Summer Economic Statement 2018

Summer Economic Statement 2018 Chartpack

The purpose of the Home Building Finance Ireland Bill is to provide for the establishment of a company called Home Building Finance Ireland (HBFI) to increase the availability of debt funding  for residential development in the State. HBFI will provide financing to developers seeking to build viable residential development projects in Ireland on commercial, market equivalent terms and conditions.

The Bill facilitates funding of HBFI from resources currently held by the Irish Strategic Investment Fund (ISIF), the granting of the necessary power to the National Treasury Management Agency (NTMA) to provide staff and services to HBFI on a cost recoverable basis, the granting of specific powers to HBFI to enable it to carry on the business of residential development finance, and ensures appropriate accountability for HBFI.

 

Home Building Finance Ireland Bill 2018

Home Building Finance Ireland Bill 2018 – Regulatory Impact Analysis

Home Building Finance Ireland Bill 2018 – Explanatory Memo

Credit unions are subject to a number of levies and charges for different purposes, the majority of which are administered by the Central Bank. The levies administered by the Central Bank are as follows in order of materiality:

  • Deposit Guarantee Scheme (“DGS”)
  • Resolution Fund levy
  • Stabilisation Scheme Levy
  • Industry Funding Levy

Charges related to the DGS, which is an industry-wide guarantee scheme established under Irish and EU law for all deposits of banks and credit unions authorised by the Central Bank account for approximately 50% of the levies and charges administered by the Central Bank on the credit union sector.

Levies such as the Savings Protection Scheme Levy, the Financial Services & Pensions Ombudsman Levy and the Investor Compensation Scheme Levy are not collected by the Central Bank.

Levies and charges have generally risen in absolute terms as the sector has grown and as income has fallen. Each of these charges are an expense in the credit union’s accounts.

This Information Note provides details on the purpose of individual levies and charges for the credit union sector and the statutory basis for each, where relevant.

Information Note – Credit Union Levies & Charges       Revised 12th June

 

 

 

Mr. Paschal Donohoe T.D., Minister for Finance and Public Expenditure and Reform, has appointed Indecon international economic consultants to undertake an independent review of issues relating to a tax on vacant residential property and to inform government policy in this area. 

Background

Section 86 of Finance Act 2017 provides that:

The Minister for Finance shall, not later than 9 months after the passing of this Act, prepare and lay before Dáil Éireann a report on the issues relating to making provision in law for a tax on vacant residential property, the administration and implementation of such a tax, the availability of reliable baseline data and the estimated annual revenue from such a tax.”

The objective of a vacant property tax would be to increase the supply of homes for rent or purchase to meet demand rather than increasing tax revenues. In that context it is important that there is a sound understanding of the quantity, locations and characteristics of long term vacant dwellings, and the reasons why they are currently vacant.

Submissions

Interested parties are invited to make written submissions regarding the following issues.  In summary, the key issues include:

Rationale for this form of taxation

– Discussion of the likely behavioural response to the tax, based on theoretical and empirical investigation

– Identification of the types of vacant residential property, reasons why they are vacant and length of vacancy

– At what rate should such tax be levied, to provide the stimulus necessary to bring vacant properties back into use?

Available baseline data to determine the tax base.

– What are the appropriate data sources for creating a database for vacant residential property?

– How could an accurate register of vacant properties be effectively maintained? 

Administrative requirements for the implementation and operation of such a tax.

– What criteria should be used to identify vacant properties for such a tax and how such a register be maintained?

– The long-term viability of any revenues collected by such a tax

– Whether the revenue collected is likely to cover administration costs of implementation

– Any other considerations for placing a charge on vacant residential property.

Alternative options and other dimensions.

– Are there other policy tools better suited to addressing vacant properties?

– How might the proposed measure interact with other aspects of the tax code and current incentives?

– Are there any opportunity costs or unintended consequences that may need to be considered?

– What is the appropriateness or otherwise of the proposed measure?

– What vacant property taxes currently operate in other jurisdictions?

– Assessment of the relevance, the cost, the impact and the efficiency of any proposed tax on vacant properties.

– Are there any other factors that may constrain the implementation of any such a tax?

– Would the proposed tax effectively and efficiently deliver the policy objective of bringing vacant residential property into use in order to add to the supply of residential properties in areas where there are the greatest pressures?

– Will the amount of vacant properties remain at current levels, or is the issue likely to be resolved through other market measures and incentives?

– Are there any anti-avoidance rules that would be necessary should the tax be implemented?

– Any other areas/aspects that may require further consideration?  

Interested parties are invited to make submissions by email or post on the above matter to the Department of Finance and to Indecon at the contacts below. All submissions to be received by 29 June 2018.

Brian O’Connell

Senior Economic Consultant

E-mail:  boconnell@indecon.ie or by post to:

 

Indecon International Economic Consultants

Indecon House

4 Fitzwilliam Place

Dublin 2

Matt Jones

Department of Finance

Email: Matt.Jones@finance.gov.ie or by post to:

 

Tax Policy Division

Department of Finance

Government Buildings

Upper Merrion Street

Dublin 2

 

When responding, please indicate whether you are contributing to the consultation process as a professional adviser, representative body, corporate body or member of the public.

 

Freedom of Information

Responses to this consultation are subject to the provisions of the Freedom of Information Acts. Parties should also note that responses to the consultation may be published on the website of the Department of Finance.

Fiscal data April 2018 publication

IBRC progress update report year ended 31 December 2017

Executive Board Minutes Q1 2018

Monthly Economic Bulletin- May 2018

Department of Finance Quality Customer Service Charter and Action Plan – May 2018

Forecast Evaluation Report

Consultation Period 

The consultation period will run from 14 th January 2015 to 8th April 2015, a period of 12 weeks. Any submissions received after this date may not be considered.

How to Respond
The preferred means of response is by email to: KDBconsultation@finance.gov.ie

Alternatively, you may respond by post to:

The Knowledge Development Box – Public Consultation
Tax Policy Division
Department of Finance
Government Buildings
Upper Merrion Street
Dublin 2

Consultation Paper

Submissions received

Response to Budgetary Oversight Committee

IFS2020 Q1 2018 Progress Report

Report on Administration of the Insurance Compensation Fund 2017

 

The Minister for Finance, Pascal Donohoe TD, invites interested parties to make submissions in relation to the feasibility of an insurance claim-by-claim register.
The objective of this consultation is to seek the views of stakeholders, including insurance undertakings and intermediaries, consumers, other state bodies and interest groups, on what the added value of a claim-by-claim register would be in addition to the National Claims Information Database, which is currently being developed by the Department of Finance and the Central Bank of Ireland, and the Insurance Fraud Database, which is currently being developed by the Department of Justice.

In particular, the Minister is keen to try and identify what form a claim-by-claim register could take, as there are a diverse range of views in relation to this matter, as well as a number of considerations such as data protection which would need to be satisfactorily taken account of.

The consultation period will run until 22 June 2018. Any submissions received after this date may not be considered.

Consultation Paper on Insurance Claim-by-Claim Register

 

Mr. Paschal Donohoe T.D., Minister for Finance and Public Expenditure and Reform, has appointed Indecon international economic consultants to undertake a review of the Employment and Investment Incentive (EII) and the Start-Up Refunds for Entrepreneurs (SURE) scheme. The purpose of the review is to assess the effectiveness and efficiency of the EII and SURE incentives and to inform government policy in this area. In summary, the terms of reference for the review include:

  • To what extent do the objectives of the EII and SURE remain valid?
  • What significant changes have taken place in the operating environment of the incentives since the previous review in 2014, and what are the implications of these developments for the ongoing validity of the objectives of both schemes?
  • To what extent are these objectives being met?
  • Are the schemes addressing the ‘market failures’ that they were introduced to address and are there any market failures that are not being addressed fully?
  • Examination of cost-effectiveness of schemes:
  • Are the schemes cost-effective in terms of economic benefits they deliver relative to their exchequer costs in terms of tax revenues foregone?
  • Examination of alternative options which may exist for the provision of state support:
  • Is it appropriate to continue to address, in whole or in part, the identified market failures through the tax system, and are there other ways in which these market failures could be addressed by the State, taking into account State Aid constraints?
  • What are the effects/implications of the EU General Block Exemption Regulations (GBER) for State Aid on the EII and SURE incentives?
  • How do the EII and SURE incentives compare with similar incentives in other EU Member States?
  • Do the incentives, as currently designed, provide a platform for the effective operation of the reliefs?
  • Are there ways in which the design of the incentives could be enhanced?

EII Review Consultation

Terms of Reference Review EII and SURE

 

Interested persons are invited to make submissions addressing some or all of the above points by email to the Department of Finance at the contacts below. All submissions to be received by 5pm on Monday 28th May 2018.

 

Email: EIISURE2018@finance.gov.ie

 

or by post to:

 

EIISURE Review

C/O Patrick Brennan, Tax Policy Division

Department of Finance

Government Buildings

Upper Merrion Street

Dublin 2

 

When responding, please indicate whether you are contributing to the consultation process as an investor, a company that has/will use EII or SURE, a tax advisor, a financial advisor, a representative body, or a member of the public. 

Freedom of Information 

Responses to this consultation are subject to the provisions of the Freedom of Information Acts. Parties should also note that responses to the consultation may be published on the website of the Department of Finance.

5th Progress Update Q1 2018

second motor insurance key info report may 2018

Prompt Payments Q1 2018

Globalisation presents significant challenges in terms of measuring economic
activity. While this is the case in most advanced economies, the issues are
particularly acute in an Irish context, given the large multinational footprint.

For policy-makers, there are additional challenges, most notably related to
interpreting the real-time information embedded in standard, internationallyrecognised
metrics such as Gross Domestic Product and Gross National Income.
Movements in these aggregates have become increasingly disconnected from
actual trends in living standards in Ireland.

New Irish-specific measures of activity – most notably ‘modified Gross National
Income’ – attempt to control for (part of) the impact of globalisation on Irish
macro-economic statistics. While this is an important step forward, the data are
not yet available in ‘real’ terms nor at a sufficiently high frequency (the data are
currently published on an annual basis).

In these circumstances, it is important that short-term cyclical analysis is
cognisant of a wide suite of indicators: no single indicator provides a fully
comprehensive overview of ‘true’ economic trends at present. The Department
of Finance will continue to monitor all relevant metrics in order to fulfil its role in
providing economic and budget advice to the Minister.

Finally, it must be stressed that, notwithstanding statistical innovations, Ireland’s
legal obligations (in the area of fiscal rules, for instance) are assessed on the
internationally-agreed methodologies and there is little prospect of any change
to this.

 

GDP and Modified GNI – Explanatory Note, May 2018


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