Written Answers Nos. 129-148
129. Deputy John Curran asked the Minister for Finance if the way in which insurance cover could be put in place for customers of a company (details supplied) that had previously latent defect and structural warranty insurance with this company before it ceased trading will be examined; his plans to facilitate arranging insurance cover for the customers; and if he will make a statement on the matter. [2749/19]
Amharc ar fhreagraAt the outset I would like to say that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation, and have no role in the day to day supervision of insurance companies . The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. Neither I, as Minister for Finance, nor the Central Bank can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses.
In preparing a response to this PQ, my officials sought an update from the Central Bank of Ireland on Alpha Insurance. The Central Bank has advised me that it was notified by the Danish Financial Supervisory Authority ("DFSA") on 7 March 2018 that the latter had ordered Alpha Insurance A/S (“Alpha”) to cease writing new business including renewal of existing contracts and business with immediate effect. It was further notified on 9 May 2018 that the liquidators of the insurance company Alpha had filed a petition for bankruptcy.
The Central Bank has also indicated that as Alpha is a Danish-based insurance firm, it is subject to prudential supervision by the DFSA, and therefore it had no role in this decision. It has also informed me that Alpha was selling non-life insurance policies in Ireland through the broker network on a freedom of services basis and that it also operated in Denmark, France, Germany, Greece, Italy, Norway, Spain and the United Kingdom.
The insolvency administrator has provided updated figures to the Central Bank as of December 2018 on the latent defects policies. Present figures stand at 1,617 policies, 1,163 of which are currently with the homeowner (these policies were transferred from the developer to the homeowner following completion of the build). The remaining 454 policies were on houses that were not finished and therefore the policy had not transferred to a homeowner at the time of the liquidation i.e. the policy remained with the developer.
The claims handler (BCR Legal Group Limited) confirmed that its representative CRL wrote to the developers who had purchased these latent defects policies, on two occasions, to advise that Alpha had been placed in bankruptcy, that polices would be cancelled from 11 August 2018 and to request details of the owner of the properties insured under these policies. BCR subsequently wrote to all homeowners affected by the liquidation of Alpha, following receipt of their details from the developers, to advise that Alpha had gone into liquidation, their latent defects policies had been terminated and that they should consider replacing this policy. BCR also provided these homeowners with an information sheet from the liquidators. BCR can be contacted at policyupdates@bcr.co.uk.
It should be noted that the Danish liquidator of Alpha continues to provide country-specific updates of the latent defects policies on https://alphagroup.dk. The Central Bank of Ireland has also published information in relation to Alpha, which it will update if further information becomes available.
In conclusion, I acknowledge that this is an unfortunate position that these householders have found themselves in however as Minister for Finance I am not in a position to facilitate the arranging of new insurance cover.
130. Deputy Robert Troy asked the Minister for Finance if his officials have met with or made representations to the relevant EU and UK officials to ensure that the United Kingdom recognises the legal requirements such as the Authorised Economic Operator, AEO, qualification for Irish hauliers transiting through the UK following its decision to leave the EU. [2753/19]
Amharc ar fhreagraI am advised by Revenue that while Customs legislation and procedures are applied and executed by the Member State’s (MS) Customs authorities acting in their own capacity, Customs is the sole competence of the EU. The Union Customs Code (UCC) which came into force on 1 May 2016 is the legal framework for Customs and this sets out the customs procedures across the EU. Revenue participate in regular meetings with their MS counterparts to ensure a common interpretation of customs matters in line with the UCC and a consistent approach to its implementation.
The UCC provides for certain simplifications, procedures and authorisations that can further facilitate trade. The Authorised Economic Operation (AEO) is one such authorisation. I am advised by Revenue that recognition of authorisations post-Brexit, including AEO status, will be a matter for the UK and the EU and mutual recognition of the AEO status will form part of the future trading relationship negotiations between them. There has been no decision to date in relation to mutual recognition of AEO status in a no-deal scenario.
Revenue have clarified that it is not necessary to avail of any of the specific trade facilitation measures allowable under the UCC such as AEO status in order to trade with a non-EU country. The only requirement for businesses that wish to trade with a non-EU country is that they obtain an Economic Operators’ Registration and Identification (EORI) number from Revenue. This is a straight forward process and can be applied for online via the Revenue website.
131. Deputy Michael McGrath asked the Minister for Finance the revenue generated from non-residential property stamp duty in each of the years 2015 to 2017; and if he will make a statement on the matter. [2792/19]
Amharc ar fhreagraI am advised by Revenue that receipts from Stamp Duty on non-residential property in the years 2015 to 2017 are as provided in the table.
|
Year |
Stamp Duty on non-residential property |
|
2015 |
€178 m |
|
2016 |
€256 m |
|
2017 |
€206 m |
The latest Revenue figures show that just over €489 million was collected under this heading in 2018.
In the year to end-December 2018, €661 million was collected by Revenue in property related stamp duty (both residential and non-residential).
The principal aim of the stamp duty increase I announced in Budget 2018 was to help encourage increased home building and to stabilise the Irish property market. I consider that this it has made a positive contribution in this regard, with an increase in new home building seen in 2018, particularly in Dublin, and with house price inflation slowing.
132. Deputy Pearse Doherty asked the Minister for Finance the purpose of the guidance note titled Minister for Finance’s Approval of Transfers of Banking Business under Part III of the Central Bank Act 1971, published on 7 January 2019; the way in which this note changes the current requirements; and if he will make a statement on the matter. [2852/19]
Amharc ar fhreagraI wish to clarify for the Deputy that the recent guidance note on 'Transfers of Banking Business under Part III of the Central Bank Act 1971' published by my Department does not in any way change the requirements in relation to seeking the approval of the Minister for Finance as set out in the Central Bank Act 1971 (as amended). Rather this guidance note is intended to bring clarity to this process for any Irish authorised bank considering seeking my approval as Minister to transfer their business to another authorised institution. In particular the note seeks to highlight the timelines involved in the process, and to encourage any bank considering transferring its business to engage with my Department at an early stage.
My officials must undertake an analysis of the proposed transfer and prepare a submission to me. This analysis may necessitate follow up with the bank in question, including queries on the transfer, and my officials may request written information notes, telephone calls or face-to-face meetings.
I must also consult with the Governor of the Central Bank of Ireland on any proposed transfer of banking business, so as to be fully informed of the relevant regulatory, supervisory and prudential considerations, and sufficient time must be allocated to allow me to do this.
The Statutory Instrument pertaining to the transfer of business must be drafted by the Office of the Parliamentary Counsel, and again sufficient time should be allocated.
The statute sets out a deadline that, “the Minister, after consultation with the Bank, may, not less than two months before the transfer date, either approve of or decline to approve of the scheme by order”. To allow sufficient time for the necessary processes, my Department recommends submitting the transfer proposal with a minimum of two months’ notice prior to the deadline (i.e. at least four months before the proposed transfer date). However, earlier submission is strongly advised.
Because the Central Bank does not disclose confidential information, neither I nor my officials will be aware of any proposed transfers of banking business until the proposal is submitted to me directly. Any bank considering transferring its business should engage with both my Department of Finance and the Central Bank at an early stage in the process.
I made Orders approving two transfers of banking business in 2018, both in the context of the Brexit preparations of the banks involved.
133. Deputy Pearse Doherty asked the Minister for Finance the number of social homes and affordable homes, respectively, that have been built by NAMA debtors since its launch. [2854/19]
Amharc ar fhreagra134. Deputy Pearse Doherty asked the Minister for Finance the number of homes built by NAMA debtors since its launch; and the number of these homes built under Part V of the Planning and Development Act 2000. [2855/19]
Amharc ar fhreagra135. Deputy Pearse Doherty asked the Minister for Finance the number of units per development (details supplied) that have been allocated to the various local authorities under Part V agreements; and the agreement which was reached in place of an allocation of units. [2856/19]
Amharc ar fhreagraI propose to take Questions Nos. 133 to 135, inclusive, together.
I am advised that NAMA funded the delivery of 9,669 homes by its debtors and receivers between January 2014 and December 2018.
I am advised that debtors and receivers whose projects are funded by NAMA must comply with the same statutory obligations in relation to Part V of the Planning and Development Act 2000 as all other residential developers. The Deputy will be aware that legislation covering Part V obligations has been amended over the years. In many cases, even residential developments currently under construction may relate to older planning permissions granted at a time when legislation provided that Part V obligations could be fulfilled through a range of options, including monetary payments to local authorities, the transfer of land, the construction and transfer of houses on-site, the transfer of houses off-site or a combination of two or more options. I am also advised that, for some NAMA-funded developments, the Part V obligations had already been met prior to the transfer of the associated loans to NAMA.
The specific means by which Part V obligations are met is the subject of negotiation between the developer and the local authority in each particular instance and ultimately it is for the local authority to determine its preference, based on its own criteria and circumstances. In relation to NAMA-funded projects, I am advised that NAMA does not participate in those negotiations. On a project-by-project basis, NAMA supports and facilitates debtors and receivers in meeting their Part V obligations, however given the broad range of options that have been open to debtors in meeting those obligations in the past, NAMA does not track the overall delivery of Part V obligations which is a matter for the local authorities.
The Deputy will be aware that there is no statutory obligation on developers to provide affordable homes. Debtors and receivers funded by NAMA are no different in this respect from developers whose funding is from other sources.
I would point out to the Deputy that, since 2012, NAMA has worked with its debtors and receivers to deliver social housing units beyond the requirements of Part V. The purpose of its social housing initiative was to maximise social housing delivery from the assets securing NAMA’s loan portfolio. Through this programme, NAMA has delivered 2,481 units directly through approved housing bodies (AHBs), local authorities and its special purpose vehicle, NARPS.
As regards the Deputy’s question in relation to a number of named development sites, the Deputy will be aware that I am prohibited from providing information on specific assets under the control of NAMA debtors and receivers as such information is considered to be confidential by reference to Sections 99 and 202 of the NAMA Act 2009. Agreements reached between local authorities and developers in relation to the fulfilment of Part V obligations are a matter for the parties involved.
136. Deputy Pearse Doherty asked the Minister for Finance the date NAMA will be wound up; and if he will make a statement on the matter. [2857/19]
Amharc ar fhreagra137. Deputy Pearse Doherty asked the Minister for Finance the plans which have been put in place for the wind-down of NAMA; and if he will make a statement on the matter. [2858/19]
Amharc ar fhreagraI propose to take Questions Nos. 136 and 137 together.
I wish to advise the Deputy that it is expected that NAMA will substantially complete its work by 2020/2021. NAMA is on track to have repaid all its subordinated debt and to have reimbursed the private shareholders in the NAMA DAC by that time. NAMA will have also substantially completed its residential funding programme and its Dublin Docklands SDZ programme. Once these activities have been completed NAMA will be in a position to start transferring its expected €3.5bn surplus to the Exchequer.
As the expected wind down date for NAMA’s work approaches, there is a possibility that a small number of loans may not be resolved by 2021 due to ongoing litigation that is largely outside NAMA’s control. In addition, there is a possibility that NAMA may also be left with a small residual loan portfolio where best value for the State may not be achieved through sale or disposal before the end of 2021. Such assets are currently expected to represent less than 1% of NAMA’s original portfolio.
Active consideration is underway regarding NAMA’s end of life strategy and the maximisation of the return of any surplus to the State in respect of these remaining assets. These considerations will be examined in my forthcoming Section 227 review of NAMA. This review is required every 5 years under the NAMA Act to assess the extent to which NAMA has made progress towards achieving its overall objectives and to decide whether the continuation of the agency is necessary. The previous Section 227 review was published in 2014 and current review is due to be published later this year. I intend to use the publication of the next Section 227 review to make a decision as to how to best wind down NAMA in the context of the need to ensure that the State extracts maximum value from any residual assets remaining after 2020/2021.
138. Deputy Pearse Doherty asked the Minister for Finance the number of debtors left in NAMA; the par value of the debt; and if he will make a statement on the matter. [2859/19]
Amharc ar fhreagraI am advised by NAMA that, as at November 2018, there were 223 debtors remaining under management. Of these connections, 139 were in support or forbearance strategies and 84 were subject to enforcement. At the same date, these debtors had a combined par debt balance of €23.9bn. The value of the assets securing this debt is very low and NAMA is working to maximise the amount of debt that can be recovered for taxpayers. Such work includes negotiating effective workout strategies with debtors and receivers and providing funding for investment in assets where it will enhance value. I am advised that, in the end-year review that it recently issued, NAMA indicated that its portfolio had an estimated carrying value of €2.3 billion at the end of 2018.
139. Deputy Pearse Doherty asked the Minister for Finance the number of staff left in NAMA; the number that will be made redundant in 2019; and if he will make a statement on the matter. [2860/19]
Amharc ar fhreagra140. Deputy Pearse Doherty asked the Minister for Finance the amount paid in redundancy or severance to former staff of NAMA; the amount paid to incentivise staff to remain with the agency; and if he will make a statement on the matter. [2861/19]
Amharc ar fhreagraI propose to take Questions Nos. 139 and 140 together.
The NAMA Voluntary Redundancy Scheme (“VRS”) was first approved by the NAMA Board in 2015. The nature of the redundancy payments has previously been outlined to the Dáil and is in keeping with established public sector norms; that is, two weeks statutory pay per year of service, capped at €600 per week, plus three additional weeks of base salary per year of service with an overall cap of two years base salary.
NAMA has advised that the retention portion of the scheme is being implemented in line with the stipulated parameters, agreed by the previous Minister for Finance and NAMA in March 2015, regarding the quantum of any payment under the scheme, the timing of any such payment and employee eligibility under the scheme. Retention payments are only made where staff are departing the organisation under the Agency's redundancy programme. The retention payment for individual staff is dependent on NAMA achieving its targets and on satisfactory individual performance ratings.
A breakdown of the costs of the scheme to date is provided in the table following. It should be noted that included in the total VRS costs are costs associated with garden leave for employees departing under the scheme as well as statutory and other redundancy costs and a retention payment, if applicable.
|
Year |
Voluntary Redundancy Scheme (VRS) Costs €m |
Retention Payments (included in total VRS costs) €m |
|
2015 |
3.6 |
1.0 |
|
2016 |
3.9 |
0.8 |
|
2017 |
0.8 |
0.2 |
|
Total * |
8.3 |
2 |
*the final figures for the 2018 VRS have not yet been finalised.
I am advised that as at 31 December 2018, 238 staff were assigned to NAMA. I am advised that it is not yet possible to estimate the exact number of NAMA staff expected to take voluntary redundancy in 2019. Any future schemes will take into account the ongoing business needs of the Agency at that time, as determined by the NAMA Board’s objectives. The Deputy will be aware that as Minister, I have no role in respect of NAMA's commercial operations or decisions, including determining NAMA's staffing numbers and redundancy requirements, which are internal considerations for the NAMA Chief Executive and Board.
141. Deputy Michael McGrath asked the Minister for Finance when he plans to publish the stability programme update 2019 setting out the macroeconomic and fiscal projections for different Brexit scenarios, including a no-deal, cliff edge Brexit; and if he will make a statement on the matter. [2862/19]
Amharc ar fhreagraIn accordance with the requirements of the European Semester, the stability programme update (SPU) 2019 will be published before the end of April 2019.
As was the case for Budget 2019, the SPU macroeconomic and fiscal projections will incorporate the latest information on the macroeconomic impacts of the UK’s most likely exit scenario, and will also include sensitivities around this ‘baseline’ assumption.
142. Deputy Michael McGrath asked the Minister for Finance his views on the proposed amendments to the Excise Structures Directive 92/83/EEC being considered by the EU Council and which will allow member states to reduce excise tax rates for small cider producers; and if he will make a statement on the matter. [2872/19]
Amharc ar fhreagraEU Directive 92/83/EEC deals with the harmonization of the structures of excise duties on alcohol and other alcoholic beverages. This Directive provides that Member States may apply reduced rates of excise for small beer producers, an option which Ireland has exercised.
A proposal to amend the EU Directive 92/83/EEC was published by the European Commission in 2018. The legislative proposal includes an option for Member States to apply reduced rates of excise for cider.
This is currently being considered at EU level as part of the overall Commission proposal, of which Ireland is broadly supportive. If agreement is reached at EU level on the proposed amendment, it will be a matter for each Member State, during the course of transposing the amended Directive, to decide whether it wishes to exercise the option of applying reduced rates of excise for qualifying small producers of cider, and any other type of drinks which the EU legislature may wish to include within the amended Directive.
144. Deputy James Browne asked the Minister for Finance if the attention of the Revenue Commissioners has been drawn to the delays experienced by persons using a telephone number (details supplied); and if he will make a statement on the matter. [2911/19]
Amharc ar fhreagraI am advised by Revenue that the telephone number quoted by the Deputy is the National PAYE Customer Helpline, which deals with a range of queries from PAYE employees such as tax credit entitlements, credit allocations across employments and tax overpayment or underpayment situations.
The demand for this service is traditionally highest in the early months of each year when PAYE customers review their tax paid for the previous year or query any tax related changes to their take home pay. The service has experienced particularly heavy demand in recent weeks and is currently dealing with approximately 4,500 telephone calls per day in addition to almost 2,000 visits per day to local offices and approximately 5,000 items of on-line and paper correspondence per day. A significant portion of the additional demand has arisen from employers updating their employee records in late 2018 in advance of the move to real-time reporting on 1 January 2019 under PAYE Modernisation.
Revenue is fully aware of the recent difficulties being experienced by some PAYE customers in accessing the service and has redeployed significant resources to meet the demand. The additional resources bring the number of telephone operatives on the Helpline to over 200, which will reduce waiting times and the delays to which the Deputy is referring. Revenue has also confirmed that it will continue to monitor the demand levels each day and will further increase resources should it be necessary to do so.
145. Deputy Louise O'Reilly asked the Minister for Finance the percentage of illicit tobacco products and non-Irish paid tobacco here; the percentage of these products that are cigarettes, illicit whites and counterfeit or the relevant applicable breakdown for same in tabular form; and if he will make a statement on the matter. [3077/19]
Amharc ar fhreagraI am advised by Revenue that it jointly conducts an annual survey with the HSE’s Office of Tobacco Control to provide an estimate of the level of illegal tobacco usage in Ireland.
The 2017 ‘Illegal Tobacco Products Research Survey’ contains the information requested by the Deputy for the years 2009 to 2017 and is available on the Revenue website at link: https://www.revenue.ie/en/corporate/documents/research/illegal-tobacco-survey-2017.pdf .
Results from the 2018 survey, which was carried out in October and November of last year, are currently being analysed and will be published in due course.
146. Deputy Robert Troy asked the Minister for Public Expenditure and Reform if he is proceeding with plans to purchase land at Rosslare and Dublin Ports for the purposes of constructing new customs facilities; and if he will make a statement on the matter. [2340/19]
Amharc ar fhreagra156. Deputy James Browne asked the Minister for Public Expenditure and Reform when the detailed action plan on the requirements of Rosslare Europort in advance of Brexit is due for publication and or finalisation; and if he will make a statement on the matter. [2586/19]
Amharc ar fhreagra157. Deputy James Browne asked the Minister for Public Expenditure and Reform if the OPW has acquired property, by lease, purchase or otherwise at Rosslare in the past 12 months; if so, the exact location of the property; the nature of the acquisition; the cost of same; and if he will make a statement on the matter. [2588/19]
Amharc ar fhreagraI propose to take Questions Nos. 146. 156 and 157 together.
On the 19 December 2018, the Government published its Contingency Action Plan which gives an overview of the comprehensive, cross-Government preparations that are underway. This includes putting in place the infrastructure required at Dublin ports and airports as a consequence of the UK leaving the EU.
The Office of Public Works has been mandated to secure the property required at Dublin Port and Rosslare Europort and to undertake the necessary work to ensure that the additional infrastructure required as a consequence of the UK leaving the EU becomes operational in a timely manner. This work is ongoing.
147. Deputy Catherine Martin asked the Minister for Public Expenditure and Reform if applications for the tax saver ticket scheme can be opened all year around to members of the Civil Service; and if he will make a statement on the matter. [2577/19]
Amharc ar fhreagraI have raised this matter with the National Shared Services Office (NSSO), which is a Scheduled Office under the aegis of my Department.
I understand from the NSSO that the Tax Saver Scheme is available to all serving permanent Civil Servants. There are two periods of application during which Civil Servants can avail of this 12-month scheme: July – June and January – December. An open-ended application system was given consideration but it was determined that this would lead to an increase in the cost and complexity of the implementation of the scheme.
Exceptional circumstances do occur, and with the support of the relevant Department issuing payment, officers can avail of this scheme outside the bi-annual application window in those circumstances. The priority is to continue to provide the service to customers in a timely and cost-efficient fashion within dedicated timeframes, with the option where Departments may allow for exceptions to this year-round in exceptional circumstances.
148. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the contingencies being taken to secure PEACE IV funding beyond 2020 in the event a no-deal Brexit. [3084/19]
Amharc ar fhreagraThe Irish Government’s clear and consistent position has been that it is committed to the successful implementation of the current PEACE and INTERREG programmes and to a successor programme post-Brexit. I am pleased, therefore, that the Government’s ambition for the programmes was reflected in the EU-UK Joint Report on Brexit in which both parties undertook to honour their commitments to the PEACE and INTERREG programmes under the current Multiannual Financial Framework and to examine the possibilities for future support favourably.
As regards the current PEACE and INTERREG programmes, the draft Withdrawal Agreement between the EU and the UK provides that UK involvement in the current programmes will continue up to their normal completion.
As regards a no-deal scenario, the Commission brought forward a proposal last month for a specific Regulation to enable the PEACE and INTERREG programmes to continue in such a situation. This proposal, which I welcome, will give legal certainty to the programmes in the event of no-deal.
Turning to a future programme, I am very pleased that when the Commission published its proposals for the next round of Cohesion policy last May it included a specific proposal for a special new PEACE PLUS programme to build on and continue the work of both PEACE and INTERREG.
