Vol. 766 No. 2
9 Deputy Denis Naughten asked the Minister for Finance his plans to assist families in mortgage difficulty; the discussions, if any, he is planning with the Irish Financial Services Regulatory Authority on the issue; and if he will make a statement on the matter. [25418/12]
18 Deputy Jonathan O’Brien asked the Minister for Finance when it is expected that banks will make the suite of options on mortgages recommended in the Keane report available to the public. [25645/12]
I propose to take Questions Nos. 9 and 18 together.
The Government is acutely aware of the increasing financial stress that some households are facing arising from difficulty in meeting their mortgage commitments. The Deputy will be aware that mortgage holders who are in difficulty with their mortgage obligations have significant protections available to them under the Central Bank's Code of Conduct on Mortgage Arrears. In addition, the Department of Social Protection's mortgage interest supplement scheme also provides for direct support to mortgage holders that have had to avail of social welfare support and over 18,000 households currently avail of this benefit. Budgeting advice is available through MABS which is also funded by the Department of Social Protection.
These existing supports are being supplemented by new measures arising from the implementation of recommendations contained in the Interdepartmental Committee's Report. A mortgage to rent scheme involving the Department of the Environment, Community and Local Government and voluntary housing bodies is being piloted by a number of the banks in advance of a wider rollout. More generally, the Central Bank has asked all lenders to submit Board approved loan modification and resolution options such as those recommended in the Inter-Departmental Committee's report as well as details on the segmentation of their mortgage portfolio by the end of May. The intention will be that banks will make proposals for each of the segmented categories and develop them into solutions for activation during the second half of this year. Personal insolvency reform of course is also a key measure in the mortgage arrears resolution process. As you are aware the Minister for Justice, Equality and Defence published the draft heads of a Personal Insolvency Bill earlier this year and the Minister has indicated that the draft legislation will be published before the end of June.
The Central Bank, both from a consumer protection and prudential regulation perspective, has a very significant role to play in addressing the problem of mortgage arrears. Central Bank representatives participate in a Steering Group of Senior officials to oversee and drive the implementation of the recommendations contained in the report of the Inter-Departmental Working Group on Mortgage Arrears across Government.
The Deputy will also be aware that since last March, a special Government Committee focused on this issue has been meeting on a regular basis to ensure that a high priority is assigned to the delivery of the implementation of the "Keane report" recommendations across relevant Departments and agencies. The Committee is chaired by An Taoiseach and includes all the Ministers that have a role in this broad area and will ensure action on the part of all involved in addressing this difficult issue for those households unable to meet their mortgage commitments. To aid the Committee's deliberations, the Central Bank has made presentations to the Cabinet Committee and I anticipate that this will be an ongoing engagement as Government deals with this difficult issue for those households unable to meet their mortgage commitments.
10 Deputy Robert Dowds asked the Minister for Finance if he has given consideration to giving road hauliers a rebate on their fuel costs as is practised in other European countries; if his attention has been drawn to the fact that many hauliers purchase their fuel in other European countries in which it is more cost effective to do so leading to a loss of tax revenue to the Exchequer; and if he has prepared any estimates for the potential increased revenue to the State in the case of a 20 cent per litre rebate on fuel for road hauliers. [25414/12]
The Deputy may be aware that a working group was set up between officials of my Department, the IRHA and members of the Oireachtas. This working group is discussing a number of issues of concern to the haulage industry.
Among the issues examined by the group is an essential user's rebate system. I should point out that a fuel rebate system, as sought by the IRHA, could not under EU law be restricted to Irish licensed hauliers but would have to be extended to all vehicles intended exclusively for the carriage of goods by road with a maximum permissible gross laden weight of not less than 7.5 tonnes. In addition, the rebate would have to include the carriage of passengers by a motor vehicle of category M2 or category M3 as defined in Council Directive 70/156/EEC. It should also be noted that under Directive 2003/96/EC the maximum permissible relief at current Mineral Oil Tax rates is actually 14.902 cent per litre.
While the haulage industry contend that there could be a potential benefit to the Exchequer due to hauliers changing their purchasing behaviour there is also a potential cost to the Exchequer given the scope and the amount of the relief permissible under the Directive.
11 Deputy Clare Daly asked the Minister for Finance noting that the ECB has provided more than €1,000 billion to European banks at 1% for three years, his views on whether this resource would be more productively used as part of a stimulus programme of necessary public works throughout the EU to enable the unemployed to work again and to thereby kick-start economies throughout the EU. [19800/12]
The sizeable expansion in the ECB's balance sheet since this crisis began which manifested itself most recently in the two three year repos exercises, are all designed to stabilise the European banking sector and ensure institutions across the Eurozone are in a position to continue lending into the economy.
As a point of clarification, the €1 trillion of lending you refer to was the gross amount of loans issued in the two recent three year operations. After refinancing, the net increase in the ECB's balance sheet was less than this. Having said that they helped contribute to an increase in liquidity provided by the ECB of nearly €600 billion between November and April. It is impossible to directly measure the impact of these measures on lending and economic activity, as there is no counterfactual. However what we do know is that conditions would be considerably worse in the absence of these interventions by the ECB. As the Deputy may be aware, the ECB cannot lend directly to sovereign governments, it can only lend to licensed credit institutions with MFI (monetary financial institutions) status in exchange for appropriate collateral.
Governments across the Eurozone can of course raise funding on the international markets from investors who may include banks who are supported by the ECB, or funds/institutions who have borrowed from those same banks. It is a decision for individual governments whether or not to stimulate their own economies through public works projects taking into account factors such as cost and availability of funds, debt sustainability and traditional cost/benefit analysis.
The government is supportive of the growing calls across the Eurozone for a growth and stimulus agenda which is why we strongly argued — and secured agreement — that within our own funding programme we be allowed use a greater portion of funds derived from state asset disposals for such purposes.
13 Deputy Catherine Murphy asked the Minister for Finance if he will provide a breakdown of staffing levels in his Department by division, including current vacancies; if vacancies in his Department are having an appreciable effect on the ability of his Department to provide an optimum level of service provision; if so, the particular areas that are affected; the measures he proposes to address the shortfall; and if he will make a statement on the matter. [25419/12]
Please find detailed below the number of Whole Time Equivalents (WTE's) employed in my Department at 30 April 2012:
|
Grade |
Total |
|
Secretary General |
1.00 |
|
Second Secretary |
2.00 |
|
Assistant Secretary |
5.00 |
|
PO |
23.00 |
|
AP |
60.10 |
|
AO |
13.00 |
|
HEO |
21.33 |
|
EO |
22.90 |
|
SO |
16.60 |
|
CO |
71.16 |
|
Services Officer |
19.00 |
|
Services Attendant |
2.00 |
|
Driver |
2.00 |
|
Grand Total |
259.09 |
The revised Statement of Strategy for the Department sets out its mission: "to manage Government Finances and play a central role in the achievement of the Government's economic and social goals having regard to the Programme for Government. In this way we will play a leadership role in the improvement of the standards of living of our citizens".
This Department is redirecting our own primary focus more towards the identification and implementation of measures which will contribute to enhanced confidence, delivering sustainable growth in our economy and thereby repair the damage caused to the lives of citizens, the economy and the banking sector.
As also explained in the Statement of Strategy "As a result, during 2012 and 2013, we will actively engage in a threefold action plan.
This will firstly involve training our existing teams so that they can develop greater technical, management and leadership skills necessary to the challenge. Using the performance management evaluation system, we will review our staff and identify any skills which need enhancing so as to use the training resources most effectively.
We will challenge and acknowledge the efforts of our key performing staff by further developing their skills and add to the value they contribute to the Department.
In parallel, we will be adding to our teams to supplement our skills base where gaps are identified. This will also be necessary for succession planning for the work of future generations of our department.”
The addition of any new staff will occur through a combination of employment via open competition and the secondment of staff from other areas of the Civil/Public Service and private sector.
14 Deputy Sandra McLellan asked the Minister for Finance if any talks have been held with prospective investors to sell off any of the State’s shareholding in AIB. [25634/12]
As announced to the House in September last year, I am aware that AIB has held initial preliminary meetings with equity investors who have expressed an interest in potentially acquiring a stake in AIB. Following these discussions, I am informed by the bank that they expect investors will require more visibility on the bank's performance, particularly its asset quality, before discussions move beyond the preliminary and exploratory stage.
At present, AIB is undergoing a significant restructuring process and as one of the two pillar banks in the domestic economy it is natural that investors will seek to have preliminary discussions with both the bank and the State in order to better understand the underlying performance and value of the AIB franchise. The 2011 transaction completed by the State with private investors in Bank of Ireland demonstrates that international money managers remain optimistic over the outlook for the Irish economy. As and when any concrete interest is expressed by external investors in making an investment in AIB it will be carefully evaluated by my staff and the bank to ensure that taxpayers' interests are protected at all times.
15 Deputy Mary Lou McDonald asked the Minister for Finance his views on whether the proposal in the programme for Government for a bank levy to be applied once the banking sector began functioning again will be applied in the lifetime of this Government; and the type of levy he envisions being applied. [25632/12]
The Government remains committed to the objective in the Programme for Government to introduce a bank levy, and is working to ensure this is met during the lifetime of this Government. The Central Bank and Credit Institutions (Resolution) Act 2011 provides for the introduction of such a levy on authorised credit institutions, to be paid into a bank resolution fund. The Act provides that all authorised credit institutions will be levied at a rate prescribed in or to be calculated in accordance with regulations made by the Minister under section 15 of the Act.
My Department is currently working on the formulation of regulations to introduce the levy. In making these regulations the Minister for Finance is required by the 2011 Act to have regard for the requirement to balance the need for the Fund to grow to an effective size with the need for the rate of contribution to be consistent with maintaining the commercial viability of credit institutions and also bearing in mind the difficulties facing the overall sector. Under the terms of the EU/IMF Programme of Financial Support for Ireland the regulations to introduce the Resolution Fund levy on credit institutions will be approved by end September 2012. Final confirmation of the format of the Regulations will be subject to further consultation with the Governor of the Central Bank and to the extent they relate to Credit Unions with the Credit Union Advisory Committee.
16 Deputy Timmy Dooley asked the Minister for Finance the position regarding the ongoing discussions to reduce the burden of the remaining promissory notes liability; and if he will make a statement on the matter. [25590/12]
As the Deputy is aware, the Government is committed to reviewing the arrangements that were put in place to capitalise IBRC. The purpose of this review is to determine if there is a way to reduce the overall cost to the State. Part of the capitalisation of IBRC was provided using promissory notes as consideration. The Troika has agreed to engage in this process to produce a common paper which will consider all options for restructuring the notes in terms of the source of funding, the duration of the notes, the interest rate etc.
While the development in relation to the end March Promissory Note payment is a positive development, we must keep our eye on the greater benefits which would derive from the re-engineering of the promissory note and also the potential improvements for the banking sector which could also stem from the ongoing technical discussions. Further, it should be borne in mind that recent concerns in the Eurozone underpin the fact our problems are part of a wider European dilemma and to the need for solutions to address the Irish situation as part of an overall Eurozone/global solution.
It is for these reasons that we must look at the recent developments in relation to the Promissory Note repayment as an initial step to facilitate a project where, if we are successful, it will be in the medium term rather than immediately. These discussions will continue and the Government is focused on developing an alternative solution to the promissory note arrangement in IBRC. The ongoing discussions may also explore options to refinance the long term Government bond issued in settlement of the March 31 payment. We all want to arrive at a successful conclusion that is in the interests of Ireland and the EU.
17 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the progress that has been made on ensuring the minimum effective rate income tax rate of 30% is being met for high earners; and his plans to increase the minimum effective rate. [25630/12]
The high earner's restriction for individuals on high incomes, who make significant use of certain specified tax reliefs, was announced in Budget 2006 and came into effect from 1 January 2007.
The restriction works by limiting the total amount of specified reliefs that a high income individual can use to reduce his or her tax liability in any one tax year. Prior to the introduction of this restriction, such individuals, by means of the cumulative use of various tax incentive reliefs, had been able to reduce their tax liability to very low levels or to zero.
The restriction, as introduced, was designed to ensure that individuals with adjusted income exceeding €500,000 paid an effective rate of tax of approximately 20% on that income. That objective was achieved in 2007, 2008 and 2009. Where adjusted income was between €250,000 and €500,000, a tapering system ensured that there was a graduated introduction of the restriction, with the effective rate of tax increasing towards 20% as adjusted income increased towards €500,000.
In Budget 2010, changes to the restriction from the 2010 tax year were announced. Those individuals with adjusted income exceeding €400,000 will, as a result, now pay an effective income tax rate of approximately 30% on that income, while individuals will now become subject to the restriction and the associated taper, where adjusted income is €125,000 or greater and where they claim €80,000 or more in specified reliefs.
The Programme for Government included a commitment to ensure a minimum effective tax rate of 30% for very high earners. The changes already made in Budget 2010 should ensure that this is achieved.
The report on the operation of the high earners' restriction in respect of the 2010 tax year is currently being compiled by the Revenue Commissioners. It is expected that this report will be presented to me and published on my Department's website later this year.
As indicated in my Budget speech last December, following the receipt of this report and analysis of its contents, I will decide whether any further change to the restriction is warranted in Budget 2013.
19 Deputy Micheál Martin asked the Minister for Finance the discussions he has had with his European colleagues regarding the possible use of project bonds as a means to co-finance infrastructure projects across the community; and if he will make a statement on the matter. [25686/12]
The Europe 2020 Project Bonds Initiative has been proposed by the EU Commission to help promoters of infrastructure projects attract additional private sources of finance from institutional investors. Under the initiative, the European Investment Bank (EIB) will provide credit enhancement to project companies issuing bonds to finance infrastructure projects. This will improve the rating of the senior debt of the project companies and allow them to raise funds more easily.
The intention is to increase the availability of debt financing for large-scale infrastructure projects in the areas of transport, energy and broadband. It is intended to launch a pilot phase for the Europe 2020 Project Bond Initiative once the European Parliament and the Council have approved the legislative proposal amending the Trans-European Networks (TEN) Regulation and the Competitiveness and Innovation framework Programme (CIP) Decision and redeployed existing budget allocations of these programmes and subject to the agreement of the EIB's governing bodies .
20 Deputy Denis Naughten asked the Minister for Finance the steps being taken to regulate food securities trading on the stock market; and if he will make a statement on the matter. [25417/12]
Food securities trading forms part of the regulation of derivatives. As the Deputy knows, the regulation of derivatives has been part of our discussions with the EU, and has been on the Ecofin agenda since September 2010, when the Commission published its proposal to regulate this market in the context of over-the-counter (OTC) trades.
I can inform the Deputy that, following discussions, agreement on a final text has been reached with all of the EU institutions, subject to final technical details being clarified. The scope of this draft Regulation covers all over-the-counter derivatives, not just food securities.
In relation to derivatives traded on exchanges, as I indicated in my last reply to the Deputy in February, Ireland already has a regulatory regime which comes from the 2004 EU Markets in Financial Instruments Directive (MiFID), which is currently being reviewed.
The work on both OTC derivatives and the MiFID review is expected to result in a tighter regime for all derivatives, including food securities, whether traded OTC or through exchanges. The measures are intended to keep pace with trends in derivatives trading, and in line with G20 commitments. When finalised, these EU legislative initiatives will come into force in all Member States. The Central Bank of Ireland is the competent authority in this country for the purposes of derivatives legislation.
21 Deputy Éamon Ó Cuív asked the Minister for Finance if he plans any interim measures to assist distressed borrowers prior to the finalisation of the personnel insolvency legislation; and if he will make a statement on the matter. [25604/12]
The Report of the Inter-Departmental Group on Mortgage Arrears indicated that the reform of personal insolvency legislation is a central catalyst to the resolution of the mortgage arrears problem. In particular it stated that new non-judicial debt settlement arrangements are vital to address the problem.
The Deputy will be aware that the Minister for Justice, Equality and Defence published the general scheme of a Personal Insolvency Bill for public consultation at the end of January. The Bill is currently being drafted by the Department of Justice in co-operation with the Office of the Attorney General and the Parliamentary Counsel. The Deputy will appreciate that this is a very lengthy and complex Bill from a legal standpoint, with proposed provisions which do not currently exist in Irish law. The Bill remains a legislative priority for the Government and publication of the Bill is the end of June. The Minister for Justice has indicated his strong intention to commence the Second stage prior to the Summer recess to facilitate early passage of the legislation through the Oireachtas in the Autumn session.
The Deputy will also be aware that mortgage holders who are in difficulty with their mortgage obligations have significant protections available to them under the Central Bank's Code of Conduct on Mortgage Arrears. In addition, the Department of Social Protection's mortgage interest supplement scheme also provides for direct support to mortgage holders that have had to avail of social welfare support and over 18,000 households currently avail of this benefit. Budgeting advice is available through the MABS which is also funded by the Department of Social Protection.
These existing supports are being supplemented by new measures arising from the implementation of recommendations contained of the Interdepartmental Committee's Report. A mortgage to rent scheme involving the Department of the Environment, Community and Local Government and voluntary housing bodies is being piloted by a number of the banks in advance of a wider rollout. More generally, the Central Bank has asked all lenders to submit Board approved loan modification and resolution options such as those recommended in the Inter-Departmental Committee's report as well as the segmentation of their mortgage portfolio by the end of May. The intention will be that banks will make proposals for each category and develop them into solutions for activation during the second half of this year. It is not the case that the activation of these measures is dependent on the enactment of the Personal Insolvency legislation but rather they offer a framework within which agreement can be reached on a case-by-case basis between the lender and the borrower.
The Deputy will also be aware that since last March, a special Government committee focused on this issue has been meeting on a regular basis to ensure that a high priority is assigned to the delivery of the implementation of the "Keane report" recommendations across relevant Departments and agencies. The committee is chaired by An Taoiseach and includes all the Ministers that have a role in this broad area and will ensure action on the part of all involved in addressing this difficult issue for those households unable to their mortgage commitments.
22 Deputy Martin Ferris asked the Minister for Finance if the State has met the targets set out in the Memorandum of Understanding with respect to the Fiscal Advisory Council and the reform of the legal, medical and accounting professions. [25640/12]
The Memorandum of Understanding (MoU) for our EU/IMF Programme of financial assistance was signed in December 2010, and following each of the subsequent quarterly reviews by the Troika, an update of the MoU is agreed. Each update to the MoU can include the continuation of or revisions to existing commitments along with new commitments.
The EU/IMF Programme commitments in relation to the Irish Fiscal Advisory Council have been met in full to date. The commitment in relation to the Fiscal Advisory Council was initially included in the MoU of December 2010. This provided that the Fiscal Advisory Council would be established by end-June 2011. The Irish Fiscal Advisory Council was established at the end of June 2011 on a non-statutory basis and commenced operations the following month thereby meeting this commitment.
A further requirement was included in the updated Memorandum of Understanding following the third review in July 2011 to provide for the statutory establishment of the Irish Fiscal Advisory Council in the Fiscal Responsibility Bill to be submitted to the Oireachtas by the end of December 2011. In light of the reform of the Stability and Growth Pact implemented by the so called "six pack" of five regulations and one directive and the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union ("the Stability Treaty") it was agreed to revise the deadline for the submission of the Fiscal Responsibility Bill a number of times in subsequent missions.
The most recent update to the MoU (signed in March 2012) includes a commitment, under the heading Structural Fiscal Reform, to be met by end-Q2 2012 which is:
“Fiscal Framework
Government will introduce a Fiscal Responsibility Bill consistent with the economic governance framework at the EU level, including provisions for a medium-term budgetary framework and fiscal rules. The Bill will also put the Fiscal Advisory Council on a statutory footing, formalising the Council’s independence through clear arrangements for adequate funding over time and for Council membership, including consultation with the relevant committee of the Oireachtas for nomination, appointment, extension and termination.”
On 26 April 2012, in the context of ensuring that the public will be fully informed on the implications of the Stability Treaty and have access to all available information to enable them to make an informed decision, I published a General Scheme of a Bill to be called the Fiscal Responsibility Bill. This sets out the draft legislation that the Government will bring before the Houses of the Oireachtas to implement key provisions of the Stability Treaty, if the Irish people decide to ratify the Stability Treaty in the forthcoming referendum. The General Scheme includes provision for the establishment of the Irish Fiscal Advisory Council on a statutory basis as it will be the independent institution at national level with responsibility for monitoring compliance with the rules set out in Article 3 of the Stability Treaty. A copy of the General Scheme was circulated to all Members of the Oireachtas and it is available on the Department of Finance's website.
While issues relating to the reform of the legal, medical and accounting professions are matters for the Ministers of Justice and Equality, Health, and Jobs, Enterprise and Innovation respectively, I have been informed as follows.
On the issue of reform of the legal profession, the Legal Services Regulation Bill 2011 provides the statutory framework for delivering those structural reforms undertaken in the EU/IMF Memorandum of Understanding on Specific Economic Policy Conditionality aimed at removing restrictions to trade and competition in the legal sector.
The Legal Services Regulation Bill commenced Second Stage in the Dáil on 16th December 2011 which was completed on 23rd February 2012. In closing the Second Stage debate Minister Shatter outlined the approaches being taken to enhancing the Bill in preparation for Committee Stage — the objective is to commence Committee Stage before the summer recess.
On the issue of reform of the medical profession the EU/IMF programme provides for the introduction of legislative changes to remove restrictions to trade and competition in sheltered sectors by the end of the 3rd quarter in 2011, including medical services, eliminating restrictions on the number of GPs qualifying and removing restrictions on GPs wishing to treat public patients as well as restrictions on advertising.
Targets were met in relation to medical services:
The Health (Provision of General Practitioner Services) Act 2012 came into effect on 12th March 2012; the Bill was published on 30th September 2011. This Act provides for the elimination of restrictions on GPs wishing to obtain contracts to treat public patients under the GMS Scheme by opening up access to all fully qualified and vocationally trained GPs.
Legislation was not required for the other elements:
Restrictions on advertising by GPs had already been eliminated.
A "practice based assessment model" has been developed to evaluate and implement an appropriate fast-track training scheme for doctors who have extensive experience in Irish General Practice, but who lack some component of training making them ineligible for specialist registration.
There is no commitment in any of the Memoranda of Understanding relating to reform of the accountancy profession.
23 Deputy Jim Daly asked the Minister for Finance the amount that has been saved in the 2012 spending budget as a result of the non-payment of the Anglo promissory note; if this saving is available for spending in other areas; if he will consider injecting this revenue into a targeted investment in infrastructure such as broadband; and if he will make a statement on the matter. [25568/12]
The Deputy should be aware that the State met fully its obligations with regard to this year's promissory note payment to IBRC (formerly Anglo Irish Bank and Irish Nationwide Building Society). This year's payment was settled through a different mechanism than in 2011 — with a Government bond rather than a direct cash payment from the Exchequer — but nevertheless the 2012 IBRC promissory note payment was settled and so the term "non-payment" does not arise in this case. The benefits to the Exchequer from this transaction mainly relate to an improved cash position and more flexibility around funding.
Under the terms of the ECOFIN Council decision of December 2010 upon entering the EU/IMF Programme, there are General Government deficit targets which we must adhere to each year. This year that deficit must be no greater than 8.6 per cent of GDP.
Payment of this year's €3.06 billion IBRC promissory note instalment was not due to have any impact on the General Government deficit this year as the full €30.6 billion IBRC promissory note was included as part of the General Government deficit back in 2010. The fact that this year's payment was settled through a Government bond rather than with cash from the Exchequer does not therefore give scope for additional expenditure as this could jeopardise our budgetary targets. Furthermore, it must be acknowledged that given the very large deficits that we have been running for some years, it is important that we continue to close the gap that still exists between our expenditures and our revenues if we are to return the public finances to a sustainable position and protect future investment and growth.
In terms of targeted investment in infrastructure, it is the case that the Department of Public Expenditure and Reform has been actively engaged in identifying potential new sources of funding for projects where it makes sense and offers value for money for the State. The Government is now considering carefully what potential projects could be supported should a source of funding become available. It is likely that such investment would be focused on areas that meet the Government's key investment priorities, boost employment and help stimulate economic growth.
24 Deputy Michael McGrath asked the Minister for Finance his views on the impact of possible European assistance for the Spanish banking sector on Ireland’s efforts to reduce the cost incurred by this State in the rescue of banks; and if he will make a statement on the matter. [25574/12]
47 Deputy Pearse Doherty asked the Minister for Finance if, in the event of any European mechanism being established to assist Spain to keep bank recapitalisation off the sovereign balance sheets, such a mechanism could be used retrospectively to assist Ireland. [25626/12]
I propose to take Questions Nos. 24 and 47 together.
As the Deputy is aware the Government remains committed to reducing the cost incurred by the State in the rescue of the Irish Banks and to the protection of the States balance sheet. The recent agreement by the Troika to produce a common paper which will consider all options for the restructuring of the IRBC notes has the express purpose of determining if there is a way to reduce the overall cost to the State of the arrangements that were put in place to capitalise IBRC.
It is too early to make any assessment as to what mechanism will ultimately be arrived at in relation to the potential recapitalisation of the Spanish Banking Sector or to speculate as to how such mechanisms could if implemented be retrospectively utilised in Ireland. It should be borne in mind that the recent concerns in the Eurozone underpin the fact that the solutions to address the Spanish situation, as with the Irish situation, should be seen as part of an overall Eurozone/Global solution. We will continue to review the proposals that emerge in relation to the Spanish banks recapitalisation to ascertain if any of the proposed measures would have favourable applicability if implemented in Ireland.
25 Deputy Billy Kelleher asked the Minister for Finance if he will provide an update on the timeframe for the completion of the loan from Bank of Ireland to Irish Bank Resolution Corporation in connection with the promissory note payment which fell due at the end of March 2012; and if he will make a statement on the matter. [25594/12]
As the deputy is aware, Bank of Ireland (the "Bank") announced on 29 March 2012 that the Bank had reached a conditional agreement to conduct a securities repurchase transaction with IBRC. The Bank stated: “As the transaction is considered to be a related party transaction under Listing Rules, it is subject to independent stockholder approval. A circular containing additional details of the transaction and the date of the proposed Extraordinary General Court will be posted to stockholders once the circular has been approved by the UK Listing Authority and Irish Stock Exchange. It is anticipated that the transaction will become effective following satisfaction of all pre-conditions and independent stockholder approval.”
This is a commercial transaction between the Bank and IBRC. The Bank has stated in their announcement on 29 March 2012 that they will issue a circular and schedule and Extraordinary General Court in due course.
26 Deputy John Browne asked the Minister for Finance the manner in which any loans from the European Investment Bank to fund investment projects are treated in the Government accounts; his views on the possibility of the State drawing down additional funds from the EIB to fund infrastructure projects; and if he will make a statement on the matter. [25577/12]
The Exchequer does not currently have any loans from the European Investment Bank (EIB) but is negotiating a loan of €100 million from the Bank to part-fund the 2012 Exchequer Schools Programme. Any such borrowing would be carried out by the National Treasury Management Agency (NTMA) and would form part of the National Debt. The Bank is also an important provider of funding to semi-states and the private sector, including the funding of infrastructure through Public-Private Partnerships and lending to SMEs via the banks. In relation to capital investment projects, the Department of Public Expenditure and Reform has a role in terms of setting the overall capital investment framework and the basic principles to be observed for the appraisal, assessment, procurement and evaluation of projects. Individual Ministers are responsible for projects and programmes in their areas, within that overall framework. Decisions on the funding arrangements for those projects are also the responsibility of individual departments. Departments are obliged to seek the opinion of the National Development Finance Agency whose statutory role is to advise any State authority of what, in the opinion of the Agency, are the optimal means of financing the cost of public investment projects in order to achieve value for money.
Details about the funding arrangements for individual projects can be obtained directly from the relevant Department. However, I am aware that the European Investment Bank has given provisional approval to co-finance a number of PPP projects in the transport and education sectors, in addition to the €100 million towards the Schools Programme referred to above.
27 Deputy Aengus Ó Snodaigh asked the Minister for Finance the steps that have been taken to date to make the National Asset Management Agency more transparent. [25628/12]
The National Asset Management Agency is subject to a high level of public accountability compared to other commercial semi state bodies, reflecting the fact that it is managing a significant financial exposure on behalf of the Irish taxpayer. The NAMA Act 2009 makes the Agency accountable in a number of ways, including laying its annual report and audited financial statements before the Houses of the Oireachtas. The Chairman and Chief Executive are also accountable to the Committee of Public Accounts and other Oireachtas committees and give evidence to committees whenever required to do so.
In addition to its annual accounts, however, NAMA is also required to submit the Minister for Finance an Annual Statement setting out its proposed objectives for the following year, the scope of activities to be undertaken, its strategies and policies and its proposed use of resources. NAMA is also required to report to me on a quarterly basis giving detailed information about its loans, its financing arrangements and its income and expenditure. I am obliged to lay such reports before the Oireachtas.
I am advised that NAMA's accounts are comprehensively audited by the Comptroller and Auditor General, who has a permanent team of officers based in the Agency with unrestricted access to all its records and files. The process of loan valuation and acquisition is also being audited by the European Commission. The Management of loans by NAMA was also subject to a special report of the C&AG and that will be published very soon.
I am advised by NAMA that its Annual Report will be published within the next two months and will be a full and detailed account of its 2011 operations and results.
NAMA also makes itself available regularly to meet with Oireachtas members to discuss aspects of its work and strategy. It has a dedicated resource in place to facilitate correspondence and general enquiries from public representatives which the Agency advises is working very satisfactorily (oir@nama.ie).
Under the NAMA Act, the C&AG can conduct special reports into NAMA's operations and I can also request ad hoc reports in such form as I require.
Given all of the above, I feel NAMA's operations are currently sufficiently transparent.
28 Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he has estimated the potential costs that may be faced by banks as a result of the personal insolvency legislation; and if there is an estimate of the maximum the banks will be able to absorb from potential mortgage and other defaults. [25636/12]
The proposed new policy framework for personal insolvency to be set out in the Personal Insolvency Bill which the Minister for Justice and Equality plans to publish before the end of June 2012 was seen by the report of the Inter-Departmental Committee on mortgage arrears as a key catalyst in dealing with the problem of mortgage arrears. The introduction of these reforms will reinforce the Central Bank's ongoing interaction with individual lenders to enhance their Mortgage Arrears Resolution Strategies, the current phase of which involves the segmentation of loan books into sustainable and unsustainable categories and the development of a range of suitable options. The legislation should encourage lenders to allocate sufficient resources and attention to negotiating, where possible, voluntary debt restructuring arrangements with individual debtors on a bilateral basis outside of the non-judicial or judicial framework. However, it is not the case that the agreement of such restructuring arrangements is dependent on the enactment of the Personal Insolvency legislation but rather the legislation underpins a broader framework within which agreement can be reached on a case-by-case basis between the lender and the borrower. It should be noted that the proposed introduction of both the Debt Settlement Arrangements and the Personal Insolvency Arrangements (PIA) as an alternative to court based bankruptcy for over-indebted creditors should serve to support greater stability in the financial sector. Firstly these non-judicial mechanisms are premised on both debtors and creditors obtaining a better outcome than under the reformed bankruptcy regime. Secondly creditors avoid the administrative and financial costs of debt enforcement proceedings that are incurred through the courts process. Thirdly creditors, by agreeing to a PIA, can avert the immediate crystallization and write-down of negative equity that might otherwise occur in bankruptcy.
A further key aspect of the new legislation is that it will carefully distinguish between individuals who can't pay as opposed to those who won't pay. For individuals who are insolvent without any reasonable prospect of being able to repay their debts, the new legislation will allow them to rehabilitate their financial situation over a defined period. Any losses that creditors must bear as a consequence will not be caused by the new legislation but by the fact of the individual's insolvency.
The general position in relation to the capital situation of the Irish covered banks is that these institutions were subject to a robust, rigorous and independent Prudential Capital Assessment Review (PCAR) in March 2011 by the Central Bank and by international standards, such as the EBA, the Irish banks remain well capitalized. As a result, in July 2011, some €24 billion was invested in the Irish covered banks to cover losses from asset portfolios and deleveraging. On the basis of lifetime projections by BlackRock, losses were assumed on the residential mortgage books of between €5.7 billion and €9 billion under base and stress case scenarios over the 2011-13 period under PCAR. For the latest available period of data from the Central Bank, the mortgage arrears numbers lie between the Central Bank's base and stress tests projections.
29 Deputy Gerry Adams asked the Minister for Finance the number of the National Asset Management Agency’s valuations that have been appealed by the banks; the number of those appeals that were upheld; the value of the difference; and the banks that were involved. [25650/12]
The Deputy will be aware that, under Section 122 of the NAMA Act, a participating institution may dispute the total portfolio acquisition value of all bank assets acquired from it by NAMA if it believes that the aggregate market value of the acquired portfolio exceeds the total portfolio acquisition value. It may do this after service of a completion notice by NAMA. I understand that the EU Commission is currently engaged in an audit of the valuation of the loans transferred in the final Tranches. NAMA proposes to serve a completion notice on each institution after the Commission has indicated its approval of the valuation of all loan transfers from that institution. The timing of completion of that audit is a matter for the Commission.
When NAMA issues completion notices to the institutions, it will then be a matter for the Boards of the institutions to determine whether they wish to formally dispute the total portfolio acquisition value as finally approved by the Commission. If they decide to do so, the valuation appeal process specified in Sections 119-127 of the Act is thereby activated.
All of the participating institutions have submitted appeals to individual loan valuations under Section 121 but this section does not require any adjudication on valuations. The significance of Section 121 appeals is that if, in aggregate, the disputed valuations total more than 12.5% of the total portfolio acquisition value, the PI thereby qualifies to make an appeal under Section 122. The position is that to date no participating institution has yet disputed the total portfolio acquisition value of the portfolio acquired by NAMA.
30 Deputy Peadar Tóibín asked the Minister for Finance the amounts being lent by Irish banks to the small and medium enterprise sector; the amount of the €3 billion the banks are obliged to lend following recapitalisation has been lent; and if the Government-placed directors on the boards of the banks have reported any resistance to lending to SMEs. [25638/12]
As the Deputy is aware, the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the period 2011-2014. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013. The Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets.
I should stress again that the Government has imposed targets for the amounts of credit to be sanctioned by the banks- the targets are not for actual lending as the banks do not have control over when or if sanctioned credit is actually drawn down.
Data provided by the Central Bank indicates that the drawdown of new lending by non-financial SMEs from credit institutions in Ireland was €3.1 billion in 2011. For the Deputy's information, the relevant statistics for credit made available to small business are accessible at: http://www.centralbank.ie/polstats/stats/cmab/Documents/ie_Table_A.14.1_Credit_ Advanced_to_Irish_Resident_Small_and_Medium_Sized_Enterprises.xls
In relation to the public interest directors, the position is that any director appointed to the board of the covered institutions, whether under the CIFS scheme or otherwise, is subject to the requirements of company law in the discharge of his or her responsibilities as a company director. As such, the director is legally bound to act in what he or she believes are the interests of the separate legal entity that is the institution itself. These are the director's fiduciary responsibilities. Public interest directors do not have a formal reporting relationship to the Minister or to the Department of Finance.
However, in terms of my Department engaging with the banks on the issue of SME credit, the Deputy should note that the pillar banks are required to submit their lending plans to the Department and the Credit Review Office (CRO) at the beginning of each year, outlining how they intend to achieve their lending targets. My Department, in conjunction with the CRO, subsequently analyses the plan and meets the banks to discuss the content. The banks also meet with my Department and the CRO on a quarterly basis to discuss progress. The banks provide my Department and the CRO with monthly returns outlining their SME lending figures, broken down at a sectoral and regional level. The monthly management meetings with the pillar banks also provide a forum for the issue of SME lending to be raised by my Department.
I should stress however that the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions including with respect to pricing and lending decisions. These frameworks are published on my Department's website at http://banking.finance.gov.ie/presentations-and-latest-documents/.
31 Deputy Barry Cowen asked the Minister for Finance in the context of the proposed restructuring of Irish Life and Permanent, the future role he envisages for Permanent TSB and Irish Life in their respective markets; and if he will make a statement on the matter. [25587/12]
Agreement has now been reached with the Troika on a proposed future strategic direction for Permanent TSB and a formal Restructuring Plan is to be submitted to the European Commission by the end of June. The strategic plan will create a strong retail bank that is focused on lending into the Irish economy and will enhance competition and choice for consumers. The State acquisition of Irish Life is scheduled for completion by end June 2012. Irish Life is a strong and profitable company and is a valuable asset for the State. The business will continue to be managed on an independent commercial basis to ensure that value is maintained during the period of State ownership. The State will continue to work on the disposal of the business as soon as market conditions permit.
32 Deputy Aengus Ó Snodaigh asked the Minister for Finance the status of the Strategic Investment Bank as proposed in the Programme for Government; if there have been expressions of interest in investing in the bank; and when it is due to be established. [25627/12]
I assume that the Deputy is referring to the Strategic Investment Fund (SIF), the establishment of which was announced by the Government in September 2011. The SIF will channel commercial investment from the National Pensions Reserve Fund (NPRF) towards productive investment in the Irish economy. As well as money from the NPRF, the SIF will seek matching commercial investment from private investors and target investment in areas of strategic significance to the future of the Irish economy. I am informed by the National Treasury Management Agency, as Manager of the National Pensions Reserve Fund, that the NPRF announced in November 2011 a commitment of €250 million to a new Irish infrastructure investment fund which is seeking up to €1 billion from institutional investors in Ireland and overseas and which will invest in infrastructure assets in Ireland, including assets designated for disposal by the Government and commercial State enterprises and also new infrastructure projects. Marketing of this fund in Ireland by Irish Life Investment Managers and abroad by AMP Capital commenced in the first quarter of 2012. Normally the period from commencement of marketing of an investment fund targeting illiquid assets to closure of financial commitments by investors in such a fund can extend up to one year. In parallel, AMP Capital, the infrastructure manager of the fund, has commenced a process of building a pipeline of appropriate investment opportunities.
The NPRF has also committed €450 million to finance the national roll out of domestic water meters. In addition, the NPRF is actively supporting the development of the market for venture capital in Ireland through its continued participation in Innovation Fund Ireland in conjunction with Enterprise Ireland. On 15 March 2012, the Minister for Enterprise, Jobs and Innovation announced the commencement of the second call for expressions of interest from appropriately qualified international venture capital managers.
Further involvement of the NPRF in the SIF is expected to require the amendment of the investment policy of the NPRF, which is set out in the National Pensions Reserve Fund Act 2000. Officials of my Department are liaising with the National Treasury Management Agency, which is the Manager of the NPRF, in identifying and drafting the necessary amendments to the legislation and I expect to bring forward proposals for amending legislation as soon as possible once that work is completed.
33 Deputy Willie O’Dea asked the Minister for Finance if he has considered giving an exemption from the pension fund levy to defined benefit funds which are in severe deficit and are unlikely to be able to fulfil their obligations to members; and if he will make a statement on the matter. [25606/12]
The pension fund levy is a temporary stamp duty charge on the assets of pension funds which will be in place for 4 years in order to fund the Jobs Initiative introduced last year. There are very few exemptions from the levy and this, in part, explains why it was possible to introduce it at a relatively low rate of 0.6%. For example, the levy does not apply where the trustees of a scheme have passed a resolution to wind up the scheme and where the business in respect of which the scheme was established is insolvent. The payment of the levy is treated as a necessary expense of a pension scheme and the trustees or insurer, as appropriate, who are chargeable in respect of the levy have the option under the legislation to adjust current or prospective benefits payable under a scheme to take account of the levy. Where this option is taken the funding position of the scheme would not be impacted on foot of the levy. There may also be other options open to scheme trustees for dealing with the impact of the levy such that the funding position of the pension scheme would not be affected. However, should the option of reducing scheme benefits be taken, in no case may the reduction in an individual member's or class of member's benefits exceed the member's or class of member's share of the levy.
I have no plans to amend the pension fund levy arrangements in the manner suggested by the Deputy. However, in common with other tax measures, its operation will be reviewed by me in the context of next year's Budget and Finance Bill.
34 Deputy Caoimhghín Ó Caoláin asked the Minister for Finance the action that he has taken to make the National Asset Management Agency more cost efficient. [25629/12]
Under Section 18 of the NAMA Act the board of NAMA is charged with ensuring that NAMA performs effectively and furthermore, NAMA is required to account for its costs in its quarterly and annual reporting and is required under section 58 of the NAMA Act to account to a Dáil Committee on the economy and efficiency of its use of resources. NAMA incurred a heavy burden of cost in its first year arising predominantly from due diligence costs associated with the acquisition of loans and costs associated with the Agency's establishment.
The due diligence costs were required to be undertaken to ensure that loan valuations were in line with the valuation methodology approved by the EU Commission. It was important that the consideration paid by NAMA for its acquired loans was in line with EU approval and accordingly it was necessary to undertake detailed legal, property and loan due diligence to ensure that loan acquisition prices were fairly and rigorously determined. Costs were also incurred in creating a new organisation from scratch capable of meeting the complex challenges set for the Agency. These costs are not recurring.
I am satisfied that NAMA, which is now fully established and which has completed its loan acquisitions and valuations, is operating and delivering according to its statutory objectives in a cost effective and efficient manner.
It is also of note that by reference to the size of its loan portfolio, nominally €74 billion, NAMA's cost are at the lower end of the scale and compare favourably with similar entities in the private sector.
35 Deputy Gerry Adams asked the Minister for Finance the number of persons that have availed of section 14 of the 2012 Finance Act. [25649/12]
Section 14 of Finance Act 2012 introduced the Special Assignee Relief Programme which is designed to reduce the cost to employers of assigning key individuals in their companies from abroad to take up positions in the Irish based operations of their employer. Paragraph 10 of Section 14 provides that relevant employers must submit an annual return to the Revenue Commissioners detailing, inter alia, the number of employees and the amounts of exempt income claimed under the programme. This return will not be sought until after the end of the tax year in order to ensure that an accurate picture of take up levels over a full tax year can be provided. Therefore, given that 2012 is the first year of the programme, it will be 2013 before reliable statistics on its uptake will be available.
36 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has engaged with the banking or lending sectors with a view to determination of a strategy to deal with mortgage arrears and the working capital needs of small and medium sized enterprises; if the relevant lending sectors have engaged directly with their customers in this regard; if any indication has been given to him or his Department as to the most appropriate strategy to be followed; and if he will make a statement on the matter. [25652/12]
The Government is intensifying its efforts to address the mortgage arrears problem and a special temporary Government committee, chaired by An Taoiseach, is now meeting on a regular basis to prioritise this work agenda. Government is proceeding on the basis of the recommendations of the "Keane Report" which indicated that a blanket approach to debt forgiveness is not an appropriate or affordable response to the problem of significant mortgage difficulty. The Government's approach on mortgage arrears is to target assistance and relief to those mortgage holders who, through no fault of their own, are experiencing real and genuine difficulty in meeting their mortgage commitments and to assist those mortgage holders, as far as possible and appropriate, to remain in their home if desired. A number of measures are being advanced across a number of Departments to assist mortgage holders experiencing most difficulty including personal insolvency reform, the "mortgage to rent" initiative, direct engagement with mortgage lenders by the Central Bank as part of the Mortgage Arrears Resolution Strategy (MARS) process.
Personal insolvency reform is a central plank of the Government's overall agenda to tackle the mortgage arrears problem — while this work will take a little while longer that originally envisaged, due to the complex legal and drafting issues, it remains a legislative priority for Government and the intention is to publish the Bill before the end of June. The Minister for Justice, Equality and Defence also indicated that the strong intention is to commence second stage of the Bill before the Oireachtas summer recess.
As the Deputy is aware, the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the period 2011-2014. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013.
The Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. The pillar banks are required to submit their lending plans to the Department and the Credit Review Office (CRO) at the beginning of each year, outlining how they intend to achieve their lending targets. The banks also meet with the Department and the CRO on a quarterly basis to discuss progress. The banks provide my Department and the CRO with monthly returns outlining their SME lending figures, broken down at a sectoral and regional level. The monthly management meetings with the pillar banks also provide a forum for the issue of SME lending to be raised by my Department. I should stress however that the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions including with respect to pricing and lending decisions. These frameworks are published on my Department's website at http://banking.finance.gov.ie/presentations-and-latest-documents/.
It is vital that the banks continue to make credit available to support economic recovery. However, it is not in the interest of the banks, businesses or the economy for finance to be provided unless the business is viable and has the capacity to meet the interest payments and repay the sum borrowed.
37 Deputy Brian Stanley asked the Minister for Finance the steps that will be taken to provide and protect banking infrastructure in rural and disadvantaged areas following downsizing by the banks. [25647/12]
While I regret the closure of any bank branches, the Deputy will no doubt appreciate that the provision of services by banks, including the location of branches, is a commercial decision for the banks. The Deputy might wish to note that there is a provision in the Central Bank's Consumer Protection Code which imposes certain obligations on banks which have decided to close, merge or move a branch in a given location. The relevant provision states: Where a credit institution plans to close, merge or move a branch, it must notify the Central Bank immediately and provide at least two months notice to affected consumers to enable them to make alternative arrangements. The credit institution must ensure all business of the branch is properly completed prior to the closure, merger or move, or alternatively inform the consumer of how continuity of service will be provided. The wider community must be informed, in advance, through notification in the local press.
The advance notification requirement is designed to give existing consumers the necessary time to choose another credit institution. On the issue more generally, credit unions provide important financial services to members in rural and disadvantaged areas. The Government established the Commission on Credit Unions on 31 May 2011 to review the future of the credit union movement and make recommendations in relation to the most effective regulatory structure for credit union. The Commission presented its report to me on 31 March 2012 and published it on 18 April 2012.
The Commission recognised the important role that credit unions can play in promoting financial inclusion and engaging in social lending to members from disadvantaged backgrounds. The Report stated that the provision of basic payment accounts could be a good strategic fit for credit unions given their community roots and not-for-profit ethos and recommends that credit unions take a more prominent role in developing and maintaining social lending and social finance schemes.
A report setting out a Strategy for Financial Inclusion was published on my Department's website in June 2011. The main operational recommendation from the report was the proposed introduction of a "basic payment account". An implementation group, which is chaired by my Department, has been established to manage the implementation process and a basic payment account is expected to be rolled out in June 2012 on a pilot basis in three locations in the State. Following an analysis of the outcome of the pilot, it is expected that the basic payment account will be rolled out nationally in 2013.
It was noted in the Strategy for Financial Inclusion report that the post office network has the potential to play a key role in the delivery of basic payment accounts. However the delivery of a basic payment account by the post office network is contingent on suitable systems, operational, commercial and governance arrangements being in place to facilitate such a process. I am advised that this is one of the many issues which will be considered in the context of the pilot programme.
38 Deputy Pearse Doherty asked the Minister for Finance if he will provide an update on discussions at a European level regarding the Spanish banking crisis. [25625/12]
Finance Ministers are regularly updated on developments in Members States, including at the Eurogroup and Ecofin meetings. In this context, I would point out that the Spanish authorities are keeping their colleagues at EU level informed of developments. It is commonly acknowledged that the Spanish banking system as a whole remains vulnerable to market tensions given its exposure to problematic real estate and construction assets, the weak economic outlook and large refinancing needs. On the basis of their assessments, a number of rating agencies have recently downgraded the credit ratings of several Spanish banks.
It is fair to say that the Spanish authorities have taken a number of positive steps to address market concerns regarding the financial sector. For instance, an independent audit of banks will be undertaken in order to boost transparency and definitively address doubts about the valuation of bank assets. In addition, banks are being obliged to set aside additional capital to cover potential losses on the riskiest assets. While the Spanish authorities have taken a number of positive measures to address the situation it will take time to deliver the necessary results. Uncertainty is likely in the interim period, which may be reflected in elevated market tension.
39 Deputy Sean Fleming asked the Minister for Finance his views on the best use for the State of the remaining funds in the discretionary portfolio of the National Pension Reserve Fund; and if he will make a statement on the matter. [25591/12]
The Government is committed to ensuring a continuing level of investment in Ireland in the interests of boosting economic activity and generating employment. It believes that the National Pensions Reserve Fund (NPRF) can make a significant contribution to that objective through its involvement in the Strategic Investment Fund and through investment opportunities in Ireland such as the new Irish infrastructure investment fund, as well as through commercial investment in projects in this country, such as the €450 million the Fund has committed to finance the national roll out of domestic water meters, and the Fund's continuing participation in Innovation Fund Ireland.
The resulting greater concentration of investment in Ireland on the part of the NPRF is expected to require the amendment of the NPRF's investment policy, which is set out in the National Pensions Reserve Fund Act 2000. Officials of my Department are liaising with the National Treasury Management Agency, as the Manager of the NPRF, in identifying and drafting the necessary amendments to the legislation and I expect to bring forward proposals for amending legislation as soon as possible once that work is completed. It should be noted that the funds in the Discretionary Portfolio are not all readily accessible. The NPRF Commission has legally committed €1.2 billion to various fund investments, of which over €800 million is for investment in Ireland. The €800 million includes a commitment to provide funding on a commercial basis for the roll-out of the water metering programme subject to certain pre-conditions.
The establishment of the Strategic Investment Fund (SIF) was announced by the Government in September 2011. The SIF will channel commercial investment from the National Pensions Reserve Fund towards productive investment in the Irish economy. As well as money from the NPRF, the Fund will seek matching commercial investment from private investors and target investment in areas of strategic significance to the future of the Irish economy. It will comprise a series of sub-funds targeted at commercial investment in critical areas of the Irish economy, including infrastructure, venture capital and provision of long-term capital for SMEs. The NPRF will take a lead role in the development and implementation of each sub-fund.
40 Deputy John McGuinness asked the Minister for Finance his views on whether domestic banks are responding adequately to the demand for credit from first-time house buyers; and if he will make a statement on the matter. [25599/12]
The Deputy will appreciate that the decision on whether or not to grant individual mortgages must remain a commercial decision for individual lending institutions. It is important that each lending institution is allowed to assess properly and independently the individual risks that it is considering accepting in granting mortgage finance. It is in the general interest that mortgage lending must be undertaken on a sustainable and prudential basis by financial institutions and conform fully with regulatory requirements both in relation to the financial institution itself and also the safeguarding of the consumer's interests. I should also stress that the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions including with respect to pricing and lending decisions. These frameworks are published on my Department's website at http://banking.finance.gov.ie/presentations-and-latest-documents/.
41 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which budgetary expectations continue to be met and are in line with targets anticipated in the course of discussions with the troika; if he will further indicate whether the fiscal and economic performance here compares reasonably well with other countries in the Eurozone; the extent, if any, to which the present trend is likely to be affected negatively or positively by the outcome of the forthcoming referendum on the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union; and if he will make a statement on the matter. [25651/12]
To date, Ireland has completed six successful quarterly reviews with the Troika, the most recent review mission taking place last month. Last year, Ireland comfortably met all fiscal targets agreed under the Programme, including all cumulative end-quarter Exchequer primary balance and Central Government net debt targets as well as the annual General Government deficit target. Reviews to date have been viewed positively by the Troika. This year, although there are a number of pressure points, I am confident, based on fiscal data for the first four months of the year, that we can adhere to the 8.6% of GDP General Government deficit target based on the Budget day measures.
The European Commission recently released its Spring 2012 European Economic Forecast. It showed that while Ireland's GDP growth of 0.7% in 2011 was lower than the 1.5% growth recorded in the Eurozone as a whole, the situation will be reversed in 2012, with Ireland again projected to post growth albeit modest, while Eurozone GDP is forecast to fall by 0.3%. In terms of budgetary indicators, while Ireland's underlying deficit of 9.4% of GDP in 2011 was well above the Eurozone equivalent, it fell by 1.5% of GDP last year and was well within the limit set by the ECOFIN Council in December 2010. It is also projected to decrease markedly over the coming years.
It is my view that any development that enhances certainty and stability for the Irish economy is to be welcomed. In this regard a positive outcome of the forthcoming referendum will, I believe give confidence to international investors who continue to invest heavily in the Irish economy as evidenced by the FDI announcements already this year. Our firm commitment is to deliver employment opportunities for the Irish people and in order to deliver this, Government needs to enhance our budgetary framework and promote the right climate for business to prosper. Similarly, I believe our return to the international sovereign debt markets will be aided by increased certainty and security that a positive outcome in the upcoming referendum will deliver.
42 Deputy Jonathan O’Brien asked the Minister for Finance if he is satisfied with the situation that sees Permanent TSB, a State-owned bank, still charging a standard variable rate for mortgages which is higher than other banks’ rates. [25646/12]
As has been stated previously, I have no role in the day-to-day commercial and operational decisions, which include these matters. Ultimately, the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of IL&P, having due regard to their customers and the impact on profitability. Notwithstanding the fact that the State is a significant shareholder in IL&P, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. Relationship Frameworks have now been specified that clearly define the nature of the relationship between me and each of the covered institutions. Those Frameworks were published on 30 March 2012 and can be found at: http://banking.finance.gov.ie/presentations-and-latest-documents/. It should be noted however that PTSB recently announced a 0.5pc reduction in its standard variable rate for residential mortgage customer effective from 14 May 2011 and it now stands at 4.69% bringing the rate more in line with those charged by other institutions in the Irish mortgage market.
43 Deputy Martin Ferris asked the Minister for Finance the number of targets set out in the original Memorandum of Understanding signed in December 2010 that have been fully met; the number of targets to date that have been deferred; and the number of targets that have been missed. [25639/12]
The original Memorandum of Understanding (MoU) has been updated considerably since it was signed in December 2010. It was first updated following the combined first and second reviews in April 2011, and it has been updated after each subsequent quarterly review. Each update to the MoU can include the continuation of, or revisions to, existing commitments along with new commitments. Taking this into account, the relevant commitments are those due for the fourth quarter of 2010 and the first quarter of 2011 amounting to 19 in total. Of these, all commitments were met with one exception. In the case of bank recapitalisation, the commitment was to complete this by end February 2011. However, the then Minister for Finance, the late Mr Brian Lenihan T.D., decided that, as the general election had been called, it would be inappropriate to implement the condition at that time, and it was accordingly deferred with the agreement of the Troika. The bank recapitalisation was completed, following a rigorous PCAR stress test, by July 2011, at a cost considerably below that initially envisaged.
The amendments of the MoU following the combined 1st and 2nd review, included changes to take account of the newly elected Government's policy priorities. Among the changes made were the reversal of the cut to the minimum wage, agreement on the Jobs Initiative, the end of transfers of sub €20 million loans to NAMA. In addition, the commitments in respect of fiscal consolidation for 2012 and 2013 were also amended to take account of Government priorities. As the Deputy will be aware, our programme implementation record has been strong. We have met all of our commitments to date on time, amounting to over 100 actions, including the deferred banking recapitalisation target.
44 Deputy Brendan Griffin asked the Minister for Finance his views on the way his Department can prevent lost State revenue through the illicit tobacco trade; and if he will make a statement on the matter. [25416/12]
The illegal smuggling of cigarettes and other tobacco products and the illicit selling of these products is a problem for many tax jurisdictions throughout the world. Ireland has a longstanding policy, primarily because of health concerns and also for budgetary reasons, of high tobacco taxation, and this makes this State a particularly attractive market for tobacco smugglers. Easy access to Ireland via cheap flights from countries with significantly lower tobacco taxes accentuates the attractiveness of Ireland for criminals involved in the illegal importation and sale of tobacco.
The Revenue Commissioners are responsible for the collection of tobacco products tax, and for tackling the illicit trade in cigarettes and tobacco products. They attach a high priority to this area, and they continuously review their response to the problem and their effectiveness in tackling the illicit tobacco trade. The strategy employed by Revenue to tackle the illicit tobacco products trade is multi-faceted. It includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, development of analytics and detection technologies, and optimum deployment of resources at point of importation and inland, in order to intercept the contraband product and to prosecute those involved.
Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages. Revenue enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. Since mid-2010, Revenue has conducted a series of nationwide intensive tobacco "blitz"-type operations, concentrating additional Revenue resources at ports, airports and at selected inland retail points, including markets, for the purpose of identifying and seizing illicit tobacco products. To date, Revenue has conducted ten such national tobacco "blitz" operations resulting in the seizure of over 35.2m cigarettes and 1,790 kgs of tobacco. These intensive operations are of course additional to Revenue's ongoing day-to-day operations targeting illicit tobacco product.
Revenue also carries out regular multi-agency operations, particularly in relation to large maritime importations. Revenue both provides and receives intelligence from other Customs Administrations and works closely with the European Anti-Fraud Office, OLAF, in its efforts to tackle the illicit sale of tobacco at an international level. This international cooperation and sharing of intelligence and expertise plays an important role in combating illegal tobacco smuggling on a global level.
In 2011, a total of 109m cigarettes with a retail value of €46m and 11,158 kgs of tobacco with a retail value of €4m were seized by Revenue. In addition to this Revenue has obtained one hundred and one convictions relating to cigarette smuggling, with fines of €136,300 imposed and thirty custodial sentences, of which twenty were suspended. There were a further fifty-seven convictions relating to the sale of unstamped tobacco products with fines of €115,850 imposed and thirteen custodial sentences of which seven were suspended.
In 2012 to date a total of 50m cigarettes with a retail value of €22m and 1,835 kgs of tobacco with a retail value of €0.7m have been seized by Revenue. In addition to this Revenue has obtained twenty-eight convictions relating to cigarette smuggling, with fines of €47,250 imposed and twelve custodial sentences, of which four were suspended. There were a further thirty-one convictions relating to the sale of unstamped tobacco products with fines of €66,100 imposed and six custodial sentences of which six were suspended.
45 Deputy Robert Troy asked the Minister for Finance his views on the establishment of a pan European banking regulator that would supersede national authorities across the EU; and if he will make a statement on the matter. [25585/12]
Following the publication of the De Larosière Report (2009), a new supervisory architecture for financial services in the European Union came into operation from January 1st 2011, namely the European Systemic Risk Board and three European Supervisory Authorities. The European Systemic Risk Board (ESRB) is designed to put a regime in place to monitor and assess risks to the stability of the financial system as a whole ("macro-prudential supervision"). The ESRB will provide early warning of systemic risks that may be building up and, where necessary, recommendations for action to deal with these risks. To achieve its role the ESRB will have the power to issue non-binding recommendations and warnings to Member States (including the national supervisors) and to the European Supervisory Authorities. It will receive secretarial and technical support from the ECB.
Three new European Supervisory Authorities (ESAs) have been established dealing with the banking (European Banking Authority), insurance and pensions (European Insurance and Occupational Pensions Authority) and securities (European Securities and Markets Authority) sectors. The new Authorities took over the roles of the three committees of Supervisors (CEBS, CEIOPS and CSER).
These new Authorities will play a key role in ensuring that there is better co-ordination between supervisors in situations where a financial institution might be operating on a cross-border basis within the EU. They will also be required to ensure that EU financial services'legislation is being implemented in a more uniform manner across Member States and, in that regard, will develop a single rule-book to ensure a more harmonised approach by supervisors.
When these bodies were established, it was proposed that the European Parliament and the Council would examine the Regulation establishing the ESRB, following a report from the Commission, and shall determine whether the mission and organisation of the ESRB need to be reviewed by 17 December 2013.
Similarly, in relation to the three European Supervisory Authorities, the European Commission shall publish a general report on the experience acquired as a result of the operation of the Authorities by 2 January 2014.
It would be premature to comment on the need for further regulatory amendments at this stage in advance of these reviews.
46 Deputy Colm Keaveney asked the Minister for Finance if he will consider an amendment (details supplied) to the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010; and if he will work with the Department of Social Protection to advance such an amendment. [25413/12]
The position is that any future changes to the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 will be the responsibility of the Minister for Justice and Equality. The basis for the current tax treatment of married couples derives from the Supreme Court decision in Murphy v the Attorney General (1980) which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together and having the same income.
The treatment of cohabiting couples for the purposes of social welfare is based on the principle that married couples should not be treated less favourably under the social welfare code than cohabiting couples. This was given a constitutional underpinning following the Supreme Court decision in Hyland v Minister for Social Welfare (1989) which ruled that it was unconstitutional for the income a married couple received in social welfare benefits to be less than the couple would have received in such benefits if they were unmarried and cohabiting.
The Taxes Consolidation Act 1997 provides for the granting of tax credits based on the civil status of the claimant. A person who is single is entitled to a basic personal credit of €1,650 and this is doubled to €3,300 for a married couple or civil partners who are jointly assessed. Should the couple choose separate treatment or single assessment, each individual is entitled to a personal credit of €1,650. A cohabiting couple where both partners are working also get, in total, the same tax credits as a married couple or couple in a civil partnership (i.e. €3,300).
Married couples or civil partners can transfer tax credits and tax bands between the individuals, and this is of benefit where one of the individuals earns less that the 20% tax threshold of €32,800 or where one of the individuals has no income.
However, cohabitants are treated as separate and unconnected individuals for the purpose of income tax and, accordingly, credits, tax bands and reliefs cannot be transferred from one partner to the other.
48 Deputy Peadar Tóibín asked the Minister for Finance if he will provide an update on the operations of the Irish Bank Resolution Corporation; the timeline for the IBRC to be wound down; and if he will confirm that the IBRC is not taking on further roles including the transfer of tracker mortgages from other banks. [25637/12]
As the Deputy is aware the bank reports its progress twice a year in the public domain by way of its Interim and Annual Report and Accounts. The most recent Annual Report and Accounts for 2011 were released at the end of March 2012. This provides the most up to date information on the operations of IBRC and a copy of this is available on the Bank's website or through its Corporate Affairs function. The bank continues to work towards wind down by 2020 as agreed in the EC Restructuring and work out Plan for Anglo Irish Bank Corporation Limited and Irish Nationwide Building Society. The bank is currently ahead of target in the work out plan. The Deputy is also aware the Government is committed to reviewing the arrangements that were put in place to capitalise IBRC. The purpose of this review is to determine if there is a way to reduce the overall cost to the State. Part of the capitalisation of IBRC was provided using promissory notes as consideration. The Troika has agreed to engage in this process to produce a common paper which will consider all options for restructuring the notes in terms of the source of funding, the duration of the notes, the interest rate etc.
In addition to the possible re-engineering of the promissory notes, as part of the technical discussions we are looking at potential improvements for the banking sector. However, it is too early to make any assessment as to what if any improvements/solutions might arise from these discussions.
49 Deputy Michael Colreavy asked the Minister for Finance if he will provide an update on the joint technical paper on the promissory note; and if the paper is completed and when same will be published. [25644/12]
As the Deputy is aware the Government is committed to reviewing the arrangements that were put in place to capitalise IBRC. The purpose of this review is to determine if there is a way to reduce the overall cost to the State. Part of the capitalisation of IBRC was provided using promissory notes as consideration. The Troika has agreed to engage in this process to produce a common paper which will consider all options for restructuring the notes in terms of the source of funding, the duration of the notes, the interest rate etc. While the development in relation to the end March Promissory Note payment is a positive development we must keep our eye on the greater benefits which would derive from the re-engineering of the promissory note and also the potential improvements for the banking sector which could also stem from the ongoing technical discussions. Further it should be borne in mind that recent concerns in the Eurozone underpin the fact our problems are part of a wider European dilemma and to the need for solutions to address the Irish situation as part of an overall Eurozone/global solution.
It is for these reasons that we must look at the recent developments in relation to the Promissory Note repayment as an initial step to facilitate a project where, if we are successful, it will be in the medium term rather than immediately. These discussions will continue and the Government is focused on developing an alternative solution to the promissory note arrangement in IBRC. The ongoing discussions may also explore options to refinance the long term Government bond issued in settlement of the March 31 payment. We all want to arrive at a successful conclusion that is in the interests of Ireland and the EU. A decision in relation to the publication of the technical paper will be made once the paper is completed and subject to normal commercial sensitivities.
50 Deputy Thomas P. Broughan asked the Minister for Finance the proposals he is putting to his EU colleagues in the context of a prospective EU stimulus package; and if he will make a statement on the matter. [25622/12]
I meet with my EU and euro area colleagues on a regular basis, where we exchange views on a range of issues, including the need to boost growth in Europe. My view is that measures to boost economic growth can play an important role in addressing the current crisis in the EU. Indeed I would point out that the Taoiseach has consistently sought to have growth moved up the European agenda, and I note that this evening the EU Heads of State or Government will have an informal exchange of views on how to boost growth in Europe in advance of the formal European Council meeting in June. It is also worth noting that implementing policies to boost growth in the euro area is one of the key parts of the ‘five-point strategy' to tackle the crisis agreed by the euro area Heads of State or Government last October. My view is that there are a number of ways in which growth rates could be raised in the EU. For instance, implementing structural reforms can have a positive effect in terms of boosting the rate of growth in many Member States and I believe that pursuing such policies within the EU is essential.
In addition, there are calls in some quarters for fiscal measures to stimulate growth in the short term. A number of considerations arise in this regard. For instance, I would point out that fiscal sustainability and measures to promote economic growth are not necessarily incompatible. At the same time, for those Member States subject to market pressures, it is clear that these have little, if any, room for budgetary manoeuvre. It goes without saying, however, that consolidation in these Member States should be pursued in a manner which is as growth-friendly as possible.
It is also important to bear in mind that additional public sector borrowing designed to stimulate the economy in the short-term could increase public indebtedness. This may well act as a restraint on medium term economic growth, thus having a counter-productive impact.
Having said this, I should also mention that it is open to Member States to access funds from the European Investment Bank for infrastructure needs and other investment spending that will boost growth. The Bank has been a valuable source of finance for Ireland for PPPs, the commercial semi-state sector and SMEs in particular. I might add that the Minister for Public Expenditure and Reform and myself met senior officials of the Bank last week to discuss the current pipeline of projects and explore other possibilities for accessing funds. Finally, I believe there is scope to ensure that EU structural funds are better focussed on competitiveness, growth and jobs.
51 Deputy Pádraig Mac Lochlainn asked the Minister for Finance his views on whether Irish banks have sufficient staff numbers with the skills necessary to deal with impaired and loans of deteriorating quality. [25635/12]
I have received the following information from the Irish banks:
AIB
AIB is currently managing its impaired loans and loans of deteriorating quality and is further developing its dedicated resources in this regard. At the end of Q1 2012 in the mortgage area, AIB had approximately 200 staff in the "Dedicated Arrears Support Unit" and expect to double that number this year. A recent contract with Certus will also support customers in difficulty. In the SME area, AIB currently has approximately 1,000 staff dedicated to working with customers in difficulty and expect this to increase further in 2012.
Bank of Ireland
SME Banking
Staff Numbers:
In recognition of the deteriorating market conditions, in 2009 Bank of Ireland restructured its Irish Business Banking units and established specific Challenged Teams to focus on managing challenged SME loans.
A separate strategy and operating structure is in place to manage customers of the Bank's Irish Business Banking units with impaired loans or loans of deteriorating quality.
Staff members working with Challenged portfolios are responsible for a small portfolio of clients and are the dedicated contact point for customers of these units.
For those in the Challenged Teams, a specific induction programme is provided as well as ongoing training to seek to equip staff members with the key skills required.
The Bank recently completed a review of Challenged resource requirements and filled a number of new roles both in the Branch Network and Head Office. Resource and training requirements remain under regular and ongoing review.
Mortgages
Bank of Ireland has a comprehensive Mortgage Arrears Resolution Strategy (MARS) which is subject to ongoing enhancement to take account of the continuing challenge of mortgage arrears in its Irish Mortgage businesses.
The strategy incorporates a clear objective to ensure that the Bank has sufficient resources including staff with the required skills to manage and support customers of its Irish Mortgage businesses who are currently facing difficulties in meeting their mortgage repayments.
The Bank currently has approximately 500 staff engaged in dealing with customers in its Irish Mortgage businesses in mortgage arrears. Resource requirements continue to remain under review to ensure that sufficient staff resources are available to support our customers.
The Bank has a centralised Arrears Support Unit (ASU) that manages customers of its Irish Mortgage businesses who are currently facing difficulties with their mortgages. Additionally the Bank has people trained and available to each branch in Ireland capable of supporting customers as well as dedicated regionally based mobile teams who can meet with and support customers through the evaluation and assessment of the customer's financial position.
Staff engaging with customers in Mortgage Arrears receive initial and on-going training to try to ensure they have the necessary business, risk and people skills required to successfully discharge their responsibilities. Specific training has been developed to support this objective.
The Bank has and will continue to utilise external experts to provide their advice, expertise and support to complement the Bank's skills and resources.
Resources, training and capabilities in all of the Bank's businesses including those dealing with the customers of its Irish Mortgage businesses are under ongoing review.
IBRC
The IBRC Mortgage Arrears Support Unit currently comprises a team of 30 members of staff dedicated to dealing with 4921 mortgage accounts and those customers experiencing repayment difficulties.
In addition, IBRC has 290 dedicated front office staff dealing with the recovery of commercial loans. These dedicated staff members are supported by administrative, credit, legal and other functions also involved in the recovery process. This number is separate to those staff working in the Bank's dedicated NAMA Unit.
IBRC is continually working to improve the skills, experience and productivity of the Arrears Support Team.
PTSB
PTSB is making significant investment in the area of arrears management. They are working to build best-in-class arrears management expertise with a focus on three key areas: (i) Improving resolution strategies; (ii) Building operational capability; (iii) Building an effective Credit Risk function. The extent of the work to be delivered will range from hiring and training of 100 new staff, training of 300 existing staff and a significant investment in new technologies. The work will also review policies, strategies and processes and introduce improved quality and compliance oversight.
I should stress however that the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or theirmanagement decisions. These frameworks are published on my Department's website at http://banking.finance.gov.ie/presentations-and-latest-documents/.
52 Deputy Mick Wallace asked the Minister for Finance his views on the fact that in year one the domestic banks are close to or have already reached the expected mortgage losses figure set out by the Central Bank of Ireland in last year’s stress test for the period 2011 to 2013; and if he will make a statement on the matter. [25653/12]
The Central Bank has informed me that their independent loan loss exercise, conducted by BlackRock Solutions ("BRS"), as part of the Financial Measures Programme 2011 ("FMP") and the Prudential Capital Assessment Review ("PCAR") was used to inform the capital requirements of the PCAR banks. The loan losses assumed by BRS were on the basis of nominal expected losses which banks might incur under base and adverse macro-economic scenarios over a three year horizon and assumed significant levels of collateral repossession. However, loan loss provisions recognised in the financial statements of the banks are based on the incurred loss approach (actual loss outcomes based on accounting rules) rather than on an expected loss approach. The Central Bank published in December 2011 new Impairment Provisioning and Disclosure guidelines which required the Covered Institutions to:
1. Recognise their incurred loan losses as early as possible within the context of International Financial Reporting Standards ("IFRS");
2. Adopt a more conservative approach to the measurement of impairment provisions across all loan portfolios; and
3. Significantly improve the number and granularity of their asset quality and credit risk management disclosures which will enhance users understanding of their asset quality profiles and credit risk management practices.
The Central Bank considers that the level of loan loss provisions at end-2011 is a result of both increasing arrears and the more conservative approach to impairment provisioning which has resulted in a front-loading of provisions. Notwithstanding the additional and significant provisions recognised in 2011 financial statements, loan arrears on aggregate remain within the PCAR 2011 stress case parameters.
The Central Bank continues to monitor arrears levels, impairment provisions and capital adequacy as well as implementing a number of arrears related work-streams.
53 Deputy Sandra McLellan asked the Minister for Finance his plans in the immediate future to sell parts of the AIB back to the private sector; and the amount that he would look to sell. [25633/12]
At present, AIB is undergoing a significant restructuring process and as one of the two pillar banks in the domestic economy it is natural that investors will seek to have preliminary discussions with both the bank and the State in order to better understand the underlying performance and value of the AIB franchise. The 2011 transaction completed by the State with private investors in Bank of Ireland demonstrates that international money managers remain optimistic over the outlook for the Irish economy. As and when any concrete interest is expressed by external investors in making an investment in AIB it will be carefully evaluated by my staff and the bank to ensure that taxpayers' interests are protected at all times.
54 Deputy Michael Colreavy asked the Minister for Finance if he will provide an update on the promissory note; the timeline of the transfer of the Government bond from National Asset Management Agency to the Bank of Ireland; the date of the planned Bank of Ireland EGM; and the process that will be undertaken if the Bank of Ireland board refuses to endorse the procedure that he has planned. [25643/12]
As the deputy is aware, Bank of Ireland (the "Bank") announced on 29 March 2012 that the Bank had reached a conditional agreement to conduct a securities repurchase transaction with IBRC. The Bank stated: “As the transaction is considered to be a related party transaction under Listing Rules, it is subject to independent stockholder approval. A circular containing additional details of the transaction and the date of the proposed Extraordinary General Court will be posted to stockholders once the circular has been approved by the UK Listing Authority and Irish Stock Exchange. It is anticipated that the transaction will become effective following satisfaction of all pre-conditions and independent stockholder approval.”
This is a commercial transaction between the Bank and IBRC. The Bank has stated in their announcement on 29 March 2012 that they will issue a circular and schedule and Extraordinary General Court (the "EGC") in due course.
As stated by the Bank on 29th March, the Bank has reached a conditional agreement to conduct a securities repurchase transaction with IBRC. However as already stated the transaction is subject to stockholder approval.
55 Deputy Robert Troy asked the Minister for Finance if he is satisfied that the projected worst case scenario of losses in the Prudential Capital Assessment Review 2011 for the covered banks of €9 bn on their mortgage books over the period 2011 to 2013 will not arise; and if he will make a statement on the matter. [25582/12]
The solvency stress test applied by the Central Bank of Ireland in 2011 was used to recapitalise the PCAR banks. Having consulted with the Central Bank, I can inform the Deputy that the stress test scenarios were designed to represent extreme but plausible events, but they were not forecasts. The macroeconomic environment deteriorated in 2011 and as a result arrears levels and loan loss provisioning has increased. As the realised scenario in 2011 was within the bounds considered for the purposes of recapitalising the banks in 2011, I am currently of the view that the banks are adequately capitalised.
The level of loan loss provisions at end-2011 is a result of both increasing arrears and the more conservative approach to impairment provisioning which has resulted in a front-loading of provisions. Notwithstanding the additional and significant provisions recognised in 2011 financial statements, loan arrears on aggregate remain within the PCAR 2011 stress case parameters.
The Central Bank continues to monitor arrears levels, impairment provisions and capital adequacy as well as implementing a number of arrears related work-streams. Additionally, the Government undertakes intensive efforts to address the mortgage arrears problem and has established a special Cabinet sub-committee to be chaired by the Taoiseach. The Government is committed to assisting those who genuinely cannot pay their mortgage through carefully targeted measures.
56 Deputy John Halligan asked the Minister for Finance the impact that the recent downgrading of growth projections for the Irish and European economies are likely to have in terms of the fiscal adjustments required to meet Ireland’s deficit targets for the years 2013, 2014 and 2015; and if he will make a statement on the matter. [25659/12]
58 Deputy Joan Collins asked the Minister for Finance the impact that the recent downgrading of growth projections for the Irish and European economies are likely to have in terms of the fiscal adjustments required to meet Ireland’s deficit targets for the years 2013, 2014 and 2015; and if he will make a statement on the matter. [25661/12]
61 Deputy Richard Boyd Barrett asked the Minister for Finance the impact that the recent downgrading of growth projections for the Irish and European economies are likely to have in terms of the fiscal adjustments required to meet Ireland’s deficit targets for the years 2013, 2014 and 2015; and if he will make a statement on the matter. [25655/12]
89 Deputy Bernard J. Durkan asked the Minister for Finance if he continues to be satisfied that the targets identified in the contexts of Budget 2012 can be reached notwithstanding less than anticipated economic growth rates; and if he will make a statement on the matter. [25942/12]
I propose to take Questions Nos. 56, 58, 61 and 89 together.
Projected economic growth rates for Ireland were revised downwards in the recent Stability Programme Update (SPU) predominantly with regard to this year but also marginally in respect of next year. Other Member States have also been subject to downward revisions to their forecast growth rates in the recent EU Commission's Spring forecasts and this has been accounted for in the assumptions underpinning Ireland's recent SPU.
The end-April Exchequer Returns illustrate that tax revenues were €370 million (3.5%) ahead of profile with income tax, VAT and Corporation tax all performing solidly. This demonstrates the robustness of the Budget day forecasts and gives me confidence that we are on course to meet our targets. We must bear in mind, however, that we have only four months Exchequer data to hand and there are large tax revenue targets to meet over the course of the year, including for May.
While total net-voted expenditure was 2% ahead of target in the first four months of the year with spending pressures evident in the areas of Health and Social Protection, my colleague, the Minister for Public Expenditure and Reform impressed upon all his Cabinet colleagues the importance of actively managing spending within agreed limits. This is essential if budgetary targets, both on an Exchequer and General Government basis, are to be achieved.
Overall at this point, I am confident that our fiscal targets can continue to be met. The projections set out in the SPU, which are consistent with the consolidation amounts set out in the Medium-Term Fiscal Statement and Budget 2012, envisage that all fiscal targets will be met over the forecast horizon.
However, I must stress that the perennial risks associated with economic and budgetary forecasting apply and particularly so in such uncertain economic and financial circumstances. As ever, my Department will maintain a close eye on emerging economic and budgetary developments as the year progresses and will keep me informed in that regard.
57 Deputy Noel Harrington asked the Minister for Finance if he will extend the rebate on carbon tax element of fuel costs for the fishing sector to the agricultural and transport sectors; and if he will make a statement on the matter. [25657/12]
As required under the Directive 2003/96/EC, a full relief from Mineral Oil Tax, including the carbon charge component of the tax, applies to oil used for sea navigation, including sea fishing. In the Finance Act 2012, I introduced a deduction in respect of the carbon charge component of the Mineral Oil Tax on marked diesel used by farmers in the course of their farming trade. Under this measure, farmers are allowed a deduction in computing their farming profits or losses, for the amount of additional carbon charge that they incur on purchases of marked diesel, following the increase in the rate of tax on certain fuels from 1 May 2012. This new deduction is in addition to the existing deduction for Mineral Oil Tax included in the cost of marked diesel used in the course of the farming trade. The Deputy may be aware that a working group was set up between officials of my Department, the IRHA and members of the Oireachtas. This working group is discussing a number of issues of concern to the haulage industry. Among the issues examined by the group is an essential user's rebate system. I should point out that a fuel rebate system, as sought by the IRHA, could not under EU law be restricted to Irish licensed hauliers but would have to be extended to all vehicles intended exclusively for the carriage of goods by road with a maximum permissible gross laden weight of not less than 7.5 tonnes. In addition, the rebate would have to include the carriage of passengers by a motor vehicle of category M2 or category M3 as defined in Council Directive 70/156/EEC .
59 Deputy Patrick Nulty asked the Minister for Finance the potential yield from the introduction of a new third rate of income tax of 48% for those earning more than €80,000 per annum; if he will consider the introduction of such a tax; and if he will make a statement on the matter. [25412/12]
It is assumed that the threshold for the proposed new tax band mentioned by the Deputy would not alter the existing standard rate band structure applying to single and widowed persons, to lone parents and married couples. I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2012 incomes, of the introduction of a new 48% rate would be of the order of €490 million. However, given the current band structures, major issues would need to be resolved as to how in practice such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners. This figure is an estimate from the Revenue tax-forecasting model using latest actual data for the year 2009, adjusted as necessary for income and employment trends for the year 2012. It is, therefore, provisional and subject to revision.
It is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.
60 Deputy Brian Stanley asked the Minister for Finance the pre-emptive and proactive measures he is putting in place, along with other Government Departments, to prepare for the numbers of staff to be let go in the banks, particularly the expected 2,500 job losses in AIB. [25648/12]
It is deeply regrettable, for all concerned, that the proposed action of shedding of jobs, even on a voluntary basis in these challenging economic times, at Allied Irish Banks and Bank of Ireland as announced, has had to be taken. This is an inevitable consequence of the necessary restructuring of the banking system to render it fit to better serve personal and business customers throughout the economy. As for any group of workers whose positions are being made redundant, the services of the State — through employment supports, sourcing job opportunities (for example the promotion of jobs at the IFSC), education and training interventions, social welfare services (for example income maintenance and money advice), etc — will be made available to complement any assistance being provided by the employer. The exact nature of that support will be dictated by the particular circumstances of the departures, geographic considerations and timing.
62 Deputy Mick Wallace asked the Minister for Finance his views on the ability of the banks to generate their own capital after 2013 in view of the fact that last year’s stress tests assumed a quicker path to economic recovery; and if he will make a statement on the matter. [25654/12]
The Central Bank has informed me that the solvency stress test applied by the Central Bank of Ireland in 2011 was used to recapitalise the PCAR banks. The stress test scenarios were designed to represent extreme but plausible events, but they were not forecasts. Indeed, the scenarios included allowances for operating profit before impairments. These allowances took into account expected operating income and expenditure and were reflective of the macro-scenarios. Whilst the PCAR was based on a three year horizon, capital buffers were also included for amongst other things, post-2013 capital requirements, including for example additional loan losses not absorbed by reserves that will be generated in the financial year's post-2013.
The macroeconomic environment deteriorated in 2011 and as a result, arrears levels and loan loss provisioning has increased. As the realised scenario in 2011 was within the bounds considered for the purposes of recapitalising the banks in 2011, the Central Bank is currently of the view that the banks are adequately capitalised.
63 Deputy Dessie Ellis asked the Minister for Finance the names of the private investors who purchased the Irish Life and Permanent shareholding in the National Asset Management Agency. [25641/12]
The NAMA SPV was established with Eurostat approval and with Irish Life as one of the private owners. However, as Irish Life is now in public ownership, Eurostat attached a reservation to our Maastricht Returns in which it raised concerns about the private sector ownership of the NAMA SPV and consequently the treatment of NAMA for the purposes of calculating General Government Debt. I am advised that the sale of the Irish Life shareholding in the NAMA SPV to private investors has been agreed and it is anticipated that the transaction will be completed in the coming weeks. As a consequence, we expect that the General Government Debt treatment of the NAMA SPV will be unchanged.
I have been in touch with NAMA about the identity of the new private investors in the NAMA SPV and I am satisfied that the new private investors will satisfy Eurostat's requirements.
The identity of the new private investors will be made public in due course when the deal is completed.
64 Deputy Dessie Ellis asked the Minister for Finance if the reductions in GDP growth in quarter 3 and quarter 4 of 2011 officially places this State back in recession; and if he will make a statement on the matter. [25642/12]
Preliminary estimates from the Central Statistics Office (CSO) show that, for 2011 as a whole, GDP grew by 0.7 per cent. This was the first full year of growth since 2007 and is a very welcome development.
The economy is expected to record a second successive year of positive growth this year. My Department's latest forecasts — which were published in April's Stability Programme Update — project GDP growth of 0.7 per cent again this year. The recovery is expected to broaden out and gain ground next year, with growth of 2.2 per cent foreseen. This view is shared by other forecasters, both domestic and international. Indeed, the figures published yesterday by the OECD show
GDP growth of 0.6 per cent this year and 2.1 per cent next year, broadly in line with those presented in the SPU. There are, of course, risks to the economic outlook. A number of downside and upside risks were identified in the SPU and remain valid at this juncture. Given the current heightened uncertainty, my Department is closely monitoring the economic situation and the
risks to its growth forecasts, and will continue to do so over the coming weeks and months. The technical definition of a recession is two consecutive quarters of negative growth. According to the preliminary estimates from the CSO, GDP contracted on a quarterly basis in the third and fourth quarters of last year. While disappointing, this was not unexpected given the heightened uncertainty and weak external environment in the second half of last year. In this context, it should be borne in mind that a number of other countries saw a contraction in activity in the third and fourth quarters of 2011. It is generally believed that the economy grew again in the first quarter of 2012.
65 Deputy Patrick Nulty asked the Minister for Finance if he will consider launching a review process for the introduction of a wealth tax here; his views on the introduction of such a tax; and if he will make a statement on the matter. [25411/12]
The Government does not propose at this time to introduce a wealth tax, although all taxes and potential taxation options are constantly reviewed. I gave a comprehensive reply yesterday to Parliamentary Question 25100/12 from the Deputy in relation to the potential revenue implications of various forms of wealth tax, including possible negative effects on receipts from CGT and CAT.
66 Deputy Micheál Martin asked the Minister for Finance if he has discussed banking regulation and co-operation between the International Financial Services Centre here and in London city with Prime Minister Cameron recently; and if he will make a statement on the matter. [24828/12]
As Minister for Finance I have not had any recent meetings with Prime Minister Cameron. I had a bilateral meeting with my UK counterpart, the Chancellor, George Osborne, on 14 December 2011 where a number of issues were discussed, including banking regulation. I have regular contact with the Chancellor through ECOFIN meetings. I also met Lord Turner, who is the Chair of the UK Financial Services Authority, on 27 April 2012.
67 Deputy Clare Daly asked the Tánaiste and Minister for Foreign Affairs and Trade if he will raise with the Chinese authorities the case of Mr. Chen Guangcheng, [25817/12]
The case of Chen Guangcheng has been raised frequently by the European Union including at the EU-China human rights dialogue on 16 June 2011. Mr. Chen, a blind human rights defence lawyer was, until recently, being held under house arrest in Shandong Province in China. Mr. Chen is no longer in China. He arrived in the United States on 19 May where he will take up a fellowship at New York University.
68 Deputy Joanna Tuffy asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to use the opportunity provided by the upcoming Ireland European Union Presidency to try to assist in bringing together Israel and the Palestinian territories into negotiations for a peace process that would lead to a Palestinian State and security for Israel and peace and prosperity in the region, in particular using diplomatic efforts during the Irish European Union Presidency, and positive engagement with both sides, and measures to ensure greater ties between Israel, a future Palestinian State, as well as the current Palestinian territories, and the European Union, and that Ireland having experience in the negotiation of a peace process, and as a neutral country, has a unique contribution that it can make in this policy area; and if he will make a statement on the matter. [25835/12]
Ireland strongly supports the European Union's efforts to work with and encourage the parties to the Middle East peace process to reach a comprehensive settlement based on a two-state solution, in which Israel and a State of Palestine will coexist side by side in peace and co-operation with each other and their neighbours in the region. In our view, this is the only way the long-term security, prosperity and dignity of both Palestinians and Israelis can be assured. In addition to the support we have lent at EU level, we have pressed this view directly in our bilateral relations with the parties, notably during my visit to the region in January of this year. Ireland's EU Presidency in 2013 will be informed by the values and priorities of Irish foreign policy. Contributing to the search for a lasting settlement of the Middle East conflict is a major priority and, as Presidency, we will be doing everything possible to support and encourage the EU's efforts in that direction. As the Deputy will be aware, however, the Lisbon Treaty places CFSP issues such as this under the co-ordination and direction of High Representative Ashton and the External Action Service. There is no longer any direct role to be played by the rotating Presidency. We will, however, use the influence available to us to support and promote the EU's vital work in this area, working closely with our Council colleagues and with the relevant official structures.
69 Deputy Thomas P. Broughan asked the Tánaiste and Minister for Foreign Affairs and Trade the number of persons who retired from the public sector who have been re-employed by his Department in 2011 and to date in 2012; and their grades; the cost of same; and if he will make a statement on the matter. [25856/12]
Details are set out in the following table of a total of nine retired officials of my Department who were temporarily re-engaged or who were already contracted to the Department during the period in question:
|
Grade |
Position Held |
Duration |
Estimated Cost of Contract in 2012 |
|
1 Assistant Secretary |
Head of Task Force in connection with Ireland’s Chairmanship of the OSCE, 2012 |
Contract from 7 January 2011 to 31 December 2012 |
€70,835 |
|
1 Deputy Secretary |
Tánaiste’s Special Representative in connection with Ireland’s Chairmanship of the OSCE, 2012 |
Contract for a maximum of 30 weeks spread over the 12 months of 2012 |
€62,450 |
|
1 Assistant Secretary |
Passport Appeals Officer |
3-year contract from 20 January 2012 to deal with appeals as and when they arise |
Dependent on the number of appeals processed (no costs incurred in 2011 or to date in 2012) |
|
1 Assistant Secretary |
To assist in the preparation of files for the National Archives |
Contract for a maximum of 10 weeks spread over the 12 months of 2012 |
€16,246 |
|
1 Development Specialist |
Review of certain development cooperation projects |
Contract for a maximum of 38 days from April 2010 to June 2012 |
€2,100 |
|
1 Assistant Secretary |
Chair of the Point 7 Constituency of the Global Fund to fight AIDS, TB and Malaria |
3-year contract for a maximum of 175 days from 31 December 2010 |
€21,000 |
|
1 Counsellor |
Relating to Ireland’s Chairmanship of the OSCE, 2012 |
Contract from 4 February 2011 to 22 December 2011 |
€29,452 in 2011 (no costs incurred in 2012) |
|
1 Accountant |
To provide technical support for the Finance Unit of Irish Aid |
Two-month contract from February — March 2012 |
€10,400 |
|
1 Counsellor |
To assist in preparations for the Irish Presidency of the European Union in January-June 2013 |
From 1 May 2012 until 30 June 2013 |
€8,866 |
The policy of my Department regarding the re-engagement of retired officials is to do so to the minimum extent possible. However, for certain once-off or short-duration projects, it is more productive and cost-effective to re-engage retired staff who already have the relevant expertise and experience than to go through a time-consuming and relatively expensive recruitment, induction and training process. Where it occurs, retired staff are usually re-engaged on a pension abatement basis, which means in effect that they continue to receive their pensions and are paid correspondingly reduced salaries by the Department. There are no State agencies under the aegis of my Department.
70 Deputy Terence Flanagan asked the Minister for Finance the position regarding the seed capital scheme in respect of persons (details supplied) in Dublin 13; and if he will make a statement on the matter. [25832/12]
To qualify for relief under the seed capital scheme the activities of the company, in which the investment is made, are required to constitute a qualifying new venture. A qualifying new venture means a venture consisting of trading activities, which are set up and commenced by a new company other than:
(a) a trade which was previously carried on by another person and to which the company has succeeded or
(b) a venture which was previously carried on as part of another person’s trade.
If an individual establishes a new company that takes over a trade that was previously carried on by another person then the investment in the shares of the new company will not qualify for seed capital relief.
71 Deputy Pearse Doherty asked the Minister for Finance his views on whether his growth projections for 2012 and 2013 remain valid in view of the fact that GDP fell by -1.1% in Q3 2011 and -0.2% in Q4 2011 placing the economy officially back in recession and in view of the fact that he has revised downwards growth projections for 2011 on four separate occasions and the fact that export growth continues to slow as a result of the recession across the Eurozone; and if he will make a statement on the matter. [25883/12]
91 Deputy Bernard J. Durkan asked the Minister for Finance if he is satisfied that the target and projections in respect of economic performances in respect of the next 12 months are attainable; and if he will make a statement on the matter. [25944/12]
I propose to take Questions Nos. 71 and 91 together.
As have been said on many occasions, macroeconomic forecasting is not an exact science. Growth forecasts are subject to ongoing revisions irrespective of what institution — domestic or international — is conducting the exercise.
My Department's latest economic forecasts are set out in the 2012 Stability Programme Update (SPU), which was published on April 27. GDP is projected to grow by 0.7 per cent this year, with growth of 2.2 per cent foreseen for next year.
These forecasts take account of the preliminary national accounts estimates for the third and fourth quarters of last year, along with the preliminary 2011 estimate and other information that became available between Budget time and late April.
My Department's view that economic activity will expand again this year, and strengthen next year, is shared by other forecasters, both domestic and international. Indeed, the figures published yesterday by the OECD assume GDP growth of 0.6 per cent this year and 2.1 per cent next year, which are broadly in line with those presented in the SPU. At present, the range of GDP growth forecasts for 2012 extends from 0.5 per cent (the consensus) to 0.9 per cent (the ESRI), with the Department of Finance's projection in the middle. The Department's growth forecast for next year is also roughly mid-way.
The growth forecasts set out in the SPU remain valid at this time. That is not to say that there are not risks. There clearly are. A number of downside and upside risks were identified in the SPU and remain valid at this juncture. Given the current heightened uncertainty, my Department is closely monitoring the economic situation and the risks to its growth forecasts, and will continue to do so over the coming weeks and months.
72 Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding tax; and if he will make a statement on the matter. [25688/12]
I am advised by the Revenue Commissioners that underpayments of Income Tax have arisen in respect of the persons who are the subject of this question, for the years 2010 and 2011. The underpayments arose due to an administrative error, which resulted in the issue of incorrect tax credit certificates to their employers. These certificates granted the individuals additional tax credits that they were not in fact entitled to. Revenue have apologised for this error, and have agreed to spread the collection of the underpayment over three years commencing in January 2013.
73 Deputy Gerry Adams asked the Minister for Finance if there are any regulations in relation to the premium or other charges or fees charged by companies for life protection policies; if there are any limits set by the Financial Services Regulatory Authority or the Central Bank of Ireland in relation to the increases in premiums or other charges; and if he will consider introducing such regulations or guidelines. [25731/12]
I, as Minister for Finance have no statutory role in relation to the premium, charges or fees for life protection policies. These are commercial decisions for the various insurers themselves. However, the Central Bank's Consumer Protection Code contains provisions which impose obligations on regulated entities, including those offering life protection policies, in relation to the disclosure of charges. Regulated entities are required to make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the consumer. In addition, the 2001 Life Assurance (Disclosure of Information) Regulations contain requirements for product disclosure, including the disclosure of intermediary remuneration.
74 Deputy Peter Mathews asked the Minister for Finance the primary budget deficits in 2011; the anticipated primary budget deficit in 2012, 2013 and 2014; and if he will make a statement on the matter. [25756/12]
As the Deputy is aware the latest estimate of the General Government Primary Balance for 2011, as well as my Department's latest projections for the years 2012-2015, is set out in Table A1, Annex 2 on page 49 of the recently published Stability Programme Update. These estimates are set out again in the table below:
|
% of GDP |
2011 |
2012 |
2013 |
2014 |
2015 |
|
General Government Primary Balance |
-9.4* |
-4.2 |
-1.9 |
0.8 |
2.8 |
*This is the headline Primary Balance. The underlying Primary Balance, excluding the 3.7% of GDP in GGB impacting capital transfers to AIB and ILP, was -6.0% of GDP.
75 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the number of persons whose income is more than €1 million; and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25820/12]
76 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the number whose income is over €500,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25821/12]
77 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the numbers whose income is over €250,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25822/12]
78 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the numbers whose income is over €100,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25823/12]
79 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the numbers whose income is over €70,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25824/12]
80 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the numbers whose income is over €40,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25825/12]
81 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the numbers whose income is over €35,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25826/12]
82 Deputy Finian McGrath asked the Minister for Finance for the two most recent years available, the numbers whose income is over €50,000 and the percentage this is of the overall number of taxpayers; the amount of tax paid and the percentage of overall tax take. [25827/12]
I propose to take Questions Nos. 75 to 82, inclusive, together.
I am advised by the Revenue Commissioners that the information requested, estimated by reference to the income tax years 2011 and 2012, is set out in the following tables.
|
Range of Gross Income |
Number of Taxpayers |
% of Total Number of Taxpayers |
Income Tax |
% of Total Income Tax Yield |
|
Over €35,000 |
833,759 |
38.70 |
€11,118,972,800 |
93.69 |
|
Over €40,000 |
696,108 |
32.31 |
€10,670,655,000 |
89.91 |
|
Over €50,000 |
491,258 |
22.80 |
€9,612,633,600 |
81.00 |
|
Over €70,000 |
259,458 |
12.04 |
€7,533,907,000 |
63.48 |
|
Over €100,000 |
111,053 |
5.15 |
€5,204,710,600 |
43.86 |
|
Over €250,000 |
13,565 |
0.63 |
€1,954,914,500 |
16.47 |
|
Over €500,000 |
3,262 |
0.15 |
€1,015,132,600 |
8.55 |
|
Over €1,000,000 |
636 |
0.03 |
€526,030,300 |
4.43 |
|
Range of Gross Income |
Number of Taxpayers |
% of Total Number of Taxpayers |
Income Tax |
% of Total Income Tax Yield |
|
Over €35,000 |
844,489 |
39.00 |
€11,346,464,900 |
93.76 |
|
Over €40,000 |
706,159 |
32.62 |
€10,893,221,300 |
90.02 |
|
Over €50,000 |
499,285 |
23.06 |
€9,820,466,500 |
81.15 |
|
Over €70,000 |
264,621 |
12.22 |
€7,707,555,600 |
63.69 |
|
Over €100,000 |
113,489 |
5.24 |
€5,328,329,800 |
44.03 |
|
Over €250,000 |
13,895 |
0.64 |
€2,002,528,400 |
16.55 |
|
Over €500,000 |
3,336 |
0.15 |
€1,038,731,400 |
8.58 |
|
Over €1,000,000 |
657 |
0.03 |
€538,311,300 |
4.45 |
It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2010.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2009 adjusted as necessary for income and employment trends for the years 2011 and 2012 respectively. They are therefore provisional and likely to be revised.
It should be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
83 Deputy Sean Fleming asked the Minister for Finance if he will re-examine the VAT legislation with a view to making changes to eliminate the situation whereby certain tour operators are having to pay VAT twice on the same product for example, operators who provide a package for premiership league matches in the UK have to pay VAT in the UK on hotel rooms and match tickets which they cannot reclaim either in the UK or in Ireland and also have to pay VAT of 23% on their margin in Ireland, part of which package has already incurred VAT in the UK; and if he will make a statement on the matter. [25851/12]
Provisions covering the Travel AgentsMargin Scheme are contained in Section 88 of the VAT Consolidation Act 2010. This scheme, which is provided for in Articles 306 to 310 of the EU VAT Directive, with which Irish VAT law must comply, was introduced with effect from 1 January 2010. Detailed discussions with the travel industry were carried out prior to the introduction of the scheme which is a standard EU-wide Scheme in operation in most Member States of the EU. The scheme deals with the activities carried on by travel agents who act in the capacity of a principal when supplying certain travel services such as transport, accommodation, etc, which they have bought in from third parties for onward supply to travellers. Travel agents covered by the scheme are liable to VAT on their margin on the services provided rather than the full consideration they receive in respect of the supply of these services. For example, a travel agent acting as principal in arranging visits to the UK will pay UK VAT at 20% on hotel accommodation and event tickets and incur a zero UK VAT-rate on transport. The travel agent will then pay Irish VAT at 23% only on the margin, that is, the difference between his income from travellers and his expenses in buying in the services (accommodation, tickets, transport). None of the constituents that make up the income from the traveller is subject to VAT more than once.
The nature of the scheme means that the travel agent only has an obligation to account for VAT on the margin in the country where the agent is established. The travel agent has no further VAT obligations in places where the travel services are supplied. The travel agent cannot recover any VAT charged when he/she purchases the travel services but this is because VAT is only accounted for on the margin when the services are supplied on to the traveller. Travel agents, like other traders, can recover VAT on deductible overheads (electricity, heating, stationary) incurred by them in connection with their taxable supplies.
The margin scheme has benefits for a travel agent in terms of complying with their VAT obligations. In the absence of the scheme the travel agent may have compliance obligations across many Member Sates of the EU which would place significant administrative burdens on them.
84 Deputy Thomas P. Broughan asked the Minister for Finance the profile of staff in his Department in terms of professional qualifications, details of the number of staff who have a legal, accounting or economic qualification; and if he will make a statement on the matter. [25862/12]
The following table outlines the Qualifications in my Department:
|
Qualification |
Accountancy |
Business |
Economics |
Law |
Finance |
Other* |
|
Cert |
7 |
4 |
7 |
3 |
9 |
73 |
|
Diploma and HDP |
9 |
3 |
5 |
14 |
2 |
57 |
|
Degree |
3 |
21 |
36 |
7 |
2 |
73 |
|
Masters |
5 |
25 |
1 |
32 |
||
|
PHD |
1 |
2 |
||||
|
Professional |
4 |
1 |
4 |
|||
|
Misc |
1 |
11 |
||||
|
Total |
24 |
33 |
74 |
25 |
14 |
252 |
Please Note: Some Officers carry more than 1 qualification and this table does not include individuals who are working in the Department on a pro bono basis
*Includes but not limited to Degrees and Masters etc in other disciplines; e.g. Engineering, Sciences, Human Resources, Management, I.T. and Arts.
85 Deputy Thomas P. Broughan asked the Minister for Finance in relation to workers who are paid as contractors at a semi-State body (details supplied) and who work side by side with employees of the organisation, if there is a public tendering competition for the presenter contracts in question and is this not required for Revenue rules to distinguish between employers and contractors in relation to avoidance schemes; and if he will make a statement on the matter. [25863/12]
The engagement of staff of semi-State companies is a matter for those companies. I am informed by the Revenue Commissioners that there are no "Revenue rules" that distinguish employers and contractors. However, as to the distinction between an employee and a self-employed contractor, whether an individual is engaged under either a contract of service (i.e. an employee) or a contract for service (i.e. self-employed) is not a choice but rather a question of fact and of general law. Regardless of how the parties to an engagement may describe themselves, all the possible factors (including written, oral and implied details) that bear on the relationship between the parties must be examined, given their proper weight and a decision made on their overall effect.
To try to provide some clarity as to whether an individual is employed or self-employed, the Employment Status Group (set up under the Programme for Prosperity and Fairness) published a Code of Practice for determining Employment or Self-employment status of Individuals. This Code of Practice was re-launched in December 2007.
86 Deputy Patrick O’Donovan asked the Minister for Finance if there will be permanent or temporary vacancies in an organisation (details supplied) in Limerick; and if he will make a statement on the matter. [25864/12]
I am advised that the organisation has a requirement to fill a small number of permanent and temporary posts in Limerick at this time. The filling of any such posts requires the sanction of the Department of Public Expenditure and Reform in the context of Government policy on reducing public sector numbers. I am further advised that the organisation currently has sanction to fill five permanent clerical officer posts in Limerick from the Public Service Resource Panel in the first instance. This panel comprises staff from other Public Service Bodies who are available for redeployment. It is also anticipated that there will be some limited temporary recruitment required to assist with peak business activity and to facilitate staff availing of the shorter working year. These temporary posts are for periods of ten weeks or less. In the event that these requirements cannot be facilitated from the Public Service Resource Panel, the posts may be filled by open recruitment through the Public Appointments Service.
87 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the various factors likely to affect growth in this economy have been identified and isolated with a view to specific or particular action likely to result in job creation; and if he will make a statement on the matter. [25940/12]
Last year, the economy expanded by 0.7 per cent, the first year of growth since 2007. However, in order to make inroads into the unacceptably high level of unemployment, the growth rate will have to pick-up. This will require further improvements in competitiveness. In addition, sustainable public finances are a prerequisite for economic growth and we must therefore correct our excessive deficit by 2015. Finally, we need to be sure that we have a banking system which is capable of supporting the economy. These are the broad areas being addressed by Government and progress is being made. For instance, I think it's fair to say that there are tentative signs of an improvement in labour market conditions. The latest data show that employment increased by 0.6 per cent (the equivalent of 10,000 jobs) in the final quarter of last year, the first increase in four years, and I am encouraged by this. In addition, there has been a modest fall in the Live Register in the opening months of this year.
I am confident that the measures introduced by this Government, such as reducing the rate of VAT in the high value added tourism sector, are playing an important role in both creating and sustaining employment.
Finally, I want to reiterate that addressing the difficulties in the labour market remains the Governments biggest challenge and, accordingly, the Government is giving its highest priority to job protection and job creation.
88 Deputy Bernard J. Durkan asked the Minister for Finance if there is agreement among the EU Council of Finance Ministers both within the Euro zone and without on a strategy whereby each member State within the union undertakes specific responsibilities with a view to achieving economic recovery and stability in the financial markets; and if he will make a statement on the matter. [25941/12]
92 Deputy Bernard J. Durkan asked the Minister for Finance if he is satisfied at the extent to which economic issues have been addressed within this State in 2011; the extent to which issues affecting this country’s economy at a European level have been identified and resolved; the extent to which economic growth is likely to reflect the changing situation; and if he will make a statement on the matter. [25945/12]
I propose to take Questions Nos. 88 and 92 together.
While the EU and the euro area in particular has and continues to experience very turbulent and volatile times, it must be acknowledged that significant policy developments have also taken place. Considerable progress has been made in terms of improving the functioning of the EU and of the euro area in particular. Amongst other things we now have:
The EU Semester;
Strengthened surveillance via the so-called "six-pack" of governance measures;
The Euro Plus Pact to inter alia improve competitiveness; and,
Strengthened financial regulation.
These are all important developments and demonstrate that the EU can unite and work in the interests of all. To me this shows that the European Union can make significant decisions and progress that not so long ago would have been seen as almost unthinkable, and I take a lot of encouragement from this.
There is also the comprehensive package announced by the euro area Heads of State or Government on the 26th October 2011. This, as you know, is essentially a five-point strategy involving:
A credible solution to the Greek situation;
Boosting the effective capacity of the financial support facility;
Recapitalising Europe's banks;
Implementing policies to boost growth and address imbalances; and,
Improving economic governance in the euro area.
I want to assure the Deputy that work is continuing on implementing these important decisions. It is clear that we have not yet got to the end of the euro area crisis and it is clearly in all of our interests that we move forward as rapidly as possible in that regard. This evening's informal EU Heads of State or Government meeting and further work in the context of next month's European Council will also be of significance.
Turning to the Irish economy, last year the economy expanded by 0.7 per cent, the first year of growth since 2007. Measures that this Government introduced as part of the Jobs Initiative last May along with various other policy initiatives have had a positive impact. The recovery is expected to continue this year, and to both broaden and gain ground in 2013. Over the medium term, a return to robust and more sustainable growth is foreseen. While exports are expected to continue supporting economic activity, a gradual pick-up in domestic demand is also projected as the recovery broadens further and spills over to the labour market.
With regard to the impact of a slowdown of growth in Europe as a result of the recent resurgence of the sovereign debt crisis, as a small open economy whose recovery is being driven by exports, we are obviously affected by the slowdown. It should be noted however, that competitiveness improvements evidenced in recent years will provide some support.
Finally, from our perspective, and indeed from the perspective of the euro area as a whole, it is crucial that we move forward as quickly as possible with providing clarity on the future of the euro area.
90 Deputy Bernard J. Durkan asked the Minister for Finance the extent if any to which this country’s economic competitiveness has improved or otherwise fluctuated over the past twelve months; if there are particular areas deemed to require further efforts in this regard; and if he will make a statement on the matter. [25943/12]
Substantial progress has been made in terms of improving our competitiveness. Relatively lower price inflation over the last number of years means that Irish price levels have fallen relative to our major trading partners. At the same time there has been a significant improvement in our cost competitiveness. Indeed, the European Commission recently forecast that our nominal unit labour costs will have fallen by a cumulative 16.5 percentage points in the period 2009-2013 compared to an increase of 6.6 percentage points for the euro area as a whole. On foot of these positive developments, we have seen a recovery in our exports as well as an improvement in inward foreign direct investment, and I am encouraged by this. Having said that, further improvements in competitiveness are clearly needed in order to make significant inroads into the unacceptably high rate of unemployment that we are currently faced with.
93 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economic fundamentals have changed in the course of the past three years with particular reference to the need to achieve established or accepted targets for borrowing, lending, growth and debt ratios; and if he will make a statement on the matter. [25946/12]
Following three successive years in which output fell, positive growth returned to the Irish economy last year. The recovery is expected to continue this year, and to both broaden and gain ground in 2013. Over the medium term, a return to robust and more sustainable growth is foreseen. While exports are expected to continue supporting economic activity, a gradual pick-up in domestic demand is also projected as the recovery broadens further and spills over to the labour market. We have also seen that 2011 marked a record year for inward Foreign Direct Investment and the pipeline remains strong. All of this points to the fact that many of the underlying strengths of our economy remain, including a well-educated workforce, favourable demographics, an open and flexible economy and a pro-enterprise environment. Of course there are many challenges which we still face and it will take time to work through the legacies of the crisis. Not least of these is the high level of Government debt which we have accumulated as a result of the substantial fiscal deficits that were recorded in each of the last four years and the very significant costs of providing support to the banking sector. Substantial corrective action has been taken to return stability to the public finances and while General Government Debt is now forecast to peak at 120 per cent of GDP next year, it is expected to decline to around 117 per cent by 2015 based on the recent Stability Programme Update projections. Our public finances are showing signs of improvement after a number of very difficult years and we are on track to bring the deficit below 3 per cent of GDP by 2015, in line with the targets set.
As the Deputy is aware, the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the period 2011-2014. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period. This lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013.
The Government has imposed lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. The pillar banks are required to submit their lending plans to the Department and the Credit Review Office (CRO) at the beginning of each year, outlining how they intend to achieve their lending targets. The banks also meet with the Department and the CRO on a quarterly basis to discuss progress. The banks provide my Department and the CRO with monthly returns outlining their SME lending figures, broken down at a sectoral and regional level. The monthly management meetings with the pillar banks also provide a forum for the issue of SME lending to be raised by my Department.
94 Deputy Bernard J. Durkan asked the Minister for Finance the likely criteria to be applied in the future in respect of stress testing of mortgage applicants with particular reference to the need to have due regard for the established principle of a repayment capacity of approximately two and a half times the income of the borrower; the way it might be expected that this part of the mortgage market might be funded in future in view of the experience of the past ten years; and if he will make a statement on the matter. [25947/12]
Mortgage lending must fully comply with the regulatory requirements set by the Central Bank, both in relation to the financial institution itself and also the safeguarding of the borrower's interests. When providing a product or service to a customer, a financial institution must comply with the “Knowing the Customer” and “Suitability Provisions” of the Central Bank’s revised Consumer Protection Code (“the Code”), which came into effect on 1 January this year. This process involves, inter alia, gathering relevant information from the customer about his/her financial situation, individual circumstances and needs. Based on this information, the financial institution is required to complete a “Suitability Process”, where only products suitable to that particular customer are offered. While affordability is a prime component of suitability, a fuller consideration of a customer’s individual circumstances and needs would be required in order to comply with the suitability provisions of the Code.
In this regard, a significant addition to the Code is the 2 per cent stress testing that mortgage lenders are obliged to undertake with respect to all personal consumer mortgage applications with the exception of fixed rate mortgage products of at least 5 years duration. The revised Consumer Protection Code may be accessed at www.centralbank.ie.
As regards the future funding of the mortgage market, the banking system restructuring plan creates capacity for the two Pillar Banks, Bank of Ireland and AIB, to provide lending in excess of €30 billion in the years 2011-2013. SME and new mortgage lending for these banks is expected to be in the range of €16-20bn over this period.
95 Deputy Bernard J. Durkan asked the Minister for Finance the number of applications for refund of income tax to the Revenue Commissioners made in each of the past three years to date; the total value of refund approved and rejected in each year; and if he will make a statement on the matter. [25948/12]
I am informed by the Revenue Commissioners that the table below represents the number of repayments made to PAYE taxpayers for 2009-2012. These repayments represent those cases for which a review of taxpayers' details resulted in a PAYE refund following claims from the taxpayer for credits or reliefs to which they are entitled. I am further informed that the total amount refunded is exclusive of mortgage interest and medical insurance relief, which are granted at source.
|
Year |
No. of Reviews |
Repayments |
|
(millions) |
||
|
2009 |
1,415,133 |
795 |
|
2010 |
1,219,860 |
583 |
|
2011 |
1,143,986 |
558 |
|
2012 (to end April) |
602,318 |
230 |
Regarding rejected refunds, I am informed by Revenue that since the launch of their Realtime Risk Framework system in July 2011, some 84,200 refund claims, to the value of approximately €81.9 million, have been examined and of these, approximately 7,500 claims with a value of almost €9.2 million have been disapproved to date.
I am also informed by the Revenue Commissioners that the additional table below represents the number of repayments for 2009-2012 made to taxpayers who pay their income tax through the self-assessment system. These repayments represent those cases for which refunds would have arisen on foot of the receipt of the annual return of income form from the taxpayer as well as refunds of professional services withholding tax. However, the total amount refunded is exclusive of mortgage interest and medical insurance relief, which are granted at source and also excluded are direct refunds of relevant contracts tax and international claims.
|
Year |
Repayments |
|
(millions) |
|
|
2009 |
742 |
|
2010 |
567 |
|
2011 |
545 |
|
2012 (to end April) |
122 |
I am further informed that that the Revenue Commissioners are unable to provide information in the time available on the number of rejected refund claims relating to those paying their income tax through the self-assessment system. The Commissioners advise, however, that a large number of self-employed income tax refunds arise due to overpayments of preliminary income tax.
96 Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the requirements of the Corporate Enforcement Regulator are being met in full or in part by all or some of the financial institutions including insurance or investment companies; if insurance or pension products being advertised continue to be subject to rigorous appraisal; and if he will make a statement on the matter. [25949/12]
The Office of the Director of Corporate Enforcement is under the aegis of the Minister for Jobs, Enterprise and Innovation and as Minister for Finance I have no role in ensuring compliance by regulated financial service providers with the requirement of that Office The Central Bank's primary regulatory role concerns regulated financial service providers. The Central Bank has informed me that it does not regulate individual insurance or investment products as this is a commercial matter for the companies concerned. The Central Bank has in place a consumer protection code which applies to all financial service providers including insurance companies, regulated by them (regulated entities). This code sets out rules that regulated entities must comply with when dealing with their customers.
I have been informed by the Revenue Commissioners that Personal Retirement Savings Accounts (PRSAs) are jointly approved by the Pensions Board and the Revenue Commissioners. Revenue also approves Occupational Pension Schemes and certain other Pension Products.
97 Deputy Seán Kyne asked the Minister for Education and Skills if consideration will be given to reforming the information and communications technologies curriculum at second-level to focus on the dispersal of skills such as software programming and coding which will provide school-leavers with a grounding in the most relevant ICT skills and also ensure that Ireland can continue to successfully compete internationally for this sector’s investment and jobs. [25689/12]
The current focus in schools is on using ICT (a) as a tool in learning and (b) to improve the quality of teaching and learning across the curriculum, guided by the ICT curriculum framework developed by the NCCA. This framework is supported by extensive digital resources on the Scoilnet website, by professional development programmes for teachers and by investment in ICT infrastructure. All post-primary schools will be connected to a 100Mbps broadband service by the end of 2014, providing for improved integration of ICT in learning.
I am currently leading the reform of the Junior Cycle. A Framework for the revised Junior Cycle has been prepared. It contains 24 Statements of Learning. One of the Statements of Learning aims to ensure that all students "use ICT effectively and ethically in learning and in life". The reform will also allow for the introduction of optional school developed short courses of 100 hours duration. This will provide a new opportunity for schools to progress the provision of short courses to enhance students' ICT skills which will be embedded in all their learning. Such courses could include software programming and coding, if a school so chooses.
For Transition Year, there is an option available to schools called "Having Fun with Computer Programming and Games".
Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM) are also significant components in the syllabuses of Technology and also of Design and Communication Graphics.
98 Deputy Stephen S. Donnelly asked the Minister for Education and Skills if he will set out the changes being implemented to the general allocation model for learning support and resources teachers; if it is the case that, under these changes, a three teacher school which has an allocation of 11 resource hours will no longer be able to combine its learning support and resource allocation to create one full-time post, but instead will have those services provided by separate part time staff who will be travelling between schools; his views on a statement made to this Deputy by a local learning support resource teacher that the current system, which allows such teachers to divide their time between learning support and resource, while based full time in the one school, gives the school greater flexibility to support pupils on the ASD spectrum, as there are staff on hand if spontaneous problems arise; and if he will explain whether the changes will result in increased expenditure and time lost due to increased travel between schools for learning support teachers. [25700/12]
The new arrangements for 2012/13 school year incorporate a long overdue updating of the GAM (learning support) allocation for all schools. This inevitably involves changes to existing clustering arrangements whereby a teacher is shared between schools. Shared full-time posts and travel between schools is a long standing feature of the primary system. There were a plethora of long-standing clustering arrangements in place which were not the most practical, efficient or cost effective way to allocate resources. The new arrangements I announced last December are designed to address the limitations of the current arrangements and will operate from September 2012.
Schools are being empowered to cluster and arrange their General Allocation Model resources in a manner that best suits their local needs, including in a manner that reduces travel between schools. This school led process has resulted in over 97% of the overall GAM allocation being in full-time stand-alone or shared posts. Aside from the reforms to the GAM, the allocation of resource hours for individual pupils vary from year to year. This is because of the ongoing individual assessment of pupils through the NCSE must operate on a later timescale. The new arrangements involve the allocation of a network of permanent posts in base schools and again are designed to make the system work more smoothly at school level.
All indications to date are that the new clustering arrangements being made by schools will have the desired effect on the ground. My Department will continue to work with schools and the relevant education partners to ensure that the new arrangements operate as efficiently as possible. As the process proceeds this work can take account of any appropriate local arrangements that might be made to further optimise travel arrangements.
99 Deputy Kevin Humphreys asked the Minister for Education and Skills the action that has been taken on the recommendation of the National Competitiveness Council in the Ireland’s Competitiveness Challenge 2011 report to dedicate greater class time to mathematics at primary school level; and if he will make a statement on the matter. [25715/12]
Circular 0056/2011 — Initial Steps in the Implementation of the National Literacy and Numeracy Strategy was issued to Primary Schools in November 2011.
Para 5.2 of the Circular informed primary schools that from January 2012 they had to increase the time spent on mathematics by 70 minutes per week. For infants with their shorter school day this will require 3 hours 25 minutes. For other students with a full day this will require 4 hours 10 minutes.
100 Deputy Aodhán Ó Ríordáin asked the Minister for Education and Skills the number of whole school evaluation inspections and subject inspections that have been carried out in schools in the second level sector described as further education colleges; the number of inspections which would be proportionate to the teacher allocation of such schools; and if he will make a statement on the matter. [25717/12]
There are 188 schools in the second level sector that offer Post Leaving Certificate (PLC) courses covering a wide range of disciplines. 167 of these schools provide PLC courses in addition to their curriculum provision for the junior and senior cycles leading to the Junior Certificate and Leaving Certificate examinations and qualification. Since 2003, the Inspectorate has conducted 1,483 inspections in these 167 schools. These inspections cover a wide range of the schools' activities. 21 of the 188 schools do not provide post-primary education and can be regarded as stand-alone colleges offering PLC courses and other further education and training programmes. The inspectorate has conducted 8 inspections in these colleges since 2004.
101 Deputy Denis Naughten asked the Minister for Education and Skills the number of Bus Éireann operated buses providing school transport services in County Roscommon; the corresponding figure for private contractors; and if he will make a statement on the matter. [25732/12]
Bus Éireann, which operates the School Transport Schemes on behalf of my Department, has advised that there are 20 Bus Éireann vehicles and 45 private contractor vehicles providing school transport services in Co. Roscommon.
102 Deputy Eamonn Maloney asked the Minister for Education and Skills following the school inspection report on a school (details supplied), if there are any proposals to provide more permanent accommodation for this school. [25755/12]
The school to which the Deputy refers has submitted an application for improved accommodation. I can confirm that in the context of considering the application, my Department has carried out a site visit to the school. The outcome of this visit is now being considered and my Department will be in further contact with the school authorities as soon as this process has been completed.
103 Deputy Dara Calleary asked the Minister for Education and Skills if he has any plans to close a school (details supplied) in County Mayo. [25757/12]
The criteria under which National Schools are recognised by my Department are outlined in the Education Act 1998 and the Rules for National Schools. Under the criteria, recognition can be withdrawn where a school's pupil enrolment returns to the Department, at 30th September, falls below 8 pupils and remains at this level for at least two consecutive years and where the Patron is satisfied that there is little prospect of a reversal in the school's pupil enrolment trend. The school referred to by the Deputy currently meet the recognition criteria concerned and therefore it is not my intention to close this school in the foreseeable future.
104 Deputy Dara Calleary asked the Minister for Education and Skills if he will accept the appeal lodged by Donegal Vocational Education Committee in respect of the loss of ex-quota guidance counsellor posts and disadvantaged area posts in VEC secondary schools in County Donegal. [25762/12]
Teacher allocations are approved annually in accordance with established rules based on recognised pupil enrolment. My Department has published the staffing arrangements at post primary level for the coming school year, 2012/13. The relevant Post Primary circular is 0009/2012 which is available on my Department's website. At post primary level schools will have autonomy on how best to prioritise its available resources to meet its requirements in relation to guidance and the provision of an appropriate range of subjects to its students. Decisions on how this is done will be taken at school level and I am confident that schools will act in the best interest of students when determining precisely how to use the teaching resources available to them.
A key priority for me is to continue to prioritise and target available funding at schools with the most concentrated levels of educational disadvantage. All 195 second-level schools in DEIS, including eight of the VEC secondary schools referred to by the Deputy, have been given targeted support by a more favourable staffing schedule of 18.25:1. This is a 0.75 point reduction compared to the existing PTR of 19:1 that applies in non fee-paying second-level schools. In accordance with existing arrangements, where a post primary school management authority is unable to meet its curricular commitments within its approved allocation, my Department considers applications for additional short term support i.e., curricular concessions.
The allocation process also includes an appeals mechanism under which schools can appeal against the allocation due to them under the staffing schedule. The VEC referred to by the Deputy has submitted an appeal and will be notified of the outcome of the appeal when the appeal process is completed. The Appeal Board operate independently of the Department and its decision is final. The final staffing position for all schools at post primary level will ultimately not be known until the Autumn. At that stage the allocation process will be fully completed and all appeals to the Staffing Appeal Board will have been considered.
105 Deputy Dara Calleary asked the Minister for Education and Skills if his attention has been drawn to efforts made by his Department to acquire a site for a proposed education campus (details supplied) in County Donegal. [25765/12]
I wish to advise the Deputy that there has been ongoing contact with the relevant stakeholders in relation to the proposal to which he refers. A number of potential sites identified have been deemed unsuitable. However, my officials will continue to engage with the relevant stakeholders in relation to identifying a suitable site. The acquisition of a site will be considered in the context of the capital budget available to my Department for school buildings generally.
106 D’fhiafraigh Peadar Tóibín den Aire Oideachais agus Scileanna an bhfuil plé déanta ag an gCoiste Idir-Rannach atá ag plé le hoideachas faoin Straitéis 20 Bliain don Ghaeilge ar na himpleachtaí a bheidh ag na ciorruithe oideachais ar chur chun cinn na Straitéise; agus an ndéanfaidh sé ráiteas ina thaobh. [21659/12]
Tionóladh cruinniú tionscnaimh den Ghrúpa Idir-Rannach ar an Straitéis 20 Bliain don Ghaeilge 2010-2030 ar 8 Feabhra 2012. Bhí ionadaithe i láthair ó roinnt Ranna Rialtais, an Roinn Oideachais agus Scileanna ina measc. Nótáil an cruinniú tiomantas an Rialtais go gcuirfí forfheidhmiú na Straitéise 20 Bliain don Ghaeilge chun cinn laistigh d'acmhainní buiséid atá ann cheana. Ina chur i láthair don chruinniú, nótáil ionadaí na Roinne Oideachais agus Scileanna na dúshláin atá os comhair na Roinne agus an chórais oideachais i gcoitinne, i bhfianaise na n-acmhainní atá ann cheana. Léirigh sé conas mar atá an Roinn ag féachaint le feabhas a chur a chumas sa Ghaeilge i measc múinteoirí agus scoláirí trína Straitéis Litearthachta agus Uimhearthachta 2011-2020, ach go háirithe i réimsí amhail athchóiriú curaclaim, riachtanais iontrála do mhúinteoirí, oiliúint múinteoirí agus trialacha caighdeánacha do scoláirí. Nótáil sé go bhfuil na tionscnaimh fhadtéarmacha seo á gcur i bhfeidhm laistigh d'acmhainní atá ann cheana.
107 Deputy Kevin Humphreys asked the Minister for Education and Skills the action that has been taken on the recommendation of the National Competitiveness Council in the Ireland’s Competitiveness Challenge 2011 report that where feasible participation in training and profession development for teachers should occur outside of term time; and if he will make a statement on the matter. [25810/12]
My Department actively seeks ways to minimise any disruption to class time. In 2011, Circulars 8 and 25 set out new arrangements for schools, whereby an additional hour per teacher per week is available in order to provide for a range of essential activities to take place without reducing class contact/tuition time. School management may designate the use of the additional time to deal with items such as school planning, continuous professional development (CPD), induction and policy development. In keeping with this development, the professional development support services and education centres also provide much of their training activities through out-of-school hours, modular and online delivery.
While every effort is made to reduce the impact on teaching time, this is not always possible due to the logistics and numbers of teachers involved in, for example, the national roll out of CPD programmes associated with new or revised curricula, or the implementation of national strategies such as the literacy and numeracy strategy. CPD is offered during school time only when it is considered necessary to do so. Other than CPD provided by the Department, it is worth noting that many teachers participate in a wide range of CPD and further education on a voluntary and independent basis.
108 Deputy Dominic Hannigan asked the Minister for Education and Skills when he expects to have enrolment numbers for the junior infants class 2012/2013 for a town (details supplied) in County Meath; and if he will make a statement on the matter. [25853/12]
The number of junior infants enrolled in 2012/13 will be compiled based on the National School Annual Census Returns 2012/13. Results of the 2012/13 census will be published in September 2013.
109 Deputy Brian Walsh asked the Minister for Education and Skills the amount of funding he expects to be drawn down in respect of schools building projects for each year of the five-year schools building programme; if he expects the amount allocated for 2012 to be fully absorbed; and if he will make a statement on the matter. [25937/12]
The capital allocations for my Department were set out in the Infrastructure and Capital Investment 2012-16: Medium Term Exchequer Framework published last November. The schools sector has an allocation for each of the five years as follows: 2012 —€359.5m; 2013 —€364m; 2014 —€464m; 2015 —€471m; and 2016 —€411m. It is expected that the full allocation for 2012 will be expended by 31 December.
110 Deputy Brian Walsh asked the Minister for Education and Skills the number of school construction projects not included in the five-year schools building programme that are currently at Stage 2(b) of the process. [25938/12]
In March I announced details of 219 major school building projects which will begin construction over the next five years. This was in addition to the 56 major school building projects already announced for 2012. Due to financial constraints and the need to prioritise projects which will meet the increasing demographic needs over the coming years, it was not possible to include all projects in the 5 year programme.
There are another 33 major school building projects which were not included in the 5 year programme and which are currently at stage 2(b) of architectural planning. Three of these have completed stage 2(b). School building projects currently in architectural planning, including the projects referred to above, will continue to be advanced incrementally over time within the context of the funding available. However, in light of current competing demands on the Department’s capital budget, it is not possible to progress these projects to tender and construction at this time.
111 Deputy Seán Crowe asked the Minister for Education and Skills if he will explain the purpose of the €11 million that has been generated as surplus by the Teaching Council; the amount of interest this accrues on an annual basis; the matters on which the interest is spent; the number of teachers this might pay per annum and the reason the Teaching Council accumulates such large sums of money. [25957/12]
The Teaching Council's annual accounts for 2011 show a surplus of c. €11m. Of this amount, €4m has been set aside by the Council to cater for contingencies. Interest on funds in 2011 amounted to €252,000 (2010 —€146,000). This interest forms part of the overall income of the Council.
The surplus finance will be used to meet the increased costs of the Council as it expands its role. As is often the case when legislation is introduced, it is on a phased basis. Some of the main functions of the Teaching Council have not yet been commenced. For example, in relation to Fitness to Teach, while this function is not yet commenced, there has been a huge amount of preparatory work done in advance so that the Council will be in a position to undertake this work when the relevant legislative provision is made. This function, along with others such as Probation, Induction and Continuous Professional Development will lead to a significant increase in Council expenditure and staffing needs in the future. I hope to be in a position to commence a number of further sections of the Act within the next 12 months. The Deputy will be aware that I have publically indicated my support for a recent decision by the Teaching Council to reduce the cost of its registration fee from €90 to €65.
The average cost of hiring a teacher is approximately €60,000.
112 Deputy Mary Lou McDonald asked the Minister for Education and Skills if he intends to review the payments and allowances paid to vocational education committee chief executive officers; the changes, if any, he plans to make to these payments and allowances; and if he will make a statement on the matter. [20296/12]
The Deputy will be aware that the Minister for Public Expenditure and Reform announced a review of allowances and premium payments. Circular 0003/2012 stipulates that allowances are not payable to new beneficiaries; i.e. those who become eligible for receipt of the allowance in question on or after 1 February 2012. Chief Executive Officers who are appointed in a temporary acting capacity after this date will not qualify for payment of an allowance in respect of the discharge of the role of Secretary to a Board of Management of a Comprehensive School or for the role of Transport Liaison Officer. Newly appointed acting CEOs may qualify for the payment of an acting-up/higher duties allowance for the duration of a specified temporary period. This will not confer any entitlement to the higher position and/or higher duties allowance when the temporary period expires.
My officials are currently in discussion with SIPTU, the union which represents the CEOs of the VECs, regarding the overall remuneration structure which will apply to the CEOs of the new Education and Training Boards once established.
113 Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the profile of staff in his Department in terms of professional qualifications, details of the number of staff who have a legal, accounting or economic qualification and their grades; and if he will make a statement on the matter. [25857/12]
My Department is currently preparing a skills audit survey to ensure that staff have the necessary skills and knowledge to enable the Department to meet its strategic priorities and business needs and that training and development measures are linked to these priorities and needs. The skill base of the Department will be further enhanced by the recruitment in the near future of a number of graduates with qualifications in ICT, human resources, project management, accountancy and economics.
There are currently 50 officers who hold qualifications in economics and related disciplines, 27 who hold qualifications in accountancy and related disciplines, 31 who hold qualifications in business and related disciplines and 29 officers who hold a legal qualification.
The following tables provide a breakdown of the level of qualifications held and the grades of the individuals with the relevant accountancy, economic or legal qualifications:
|
*Qualification |
Accountancy |
Economics |
Legal |
Business |
|
Cert |
4 |
18 |
4 |
5 |
|
Diploma and HDP |
4 |
8 |
13 |
5 |
|
Degree |
5 |
12 |
7 |
15 |
|
Masters |
0 |
12 |
4 |
6 |
|
**Other/Professional |
14 |
0 |
1 |
0 |
|
Total |
27 |
50 |
29 |
31 |
*Some Officers carry more than 1 qualification.
**For example Barrister or Fellow of the Institute of Actuaries.
|
Grade |
Qualification |
Accountancy |
Economics |
Legal |
Business |
|
Secretary General |
Diploma |
1 |
|||
|
Degree |
1 |
||||
|
Masters |
1 |
||||
|
Assistant Secretary |
Diploma |
1 |
|||
|
Degree |
1 |
||||
|
Masters |
2 |
||||
|
Principal Officer |
Cert |
1 |
|||
|
Diploma |
2 |
7 |
2 |
||
|
Degree |
4 |
2 |
|||
|
Masters |
4 |
2 |
3 |
||
|
Other/Professional |
2 |
||||
|
Assistant Principal |
Cert |
2 |
12 |
4 |
3 |
|
Diploma |
2 |
3 |
5 |
1 |
|
|
Degree |
3 |
10 |
3 |
8 |
|
|
Masters |
4 |
1 |
2 |
||
|
Other/Professional |
9 |
1 |
1 |
||
|
Higher Executive Officer |
Cert |
1 |
2 |
1 |
|
|
Diploma |
3 |
1 |
|||
|
Degree |
2 |
4 |
|||
|
Masters |
1 |
||||
|
Other/Professional |
3 |
||||
|
Administrative Officer |
Cert |
2 |
|||
|
Degree |
1 |
||||
|
Masters |
1 |
1 |
|||
|
Executive Officer |
Cert |
1 |
1 |
||
|
Diploma |
1 |
1 |
|||
|
Totals |
27 |
50 |
29 |
31 |
114 Deputy Tom Fleming asked the Minister for Jobs, Enterprise and Innovation if he will outline, in tabular form, the total number and names of countries that Ireland has export or import trade with; the types of goods and appliances in exports or imports with each country; and the total cost in exports or imports for each category of goods and appliances. [25845/12]
While it is not feasible to provide the volume of data sought by the Deputy, the CSO publishes its very comprehensive "Trade Statistics" report on a monthly basis. This report includes Imports and Exports classified by country and details of the main goods involved, for current month and year-to-date.
The latest CSO Trade Statistics report relates to January 2012. The December 2011 publication however, shows data for the whole year of 2011 and allows for comparison with the 2010 data which may be of interest to the Deputy. This comprehensive CSO data for the full year of 2011 can be accessed at: http://www.cso.ie/en/media/csoie/releasespublications/documents/ externaltrade/2011/trade_dec2011.pdf.
My Department makes very useful summary trade data available at the following website address: http://www.djei.ie/trade/bilateral/irelandstradeperformancetables.pdf. This includes the total value of Ireland’s imports and exports from 2004-2011, information on Ireland’s top 10 trading partners and Ireland’s top merchandise export countries and categories.
115 Deputy Olivia Mitchell asked the Minister for Jobs, Enterprise and Innovation if, in view of the EU’s proposal for a regulation on statutory audits of public interest companies amending Directive 2006/43/EC, he has considered the likely disincentive effect on Foreign Direct Investment and particularly international financial services, considering that Irish subsidiaries of companies based outside the EU may have to appoint auditors other than those employed for their corporate headquarters or for their other international operations, and the mounting number of international studies warning on the negative impact of key elements of Commissioner Barnier’s proposals on audit costs, independence and on audit quality; and if he will make a statement on the matter. [25923/12]
Officials of my Department are participating in negotiations in EU Council working groups both in respect of the proposal for a Regulation regarding statutory audit of public-interest entities, and the proposal for a Directive on statutory audits, to which it is linked.
The issues referred to by the Deputy are among those which have been raised in the context of the consultation which the Department has undertaken with stakeholders in respect of both draft EU instruments, which is assisting in informing Ireland's approach to these negotiations.
The Commission proposals were framed following the extensive consultation initiated by it in October 2010 on its Green Paper "Audit Policy: Lessons from the Crisis".
The negotiations on the proposals are at an early stage, and I believe that the final package of measures adopted should be reasonable and proportionate, and offer demonstrable prospects of successfully addressing the issues at which they are directed.
116 Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation his views on concerns raised that the introduction of the €50 fee to access the Workplace Relations Service might act as a barrier to those employees, of limited means, who have genuine grievances and reasons for accessing the new service. [25932/12]
I am considering the issue of whether a fee for making a complaint or appeal to the new Workplace Relations bodies, which will be established as part of the reform process, should be introduced. However, I have made no decision in this regard yet. I recently published a Blueprint which sets out, in considerable detail, how reform of the workplace relations structures and processes will be achieved. The document also provided a further opportunity for interested parties to contribute comments and feedback on the future design and operation of the State’s workplace relations structures including whether or not a charge should be introduced.
I indicated in the Blueprint that any fee introduced would be a modest administration fee somewhere in the region of €50. It would be configured in such a way as to encourage early resolution. For example one possibility would be that no fee would apply for the Early Resolution Service with the fee only being charged when a case progresses to a hearing. In addition any fee would likely take into account the considerable additional cost incurred by the state associated with the processing of paper based complaint forms. Therefore the fee may only apply to paper based complaints with a lesser or no fee applying to complaints submitted and processed online.
It is certainly not my intention that any fee introduced would act as a barrier to those employees, of limited means, who have genuine grievances and who wish to vindicate their rights under equality or employment legislation. I will be examining carefully the suggestions made and advice received on the issue of fees in response to the Blueprint document.
117 Deputy Michael Healy-Rae asked the Minister for Jobs, Enterprise and Innovation following on from his recent visit to Kerry, the action he will take to attract more new companies into County Kerry; if he has a clear programme of work for the next 12 months to ensure that jobs will be brought to County Kerry; and if he will make a statement on the matter. [25956/12]
IDA Ireland is an autonomous agency whose statutory obligation is the attraction of foreign direct investment (FDI) to Ireland and its regions.
Through its network of overseas offices IDA Ireland markets the linked hub locations of Killarney in South Kerry and Tralee in North Kerry for new FDI. Based on the strengths of the region, IDA Ireland is particularly targeting the ICT, International Financial Services and Globally Traded Business sectors. In addition, IDA Ireland is working closely with educational institutions and FÁS to develop the skill sets necessary to attract high value added employment to the county.
At the end of 2011 there were 12 IDA Ireland supported companies in Kerry employing 1,294 permanent staff.
One of the targets outlined in IDA's Strategy document "Horizon 2020" is that 50% of investments will be located outside of Dublin and Cork. It is acknowledged, however, that there is intense and continual international competition to win this FDI, which is mainly dominated by Metro City Regions with populations in excess of 1 million. Ireland has one Metro Region, the Greater Dublin area, so in order to achieve balanced regional development IDA Ireland focuses on promoting Gateway locations within each Region as the areas of critical mass and highlights the opportunities provided by Hub locations which are within commuting distances of these Gateways. In the final analysis, however, it is the investor who decides where to locate.
The Government's Action Plan for Jobs has set a target of supporting the creation of 100,000 net new jobs over the period 2012 to 2016, with the longer term objective of having 2 million people at work by 2020. I recently announced the progress which has been made in this regard so far this year. Meanwhile, I am already getting suggestions and proposals in relation to preparing the Action Plan for 2013, which I am examining and will bring to Government later this year.
As the Deputy is no doubt aware, the "Succeed in Ireland" initiative, which aims to create 5,000 jobs within five years was launched on 8th March 2012. The launch represents the delivery of a key Q1 commitment in the Action Plan for Jobs 2012, and also represents a concrete example of the Government's commitment to make Ireland the best small country in the world in which to do business.
The aim of the Succeed in Ireland initiative is to incentivise people around the world, including our diaspora, to be our eyes and ears on the global stage and help deliver new jobs and investment. This is an innovative scheme that offers a new channel to reach thousands of small to medium enterprises around the world and spread the word about Ireland's strong reputation as a location for business.'
The initiative will complement IDA's existing work in securing FDI from large multinationals, companies at second tier and emerging business companies, and will form a key part of the Government's strategy to deliver investments to regional locations.
118 Deputy Regina Doherty asked the Minister for Social Protection if the probe into pension fund administration fees has been completed; when the recommendations will be made public; and if she will make a statement on the matter. [25716/12]
I initiated a study on the level and transparency of pension charges associated with different forms of private pension arrangements because of concerns that pensions schemes and their members have in relation to the level of charges applied to their schemes and the lack of transparency around some of these charges.
My Department, in conjunction with the Pensions Board and the Central Bank, and with assistance from PricewaterhouseCoopers, are undertaking the study which will include consideration of the charges and expenses associated with funded defined benefit pension arrangements; defined contribution occupational pension schemes (insured and non-insured) including additional voluntary contributions in public sector schemes, retirement annuity contracts,Personal Retirement Savings Accounts (PRSAs) and buy out bonds.
The study will provide information which has not been available previously and will provide an initial benchmark in relation to the level and transparency of charges. This will be important in informing policy and in determining whether any further measures are required.
The report is currently being finalised and I expect it to be with me this Summer.
119 Deputy Michael Healy-Rae asked the Minister for Social Protection if a Monetary Advice and Budgeting Service will be opened in County Kerry; and if she will make a statement on the matter. [25954/12]
The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, has an office in Tralee, which serves all of County Kerry. MABS outreach services are also provided in Killarney and Listowel.
A proposal to open a shared office for MABS and the Citizens Information Services in Killarney town is at an advanced stage of development.
120 Deputy Jack Wall asked the Minister for Social Protection the position regarding an application for rent allowance in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25690/12]
The person concerned has been awarded their rent supplement entitlement in full. All arrears will be paid accordingly at the end of the month.
121 Deputy Noel Harrington asked the Minister for Social Protection the position regarding both supplementary welfare and jobseeker’s allowance appeals in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [25695/12]
The Social Welfare Appeals Office has advised me that appeals by the person concerned were registered in that office on 29th February 2012 and 5th April 2012 respectively. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office and the two cases have been referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
122 Deputy Dara Calleary asked the Minister for Social Protection when she will report on the outcome of the review of community employment schemes operated by companies (details supplied) in County Mayo with particular emphasis on current and future funding of the schemes; and if she will make a statement on the matter. [25696/12]
A review of the financial resources of all CE Schemes was undertaken following the reductions in the Training and Materials Grant on CE, as announced in Budget 2012. To ensure a standard approach, templates were developed and issued to all CE projects to complete. Discussions were held between local CE Sponsors and the Departmental Officers responsible for the scheme under local management.
This review is looking at the income and funding of sponsoring organisations in terms of their ability to continue to deliver the programme. It's also looking at organisations that receive funding from a multiplicity of state agencies. Alternative sources of support are being examined, particularly with reference to funding from other state agencies to avoid duplication.
The review will also seek to establish if income is generated by scheme activity and the potential for the utilisation of these funds to cover project costs.
Following a detailed examination of the recommendations of this review, the Department will be in a position to ensure the best outcome for CE schemes and their participants, taking account both of the large amounts of money spent on CE schemes and the valuable contribution that they make to their communities.
The review is currently nearing completion and recommendations will be considered by the Department. CE Schemes will be advised of the outcome of the review directly.
123 Deputy Denis Naughten asked the Minister for Social Protection if a person (details supplied) in County Roscommon is eligible to partake in a community employment scheme; and if she will make a statement on the matter. [25697/12]
The Community Employment (CE) Scheme has two options, namely:
Part Time Integration Option, which is a CE option with a maximum duration of 1 year and is for persons who have been in receipt of qualifying payment for 12 months or more.
Part Time Job Option, which is a CE option with a maximum duration of 3 years and is for persons who have been in receipt of qualifying payments for a period of 36 months or more. Contracts are subject to renewal, which is not automatic.
With effect from the 3rd April 2000, participation on CE is limited, in a person's lifetime to:
A total of 3 years (156 weeks) for persons under 55 years of age.
A total of 6 years (312 weeks) for persons aged between 55 years and 65.
The person concerned is eligible to apply for a position on a Community Employment Scheme and should be advised to contact his local Employment Services office to register and progress his application.
124 Deputy Sandra McLellan asked the Minister for Social Protection if she will expedite a carer’s allowance application which was received last September in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [25698/12]
I confirm that the department is in receipt of an application for carer's allowance from the person in question. On completion of the necessary investigations relating to all aspects of her case a decision will be made and the person concerned will be notified directly of the outcome.
125 Deputy Sandra McLellan asked the Minister for Social Protection further to Parliamentary Question No. 580 of 18 April 2012 the reason one month later her Department still has not progressed past applications from July 2011; the further reason she quotes an average time of 28 weeks to process applications when this clearly is not the case; and if she will make a statement on the matter. [25699/12]
As already stated, the Department is committed to delivering the best possible service to its customers. The average time taken to award a carer's allowance application is 28 weeks at present, however individual cases may vary. Some will be processed more quickly, others will take longer. In particular, where a customer requests a review of an initial decision to refuse an application, this will take additional time.
In determining entitlement to the allowance, in certain cases unavoidable time lags are involved in making the necessary investigations and inquiries to enable accurate decisions to be made. Delays can also arise if those applying for the allowance are not in a position to supply all the necessary information in support of their claim.
The staff and other resources available to the Department are regularly reviewed with a view to ensuring claims are processed as quickly as possible. I acknowledge that the time taken to process carer's allowance claims is not satisfactory but I am satisfied that the Department is taking appropriate steps to resolve the situation.
126 Deputy Jack Wall asked the Minister for Social Protection the position regarding an appeal against the decision to refuse an application for invalidity pension in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25707/12]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 4 October 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office and the case has been referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
127 Deputy Jack Wall asked the Minister for Social Protection the position regarding an application for rent allowance in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25709/12]
In order to qualify for rent supplement, the person concerned has been requested to reduce the rent to the appropriate limit for a single person in self-contained accommodation. The person concerned has no entitlement to rent supplement at the higher limit on the basis of the information that has been provided.
128 Deputy Brendan Griffin asked the Minister for Social Protection when a review of disability allowance will be completed in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [25734/12]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 20 September 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
129 Deputy Jim Daly asked the Minister for Social Protection if she is satisfied with a system of adjudicating on welfare applications that has allowed an application for carer’s allowance to run for 17 months to date and still awaits a final decision to be made; if she will intervene in the case of a person (details supplied) in County Cork to have a decision expedited; and if she will make a statement on the matter. [25736/12]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 23 August 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 27 November 2011 and assigned to an Appeals Officer 14 February 2012. The case is currently under consideration and the person concerned will be contacted within the next week with the outcome of her appeal.
I am advised by the Social Welfare Appeals Office that, from about early 2009 the number of appeals received by that Office began to dramatically increase and by 2011 had more than doubled from an average of 15,000 per year to 32,000. The pressure placed on the office by this rapid increase in workload has impacted on the length of time taken to process appeals.
In an effort to reduce the processing times, the Department appointed 12 additional Appeals Officers between 2010 and 2011. In addition, a further 10 Appeals Officers, formerly employed by the Community Welfare Services (CWS) of the Health Service Executive joined the Office as part of the integration of the CWS appeals services into the Social Welfare Appeals Office. This brought the total number of Appeals Officers to 39. In addition to this the Office has improved its business processes and IT support.
As a result, based on figures for the first quarter of 2012, the average waiting time for appeals dealt with by summary decisions was 22.4 weeks and 40.9 weeks for those that required an oral hearing. The comparable times for 2011 were 25 weeks and 52.5 weeks.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
130 Deputy Brendan Griffin asked the Minister for Social Protection if a decision has been made on an oral hearing on a disability allowance application in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [25739/12]
I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all the available evidence, including that adduced at oral hearing, allowed the appeal of the person concerned.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
131 Deputy Dara Calleary asked the Minister for Social Protection the position regarding domiciliary care grant appeal in respect of a person (details supplied) in County Mayo. [25740/12]
I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all the evidence, including that adduced at oral hearing, disallowed the appeal of the person concerned.
Under Social Welfare legislation, the decision of the Appeals Officer is final and conclusive and may only be reviewed by the Appeals Officer in the light of new evidence or new facts.
Following the submission of additional evidence the Appeals Officer has agreed to review the case. The person concerned will be contacted when the review of her appeal has been finalised.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
132 Deputy Jack Wall asked the Minister for Social Protection the position regarding an appeal in respect of a person of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25741/12]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 14 December 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office and the case has been referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
133 Deputy Barry Cowen asked the Minister for Social Protection when a person (details supplied) in County Westmeath may expect a decision on an application for carer’s allowance. [25752/12]
I am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all the evidence, disallowed the appeal of the person concerned by way of summary decision.
Under Social Welfare legislation, the decision of the Appeals Officer is final and conclusive and may only be reviewed by the Appeals Officer in the light of new evidence or new facts.
Following the submission of additional evidence the Appeals Officer has agreed to review the case. The person concerned will be contacted when the review of her appeal has been finalised.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
134 Deputy Willie O’Dea asked the Minister for Social Protection if any support has been put in place to assist those who have signed up to new rental agreements, who have now been advised of the reductions in the maximum cap on the rent permitted, leading to these persons having to move, and who will now lose the deposits previously awarded through the Health Service Executive community welfare officers leaving them without a deposit for alternative lower-priced rented accommodation; and if she will make a statement on the matter. [25753/12]
The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. There are currently approximately 95,000 persons in receipt of rent supplement, with €436m provided in 2012.
New maximum rent limits came into force on 1 January 2012. Most claims are reviewed every six months, or when an existing lease expires. Where a claim is under review and the rent is above the new maximum limit the customer is being asked to contact the landlord to renegotiate the rent. Where a landlord does not agree to reduce the rent to the new rates departmental officials will discuss the options open to the tenant up to and including seeking alternative accommodation. Departmental officials will support the tenant as s/he seeks alternate accommodation. An exceptional needs payment (ENP) may be issued for a rent deposit in cases where the applicant has to seek alternate accommodation and is unable to fund a deposit out of their own resources. There is no automatic entitlement to this payment and each application is based on the particular circumstances of the case and at the discretion of the officer administering the SWA scheme.
135 Deputy Tom Fleming asked the Minister for Social Protection when a decision will issue on an illness benefit appeal in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [25754/12]
Payment of illness benefit, to the person concerned, was disallowed by a Deciding Officer following an examination by a Medical Assessor of the Department who expressed the opinion that she was capable of work. An appeal was registered and the Social Welfare Appeals Office has advised me that, in accordance with statutory requirements, the Department was asked for the documentation in the case and the Deciding Officer's comments on the grounds of the appeal. In that context, it was intended to carry out an examination by another Medical Assessor. However, the Medical Referral and Assessment Section was unable to arrange a second medical examination, in this case, as the person concerned discontinued submitting medical evidence. Payment of illness benefit was made to 24 August 2011 and the last medical certificate received from the person concerned was dated 03 August 2011. In the circumstances the appeal has been withdrawn. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
136 Deputy Finian McGrath asked the Minister for Social Protection the position regarding proposals in relation to the domiciliary care allowance (details supplied). [25769/12]
As the Deputy is aware, eligibility for domiciliary care allowance (DCA) is determined primarily by reference to the degree of additional care and attention required by the child, rather than to the type of disability involved. Each application is assessed on an individual basis taking account of the evidence submitted. No specific condition or disability rules a child in or out of qualifying for the allowance.
Applications for DCA are assessed on a case by case basis by one of the Department's medical assessors, all of whom are fully qualified medical practitioners who have training/experience in human disability evaluation. The medical assessor's opinion is based on the information furnished as part of the application process which includes details of the additional care and attention required by the child, as outlined by the parent/guardian and medical details provided by the child's GP. Any additional information the parent/guardian considers relevant to the application and wishes to include is also reviewed. This could include, for example, consultant's reports, reports from a community health doctor or a copy of the needs assessment carried out by the HSE.
It is important to note that the normal ages of attainment data for children up to 4 years are provided to assist the medical assessor in his/her assessment. It is not a scale which determines eligibility or otherwise. Reports from child and adolescent psychiatrists, psychologists or occupational therapists usually provide information on the child's individual developmental status on a percentile basis. Whereas no data provided by the Department on normal age of attainment for children over 4 years of age or adolescents, should a medical assessor consider it helpful, there is a wealth of reference material available in the medical literature.
Prior to the transfer of the DCA scheme from the HSE in 2009, an expert medical group examined the scheme and made recommendations on how it should operate within the Department. These recommendations included the need for a review process and the minimum term that should apply to such reviews. DCA cases are routinely reviewed to ensure that all the conditions for receipt of the payment continue to be met. Scheduled reviews, on the recommendation of a medical assessor, are based on the prognosis of the child's disability and how their care needs may change over time. Customers who are reviewed are asked to provide relevant up-to-date medical evidence and details of the additional care needs of their child versus a child of the same age who doesn't have his or her disability. This information is assessed by a medical assessor and a decision is made based on the medical opinion they provide. Where payment is stopped as a result of a review, the customer is invited to submit any further information he or she may wish to have considered and that information is further examined and/or he or she may appeal the decision directly to the Social Welfare Appeals office.
I recently announced that the Department would shortly be undertaking a policy review of the scheme. This review will look at, amongst other things, the current application and assessment process and identify any potential improvements to the delivery of service to customers that can be implemented while retaining an efficient and effective operational model. The issues raised by the Deputy can be considered as part of the review.
137 Deputy Colm Keaveney asked the Minister for Social Protection when payment of redundancy entitlements will issue in respect of a person (details supplied) in County Galway. [25804/12]
A redundancy lump sum claim in respect of the person concerned has been awarded and payment will issue in the coming weeks.
138 Deputy Tony McLoughlin asked the Minister for Social Protection the reason a person (details supplied) in County Mayo was refused carer’s allowance; and if she will make a statement on the matter. [25806/12]
140 Deputy Tony McLoughlin asked the Minister for Social Protection the reason a person (details supplied) in County Mayo was refused carer’s allowance; and if she will make a statement on the matter. [25830/12]
I propose to take Questions Nos. 138 and 140 together.
I confirm that the department is in receipt of an application for carer's allowance from the person in question. Eligibility for carer's allowance cannot be automatically transferred from one family member to another. Each application is assessed on its individual circumstances in relation to the eligibility criteria for the receipt of the payment. It is also normal policy in these cases to review the continuing requirement of the care recipient for full-time care and attention on medical grounds, where that condition has not recently been assessed. On completion of the necessary investigations relating to all aspects of his claim a decision will be made and the person concerned will be notified directly of the outcome.
139 Deputy Dara Calleary asked the Minister for Social Protection the position regarding an appeal in respect of a person (details supplied). [25819/12]
The Social Welfare Appeals Office has advised me that the appeal from the person concerned was referred to an Appeals Officer who proposes to hold an oral hearing in this case. There has been a very significant increase in the number of appeals received by the Social Welfare Appeals Office since 2007 when the intake was 14,070 to 2010 and 2011 when the intake rose to 32,432 and 31,241 respectively. This has significantly impacted on the processing time for appeals which require oral hearings and, in order to be fair to all appellants, they are dealt with in strict chronological order. While every effort is being made to deal with the large numbers awaiting oral hearing as quickly as possible, it is not possible to give a date when the person's oral hearing will be heard, but he will be informed when arrangements have been made. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
141 Deputy Bernard J. Durkan asked the Minister for Social Protection if supplementary welfare allowance or an exceptional needs payment will issue to a person (details supplied) in County Kildare; and if she will make a statement on the matter. [25844/12]
The supplementary welfare allowance claim from the person concerned has been awarded and is currently in payment.
142 Deputy Terence Flanagan asked the Minister for Social Protection if she will deal with a matter (details supplied) regarding the FÁS work placement programme; and if she will make a statement on the matter. [25847/12]
The work placement programme (WPP) was announced by Government on 27th May 2009. By June 2009 it was operationalised and rolled out nationally. Under the programme, employers apply to offer ‘work placements', for a maximum duration of nine months within their business/body, and those who are unemployed can apply for these placements. A placement is unpaid and voluntary.
The aim of the WPP is to provide unemployed people with the opportunity to work and gain experience so that they can keep their skills fresh and relevant to the job market. For graduates, the aim is to give them the opportunity to apply their skills in a work situation and to get real work experience to add to their qualification.
Anyone who is unemployed is eligible to apply for the WPP, including people who are not in receipt of any social welfare payment. For those in receipt of a social welfare payment, they may take up the placement, under certain conditions. People who are currently in receipt of any of the following payments may apply:
Job Seeker's Allowance.
Job Seeker's Benefit.
Disability Allowance.
Blind Pension.
Invalidity Pension.
Illness Benefit.
Lone parents allowance.
Deserted Wives Benefit.
Widow/Widower's Pension.
Supplementary Welfare Allowance (SWA).
However, to be eligible to retain their payment while on a placement, they must have been unemployed and in receipt of some form of social welfare payment for at least three months.
The JobBridge National Internship Scheme is open to people who are unemployed and who are in receipt of either Job Seeker's Benefit, Job Seeker's Allowance or sign for Social Insurance Credit for three months (78 days) or more in the last six months. The Work Placement Programme is open to people in receipt of broader range of payments, and is open to those not in receipt of payments. It is not, however, open to people who are in either full employment or employed in a part-time capacity.
Anyone interested in seeking work in their area of their qualification should in the first instance arrange a visit to their local employment services office. There they can meet with an employment services offer who can discuss in more detail, the full range of options open to someone who is seeking work in a specific field.
143 Deputy Pat Breen asked the Minister for Social Protection when a decision on a farm assist appeal will issue to a person (details supplied) in County Clare; and if she will make a statement on the matter. [25850/12]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 28th February 2012. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When received, the appeal in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
144 Deputy James Bannon asked the Minister for Social Protection the position regarding an appeal in relation to an illness benefit application in respect of a person (details supplied) in County Westmeath; and if she will make a statement on the matter. [25865/12]
Payment of illness benefit, to the person concerned, was disallowed by a Deciding Officer following an examination by a Medical Assessor of the Department who expressed the opinion that he was capable of work. An appeal was registered on 5th March 2012 and the Social Welfare Appeals Office has advised me that, in accordance with statutory requirements, the Department was asked for the documentation in the case and the Deciding Officer's comments on the grounds of the appeal. In that context, an examination by another Medical Assessor will be carried out. The person concerned will be notified when arrangements for the examination have been completed.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
145 Deputy James Bannon asked the Minister for Social Protection the position regarding an appeal for carer’s allowance in respect of a person (details supplied) in County Longford; and if she will make a statement on the matter. [25866/12]
The above named was refused carer's allowance on grounds that the care recipient is not so disabled as to require full-time care and attention as prescribed in regulations. On 28 March 2012, she was notified of this decision and the reason for it. There is no record to date of an appeal having been lodged by the person in question.
146 Deputy James Bannon asked the Minister for Social Protection the position regarding an application for invalidity pension in respect of a person (details supplied) in County Leitrim; and if she will make a statement on the matter. [25868/12]
Invalidity pension is a payment for people who are permanently incapable of work because of illness or incapacity and who satisfy the contribution conditions. An application for invalidity pension has been received for the person concerned. In order to establish medical suitability a diagnostic report has issued to the customer concerned to be completed by his general practitioner or other treating physician. It is important for a claimant for invalidity pension to ensure that all relevant and up-to-date supporting medical evidence is submitted to the Department with this diagnostic report. On receipt of the completed report (and supporting evidence, if applicable) medical suitability will be determined and the person concerned will be notified of the decision by a deciding officer.
147 Deputy James Bannon asked the Minister for Social Protection the position regarding an application for carer’s allowance in respect of a person (details supplied) in County Leitrim; and if she will make a statement on the matter. [25870/12]
The person concerned applied for carer's benefit on 20 March 2012. Her claim was refused on the grounds that the care recipient is not so disabled as to require full-time care and attention as prescribed in the carer's benefit legislation. On 18 May 2012 she was notified of this decision and the reasons for it. This enquiry is being accepted by carer's benefit section as a request for a review of the decision. A deciding officer will review this case shortly and the person in question will be notified of the outcome in due course.
148 Deputy Dominic Hannigan asked the Minister for Social Protection the formula her Department uses to calculate the market rents rate for County Meath; and if she will make a statement on the matter. [25874/12]
The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 95,000 persons in receipt of rent supplement, with €436m provided in 2012.
New maximum rent limits came into force on 1 January 2012. These new limits are in line with the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved whilst at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.
For all counties, major urban population centres were tested as part of the review to ensure that rent supplement applicants can access temporary housing arrangements whilst seeking employment opportunities. In the case of Meath the following areas were isolated for consideration: Ashbourne; Athboy; Bettystown; Dunshaughlin; Navan; Trim; Ratoath; Kells; Laytown; Enfield; and the rest of Meath county as a whole. Current information shows there is accommodation available at the new maximum rent limits in county Meath.
The focus of the review was primarily based on ensuring an adequate level of housing stock is available, using the 40th percentile as the basis for establishing rent limits. The full report of the review of maximum rent limits is available on the Department's website at the attached link: http://www.welfare.ie/EN/Policy/ResearchSurveysAndStatistics/Pages/rentreview2011.aspx.
150 Deputy Pat Breen asked the Minister for Social Protection the reason a person (details supplied) in County Clare has been refused payment; and if she will make a statement on the matter. [25931/12]
The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 11th January 2012. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
151 Deputy Brian Walsh asked the Minister for Social Protection if an application for carer’s allowance will be expedited in respect of a person (details supplied) in County Galway; and if she will make a statement on the matter. [25933/12]
I confirm that the department is in receipt of an application for carer's allowance from the person in question. In the interests of fairness and equity, applications for carer's allowance are processed, as far as possible, in order of the date they were received in the Department.
On completion of the necessary investigations relating to all aspects of her case a decision will be made and the person concerned will be notified directly of the outcome.
152 Deputy Jack Wall asked the Minister for Social Protection if there are any exemption in relation to the qualifying criteria for Tús schemes (details supplied); and if she will make a statement on the matter. [25935/12]
The purpose of Tús is to focus on those people who are long-term unemployed and who may not have engaged in activation activity for some time. For this reason, eligibility for both participatory and supervisory positions on Tús is confined to those on the Live Register for at least 12 months and in receipt of jobseeker's allowance. These provisions are to ensure a targeted approach to those currently on the Live Register by breaking the cycle of unemployment and allowing the person improve their work readiness for return to the labour market.
While I appreciate that this can result in consequences for persons actively seeking work, I must balance this against the opportunities that are reserved for those who are in danger of becoming distant from the labour market. There are no exemptions and I have no plans to alter the eligibility criteria for Tús.
153 Deputy Finian McGrath asked the Minister for Arts, Heritage and the Gaeltacht further to Parliamentary Questions Nos. 328 and 329 of 15 May 2012, when and where the meeting with the proposers of the golf course took place, if he will state who the proposers are and who attended the meeting; and if he will make a statement on the matter. [25770/12]
154 Deputy Finian McGrath asked the Minister for Arts, Heritage and the Gaeltacht further to Parliamentary Questions Nos. 328 and 329 of 15 May 2012, if he will confirm that the categoric advice from officials in his Department to all previous Ministers was that a golf course in this location would not be in keeping with its special areas of conservation status; and if he will make a statement on the matter. [25771/12]
I propose to take Questions Nos. 153 and 154 together.
The meeting referred to in my previous reply is scheduled to take place on 28 May inListowel and I will accompanied by two officials from my Department. I understand that I will be meeting the owners of the land as well as an adviser. Any proposal that comes before me or my Department will be considered on its own merits. The provisions of European and National law relating to proposals for development within Special Areas of Conservation and Special Protection Areas have been outlined to the owners and to their advisers at various meetings with my predecessors and with officials over the past few years.
155 Deputy Michael McCarthy asked the Minister for Communications, Energy and Natural Resources the main findings of RTÉ’s report into Saorview and Saorsat provision in west Cork which he received on 16 May 2012; the actions he will take following the publication of the report; and if he will make a statement on the matter. [25701/12]
On 25 April as a result of issues raised during a topical debate on SAORVIEW coverage in Cork, I requested from RTÉ an overview report on coverage in Cork and I can confirm that a summary report in this regard has since been received from RTÉNL by my Department.
This summary concludes that in the Cork area there is a substantial increase in TV coverage as a result of the introduction of SAORVIEW and SAORSAT.
In relation to SAORVIEW I have been informed by RTÉNL that the SAORVIEW network in Cork covers 96% of the population. This means that in Cork, 96% of the population can upgrade to SAORVIEW and will receive RTÉ1, RTÉ2, TG4, TV3, 3e, RTÉ1+1, RTÉ News Now, RTÉ jr and 10 RTÉ radio channels. This is significantly higher than the current analogue TV coverage which is: 90% for RTÉ1 and RTÉ2, 80% for TG4 and 63% for TV3.
That said, I can confirm that RTÉNL is continuing to work on developing more detailed information on areas where coverage issues have been identified and my Department will continue to liaise with RTÉNL to ensure that such information is made available at a local level.
The availability of the RTÉ SAORSAT satellite service increases TV coverage to 100% in all areas. SAORSAT broadcasts all the SAORVIEW TV channels except the two TV3 channels — TV3 and 3e. In this regard, it is important to note that TV3 is a commercial broadcaster and, as such, a decision to use SAORSAT will be a commercial decision for TV3.
RTÉ is not required to provide SAORSAT but has chosen to develop this unique and innovative solution to ensure a ‘free to air' TV service is available to 100% of the country.
156 Deputy Ann Phelan asked the Minister for Communications, Energy and Natural Resources the position regarding the provision of broadband services for rural areas in County Carlow; and if he will make a statement on the matter. [25730/12]
Ireland's telecommunications market has been liberalised since 1999 and since then has developed into a well-regulated market, supporting a multiplicity of commercial operators, providing services over a diverse range of technology platforms. Details of broadband services available on a county-by-county basis can be found on the Commission for Communications Regulation's (ComReg) website at www.callcosts.ie.
The Government has undertaken a number of initiatives to bring broadband to those parts of the country where operators have been unable to offer services on a commercial basis. In the case of one such intervention, namely the National Broadband Scheme (NBS), services are available since October 2010 from the NBS service provider, 3, to persons with a fixed residence or fixed business in each of the 1,028 Electoral Divisions (ED) designated to be covered under the Scheme. That includes 6 EDs in County Carlow, which I have listed in the table below:
|
EDs covered by the NBS in County Carlow |
|
|
Clonmore |
ED 17014 |
|
Coonogue |
ED 17015 |
|
Hacketstown |
ED 17022 |
|
Haroldstown |
ED 17023 |
|
Ridge |
ED 17043 |
|
Tiknock |
ED 17048 |
The Rural Broadband Scheme (RBS) was launched last year in recognition of the fact that despite the widespread availability of broadband throughout Ireland, there still remained individual premises that were unable to receive broadband provision, due to technical difficulties such as line of sight issues. This Scheme, which is being rolled out this year, is aimed at making a basic broadband service available to those individual un-served premises in rural non-NBS areas who wish to avail of such services.
The combination of private investment and State interventions means that Ireland will meet the EU Commission's Digital Agenda for Europe target of having a basic broadband service available to all areas by 2013.
The Government accepts that the widespread availability of high speed broadband is a key requirement in delivering future economic and social development. With basic broadband services now widely available across Ireland, the challenge is to accelerate the roll out of high speed services. The Next Generation Broadband Taskforce (NGBT), which I convened last summer, has had an important role to play in this regard.
I am pleased to inform the Deputy that the Taskforce report has now been published. The report notes that by 2015, over 50% of the population will have access to high speed broadband services with speeds in excess of 70 Mbps. The report also highlights areas where Government and industry can work together to facilitate the roll out of high speed services across Ireland, and particularly in areas where the case for commercial investment is marginal.
Following on the publication of the Taskforce report, I have also launched a 4 weekconsultation process which can be accessed at the following link; http://www.dcenr.gov.ie/Communications/Communications+Policy/Report+of+the+Next+ Generation+Broadband+Taskforce+and+Consultation.htm. Any submissions or observations can be made electronically to nextgenerationbroadband@dcenr.gov.ie or tweet to @BroadbandPlan12 by close of business on Thursday 31 May 2012. The purpose of this consultation is to provide further input to this important policy area. Thereafter, it is my intention to bring proposals to Government for a National Broadband Plan for Ireland. This plan will build on the recent excellent progress made and be informed by the findings of the Taskforce and subsequent consultation.
157 Deputy Joanna Tuffy asked the Minister for Communications, Energy and Natural Resources the steps being taken to ensure that broadcasting both public and private is fair, objective and impartial; and if he will make a statement on the matter. [25800/12]
Fairness and impartiality is a critical component of broadcasting; audiences and citizens deserve to have access to programme material that is objective and free from bias, and particularly so when the broadcaster is publicly funded, as in the case of RTÉ and TG4.
Since the introduction of the Broadcasting Act 2009, there is a single regulator in place, the Broadcasting Authority of Ireland (BAI), which is empowered to investigate complaints and to enforce a number of codes, including a Code of Impartiality and Fairness.
Recent events have unsurprisingly and correctly led to an unprecedented focus on journalistic practices and standards in RTÉ. The nature and extent of the failures exposed in RTÉ's investigation of the accusations against Fr Reynolds are such that the Broadcaster has had very serious questions to answer around how it conducts its business, and how the entire organisation delivers on its critical public service broadcasting mandate.
At a meeting with the Board of RTÉ on the 8th of May, I requested that I be provided with a report detailing the range of actions that RTÉ had already taken and, in addition, was proposing to take to ensure that the breaches and failures which occurred in this case will never happen again. I have also asked that RTÉ reports on a quarterly basis on progress in implementing these reforms and improved practices. My Department has a key oversight role in this regard. The first of these reports was received on Tuesday 15th of May, and my Department is following up on the implementation process. RTÉ faces a long road in terms of regaining public confidence in its output, and much work will be required to rebuild its reputation for high quality investigative journalism, a reputation that was hard won in the first place.
The positive response taken by RTÉ to the recommendations of the BAI and Horgan Reports and the measures already instigated are the first but necessary steps for RTÉ in its difficult journey towards rebuilding public trust.
Also, I note that the BAI has recently published a new draft Code of Impartiality and Fairness, which sets out a number of improved rules for broadcasters when it comes to the treatment of news and current affairs. The Consultation has closed for submissions, and I look forward to the publication of a final Code later this year as a further step to reinforce the measures already in place to ensure the objectivity and impartiality of broadcasting.
158 Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the amount that was spent on the better energy homes scheme in 2011; if he will provide a breakdown of the number of projects funded by category and sub total cost; the projected spend and number of projects in each category in 2012; and if he will make a statement on the matter. [25807/12]
159 Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the amount that was spent on the warmer homes scheme in 2011; if he will provide a breakdown of the number of projects funded by category and sub total cost; the projected spend and number of projects in each category in 2012; and if he will make a statement on the matter. [25808/12]
I propose to take Questions Nos. 158 and 159 together.
The Sustainable Energy Authority of Ireland (SEAI) administers the Better Energy Programme. The table below details the number of energy efficiency measures delivered and grants paid from the Exchequer under the Better Energy programme in 2011 and 2012:
|
2011 |
Better Energy : Homes |
Better Energy : Warmer Homes |
|
Homes Completed |
47,594 |
20,388 |
|
Measures Completed |
138,319 |
N/A |
|
Total Spend (€m) |
€57.586 |
€21.430 |
|
2012 (Jan-April) |
Better Energy : Homes |
Better Energy : Warmer Homes |
|
Homes Completed |
12,735 |
1,228 |
|
Measures Completed |
35,365 |
N/A |
|
Total Spend (€m) |
€14.611 |
€1.343 |
I will arrange for the SEAI to forward a more detailed breakdown of the measures delivered under the Better Energy Programme as it has not been possible to provide this level of detail in the time frame provided.
Better Energy Homes is a demand-led programme. Since commencement in March 2009 the scheme has disbursed over €133m in grants and supported the installation of over 300,000 such measures in over 123,000 homes.
Exchequer funding of €76.146 million has been allocated to the Better Energy Programme in 2012, which is projected to deliver 433GWh in energy savings. The Better Energy Programme includes Better Energy Homes, Warmer Homes and Better Energy Workplaces. Better Energy Homes provides financial assistance to householders who wish to improve the energy performance of their homes. Fixed grants are provided towards the cost of a range of measures including attic insulation, wall insulation, heating systems upgrades, solar thermal panels and accompanying BER.
Better Energy: Warmer Homes delivers a range of energy efficiency measures to households that are vulnerable to energy poverty. The scheme is managed by the SEAI and delivered through a range of Community Based Organisations (CBOs), augmented by a panel of private contractors in order to ensure national coverage.
Within the Better Energy Programme €17.148 million has been allocated for Better Energy: Warmer Homes in 2012; and is projected to deliver energy efficiency measures to 17,000 homes. Energy efficiency upgrades have been delivered to 1,228 homes under the scheme from the start of the year to 30 April amounting to €1.343 million in funding from the Exchequer. As is normal in the case of the Warmer Homes Scheme, expenditure is expected to intensify in the latter half of the year. Since commencement of the Programme in 2000, energy efficiency upgrades have been delivered to 81,616 homes amounting to €82.773 million in Exchequer funding.
160 Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the action that has been taken on the recommendation of the National Competitiveness Council in the Ireland’s Competitiveness Challenge 2011 report to phase out subsidies for peat-generated electricity as funded through the public service obligation levy; if any consideration has been given to transferring these funds to projects such as the better energy homes scheme or warmer homes scheme; and if he will make a statement on the matter. [25811/12]
The Public Obligation Service (PSO) levy has been in place since 2001 and is the support mechanism for peat generation and the development of renewable electricity. The levy is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by the three peat stations, from renewable energy sources and from the gas fuelled plant commissioned in 2005 to ensure adequate electricity supply. Peat-fired electricity plants are supported as they contribute to security of supply through the use of indigenous fuels. The levy has supported the connection of approximately 2,000 MW of renewable energy, mostly wind, to the electricity grid over the last decade. The PSO also supports the output of two gas fuelled power plants built in 2005 to secure much needed generation capacity at the time.
The Commission for Energy Regulation determines annually the amount of the PSO levy, which is a charge on all electricity customers. Its legal basis and method of calculation are set out in the regulations made under the Electricity Regulation Act 1999.
In general terms the cost of the PSO levy to the consumer tends to be low or zero when international gas and oil prices are high, as in these cases the market price adequately rewards renewable and conventional generation including the peat stations.
In line with the Programme for Government commitment to review and reform the PSO levy, I have requested my Department to review the operation of the peat PSO from a cost efficiency perspective. This review is currently underway. I would clarify for the Deputy that funding for Exchequer programmes, such as Better Energy or Warmer Homes schemes, would not arise as a result of savings accrued from changes in the PSO. The PSO levy is a charge to all electricity customers. The levy covers inter alia the additional costs incurred by electricity suppliers, such as Electricity Ireland, Airtricity and Bord Gáis Energy, in sourcing, and ESB Power Generation in producing, a proportion of their electricity from peat or renewable generators. Any reduction in the PSO year on year results in a reduction in the charge levied on all electricity customers.
161 Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the action that has been taken on the recommendation of the National Competitiveness Council in the Ireland’s Competitiveness Challenge 2011 report to revise the REFIT scheme to phase out price supports for onshore wind projects; and if he will make a statement on the matter. [25812/12]
The feed in tariff or REFIT scheme underpins investment in renewable energy to meet Ireland's legally binding renewable target, by providing sufficient certainty to developers to finance projects through the guarantee of a minimum price for wind exported to the grid over a 15 year period. Such schemes are common across EU Member States.
The original REFIT scheme for which state aid approval was obtained in 2007 has supported a significant expansion in wind energy in a relatively short period. In March 2012, my Department launched the next phase of the REFIT scheme for onshore wind, known as REFIT 2.
While similar in many respects to the first scheme, some dimensions of the scheme have been re-designed to ensure support costs continue to be cost efficient. Under REFIT 2, when the electricity market payment exceeds the combination of the REFIT reference price plus balancing payment, no payment from the Public Service Obligation levy is made under the scheme. Currently the average market payment in the Single Electricity Market is broadly similar to or slightly higher than the REFIT reference price.
The structure of REFIT 2 means that if the market payment rises above the REFIT reference price plus balancing payment due, for example, to high fossil fuel prices, there is no support cost for wind on the system under the scheme. Conversely, at times when a large amount of wind is available on the system, the wholesale electricity market price is reduced meaning that consumers pay less for all electricity. The ESRI and the Commission for Energy Regulation (CER) have demonstrated that wind provides a useful hedge against high fossil fuel prices.
To be eligible for the REFIT 2 scheme, projects must be built by 31/12/15. No decision has been taken as to what, if any, support scheme will apply to onshore wind projects after that date. The costs of developing onshore wind will be kept under review as the technology continues to mature over the next number of years. In compliance with the third International Energy Market Directive, the structure of the all island electricity market will require change. Decisions on how renewable energy development will be encouraged in future will be taken in the context of developing the new electricity market structure.
162 Deputy Kevin Humphreys asked the Minister for Communications, Energy and Natural Resources the action that has been taken on the recommendation of the National Competitiveness Council in the Ireland’s Competitiveness Challenge 2011 report to support emerging energy renewables technologies such as wave, tidal and offshore wind, with funding mechanisms through research and development rather than price support mechanisms such as REFIT; and if he will make a statement on the matter. [25813/12]
There are no feed in tariff schemes in place for offshore wind, wave or tidal energy technologies. The Government decided earlier this year to encourage the development of offshore wind as an export opportunity rather than as a contributor to the domestic electricity market and therefore a feed in tariff support mechanism is not being introduced for offshore wind. Wave and tidal technology is still at the RD&D stage globally and is not yet a commercially viable technology. There is no electricity from wave or tidal sources being exported to the Irish electricity grid, hence a feed in tariff would not be payable at this stage in any event and any such support scheme would be subject to Government and State-Aid approval. I have no plans to bring forward such a proposal. The Ocean Energy Development Unit in the Sustainable Energy Authority of Ireland (SEAI) administers the R&D support programme for wave and tidal technologies. To date, 33 wave and tidal projects have received funding from SEAI under the Prototype Development Fund.
163 Deputy Joanna Tuffy asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to any complaints against RTE upheld by the Broadcasting Authority or the Broadcasting Commission in the years prior to 2011, when the “Prime Time Investigates” programme that was the subject of the recent Broadcasting Authority investigation and report was broadcast, those complaints having been upheld in the category of fairness, objectivity and impartiality and whether there were any procedures in place at RTE to respond to the findings of complaints that were upheld under this category previously and has any kind of historical analysis of previous responses to complaints upheld against RTE been carried out by his Department or any relevant State agency; and if he will make a statement on the matter. [25838/12]
As the Deputy will be aware, the Broadcasting Authority of Ireland (BAI) has the statutory responsibility for investigating complaints against all broadcasters based in this State. The BAI reports that a total of eleven complaints against RTÉ were upheld on grounds of impartiality and fairness in the years from 2006 to 2010.
The RTÉ Primetime Investigates documentary titled "Mission to Prey" was broadcast on the 23rd of May 2011. The subsequent defamation proceedings and the outcome of the BAI report conducted under Section 53 of the 2009 Act have unsurprisingly and correctly led to an unprecedented focus on journalistic practices and standards in RTÉ. The nature and extent of the failures exposed in RTÉ's investigation of the accusations against Fr Reynolds are such that the Broadcaster has had very serious questions to answer around how it conducts its business, and how the entire organisation delivers on its critical public service broadcasting mandate. In the past, I understand that the outcome of successful complaints were dealt with at an operation level within the broadcaster. However, a central component of the reporting arrangement put in place to ensure thorough implementation of the recommendations of the BAI and Horgan Reports is a review of Journalism Guidelines, an increased emphasis on training and the establishment of a new Editorial Standards Board.
Also, I note that the BAI has recently published a new draft Code of Impartiality and Fairness, which sets out a number of improved rules for broadcasters when it comes to the treatment of news and current affairs. The Consultation has closed for submissions, and I look forward to the publication of a final Code later this year as a further step to reinforce the measures already in place to ensure the objectivity and impartiality of broadcasting.
164 Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government when funding will be made available for Tarbert and Ballylongford waste water treatment schemes, County Kerry; and if he will make a statement on the matter. [25997/12]
166 Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government when funding will be available for a waste water treatment scheme (details supplied) in County Kerry; and if he will make a statement on the matter. [25705/12]
I propose to take Questions Nos. 164 and 166 together.
The Water Services Investment Programme 2010-2013, provides for the development of a comprehensive range of new water services infrastructure in County Kerry. The Programme includes contracts under construction and to commence to the value of over €92 million in the country during the period of the Programme.
Contracts for wastewater treatment plants for Ballylongford and Tarbert are amongst the list of contracts in the county to start in the period 2010-2013 and further network schemes for Ballylongford and Tarbert are included among the schemes to advance through planning in this period.
Preliminary Reports for the schemes were submitted by Kerry County Council and are being assessed by my Department. However, the Council was requested to provide additional information to enable my Department to complete its assessment. The Council has submitted the required information and my Department is now finalising its assessment. A decision on both schemes will be conveyed to the Council shortly.
165 Deputy Peter Mathews asked the Minister for the Environment, Community and Local Government his plans in respect of rates and rentals for small businesses (details supplied); and if he will make a statement on the matter. [25702/12]
Local authorities are under a statutory obligation to levy rates on any property used for commercial purposes in accordance with the details entered in the valuation lists prepared by the independent Commissioner of Valuation under the Valuation Act 2001. The levying and collection of rates are matters for each individual local authority. The annual rate on valuation (ARV), which is applied to the valuation of each property, determined by the Valuation Office, to obtain the amount payable in rates, is decided by the elected members of each local authority in the annual budget and its determination is a reserved function. The Commissioner of Valuation, who has sole responsibility for all valuation matters, is conducting a programme of revaluation of all commercial and industrial properties throughout the State on a county by county basis. The purpose of the revaluation process is to provide for more consistent and up-to-date valuations for rating purposes and to assist in providing a more equitable distribution of valuations across those liable to pay rates.
The Commissioner, in consultation with my colleague, the Minister for Public Expenditure and Reform, has been reviewing various options for streamlining the valuation process and speeding up the national revaluation programme. In this regard, the Government recently approved the drafting of a Valuation Bill to amend the Valuation Act.
I have asked local authorities to exercise restraint in setting their Annual Rate on Valuation (ARV) in the context of the adoption of their 2012 budgets. From the adopted Budgets for 2012 submitted to my Department by the 88 rating local authorities, 68 authorities have maintained their ARVs at 2011 levels and 19 local authorities have reduced their ARVs. One local authority has increased its ARV and will continue to increase it until 2015, but this is a technical adjustment and legal requirement following the extension of a town boundary. Overall, the average change of ARV from 2011 to 2012 shows a decrease of 0.31%.
I recognise that these are difficult economic times for many businesses and I will continue to keep all matters relating to rates under consideration in my Department.
I have no function in the regulation of the cost of rents for small businesses.
Question No. 166 answered with Question No. 164.
167 Deputy Simon Harris asked the Minister for the Environment, Community and Local Government the housing supports available to a couple who do not meet the criteria for rent supplement yet cannot afford to rent private accommodation; and if he will make a statement on the matter. [25710/12]
168 Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if, in view of the proposed introduction of water charges, he will consider the individual rights of citizens to avail of safe drinking water; and if he will make a statement on the matter. [25727/12]
The European Communities (Drinking Water) (No. 2) Regulations 2007, prescribe quality standards to be applied and related supervision and enforcement procedures in relation to supplies of drinking water. The Environmental Protection Agency is responsible for the supervision of public water supplies while local authorities are responsible for the supervision of all other water supplies within their functional area. The fluoridation of drinking water supplies is governed by the Health (Fluoridation of Water Supplies) Act 1960, and is a matter for the Minister of Health.
169 Deputy Brendan Smith asked the Minister for the Environment, Community and Local Government further to Parliamentary Question No. 476 of 1 May 2012, if he will clarify the question of whether the household charge is due on apartments on Dublin Docklands Development Authority property where as part of the management fee a specific amount for provision of local services is collected and paid to the local authority; if the correctness of household charge can be verified here; if such cases were looked at in the preparation of the legislation; if the reasoning on DDDA lands was looked at; if same can be examined now; and if such point was not considered as part of the legislation, if same can now be done or if through Dublin City Council an appropriate reduction can be given through the DDDA; and if he will make a statement on the matter. [25743/12]
The Local Government (Household Charge) Act 2011 and the Local Government (Household Charge) Regulations 2012 provide the legislative basis for the household charge. Under the legislation, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge by 31 March 2012, unless otherwise exempted or entitled to claim a waiver.
The household charge is on a self assessment basis and interpretation of the legislation is a matter for legal advice in individual cases and ultimately a matter for the Courts. There is no exemption or waiver in the legislation, or proposed, in respect of persons who are paying management fees.
170 Deputy Brendan Smith asked the Minister for the Environment, Community and Local Government the position regarding the installation of water meters or provision for same in new developments, and water pipe replacement works; the number of cases in which provision for meters has been made; the date on which this policy began; the reason it was commenced; the way it has been funded to date; if it is the €80 or €400 meter that has been provided for; and if he will make a statement on the matter. [25745/12]
The Government has decided to install water meters in households connected to public water supplies. I expect that the installation programme will commence later in 2012.
My Department understands that the planning process in a number of local authorities requires the developer to install meter boundary boxes in new residential developments, where the boxes can be installed at a much lower cost as the development is being constructed. However, my Department does not have figures on the number of domestic properties in each local authority area where a boundary box has been installed, and has not provided any funding for meter installation in residential developments.
My Department has prepared detailed cost estimates for the metering programme, which it would be inappropriate to release in advance of the procurement process.
171 Deputy Dara Calleary asked the Minister for the Environment, Community and Local Government if the revision boundaries of the local electoral areas will be changed in advance of the summer 2014 local elections in any county; and if he will make a statement on the matter. [25760/12]
Unlike for Dáil constituencies, there are no constitutional or statutory requirements in relation to the frequency of local electoral area boundary reviews. The most recent reviews of local electoral areas were carried out in 1998 and 2008. The June 2009 local elections took place on the basis of the local electoral areas enacted following the 2008 review.
The Constituency Commission which I established in July 2011 must present its report on Dáil and European Parliament constituencies to the Chairman of the Dáil no later than 29 June 2012. Following the publication of that report and having regard to its recommendations on Dáil constituencies and any related subsequent decisions by the Oireachtas I will give consideration to arrangements for the review of local electoral areas. I will also have regard to the final results of Census 2011 and to Government decisions on local government reform including the establishment of unified local authorities in Limerick and Tipperary.
172 Deputy Niall Collins asked the Minister for the Environment, Community and Local Government if he will detail the projects described as contracts to start in the Water Services Investment Programme 2010-2012 which have been completed or upon which construction work has begun; and if he will make a statement on the matter. [25802/12]
The Water Services Investment Programme 2010-2013, a copy of which is in the Oireachtas Library, provides for the commencement of some 340 contracts over the duration of the programme. A review of the programme in June 2011 saw the addition of a further 39 contracts.
To date some 133 contracts have been completed. 100 of these were listed in the programme as at construction and the remaining 33 were listed as new starts. Details of these contracts can be found on my Department's website. A further 94 contracts were in progress at the start of the year, and of these 74 are new starts in the programme.
173 Deputy Sean Fleming asked the Minister for the Environment, Community and Local Government if plans have been submitted to him in relation to the extension of the Mountmellick sewerage network, County Laois, to Garoon which is part of Mountmellick town and if he will approve such a proposal; and if he will make a statement on the matter. [25814/12]
Mountmellick sewerage scheme phases 2 and 3 are listed in my Department's Water Services Investment Programme 2010-2013 as schemes to progress through planning stages within the currency of the programme. Laois County Council have recently received confirmation of an Environment Impact Study from An Bórd Pleanála and a preliminary report for the scheme has been received in my Department.
174 Deputy Olivia Mitchell asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the concern being expressed by architects regarding the proposed amendments to the building controls regulation which appear to require them to certify not just the design but the actual building work carried out for which they feel they simply cannot take responsibility unless they are full time on site; and if he will make a statement on the matter. [25818/12]
The proposed Building Control (Amendment) Regulations 2012 set out a number of measures that are intended to strengthen our existing building control system. The draft regulations are currently open for public consultation and comments are invited from all interested parties. The closing date for submissions is Thursday 24 May 2012.
The regulations as proposed require, among other things, that the owner of a proposed building or works must assign a competent professional to inspect and certify the proposed building or works. The assigned person must be an Architect or a Building Surveyor named on a register maintained in line with Part 3 or Part 5 respectively of the Building Control Act 2007 or be a Chartered Engineer named on the register maintained under Section 7 of the Institution of Civil Engineers of Ireland (Charter Amendment) Act 1969.
It is envisaged that the assigned person will inspect and certify the building or works in line with a Code of Practice which is currently being prepared and which will be published, following consultation with industry stakeholders, in advance of the implementation of the proposed regulations.
It is worth noting that Architects and other construction professionals already, in certain circumstances, offer contracts for service to clients which go beyond design work and involve the oversight, inspection or certification of construction work. In this respect the proposed Regulations need not be considered in any way radical or exceptional.
Under the Building Control Acts 1990-2007, responsibility for compliance with the Building Regulations rests first and foremost with the owners of buildings and on builders/developers who carry out construction works to such buildings. The draft Regulations do not change this fundamental principle. Professionals who are engaged by builders have also a statutory duty to ensure that construction at least meets the legal minimum standards.
The proposed Building Control (Amendment) Regulations will now be reviewed by my Department in the light of the submissions received during the public consultation process with a view to having a final set of Regulations prepared and signed into law in the coming months.
175 Deputy Patrick O’Donovan asked the Minister for Justice and Equality if a person’s (details supplied) application for subsidiary protection will be completed. [25746/12]
The person concerned lodged an asylum application on 28th February, 2005. His asylum claim was investigated by the Office of the Refugee Applications Commissioner who determined that the person concerned did not meet the criteria for recognition as a refugee. This position was notified to the person concerned by letter dated 4th August, 2005. This communication advised the person concerned of his entitlement to appeal this determination to the Office of the Refugee Appeals Tribunal within a specified period.
Following an appeal hearing by the Office of the Refugee Appeals Tribunal, the determination made by the Office of the Refugee Applications Commissioner was affirmed. The person concerned then lodged judicial review proceedings in the High Court in September, 2006 challenging the decision of the Refugee Appeals Tribunal in his case. These proceedings were settled with the consequence that the decision of the Refugee Appeals Tribunal was set-aside and the person concerned was granted a fresh hearing before a different Member of the Tribunal.
The case of the person concerned was examined by a new Member of the Tribunal who concluded that the person concerned did not meet the criteria for recognition as a refugee. This position was notified to the person concerned by letter dated 23rd April, 2010.
Arising from the refusal of his asylum application, and in accordance with the provisions of Section 3 of the Immigration Act 1999 (as amended), the person concerned was notified, by letter dated 25th May, 2010, that the then Minister proposed to make a Deportation Order in respect of him. He was given the options, to be exercised within 15 working days, of leaving the State voluntarily, of consenting to the making of a Deportation Order or of making representations to the Minister setting out reasons why a Deportation Order should not be made against him He was also notified of his entitlement to apply for Subsidiary Protection in accordance with the provisions of the European Communities (Eligibility for Protection) Regulations 2006.
The person concerned submitted an application for Subsidiary Protection. When consideration of this application has been completed, the person concerned will be notified in writing of the outcome.
In the event that the application for Subsidiary Protection is refused, the position in the State of the person concerned will then be decided by reference to the provisions of 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. All representations submitted will be considered before a final decision is made. Once a decision has been made, this decision, and the consequences of the decision, will be conveyed in writing to the person concerned.
Queries in relation to the status of individual immigration cases may be made directly to the INIS by e-mail using the Oireachtas Mail facility which has been specifically established for this purpose. This service enables up to date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from the INIS is, in the Deputy's view, inadequate or too long awaited.
176 Deputy Anne Ferris asked the Minister for Justice and Equality his views on the reservation or interpretative declaration in relation to Article 4 of the international convention on all forms of racial discrimination; his plans to withdraw this reservation or interpretative declaration; and if he will make a statement on the matter. [25766/12]
Ireland signed the Convention on the Elimination of All Forms of Racial Discrimination in 1968 and ratified it in December, 2000 whereupon it became binding on Ireland in international law. At the time of ratification of the Convention, a reservation/interpretative declaration was entered in relation to Article 4 of the Convention.
The declaration (i) notes that the measures described in Article 4(a), (b) and (c) shall be undertaken with due regard to the principles embodied in the Universal Declaration of Human Rights and the rights set forth in Article 5 of the Convention and (ii) states that Ireland considers that through the measures described in Article 4, the right to freedom of opinion and expression and the right to peaceful assembly and association may not be jeopardised.
According to the United Nations Treaty Collection website, http://treaties.un.org, a number of other States Parties have made similar declarations.
I have no immediate plans to propose withdrawing Ireland's reservation/interpretative declaration on Article 4 of the Convention.
177 Deputy Barry Cowen asked the Minister for Justice and Equality when a person (details supplied) in County Offaly may expect a decision on an application for naturalisation. [25828/12]
I am advised by the Citizenship Division of the Irish Naturalisation and Immigration Service (INIS) that a valid application for a certificate of naturalisation was received from the person referred to by the Deputy in October 2009.
The application is at an advanced stage of processing and the person concerned will be informed of the outcome in due course.
Queries in relation to the status of individual immigration cases may be made directly to INIS by e-mail using the Oireachtas Mail facility which has been specifically established for this purpose. This service enables up to date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from INIS is, in the Deputy's view, inadequate or too long awaited.
178 Deputy Thomas P. Broughan asked the Minister for Justice and Equality the number of gardaí by rank in the Garda National Drugs Unit, Garda National Immigration Bureau, Garda National Bureau of Criminal Investigation, Garda Bureau of Fraud Investigation and the Criminal Assets Bureau; and if he will provide same as of 1 June 2011; and if he will make a statement on the matter. [25860/12]
I have been informed by the Garda Commissioner that the personnel strength of the Garda National Drugs Unit (G.N.D.U.), Garda National Immigration Bureau (G.N.I.B.), Garda National Bureau of Criminal Investigation (G.N.B.C.I.), Garda Bureau of Fraud Investigation (G.B.F.I.) and the Criminal Assets Bureau (C.A.B.), on the 30 April 2012, the latest date for which figures are readily available, and on 31 May 2011, was set out in the tables:
|
Unit |
C/Supt |
Supt |
Insp |
Sgt |
Garda |
Total |
|
G.N.D.U. |
1 |
2 |
4 |
8 |
42 |
57 |
|
G.N.I.B |
1 |
1 |
5 |
15 |
144 |
166 |
|
G.N.B.C.I. |
1 |
4 |
5 |
23 |
118 |
151 |
|
G.B.F.I. |
1 |
2 |
5 |
15 |
50 |
73 |
|
C.A.B. |
1 |
1 |
2 |
5 |
27 |
36 |
|
Unit |
C/Supt |
Supt |
Insp |
Sgt |
Garda |
Total |
|
G.N.D.U. |
1 |
2 |
4 |
9 |
44 |
60 |
|
G.N.I.B |
1 |
2 |
5 |
19 |
151 |
178 |
|
G.N.B.C.I. |
1 |
5 |
8 |
27 |
123 |
164 |
|
G.B.F.I. |
1 |
2 |
5 |
14 |
51 |
73 |
|
C.A.B. |
1 |
1 |
2 |
5 |
27 |
36 |
There are a further 341 personnel attached to Divisional Drugs Units.
Each of these units is augmented by civilian staff who provide professional, technical and administrative support. On the 30 April 2012, the number of civilian staff assigned to each of the units, was as set out in the following table:
|
Unit |
Civilians |
|
G.N.D.U. |
5 |
|
G.N.I.B |
59 |
|
G.N.B.C.I. |
12 |
|
G.B.F.I. |
14 |
|
C.A.B. |
31 |
Responsibility for the allocation of resources, including personnel, within the Force rests with the Garda Commissioner, in consultation with his senior management team. Resource levels are constantly monitored, in conjunction with crime trends, and the situation is kept under continuing review to ensure optimum use is made of all resources and the best possible service is provided to the public.
179 Deputy Thomas P. Broughan asked the Minister for Justice and Equality the cost of repairing Garda vehicles in 2011 and to date in 2012; and if he will make a statement on the matter. [25861/12]
The Garda Commissioner is the Accounting Officer for the Garda Vote. In that context I am advised by the Garda authorities that the cost of maintaining Garda vehicles, which includes the provision of spare parts, new tyres and towing services, in 2011 and to date in 2012 is outlined in the following table below:
|
Year |
Cost |
|
2011 |
€11,496,945 |
|
2012 (as at 21/05/12) |
€3,806,333 |
180 Deputy James Bannon asked the Minister for Justice and Equality if he will provide an update on an application for a certificate of naturalisation in respect of a person (details supplied) in County Longford; and if he will make a statement on the matter. [25867/12]
I am advised by the Citizenship Division of the Irish Naturalisation and Immigration Service (INIS) that an application for a certificate of naturalisation was received from the person referred to by the Deputy in January 2008 and was deemed ineligible. A valid application for a certificate of naturalisation was subsequently received from the person referred to by the Deputy in June 2008. The application is currently being processed with a view to establishing whether the applicant meets the statutory conditions for the granting of naturalisation, such as good character and lawful residence, and will be submitted to me for decision as expeditiously as possible.
It is recognised that all applicants for citizenship would wish to have a decision on their application without delay. Considerable resources are deployed to process applications and these resources together with the necessary administrative arrangements are kept under review.
As well as being a significant event in the life of its recipient, the granting of Irish citizenship through naturalisation as provided for in law is also a major step for the State which confers certain rights and entitlements not only within the State but also at European Union level and it is important that appropriate procedures are in place to preserve the integrity of the process.
Queries in relation to the status of individual immigration cases may be made directly to INIS by e-mail using the Oireachtas Mail facility which has been specifically established for this purpose. This service enables up to date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from INIS is, in the Deputy's view, inadequate or too long awaited.
181 Deputy Finian McGrath asked the Minister for Justice and Equality if he will provide an immediate action plan to deal with anti-social activity in O’Connell Street, Dublin, particularly after 7 p.m. [25872/12]
I am informed by the Garda authorities that the area referred to is within the Store Street Garda District, which is part of the Dublin Metropolitan Region (DMR) North Central Division. I am further informed that dedicated high visibility policing patrols, both foot and mobile, were introduced in the north inner city in order to combat anti-social behaviour in the area. The primary focus of these policing initiatives is to pay particular attention to persons and individuals involved in anti-social behaviour and criminal activities. The operation is focused on core times in order to correlate with the volume of patrons using the main thoroughfare.
I am also informed that all licensed premises in the city centre are closely monitored, with particular regard to the sale and supply of alcohol to minors, and allowing drunkenness on licensed premises. Current policing plans in the area are designed to address issues of crime and public order offences. Community policing is a central feature and core value of policing policy and current policing strategies are predicated on the prevention of crime, public order offences and anti-social behaviour. Local Garda management is satisfied that a full and comprehensive policing service is being delivered to the area in question.
182 Deputy Denis Naughten asked the Minister for Justice and Equality the progress made on the drafting of the legal costs Bill and family law Bill; and if he will make a statement on the matter. [25873/12]
The Bill dealing with the reform of the legal sector and of legal costs, to which I assume the Deputy is referring, is the Legal Services Regulation Bill 2011. Part 9 of the Bill, which comprises five chapters, makes extensive provision in relation to the charging and adjudication of legal costs supported by the Principles Relating to Legal Costs which are set out, for the first time in statute, under Schedule 1 of the Bill. In addition to making legal costs and the basis upon which they are charged more transparent to consumers of legal services, the Bill provides that determinations made about legal costs by the new Legal Costs Adjudicator will be made public. Under the Bill, the Adjudicator is to assume the role of the existing Taxing-Master and will also be empowered to issue legal costs guidelines.
The Legal Services Regulation Bill completed Second Stage in the Dáil on 23rd February, 2012. In closing the Second Stage debate I have outlined the approaches being taken to enhancing the Bill in preparation for Committee Stage. Work on the details of the proposed amendments to the Bill is ongoing at my Department including in conjunction with the Offices of the Attorney General and of Parliamentary Counsel and the amendments will, as I have previously explained, be made available in advance of Committee Stage. It remains my objective, notwithstanding the competing legislative demands of our EU/IMF/ECB Programme commitments, that Committee Stage of the Legal Services Regulation Bill commence before the summer recess. In relation to the Family Law Bill, proposals are being advanced in my Department as quickly as possible, subject to the disposal of other priorities.
183 Deputy Paschal Donohoe asked the Minister for Justice and Equality the position regarding an application in respect of a person (details supplied); and if he will make a statement on the matter. [25879/12]
I am advised by the Citizenship Division of the Irish Naturalisation and Immigration Service (INIS) that a valid application for a certificate of naturalisation was received from the person referred to by the Deputy in June 2009. The application is currently being processed with a view to establishing whether the applicant meets the statutory conditions for the granting of naturalisation, such as good character and lawful residence, and will be submitted to me for decision as expeditiously as possible.
It is recognised that all applicants for citizenship would wish to have a decision on their application without delay. Considerable resources are deployed to process applications and these resources together with the necessary administrative arrangements are kept under review. As well as being a significant event in the life of its recipient, the granting of Irish citizenship through naturalisation as provided for in law is also a major step for the State which confers certain rights and entitlements not only within the State but also at European Union level and it is important that appropriate procedures are in place to preserve the integrity of the process.
Queries in relation to the status of individual immigration cases may be made directly to INIS by e-mail using the Oireachtas Mail facility which has been specifically established for this purpose. This service enables up to date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from INIS is, in the Deputy's view, inadequate or too long awaited.
184 Deputy Michael Healy-Rae asked the Minister for Justice and Equality if he will provide a breakdown in tabular form of the waiting lists for persons seeking civil legal aid in each county; and if he will make a statement on the matter. [25950/12]
The Legal Aid Board is a statutory, independent body in accordance with the Civil Legal Aid Act 1995. The issue raised by the Deputy is a matter for the Board. However, in order to be helpful to the Deputy I have had enquiries made with the Board. On the assumption that the Deputy referring to the number of applicants for non-prioritised matters at each law centre, I am advised that as at 30 April, 2012 the following is the information requested:
|
Numbers Waiting in each Law Centre on 30 April, 2012 |
|
|
Dublin |
|
|
Blanchardstown |
144 |
|
Brunswick Street |
161 |
|
Clondalkin |
262 |
|
Finglas |
206 |
|
Gardiner Street |
259 |
|
Tallaght |
157 |
|
Cork |
|
|
Popes Quay |
240 |
|
South Mall |
286 |
|
Athlone |
170 |
|
Castlebar |
107 |
|
Cavan |
103 |
|
Dundalk |
13 |
|
Ennis |
165 |
|
Galway |
234 |
|
Kilkenny |
324 |
|
Letterkenny |
119 |
|
Limerick |
126 |
|
Longford |
101 |
|
Monaghan |
48 |
|
Navan |
146 |
|
Nenagh |
117 |
|
Newbridge |
239 |
|
Portlaoise |
213 |
|
Sligo |
124 |
|
Tralee |
150 |
|
Tullamore |
75 |
|
Waterford |
124 |
|
Wexford |
196 |
|
Wicklow |
194 |
Finally, the Deputy may also wish to note that I am further informed that five law centres have now commenced a pilot project which aims to ensure that every applicant receives an appointment with a solicitor within a month of their application for the purpose of receiving legal advice. As such some applicants at those locations will have received legal advice though they are waiting for further services. The law centres involved in this pilot project are located at Athlone, Cavan, Nenagh, Sligo and Wicklow.
185 Deputy Michael Healy-Rae asked the Minister for Justice and Equality with regard to the civil legal aid service in Ireland, if the reduction in staff and funding of the service resulted in persons who are in urgent need of legal aid having to go before the courts without proper advice and back up; and if he will make a statement on the matter. [25951/12]
The Legal Aid Board is a statutory, independent body in accordance with the Civil Legal Aid Act 1995. The issue raised by the Deputy is a matter for the Board. However, in order to be helpful to the Deputy I have had enquiries made with the Board. I am informed that in the vast majority of cases in which a party has sought legal services from the Legal Aid Board and where those legal services are not available to the person in advance of his/her next court date, the matter is adjourned until such time as the person is able to obtain legal services. This is particularly so in family law matters. I would like to refer the Deputy to my answer to Parliamentary Question 186 of today's date which was also tabled by him in which I provide information on the types of cases that are prioritised by the Board. I am informed by the Board that applicants in these cases obtain an immediate or near immediate service.
186 Deputy Michael Healy-Rae asked the Minister for Justice and Equality if there is guarantee when it comes to legal aid of a no waiting policy for issues of domestic violence or potential child abuse when people seek assistance; and if he will make a statement on the matter. [25952/12]
The Legal Aid Board is a statutory, independent body in accordance with the Civil Legal Aid Act 1995. The issue raised by the Deputy is a matter for the Board. However, in order to be helpful to the Deputy I have had enquiries made with the Board.
I am informed that the Legal Aid Board gives priority to certain case types. The consequence of being prioritised is that the applicant should get an immediate or near immediate service. The case types that are prioritised are as follows:
child abduction proceedings;
situations in which there is a real danger of children being taken out of the jurisdiction without the consent of the applicant;
proceedings on foot of Part IV of the Child Care Act 1991 or where applicants are presenting with cases that involve a risk of such proceedings;
domestic violence;
where a maintenance debtor has been served with a summons/warrant on foot of section 9A of the Family Law (Maintenance of Spouses and Children) Act 1976 has appeared in Court and has applied for civil legal aid having been advised of his/her entitlement to do so by the Judge;
where, under the Statute of Limitations, there is a danger that the time limits for issuing proceedings may expire unless immediate action is taken;
which there is a danger of time limits expiring;
which there is a danger that assets may be reduced/disposed of so that they would be unavailable to meet the claims of the applicant;
District Court and Circuit Court appeals, where the case has been dealt with through the private practitioner service and services are now being sought from the law centre;
legal services are required for complainants in rape and certain sexual assault cases;
legal aid is required for persons in respect of whom a sex offenders order is being sought;
cases in which the other party's nationality, domicile or habitual residence enables them to seek a similar remedy in another jurisdiction and where the applicant is likely to be prejudiced if he/she does not initiate proceedings first;
asylum cases; and
managing solicitors have used a residual discretion to provide a priority service in other cases where, having regard to the particular case concerned, as compared with other applications on the applications record, and to their own knowledge and experience, they consider that it is appropriate that a particular applicant be given specific priority over other applicants for legal services.
187 Deputy Michael Healy-Rae asked the Minister for Agriculture, Food and the Marine if funding is available to repair a slipway (details supplied) in County Kerry; and if he will make a statement on the matter. [25953/12]
Dooks Slipway, Glenbeigh is in the ownership of Kerry County Council and responsibility for its repair and maintenance rests with the Local Authority in the first instance.
My Department did receive an application from Kerry County Council for funding for a total of 7 projects for inclusion in the 2012 Fishery Harbour and Coastal Infrastructure Development Programme. No application for funding in respect of Dooks Slipway was received from Kerry County Council. The 2012 programme has now been finalised and all offers of funding have been issued.
Any application for funding in future years by Kerry County Council will be given consideration subject to available exchequer funding and overall national priorities.
188 Deputy Michael Lowry asked the Minister for Agriculture, Food and the Marine the reason a person (details supplied) in County Tipperary has yet to received the full sum of the entitlements owed to him from the national reserve for 2010; the steps being taken to resolve this issue; and if he will make a statement on the matter. [25748/12]
The person named submitted an application for consideration of an allocation of entitlements under the New Entrant category of the 2010 National Reserve.
This category caters for farmers who commenced farming after 15 May 2008. Successful applicants under this category were required to meet certain criteria in relation to income limits and educational qualifications. The application was initially rejected as the person named did not submit the documentary evidence which had been requested. This documentation was subsequently submitted and the National Reserve application was deemed eligible. An allocation of 13.2 entitlements was made to the person named and payment on these entitlements for the 2010 scheme year issued on 17th May 2012.
189 Deputy Áine Collins asked the Minister for Agriculture, Food and the Marine the reason a person (details supplied) in County Cork is no longer eligible for suckler welfare scheme. [25750/12]
The person named registered five animals under the 2010 Suckler Welfare Scheme and one animal under the 2011 Scheme. The Terms and Conditions specify the requirements of the Scheme, which provide that participants must carry out the prescribed measures and notify the Department of the completion of each of these measures. These requirements are mandatory for the entire five year period of the scheme. The person named did not submit weaning dates in respect of the 2010 born animals and no data was received for the 2011 born animal.
Consequently, the position is as outlined to the person named in my Department's letter of 29 February 2012, which confirmed that the person named is no longer an eligible participant under the Suckler Welfare Scheme.
190 Deputy Colm Keaveney asked the Minister for Agriculture, Food and the Marine the position regarding an appeal under the agri-environment options scheme in respect of a person (details supplied) in County Galway and when payment will issue. [25833/12]
The person named submitted an application form for the 2011 Agri-Environment Options Scheme on 16th May 2011 having completed the Form B option, indicating that he had no designated lands.
Under the EU Regulations governing the Scheme and other area-based payment schemes, a comprehensive administrative check, including cross-checks with the Land Parcel Identification System, must be completed before any payment can issue. During this administrative checking process it was discovered that some parcels contained designated areas. My Department subsequently rejected the application as the scheme Terms and Conditions had not been complied with. A letter issued to the person named on 12th March 2012 setting out this decision and providing the person named with an option to submit an appeal. An appeal was received in AEOS Section on 29th March 2012. Following the receipt of this appeal officials in my Department requested additional information related to the designation of these lands from the National Parks and Wildlife Service. Upon receipt of a reply the review will be concluded and the person named will be notified of the decision in writing.
191 Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine the plans there are, or that will be implemented to increase turkey production in view of the fact that there is substantial turkey farm and hatchery capacity not being utilised; and if he will make a statement on the matter. [25934/12]
192 Deputy Brendan Smith asked the Minister for Agriculture, Food and the Marine his plans to incentivise turkey production; and if he will make a statement on the matter. [25959/12]
I propose to take Questions Nos. 191 and 192 together.
The farm gate value of the poultry sector, at €150m (approx €120m meat and €30m eggs), accounts for approximately 3% of gross agricultural output. Within this, the turkey production sector is a small niche element which is highly seasonal and which has a high level of vertical integration. Food Harvest 2020 targets a 10% increase in the value of output of the poultry sector by 2020. It has identified scope for some reduction in transport costs together with efficiencies through cost effective energy use in terms of increased scale and volume of modern housing facilities. In addition, improved feed conversion rates and an improvement in the quality of birds produced can help achieve these targets and maintain producer viability.
Investment in innovation and value-added output together with ongoing promotion under Quality Assurance Schemes will also help in this regard.
The Common Agricultural Policy constrains the financial assistance that can be afforded to poultry producers with such assistance usually linked to avian health or welfare considerations.
My Department is responsible for the registration of turkey production sites and hatcheries and registered sites are required to comply with regulations pertaining to animal welfare, hygiene, disease control and marketing and production standards.
Capacity utilisation decisions are made having regard to commercial considerations and are a matter for operators.
193 Deputy Billy Timmins asked the Minister for Children and Youth Affairs the position regarding the bilateral agreement with Ethiopia. [25939/12]
Adoptions from Ethiopia, effected under the transitional arrangements provided for in the Adoption Act 2010, are ongoing and are currently being examined, and recognised, by the Adoption Authority of Ireland (AAI). These transitional arrangements may lead to adoptions from Ethiopia taking place up to the end of October 2012. The Adoption Act 2010 also contains provision for a one year extension to declarations of eligibility and suitability to adopt which may lead to a one year extension to this date. Ethiopia is not a signatory of the Hague Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption. In these circumstances, adoptions from Ethiopia which are not covered by the transitional arrangements referred to above would require a bilateral agreement between Ireland and Ethiopia. The negotiation of bilateral agreements on intercountry adoption with states who have not ratified the Hague Convention is governed by Section 73 of the Adoption Act 2010 which states that "the Authority, with the prior consent of the Minister, may enter into discussions with any non-contracting state concerning the possibility of the Government entering into a bilateral agreement with that State.” Any bilateral arrangements which might be entered into would be required by law to meet the minimum standards set out in the Hague Convention.
A delegation from the Adoption Authority visited Ethiopia in April and held exploratory meetings with the Ethiopian authorities regarding the system of adoption which operates in that country. The delegation, in the course of its visit, held preliminary discussions with the Ethiopian authorities around the potential for a bilateral agreement on intercountry adoption. The Authority submitted its initial report which summarises the conclusions and recommendations of the delegation's visit on the 21st of May. While this is now being considered in my Department, the AAI has stated that it is seeking further legal advice in Ethiopia on whether adoptions there are full or simple adoptions. The Authority indicated that it will contact me again once it has received this legal advice and has completed its consideration of the matter.
194 Deputy Catherine Murphy asked the Minister for Health if he will confirm if the fluoridation chemicals administered in drinking water have been tested to determine if they meet the requirements of EU legislation for the protection of public health and the environment; and if he will make a statement on the matter. [25719/12]
195 Deputy Catherine Murphy asked the Minister for Health if he will examine the merits of the addition of silicofluoride chemicals to water in the context of an outright ban on same in most other EU members states; and if he will make a statement on the matter. [25727/12]
I propose to take Questions Nos. 194 and 195 together.
The Health (Fluoridation of Water Supplies) Act 1960 provides for the fluoridation of public piped water supplies. This is achieved through the addition of hydrofluorosilicic acid (HFSA) to the water. The complete and rapid reaction between HFSA and water produces hydrogen ions (which are removed through a process called buffering), silica (sand) and fluoride ions. Consumers do not come into contact with HFSA as water from the tap contains fluoride, not HFSA or fluorosilicates. The balance of scientific evidence worldwide confirms that water fluoridation, at the optimal level, does not cause any ill effects and continues to be safe and effective in protecting the oral health of all age groups. ere are no plans to discontinue the policy of fluoridation of public water supplies, which continues to make an effective contribution to oral health in Ireland.
196 Deputy Michael Healy-Rae asked the Minister for Health the position regarding an application for a medical card in respect of a person (details supplied); and if he will make a statement on the matter. [25924/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
197 Deputy Timmy Dooley asked the Minister for Health if two years is a normal waiting period in the case of a person (details supplied) in County Wexford to be fitted for a hearing aid; and if he will make a statement on the matter. [25691/12]
As this is a service matter it has been referred to the HSE for direct reply.
198 Deputy Brendan Smith asked the Minister for Health the position regarding his plans for the new national children’s hospital; if he will summarise the terms for selection of the new site; the main changes from previous selection criteria; the number of sites now under consideration; the groups that have been met by him, his advisers or officials; the details of same; the information on the scoring of proposals that has been made available; and if he will make a statement on the matter. [25693/12]
199 Deputy Liam Twomey asked the Minister for Health the number of submissions the review group has received regarding the national children’s hospital; the number that are being discussed with the authors of the submissions; and if he will make a statement on the matter. [25711/12]
200 Deputy Liam Twomey asked the Minister for Health the number of sites that are under discussion by the review group regarding the national children’s hospital; the number of groups or individuals that have been interviewed or will be interviewed before issuing a final report; and if he will make a statement on the matter. [25712/12]
201 Deputy Liam Twomey asked the Minister for Health the number of meetings the review group held themselves regarding the national children’s hospital; and the attendance rate for members; and if he will make a statement on the matter. [25713/12]
202 Deputy Liam Twomey asked the Minister for Health the way the review group assess the sites they do not visit regarding the national children’s hospital; and if he will make a statement on the matter. [25714/12]
I propose to take Questions Nos. 198 to 202, inclusive, together.
As you will be aware, I have established an independent Review Group to consider the implications of the decision of An Bórd Pleanála, received on 23 February 2012, to reject the planning application for the proposed construction of a national paediatric hospital on the site of the Mater Misericordiae Hospital. The aim of the Review is to consider all the possible options for the earliest possible delivery of a new children's hospital and the Group will present its findings on each of the possible options for my consideration. I will await the completion of the Group's work before making any further comment on the matter.
203 Deputy Niall Collins asked the Minister for Health the action he now proposes to take to deal with all the recommendations of the Health Information Quality Authority published in respect of Tallaght Hospital, Dublin; if he will appreciate the need to restore public confidence in the hospital; and if he will make a statement on the matter. [25729/12]
I want to offer my deepest sympathies to the family concerned. We must never forget that this report is first and foremost about patient safety and that it all began because of the death of a patient on a trolley in a corridor adjacent to the Emergency Department.
I believe however that patients in all of our acute hospitals need the assurance that this matter is being dealt with in an effective way, that lessons have been learned and that Quality Assurance Systems are being put in place across the country This report as an important element in driving the Health Reform Programme which is focusing on and prioritising patient safety and best governance. The HIQA report gives us a template for hospital governance as we move to the establishment of the new Hospital Groups to be established this year.
Many changes have already happened in Tallaght Hospital and the report acknowledges this. The practice of leaving patients waiting on trolleys for admission in a corridor adjacent to the Emergency Department was clinically unsafe and completely unacceptable. This has been stopped.
The report found that there was no clarity as to who was providing medical supervision of these patients. This is completely unacceptable. For that reason the Chief Medical Officer has referred the report to the Medical Council and An Bord Altranais to ask them to address the significant issues that arise. The CEO of HIQA wrote to me last November because of her concerns about the deficits in governance and management at the hospital. As a result a new interim Board, chaired by Sir Keith Pearson was appointed last December. A new CEO is in place who is building a new management team including clinical leadership.
Safe quality health care is a fundamental principle of the reform programme. I have approved the HIQA National Standards for Safer Better Healthcare to underpin the development of quality safe healthcare services. The National Standards also describe what capacity and capability factors service providers require to implement these Standards. Service providers, including the private (independent) service providers, can use the National Standards as a framework to organise, manage and deliver their services safely. It is also important to recognise that the staff of the hospital have a hugely important role in responding to the challenges ahead and in restoring and supporting this Hospital to achieve its potential.
204 Deputy Colm Keaveney asked the Minister for Health the reason a person (details supplied) in County Galway has been refused a motorised transport grant. [25751/12]
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 to the Deputy.
205 Deputy John O’Mahony asked the Minister for Health when a person (details supplied) in County Mayo will receive a decision on their appeal in relation to a medical card application; and if he will make a statement on the matter. [25758/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
206 Deputy Bernard J. Durkan asked the Minister for Health if and when a medical card will issue in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [25759/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy as a matter of urgency.
207 Deputy Dara Calleary asked the Minister for Health the overall breakdown of rents paid by the Health Service Executive for premises in County Donegal; and if he will provide a detailed breakdown of the location, rents payable and use of each specific premises. [25768/12]
The Health Service Executive replied on 21 May to your earlier parliamentary question of 22 February which sought the same information.
208 Deputy Noel Grealish asked the Minister for Health if the Health Service Executive will provide a building for an organisation (details supplied) to operate a suicide prevention service in Tuam, County Galway; and if he will make a statement on the matter. [25801/12]
Health care delivery locations are a service matter. Therefore your question has been referred to the Health Service Executive for direct reply.
209 Deputy Billy Kelleher asked the Minister for Health if he will provide a list of the proposed primary care centres yet to be built around the country; and if he will make a statement on the matter. [25803/12]
The development of primary care is central to this Government's objective to deliver a high quality, integrated and cost effective health care system. The Programme for Government states that primary care will be an immediate priority area. The development of primary care centres, through a combination of public and private investment, will facilitate the delivery of multi-disciplinary primary care and represents a tangible re-focussing of the health service to deliver care in the most appropriate and lowest cost setting. The delivery of the necessary infrastructure must be informed by needs analysis, with priority given to areas of urban and rural deprivation. The HSE is currently engaged in prioritising primary care centre locations.
A draft capital plan for the period 2012-2016 has been submitted to my Department. My Department is reviewing the proposals and following up with the HSE where further details may be required. The proposed plan requires my approval with the consent of the Minister for Public Expenditure and Reform. Details of the plan will be published by the Executive following its approval.
210 Deputy Sean Fleming asked the Minister for Health his views and the plans for St. Vincent's Hospital, Mountmellick, County Laois, for 2012, 2013 and future years; and if he will make a statement on the matter. [25815/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
211 Deputy Bernard J. Durkan asked the Minister for Health if information regarding household income for the current year will be taken into consideration regarding a pending appeal for a medical card in the case of a person (details supplied) in County Kildare; if extra consideration will be given to the fact that the person is a transplant patient and will be on medication for life; and if he will make a statement on the matter. [25831/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
212 Deputy Tom Fleming asked the Minister for Health when a decision will issue on a medical card application in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [25841/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
213 Deputy Bernard J. Durkan asked the Minister for Health the total number of hospice beds and palliative care facilities available on a county or regional basis throughout the country; the number of such beds available to patients in County Kildare; the extent to which adequate staff and backup services are available; the extent to which total staffing levels are adequate to meet requirements in this regard; if any planning for the future has taken place with particular reference to the need to make provision in line with demographics at national, regional and local level; and if he will make a statement on the matter. [25842/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
214 Deputy Bernard J. Durkan asked the Minister for Health the total number and location of hospice palliative care beds available to patients in County Kildare on an ongoing basis; the extent to which the existing facilities meet requirements; if it is proposed to augment, extend or upgrade the service; and if he will make a statement on the matter. [25843/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
215 Deputy Tom Fleming asked the Minister for Health if he will add the drug Sativex to the controlled drug schedule to enable it to be available to persons with Multiple Sclerosis; and if he will make a statement on the matter. [25846/12]
Cannabis is designated as a Schedule 1 controlled drug under the Misuse of Drugs Act 1977. Under the Misuse of Drugs Act 1977, the manufacture, production, preparation, sale, supply, distribution and possession of cannabis or cannabis-based medicinal products are unlawful except for the purposes of research. As the law currently stands, it is not possible for cannabis-based medicinal products such as Sativex to be prescribed by a medical practitioner in Ireland.
I am aware that claims have been made in respect of the possible health benefits of cannabis-based medicinal products, such as Sativex, for patients suffering from certain conditions such as Multiple Sclerosis. I am also aware that cannabis-based medicinal products may be legally prescribed in other countries. My Department is currently examining how cannabis-based medicinal products, such as Sativex, may be legally prescribed by medical practitioners and used by patients for the treatment of Multiple Sclerosis in Ireland.
216 Deputy Sandra McLellan asked the Minister for Health the criteria to qualify for a reimbursement of medical expenses; and if he will make a statement on the matter. [25852/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply to the Deputy.
217 Deputy Thomas P. Broughan asked the Minister for Health if he will provide an assurance that no extra beds will be closed at Beaumont Hospital, Dublin 9 for the rest of the year; and if he will make a statement on the matter. [25858/12]
218 Deputy Thomas P. Broughan asked the Minister for Health the target accident and emergency waiting time for Beaumont Hospital, Dublin; and if he will make a statement on the matter. [25859/12]
I propose to take Questions Nos. 217 and 218 together.
As these are service matters, they have been referred to the Health Service Executive for direct reply.
219 Deputy James Bannon asked the Minister for Health the position regarding an update for a hip replacement operation in respect of a person (details supplied) in County Longford; and if he will make a statement on the matter. [25871/12]
I am determined to address the issues which cause unacceptable delays in patients receiving treatment in our hospitals. In this regard I have established the Special Delivery Unit (SDU), which will work to unblock access to acute services by improving the flow of patients through the system, and by streamlining waiting lists, including the management of referrals from GPs by hospitals. The SDU is working closely with its partner agencies - mainly the HSE and the NTPF.
As a priority, public hospitals were instructed to ensure that, by the end of 2011, they had no patients waiting more than 12 months for treatment. I can confirm that the vast majority of hospitals achieved this objective. During 2012 the SDU will support hospitals in the delivery of a 9 month maximum wait time for inpatient or daycase surgery.
As this is a service matter, it has been referred to the HSE for direct reply. Should the patient's general practitioner consider that the patient's condition warrants an earlier appointment, he/she would be in the best position to take the matter up with the consultant and hospital involved.
220 Deputy Micheál Martin asked the Minister for Health when a person (details supplied) will receive a replacement prosthetic limb; if he will provide funding to allow the prosthetic limb to be sanctioned; and if he will make a statement on the matter. [25876/12]
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 to the Deputy.
221 Deputy Micheál Martin asked the Minister for Health the measures that will be taken to reduce the waiting list for provision of prosthesis and orthotics in Cork by the Health Service Executive, in view of the fact that 100 persons are currently on a waiting list in Cork with an average wait of nine to twelve months; the provision that will be made particularly for children and adolescents who have outgrown old prosthetic limbs and currently are without any prosthesis due to the HSE’s limited budget for the supply of prosthesis and orthotics; and if he will make a statement on the matter. [25877/12]
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 to the Deputy.
222 Deputy Patrick O’Donovan asked the Minister for Health if he has received correspondence regarding a hospital (details supplied); and if he will make a statement on the matter. [25878/12]
The correspondence referred to by the Deputy is a submission prepared by a member of staff at the hospital and submitted to the HSE. The document was copied to the Department yesterday 22 May 2012. Officials from the Department will seek the views of the HSE in relation to the contents of the submission.
223 Deputy Catherine Murphy asked the Minister for Health if arrangements will be put in place to restore the two respite beds at the Maynooth Community Unit, County Kildare; if so, the date that same will occur; and if he will make a statement on the matter. [25928/12]
As this is a service matter it has been referred to the Health Service Executive for direct reply.
224 Deputy Seán Kyne asked the Minister for Health the number of staff working in the elder abuse unit; if he will confirm that each Health Service Executive region has a dedicated officer for elder abuse and if each local health office has a senior case officer whose role it is to monitor referrals of elder abuse [25929/12]
As this is a service matter it has been referred to the HSE for direct reply.
225 Deputy Seán Kyne asked the Minister for Health his views on whether the work of the Health Service Executive and non-governmental organisations would be strengthened in the area of tackling and preventing elder abuse if legislation was introduced to provide a statutory footing, thereby protecting against abuse at every life stage [25930/12]
As the Deputy may be aware, Health Service Executive policy on elder abuse is derived from the 2002 report of the Working Group on Elder Abuse, Protecting Our Future and the 2009 Review of that Report. Protecting Our Future defines elder abuse as “A single or repeated act or lack of appropriate action occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person or violates their human and civil rights.”Elder Abuse is a complex issue and can occur in many forms, including: physical, sexual, psychological, financial, and discriminatory abuse, or neglect. Consequently tackling and preventing elder abuse requires a multifaceted response which may involve working with older people, families, communities, statutory agencies and businesses.
Protections for older people in residential care are strengthened by the National Quality Standards for Residential Care Settings for Older People in Ireland and underpinned by the Health Act 2007 (Care and Welfare of Residents in Designated Centres for Older People) Regulations 2009.
A number of legal remedies are available to address the issue both in terms of protecting those older people who may be at risk of abusive behaviours, and in terms of prosecuting those responsible for abuse, mistreatment or neglect. Supports and assistance are also available from the Health Service and other Agencies in the case of family breakdown where it would not be appropriate to have legislative interventions.
The Department of Health has no plans to further develop statutory protections for this area at this time.
226 Deputy Michael Healy-Rae asked the Minister for Health his views on the Irish Dental Association concerns regarding cutbacks in the national dental treatment programme (details supplied); and if he will make a statement on the matter. [25955/12]
The Dental Treatment Services Scheme (DTSS) provides access to dental treatment for adult medical card holders. Patients with special needs, high risk patients and those who have greater clinical needs, including patients with diabetes and/or a heart condition, receive priority for treatment.
A free oral examination every calendar year and free emergency dental treatment with a focus on relief of pain and sepsis are available to all eligible patients, regardless of their medical condition. This includes 2 fillings, all extractions and a number of complex treatments. The National Oral Health Office of the HSE issued Standard Operating Procedures (SOPs) to dental contractors in November 2011 to support equitable and priority funding and provide clearer guidance to dentists on the application of DTSS prior approval requests. The Procedures confirm that high risk patients are to be prioritised for approval. They receive all DTSS services that were available prior to April 2010 which includes all fillings as required and approval for complex care including root canal treatment, gum treatment and dentures. Examples of recent increases in the number of treatments (year to date) which indicate that people are not neglecting their dental health and are gaining access to services are as follows:
|
Oral examinations |
|
|
April 2011 |
101,457 |
|
April 2012 |
133,859 |
|
Restorations (fillings) |
|
|
April 2011 |
109,207 |
|
April 2012 |
134,671 |
|
Prosthetics (dentures) |
|
|
April 2011 |
8,430 |
|
April 2012 |
12,229 |
|
Denture repairs |
|
|
April 2011 |
7,666 |
|
April 2012 |
9,385 |
227 Deputy Thomas P. Broughan asked the Minister for Transport, Tourism and Sport the number of full-time staff working in the Howth tourism office, County Dublin; if additional staff will be allocated over the summer months; the opening hours of the office, if the office opening hours will be extended over the summer months; the cost of operating this office in 2010/2011 and to date in 2012; and if he will make a statement on the matter. [25854/12]
Fáilte Ireland operates an extensive network of Tourism Information Offices throughout the country. The day to day management of the offices, their opening hours and their locations are administrative matters for Fáilte Ireland.
However, Fáilte Ireland does not run or have any involvement with the Tourist Information Office in Howth and I understand it is run by a local tourism organisation. Accordingly, I am not in a position to answer the questions raised by the Deputy regarding its operation.
228 Deputy Thomas P. Broughan asked the Minister for Transport, Tourism and Sport the number of persons who retired from the public sector who have been re-employed by his Department in 2011 and to date in 2012; their grades; the cost of same; and if he will make a statement on the matter. [25855/12]
I refer the Deputy to Dáil Question No. 405 of Tuesday 8th May 2012 which sets out details of all retired public servants who have been re-hired in my Department since my appointment as Minister for Transport, Tourism and Sport on 9th March 2011.
229 Deputy Dominic Hannigan asked the Minister for Transport, Tourism and Sport further to Parliamentary Question No. 215 of 10 May 2012, if he will provide details of the pilot and timings; and if he will make a statement on the matter. [25875/12]
Responsibility for implementation of the integrated ticketing system became the function of the National Transport Authority (NTA) with effect from 30 September 2010.
The piloting of the Leap Card on Bus Éireann services within the Eastern Region and on services of private bus operators is an operational issue for the Authority and I have no function in such matters.
Noting this, I have referred the Deputy's question to the NTA for direct reply. Please advise my private office if you do not receive a reply within 10 working days.
