Written answers

Tuesday, 6 July 2021

Department of Housing, Planning, and Local Government

Departmental Data

Photo of Noel GrealishNoel Grealish (Galway West, Independent)
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226. To ask the Minister for Housing, Planning, and Local Government the amount of interest his Department has been charged for savings or other funds on deposit in Irish banks since negative interest rates were introduced by year; and if he will make a statement on the matter. [35936/21]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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My Department seeks, where possible, to minimise the amount of negative interest it incurs from commercial banks and the Central Bank of Ireland while processing over €5.7 billion in annual payments through the Vote and Local Government Fund.

The table below sets out details in relation to negative interest incurred by my Department in the Vote and the Local Government Fund in the years 2018 up 31 May 2021.

2018 2019 2020 31 May 2021 Total
Vote
Commercial Banks €302 - - - €302
Local Government Fund (LGF)
Commercial Banks €850 €2,580 €1 €212 €3,643
Central Bank of Ireland 1 €19,347 €10,947 €17,784 €13,244 €61,322
LGF Sub-Total €20,197 €13,527 €17,785 €13,456 €64,965
Total €20,499 €13,527 €17,785 €13,456 €65,267

1The Revenue Commissioners collect Local Property Tax (LPT) and there is an arrangement in place for the transfer of LPT to a nominated LGF Account in the Central Bank held on behalf of the Department by the National Treasury Management Agency (NTMA), which is 0% interest bearing.

However, a small residue of the LPT receipts are retained by the Revenue Commissioners in the Central Bank to cover LPT refunds etc. This account is an interest bearing account, which currently attracts negative interest and accounts for the €61,322 negative interest charged by the Central Bank for the period 2018 up to 31 May 2021. It should be noted that €1.741 billion in LPT receipts were transferred through the Central Bank during the period on question.

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