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Thursday, 10 Oct 2013

Written Answers Nos. 57-64

Consumer Protection

Questions (57)

Arthur Spring

Question:

57. Deputy Arthur Spring asked the Minister for Finance further to Parliamentary Question No. 191 of 1 October 2013, the options that are available to the consumer if an international insurance company licensed in Ireland, which plans to cease operation, fails to provide at least two months' notice to affected consumers to enable them to make alternative arrangements; and if he will make a statement on the matter. [42837/13]

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Written answers

If an insurance firm does not provide a consumer with two months' notice of their intention to cease operating, this is a potential breach of Section 3.11 of the Consumer Protection Code. The consumer can make a complaint to the Financial Services Ombudsman who deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers. The Office can be contacted at http://www.financialombudsman.ie/ and is a free service to the complainant. If there has been a breach of the Consumer Protection Code then the Central Bank of Ireland can consider enforcement action.

Government Pay Cap

Questions (58)

Joe Higgins

Question:

58. Deputy Joe Higgins asked the Minister for Finance the number of public servants who are being paid in excess of the Taoiseach’s salary and in excess of the Government’s pay cap; the annual cost of these excess payments over the past five years; and if he will make a statement on the matter. [42846/13]

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Written answers

The Government pay cap was introduced on 21 June 2011 on foot of a Government Decision (S180/20/10/1333) when it adopted a general policy of a €200,000 annual salary pay ceiling for new appointees to Senior Positions across the Public Service. This equalled the then Taoiseach's annual salary of €200,000 which was reduced under the FEMPI Act 2013 to €185,350 from 1 July last, a figure which now acts as the pay cap. Similarly in June 2011, a pay ceiling of €250,000 was adopted for future appointees to CEO positions in the Commercial State Companies.

No formal pay cap existed for the Public Service prior to the June 2011 decision. No employee in the Department of Finance is being paid in excess of the Taoiseach’s salary or in excess of the Government's pay cap.

Financial Services Ombudsman Issues

Questions (59)

Joe Higgins

Question:

59. Deputy Joe Higgins asked the Minister for Finance the number of determinations that were made by the Financial Services Ombudsman; the number of these that were appealed; the number of these appeals that were successful; the total legal cost of these appeals over the past five years; and if he will make a statement on the matter. [42847/13]

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Written answers

I received the following information from the office of the Financial Services Ombudsman Bureau: During the period from 1 January 2010 to 8 October 2013, the Financial Services Ombudsman (FSO) received a total of 29, 640 complaints; he issued some 10,753 findings during the same period. 142 findings were appealed to the High Court i.e. 1.32% of the finding issued. There have been 6 appeals to the Supreme Court to date.

Of the 142 appeals:

- 21 were allowed by the Court

- 26 were dismissed by the Court

- 19 were remitted to the FSO on consent

- 44 were withdrawn/settled/closed/adjourned for other reasons

- 32 are ongoing

The FSO's own legal costs from 1 January 2010 to date, including VAT was €2,586,832. This figure also includes the costs of the 6 Supreme Court appeals and some High Court appeals prior to 2010. High Court costs in appeals are awarded at the discretion of the Court. The payment and/or recovery of costs awarded in favour of or against the FSO are subject to negotiation and/or a recovery process, much of which is ongoing in respect of the period from 1 January 2010 to date. However not all costs awarded to the FSO lead to recovery either fully or partially, while every opportunity is taken to recover same.

VAT Rate Reductions

Questions (60)

Finian McGrath

Question:

60. Deputy Finian McGrath asked the Minister for Finance if he will support the retention of the 9% VAT rate in the restaurant sector in order to save jobs. [42913/13]

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Written answers

The 9% reduced VAT rate for tourism related services was introduced in July 2011 as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. In line with best international practice it was introduced as a temporary measure and is due to expire at end December 2013, at which point it will revert to 13.5%. Retaining the 9% rate would be very costly to the Exchequer and would require an increase in taxation or reduction in expenditure elsewhere. Any proposal to maintain the 9% VAT rate will be considered in the context of the Budget.

Question No. 61 answered with Question No. 51.

Banking Sector Issues

Questions (62)

Willie Penrose

Question:

62. Deputy Willie Penrose asked the Minister for Finance the reason Allied Irish Banks have entered an outsourcing agreement with a company in India, which effectively is outsourcing jobs at a time when we have 13.5% unemployment while there are companies in Ireland that clearly could accommodate the outsourced strategy for AIB; if this can be revisited and reviewed to ensure that Irish companies who are capable of carrying out this work are considered for same; and if he will make a statement on the matter. [42964/13]

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Written answers

The Deputy will be aware the Relationship Framework with the Allied Irish Banks provides that the State will not intervene in the day-to-day operations of the bank or their management decisions. This framework is published on the Department of Finance website. I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. I have been informed by AIB that the bank is seeking to deliver a better technology offering for customers as it attempts to return to sustainability over time. The decision to partner with the outsourcing company HCL has been taken as part of the overall strategy of introducing new productivity tools on the most commercial terms. The technical resources and expertise required to provide this service are in short supply in Ireland and AIB is similar to a number of companies in seeking support from an international company with access to scale and resources. AIB remains committed to managing the cost of and maximising value from this arrangement.

In line with AIB's normal practice all service providers’ contracts are reviewed periodically.

IBRC Liquidation

Questions (63)

Michael McGrath

Question:

63. Deputy Michael McGrath asked the Minister for Finance if there were any outstanding tax issues within the Irish Bank Resolution Corporation at the time of liquidation; if the special liquidators have become aware of any issues in respect of tax since their appointment; if the liquidators have engaged with the Revenue Commissioners regarding outstanding tax issues and or made a disclosure or settlement to Revenue; if the liquidators intend to make a settlement with or disclosure to the Revenue or both; and if he will make a statement on the matter. [42970/13]

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Written answers

I have been advised by the Special Liquidators that on the appointment of the Special Liquidators, Irish Bank Resolution Corporation Limited was already in dialogue with the Revenue Commissioners in relation to an open tax audit. The Special Liquidators are working with the Revenue Commissioners to close out the tax audit and some additional tax issues that have come to their attention. As these are matters which are still being reviewed and discussed between IBRC Limited (in Special Liquidation) and the Revenue Commissioners it would not be appropriate to comment any further at this time.

Further Education and Training Issues

Questions (64)

Bernard Durkan

Question:

64. Deputy Bernard J. Durkan asked the Minister for Education and Skills the total number of apprenticeships made available throughout the country in each of the past five years to date; the extent to which this has met demand; and if he will make a statement on the matter. [42791/13]

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Written answers

I am informed that the number of apprentices registered by employers in the past 5 years, as well as the total apprentice population for each year is as follows:

Year

Registrations

Apprenticeship population

2008

3,765

26,170

2009

1,535

21,407

2010

1,204

14,801

2011

1,307

13,001

2012

1,434

8,862

2013

1,266 (year to date)

7,725 (year to date

The above figures also include the relevant data for this year to date. I understand that the equivalent year to date figure for apprentice registrations for 2012 was 1,010 which indicates a 25% increase in 2013. Under the Action Plan for Jobs my Department has commissioned a review of the Apprenticeship Programme.

The consultative phase of the Review, has invited submissions from stakeholders in Apprenticeship, and the review will address three key themes:

-Consideration of the strengths and weaknesses of the current model of apprenticeship and what improvements can be made to its current structure

- An examination of the alternative methods of work-based training in Ireland

- Consideration of the structural mechanisms, and criteria, under which collaboration with industry/employers can be pursued into the future, either through improved, alternative or complementary models of work-based training. It is expected that the group leading the review will complete its work before the end of the year.

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