Written Answers Nos. 123-144
123. Deputy Simon Harris asked the Taoiseach if he will outline in tabular form the commitments in the Programme for Government pertaining to his ministerial portfolio; the current status of these commitments in terms of implementation; and if he will make a statement on the matter. [42886/12]
View answerThe current status of the commitments in the Programme for Government assigned to my Department are set out in the accompanying Table. Last March, the Tánaiste and I launched the Programme for Government Annual Progress Report 2012 setting out the Government’s work and achievements in its first year in office. There has been good progress to date. The Department of the Taoiseach has undergone significant restructuring to better support our goals, including the establishment of a new office to monitor the Programme for Government.
Significant changes have also been introduced underlining the Government's commitment to Dáil reform. These include specific measures to enhance the role and involvement of T.D.s in Dáil business, improvements to the Committee system and enhancing the involvement of the Dáil on EU matters.
Prior to the summer recess the Dáil and Seanad passed Resolutions approving the calling of a Constitutional Convention. The Tánaiste and I hope to announce the name of the chairperson of the Convention shortly, and it is expected that the Convention will hold its inaugural meeting soon after that.
|
Commitment |
Status |
|
We will require Departments to publish Regulatory Impact Assessments before Government decisions are taken, thereby offering a further channel to obtain the views of civil society on new rules and regulations. |
In Progress |
|
Referendum on the Abolition of the Seanad |
In Progress |
|
We will establish a Constitutional Convention to consider comprehensive constitutional reform, with a brief to consider, as a whole or in sub-groups, and report within 12 months on the following: Review of our Dáil electoral system, Reducing the Presidential term to 5 years and aligning it with the local and European elections, Provision for same-sex marriage, Amending the clause on women in the home and encourage greater participation of women in public life, Removing blasphemy from the Constitution, Possible reduction of the voting age, Other relevant constitutional amendments that may be recommended by the Convention. |
In Progress |
|
Reduce the number of committees and give key committees constitutional standing: the Dáil needs fewer but stronger committees, resourced properly. |
Completed |
|
We will introduce a role for the Ceann Comhairle in deciding whether a Minister has failed to provide reasonable information in response to a question |
Completed |
|
The chief executive of every state funded body will be required to attend the relevant Oireachtas committee on a regular basis to answer oral parliamentary questions that can be submitted by any member, on a similar basis to the attendance of Ministers before the full Dáil. |
Action Required |
|
We will amend Dáil standing orders to ensure that replies to written questions are furnished within a specified number of days, even during Dáil recess. |
Action Required |
|
To make the oral question process more effective, we propose to increase the time allocated to oral questions. To provide balance, there will be a reduction in the number of oral questions being submitted to one per member. |
In Progress |
|
A member must be present in the chamber when his or her question is reached, although they may defer to another member the right to ask a supplementary question |
In Progress |
|
We will legislate on the issue of cabinet confidentiality. |
Cabinet confidentiality is provided for in Constitution |
|
We propose an Investigations, Oversight and Petitions Committee of the Oireachtas. It would be a powerful committee, constructed on the lines of the Public Accounts Committee, bi-partisan in structure and chaired by a senior member of the opposition. |
Completed |
|
The Committee would receive parliamentary petitions from individuals and groups in the community seeking the redress of grievances connected with the public services of the State and with the public administration generally. Its functions would be to act as a "clearing house", directing complaints to those bodies most competent to act on them: the Ombudsman, the Data Protection Commissioner, the Local Government Auditor, the Oireachtas committee that has oversight of the relevant Department, and so on. |
Completed |
|
We will refer to the Constitutional Convention, the issue of reducing the Voting Age to 17 and giving citizens the right to vote at Irish Embassies in the Presidential election. |
In Progress |
|
We will ask the Constitutional Convention, which is examining electoral reform, to make recommendations as to how the number of women in politics can be increased. |
In Progress |
|
We will introduce a new code of practice for the use of the government jet, ensuring transparent and cost effective travel. |
Use of jet much reduced |
|
We will give committees the power to introduce legislation, while a new 10 Minute Rule will allow backbench TDs to introduce their own Bills. We will also tackle the huge over-use of guillotines to ram through non-emergency legislation |
In Progress |
|
We will introduce a package of changes that will bring about a 50 per cent increase in Dáil sitting days. Dáil Éireann will in future meet four days a week. There will be a summer recess of just six weeks and significantly reduced breaks at Christmas and Easter. We will abandon the practice of providing a “mid-term break” – a full week off at St Patrick’s Day and Hallowe’en. When the Dáil is not in session the Committees shall agree by roster that a particular Committee shall meet in the Dáil Chamber. |
In Progress |
|
We propose to break the Government monopoly on legislation and the stranglehold over the business of the Dáil, by providing that the new Friday sittings will be given over exclusively to committee reports and private members business except where urgent government business must be taken. |
In Progress |
|
We will enhance the democratic process by involving public representatives at an earlier stage of the legislative process, particularly before Bills are published. We will amend cabinet procedure instructions so as to allow government to publish the general scheme of a Bill so that Oireachtas Committees can debate and hold hearings at an early stage. |
Completed |
|
While recognising that there may be exceptional circumstances in which debate may need to be concluded by a given deadline, we will restrict the use of guillotine motions and other procedural devices that prevent Bills from being fully debated, so that guillotining is not a matter of routine as it has become at present, particularly at the end of a session. |
In Progress |
|
We will also deal with the related problem of legislation being shunted through at high speed and will ensure that Dáil standing orders provide a minimum of two weeks between each stage of a Bill, except in exceptional circumstances. |
Action Required |
|
In order to enhance the role of the legislative committees, we will organise a committee week every fourth sitting week. The Dáil plenary will sit only for questions, including Leaders’ Questions and the order of business and the remainder of the day will be taken up in committee. |
Action Required |
|
We will establish a petition system to the Dáil, similar to that operating in the European Parliament, to be managed by a specific Dáil committee that will investigate and report on petitions which raise issues warranting attention. |
Completed |
|
We will enhance the parliamentary relationship with the European Parliament in conjunction with Ireland’s MEPs. These arrangements will include regular attendance by MEPs at relevant Dáil committees. |
Completed |
|
We will significantly revamp the adjournment debate format. It will be renamed the topical issue debate. There will be a minimum of 5 topical issues. These will be taken in the middle of the day and there will be provision for questions at the end. A Minister or Minister of State from the relevant Department will be present and there will be an end to the practice of one junior Minister reading out scripts on behalf of a number of Departments about a range of issues of which he or she knows nothing. |
Completed |
|
The standing orders on urgent issues are used regularly to attempt to raise issues that are not urgent and such requests are almost invariably refused. We will make the Dáil rules for raising urgent issues more meaningful by requiring a minimum number of signatories for such a request. In future, Standing Order 32 requests will not be read out. |
Completed |
|
The Taoiseach will be obliged to brief the Oireachtas prior to attending European Council meetings and to engage with the Oireachtas in debate on EU issues of national significance and concern. |
Completed |
|
The Oireachtas will devote a full week each year to debating major EU issues of concern to Ireland such as the Draft Annual Work Programme, Green and White Papers and proposals for EU budget co-ordination. |
In Progress |
|
The Oireachtas will be linked up with the Irish offices of the European Commission and the European Parliament in communicating Europe to the Irish people. Outreach programmes, meetings and competitions particularly in schools will be organised and TDs and Senators invited to participate. |
In Progress |
|
Under the Lisbon Treaty provisions the Oireachtas is entitled to receive all documents produced by the EU Commission at the same time as the EU institutions and the Irish Government receive them. We will ensure all EU documents are forwarded to the Oireachtas through the Ceann Comhairle and the Cathaoirleach. They will transmit them to the Oireachtas library and the relevant Committees. Every TD and Senator will be informed of the documents as they arrive, so that they can engage in EU matters that concern or interest them. |
Completed |
|
We propose that Oireachtas Committees will play the major role in scrutinising the EU in the coming years. Greater emphasis will be placed on deepening the involvement in EU matters of the Oireachtas committees that shadow the work of each Government Department. We will oblige all sectoral committees to deal with EU matters that come within their remit within a defined period of time. |
In Progress |
|
Committees will be supplemented by a system of subcommittees and a system of rapporteurs who have a particular interest in an area of policy or scrutiny and who volunteer to carry out an in-depth study for the relevant committee. |
In Progress |
|
The Regulatory Impact Assessments prepared for Ministers on all EU Directives and significant Regulations will be forwarded automatically to the relevant sectoral Oireachtas Committees. These Committees should advise the Minister and the Joint Committee on European Affairs as to whether the transposition should take place by Statutory Instrument or by primary legislation. Where primary legislation is recommended the full Oireachtas plenary process should be followed. |
In Progress |
|
All Ministers will be obliged to appear before their respective Committees or before the Committee on European Affairs prior to travelling to Brussels for meetings of the Council where decisions are made. |
In Progress |
|
We will reduce the size of the Department of the Taoiseach, transforming it into the equivalent of a Cabinet Office that oversees the delivery of a new Programme for Government. |
Completed |
|
Require Departments to carry out and publish Regulatory Impact Assessments before Government decisions are taken. |
In Progress |
|
Prioritise a programme of law reform arising out of the recommendations made by the Law Reform Commission. |
In Progress |
|
We are fully committed to the EU2020 strategy and its creation of employment and smart, sustainable and inclusive growth. |
In Progress |
|
We will commission an independent audit into the transposition and implementation of EU legislation, placing priority on laws and regulations that caused concern or deemed burdensome to Irish business. We will put in place a mechanism across Government to accelerate implementation of directives, involving relevant Departments and the Attorney’s Office. |
In Progress |
|
We will rationalise regulators to strengthen consumer regulation and promote the consumer interest. |
In Progress |
124. Deputy Thomas P. Broughan asked the Taoiseach the cost and public procurement process for the Blue Star EU education programme; if there was a tendering competition and if he will confirm whether the body (details supplied), that was awarded the contract, the only non-governmental organisation which tendered and if this was the cheapest tender in the competition; and if he will make a statement on the matter. [43195/12]
View answerThe aim of the Blue Star programme is to foster better understanding and knowledge among primary school children of the EU and how the EU affects our lives.
An invitation to tender for the role of National Coordinator for the programme was published on the eTenders Public Procurement website on 12 October 2011. Details are available here - http://www.etenders.gov.ie/search/show/search_view.aspx?ID=OCT275739.
Five proposals were received, four from NGOs or other firms within the State and one from outside the State.
The most economically advantageous tender was received from European Movement Ireland for €39,785, and, accordingly, the contract to manage the programme was awarded to EMI.
Over 30 schools in 12 counties successfully completed the programme in the 2011-12 school year with around 2,500 pupils participating.
The Blue Star contract provided for extension of the programme subject to a satisfactory outcome of the first year’s pilot phase. On the basis of the successful implementation of the pilot phase programme by EMI, the programme is being renewed for another year. The cost of the 2012/2013 programme will be €48,000. It is expected that the 2012-13 programme will see a significant increase in the number of participating schools covering a wider geographical spread. A module on Ireland's forthcoming Presidency of the Council of the European Union will also be incorporated into the programme.
125. Deputy Simon Harris asked the Taoiseach when the chief executives of each bank which the State effectively owns or have large share holdings in, have last met with the Economic Management Council; when they are next due to attend such a meeting. [43206/12]
View answerThe Government has been working closely with the Irish banks to ensure that the banking sector supports economic recovery. As part of this ongoing process the members of the Economic Management Council last met with the banks on 26th June. I expect that members of the Council will meet with the banks again later in the year.
126. Deputy Gerry Adams asked the Taoiseach the number of staff employed in the Office of the Parliamentary Counsel; the number that were employed in that office in each year since 2007; if he is satisfied that the office is working effectively and efficiency; if any reviews have been undertaken to assess any capacity constraints in the office; and if he will make a statement on the matter. [43214/12]
View answerThere is currently a whole-time equivalent of 27.4 permanent staff in the Office of the Parliamentary Counsel (OPC) to draft legislation. Following a recruitment competition, one further staff member is scheduled to join the Office at end-October – bringing the total number of permanent staff in the OPC to 28.4.
The permanent staff complement is augmented as necessary by drafters engaged on a contract basis – presently two such drafters work for the Office, bringing the overall number of staff drafting legislation in the Office to 30.4.
The above figures do not include the administration services staff, which the OPC shares with the Advisory Counsel staff in the Office of the Attorney General.
The number of drafters working in the OPC in each year 2007 - 2011 is set out in the following table.
|
Year |
Drafters |
Contract |
|
|
Employed |
Drafters (*) |
Total |
|
|
2007 |
18.6 |
4.41 |
23.01 |
|
2008 |
21.0 |
4.15 |
25.15 |
|
2009 |
23.8 |
5.33 |
29.13 |
|
2010 |
26.8 |
3.07 |
29.87 |
|
2011 |
26.8 |
2.37 |
29.17 |
The numbers and skills of all staff are kept under constant review to ensure that the Office is able to provide the level of drafting services required by the Government. The resources available for drafting have, notwithstanding increasing demands, been able to meet the needs of the Government. I am aware and have publicly acknowledged that this has involved extraordinary efforts on the part of the staff involved.
(*) Whole time equivalent used as the actual number can fluctuate during the year
127. Deputy Simon Harris asked the Tánaiste and Minister for Foreign Affairs and Trade if he will be attending the EU Foreign Affairs Council on 15 October 2012; if he expects the issue of a ban on Israeli goods to be discussed; his views on this matter; and if he will make a statement on the matter. [42613/12]
View answer132. Deputy Luke 'Ming' Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will personally attend the EU Foreign Affairs Council meeting on 15 October; if he will be pushing strongly for a common EU policy on excluding Israeli settlement products from the EU market; if he will demonstrate leadership by implementing an individual member state ban on settlement produce; and if he will make a statement on the matter. [42902/12]
View answer133. Deputy Michael Creed asked the Tánaiste and Minister for Foreign Affairs and Trade if he will be attending the EU Foreign Affairs Council meeting on the 15 October 2012; if the Israeli Palestinian conflict will be discussed; the proposals, if any, he intends pursuing regarding an EU policy on excluding Israeli settlement products from the EU market; his views on a unilateral approach by him in this regard; and if he will make a statement on the matter. [43039/12]
View answer134. Deputy Seán Kyne asked the Tánaiste and Minister for Foreign Affairs and Trade his views on trade with Israel of products from disputed territories such as the illegal settlements; and if he will make a statement on the matter. [43426/12]
View answer136. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the discussions he has had with his European Union colleagues in relation to a National ban or EU ban on imports of settlement products from occupied Palestinian territories; and if he will make a statement on the matter. [43437/12]
View answer137. Deputy Peter Mathews asked the Tánaiste and Minister for Foreign Affairs and Trade his plans in respect of the EU Foreign Affairs Council (details supplied); and if he will make a statement on the matter. [43481/12]
View answerI propose to take Questions Nos. 127, 132 to 134, inclusive, 136 and 137 together.
I shall attend the EU Foreign Affairs Council on 15 October. I made the Government’s position on the Middle East Peace Process abundantly clear when I addressed the UN General Assembly on 28 September and will do so once again should the item be reached at the Foreign Affairs Council. I would expect the focus of any such discussion to be on the Palestinian intention to seek observer state status at the UN.
I have answered many questions on the issue of settlement products and the situation has not changed. Notwithstanding the EU’s view on the illegality of Israel’s settlement activity in the Occupied Palestinian Territories, there is, in my view, no prospect of securing agreement on the banning of products produced in the settlements. I am aware that Deputies have received many representations on this issue, and as stated in reply to an earlier question, I intend to write to all Deputies very shortly setting out in more detail the position in relation to settlement products.
128. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Foreign Affairs and Trade if he recognises that a company (details supplied) operates in illegal Israeli settlements and sells their products here. [42801/12]
View answerI understand the position set out in the Deputy’s question to be correct. I have stated before, in public and in the Dáil, my concerns about the Israeli settlements in the West Bank and my views about goods produced in the settlements, including my openness to consider an eventual EU ban on such produce. However, my Department cannot track the involvement of individual companies and the marketing of their products.
There is at present no prohibition on the entry to the EU market of goods originating in the settlements.
129. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the progress made to date in terms of providing assistance to the on-going Justice for Mark and Andreas Campaign, two Albanian men who were recently imprisoned for crimes they did not commit; if he will outline his future plans to provide assistance to the men in question, one of whom is married to an Irish national; and if he will make a statement on the matter. [42824/12]
View answerI am aware of the situation concerning the person referred to by the Deputy. As the person referred to is not an Irish citizen, it is not possible for my Department to offer him consular assistance. The Greek authorities are under no legal obligation to assist our Embassy with any requests made in connection with this investigation, as we have no locus standi in the matter. Embassies have certain rights of communication and contact with their citizens to facilitate the exercise of our consular functions under the Vienna Convention on Consular Relations (1963). Embassies have no such rights for other persons, even if they are related to those citizens.
As previously advised, this Department and the Embassy in Athens stand ready to authenticate any documents which would assist the case of the person in question if they are in a form suitable for authentication.
I am aware that the case is under appeal before the courts in Greece at present. In regard to other documents or records, including passport stamps and airline records, the person’s lawyers are best placed to advise on how such documents or records might be entered into evidence at any appeal. If such documents or records are held by Irish authorities or other entities, there are legal procedures which may assist in their retrieval but this Department has no role in that regard.
130. Deputy Simon Harris asked the Tánaiste and Minister for Foreign Affairs and Trade if he will outline in tabular form the commitments in the Programme for Government pertaining to his ministerial portfolio; the current status of these commitments in terms of implementation; and if he will make a statement on the matter. [42880/12]
View answerThe Annual Report on the Programme for Government was issued in March 2012 and provided a comprehensive update on the progress made in implementing the Programme for Government. The Deputy will be aware that the Government intends to publish the second annual report in March 2013. Outlined in the table below is the current status of each of the recommendations for which the Department of Foreign Affairs and Trade has primary responsibility.
|
Jobs Programme |
|
|
IN PROGRESS |
Initiate a long-term strategy to develop new markets in emerging economies |
|
Increasing Exports |
|
|
COMPLETED |
We will establish an Export Trade Council to strengthen cooperation and coordination across all key departments and agencies involved in promotion and development of trade and exports, whose membership will be divided equally between government and private sector representatives who have experience in establishing and growing export-oriented business. |
|
IN PROGRESS |
We will position Ireland to develop better trade relationships with emerging economies, including the establishment of local trade and investment teams. These teams will execute detailed local market plan, with progress against targets reviewed annually. |
|
IN PROGRESS |
We will develop cultural and diplomatic links with emerging markets including a scholarship scheme. |
|
IN PROGRESS |
We will actively develop the export of educational services. |
|
IN PROGRESS |
We will progressively implement the recommendations in the Trading and Investing in the Smart Economy Report |
|
Innovation and Commercialisation |
|
|
COMPLETED FOR 2012 |
We propose that the week in which the 9th May, “Europe Day” falls will be the occasion for a week-long parliamentary debate on Ireland’s priorities within the EU. The debate will review the national progress in implementing the current year’s work programme and focus on identifying the major issues of concern to Ireland for inclusion on the following year’s EU Draft work Programme. |
|
Passports, Citizenship, Immigration and Asylum |
|
|
IN PROGRESS |
Consideration will be given to transferring the passport service from the Department of Foreign Affairs to the Department of Justice to operate as an Independent Executive Agency under the aegis of that Department. |
|
Foreign Affairs, ODA and Defence |
|
|
IN PROGRESS COMPLETED |
We will ensure that our diplomatic network aids the repair of our reputation through a transparent and responsible approach to winning inward investment and we will recall Ireland’s Ambassadors within 100 days of this new government for briefings on a new approach to promoting and marketing Ireland as a country to do business in. |
|
IN PROGRESS |
We will review the 2006 White Paper on Overseas Development Aid. |
|
IN PROGRESS |
In times of humanitarian crises, we will unite NGOs that provide humanitarian aid to create a single appeals mechanism for national fundraising and public response. This will maximise publicity for the cause, the receipt of emergency funds and ensure the effective and co-ordinated dispersal of emergency aid. The State will financially support these NGOs in their response. |
|
IN PROGRESS |
We are committed to the 0.7% of GNP target for Overseas Development Aid. We will seek to achieve this by 2015. |
|
IN PROGRESS |
We will position Ireland, in particular Shannon airport, to become an international hub for the storage and distribution of emergency humanitarian supplies. |
|
IN PROGRESS |
We will seek to establish a Civilian Corps, which could allow some job seekers use and share their skills in developing countries while retaining some job seeker’s benefit. |
|
COMPLETED |
We will enforce the prohibition on the use of Irish airspace, airports and related facilities for purposes not in line with the dictates of international law. |
|
Northern Ireland |
|
|
IN PROGRESS |
We support the full implementation of the Good Friday Agreement and St. Andrew’s Agreement. |
|
IN PROGRESS |
Committed to publishing and acting on the recommendations of the first Review of the North-South Implementation Bodies and Areas for Co-operation; and we will progress the second Review, which will identity new areas for North South co-operation. |
|
IN PROGRESS |
Work for greater economic co-operation to accelerate the process of recovery and creation of jobs on this island. |
|
IN PROGRESS |
The threat from dissident paramilitary groups cannot be underestimated. We will foster the continuing strong relationships between An Garda Síochána and the Police Service of Northern Ireland to deal with this threat and we will also ensure the necessary resources to deal with these groups. |
131. Deputy David Stanton asked the Tánaiste and Minister for Foreign Affairs and Trade the changes, if any, which have been made to the Duty Officer Service dealing with the issuing of passports and other emergency situations outside of office hours; if the review of the service in the context of budgetary pressures has been completed; if changes are to be made as a result of this review; the impact of same on the level of service provision; and if he will make a statement on the matter. [42899/12]
View answerThe Passport Service operated by the Department of Foreign Affairs and Trade has public offices in Dublin and Cork as well as a production facility in Balbriggan and provides a Monday-Friday passport service to all its customers. In particular, applicants through the Passport Express postal service which is available at all Post Offices can normally expect to receive their new passports within ten days. The Passport Service also currently provides emergency out-of-hours passport services in Dublin and Cork. The Department also operates an out of hours Duty Officer arrangement to deal with consular and other non-passport emergencies. The need to assess all services with a view to achieving cost savings has given rise to a full review of the Department’s duty officer services in Ireland. This has resulted in a proposal for a new integrated duty officer service based in Dublin which will deal with all emergencies, including emergency passport services to the country as a whole. The cost of maintaining emergency passport duty officer services in Dublin and Cork separate from the diplomatic duty officer is no longer seen as justified from a cost/benefit perspective. For example, the emergency service in Cork costs €575 per week and has issued approximately 1.3 passports per week in the year to date. Departmental management and the Staff Side unions are working together to finalise the operational aspects of the proposed new integrated duty officer service. The sanction of the Minister for Public Expenditure and Reform for certain aspects will also be required. It is hoped that the new service will be operational from late November, yielding savings of in excess of €67,000 per annum.
135. Deputy Seán Kyne asked the Tánaiste and Minister for Foreign Affairs and Trade the concerns he has at the cancellation of the Pride Parade in Belgrade, Serbia; and his views that such a disregard for freedom of expression and belief, principles which are at the core of the European Union, must be addressed on account of that country's desire to joint the EU. [43427/12]
View answerI note with great regret the decision of the Serbian authorities to ban the Belgrade Pride Parade for the second year in a row on security grounds. The European Union is first and foremost a community of values based on respect for human rights and fundamental freedoms. These include freedom of assembly, freedom of expression and non-discrimination on the basis of gender, racial or ethnic origins, religion, belief, or sexual orientation.
These are values upon which European Union is built, and it is essential that Serbia, as a candidate country for membership, respects them.
I would urge the Serbian authorities to fully protect the rights of lesbian, gay, bisexual and transgender (LGBT) persons in Serbia. Furthermore, I fully expect the Serbian authorities to investigate and bring to justice those whose threats and intimidation were judged sufficiently serious to ban the parade on security grounds.
138. Deputy Jonathan O'Brien asked the Minister for Finance if schools have experienced difficulties resulting from the directive of the Revenue Commissioners to regard school boards of management as principal contractors in respect of Relevant Contracts Tax and VAT, with effect from 1 January 2012; his views on the challenges that school boards are experiencing in complying with the very significant administrative burden arising from operating Relevant Contracts Tax. [43105/12]
View answerI am informed by the Revenue Commissioners that Relevant Contracts Tax (RCT) is a withholding tax system that operates in the construction, forestry and meat processing sectors. Principal contractors are defined in the legislation (section 530A of the Taxes Consolidation Act 1997) as including “any board or body established by or under statute … and funded wholly or mainly out of funds provided by the Oireachtas”. As such, school Boards of Management are principal contractors for the purposes of RCT. Under VAT law, where a principal contractor (generally as defined for RCT purposes) receives services consisting of construction operations (again generally as defined for RCT purposes) the principal is an accountable person and is liable to pay the VAT chargeable on those services on a reverse charge basis. In this regard, where a school Board of Management receives services consisting of construction operations the Board must register for VAT and account for VAT on the received services.
I am also informed that Finance Act 2011 did not introduce any change in terms of the obligations of Boards of Management to operate RCT or VAT. Nor did the Revenue Commissioners issue a directive in this regard. Principal contractors, including school Boards of Management are, and always were, required to deduct tax from the payments made to subcontractors and pay it over to Revenue. As it is recognised that it would be undesirable to deduct tax from compliant subcontractors, provision is made for compliant subcontractors to receive payments without deduction of tax. The need to ensure tax compliance by subcontractors is particularly important where the Exchequer is the ultimate source of the funds being paid out by school Boards of Management and other principal contractors. RCT and the VAT reverse charge system play an important role in ensuring tax compliance by subcontractors in these sectors.
From 1 January 2012, the Revenue Commissioners have substantially modernised the operation of RCT following the introduction of a dedicated online facility which offers principal contractors a fast, efficient and paper free system. This has streamlined the process for the submission of information and payments to Revenue and has had the effect of significantly reducing the administrative burden associated with RCT.
I am further informed by the Revenue Commissioners that they are aware of the difficulty some school Boards of Management may be having in fulfilling their obligations under the RCT and VAT systems. Revenue has met with the Department of Education and Skills regarding the obligations of Boards of Management under the RCT and VAT systems and has also met with representatives of some Boards of Management. In addition, Revenue has participated in a series of seminars throughout the country during September/October 2012 organised by the Joint Managerial Board in conjunction with the Catholic Primary School Management Association. These seminars are aimed at school Principals, members of boards of management, bursars and secretarial/accounts personnel who are likely to be in receipt of State funding for construction projects with a view to assisting them with their RCT and VAT responsibilities. Detailed guidance notes specifically tailored for school Boards of Management regarding the operation of RCT and VAT were made available by Revenue in July and the availability of these notes has been highlighted to the Boards of Management representative bodies. They have been published on the Revenue website www.revenue.ie.
Finally, having regard to the pressures on the public finances, it is important that the RCT and VAT systems are implemented correctly in order to minimise tax evasion in the construction sector particularly where the project involves substantial State funding. The new online system introduced by Revenue has significantly simplified the RCT process for principal contractors, including school Boards of Management.
139. Deputy Simon Harris asked the Minister for Finance if he has satisfied that the banks are utilising public funds which were given to them for the purpose of mortgage write down. [43206/12]
View answerAs the Deputy will be aware, the Irish banks were required to raise €24.0bn in capital following the 2011 Prudential Capital Assessment Review (PCAR) in order to remain above a minimum capital target of 10.5% Core Tier 1 in the base scenario and 6% Core Tier 1 in the stress Scenario.
The Central Bank made its decision on required recapitalisation based on loan-loss projections along with further calculations concerning the prospective income, expenditure, and deleveraging plans of the banks as outlined in the 2011 Financial Measures Programme (FMP) Report.
In order to arrive at a stressed loan-loss estimate that was fully credible to the international markets, the Central Bank engaged BlackRock Solutions, a specialist in analysing potential loan losses under stressed conditions. However I must again reiterate that the stress test scenarios were designed to represent extreme but plausible events, but they were not forecasts.
In terms of mortgages, the Central Bank has informed me that the following projected losses for the period 2011-2013 were used for capital determination purposes:
|
€million |
AIB |
BOI |
ILP |
EBS |
Total |
|
- |
Base |
Stress |
Base |
Stress |
Base |
Stress |
Base |
Stress |
Base |
Stress |
|
Residential Mortgages |
2,005 |
3,066 |
1,361 |
2,366 |
1,624 |
2,679 |
848 |
1,380 |
5,838 |
9,491 |
|
Total |
9,545 |
12,604 |
7,380 |
10,119 |
2,114 |
3,421 |
975 |
1,577 |
20,014 |
27,722 |
In terms of troubled mortgage customers, the Central Bank is now engaging with all regulated mortgage lenders to ensure that each lender has appropriate strategies and plans to deal appropriately with all its customers experiencing mortgage difficulties. In addition, the protections of the Central Bank’s Code of Conduct on Mortgage Arrears will continue to be available to co-operating borrowers who are experiencing difficulty on their mortgage in respect of their principal private residence.
140. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the haulage industry; and if he will make a statement on the matter. [43281/12]
View answer160. Deputy Brendan Griffin asked the Minister for Finance his views regarding proposals from a haulier (details supplied) in relation to fuel cost and opportunities to boost Exchequer income; and if he will make a statement on the matter. [43009/12]
View answerI propose to take Questions Nos. 140 and 160 together.
As the Deputy is aware a working group was set up between officials of my Department, the IRHA and members of the Oireachtas. This working group had a series of meetings to discuss issues of concern to the haulage industry including the matter of an essential users rebate. I have recently received a submission from the group and I am considering the matters raised.
141. Deputy Tony McLoughlin asked the Minister for Finance if his attention has been drawn to reports by licensed retailers of cigarettes that illegal and smuggled cigarettes are being allegedly advertised on flyers and are being distributed throughout the town of Sligo; if he will advise of the actions that Customs and Excise officers are doing to prevent this activity; and if he will make a statement on the matter. [43471/12]
View answerThe 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. In 2010, Revenue established a high-level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax evasion and to oversee and optimise the detection of contraband and counterfeit tobacco products. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include the adoption of a comprehensive tobacco strategy, which is underpinned by annual action plans. This 3-year (2011-2013) strategy, which is published on Revenue’s website www.revenue.ie, includes a series of programmes which are designed to complement each other in targeting the supply and demand sides of the market for contraband tobacco in Ireland.
Revenue’s strategic-level plans include ensuring that the legitimate trade remains compliant; delivering more effective and visible interventions through enhanced capability and better deployment of resources; further development of cooperation and intelligence sharing at organisational, national and international level; a commitment to prosecute all serious cases of tobacco tax evasion and a focus, in partnership with other Government agencies, on reducing the demand for contraband tobacco.
With regard to the activity referred to in the question, I am informed that Revenue regularly carries out covert and overt intelligence led operations in an effort to deter and detect these individuals. It is not possible or desirable for operational reasons to disclose any details in relation to these activities. It can however be confirmed that to date in 2012 (30/9/12) there have been 57 seizures of 120,000 cigarettes and 33 kg of tobacco in the County Sligo area.
If the Deputy has specific information that would be helpful to Revenue he may wish to contact their free phone number 1800 295295.
142. Deputy Peter Mathews asked the Minister for Finance the total household debt as a percentage of gross national product; the total corporate debt as a percentage of GNP; the total Government general debt as a percentage of GNP; and if he will make a statement on the matter. [42596/12]
View answerUsing the Central Bank’s Quarterly Financial Accounts (Q1 2012) – Table 8.1b - total liabilities outstanding of households and non-profit institutions serving households, and the gross national product (GNP) figure for the year up to the end of the first quarter of 2012, household debt stood at 148 per cent of GNP at the end of the first quarter of 2012. Using the Central Bank’s Quarterly Financial Accounts (Q1 2012) – Table 3.1b – Loans and securities of non-financial corporations, and the GNP figure for the year up to the end of the first quarter of 2012, corporate debt stood at 276 per cent of GNP at the end of the first quarter of 2012.
General Government Debt at the end of 2011 is estimated at €169,131 million or 133 per cent of GNP. The Deputy should be aware that General Government Debt, the wider measure of Government Debt used for comparative purposes in the EU, is usually expressed as a percentage of GDP. Following this convention, General Government Debt as a percentage of GDP at the end of 2011 was 106 per cent. National Debt, which represents the indebtedness of the Exchequer, is usually expressed in terms of GNP. Updated General Government Debt figures for 2011 will be issued when the September Maastricht Returns are published later this month.
143. Deputy Pearse Doherty asked the Minister for Finance if he will quantify as of 31 December 2011 and as at 30 September 2012 the number of employees at the Central Bank of Ireland whose annual salary including non-discretionary payments in cash, is in excess of €200,000 per annum. [42677/12]
View answer144. Deputy Pearse Doherty asked the Minister for Finance if a request has been made by him to the Central Bank of Ireland that any staff member earning in excess of €200,000 per annum inclusive of non-discretionary cash payments waive 15% of their salary or a sum to reduce their salary inclusive of non-discretionary cash payments to €200,000 whichever reduction is lesser; if such a request was made, the date of the request; the number of employees whose annual salary including non-discretionary payments in cash was in excess of €200,000 per annum at that date; the number of employees who acceded to the waiver request; and the number of employees who rejected the waiver request. [42678/12]
View answerI propose to take Questions Nos. 143 and 144 together.
I have been informed by the Central Bank that as at both 31st December 2011 and 30th September 2012, the Central Bank of Ireland had five employees whose annual salary, including non-discretionary payments in cash, was in excess of €200,000 per annum.
Under the Central Bank Act 1942 and the Statute of the European System of Central Banks (ESCB), the Government has no role in the setting of terms and conditions of employment in the Central Bank. The Act and the Statute guarantee the independence of the Governor in carrying out his ESCB related functions and control over pay and conditions is seen as a necessary part of that independence.
Salary reductions and pension-related reductions were applied in the Central Bank under the provisions of the Financial Measures in the Public Interest Acts as was the case in the wider public service. Furthermore, my Department wrote to the Governor of the Central Bank in 2011 outlining the Government’s approach to pay levels to senior public servants, in particular those whose remuneration exceeds €200,000 per annum. It was suggested that the Central Bank would provide for disclosure where employees are in receipt of remuneration exceeding the €200,000 per annum threshold. The Governor responded positively saying that the Central Bank have greatly increased the amount of information regarding senior staff remuneration in recent years and sees advantage in continuing this trend and making disclosures in respect of all employees where total remuneration exceeds €200,000 per annum.
In that respect the Central Bank publishes information related to remuneration of executive and non-executive directors in its annual report. In 2011 the Governor of the Central Bank waived €41,740 of his total remuneration for that year and has indicated that he will waive €63,324 of his total remuneration in 2012.
