Tuesday, 5 Jul 2022

Written Answers Nos. 171-190

Tax Reliefs

Ceisteanna (172)

Michael Healy-Rae

Ceist:

172. Deputy Michael Healy-Rae asked the Minister for Finance if the disabled passengers and drivers scheme will be reviewed (details supplied); and if he will make a statement on the matter. [35575/22]

Freagraí scríofa

Minister for Finance

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.

To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate (PMC). The PMC is issued by the relevant Senior Medical Officer in the HSE, or failing that an appeal may be made to the Disabled Drivers Medical Board of Appeal. 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.

To qualify for a PMC an applicant must be permanently and severely disabled, and satisfy at least one of six medical criteria.

I gave a commitment to the House that a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, would be undertaken.

In this context I have been working with my Government colleague, Roderic O’Gorman, Minister for Children, Equality, Disability, Integration and Youth. We are both agreed that the review should be brought within a wider review under the auspices of the National Disability Inclusion Strategy, to examine transport supports encompassing all Government funded transport and mobility schemes for people with disabilities. 

We believe that this is the most appropriate forum to meet mutual objectives in respect of transport solutions/mobility supports for those with a disability.

The NDIS working group, chaired by Minister Anne Rabbitte, with officials from both my Department and the Department of Children, Equality, Disability, Integration and Youth as well as others, held its first meeting on the 26th January 2022. A stock-taking exercise of existing transport and mobility schemes currently supporting people with disabilities is ongoing ahead of the next meeting of the group. The issue was also discussed at the most recent meeting of the NDIS Steering Group on April 13th, which included input from stakeholders.

My officials will continue to work closely with officials from the Department of Children, Equality, Disability, Integration and Youth, to progress this review, and on foot of that will bring forward proposals for consideration.

I cannot comment on any potential changes to the scheme in advance of these proposals.

Customs and Excise

Ceisteanna (173)

Catherine Murphy

Ceist:

173. Deputy Catherine Murphy asked the Minister for Finance the number of customs officials inspections at Knock, Cork, Kerry, Dublin and Shannon airports in 2021 and to date in 2022; the value of items, substances and cash seized during this period; and the amount of cash returned on appeal for the same time period. [35781/22]

Freagraí scríofa

Minister for Finance

It was not possible for the Revenue Commissioners to respond to this information request in the time available and therefore I will make arrangements to provide a response in line with Standing Order 42A.

Vehicle Registration Tax

Ceisteanna (174)

Catherine Murphy

Ceist:

174. Deputy Catherine Murphy asked the Minister for Finance the estimated amount that would be generated if the late registration fee of 0.1% was increased to 0.6% for vehicles that remain unregistered for VRT, based on 2019 figures. [35782/22]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that under section 132 of the Finance Act, 1992, an additional charge applies where a vehicle is unregistered after the date registration is required by law, or where a payment or part payment remains outstanding after the same date. 

Under the law, the additional charge is calculated as 0.1% of the amount of VRT outstanding, multiplied by the total number of days that have passed between the date the vehicle enters the State and the date it is registered. This charge applies only where registration takes place after the required last date of registration set down in law, which is to say it applies only where the 30-day period for registration after a vehicle enters the State, where applicable, has expired. 

In 2019, Revenue collected €2,085,704 in relation to this charge. Had the rate been 0.6% per day as suggested by the Deputy (instead of the 0.1% rate set down by law), this figure for 2019 would have amounted to €12,514,224 (i.e. 6 times higher), assuming no behavioural change.

Revenue Commissioners

Ceisteanna (175)

Catherine Murphy

Ceist:

175. Deputy Catherine Murphy asked the Minister for Finance the estimated cost of providing seven additional dog detector teams for the Revenue Commissioners; the amount of cash seized by the Revenue Commissioners' dog unit in 2021 and to date in 2022; and the estimated street value of drugs and tobacco products seized during that time period. [35783/22]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that it currently operates 24 detector dog teams with arrangements in place to increase this to 26 by the end of July 2022.

The year one cost of each detector dog team is approximately €100,000. This includes the cost of a trained detector dog, salary of the handler, training for the handler with the dog, transport and kennelling arrangements.  Subsequent costs associated with each detector dog team is approximately €40,000 per annum. This includes salary, allowances, uniform, food, vet bills and other related costs .

Statistics in relation to detector dog teams are compiled on an annual basis. The table below sets out the seizures secured in 2021.

-	2021
Tobacco   Products	€23.1m
Drugs	€52m
Cash	€322,000

I am advised by Revenue that operational requirements as regards the deployment and use of detection equipment and technologies, including dog detectors teams, are kept under regular review having regard to ongoing risk assessment and developments as regards smuggling and criminal activities and developments.

Tax Code

Ceisteanna (176)

Eoin Ó Broin

Ceist:

176. Deputy Eoin Ó Broin asked the Minister for Finance the current rate of VAT on construction for Government-funded social and affordable housing schemes; and if there are any legal impediments to reducing or zero-rating VAT on such schemes. [35787/22]

Freagraí scríofa

Minister for Finance

The Deputy should note that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.

Under the EU VAT Directive the supply of construction services is liable to VAT at the standard rate generally across the EU. However, by way of special derogation from the general rule, Ireland is permitted to continue to apply a reduced rate, currently 13.5%, to the supply of all property both residential and commercial.   This is a ‘parked rate’, governed by Article 118 of the VAT Directive, and standstill provisions from 1991 mean that this reduced rate can be maintained but it cannot be reduced below 12%.

A reduced rate for housing (below the ‘parked rate’ of 13.5%  but no lower than 5%) is permitted under the Directive as part of social policy. Technically, it would be possible for Ireland to decide, on social policy grounds, to apply a reduced rate to the construction, repair and renovation of certain residential housing.  However, in accordance with the Directive, such a decision would not be permitted in relation to housing built for reasons other than social policy and non-residential construction.  Such a situation would involve having two separate VAT rates applying to construction services depending on the customer. This would be very difficult to administer and would have the high risk of accidental or fraudulent underpayments of VAT.

There is no provision in the Directive to permit the application of a zero rate of VAT to the supply of residential property.

Tax Code

Ceisteanna (177)

Eoin Ó Broin

Ceist:

177. Deputy Eoin Ó Broin asked the Minister for Finance the current rate of VAT on construction for refurbishment of vacant properties; and if there are any legal impediments to lowering this rate of VAT for refurbishment of vacant properties when such refurbishments meet other Government policy objectives, including those set out in the climate action plan's town centre first policy. [35788/22]

Freagraí scríofa

Minister for Finance

The Deputy should note  that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive.

Under the EU VAT Directive the supply of construction services is liable to VAT at the standard rate generally across the EU but Ireland applies a 13.5% reduced rate of VAT to all construction services under a derogation from the EU VAT Directive, subject to strict restrictions.

Construction services that consist of the “renovation and repairing of private dwellings, excluding material which account for a significant part of the value of the service supplied” can benefit from the reduced rate of VAT, currently 13.5%. This means that where a building contractor carries out home improvements and the material cost does not exceed two-thirds of the costs of the improvements then the reduced rate of 13.5% applies to the total construction service.

It is not possible for Ireland to apply the 9% reduced VAT rate solely to the refurbishment of vacant properties on a restricted basis.

Departmental Bodies

Ceisteanna (178)

Matt Carthy

Ceist:

178. Deputy Matt Carthy asked the Minister for Finance the bodies under his aegis in which persons will receive a pay rise from 1 July 2022; the role of each, where appropriate, or the anonymised salaries bands otherwise, the current remuneration and the proposed increase; and if he will make a statement on the matter. [35851/22]

Freagraí scríofa

Minister for Finance

The process of unwinding the Financial Emergency (FEMPI) legislation commenced under the Lansdowne Road Agreement 2016-2018, with the remainder of the process largely completed under the Public Service Stability Agreement 2018-2020 (PSSA), and ‘Building Momentum: A New Public Service Agreement, 2021-2022’.

 By 1 July, 2021, salary rates up to €150,000 had been fully restored.

 Section 20 of the Public Service Pay and Pensions Act, 2017, set out that restoration for public servants with annualised basic salaries above €150,000 would be completed by Ministerial order by 1 July, 2022. In accordance with the legislation, an Order under Section 20 of the Act was laid before the Oireachtas on 30 June, 2022.

 In respect of the bodies under the aegis of my Department, the following posts are encompassed by restoration under the Order. These are:

- Chairman, Office of the Revenue Commissioners (salary rate equivalent to Secretary General Level II)

- Commissioner, Office of the Revenue Commissioners (salary rate equivalent to Secretary General Level III)

 For information, please note that Circular 15/2022, which sets out the salary rates with effect from 1 July 2022 for General Service Grades in the Civil Service, is available on the Government website (www.gov.ie/en/circulars/).

Tax Credits

Ceisteanna (179)

Michael Lowry

Ceist:

179. Deputy Michael Lowry asked the Minister for Finance if he will consider establishing a scheme of tax credits in budget 2023 for owner-occupiers of defective apartments, duplexes and residential properties to offset remediation costs, similar to the way buy-to-let owners can offset liabilities against profit and loss; and if he will make a statement on the matter. [35891/22]

Freagraí scríofa

Minister for Finance

As the Deputy may be aware, the Minister for Housing, Local Government and Heritage has established an Independent Working Group to examine the issue of defective housing. Officials from my Department participate on this Working Group. 

The objectives of the group are to identify the scope of relevant significant defects in housing, to evaluate the scale of housing affected, to propose a means of prioritising defects, to evaluate the cost of remediation, to recommend appropriate mechanisms for resolving defects and, to consider financing options in line with the Programme for Government commitment to identify options for those impacted by defects to access low-cost, long-term finance.

Separately, my Department's Tax Expenditure Guidelines are clear that a tax-based intervention should only be considered where it would be more efficient than a direct expenditure measure. 

In the circumstances, any intervention by me along the lines mentioned by the Deputy would seem to be premature at this point.

EU Directives

Ceisteanna (180, 181)

Michael Lowry

Ceist:

180. Deputy Michael Lowry asked the Minister for Finance if he has reconsidered his support for the enactment of a proposed European Union directive implementing a minimum corporate tax rate, given the increased pressures on Irish and European Union competitiveness as a result of the Russian invasion of Ukraine. [35936/22]

Michael Lowry

Ceist:

181. Deputy Michael Lowry asked the Minister for Finance if he plans to implement the proposed global minimum tax rate as part of Finance Bill 2023. [35937/22]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 180 and 181 together.

It is first important to note that Russia’s war is illegal, immoral and unjustified. Ireland’s support for Ukraine’s sovereignty and territorial integrity is unwavering.

We have been working closely with our EU partners and fellow Member States in the adoption of sanctions in response to Russia’s violation of Ukraine’s territorial integrity.  Sanctions will not be cost-free for the EU and Ireland, but Russia’s behaviour leaves no alternative.

However, notwithstanding these challenges, Ireland remains supportive of the two-pillar solution for the taxation of the digital economy reached globally at the OECD, an agreement to which we signed up along with over 130 other countries in October 2021.  The decision to join the global agreement was not taken lightly, and I firmly believe this agreement brings a unique opportunity to reframe the international taxation architecture which has largely remained in place for almost a century.

My long-standing position is that the international tax system needs to adapt to keep pace with changes in how business is conducted internationally. This is a global issue which requires global action to solve in a coordinated way. The OECD agreement will ultimately bring long-term stability and certainty to the international tax framework based on a shared understanding of where value is created in digital business models.  This stability is essential for businesses to plan medium- and long-term investments, driving employment and economic growth.

Ireland has been very active in recent years in implementing international tax reforms. I published Ireland’s Corporation Tax Roadmap (2018 and 2021 update) to set out our commitments made and the significant, concrete actions we have taken in response. My Department facilitates extensive engagement with stakeholders in advance of new legislative measures being introduced and this collaborative, transparent process provides certainty to businesses situated here and those considering investing into the future.

It is therefore my view that a considered, collaborative implementation of the Pillar Two minimum tax agreement, in conjunction with our EU and OECD partners, continues to be in the best interests, both of Ireland and of global businesses investing here.

Question No. 181 answered with Question No. 180.

Tax Reliefs

Ceisteanna (182)

Cathal Crowe

Ceist:

182. Deputy Cathal Crowe asked the Minister for Finance if his Department will consider a relaxation of rules on a temporary basis to allow employers to pay a fuel allowance to their workers without having it taxed, a measure which could be rescinded once fuel prices stabilise. [35974/22]

Freagraí scríofa

Minister for Finance

The Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices including home heating oil,  and for this reason it recently introduced a package of measures to alleviate the impact of increased energy prices on households. 

These measures built on measures already introduced in Budget 2022, provides support to all domestic electricity users via a €200 energy credit and also provides targeted support to vulnerable households via the welfare system.  Low income households have received an overall increase of 55% in Fuel Allowance support provided during the most recent Fuel Allowance season as compared to the previous season taking the €5 increase in the weekly payment introduced as part of the Budget last October, the €125 lump sum payment provided earlier this year together and the €100 extra May payment.  

The Government also announced a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil. This measure, to the value of €320 million, was introduced with effect from 10 March reducing the VAT inclusive excise duty on petrol, diesel and Marked Gas Oil (MGO) by 20, 15 and 2 cent per litre respectively. These reductions mitigate the cost of a fill of a 60 litre tank by some €12 for petrol and €9 for diesel. This assists all transport users, rural and urban, including commuters, business and farmers. These measures have been extended to 11 October 2022, with an additional 3 cent reduction for MGO at an additional cost of €97m. 

In addition to these measures, the Government took the decision to reduce the rate of VAT on the supply of gas and electricity from 13.5% to 9% until October 31, 2022, costing an estimated €46m and resulting in estimated annual savings of €49 on gas and €69 on electricity bills for households. 

I would also draw the attention of the Deputy to the "small benefit exemption". Where an employer provides an employee or director with a small benefit, that is, a voucher or a benefit (a tangible asset other than cash) with a value not exceeding €500, that benefit will be exempt from Income Tax, PRSI and USC, provided all of the conditions, contained within section 112B of the Taxes Consolidation Act 1997 are satisfied.

The conditions are as follows -

- the incentive is provided in the form of a voucher or other non-cash item;

- where the incentive provided is in the form of a voucher, this voucher must only be for the purchase of goods or services and must not be capable of being exchanged in part or in full for cash;

- the value of the incentive does not exceed €500; and

- the incentive does not form part of a salary sacrifice arrangement.

Where all of the conditions are not satisfied, the exemption does not apply and the benefit is subject to tax in the usual way, in accordance with section 112 TCA 1997.

Following the start of the COVID-19 pandemic, Revenue has in certain circumstances concessionally waived the requirement that only one voucher issues per year for the 2020 and 2021 tax years and has permitted an employer to issue two vouchers to the (maximum) value of €500.  This concessionary treatment continues to apply for 2022. It applies where the additional award is related to an employee's exceptional efforts during the COVID-19 pandemic and where the employee continued to work during the restricted period.

All other conditions of section 112B TCA 1997 must be met, for example the maximum cumulative value of incentives must not exceed €500 and the voucher or incentive must not be redeemable, in full or in part, for cash.  Appropriate documentation must be retained by an employer where this concession is availed of.

The Deputy will be aware that 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.

Mortgage Interest Rates

Ceisteanna (183)

Jennifer Carroll MacNeill

Ceist:

183. Deputy Jennifer Carroll MacNeill asked the Minister for Finance the response and actions taken by the Central Bank in relation to tracker mortgages; if this situation and response will be applied to other similar cases ongoing and in the future; and if he will make a statement on the matter. [36036/22]

Freagraí scríofa

Minister for Finance

The role of the Central Bank of Ireland includes ensuring that the financial system operates in the best interests of consumers and the wider economy. The best interests of consumers are protected and confidence and trust in the financial system is enhanced through effective regulation of firms and markets.

In line with the its mandate, the Central Bank intervened with a number of lenders between 2008 and 2015 in relation to tracker mortgages, requiring, among other things, certain lenders to offer affected customers the right to return to a tracker rate and/or payment of redress and compensation while at the same time strengthening the regulatory protections for tracker mortgage customers. The Central Bank launched the Tracker Mortgage Examination (TME) in December 2015 after it became clear, through combined supervisory and enforcement work and from information from consumer advocates, members of the public and public representatives, that tracker issues could potentially be industry wide.

The TME required all lenders to review their loan book to ensure compliance with both regulatory and contractual requirements in relation to tracker mortgages. Where impacted customers were identified, the Central Bank expected that those customers receive redress and compensation in line with the detriment suffered. Approximately 42,000 customers have been identified as impacted by tracker failures by their lender and €737m in redress and compensation has been paid to those customers by their lenders. 

While the supervisory phase of the TME concluded with the publication of the Central Bank’s “Tracker Mortgage Examination Final Report” in July 2019, the Central Bank continues to monitor the outcomes of any complaints, appeals and court cases. Any person who is still not satisfied with the outcome of their engagement with their lender in relation to the tracker mortgage issue may take their individual case to the independent Financial Services and Ombudsman’ Office. 

The Central Bank’s enforcement investigations and actions build on the TME and further demonstrate its commitment to its consumer protection mandate.

To date, the Central Bank has concluded five enforcement actions against firms relating to tracker mortgage-related failings identified under the Tracker Mortgage Examination, imposing fines totalling €173.8 million.

The TME and the imposition of significant fines on lenders send strong signals to lenders that misconduct on their part will have serious consequences.

It is also important that our legislative and regulatory framework is fully up to date and that senior banking executives can be held to account.  The Central Bank (Individual Accountability Framework) Bill, which will introduce a Senior Executive Accountability Regime (SEAR) for the financial services industry, will be key to this. This Bill will be published later this month.

Budget Process

Ceisteanna (184)

John Lahart

Ceist:

184. Deputy John Lahart asked the Minister for Finance if he has received a budget submission from an organisation (details supplied); his response to the proposals; and if he will make a statement on the matter. [36055/22]

Freagraí scríofa

Minister for Finance

I can confirm that I have received the pre-budget submission of the organisation to which the Deputy refers. 

The contents will be considered in the context of the forthcoming Budget and the Deputy will be aware that 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.

Tax Reliefs

Ceisteanna (185)

Niamh Smyth

Ceist:

185. Deputy Niamh Smyth asked the Minister for Finance if an appeal by a person (details supplied) will be reviewed; the status of same; and if he will make a statement on the matter. [36057/22]

Freagraí scríofa

Minister for Finance

The 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. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of the following medical criteria, in order to obtain a Primary Medical Certificate:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA) who operate out of the National Rehabilitation Hospital in Dun Laoghaire.

I have no role in relation to the granting or refusal of PMCs and the HSE must be independent in their clinical determinations. 

Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal an Expression of Interest seeking suitable candidates for the Board closed on 29th April 2022. The selection process is nearing its final stages for this initial round of recruitment. A second Expression of Interest campaign, which is due to close on the 5th July, has also been launched to seek additional applicants. Information on this is being circulated widely among the medical community and other relevant areas. 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. 

Insurance Industry

Ceisteanna (186)

Rose Conway-Walsh

Ceist:

186. Deputy Rose Conway-Walsh asked the Minister for Finance to provide an update for publicans who are awaiting payment from insurance companies for business closure claims as a result of the pandemic; and if he will make a statement on the matter. [36125/22]

Freagraí scríofa

Minister for Finance

As the Deputy will appreciate, as Minister for Finance I cannot adjudicate or comment on ongoing test cases in relation to business interruption insurance claims. This includes matters in relation to issues of quantum, which are still before the Courts. The Government’s consistent view has been that insurers should engage with impacted businesses honestly, fairly and professionally to honour the terms of the policy cover, in line with the Central Bank of Ireland’s Consumer Protection Code and other relevant regulations.

In this regard, I would note that the Central Bank of Ireland’s COVID-19 Business Interruption Insurance Supervisory Framework sets out its expectations of insurance firms in handling COVID-19-related business interruption claims. Where customers have an entitlement to claim under such a policy, my expectation is that these will be processed, paid promptly and in full.

The Central Bank of Ireland has stated that a number of insurers accepted and commenced settling claims as a result of its supervisory interventions, and I welcome recent data that as at 30 April 2022, more than €179 million has been paid to 5,482 policyholders through settled claims and interim payments. This figure includes 4,635 claims which have been fully settled, and 847 who have received interim payments.

The Central Bank of Ireland has indicated that it will continue to work in line with the Business Interruption Insurance Supervisory Framework, which sets out that where legal action results in an outcome that has a beneficial impact for similar customers, all relevant firms are required to take urgent action to ensure those customers benefit from the final outcome. While the vast majority of claims are now closed, I understand that the Central Bank of Ireland will continue to monitor the outcome of any remaining test cases in the Courts, including the FBD test case on quantum and will act swiftly should any of these judgments have a wider beneficial impact for similarly impacted groups of customers.

Strategic Infrastructure

Ceisteanna (187)

Michael Fitzmaurice

Ceist:

187. Deputy Michael Fitzmaurice asked the Minister for Finance the Department that is in control of the Ireland Strategic Investment Fund; if this fund is for regional development in the Republic of Ireland; and if he will make a statement on the matter. [36156/22]

Freagraí scríofa

Minister for Finance

I am informed by the NTMA who manage the Ireland Strategic Investment Fund that the ISIF invests on a commercial basis to support economic activity and employment in Ireland. ISIF invests across a range of strategic priorities including Housing and Enabling Investments, Climate Action, scaling Irish companies and supporting the Food and Agriculture sector. A focus on regional investment to support balanced growth has been and remains an important element of ISIF’s strategy. 

ISIF recently launched a new initiative as a cornerstone of its investment strategy – this new initiative will result in major investment being targeted in each of Ireland’s regional cities in the form of new places to work, places to live and enabling investments resulting in regeneration of our regional city centres. ISIF will also target investments at emerging and scaling businesses in the regions and other opportunities to support sustainable growth. ISIF already has a significant track record of investing in the regions and I am advised that ISIF has a currently active pipeline of investments which include a significant number of investments across the regions.

Although the NTMA comes under my remit, as Minister for Finance, I have no role in individual ISIF transactions or ISIF’s commercial decision making, more generally. The Ireland Strategic Investment Fund (ISIF) was established by statute under the National Treasury Management Agency (Amendment) Act 2014. The Act also established an independent Investment Committee to oversee the implementation of ISIF's investment strategy.

Banking Sector

Ceisteanna (188)

Claire Kerrane

Ceist:

188. Deputy Claire Kerrane asked the Minister for Finance if his attention has been drawn to the difficulties being experienced by older people with accounts with a bank (details supplied) who have to find alternative banking and have no photographic identification, passport or driver's licence, which many in their 80s and 90s, in particular, do not have; if provision will be made for these citizens; and if he will make a statement on the matter. [36212/22]

Freagraí scríofa

Minister for Finance

While it is regrettable that Ulster Bank has decided to exit the market, such decisions are commercial matters and are the sole responsibility of the board and management of the bank, which must be run on an independent and commercial basis. My priority now is that the withdrawal takes place in an orderly manner. The importance of this is emphasised in all engagements with the banks and my officials and I will continue to engage with relevant stakeholders, both public and private, to ensure that impacted customers face the least amount of disruption in migrating their accounts over the coming months.

In relation to the setting up of new accounts, Credit and Financial Institutions are obliged to identify and verify their customer’s identity on the basis of documents or information that they have reasonable grounds to believe can be relied upon to confirm the identify of their customer.  Institutions often use official documents, like passports or driving licences, in order to verify a customer’s identity.  However, neither the relevant legislation (the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended), nor the Central Bank of Ireland are prescriptive as to what documents and information can be relied upon.  This reflects the risk-based approach to anti-money laundering and countering the financing of terrorism (AML/CFT) compliance and supervision. Accordingly, institutions have some flexibility in regards to the forms of identity documentation they may wish to rely upon.

Therefore, the AML/CFT legal framework is sufficiently flexible to allow institutions to accommodate both financial inclusion and effective risk management through reliance on various forms of identification.

Under the provisions of the Consumer Protection Code, the Central Bank expects that all regulated firms take a consumer-focused approach and act in their customers’ best interests:

- Provision 2.11 of the Code provides that a regulated firm must not, through its policies, procedures, or working practice, prevent access to basic financial services. This provision aims to ensure that vulnerable people can gain access to mainstream financial services.

- Provision 3.1 of the Code provides that “where a regulated entity has identified that a personal consumer is a vulnerable consumer, the regulated entity must ensure that the vulnerable consumer is provided with such reasonable arrangements and/or assistance that may be necessary to facilitate him or her in his or her dealings with the regulated entity.”

I would also advise the Deputy that all of the banks have dedicated customer phone numbers for vulnerable customers to support them as required.

Banking Sector

Ceisteanna (189)

Thomas Gould

Ceist:

189. Deputy Thomas Gould asked the Minister for Finance if he has engaged with banks regarding the reduction of quarterly fees, given the current climate, and encouraged them to notify people of quarterly fee charge withdrawals prior to withdrawal [36225/22]

Freagraí scríofa

Minister for Finance

As Minister for Finance, I do not have a direct function in the operations of any bank. Although the State is a shareholder in some of the banks operating in the State, they must be run on a commercial and independent basis.

The charging of fees is a commercial decision for regulated entities, within the parameters of the regulatory framework.

Under Section 149 of the Consumer Credit Act, 1995 (as amended)(the Act), credit institutions must notify the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges, in respect of the provision of any of the following services: 

- making and receiving and receiving payments; 

- providing foreign exchange facilities; 

- providing and granting credit; 

- maintaining and administrating transaction accounts. 

Each notification received by the Central Bank is assessed in accordance with the specific criteria set out in Section 149 of the Act. The Central Bank may either approve (in full or at lower levels than requested) or reject a credit institution’s application under Section 149. In fulfilling its statutory role under Section 149, the Central Bank assesses these notifications in accordance with the following specific assessment criteria as set out in the legislation: 

- the promotion of fair competition; 

- the commercial justification; 

- the effect new charges or increases in existing charges will have on customers; and 

- passing on costs to customers. 

Approvals are issued in the form of a letter of direction and the entity is legally bound to comply with this letter of direction. The letter of direction sets out the maximum amount the credit institution is allowed to charge. Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive fees at their discretion for commercial or competitive reasons. The letter of direction also sets out that credit institutions must publish the charges to be imposed on notices, leaflets, and promotional material etc. which should be made available to customers and on the credit institutions website if appropriate (the withdrawal of the fees will also be notified to the relevant customers prior to withdrawal).

Where a regulated entity intends to introduce new charges or increase any existing charges, under provision 6.18 of the Consumer Protection Code, it must give notice to affected consumers of the introduction of any new charges or of increases in charges, specifying the old and new charge, at least 30 days prior to the charge taking effect. 

If customers are unhappy with their current account provider for any reason, including cost, it may be useful to know that Competition and Consumer Protection Commission operates a comparison tool for current account fees on its website. This can be used by consumers to find the account which best meets their needs.

Appointments to State Boards

Ceisteanna (190)

Michael Ring

Ceist:

190. Deputy Michael Ring asked the Minister for Public Expenditure and Reform the number of former civil servants who are currently serving on State boards under his remit; the number of former county managers and chief executive officers of local authorities who are currently on each of the State boards under his remit; and if he will make a statement on the matter. [33858/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

I wish to advise the Deputy that no Board members appointed to the State Boards under the remit of my Department are former County Managers or former Chief Executive Officers of a local authority.  Each of the three State Boards under the remit of my Department (the Data Governance Board, the National Shared Services Advisory Board and the Public Appointments Service Board)  currently have one Board member that would be classified as a former Civil Servant.