John Perry
Question:10 Deputy John Perry asked the Minister for Finance if he is monitoring charges made to bank customers over inter bank rates set by the European Central Bank; and if he will make a statement on the matter. [12594/09]
Written Answers.
The following are questions tabled by Members for written response and the ministerial replies as received on the day from the Departments [unrevised].
Questions Nos. 1 to 9, inclusive, answered orally.
Banking Sector Regulation.
The Deputy may wish to note that the decision whether an institution operating in Ireland passes on ECB interest rate reductions to customers is primarily a commercial decision for the institution concerned.
However, as the Deputy will be aware, I have publicly indicated that I expect institutions to pass on funding cost reductions to their customers as appropriate, including in particular to those purchasing properties on variable mortgages and to small and medium-sized enterprises. This is important to help support sustainable growth and employment in line with the objectives of the Government guarantee scheme and the Government's recapitalisation programme.
For example in the case of mortgage interest rates, I understand that in general credit institutions differentiate between mortgages of owner occupiers and residential investors for the purposes of setting mortgage interest rates. I have been informed by the Financial Regulator that all of the covered institutions have fully passed on each ECB interest rate cut to owner occupiers since the bank guarantee scheme was introduced and that this will be so for the latest ECB cut announced on 5 March 2009.
However, it must be borne in mind that credit institutions are not primarily funded from the ECB but from a variety of sources and the cost of much of their funding has been significantly above ECB rates over the last year.
The Deputy will be aware that many lenders are conducting extensive advertising campaigns, showing that competition is a real factor on the mortgage scene. The existence of that level of competition in the mortgage lending market is sufficient, I believe, to ensure that credit institutions will reduce their rates where possible in order to remain competitive and retain their share of the market.
The Deputy will appreciate that a balance must be achieved by Government between influencing private banks through the bank guarantee scheme and other financial support incentives while at the same time being seen to have a hands-off approach to the day to day running of these institutions which must operate on a strictly commercial basis.
Motor Industry.
Seán Barrett
Question:11 Deputy Seán Barrett asked the Minister for Finance his views on the impact of the VAT clawback on the motor trade in times of recession. [12521/09]
I am conscious of the decline in the motor industry in Ireland and internationally due to the contraction in economic activity. I and my officials have had meetings with representatives of the motor industry on the matter.
In the case of second-hand cars a special VAT scheme is in place in Ireland. This special scheme was introduced in 1994, following strong representations from the motor industry, as a derogation under the VAT Directive. The scheme contrasts with the Margin Scheme, which operates in most other Member States.
The special scheme allows motor dealers, at the time of purchase, to claim credit for residual input VAT which is considered to be included in the cost of acquiring a second-hand car from a customer. When the car is subsequently resold, the VAT is chargeable on the full sale price of the car or on the original purchase price paid by the dealer, whichever is the higher. This is necessary because the dealer has already been granted a credit in relation to the residual input VAT incurred. The special scheme allows dealers the maximum benefit by allowing an immediate deduction of residual VAT at the point of purchase. The VAT credit already allowed on second-hand cars must, despite the industry's view, be seen for what it is, i.e. money advanced to dealers by the Exchequer which they are only repaying when they resell the second-hand cars.
Under the Margin Scheme, garages and dealers would account for VAT on their profit margin only, i.e. on the difference between the cost of acquiring and selling the second-hand cars involved. Under the Margin Scheme, there would be no entitlement to a deduction on the acquisition of the car and consequently the question of a VAT clawback would not arise.
Although with the changing economic circumstances dealers have found themselves selling traded-in second-hand cars at a loss, which is increasingly giving rise to clawbacks of VAT situations for dealers, it is not possible to write-off the VAT credit already allowed to the dealers on second-hand cars. In this context the Revenue Commissioners have however granted concessionary treatment which allows dealers to postpone payment in respect of the clawbacks over the past number of months until 19 May 2009.
The motor industry has made calls for the introduction of a Margin Scheme for second-hand cars in conjunction with the writing-off of the outstanding VAT credits already provided to dealers in respect of second-hand cars. I am not opposed to the introduction of such a Margin Scheme, but not on the basis that the outstanding VAT credit already provided to dealers in relation to their existing stock of second-hand cars would be written-off in full.
Insurance Industry.
Andrew Doyle
Question:12 Deputy Andrew Doyle asked the Minister for Finance his views on recent reports that insurance costs are rising at a time when prices generally are falling; and his further views on whether policy changes could play a role in containing these trends. [12552/09]
I am aware of the reports referred to by the Deputy. Insurance costs reflect a broad range of factors, including for example, the level of cover, the number of claims, legal and administration costs, the cost of fraud as well as the overall cost level in the economy.
My Department has been advised by the Financial Regulator that while the non-life insurance market performed well up to the end of 2006, market sources indicate that much non-life business was written at a loss in 2007. This trend continued in 2008, but the companies were still willing to write business at a loss in order to maintain their market share. They were able to do this as a result of the reserves they had built up during profitable years. However, the situation could not go on indefinitely and indications are that firms are now taking action on pricing to underpin their financial positions.
In the current difficult trading climate, there is a delicate balance to be struck between ensuring the long-term sustainability of the insurance industry and at the same time making sure that the consumer obtains good value for money. I am particularly conscious of the impact of a significant increase in premiums for both the consumer and business and it must be a priority for insurance companies to ensure that insurance cover is provided as competitively as possible consistent with long term commercial sustainability and viability.
The Deputy will be aware that like all financial service providers, the insurance industry is also affected by the continuing stress in the financial markets and the recessionary pressures in the economy. This is likely to be one of the reasons for increases in areas such as motor insurance.
In conclusion, the recent upward trend in insurance prices reflects a range of factors outside the control of the industry. It would not, therefore be appropriate from a policy perspective to seek to intervene in the commercial conduct or decision making of insurance firms in the absence of clear evidence of market failure in respect of which there is scope to address from a national perspective.
Economic Forecasts.
Shane McEntee
Question:13 Deputy Shane McEntee asked the Minister for Finance if he plans to publish tax forecasts for 2009, 2010 and 2011 before the emergency budget. [12575/09]
The Addendum to the Stability Programme Update, published on 9 January last, forecast total tax receipts in 2009 of approximately €37 billion. However, in light of the continuing weakness in the Exchequer Returns, my Department now anticipates that there could be a shortfall of up to €3 billion on this figure. This would mean that only €34 billion in tax receipts would be collected in 2009, representing a year-on-year decline of over 16 per cent.
Economic growth has also continued to weaken and lower levels of economic activity will obviously have implications for future tax revenue receipts.
In light of this, the Government decided to announce further measures to stabilise the budgetary situation. This will involve the introduction of additional taxation and expenditure measures in 2009 to address the continued deterioration in the public finances. The Supplementary Budget will be presented to the Dáil on the 7th of April and will set out a multi-annual plan to restore stability to the public finances. The scale of the challenge we face means that all options must now be on the table, including action on both current and capital expenditure, as well as revenue raising measures. The Government has already taken significant action to restore stability to the public finances and the Supplementary Budget will continue this process. Taking action now will ensure that confidence in our public finances can be restored and that we are positioned to take advantage of a recovery in the international situation when it occurs.
The Government has sought to engage all parties in our efforts to address the difficulties in the public finances and with this in mind I have made my Department available to the Opposition on an unprecedented scale by arranging for officials to brief the main opposition spokespersons on the latest available figures and on the emerging position. The Opposition has also been asked to submit any proposals they may have to the Department of Finance for costing by officials and I am open to considering what further information that can be made available is put into the public domain in advance of the Supplementary Budget.
Public Sector Redundancies.
Terence Flanagan
Question:14 Deputy Terence Flanagan asked the Minister for Finance if he has developed the terms of a scheme of voluntary redundancies for the public service; the details of the scheme; and the staff reductions planned. [12562/09]
Proposals for Voluntary Early Retirement (VER) are being developed at present for the public service. However, I would point out that VER has to be seen in the wider context of the problems facing the public finances, and the related requirement for greater control and discipline in regard to public service numbers generally.
The programme of rationalisation of State agencies, which I announced in Budget 2009, is relevant in this regard. Work on implementing the rationalisation measures is now proceeding across all relevant Government Departments, and the broad approach to identifying and addressing staff surpluses may arise for consideration in particular areas. The options for redeployment of staff generally within the civil service, and across the wider public service, are issues that logically fall to be considered in advance of the question of VER, and indeed my Department is considering these issues proactively at present.
Moreover, the Special Group on Public Service Numbers and Expenditure Programmes was established to examine the current expenditure programmes in each Department and to make recommendations for reducing public service numbers so as to assist the Government in its task of returning the public finances to a sustainable position. The potential staff savings identified by the Special Group, and the mechanisms for addressing any surpluses, will likewise fall to be considered by the Government in due course in the context of an overall approach to controlling public service numbers, including any possible role for VER schemes in this regard.
Customs Service.
Jim O'Keeffe
Question:15 Deputy Jim O’Keeffe asked the Minister for Finance the resources available to the Revenue Commissioners and the customs service to combat cigarette smuggling; his views on whether such resources are adequate; and if he will make a statement on the matter. [12459/09]
Jim O'Keeffe
Question:18 Deputy Jim O’Keeffe asked the Minister for Finance the estimated amount in value of cigarettes smuggled into Ireland in each of the past three years; and the loss to the Exchequer arising therefrom in each of the three years. [12458/09]
I propose to take Questions Nos. 15 and 18 together.
I am informed by the Revenue Commissioners that they are not in a position to provide a reliable estimate of the number and value of cigarettes smuggled into Ireland in each of the past three years due to the fact that there is no proven method for determining this figure.
Estimating the tax gap or the amount of tobacco tax lost as a result of smuggling is particularly difficult because of the multiple factors that have to be taken into account. For instance, a drop in the overall tax take may be partly due to a decline in smoking levels as a result of the various anti-smoking campaigns. Increased legal purchase of duty paid cigarettes in other EU member states for personal use is also a factor, particularly in the context of low cost air travel and more frequent foreign holidays. This, of course is perfectly legal in the context of the EU principle of freedom of movement. Consequently the only reliable information available which I can give to the Deputy is the quantity and value of contraband cigarettes intercepted and seized by Customs and also the volumes of cigarettes on which duty is collected each year.
Details of the above for each of the past three years are as follows:
|
Year |
No. of cigarettes duty paid |
No. of cigarettes seized |
Estimated retail value of cigarettes seized |
|
€ |
|||
|
2006 |
5,604,884,000 |
51,180,921 |
17,529,465 |
|
2007 |
5,401,702,000 |
74,520,798 |
25,597,894 |
|
2008 |
4,940,567,000 |
135,243,859 |
54,435,315 |
Revenue is aware of a variety of methodologies that are used internationally by the tobacco industry and some Customs and Revenue Administrations for the purposes of estimating the quantity and value of cigarettes smuggled into their jurisdictions. The variety of factors taken into account include:
national estimates of the overall number of cigarettes consumed each year
estimates of the quantity of cigarettes brought into the State legally by cross- border shoppers
surveys of empty (discarded) cigarette packs conducted at periodic intervals throughout the country
the volume of cigarettes on which excise duty is charged annually the number of cigarettes seized by customs.
It is evident that the only precise information that Revenue can confirm are the last two items listed above i.e. the volume of cigarettes on which duty has been collected and the actual quantity of cigarettes seized. The remaining factors require a significant level of speculation and extrapolation.
While the various estimates published in the media are at best speculative and are likely to include cigarettes purchased duty paid in other Member States brought into the State for personal consumption, the significant increase in the number of cigarettes seized in 2008 and the reduction in duty paid deliveries suggest that the overall level of smuggling may have increased.
While Revenue is not in a position to estimate the volume of smuggled cigarettes it very tentatively estimates that about 20% of cigarettes consumed in Ireland may be untaxed in Ireland. This however includes substantial quantities of legitimate personal imports from other EU Member States and should be treated with caution.
Turning to the question of resources available to Revenue's Customs Service to combat cigarette smuggling, enforcement staff are deployed at all key ports and airports in the State for the purposes of detection, interception and seizure of both contraband cigarettes and drugs. Staffing at these locations is subject to continuous review and staff numbers deployed at these locations are often augmented by additional staff from other areas particularly where specific operations are organised.
Maritime freight and passengers arriving from high-risk countries are targeted on the basis of risk analysis which is carried out by specialist intelligence teams. Customs relies heavily on intelligence from other Customs Administrations and receive valuable assistance and co-operation from the European Anti-Fraud Office, OLAF. There is also close co-operation with An Garda Síochána and multi-agency operations continue to be mounted where appropriate. Revenue also liaises with the Office of Tobacco Control. In addition, Revenue receives close co-operation and information from the legitimate tobacco manufacturers and has regular meetings with these companies along with the Irish Tobacco Manufacturers Advisory Committee (ITMAC). The international agreements signed by Ireland along with other Member States and the Commission with Philip Morris International and Japan Tobacco International are also utilised.
Staff carry out checks and searches at inland premises for contraband that may have evaded controls at the point of importation. Customs also utilise the latest scanning technology and tobacco detector dogs to assist them in detecting contraband. A Mobile Container Scanner was acquired two years ago and is normally based in Dublin where it is used to scan both accompanied and unaccompanied freight. The scanner is also deployed in the other major ports as the need arises. A procurement process to acquire a second Mobile Scanner is currently in train. Smaller baggage/parcel scanners are also located at the four major airports in Dublin, Shannon, Cork and Knock. Similar scanners are located at the ports of Rosslare and Ringaskiddy and at Portlaoise Mail Centre for screening mail. In summary, while overall staff numbers in Revenue are being reduced, in the context of the Government decision on expenditure controls, the number of staff engaged in front line enforcement work in tackling smuggling and protecting tax receipts is being maintained and the position is being kept under review.
Exchequer Borrowing.
Michael D'Arcy
Question:16 Deputy Michael D’Arcy asked the Minister for Finance if the EU has expressed a view on the maximum borrowing levels before penalty clauses might apply to Ireland under the stability pact. [12545/09]
Article 104 of the Treaty governs the operation of the excessive deficit procedure of the Stability and Growth Pact. On foot of the commission's recent report on Ireland's budgetary position the Commission has now adopted proposals for a Council recommendation to Ireland. This is part of the normal operation of the Pact whenever the General Government Deficit of a Member State exceeds the reference value of 3% of GDP as did that of Ireland and of a number of other Member States in 2008.
The proposed recommendation invites Ireland to reduce the deficit below the 3% of GDP reference limit by 2013. This is in line with the Government's budgetary strategy and we welcome the Commission's stance in this regard.
It is expected that the question of a Council recommendation to Ireland along with recommendations to other Member States in excessive deficit will be considered by the Ecofin Council next month. As is normal in these circumstances, I have been in regular contact with the Commission and with my European colleagues with regard to the position of the public finances.
Council recommendations are intended to support and encourage the Member State(s) concerned in its pursuit of necessary, if difficult, budgetary measures to reduce the deficit below 3% of GDP in a timeframe taking account of the economic background.
We are working with the Commission on this and other matters and as such the question of penalty clauses does not arise.
Fiscal Policy.
Joe Costello
Question:17 Deputy Joe Costello asked the Minister for Finance his views on reports (details supplied) with respect to the possibility of moving large amount of Ireland’s capital expenditure off balance sheet using a bonds for cash mechanism facilitated by the European Investment Bank; if this is expected to have an impact on the 2009 or 2010 budgetary equation and to what degree; and if he will make a statement on the matter. [12331/09]
My Department is considering a number of innovative financing proposals for public infrastructure which various bodies have submitted. I am not at liberty at this juncture to talk about any of the details of these proposals.
Key considerations for the State would be the costs of such proposals compared to either the cost of Exchequer-funded infrastructure or the cost of infrastructure delivered by PPP arrangements. Another key imperative would be value for money.
Question No. 18 answered with Question No. 15.
Economic Forecasts.
Bernard J. Durkan
Question:19 Deputy Bernard J. Durkan asked the Minister for Finance if he is satisfied that the procedures by which he predicts future economic trends are adequate in view of the fact that new and more serious economic issues seem to arise unexpectedly on a weekly basis; if he is further satisfied that the full extent of the current economic situation was foreseeable a year ago; if not, the reason for same; the steps he proposes to take to ensure that future economic forecasts reflect with some degree of accuracy the expected situation arising within a specific period and that, as a result, the necessary budgetary measures can be taken in sufficient time to avert the impact of uncertainty and lack of confidence which affects the economy here; and if he will make a statement on the matter. [12453/09]
I am satisfied with the procedures in place to conduct economic forecasting in my Department.
Even in a normal environment, it must be noted that short-term economic forecasting is not an exact science, given the many dynamic components which make up the economy. But we are not in a normal environment — conditions in the global economy are unfolding at a rapid pace, and this reflects the fall-out from the unprecedented financial market turbulence last September. As a result of this, the uncertainty associated with forecasting is heightened to an almost unprecedented level, not just in Ireland but in almost every country in the world.
This fact of how uncertain the global economic situation is can be seen by the frequency by which organisations such as the International Monetary Fund, OECD and EU Commission have reversed their forecasts for the global economy. The current global situation was not foreseen a year ago and it largely reflects a dramatic intensification of financial market difficulties since last September. The impact of this on the global economy is evolving.
My Department's approach, which is similar to others, is to identify the most likely outcome and then to identify the various risks — both domestic and international to this projection. The majority of current difficulties were identified as risks in both Budget 2009 and in the Addendum to the Stability Programme Update published in January.
Banking Sector Regulation.
Lucinda Creighton
Question:20 Deputy Lucinda Creighton asked the Minister for Finance if, in view of the revelations regarding irregular lodgements between Anglo Irish Bank and another bank (details supplied) in the accounting year from September 2007 to September 2008, there were similar lodgements between Anglo Irish Bank and that bank or any of their subsidiaries or associated companies in the previous accounting year; and if he will make a statement on the matter. [12454/09]
Lucinda Creighton
Question:30 Deputy Lucinda Creighton asked the Minister for Finance if, in view of the revelations regarding irregular lodgements between Anglo Irish Bank and a bank (details supplied) in the accounting year from September 2007 to September 2008, there were similar lodgements between Anglo Irish Bank and another bank or any of their subsidiaries or associated companies in the previous accounting year; and if he will make a statement on the matter. [12455/09]
I propose to take Questions Nos. 20 and 30 together.
The transactions to which the Deputy refers, between Anglo and IL&P, are currently under investigation and I can not comment on those. However, I understand that these were exceptional due to the materiality of the transactions and the involvement of a non-bank subsidiary. I am not aware of any similar such transactions between Anglo Irish Bank and IL&P.
I am aware that there are ongoing financial transactions between Anglo Irish Bank and other financial institutions, in normal trade. Such transactions include transactions between Anglo and the bank referred to, in Question 12455/09, during 2006 and 2007. I am assured by the Financial Regulator the transactions with the bank are not similar to the IL&P transactions on the grounds of the materiality level of the transactions and the fact that there was no involvement of a non-bank subsidiary.
National Pensions Reserve Fund.
Willie Penrose
Question:21 Deputy Willie Penrose asked the Minister for Finance if he has instructed the National Treasury Management Agency to make a contingency plan for the liquidation at short notice of the National Pensions Reserve Fund; if his attention has been drawn to such contingency planning or exit strategy at the NTMA in respect of the NPRF; and if he will make a statement on the matter. [12302/09]
The National Pensions Reserve Fund was established on 2 April 2001 under the National Pensions Reserve Fund Act 2000 with the objective of meeting as much as possible of the cost to the Exchequer of social welfare pensions and public service pensions to be paid from the year 2025 until at least 2055.
I have no plans to liquidate the Fund. The Government announced on 11 February 2009 that it had agreed the recapitalisation terms to be offered to Allied Irish Bank and Bank of Ireland, under which the Government would provide €3.5 billion in Core Tier 1 capital for each bank through the purchase of preference shares. The announcement stated that the recapitalisation is to be funded from the National Pensions Reserve Fund, with €4 billion being provided from the Fund's current resources and €3 billion by frontloading the Exchequer contributions to the Fund for 2009 and 2010. These investments will remain part of the Fund and the return earned on them will accrue to the Fund. As the Deputy will be aware, the recently-enacted Investment of the National Pensions Reserve Fund and Miscellaneous Provisions Act 2009 provides for the necessary amendments to the National Pensions Reserve Fund Act 2000 to enable this proposal to be implemented.
Exchequer Borrowing.
Pat Rabbitte
Question:22 Deputy Pat Rabbitte asked the Minister for Finance the expected cost of funding the national debt in 2009; and if he will make a statement on the matter. [12327/09]
The Exchequer Borrowing Requirement published in the Addendum to the Irish Stability Programme Update in January was forecast at €18 billion. Based on that amount, the cost of funding the national debt in 2009 was forecast at €4.5 billion.
The Government is currently considering the overall deficit position for 2009. In the context of the Supplementary Budget the planned borrowing requirement and the associated debt servicing costs for 2009 will be finalised and published on 7 April.
Banking Sector Regulation.
Bernard Allen
Question:23 Deputy Bernard Allen asked the Minister for Finance if he has assessed options to isolate impaired loans within banks in order that a good bank could be put in a position to resume lending with a clear balance sheet and new capital. [12517/09]
The Government has indicated that it is committed to ensuring the stability of the Irish financial system and protecting systemically relevant institutions. In this regard and as the Deputy will be aware, the Government is reviewing proposals for dealing with the risks associated with certain assets in order to strengthen relevant institutions and ensure the flow of credit to the real economy. I have asked Dr. Peter Bacon and the National Treasury Management Agency to report to me on this matter.
I have seen the initial report prepared by Dr. Peter Bacon for the NTMA. The proposals contained in the report will inform the Government's ongoing considerations, involving the Financial Regulator, Central Bank, the NTMA and our legal and financial advisers.
Frank Feighan
Question:24 Deputy Frank Feighan asked the Minister for Finance if he plans to make institutional changes in the arrangements for financial regulation; if he will publish an assessment of issues in advance of presenting proposals to Government; and if he will present the heads of any legislative Bill to the committees of the Houses of the Oireachtas which are investigating regulatory failure for early consideration of reform proposals. [12558/09]
Mary Upton
Question:65 Deputy Mary Upton asked the Minister for Finance his plans for the establishment of a banking commission here; if he has submitted these plans to the Cabinet for consideration; if new legislation will be required in order to establish such a commission; when he will introduce such legislation; and if he will make a statement on the matter. [12325/09]
I propose to take Questions Nos. 24 and 65 together.
I am bringing proposals before the Government to introduce new structures for banking regulation that will provide for the integration of Central Bank responsibilities with regulatory and supervisory functions, new standards of corporate governance and a new approach to enhance consumer protection. These changes are designed to restore Ireland's reputation and are consistent with the emerging international agenda for reform in the financial services sector. The structural changes and a substantial increase in regulatory capacity will lead to a more effective and efficient financial services regulatory system which will be aligned to the best international standards.
There is growing and extensive international literature on the causes of the financial crisis and identification of issues that need to be addressed on the supervisory front, to which I do not propose to add. I particularly welcome the report of the de Larosière Group, prepared at the request of the President of the European Commission and published on 25 February 2009. The De Larosière report provides a thorough analysis of the origins of the current financial crisis and, while acknowledging there is room for debate on the relative importance to be assigned to regulation in relation to the crisis, nonetheless sets out clear recommendations for reform of financial services regulation and supervision, which I welcome. The proposals I am bringing to Government are fully consistent with its central proposal for action at national level to strengthen the link between macroeconomic surveillance and macro prudential supervision.
Financial Services Regulation.
Brian O'Shea
Question:25 Deputy Brian O’Shea asked the Minister for Finance his views on rising a loan and investment losses in the credit union sector and that some credit unions could be on the verge of insolvency or may not have sufficient liquid assets to meet their financial commitments to members; and if he will make a statement on the matter. [12310/09]
As Minister for Finance, my role is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. The Registrar of Credit Unions is responsible for administering the system of regulation and supervision of credit unions provided under the Credit Union Act 1997, with a view to the protection by each credit union of the funds of its members and the maintenance of the financial stability of credit unions generally.
As the Deputies will recognise, the current serious difficulties in the financial sector and the accompanying economic downturn is affecting all financial institutions, including credit unions. On account of the reduced availability of credit in the banking system credit unions are now experiencing an increase in demand from their members for loans. There has also been some increase in bad and doubtful debts and, as is the case across the whole of the financial sector, there have been losses on credit union investments. It is not surprising that this combination of trends has led to a situation where credit unions generally have reported a decline in profits for 2008.
I am aware of recent media reports regarding difficulties with which the Registrar of Credit Unions is dealing in a small minority of credit unions. Following the Government's decision last September on the extension and increase in protection available under the Deposit Guarantee Scheme, all credit union savers can be reassured that their deposits and shares to the total maximum value of €100,000 are safe and secure. The credit union movement as a whole is in a relatively strong financial position with solid liquidity and reserves. The Registrar of Credit Unions has highlighted that, of the 419 credit unions registered in the Republic, only a handful are affected by these difficulties. The Registrar is continuing to work closely with the boards of those credit unions that are encountering problems. Very close oversight, monitoring and controls over these credit unions by the Registrar of Credit Unions are intended to assist them in addressing current issues and to ensure their long-term stability and sustainability.
In addition, it should be noted that the Irish League of Credit Unions maintains a savings protection fund in excess of €105 million which is available to help stabilise the position of any credit union that encounters problems. The Department of Finance also is actively considering proposals in consultation with the representative bodies for credit unions for a central liquidity fund using the surplus liquidity in the credit union movement as a whole to support credit unions that may experience any temporary difficulties.
The Registrar of Credit Unions is of the view, and I am in full agreement with him on this point, that there is no reason credit unions cannot survive and prosper in the present financial environment. He has advised credit unions that the focus of day-to-day management within credit unions must be to ensure that adequate liquid resources are always available for operational purposes and that surplus funds should be held in liquid form. Credit committees in credit unions should be given clear limits on the total funds available for the granting of loans, bearing in mind the availability of liquid resources. Easy access to liquid funds must be a priority. Lending criteria must be based on carefully researched factors and on conservative estimates of the ability and commitment of the potential borrower to repay a loan.
The Registrar of Credit Unions is responsible for the regulation and supervision of credit unions using the powers available under the Credit Union Act 1997. This rules-based legislation provides extensive powers of direction to the Registrar to ensure the financial soundness and safety of credit unions and to protect credit union savers. The Registrar can also issue regulatory direction and prohibition orders to a credit union in relation to a broad range of issues including, investments, raising of funds, loans, assets and liabilities ratios and the composition of their assets and liabilities. He has extensive powers of inspection and investigation of credit unions as well as broad supervisory powers, for example, to appoint, suspend or remove a person as a director of a credit union or to remove auditors. A number of offences are also provided for in the Act.
The extensive powers currently available to the Registrar under the Act are important in ensuring that the regulatory system is robust and effective and in particular safeguards members' savings. The rules-based approach to regulation embodied in the Credit Union Act has clearly served the credit union movement well, as is demonstrated by small minority of credit unions which the Registrar is currently monitoring closely in the current environment.
Small Business Sector.
Michael D. Higgins
Question:26 Deputy Michael D. Higgins asked the Minister for Finance the position regarding the funding difficulties facing Irish small and medium enterprises; the way these difficulties are evolving; the steps he is taking to ease them; and if he will make a statement on the matter. [12330/09]
As part of the recapitalisation package announced on 11 February, Allied Irish Bank and Bank of Ireland reconfirmed their December commitment to increase lending capacity to small and medium enterprises (SMEs) by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. If the mortgage lending is not taken up, then the extra capacity will be available to SMEs. AIB and Bank of Ireland have also committed to public campaigns to actively promote small business lending at competitive rates with increased transparency on the criteria to be met. Compliance with this commitment will be monitored by the Financial Regulator. The banks will make quarterly reports, with the first report to end March 2009 to be submitted by end April 2009.
Government Departments and State agencies have engaged with banks and business representatives in a variety of settings on issues surrounding the flow of credit for business. A formal structure for those contacts on an ongoing basis will be finalised shortly. An independent review of credit availability, funded by the banks but managed jointly by the banks, Government and business representatives, is also under way.
A Code of Conduct for Business Lending to Small and Medium Enterprises was published by the Financial Regulator on 13 February and took effect on 13 March. This code will apply to all regulated banks and building societies and will facilitate access to credit, promote fairness and transparency and ensure that banks will assist borrowers in meeting their obligations, or otherwise deal with an arrears situation in an orderly and appropriate manner. The business lending code includes a requirement for banks to offer their business customers annual review meetings, to inform customers of the basis for decisions made and to have written procedures for the proper handling of complaints. Where a customer gets into difficulty the banks will give the customer reasonable time and seek to agree an approach to resolve problems and to provide appropriate advice. This is a statutory code and banks will be required to demonstrate compliance.
Furthermore, a €100 million environmental and clean energy innovation fund has been established by each of the recapitalised banks. A quarterly report to the Financial Regulator of the loans made and the purposes for which they have been made will be required. The banks have also agreed to each provide €15 million to a new seed capital fund with Enterprise Ireland. The banks funding will be matched as appropriate by funding under Enterprise Ireland's Seed and Venture Capital Programme and/or by funding from other national or international investors. It is expected that much of these funds will be utilised by SMEs.
Tax Code.
Simon Coveney
Question:27 Deputy Simon Coveney asked the Minister for Finance if he is proposing to tax the sending and receiving of text messages; and if he will make a statement on the matter. [10401/09]
As the Deputy will be aware, it is not customary for the Minister for Finance to comment on possible tax and expenditure changes in advance of the budget.
Flood Relief.
Denis Naughten
Question:28 Deputy Denis Naughten asked the Minister for Finance the steps which he is taking to address the summer flooding in the Shannon callows; and if he will make a statement on the matter. [12456/09]
I visited the Shannon Callows last year and met with those affected by the flooding. I am conscious of the very serious impact on both farming and the environment in the area. Due to exceptionally heavy rainfall, the problem in 2008 was more severe than the normal summer flooding in the Callows. The extremely flat gradient of the river, together with the environmentally protected status of the location, makes it very difficult to devise a cost-effective solution.
The Office of Public Works carried out some clearance of vegetation in the area, which, although not sufficient to prevent the flooding last year, is generally acknowledged to have improved the situation. This work was carried out with the agreement of the National Parks and Wildlife Service and in consultation with other stakeholders.
The Irish Farmers Association requested that dredging be undertaken to remove accumulated silt, which they believed was reducing the capacity of the channel through the "New Cut". The Office of Public Works, having carefully studied the matter, was not convinced that the proposed silt removal would yield any further substantial relief of summer flooding in the Shannon Callows. It was, nevertheless, in recognition of the conviction of landowners that dredging would be effective, in light of the hardship, which the summer flooding causes, and in the absence of any better short-term solution prepared, subject to resolution of significant environmental issues, decided to undertake a limited amount of silt removal as a pilot scheme to demonstrate the efficacy or otherwise of the measure. It has not proved possible to date to resolve the environmental concerns and I regret that, in the light of the current budgetary constraints, it is no longer possible to justify undertaking these further works where the economic benefit cannot be clearly demonstrated.
In the circumstances, the Office of Public Works has no plans for further works in the immediate future. OPW will continue to monitor the situation and will be willing to consider any works, which can be justified economically and environmentally. The preparation of a Catchment Flood Risk Management Plan for the Shannon, which I expect will commence within the next 12 months, will build on previous reports and may present an opportunity to examine the problem on a comprehensive basis in the whole catchment context.
Financial Institutions Support Scheme.
Jack Wall
Question:29 Deputy Jack Wall asked the Minister for Finance if he will extend or replace the bank guarantee scheme upon expiry at end September 2010; his views on whether it is important to signal these intentions to the market as early as possible and that continued uncertainty in this regard is making, and will continue to make, it increasingly difficult for the covered institutions to raise debt with a term extending beyond September 2010; and if he will make a statement on the matter. [12315/09]
The Government acted decisively in September 2008 to guarantee, until 30 September 2010, the liabilities of relevant institutions in order to ensure banks could maintain normal liquidity position in interbank lending and debt markets. The guarantee has ensured Irish banks can continue to do their business and that the general public and businesses have been able to deposit with financial institutions in confidence.
The Government is committed to bringing forward proposals, if the need arises, to secure the position of our financial system. In the context of the six-month review of the guarantee scheme to be completed by mid-April 2009, the Government will examine how the scheme could be revised, subject to European Commission approval and consistent with EU state aid requirements, to achieve a reduction in risk overall, including by supporting longer-term bond issuance by the covered institutions.
Question No. 30 answered with Question No. 20.
Economic Forecasts.
Ruairí Quinn
Question:31 Deputy Ruairí Quinn asked the Minister for Finance his views on recent economic forecasts (details supplied) to the effect that unemployment could reach 16% by end of 2010, that house prices could undergo a 40% peak-to-trough decline and that national income is expected to decline by some 8% in 2009 and a further 3.5% in 2020; and if he will make a statement on the matter. [12314/09]
I understand the Deputy is referring to a recent economic forecast produced by Ulster Bank in which they anticipate a very large contraction in growth with unemployment rising to the levels mentioned in the question.
I would point out that there is a wide range of economic forecasts produced by a variety of financial institutions regarding the likely outcome for this year. In this regard, the market consensus at end-February was for GDP to contract by 4½% this year and by 1¾% next year. The market is forecasting unemployment to reach 13½% by the end of next year. The consensus is also for house prices to decline by an average of 10% this year and by 5% next year.
My Department will publish revised economic growth and labour market forecasts in the supplementary budget next month. Irrespective of what the forecasts are, it is clear that a large fall in economic activity is in prospect and that unemployment is going to rise substantially. Figures published this morning by the Central Statistics Office give an indication as to the scale of the difficulties.
Job Creation.
Richard Bruton
Question:32 Deputy Richard Bruton asked the Minister for Finance if he has assessed the make up of uncommitted capital spending in 2009 and the impact on jobs in the construction sector if this spending was postponed. [12526/09]
Information is not collated centrally on a routine basis on the number of direct and indirect jobs that would be created as a result of Exchequer capital investment.
However, my Department has recently completed an exercise on the labour intensity of infrastructure investment more broadly. This exercise found that, with a few exceptions, the labour intensity of capital projects falls within a range of 8-12 direct jobs created per €1 million expenditure. It also found that "minor" works tend to be more labour intensive in terms of direct jobs created than major new build projects. Both of these findings would be broadly supported by the academic studies that were consulted as part of the exercise conducted by my Department.
Of course, as well as taking account of the impact on employment, any decisions in relation to capital investment will also consider the extent to which that investment enhances the productive capacity of the economy and generates economic returns over the longer term.
The Government recently announced its intention to examine all current and capital expenditure as part of its decision to introduce further measures to stabilise the public finances. All decisions on funding will be taken in the course of these deliberations and will be announced on 7 April.
Fiscal Policy.
Brian O'Shea
Question:33 Deputy Brian O’Shea asked the Minister for Finance the quantum of Exchequer savings, through both increased tax revenue and reduced expenditure, he is seeking in the Budget of 7 April 2009; his views on whether it is realistic to target a general Government deficit of 9.5 % for 2009; and if he will make a statement on the matter. [12307/09]
The Supplementary Budget is to be presented to the Dáil on 7 April. The Government has already taken significant action to restore stability to the public finances and the Supplementary Budget will continue this process.
In relation to the details of what will be presented in the Supplementary Budget, it is not the usual practice to speculate in advance on the content of any budget and I do not propose to deviate from this practice now. However, all options are on the table, including action on both current and capital expenditure, as well as revenue raising measures.
Banking Sector Investigations.
Joe Costello
Question:34 Deputy Joe Costello asked the Minister for Finance the position regarding the investigation reported to be being carried out by the Financial Regulator into irregular trading activities at a company (details supplied); and if he will make a statement on the matter. [12332/09]
I am informed by the Financial Regulator that Merrill Lynch International Bank Limited (an Irish licensed credit institution) advised it on 18 February 2009 of matters in relation to the mispricing of trades in their London branch. Authorised officers of the Financial Regulator attended on site in the London branch in the days following this contact.
The Financial Regulator has also informed me that Merrill Lynch/Bank of America Corporation (Bank of America is Merrill's parent company) have employed independent external expertise to investigate the circumstances in conjunction with Bank of America's corporate audit and have agreed the scope of this investigation with the Financial Regulator and the UK Financial Services Authority. The Financial Regulator is also liaising with Bank of America/Merrill's parent US regulators on this matter. The Financial Regulator is receiving daily updates on the progress of this investigation. While this investigation continues, the Financial Regulator is not in a position to comment further on the matter.
Public Procurement Policy.
Kieran O'Donnell
Question:35 Deputy Kieran O’Donnell asked the Minister for Finance if he plans to extend the cut in the levels of professional fees to other areas of public procurement. [12587/09]
I would expect to see the Government's initiative reflected in better public procurement prices especially given the more competitive market environment and that the savings desired will be achieved in this way.
Tax Code.
Jan O'Sullivan
Question:36 Deputy Jan O’Sullivan asked the Minister for Finance the proposals or options under consideration by his Department for the taxing of telephone and Internet betting; and if he will make a statement on the matter. [12311/09]
As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. One obvious option in this regard is to include bets placed online or over the telephone with companies outside the State. However, it is clear that there are very serious legal difficulties surrounding this option which my officials are exploring on an ongoing basis.
Foreign Direct Investment.
David Stanton
Question:37 Deputy David Stanton asked the Minister for Finance his latest assessment of tax changes in the USA which might adversely affect Irish interests; and the initiatives he has taken to try to pre-empt such moves; and if he will make a statement on the matter. [12603/09]
The new US Administration has not yet given any real indication of its main focus in terms of international taxation. That said there has been a lot of speculation about potential changes to the US system of deferral whereby multinational corporations can defer paying US taxes on the profits of their subsidiaries overseas until they return them to the US.
I want to assure the Deputy that the Minister for Foreign Affairs, through the Embassy in Washington together with my own Department and the IDA work in close collaboration in seeking to address any policy proposals including those in relation to taxation which could affect foreign direct investment in Ireland. Issues that may have implications for Ireland are subject to focused discussion with US policymakers within the overall framework of a shared commitment to promoting the consolidation and growth of our economic relationship.
The recent Saint Patrick's Day meetings in Washington afforded us further opportunities to put forward our case in a considered and informed manner.
Financial Services Regulation.
Bernard Allen
Question:38 Deputy Bernard Allen asked the Minister for Finance if he has met the executives of building societies (details supplied) to hear their proposals for recapitalisation, for handling of liquidity and for impaired loans; and if he will make a statement on the matter. [12518/09]
Since the Government's guarantee Scheme was announced I have met on numerous occasions with representatives of all the covered institutions. The questions of capital, liquidity and loan impairment have been addressed at these meetings.
The Financial Regulator also enforces specific liquidity regulatory requirements and the issue of liquidity is a matter in the first instance for the Financial Regulator and the Central Bank. However, given the turmoil in financial markets in recent times, my officials are updated by the Financial Regulator and Central Bank regularly.
As the Deputy will be aware, the Government is reviewing proposals for dealing with the risks associated with certain assets including assets in the institutions concerned. I have asked Dr. Peter Bacon and the National Treasury Management Agency to report to me on this matter.
I have seen the initial report prepared by Dr. Peter Bacon for the NTMA. The report will inform the Government's ongoing considerations, involving the Financial Regulator, Central Bank, the NTMA and our legal and financial advisers.
Kathleen Lynch
Question:39 Deputy Kathleen Lynch asked the Minister for Finance the models of bad asset support scheme under consideration by his Department with respect to reinforcing the balance sheets of credit institutions supported by the bank guarantee; the parameters under which these models are being considered; the advantages and disadvantages of these models in the Irish context; when he will make an announcement in respect of such a scheme; the way he proposes to fund it; and if he will make a statement on the matter. [12300/09]
The Government is conscious that in current market circumstances there is a need to bring greater certainty and transparency to the operations of systemically important financial institutions, in particular in relation to specific asset classes currently perceived as carrying a higher than average risk.
In this context, the Government is examining proposals for the management and reduction of risks within financial institutions with respect to these specific exposures, having regard to international developments. As part of this work I have asked Dr. Peter Bacon and the National Treasury Management Agency to report to me on the matter. I have seen the report prepared by Dr. Bacon for the NTMA. The report will inform the Government's ongoing considerations, along with ongoing work at EU and European Central Bank level. I will be bringing forward proposals in this area as a matter of priority.
Tax Yield.
James Bannon
Question:40 Deputy James Bannon asked the Minister for Finance his estimate of the value of tax receipts on newly built property not yet sold which would accrue to the Exchequer if this property was sold, distinguishing the number of unsold properties and the average tax revenue that would be released by their sale. [12520/09]
The Department of Finance does not have relevant statistics on which to base an assessment of the value of tax receipts on newly built property not yet sold which would accrue to the Exchequer if this property is sold. I have also been informed by the Revenue Commissioners that they have no information on which to base an estimate such as this. In these circumstances it is therefore not possible to estimate the potential yield from this request.
National Lottery Funding.
Denis Naughten
Question:41 Deputy Denis Naughten asked the Minister for Finance the steps he is taking to secure funding from the national lottery in respect of sports projects; and if he will make a statement on the matter. [8412/09]
The position in relation to National Lottery funding is that receipts from the sale of National Lottery tickets are deposited in the National Lottery Fund in the Central Bank. A portion of these funds is transferred by my Department into the Exchequer over the course of each year on the basis of the projected surplus for that year. The monies transferred into the Exchequer are entered as non-tax revenue and, as such, form part of the general pool out of which expenditure is financed.
Since 2005, the total allocation for subheads which had formerly been funded entirely from the proceeds of the National Lottery has exceeded the funds available from the National Lottery. The total amount of funding is determined in the Estimates process, and is paid out of the general pool of revenue of which National Lottery proceeds form part. The annual allocation for sports projects is therefore decided in the context of the normal Estimates process.
John O'Mahony
Question:42 Deputy John O’Mahony asked the Minister for Finance the overall national lottery funding in 2008 which was allocated to sport; the percentage given towards the sports capital programme; and if he will make a statement on the matter. [8487/09]
John O'Mahony
Question:70 Deputy John O’Mahony asked the Minister for Finance the percentage of the proceeds of the national lottery which will be awarded to fund sport here in 2009; the way this compares with 2007 and 2008; and if he will make a statement on the matter. [8498/09]
I propose to take Questions Nos. 42 and 70 together.
Since 2005, the total allocation for subheads which had formerly been funded entirely from the proceeds of the National Lottery has exceeded the funds available from the National Lottery. The total amount of funding is determined in the Estimates process, and is paid out of the general pool of revenue of which National Lottery proceeds form part. Subheads that, prior to 2005, were exclusively funded by National Lottery funds are now funded by a combination of National Lottery and Exchequer funding. It is not, therefore, possible to indicate the percentage of National Lottery funding which was included in the allocations provided in the subheads relating to sport which are part-funded by the National Lottery in the Vote for the Department of Arts, Sport and Tourism.
Funds from the National Lottery as a percentage of the total allocation for all subheads which are part-funded by the proceeds of the National Lottery amounted to 52% in 2007 and 57% in 2008. As the Revised Estimates for Public Services 2009 has not yet been finalised, corresponding figures for 2009 are not yet available.
Financial Institutions Remuneration.
Joanna Tuffy
Question:43 Deputy Joanna Tuffy asked the Minister for Finance his views on whether the payment of significant bonuses, contractual or otherwise, to senior bank executives at institutions covered by the bank guarantee with respect to the financial year 2008 in which the guarantee was granted is appropriate; the steps he will be taking to ensure that no such inappropriate payments are made; if he will take steps within his remit to ensure the replacement of such in appropriate payments to the relevant covered institution; and if he will make a statement on the matter. [12323/09]
The Deputy will be aware from the details in the recently published Covered Institution Remuneration Oversight Committee (CIROC) report that with the exception of the Irish Nationwide Building Society (INBS) where the CEO was paid a pre-arranged incentive bonus of €1,000,000 in relation to 2008, no bonuses have been or will be paid to chief executives and senior executive management teams in relation to performance in 2008/2009.
It is my view that recent detailed disclosures in relation to the remuneration of the CEO of the INBS require investigation. I wrote to the Acting Chairman of the Board on 12th March stating that I considered the payment of the bonus to be potentially a breach of the guarantee scheme and seeking immediate reply as to what the board intended to do. While the reply to that letter indicated that the payment concerned was contractually committed before the Government guarantee I have asked that the two directors appointed by the board nominated by me should review all of these issues and that I would receive a report within one month. In relation to the board at INBS I have requested the board to brief me next week on their plans for the Society, including the review of management and board personnel.
Price Inflation.
Mary Upton
Question:44 Deputy Mary Upton asked the Minister for Finance if he will estimate the average CPI and HICP measures for price volatility in 2009; and if he will make a statement on the matter. [12326/09]
Based on the latest information available at the end of last year my Department set out its expectation that the Consumer Price Index (CPI) would fall this year by -1.0% but that Harmonised Index of Consumer Prices (HICP) inflation would be slightly positive, at ½% for 2009 as a whole. These forecasts were contained in the Addendum to the Stability Programme Update published on 9th January this year.
Since then, inflation data for December, January and February have been released by the Central Statistics Office (CSO). In addition the ECB has cut interest rates by a full percentage point significantly impacting on the CPI index, while falls in regulated energy prices have also been announced. Furthermore, the weakening economic climate has led to a fall-off in price pressures across a range of sectors. My Department now expects CPI inflation to be lower then previously expected in 2009 and could average around -3¾% for the year as a whole. HICP inflation is expected to be negative too, averaging around -1½% for 2009 as a whole.
Revised forecasts for inflation this year will be published with the Supplementary Budget on 7th April.
Financial Services Regulation.
Eamon Gilmore
Question:45 Deputy Eamon Gilmore asked the Minister for Finance if has begun the search for an individual or group of individuals to head his proposed Irish banking commission; and if he will make a statement on the matter. [12308/09]
I am bringing proposals before the Government to implement major reform of the structure and organisation of financial regulation in Ireland. The changes will focus on restoring confidence in the Irish financial regulatory system and the strengthening of co-ordination of the central banking and financial regulation functions. It is a priority for the Government to ensure that the membership of the new structure will be highly authoritative, expert and experienced in the key areas required for it to effectively discharge its responsibilities.
Banking Sector Regulation.
Bernard J. Durkan
Question:46 Deputy Bernard J. Durkan asked the Minister for Finance when it is expected that traditional banking practices will be re-established; if this is expected to encompass traditional lending criteria in respect of mortgages or other uses; if it is intended to take steps to ensure that greater emphasis is placed on lending for employment creation purposes; if his attention has been drawn to the fact that the banking system does not appear to meet the ongoing needs of trade and commerce in the current climate; if it is intended to issue directives to the banking sector with a view to achieving a particular focus on the productive areas of the economy; and if he will make a statement on the matter. [12452/09]
The primary objective of the Government is to secure and maintain the financial and economic position of the State. Significant steps have been taken to achieve that objective including the Bank Guarantee Scheme and the recapitalisation of Ireland's two main banks. An essential element of the recapitalisation scheme, which I expect to be implemented in the very near future, anticipates the banks involved increasing the level of credit available throughout the economy. As part of the recapitalisation measures, the recapitalised banks have committed to increase lending capacity to small and medium enterprises (SMEs) by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. If the mortgage lending is not taken up, then the extra capacity will be available to SMEs. Compliance with this commitment will be monitored by the Financial Regulator. An independent review of credit availability, funded by the banks but managed jointly by the banks, Government and business representatives is also underway and will be completed shortly. Amongst the issues covered by this review will be changes in bank lending, repayment terms and a comparison with customer experiences prior to the onset of the financial crisis. I am satisfied that this review, along with the quarterly reports from the recapitalised institutions, will give a clear picture regarding the flow of credit in the Irish economy.
The Financial Regulator has also worked closely with my Department to introduce two new codes. The code of conduct for business lending applies to all regulated banks and building societies and will facilitate access to credit, promote fairness and transparency and ensure that banks will assist borrowers in meeting their obligations, or otherwise deal with an arrears situation in an orderly and appropriate manner. The second code covers mortgage arrears and is designed to ensure that mortgage lenders take action to assist householders who are in arrears and will apply to all mortgage lenders, including banks, building societies and retail credit firms.
The question of issuing specific directives to the banks does not arise at this point in time. I fully expect that the banks concerned will meet their commitments under the recapitalisation scheme to increase the level of credit available nationally. Compliance with those commitments will be monitored by the Financial Regulator, the independent review of credit availability referred to above and by the State's appointees on the recapitalised banks.
Richard Bruton
Question:47 Deputy Richard Bruton asked the Minister for Finance if he has data available to him on the trends in business credit since the bank guarantee in September 2008 and on the work of the clearing group on blocked credit; and if he will make a statement on the matter. [12525/09]
Government Departments and State agencies have engaged with banks and business representatives in a variety of settings on issues surrounding the flow of credit for business. A formal structure for those contacts on an ongoing basis will be finalised shortly.
An independent review of credit availability, funded by the banks but managed jointly by the banks, Government and business representatives is also underway and will be completed shortly. Amongst the issues covered by this review will be changes in bank lending, repayment terms and a comparison with customer experiences prior to the onset of the financial crisis. I am satisfied that this review, along with the quarterly reports from the recapitalised institutions, will give a clear picture regarding the flow of credit in the Irish economy.
As part of the recapitalisation package announced on 11 February, Allied Irish Bank and Bank of Ireland reconfirmed their December commitment to increase lending capacity to small and medium enterprises (SMEs) by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. If the mortgage lending is not taken up, then the extra capacity will be available to SMEs. AIB and Bank of Ireland have also committed to public campaigns to actively promote small business lending at competitive rates with increased transparency on the criteria to be met. Compliance with this commitment will be monitored by the Financial Regulator. The banks will make quarterly reports, with the first report to end March 2009 to be submitted by end April 2009. Both institutions have met with officials from my Department to give details of the steps they are taking to implement these measures.
Financial Institutions Support Scheme.
James Bannon
Question:48 Deputy James Bannon asked the Minister for Finance the way he will manage the State role on the banks which are to be recapitalised. [12519/09]
As a general rule, the State's relationship with the banks following their proposed recapitalisation will be managed through two conduits. Firstly the NPRF Commission will hold the shares on the State's behalf and develop a shareholder/company relationship with the banks. Also arrangements will be put in place to monitor closely the commitments made by the banks in relation to the recapitalisation and to monitor the State's interests as a stakeholder.
Secondly, I will appoint 25% of the members of the Boards of these banks. Initially this will involve two extra Directors as there are already two Directors appointed from panels nominated by myself to each of the banks to be recapitalised.
In addition, I have other avenues of influence in relation to the banks, for example under the Government Guarantee Scheme and the associated legislation and deeds.
Price Inflation.
Ruairí Quinn
Question:49 Deputy Ruairí Quinn asked the Minister for Finance if he will table proposals to mitigate the potentially significant negative effects of deflation; and if he will make a statement on the matter. [12313/09]
Based on the latest information available at the end of last year my Department set out its expectation that the Consumer Price Index (CPI) would fall this year by -1.0% but that Harmonised Index of Consumer Prices (HICP) inflation would be slightly positive, at ½% for 2009 as a whole. These forecasts were contained in the Addendum to the Stability Programme Update published on 9th January this year.
Since then, inflation data for December, January and February have been released by the Central Statistics Office (CSO). In addition the ECB has cut interest rates by a full percentage point significantly impacting on the CPI index, while falls in regulated energy prices have also been announced. Furthermore, the weakening economic climate has led to a fall-off in price pressures across a range of sectors. My Department now expects CPI inflation to be lower then previously expected in 2009 and could average around -3¾% for the year as a whole. HICP inflation is expected to be negative too, averaging around -1½% for 2009 as a whole. My Department's forecasts for inflation will be published on April 7th with the Supplementary Budget.
While prices are currently falling and will on average do so this year, it is important to stress that this is not expected to continue. The reason we have entered a short period of declining prices is mainly due to large falls in mortgage interest rates as well as the fall-back in the sharp increases in energy and food prices last year. It is generally expected that both CPI and HICP inflation will be positive in 2010.
The current and prospective easing in inflation will have both positive and negative effects. It will lead to an increase in households' purchasing power, helping all but especially those on tighter budgets, and this is to be welcomed. In addition, in recent years price levels in Ireland have risen to some 20% above the rest of the euro area, which has damaged our international competitiveness. Inflation continuing below the euro area average should help us to regain some of the price competitiveness which we have lost in recent years.
That said, falling prices also means an increase in the real burden of debt so I would not like to see a prolonged period of declining prices. In the case of mortgage debt, the Government has put in place supports for households experiencing difficulties in meeting mortgage payments. For example, the Mortgage Interest Supplement provides assistance where the mortgage relates to the sole place of residence. In addition, the new mandatory Code of Conduct on Mortgage Arrears, incorporates a requirement for the lender to wait at least six months from the time arrears arise before taking legal action. In addition, the recapitalised banks have assured the Government that in the normal course they will make every effort to avoid repossessions, as indicated by the low level of repossessions by them to date.
Economic Forecasts.
Thomas P. Broughan
Question:50 Deputy Thomas P. Broughan asked the Minister for Finance when he will publish profiles of expected tax revenues and voted expenditure for 2009; the reason for the delay in their publication in 2009; and if he will make a statement on the matter. [12298/09]
In the context of the normal December Budget day decisions for both expenditure and taxation, monthly profiles of projected receipts and expenditure are generally published by my Department by the end of January every year. However this year, against a difficult and deteriorating economic background, it has proven necessary to revise the fiscal forecasts, initially in the context of the Addendum to the Stability Programme Update which was submitted to the European Commission on 9 January last and now in the context of the Supplementary Budget to be published on 7 April. Consequently, the publication of the monthly profiles has been delayed this year. I expect tax and expenditure profiles to be published by my Department shortly after the Supplementary Budget.
Departmental Agencies.
Pat Breen
Question:51 Deputy Pat Breen asked the Minister for Finance the number of staff who will be released as a result of the rationalisation of 30 State agencies announced in budget 2009; and if new legislation is needed to allow staff to be assigned to work outside of the agencies being merged. [12524/09]
In Budget 2009, I announced 30 rationalisation decisions that will reduce the number of State agencies by 41. The specific details with regard to reductions in numbers and the requirement for new legislation is a matter for the relevant Departments responsible for each of the rationalisation proposals. The general policy approach is to create efficiencies, including staffing efficiencies, through streamlining the delivery of public services, removing duplication of functions and promoting Departmental and Ministerial responsibility. The requirement for new legislation arises from the individual circumstances of the bodies, for example where the functions of statutory bodies are being changed or the body abolished. The assignment of staff to work outside of the agencies is in general a human resources/industrial relations issue and does not normally require new legislation.
Vehicle Registration System.
Seán Barrett
Question:52 Deputy Seán Barrett asked the Minister for Finance his views on the introduction of personalised vehicle registration plates alongside the existing system of vehicle registration as a means of generating extra revenue for the State and providing additional employment opportunities; and if he will make a statement on the matter. [10024/09]
The current vehicle registration plate numbering system in the State does not lend itself to the creation of a market for the purchase and transfer of personalised number plates. In order to create a successful market, the current system would need to be redesigned or augmented by a parallel plate numbering system.
The registration plate in place under the current system allows members of the public and car buyers to ascertain, at a glance, both the year and county of registration of a vehicle. It is seen as a simple and effective registration plate system which is indeed the envy of many European registration authorities, including the UK. A move to a more complicated plating system, using variations of letters and numbers, could create confusion without providing any real benefits.
A move to introduce a parallel system for personalised plates would also require inter-agency agreement, involving An Garda Síochána, the Department of the Environment, Heritage and Local Government, the Department of Transport and the Office of the Revenue Commissioners; and would necessitate legislative and administrative changes.
The small size of the Irish car market, the potential for confusion and increased tax evasion, as well as the costs of administering such a scheme, raise considerable doubts as to whether any real overall benefit would accrue to the State if a personalised vehicle registration system was introduced. These difficulties are compounded by potential additional problems in the management of the national fleet and the identification of vehicles in connection with road traffic accidents and offences.
Pension Provisions.
Emmet Stagg
Question:53 Deputy Emmet Stagg asked the Minister for Finance the net present value of the Exchequer’s commitment in respect of the retirement package, including payments already made as part of this package when relevant to the current governor of the Central Bank, the acting chief executive of the Financial Regulator and the previous chief executive of the Financial Regulator; and if he will make a statement on the matter. [12321/09]
The remuneration, including superannuation, of the Governor, the Chief Executive of the Financial Regulator and the staff of the Central Bank and Financial Services Authority of Ireland are not paid from the Exchequer but from the organisation's own resources. The annual costs of the Central Bank and Financial Services Authority of Ireland, including those relating to remuneration and superannuation, together with the costs of providing pension benefits in compliance with stated accounting rules, are set out in the organisation's annual reports.
Fiscal Policy.
Joanna Tuffy
Question:54 Deputy Joanna Tuffy asked the Minister for Finance the aggregate knock-on effect on economic growth and contraction he would expect as a result of deflating the economy, through Government revenue raising or expenditure reductions in the 7 April 2009 budget, by €1.5 billion, €2.5 billion, €3.5 billion, €4.5 billion and €5.5 billion over a nine-month period to end 2009; if he, his officials or external bodies at his or their request have; and if he will make a statement on the matter. [12324/09]
There are considerable uncertainties regarding the economic impact of any fiscal measures, given that it is unknown how economic agents will react to the various policy changes. In addition, the composition of the fiscal package would be important, as different policy measures would have different economic impacts.
Notwithstanding these uncertainties, the economic impact of fiscal measures can be estimated in broad terms.
A fiscal package designed to raise €4.5 billion in 2009 is the equivalent of about €6 billion in a full year and would amount to around 3½% of GDP for 2009 as a whole. Taking account of a number of factors such as the potential for significant ‘leakages' through imports and some impact on price rather than on the quantity of output it is estimated that GDP growth would be around 1½% lower than would otherwise be the case on foot of these measures. Broadly similar pro rata rates apply to the other amounts.
However, there is potential for considerable variation on the macroeconomic impact depending on the exact nature of any fiscal package. Furthermore, account of the potential for enhanced consumer and investor confidence and greater future certainty that such a package may have would also have to be considered.
Financial Institutions Support Scheme.
Sean Sherlock
Question:55 Deputy Seán Sherlock asked the Minister for Finance the steps he will be taking in order to stabilise the credit institutions covered by the bank guarantee scheme; and if he will make a statement on the matter. [12317/09]
The Government's approach to the unprecedented crisis in global financial markets has been structured and considered. The series of measures taken to ensure the stabilisation of the Irish financial system since last September evidences the proactive stance taken by the Government. In deciding policy approaches, the Government has taken advice and consulted with the Central Bank, the Financial Regulator, the National Treasury Management Agency and its legal and financial advisors.
The Deputy will be aware that following a drain on liquidity in the Irish banking system in 2008, the Government, through the Credit Institutions (Financial Support) Scheme 2008, guaranteed all the deposits, covered bonds, senior debt and dated subordinated debt (lower tier II) of seven Irish banking institutions (covered institutions). This very important initiative by the Government was designed to protect the Irish financial system and to remedy a serious disturbance in the economy caused by the turmoil in the international financial markets.
The Guarantee scheme (the scheme) has proved successful in safeguarding the stability of the Irish banking sector and in restoring its liquidity position in order to support its normal lending activities.
As I have emphasised on several occasions, the scheme imposes very strict conditions to ensure that balance sheet growth is measured and in accordance with prudent banking practice, that risk is properly measured and managed.
In addition to what is contained in the scheme, the Financial Regulator has instigated a series of regulatory measures to take account of the changed environment, including an increased focus on the management of credit and liquidity risks of the banks.
Among the actions the Financial Regulator is taking are the following:
the recruitment of an additional 20 senior supervisory staff with banking experience to be placed on-site in key banks to monitor developments;
requiring banks to set out new business plans focusing on the need to reduce their risk profile and how their models of banking are sustainable in the new environment; and
enhanced reporting obligations in relation to capital, asset quality and individual large loans to supplement daily liquidity reporting requirements.
As the Deputy is aware, in early January the Government nationalised Anglo Irish Bank. Anglo Irish Bank is a major financial institution whose viability is of systemic importance to Ireland. The Government has made clear that it will ensure its continued viability as a going concern.
In view of the continuing turmoil in global financial markets the Government decided on 11 February, on a comprehensive recapitalisation package for AIB and Bank of Ireland which will reinforce the stability of our financial system, increase confidence in the banking system here, and facilitate the banks involved in lending to the economy.
The Government is also in discussions with other covered institutions (Irish Life and Permanent, EBS and INBS) concerning their respective capital positions and is reviewing the guarantee scheme.
In the context of the six month review of the guarantee Scheme to be completed during April 2009 the Government will examine how the Scheme could be revised subject to European Commission approval and consistent with EU State aid requirements, in ways which include supporting longer-term bond issuance by the covered institutions. This would be in line with international and EU trends where the average term of State cover for bond issues extends beyond 2010.
Irish institutions have engaged in lending for land and property development which exposes them to specific risk at a time of falling property prices and difficult economic conditions. The Government will examine proposals for the management and reduction of risks within financial institutions with respect to these specific exposures, having regard to international developments. I will be carrying forward this work to produce proposals as a matter of priority.
Financial Services Regulation.
Ciaran Lynch
Question:56 Deputy Ciarán Lynch asked the Minister for Finance if he proposes to bring forward legislative proposals relating to the management of consumer debt; his views on whether the legislative framework is satisfactory in this regard; if, in particular, his Department has considered the implementation of UK models such as individual voluntary agreements or debt management plans; if new legislation would be required for the implementation of such models in an Irish context; and if he will make a statement on the matter. [12303/09]
As far as safeguarding the interests of individual borrowers is concerned, the function of Government is to provide an appropriate legislative framework for effective and efficient regulation of the financial services sector. Much progress has been made in this regard over recent years, through such measures as the establishment of the Financial Regulator and the Financial Services Ombudsman and the publication of the Financial Regulator Consumer Protection Code (CPC) in August 2006.
The CPC, which came into full effect from July 2007, represents a major step in promoting the interests of consumers in that it obligates the regulated entities that it covers to act in the customer's best interests, to seek appropriate information about the customer, to ensure that the products and services provided are suitable for the consumer, to treat their customers fairly and have adequate procedures in place to handle complaints. These obligations are additional to the statutory prior information and warnings required under the Consumer Credit Act, 1995.
The Financial Regulator has prioritised the provision of information for consumers about the potential risk of excessive debt and has also drawn attention to the need for consumers to choose the right type of loan for their needs. It has also developed a number of specific initiatives to help consumers make informed choices in terms of the financial products they choose, the amount of risk they take on and the cost of financial products.
General issues relating to the enforcement of debts are for other Ministers. I understand that as part of the Law Reform Commission's Third Programme of Law Reform, it will shortly look into the area of legislation concerning debt enforcement. Any conclusions arising from the Law Reform Commission's work will of course be carefully considered by the other Ministers.
Exchequer Borrowing.
Emmet Stagg
Question:57 Deputy Emmet Stagg asked the Minister for Finance the forecast Exchequer borrowing requirement for the years 2009, 2010, 2011 and 2012; the position regarding discussions he or his Department officials have had with the EU institutions with regard to the deficit procedure to which Ireland is subject; and if he will make a statement on the matter. [12322/09]
The latest published forecast for the Exchequer borrowing requirement (EBR) and the General Government Balance (GGB -the relevant measure for the Stability and Growth Pact), were set out in the Addendum to the Irish Stability Programme Update. This was submitted to the European Commission in January 2009 and the relevant details are as follows:
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
|
|
€m |
€m |
€m |
€m |
€m |
€m |
|
|
EBR |
-12,714 |
-17,980 |
-16,860 |
-13,769 |
-11,583 |
-8,081 |
|
GGB |
-11,796 |
-17,165 |
-16,271 |
-12,092 |
-9,443 |
-5,537 |
|
% GDP |
-6.3% |
-9.5% |
-9.0% |
-6.4% |
-4.8% |
-2.6% |
In the context of the supplementary budgetary measures to be announced on Tuesday, 7th April my Department will be publishing revised projections.
On foot of its report on Ireland's budgetary position last month, under Article 104 of the Treaty which governs the operation of the excessive deficit procedure of the Stability and Growth Pact, the Commission has now adopted proposals for a Council recommendation to Ireland. This is part of the normal operation of the Pact whenever the General Government Deficit of a Member State exceeds the reference value of 3% of GDP as did that of Ireland and of a number of other Member States in 2008.
The proposed recommendation invites Ireland to reduce the deficit below 3% of GDP by 2013. This is in line with the Government's budgetary strategy.
Following a meeting of the EU's Economic and Financial Committee on 26th and 27th March which is being is attended by officials of my Department, the proposed Council recommendation will be among those considered by the Ecofin Council next month. As is normal in these circumstances, I have been in regular contact with the Commission and with my European colleagues with regard to the position of the public finances.
Council recommendations are intended to support and encourage the Member State(s) concerned in its pursuit of necessary, if difficult, budgetary measures to reduce the deficit below 3% of GDP in a timeframe taking account of the economic background.
I look forward to the support of the Commission and Council for the overall budgetary strategy of restoring stability to the public finances, while taking steps also to maximise short-term economic activity and employment and improve competitiveness.
Financial Institutions Support Scheme.
Ciaran Lynch
Question:58 Deputy Ciarán Lynch asked the Minister for Finance his views on recent statements by the President of the European Investment Bank to the effect that giving State guarantees to the banking sector can have a significant impact on the cost of sovereign borrowing; his views on both of these models. [12304/09]
The National Treasury Management Agency has successfully issued two new bonds (totalling €10 billion) in 2009 and this week it launched the first of a series of auctions of long-term bonds. The auction was nearly three times oversubscribed. In common with other euro sovereign borrowers benchmarked against Germany, Ireland's cost of borrowing has increased. There are a range of factors that influence the cost of borrowing on the international market — the bank guarantee being one of them. However, it should be noted that Ireland's cost of borrowing has fallen recently from the levels recorded earlier in the year.
I am advised by the NTMA that notwithstanding the uncertain times we are in, they do not envisage any problems on the international markets this year in terms of raising funds.
Michael D. Higgins
Question:59 Deputy Michael D. Higgins asked the Minister for Finance if and when he will table further proposals with respect to the capitalisation and stabilisation of the credit institutions covered by the bank guarantee scheme; and if he will make a statement on the matter. [12329/09]
As the Deputy will be aware, the Government has announced detailed proposals for the recapitalisation of Allied Irish Bank and Bank of Ireland. As I have noted previously, the Government's approach to the recapitalisation of these institutions has been structured and considered and based on a detailed assessment of the institutions concerned. This included work undertaken for the Financial Regulator by PricewaterhouseCoopers and Jones Lang LaSalle. Following the completion of the Government's due diligence exercise, which is currently being finalised, the proposals will be put to EGMs of both banks over the coming weeks.
The Government is in ongoing discussions with the other covered institutions including with regard to their respective capital positions and in relation to the review of the guarantee scheme. The Government will be bringing forward proposals to strengthen these institutions as required.
As the Deputy will be aware, the Government is also examining how the guarantee Scheme could be revised, subject to European Commission approval and consistent with EU State aid requirements, to support longer-term bond issuance by the covered institutions. Moreover, in consultation with my advisers, I am examining proposals for dealing with risky assets on the balance sheets of relevant institutions.
Liz McManus
Question:60 Deputy Liz McManus asked the Minister for Finance when the fees charged to institutions under the bank guarantee scheme in respect of that guarantee are next to be reviewed; the stakeholders in this review and the process involved; if he will publish the formula used to generate this fee; if recent increases in Ireland’s long-term sovereign borrowing costs will be considered in the context of this review process; and if he will make a statement on the matter. [12305/09]
There is provision in Paragraph 22 of the Scheme that I may review the guarantee charging model every six months. I expect that the first of these reviews will be completed during April 2009. The review process will require advice from the Central Bank, Financial Regulator and the NTMA.
The thinking behind the Charging Model is set out in some detail in the Annexe to the Scheme. The charge is calculated by reference to the composition of the covered institution's average month-end covered liabilities during the preceding quarter. Each covered institution pays its share in accordance with its risk profile and the guarantee charging model, subject to the estimated cost to the Exchequer being fully recouped.
I acknowledge that Irish bond spreads have widened against the benchmark German bund over recent months. There are complex factors at play, many not specific to Ireland.
However, in regard to Ireland, the fiscal performance is and will continue to be a key issue. In this regard I have outlined at length the necessity to bring public spending and revenue into better balance.
Fiscal Policy.
Jan O'Sullivan
Question:61 Deputy Jan O’Sullivan asked the Minister for Finance his technical understanding of the term “economic depression”; his views on whether Ireland is on the verge of fulfilling or has already fulfilled these criteria; and if he will make a statement on the matter. [12312/09]
There is no universally accepted definition of the term depression, but my own view is that the experience of the 1930s in many countries is an accurate description of the term.
In Ireland after a very long period of sustained growth we are now experiencing a deep recession. As a result living standards will decline significantly and we will all have to adjust our expectations of what can be achieved. The figures published by the Central Statistics Office this morning provide an indication as to the scale of the downturn currently underway.
Notwithstanding the downward adjustment, the Deputy should note that economic activity and income levels in Ireland remain comparatively high by international and historical standards. Furthermore, we must remember that recessions end and that we must now prepare ourselves to be best able to take advantage of the global economic pick-up when it emerges.
Tax Code.
Joan Burton
Question:62 Deputy Joan Burton asked the Minister for Finance the position regarding the implementation of the car parking levy announced in budget 2009; and if he will make a statement on the matter. [12333/09]
Consultations between my Department and the Department of the Environment, Heritage and Local Government with regard to the implementation of the levy are well advanced and details of its introduction will be announced shortly.
As previously indicated, the levy will apply in the five urban areas of Dublin, Waterford, Cork, Limerick and Galway. Within these urban areas, regard will be had to factors such as,
1. the availability of public transport,
2. the level of congestion in the relevant parts of those cities, and
3. the relative value of the car parking spaces.
Accordingly, the relevant local authorities and the Department of Transport are also being consulted so as to ensure that the prime objectives of reducing traffic congestion and contributing to a cleaner environment are realised.
Banking Sector Regulation.
Joan Burton
Question:63 Deputy Joan Burton asked the Minister for Finance if, in view of the evolution in their respective share prices and the recent events impacting on the global financial sector, it may be necessary to review the decision to invest the €7 billion in preference shares (details supplied); and if he will make a statement on the matter. [12334/09]
As I have noted previously, the Government's approach to recapitalisation has been structured and considered and based on a detailed assessment of the institutions concerned.
The Financial Regulator engaged PricewaterhouseCoopers to examine the capital position of the institutions covered under the Guarantee Scheme. This examination included an assessment of the level of impairment of assets under various stress scenarios. A further assessment of the market values of land and development assets was carried out by Jones Lang LaSalle to complement this work. Following the completion of the Government's due diligence exercise, which is currently being finalised, the proposals will be put to EGMs of both banks over the coming weeks.
The recapitalisation of the institutions in question addresses both the expectations of international markets on the Irish bank's capital levels, and strengthens the ability of institutions to cope with impaired loans in conjunction existing reserves and retained profit from performing loans and other trading activities.
The share price of an institution reflects a broad market assessment of a business or sector and the objective of the recapitalisation is not to support the share price but to support the stability of the institution concerned. The current depressed share prices of banks internationally indicate an uncertainty over the future operation and earning potential of banks globally and this is no different for the institutions referred to by the Deputy. In this regard the Government has indicated that it is committed to ensuring the stability of the Irish financial system and protecting systemic institutions.
Pat Rabbitte
Question:64 Deputy Pat Rabbitte asked the Minister for Finance the recent discussions, negotiations or other activities undertaken by him or his officials with respect to the recapitalisation of banks (details supplied); if he will provide an estimate of the cost to the Exchequer of such recapitalisation; if it is his intention to fund such recapitalisation; if it is his intention to fund such recapitalisation by utilising assets held in the National Pensions Reserve Fund. [12328/09]
The Government is in discussions with the covered institutions referred to including with regards to their respective capital positions and in relation to the review of the guarantee scheme. The Government will bring forward proposals to strengthen these institutions if required. As previously announced, capital is available, through the National Pension Reserve Fund, or otherwise and subject to terms and conditions, as appropriate. Any possible capital requirement for these institutions would be substantially less than that for the two main banks.
Question No. 65 answered with Question No. 24.
Financial Institutions Remuneration.
Róisín Shortall
Question:66 Deputy Róisín Shortall asked the Minister for Finance if and when he will publish the report of the Covered Institution Remuneration Oversight Committee on bankers’ pay; and if he will make a statement on the matter. [12320/09]
The Report of the Covered Institutions Remuneration Committee (CIROC) was published by my Department on 13 March 2009.
The Government welcomed the recommendation by CIROC for reductions in the prevailing base salary, pension levels and bonuses for Chairs, Chief Executives and ordinary Board members in those financial institutions covered by the Bank Guarantee Scheme. As the Deputy is aware, I have written to those institutions seeking a salary cap of €500,000 or the amount recommended by CIROC, whichever is the lesser.
The CIROC Report was placed before the House on 13 March 2009 and is also available on my Department's website.
Banking Sector Investigations.
Willie Penrose
Question:67 Deputy Willie Penrose asked the Minister for Finance if he will publish the reports relating to banks (details supplied); and if he will make a statement on the matter. [12301/09]
The reports which the Deputy refers to were prepared on behalf of the Financial Regulator who has indicated that because of the commercially sensitive nature of the information contained in the reports, they will not be publishing or making the contents of the reports generally available.
As the Deputy is aware, extracts from a series of reports on Anglo Irish Bank prepared by Pricewaterhouse Coopers were released in view of the fact that Anglo Irish Bank is in public ownership and there was an important public interest in publishing the document.
The banks the Deputy refers to are not in public ownership. As the reports contain commercially sensitive information, it would not be appropriate for those reports to be published at this time.
Fiscal Policy.
Jack Wall
Question:68 Deputy Jack Wall asked the Minister for Finance the details of direct contacts, whether formally or informally, he or his officials have had with credit rating agencies over the past six months in respect of Irish sovereign debt; the details of briefings he or his officials have had on such meetings which have occurred between the Governor of the Central Bank or the chief executive of the National Treasury Management Agency; and if he will make a statement on the matter. [12316/09]
In the normal course of events, officials in my Department regularly brief and meet with representatives of international credit rating agencies in order to provide information on the Irish economy. As part of my function as Minister for Finance, I meet with a wide variety of organisations, including on occasion, credit ratings agencies. In the past six months I have only met with representatives of Standard and Poors on 18 February 2009 to discuss the budgetary and economic outlook for Ireland.
The rating agencies as a matter of course also meet with a wide variety of public and private sector organisations in Ireland, including the Central Bank and the NTMA, on a regular basis as part of their process of keeping themselves informed of developments in the Irish economy. In addition, National Treasury Management Agency officials regularly brief the rating agencies on various issues related to the public finances.
Billy Timmins
Question:69 Deputy Billy Timmins asked the Minister for Finance if he plans to publish policy options for expenditure savings put forward by Departments ahead of the emergency budget. [12522/09]
In line with normal budgetary practice, the Government will consider and decide upon expenditure policy options, and the decisions will be announced on Tuesday 7 April next.
Question No. 70 answered with Question No. 42.
Exchequer Borrowing.
Liz McManus
Question:71 Deputy Liz McManus asked the Minister for Finance his views on recent increases in the cost of raising sovereign debt; the extent to which he attributes this increased funding cost to the deteriorating Exchequer position; the extent to which he attributes it to the contingent liabilities arising from the bank guarantee; and if he will make a statement on the matter. [12306/09]
The National Treasury Management Agency has advised me that the main reasons for the increase in the forecast cost of servicing the national debt for 2009 are the increase in the estimate for the 2009 Exchequer Borrowing Requirement and the higher interest rates currently prevailing on Government bonds. The current elevated yields on Irish Government bonds reflect both global factors which are affecting all euro sovereign borrowers benchmarked to the German bond, and national specific factors, which would include the state of the public finances and the bank guarantee. I understand that it is impossible to quantify the specific impact that each of these diverse individual factors have on the borrowing cost. The NTMA notes that the cost of borrowing for Ireland has fallen recently from the levels recorded earlier in the year.
Redundancy Payments.
John Perry
Question:72 Deputy John Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will ensure that the 60% redundancy refund is awarded to a person (details supplied) in County Sligo; and if she will ensure that as a result of the financial hardship involved in this case, this refund will be awarded as expeditiously as possible. [12643/09]
I would like to inform the Deputy that an application for a rebate was received in the Redundancy Payments Section of my Department on 3 March 2009.
Unfortunately, reflecting the turmoil in the labour market, there has been a huge increase in the number of claims. In the interest of fairness, all claims are being dealt with in order of receipt. Currently, on-line claims submitted in November last are being processed, and those submitted manually in October are now being reached for processing. Obviously this delay is very much regretted and every effort is being made to allocate increased resources to the Redundancy Payments Section. I fully appreciate the difficulties facing those who have lost their jobs. Unfortunately, these are common challenges being faced by many and the main focus of my Departments efforts is to make sure that everybody's claim is dealt with in order and within the quickest possible timeframe.
Taxi Industry.
Thomas P. Broughan
Question:73 Deputy Thomas P. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce measures to address the issue of double jobbing in the taxi industry; if she will introduce the EU working time directive for all drivers in the taxi sector; and if she will make a statement on the matter. [12656/09]
The Organisation of Working Time Act 1997 in conjunction with the Organisation of Working Time (Inclusion of Transport Activities) Regulations 2004-S.I. No. 817 of 2004 provide that the maximum average working week of 48 hours and the rest periods and rest breaks provided for in that legislation apply to taxi drivers who have employee status.
Section 33 of the 1997 Act provides that if an employee, such as a taxi driver with employee status, works for two employers he or she may not work more than an average 48 hour week aggregated between the two employers. Section 33 also provides that it is an offence for the second employer to require an employee to work in excess of these hours between both employers and also for the employee to so work between both employers.
Council Directive 93/104/EC of 23 November 1993 concerning certain aspects of the organisation of working time, on which the 1997 Act is based, applies only to workers or employees and does not apply to the self-employed. Accordingly, as it was enacted to transpose the terms of the Directive, the 1997 Act does not apply to the self- employed.
In addition the 1997 Act is employment rights legislation and in common with the wide range of such legislation enacted over the years only applies to workers or employees.
The rationale for the Working Time Directive and the 1997 Act applying to workers or employees only and not to the self- employed is that employees or workers would be vulnerable to any pressure from their employer to work long hours in excess of the maximum average 48 hour week set out in the Directive and 1997 Act, unlike the self-employed who are in a position to control their own working hours. In the circumstances there are no proposals to amend the 1997 Act.
Economic Competitiveness.
Bernard J. Durkan
Question:74 Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps taken to address the issue of competitiveness in the economy in both the manufacturing and service sectors in each of the past eight years to date in 2009; the results of such measures; and if she will make a statement on the matter. [12735/09]
Sustaining Ireland's competitiveness continues to be a key priority for this Government. It is monitored in particular through the work and advice of the National Competitiveness Council. Their work is a very important part of regular short and medium term analysis of what our economy requires to stay competitive. The National Development Plan 2006-2013 underpins competitiveness by improving our infrastructure stock and putting in place advanced capital programmes for our future needs. Of the numerous steps taken to enhance competitiveness since 2001, I would like to highlight some introduced by my department, in particular:
The establishment of Science Foundation Ireland in 2000.
The implementation of the Enterprise Strategy Group's "Ahead of the Curve" Report, published in 2005, by the Enterprise Advisory Group.
The Enterprise Agencies have led an ambitious and strategic programme of funding and support measures for both indigenous enterprise and foreign direct investment.
The National Skills Strategy, published in 2006.
Implementation of the Report of the Small Business Forum, published in 2006.
The IFSC Strategy document, "Building on Success" launched in September 2006, to support the future development of the international financial services industry in Ireland.
The continuing implementation of the Strategy for Science, Technology and Innovation, launched in 2006.
The High Level Group on Manufacturing was established in 2007
Ongoing implementation of The Services Strategy, launched in 2008
Further details of strategies are included in my Department's Annual Reports.
To offset the competitive threat from lower wage economies, in recent years my department has implemented a series of policies to encourage a move to higher productivity levels and the production of higher value added goods and services. Maintaining our low rate of corporation tax, has been of particular value in attracting Foreign Direct Investment.
In common with many other developed economies, we continue to invest in the "knowledge economy". Over the past ten years we have reshaped the infrastructure for research and innovation with strong investment in centres of research excellence, enterprise incubators in universities and many new programmes to help ordinary firms commercialise new ideas. Our policies have led economic activity into new areas, opening up new and sustainable sources of competitive advantage such as life sciences, biotechnology, services and related research, development and innovation. That commitment has delivered successes in terms of our international reputation and our ability to compete for internationally mobile research-related investment.
Our long-term commitment to investing in and supporting science will, I am confident, bring an additional dimension to our competitiveness as well as taking us to a new level of innovation and entrepreneurial activity.
Bernard J. Durkan
Question:75 Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures or incentives she has in mind to address the issues regarding competitiveness in the manufacturing and service areas of the economy; and if she will make a statement on the matter. [12742/09]
Under the Framework for Economic Renewal we are taking a number of measures across Government to address competitiveness objectives. A key element of the Government's current strategy to develop the enterprise sector is to encourage increased levels of investment in research, using more technology in product development and encouraging more innovation. "Building Ireland's Smart Economy" sets a clear agenda to help manage this change.
I believe that our economic prosperity exists to a significant degree on our capability to build ‘high tech' — ‘high value' businesses that can compete successfully from an early stage in global markets. In order to be competitive and to increase exports, Irish companies must focus on improving productivity, investing in research and continue applying innovative solutions to every facet of their business process. I believe that our success in stimulating business to do more R&D will be a key determinant of our future economic well-being. Our development agencies are assisting companies to this end. Agencies are also focused on helping companies to identify and drive down costs to sustain existing jobs and generate new employment and economic growth for Ireland.
Implementation of the recommendations of the High Level Group on Manufacturing will strengthen the manufacturing sector to maximise its potential and exploit new opportunities. I will shortly be announcing the membership of the Manufacturing Forum who will oversee implementation of these recommendations.
Our competitiveness priorities also include a strong focus on skills, education and training. Lifelong education fundamentally supports advances in productivity, upon which our competitiveness depends. I will shortly be announcing an implementation plan for the National Skills Strategy.
We are committed to support the development of environmental technologies in Ireland in order to achieve a win-win situation of improved competitiveness and environmental performance. Emerging sectors such as Environmental Products and Services have significant potential and will be targeted. Both IDA and Enterprise Ireland have recently established an internal team to identify enterprise opportunities for Ireland in the newly emerging clean /green sectors.
We know that services innovation is as vital as technological innovation as a key driver of performance. We are committed to assist business in realising their potential for non-technological innovation through the development of new business models, customer-interfaces and service-products, as an invaluable source of business, as well as, national competitiveness. We want to successfully reach those services companies that traditional RTD innovation policy has not. Ongoing implementation of the Services Strategy will be important in this respect.
Our investment in R&D places the higher education system at the forefront of Ireland's economic development strategy for the coming years. Science Foundation Ireland is working on developing initiatives to forge closer links between Ireland's higher education institutes and industry to drive the R& D agenda. I believe it essential that we continue to maintain the best possible conditions across all policy spheres for supporting and sustaining innovation.
FÁS Training Programmes.
Olwyn Enright
Question:76 Deputy Olwyn Enright asked the Tánaiste and Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 227 of 24 September 2008, the position regarding the series of actions outlined in her reply to facilitate redundant apprentices in completing their studies; and if she will make a statement on the matter. [12651/09]
My Department and FÁS have been continually monitoring the trends in apprenticeship. A number of measures are being put in place to assist apprentices who have become redundant in completing their apprenticeship. These measures are providing assistance to over 2,600 redundant apprentices. These include the following.
FÁS Employment Services Division is focusing on assisting redundant apprentices to source employment, in order that they can complete their apprenticeship by receiving on-the-job training and undertaking the associated competence based assessments.
The scheduling rules for off-the-job training were amended to permit redundant apprentices to progress in their apprenticeships to the next off-the-job phase. This change in the scheduling rules has permitted 428 apprentices to attend phase 4 and phase 6 off-the-job training in 2008 and 398 apprentices attended off-the-job training in the term January 2009 to March 2009.
The scheduling of apprentices for term 3, commencing on 6th April, 2009, is expected to provide for at least 700 apprentices to attend Phase 4 and Phase 6 off-the-job training in the Institutes of Technology.
115 redundant apprentices are currently attending phase 2 training and a further 47 are expected to be called to attend training over the next number of weeks.
The Employer Based Redundant Apprentice Rotation Scheme will provide for up to 500 places during 2009 and currently there are over 90 redundant apprentices placed with eligible employers.
FÁS and ESB Networks have agreed to the placement of 400 redundant electrical apprentices during 2009/2010, for redundant apprentices at phase 5 and phase 7. The first group of 22 apprentices commenced their on-the-job placement with ESB Networks on 23/3/09.
Léargas provided part funding for redundant apprentices for the trades of Carpentry & Joinery, Electrical, Plumbing and Brick & Stonelaying to be placed with employers in Germany to complete their phase 7 on-the-job assessments. Twenty redundant apprentices are currently in Germany placed with German employers.
A handbook/travel guide is in development for apprentices who gain employment overseas
My Department and FÁS will continue to monitor the situation and trends closely and will work with all relevant stakeholders to ensure that redundant apprentices will have every opportunity to complete their apprenticeship and gain a craft qualification.
Training Programmes.
Mary Upton
Question:77 Deputy Mary Upton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will ensure that adequate resources are provided for training persons in employment in addition to ensuring that those recently unemployed are given adequate resources to upskill; and if she will make a statement on the matter. [12680/09]
The State makes a significant investment in training measures for both employed and unemployed. The amount of funding invested in those in employment has increased significantly over recent years and has been used to facilitate a broad range of upskilling programmes, ranging from basic literacy and numeracy to specific skills or support to build the management capabilities and skills within companies to help them achieve their business goals. Such upskilling for those in employment is provided through the various agencies of my Department together with Skillsnet Ltd.
In order to meet the challenges of the changing economy there will be a policy emphasis on activation and training for the unemployed. This includes a focus on those most recently unemployed, where additional opportunities for training and re-skilling are being provided. In the current economic climate it is important to ensure that such people can avail of relatively immediate upskilling to best position themselves to re-enter employment with improved skills.
Community Employment Schemes.
Michael Ring
Question:78 Deputy Michael Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment her views, in respect of the present unemployment situation, on abolishing an age rule to a scheme (details supplied). [12691/09]
Community Employment (CE) is an active labour market programme designed to provide eligible long term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a fixed term basis. The programme helps unemployed people to progress to the open labour market by breaking their experience of unemployment through a return to work routine and assists them in enhancing/developing both their technical and personal skills.
CE remains as an active labour market programme with the emphasis on progression into employment. The programme is managed within this context, with consideration to the availability of resources and the needs of participants and the community. However, it should be remembered that, in so far as participants remain on CE, they are precluding someone else from benefiting from the programme. FÁS makes every effort to ensure that differing levels of demand between neighbouring schemes are equalised. FÁS also operates the programme flexibly as far as possible to ensure the continuation of community projects.
Persons under 55 years of age who fulfil the criteria for CE may be eligible for a maximum of 3 years participation on the Scheme.
It is not my intention to change the rule for those under 55 years, however, the operation of the Scheme is being kept under constant review in the context of the current difficult unemployment situation.
Employment Support Services.
Finian McGrath
Question:79 Deputy Finian McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will respond to a query (details supplied). [12761/09]
FÁS Employment Services provides a full guidance service to the unemployed, including architects, and offers upskilling/retraining opportunities through its Training Services Division. It also provides grant aid assistance through the Technical Employment Support Grant (TESG) for training not provided by or available from FÁS.
FÁS is currently setting up, on a "pilot" basis, a number of executive/professional Job Clubs in the Dublin area. Typical participants would include managing directors, solicitors, HR managers, IT project managers, financial services executives as well as architects.
Tax Code.
Mary Upton
Question:80 Deputy Mary Upton asked the Minister for Finance if it is technically feasible to proceed with an idea (details supplied); and if he will make a statement on the matter. [12647/09]
Mary Upton
Question:81 Deputy Mary Upton asked the Minister for Finance his views on an idea (details supplied) from a legal perspective; and if he will make a statement on the matter. [12648/09]
Mary Upton
Question:86 Deputy Mary Upton asked the Minister for Finance his views on an idea (details supplied); and if he will make a statement on the matter. [12646/09]
I propose to take Questions Nos. 80, 81 and 86 together.
Betting duty is payable by the bookmaker. If a bookmaker were to establish an on-line betting operation within the State, the bookmaker would be liable to pay betting duty. In general, however, the charge to pay duty does not apply to on-line betting because virtually all providers of such a service are based outside the State. A similar scenario occurs in the case of bets carried out by telephone. This is not unusual since these types of operations tend to locate in jurisdictions that have extremely low levels of taxation.
As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. One obvious option in this regard is to include bets placed on-line or over the telephone with companies outside the State. However, it is clear that there are very serious legal difficulties surrounding this option which my officials are exploring on an ongoing basis.
Mary Upton
Question:82 Deputy Mary Upton asked the Minister for Finance his views on an idea (details supplied); and if he will make a statement on the matter. [12649/09]
Betting duty is payable by the bookmaker. If a bookmaker were to establish an on-line betting operation within the State, the bookmaker would be liable to pay betting duty. In general, however, the charge to pay duty does not apply to on-line betting because virtually all providers of such a service are based outside the State. A similar scenario occurs in the case of bets carried out by telephone. This is not unusual since these types of operations tend to locate in jurisdictions that have extremely low levels of taxation.
As I stated during the Finance Bill process, it has been my intention to widen if possible the tax base on which betting duty would be applied. One obvious option in this regard is to include bets placed on-line or over the telephone with companies outside the State. However, it is clear that there are very serious legal difficulties surrounding this option which my officials are exploring on an ongoing basis.
In exploring options for widening the tax base on which betting duty could be applied, my aim is to generate revenue to fund public expenditure generally, rather than to fund one specific item of expenditure. The Deputy will be aware the 2009 Budget publications announced that arrangements would end whereby the annual payment to the Horse and Greyhound Racing Fund would be automatically calculated by reference to the previous year's betting duty or the contribution to the Fund in the year 2000 adjusted for inflation.
Regional Development.
Michael D'Arcy
Question:83 Deputy Michael D’Arcy asked the Minister for Finance the percentage of funds for regional development aid that is from national Exchequer funds and the percentage that is from European or other funding; and if he will make a statement on the matter. [12665/09]
Under the Regional Competitiveness and Employment Objective, Ireland has been allocated €750 million of EU Structural Funds for the period 2007-13: of this €458 million has been allocated to the Border, Midland and Western (BMW) Region and €292 million to the Southern and Eastern (S&E) Region.
Ireland's National Strategic Reference Framework (NSRF), which sets out the strategy for using these Funds, was approved by the European Commission in July 2007. The BMW and S&E European Regional Development Fund (ERDF) and National European Social Fund (ESF) co-funded Operational Programmes implementing the strategic priorities in the NSRF were approved by the European Commission on 16th October and 6th November 2007 respectively.
A further €151m has been allocated under ERDF for smaller Territorial Co-operation Operational Programmes, e.g. the INTERREG Programmes for Ireland/Northern Ireland/Scotland and Ireland/Wales and the PEACE III Programme.
The Structural Funds programmes are co-financed both from the EU Funding and nationally allocated Exchequer funds. The EU Regulation (EC No 1083/2006 of 11 July 2006) sets out the general provisions for the ERDF, ESF and the Cohesion Fund. This states that the contribution from the funds at the level of operational programmes under the Regional Competitiveness and Employment and Territorial Co-operation objectives shall be subject to ceilings of 50% and 75% respectively.
Following the negotiations with the Commission on the content of the BMW and S&E ERDF Operational Programmes, the Commission decisions dated the 16th October 2007 approving the Operational Programmes set the maximum co-financing rates for each of them at 40%; that is the Exchequer will fund 60% and the EU ERDF contribution will be 40%. The Commission decisions in relation to the INTERREG and PEACE III Operational Programmes set the maximum co-financing rates at 75% and 67.54% respectively.
Departmental Properties.
Joan Burton
Question:84 Deputy Joan Burton asked the Minister for Finance the status of a property (details supplied) in Dublin 15; if his attention has been drawn to the fact that this property has been idle for a number of years; if this property comes under the remit of the Office of Public Works; if so, his proposals for the future use of the property; if his attention has further been drawn to the interest expressed by a charity in using this property to expand delivery of services for people with intellectual disabilities; his views on this potential use of the idle property; if he will make contact with the charity in this regard if he, or the OPW, has not already done so; and if he will make a statement on the matter. [12640/09]
The property referred to by the Deputy was purchased a number of years ago with a view to utilising it as a Probation and Welfare Office. Following objections to it being used for this purpose, it was then decided to seek planning permission for it to be converted for use as a Driving Test Centre. Planning permission for such use was granted in May 2008. However, in the current financial climate, there are no immediate plans to progress further with this project. The situation will, nevertheless, be kept under review in the light of the developing financial picture. A number of bodies and organisations have expressed an interest in the past in acquiring the property in the event that it is deemed surplus to State requirements. Should it be decided that this is the case, the normal procedure would be to dispose of it by way of public tender.
Tax Code.
John O'Mahony
Question:85 Deputy John O’Mahony asked the Minister for Finance his plans to exempt community and voluntary groups from paying VAT in providing facilities for their communities; and if he will make a statement on the matter. [12642/09]
Charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT. Accordingly, it is not possible under EU law to change the current VAT treatment of charities.
Even if funds were available for grant-aiding charities and other voluntary groups, it is not clear that the most appropriate use of Exchequer funds would be to relieve VAT as opposed to supporting their activities using other criteria, as is already being done, which provides a more focused approach.
The tax code already provides considerable assistance to charities through exemption from income tax, corporation tax, capital gains tax, deposit interest retention tax, capital acquisitions tax, stamp duty, probate tax and dividend withholding tax.
Question No. 86 answered with Question No. 80.
Financial Services Remuneration.
Michael D'Arcy
Question:87 Deputy Michael D’Arcy asked the Minister for Finance his views on placing a tax on bonuses paid to bank executives in banks which received the State guarantee, similar to the proposal from the United States in relation to senior executives in a company (details supplied); and if he will make a statement on the matter. [12666/09]
The position is that all salaries and bonuses paid by financial institutions are taxable in the normal way. It would not be open to the Government to impose tax retrospectively on such payments already made. The Deputy will be aware that I recently published the report by the Covered Institution Remuneration Oversight Committee (CIROC) which recommended reductions in prevailing base salary, bonus and pension levels for chief executives, chairpersons and ordinary board members that the Committee considered to be, in many cases, markedly excessive. The Committee report, that with the exception of the Irish Nationwide Building Society where the CEO was paid a pre-contracted incentive bonus of €1,000,000 in relation to 2008, no bonuses will be paid to chief executives or the senior executive management teams in relation to performance in 2008/2009.
Pension Provisions.
Michael D'Arcy
Question:88 Deputy Michael D’Arcy asked the Minister for Finance if the gratuity paid to the former Financial Regulator (details supplied) is tax free; and if he will make a statement on the matter. [12667/09]
The Central Bank and Financial Services Authority of Ireland complies fully with all tax requirements. Under statutory pension schemes and pension schemes approved by the Revenue Commissioners, there is no liability to income tax in respect of retirement gratuities or lump sum paid to members of such schemes on retirement provided Revenue rules are complied with. Accordingly, the pension gratuity was not subject to tax and all other payments made by the Financial Regulator to its former Chief Executive on the occasion of his retirement were fully subject to tax.
Wealth Statistics.
Michael D. Higgins
Question:89 Deputy Michael D. Higgins asked the Minister for Finance the research that has been carried out over the past ten years by his Department on the extent and breakdown of wealth, as opposed to income here; the findings of such research; if he will make these findings available; the changes in findings and figures on a year to year basis over this ten year period; if it is proposed that such research or new research in this area be used in order to create an equitable system of taxation in the 7 April 2009 budget; his views on the taxing of wealth; and if he will make a statement on the matter. [12670/09]
I have been informed that no general research has been carried out over the past ten years by either the Department of Finance or the Revenue Commissioners regarding the extent and breakdown of wealth as opposed to income. However, all of an individual's assets and liabilities are declared in a number of specific circumstances — for example:
after the death of an individual, on an Inland Revenue Affidavit, which is a document that is required to be delivered to the Revenue Commissioners and certified by them in order to obtain a Grant of Probate or Letters of Administration; or
if an individual is required to submit a Statement of Affairs regarding an investigation by the Revenue Commissioners.
In addition, an individual is asked to list chargeable assets acquired and disposed of during a year on their annual tax return.
Asset values increase and decrease over time and in the context of recent economic circumstances, they may have declined considerably in many cases. Thus, if the value of an asset or of an individual's wealth is measured at a particular time there is no guarantee that the asset value or the individual's wealth will remain at that level or increase from that point.
Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) are, in effect, taxes on wealth, in that they are levied on an individual or company when they dispose of an asset (CGT) or acquire an asset through gift or inheritance (CAT). The rate of both these taxes was increased from 20% to 22% in the last Budget and Finance Act. All taxes and potential taxation measures are constantly reviewed in the context of the Budget and Finance Bill.
Flood Relief.
Tom Sheahan
Question:90 Deputy Tom Sheahan asked the Minister for Finance if he will visit the flooded land at Rossbeigh and Incheree, County Kerry. [12683/09]
The Office of Public Works (OPW) assumed responsibility for the management of coastal erosion and coastal flood risk in January this year. OPW will continue the policy of working with Local Authorities to deal with these issues. and in particular of supporting the Authorities to undertake measures to deal with erosion where these are environmentally, socially and economically justifiable. I am advised that OPW officials have discussed the problems in the Rossbeigh area with their Local Authority counterparts and those contacts will be pursued.
Pension Provisions.
Mary Upton
Question:91 Deputy Mary Upton asked the Minister for Finance if he will respond to a query from a person (details supplied) in Dublin 20 on the pension levy as it affects research staff in universities here; and if he will make a statement on the matter. [12689/09]
The position is that public servants are in general liable to pay the pension-related deduction introduced in the Financial Emergency Measures in the Public Interest Act 2009.
University research staff are liable to pay the deduction because they meet the key qualifying conditions under the Act, which is to say that they are public servants and are members of a public service pension scheme.
I am aware that some university research staff hold fixed-term or non-permanent posts, and may on that basis have concerns about their job security. Certain concerns in relation to the pay rates of such staff have also been articulated. However none of these facts or concerns bear on the liability of the staff in question to pay the deduction. In this regard it is worth noting that fixed-term and non-permanent workers across many areas of the public service are paying the deduction.
In this general connection, the Government has moved to make fixed-term university researchers pensionable, and has thus significantly improved the attractiveness of a research career. It should also be noted that, even for relatively short periods in such posts, pensionable service is accrued.
It may also be transferred in the future to any public service employment. If the service is not transferred, section 6 of the Act provides for a refund of the deduction in certain limited circumstances, essentially in those cases where, on leaving employment, the pension scheme member has not accrued sufficient service to build up a benefit in any public service pension scheme.
Insurance Industry.
John Deasy
Question:92 Deputy John Deasy asked the Minister for Finance if he will explain the law as it relates to insurance claims that have been taken against companies that subsequently went out of business; and if he will make a statement on the matter. [12716/09]
I presume the Deputy is referring to claims being made against insolvent insurers who are unable to meet policy holders claims. A compensation fund exists for non life insurance companies. However no such fund exists for life companies. The compensation fund for non life insurance companies was set up under Section 2 of the Insurance Act 1964 (the Act). Section 3 of the Act provides that monies from the Insurance Compensation Fund can be used to pay, subject to certain conditions, monies to consumers in respect of parts of their claims and to support the administration of the insolvent insurance company on a going concern basis.
Tax Collection.
Bernard J. Durkan
Question:93 Deputy Bernard J. Durkan asked the Minister for Finance when a P60 will issue in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [12734/09]
I have been advised by the Revenue Commissioners that they contacted the taxpayer's employer on 24th March 2009 and were advised that Form P60 was issued to the taxpayer in January 2009. As the taxpayer does not appear to have received it, the employer will issue a copy of Form P60 to the taxpayer.
Fiscal Policy.
Bernard J. Durkan
Question:94 Deputy Bernard J. Durkan asked the Minister for Finance the steps he will take to stimulate the economy; and if he will make a statement on the matter. [12736/09]
In broad terms, there are three strands to the Government's approach to stimulating the economy. Firstly, we are putting the public finances on a more sustainable path, in order to restore domestic and international confidence in Ireland, thereby promoting Ireland as a sound place in which to invest. Secondly, the Government's package of measures for the Irish banking system, including significant steps to maintain the stability of the financial system and those taken under the recently announced recapitalisation initiative, will serve to stimulate credit supply and consequently economic recovery.
Finally, we are implementing measures to restore competitiveness. For instance, we are maintaining capital investment at relatively high levels of national income. We have also introduced a pensions levy in the public sector which, in addition to helping re-balance the public finances, will have a positive impact on national competitiveness.
More generally, the Framework for Sustainable Economic Renewal launched by the Taoiseach last December sets out our agenda over the next few years of how we will re-orientate and reprioritise the business of Government to achieve the goal of building a Smart Economy, which will help underpin our future.
Financial Services Regulation.
Bernard J. Durkan
Question:95 Deputy Bernard J. Durkan asked the Minister for Finance if he will issue guidelines or restrictions to mortgage companies involved in home repossession with particular reference to instances in which mortgages were issued when there was a knowledge of either inability to pay or over valuation of the property; and if he will make a statement on the matter. [12737/09]
It is a particular priority of the Government to ensure as much as possible that difficulties in relation to mortgage arrears do not result in legal proceedings for home repossession. Home repossession should be, and generally is, the last resort for the lender and the preferred method of dealing with arrears cases should be early intervention.
The Financial Regulator has issued a statutory Code of Conduct on Mortgage Arrears applicable to all mortgage lenders to assist consumers in arrears difficulties. The Code requires that all genuine arrears cases must be handled sympathetically and positively by the lender, with the objective at all times of assisting the borrower to meet his/her obligations. Where an arrears situation continues, the lender must examine each case on its individual merits and explore with the borrower various alternative repayment measures. A lender may only apply to the courts to commence enforcement of legal action for repossession six months from the time arrears first arise; and must not seek repossession of the property until every reasonable effort has been made to agree an alternative repayment schedule with the borrower or his/her nominated representative.
The Financial Regulator's statutory Consumer Protection Code has applied to credit institutions since 1 July 2007 and was extended to other lenders on 1 June 2008, following the introduction of legislation which provided for the regulation of sub-prime lenders by the Financial Regulator. The Consumer Protection Code contains "Know the Consumer" and "Suitability" requirements, which must be followed by both lenders and intermediaries at point of sale. A mortgage lender will have to demonstrate that it has gathered sufficient information from the consumer to allow it to provide a recommendation to that consumer. The mortgage recommended must be suitable to the consumer having regard to the facts disclosed by the consumer. A written statement setting out the reasons why a mortgage product/selection of mortgage products offered to the consumer are suitable must be given to the consumer. Mortgage intermediaries must submit to a mortgage lender a signed declaration that it has had sight of all original supporting documentation including banks statements, P60/certificate of earnings and other supporting documentation evidencing the consumer's identity and ability to repay.
As part of feedback issued by the Financial Regulator in 2007 to mortgage lenders following a survey of the mortgage sales process, the Financial Regulator indicated that factors such as, but not limited to those set out below should be considered when assessing suitability in relation to mortgage products:Purpose of borrowing, type and length of loan, attitude to fixed/variable interest, age of consumer, savings track record, LTV, employment, income, repayment capacity.
If a consumer has a complaint about his/her mortgage a complaint must first be made directly to the lender. If the consumer is dissatisfied with the outcome of his/her complaint he/she can then refer the matter for further investigation to the Financial Services Ombudsman.
The two banks participating in the recapitalisation programme have each committed that they will not commence court proceedings for repossession of a principal private residence until after 12 months of arrears appearing, where the customer continues to operate reasonably and honestly with the bank. The recapitalised banks, have in addition, assured the Government that in the normal course of events they will make every effort to avoid repossessions.
Bernard J. Durkan
Question:96 Deputy Bernard J. Durkan asked the Minister for Finance if action has been taken or is expected to be taken against mortgage companies involved in sub-prime lending up to the extent of 200% of the entitlement of the applicant; and if he will make a statement on the matter. [12738/09]
The Financial Regulator's statutory Consumer Protection Code has applied to credit institutions since 1 July 2007 and was extended to other lenders on 1 June 2008, following the introduction of legislation which provided for the regulation of sub-prime lenders by the Financial Regulator. It requires regulated entities to act honestly, fairly and professionally in the best interests of their customers and the integrity of the market. The Code also requires each mortgage lender to inform consumers, in writing, of the status of their mortgage accounts as soon as possible after the lender becomes aware of the arrears.
The Consumer Protection Code also contains "Know the Consumer" and "Suitability" requirements, which must be followed by both lenders and intermediaries at point of sale. A mortgage lender will have to demonstrate that it has gathered sufficient information from the consumer to allow it to provide a recommendation to that consumer. The mortgage recommended must be suitable to the consumer having regard to the facts disclosed by the consumer. A written statement setting out the reasons why a mortgage product/selection of mortgage products offered to the consumer are suitable must be given to the consumer. Mortgage intermediaries must submit to a mortgage lender a signed declaration that it has had sight of all original supporting documentation including banks statements, P60/certificate of earnings and other supporting documentation evidencing the consumer's identity and ability to repay.
The Financial Regulator is currently carrying out a further examination of mortgage lenders to ensure that they are in compliance with the specific provisions of the Consumer Protection Code and the Consumer Credit Act. The examination will also review the application of the residential mortgage arrears and repossession procedures and practices in place in mortgage lenders, as advised to the Financial Regulator in 2008, to ensure that consumers are being treated fairly, and will seek an update on the implementation of the "best practices" outlined in the Financial Regulator's letter of 16 December 2008.
If a consumer has a complaint about his/her mortgage a complaint must first be made directly to the lender. If the consumer is dissatisfied with the outcome of his/her complaint he/she can then refer the matter for further investigation to the Financial Services Ombudsman.
Banking Sector Regulation.
Bernard J. Durkan
Question:97 Deputy Bernard J. Durkan asked the Minister for Finance when it is expected that traditional banking and lending practices are expected to become operational; and if he will make a statement on the matter. [12739/09]
The primary objective of the Government is to secure and maintain the financial and economic position of the State. Significant steps have been taken to achieve that objective including the Bank Guarantee Scheme and the recapitalisation of Ireland's two main banks. An essential element of the recapitalisation scheme, which I expect to be implemented in the very near future, anticipates the banks involved increasing the level of credit available throughout the economy. As part of the recapitalisation measures, the recapitalised banks have committed to increase lending capacity to small and medium enterprises (SMEs) by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. If the mortgage lending is not taken up, then the extra capacity will be available to SMEs. Compliance with this commitment will be monitored by the Financial Regulator. An independent review of credit availability, funded by the banks but managed jointly by the banks, Government and business representatives is also underway and will be completed shortly. Amongst the issues covered by this review will be changes in bank lending, repayment terms and a comparison with customer experiences prior to the onset of the financial crisis. I am satisfied that this review, along with the quarterly reports from the recapitalised institutions, will give a clear picture regarding the flow of credit in the Irish economy.
The Financial Regulator has also worked closely with my Department to introduce two new codes. The code of conduct for business lending applies to all regulated banks and building societies and will facilitate access to credit, promote fairness and transparency and ensure that banks will assist borrowers in meeting their obligations, or otherwise deal with an arrears situation in an orderly and appropriate manner. The second code covers mortgage arrears and is designed to ensure that mortgage lenders take action to assist householders who are in arrears and will apply to all mortgage lenders, including banks, building societies and retail credit firms.
Price Inflation.
Bernard J. Durkan
Question:98 Deputy Bernard J. Durkan asked the Minister for Finance if he has in mind taxation measures or incentives to encourage multinational chainstores here to bring their mark-up into line with that in adjoining jurisdictions; and if he will make a statement on the matter. [12740/09]
The option of using tax measures or some other incentives to influence a multinational retailer's mark-up in this jurisdiction, to align it to that in another jurisdiction, does not arise.
Market conditions are such that retailers, whether domestic or multinational, are lowering their mark-up presently. As the Deputy will be aware, in the context of retail prices in the State, the Tánaiste and Minister for Enterprise, Trade and Employment has asked the Competition Authority to investigate supply chains in the retail sector. The Competition Authority is to report by 30 April 2009.
Tax Code.
Bernard J. Durkan
Question:99 Deputy Bernard J. Durkan asked the Minister for Finance if it is his intention to reduce VAT or other taxes with a view to competing with other immediate jurisdictions; and if he will make a statement on the matter. [12741/09]
As the Deputy will be aware, taxes are considered in the context of a Budget process. In regard to the forthcoming Supplementary Budget, it is the usual practice for the Minister for Finance not to speculate in advance of a Budget on what it will contain and I do not propose to deviate from that practice.
Economic Competitiveness.
Bernard J. Durkan
Question:100 Deputy Bernard J. Durkan asked the Minister for Finance the steps he has taken or proposes to take to improve the competitiveness in the economy; and if he will make a statement on the matter. [12743/09]
The economy's competitive position has deteriorated in recent times. This deterioration has been driven by wage increases in excess ofproductivity and a rate of inflation above our euro area peers. Notwithstanding the fact that for most of the last 12 months our rate of inflation has been lower than the euro area, our price levels are still some 20% above the euro area. Regaining our competitive position — which as a small open economy is critical to our economic success — will require each of us to play our part and work towards this end.
For its part, the Government has, and will continue, to support competitiveness. To this end, the Government is committed to maintaining a pro-enterprise environment, and has implemented policies aimed at improving competition in product markets and flexibility in the labour market. For example, last October in Budget 2009, I re-affirmed the Government's commitment to the 12½ per cent rate of Corporation Tax. The subsequent Finance Act contained a number of very significant changes to the R&D tax credit scheme aimed at encouraging further R&D activity here. In addition, the Government is continuing to prioritise productivity-enhancing investment under the National Development Plan, subject to available resources. This applies to both infrastructural investment as well as investment in education and skills.
The Government introduced the Framework for Sustainable Economic Renewal, called "Building Ireland's Smart Economy", in December 2008 which sets out a clear roadmap for Ireland's move back to economic growth and prosperity. The Cabinet Committee for Economic Renewal is driving this strategy and we will continue to pursue policies that will build on our strengths, address our weaknesses and maximise economic activity and employment.
In addition, the public service pension-related deduction recently instituted in the light of the pressures on the public finances should have a demonstration effect in the private sector which will have a beneficial knock-on effect for competitiveness.
Finally, the Government has announced plans for a Supplementary Budget on 7th April in order to ensure stability in the public finances. This will have a positive impact in terms of restoring confidence in the Irish economy and, in turn, boosting our attractiveness as a location for inward investment. I would also point out that, by undertaking the necessary adjustments now, the Government will avoid having to take more injurious action in the future. In this way, Government action is supporting the long-term competitiveness of the economy.
Economic Forecasts.
Bernard J. Durkan
Question:101 Deputy Bernard J. Durkan asked the Minister for Finance if he proposes to take action to ensure that economic forecasting by his Department is more soundly based than in the past five years; and if he will make a statement on the matter. [12744/09]
I am satisfied that economic forecasting in my Department is as soundly based as it can possibly be. The Deputy will note that even in normal circumstances short-term economic forecasting is not an exact science, given the many dynamic components which constitute an economy. We are not now in normal economic times and the frequency that all other forecasters, national and international, have revised their forecasts points to the unusually high degree of uncertainty that exists.
Following the extraordinary financial market developments last September, the global economy has entered uncharted waters, and in this new environment virtually all economic forecasters — the world over — are finding it difficult to make accurate projections.
Analysis published alongside the 2006 Budget showed that my Department's macro-economic forecasts over the period 1997-2004 were amongst the most accurate of those produced by the major domestic and international economic forecasters. Since then, my Department has continued to perform well in terms of macro-economic projections.
In early January when my Department published its forecast it was one of the most pessimistic forecasts available. Since then most other commentators have reduced their forecasts reflecting international economic data that have become available.
The approach taken by my Department is to identify the most likely outcome and to outline the main risks — both upside and downside — to this. This is in line with other organisations that produce regular forecasts on the Irish economy.
Financial Services Regulation.
Richard Bruton
Question:102 Deputy Richard Bruton asked the Minister for Finance his views on the submission of an association (details supplied) on the harsher rules that apply to its members, compared to solicitors, accountants or banks, in terms of regulatory obligations; if he is considering changes in these provisions. [12754/09]
I met with representatives of the association referred to in the Deputy's question on 17 February last. The specific issue they highlighted was in relation to the conclusions drawn in a recent Regulatory Impact Assessment (RIA) which was conducted by my Department. This recommended that, when amending the Insurance Mediation Regulations (S.I. No. 13 of 2005), the existing regulatory regime should be maintained for accountants that perform insurance mediation business on an ancillary basis. However, the RIA also made a number of recommendations which were aimed at making the existing Approved Professional Body (APB) regime more transparent. In particular, the RIA recommended that the current benchmark for determining ancillary business should be reviewed.
The association referred to had argued strongly against the retention of the existing APB regime during the RIA process. On the other hand, the accountancy representative bodies argued the contrary position equally strongly. In those circumstances, it was appropriate that particular emphasis should be given to the position of the Financial Regulator, in view of its roles in regard to the supervision of insurance intermediaries, as well as its statutory responsibility for consumer protection.
The Financial Regulator's assessment was that the current APB regime delivers effective regulation in a rigorous, independent and professional manner. The Financial Regulator confirmed to the Department that there is no evidence that the APB supervisory regime is less effective than direct regulation by the Financial Regulator. As far as the impact on consumers and the rights of citizens are concerned, the assessment of the Financial Regulator is that customers are best served by the retention of the present APB arrangement for insurance mediation.
At our meeting referred to earlier, the association disagreed with this conclusion and, consequently, I offered to ask the Financial Regulator to re-examine its assessment. The Financial Regulator is at present analysing the counter arguments put forward by the association and I await the Financial Regulator's further assessment with interest.
Pension Provisions.
Richard Bruton
Question:103 Deputy Richard Bruton asked the Minister for Finance his views on modifying Revenue pension rules to allow self-employed people who suffer accidents which prevent them from working to access moneys in their pension funds early; and if he will make a statement on the matter. [12755/09]
I am advised by the Revenue Commissioners that a self-employed individual making provision for retirement will generally do so by way of contributing to Retirement Annuity Contracts (RACs) and/or Personal Retirement Savings Accounts (PRSAs). The pensions tax legislation already facilitates the inclusion of an ill health early retirement option in these pension products. The relevant legislative provisions are sections 784(3) (b) and 787K(2)(a) of the Taxes Consolidation Act 1997. Specifically, the legislation allows benefits to commence before age 60 where an individual becomes "permanently incapable through infirmity of mind or body of carrying on his or her own occupation or any occupation of a similar nature for which he or she is trained or fitted". In order to access benefits under these provisions the pension administrator must have received medical evidence that the individual satisfies the medical criteria.
Fiscal Policy.
Kieran O'Donnell
Question:104 Deputy Kieran O’Donnell asked the Minister for Finance the measures he will bring forward in the 7 April 2009 budget on dealing with the toxic loans in the banking sector. [12769/09]
As the Deputy is aware it is not the practice to respond to Parliamentary Questions on the possible inclusion or otherwise of specific matters directly in advance of a forthcoming budget. However, The Government is conscious that in current market circumstances there is a need to bring greater certainty and transparency to the operations of systemically important financial institutions, in particular in relation to specific asset classes currently perceived as carrying a higher than average risk.
In this context, the Government is examining proposals for the management and reduction of risks within financial institutions with respect to these specific exposures, having regard to international developments. As part of this work I have asked Dr Peter Bacon and the National Treasury Management Agency to report to me on the matter. I have seen the report prepared by Dr Bacon for the NTMA. The report will inform the Government's ongoing considerations, along with ongoing work at EU and European Central Bank level. I will be bringing forward proposals in this area as a matter of priority.
Kieran O'Donnell
Question:105 Deputy Kieran O’Donnell asked the Minister for Finance if he will publish the economic plan as part of the 7 April 2009 budget; if not, when this plan will be published; and the length of time this plan is for. [12770/09]
The Government's approach to reviving the economy consists of three broad strands — improving competitiveness, stimulating credit supply in our financial system and putting the public finances on a more sustainable basis. Given the deterioration in the public finances in recent months, the focus of the 7 April Supplementary Budget will be on measures to put the public finances on a more sustainable path.
More generally, the Framework for Sustainable Economic Renewal launched by the Taoiseach last December sets out our agenda over the next few years for how we will re-orientate and reprioritise the business of Government to achieve the goal of building a Smart Economy, which will help underpin our future.
Kieran O'Donnell
Question:106 Deputy Kieran O’Donnell asked the Minister for Finance the measures to be proposed in the 7 April 2009 budget involving the taxation of tax free lump sums in respect of public and private sector pensions. [12771/09]
The House will appreciate that I do not propose to comment on what may or may not be contained in the forthcoming supplementary Budget.
Kieran O'Donnell
Question:107 Deputy Kieran O’Donnell asked the Minister for Finance the parameters he will use for the general Government balance deficit amount and percentage of tax increases, income, PRSI, pension and other levy adjustments and expenditure cuts and savings included in the national development plan in framing the 7 April 2009 budget. [12772/09]
The Supplementary Budget is to be presented to the Dáil on the 7th of April. The Government has already taken significant action to restore stability to the public finances and the supplementary Budget will continue this process. In relation to the details of what will be presented in the Supplementary Budget, it is not the usual practice to speculate in advance on the content of any Budget and I do not propose to deviate from this practice now. However, all options are on the table, including action on both current and capital expenditure, as well as revenue raising measures.
Decentralisation Programme.
Willie Penrose
Question:108 Deputy Willie Penrose asked the Minister for Finance when the construction of the Department of Education and Science offices in Mullingar, County Westmeath, as part of the decentralisation programme, will take place; when the necessary contracts will be signed to enable the construction to commence; and if he will make a statement on the matter. [12775/09]
A number of key projects were identified as priority elements of the decentralisation programme in the Government announcement of 14 October 2008. The construction of a new headquarters building in Mullingar for the Department of Education and Science, in conjunction with a new headquarters for the Department of Agriculture, Fisheries and Food in Portlaoise and a new decentralised office for staff of the Department of Enterprise, Trade and Employment in Carlow was one of the projects given priority status.
The proposed decentralised offices in the above three locations are being procured by means of a Public Private Partnership as a single Design, Build, Finance and Maintain contract. Planning permissions have been received for the three buildings, and discussions are proceeding with the successful tenderer with a view to finalising financial closure and contract signing.
Tax Code.
Róisín Shortall
Question:109 Deputy Róisín Shortall asked the Minister for Finance if, in respect of appendix D of the Green Paper on Pensions, he will provide the same information in respect of PRSAs and RACs for the last year for which figures are available. [12782/09]
I am informed by the Revenue Commissioners that the latest relevant information available is in respect of income tax relief allowed for contributions to Retirement Annuity Contracts (RACs) and Personal Retirement Savings Accounts (PRSAs) for the income tax year 2005. RACs and PRSAs are available to the self-employed and to employees not in occupational pension schemes.
The information is set out in the following tables, which provide the number of cases, amount of deduction and reduction in tax for tax relief for RACs and PRSAs for the various income ranges. The information is based on income returns contained in Revenue records at the time the data were compiled for analytical purposes, representing about 98.5 % of all returns expected. A married couple who has elected or has deemed to have elected for joint assessment is counted as one tax unit.
|
Retirement Annuity — by range of Gross Income |
||||||
|---|---|---|---|---|---|---|
|
Range of gross income |
Totals |
|||||
|
From |
To |
Number of cases |
Amount of deduction |
Reduction in tax |
Gross Tax* |
Reduction in tax as % of Gross Tax |
|
€ |
€ |
€ |
€ |
€ |
% |
|
|
— |
9,000 |
1,008 |
1,881,903 |
75,498 |
82,740 |
91.2 |
|
9,000 |
10,000 |
265 |
374,631 |
30,386 |
33,229 |
91.4 |
|
10,000 |
12,000 |
657 |
1,025,582 |
134,741 |
190,034 |
70.9 |
|
12,000 |
15,000 |
1,392 |
2,392,161 |
350,206 |
679,108 |
51.6 |
|
15,000 |
17,000 |
1,323 |
2,233,300 |
352,112 |
842,250 |
41.8 |
|
17,000 |
20,000 |
2,589 |
4,780,514 |
816,857 |
2,287,102 |
35.7 |
|
20,000 |
25,000 |
5,651 |
11,087,382 |
2,080,370 |
7,539,642 |
27.6 |
|
25,000 |
27,000 |
2,715 |
5,668,769 |
1,098,028 |
4,696,639 |
23.4 |
|
27,000 |
30,000 |
4,381 |
9,484,765 |
1,880,533 |
9,069,509 |
20.7 |
|
30,000 |
35,000 |
7,751 |
18,261,845 |
4,705,878 |
22,318,537 |
21.1 |
|
35,000 |
40,000 |
7,780 |
20,674,562 |
6,003,555 |
30,473,740 |
19.7 |
|
40,000 |
50,000 |
14,363 |
45,816,794 |
14,547,614 |
79,144,477 |
18.4 |
|
50,000 |
60,000 |
12,398 |
48,880,951 |
15,565,254 |
95,469,140 |
16.3 |
|
60,000 |
75,000 |
14,057 |
70,245,866 |
25,617,798 |
155,121,844 |
16.5 |
|
75,000 |
100,000 |
13,615 |
99,961,110 |
40,744,562 |
235,383,899 |
17.3 |
|
100,000 |
150,000 |
9,892 |
125,055,147 |
52,235,223 |
295,482,218 |
17.7 |
|
150,000 |
200,000 |
3,705 |
81,437,198 |
34,165,790 |
184,174,412 |
18.6 |
|
200,000 |
250,000 |
2,240 |
67,483,762 |
28,305,769 |
153,550,523 |
18.4 |
|
Over |
250,000 |
5,532 |
278,887,354 |
117,075,544 |
832,516,852 |
14.1 |
|
Totals |
111,314 |
895,633,596 |
345,785,718 |
2,109,055,895 |
16.4 |
*"Gross tax" means the tax that would be due before relief is allowed for retirement annuity deductions.
|
Personal Retirement Savings Accounts — by range of Gross Income |
||||||
|---|---|---|---|---|---|---|
|
Range of gross income |
Totals |
|||||
|
From |
To |
Number of cases |
Amount of deduction |
Reduction in tax |
Gross Tax* |
Reduction in tax as % of Gross Tax |
|
€ |
€ |
€ |
€ |
€ |
% |
|
|
— |
9,000 |
99 |
131,880 |
1,331 |
1,655 |
80.4 |
|
9,000 |
10,000 |
36 |
44,781 |
4,764 |
5,745 |
82.9 |
|
10,000 |
12,000 |
59 |
85,072 |
11,937 |
17,987 |
66.4 |
|
12,000 |
15,000 |
150 |
233,336 |
32,587 |
63,085 |
51.7 |
|
15,000 |
17,000 |
149 |
223,139 |
38,841 |
91,737 |
42.3 |
|
17,000 |
20,000 |
309 |
508,353 |
91,482 |
285,601 |
32.0 |
|
20,000 |
25,000 |
672 |
1,222,950 |
234,106 |
964,971 |
24.3 |
|
25,000 |
27,000 |
341 |
633,141 |
121,908 |
658,814 |
18.5 |
|
27,000 |
30,000 |
468 |
909,837 |
182,962 |
1,146,859 |
16.0 |
|
30,000 |
35,000 |
784 |
1,885,268 |
550,654 |
2,586,331 |
21.3 |
|
35,000 |
40,000 |
748 |
2,020,822 |
673,858 |
3,504,921 |
19.2 |
|
40,000 |
50,000 |
1,231 |
3,918,871 |
1,331,798 |
7,816,522 |
17.0 |
|
50,000 |
60,000 |
1,010 |
4,258,348 |
1,460,433 |
8,867,772 |
16.5 |
|
60,000 |
75,000 |
1,152 |
5,832,227 |
2,224,524 |
13,755,660 |
16.2 |
|
75,000 |
100,000 |
1,143 |
8,357,350 |
3,448,343 |
20,731,795 |
16.6 |
|
100,000 |
150,000 |
914 |
10,057,040 |
4,219,484 |
28,241,781 |
14.9 |
|
150,000 |
200,000 |
302 |
5,161,334 |
2,166,660 |
15,221,998 |
14.2 |
|
200,000 |
250,000 |
157 |
3,749,842 |
1,572,734 |
10,862,836 |
14.5 |
|
Over |
250,000 |
282 |
9,359,602 |
3,931,033 |
39,741,329 |
9.9 |
|
Totals |
10,006 |
58,593,193 |
22,299,439 |
154,567,399 |
14.4 |
*"Gross tax" means the tax that would be due before relief is allowed for PRSA deductions.
Hospital Staff.
Dan Neville
Question:110 Deputy Dan Neville asked the Minister for Health and Children the hospitals which do not have special psychiatric nurses for patients who self harm in acute hospitals. [12624/09]
As this is a service matter it has been referred to the HSE for direct reply.
Statutory Registration.
Dan Neville
Question:111 Deputy Dan Neville asked the Minister for Health and Children the position regarding the setting up of the Health and Social Care Professionals Council and of registration boards for certain designated health and social care professionals; and the designated professions under section 4 of the Health and Social Care Professionals Act 2005 for which established boards have been set up in view of the fact that this Act was signed into law on 30 November 2005. [12625/09]
The Health and Social Care Professionals Act 2005 provides for the establishment of a system of statutory registration for 12 health and social care professionals. This new system of statutory registration will apply to the twelve professions regardless of whether they work in the public or private sector or are self-employed and is the first time that fitness to practise procedures will be put in place for these professionals on a statutory basis. The structure of the system of statutory registration will comprise a registration board for each of the professions to be registered, a Health and Social Care Professionals Council with overall responsibility for the regulatory system and a committee structure to deal with disciplinary matters. While the proposed system of statutory registration applies, in the first instance to twelve health and social care professions, the legislation empowers the Minister for Health and Children to include, on the basis of specific criteria, additional health and social care professions in the regulatory system by regulation over time, as appropriate.
The first step in the implementation of the system was the establishment of the Health and Social Care Professionals Council, launched in March 2007. The Council has now recruited a Chief Executive Officer in May of last year and is currently putting in place a suitable organisational structure. The Council has examined which professions from within the designated twelve are most suitable for early registration and has decided to appoint the first two of twelve statutory Registration Boards, provided for under the Act. The Social Workers Registration Board and the Physiotherapists Registration Board are the first two registration boards prioritised for registration in 2009. It is proposed that two additional registration boards will be established by the end of 2009 and a decision regarding the order of roll-out of these additional boards will be made by the Council in due course.
Hospitals Building Programme.
Dan Neville
Question:112 Deputy Dan Neville asked the Minister for Health and Children if the high observation area of 5B Mid-Western Regional Hospital has been constructed. [12626/09]
As this is a service matter, it has been referred to the HSE for direct reply.
Nursing Homes Repayment Scheme.
Denis Naughten
Question:113 Deputy Denis Naughten asked the Minister for Health and Children further to Parliamentary Question No. 408 of 27 January 2009, when a nursing home refund appeal by persons will be processed; the reason for the delay; if the delay is as a result of extended holiday leave; and if she will make a statement on the matter. [12629/09]
The Health Repayment Scheme Appeals Office is an independent office established to provide an appeals service to those who wish to appeal the decision of the Scheme Administrator under the Health (Repayment Scheme) Act 2006. The Appeals Officers must investigate each appeal independently, these investigations can require additional reviews by the Health Service Executive and the Scheme Administrator and certain appeals present a high level of complexity. In addition a high percentage of appellants have requested an Oral Hearing with an Appeals Officer.
The Claimant referred to by the Deputy lodged an Appeal Form with the Health Repayment Scheme Appeals Office on 3 June 2008 and lodged an Oral Hearing Form on 12 June 2008. The Appeals Officer is awaiting additional information from the Scheme Administrator as part of the review of this appeal.
Hospital Services.
James Reilly
Question:114 Deputy James Reilly asked the Minister for Health and Children the action she will take to address the shortage of neurosurgery at Beaumont Hospital, Dublin; when a person (details supplied) in County Meath will be admitted to the Beaumont Hospital neurosurgical unit; and if she will make a statement on the matter. [12634/09]
I have identified the development of neuroscience services as a priority in recent years. Additional revenue funding of €7m was allocated to the Health Service Executive (HSE) in 2006 and 2007 for the development of services in the area of neurosciences, which comprises neurology, neurophysiology and neurosurgery. Additional funding of €850,000 has been included in the HSE's 2009 National Service Plan to support the further development of neurosciences, including neurosurgery. My Department has requested the Parliamentary Affairs Division of the Executive to reply directly to the Deputy in relation to the specific service issue raised.
Health Services.
Michael McGrath
Question:115 Deputy Michael McGrath asked the Minister for Health and Children the details of the Health Service Executive policy for treating persons with a rare medical condition (details supplied). [12650/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
Ambulance Service.
Pat Breen
Question:116 Deputy Pat Breen asked the Minister for Health and Children when the national spatial strategy for the ambulance service will be published; and if she will make a statement on the matter. [12652/09]
As this is a service matter, it has been referred to the HSE for direct reply.
Medical Cards.
Frank Feighan
Question:117 Deputy Frank Feighan asked the Minister for Health and Children the amount of savings a person can have as well as €700 weekly income and still qualify for over 70 years GMS card. [12701/09]
Under the Health Act 2008, automatic entitlement to a medical card for persons aged 70 or over ceased on 31st December 2008, and with effect from 1st January 2009, the income thresholds for entitlement to a medical card for those aged 70 or over is €700 (gross) per week (€36,500 per year) for a single person and €1,400 (gross) per week (€73,000 per year) for a couple.
Any savings and similar investments up to €36,000 (single)/€72,000 (couple) will be disregarded when assessing means and only interest from savings or similar investments above these figures will be considered as income. The relevant portion of savings and similar investments will be assessed on the income calculated at a notional interest rate (currently 5%), based on the prevailing interest rates at the time of application. The Health Service Executive's (HSE) Central Application Unit will review the notional rate on a quarterly basis.
Alternatively, where an applicant wishes to have the actual interest from savings/investments considered, then the HSE will apply this approach and use the most beneficial option in favour of the applicant, subject to submission of the appropriate certificates from the relevant institutions. In the case of "longer term" investment accounts, where the interest is only applied at the end of a fixed period, if the applicant so wishes, the HSE will only take account of the interest earned on the date the investment matures.
Hospital Services.
Fergus O'Dowd
Question:118 Deputy Fergus O’Dowd asked the Minister for Health and Children if a hospital place will be provided as a matter of urgency for a person (details supplied) in County Louth; and if she will make a statement on the matter. [12706/09]
As the Deputy's question relates to service matters I have arranged for the question to be referred to the Health Service Executive for direct reply.
Hospital Waiting Lists.
Jan O'Sullivan
Question:119 Deputy Jan O’Sullivan asked the Minister for Health and Children if she will clarify the plan under the new consultants contract to have a single waiting list for all patients, public and private; when this will be implemented; if it will include waiting lists for outpatient appointments; the way it will operate if consultants in the same department of a hospital have opted for different contracts while the hospital operates a single list for that specialty; and if she will make a statement on the matter. [12710/09]
Under the terms of Consultants Contact 2008, consultants will provide outpatient and ambulatory diagnostic services on a ‘one for all' basis, so that all patients are seen at the key entry point to public hospitals on the basis of medical need alone. The Clinical Directors appointed under the new contract will have a key role in ensuring ‘one for all' access. The detailed implementation of this common waiting list is the responsibility of the HSE and I have asked the Executive to examine the issues raised by the Deputy and reply to her directly.
Medical Cards.
Bernard J. Durkan
Question:120 Deputy Bernard J. Durkan asked the Minister for Health and Children when a medical card will issue in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [12745/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
Health Service Allowances.
Bernard J. Durkan
Question:121 Deputy Bernard J. Durkan asked the Minister for Health and Children if a person (details supplied) in County Meath qualifies for mobility allowance; and if she will make a statement on the matter. [12746/09]
As the Deputy's question relates to service matters I have arranged for the question to be referred to the Health Service Executive for direct reply.
Medical Cards.
Richard Bruton
Question:122 Deputy Richard Bruton asked the Minister for Health and Children if her attention has been drawn to the fact that the Health Service Executive will not issue emergency medical card cover to persons who can not work as a result of an assault and that such people face a lengthy wait for approval; her views on a policy change in this area; and if she will make a statement on the matter. [12750/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
Health Service Personnel.
Michael McGrath
Question:123 Deputy Michael McGrath asked the Minister for Health and Children if she will arrange for a personal document to be issued from the Health Service Executive in respect of a person (details supplied) in County Cork. [12751/09]
As this is a service matter it has been referred to the HSE for direct reply.
Health Services.
Finian McGrath
Question:124 Deputy Finian McGrath asked the Minister for Health and Children if she will support matters (details supplied). [12759/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
Mental Health Services.
Finian McGrath
Question:125 Deputy Finian McGrath asked the Minister for Health and Children if she will respond to a query (details supplied). [12760/09]
As this is a service matter the question has been referred to the HSE for direct reply.
Air Services.
Phil Hogan
Question:126 Deputy Phil Hogan asked the Minister for Transport his views on halving the cost of bonding for travel agents; and if he will make a statement on the matter. [12654/09]
Statutory responsibility for regulation of the travel trade rests with the Commission for Aviation Regulation.
As the existing legislative framework for the regulation of the travel trade has been in existence since 1982 in May last year I asked the Commission for Aviation Regulation, to undertake a comprehensive review of the travel trade legislation. The purpose of the review was to assess the operation of the current regulatory arrangements and to recommend any reforms that may be warranted. Following an extensive consultation process, the Commission submitted their report to me on 30 December 2008 which I have published on my Department's website www.transport.ie.
I am currently examining the Commissions findings and recommendations and I am consulting with my colleague, the Tánaiste and Minister for Enterprise Trade and Employment, on the report's findings in the context of consumer protection policy generally.
Taxi Regulations.
Thomas P. Broughan
Question:127 Deputy Thomas P. Broughan asked the Minister for Transport his views on recent proposals from the Joint Committee on Transport on reforming the regulation of the taxi industry, including the introduction of a cap or moratorium on the issuing of taxi licences; and if he will make a statement on the matter. [12657/09]
I understand that the Joint Committee on Transport has not finalised its proposals relating to the taxi industry. When they become available I will consider them insofar as they relate to my statutory responsibilities.
Supreme Court Judgments.
Denis Naughten
Question:128 Deputy Denis Naughten asked the Minister for Justice, Equality and Law Reform further to Parliamentary Question No. 871 of 17 June 2008, if all outstanding judgments are resolved; and if he will make a statement on the matter. [12630/09]
Further to my reply to Parliamentary Question No. 871 of 17 June 2008, I wish to inform the Deputy that the Supreme Court has delivered judgments in all eight IBC/05 test cases which were before the Court.
Of the 136 Judicial Review applications referred to in my previous reply, some 124 have been resolved. The remaining cases are due for hearing in the High Court in the first week of May.
Garda Investigations.
Lucinda Creighton
Question:129 Deputy Lucinda Creighton asked the Minister for Justice, Equality and Law Reform the reason there has been no proper investigation into the case of a person (details supplied) in Dublin 6. [12644/09]
I have requested a report from the Garda authorities in relation to the matter referred to by the Deputy. I will contact the Deputy again when the report is to hand.
Citizenship Applications.
Paul Nicholas Gogarty
Question:130 Deputy Paul Gogarty asked the Minister for Justice, Equality and Law Reform when a decision will be made on the application for citizenship by naturalisation of a person (details supplied) in County Dublin. [12653/09]
An application for a certificate of naturalisation from the person referred to in the Deputy's Question was received in the Citizenship Division of my Department in February 2008.
Officials in that Section inform me that on examination of the application submitted by the person concerned it was determined that she did not meet the statutory residency requirements as set out in the Irish Nationality and Citizenship Act, 1956, as amended. The person in question was informed of this in a letter issued to her via her legal representatives on 22 August, 2008.
It is open to the person in question to lodge a new application if and when she is in a position to meet the statutory requirements.
Residency Permits.
Tom Hayes
Question:131 Deputy Tom Hayes asked the Minister for Justice, Equality and Law Reform when a decision on an application for residency will be made on behalf of a person (details supplied) in County Kildare. [12660/09]
The person concerned applied for asylum in the State on 8 September 2006. Her application was refused following consideration of her case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 6 July 2007, that the Minister proposed to make a Deportation Order in respect of her. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why she should be allowed to remain temporarily in the State. In addition, she was notified of her entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations, 2006 (S.I. No. 518 of 2006). The person concerned submitted an application for Subsidiary Protection in the State in accordance with these Regulations and this application is under consideration at present. When consideration of this application has been completed, the person concerned will be notified in writing of the outcome.
In the event that the Subsidiary Protection application is refused, the case file of the person concerned, including all representations submitted, will then be considered under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement. When this latter consideration has been completed, the case file of the person concerned is passed to me for decision.
Prison Committals.
Charles Flanagan
Question:132 Deputy Charles Flanagan asked the Minister for Justice, Equality and Law Reform the number of persons who have been sent to prison for defaulting on loan repayments and failure to pay fines in each of the years 2005 to date in 2009; and if he will make a statement on the matter. [12704/09]
It has not been possible to retrieve the required statistical information in the timeframe available. This will be forwarded to the Deputy in due course.
Prison Accommodation.
Martin Ferris
Question:133 Deputy Martin Ferris asked the Minister for Justice, Equality and Law Reform if it is the case that cells in Mountjoy Prison which have recently become empty are being kept free for people who may be arrested in possible civil unrest as a consequence of the budgetary measures being contemplated by the Government. [12711/09]
I can advise the Deputy that Mountjoy Prison is currently operating at a level over its bed capacity. All cells in this institution that can be occupied are being occupied.
Asylum Applications.
Bernard J. Durkan
Question:134 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [12717/09]
I refer the Deputy to Parliamentary Questions No. 163 of Thursday 13 November 2008, No. 844 of Wednesday 24 September 2008 and No. 242 of Thursday 3 April 2008 and the written Replies to those Questions. The person concerned arrived in the State on 25 April 2003 and applied for asylum. His application was refused following consideration of his case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 16 May 2005, that the Minister proposed to make a Deportation Order in respect of him. He was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why he should be allowed to remain temporarily in the State.
Representations have been received on behalf of the person concerned and these representations will be fully considered, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, before the file is passed to me for decision.
Bernard J. Durkan
Question:135 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in County Louth; and if he will make a statement on the matter. [12718/09]
I refer the Deputy to Parliamentary Question No. 244 of Thursday 15 May 2008 and the written Reply to that Question. The person concerned arrived in the State on 3 December 2003 and applied for asylum. His application was refused following consideration of his case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 14 March 2005, that the Minister proposed to make a Deportation Order in respect of him. He was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why he should be allowed to remain temporarily in the State. Following consideration of his case, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, a Deportation Order was signed in respect of the person concerned on 3 July 2006. This Deportation Order was formally served on the person concerned by letter dated 11 August 2006. This communication also notified the person concerned of the requirement that he present himself at the Offices of the Garda National Immigration Bureau on 29 August 2006 to make arrangements for his removal from the State.
Subsequently, on 14 August 2006, the legal representative of the person concerned requested that the Deportation Order made in respect of the person concerned be revoked, in accordance with the provisions of Section 3(11) of the Immigration Act 1999 (as amended). Following consideration of this request, the Deportation Order was affirmed on 17 October 2006. The person concerned was notified of this decision by letter dated 14 November 2006 and was also notified of the requirement that he present himself at the Offices of the Garda National Immigration Bureau on 23 November 2006 in order to make arrangements for his removal from the State.
The person concerned subsequently submitted an application under Regulation 4(2) of the European Communities (Eligibility for Protection) Regulations, 2006 (Statutory Instrument No. 518 of 2006) requesting that the Minister consider an application for Subsidiary Protection in the State from the person concerned. Following consideration of this application, the person concerned was notified, by letter dated 18 March 2008, that the Minister had decided to exercise his discretion to allow the person concerned to make an application for Subsidiary Protection. This application is under consideration at present. When consideration of this application has been completed, the person concerned will be notified in writing of the outcome.
Pending the determination of the Subsidiary Protection application, the Deputy can be assured that the Deportation Order will not be enforced.
Bernard J. Durkan
Question:136 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for family reunification in respect of a person (details supplied) in Dublin 15; and if he will make a statement on the matter. [12719/09]
I am informed by the immigration Division of my Department that the person in question made a Family Reunification application on behalf of his wife and two sons in December 2003. The application was forwarded to the Refugee Applications Commissioner for investigation as required under Section 18 of the Refugee Act 1996. This investigation was completed and the Commissioner forwarded a report to my Department.
The application was refused on the 22 August 2007 and a letter outlining the reasons for the refusal issued on the same date. A copy of this letter was issued to the applicant's legal representative on the same day. There is no provision under Section 18 of the Refugee Act 1996 to appeal the decision of an application for Family Reunification. Each application is processed on its own merits and the decision reached is based on the information submitted. If the person in question has significant new information it is open to them to submit a new application for Family Reunification to my Department.
Bernard J. Durkan
Question:137 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for refugee status and leave to remain in respect of a person (details supplied) in Dublin 8; and if he will make a statement on the matter. [12720/09]
The person concerned applied for asylum in the State on 22 February 1999. Her application was refused following consideration of her case by the then Asylum Division of the Department of Justice, Equality and Law Reform and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 26 February 2002, that the Minister proposed to make a Deportation Order in respect of her. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why she should be allowed to remain temporarily in the State.
Representations were submitted on behalf of the person concerned and these representations will be fully considered, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, before the file is passed to me for decision. I am assured by my officials that this case will now be brought to a conclusion as speedily as possible. The Deputy might wish to note that the person concerned is not the holder of Irish Citizenship.
Citizenship Applications.
Bernard J. Durkan
Question:138 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for citizenship in respect of a person (details supplied) in Dublin 7; and if he will make a statement on the matter. [12721/09]
I refer the Deputy to my reply to Parliamentary Question No. 134 on 23 October 2008. The position remains as stated.
Asylum Applications.
Bernard J. Durkan
Question:139 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in Dublin 22; and if he will make a statement on the matter. [12722/09]
The person concerned is the infant daughter of a person who had made an application for asylum in the State. On 23 January 2008, an application for asylum in her own right was made on behalf of this child by her mother. This application was refused following consideration of the case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 6 March 2009, that the Minister proposed to make a Deportation Order in respect of her. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why she should be allowed to remain temporarily in the State. In addition, she was notified of her entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations, 2006 (S.I. No. 518 of 2006).
The 15 working day period referred to in my Department's letter expires on 2 April 2009. It is open to the person concerned to make representations and/or apply for Subsidiary Protection within that period. In any event, a final decision on this case will not be made prior to the expiry of the 15 working day period referred to.
Bernard J. Durkan
Question:140 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in Dublin 22; and if he will make a statement on the matter. [12723/09]
The person concerned and her two children arrived in the State on 27 November 2007 and applied for asylum. The children were included in their mother's application for asylum. The asylum application was refused following consideration of the case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 6 March 2009, that the Minister proposed to make Deportation Orders in respect of her and her children. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of Deportation Orders or of making representations to the Minister setting out the reasons why she and her children should be allowed to remain temporarily in the State. In addition, she was notified of her entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations, 2006 (S.I. No. 518 of 2006).
The 15 working day period referred to in my Department's letter expires on 2 April 2009. It is open to the person concerned to make representations and/or apply for Subsidiary Protection within that period. In any event, a final decision on this case will not be made prior to the expiry of the 15 working day period referred to.
Residency Permits.
Bernard J. Durkan
Question:141 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in County Dublin; and if he will make a statement on the matter. [12724/09]
I would refer the Deputy to my reply to Dáil Question No 133 on Thursday 5th March 2009. This case is currently under consideration. My Department is awaiting updated medical reports from the applicant's legal representatives who have informed us that their client is currently awaiting an appointment with her consultant.
Asylum Applications.
Bernard J. Durkan
Question:142 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to a residency and asylum application in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [12725/09]
The person concerned arrived in the State on 5 June 2001 in the company of her guardian and was initially included as part of her guardian's asylum application which was lodged on 6 June 2001. This asylum application was the subject of a formal refusal decision on 22 May 2003. Subsequently, on 11 December 2003, the Minister signed Deportation Orders in respect of the guardian and the person concerned. The person concerned became ‘of age' during the course of the asylum process.
Judicial Review Proceedings were initiated in the High Court on behalf of the person concerned in early 2004. These Proceedings were subsequently ‘settled' with the consequence that the Deportation Order made in respect of the person concerned was revoked and she was enabled to make a separate asylum application in her own right which she duly did, on 19 February 2008. The person concerned gave birth to a child in the State in 2005 and this child was included on her asylum application. The asylum application was refused following consideration of the case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 29 July 2008, that the Minister proposed to make Deportation Orders in respect of her and her child. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of Deportation Orders or of making representations to the Minister setting out the reasons why she and her child should be allowed to remain temporarily in the State. In addition, she was notified of her entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations, 2006 (S.I. No. 518 of 2006).
Representations have been submitted on behalf of the person concerned and these representations will be fully considered, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, before the case file of the person concerned is passed to me for decision.
Bernard J. Durkan
Question:143 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in County Meath; and if he will make a statement on the matter. [12726/09]
The person concerned applied for asylum on 31 May 2004. His application was refused following consideration of his case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 12 May 2005, that the Minister proposed to make a Deportation Order in respect of him. He was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why he should be allowed to remain temporarily in the State.
Representations were received on his behalf. Following consideration of his case, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, a Deportation Order was signed in respect of the person concerned on 4 May 2006. Notice of this Order was served by registered letter dated 19 May 2006 requiring the person concerned to present himself at the Offices of the Garda National Immigration Bureau (GNIB) on a specified date in order to make arrangements for his deportation from the State.
The person concerned initiated Judicial Review Proceedings in the High Court with the consequence that the Deportation Order was revoked on 17 July 2007 and the person concerned was invited to submit fresh representations as to why he should be allowed to remain temporarily in the State. Representations were received on behalf of the person concerned and, following consideration of these representations, the Minister signed a Deportation Order in respect of the person concerned on 29 August 2007. Notice of this Order was served by registered letter dated 18 October 2007 requiring the person concerned to present himself at the Offices of the Garda National Immigration Bureau (GNIB) on a specified date in order to make arrangements for his deportation from the State. This Order was subsequently revoked following the submission of further representations on behalf of the person concerned, through his legal representative. These representations will now be considered under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement. When this consideration has been completed, the case file of the person concerned is passed to me for decision.
Bernard J. Durkan
Question:144 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in County Meath; and if he will make a statement on the matter. [12727/09]
The person concerned and her two children applied for asylum on 17 February 2005. The two children were included on their mother's asylum application. Her application was refused following consideration of her case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 28 September 2005, that the Minister proposed to make Deportation Orders in respect of her and her children. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of Deportation Orders or of making representations to the Minister setting out the reasons why she and her children should be allowed to remain temporarily in the State. Representations were received on her behalf. Following consideration of her case, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, Deportation Orders were signed in respect of the person concerned and her children on 4 May 2006. Notice of these Orders was served by registered letter dated 19 May 2006 requiring the person concerned and her two children to present themselves at the Offices of the Garda National Immigration Bureau (GNIB) on a specified date in order to make arrangements for their deportation from the State.
The person concerned initiated Judicial Review Proceedings in the High Court with the consequence that the person concerned was invited to submit fresh representations as to why she and her children should be allowed to remain temporarily in the State. Representations have been received on behalf of the person concerned and these representations will be considered under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement. When this consideration has been completed, the case file of the person concerned is passed to me for decision.
Bernard J. Durkan
Question:145 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for residency in respect of a person (details supplied) in County Meath; and if he will make a statement on the matter. [12728/09]
The person concerned, an infant child, was born in the State in early 2006 and an application for asylum was made on her behalf on 26 May 2006. Her asylum application was refused following consideration of her case by the Office of the Refugee Applications Commissioner.
Arising from the refusal of her asylum application, and in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 30 January 2009, that the Minister proposed to make a Deportation Order in respect of her. She was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why she should be allowed to remain temporarily in the State. In addition, she was notified of her entitlement to apply for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations, 2006 (S.I. No. 518 of 2006). The person concerned submitted an application for Subsidiary Protection in the State in accordance with these Regulations and this application is under consideration at present. When consideration of this application has been completed, the person concerned will be notified in writing of the outcome.
In the event that the Subsidiary Protection application is refused, the case file of the person concerned, including all representations submitted, will then be considered under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement. When this latter consideration has been completed, the case file of the person concerned is passed to me for decision.
Bernard J. Durkan
Question:146 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for family reunification in respect of a person (details supplied) in Dublin 15; and if he will make a statement on the matter. [12729/09]
I am informed by the immigration Division of my Department that the person in question made a Family Reunification application on behalf of his wife and son in January 2005. The application was forwarded to the Refugee Applications Commissioner for investigation as required under Section 18 of the Refugee Act 1996. This investigation was completed and the Commissioner forwarded a report to my Department.
A decision on the application was made on the 1 October 2007 refusing the request and a letter outlining the reasons for the refusal issued on the same date to the applicant. A copy of this letter was subsequently issued to the applicant's solicitor on the 21 July 2008. There is no provision under Section 18 of the Refugee Act 1996 to appeal the decision of an application for Family Reunification. Each application is processed on its own merits and the decision reached is based on the information submitted.
If the person in question has significant new information it is open to them to submit a new application for Family Reunification to my Department.
Bernard J. Durkan
Question:147 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the current or expected asylum and refugee status in respect of a person (details supplied) in County Meath; and if he will make a statement on the matter. [12730/09]
If an application for asylum has been made by the person concerned, the Deputy will of course be aware that it is not the practice to comment on asylum applications that are pending.
Bernard J. Durkan
Question:148 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform if an appeal will be given in respect of a person (details supplied) in County Meath; and if he will make a statement on the matter. [12731/09]
The person referred to by the Deputy applied for asylum on 06/03/2007. The claim was assessed by the Refugee Applications Commissioner who concluded that the person concerned did not meet the criteria for recognition as a refugee. The Commissioner's recommendation was communicated to him by letter dated 25/07/2007. This communication advised the person of his entitlement to appeal the Commissioner's recommendation to the Refugee Appeals Tribunal, which he duly did.
The Refugee Appeals Tribunal considered the person's appeal, following which the Tribunal affirmed the Commissioner's earlier recommendation to reject his claim. The outcome of the appeal was made known to the applicant by letter dated 09/03/2009.
In accordance with normal procedures, the applicant's file will be forwarded to my Department's Ministerial Decisions Unit for final processing of the asylum claim. A letter will issue to him from my Department advising him formally that his asylum claim has been rejected and affording him three options as follows:
1. Return home voluntarily
2. Consent to the making of a deportation order, or
3. Make written representations to me within 15 working days for temporary leave to remain in the State and/or make an application for subsidiary protection under the European Communities (Eligibility for Protection) Regulations 2006 (SI No. 518 of 2006).
Citizenship Applications.
Bernard J. Durkan
Question:149 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in regard to an application for naturalisation in respect of a person (details supplied) in Dublin 22; and if he will make a statement on the matter. [12732/09]
I refer the Deputy to my reply to Parliamentary Question No. 267 on 3 March 2009. The position remains as stated.
Asylum Applications.
Bernard J. Durkan
Question:150 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to an application for asylum in respect of a person (details supplied) in County Cork; and if he will make a statement on the matter. [12733/09]
The person concerned applied for asylum on 31 January 2005. His application was refused following consideration of his case by the Office of the Refugee Applications Commissioner and, on appeal, the Refugee Appeals Tribunal.
Subsequently, in accordance with Section 3 of the Immigration Act, 1999 (as amended), the person concerned was informed, by letter dated 21 February 2006, that the Minister proposed to make a Deportation Order in respect of him. He was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out the reasons why he should be allowed to remain temporarily in the State.
Representations have been submitted on behalf of the person concerned and these representations will be fully considered, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as amended) on the prohibition of refoulement, before the file is passed to me for decision.
Proposed Legislation.
David Stanton
Question:151 Deputy David Stanton asked the Minister for Justice, Equality and Law Reform the progress he has made in drafting the Sale of Alcohol Bill; when he expects to publish same; and if he will make a statement on the matter. [12756/09]
The Government Legislation Programme published on 26 January provides for publication of the Sale of Alcohol Bill in 2009. The Bill will modernise and streamline the law relating to the sale and consumption of alcohol by repealing the Licensing Acts 1833 to 2008, as well as the Registration of Clubs Acts 1904 to 2008, and replacing them with updated provisions.
Michael McGrath
Question:152 Deputy Michael McGrath asked the Minister for Justice, Equality and Law Reform the position in relation to the proposed Civil Partnership Bill. [12764/09]
The position is as outlined in my reply to Parliamentary Question Number 244 of 3 March 2009.
Judicial Appointments.
Brian O'Shea
Question:153 Deputy Brian O’Shea asked the Minister for Justice, Equality and Law Reform his proposals to appoint more judges; and if he will make a statement on the matter. [12773/09]
The allocation of judicial resources is, in the first instance, a matter for the Presidents of the Courts. I am guided by the Presidents as to the need for additional judges, subject to Exchequer constraints. It should be noted, however, that judicial numbers have been significantly increased in recent years. Fourteen additional judges were appointed under the provisions of the Courts and Court Officers (Amendment) Act 2007: six to the District Court, four to the Circuit Court and six to the High Court. Furthermore, three additional District Court judges have recently been appointed following the enactment of the Civil Law (Miscellaneous Provisions) Act 2008. These additional judges constitute a significant increase in judicial resources and should positively impact on delays throughout the courts system.
Since 1997 the judges allocated to the court jurisdictions have increased as follows:
|
1997 |
2009 |
|
|
Supreme Court |
8 |
8* |
|
High Court |
20 |
37** |
|
Circuit Court |
26 |
38 |
|
District Court |
47 |
64 |
*The number of ordinary Supreme Court judges increased from four to seven under the Court and Court Officers Act 1995, thus bringing the total membership, including the Chief Justice, up to eight.
**The Court and Court Officers (Amendment) Act, 2007 provides that the number of High Court Judges shall be 36. However, this may be exceeded in some circumstances subject to the special provisions of the Law Reform Commission Act 1975 and the Garda Síochána Act 2005.
Dormant Accounts Fund.
Jack Wall
Question:154 Deputy Jack Wall asked the Minister for Community, Rural and Gaeltacht Affairs the position in relation to the dormant account funding for 2009; the number of applications received for such funding; the number of applications received for such funding in 2008; the funding allocated but not drawn down in 2008; the position of such applications; and if he will make a statement on the matter. [12674/09]
Funding is provided from the Dormant Accounts Fund (DAF), through the votes of relevant Departments, to tackle disadvantage and to assist persons with a disability. Details in respect of the number of applications are set out in my reply to question number 55 answered on 4th March 2009. Since early 2006, all projects have been approved by the Government and managed by the Government Department with responsibility for the areas assisted.
In 2006, 2007 and 2008, my Department has managed an annual measure to support priority projects in RAPID areas valued at €7.5 million per annum; in 2006 my Department managed measures to provide recreation and personal development opportunities for disadvantaged young people valued at €1.12 million and €3.95 million to fund two projects under the Flagships Measure. In 2008, €2m was provided for a substance misuse measure. Details in respect of funding yet to be drawn down by projects is set out below:
|
Measure |
No of Projects Approved |
Projects in Receipt of Funds |
Projects NOT in Receipt of Funds |
Value of Projects not yet in receipt of funds |
|
€m |
||||
|
RAPID Additionality |
630 |
600 |
30 |
1.25 |
|
Flagships |
2 |
1 |
1 |
2.50 |
|
Recreational & Development — Disadvantaged Youth |
51 |
48 |
3 |
0.03 |
There are a number of reasons why groups do not draw down the funding they have been granted. For example, some groups may decide that the project is no longer necessary, viable or a priority for them. Others experience capacity issues in relation to their ability to implement the project. Issues also arise in relation to compliance with public procurement rules, planning permission and access to additional funding to complete the project or to meet other undertakings. All projects are kept under review and where appropriate, offered support. Where it is agreed that a project will not proceed or draw down the full amount of funds approved, procedures, including consultation with the project promoters, are in place to decomit the funding approved.
With respect to 2009, I have no proposals to make any further allocations to specific measures until information is available on the value of funds liable to transfer from financial institutions later this year. Details of the individual grants and organisations that have been approved for support from the Fund are available on the Department's website, www.pobail.ie.
Community Development.
Jack Wall
Question:155 Deputy Jack Wall asked the Minister for Community, Rural and Gaeltacht Affairs the position of the programme for grants for locally based community and voluntary organisations; the number of applications received to date in 2009; the position of such applications; if funding is available to address such applications; if all of the funding allocated in 2008 has been drawn down; if not, the position of such funding; and if he will make a statement on the matter. [12675/09]
I would refer the Deputy to my replies to questions number 43 on 4th March and questions numbered 304, 305 and 306 on 10th March 2009 concerning the suspension of this Programme.
To date, nearly 500 applications have been received. Of these, around 250 have been either recommended for funding or found to be ineligible or incomplete. Six applications were withdrawn. The remaining projects are currently at different stages of the appraisal process. Going on experience thus far, I would expect that about three-quarters of these outstanding applications would be recommended for funding.
However, as I have previously outlined, it will not be possible to fund all successful applications given the current economic circumstances and the need to prioritise funding for other areas of activity. Of the €9 million provided for the programme 2008, some €4.2 million was drawn down by projects and to meet the costs of administration. Outstanding commitments to projects at year-end amounted to nearly €2.5 million. The Deputy will appreciate that organisations draw funding over a period of months depending on progress on the delivery of a particular project. Any funds not drawn down are used to meet the cost of other organisations awarded allocations under the Programmes.
Departmental Agencies.
Jack Wall
Question:156 Deputy Jack Wall asked the Minister for Community, Rural and Gaeltacht Affairs the number of agencies or bodies under the control of his Department; the changes or alterations made to date or planned in regard to Budget 2009 directive in regard to such groups; if legislation is necessary in regard to amalgamations or in regard to reductions of such groups; and if he will make a statement on the matter. [12676/09]
The Deputy will appreciate that matters in relation to the forthcoming Budget remain to be agreed by Government and presented to the Oireachtas. Any consequential measures as may relate to bodies within the ambit of my Department, can be subsequently addressed, as appropriate.
Social Welfare Benefits.
Róisín Shortall
Question:157 Deputy Róisín Shortall asked the Minister for Social and Family Affairs her views on whether it is acceptable that a person (details supplied) in Dublin 11 who applied for jobseeker’s allowance in December 2008 has not been awarded payment; and if she will intervene to ensure that the claim is assessed and processed without further delay. [12655/09]
The person concerned made a claim for Jobseeker's Allowance at Finglas local office on 10 December 2008. His application was forwarded to a social welfare inspector on 17 December 2008 so that an assessment of his means could be conducted. The claim papers are with the inspector. All the required documentation has been received from the person concerned. The present position is that the assessment of means will be completed by the middle of the week. The claim will then be submitted to a deciding officer for decision before the end of the week and the person will be advised of the outcome. The reason for the delay in conducting the means assessment is that the Live Register has increased significantly in recent months in the Finglas office. The absence of an inspector due to illness also contributed to the delay. All efforts are being made to ensure cases are dealt with as quickly as possible. If a person feels that he or she has insufficient means to meet his or her needs, it is open to him or her to apply for supplementary welfare allowance. This allowance is administered by the Health Services Executive through the community welfare officers at local health centres.
Information Technology.
Deirdre Clune
Question:158 Deputy Deirdre Clune asked the Minister for Social and Family Affairs the reason recipients of payments from her Department still receive payments on a manual basis; her views on phasing out such payments in favour of an electronic system; and if she will make a statement on the matter. [12663/09]
The Department supports the Government's policy of aiming to facilitate the greater use of electronic payment systems in the economy in the interests of developing a world-class payments environment in Ireland. Our payment strategy is designed to ensure that cost-effective arrangements are in place for making payments to social welfare customers by using a range of payment options and to ensure that new payment facilities are made available to customers as they arise. The Department is implementing a three-year strategy to change paper-based payment instruments to electronic payments at post offices, banks and other financial institutions, including certain credit unions that have financial regulatory approval. Some 84% of customers receive their payment electronically direct to their post office or financial institution. The remaining personalised payable order books will be changed to electronic payment by the end of September 2009. Plans are under way to change cheque payments to electronic payment at a post office or a financial institution over the next 12 months. Of the 1 million payments issued each week, a small number is made by manual cheque. A facility to make such payments by an electronic system is being investigated.
Social Welfare Benefits.
Mary Upton
Question:159 Deputy Mary Upton asked the Minister for Social and Family Affairs her views on correspondence (details supplied); and if she will make a statement on the matter. [12687/09]
A range of education and employment supports are available to people who are in receipt of welfare payments. These initiatives, including the back to work allowance and the back to education allowance, are designed to assist and facilitate people on such payments to return to the active labour force. The back to work allowance scheme is designed to assist and encourage the long-term unemployed, lone parents, people with disabilities and other social welfare recipients to return to the active labour force. The scheme's two strands are the back to work enterprise allowance for the self-employed and the back to work allowance for employees. The allowances provide a monetary incentive for long-term social welfare dependants and make their return to work financially attractive and viable. This scheme has been subject to review and modification over the years. The requirement to be in receipt of a relevant social welfare payment for a minimum period of time has always been a feature of it. While those who have been unemployed for a short time are not the main focus of the scheme, its qualifying conditions will continue to be monitored in the context of the changing economic circumstances.
The national employment action plan, which has been in operation since 1998, is the main welfare-to-work measure of the Government. It has proven successful in helping people on the live register to get back into employment. It is a preventive strategy that provides for systematic engagement of the employment services with the unemployed. The operation of the action plan involves the referral to FÁS of people on the Live Register who have been unemployed for a certain period. Everyone who is approaching three months on the Live Register is referred to FÁS for interview with a view to job placement or an offer of training. FÁS employment services, together with local employment services, have put in place measures designed to provide increased capacity for the increase in referrals and the increased number of unemployed people who are seeking job search assistance voluntarily. The implementation of these measures has increased the monthly capacity of job search services from 6,500 to 12,250 persons per month. Arrangements also exist whereby people who are employed for up to three days in a week may claim jobseeker's payment in respect of the remainder of the week, subject to being available for full-time work. It may be noted that if there is an employment relationship between a worker and an employer, that relationship may dictate that the full range of rights and protections afforded to employees, including minimum wage, will apply. The Department will continue to work closely with the Department of Enterprise, Trade and Employment and FÁS to improve the services available for progressing people who depend on social welfare progress to education, training and employment.
Money Advice and Budgeting Service.
Terence Flanagan
Question:160 Deputy Terence Flanagan asked the Minister for Social and Family Affairs if she will transfer surplus civil servants on a temporary basis to the Money Advice and Budgetary Service in Coolock, Dublin 5 to deal with the six week waiting list to meet a money advisor; and if she will make a statement on the matter. [12695/09]
The Money Advice and Budgeting Service, MABS, is the main Government-funded service which provides assistance to people who are over-indebted and need help and advice in coping with debt problems. There are 53 independent MABS companies with voluntary boards of management operating the local MABS services from 65 locations throughout the country. In addition, the MABS National Telephone Helpline is available from 9 a.m. to 8 p.m., Monday to Friday, at lo-call number 1890 283 438. Budgeting and money management information can be accessed 24 hours a day at www.mabs.ie. In 2009, almost €18 million has been provided to assist the MABS in dealing with its workload. Six additional full-time and part-time staff have been allocated to the local services. The capacity of the telephone helpline has been strengthened. MABSndl, which is the national support company, has introduced a number of community education and other initiatives to assist the local services in managing their increased caseloads. Some 252 money advice staff are employed throughout the country in the MABS. Dublin north-east MABS has four money advice staff at present. Applications for funding for additional staff are being kept under review should further funding become available for additional posts. There are no plans to transfer civil servants to the MABS at this time.
All MABS companies, including Dublin north-east MABS, operate an appointment system for meeting clients. Clients with urgent difficulties are prioritised for attention and dealt with promptly. Less urgent cases are referred to the telephone helpline and to the MABS website. Over 90% of callers to the helpline find that their money management and budgeting issues can be resolved with the assistance of the helpline advisor. Some 10% of callers are referred to the local MABS for appointment. In addition, the helpline is assisting local services, including Dublin north-east MABS, to manage their appointment lists by providing an initial preliminary MABS service to clients and ongoing support while they await their appointment with their local money advisor. The MABS advises that people coping with debt difficulties should take early action. An approach to the MABS can be the first positive step in addressing debt difficulties. The MABS provides a high quality personal service to members of the public that helps many to cope with and overcome the burden of indebtedness that can have such an impact on their lives and those of their families.
Social Welfare Benefits.
Bernard J. Durkan
Question:161 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when rent support will be offered in respect of persons (details supplied) in County Kildare; and if she will make a statement on the matter. [12747/09]
Rent supplement is administered on behalf of the Department by the community welfare service of the Health Service Executive as part of the supplementary welfare allowance scheme. The purpose of the rent supplement scheme is to provide short-term income support to eligible persons living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The HSE has advised that the people concerned are living in local authority housing and therefore have no entitlement to rent supplement. They should contact the local authority with regard to any concerns they have about their rent payment.
Bernard J. Durkan
Question:162 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs the position in relation to an application for supplementary welfare allowance in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [12748/09]
The supplementary welfare allowance scheme, which is administered on behalf of the department by the community welfare division of the Health Service Executive, is designed to provide immediate and flexible assistance for those in need who do not qualify for payment under other State schemes.
The Executive has advised that the person concerned is in receipt of supplementary welfare allowance. The community welfare officer recently asked the person concerned to provide additional information and also asked her to call to the local health centre to collect a payment. The community welfare officer tried to contact the person concerned a number of times but she has not been answering the contact telephone number provided by her.
The person concerned should call to the local health centre immediately to discuss her supplementary welfare allowance claim with the community welfare officer.
Bernard J. Durkan
Question:163 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs if mortgage assistance will be offered in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [12749/09]
The supplementary welfare allowance scheme, which includes mortgage interest supplement, is administered on behalf of the department by the community welfare division of the Health Service Executive.
The Executive has advised that the person concerned was in receipt of mortgage interest supplement from 2 July 2007 to 31 December 2008 when payment ceased as she returned to full-time employment on 3 January 2009. She left employment on 14 January 2009 on health grounds.
The Executive has advised that mortgage interest supplement has been re-instated with effect from January 2009. Arrears of payment due will issue to the person concerned shortly.
Social Welfare Code.
Richard Bruton
Question:164 Deputy Richard Bruton asked the Minister for Social and Family Affairs if she will extend occupational injury cover to self-employed people or another protection to deal with accidents; and if she will make a statement on the matter. [12752/09]
Workers are insured under the Social Welfare Acts as either employed or self-employed contributors. All workers, both employed and self-employed, are obliged to pay PRSI contributions as a percentage of their personal reckonable income.
The range of benefits and pensions to which different groups of workers may establish entitlement reflects the risks associated with the nature of their work. This in turn reflects the rate of contribution payable. Self-employed people aged between 16 and 66 years are liable for PRSI at the Class S rate of 3% and are consequently eligible for a narrower range of benefits than general employees who, together with their employers, pay a total social insurance contribution of 14.05%, excluding levies, under the full-rate PRSI Class A. These contributions provide entitlement to a range of contingency-based payments under various social insurance schemes.
PRSI Class S contributors are entitled to the following payments:
the Widow's or Widower's (Contributory) Pension;
the Guardian's Payment (Contributory);
the State Pension (Contributory);
Maternity Benefit;
Adoptive Benefit, and
the Bereavement Grant.
Self-employed workers are not insured against short-term benefits such as illness and jobseeker's payments. Neither are they covered for Injury Benefit which is one of the benefits available under the Occupational Injuries Scheme. This reflects the need for coverage for various contingencies, the rate of contributions that self-employed persons pay, the practicalities of administering and controlling access to benefit payments, and the annualised system of contributions that these same persons enjoy.
A system of separate arrangements for employed and self-employed workers within a social insurance context is common in other European social protection systems.
There are no immediate plans to expand coverage for Class S contributors. However, they may qualify for the means tested Disability Allowance if the illness/injury is expected to last for at least one year.
Pension Provisions.
Richard Bruton
Question:165 Deputy Richard Bruton asked the Minister for Social and Family Affairs the obligations of a company (details supplied) to make up any deficit in the pension fund as they withdraw from their operations here; and if she will make a statement on the matter. [12753/09]
Defined benefit (DB) pension schemes are required to comply with the funding standard provision set out in the Pensions Act. This funding standard requires defined benefit pension schemes to maintain sufficient assets to enable them discharge accrued liabilities. Where schemes do not satisfy the Funding Standard, the sponsors/trustees must submit a funding proposal to the Pensions Board to restore full funding within three years.
The Government is conscious of the pressures on employers sponsoring pension schemes, and scheme trustees, arising from the very significant losses incurred by pension funds over the last year. While 81% of DB pension schemes satisfied the funding standard at the end of 2007, it is estimated that in excess of 90% of DB pension schemes are in deficit at the moment.
As the deputy is aware, in recognition of the current market difficulties and the challenges facing pension trustees, the Government recently announced a number of short-term measures aimed at easing the pressures on many DB schemes. I believe that these measures will assist schemes currently in difficulty and will help to ensure the best outcomes for the scheme members.
However, it must be acknowledged that in the current economic climate, a certain number of companies will cease trading and this may have an impact on their pension schemes. In the case of the company referred to by the Deputy, it is understood that the employees' DB pension scheme is currently in deficit.
Employers who provide DB pension schemes have no legal obligation to make up any shortfalls that arise in their funds. However, many employers have been willing to contribute towards such shortfalls.
It is Government policy to support the continuation of DB schemes where possible. The recent measures announced by the Government will ease the pressure on underfunded schemes by allowing more time to recover recent losses.
My Department, together with the Pensions Board, will continue to monitor the situation in relation to the underfunding of DB schemes. In addition, the Government is currently considering a number of options in relation to the ongoing security of occupational pensions. Any decisions in this regard will be made in the context of the National Pensions Framework which will be finalised shortly.
Money Advice and Budgeting Service.
Róisín Shortall
Question:166 Deputy Róisín Shortall asked the Minister for Social and Family Affairs if she will provide MABSIS data for the first two months of 2009 for each Money Advice and Budgeting Service centre in respect of the number of new clients, the number of new clients earning a wage, the number of new clients with a mortgage and the total and average debt owed by new clients when they first presented to MABS. [12763/09]
The Money Advice and Budgeting Service (MABS) provided services to 3,373 new clients in the period to end February 2009. In addition 500 people sought information about budgeting and money management. The MABS National Helpline received approx 4,230 calls to end of February 2009.
National MABS statistics are produced on a monthly basis and individual company statistics are produced quarterly. The national MABS statistics for January/February 2009 show that the majority of new clients were receiving social welfare payments (62%), some 830 (25%) were receiving Jobseekers payments, 525 (16%) were receiving One Parent Family Payment and 164 (4.9%) were in receipt of illness/disability payments. In addition 25% of clients were in employment and 3.9% were self-employed.
Clients mostly lived in rented accommodation, with 24% living in private rented accommodation and 21% in rented local authority accommodation. People with mortgages made up 34% of clients and 7% lived with parents.
The total owed by new clients in February 2009 to creditors, based on the debt they had when they first came to the MABS, amounted to €46.2 million, which works out at an average amount of €13,700 debt per client. Of the total amount of debt 65% was owed to banks/financial institutions, 15% was owed to credit unions, 2% was owed in respect of utilities bills and 2% was owed to moneylenders.
Information on new clients per MABS company up to the end of December 2008 is detailed in the following table.
|
Company |
New clients at 31st December 2008 |
|
Arklow |
253 |
|
Athlone |
188 |
|
Ballymun |
543 |
|
Blanchardstown |
422 |
|
Bray |
574 |
|
Carlow |
677 |
|
Cavan |
205 |
|
Charleville |
111 |
|
Clare |
298 |
|
Clondalkin |
322 |
|
COMAC |
410 |
|
Cork |
970 |
|
North Cork |
384 |
|
West Cork |
288 |
|
North Donegal |
264 |
|
South Donegal |
93 |
|
West Donegal |
25 |
|
Drogheda |
146 |
|
Dublin 12 Area |
242 |
|
Dublin North City |
257 |
|
Dublin North East |
383 |
|
Dublin South East |
181 |
|
Dundalk |
188 |
|
Dundrum/Rathfarnham |
293 |
|
Dun Laoghaire |
411 |
|
Fingal |
224 |
|
Finglas |
482 |
|
North Galway |
347 |
|
South Galway |
602 |
|
Kerry |
684 |
|
Kildare |
457 |
|
Kilkenny |
363 |
|
Laois |
414 |
|
Leitrim |
117 |
|
Liffey South West |
310 |
|
Limerick |
592 |
|
Longford |
151 |
|
North Mayo |
113 |
|
South Mayo |
222 |
|
Meath |
179 |
|
Monaghan |
128 |
|
Mullingar |
191 |
|
Offaly |
223 |
|
Roscommon |
158 |
|
Sligo |
210 |
|
Tallaght |
438 |
|
North Tipperary |
206 |
|
South Tipperary |
546 |
|
Waterford |
624 |
|
West Waterford |
186 |
|
Wexford |
305 |
Social Welfare Benefits.
Willie Penrose
Question:167 Deputy Willie Penrose asked the Minister for Social and Family Affairs if a person (details supplied) in County Westmeath who is just over six months unemployed, and who wishes to start a business, can avail of the back to work allowance; if, in this context changes will be made in order to ensure that people such as this person can obtain same and commence their own businesses; and if she will make a statement on the matter.
The enterprise stream of the back to work allowance (BTWA) scheme is designed to assist people, who are long term dependant on social welfare payments, to take up self-employment. Participants receive a tapered percentage of their social welfare payment over a four year period for those who become self employed and they may also retain entitlement to certain other secondary benefits.
To qualify for the back to work enterprise allowance scheme, the person must receive approval from a partnership company or one of this Department's local facilitators before taking up self-employment. The person must be in receipt of a qualifying social welfare payment for a specified length of time immediately prior to commencing the self-employment. For a person on a Jobseeker's payment the qualifying period is 24 months. The person referred to by the Deputy has been in receipt of Jobseeker's Benefit since September 2008 and, consequently, does not satisfy the eligibility criteria of the scheme.
The conditions of the scheme will continue to be monitored in the light of the changed economic circumstances.
Archaeological Sites.
Tom Hayes
Question:168 Deputy Tom Hayes asked the Minister for the Environment, Heritage and Local Government when a decision will issue on an application for a licence to carry out an archeological dig on a site for a person (details supplied) in County Tipperary. [12661/09]
A licence for the proposed excavation issued on 18 March 2009.
Local Authority Housing.
Frank Feighan
Question:169 Deputy Frank Feighan asked the Minister for the Environment, Heritage and Local Government if he will confirm allocation of €500,000 for Boyle Town Council, County Roscommon in respect of remedial works. [12669/09]
Following my Department's Call for Proposals under the Remedial Works Programme for 2009, I approved five projects for assistance on 30 January 2009, including one at Boyle, Co. Roscommon, the initial projected cost of which was €691,000. My Department has since written to Boyle Town Council requesting, inter alia, a detailed cost plan and details of how anticipated revenue from the sale of houses will impact on the overall cost. The level of funding to be provided for the project will be determined following receipt and consideration of the Council's response.
Water Charges.
Joanna Tuffy
Question:170 Deputy Joanna Tuffy asked the Minister for the Environment, Heritage and Local Government the steps he has taken to opt out of Article 9(1) of the Water Framework Directive that requires the recovery of water charges by Member States starting from 2010, that this will include Ireland having to charge domestic charges, unless Ireland makes a case in writing for opting out of charging for domestic water charges to the European Commission by December 2009; if he will ensure that Ireland formally requests that it opt out in time by December 2009, particularly in view of the fact that he sought a clause providing that member states could opt out from charging for domestic water when the Water Framework Directive was being negotiated by member states; if he will explain what is meant by the statement by the Government to the Commission that he is merely reflecting on the implementation of Article 9; if this statement means he intends that Ireland will introduce water charges from 2010; and if he will make a statement on the matter. [12685/09]
The Water Framework Directive was adopted on 23 October 2000. Article 9(1) of the Directive requires Member States to take account of the principle of the recovery of the cost of water services, including environmental and resource costs. However, Article 9(4) of the same Directive stipulates that a Member State will not be in breach of the Directive if it decides, in accordance with established practices, not to apply these provisions where it does not compromise the purposes and the achievement of the Directive's objectives.
The Local Government (Financial Provisions Act) 1997 removed the authority of water services authorities to levy charges for water services on domestic users. The Water Pricing Policy, subsequently agreed by the Government in November 1998, requires local authorities to recover the full cost of providing water services from the users of these services, with the exception of households using the services for domestic purposes. There is no requirement, therefore, for the Government to take steps to opt out of Article 9(1) given that the established practice at the time of the adoption of the Directive was not to levy charges on domestic users.
Under the Directive, the island of Ireland is divided into eight River Basin Management Districts. Management Plans for these districts must be published no later than 22 December 2009 and submitted to the European Commission within three months of publication. The Management Plans must include details of cost recovery, in accordance with Article 9. Draft River Basin Management Plans for the eight River Basin Districts in Ireland were published in December 2008 by the respective management authorities.
Frank Feighan
Question:171 Deputy Frank Feighan asked the Minister for the Environment, Heritage and Local Government the procedures his Department has in place to assist elderly people who have land and now find under the new metering system they are receiving bills for water due to the fact there must be leaks in the pipes covering their land which can not be identified. [12699/09]
The Government's Water Pricing Policy requires local authorities to recover the cost of providing water services from non-domestic users of these services. The Policy exempts domestic users from charges for water services. As such, landowners are only levied with charges if they are engaged in commercial activity on their property, for example, farming. The policy makes no distinction between different categories of non-domestic users in the application of charges. However, where a supply serves both the domestic and business needs of a consumer, a domestic allowance is applied by the local authority.
To encourage water conservation, Section 54 of the Water Services Act 2007 includes a general duty of care for owners and occupiers to keep water distribution systems leak-free — this duty applies to both domestic and non domestic consumers.
Natural Heritage Areas.
Frank Feighan
Question:172 Deputy Frank Feighan asked the Minister for the Environment, Heritage and Local Government if his Department will review the boundaries of the bog land included in special areas of conservation and natural heritage areas as a measure to alleviate the distress caused to private individuals who have for generations cut small amounts of turf for their own use on the margins of these areas; and if his Department will engage in meaningful discussions with those peoples representatives particularly in view of the crisis in price and supply of other fuels. [12702/09]
Bogs are important natural habitats and are home to unique ecosystems containing rare flora and fauna. Both blanket bogs and raised bogs are protected habitats under European and Irish Law and representative samples have been designated as Special Areas of Conservation (SAC) under the Habitats Directive or Natural Heritage Areas (NHA) under the Wildlife Acts. Ireland has some of the most ecologically important bogs in the European Union. In 1999, when the first of these sites was designated for nature protection, all commercial cutting on these bogs was stopped and the then Minister granted a ten year grace period for those who were cutting turf for their personal domestic use to find alternative sources of fuel.
Blanket bogs, which occur predominantly on the Western seaboard but also in Wicklow and the midlands, can tolerate a certain amount of turf extraction without compromising their value as habitats. It is envisaged that cutting on Blanket Bog SACs and NHAs can continue, except in very sensitive areas, under the current restrictions, which prohibit commercial extraction and the use of "sausage" machines. Raised bogs occur predominantly in the midlands. There are over 1,500 raised bogs in the State and only 139 of these are designated for nature protection as SACs or NHAs. The continued cutting of turf, by hand or machine, and associated drainage on these designated raised bogs is incompatible with their preservation. Even with the restrictions in cutting that were introduced in 1999, over one third of the best bog habitat on these sites has been lost in ten years. It is clear that more needs to be done if we are to meet our obligation to protect this important habitat.
The Habitats Directive imposes a legal obligation on the State to take measures to ensure the protection of this essential and irreplaceable part of our natural heritage. Therefore, in the light of the scientific evidence of continuing damage to these valuable habitats, it would not be appropriate to review the boundaries in these areas as suggested in the question. Rather, it is necessary to put arrangements in place to provide for more effective protection of these habitats, which will necessitate the transition to a cessation of turf cutting on the small number of raised bogs which are designated. My Department will establish an interdepartmental working group to consider how best to achieve this and to assess the resources that will be required. This group will consult with interested parties and representative groups, and report back to me later this year.
Frank Feighan
Question:173 Deputy Frank Feighan asked the Minister for the Environment, Heritage and Local Government the reason Ireland opted for 12% to 14% of land for inclusion in special areas of conservation and natural heritage areas when only 1% was requested. [12703/09]
The overall area of land designated for nature conservation purposes constitutes 14% of the terrestrial area of the State. The location and amount of land designated follows on from the application of scientific site selection criteria that have been determined to meet the requirements of the European Union Birds and Habitats Directives for sites of European importance i.e. Special Protection Areas and Special Areas of Conservation respectively. Similarly, scientific criteria were applied to the selection of sites of national importance as Natural Heritage Areas. I am not aware of any basis for the 1% figure referred to in the Question.
Water and Sewerage Schemes.
Finian McGrath
Question:174 Deputy Finian McGrath asked the Minister for the Environment, Heritage and Local Government when the contract for the upgrading of the water and sewerage services in Tuam, County Galway will be signed. [12762/09]
The Tuam Town Water Supply and Sewerage Scheme Stage 2 is included for funding in my Department's Water Services Investment Programme 2007-2009. I approved Galway County Council's tender recommendation for the scheme in October 2008. Subsequent contract arrangements are a matter for the County Council.
Natural Heritage Areas.
Frank Feighan
Question:175 Deputy Frank Feighan asked the Minister for the Environment, Heritage and Local Government the position regarding the sale of bog land under special area of conservation in respect of a person (details supplied) in County Roscommon; and when it is envisaged payment will issue in this case. [12779/09]
I understand that this application is currently being progressed within the Chief State Solicitor's Office. However, it is not possible, at this stage, to be definitive as to when the transaction may be completed.
Telecommunications Services.
Tom Sheahan
Question:176 Deputy Tom Sheahan asked the Minister for Communications, Energy and Natural Resources when broadband can be expected in Rathmore, County Kerry. [12681/09]
Broadband service providers operate in a fully liberalised market, regulated, where appropriate, by the independent Commission for Communications Regulation, ComReg. Broadband services are available from competing service providers over multiple platforms, including DSL (telephone lines), cable, fixed wireless, mobile and satellite. I understand that broadband is available in Rathmore, County Kerry from mobile and satellite service providers.
Grant Applications.
Frank Feighan
Question:177 Deputy Frank Feighan asked the Minister for Agriculture, Fisheries and Food when a REP scheme application in respect of a person (details supplied) in County Roscommon will be processed for payment in view of the fact that the application is with his Department for a considerable time. [12697/09]
REPS 4 is a measure under the current Rural Development Programme 2007-13 and is subject to EU Regulations which require detailed administrative checks on all applications to be completed before the first payments issue. The first payments for 2008 REPS 4 applications issued in the last week of January to those whose applications required no correction following the administrative checks. Further payments continue to be made as applications are cleared. Queries have arisen during the administrative checks on the plan of the person named and it is currently under further examination.
Site Acquisitions.
James Reilly
Question:178 Deputy James Reilly asked the Minister for Education and Science if he will confirm that he will, at some date in the future, provide a new school at Hedgestown, Lusk, County Dublin; if he will confirm same in writing to the board of management and Fingal County Council in order that the board of management can proceed with the purchase of the two acre school site from Fingal County Council; and if he will make a statement on the matter. [12635/09]
The school's application for Major Capital Grant Aid has been assessed in accordance with the prioritisation criteria, and has been assigned a Band rating of 2.1. The Department approved funding for the purchase of an 80 sq m classroom for the school on its existing site in 2007. Emergency funding was granted to the school in December 2008 for ceiling repairs.
The Department is aware of the accommodation needs of this school and, on foot of a technical inspection some time ago, is satisfied that the proposed 2 acre site is suitable for a new school building. The progression of all large scale building projects, including this project, from initial design stage through to construction phase will be considered in the context of my Department's multi-annual School Building and Modernisation Programme.
However, in light of current competing demands on the capital budget of the Department, it is not possible to give an indicative timeframe for the progression of the project at this time. In that context, it is a matter for the school authority as to whether or not they acquire the 2 acre site from Fingal County Council at this time.
Schools Refurbishment.
Joan Burton
Question:179 Deputy Joan Burton asked the Minister for Education and Science the position regarding plans for the long promised refurbishment or replacement of a school (details supplied) in Dublin 15; if he will confirm that funds will be made available through the summer works scheme 2009 for the refurbishment of the science laboratories and the home economics facilities at the school; and if he will make a statement on the matter. [12636/09]
The school's application for Major Capital Grant Aid has been assessed in accordance with the prioritisation criteria, and has been assigned a Band rating of 2.4.
The progression of all large scale building projects, including this project, from initial design stage through to construction phase will be considered in the context of my Department's multi-annual School Building and Modernisation Programme. However, in light of current competing demands on the capital budget of the Department, it is not possible to give an indicative timeframe for the progression of the project at this time. Applications submitted for the deferred Summer Works Scheme in 2008, including one from the school in question, are being assessed currently for summer 2009 and the school authority will be notified of the outcome of this assessment in due course.
Schools Building Projects.
Joan Burton
Question:180 Deputy Joan Burton asked the Minister for Education and Science the status of a school (details supplied) in Dublin 15 with respect to the capital development programme; if funding is allocated to this effect for 2009 or for 2010 under his Department’s multi annual school building and modernisation programme; if the appointed design team has completed its preliminary design and sketch activities for this project; if they have not, when these activities are due to be completed; when this project is scheduled to progress to phase two; when this project is scheduled to be completed; and if he will make a statement on the matter. [12638/09]
The major capital project for the School to which the Deputy refers has been assigned the highest priority band rating of 1. A design team has been appointed and the project is currently at Stage 1 — preliminary design and sketch scheme. The project will be allowed to proceed up to Stage 2a i.e. developed sketch scheme.
The progression of all large scale building projects from initial design stage (up to and including stage 2a) through to tender and construction (stages 3-5), including this project, will be considered in the context of my Department's Multi-Annual School Building and Modernisation Programme. In light of current competing demands on my Department's capital budget, it is not possible to give an indicative timeframe for the completion of the project at this time.
Joan Burton
Question:181 Deputy Joan Burton asked the Minister for Education and Science the status of the preparations for the construction and opening of a post-primary school in Luttrelstown, Dublin 15; if his Department and the County Dublin Vocational Education Committee have identified suitable accommodation for the opening of the school in September 2009; if he will confirm that this school will open in September 2009; if a site for the permanent location of the school has been identified and acquired; when this is expected to take place; the funding allocated to this school for 2009; when construction is scheduled to commence on the permanent accommodation for this school; if a construction contract has been tendered and concluded; and if he will make a statement on the matter. [12639/09]
My Department has been aware of a need for further post primary provision in the Dublin 15 area and in that context, I sanctioned the establishment of a new post primary school for the area last year. The new school will be called Luttrellstown Community College and the Patron is County Dublin VEC.
My Department is working closely with Co. Dublin VEC to open the new school in September 2009 and temporary accommodation has been identified. My Department will acquire a permanent site for the new school under the Fingal School Model Agreement. A number of sites, including this one, being acquired under the Fingal School Model agreement are at varying stages of acquisition and, as the Deputy will appreciate, due to commercial sensitivities relating to site acquisition, I am not in a position to comment further at this time.
The progression of all large scale building projects, including this project, from initial design stage through to construction phase will be considered in the context of my Department's multi-annual School Building and Modernisation Programme. However, in light of current competing demands on the capital budget of the Department, it is not possible to give an indicative timeframe for the progression of the permanent project at this time.
Special Educational Needs.
Joanna Tuffy
Question:182 Deputy Joanna Tuffy asked the Minister for Education and Science if he will investigate why special needs assistance care was removed from a person (details supplied) in Dublin 22; if his attention has been drawn to the fact that the student is sitting the leaving certificate examination in 2010; if he will ensure the service is restored; and if he will make a statement on the matter. [12641/09]
As the Deputy will be aware, the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENOs), for allocating resource teachers and Special Needs Assistants (SNAs) to schools to support children with special needs.
Applications for SNAs may be considered by the NCSE where a pupil has a significant medical need for such assistance and where there are identified care needs arising from a diagnosed disability. A pupil's level of care may diminish over time as the child matures. Pupils may move to a different school or on to post-primary school. In such situations, the NCSE will review and adjust the SNA support required in the school. This may mean that some pupils who had previously been supported by a full time SNA may have their needs met through the shared support of an SNA or perhaps they may have no need for SNA support.
The NCSE operates within my Department's criteria in allocating such support and conveys decisions directly to schools without recourse to my Department.
I have arranged for the details supplied to be forwarded to the NCSE for their attention and direct reply.
Multi-Denominational Schools.
Charlie O'Connor
Question:183 Deputy Charlie O’Connor asked the Minister for Education and Science if there are plans to establish an Educate Together school in Tallaght, Dublin 24; the contacts he has had in the matter; and if he will make a statement on the matter. [12671/09]
A Notification of Intention to apply for recognition of a new primary school in the Tallaght/Firhouse area has been received from the Patron Body for Educate Together.
I have recently announced a review of the procedures for the establishment of new primary schools under the Commission on School Accommodation. It is expected that the review of procedures for recognising primary schools will be completed and revised arrangements will be in place within a two year time frame.
In the interim it is not proposed to recognise any new primary schools, except in areas where the increases in pupils numbers cannot be catered for in existing schools and which require the provision of new schools. This means that new schools will not be established for reasons unrelated to demographic growth in areas where there is already sufficient school accommodation or where increases can be catered for by extending existing school accommodation.
The Forward Planning Section of my Department is in the process of identifying the areas where significant additional accommodation will be required at primary and post-primary level for 2009 and onwards and Dublin 24 will be included in this process.
Factors under consideration include population growth, demographic trends, current and projected enrolments, recent and planned housing developments and capacity of existing schools to meet demand for places. Having considered these factors decisions will be taken on the means by which emerging needs will be met within an area.
Schools Grants.
Brian Hayes
Question:184 Deputy Brian Hayes asked the Minister for Education and Science if he will make a statement in regard to his recent meeting with a group (details supplied) on the removal of a special service support grant to certain schools. [12677/09]
I met with representatives of the Grand Orange Lodge of Ireland on 10 March. This was a historic meeting and was the first time that members of the Orange Order had sent a delegation to discuss an educational issue within this state.
I briefed the representatives on funding arrangements for Protestant schools and the background to the decision in the October budget to remove ancillary grants from fee-paying Protestant schools.
I outlined the background to the block grant, which is expected to be €6.5 million in this school year. It covers capitation, tuition and boarding costs and is distributed through the Secondary Education Committee established by the churches concerned. Applications for assistance are made by parents to the Secondary Education Committee which, on the basis of a means test, distributes the funds to individual schools on the basis of pupil needs. This fund ensures that necessitous Protestant children can attend a school of their choice. I confirmed that there were no changes to this grant and that I would be willing to consider increasing it when the public finances permit.
We discussed also the meeting I had with representatives of the Church of Ireland Board of Education, led by Archbishop John Neill, on 13 November last, at which I expressed my willingness to consider any proposals that might be made to my Department that would enable the available funding to be focused and adjusted to more effectively meet the twin objectives of access for individuals and sustaining the dispersed schools that they wish to attend. The Bishops are to respond on how the funding I am continuing to make available might best be deployed to meet the needs of their schools. I can advise the Deputy that I recently received correspondence from the Secondary Education Committee who have sought a meeting with my officials to progress the matter.
I emphasised to the representatives of the Grand Orange Lodge of Ireland that I, along with my colleagues in Government, recognise the importance of ensuring that students from a Protestant background can attend a school that reflects their denominational ethos. The meeting was constructive and I expressed my willingness to schedule further meetings if it would be considered helpful.
Departmental Expenditure.
Michael McGrath
Question:185 Deputy Michael McGrath asked the Minister for Education and Science if he will respond to a query regarding the funding of his Department’s school capital building programme (details supplied). [12690/09]
As the Deputy will be aware, individual Ministers do not borrow funds for projects. My Department operates within the funding voted to it by the Oireachtas.
The borrowing of exchequer funds is managed by the Minister for Finance and the National Treasury Management Agency.
School Transport.
Frank Feighan
Question:186 Deputy Frank Feighan asked the Minister for Education and Science if his Department will review the financial burden placed on families due to the increased cost in school transport with particular reference to persons (details supplied) in County Leitrim who have two children using school transport to school. [12698/09]
The cost of school transport, a service delivered by Bus Éireann on behalf of my Department, have been increasing arising from a range of issues such as: ensuring a comfortable and safe transport service for over 135,000 children daily travelling to and from school (breakdown by county not readily available), measures to ensure the highest standards including the phasing out of the 3 for 2 seating arrangement on both primary and post-primary services, providing all children with an adult seat each; the addition of a considerable number of vehicles to address capacity shortfalls arising from the decision to provide each child with an individual seat and the equipping of all dedicated school buses with safety belts; increased demands to meet the needs of special needs children; parental choice.
In order to minimise the overall impact of these charges on families, the increases will apply to the 55,000 eligible post primary pupils and children availing of concessionary transport. Primary school transport remains free of charge for over 54,500 children. Parents will be offered the option to spread the amount due over two payments payable in July and December. A maximum family payment of €650 will apply. Charges continue to be waived in the case of eligible post-primary children where the family is in possession of a valid medical card.
The overall spend on school transport in 2009 is now estimated to be €194m — a reduction of €2m in the revised allocations as a result of efficiencies.
Taking into all the factors outlined, it is not envisaged that there will be a reduction in the annual charge system, the estimated expenditure or the level of charges.
My Department has also commenced a Value for Money Review of the School Transport Scheme which is to be completed before the end of the year.
Higher Education Grants.
Fergus O'Dowd
Question:187 Deputy Fergus O’Dowd asked the Minister for Education and Science if fees (details supplied) for the recently redundant will be covered under the grant schemes; and if he will make a statement on the matter. [12705/09]
The statutory framework for the maintenance grants scheme, as set out in the Local Authorities (Higher Education Grants) Acts, 1969 to 1992, provides for means-tested higher education grants in order to assist students to attend full-time third level education.
Clause 1, 1.1 of the Higher Education Grants Scheme defines an approved course as a full-time undergraduate course of not less than two years duration or a full-time postgraduate course of not less than one year duration pursued in one of the approved institutions listed in the appendices to the scheme. Distance learning courses do not meet this definition.
In the higher education sector, a course is considered to be full-time where the student is attending an intramural day course at a third level institution and devoting their whole working time to their academic studies.
Schools Refurbishment.
Jan O'Sullivan
Question:188 Deputy Jan O’Sullivan asked the Minister for Education and Science if he will provide a grant under the summer works scheme for emergency works for health and safety reasons in respect of a school (details supplied) in County Limerick consisting of a boundary wall and fence; and if he will make a statement on the matter. [12709/09]
Applications submitted for the deferred Summer Works Scheme in 2008, including one from the school in question, are currently being assessed for summer 2009 and the school authority will be notified of the outcome of this assessment in due course.
Site Acquisitions.
Michael McGrath
Question:189 Deputy Michael McGrath asked the Minister for Education and Science the position in relation to a land transfer issue which relates to a proposed extension to a school (details supplied) in County Cork. [12713/09]
My Department is of the view that it is necessary to transfer a portion of land from the Community School to the neighbouring gaelscoil for a school building project. To this end my officials have liaised with the CSSO on the matter. My Department will be formally seeking the views of the Community School Trustees to the proposal before formally instructing the CSSO to execute the transfer.
School Transport.
Frank Feighan
Question:190 Deputy Frank Feighan asked the Minister for Education and Science the number of children in junior cycle and senior cycle using school transport provided by Bus Éireann in counties (details supplied). [12757/09]
In the region of 75,000 post primary pupils avail of school transport services nationally. My Department will arrange to provide the Deputy with a breakdown of this figure on a County by County basis. The split between junior and senior cycle pupils is not readily available.
Schools Building Projects.
Pádraic McCormack
Question:191 Deputy Pádraic McCormack asked the Minister for Education and Science if he will confirm if a school (details supplied) in County Galway will be included in the next public private partnership bundle in order that this school can proceed to tender, full planning permission and construction without delay in view of the fact that funds have been provided for the transfer of the site from Galway City Council to Galway City Vocational Education Committee; and if he will make a statement on the matter. [12780/09]
I am pleased to confirm that my Department has recently provided funds to the Galway City Vocational Education Committee to enable them to close the sale on the site for the school mentioned by the Deputy.
This school is included in my Department's PPP school building programme and the make up and timing of further school bundles from this programme will be determined by my Department in consultation with the National Development Finance Agency (NDFA).
The issues to be considered in the timing and bundling of these schools include site availability for each school, geographical spread and the estimated total cost of the proposed school bundle.