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Thursday, 30 Jan 2014

Written Answers Nos 21-40

Broadband Service Provision

Questions (21)

Bernard Durkan

Question:

21. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which he expects broadband facilities in this jurisdiction to be comparable, in terms of quality, speed and availability, with the best available globally in order to ensure that this economy can compete internationally; and if he will make a statement on the matter. [4232/14]

View answer

Written answers

Ireland’s telecommunications market has been fully liberalised since 1999 in accordance with the requirements of binding EU Directives. The market has since developed into a well-regulated market, supporting a multiplicity of commercial operators, providing services over a diverse range of technology platforms. Details of broadband services available in each County, including Counties Galway and Limerick, can be found on ComReg’s website at www.callcosts.ie .

The Government’s National Broadband Plan, which I published in August 2012, aims to radically change the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing:

- policy and regulatory framework that assists in accelerating and incentivising commercial investment, and

- a State-led investment for areas where it is not commercial for the market to invest.

Since the publication of the Plan, investments by the commercial sector are underway and in some instances have been accelerated in both fixed line and wireless high speed broadband services. In the fixed line segment of the market, eircom has announced plans to pass 1.4m premises with its next generation broadband service, with speeds of up to 100Mbps, while UPC has increased its entry level and maximum speeds to 120Mbps and 200Mbps respectively. Mobile operators have also made announcements regarding network upgrades and are rolling out enhanced product offerings, following the successful multiband spectrum auction last year. Last week, I introduced legislation in the Dáil, to allow the ESB to utilise its electricity network to install a new high speed broadband communications network.

In tandem with these developments, intensive work is underway in my Department to progress a State-led investment to secure the countrywide introduction of next generation broadband access. In order to progress the State-led investment for areas where it is not commercial for the market to invest, a full procurement process must be designed and EU State Aids approval must be obtained. My Department is engaged in a comprehensive mapping exercise of the current and anticipated investment by the commercial sector over the coming years, the results of which will inform the areas that need to be targeted in the State-led investment as envisaged in the National Broadband Plan.

Intensive technical, financial and legal preparations, including stakeholder engagement, are ongoing. The procurement process for the approved intervention will be carried out in accordance with EU and Irish procurement rules and it is expected that it will be launched later this year.

Through the implementation of the National Broadband Plan, I am committed to ensuring that all parts of Ireland have access to high speed broadband, with a view to ensuring that all citizens and businesses can participate fully in, and maximise the benefits of a digitally enabled economy and society.

Digital Television Service Provision

Questions (22)

Thomas P. Broughan

Question:

22. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources his position on the recently completed external report on the viability of digital terrestrial television; and if he will meet the chairman of the Broadcasting Authority of Ireland to discuss the findings of the report. [4116/14]

View answer

Written answers

Section 131(4) of the Broadcasting Act obliges the Broadcasting Authority of Ireland to endeavour to arrange for the establishment, maintenance and operation of three national television multiplexes capable of being transmitted by digital terrestrial means to the whole community of the State.

Following the unsuccessful process for licensing a commercial DTT operator in 2009/2010, the Authority decided to re-examine the potential for commercial DTT on completion of the Digital Switch Over in late 2012.

The Authority was assisted in its review by independent consultants, Oliver & Ohlbaum Associates. The resultant report analyses market conditions, including interviews with a range of stakeholders with an interest in the development of commercial DTT in Ireland. In exploring the prospects for commercial DTT, the review considered a number of possible business models, including a free service, a pay service and a service operated as part of a triple play bundle.

I am disappointed with the findings of the report in regard to the prospects for commercial DTT in Ireland but it is reflective of the persistent difficult economic circumstances facing the broadcasting sector and indicative of the range and availability of pay per view offerings. However, I recognise the on-going need to provide a varied and relevant range of free-to-air services for the Irish population and I and my Department will continue to work with the BAI and other stakeholders in this regard.

Offshore Renewable Energy Development Plan Publication

Questions (23)

David Stanton

Question:

23. Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources when he expects to publish the offshore renewable energy development plan; his plans to develop offshore renewable energy potential, in particular ocean energy; and if he will make a statement on the matter. [4306/14]

View answer

Written answers

I will shortly be publishing an Offshore Renewable Energy Development Plan (OREDP). Informed by the findings of a Strategic Environmental Assessment, the OREDP will identify how best to coordinate action across the environmental, energy and economic development policy areas in order to realise Ireland's abundant offshore renewable energy potential, using both offshore wind, and emerging ocean, renewable energy technologies.

It is clear from the work that my Department has been undertaking to develop the OREDP, that cross cutting action is required to maintain support for the ocean sector if it is to successfully reach commerical viability. Full coordination across government departments and agencies on areas such as environmental monitoring, research and development, consenting procedures, infrastructure requirements and enterprise development, will all be critical to realising the potential of this sector as a source of sustainable employment and economic growth, especially in those coastal communities where job creation is particularly challenging.

While the OREDP will contain new measures, which I will announce shortly, it will also add real value by providing a structure through which existing measures can be fully coordinated. My Department already supports ocean energy through the funding for the Ocean Energy Development Unit in the Sustainable Energy Authority of Ireland (SEAI), which administers the Prototype Development Fund, designed to support the development and deployment of ocean energy devices. The SEAI has also been allocated €5 million for the development of the Atlantic Mayo Energy Test Site, which will be a site of international importance for open sea testing of ocean energy devices. In conjunction with the Department of Agriculture, Food and the Marine, my Department also provides funding for the Integrated Maritime Energy Research Centre (IMERC) in Cork. A partnership between UCC, Cork Institute of Technology and the Irish Naval Service, IMERC is developing an integrated maritime research and enterprise centre at its campus at Ringaskiddy in Cork, which includes internationally recognised expertise in ocean energy. In total, my Department has allocated a total of €26.3 million in funding for ocean energy for the period 2013 to 2016.

Broadband Service Speeds

Questions (24)

Michael Colreavy

Question:

24. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the current average broadband upload and download speed for the State; if he will provide the average upload and download speed by county; and if he will make a statement on the matter. [4293/14]

View answer

Written answers

Regulation of the electronic communications market, including the gathering of market data and publication of national statistical reports, is the responsibility of the Commission for Communications Regulation (ComReg). ComReg, has established a call costs website www.callcosts.ie which provides information to the public on the alternative broadband services marketed by competing service providers on a county by county basis. ComReg does not collect or publish data on the average broadband speeds provided nationally or within counties.

The ESRI published a working paper in May 2012, based on ComReg's call costs data, which compared median broadband speeds marketed by county across Ireland. The report was published prior to the upgrade of high speed broadband services by UPC, the launch of eircom's eFibre programme and the ComReg multiband spectrum auction aimed at facilitating the rollout of 4G mobile broadband services. It concluded however that that a clear pattern had emerged of widespread improvements in choice and quality for broadband consumers in Ireland. It further concluded that variations in access to higher broadband speeds is more likely to be a consequence of residing in an urban, suburban or rural area in any county rather than a variation in marketed speeds between counties.

The Government’s National Broadband Plan, which I published in August 2012, aims to radically change the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing

- a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and

- a State-led investment for areas where it is not commercial for the market to invest.

The Government’s National Broadband Plan, which I published in August 2012, aims to radically change this broadband landscape by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and a State-led investment for areas where it is not commercial for the market to invest.

Since the publication of ESRI's working paper and the National Broadband Plan, investments by the commercial sector are underway and in some instances have been accelerated in both fixed line and wireless high speed broadband services. In the fixed line segment of the market, eircom has announced plans to pass 1.4m premises with its next generation broadband service, with speeds of up to 100Mbps, while UPC has increased its entry level and maximum speeds to 120Mbps and 200Mbps respectively. Mobile operators have also made announcements regarding network upgrades and are rolling out enhanced product offerings following the conclusion of ComReg's successful multiband spectrum auction. Last week, I introduced legislation in the Dáil, to allow the ESB to utilise its electricity network to install a new high speed broadband communications network.

These developments have been facilitated through the implementation of measures in the National Broadband Plan, including the conclusion of ComReg's multiband spectrum auction, and the new regulatory regime for fixed line Next Generation Access and service bundles. Both of these measures are designed to incentivise the rollout of services by operators.

In tandem with these developments, intensive work is underway in my Department to progress a State-led investment to secure the countrywide introduction of next generation broadband access. In order to progress the State-led investment for areas where it is not commercial for the market to invest, a full procurement process must be designed and EU State Aids approval must be obtained. My Department is engaged in a comprehensive mapping exercise of the current and anticipated investment by the commercial sector over the coming years, the results of which will inform the areas that need to be targeted in the State-led investment as envisaged in the National Broadband Plan.

Intensive technical, financial and legal preparations, including stakeholder engagement, are ongoing. The procurement process for the approved intervention will be carried out in accordance with EU and Irish procurement rules and it is expected that it will be launched in 2014.

Through the implementation of the National Broadband Plan, I am committed to ensuring that all parts of Ireland have access to high speed broadband, with a view to ensuring that all citizens and businesses can participate fully in, and maximise the benefits of, a digitally enabled economy and society.

Energy Regulation

Questions (25)

Michael Moynihan

Question:

25. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the progress he has made in developing a new fiscal and regulatory framework for oil and gas exploration industry here; the person he has consulted in developing this new framework; the costs of developing this framework; and if he will make a statement on the matter. [4249/14]

View answer

Written answers

On 9 May 2012 the former Joint Oireachtas Committee on Communications, Natural Resources and Agriculture published its Report on Offshore Oil and Gas Exploration. The Report contained a number of recommendations in respect of the fiscal and regulatory framework applying to oil and gas exploration in Ireland.

At my request the Report was debated in Seanad Éireann on 27 June 2012 and in Dáil Éireann on 14 May 2013, with the debate concluding on 9 July 2013.

During the course of the Dáil debate I stated my intention to seek further independent expert advice on the “fitness-for-purpose” of Ireland’s fiscal terms, such expert advice to focus on what level of fiscal gain is achievable for the State and its citizens and, equally important, on the mechanisms best suited to produce such a gain.

On 24 September 2013 my Department issued a request for tenders under national procurement rules on etenders.gov.ie for the provision of expert advice on Ireland's oil and gas exploration development and production fiscal terms.

On further consideration of the nature of the assignment required to be undertaken by a successful tenderer, in particular the need for the successful tenderer to address the issues raised in the wider public debate on the fitness for purpose of the current fiscal terms, my Department on 23 December 2013 re-tendered the revised assignment in the Official Journal of the European Union and on etenders.gov.ie. The closing date for the receipt of responses to the revised request for tenders is 3 February 2014.

The revised terms of reference for the assignment are as follows:

Having regard to the fact that Ireland’s indigenous oil and gas resources belong to the people and to the policy goal of maximising the benefits to the State from exploration for and extraction of those resources, the Minister for Communications, Energy and Natural Resources is seeking expert advice as to:

(i) The “fitness for purpose” of Ireland’s current fiscal regime for oil and gas exploration, development and production having regard to:

- The petroleum prospectivity of the Irish offshore;

- Ireland’s relative attractiveness as a location for mobile international exploration investment;

- The findings of the May 2012 report of the former Joint Oireachtas Committee on Communications, Natural Resources and Agriculture, together with the debate of that report by Dáil Éireann;

- Issues raised through the wider public debate on the fitness for purpose of Ireland’s fiscal regime;

- Comparative international experience; and

- Other relevant reports.

(ii) Supported by analysis, whether revisions should be made to the fiscal licensing regime, in particular having regard to:

- The level at which the terms are set;

- The nature of the instruments used; and

- The tax reliefs available, including both the nature and timing of tax reliefs.

- It is intended to bring consideration of this matter to a conclusion in the coming months. This will ensure that the next licensing round can be launched against a backdrop of regulatory certainty and encourage new investment in exploration.

The Petroleum and Other Minerals Development Act 1960 provides the legislative underpinning to the regulatory framework applying to oil and gas exploration in Ireland. The Act is important in setting out the high-level exploration licensing regime and the rights conferred by the various authorisations. Since it was enacted, a broad body of legislation at national and European Union level that is directly relevant to petroleum exploration and production activities, including planning, safety and environmental legislation, has been passed. Against that background, my Department is currently engaged in a review of the 1960 Act.

Question No. 26 answered with Question No. 12.

National Digital Strategy Implementation

Questions (27)

Michael Moynihan

Question:

27. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the progress made by his Department in implementing the national digital strategy; if he is satisfied with the progress made to date with national broadband scheme; and if he will make a statement on the matter. [4252/14]

View answer

Written answers

The Government's National Digital Strategy was published in July 2013. Phase 1 of the Strategy focuses on actions in 3 key areas – citizen engagement, small business, and digital in learning and significant progress is being made in implementing actions in these areas:

- The Government provided funding of €5m this year for the implementation of an Online Trading Voucher Scheme for small businesses and this scheme is being piloted in the Dublin area at present involving 25 companies. A second Dublin based pilot, comprising a further 25 companies, will start in February followed by a full national roll out of this scheme during 2014.

- Digital training for citizens is ongoing. The individual grants available as part of the BenefIT 4 scheme were announced in July last and training began in early Autumn. Training is currently available at over 570 locations nationwide and it is expected this will grow to about 700 locations.

- My Department in conjunction with the Department of Education and Skills are in the process of rolling out high speed broadband to post-primary schools and have commenced the roll out of phase III of the 100Mbps schools project. This will cover 272 schools in 9 counties: Carlow, Cork, Kerry, Kilkenny, Limerick, Tipperary, Waterford, Wicklow and Wexford. This will complete the national rollout to some 516 post-primary schools. The final 272 schools will have a 100Mbps connection by the beginning of the new academic year in September 2014. In addition, my Department has commissioned the Economic and Social Research Institute to research the learning outcomes as a consequence of enhanced broadband connectivity.

- A suite of “Switch On” workshops will target schools to promote the use of digital and to assist them to overcome barriers to use of high-speed broadband. These workshops are under development and are targeted to be rolled out in March

- In December 2012, Lord David Puttnam was appointed as Ireland’s first Digital Champion. In addition to his engagements with the European Commission and other Digital Champions, he is undertaking a number of strategic engagements with key stakeholders on the National Digital Strategy throughout 2014.

Macro-economic research on the value of digital to the economy of Ireland was published as part of the National Digital Strategy. It indicated that digital contributed 4.4% to Ireland’s GDP in 2012 and is supporting up to 95,000 jobs. The digital part of the economy in Ireland is growing at 16% per year.

In tandem with measures to stimulate uptake and use of technology in society, the Government's National Broadband Plan, which I published in August 2012, aims to radically change the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing:

- a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and

- a State-led investment for areas where it is not commercial for the market to invest.

Since the publication of the Plan, investments by the commercial sector are underway and in some instances have been accelerated in both fixed line and wireless high speed broadband services. In the fixed line segment of the market, eircom has announced plans to pass 1.4m premises with its next generation broadband service, with speeds of up to 100Mbps, while UPC has increased its entry level and maximum speeds to 120Mbps and 200Mbps respectively. Mobile operators have also made announcements regarding network upgrades and are rolling out enhanced product offerings. Last week, I introduced legislation in the Dáil, to allow the ESB to utilise its electricity network to install a new high speed broadband communications network.

These developments have been facilitated through the implementation of measures in the National Broadband Plan, including the conclusion of ComReg's multiband spectrum auction, and the new regulatory regime for fixed line Next Generation Access and service bundles. Both of these measures are designed to incentivise the rollout of services by operators.

In tandem with these developments, intensive work is underway in my Department to progress a State-led investment to secure the countrywide introduction of next generation broadband access. In order to progress the State-led investment for areas where it is not commercial for the market to invest, a full procurement process must be designed and EU State Aids approval must be obtained. My Department is engaged in a comprehensive mapping exercise of the current and anticipated investment by the commercial sector over the coming years, the results of which will inform the areas that need to be targeted in the State-led investment as envisaged in the National Broadband Plan.

Intensive technical, financial and legal preparations, including stakeholder engagement, are ongoing. The procurement process for the approved intervention will be carried out in accordance with EU and Irish procurement rules and it is expected that it will be launched in 2014.

Through the implementation of the National Broadband Plan, I am committed to ensuring that all parts of Ireland have access to high speed broadband, with a view to ensuring that all citizens and businesses can participate fully in, and maximise the benefits of, a digitally enabled economy and society.

Hydraulic Fracturing Policy

Questions (28)

Michael Moynihan

Question:

28. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if his Department has made submissions to the European Commission regarding Europe-wide regulations relating to the practice of hydraulic fracturing; when guidelines will be issued here; and if he will make a statement on the matter. [4251/14]

View answer

Written answers

At its own initiative the Europeam Commission has issued a Recommendation providing minimum principles for the exploration and production of hydrocarbons (especially shale gas) by means of high volume hydraulic fracturing. This Recommendation was included as part of a set of proposals published by the Commission on 22 January, 2014 and is available on the Commission's website.

The Recommendation contains eighteen provisions, including inter alia strategic planning and assessment of environmental impacts, baseline studies, operational requirements, use of chemicals, monitoring requirements, environmental liability and financial guarantees, sanctions and administrative capacity.

My priority for now is the research programme to be overseen by the EPA in Ireland. That research programme will consider all stages of unconventional gas exploration and extraction projects and operations, including construction, commissioning, operating, decommissioning and aftercare, as well as off-site and other developments.

Detailed information on the regulatory approaches of other countries that have experience with this activity will also be considered. The research programme is expected to consider a minimum of five countries including at least one country where a moratorium on unconventional gas exploration has been introduced.The EPA research will consider the specific potential environmental impact of hydraulic fracturing in Ireland.

It is my view that guidance to ensure consistency of environmental assessment for developments proposing the use of hydraulic fracking throughout Member States is to be welcomed. It is anticipated that such guidance will continue to develop in accordance with both scientific research and technological progress throughout Europe.

Post Office Network

Questions (29)

Denis Naughten

Question:

29. Deputy Denis Naughten asked the Minister for Communications, Energy and Natural Resources the steps being taken to support the maintenance of the post office network; and if he will make a statement on the matter. [4119/14]

View answer

Written answers

It is Government policy that An Post remains a strong and viable company, in a position to provide a high quality, nationwide postal service and maintain a nationwide customer focussed network of post offices in the community.

Operational matters and the role of developing commercial strategies for the post office network are, of course, a matter for the management and Board of An Post and one in which I have no statutory function. As shareholder, however, I have a strong concern in relation to the ongoing commercial position of the Company and I regularly liaise with the Company in this regard.

The Post Office Network has many strengths and has the largest retail presence in the country. I have been supportive of its attempts to diversify its income streams and to win a wider range of commercial contracts offering higher margins.

I have welcomed the selection of An Post as the provider of over the counter cash services for social welfare customers. The social welfare contract is the largest contract held by the post office division of An Post. The Department of Social Protection intends to implement a strategy whereby the bulk of social welfare payments will be made electronically and has recently published a Request For Information on ePayment Solutions for welfare clients and associated business processes. I understand that the post office network will pitch strongly for the social welfare e-payment business when it is put out to tender by the Department of Social Protection.

Having invested in the computerisation of all post offices, the post office network is well positioned to become the front office provider of choice for Government and financial services sector. Progress towards diversification within the financial services sector is already underway with the enhanced arrangement with AIB and the agreement with Aviva for the transfer of their branch offices personal insurance business to One Direct.

In the context of the public sector transformation agenda I will continue to engage with my colleague, the Minister for Public Expenditure and Reform in relation to consideration, as appropriate, of the post office network for transactional elements of the business of Government Departments and Agencies and have stressed to my Government colleagues that the network is ideally configured for over the counter transactions. Any such developments would, of course, need to be subject to public procurement requirements as appropriate.

Overall, I see a strong future for the network by using its existing strengths to remain a significant player as a front office for Government services. In this connection, The post office network has secured over the counter Local Property Tax payments. Garda fixed fines, TV licences and passports can all be paid or purchased at the post office as well as dog licences and toll fees. I also see a strong role for the post office network in the next phase of the standard bank account project as the target segment for this project are already comfortable in using post offices for financial transactions.

Electricity Generation

Questions (30)

Bernard Durkan

Question:

30. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which he and his Department have studied the adequacy of the electricity generating capacity from non-fossil sources to meet this country’s requirements over the next ten to 12 years in the event of a 3.5% economic growth rate over the same period facilitating increased employment and investment; the extent to which it is expected to achieve self-sufficiency and reduce dependency on imports in this regard at the same time; if it is expected to retain sufficient surplus to requirements throughout the same period to protect against blackouts; and if he will make a statement on the matter. [4231/14]

View answer

Written answers

The overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy to all consumers. Ireland is currently heavily reliant on imported fossil fuels to meet our energy needs. While it is acknowledged that fossil fuels will remain part of the energy mix for some time to come, progress is being made towards increasing the share of renewable energy in our generation porfolio. The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. In order to meet this target, Ireland is committed to meeting 40% of electricity demand from renewable sources. Figures for 2012 show that 19.6% of electricity demand was met from renewables.

To date wind energy has been the largest driver of growth in renewable electricity, contributing most towards the achievement of the 2020 target. In 2012 15.3% of electricity demand was met by wind generation. At the end of 2013, the total amount of renewable generation connected to the grid was 2,300 MW. It is estimated that a total of between 3,500 and 4,000 MW of onshore renewable generation capacity will be required to allow Ireland to meet its 40% renewable electricity target. Currently, around 3,000 MW of renewable generation has taken up connection offers under the Gate 3 grid connection programme.

EirGrid's most recent Generation Capacity Statement, covering the period 2013 - 2022, deals with both renewable and conventional sources. It shows a positive outlook for power generation adequacy over the next decade for Ireland. However, EirGrid has also stated the need for reinforcment and upgrading of the high voltage transmission grid to ensure that reliable electricity supplies can be maintained to all regions, and allow Ireland to attract and retain investment and create jobs. This work is being carried out by EirGrid through their Grid 25 programme and is also essential if we are to leverage our abundant, indigenous, renewable energy resources and realise the potential they offer for reducing our dependence on imported fossil fuels. The renewable energy sector has also been identified by both the IDA and Enterprise Ireland as a key growth area in their clean technology strategies. Therefore, increasing the renewable element of our energy mix will contribute to improving our energy security and our economic development.

As we look towards a new EU energy and climate change framework for 2030, the need to expand the renewable generation portfolio becomes apparent. This presents the opportunity to facilitate the development of additional technologies such as offshore renewable energy, which is the subject of an Offshore Renewable Energy Development Plan, which I will be publishing shortly.

Hydraulic Fracturing Policy

Questions (31)

Clare Daly

Question:

31. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources if his Department will conduct any studies into the increased threat of environmental problems from fracking in areas that are prone to flooding in view of such experiences in parts of the United States. [4117/14]

View answer

Written answers

I have stated on a number of occasions that I do not propose to consider applications for petroleum authorisations in respect of projects proposing the use of hydraulic fracturing until the EPA Research Programme has concluded and there has been time to consider its findings.

In November of last year the EPA launched a call for tenders, with the selection process to conclude by March this year, to appoint the relevant expertise to conduct detailed research into the potential impacts of hydraulic fracturing on the environment. The research will consider baseline characterisation with regard to water, seismic and air quality, potential impacts and mitigations and best practice regulatory framework.

I have also made it clear that should the EPA research conclude that this technology can be used in a manner that protects the environment, that any application for an exploration licence that proposed the use of hydraulic fracturing as part of an unconventional gas exploration programme would be subject to a full environmental impact assessment. An environmental impact assessment entails consideration of the potential impacts of a project on population, fauna, flora, soil, water, air, climatic factors, material assets, including the architectural and archaeological heritage, landscape and the inter-relationship between the above factors. Under the EIA Directive, it is not possible to permit a project unless it can be determined following assessment that it would not have an unacceptable environmental or social impact.

Departmental Contracts

Questions (32)

Shane Ross

Question:

32. Deputy Shane Ross asked the Tánaiste and Minister for Foreign Affairs and Trade the way his departmental contracts for taxi companies for the purposes of taxis for the use of departmental staff are decided and allocated; if there is a public tender process for taxi companies wishing to apply for these contracts; the process for allocating the contracts; and if he will make a statement on the matter. [4645/14]

View answer

Written answers

It is my Department’s policy that taxis should only be used by staff where public transport is unavailable or not feasible for business reasons.

My Department ran an open tender process for the provision of taxi services at its Dublin headquarters in January 2011, which was advertised via the Government’s e-procurement portal www.etenders.gov.ie and in the Official Journal of the European Union. The contract was awarded on the basis of most economically advantageous tender having regard to the following criteria:

Quality of Service Proposal, which is comprised of:

60%

Capacity of the tenderer to deliver a quality service having regard to the Department’s requirements;

40%

Complaints procedures and references

10%

Quality Assurance

5%

Environmental Policy

5%

Overall Cost

40%

The contract was awarded to National Radio Cabs in June 2011 with an initial term of one year, renewable annually to a maximum of four years, subject always to satisfactory performance. It has been renewed twice (in 2012 and 2013) and there is one more option for renewal remaining for consideration in 2014.

Northern Ireland Issues

Questions (33)

Brendan Smith

Question:

33. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to have further discussions with the Secretary of State for Northern Ireland and members of the Northern Ireland Executive on the urgent need to progress to a successful conclusion the proposals outlined by Ambassador Haass; and if he will make a statement on the matter. [4785/14]

View answer

Written answers

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 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.

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 Northern Ireland Executive 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 regularly to discuss and agree the next steps.

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

In regard to specific contacts, I am in contact with the Northern Ireland party leaders, including the First Minister and deputy First Minister, and will meet with the First Minister today. I will also today be speaking with Richard Haass who continues to be supportive of the ongoing process. I remain in regular contact with the Secretary of State Theresa Villiers. I believe there is a shared sense of purpose on the part of both governments to see this process brought to an early conclusion.

Job Initiatives

Questions (34)

John Lyons

Question:

34. Deputy John Lyons asked the Minister for Finance the position regarding the introduction of the start your own business scheme; and if he will make a statement on the matter. [4668/14]

View answer

Written answers

As the Deputy is aware, I announced the Start Your Own Business initiative, which provides an exemption from Income Tax for individuals who have been unemployed for a period of 12 months and who start a new, un-incorporated business between 25 October 2013 and 31 December 2016.

An exemption from Income Tax will be provided on profits up to a maximum of €40,000 per annum for the first two years of trading. However, USC and PRSI will continue to be payable. If a loss is incurred then loss relief will be available in the normal manner.

The business must be un-incorporated i.e., it must not be registered as a company. In order to claim this relief, the individual must file a tax return notwithstanding that there may be no liability to tax.

This initiative is an employment activation measure that provides a much-needed incentive for people to start their own business and to reduce their dependence on welfare payments. Full details of the initiative can be found on the Revenue website at: http://www.revenue.ie/en/tax/it/reliefs/own-business-scheme/index.html.

Departmental Contracts

Questions (35)

Shane Ross

Question:

35. Deputy Shane Ross asked the Minister for Finance the way his departmental contracts for taxi companies for the purposes of taxis for the use of departmental staff are decided and allocated; if there is a public tender process for taxi companies wishing to apply for these contracts; the process for allocating the contracts; and if he will make a statement on the matter. [4644/14]

View answer

Written answers

In an effort to save costs, my Department introduced, in 2009, a policy whereby Staff requiring to use taxis are required pay for the taxi themselves and recoup the costs from the Department following presentation and approval of the receipt for the official trip undertaken. In addition staff were also requested to use public forms of transport including the air coach service where this is practical. This policy in respect of taxi usage has also been adopted by the Department of Public Expenditure and Reform.

In addition my Department and the Department of Public Expenditure and Reform maintains a long standing account with National Radio Cabs to provide certain services such as delivery of parcels and urgent mail across the city and in the case of the Department of Public Expenditure and Reform, transportation of test material to and from the CMO's Office. The Cost for this service in respect of both Departments in 2001 was €22k.

Should the Department seek to tender for Taxi Services in the future it will undertake the process in compliance with the procurement procedures.

Mortgage Resolution Processes

Questions (36, 37, 45)

Michael McGrath

Question:

36. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 196 of 21 January 2014, if sub-prime mortgages are subject to the mortgage arrears resolution targets process which will require institutions to have made offers of sustainable solutions to 75% of distressed borrowers by June of this year and concluded solutions in the 35% of cases; and if he will make a statement on the matter. [4675/14]

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Michael McGrath

Question:

37. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 196 of 21 January 2014, the number of sub-prime mortgages that have been restructured; and if he will make a statement on the matter. [4676/14]

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Michael McGrath

Question:

45. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 196 of 21 January 2014, the number of orders for repossession granted to sub-prime lenders in 2012 and 2013; the proportion this represents of all repossessions; and if he will make a statement on the matter. [4760/14]

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Written answers

I propose to take Questions Nos. 36, 37 and 45 together.

According to the Central Bank of Ireland, the Mortgage Arrears Resolution Targets (MART) were introduced, as a prudential policy measure, to set progressively more demanding quantitative targets for specified Credit Institutions to process mortgage arrears cases and achieve sustainable outcomes.

 The specified Credit Institutions to which the MART applies are:

- ACC;

- AIB;

- Bank of Ireland;

- KBC Bank Ireland;

- Permanent tsb;

- Ulster Bank.

The targets are set in relation to both Principal Dwelling Homes (PDH) and Buy to Let (BTL) mortgages and the above named institutions cover the vast majority of the mortgage book in Ireland, accounting for nine out of ten mortgages.

Retail credit lenders, which are not licensed to accept deposits such as sub-prime mortgage providers are not subject to the prudential standards set out in the MART. However, the same consumer protection framework applies to retail credit lenders as to other regulated lenders including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears ( CCMA ) and the Central Bank engages with these firms in relation to their treatment of borrowers under the mortgage arrears resolution process. In particular, the CCMA sets out requirements for all mortgage lenders, including retail credit firms, dealing with borrowers in arrears or pre-arrears on a mortgage secured on a primary home.  It provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long term resolution is sought by lenders with each of their co-operating borrowers.

The Central Bank has advised that for the sub-prime category of lender, there are 17,807 PDH accounts of which 4,341 have been restructured.  In addition, out of the 659 BTL mortgage accounts, the Central Bank has advised that 68 have been restructured.

The Central Bank has informed me that the number of orders of repossession for this category is not available at the moment but I will send this data to the Deputy as soon as it becomes available.

Mortgage Resolution Processes

Questions (38, 39)

Michael McGrath

Question:

38. Deputy Michael McGrath asked the Minister for Finance the number of Irish Bank Resolution Corporation residential and buy to let mortgages that have been restructured; the type of restructure by number; and if he will make a statement on the matter. [4677/14]

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Michael McGrath

Question:

39. Deputy Michael McGrath asked the Minister for Finance the reason the Irish Bank Resolution Corporation is not subject to the mortgage arrears resolution targets process; his plans to make them subject to MART; and if he will make a statement on the matter. [4678/14]

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Written answers

I propose to take Questions Nos. 38 and 39 together.

I have been advised by the Special Liquidators that Irish Bank Resolution Corporation Limited (in Special Liquidation) was not one of the Specified Credit Institutions as set out in the Mortgage Arrears Resolution Targets (MART) published by the Central Bank of Ireland in March 2013.  At the time the MART were published in March 2013 Irish Bank Resolution Corporation Limited was in Special Liquidation.

Irish Bank Resolution Corporation Limited (in Special Liquidation) has agreed specific targets with the CBI for Mortgage Arrears Resolutions. However they do not have the same obligations as the Specified Credit Institutions to make public disclosure of their performance against the targets.  The Special Liquidators will therefore not be disclosing the requested information.

I have been informed by the Special Liquidators that the residential mortgage customers of Irish Bank Resolution Corporation Limited (in Special Liquidation) continue to enjoy the protection of the Central Bank Code of Conduct on mortgage arrears and other protections in Irish consumer law.

Pension Levy

Questions (40)

Olivia Mitchell

Question:

40. Deputy Olivia Mitchell asked the Minister for Finance if he will consider making those with a pension fund of less than €300,000 a year which would have an approximate payment of €12,000 a year, similar to the non-contributory pension rate, exempt from paying the pension levy; and if he will make a statement on the matter. [4680/14]

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Written answers

I announced in my Budget 2014 speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I have however, introduced an additional levy on pension funds at 0.15% to, among other things, continue to help fund the Jobs Initiative. The additional levy, within the existing legal framework, will apply to pension fund assets in 2014 and 2015.

The chargeable persons for the pension fund levy are the trustees or other persons (including insurance companies) with responsibility for the management of the assets of the pension schemes or plans.

There are two exceptions to the requirement to pay the levy provided for in the governing legislation (section 125B of the Stamp Duties Consolidation Act 1999).

The first exception provides that the levy will not apply to the assets of occupational pension schemes in respect of employees whose employment is, or was, wholly exercised outside the State. In other words, the levy does not apply to the extent that a pension scheme is intended to provide retirement benefits to scheme members employed outside the State.

The second exception provides that the levy will not apply where the trustees of a scheme have passed a resolution to wind-up the scheme and where the business in respect of which the scheme was established is insolvent in accordance with the Protection of Employees (Employers' Insolvency) Act 1984.

The fact that there are very limited situations where the levy does not have to be paid explains, in part at least, why it was possible to introduce it at a relatively low rate of 0.6% in the first place and to have a rate of additional levy as low as 0.15% for the years 2014 and 2015. Making an exception for pension funds with a value of less than €300,000 will inevitably give rise to demands for exceptions to be granted in other situations that would be viewed by those seeking them as being equally deserving.  The inevitable result of this course of action would be a narrowing of the levy base which would result in a greater imposition on the non-exempt schemes and I am not prepared to go down that road.

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