Skip to main content
Normal View

Thursday, 18 Jul 2013

Written Answers Nos. 301-314

Appointments to State Boards

Questions (301)

Catherine Murphy

Question:

301. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation the present gender balance of the total members of State boards under the aegis of his Department; if the ratio has changed significantly over the course of the present Government's term; and if he will make a statement on the matter. [36792/13]

View answer

Written answers

The details of the gender balance of the State Boards under the aegis of my Department in early 2011 and currently are set out in the following table. There is a small increase in the representation of women on State Boards (5.58%) since 2011.

Body

No of Members (incl Chairperson)

Male 2011

Female 2011

% female

Male  2013

Female 2013

% Female

difference

Enterprise Ireland

12

8

4

33.33%

7

4

36.36%

3.03%

Forfás

13

12

1

7.69%

6

0

0.00%

-7.69%

IDA Ireland

12

6

3

33.33%

9

2

18.18%

-15.15%

Labour Relations Commission

7

6

1

14.29%

6

1

14.29%

0.00%

National Consumer Agency

12

7

5

41.67%

4

6

60.00%

18.33%

Personal Injuries Assessment Board

11

6

4

40.00%

6

5

45.45%

5.45%

Science Foundation Ireland

12

8

3

27.27%

7

4

36.36%

9.09%

Shannon Development

12

9

3

27.27%

9

2

18.18%

-9.09%

Health and Safety Authority

12

9

3

25.00%

8

3

27.27%

2.27%

Irish Auditing and Accounting Supervisory Authority

15

10

3

23.08%

8

7

46.67%

23.59%

National Standards Authority of Ireland

13

9

4

30.77%

7

4

36.36%

5.59%

Intertrade Ireland

7

5

2

28.57%

4

2

33.33%

4.76%

Totals

138

95

36

27.48%

81

40

33.06%

5.58%

*The membership of the Forfás Board was reduced to an executive style board, with effect from 5th October 2012, to facilitate the integration of Forfás with the Department. The remaining Board members will continue in situ, to oversee the integration process.

Following the Government decision to merge Shannon Development with Shannon Airport it was agreed that there would be commonality in filling the vacancies of both boards until such time as the new entity is in place. It was intended that such appointments would maximise synergies between the two entities until such time as the merger is confirmed.

Jobseeker's Allowance Appeals

Questions (302)

Seán Fleming

Question:

302. Deputy Sean Fleming asked the Minister for Social Protection when the means attributed to a person (details supplied) in County Laois in respect of their jobseeker's allowance will be re-examined and the decision made on the ongoing allowance payable to the person; and if she will make a statement on the matter. [35942/13]

View answer

Written answers

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 22nd May 2013. It is a statutory requirement of the appeals process that the relevant papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought from the Department of Social Protection. These papers were received in the Social Welfare Appeals Office on 2nd July 2013 and the case will be referred to an Appeals Officer who will make a summary decision on the appeal based on documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Social Insurance Yield

Questions (303, 304, 305, 306)

Kevin Humphreys

Question:

303. Deputy Kevin Humphreys asked the Minister for Social Protection the yield from a 1% and 2% increase, respectively, in the employer's PRSI rate that applies to employee salaries over €65,000 and €100,000, respectively; and if she will make a statement on the matter. [36278/13]

View answer

Patrick Nulty

Question:

304. Deputy Patrick Nulty asked the Minister for Social Protection the amount of money that would be raised in a full year by introducing a third band of employer's PRSI that would be charged on the portion of salaries above €100,000 at 13%; the amount that would be raised at 15%; the amount that would be raised at 18%; and if she will make a statement on the matter. [36748/13]

View answer

Patrick Nulty

Question:

305. Deputy Patrick Nulty asked the Minister for Social Protection the amount of money that would be raised in a full year by introducing a third band of employer’s PRSI that would be charged on the portion of salaries above €80,000 at 13%; the amount that would be raised at 15%; the amount that would be raised at 18%; and if she will make a statement on the matter. [36749/13]

View answer

Patrick Nulty

Question:

306. Deputy Patrick Nulty asked the Minister for Social Protection the amount of money that would be raised in a full year by introducing a third band of employer’s PRSI that would be charged on the portion of salaries above €65,000 at 13%; the amount that would be raised at 15%; the amount that would be raised at 18%; and if she will make a statement on the matter. [36750/13]

View answer

Written answers

I propose to take Questions Nos. 303 to 306, inclusive, together.

The following estimates are based on the latest data available to the Department. Full year costs/yields are shown. First year costs/yields are a function of the chosen implementation date of PRSI changes in 2014. The following costings are based on Class A Employer rates of the indicated rates and do not include the amount raised for the National Training Fund Levy, which is 0.7% on the Employer's PRSI higher rate and 0.35% on the Employer's PRSI lower rate.

The following table refers to the question from Deputy Humphreys:

Salary Greater than

Percentage increase

No. of employments affected

-

10.75% to 11.75%

10.75% to 12.75%

-

€m

€m

-

65,000

130

260

133,700

100,000

65

131

45,090

The following table refers to the questions from Deputy Nulty:

Salary greater than

Percentage increase

No. of employments affected

-

13%

15%

18%

-

€m

€m

€m

-

65,000

113

214

365

133,700

80,000

82

155

264

77,800

100,000

58

110

188

45,090

The yield in the reply to Deputy Humphreys' question is higher than that in the replies to Deputy Nulty's questions. This is because Deputy Nulty requested the yield from the possible introduction of a third band of PRSI which would apply to the portion of income over the various levels of income while Deputy Humphreys requested the yield from the possible introduction of a higher rate of PRSI on all liable income.

Social Insurance Yield

Questions (307, 361)

Patrick Nulty

Question:

307. Deputy Patrick Nulty asked the Minister for Social Protection the amount of money that would be raised in a full year by applying PRSI to rental income; and if she will make a statement on the matter. [36751/13]

View answer

Joanna Tuffy

Question:

361. Deputy Joanna Tuffy asked the Minister for Social Protection if she will provide an update on PRSI chargeable on rent; and if she will make a statement on the matter. [36756/13]

View answer

Written answers

I propose to take Questions Nos. 307 and 361 together.

All workers pay PRSI on their earnings from employment. If an employee has earned income from self-employment, PRSI as a self-employed contributor is also payable on the profits from that self-employed activity as well as from any other unearned income the individual may have. Similarly a self-employed contributor (who is not an employee) pays PRSI on both earned and unearned income. However if an employee has unearned income only, there is no PRSI charge on the unearned income. Unearned income includes rental and investment income as well as income from dividends, deposits and savings and from overseas investments.

In Budget 2013 the Minister for Finance indicated that the income base on which PRSI is charged will be broadened, consequently I introduced the following measures:

- With effect from 1 January 2013 modified rate contributors with additional earned self-employed income (from a profession or trade) and any other unearned income (such as rental income) became liable to PRSI at the rate of 4% on all such income:

- In 2014, the exemption from PRSI applying to all employees who have no additional self-employed earned income but who do have unearned income only (such as rental income), will be abolished, such income will become liable to PRSI at the rate of 4%.

Social Insurance applies to persons over the age of 16 years and under pensionable age, which is currently age 66 years. Those aged 66 years and over are not liable to pay PRSI on any of their income including their unearned income. Accordingly those over 66 years will not be impacted by this change.

In general the rules which apply to income for taxation purposes also apply to income for the purposes of charging PRSI.

It is not possible to identify the amount of income raised by the application of PRSI to rental income in any year.

Pension Provisions

Questions (308)

Seán Fleming

Question:

308. Deputy Sean Fleming asked the Minister for Social Protection whether a company (details supplied) has indicated its intention to cease contributing to its defined pension scheme and consider closing down this scheme; if she will outline the consequences for deferred pensioners in this situation; and if she will make a statement on the matter. [35945/13]

View answer

Written answers

I cannot comment on any particular scheme. The Pensions Board supervises the regulation of individual schemes in accordance with the Pensions Act.

Pension Provisions

Questions (309)

Seán Fleming

Question:

309. Deputy Sean Fleming asked the Minister for Social Protection her views on defined benefit pension schemes that are having difficulties meeting the new requirements and where companies intend to cease contributing to the pension fund and to close the scheme and the position of deferred pensioners in these schemes; and if she will make a statement on the matter. [35946/13]

View answer

Written answers

I am very aware of the challenges facing the trustees and the sponsoring employers of defined benefit pension schemes. The majority of defined benefit pension schemes are in deficit and face serious challenges in restoring their funding levels to enable the scheme deliver on the pension promise. It is acknowledged that the fundamental problem, facing pension schemes is that pensions are significantly more expensive, due to increasing life expectancy and lower than expected investment returns which are reflect in increased annuity rates.

The Funding Standard provides a benchmark against which the "health" of a scheme can be tested. When a scheme fails the Funding Standard that means that unless some action is taken, the scheme will not be able to pay all the benefits promised. The existence of the Funding Standard itself is not the central issue in relation to whether a scheme is properly funded. Rather the responsibility rests with the employer and the trustees for ensuring that the scheme is properly funded and managed. However, the Funding Standard does provide the regulatory mechanism for ensuring that a scheme can live up to the "promised" level of pension benefits.

In addition to the range of both legislative and administrative measures introduced over the last few years to assist the trustees and sponsoring employers to restore pension provision to a sustainable position, I introduced measures last year to protect scheme members against future volatility in the financial markets. Defined benefits schemes will be required to maintain a risk reserve with effect from January 2016 and to meet this risk reserve requirement by the end of 2023.

It is accepted that the requirement for a risk reserve will present an added challenge for pension schemes, however, guidance issued by the Regulator identifies options which the scheme can consider in meeting this requirement.

The size of the funding standard risk reserve depends on the nature of the assets held by the scheme in question. The greater the amount of lower risk assets held, the lower the reserve requirement. The level of the risk reserve was initially set at 15% of holdings other than bonds or cash. The occupational pension schemes (funding standard reserve) regulations 2013 reduced the risk reserve requirement from 15% to 10% and extended the range of assets which have the effect of reducing the Funding Standard reserve requirement. These additional measures were put in place to provide further assistance to scheme in restoring the scheme funding position.

This measure was put in to protect scheme members from exposure to financial volatility and to assist in securing the future sustainability of schemes. You will be aware that investment losses in Ireland were the largest because of the large share of equities in pension fund portfolios, around two-thirds of assets before the crisis hit, compared with an average of 36% in the 20 OECD countries where data are available.

There has been a decline in the number of defined benefit schemes over the last decade. This decline is replicated in many other OECD countries and is referred to in the recent OECD Review of the Irish Pensions System. The persistent funding difficulties experienced by defined benefit schemes have been well recognised and employers, unions and trustees have been making strenuous efforts to protect the viability of their schemes. While trustees and employers will explore a range of options to secure the sustainability of pension provision, some schemes will wind up. The level of scheme funding at the date of the wind-up will determine the extent to which the scheme can meet all of its liabilities. It is recognised that in situations where a scheme is severely under-funded, the expected level of benefit which an active and deferred members of a scheme will receive will be reduced. Section 48 of the Pensions Act determines the order in which the assets of a scheme are distributed on the wind up of a scheme. This is an issue which has been examined in some depth and is under consideration at present, along with other defined benefit issues. I am keeping the situation under review and will report back to Government in the coming months on these issues. Legislative proposals and additional reforms will be considered at that stage.

Domiciliary Care Allowance Appeals

Questions (310)

Seán Fleming

Question:

310. Deputy Sean Fleming asked the Minister for Social Protection if a domiciliary care allowance will be approved for a person (details supplied) in County Kildare; and if she will make a statement on the matter. [35947/13]

View answer

Written answers

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 26th June 2013, who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Social Welfare Benefits Eligibility

Questions (311)

Timmy Dooley

Question:

311. Deputy Timmy Dooley asked the Minister for Social Protection if she will confirm the current status of the proposed legislation for the special position of retained fire fighters with regard to social welfare; and if she will make a statement on the matter. [36001/13]

View answer

Written answers

Over 2,000 persons are employed as retained (part-time) fire-fighters, providing services which are vitally important to their communities. Typically, these workers provide services in rural and less densely populated areas but larger urban centres may also have a cohort of part-time workers.

Retained fire-fighters who are otherwise unemployed are entitled to a jobseeker's payment in respect of days that they are engaged in fire-fighting or training. They are, however, required to satisfy the statutory conditions for the receipt of a jobseeker's payment of being available for and genuinely seeking work. Any person who fails to satisfy these conditions is not entitled to a jobseeker's payment.

Taking account of the unusual circumstances of retained fire personnel the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 and accompanying regulations, carried amendments to both jobseeker's benefit and jobseeker's allowance that put the treatment of retained fire fighters on a legislative basis.

Critically, the revised provisions provide that employment as a retained fire fighter shall satisfy the availability conditionality, irrespective of the requirement that a retained fire fighter who is on call must be within a 1.5 mile radius of their respective fire station. However, retained fire fighters are still required to be available for additional or alternative full time employment.

The revised provisions will exempt retained fire-fighters from having to satisfy the jobseeker’s benefit 'substantial loss' of employment rule, which means that retained fire fighters can potentially re-qualify for jobseeker's benefit without suffering any additional loss of employment. In addition, the revised legislative provisions also state that any days of employment as a retained fire fighter will not reduce their jobseeker's claim.

The changes contained in the Social Welfare and Pensions (Miscellaneous Provisions) Act 2013 and the accompanying regulatory amendments have effect from 10 July, 2013. These changes will act to allow retained fire-fighters a reasonable and fair level of access to the jobseeker schemes in future.

Exceptional Needs Payment Applications

Questions (312)

Bernard Durkan

Question:

312. Deputy Bernard J. Durkan asked the Minister for Social Protection if she will accommodate a payment to a person (details supplied); and if she will make a statement on the matter. [36081/13]

View answer

Written answers

The person concerned has not yet made an application for an exceptional needs payment. The relevant forms were posted to her on 16th July 2013. She should complete the forms and return them to her local community welfare office for consideration.

Information and Communications Technology Issues

Questions (313)

Catherine Murphy

Question:

313. Deputy Catherine Murphy asked the Minister for Social Protection if she is preparing her Department to adapt to and make maximum use of next generation technologies in information and communications to better enhance the interaction of her Department with the citizen and the internal functioning of her Department; if she intends to conduct a risk analysis in respect of same; and if she will make a statement on the matter. [36110/13]

View answer

Written answers

The Department of Social Protection has relied heavily on the effective and extensive use of Information and Communications Technology (ICT) over the years and continues to do so. The Department is currently engaged in major transformation programmes to meet Government objectives, for example in relation to activation and supporting the provision of integrated income support and activation services through Intreo to clients of working age. The Department has embarked on a major programme of business and system change to support these objectives and is focussing its development efforts in this regard. The Department requires the effective use of ICT in order to deal with this increasingly broad and complex workload while reliably providing for some 87 million payments to over 2 million recipients per annum and facilitating their engagement with society as a whole.

While not a technology research organisation per se, the Department must continually keep abreast of relevant technological advances and evaluate their potential contribution to realising gains in effectiveness and efficiency. Professional expertise is maintained by staff training, review of technology literature, networking and monitoring industry trends. When a technology or technique appears to have sufficient contribution to warrant further investigation, the Department explores it in more depth. This usually takes the form of an exploratory project to evaluate the technology concerned and/or the processes necessary to take advantage of it while minimising the investment required. One of the objectives of an exploratory project is to identify and mitigate any risks involved, should it be decided to proceed to more widespread deployment.

Once the Department is satisfied that there is sufficient return on the investment required to deploy new technologies, it will generally commence deployment on a pilot basis to ensure that benefits are realisable and, if successful, will follow this with more widespread deployment.

I am satisfied that my Department adapts to, and makes maximum use of, modern information and communications technologies and that any new technologies are explored with due care to maximise investments and to position the Department to deliver on its major transformation programmes.

Departmental Staff Redeployment

Questions (314)

Catherine Murphy

Question:

314. Deputy Catherine Murphy asked the Minister for Social Protection if she will confirm that no staff from her Department will be moving to local authorities, either on a temporary or permanent basis, to enable the coming on stream of the new housing assistance payment regime; and if she will make a statement on the matter. [36128/13]

View answer

Written answers

The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The overall aim is to provide short-term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are approximately 84,000 rent supplement recipients, of which over 53,000 are in payment for over 18 months. The Government has provided over €403 million for the scheme in 2013.

In 2012, the Government approved in principle to transfer responsibility for the provision of rental assistance to persons with a long-term housing need from this Department to housing authorities using a new Housing Assistance Payment (HAP). Officials in the Department are working closely with colleagues in the Department of Environment, Community and Local Government to assist with the necessary work required to progress HAP.

There are no plans to transfer staff from this Department to housing authorities in order to administer HAP.

Top
Share