Written Answers Nos. 157-170
157. Deputy Marian Harkin asked the Minister for Finance his views on the extension of the minimum competency code to lending and term deposits in the credit union sector from October 2024; and if he has concerns that this will impact negatively on the operations of credit unions. [30566/24]
View answerThe Minimum Competency Code (MCC) sets out minimum professional standards for persons providing certain financial services, in particular when dealing with consumers. The aim is to ensure that consumers obtain a minimum acceptable level of competence from individuals acting for, or on behalf of, regulated firms in the provision of advice and information and associated activities in connection with retail financial products.
The MCC reassures consumers that staff they interact with have the necessary knowledge and competence when advising on or selling retail financial products.
Since 3 January 2018, the Minimum Competency Code (MCC) 2017 and the Minimum Competency Regulations (MCR) 2017 have applied to credit unions:
• acting as retail intermediaries;
• when providing mortgage credit agreements in line with the knowledge and competence requirements of the Mortgage Credit Regulations 2016; and
• devising or creating mortgage credit products.
The Central Bank undertook a public consultation in January 2022, proposing to apply the MCC to certain credit union activities. The response to this consultation was broadly positive and the Central Bank concluded that the MCC should apply to in-scope credit union activities.
As a result, from 1 October 2024, the MCC will apply to in-scope activities for credit unions. This means that credit union staff providing services related to lending and term deposits will need to meet minimum knowledge and competence standards.
Credit union staff, who are undertaking in-scope activities on 1 October 2024, and who will be in situ when the transitional period ends, can avail of the transitional arrangements to comply with the requirements and obtain relevant qualifications by 1 October 2028. Existing new entrant requirements will apply for anyone taking up a new role in a credit union after 1 October 2024.
I am aware that the extension of the MCC to the credit union sector may create some operational challenges for some smaller credit unions but with the support of the Central Bank of Ireland and the representative bodies, I am confident that the sector can resolve any such issues arising.
These changes are positive and will help to build on the existing high levels of knowledge and expertise in the credit union sector. The changes are being introduced with a view to ensuring that credit union members are afforded the same level of protection as consumers availing of similar products and services from other regulated entities.
158. Deputy Marian Harkin asked the Minister for Finance for an update on the implementation of the November 2022 retail banking review; and when recommendation 11.2, reducing the reporting threshold and the fee for accessing the Central Credit Register for lower value loans, will be implemented [30567/24]
View answerThe Central Credit Register (CCR) is established by the Central Bank of Ireland under the Credit Reporting Act 2013 (the Act). The Act provides a threshold of reporting to the CCR of €500. It also provides that Credit Information Providers (CIPs) must enquire on the CCR when considering a credit application for €2,000 or greater and may enquire when considering credit applications for a lower value.
The CCR has been established on the general basis that all costs associated with its establishment and operation will be recouped over time. The Credit Reporting Act 2013 (Section 26) (Fees) (Amendment) Regulations 2018 provides for a fee of €5.00 per enquiry. However, a fee of €3.50 per enquiry has been in place for lenders since 1 July 2019 and, following a review, the Central Bank has further reduced the fee to €3.00 per enquiry with effect from 1 January 2024.
The Retail Banking Review set out a wide range of recommendations to improve the sector and customers' experiences. Each recommendation identified the body or bodies responsible for delivery of that recommendation and, where appropriate, contain timelines for delivery of the recommendations.
The implementation of the recommendations that are directed at the Banking Division in my Department were embedded in the annual business plan. My Department will, therefore, continue to liaise with the Central Bank on the on-going management and operation of the CCR, including its fee structure and reporting thresholds.
The Central Bank has committed to keeping the fee structure under review after a period of operation and, in light of actual usage or other relevant developments or enhancements to the CCR. However the Central Bank has also indicated that it is worth noting that there is no difference in the information provided to a CIP having regard to the credit product type or loan application sought, as a comprehensive credit report is provided on each occasion.
160. Deputy Marian Harkin asked the Minister for Finance the number of full-time equivalents working in the Registry of Credit Unions of the Central Bank of Ireland in each of the years 2011 to 2024, in tabular form. [30569/24]
View answerThe figures for Full Time Equivalents (FTE) staff in the Registry of Credit Unions (the Registry) in each of the years 2011 to 2024 are set out below.
|
Year |
FTE |
|
2011 (Dec) |
39.8 |
|
2012 (Dec) |
57.8 |
|
2013 (Dec) |
57.8 |
|
2014 (Dec) |
57.8 |
|
2015 (Dec) |
58 |
|
2016 (Dec) |
62 |
|
2017 (Dec) |
63 |
|
2018 (Dec) |
58 |
|
2019 (Dec) |
54.2 |
|
2020 (Dec) |
52.3 |
|
2021 (Dec) |
43.6 |
|
2022 (Dec) |
38.1 |
|
2023 (Dec) |
42.3 |
|
2024 (May) |
38.3 |
In complement to the FTE staff listed above, the Registry has access, when needed, to resources in specialist areas across the Central Bank such as analytics and IT, as well as support from other Divisions including the Legal Division and Enforcement Division.
161. Deputy Marian Harkin asked the Minister for Finance his views on the disincentive for credit unions to hold Government debt, as the reserve requirements in regulation 4(1) of Central Bank Statutory Instrument No. 1 of 2016 applies to Irish Government debt, but retail banks holding government debt is risk weighted at zero, as per article 114(4) of regulation No. 575 of 2013 (Capital Requirements Regulation). [30570/24]
View answerCredit unions are subject to minimum regulatory reserve requirements under Section 45 of the Credit Union Act, 1997 (the 1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) 2016 (the 2016 Regulations). Regulation 4(1) of the 2016 Regulations provides that:
Subject to paragraph (2), a credit union shall establish and maintain a minimum regulatory reserve requirement of at least 10 per cent of the assets of the credit union.
The reserve requirement for credit unions is calculated on a non-risk weighted, leverage ratio basis. This is a reflection of a number of factors including: available sources of reserves (retained earnings only); the need for individual credit unions to have the capacity to absorb potential losses in absolute terms and the non-complex business model currently operated by Irish credit unions.
Credit unions are not subject to additional capital buffer requirements, such as the Countercyclical Capital Buffer, that would typically apply as part of a risk weighted capital approach.
In the recently published ICURN Peer Review Report the Central Bank note that it remains "of the view that there is no rationale to change to a risk weighted approach (to potentially include various capital buffers, such as a countercyclical capital buffer) given the current asset mix of Irish credit unions, the nature of the business model and indeed the costs associated with implementation for credit unions".
Credit unions are expected to operate with a level of reserves above the 10% regulatory reserve requirement. It is for the board of directors of each credit union to decide on the amount of reserves to hold in excess of the minimum requirement having taken prudent account of the scale and complexity of the credit union’s business, risk profile and prevailing market conditions.
Overall the average total realised reserves (including regulatory reserves) held by credit unions at 31 March 2024 amounted to 16.3% of total assets.
The investment decisions made by a credit union are determined by a range of factors including but not limited to; return, risk, term. The reserve regulation 4(1) of Central Bank Statutory Instrument No. 1 of 2016 acts as neither an incentive, or disincentive to this independent decision making process.
162. Deputy Pádraig O'Sullivan asked the Minister for Finance if he can advise on a case (details supplied); and if he will make a statement on the matter. [30588/24]
View answerI assume the Deputy is referring to the relief from Stamp Duty that is provided for by section 81AA of the Stamp Duties Consolidation Act 1999. Section 81AA provides for relief from Stamp Duty in respect of transfers of agricultural land to individuals who come within the definition of “young trained farmer” on the date the deed transferring the land is executed, subject to certain other conditions being met.
The policy intent of the relief is to encourage younger generations of farmers with agricultural qualifications to pursue farming. This is reflected in the qualifying conditions of the relief, which require that the individual acquiring the land (the “transferee”):
• is under 35 years of age on the date of execution of the deed of transfer,
• holds an approved agricultural qualification,
• intends to spend not less than 50% of their normal working time farming the land for a period of not less than 5 years from the date the land is transferred,
• intends to retain ownership of that land for a period of at least 5 years from the date the land is transferred,
• submits a business plan to Teagasc before the execution of the instrument concerned, and
• is a microenterprise or small enterprise (as defined in Commission Regulation (EU) 2022/2472 of 14 December 2022 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union).
Detailed guidelines on the application of the above-mentioned conditions are set out on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-81aa-transfers-of-land-to-young-trained-farmers.pdf.
The relief will be available where the land is leased back to the person the transferee bought the land from, or where the transferee goes into partnership with that person, provided that all of the qualifying conditions are met. I am advised by Revenue that it accepts that the condition that the transferee intends to spend at least 50% of their normal working time farming the land will be satisfied if the transferee intends to spend at least 50% of their normal working time farming the land as an employee of a lessee of the land or via a partnership.
For the relief to apply in the case of farming activities carried out through a company, the transferee must be the main shareholder and working director of the company and must farm the land on behalf of the company. However, where there is an intention to lease the land back to the person the transferee bought the land from or to go into partnership with that person, Revenue would expect to see this clearly reflected in the business plan that is submitted to Teagasc before the land is transferred.
163. Deputy Michael Ring asked the Minister for Finance the number of full time and part time personnel employed at locations (details supplied) who hold certain powers, for 2020, 2021, 2022, 2023 and up to 30 June 2024; and if he will make a statement on the matter. [30643/24]
View answer164. Deputy Michael Ring asked the Minister for Finance to provide details of the number of full-time and part-time officers employed at locations (details supplied), for 2020, 2021, 2022, 2023 and up to 30 June 2024; and if he will make a statement on the matter. [30655/24]
View answer165. Deputy Michael Ring asked the Minister for Finance to provide details of the number full-time and part-time officers employed at locations (details supplied), for 2020, 2021, 2022, 2023 and up to 30 June 2024; and if he will make a statement on the matter. [30656/24]
View answer166. Deputy Michael Ring asked the Minister for Finance when a full-time unit will be assigned to a location (details supplied); and if he will make a statement on the matter. [30658/24]
View answerI propose to take Questions Nos. 163 to 166, inclusive, together.
I am informed that Revenue has over 500 staff assigned across our ports and airports, working on a 24/7 basis where relevant. Such staff are involved in a range of trade facilitation and enforcement duties. Revenue’s approach involves the use of analytics and detection technologies and ensuring the optimum deployment of resources on a risk-focused basis.
I understand that operational requirements and arrangements regarding the deployment and use of detection technology and resources, including x-ray scanners and detector dog teams, are kept under regular review by Revenue having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs.
I am advised that Revenue enforcement teams based in Castlebar and Sligo, including detector dog teams, are deployed to Ireland West Airport Knock (IWAK) on a regular, risk-assessed basis. All flights, both inbound and outbound, are liable to be controlled by enforcement officers in attendance.
Details for the total number of full and part-time staff assigned in Castlebar, Sligo & Knock and officers holding authorisations for 2020 to 1 June 2024 is outlined in the tables below:
*2024 data is correct as of 1 June and is the latest available.
Full time (Headcount):
|
Castlebar |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Total Staff Assigned |
114 |
113 |
112 |
134 |
122 |
|
Sligo (Inc Knock) |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Total Staff Assigned |
55 |
56 |
60 |
61 |
59 |
Part time (Headcount):
|
Castlebar |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Total Staff Assigned |
26 |
23 |
24 |
17 |
18 |
|
Sligo (Inc Knock) |
2020 |
2021 |
2022 |
2023 |
2024 |
|
Total Staff Assigned |
11 |
11 |
8 |
6 |
6 |
The below table shows the number of staff holding authorisations in each year per location.
|
PQ Ref |
Question |
2020 |
2021 |
2022 |
2023 |
2024 |
|
30656/24 |
Customs & Excise Officers in Castlebar; Ireland West Airport Knock and Sligo who hold powers under Regulation and European Communities (Instrastat) Regulations 1993 |
72 |
75 |
89 |
112 |
113 |
|
30655/24 |
Customs & Excise Officers in Castlebar; Ireland West Airport Knock and Sligo who hold the following powers under Customs & Excise Section 62 Finance Act 1993, Section 134, 135, 136, 138, 139, 140 and 141 |
72 |
75 |
88 |
112 |
113 |
|
30643/24 |
Customs & Excise Officers employed in Castlebar; Ireland West Airport Knock and Sligo who hold the following powers Section 851, 903, 904, 905, 961 and 962 of the Taxes Consolidation Act 1997 |
71 |
74 |
89 |
112 |
113 |
This Government has been consistent in its strong support for ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration and I remain open to considering any proposals from Revenue for additional resources that will support its work.
167. Deputy Seán Canney asked the Minister for Finance if he will consider the introduction of individual saving accounts which will give savers the benefit of tax-free savings, flexible contributions and diverse investment options and afford proper retirement planning; and if he will make a statement on the matter. [30760/24]
View answerI note the Deputy's query in relation to individual savings accounts and investments and whether any changes are being considered in this regard.
Last year, on 6 April 2023, former Minister for Finance, Mr. Michael McGrath T.D. published the Terms of Reference for a review of Ireland’s funds sector - ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. The review is wide ranging and looking at a range of issues relevant to the funds sector, taking into account the recommendations in this area of the Commission on Taxation and Welfare 2022 report, Foundations for the Future.
As per the terms of reference, the Review team will report to me this Summer and I look forward to considering its findings at that point. On that basis it would not be appropriate to presuppose any outcomes of the review at this time
As with all areas of tax policy, the taxation of savings and investments will be kept under review throughout the annual budgetary and Finance Bill process.
168. Deputy Fergus O'Dowd asked the Minister for Finance if he will urgently intervene and seek consultation on the impending closure of both the Kilsaran and Clogherhead credit unions in County Louth, which will impact greatly upon the relevant communities; and if he will make a statement on the matter. [30774/24]
View answerI thank the Deputy for raising this issue with me.
I am disappointed with the news that these branches are closing, and the impact this could have on the local communities of Kilsaran and Clogherhead in County Louth.
However, as the Deputy is aware, as Minister for Finance, I have no legislative basis to intervene in any commercial decisions made by any credit union in the State.
Such decisions including the management of branch networks, are the sole responsibility of the board of the respective credit union, which must be run on an independent and commercial basis.
I trust this clarifies matters for the Deputy.
169. Deputy Michael Ring asked the Minister for Finance the reason a publication (details supplied) is not included in a zero rate of VAT in Ireland; and if he will make a statement on the matter. [30811/24]
View answerMagazines are included within the term ‘periodicals’. This includes weekly magazines and sectoral publications covering sport, entertainment, fashion, health, etc. that are published regularly or occasionally.
Point (6) of Annex III of the VAT Directive allows for the application of a reduced rate of VAT or zero-rate to periodicals, including magazines. However, the VAT Directive does not distinguish between types of periodicals. A zero-rating could not be introduced in respect of ‘magazines’ only, instead it would have to cover all periodicals regardless of the type and content of the publication. The estimated annual cost of such a measure is €15m.
It should also be noted that periodicals supplied in both physical and digital formats already benefit from the second reduced rate of VAT of 9%.
170. Deputy Réada Cronin asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to provide the details for the complex at Castletown (details supplied). [30542/24]
View answerI will respond Directly to the Deputy in this regard.
