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20170518 Ministers Brief

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20170518 Ministers Brief MIN ISTER’S BRIEF JUNE 2017 Page 1 of 252 Page 2 of 252 MINISTER'S BRIEF JUNE 2017 Page 3 of 252 Contents > Page 4 of 252 1. INTRODUCTION 8 2. BUSINESS [POLICY] PRIORITIES 2017 10 2.1 ECONOMIC & FISCAL DIRECTORATE - BUSINESS PLAN POLICY PRIORITIES 11 2.2 FINANCE AND BANKING DIRECTORATE - BUSINESS PLAN POLICY PRIORITIES 13 GLOSSARY OF INTERNATIONAL INSTITUTIONS/COMMITTEES 15 3. DETAILED BRIEFING 30 3.1 ECONOMIC AND FISCAL DIRECTORATE 31 3.1.2 ECONOMIC DIVISION 32 3.1.2.1 Macroeconomic analysis and forecasting 33 3.1.2.2 Microeconomic analysis underpinning taxation and other policies and sectoral policy economic analysis 39 3.1.2.3 Economic coordination including development and monitoring of economic strategy 44 3.1.2.4 Budgetary/fiscal policy, governance, reporting, coordination and production of Budget; tax revenue forecasting; general government statistics - reporting, forecasting and classification advice 49 3.1.3 TAX DIVISION 55 3.1.3.1 General income tax policy and reform 61 3.1.3.2 Excise duties, customs issues, value added tax, EU and national indirect taxes, and associated tax policy issues 73 3.1.3.3 Capital Taxes and EU State Aid Matters 82 3.1.3.4 International and corporation tax policy 87 3.1.3.5 Tax Administration, Revenue Powers, Local Property Tax, Pension Taxation, Stamp Duty and Tax Appeals 93 3.1.4 EU & INTERNATIONAL DIVISION 99 3.1.4.1 Brexit Unit 100 3.1.4.2 EU-IMF Post Programme Monitoring & Surveillance/ EU Lending instruments & Programme Loans/ European Stability Mechanism Policy, and EU Budget 103 3.1.4.3 EU policy coherence and co-ordination 108 3.1.4.4 International Relations Unit 112 3.1.4.5 Permanent Representation of Ireland to the EU 114 Page 5 of 252 3.2 FINANCE AND BANKING DIRECTORATE 117 3.2.1 BANKING DIVISION 118 3.2.1.1 Policies on mortgage arrears, mortgage regulation, consumer issues SME credit & lending, the Strategic Banking Corporation of Ireland and the Credit Review Office 118 3.2.1.2 Financial Stability, Central Bank, and NTMA policy section 129 3.2.1.3 Policies on EU Banking and Payments 135 3.2.2 FUNDS, INSURANCE MARKETS & PENSIONS DIVISION 141 3.2.2.1 EU and national policy on Financial Markets, Funds Securities and Capital markets union. 141 3.2.2.2 Policy and legislation in relation to Pensions. 147 3.2.2.3 National and EU policy and legislation in relation to Insurance, Anti-money laundering policy and legislation and oversight of the Financial Action Taskforce (FATF) country assessment. 150 3.2.3 SHAREHOLDING AND FINANCIAL ADVISORY DIVISION 160 3.2.3.1 State’s Banking Investments Overview 163 3.2.3.2 State’s shareholding in Allied Irish Banks 166 3.2.3.3 State’s shareholding in Bank of Ireland 170 3.2.3.4 NAMA 173 3.2.3.5 IBRC (in special liquidation) 178 3.2.3.6 State’s shareholding in PTSB 183 3.2.3.7 Credit Union Reform and Strategy 186 3.2.3.8 Management of all legal matters concerning the Shareholding and Financial Advisory Division 195 3.2.3.9 Financial Advisory Services 197 3.2.5 INTERNATIONAL FINANCE DIVISION 199 3.2.5.1 Management of Ireland’s relationship with, and shareholding in, International Financial Institutions and Climate Change 200 3.2.5.2 International Financial Services IFS2020 Strategy, Departmental Risk Management and Compliance Functions – Legislation Amalgamating the Financial Services Ombudsman (FSO) and Pensions Ombudsman (PO) 221 Page 6 of 252 3.3 CORPORATE 228 3.3.1 FACILITIES MANAGEMENT UNIT 229 3.3.2 CORPORATE AFFAIRS 233 3.3.2.1 Management of Governance framework, Integrated Business Planning framework, Bodies under the Aegis, Corporate Communications, ICT and Business Continuity Management, Freedom of Information, Parliamentary Questions, Government Memos, Records Management and Print Room. 233 3.3.3 HUMAN RESOURCES DIVISION 241 3.3.3.1 Leading the Human Resources function in developing and implementing the HR Strategy 241 3.3.4. LEGAL UNIT 247 3.3.5 ACCOUNTANT’S BRANCH/FINANCE UNIT 249 3.3.5.1 Management of the Accountant's Branch/Paymaster General's Office and internal finance and budget management activities 249 Page 7 of 252 1. Introduction For the purposes of day-to-day management the Department is organised into two Directorates as follows: Economic and Fiscal Directorate Finance & Banking Directorate Within each Directorate there are a number of Divisions/Units. Page 8 of 252 1. Economic & Fiscal Directorate The Economic and Fiscal Directorate, which reports to the Secretary General, comprises of: Economic Division John McCarthy Assistant Secretary Tax Division John Hogan Assistant Secretary EU & International Division Nicholas O’Brien Assistant Secretary Corporate Affairs Nicholas O’Brien Assistant Secretary Human Resources Division Niall O’Ceallaigh Principal Officer Facilities Management Unit Gary Tobin Assistant Secretary 2. Finance & Banking Directorate The Finance & Banking Directorate, who reports to the Second Secretary General, comprises of: Banking Division Gary Tobin Assistant Secretary Funds, Insurance Markets & Pension Division Aidan Carrigan Assistant Secretary Shareholding and Financial Advisory Division Des Carville Assistant Secretary International Finance Division Paul Ryan Director Legal Unit Aidan Carrigan Assistant Secretary Finance Unit John Hogan Assistant Secretary Page 9 of 252 2. Business [Policy] Priorities 2017 Page 10 of 252 2.1 Economic & Fiscal Directorate - Business Plan Policy Priorities ECONOMIC DIVISION (John McCarthy) 1. Develop, disseminate and promote Department of Finance view on economic situation and outlook having regard to Brexit, EU & International developments. 2. Provide rigorous economic analysis on fiscal policy stance, taxation options and measures for Budget 2018 3. Enhance research and analytics capability of the Economics Division 4. Prepare Budget Strategy and publish official Annual & CONSOLIDATED STRATEGIC Multi-annual Budgetary Forecasts and Budget 2018 PRIORITIES 5. Monitor fiscal and economic position and advise on 1. Monitor fiscal and economic policy compliance with the fiscal rules 6. Manage transition of Exchequer Section to position having regard to Headquarters. external challenges and advise on policies TAX DIVISION (John Hogan) 2. Integrate results of 1 above 1. Development of Tax Options for Budget 2018 having into SPU, SES and Budget regard to Brexit and other challenges 2. Successful completion of the annual Finance Bill formation process process 3. Successful management of ongoing legal cases 4. Successfully manage EU and International tax dossiers 3. Plan and execute National particularly in relation to CCTB, BEPS and evolving CT Economic Dialogue, TSG fora issues, both domestic and international 5. Manage Central Fund, Vote payment reconciliations and Budget and Finance Bill and Exchequer returns/other accounts/transition to having regard to 1 & 2 FMSS Page 11 of 252 EU & INTERNATIONAL DIVISION (Nicholas O’Brien) 1. Ensure Ireland’s interests are taken into account at EU fora, application of fiscal and economic architecture and in negotiations arising from EU/UK relationship 2. Further develop the Department’s strategy on international and EU alliances 3. Development of Irish interests in the EU Budget and manage the EU budgetary cycle 4. Advance the framework / strategy for EU economic policy coordination 5. Manage post programme processes and membership of Euro area funding mechanisms 4. Develop themes, strategies and methodologies relevant CORPORATE (Shared) to 3. 1. Enhance and promote good corporate governance and compliance 2. Develop and Implement underlying actions to HR Strategy (Leadership, Organisational Structure & Workforce Planning, Learning & Development, People Management and Employee Engagement) 3. Build fit for purpose ICT systems 4. Maximise efficient and coordinated usage of physical facilities. 5. Contribute to and implement Civil Service Reform Page 12 of 252 2.2 Finance and Banking Directorate - Business Plan Policy Priorities FUNDS, INSURANCE, MARKETS AND PENSIONS DIVISION (Aidan Carrigan) 1. Implement Cost of Insurance Working Group Report Phase 1 Actions and Phase 2 Review, Contribute to Interdepartmental Flood Policy Coordination Group 2. Progress Policy Review of Pensions Sector 3. Continue EU/International anti-money laundering CONSOLIDATED STRATEGIC programme of work and achieve successful outcome to PRIORITIES Financial Action Tack Force (FATF) inspection of Ireland. 1. Actively monitor performance 4. Ongoing representation of Irish interests in the of investments in BoI, AIB and negotiation of the EU legislative framework for PTSB and advance AIB exit financial services 5. Complete EU transposition agenda through primary options and secondary legislation in accordance with EU transposition deadlines 2. Continue to develop banking system to support economic BANKING POLICY DIVISION (Gary Tobin) growth through Financing for 1. Develop banking polices to deliver an effective and growth agenda and through efficient financial regulatory regime and a diversified and competitive financial system SBCI while having regard to 2. Implement Financing for Growth agenda and SME Brexit and promoting payments funding programme of work through Strategic Banking Corporation of Ireland (SBCI) having regard to Brexit and consumer protection Challenges agenda 3. Transposition of Payment Accounts Directive, Payments Services Directive and Mortgage Credit Directive 4. Manage reorientation of relationship with key stakeholders including Central Bank of Ireland (CBI), National Treasury Management Agency (NTMA) to support optimal financial stability
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