Written Answers Nos. 277 - 299
277. Deputy Michael McGrath asked the Minister for Finance the annual cost of the entrepreneurial relief for each year since its establishment including 2017; the number of companies that have availed of the scheme in each of these years by multinational companies and SMEs; and if he will make a statement on the matter. [33923/18]
Amharc ar fhreagraIt is assumed that the Deputy is referring to the revised Entrepreneur Relief provided for in Section 597AA of the Taxes Consolidation Act 1997.
I am advised by the Revenue Commissioners that the provisional cost of the revised Entrepreneur Relief for 2016, based on the latest data available, is in the region of €20m with approximately 400 individuals claiming the relief. This is provisional and likely to change as further analysis is done. As the relief is claimed by individuals, it is not possible to provide a breakdown by multinational companies and SMEs.
278. Deputy Michael McGrath asked the Minister for Finance the annual cost of the special assignee relief programme for the previous five years including 2017; the number of companies that have availed of the scheme in each of these years by multinational companies and SMEs; the number of individuals who have availed of the scheme in each of these years; and if he will make a statement on the matter. [33924/18]
Amharc ar fhreagraI am advised by Revenue that the most recent data available on the annual cost and number of individuals availing of the Special Assignee Relief Programme is as follows:
|
Year |
Cost €m |
No. of individuals |
|
2015 |
9.5 |
586 |
|
2014 |
5.9 |
302 |
|
2013 |
1.9 |
121 |
|
2012 |
0.1 |
11 |
I am further advised by Revenue that a breakdown of employers by multinationals and SMEs is not available for the Special Assignee Relief Programme.
279. Deputy Michael McGrath asked the Minister for Finance the annual cost of the foreign earnings deduction for the previous five years including 2017; the number of companies that have availed of the scheme in each of these years by multinational companies and SMEs; the number of individuals who have availed of the scheme in each of these years; and if he will make a statement on the matter. [33925/18]
Amharc ar fhreagra310. Deputy Michael McGrath asked the Minister for Finance the number of countries the foreign earnings deduction is available for; the countries the FED is available for; the cost of €3.2 million in 2015 by country; and if he will make a statement on the matter. [34472/18]
Amharc ar fhreagraI propose to take Questions Nos. 279 and 310 together.
The Foreign Earnings Deduction (FED) is provided for in section 823A of the Taxes Consolidation Act 1997 (TCA). It provides relief from tax on up to €35,000 of salary for employees who travel out of State to certain countries on behalf of their employer. In order to qualify for FED, an employee must spend a minimum of 30 days abroad in a year and each trip must consist of at least three (3) consecutive days in a qualifying country.
I am advised by Revenue that the most recent data available on the annual cost and the number of individuals who have availed of the scheme is as follows:
|
Year |
Cost €M |
No. of individuals |
|
2015 |
3.2 |
472 |
|
2014 |
1.1 |
144 |
|
2013 |
1 |
135 |
|
2012 |
0.8 |
108 |
I am further advised by Revenue that FED is an allowance that is applied for by the employee through their own tax returns and is not returned at a company level. Therefore, it is not possible to provide the data on the number of companies associated with employees availing of the scheme broken down by multinational companies and SMEs, as requested by the Deputy.
FED is available for travel to the following thirty countries:
- Brazil
- Russia
- India
- China
- South Africa
- Egypt
- Algeria
- Senegal
- Tanzania
- Kenya
- Nigeria
- Ghana
- Democratic Republic of the Congo
- Japan
- Singapore
- Republic of Korea
- Saudi Arabia
- United Arab Emirates
- Qatar
- Bahrain
- Malaysia
- Indonesia
- Vietnam
- Thailand
- Chile
- Oman
- Kuwait
- Mexico
- Colombia
- Pakistan.
A breakdown of the total tax cost of €3.2m in 2015 by country is provided in the following table. Where the allowance claim relates to travel to multiple countries this is given under the item ‘Multiple Countries’ and for countries where the total number of claims is less than 10, these have been combined and given as ‘Other’ in order to protect taxpayer confidentiality.
|
Country |
Tax Cost €m |
|
China |
0.44 |
|
South Africa |
0.21 |
|
United Arab Emirates |
0.16 |
|
India |
0.16 |
|
Saudi Arabia |
0.13 |
|
Singapore |
0.09 |
|
Algeria |
0.08 |
|
Russia |
0.07 |
|
Multiple Countries |
1.27 |
|
Other |
0.55 |
|
Total |
3.16* |
*rounded to €3.2 million elsewhere in this reply.
280. Deputy Michael McGrath asked the Minister for Finance the take-up of the key employee engagement programme in each month since its establishment; the number of companies that have availed of the scheme in each of these years by multinational companies and SMEs; and if he will make a statement on the matter. [33926/18]
Amharc ar fhreagraI am advised by Revenue that as the Key Employee Engagement Programme (KEEP) only came into effect on 1 January 2018, details of the costs and numbers availing of this programme will only be available once the relevant employer tax returns for 2018 have been received and processed. The first KEEP return is due 31 March 2019.
It should be noted that, in accordance with the definition of qualifying company in section 128F of the Taxes Consolidation Act 1997, a company availing of the incentive must be a micro, small or medium sized enterprise.
281. Deputy Michael McGrath asked the Minister for Finance the annual cost of the employment and investment incentive scheme for each year since it commenced including 2017; the number of companies that have availed of the scheme in each of these years by multinational companies and SMEs; and if he will make a statement on the matter. [33927/18]
Amharc ar fhreagraI am advised by Revenue that the most recent data on the annual cost and number of qualifying companies availing of the Employment and Investment incentive since it commenced in 2012 is as follows:
|
Year |
Cost €m |
No. of Qualifying Companies |
|
2016 |
32.5 |
261 |
|
2015 |
22.5 |
279 |
|
2014 |
18.8 |
239 |
|
2013 |
12.7 |
190 |
|
2012 |
4 |
78 |
In accordance with the definition of qualifying company in s. 494(4) of the Taxes Consolidation Act 1997, all companies availing of the incentive must be micro, small or medium-sized enterprise within the meaning of Annex 1 to Commission Regulation (EU) No. 651/2014 of 17 June 2014.
282. Deputy Michael McGrath asked the Minister for Finance the annual cost of the start-up refunds for entrepreneurs for the previous five years including 2017; the number of companies that have availed of the scheme in each of these years; and if he will make a statement on the matter. [33928/18]
Amharc ar fhreagraStart Up Refunds for Entrepreneurs (SURE) provides a refund of tax paid in the previous six tax years to those previously in PAYE employment, or recently unemployed, where they invest funds into a new business set up by them.
The most recent year for which statistics are available on this incentive is 2015. The cost and number of individuals who have availed of SURE for each year from 2012 to 2015 inclusive are as follows:
|
Year |
Cost €m |
Claimants |
|
2015 |
1.8 |
86 |
|
2014 |
1.8 |
59 |
|
2013 |
1.3 |
60 |
|
2012 |
1.6 |
88 |
As the Deputy may be aware, I have commissioned a review of the Employment and Investment Incentive (EII) and SURE. That review is underway and I expect that the report will be completed very shortly.
The scope of the review is as follows:
- An examination of the extent to which the objectives of the incentives remain valid.
- An examination of the extent to which objectives of the incentives are being met.
- An examination of the cost effectiveness of the incentives.
- An examination of alternative options which may exist for the provision of state support.
- An examination of the effect of GBER (the General Block Exemption Regulations) on the incentives.
- A comparison of the incentives with similar incentives in operation in other EU Member States in terms of design, objectives, criteria, take-up, impact and cost-effectiveness.
- An examination of whether the incentives, as currently designed, provide a platform for the effective operation of the reliefs.
The review of the design of the incentives should include:
- Possible alternative approaches to giving relief based on the current certification procedure;
- Current investment thresholds and carry-forward rules;
- Amount of relief and triggers for relief;
- The appropriateness and adequacy of the risk minimisation requirements;
- The imbalance of knowledge/control between companies and investors;
- The rules relating to designated funds;
- The interaction of the incentive with other aspects of the tax code;
- The interaction of the incentive with other State supports for SMEs e.g. the R&D/'innovation' requirements; and
- The structure and text of the legislative provisions including definitions of terms.
- Conclusions and Recommendations arising from the analysis.
283. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 116 of 27 June 2018, if insurance intermediaries as regulated by the Central Bank potentially include claims harvesters; if the Central Bank has any role in regulating so called claims harvesters or if it is solely for the Law Society; if he has considered implementing stronger regulation on claims harvesters similar to that being considered by the Financial Conduct Authority in the UK; and if he will make a statement on the matter. [33929/18]
Amharc ar fhreagra284. Deputy Michael McGrath asked the Minister for Finance if the Central Bank has taken enforcement action on claims harvesting; the outcome of such actions in respect of the 2,235 registered insurance intermediaries; and if he will make a statement on the matter. [33930/18]
Amharc ar fhreagraI propose to take Questions Nos. 283 and 284 together.
For the purposes of this response, the Central Bank is assuming that the term “claims harvesters” refers to the activity of gathering personal information on potential litigants and selling it to third-party legal firms. This is not an activity that falls to be regulated by the Central Bank.
Insurance Intermediaries are regulated by the Central Bank under the European Communities (Insurance Mediation) Regulations 2005 (“the IMR”).
Activities such as ‘loss assessing’ and ‘claims handling’ on behalf of a policyholder are considered to be regulated activities under the European Communities (Insurance Mediation) Regulations 2005 (the “IMR”). The IMR does not include the activity of ‘claims harvesting’.
Firms which deal with claims under insurance contracts are required to be authorised by the Central Bank as ‘insurance intermediaries’ under the IMR. The specific regulations that apply to ‘insurance intermediaries’ are, the IMR, the Consumer Protection Code, 2012, and the Minimum Competency Standards. Chapter 7 of the Consumer Protection Code deals with claims processing and Appendix 3 of the Minimum Competency Code 2017 outlines the competencies required when handling claims.
There are no specific rules on “claims harvesting” activities within the financial regulation framework for which the Central Bank is responsible. “Claims harvesting” activities could be considered to fall under the umbrella of civil litigation rather than being a regulated financial activity. As such, the Central Bank currently has no empowerment or remit to develop rules.
As part of its consumer protection mandate, the Central Bank challenges firms to demonstrate compliance with regulatory requirements. Any evidence of poor conduct may result in increased supervisory engagement or where appropriate, enforcement action, up to and including involuntary revocation of a regulated firm’s license. The Central Bank’s powers derive primarily from legislation, e.g., the Central Bank Act 1942 and the Central Bank (Supervision and Enforcement) Act 2013.
285. Deputy Michael McGrath asked the Minister for Finance the number of bank cards issued by each of the banks in which the State has a shareholding; the number of days turnaround for issuing new cards for each of the same banks in which each of the banks have their cards printed; and if he will make a statement on the matter. [33931/18]
Amharc ar fhreagraThe banks have provided officials in my Department with the following information in relation to the Deputy's question:
AIB:
"Number of Credit Cards in issue 695,364
Number of Debit Cards in issue 2,012,502
These numbers are per AIB’s June CBI return.
In terms of Card/PIN Issuance the following applies:
DAY 0 = CARD ORDERED
Day 1 = PIN ISSUED IN POST
Day 3 = CARD ISSUED IN POST
Note, if no PIN required the CARD ISSUED IN POST DAY 1 (typically replacement cards)”
BOI:
“As of the end of June 2018, Bank of Ireland has over two million Debit and Credit Cards currently in issue.
For both Debit and Credit Cards, we advise customers that it can take up to 5-7 days to receive their new card, however most customers will receive their card within 4 working days of the card being ordered.”
PTSB:
“Permanent TSB has circa 860,000 cards in issue with a typical delivery timeline of 5 working days from order.”
287. Deputy Michael McGrath asked the Minister for Finance the cost of insurance under headings (details supplied) for his Department and each body under its aegis; the cost of the premium for 2018 or the premium paid in 2018 if the policy year straddles two calendar years; the comparable premium amount paid in 2017; the number of outstanding insurance claims against his Department or bodies under its aegis; the estimated cost of those claims; and if he will make a statement on the matter. [33999/18]
Amharc ar fhreagraI wish to advise the Deputy that my Department operates under State Indemnity, a self-insurance model whereby the State bears the financial risk associated with the cost of claims. The National Treasury Management Agency (NTMA) is designated as the State Claims Agency (SCA) when performing the claims and risk management functions delegated to it under the National Treasury Management Agency (Amendment) Act 2000.
Since the establishment of the SCA, the management of claims functions has been delegated to the Agency. It currently manages claims and risks on behalf of 144 delegated State Authorities.
I also wish to advise the Deputy that of the 17 Bodies under the Aegis of my Department, 6 are designated State Authorities covered under State Indemnity managed by the SCA. These are the Comptroller and Auditor General, the Credit Union Advisory Committee, the Credit Union Restructuring Board, the Disabled Drivers Medical Board of Appeal, the National Treasury Management Agency and the Tax Appeals Commission. The Credit Review Office (CRO) incurs no direct insurance costs as Enterprise Ireland provides full business services to the CRO.
Of the remaining 10 Bodies, it was not possible for 6 (Central Bank, Financial Services and Pensions Ombudsman, Irish Bank Resolution Corporation, Irish Financial Services Appeals Tribunal, National Asset Management Agency and Strategic Banking Corporation of Ireland) to respond to this information request in the time available and I will make arrangements to provide a response in line with Standing Orders.
Four Bodies have provided the information sought and this is set out in the following table.
|
Body
|
Cost of the premium for 2018 or the premium paid in 2018 if the policy year straddles two calendar years:
Public Liability Buildings Cover Employer Liability |
Comparable premium amount paid in 2017:
Public Liability Buildings Cover Employer Liability
|
Number of outstanding insurance claims against the body:
Public Liability Buildings Cover Employer Liability |
Estimated cost of those claims:
Public Liability Buildings Cover Employer Liability |
|
Investor Compensation Company DAC |
€613,270 - Specie Excess of Loss Investor Compensation Scheme Insurance for €110m |
€701,242 - Specie Excess of Loss Investor Compensation Scheme Insurance for €110m |
N/A - Public Liability, Buildings Cover and Employer Liability are all covered under Central Bank of Ireland policy. |
N/A |
|
Irish Fiscal Advisory Council |
€835.00 (Personal Accident & Travel Insurance) |
€1,035.58 (Personal Accident & Travel Insurance) |
0 |
€0 |
|
Office of the Revenue Commissioners |
Hull & Machinery Hull & Machinery (seized vessel) €9,000 |
Hull & Machinery (seized vessel) €12,000 |
Nil |
N/A |
|
Social Finance Foundation |
Building €670.68
Public Liability €2,158.80 |
Building €619.37
Public Liability €2,158.80 |
Nil |
Nil |
288. Deputy Niamh Smyth asked the Minister for Finance if the Central Bank has a policy on whether ATMs should dispense €50 notes to customers instead of €20 notes; the practice of retail banks here in dispensing notes; the breakdown of actual notes dispensed in counties Cavan and Monaghan; and if he will make a statement on the matter. [34008/18]
Amharc ar fhreagraThe Central Bank has set targets for the banks to achieve by the end of 2018 in terms of issuance of €10, €20 and €50 notes from non-retailer ATMs, with a view to making lower denomination notes more available to cash users. These targets were calculated following a study of the requirements of consumers, given patterns of cash usage.
The targets are that 6-10% of all notes by volume are to be €10 notes by the end of 2018, 40-45% of all notes by volume are to be €20 notes, and 45-50% of all notes by volume are to be €50 notes. The latest available data, for Q1 2018, on amounts actually dispensed show that 7% of all notes are €10 notes, 36% of all notes are €20 notes and 57% of all notes are €50 notes. I am informed that this data is collected on a national basis and that it is not possible to provide data on a county-by-county basis.
The Central Bank requests regular updates from the commercial banks on their progress towards achieving these targets and continues to challenge them in relation to the number of €10 and €20 banknotes being dispensed from their ATMs. This topic is a regular agenda item at the National Cash Forum which is chaired by the Central Bank, and is also discussed at bilateral meetings with banks by the Central Bank.
289. Deputy Niamh Smyth asked the Minister for Finance his plans to tackle the problem of illegal moneylenders; and if he will make a statement on the matter. [34017/18]
Amharc ar fhreagraThe Central Bank regulates the licensed moneylender sector. It is, of course, a criminal offence for an unauthorised firm/person to provide financial services in Ireland that would require an authorisation under the relevant legislation which the Central Bank is the responsible body for enforcing. The Central Bank has no power or regulatory role in in respect of illegal moneylending. The activities of anyone undertaking moneylending without the appropriate authorisation falls under the jurisdiction of An Garda Síochána, who are the most appropriate State body to investigate criminal matters.
Where the Central Bank becomes aware of the suspected provision of unauthorised moneylending services to the public, it refers the matter to An Garda Síochána for criminal investigation. Since 2004, the Central Bank has received 11 complaints in relation to unauthorised money lending activity, all of which were referred to an Garda Síochána.
290. Deputy Niamh Smyth asked the Minister for Finance if officials from his Department met with hauliers or an organisation (details supplied) in view of Brexit; and if he will make a statement on the matter. [34018/18]
Amharc ar fhreagraI can confirm that neither I, nor officials of my Department, have met with the organisation referred to by the Deputy in relation to Brexit.
291. Deputy Niamh Smyth asked the Minister for Finance the financial institution that has ownership of a hotel (details supplied); and if he will make a statement on the matter. [34019/18]
Amharc ar fhreagraAs the deputy is aware I have no role in the day to day operations of any retail and commercial bank operating in the State. Moreover the responsibility for the management of individual assets and exposures in the banks is the responsibility of the board and management of each respective institution and consequently the information which the deputy requests is not held within my Department.
292. Deputy Niamh Smyth asked the Minister for Finance the number of persons in counties Cavan and Monaghan who availed of the option to have their property tax deferred until 2019; the reason stated for the deferral; and if he will make a statement on the matter. [34021/18]
Amharc ar fhreagraPart 12 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a deferral or partial deferral (50%) of LPT in certain circumstances. These circumstances include ‘Income Level’, ‘Hardship’, ‘Personal Insolvency’ and ‘Personal Representative of a Deceased Person’.
Once granted, a deferral normally remains in place for the duration of the ‘valuation period’, which is currently 1 May 2013 to 31 October 2019. However, property owners can opt to pay the outstanding liability at any time and discontinue with the deferral.
Where a deferral is in place, the outstanding liability remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged on the deferred amount at a rate of 4% per annum.
I am advised by Revenue that the number of deferrals currently in place in counties Cavan and Monaghan is as set out in the following table.
|
Local Authority |
Income Levels/ Hardship |
Personal Insolvency |
Rep. Deceased Person |
Total |
|
Cavan |
1,130 |
19 |
14 |
1,163 |
|
Monaghan |
860 |
12 |
14 |
886 |
Revenue has recently published detailed LPT statistics in respect of 2017, which may be of interest to the Deputy. The information can be accessed via the following link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/index.aspx.
293. Deputy Niamh Smyth asked the Minister for Finance the number of persons who have applied under the first time buyers scheme as announced in budget 2017; the counties they applied from in tabular form; and if he will make a statement on the matter. [34022/18]
Amharc ar fhreagraThe Help To Buy (HTB) incentive, announced in Budget 2017 (October 2016), is designed to assist first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home.
The incentive provides for a refund of income tax and DIRT paid over the previous four tax years, limited to a maximum of 5% of the purchase value up to a value of €400,000. The HTB refund is capped at €20,000.
The incentive is available for the period from 19 July 2016 to 31 December 2019.
To the end of June 2018, 7,753 HTB claims had been made (of which 7,220 were approved). The value of approved HTB claims to the end of June 2018 is some of €104.3 million, of which €17.7 million represents retrospective claims (for the period 19 July to 31 December 2016).
The breakdown of HTB claims made by county is as follows:
|
County |
Claims Made |
|
Carlow |
53 |
|
Cavan |
51 |
|
Clare |
101 |
|
Cork |
712 |
|
Donegal |
70 |
|
Dublin |
2,848 |
|
Galway |
309 |
|
Kerry |
65 |
|
Kildare |
756 |
|
Kilkenny |
60 |
|
Laois |
108 |
|
Leitrim |
21 |
|
Limerick |
242 |
|
Longford |
27 |
|
Louth |
210 |
|
Mayo |
102 |
|
Meath |
917 |
|
Monaghan |
57 |
|
Offaly |
70 |
|
Roscommon |
49 |
|
Sligo |
45 |
|
Tipperary |
129 |
|
Waterford |
181 |
|
Westmeath |
99 |
|
Wexford |
115 |
|
Wicklow |
356 |
As the Deputy may be aware, my Department has recently commissioned an independent Cost-Benefit Analysis of the incentive. That analysis is currently underway and is due to be completed in advance of Budget 2019.
294. Deputy Niamh Smyth asked the Minister for Finance his plans to increase the excise fuel duty to the freight industry; and if he will make a statement on the matter. [34063/18]
Amharc ar fhreagraAs the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.
295. Deputy Niamh Smyth asked the Minister for Finance the status of the measures that have been taken to meet and engage with insurance companies here regarding excessive premiums being charged to consumers, particularly in counties Cavan and Monaghan. [34064/18]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank can interfere in the pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on the risks they are willing to accept.
However, it is acknowledged that pricing in the motor insurance sector has been subject to a lot of volatility in recent years, from a point where some premiums appeared to be priced at an unsustainably low level to the more recent experience of large increases.
Indeed, the problem of rising motor insurance premiums was the main impetus for the establishment of the Cost of Insurance Working Group, which is now chaired by the Minister of State for Financial Services and Insurance, Mr. Michael D’Arcy T.D. Its Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, set out within an Action Plan. The Working Group continued its work throughout 2017 and subsequently published the Report on the Cost of Employer and Public Liability Insurance in January 2018.
Stakeholder consultation formed the foundation upon which the Working Group’s two Reports and their recommendations were developed. This consultation process undertaken by the Working Group involved a wide range of stakeholders representing the different voices within this sector, including Insurance Ireland and the major individual motor insurance providers. The impact of excessive premiums being charged to consumers from all over the country was a feature of this engagement process with industry.
In addition, my officials regularly raise specific issues affecting consumers across the country during their ongoing engagement with Insurance Ireland, including within a sub-group formed to implement relevant consumer-focused recommendations from the Motor Report.
Furthermore, Minister of State D’Arcy has separately met with representatives from insurance companies and other relevant stakeholders in relation to a number of issues and the problems resulting from high insurance premiums have been discussed during these engagements.
296. Deputy Barry Cowen asked the Minister for Finance the location in which the €400 million Bord Gáis proceeds reside; if it is held by ISIF and-or the NTMA; the annual rate of return earned on the €400 million since the proceeds were received from the sale; the intended use for the €200 million left after the pilot social housing project (details supplied); and if he will make a statement on the matter. [34175/18]
Amharc ar fhreagraThe €400 million referred to by the Deputy in his question is a subset of the approximately €940 million purchase price paid for Bord Gáis Energy. It was agreed that, in total, approximately €1 billion (broadly equivalent to the purchase price) of special dividends would be paid by Ervia to the Exchequer arising from the sale of Bord Gáis Energy, on a phased basis over time.
The special dividends of approximately €1 billion can be divided into two categories:
(i) Distribution of the net sale proceeds of €648 million by way of special dividends from Ervia to the Exchequer, based on a payment schedule agreed with Government in order to maximise the potential to use the funds in a GGB efficient manner. A total of €450 million of this amount has been paid to date - an initial special dividend of €150 million in 2014, followed by further annual payments of €100 million in 2015, 2016 and 2017. A further €90 million is expected to be paid in 2018 with the balance to be remitted over 2019/2020.
(ii) Payment of additional special dividends by Ervia to the Exchequer of €330 million, as the debt originally associated with the Bord Gáis Energy business that was repaid from the sale proceeds is effectively replaced over time, in a prudent manner that continues to protect Ervia/GNI's investment grade credit rating (which is important in ensuring a low cost of debt and access to funding in its strategically important gas network infrastructure). These payments, which commenced in 2017, are expected to continue for around 20 years and are being utilised by Government to support additional activity in its housing programmes, which are a matter for the Minister for Housing, Planning and Local Government.
The annual rate of return on the amounts that have been transferred to the Exchequer to date would be equivalent to the cost of issuing debt instead of utilising these funds for expenditure on public services. This cost has been approximately 1% per annum for recent debt issuances. The annual rate of return for the funds that remain to be paid by Ervia would be the return earned by Ervia.
It should be noted that a key consideration in the structuring of these dividend payments is that under Eurostat rules, the beneficial impact of dividend payments by State companies (including proceeds from asset disposals) for General Government Balance (GGB) purposes is limited by reference to the entrepreneurial income of the company in the previous year (effectively its profits before tax). Any dividend paid in excess of the company’s entrepreneurial income is regarded as a withdrawal of capital, rather than as income, and as such has no impact on the GGB.
In order to comply with the fiscal rules of the Stability and Growth Pact, the scope for the Government to use such dividends for additional expenditure on a general government neutral basis was (and is) therefore limited to the amount by which the dividends paid actually improved the GGB. This meant that in order to take maximum advantage of the asset disposal proceeds, the Government cannot avail of the full proceeds all at once, but rather the proceeds must be remitted to the Exchequer over a number of years as has been set out above.
297. Deputy Michael McGrath asked the Minister for Finance the number of mortgage loans in receipt of mortgage interest relief for a principal dwelling; the number of persons benefitting from mortgage interest relief on their principal dwelling house mortgage; the projected cost of principal dwelling mortgage interest relief in 2018; and if he will make a statement on the matter. [34197/18]
Amharc ar fhreagraI am advised by the Revenue that the number of mortgage loans in receipt of mortgage interest relief under the provisions of Section 244 of the Taxes Consolidation Act 1997 is currently 277,387. The number of persons currently benefitting from mortgage interest relief is 406,021.
The estimated cost of Mortgage Interest Relief (MIR) in 2018 is €124m, while the projected cost of MIR in 2019 is €78m.
298. Deputy Michael McGrath asked the Minister for Finance the steps the Central Bank is taking to prevent dual pricing of insurance policies whereby teaser rates are offered in the first year; his views on the use of such a pricing model; if the Central Bank has powers to prevent this from taking place; his views on whether new and existing insurance customers should be treated the same; and if he will make a statement on the matter. [34198/18]
Amharc ar fhreagraEnsuring that the interests of consumers of financial services are protected continues to be a key priority for the Central Bank. While the Central Bank does not have a role in relation to pricing considerations or competitiveness, it does have a role in ensuring that firms assess risks appropriately and offer motor insurance at a price that adequately takes into account the conditions prevailing in the market such as increasing claims costs. This ensures firms have the ability to pay all policyholders claims without recourse to public funds.
The Central Bank does not have a role in the setting of premiums, and like all European supervisory authorities, is explicitly prohibited by Article 181 of the Solvency II Directive from doing so.
However, the statutory Consumer Protection Code contains requirements in relation to the disclosure of charges and insurance quotes. Section 2.6 provides that a regulated firm must make “full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer”.
In addition, under section 4.30 “A regulated entity providing an insurance quotation to a consumer must include the following information in the quotation, assuming that all details provided by the consumer are correct and do not change:
1. the monetary amount of the quotation;
2. the length of time for which the quotation is valid; and
3. the full legal name of the relevant underwriter.
299. Deputy Jack Chambers asked the Minister for Finance his Department's spending on travel and subsistence expenses in 2017 and to date in 2018. [34214/18]
Amharc ar fhreagraThe costs incurred by my Department on travel and subsistence expenses for 2017 and 2018 year to date are set out in the following table.
|
|
2017 |
2018 |
|
Travel & Subs |
366,325 |
234,839 |
