27,822.60 |
€53,920.74 |
€78,322.46 |
|
€169,398.06 |
|
Barry Doherty BL |
€4,113.12 |
€66,060.15 |
€1,230.00 |
€141,656.34 |
€146,405.67 |
|
€359,465.28 |
|
John Cooke SC |
|
|
? |
€5,060.00 |
€7,072.50 |
|
€12,132.50 |
|
Brian Murray SC |
|
|
|
€36,469.50 |
|
|
€36,469.50 |
|
Benedict O'Floinn BL |
|
|
|
€49,193.85 |
|
|
€49,193.85 |
|
Paul Gallagher |
|
|
|
|
€80,456.76 |
|
€80,456.76 |
|
Noel Travers |
|
|
|
|
€26,377.60 |
|
€26,377.60 |
|
Dr Suzanne Kingston |
|
|
|
|
€53,172.90 |
|
€53,172.90 |
|
Catherine Donnelly |
|
|
|
|
€40,021.74 |
|
€40,021.74 |
|
Total |
€4,113.12 |
€177,735.84 |
€325,050.40 |
€693,757.98 |
€2,815,755.94 |
€512,503.02 |
€4,528,916.30 |
49. Deputy Michael McGrath asked the Minister for Finance the number of insurance policies in which premiums were returned since 2010; the value of the premiums returned in which an insurance policy was classed as invalid as a result of non-disclosure; and if he will make a statement on the matter. [23044/18]
Amharc ar fhreagraIn 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.
My officials contacted the Central Bank of Ireland in relation to this matter and were advised that it does not collect information from insurance providers regarding either the number of policies in respect of which premiums were returned, or, therefore, the value of such returned premiums. Insurance Ireland also confirmed that it does not collect data on such a basis.
I understand on a general basis that when an insurance policy is cancelled before expiration, either by the insurer or the policyholder, some level of refund may be paid to the consumer, depending on factors such as the specific terms of the relevant contract and the period of time remaining on the contract at the point of cancellation.
If a consumer is unhappy with the value of the premium returned following a policy cancellation, they should initially submit a complaint in writing to the company itself, go through its complaint handling process to conclusion, and be issued with a Final Response Letter. At that stage, if the consumer remains dissatisfied, they can then refer the complaint to the Financial Services and Pensions Ombudsman, the statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider.
50. Deputy Michael McGrath asked the Minister for Finance the details of the information contained in the insurance link database; the body which owns the database; the procedure for a new insurance firm entering Ireland to gain access to the database; and if he will make a statement on the matter. [23045/18]
Amharc ar fhreagra51. Deputy Michael McGrath asked the Minister for Finance the information contained in the integrated information data service database; the body which owns the database; the procedure for a new insurance firm entering Ireland to gain access to the database; and if he will make a statement on the matter. [23046/18]
Amharc ar fhreagraI propose to take Questions Nos. 50 and 51 together.
The data services referenced by the Deputy are operated by Insurance Ireland, a representative trade body for the insurance sector.
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation and therefore have no role in the operation of either data services referred to in the parliamentary questions. As a result, I am not in a position to provide the information being sought by the Deputy.
Detail of each of the data services is available on the website of Insurance Ireland which can be accessed at: http://www.insuranceireland.eu/member-services/shared-services .
52. Deputy Barry Cowen asked the Minister for Finance the spending commitments or paying down of debt which has been entered into with regard to the profits arising from the winding down of NAMA; and if he will make a statement on the matter. [23050/18]
Amharc ar fhreagraI wish to advise the Deputy that it is expected that NAMA will substantially complete its work by 2020. The Agency announced in October 2017 that it had redeemed all of its €30.2bn in Senior Debt which was guaranteed by the State and in April 2018 it redeemed €243m of its subordinated debt. However, notwithstanding the successful achievement of repaying the State’s contingent liability, three years ahead of schedule, there is still a significant body of work yet to be completed by NAMA.
Subject to current market conditions prevailing, this includes redemption of NAMA’s remaining subordinated debt of €1.4bn by March 2020 and completion of its Dublin Docklands SDZ and residential funding programmes. It is through the successful completion of its deleveraging, Docklands and residential funding programmes that NAMA currently projects a surplus in the region of €3bn to be returned to the State once it completes it work. As per section 60(2) of the NAMA Act 2009, NAMA may use surplus funds to redeem and cancel its senior and subordinated debt. Surplus funds may only be returned to the Central Fund once NAMA's debt has been redeemed in full.
Any NAMA surplus paid, while Exchequer positive, will not impact the general government balance, in line with EUROSTAT rules. It will be a decision for the Government as to how any surplus returned by NAMA will be utilised within the framework of the fiscal rules. However, the intention has always been to use such receipts from the resolution of the financial sector crisis to pay down our national debt and reduce our debt servicing costs.
53. Deputy Michael McGrath asked the Minister for Finance the status of the blacklisting of Ireland as a tax haven by the Brazilian Federal Revenue Service; and if he will make a statement on the matter. [23055/18]
Amharc ar fhreagraThere has been ongoing engagement between Irish and Brazilian officials on the issue of Ireland being included on a Brazilian tax list. In addition, Minister of State Joe McHugh TD travelled to Brazil as part of the “Promote Ireland” Programme for St Patrick’s Day this year. Minister McHugh engaged directly with the Head of the Brazilian Revenue Service in a meeting specific to this matter.
The Brazilian authorities have again made clear that they do not consider Ireland to be a tax haven. Ireland have been included on the Brazilian list solely due to having a standard corporate tax rate below 17%. I believe it is inappropriate to include Ireland on the list on the basis of our longstanding 12.5% corporation tax rate.
Officials from my Department and officials from the Revenue Commissioners continue to actively support the Irish Ambassador to Brazil in our efforts to seek Ireland's removal from the Brazilian list.
54. Deputy Catherine Murphy asked the Minister for Finance the amount of funds set aside on an annual basis for contingent liability by the State Claims Agency, SCA, per year for the past 25 years; the way in which the amount that is forecast to be needed for contingent liability is determined; if the SCA carries out an actuarial analysis for budgeting current and future contingent liability; if the SCA conducts a risk assessment in the context of contingent liability; and if he will make a statement on the matter. [23056/18]
Amharc ar fhreagraI am informed by the State Claims Agency (SCA) that as of 23 May 2018, the figures outlined in the table show the contingent liability, or rather the Outstanding Estimated Liability, on all active claims across all delegated State Authorities under their aegis.
Outstanding Estimated Liability is the SCA’s best current estimate of the ultimate cost of resolving a claim. It includes all foreseeable costs such as settlement amounts, claimant legal costs and defence costs (such as fees payable to legal counsel, engineers, consultants etc.). Estimated liability may be revised on a regular basis in light of any new information received.
While the SCA commenced activities in 2001, it has informed me that it only has records in relation to the Outstanding Estimated Liability on Active claims since 2009.
The table shows the Outstanding Estimated Liability on all Active claims covering all delegated State Authorities as at the year-end specified from 2009 to 2017. The figures in the table were correct as per the end of each year specified.
|
As at Year End |
Outstanding Estimated Liability (€m) on Active Claims |
|
2009 |
725 |
|
2010 |
885 |
|
2011 |
991.1 |
|
2012 |
1,126.9 |
|
2013 |
1,223.7 |
|
2014 |
1,469 |
|
2015 |
1,789 |
|
2016 |
2,201 |
|
2017 |
2,662.5 |
With regard to forecast and analysis for budgeting current and future contingent liability, the SCA engages an independent third party actuary, Lane Clark and Peacock, to design and build actuarial models, based on the Agency’s data, to predict the yearly cost of managing the Clinical and General Indemnity Schemes.
Regarding the conduct of a risk assessment in the context of the contingent liability the SCA also engages a third party auditor to review the process of setting the contingent liability.
55. Deputy Bernard J. Durkan asked the Minister for Finance if an arrangement can be made for a person (details supplied) to meet with the relevant Revenue Commissioners official with a view to reaching agreement on a matter; and if he will make a statement on the matter. [23085/18]
Amharc ar fhreagraI am advised by Revenue that there has been previous contact with the person concerned regarding an unpaid tax debt. Revenue is happy to meet with the person concerned with a view to finding a mutually agreeable approach to resolving matters. The person concerned should now contact Ms. Mary Droney of the Collector-General’s Division (telephone 061 488204) with a view to arranging such a meeting.
56. Deputy Michael McGrath asked the Minister for Finance when he expects limited partnership legislation to be introduced; the number of limited partnerships established here each year since 2013; the way in which this compares with other European countries; and if he will make a statement on the matter. [23088/18]
Amharc ar fhreagraDue to changes in the global private equity market in both structure and relevant European legislation, there is a need to update the Investment Limited Partnership (ILP) Act 1994. This objective has been included in the IFS2020 Action Plan which commits to developing amendments to the Investment Limited Partnership Act 1994 to make the structure more attractive to fund managers.
My Department sought and obtained approval from the Government for the preparation of Heads of Bill in 2017. The Heads of Bill have been sent to the Office of the Parliamentary Counsel and a drafter has been assigned to work on this.
The Bill appears on the legislative programme for 2018 and it is anticipated that the draft legislation will be developed in the second half of the year with the intention for the Bill to be considered by the House before the end of this year.
I have been informed by the Central Bank of Ireland that there are currently 7 Investment Limited Partnerships authorised by it and they supplied the following breakdown:
|
YEAR |
Number of ILPs Registered |
|
2013 |
3 |
|
2014 |
0 |
|
2015 |
2 |
|
2016 |
1 |
|
2017 |
0 |
With regard to Limited Partnerships, the relevant legislation that applies to these is the responsibility of my colleague, the Minister for Business, Enterprise & Innovation. I have been informed by the Department of Business, Enterprise and Innovation of the numbers of Limited Partnerships established in Ireland since 2013, and this is outlined in the following table.
|
Year |
Number of Limited Partnerships (LPs) Registered |
|
2013 |
45 |
|
2014 |
71 |
|
2015 |
87 |
|
2016 |
431 |
|
2017 |
676 |
I have also been informed by the Central Bank of Ireland and the Department of Business, Enterprise and Innovation that they do not have any statistics on the numbers of Limited Partnerships or Investment Limited Partnerships established in other parts of Europe. The Department of Business, Enterprise and Innovation point out however that based on data from Companies House (UK), the number of Limited Partnerships Incorporated in the UK at end of period:
|
Year |
Number of Limited Partnerships (LPs) Registered |
|
2012-2013 |
2,,769 |
|
2013-2014 |
4,026 |
|
2014-2015 |
4,545 |
|
2015-2016 |
6,544 |
|
2016-2017 |
5,650 |
With regard to other European countries, Limited Partnerships as a structure are either not available in other European countries or are not directly comparable to the structures within Ireland. For example Germany has a partnership structure that is utilised for investment funds but the structure differs to that within Ireland, and France has introduced a form of limited partnership in 2015.
57. Deputy Michael McGrath asked the Minister for Finance the number of securitised Irish PDH mortgage loans here; the number of securitised Irish BTL mortgages here; the number of securitised Irish commercial loans here; the comparative number of loans securitised in each year since 2013; and if he will make a statement on the matter. [23089/18]
Amharc ar fhreagraI wish to advise the Deputy that my Department does not hold the information that is being sought. The query was sent to the Central Bank who advised that they do not collect data on the number of loans securitised by the breakdown requested.
However, the Central Bank provided data on the outstanding stock of PDH and BTL loans securitised and serviced by Irish credit institutions since December 2010.
|
€ million |
PDH |
BTL |
|
Dec 2013 |
32,065 |
6,988 |
|
Dec 2014 |
30,356 |
6,847 |
|
Dec 2015 |
26,722 |
6,678 |
|
Dec 2016 |
26,689 |
6,471 |
|
Dec 2017 |
21,438 |
5,722 |
The full table can be found at https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/private-household-credit-and-deposits/private-household-credit-and-deposits-data/ie_table_a-18-2_credit_advanced_to_irish_resident_private_households_for_house_purchase.xls?sfvrsn=15
58. Deputy Michael McGrath asked the Minister for Finance the number of securitisation transactions involving Irish PDH and BTL mortgages that have taken place in each year since 2013; and if he will make a statement on the matter. [23090/18]
Amharc ar fhreagra59. Deputy Michael McGrath asked the Minister for Finance the estimated impact on borrowers if a mortgage loan or commercial loan is securitised; and if he will make a statement on the matter. [23091/18]
Amharc ar fhreagra60. Deputy Michael McGrath asked the Minister for Finance the party which makes the key decisions on underlying loans (details supplied); the regulatory position with regard to the beneficial owner in a securitisation model; and if he will make a statement on the matter. [23092/18]
Amharc ar fhreagraI propose to take Questions Nos. 58 to 60, inclusive, together.
I wish to advise the Deputy that my Department does not hold the information that is being sought. The Central Bank also advised that it does not collect data on the number of loans securitised by the breakdown requested. However, the Bank provided data on the outstanding stock in monetary terms of residential PDH and BTL loans securitised and serviced by Irish credit institutions since December 2013.
|
€ million |
PDH |
BTL |
|
Dec 2013 |
32,065 |
6,988 |
|
Dec 2014 |
30,356 |
6,847 |
|
Dec 2015 |
26,722 |
6,678 |
|
Dec 2016 |
26,689 |
6,471 |
|
Dec 2017 |
21,438 |
5,722 |
The full table can be found at https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/private-household-credit-and-deposits/private-household-credit-and-deposits-data/ie_table_a-18-2_credit_advanced_to_irish_resident_private_households_for_house_purchase.xls?sfvrsn=15.
Although each securitisation will be different, in general terms under a securitisation a bank assigns its beneficial interest in a portfolio of its loans to a special purpose vehicle in order to secure additional funding or some other benefit for the bank. However, unlike a loan sale, the bank generally continues to retain the legal title to the loan assets and to service, manage and carry out the creditor's rights and obligations under the credit agreement in relation to the borrower; likewise the debtor's obligations under the loan contract will continue to be to the bank.
In terms of consumer and other borrower protections, the legal and regulatory provisions, including the Central Bank codes and SME lending regulations, which apply to the provision and operation of mortgage or other loans to relevant borrowers will continue to apply irrespective of the status of the creditor. In particular, the provisions of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 ensure that consumers, whose loans are sold to an entity which is not regulated by the Central Bank, will maintain the same Central Bank regulatory protections they had prior to the sale. Furthermore, the options and frameworks available to insolvent borrowers under the Personal Insolvency Act 2012 as amended will also apply irrespective of the status of the creditor party to a loan contract.
61. Deputy Eamon Ryan asked the Minister for Public Expenditure and Reform the legal fees incurred to date by the Office of the Information Commissioner in respect of the proceedings in the High Court and Court of Appeal further to the judgment of the Court of Appeal in a case (details supplied). [22924/18]
Amharc ar fhreagraI am advised that the Office of the Information Commissioner has incurred legal fees of €110,014 to date in respect of the proceedings in the High Court and the Court of Appeal in relation to the case in question.
62. Deputy Eamon Ryan asked the Minister for Public Expenditure and Reform if the Office of the Information Commissioner is subject to budgetary constraints when engaging in litigation whether as an applicant, defendant or notice party. [22927/18]
Amharc ar fhreagraThe Office of the Information Commissioner is funded through Vote 19 – the Office of the Ombudsman. Vote 19 provides for the salaries and expenses of the Office of the Ombudsman, the Office of the Commission for Public Service Appointments, the Standards in Public Office Commission, the Office of the Information Commissioner and the Office of the Commissioner for Environmental Information.
The funding allocated to the Vote each year is based on agreed estimates of the salaries and expenses of the various component Offices. While the organisation has a certain amount of discretion in how it allocates that funding between the Offices and in how it assigns staff to the Offices depending on levels of demand, it must operate within the constraints of the funding allocated.
Each Office within the Vote must also operate within the constraints of the funding allocated each year in so far as possible. A certain amount of funding is allocated for legal expenditure for the Office of the Information Commissioner based on an estimate of the expenditure likely to arise. However, the nature of litigation is such that it is very difficult to predict, with any real degree of accuracy, the likely amount of expenditure on legal fees in any given year. Such expenditure is generally beyond the control of the Office in so far as the relevant statutes provide for the right of appeal to the courts.
