Thursday, 10 Apr 2014

Written Answers Nos. 21-44

Civil Service Accountability

Questions (21)

Joe Higgins

Question:

21. Deputy Joe Higgins asked the Minister for Public Expenditure and Reform if he will report on the Civil Service accountability consultation process; and if he will make a statement on the matter. [16813/14]

Written answers

Minister for Public Expenditure and Reform (Deputy Brendan Howlin)

On 9 January last, I published a consultation paper on strengthening Civil Service accountability and performance.  The aim of this paper was to begin an extensive public consultation process on the key issue of who is accountable to whom and for what in the Civil Service.  I also established an Independent Panel on Strengthening Civil Service Accountability and Performance, chaired by Professor Kevin Rafter, Dublin City University, to manage and oversee this public consultation process, and review submissions received.  The deadline for receipt of submissions as part of this public consultation process was 31 March.  To date, I understand that 36 submissions have been received.  All submissions will be published on my Department's website in due course.

  The Independent Panel is currently reviewing the submissions received. Following on from this, and also from the Panel's own review and examination of relevant issues, the Panel will develop recommendations for my consideration by end May.  Further to these recommendations and those of the Civil Service Renewal Task Force relating to this area, I expect to bring proposals to Government for action to strengthen civil service accountability and performance.

Question No. 22 answered with Question No. 10.

Sale of State Assets

Questions (23)

Seán Fleming

Question:

23. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his views on whether value for money was achieved for the taxpayer in the sale of Bord Gáis; the time period over which the proceeds will be invested; his target for the number of jobs to be supported from the investment of the proceeds; and if he will make a statement on the matter. [16779/14]

Written answers

Minister for Public Expenditure and Reform

 As I have told this House on a number of occasions, in disposing of State assets, it is a primary concern of the Government that value is secured for the Exchequer and that fire sales are avoided.

In the case of the sale of Bord Gáis Energy, this position was underlined by the announcement that the Minister for Communications, Energy and Natural Resources and I made at end November that the bids received at that time did not fully reflect the inherent value and potential of the business, and that we were not prepared to agree to a sale at that price. When we took that decision, a number of commentators suggested that we had perhaps overvalued the business. However, I can confirm that throughout the process, both BGE and the Government received extensive and detailed valuation advice from financial advisers and our decision was based on this advice. 

The strong stance taken by the Government and our clear statement that we were not prepared to sell below acceptable value resulted in revised bids, which were materially better than those previously received. As a result, BGE was in a position to announce on 25th March that it had signed a definitive agreement to sell Bord Gáis Energy to a consortium comprising Brookfield, Centrica and iCon Infrastructure for an enterprise value of €1.1 billion.  

This  was the outcome of a competitive auction process, conducted in an open and transparent manner in which numerous international strategic and financial sponsor parties were invited to participate. In giving my consent to the transaction, I took account of the fact that the consortium made the highest bid and also of professional advice that this represented fair value for the Bord Gáis Energy business. Under EU rules on the sale of State assets, the core principle is that the assets to be sold must be sold to the highest bidder.

In relation to reinvestment of proceeds from the sale of State assets, €110m of the asset sale proceeds has already been factored into the budgetary figures for 2014. This is being used to meet upfront Exchequer costs associated with the new PPP programme and to fund the 2013 element of the €150m Exchequer stimulus package which I announced last year.  I have already indicated that additional capital investment has been authorised to deal with the flooding crisis and the determination of the amount of money available for further stimulus investment will be considered in this context.

 In addition, a review of the public capital programme, led by my Department, has recently commenced. This review will culminate in the setting of the Government's capital investment framework for the next five years. It is my intention that the use of further proceeds arising from the sale of assets over the course of the next few years will be considered as part of the review.   

The jobs impact of this investment is dependent on how the proceeds are reinvested. A 2009 survey, carried out by the Department of Finance, found that the labour intensity of capital projects generally falls within the range of 8 to 12 jobs for every €1 million invested. While this estimate for labour intensity is used as a general rule of thumb, the exact employment impact varies from project to project as different types of public construction project have different levels of labour intensity. For example, smaller scale projects tend to be more labour intensive than major national infrastructural projects. In order to get the maximum jobs impact from the reinvestment of proceeds the main focus will be on such small scale and labour intensive works.

Flood Risk Assessments

Questions (24)

Mick Wallace

Question:

24. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he will provide an update on the catchment flood risk assessment and management programme; and if he will make a statement on the matter. [16817/14]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works is currently undertaking the Catchment Flood Risk Assessment and Management (CFRAM) Programme, in partnership with its technical consultants, local authorities and other key stakeholders. The CFRAM Programme is being delivered through six comprehensive, catchment-based studies and is a strategic and fully co-ordinated approach that recognises the need, in line with international best practice, to move to a more sustainable, planned and risk-based approach to dealing with flooding problems. As well as delivering on national policy for flood risk management, the Programme will also meet the requirements of the EU ‘Floods’ Directive that came into force in November 2007.

The Programme, which is focused on 300 communities in areas of potentially significant risk including 90 coastal areas, lies at the core of the assessment of flood risk and the long-term planning of flood risk management measures throughout the country. The core outputs of the Programme will be a comprehensive suite of flood risk maps and a flood risk management plan for each area of potentially significant risk. The management plans will include a prioritised list of measures, both structural and non-structural, to address flood risk in an environmentally sustainable and cost effective manner. Structural measures in the plan will be taken to outline design stage.

The CFRAM Programme will be used to determine national priorities for State investment in flood defences, on a systematic and objective basis using Multi-Criteria Analysis that takes into account social and environmental factors as well as economic criteria. An OPW website, http://www.cfram.ie/, provides information on each area of the Programme and provides updates on the progress of the various studies being undertaken.

The CFRAM Programme is progressing through three phases. Stage one, the Preliminary Flood Risk Assessment, was completed in 2011. The current stage is the CFRAM Studies, including related topographic surveys and hydraulic river modelling. This core element of the Programme will run to 2015/16. The final stage is the Implementation and Review stage which is scheduled for 2016 and beyond and will be cyclical thereafter. Each stage of the CFRAM Programme includes a consultative process which facilitates both stakeholder and public participation.

The CFRAM Studies, commissioned in 2011 and early 2012, are progressing well, with all of the major survey contracts completed, with over 30 public consultation events held and all of the local authorities briefed on the Programme, and the detailed flood maps for the 300 communities now being produced. The CFRAM Programme involves the capture and generation of significant data sets that will be of use to other public bodies, such as in planning, infrastructure design, development of flood forecasting systems, etc. This in turn will create wider benefits to the State.

Government Procedure Instructions

Questions (25)

Seán Fleming

Question:

25. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he will extend the remit of the Office of Government Procurement to cover professional services on behalf of the State; and if he will make a statement on the matter. [16782/14]

Written answers

Minister for Public Expenditure and Reform

As you are aware, the Office of Government Procurement (OGP) has been established to centralise the procurement of common goods and services across the Public Service.  This move is in line with best practice in the public and private sector and is part of the continuing reform programme being driven by my Department.  The reform of Public Service procurement functions will deliver sustainable savings for the tax-payer and make a significant contribution to the deficit reduction programme.

To support the implementation of strategic cost reductions, the OGP have adopted a Category Council model.  There are sixteen Category Councils and each one will operate as a working group to address a particular category of spend across the Public Service.  The Councils are made up of representatives from across the Public Service to ensure broad involvement, particularly from those areas with significant spend.

  The role of each Category Council is to develop the category management strategy including policy setting, demand management, sourcing strategy and executive decision-making on strategic sourcing initiatives, including implementation and compliance measurement.

I am aware that the OGP have already established a Category Council for the procurement of Professional Services.  The total expenditure under this category is estimated at €700 million and includes areas of spend such as legal services, insurance and financial services.  The category will be defined by a range of services that will be prioritised for action based on expenditure, demand, and opportunities for savings. 

  Through the OGP, the Public Service will speak with one 'voice' to the market for services under this category of expenditure, eliminating duplication and taking advantage of the scale of public procurement to best effect.

The OGP is currently mobilising procurement staff from across the public service to fulfil its mandate. This public service wide recruitment campaign is planned to complete in early summer. This will provide the OGP the resources necessary to address the common categories of spend which it is targeting, including professional services.

Coastal Protection

Questions (26)

Martin Ferris

Question:

26. Deputy Martin Ferris asked the Minister for Public Expenditure and Reform the action he has taken to protect the coast of Ireland against land erosion due to storm damage; and his plans regarding same in view of the fact that 250 acres were lost in the last storms. [13207/14]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The investigation and addressing of coastal protection problems are matters for the Local Authorities concerned in the first instance. A Local Authority must assess any problems or high risk areas in the county and, if it is considered that specific measures and works are required, it is open to them to apply for funding to deal with coastal protection under the Office of Public Works' (OPW) Minor Flood Mitigation Works & Coastal Protection Scheme. All applications received under this scheme are assessed under the eligibility criteria, which include a requirement that any measures are cost beneficial, and having regard to the overall availability of funding. The OPW Minor Works Scheme has been of benefit to many Local Authorities in dealing with coastal protection problems since it was introduced in 2009. It is also open to Local Authorities to carry out flood mitigation and coastal protection works using their own resources.

Coastal erosion is a natural and ongoing process and needs to be considered in a holistic way as its impact can vary greatly in different locations and over time. It only becomes a problem when it threatens human life, infrastructure and properties. The primary objective of Government policy on coastal protection is to ensure that in areas identified as being at greatest risk of damage or loss to economic assets through coastal erosion or flooding, appropriate and sustainable measures are identified by Local Authorities to protect those assets and, where such measures are economically justified on cost benefit grounds and compatible with all required environmental and other statutory requirements, they are implemented subject to the availability of resources.

The Irish Coastal Protection Strategy Study (ICPSS) has surveyed and assessed the coastal erosion risk along the entire national coastline and this information is available to all Local Authorities to enable them to develop appropriate plans and strategies for the sustainable management of the coastline in their counties including the identification, prioritisation and, subject to the availability of resources, the implementation of coastal protection works both of a structural and non-structural nature.

Flood Risk Assessments

Questions (27)

Maureen O'Sullivan

Question:

27. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform if at the Office of Public Works flood risk management conference being held next week, he will relay the points made by public attendees and community stakeholders, to flood insurance companies in any future negotiations between the Government and those companies in order that the full impact flooding has had on communities will be communicated directly to them; and if he will make a statement on the matter. [16810/14]

Written answers

Minister of State at the Department of Public Expenditure and Reform

Insurance Ireland, the representative organisation for the insurance industry, will be in attendance at the OPW Flood Risk Management Conference in Dublin Castle on 10th April 2010. A speaker from Insurance Ireland will be giving a presentation at the conference. There will be a Question and Answer period after each session of the conference and this time will afford delegates the opportunity to make a point or to ask a question regarding insurance or any other relevant flood-related topic directly to the Insurance Ireland representatives and other speakers.

The aims of the Conference are to allow the public and interested stakeholders the opportunity to participate in a public policy debate on flood risk management in Ireland; to examine the background to and impacts of the recent severe weather and flooding; to set out the role of OPW and other organisations in the management of flood risk; to outline work undertaken to date and future plans; and to discuss national priorities and public funding in relation to this issue.

I understand that there are several community and action groups, representing areas that have been affected by flooding, already registered to attend the conference and I look forward to a constructive and productive debate on all flood risk management issues.

On the 24 March 2014 details of a Memorandum of Understanding (MoU) between the Office of Public Works and Insurance Ireland on the exchange of information on flood defence works were announced by the Minister of State, at the OPW, Mr Brian Hayes, TD and the Chief Executive of Insurance Ireland, Mr. Kevin Thompson. This Memorandum of Understanding outlines the principles of agreement between the OPW and Insurance Ireland on the information being provided and how it will be used by the insurance industry. The Office of Public Works will provide Insurance Ireland with data on all completed OPW flood defence schemes which will show the design, extent and nature of the protections offered by these works. Insurance Ireland members will then take into account all information provided by the OPW when assessing exposure to flood risk within these areas from 1 June 2014.

I feel that this is an important step forward for people in areas where flood defences have been provided by OPW, as OPW and Insurance Ireland are now working together to ensure that the flood defence works undertaken in recent years are being taken into account by the insurance industry. There has been a substantial investment of €320 million by the State in all parts of the country on flood relief works since 1995, with over 10,500 properties protected and benefits estimated at more than €1 billion in damage and losses avoided. It is important that the benefits of that investment are felt by all members of those communities.

The OPW has to date provided information on 12 completed flood relief schemes in an agreed format to Insurance Ireland and I now expect to see that, in these protected areas, the insurance industry recognises this significant capital investment on behalf of the taxpayer, and insures properties benefiting from that investment. My Office will continue to work with Insurance Ireland on the ongoing exchange of information on these schemes as they are completed and I am confident that this will lead to a greater availability of insurance to those who currently find it difficult to get.

Sale of State Assets

Questions (28)

Jonathan O'Brien

Question:

28. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform if he will report on the investment of proceeds from the sale of the national lottery in the development of the new national children's hospital; and if he will make a statement on the matter. [16774/14]

Written answers

Minister for Public Expenditure and Reform

In February of this year, I granted the next licence to operate the National Lottery to Premier Lotteries Ireland delivering €405 million to the Irish citizen. As I announced in Budget 2014, half of the proceeds from the Lottery licence transaction will be used to help fund a number of job rich projects across the country. These include the Wild Atlantic Way Driving Route, 1916 Commemoration Projects and a new National Indoor Training Arena at the National Sport Campus, amongst others.

The other half of the proceeds, which will be received in a second instalment towards the end of the year, will be ringfenced and used to help fund the construction of the new National Children's Hospital - the largest, most complex and significant capital investment project ever undertaken in healthcare in Ireland.

The National Paediatric Hospital Development Board is responsible for this priority capital project, and is focused on delivering the new hospital on schedule, to optimal design and value for money. While it is too soon to say exactly when the Lottery Licence proceeds earmarked for this project will be required, it is expected that it would be during the construction phase which will commence in August 2015.

Legislative Programme

Questions (29, 31)

Seán Fleming

Question:

29. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his plans to reform the system of lobbying of Ministers and Department officials; and if he will make a statement on the matter. [16781/14]

Jonathan O'Brien

Question:

31. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform the position regarding the Regulation of Lobbying Bill; and if he will make a statement on the matter. [16776/14]

Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 29 and 31 together.

Significant progress is being made in relation to this Government's programme of political and legislative reform aimed at enhancing openness and transparency.  The Regulation of Lobbying Bill will form an integral part of this programme. 

 The decision to proceed with the Regulation of Lobbying Bill 2014 marked a significant step in bringing greater openness to the important process of interaction between the political and administrative systems and all sectors of society who seek to influence specific policy, legislative matters or prospective decisions.  The legislative proposals draw on the outcome of a wide and comprehensive public consultation process and have been guided by research into lobbying regulation in other jurisdictions. My Department's Policy Paper and the submissions received from the consulation process are available at http://www.per.gov.ie.

  The fundamental objective of this initiative is to provide appropriate transparency on "who is lobbying whom about what".  This will allow the wider population to reach informed evidence-based judgments regarding the extent to which different interest groups are able to access and seek to influence decision-making and ease public concerns that lobbying 'behind closed doors' overrides the interests of the community as a whole. The proposals also put in place a system for regulating lobbying where former public officials might seek to lobby the public body or the people they previously worked with for a one-year period after they have left public employment (i.e. 'cooling-off' period).

The General Scheme of the Bill was submitted for pre-legislative scrutiny by the Finance, Public Expenditure and Reform Committee and their report has been received.  Drafting of the Bill by the Office of the Parliamentary Counsel is advancing and it is anticipated that the Bill will be published in quarter 2 of 2014.   It is expected that the passage of the Bill through the Houses will be substantially progressed by the summer recess. 

Following publication it is intended to establish an Advisory Group composed of relevant experts and key stakeholders who will be in a position to provide information and guidance that will assist in the smooth implementation of the legislation.  A period of time will be required prior to commencement of the legislation to enable development of the IT and information systems which will support the registration process. The timeframe for the regulatory provisions of the Bill to come into operation will depend, in the first instance, on the timeframe for the enactment of the Bill by the Oireachtas following Government approval for its publication.    

By regulating lobbying activity through registration and reporting requirements public confidence in politics and in the business of government can be strengthened and greater transparency can be achieved regarding the process of public policy making.

External Service Delivery

Questions (30)

Michael McGrath

Question:

30. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform his views on the impact of outsourcing on the delivery of public services; and if he will make a statement on the matter. [16786/14]

Written answers

Minister for Public Expenditure and Reform

The Government is committed to exploring alternative service delivery models including outsourcing, as part of an overall objective to reduce costs and improve customer services. This is a key component of the new Public Service Reform Plan 2014-2016, published in January 2014. There has already been considerable progress made in this area, as outlined in the Second Progress Report on the Public Service Reform Plan, also published in January.

  In July 2012, the Government agreed on a number of actions concerning External Service Delivery (ESD). These aim to develop a focused and integrated approach to the external delivery of non-core processes, with the objective of reducing costs and focusing staff resources on priority areas.

  The Reform agenda is focused on delivering better outcomes for citizens using public services. Hence, the Government is considering alternative delivery models that can improve the quality and efficiency of these services, while ensuring that they remain affordable and sustainable. Some services are more suited to external delivery than others and any decision to change how a service is delivered will take into account a number of factors, including the overall cost, quality of service, effectiveness and public interest.

The implementation of ESD has already proved very beneficial, in terms of increased efficiency, reduced costs and overall improvements in customer service. There are many other potential benefits to ESD, including gaining competitive advantage and the introduction of new technologies. Successful examples of ESD include the administration of the new Driver Licence by the Road Safety Authority, and the administration of personal injuries assessments by the Injuries Board.

  My Department is also committed to the upskilling of Public Servants in this area. A number of training programmes, workshops and seminars have been held, and a range of materials to provide guidance and support have been published. 

Question No. 31 answered with Question No. 29.

Public Sector Pensions

Questions (32)

Seán Fleming

Question:

32. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he will engage with retired public servants in relation to the impact of cuts to their income from the implementation of the Haddington Road agreement; and if he will make a statement on the matter. [16780/14]

Written answers

Minister for Public Expenditure and Reform

For public service pensions coming into payment from 29 February 2012, the Financial Emergency Measures in the Public Interest Act 2013 which provided for pay reductions for public servants receiving annualised remuneration of €65,000 under the Haddington Road Agreement, also provided for Public Service Pension Reduction rates ranging from 2% to 8%  to be applied to annual public service pensions in payment in excess of €32,500 from 1 July 2013.  

I have individually engaged with retired public servants on the impact of the Public Service Pension Reductions on their income and also met representatives in May 2013 who were seeking to represent their views on a collective basis.   I indicated at that time that it was my intention as a matter of priority to move towards reducing the burden of public service pension reductions, with the initial focus on the people in receipt of low pensions, at the earliest date economic progress permits.

Recent correspondence from the Alliance of Retired Public Servants has confirmed the establishment of a formal alliance open to all public service pension organisations. I would intend that engagement would continue between officials of my Department and representatives of the Alliance on the specific matters that concern them.     

UK Referendum on EU Membership

Questions (33)

Seamus Kirk

Question:

33. Deputy Seamus Kirk asked the Tánaiste and Minister for Foreign Affairs and Trade if a contingency plan has been initiated by his Department in the event of a negative referendum result in the UK on EU membership; and if he will make a statement on the matter. [17019/14]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The outcome of the domestic British debate on the EU could have very significant implications for Ireland, and I have of course been closely following developments. No decision has yet been taken on the holding of a referendum, and it seems unlikely that the question of holding a referendum will become clear until after the next UK general election.I have the honour of accompanying President Higgins on the current historic State Visit to the UK, a visit which highlights again the extraordinary breadth and depth of the excellent relations between our two countries. The contribution of our common membership of the EU, where we have so frequently shared interests over the years, to the development of that relationship is important.

I have made clear on numerous occasions my belief that the UK is better off within the European Union, and that the Union benefits hugely from British membership. The UK is Ireland’s nearest neighbour and largest trading partner. For very many reasons, it is clearly in Ireland’s interest for the UK to remain in the European Union. The Government will continue to monitor the situation closely.

Tax Credits

Questions (34)

Michael Healy-Rae

Question:

34. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the abolition of tax credits for single parents; and if he will make a statement on the matter. [17114/14]

Written answers

Minister for Finance

I would like to assure the Deputy that tax credits for single parents have not been abolished. However, the One-Parent Family Tax Credit has been restructured and replaced with a new Single Person Child Carer Credit from 1 January 2014. The new credit is more targeted, in that it is in the first instance, only available to the principal carer of the child.

Given the difficult fiscal environment, it is essential to review all tax reliefs, credits and incentives in order to ensure that they are properly targeted and if necessary re-focused in order that they can achieve the socio-economic objectives that are set for them.  A system that allows multiple claims in respect of the same child or children is unsustainable.

There is no specific tax credit for children in the tax code. Therefore, married or cohabiting couples are unable to avail of any additional credit to assist them in the financial maintenance of their children.  In certain cases, such couples also need to maintain two households due to the location of employment, for example.

It is the responsibility of the parents to look after a child, including financially.  The new credit is targeted to assist principal child carers to take up, or remain in employment.

Notwithstanding the above, as a result of an amendment which I brought forward at Committee Stage of the Finance Bill, a primary carer who is entitled to the credit and who does not wish to avail of it can choose to surrender it.  A secondary carer may then make a claim for the credit, provided that the qualifying child resides with him or her for not less than 100 days in the tax year.

It should be noted that where a primary carer is married, in a civil partnership or cohabiting they would not be entitled to the new credit (or indeed the former one). In such circumstances the primary carer cannot relinquish the credit to a secondary carer. In addition, a secondary carer who is married, in a civil partnership or cohabiting, would not be entitled to the new credit (or indeed the former one) regardless of the marital status of the primary carer.

The maximum potential loss to an individual who is not entitled to the restructured credit, and who has income greatly in excess of the average industrial wage, is €48 per week. For someone on the average industrial wage, estimated at €32,450, the loss would be approximately €31 per week.

Given that this measure was only approved by the Oireachtas and enacted in Finance (No. 2) Act 2013 in late December, I have no immediate plans to review the legislation.   

IBRC Mortgage Loan Book

Questions (35, 36, 37)

Pearse Doherty

Question:

35. Deputy Pearse Doherty asked the Minister for Finance the number of persons to date that have been able to buy back their own mortgages from the Irish Bank Resolution Corporation during the special liquidation process; and if he will make a statement on the matter. [17018/14]

Michael McGrath

Question:

36. Deputy Michael McGrath asked the Minister for Finance the number of Irish Bank Resolution Corporation residential mortgages sold by the special liquidator; the number that will transfer to the National Asset Management Agency; the number of mortgages transferring to NAMA that are in arrears; his plans for further sales; and if he will make a statement on the matter. [17046/14]

Michael McGrath

Question:

37. Deputy Michael McGrath asked the Minister for Finance the number of Irish Bank Resolution Corporation buy-to-let mortgages sold by the special liquidator; the number that will transfer to the National Asset Management Agency; the number of mortgages transferring to NAMA that are in arrears; his plans for further sales; and if he will make a statement on the matter. [17047/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 35 to 37, inclusive, together.

I am advised by the Special Liquidators that residential mortgage holders can redeem their loans at par at any time. I am further advised that between the 1st February 2013 (the Special Liquidators were appointed on 6 February 2013) and the 31st March 2014, approximately 600 mortgage accounts have been closed as a result of full redemption by these customers.

I have been advised by the Special Liquidators that 64% of the par value (€1.8bn) of the Sand Portfolio has been sold to third parties, equating to c. 6,200 loans. C. 4,500 of these loan accounts relate to a customer's Principal Dwelling House (PDH) and c. 1,700 of these loan accounts relate to buy to let mortgages. It is expected that the remaining loans (c. 6,500) comprising c. 6,200 PDH loan accounts and c.300 accounts relating to buy to lets, will transfer to NAMA at the independent valuation price. As the Deputy will be aware the Special Liquidators took the decision to sell the residential mortgage books as large portfolios as they were advised that this was a more efficient method of disposal and the one most likely to give best results in terms of the ultimate sales by the special liquidator, having regard to the public interest.

The Special Liquidators are unable at this stage to provide a breakdown of the number of accounts that are in arrears or that are expected to transfer to NAMA. However, they will be writing to residential mortgage holders shortly, to provide information on the outcome of the sales process and how it has affected their loan(s). 

Further information for mortgage holders is also available on the IBRC website at - http://www.ibrc.ie.

IBRC Mortgage Loan Book

Questions (38, 39)

Michael McGrath

Question:

38. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency has adequate processes and procedures in place to deal with the Irish Bank Resolution Corporation mortgages transferred to it; the number of staff who will support this work; and if he will make a statement on the matter. [17048/14]

Michael McGrath

Question:

39. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency board has considered the way mortgage holders from the Irish Bank Resolution Corporation will be treated in relation to the code of conduct on mortgage arrears; and if he will make a statement on the matter. [17049/14]

Written answers

Minister for Finance

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

No final decision has been made as to the number of IBRC residential loans that NAMA may acquire from the Special Liquidators (SLs).  However as previously advised, NAMA has made appropriate preparations, including the selection of Pepper Asset Servicing (Pepper) through a competitive tendering process as its preferred bidder to provide primary and special servicing on any loans that may be acquired.  

Should NAMA acquire part of the IBRC mortgage portfolio, the bulk of the requisite staffing resources to manage the loans will be provided by Pepper.  Pepper's services will be carried out under delegated authority and close oversight from NAMA; the resourcing implications for NAMA, in terms of such oversight, will depend on the volume of loans which may transfer. Furthermore NAMA advises me they have the necessary expertise to oversee the service provider.

In the event that NAMA ultimately acquire mortgage loans from the Special Liquidators to IBRC, the NAMA Board will determine its strategy at that stage and, in doing so, will be mindful of its legal obligations and of general market norms. 

I am advised that NAMA will apply best practice in this regard including CCMA to ensure that a borrower's legal position does not deteriorate by virtue of NAMA acquisition of the loan or loans concerned.   

IMF Loan

Questions (40, 41)

Dominic Hannigan

Question:

40. Deputy Dominic Hannigan asked the Minister for Finance if his Department has looked into the possibility of repaying the IMF loans early to further bring down the cost of borrowing for the State; the impact this would have on the long-term debt plan for the country; if any discussion has been had with the EFSF or the Commission regarding the possibility of paying back the IMF loans quicker without having to pay back equal amounts to the EFSF or ESM; and if he will make a statement on the matter. [17070/14]

Dominic Hannigan

Question:

41. Deputy Dominic Hannigan asked the Minister for Finance if his Department had talks with the either the IMF, Commission or ECB regarding the possibility of renegotiating the clause in the original troika deal whereby any repayment of loans from either the EU or IMF would mean a proportionate repayment of the other bailout loans; and if he will make a statement on the matter. [17071/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 40 and 41 together.

As I have previously outlined in my replies to PQs 178 (6839/14) of 11 February 2014 and 21 (16171/14) of 8 April 2014, the question of early repayment of any one lender cannot be treated in isolation from other lenders and market expectations for when programme loans are due to be repaid. The early repayment of IMF funds would trigger automatic mandatory proportional early repayments to the EFSF, EFSM, United Kingdom, Kingdom of Sweden and Kingdom of Denmark. This would also apply in respect of the early repayment of the loans from any of the other programme funding partners.

The impact of early repayment of our IMF loans on our bond yields would need to be carefully considered were such a possibility to arise. Should that possibility arise, I would take the advice of the NTMA on this matter. If such a proposal were to be pursued, the agreement of the other lenders would of course be required.

 The provisions in question are included in the loan agreements with the EFSF, EFSM and the UK, Sweden and Denmark, as was set out in my reply to PQ 6839/14 of 11 February 2014. 

As I have outlined previously, the matter of early repayment of our IMF loans, and thus requesting agreement to repay Ireland's IMF loans prior to the maturity dates, does not arise at the moment but we will keep it under review. In view of this, the issue of discussions with the EFSF, EFSM and the bilateral lenders regarding such early repayment also does not arise.

I should also point out that, as the IMF loans have a shorter average maturity, they will be repaid considerably in advance of the EFSF and EFSM loans for which we negotiated maturity extensions.

Dormant Accounts Fund Administration

Questions (42)

Clare Daly

Question:

42. Deputy Clare Daly asked the Minister for Finance his views regarding the fact that a number of financial institutions namely EBS, AIB and BOI are freezing customers' accounts and counting them as dormant when there are no withdrawals taking place even though a number of citizens have been using those accounts to make regular lodgements as a savings account; and if this practice is lawful in view of the upset it has caused to a number of customers. [17082/14]

Written answers

Minister for Finance

The relevant institutions have provided me with the following details regarding classifying accounts as dormant, however if the Deputy wishes to forward some further specific information about problems that she is aware of, I would be happy to investigate the matter further.

AIB including EBS

AIB is committed to reuniting customers with their lost or forgotten accounts (also known as  dormant accounts). The bank can confirm that an account is designated as being a dormant account where on the 30 September there has been no customer initiated transactions in the previous 15 years. The account holder has until the 31 March of the following year to reactivate the account by contacting AIB and carrying out a transaction on the account. After the 31 March the funds are transferred to the Dormant Accounts Fund.

Under the Dormant Accounts Act, 2001, the money held in designated dormant accounts is then transferred to a Fund administered by the National Treasury Management Agency (NTMA) which will manage the funds on behalf of the State. The Dormant Accounts Fund Disbursements Board will distribute the funds to programmes designed to assist the personal, educational and social development of people who are economically, educationally or socially disadvantaged; to people with a disability; and to projects that are designed to assist primary school students with learning disabilities.

The transfer to the fund does not affect the rights of the original account holder (or their heirs) and they can reclaim their funds at any time by contacting AIB.

Bank of Ireland

Bank of Ireland operates all customer accounts in compliance with their Terms & Conditions and provisions of relevant legislation / regulation.

Dormant Accounts are only deemed to be Dormant where no customer initiated transaction has taken place for 15 years and the funds have been transferred to the National Treasury Management Agency (NTMA).  Accounts that have not had a customer initiated transaction for a period from 3 to 15 years are defined as "Inactive Accounts".  Accounts in this category are re-activated once the account-holder has confirmed his/her identity.    

Carbon Tax Yield

Questions (43)

Michael McGrath

Question:

43. Deputy Michael McGrath asked the Minister for Finance the yield from carbon tax on solid fuel in 2013; the projected yield for carbon from solid fuel in 2014; the additional revenue that will be raised from increasing the tax on solid fuel from 1 May 2014 in the current and in a full year; and if he will make a statement on the matter. [17244/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the provisional yield for 2013 from Carbon Tax on solid fuel (introduced with effect from 1 May 2013) was €7.3m.

  The projected yield for 2014 is €21.5m, this includes the additional yield from the higher rates that come into effect from 1 May 2014, which are estimated to yield €7.2m in the current year and €14.4m in a full year.

SOLAS Training and Education Programmes Provision

Questions (44)

Pearse Doherty

Question:

44. Deputy Pearse Doherty asked the Minister for Education and Skills the procedures in place whereby a person enrolled on a SOLAS course requires time off for a family emergency; and if he will make a statement on the matter. [17258/14]

Written answers

Minister for Education and Skills

This is a day to day operational matter for SOLAS. I have asked SOLAS to contact the Deputy directly to set out these procedures.