Results 26,021-26,040 of 33,175 for speaker:Paschal Donohoe

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: I cannot give such an assurance because the conditionality would depend on the economic circumstances at the particular point in time and the nature of the crisis. I am therefore not in a position to give the Deputy a blanket assurance as to what the conditions could be.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: Yes, but the people who would be involved in making the decisions in this regard would be very much aware of that as a risk. We are talking about a member state government and a finance minister negotiating to secure additional funding in a time of crisis. In such a case the negotiation to which I referred earlier would look to strike the best possible balance between getting the member...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: I never said that would happen. I said this was a negotiated outcome and other countries would be involved and I pointed to the acknowledgement that there is conditionality. I never, in any of my statements, said this would be guided by altruism alone and purely the interests of one country. This is a negotiated outcome, as I have said repeatedly in my presentation. The reason is that...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: I will get a note on that now. I ask the committee to bear with me. The conditionality involved, at a bare minimum, is the obvious point that the SRF, including the share of the ESM funding the SRF, is funded by contributions banks make. That is a profound difference from where we were a decade ago. However, if the Deputy takes me through his other questions, I will see-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: If there is any facet of it that I need to share with the Deputy, it will come to me in a moment. However, the key feature of how we would deal with banks is that all of this would happen after bondholders had been bailed in and in fairness to the Deputy, he made that point earlier. I ask him to bear with me for a moment.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: I did, and I believe this is a good, balanced outcome for all of us. The progress we made in ensuring the SRF and ESM are funded by banks rather than the taxpayer was a massive step forward. The key piece of conditionality in this is, as I explained, that the money that goes into ESM - the share of the ESM that is relevant to this - and to the SRF is a contribution from the banking sector....

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: It is there. I will explain why. It is there because the bondholders at this point will be bearing a cost that they have not borne before. That is the difference. The Deputy is wrong in what he says about the taxpayer funding the operation of the ESM. In these situations it will also be banks through lending to the ESM that will be contributing to the operation of the ESM in backing up...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: No, the ESM will lend to the SRF. The ESM will also-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: No, to be clear, the ESM will be putting funding into the SRF but in these situations the ESM would also seek to access funding and loans from the banking sector.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: Yes, that is correct.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: In situations such as that, the ESM would play a role and would also use its funds to do that. In those situations, the ESM will also look for funding from the banking sector itself. The Deputy asked me earlier about the contribution that Ireland will make to the operation of this. Over time, it will be €815 million.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: To be completely clear, in that situation loans from the backstop itself are repaid by contributions from the European banking sector. In addition to repayments that are funded by banking sector contributions, the single resolution mechanism regulation sets out a series of conditions which limit the risk to which the fund, and thereby the backstop, could be exposed. A contribution from the...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: That would only happen if every one of the safeguards before getting to that point did not work.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021: Committee Stage (25 Nov 2021)

Paschal Donohoe: Sorry, the Deputy is cutting over me. I did not at any point cut over the Deputy. That would only happen if every other safeguard before that was not big enough. Does the Deputy accept that?

Written Answers — Department of Finance: Tax Code (14 Dec 2021)

Paschal Donohoe: The VAT treatment of the supply of goods and services is subject to the requirements of the EU VAT Directive, with which Irish VAT law must comply. Exemptions from VAT for certain activities in the public interest are set out in Chapter 2 of Title IX of the Directive. These provisions are transposed into Irish legislation in Part 1, Schedule 1, VAT Consolidation Act 2010. Paragraph 2(5) of...

Written Answers — Department of Finance: Covid-19 Pandemic Supports (14 Dec 2021)

Paschal Donohoe: I propose to take Questions Nos. 201, 205, 207, 211, 218 and 221 together. The objective of the Employment Wage Subsidy Scheme (EWSS) is to support employment and maintain the link between the employer and employee insofar as is possible. The EWSS has been a key component of the Government’s response to the Covid-19 crisis. It is an economy-wide scheme that operates across all sectors....

Written Answers — Department of Finance: Departmental Reviews (14 Dec 2021)

Paschal Donohoe: The Retail Banking Review is being undertaken directly by the Department of Finance, which has assigned a team in its Banking Division to the task. The team will consist of seven officials, To date, five Department officials and one of two officials being seconded from the Central Bank of Ireland have been assigned. The gender breakdown of the six officials is that two are female and four...

Written Answers — Department of Finance: Tax Data (14 Dec 2021)

Paschal Donohoe: I propose to take Questions Nos. 203 and 204 together. Finance Act 2000 introduced the gross roll-up taxation regime for investments in domestic funds (in section 58) and for investments in life policies (in section 53). While Finance Act 1990 had introduced anti-avoidance rules that are known as the “offshore funds” regime, Finance Act 2001 (section 72) amended the offshore...

Written Answers — Department of Finance: Covid-19 Pandemic Supports (14 Dec 2021)

Paschal Donohoe: Section 28B of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides for the Employment Wage Subsidy Scheme (EWSS) which is an economy-wide enterprise support for eligible businesses. EWSS provides a subsidy to qualifying employers, based on the number of qualifying employees on the payroll. As an economy-wide support, the EWSS has played a central role in supporting...

Written Answers — Department of Finance: Tax Code (14 Dec 2021)

Paschal Donohoe: I am aware of the report referred to by the Deputy in relation to an assessment by ISME of the effect of state policies on moderate to low income earners. The report suggests policy changes in the following four areas: 1. Adjusting PRSI to eliminate the very high marginal PRSI rate on additional income in the PRSI Transition Zone from €18,304 to €22,048 per annum. 2....