Tuesday, 20 Nov 2012

Written Answers Nos. 162-182

Cabinet Committee Membership

Questions (162)

Gerry Adams

Question:

162. Deputy Gerry Adams asked the Taoiseach the Cabinet committees and senior official groups on which he or his Department is represented. [51452/12]

Written answers

The Taoiseach

I am a member of the following Cabinet Committees:

Economic Recovery and Jobs

Social Policy

Climate Change and the Green Economy

European Affairs

Economic Infrastructure

Irish and the Gaeltacht

Public Service Reform

Health

Mortgage Arrears

Children's Rights Referendum (now concluded).

I am also of course a member of the Economic Management Council, which has the status of a Cabinet Committee.

My Department is represented on the following Senior Officials Groups:

Economic Recovery and Jobs

Social Policy

Climate Change and the Green Economy

European Affairs

Economic Infrastructure

Irish and the Gaeltacht

Health

Children's Rights Referendum (now concluded)

Labour Market Issues.

Question No. 163 answered with Question No. 161.

EU Presidency Expenditure

Questions (164, 165)

Michael Healy-Rae

Question:

164. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade as part of Ireland's hosting of the EU Presidency from January 2013, two contracts have been signed with two Dublin hotels (details supplied) to provide accommodation for the visiting delegations, the amount of money each of these contracts is costing the taxpayer; and if he will make a statement on the matter. [51293/12]

Michael Healy-Rae

Question:

165. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Foreign Affairs and Trade as part of Ireland's hosting of the EU Presidency from January 2013 contracts have been agreed with chauffeur firms, if he will provide the total cost of these five or six contracts to the Irish taxpayer; and if he will make a statement on the matter. [51294/12]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

I propose to take Questions Nos. 164 and 165 together.

The requirement for hotel accommodation for incoming delegations attending the eleven informal Ministerial meetings in Dublin during the forthcoming EU Presidency was advertised for tenders using the Government Procurement Portal www.etenders.gov.ie. The objective was to leverage the collective buying power of all Government Departments and Offices for these events and thereby secure better value. A good competitive response was received and the hotels mentioned in the Deputy’s question were identified as the most economically advantageous for the various events in question. Departments who will be hosting informal Ministerial meetings in Dublin will be contracting individually with these hotels for their requirements at the tendered rates.

While the precise number of rooms to be booked will vary between meetings, the Presidency will pay only for the hotel room for the Head of Delegation.

Similarly, it was decided in the interests of better competition to have an advertised tender for ground transport requirements during the Presidency. A primary competition was held to establish a framework of five suitably qualified service providers from whom a range of transport services will be procured by further competitive mini-tenders held by Departments/Offices over the coming months as and when needs arise. This framework is open to all Government Departments and Offices for their Presidency-related transport requirements. Details of the arrangements may be viewed on the National Procurement Service website www.procurement.ie.

The provision of transport by the Presidency will be strictly controlled. My expectation is that, due to the concentration of Presidency events in the Dublin area, and the economies envisaged, the accommodation and transport costs for the Presidency will be kept under tight control.

Human Rights Issues

Questions (166)

Maureen O'Sullivan

Question:

166. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will make representations regarding the Kurdish political prisoners, including a number who are elected members of the Turkish parliament, on hunger strike in Turkish prisons whose health is severely impaired; if he will express concern on the strict isolation of Mr. Ocalan as these matters are not helpful in finding a solution for the Kurdish conflict; and if he will make a statement on the matter. [51018/12]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

I was pleased to see reports indicating that the hunger strikes by Kurdish prisoners in Turkey ended over the weekend. I welcome the recent moves made by the Turkish authorities, including agreeing to allow family visits to Mr Öcalan, and the submission of a bill to Parliament which will allow suspects to use the Kurdish language during their defence statements in trials. My firm belief remains that the best way forward has to be through a process of outreach and dialogue. I would encourage all sides to redouble their efforts to address the Kurdish issue in a peaceful and democratic manner.

I also urge the Turkish Government to continue reach out to the Kurdish community. The escalation of PKK terrorist attacks makes it much harder to reach a solution, but the fight against terrorism must be conducted with due regard for human rights. As I stated in this House last week, Turkey, as an EU candidate, is expected to uphold the respect for human rights and fundamental freedoms that are core values of the EU. These are issues which will continue to be raised in the context of the EU’s ongoing dialogue with Turkey.

EU Programmes

Questions (167)

Joanna Tuffy

Question:

167. Deputy Joanna Tuffy asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the new European Endowment for Democracy; the contribution if any, Ireland will make to this organisation; Ireland's representation in the governance of this organisation; and if he will make a statement on the matter. [51174/12]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The European Endowment for Democracy (EED) is a new initiative established on foot of a Declaration adopted in December 2011 by the Member States and the EU Institutions that, in the words of its Statute, seeks to “to foster and encourage democratization and deep and sustainable democracy in countries in political transition and in societies struggling for democratisation”. On foot of a Polish initiative, the EED builds on the EU’s strong legacy in the promotion and development of democracy across the European continent and beyond. It is a welcome addition to the efforts to promote democratic reforms in the Union’s Eastern and Southern neighbourhoods.

The EED is formally established as a private foundation under Belgian law and, as such, is not an EU institution. The Board of Governors of the EED includes representatives from all the Union’s 27 Member States. It also includes representatives from the European Parliament, the European Commission and the European External Action Service. The Board of Governors chooses the EED’s Executive Director and its Executive Committee.

The EED currently has funding of some €15 million pledged by the Commission and several Member States. The money available to the EDD may still increase as the pledging process is not closed as yet. Due to current economic and financial circumstances, Ireland is not in a position to make a financial contribution to the EED at present. However the EED Statute provides for Member States to make contributions in kind. This enables EU Member States to contribute to the EED in a manner which is appropriate to their financial circumstances by organising seminars and conferences, as well as by sponsoring publications and training. Ireland will consider making contributions within this framework as circumstances permit.

Ireland is currently represented on the Board of Governors of the EED by an official in the Permanent Representation of Ireland to the European Union who also acts as the Irish delegate to the Working Party on Eastern Europe and Central Asia (COEST).

The first meeting of the EED took place in Brussels last week. At that meeting, the Board of Governors elected its Chair, co-opted three members of Civil Society to the Board and appointed three non ex-officio members to the Board.

Departmental Expenditure

Questions (168)

Brendan Smith

Question:

168. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the expenditure profile for his Department up to the end of October 2012; and if he will make a statement on the matter. [51412/12]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Monthly profiles for expenditure and receipts are in place in my Department and performance against profile is reported regularly to the Department of Public Expenditure and Reform and published by the Department of Finance as part of the Monthly Exchequer Statement. In some areas, expenditure and receipts are evenly distributed throughout the year. In other areas there are considerable variations that are foreseeable. The profiles as far as possible take account of known variations.

At the end of October, my Department had spent €581.3 m out of a total allocation for 2012 of €740.2m. This represents 78.5% of the annual allocation. It is expected that the year-end out-turn will be within the overall voted amounts. At the end of October, receipts classed as Appropriations-in-Aid were ahead of profile, largely due to increased issues of passports.

Diplomatic Representation Expenditure

Questions (169)

Robert Dowds

Question:

169. Deputy Robert Dowds asked the Tánaiste and Minister for Foreign Affairs and Trade if Ireland has embassies physically located in each of the G20 countries, particularly Brazil, South Africa, Mexico, Argentina, South Korea, Indonesia, Turkey and Saudi Arabia, and in the case of any of these countries where we do not currently have an embassy, if there are plans to open embassies in these countries to more accurately reflect the changing nature of the global economy. [51465/12]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Ireland’s diplomatic network includes 56 Embassies, 7 multilateral Missions and 10 Consulates General. This includes Brazil, South Africa, Mexico, Argentina, South Korea, Turkey and Saudi Arabia. Our Ambassador to Singapore is accredited to Indonesia on a non-resident basis.

The size and scale of our diplomatic network is considered by the Government on an ongoing basis. Any decision to adjust the State’s external representation by closing, opening or relocating missions, will have regard to national priorities and available resources.

Trade Missions Issues

Questions (170)

Brendan Smith

Question:

170. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the proposals, if any, he or a Minister of State in his Department have to participate in trade missions up to the end of 2012; and if he will make a statement on the matter. [51605/12]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The programme of Enterprise Ireland trade missions for 2012 was agreed by Minister Bruton and me in January. To date, sixteen trade missions have been completed and another two are scheduled to take place before the end of the year. Minister of State Costello and I are not planning to lead any further trade missions this year.

Since becoming Tánaiste and Minister for Foreign Affairs and Trade, I have always sought to promote Ireland’s economic interests wherever possible, whether at targeted events organised by Enterprise Ireland or in the course of broader working visits.

My colleague, the Minister of State for Trade and Development, Joe Costello TD, has also been active in promoting Ireland’s trade interests overseas. In addition to the Enterprise Ireland Trade Missions he led to Turkey and Russia in March and June of this year respectively, in October he led EI’s Trade Missions to Brazil and participated in Enterprise Ireland trade events and business meetings in Rome. This month he led EI’s trade mission to South Africa and he will tomorrow conclude a 5 day trade related visit to Ghana and Nigeria.

Property Ownership

Questions (171)

Pearse Doherty

Question:

171. Deputy Pearse Doherty asked the Minister for Finance if he will provide a breakdown by county of the amount of land repossessed by financial institutions since 2009 and the law in relation to mineral rights on lands repossessed by financial institutions. [50855/12]

Written answers

Minister for Finance

The Central Bank of Ireland has advised me that it does not collate statistics on the amount of land repossessed by financial institutions. The Central Bank publishes mortgage arrears and repossession statistics in respect of houses only. The latest figures for end Quarter 2 are available on the Central Bank’s website.

Policy and information in relation to mineral rights on lands repossessed is a matter for the Minister for Communications, Energy and Natural Resources.

Tax Reliefs Availability

Questions (172)

Seamus Kirk

Question:

172. Deputy Seamus Kirk asked the Minister for Finance if he will consider extending tax breaks for philanthropists who will make capital investment to particular health projects; and if he will make a statement on the matter. [51134/12]

Written answers

Minister for Finance

Section 848A of the Taxes Consolidation Act 1997 provides for a scheme of tax relief for donations to eligible charities and other approved bodies. An “eligible charity” means any charity which is authorised in writing by the Revenue Commissioners for the purposes of this scheme. An authorisation will not issue unless the applicant charity:

- is a body of persons or trust established for charitable purposes only, and

- applies its income for charitable purposes only, and

- has been granted exemption from tax (i.e. assigned a Charity (CHY) number) by the Revenue Commissioners for a period of not less than two years prior to the date of application for authorisation.

Therefore, provided the investment made by a philanthropist is made in the form of a donation to a body that holds charitable tax exemption, it would already qualify for tax relief.

Tax Reliefs Availability

Questions (173)

Michael Healy-Rae

Question:

173. Deputy Michael Healy-Rae asked the Minister for Finance if he will increase the tax relief allowance for home care services to ensure that home care remains a financially viable alternative to residential/hospital care for more demanding cases (details supplied); and if he will make a statement on the matter. [51500/12]

Written answers

Minister for Finance

It is a longstanding 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. The Deputy will be aware that tax relief is already available at the taxpayers’ marginal rate in respect of the cost of employing a person (including a person whose services are provided by or through an agency) to take care of either a family member who is totally incapacitated by reason of physical or mental infirmity or a relative who is totally incapacitated by reason of physical or mental infirmity. Relative in this context includes a relation by marriage or civil partnership and includes an individual in respect of whom the claimant is or was the legal guardian.

Tax relief may be claimed on the lower of the actual cost incurred in employing the carer or €50,000.

To extend the definition of incapacitation to include old age would not comply with the stipulation that an individual must be totally incapacitated by reason of physical or mental infirmity. Old age does not necessarily mean infirmity, as many elderly people live active and healthy lives. If an elderly person has an illness or is incapacitated, then they would be eligible individuals for the purposes of this tax relief.

I would point out that the Revenue Commissioners indicated in Tax Brief No. 65 of 2006 that services provided 'by or through an agency' includes services provided by or through the Alzheimer's Society of Ireland and Home Instead Senior Care.

IBRC Expenditure

Questions (174)

Pearse Doherty

Question:

174. Deputy Pearse Doherty asked the Minister for Finance the amount the Irish Bank Resolution Corporation has set aside for repaying overcharged Anglo Irish Bank customers. [50850/12]

Written answers

Minister for Finance

In its interim report of June 2011, the Bank disclosed that it had made a provision of €67m following an internal review of historical interest rate setting procedures as applied to certain loan accounts. I have been advised that this internal review, which was conducted in 2010, addressed the period from 1996 to 2004, to determine whether interest rates applied to customer loan accounts were consistent with the terms of the customer loan documentation.

I have been informed that the Bank is nearing completion of this project and has made refunds to affected customers. The total cost of the refunds is now estimated at €45m to €50m.

IBRC Legal Cases

Questions (175)

Pearse Doherty

Question:

175. Deputy Pearse Doherty asked the Minister for Finance if the statute of limitations applies to the Irish Bank Resolution Corporations repayment of overcharged Anglo Irish Bank customers. [50851/12]

Written answers

Minister for Finance

The issue of whether or not the statute of limitation applies to any specific scenario is a legal question, to be determined by a Court on the basis of the relevant legislation, the specific fact set and applicable timelines. I have been informed that following the Bank’s historical interest rate review project, undertaken in 2010, a decision was taken by the Bank not to rely upon the Statute of Limitations as a defence to any of those claims, even in circumstances where a valid claim for reimbursement of overcharged interest appeared to be out of time. However, the Bank is entitled to rely on the Statute of Limitations in certain circumstances as a defence to certain other claims.

IBRC Investigations

Questions (176)

Pearse Doherty

Question:

176. Deputy Pearse Doherty asked the Minister for Finance if he will identify the independent verifier used by the Irish Bank Resolution Corporation in calculations on which refunds to Anglo Irish Bank customers were based; and if he will outline the information that formed the basis of their calculations. [50852/12]

Written answers

Minister for Finance

I have been advised by IBRC that the Historical Interest Rate Review project, carried out a tender process for the appointment of an external advisor to conduct an independent third party review of the project. KPMG were subsequently appointed and carried out their review in two phases during 2011. Phase 1 covered the period 1996 to 2004 and KPMG reviewed the following:

- Project set up

- Resourcing

- Project governance

- Review of criteria for including / excluding accounts

- Testing of the calculation process including independent recalculation of a sample of affected loans

- Testing of the compounding process

During Phase 2 KPMG carried out an independent recalculation of a sample of loans from 1990 to 1995.

Tax Yield

Questions (177, 178, 179)

Ciara Conway

Question:

177. Deputy Ciara Conway asked the Minister for Finance with regard to the 0.6% levy on private pensions, the amount that has been collected to date; and if he will make a statement on the matter. [50993/12]

Ciara Conway

Question:

178. Deputy Ciara Conway asked the Minister for Finance regarding the 0.6% levy on private pensions, the amount of moneys collected and the amount that has been spent of the creation of jobs; and if he will make a statement on the matter. [50994/12]

Ciara Conway

Question:

179. Deputy Ciara Conway asked the Minister for Finance with regard to the 0.6% levy on private pensions, if he will provide a detailed breakdown of the amount of money earmarked for job creation that was spent in Waterford city and county; the number of jobs created as a result of this spending in Waterford city and county; and if he will make a statement on the matter. [50995/12]

Written answers

Minister for Finance

I propose to take Questions Nos. 177 to 179, inclusive, together.

The Government introduced a temporary levy on funded pension schemes and personal pension plans in order to fund the measures introduced in last year’s Jobs Initiative.

The measures introduced as part of the Jobs Initiative include a new 9% VAT rate on certain activities, the halving of the lower rate of PRSI and small amounts of additional current and capital expenditure.

Receipts from the pension levy amounted to €463 million in 2011. As of the end-October, total receipts from the pension levy this year amount to €490 million. This is broadly in line with the amounts anticipated to be collected over the period.

As regards the resources available for job creation these are detailed in the Revised Estimates for Public Services 2012 which was published earlier this year. Further details on specific measures can be provided by the relevant Ministers.

Employment data are presented in net terms and information on gross flows into and out of employment is not available, making it difficult to assess the number of jobs created by any policy initiative. For these reasons, it is not possible to provide figures on the number of jobs created by the Jobs Initiative in Waterford City and County.

Notwithstanding that quantifying the impact is difficult, I am confident that the measures introduced by the Government in May last year, 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. Encouragingly, there are signs of stabilisation in labour market conditions as evidenced by the standardised unemployment rate estimated from the live register.

Finally, I want to reiterate that addressing the difficulties in the labour market remains the Government’s biggest challenge and, accordingly, the Government is giving its highest priority to job protection and job creation.

Budget 2013

Questions (180)

Alan Farrell

Question:

180. Deputy Alan Farrell asked the Minister for Finance his views on the possibility of reforming the budget process to take into account the impact that budget 2013 announcements have on the retail industry in the run up to the Christmas period; and if he will make a statement on the matter. [51002/12]

Written answers

Minister for Finance

I am aware of the concerns about the impact of the current Budget timetable on Christmas trading volumes. The budget generally takes place in the first week of December in order to ensure that it is underpinned by the most robust data available including the very significant proportion of corporation and income tax revenues that are paid into the Exchequer in November. This enables an assessment of what impact revenue collection in the key month of November might have on budgetary plans for the following year.

That said, one of the reforms underway at European level concerns the bringing forward of a common budgetary timeline which will require that draft budgets be made public no later than 15 October each year. At this point, this new timeline seems likely to “kick-in” from 2013.

This means that much of our existing budgetary process, which is traditionally completed in the first week of December, will have to be finalised earlier in the year. While this will pose challenges for all concerned, effective action will be taken to ensure that we remain in full compliance with these requirements.

Banking Sector Remuneration

Questions (181)

Pearse Doherty

Question:

181. Deputy Pearse Doherty asked the Minister for Finance the number of letters that were issued by AIB to former employees of the bank requesting that they take a voluntary reduction in their pensions; the number of responses received by AIB to these letters; the number of responses that indicated the person would take a reduction and the percentage of reductions involved; the number of responses that have refused to accept a redundancy; and if he will make a statement on the matter. [51024/12]

Written answers

Minister for Finance

AIB has informed me that it is in an on-going process of writing to former senior executives of both AIB and EBS requesting a voluntary reduction in their pension levels. The individuals served in senior management, lending or control positions across the institutions during the period 2005-2008. AIB is not disclosing the names of the individuals on confidentiality grounds but the Bank has to date issued in excess of 20 letters. The bank is not in a position to release information on former employees without the express consent of the individuals. The bank has, to date, received a number of responses from the individuals concerned. Given this is an ongoing process from a tax, legal and Revenue perspective the Bank is not in a position to confirm the levels of reductions involved to date.

Banking Sector Remuneration

Questions (182)

Pearse Doherty

Question:

182. Deputy Pearse Doherty asked the Minister for Finance the name of the company currently conducting the review into bankers remuneration; the date on which this company received the contract to undertake the review; the details of the tendering process used in awarding this contract; the total cost of the review; and if he will make a statement on the matter. [51025/12]

Written answers

Minister for Finance

The Deputy should note that I have already provided the information he seeks when responding to his parliamentary question of 15 November 2012 (Ref No 50590/12) on the same subject. For his convenience I am including the information below.

“The Deputies will be aware that my Department is presently engaged in a Review of Remuneration Practices and Frameworks at the covered institutions. I have recently engaged, as I informed the Opposition Spokespersons on Finance, the services of Mercer (Ireland) Limited following a limited competitive tender competition to assist my Department in bringing this exercise to a conclusion. The estimated cost of the review, at this stage, is approximately €120,000.

The object of the review is to thoroughly review all remuneration practices at the covered institutions with the object of simplifying remuneration and compensation structures, discouraging excessive risk-taking and to better align pay and reward to long term value creation. Present Government policy on remuneration dictates that no employee, at the covered institutions may receive more than €500,000 (excluding pension contributions) per annum and remains in force.

Numerous engagements by my officials and Mercer have taken place since the awarding of the contract. I am expecting the consultant’s report to be delivered by year end whereupon consultations with the various stakeholders will commence. As I have said previously, I fully recognise that there is a real public interest in the levels of remuneration at the covered institutions and have committed to placing the details underpinning the review into the public domain”.