Joe Carey
Question:49 Deputy Joe Carey asked the Minister for Finance his proposals to develop better tools within the eurozone for dealing with imbalances within member states. [17132/10]
Written Answers.
The following are questions tabled by Members for written response and the ministerial replies as received on the day from the Departments [unrevised].
Questions Nos. 1 to 7, inclusive, answered orally.
Questions Nos. 8 to 39, inclusive, resubmitted.
Questions Nos. 40 to 48, inclusive, answered orally.
Economic and Monetary Union.
In light of the very significant shock to the global economy the issue of imbalances is one that is foremost in the minds of policymakers generally. The Deputy will be aware that the European Council has asked the President of the European Council to establish, in cooperation with the Commission, a task force with representatives of the Member States, the rotating presidency and the ECB. This task force is to present to the Council, before the end of this year, the measures needed to reach the objective of an improved crisis resolution framework and better budgetary discipline, exploring all options to reinforce the legal framework. I look forward to contributing to this process.
Within monetary union, imbalances within individual Member States can potentially have spillover effects for other participants, through for instance higher borrowing costs. It is, therefore, in the interests of all countries to reduce imbalances, such as domestic competitiveness positions. Appropriate income and fiscal policies as well as enhanced flexibility are some of the measures which can reduce imbalances and help to ensure a smoother functioning of monetary union.
In Ireland, many of our imbalances are being corrected. Competitiveness is being improved and our overall focus is being rebalanced towards exports rather than to unsustainable domestic demand-driven growth. In addition, the Government has taken and continues to take the necessary steps to maintain the public finances on a sustainable path, which is an important further step in addressing our domestic imbalances.
Bank Losses.
Liz McManus
Question:50 Deputy Liz McManus asked the Minister for Finance if he will estimate losses over a three year horizon by the guaranteed credit institutions on that portion of their loan books not destined for the National Asset Management Agency; and if he will make a statement on the matter. [17204/10]
It is a matter for the Board of each and Management of each institution to assess and make public as appropriate forecasts for future losses. As Minister, I don't make such forecasts but I do expect the Financial Regulator will make its own assessment of capital needs of banks, having regard to both expected and potential losses and appropriate capital levels.
New capital levels have recently been set by the Financial Regulator to ensure that the banks can maintain appropriate capital levels and withstand future losses, even under very stressed conditions. These are contained in the Prudential Capital Assessment Review published recently. As Minister, I have already indicated the steps that the Government is taking to ensure that the banks can meet their capital requirements. We have already started to put these measures into affect, in relation to Bank of Ireland. The House will agree with me that the fact that this bank can raise significant private capital is a real sign of stabilisation and recovery in the sector. There is much further work to be done to build on this significant step.
The Regulator requirement is that a level of 8 per cent of core tier 1 capital is to be attained by the end of the year. This level of capital must be met after taking account of future losses, from both NAMA and non-NAMA portfolios. This capital will be principally in the form of equity — a 7 per cent equity requirement. Equity is the highest quality form of capital, and the emerging international standard. In addition, further amounts, specific to each institution, are to be added on in the calculation of future loan losses. The new requirements also mean that banks cannot go below a level of 4% core tier 1 capital in a severely stressed scenario.
The Governor of the Central Bank, Patrick Honohan considers that the actions and announcements at the end of last month create a secure platform on which confidence in the banking sector will be built. The Financial Regulator has accepted that it is important that our banks move to a strong capital position as soon as possible and that we draw a line under the Irish banking crisis. Sufficient capital is an essential ingredient to ensure that banks can withstand future losses. He has applied a robust, realistic and prudent capital standard informed by his own detailed analysis and by emerging best practice internationally.
The stress test requirement is based on a severe scenario of hypothetical adverse macroeconomic conditions and therefore involves an element of judgment. The stress test inputs do not represent a forecast of likely economic developments by the Central Bank and Financial Regulator, instead they are much more adverse than what is considered likely.
Banking Sector Regulation.
Thomas P. Broughan
Question:51 Deputy Thomas P. Broughan asked the Minister for Finance when he plans to introduce legislation providing for a bank resolution mechanism or living will for insolvent banks; and if he will make a statement on the matter. [17196/10]
In the course of the NAMA Bill debate, I indicated I would examine options for the introduction of a legislative regime to deal in a systematic way with distressed financial institutions. My objective is to ensure the State has in place a range of tools to address problem institutions effectively in the interests of maintaining financial stability, minimising reliance on public moneys and ensuring continuity of key banking activities. Normal corporate insolvency procedures are not adequate for failing financial institutions as they were not designed with the objective of protecting financial stability.
In view of the central role performed by central banks in resolution frameworks for financial institutions, my Department is in consultation with the Central Bank and the Financial Regulator with a view to the development of suitable options for progress in this area including draft legislative proposals, which I will consider in due course. Special resolution regimes for the financial sector are increasingly recognised as a key means of reducing the impact of the distress or failure of individual financial institutions. My deliberations in this area are assisted by the work ongoing in a number of international fora.
At EU level, the Commission has consulted on a EU framework for cross-border crisis management in the banking sector to allow the relevant authorities to manage financial crisis events at cross-border banks. The Commission is expected to bring forward legislative proposals in 2001. Included in the Commission's proposal for discussion are additional powers for supervisors to require the preparation by systemically important institutions of firm-specific contingency and resolution plans. These plans sometimes referred to as ‘living wills' would detail how an institution and its business might be wound up rapidly and in an orderly fashion. Ireland is, of course, participating fully in the work at EU level to examine this and other possible elements of bank resolution tool-kits in a cross-border context.
Public Service Pay.
Richard Bruton
Question:52 Deputy Richard Bruton asked the Minister for Finance the way it is proposed to measure progress against which refunds of public service pay would be made under the proposed public service agreement with the public service committee of Irish Congress of Trade Unions. [17127/10]
The Financial Emergency Measures in the Public Interest Acts, 2009 under which the pension related deduction and pay reductions were applied to public servants make provision for a review of the operation, effectiveness and impact of both Acts before 30 June 2011. In addition to the criteria set out in the Acts, the draft Public Service Agreement provides that the reviews will take account of sustainable savings generated from the implementation of the Agreement in the public service. Those savings will be independently verified by an Implementation Body which is provided for under the Agreement. A report of the findings of the reviews must be laid before both Houses of the Oireachtas.
The Implementation Body provided for under the Agreement will drive the implementation of the agreed transformation measures across the Public Service with a view to achieving early, sustainable and verifiable outcomes to the process. The Body will comprise an independent chair with 3 nominees each from Public Service Management and the Public Services Committee of the Irish Congress of Trade Unions respectively. The sectoral agreements which form part of the overall agreement set out a clear agenda for change within each sector. The measures provided for under the Agreement vary across each sector and it is not possible at this point to be prescriptive as to what measures of progress will be adopted in each case by the Implementation Body.
The Government is determined that public service management will be proactive and ambitious in delivering on the full range of productivity and change measures envisaged in the Agreement, and accepted as necessary by all parties to it. Strong oversight by the Implementation Body will be an important factor in this.
National Asset Management Agency.
Pat Breen
Question:53 Deputy Pat Breen asked the Minister for Finance if he expects the National Asset Management Agency to accommodate social objectives in the course of its work; and the way these objectives will be established and funded. [17126/10]
NAMA has a commercial remit and generating a return for the taxpayer is a key objective. However, within the context of its commercial remit, NAMA will consider proposals aimed at facilitating public bodies in the creation of vibrant sustainable communities. I have previously indicated that such bodies could be given first option on NAMA properties for a limited period. With regard to social and affordable housing, I understand that the Department of Environment, Heritage and Local Government has made contact with NAMA to explore potential options which would enable such housing to be provided on a commercial basis.
Fiscal Policy.
Aengus Ó Snodaigh
Question:54 Deputy Aengus Ó Snodaigh asked the Minister for Finance if the EU has placed further demands on his Department to provide a renewed timeline for deficit reduction; or if the EU is still content with the projections provided by his Department in December 2009. [17095/10]
As part of the annual process the EU Commission recently issued its opinion on Ireland's Stability Programme Update. This, along with the other Member States programmes, was considered at Ecofin. Our Programme, which sets out our plan to have a General Government deficit below 3% of GDP by 2014, was welcomed. The Ecofin Council welcomed the substantial consolidation measures which we have undertaken and called on us to rigorously implement the budget for 2010. Therefore, the position remains as set out in the Ecofin Council recommendation of 2nd December 2009 which sets a deadline of 2014 to reduce the general government deficit below 3% of GDP in line with the Excessive Deficit Procedure of the Stability and Growth Pact.
Bernard J. Durkan
Question:55 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department have analysed the full and likely impact on the national debt, economic recovery, current and future borrowing requirements and taxation arising from the recent reappraisal by EUROSTAT of Ireland’s debt situation; the impact on borrowing costs; if a supplementary budget is planned arising from the now emerging situation; if any further reappraisal or recalculation of this country’s economic position is likely; the way the likely increased liability on the State is to be met in the short to medium term; and if he will make a statement on the matter. [17272/10]
I take it that the Deputy is referring to the publication last week by Eurostat of Member States fiscal data, including that for Ireland. This publication was based on the most recent Irish fiscal return made to Eurostat. As the Deputy will be aware, all Member States report to Eurostat twice a year in September and March on their fiscal position.
In Budget 2010, my Department estimated that the General Government Deficit for 2009 would be 11.7 per cent of GDP. The estimate for the headline deficit for 2009 has now been revised to 14.3 per cent of GDP. The difference between these two estimates is 2.6 per cent of GDP, of which 2.5 per cent of GDP relates to the technical reclassification of the €4 billion transfer to Anglo Irish Bank made in 2009. It is important to note that on foot of this reclassification, no additional borrowing has taken place and the underlying position of a deficit of 11.8 per cent of GDP for 2009 is broadly the same as that published in the Budget last December. This technical reclassification has a once off impact on the headline deficit. As such, it does not affect the Government's forecasts for the level of debt, or the forecasts for debt servicing costs, as the €4 billion had already been taken account of in the budgetary debt position. Furthermore, the fiscal consolidation plan as set out in the Budget is not impacted by the reclassification.
My Department's also published a forecast for the General Government deficit in 2010 last week. The General Government Deficit is still forecast to be some 11½ per cent of GDP in 2010 — this is in line with the forecast published in the Budget. The most recently published fiscal data in relation to 2010, the Exchequer returns for the first quarter of the year, were broadly in line with the projections as set out in the Budget.
The Exchequer Deficit at end-March 2010 was €3.9 billion compared to €3.7 billion at end-March 2009. My Department published monthly targets for both tax revenue and net voted expenditure earlier this year. In relation to tax revenue performance, €7.2 billion in tax receipts were collected by the end of March. This was 15 per cent below the same period in 2009 and was €266 million, or 3½ per cent below target. A significant year-on-year decline is expected in the initial months of 2010, with tax revenues forecast to end the year 6 per cent down on 2009. The overall tax revenue target for 2010 is just over €31 billion and based on the information available so far this year, this target remains valid.
Total net voted expenditure at end-March 2010 was €10.7 billion, representing a decline of some €1.1 billion or 9.2 per cent on the same period in 2009. This significant year-on-year reduction reflects both the expenditure policy changes which the Government has implemented and also, to a lesser extent, timing issues. The Revised Estimates Volume, published on 18 February, projected a 1.9 per cent reduction in total net voted spending for 2010 as a whole. In overall terms it is clear that the budgetary policy decisions taken by the Government are having the intended impact on the public finances and I have no reason to adjust the budgetary targets and the requirement for a Supplementary budget does not arise.
Banking Sector Regulation.
Richard Bruton
Question:56 Deputy Richard Bruton asked the Minister for Finance his views on the desirable restructuring of the banking sector here. [17128/10]
Eamon Gilmore
Question:66 Deputy Eamon Gilmore asked the Minister for Finance the position regarding prospective realignments within the domestic banking sector; the position regarding the future of building societies (details supplied); and if he will make a statement on the matter. [17211/10]
I propose to take Questions Nos. 56 and 66 together.
In the first instance it is a matter for independent financial institutions themselves to consider and determine their strategic arrangements, subject of course to necessary regulatory, competition and other relevant requirements. Regarding the State's role, its primary consideration continues to be to protect, in the public interest, the financial and economic system of the State. Where public support is provided to individual institutions, either in the form of participating in NAMA or by way of the provision of capital, such institutions will be required to prepare and submit restructuring plans to the EU Commission. So far, restructuring plans have been submitted by Anglo Irish Bank, Bank of Ireland and AIB. Following the State's recent capital investment in INBS and the commencement of NAMA, restructuring plans will also have to be submitted in respect of the two building societies in June. In respect of the INBS, as the new special investment shareholder in the Society, the Government has indicated that its priority, subject to all options being examined as part of the restructuring plan process, is to secure a swift sale of the Society or its integration with another entity.
I fully support the idea of a reformed and reinvigorated banking system that can serve our economy in a proper manner and within which there is scope for all credit institutions operating in the Irish market to play their full part. The Central Bank, the Financial Regulator and of course the EU Commission are also significant stakeholders in the future shape of the financial system and their views are important. I will continue to encourage all institutions to examine, separately or jointly, how they can meet their further capital or funding needs and develop business models to support economic development. I will consider all or any options presented to me and, insofar as possible and subject to EU requirements, play a positive role in supporting the delivery of viable plans consistent with competition and State aid requirements.
In my view it is better for the institutions to develop plans for the future rather than being in a centrally controlled plan. In any event, EU rules would probably not allow for the State to be directive in making arrangements between market participants. In addition, the State will not have a majority stake in some institutions and, as such, they in particular are free to develop their own long term plans subject to regulatory and shareholder approval and subject to EU and domestic rules.
Public Service Contracts.
Shane McEntee
Question:57 Deputy Shane McEntee asked the Minister for Finance the extent to which public service contracts are allocated to domestic small and medium enterprises; the way this proportion compares to other EU countries; if he plans policy initiatives to make contracts more accessible to Irish SMEs. [17179/10]
Studies indicate that in smaller Member States, small and medium enterprises tend to win a high percentage of public contracts. Figures, based on EU studies, indicate that about 65% of Ireland's public contracts, by value, is won by SMEs. This compares to between 30% to 35% for bigger Member States such as the UK, France, Germany and Spain. The figures relate to larger contracts advertised in the Official Journal of the EU (OJEU). These contracts comprise between 25% and 30% of the total public procurement market. Smaller contracts, generally between €50,000 and the OJEU publication threshold, are advertised nationally on the public procurement website www. etenders.gov.ie or, if of lower value, awarded following competition between an adequate number of suitable companies directly invited to tender. Details on categories of companies awarded these contracts are not available. However, indicative figures show a very high proportion of this market segment is won by domestic enterprises.
Government recognises the important business opportunities that public service contracts represent for business enterprises in the local and national economy and encourages participation to the greatest extent possible. Significant measures have been introduced which make it easier for small and medium enterprises (SMEs) to bid for public contracts. Among these are
the wide advertising of public procurement opportunities via the national public procurement website (etenders) which is now the established reference point for all procurement opportunities
the issue of email "alerts" directly to registered suppliers when contracts that might be of interest to them are advertised
the simplification of the tendering process through the etenders website having a facility to pre-qualify tenderers and to submit tenders online
the provision of more training for the "professionalisation" of public purchasers.
In recent years, sixty officials from forty organisations have undergone training in spend profiling and corporate procurement planning. A two year Masters qualification in Strategic Procurement is being offered by Dublin City University since September 2006 and an IPA Course is also available. Such initiatives are providing key public purchasers with the skills to appropriately promote whole of Government objectives and policies through the State's purchasing power.
More recently, the National Procurement Service (NPS) was established within the Office of Public Works. The Service is working closely with all areas of the public sector to promote efficiencies and economies in public procurement expenditure. It is acutely aware of the issues for SMEs and has commenced the process of
encouraging organisations to advertise low value contracts on etenders in order to promote SME participation
in association with the Chief State Solicitor's Office (CSSO), standardising contract and tender documents
educating SMEs through up-skilling by means of seminars/workshops/website
in association with the Department of Finance, reviewing appropriate levels of financial capacity required for public contracts
working with the CSSO and the State Claims Agency in examining the levels of public liability insurance required
working with Enterprise Ireland to encourage SMEs to tender for as many public contracts as possible
encouraging SMEs in the use of electronic tendering on etenders which requires no more than a personal computer and Internet access and does not involve the expense of specialist software
encouraging early advertising upcoming procurement opportunities.
Finally, my Department, in consultation with the NPS, the Department of Enterprise, Trade and Employment and other stakeholders in the public procurement market, has developed guidance for contracting authorities on measures to facilitate SME participation in the public procurement market. This will be published shortly.
Public Service Appointments.
Paul Connaughton
Question:58 Deputy Paul Connaughton asked the Minister for Finance if he is satisfied that the top level appointment committee gives reasonable scope for appointment from outside the public service and outside the appointing Departments. [17135/10]
The Top Level Appointments Committee (TLAC) holds competitions for and advises Ministers and the Government on appointments to civil service posts at Secretary General, Deputy Secretary and Assistant Secretary and equivalent levels. Since early 2007 the policy has been that open competitions are held for Assistant Secretary and Deputy Secretary and equivalent posts and more recently this policy has been extended to Secretary General posts, with the exception of a limited number of Secretary General posts which are filled by the Government without a TLAC competition. Where open competitions are held the normal practice is that the Public Appointments Service holds a preliminary competition and selects a shortlist of candidates for interview by the TLAC.
National Asset Management Agency.
Bernard Allen
Question:59 Deputy Bernard Allen asked the Minister for Finance when he expects to publish the National Asset Management Agency business plan; and if he has discussed the key parameters with the board following the decisions taken on the first tranche of loans. [17119/10]
The draft business plan was produced by the interim NAMA last October before the Board was appointed. Since the appointment of the Board, it has committed to the production of an updated business plan, with its own views, which it will submit to me by the end of June. It will then be published by the Board of NAMA. The business plan is a matter for the Board. However, the CEO of NAMA has stated that the Board when reviewing the business plan will take account of the actual data now available to it arising from the transfer of the first tranche of loans and that the plan will deal with key issues such as the intended use of the €5 billion borrowing facility and the assumptions relating to the recovery of property markets.
Flood Relief.
Denis Naughten
Question:60 Deputy Denis Naughten asked the Minister for Finance the steps he is taking to address the summer flooding in the Shannon basin; and if he will make a statement on the matter. [17103/10]
As stated in response to the Deputy's question of 10 March 2010, the Office of Public Works (OPW) has commenced a national programme of catchment Flood Risk Assessment and Management studies, which will lead to the development of comprehensive Flood Risk Assessment and Management plans for areas of significant flood risk. The OPW will initiate the appointment of consultants to undertake the Shannon FRAM in Summer 2010. The summer flooding of the Shannon Callows between Portumna and Athlone will be specifically examined in this study to reflect the social and environmental damage, which it causes to the catchment.
In the interim, OPW will engage with key local stakeholders to identify any meaningful interim measures, which would help reduce the incidence or impact of summer flooding. The OPW will engage with Waterways Ireland and the ESB to identify if changes to the management protocols of the major storage areas in the Shannon system, combined with timely use of meteorological and hydrological information, would mitigate seasonal flooding. The OPW will also consider any applications from the relevant Local Authorities for funding from its minor flood mitigation works scheme that meet the criteria of that scheme.
Air Services.
Emmet Stagg
Question:61 Deputy Emmet Stagg asked the Minister for Finance the cost to the economy and to the Exchequer, both directly and indirectly, arising from the grounding of commercial airlines due to the preponderance of dangerous volcanic ash in the atmosphere; and if he will make a statement on the matter. [17223/10]
I note that there have been a number of estimates put forward over the last week or so about the financial impact of the disruption to air travel caused by the volcanic eruption in Iceland, but these have not yet been fully substantiated. The EU Transport Commissioner Mr Siim Kallas has this week suggested that the week-long disruption could have cost companies across Europe up to 2.5 billion euro. My understanding is that the Commissioner is continuing to work towards a final figure for the economic and financial impact of this unprecedented event and is also considering what can be done at EU level to help the aviation sector, which has been worst affected.
Tax Code.
Seymour Crawford
Question:62 Deputy Seymour Crawford asked the Minister for Finance his views on whether a farmer who puts up a wind turbine to supply power to their own farm and surplus to the grid should be able to claim back VAT refund on that permanent structure the same as on any other permanent structure they build on the farm; if he will ensure that this anomaly is sorted out; and if he will make a statement on the matter. [16702/10]
Seymour Crawford
Question:113 Deputy Seymour Crawford asked the Minister for Finance his views on the situation regarding VAT refunds on wind turbines for use at farm or other levels in view of the fact that VAT is refunded on any other form of fixed equipment; his further views on whether everything possible to encourage such alternatives electricity provision is working; and if he will make a statement on the matter. [17101/10]
I propose to take Questions Nos. 62 and 113 together.
Farmers who are registered for VAT are accountable persons for VAT in respect of all their taxable activities, whether those activities consist solely of farming or both farming and other activities such as the generation of electricity for provision to the national grid. As accountable persons for VAT, they would be entitled to claim input credit for VAT charged on the installation of an alternative energy generator, such as a wind turbine, for use in their taxable activities.
In so far as farmers who are not registered for VAT are concerned, they are not in the normal course entitled to credit for, or repayment of, VAT incurred by them on their business inputs. The Value-Added Tax (Refund of Tax) (No 25) Order, 1993 provides for refunds to unregistered farmers for tax borne on the “construction, extension, alteration or reconstruction of any building or structure which is designed for use solely or mainly for the purposes of a farming business”. However, while the installation of an alternative energy generator, such as a wind turbine, may be the construction of a structure, such a structure is not “designed for use solely or mainly for the purposes of a farming business”. It is designed rather to generate electricity for wherever required. Consequently, the installation of a wind turbine does not come within the scope of the VAT refund order.
With regard to encouraging the provision of alternatives electricity, the Programme for Government contains a commitment to examine the current VAT classifications with a view to reducing the rate of VAT applied to certain environmental goods and services from the standard VAT rate to the reduced VAT rate of 13.5%. However, European VAT law does not provide for a reduction or exemption in VAT on the supply of goods or services based on their environmental impact per se. In 2008 the EU Commission undertook a study of the possibility of using reduced VAT rates as a tool to support the climate change agenda. Ireland expressed support for such a study. However, at a Council of Finance Ministers meeting in March 2009 the Ministers noted that reduced VAT rates as a tool for achieving environmental policy objectives are relevant only to a certain extent.
While the scope for reducing VAT is limited, the Finance Act 2008 provided for the VAT rate applicable on the supply of miscanthus rhizomes, seeds, bulbs, roots and similar goods used for the agricultural production of bio-fuels being reduced from the standard VAT rate to the reduced rate of 13.5%. This and other measures under the Programme for Government clearly demonstrate the Government's commitment to addressing the environmental challenges which we face.
In addition, the supply of certain environmental products, such as insulation materials, wind turbine equipment, wood pellet boilers and solar panels, are chargeable at the standard VAT rate which in Ireland is 21.5%. However, the reduced VAT rate of 13.5% may be applied to such products where they are provided under a single supply and install contract where the VAT exclusive cost of the goods does not exceed two-thirds of the total VAT exclusive charge to the customer. Furthermore in the area of corporation tax, companies are entitled to 100% capital allowances on expenditure incurred on qualifying energy-efficient equipment purchased for trade purposes.
Banks Recapitalisation.
Jan O'Sullivan
Question:63 Deputy Jan O’Sullivan asked the Minister for Finance his plans to exercise or direct the managers of the National Pension Reserve Fund to exercise the warrants attached to the preference shares acquired by the fund in AIB and Bank of Ireland; the terms attached to these warrants; the extent to which these warrants are currently in money; and if he will make a statement on the matter. [17214/10]
As part of the 2009 Recapitalisation of AIB and Bank of Ireland, the State received an option ("Warrants") to purchase 25% of the existing ordinary shares in each bank (calculated on a post-dilution basis). As disclosed at the time, these warrants are exercisable by the State between the fifth and tenth anniversary of the issuance date of the 2009 Preference Stock.
On Monday 26th April, Bank of Ireland, announced a €3.4 billion capital raising exercise. As part of this transaction, the State has agreed to sell its warrants back to the bank for a net €491m in cash. This represents the profit generated on the investment over the past year. In the case of Allied Irish Banks, based on a current share price of €1.45 (closing price 27th April 2010) and the strike prices of €0.975 for the core tranche (equivalent to 15% of the existing ordinary shares) and €0.375 for the remaining warrants, these warrants are also significantly in the money.
As regards Allied Irish Banks, it is currently preparing a capital plan for the Financial Regulator. Once this plan is complete we will have a better indication of the capital raising options open to the bank. As I have outlined previously the State is willing to convert some or all of its Preference Shares, as required, on terms to be agreed that will provide full value for the taxpayer. Post receipt of this plan we will also be in a better position to assess if a buyback proposal for the warrants will be appropriate.
Financial Institutions Support Scheme.
Róisín Shortall
Question:64 Deputy Róisín Shortall asked the Minister for Finance if he will elaborate on comments attributed to him that he intends to phase out the bank guarantee; and if he will make a statement on the matter. [17222/10]
In the statement on the banks which I made on 30 March 2010 I announced that I will be seeking the Commission's agreement for a modified extension of the guarantee consistent with a phasing out over a realistic period of time. In line with the State aid approval granted by the European Commission on 20 November 2009 in respect of the Eligible Liabilities Guarantee Scheme, the Commission is due to undertake its six-monthly review of the Scheme on 1 June next.
The timing and exact steps in the phasing out of the guarantee will be dependent on a range of factors, most notably the situation in global financial markets, the funding capacity available to Irish institutions, evolving EU policy on exit strategies for State support to the banking sector generally and from guarantees in particular, and financial stability risks to the Irish banking sector. Following the conclusion of the review process with the Commission I intend to make a firm announcement about the future of the guarantee having regard to all of the important issues.
Labour Market Trends.
Jack Wall
Question:65 Deputy Jack Wall asked the Minister for Finance if he will comment on recent labour market trends which show declining participation and increasing emigration; the impact that he expects these trends to have on the public finances in 2010 and 2011; and if he will make a statement on the matter. [17217/10]
Labour force participation rates have declined, falling by 1.7 per cent, year-on-year, in the fourth quarter of 2009. The decline was more pronounced for males, declining by 2.7 per cent, reflecting the strong decline in employment in the male-dominated construction sector and the challenges of re-skilling this group. We are working across Government departments to meet this challenge. Nonetheless, Ireland's overall labour participation rate remains high comparable to other EU member states and, in Q2 2009, was the third highest in the euro area.
The numbers of non-Irish nationals in the labour force is estimated to have declined by 33,600, or some ten per cent, in the year to the fourth quarter of 2009. A significant amount of this is due to outward migration. While no firm data are available, it is reasonable to assume, from anecdotal evidence, that there is also some outward migration of Irish nationals. As the Irish economy improves, and employment growth returns, I anticipate much of the short-term outward migration by Irish nationals will be reversed and in the more longer term, it is still reasonable to assume that, given our relatively high standard of living, we will be a source of attraction for non-Irish nationals as well.
Significant numbers are likely to leave the labour force this year due to net outward migration, with these numbers moderating in 2011 as the labour market recovers. Clearly this will have an impact on the public finances, with both the revenue and expenditure sides of the Government's balance sheet being affected. The demand for public services will also be affected by lower population growth. All these impacts have been factored into the fiscal projections of Budget 2010 and the data that has emerged since Budget time do not, at this stage, cause any revisions to the forecasts.
Question No. 66 answered with Question No. 56.
Bank Losses.
Brian O'Shea
Question:67 Deputy Brian O’Shea asked the Minister for Finance if he will estimate the level of loan losses expected to be incurred by Anglo Irish Bank arising from its exposure by a company (details supplied); and if he will make a statement on the matter. [17209/10]
Seán Barrett
Question:96 Deputy Seán Barrett asked the Minister for Finance the discussions he has had with Anglo Irish Bank regarding its relationship with a company (details supplied). [17124/10]
I propose to take Questions Nos. 67 and 96 together.
At the outset I should state that the relationship between Anglo and the company in question is a commercial one. Under the Relationship Framework put in place under the Anglo Irish Bank Corporation Act, 2009, which governs the relationship between the bank and its shareholder the State, issues relating to the commercial activities at the bank are a matter for the board at the bank in respect of which as Minister for Finance I have no role in day to day management decisions.
It has been well publicised that the bank has a large exposure to the company in question. Consequently the losses the bank might make depend to a large degree on future developments in the company and commercial decisions it makes in managing its commercial relationship with the company and any restructuring of the lending that may take place. In addition, the taking of impairments on loans by Anglo and the timing of those decisions is a commercial matter for the bank. As you will appreciate, in my role as Minister for Finance and consistent with the terms of the Relationship Framework, I have no input into such decisions which are a matter for the management and board of Anglo on the basis of the advice of their auditors in line with international accounting standards.
In summary, therefore, there are a number of commercial options open to Anglo management which could result in a variety of outcomes, making any accurate estimate of ultimate loan losses very difficult at this stage and subject to very significant uncertainties. However, I would expect Anglo to keep me informed of any significant developments which would affect their capital position including any impact, should it materialise, from its exposure to the Quinn Group.
Financial Services Regulation.
Damien English
Question:68 Deputy Damien English asked the Minister for Finance his plans to introduce credit directives in respect of financial institutions who have received State capital. [17155/10]
I assume that the Deputy is referring to the potential to issue directives on credit to the recapitalised institutions. To date, I have introduced one credit directive, S.I. No. 127 of 2010 which sets up the Credit Review System on a statutory basis. The Credit Review Office is available to review banks' decisions to refuse credit to small and medium enterprises (SMEs). It will provide an independent opinion of the banks' decisions on whether the credit should have been granted or not. SMEs can also seek a review of a decision to reduce or withdraw credit. In addition to dealing with individual cases, the credit review system will examine the credit policies and practices of the banks in respect of SMEs. This will help me to decide what further action might be necessary to secure the flow of credit.
I announced earlier this month under the NAMA Act that AIB and Bank of Ireland are to make available a minimum of €3 billion each for new or increased credit facilities, including working capital targeted at SMEs, in the real economy in the next two years. A letter was sent to both Bank of Ireland and AIB on 7 April requiring them to prepare a SME lending plan, broken down by sector and geography for submission to my Department by 12 May. Both banks are expected to make the credit available immediately and should not wait until the plans are submitted. These plans will be reviewed and if it is clear that it is necessary, I will introduce an SI to ensure that lending takes place into the economy.
Additionally, I have taken further measures to assist the credit situation in relation to SMEs including the requirement that the two largest banks provide €20 million each for seed capital to Enterprise Ireland supported projects, the requirement that the two banks each set up an additional €100 million fund for Environmental, Clean Energy and Innovation projects, the requirement that the banks commit to working with Enterprise Ireland and the IBF to develop sectoral expertise in the modern growth sectors, the requirement that they explore with Enterprise Ireland and the IBF how best to develop the range of banking services that Irish SMEs trading internationally will need, and the requirement to develop expertise and credit products in areas where cashflow rather than assets is the basis for lending. I have no plans to introduce other credit directives for the recapitalised banks.
Departmental Expenditure.
Jim O'Keeffe
Question:69 Deputy Jim O’Keeffe asked the Minister for Finance further to Parliamentary Question No. 100 of 31 March 2010, if he will now furnish the details required in respect of the amount of expenditure incurred in the period 1 January 2009 to 31 December 2009 by his Department and also offices, agencies and any other bodies falling within his remit, on the lease, rental or purchase of car parking spaces for use by civil and public servants to this Deputy; and if he will make a statement on the matter. [17100/10]
The Office of Pubic Works (OPW) provides car parking spaces for various Government Departments including the Department of Finance. I have been informed by the OPW that the information requested by the Deputy was not readily accessible and required significant resources to collate the relevant details. The OPW are currently finalising these details and will forward them directly to the Deputy upon completion of this process. In addition to car parking spaces provided by the Office of Public Works, the Office of the Revenue Commissioners has informed me that they spent €1,458 in respect of car parking spaces in 2009. The National Treasury Management Agency paid €147,270 in respect of rented parking spaces in 2009.
Unemployment Levels.
Ruairí Quinn
Question:70 Deputy Ruairí Quinn asked the Minister for Finance if he will comment on the most recent quarterly national household survey which showed that the number of persons unemployed added to those outside the labour force, but interested in finding work, increased from 10.8% at end 2008 to 16.5% at end 2009; and if he will make a statement on the matter. [17216/10]
In March, the CSO released the Quarterly National Household Survey for the fourth quarter of 2009. The QNHS' broadest survey-based labour supply indicator, known as S3, which includes the unemployed and those persons outside the labour force showing some interest in obtaining work, was 16.5 per cent in the fourth quarter. The figure is not a broader measure of unemployment. Rather, it illustrates the current extra potential of the labour market. While the most recent figure reflects the deterioration in the labour market over the past eighteen months and was a significant year-on-year increase, recent evidence from the Live Register suggest that unemployment indicators have stabilised in recent months.
The developments in the labour market that we have seen, as evidenced in the latest QNHS and Live Register releases, do not conflict with the current view of my Department as set out in the Budget day projections. My Department is forecasting an average of 460,000 persons on the Live Register for the year as a whole. However, the Live Register does not measure unemployment and includes part-time workers. The average number of persons on the Live Register for the year to end-March is 433,000. As such it may turn out that a lower average outturn may materialise.
Small Business Finance.
Mary Upton
Question:71 Deputy Mary Upton asked the Minister for Finance the position regarding the establishment and activities to date of the credit review office; and if he will make a statement on the matter. [17228/10]
Following Government approval on 30 March the Credit Review Office (CRO) was launched on 1 April. The Office is independent and will provide an independent opinion of the banks' decisions on whether the credit should have been granted or not. It commenced operation on 7 April and while it is clearly very early in the process the first applications for review arrived last week. A website, www.creditreview.ie, and a telephone helpline have been set up in conjunction with the launch of the office. By last week the website had received over 1200 hits, while the helpline had received almost 100 calls. Two fulltime staff are working in the Office and further staff will be engaged if required. Mr. John Trethowan, the head of the CRO, has engaged six underwriters with extensive experience in bank lending to assist in the review process on a case by case basis. Again, should the need arise, further underwriters may be contracted.
Mr. Trethowan has undertaken a number of media engagements in order to publicise the availability of the Office and advertisements have been placed in the main national newspapers. Both Bank of Ireland and Allied Irish Bank have placed leaflets advertising the Office in their branches. In addition, both banks have agreed to include leaflets in correspondence to a customer where an application for credit has been rejected.
Economic Growth.
Kathleen Lynch
Question:72 Deputy Kathleen Lynch asked the Minister for Finance if he will comment on the latest quarterly national accounts which showed a record 11.3% fall in GNP for 2009; if he will provide an estimate for GNP growth for first quarter and for the full year of 2010; and if he will make a statement on the matter. [17198/10]
Preliminary quarterly national accounts data show that the volume of GNP contracted by 11.3% last year. While this was the largest decline on record, and represents a very significant decline in our living standards, it was not unexpected. In the December 2009 budget, my Department had assumed a double-digit contraction for GNP last year of the order of 10½% and a 7½% decline in GDP. The preliminary data show that the decline in GDP last year was 7.1%.
The very sharp fall in national income last year was mainly due to a large decline in consumer spending and a contraction of nearly 50 per cent in the level of new house building. In addition, the volume of exports fell last year, although in aggregate terms our export performance was relatively good given the prevailing international climate.
My Department does not publish economic forecasts for individual quarters, as these can be volatile and subject to revision, hence the note of caution when analysing GDP on a quarterly basis. That said I would point out that, for the most part, the available data for the first quarter provide tentative evidence that conditions are beginning to stabilise. For this year as a whole, the budget day forecast is for GNP to contract by 1.7% and GDP to contract by 1.3% with positive annual growth anticipated during the second half of the year. This projection has not changed. Moreover, I note that most economic commentators now expect a resumption of positive growth from the second half of this year.
Financial Institutions Support Scheme.
Deirdre Clune
Question:73 Deputy Deirdre Clune asked the Minister for Finance the extent of State aid that has been involved in the bank guarantee scheme since it commenced operating; and if there are plans to recoup this aid for the Exchequer. [17134/10]
As the Deputy is aware, since 29 September 2008, the State has guaranteed certain liabilities of credit institutions in Ireland initially under the Credit Institutions (Financial Support) Scheme (the ‘CIFS' Scheme) but more recently under the Credit Institutions (Eligible Liabilities Guarantee) Scheme (the ‘ELG' Scheme). The Eligible Liabilities Guarantee (ELG) Scheme, which commenced on 9 December 2009 following Oireachtas and EU State aid approval, introduced important changes to the Guarantee for financial institutions bringing it more into line with the mainstream approach to similar guarantees in other EU Member States.
The ELG Scheme is intended to facilitate the ability of credit institutions in Ireland to issue debt securities and take term deposits with a maturity post-September 2010 of up to five years, on either a guaranteed or unguaranteed basis. The ECB pricing recommendations on government guarantees for bank debt apply to liabilities guaranteed under the ELG Scheme. This is the standard pricing arrangements which now applies to all Guarantee schemes securing approval of the European Commission in line with the applicable State aid rules. The exact remuneration payable to the State is dependent on a range of factors such as the maturity profile of the liabilities and the extent to which institutions chose to make unguaranteed issuances, however the fee will be charged at a higher rate than under CIFS. The average fee for short-term bank debt now stands at 0.5% under the new scheme.
The yield to the Exchequer in respect of guarantee fees as remuneration from the institutions for the availability of the State Guarantee is expected to amount to at least €1 billion over two years from September 2008. To date €718m in respect of the CIFS scheme and €90.5m in respect of the ELG scheme has been collected from the institutions. The fees charged to guaranteed institutions have been approved by the European Commission and help ensure the compatibility of the guarantee schemes with EC state aid requirements. Other than in relation to the payment of these fees by the institutions participating in the guarantee schemes the issue of recouping the state aid provided under the schemes does not arise.
National Asset Management Agency.
Ciaran Lynch
Question:74 Deputy Ciarán Lynch asked the Minister for Finance the position regarding the preparation of a revised National Asset Management Agency business plan; when he expects the publication of a revised NAMA business plan; and if he will make a statement on the matter. [17202/10]
The draft business plan was produced by the interim NAMA last October before the Board was appointed. Since the appointment of the Board, it has committed to the production of an updated business plan, with its own views, which it will submit to me by the end of June. It will then be published by the Board of NAMA.
Question No. 75 answered with Question No. 48.
Financial Services Regulation.
Caoimhghín Ó Caoláin
Question:76 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance his views on whether the current regulatory process for auditing firms is adequate; if the self-regulatory regime for accountants and auditors should continue; if he has been approached about problems in these auditing firms; and if he has any plans to change the regulation process for these firms. [17094/10]
Policy matters relating to the regulation of auditing and accounting bodies are the responsibility of my colleague, the Minister for Enterprise, Trade and Employment in the first instance. As I stated to the Deputy on 1 April in this House, the questions he raises with regard to the conduct of certain accountancy and auditing firms are legitimate. Notwithstanding the responsibility of the Minister for Enterprise, Trade and Employment in relation to the regulation of audit firms, I am of the view that the banking inquiry could provide a context within which the general matters referred to in the course of that debate can be addressed. I have already drawn the attention of Messrs. Regling and Watson to the issues raised, in the context of their preliminary investigation into the crisis in the banking sector in Ireland.
Following my comments in the course of that debate, Chartered Accountants Ireland have written to me to advise me of investigations that the Chartered Accountants Regulatory Board is undertaking in relation to chartered accountants who were directors of financial institutions. I intend to bring this correspondence to the attention of the Minister for Enterprise, Trade and Employment.
Mary Upton
Question:77 Deputy Mary Upton asked the Minister for Finance the progress made to date regarding the strategic review of the credit union sector; and if he will make a statement on the matter. [17227/10]
I have requested the Financial Regulator to carry out this Strategic Review of the Credit Union Sector in Ireland. The Project is being managed by the Registrar of Credit Unions and my officials are liaising closely with him in relation to the project. With regard to progress, the Registrar has received expressions of interest and has issued an invitation to tender to a short-list of tenderers. It is anticipated that the selection process will be completed by June 2010 and work will begin shortly thereafter. I expect to have a report on the full project by end-March 2011.
The scope of the review has been agreed with my Department. The review will include a financial review and a risk analysis of the credit union sector, an examination of the external support mechanisms required for the protection of members' savings, governance and competency standards and the regulatory and legislative framework. The impact of current and emerging consumer protection requirements, other European Union legislation and services on offer by credit unions will also be included in the review.
In relation to the further development of the credit union sector, the outcomes for this project are to develop proposals and make recommendations for a modern operational model for credit unions, supported by an appropriate and enabling legislative and regulatory framework. This framework must reflect the needs of credit unions and of their members. It should be able to support the development of the movement into the future.
National Asset Management Agency.
Bernard J. Durkan
Question:78 Deputy Bernard J. Durkan asked the Minister for Finance if with the passage of time the assumptions and calculations made by him and his Department in the compilation of the National Asset Management Agency plan with particular reference to projected property discounts and eventual liability on the State were soundly and accurately projected, sourced and based; the extent to which the now emerging situation is likely to impact on the taxpayer; if he and or his Department have carried out any reappraisal or stress testing of the NAMA project with a view to the restoration of confidence in this country’s economy; the nature of such changes; the extent to which economic recovery has been affected or is likely to be affected in one way or another; and if he will make a statement on the matter. [17273/10]
The NAMA draft business plan published in October 2009, was as the title suggests in draft from and was prepared by the interim NAMA team for the purpose of explaining the background to NAMA and the manner in which it will carry out its functions and duties. The figures included in the draft business plan were indicative figures. The NAMA Board is working on analysing the real data now available to it in relation to eligible assets and valuation. Building on this analysis, the Board will produce an updated business plan which it will submit to me by the end of June. It will then be published by the Board of NAMA.
The fact that the discount on the first tranche of NAMA loans is expected to be 47% as opposed to the initial estimate of 30% is further proof of the robustness of the overall process. This increase in the discount is a consequence of several factors; the fall in property values, a detailed scrutiny of loan and security documentation and an assessment of the prospects for the underlying property which secures loans.
The calculation of the discounts followed detailed loan by loan assessments which included legal due diligence, a detailed valuation process, and internal and external checking processes, including external audit. In my Dáil speech on banking on the 30th March I explained the impact on the taxpayer of the NAMA process and the cost of recapitalising the participating institutions. I also explained that this restructuring and recapitalisation was critical to ensure that the banks can supply the credit necessary to underpin our economic recovery. The widespread and continuing positive comment on our handling of the banking crisis reflects the fact that we have dealt with these issues head on have not shirked from the difficult decisions required. This decisive Government action will feed into the economy through increased willingness to invest in Ireland. This investment will enhance the growth of our economy.
Tax Code.
Thomas P. Broughan
Question:79 Deputy Thomas P. Broughan asked the Minister for Finance if he has met or been briefed by airlines (details supplied) on the air travel tax; his views on the recent statements (details further supplied) on the negative impact of the air travel tax on Irish transport and tourism; the cost benefit analysis of the cost per year of abolishing the tax; and if he will make a statement on the matter. [12788/10]
I have received a report commissioned jointly by Aer Lingus, Ryanair and Cityjet from Amsterdam Aviation Economics in relation to the air travel tax. The report and the analysis therein, including those assumptions made by the authors, continue to be examined by my officials. However, I understand the report makes a number of important assumptions, and the data on which they are based, are omitted from the report. It would be useful if that data and indeed the underlying analysis were to be made available.
Comments on the air travel tax need a sense of balance. The key reason why we have less people travelling through our airports is that domestic circumstances are influencing travel patterns and this situation is broadly being reflected on an international basis. Some airlines that have expressed dissatisfaction with the air travel tax have seen fit to increase or introduce other charges to passengers who we are repeatedly told are extremely price sensitive. I make this point in order that the debate on this issue can be a more mature one. The air travel tax arising from travel undertaken in any month is payable by airline operators by the 23rd of the following month. The yield from the air travel tax received in the period from May 2009 to March 2010, in respect of travel undertaken during the months April 2009 to February 2010 i.e. eleven months is €105.4 million. I have no plans to abolish the air travel tax.
Financial Services Regulation.
Denis Naughten
Question:80 Deputy Denis Naughten asked the Minister for Finance the steps which he is taking to address the cost of sub-prime mortgages; the discussions he has had with the Financial Regulator on the issue; and if he will make a statement on the matter. [17102/10]
The decision on the interest rate to be charged by lending institutions is a commercial decision for the financial institutions concerned. Individual institutions set rates based on their cost of funds, market conditions and commercial considerations. The Financial Regulator has no statutory role in the setting of interest rates by regulated entities.
The Government took steps in October 2007, via an amendment to the Central Bank Act, 1997, to provide for an appropriate system of authorisation and supervision by the Financial Regulator of retail credit firms engaged in specialist or so-called ‘sub-prime lending'. Such lenders were not previously subject to financial regulation in respect of lending activities. The primary purpose of this amendment was to extend, to customers of these firms, the benefit of the consumer protections provided for in the Financial Regulator's Consumer Protection Code. This regulatory regime has been in place since 1 February 2008 and is being implemented by the Financial Regulator.
In addition, I am aware that the Financial Regulator has recently written to all mortgage lenders requesting them to impose charges only where they can be justified, having considered the individual consumer's circumstances and in line with the requirement of the Financial Regulator's Code of Conduct on Mortgage Arrears to handle arrears cases sympathetically and positively with the objective of assisting consumers in meeting their obligations.
Banks Recapitalisation.
Bernard Allen
Question:81 Deputy Bernard Allen asked the Minister for Finance if he will arrange to present full details of the worked costings of keeping Anglo Irish Bank as a going concern, compared to an orderly wind down of that bank. [17120/10]
I have no plans to present full details of the worked costings of the options regarding the future of Anglo Irish Bank at this time. As the Deputy is aware Anglo is currently updating its Restructuring Plan to take account of EU Commission's feedback on the initial plan submitted by the bank on 30 November last. The plan will examine all options for the bank's future including: immediate liquidation, wind-down over a longer period of time, a split between a good bank and an asset management company, and maintaining the bank in its current form as a going concern. The revised plan is to be submitted to the EU Commission by the end of May 2010.
Significant further work remains to be done by the bank and its advisers on the updated Restructuring Plan to test and verify the assumptions in each scenario for the future of the bank. The Deputy will appreciate that at this critical juncture in the process and having regard to the commercial sensitivity of the information and the need to ensure proper protocols are observed in dealing with the EU Commission it is not appropriate for me to publish the details of the plan which is still a draft. The EU Commission in publishing its decision will include all information pertinent to the decision, subject only to an objective assessment on the commercial sensitivity and confidentiality of the information.
I can assure the Deputy that my main concern is to ensure that in any plan the interests of the taxpayer are paramount and that my preferred approach to the options presented in the plan will be consistent with that concern. Any plan submitted by the bank will be reviewed by me and my advisors and I will take advice also from the Central Bank, the Financial Regulator and the NTMA.
Ruairí Quinn
Question:82 Deputy Ruairí Quinn asked the Minister for Finance if he expects the coupon payable in 2010 on the preference shares acquired by the National Pensions Reserve Fund in a bank (details supplied) to be paid in cash or through the issue of ordinary shares; and if he will make a statement on the matter. [17215/10]
During 2009 the European Commission indicated that, in line with its policy on State Aid and pending its assessment of the named bank's restructuring plan, it should not make coupon payments on its tier 1 and tier 2 capital instruments unless under a binding legal obligation to do so. The bank agreed to this request by the Commission and resolved not to pay the non-cumulative distribution on a Sterling Security, which is guaranteed and which had been due to be paid on 14 December 2009. The effect of this decision by the bank was to trigger the ‘Dividend Stopper' provisions of the securities, which precluded it for a period of one calendar year from and including 14 December 2009, from declaring and paying certain distributions or dividends including its ordinary shares and the Irish Government €3.5 billion preference shares.
The Bank would be precluded, should the ‘Dividend Stopper' remain in force, from paying the dividend due on the preference shares on 13 May 2010. Under these circumstances, in accordance with the terms of the preference shares, the National Pensions Reserve Fund Commission would become entitled to be issued with, at a date in the future, a number of ordinary shares related to the cash amount of the dividend that would otherwise have been payable. It is not for me to pre-empt the work of the European Commission. It is our preference to receive the dividend so if the prohibition is lifted before that date there is scope for a cash payment. If not, we will take ordinary shares in the bank.
Financial Services Regulation.
James Bannon
Question:83 Deputy James Bannon asked the Minister for Finance his views on whether the credit bureau system where information on credit performance is pooled among participating financial institutions should be put on a proper regulatory footing in order that the terms of access for other users and service providers would be operated in a fair and equitable way. [17121/10]
It is important that there are facilities available which record and give access to credit history information and help credit institutions to be well informed when making decisions on the provision of credit. My Department is currently looking at the credit reporting system in Ireland so as to inform me of any issues that need to be addressed and of what measures are required to be taken. The Department of Finance recognises that consultation with the relevant stakeholders will be required in order to complete a comprehensive analysis of how to achieve effective credit reporting in Ireland.
Flood Relief.
Jim O'Keeffe
Question:84 Deputy Jim O’Keeffe asked the Minister for Finance when the next phase of funding will be made available by the Office of Public Works to local authorities in 2010 for minor works and studies to address localised flood and coastal erosion problems; the amount of funding that will be available; and if he will make a statement on the matter. [17099/10]
I announced in March of this year details of the first phase of funding being made available by the OPW to Local Authorities in 2010 for minor works and studies to address localised flood and coastal erosion problems. OPW had initially allocated the sum of €6m for the Minor Works and Coastal Protection Programmes. However, based on assessments completed by OPW of applications received from Local Authorities to date, the sum of €6.7m has already been allocated. The sum of €5.43m was allocated to 12 Local Authorities for measures to address localised flooding problems in 52 inland areas. In addition, allocations totalling €1.27m were made to 6 Local Authorities for minor coastal flooding and erosion measures at 8 locations around the country. These allocations will allow the Local Authorities to proceed with these measures now to reduce the level of risk in the communities involved.
The application assessment process is continuing, and OPW are liaising with a number of Local Authorities regarding applications in respect of which additional information is required. Given the level of applications received, OPW are reviewing the funding available to meet demand, and it is open to Local Authorities to submit further applications under this scheme during 2010. All applications that met the relevant eligibility criteria will be considered, having regard to the overall resources available. OPW expect to be in a position to announce details of the availability of further funding in May. The Minor Flood Relief and Coastal Protection Programme introduced last year is an important element in the OPW's strategy for reducing and mitigating flood risks throughout the country.
Fiscal Policy.
Sean Sherlock
Question:85 Deputy Seán Sherlock asked the Minister for Finance the way it is envisaged that Ireland will fund up to €480 million to lend to Greece under the emergency EU-led lending facility; and if he will make a statement on the matter. [17220/10]
The Government recently approved the participation of Ireland in euro area co-ordinated financial support to Greece via bilateral loans centrally pooled by the European Commission as part of an agreed Euro Area package, to be co-financed by the IMF; and agreed to the preparation of the necessary enabling legislation. Work is progressing in this regard and I anticipate that matters will be before the house shortly.
The overall size of distribution of assistance has yet to be finalised but based on a Euro area year one contribution of €30 billion, Ireland's share of this contribution, which is based on its ECB paid capital, would be 1.64% or approximately €500 million. The cost of this facility would be met by the Greeks, under the terms of the assistance package, and the amount must be considered in the context of the overall funding needs of the State, which this year are estimated to be of the order of €20 billion.
The Commission is making solid and rapid progress with the ECB, the IMF and the Greek authorities to finalise the Greek adjustment programme. The Commission expects this work to be finalised in the coming days. On this basis, the Euro area members will take the decision on the activation of the financial support as decided by the Heads of State and Government of the Euro area on 25 March and specified by the Eurogroup on 11 April. All euro-area Member States are finalising the procedures that will allow them to provide financial support to Greece as necessary.
Small Business Finance.
Brian O'Shea
Question:86 Deputy Brian O’Shea asked the Minister for Finance his views on whether the completion of the National Asset Management Agency will not see a significant increase in lending here; his further views on whether private sector credit will continue to contract over the remainder of 2010 and during 2011; and if he will make a statement on the matter. [17212/10]
The third Mazars report on lending to SMEs, which covers the period from October to December 2009, was published last week. The report showed that credit applications in number and value terms rose slightly in the last quarter of 2009 over the previous quarter, which is encouraging. The level of applications for credit would appear to be stabilising and Mazars also reported a small improvement in the overall credit approval rate. However, the reduction in the stock of credit, as repayments exceed new credit, and in credit quality reported by the banks remains a concern for the Government. To address this concern, I announced earlier this month that AIB and Bank of Ireland are to make available a minimum of €3 billion each for new or increased credit facilities, including working capital targeted at SMEs, in the real economy in each of the next two years.
The recently established Credit Review Office is available to review banks' decisions to refuse credit to small and medium enterprises (SMEs). It will provide an independent opinion of the banks' decisions on whether the credit should have been granted or not. SMEs can also seek a review of a decision to reduce or withdraw credit. In addition to dealing with individual cases, the credit review system will examine the credit policies and practices of the banks in respect of SMEs. This will help me to decide what further action might be necessary to secure the flow of credit. I intend to publish the analysis from the review process so that the performance of the banks participating in NAMA will be clear to all.
The Financial Regulator has set down capital requirements for each of the banks. Bank of Ireland has already begun to implement its plan to raise €3.4 billion of capital and it was encouraging that the share placing earlier this week was nearly four times oversubscribed. Allied Irish Bank has announced that it is selling assets to raise capital. As I have outlined previously the State is willing to convert some or all of its preference shares, as required, on terms to be agreed that will provide full value for the taxpayer. The combination of cleansed balance sheets, following the removal of the riskiest loans by NAMA, and recapitalisation will put the banks in a stronger position to access liquidity, secure funding and increase lending.
Job Protection.
Liz McManus
Question:87 Deputy Liz McManus asked the Minister for Finance the position regarding the status of a company (details supplied); the number of entities that have expressed an interest in acquiring the insurance part of the company; the steps that are being taken to ensure the greatest possible protection of the employees; and if he will make a statement on the matter. [17203/10]
As the Deputy will be aware, on 15 April, the High Court appointed full time administrators to Quinn Insurance Limited. This follows Quinn Insurance Limited's (QIL) decision to consent to the appointment made by the High Court on application made by the Financial Regulator. It is the Financial Regulators and QILs opinion that this step is in the best interests of policyholders. It means that the company is able to pay claims and renew policies in the normal way here in Ireland and continues to settle claims in the UK. It also puts the business on a sound commercial and financial footing and this best serves the proper and orderly regulation of QIL and the wider insurance market.
I am conscious of the position of employees of Quinn Insurance as a result of the appointment of the joint Administrators to the company. I am aware that a key element in safeguarding employment in Quinn Insurance is the re-opening of its UK business. In this regard, I welcome the decision by the Financial Regulator to allow the company to write motor insurance cover, for provisional driver licence holders in the United Kingdom including Northern Ireland with effect from 22 April. This is an important first step in ensuring that the value of the business is maintained as it enhances the prospect of the Administrators being able to sell the firm as a going concern.
The submission of detailed business plans and proposals in relation to re-opening further lines of business in the UK is a matter for the Administrators. The Financial Regulator has informed me that it has been engaged with the Administrators in recent weeks and is giving all proposals full consideration. Before making any decision on this matter the Financial Regulator will have to be satisfied that any proposals stand up to scrutiny and are supported by robust and detailed information, actuarial analysis and pricing.
The Government remains concerned about the position on employment in QIL generally. That is why the parties involved must continue to work to find a solution that addresses the issues of putting the company back on a sound commercial and financial footing. This is the best way of protecting jobs and the wider interests of the taxpayer. The administrators have said that they will continue to engage constructively with staff and management at the company as they endeavour to secure its future. In that context, I understand they will be meeting with staff representatives on Friday, 30 April to advise them of their decision on what measures are necessary in relation to employment levels as part of the recovery plan for the company.
I cannot comment directly on the issue of the number of companies that have expressed an interest in acquiring Quinn Insurance as this is a matter for the Administrators rather than my Department. I am aware however, that the Administrators have indicated that a significant number of companies have expressed an initial interest in the company. A complete analysis of the financial position of the company is still being carried out by the Administrators and this must be completed before there is further progress here.
Finally, in relation to the broader Quinn Group, I have been informed by my colleague Mr. Batt O'Keeffe, the Minister for Enterprise, Trade and Innovation, that the Chairman and Chief Executive of Enterprise Ireland met with the senior management of the Group earlier this month. He has indicated that Enterprise Ireland stands ready to provide all possible support to the company with a view to maintaining the maximum number of jobs when the company's position is clarified in the period ahead.
Financial Institutions Support Scheme.
Ciaran Lynch
Question:88 Deputy Ciarán Lynch asked the Minister for Finance the liabilities currently guaranteed under the credit institutions financial support scheme; the liabilities currently guaranteed under the eligible liabilities guarantee scheme; the liabilities he expects to be guaranteed under ELG guarantee scheme before 30 September 2010; and if he will make a statement on the matter. [17201/10]
The total amount guaranteed under the Eligible Liabilities Guarantee Scheme at 31 March 2010 was €140bn. Of this amount, guaranteed deposits amounted to €108bn. The last audited figures for CIFS were at end year 2009 and liabilities stood at €280bn. However, liabilities covered under the CIFS Scheme have been decreasing significantly over the course of Q1 as moneys migrate to ELG when they roll and audited figures are not available as yet.
The scope of coverage under the ELG Scheme is considerably less than that under the CIFS Scheme with dated subordinated debt and asset covered securities no longer guaranteed. The structure of the ELG Scheme allows participating institutions to issue both guaranteed and unguaranteed liabilities, which will help reduce their reliance on State support over time as financial market conditions continue to improve. Thus it is difficult to estimate the sum that will be covered by the ELG Scheme come September 2010. However, given that the scope is more restricted than CIFS and that ELG will only apply to fixed term deposits after this date, I expect outstanding guaranteed liabilities to be considerably lower than the €280bn which was guaranteed under CIFS at end 2009.
Tax Collection.
Joan Burton
Question:89 Deputy Joan Burton asked the Minister for Finance the progress made to date by the Revenue Commissioners in its investigation into offshore assets and foreign-held bank accounts; and if he will make a statement on the matter. [17229/10]
Since 2004 the Revenue Commissioners have been conducting a comprehensive investigation into the use of offshore accounts by Irish residents as a means to evade tax. Prior to the commencement of the investigation, Revenue launched a voluntary disclosure initiative which resulted in €650m being collected from over 14,000 taxpayers. Subsequent to the voluntary disclosure initiative, Revenue sought and were granted Orders by the High Court which required financial institutions in the State to advise Revenue concerning money transfers to and from this State involving their offshore affiliates. As a result of these Orders, Revenue identified persons who failed to avail of the voluntary disclosure initiative and further significant liabilities were recovered. I am advised that in December 2009 a further series of Orders were made by the High Court which extends the scope of the investigation both to other territories and other offshore financial institutions.
To date, in total some €956m has been recovered by the investigation and the additional moneys collected arose from taxpayers identified from the High Court Orders and uplifts from the examination of the voluntary disclosures received.
Mortgage Arrears.
Joan Burton
Question:90 Deputy Joan Burton asked the Minister for Finance the progress made to date by the interdepartmental mortgage arrears review group; if he envisages a need for legislation to implement the recommendations of the group; and if he will make a statement on the matter. [17195/10]
The Deputy will be aware that in February this year, I informed the Government of my proposals regarding expanding the membership of the Interdepartmental Mortgage Arrears Group, under the Chairmanship of Mr. Hugh Cooney. This revamped Mortgage Arrears and Personal Debt Group's (the Group) Terms of Reference, which I approved, were incorporated into the supplementary documentation for the Statement on Banking which I delivered to this House on 30 March 2010.
The Group, which has met on a number of occasions, is initially exploring the feasibility of a range of possible options for improving the level of mortgage support to homeowners in difficulty. I understand that proposals will be based on factual information gathered by the Group and will take into account the findings of existing reports and mortgage support schemes in operation in other jurisdictions. The Group will report to me with its recommendations on a rolling basis and will submit a final report to me by the end of June of this year. Until the Group reports to me with its recommendations I am not in a position to say if legislation will be required.
Banks Recapitalisation.
Emmet Stagg
Question:91 Deputy Emmet Stagg asked the Minister for Finance the reason, in view of the relationship framework, pursuant to section 3 of the Anglo Irish Bank Corporation Act 2009, any information and documentation which the board or senior executives are aware of and would have required public disclosure if the ordinary shares of Anglo Irish Bank remained listed on the official list of the Irish Stock Exchange, shall promptly be brought to his attention in writing by Anglo Irish Bank, but are not in fact publicly disclosed; and if he will make a statement on the matter. [17224/10]
As the Deputy is aware the Anglo Irish Bank Corporation Act 2009 provided for the transfer of all the shares of the Bank to the Minister for Finance. The Bank was re-registered as a private limited company on the day the legislation was enacted. During 2009 the Bank adopted the Code of Practice for the Governance of State Bodies and is working with the Department of Finance towards full compliance, where applicable. The Bank has also adopted, and is in compliance with, the corporate governance and other obligations imposed by the Ethics in Public Office Act 1995 and the Standards in Public Office Act 2001. Further, the Combined Code on Corporate Governance issued by the Financial Reporting Council in June 2008 sets out the principles of good governance and a code of best practice.
Companies listed on the Irish Stock Exchange are required to report on their compliance with the provisions of the Combined Code. Although the Bank's shares are no longer listed on the Irish and London Stock Exchanges, the Board supports the principles and provisions of the Combined Code. The corporate governance statement in the bank's accounts for the 15 month period to 31 December 2009 describes how the Bank applied the principles of the Combined Code throughout the financial period ended 31 December 2009.
The Relationship Framework on the other hand provides the basis on which the relationship between the Minister and the Bank shall be governed. In the interests of facilitating compliance with EU State aid and competition policy the Relationship Framework recognises the separation of Anglo Irish Bank from the Minister and limits intervention by the Minister in the conduct of Anglo Irish Bank's business to that necessary to protect the public interest. The Relationship Framework may be amended by the Minister as he sees fit, subject to EU consent. There has been regular communication between the Shareholder and the Directors in this regard.
It is a matter for the Board of the Bank, in the first instance, as to how the Bank complies with disclosure requirements generally. However, I would expect to be informed of any significant issues for the Bank that would have a bearing on its financial position or on other matters that would be matters of public interest.
General Government Deficits.
Róisín Shortall
Question:92 Deputy Róisín Shortall asked the Minister for Finance if he will comment on the publication by EUROSTAT of 2009 data on deficits and debt burdens of EU Governments which showed Ireland to have had the biggest general government deficit of any EU member state for 2009; and if he will make a statement on the matter. [17221/10]
Leo Varadkar
Question:103 Deputy Leo Varadkar asked the Minister for Finance if he will comment on the implications of the EUROSTAT classification of the recapitalisation of Anglo Irish Bank in 2009 for the deficit reduction plans that have been agreed with the European Commission. [17274/10]
Joe Costello
Question:116 Deputy Joe Costello asked the Minister for Finance if he will comment on the publication by EUROSTAT of 2009 data on EU government deficits and debt burdens which showed Ireland to have had the biggest general government deficit of any EU member state for 2009; and if he will make a statement on the matter. [17233/10]
I propose to take Questions Nos. 92, 103 and 116 together.
On April 22nd Eurostat published fiscal data which showed a General Government Deficit of 14.3% of GDP for Ireland in 2009. This figure is a revision of the Budget day estimate of 11.7% of GDP due to a technical reclassification of a €4 billion investment by the Government in Anglo Irish Bank. Initially the Irish authorities, with regard to Eurostat guidelines, classified this as a financial transaction and as such it did not affect the general government balance. However, since then the Irish authorities have reviewed the matter in light of later information and concluded that the transaction should now be considered a capital injection rather than a financial transaction. This was reported to Eurostat in the statistical transmission published last week.
The result is the deficit has been re-calculated to be 14.3% of GDP. However, there is no additional borrowing as a result of this technical reclassification. The Exchequer Balance, National Debt and General Government Debt had already accounted for this borrowing. The underlying General Government Balance excluding this reclassification is 11.8% of GDP, which is broadly in line with the Budget day estimate.
This reclassification is a once-off adjustment that only impacts on 2009 and does not affect the Budget day forecast for a General Government Balance of 11.5% of GDP for 2010. That said, it is important to note that our deficit is very high and this is why we have taken the various series of measures since July 2008 to strengthen the Budgetary position. Furthermore, it points to the need for continued fiscal discipline and further adjustments. In that context, Ireland's fiscal targets have not changed in light of these statistical returns, and the Government's agreed target to reduce the General Government Deficit to below 3% of GDP by 2014 still stands.
Banking Sector Regulation.
Catherine Byrne
Question:93 Deputy Catherine Byrne asked the Minister for Finance his views on whether increases in bank charges and interest rates are consistent with the banking policy; and if he will make a statement on the matter. [17130/10]
Credit institutions are required to notify non-interest bank charges to the Financial Regulator for approval. When approving charges, the Financial Regulator takes the following criteria into consideration:
promotion of fair competition,
commercial justification,
the effect on customers or a group of customers.
Legal fees tend to be imposed by third parties and then passed on directly by the institution to the consumer. In general these do not require approval.
As regards interest rates wholesale interest rates are set by the European Central Bank (ECB). The setting of retail interest rates by banks reflects a number of factors. These factors include the fact that funding comes from different sources. Some of it is provided by the ECB and some of it comes via the inter bank markets at market rates. Individual institutions set rates based on their cost of funds and commercial considerations. Examples of commercial considerations they have to take into account are competition, risk pricing and what level of deposit interest they have to give to attract funds. They also have to generate some level of profit to ensure their commercial viability.
Banks Recapitalisation.
Joanna Tuffy
Question:94 Deputy Joanna Tuffy asked the Minister for Finance the mechanism and terms for the conversion of preference shares in banks (details supplied) held by the National Pensions Reserve Fund to ordinary shares; the outcome to the warrants in the case of such a conversion; the steps that would be taken to protect the warrants from devaluation as a result of dilution; and if he will make a statement on the matter. [17225/10]
Outlined in the terms of the 2009 recapitalisation of Bank of Ireland and Allied Irish Banks, was a provision that the State's Preference shares could be redeemed by the banks from distributable profits and/or the proceeds of an issue of shares constituting core tier 1 capital. Such a transaction would of course be contingent on approval by the Financial Regulator. There is no provision in the preference shares for their conversion into ordinary shares and any arrangement to convert them would have to be negotiated between the State and the relevant bank. This would include the treatment of the warrants in the case of such a conversion.
On Monday 26 April, Bank of Ireland announced a €3.4 billion capital raising exercise. As part of this transaction the State has agreed to convert some €1.7 billion of its Preference shares into Ordinary Shares at face value or par. The State has also agreed to sell its warrants back to the bank for a net €491m in cash. This represents the profit generated on the investment over the past year. The coupon on the remaining preference shares is also increasing from 8% to 10.25%.
As regards Allied Irish Banks, it is currently preparing a capital plan for the Financial Regulator. Once this plan is complete we will have a better indication of the capital raising options open to the bank. As I have outlined previously the State is willing to convert some or all of its Preference Shares, as required, on terms to be agreed that will provide full value for the taxpayer. Post receipt of this plan we will also be in a better position to assess if a buy back proposal for the warrants will be appropriate.
Financial Institutions Support Scheme.
Pat Breen
Question:95 Deputy Pat Breen asked the Minister for Finance if he is in a position to identify all of the bond-holders; the size of their exposure; the extent to which their risk has been insured within financial institutions which the State fully controls; and if he plans to publish that information in broad terms that would be consistent with necessary confidentiality. [17125/10]
Detailed information on bondholders of domestic credit institutions senior and subordinated debt is not available. As is the case for credit institutions generally, credit institutions which the State controls, namely Anglo Irish Bank and Irish Nationwide Building Society do not have access to comprehensive information on the holders of their senior and junior, or subordinated, debt, because such debt is publicly traded and dealt through clearing house systems. Issuers do not have access to the records of those systems and the issuer has no means of establishing the underlying ownership of its bonds at any given time. Unlike in the case of shares, the holders of credit institutions' senior and subordinated debt instruments are not subject to a disclosure regime.
Information on the debt issuance of Anglo Irish Bank and Irish Nationwide Building Society is published by the institution in their annual accounts and on other occasions as appropriate. Information on the debt issuance under the Eligible Liability Guarantee Scheme is also available on the NTMA website (www.ntma.ie). Details of the amounts guaranteed under the schemes are not published on an institution by institution basis because of the commercial sensitivity of such information.
Question No. 96 answered with Question No. 67.
Banks Recapitalisation.
Willie Penrose
Question:97 Deputy Willie Penrose asked the Minister for Finance the amount and the terms of promissory notes transferred to date by the Government to Anglo Irish Bank and Irish Nationwide Building Society; the amount he expects to issue of promissory notes during 2010; when the first payments are due; if the annual payments on these promissory notes will be made from the general fund; and if he will make a statement on the matter. [17200/10]
In line with my statement to the House on 30 March on the banking situation, I subsequently issued Promissory Notes on 31 March to Anglo Irish Bank and Irish Nationwide Building Society. These Notes will ensure that both institutions continue to meet their regulatory capital requirements. The initial principal amount of the Note that issued to Anglo Irish Bank is €8.3bn and to INBS it is €2.6bn. As I indicated in my recent statement, it is likely that Anglo will need further capital in due course but the extent and timing of such further support remains to be determined.
The terms of the Promissory Notes that issued to both institutions on 31 March are substantively the same and, inter alia, provide that 10% of the principal amount will, if demanded by the institution, be paid each year and that the first such payment will fall due for payment from the Central Fund on 31 March 2011. An annual interest coupon, related to Government bond yields, is also payable on the Promissory Notes which the Minister has absolute discretion to pay on the due date or to add to the principal amount. This ensures that the Note meets accounting requirements to be "fair valued" at the principal amount in the annual accounts of each institution, consistent with the regulatory capital requirements. In the event of a winding-up of either institution, the aggregate of the outstanding principal amount and any unpaid interest that has accrued on the institution's Note falls due for immediate payment.
The Deputy may also wish to note that, as indicated in my banking statement of 30 March, the use of Promissory Notes means that the institution's capital requirements are met in a way which spreads the cash payments over a number of years and thereby reduces the funding burden on the Exchequer that would otherwise arise in the current year.
National Asset Management Agency.
Deirdre Clune
Question:98 Deputy Deirdre Clune asked the Minister for Finance his plans for parliamentary oversight of the National Asset Management Agency. [17133/10]
There are substantial provisions already in the NAMA Act dealing with transparent reporting by NAMA and oversight of NAMA by the Oireachtas. This subject was extensively debated during the course of the NAMA legislation through the Oireachtas. In particular, the Act provides for NAMA to submit to me quarterly reports, which I shall lay before each House of the Oireachtas, as well as sending a copy to a Committee appointed by the Oireachtas to deal with NAMA. The appointment of such a Committee is a matter for the Oireachtas.
National Pensions Reserve Fund.
Michael D. Higgins
Question:99 Deputy Michael D. Higgins asked the Minister for Finance if he will indicate the recommendations which his Department has made in terms of ethical foreign policy to the interdepartmental committee which has been established to examine responsible investment policy. [13334/10]
I announced, during the debate on the Investment of the National Pensions Reserve Fund and Miscellaneous Provisions Act 2009 last March, that the preparation of the draft legislation provided an opportunity to consider once again the position regarding ethical investment of the National Pensions Reserve Fund (NPRF) and that I would establish an Interdepartmental Committee to examine the issues further and to report to me.
The Committee includes representatives of the Ministers for the Environment, Heritage and Local Government, Enterprise, Trade and Employment and Foreign Affairs, as well as officials from my Department and representatives of the National Treasury Management Agency as Manager of the NPRF. I understand that the Committee's report is now complete. I will be considering the report while having regard to the role of the NPRF in any measures that may be required to recapitalise the banks, which I announced on 30 March 2010.
National Asset Management Agency.
Caoimhghín Ó Caoláin
Question:100 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the criteria that were applied in the tendering process for auditing firms to the National Asset Management Agency; his views following the questions that are now being asked about some of those auditing firms; if that tendering process served its purpose or if the contracts should be re-advertised. [17093/10]
In accordance with public procurement procedures, the selection of a particular service provider must be advertised in accordance with standard procurement processes through www.etenders.gov.ie, the website for Irish public tenders. I am advised that the process in respect of all service providers for NAMA was fully compliant with public procurement procedures.
It is important to note that under public procurement procedures, a firm or company cannot be excluded from the process unless that firm is conflicted or has been convicted of an offence in relation to professional misconduct or otherwise been guilty of proven grave professional misconduct. To exclude any firm on grounds that are not in accord with procurement regulations could result in sanction from the EU Commission or lead to the excluded firm taking legal action on foot of the exclusion. The Deputy raised certain issues in relation to audit during the recent Dáil questions on banking developments. As I agreed, these questions have been brought to the attention of the banking inquiry, in the context of its preliminary investigation into the crisis in the banking sector in Ireland. The views of NAMA have also been sought.
Small Business Finance.
Jan O'Sullivan
Question:101 Deputy Jan O’Sullivan asked the Minister for Finance if he will comment on the current small and medium enterprise lending environment; his views on proposals which would ameliorate this lending environment; the discussion he has had with the Department of Enterprise, Trade and Employment regarding the possibility of implementing an SME working capital loan guarantee scheme; the level of funding that is to be allocated to any such scheme for 2010 and 2011; and if he will make a statement on the matter. [17213/10]
The third Mazars report on lending to SMEs, which covers the period from October to December 2009, was published last week. The report showed that credit applications in number and value terms rose slightly in the last quarter of 2009 over the previous quarter, which is encouraging. The level of applications for credit would appear to be stabilising and Mazars also reported a small improvement in the overall credit approval rate. However, the reduction in the stock of credit, as repayments exceed new credit, and in credit quality reported by the banks remains a concern for the Government. To address this concern, I announced earlier this month that AIB and Bank of Ireland are to make available a minimum of €3 billion each for new or increased credit facilities, including working capital targeted at SMEs, in the real economy in each of the next two years.
The recently established Credit Review Office is available to review banks' decisions to refuse credit to small and medium enterprises (SMEs). It will provide an independent opinion of the banks' decisions on whether the credit should have been granted or not. SMEs can also seek a review of a decision to reduce or withdraw credit. In addition to dealing with individual cases, the credit review system will examine the credit policies and practices of the banks in respect of SMEs. This will help me to decide what further action might be necessary to secure the flow of credit. I intend to publish the analysis from the review process so that the performance of the banks participating in NAMA will be clear to all.
Work is under way within the Department of Enterprise, Trade and Employment on the examination of a possible scheme of loan guarantees and my officials have held a number of discussions with officials of that Department on the subject. Key concerns being addressed include the extent to which such a scheme would increase lending to SMEs (as against enhancing security for the banks) and the extent of taxpayer exposure and I understand that the work is nearing completion.
Banks Recapitalisation.
James Bannon
Question:102 Deputy James Bannon asked the Minister for Finance the implications of having to find the recapitalisation money for Anglo Irish Bank and a building society (details supplied) from the annual budget over the coming years, as determined by the recent EUROSTAT decision. [17122/10]
On 31 March this year the Government issued promissory notes to Anglo Irish Bank and Irish Nationwide Building Society for €8.3 and €2.6 billion respectively to help meet their capitalisation requirements over the coming years. Although the effect of this is to increase government debt by €10.9 billion in 2010 there will be no actual borrowing associated with these transactions for 2010. The reason the full amount is included in the 2010 figures — despite the fact that the money will not be borrowed in that year — is because accounting rules state that one must recognise a debt in the period in which it arises.
From 2011 the Government will begin to borrow the funds in equal tranches over the next ten to 15 years to meet the requirements of the promissory notes. This will result in increased Exchequer borrowing of approximately €1.1 billion for each of these years. The associated borrowing costs have been estimated by the NTMA to be approximately €50 million per each billion borrowed. In the context of the overall Budgetary position such an amount is manageable.
The recapitalisation of these institutions have been made pending the agreement of the respective restructuring plans with the EU Commission. Until these restructuring plans have been agreed it is not appropriate to include these in any measure of the General Government Deficit; thus the existing Budget Consolidation Plan stands. As such, they have been classified as financial transactions, and this decision can be reviewed when further information is available. The decision to recapitalise these institutions was taken by the Irish Government and not by Eurostat. This was necessary to ensure that the institutions complied with regulatory capital requirements.
Question No. 103 answered with Question No. 92.
Tax Yield.
Catherine Byrne
Question:104 Deputy Catherine Byrne asked the Minister for Finance if the trends in the Exchequer returns to date in 2010 give confidence that the end of year targets will be achieved; and if he will make a statement on the matter. [17129/10]
Kathleen Lynch
Question:112 Deputy Kathleen Lynch asked the Minister for Finance if he will comment on the end-of-March quarterly Exchequer returns which showed a revenue shortfall of more than €1.2 billion compared to the same period last year; and if he will make a statement on the matter. [17197/10]
I propose to take Questions Nos. 104 and 112 together.
At end-March 2010 the Exchequer deficit was €3.9 billion compared to €3.7 billion at end-March 2009. This was broadly in line with my Department's expectations for the first quarter of the year. Tax receipts at €7.2 billion, were 15% below the level collected to end-March of 2009 and €266 million or 3.5% below the profile for the period. A significant year-on-year decline in tax receipts was expected in the initial months of 2010. This decline is expected to moderate as the year progresses with overall tax revenues forecast to end the year 6% down on 2009. The tax revenue target for 2010 is just over €31 billion. My Department's budget day forecast anticipated that the economy would return to growth in the second half of the year and that this would have a positive impact on tax performance. More recent forecasts from others would support this view of the economy.
Net voted expenditure at €10.7 billion was down some €1 billion year-on-year at end-March. This is clear evidence that the expenditure reduction measures introduced by the Government are having the desired effect in controlling public expenditure. Net voted expenditure was down €225 million on profile to end-March, largely due to timing issues. Departments are expected to adhere to the allocations for 2010 as set out in the Revised Estimates Volume. Overall, tax and expenditure performance to date are broadly in line with the budgetary plan as set out in Budget 2010. My Department continues to analyse the emerging trends, however, at this stage of the year I have no reason to change the outlook for the year as a whole.
Banking Sector Regulation.
Joe Costello
Question:105 Deputy Joe Costello asked the Minister for Finance the position on talks regarding the investment by a private equity firm (details supplied) into an building society; and if he will make a statement on the matter. [17232/10]
I have, as have my officials, on many occasions discussed the issue of private investment in the banks with the senior executives of the covered institutions. I have also had some discussions with representatives of potential investors and I understand that some covered institutions have also engaged in such discussions. I note the recent success of this strategy by the Bank of Ireland's placing to private institutional investors announced on Monday morning as well as a rights issue underwritten by the private sector.
I understand from the building society that it is in talks about a potential investment however these talks are at an early stage. The Deputy will appreciate that much of this information is received in confidence and is market sensitive and is a matter in the first instance for the institutions themselves. Finally the ability of a covered institution to undertake any transaction and the form of that transaction is heavily dependent on the restructuring plan for the institution. This is still at an early stage for this institution.
Tobacco Smuggling.
Pat Rabbitte
Question:106 Deputy Pat Rabbitte asked the Minister for Finance if a Garda file has yet been sent to the Director of Public Prosecutions, arising from the seizure of 120 million cigarettes at Greenore, County Louth in October 2009; the estimated value of the cigarettes seized; if the vessel, alleged to have been involved in the incident, is still detained; and if he will make a statement on the matter. [13004/10]
I wish to advise the Deputy that Operation Samhna resulted in the seizure of a consignment of 120.3m cigarettes with an estimated retail value of €46.7 million and revenue at risk of €40.7 million at Greenore Port Co. Louth in October 2009. The Operation was led by the Revenue Customs Service, and supported by An Garda Síochána, the Criminal Assets Bureau, the Irish Naval Service and the Air Corps. Officers from Her Majesty's Revenue and Customs and the Police Service of Northern Ireland were also present.
The investigation of the offence and the completion of the report for the Director of Public Prosecutions are matters that are proper to the Revenue Commissioners who have primary responsibility for tackling cigarette smuggling. In this regard, I am informed by the Revenue Commissioners that the investigation in this case is continuing. The investigation is being carried out by Revenue Investigators and also involves Investigators from the European Anti Fraud Office (OLAF), who are co-ordinating investigations abroad with the relevant authorities in the Philippines, is continuing. In this regard, a team involving officers from Revenue and OLAF have already visited the Philippines where they instigated the gathering of the necessary information.
A Mutual Legal Assistance request was sent to the authorities in the Philippines at the early stages of the investigation and a supplementary request has recently followed in relation to the gathering of the additional evidence. A response to both the original and supplementary request is awaited. In this regard, it is envisaged that the Revenue and OLAF team of investigators will again visit the Philippines in the immediate future with a view of expediting the official responses to both requests.
I am further informed by the Revenue Commissioners that the vessel, the M/V Anne Scan, that was involved in the conveyance of the cigarettes to Ireland and which was seized under the Customs Acts, was subsequently released on 6 November 2009 on payment of a compromise sum after it had been established that neither the owners of the vessel nor the company to whom it had been first leased for chartering purposes had any involvement in the smuggling operation.
National Asset Management Agency.
Michael D. Higgins
Question:107 Deputy Michael D. Higgins asked the Minister for Finance the structure and investors in the National Asset Management Agency special purpose vehicle; and if he will make a statement on the matter. [17231/10]
The NAMA SPV structure has a subscribed capital of €100m. As explained to the Dáil at the time of the legislation, and subsequently agreed with the EU, 49% of this capital was advanced by NAMA and 51% by private investors. Three private investors, namely, Irish Life Investment Managers, New Ireland Assurance and a group of clients of Allied Irish Banks Investment Managers, have each invested €17m in the vehicle. It is important to note that in each case the beneficial owners of the investment are pension funds or other clients of these investment companies and not the parent credit institution.
The SPV has been established in accordance with Eurostat rules. The Board of the SPV is chaired by the CEO of NAMA and has three NAMA nominated directors with the private investors retaining the right to nominate a further three directors. Thus the SPV is structured in such a manner that NAMA representatives will maintain an effective veto over decisions of the SPV Board.
Expenditure Review Group.
Joe Carey
Question:108 Deputy Joe Carey asked the Minister for Finance if he plans to request a further report from the special group on public service numbers and expenditure programmes in 2010. [17131/10]
There are no plans to reconvene the special group in 2010.
Financial Institutions Support Scheme.
Willie Penrose
Question:109 Deputy Willie Penrose asked the Minister for Finance the progress made to date with respect to the viability and business plans for the credit institutions covered by the bank guarantee submitted to the EU Commission for consideration; when he expects opinions to be issued by the Commission in relation to each of the credit institutions concerned; and if he will make a statement on the matter. [17199/10]
Under EU state aid requirements the financial institutions which were recapitalised by the State, Allied Irish Banks, Anglo Irish Bank and Bank of Ireland, were obliged to submit restructuring plans to the European Commission within six-months of receiving Government assistance. The Bank of Ireland Plan was submitted to the Commission on 30 September 2009, the Allied Irish Banks Plan was submitted on 13 November 2009, and the Anglo Irish Bank Plan was submitted on 30 November 2009.
Considerable discussion, dialogue and exchange of information is continuing in respect of the restructuring plans that have already been submitted as the Commission undertake their assessment of the plans in line with the applicable state aid rules. Negotiations in respect of the Bank of Ireland plan are at an advanced stage, and a decision is expected from the European Commission by mid-2010. AIB is adjusting the content of its plan to reflect the new capital requirements announced by the Financial Regulator in March, while Anglo Irish Bank has been asked by the Commission to submit a revised plan by 31 May 2010 accounting for the additional State aid of €8.3 billion which was approved by the Commission on 31 March 2010. It is too early to speculate on when final approval of the restructuring plans for these institutions will be granted by the Commission.
The Deputy may also wish to note that, as I indicated in my Banking statement of 30 March 2010, two further financial institutions — EBS due to its participation in NAMA and INBS because of the recapitalisation measure of €2.7 billion announced in March — must also submit restructuring plans to the Commission in June.
Pat Rabbitte
Question:110 Deputy Pat Rabbitte asked the Minister for Finance the State’s exit strategy from the blanket bank guarantee issued on 30 September 2008; the credit institutions that have issued debt or other liabilities under the extended eligible liabilities guarantee; the amount of liabilities that have been raised to date under the eligible liabilities guarantee, and the maturities; and if he will make a statement on the matter. [17230/10]
In the statement on the banks which I made on 30 March 2010 I announced that I will be seeking the Commission's agreement for a modified extension of the guarantee consistent with a phasing out over a realistic period of time. In line with the State aid approval granted by the European Commission on 20 November 2009 in respect of the Eligible Liabilities Guarantee Scheme, the Commission is due to undertake its six-monthly review of the scheme on 1 June next.
The timing and exact steps in the phasing out of the guarantee will be dependent on a range of factors, most notably the situation in global financial markets, the funding capacity available to Irish institutions, evolving EU policy on exit strategies for State support to the banking sector generally and from guarantees in particular, and financial stability risks to the Irish banking sector. Following the conclusion of the review process with the Commission I intend to make a firm announcement about the future of the guarantee having regard to all of these important issues.
All of the participating institutions, that is Allied Irish Banks, Anglo Irish Bank, Bank of Ireland, EBS, Irish Life and Permanent and Irish Nationwide Building Society, have issued debt or other liabilities under the eligible liabilities guarantee (ELG) scheme. The total amount guaranteed under ELG scheme at 31 March 2010 was €140bn. Of this amount, guaranteed deposits amounted to €108bn. The NTMA provide a comprehensive list on its website of securities which are guaranteed under ELG.
National Solidarity Bond.
Jack Wall
Question:111 Deputy Jack Wall asked the Minister for Finance when he expects the national solidarity bonds, as announced in budget 2010, to be available for subscription; and if he will make a statement on the matter. [17218/10]
In Budget 2010, I announced our intention to launch a National Solidarity Bond, the purpose of which is to allow citizens an opportunity to invest and provide money to the State to stimulate economic recovery and to assist in the maintenance and creation of employment. I provided the necessary legislative basis in this year's Finance Act and I am now happy to inform the House that I will announce details of the National Solidarity Bond tomorrow evening, Thursday 29 April.
Brochures, application forms, terms and conditions and Frequently Asked Questions will be available on the internet and there will be a dedicated telephone line where additional information will be available. After the May Bank Holiday weekend, commencing Tuesday 4 May, the National Solidarity Bond will be available for subscription through the network of 1,200 Post Offices.
Question No. 112 answered with Question No. 104.
Question No. 113 answered with Question No. 62.
Financial Institutions Support Scheme.
Eamon Gilmore
Question:114 Deputy Eamon Gilmore asked the Minister for Finance if his attention has been drawn to any recent interest from foreign investors in taking strategic or controlling stakes in any of the credit institutions covered by the banking guarantee; and if he will make a statement on the matter. [17210/10]
I have informed the House previously that I have discussed the issue of private sector investment in the banks with senior executives of the credit institutions covered by the bank guarantee. I have also had discussions with some representatives of proposed investors, as have the NTMA on my behalf. I understand that some institutions have engaged in such discussions with representatives of potential investors. To date, none of these discussions have resulted in any detailed investment proposal. However, the Deputy will appreciate that much of this information is received in confidence and could be a market sensitive issue for the potential investors.
Banking Sector Regulation.
Aengus Ó Snodaigh
Question:115 Deputy Aengus Ó Snodaigh asked the Minister for Finance his views on the introduction of a bailout tax, as recommended by the International Monetary Fund, to tax financial institutions’ non-deposit liabilities and the sum of profit and compensation to help pay for future bailouts of the banking industry and to prevent the cost from falling on the taxpayer; if he will explore the possibility of introducing an insurance fund for the financial sector, paid for by the financial institutions, to cover future events in the sector; and if he will make a statement on the matter. [17096/10]
The interim IMF report for consideration by G20 Ministers referred to by the Deputy has not been officially published but was widely reported on in the media. The IMF's work in this area is in response to a request made to it by the G20 in 2009 in the context of discussions on how to ensure the financial sector can make a fair and substantial contribution toward paying for burdens associated with government interventions to repair the banking system.
I understand the main proposals in the report are firstly a financial stability contribution to pay for the fiscal cost of any future government support to the financial sector. I understand the proposal involves such a levy being paid by financial institutions initially at a flat rate but eventually refined so that riskier institutions paid more. Secondly the report proposed a financial activities tax which would be levied on the sum of financial institutions' profits and the remuneration they pay.
The question being examined internationally is what taxes or levies can be designed and implemented in an effective manner to ensure that the resources required to deliver future bank resolutions will be available. This is a complex area that is being examined by EU Finance Ministers and in the G20 and I expect the IMF's work and a forthcoming EU study on the subject of bank levies will be useful contributions to that debate. Ireland will of course participate fully in that dialogue.
Question No. 116 answered with Question No. 92.
Financial Services Regulation.
Arthur Morgan
Question:117 Deputy Arthur Morgan asked the Minister for Finance if he will explore the role of credit rating agencies in the financial crisis; if it will be within the remit of the Financial Regulator or the Central Bank Commission to ensure the transparency of the credit rating process; if reliance on these ratings will be reduced over time in view of the fact that at the height of the boom these agencies gave high ratings to highly risky products; and if he will make a statement on the matter. [17091/10]
It is generally accepted that Credit Rating Agencies (CRAs) played a significant role in the current financial crisis and that CRAs provided high ratings to complex products which bolstered investors' confidence in these products. In hindsight, these high ratings were clearly inappropriate. There was also a perception that CRAs were susceptible to conflicts of interest as they also provided advisory services to their clients.
At EU level, this issue was the subject of a number of discussions at the Ecofin Council of Ministers as well as at the European Council. In November 2008, the European Commission adopted a proposal for a Regulation to govern the way in which CRAs could operate in the EU which, following negotiations with the European Council and the European Parliament, was adopted in September 2009. The Regulation introduces rules in a number of areas, such as: CRAs must have sufficient knowledge to enable them rate complex instruments; Their rating methodologies must be disclosed; They must appoint at least two independent directors; CRAs will no longer be able to provide advisory services; and the quality of their ratings must be subject to regular review. Each Member State is required to appoint a competent authority by June 7th next and my Department is currently finalising the arrangements for the Central Bank and Financial Services Authority of Ireland to be the competent authority in Ireland.
I would like to remind the Deputy that under the package of supervisory reforms in the EU, which emanate from the de Larosière Report, the soon to be established European Securities and Markets Authority (ESMA) will be the competent authority throughout the EU for the supervision of CRAs' activities. ESMA is expected to assume this role in early 2011. With regard to the reliance on ratings produced by CRAs, I believe that it is fair to say that investors should no longer rely solely on ratings produced by CRAs. In my view, ratings are one of the elements that can be usefully used by investors when considering investment decisions, but they should not be regarded as the most important determining factor for those decisions.
Parliamentary Questions.
Lucinda Creighton
Question:118 Deputy Lucinda Creighton asked the Taoiseach the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17264/10]
No parliamentary questions have remained unanswered to date due to staff action in 2010.
Redundancy Payments.
Denis Naughten
Question:119 Deputy Denis Naughten asked the Minister for Enterprise, Trade and Employment the reason for the ongoing delay in processing an application to the insolvent fund within his Department from persons who were made redundant from a company (details supplied) in County Roscommon; when the outstanding moneys will be awarded; and if he will make a statement on the matter. [17053/10]
My Department administers the Social Insurance Fund (SIF) in relation to redundancy matters on behalf of the Department of Social and Family Affairs. There are two types of payment made from the SIF — rebates to those employers who have paid statutory redundancy to eligible employees, and statutory lump sums to employees whose employers are insolvent and/or in receivership/liquidation.
I can confirm that my Department received a number of redundancy claims from the company concerned over the period December 2008 and early 2009, including a lump sum claim for the individual concerned. Additional information was requested in relation to this claim in terms of whether the employee met the eligibility criteria of being in insurable employment with the employer for the requisite period. It appears that the former employee does not have the required number of social welfare contributions with the company and on this basis the applicant's claim cannot be processed for payment. My Department has recently written to the individual to advise him of this decision.
Issues relating to the insurability of employees under the Social Welfare Acts must be decided in accordance with the decisions and appeals procedures provided for in the Social Welfare Acts, as administered by the Department of Social and Family Affairs. Where an employee is dissatisfied with a decision as to insurability under these Acts, he or she may appeal this decision to the Social Welfare Appeals Office. The contact address is: The Chief Appeals Officer, Social Welfare Appeals Office, D'Olier House, D'Olier Street, Dublin 2. Notice of Appeal forms are available from the Social Welfare Appeals Office or from local offices of the Department of Social and Family Affairs.
Work Permits.
Denis Naughten
Question:120 Deputy Denis Naughten asked the Minister for Enterprise, Trade and Employment his plans to reform the work permit system; if he will review the conditions on the right to change employer; and if he will make a statement on the matter. [17107/10]
Since 2004, Irish labour market policy has been to ensure that general labour and skills needs are met from within the workforce of the European Union. For strategic skills and labour shortages it is Government policy to issue employment permits for the employment of non-EEA nationals for specific vacancies and in response to employer demand. The various schemes that give effect to such policies were introduced under the Employment Permits Act, 2006. The new schemes constituted a major overhaul of previous arrangements and put the employment permits system on a statutory footing.
A particular focus in developing these schemes was on increasing the rights and protections afforded to migrant workers and the means to ensure redress in the event of exploitative practices. The Act's provisions gave immigrants greater freedom, autonomy and control over their own employment choices by enabling workers for the first time to apply and re-apply for their own permit and allowing workers to change their employer after a period of a year and move to another employment in order to take advantage of better conditions or career options. Last year, my Department issued almost 1,500 employment permits in respect of employees changing to new employers.
The Employment Permits Act 2006 provides for regular review of Ireland's economic migration policies and my Department keeps these policies under review on an on-going basis. My Department condemns any practices by employers that may result in non-compliance with employment rights entitlements or any other mistreatment of employees including those on employment permits. Ireland's Employment Rights Legislation establishes the minimum statutory rights applicable to all people working in Ireland whether they are Irish citizens or otherwise. I would urge all whose employment rights are being breached by an employer or those who know of such exploitation, to contact the National Employment Rights Authority (NERA).
Employment Support Services.
Martin Ferris
Question:121 Deputy Martin Ferris asked the Minister for Enterprise, Trade and Employment the numbers of persons who have been placed in jobs through the work placement programme over the past three years. [17238/10]
The Work Placement Programme was launched on 27th May 2009 and it provides work experience opportunities of up to nine months duration to the unemployed. As of 19th April 2010, 767 people had commenced their placement on the Work Placement Programme and there are a further 1,255 placements currently available.
Parliamentary Questions.
Lucinda Creighton
Question:122 Deputy Lucinda Creighton asked the Minister for Enterprise, Trade and Employment the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17257/10]
Given its wide remit, Ministers in my Department answer well in excess of 1,000 Parliamentary Questions (PQs) each year. Indeed, in 2009 we answered over 2,000 PQs. In that regard, my officials accord a high priority to responding to Oireachtas scrutiny including in their contributions to ministerial responses to PQs.
All parliamentary questions are answered by Ministers on the due date, although in some situations, given the nature of the question posed, it may not always be possible to provide detailed statistical data in the time available to answer the question. In such situations, unless the collation of the material requested requires a disproportionate amount of resources, my Department issues a follow up reply to the Deputy concerned. My Department has processed over 400 parliamentary questions since the industrial action by some Civil Service unions took effect on 4 February, of which we were unable to fully answer 28 in the detail required.
Public Service Appointments.
Richard Bruton
Question:123 Deputy Richard Bruton asked the Minister for Finance the appointments made by the top level appointments committee in each of the past five years; the number of applicants; the number of applicants from outside the public service in each year; the number of those selected who came from outside the public service; the number that came from outside the Department filling the post distinguishing by the grade post being filled. [17111/10]
The following table shows the information requested by the Deputy.
|
2005 |
2006 |
2007 |
2008 |
2009 |
|
|
No. of TLAC competitions held |
19 |
13 |
24 |
17 |
9 |
|
No. of applicants |
248 |
220 |
448 |
539 |
186 |
|
No. of applicants from outside public service |
7 |
18 |
106 |
150 |
33 |
|
No. selected from outside public service |
0 |
0 |
1 |
0 |
0 |
|
No. selected from outside Department |
7 |
0 |
3 |
3 |
2 |
|
(2 Sec Gen, 5 Asst sec) |
(1 Sec Gen, 1 Dep Sec, 1 Asst Sec) |
(3 Asst Sec) |
(1 Sec Gen, 1 Asst Sec) |
It should be noted that the Top Level Appointments Committee (TLAC) deals with appointments to the Civil Service and not the wider public service. In addition to those selected from outside the public service, three applicants from the wider public service were selected for Civil Service posts in the period.
The Top Level Appointments Committee (TLAC) hold competitions for and advises Ministers and the Government on appointments to Civil Service posts at Secretary General, Deputy Secretary and Assistant Secretary and equivalent levels. Since early 2007 the policy has been that open competitions are held for Assistant Secretary and Deputy Secretary and equivalent posts and more recently this policy has been extended to Secretary General posts, with the exception of a limited number of Secretary General posts which are filled by the Government without a TLAC competition.
Flood Relief.
Ciaran Lynch
Question:124 Deputy Ciarán Lynch asked the Minister for Finance the terms of reference of the Lee Valley catchment area review of flooding; the person who will conduct the review; when same will report; and if he will make a statement on the matter. [17207/10]
The draft Catchment Flood Risk Management Plan (CFRMP) for the River Lee is at public consultation stage. The consultants, Halcrow Group Ireland Ltd., have been appointed to undertake a review of the November 2009 floods for the Rivers Lee and Owenboy. This is a hydrological and hydraulic review, examining, inter alia, rainfall depths and return periods, flood flow paths, extents and probabilities.
The terms of reference reflect the following aspects: Review and catalogue data, and understand the event; Create model boundaries; Run model for validation event; Post process modelling; Event comparison; and reporting and review. The initial review of the modelling is due to take place in mid-Summer. The outputs from this review will be included in the CFRMP for the River Lee.
Tax Code.
Ciaran Lynch
Question:125 Deputy Ciarán Lynch asked the Minister for Finance the taxation applicable to the gratuity paid on retirement to retained firefighters; and if he will make a statement on the matter. [17052/10]
The position is that section 201 of the Taxes Consolidation Act 1997 and Schedule 3 to that Act sets out the legislation in relation to the exemptions that apply to retirement gratuities, and the taxation of any balance after applying these exemptions. The same rules apply to all employees and office holders.
Statutory redundancy payments are exempt from income tax. In addition, ex-gratia redundancy payments in excess of the statutory redundancy amount are exempt from income tax up to certain limits, namely: a basic exemption of €10,160 plus €765 per complete year of actual service in excess of the statutory redundancy; or standard Capital Superannuation Benefit i.e. 1/15th of the person's annual income (average of the last three years) for each year of employment less any tax-free lump sum which is received or receivable under any approved or statutory pension scheme. It is open to the taxpayer to choose whichever relief is of most benefit.
The basic exemption from income tax as outlined above can be further increased by up to €10,000 if the person is not a member of an occupational pension scheme. This can only be claimed if the person has not made any claims in respect of a lump sum received in the previous ten tax years. Any amount of redundancy payment in excess of whichever exemption applies, is liable to income tax. The Revenue Commissioners publication IT21 is a comprehensive guide to understanding how these reliefs apply.
Parliamentary Questions.
Lucinda Creighton
Question:126 Deputy Lucinda Creighton asked the Minister for Finance the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17259/10]
In response to the Deputy's question there are no Parliamentary Questions in my Department which remain unanswered due to staff action to date in 2010. I have been informed by the Office of the Revenue Commissioners that in the same period, seven Parliamentary Questions were asked in relation to individual tax queries which were unanswered due to staff action. The replies stated that due to staff action an answer could not be supplied to the question and no undertaking was given to supply the data requested at a future date.
Fiscal Policy.
Richard Bruton
Question:127 Deputy Richard Bruton asked the Minister for Finance the desired breakdown between spending and taxation of the proposed €2 billion reduction in the current Exchequer deficit in view of the draft public service agreement. [17311/10]
Budget 2010 sets out a consolidation path for the public finances aimed at reducing the General Government Balance to below -3% of GDP by end-2014. The required adjustment in each year over the period is set out in the budgetary documentation. Based on the overall macroeconomic and budgetary forecasts an adjustment of €2 billion relating to current expenditure and/or tax revenue adjustments will be needed in 2011. The precise breakdown of this adjustment is a matter for ongoing determination in the context of my formulation of Budget 2011. While at this stage of the year, I do not intend to comment on the specifics of the 2011 budgetary policy, I did, in Budget 2010, outline a number of areas for consideration in this context. Furthermore, the report of the Special Group on Public Sector Numbers and Expenditure Programmes, the work currently underway regarding Local Authorities and the report of the Commission on Taxation will also have a role to play in the determination of future budgetary policy.
The draft Public Service Agreement provides certainty and stability for public service workers in terms of pay and conditions over the period of the Agreement while providing a sustainable framework to the Government for the agreed delivery and cost of public services over the medium term which will assist in the restructuring and planning of the public finances. Adoption of the Agreement will itself give a measure of certainty about policy and spending that will assist in the process of economic recovery.
Public Sector Pay.
Richard Bruton
Question:128 Deputy Richard Bruton asked the Minister for Finance the conditions that constitute an unforeseen budgetary deterioration in the context of the draft public service agreement. [17312/10]
Richard Bruton
Question:130 Deputy Richard Bruton asked the Minister for Finance if he has committed to the payment of annual pay increments as part of the draft public service agreement. [17314/10]
Richard Bruton
Question:131 Deputy Richard Bruton asked the Minister for Finance if he has committed not to cut the pensions of existing public service pensioners as part of the draft public service agreement. [17315/10]
I propose to take Questions Nos. 128, 130 and 131 together.
Under a process of engagement and discussion between public service employers and the Public Services Committee of the Irish Congress of Trade Unions, facilitated by the Labour Relations Commission, a draft agreement has been reached between the parties which provides for the settlement of the industrial relations dispute in the public service. It is now a matter for individual union members to consider the draft Agreement in the context of the balloting process.
The Agreement provides there will be no further reductions in the pay rates of serving public servants for the lifetime of the Agreement. Increments will continue to be payable. This guarantee is subject to compliance with the terms of the Agreement. In relation to existing public service pensioners, Section 3 of the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, provides that the pay reductions introduced in that Act do not apply to the entitlements of existing public service pensioners or to any person who retires from the public service in 2010. Under the draft Agreement the period of exemption to persons who may retire would be extended by a year. The Agreement also provides that discussions will take place on the method of determining pension increases for existing public service pensioners and current public servants in the context of a review of pay policy in Spring 2011.
The Government has reaffirmed that, if agreed, it will implement the Agreement in absolute good faith. The provision within the Agreement which specifies that the Agreement is subject to no currently unforeseen budgetary deterioration was inserted as a prudent measure and would only be raised in the context of a significant deterioration in the budgetary and economic outlook which would require further corrective action to ensure fiscal sustainability. Adoption of the Agreement will itself give a measure of certainty about policy and spending and help to avoid any such significant deterioration. Under the circumstances, speculation on a specific set of circumstances which is unlikely to arise would be neither helpful nor warranted.
Richard Bruton
Question:129 Deputy Richard Bruton asked the Minister for Finance the reduction in public sector numbers targeted in the draft public service agreement, in total and by sector. [17313/10]
The draft Public Service Agreement, which is subject to ratification by the relevant public service trade unions, notes that reductions in public service staff numbers, along with a range of other initiatives in the area of revised work practices, redeployment etc., could contribute to a more efficient public service, and facilitate the Government's core objective of restoring the public finances to a sustainable position.
This approach is fully in line with the Government's multi-year fiscal consolidation strategy as set out in Budget 2010. In that context, and in particular in the Stability Programme Update of December 2009, the Government indicated the move to a new, more rigorous approach to controlling public service numbers, centring upon the establishment of an agreed annual numbers ceilings, to be managed in accordance with Employment Control Frameworks for each Ministerial Vote Group. Specifically, the Government intends that overall Public Service numbers should be brought down by approximately 13,000 over the period 2009-2012 broken down as indicated on a sectoral basis in the following table.
|
Functional Classification |
Projected End-March 2009 |
Projected End 2012 — Ceilings |
Difference |
|
Total Staff |
319,235 |
306,191 |
-13,044 |
|
Civil Service |
39,121 |
36,595 |
-2,526 |
|
Health Sector |
111,800 |
106,060 |
-5,740 |
|
Education |
94,757 |
94,754 |
-3 |
|
Justice |
15,677 |
14,746 |
-931 |
|
Defence |
11,169 |
10,706 |
-463 |
|
Local Authorities |
34,178 |
32,150 |
-2,028 |
|
NCSSBs |
12,533 |
11,179 |
-1,354 |
Note: Staff numbers are whole-time equivalents.
The precise ceilings in each area are subject to further Government consideration in certain cases and are, as always, subject to any future Government policy decisions and priorities in regard to public service provision.
Questions Nos. 130 and 131 answered with Question No. 128.
Tax Collection.
Jack Wall
Question:132 Deputy Jack Wall asked the Minister for Finance the reason a person (details supplied) in County Kildare is taxed at the higher tax band; and if he will make a statement on the matter. [17317/10]
I have been advised by the Revenue Commissioners that the person's new employer was notified of the tax credits and standard rate cut-off point applicable to the person concerned on 26 February 2010. In addition, a certificate of tax credits and standard rate cut-off point issued to the person concerned on 26 February 2010. This certificate provides for the person's entitlement to the lower rate band and any tax overpaid by the person concerned since he commenced employment with his employer will be refunded by his employer.
Health Services.
Deirdre Clune
Question:133 Deputy Deirdre Clune asked the Minister for Health and Children if students at a primary school (details supplied) in County Cork will receive an eye examination and a hearing examination during the current school year; and if she will make a statement on the matter. [17051/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Pension Provisions.
Bernard J. Durkan
Question:134 Deputy Bernard J. Durkan asked the Minister for Health and Children if a person (details supplied) in County Meath can avail of early retirement on ill health grounds if offered at present without loss of benefits; and if she will make a statement on the matter. [17280/10]
The employee referred to is a member of the Voluntary Hospital Superannuation Scheme. Subject to certain conditions early retirement on the grounds of ill health is permitted under the scheme rules. A pension and lump sum, calculated in the same way as retirement on age grounds will be paid immediately at retirement provided the member has a minimum of 5 years reckonable service. In addition, where the employee is required to retire on grounds of ill health, a period of notional service may be added. This added service is calculated by reference to the length of actual service and age at retirement. The following table outlines the notional added years available in cases of retirement on grounds of ill health under the scheme rules.
|
Service (Years) |
Award of added years in cases of retirement on grounds of ill health |
|
05 – 10 |
Actual service subject to limit of potential service to age 65 |
|
10 – 20 |
the better of: |
|
Total service not exceeding 20 years, subject to limit of potential service to age 65 or6 2/3 years, subject to potential service to age 60 |
|
|
20+ |
6 2/3 years, subject to potential service to age 60 |
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested in relation to the particular person in question. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Medical Cards.
Sean Sherlock
Question:135 Deputy Seán Sherlock asked the Minister for Health and Children the position regarding a medical card in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [17056/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Misuse of Drugs.
Enda Kenny
Question:136 Deputy Enda Kenny asked the Minister for Health and Children her plans to ban a substance (details supplied) on sale in head shops; the full list of head shop products that she proposes to ban; and if she will make a statement on the matter. [17066/10]
The substances currently being sold in head shops which are due to be declared controlled substances under the Misuse of Drugs Act 1977 include:
synthetic cannabinoids (SPICE products)
benzylpiperazine (BZP) derivatives
mephedrone, methylone and related cathinones
GBL and 1,4 BD
The substance mentioned by the Deputy is not among the list of substances that are to be placed under control. However, the matter will be kept under review.
Nursing Home Services.
Richard Bruton
Question:137 Deputy Richard Bruton asked the Minister for Health and Children when the 100 bed community nursing unit at Raheny, Dublin 5, will open; the reasons for the delay; if the delay is due to funding cutbacks; and if she will make a statement on the matter. [17071/10]
I regret that due to industrial action I am not in a position to provide a substantive response to your Parliamentary Question. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Nursing Homes Support Scheme.
Michael Creed
Question:138 Deputy Michael Creed asked the Minister for Health and Children if she has received a fair deal application from a person (details supplied) in County Cork; when the application will be activated; and if she will make a statement on the matter. [17073/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Long-Term Illness Scheme.
Thomas Byrne
Question:139 Deputy Thomas Byrne asked the Minister for Health and Children if a person who suffers from a condition (details supplied) is entitled to be considered under the long-term illness scheme for free medication. [17109/10]
Under the 1970 Health Act, the Health Service Executive may arrange for the supply, without charge, of medicines and medical and surgical appliances to people with specified conditions, for the treatment of that condition, through the Long Term Illness Scheme (LTI). The LTI does not cover GP fees or hospital co-payments. The conditions are: mental handicap, mental illness (for people under 16 only), phenylketonuria, cystic fibrosis, spina bifida, hydrocephalus, diabetes mellitus, diabetes insipidus, haemophilia, cerebral palsy, epilepsy, multiple sclerosis, muscular dystrophies, parkinsonism, conditions arising from thalidomide and acute leukaemia. There are currently no plans to extend the list of eligible conditions covered by the LTI.
Under the Drugs Payment Scheme, which was introduced in 1999, no individual or family unit pays more than €120 per calendar month towards the cost of approved prescribed medicines. The scheme is easy to use and significantly reduces the cost burden for families and individuals incurring ongoing expenditure on medicines. In addition, people who cannot, without undue hardship, arrange for the provision of medical services for themselves and their dependants may be entitled to a medical card. In the assessment process, the Health Service Executive can take into account medical costs incurred by an individual or a family. Those who are not eligible for a medical card may still be able to avail of a GP visit card, which covers the cost of general practice consultations.
Hospital Staff.
Ciaran Lynch
Question:140 Deputy Ciarán Lynch asked the Minister for Health and Children the plans that are in place to continue the existing services and to implement improvements in view of the imminent retirement of the only consultant paediatrician in Cork University Hospital dealing with approximately 300 children living with Type 1 diabetes; and if she will make a statement on the matter. [17206/10]
I regret that due to industrial action I am not in a position to provide a substantive response to your Parliamentary Question. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Health Services.
Finian McGrath
Question:141 Deputy Finian McGrath asked the Minister for Health and Children if she will support the case of a person (details supplied) in Dublin 9. [17235/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Hospital Waiting Lists.
Pat Breen
Question:142 Deputy Pat Breen asked the Minister for Health and Children if a person (details supplied) in County Clare will be facilitated; and if she will make a statement on the matter. [17241/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. However, I would like to advise the Deputy that the scheduling of patients for hospital treatment is a matter for the consultant concerned in each case and is determined on the basis of clinical need. Should the patient's general practitioner consider that the patient's condition warrants an earlier appointment, he/she would be in the best position to take the matter up with the consultant involved.
Parliamentary Questions.
Lucinda Creighton
Question:143 Deputy Lucinda Creighton asked the Minister for Health and Children the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if she will make a statement on the matter. [17261/10]
A total of 747 Parliamentary Questions were taken by my Department during the period from 3rd March 2010 to 22nd April 2010. Of these, 534 (71.5%) have not been answered due to industrial action by certain staff both within my Department and the Health Service Executive.
Health Services.
Bernard J. Durkan
Question:144 Deputy Bernard J. Durkan asked the Minister for Health and Children if a person (details supplied) in County Kildare will be offered services; and if she will make a statement on the matter. [17283/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Medical Cards.
Bernard J. Durkan
Question:145 Deputy Bernard J. Durkan asked the Minister for Health and Children when a medical card will be renewed in the case of a person (detail supplied) in County Kildare; and if she will make a statement on the matter. [17284/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Hospital Services.
Bernard J. Durkan
Question:146 Deputy Bernard J. Durkan asked the Minister for Health and Children when a procedure will be offered in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [17285/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Health Services.
Bernard J. Durkan
Question:147 Deputy Bernard J. Durkan asked the Minister for Health and Children if home help can be offered to a person (details supplied) in County Kildare; and if she will make a statement on the matter. [17286/10]
I regret that due to industrial action I am not in a position to provide a substantive response to your Parliamentary Question. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Medical Cards.
Bernard J. Durkan
Question:148 Deputy Bernard J. Durkan asked the Minister for Health and Children when a medical card will issue in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [17287/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Health Services.
Caoimhghín Ó Caoláin
Question:149 Deputy Caoimhghín Ó Caoláin asked the Minister for Health and Children, further to Parliamentary Question No. 166 of 10 February 2010, when a reply will issue from the Health Service Executive. [17319/10]
I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply the information requested. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Accident and Emergency Services.
Emmet Stagg
Question:150 Deputy Emmet Stagg asked the Minister for Health and Children if her attention has been drawn to the concerns expressed by the Irish Association for Medicine regarding the recruitment of non-consultant hospital doctors at Naas General Hospital and the provision of 24-hour, seven-day a week accident and emergency cover and if she will give a commitment that accident and emergency services will not be curtailed at Naas General Hospital. [17326/10]
Subject to overall parameters set by Government, the Health Service Executive (HSE) has responsibility for determining the composition of its staffing complement. In that regard, it is a matter for the Executive to manage and deploy its human resources to best meet the requirements of its Annual Service Plan for the delivery of health and personal social services to the public. I wish to advise the Deputy that due to industrial action affecting the Health Service Executive it is not possible for the Executive to supply information in relation to services at Naas General Hospital. If this matter remains of continuing concern to you, however, I would invite you to raise it with me again in due course.
Parliamentary Questions.
Lucinda Creighton
Question:151 Deputy Lucinda Creighton asked the Minister for Transport the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17266/10]
There are 23 Parliamentary Questions which have remained unanswered in the Department of Transport, due to industrial action by staff.
Departmental Agencies.
Bernard J. Durkan
Question:152 Deputy Bernard J. Durkan asked the Minister for Transport if the National Roads Authority raises and provides its own funding independently of Government and his budget; and if he will make a statement on the matter. [17279/10]
Under Section 24 of the Roads Act 1993, as amended, the Government provides Exchequer funding to the National Roads Authority (NRA) to discharge its functions under that Act. In addition the NRA generates some additional funding from toll revenue and other sources of income. Information on these is available in its Annual Report & Accounts. The Accounts for 2008 have been placed in the Oireachtas Library. Once the Controller and Auditor General signs off the 2009 Annual Report and Accounts, I will arrange for these to be placed in the Oireachtas Library.
The NRA has also been given a mandate under Transport 21 to raise private funding for investment in national roads through PPPs. To date it has raised over €2 billion in private investment for nine toll-based PPP projects and has been authorised to raise a further €1 billion through unitary payment — based PPPs.
Citizenship Applications.
Michael Ring
Question:153 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform when a person (details supplied) in County Mayo will be approved Irish citizenship. [17054/10]
A valid application for a certificate of naturalisation from the person referred to in the Deputy's Question was received in the Citizenship Division of my Department in September 2007.
All valid applications are dealt with in chronological order as this is deemed to be the fairest to all applicants. The average processing time from application to decision is now at 26 months. More complicated cases can at times take more than the current average, while an element of straight forward cases can be dealt with in less than that timescale. Officials in the Citizenship Division inform me that processing of the application is at an advanced stage and the file will be submitted to me for a decision in due course.
The length of time taken to process each application should not be classified as a delay, as the length of time taken for any application to be decided is purely a function of the time taken to carry out necessary checks. There is a limit to the reduction in the processing time that can be achieved as applications for naturalisation must be processed in a way which preserves the necessary checks and balances to ensure that it is not undervalued and is only given to persons who genuinely satisfy the necessary qualifying criteria.
Detention Centres.
Joe Carey
Question:154 Deputy Joe Carey asked the Minister for Justice, Equality and Law Reform if he will clarify his commitment to develop a new national children detention facility at Oberstown near Lusk, County Dublin; and if he will make a statement on the matter. [17062/10]
Significant progress has already been made in the development of the new national children detention facilities. Concept designs and sketch designs completed by the Office of Public Works (OPW) have been approved by the Steering Committee established to oversee progress on the project. At its meeting on 1st April 2010, the Steering Committee considered the planning requirements for the project and consultation is now under way with the Office of the Chief State Solicitor and the Office of the Attorney General with a view to identifying the most appropriate planning process for the project.
Work is due to start shortly on developing detailed designs in consultation with the various stakeholders so that Request for Tenders documentation for the construction phase of the project can be prepared. Sufficient capital funding has been provided this year to progress the planning and design of the facilities. The completion date for the new facilities will be subject to the planning process to be followed but it is hoped, subject to any requirements that the planning authorities may have, that Phase 1 of the project could be completed by mid-2013.
Funding for the project has been earmarked in the National Development Plan. As with all capital projects of this nature, expenditure will be reviewed on an ongoing basis to ensure value for money and tendering for the construction of the new facilities will be subject to Government approval and to the necessary funding being made available.
Crime Levels.
Joe Carey
Question:155 Deputy Joe Carey asked the Minister for Justice, Equality and Law Reform the number of crimes committed by persons awaiting trial and granted bail by the courts between 2007 and 2009, inclusive; and if he will make a statement on the matter. [17063/10]
Joe Carey
Question:156 Deputy Joe Carey asked the Minister for Justice, Equality and Law Reform the type of crimes committed by criminals on bail from 2007 to 2009, inclusive; and if he will make a statement on the matter. [17064/10]
I propose to take Questions Nos. 155 and 156 together.
The Garda Síochána Act 2005 makes provision for the compilation and publication of crime statistics by the Central Statistics Office, as the national statistical agency, and the CSO has established a dedicated unit for this purpose. I have requested the CSO to provide statistics directly to the Deputy.
Garda Training.
Thomas P. Broughan
Question:157 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform the number of training places and courses available to gardaí at the Training Centre, Templemore, County Tipperary and at Garda Headquarters, Dublin; the number who attended such courses; the capacity for each year from 2001 to date in 2010; the Garda budget allocated to fund ongoing training courses for gardaí for each of the years from 2002 to date in 2010; the duration of each course; and if he will make a statement on the matter. [17074/10]
I have requested the information sought by the Deputy from the Garda Commissioner. I will write to the Deputy directly when this information is to hand.
Garda Recruitment.
Thomas P. Broughan
Question:158 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform, further to Parliamentary Questions Nos. 409, 417 and 418 of 23 March 2010, the cost of training each garda recruit including their pay; and if he will make a statement on the matter. [17077/10]
I am informed by the Garda authorities that it is not possible to provide the individual cost of each Garda recruit. However, the annual cost of running the Garda College, which has responsibility for the training requirements of An Garda Síochána, is approximately €27m (2009).
Thomas P. Broughan
Question:159 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform, further to Parliamentary Questions Nos. 409, 417, 418 and 419 of 23 March 2010, the scientific criteria on which the age limit for recruitment to an Garda Síochána was set at 35 years on physical requirements; and if he will make a statement on the matter. [17078/10]
As I explained in my answer to the earlier Questions referred to by the Deputy, recruitment in An Garda Síochána is governed under the Garda Síochána (Admission & Appointments) Regulations 1988/2005. The recruitment age was considered in 2004 when, on the recommendation of the Garda Commissioner, the maximum recruitment age was increased from 26 to 35 years. This upper age limit of 35 was set having regard to equality legislation and also took into account the following criteria:
(1) The cost of training.
(2) The need for recruits to serve for a sufficient period of time as full members of the service to recoup this cost.
(3) The operational requirements of the service in terms of having an age profile appropriate to the physical demands placed on members in the course of their duty.
Thomas P. Broughan
Question:160 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform, further to Parliamentary Questions Nos. 409, 417, 418 and 419 of 23 March 2010, if he will stand over the age limits set for retirement and recruitment in An Garda Síochána and assure Dáil Éireann that these regulations do not contravene Article 40 of the Constitution; and if he will make a statement on the matter. [17079/10]
The current recruitment and retirement ages for the Garda Síochána are intended to reflect the characteristics and requirements of the Force, and it is of course the case that these ages have been set at a level which is understood to be consistent with national and EU law.
Thomas P. Broughan
Question:161 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform, further to Parliamentary Questions Nos. 409, 417, 418 and 419 of 23 March 2010, when the case referred to will be brought before the Supreme Court; and if he will make a statement on the matter. [17080/10]
The appeal referred to by the Deputy was taken by the Equality Tribunal, an independent statutory agency, and it is up to that body to progress the appeal through the courts.
Legal Fees.
Thomas P. Broughan
Question:162 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform the cost in legal fees to the taxpayer in the case of a person (details supplied) v the Garda Commissioner and the Minister for Justice, Equality and Law Reform over their forced retirement on age grounds at 60 years of age; and if he will make a statement on the matter. [17081/10]
The Chief State Solicitor Office (CSSO) acts on my behalf in civil actions involving my Department and all costs in relation to legal advice or assistance given to my Department are borne by the Vote of the CSSO.
Maintenance Payments.
Willie O'Dea
Question:163 Deputy Willie O’Dea asked the Minister for Justice, Equality and Law Reform when he will sign the new regulations to enable arrears of maintenance payment to be enforced; if he is satisfied that these regulations are sufficient to enable arrears to be enforced; and if not, if he has any contingency plan. [17089/10]
There are a number of provisions in the law for ensuring that payments continue to be made by spouses in support of their dependent spouses and children. They include enabling powers for the courts to order attachment of the earnings of a debtor spouse, to order the securing of payments to the maintenance creditor, to order the payment of lump sums and to order arrears of maintenance to be paid by instalments.
While the law generally operates effectively in this area, I am aware of difficulties in some cases because of the effect of a judgment of the High Court last year relating to the Enforcement of Court Orders Act 1940. The Enforcement of Court Orders (Amendment) Act 2009 made changes to sections 6 (imprisonment in the case of non-payment of debt) and 8 (imprisonment relating to non-payment of maintenance) of the 1940 Act consequent on that judgment in accordance with legal advice. I can advise the Deputy that I am currently in consultation with the Attorney General with a view to developing early proposals for amendments in respect of maintenance enforcement.
Garda Stations.
Michael Creed
Question:164 Deputy Michael Creed asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the substandard Garda accommodation at a location (details supplied) in County Cork; if it is proposed to rent additional accommodation to address this issue; and if he will make a statement on the matter. [17112/10]
I regret that the information requested by the Deputy is not readily to hand. I will write to the Deputy as soon as it is available.
Parliamentary Questions.
Lucinda Creighton
Question:165 Deputy Lucinda Creighton asked the Minister for Justice, Equality and Law Reform the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17262/10]
All Parliamentary Questions received were answered. I presume the Deputy is referring to Parliamentary Questions which, due to the recent industrial action, were responded to by way of an interim reply. I can inform the Deputy that to date in 2010, a total of 1,842 Parliamentary Questions have been answered by me. Approximately 370 of these require further information to be compiled, which my Department is in the process of doing.
Asylum Applications.
Bernard J. Durkan
Question:166 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform his views on extending residency in the case of a person (details supplied) in County Galway; and if he will make a statement on the matter. [17275/10]
The person concerned applied for asylum on 24 October 2008. In accordance with Section 9 of the Refugee Act 1996 (as amended), the person concerned was entitled to remain in the State until her application for asylum was decided. Her asylum application was refused following consideration of her case by the Office of the Refugee Applications Commissioner and, on appeal, by the Refugee Appeals Tribunal.
Arising from the refusal of her asylum application, and in accordance with the provisions of Section 3 of the Immigration Act 1999 (as amended), the person concerned was notified, by letter dated 13 January 2010, that the Minister proposed to make a Deportation Order in respect of her. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why a Deportation Order should not be made against her. In addition, she was notified of her entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations 2006 (S.I. No. 518 of 2006). Representations were received on behalf of the person concerned.
The case file of the person concerned, including all representations submitted, will now be considered under Section 3(6) of the Immigration Act 1999 (as amended) and Section 5 of the Refugee Act 1996 (as amended) on the prohibition of refoulement. When this consideration has been completed, the case file of the person concerned will be passed to me for decision. Once a decision has been made, this decision and the consequences of the decision will be conveyed in writing to the person concerned.
Residency Permits.
Bernard J. Durkan
Question:167 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position regarding an application for residency in the case of a person (details supplied) in County Meath; and if he will make a statement on the matter. [17276/10]
I wish to inform the Deputy that I am having inquiries made on the current status in the State of the person in question. I will write directly to the Deputy in this regard in the very near future.
Visa Applications.
Bernard J. Durkan
Question:168 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform if a holiday visa will be extended in the case of a person (details supplied) in County Kildare on health grounds; and if he will make a statement on the matter. [17277/10]
I have been informed by the Irish Naturalisation and Immigration Service (INIS) that the person mentioned by the Deputy has not contacted my Department in relation to an extension of their permission to remain in the State. In accordance with the immigration laws of the State the person mentioned is required to leave the State on expiry of their visitors condition. However, once outside the State there is nothing to prevent them from re-entering the State. It is the policy of my Department not to extend a permission to remain to persons who are admitted for a period of 90 days or less on a short stay visit, save in very exceptional and unforeseen circumstances.
Residency Permits.
Bernard J. Durkan
Question:169 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position regarding an application for residency in the case of a person (details supplied) in County Meath; and if he will make a statement on the matter. [17278/10]
I wish to inform the Deputy that I am having inquiries made on the current status in the State of the person in question. I will write directly to the Deputy in this regard in the very near future.
Crime Levels.
Emmet Stagg
Question:170 Deputy Emmet Stagg asked the Minister for Justice, Equality and Law Reform the crime detection rate by Garda division in each of the years 2007 to 2009. [17325/10]
The Garda Síochána Act 2005 makes provision for the compilation and publication of crime statistics by the Central Statistics Office, as the national statistical agency, and the CSO has established a dedicated unit for this purpose. I have requested the CSO to provide statistics directly to the Deputy.
Consular Services.
Fergus O'Dowd
Question:171 Deputy Fergus O’Dowd asked the Minister for Foreign Affairs the response by each Irish embassy or consulate by location regarding the manning of out of hours service provided to the public by each such embassy or mission during the recent aviation crisis; the number of calls received; if emergency funding was requested and provided; the policy regarding the way medical queries were dealt with; and if he will make a statement on the matter. [17068/10]
The disruption to international aviation which resulted from the emission of volcanic ash from the Icelandic volcano Eyjafjallajökull was unprecedented. As the Deputy is aware, airlines are legally responsible for the provision of accommodation and subsistence for stranded passengers under EU Regulation 261/2004. However, it rapidly became clear that because of the shutdown of European airspace and the huge numbers of stranded passengers affected that many of the airlines simply could not cope with the situation and that the State would have to intervene.
It is not possible to give an accurate figure on the number of Irish citizen stranded, however, following discussions with the Irish Travel Agents Association (ITAA) and based on media reports it is estimated that the figure was somewhere between 15,000 to 30,000.
My Department provides a full time consular emergency service both in Dublin and in all our missions abroad. This service can be accessed abroad after normal office hours by phoning the local Embassy/Consulate and obtaining the mission duty officer number or alternatively by leaving a message on the answer machine which is checked regularly. I am satisfied that this service was fully operational during the recent disruption in aviation transport, including at the Embassy in Madrid, which operated a full 24-hours duty service, logged all contacts made throughout the weekend and, I am assured, responded promptly to all calls received. In addition to this regular service, I decided on Sunday 18 April, in response to the growing disruption and increasing number of citizens stranded abroad, to activate the Department's Consular Crisis Centre, based in Dublin.
Staff in the Crisis Centre and our overseas Missions went to considerable effort over the period of the disruption to assist our citizens affected by the travel disruption. It is estimated that our Missions, which were in the front line of dealing with the huge numbers of distressed Irish people on the ground and who worked around the clock, received in excess of 4,000 telephone contacts over the period of the disruption. Our Embassy and Consulates in Spain alone are believed to have received about 1,500 calls. In Dublin, the Consular Crisis Centre received 2,637 calls.
Our offices provided practical advice and information on accommodation, on over-land transport options, including international train and bus and ferry connections and car rental options, and, where possible, information on availability. The travel advice on the Department's website was regularly updated late into the evenings and was widely regarded as providing the most comprehensive and authoritative information for Irish travellers seeking to return home.
Our Embassies also assisted Irish citizens to get access to medicines, replenishing supplies of prescription drugs and medical treatment for those with specific health needs and the advice given concerning the faxing of Irish prescriptions to local practitioners appeared to work well. My Department provided limited emergency funding to a number of citizens who were in dire financial and medical need subject to the usual strict conditions relating to the advance of State funds.
I would like to take this opportunity to pay tribute to the efforts of all those in my Department at home and abroad and to our Honorary Consuls and their staff who did so much to provide support, reassurance and advice to those trying to get home during the recent travel disruption. Their performance was representative of the public service at its best.
Parliamentary Questions.
Lucinda Creighton
Question:172 Deputy Lucinda Creighton asked the Minister for Foreign Affairs the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17260/10]
There are two parliamentary questions outstanding. PQ 6455/10 (relating to portable electrical equipment) and part of PQ12976/10 (a list of people who have participated in election monitoring missions since 2003) remain unanswered as a consequence of industrial action to date in 2010. Replies to the Deputies concerned are currently being finalised by my Department, and will be forwarded at the earliest opportunity.
Lucinda Creighton
Question:173 Deputy Lucinda Creighton asked the Minister for Art, Sports and Tourism the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if she will make a statement on the matter. [17265/10]
No parliamentary questions have remained unanswered due to staff action to date in 2010.
National Drugs Strategy.
Thomas P. Broughan
Question:174 Deputy Thomas P. Broughan asked the Minister for Community, Rural and Gaeltacht Affairs the names of all community organisations based in Dublin 5, 13 and 17 receiving funding under the national drugs strategy; the funding received by these organisations in 2008 and 2009; the funding allocated for 2010; the source of this funding; and if he will make a statement on the matter. [17075/10]
Details of funding for community-based projects supported by my Department through the Dublin North East Local Drugs Task Force — and which operate in the areas of Dublin 5, 13 and 17 — are set out in the table.
|
Name of Organisation |
Project Name |
2008 funding received |
2009 funding received |
2010 funding allocated |
|
€ |
€ |
€ |
||
|
Darndale Belcamp Resource Centre |
MIC Project |
199,517 |
131,512 |
172,738 |
|
Ana Wim Kilmore Drugs Awareness Project |
Ana Wim Outreach Service |
86,351 |
85,057 |
80,805 |
|
Bonnybrook/Fairfield/Riverside Parent Support Group |
Parent Support Group |
36,275 |
71,462 |
67,889 |
|
TravAct |
Traveller Support Group |
48,648 |
24,324 |
46,216 |
|
Howth Peninsula Drugs Awareness Group |
Howth Peninsula DA Group |
71,375 |
70,306 |
62,221 |
|
KCCP |
Kilbarrack Coast Community Project |
0 |
20,000 |
45,879 |
|
The DALES Centre |
Darndale Drug Awareness Group (2 projects) |
21,979 |
10,835 |
70,685 |
|
Donnycarney Youth Project |
Donnycarney Youth Project |
37,500 |
0 |
70,361 |
|
Howth Peninsula Drugs Awareness Group |
Howth Peninsula DA Group (EN) |
49,904 |
58,700 |
46,574 |
|
St Monica’s Community Council/ Edenmore Drugs Intervention Team |
Edenmore Youth & Family Support |
79,500 |
60,098 |
74,393 |
Parliamentary Questions.
Lucinda Creighton
Question:175 Deputy Lucinda Creighton asked the Minister for Community, Rural and Gaeltacht Affairs the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17254/10]
As of 23 April 2010, there were no Parliamentary Questions remaining unanswered due to the circumstances referred to by the Deputy. For the sake of completeness, it should be noted that some of the information requested in 4 Parliamentary Questions for reply on 20 April 2010 could not be supplied due to ongoing industrial action in the Western Development Commission, an agency funded from my Department's Vote Group.
Registration of Deaths.
Charles Flanagan
Question:176 Deputy Charles Flanagan asked the Minister for Social and Family Affairs if his attention has been drawn to a recent report suggesting that the provisions of the Civil Registration Act 2004 are not being fully complied with, in particular the registration of the deceased’s date and place of birth and full parents’ names under sections 37 and 41 of the Act; and if he will make a statement on the matter. [17118/10]
The provisions and procedures governing the registration of deaths in Ireland are contained in Part 5 of the Civil Registration Act, 2004. Under the provisions of section 37 of the Act, where a death occurs in the State and the deceased dies in a medical institution or was under a general practitioner's care within a month of the death, a registered medical practitioner must provide a medical certificate of cause of death to a qualified person (normally a relative of the deceased). That person must, within 3 months of the death, register the death by giving to the registrar the particulars required to register the death.
Where a death is referred to a coroner, section 41 of the Act provides that the coroner shall give the appropriate registrar a certificate containing the required particulars of the death. The registrar shall register the death based on the information contained in the certificate. The particulars required to register a death are set out in Part 5 of the First Schedule to the Act. The Schedule sets out the maximum information that may be contained in an entry in relation to a death and, on occasion, there may be particulars that are simply not known or available to the qualified informant or to a coroner.
In cases where a death has been registered without one or more of the required particulars, it is open to any interested party, who has information relating to any omission from an entry, to apply to the Registrar General to complete the entry, pursuant to an inquiry conducted under the provisions of section 65 of the Act.
Social Welfare Benefits.
Michael Ring
Question:177 Deputy Michael Ring asked the Minister for Social and Family Affairs when a person (details supplied) in County Galway will be approved farm assist. [17050/10]
The person concerned has not made a claim for farm assist. However, as he is over 66 years of age, he would not have an entitlement to this payment.
Social Welfare Appeals.
Sean Sherlock
Question:178 Deputy Seán Sherlock asked the Minister for Social and Family Affairs the grounds on which an appeal of an application for a carer’s allowance was turned down in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [17055/10]
I am advised by the Social Welfare Appeals Office that the Appeals Officer, having considered all the available evidence, including that adduced at oral hearing, disallowed the carer's allowance appeal of the person concerned. The Appeals Officer found that whereas he was satisfied that the appellant provides a high level of care to the care recipient he was not satisfied that it has been established that it constitutes full-time care and attention in accordance with relevant Social Welfare Legislation. The Social Welfare Appeals Office functions independently of the Minister for Social and Family Affairs and of the Department and is responsible for determining appeals against decisions on social welfare entitlement.
Pension Provisions.
Olivia Mitchell
Question:179 Deputy Olivia Mitchell asked the Minister for Social and Family Affairs the way the pension of a person (details supplied) in Dublin 14 will be calculated under the new national pensions framework in view of the fact that come retirement they will only have worked and contributed 28 years; if it will be calculated on a percentage basis, that is 93.33% being 28 as a percentage of 30; or if there is another method of calculating same; and if he will make a statement on the matter. [17067/10]
The National Pensions Framework which was launched in March of this year provides for significant State pension reform. The framework includes a number of changes to the State pension, including how pension will be calculated in the future, to make it more transparent, simpler and more equitable for those reaching pension age. Currently the standard qualifying conditions, which require a person to enter insurance ten years before pension age, pay a minimum of 260 contributions at the correct rate and achieve a yearly average of at least ten contributions at the correct rate and achieve a yearly average of at least ten contributions on their record from the time they enter insurance until they reach pension age, must be satisfied.
Two significant changes to the qualification criteria for State pension will be implemented in 2012. The minimum number of paid contributions required for State pension (contributory) will increase from 260 to 520 and social insurance credits will be introduced for people who take time out of the workforce for caring duties.
From 2020 the level of pension paid will be based on the total number of social insurance contributions made by a person over his or her working life. A person will need to make contributions for 30 years to qualify for a maximum pension. Once a person has the minimum number of paid contributions required, he or she will accumulate 1/30th of a pension for each year of contributions up to a maximum 30 years. Upon introduction of the total contributions approach, the maximum number of credits that can be used for pension purposes will be set at 520, equivalent to ten years. For those with contribution shortfalls at pension age, arrangements will be put in place to allow them to receive additional benefit at a later date if they continue to make paid contributions for pension purposes while remaining in work or self-employment. In addition, for those people who wish to postpone drawing down their State pension, arrangements will be put in place to enable them to receive an actuarially increased benefit when they decide to retire.
According to the Department's records, the person concerned will reach pension age of 66 in 2019 and her eligibility for contributory pension will be based on the current qualifying conditions, i.e. a system of averaging will be used to determine the level of pension payable. My Department is not in a position to forecast the level of pension to which a person may be entitled. This service was formerly available but was discontinued for a number of reasons. For example, it is not possible at a given point in time to indicate with certainty what a person's future entitlements might be. Entitlements obviously will depend on the accuracy of their record to date, future employment patterns and contributions made to the social insurance system up until retirement.
Details of the person's full history of individual social insurance contributions can be provided to her on request along with the booklet ‘Working It Out', to assist her in assessing her possible pension entitlement. Alternatively, she may request her contribution record via the Department's website www.welfare.ie and her record will be issued in hard copy. However, the Department plans to implement secure online access for customers to their PRSI contributions record later this year which will allow them to view their contribution records on-screen. This service will enable them to establish their entitlement to a contributory-based pension using the guidelines and step-by-step calculator provided in the ‘Working it Out’ booklets, taking into consideration the combination of their contribution record at that point and their own projected work pattern prior to reaching pension age.
Social Welfare Benefits.
Paul Kehoe
Question:180 Deputy Paul Kehoe asked the Minister for Social and Family Affairs the reason a person (details supplied) has not received their food supplement for diabetes for the past two weeks. [17248/10]
Due to staff action currently being taken in the HSE, I regret that I am unable to provide the information sought by the Deputy.
Parliamentary Questions.
Lucinda Creighton
Question:181 Deputy Lucinda Creighton asked the Minister for Social and Family Affairs the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17263/10]
The number of questions affected in this manner is not readily quantifiable. The establishment of an accurate number would involve significant time and would necessitate the diversion of staff from other work.
Social Welfare Benefits.
Bernard J. Durkan
Question:182 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when rent supplement will issue in the case of a person (details supplied) in County Meath. [17282/10]
Due to staff action currently being taken in the HSE, I regret that I am unable to provide the information sought by the Deputy.
Bernard J. Durkan
Question:183 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs if and when supplementary welfare and rent allowance will issue to a person (details supplied) in County Kildare; and if he will make a statement on the matter. [17289/10]
Due to staff action currently being taken in the HSE, I regret that I am unable to provide the information sought by the Deputy.
Bernard J. Durkan
Question:184 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when rent support will be awarded in the case of a person (details supplied) in County Meath; and if he will make a statement on the matter. [17290/10]
Due to staff action currently being taken in the HSE, I regret that I am unable to provide the information sought by the Deputy.
Bernard J. Durkan
Question:185 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when one parent family allowance will be paid in the case of a person (details supplied) in County Dublin; and if he will make a statement on the matter. [17292/10]
The person concerned is in receipt of one parent family payment since 18 March 2010.
Social Welfare Appeals.
Bernard J. Durkan
Question:186 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when unemployment assistance or jobseeker’s appeal will be heard in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [17293/10]
A claim for jobseeker's allowance by the person concerned was received on 15 August 2009 and was disallowed by a Deciding Officer of the Department on the grounds that his means from capital and his spouse's earnings exceeded the statutory limit. He was notified of this decision on 18 September 2009.
An appeal was opened on 13 October 2009 and I am advised by the Social Welfare Appeals Office, that in accordance with the statutory requirements, the Department was asked for the documentation in the case and the Deciding Officer's comments on the grounds of appeal. The relevant documentation was received on 22 February 2010 and the appeal from the person concerned will be referred to an Appeals Officer for consideration. The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on social welfare entitlements.
Social Welfare Benefits.
Bernard J. Durkan
Question:187 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when unemployment assistance will be paid in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [17294/10]
The person concerned claimed jobseeker's allowance from 1 February 2010. The inspector has completed her report and a decision will be made on the claim this week. The person concerned is being paid supplementary welfare allowance at the maximum weekly rate of €196.00.
Bernard J. Durkan
Question:188 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs if a person (details supplied) in County Kildare has an entitlement to a transition pension; and if he will make a statement on the matter. [17295/10]
According to the records of my Department, the person concerned has not yet applied for a transition pension. In order to have his entitlement formally examined, he should submit a completed application form to this Department for consideration. On receipt of his application, his entitlement will be formally examined and he will be informed of the outcome without delay.
Parliamentary Questions.
Lucinda Creighton
Question:189 Deputy Lucinda Creighton asked the Minister for Defence the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17255/10]
Due to staff on industrial action, a total of six parliamentary questions have not been answered with the required information to date. The Deputies concerned were advised that as a consequence of industrial action, the information sought could not be made available.
Social and Affordable Housing.
Mary Upton
Question:190 Deputy Mary Upton asked the Minister for the Environment, Heritage and Local Government the conditions for eligibility for house purchase loans from local government; and if he will make a statement on the matter. [17108/10]
Two types of house purchase loan are available from local authorities: standard annuity loans targeted at lower income first time buyers and those under the Home Choice Loan scheme which are available to qualifying middle income first time buyers affected by the credit crunch. The terms and conditions governing the operation, including eligibility terms, of annuity mortgages and the Home Choice Loan are set out under the Housing (Local Authority Loans) Regulations 2009 and the Housing (Home Choice Loan) Regulations 2009 respectively. These are available on my Department's website, www.environ.ie.
Proposed Legislation.
Phil Hogan
Question:191 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government the recreational activities that will be controlled and the regulations to be introduced to address invasive species by the Wildlife (Amendment) No. 2 Bill, expected to be published in late 2010, as indicated in the recently published legislative agenda; and if he will make a statement on the matter. [17208/10]
In its ruling in case 418/04, the European Court of Justice found that Ireland had made inadequate legislative provision for the safeguarding of Special Protection Areas and Special Areas of Conservation from pressures arising from recreational activities. Scrambler bikes, quads, off-road vehicles, jet-skis and power boats can, if used inappropriately, result in significant damage to sites and disturbance to birds and protected species. In the context of preparation of the legislation necessary to provide the required protection, my Department is considering the potential and actual threat posed by recreational activities including, but not limited to, those listed above and will make recommendations to me on how best to regulate such activities in order to avoid what is often unintended or inadvertent damage or disturbance. Legislation will also be introduced to control the introduction and spread of invasive species of plants and animals that can threaten native wildlife and have serious detrimental effects on a number of industries including agriculture, forestry, angling and tourism.
Parliamentary Questions.
Lucinda Creighton
Question:192 Deputy Lucinda Creighton asked the Minister for the Environment, Heritage and Local Government the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17258/10]
I, and the Ministers of State at my Department, have replied to some 870 parliamentary questions since mid January 2010. Information available or supplied was constrained by the impact of industrial action in fewer than eight of these replies.
Water Services.
Finian McGrath
Question:193 Deputy Finian McGrath asked the Minister for the Environment, Heritage and Local Government the position regarding a matter (details supplied). [17270/10]
A combination of water conservation measures and investment to increase the supply of water are required to meet additional demand from the Greater Dublin water supply area over the coming years. This approach is reflected in the contracts and schemes included in my Department's Water Services Investment Programme 2010 — 2012, which I published last week. The new investment programme provides for
the commencement of a number of contracts to upgrade some existing water supply facilities and to provide for the abstraction and treatment of water from the Barrow;
the commencement of a number of water conservation contracts focused on mains rehabilitation; and
the continued consideration of options for a scheme to provide a new long-term source to service growth in demand in the Greater Dublin area.
My Department has already provided €2.55 million under the Water Services Investment Programme to Dublin City Council to fund a study of longer term water supply needs and options to meet the needs of the greater Dublin area. The initial study, which was completed in 2006, estimated that the region will require an extra 300 million litres of water per day from a new source by 2031. It also concluded that only two options, taking water from the Shannon or the provision of a sea-water desalination facility in the region, could meet the capacity requirements in the medium and long term.
The City Council has undertaken a Strategic Environmental Assessment Process in relation to these proposals. It has also engaged consultants to prepare a Preliminary Report, which will outline the options for source development, the type of treatment to be provided and how the water should be delivered/distributed, and make recommendations on the optimum solutions. Both the Shannon (with a number of possible options on the location for abstraction) and desalination options will be addressed in this Preliminary Report. It is understood that the Strategic Environmental Assessment Process, which included public consultation, is being brought to a conclusion by the City Council, and it is anticipated that the Preliminary Report will be submitted to my Department in the coming months.
In addition to the provision of required treatment capacity, the Water Services Investment Programme 2010 — 2012 places a strong focus on water conservation measures. This builds on work already undertaken by Dublin City Council, as the lead authority in the Dublin area for the water conservation programme. During the period from 1996 to 2002, the City Council implemented active leakage detection and reduction, carried out some mains renewal and installed leakage control infrastructure. This work, which was funded under my Department's Water Services Investment Programme, resulted in water lost through leakage, and otherwise unaccounted for, being reduced from over 42% to about 28%.
My Department is now funding Dublin City Council's water mains rehabilitation programme, which is designed to build on the work already done and reduce further the level of unaccounted for water. Dublin City Council, as the lead authority in the Dublin region, has to date carried out a suite of five contracts of water main rehabilitation, mainly in the city area, as part of the Dublin Region Water main Rehabilitation Project. The total approved cost of these contracts is almost €16 million. Contract Documents for three further contracts are under examination in my Department and are being dealt with as quickly as possible. In total, the Water Services Investment Programme for 2010-2012 provides for the commencement of contracts under the Dublin Region Water mains Rehabilitation Project to the value of approximately €48 million.
Noel Grealish
Question:194 Deputy Noel Grealish asked the Minister for the Environment, Heritage and Local Government if planning permission is required to sink a well for domestic use; if planning permission is required to sink a well for commercial use at a hotel; and if he will make a statement on the matter. [17318/10]
The sinking of a well, drilling of a bore hole, erection of a pump or construction of a pump house, for the purpose of providing a domestic water supply, or a group water supply scheme in accordance with a plan or proposal approved by the Minister or a local authority for the purpose of making a grant towards the cost of such works, is specifically exempted from the requirement to obtain planning permission (Article 6 and Schedule 2, Part 1, Class 44 of the Planning and Development Regulations 2001). In other circumstances, it is matter for the relevant planning authority, in the first instance, to decide whether the sinking of a well constitutes development, and therefore requires planning permission. Under section 5 of the Planning and Development Act 2000, a question in regard to whether works or structures are or are not development may be referred to An Bord Pleanála.
Waste Disposal.
Emmet Stagg
Question:195 Deputy Emmet Stagg asked the Minister for the Environment, Heritage and Local Government if he has received correspondence regarding the stench emanating from a landfill at Kerdiffstown, Naas, County Kildare; if his attention has been drawn to injunctions and other court hearings involving same; his views on whether the Environmental Protection Agency Acts and Waste Management Acts need to be amended to allow the Environmental Protection Agency to move immediately to close down landfills causing such odour pollution in view of the cumbersome legal route required to take action and will he give a commitment to amend the law in this area. [17327/10]
I have received correspondence in relation to this particular landfill facility, which is licensed to operate by the EPA, as is required under section 39(1) of the Waste Management Act 1996 (as amended). The monitoring of compliance with the conditions of the licence is solely a matter for the EPA and is not one in which the Minister has a role. Indeed, section 60(3) of the Waste Management Act 1996 precludes the Minister from exercising any power or control in relation to the performance, in particular circumstances, by a local authority or the EPA of a function conferred on it. In this particular case, it is therefore a matter for the EPA to ensure compliance with the waste licence issued, and to decide on the appropriate enforcement action in relation to any non-compliance matters. I am satisfied that the powers available to the Agency are sufficient for it to perform its enforcement role effectively.
Parliamentary Questions.
Lucinda Creighton
Question:196 Deputy Lucinda Creighton asked the Minister for Communications, Energy and Natural Resources the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17253/10]
Arising out of staff action to date in 2010, substantive replies to 42 parliamentary questions remain to be completed. My Department is currently engaged in the process of drafting the substantive replies, which will issue as soon as possible.
Rural Environment Protection Scheme.
Enda Kenny
Question:197 Deputy Enda Kenny asked the Minister for Agriculture, Fisheries and Food the details of all REPS payments made in respect of a land holding and herd number (details supplied) in County Mayo. [17070/10]
The following REPS payments issued to the owner of the Herd number supplied prior to 2002:
|
Date |
Amount |
|
€ |
|
|
6-Jan-1998 |
2,640.90 |
|
4-Jul-1998 |
2,640.89 |
|
13-Jan-1998 |
1,236.19 |
|
30-Apr-1999 |
6,058.80 |
|
23-Feb-2000 |
328.19 |
|
7-Apr-2000 |
6,058.80 |
|
28-Feb-2001 |
246.14 |
|
30-Mar-2001 |
6,058.80 |
Enda Kenny
Question:198 Deputy Enda Kenny asked the Minister for Agriculture, Fisheries and Food the reason REPS payments have not yet issued in respect of a person (details supplied) in County Mayo; and if he will make a statement on the matter. [17085/10]
An adjusted plan was requested from the person named in this case. The adjusted plan was received on 12 March 2010, and is currently being processed by my officials.
Parliamentary Questions.
Lucinda Creighton
Question:199 Deputy Lucinda Creighton asked the Minister for Agriculture, Fisheries and Food the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if he will make a statement on the matter. [17252/10]
A review of records indicate it was not possible to answer 66 questions and partial answers could only be provided to 2 other questions.
Higher Education Grants.
Willie Penrose
Question:200 Deputy Willie Penrose asked the Tánaiste and Minister for Education and Science the education grants that are available to one-parent families who are in receipt of one parent family payment and who wish to continue or commence third level education and in particular if they can avail of the third level maintenance grant scheme where they are in receipt of the payment from her Department; and if she will make a statement on the matter. [17088/10]
Financial assistance is available to students under the maintenance grant schemes, which are administered by the local authorities and Vocational Education Committees on behalf of my Department. Students who are entering approved courses for the first time are eligible for grants where they satisfy the relevant conditions as to age, residence, means, nationality and previous academic attainment. A person in receipt of the One-Parent Family Payment may be entitled to a student maintenance grant provided they meet the terms and conditions of the relevant student grant scheme. The decision on eligibility for a student grant is a matter, in the first instance, for the relevant assessing authority, i.e. the applicant's local authority or VEC.
Teacher Training.
Phil Hogan
Question:201 Deputy Phil Hogan asked the Tánaiste and Minister for Education and Science the number of students enrolled for the Bachelor of Education course that commenced in 2009 in St. Patrick’s College, Dublin 9; the number of students enrolled for the 18-month postgraduate course that commenced in February 2010 in this college; the State moneys awarded to this college for the Bachelor of Education course that commenced in 2009; the State moneys awarded to this college for the 18-month postgraduate course that commenced in February 2010; and if she will make a statement on the matter. [17057/10]
Phil Hogan
Question:202 Deputy Phil Hogan asked the Tánaiste and Minister for Education and Science the number of students enrolled for the Bachelor of Education course that commenced in 2009 in Mary Immaculate College, County Limerick; the number of students enrolled for the 18-month postgraduate course that commenced in February 2010 in this college; the State moneys awarded to this college for the Bachelor of Education course that commenced in 2009; the moneys awarded to this college for the 18-month postgraduate course that commenced in February 2010; and if she will make a statement on the matter. [17058/10]
Phil Hogan
Question:203 Deputy Phil Hogan asked the Tánaiste and Minister for Education and Science the number of students enrolled for the Bachelor of Education course that commenced in 2009 in Froebel College, County Dublin; the number of students enrolled for the 18-month postgraduate course that commenced in February 2010 in this college; the State moneys awarded to this college for the Bachelor of Education course that commenced in 2009; the moneys awarded for the 18-month postgraduate course that commenced in February 2010; and if she will make a statement on the matter. [17059/10]
Phil Hogan
Question:204 Deputy Phil Hogan asked the Tánaiste and Minister for Education and Science the number of students enrolled for the Bachelor of Education course that commenced in 2009 in Coláiste Mhuire, Dublin 3; the number of students enrolled for the 18-month postgraduate course that commenced in February 2010 in this college; the State moneys awarded to this college for the Bachelor of Education course that commenced in 2009; the moneys awarded to this college for the 18-month postgraduate course that commenced in February 2010; and if she will make a statement on the matter. [17060/10]
Phil Hogan
Question:205 Deputy Phil Hogan asked the Tánaiste and Minister for Education and Science the number of students enrolled on the Bachelor of Education course that commenced in 2009 in Church of Ireland College of Education, Dublin 6; the number of students enrolled for the 18-month postgraduate course that commenced in February 2010 in this college; the State moneys awarded to this college for the Bachelor of Education course that commenced in 2009; the moneys awarded to this college for the 18-month postgraduate course that commenced in February 2010; and if she will make a statement on the matter. [17061/10]
I propose to take Questions Nos. 201 to 205, inclusive, together.
The five State funded Colleges of Education each provide a Bachelor of Education course and, with the exception of the Church of Ireland College of Education, an 18-month postgraduate course. Depending on the College of Education there are various mechanisms for funding the programmes. St Patrick's College and Mary Immaculate College are funded by the HEA. Froebel College and Coláiste Mhuire, MIE are funded via capitation grants and tuition fee grants and the Church of Ireland College of Education is funded via core budget and tuition fee grants.
The following table details the number of students currently enrolled on the postgraduate programme which commenced earlier this year and the number of students enrolled in the first year of the Bachelor of Education in each college. The table also details the estimated expenditure by my Department for these students in CICE, Coláiste Mhuire and Froebel College. The budget provision for CICE covers students enrolled over the three year programme of the Bachelor of Education Programme. The estimated expenditure by the HEA for the students enrolled in St Patrick's College and Mary Immaculate College in 2010 has been requested and will be forwarded to the Deputy as soon as possible.
|
Number of Students |
Estimated Funding 2010 |
|||
|
B.Ed |
Post Grad |
1st Year B.Ed |
Post Grad |
|
|
€ |
€ |
|||
|
St Patricks College |
411 |
64 |
||
|
Mary Immaculate College |
409 |
60 |
||
|
Froebel College |
70 |
32 |
675,420 |
337,640 |
|
Coláiste Mhuire, Marino |
108 |
61 |
1,159,470 |
562,730 |
|
Church of Ireland College of Education |
32 |
0 |
2,689,720 |
n/a |
Please note that the Church of Ireland College of Education is funded by free fees grants and a direct budget. The direct budget includes payroll costs for academic, administrative and household college staff and the estimated figure for 2010 includes estimated pension and pension lump sum costs of €480,000. The annual budget grant cover students in the three years of the Bachelor of Education course.
Appointments to State Boards.
Thomas P. Broughan
Question:206 Deputy Thomas P. Broughan asked the Tánaiste and Minister for Education and Science the appointments or nominations made by her to bodies, boards or organisations under the aegis of her Department since 1 January 2009 and to date in 2010; the method used in selecting persons for such appointments; and if she will make a statement on the matter. [17076/10]
Since my appointment to the Department in March 2010 I have made a number of appointments to the Governing Bodies of Institutes of Technology. These appointments were made on the nomination of the relevant VECs in accordance with the Institutes of Technology Acts 1992-2006. I will arrange for my Department's officials to forward a copy of appointments made to bodies under the aegis of my Department from 1 January 2009 to the date of my appointment in March 2010 to the Deputy for his information.
School Transport.
Frank Feighan
Question:207 Deputy Frank Feighan asked the Tánaiste and Minister for Education and Science if a review of school transport boundaries and a value for money review on school transport has been completed; if such information is publicly available; and if she will make a statement on the matter. [17082/10]
As the Deputy is aware, School Transport was approved by Government as a topic for inclusion as part of the 2009-2011 round of Value for Money Reviews. This review is looking at the original objectives of the scheme, whether these objectives remain valid today, the extent to which the objectives are being achieved, and whether there are possibilities for economies or efficiencies that would improve the value for money of the scheme. In this context, the review is also looking at fundamental issues such as eligibility criteria and catchment boundaries, with a view to achieving efficiencies and value for money in the scheme. The report of the Value for Money Review of the School Transport Scheme is currently being finalised. When completed, the report will be published and sent to the Oireachtas Select Committee on Education and Science.
Special Educational Needs.
Michael Noonan
Question:208 Deputy Michael Noonan asked the Tánaiste and Minister for Education and Science, further to Parliamentary Question No. 435 of 30 March 2010, when she will formally write to special schools confirming that her Department is undertaking a review of the decision of the Equality Tribunal that children who are pursuing courses leading to accreditation such as junior certificate and leaving certificate applied should be afforded the same duration of time to complete these courses as their counterparts in mainstream education; when the review will be completed; if her attention has been drawn to the fact that the decision of the tribunal applies to all students, present and future and is not to be implemented on a case-by-case basis; and if she will make a statement on the matter. [17086/10]
I wish to advise the Deputy that my Department is currently in communication with special schools whose students are pursuing courses leading to accreditation, such as Junior Certificate/Leaving Certificate Applied. These students will be allowed additional time in special schools to complete these courses. In addition, my Department is currently reviewing its policy concerning school leaving age generally with a view to developing a consistent approach for all students whether they are attending a mainstream post primary school or special school. It would be speculative to indicate a timeframe for completion of this review considering the in-depth process involved.
Finian McGrath
Question:209 Deputy Finian McGrath asked the Tánaiste and Minister for Education and Science if she will support the case of a person (details supplied) in County Kildare. [17234/10]
As I advised the Deputy in my response to Parliamentary Question 193 on 21 April 2010, all primary schools were allocated Learning Support/Resource Teaching support through the General Allocation Model. These teaching resources were provided in order to enable schools provide additional teaching support to pupils who have learning support needs or who have been assessed as having a high incidence disability.
Prior to the introduction of the General Allocation Model, schools had to apply for additional teaching support for each pupil with an assessed disability. However, the introduction of the General Allocation Model means that schools no longer have to make applications for additional teaching support for pupils with high incidence of disability as the Learning Support/Resource teachers are already available in the school. The school has advised my Department that the pupil in question is currently receiving 2.5 hours one-to-one support per week from the Learning Support/Resource teacher. In addition, the pupil is also supported in the classroom through the special needs assistant scheme.
Schools Building Projects.
Deirdre Clune
Question:210 Deputy Deirdre Clune asked the Tánaiste and Minister for Education and Science when construction will begin on a school (details supplied) in County Cork which has now been granted planning permission by the local authority; if the construction phase of the new school will be completed by September 2010; if the new building will be available for use by September 2010; and if she will make a statement on the matter. [17236/10]
As the Deputy is aware, notification of a decision to grant planning permission issued last week for the project to which she refers. Subject to no appeals, the final grant of planning permission will not issue until 4 weeks after the initial decision to grant. The progression of this project is contingent on the receipt of the necessary statutory approvals and the completion by the school Patron of two parcels of land currently in the ownership of Cork County Council and a private land owner. When these issues have been addressed this project will be given further consideration.
Parliamentary Questions.
Lucinda Creighton
Question:211 Deputy Lucinda Creighton asked the Tánaiste and Minister for Education and Science the number of parliamentary questions that have remained unanswered due to staff action to date in 2010; and if she will make a statement on the matter. [17256/10]
The vast majority of the approximately 1,100 Parliamentary Questions submitted to my Department to date in 2010 have received a full and comprehensive response. Unfortunately, due to the industrial action undertaken by some civil service grades, it has not been possible to fully address all of the issues raised by Deputies in a small number of Parliamentary Questions. In such instances, my officials have endeavoured to provide as comprehensive a response as is possible under the existing circumstances.
Higher Education Grants.
Sean Sherlock
Question:212 Deputy Seán Sherlock asked the Tánaiste and Minister for Education and Science if a person who already holds a primary degree but cannot secure work due to the fact that their qualification is in architectural drawing would be entitled to grant aid if they return to third level to pursue another qualification; and if she will make a statement on the matter. [17271/10]
Financial assistance is available to students under the maintenance grant schemes, which are administered by the local authorities and Vocational Education Committees on behalf of my Department. Students who are entering approved courses for the first time are eligible for grants where they satisfy the relevant conditions as to age, residence, means, nationality and previous academic attainment.
Under the terms of the Higher Education Grant Scheme a student is not eligible for grant assistance in respect of a second period of study at the same level, irrespective of whether or not a grant was paid previously. However, financial assistance is available to eligible candidates who already hold a postgraduate qualification and who wish to enter a further postgraduate course, at a higher level, which represents progression from the level at which the first qualification was attained. The progression route at postgraduate level, for grant purposes, is as follows: Higher Diploma/Postgraduate Diploma / Masters / PhD/Doctorate. Candidates who hold a undergraduate qualification and are pursuing a second undergraduate qualification cannot be considered for funding.
Schools Building Projects.
Emmet Stagg
Question:213 Deputy Emmet Stagg asked the Tánaiste and Minister for Education and Science the position regarding the appointment of a design team for the required extension to a school (details supplied) in County Kildare. [17329/10]
As the Deputy will be aware, on 16 February my predecessor announced details of 51 major school building projects that will appoint design teams this year. I am pleased to inform the Deputy that the project in question is scheduled to have a Design Team appointed in the fourth quarter of 2010. My Department will contact the school regarding this matter in due course. Details on all of these projects are available on my Department's website, www.education.ie.
Emmet Stagg
Question:214 Deputy Emmet Stagg asked the Tánaiste and Minister for Education and Science when a design team will be appointed for the required extension to a school (details supplied) in County Kildare. [17330/10]
I can confirm that the school to which the Deputy refers has made application to my Department for large scale capital funding. The application has been assessed in accordance with the published criteria for large scale capital projects and assigned an appropriate band rating. Information in respect of the current school building programme along with assessed applications for major capital works, including the projects referred to by the Deputy, are now available on my Department's website at www.education.ie.
The progression of all large scale building projects, including the project for the school in question, from initial design through to construction phase will be considered in the context of my Department's multi-annual School Building and Modernisation Programme. However in light of current competing demands on the capital budget of my Department, it is not possible to give an indicative timeframe for the progression of the project at this time.
Emmet Stagg
Question:215 Deputy Emmet Stagg asked the Tánaiste and Minister for Education and Science when tenders will be invited for the required extension to a school (details supplied) in County Kildare. [17331/10]
The project to which the Deputy refers is currently at an advanced stage of architectural planning. Planning permission has been received and the Design Team is currently working on completing the stage 2(b) submission for this project. Following receipt and review of the Stage 2(b) submission, my Department will revert to the school regarding next steps in the progression of the project towards tender and construction.
School Accommodation.
Emmet Stagg
Question:216 Deputy Emmet Stagg asked the Tánaiste and Minister for Education and Science if the forward planning section of her Department has completed its analysis of secondary school accommodation requirements for the school year 2014 to 2015 and if a gaelcholáiste for north Kildare is deemed necessary. [17332/10]
The Forward Planning Section of the Department is in the process of carrying out detailed analysis of over 40 locations of highest population growth in order to identify the school accommodation requirements up to and including the school year 2014/2015. Given the increase in the birth rate in recent years the initial focus of this analysis is on primary school accommodation requirements and this will be followed by a more detailed analysis of post-primary accommodation requirements.
When the required reports have been completed for these initial identified areas the Forward Planning Section will continue to work on preparing reports on a priority basis for the remainder of the country. Overall school accommodation requirements in the North Kildare area, including the case for the provision of a new Irish language post-primary school, will be considered in this regard. In addition to this detailed analysis of accommodation needs currently being carried out by Forward Planning Section, the Department is also currently examining a number of broad policy issues regarding the establishment of new post-primary schools. As part of this, consideration is being given to the setting up of a new framework in relation to the establishment of new second level schools and their patronage.