Results 3,021-3,040 of 27,019 for speaker:Michael Noonan

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: I am advised that the 70% marker includes all the large companies that trade in the State. However, it is also part of the section that the 70% is averaged over three years. Therefore the possibility of somebody getting caught on the basis of one-year figures would not arise. A Northern Ireland company will not have access to liquidation provisions if its business model was not...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Section 5 repeals section 4 of the Insurance Act 1964 which is obsolete as it relates to a specific insolvency in 1964, namely the insolvency of the Equitable Insurance Company Limited. This provision allowed the Minister for Finance to provide a grant of £30,000 to the fund out of moneys provided by the Houses of the Oireachtas under section 3 of the existing legislation, to the liquidator...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Section 6 is a technical provision that makes a cross-reference change to section 5 of the Insurance Act 1964, consequential on the amendments made in this Bill.

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Section 7 replaces section 6 of the Insurance Act 1964. The section sets out the conditions for the levying of insurance companies in relation to the Insurance Compensation Fund. The provision sets out a number of elements including the following - the Central Bank continues to be responsible for assessing the fund from time to time to see if it needs financial support. In addition, it...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: I am not proposing any changes in the stamp duty but all such issues are budgetary issues and it would not be done in mid-year in any case. Subsection (1) makes the Central Bank responsible for assessing the fund from time to time to see if it needs financial support. It can determine the appropriate contribution to be paid to the fund by each insurer up to an amount not exceeding 2% of the...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: There have been levies before so the industry will be familiar with the Insurance Compensation Fund and the 1964 legislation. I think the levies lapsed some time in the early 1990s so the companies would be familiar with the situation. The main requirement of the domestic industry is that there should be a level playing field between companies which operate in the Irish market on a...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: The Central Bank organises it and the Revenue collects it from companies on their book of particular businesses and it is passed on by the company to the Revenue and it is passed in turn to the insurance compensation fund on the direction of the Central Bank.

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: The way the levy operates, it operates on the books; the Deputy can take it that it will be passed on.

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Legally, they could absorb it.

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: The Exchequer will have to put in money in the first instance. When the Bill is signed there will be three months notice. Money is required from now on. It is like a loan from the Exchequer. In terms of the general Government deficit, it is treated as a financial transaction. The State will put money in and will get an interest rate on it. The State will get its money back as the levy...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: We are putting in €460 million, a sum of €280 million this year and €180 million next year because we think many of the claims are front loaded. We will receive the appropriate commercial rate of interest on this investment and members can take it that will cover the cost of State borrowing. These things vary. On the CoCos we put into the banking system for recapitalisation, we will...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: It depends on the level of draw down. The levy will produce €65 million a year and there is €40 million in the fund at present. If we put in €280 million this year and €180 million next year, the Deputy can do the sum, but it will be a while before we get the money back.

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Section 8 is a technical amendment. The purpose of this provision is to repeal section 31 of the Insurance Compensation Fund of Insurance Act 1989, which made amendments to section 3 of the 1964 Act. Those amendments are now obsolete as they are superseded by section 4 of this Bill. This repeal will remove any ambiguity which might arise in the event that section 31 were to remain on the...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Section 9 provides the saving mechanism and to ensure that any liquidations or administrations commenced before this Act comes into effect will continue to be subject to the old rules. This is a standard convention that a company under administration is protected under the rules that applied when the company went into administration. The effect of this is to ensure that QIL, Quinn Insurance...

Insurance (Amendment) Bill 2011 [Seanad]: Committee and Remaining Stages (28 Sep 2011)

Michael Noonan: Section 10 sets out the Short Title of the Act, as the Insurance (Amendment) Act 2011. This is a standard provision in all Acts.

Written Answers — Tax Code: Tax Code (28 Sep 2011)

Michael Noonan: The Universal Social Charge, which came into effect on 1 January 2011, is a charge payable on gross income subject to certain exemptions. All individuals are liable to pay the Universal Social Charge if their gross income exceeds the threshold of €4,004 per annum. It is not levied on payments from the Department of Social Protection. I am advised by the Revenue Commissioners that the...

Written Answers — State Banking Sector: State Banking Sector (28 Sep 2011)

Michael Noonan: As the Deputy is aware, the day to day running of a bank's operations is a matter for the Board of the relevant bank. Commercial decisions such as the fixing of interest rates etc are matters in which I have no direct function. The rates of interest charged on mortgages are normally determined by the terms of the mortgage agreement. If a bank or mortgage provider unilaterally changes the...

Written Answers — Tax Yield: Tax Yield (28 Sep 2011)

Michael Noonan: The information the Deputy has requested is provided in the following table. 2010 2011 (f) 2012 (f) 2013 (f) 2014 (f) Tax/GNP Ratio 25% 28% 29% 30% 31% The tax projections for the years 2011-2014 are those technical forecasts set out in the April Stability Programme Update (SPU). The GNP figures upon which the ratios are based, are also taken from the time of the SPU. Revised economic and...

Written Answers — National Debt: National Debt (28 Sep 2011)

Michael Noonan: The information the Deputy requests is provided in the following tables, which have been compiled by the National Treasury Management Agency. National Debt 2008-2010: (€m) 2008 2009 2010 End-Q1 37,919 54,245 79,082 End-Q2 43,157 65,278 83,984 End-Q3 46,962 70,754 88,636 End-Q4 50,398 75,152 93,445 National Debt 2011: (€m) 2011 End-January 94,396 End-February 95,851...

Written Answers — Bank Guarantee Scheme: Bank Guarantee Scheme (28 Sep 2011)

Michael Noonan: I propose to take Questions Nos. 57 to 59, inclusive, together. Promissory notes were provided as consideration for the capital introduced by the State into Anglo. Under the terms of the Anglo (including INBS) promissory notes the State has an obligation to make annual repayments of €3.1 billion per annum. Furthermore the interest rates on the promissory notes, which were set by reference...