James Bannon
Question:64 Deputy James Bannon asked the Minister for Finance if he has made changes in his Department’s tax forecasting procedures; and if he will make a statement on the matter. [19014/09]
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 5, inclusive, answered orally.
Questions Nos. 6 to 54, inclusive, resubmitted.
Questions Nos. 55 to 63, inclusive, answered orally.
Tax Forecasting.
Tax revenues are forecast by my Department on a disaggregated individual tax-head basis using relevant macroeconomic drivers and, where appropriate, certain elasticity factors. Last year the Department of Finance published a report produced by a group specifically established to examine the tax forecasting methodologies used by the Department. The Tax Forecasting Methodology Review Group comprised of experts from the Department of Finance, the ESRI, the Revenue Commissioners and the Central Bank and had input from the EU Commission.
In terms of the findings, while the Group suggested that the Department of Finance displays a prudent bias in tax forecasting, it did not suggest any major structural recommendations to the way my Department forecasts tax revenue. However, it did suggest a number of adjustments which the Department is currently implementing. Furthermore, the Group's report also indicated that the Department's methods were not out of line internationally. A copy of the Group's report is available on the Department of Finance website (www.finance.gov.ie).
Notwithstanding the strengths and weaknesses of the methodologies used to produce the technical forecast, judgement and prudence plays an important role in deciding on any forecast. To this end, my Department liaises closely with the Revenue Commissioners to ensure any emerging trends are identified and all relevant data is taken on board.
Furthermore, it must be acknowledged that forecasting is not an exact science and there is always a risk of variance. This has been especially true during recent times, when the global economy has experienced a period of unprecedented uncertainty while our own economy undergoes a significant domestic adjustment. In these circumstances, it has proven to be extremely difficult for all forecasters to accurately predict short-term economic and fiscal trends.
In terms of tax revenue performance so far this year, tax receipts at end-April, at €10.1 billion, are down 24 per cent on the same period last year. This represents 29 per cent of the Supplementary Budget's forecast of €34.4 billion and is generally in line with the average percentage of the end-year outturn received after 4 months over recent years.
When looking at the tax revenue figures to end-April it must be borne in mind that the revenue-raising measures announced in the Supplementary Budget will improve revenues as the year progresses. In addition, there will be a positive base effect upon year-on-year comparisons as 2009 progresses due to the fact that tax revenues worsened during the course of 2008. In overall terms at this stage, based on the current assessment for the economy, my Department still expects that tax revenues will amount to about €34½ billion, which would represent a 15½ per cent decline on last year's outturn.
That said, it is still early in the year and, as such, my Department will continue to monitor the situation on an ongoing basis and will report in detail at the mid-year stage in the context of the end-June Exchequer Returns press conference.
National Asset Management Agency.
Willie Penrose
Question:65 Deputy Willie Penrose asked the Minister for Finance if it is legally possible for the National Asset Management Agency to engage in its initial valuation work before the relevant legislation is enacted; and if he will make a statement on the matter. [18953/09]
Pending the establishment of NAMA on a statutory basis an interim Managing Director has been appointed and I will announce an Advisory Committee in the coming days. The establishment of NAMA and interim preparations will also be overseen by the NAMA Steering Group recently established by me and including representatives of my Department, the NTMA and the Office of the Attorney General.
I will be working closely with the interim NAMA Management to ensure that there is sufficient information available to them to undertake the initial valuation work required for the efficient establishment of NAMA. Valuations will build on the significant amount of work carried out on behalf of the Financial Regulator by PwC and Jones Lang LaSalle. The legal basis for preparatory work and the exchange of information is under the NTMA Act 1990 and the Credit Institutions (Financial Support) Act 2008. I will be seeking information from the covered institutions in relation to their current loan books to assist the NAMA project.
The establishment of NAMA on an interim basis will allow preparatory work to begin immediately with regard to developing valuation methodologies, developing initial contacts with the banks and identifying loans to be transferred. Specialist expertise, including valuation expertise, will be procured by the NTMA to ensure that the work to be done by NAMA when it is established is accomplished in the most efficient manner so as to safeguard taxpayers' interests.
Financial Services Regulation.
Sean Sherlock
Question:66 Deputy Seán Sherlock asked the Minister for Finance his views on the recent year end results published by a bank (details supplied); his further views in particular, on the practice of rolling up of interest during 2008 amounting to one third of customer interest for that year; if his attention has been drawn to the extent of this practice at other credit institutions covered by the bank guarantee; and if he will make a statement on the matter. [18969/09]
The institution to which the Deputy refers is an independent financial institution operating on a commercial basis and it would not be appropriate for me as Minister for Finance to comment in specific terms on its financial performance. However, as the Deputy will be aware, the institution in question is suffering from its exposure to property prices and the general economic downturn, in common with other credit institutions.
Regarding the practice of interest roll-up, this is a feature of land and development financing which has been practised as standard across institutions with land and development books. My understanding is that it operates within defined time limits in the relevant institutions. In considering the ramifications of interest roll-up arrangements, institutions must take a case by case approach in determining whether a borrower has the ability to repay in light of the value and saleability of the underlying asset. This information will inform a bank's assessment of the quality of a loan and whether provision is necessary. In this context, I am informed by the Financial Regulator that Irish credit institutions, as part of case management, are reviewing interest roll-up arrangements, assessing future potential to repay and making provision accordingly.
Joan Burton
Question:67 Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to the fact that many mortgage holders on high rate, fixed interest mortgages who have suffered significant income reductions in the past year and who have not benefitted from the European Central Bank interest rate reductions are having difficulties meeting mortgage repayments and that such mortgage holders are being quoted large breakage fees to switch to cheaper, variable rate mortgages, sometimes amounting to tens of thousands of euro; his views on introducing a relatively modest cap on such breakage fees, particularly for those mortgage holders in financial difficulties; and if he will make a statement on the matter. [18984/09]
As the Deputy will be aware, fixed rate mortgages can be regarded as a form of insurance against interest rate changes as fixed rate mortgages provide certainty and security to borrowers regarding the level of their repayments.
As referred to in the Deputy's question in circumstances that many households are faced with significantly increased financial pressures, the current environment of very low interest rates clearly highlights to fixed rate mortgage holders the saving that would be available if they benefited from a variable interest rate. It is clear, therefore, why many fixed rate mortgage holders seek to switch to secure lower repayments.
However, when a borrower signs a fixed-rate mortgage contract with a mortgage provider, the lender in turn enters into an agreement where they borrow the money at an agreed rate. The mortgage lender must repay the money at this agreed rate, so there is a cost to the institution if the fixed rate agreement is terminated before the agreed term which gives rise to the redemption fee charged in these cases.
On 26 March 2009, I undertook, in this House, to raise concerns regarding the level of redemption fees with the Consumer Director of the Financial Regulator who has a statutory mandate to safeguard the interests of consumers. At the beginning of April my Department wrote to the Consumer Director to request confirmation that redemption fees charged for switching from a fixed rate mortgage cover funding costs only and that there are no other costs included.
To date, the Financial Regulator has been able to confirm to my Department, that all mortgage lenders have responded and that all have provided the formula used by that lender when calculating the early redemption fee applying to fixed rate mortgages.
The Financial Regulator is awaiting independent verification, by an actuary, from a number of lenders that the fee being charged recoups only those costs incurred by the lender when financing the fixed rate mortgage. However, the verifications received indicate that the formulae applied by lenders seek to recoup the loss to the lender arising from the early redemption of the fixed rate mortgage and do not seek to apply a penalty charge on the borrower.
The Financial Regulator is also examining whether any other costs are being charged such as administrative fees, etc. Any such charges may be subject to approval by the Regulator under Section 149 of the Consumer Credit Act 1995 and will be examined further in that light. To date the responses indicate that most lenders do not levy additional charges in the case of early redemption of fixed rate mortgages.
The Financial Regulator has advised that further analysis may be necessary once all of the information is received and reviewed. Should the remaining analysis by the Financial Regulator indicate that further consideration of this issue is required, it will be carried out.
It is important to note that a number of important initiatives have been put in place by Government to assist borrowers in difficulties. These include:
The Money Advice and Budgeting Service (MABS) which is developing a joint protocol with the Irish Banking Federation to ensure effective co-operation when dealing with debt problems of personal debtors.
The mandatory Code of Conduct for Mortgage Arrears requires that when a borrower is in difficulty the lender shall make every reasonable effort to agree an alternative repayment schedule. Under the Code consideration should be given on a case-by-case basis to alternatives such as deferral of payments, extending the term of the mortgage, changing type of mortgage, or capitalising arrears and interest. In any case, lenders will not commence legal action for repossession until after six months from the time arrears first arise.
Finally, as part of the subscription agreement for their recapitalisation Bank of Ireland and AIB will not commence court proceedings for repossession of a principal private residence until after 12 months of arrears appearing where the customer continues to co-operate with the banks.
Tax Code.
John Perry
Question:68 Deputy John Perry 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. [19089/09]
The Deputy will be aware that on 4th May last the US Administration announced proposed changes to the so called system of tax deferral. The announcement of these changes, which had been flagged by the Obama Administration, represents the beginning of a process that will involve detailed discussion and debate in both Houses of Congress.
The US Administration has signalled clearly that they are very conscious of the need to maintain the competitiveness of US companies operating globally and in that context the Government will continue to engage with both the US Administration and with Congress as the debate develops.
The Government and I attach the highest importance to strengthening the economic partnership between our two countries, a partnership that has contributed enormously to the very significant trade and investment between the two countries. We have a common interest with the US Administration in keeping strong that partnership that has served us well up to now. My Department in conjunction with the Department of Enterprise, Trade and Employment and the IDA will be working in close collaboration with the Embassy in seeking to address the various policy proposals. In that respect I want to assure the Deputy that the Minister for Foreign Affairs, through the Embassy in Washington, has been monitoring and responding to all proposals for policy initiatives which could potentially impact on the Irish economy.
Public Service Pay.
John Deasy
Question:69 Deputy John Deasy asked the Minister for Finance the way he plans to operate the early retirement and employment embargo; and the savings in the public service pay bill which he estimates from each measure. [19040/09]
Ruairí Quinn
Question:112 Deputy Ruairí Quinn asked the Minister for Finance the expected Exchequer saving for 2009 and 2010, respectively, resulting from the incentivised career break and incentivised early retirement schemes for public servants; and if he will make a statement on the matter. [18965/09]
I propose to take Questions Nos. 69 and 112 together.
The Government has recently announced a range of initiatives which are intended to lead to savings in the public service pay bill.
The first of these initiatives is the Government decision that, with effect from 27 March 2009, no public service post, however arising, may be filled by recruitment, promotion or payment of an allowance for the performance of duties at a higher grade, and any limited exceptions to this principle would require my prior sanction. This decision also applies to temporary appointments on a fixed-term basis and to the renewal of such contracts. Vacancies may be filled by redeployment of staff from other Departments or public bodies with my sanction. There is some limited flexibility in how this decision is to be implemented in the Health and Education Sectors to reflect the particular service needs in these areas.
In the April 2009 Supplementary Budget, I announced three further initiatives that will contribute to payroll savings. The Government has decided to offer an Incentivised Scheme of Early Retirement in the public service to reduce the public service pay bill and facilitate a permanent, structural reduction in the numbers of staff serving in the civil service, local authorities, the health sector, non-commercial state bodies and certain other areas of the public service. On 30 April 2009, my Department issued a circular regarding the operation of this Scheme in the civil service. The civil service circular will be used as a model for the operation of the scheme in other appropriate areas of the public service, although there may have to be modifications to accommodate the particular needs of those areas.
In essence, the Scheme is open to applications from 1 May 2009 until 1 September 2009. Employees 50 years of age or over by 1 September 2009 who have already accrued entitlement to preserved superannuation benefits under a public service scheme, and who have not yet reached normal preserved pension age, are eligible to apply for early retirement under the Scheme. In general, Departments are expected to facilitate the early release of staff, with priority being given to the officers with the longest service, other things being equal. In general, the Scheme will be subject to local management arrangements and controls to ensure that its operation does not undermine the effective delivery of services to the public. The Scheme provides that applications can be deferred for up to one year, or in exceptional cases refused, for stated business reasons.
The Government has also decided to implement two new work-life balance initiatives, the Special Civil Service Incentive Career Break Scheme to facilitate civil servants in taking a career break for 3 years, and the Shorter Working Year Scheme which replaces the existing Term Time Scheme. Circulars have also issued from my Department in regard to the operation of these schemes in the Civil Service; these measures or their equivalent will also be extended to other appropriate areas of the public service in due course.
While the Exchequer savings arising in respect of each of the above schemes cannot be projected with certainty, as they are dependent on take-up in each case and other factors, taken together it is estimated that the above package of measures could yield payroll savings of the order of €150 million in 2009 and €300 million in a full year. It all depends on take up.
Proposed Legislation.
Arthur Morgan
Question:70 Deputy Arthur Morgan asked the Minister for Finance if he will proceed with abolishing long service increments to TDs; when he will proceed with same; if legislation is necessary; and if he will make a statement on the matter. [19099/09]
Among the measures announced in my Budget Statement to this House on the 7th April was the decision of the Government to make additional changes to the remuneration of members of the Oireachtas.
One of the changes to be made was in relation to the payment of long service increments to members. Following advice received from the Attorney General regarding the legislative changes required to effect the changes announced, I can confirm that legislation is required to cease the payment of Long Service Increments to members of the Oireachtas.
In line with the legal advice received, the Government has decided that no further long service increments will be awarded to Members of the Oireachtas but existing members who are currently in receipt of Long Service Increments will retain them for the duration of the current Dáil — or Seanad as appropriate — only. Long Service Increments will not be paid to any members of the Oireachtas in the next Dáil and Seanad. I have recently written to those Deputies who are immediately affected advising them of these measures.
The legislation necessary to effect these changes will be published in the current Dáil session.
Joan Burton
Question:71 Deputy Joan Burton asked the Minister for Finance if he will introduce legislation to establish an extra judicial debt settlement mechanism for persons who have problems meeting loan repayment commitments and whose creditors are seeking an agreed repayment schedule without recourse to the courts; the reason the delay in their publication in 2009; and if he will make a statement on the matter. [18949/09]
The Deputy may wish to note that number of important initiatives are in place to assist consumers who have fallen into debt or are in danger of falling into debt.
For example my colleague, the Minister for Social and Family Affairs provides a non-profit public service counselling service through the Money Advice and Budgeting Service (MABS) at his Department. This is a national, free, confidential and independent service for people in debt or in danger of getting into debt. In 2009, almost €18 million has been provided to assist MABS with its workload. I understand that MABS are working together with the Irish Bankers Federation (IBF) to agree a joint protocol to enable MABS and the IBF continue to work together effectively when dealing with debt problems of personal debtors who approach the MABS Service for assistance.
The Financial Regulator's Consumer Protection Code (CPC), was a major step in promoting the interests of consumers. It obliges 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. The CPC also sets out requirements that a regulated entity must contact the consumer as soon as it becomes aware that a mortgage account is in arrears and that it must have in place a procedure for handling accounts in arrears. It is best practice for lenders to agree a remedial action plan with a borrower where it detects arrears starting to emerge and to try and assist the borrower to manage his or her financial commitments and not allow the situation to worsen. These obligations are additional to the statutory prior information and warnings required under the Consumer Credit Act 1995.
In addition, the Recapitalisation Programme announced on 11 February 2009 includes a new Code of Conduct for Mortgage Arrears, which has been issued by the Financial Regulator and came into force on the 27 February 2009. The new Code applies to mortgage lending activities to consumers in respect of their principal private residence in the State and is mandatory for all mortgage lenders registered with the Financial Regulator including so-called "sub-prime lenders". Under the mortgage arrears code where a borrower is in difficulty the lender shall make every reasonable effort to agree an alternative repayment schedule. Under the Code consideration should be given on a case-by-case basis to alternatives such as deferral of payments, extending the term of the mortgage, changing type of mortgage, or capitalising arrears and interest. In any case, lenders will not commence legal action for repossession until after six months from the time arrears first arise.
In addition as part of their recapitalisation scheme, A.I.B. and Bank of Ireland, will not commence court proceedings for repossession of a principal private residence until after 12 months of arrears appearing where the customer continues to co-operate with the banks.
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.
I believe that the above initiatives provide substantial safeguards and assistance to consumers who experience difficulty in meeting their loan commitments.
National Asset Management Agency.
Caoimhghín Ó Caoláin
Question:72 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if the estimated value of the toxic assets of the banking institutions which was declared to be in the region of €90 billion has been revised; and if he will make a statement on the matter. [19101/09]
When I announced the Government's proposal to establish a National Asset Management Agency (NAMA) in early April, I indicated that the potential maximum book value of loans to be transferred to NAMA was estimated to be in the region of €80 to €90 billion. This remains the case. Of course, the amount to be paid by NAMA will be significantly less than this to reflect the loss in value of the underlying collateral.
Pending the establishment of NAMA on a statutory basis an interim Managing Director has been appointed and I will announce an Advisory Committee in the coming days This Committee which will include experts in valuation, legal affairs, corporate finance and public administration will provide valuable expert advice to both the interim Managing Director and to me as Minister. The establishment of NAMA and interim preparations will also be overseen by the NAMA Steering Group recently established by me and including representatives of my Department, the NTMA and the Office of the Attorney General.
The valuation of the loans, as suggested by the Deputy, will be a very important variable. Preparatory work for the establishment of NAMA which has commenced will include an extensive due diligence on the loans books of the banks to ensure that the appropriate categories or portfolios of loans are transferred to NAMA and that the banks are cleared of their identified riskiest loan portfolios. Loans will be transferred from the banks to NAMA at an appropriate written down value. The development of a valuation methodology by the interim NAMA will take account of the advice of the Advisory Committee and will be consistent with European Commission guidance and subject to EU State aid approval. This will take into account the risk being transferred to the State and an appropriate adjustment for the value of the State support being provided.
The Government has received expert financial, economic, legal and valuation advice at every step of its measured response to the turbulence in the banking sector. Likewise, specialist expertise, including valuation expertise, will be procured by the NTMA to ensure that the work to be done by NAMA when it is established is accomplished in the most efficient manner so as to safeguard taxpayers' interests.
Stability and Growth Pact.
Kieran O'Donnell
Question:73 Deputy Kieran O’Donnell 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. [19081/09]
Article 104 of the Treaty governs the operation of the excessive deficit procedure of the Stability and Growth Pact. On foot of Ireland's deficit figures for 2008 the Ecofin Council made a 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 Council recommendation invites Ireland to reduce the deficit below the 3% of GDP reference limit by end 2013. This is in line with the Government's budgetary strategy. As is normal in these circumstances, I have been in regular contact with the Commission and I have briefed my European colleagues with regard to the position of the public finances in Ireland.
Council recommendations are intended to support and encourage the Member State concerned in its pursuit of necessary, if difficult, budgetary measures to reduce the deficit below 3% of GDP in an agreed timeframe while taking account of economic circumstances.
The European Commission has welcomed Ireland's consolidation strategy including the recent supplementary Budget of the 7th April. It has also been welcomed by Eurogroup.
We are continuing to work with the Commission and our European colleagues on this and other matters and as such the question of penalty clauses does not arise.
Parking Levies.
Thomas P. Broughan
Question:74 Deputy Thomas P. Broughan asked the Minister for Finance if he and the Department of the Environment, Heritage and Local Government plan to introduce a €200 urban parking levy; if so, the timeframe for the introduction of the new tax; the persons to whom it will apply and the geographical areas; if he will confirm that it will include all State parking places including the Houses of the Oireachtas and ministerial parking spaces; and if he will make a statement on the matter. [13698/09]
Planning for the introduction of a car parking levy for urban areas is at an advanced stage and details of its introduction will be announced shortly.
As previously indicated, the levy will apply in the five urban areas of Cork, Dublin, Galway, Limerick and Waterford. Within these urban areas, regard will be had to factors such as:
the availability of public transport,
the level of congestion in the relevant parts of those cities, and
the relative value of the car parking spaces.
Each employee who has an entitlement to use a parking space provided directly or indirectly by his or her employer is liable to pay the levy, there is no distinction in this regard between private sector and public sector employees. Certain official cars owned or provided by the State, the Garda Síochána, the Defence Forces and certain other services such as the fire and ambulance service and the Customs service are excluded.
Insurance Industry.
Dan Neville
Question:75 Deputy Dan Neville 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. [19076/09]
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.
Banking Sector Regulation.
Dinny McGinley
Question:76 Deputy Dinny McGinley 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. [19070/09]
The decision on pass through of ECB rate reductions to variable rate mortgages is a commercial decision for the financial institution concerned. This decision will reflect a range of different factors including funding costs, market conditions, profitability and business strategy as well as the competitive environment overall. The Deputy will appreciate it is a core function of the Board and senior management of each institution to assess where the appropriate balance lies between these competing objectives particularly in ensuring the financial health and commercial viability of the relevant institution. It is not an appropriate role for the Minister for Finance to seek to determine this decision making by financial institutions operating under competitive market conditions.
In view of its statutory consumer protection mandate, the Financial Regulator will continue to monitor interest rates charged by financial institutions.
Banking Sector.
Joanna Tuffy
Question:77 Deputy Joanna Tuffy asked the Minister for Finance his views on the suggestion the bank rescue plans here could be the highest, as a proportion of national income, of any developed economy; his further views on the fact that the final cost of bailing out the banks could be more than €20 billion; and if he will make a statement on the matter. [18974/09]
I assume the Deputy is referring to a suggestion which has been attributed to the IMF's Global Financial Stability Report, April 2009.
I am of the opinion that these figures should not be relied on as a measure of costs for Ireland.
The particular figures appear to be based on more or less mechanical application of various modelling tools, with a heavy reliance on technical assumptions some of which are questionable in Ireland's case. The IMF itself says that forecasts of these costs are subject to significant uncertainty and will depend on the evolution of the financial sector. The estimates do not represent the outcome of a specific examination of Irish banks' assets.
The principal reason the IMF approach gives a relatively high figure for Ireland is that our formal legal bank guarantee arrangement is broader-ranging than that in other countries — though other countries have made political commitments that are just as wide ranging — and our financial sector is larger relative to the economy.
Obviously we are open at all times to discussion with international institutions about technical assumptions they apply to the Irish case, but in the current case we are far from convinced that there is significant new or additional informational value in the figures presented, from a national point of view.
Proposed Legislation.
Arthur Morgan
Question:78 Deputy Arthur Morgan asked the Minister for Finance if he will proceed with removing ministerial pensions for sitting TDs; when he will proceed with same; if legislation is necessary; and if he will make a statement on the matter. [19100/09]
In my Financial Statement of 7 April, I stated that the Government had decided to introduce a number of additional changes to the remuneration of Deputies and Senators including discontinuing the arrangement whereby former Ministers are paid Ministerial pensions while they are still members of the Oireachtas. In this regard legislation will be introduced shortly to give effect to this decision. I would add that it is also the view of the Government that it would be appropriate to make a proportionate reduction in the Ministerial pensions payable to serving members in the current Dail and Seanad. I have consulted the members who would be directly affected by this decision before the Government takes a final decision on the matter.
Public Service Expenditure.
Frank Feighan
Question:79 Deputy Frank Feighan asked the Minister for Finance if he will publish the report of the expenditure review group under the chairmanship of Colm McCarthy prior to budget 2010; if so, the expected date of publication; and if he proposes institutional arrangements for the implementation of these proposals. [19050/09]
Mr Colm McCarthy is chairing the Special Group on Public Service Numbers and Expenditure Programmes. Under its Terms of Reference, the Group is to report to me by the end of June and this is on course. The question of whether to publish the Report will be considered by the Government in due course.
The Special Group's analysis and recommendations will be taken into account as appropriate by the Government in framing budgetary policy and preparing the Estimates of Expenditure for 2010 and later years, and the question of new institutional arrangements to implement proposals of the Special Group does not arise.
Tax Code.
Catherine Byrne
Question:80 Deputy Catherine Byrne asked the Minister for Finance if he plans to publish the report of the taxation commission immediately after its presentation to Government; the expected date of publication; and if he proposes institutional arrangements for the implementation of these proposals. [19023/09]
The report of the Commission on Taxation is due to be presented to the Government in July and will be published shortly thereafter. The terms of reference of the Commission on Taxation are broadly defined, far reaching and allow for consideration of all aspects of the Irish taxation system. The work of the Commission will help establish the framework within which tax policy will be set for the next decade at least. As the Commission has not yet finalised their report, it would be inappropriate at this stage to disclose any institutional arrangements for the implementation of any proposals put forward in the Commission's report.
Financial Institutions Support Scheme.
Lucinda Creighton
Question:81 Deputy Lucinda Creighton asked the Minister for Finance the reporting dates imposed on the covered banks in respect of credit information, the level of covered liabilities and the payment of insurance premium and of share coupons for the guarantee and recapitalisation; and if he is satisfied with the arrangements. [19061/09]
Officials from my Department, the Department of Enterprise Trade and Employment, the Central Bank and the Financial Regulator are in regular contact with the banks regarding the flow of lending to small business and consumers. Under the Scheme, covered institutions have committed to submitting reports requested by the Regulatory Authority at my behest, including reports which monitor the flow of credit to the real economy. The reports will be submitted with such frequency and in such form as the Regulatory Authority determines.
With regard to credit commitments arising out of the recapitalisation, the banks have agreed to make quarterly reports to the Financial Regulator. The first reports to end March 2009 have been submitted to the Financial Regulator in accordance with the timeframe of end-April 2009.
Each covered institution must pay the charge quarterly, in advance, to the Minister, payable no later than five working days after the beginning of each quarter, during the period the covered institution avails itself of a guarantee. This charge is based on the monthly average of total covered liabilities. Arising from this, the covered institutions must submit monthly covered liabilities reports to the Financial Regulator. These returns have had to be submitted to the Financial Regulator no later than the 6th working days following month end. However, I understand that the future returns will be incorporated into the Monthly Summary Financial Report which is received by the Regulator no later than the 20th working day following month end.
Finally in relation to the payment of the coupon under the recapitalisation, the fixed dividend of 8% is payable annually. Dividends are payable in cash at the discretion of the bank. If a cash dividend is not paid, then ordinary shares are issued in lieu at a time no later than the date on which the bank subsequently pays a cash dividend on other Core Tier 1 capital.
Election Management System.
Jim O'Keeffe
Question:82 Deputy Jim O’Keeffe asked the Minister for Finance the estimated cost of running the European elections and by elections on 5 June 2009, with an outline of the main items of expenditure; and if he will make a statement on the matter. [17984/09]
Michael Ring
Question:137 Deputy Michael Ring asked the Minister for Finance the estimated cost to his Department of European election 2009. [19228/09]
I propose to take Questions Nos. 82 and 137 together.
The legislative position governing expenditure on elections is mainly the statutory responsibility of the Minister for Environment, Heritage and Local Government. Arising from the statutory position election expenses are charged against the Central Fund under in 3 main headings—
Expenses of running the elections which comprises of necessary costs including poll/counting staff costs, storage of equipment, preparation and provision of polling stations, clerical and travel expenses and various fees;
Charges by An Post for delivery of various material including election communications from parties/candidates, ballot papers for postal voters and polling cards; and
Candidates' expenses subject to statutory limits.
The cost of the 2007 General Election was €31.6m and the cost of the 2008 Referendum was €16.3m. While it is difficult to estimate accurately the cost of the upcoming elections, it is estimated that they will cost in the region of €25-€30m with postal charges estimated at €12m and the remainder the running expenses of the election and the candidates' expenses.
Financial Institutions Support Scheme.
P. J. Sheehan
Question:83 Deputy P. J. Sheehan asked the Minister for Finance if he plans to recapitalise building societies (details supplied). [19065/09]
The institutions to which the Deputy refers are covered under the Government's guarantee Scheme. This has led to increased scrutiny and oversight of the operations of the institutions and to increased engagement with its management including with regard to each of the institution's capital positions.
As the Deputy will be aware, the Government announced on 7 April 2009 its intention to establish a National Asset Management Agency (NAMA). Assets will be transferred from participating institutions to NAMA with the purpose of ensuring that relevant institutions have a clean bill of health, their balance sheets are strengthened and uncertainty over bad debts is reduced.
The Government will consider the position of relevant institutions on an individual basis in the light of the proposed establishment of NAMA, the capital requirements of the institutions concerned and the requirement to protect the position of the taxpayer. In bringing forward the necessary legislation to establish NAMA and the details that will govern its operation, further discussions will be undertaken with the relevant institutions including the institutions referred to by the Deputy where their participation in NAMA and their future capital positions will be discussed on an individual basis.
Financial Services Regulation.
Aengus Ó Snodaigh
Question:84 Deputy Aengus Ó Snodaigh asked the Minister for Finance the process in which he is engaged to reform the regulatory regime of the financial sector; when he expects this process to conclude; his key objectives as part of this process; and if he will make a statement on the matter. [19103/09]
Richard Bruton
Question:87 Deputy Richard Bruton 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. [19085/09]
Eamon Gilmore
Question:117 Deputy Eamon Gilmore asked the Minister for Finance the progress made to date in respect of the establishment of the proposed Irish banking commission; and if he will make a statement on the matter. [18959/09]
I propose to take Questions No. 84, 87 and 117 together.
I outlined the principles for major reform to our financial regulatory structures in my Budget Statement of 7 April, which provide for new structures for banking regulation that will place a reformed Central Bank, under the direction of a new Central Bank Commission, at the centre of financial supervision and financial stability oversight; a substantial increase in regulatory capacity; the appointment of a new Head of Financial Regulation and the establishment of a high level implementation group to expedite the implementation of financial regulatory reform.
The revised structure will provide for full integration and co-ordination of the prudential supervision and stability of individual financial institutions with that of the financial system as a whole. Together, these structural changes and substantial increase in regulatory capacity will support a more effective and efficient financial services regulatory system aligned with best international standards. A priority for Government is that the new independent Commission will be highly authoritative, expert and experienced in the key areas required for it to effectively discharge its responsibilities.
I intend to implement this major reform of the institutional structure for financial regulation and the preparation of legislation along the principles I have outlined over the coming months.
National Asset Management Agency.
Jimmy Deenihan
Question:85 Deputy Jimmy Deenihan asked the Minister for Finance the type of management structure, governance, reporting arrangements, and the staff and board selection procedures which he envisages for the National Asset Management Agency; and if he will make a statement on the matter. [19042/09]
The National Asset Management Agency (NAMA) will be established on a statutory basis, under the aegis of the National Treasury Management Agency (NTMA). NAMA will be an independent commercial entity run on an arms-length basis. It will be staffed by professionals whose objectives will be to maximise returns. Like any commercial entity it will want loan agreements honoured in full and will take all necessary steps to extract value from its acquired loan book.
I intend to introduce the necessary legislation before the summer. Matters such as the appointments of the Board, the Chairperson and the Managing Director as well as governance issues and staff recruitment will be addressed in the legislation. Preparatory work by my Department, the Office of the Attorney General, the NTMA and our legal and financial advisors for the establishment and operation of NAMA on a statutory basis is underway. This includes work on the assessment of the staffing needs of the Agency.
I recently announced the appointment of Mr Brendan McDonagh as interim Managing Director of NAMA. By appointing an interim Managing Director, the Government is ensuring the implementation process will be driven forward in the interim period pending legislation. Mr McDonagh will be assisted by a high level advisory committee that I expect to name shortly. I have also directed the NTMA to provide the necessary staffing and other facilities through its existing resourcing arrangements to support the interim operation of NAMA, pending its establishment on a statutory basis.
Corporate Responsibility.
Leo Varadkar
Question:86 Deputy Leo Varadkar asked the Minister for Finance his views on proposals made by a group (details supplied) for the inclusion of corporate responsibility in terms of ethics and social concern as a criterion in the award of public procurement tenders; and if he will make a statement on the matter. [13522/09]
I am satisfied that the existing procedures used by public authorities in awarding contracts adequately reflect the general issues of ethics and social concern raised by the Deputy.
EU Treaties and Public Procurement Directives stipulate that the core principles which must be observed in the award of public contracts are openness, competition and non-discrimination. Consistent to these principles, contracting authorities have discretion to specify where appropriate, that certain social and environmental criteria be met where these are related to the subject of the contracts. In transposing the Public Procurement Directives into Irish law we have allowed (i) that contracting authorities may prescribe that certain environmental and social conditions be observed in the performance of a contract; (ii) that, as agreed under Towards 2016, public contracts must comply with Irish employment law generally including the national minimum wage and Registered Employment Agreements in force; and (iii) that contracting authorities may reserve contracts for sheltered workshops or participants in sheltered employment programmes.
Guidance for contracting authorities on how these considerations may be taken into account in a manner consistent with obligations under public procurement rules is published on the national public procurement website www.etenders.gov.ie.
Question No. 87 answered with Question No. 84.
Financial Services Regulation.
Sean Sherlock
Question:88 Deputy Seán Sherlock asked the Minister for Finance the status of the Revenue Commissioner’s investigation in holders of life policies here; and if he will make a statement on the matter. [18968/09]
I take it that the Deputy is referring to the investigation initiated by Revenue in 2005, focussing on the tax affairs of policyholders who used certain life assurance investment products to evade tax. I am advised that the following is the current position.
Prior to the commencement of the investigation into these Single Premium Insurance Policies, Revenue launched a voluntary disclosure initiative for policyholders who had tax issues associated with the policies to come forward to declare their liabilities. Persons taking up this disclosure opportunity, for which the closing date was 22 July 2005, could avail of a reduced penalty and avoid publication. Some €460 million has been collected through this initiative.
Following the final disclosure date, Revenue commenced the follow-up phase of applying for High Court Orders and this continued into early 2007. In its initial applications it sought information from insurance companies on policies where the sum invested was equal to or exceeded €50,000. The ensuing investigation into those policies has to date secured €29million.
Revenue is now seeking further Orders to obtain details on policies falling within the range of €20,000 to €50,000 and, as with the earlier phase, will be using this information to identify cases where policies have been used to evade tax.
Financial Institutions Support Scheme.
Leo Varadkar
Question:89 Deputy Leo Varadkar asked the Minister for Finance the way he will manage the State role on the banks which are to be recapitalised. [19092/09]
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.
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.
Tax Code.
Willie Penrose
Question:90 Deputy Willie Penrose asked the Minister for Finance if, in the wake of 7 April 2009 budget changes to mortgage interest relief, persons who have a mortgage for less than seven years are entitled to interest relief if they had received mortgage interest relief previously in relation to a different property in which the combined duration of their receipt of the relief exceeds seven years; and if he will make a statement on the matter. [18952/09]
As I outlined in the recent Budget, with effect from 1st May 2009, mortgage interest relief is being limited so that the interest payable on a qualifying home loan qualifies for tax relief for the first seven years only of the life of that loan. A qualifying home loan is a loan used for the purchase, repair, development or improvement of an individual's principal private residence.
The seven-year restriction applies to the interest payable on existing and on new qualifying home loans by both first-time buyers and non first-time buyers.
Where a person sells one qualifying residence and buys another, the interest payable on the loan used to acquire the new residence qualifies for mortgage interest relief for the first seven tax years of the life of that loan subject to the normal conditions under which the relief is granted.
I would like to illustrate this by way of example. Take for instance a couple that bought their first family home in 1995 and sold it in 2006 and immediately purchased their present family home financed partly by the proceeds of the sale of the first home and partly by way of a loan. The interest payable on the loan obtained in 2006 qualifies for tax relief for each of the 7 tax years 2006 to 2012 notwithstanding that the couple may have received tax relief in the tax years 1995/96 to 2006 on the interest paid on the loan used to purchase their first family home.
Financial Services Regulation.
Denis Naughten
Question:91 Deputy Denis Naughten asked the Minister for Finance the steps which he is taking to address the cost of sub-prime mortgages; the discussions he has had with the Irish Financial Services Regulatory Authority on the issue; and if he will make a statement on the matter. [18812/09]
As the Deputy will be aware, the Government took steps in October 2007 via an amendment to the Central Bank Act, 1997, to provide for an appropriate system of authorisation and supervision of retail credit firms by the Financial Regulator engaged in specialist or so-called sub-prime lending. Such lenders were not previously subject to financial regulation in respect of lending activities. The primary purpose of this amendment was to extend to customers of these firms the benefit of the consumer protections provided for in the Financial Regulator's Consumer Protection Code. This regulatory regime has been in place since 1 February 2008 and is being implemented by the Financial Regulator. Consumer credit, including sub-prime lending, is also regulated in Ireland under the Consumer Credit Act 1995. The Act makes detailed provision for the form and content of loan agreements and for advertising of consumer credit.
The Consumer Protection Code requires all mortgage lenders to undertake suitability assessments before offering a product or service to consumers. In addition, the Consumer Protection Code sets out the requirements that a regulated entity must contact the consumer as soon as it becomes aware that a mortgage account is in arrears and that it must have in place a procedure for handling accounts in arrears.
The finalised recapitalisation scheme announced on 11th February 2009 includes a new code of conduct for Mortgage Arrears, which has been issued by the Financial Regulator and came into force on the 27 February 2009. The new Code applies to mortgage lending activities to consumers in respect of their principal private residence in the State and is mandatory for all mortgage lenders registered with the Financial Regulator including so-called "sub-prime lenders". Under the mortgage arrears code where a borrower is in difficulty the lender will make every reasonable effort to agree an alternative repayment schedule and will not commence legal action for repossession until after six months from the time arrears first arise.
The Financial Regulator wrote to all regulated mortgage lenders on 16 December 2008 with feedback following a 2008 examination of procedures in place within financial institutions to deal with arrears and repossessions. Their letter sets out best practices identified during the examination for dealing with arrears. 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 1995. 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.
In terms of support for payment of mortgages, the Mortgage Interest Supplement, administered by the Community Welfare Service of the Health Service Executive on behalf of the Department of Social and Family Affairs, provides assistance where the mortgage relates to a person's sole place of residence.
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.
I am satisfied that the measures I have outlined ensure that the interests of such borrowers are safeguarded, consistent with the statutory consumer protection mandate of the Financial Regulator.
Pension Provisions.
Terence Flanagan
Question:92 Deputy Terence Flanagan asked the Minister for Finance the gross and net revenue raised each week from the public service pension levy in gross and net terms; and the estimate for its yield in 2009 and 2010 in net and gross terms. [19055/09]
As published in the Revised Estimates for Public Services 2009 on 23 April 2009, it is currently estimated that receipts from the Public Service pension-related deduction will come to just under €940 million in 2009 and over €1.1 billion in 2010. These estimates allow for the revisions introduced in the April 2009 Supplementary Budget.
The arrangements for the pension-related deduction have been in place since March 1, and were subsequently revised from May 1. As such, detailed data is not yet available. However, the overall yield for 2009 is anticipated to be in line with the latest published estimates.
Social Welfare Benefits.
Jan O'Sullivan
Question:93 Deputy Jan O’Sullivan asked the Minister for Finance if his attention has been drawn to the issues in relation to the imposition of means testing for child benefit or making it subject to taxation; if so, what are these issues; and if he will make a statement on the matter. [18963/09]
Aengus Ó Snodaigh
Question:103 Deputy Aengus Ó Snodaigh asked the Minister for Finance his plans for child benefit payments; the legal obstacles which exist in relation to his plans; the savings he expected to make as a result of such changes; and if he will make a statement on the matter. [19106/09]
I propose to take Questions Nos. 93 and 103 together.
The position in relation to Child Benefit is as set out in my Supplementary Budget on 7 April 2009. The Government does not believe that it is fair to pay the same level of benefit irrespective of the level of income of the recipient. In times of scarce resources the Government believes support should be targeted at those most in need. My Department, together with the Department of Social and Family Affairs and the Revenue Commissioners are considering how best to achieve this policy objective, which includes consideration of any legal issues that may exist. The tax treatment of child benefit is also being considered by the Commission on Taxation. I will be informed by its proposals on this matter.
The saving expected from taxing or means testing child benefit would depend on the scheme selected. However, preliminary analysis would indicate that savings in the region of €400 million in a full year could be achieved.
Financial Institutions Support Scheme.
Pat Rabbitte
Question:94 Deputy Pat Rabbitte asked the Minister for Finance if he will extend the bank guarantee beyond September 2010 in its current form; if the establishment of the National Asset Management Agency is intended to allow the cessation of the bank guarantee in its current form at end September 2010; if he envisages the continuation of the bank guarantee beyond September 2010 in an amended form; and if he will make a statement on the matter. [18971/09]
As the Deputy will be aware, in my Supplementary Budget speech on 7 April I announced that the Government intends to put a guarantee in place for the future issuance of debt securities with a maturity of up to five years.
Work is currently underway to deliver this commitment which is subject to State aid approval from the European Commission. An amendment to the Credit Institutions Financial Support Act, 2008 will be required which it is intended to introduce in the course of the current Oireachtas session.
As I stated on 7 April last, access to longer-term funding in line with the mainstream approach in the EU will contribute significantly to supporting the funding needs of the banks and to securing their continued stability.
Alongside the proposed restructuring of the guarantee, the establishment of the National Asset Management Agency (NAMA) is a very significant important measure to continue to safeguard the stability the banking system and ensure the supply of credit to the real economy. As I highlighted in my recent Budget Statement cleansing and repairing the banks' balance sheets is considered fundamental to achieving a sustained recovery of the banking system in Ireland. The NAMA initiative is integral to addressing the issue of asset quality in the banking system in Ireland. It, therefore has a very important role to play complementing that of the guarantee.
Tax Code.
Brian O'Shea
Question:95 Deputy Brian O’Shea asked the Minister for Finance his approach to the treatment of tax havens; his views on reports that the Obama administration in the US may introduce fiscal measures which could have a detrimental effect on the Exchequer position here and employment; and if he will make a statement on the matter. [18961/09]
I am sure that the Deputy will appreciate that it is important to make a distinction between action against tax havens and the proposed changes to the system of tax deferral announced by the US Administration last week.
Ireland is not a tax haven. It is not included among the OECD list of tax havens; was not included in a recent G20 summit list of tax havens and in fact during the recent Saint Patrick Day celebrations, President Obama assured the Taoiseach that the US did not regard Ireland as a tax haven.
On 4th May last the US Administration announced proposed changes to the so called system of tax deferral. The announcement of these changes, which had been flagged by the Obama Administration, represents the beginning of a process that will involve detailed discussion and debate in both Houses of Congress.
The US Administration has signalled very clearly that they are very conscious of the need to maintain the competitiveness of US companies operating globally and in that context the Government will continue to engage with both the US Administration and with Congress as the debate develops.
The Government and I attach the highest importance to strengthening the economic partnership between our two countries, a partnership that has contributed enormously to the very significant trade and investment between the two countries. We have a common interest with the US Administration in keeping strong that partnership that has served us well up to now.
Freedom of Information.
Joe Costello
Question:96 Deputy Joe Costello asked the Minister for Finance his views on the suggestions made in the annual report of the Information Commissioner, that the Central Bank, the Financial Regulator, the State Claims Agency, the National Treasury Management Agency, including the National Pension Reserve Fund, the National Asset Management Agency and all bodies under the aegis of the NTMA, be brought within the scope of the Freedom of Information Act 1997; if he will bring forward legislation to this effect; and if he will make a statement on the matter. [18983/09]
I have noted the suggestions made in the Information Commissioner's annual report for 2008. I intend to bring proposals to Government shortly on an extension of the application of the Freedom of Information Acts. In considering this matter, the Government will take into account the views of the Information Commissioner as well as other important considerations such as the confidential and commercially sensitive nature of many of the records and information held by the above bodies, their role in maintaining the financial stability of the State and the management of the economy and the obligations imposed by the international dimension of their operations.
Economic Forecasts.
Jan O'Sullivan
Question:97 Deputy Jan O’Sullivan asked the Minister for Finance his views on the fact that the EU Commission published economic forecasts, so soon after the 7 April 2009 budget, to the effect that the general Government balance deficit would reach 15.6% of GDP in 2010; his further views on this analysis; if he has been in contact with the EU Commission in respect of these forecasts; and if he will make a statement on the matter. [18962/09]
New economic forecasts were issued by the European Commission on May 4th last. The forecast by the Commission of a General Government Balance (GGB) deficit of 15.6% of GDP in 2010 was made on the assumption of no-policy-change. However, the Supplementary Budget of April 7th contained provisions for additional tax and expenditure measures which it is estimated will yield €4 billion in 2010. Additionally, the Commission forecast for nominal GDP in 2010 is also lower than my Department's forecast and is thus also a contributory factor in the higher GGB to GDP ratio forecast by the Commission for 2010.
The forecast for a General Government deficit of -10% of GDP for 2010, published in the Supplementary Budget, and taking account of additional policy measures, still stands. Finally, the measures set out in the Supplementary Budget which are designed to bring the deficit below 3% of GDP by end 2013 have been welcomed by the European Commission and by the Finance Ministers of our fellow euro area Member States.
Financial Institutions Support Scheme.
Caoimhghín Ó Caoláin
Question:98 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance if he will extend the banking guarantee; the cost to the Exchequer for doing so; and if he will make a statement on the matter. [19104/09]
As the Deputy will be aware, in my Supplementary Budget speech on 7 April I announced that the Government intends to put a guarantee in place for the future issuance of debt securities with a maturity of up to five years. Work is currently underway to deliver this commitment which is subject to State aid approval from the European Commission. An amendment to the Credit Institutions Financial Support Act 2008 will be required which it is intended to introduce in the course of the current Oireachtas session.
As I stated on 7 April last, access to longer-term funding in line with the mainstream approach in the EU will contribute significantly to supporting the funding needs of the banks and to securing their continued stability.
As is the case for the current CIFS guarantee the covered institutions will pay a fee for the State guarantee so no cost is expected to arise for the State other than in respect of the cost of administering the arrangement.
Kathleen Lynch
Question:99 Deputy Kathleen Lynch asked the Minister for Finance his views on his first six month review of the performance of the bank guarantee and the appropriateness of its charging model; the arrangements for the next six month review; and if he will make a statement on the matter. [18951/09]
Under paragraph 8 of the Credit Institutions Financial Support the Minister for Finance may review and vary the terms and conditions of the Scheme to ensure that it is achieving the purposes of the Credit Institutions Financial Support Act, 2008. The Scheme states that at such a review, the Minister shall consider, inter alia, the continued requirement for the provision of financial support under the Scheme with regard to its objectives and section 2(1) of the Act. This review is currently being finalised with a view to formal submission to the EU Commission as required under the Scheme.
The next review of the Scheme for State aid purposes is due by October 2009 at the latest.
Paragraph 22 of the Scheme relates to the Minister's role in reviewing on a six month basis the application of the guarantee charging model to ensure that it supports the achievement of the purposes of the 2008 Act and the recovery of the aggregate cost to be borne by the State as a consequence of the provision of the guarantee. This review of the basis of the application of the charging model is expected to be completed shortly to ensure that the guarantee charge yields the full expected amount.
Jack Wall
Question:100 Deputy Jack Wall asked the Minister for Finance his views on reports that Anglo Irish Bank will require upwards of €2.5 billion in extra capital in order to repair its balance sheet; the way he proposes to finance an increase in capital at Anglo Irish Bank; the prospective timescale for such a capital injection; and if he will make a statement on the matter. [18966/09]
My Department is in ongoing discussions with Anglo Irish Bank on a range of matters, including the bank's capital position. To date, no significant direct cost has arisen to the Exchequer in respect of the nationalisation of Anglo.
As the Deputy may be aware, the main exposures at Anglo relate to lending for Land and Development and connected exposures. As for all banks, the treatment of such assets held by Anglo is currently being examined in the context of the establishment of the National Asset Management Agency. The Government has stated that support will be provided as necessary to Anglo, consistent with EU State aid requirements.
Motor Industry.
Phil Hogan
Question:101 Deputy Phil Hogan asked the Minister for Finance his proposals or recommendations to aid the motor trade industry here; and if he will make a statement on the matter. [18233/09]
As the Deputy will be aware the Supplementary Budget announced that a Margin Scheme for second-hand cars was being introduced, with effect from 1 July 2009, whereby dealers would be taxed for VAT purposes on their margin in regard to second-hand cars they acquire and resold after that date. The margin is the difference between the price the dealer purchased and resold the second-hand car for. In conjunction with the introduction of the Margin Scheme, special transitional arrangements were being put in place regarding second-hand cars in stock on the introduction of the Scheme.
The Margin Scheme would replace the existing Special Scheme for second-hand cars under which dealers/garages are entitled to immediate input credit for the residual VAT included in the price of a second-hand car acquired either through purchase or trade-in. Under the Special Scheme dealers, when they resell the car, are required to repay this VAT input credit or VAT based on the resale price of the car, whichever is the greater.
Since the Supplementary Budget further discussions have taken place with the motor industry concerning the proposed introduction of a VAT Margin Scheme for second-hand cars. While SIMI expressed appreciation at the efforts made by the Government to try to assist the industry, they considered, in view especially of the difficult financing situation facing the industry, that on balance it would not be in its overall best interest for the Margin Scheme to be introduced at this time. Consequently, the proposed Margin Scheme and transitional arrangements regarding existing stock of second-hand cars is not now being introduced.
It has, however, been agreed that there will be ongoing dialogue over the coming months with SIMI as to what other measures might be introduced to assist the motor industry, especially in regard to removing the current stock of second-hand cars held by dealers.
Banking Sector.
Eamon Gilmore
Question:102 Deputy Eamon Gilmore asked the Minister for Finance his views on the establishment of a national investment bank mandated to support and underwrite strategically important infrastructure projects; and if he will make a statement on the matter. [18960/09]
Notwithstanding the severe budgetary problems we face, this Government is spending very substantial amounts on public infrastructure over the next five years. This year, we will be spending 5% of GNP from the Exchequer on public infrastructure, one of the highest ratios in the EU15. Over the next four years, Exchequer capital investment will amount to an annual average of over 4% of GNP.
This is already a strong support to employment and the reductions in tender prices means that we can do more with less.
The Government is prepared to look at new ways to fund needed capital investment and support more jobs provided:
the terms are right and in the taxpayers favour;
the investment makes economic sense;
value for money is secured; and
the private sector shares the appropriate level of risk so as not to have a disproportionate impact on the public finances.
I would like to see monies now invested abroad or other private capital put to work here if a sensible workable proposal emerges.
Department of Finance officials have actively engaged with several parties to discuss alternative funding proposals; both the likely sources of funding and what would be needed to access such funding.
A number of meetings have taken place and further meetings will take place in the near future as needed.
Any proposal to establish a national investment bank or similar entity to support and underwrite strategically important infrastructure projects would need to be considered in the context of the significant measures already taken by the Government in response to the financial crisis to support the banking system as well as the planned establishment of a National Asset Management Agency. The purpose of this Agency is to ensure that banks have a clean bill of health, their balance sheets are strengthened and uncertainty over bad debts is reduced. This will ensure a sustained flow of credit on a commercial basis to individuals, households and businesses in the real economy. Existing banks will, as a result, continue to have an important role in funding strategically important infrastructure projects in conjunction with existing state bodies such as the National Development Finance Agency.
In this context, the Government does not think it necessary to consider setting up a dedicated bank for infrastructure.
Question No. 103 answered with Question No. 93.
Financial Sector Regulation.
Róisín Shortall
Question:104 Deputy Róisín Shortall asked the Minister for Finance his views on the growing number of financial services intermediaries who are offering debt-handling services at a price to vulnerable mortgage holders who are in arrears and other people in debt; and his plans to regulate or curtail these services. [16971/09]
My understanding is that the Deputy may be referring to the provision of a debt management service whereby a firm acts as a "middleman" between an individual and his or her creditors. In such cases the debt management service receives, say, a fixed monthly sum from the individual and in return pays off various debts of the individual on a scheduled basis. For its service, the firm receives a commission, usually a percentage of the fixed sum from the individual. The firm may also benefit from rebates from the creditors. Alternatively, individuals in arrears may avail of a debt consolidation loan to pay off all of his or her existing debt and replace it with a single loan and single payment.
The Deputy may wish to note that the provision of debt handling and debt recovery services are not activities which require an authorisation or licence from the Financial Regulator. I do not have plans to introduce new regulations for debt handing and debt recovery services as there are important safeguards already in place for consumers in the financial sector where a loan was provided by a regulated financial services provider subject to the Consumer Credit Act 1995 and the Financial Regulator's Consumer Protection Code. In circumstances that the creditor is outside the regulated financial sector and is not subject to the requirements applying in the financial sector it is important to highlight that as far as the debt recovery process is concerned under Section 11 of the Non-Fatal Offences Against the Person Act 1997 it is an offence to demand payment of a debt in a way designed to alarm, distress or humiliate.
As far as availability and independent advice and assistance for consumers in debt or in danger of falling into debt, the Deputy will be aware that the Money Advice and Budgeting Service (MABS) provided under the aegis of my colleague the Minister for Social and Family Affairs provides a national, free, confidential and expert service. The location of its offices throughout Ireland and other details may be obtained through its website www.mabs.ie. Its services may also be availed of via its helpline 1890 283 438. I understand that MABS and the Irish Banking Federation are advancing a joint Protocol on Debt Management which is designed to further improve the operational effectiveness of the IBF Creditor / MABS Adviser engagement.
In addition, the Deputy may wish to note Financial Regulator's Consumer Protection Code provides that where a mortgage is offered to a consumer for the purpose of consolidating other loans or credit facilities, the regulated entity must provide the consumer with a written indicative comparison of the total cost of continuing with the existing facilities and the total cost of the consolidated facility on offer. In the context of providing any consolidated loan the intermediary is of course also subject to the general principles of the Code.
Tax Code.
Thomas P. Broughan
Question:105 Deputy Thomas P. Broughan asked the Minister for Finance if he has had contacts from airline operators, aviation stakeholders or other stakeholders in the wider travel and tourism industry in relation to the impact of the new €10 departure tax on the aviation and airline industries; if he is reviewing the operation of the new €10 departure tax; and if he will make a statement on the matter. [13677/09]
As the Deputy is aware, I announced in Budget 2009 that an air travel tax would come into force in respect of passengers departing from Irish airports on and from 30 March 2009. A general rate of €10 per passenger would apply, with a lower rate of €2 for shorter journeys.
The Finance (No.2) Act 2008 confirms the introduction of an air travel tax from 30 March 2009. However, I took account of concerns raised by the regional airports particularly those on the western seaboard. The lower rate of €2 will apply to departures from any Irish airport where the destination is 300kms or less from Dublin airport. This means that all Irish departures to locations such as Manchester, Liverpool and Glasgow will be subject to the €2 rate.
We currently face significant financial challenges and the air travel tax is an important revenue raising measure.
Ireland is not unique in regard to applying a tax on air travel. Other countries within the EU apply similar taxes including, the UK and France, as do Australia and New Zealand. The proposed rates for the Irish air travel tax are not unreasonable both for shorter and longer journeys, when compared to rates in other countries.
It should be recognised that tourists will only be subject to the tax on their return journey. The additional €10 or €2 in the context of a much larger purchasing decision involving travel, hotel expenditures etc. shouldn't have much of an effect on tourist numbers. I appreciate the airline industry continues to go through a difficult period. However, this difficult trading period has, in addition to weak world economic activity, been largely driven by a massive spike in oil prices. Oil prices have now halved from the all-time high prices experienced last year.
I tried to be as fair as possible in looking at areas for additional tax revenues. It is also worth noting that fuel used by commercial airlines is completely exempt from tax, so it's a sector that already has considerable preferential treatment. I have no plans to review the air travel tax.
Pension Provisions.
Michael D. Higgins
Question:106 Deputy Michael D. Higgins asked the Minister for Finance if the income tax heading of the Exchequer returns includes both the income levy and the pension levy; the breakdown of the contribution of these revenue streams to total income tax receipts; if he will separate these revenue streams from the income tax heading going forward; and if he will make a statement on the matter. [18980/09]
Receipts from the Income Levy are included within the Income Tax heading of the Exchequer Returns. As previously indicated in response to PQ 14171/09 on 7 April, the Revenue Commissioners have advised me that the monthly apportionment between payments of PAYE tax and Income Levy for the 2009 tax year is determined by applying a breakdown formula derived from a tax-forecasting model maintained by the Revenue Commissioners. The precise breakdown between PAYE tax and the Income Levy will be available in the first quarter of 2010 on receipt of the forms P35 from employers. On this basis, Revenue inform me that net receipts from the Income Levy at the end of April have been estimated at approximately €173 million.
The estimated amount up to end-April relates to the first three months of this year as the levy is paid by employers one month in arrears.
The Public Service pension-related deduction is not included in the Income Tax heading as it is in general collected by Departments as an Appropriation-in-Aid. As such, it has the effect of reducing net voted expenditure. The Public Service pension-related deduction came into effect on 1 March so net expenditure for March and April shows the impact of the pension-related deduction. The revised rates, as outlined in the Supplementary Budget are applicable from 1 May.
Departmental Purchases.
Jim O'Keeffe
Question:107 Deputy Jim O’Keeffe asked the Minister for Finance the position in relation to the acquisition of a second mobile container scanner needed to combat cigarette smuggling; and if he will make a statement on the matter. [18993/09]
I am informed by the Revenue Commissioners that the procurement process for the acquisition of a second mobile scanner is progressing. The Project Team responsible for the acquisition is currently assessing a number of tenders.
Tax Code.
Kathleen Lynch
Question:108 Deputy Kathleen Lynch asked the Minister for Finance his views on temporarily reducing the lower rate of VAT for labour intensive services; and if he will make a statement on the matter. [18950/09]
In Ireland, labour intensive services are in general subject to the reduced rate of VAT of 13.5% including hairdressing, small repair services, window cleaning, and repair/renovation of private dwellings and restaurant services. The reduced VAT rate for labour intensive services is available on the basis that Ireland applied a reduced rate to those services on 1 January 1991.
Prior to the recent adoption by the Council of Finance Ministers (ECOFIN) of a proposal on labour intensive services on 5 May 2009, the majority of other Member States were dependent on an experimental scheme for reduced rates for labour intensive services introduced in 1999 under the EU VAT Directive. In this regard, the ECOFIN Council agreed that reduced rates for certain labour intensive services, including restaurant services, would now be a permanent option for Member States under the VAT Directive.
In the context of this change, it would be possible to further reduce the VAT rate applicable to labour intensive services either through a general reduction in the 13.5% reduced VAT rate or through the introduction of a second lower reduced VAT rate that would apply specifically to such services. However, introducing a second lower reduced rate would further complicate the existing VAT structure in Ireland and lead to demands for the lower reduced rate to be applied to all goods and services currently subject to the 13.5% reduced rate. This would result in a significant cost to the Exchequer; a one percent reduction in the reduced VAT rate would cost €300m in a full year. Given the current Exchequer deficit position, reducing VAT rates would not help support the public finances. In that context we are borrowing to fund day to day public services which is unsustainable as future generations will be required to pay higher taxes unless we correct our public finances.
Pension Provisions.
Liz McManus
Question:109 Deputy Liz McManus asked the Minister for Finance his views on the recent year end results published by a bank (details supplied); his further views, in particular, on the payment of €27.6 million to a person in respect of their pension entitlements; and if he will make a statement on the matter. [18956/09]
As the Deputy will be aware, the pension arrangement referred to was dealt with in the institution's annual report and accounts for 2008. The report notes that the net after tax contributions made by the institution to this scheme was approximately €3 million.
In addition, I asked the Directors appointed under the bank guarantee Scheme to promote the public interest to investigate certain issues relating to the remuneration of the CEO of the institution. The report has just been completed and I, along with my officials, will be reviewing its content in the coming days.
Tax Collection.
Seymour Crawford
Question:110 Deputy Seymour Crawford asked the Minister for Finance the level of VRT received up to 1 May 2009; the way this compares to the same period in each of the years 2007 and 2008; and if he will make a statement on the matter. [19122/09]
As the Deputy is aware, the sale of vehicles, especially of new vehicles, in Ireland and indeed internationally has, due to the contraction in economic activity, declined significantly in the first four months of 2009 compared to previous years.
I am informed by the Revenue Commissioners that the level of VRT received up to 1 May 2009 and the receipts during the same period in 2007 and 2008 are as set out in the following table.
|
Month |
2007 |
2008 |
2009 |
|
€m |
€m |
€m (Prov) |
|
|
January |
67.6 |
215.5 |
32.5 |
|
February |
311.5 |
202.0 |
79.8 |
|
March |
184.8 |
158.9 |
51.0 |
|
April |
176.7 |
113.6 |
47.2 |
|
Total |
740.5 |
690.0 |
210.4 |
Financial Institutions Support Scheme.
Jack Wall
Question:111 Deputy Jack Wall asked the Minister for Finance if he has prepared estimates of the expected capital requirements at banks (details supplied); and if he will make a statement on the matter. [18967/09]
The institutions to which the Deputy refers are covered under the Government's guarantee scheme. This has led to increased scrutiny and oversight of the operations of the institutions and to increased engagement with its management including with regard to each of the institution's capital positions.
As the Deputy will be aware, the Government announced on 7 April 2009 its intention to establish a National Asset Management Agency (NAMA). Assets will be transferred from participating institutions to NAMA with the purpose of ensuring that relevant institutions have a clean bill of health, their balance sheets are strengthened and uncertainty over bad debts is reduced.
The Government will consider the position of relevant institutions on an individual basis in the light of the proposed establishment of NAMA, the capital requirements of the institutions concerned and the requirement to protect the position of the taxpayer. In bringing forward the necessary legislation to establish NAMA and the details that will govern its operation, further discussions will be undertaken with the relevant institutions including the institutions referred to by the Deputy where their participation in NAMA and their future capital positions will be discussed on an individual basis.
Question No. 112 answered with Question No. 69.
Insurance Industry.
Joanna Tuffy
Question:113 Deputy Joanna Tuffy asked the Minister for Finance his views on declines in the solvency situation of insurance companies based here; and if he will make a statement on the matter. [18975/09]
The position under EU law is that both life and non-life insurers must maintain solvency equal to the higher of a fixed Minimum Guarantee Fund or a Required Minimum Solvency Requirement (based on premiums or claims depending on circumstances). In addition to these EU mimima, the Financial Regulator requires that firms maintain solvency of 150% of the Required Minimum Solvency Requirement (200% in the case of newly authorised firms).
My Department has been advised by the Financial Regulator that firms often choose to maintain solvency well in excess of the requirements. In summary therefore, Irish authorised insurers maintain their solvency at safe levels and this is borne out in international comparison. The Financial Regulator has acknowledged that solvency has shown some decline in the last year. However, this is to be expected in the face of the ongoing economic and financial turbulence. Nevertheless, the Regulator is satisfied that the Irish insurance industry continues to maintain a strong solvency position.
Finally, it should be noted that the Financial Regulator has been monitoring insurance firms very closely and continues to do so. The recent introduction of a new quarterly, electronic reporting system for insurance firms has greatly assisted in this regard.
National Asset Management Agency.
Emmet Stagg
Question:114 Deputy Emmet Stagg asked the Minister for Finance if it is envisaged that the National Asset Management Agency will become, in effect, a development company, raising or providing capital for the purposes of completing development projects for the purposes of maximising return; if, in these cases, defaulting developers will be allowed to retain an equity stake in the projects; if NAMA has a planning and development role in view of comments (details supplied); and if he will make a statement on the matter. [18973/09]
NAMA will have a commercial mandate to recover debt and in doing so it will actively manage the loan portfolios that it acquires, taking all necessary steps to ensure the maximum return for the taxpayer.
This role may, on occasion, result in NAMA taking possession of certain incomplete sites or developments. To fully realise the value of such sites or developments NAMA will need the power to ensure that they can be fully developed prior to disposal. There are a number of ways that this can be achieved including through joint ventures or partnerships, special purpose companies or the direct provision of working capital. The powers of NAMA to deal with the workout of incomplete developments will be set out in the NAMA legislation which I propose to introduce before the summer.
Services for People with Disabilities.
David Stanton
Question:115 Deputy David Stanton asked the Minister for Finance the amount of money made available by the State for disability services under the multi-annual investment programme of the national disability strategy; the breakdown of the amount allocated each year and the amount expended each year respectively; and if he will make a statement on the matter. [19097/09]
The Multi–Annual Investment Programme for Disability 2006-2009 to support the development of high priority disability support services, as announced in budget 2005, provided for a total investment of close to €900 million in current and capital expenditure over the period. Development and implementation of the programme in each sector is a matter for the relevant Departments and agencies in the first instance.
The following table provides details of the amounts allocated and expended over the period 2006-2009, as reported to my Department by the relevant Departments.
|
Department |
Estimate 2006 |
Outturn 2006 |
Estimate 2007 |
Outturn 2007 |
Estimate 2008 |
Provisional Outturn 2008 |
Estimate 2009 |
|
€m |
€m |
€m |
€m |
€m |
€m |
€m |
|
|
Health and Children |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
|
Education & Science |
7.0 |
11.0 |
20.0 |
20.0 |
25.0 |
25.0 |
5.0 |
|
Environment Heritage & Local Government |
13.0 |
12.5 |
10.0 |
10.0 |
10.0 |
10.5 |
9.0 |
|
Office of Public Works |
5.0 |
4.2 |
5.0 |
4.1 |
5.0 |
3.3 |
10.0 |
|
Justice Equality and Law Reform |
3.0 |
2.7 |
3.0 |
4.6 |
3.0 |
2.7 |
2.7 |
|
Total |
28.0 |
30.4 |
38.0 |
38.7 |
43.0 |
41.5 |
26.7 |
Details of expenditure under the Multi-Annual Investment Programme in the health area have not been made available to me and I have requested the Department of Health and Children to provide these details directly to the Deputy.
I understand that the allocation and expenditure for OPW under the programme in any year reflects the total resources available, demands on resources, time taken to secure planning approval, to deliver upgraded facilities and other factors such as the large number of new offices with disability compliant facilities.
Departmental Websites.
Enda Kenny
Question:116 Deputy Enda Kenny asked the Minister for Finance if he will report on the implementation of the eGovernment project; and if he will make a statement on the matter. [15564/09]
As the Deputy will be aware, the focus over the past year has been on making progress with those 20 specific services included in the European Commission's eGovernment Benchmarks and those eight specific services identified in the Dáil Joint Motion on eGovernment of 30 April 2008. Good progress has already been achieved with a number of these and work is ongoing with others. Therefore, at this stage, approximately 70 services are fully available online, and forms can be downloaded electronically for hundreds more.
The Government's aim is to have a rolling eGovernment Programme in place. With that in mind, my Department issued Circular 6/09 on Arrangements for eGovernment in March of this year. It requires all Departments, offices, agencies, and all non-commercial public bodies and authorities to develop detailed eGovernment plans by the end of June 2009. These plans must set out additional projects they intend to undertake from hereon in. These plans will be subjected to regular monitoring by my Department and reporting to Government.
To support this work, my Department has established a website on eGovernment specifically for civil and public service bodies. This website provides them with a range of resources to aid and guide them in developing and progressing eGovernment projects. In this regard, my Department has produced a working definition of eGovernment projects that should be included in individual plans. It includes projects that are organisation-specific, cross-organisational, sector-specific or cross-sectoral, and it highlights eight categories of project types such as those providing online information, online transactions, automated transactions, triage facilities, and full business transformation opportunities. This definition may be changed over time as opportunities and priorities develop. Additionally, my Department has produced an eGovernment Planning Advisory Note which provides public bodies with assistance on how to develop a project plan and helps to ensure that such plans contain full details on ownership; timelines; facilities being offered; costs; benefits and impacts; capacity of the organisation to deliver; monitoring arrangements; and progress to date.
Progress has also been made with a number of central eGovernment operations. A central ePayments facility, operated by the Local Government Computer Services Board, is now being used by approximately 60 different public bodies for over 30 different service types worth about €20 million per annum. Since assuming responsibility for the Public Services Broker, my Department has simplified its operation, and integrated its portal with other Government websites such as gov.ie, citizensinformation.ie, and ros.ie. My Department has also implemented a simplified technology solution for the electronic publication of death events to civil and public service. This solution provides a way for authorised public service staff to access records of all recently-registered deaths in a simple and secure way. It is now being used by six Civil Service Departments and Offices, 20 Local Authorities, and a number of HSE functions. Plans are in place to extend this solution to also facilitate the electronic publication of birth and marriage events subject to business needs being identified and the necessary regulatory changes being implemented. My Department has also commenced work on the integration of customer identity data from seven sources around the civil and public service, using the "Public Service Identity dataset". Once completed, this will allow public bodies to better establish the identity of persons in order to maximise re-use of such data and to aid the process of administrative simplification.
My Department is providing the Cabinet Committee on Transforming Public Services with regular updates on developments and progress. Additionally, it is providing the Government with comprehensive progress reports every six months. The first such report was submitted in March 2009.
Finally, my Department is working on developing brochures to explain to people what services are available online, how they can use them, and how they will benefit them. It is intended to publish these in the latter half of the year.
Question No. 117 answered with Question No. 84.
Tax Collection.
Seymour Crawford
Question:118 Deputy Seymour Crawford asked the Minister for Finance the amount of revenue lost to date in 2009 through the exodus of shoppers to Northern Ireland; his views on whether it was a mistake to increase the level of VAT rather than decrease it as was proposed in a Fine Gael motion; and if he will ensure that this mistake is rectified at the earliest possible date; and if he will make a statement on the matter. [19123/09]
As the Deputy may be aware, the Revenue Commissioners and the CSO prepared a report, at my request, on the Implications of cross-Border shopping for the Irish Exchequer. The report was published on my Department's website on 20 March 2009. The report estimated the likely value of cross-Border shopping in 2009 to be in the range of €450 million to €700 million, with a potential loss in Exchequer revenues arising from reduced VAT and excise yields of between €72 million and €112 million. In addition, a possible corporation tax loss in the range of €20 million to €31 million is tentatively estimated. It should, however, be noted that any estimate for corporation tax is provisional and should only be considered as indicative of the potential loss.
The report noted that there is rather limited availability of quantifiable data on cross-Border shopping, and with a view to improving the data available, Revenue and the CSO have worked on questions to be included in the Quarterly National Household Survey that should facilitate a more detailed assessment of cross-Border shopping in the future.
In addition, the report noted that the main causes of price differentials between goods in Northern Ireland and the Republic, are operating costs, profit margin (mark-up), taxes and the rapid depreciation of Sterling against the Euro. While changes in the standard VAT rates have widened some price differentials, their impact remains small compared to the size of the change in the exchange rate.
The standard VAT rate was increased from 21% to 21.5% in budget 2009 as part of a general package of revenue-raising measures to fund key public services. The UK Government, as part of a fiscal stimulus package, then reduced its standard VAT rate from 17.5% to 15% on a temporary basis with effect from 1 December 2008 to 31 December 2009. As I have previously stated, it would appear that the timing of Ireland's VAT increase, given the subsequent temporary reduction in the UK rate, may have sent the wrong signal to consumers. However, given the current Exchequer deficit position, the budget 2009 policy decision of increasing the standard VAT rate continues to be necessary in order to support the public finances. We are borrowing to fund day to day public services which is unsustainable as future generations will be required to pay higher taxes unless we correct our public finances.
National Asset Management Agency.
Emmet Stagg
Question:119 Deputy Emmet Stagg asked the Minister for Finance his views on whether resolving the pricing problem is the key variable in determining the final cost to the taxpayer of the bank rescue plan; his further views on the establishment of an independent valuation board to oversee the pricing of assets transferred to the national asset management agency, similar to the Swedish model in the early 1990s; and if he will make a statement on the matter. [18972/09]
The objective of NAMA is to strengthen the banks' balance sheets which will considerably reduce uncertainty over bad debts and as a consequence ensure the flow of credit on a commercial basis to the real economy, to protect and grow employment while protecting the interest of taxpayers. As I announced in early April, the potential book value of loans that will be transferred to NAMA is in the region of €80 billion to €90 billion, although the amount paid by the Agency will be considerably less than this.
Pending the establishment of NAMA on a statutory basis an interim managing director has been appointed and I will announce an Advisory Committee in the coming days. The establishment of NAMA and interim preparations will also be overseen by the NAMA Steering Group recently established by me and including representatives of my Department, the NTMA and the Office of the Attorney General.
The valuation of the loans, as suggested by the Deputy, will be a very important variable. Preparatory work for the establishment of NAMA which has commenced will include an extensive due diligence on the loans books of the banks to ensure that the appropriate categories or portfolios of loans are transferred to NAMA and that the banks are cleared of their identified riskiest loan portfolios. Loans will be transferred from the banks to NAMA at an appropriate written down value. The development of a valuation methodology by the interim NAMA will take account of the advice of the Advisory Committee and will be consistent with European Commission guidance and subject to EU State aid approval. This will take into account the risk being transferred to the State and an appropriate adjustment for the value of the State support being provided.
The Government has received expert financial, economic, legal and valuation advice at every step of its measured response to the turbulence in the banking sector. Likewise, specialist expertise, including valuation expertise, will be procured by the NTMA to ensure that the work to be done by NAMA when it is established is accomplished in the most efficient manner so as to safeguard taxpayers' interests.
Joe Costello
Question:120 Deputy Joe Costello asked the Minister for Finance when he expects to appoint a permanent chief executive of the National Asset Management Agency; when he expects to appoint a chairman of the National Asset Management Agency; if he proposes that the relevant Dáil committees will have an opportunity to conduct a vetting process of his appointees to NAMA; if he will disclose the remuneration packages in respect of these posts; if the mandates of these office holders are time limited; the organisational and reporting structure of and within NAMA; and if he will make a statement on the matter. [18982/09]
The National Asset Management Agency (NAMA) will be established on a statutory basis, under the aegis of the National Treasury Management Agency (NTMA). NAMA will be an independent commercial entity run on an arms-length basis. It will be staffed by professionals whose objectives will be to maximise returns. Like any commercial entity it will want loan agreements honoured in full and will take all necessary steps to extract value from its acquired loan book.
I intend to introduce the necessary legislation before the summer. Matters such as the appointments and terms and conditions of the board, the chairperson and the managing director as well as governance issues and staff recruitment will be addressed in the legislation. Preparatory work by my Department, the Office of the Attorney General, the NTMA and our legal and financial advisers for the establishment and operation of NAMA on a statutory basis is under way. As is the case with all legislation, the Dáil will have the opportunity to debate the Bill when it is brought before the House.
I recently announced the appointment of Mr. Brendan McDonagh as interim Managing Director of NAMA. By appointing an interim Managing Director, the Government is ensuring the implementation process will be driven forward in the interim period pending legislation. Mr McDonagh will be assisted by a high level advisory committee that I expect to name shortly. I have also directed the NTMA to provide the necessary staffing and other facilities through its existing resourcing arrangements to support the interim operation of NAMA, pending its establishment on a statutory basis.
Bank Deposits.
Mary Upton
Question:121 Deputy Mary Upton asked the Minister for Finance his views on the Central Bank report that the deposit base of Irish banks has fallen by €12 billion since the beginning of 2009; and if he will make a statement on the matter. [18977/09]
I take it that the Deputy is referring to data in the latest Quarterly Bulletin (Q2) of the Central Bank and Financial Services Authority of Ireland (CBFSAI), which indicates that there was a reduction of some €14.7 billion in deposits held in credit institutions reporting to the CBFSAI for statistical purposes from December 2008 to March 2009. This figure includes a reduction of €6.3 billion in the deposits held by Irish residents, most of which is accounted for by a reduction of €4.9 billion in January 2009. A reduction of €7.9 billion held by non-euro area residents was recorded between December and March. This last figure predominantly relates to international banks.
I am informed by the Central Bank that the discrepancy between the €12 billion in the Deputy's question and the €14.7 billion in the latest published statistics is due to a revision upwards in the level of non-euro area resident deposits in December. This revision took place between the time the January Monthly Statistics were published and the date the last Quarterly Bulletin was published.
The Deputy will appreciate that in general, the total value of deposits held in credit institutions included in the Quarterly Bulletin statistics has been quite volatile since September 2008 reflecting uncertainty arising from the global economic and financial turmoil. It is also important to note that credit institutions located in the State can avail of liquidity funding from the European Central Bank.
Tax Collection.
Ruairí Quinn
Question:122 Deputy Ruairí Quinn asked the Minister for Finance his views on the April 2009 Exchequer figures; if he is confident that tax revenue will amount to €34.4 billion for 2009; and if he will make a statement on the matter. [18964/09]
Tax receipts at end-April, at €10.1 billion, are down 24% on the same period last year. This represents 29% of the supplementary budget's forecast of €34.4 billion and is generally in line with the average percentage of the end-year outturn received after four months over recent years.
When looking at the tax revenue figures to end-April it must be borne in mind that the revenue-raising measures announced in the supplementary budget will improve revenues as the year progresses. In addition, there will be a positive base effect upon year-on-year comparisons as 2009 progresses due to the fact that tax revenues worsened during the course of 2008. In overall terms at this stage, based on the current assessment for the economy, my Department still expects that tax revenues will amount to about €34.5 billion, which would represent a 15.5% decline on last year's outturn.
That said, it is still early in the year and, as such, my Department will continue to monitor the situation on an ongoing basis and will report in detail at the mid-year stage in the context of the end-June Exchequer returns press conference.
Financial Institutions Support Scheme.
Michael D. Higgins
Question:123 Deputy Michael D. Higgins asked the Minister for Finance his views on reports that a credit institution covered by the bank guarantee is paying significant bonuses to its front office staff. [18948/09]
Paragraph 47 of the Credit Institutions (Financial Support) Scheme 2008 provides that bonuses for directors or senior executives must be measurably linked to reductions in guarantee charges, reduction in excessive risk-taking and encouraging the long-term sustainability of the covered institutions. The Deputy will appreciate that the terms of the scheme relate in this regard only to directors and senior executives and would not apply to the front office staff to whom he refers.
However, I am aware that the institution in question has previously announced that due to the business performance of the group this year, it would not be awarding any performance bonuses to executives and managers. Furthermore, it also announced that it would not be awarding any performance bonuses to staff. Both of these announcements apply to executives, managers and staff working in the relevant division.
Pat Rabbitte
Question:124 Deputy Pat Rabbitte asked the Minister for Finance his views on the write-downs recently announced by a bank (details supplied) on its commercial property and development loan book; his further views on whether credit institutions covered by the bank guarantee may suffer write-downs to their commercial property and development loan books of a similar or greater magnitude; and if he will make a statement on the matter. [18979/09]
I have noted the write downs on commercial property and the development loan book in the institution referred to by the Deputy for the first quarter 2009. These write-downs led to loan loss impairments of €198m. This figure is specific to the institution concerned and it would be inappropriate for me to comment.
With regard to the institutions covered by the Government guarantee, it is widely known that the value of their commercial property and development loan books has declined. The institutions themselves have acknowledged this through the setting aside of impairment provisions. While the degree of exposure to commercial and development property varies greatly amongst the covered institutions, it is a matter for the Board of each institution to evaluate its loan book and make appropriate provisions.
The Deputy will be aware that banks will have to take an appropriate write-down in value of loans transferred to NAMA taking account of NAMA's objective, which is to operate commercially and optimise the return on such loans over time. While the initial write down of loans may have an effect on the banks' capital, there also will be a reduction in risk weighted assets as a result of the transfer of the loans to NAMA. The setting up of NAMA and transferring the more difficult asset portfolio to it will leave the banks in a stronger position to lend to the real economy and to make profits which will facilitate increases in the banks' capital bases over time.
Bernard J. Durkan
Question:125 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has been able to influence the banking sector to return to traditional banking and lending policies having particular regard to the restoration of public confidence in the banking system; and if he will make a statement on the matter. [18995/09]
A core Government objective is to free up lending on a commercial basis into the economy to support economic growth. In the context of the bank guarantee scheme and recapitalisation the banks have made important commitments to support business lending.
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 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 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.
In addition, 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 make quarterly reports, with the first reports to end-March 2009 to hand. Officials from my Department are also in regular contact with the banks concerned in relation to their progress on implementing these measures.
Furthermore, the banks have agreed to engage in a ‘clearing group' chaired by a Government representative and including representation from business interests and State agencies. The purpose of this group will be to identify specific patterns of events or cases where the flow of credit to viable businesses appears to be blocked and to seek to identify credit supply solutions. Any questions on the clearing group should be directed to my colleague the Tánaiste and Minister for Enterprise, Trade and Employment.
An independent review of credit availability, funded by the banks but managed jointly by the banks, Government and business representatives is also under way and will be completed shortly. Among 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 which will inform future policy.
Budgetary Measures.
Bernard J. Durkan
Question:126 Deputy Bernard J. Durkan asked the Minister for Finance the areas of budgetary strategy implemented since 29 September 2008 which were expected to have a positive impact on economic growth; the degree to which this has been measured in the meantime; if it is intended to introduce policy changes in this area; and if he will make a statement on the matter. [18996/09]
A number of budgetary measures have been implemented which will support economic growth. It is, however, difficult to quantify the impact of these measures.
For instance, the introduction of the pensions levy in the public sector earlier this year will lower the cost of running the public sector and send a positive demonstration effect in terms of private sector wages.
In addition, the Government is helping to support employment and enterprise by redirecting the NDP, as well as implementing a number of activation initiatives to further encourage individuals into employment. The Government is also implementing measures to support the ‘smart economy', through investment and incentives in order to reach an R&D target of 2.5% of GNP by 2013. This will help us re-orient the economy towards the export-led growth which we must achieve.
At a more macro-level, maintaining our public finances on a sustainable path is a pre-requisite for economic growth. In this regard, the various expenditure-reducing and tax-raising measures introduced since October, will have a beneficial impact by restoring confidence as well as improving our competitiveness. As outlined in the recent budget, further measures will be introduced in 2010 and 2011. Notwithstanding these increases in taxation, our tax system remains competitive and pro-enterprise.
Banking Sector.
Martin Ferris
Question:127 Deputy Martin Ferris asked the Minister for Finance the cost to the Exchequer for nationalising Anglo Irish Bank; the expected funding from the State until the end of 2009; the estimated toxic debts of Anglo Irish Bank; if the taxpayer is liable for these debts; and if he will make a statement on the matter. [19105/09]
Under the terms of the Anglo Irish Bank Corporation Act 2009 there is provision for the appointment of an independent assessor to determine the fair and reasonable aggregate value of the Anglo shares transferred and rights extinguished under the terms of the Act, for the purpose of fair and reasonable compensation, if any, in respect of those shares. The outcome of this process is one determinant of the cost to the Exchequer, if any, for nationalising Anglo Irish Bank. To date, no significant direct cost has arisen to the Exchequer in respect of the nationalisation of Anglo. The Government has stated that support will be provided as necessary to maintain Anglo, consistent with EU State Aid requirements.
As the Deputy may be aware, the main exposures at Anglo relate to lending for Land and Development and connected exposures. As for all banks, the treatment of such assets held by Anglo is currently being examined in the context of the establishment of the National Asset Management Agency.
Live Register.
Mary Upton
Question:128 Deputy Mary Upton asked the Minister for Finance the expected impact on the 2009 Exchequer position of the live register reaching 500,000 by the end of 2009; the expected impact on the 2010 Exchequer position, with reference to forecasts made on the occasion of the supplementary budget of 7 April 2009, of the unemployment rate averaging 16.8% in 2010 as forecast by the ESRI; and if he will make a statement on the matter. [18976/09]
In the recent budget, survey based employment was projected to fall by 7.8% this year and by 4.6 % next year. As a result unemployment on this basis was forecast to rise to 12.6 % this year and to 15.5 % next year.
While not designed to measure unemployment, trends in the live register provide an indication as to the more recent labour market trends. The latest figures refer to April and show a seasonally adjusted 389,000 on the live register and a standardised unemployment rate of 11.4 %.
The fiscal projections in the recent budget are based on the assumption that the number on the live register averages 440,000 this year. Implied in this projection is the assumption that the number on the live register exceeds 500,000 by end year. In terms of 2010, the current working assumption is that given the weak economic outlook, unemployment will continue to rise and an average unemployment rate of 15.5% has been factored into my Department's recently published forecasts and provided for in the macroeconomic and fiscal framework released with the supplementary budget documentation.
I am aware of the recent forecasts made by the ESRI. For unemployment next year the ESRI figure is at the upper end of the range of forecasts; the current consensus among economic forecasters is that unemployment at the end of 2010 will be 15.4 %.
Financial Institutions Support Scheme.
Róisín Shortall
Question:129 Deputy Róisín Shortall asked the Minister for Finance his views on the fact that Anglo Irish Bank could be undermining competition in the retail and commercial deposit market here by offering high interest rates on deposits which are covered by the bank guarantee; his further views on whether this is in breach of the terms of the bank guarantee; and if he will make a statement on the matter. [18970/09]
Anglo Irish Bank is being run on an arms length commercial basis. Accordingly, normal commercial decisions, which include determining the retail and commercial deposit rates, are matters for the board of Anglo.
Notwithstanding this, I have been made aware that Anglo Irish Bank has been reducing its rates since the start of the year in line with falling money markets rates. Most recently on Wednesday 6 May 2009 the Bank notified the Financial Regulator that it was again reducing the rates on its Personal Savings accounts. These changes came into effect on 12 May 2009.
Financial Services Regulation.
Denis Naughten
Question:130 Deputy Denis Naughten asked the Minister for Finance the steps which he is taking to address the cost of fixed rate mortgages; the discussions he has had with the Irish Financial Services Regulatory Authority on the issue; and if he will make a statement on the matter. [18811/09]
As the Deputy will be aware, fixed rate mortgages can be regarded as a form of insurance against interest rate changes as fixed rate mortgages provide certainty and security to borrowers regarding the level of their repayments.
As referred to in the Deputy's question in circumstances where many households are faced with significantly increased financial pressures, the current environment of very low interest rates clearly highlights to fixed rate mortgage holders the saving that would be available if they benefited from a variable interest rate. It is clear, therefore, why many fixed rate mortgage holders seek to switch to secure lower repayments.
However, when a borrower signs a fixed-rate mortgage contract with a mortgage provider, the lender in turn enters into an agreement where they borrow the money at an agreed rate. The mortgage lender must repay the money at this agreed rate, so there is a cost to the institution if the fixed rate agreement is terminated before the agreed term which gives rise to the redemption fee charged in these cases.
On 26 March 2009, I undertook, in this House, to raise concerns regarding the level of redemption fees with the Consumer Director of the Financial Regulator who has a statutory mandate to safeguard the interests of consumers. At the beginning of April my Department wrote to the Consumer Director to request confirmation that redemption fees charged for switching from a fixed rate mortgage cover funding costs only and that there are no other costs included.
To date, the Financial Regulator has been able to confirm to my Department, that all mortgage lenders have responded and that all have provided the formula used by that lender when calculating the early redemption fee applying to fixed rate mortgages.
The Financial Regulator is awaiting independent verification, by an actuary, from a number of lenders that the fee being charged recoups only those costs incurred by the lender when financing the fixed rate mortgage. However, the verifications received indicate that the formulae applied by lenders seek to recoup the loss to the lender arising from the early redemption of the fixed rate mortgage and do not seek to apply a penalty charge on the borrower.
The Financial Regulator is also examining whether any other costs are being charged such as administrative fees, etc. Any such charges may be subject to approval by the Regulator under section 149 of the Consumer Credit Act 1995 and will be examined further in that light. To date the responses indicate that most lenders do not levy additional charges in the case of early redemption of fixed rate mortgages.
The Financial Regulator has advised that further analysis may be necessary once all of the information is received and reviewed. Should the remaining analysis by the Financial Regulator indicate that further consideration of this issue is required, it will be carried out.
Banking Sector.
Brian O'Shea
Question:131 Deputy Brian O’Shea asked the Minister for Finance his proposals for treatment of the 20% stake in a retailer (details supplied) accruing to the State as a result of the nationalisation of Anglo Irish Bank which, according to reports, holds a 38.5% stake in a company, which in turn holds a 45% stake in the retailer; and if he will make a statement on the matter. [18958/09]
As the Deputy will be aware, Anglo Irish Bank is being run on an arms length commercial basis. Consequently, normal commercial decisions, which include those in relation to management and control of the loans and collateral held by the bank, are a matter for the Board of Anglo.
Community Employment Schemes.
Arthur Morgan
Question:132 Deputy Arthur Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she is reviewing the terms of reference of community enterprise schemes in view of the significant rise in unemployment; if she will require a re-directing of some of these schemes appropriate to their location; and if she will make a statement on the matter. [19131/09]
Arthur Morgan
Question:133 Deputy Arthur Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on increasing significantly the number of places available on community employment schemes in view of increasing unemployment numbers. [19132/09]
I propose to take Questions Nos. 132 and 133 together.
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. CE helps unemployed people to re-enter the active workforce by breaking their experience of unemployment through a return to a work routine and to assist them to enhance/develop both their technical and personal skills.
The aim of CE still 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. 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.
In April's budget I provided €6.6 million for 400 additional CE places bringing the total number of CE places to 22,700.
This Government will continue to support the positive role of CE in meeting the needs of long-term unemployed persons while at the same time providing essential services to communities. I am keeping the operation of the scheme under constant review in the context of the current difficult unemployment situation.
Industrial Relations.
Joe Costello
Question:134 Deputy Joe Costello asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will ensure that hotels, such as a hotel (details supplied) in Dublin 1, do not lay off their long-term Irish workers for long periods of time; and if she will make a statement on the matter. [19147/09]
I do not have any powers to direct a private company in relation to staff lay offs, nor would it be appropriate for the Government to intervene in the operation of enterprises in this way. Naturally, all companies must act within the laws governing employment of workers and the State's industrial relations machinery is available to those who wish to resolve disputes arising in an orderly way.
However, responsibility for the resolution of industrial disputes is a matter for the parties themselves. The State provides the industrial relations dispute settlement machinery free of charge to assist this process, which, in line with the general principles of industrial relations in Ireland, is voluntarist in nature. The system of industrial relations in Ireland is designed to help and support parties in their efforts to resolve their differences, rather than imposing an extensive set of legislative conditions on parties to an industrial dispute.
The experience and expertise of those providing the State's dispute resolution services offer the best avenue for resolving the differences between disputing parties. Where the parties make full use of these procedures, the evidence shows that a very high percentage of disputes are resolved through the conciliation process.
FÁS Training Programmes.
Mary Upton
Question:135 Deputy Mary Upton asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans for ensuring that FÁS trainees will receive adequate funding in respect of training and materials for the coming year; the budgetary changes which will apply to these allowances or grants; and if she will make a statement on the matter. [19151/09]
The budget for FÁS for 2009 was agreed on the basis of detailed discussions between FÁS, my Department and the Department of Finance in the context of the annual Estimates process. A budget of €1,068,436 was allocated to FÁS for 2009.
This funding will provide for materials and training for those in employment and for those seeking to enter or re-enter the labour market, including workers who may have recently lost their jobs. FÁS training allowances are in line with social welfare rates, which are notified to FÁS by the Department of Social and Family Affairs.
Departmental Expenditure.
David Stanton
Question:136 Deputy David Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment the funding and expenditure allocated to all four elements of the national disability strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if she will make a statement on the matter. [19420/09]
The Sectoral Plan of the Department of Enterprise, Trade and Employment was published in 2006, as required under the Disability Act 2005, and forms a key element of the National Disability Strategy. The total yearly expenditure on disability services by the Department and its agencies under the Sectoral Plan since 2006 is as follows:
|
Year |
Estimate |
Expenditure |
|
€ |
€ |
|
|
2006 |
78,832 |
68,145 |
|
2007 |
76,938 |
71,227 |
|
2008 |
77,772 |
75,369 (provisional) |
|
2009 |
79,072 |
79,072 (provisional) |
|
Total |
312,614 |
293,813 |
Expenditure on disability for 2010 will be considered in the course of the 2010 Estimates process.
Question No. 137 answered with Question No. 82.
Public Sector Remuneration.
Joan Burton
Question:138 Deputy Joan Burton asked the Minister for Finance if the powers provided under the Financial Emergency Measures in the Public Interest Act 2009 include a power by regulation to reduce rents payable by the State and public bodies under leases of land; and if he will make a statement on the matter. [19142/09]
The Financial Emergency Measures in the Public Interest Act 2009 introduced the deduction from the remuneration of public servants who are members of a public service pension scheme or who have an analogous arrangement, provisions to allow public bodies to reduce the professional fees paid by them to external service providers as well as some changes in the early child care supplement and in the Farm Waste Management Scheme. It did not include a power by regulation to reduce rents payable by the State and public bodies under leases of land.
Tax Code.
Róisín Shortall
Question:139 Deputy Róisín Shortall asked the Minister for Finance the reason the income levy is being deducted from the income of a person (details supplied) in Dublin 11 who is a medical card holder; and if he will make arrangements to rectify the situation. [19170/09]
The position is that where an employee holds a full medical card at any time during the year they are exempt from paying the income levy. Where the income levy has been applied to a particular pay period or periods during the year and an employee presents to their employer/pension provider evidence of being in valid possession of a full medical card, the employer/pension provider should make an adjustment at the earliest possible time to refund the income levy deducted. If it is not possible to make an immediate refund, the employer should refund the income levy at the end of the year at the latest.
Where the employee has not been in continuous employment with an employer/pension provider throughout the year in question, the Revenue Commissioners, rather than the employer/pension provider, will deal with any refund of income levy due at the end of the year. The exemption does not apply to those who hold a GP only medical card.
Róisín Shortall
Question:140 Deputy Róisín Shortall asked the Minister for Finance the reason the income levy is being deducted from a private pension of persons (details supplied) in Dublin 9 in view of the fact that this income falls short of the exemption limit; and if he will make arrangements to rectify this oversight. [19171/09]
I am advised by the Revenue Commissioners that each spouse is treated individually throughout the year by their employer/pension provider when the income levy is applied. According to Revenue records, the person in question is aged over 65; therefore the €20,000 per annum (€385 per week) exemption is applied to each pay period. However, no refund can be made during the year.
After the end of the tax year the person can claim a refund of the income levy from the Revenue Commissioners. He will be due a full refund of the levy provided the combined income of the couple (excluding any social welfare payments) is less than €40,000, double the single threshold.
In the case of the exemption for those aged over 65 who are married, the legislation provides for a refund after the end of the year because it would not be possible for the Revenue Commissioners, an employer or pension provider to know during the course of the year whether or not all of the requirements necessary for the exemption to apply have been met. This would include knowing, for example, if the person or their spouse had turned 65 in the tax year, if they had other income sources and the aggregate income from these sources, if there had been a change in employment circumstances or if there had been a change in marital status during the year.
Garda Stations.
Brendan Howlin
Question:141 Deputy Brendan Howlin asked the Minister for Finance if he will confirm the acquisition closure date in relation to the purchase of the site for a new divisional Garda headquarters (details supplied); if will he clarify the licensing arrangements which are outstanding; and if he will make a statement on the matter. [19182/09]
The acquisition was closed on 27 February 2008. Regarding the licensing requirements, the Office of Public Works are obtaining the various clarifications and will revert to the Deputy once obtained.
Tax Code.
Eamon Gilmore
Question:142 Deputy Eamon Gilmore asked the Minister for Finance if he will confirm, with reference to sections 235, 610 and Schedule 15, Paragraph 37, Taxes Consolidation Act 1997 and sections 105 and 54, Finance Act 2007, which give tax exemptions to sporting bodies which have been approved by the Revenue Commissioners, that a tax exempt sports club may not use a capital sum arising from the disposal of assets or the interest on the investment of such a capital sum, to underwrite day-to-day expenses and operating losses and thereby subsidising members’ subscriptions, that the use of such funds as outlined in above would be a breach of the standard income and property clauses under which the tax exemption was granted and that no concession has been granted to any tax exempt sports club for the use of a capital sum or interest arising in the circumstances outlined; and if he will make a statement on the matter. [19198/09]
I am informed by the Revenue Commissioners that section 235 of the Taxes Consolidation Act (TCA) 1997 gives an income tax exemption to sporting bodies, which have been approved by the Revenue Commissioners on the basis that the body has been established for, and exists for the sole purpose of promoting athletic or amateur games or sports. The exemption extends to the amount of the income of the approved body as has been, or will be, applied to the sole purpose mentioned. This approval may be withdrawn by Revenue.
The exemption from Capital Gains Tax for sporting bodies is contained in sections 610 and Schedule 15, Paragraph 37, TCA 1997. Section 54 of the Finance Act 2007 is an anti-avoidance measure and amends Schedule 15 of the TCA. This ensures that, in order for bodies to qualify for the exemption from Capital Gains Tax, the consideration for the disposal for the purposes of the Capital Gains Tax Acts must be applied for the purposes of the bodies concerned if it is greater than the actual proceeds of the disposal giving rise to the gain. In some cases under the CGT code, market value may be imposed as the consideration, which could be higher than the actual proceeds.
Section 105 of the Finance Act 2007 provides for an exemption from Stamp Duty for the acquisition of land by sporting bodies approved under section 235 of the TCA 1997 where the land acquired will be used for the sole purpose of promoting athletic or amateur games or sports. The exemptions discussed above only extend to the amount of the proceeds arising from the disposal of assets, or the interest on the investment of a capital sum, which has been, or will be, used for the sole purpose of promoting athletic or amateur games or sports.
The administration of the exemptions is a matter for the Revenue Commissioners. I am advised by Revenue Commissioners that the detailed application of funds would have to be considered specifically, and in context, in each individual case, to see if the application of funds has any implications for the tax exemption, or the body's approval status in the context of the body being established, and existing, for the sole purpose of promoting athletic or amateur games or sports.
Revenue has also confirmed that bodies that are granted sporting tax exemption are subject to periodic risk-focused review towards ensuring that the terms of the exemption continue to be fulfilled. All relevant matters, including adherence to any income and property clauses attached to the exemption, are considered in the context of such reviews.
Local Authority Staff.
Liz McManus
Question:143 Deputy Liz McManus asked the Minister for Finance if he has received correspondence from public representatives and county council members from County Wicklow in relation to the retention of staff at a centre (details supplied); his view on this correspondence in view of the need to retain these staff members; and if he will make a statement on the matter. [19203/09]
I have received a letter from Wicklow County Council in relation to the retention of staff at the centre. This is a matter in the first instance for the Minister for the Environment, Heritage and Local Government as the circular in question was issued by his Department and local authority staffing matters are his responsibility.
Motor Vehicle Registration.
Niall Collins
Question:144 Deputy Niall Collins asked the Minister for Finance the procedures in place by the Revenue Commissioners for seizing cars; the length of time the Revenue Commissioners can hold a vehicle after the individual has paid the VRT; the procedure used for working out the fine; if an individual who has a vehicle seized can be left at the side of the road; if the VRT or the fine is payable first; and if an individual can decide if he or she has paid the fine to remove the vehicle from the country and avoid the VRT. [19216/09]
I am informed by the Revenue Commissioners that the information requested by the Deputy is as follows. A motor vehicle is detained or seized by authorised Officers of the Revenue Commissioners where there is evidence that it is being retained permanently in the State, is liable to registration and payment of Vehicle Registration Tax (VRT), and its owner has failed to declare the vehicle and pay the VRT due within the period prescribed by law. A Notice of Detention or Seizure is normally issued by the Officer concerned.
In routine cases the seizing officer normally offers terms for local release of a seized vehicle. However, where aggravating circumstances, such as commerciality, fraud or obstruction exist the decision regarding release or otherwise is made by the VRT Prosecution Unit in Bridgend, County Donegal, to whom the officer will report the seizure. Unless the offender is offered an export option, the normal release terms are payment of the VRT due together with a fine or penalty which is calculated by reference to the Category of the vehicle, the amount of VRT evaded and the length of the time the vehicle has been in the State. However, where an individual is not in a position to immediately pay the fine and VRT amounts together, the vehicle can be released on payment of the fine alone on condition of their signing an undertaking to pay the VRT within seven days. A vehicle is normally released once the VRT and the penalty have been paid.
While there is no legal obligation to do so, where a vehicle has been seized, it is normal practice for the seizing officer to ensure that the owner can make arrangements to get to his/her home or place of work. Depending on the circumstances, this may mean driving the person to his home or to the nearest bus stop or train station if the person is unable to make alternative arrangements to be picked up. This is normal practice except where a vehicle has been seized in circumstances of a hostile or aggravated nature.
The decision of whether or not to offer release of the vehicle for removal from the State on payment of an appropriate fine is made by the Seizing Officer. The factors taken into account in arriving at a decision include:
the amount of VRT due;
whether circumstances such as fraud or obstruction exist;
the indications or otherwise of a commercial connotation;
the extent to which the vehicle has been used in the State that may indicate that it was intended to be retained permanently in the State.
If a decision has been made by the Revenue Commissioners to release a vehicle for retention in the State on payment of the VRT and a penalty, then it is not open to the owner of the vehicle to alter the terms of that decision except with the consent of the Revenue Commissioners.
Tax Code.
Paul Connaughton
Question:145 Deputy Paul Connaughton asked the Minister for Finance the reason a voluntary contribution to a private hospital is not allowable under the Charitable Donations Act; if it is intended that such donations will be eligible under this Act in the future; and if he will make a statement on the matter. [19238/09]
I assume that the Deputy's question refers to the scheme for tax relief on donations to eligible charities and other approved bodies which is available under section 848A of the Taxes Consolidation Act 1997. The administration of this scheme is the responsibility of the Revenue Commissioners.
Under the terms of the scheme, tax relief applies to donations which:
Are €250 or greater in one year;
Are in the form of money or quoted securities, or a combination of money and quoted securities;
Are not repayable;
Do not confer a benefit on the donor or any person connected with the donor; and
Are not conditional on, or associated with, any arrangement involving the acquisition of property by the charity or approved body.
In order to be eligible to participate in the donations scheme, a body must have specific approval. In the case of charities, this approval is issued by Revenue and in order to be eligible to apply for such approval, a charity must have had a charitable tax exemption under section 207 of the Taxes Consolidation Act 1997 for a minimum period of 2 years. Other bodies, such as schools, colleges, universities, bodies approved for education in the arts as well as a number of other specified organisations are eligible on foot of their definition as approved bodies by virtue of schedule 26A of the Taxes Consolidation Act 1997. The full details in relation to the terms and conditions of the scheme are outlined in Leaflet CHY 2 which is available on the Revenue website at www.revenue.ie.
In order for a private hospital to avail of the donations scheme it would have to satisfy Revenue in the first instance that it was entitled to a charitable tax exemption. In order to do so it would have to prove that it is not run for the profit of individuals and meets the criteria for charitable tax exemption in all other respects. Full details in relation to the application process (including the application form) are contained in information booklet CHY1 "Applying for Relief from Tax on the Income and Property of Charities" and can be obtained online from Revenue at www.revenue.ie or by ringing Lo call 1890 666 333.
Financial Institutions Support Scheme.
Bernard J. Durkan
Question:146 Deputy Bernard J. Durkan asked the Minister for Finance if in return for guarantees given to the banks, he has sought commitment to ensure that lending policies facilitate the generation of employment; and if he will make a statement on the matter. [19279/09]
Bernard J. Durkan
Question:147 Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he has given instructions to banking and financial institutions in the aftermath of the various salvage packages with a view to providing the necessary capital for the business sector; and if he will make a statement on the matter. [19280/09]
Bernard J. Durkan
Question:148 Deputy Bernard J. Durkan asked the Minister for Finance if he has received commitments from the banking sector in the context of the regeneration of the economy following the various State rescue packages offered to the banking system; and if he will make a statement on the matter. [19281/09]
Bernard J. Durkan
Question:149 Deputy Bernard J. Durkan asked the Minister for Finance if direction has been given to the various lending agencies with a view to the provision of employment generating projects in the private sector; and if he will make a statement on the matter. [19282/09]
Bernard J. Durkan
Question:151 Deputy Bernard J. Durkan asked the Minister for Finance the steps taken to ensure that the lending agencies become aware of the need to provide adequate working capital to the business sector in the present climate; and if he will make a statement on the matter. [19284/09]
I propose to take Questions Nos. 146 to 149, inclusive, and 151 together.
A core Government objective is to free up lending on a commercial basis into the economy to support economic growth. In the context of the bank guarantee scheme and recapitalisation the banks have made important commitments to support business lending. 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 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 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.
In addition, as part of the recapitalisation package announced on 11 February, Allied Irish Banks 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 make quarterly reports, with the first reports to end March 2009 to hand. Officials from my Department are also in regular contact with the banks concerned in relation to their progress on implementing these measures.
Furthermore, the banks have agreed to engage in a "clearing group" chaired by a Government representative and including representation from business interests and State agencies. The purpose of this group will be to identify specific patterns of events or cases where the flow of credit to viable businesses appears to be blocked and to seek to identify credit supply solutions. Any questions on the clearing group should be directed to my colleague the Tánaiste and Minister for Enterprise, Trade and Employment.
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 which will inform future policy.
Financial Services Regulation.
Bernard J. Durkan
Question:150 Deputy Bernard J. Durkan asked the Minister for Finance if his attention has been drawn to the interest rates currently being charged by lending agencies in respect of house improvement or similar loans; the extent to which this is in excess of the interest paid to depositors; if his attention has been further drawn to the need to bring margins into line with the economic climate; and if he will make a statement on the matter. [19283/09]
The decision on the interest rate to be charged by a lending institution for house improvement or similar loans is a commercial decision for the financial institution concerned. This decision will reflect a range of different factors including funding costs, market conditions, profitability and business strategy as well as the competitive environment overall.
The Deputy will appreciate it is a core function of the Board and senior management of each institution to assess where the appropriate balance lies between these competing objectives particularly in ensuring the financial health and commercial viability of the relevant institution. It is not an appropriate role for the Minister for Finance to seek to determine this decision making by financial institutions operating under competitive market conditions. In view of its statutory consumer protection mandate, the Financial Regulator will continue to monitor interest rates charged by financial institutions.
Question No. 151 answered with Question No. 146.
Tax Code.
Bernard J. Durkan
Question:152 Deputy Bernard J. Durkan asked the Minister for Finance if he proposes further incentives to encourage bio-fuel production; and if he will make a statement on the matter. [19285/09]
While the promotion of biofuel is primarily a matter for my colleague, the Minister for Communications, Energy and Natural Resources, the Deputy will be aware the Finance Act 2006 provided for significant tax measures to promote biofuels in Ireland. Under the scheme, biofuel produced under projects approved by the Department of Communications, Energy and Natural Resources are exempt from excise duty. This serves to reduce the additional costs associated with the production of biofuels and consequently allows them to compete with conventional fossil fuels. This fiscal incentive was designed to kickstart the domestic biofuels industry. Long-term general excise reliefs are not anticipated.
In addition, as a complementary measure, the Finance Act 2008 provided for the VAT rate applicable on the supply of miscanthus rhizomes, seeds, bulbs, roots and similar goods used for the agricultural production of bio-fuels to be reduced from 21% to 13.5%. Furthermore, Budget 2007 provided funding for a national top-up of the EU energy crop payment from €45 per hectare to €80 per hectare. This payment is operated by the Department of Agriculture, Fisheries and Food and provides farmers with a further incentive to grow energy crops.
The Deputy might wish to note that there are additional non-fiscal measures that can be used to promote biofuels. To provide further market certainty and encourage projects of scale, the Government signalled its intention to move to a Biofuels Obligation. I understand from my colleague, the Minister for Communications, Energy and Natural Resources that the introduction of the Biofuels Obligation will require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales. The biofuels obligation is designed to provide a long-term market based framework for the development of a biofuels sector and delivery of biofuels targets to 2020. Under the Biofuels Obligation Scheme, suppliers will be compelled to use biofuel in the fuel mix providing a valuable boost to the biofuels industry generally.
The public consultation process in relation to the Biofuels Obligation Scheme was completed at the end of November last and there were 40 submissions received as part of the consultation process. Specific details for a final Biofuels Obligation Scheme are now being prepared which are cognisant of the views expressed by stakeholders following the consultation process. The Minister for Communications, Energy and Natural Resources will be bringing a proposal to Government shortly and introduce the necessary legislation required in order that the Biofuels Obligation Scheme can be introduced in January 2010.
Decentralisation Programme.
Bernard J. Durkan
Question:153 Deputy Bernard J. Durkan asked the Minister for Finance the full extent of the overall costs of decentralisation to date; and if he will make a statement on the matter. [19286/09]
Further to my response on 10th December last, the total amount of expenditure on the property aspects of the programme up to the end of February 2009 is approximately €294m. This is comprised of the cost of site/property acquisitions, fit-out works and rent of approximately €290m expended by the OPW together with some €4m in costs incurred by other organisations.
My reply of 10th December 2008 also set out these other Agency costs. The up to date position in relation to these costs is as follows:
a total of €3.2m expended by FÁS;
a total of €2.65m expended in respect of the HSA (of which €1.80m is included in the OPW figure above)
a total of €0.305m expended by Pobal The costs to date have been offset by property disposals in Dublin.
The total projected income from property disposals in Dublin over the period of the programme amounts to over €570m. This is made up of €373m already received together with property valued at €75 million transferred to the Affordable Homes Partnership.
In addition, the OPW has agreed joint venture redevelopment schemes with an approximate value of circa €125m (subject to current market fluctuations). As expected, non-property costs have been increasing as more posts are located outside of Dublin. At end September 2008, the total non-property costs incurred amount to approximately €12m.
Disabled Drivers.
Bernard J. Durkan
Question:154 Deputy Bernard J. Durkan asked the Minister for Finance when it is expected that action will be taken on the recommendations of the interdepartmental group dealing with the Disabled Drivers’ and Disabled Passengers’ Tax Concession Regulations 1994; the status of the report; if immediate action is intended on foot of the recommendations; and if he will make a statement on the matter. [19287/09]
The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit), and exemption from motor tax, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities. The disability criteria for these concessions are set out in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994. To get a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of these Regulations.
Some 13,000 people benefited under the scheme in 2008 at an overall estimated cost of €76 million. Any changes would have to be considered in the context of the annual Budget.
Economic Competitiveness.
Bernard J. Durkan
Question:155 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has identified inflationary tendencies in the economy which have caused the transfer of jobs to more cost effective locations overseas; and if he will make a statement on the matter. [19288/09]
The Irish economy's competitive position deteriorated since the early part of this decade. Reasons for our decline in competitiveness include an appreciation of the euro as well as wage costs increasing at a rate faster than productivity improvements. In addition, inflation in Ireland was above the euro area average from 1999 to 2007. As a result, consumer price levels in Ireland are now about a quarter greater than the euro area. All of these factors increased the relative cost of doing business here.
In terms of prospects, we expect the Harmonised Index of Consumer Prices in Ireland to fall by about 1½ per cent this year, a larger fall than the euro area average. A short period of price falls which will assist price convergence towards euro area levels is welcome. Nevertheless, the factors causing this decline are temporary and we expect inflation to return to low, but positive territory next year in Ireland. It would also appear that labour costs have also begun to fall. While up-to-date official statistics are not yet available, there are indicators of pay cuts here in Ireland. In addition, the public service pension-related deduction recently instituted in the light of the pressures on the public finances should have a positive demonstration effect in the private sector which will have a beneficial knock-on effect for competitiveness.
Ireland continues to perform very well in terms of attracting investment from abroad. Despite global economic difficulties, 2008 was a very good year for inward investment with a total of 130 FDI projects won, 8,800 new jobs created and a projected investment of circa €420m in IDA-supported companies. There was an increase of 16% in the number of new companies setting up in Ireland for the first time, as well as a 22% increase in research, development and innovation projects, which totalled 56 projects. It is important to recognise that even in turbulent economic times there is still FDI to be won.
National Debt.
Bernard J. Durkan
Question:156 Deputy Bernard J. Durkan asked the Minister for Finance the expected national debt at the end of 2009; and if he will make a statement on the matter. [19289/09]
I am advised by the National Treasury Management Agency that, in line with the Exchequer Borrowing Requirement for 2009 of some €20 billion as set out in the Supplementary Budget, the National Debt will increase to some €71 billion by end 2009. This equates to a General Government Debt ratio at end 2009 of 59% of GDP. The General Government Debt measure does not allow for the offsetting of cash balances or other assets such as the National Pensions Reserve Fund which stand at about 20% of GDP.
Although the debt level will rise over the coming years, it is rising from a low base and it should be borne in mind that Ireland's General Government Debt ratio at end 2009 will still be below the euro area average, which the EU Commission has forecast will be 77.7% in 2009.
Departmental Expenditure.
Bernard J. Durkan
Question:157 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has monitored public spending throughout all Departments in each of the past two years; the expected outturn for the end of 2009 in respect of such expenditure; if this is expected to be in accordance with projections; and if he will make a statement on the matter. [19290/09]
My Department has reported to Government on all expenditure by Departments on a monthly basis since February 2002. This was supplemented by bi-monthly Expenditure Management Reports from the Departments of Social & Family Affairs, Health & Children, Justice, Equality & Law Reform and Education & Science from 2003. Departments with capital expenditure in excess of €250 million were required to report on their capital expenditure on a bi-monthly basis from 2005. Following a streamlining exercise, the Departments of Transport and Environment, Heritage & Local Government will give detailed reports on capital expenditure from 2009.
Total expenditure in 2009, as published in the Revised Estimates for Public Services 2009 on 23 April 2009, is estimated to be €63.9 billion in gross terms, or €47.4 billion in net terms.
Infectious Diseases.
James Reilly
Question:158 Deputy James Reilly asked the Minister for Health and Children the clinical role of public health doctors in the management of a flu pandemic; the persons who are the front line service providers in the event of such a pandemic; if there is a clearcut modus operandi for obtaining swabs and having these swabs brought in a timely fashion to a virology laboratory; if the public health and community care doctors will see, screen and treat patients out of normal nine to five office hours; if so, the location at which they will do so; if, in the event of the public and community care doctors refusing to see patients out of hours they are then in breach of their contractual obligations; if a patient is in need of tamiflu after pharmacy normal working hours, the location at which this will be available; the arrangements in place to communicate in real time to a general practitioner; the role they will play in an outbreak; and if she will make a statement on the matter. [19558/09]
Jan O'Sullivan
Question:160 Deputy Jan O’Sullivan asked the Minister for Health and Children if, with regard to the management of a possible flu pandemic, public health and community care doctors are deemed to be front line service providers; if these doctors will screen and treat patients out of normal nine to five office hours; if so, the location at which they will do so; if refusal to do so will be in breach of their contractual obligations; if a patient is in need of tamiflu after pharmacy normal working hours, the location where this will be available; and if she will make a statement on the matter. [19140/09]
I propose to take Questions Nos. 158 and 160 together.
A national plan for pandemic influenza was put in place in January 2007, describing the health system response to a possible worldwide pandemic. This was activated on receipt of a public health alert from the WHO on Friday, 24th April 2009 indicating that human cases of influenza type A (H1N1) virus infection had been identified. As part of this response, the HSE has put in place arrangements to distribute antivirals through public health departments for the treatment of initial cases of Influenza A(H1N1) and their close contacts. Detailed guidance has also issued to Public Health Doctors and G.P.'s for the management of persons who may have influenza A(H1N1) by the HSE.
Since the outbreak there has been good cooperation from public health doctors in dealing with the influenza outbreak and it is anticipated that this will continue. The Labour Relations Commission has now brokered an agreement between the HSE and the IMO on a structured out-of-hours public health service. I am advised that the Irish Medical Organisation will ballot its senior public health doctor membership this week on the agreement, and a favourable outcome should result in the service being implemented from the beginning of June.
I have requested that the HSE reply directly to you on operational matters.
Hospital Services.
Jan O'Sullivan
Question:159 Deputy Jan O’Sullivan asked the Minister for Health and Children if the issues that have prevented the opening of a paediatric high-dependency unit at the Mid-Western Regional Hospital have been resolved; when the unit will open; and if she will make a statement on the matter. [19139/09]
As this is a service matter, it has been referred to the HSE for direct reply.
Question No. 160 answered with Question No. 158.
Health Services.
Joan Burton
Question:161 Deputy Joan Burton asked the Minister for Health and Children if she will provide a list of all voluntary not-for-profit organisations providing home help and home care package services to the State and information (details supplied) in relation to each organisation for 2008 and the first quarter of 2009. [19141/09]
The Home Help Service and Home Care Packages are delivered either directly by the Health Service Executive, or by agencies on behalf of the Executive. Under the circumstances, I have referred this question to the Executive for direct reply to the Deputy.
Hospital Waiting Lists.
Michael Creed
Question:162 Deputy Michael Creed asked the Minister for Health and Children when a person (details supplied) in County Cork will be called for an outpatient appointment; and if she will make a statement on the matter. [19155/09]
The management of out-patient waiting lists is a matter for the HSE and the individual hospitals concerned. I have, therefore, referred the Deputy's question to the Executive for direct reply.
Health Services.
Caoimhghín Ó Caoláin
Question:163 Deputy Caoimhghín Ó Caoláin asked the Minister for Health and Children if changes in funding or administration of the home help scheme has been introduced; the spending on the scheme in 2007; the figure allocated for 2009; the number of applications approved and hours provided in 2007 and the comparable projected figures for 2009; and if she will make a statement on the matter. [19156/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
State Compensation Payments.
Ruairí Quinn
Question:164 Deputy Ruairí Quinn asked the Minister for Health and Children if her attention has been drawn to the fact that the lifelong monthly compensatory payment to the 32 acknowledged Thalidomide survivors is linked to social welfare scales, despite the sustained objections made by an association (details supplied) because of the declining health of the survivors, and the fact that the payments have not been increased; if she will confirm that these payments will not be abolished and that, as a symbolic gesture, to ensure the Christmas payment will also be maintained because the normal payments have been so low; and if she will make a statement on the matter. [19160/09]
Ruairí Quinn
Question:165 Deputy Ruairí Quinn asked the Minister for Health and Children when she will respond to an association (details supplied) which she met before Easter 2009 on the issues which were raised with her; if an official decision has been made by her; if the association will receive notification of the decision; and if she will make a statement on the matter. [19162/09]
I propose to take Questions Nos. 164 and 165 together.
The Deputy will be aware that the Irish Thalidomide Association (ITA) has met with my colleague, the Minister for Health and Children and Department officials, to discuss a review of the lump sum compensation and monthly allowance provided by the State. The Association has been informed that, having examined the issues outlined in the ITA submission, the Minister has decided to ask the State Claims Agency to assess the Association's requests in the context of Irish and International provisions for victims of thalidomide and in the context of Irish case law and precedent; and to advise the Minister accordingly. Any proposal which comes out of this process will need to be considered by Government in view of the State's current financial circumstances and the possible consequences for other State compensation payments. The Association will be kept informed of progress on the matter.
With regard to the Deputy's specific question regarding the monthly allowance paid to individual victims of thalidomide, this monthly allowance for life was granted by the Irish Government in 1975 and is administered by the Department of Health and Children. In 1975 the monthly allowance was up to €95; in 2009 the monthly amount is up to €1,100. It is tax-free; it is not reckonable for State benefits and each individual recipient has a medical card.
In relation to the claim that the payments have not been increased, the Deputy might wish to note that the payments have increased each year. On average, payments are ahead of the 1975 payments at a rate of 2.5% per annum above the Consumer Price Index. At a total level, the current value of past payments, including the lump sum and monthly allowance, range from €186,000 for recipients of the minimum payment to €568,000 for recipients of the maximum payment. Since the early 1990's, the annual increases in the allowance are in line with general social welfare increases applied to payments administered by the Department of Social and Family Affairs. There are no plans to discontinue this link or to abolish the allowance.
Payment of a Christmas Bonus to certain social welfare payment recipients and certain schemes operated by the Department of Health and Children, including the monthly allowance to thalidomide sufferers, has been granted by way of an annual Government decision, approval for which is sought by the Department of Social and Family Affairs. I have been advised by that Department that the decision to discontinue funding for the Christmas Bonus is in line with the Government objective of restoring order and stability in the public finances.
Mental Health Services.
Andrew Doyle
Question:166 Deputy Andrew Doyle asked the Minister for Health and Children the alternative programme for the care of the patients of St. Loman’s and Newcastle Hospitals in the event of the sale of these two hospitals; and if she will make a statement on the matter. [19169/09]
"A Vision for Change", the Report of the Expert Group on Mental Health Policy, provides a framework for action to develop a modern, high quality mental health service over a seven to ten year period. The Report recommends the closure of all psychiatric hospitals and the reinvestment of the resources released by these closures in mental health services. It emphasises that this process should take place on a phased basis with wards closing sequentially; hospitals can only close when the clinical needs of the remaining patients have been addressed in more appropriate settings such as community residences, day hospitals and day centres.
The HSE has developed a strategy for the phased closure of the remaining hospitals and the relocation of patients to community based accommodation in line with the recommendations of ‘A Vision for Change'. In these circumstances the question has been referred to the HSE for direct reply.
Children in Care.
Aengus Ó Snodaigh
Question:167 Deputy Aengus Ó Snodaigh asked the Minister for Health and Children if she is satisfied with the level of supervision afforded to children residing in the Grove Lodge unit for homeless children on the grounds of St. Ita’s Hospital, Portrane; and if she will make a statement detailing the form this supervision takes. [19188/09]
As this is a service matter it has been referred to the HSE for direct reply.
Aengus Ó Snodaigh
Question:168 Deputy Aengus Ó Snodaigh asked the Minister for Health and Children if the social services inspectorate will investigate and report on the quality of supervision afforded to children residing in Grove Lodge unit for homeless children on the grounds of St. Ita’s Hospital, Portrane. [19189/09]
The Social Services Inspectorate of the Health Information and Quality Authority carries out inspections of HSE children's residential centres under Section 69 (2) of the Child Care Act 1991. Following this a report of the inspection is produced with recommendations for improvements, if required. Reports from inspections are published on HIQA's website http://www.hiqa.ie/and are forwarded to the centre inspected and the HSE local area manager, where relevant. An action plan to achieve the recommendations is requested from the service provider.
Grove Lodge is a new centre, established since January 2009. Grove Lodge amalgamated the services previously provided by Park View and St. Jude's in Dublin North Central — both of which had been inspected by the Authority. As part of its ongoing schedule of on-site inspections, an inspection date for Grove House had already been set by the Authority and will take place on May 14th 2009.
Denis Naughten
Question:169 Deputy Denis Naughten asked the Minister for Health and Children the number of separated children who have gone missing from Health Service Executive care annually since 2002 to date in 2009; the facilities from which each of these children went missing; the number of children annually since 2002 to date in 2009 who have been found; and if she will make a statement on the matter. [19204/09]
As this is a service matter it has been referred to the HSE for direct reply.
Services for People with Disabilities.
James Reilly
Question:170 Deputy James Reilly asked the Minister for Health and Children the reason the failure of the Health Service Executive to provide suitable and adequate services to one teenager has deprived other families of children and adults with special needs much needed respite by denying them access to this respite facility (details supplied); the provisions the HSE midlands area has made to address this issue; and if she will make a statement on the matter. [19214/09]
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.
Care of the Elderly.
Paul Connaughton
Question:171 Deputy Paul Connaughton asked the Minister for Health and Children the position of an application by a service (details supplied) in County Galway for grant aid for an extension to its premises at Portumna, County Galway; if her attention has been drawn to the need for such an extension in view of the increase in demand for services for the elderly at this day care centre; and if she will make a statement on the matter. [19237/09]
RAPID and CLÁR are joint initiatives involving the Department of Community Rural and Gaeltacht Affairs (DCRAGA) and the Health Service Executive (HSE). While the relevant agencies were involved in the assessment of projects sent forward for consideration, the HSE as the lead agency is responsible for the contractual arrangements involved in each of these projects. The Government recently announced an examination of all current and capital expenditure as part of it's decision to introduce further measures to stabilise the public finances. The HSE have subsequently resubmitted both CLÁR and RAPID programmes for re-approval to the Department of Finance. As this is a service matter it has been referred to the Health Service Executive for direct reply.
Child Care Services.
Simon Coveney
Question:172 Deputy Simon Coveney asked the Minister for Health and Children if a centre (details supplied) in County Cork will receive funding for a community child care centre; and if she will make a statement on the matter. [19258/09]
As the Deputy is aware the National Childcare Investment Programme 2006-2010 (NCIP) is implemented by my Office. Capital grant applications under the NCIP are processed in the first instance by the City and County Childcare Committees and are then forwarded to Pobal, who assist my Office in the day to day implementation of the programme, before being submitted for decision. A significant number of capital grant applications, including that of the applicant in question, were due to be considered for approval in the latter part of 2008.
As the Deputy will be aware it became necessary at that point to review Government expenditure, particularly in regard to new expenditure commitments. This process was finalised last month and all capital grant applicants under the NCIP were advised that funding could not be approved at this point under the programme. The capital allocation available to the NCIP is sufficient to meet existing capital grant commitments but is not expected to allow for the approval of any additional grant applications in 2009 or 2010.
Medical Cards.
Bernard J. Durkan
Question:173 Deputy Bernard J. Durkan asked the Minister for Health and Children when a full medical card will be restored in the case of persons (details supplied) in County Kildare; and if she will make a statement on the matter. [19273/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
Bernard J. Durkan
Question:174 Deputy Bernard J. Durkan asked the Minister for Health and Children when a medical card will issue in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [19274/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
Hospital Waiting Lists.
Bernard J. Durkan
Question:175 Deputy Bernard J. Durkan asked the Minister for Health and Children when a person (details supplied) in County Kildare will be offered surgery for a knee replacement in view of the fact that they have been waiting for same for more than a year and are in constant pain; and if she will make a statement on the matter. [19389/09]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
Hospitals Building Programme.
Charlie O'Connor
Question:176 Deputy Charlie O’Connor asked the Minister for Health and Children if she has plans to review the decision to develop a new children’s hospital on the Mater Hospital site, Dublin; her views on the view of this Deputy that the choice of the Mater site is a mistake and that this particular site is generally not accessible and represents serious difficulties; her further views on the difficulties which this decision creates for those families currently catered for in Crumlin Children’s Hospital and the National Children’s Hospital at Tallaght; and if she will make a statement on the matter. [19393/09]
The Children's Health First report commissioned by the Health Service Executive indicated that the population and projected demands in this country can support only one world class tertiary paediatric hospital. It recommended that the hospital should be in Dublin and should, ideally, be co-located with a leading adult academic hospital. Following detailed consideration, it was decided that the most appropriate location for the new National Paediatric Hospital is at the Mater Hospital.
The hospital will also include an associated Ambulatory and Urgent Care Centre at Tallaght which is to open in advance of the new hospital. This Centre will offer a wide range of services including urgent care consultations, outpatient services and day surgery. This will ensure that many children who do not require admission can continue to access care locally.
There are no plans to review the decision regarding the location of the hospital. The decision was reached after an objective, transparent analysis, and the Government is committed to proceeding with the project as a priority.
National Disability Strategy.
David Stanton
Question:177 Deputy David Stanton asked the Minister for Health and Children the funding and expenditure allocated to all four elements of the national disability strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if she will make a statement on the matter. [19422/09]
The National Disability Strategy supports and reinforces equal participation in society of people with disabilities and comprises five elements: the Disability Act 2005; the Education for Persons with Special Educational Needs Act 2004; the Citizens Information Act 2007; sectoral plans published in 2006 by six Government Departments and a commitment to a multi-annual investment programme for disability support services of €900 million for the period 2006-2009 across all Government Departments.
As part of the Multi-Annual Investment Programme 2006-2009 under the Disability Strategy, the Government provided the Health Service Executive (HSE) with an additional €100 million in both 2006 and 2007. This funding included monies to provide new and enhanced services for people with disabilities, to implement Part 2 of the Disability Act 2005, which came into effect on June 1st 2007 for the under fives and also for the continuation of the implementation of the transfer of persons with intellectual disability from psychiatric hospitals and other inappropriate placements.
The Government also honoured its promise in relation to the multi-annual investment programme for people with disabilities, with a further €50 million investment in the 2008 budget. The Government emphasised its commitment to people with disabilities by allocating an additional €10 million in budget 2009 to enable the services provided to children with special educational needs to be enhanced and strengthened.
The additional €10 million allocated to the HSE will provide for 125 additional therapy posts in the disability and mental health services, targeted at children of school-going age. Of this, an additional 90 posts will be provided in the disability services area, to include speech and language therapists, occupational therapists, physiotherapists and psychologists for children's disability services. There will be 35 additional posts for the child and adolescent mental health services, including clinical psychologists, occupational therapists, speech and language therapists and social workers for new and existing multi-disciplinary teams.
In relation to the figures for expenditure, I have referred the Deputy's question to the Health Service Executive for direct reply.
Rural Transport Services.
Denis Naughten
Question:178 Deputy Denis Naughten asked the Minister for Transport the steps which he is taking to reinstate rural transport services which have been withdrawn in County Roscommon; and if he will make a statement on the matter. [19217/09]
Pobal administers the Rural Transport Programme (RTP) on behalf of my Department and is working with 37 individual rural transport groups around the country, including groups in County Roscommon, to address local public transport service needs and having regard to the availability of resources. A list of RTP groups is available on the Pobal website at www.pobal.ie.
Funding of €11 million is being provided by my Department for the RTP in 2009, an increase of €1 million on the provision for 2008. My Department has no role in relation to the day to day management of the Programme, including the allocation of specific funds to particular groups or for services.
The bottom-up approach which was developed during the pilot Rural Transport Initiative demonstrated that local communities know best where the transport needs are in their rural areas and how best to address those needs. In line with that approach, RTP groups are, therefore, responsible for deciding on the specific services to be provided and the methods of provision.
Road Network.
Michael Ring
Question:179 Deputy Michael Ring asked the Minister for Transport the amount of funds allocated by his Department for county road maintenance in County Mayo for 2009; and if he will compare this allocation to the funds allocated under this heading for each of the past five years in tabular form. [19227/09]
Details of road grants allocated to Mayo County Council for maintenance work on regional and local roads in 2009 and in each of the past five years are set out in the Table.
|
Year |
Maintenance Grant allocation |
|
€ |
|
|
2004 |
5,344,000 |
|
2005 |
5,731,000 |
|
2006 |
6,848,000 |
|
2007 |
7,302,000 |
|
2008 |
7,566,000 |
|
2009 |
7,566,000 |
Road Traffic Offences.
Thomas P. Broughan
Question:180 Deputy Thomas P. Broughan asked the Minister for Transport if he has reviewed recent research by the transition year class at a school (details supplied) in County Kerry into the so-called boy racer phenomenon which concluded that for sale signs and numbers printed on modified cars are being used to advertise potentially dangerous car races; his views on introducing a by-law to ban the use of numbers in this way; and if he will make a statement on the matter. [19239/09]
I have received a report from the transition year class students and will be responding shortly to the Deputy who brought it to my attention. I would like to thank the students for their work, it is encouraging to see young people taking such interest in road safety.
There is no legal basis in the Road Traffic Acts for the introduction of bye-laws as envisaged by the Deputy.
Enforcement is a matter for the Department of Justice, Equality and Law Reform and An Garda Síochána.
Rail Services.
Ciarán Cuffe
Question:181 Deputy Ciarán Cuffe asked the Minister for Transport if his attention has been drawn to the plans to remove passing spaces and cut capacity on the Limerick to Waterford rail line to such an extent that services would have to be withdrawn; and if he will make a statement on the matter. [19266/09]
This is an operational matter for Iarnród Éireann and I have no function in the matter.
Public Transport.
David Stanton
Question:182 Deputy David Stanton asked the Minister for Transport the funding and expenditure allocated to all four elements of the national disability strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if he will make a statement on the matter. [19423/09]
Transport Access for All, my Department's Sectoral Plan under the Disability Act 2005, sets out a series of policy objectives and targets for accessible public transport across all modes — including air and marine transport, accessible to people with mobility, sensory and cognitive impairments. In general, the timescales for the various elements of the Plan are expected to be completed by 2015.
Significant resources for public transport accessibility are being provided under Transport 21, the Government's public transport capital investment framework for the period 2006 — 2015. Accessibility is being built into new public transport infrastructure projects and funding is also being provided to continue the phased retrofit of existing infrastructure.
Transport Access for All promotes the principle of mainstreaming by requiring accessibility to be an integral element of the public transport services. Arising from this, accessibility features are now incorporated into rail rolling stock and buses funded by the Exchequer and into rail stations and bus depots from the design stage and cannot be readily identified and costed. In addition there is expenditure on the retrofitting of public transport projects. The allocation for this year is €20 million. Annual figures for expenditure over the period 2005 — 2008 are reflected in the table:
|
2005 Allocation/Outturn |
2006 Allocation/Outturn |
2007 Allocation/Outturn |
2008 Allocation/Outturn |
|
€m |
€m |
€m |
€m |
|
10/5.5 |
15/8.6 |
12/10.6 |
15/10.3 |
Road Traffic Offences.
Thomas P. Broughan
Question:183 Deputy Thomas P. Broughan asked the Minister for Justice, Equality and Law Reform if he is considering taking action to address the problem of boy racers in local communities; and if he will make a statement on the matter. [19239/09]
One of the strategic goals set out in the Garda Síochána Corporate Strategy 2007-2009 is to significantly reduce the incidence of fatal and serious injuries and improve road safety.
I am informed by the Garda authorities that a number of initiatives to target the activities of young male drivers have been established. Specific areas identified as places where young drivers congregate are targeted. As a result, uniform members of An Garda Síochána, supported by Divisional Traffic Corps personnel, establish checkpoints and enforce in a highly visible manner the provisions of the Road Traffic Acts.
These initiatives have resulted in detections being made for a wide range of road traffic offences, including offences relating to dangerous driving, careless driving, no silencer fitted, L plates not displayed, identification plates not conforming with legislation, road tax offences, insurance and driving licence offences, speeding offences, dangerously defective vehicles and modified vehicles. Offences detected are dealt with by way of prosecution, fixed charge notice or, where appropriate, through the Juvenile Diversion Programme.
All uniform members of An Garda Síochána are tasked with enforcing the relevant legislative provisions. Regular mobile patrols take place and roving checkpoints are established throughout the Garda Divisions.
In addition websites are monitored so as to establish where such anti-social activities are taking place with a view to providing an appropriate response. Garda road safety awareness programmes are conducted in schools, third level colleges, factories, workplaces and other facilities, with the aim of educating road users of the obligations on all road users under the Road Traffic Acts and to promote road safety among the target group.
Citizenship Applications.
Charles Flanagan
Question:184 Deputy Charles Flanagan asked the Minister for Justice, Equality and Law Reform the position regarding the application for Irish citizenship in respect of a person (details supplied) in County Offaly; and if he will make a statement on the matter. [19137/09]
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 April 2009.
On examination of the application submitted it was determined that the application in its entirety be returned to the person concerned for further attention on 14 April, 2009. In order to be fair to all applicants, only valid applications can be considered.
It is open to the person in question to re-submit the application to the Citizenship Division of my Department at any time.
Proposed Legislation.
Joe Costello
Question:185 Deputy Joe Costello asked the Minister for Justice, Equality and Law Reform if his attention has been drawn to the fact that management companies are refusing to provide the full range of services to apartment owners in view of the fact that so many of the owners are unemployed and cannot pay the fees; if he will ensure that the regulation of management companies Bill is introduced and passed without delay; and if he will make a statement on the matter. [19144/09]
The position is that legislation to address the Law Reform Commission's recommendations on multi-unit developments is in the course of being drafted by the Parliamentary Counsel as a matter of priority. The intention is to publish the Bill in this Session.
The principal focus of the new Bill will be on ensuring good governance of property management companies and similar bodies which comprise the owners of units within multi-unit developments and which exercise management functions in relation to such developments. It will also include provisions for the resolution of disputes arising in relation to such matters. The range of services to be provided, and the extent of such provision, are matters to be decided by the property management company based on the agreement of the unit owners who make up the company.
Residency Permits.
Joe Costello
Question:186 Deputy Joe Costello asked the Minister for Justice, Equality and Law Reform the position in regard to a person (details supplied); and if he will make a statement on the matter. [19146/09]
I wish to inform the Deputy that the person to whom he refers was granted permission to remain in the State in April of 2000 under the arrangements then in place for the parents of Irish citizen children.
I am informed that the person concerned was subsequently arrested in the UK and convicted of a criminal offence for which he served a custodial sentence. Following his release the person concerned made a request to re-enter the State. This request was refused by my Department. However, it would appear that, on an unknown date, the person concerned re-entered the State illegally. The status of the applicant in the State is currently being assessed and he will be contacted directly and notified of any decision made in this regard.
Citizenship Applications.
Paul Kehoe
Question:187 Deputy Paul Kehoe asked the Minister for Justice, Equality and Law Reform the status of the naturalisation applications for persons (details supplied); when a decision will be made; and if he will make a statement on the matter. [19166/09]
Applications for certificates of naturalisation from the persons referred to in the Deputy's Question were received in the Citizenship Division of my Department in March 2009.
The average processing time from application to decision is now at 23 months. The Citizenship Division is currently commencing further processing of applications received in late 2007. More complicated cases can at times take more than the current average while an element of straight forward cases are now being dealt with in less than that time scale.
There is a limit to the reduction in the processing time that can be achieved as applications for naturalisation must be processed in a way which preserves the necessary checks and balances to ensure that the status of citizenship is not undervalued and is only given to persons who genuinely satisfy the necessary qualifying criteria.
Crime Levels.
Aengus Ó Snodaigh
Question:188 Deputy Aengus Ó Snodaigh asked the Minister for Justice, Equality and Law Reform if he will provide a breakdown of figures for public order, robbery and theft offences and the number of cautions issued to children in the Portrane-Donabate area each month since July 2008. [19190/09]
The Garda Síochána Act 2005 makes provision for the compilation and publication of crime statistics by the Central Statistics Office, as the national statistical agency, and the CSO has established a dedicated unit for this purpose.
I have requested the CSO to provide the statistics sought by the Deputy directly to him.
Anti-Social Behaviour Orders.
Seán Connick
Question:189 Deputy Seán Connick asked the Minister for Justice, Equality and Law Reform the amount of anti-social behaviour orders issued to juveniles since their introduction; and if he will make a statement on the matter. [19192/09]
Part 11 of the Criminal Justice Act 2006, which provides for civil proceedings in relation to anti-social behaviour by adults, was commenced on 1 January, 2007. Part 13 of the Act relating to anti-social behaviour by children was commenced on 1 March, 2007. These provisions set out an incremental procedure for addressing anti-social behaviour by adults and children.
I am informed by the Garda authorities that up to 30 April, 2009 804 behaviour warnings have been issued to children. Twelve formal good behaviour contracts, which are used only in the case of children, have been entered into, and three behaviour orders have been issued to children by the courts.
Residency Permits.
Bernard Allen
Question:190 Deputy Bernard Allen asked the Minister for Justice, Equality and Law Reform when a decision will be made on the application for residency by a person (details supplied) in County Cork. [19205/09]
The person concerned applied for asylum on 3 July 2002. 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 14 May 2003, 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 at that time.
By letter dated 22 January 2009, the person concerned was notified of her entitlement to apply, within a specified timeframe, for Subsidiary Protection in the State in accordance with the European Communities (Eligibility for Protection) Regulations 2006 (S.I. No. 518 of 2006). She was also advised at that time that she could, if she so wished, update her representations for temporary leave to remain in the State.
The person concerned did not submit an application for Subsidiary Protection in the State nor have updated representations been received from, or on behalf of, the person concerned.
The case file of the person concerned now falls to be considered in accordance with the provisions of Section 3 of the Immigration Act, 1999 (as amended). All representations submitted by and on behalf of the person concerned will be fully considered, under Section 3(6) of the Immigration Act, 1999 (as amended) and Section 5 of the Refugee Act, 1996 (as mended) on the prohibition of refoulement, before the file is passed to me for decision.
Garda Strength.
Michael Ring
Question:191 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the strength of An Garda Síochána at 1 January 2008, 1 April 2008, 1 July 2008, 1 October 2008, 1 January 2009 and 1 Apr 2009 in tabular form. [19206/09]
I am informed by the Garda Commissioner that the personnel strength of An Garda Síochána, for each quarter requested by the Deputy, was as set out in the table.
|
Date |
Strength |
|
31/12/2007 |
13,755 |
|
31/03/2008 |
13,900 |
|
30/06/2008 |
14,091 |
|
30/09/2008 |
14,284 |
|
31/12/2008 |
14,411 |
|
31/03/2009 |
14,522 |
*Statistics are compiled on an end of month basis.
Michael Ring
Question:192 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the number of gardaí who retired from the force each month since 1 January 2008; and the expected numbers to retire for each of the next three months in tabular form. [19207/09]
I am informed by the Garda Authorities that the number of Gardaí who retired from the Force in each month since January 2008 was as set out in the table.
|
2008 |
2009 |
|||||||||||||
|
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
Jan |
Feb |
Mar |
|
13 |
7 |
34 |
20 |
16 |
23 |
8 |
3 |
54 |
30 |
20 |
30 |
17 |
15 |
83 |
It is not possible to predict with any certainty the number of Gardaí who will leave the Force for different reasons, during the course of the year.
Garda Training.
Michael Ring
Question:193 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the number of garda trainees expected to enter the Garda College to commence their training programme for each of the next six months; and if he will compare these figures to the corresponding numbers for 2008 in tabular form. [19208/09]
The information requested by the Deputy was contained in Parliamentary Question 213 of 30 April 2009. 100 recruits commenced their training in January of this year and another 100 commenced their training in May of this year, after which the moratorium on recruitment in the public service applies. The corresponding figures for 2008 were 270 and 286 respectively.
Garda Recruitment.
Michael Ring
Question:194 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the number of persons who were recruited and trained into the Garda Reserve during 2008; and the Garda divisions to which they were allocated in tabular form. [19209/09]
I refer the Deputy to Question 220 of 11th February 2009 in which I provided the information requested.
Michael Ring
Question:195 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the number of persons who were recruited into the Garda Reserve force during 2009 and their present status. [19210/09]
A total of 88 Garda Reserve Trainees have been recruited to date during 2009.
These Garda Reserve Trainees are currently undergoing the prescribed training as set out in Regulation 6(1) of the Garda Síochána (Reserve Members) Regulations, 2006.
Garda Operations.
Michael Ring
Question:196 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the number of hours worked by members of the Garda Reserve force during 2008 per Garda division; and if he will compare those duty hours with the duty hours for the first four months of 2009 in tabular form. [19211/09]
The information requested in relation to the number of hours duty logged by members of the Garda Reserve during 2008 is not readily available and could only be obtained by a disproportionate expenditure of resources relative to the information sought.
Regulation 11(4) of the Garda Síochána (Reserve Members) Regulations 2006 states that ‘A reserve member may not be required to serve more than 208 hours of duty in any 12 month period'.
Garda Strength.
Michael Ring
Question:197 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform the number of inspectors, superintendents and chief superintendents who have retired from the Garda Síochána for each of the past four months in tabular form. [19212/09]
I am informed by the Garda Commissioner that the number of Gardaí who have retired, in each of the ranks referred to by the Deputy, from 01 January-31 March 2009 was as set out in the attached table. I should point out that the numbers for April are not yet available.
|
Month |
C/Supt |
Supt |
Insp |
|
January |
1 |
— |
— |
|
February |
— |
1 |
— |
|
March |
1 |
2 |
3 |
Garda Stations.
Michael Ring
Question:198 Deputy Michael Ring asked the Minister for Justice, Equality and Law Reform his plans to ensure that the current complement of Garda stations in County Mayo retain their present or expanded status. [19213/09]
I refer the Deputy to my reply to Parliamentary Question No. 262 (16138/09) of the 28th April which sets out the position in relation to rural Garda stations.
Garda Recruitment.
James McDaid
Question:199 Deputy James McDaid asked the Minister for Justice, Equality and Law reform the Garda intake numbers for 2009; if there is an embargo on intake; and the time frame from passing the exams and assessment before being called to training. [19215/09]
I am informed by the Garda Commissioner that 100 recruits commenced their training in January of this year and another 100 commenced their training in May, after which the moratorium on recruitment in the public service applies. I have also been informed by the Garda Commissioner that under normal circumstances it is not possible to give a definitive timeframe when an applicant will be called to training on successful completion of their exams and assessment.
Garda Operations.
Finian McGrath
Question:200 Deputy Finian McGrath asked the Minister for Justice, Equality and Law Reform if he will support a matter (details supplied). [19261/09]
I am informed by the Garda authorities that the location referred to is in the Clontarf Garda Sub-District. Local Garda management is aware of anti-social behaviour in the area. While at present no complaints in respect of the location are the subject of Garda investigation, any such complaints received will be investigated. The area is subject, under the direction of local Garda management, to regular patrols by uniform and plain clothes personnel, including the Community Policing and the Garda Mountain Bike Units and the District Detective and Drugs Units, supplemented as required by the Crime Task Force and Traffic Corps personnel.
Current policing policy in the area is predicated on the prevention of crime, including crimes of violence against persons and property, the prevention of public order offences and the maintenance of an environment conducive to the improvement of the quality of life of the residents. This strategy is, and will continue to be, central to the delivery of the policing service in this area.
Citizenship Applications.
Bernard J. Durkan
Question:201 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the extent to which the application for naturalisation has been progressed in the case of persons (details supplied) in Dublin 24; and if he will make a statement on the matter. [19291/09]
I am pleased to inform the Deputy that I have approved the application for a certificate of naturalisation of the first named person. A letter informing him of this issued, via his solicitor, on 7 April 2009. A certificate of naturalisation will issue on receipt of the documentation requested. With regards to the second individual mentioned, I refer the Deputy to my reply to Parliamentary Question 348 on 18 November 2008.
Bernard J. Durkan
Question:202 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the current or previous criteria applicable to EU nationals seeking Irish citizenship; and if he will make a statement on the matter. [19292/09]
The Irish Nationality and Citizenship Act, 1956, as amended, provides that the Minister may, in his absolute discretion, grant an application for a certificate of naturalisation provided certain statutory conditions are fulfilled. The same criteria applies to all applicants. The conditions are that the applicant must:
be of full age;
be of good character;
have had a period of one year's continuous residency in the State immediately before the date of application and, during the eight years immediately preceding that period, have had a total residence in the State amounting to four years;
intend in good faith to continue to reside in the State after naturalisation;
have made, either before a Judge of the District Court in open court or in such a manner as the Minister for special reasons allows, a declaration in the prescribed manner, of fidelity to the nation and loyalty to the State.
In the context of naturalisation, certain periods of residence in the State are excluded. These include:
periods of residence in respect of which an applicant does not have permission to remain in the State;
periods granted for the purposes of study;
periods granted for the purposes of seeking recognition as a refugee within the meaning of the Refugee Act, 1996.
Residency Permits.
Bernard J. Durkan
Question:203 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in regard to residency in the case of a person (details supplied) in Dublin 24; and if he will make a statement on the matter. [19293/09]
I refer the Deputy to my detailed Reply to his recent Parliamentary Question, No. 177 of Thursday, 12 March 2009, in this matter. The position in the State of the person concerned is as set out in that Reply.
Bernard J. Durkan
Question:204 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the procedure to be followed in the case of a person (details supplied) in Dublin 6; and if he will make a statement on the matter. [19294/09]
The person concerned has been granted Leave to Remain temporarily in the State for a three year period, to 23 October 2011. This decision was conveyed to the person concerned by letter dated 23 October 2008. This communication advised the person concerned of the conditions attaching to this permission and outlined the registration process involved which was, to attend at the Offices of the Garda National Immigration Bureau (GNIB), 13-14 Burgh Quay, Dublin 2 where, upon presentation of appropriate identification documentation and payment of the relevant registration fee, this registration process could be completed. It is not clear from the Deputy's Question as to what specific procedure he is referring to as my Department has not sought any documentation from the person concerned in relation to his position in the State.
Asylum Applications.
Bernard J. Durkan
Question:205 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position in relation to the application for residency or leave to remain here in the case of a person (details supplied) in County Roscommon; and if he will make a statement on the matter. [19295/09]
The person concerned applied for asylum on 7 July 2004. 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 31 August 2005, 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 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.
Residency Permits.
Bernard J. Durkan
Question:206 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the position regarding the application for residency in the case of a person (details supplied) in Dublin 6; and if he will make a statement on the matter. [19296/09]
The person concerned has been granted Leave to Remain temporarily in the State for a three year period, to 1 July 2011. This decision was conveyed to the person concerned by letter dated 1 July 2008.
Bernard J. Durkan
Question:207 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform the current or expected residency status in the case of a person (details supplied) in Dublin 7; and if he will make a statement on the matter. [19297/09]
There is currently no application pending in my Department for residency in the case of the person whose details were supplied. 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.
Asylum Applications.
Bernard J. Durkan
Question:208 Deputy Bernard J. Durkan asked the Minister for Justice, Equality and Law Reform further to Parliamentary Question No. 304 of 28 April 2009, the full information sought in the question having particular regard to the circumstances of the case; and if he will make a statement on the matter. [19390/09]
The person referred to by the Deputy applied for Asylum on 13/02/2008. 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 4/03/08. 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 30/04/09. In accordance with normal procedures, the applicant's file has been forwarded to the Irish Naturalisation and Immigration Service 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).
National Disability Strategy.
David Stanton
Question:209 Deputy David Stanton asked the Minister for Justice, Equality and Law Reform the funding and expenditure allocated to all four elements of the national disability strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if he will make a statement on the matter. [19417/09]
The element of the National Disability Strategy for which my Department receives funding is the Multi-Annual Investment Programme. My Department's allocations and expenditures have been as follows: In 2005 €3m was allocated but due to the extended development stage of this innovative programme, expenditure did not occur until 2006. The following table details 2006-2008 allocations and expenditure under this Programme:
|
Year |
Allocation |
Expenditure |
|
2006 |
3,003,000 |
2,696,000 |
|
2007 |
3,000,000 |
4,582,000 |
|
2008 |
3,000,000 |
2,656,000 |
The allocation for 2009 is €2.662m. Allocations for 2010 will be made in the 2010 Estimates.
Security of the Elderly.
Michael D'Arcy
Question:210 Deputy Michael D’Arcy asked the Minister for Community, Rural and Gaeltacht Affairs his plans to make provision for funding for elderly people who want to avail of the services provided by emergency response following the cuts in funding to the sector in the 7 April 2009 Budget; and if he will make a statement on the matter. [19183/09]
I refer the Deputy to my response to Questions 68 and 69 on 29 April 2009. As indicated in that reply, the Scheme of Community Support for Older People was suspended on 7th April in order to afford my Department the opportunity to review its operation. I met with representatives of organisations involved with issues affecting older people and I have agreed with them a process that will set the broad parameters for the review and for the necessary consultation to be undertaken as part of it. I am hopeful that the review process can begin in May and be completed by mid September. As indicated in the earlier reply, it is my intention to re-launch the scheme later in the year, once the review is completed.
All applications received up to the suspension of the Scheme will be processed and approved, as appropriate, in line with the current eligibility criteria. In addition, it is important to note that the suspension of the Scheme in no way affects those who already have received a monitored alarm device.
Departmental Agencies.
Michael Ring
Question:211 Deputy Michael Ring asked the Minister for Community, Rural and Gaeltacht Affairs the companies currently assisted by Údarás na Gaeltachta; the number of staff employed by each company; the amount of funding allocated to each company by Údarás na Gaeltachta; and if he will make a statement on the matter. [19199/09]
As the Deputy will be aware, the Annual Reports and Accounts of Údarás na Gaeltachta are laid before the Houses of the Oireachtas annually. Table 1 of such Reports provides a breakdown by county of full-time employment in assisted companies. Table 2A provides a breakdown of funding and the projected extra employment as a result of that funding. An tÚdarás does not publish statistics in relation to the number of staff within particular companies assisted by it. I hope that this information is of assistance to the Deputy. If, however, he requires further details in relation to any particular aspect, I will be glad to raise the matter further with Údarás na Gaeltachta.
Michael Ring
Question:212 Deputy Michael Ring asked the Minister for Community, Rural and Gaeltacht Affairs the staffing composition of each of the companies assisted by Údarás na Gaeltachta; the number of staff within assisted companies funded by or participating in FÁS or other schemes funded by Departments, including and apart from his Department; and if he will make a statement on the matter. [19200/09]
As the Deputy will be aware, the Annual Reports and Accounts of Údarás na Gaeltachta are laid before the Houses of the Oireachtas annually. Table 1 of such Reports provides a breakdown by county of full-time employment in assisted companies. I am advised that an tÚdarás does not compile statistics in relation to the number of staff within companies assisted by it who are either funded by, or participating in, programmes administered by other State bodies.
Grant Payments.
Paul Connaughton
Question:213 Deputy Paul Connaughton asked the Minister for Community, Rural and Gaeltacht Affairs the position of an application by a service (details supplied) in County Galway for grant aid for an extension to their premises at Portumna, Co Galway; if his attention has been drawn to the need for such an extension in view of the increase in demand for services for the elderly at this day care centre; and if he will make a statement on the matter. [19236/09]
An application for funding under the programme of grant support for locally based community and voluntary organisations has been received from the group referred to by the Deputy. This particular programme was suspended at the end of February and it has not been possible to approve funding for the project. All projects have been contacted to inform them of this position.
Social Welfare Benefits.
Bernard J. Durkan
Question:214 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when farm assist payment will issue to persons (details supplied) in County Kildare who applied for same in February 2009; and if she will make a statement on the matter. [19272/09]
The couple involved applied for Farm Assist on 18 February 2009. The application is currently with a Social Welfare Inspector for investigation and she will be notified of the outcome as soon as possible.
Bernard J. Durkan
Question:215 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when rent support will be offered to a person (details supplied) in County Kildare; and if she will make a statement on the matter. [19536/09]
Bernard J. Durkan
Question:218 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs if rent support will be increased in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [19276/09]
I propose to take Questions Nos. 215 and 218 together.
Rent supplement is administered on behalf of the department by the community welfare division of the Health Service Executive (HSE) as part of the supplementary welfare allowance scheme. The Executive has advised that the person concerned is in receipt of rent supplement of €435.38 per month based on household income from jobseeker's benefit, maintenance payments and part-time employment. She recently advised the community welfare officer of a change in her circumstances and her entitlement to rent supplement was reviewed accordingly. She will be notified shortly of the revised rate of payment.
Dinny McGinley
Question:216 Deputy Dinny McGinley asked the Minister for Social and Family Affairs the position regarding an application for carers allowance by a person (details supplied) in County Donegal. [19138/09]
I refer the Deputy to my reply to Deputy Kathleen Lynch on 28 April 2009 to PQ No. 16627/09 with regard to this case.
Social Welfare Appeals.
Dinny McGinley
Question:217 Deputy Dinny McGinley asked the Minister for Social and Family Affairs the position regarding the appeal of disability allowance for a person (details supplied) in County Donegal. [19178/09]
The claim for disability allowance, by the person concerned, was disallowed by a Deciding Officer of the Department on 02 December 2008 following an examination by a Medical Assessor who expressed the opinion that she was medically unsuitable for the allowance. She appealed this decision on 17 December 2008 and she was examined by a second Medical Assessor on 03 February 2009 who also expressed the opinion that she was medically unsuitable for disability allowance.
I am advised by the Social Welfare Appeals Office that, in accordance with the statutory requirements, the Department was asked for the documentation in the case and the Deciding Officer's comments on the grounds of the appeal. These have been received and the case has been referred to an Appeals Officer who proposes to hold an oral appeal hearing, a date for which has not yet been scheduled. The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on Social Welfare entitlements.
Question No. 218 answered with Question No. 215.
Social Welfare Benefits.
Bernard J. Durkan
Question:219 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when child benefit will be awarded to a person (details supplied) in County Meath; the position on the social welfare appeal; and if she will make a statement on the matter. [19277/09]
A child benefit claim was received from the person concerned in June 2008 in respect of his children residing in the Czech Republic.
Child benefit was awarded from the 1st July 2008, the month after the claim was received. His claim was disallowed for the period prior to this date because of the fact that his claim was not received within 6 months of commencing employment in Ireland. Article 193 of SI 142 of Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 applies.
An appeal was received in November 2008 and a submission on behalf of the Department has been sent to the Appeals Office for their consideration. The Appeals Office will notify the person concerned directly of the decision on the appeal.
Social Welfare Appeals.
Bernard J. Durkan
Question:220 Deputy Bernard J. Durkan asked the Minister for Social and Family Affairs when an appeal will be heard in the case of the habitual residence clause used to refuse unemployment assistance or benefit in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [19278/09]
The claim for jobseeker's allowance, by the person concerned, was refused by a Deciding Officer on the 03 February 2009 on the grounds that she did not satisfy the habitual residence conditions.
An appeal was opened on 3 March 2009 and I am advised by the Social Welfare Appeals Office that, in accordance with the statutory requirements, the Department was asked for the documentation in the case and the Deciding Officer's comments on the grounds of the appeal. These are now to hand and have been referred to an Appeals Officer for consideration.
The Social Welfare Appeals Office is an office of the Department that is independently responsible for determining appeals against decisions on social welfare entitlements.
Departmental Properties.
Michael Ring
Question:221 Deputy Michael Ring asked the Minister for Defence the cost of running a building (details supplied) in County Mayo. [19172/09]
The property in question is owned by my Department and is used by the Reserve Defence Forces (RDF) on a part-time basis, for training purposes.
Military personnel from Castlebar Military Barracks look after the caretaking and general maintenance of the property. The cost of running the building in 2008, including electricity, heating, phone and water charges was €2154.35.
Defence Force Representative Associations.
Brian O'Shea
Question:222 Deputy Brian O’Shea asked the Minister for Defence the action he proposes to take on foot of the position paper submitted to his Department by PDFORRA outlining their case for affiliation to ICTU (details supplied); and if he will make a statement on the matter. [19269/09]
The position is that under the terms of the Defence (Amendment) Act, 1990 the Defence Force Representative Associations are prohibited from being associated with or affiliated to any trade unions or any other body without the consent of the Minister. Accordingly, the Representative Associations, RACO and PDFORRA cannot be affiliated to ICTU at present. A similar arrangement applies to the Garda Síochána Representative Associations.
The basis for the prohibition is that it would be inappropriate to apply the provision of the Industrial Relations Act 1990 to members of the Defence Forces. The taking of any form of industrial action is felt to be irreconcilable with military service. As has been done in the past, the Defence Forces may be called on to contribute to maintaining vital services in times of industrial action. The potential for serious difficulties could arise in these circumstances if the Associations were affiliated to ICTU.
A number of mechanisms have been put in place through the Defence Forces Conciliation and Arbitration Scheme to compensate for the prohibition on affiliation to ICTU. These provide the Representative Associations with structures and processes, which enable them to make representations and negotiate on behalf of their members. In addition a framework exists which facilitates the Associations engaging with the official side in talks parallel to those taking place between the Social Partners at National level. This parallel process was operated in respect of the discussions at National level on the Framework for a Pact for Stabilisation, Social Solidarity and Economic Renewal over the recent past.
Local Authority Housing.
Caoimhghín Ó Caoláin
Question:223 Deputy Caoimhghín Ó Caoláin asked the Minister for the Environment, Heritage and Local Government further to Parliamentary Question No. 53 of 8 April 2009, if a decision has been made to pass on in full the European Central Bank interest rate cut of 0.25%, announced on 2 April 2009, to local authority mortgage holders; when a decision will be reached on the 0.25% cut announced on 7 May 2009; and if he will make a statement on the matter. [19164/09]
I refer to the reply to Question No. 53 of 8 April 2009. In general, following consideration by the Board of the Housing Finance Agency (HFA) the rates charged to local authority borrowers are normally adjusted by the Board, in line with movements in European Central Bank (ECB) rates. However, given that the correlation between ECB rates and interbank rates (i.e. the rates at which the Agency itself borrows) is atypical and volatile at present, the Agency, in responding to movements in ECB rates, must give careful consideration, on each occasion, to the fluctuating relationship between its lending rates and the cost of funds.
As with previous rate reductions, it will be necessary closely to monitor the impact of the cut on interbank rates before a decision can be made in respect of the most recent ECB decision. I anticipate that, in common with the situation following the previous cuts which were passed on in full to local authority borrowers, the position in relation to possible movement in the HFA's lending rates should be clear within a number of weeks.
The HFA notified local authorities last month of its decision to pass on, in full, the 0.25% decrease announced by the ECB on 2 April. The effective rate for local authority borrowers from 1 June 2009 is 2.25% — a cumulative rate decrease since October 2008 of 3%.
Register of Electors.
Caoimhghín Ó Caoláin
Question:224 Deputy Caoimhghín Ó Caoláin asked the Minister for the Environment, Heritage and Local Government if his attention has been drawn to concerns that immigrant voters may be deterred from registering by the requirement that they visit their local Garda station; the reason for this requirement; if he has explored alternatives, such as that in the Six Counties where all registration is done through the electoral office with no police involvement; and if he will make a statement on the matter. [19195/09]
In law, the preparation of the Register of Electors is a matter for each local registration authority. It is their duty to ensure, as far as possible and with the cooperation of the public, the accuracy and comprehensiveness of the Register.
Authorities were required to publish the Final Register for 2009/10 by 1 February 2009 and this is now available for checking. Applications for entry in the Final Register which were made in the course of its compilation did not require attendance at a Garda station.
Individuals not on the Register can avail of the supplement to the Register up until 15 days before the next polling day (i.e. applications must be with the authority not later than Monday 18 May in the case of the Local and European elections and Dáil Bye-Elections being held on 5 June 2009). Electoral law provides that each application for entry to the supplement to the Register must be signed in the applicant's local Garda station in the presence of a member of the Garda Síochána, who must first be satisfied as to the person's identity before signing, dating and stamping the form. The Garda may request photographic identification. Where the applicant is unable to go to the local Garda station, and sets out the reason in writing, the form can be signed in the presence of an official of their registration authority. Again, photographic identification may be required.
If neither option is viable due to physical illness or physical disability, the application form must be accompanied by a medical certificate.
I consider that the current arrangements strike a reasonable balance between having a flexible supplement facility and, at the same time, ensuring that there are adequate measures in place to counteract any possible abuse.
EU Directives.
Simon Coveney
Question:225 Deputy Simon Coveney asked the Minister for the Environment, Heritage and Local Government the number of ongoing Article 228 EC legal proceedings against the Government in the environmental sector, and the Article 226 EC judgments of the European Court of Justice to which this Article 228 EC proceedings relate; and if, in respect of each case, he will confirm the stage Article 228 EC proceedings are at. [19196/09]
The European Commission is currently in correspondence with my Department in respect of 7 cases in which Article 228 legal proceedings have commenced. The Commission is also in correspondence with my Department in respect of 3 cases in which Article 226 judgements are to be implemented while judgement is awaited in respect of two further cases. The following table sets out the stage of proceedings in respect of each case.
Ireland has never been fined by the EU for an environmental infringement and my Department is making every effort to resolve outstanding issues before the question of a fines application might arise in any particular case.
|
European Court of Justice Reference |
Directive number and general reference for the main directive in each case |
Current stage in proceedings |
|
C-282/02 |
76/464/EEC on dangerous substances in water |
Article 228 Reasoned Opinion |
|
C-316/00 |
80/778/EEC on the quality of drinking water for human consumption |
Article 228 Reasoned Opinion |
|
C-418/04 |
79/409/EEC on wild birds |
Article 228 Letter of Formal Notice |
|
C-248/05 |
80/68/EEC on groundwater |
Article 228 Letter of Formal Notice |
|
C-494/01 |
75/442/EEC the waste directive |
Article 228 Letter of Formal Notice |
|
C-183/05 |
92/43/EEC on habitats |
Article 228 Letter of Formal Notice |
|
C-148/05 |
79/923/EEC on the quality required of shellfish waters |
Article 228 Letter of Formal Notice |
|
C-66/06C-215/06 |
85/337/EEC on the assessment of the effects of certain public and private projects on the environment |
European Court of Justice decisions to be implemented |
|
C-316/06 |
91/271/EEC on urban waste water treatment |
European Court of Justice decision to be implemented |
|
C-427/07 |
2003/35/EC on public participation in certain plans and programmes relating to the environment |
Awaiting decision of the European Court of Justice |
|
C-188/08 |
75/442/EEC the waste directive |
Awaiting decision of the European Court of Justice |
Fire Stations.
Thomas P. Broughan
Question:226 Deputy Thomas P. Broughan asked the Minister for the Environment, Heritage and Local Government if he will provide funding for one additional emergency tender, one additional turntable ladder and three additional standard Class B water tenders for the Dublin fire brigade; and if he will make a statement on the matter. [19202/09]
The provision of a fire service, including equipment, is a statutory function of the individual fire authorities. The Department supports the authorities through the setting of general policy and the provision of capital funding including the recoupment (within the overall funding available) of costs incurred by the authorities in relation to the purchase of fire appliances.
Proposals are currently under consideration for inclusion in the 2009 capital programme (€20 million) having regard to each fire authority's priorities, the existing facilities available, the level of activity and the totality of demands from fire authorities in relation to the resources available. There is no application in my Department from Dublin City Council for funding for the fire appliances referred to in the question. I understand, however, that the fire authority will shortly be taking delivery of a hydraulic platform and has recently taken delivery of two fire appliances.
Local Government Elections.
Michael Ring
Question:227 Deputy Michael Ring asked the Minister for the Environment, Heritage and Local Government the estimated cost to his Department of local elections 2009. [19228/09]
Article 8 of the Local Elections Regulations 1995 provides that the cost of local elections is met by each local authority. The information requested is not available in my Department.
Election Management System.
Michael Ring
Question:228 Deputy Michael Ring asked the Minister for the Environment, Heritage and Local Government the cost that may be accruing in the storage of the electronic voting machines regarding each storage facility that was used; and the strategy in the case of each short or long-term lease that may have been entered into. [19263/09]
I indicated on a number of occasions that I was considering the position in relation to the electronic voting and counting project. On 23 April 2009, I announced that the Government have decided not to proceed with the implementation of electronic voting in Ireland. A process will now be put in place, including discussions with the supplier, to address the disposal of the electronic voting and counting equipment and termination of storage arrangements.
My Department engaged consultants with valuation expertise in May 2007, following a competitive tendering process, to examine individual lease arrangements and to make recommendations as to termination of the leases where appropriate. In May 2008, I accepted the recommendations made by the consultants and these recommendations are in the process of being implemented. It is expected that, in certain instances, the termination of lease arrangements will give rise to buy-out costs and these will be dependent upon the outcome of negotiations. Work on the termination of local lease arrangements will now continue in the context of the decision taken to conclude the electronic voting and counting project.
Based on information provided to my Department by Returning Officers, the total annual costs for storage of the electronic voting equipment for the various locations are set out in the following table.
In 2007, over 60% of the machines (4,762 in total) were moved from 12 local storage locations to a central storage facility located at Gormanston Army Camp. Costs incurred to date in respect of the movement and storage of this equipment are some €328,000. These were largely one-off expenses, and there are no ongoing rental costs.
|
County/City |
Annual Storage Costs (incl. VAT) |
Annual Storage Costs (incl. VAT) |
Annual Storage Costs (incl. VAT) |
Annual Storage Costs (incl. VAT) |
Annual Storage Costs (incl. VAT) |
|
2004 |
2005 |
2006 |
2007 |
2008 |
|
|
€ |
€ |
€ |
€ |
€ |
|
|
Carlow-Kilkenny* |
28,506.00 |
29,595.00 |
30,166.00 |
24,653.65 |
— |
|
Cavan-Monaghan |
25,828.00 |
25,828.00 |
27,075.32 |
21,608.32 |
21,685.79 |
|
Clare |
10,800.00 |
3,600.00 |
3,600.00 |
3,600.00 |
3,600.00 |
|
Cork City* |
27,207.50 |
42,499.50 |
53,942.33 |
48,561.85 |
— |
|
Cork County* |
37,609.30 |
37,609.30 |
35,124.00 |
35,913.29 |
— |
|
Donegal |
9,293.00 |
15,714.00 |
16,685.80 |
13,987.80 |
14,026.20 |
|
Dublin City* |
65,000.00 |
72,350.00 |
71,265.00 |
6,954.00 |
— |
|
Dublin County* |
62,938.66 |
62,938.66 |
49,034.86 |
Nil |
— |
|
Galway |
5,253.00 |
5,253.00 |
Nil |
5,000.00 |
Nil |
|
Kerry |
26,125.00 |
26,125.00 |
22,624.96 |
28,003.00 |
31,875.32 |
|
Kildare* |
27,125.86 |
27,125.86 |
31,984.21 |
29,364.82 |
20,748.97 |
|
Laois-Offaly |
28,178.00 |
28,178.00 |
27,647.60 |
27,647.60 |
27,682.60 |
|
Limerick* |
57,675.86 |
57,675.86 |
64,465.30 |
28,423.10 |
— |
|
Longford |
2,995.16 |
15,095.16 |
18,439.88 |
20,003.28 |
16,859.98 |
|
Roscommon |
10,374.98 |
10,374.98 |
9,816.00 |
10,664.82 |
10,026.82 |
|
Louth |
298.00 |
298.00 |
593.47 |
595.06 |
566.11 |
|
Mayo* |
34,930.00 |
34,930.00 |
37,426.00 |
38,608.00 |
— |
|
Meath |
20,366.00 |
20,366.00 |
21,976.51 |
26,354.72 |
26,395.72 |
|
Sligo |
Nil |
Nil |
Nil |
Nil |
2,500 |
|
Leitrim |
Nil |
3,000.00 |
3,150.00 |
3,200.00 |
3,200 |
|
Tipperary (N&S)* |
42,700.00 |
42,700.00 |
31,200.00 |
39,196.00 |
— |
|
Waterford* |
52,888.48 |
52,888.48 |
57,699.17 |
35,989.67 |
— |
|
Westmeath* |
22,805.34 |
22,805.34 |
21,772.62 |
21,440.30 |
— |
|
Wexford |
16,875.00 |
16,876.00 |
19,064.76 |
18,934.46 |
25,057.70 |
|
Wicklow* |
42,455.80 |
42,455.80 |
54,241.29 |
Nil |
— |
|
Total |
658,228.94 |
696,281.94 |
705,995.08 |
488,703.74 |
204,225.21 |
*Machines moved to Gormanston in 2007.
Local Authority Housing.
Seán Barrett
Question:229 Deputy Seán Barrett asked the Minister for the Environment, Heritage and Local Government if, in view of the fact that social housing is at a premium in the administrative area of Dún Laoghaire Rathdown County Council, he will make available the funding sought by a housing charity (details supplied) in County Dublin to complete for the county council, a full refurbishment of six social housing units, which would thus be provided at reasonable cost to the State; and if he will make a statement on the matter. [19267/09]
There is no funding application in respect of this project with my Department at present.
National Disability Strategy.
David Stanton
Question:230 Deputy David Stanton asked the Minister for the Environment, Heritage and Local Government the funding and expenditure allocated to all four elements of the national disability strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if he will make a statement on the matter. [19421/09]
The information requested is being compiled and will be forwarded to the Deputy as soon as possible.
Departmental Schemes.
Joe McHugh
Question:231 Deputy Joe McHugh asked the Minister for Communications, Energy and Natural Resources the reason fishermen on Lough Foyle have not received salmon hardship fund payments, even though these were due at the beginning of April 2009; if he will move immediately to ensure that these payments are made; and if he will make a statement on the matter. [19392/09]
I have been advised by the Loughs Agency who are the administrators of the hardship scheme referred to by the Deputy that the 2009 payments under the Fund were to issue no earlier than April 2009. I understand that these payments will issue in compliance with State Aid Notification rules at the earliest possible opportunity.
National Disability Strategy.
David Stanton
Question:232 Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources the funding and expenditure allocated to all four elements of the national disability strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if he will make a statement on the matter. [19419/09]
The advancement of the National Disability Strategy to serve the needs of persons with disabilities are mainstreamed within the Department's remit, as an integral part of policy, legislative and operational matters and as such, it is not possible to disaggregate expenditure on elements of these activities which relate to disability.
Aquaculture Licences.
Ruairí Quinn
Question:233 Deputy Ruairí Quinn asked the Minister for Agriculture, Fisheries and Food if he will confirm that a salmon aquaculture licence for Ballynakill Bay, Connemara, County Galway has been assigned to a company on behalf of its subsidiary (details supplied) since 2003; if he will further confirm that the same company or subsidiary has farmed salmon at Freaghillaun Island, County Galway and that it also possesses a valid licence to do so; if he will supply copies of the aforementioned licences; and if he will make a statement on the matter. [19157/09]
Ruairí Quinn
Question:234 Deputy Ruairí Quinn asked the Minister for Agriculture, Fisheries and Food the annual aquaculture and foreshore licence fees (details supplied) due for both Ballynakill Bay, Connemara, County Galway and Freaghillaun Island, County Galway; if his Department has received licence payments for the site at Freaghillaun Island since 1987; and if he will make a statement on the matter. [19158/09]
I propose to take Question No. 233 and 234 together.
Tully Mountain Salmon Farm Ltd hold an aquaculture licence for salmon farming in respect of the site for which details have been supplied by the Deputy. There is no record of this licence having been assigned. I will arrange for a copy of this licence to be sent to the Deputy. There is no licence in existence for the site at Freaghillaun Island. My Department is pursuing this matter.
Ruairí Quinn
Question:235 Deputy Ruairí Quinn asked the Minister for Agriculture, Fisheries and Food the amounts which should be paid by salmon aquaculture companies (details supplied), on an annual basis, in order to receive each of their aquaculture and foreshore licences; the amount each of these companies are in arrears by with respect to their licence fees; and if he will make a statement on the matter. [19163/09]
Because of the commercially sensitive nature of the information sought by the Deputy, details requested will be issued by the Minister in a written reply.
Animal Feedstuffs.
Andrew Doyle
Question:236 Deputy Andrew Doyle asked the Minister for Agriculture, Fisheries and Food if waste food products from supermarkets are permitted to be recycled into animal feed; and if he will make a statement on the matter. [19167/09]
Waste food products from supermarkets are not allowed for animal feed, other than wrapped bread that is returned to bakeries, which may be used for animal feed.
At present the Department of Environment, Heritage and Local Government is drafting legislation on the management of food waste. Officials in my Department are in contact with that Department regarding the regulation of food waste in animal feed.
Foreshore Licences.
Andrew Doyle
Question:237 Deputy Andrew Doyle asked the Minister for Agriculture, Fisheries and Food the names of the external consultees considering the application for the offshore wind farm on the Codling Bank; if the impact of the wind farm on the visual amenity of the coastline will be taken into consideration; his intended action to prevent financial speculation on offshore wind farm leases; and if he will make a statement on the matter. [19168/09]
In 2005 a lease was granted to Codling Windpark Ltd for a 220 turbine windfarm on the Codling Bank. In March 2009 a further Foreshore lease application was made by Codling Windpark Ltd for a 200 turbine windfarm on the Codling banks adjacent to the existing leased area. My Department is currently preparing the public consultation process for this application. The consultees set out as follows will be consulted directly. In addition further consultees will be identified on the basis of the impact of the proposed project on the local region.
The decision to grant a lease under Section 2 of the Foreshore Acts 1933-2005 will take all aspects of the application into consideration including the visual impact of the proposed development. Should a foreshore lease be granted on foot of this application, the lease presented will include specific anti-speculation clauses whereby the consent of the Minister is required to either assign the lease to a third party or to allow for a change in control of the company granted the lease.
CONSULTEES
Department of the Environment, Heritage and Local Government;
The Heritage Council;
The National Parks and Wildlife Service;
Department of Communications, Energy and Natural Resources;
Health and Safety Authority;
BirdWatch Ireland;
Geological Survey of Ireland Office;
Environmental Protection Agency (EPA);
An Taisce;
Met Eireann;
Office of Public Works;
Bord Fáilte Ireland;
Department of Defence;
Arklow Harbour Master;
Dún Laoghaire Harbour Master;
Central Fisheries Board;
The Marine Institute;
Eastern Regional Fisheries Board;
Bord Iascaigh Mhara;
Irish Aviation Authority;
Eastern Region Engineering Division;
Commissioners of Irish Lights;
Irish Coast Guard;
South Dublin County Council;
Dún Laoghaire-Rathdown County Council
Wicklow County Council;
Sea Fisheries Protection Authority;
An Bord Pleanála;
Coastal Concern Alliance.
Grant Payments.
Seymour Crawford
Question:238 Deputy Seymour Crawford asked the Minister for Agriculture, Fisheries and Food when a person (details supplied) in County Monaghan will be awarded their farm waste management grant; and if he will make a statement on the matter. [19175/09]
The arrangements for payment of grants under the Farm Waste Management Scheme on a phased basis have been confirmed with 40 per cent being paid this year as claims are approved. A further 40 per cent will be paid in early January 2010 and the remaining 20 per cent in January 2011. I have also announced that a special ex-gratia payment not exceeding 3.5 per cent of the value of the deferred amount will be made to farmers whose Farm Waste Management grants have been partially deferred. This payment will be made in January 2011 along with the final instalment. My Department is currently processing the application concerned and a decision will be made as soon as possible.
Seymour Crawford
Question:239 Deputy Seymour Crawford asked the Minister for Agriculture, Fisheries and Food when a person (details supplied) in County Monaghan will be awarded their farm waste management grant; and if he will make a statement on the matter. [19176/09]
The arrangements for payment of grants under the Farm Waste Management Scheme on a phased basis have been confirmed with 40 per cent being paid this year as claims are approved. A further 40 per cent will be paid in early January 2010 and the remaining 20 per cent in January 2011. I have also announced that a special ex-gratia payment not exceeding 3.5 per cent of the value of the deferred amount will be made to farmers whose Farm Waste Management grants have been partially deferred. This payment will be made in January 2011 along with the final instalment. My Department is currently processing the application concerned and a decision will be made as soon as possible.
Harbour Authorities.
Brian O'Shea
Question:240 Deputy Brian O’Shea asked the Minister for Agriculture, Fisheries and Food the reason the owners of smaller fishing vessels are being denied access to the syncrolift at Dunmore East Fishery Harbour, County Waterford; and if he will make a statement on the matter. [19177/09]
The Harbour Master at Dunmore East Fishery Harbour Centre has confirmed that the syncrolift is available to the owners of smaller fishing vessels. All requests to use the syncrolift should be directed to his office so that the appropriate arrangements can be put in place.
Grant Payments.
Bobby Aylward
Question:241 Deputy Bobby Aylward asked the Minister for Agriculture, Fisheries and Food if he will process an application submitted to his Department under the farm retirement scheme in respect of a person (details supplied) in County Kilkenny in view of the fact that proof of postage is available that the documents were posted prior to the suspension of this scheme. [19185/09]
My Department received an application under the Early Retirement Scheme from the person named on 15 October 2008. It could not be accepted for processing as it was received after the Scheme had been suspended for new applications due to budgetary constraints. I indicated at the time that I would monitor all schemes and services throughout 2009 and would review the position thoroughly in the context of the preparations of the 2010 Estimates for my Department.
Training Programmes.
Seán Connick
Question:242 Deputy Seán Connick asked the Minister for Agriculture, Fisheries and Food the amount of money that has been allocated under the decommissioning scheme to retrain fishermen who have lost their jobs as a result of the decommissioning of fishing vessels; the structures that have been put in place to deliver this retraining; the person former fishermen in County Wexford should contact to apply for this retraining; and if he will make a statement on the matter. [19191/09]
All fishing vessel crew members are eligible to apply for BIM's training programmes, including those serving on vessels that have been decommissioned. Some fishermen from decommissioned vessels are presently upgrading their qualifications with BIM and there are also opportunities to retrain for the aquaculture sector, for which many of the skills learned in the fishing industry are very relevant. FÁS provides training those fishing vessel crew members who wish to leave the fishing industry for a new career opportunity.
Grant Payments.
Paul Connaughton
Question:243 Deputy Paul Connaughton asked the Minister for Agriculture, Fisheries and Food the reason entitlements sold by a person (details supplied) in County Galway have not been cleared by his Department; and if he will make a statement on the matter. [19232/09]
The person named established 53.75 standard entitlements during the reference period. These were subsequently consolidated down to 38.89 National Reserve entitlements. Small numbers of these entitlements have reverted to the National Reserve due to lack of use so that at the start of the 2009 Scheme year the person named holds a total of 36.9 National Reserve entitlements. The person named has been paid in full for each scheme year to date for those entitlements for which land was declared. No Transfer of Entitlements application has been received from the person named for any scheme year.
The person named may apply to transfer entitlements under the 2009 scheme year by submitting a Transfer of Entitlements form. The closing date for receipt of such applications is the 15 May 2009.
Adult Education.
Martin Ferris
Question:244 Deputy Martin Ferris asked the Minister for Education and Science if he will provide assurances that the number of post-leaving certificate places in County Kerry will be increased to ensure that there is adequate capacity to cope for some of the many newly unemployed people in the county who wish to avail of the opportunity to engage in further education and retraining. [19150/09]
From September 2009, an additional 1,500 Post Leaving Certificate (PLC) places will be made available nationwide. This will bring the total number of approved PLC places to 31,688. No decision has been made yet with regard to the allocation of these additional 1,500 places.
School Accommodation.
Kieran O'Donnell
Question:245 Deputy Kieran O’Donnell asked the Minister for Education and Science the schools in Limerick city and county at which prefabs are being rented; the number and cost of these prefabs for each school in Limerick city and county for the past year; the projected number and cost for each school in Limerick city and county for 2009; if he will provide this information in tabular format; and if he will make a statement on the matter. [19148/09]
I will forward to the Deputy the information that is available to my Department in relation to the issues he has raised.
Special Educational Needs.
Bobby Aylward
Question:246 Deputy Bobby Aylward asked the Minister for Education and Science if he will approve the application for funding for the provision of a laptop for a person (details supplied) in County Kilkenny; and if he will make a statement on the matter. [19179/09]
As the Deputy will be aware, the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENO) for allocating resource teachers and special needs assistants to schools to support children with special needs. SENOs also make recommendations to my Department where assistive technology is required. The NCSE operates within my Department's criteria in allocating such support.
My officials have been in contact with the NCSE regarding the matter referred to by the Deputy and I understand that the pupil in question does not meet my Department's criteria for the allocation of a laptop. All schools have the names and contact details of their local SENO. Parents may also contact the SENO directly to discuss their child's special educational needs, using the contact details available on www.ncse.ie. It is open to the school and/or parents to contact the SENO in the context of supports that may be available to support the pupil in question.
Joe Carey
Question:247 Deputy Joe Carey asked the Minister for Education and Science if in view of his comments during last week’s Private Members’ motion on special needs classes, he will confirm that the special class associated with a school (details supplied) will continue unchanged for the academic year starting 2009; and if he will make a statement on the matter. [19197/09]
As the Deputy will be aware, the National Council for Special Education (NCSE), through the local Special Educational Needs Organisers (SENOs), is responsible for co-ordinating special needs education provision at local and national level and arranging for the delivery of special education services.
I understand that the school referred to by the Deputy has been in contact with my Department in relation to this matter. I am aware that all of the children enrolled in the class do not have a mild general learning disability and my officials have advised the school to make contact with the SENO in the context of the designation of the class.
Schools Building Projects.
Sean Sherlock
Question:248 Deputy Seán Sherlock asked the Minister for Education and Science the progress made on the provision of a new school for a school (details supplied) in County Cork where; and if he will make a statement on the matter. [19201/09]
The project at the school to which the Deputy refers is at an advanced stage of architectural planning. My Department recently approved the Revised Stage 2(a) submission subject to certain comments being fully addressed.
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 further progression of the project at this time.
Paul Kehoe
Question:249 Deputy Paul Kehoe asked the Minister for Education and Science the position with regard to the new school building for a school (details supplied) in County Wexford; and if he will make a statement on the matter. [19226/09]
The school to which the Deputy refers has applied to my Department for large scale capital funding for a building project. I met with a deputation from the school in December when they outlined proposals to overcome the difficulties which had arisen in obtaining planning permission for the extension and refurbishment of the existing school. My Department will consider how best to address these difficulties in consultation with the school and its design team.
The progression of all large scale building projects, including this project, from initial design stage through to construction will be considered in the context of my Department's multi-annual School Building and Modernisation Programme. However, in light of current competing demands on the capital budget of my Department, it is not possible to give an indicative timeframe for the progression of the project at this time.
School Curriculum.
Paul Connaughton
Question:250 Deputy Paul Connaughton asked the Minister for Education and Science the position regarding the driver education course transition year module; the number of schools involved; when this particular module will become accessible to all schools; and if he will make a statement on the matter. [19234/09]
There are no plans to offer a driver education course in Transition Year. However, a Road Safety programme for Transition Year has been developed by the Road Safety Authority in collaboration with my Department, the National Council for Curriculum and Assessment and the Second level Support Service and has been offered nationally as an option since September 2008, following a successful pilot in 2007/8. The programme is available in twenty hour and forty-five hour units. It features inputs from agencies such as the ambulance service, fire service and An Garda Síochána, as well as providing for visiting speakers, trips out of school, projects and case studies.
The programme provides for an introduction to road safety for pedestrians, cyclists, motorcyclists and motorists, and covers such issues as seatbelts and airbags, driver fatigue, drink/drug driving, enforcement, basic first aid at road crashes, emergency services and rehabilitation. The programme is also supported by digital resources, including DVD support and access to international websites on road safety issues. Relevant Driver Theory Test learning is included at the end of each module. The programme does not include driving lessons.
In addition, the Social Personal and Health Education (SPHE) programme, which is mandatory in primary schools and at junior cycle level, provides a framework under which the generic values and skills which underpin responsible decision-making, and respect for the rights and safety of others, can be developed and promoted among students. SPHE has a specific personal safety strand within the programme, and this provides a mechanism through which road safety issues for all can be best dealt with in an age appropriate way. Road safety programmes have been developed by the Road Safety Authority at primary and junior cycle level for this purpose.
Special Educational Needs.
David Stanton
Question:251 Deputy David Stanton asked the Minister for Education and Science when the review of the general allocation model began; when he expects it to be completed; the details of the relevant partners as referred to in his speech (details supplied) who were consulted as part of this review; and if he will make a statement on the matter. [19259/09]
As the Deputy will be aware, the general allocation model was introduced in primary schools in September 2005 to ensure that each school has learning support/resource teaching support available to meet the needs of children with high incidence special educational needs including children with mild general learning disabilities.
When the model commenced, a commitment was given to carry out a review after three years of operation. This review commenced in 2008. The process involves engaging with the Education Partners which includes parent, management and union interests in the context of securing their views on the model's operation. It is expected that the review will be completed in 2009.
Departmental Expenditure.
Finian McGrath
Question:252 Deputy Finian McGrath asked the Minister for Education and Science if he will support a school (details supplied) in Dublin 7. [19260/09]
The details supplied by the Deputy relate to the impact on a particular school in Dublin 7 of a number of the budget measures. I have consistently said that the 2009 Budget required difficult choices to be made across all areas of public expenditure. These decisions were made to control public expenditure and to ensure sustainability in the long run. In this respect Education while protected to a much greater extent than most other areas of public expenditure could not be totally spared. The various impacts at school level were included in the Budget day announcements. My Department has also followed with guidance to schools in the form of new circulars in the areas such as the allocation of language support teachers and also the new interim arrangements for substitution cover. These circulars are available on my Department's website. Even with the Budget measures in place there will still be a significantly increased borrowing requirement in 2009.
I fully accept that these decisions are not of themselves desirable and that they can only be justified by the imperative of securing the future economic stability of the country. I have called for co-operation from all the education partners in meeting the challenges facing us both as an education community and as a country.
School Staffing.
Brian O'Shea
Question:253 Deputy Brian O’Shea asked the Minister for Education and Science his views on the appeal by a primary school (details supplied) in County Waterford against the staffing allocation to be implemented in September 2009; and if he will make a statement on the matter. [19268/09]
I am aware of the correspondence received in my Department from the school referred to by the Deputy. The school has submitted an appeal to the Primary Staffing Appeal Board and this will be considered by the Board at its meeting on the 14th May 2009. The school will be advised of the outcome of the appeal shortly thereafter in the normal way.
Details of the criteria under which appeals are considered by the Appeal Board are contained in the staffing schedule, Circular 0002/2009, available on my Department's website. The Appeal Board operates independently of the Department and its decision is final.
School Enrolments.
Bernard J. Durkan
Question:254 Deputy Bernard J. Durkan asked the Minister for Education and Science if he or his Department have been informed of the lack of school placements at second level in the area of Derrinturn, Carbury, County Kildare; if provision can or will be made to increase same in view of the increased demand in the area; and if he will make a statement on the matter. [19388/09]
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 future school years. 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. Post-primary accommodation requirements for the Derrinturn area will be considered in this regard.
Site Acquisitions.
Kieran O'Donnell
Question:255 Deputy Kieran O’Donnell asked the Minister for Education and Science the status in securing a site for a school (details supplied) in County Limerick; when he expects work to commence on the new school; and if he will make a statement on the matter. [19391/09]
In view of the current budgetary constraints I am not in a position to provide the Deputy with a definite date for the acquisition of a site for this school. The further consideration of the proposed site acquisition and any subsequent building project for the school will be considered in the context of my Department's multi-annual school building and modernisation programme.
School Transport.
Caoimhghín Ó Caoláin
Question:256 Deputy Caoimhghín Ó Caoláin asked the Minister for Education and Science if his attention has been drawn to the impact that revised ticket charges for school transport will have on pupils and their families in the 2009-10 school year. [13629/09]
I wish to point out that, despite the escalating costs of the service from €109.8 million in 2004 to €192 million in 2009 or 75%, charges for school transport had not been increased from 1998 until the third school term in the 2007/08 school year. A further increase was put in place at the start of the 2008/09 school year and the new charges come into effect from September 2009.
In the overall context and in order to minimise the overall effects, these charge increases have been confined to the 55,000 eligible post-primary and children availing of concessionary transport. Charges continue to be waived in the case of eligible post-primary children (or over 22,300 children) where the family is in possession of a valid medical card. Eligible children attending primary schools and children with special needs (or 54,500 children) will still travel free. A maximum family rate of €650 will also be applied.
Parents are also being given the option of spreading the amount due over two payments payable in July and December 2009. Those who pay the full annual charge, in advance, will benefit from a ticket being issued for the school year and this includes pupils on concessionary travel.
The total contribution of charges from parents in 2009 will still only represent about 8.6% of the overall expenditure for school transport. 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 a change in the payment arrangements. My Department has also commenced a Value for Money Review of the School Transport Scheme which is due to be completed before the end of the year.
National Disability Strategy.
David Stanton
Question:257 Deputy David Stanton asked the Minister for Education and Science the funding and expenditure allocated to all four elements of the National Disability Strategy as per its announcement on 21 September 2004; the amount allocated and expended under each element each year to date; the amount expected to be allocated in 2009 and 2010; and if he will make a statement on the matter. [19424/09]
The National Disability Strategy supports and reinforces equal participation in society of people with disabilities. Its elements include — the Education for Persons with Special Educational Needs Act, 2004, the Disability Act, 2005 and its associated Sectoral Plans published in 2006 by six Government Departments, the Citizens Information Act, 2007 and a commitment to a multi-annual investment programme for disability support services.
The Deputy will be aware that although my Department does not have a Sectoral Plan under the Disability Act, appropriate education services are supported as a central element in the Government commitment to supporting those with special educational needs/disability.
This support is provided across a wide spectrum of initiatives within the education sector. At school level, in addition to the teachers provided in the classroom, significant additional supports are also provided to enable schools to cater for the needs of students with special educational needs. Such supports include additional resource teaching support, special needs assistant support, special transport arrangements, enhanced capitation and funding for the purchase of specialised equipment.
When the overall annual spend in 2009 to support persons with special educational needs is considered, my Department will spend an estimated €1bn in total by the end of this year. The equivalent spends for 2004, 2005, 2006 and 2007 and 2008 are €468m, €605m, €706m and €838m and over €900m respectively. With these levels of investment, it is clear that significant progress has been made in educational provision for people with special needs in recent years. This progress has been achieved through the additional investments made by successive Ministers for Education. Advances in the level of dedicated provision to support children with special educational needs include:
Schools are now allocated extra resource teachers and special needs assistants to enable them meet the special educational needs of students. In the region of 19,000 staff in our schools work solely with children with special needs.
Special Needs Assistant posts have increased from under 300 in 1997 to over 10,000 in 2009.
Primary schools are staffed up-front with additional teachers to cater for the most prevalent special educational needs — removing the need for assessments and delays in recruitment.
The level of training available to teachers has improved significantly. The establishment of the Special Education Support Service to provide expert support, professional development and training opportunities in special education for school staff has been very significant. In 2008, the service was in contact with over 23,000 teachers. The range of post-graduate professional training programmes available to professionals in the special needs area has also significantly expanded.
The National Educational Psychological Service (NEPS) aims to support the personal, social and educational development of all children through the application of psychological theory and practice in education, having particular regard for children with special educational needs.
The National Council for Special Education (NCSE) was established to co-ordinate the delivery of services for children with special needs. The NCSE is responsible, through its network of local Special Educational Needs Organisers, for allocating resource teachers and special needs assistants to schools to support children with special needs.
Assistive technology, specialist equipment, building adaptations and special school transport arrangements continue to be provided as necessary. As announced on Budget day, in the current financial circumstances it is not possible to proceed with full implementation of the EPSEN Act in 2010 as originally envisaged. Government will keep the matter under review and is committed to the full implementation of EPSEN at the earliest possible date.
I am particularly pleased that, in order to strengthen and enhance services, and continue the preparation for the full implementation of the Act at a later date, the Government provided €20m in 2009 — €10m for education services and €10m for health services.
In my Department this additional funding will provide for an expansion of the NEPS service so that all schools in the country will be covered by the service as well as enhancing the capacity of the NCSE to co-ordinate the provision of services to children with special educational needs. In addition teachers and special needs assistants will continue to be deployed to schools to meet children's needs and there will be further investment in teacher training in this area.