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Wednesday, 26 Sep 2012

Written Answers Nos. 79-86

Departmental Expenditure

Questions (79)

Pearse Doherty

Question:

79. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform further to Parliamentary Question No 493 of 18 September, 2012 if he will provide an explanation for the payment of €2,603,000 by the Exchequer to Marathon Petroleum in the July 2012 Exchequer statement; and if he will make a statement on the matter. [40898/12]

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Written answers

The Exchequer statement records that €2.603 was paid to Marathon Petroleum (now PSE Kinsale Marathon’s operations in the Kinsale field were taken over by Petronas, the Malaysian state-owned petroleum concern, in 2009 and renamed PSE Kinsale.) in the first half of 2012. Article X of a 1959 Agreement with Marathon Petroleum provides that the company is entitled to a remittance of the amount by which the total of tax and royalty paid in any accounting period exceeds 40% of the "net income" as defined in that Article. The level of the remittance is restricted to the lesser of the following two amounts:

- An amount equal to the excess of the total of tax and royalty over the said 40% of "net income", or

- An amount equal to the taxes paid on income and profits.

State Bodies Mergers

Questions (80)

Alex White

Question:

80. Deputy Alex White asked the Minister for Public Expenditure and Reform if he will provide an update on the proposal to merge the Forensic State Laboratory with the State Laboratory as outlined in the Public Service Reform Plan; if there is a timeline for such a merger; and if he will make a statement on the matter. [40920/12]

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Written answers

The proposed measure is one of 46 critical reviews of State bodies which are being undertaken as part of the Public Service Reform plan, published in November last year. The Department of Public Expenditure and Reform is currently considering the reviews received by Departments.

In relation to critical review No.19 of the Agency Rationalisation Programme, i.e. the review of the merger of the Forensic Science Laboratory into the State Laboratory has been completed. The recommendation of the review will be considered in due course.

Departmental Agencies Issues

Questions (81)

Alex White

Question:

81. Deputy Alex White asked the Minister for Public Expenditure and Reform if his attention has been drawn to the State agencies turning down requests from employees to reduce their five day contracts to 2.5 or three day contracts when particular personal circumstances may obtain; his views on such requests; and if he will make a statement on the matter. [40938/12]

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Written answers

In the matter of State agencies turning down requests from employees to reduce their five day contracts to 2.5 or three day contracts I wish to advise the Deputy that no such issues have been brought to my attention.

The Agencies under the aegis of my Department consider all requests from staff to reduce their working hours on a case by case basis having regard to the business needs of the Agency and the personal circumstances of the individual concerned.

Public Sector Allowances Review

Questions (82)

Michael Creed

Question:

82. Deputy Michael Creed asked the Minister for Public Expenditure and Reform if he will publish details of all the allowances paid to public servants which his Department recently considered; if he will also publish the business case which his Department received in respect of each allowance, the communication which he has had with public sector unions on the issue of these allowances in the context of the Croke Park agreement; and if he will make a statement on the matter. [40954/12]

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Written answers

Following consideration by Government of my proposals in relation to the outcome of the review, details of classes of allowances on which Government decided will be

(a) abolished for new beneficiaries,

(b) approved for new beneficiaries subject to review and/or modification, and

(c) approved for new beneficiaries,

are publicly available on my Departments’ website (www.per.gov.ie). Lists of allowances and business cases submitted for review by my Department have also been published.

For allowances currently held by serving incumbents, there are two separate categories. Where the amount of the allowances does not represent a significant proportion of the current recipients' pay, sectoral management will immediately engage with staff representatives to negotiate elimination of these payments, using every possible avenue available under the current Croke Park Agreement. For those large allowances, which represent a significant element of the recipients’ pay, management will be acting immediately, at sectoral level, to open discussions with a view to consolidating these allowances into the core pay of the recipients.

Ministerial Responsibilities

Questions (83)

Brendan Smith

Question:

83. Deputy Brendan Smith asked the Minister for Jobs; Enterprise and Innovation the statutory powers that have been delegated to Ministers of State in his Department; and the date on which the statutory powers were delegated. [40783/12]

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Written answers

There are two Minister of State assigned to my Department; Mr Sean Sherlock, T.D., Minister for Research and Innovation and Mr John Perry, T.D., Minister for Small Business. A range of functions pertinent to his responsibilities in the area of Research and Innovation was delegated to Minister Sherlock in the Enterprise, Trade and Innovation (Delegation of Ministerial Functions) (No. 4) Order 2011 published under S.I. No. 241 of 2011. A separate Delegation of Function Order was issued as regards small business development in respect of Minister Perry in the Enterprise, Trade and Innovation (Delegation of Ministerial Functions) (No. 5) Order 2011 under S.I. No. 242 of 2011. Both Orders took effect from 24 May 2011, the date on which they were signed by An Taoiseach. Copies of the Orders are available on the Irish Statute Book website at www.irishstatutebook.ie.

Business Regulation

Questions (84)

Dara Calleary

Question:

84. Deputy Dara Calleary asked the Minister for Jobs; Enterprise and Innovation his policy on reducing red tape for business; the role his Department takes in the cross Government measurement and reduction of administrative burdens; if he expects the 25% target in the reduction of red tape to be reached by the end of this year; the details of a project to measure the burden imposed by regulation under the responsibility of seven Departments and Revenue that was initiated in September 2011 and the results to date; and if he will make a statement on the matter. [40850/12]

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Written answers

I refer the Deputy to my reply to Dáil Question No. 583 of 18 September 2012 in which I set out the actions being taken by my Department to reduce the administrative burden on business.

My Department also coordinates the cross-Government measurement and reduction exercise towards the 25% target by the end of 2012. A project to measure the burden imposed by regulation under the responsibility of seven Departments and Revenue was initiated in September 2011. The project is being carried out in two phases or clusters. Cluster A consists of Revenue and the Departments of Social Protection, and Communications, Energy and Natural Resources. Cluster B consists of the Departments of Transport, Tourism and Sport; Health; Environment, Community and Local Government; Agriculture, Food & Marine, and Public Expenditure and Reform.

Each participating Department has responsibility for measuring the relevant administrative burdens arising from the legislation under its responsibility. It must then plan how it will achieve the remaining reductions to reach the target and report to Government with its Simplification Plan. My Department engaged consultants to provide training for Departments in the Standard Cost Model, an internationally recognized method of measuring administrative burdens on business. In addition, my Department provides operational support to Departments as they carry out the measurement exercise.

The Revenue’s report on its administrative burden reductions, which have reached the 25% target, has been published on its website. The Department of Social Protection intend to publish its report shortly. The remaining participating Departments are expected to report by end 2012.

The Department of Jobs, Enterprise and Innovation has already achieved a 24.5% reduction in the areas of Company Law, Employment Law and Health and Safety Law. This has been achieved, in particular, due to the modernisation work of the Companies Registration Office and the Health and Safety Authority.

The Central Statistics Office has achieved a 30% reduction in measured burdens, significantly beyond the target.

Youth Unemployment Data

Questions (85)

Michael Conaghan

Question:

85. Deputy Michael Conaghan asked the Minister for Social Protection the progress being made in response to the call from European Commission President Jose Manuel Barroso to create an action team and develop a strategy to tackle Youth Unemployment. [40739/12]

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Written answers

In response to the proposals made by President Barroso, action teams composed of national and Commission officials were set up in a number of Member states to re-orientate existing EU structural funding towards youth employment initiatives. As a direct result of the work of the action team for Ireland, €25 million of funding was re-allocated to the integrated Youthreach programme which provides education, training and work experience to young people who have left school early without any qualification or vocational training. This will ensure that 3,700 training places for early school leavers are maintained until end 2013. Another initiative arising directly from the Commission's proposals, has been the inclusion of youth unemployment as one of the four thematic themes eligible for funding under the €20m Labour Market Education & Training Fund (LMETF).

More generally, the Government’s primary strategy to tackle youth (and overall) unemployment is to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth. Past experience suggests that youth unemployment, which tends to rise relatively rapidly in a downturn, can be expected to fall relatively rapidly during the recovery.

In addition to promoting economic recovery, the Government recognises the need for interim measures to support the young unemployed and keep young jobseekers close to the labour market. The main initiative in this regard is Pathways to Work which is the main policy focus for getting the long-term unemployed (including those aged under 25) back into employment by providing job search assistance, work experience and training.

In terms of job search assistance, some 17,000 young people registered with Employment Services this year up until September 2012, representing 37% of all registrants. Registering with Employment Services gives job-seekers access to guidance interviews, job search assistance, and training courses, as well as self-service job-seeking options.

In terms of work experience, JobBridge (the National Internship Scheme), has seen 2,600 placements of young people aged under 25 during its first year of operation.

In addition, over 18,000 persons aged 25 and under completed a training course with FÁS in 2011 (excluding evening courses). Training allowances on eligible courses exceed what a young person would receive in jobseekers’ payments, providing an incentive to take up training programmes.

The European Commission is currently reviewing "youth guarantee" policies across the Member States with a view to making proposals for a European-wide approach. There is considerable variation among Member States with regards to the possible implementation of any such guarantee, in terms of the target groups covered and the extent and nature of the policy commitments made. My Department is also reviewing arrangements here in the light of these various approaches. The Commission’s proposals are expected to be published in December, and achieving political agreement on these proposals in the Council will be a major objective of Ireland’s Presidency in the first half of 2013.

Pension Provisions

Questions (86)

Patrick Nulty

Question:

86. Deputy Patrick Nulty asked the Minister for Social Protection if she will amend the 1994 homemaker scheme to make it retrospective in view of the impact of changes to the pension system in view of the fact that it is adversely impacting on women born between 1946 and 1954; and if she will make a statement on the matter. [40762/12]

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Written answers

The homemaker's scheme makes qualification for State pension (contributory) easier for those who take time out of the workforce for caring duties. The scheme which was introduced in and took effect from 1994 allows up to 20 years spent caring for children under 12 years of age or incapacitated adults to be disregarded when a person’s social insurance record is being averaged for pension purposes.

The scheme will not, of itself, qualify a person for a pension. The standard qualifying conditions, which require a person to enter insurance ten years before pension age, pay a minimum of 520 contributions at the correct rate and achieve a yearly average of at least 10 contributions on their record from the time they enter insurance until they reach pension age, must also be satisfied.

There are a number of significant challenges currently facing the Irish pension system. At present, there are six people of working age for every pensioner and this ratio is expected to decrease to approximately two to one by 2050. In addition, those aged over 65 will account for a greater proportion of the population while the proportion who are of working age is expected to decline. Therefore, the task of financing increasing pensions will fall to a diminishing share of the population. With increases in life expectancy, more people are living to pension age and living longer in retirement and the period for which a pension will be paid will be greater than the period for which a pension is paid at present. This has obvious and significant implications in relation to the future costs of State pension provision and for the sustainability of pension provision into the future. In addition to this, spending on social protection accounts for nearly 40% of current Government expenditure and in the context of the current fiscal crisis savings have to be found in the social welfare system.

For this reason there are no plans to extend the homemakers scheme as outlined by the Deputy.

People who do not qualify for the homemakers scheme as they had caring duties prior to the introduction of the scheme in 1994 may qualify for a reduced rate of SPC as a yearly average of only 10 along with 10 years' paid contributions over a working career is sufficient to qualify for a minimum SPC. Alternatively, they may qualify, depending on their means, for a higher rate of State pension (non-contributory).

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