Lenihan, Brian JosephWednesday, 13 May 2009 |
Dáil Eireann Debate
Page of 186
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Order of Business.
Question put: “That the proposal for dealing with No. 2 be agreed to.”
Voted Yes 
Priority Questions - National Assets Management Agency.
Was asked: if he will publish the heads of legislation on the National Assets Management Agency and an evaluation of the way it will work in order that there can be a broad based debate on the proposal before ...
It is my stated intention that enabling legislation for the establishment of NAMA will be introduced during the summer Dáil session. As is the case with all legislation, the Dáil will have the opport...
This is not a matter of one approach pioneered by one group. This was a very detailed exercise carried out within the NTMA, which advises the State on financial matters, building on its expertise and...
I have discussed approaches taken in the French Republic with individuals who administered them, and what we propose is in line with what was proposed there.
The Government will act on legal challenges on sound legal advice provided by the Attorney General and will ensure anything proposed is in accordance with the Constitution and law. It is incorrect to...
Because clearly, if they are non-performing in the land and development category they are seriously exposed and it would be irrational not to include the totality of their exposures.
Because the degree of impairment to our banks is greatest in the land and development book. That is why that section of the banks’ exposures is being systematically tackled.
The crucial point about all these figures is book value and that brings us back to the crucial question of valuations.
Priority Questions - Unemployment Levels.
Was asked: his views on the latest ESRI quarterly economic bulletin and, in particular, their forecast that unemployment will average 16.8% by the end of 2010 and GNP will fall 13.5% over the 2008-10 period; a...
In the recent budget, my Department projected that GNP would contract by 8% this year and by 2.8% next year. Combined with the 3.1% contraction which was recorded last year, this implies a cumulative...
First, the European Commission forecasts were issued on 4 May and predict GDP to contract by 9% in 2009. Concerning its forecasts on the size of the deficit, the Commission warmly welcomed the recent...
Far from it. First, with regard to the pain I acknowledged to have been taken in this country, I was certainly not boasting about it. I was pointing out——
That is not what the people in Killarney thought.
That is the construction the Deputy wishes to place on what I said. A large number of delegates came over to me, thanked me and said, “Thank God, there is hope for this country”. We must face facts h...
I understand it is a substantial sum.
It is in excess of that. This is the sum——
These are the sums the European Investment Bank has made available to us.
Priority Questions - Banking Sector Regulation.
Was asked: if he has data available to him on the trends in business credit since the bank guarantee in September 2008; and if he will make a statement on the matter.
Data on business credit are available to me from a number of sources including the Central Bank and the Financial Regulator. Returns are also made by institutions covered under the guarantee scheme. ...
I shall consider the matter when Fine Gael outlines its proposals in relation to bad loans because the availability of EU funding through the European Central Bank would be contingent on this. When t...
The report is not ready because of the inclusion of all the banks in the Irish picture. It will be ready by the end of June.
Priority Questions - National Asset Management Agency.
Was asked: his views on whether the State, through the National Asset Management Agency, could potentially significantly overpay for assets transferred to NAMA and that any such overpayment would constitute an...
The objective of the National Asset Management Agency, NAMA, is to strengthen the banks’ balance sheets which will considerably reduce uncertainty over bad debts and as a consequence ensure the flow o...
I am glad the Deputy at least acknowledges that valuation is the crucial issue, that the valuation of the transferred assets lies at the heart of what has to be done. To ensure best value for money f...
——in establishing a basis with the interim managing director and elaborating on a proposal which can be translated into legislative form and considered by the House. Loans will be transferred from th...
We must proceed with great care because the valuation of these assets must be done to protect and take account of the interests of the taxpayer.
That is why I am not prepared to rush into giving a personal view on how the valuation should be conducted. I will take account of proper competent advice on that. That is my intention.
Deputy Burton casually threw out the suggestion, as she does so often in banking matters, that this is a conspiracy to enrich bank shareholders. That is very wide of the mark. The purpose of this ex...
We should be very careful.
I am not trying to warn Deputy Burton off.
I am more than pleased to have discussions. We had an extensive discussion at a meeting of the Joint Committee on Finance and the Public Service. The covered institutions are not wholly bankrupt. ...
Priority Questions - Jobs Initiatives.
Was asked: if he will review the job stimulus measures adopted in other countries; and if he has identified initiatives which could be successful here.
The first fundamental way to protect and expand Irish jobs is to get our competitiveness right and to put the public finances on a sound footing. This we are doing. The second key strategy is to inv...
I examined Fine Gael’s proposals in this regard. I provided access to my Department before the budget and I am glad Deputy Bruton used that facility. Many of the Fine Gael proposals replicate the Go...
We will not have an economy without a viable banking sector. The steps the Government is taking on banking, whether through recapitalisation or rescue measures, are not discretionary.
If we decide to let the banking system fail the economy will see——
——a reduction three or four times that already envisaged for this year. I appeal to Opposition parties to stop making politics out of banking. There is no advantage to our economy in that. We must ...
Yes, we will have to take the bad loans off the banks.
We have had debate after debate since last September about banking.
I am interested in decisions which will repair the banks’ balance sheets and ensure they are restored as the viable motor of the economy.
Throughout the world, we have seen a dramatic lack of confidence and collapse in the financial system. If we repair that motor we will repair our economy. The idea that we can ignore this and engage...
Other Questions - EU Funding.
Was asked: the progress that has been made on the implementation of the Community part of the European economic recovery plan; and if he will make a statement on the matter.
The European economic recovery plan was endorsed by the European Council at its meeting of 11 and 12 December 2008 and amounts to more than €400 billion. The Community part of the plan, which has bee...
The €5 billion community fund of the European economic plan must be matched. The Ireland to Wales interconnector has been included on the list and €110 million has been earmarked for that project. T...
I agree with Deputy Burton that this is an important issue and I understand it is being addressed by my colleague, the Minister for Enterprise, Trade and Employment. In regard to the question of avai...
Other Questions - Capital Expenditure.
Was asked: the projects he hopes to finance by way of a new pension bond; and if he will make a statement on the matter.
It is premature to identify specific projects that may benefit from any additional investment in infrastructure by pension funds. I note that we are spending a considerable sum on capital this year, ...
The protection of the taxpayer and our borrowing capacity arises in this case. The crucial issue in any bond issue is the rate of interest which accrues, a matter of considerable sensitivity having r...
It will support efforts to increase competitiveness and raise economic growth. My Department and the NDFA, National Development Finance Agency, are working closely together in exploring this area. A...
I point out to the Deputy that simply achieving an off balance sheet solution or status for projects is not the main driver in our capital investment decisions. As I am often remind by Deputy Bruton,...
Deputy Burton asked a few questions. Of course, money is safe in Irish banks, by virtue of the Government guarantee to them. It is important to make that point. Money deposited in Irish banks is ve...
In that regard, it has been considering, for example, the east-west electricity connector. It is a question of identifying suitable investments that will give a rate of return to the fund. That is c...
As the Deputy is aware, there are a number of possibilities, through An Post, for citizens to invest in entities managed by the NTMA.
On the pension fund proposal, of course, there is a concern, the same concern the Deputy expressed about the valuation of assets in the National Asset Management Agency. Any rate of return on the iss...
Progress has been made with the public private partnership system in the school building programme; it has been implemented. I am open to the use of infrastructure bonds in that context. One great d...
Other Questions - Mortgage Redemption Fees.
Was asked: his proposals to help persons on high fixed rate mortgages and who may be having difficulties meeting loan repayments and who cannot afford the large lump sum charge to exit the fixed rate mortgage ...
As the Deputy will be aware, fixed rate mortgages can be regarded as a form of insurance against interest rate changes as they provide certainty and security for borrowers regarding the level of their...
Once again, there is no such thing as NAMA negotiations on the funding or bail-out of the banks. This intellectually facile, lazy approach does not add anything to the public debate on the subject.
There are no such negotiations. The decision on the valuation of the assets will be made on expert advice by the Houses, not by the banks. There is no question of negotiations preceding the establis...
In order to protect the taxpayer, we will have to set the price. We will not engage in negotiations with the institutions concerned. We can certainly have discussions, but the idea they will have ne...
While I have not yet received the actuarial advice, I agree it is important that we survey this matter with great care and that any actuarial assessment produced can be analysed by myself. I am certa...
I gave my analysis in my reply. Like Deputy Morgan, I am well aware of those who are hard pressed by the current difficulties in our economy. However, the fact is that borrowers entered a contract t...
I will reiterate what I said on the record: “When a borrower signs a fixed rate mortgage contract with a mortgage provider, the lender in turn enters into an agreement to borrow the money at an agreed...
It is for the period of time of the fixed rate mortgage. I also stated: The mortgage lender must repay the money at this agreed rate. There is a cost to the institution if the fixed rate agreement i...
As part of the recapitalisation, a number of initiatives were taken in regard to the protection of those with distressed loans in the recapitalised institutions. The Financial Regulator has drawn up ...
Other Questions - Banks Recapitalisation.
Was asked: if a recapitalisation request from Anglo Irish Bank has been communicated to him; and his view on the performance, the challenges and the future for the bank.
My Department is in ongoing discussions with Anglo Irish Bank on a range of matters, including the bank’s capital position. The Government has stated that support will be provided as necessary to Ang...
An exact figure has not been reported to my Department. The matter is still under examination at my Department and the relevant information will be provided as it emerges. In regard to the review of ...
The report has been received.
I do not have further details of that report to hand but it has been received and we are in discussion with the board of Anglo Irish Bank about it.
There are so many assumptions in the Deputy’s questions that I wonder where to begin. NAMA is being established under the aegis of the National Treasury Management Agency. In bailing out Anglo Irish...
My reply was not vague. Of course Anglo Irish Bank will be covered by NAMA, because it is owned by the taxpayer. What I was pointing out clearly, when Deputy Burton used the word “bailout”, was that...
To answer the question, I do not have that information to hand. I accept new business has been limited in extent.
We can contact the board.
I am not elaborating beyond what I said in the Budget Statement, because we are in discussions with the European Commission. Anything we do will be in line with practice that has taken place already ...
Finance Bill 2009: Second Stage (Resumed).
I thank Deputies for their many considered and useful contributions to the debate on the Finance Bill 2009. I look forward to a constructive and informed discussion on Committee Stage. I will respon...
For the Deputy’s information, the average tax rate for a single individual on €80,000 was 45% in 1997, some 9 percentage points higher than it is today.
I welcome the comments of the Minister of State, Deputy Kelleher, and Deputy Fahey that the income levy is a progressive measure. It is never easy to raise taxes but when it is necessary to do so, it...
Question put.
Voted Yes
Finance Bill 2009: Referral to Select Committee.
I move: That the Bill be referred to the Select Committee on Finance and the Public Service, in accordance with Standing Order 122(1) and paragraph 1(a)(i) of the Orders of Reference of that committee...
Banking System: Motion (Resumed).
Amendment put.
Voted Yes
Question put: “That the motion, as amended, be agreed to.”
Voted Yes
Written Answers - Tax Forecasting.
Was asked: if he has made changes in his Department’s tax forecasting procedures; and if he will make a statement on the matter.
Tax revenues are forecast by my Department on a disaggregated individual tax-head basis using relevant macroeconomic drivers and, where appropriate, certain elasticity factors. Last year the Departmen...
Written Answers - National Asset Management Agency.
Was asked: if it is legally possible for the National Asset Management Agency to engage in its initial valuation work before the relevant legislation is enacted; and if he will make a statement on the matter.
Pending the establishment of NAMA on a statutory basis an interim Managing Director has been appointed and I will announce an Advisory Committee in the coming days. The establishment of NAMA and inte...
Written Answers - Financial Services Regulation.
Was asked: his views on the recent year end results published by a bank (details supplied); his further views in particular, on the practice of rolling up of interest during 2008 amounting to one third of custo...
The institution to which the Deputy refers is an independent financial institution operating on a commercial basis and it would not be appropriate for me as Minister for Finance to comment in specific...
Was asked: if his attention has been drawn to the fact that many mortgage holders on high rate, fixed interest mortgages who have suffered significant income reductions in the past year and who have not benefit...
As the Deputy will be aware, fixed rate mortgages can be regarded as a form of insurance against interest rate changes as fixed rate mortgages provide certainty and security to borrowers regarding the...
Written Answers - Tax Code.
Was asked: his latest assessment of tax changes in the USA which might adversely affect Irish interests; and the initiatives he has taken to try to pre-empt such moves; and if he will make a statement on the ma...
The Deputy will be aware that on 4th May last the US Administration announced proposed changes to the so called system of tax deferral. The announcement of these changes, which had been flagged by th...
Written Answers - Public Service Pay.
Was asked: the way he plans to operate the early retirement and employment embargo; and the savings in the public service pay bill which he estimates from each measure.
Was asked: the expected Exchequer saving for 2009 and 2010, respectively, resulting from the incentivised career break and incentivised early retirement schemes for public servants; and if he will make a statem...
I propose to take Questions Nos. 69 and 112 together. The Government has recently announced a range of initiatives which are intended to lead to savings in the public service pay bill. The first of th...
Written Answers - Proposed Legislation.
Was asked: if he will proceed with abolishing long service increments to TDs; when he will proceed with same; if legislation is necessary; and if he will make a statement on the matter.
Among the measures announced in my Budget Statement to this House on the 7th April was the decision of the Government to make additional changes to the remuneration of members of the Oireachtas. One o...
Was asked: if he will introduce legislation to establish an extra judicial debt settlement mechanism for persons who have problems meeting loan repayment commitments and whose creditors are seeking an agreed re...
The Deputy may wish to note that number of important initiatives are in place to assist consumers who have fallen into debt or are in danger of falling into debt. For example my colleague, the Ministe...
Written Answers - National Asset Management Agency.
Was asked: if the estimated value of the toxic assets of the banking institutions which was declared to be in the region of €90 billion has been revised; and if he will make a statement on the matter.
When I announced the Government’s proposal to establish a National Asset Management Agency (NAMA) in early April, I indicated that the potential maximum book value of loans to be transferred to NAMA w...
Written Answers - Stability and Growth Pact.
Was asked: if the EU has expressed a view on the maximum borrowing levels before penalty clauses might apply to Ireland under the stability pact.
Article 104 of the Treaty governs the operation of the excessive deficit procedure of the Stability and Growth Pact. On foot of Ireland’s deficit figures for 2008 the Ecofin Council made a recommend...
Written Answers - Parking Levies.
Was asked: if he and the Department of the Environment, Heritage and Local Government plan to introduce a €200 urban parking levy; if so, the timeframe for the introduction of the new tax; the persons to whom i...
Planning for the introduction of a car parking levy for urban areas is at an advanced stage and details of its introduction will be announced shortly. As previously indicated, the levy will apply in t...
Written Answers - Insurance Industry.
Was asked: his views on recent reports that insurance costs are rising at a time when prices generally are falling; and his further views on whether policy changes could play a role in containing these trends.
I am aware of the reports referred to by the Deputy. Insurance costs reflect a broad range of factors, including for example, the level of cover, the number of claims, legal and administration costs,...
Written Answers - Banking Sector Regulation.
Was asked: if he is monitoring charges made to bank customers over inter-bank rates set by the European Central Bank; and if he will make a statement on the matter.
The decision on pass through of ECB rate reductions to variable rate mortgages is a commercial decision for the financial institution concerned. This decision will reflect a range of different factor...
Written Answers - Banking Sector.
Was asked: his views on the suggestion the bank rescue plans here could be the highest, as a proportion of national income, of any developed economy; his further views on the fact that the final cost of bailing...
I assume the Deputy is referring to a suggestion which has been attributed to the IMF’s Global Financial Stability Report, April 2009. I am of the opinion that these figures should not be relied on as...
Written Answers - Proposed Legislation.
Was asked: if he will proceed with removing ministerial pensions for sitting TDs; when he will proceed with same; if legislation is necessary; and if he will make a statement on the matter.
In my Financial Statement of 7 April, I stated that the Government had decided to introduce a number of additional changes to the remuneration of Deputies and Senators including discontinuing the arra...
Written Answers - Public Service Expenditure.
Was asked: if he will publish the report of the expenditure review group under the chairmanship of Colm McCarthy prior to budget 2010; if so, the expected date of publication; and if he proposes institutional a...
Mr Colm McCarthy is chairing the Special Group on Public Service Numbers and Expenditure Programmes. Under its Terms of Reference, the Group is to report to me by the end of June and this is on cours...
Written Answers - Tax Code.
Was asked: if he plans to publish the report of the taxation commission immediately after its presentation to Government; the expected date of publication; and if he proposes institutional arrangements for the ...
The report of the Commission on Taxation is due to be presented to the Government in July and will be published shortly thereafter. The terms of reference of the Commission on Taxation are broadly def...
Written Answers - Financial Institutions Support Scheme.
Was asked: the reporting dates imposed on the covered banks in respect of credit information, the level of covered liabilities and the payment of insurance premium and of share coupons for the guarantee and rec...
Officials from my Department, the Department of Enterprise Trade and Employment, the Central Bank and the Financial Regulator are in regular contact with the banks regarding the flow of lending to sma...
Written Answers - Election Management System.
Was asked: the estimated cost of running the European elections and by elections on 5 June 2009, with an outline of the main items of expenditure; and if he will make a statement on the matter.
Was asked: the estimated cost to his Department of European election 2009.
I propose to take Questions Nos. 82 and 137 together. The legislative position governing expenditure on elections is mainly the statutory responsibility of the Minister for Environment, Heritage and L...
Written Answers - Financial Institutions Support Scheme.
Was asked: if he plans to recapitalise building societies (details supplied).
The institutions to which the Deputy refers are covered under the Government’s guarantee Scheme. This has led to increased scrutiny and oversight of the operations of the institutions and to increased...
Written Answers - Financial Services Regulation.
Was asked: the process in which he is engaged to reform the regulatory regime of the financial sector; when he expects this process to conclude; his key objectives as part of this process; and if he will make a...
Was asked: if he plans to make institutional changes in the arrangements for financial regulation; if he will publish an assessment of issues in advance of presenting proposals to Government; and if he will pre...
Was asked: the progress made to date in respect of the establishment of the proposed Irish banking commission; and if he will make a statement on the matter.
I propose to take Questions No. 84, 87 and 117 together. I outlined the principles for major reform to our financial regulatory structures in my Budget Statement of 7 April, which provide for new str...
Written Answers - National Asset Management Agency.
Was asked: the type of management structure, governance, reporting arrangements, and the staff and board selection procedures which he envisages for the National Asset Management Agency; and if he will make a s...
The National Asset Management Agency (NAMA) will be established on a statutory basis, under the aegis of the National Treasury Management Agency (NTMA). NAMA will be an independent commercial entity r...
Written Answers - Corporate Responsibility.
Was asked: his views on proposals made by a group (details supplied) for the inclusion of corporate responsibility in terms of ethics and social concern as a criterion in the award of public procurement tenders...
I am satisfied that the existing procedures used by public authorities in awarding contracts adequately reflect the general issues of ethics and social concern raised by the Deputy. EU Treaties and Pu...
Written Answers - Financial Services Regulation.
Was asked: the status of the Revenue Commissioner’s investigation in holders of life policies here; and if he will make a statement on the matter.
I take it that the Deputy is referring to the investigation initiated by Revenue in 2005, focussing on the tax affairs of policyholders who used certain life assurance investment products to evade tax...
Written Answers - Financial Institutions Support Scheme.
Was asked: the way he will manage the State role on the banks which are to be recapitalised.
Firstly the NPRF Commission will hold the shares on the State’s behalf and develop a shareholder/company relationship with the banks. Also arrangements will be put in place to monitor closely the com...
Written Answers - Tax Code.
Was asked: if, in the wake of 7 April 2009 budget changes to mortgage interest relief, persons who have a mortgage for less than seven years are entitled to interest relief if they had received mortgage interes...
As I outlined in the recent Budget, with effect from 1st May 2009, mortgage interest relief is being limited so that the interest payable on a qualifying home loan qualifies for tax relief for the fir...
Written Answers - Financial Services Regulation.
Was asked: the steps which he is taking to address the cost of sub-prime mortgages; the discussions he has had with the Irish Financial Services Regulatory Authority on the issue; and if he will make a statemen...
As the Deputy will be aware, the Government took steps in October 2007 via an amendment to the Central Bank Act, 1997, to provide for an appropriate system of authorisation and supervision of retail c...
Written Answers - Pension Provisions.
Was asked: the gross and net revenue raised each week from the public service pension levy in gross and net terms; and the estimate for its yield in 2009 and 2010 in net and gross terms.
As published in the Revised Estimates for Public Services 2009 on 23 April 2009, it is currently estimated that receipts from the Public Service pension-related deduction will come to just under €940 ...
Written Answers - Social Welfare Benefits.
Was asked: if his attention has been drawn to the issues in relation to the imposition of means testing for child benefit or making it subject to taxation; if so, what are these issues; and if he will make a st...
Was asked: his plans for child benefit payments; the legal obstacles which exist in relation to his plans; the savings he expected to make as a result of such changes; and if he will make a statement on the mat...
I propose to take Questions Nos. 93 and 103 together. The position in relation to Child Benefit is as set out in my Supplementary Budget on 7 April 2009. The Government does not believe that it is fai...
Written Answers - Financial Institutions Support Scheme.
Was asked: if he will extend the bank guarantee beyond September 2010 in its current form; if the establishment of the National Asset Management Agency is intended to allow the cessation of the bank guarantee i...
As the Deputy will be aware, in my Supplementary Budget speech on 7 April I announced that the Government intends to put a guarantee in place for the future issuance of debt securities with a maturity...
Written Answers - Tax Code.
Was asked: his approach to the treatment of tax havens; his views on reports that the Obama administration in the US may introduce fiscal measures which could have a detrimental effect on the Exchequer position...
I am sure that the Deputy will appreciate that it is important to make a distinction between action against tax havens and the proposed changes to the system of tax deferral announced by the US Admini...
Written Answers - Freedom of Information.
Was asked: his views on the suggestions made in the annual report of the Information Commissioner, that the Central Bank, the Financial Regulator, the State Claims Agency, the National Treasury Management Agenc...
I have noted the suggestions made in the Information Commissioner’s annual report for 2008. I intend to bring proposals to Government shortly on an extension of the application of the Freedom of Infor...
Written Answers - Economic Forecasts.
Was asked: his views on the fact that the EU Commission published economic forecasts, so soon after the 7 April 2009 budget, to the effect that the general Government balance deficit would reach 15.6% of GDP in...
New economic forecasts were issued by the European Commission on May 4th last. The forecast by the Commission of a General Government Balance (GGB) deficit of 15.6% of GDP in 2010 was made on the assu...
Written Answers - Financial Institutions Support Scheme.
Was asked: if he will extend the banking guarantee; the cost to the Exchequer for doing so; and if he will make a statement on the matter.
As the Deputy will be aware, in my Supplementary Budget speech on 7 April I announced that the Government intends to put a guarantee in place for the future issuance of debt securities with a maturity...
Was asked: his views on his first six month review of the performance of the bank guarantee and the appropriateness of its charging model; the arrangements for the next six month review; and if he will make a s...
Under paragraph 8 of the Credit Institutions Financial Support the Minister for Finance may review and vary the terms and conditions of the Scheme to ensure that it is achieving the purposes of the Cr...
Was asked: his views on reports that Anglo Irish Bank will require upwards of €2.5 billion in extra capital in order to repair its balance sheet; the way he proposes to finance an increase in capital at Anglo I...
My Department is in ongoing discussions with Anglo Irish Bank on a range of matters, including the bank’s capital position. To date, no significant direct cost has arisen to the Exchequer in respect o...
Written Answers - Motor Industry.
Was asked: his proposals or recommendations to aid the motor trade industry here; and if he will make a statement on the matter.
As the Deputy will be aware the Supplementary Budget announced that a Margin Scheme for second-hand cars was being introduced, with effect from 1 July 2009, whereby dealers would be taxed for VAT purp...
Written Answers - Banking Sector.
Was asked: his views on the establishment of a national investment bank mandated to support and underwrite strategically important infrastructure projects; and if he will make a statement on the matter.
Notwithstanding the severe budgetary problems we face, this Government is spending very substantial amounts on public infrastructure over the next five years. This year, we will be spending 5% of GN...
Written Answers - Financial Sector Regulation.
Was asked: his views on the growing number of financial services intermediaries who are offering debt-handling services at a price to vulnerable mortgage holders who are in arrears and other people in debt; and...
My understanding is that the Deputy may be referring to the provision of a debt management service whereby a firm acts as a “middleman” between an individual and his or her creditors. In such cases th...
Written Answers - Tax Code.
Was asked: if he has had contacts from airline operators, aviation stakeholders or other stakeholders in the wider travel and tourism industry in relation to the impact of the new €10 departure tax on the aviat...
As the Deputy is aware, I announced in Budget 2009 that an air travel tax would come into force in respect of passengers departing from Irish airports on and from 30 March 2009. A general rate of €10 ...
Written Answers - Pension Provisions.
Was asked: if the income tax heading of the Exchequer returns includes both the income levy and the pension levy; the breakdown of the contribution of these revenue streams to total income tax receipts; if he w...
Receipts from the Income Levy are included within the Income Tax heading of the Exchequer Returns. As previously indicated in response to PQ 14171/09 on 7 April, the Revenue Commissioners have advised...
Written Answers - Departmental Purchases.
Was asked: the position in relation to the acquisition of a second mobile container scanner needed to combat cigarette smuggling; and if he will make a statement on the matter.
I am informed by the Revenue Commissioners that the procurement process for the acquisition of a second mobile scanner is progressing. The Project Team responsible for the acquisition is currently as...
Written Answers - Tax Code.
Was asked: his views on temporarily reducing the lower rate of VAT for labour intensive services; and if he will make a statement on the matter.
In Ireland, labour intensive services are in general subject to the reduced rate of VAT of 13.5% including hairdressing, small repair services, window cleaning, and repair/renovation of private dwelli...
Written Answers - Pension Provisions.
Was asked: his views on the recent year end results published by a bank (details supplied); his further views, in particular, on the payment of €27.6 million to a person in respect of their pension entitlements...
As the Deputy will be aware, the pension arrangement referred to was dealt with in the institution’s annual report and accounts for 2008. The report notes that the net after tax contributions made by ...
Written Answers - Tax Collection.
Was asked: the level of VRT received up to 1 May 2009; the way this compares to the same period in each of the years 2007 and 2008; and if he will make a statement on the matter.
As the Deputy is aware, the sale of vehicles, especially of new vehicles, in Ireland and indeed internationally has, due to the contraction in economic activity, declined significantly in the first fo...
Written Answers - Financial Institutions Support Scheme.
Was asked: if he has prepared estimates of the expected capital requirements at banks (details supplied); and if he will make a statement on the matter.
The institutions to which the Deputy refers are covered under the Government’s guarantee scheme. This has led to increased scrutiny and oversight of the operations of the institutions and to increase...
Written Answers - Insurance Industry.
Was asked: his views on declines in the solvency situation of insurance companies based here; and if he will make a statement on the matter.
The position under EU law is that both life and non-life insurers must maintain solvency equal to the higher of a fixed Minimum Guarantee Fund or a Required Minimum Solvency Requirement (based on prem...
Written Answers - National Asset Management Agency.
Was asked: if it is envisaged that the National Asset Management Agency will become, in effect, a development company, raising or providing capital for the purposes of completing development projects for the pu...
NAMA will have a commercial mandate to recover debt and in doing so it will actively manage the loan portfolios that it acquires, taking all necessary steps to ensure the maximum return for the taxpay...
Written Answers - Services for People with Disabilities.
Was asked: the amount of money made available by the State for disability services under the multi-annual investment programme of the national disability strategy; the breakdown of the amount allocated each yea...
The Multi–Annual Investment Programme for Disability 2006-2009 to support the development of high priority disability support services, as announced in budget 2005, provided for a total investment of ...
Written Answers - Departmental Websites.
Was asked: if he will report on the implementation of the eGovernment project; and if he will make a statement on the matter.
As the Deputy will be aware, the focus over the past year has been on making progress with those 20 specific services included in the European Commission’s eGovernment Benchmarks and those eight speci...
Written Answers - Tax Collection.
Was asked: the amount of revenue lost to date in 2009 through the exodus of shoppers to Northern Ireland; his views on whether it was a mistake to increase the level of VAT rather than decrease it as was propos...
As the Deputy may be aware, the Revenue Commissioners and the CSO prepared a report, at my request, on the Implications of cross-Border shopping for the Irish Exchequer. The report was published on m...
Written Answers - National Asset Management Agency.
Was asked: his views on whether resolving the pricing problem is the key variable in determining the final cost to the taxpayer of the bank rescue plan; his further views on the establishment of an independent ...
The objective of NAMA is to strengthen the banks’ balance sheets which will considerably reduce uncertainty over bad debts and as a consequence ensure the flow of credit on a commercial basis to the r...
Was asked: when he expects to appoint a permanent chief executive of the National Asset Management Agency; when he expects to appoint a chairman of the National Asset Management Agency; if he proposes that the ...
The National Asset Management Agency (NAMA) will be established on a statutory basis, under the aegis of the National Treasury Management Agency (NTMA). NAMA will be an independent commercial entity ...
Written Answers - Bank Deposits.
Was asked: his views on the Central Bank report that the deposit base of Irish banks has fallen by €12 billion since the beginning of 2009; and if he will make a statement on the matter.
I take it that the Deputy is referring to data in the latest Quarterly Bulletin (Q2) of the Central Bank and Financial Services Authority of Ireland (CBFSAI), which indicates that there was a reductio...
Written Answers - Tax Collection.
Was asked: his views on the April 2009 Exchequer figures; if he is confident that tax revenue will amount to €34.4 billion for 2009; and if he will make a statement on the matter.
Tax receipts at end-April, at €10.1 billion, are down 24% on the same period last year. This represents 29% of the supplementary budget’s forecast of €34.4 billion and is generally in line with the a...
Written Answers - Financial Institutions Support Scheme.
Was asked: his views on reports that a credit institution covered by the bank guarantee is paying significant bonuses to its front office staff.
Paragraph 47 of the Credit Institutions (Financial Support) Scheme 2008 provides that bonuses for directors or senior executives must be measurably linked to reductions in guarantee charges, reduction...
Was asked: his views on the write-downs recently announced by a bank (details supplied) on its commercial property and development loan book; his further views on whether credit institutions covered by the bank...
I have noted the write downs on commercial property and the development loan book in the institution referred to by the Deputy for the first quarter 2009. These write-downs led to loan loss impairmen...
Was asked: the extent to which he has been able to influence the banking sector to return to traditional banking and lending policies having particular regard to the restoration of public confidence in the bank...
A core Government objective is to free up lending on a commercial basis into the economy to support economic growth. In the context of the bank guarantee scheme and recapitalisation the banks have ma...
Written Answers - Budgetary Measures.
Was asked: the areas of budgetary strategy implemented since 29 September 2008 which were expected to have a positive impact on economic growth; the degree to which this has been measured in the meantime; if it...
A number of budgetary measures have been implemented which will support economic growth. It is, however, difficult to quantify the impact of these measures. For instance, the introduction of the pe...
Written Answers - Banking Sector.
Was asked: the cost to the Exchequer for nationalising Anglo Irish Bank; the expected funding from the State until the end of 2009; the estimated toxic debts of Anglo Irish Bank; if the taxpayer is liable for t...
Under the terms of the Anglo Irish Bank Corporation Act 2009 there is provision for the appointment of an independent assessor to determine the fair and reasonable aggregate value of the Anglo shares ...
Written Answers - Live Register.
Was asked: the expected impact on the 2009 Exchequer position of the live register reaching 500,000 by the end of 2009; the expected impact on the 2010 Exchequer position, with reference to forecasts made on th...
In the recent budget, survey based employment was projected to fall by 7.8% this year and by 4.6 % next year. As a result unemployment on this basis was forecast to rise to 12.6 % this year and to 15...
Written Answers - Financial Institutions Support Scheme.
Was asked: his views on the fact that Anglo Irish Bank could be undermining competition in the retail and commercial deposit market here by offering high interest rates on deposits which are covered by the bank...
Anglo Irish Bank is being run on an arms length commercial basis. Accordingly, normal commercial decisions, which include determining the retail and commercial deposit rates, are matters for the boar...
Written Answers - Financial Services Regulation.
Was asked: the steps which he is taking to address the cost of fixed rate mortgages; the discussions he has had with the Irish Financial Services Regulatory Authority on the issue; and if he will make a stateme...
As the Deputy will be aware, fixed rate mortgages can be regarded as a form of insurance against interest rate changes as fixed rate mortgages provide certainty and security to borrowers regarding the...
Written Answers - Banking Sector.
Was asked: his proposals for treatment of the 20% stake in a retailer (details supplied) accruing to the State as a result of the nationalisation of Anglo Irish Bank which, according to reports, holds a 38.5% s...
As the Deputy will be aware, Anglo Irish Bank is being run on an arms length commercial basis. Consequently, normal commercial decisions, which include those in relation to management and control of t...
Written Answers - Public Sector Remuneration.
Was asked: if the powers provided under the Financial Emergency Measures in the Public Interest Act 2009 include a power by regulation to reduce rents payable by the State and public bodies under leases of land...
The Financial Emergency Measures in the Public Interest Act 2009 introduced the deduction from the remuneration of public servants who are members of a public service pension scheme or who have an ana...
Written Answers - Tax Code.
Was asked: the reason the income levy is being deducted from the income of a person (details supplied) in Dublin 11 who is a medical card holder; and if he will make arrangements to rectify the situation.
The position is that where an employee holds a full medical card at any time during the year they are exempt from paying the income levy. Where the income levy has been applied to a particular pay pe...
Was asked: the reason the income levy is being deducted from a private pension of persons (details supplied) in Dublin 9 in view of the fact that this income falls short of the exemption limit; and if he will m...
I am advised by the Revenue Commissioners that each spouse is treated individually throughout the year by their employer/pension provider when the income levy is applied. According to Revenue records...
Written Answers - Garda Stations.
Was asked: if he will confirm the acquisition closure date in relation to the purchase of the site for a new divisional Garda headquarters (details supplied); if will he clarify the licensing arrangements which...
Written Answers - Tax Code.
Was asked: if he will confirm, with reference to sections 235, 610 and Schedule 15, Paragraph 37, Taxes Consolidation Act 1997 and sections 105 and 54, Finance Act 2007, which give tax exemptions to sporting bo...
I am informed by the Revenue Commissioners that section 235 of the Taxes Consolidation Act (TCA) 1997 gives an income tax exemption to sporting bodies, which have been approved by the Revenue Commissi...
Written Answers - Local Authority Staff.
Was asked: if he has received correspondence from public representatives and county council members from County Wicklow in relation to the retention of staff at a centre (details supplied); his view on this cor...
I have received a letter from Wicklow County Council in relation to the retention of staff at the centre. This is a matter in the first instance for the Minister for the Environment, Heritage and Loc...
Written Answers - Motor Vehicle Registration.
Was asked: the procedures in place by the Revenue Commissioners for seizing cars; the length of time the Revenue Commissioners can hold a vehicle after the individual has paid the VRT; the procedure used for wo...
I am informed by the Revenue Commissioners that the information requested by the Deputy is as follows. A motor vehicle is detained or seized by authorised Officers of the Revenue Commissioners where ...
Written Answers - Tax Code.
Was asked: the reason a voluntary contribution to a private hospital is not allowable under the Charitable Donations Act; if it is intended that such donations will be eligible under this Act in the future; and...
I assume that the Deputy’s question refers to the scheme for tax relief on donations to eligible charities and other approved bodies which is available under section 848A of the Taxes Consolidation Ac...
Written Answers - Financial Institutions Support Scheme.
Was asked: if in return for guarantees given to the banks, he has sought commitment to ensure that lending policies facilitate the generation of employment; and if he will make a statement on the matter.
Was asked: the degree to which he has given instructions to banking and financial institutions in the aftermath of the various salvage packages with a view to providing the necessary capital for the business se...
Was asked: if he has received commitments from the banking sector in the context of the regeneration of the economy following the various State rescue packages offered to the banking system; and if he will make...
Was asked: if direction has been given to the various lending agencies with a view to the provision of employment generating projects in the private sector; and if he will make a statement on the matter.
Was asked: the steps taken to ensure that the lending agencies become aware of the need to provide adequate working capital to the business sector in the present climate; and if he will make a statement on the ...
I propose to take Questions Nos. 146 to 149, inclusive, and 151 together. A core Government objective is to free up lending on a commercial basis into the economy to support economic growth. In the c...
Written Answers - Financial Services Regulation.
Was asked: if his attention has been drawn to the interest rates currently being charged by lending agencies in respect of house improvement or similar loans; the extent to which this is in excess of the intere...
The decision on the interest rate to be charged by a lending institution for house improvement or similar loans is a commercial decision for the financial institution concerned. This decision will re...
Written Answers - Tax Code.
Was asked: if he proposes further incentives to encourage bio-fuel production; and if he will make a statement on the matter.
While the promotion of biofuel is primarily a matter for my colleague, the Minister for Communications, Energy and Natural Resources, the Deputy will be aware the Finance Act 2006 provided for signifi...
Written Answers - Decentralisation Programme.
Was asked: the full extent of the overall costs of decentralisation to date; and if he will make a statement on the matter.
Further to my response on 10th December last, the total amount of expenditure on the property aspects of the programme up to the end of February 2009 is approximately €294m. This is comprised of the ...
Written Answers - Disabled Drivers.
Was asked: when it is expected that action will be taken on the recommendations of the interdepartmental group dealing with the Disabled Drivers’ and Disabled Passengers’ Tax Concession Regulations 1994; the st...
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit), and exemption from motor tax, on the purchase of an...
Written Answers - Economic Competitiveness.
Was asked: the extent to which he has identified inflationary tendencies in the economy which have caused the transfer of jobs to more cost effective locations overseas; and if he will make a statement on the m...
The Irish economy’s competitive position deteriorated since the early part of this decade. Reasons for our decline in competitiveness include an appreciation of the euro as well as wage costs increas...
Written Answers - National Debt.
Was asked: the expected national debt at the end of 2009; and if he will make a statement on the matter.
I am advised by the National Treasury Management Agency that, in line with the Exchequer Borrowing Requirement for 2009 of some €20 billion as set out in the Supplementary Budget, the National Debt wi...
Written Answers - Departmental Expenditure.
Was asked: the extent to which he has monitored public spending throughout all Departments in each of the past two years; the expected outturn for the end of 2009 in respect of such expenditure; if this is expe...
My Department has reported to Government on all expenditure by Departments on a monthly basis since February 2002. This was supplemented by bi-monthly Expenditure Management Reports from the Departme...
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