Written Answers Nos. 75-81
75. Deputy Thomas Pringle asked the Minister for Finance the impact on the fiscal deficit if Government expenditure in 2014 was maintained at 2013 levels, with only increases or reductions based on carryover effects from budget 2013, and with a growth in GDP of 0.5%, 1%, 1.5%, and 2%; and if he will make a statement on the matter. [39966/13]
View answerFor the purposes of answering the question several assumptions have to be made. These are that: Planned revenue consolidation measures outlined in April’s Stability Programme Update remain unchanged. This is because the composition of GDP growth is crucial in forecasting tax and non-tax revenues and use of headline GDP growth would be misleading. General government expenditure is maintained at the 2013 level. Questions regarding voted expenditure carryover effects from Budget 2013 should be addressed to my colleague the Minister for Public Expenditure and Reform. The growth scenarios suggested by the Deputy are for real GDP growth. Nominal GDP shown below is based on the application of the SPU GDP deflator applied to the growth rates suggested by the Deputy.
Based on these assumptions, the scenarios are set out in the table below.
|
% real GDP growth in 2014 |
General government deficit 2014 |
|
0.5% |
-5.8% |
|
1.0% |
-5.8% |
|
1.5% |
-5.7% |
|
2.0% |
-5.7% |
The Deputy should note that failure to implement the expenditure consolidation would result in Ireland missing the agreed targets even in a scenario where revenue consolidation takes place.
76. Deputy Bernard J. Durkan asked the Minister for Finance if any attention has been given to the number of small and medium enterprises known to have been affected by a damaged credit rating arising from issues associated with the economic downturn; if any action will be taken to minimise the impact on their business in view of the fact that the Irish Credit Bureau restriction will apply for five years; and if he will make a statement on the matter. [40068/13]
View answerThe Government recognises that SMEs are the lifeblood of the economy and will play a vital role in the recovery of employment growth in our country. It also recognises that businesses with legacy debts may be viable. One of the key priorities of the Programme for Government is to ensure that an adequate pool of credit is available to fund SMEs in the real economy during the restructuring and downsizing programme. The Irish Credit Bureau is a private entity and I have no direct function in the day-to-day operational decisions. In relation to the credit ratings provided to SME’s my department has recognised the need to reorganise the government reporting system and we have established an inter-agency working group at the end of 2010 to develop a strategy to put in place an effective credit reporting system in Ireland.
However, the Deputy will be aware that the Credit Reporting Bill, 2012 is currently passing through the Houses of the Oireachtas which provides for the creation of an effective statutory based credit reporting system. The Bill includes the following provisions: The database will be owned by the Central Bank and the Bank will be responsible for the operation of the Central Credit Register; There will be mandatory reporting of a comprehensive range of credit information by credit providers; The Bill provides for controls with regard to access to information on the Register. By including provisions relating to access to data and security measures as well as provisions to help to deal with identity theft, this legislation should inspire confidence in businesses and in the consumer. The legislation proposes to extend the role of the Data Protection Commissioner to deal with complaints from micro enterprises and SMEs (with a turnover of less than €3m) in respect of their data held on the Credit Register. This initiative may provide some comfort to enterprises where they have a concern in relation to the potential storing of inaccurate data and where they do not have the resources to take legal action through the Courts to seek to have the data corrected. Inaccurate data on the Central Credit Register could result in the refusal of credit to a small company. In line with International practice, it provides for a retention period of 5 years in relation to credit information with respect to debts from the day on which it is entered on the Register. The Bill provides for the retention of information for a period of 6 months in relation to credit applications from the day it is entered on the Register. Anonymised information may be retained indefinitely.
In addition, the Government is fully engaged in supporting the SME sector and 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 in 2012 and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved the targets for 2011 and 2012. I have met the Boards of each of the banks in which the State has a shareholding three times since the start of this year. At these meetings, I have emphasised the importance of access to credit for SMEs and the need for an adequate flow of finance to be available to viable small businesses in Ireland.
In June 2013 the Central Bank set quarterly institution-specific performance targets for covered banks to move distressed SME borrowers onto longer-term solutions. The targets set reflect the banks’ capacity, processes and systems.
I should stress that the Credit Review process remains available to any SMEs whose credit has been reduced or withdrawn by the pillar banks as well as when credit is refused by them. I would strongly advise any SME whose credit is reduced or withdrawn to avail of the services of the Credit Review Office.
77. Deputy Catherine Murphy asked the Minister for Finance the financial penalties that will be applied to persons who do not register to pay the local property tax on time; and if he will make a statement on the matter. [40071/13]
View answerSection 146 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a monetary penalty where a liable person fails to deliver a Return to the Revenue Commissioners. The penalty chargeable is equivalent to the Local Property Tax (LPT) that is payable, subject to a maximum of €3,000. Section 149 of the 2012 Act (as amended) provides for the charging of interest on late payment of LPT at a daily rate of 0.0219%, an annual rate of just under 8%.
As the Deputy may be aware, the Revenue Commissioners have been contacting property owners who did not file an LPT Return to give them a final opportunity to comply. In the absence of a response, Revenue, in accordance with legislation, has begun to deduct the Revenue Estimated amount of LPT at source from salaries and occupational pensions on a mandatory basis and, in these circumstances, interest does not arise.
Self-assessed taxpayers have likewise been reminded that, if they do not comply, they will not receive a tax clearance certificate and face a surcharge on their forthcoming income tax return.
Revenue’s priority this year has been to establish the tax and secure the yield for the Exchequer. In due course, notwithstanding the fact that the estimated tax has been secured, Revenue will initiate a compliance campaign for outstanding LPT Returns and will challenge a proportion of returns on a risk basis, at which stage penalties and interest under Sections 146 and 149 of the 2012 Act (as amended) may arise.
I am satisfied that the approach adopted by the Revenue Commissioners to LPT non-compliance is appropriate to ensure the highest possible level of LPT compliance while optimising the use of the Commissioners’ resources.
78. Deputy Tom Fleming asked the Minister for Education and Skills if he will take the very special circumstances of a school (details supplied) in South Kerry into consideration and appoint a third teacher to this school as a matter of urgency; if he will also take into consideration, the fact enrolment numbers have increased from 49 pupils in 2011 to 51 in 2012 to 52 in 2013 and to 57 in 2014; and if he will make a statement on the matter. [39864/13]
View answerAs part of the Budget 2012 decisions, the number of pupils required to gain and retain a classroom teaching post in small primary schools is being gradually increased between September 2012 and September 2014. The Government recognises that small schools are an important part of the social fabric of rural communities and my Department has expanded the existing appeals process so that it is accessible to the small schools that are affected by the budget measure. The detailed arrangements in relation to the appeals process are set in the Department's Staffing Circular 0013/2013. The Appeals Board operates independently of the Department and its decision is final. The context for any discussion about class sizes is that my Department, like all other Government Departments, is operating within a budgetary programme that is designed to return the Government finances to a sustainable basis. My focus is on ensuring we have school places and teachers for all the additional pupils entering our schools each year. There is no scope to give any consideration to the provision of additional teachers in order to reduce class sizes. Classroom teachers are currently allocated under the published Staffing Schedule on the basis of a general average of 1 teacher for every 28 pupils with lower thresholds for DEIS Band 1 schools. The configuration of classes and the deployment of classroom teachers are done at local school level. My Department's guidance to schools is that variations in class sizes should be kept to the minimum.
79. Deputy Brian Walsh asked the Minister for Education and Skills if he will clarify eligibility for access to PLC, VTOS and youthreach programmes for non EU nationals who entered the country after 1999; and if he will make a statement on the matter. [39910/13]
View answerAccess to the Post Leaving Certificate (PLC), Vocational Training Opportunities Scheme (VTOS) and Youthreach programmes for non EU nationals in the following categories is available under the same conditions as apply to Irish nationals: persons who have refugee status in Ireland – be that convention or programme refugee status; persons in the State as the spouse of an EU national, where the EU national has moved from one country to another within the EU to work; persons (including their dependent spouse and children) who have been granted leave to remain in the State on humanitarian grounds; persons who have permission to remain in the State as the parents of a child born in Ireland.Applicants must also meet the specific qualifying criteria for each programme. In respect of the PLC programme, all other categories of applicants must pay the full economic fee currently €3,653 per annum. In respect of the VTOS programme, applicants must be aged 21 or over and be in receipt of a qualifying Department of Social Protection payment or signing for credits for at least six months. As a general rule, pupils are admitted to primary and second level schools in Ireland irrespective of their nationality or status, and non-EU nationals, refugees and asylum seekers under 18 can avail of free education at their local schools. Where refugees or asylum seekers aged 15-18 have not completed upper second level education and their circumstances are such that school is not a viable option, they may be admitted to Youthreach as an exceptional measure until they reach 18 years of age.
80. Deputy Martin Heydon asked the Minister for Education and Skills when a person (details supplied) in County Kildare may expect to hear if they have been accepted for a FÁS course; and if he will make a statement on the matter. [39920/13]
View answerThis a day to day operational matter for FÁS. I have passed the Deputy's query to FÁS and have asked them to contact the Deputy directly.
81. Deputy Tom Fleming asked the Minister for Education and Skills if he will honour the commitment to adequately support children with Down's syndrome and other disabilities, in the mainstream education system, as a large number of children in primary schools were being denied resource hours; and if he will make a statement on the matter. [39937/13]
View answerI wish to advise the Deputy that pupils with Down Syndrome attending mainstream schools may receive additional teaching support in primary schools, either under the terms of the General Allocation Model (GAM) of teaching supports, if the pupil's educational psychological assessment places the pupil in the mild general learning disability/high incidence disability category, or through an allocation of individual additional resource teaching hours which are allocated by the National Council for Special Education (NCSE), if the child is assessed as being within the low incidence category of special need, as defined by my Department's Circular Sp Ed 02/05. Pupils with Down Syndrome may therefore be allocated resources under the category of mild general learning disability, or under the categories of moderate general learning difficulty or Assessed Syndrome, in conjunction with another Low Incidence disability. Regardless of the manner in which the resource hours are allocated to schools, resource teaching/learning support is available for pupils with Down syndrome. The National Council for Special Education (NCSE) has a formal role under the Education for Persons with Special Educational Needs (EPSEN) Act, 2004 in advising me in relation to any matter relating to the education of children and others with disabilities. My Department requested that the NCSE consider the issue of whether Down Syndrome should be reclassified as a low incidence disability in all instances, regardless of assessed cognitive ability, in the context of its preparation of comprehensive advice on how the educational system supports children with special educational needs in schools. The NCSE report on Supporting Children with Special Educational Needs in Schools has now been published and is available on the NCSE website www.ncse.ie. The report recommends that under the new resource allocation model proposed by the NCSE in its report, children should be allocated additional resources in line with their level of need, rather than by disability category. The NCSE has recommended that in the short-term, pupils with Down Syndrome who are in the Mild General Learning Disability (Mild GLD) category should continue to be supported by schools' Learning Support allocation in the same way as other pupils with a Mild GLD. The NCSE policy advice did not recommend that an exception should be made for children with Down Syndrome who are in the Mild GLD range, over other children who are in the mild range and who also may have other co-morbid conditions. However, the NCSE report states that it is confident that the introduction of a new allocation model will overcome the difficulty posed by all children with mild general learning disabilities, including children with Down Syndrome, who have additional difficulties and who can be supported according to their level of need and in line with their learning plan process. In the meantime, schools are reminded that they can differentiate the level of learning support granted to ensure that available resources are used to support children in line with their needs. I have requested the NCSE to immediately proceed to establish a Working Group in order to develop a proposal for consideration for a new Tailored Allocation Model, which is set out as one of the principal recommendations of the report.
