Written Answers Nos. 433-450
434. Deputy Sean Sherlock asked the Minister for Finance the number of contracts approved in his Department in 2019 and to date in 2020 without competitive tender; the details of the contract; the company awarded the contract; the Public Service Stability Agreement 2018 – 2020 and the full value of the contract in tabular form. [33271/20]
Amharc ar fhreagraThe following tabled procurements were undertaken without competitive procurement in 2019 and to date in 2020:
|
Year |
Company Name |
Contract / Agreement Details |
Contract Value |
|
2019 |
Lilley Ventures t/a Workproducts Inc. |
Matterspace Software Tool Licence renewal. 12 months unlimited software usage and maintenance. Renewal of software licence was critical in connection with the document searches for the IBRC Commission of Investigation. |
€8,736.03. |
|
2019 |
Z/Yen Group of Companies |
Annual Membership of the Vantage Financial Centres Club. March 2019 to February 2020.Only one supplier of this service. |
€23,313.93 |
|
2019 |
Vodafone Ireland |
Provision of certain international mobile services, and handsets as required. (Contract commenced end 2018 – payments of €2,218.40 relate to this 2018 in addition to 2019 figure.) The Department will be undertaking a competitive tendering process for these services in Q1, 2021. |
€10,493.65 |
|
2019 |
EuroText |
Foreign Language translation service required in respect of European Court legal documents. Contract signed in 2019. |
€75,579.49(Cumulative value of payments from 2016 to June 2020) |
|
2019 |
Dublin Castle |
Dublin Castle was contracted to host the National Economic Dialogue on 26/27 June 2019. |
€1 |
|
2019 |
Economic & Social Research Institute |
Joint Research Programme on the Macroeconomy, Taxation and Banking with ESRI. Annual contract where budget and project scope reviewed by Steering Committee each year. Competitive tendering process not required as under EU Public Procurement regulations, contracts involving research and development are specifically excluded from the regulations. |
€235,144 |
|
2020 |
Lilley Ventures t/a Workproducts Inc. |
Matterspace Software Tool Licence renewal. 24 months unlimited software usage and maintenance. Renewal of software licence was critical in connection with the document searches for the IBRC Commission of Investigation. |
€17,928.88. |
|
2020 |
Vodafone Ireland |
Provision of certain international mobile services, and handsets as required. The Department will be undertaking a competitive tendering process for these services in Q1, 2021. |
€18,516.46 |
|
2020 |
Safesend, J2 Global Ireland t/a VIPRE |
Safesend - a data loss prevention add-on for Microsoft Outlook for risk mitigation purposes. 12 month contract Only one suitable supplier. |
€7,128.58 |
|
2020 |
Revolut Ltd |
Aggregated data on spending to assist in the economic analysis of the Covid-19 impact. (Services from May – August) |
Pro bono contract(Nil payments) |
|
2020 |
Capital Economics |
Subscription service providing daily macroeconomic data updates and analysis (12 month contract) |
€15,000 |
|
2020 |
Brambles Deli Café Ltd. |
Catering for official engagement in Farmleigh House. Department was required to use named supplier as it was already contracted to cater for another event at the same venue on the same day. |
€1,302.35 |
|
2020 |
Economic & Social Research Institute |
Joint Research Programme on the Macroeconomy, Taxation and Banking with ESRI. Competitive tendering process not required as under EU Public Procurement regulations, contracts involving research and development are specifically excluded from the regulations. |
Payment to date - €147,974 Anticipated full year contract value - €275,000 |
|
2020 |
McCann Fitzgerald |
Procuring on behalf of the Department legal advice from foreign counsel from three European jurisdictions and provision of supplementary Irish legal advice. Indefinite contract duration (provision of specified work product rather than services for a particular duration) |
€21,304.90 |
|
2020 |
McCann Fitzgerald |
Procuring on behalf of the Department supplementary legal advice from foreign counsel from three European jurisdictions. Indefinite duration (provision of specified work product rather than services for a particular duration). |
Fee estimate: €24,500-€26,500 Nil fees discharged to date. |
|
2020 |
Financial Times Limited |
Online Subscriptions to Financial Times. 12 month contract. Only one supplier for this service. |
€21,394.00 |
435. Deputy Ged Nash asked the Minister for Finance his views on correspondence of 23 September 2020 issued to his office; if he will consider introducing measures in the Finance Bill to modify the benefit in kind in terms of use of the small benefit exemption gift card initiative with a current limit of €500 in order that the benefit remains in the State; if he will consider limiting the use of the scheme to those gift card companies that prohibit international spend in the interests of supporting retail jobs and businesses across the State; and if he will make a statement on the matter. [33364/20]
Amharc ar fhreagra437. Deputy Ged Nash asked the Minister for Finance his views on correspondence of 23 September 2020 (details supplied) issued to his office; if he will consider introducing measures in the Finance Bill to modify the benefit in kind in terms of use of the small benefit exemption gift card initiative with a current limit of €500 in order that the benefit remains in the State; if he will consider limiting the use of the scheme to those gift card companies that prohibit international spend in the interests of supporting retail jobs and businesses across the State; and if he will make a statement on the matter. [33387/20]
Amharc ar fhreagraI propose to take Questions Nos. 435 and 437 together.
I am advised by Revenue that the Small Benefit Exemption allows an employer to provide one tax free “qualifying incentive” per year to an employee, provided a number of conditions are satisfied.
Where all of the below conditions are satisfied no tax liability will arise:
- The qualifying incentive must be in the form of a voucher or other tangible benefit;
- The voucher or benefit cannot be part of any salary sacrifice arrangement between the employee and employer;
- The voucher or benefit cannot exceed €500 in value;
- Only one voucher or benefit may be given in any one year; and
- Any voucher awarded can only be used to purchase goods or services and cannot be exchanged in part or in full for cash.
If the value of the benefit exceeds €500, then the entire amount is liable to income tax, PRSI and USC.
There is no legislative requirement that the vouchers must be spent on goods or services in the Republic of Ireland, nor does it specify what goods and services may or may not be purchased. However, as stated above the voucher cannot be redeemed in full or in part for cash. Vouchers, which are fully or partially redeemable for cash, are considered perquisites, and therefore liable to tax in the usual way (i.e. subject to tax through the payroll when given to the employee).
Notwithstanding the above, the requirement that only one voucher issues per year is concessionally waived for the 2020 tax year, in circumstances where an employer wishes to recognise efforts of front-line or other key staff working during the COVID-19 crisis. Further guidance on this concession can be found on Revenue’s website, available here .
I have no plans to change the Small Benefit Exemption at present.
436. Deputy Seán Canney asked the Minister for Finance if he has received an update from a bank (details supplied) following his meeting; if the group will commit to the future of a bank in Ireland for the customers, staff and competition; and if he will make a statement on the matter. [33374/20]
Amharc ar fhreagraOn Wednesday 21 October, I met with representatives of Ulster Bank. I outlined that I expected that staff, customers and other stakeholders would be informed promptly about any decisions being made. In particular, I asked that staff representatives be consulted and kept informed of developments. I also emphasised the importance of Ulster Bank to the Irish financial services market, to the wider economy and to the communities it serves.
Ulster Bank confirmed that the strategic review is ongoing and that no decision has yet been taken. Ulster Bank also confirmed that there is no set timetable for this review and that it is fully aware of the strategically important role that Ulster Bank plays in the provision of financial services to the Irish market.
While I will have further engagement with the bank as the review process continues, I would like to emphasise that I have no role in the review or any commercial decisions arising from it. The commercial decisions of Ulster Bank are a matter for the Board and Management of the Bank and its parent company, NatWest.
438. Deputy Seán Canney asked the Minister for Finance if he will consider extending the date for filing returns for tax and CRO to the end of February 2021 in view of the current lockdown; and if he will make a statement on the matter. [33388/20]
Amharc ar fhreagraIt is assumed that the Deputy is referring to the date for filing 2019 self-employed income tax returns (Form 11).
The statutory date for filing the 2019 Form 11 return, paying any outstanding balance for that year and paying preliminary tax for 2020 is 31 October 2020. This date was initially extended by Revenue to 12 November 2020 for taxpayers who both file and pay using the Revenue Online Service (ROS). Revenue further extended the filing date to 10 December 2020 to assist taxpayers and tax agents experiencing difficulties arising from COVID-19 related restrictions. Once taxpayers and tax agents file and pay by this extended date, no surcharges will apply.
While it is not possible to extend the date beyond 10 December 2020, Revenue has assured me that it will adopt a pragmatic approach in circumstances where a taxpayer or tax agent is unable to make the deadline. Where such difficulties arise, it is important that the taxpayer or tax agent contacts Revenue as early as possible so that alternative arrangements can be agreed.
The filing of Company Registration Office (CRO) returns is a matter for the Department of Business, Enterprise and Innovation.
439. Deputy Róisín Shortall asked the Minister for Finance the recent discussions between him, his officials and banks regarding the fact that mortgage applicants who are in receipt of the employment wage subsidy scheme are having their mortgage applications turned down; and if he will make a statement on the matter. [33403/20]
Amharc ar fhreagraI have met with the CEOs of the banks on a number of occasions since the pandemic arose to discuss the measures banks and other regulated lenders can put in place to assist their borrowers who are economically impacted by COVID-19 and also the need to continue to support overall credit and lending in the economy, including new residential mortgage lending.
The purpose of the Employment Wage Subsidy Scheme (EWSS) is to support employers by helping them to continue trade as they deal with risk arising from COVID-19, and this puts employers in a position to retain key staff and ensure the viability of businesses and firms.
In respect of the approach of regulated mortgage lenders on new mortgage lending, the Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic. Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. If mortgage applicants have any queries or concerns about the impact of COVID-19 on their mortgage application, they should in the first instance contact their lender directly on the matter.
However, within the parameters of the regulatory framework, as set out below, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity. Also a loan offer may contain a condition that the lender can withdraw or vary the offer if in the lender’s opinion there is any material change in circumstances prior to drawdown. In such cases, the decision to withdraw or vary the offer is also a commercial decision for the lender.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.
In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation.
Where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.
If a mortgage applicant is not satisfied with how a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the Financial Services and Pensions Ombudsman.
440. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if the objective of the carbon tax is to change consumer behaviour in favour of the environment; and the reason carbon tax is the same on smokeless coal as opposed to smoky coal that is still in use in a large geographical area of the State. [33417/20]
Amharc ar fhreagraIn 2009, the Commission for Taxation recommended the introduction of a tax on carbon emissions from fossil fuels released for consumption in Ireland in order to broaden the tax base and to protect and enhance the environment. Carbon Tax, as part of an overall suite of measures to incentivise decarbonisation, aims to encourage businesses and householders alike to use greener alternative fuels where possible.
With regard to the application of Solid Fuel Carbon Tax on coal and smokeless coal ; ‘coal’ is defined in section 77 of the Finance Act 2010 as any fuel in solid form manufactured from coal falling within the EU customs classification Combined Nomenclature (CN code) 2701 or from lignite falling within the CN code 2702 or any energy product within the meaning of Article 2.1 of the Energy Tax Directive (2003/96/EC) in solid form. Solid Fuel Carbon Tax legislation does not set out separate definitions and rates for ‘smokeless coal’ and ‘regular coal’.
I understand that distinctions between regular and smokeless coal are made in the regulatory regime for environmental standards of solid fuel that is overseen by the Department of Communications, Climate Action and Environment which is enforced by local authorities in areas that are designated for use of certain types of solid fuel under air pollution legislation. This is a separate legal and regulatory regime and is not linked to the rates of Solid Fuel Carbon Tax, which is based on the amount of CO2 emitted by a given solid fuel product.
441. Deputy Ged Nash asked the Minister for Finance his views on the recent reported comments (details supplied) by the ECB head of banking supervision regarding the payment breaks; his further views the need to return to the payment break arrangement prior to 1 October 2020 in view of the recent level 5 lockdown; his plans to meet the Central Bank and pillar banks to discuss this issue; and if he will make a statement on the matter. [33629/20]
Amharc ar fhreagraI note the comments made in the European Parliament recently by the Chair of the Supervisory Board of the European Central Bank.
I will continue to engage with the retail banks in light of any further guidance issued by the EU regulatory authorities to ensure that Irish borrowers can benefit from any further initiatives at an EU level.
In April the European Banking Authority (EBA) published guidelines which provided regulatory flexibility to banks who offered borrowers a temporary payment break due to COVID-19. These guidelines were originally applicable until 30 June 2020 and their application was subsequently extended to 30 September 2020. On the 21 September 2020 the EBA announced that there would not be a further extension to the guidelines. The EBA has made no further official announcements in relation to the extension or reintroduction of guidelines on payment breaks.
It is important to note that there is no regulatory impediment to lenders offering further payment breaks to borrowers. Lenders must however ensure that such a solution is appropriate for the individual borrower's circumstance.
Lenders are expected to work with borrowers who are still experiencing repayment difficulty at the end of a COVID-19 payment break in a pro-active and sympathetic manner and with the objective of assisting borrowers to meet their mortgage commitments. It is important to note that in line with the Code of Conduct on Mortgage Arrears (CCMA), lenders can offer borrowers a variety of options depending on a number of factors specific to their own circumstances.
The Central Bank recently stated that by early October, there were under 54,000 active payment breaks associated with Irish borrowers. It noted that 40% of active payment breaks for Irish borrowers relate to mortgages, which represents 3.4% of outstanding Irish mortgages.
I have had several meetings with the CEOs of our retail banks and with Banking and Payments Federation Ireland (BPFI). I met with them on 18 March, 11 May and more recently on 28 September, to discuss the issue of payment breaks. At my most recent meeting, the discussion focused on the options available to borrowers once payment breaks expire and at this meeting the banks committed to sympathetically engaging with borrowers who require on going assistance on a case by case basis.
442. Deputy Ged Nash asked the Minister for Finance when he last spoke to the Minister for Social Protection with regard to the functioning of the EWSS; if he has spoken to the Minister with regard to the recent Central Bank economic letter (details supplied) which cites the need allow wage-subsidy-supported workers who face a material risk of job loss in the future to engage with active labour market programmes, including retraining and help with job search; his plans to include a training element to the EWSS; and if he will make a statement on the matter. [33631/20]
Amharc ar fhreagraI would like to assure the Deputy that I continue to closely monitor the uptake and utilisation of the Employment Wage Subsidy Scheme (EWSS) and that both I and my officials are in frequent contact with our counterparts the Departments of Social Protection and Public Expenditure and Reform on this important economy-wide employment measure.
I am aware of the views expressed in the letter, which I note do not claim to represent the views of the Central Bank, which are broadly supportive of the EWSS.
On the specific issue raised by the Deputy around the question of EWSS employees needing to engage with labour market activation schemes, I would highlight that the express objective of the EWSS is to support viable employment and to maintain the link between the employee and employer insofar as is possible. Employees who are in the EWSS are therefore in employment and engaged with the labour market and consequently the inclusion of a training element is not warranted at this time.
443. Deputy Duncan Smith asked the Minister for Finance the details of the financial transactions associated with land registered which was sold by NAMA to a company (details supplied); the price paid to NAMA for this site; and if he will make a statement on the matter. [33660/20]
Amharc ar fhreagraI am advised by NAMA that they do not typically own or sell properties. Rather NAMA’s role is as secured lender and the properties securing NAMA’s loans remain under the control of their registered owners, or in the case of enforcement, the appointed receiver. The Deputy will be aware that I, as Minister for Finance, have no role in respect of NAMA's commercial operations or transactions. Furthermore, by virtue of sections 99 and 202 of the NAMA Act, NAMA is legally precluded from disclosing confidential information regarding debtors or their properties.
In the case of the property referenced, I am advised that NAMA’s involvement was as charge-holder only. The property was not sold while it was secured to NAMA and NAMA’s involvement with the property ended in 2015 when the associated loans and security transferred as part of a wider loan sale, Project Arrow. NAMA therefore does not have any knowledge as to any subsequent sale of this property.
The Deputy is advised that NAMA has a dedicated email address for general queries and representations from Oireachtas members: oir@nama.ie. This email is monitored regularly, and queries are responded to promptly, while observing the statutory principle of debtor confidentiality that is set out in the NAMA Act.
444. Deputy Brendan Griffin asked the Minister for Finance if he will address the case of persons (details supplied); and if he will make a statement on the matter. [33665/20]
Amharc ar fhreagraI have met with the CEOs of the banks on a number of occasions since the pandemic arose to discuss the measures banks and other regulated lenders can put in place to assist their borrowers who are economically impacted by COVID-19 and also the need to continue to support overall credit and lending in the economy, including new residential mortgage lending. The three main retail banks assured the Tánaiste, Leo Varadkar T.D., Minister McGrath and me at meetings in July that they were considering applications and mortgage drawdowns from customers on the Temporary Wage Subsidy Scheme (TWSS) on a case by case basis and that they are taking a fair and balanced approach.
The purpose of the Employment Wage Subsidy Scheme (EWSS), which replaced the TWSS, is to support employers by helping them to continue trade as they deal with risk arising from COVID-19, and this puts employers in a position to retain key staff and ensure the viability of businesses and firms.
In respect of the approach of regulated mortgage lenders on new mortgage lending, the Central Bank has advised that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic. Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. If mortgage applicants have any queries or concerns about the impact of COVID-19 on their mortgage application, they should in the first instance contact their lender directly on the matter.
However, within the parameters of the regulatory framework, as set out below, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity. Also a loan offer may contain a condition that the lender can withdraw or vary the offer if in the lender’s opinion there is any material change in circumstances prior to drawdown. In such cases, the decision to withdraw or vary the offer is also a commercial decision for the lender.
The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness with a view to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR further provide that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.
In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower. The Code specifies that the affordability assessment must include consideration of the information gathered on the borrower’s personal circumstances and financial situation.
Where a lender refuses a mortgage application, the CMCAR requires that the lender must inform the consumer without delay of the refusal. In addition, the Code requires that the lender must clearly outline to the consumer the reasons why the credit was not approved, and provide these reasons on paper if requested.
If a mortgage applicant is not satisfied with how a regulated firm is dealing with them, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If they are still not satisfied with the response from the regulated firm, they can refer the complaint to the Financial Services and Pensions Ombudsman.
450. Deputy Mary Lou McDonald asked the Minister for Finance the number of data protection breaches identified within his Department in 2019. [33844/20]
Amharc ar fhreagraThere were 8 data protection breaches identified in the Department of Finance in 2019.
The Department has an internal personal data breach reporting protocol. All breaches must be formally notified to the Department’s Data Protection Officer for assessment. One of the breaches that occurred in 2019 was notified to the Office of the Data Protection Commission. Immediate follow-up action was taken by the Department in respect of all of breaches which were fully resolved. Those reported to the DPC were also case closed as a result of action taken in the Department.
