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Dáil Éireann debate -
Thursday, 14 Oct 2004

Vol. 590 No. 3

Written Answers

The following are questions tabled by Members for written response and the ministerial replies received from the Departments [unrevised].
Questions Nos. 1 to 9, inclusive, answered orally.

Semi-State Bodies.

Jim O'Keeffe

Question:

10 Mr. J. O’Keeffe asked the Minister for Finance if he has satisfied himself with the payments made to terminate the employment of the chief executive of Aer Rianta; and the papers which were presented to him in this respect before he issued his approval. [24842/04]

Mary Upton

Question:

53 Dr. Upton asked the Minister for Finance if he approved the severance package for the former chief executive of Aer Rianta (details supplied); the value of the package approved by him; if there was consultation with the Department of Transport on this matter; and if he will make a statement on the matter. [24647/04]

I propose to take Questions Nos. 10 and 53 together.

The previous Minister, as shareholder, indicated his consent to arrangements, outlined to him by the chairman of Aer Rianta on 24 September last, concerning the package the board proposed to make to the deputy chief executive who was leaving the company. I understand that the proposed package included a lump sum of 2.5 times salary, a contribution to pension fund, payment of a bonus and retention of company car.

Financial Services Regulation.

Pádraic McCormack

Question:

11 Mr. McCormack asked the Minister for Finance if he has satisfied himself with the response from financial institutions to the shortfall on endowment mortgages compared to the projections at the time of sale. [24619/04]

Recent publicity about endowment mortgages has focused on the possibility that a significant number of holders of such mortgages will have a shortfall of funds when the mortgage reaches the end of its normal term. These products inherently require customers to take some risk; they are exposed to market fluctuations, just like any market based life assurance investment. The fact that a person does not gain as much as expected is not in itself an indication of any inappropriate practices on the part of the bank or insurance company concerned.

There is already a substantial volume of legislation in place relating to these products. The Consumer Credit Act 1995, for example, requires that all endowment loan application forms must contain a prominent notice to the effect that there is no guarantee that the proceeds of the insurance policy will be sufficient to repay the loan in full when it becomes due. The Act also obliges the provision of ongoing information on the performance of the policy, as do the Life Assurance (Provision of Information) Regulations 2001. The Central Bank and Financial Services Authority of Ireland Acts 2003 and 2004 established the Irish Financial Services Regulatory Authority or IFSRA and considerably strengthened the regulatory environment, including an enhanced structure for dealing with consumers' complaints about financial institutions.

IFSRA is already studying the situation, having commenced a survey earlier this year, to determine whether and to what extent there will be difficulties for customers. It would be premature at this stage to second guess the outcome of the survey. I will continue to review the adequacy of the legislative framework as the information developed by IFSRA becomes available.

Special Savings Incentive Scheme.

Dan Neville

Question:

12 Mr. Neville asked the Minister for Finance if he has commissioned any study on the impact of the release of funds under the SSIA scheme; and if he will make a statement on the matter. [24627/04]

The SSIA scheme opened on 1 May 2001 and entry to it closed on 30 April 2002. The accounts are due to mature between May 2006 and April 2007 at the end of the five year period. A total of 1.17 million accounts were opened during the period outlined; approximately 400,000 accounts existed at 31 December 2001.

The impact of such maturing funds on consumer demand in 2006 and 2007 is difficult to estimate and will depend on how the accumulated SSIA savings are spent or saved, how that portion of an individual's income that was previously saved in SSIAs is used and the extent to which savings are rolled over into other investment products. To date, two reports have been carried out on the impact of the SSIAs, one by Goodbody stockbrokers and one by Lansdowne Market Research. However, there is no consensus in these reports as to how these funds may be used, with both reaching differing conclusions regarding the division between consumption and saving. The ESRI, in its autumn bulletin, does not hypothesise about the likely impact on the economy of the release of SSIA funds because it believes there are too many uncertainties around the likely behaviour of fund recipients.

I have not commissioned a specific study on the impact of the release of the funds. My Department is keeping the issue under review in the context of the normal assessment of the economic and budgetary position going forward. However, it is important to emphasise that, as the scheme will not commence to mature for another two years, there are many uncertainties regarding the maturity of the SSIAs, which makes the task of analysing the impact particularly difficult.

Decentralisation Programme.

John Deasy

Question:

13 Mr. Deasy asked the Minister for Finance if he envisages making any special provision for promotion and for new recruitment in the context of the decentralisation programme; and if he will make a statement on the matter. [24638/04]

Existing promotion and recruitment practices and procedures will have to be reviewed and revised to take account of the decentralisation programme. There are already discussions underway with Civil Service unions about these and other human resource aspects of the programme.

Tax Collection.

Seán Ryan

Question:

14 Mr. S. Ryan asked the Minister for Finance if his attention has been drawn to the serious reduction in the number of random audits undertaken by the Revenue Commissioners, which fell from 720 in 2002 to 274 in 2003; if, in view of the finding of the Comptroller and Auditor General that the Revenue Commissioners failed to meet their targets for audits due to pressure of other work, he intends to provide additional staff or resources to allow the full complement of audits to be undertaken; and if he will make a statement on the matter. [24670/04]

As reported by the Comptroller and Auditor General, the reduction in the numbers of random audits completed during 2003 was due to the resources required to carry out investigations into the holders of bogus non-resident accounts. This resulted in the number of random audits completed, 274, being less than the number targeted, 500. However, it should be noted, as pointed out in the Comptroller and Auditor General's report, that in 2003 cases were not selected purely at random but revenue districts selected those cases for audit which represented the greatest risk from an initial random selection.

It is anticipated by the Revenue Commissioners that the bogus non-resident investigation will be largely completed by the end of 2004 and the Revenue Commissioners assure me that there is in place an adequate staffing resource to carry out effective audit and compliance campaigns. This includes the resources necessary to carry out the targeted number of random audits.

Fiscal Policy.

David Stanton

Question:

15 Mr. Stanton asked the Minister for Finance if he has satisfied himself that the extra tax collected in the past seven years is delivering value for money through the spending increases which it was used to finance. [24845/04]

Between 1997 and 2004, the Government has more than doubled total spending on public services to over €41 billion. Priority has been given to expenditure on social welfare, health, education and investment. Gross current spending on health has increased by 176% to €9.6 billion in 2004, spending on social welfare has increased by 97% to €11.3 billion while expenditure on education has increased by 103% to €6.1 billion. Voted capital spending to address the country's infrastructural deficit has increased by 178%. The general Government debt ratio has decreased from 65 % of GDP in 1997 to an expected ratio of less than 32% by the end of this year. In addition, nearly €10.5 billion has been set aside for long-term pension and social security costs by investing in the National Pension and Reserve Fund.

This level of spending has been achieved in tandem with the preservation of a stable budgetary position and major reductions in personal taxation. It has resulted in significant improvements in public services across the board and I invite the Deputy to raise this aspect with individual Ministers.

Presentation of Estimates.

Simon Coveney

Question:

16 Mr. Coveney asked the Minister for Finance if he plans to introduce changes in the presentation of Estimates in 2005. [24598/04]

I have no plans to change the way the Estimates are presented and approved for 2005 but I will be considering this issue further at a later date.

The Government's spending proposals are outlined in the two Estimates volumes. They are presented to Dáil Éireann in accordance with its Standing Orders. The pre-budget or Abridged Estimates volume, AEV, is presented to Dáil Éireann approximately two weeks before budget day. This year, the presentation date will be 18 November. For the past two years the AEV has been debated in the Dáil very soon after publication. There is also scope for discussion in the House of the Government's expenditure proposals in the debate on the budget. In this way Deputies are afforded the opportunity of commenting on the Government's expenditure plans in advance.

The post-budget or Revised Estimates volume, REV, is normally presented to the Dáil within eight weeks of the start of the fiscal year to which it relates. The Estimates by departmental Vote are then subject to full scrutiny by the relevant Oireachtas committee, which notifies the Dáil of its consideration. It is then up to the Dáil to approve or reject the Estimates.

I am open to considering future changes and will be doing so in the general context of a pilot project underway to examine ways of improving the links between departmental strategy statements, business planning and resource allocation and outputs. The pilot project is progressing under the aegis of my Department and involves the Departments of Agriculture and Food, Social and Family Affairs and Transport as pilot Departments. When the report of the pilot project is finalised the results will be evaluated and considered by Government.

The core of the issue is to consider putting in place at the outset of a financial year an integrated business and resource plan for each area of Government, and at the end of the year an annual report and accounts. The existing approach of producing separate Estimates, strategy statements, annual reports and appropriation accounts is unsatisfactory.

Special Savings Incentive Scheme.

Joe Sherlock

Question:

17 Mr. Sherlock asked the Minister for Finance the number of special savings investment scheme accounts opened at the latest date for which figures are available; the average amount of savings per investor per month; if, on the basis of any such figures, his Department can now give a definite figure for the likely cost to the Exchequer of the specials savings investment scheme; and if he will make a statement on the matter. [24672/04]

I am informed by the Revenue Commissioners that, based on the analysis of the 2003 returns furnished by all qualifying savings managers, the total number of active accounts at 31 December 2003 was 1,113,880 and the average monthly subscription at that date was €165.

As indicated in replies to previous questions, it is not possible to give a definitive answer as to the eventual cost of the scheme as it is subject to a number of variables, such as where participants die, withdraw from the scheme or vary their monthly contributions. The cost of the scheme in 2003 was €531.9 million. If the current average monthly payment for the first nine months of 2004 continues for a full year, the annual cost in 2004 would be approximately €545 million. This, however, is not a conclusive figure and the final figure may be different if account holders change their monthly contributions. The total gross cost over the period of the scheme will be reduced by the exit tax to be received at the end.

Decentralisation Programme.

Kathleen Lynch

Question:

18 Ms Lynch asked the Minister for Finance if, in view of the recent figures published by the central applications facility showing that virtually all targets in regard to staff numbers and grades required for the decentralisation programme, particularly in regard to the numbers now working in Dublin, have not been met, he proposes to review the plan announced by his predecessor; and if he will make a statement on the matter. [24655/04]

The latest figures from the central applications facility show there is substantial interest in the programme within the public service. There has been a substantial increase in the figures since July. We are still at a relatively early stage in the implementation process. The figures are also well in excess of those which many commentators were predicting. The CAF remains open for applications and new applications continue to be lodged. I believe that the latest CAF figures reinforce the need to press ahead with implementation of the programme.

Stability and Growth Pact.

Ciarán Cuffe

Question:

19 Mr. Cuffe asked the Minister for Finance his views on the opinion of the president of the European Central Bank that the terms of the Stability and Growth Pact should not be relaxed. [24800/04]

The Stability and Growth Pact is an important framework that underpins sound macroeconomic policies within the EU's economic and monetary union and thereby promotes economic growth and job creation. Equally, however, the need for improvements in the workings of the Stability and Growth Pact has been recognised for some considerable time. In response to this need, the European Commission presented a formal communication on 3 September 2004, outlining its proposals for strengthening economic governance and clarifying the implementation of the Stability and Growth Pact.

The Commission's proposals are quite wide ranging and detailed, and the process of discussion and debate is in its early stages. However, some of the proposals are in keeping with Ireland's economic priorities. Ireland has long argued, for example, that countries with low debt levels and with clear investment needs should not be unduly constrained from making the necessary resources available. The Commission proposals represent a move in this direction. I look forward to engaging in a constructive debate with my EU colleagues on this point, and on other proposals for enhancing the Stability and Growth Pact, in the months ahead.

As regards the views of Mr. Trichet, the president of the ECB, he has reportedly stated that the ECB governing council is convinced that substantial improvements in the implementation of the pact would be beneficial and that most of the Commission's proposals in this regard appear to him to be well advised. Mr. Trichet has also reiterated the ECB's view that the 3% deficit limit laid down in the treaty should not be undermined and that changes to the text of the treaty or of the pact's regulations would, therefore, not be advisable.

I have no problems with Mr. Trichet's position. Indeed, at the informal meeting of the eurogroup and the ECOFIN Council on 10 and 11 September 2004, Ministers issued a statement reiterating that the 3% deficit and 60% debt criteria in the treaty were of paramount importance and that any changes to the pact's regulations should be minimised, if necessary at all. The statement also emphasised that Ministers are not looking for a weakening of the pact but rather for strengthening, clarification and better implementation.

Fiscal Policy.

Gerard Murphy

Question:

20 Mr. Murphy asked the Minister for Finance if he has plans to introduce greater transparency in tax expenditures in budget 2005. [24596/04]

Tax expenditures are regularly reviewed and are invariably looked at in the context of the annual budget and Finance Bill process to ensure they continue to meet the purpose or purposes for which they were introduced. Where tax changes are announced in the budget, they are set out in the summary of budget measures together with an estimated cost or yield, where possible. This will continue to be the position.

On the question of costs, it is the Office of the Revenue Commissioners which is the main source of information, statistics and data on tax incentives and expenditures. However, the Revenue Commissioners' primary functions are the administration of the tax system and the collection of tax. The extraction of statistical information flows from those primary functions.

My Department has been working closely with the Revenue Commissioners to investigate information and data capture issues with a view to improving data quality and transparency without overburdening compliant taxpayers. On foot of this work, the Revenue Commissioners are introducing a number of changes to the forms which will yield additional information regarding the cost of various tax reliefs and relief relating to pensions. Provisions were included in Finance Act 2004 to underpin these changes.

Changes were made in this area previously. The Finance Act 2003 stipulated that returns of income must henceforth be made for stallion stud fees and commercially managed woodlands. This will provide better data in this area and enable estimates of the tax foregone to be made. In addition, the use of electronic filing of tax returns by means of the Revenue Commissioners' on-line system, ROS, has been increasing and will continue to be encouraged. Returns filed using ROS can more readily accommodate information data capture.

Finally, I do not believe that each and every relief needs to be captured as some of them are on such a small scale that the cost involved in doing so would not be commensurate with the value of the information sought. Equally, the manner of capturing information on tax reliefs is not limited to examining return forms. For example, there is no need to seek information on tax returns relating to the tax exemption for child benefit as the cost involved can be estimated from other sources.

Tax Code.

Paul Kehoe

Question:

21 Mr. Kehoe asked the Minister for Finance if he has satisfied himself with the equity of the stamp duty code. [24623/04]

Stamp duty is a tax on property and property rights. As ownership of property is positively correlated with income, the incidence of this tax will tend to fall more on those on higher incomes. The equity of this depends on one's viewpoint but such a tax is generally regarded as progressive from the point of view of equity.

As for equity between different classes of purchasers of property, the following points are of relevance. Stamp duty does not arise in the case of transfers on death or in the case of transfers between spouses. Half the normal rate applies in the case of transfers between other close relatives. No stamp duty applies in the vast majority of purchases of new houses by first time buyers or other owner occupiers, whereas investors pay the normal rates on the purchase of new houses. In the case of the purchase of a second-hand house by a first time buyer, stamp duty only applies if the value exceeds €190,500. It is always difficult to achieve complete equity in taxation but this issue is borne in mind where relevant in the case of stamp duty.

Public Service Staff Levels.

John Perry

Question:

22 Mr. Perry asked the Minister for Finance the progress made on his arrangement to reduce public service numbers by 5,000 by the end of 2005; and if this will underpin the preparation of Estimates for 2005. [24640/04]

I am satisfied with the progress being made in regard to the reduction in public service numbers since the announcement of the measure in December 2002. There were 280,121 public servants serving at end June compared with a target at the end of 2004 of 280,171.

Public Service

Target end 2004

Serving end June 2004

Difference Serving/Target 2004

Civil Service [Non-Industrials]

36,269

35,447

-822

Civil Service [Industrials]

2,163

2,003

-160

Health Sector

96,950

97,660

710

Education Sector

78,000

78,911

911

Defence

11,580

11,412

-169

Garda

12,200

12,099

-101

Local Authorities

33,633

33,330

-303

Non-Commercial Semi-States

9,376

9,259

-117

Total

280,171

280,121

-50

The overall total masks differences between sectors. Since the 5,000 target reduction was originally set, the ceilings for the numbers employed in the education and health sectors have been adjusted to reflect subsequent developments. My predecessor already agreed to increases in numbers in the education sector, to meet the demand in the special needs area, and in the health sector, to meet the demand for extra staff arising from disability needs, the opening of new units and the takeover of functions previously performed by voluntary agencies. The revised authorised targets will underpin the preparation of the 2005 Estimates.

Departmental Estimates.

Jerry Cowley

Question:

23 Dr. Cowley asked the Minister for Finance the amount his Department will allocate to the horse racing and greyhound racing industry in 2004; the way in which this compares in percentage terms with the amount given towards the provision of Irish emigrant services in the UK and elsewhere; and the Government’s priorities in this regard. [24587/04]

The allocation of funding to the areas mentioned by the Deputy is a matter for the individual Ministers concerned, in this case the Minister for Arts, Sport and Tourism and the Minister for Foreign Affairs.

Public Sector Salaries.

Mary Upton

Question:

24 Dr. Upton asked the Minister for Finance the amount of money paid to date under the performance related bonus scheme for senior civil servants, gardaí and members of the Defence Forces; the average amount paid; the largest amount paid; the number of such persons who applied for the bonus and the number who were refused; the way in which and the persons by whom decisions are made in regard to whether such persons should receive the bonus; if he has plans to review the scheme; and if he will make a statement on the matter. [24646/04]

Following the recommendations of the review body on higher remuneration in the public sector in its report dated 25 September 2000, the Government decided to replace the then existing scheme in the Civil Service with a new scheme of performance related awards and to introduce the new scheme in the Garda Síochána and the Defence Forces.

The new scheme applies to Civil Service posts at the levels of assistant secretary and deputy secretary, to deputy commissioners and assistant commissioners in the Garda Síochána and to major generals and brigadier generals in the Defence Forces. The scheme applied with effect from 1 January 2002 in the Civil Service and with effect from 1 May 2002 in the other sectors. The funding for awards is based on 10% of the payroll for the posts covered by the scheme. Within this overall limit, payments of up to 20% can be made to individuals.

In accordance with the recommendations of the review body, a committee for performance awards was established to oversee the operation of the scheme of performance related awards. The members of the committee are: EddieSullivan, chairperson, Secretary General, public service management and development, Department of Finance; Dermot McCarthy, Secretary General to the Government; Ann Fitzgerald, Secretary General, Irish Association of Investment Managers; Maurice Keane, former group chief executive, Bank of Ireland group; Tony O'Brien, chairman, C&C Group PLC.

Decisions on performance related awards for individual posts are made by the committee based on recommendations from Secretaries General in the case of the Civil Service, the Garda Commissioner or the Chief of Staff of the Defence Forces. The recommendations made to the committee are based on assessments of performance against pre-set objectives. The first awards under the scheme were made in 2003. The awards covered a 12 month period from 1 January 2002 in the case of the Civil Service grades and an eight month period from 1 May 2002 in the case of the other groups. The awards made in 2004 were in respect of the 12 month period from 1 January 2003 in all cases.

The cost of the awards approved by the committee for performance awards amounted to approximately €2 million in 2003 and approximately €2.2 million in 2004. As already indicated, the awards in 2003 related to an eight month period only in the case of the ranks in the Garda Síochána and the Defence Forces. In the case of the Civil Service grades, where the awards related to a 12 month period, the average amount paid was in the region of €10,000. The highest award made in 2003 was approximately €20,500 and the lowest award was approximately €1,700. In 2004, the average amount paid in respect of all groups was in the region of €10,600, the highest award made was approximately €21,500 and the lowest award was approximately €2,000.

The numbers of people who participated in the scheme of performance related awards were 213 in the case of the awards made in 2003 and 205 in the case of the awards made in 2004. In 2003, some award was made to all persons who participated in the scheme. In 2004, one person who participated in the scheme did not receive an award. The scheme of performance related awards and the guidelines approved by the committee for performance awards allow discretion to give some award in situations where demanding targets have been narrowly missed. The scheme of performance related awards will be considered by the review body on higher remuneration in the public sector as part of its next general review.

The information sought by the Deputy, as well as other information relating to the scheme of performance related awards, is contained in the annual reports of the committee for performance awards. The report for 2003, covering awards made in 2004, is available on the website of my Department —www.finance.gov.ie.

Exchequer Returns.

Brendan Howlin

Question:

25 Mr. Howlin asked the Minister for Finance the main features of the Exchequer returns for the first nine months of 2004; the way in which spending and the tax take for this period compare with the projected levels; and if he will make a statement on the matter. [24653/04]

The full detailed Exchequer statement is published on my Department's website each month. The Exchequer balance for the first nine months of 2004 showed a deficit of €418 million. There was a current budget surplus of €2,348 million and a capital budget deficit of €2,766 million.

Tax receipts to end September 2004, at €24,598 million, were €1,638 million or 7.1% ahead of the Department's tax profile published in January. This was due to extra once-off moneys from Revenue Commissioners special investigations and better than anticipated receipts from nearly all tax heads, with the exception of corporation tax which was behind profile. In excess of €660 million of total tax receipts was due to once-off moneys from Revenue Commissioners special investigations. This high level of once-off moneys must be borne in mind in assessing the picture for the year.

Overall net voted spending, at €22,685 million, was €1,075 million below the Department's spending profile, with both current and capital spending behind target. The indications are that overall voted expenditure for the year as a whole will be broadly in line with profile. In light of the end of quarter returns, my Department's budget day Exchequer balance forecast for 2004 as a whole has now been revised to a deficit of €1.2 billion. However, as stated above, the once-off nature of some of the extra tax receipts must be borne in mind in assessing the picture for the year.

The Exchequer returns to end September confirm the improvement in the public finances revealed at mid-year. This is a result of prudent fiscal management which I intend to maintain.

Tax Code.

Breeda Moynihan-Cronin

Question:

26 Ms B. Moynihan-Cronin asked the Minister for Finance if he intends to make changes to the legislative provisions regarding residency abroad for tax purposes; and if he will make a statement on the matter. [24659/04]

The residence rules for tax purposes were last updated in the 1994 Finance Act by the then Government following a comprehensive review of the matter by the Revenue Commissioners and the Department. Prior to this the rules were based on a mixture of statutory provisions, old case law and Revenue Commissioners administrative practice, which was an unsatisfactory situation. The new residence rules set out in the 1994 Finance Act both simplified and clarified the area and were generally welcomed. It is not the practice to comment in the lead up to the annual budget and Finance Bill on the intention or otherwise to make budget or legislative changes.

Report of Comptroller and Auditor General.

Arthur Morgan

Question:

27 Mr. Morgan asked the Minister for Finance the action he proposes to take on foot of the findings of the annual report for 2003 of the Comptroller and Auditor General in so far as they affect his Department; and if he will make a statement on the matter. [24826/04]

Two parts of the annual report of the Comptroller and Auditor General for 2003 relate directly to my Department. Action has been taken on both.

In chapter 2 of the report, about returning officers' expenses, the main concerns raised by the Comptroller and Auditor General were about delays in the Department's checking of accounts received and about ensuring that returning officers submit their accounts in time. As regards checking of accounts, my Department has assigned significant resources to eliminating the backlog. Almost all the accounts mentioned by the Comptroller and Auditor General as unchecked at end 2003 have been examined. The majority of these have been settled and queries have been raised with the relevant returning officers on the rest. The remaining few are being worked on.

As regards outstanding accounts, it is the responsibility of returning officers to ensure the timely submission of their accounts. However, my Department wrote some months ago to all returning officers with outstanding accounts stressing that they should be submitted without delay, and reminders have been issued as appropriate. More than half of the outstanding accounts have been received. All of these either have been examined, with the majority settled and queries raised on the rest, or are being worked on. The remaining outstanding accounts have been promised within a further short period.

As regards the June 2004 elections and referendum, the accounts for which are due by mid-December, my Department inserted a new provision in the charges order made in advance of those elections to enable returning officers to pay for any support necessary to facilitate the timely submission of their accounts.

Chapter 6 of the Comptroller and Auditor General's report outlines the factors contributing to a small excess vote — some €25,000 — for 2003 for the Office of the Ombudsman. My Department carries out a number of financial functions on behalf of that office and the problems encountered stemmed from the introduction of a new shared financial management system in 2003. A number of steps have been taken to prevent a recurrence. In the Department these include checklists to ensure that tasks are carried out in a timely way and, as an interim measure, a manual work around for the relevant part of the new system pending installation of an appropriate system modification, a matter which is under discussion with the Department's technical advisers.

The circumstances of this excess vote and of the other excess vote for 2003, in the Civil Service Commission, were examined by the Dáil Committee of Public Accounts on 7 October and the committee indicated that it saw no objection to the excess sums being sanctioned by the Dáil by means of excess Votes. A formal interim report from the committee is awaited.

Tax Code.

Jan O'Sullivan

Question:

28 Ms O’Sullivan asked the Minister for Finance if he has received a request from the Revenue Commissioners for a change in the law to make it easier to pursue banks and financial advisers for aiding and abetting tax evasion; his views on such a request; and if he will make a statement on the matter. [24663/04]

This issue and any other powers issues of concern will be considered in the context of the next Finance Bill along with the recommendations of the Revenue powers group. It is not normal practice for a Minister to comment in the lead up to the budget and Finance Bill on what tax or legislative changes may be introduced.

Freedom of Information.

Michael D. Higgins

Question:

29 Mr. M. Higgins asked the Minister for Finance if, in view of the huge decrease in the number of applications received under the Freedom of Information Act 1997 and in the number of cases in which decisions made by Departments are processed to internal appeal, he will review the restrictions imposed by his predecessor on the operation of the Freedom of Information (Amendment) Act 2003; and if he will make a statement on the matter. [24651/04]

Brendan Howlin

Question:

77 Mr. Howlin asked the Minister for Finance if his attention has been drawn to the call made by the Information Commissioner (details supplied) during the course of an address to the finance and public services committee on 7 July 2004 for a review of the scale and structure of charges under the Freedom of Information Act 1997; if he intends to act on the call; and if he will make a statement on the matter. [24652/04]

I propose to take Questions Nos. 29 and 77 together.

I have no plans to review the amendments made to the Freedom of Information Act last year. These amendments followed careful consideration of the operation of the Act by a high level group of Secretaries General and were fully debated at the time. While I am aware of the Information Commissioner's statements about charges that apply under the Act, I have no plans to review the system that has been put in place.

Tax Collection.

Seán Ryan

Question:

30 Mr. S. Ryan asked the Minister for Finance if he has satisfied himself that all appropriate measures are being taken to stamp out tax evasion, having regard to the continuing number of settlements, some involving huge sums of money, being reported by the Revenue Commissioners each quarter; the policy of the Revenue Commissioners in regard to prosecutions; and if he will make a statement on the matter. [24669/04]

I am satisfied that the Revenue Commissioners are pursuing a programme which is dealing in a very determined way with tax evasion. The Revenue Commissioners are taking an approach which combines the use of monetary settlement, publication, criminal investigation and prosecution and which has yielded significant results in recent years.

Having regard to the extensive resources required and the significant evidential requirements in prosecuting cases of serious tax evasion, the majority of cases are dealt with by means of monetary settlement. This involves payment of the tax evaded, interest and penalties and, provided the case meets the criteria in section 1086 of the Taxes Consolidation Act 1997, publication. It is worth noting that in settlement cases the ultimate sum paid is usually a multiple of three to four times the tax originally evaded and that this constitutes a significant and painful penalty.

The Revenue Commissioners also now have a clear policy of prosecuting cases of serious tax evasion each year despite the evidential difficulties involved and the resource intensive nature of this work. This work is dealt with in their investigations and prosecutions division which has a clear mandate to increase the number of such cases coming to court. Recent figures indicate that this new approach is proving successful. Currently, 41 cases are under investigation for prosecution and 11 cases are with the DPP. Directions to prosecute have been received from the DPP in another nine cases and these are proceeding to court. Bench warrants have been issued in two cases and one case is before the courts.

It should be noted that the Revenue Commissioners also take in excess of 1,000 prosecutions in the district courts each year in cases related to non-filing of tax returns.

Tribunals of Inquiry.

Joan Burton

Question:

31 Ms Burton asked the Minister for Finance the proposed new schedule of fees for existing tribunals and inquiries; the reason the new schedule of fees will not, in a number of cases, apply until 2006; the estimated savings that would accrue in the case of each tribunal or inquiry if the reduced fees were to be applied from 1 September 2004; and if he will make a statement on the matter. [24643/04]

Trevor Sargent

Question:

76 Mr. Sargent asked the Minister for Finance his views on initiatives proposed by his predecessor on limiting legal fees paid at tribunals. [24816/04]

I propose to take Questions Nos. 31 and 76 together.

My predecessor announced on 19 July last that the Government had decided that, with effect from 1 September 2004, the cost of all legal representation, including that of third parties, at newly established tribunals or other forms of inquiry will be paid by way of a set fee payable for the entirety of the tribunal. The calculation of daily rates will be based on this fee. These rates are as follows: senior counsel —€213,098 pa or €969 per day; junior counsel: €142,065 pa or €646 per day. In the case of a solicitor, the rate is €176,000 pa or €800 per daily appearance or €100 per hour for work other than appearing at the tribunal.

It was also decided at that time that the new fee structure should apply to existing tribunals and inquiries with effect from such dates as may be determined by the Government following consultation between the Attorney General and the chairperson of each tribunal/inquiry. Arising from the above mentioned consultations and as announced in the Government press statement of 5 September last, the Government has agreed the dates on which the new schedule of fees would be applied to most existing tribunals and inquiries. These are as follows: the Murphy inquiry into child sexual abuse in Ferns — 1 December 2004; the Clarke inquiry into events at Our Lady of Lourdes Hospital, Drogheda — 31 March 2005; the Barr tribunal investigating the shooting dead of John Carty at Abbylara — 1 June 2005; the Moriarty tribunal investigating payments to Mr. Haughey and Mr. Lowry — 11 January 2006; and the Morris tribunal investigating activities by gardaí in Donegal — 30 September 2006.

The relevant date in respect of the Mahon tribunal will be set once changes to the terms of reference of that tribunal have been made. Such changes will be made in the context of the consideration by the Houses of the Oireachtas of that tribunal's fourth interim report. With regard to the Dunne post mortem inquiry, the Government has decided to direct that inquiry to complete its work and issue its final report by 31 March 2005, by which date the inquiry will cease to exist.

The Government decided to set different dates for different tribunals and inquiries having regard to the individual circumstances of each tribunal or inquiry and after communication with each of their chairpersons. The Government determined not to set dates which were unrealistically early, as to do so might have involved extensive disruption of the tribunals and inquiries by reason of changes in legal personnel involved. The delays and costs which such changes would have entailed could have added to, rather than reduced, the costs of the tribunals and inquiries.

The effect of the new schedule of legal fees will be to greatly reduce the cost of tribunals and inquiries should they continue their work beyond the set dates. It is not possible to calculate the savings, if any, had the new fees been applied to all existing tribunals and inquiries from 1 September last. As indicated above, this was not a realistic proposition and could have added to rather than reduced the cost of the affected tribunals and inquiries. I fully support the initiatives announced by my predecessor in July last. They will lead to significant savings in the case of new tribunals and in the case of existing tribunals which run beyond the dates specified above.

Public Private Partnerships.

Olivia Mitchell

Question:

32 Ms O. Mitchell asked the Minister for Finance if he has satisfied himself with the performance of PPP projects to date; and his expectation for expenditure funded in this way in 2005. [24602/04]

Public private partnerships have an important role to play in addressing our infrastructural needs. While the performance of individual PPP projects is a matter in the first instance for the Minister with primary responsibility for the areas to which these projects relate, the initial programme of projects was a pilot phase and the lessons learnt have been incorporated into guidelines issued by my Department. We are still learning and will keep our processes and procedures under review.

A major change in the financial treatment of capital spending was initiated in budget 2004 with the introduction of five year capital investment envelopes. These included significant provision for PPP-NDFA funded investment. The allocations in these envelopes for expenditure in 2005 will be reviewed in the normal manner, in the context of the formulation of the budget.

Decentralisation Programme.

Paudge Connolly

Question:

33 Mr. Connolly asked the Minister for Finance the progress made in the acquisition of premises, sites and facilities for the proposed decentralisation of the various Departments to the relevant centres throughout the country; and the estimated costs entailed in such acquisitions. [24585/04]

The Office of Public Works received in excess of 700 proposed property solutions for the programme. Detailed evaluation of the proposals was undertaken and the OPW has made significant progress in sourcing possible sites at the locations concerned.

To date, eight property solutions have been agreed in principle and a further 20 are at an advanced stage in the acquisition process. The balance of the sites will be pursued over the coming months. A broad range of factors will influence the cost of acquiring sites and these include: proximity of the site to commercial, leisure and educational facilities; proximity to public transport; access to and from a good quality road network; and zoning for development.

The prevailing property market conditions in each geographical area will also have a significant bearing on the cost of acquiring sites. In the circumstances, and taking into account that the acquisition process is still in progress, it is not possible to provide an estimate of the cost of the site acquisition programme.

Financial Services Regulation.

Emmet Stagg

Question:

34 Mr. Stagg asked the Minister for Finance the number of individuals, companies and trusts being investigated by the Revenue Commissioners arising from the Clerical Medical Insurance-NIB inquiry at the latest date for which figures are available; the number of cases where settlements have been agreed and the amount paid to date; and the number of cases still outstanding. [24675/04]

I am informed by the Revenue Commissioners that the inquiry has led to 452 cases being targeted for investigation.

To date 295 cases have been settled on payment of tax, interest and penalties amounting to a total of €48.12 million. A further 113 cases were finalised with no additional liability arising. The remaining 44 cases are the subject of ongoing investigation for which €4.70 million was paid on account.

In the course of 2003, three cases were prosecuted in the courts, with fines being imposed in two cases and a suspended sentence imposed in the other. The individuals concerned have also settled their tax affairs and paid the outstanding tax, together with interest and penalties. A further case is currently under investigation with a view to prosecution.

Aggregate results of the ongoing investigations have been published each year since 1998 in the annual reports of the Revenue Commissioners. Individual details of settlements were also published where the provisions of section 1086 of the Taxes Consolidation Act 1997 applied.

Decentralisation Programme.

Liz McManus

Question:

35 Ms McManus asked the Minister for Finance if, in view of the recent figures published by the central applications facility in respect of State agencies showing that few staff and, in some cases, no staff had indicated a wish to transfer to the new locations proposed, he will review the plan for State agencies; his views on the potential loss of skills and expertise for specialist State agencies should they be decentralised with so few people willing to transfer; and if he will make a statement on the matter. [24656/04]

The latest figures from CAF show there is very substantial interest in the programme within the public service. The figures for the Civil Service are much better than those for the State agencies. The former has considerable experience of decentralisation and has a long tradition of interdepartmental transfers. I see no reason, in principle, that State agencies should always remain in Dublin. There are issues that arise in dealing with the State agencies and it was always going to be the case. The correct approach is to tease out the issues and develop good long-term solutions in consultation with all of the parties involved. The Flynn group has adopted this approach.

Tax Collection.

Jan O'Sullivan

Question:

36 Ms O’Sullivan asked the Minister for Finance the response received to date by the Revenue Commissioners to the letters sent by ten top banks to approximately 120,000 customers warning them to regularise their tax affairs by the end of March; the number of responses received; the amount collected to date; the number of such cases finalised; and if he will make a statement on the matter. [24662/04]

I am advised by the Revenue Commissioners that precise figures are not available on the number of letters which issued from the financial institutions. It is understood to be in excess of 100,000. It is not known how many accounts or individuals this represents because some individuals had accounts in different banks or in different branches of the same bank. In other instances there was more than one name on the account.

The Revenue Commissioners have advised that, following issue of the letters by the financial institutions, written responses were received from approximately 25,000 persons. Of these, approximately 15,000 persons advised that they would submit a statement of disclosure. Approximately 10,000 persons who gave details of their offshore accounts were subsequently notified by the Revenue Commissioners that a statement of disclosure was not required. I am also advised that a further 5,000 persons, approximately, phoned the Revenue Commissioners and, on the basis of the information provided, were advised that a written response was not required.

To date the total amount collected by the Revenue Commissioners from this investigation amounts to approximately €700 million. The cases will shortly be transferred to the Revenue Commissioners' districts to finalise the affairs of the taxpayers involved.

Departmental Expenditure.

Kathleen Lynch

Question:

37 Ms Lynch asked the Minister for Finance the reason for the significant reduction in capital spending during the first nine months of 2004; his views on whether the decline in capital spending will have implications for the implementation of the national development plan; the steps being taken to address the slowdown in capital spending; and if he will make a statement on the matter. [24654/04]

Dan Boyle

Question:

43 Mr. Boyle asked the Minister for Finance the budgeted capital expenditure that has not been spent to date; and the reason such expenditure has yet to occur. [24797/04]

Bernard J. Durkan

Question:

48 Mr. Durkan asked the Minister for Finance if the underspend by various Departments in 2004 will result in a reduction in their budget in 2005. [24822/04]

I propose to take Questions Nos. 37, 43 and 48 together.

The Revised Estimates volume provided for an increase of 7.2% in net voted spending in 2004. The current indications are that expenditure for the full year will be close to this target, notwithstanding underspends to date.

Net voted capital spending during the first nine months of 2004 amounted to €2.6 billion compared to €2.8 billion 2003. It represents a 6.4% decrease on the corresponding period in 2003, compared to a REV increase of 3.5% for the year as a whole. The capital underspend is mainly due to timing reasons.

Rolling five year multi-annual capital envelopes were introduced in budget 2004 to enable Departments to plan, implement and manage their capital programmes and projects within a framework of relative multi-annual financial security. A key element of the envelopes is that Departments will be able to carry over up to 10% of voted capital from one year to the next. Whilst latest indications are that Departments generally do not anticipate significant underspends on capital at year end, they will, subject to the 10% ceiling, be able to carry over capital savings to next year. The first preliminary indication of the overall scale of the proposed capital carryover by Departments will be known when the Abridged Estimates volume is published on 18 November.

The introduction of the rolling multi-annual capital envelopes that involve a commitment to maintain public investment at 5% of GNP in the 2004-2008 period will ensure that the progress made under the NDP in addressing infrastructural needs is maintained. Total cumulative expenditure under the economic and social infrastructure operational programme to end 2003 accounts for the bulk of infrastructural investment under the NDP. It amounted to €14.9 billion, over €1 billion more than forecast originally.

Pension Provisions.

Michael D. Higgins

Question:

38 Mr. M. Higgins asked the Minister for Finance the main features of his proposals for further public service pension reform announced on 14 September; and if he will make a statement on the matter. [24650/04]

In budget 2004 my predecessor announced a package of public service pension reforms. He also indicated that further pension changes benefiting both serving and new entrant public servants, along the lines originally recommended by the Commission on Public Service Pensions, were being considered.

The recent announcement provides for changes to take place in a number of key areas of public service pension delivery. The changes concerned that form another significant element in the Government's modernisation and reform of the public service are as follows: cost neutral early retirement; integration formula; pro rata integration; teachers access to the revised spouses’ and children’s pension scheme; notional added years; reckoning of allowances for pension purposes; and the compound interest rate.

The cost neutral early retirement facility will allow public servants to retire early with actuarially reduced superannuation benefits. Workers whose current minimum pension age is 60 years will be able to avail of the facility from age 50 years and upwards. Those whose minimum pension age is 65 years will be eligible from age 55 years and upwards. The facility is being made available to serving staff and the option will be extended to staff who resigned with an entitlement to preserved superannuation benefits as and from 1 April 2004. Superannuation benefits in such cases will be based on pensionable service at the time of resignation reduced, appropriately, to take account of early payment. For example, a person with a minimum pension age of 60 years who leaves service under this facility at 55 years would have their pension reduced to 77.8% of its value. Their superannuation lump sum would be reduced to 90.7% of its value.

Public servants with full social insurance get an old age contributory pension and their public service occupational pension is reduced to take account of this fact. The process, known as integration, is an arrangement whereby, in the case of public servants with full social insurance cover, the OACP is merged with the occupational pension to provide a combined pension which, at 40 years' service, is no greater than the pension would be with an occupational pension alone. This can mean that lower paid workers get only small public service pensions or none at all where their pensionable remuneration is less than twice the OACP, currently just under €17,500.

The calculation formula underlying integration is being adjusted to deliver a boost to the public service pension income of lower paid public servants. Accrual rates under the new formula are: 1/200 for pensionable remuneration below 31/3 times OACP; and 1/80 for pensionable remuneration in excess of this limit. This will be of benefit to those whose pensionable remuneration is around €29,000 or less. The revised basis of calculation will apply to existing pensions with effect from 1 January 2004 and all relevant retirees as and from that date.

Pro rata integration, as opposed to full integration that applies at present, will apply to part-time public servants and relevant pensioners with full social insurance as and from 20 December 2001. The terms “full” and “pro rata” integration refer to different methods of co-ordinating OACP with public service occupational pension in the case of part-time employees. The new method of pro rata calculation and the new integration formula will be of significant benefit to part-time workers.

Teachers will have access to the revised spouses' and children's pension scheme. An option to join the revised scheme, available for a fixed period, will be made available to all primary and secondary teachers serving at 31 March 2004. Revised contribution rates of 2%, periodic, and 1.5%, non-periodic, will apply. Existing schemes of notional added years will be replaced for new entrants, from a current date, by a singletransitional scheme which will be reviewed in 2015.

There will be a reckoning of allowances for pension purposes. The calculation of pension on variable pensionable allowances will be based on "the best three consecutive years in the ten years preceding retirement," rather than on the present requirement of three years immediately prior to retirement. The new system will apply to relevant staff who retire or have retired from the public service as and from 1 April 2004.

The current compound interest rate that applies, in particular, to repayment of marriage gratuities will be reduced from 6% to 4% for repayments due for periods from 14 November 2000 onwards.

A number of other commission recommendations are under active consideration. They include the establishment of joint management-union working groups to consider the commission recommendations on SPEARS, a single AVC type scheme for the public service, and proposed revision of the spouses' and children's pension schemes, including benefits for non-spousal partners.

Implementation of the various changes will commence as soon as detailed guidelines have been prepared and circulated by my Department. My officials will carry out the work, as a matter of urgency.

Decentralisation Programme.

Caoimhghín Ó Caoláin

Question:

39 Caoimhghín Ó Caoláin asked the Minister for Finance if he will report on the progress to date of the decentralisation programme announced as part of budget 2004; and if he will make a statement on the matter. [24823/04]

The two reports of the decentralisation implementation group dated 31 March and 30 July provide detailed accounts of the progress made in implementing the programme announced last December. An analysis of the applications registered with the central applications facility by 7 September has also been published. I refer Deputies to the presentations made to the Oireachtas Joint Committee on Finance and the Public Service on 6 October by the chair of the implementation group. I am pleased with the progress that has been made in driving forward the programme.

Tax Code.

Ciarán Cuffe

Question:

40 Mr. Cuffe asked the Minister for Finance the reason maintenance payments made to separated spouses are considered taxable income, in view of the fact that such amounts have already been taxed. [24799/04]

Maintenance payments, depending on arrangements, made to a separated spouse may be subject to income tax in the hands of the payer or the receiver. However, the maintenance payment is not taxed twice.

The general position in the case of legally enforceable maintenance agreements is that the spouse who pays the maintenance is entitled to a tax deduction for payments made for the benefit of the other spouse. The maintenance payments are taxed in the hands of the receiving spouse and the couple are treated for tax purposes as if unmarried.

A separated couple may, except where a civil annulment has been obtained, jointly elect to be treated for tax purposes as if the separation had not taken place provided they are both resident in the State and, if divorced, neither have remarried. When such an election is made the maintenance payments are ignored for tax purposes. Therefore, the payer does not receive a tax deduction for them and the receiving spouse is not taxable on them. Where the receiving spouse has income other than the maintenance, separate assessment will apply in respect of that income. The Revenue Commissioners' information leaflet IT2, taxation of married couples, sets out how separate assessment works and is available at www.revenue.ie.

Non-legally binding maintenance payments are not taxable in the hands of the receiving spouse and the paying spouse cannot claim a tax deduction for them. However, the paying spouse would be entitled to the married person's tax credit if he or she is wholly or mainly maintaining the other spouse.

It is important to note that in the arrangements which apply, there is an underlying principle in place that income, including income in the form of the maintenance payments, should be subject to taxation. As explained above, the tax may be paid by the recipient or by the paying spouse, depending on the arrangements in place. The option in certain circumstances of tax treatment as if a separation had not taken place may result in no tax being paid by the recipient spouse but it also means that the paying spouse receives no deduction, thus ensuring that the income is subject to taxation.

If the Deputy has a particular case in mind and wishes to furnish the details, the Revenue Commissioners will examine it to ensure that the correct tax treatment applies.

Non-Resident Accounts.

Róisín Shortall

Question:

41 Ms Shortall asked the Minister for Finance the number of individuals, companies and trusts being investigated by the Revenue Commissioners arising from the Ansbacher accounts at the latest date for which figures are available; the number of cases in which settlements have been agreed and the total amount paid to date; the number of cases still outstanding; if additional action has been taken by the Revenue Commissioners arising from the report of the Ansbacher inspectors; and if he will make a statement on the matter. [24674/04]

I am advised by the Revenue Commissioners that their Ansbacher review team has inquired into 289 cases to date and 92 of these cases have concluded settlements with the Revenue Commissioners. The 289 cases, taking account of spouses and connected companies, consist of 300 names. The 289 cases are made up of 179 cases listed on the High Court inspectors' report and 110 similar cases discovered by the Revenue Commissioners or listed on the authorised officer's report.

A total of 211 cases have been under active investigation. The remaining cases consist of 62 non-resident persons, including 17 former Irish residents, 12 individuals who claimed the 1993 amnesty provisions and four cases with insufficient identity information.

The investigation includes examining the tax position of disclosed entities and accumulating and assembling information on other connected entities. The number of connected entities in cases under investigation is now nearly 700.

The Revenue Commissioners continue to make extensive use of their legislative powers to seek books, records, documents and information in the cases being investigated. Where appropriate, prosecutions will be considered but these will depend on the level of evidence available.

The Revenue Commissioners have made five successful applications to the High Court for the production by financial institutions and third parties of books, records and other documentation, which are relevant to liabilities of Ansbacher account holders. Some 150,000 documents have been received under the terms of the High Court orders. Advanced investigative computer software is used in controlling and managing the documentation.

To date, a total of €43.94 million has been received, mostly by way of payments on account, in respect of 92 cases. A breakdown is asfollows:

Cases

€ million

Cases involving Ansbacher or Ansbacher type arrangements

76

35.24

Other cases involving offshore funds or deposits

16

8.70

Total

92

43.94

The 92 cases which have concluded settlements with the Revenue Commissioners consist of 54 cases which were settled on payments of €32.47 million, included in the amount above, 25 non-resident cases that are covered by the provisions of double taxation agreements, 11 had no additional liability and two were covered by the 1993 amnesty provisions.

The Revenue Commissioners made an application under section 11 of the Companies Act 1990 for a copy of the High Court inspectors' report and that was made available on 6 July 2002. Its information has been carefully considered as regards the tax liabilities of the persons concerned. In addition, the Revenue Commissioners made a further application to the High Court for access to the supporting papers to the High Court inspectors' report. Judgment was delivered by the president of the High Court in May 2004. It allows the Revenue Commissioners access to documents on clients of Ansbacher named in the High Court inspectors' report and those persons and companies, including members of the board, found by the High Court inspectors to have failed to co-operate with their inquiry. The judgment also allows for the Revenue Commissioners to make application and grounding affidavit for the obtaining of information and documents on any other individual or company. Access to documents is subject to the direction of the High Court. The High Court orders in the matter were granted in June 2004.

The Revenue Commissioners have informed me that the investigations are time consuming and complex and are likely to continue for some time to come.

Decentralisation Programme.

Pat Breen

Question:

42 Mr. P. Breen asked the Minister for Finance if he has satisfied himself with numbers of persons from within the State agencies who have indicated a willingness to decentralise with their agencies; and his views on the assessments from some of the agencies of the risk of damage to delivery of services. [24632/04]

I accept that the number of applications to CAF from the Civil Service are much better than those from the State agencies. The Civil Service has considerable previous experience of decentralisation and has a long tradition of interdepartmental transfers.

The decentralisation implementation group asked all organisations participating in the programme to prepare detailed implementation plans, including risk mitigation plans. The plans were prepared and submitted to the group and most included risk mitigation strategies. The DIG recommended in its July report, paragraph 9.3, that in preparing the next version of its implementation plan each organisation should ensure that a risk mitigation strategy is included. I am satisfied that is a realistic approach to risk identification and mitigation.

Question No. 43 answered with QuestionNo. 37.

Ethics in Public Office.

Emmet Stagg

Question:

44 Mr. Stagg asked the Minister for Finance if his attention was drawn to the concerns expressed by the Standards in Public Office Commission about his Department’s failure to change regulations to ensure that public bodies are covered by ethics legislation; when he will take the appropriate steps to ensure that all such bodies are covered by the relevant legislation; and if he will make a statement on the matter. [24676/04]

I am aware of the comments made in the 2003 annual report of the Standards in Public Office Commission concerning the delay in revising the regulations, under the Ethics in Public Office Act 1995, made in 1996 covering Civil Service positions and in 1997 applying to directorships and positions of employment in the wider public sector.

Work on two draft regulations is at an advanced stage. One draft is intended to update the regulations covering positions in the Civil Service. Another draft is intended to update the regulations made in 1997 that cover directorships and positions of employment in public sector bodies. I intend that the latter regulations will extend the provisions of the 1995 Act to public sector bodies not already covered. They will address the concerns expressed by the commission regarding the name changes or amalgamation of bodies since 1997.

EU Tax Harmonisation.

Paul Nicholas Gogarty

Question:

45 Mr. Gogarty asked the Minister for Finance his views on the decision by the EU Council of Finance Ministers to investigate the way corporation tax can be harmonised throughout the European Union. [24801/04]

Last July the Commission published two papers on company taxation. One paper seeks an indication of the degree of support for a proposal to start developing a common corporate EU tax base while the other seeks to assess the degree of support for the Commission's proposed pilot project on home state taxation for small and medium sized enterprises.

On 11 September the papers were discussed at an informal ECOFIN meeting. Some member states, including Ireland, opposed the idea. However, a large majority supported the creation of a working group, chaired by the European Commission, to consider the idea of allowing all companies to use a common consolidated set of rules for calculating their EU wide taxable profits. The group will also consider a pilot project that would allow SMEs to use the tax rules of their home state for calculating their EU wide taxable profits.

The Commission considers that efforts should be concentrated on developing a common consolidated tax base, thereby reducing the compliance burden of companies. Commissioner Bolkestein, the outgoing Commissioner for the Internal Market and Taxation, stated that wholesale harmonisation of the tax system is not on the Commission's agenda.

Ireland's position is consistent and will continue to be clearly articulated. We support efforts to eliminate unfair business tax practices within the EU and the removal of barriers to cross-border trade and business. We are opposed to the Commission's proposals for a common consolidated base. All efforts are best spent in tackling specific issues identified as barriers to trade. In any technical discussions on a common consolidated tax base, Ireland will be seeking to protect its interests.

Ireland is also opposed to the harmonisation of corporation tax rates. It is important that the tax rights of member states are retained at national level.

Tax Code.

Gay Mitchell

Question:

46 Mr. G. Mitchell asked the Minister for Finance the cost of removing the minimum wage entirely from the scope of income taxes in 2005. [24613/04]

The statutory minimum wage is €7 per hour and is equivalent to an annualised figure of €14,196.

I am informed by the Revenue Commissioners that the full year costs to the Exchequer of ensuring no tax is paid by a single employee earning this amount would be €350 million in a full year, if done through an increase in the employee PAYE credit. It would be €525 million in a full year if the personal credit were used. If the required increase was divided between the personal and employee credits then the full year cost would be €440 million. A married one earner on €14,196 would not be liable to tax given the current level of credits. These figures are estimated by reference to projected 2005 incomes. They are also provisional and are likely to be revised.

The mid-term review of part two of Sustaining Progress — Pay and the Workplace — was published last June. It contained an agreement that the Labour Court will review the national minimum wage and make a recommendation to apply with effect from 1 May 2005, in accordance with the National Minimum Wage Act 2000.

John Gormley

Question:

47 Mr. Gormley asked the Minister for Finance if persons on early retirement pensions, with voluntary salary protection, are not entitled to participate in PRSA schemes, and avail of subsequent tax relief. [24812/04]

Relief from income tax is available for contributions to a personal retirement savings account by an individual with earnings from any trade, profession or employment. The same rule applies to other pension products. A pension is drawn down in retirement to replace earnings made before retirement. A person on an early retirement pension is thus already retired and the facility to gain tax relief on pension contributions from that income is not available. If the person has separate earnings from other employment or self employment, they would be entitled to contribute to a pension from these earnings and claim tax relief on the contributions up to age 70 or 75 depending on the product.

Question No. 48 answered with QuestionNo. 37.

National Development Plan.

Arthur Morgan

Question:

49 Mr. Morgan asked the Minister for Finance the procedures within his Department for ongoing review of the national development plan; and if he will make a statement on the matter. [24825/04]

My Department has a range of mechanisms in place for the ongoing review of the implementation of the NDP. The NDP-CSF monitoring committee plays an active role in the monitoring of the NDP. It meets at least twice yearly to receive detailed implementation reports on each of the operational programmes. The committee consists of a wide partnership of interests, including implementing Departments, the social partners, sectoral interests and members of local authorities representing the regional assemblies. My Department provides the chair and secretariat for the committee.

Each operational programme has a similar widely based monitoring committee that meets twice yearly to monitor the ongoing implementation of the programme. The managing authorities and the Department or agencies responsible for implementing specific aspects of the operational programmes have additional procedures in place to monitor and manage them.

In addition, my Department is assisted by a number of dedicated units that were established to meet the requirements of the Structural Funds regulations. These units are concerned with the proper financial control of the funds, ongoing evaluations of key elements of the NDP, collection of implementation data and providing information and publicity on the operational programmes.

As part of the ongoing review process, my Department commissioned a comprehensive review of the NDP at its mid-term. It was undertaken by a team of evaluators led by the ESRI and a report was published in November 2003. This major review was based on similar independent mid-term reviews conducted at the level of the operational programmes.

In addition to the mid-term evaluation, the NDP-CSF evaluation unit carries out periodic evaluations on key aspects of the NDP. This unit operates under the aegis of the technical assistance monitoring committee that is chaired by my Department. Key Departments also report through their Ministers to the Cabinet sub-committee on infrastructure, housing and public private partnerships on the implementation and delivery of infrastructure programmes under the NDP.

Tax Code.

Joe Sherlock

Question:

50 Mr. Sherlock asked the Minister for Finance the reason he decided not to proceed with the plan to introduce a carbon tax; and his view on the role taxation should play in the promotion of the climate change strategy. [24671/04]

A decision on carbon tax was made following a thorough examination of the issues involved, including how it would be implemented and the associated environmental, economic and social impacts. My Department also carried out an extensive consultation process in which 117 written submissions were received. Following this examination, the Government decided that a carbon tax was not an appropriate policy option and instead it would intensify action on the other measures under the national climate change strategy.

The Government concluded that the environmental benefits of a carbon tax would not justify the difficulties that would arise, particularly for households, from the introduction of such a tax. The carbon energy tax would have imposed price increases on many products already suffering sharp increases, particularly as a result of recent increases in international oil prices.

While a carbon tax would have involved a range of compensatory measures, these would not fully address the adverse economic and social effects arising. It would apply to products that are already subject to excise duties and where a new tax is not specifically necessary to increase the tax burden on such products.

The carbon energy tax was just one element of the Government's approach to meeting Ireland's commitments under the Kyoto Protocol. The Government remains fully committed to it.

Taxation can play a part in attaining environment objectives. As Minister for Finance I must ensure that policy on tax measures takes account of possible effects on Ireland's international competitiveness, particularly in relation to non-EU countries that compete with us and that may have low taxes on energy. I am also concerned, when framing policy, about the effect that the imposition of such taxes may have on the consumer price index and how they could impact on the less well off members of our community.

The national climate change strategy envisages other initiatives in the tax area with one such example being tax reliefs for green initiatives. Essentially it uses the tax system to provide incentives for certain behaviour. Such examples include capital allowances for corporate investment in renewable energy projects that have been available since 1998 and a provision in the Finance Act 2004 that provides for the introduction of a scheme for excise tax relief for biofuels. I am open minded about initiatives in the tax area that can have a positive impact on the environment. However, I must be mindful of competitiveness issues and the impact any particular measure may have on the overall community.

Decentralisation Programme.

Liz McManus

Question:

51 Ms McManus asked the Minister for Finance if 2007 remains the Government’s target for the completion of its decentralisation programme; and if he will make a statement on the matter. [24657/04]

I am satisfied with the level of progress to date in the context of the overall scale of the programme and the timeframe involved. Recently the chair of the implementation group gave a presentation to the Oireachtas Committee on Finance and the Public Service. He made it clear that he saw considerable merit in having a target timeframe. I am determined to drive forward the process of implementation and to ensure that the benefits of the programme are delivered as quickly as possible.

Tax Collection.

Willie Penrose

Question:

52 Mr. Penrose asked the Minister for Finance the progress made by the Revenue Commissioners into allegations that tax improprieties may surround trust operations in a bank (details supplied); if the Revenue Commissioners have reached a determination on whether these trusts facilitated tax evasion as distinct from tax avoidance; and if he will make a statement on the matter. [24666/04]

I am advised by the Revenue Commissioners that substantial progress has been made. Arising from the voluntary disclosure initiative, the Deputy will be aware that 254 individuals came forward and made voluntary disclosures. To date the programme has recovered in excess of €105 million for the Exchequer.

Inquiries by the Revenue Commissioners are now identifying the individuals who failed to make voluntary disclosures. They will be investigated by the Revenue Commissioners. It is clear from some of the disclosures and the amount collected to date that some trusts were used to facilitate tax evasion.

Question No. 53 answered with QuestionNo. 10.

Public Private Partnerships.

Thomas P. Broughan

Question:

54 Mr. Broughan asked the Minister for Finance if he intends to undertake any review of the public private partnership scheme in view of the recent findings of the Comptroller and Auditor General in a value for money report that five schools built under the scheme could end up costing up to 13% more than if built by the State; and if he will make a statement on the matter. [24644/04]

My Department had already taken account of many of the findings of the Comptroller and Auditor General's report in guidelines published last year and is currently engaged in producing more detailed guidelines on specific aspects of the PPPs procurement process. Two significant developments include the setting of an 'affordability cap', which is the maximum allowable budget for a project, and the appointment of a process auditor in large projects to ensure that all of the required regulatory and administrative steps have been taken in the procurement process, prior to contract signing.

In tandem with the development of these guidelines the Government brought forward legislation for the establishment of the National Development Finance Agency which provides advice on the optimal means of financing public investment projects in order to achieve value for money and on all aspects of the financing, refinancing and insurance of public investment projects.

We are still learning with regard to PPPs in Ireland and the processes and procedures will be kept under review. The grouped schools project was just one of a programme of pilot projects which also includes, for example, PPPs procured by local authorities and the toll roads being delivered by the National Roads Authority. Overall, I believe that PPPs have the potential to make an important contribution, on a value for money basis, in helping to meet the public infrastructure needs of the country.

Tax Code.

Willie Penrose

Question:

55 Mr. Penrose asked the Minister for Finance the progress made by his Department and the Revenue Commissioners in their consideration of the recommendations of the Revenue powers group; and if he will make a statement on the matter. [24667/04]

My predecessor established the Revenue powers group, under the chairmanship of Mr. Justice Frank Murphy, to examine Revenue's main statutory powers and report on changes needed. The group's report was published on 4 February 2004 and the Minister indicated at that time that he wished to allow a period for debate and public reflection on the many and varied issues dealt with in the report. Interested parties have contacted my Department and a number of submissions have been made in this regard. My Department is also discussing relevant issues with other Government Departments.

The group's recommendations and the views received on them are being examined in the context of the Finance Bill 2005.

Ruairí Quinn

Question:

56 Mr. Quinn asked the Minister for Finance the progress made to date with regard to the negotiations between the Revenue Commissioners and the authorities in the Cayman Islands with a view to the conclusion of a tax information exchange agreement; and if he will make a statement on the matter. [24665/04]

First round negotiations between the Cayman Islands authorities and the Revenue Commissioners for a tax information exchange agreement were held in Dublin on 24 November 2003. A second round of negotiations took place on 7 April 2004. A date has not yet been fixed for a further round of negotiations. As the Deputy will appreciate, it is not possible at this stage to comment on the likely outcome of the negotiations.

Coroners Service.

Brian O'Shea

Question:

57 Mr. O’Shea asked the Minister for Finance if the transfer of the State Laboratory from its present location at Abbotstown to its new location at Backweston has now been completed; the estimated final cost of the transfer; the steps being taken at the new location to ensure that delays in the completion of tests are ended, especially in view of serious concerns expressed by coroners at the delays in inquests; and if he will make a statement on the matter. [24661/04]

Joe Costello

Question:

69 Mr. Costello asked the Minister for Finance if his attention has been drawn to the serious concern expressed by coroners at delays in inquests as a result of the inability of the State Laboratory to complete test results; the steps being taken to deal with this situation in view of the distress caused to families by such delays; and if he will make a statement on the matter. [20695/04]

I propose to take Questions Nos. 57 and 69 together.

I am informed by the State chemist that it is anticipated that the relocation will take place in stages between November and January next year. The project team will have the new location and equipment ready for each of the nine sections of the laboratory, which will then move in turn, keeping disruption of testing and other laboratory procedures to a minimum. Particular care will be taken in this regard in the case of the toxicology section which handles reports for the coroners.

The overall final cost of the facility at Backweston is estimated to be €87.5 million including €9 million provided in 2004 for equipment.

I am conscious of the importance of the service provided to the coroners by the State Laboratory and the impact it inevitably has on relatives of people whose deaths are the subject of inquests at a time of great distress. I know that the management of the laboratory shares that sensitivity and constantly monitors the service by reviewing available resources, outsourcing possibilities and the complexity of analyses.

Additional resources have been allocated to the toxicology section and there has been a substantial increase in the number of analyses completed. However, there is still a backlog of cases, due to an increase of 50% in the past two years in the number of cases referred and a general increase in the complexity of the analyses required.

A range of measures are being taken at present to reduce the turnaround time of samples sent to the laboratory and processed by its toxicology section. Additional priority is to be given to the coroners' cases over other work of the section. Laboratory management is also reviewing the procedures and processes in the toxicology area with a view to automating as much as possible.

I am told by the management of the laboratory that the completion of the relocation to Backweston will enable the enhancement of the quality of service provided to all its clients, including the coroners' service.

Tax Code.

Trevor Sargent

Question:

58 Mr. Sargent asked the Minister for Finance the situation regarding the study of the tax status of the horse breeding industry. [24817/04]

It is not clear what is the precise study that the Deputy is referring to in the question. The Deputy may be referring to the provisions in the Finance Act 2003 which required details of all income and gains, as well as any losses, arising from stallion fees to be returned to the Revenue Commissioners. The first of these returns for individuals under self assessment rules will be required by 31 October 2005 in respect of the current tax year, 2004. The date of the return for companies will vary depending on the company's accounting period. Where a company has a calendar year accounting period, which is the case for many companies, the return will be required by 30 September 2005 in respect of the tax year 2004. In this context the information on costs is not yet available.

Alternatively, the Deputy may be referring to a recent report which was produced by Indecon, the economic consultants, entitled An Assessment of the Economic Contribution of the Thoroughbred Breeding and Horse Racing Industry in Ireland. This report was commissioned jointly by the Irish Thoroughbred Breeders' Association, the European Breeders' Fund and Horse Racing Ireland. The report was published last July and is available from any of the commissioning parties. A copy was also received by my Department.

Banking Sector Regulation.

Joan Burton

Question:

59 Ms Burton asked the Minister for Finance the action which has been taken by his Department and the Revenue Commissioners arising from the report of the High Court inspectors on a bank (details supplied) which was published on 30 July 2004; and if he will make a statement on the matter. [24642/04]

I am advised by the Revenue Commissioners that prior to the receipt of the report of the High Court inspectors, the Revenue Commissioners were investigating investments made by individuals through the financial institution named. Settlements made to date with individuals amount to €48.12 million in respect of tax, interest and penalties with a further €4.7 million received as payments on account of the individuals' final liability. The investigations into the tax liability of the remaining cases are continuing. The report of the High Court inspectors is being examined in detail as part of the Revenue Commissioners' continuing investigation, including the possibility of prosecution of offences under the taxes Acts should the appropriate evidence be available.

Apart from the tax matters, the behaviours outlined in the report may suggest weaknesses or failings in compliance with certain other regulatory and legislative requirements, such as those relating to money laundering, exchange controls and notification of fees and charges. The findings in the report and the bank's response are being examined in detail by the Irish Financial Services Regulatory Authority, IFSRA, which has already stated that any actions or measures that are required will be taken. In light of this and other widely reported issues IFSRA is currently engaged in an industry wide exercise focusing on appropriate systems and controls to ensure that all credit institutions are fully in compliance with all relevant laws and requirements. IFSRA is also making sure that there is proper monitoring of the fee and interest reimbursement programme, which has been commenced by the bank.

The role of the Minister for Finance in financial regulation is to bring forward legislative proposals whereby a duly empowered financial regulator can regulate and supervise the financial sector in accordance with those powers. The necessary legislative framework has been put in place and day to day responsibility for the supervision of credit institutions is a matter for IFSRA. IFSRA is independent in the exercise of its supervisory functions and my Department does not get involved in its day to day activities. However, my Department has recently written to IFSRA seeking its views as to whether there are any issues to be addressed regarding the reported practices, and in particular on whether any legislative change might be required to strengthen the regulatory framework in this regard.

The regulatory structures governing financial institutions have changed enormously in recent years, taking into account many of the lessons already learnt from this case and others. However, if further examination by IFSRA or my Department indicates that additional powers are required to prevent a recurrence of similar practices I will address that as a matter of priority.

The exchange control implications of this case were first raised in early 1998, and as this House has previously been informed, were investigated by the Central Bank, at the request of the then Minister for Finance. The bank's interim report to the Minister for Finance in May 1998 was not conclusive and the bank indicated that it would defer concluding its consideration of exchange control matters pending the finding of other investigations. Legal advice at the time was that the report was not sufficient to warrant its referral to the DPP. It should be noted that exchange controls were phased out progressively, especially from 1988 and were finally abolished on 31 December 1992. My Department has written to the governor of the Central Bank asking him to arrange for a review of the situation having regard to both the recent High Court inspectors' report and the 1998 report of the authorised officer.

Finally, the report has been referred to the DPP and criminal charges might therefore follow. While it would not be a matter for me, the relevant authorities will presumably consider whether the behaviours reported in this case are of a type that could also have potential implications for named individuals both from a company law and a financial services regulatory point of view.

Tax Code.

Dan Boyle

Question:

60 Mr. Boyle asked the Minister for Finance if he is planning a review of tax relief on pensions, in view of the fact that such relief for private personal pensions now exceeds the amount being spent on direct non-contributory State pensions. [24798/04]

There are two main components to the pensions system in Ireland, a flat rate social welfare pension that provides a basic payment and a supplementary component on a voluntary basis that provides an earnings related component. Expenditure on means tested social welfare pensions is estimated at €725 million in 2004. The State encourages persons to supplement the State pension with private pension provision by offering tax relief on such pension provision.

The cost of tax relief for private pension funding for 2000-01 has been estimated by the Revenue Commissioners at €2,615 million. This covers tax relief on contributions by employers, employees and self employed and the exemption from income and gains in the pension fund. However, as a quid pro quo for these reliefs, tax arises when the income is withdrawn from the pension fund in retirement. Furthermore, there are limits on the tax relief in the form of a cap on the level of earnings that qualifies for relief and a limit on the pension benefits payable. It should be noted that these costs are very tentative and that efforts are being made to improve information on the cost of tax relief for pensions.

A large part of the tax foregone relates to the working age group while the non-contributory pension costs relate to those over 66 years, which is a different group.

The national pensions policy initiative, NPPI, report in 1998 recommended that the existing tax relief regime for pension contributions should not be diluted. This structure of taxation treatment for pensions is long standing and has helped a significant portion of the labour force to arrange supplementary pensions thereby lessening the pressures on the Exchequer to fund pension needs. This approach, though long standing in Ireland and some other countries, is now gaining wider emphasis in other EU countries.

While the tax relief arrangements for pensions are kept under review and considered in the context of annual budgets and finance Bills, I do not envisage that it would be desirable to move from the current policy of encouraging pension provision through tax relief for private pension provision, given the ageing population and the Government policy of increasing pension coverage.

Departmental Properties.

Joe Costello

Question:

61 Mr. Costello asked the Minister for Finance the plans for the disposal of the old Department of Justice, Equality and Law Reform offices at St. Stephen’s Green; the amount expected to be raised by the sale; if this money will be available for use by his Department; and if he will make a statement on the matter. [20736/04]

The old Department of Justice, Equality and Law Reform building at 72 to 76 St. Stephen's Green has recently been disposed of for a figure of €52.3 million. The money raised from the sale of the property will go towards the funding of the decentralisation programme.

Banking Sector Regulation.

John Gormley

Question:

62 Mr. Gormley asked the Minister for Finance his policy on encouraging or discouraging further bank mergers in the financial sector here. [24813/04]

The Government has not adopted any policy stance either encouraging or discouraging further mergers or takeovers in the banking sector. Any such proposal would fall to be considered in accordance with the provisions of national and EU competition legislation and also under banking regulation legislation.

Where any acquisition would involve more than a 10% stake in a bank, the Irish Financial Services Regulatory Authority, IFSRA, is required to make a decision as to whether to approve the takeover from the point of view of the orderly and proper regulation of banking. The Minister for Finance must approve mergers involving more than 20% of total banking assets in the State, after consulting the Minister for Enterprise, Trade and Employment.

Separately, various competition rules apply. The Irish Competition Authority or the EU Commission must generally also give a clearance.

It is, of course, essential that any new entity be properly managed and regulated, and the legislative provisions for this regulation have been much enhanced over the past two years. The Central Bank and Financial Services Authority of Ireland Acts 2003 and 2004 represent a radical restructuring of financial regulation in Ireland: for example, the establishment of a single structure to take in work previously done by four separate bodies, the greater emphasis on consumer concerns, the enhancement of the regulator's powers, including in administrative sanctions, enhanced provision for co-operation between the various authorities, the provision for establishment of a statutory financial services ombudsman scheme and of new consultative mechanisms for consumers and industry. All of these achievements will contribute to the better regulation of the sector.

However, it is my intention, of course, to learn from the experience of the operation of IFSRA and from various recent and expected reports, so as to keep our legislative framework efficient and up to date. I have recently initiated a public consultation process with a view to consolidating, simplifying and updating our financial services legislation. My ongoing aim is to ensure that our legislation continues to meet the Government's consumer protection and stability objectives in a way that minimises the regulatory burden on industry and otherwise complies with the Government's better regulation agenda, and promotes the development of a sector that is competitive both domestically and internationally and operates to high standards.

EU Presidency.

Eamon Gilmore

Question:

63 Mr. Gilmore asked the Minister for Finance the final cost to the Exchequer arising from Ireland’s presidency of the EU; the way in which the final figures compare with the original estimate; and if he will make a statement on the matter. [24648/04]

In the 2004 Estimates, the Government set aside €64.24 million to meet the additional costs associated with Ireland's tenure as President of the European Union. In 2003, an amount of approximately €15.3 million was spent on additional costs incurred in the lead up to our term of office.

From the information reported to my Department the latest indications are that the final cost in 2004 will be approximately €94.5 million. These costs, including general staffing, training, accommodation, cultural events, communications and information technology and transport and security, represent once-off expenditure necessary to ensure a successful discharge of the functions and responsibilities arising from Ireland's EU Presidency.

This was the sixth occasion that Ireland has undertaken the Presidency of the European Union. Since the last Irish Presidency in 1996, there has been a significant increase in the work load of the Presidency, notably in the areas of common foreign and security policy and in justice and home affairs. In addition, Ireland was the first member state to preside over a further enlarged Union of 25 member states with the addition of ten new member states during our term. Deputies will appreciate the difficulties of accurately estimating costs for a substantially changed and enlarged event and a much changed security environment.

During the Presidency, 36 ministerial summit level meetings were held in various locations throughout the country. The provision of the necessary logistical support and infrastructural services for these meetings involved a huge amount of work and cost.

The level of works, services and costs involved in the 1 May enlargement ceremony and in the EU-US summit were substantially higher than anticipated. In particular, the direct and ancillary security costs, such as temporary accommodations for Garda personnel, security fencing, lighting and so forth, incurred in respect of these events was significant.

Stability and Growth Pact.

Eamon Gilmore

Question:

64 Mr. Gilmore asked the Minister for Finance his views on the need for reform of the Stability and Growth Pact; and if he will make a statement on the matter. [24649/04]

The Stability and Growth Pact is an important framework that underpins sound macroeconomic policies within the EU's economic and monetary union, and thereby promotes economic growth and job creation. Equally, however, the need for improvements in the workings of the Stability and Growth Pact has been recognised for some considerable time. In response to this need, the European Commission presented a formal communication on 3 September 2004, outlining its proposals for strengthening economic governance and clarifying the implementation of the Stability and Growth Pact.

The Commission's proposals are quite wide ranging and detailed, and the process of discussion and debate is in its early stages. However, some of the key proposals accord well with Ireland's economic priorities. Ireland has long argued, for example, that countries with very low debt levels and with clear investment needs should not be unduly constrained from making the necessary resources available. The Commission proposals represent a welcome move in this direction. I look forward to engaging in a constructive debate with my EU colleagues on this point, and on other proposals for enhancing the Stability and Growth Pact, in the months ahead.

At the informal meeting of the eurogroup and the ECOFIN council on 10 and 11 September 2004, Ministers issued a statement agreeing that the Commission communication provides a good basis for discussion. The statement reiterated that the 3% deficit and 60% debt criteria in the treaty were of paramount importance and that any changes to the pact's regulations should be minimised, if necessary at all. The statement also emphasised that Ministers are not looking for a watering down of the pact, but rather for a strengthening, clarification and better implementation.

Non-Resident Accounts.

Róisín Shortall

Question:

65 Ms Shortall asked the Minister for Finance the number of High Court orders sought to date by the Revenue Commissioners under the Finance Act 1999 to require financial institutions to supply names, addresses and other relevant information regarding holders of bogus accounts at the latest date for which figures are available; the number of cases in which orders have been granted; the general progress made to date in identifying the holders of such accounts who did not avail of the recent voluntary disclosure scheme; and if he will make a statement on the matter. [24673/04]

Authorised Revenue Commissioners officers are empowered to make an application to a judge of the High Court seeking an order requiring financial institutions to supply names, addresses and other relevant information concerning account holders who may have held bogus non-resident deposit accounts. Such applications are made under section 908 of the Taxes Consolidation Act 1997, as amended by the Finance Act 1999. Information supplied by the financial institutions under section 908 orders is the principal basis for identifying bogus non-resident account holders who did not avail of the voluntary disclosure scheme in 2001. This inquiry work commenced on 16 November 2001.

I am advised by the Revenue Commissioners that 18 applications for orders under section 908 have been made and have been granted. When one includes institutions which have been taken over or amalgamated with other institutions, these orders seek information in respect of accounts in 26 financial institutions. No further applications for such orders are pending in regard to the bogus non-resident account inquiries.

A large volume of information has been reported to the Revenue Commissioners under the High Court orders. Inquiry work in the examination of the first batch of taxpayers commenced on 11 October 2002. Further general issues of inquiry letters were made in January, May, July, September, October 2003 and January 2004. These general inquiry letter issues relate to 91,000 non-resident accounts that had Irish addresses connected to them. A total of 177,000 inquiry letters have been issued to taxpayers in respect of these non-resident accounts. The final general inquiry letter issue took place in January 2004.

While it is clear that this is an extensive investigation programme the Revenue Commissioners have informed me that they are satisfied that significant progress has been made in this the final phase of the investigations. Since 15 November 2001 payments of €325 million have been made to the Revenue Commissioners by taxpayers who held bogus non-resident accounts.

Decentralisation Programme.

Paul Nicholas Gogarty

Question:

66 Mr. Gogarty asked the Minister for Finance his views on whether decentralisation as promoted by the Government cannot now proceed to the extent or in the time period originally proposed. [24802/04]

I am satisfied with the level of progress that has been achieved to date in the context of the overall scale of the programme and the timeframe involved. I note that in his recent presentation to the Oireachtas Committee on Finance and the Public Service the chair of the implementation group made it clear that he saw considerable merit in having a target timeframe. I am determined to drive forward the process of implementation and to ensure that the benefits of the programme are delivered as quickly as possible.

Pat Rabbitte

Question:

67 Mr. Rabbitte asked the Minister for Finance the way in which the proposed centralised application system will work for Dublin based civil servants who do not wish to move as part of the Government’s decentralisation programme in regard to the recent announcement; and if he will make a statement on the matter. [18313/04]

Under the Government's decentralisation programme, the central applications facility, or CAF, offers 9,558 posts: 7,213 in the Civil Service and 2,345 in State agencies. Separate arrangements apply for senior posts in Departments and State agencies and the Defence Forces and Garda Síochána.

On 7 September, the closing date for the preliminary round of applications, a total of 8,958 people lodged applications for or expressions of interest in a move under the programme. In the Civil Service, 4,236 Dublin based staff want to move out of Dublin either to the new locations identified in the programme or to existing decentralised offices; a further 577 State agency employees want to move out of Dublin to these locations, giving a total of 4,813 who want to move out of Dublin, equivalent to 50% of the posts available. In my view, these results are a very significant milestone in the implementation of the programme.

The CAF will remain open throughout the decentralisation programme to receive further applications and expressions of interest from staff.

At present, the Civil Service Commission, which operates the CAF, is working to produce lists of names, addresses and grades of staff who have applied so that detailed planning of the necessary transfers within and between Departments can start. It is expected that this information will be available soon.

The Government and the decentralisation implementation group, chaired by Mr. P. Flynn, have continually stressed that, as the programme is entirely voluntary, special attention must be paid to the interests of those staff who, for a range of personal and other reasons, have decided not to relocate from Dublin. The personal and career needs of those who opt to remain in Dublin are just as important as the needs of those who decide to relocate.

Discussions have been held with the Civil Service and public service unions on the procedures used to deal with applications under the CAF. A document which records the main features of these discussions on human resource issues is on the CAF website.

In the light of the information on numbers and grades already available from the CAF, further discussions are about to begin between the management side and the unions on the next stages of the programme. These discussions will concentrate, in particular, on the transfer arrangements for staff who have applied under the CAF for moves within and between Departments, and also on the most appropriate ways of supporting those staff who do not wish to relocate.

Staff serving in areas which are being decentralised and who wish to remain in Dublin will also have to be reassigned, if possible to other posts in their existing Departments and offices or else to other Departments and offices. It is clearly in the interests of all staff and of the efficient implementation of the programme that the approach to be adopted in managing this meets staff needs and the business needs of their employing Departments and organisations. Detailed arrangements for managing this will be an important feature of the new round of discussions.

Public Service Salaries.

Thomas P. Broughan

Question:

68 Mr. Broughan asked the Minister for Finance if his approval was sought and given for the salary payable to the newly appointed chief executive of the Health Services Executive; if his attention has been drawn to concern expressed by senior public servants that the salary scale agreed for this position will create serious anomalies in regard to pay levels for other senior positions in the public service; and if he will make a statement on the matter. [24645/04]

The salary which has been agreed for the newly appointed chief executive officer of the Health Service Executive, HSE, was approved by my predecessor, Deputy McCreevy.

The CEO of the HSE will have responsibility for leading the HSE through its establishment phase to be an effective and efficient manager of overall service delivery in the health service. This will involve managing the reformed health service to deliver the goals and objectives of the Government reform programme. In light of the particular challenges arising for the first appointee to this post, my predecessor agreed to a special package in order to attract a suitably qualified high calibre candidate.

I do not accept that the salary agreed for the first incumbent of this post will create serious anomalies elsewhere in the public service. The salary was set in the context of the establishment of a new body which will be a bigger and more complex organisation than any of the other non-commercial State sponsored bodies. The CEO will be responsible for a budget of €10 billion approximately and an approved level of staff of about 100,000. The appointment is for a five year fixed term and is non-renewable.

The package has been agreed on an exceptional basis in the light of the uniqueness of the position and the particular circumstances arising for the first appointee. The remuneration of subsequent CEOs of the HSE, like that of all other top public service posts, will be determined by the review body on higher remuneration in the public sector.

Question No. 69 answered with QuestionNo. 57.

Tax Code.

Eamon Ryan

Question:

70 Mr. Eamon Ryan asked the Minister for Finance the tax relief given to date under the Finance Act provision to encourage the development of private health facilities; and if he will make a statement on the matter. [24814/04]

A scheme of capital allowances in respect of capital expenditure on the construction or refurbishment of buildings used as private hospitals was introduced in Finance Act 2001 and extended in 2002 to sports injury clinics and to day care hospitals in 2003. The local health board is required to certify that the hospital complies with certain conditions of the scheme such as range of services provided.

I am informed by the Revenue Commissioners that tax relief for these schemes are not at present captured in such a way as to provide a specific basis for compiling estimates of cost to the Exchequer of these schemes.

My Department has been working closely with the Revenue Commissioners to seek improved information on the costs of individual tax reliefs to facilitate assessments of these tax reliefs. On foot of this work, the Revenue Commissioners will be introducing a number of changes to the forms relating to the annual return of income in respect of the tax year 2004. These changes will yield additional information regarding the cost of various tax reliefs, including this one. Provisions in the Finance Act 2004 underpin these changes.

I understand from the Department of Health and Children that that Department is aware of a number of proposals to develop private health care facilities which are at various stages of planning and development, and which may come within the provisions of the relevant legislation.

Departmental Programmes.

Caoimhghín Ó Caoláin

Question:

71 Caoimhghín Ó Caoláin asked the Minister for Finance if he will report on the progress to date on efforts to extend the PEACE II programme to 2006 and to establish a PEACE III programme; and if he will make a statement on the matter. [24824/04]

I am very aware of the valuable role the PEACE II programme has played in building peace and reconciliation in Northern Ireland and the Border region and am hopeful that it will be extended for a further two years as proposed.

Officials in my Department are working closely with the Department of Finance and Personnel in the North, the special EU programmes body, SEUPB, and the Commission to make sure that the possibility of an extension is realised. The SEUPB, which manages the programme, carried out extensive public consultation over the summer to find out how, if the extension is granted, the additional moneys should be focused. There was a very good response to this consultation; over 70 written responses and a wide attendance at public meetings. This shows the high level of engagement with the PEACE II programme. Based on these consultations my Department, in conjunction with the Department of Finance and Personnel in Northern Ireland, submitted proposals for an extension to the European Commission on 30 September last.

The proposal requires a Commission decision and ratification by the European Parliament by the end of the year. I am hopeful that we can get a positive decision so that further funding will be available under an extended programme in 2005 and 2006.

As the Deputy is aware, the proposed extension would bring the programme in line with other Structural Funds programmes which run to 2006. Spending in the PEACE II programme may occur until 2008. A PEACE III programme would form part of the 2007 to 2013 financial perspective. Discussions on post-2006 Structural Funds are at a very early stage. In due course, a PEACE III package will be considered as part of the 2007 to 2013 financial perspective.

Tax Code.

Brian O'Shea

Question:

72 Mr. O’Shea asked the Minister for Finance the progress made to date with regard to the commitment given in An Agreed Programme for Government to remove all those on the national minimum wage from the tax net; the steps he intends to take to ensure that this commitment is honoured; and if he will make a statement on the matter. [24660/04]

The Deputy will be aware that the Government programme, An Agreed Programme for Government, states that "over the next five years our priorities...will be...to achieve a position where all those on the minimum wage are removed from the tax net". The five year period mentioned commenced when the Government was elected to office in 2002. It is also the case that the commitment to exempt the minimum wage from tax is given in the context of a broader economic and budgetary strategy which provides, among other things, that the public finances will be kept in a healthy condition and that personal and business taxes will be kept down in order to strengthen and maintain the competitive position of the Irish economy. The current national partnership agreement Sustaining Progress contains a commitment in generally similar terms.

The statutory minimum wage is an average hourly rate of gross pay for an employee as defined under the National Minimum Wage Act 2000. The wage currently stands at €7 per hour having been increased on 1 February 2004 from the previous amount of €6.35 per hour. The annualised equivalent of the present minimum wage is just under €14,200.

As the Deputy will be aware, it was the present Government who legislated for the introduction of the statutory minimum wage which came into effect in April 2000. At that time less than 64% of the annualised figure of €11,330, £8,923, was exempt from taxation. In budget 2002, 90% of the minimum wage became exempt from tax and this position has been maintained in budgets 2003 and 2004 even though the minimum wage has increased twice in the intervening period. Currently, the position is that a single PAYE person may earn up to €12,800, that is, 90% of €14,200, without paying tax.

The Government has made clear that it intends to complete its programme over the remainder of its term of office and I will be addressing the exemption of the minimum wage from taxation in that context. However, the question of when those earning the amount equivalent to the statutory minimum wage annualised will not be liable for income tax is a matter for consideration in the context of the annual budgets over the next number of years consistent with the Government's overall economic and budgetary strategy.

Garda Stations.

Jimmy Deenihan

Question:

73 Mr. Deenihan asked the Minister for Finance if his Department has acquired a site for the new Garda station at Castleisland, County Kerry; and if he will make a statement on the matter. [24586/04]

The Commissioners of Public Works continue to negotiate for a suitable site in Castleisland for a new Garda station.

The commissioners have identified a number of sites which are regarded as suitable by the Garda. However, despite extensive negotiations and a number of firm offers, it has not yet been possible to agree an acceptable price. The prices quoted to date are significantly above the open market value in each case.

The commissioners will, of course, continue with their efforts to acquire a suitable site for the gardaí in Castleisland.

Tax Code.

Ruairí Quinn

Question:

74 Mr. Quinn asked the Minister for Finance the progress made by the Revenue Commissioners in their discussions with the Portuguese authorities with a view to closing off a tax loophole which allows those who sell off assets here to avoid tax by taking up residence in such countries as Portugal; and if he will make a statement on the matter. [24664/04]

I am informed by the Revenue Commissioners that a further round of negotiations between the authorities in Portugal and the Revenue Commissioners for a protocol to amend certain provisions of the Ireland-Portugal double taxation convention took place in Dublin on 10 and 11 May 2004. The negotiations on a protocol, designed to address the issues, are at an advanced stage and it is hoped that the formal signature of the protocol will take place in the coming months. The protocol would then be ratified during 2005.

It should also be noted that section 69 of the Finance Act 2003 amended Irish domestic law to impose a charge to capital gains tax on an individual in respect of a deemed disposal of certain assets on the last day of the last year of assessment for which the individual is taxable in the State, prior to becoming taxable elsewhere, where the individual disposes of these assets while resident outside the State and returns to the State within five years. This anti-avoidance measure was announced in the 2003 budget on 4 December 2002, with effect from that date.

Tax Compliance.

Pat Rabbitte

Question:

75 Mr. Rabbitte asked the Minister for Finance the number of breaches detected of the Waiver of Certain Tax, Interest and Penalties Act 1993 in respect of each year since 1994; the number of prosecutions initiated and convictions secured arising from such detections; if he has satisfied himself that the law is being applied in the manner intended by the Houses of the Oireachtas; and if he will make a statement on the matter. [24668/04]

I understand that there are two ways in which a taxpayer may have been in breach of the amnesty, first, in making a false declaration, or, second, in not making a declaration. I am informed by the Revenue Commissioners that they do not have figures for the number of detected breaches of the amnesty. Due to the confidentiality conditions built into the 1993 amnesty legislation such breaches are difficult to identify and prove.

No individual has been successfully prosecuted to date for failure to comply with the obligatory provisions of the Waiver of Certain Tax, Interest and Penalties Act 1993. As the Deputy is aware, growing numbers of individuals and companies have been successfully prosecuted in recent years as a result of Revenue Commissioners investigations, and although these investigations have in some instances involved consideration of possible amnesty breaches, it was not possible in any of them to obtain the evidence necessary to meet the required standards of "beyond reasonable doubt" with regard to those offences.

The Revenue Commissioners' criminal investigation programmes have been refocused recently with the establishment of an investigations and prosecutions division, one of whose functions is to increase the number of prosecutions for serious tax evasion. Where in the course of investigations, amnesty offences are identified they will be investigated with a view to taking a criminal prosecution.

Given the evidential difficulties which arise in successfully bringing a case through the courts for amnesty non-compliance, and having regard to their focus on taking prosecutions for breaches of tax law, I am satisfied that the Revenue Commissioners are making every effort to ensure the law is applied in the manner intended by the legislation as passed by the Houses of the Oireachtas.

Question No. 76 answered with QuestionNo. 31.
Question No. 77 answered with QuestionNo. 29.

Tax Code.

Eamon Ryan

Question:

78 Mr. Eamon Ryan asked the Minister for Finance the tax relief given to date under the Finance Act provision to encourage development through the experimental use of biofuel; and if he will make a statement on the matter. [24815/04]

I assume the Deputy is referring to section 98(a) of the Finance Act 1999 as inserted by section 50 of the Finance Act 2004 which provided for the introduction of a scheme for excise tax relief for biofuels. The purpose of the scheme is to allow qualified and conditional relief from excise of biofuel used in approved pilot projects for either the production of biofuel or the testing of the technical viability of biofuel for use as a motor fuel.

The details of the scheme are currently being finalised in conjunction with the Department of Communications, Marine and Natural Resources. The European Commission has confirmed that the scheme would represent a State aid and consequently its approval is required. The EU energy tax directive of 2003 envisages such tax relief and the Commission has approved schemes for excise relief of biofuel in other EU member states. Formal application for Commission approval will be made shortly and, assuming approval is granted, the necessary commencement order will then be signed.

Company Investigations.

Michael Ring

Question:

79 Mr. Ring asked the Minister for Enterprise, Trade and Employment the person who was involved in the investigation by his Department into a company (details supplied) including details of members of the legal profession; the amount these persons have been paid on an individual basis; the expenses they have received; and other costs in this investigation. [24941/04]

The investigation in question is one of three investigations under section 19 of the Companies Act 1990 remaining to be concluded. The investigations are being carried out by an official of my Department, appointed as an authorised officer under section 19. He is being assisted by other departmental staff. The authorised officer is further assisted by a legal adviser as required. The authorised officer and the departmental staff are paid their Civil Service salaries. In the most recent 12 months an amount of €92,263, inclusive of VAT of €16,012.50, was paid in respect of legal advice to the legal adviser assisting the authorised officer. In the same period an amount of €7,388.44 was paid to a law firm based outside this jurisdiction for work carried out on behalf of the authorised officer.

The total costs incurred since 1997 on the 16 company investigations initiated by or on behalf of my Department currently amount to approximately €10.8 million, of which approximately €1.6 million was spent on section 19 investigations, including the three outstanding section 19 investigations. This amount does not include the salary costs of Civil Service staff working on a number of these investigations or the legal costs which are primarily being borne by the Vote of the Chief State Solicitor. Costs incurred by the authorised officer relate mainly to legal advice and stenographer fees.

Michael Ring

Question:

80 Mr. Ring asked the Minister for Enterprise, Trade and Employment if an investigation by his Department into a company (details supplied) is complete; if so, when it will be published; and when the witnesses who had to appear will be reimbursed for their legal costs. [24942/04]

The investigation in question is one of three investigations under section 19 of the Companies Act 1990 remaining to be concluded. The authorised officer has been directed by my predecessor to cease investigative work and to commence writing up his reports with a view to facilitating appropriate follow up action as soon as possible by the relevant authorities. My Department is currently in discussion with the authorised officer regarding an updated timetable for the completion of these investigations.

Reports of investigations under section 19 of the Companies Act 1990 are not published. Section 21 of the 1990 Act provides that the information obtained under section 19 may be disclosed only in certain circumstances, for example, where disclosure is necessary for further investigation or for the purposes of a prosecution, for the purpose of taking action to disqualify a person from acting as an officer of a company, for assessing a person's tax liability, in order to assist a tribunal of inquiry or where the information would assist the work of certain specified competent authorities. A decision on this can only be taken when the reports have been received.

The investigation in question is being conducted by an authorised officer appointed by me under section 19 of the Companies Act 1990, which provides that the Minister or an authorised officer appointed by the Minister may require the production of books or documents of a company or other body corporate carrying on business in the State, if the Minister is of the opinion that there are circumstances suggesting inter alia that it is necessary to determine if an inspector should be appointed to the company or that its affairs are being conducted with intent to defraud or the body was formed for fraudulent or unlawful purposes. This power includes a power to require production of documents from individuals and to require individuals to provide explanations to the authorised officer and to give all assistance to the authorised officer as the individual is reasonably able to give in connection with the investigation. In this respect, it is an offence for an individual not to comply with a request by the authorised officer.

Witnesses called by the authorised officer are complying with their statutory obligation to assist the investigation. The question of whether they wish to be accompanied by their legal representative is entirely a matter for the individuals concerned.

There is no specific legal provision covering payment by the Minister of costs under a section 19 enquiry. The question of whether costs would be reimbursed on an ex gratia basis in any particular case could only be considered when the investigation had been completed and the report of the authorised officer had been received in the Department, after careful consideration of the applicant’s involvement in the matters under investigation, including a consideration of any views of the authorised officer, and the nature and quantum of the costs for which reimbursement was sought.

Grant Payments.

Cecilia Keaveney

Question:

81 Cecilia Keaveney asked the Minister for Agriculture and Food the position regarding an application for funding by a co-operative (details supplied) in County Donegal; and if she will make a statement on the matter. [24867/04]

My Department has received a grant application from the co-operative under the capital investment scheme for the marketing and processing of certain agricultural products. This application is being assessed and a decision will be taken in the coming weeks.

Afforestation Programme.

Dan Neville

Question:

82 Mr. Neville asked the Minister for Agriculture and Food if she will arrange removal of trees severely restricting light to the house of a person (details supplied) in County Tipperary. [24868/04]

The plantation adjacent to the land of the person in question was established in 1993. At that time a "set back' distance of 30 meters from any dwelling house was applicable for plantations grant aided by the forest service of my Department. As there were no breaches of the environmental guidelines relating to the grant aiding of the plantation, I regret I cannot compel the plantation owner to remove trees. This is a matter for resolution between the plantation owner and the person concerned. The removal of trees would require the granting of a felling licence by the forest service.

Grant Payments.

Dinny McGinley

Question:

83 Mr. McGinley asked the Minister for Agriculture and Food when area based compensatory allowance will be awarded to a person (details supplied) in County Donegal. [24884/04]

The holding of the person named was selected for an on the spot inspection. The inspection has been completed and his 2004 area aid application fully processed with a forage area determined for payment purposes of 40.63 hectares. Payment of his full entitlement under the 2004 area based compensatory allowance scheme will issue shortly.

Jimmy Deenihan

Question:

84 Mr. Deenihan asked the Minister for Agriculture and Food when a decision will be made on the appeal by a person (details supplied) in County Kerry against the decision rejecting their application for consideration of a force majeure case, regarding a single payment application; and if she will make a statement on the matter. [24893/04]

The person named applied for consideration of force majeure-exceptional circumstances on 19 January 2004 on grounds of animal disease outbreak during the reference period and was notified that he was deemed ineligible for force majeure. However, having fully examined the circumstances outlined by the person named, my Department is satisfied that force majeure circumstances should apply in this case. The reference years 1997, 1998 and 1999 will be used in the calculation of the provisional entitlements. The person named will be notified shortly of this decision.

Milk Quota.

Denis Naughten

Question:

85 Mr. Naughten asked the Minister for Agriculture and Food if an application for hardship milk quota for a person (details supplied) in County Roscommon will be approved; and if she will make a statement on the matter. [24919/04]

Allocations of milk quota from the national reserve are granted on the basis of recommendations from the milk quota appeals tribunal. The tribunal is a body established to consider and advise on applications for additional quota from individual producers who have suffered severe hardship in the context of the milk quota system.

The person named submitted an application for additional quota on the grounds of hardship in the 2003-04 milk quota year. However, there was insufficient quota available in the 2003-04 milk quota year to enable the tribunal to deal with all applications received and some, including that from the named individual, were held over for consideration in the current 2004-05 quota year. A letter issued to him outlining this position.

The tribunal will examine the cases referred to above in the next few weeks and, when the application of the person named has been considered, he will be notified of the outcome accordingly.

Grant Payments.

Denis Naughten

Question:

86 Mr. Naughten asked the Minister for Agriculture and Food , further to Parliamentary Question No. 85 of 8 July 2004, the status of the appeal; and if she will make a statement on the matter. [24920/04]

The person named, having been notified that the circumstances outlined by him did not satisfy the criteria for force majeure-exceptional circumstances under Article 40 of Council Regulation (EC) No. 1782/2003, submitted an appeal to the independent single payment appeals committee. Following a full examination of the circumstances outlined in the appeal, the committee made a recommendation and a letter issued to the person named on 2 September 2004. The findings of the committee were that the original decision taken by my Department should be upheld.

Pigmeat Sector.

Ned O'Keeffe

Question:

87 Mr. N. O’Keeffe asked the Minister for Agriculture and Food if a copy of the Prospectus study on the pig industry, published in 2000, will be made available, which she referred to in page 2, paragraph 4, of her speech to the House on 5 October 2004; the date on which this study was published; and if this study was available in the Oireachtas Library and in the public domain. [24928/04]

The Prospectus report was published in December 2000 and was made available in January 2001 to those who commissioned it. Shortly thereafter, the report was given to a wide range of interested parties, in particular, organisations representing pig producers and pig processors. A copy of the report has been forwarded to the Deputy.

Disease Levies.

Michael Ring

Question:

88 Mr. Ring asked the Minister for Agriculture and Food her plans to decrease the animal disease levies as committed to during negotiations on Sustaining Progress. [24948/04]

The Sustaining Progress agreement, which was concluded in 2003, provided for the bovine disease levies to be reviewed from 1 January 2004 in light of possible efficiencies in the tuberculosis and brucellosis disease eradication schemes. Following a review of expenditure on these schemes in 2003 and in anticipation of a reduction in the cost of compensation arising from improved disease levels in 2004, the disease levies were reduced by 25% from 1 January 2004. The disease levies will be reviewed again in the context of the Estimates for 2005.

Rural Environment Protection Scheme.

Bernard J. Durkan

Question:

89 Mr. Durkan asked the Minister for Agriculture and Food , further to Question No. 95 of 30 September 2004, if she will review the recoupment of moneys awarded under the REP scheme, in view of the fact that the person complied with all required conditions laid down under REPS I when he entered the scheme but was unable to comply with REPS II due to commitments he had already entered into, of a contractual nature, and over which he had no control (details supplied); and if she will make a statement on the matter. [24975/04]

The person named began his REPS contract on 1 January 2000 and as a result was subject to the arrangements governing the transition between the first rural environment protection scheme and the second one. These required him to give a written undertaking to complete the measures specified in his REPS plan over a five year period and to integrate and adapt that plan for the new scheme when it came into operation or to give back any payments he had received.

The new REP scheme came into operation on 27 November 2000, but the person concerned never adapted and integrated his plan as he had undertaken to do. Consequently, my Department must recoup the REPS payments that he had received.

Tax Collection.

Dan Boyle

Question:

90 Mr. Boyle asked the Minister for Finance his views on the recent reduction in receipts from corporation tax. [24950/04]

Corporation tax receipts to end September were €185 million below target. Part of the reason for this may be that a number of companies over-paid their advance preliminary tax, particularly in the autumn of last year. This has resulted in much reduced residual preliminary tax payments in 2004 to date. It may also be the case that the improvement in the economy has yet to result in greater company profits and higher corporation tax receipts. I ask the Deputy to note that almost 40% of the expected yield from corporation tax in 2004 is profiled for collection in the last quarter of 2004. In November alone, 28% is collected. As such, it is too early to speculate about the extent to which corporation tax might recover from its current shortfall position by the year's end.

Budget Submissions.

Finian McGrath

Question:

91 Mr. F. McGrath asked the Minister for Finance if he will give consideration to the NAMHI budget submission 2005; and if persons with intellectual disabilities will receive the maximum support. [24873/04]

At this time of the year, I receive a large number of pre-budget submissions requesting funding for a wide range of activities. Each submission will be considered in the context of the forthcoming budget.

There is already a significant level of investment by Government in disability specific services through a number of Departments. Currently, some €2.5 billion, representing 7% of gross current public expenditure on services, is provided specifically for people with disabilities. This includes health sector services specifically for persons with an intellectual disability or autism, physical or sensory disabilities and mental illness; first and second level special needs education funded through the Department of Education and Science; the specialised training and employment support services provided by FÁS; the cost of various tax relief schemes and local authority spending to adapt accommodation specifically for people with disabilities.

The figures do not take account of the income support and other services provided through the Department of Social and Family Affairs or the fact that many people with a disability participate in, or benefit from, mainstream public service programmes and services. For example, speech and language therapy, physiotherapy and other similar key services for people with a disability are provided as part of the mainstream health services. Similarly, improving access to public transport services for persons with mobility and sensory impairments is an integral requirement of all Exchequer funded new investment in buses, rolling stock and station infrastructure.

The Deputy will be aware that the Disability Bill was recently published. Publication of the Bill was accompanied by an announcement of new funding arrangements for capital and current spending on disability support services. On the capital front, a multi-annual capital investment programme for disability-specific services will be developed within the overall system of five year multi-annual capital envelopes that was introduced in budget 2004. This was a major change in the treatment of capital spending and provided for a rolling investment programme and a structured and planned approach to capital spending. These envelopes will be reviewed and rolled forward in the forthcoming Estimates and budget process. Decisions on the investment programme for disability-specific services will be announced as part of that process.

The Government has decided on a fundamentally different approach to current funding for high priority disability support services. In contrast to the traditional year to year basis, a multi-annual funding package for current expenditure on these services will be agreed within the Estimates and budget process. This is the first time the Government has adopted this approach in the case of spending on services. This new approach shows the Government's commitment to funding for disability support services and overall to implementing the initiatives announced with the publication of the Disability Bill.

Tax Code.

Paul Kehoe

Question:

92 Mr. Kehoe asked the Minister for Finance if he will consider making home security systems VAT exempt in order to make them more affordable to all in times of rising crime; and if he will make a statement on the matter. [24880/04]

The purchase and monitoring of home security systems are subject to the standard VAT rate of 21%. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. While we can maintain the zero rating on those goods and services which were zero-rated before 1 January 1991, the purchase, installation and monitoring of such alarms do not fall within this category. Therefore, it is not possible to apply a zero VAT rate to these goods and services.

However, under the Value Added Tax (Refund of Tax) (No. 15) Order 1981, it is possible to obtain a VAT refund in respect of the purchase of a personal security alarm by or on behalf of a disabled or elderly person. A personal security alarm is considered a medical device for the purpose of this refund order. Applicants should contact the Revenue Commissioners, VAT Repayments (Unregistered Section), Kilrush Road, Ennis, County Clare.

Furthermore, under a scheme of community support for older people operated by the Department of Community, Rural and Gaeltacht Affairs, grant aid is available to fund the once-off cost of purchase and installation of small scale physical security equipment such as strengthening of doors and windows, window locks, door chains and security lighting and socially monitored alarm systems, such as pendant alarms, which are operated via telephone and worn around the neck or wrist. Annual monitoring fees or maintenance fees associated with socially monitored alarm systems are not provided for under the scheme.

The VAT refund available in respect of the purchase of a personal security alarm by or on behalf of a disabled or elderly person combined with the scheme of community support for older people outlined above are important measures which help to ensure that those most in need of security systems can avail of them.

Paul Kehoe

Question:

93 Mr. Kehoe asked the Minister for Finance if he will consider introducing tax incentives for home security systems; and if he will make a statement on the matter. [24881/04]

As the Deputy will be aware, section 478 of the Taxes Consolidation Act 1997 — formerly section 5 of Finance Act 1996 — introduced a tax relief in respect of the purchase and or installation of house alarms systems for persons aged 65 years and over who were living alone. The legislation provided that the tax relief would only be available for the period 23 January 1996 to 5 April 1998. The tax relief was allowed to lapse in part because of the small numbers of claims being submitted. While I have no plans at this time to reintroduce the relief for persons over 65 years or more generally, I will bear the Deputy's suggestion in mind.

House Prices.

Bernard J. Durkan

Question:

94 Mr. Durkan asked the Minister for Finance the extent to which house price inflation is affecting the competitiveness of the economy; the action he plans to address this issue; and if he will make a statement on the matter. [24892/04]

House prices have risen significantly over the last number of years. Between 1995 and 2003, new house prices rose at an annual average rate of just under 14%, the equivalent rate of increase for second-hand house prices was 16%. The increase in prices over this period reflects the substantial increase in housing demand. This, in turn, reflects very strong wage growth, a large increase in employment, net inward migration and an increase in the population in the household formation age cohort. To the extent that prices were driven by these demand side factors, house price developments do not have a significant impact on the competitiveness of the economy.

It is also the case that housing supply has risen sharply in recent years. This year, many commentators are forecasting housing output of around 80,000 units, the largest ever number of completions in a single year. If this proves to be the case, then over 300,000 additional housing units will have been added over the last five years, which in per capita terms is unprecedented. The sharp increase in supply can reasonably be expected to result in a more moderate rate of house price inflation in future.

Tax Code.

Michael Ring

Question:

95 Mr. Ring asked the Minister for Finance if he will consider the exemption of capital gains tax on the disposal of assets to the extent that the proceeds are invested in full into an approved retirement fund for retirement income in the farming sector. [24935/04]

Capital gains tax, or CGT, is a tax on a capital gain arising on the disposal of assets. A 20% rate of CGT applies on the gains arising on the disposal of assets. As the Deputy may be aware, the rate was halved from 40% to 20% in budget 1998. Reliefs and exemptions made sense when CGT rates were 40% and above. The current position is in accordance with the overall taxation policy of widening the tax base in order to keep direct tax rates low.

The Deputy mentions investment in an approved retirement fund. He may be referring to the pension product known as an ARF. This is a post-retirement product which is an alternative to an annuity as an income source in retirement. A pension product such as a retirement annuity contract may be transferred into an ARF on retirement in certain circumstances. Generous tax relief is already available for contributions to retirement annuities in the form of marginal income tax relief. To exempt the moneys involved from capital gains tax as well would be affording relief on the double which would be excessively generous.

Michael Ring

Question:

96 Mr. Ring asked the Minister for Finance if he will introduce a special environmental protection expenditure tax allowance to give farmers the option of deducting 100% of the net grant expenditure on environmental protection facilities against income with an option to claim a lesser deduction to the extent that the total cost of the investment may be written off over a three year period. [24936/04]

To encourage investment in environmental protection in the farming sector, a scheme of improved capital allowances in respect of expenditure incurred on buildings or structures necessary for the control of pollution was introduced for a three year period from 6 April 1997. This relief was extended for three years in the Finance Act 2000 and a further three years in the Finance Act 2004 until 31 December 2006.

The relief has been improved since its original introduction. The ceiling on the maximum amount which can be claimed in the first year was increased from €12,700 to €19,050 in the Finance Act 1998 and to €31,750 in the Finance Act 2000. A more flexible writing down arrangement was introduced in the Finance Act 2000 whereby the writing down period was reduced from eight to seven years. These writing down arrangements allow farmers, in respect of expenditure incurred on or after 6 April 2000, to elect to have allowances granted over the writing down period at 15% for the first six years and 10% in year seven. Alternatively, farmers can elect to claim the 50% year one allowance in whole or in part at any time over the seven year writing down period, subject to a cap of €31,750 on the amount which can be written down in any one year. The remaining expenditure is claimed as normal at 15% for the first six years and 10% in the final year of the writing down period. Farmers elect which of the two types of writing down arrangement they wish to avail of when they first make a claim for this relief.

I consider that this relief is already very generous in scope. However, as is customary, I can make no further comment on the intention or otherwise to make changes in taxation in the lead up to the annual budget and Finance Bill.

Michael Ring

Question:

97 Mr. Ring asked the Minister for Finance if he will introduce a significant increase in the flat VAT refund to non-VAT registered farmers from its current 4.4% level to over 5.3%. [24937/04]

The flat rate refund for unregistered farmers is examined every year in the context of the budget. It is not customary for me to comment on any possible changes to the existing rate which may arise in the context of the forthcoming budget.

The flat rate VAT refund is a simple administrative system designed to compensate farmers who are not registered for VAT for the VAT they incur as part of their farming activities. The calculation of the flat rate is governed by EU VAT law and is based on the relevant macroeconomic data for the farming sector for the previous three years. The macroeconomic information is drawn from statistics on agricultural production, agricultural inputs and the deductible VAT content of such inputs. The flat rate is arrived at by calculating the VAT payable by unregistered farmers on agricultural inputs as a percentage of the value of agricultural sales by these farmers.

Michael Ring

Question:

98 Mr. Ring asked the Minister for Finance if he will extend the PAYE tax credit to all taxpayers through increases in personal tax credits to benefit farmers and other self employed taxpayers. [24938/04]

The PAYE allowance, as it was then, was introduced in 1980 to improve the tax progression of PAYE taxpayers and to take account of the fact that the self employed generally then had the advantage of paying tax on a preceding year basis. The argument was also made at the time that the general scheme of allowances discriminated against employees and in favour of other taxpayers.

There have been changes since 1980 — the self employed now pay tax on a current year basis, for example. However, the PAYE allowance has become a tax credit. Moreover, given that there can be significant timing advantages in the payment of tax for the self employed, the employee credit is still perceived as necessary to ensure a balance in the system. It would be inappropriate to comment in the lead up to the annual budget and Finance Bill on tax measures which may or may not be made.

Michael Ring

Question:

99 Mr. Ring asked the Minister for Finance if he will extend the relief from stamp duty on the purchase of farm land by trained farmers to farmers below the age of 55. [24939/04]

The stamp duty code contains full stamp duty relief for transfers of land to young trained farmers where land is transferred to them by way of gift or sale, provided they have attained relevant educational qualifications. This exemption encourages the more productive use of agricultural land. The availability of the relief was extended in budget 2003 for a further three years to 31 December 2005. The Finance Act 2004 provided for an updated list of educational qualifications and contained changes which resulted in the raising of the standards of certain of those qualifications which must be attained in order to qualify for the relief.

The relief, which is considered generous, is intended to encourage the transfer of land to young farmers who have successfully undergone training. The young trained farmer must be under 35 years of age at the date of execution of the transfer to satisfy the conditions for the stamp duty relief. The relief specifically focuses on young farmers with relevant training, and the current age limit and qualification requirements in respect of this relief are considered very reasonable. Any extension would dilute the focus of the relief.

It is not the practice to comment in the lead up to the annual budget and Finance Bill on the intention or otherwise to make changes in taxation.

Michael Ring

Question:

100 Mr. Ring asked the Minister for Finance if he will consider exempting capital gains tax on the disposal of land by committed farmers where the proceeds of the disposal are utilised to consolidate holdings and are applied in the acquisition of other farm land to achieve this within a specified period. [24940/04]

Capital gains tax, CGT, is a tax on a capital gain arising on the disposal of assets. A 20% rate of CGT applies on the gains arising on the disposal of assets, including farm land.

It was announced in the 2003 budget that no roll-over relief would be allowed for any purpose on gains arising from disposals on or after 4 December 2002. This relief was introduced when CGT rates were much higher than current levels. In effect, it was a deferral of tax to be paid, where the proceeds of disposal were re-invested into replacement assets. The taxation of these gains would take place following the eventual disposal of the new assets without their replacement.

The abolition of this relief was in accordance with the overall taxation policy of widening the tax base in order to keep direct tax rates low. Such reliefs and allowances made sense when CGT rates were 40% and above. As the Deputy may be aware, the rate was halved from 40% to 20% in budget 1998. Taxing capital gains when they are realised is the most logical time to do so, and this change brought CGT into line with other areas.

It is not the practice to comment in the lead up to the annual budget and Finance Bill on the intention or otherwise to make changes in taxation.

Disabled Drivers.

Bernard J. Durkan

Question:

101 Mr. Durkan asked the Minister for Finance the progress with the interdepartmental review of the disabled drivers and disabled passengers tax concession 1994 regulations; and if he will make a statement on the matter. [24956/04]

An interdepartmental review group was established to examine the operation of the scheme and its report was published in early July 2004. It sets out in detail the genesis and development of the scheme, the current benefits, the Exchequer costs, the various requests to broaden the eligibility criteria and various recommendations for changes to the scheme.

Following on from the report's recommendations concerning the appeals process, amendments to the regulations governing the disabled drivers and disabled passengers tax concessions scheme were drafted to improve the operation of the medical appeals board. These were signed by the Minister for Finance on 23 July 2004. The amendments provide for changes to the existing regulations as follows: expanding the panel of medical practitioners serving on the medical board of appeal from three to five; amending the appeals process by introducing a six month waiting period between an appeal and a subsequent application and introducing the requirement for a second or subsequent application to be certified by a registered medical practitioner to the effect that there has been material disimprovement in the medical condition since the previous application.

The Government has agreed that the Minister for Finance will consider the report on an ongoing basis in the overall budgetary context having regard to the existing and prospective cost of the scheme.

Decentralisation Programme.

Bernard J. Durkan

Question:

102 Mr. Durkan asked the Minister for Finance if he will report on the progress to date on the plans for decentralisation as announced in budget 2004; the number of civil servants now available for relocation to designated areas; and if he will make a statement on the matter. [24957/04]

The two reports of the decentralisation implementation group dated 31 March 2004 and 30 July 2004 provide detailed accounts of the progress made in implementing the decentralisation programme announced last December. An analysis of the applications registered with the central applications facility by 7 September 2004 has also been published. I would also refer Deputies to the presentations made to the Oireachtas Joint Committee on Finance and the Public Service on 6 October 2004 by the chairman of the implementation group. I am very pleased with the progress which has already been made in driving forward the implementation of the programme.

Tax Yield.

Bernard J. Durkan

Question:

103 Mr. Durkan asked the Minister for Finance the sectors or Department most likely to benefit from the buoyancy of revenue returns in 2004; if these surpluses are likely to be diverted to the most sensitive areas; and if he will make a statement on the matter. [24958/04]

Tax revenue has performed better than expected in 2004 to date. Even so, there will still be a need to borrow €1.2 billion to fund public services. In the light of this, the Deputy's reference to surpluses being diverted is not relevant.

Fiscal Policy.

Bernard J. Durkan

Question:

104 Mr. Durkan asked the Minister for Finance his vision in respect of fiscal policy now and in the future; and if he will make a statement on the matter. [24959/04]

The Government's fiscal policy is set out in the programme for Government which states that it is committed to sustaining economic growth and maintaining full employment in the Irish economy. We see low inflation, responsible fiscal policies and effective investment policies as central to this.

Financial Services Regulation.

Bernard J. Durkan

Question:

105 Mr. Durkan asked the Minister for Finance if he has satisfied himself regarding the adequacy of the regulations appertaining to the banking and financial services sector; and if he will make a statement on the matter. [24962/04]

The Minister of Finance is responsible for the development of the legal framework governing financial regulation. Once the necessary legislative framework has been put in place, day to day responsibility for the supervision of credit institutions is a matter for the Irish Financial Services Regulatory Authority, IFSRA, and the Minister for Finance does not get involved in the day to day activities of the financial regulator. The legislative provisions which have been put in place provide a sound basis for financial regulation in Ireland. Moreover, this code of legislation is being adequately applied and enforced by IFSRA.

The Central Bank and Financial Services Authority of Ireland Acts 2003 and 2004 represent a radical restructuring of financial regulation in Ireland: for example, the establishment of a single structure to take in work previously done by four separate bodies, the greater emphasis on consumer concerns, the enhancement of the regulator's powers, including in administrative sanctions, enhanced provision for co-operation between the various authorities, the provision for establishment of a statutory financial services ombudsman scheme and of new consultative mechanisms for consumers and industry. All of these achievements will contribute to the better regulation of the sector.

It is my intention to learn from the experience of the operation of IFSRA and from various recent and expected reports, so as to keep our legislative framework efficient and up to date. I have recently initiated a public consultation process with a view to consolidating, simplifying and updating our financial services legislation. My ongoing aim is to ensure that our legislation continues to meet the Government's consumer protection and stability objectives in a way that minimises the regulatory burden on industry and otherwise complies with the Government's better regulation agenda, and promotes the development of a sector that is competitive both domestically and internationally and operates to high standards.

Departmental Staff.

Bernard J. Durkan

Question:

106 Mr. Durkan asked the Minister for Finance if and when a person (details supplied) in County Dublin will be offered a transfer; and if he will make a statement on the matter. [24963/04]

The applicant's human resources directorate is aware of his interest in obtaining a transfer and he will be among those considered for reassignment if a suitable vacancy arises.

The Department of Foreign Affairs is currently finalising the staffing of its new passport office in Balbriggan, County Dublin, and has invited applications from within the Civil Service to fill a small number of vacancies remaining there. That Department will shortly be in communication with those applicants who will initially be offered a transfer to Balbriggan. Those applicants who will not be offered a transfer at this time will also be contacted and informed of the outcome of their applications.

Garda Stations.

Bernard J. Durkan

Question:

107 Mr. Durkan asked the Minister for Finance the progress over the summer months of 2004 on the project to provide a new Garda station at Leixlip, County Kildare; the extent to which the issue has been advanced in that period with particular reference to the need to proceed without delay; when it is likely that the station will be built and commissioned; and if he will make a statement on the matter. [24967/04]

A revised brief was received from the Department of Justice, Equality and Law Reform which has increased the scale of the Garda station. In consequence it has been necessary to open negotiations with Kildare County Council with a view to maximising the development potential of the proposed station site. It is hoped to complete these negotiations as soon as possible to finalise a revised sketch scheme for the new station which will be issued to the Department for its approval.

Price Inflation.

Bernard J. Durkan

Question:

108 Mr. Durkan asked the Minister for Finance if, with a view to obtaining a more comprehensive evaluation of inflation, he will consider including house and other prices in the CPI; and if he will make a statement on the matter. [24968/04]

The director general of the Central Statistics Office, CSO, has sole responsibility for and is independent in deciding the statistical methodology and professional standards to be used in compiling the consumer price index, CPI. The CPI is designed to measure the change in the average level of the prices paid by consumers for goods and services. It measures in index form the monthly changes in the cost of purchasing a representative basket of consumer goods and services.

The purchase of a house is an investment in a capital asset, purchased over a long period of time, that usually appreciates in value. It does not form part of consumption and so house prices are excluded from the index. The CPI does, however, include the current costs of housing, such as mortgage interest costs. These costs reflect not only changes in interest rates but also the increasing size of the average mortgage. Measurement of the latter takes into account the trend in house prices and as a result these price trends are taken into account, indirectly, in the index. Rental costs are also included in the CPI.

The latest CPI release shows the annual inflation rate in August was 2.5%. Inflation has averaged 1.9% in the first eight months of this year, compared to an average of 4.2% over the same period last year. The moderation in inflation is a very welcome development. In the Economic Review and Outlook, which was published in August, my Department forecast an annual average rate of CPI inflation of 2.2% for 2004 as a whole, down from 3.5% last year.

Flood Relief.

Bernard J. Durkan

Question:

109 Mr. Durkan asked the Minister for Finance if he has received submissions from or made submissions to Kildare County Council in regard to the permanent alleviation of flooding at the Mill Lane, Leixlip, County Kildare; and if he will make a statement on the matter. [24969/04]

The Office of Public Works met with officials from Kildare County Council earlier this year to discuss flooding problems at a number of locations. The county council confirmed that it had commissioned a report on flooding at Leixlip and agreed to forward a copy of the report to the OPW when available.

Flooding problems in the Mill Lane area of Leixlip are a matter for the local authority in the first instance and the OPW is happy to assist with technical advice and guidance. It should also be noted that no flood relief scheme is planned for this location.

Economic Competitiveness.

Bernard J. Durkan

Question:

110 Mr. Durkan asked the Minister for Finance the most important steps that he can take in his Department to improve the competitiveness of the economy; and if he will make a statement on the matter. [24970/04]

Given the importance of trade and investment to the continued development of the Irish economy, regaining and improving the competitiveness of the economy is a key priority for the Government and also for social partnership. Keeping a downward pressure on costs is essential. The consensus approach to wage determination has a crucial role in improving competitiveness, by delivering moderate wage increases. In this context, wage increases must be limited to those negotiated under Sustaining Progress. My Department participates fully in the negotiations of these agreements. Officials from my Department are also participating in the anti-inflation initiative set up as part of Sustaining Progress with a view to examining ways of reducing inflation.

It is also important to maintain spending growth in line with revenue growth, thus keeping the burden of taxation low in order to maximise our economic growth potential. Finally, we can maintain capital expenditure at the current high levels relative to GNP in order to reduce the existing infrastructural deficit.

Bernard J. Durkan

Question:

111 Mr. Durkan asked the Minister for Finance the merits and demerits of a high wage economy; the extent to which this will be reflected in the future; and if he will make a statement on the matter. [24971/04]

Wages in Ireland have risen significantly over the last number of years as we have successfully repositioned large parts of the economy in more knowledge intensive, higher value added employment. As a result, incomes in Ireland have converged to, and subsequently exceeded, the EU average.

One of the potential downsides of this is the fact that Ireland has become a high cost base, particularly for some lower skilled sectors. As a result, there have been job losses in some of these sectors. While this may be considered as part of an ongoing process of moving up the value added chain, it nonetheless has adverse implications for those whose skills have become relatively less important over time. This highlights the importance of investment in training and education. Moreover, for those sectors which have relatively limited scope for productivity growth, restoration of cost competitiveness is a crucial concern.

The challenge is to maintain and build on our performance over the last decade. We will need to be in a position to adapt and to develop our strengths, as highlighted in the recent report of the enterprise strategy group, if we are to succeed in the knowledge economy.

Tax Code.

Bernard J. Durkan

Question:

112 Mr. Durkan asked the Minister for Finance if the correct amount of income tax is being deducted in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [24972/04]

I am advised by the Revenue Commissioners that amended tax credit certificates will issue to the taxpayer and his spouse in the coming days and that all income tax deducted to date in 2004 will be refunded to them.

Bernard J. Durkan

Question:

113 Mr. Durkan asked the Minister for Finance the extent of capital gains or other tax liability in the event of disposal of all or part of an inheritance from a parent in view of the fact that the beneficiary is the registered owner for more than ten years; and if he will make a statement on the matter. [24973/04]

I am advised by the Revenue Commissioners that chargeable gains arising on the disposal by the beneficiary of all or part of an inheritance from a parent will be liable to capital gains tax, notwithstanding that the beneficiary has been the registered owner for more than ten years.

The chargeable gain is the difference between the net sale proceeds, after deducting the incidental costs of sale, and the allowable expenditure, that is, the aggregate of the market value of the asset on the date the parent died and the cost of any enhancement expenditure incurred by the beneficiary, after adjusting both for inflation up to 31 December 2002. The first €1,270 of an individual's annual gains are exempt from capital gains tax. The excess is chargeable at 20%.

The liability will be relieved, wholly or partially, where the beneficiary is entitled to relief, for example, on the disposal of his or her main residence or certain business assets. This relief is subject to conditions. On the information given, it appears that the beneficiary is not liable to taxes other than capital gains tax on the disposal in question.

Disabled Drivers.

Bernard J. Durkan

Question:

114 Mr. Durkan asked the Minister for Finance, further to Parliamentary Question No. 308 of 29 September 2004, the respect in which the application made under the disabled driver and disabled passenger tax concessions scheme did not meet requirements; and the criteria now deemed to be required in order to qualify. [24979/04]

Under the Disabled Drivers and the Disabled Passengers (Tax Concessions) Regulations 1994, before a vehicle can qualify for tax relief, adaptations amounting to at least 10% of the tax free cost of a vehicle must be carried out.

I am advised by the Revenue Commissioners that this requirement has been communicated to the named person on a number of occasions and that none of the claims received was supported by evidence that the necessary adaptations were carried out. Unless adaptations, as required by the regulations, are carried out, the named person cannot qualify under the scheme. If the named person wishes to clarify the minimum cost of adaptations required to qualify, he should ring Seosaimhín Ní Bhriain, Border Midlands West Region, Central Repayments Office, Office of the Revenue Commissioners, Coolshannagh, Monaghan, at telephone number 047-38011.

School Transport.

Paul Kehoe

Question:

115 Mr. Kehoe asked the Minister for Education and Science the reason a decision was taken to provide only one bus to transport the pupils of a school (details supplied) in County Carlow; the person responsible for the pupils when they are waiting for the bus after school hours; and if she will make a statement on the matter. [24862/04]

My Department has requested a report from Bus Éireann on this matter. The case will be considered on receipt of the report.

Higher Education Grants.

Tom Hayes

Question:

116 Mr. Hayes asked the Minister for Education and Science if a parent (details supplied) in County Tipperary is entitled to a top-up grant for their child, even though the parent is receiving a small maintenance payment. [24863/04]

The report of the action group on access to third level education makes detailed recommendations concerning the introduction of special rates of maintenance grants for disadvantaged students, usually referred to as top-up grants. The target group of those most in need has been defined in terms of the dependants of people receiving long-term welfare payments, where the necessary conditions are fulfilled.

The special rates of grant are also available to mature students who meet the prescribed conditions. To qualify for the top-up grant all candidates must satisfy the following conditions: qualify for the ordinary maintenance grant in respect of the academic year; total reckonable income limit in the tax year to 31 December 2003 must not exceed €14,693, net of standard exclusions, as set out in the 2004 maintenance grants schemes and net of CDA payments, where applicable; as at 31 December 2003, the reckonable income of parent(s)/guardian(s), the candidate himself/herself, or the income of the spouse/partner, as the case may be, must include one of the eligible social welfare payments prescribed under the scheme.

When a student submits an application for grant assistance the application will automatically be assessed for the special rate of grant where the income includes one of the eligible social welfare payments prescribed under the scheme. Decisions on applications are taken by the awarding authority based on the conditions and terms issued by my Department. The awarding authorities do not refer individual applications to my Department except in exceptional cases where, for example, advice or instruction regarding a particular condition is desired. It appears that no such advice or instruction has, to date, been sought in the case of the student referred to by the Deputy.

If an individual applicant considers that s/he has been unjustly refused the special rate of maintenance grant, s/he may appeal to the relevant local authority or VEC. Where an individual applicant has had an appeal turned down, in writing, by the relevant local authority or VEC and remains of the view that the body has not interpreted the conditions correctly in his/her case, a letter outlining the position may be sent to my Department.

No appeal has been received in the student support unit of my Department from the student referred to by the Deputy. Alternatively, as already indicated, the local authority or VEC may, itself, in exceptional circumstances, seek clarification on issues from my Department. It is not open to me or to my Department to depart from the terms of the schemes in individual cases.

Special Educational Needs.

Beverley Flynn

Question:

117 Ms Cooper-Flynn asked the Minister for Education and Science the reason a person (details supplied) who was in receipt of 2.5 hours resource teaching up June 2004 has had their hours reduced despite the fact that the educational psychologist recommended that they receive a minimum of four hours resource teaching per week. [24874/04]

My officials will investigate the matter referred to by the Deputy and contact will be made with the school as soon as this process has been completed.

David Stanton

Question:

118 Mr. Stanton asked the Minister for Education and Science further to circular SP ED 09/04, the date on which it was issued to schools; the number of applications for SER support for persons in the low incident categories from the commencement of the 2004-05 school year which were to be submitted to the special education section by 30 June 2004; the number of these applications that were accompanied by the relevant professional reports as per appendix 2 of the circular; the further number of these applications which have been allocated resources, refused resources and are pending decision respectively; and if she will make a statement on the matter. [24875/04]

The circular to which the Deputy refers issued on 22 June 2004 and is available on my Department's website, www.education.gov.ie.

There were 2,865 special educational resource, SER, applications submitted to my Department for pupils in the low incidence disability categories from the commencement of the 2004-05 school year up to 30 June 2004. Of these cases, applications in respect of 1,551 pupils have been approved for SER support. This includes applications for pupils commencing school in September 2004. It is considered that all of the approved applications were accompanied by the relevant professional report(s). The remaining 1,314 applications received have been unsuccessful, are subject to appeal, have not yet been processed or are incomplete applications. The processing of the applications is ongoing.

The applications not yet processed includes applications for special needs assistant support. The Deputy may be aware that my Department is currently considering the levels and deployment of SNA support in mainstream national schools generally. A decision on these applications will be conveyed to schools as soon as this process has been completed.

School Transport.

Richard Bruton

Question:

119 Mr. R. Bruton asked the Minister for Education and Science the amount spent on second level school transport for the most recent year for which statistics are available and for each of the five years prior to the most recent year for which statistics are available; the corresponding numbers carried at second level on school transport for each of these years; and if she will make a statement on the matter. [24876/04]

Richard Bruton

Question:

120 Mr. R. Bruton asked the Minister for Education and Science the amount spent on primary school transport for the most recent year for which statistics are available and for each of the five years prior to the most recent year for which statistics are available; the corresponding numbers carried at primary level on school transport for each of these years; and if she will make a statement on the matter. [24877/04]

I propose to take Questions Nos. 119 and 120 together.

The expenditure provided are global figures for both primary and post-primary school transport including grants paid under the various grant schemes. The cost of school transport for each of the past six years is as follows: 1998 —€51.2 million; 1999 —€57.9 million; 2000 —€65.0 million; 2001 —€77.0 million; 2002 —€95.9 million; 2003 —€101.7 million.

The overall number of pupils carried on services operated by Bus Éireann during the same period is estimated as follows: 1998 — 154,000; 1999 — 145,000; 2000 — 139,000; 2001 — 140,000; 2002 — 136,000; 2003 — 138,000. The Deputy will appreciate that the numbers carried may vary from month to month. The number of post-primary and primary pupils carried is estimated at 60% and 40% respectively of the overall total.

Schools Building Projects.

Finian McGrath

Question:

121 Mr. F. McGrath asked the Minister for Education and Science the position regarding the building programme for a school (details supplied); and if she will make a statement on the matter. [24878/04]

My Department is currently investigating a number of options to cater for the long-term accommodation needs of the school referred to by the Deputy. Among the options under consideration is the possible purchase of a site. The Office of Public Works, which acts on behalf of my Department in site acquisition matters generally, is investigating this particular option.

School planning section is also looking at the overall future provision of primary education in the area in which the school is located. In this regard, it is engaged in discussions with the primary education providers concerned. The purpose of the examination is to determine the likely demand for primary school places in the medium to long term and how existing provision can be maximised to cater for this demand.

No decisions will be taken regarding capital investment for the school in question pending the conclusion of this broader examination of the area.

Special Educational Needs.

Jim O'Keeffe

Question:

122 Mr. J. O’Keeffe asked the Minister for Education and Science if her attention has been drawn to the urgent need for the appointment of a special needs care assistant on a full-time basis and for adequate resource hours for a person (details supplied) in County Cork; and if she will immediately approve same. [24879/04]

Where a pupil with special educational needs enrols in a post primary school, it is open to the school to apply to my Department for additional teaching and-or special needs assistant support for the pupil.

My Department allocates additional teaching support and special needs assistant support to second level schools and vocational educational committees to cater for pupils with special educational needs. Each application is considered on the basis of the assessed needs of the pupils involved and the nature and level of support provided is determined on the advice of the psychological service.

The school concerned has been allocated 39.5 hours per week teaching support and 10.0 hours per week special needs assistant support for the 2004-2005 school year to cater for the special educational needs of a number of pupils, including the pupil referred to by the Deputy. The level of resources allocated by my Department was determined after detailed consideration of the school's application, the supporting documentation provided, including the recommendations made by the National Educational Psychological Service, and having regard to the overall level of resources already available to the school.

If the school authority is of the view that the level of needs within the school is such as to be incapable of being addressed from within its current allocation, my Department will be prepared to consider these concerns. Such consideration will require a clear demonstration of the inadequacy of the allocation by reference to the current utilisation of the school's available resources.

Schools Building Projects.

Cecilia Keaveney

Question:

123 Cecilia Keaveney asked the Minister for Education and Science the position with a school building project (details supplied) in County Donegal; and if she will make a statement on the matter. [24894/04]

The building project for the school referred to by the Deputy is at an early stage of architectural planning. It has a band two rating and is at stage three, detailed plans-costs. This project was not authorised to proceed to tender and construction this year. My Department's technical staff are currently examining the stage three documentation and the school authorities will be kept advised of developments.

My Department's officials are currently reviewing all projects that were not authorised to proceed to construction as part of the 2004 school building programme, including the project in question, with a view to including them as part of a multi-annual school building programme from 2005. I expect to make further announcements in this regard before the end of the year.

Payment of Arrears.

Paul McGrath

Question:

124 Mr. P. McGrath asked the Minister for Education and Science if, in view of a recent decision by a labour relations commissioner concerning the rate of pay for special needs assistants in junior classes in primary schools, a person (details supplied) in County Westmeath is entitled to back payments from her Department; the amount they are entitled to for each of the relevant years; and when these payments will be made. [24895/04]

My Department has received an application from the person referred to for the payment of arrears in respect of the period that she worked with children in infant classes. The person's application is currently being processed and payment will be made in the payroll issue of 4 November.

Schools Building Projects.

Olwyn Enright

Question:

125 Ms Enright asked the Minister for Education and Science when she expects the extension to a school (details supplied) in County Cork to commence; the reason work on the extension has not proceeded since it was sanctioned in 2000; if her attention has been drawn to the fact that this four teacher school has had only three classrooms for the past 17 years and that the general practitioner room is now used as a classroom; and if she will make a statement on the matter. [24896/04]

The refurbishment-extension project for the school referred to by the Deputy is at an early stage of architectural planning. It has a band two rating. This project was not authorised to proceed to tender and construction this year. My Department's technical staff are currently examining the stage two-three documentation, detailed plans-costs. The school authorities will be kept advised of developments.

My Department's officials are currently reviewing all projects that were not authorised to proceed to construction as part of the 2004 school building programme, including the project in question, with a view to including them as part of a multi-annual school building programme from 2005. I expect to make further announcements in this regard before the end of the year.

Special Educational Needs.

Olwyn Enright

Question:

126 Ms Enright asked the Minister for Education and Science when an education plan will by carried out on a person (details supplied) in County Offaly; and if she will make a statement on the matter. [24897/04]

The person named currently attends a class for children with autistic spectrum disorders. The practice in this school is to provide individual educational plans for all the children in the class. An individual educational plan has already been prepared for this person. The development of individual educational plans is the responsibility of the school with advice from external professionals, as needed. In this case, a senior psychologist from the National Educational Psychological Service is available to the school on request for additional advice and support on developing the plan.

The National Educational Psychological Service intends to continue to offer support to this class and a review of the effectiveness of the individual educationaI plan will be carried out in consultation with the person's parents and teachers.

Olwyn Enright

Question:

127 Ms Enright asked the Minister for Education and Science if further resource hours will be sanctioned for a school (details supplied) in County Dublin in view of the fact that the allocation does not take into account the number of children in the school and their specific needs; and if she will make a statement on the matter. [24898/04]

Olwyn Enright

Question:

128 Ms Enright asked the Minister for Education and Science the reason the letters of a principal of a school (details supplied) in County Dublin sent on 27 May, 8, 21, 29 June and 10 September 2004, on the issue of special education have not been replied to; and if she will make a statement on the matter. [24899/04]

I propose to take Questions Nos. 127 and 128 together.

I can confirm that following receipt of correspondence from the school referred to by the Deputy a Department official telephoned the school principal on 23 September to discuss the matters raised in the correspondence. The official explained the current position relating to the school's application for special needs supports. It was explained that while the new weighted system has recently been developed, it is not yet fully implemented. It is a genuine effort to improve the special education resource allocation process. My Department will continue to examine how the new system will affect schools, including schools that have been established in recent years and have a limited level of special education resources.

An additional 350 teacher posts are being provided to facilitate the introduction of the new system. This system will involve a general weighted allocation for all primary schools to cater for pupils with higher incidence special educational needs, that is, those with borderline mild and mild general learning disability and specific learning disability, as well as those with learning support needs. In addition, it will continue to allow for individual allocations in respect of pupils with lower incidence of special educational needs.

Olwyn Enright

Question:

129 Ms Enright asked the Minister for Education and Science if she will provide the information on which the decision to provide higher learning support to boys’ and mixed schools than to girls’ schools was based; and if she will make a statement on the matter. [24900/04]

The revised system for allocating teaching resources to mainstream national schools for special needs comprises two elements. The first element is a general weighted allocation for pupils requiring learning support and pupils with higher incidence disabilities, that is, those with dyslexia and those with mild and borderline mild general learning disability. The second element enables schools to apply for specific support for those pupils with lower incidence disabilities and those applications are considered on their individual merits. In the case of specific pupils with lower-incidence disabilities, no differentiation is made on the basis of gender.

The general weighted allocation method discriminates positively in two important respects. First, it discriminates on a gender basis as a considerable body of evidence shows that boys are more likely than girls to have learning delays and special educational needs. Data available to the Department from its census of special educational needs in primary schools support this position as do successive literacy studies. Second, it recognises the connection between learning delay and special educational need on the one hand and socio-economic disadvantage on the other.

These considerations are reflected in the following weighted allocations. In the most disadvantaged schools, as per the urban dimension of the Giving Children an Even Break scheme, a teacher of pupils with special educational needs will be allocated for every 80 pupils to cater for the subset of pupils with higher incidence special needs; in all boys schools, the ratio will be one teacher for every 140 pupils; in mixed schools or all girl schools with an enrolment of greater than 30% boys, one for every 150 pupils; and in all girl schools, including schools with mixed junior classes but with 30% or less boys overall, one for every 200 pupils. Any all girl school which comes within the most disadvantaged category indicated above will attract the most favourable allocation.

The revised system has been developed in consultation with representative interests. It is a genuine effort to improve the special education resource allocation process. The differentiation under the general weighted allocation reflects the experience of needs both within this country and internationally. I will continue to work for improvements in the provision of education services for children with special educational needs and in this context will monitor the implementation of the new system to ensure its efficiency and effectiveness.

Schools Building Projects.

Olwyn Enright

Question:

130 Ms Enright asked the Minister for Education and Science the number of primary schools awaiting the assignment of the band rating to establish priority; and if she will make a statement on the matter. [24901/04]

Olwyn Enright

Question:

131 Ms Enright asked the Minister for Education and Science the number of post-primary schools awaiting the assignment of the band rating to establish priority; and if she will make a statement on the matter. [24902/04]

I propose to take Questions Nos. 130 and 131 together.

The school planning section of my Department is currently nearing completion of an examination of all primary and post-primary building projects on hand in line with the project prioritisation criteria that were recently revised in consultation with the education partners.

School Staffing.

Denis Naughten

Question:

132 Mr. Naughten asked the Minister for Education and Science the number of vacancies for deaf teachers within the regional service; the regions involved; the plans she has to fill these posts; when each position became vacant; the measures taken to date to fill each post; and if she will make a statement on the matter. [24912/04]

My Department is assessing the role of the visiting teacher service in the context of the level and range of teacher supports now being provided for children with special educational needs. I expect that the review will be completed within the current school term.

There are four vacancies in the visiting teacher service for hearing impaired or deaf pupils. The regions in question are Cavan, Monaghan and Leitrim; Galway; Wicklow, Carlow and Waterford; and north-east Cork. The position in the Cavan, Monaghan and Leitrim area is vacant since 31 August 2003 and the remaining three are vacant since 31 August 2004. A decision on the filling of vacancies, to which the Deputy refers, will be based on the outcome of the review.

Denis Naughten

Question:

133 Mr. Naughten asked the Minister for Education and Science, further to Parliamentary Questions Nos. 531 and 532 of 29 September 2004 and correspondence (details supplied), if her Department will now accept that circumstances in regard to school staffing have now changed and the school is no longer over quota; and if she will make a statement on the matter. [24922/04]

Post-primary schools may apply to my Department for additional teaching hours to help cater for the needs of Traveller and non-national pupils enrolled. In situations where schools have over quota posts, my Department routinely requires that these posts be utilised to meet new and emerging needs within such schools, including the needs of Traveller and non-national pupils, where appropriate.

Following consideration of the application from the school concerned, my Department decided that the school should cater for the needs of the Traveller and non-national pupils enrolled from within its existing resources, which include 2.5 wholetime equivalent surplus posts. This case was referred to the independent appeals committee which upheld the original decision. This committee operates independently of my Department and its decisions are final.

In the event that there is any subsequent change in the staffing of the school which alters its quota position, my Department will be prepared to review the case. To date, no such change has been notified to my Department.

Special Educational Needs.

Jack Wall

Question:

134 Mr. Wall asked the Minister for Education and Science when an appointment of a teacher and special needs assistant will be made at a school (details supplied); and if she will make a statement on the matter. [24924/04]

Jack Wall

Question:

136 Mr. Wall asked the Minister for Education and Science the way in which a school (details supplied) in County Kildare can provide special resources for a number of children under the new system of qualification for special resources when it has not been allocated a teacher; and if she will make a statement on the matter. [24926/04]

I propose to take Questions Nos. 134 and 136 together.

The school referred to by the Deputy was advised of its teacher allocation under the new weighted system on 24 June 2004. The school has the services of one full-time shared resource teacher post and one full-time shared learning support teacher post.

An additional 350 teacher posts are being provided to facilitate the introduction of the new system. This system will involve a general weighted allocation for all primary schools to cater for pupils with higher incidence special educational needs, SEN, that is, those with borderline mild and mild general learning disability and specific learning disability, as well as those with learning support needs. In addition, it will continue to allow for individual allocations in respect of pupils with lower incidence SEN.

The weighted allocation will be made as follows. In the most disadvantaged schools, as per the urban dimension of the Giving Children an Even Break scheme, a teacher of pupils with special educational needs will be allocated for every 80 pupils to cater for the subset of pupils with higher incidence SEN; in all boy schools, the ratio will be one teacher for every 140 pupils; in mixed schools or all girl schools with an enrolment of greater than 30% boys, one for every 150 pupils; and in all girl schools, including schools with mixed junior classes but with 30% or less boys overall, one for every 200 pupils.

The weighted allocation will enable teaching support to be provided to pupils with higher incidence SEN and learning support needs. This will obviate the need for schools to submit individual applications for pupils in those categories. Schools may continue to apply for specific teacher allocations in respect of pupils with lower incidence SEN.

My Department now proposes to devise school clusters in respect of allocations to be made under the weighted model. Sanction for the filling of posts will be considered in the context of these clusters and the weighted arrangements. In order to facilitate the full introduction of the weighted model from the school year 2005-06, my Department has agreed not to redeploy surplus teachers from full-time posts via the panel redeployment process during the current school year. Schools have been informed, also, that they may retain excess part-time teaching hours to the extent that such hours are required for children with lower incidence SEN.

With regard to special needs assistant, SNA, support, the school referred to by the Deputy currently has the services of a full-time special needs assistant post. I can confirm that my Department received additional applications for SNA support. At present, my Department is considering the levels and deployment of SNA support in mainstream national schools generally and the application is being considered in this context. A decision on the applications will be conveyed to the school as soon as this process has been completed.

Jack Wall

Question:

135 Mr. Wall asked the Minister for Education and Science the number of special resource teachers appointed for the proposed 350 placements; if all of the positions are not filled, the timetable for the completion of the appointments; and if she will make a statement on the matter. [24925/04]

My Department has allocated the equivalent of 345 additional resource teaching posts to the primary system. The allocation process is ongoing. Responsibility for the recruitment and appointment of resource teachers is a matter for individual school boards of management. The overall position will be determined as a result of panel redeployment arrangements which will take effect from the 2005-06 school year.

Question No. 136 answered with QuestionNo. 134.

Educational Disadvantage.

Jim O'Keeffe

Question:

137 Mr. J. O’Keeffe asked the Minister for Education and Science the position regarding the future of the GCEB co-ordinator for four schools in west Cork; if her attention has been drawn to the fact that the scheme has had a very positive influence on the school community over the past eight years; and if the scheme will be continued in the area covered by Togher, Kealkil and Coomhola national schools and ScoilMocomóg [24930/04]

My Department is currently finalising a review of educational disadvantage schemes with a view to building on what has been achieved to date, adopting a more systematic, targeted and integrated approach and strengthening the capacity of the system to meet the educational needs of disadvantaged children and young people. The future position of the scheme referred to by the Deputy will be clarified in the context of this review.

Special Educational Needs.

Joan Burton

Question:

138 Ms Burton asked the Minister for Education and Science if her attention has been drawn to the difficulties of the board of management of a school (details supplied) in Dublin 15 and its request to her Department to acknowledge the unique situation that exists in the school regarding international pupils currently on the roll; the need to allocate two additional resource teachers to the school and restore the four special needs assistance posts for international students revoked in 2003 and 2004; if she has received a copy of the report from the board of management of the school; and if she will respond to the special need which the school has, as disclosed in this report. [24953/04]

My Department received a copy of the report referred to by the Deputy and is aware of the situation with regard to the level of international pupils in attendance at the school.

The allocation of resource teaching support and special needs assistant support to primary schools is based on the assessed needs of individual pupils with special educational needs. Therefore, any applications for such support submitted by the school should be in the context of the criteria in my Department's circulars relating to special needs provision. In this context, my Department has no plans to sanction additional resource teaching provision or special needs assistant support to meet the needs of the international pupil cohort in the school.

The school currently has an allocation of three language support teachers and this is the maximum number of such teachers that is sanctioned to any school for this purpose. Where a school meets the criteria for allocation of resources under any scheme, it will be allocated the resources as appropriate. There are no exceptional measures open to my Department under which an additional allocation can be made to the school. In making resources available, my Department has to devise processes which treat schools equitably.

Notwithstanding the above, arrangements will be made to have the case made by the school examined in more depth in the context of additional resources becoming available. Any expansion of existing schemes can only be done on a phased basis having regard to available resources and subject to spending priorities within the education sector.

Schools Refurbishment.

Denis Naughten

Question:

139 Mr. Naughten asked the Minister for Education and Science the status of the application which is with her post-primary building unit for a school (details supplied) in County Roscommon; if she will approve funding for this project; and if she will make a statement on the matter. [24954/04]

The extension project for the school referred to by the Deputy is at an early stage of architectural planning, namely, stage 1, site suitability and site analysis. It has a band 2 rating. My Department's officials are currently reviewing all projects that were not authorised to proceed to construction as part of the 2004 school building programme, including the project in question, with a view to including them as part of a multi-annual school building programme from 2005. I expect to make further announcements in this regard before the end of the year.

Higher Education Grants.

Bernard J. Durkan

Question:

140 Mr. Durkan asked the Minister for Education and Science if a higher education grant is available to a person (details supplied) in County Kildare; and if she will make a statement on the matter. [24977/04]

The decision on eligibility for third level grants is a matter for the relevant local authority or VEC. These bodies do not refer individual applications to my Department except in exceptional cases where, for example, advice or instruction regarding a particular clause in the relevant scheme is desired. It appears that no such advice or instruction has, to date, been sought in the case of the student referred to by the Deputy. If an individual applicant considers that he or she has been unjustly refused a maintenance grant, or that the rate of grant awarded is not the correct one, that applicant may appeal to the relevant local authority or VEC.

Where an individual applicant has had an appeal turned down, in writing, by the relevant local authority or VEC, and remains of the view that the body has not interpreted the schemes correctly in his or her case, a letter outlining the position may be sent to my Department. Alternatively, as already indicated, the local authority or VEC may itself, in exceptional circumstances, seek clarification on issues from my Department.

Marine Safety.

Martin Ferris

Question:

141 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources if he will make a statement on the decision by an inspector in his Department to delay the embarkation of a ship carrying a cargo of bulls from Waterford for a company (details supplied). [24872/04]

Under Irish and international law all cargo vessels trading into and out of Irish ports are required to carry the appropriate certification to demonstrate compliance with International Maritime Organisation and International Labour Organisation requirements. The surveying staff attached to the maritime safety directorate of my Department carry out regular inspections of all vessels, including unannounced checks, to ensure compliance with the relevant conventions and regulations. Where a vessel is found to be non-compliant it is detained until the matter is rectified.

I am advised that this cargo vessel, a foreign vessel registered in the Lebanon, was found to be deficient during a recent port State control inspection. Once the deficiencies were rectified the ship was re-inspected by the same surveyor and was subsequently permitted to proceed on its voyage. I believe that the monitoring of vessels by regular inspections is proving to be an effective measure in encouraging compliance and implementation of the international safety standards.

Broadcasting Legislation.

Jimmy Deenihan

Question:

142 Mr. Deenihan asked the Minister for Communications, Marine and Natural Resources the total sum to date of the BCI innovation fund established under the Broadcasting (Funding) Act 2003; the details of moneys spent to date; and if he will make a statement on the matter. [24889/04]

Jimmy Deenihan

Question:

143 Mr. Deenihan asked the Minister for Communications, Marine and Natural Resources the number of staff recruited to date to administer the BCI innovation fund; the number that will administer the fund when the schemes become operable; and if he will make a statement on the matter. [24890/04]

I propose to take Questions Nos. 142 and 143 together.

The Broadcasting (Funding) Act 2003 provided for the establishment of a fund to support certain television and radio productions and projects out of an amount of 5% of net receipts of television licence fees and in accordance with a scheme to be administered by the Broadcasting Commission of Ireland. The Act provided that the 5% of the net proceeds from television licence fees would be paid into the fund with effect from 1 January 2003. To date €14.3 million has been paid into the fund.

The BCI has drawn up a draft scheme and recently completed a public consultation on that draft scheme. In accordance with section 2(1) of the Broadcasting (Funding) Act 2003, the BCI must submit the finalised scheme to me for approval, following which I will lay the scheme before the Oireachtas. I expect to receive a proposed scheme from the BCI in the next few weeks. Any scheme is likely to require State aid approval from the European Union. The BCI has submitted a proposal to my Department on how the scheme should be administered, including a proposed staffing structure. My Department at present is examining this proposal.

Marine Safety.

David Stanton

Question:

144 Mr. Stanton asked the Minister for Communications, Marine and Natural Resources if an assessment has been carried out on the Coast Guard station in Ballycotton; if so the results of any such assessment; if his attention has been drawn to the need to build a new Coast Guard station in a new location in Ballycotton; his plans in this regard; and if he will make a statement on the matter. [24923/04]

The Irish Coast Guard of my Department operates a station house building programme to upgrade its 54 coastal unit stations around the coast. The Office of Public Works is the project manager for the Coast Guard.

To date, nine stations have been built or rebuilt and two further stations have been extended. The programme is delivering one to two new stations per year and it is kept under regular review. The project team has looked at several prospective sites for a new station at Ballycotton and this station remains part of the programme.

Harbours and Piers.

Jim O'Keeffe

Question:

145 Mr. J. O’Keeffe asked the Minister for Communications, Marine and Natural Resources his views on whether the condition of the existing pier at Dinish Island, Castletownbere, is a cause for concern, particularly at the point where ice and other supplies are loaded; the steps that have been taken since the project for the improvement and extension of the pier, dredging and a new auction hall was announced over four years ago; and when this project is now likely to get under way. [24929/04]

Consultants on behalf of my Department carried out a limited structural assessment of the existing pier at Dinish Island, namely, where the ice plant and so forth are located. The consultants reported on this on 24 September 2004. This report is being examined currently by my Department.

Invitations to tender for the development works comprising dredging, quay construction and the building of an auction hall have been prepared as a single contract. However, invitations in respect of the dredging and disposal works were prepared as a nominated sub-contract to allow earlier mobilisation of the dredging contractor.

The invitations to tender for the dredging and disposal works were issued in early June 2004. During the tender stage a number of contractors requested an extension of time for return of tenders. The dredging tenders were returned on 10 September 2004. Tender assessment is ongoing. It is expected that a letter of intent will be awarded to the successful dredging contractor later this month. This will allow the contractor to commence work on preliminaries, put in place the statutory permits appropriate to its proposed methodology and arrange mobilisation in advance of award of the main contract.

Pre-qualification of contractors for the main contract is completed and invitations to tender were issued on 24 September 2004. The tender period is six weeks and tenders are due for return on 5 November 2004. The dredging tender will be incorporated in the main tender but will effectively already be in progress. The other elements of the main contract will follow the dredging phase.

Racing Revenue.

Pat Rabbitte

Question:

146 Mr. Rabbitte asked the Minister for Arts, Sport and Tourism the amount he anticipates will be raised from excise duty on off-course betting and Exchequer subvention in regard to the proposed increase in the amount for the horse and greyhound racing fund; and if he will make a statement on the matter. [24908/04]

As the Deputy is aware, the Horse and Greyhound Racing Fund was established under the Horse and Greyhound Racing Act 2001 for the purpose of giving support to both racing industries. Under section 12(4) of the Act, there shall be paid into the fund out of moneys provided by the Oireachtas, in 2002 and in each subsequent year, an amount equivalent to the revenue from excise duty on off-course betting paid into the Exchequer in the preceding year or 2000 increased by reference to the consumer price index, whichever is greater.

Section 12(5) of the Horse and Greyhound Racing Act 2001 states the aggregate amount paid into the fund shall not exceed £200 million or €254 million. As this amount will be exceeded by the end of 2004 by €4 million, the Horse and Greyhound Racing Fund Regulations 2004 have been prepared with the purpose of increasing the limit to not exceed €550 million and were laid before both Houses of the Oireachtas in draft form on 22 September 2004.

It is anticipated that approximately €290.5 million will be paid into the fund in the period 2005 to 2008. Based on current growth levels in off-course betting, it is estimated that in the period 2004 to 2007, €247.5 million will be raised from excise duty on off-course betting, which would go towards the fund in the years 2005 to 2008. Assuming a consumer price index of 2.5% for the period, the amount of direct Exchequer subvention required is likely to be €43 million up to 2007 when it is expected that the fund will be financed fully from duty on off-course betting.

Health Board Services.

Finian McGrath

Question:

147 Mr. F. McGrath asked the Tánaiste and Minister for Health and Children if she has plans to assist children whose parents are involved in drugs or who have died as a result of their drug use; and if she will take action to assist these families. [24869/04]

The provision of drug treatment services is the statutory responsibility of the health boards. All health boards provide a wide range of services including counselling, education, treatment and rehabilitation.

There are two types of family support services funded by health boards: (i) general family support services which are offered to a wide range of families for the purpose of either preventing problems or addressing them after they have emerged; and (ii) child care family support services which are offered to families to promote child development in a family context.

These services include the springboard projects, which is a family support programme designed to improve the well being of children and families in Ireland and to improve the organisation and delivery of services more generally. All springboard projects have a general strategy of being open and available to all families, parents and children in their communities, as well as a more specific strategy of working intensively with those who are most vulnerable. As with other family support programmes, it offers a range of interventions, including individual work, group work, peer support, family work, advocacy and practical help.

Within the Eastern Regional Health Authority, ERHA, the South Western Area Health Board has employed a family therapist to work with the young persons programme in Fortune House. The Northern Area Health Board has developed a young persons programme in City Clinic, Domville House and the Crinan Project. It also has facilities available for the development of a young persons programme in the Finglas/Cabra area. The East Coast Area Health Board has developed a psychological intervention programme for young people. The assessment phase has commenced and the programme will begin shortly. Counselling services are currently offered to this group, to parents and to significant others.

The Drug Treatment Centre Board, through the young persons programme, provides family support counselling to families attending this service, which is offered on an individual basis or within a group setting. A family support group facilitated by its counselling team meets on a weekly basis.

The Western Health Board drug service offers a community based direct access counselling and support service to children of drug using parents. Together with its family support service and its psychology service it also offers bereavement counselling and support to children and families who have experienced loss. The national advisory committee on drugs is currently conducting a family support study and its report is due for publication shortly.

Furthermore, the Department of Social and Family Affairs is preparing a national strategy on the development of family policy and support. The overall aim of the strategy is to develop a co-ordinated integrated strategy across the various relevant policy areas designed to strengthen families in carrying out their functions in the light of demographic and other changes which have taken place, including issues related to poverty and social inclusion. The Department of Health and Children is represented on the interdepartmental committee which has been formed to progress this strategy.

Medical Cards.

Michael Ring

Question:

148 Mr. Ring asked the Tánaiste and Minister for Health and Children the number of medical cards, the number of persons covered by same and the percentage of population which this represents in the Western Health Board region, giving details on a monthly, quarterly and county basis from 1 January 2003 to date in 2004. [24870/04]

The number of medical cards, the number of persons covered by same and the percentage of population which this represents in the Western Health Board region from 1 January 2003 to date in 2004 is as follows:

County by month

Number of cards

Number of eligible persons

Percentage of population

January 2003

Galway

44,641

68,060

32.59%

Mayo

32,345

49,577

42.22%

Roscommon

13,318

20,114

37.38%

February 2003

Galway

44,594

67,888

32.51%

Mayo

32,303

49,436

42.10%

Roscommon

13,339

20,107

37.37%

March 2003

Galway

44,240

68,514

32.81%

Mayo

32,130

49,785

42.40%

Roscommon

13,278

20,207

37.56%

April 2003

Galway

44,663

67,907

32.52%

Mayo

32,416

49,497

42.15%

Roscommon

13,405

20,145

37.44%

May 2003

Galway

44,849

68,040

32.58%

Mayo

32,416

49,351

42.03%

Roscommon

13,478

20,248

37.63%

June 2003

Galway

44,813

67,880

32.51%

Mayo

32,441

49,319

42.00%

Roscommon

13,465

20,223

37.59%

July 2003

Galway

44,736

67,671

32.37%

Mayo

32,411

49,217

41.91%

Roscommon

13,511

20,257

37.67%

August 2003

Galway

44,753

67,571

32.32%

Mayo

32,406

49,143

41.84%

Roscommon

13,486

20,132

37.44%

September 2003

Galway

44,698

67,433

32.25%

Mayo

32,319

49,012

41.73%

Roscommon

13,509

20,115

37.41%

October 2003

Galway

44,820

67,596

32.33%

Mayo

32,289

48,916

41.65%

Roscommon

13,513

20,136

37.45%

November 2003

Galway

44,896

67,587

32.33%

Mayo

32,377

48,987

41.71%

Roscommon

13,586

20,207

37.58%

December 2003

Galway

44,572

67,244

32.16%

Mayo

32,176

48,680

41.45%

Roscommon

13,598

20,165

37.50%

January 2004

Galway

44,051

66,704

31.90%

Mayo

32,349

48,859

41.60%

Roscommon

13,633

20,154

37.48%

February 2004

Galway

43,945

66,432

31.77%

Mayo

32,195

48,590

41.37%

Roscommon

13,199

19,687

36.61%

March 2004

Galway

44,197

66,556

31.83%

Mayo

32,290

48,624

41.40%

Roscommon

13,286

19,771

36.77%

April 2004

Galway

44,320

66,588

31.85%

Mayo

32,290

48,554

41.34%

Roscommon

13,291

19,757

36.74%

May 2004

Galway

44,467

66,627

31.87%

Mayo

32,304

48,544

41.33%

Roscommon

13,362

19,775

36.77%

June 2004

Galway

44,487

66,596

31.85%

Mayo

32,165

48,241

41.08%

Roscommon

13,400

19,774

36.77%

July 2004

Galway

44,543

66,444

31.78%

Mayo

32,049

47,927

40.81%

Roscommon

13,487

19,881

36.97%

August 2004

Galway

44,547

66,377

31.75%

Mayo

31,977

47,709

40.62%

Roscommon

13,495

19,876

36.96%

September 2004

Galway

44,643

66,432

31.77%

Mayo

31,942

47,635

40.56%

Roscommon

13,524

19,901

37.01%

Michael Ring

Question:

149 Mr. Ring asked the Tánaiste and Minister for Health and Children, further to Question No. 202 of 7 October 2004, the comparison figure for September 2003 for the number of medical cards, number of persons covered and percentage of population for each health board area. [24871/04]

The details, as requested by the Deputy, are set on in tabular form below.

Health Board

No. of medical cards

No. of persons covered

Percentage of population

Year

2003

2004

2003

2004

2003

2004

Eastern Regional Health Authority

225,906

228,017

340,109

338,777

24.27%

24.17%

Midland Health Board

46,219

46,589

70,315

69,879

31.20%

31.01%

Mid-Western Health Board

66,541

68,034

98,416

99,605

28.98%

29.33%

North Eastern Health Board

64,894

64,592

103,200

100,048

29.92%

29.1%

North Western Health Board

59,237

60,273

98,074

98,445

44.26%

44.19%

South Eastern Health Board

89,094

90,289`

138,049

137,683

32.59%

32.5%

Southern Health Board

121,618

120,982

176,152

172,701

30.35%

29.76%

Western Health Board

90,526

90,119

136,560

133,968

35.91

35.23%

Grand Total

764,035

768,895

1,160,875

1,151,106

29.64%

29.39%

It should be noted that the upward trend in the population may marginally affect the 2004 percentage over time.

Hospitals Building Programme.

Jim O'Keeffe

Question:

150 Mr. J. O’Keeffe asked the Tánaiste and Minister for Health and Children the position with the extension to Schull Community Hospital, in view of the fact that the draft design brief was sent by the health board to her Department more than two years ago; the action which has occurred in the meantime; the prospective timetable for the completion of this work; and if she will make a statement on the matter. [24883/04]

A draft design brief for this proposed development was prepared by a project team established by the Southern Health Board and submitted to my Department. The proposal to provide an extension to the Community Hospital, Schull, can only be considered by my Department, in conjunction with the Southern Health Board, in the context of prioritising new capital commitments under the health capital investment framework 2004-08. This will have to take account of the funding resources, both capital and non-capital, required for the project, in line with the overall resources available to my Department.

In the period since the draft brief was submitted, various other capital priorities have been progressed for the board, including the Community Hospital at Bandon. In the circumstances, it is not yet possible to give a timescale for the completion of this proposed development. My Department fully appreciates the need for improved infrastructural works at the hospital and will continue to liaise closely with the Southern Health Board in the matter.

Hospital Services.

Michael Ring

Question:

151 Mr. Ring asked the Tánaiste and Minister for Health and Children when a person (details supplied) in County Mayo will be given a bed in the regional hospital in Galway. [24943/04]

The provision of hospital services for people living in County Mayo is a matter for the Western Health Board. My Department has asked the chief executive officer of the board to investigate the position in this case and to reply directly to the Deputy.

Pharmacy Regulations.

Michael Ring

Question:

152 Mr. Ring asked the Tánaiste and Minister for Health and Children her views on pharmacies being opened by doctors; and her further views on whether there will be a conflict between doctors on the GMS having their own pharmacies. [24944/04]

The opening and operation of retail pharmacies in Ireland is governed by the Pharmacy Acts 1875-1977, subject to restrictions imposed by non-pharmacy legislation such as the Planning Acts. Any individual or company, including a medical doctor, may open a pharmacy provided that the shop and the dispensing and compounding of medical prescriptions are personally supervised by a full-time pharmacist who is not acting elsewhere in a similar capacity. This has been the position since 1990.

Notwithstanding this, the dispensing and supply of medicines under the general medical services and community drugs schemes is governed by a contract between the health boards and the pharmacists under the community pharmacy contractor agreement 1996. Section 21(1) of this agreement states that the contract shall be void if a practitioner, defined as a registered medical practitioner or a registered dental practitioner, is the owner, beneficial owner, director or a shareholder of a body corporate in the area in which the pharmacy is located.

The very good reason for this is to prevent any suggestion of impropriety whereby a practitioner would prescribe medicines which are subsequently purchased in the pharmacy in which he or she has a beneficial interest. For the same reason the pharmacy review group recommends that there should be no beneficial ownership or business interest of any kind between dispensing and prescribing.

My own view is that there are valid reasons for retaining this distinction but the report of the pharmacy review group is still under consideration and I expect to take definitive decisions on it shortly.

Hospital Waiting Lists.

Bernard J. Durkan

Question:

153 Mr. Durkan asked the Tánaiste and Minister for Health and Children when hip replacement surgery will be offered in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [24974/04]

Responsibility for the provision of health services to persons residing in counties Dublin, Kildare and Wicklow rests with the Eastern Regional Health Authority. My Department has, therefore, asked the regional chief executive of the authority to investigate the matter raised by the Deputy and to reply to him directly.

Driving Tests.

Seán Ryan

Question:

154 Mr. S. Ryan asked the Minister for Transport if he will report on the proposed timescale for the establishment of the proposed driver testing and standards authority; his views on the professional relationship that has been established over the past 14 years between his Department and the driving instruction register of Ireland in the interest of road safety and the need to ensure that the highest standards were imparted to learner drivers by driving instructors; and if he will accept and recommend the validity of the current RDI status within the new authority. [24934/04]

The Government's Strategy for Road Safety 1998-2002 acknowledged that pre-driving test training in Ireland was available from private motoring schools, many of whom were enrolled under the voluntary driver instruction register, DIR, scheme. This is an industry led scheme which has received financial support from both my Department and the Irish Insurance Federation. The DIR was encouraged to attain an appropriate quality certification and in this regard additional funding was subsequently provided for the purpose of attaining ISO 9000 certification.

Proposals being developed by my Department for the regulation and quality assurance of driving instruction will involve a test of the competence of individual instructors. A working group comprising representatives of my Department and of instruction interests has formulated the design of the standard that a driving instructor must meet. I am considering what arrangements will be put in place to oversee implementation of the standard in the context of the establishment of the driver testing and standards authority, which will have responsibility for the registration of driving instructors. The Driver Testing and Standards Authority Bill 2004, which provides for the establishment of the authority, was published on 6 July 2004 and is listed for Second Stage reading in today's Order Paper.

Regulations will be required to give effect to the proposals for introducing regulation of driving instruction and the position of existing driving instructors will be considered in the context of the drafting of the regulations.

Garda Strength.

Seymour Crawford

Question:

155 Mr. Crawford asked the Minister for Justice, Equality and Law Reform the number of gardaí that have retired from the force in each of the past three years and to date in 2004; the number of new gardaí that have been trained in each of the past three years and to date in 2004; if he has satisfied himself that he will reach his target of at least 2,000 extra gardaí within the next two years; and if he will make a statement on the matter. [24853/04]

I have been informed by the Garda authorities responsible for the detailed allocation of resources, including personnel, that the numbers of gardaí who have left the Garda Síochána due to ill health, retirement, death, dismissal or otherwise, and the number of gardaí who have graduated from the Garda College in each of the past three years and to date in 2004 are as set out in the following table:

Year

No. of gardaí who left the force

No. who graduated from Garda college

2001

322

531

2002

406

485

2003

417

475

2004 to date

389

363

In addition, a further 175 persons will graduate from Garda College later this month, making a total of 538 graduations in 2004.

I am satisfied that the commitment in the programme for Government to increase the strength of the force to 14,000 will be achieved. To that regard the Government, at its meeting earlier this week, considered my proposal to increase the strength of the Garda Síochána to 14,000 and I outlined today, in Garda headquarters, the manner in which that increase will be achieved.

Registration of Title.

Michael Ring

Question:

156 Mr. Ring asked the Minister for Justice, Equality and Law Reform if the Land Registry Office will expedite an application by a person (details supplied) on a folio in County Mayo; and when this application will be completed. [24855/04]

I am informed by the Registrar of Titles that this is an application under section 49 — that is, acquisition of title by virtue of long possession — of the Registration of Title Act 1964, which was lodged on 29 September 2004. Dealing number D2004SM008371J refers.

I understand that due to their complicated nature, applications under section 49, which require detailed examination of claims for registration as owners, can take some time to process. Accordingly, it is not possible to estimate a completion date at this stage. I am further informed that the application is receiving attention in the Land Registry and will be completed as soon as possible.

Garda Strength.

Olivia Mitchell

Question:

157 Ms O. Mitchell asked the Minister for Justice, Equality and Law Reform if, in regard to the implementation of proposals based on the recent Garda Síochána SMI steering group report, there will be no diminution in the number of gardaí available during night time hours in the areas currently covered by the Dundrum, Rathfarnham and Stepaside Garda stations. [24856/04]

No diminution in the number of gardaí on duty at night in any area is envisaged arising from this report.

Citizenship Applications.

John Curran

Question:

158 Mr. Curran asked the Minister for Justice, Equality and Law Reform when a decision will be made regarding an application for naturalisation made by persons (details supplied) in Dublin 22. [24857/04]

As I have already informed the Deputy, applications from the three members of the family referred to by the Deputy were received in the citizenship section of my Department in January 2003 and January 2004.

The average processing time for an application for naturalisation is currently 24 months, due to the increase in the volume of applications being received. There are over 650 staff members employed by my Department in the provision of services for or in respect of non-nationals. Unfortunately it has been the case that over 70% of those staff are engaged full-time in activities associated with the actual processing of asylum claims or in the provision of support for asylum applicants. However, the major reduction in the number of asylum applicants is now giving me an opportunity to refocus those resources on areas of service provision for non-nationals which are under resourced at this time. The citizenship area is one of the areas which will benefit from that process.

The applications in question will be processed according to the date they were received and I will inform both the Deputy and the persons concerned as soon as I have reached a decision on the applications.

John Curran

Question:

159 Mr. Curran asked the Minister for Justice, Equality and Law Reform when a decision will be made regarding an application for naturalisation made by persons (details supplied) in Dublin 22. [24858/04]

The two persons referred to in the question arrived in the State in 2002 and applied for asylum. Subsequently, they withdrew from the asylum process and applied for leave to remain based on their parentage of an Irish born child. In early 2004, they re-entered the asylum process and their applications for refugee status were then refused by the Office of the Refugee Applications Commissioner and, on appeal, by the Refugee Appeals Tribunal.

On 15 July 2004, in accordance with section 3 of the Immigration Act 1999, as amended, the persons concerned were informed that it was proposed to make deportation orders in respect of them and they were given the following options: to make written representations within 15 working days to the Minister for Justice, Equality and Law Reform setting out reasons they should not be deported; to voluntarily leave the State or to consent to deportation.

Applications for leave to remain in the State were received from the legal representatives of the persons concerned and I expect the case to be submitted to me in due course.

Proposed Legislation.

Finian McGrath

Question:

160 Mr. F. McGrath asked the Minister for Justice, Equality and Law Reform if he will review the Explosives Act 1875 with reference to fireworks; and his proposals to deal with the increasing number of serious injuries to young persons (details supplied). [24859/04]

I assure the Deputy that I am very much aware of the distress illegal fireworks cause to people especially in and around Halloween. To strengthen the powers of the Garda Síochána to tackle this matter I have instructed officials in my Department to prepare legislative proposals significantly increasing the penalties under the Explosives Act 1875 for illegal importation, public sale and use of fireworks.

Refugee Status.

Finian McGrath

Question:

161 Mr. F. McGrath asked the Minister for Justice, Equality and Law Reform if assistance will be given to persons (details supplied) in their application for family reunification and in securing their departure from a refugee camp; and if this case will be made a priority. [24860/04]

Section 24 of the Refugee Act 1996 which deals with programme refugees, provides, inter alia, for the admission to the State of a person to whom leave to enter and remain for protection or resettlement, as part of a group of persons, has been given by the Government and whose name is entered in a register established and maintained by the Minister for Foreign Affairs. Such persons are usually admitted as part of Ireland’s annual programme refugee quota. The selection of that quota is based on a submission from the office of the United Nations High Commissioner for Refugees arising from its objective analysis of the status of the persons concerned and the need for resettlement as a durable solution.

The Irish based applicant, who is 78 years of age, was admitted to the State, together with other members of her family, under the aforementioned programme in 2003. The current application fell to be dealt with under the provisions of section 18 of the Act of 1996 which provides a statutory mechanism for the evaluation of applications for family re-unification with family members by refugees, including programme refugees, who are resident in this jurisdiction. Under section 18(3) such permission will be granted to immediate family members, that is, spouses, minor children and parents of minor children, upon verification of the authenticity of the relationship.

Applications for other dependent family members may also be made under section 18(4). Dependent members of the family means any grandparent, parent, brother, sister, child, grandchild, ward or guardian of the refugee who is dependent on the refugee or is suffering from a mental or physical disability to such an extent that it is not reasonable for him or her to maintain himself or herself fully. If such dependency is proved these applications may be granted at my discretion.

As the six additional family members who are the subject of the current application do not come within the ambit of either of these provisions I am not in a position to grant family re-unification under the provisions of the Act.

Crime Prevention.

Finian McGrath

Question:

162 Mr. F. McGrath asked the Minister for Justice, Equality and Law Reform if there are Irish criminals living in the Alicante region of Spain; and the number of persons suspected of having criminal connections with Ireland. [24861/04]

I understand from the Garda authorities that the activities of individuals with known criminal backgrounds living outside this jurisdiction are monitored in co-operation with our European partners. I further understand from the Garda authorities that intelligence is collected and collated as an aid to criminal investigations with a view to bringing prosecutions against those involved in criminal activity.

The disclosure of any aspect of such criminal intelligence would breach agreed protocols with foreign police forces and intelligence services regarding the ongoing exchange of information of mutual benefit. Such disclosure would also be likely to have a negative impact on the potential value of intelligence to criminal investigations.

Departmental Programmes.

Mary Upton

Question:

163 Dr. Upton asked the Minister for Justice, Equality and Law Reform the names and addresses of, and the amount sought by all persons under the equal opportunities child care programme in regard to applications which have been paid in full; and the same details in regard to the applications still pending. [24886/04]

In July 2004, my Department circulated a comprehensive review of the progress on the implementation of the Equal Opportunities Childcare Programme 2000-2006 to all Deputies and Senators for their information. This review contains a detailed list of all grants approved to December 2003 under the programme and includes location by county, the funding approved and impact on child care places in each case, where appropriate. This document is also available on my Department's website and it is intended that updates of key data will be circulated half yearly with a further comprehensive review in 2006.

To date I have approved almost 3,000 grant applications under the EOCP, making €266 million in capital, staffing and quality improvement grants for child care nationwide. A total of €223.1 million has been approved for a wide range of capital and staffing projects across the country and, on completion of the EOCP, this funding is projected to create over 30,000 new child care places. A significant part of the remaining funding will be required to roll over staffing grant supports being made available to child care facilities which cater for disadvantaged families and for ongoing supports to the city/county child care committees and the national voluntary child care organisations.

In a programme with over 2,000 grant beneficiaries, including almost 800 grants receiving ongoing current funding, the provision of a list of grants which have been paid in full is unlikely to give a meaningful picture of progress under the EOCP.

Expenditure for the programme to June 2004 is €171.9 million under capital, staffing and quality improvement measures. Of the total spend to June, €138.4 million has been spent by child care groups which are developing and directly providing child care places. I also understand that 20,500 new places are currently in place as a result of the EOCP expenditure to date. In addition, over 20,600 existing places have received support under the programme.

Given their commercial sensitivity, the Department does not release the details of grant applicants in advance of the completion of the appraisal and decision processes. I would also note to the Deputy that in addition to applications on hand a large number of projects are now beginning to come to the end of their original funding cycle. Proposals for ongoing staffing supports to groups whose original funding or continuation funding elapses shortly are currently being developed in my Department. In this context, it is expected that only those groups which clearly provide child care services for families with significant levels of disadvantage and where the parents are in employment, education or training will receive ongoing staffing supports under the Equal Opportunities Childcare Programme 2000-2006.

United Nations Conventions.

David Stanton

Question:

164 Mr. Stanton asked the Minister for Justice, Equality and Law Reform the position, with reference to Ireland, regarding the United Nations Convention on the Elimination of all forms of Discrimination Against Women; the reservations entered into by Ireland on any article of this convention; and if he will make a statement on the matter. [24887/04]

Ireland acceded to the United Nations Convention on the Elimination of all forms of Discrimination Against Women, CEDAW, in 1985 with a number of reservations, many of which have been removed over the intervening years, including one earlier this year. Ireland currently retains three reservations on the convention relating to: employment, Article 11(i); certain provisions of the social welfare code, Article 13 (a); and guardianship rights of fathers of children born outside of marriage, Article 16.1 (d) and (f).

With regard to Article 11(i), the Department is currently considering whether the recent enactment of the Employment Equality Act 2004, which amends some of the provisions of the Employment Equality Act 1998, could allow for the lifting of this reservation. The point at issue here relates to exclusions in the 1998 Act in respect of the Garda Síochána and the Prison Service and in regard to privacy concerns and decency considerations, including in the care of the elderly or people with disabilities in their own home.

The reservation to Article 13 (a) is required due to provisions of Irish legislation in areas of social security which are more favourable to women than men, such as the payment of child benefit to the mother and transitional payments to some women relating to the pre-1997 one parent family payment which have yet to run their course.

Finally, with regard to the reservation in respect of Article 16.1 (d) and (f), the position is that in Ireland mothers of children born outside of marriage are automatically the guardians of their children, whereas non-marital fathers must acquire the status of guardian under procedures outlined in the Guardianship of Infants Act 1964, as amended by Acts of 1987 and 1997. The Attorney General has advised that this practice prevents the withdrawal of this reservation.

Grant Payments.

Bernard J. Durkan

Question:

165 Mr. Durkan asked the Minister for Justice, Equality and Law Reform when the grant assistance application in the name of a person (details supplied) in County Kildare will be awarded in view of the fact that same was applied for in May 2004; and if he will make a statement on the matter. [24891/04]

An application for capital grant assistance from the 2000 — 2006 Equal Opportunities Childcare Programme was submitted by this private child care provider to my Department in May 2004. The day to day administration of the programme is undertaken by Area Development Management Limited, which has been engaged by my Department to carry out thorough assessments against the programme criteria of all applications for grant assistance, on my behalf.

The assessment process can involve lengthy dialogue with the applicant and, in this instance, this capital application is in the final stages of the assessment process. On completion of this assessment process, the project will be referred to the programme appraisal committee, chaired by my Department, which makes a funding recommendation to me before I make a final decision on the matter. In the interim, it would be premature of me to comment further on this capital grant application.

Tribunals of Inquiry.

Caoimhghín Ó Caoláin

Question:

166 Caoimhghín Ó Caoláin asked the Minister for Justice, Equality and Law Reform if he or his predecessor’s attention has been or was drawn to the unauthorised and improper tapping by gardaí of the telephone of persons (details supplied) in County Donegal as revealed at the Morris tribunal; and if he will make a statement on the matter. [24911/04]

I understand that the question of the obtaining of telephone call related data — as opposed to the interception of telephone calls — arose recently during the course of the hearing of evidence in the Morris tribunal. It is for the tribunal to reach its own conclusions in the matter, and it would not be appropriate for me to comment in any way on the issue at this point.

Visa Applications.

Denis Naughten

Question:

167 Mr. Naughten asked the Minister for Justice, Equality and Law Reform if a C visa issued by his Department can be renewed or extended; the procedure involved; and if he will make a statement on the matter. [24913/04]

A wrap around information sheet accompanies every visa application form. That sheet makes it clear to the applicant that, in general, persons granted visas for particular purposes are not permitted to involve themselves in any activity or to remain in the State for any purpose other than that for which the visa was granted.

Every visa applicant is required to state on the application form the dates on which he or she proposes to enter and leave Ireland. He or she is also required to declare that the information supplied is correct and complete.

A C visa is granted for visits of less than 90 days. As a consequence, it is not the general policy to extend permission to remain to persons who are admitted initially for a period of 90 days or less on a C visa, save in very exceptional and unforeseen circumstances. However, applications to extend permission to remain in such cases — supported by reasons underpinning the inability to comply with the prior existing commitment — should be made in writing to the immigration division of my Department.

Citizenship Applications.

Denis Naughten

Question:

168 Mr. Naughten asked the Minister for Justice, Equality and Law Reform if he will furnish a response to correspondence from a person (details supplied) in County Roscommon; and if he will make a statement on the matter. [24914/04]

The immigration division of my Department has no record of the correspondence referred to by the Deputy. The person concerned should write to the Immigration and Citizenship Division, Department of Justice, Equality and Law Reform, 13-14 Burgh Quay, Dublin 2, giving full details of the matter. On receipt of the relevant information a suitable response will be furnished.

Detention Centres.

Jim O'Keeffe

Question:

169 Mr. J. O’Keeffe asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the serious concerns which have been expressed concerning the current position in an institution (details supplied) particularly about the lack of adequate and proper education, welfare and care facilities for young persons aged 16 and 17 years; if in fact these young persons or some of them are mixing with adult prisoners; if school and gym facilities and workshops are being used; if not, the reason; and if he will make a statement on the matter. [24931/04]

I am not aware of serious concerns in regard to the provision of education, welfare or care facilities for young persons committed to the institution referred to in the question. I am informed by the director general of the Irish Prison Service that the school at this institution is fully operational at present with an inmate participation rate of almost 50%. The main gymnasium is fully operational and a second small gym facility located in one of the wings of the institution operates for most of its scheduled hours and is closed only when the staff have to be assigned to other more pressing duties.

Welfare services are currently provided by a team comprising one senior probation and welfare officer and three probation and welfare officers — a resource level which is above average for institutions managed by the Irish Prison Service. The two small workshops, woodwork and metalwork, at this institution are closed at present because of continuing restrictions on prison officer overtime and because of health and safety considerations. However, it is planned to re-open these facilities in the coming months when they have been renovated to provide computer classes and training in painting and decorating.

This institution is a closed place of detention for young persons, male, aged between 16 and 21 years of age. As of yesterday, there were 192 young persons in custody there, of whom 60 were aged 16 or 17 years of age. There is no provision at present for segregation on grounds of age at this institution but, resources permitting, it is planned to bring a mixture of new and renovated accommodation into use there in the near future which will allow for a total of 44 sixteen and 17 year olds to be accommodated separately.

Public Order Offences.

Jim O'Keeffe

Question:

170 Mr. J. O’Keeffe asked the Minister for Justice, Equality and Law Reform his policy on the imposition of on the spot fines for those who commit public order offences; and if he will make a statement on the matter. [24932/04]

My proposals on the imposition of fixed charges for certain public order offences are contained in the Criminal Justice Bill 2004 which I published in July this year. Section 29 of that Bill amends the Criminal Justice (Public Order) Act 1994 to provide for a fixed penalty procedure for certain public order offences under that Act. The procedure will apply to an offence under section 4, intoxication in a public place, and section 5, disorderly conduct in a public place. It is intended that the fixed penalty procedure will be an alternative to criminal proceedings being taken in the first instance. The Bill is awaiting Second Stage in the Dáil.

Garda Deployment.

Jim O'Keeffe

Question:

171 Mr. J. O’Keeffe asked the Minister for Justice, Equality and Law Reform his views on the proposal that nightclub owners and retailers should pay for the cost of putting extra gardaí outside their premises to combat late night street crime; and if he will make a statement on the matter. [24933/04]

I have been informed by the Garda authorities who are responsible for the detailed allocation of resources, including personnel, that the possibility of nightclub owners and retailers contributing to the cost of putting extra gardaí outside their premises to combat late night street crime is being considered by a working group set up under the chairmanship of an assistant commissioner.

Citizenship Applications.

Bernard J. Durkan

Question:

172 Mr. Durkan asked the Minister for Justice, Equality and Law Reform the residency and employment status of persons (details supplied) in County Kildare; if either or both are eligible for citizenship applications; and if he will make a statement on the matter. [24976/04]

The first named person in question arrived in the State on 25 June 1999 and claimed asylum. The Office of the Refugee Applications Commissioner recommended that he should not be declared as a refugee and he was notified of this recommendation on 29 February 2000. He then appealed this recommendation to the Refugee Appeals Tribunal. Following an oral hearing, the original recommendation was affirmed and he was informed of this decision on 28 November 2001.

The second named person in question, who resides at the same address as the first named person, arrived in the State on 23 May 2000 and claimed asylum. The Office of the Refugee Applications Commissioner recommended that she should not be declared as a refugee and she was notified of this recommendation on 30 January 2002. She then appealed this recommendation to the Refugee Appeals Tribunal. Following an oral hearing, the original recommendation was affirmed and she was informed of this decision on 18 October 2002.

In accordance with section 3 of the Immigration Act 1999, as amended, both persons were informed — on 28 December 2001 and 30 December 2002 respectively — that it was proposed to make deportation orders in their cases. They were given the options of making representations within 15 working days setting out the reasons as to why they should not be deported; leaving the State voluntarily before orders were made; or consenting to the making of deportation orders. Representations were received on behalf of the persons concerned on 21 January 2002 and on 23 January 2003, respectively.

Both persons' case files must now be considered taking account of section 3(6) of the Immigration Act 1999, as amended, and section 5 of the Refugee Act 1996, prohibition of refoulement. The files will be submitted to me for decision in due course and the persons concerned will then be informed of the outcome.

The right to work for asylum seekers is based on the Government decision of 26 July 1999 which allowed asylum seekers to seek employment once they had applied on or before that date, had been 12 months without a final determination on his/her asylum application and had been compliant with their obligations in the asylum process. The first named person concerned was issued with a right to work letter on 15 August 2000 but has not been entitled to seek employment since the refusal of his asylum application on 28 December 2001. The second named person concerned was not issued with a right to work letter.

As no final decision has been made on these persons' leave to remain applications, they are not eligible to apply for citizenship.

Tribunals of Inquiry.

Niall Blaney

Question:

173 Mr. Blaney asked the Minister for Justice, Equality and Law Reform the reason a number of constituents of this Deputy in Donegal who are involved in tribunals do not have the right to legal representation of their choice by lawyers who are known to them and trusted by them (details supplied); and if he will make a statement on the matter. [24978/04]

From the details supplied it is not clear exactly to whom the Deputy is referring. A number of parties applied to the tribunal and were granted the right to representation before it. The criterion used by the chairman in deciding this was whether the good name of the individual concerned was likely to be in jeopardy or called into question during the course of the proceedings. On this basis a large number of individuals were granted representation and it was only where the chairman considered that an individual's good name was not in peril that representation was not granted.

It has transpired that a number of parties granted the right to representation have chosen not to exercise their right or have exercised it only to a limited extent. A number of these parties have cited the ongoing costs as a reason for not engaging a legal team or for not continuing to brief a legal team where one had previously been engaged. Some parties have sought to have their legal fees paid in advance or guaranteed by the State. However, the fact is that under the legislation governing tribunals the question of costs is a matter solely for the tribunal to decide.

With regard to the Morris tribunal, it may be reassuring for parties to note that the chairman has recently addressed the question of costs relating to the report on the first module very soon after the publication of the report rather than waiting until finalisation of all the tribunal's work. It is hoped that this prompt settling of the costs on a modular basis will be of comfort to those parties who may be in two minds over the question of engaging counsel to represent their interests.

Waste Disposal.

David Stanton

Question:

174 Mr. Stanton asked the Minister for the Environment, Heritage and Local Government the progress regarding plans to introduce pay by weight systems as part of refuse collection services nation-wide; if it is mandatory for all domestic waste collection, including private operators, to be operating pay by weight systems by a certain date; the incentives that are in place to encourage private waste disposal operators to use pay by weight systems; and if he will make a statement on the matter. [24882/04]

The 2004 policy statement 'Waste Management: Taking Stock and Moving Forward' sets 1 January 2005 as the date for the introduction of weight-volume based waste charges on a national basis. It is a matter for the local authorities, whether as direct service providers or waste collection permitting authorities, to oversee the move to weight-volume based charging.

Service providers will be allowed discretion as to the precise systems to be used, provided that the fundamental principle of use based charging is respected. I understand that the relevant local authorities are currently reviewing waste collection permits with a view to ensuring consistency with the new policy requirement.

Planning Issues.

David Stanton

Question:

175 Mr. Stanton asked the Minister for the Environment, Heritage and Local Government the regulations and guidelines in place to ensure that civic and social amenities are put in place in conjunction with housing development; if he has satisfied himself that any such guidelines or regulations are being followed; his plans to examine the need for civic and social amenities in communities; and if he will make a statement on the matter. [24888/04]

Section 10(2) (j) and (l) of the Planning and Development Act 2000 requires planning authorities to include in their development plans objectives for the preservation, improvement and extension of amenities and recreational amenities, and also for the provision of services for the community including, in particular, schools, crèches and other education and child care facilities.

I intend to issue draft guidelines on development plans shortly, which will emphasise the consideration that needs to be given to the future availability of, or the capacity to provide, supporting infrastructure, such as community facilities, health care, education, public open space, retail and other service provision and public transport when allocating land for development. These guidelines will support planning authorities in ensuring that such facilities are put in place in parallel with new development, through the development control process.

I am satisfied that these provisions, underpinned by the new guidelines, will help to ensure that the necessary social and community facilities complement future developments.

Private Rented Accommodation.

Denis Naughten

Question:

176 Mr. Naughten asked the Minister for the Environment, Heritage and Local Government the projected income in 2004 and in 2005 by the Private Residential Tenancies Board from registration fees charged to landlords; the projected operational costs in both years; and if he will make a statement on the matter. [24915/04]

As the Private Residential Tenancies Board is not yet fully operational, it is difficult to provide reliable estimates at this stage. Expenditure will depend to a large extent on the number of disputes referred to the board's dispute resolution service. Expenditure in 2004 is considered unlikely to exceed €0.25 million. Full year operational costs in 2005 are estimated as likely to be in the region of €2.5 million.

Registration fee income will depend primarily on the number and timing of tenancy registrations. It will also be influenced by a range of factors the likely effect of which cannot be quantified in advance. These include the duration of tenancies, the turnover of registrations in respect of a particular dwelling, the availability of a reduced composite fee for certain multiple registrations in respect of a single property and the incidence of late registrations, which attract a double fee.

Denis Naughten

Question:

177 Mr. Naughten asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that the Private Residential Tenancies Board registration fee discriminates against student accommodation which requires at least two registrations in each calendar year; the plans he has to review the fee structure; and if he will make a statement on the matter. [24916/04]

Under the provisions of the Residential Tenancies Act 2004, each new tenancy coming into existence in respect of any particular dwelling must be registered with the Private Residential Tenancies Board. This applies to any tenancy of a private rented dwelling, including dwellings let to students. Where a particular student tenancy is continued from one academic year to the next, re-registration does not arise. In this regard, student representatives have emphasised the need for students, depending on their circumstances, to have access to improved security of tenure in common with other occupants in the private rented sector.

However, where student accommodation is re-let, no more than two registration fees are payable in any 12 month period. Where accommodation is let for holiday purposes, as frequently occurs during student vacations, there is no requirement to register and therefore no further payment of a registration fee arises. Accordingly, I do not consider that a review of the statutorily based registration fee structure in this matter is warranted.

Denis Naughten

Question:

178 Mr. Naughten asked the Minister for the Environment, Heritage and Local Government the reason for the Private Residential Tenancies Board collecting such detailed information from landlords; the intended use of this information; and if he will make a statement on the matter. [24917/04]

The particulars to be provided with a tenancy registration application are prescribed in the Residential Tenancies Act 2004, based on the recommendations of the Commission on the Private Rented Residential Sector. I am satisfied that the requirements are reasonable and appropriate for the operation of the legislation.

The Private Residential Tenancies Board's registration database will be of key importance to the operation of its dispute resolution service, especially with regard to disputes over rents in excess of market levels, tenancy terminations and notice periods. It will also be an important source of information to the board in the performance of its statutory functions of providing information, research and policy advice on the private rented sector. Up to date information is essential for the development of informed policy on this segment of the housing market. The registration data collected by the board will, for example, enable it to identify the size of the market, the type of dwellings and rent levels and trends for different dwellings and locations.

Turbary Rights.

Denis Naughten

Question:

179 Mr. Naughten asked the Minister for the Environment, Heritage and Local Government if he will allow additional compensation to be given to bog owners who sold their turbary rights to Dúchas prior to the year 2000 in line with the commitment given by Dúchas at the time of purchase; and if he will make a statement on the matter. [24918/04]

Under the cessation of turf cutting scheme, operated by my Department, all sales of bogs and turbary rights are entered into voluntarily. All parties entering into an agreement prior to the new rates being announced agreed to the compensation rates applicable at that time.

However, for bogs designated prior to 2002, the new additional incentive payment recently announced will be applied retrospectively to those who have already sold bogs or turbary and the £1,000 or €1,270 incentive payment, where already paid, will be deducted.

Local Authority Funding.

Michael Ring

Question:

180 Mr. Ring asked the Minister for the Environment, Heritage and Local Government the local authorities which have submitted applications for funding under the rural water programme for 2004; and the amounts which have been approved for and drawn down by each local authority. [24946/04]

Details of my Department's 2004 block grant allocations to county councils under the rural water programme, and of the value of recoupments made to councils to date this year, are set out in the following table.

County Council

2004 allocation

Recoupments to 12/10/04

Carlow

2,440,000

1,414,716.94

Cavan

12,133,333

6,778,567.37

Clare

6,100,000

2,345,052.80

Cork North

1,462,000

0.00

Cork South

1,775,000

969,430.00

Cork West

1,700,000

1,700,000.00

Donegal

3,648,000

0.00

Galway

7,483,333

2,379,258.59

Kerry

2,750,000

1,525,000.00

Kildare

1,600,000

753,114.57

Kilkenny

1,786,000

650,000.00

Laois

1,700,000

1,125,000.00

Leitrim

4,550,000

1,832,183.00

Limerick

3,750,000

0.00

Longford

1,950,000

0.00

Louth

1,010,000

0.00

Mayo

8,000,000

4,795,747.49

Meath

2,191,667

736,366.55

Monaghan

5,720,000

1,477,163.98

North Tipperary

3,000,000

2,011,665.00

Offaly

1,750,000

1,750,000.00

Roscommon

2,777,334

1,419,000.00

Sligo

4,650,000

2,456,442.44

South Tipperary

2,070,000

400,000.00

Waterford

1,670,000

635,000.00

Westmeath

2,583,333

0.00

Wexford

2,300,000

0.00

Wicklow

1,750,000

375,000.00

Local Government.

Dan Boyle

Question:

181 Mr. Boyle asked the Minister for the Environment, Heritage and Local Government the urban areas in this country with a population of over 7,500 persons yet without town council status; and when such towns will be considered by him and his Department to receive such a status. [24951/04]

Section 185 of the Local Government Act 2001 provides that qualified electors of a town having a population of at least 7,500 as ascertained at the last preceding census and not having a town council may make a proposal for the establishment of such a council. Under the relevant provisions of the Act, which I hope to commence in the near future, a proposal to establish a town council is a matter for the local community in the first instance and thereafter a decision on whether to proceed further with such a proposal is a reserved function of the relevant county council, following a public consultation process. While towns with a population of 7,500 or more may be identified from the published 2002 census report, volume 1, the process of establishing a town council must be initiated at local level. It is not possible to indicate the towns which may decide to initiate such proposals or the timing of any such proposals.

Social Welfare Benefits.

Michael Ring

Question:

182 Mr. Ring asked the Minister for Social and Family Affairs the number of persons in the past three years who have applied for the back to school clothing and footwear scheme; the number who were approved and were awarded the scheme; when the guidelines were last increased with regard to this scheme; and if entitlement to this grant is retained if a person returns to work on a back to work allowance, as is the case with other secondary benefits. [24947/04]

The back to school clothing and footwear allowance scheme provides assistance towards the cost of school clothing and footwear for children attending mainly primary and post-primary schools. Under the scheme, an allowance of €80 is payable in respect of qualified children aged two to 11 years while €120 is payable in respect of qualified children aged 12 to 22 years. The income limits for the scheme are adjusted on an annual basis. Details of the income limits for 2004 are set out in the tabular statement below, together with the number of applications received, awarded and refused for the years 2001, 2002 and 2003. In 2004, 73,268 applications have been received in the period to 30 September. However, details of the number of applications awarded and the number refused in 2004 are not yet available.

A person may qualify for payment of the back to school clothing and footwear allowance if he or she is in receipt of a qualifying social welfare or health board payment or is participating in an approved employment scheme, such as the back to work scheme or a recognised education or training course, and has household income at or below the prescribed levels. Where the prescribed income limits are exceeded in the case of persons participating in approved employment schemes, including the back to work scheme, special arrangements are in place which allow such people to retain entitlement to back to school clothing and footwear allowance subject to a separate income limit of €317.43 per week. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit.

In effect, this means that people who had been unemployed and who commenced employment through the back to work scheme can have a weekly household income significantly in excess of €317.43 and still qualify for the back to school clothing and footwear allowance. In the first year of his or her participation in the back to work scheme, a single person can have combined income from the back to work allowance and wages of €418.50 while a couple with two children can have an income of €510.75. A participant on a back to work scheme may be assessed under either the retention rules applicable to employment scheme participants or the income limits of the back to school clothing and footwear scheme itself, whichever is more beneficial.

Back to school clothing and footwear allowance scheme

Year

Applications received

Applications refused

Applications awarded

2001

71,660*

7,691*

63.969

2002

78,181

6,422

71,759

2003

81,851

6,649

75,202

* Does not include applications refused by the South Eastern Health Board as these data are not available.
The BSCFA standard income limits for 2004 are as follows:

Couple with

Income limit

Lone parent with

Income limit

1 child

348.10

1 child

238.90

2 children

367.40

2 children

260.50

3 children

386.70

3 children

282.10

4 children

406.00*

4 children

303.70**

* Limit is increased by €19.30 for each additional child
** Limit is increased by €21.60 for each additional child

Bernard J. Durkan

Question:

183 Mr. Durkan asked the Minister for Social and Family Affairs the reason dietary allowance has been reduced in the case of a person (details supplied) in County Kildare who is a celiac; and if he will make a statement on the matter. [24965/04]

The South Western Area Health Board was contacted regarding this case and has advised that a review of the person's diet supplement was carried out in May 2004 during which it came to light that an incorrect amount of diet supplement was in payment. The amount of supplement was duly corrected and a revised supplement was awarded from June 2004. The board has further advised that this person's diet supplement is subject to a further review, the outcome of which may affect the amount payable.

Bernard J. Durkan

Question:

184 Mr. Durkan asked the Minister for Social and Family Affairs the reason for the fluctuation of rent allowance in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [24966/04]

Under the standard rules for entitlement to rent supplement, the supplement is of such amount as to ensure that the person's income after payment of rent is the rate of supplementary welfare allowance appropriate to his or her family circumstances, less €13. Where a person is in receipt of a basic weekly payment other than supplementary welfare allowance, any change in household composition, for example, an additional child, will mean some change in the level of rent supplement. Any other change in household income also affects the amount of rent supplement payable.

With regard to the person concerned, there have been a number of changes in both family composition and the level of household income which necessitated reviews and consequent adjustments to the amount of supplement payable. The South Western Area Health Board has advised that the amount of supplement was adjusted most recently in light of additional maintenance payments, as advised by the person concerned, in respect of her second child. The adjustments which were made were in accordance with the rules governing payment of rent supplement under the scheme.

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