Written Answers Nos. 496-515
497. Deputy Carol Nolan asked the Minister for Finance the amount of gold reserves held in Ireland from quarter one 2011 and quarter one 2022, in tabular form; and if he will make a statement on the matter. [20053/22]
Amharc ar fhreagraThe official numbers available on the level of gold reserves held in Ireland relate to the amount of gold reserves held by the Central Bank of Ireland. These are as follows;
|
Quarter |
Q1 2011 |
Q1 2012 |
Q1 2013 |
Q1 2014 |
Q1 2015 |
Q1 2016 |
Q1 2017 |
Q1 2018 |
Q1 2019 |
Q1 2020 |
Q1 2021 |
Q1 2022 |
|
Amount (metric tonnes) |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
6 |
12 |
The Central Bank increased its holdings of physical gold during 2021 and early 2022 as part of the diversified longer-term investment strategy for the discretionary investment assets, aimed at improving balance sheet resilience. Stocks of gold are primarily in the form of gold bars but also include a small amount of gold coin.
The full range of investment assets held by the Bank is published in its annual report. The Annual Reports are available on the Central Bank website here: www.centralbank.ie/publication/corporate-reports/annual-reports
498. Deputy Carol Nolan asked the Minister for Finance the annual cost of servicing the national debt since 2011 to date in tabular form; and if he will make a statement on the matter. [20054/22]
Amharc ar fhreagraThe NTMA have informed me that the table below shows the national debt service cost for each year from 2011 to 2021. The figure for 2021 is a provisional outturn as per the end-December 2021 Exchequer Statement. National debt service is a combination of interest together with fees and operating expenses. The years 2011 – 2014 in the table below also include a Sinking Fund payment.
|
€m |
National Debt Service |
|
2021 |
3,745 |
|
2020 |
4,676 |
|
2019 |
5,220 |
|
2018 |
5,967 |
|
2017 |
6,227 |
|
2016 |
6,845 |
|
2015 |
7,107 |
|
2014 |
8,212 |
|
2013 |
8,083 |
|
2012 |
6,468 |
|
2011 |
5,375 |
The NTMA have also informed me that most recently, for Q1 2022, National debt service costs totalled €2,017m, marginally below the same period in 2021.
499. Deputy Carol Nolan asked the Minister for Finance the number of persons currently employed in his Department who have been seconded in from the public sector; the number of Departmental officials seconded where the monies are recouped from the body the person is seconded to or where the Department pays for the person with no recoupment from the other organisation; and if he will make a statement on the matter. [20061/22]
Amharc ar fhreagraI wish to advise the Deputy that secondment arrangements within the Department of Finance follow the guidelines set out by the Department of Public Expenditure and Reform's Secondment Policy for the Civil Service.
This was outlined most recently in Circular 27-2021 which sets out the current arrangements for secondments between Civil Service organisations. This Secondment Policy also provides that the same principles may be applied to secondment arrangements between a parent department and a non-civil service body within its sector.
There are currently 32 people seconded into my Department from other public sector organisations.
There are currently 6 employees of the Department of Finance seconded to other organisations who continue to be paid by my Department. These employees have remained on the payroll of this Department as the roles they occupy remain directly in the purview and strategic interest of the Department of Finance. Their secondment enables them to work closely within these organisations and also allows for administrative ease (i.e. access to email/internet networks etc). Of these 6 employees, 2 are placed with the European Commission and their salaries are recouped from the Department of Foreign Affairs under the Central Funding Scheme, which supports the placement of Irish staff in international organisations.
500. Deputy Joe Carey asked the Minister for Finance the financial changes that are being proposed to mitigate the cost of road diesel for operators who run businesses that have heavy goods vehicles and other associated vehicles but do not have a haulage licence as they operate outside of the sector; and if he will make a statement on the matter. [20072/22]
Amharc ar fhreagraIreland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in Finance Act 1999 (as amended) and this Act provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils, such as petrol, diesel, and kerosene, that are used as motor or heating fuels.
The Diesel Rebate Scheme (DRS) was introduced in 2013 with the aim of providing support to road haulage and bus transport operators when the retail price of diesel is relatively high. The DRS operates on a sliding scale basis, whereby a partial rebate of MOT is available when the retail price of diesel exceeds €1.00 per litre excluding VAT. The repayment rate increases gradually as the retail price increases, up to a maximum repayment rate of 7.5 cents per litre.
The DRS operates as a State Aid under Commission Regulation (EU) No 651/2014, commonly referred to as the General Block Exemption Regulation. The DRS allows qualifying operators to benefit from an effective lower rate of MOT than other diesel users. While this application of a differentiated MOT rate on diesel for certain commercial uses is allowed under Articles 7.2 and 7.3 of the ETD, the ETD minimum rate, currently €330 per 1,000 litres, must still be complied with. This means that the effective MOT rate is what is considered in terms of compliance with ETD minimum. The effective MOT rate is determined by reducing the actual MOT rate by the maximum DRS repayment rate.
I am advised by Revenue that a repayment under the DRS may only be made to licensed road haulage and bus transport operators who purchase diesel in the State for use in qualifying motor vehicles. Operators established in the State must hold either an international operator’s licence or a national operator’s licence issued under the Road Traffic and Transport Act 2006. In addition operators must provide proof of tax compliance; either a valid Tax Clearance Certificate issued by Revenue or written proof of tax compliance in the form of a letter from the tax authority of another Member State where the operator’s road licence was issued.
The Deputy will be aware that in March this year, in response to the current fuel crisis, I introduced a significant reduction of 15 cents inclusive of VAT on MOT for diesel. I will shortly bring forward legislation to extend this rate cut until 11 October. A further reduction of 1 cent per litre inclusive of VAT was applied from 1 April and this will also run until 11 October.
This means that the current rate of MOT, €405.38 per 1,000 litres, is €75.38 over the ETD minimum rate of €330 per 1,000 litres. However, when the DRS is taken into account the effective MOT rate is only €0.38 per 1,000 litres above the ETD minimum. It is for this reason that I have no scope under EU law to make any further material cuts to the MOT rate on diesel. Recent MOT rate changes are summarised in the table below, along with comparisons between actual and effective MOT rates and the ETD minimum rate.
The Government has also provided an €18m package of emergency support measures for licenced hauliers to address cost pressures arising from current high fuel prices. This targeted and temporary grant scheme will provide a payment of €100 per week for every heavy goods vehicle (over 3.5 tonnes) as listed on a road haulage operator’s licence. The scheme will operate for a period of 8 weeks and will be reviewed thereafter.
501. Deputy Niamh Smyth asked the Minister for Finance if he will address a matter regarding the case of a person (details supplied); and if he will make a statement on the matter. [20096/22]
Amharc ar fhreagra505. Deputy Cian O'Callaghan asked the Minister for Finance if he will take action to ensure that a bank (details supplied) continues providing its graduate entry medicine student loan; and if he will make a statement on the matter. [20201/22]
Amharc ar fhreagra520. Deputy Neale Richmond asked the Minister for Finance if his attention has been drawn to the fact that a bank (details supplied) has decided to cancel its loans for graduate entry medicine students; if his attention has been further drawn to the fact that this was the only source of funding for many students; if he has engaged with the bank on this issue; and if he will make a statement on the matter. [20613/22]
Amharc ar fhreagraI propose to take Questions Nos. 501, 505 and 520 together.
I wish to highlight, as Minister for Finance, I am precluded from intervening in commercial and operational decisions in any particular bank, even one in which the State has a shareholding. Decisions in this regard, including decisions around a bank's loan offering, are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The bank's independence is protected by a Relationship Framework which is a legally binding document that cannot be changed unilaterally. This framework, which is publicly available, was insisted upon by the European Commission to protect competition in the Irish market.
Notwithstanding the above, Department of Finance officials contacted Bank of Ireland in relation to this matter and they have advised that demand for their Graduate Entry Medical (GEM) Loan has been declining, with only approximately 50 of these loans taken out in 2021. In contrast, they have seen their other loan offerings becoming more popular. They have therefore taken the decision to discontinue the GEM Loan from 31 July 2022, and have communicated this decision through their university branches.
Bank of Ireland have advised that they will continue to support students in financing their education through a range of other loans which are available for undergraduates and postgraduates. Information on these loans is available at personalbanking.bankofireland.com/borrow/loans/
Finally, Bank of Ireland have confirmed that there is no change to the terms and conditions for the operation of any existing GEM Loan.
502. Deputy Maurice Quinlivan asked the Minister for Finance the position regarding the case of a person (details supplied) who has tried to appeal, since 2020, the decision to reject their application for a primary medical certificate but has been unable to do so as the National Rehabilitation Hospital have advised that the board has yet to be reconvened; and if he will make a statement on the matter. [20190/22]
Amharc ar fhreagraThe Disabled Drivers & Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the six medical criteria.
I have no role in relation to the granting or refusal of PMCs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
A new Disabled Drivers Medical Board of Appeal is being established following the resignation of all 5 members of the previous board. An Expression of Interest seeking suitable candidates for the Disabled Drivers Medical Board of Appeal is now published on gov.ie with a closing date of 29th April 2022.
Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place. Assessments for the primary medical certificate, by the HSE, are continuing to take place.
504. Deputy Pearse Doherty asked the Minister for Finance if there was modelling carried before and since increases in the carbon tax in 2020 on the projected price trajectory without increases to the carbon tax in each of the years to 2030 by his Department or in collaboration with another Department given the stated objective of the carbon tax was to place a price floor on carbon-based fuels and consumption; and if he will make a statement on the matter. [20199/22]
Amharc ar fhreagraMy Department has, in recent years, worked with the Economic and Social Research Institute (ESRI), through a Joint Research Programme (JRP) to advance Ireland’s macroeconomic and fiscal analysis of climate change using the ESRI’s I3E model.
Through the JRP, significant analysis has been undertaken regarding the economic and environmental impacts of the carbon tax, in addition to other climate-focused Government measures. The analysis conducted using the I3E model examines the effects of policy changes on a number of variables, against a ‘Business as Usual' (BaU) scenario, where no such policy changes are introduced. As regards the price of carbon, it is important to bear in mind that the estimates within the model’s projections are a function of the underlying assumptions for international energy prices, as well as the impact of any policy changes. The relevant papers examining the potential impact of increases in the carbon tax are available on the JRP website: www.esri.ie/current-research/joint-research-programme-on-the-macroeconomy-taxation-and-banking.
The most recent analysis using the I3E model is a working paper entitled the ‘Impacts of Electric Vehicles (EVs) and Retrofitting on the Irish economy’ published by the ESRI in December 2021. In addition to modelling Government commitments in regard to uptake of electric vehicles and heat pumps, this working paper analysed the economic and environmental impacts of the Government’s commitment to raise the carbon tax to €100 per tonne by 2030 through graduated annual increases. The paper is available at
www.esri.ie/publications/the-impacts-of-electric-vehicles-uptake-and-heat-pump-installation-on-the-irish.
Some of the findings of the most recent working paper were that, at the macroeconomic level, the effects of the carbon tax on activity would mean that GDP would be around 1.36 per cent lower by 2030, compared to the BaU scenario for 2030. However, with heat pump and electric vehicle adoption, this reduction is significantly abated to just a 0.2 per cent decline compared to the BaU scenario.
Overall, the work published by the ESRI finds that the combined policies contribute to a fall in economy-wide emissions of 21.6 per cent, when compared to the BaU scenario. Specifically, the carbon tax is responsible for a 15.9 per cent reduction in emissions, or 8.3 million tonnes of CO2, when compared to the BaU scenario.
In addition to the analysis undertaken by the ESRI, through the JRP, my Department has currently published updated estimates of the impact of inflation on energy prices over the medium term as part of the recently published Stability Programme Update 2022.
507. Deputy Neasa Hourigan asked the Minister for Finance the circumstances in which NAMA agreed to write of £100 million debt owed by a company (details supplied); the reason NAMA was unable to recoup any funds from the sale by the company of the 146 apartments it was set up to develop; and if he will make a statement on the matter. [20233/22]
Amharc ar fhreagraBy virtue of Sections 99 and 202 of the NAMA Act, NAMA is legally precluded from disclosing confidential debtor information, including specific details relating to secured assets or confidential arrangements reached with debtors.
While NAMA is legally constrained from providing detailed responses to the issues set out in the Deputy’s query, NAMA advises that assertions contained in the query are misrepresentative of the factual situation. NAMA has at all times operated within the statutory obligations set out in the NAMA Act, primarily to obtain the best achievable financial return from its acquired assets and to protect or otherwise enhance the value of those assets.
Noting its obligations regarding debtor confidentiality, NAMA can respond only in general terms to the Deputy’s query regarding the criteria used for managing a debtor’s debt. Any debt management by NAMA is a carefully considered process and is generally undertaken only when all secured assets have been sold with proceeds remitted towards debt repayment and all potential further avenues for recourse to the debtor have been exhausted. Otherwise, holding residual debt indefinitely, with no remaining assets to realise, incurs an annual administrative cost to NAMA and ultimately the taxpayer. The Deputy will note that the write-off of outstanding debt does not typically represent a loss to NAMA. This is because potential losses were crystallised to the participating institutions when NAMA acquired the loans.
508. Deputy Mick Barry asked the Minister for Finance his plans to reopen Revenue Commissioners offices to the public; and if he will make a statement on the matter. [20313/22]
Amharc ar fhreagraI am advised by Revenue that all Revenue public offices, excluding ports, airports and trade facilitations stations remain closed to the public until further notice.
Revenue continues to provide a full range of online services for taxpayers to manage their tax affairs, which for the most part removes any requirement to access public offices. These services, which include an online communications channel through the MyEnquiries system, are available 24/7, are easy to use and are fully secure.
For customers that are not comfortable with its online service, Revenue provides an extensive telephone service, in addition to a full service for queries being received through the postal system. The full list of telephone services and their opening hours are available on the Revenue website.
Regarding situations where complex tax issues exist that require direct engagement, Revenue provides a one to one virtual appointment service with the relevant official. These engagements are carried out remotely by video conferencing. Such an appointment can be arranged by contacting 01 738 3660. The appointment phoneline opening hours are 09.30 to 13.30 (Monday to Friday).
Revenue has confirmed that it will expand the virtual appointments service to include face to face appointments as part of its post-pandemic blended working arrangements. It is anticipated that this service will be available in the coming weeks as the blended working arrangements are bedded in.
509. Deputy Neasa Hourigan asked the Minister for Finance if his Department has examined alternative insurance systems, particularly in relation to licensed premises, such as the no-fault system that exists in New Zealand; and if he will make a statement on the matter. [20320/22]
Amharc ar fhreagraIn relation to the proposed ‘no-fault’ insurance systems in other jurisdictions, where the State pays compensation and/or the cost of rehabilitation while the public pays for this system through taxes, the Deputy should note that this has previously been examined by the Cost of Insurance Working Group. This concluded that the introduction of such a model into the State would have impacts not only on insurance premiums, but also potentially on taxation and social security, as well as having constitutional, national and European ramifications, such as on EU insurance directives. It is therefore difficult to envisage a no-fault system as it exists in New Zealand being applied in Ireland in view of our current legal and constitutional framework. The Deputy should also note that introducing a no-fault model could have fundamental cost implications in terms of raising revenue in the form of direct and indirect taxation.
Finally, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government. The Action Plan for Insurance Reform remains the key policy platform to deliver these changes. I can assure the Deputy that I will continue to work with my colleagues to achieve this important goal.
510. Deputy Matt Carthy asked the Minister for Finance if his attention has been drawn to the difficulties encountered by private companies securing insurance cover for company owned electronic vehicles; if he proposes any measures to address this issue; and if he will make a statement on the matter. [20368/22]
Amharc ar fhreagraAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles, nor can I direct insurance companies to provide cover to specific individuals or businesses.
In order to be as helpful as possible, my officials contacted Insurance Ireland in relation to the Deputy’s query. Insurance Ireland indicated it is not aware of any specific difficulties for private companies securing insurance cover for company owned electronic vehicles, nor has is received any queries through its Insurance Information Service in relation to this matter.
Broadly, Insurance Ireland advised that its members do offer cover for these types of vehicles, whether company or individually owned and that in general the same standard acceptance criteria applies for electric vehicles as for fuel vehicles. However, Insurance Ireland noted that there can be differences between insurers, for example, whether such cover is only available through fleet insurance. I understand that this would be the same for all company cars, whether electrically or conventionally powered.
Insurance Ireland highlights that different insurers can have different approaches to how this cover is offered for company owned vehicles and recommends that businesses should seek to get more than one quote. The Competition and Consumer Protection Commission (CCPC), on its website, also recommends that consumers get quotes from a number of insurance companies, including their current one. I believe that this advice applies to businesses as well as individuals.
Separately, work is continuing across Government to complete the Action Plan for Insurance Reform in order to improve the affordability and availability of cover for all groups, including motorists. Achievements to date include the creation of an Office to Promote Competition in the Insurance Market. The aims of the Office include working to further competition in the Irish market in order to increase the availability of cover, both by encouraging existing insurers to expand their risk appetite, and exploring opportunities for new entrants.
Finally, it may interest the Deputy to know that the free Insurance Information Service operated by Insurance Ireland is for those who have queries, complaints or difficulties in relation to obtaining insurance, and can be accessed at: feedback@insuranceireland.eu. In addition, Brokers Ireland can be contacted at insurancequeries@brokersireland.ie.
511. Deputy Thomas Gould asked the Minister for Finance the status of the vacancy data collected by his Department through the local property tax. [20382/22]
Amharc ar fhreagraThe Government’s strategy ‘Housing For All’ includes an action for my Department to collect data on vacancy with a view to introducing a Vacant Property Tax. The timeframe for delivery on this commitment is the second quarter of 2022. The Finance (Local Property Tax) (Amendment) Act 2021 enabled Revenue to collect certain information in relation to the occupancy status of residential properties including, where unoccupied, the duration and reason for this, in the Local Property Tax (LPT) return forms submitted by residential property owners in respect of the new LPT valuation period 2022-2025. This information, together with information from other available sources, will be used to assess the merits and impact of introducing a Vacant Property Tax.
Revenue have completed a preliminary analysis of the LPT returns received to date which has been shared with my Department. The results of the preliminary analysis suggest that levels of vacancy are low across all counties. I anticipate that further detail in relation to this analysis will be available in the coming weeks. I understand Revenue intends to publish a profile of the occupancy data from the LPT returns in due course.
512. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to proposals raised in correspondence (details supplied) in regard to taxation and the fair deal scheme; and if he will make a statement on the matter. [20386/22]
Amharc ar fhreagraThe position is that Section 469 of the Taxes Consolidation Act 1997 (TCA 1997) provides for income tax relief where an individual proves that he or she has incurred costs in respect of qualifying health expenses.
It should be noted that only expenses incurred in the provision of ‘health care’ will qualify for tax relief. Health care is defined as the “prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability”. Expenses incurred in relation to the maintenance or treatment of an individual in a nursing home will qualify for income tax relief. This is subject to the requirement that the nursing home is one which provides 24-hour on-site care.
Income tax relief available under section 469 TCA 1997 is due to the individual(s) who incur the relevant expense and is granted by way of a deduction, equal to the expense defrayed, from the individual’s total income. The amount of income on which that individual is subject to income tax is therefore reduced and the relief is provided at his or her ‘marginal rate’ of tax, being either 40% or 20%.
Where an individual receives financial support under the Fair Deal Scheme, such amounts are not eligible for relief. Financial support includes both the payment made by the Health Service Executive (HSE) following an application for support to assist a person in meeting the cost of care services, and money advanced by the HSE by way of loan. Any excess contributions made by the individual towards nursing home fees will however qualify for income tax relief in the usual manner.
Further details in relation to income tax relief for nursing home fees are set out on the Revenue website and in Tax and Duty Manual Part 15-01-12, both of which may be found at the links below:
- Revenue website: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/index.aspx
- Tax and Duty Manual: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.
Tax relief under section 469 TCA 1997 applies in respect of income tax only. Therefore, it does not extend to Universal Social Charge, Local Property Tax (LPT) or any other taxes.
The proposals raised in the details supplied by the Deputy to create a fund from which fair deal expenses up to the taxpayers marginal rate of tax might be reimbursed in circumstances where income tax relief cannot be fully absorbed, would amount to a form of a refundable tax credit. Such proposals would raise broader policy and cost issues in respect of the income tax system which are significantly beyond the question of tax relief for health expenses.
Overall, I am satisfied that income tax relief in respect of health expenses it in its current form is appropriately calibrated and there are no immediate plans to review or amend the relief.
However, in relation to LPT it is worth pointing out that properties vacated by their owners due to illness can be exempt from the charge. This exemption applies to a property which was occupied by a person as his or her sole or main residence and has been vacated by the person for 12 months or more due to long term mental or physical infirmity. An exemption may be available in situations where the property has been empty for less than 12 months, if a doctor is satisfied that the person is unlikely to return to the property. In both cases the LPT legislation currently stipulates that the exemption applies only where the property is not occupied by another person. However, the recently enacted Finance (Local Property Tax) (Amendment) Act 2021, modifies the above exemption so that from 2022 another person can occupy the property without the exemption being lost.
513. Deputy Michael Ring asked the Minister for Finance if funding (details supplied) that has been allocated has been drawn down and spent; if there has been a follow up or appraisal on the funding given under the various programmes or headings; if any of the allocated funding has been recouped or unspent; and if he will make a statement on the matter. [20395/22]
Amharc ar fhreagraI wish to advise the Deputy that my Department does not provide any funding to the organisation in question.
514. Deputy Jackie Cahill asked the Minister for Finance if a vehicle which was bought for commercial purposes in 2020 and was never deregistered due to Covid-19 could now be deregistered and reregistered as a 2022 vehicle; and if he will make a statement on the matter. [20420/22]
Amharc ar fhreagraI understand from Revenue that the application process for the de-registration of a vehicle and repayment of the associated Vehicle Registration Tax (VRT) continued to operate normally throughout the Covid-19 pandemic.
As explained on the Revenue website, if there are exceptional circumstances, then a vehicle may be de-registered and the VRT repaid provided that the following conditions are met:
- the circumstances arise within seven working days of the registration;
- the vehicle has not been licensed for use in a public place (i.e. road tax has not been paid); and
- an application for de-registration is made to Revenue within 21 days of the date of registration.
These statutory conditions help to maintain the integrity of the vehicle registration and VRT system, which gives assurance to purchasers that an unregistered vehicle is new.
In the particular case to which the Deputy refers, I recommend that the taxpayer should contact the National Vehicle Registration Tax Service (NVRTS) in Revenue to explain the details of their situation, which will allow Revenue to consider the case. The taxpayer can do this by using the MyEnquiries facility on the Revenue website.
515. Deputy Jackie Cahill asked the Minister for Finance his views on whether it is fair that a married couple who are separating and are restructuring their joint loans can have their individual credit ratings downgraded as a result of this considering they are not in arrears and that they are essentially just taking out new loans; and if he will make a statement on the matter. [20437/22]
Amharc ar fhreagraThe Central Credit Register (CCR) was established by the Central Bank of Ireland under the Credit Reporting Act 2013 (the Act). The purpose of the CCR is to ensure that credit providers will have access to the most accurate and up to-date information regarding a borrower’s total debt exposure when considering an application for credit or when an existing loan is being restructured. Under the Act lenders are obliged to submit specified personal and credit information in respect of qualifying credit applications and agreements to the CCR. In the case of credit agreements this includes factual information such as, where applicable, details of payment performance, credit status, restructure events etc.
The CCR assists lenders in their lending and credit management operations. For example, it supports lenders when they carry out their creditworthiness assessments and provides factual information about the indebtedness profile of a borrower and their repayment performance on their individual loans. However, the CCR does not produce credit scores or ratings and neither does it provide guidance or a recommendation to lenders on the decision they should make on an application for credit. The decision on an application for credit, or in relation to the restructure of an existing loan, is a commercial matter for the relevant lender. Neither I nor the Central Bank can become involved in the credit related decision making process of lenders.
Borrowers may access their credit report free of charge (subject to fair usage) from the CCR. If a person believes that the information on their credit report is inaccurate, incomplete or not up to-date, they have a right to have the information corrected. Also, if so desired, a borrower is entitled to provide an explanatory statement about information on his/her credit report which can explain an event or circumstances about a person's loan or loans. Further information about these matters can be obtained from the Central Credit Register website.
