Written Answers Nos. 297-316
297. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has had discussions with his eurozone colleagues and the wider EU in the context of strategic investment to facilitate job creation throughout the European Union with particular reference to the need to generate growth, employment and achieve a reduction in welfare costs; and if he will make a statement on the matter. [24392/13]
View answerFirst and foremost, I wish to point out that growth and jobs is a key theme of the Irish Presidency of the European Union. A number of initiatives are being implemented at EU level in order to boost growth. I believe the cumulative impact of all of these measures will be positive in terms of supporting economic activity in the EU at this difficult juncture.
For instance, Heads of State or Government in the EU agreed on a compact for growth and jobs at the European Council in June last year. This involves action by both Member States themselves and at EU level in order to boost growth, investment and employment.
Measures to be implemented at the national level include the full implementation of the country-specific recommendations from the European Semester, including the pursuit of differentiated and growth-friendly fiscal consolidation, the restoration of normal lending to the economy and the promotion of competitiveness. At an EU level, policies to promote growth include a renewed emphasis on deepening the Single Market and reducing the regulatory burden. In addition, the recent EUR 10 billion increase in the European Investment Bank capital will allow the Bank to lend an additional EUR 60 billion to support growth and jobs and, together with the European Investment Fund, this will help to catalyse projects worth up to EUR 180 billion in 2013-2015 across the EU.
Finally, considerable progress has been made at a euro area level to put the single currency on a more solid footing. For instance, the establishment of the European Stability Mechanism and the ECB’s announcement of Outright Monetary Transactions have helped restore confidence, while the enhanced system of governance will have a positive impact on economic activity and consequently on the labour market.
298. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which economic fundamentals have stabilised or improved through each EU member state, eurozone and non-eurozone, in each of the past three years to date; the extent to which this country continues to meet its targets in this regard; and if he will make a statement on the matter. [24393/13]
View answerEconomic activity in most EU Member States has been relatively subdued over the past year or so. This reflects inter alia the effect on demand of private sector deleveraging, fiscal consolidation and poor confidence. For the EU as a whole and for the euro area, economic weakness is projected to continue this year, with GDP projected to contract by 0.1 and 0.4 per cent respectively. Within the euro area, GDP is forecast to decline this year in eight of the Member States. The European Commission is anticipating a modest recovering of the EU economy in the second half of the year, with the recovery gaining momentum next year.
In relation to targets, I am assuming the Deputy is referring to the fiscal targets set under the excessive deficit procedure. In this regard, some Member States may miss the deadline for correcting their excessive deficits due to the weaker economic environment. I would point out, however, that there is scope to extend the deadline for correction in circumstances where the headline deficit is affected by weaker-than-expected growth. These matters will be dealt with by EU Finance Ministers in the coming months.
299. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he is satisfied that Ireland will be in a position to exit the bailout programme on time; and if he will make a statement on the matter. [24394/13]
View answerAs the Deputy will be aware, we are now in the final year of our programme. The focus of Government is to achieve a successful exit from the Programme and a sustainable return to market based funding. We continue to meet the conditions set under the programme and our strong implementation record has been recognised by our external partners and has given confidence to the financial markets. We continue to move towards the goal of fully regaining durable and sustainable market access during 2013. The continuation of regular Treasury Bill auctions which recommenced last July, and our bond issues to date are positive steps in this direction. The issue, in January 2013 of an existing 5-year bond in an amount of €2.5 billion at a yield of 3.32% and the issue in March 2013 of a new 10-year bond at yield of 4.15% is a clear demonstration of this progress. Ireland will be the first country to exit an EU/IMF programme of this type. In this context, discussions on Ireland’s exit from the Programme took place during the recent 10th review mission and some further clarity on the possible options that might be available in terms of exit strategy was achieved. All options will be considered in the light of what is appropriate for Ireland. Evidently, this will require further consideration and no decisions have been taken to date by Government.
300. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which economic competitiveness has been improved in the economy; and if he will make a statement on the matter. [24395/13]
View answerAfter three successive years of contraction, the Irish economy returned to growth in 2011 and achieved a second successive year of growth in 2012. GDP is projected to further increase by 1.3 per cent this year.
The recovery of the Irish economy will continue to be led by the exporting sector which is forecast to grow by 2.3 per cent in 2013. This, in no small part, will be aided by the improvements in price and cost competitiveness in recent years which are expected to continue into 2013.
As a small, open economy that relies on trade and foreign direct investment, Ireland’s competitiveness is a particularly important factor in providing economic growth and jobs. The Government continues to take steps to support Ireland’s competitiveness. This includes the Government’s commitment to the 12½ per cent rate of corporation tax and to maintaining and enhancing our pro-business environment. As a result, Ireland continues to attract inward foreign direct investment with the highest net job creation from this investment in a decade recorded last year.
Labour costs in Ireland, relative to those in our main competitors, have improved substantially in recent years and are forecast to continue improving in the coming years. For instance, the European Commission is forecasting that Ireland’s nominal unit labour costs will have improved by 23 per cent relative to those in the euro area over the period 2008-2014.
Consumer prices are continuing to register modest increases in line with the pattern over the last few years. The headline HICP rate of 0.5 per cent recorded in April is the lowest in over two years. Five years of inflation at or below the euro area average is continuing to contribute to competitiveness gains.
Finally, strengthening competitiveness also involves implementing measures in other areas that have an effect on productivity. Accordingly, the Government is continuing to implement a range of structural reforms across all sectors of the economy.
301. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which the borrowing requirements of small and medium enterprises in the manufacturing, service or retail sectors have been met by the borrowing institutions in each of the past three years to date; whether an improvement in likely in this regard; and if he will make a statement on the matter. [24396/13]
View answerAs the Deputy is aware, the Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Each bank was required to sanction lending of at least €3 billion in 2011, €3.5 billion last year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks have achieved their 2011 and 2012 targets. The pillar banks are expected to lend to viable businesses in all sectors of the economy, including the manufacturing, service and retail sectors, and to address the needs of SMEs in financial difficulty. The Credit Review Office is available to assist businesses which have been refused credit. The Credit Review Office is currently overturning 55% of the refusal decisions referred to them and anyone who has been refused credit by the banks should avail of the services of the Office.
Access to finance for SMEs is a key aspect of the Action Plan for Jobs 2013. It is the Government’s vision that all viable businesses operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy.
The SME State Bodies Group was established in 2012 to both develop key policy initiatives to support SME access to credit and other forms of finance, and to ensure their implementation. It has continued in 2013 to engage intensively in proactively addressing issues associated with SME funding and financing in conjunction with the relevant stakeholders through the SME Funding Consultation Committee. My officials also meet frequently with additional stakeholders who wish to contribute to policy development in relation to access to finance.
The Government has taken a number of actions, particularly where SMEs have been refused credit, to improve the situation in relation to credit availability to SMEs.
The Temporary Partial Credit Guarantee scheme addresses the situation where the SME is outside the risk appetite of the banks. This can arise because the SME’s lack of collateral or the banks’ lack of understanding of the business model, the market, the sector or the technology. The three main SME lenders are all participating in the Guarantee scheme.
The Microenterprise Loan Fund Scheme will provide loans of up to €25k to start-up, newly established, or growing microenterprises employing less than 10 people, who have commercially viable proposals that do not meet the conventional risk criteria applied by banks.
303. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which there is recognition at ECB level of the need for an all-Europe response to debt repayment throughout member States with particular reference to the need for recognition of the ability of each member State to meet its repayments without causing further damage to the respective economy of each country and the need to achieve separation of sovereign and banking debt; and if he will make a statement on the matter. [24398/13]
View answerAs the Deputy will be aware, the ECB is an independent institution and I have no role in its deliberations. As regards the capacity of individual Member States to repay their sovereign debt, there have been a number of positive developments at EU level in recent years. For instance, retro-fitting the euro area with the necessary tools to make it commensurate with a monetary union has been a vital step forward. These governance reforms – including the reforms to the Stability and Growth Pact – will have a key role to play in containing fiscal imbalances in the future, and help to put the debt-to-GDP ratio on a downward trajectory, thereby improving the repayment capacity.
In addition, the establishment of an effective backstop – initially in the form of the EFSF / EFSM and more recently in the ESM – provides, in appropriate circumstances, support to Member States in making the necessary economic and fiscal adjustments.
Another development relates to the creation of a banking union, which is a priority and which is also an important part of the necessary reforms at EU level.
In relation to whether or not initiatives such as Eurobonds are part of the solution, this is part of a wider debate at EU level on the future of EMU which is on-going.
Finally, I would recall that the Heads of State or Government stated in June last year that it is imperative to break the link between banking debt and sovereign debt, and work is on-going at EU level to achieve this.
305. Deputy Bernard J. Durkan asked the Minister for Finance the extent, if any, to which he and his Department have recognised any possible inflationary tendencies in the Irish economy; if any corrective steps are required to address any issues arising; and if he will make a statement on the matter. [24401/13]
View answerHICP inflation - the comparative measurement of inflation across Europe - increased in Ireland by just 0.5 per cent year-on-year in April. This compares with an inflation rate of 1.2 per cent in the euro area as a whole. In fact, Irish inflation has now been below, or on par, with euro area inflation for every month since March 2008. This has led to significant cost competitiveness gains over this period, while also serving to protect real incomes. Looking to the future, my Department expects inflation to remain at modest rates for the next few years. Indeed, the European Commission expects Irish inflation rates to be below European rates in both 2013 and 2014.
306. Deputy Pearse Doherty asked the Minister for Finance if he will set out in tabular form the names of all State-owned or substantially State-funded organisations under his Department whose latest accounts laid before the Houses of the Oireachtas are more than one year old - that is, relating to a period ending before May 2012; and those of all such organisations whose latest accounts are more than two years old - that is, relating to a period ending before May 2011. [25022/13]
View answerThe details requested by the Deputy are contained in the following table:
|
Name of Body |
Details in respect of latest accounts laid before the Houses of the Oireachtas |
|
National Treasury Management Agency |
The most recent accounts laid before the Oireachtas were the Annual Report and Accounts for the year ended 31 December 2011. - It is expected that the Annual Report and Accounts for the year ended 31 December 2012 will be published in July 2013 |
|
National Asset Management Agency |
The most recent annual accounts laid before the Oireachtas were the Annual Report and Accounts for the year ended 31 December 2011. - Unaudited Quarterly Accounts and Section 55 NAMA Quarterly Reports have also been laid before the Oireachtas for each financial quarter of 2012. - The Annual Report and Accounts for the year ended 31 December 2012 have been provided to the Minister and are expected to be published in the coming weeks. |
307. Deputy Michael McCarthy asked the Minister for Education and Skills if he will examine the case involving an alleged administrative error regarding a teacher's payroll (details supplied) in County Cork; and if he will make a statement on the matter. [23638/13]
View answerThe salary of the person referred to by the Deputy has been adjusted and arrears owed to him will be paid on the 6th June 2013.
308. Deputy Caoimhghín Ó Caoláin asked the Minister for Education and Skills the reason the full student maintenance and fees grant was not awarded to a person (details supplied) in County Monaghan in view of the fact that they were not able to get this information from Student Universal Support Ireland; and if he will make a statement on the matter. [23641/13]
View answerOfficials in my Department have confirmed with Student Universal Support Ireland that the student referred to by the Deputy has had her application reviewed and a revised award letter issued on 2nd May 2013.
309. Deputy Jonathan O'Brien asked the Minister for Education and Skills what will happen to BTEC HND, higher level 6, NQF, courses and the two honours degree programmes, level 8 NQF, which account for over 60% of all programmes delivered in Ballyfermot College, Dublin, should specialised teaching staff be lost to the college as a result of the proposed change to the pupil teacher ratio. [23646/13]
View answer310. Deputy Jonathan O'Brien asked the Minister for Education and Skills his views on whether Ballyfermot College, Dublin, which has a world renowned reputation for developing highly specialised and innovative courses at the right level and duration for specified industries, can survive if continually restrained from developing and delivering the types of courses that it has derived so much success from. [23647/13]
View answer312. Deputy Jonathan O'Brien asked the Minister for Education and Skills if he will respond to fears that highly successful specialised courses that have been developed and run by Ballyfermot College, Dublin, will be jeopardised as a result of the college losing 10-12% of its teaching staff because of the proposed increase to the pupil teacher ratio. [23649/13]
View answerI propose to take Questions Nos. 309, 310 and 312 together.
I wish to advise the Deputy that Ballyfermot College of Further Education (BCFE) is an approved Post Leaving Certificate (PLC) centre which is managed and funded by City of Dublin Vocational Educational Committee (CDVEC) from funding provided by my Department. Post Leaving Certificate Centres provide further education courses up to Level 6 on the National Framework of Qualifications (NFQ). However, my Department has facilitated the provision by BCFE of two courses accredited by third level institutions at Level 8 on the NFQ for a number of years and continues to do so as an exceptional measure.
There is a need to ensure that further education resources are focused on the delivery of further education while at the same time maximising the progression opportunities for learners in further education to higher education.
In relation to the reduction in the PLC pupil teacher ratio VECs were invited to forward impact statements to my Department on the effect of this regression on their PLC provision. A review of all impact statements received including one from CDVEC was conducted having regard to the need to operate within overall budgetary constraints and the Employment Control Framework. Following this review some alleviation of the reduction in teaching posts is being allowed as a transitional measure. As a result of this CDVEC has been allowed retain ten whole time equivalent teaching posts, that it was due to lose under the new pupil teacher ratio allocation, for the 2013/2014 academic year. Further distribution of these posts to schools and colleges under its remit is a matter for CDVEC.
311. Deputy Jonathan O'Brien asked the Minister for Education and Skills the reason higher education students are ineligible for receiving maintenance grants and not afforded the same rights and privileges as students taking higher education courses in other colleges in the 26 counties. [23648/13]
View answerUnder my Department's student grant scheme, eligible candidates may receive funding provided they are attending an approved course at an approved institution as defined in the scheme. Students who are attending undergraduate courses in an EU Member State, can apply for a maintenance grant in respect of an approved course which is being pursued in an approved institution. The student grant scheme does not extend to postgraduate courses pursued outside of Ireland.
The Student Support Act 2011 provides that the payment of tuition fees be limited to approved courses of higher education at an approved institution in the State, other than for exceptional provision in respect of approved postgraduate courses in Northern Ireland.
Tax relief at the standard rate of tax may be claimed in respect of tuition fees paid for approved courses at approved colleges of higher education including approved undergraduate and postgraduate courses in EU Member States and in non-EU countries. Further information on this tax relief is available from the Revenue Commissioners on www.revenue.ie.
313. Deputy Andrew Doyle asked the Minister for Education and Skills if his Department has plans to build a new school in a new housing area that has been specifically zoned for a school (details supplied) in County Wicklow; and if he will make a statement on the matter. [23674/13]
View answerAs the Deputy will be aware, in June of 2011, I announced that 20 new primary schools and 20 new post primary schools are to be established up to 2017 across a number of locations to cater for increasing demographics. This announcement did not include a proposal to establish any new schools in the area referred to by the Deputy. My Department will continue to monitor enrolments in all areas, including the area in question, to ensure that there is sufficient school accommodation to meet any projected future demand.
314. Deputy Clare Daly asked the Minister for Education and Skills if he will consider the patronage of Educate Together for the promised second level school in Balbriggan in 2016. [23695/13]
View answerApplications for patronage of the new post primary schools to be established in 2015 and 2016 are currently being sought by my Department from prospective patrons. Details of the arrangements for patronage of new schools and the criteria for deciding on patronage for them are available on my Department's website, www.education.ie. The arrangements in question will apply to all prospective patron bodies including Educate Together.
315. Deputy Sean Fleming asked the Minister for Education and Skills when a reader assistant will be approved for a student (details supplied) in County Laois sitting their leaving certificate examination; and if he will make a statement on the matter. [23713/13]
View answerState Examinations Commission has statutory responsibility for operational matters relating to the certificate examinations.
The State Examinations Commission operates a scheme of Reasonable Accommodations in the Certificate examinations. Applications for such accommodations are submitted by schools on behalf of their students. Full details of the scheme are available for downloading from their website: www.examinations.ie/candidates/reasonableaccommodations. In view of this I have forwarded your query to the State Examinations Commission for direct reply to you.
316. Deputy Charlie McConalogue asked the Minister for Education and Skills if he will provide an update in the Higher Education Authority's advice in relation to a college (details supplied) in County Sligo; and if he will make a statement on the matter. [23720/13]
View answerAs the Deputy may be aware, the HEA was requested to prepare a plan on how to implement the recommendations made by an international panel of experts on possible new structures to improve initial teacher education in Ireland, and to consult with the relevant colleges in doing so. This process is ongoing and the HEA provide me with progress reports on the matter from time to time.
As reconfiguring the structures is a complex task, there are a number of issues to resolve and negotiate. I understand that the college concerned is engaged with the HEA on the matter and I do not plan to make further comment in relation to individual colleges at this point.
