Results 47,841-47,860 of 49,836 for speaker:Stephen Donnelly

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: Normally in a regulated market the regulator would sit down with a company and work out a reasonable return on the invested capital based on the characteristics of the market and would then work out the regulated price of the service. This is exactly the same. I would expect to see an official from the Central Bank sitting down with a company and saying as it is lending €50 million,...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: The Central Bank requires a commercial justification. There is only one justification, the return on invested capital, which is the only game in town. The margin on the amount of money lent is the return on invested capital. If the team at the Central Bank is not looking at the return on invested capital, how is it determining there is a reasonable commercial case to be made for the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: Is it possible that the Central Bank has regulated prices to companies that are making returns on invested capital in excess of 50%?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: Profitability based on turnover is not relevant. What is relevant is profitability based on invested capital. That is the only metric that is relevant. If the team in the Central Bank does not know what returns they are getting on invested capital, how can it assess the commercial case for a regulated price, which is the interest rate they can charge?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: The key words are "super normal profits." What data is Mr. Sheridan using to determine, if it is not the return on invested capital, whether something is a "super normal profit"?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: What metrics are being used?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: At what point does the Central Bank arrive at a decision that a company is earning a "super normal profit"? What is the maximum profit considered reasonable by the Central Bank?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: Why?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: That is not satisfactory. This is a policy question. Mr. Sheridan states the Cental Bank team makes a decision based on "super normal profits." It is not a firm by firm issue; it is either a "super normal profits" issue or it is not. Will Mr. Sheridan give me an example of what he believes to be a "super normal profit"?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: Of what?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: Let us say they are lending €50 million. Are they making a profit of €5 million? Would that be correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: How many increases in rates have there been in recent years? If the team does not have the exact number, a ballpark figure is acceptable. Is it zero, about five or 50?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Report on Licensed Moneylending Industry: Central Bank of Ireland (29 Jan 2014)

Stephen Donnelly: None of the maximum figures has been increased in recent years?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: I have a procedural question about these Estimates. My understanding was that we had already discussed the main Estimates, these being revisions thereto. In other words, the main Estimates, dealing with the large allocations of moneys, have already been voted through. Am I wrong in this and are we concerned today with voting through the total spend for 2014?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: I appreciate the clarification, but it is still not entirely clear to me precisely what we are about. I understand there is a €2 million increase in the allocation for the OPW in the Revised Estimates. Has the sub-committee already discussed the main Estimates and are we concerned only with the revisions today?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: To be absolutely clear, the total allocation of €354 million, an increase on the original figure of €352 million, has not been discussed heretofore by the sub-committee?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: We have not discussed the overall Estimate of €354 million with the Minister of State.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: My next question sounds like it is loaded, but is not meant to be. Is this the first occasion on which we are discussing the 2014 OPW spend, after it has been voted through by the Oireachtas?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: That clarification is helpful. The Minister of State has been pushing for improvements in public sector procurement. Will he indicate what quantum of savings the OPW has managed to achieve by moving to better practice in procurement?

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform: Estimates for Public Services 2014
Vote 13 - Office of Public Works (Revised) (29 Jan 2014)

Stephen Donnelly: My question is not how much it costs to engage in procurement but what savings are we seeing as a consequence of following better practice in this regard. In the areas we are discussing such as procurement of materials, goods and services for building schools, Garda stations and so on, what quantum of savings has been achieved by way of improved procurement practice?