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Thursday, 23 Jan 2014

Written Answers Nos 36-44

Israeli Settlements

Questions (36)

Seán Crowe

Question:

36. Deputy Seán Crowe asked the Tánaiste and Minister for Foreign Affairs and Trade if his attention has been drawn to the fact that four EU countries - Britain, France, Italy and Spain - summoned the Israeli ambassador to their respective countries to hear their protests against Israel's latest announcement of new illegal settlement building in Palestine; and if he has, or is planning to, summon the Israeli ambassador to Ireland to protest against the latest settlement building announcement. [3244/14]

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Written answers

Other than where a common EU action is agreed, it is a matter for each Member State to decide for itself what means or diplomatic signals it wishes to employ to make a particular point. This might take into account, inter alia, their previous actions on the same subject or previous engagement with the same country. It does not therefore follow that if another EU partner decides to summon an Ambassador over an issue, that Ireland should do the same. The opposite is also true: we would not necessarily be deterred from doing so, because no other partner has yet done so.

It is frequently suggested, in the House or elsewhere, that a given Ambassador should be called in for a particular reason. Calling in Ambassadors is one of many types of diplomatic messaging, and a serious one, but its impact would be weakened if resorted to very frequently.

I have consistently made very clear the Government’s strong criticism of and opposition to settlements and settlement expansion, and I specifically criticised the recent Israeli announcement in the Dáil last week, during answers to Questions. The Israeli Government, and Israeli public opinion, are in no doubt whatever about our views on this issue.

Northern Ireland Issues

Questions (37, 38, 39)

Gerry Adams

Question:

37. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to meet any of the other party leaders in Northern Ireland to discuss the outcome of the Haass talks. [2227/14]

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Gerry Adams

Question:

38. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to meet the First and Deputy First Ministers of Northern Ireland following the outcome of the Haass talks. [2226/14]

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Gerry Adams

Question:

39. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade the contact he has had with the British Government over and since the Christmas and New Year recess. [2224/14]

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Written answers

I propose to take Questions Nos. 37 to 39, inclusive, together.

Throughout the period of the Talks, I spoke to and met with all of the Parties, with Drs Haass and O’Sullivan and with the British Government on numerous occasions. I made clear and demonstrated my support for the process and my willingness to meet with participants throughout.

I believe that my engagement, and that of the Taoiseach, with all Parties over the past number of months has been helpful not only in the context of ongoing work in relation to the Haass proposals but is also very valuable in terms of strengthening and deepening Government relations across the NI Executive.

Throughout the Talks, I have made clear to all participants and stakeholders the Government’s view that there is now a unique opportunity to make further progress towards advancing reconciliation and the creation of a truly reconciled and prosperous society in Northern Ireland. That remains the Government’s view and we will continue our engagement with the Northern Ireland Political Parties and the British Government to that end.

While acknowledging that the issues to be addressed in the talks are difficult and contentious, the Government encouraged the parties to be ambitious in their approach. I welcome that very significant progress was made within the talks process over a short period on a number of the most difficult issues that face society in Northern Ireland. The priority now should be to safeguard and give practical effect to what has been achieved.

Since New Year, I have maintained contact with all of the party leaders and have made clear my intention of engaging closely with them as they seek to conclude their important work on what are some of the most divisive issues in Northern Ireland.

I welcome that the five parties in the NI Executive have been meeting to discuss and agree the next steps.

The Government will play its role to the full in partnership with the NI Parties to the full as they complete their work on an agreement.

In regard to specific contacts, I have spoken with all the party leaders since the talks concluded. I met with the first Minister and Deputy first Minister and hope to have an opportunity to speak with each again shortly. I have had numerous discussions with Secretary of State Theresa Villiers and I met her in Hillsborough last week. I believe there is a shared sense of purpose on the part of both governments to see this process brought to an early conclusion.

NewERA Remit

Questions (40)

Michelle Mulherin

Question:

40. Deputy Michelle Mulherin asked the Minister for Finance if he will report on the progress to date of NewERA; if he will identify which of its original functions it is performing fully and its original functions it is not performing fully; when it is expected to perform the functions fully; and if he will make a statement on the matter. [3376/14]

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Written answers

In September 2011 the Government announced the establishment of NewERA, initially on a non-statutory basis, within the NTMA. The core activities of NewERA since its establishment have been:  advising on the disposal or restructuring of State assets; activities to facilitate investment in economic infrastructure; and provision of corporate finance and governance advice in respect of certain State entities and assets.

These activities have involved NewERA providing independent corporate finance advice and financial analysis to Government on a range of issues across its remit and actively engaging with relevant stakeholders and Government Departments. Its work to date includes the following:

State Asset Disposals

NewERA is advising the Government in relation to the sale of BGE's energy business. A consortium comprising Centrica plc, Brookfield Renewable Power Inc and iCON Infrastructure was selected on 12 December as the preferred bidder for the business.

NewERA provided advice to the relevant Government Departments in relation to the sale in November 2013 of ESB's 50% shareholding in UK-based Marchwood Power Ltd where it achieved a price above expectations and which, it is anticipated, will realise €140 million in dividends for the Exchequer this year.

Following the June 2013 Government decision in relation to Coillte, the restructuring of the company will be overseen by NewERA and the relevant stakeholder departments. NewERA is also undertaking further financial analysis to evaluate how to give effect to a beneficial merger of Bord na Móna and Coillte (this will involve analysing possible synergies between the investment programmes of Bord na Móna and Coillte).

Activities to Facilitate Investment in Economic Infrastructure

NewERA has also been working with the relevant Government Departments and other stakeholders on investment initiatives in the areas of water, energy retrofit, export wind and broadband.

Corporate Finance and Governance Advice

NewERA has provided detailed financial analysis and recommendations (where appropriate) to relevant Ministers on requests for Ministerial consents received from the relevant commercial State entities (ESB, Bord Gais Eireann, Bord na Móna, Coillte and EirGrid)-"CSS" entities. These requests primarily stem from legislative obligations on the CSS entities to seek Ministerial approval (e.g. for an entity to borrow) or arise under the Code of Practice for the Governance of State Bodies. This analysis includes (where appropriate) a financial review of the relevant CSS entity's capital investment programmes.

NewERA has begun the process of reviewing the dividend policies of the CSS entities and has provided advice to the relevant Government Departments on a revised dividend policy for ESB, which was announced by ESB on 23 October 2013, and which provides for an increased dividend pay out to the State from 2015. 

Current status

In June 2013 the Government announced legislative proposals for putting NewERA on a statutory basis and the Heads of the NTMA (Amendment) Bill which will, inter alia, put NewERA on a statutory footing are with the Office of the Attorney General for drafting. This Bill will also provide for the establishment of the Ireland Strategic Investment Fund (ISIF) by reorienting the National Pensions Reserve Fund and making the €6.4 billion in the Fund's discretionary portfolio available for commercial investment in Ireland.

An interdepartmental Steering Group (chaired by the Department of Public Expenditure and Reform) has been tasked with reviewing the options of of moving to a full holding company structure for the ownership of commercial State companies with the Group to report to Government on the matter in due course.

Ireland Strategic Investment Fund Management

Questions (41, 43)

Michelle Mulherin

Question:

41. Deputy Michelle Mulherin asked the Minister for Finance the status of the Ireland Strategic Investment Fund; the amount it has to invest for this year and each of the following four years; the amount it has invested to date; and if he will make a statement on the matter. [3379/14]

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Michelle Mulherin

Question:

43. Deputy Michelle Mulherin asked the Minister for Finance where has the Ireland Strategic Investment Fund invested money; and if he will make a statement on the matter. [3381/14]

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Written answers

I propose to take Questions Nos. 41 and 43 together.

The National Pensions Reserve Fund (NPRF) was valued at €15.6 billion at 30 September 2013. The directed portfolio (public policy investments in Allied Irish Banks and Bank of Ireland made at the direction of the Minister for Finance) was valued at €9.0 billion and the discretionary portfolio (the investment of which remains the responsibility of the NPRF Commission) was valued at €6.6 billion. 

The asset allocation of the discretionary portfolio at 30 September 2013 is set out below:

Asset Class

€ m

% of Discretionary Portfolio

Large cap equity

1,245

19.0

Small cap equity

247

3.8

Emerging markets equity

475

7.2

Quoted Equity

1,967

30.0

Eurozone government bonds

160

2.4

Eurozone inflation linked bonds

121

1.8

Eurozone corporate bonds

389

5.9

Cash

1,803

27.5

Financial Assets

2,473

37.7

Private Equity

716

10.9

Property

402

6.1

Commodities

305

4.7

Infrastructure

434

6.6

Absolute return funds

248

3.8

Alternative Assets

2,105

32.1

Value of Equity Options

8

0.1

Total Discretionary Portfolio

6,553

100

 

As recently announced, the Government has decided to reorient the NPRF into the Ireland Strategic Investment Fund (ISIF), which will allow the resources of the NPRF to be deployed towards productive investment in the Irish economy. It is intended that the impact of ISIF investments is maximised by attracting private sector co-investment.

In anticipation of  the establishment of the ISIF, the NPRF Commission has made a number of investment commitments in Ireland, including a substantial number of co-investments, while remaining within its current investment mandate under the NPRF legislation.  A detailed table of these NPRF commitments to investment in Ireland as at 30 September 2013 is set out below:

Investment

NPRF CommitmentCapital (€m)

3 rd Party Capital (€m)

Total project size

Innovation Fund Ireland

125

125

250

Local Venture Capital Funds

69

320

389

Irish Corporate Bonds

79

-

79

Irish Forestry

36

187

223

Irish Infrastructure Fund

250

66

316

SME Equity Fund Better Capital

50

50

100

SME Equity Fund Cardinal Carlyle

125

100

225

SME Credit Fund BlueBay

200

250

450

Irish Water

250

-

250

Total Committed

1,182

1,030

2,212

Expected future commitments of NPRF

81

368

449

Total Commitments

1,263

1,398

2,661

In addition to the above table the National Pensions Reserve Fund has provided a stand-by credit facility for the N11 and Schools Bundles 3 Public-Private Partnership projects.

An update on the performance of the NPRF is currently being prepared and should be available shortly.

Legislation to establish the ISIF is being prepared and I expect it to be published in the first quarter of this year.

Job Creation

Questions (42)

Michelle Mulherin

Question:

42. Deputy Michelle Mulherin asked the Minister for Finance the number of jobs that have been created as a result of investments by the Ireland Strategic Investment Fund; and if he will make a statement on the matter. [3380/14]

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Written answers

It has not been possible to prepare a reply in the timeframe available. I will write to the Deputy once the issue raised has been explored.

Question No. 43 answered with Question No. 41.

Insurance Coverage

Questions (44)

Terence Flanagan

Question:

44. Deputy Terence Flanagan asked the Minister for Finance the steps he will take to ensure that homes damaged in recent storms will continue to have home insurance; and if he will make a statement on the matter. [3429/14]

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Written answers

At the outset, it should be noted that the issue of flood cover and its unavailability is one which I am familiar with. I am also very conscious of the difficulties that the absence of such cover can cause to householders and businesses. However, I am not in a position to direct insurance companies to provide flood cover to specific individuals. The issue of provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting.

The idea of making flood insurance compulsory has been considered. However, it would mean that in areas where there was likely to be regular flooding, the cost of insurance would almost certainly be prohibitive and could make premiums unaffordable for policyholders in general.

On the question of legislation, the Government has also examined the introduction of a scheme to protect householders who cannot obtain household insurance in respect of flooding from regular insurance bodies. However, this approach was not considered financially viable because it was believed that over time it would incentivise industry to discontinue the provision of cover in medium and high risk areas thus making the cost of such a scheme prohibitive.

What the Government can do, however, is try to address the underlying problem through appropriate remedial works where this is economically feasible. The Office of Public Works (OPW) is committed to doing all it can to alleviate the impact of flooding through the provision of defences as well as a comprehensive assessment of flood risk throughout the country and development of flood risk management plans for the areas most at risk under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme. This commitment is underpinned by a very significant capital works investment programme which will see up to €225 million being spent on floor relief measures over a five year period from 2012 to 2016.

Most of the damage arising from the recent stormy weather was in coastal counties in the West and South.  OPW, along with other relevant Departments and Offices, will be providing financial support to local authorities in relation to the repair of public infrastructure damaged in the storms. In OPW's case the support will relate to damaged coastal flood defence structures such as rock armour revetments, sea walls.

In relation to the issue of the provision of flood cover in areas where the OPW has carried out flood relief works, the OPW and Insurance Ireland have been engaged in discussions to agree on a sustainable system of information sharing in relation to completed flood alleviation schemes and works undertaken by the OPW, or in certain instances by local authorities with OPW funding, and where the standard of protection afforded by these works could be verified.  These parties have reached agreement in principle but with some operational details to be finally sorted by the insurance companies.

The outcome of these discussions means that the insurance industry will have a much greater understanding of the extent of the protection provided by flood defence works and will, therefore, be in a position to provide the necessary flood cover to householders in such areas. In cases where individuals which are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly it is open to them to contact the Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at info@insuranceireland.eu

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