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Wednesday, 16 Apr 2014

Written Answers Nos. 39-45

Money Advice and Budgeting Service

Questions (39)

Seán Kyne

Question:

39. Deputy Seán Kyne asked the Minister for Social Protection in view of the vital work which the Money Advice and Budgeting Service carries out if there is scope to extend the presence of the service to new areas such as Clifden for the north Connemara area; the take-up of the service over the past three years; the work undertaken to minimise waiting periods; and if she will make a statement on the matter. [17690/14]

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Written answers

The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board (CIB), assists people who are over-indebted and need help and advice in coping with debt problems, in particular those on low incomes and people living on social welfare payments. In 2014, the Citizens Information Board has been allocated a budget of approximately €46 million of which some €18.6 million has been assigned to MABS. The Money Advice and Budgeting Service is made up of a network of 53 companies, which includes 51 local companies and 2 national companies MABS National Development Limited and National Traveller MABS. In addition, the MABS National Telephone Helpline is available from 9am to 8pm Monday to Friday and the MABS website can be accessed 24 hours a day at www.mabs.ie.

South Galway Money Advice and Budgeting Service has its main office in Galway City and covers a geographic area which includes Clifden. There are also two sub offices, one in Loughrea and one in An Cheathrú Rua which was opened in 2012.

New client numbers have not changed significantly over the past three years (see chart). The number of new clients presenting to the service in Q1 2014 was 189.

2011

2012

2013

953

955

957

The average waiting time for South Galway MABS at the end of March 2014 was 4 weeks, which is just over the national average of 3.4 weeks. This has reduced from a 6 week waiting time at end December 2013.

CIB has been working closely with South Galway MABS to reduce the waiting times for clients. Clients are issued with notification of their first appointment immediately following an assessment stage, or within five working days. There is ongoing contact with clients who are awaiting face to face appointments, including call-back and helpline support and the use of self-help material. The services of a part time Resource Money Adviser (RMA) located in the Loughrea office were also deployed to assist in the reduction of waiting times.

MABS also sees emergency clients immediately, without any waiting period. To end March, 2014 South Galway MABS dealt with 27 such clients.

There are no immediate plans to expand MABS services in South Galway, particularly in the context of the current budgetary constraints. CIB will continue to work closely with MABS local management to ensure that client needs are met.

Question No. 40 answered with Question No. 13.

Youth Guarantee

Questions (41)

Willie O'Dea

Question:

41. Deputy Willie O'Dea asked the Minister for Social Protection the number of training or education places that have been set aside this year for young persons who are out of work as part of the Youth Guarantee; the current number of young persons who qualify for the Youth Guarantee scheme at this time; the ratio of her Department case officers to the number of unemployed persons currently; and if she will make a statement on the matter. [17735/14]

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Written answers

The objective of the Irish implementation plan for the Youth Guarantee is to ensure that young people receive a quality offer of assistance within four months of becoming unemployed. This objective is to be achieved over time by enhancing the Intreo engagement with newly unemployed young people, and by maintaining and developing the current range of education, training and employment interventions for young people. It will also be supported by the recovery in the economy, which has seen employment grow by 61,000 over the last year, and youth unemployment fall from a peak of over 80,000 in early 2009 to an estimated 54,000 at present (Eurostat estimate for February 2014, seasonally adjusted) Based on current planned provision, the estimated uptake of programme places by young people in 2014 is set out in detail in the table below.

#

#

#

Expected participation, activation programmes, 2014

Programme

Average participation

Inflow of new participants

Expected inflow

of young people

Youthreach/CTC

6,000

3,300

3,300

JobBridge (including planned reserve)

7,700

13,300

5,000

Tus

7,500

7,500

1,000

JobsPlus

4,000

2,000

1,500

Momentum

6,500

6,500

2,000

BTEA (excl Momentum)

18,500

9,300

3,300

BTWEA

11,000

5,500

200

VTOS

5,600

2,800

500

FAS/Solas

10,300

25,000

9,500

CEB youth Entrepreneurship Training and Mentoring supports

#

700

700

CEB/MFI micro-loans for young people

#

150

150

International Work Experience and Training

250

250

250

Gateway

3,000

3,000

450

Community Employment

25,300

12,700

500

Total

105,650

92,000

28,350

PLCs

Apprenticeship

35,000

8,000

32,000

2,500

22,000

2,000

Vocational Third Level

#

#

It is estimated that at least 50% of the 41,000 entrants to third level each year are entering courses leading towards defined occupations

While the resources under the Youth Guarantee are targeted more towards those with the highest risk of becoming long-term unemployed, all young people signing on enter the engagement process (via Group Engagement sessions) within the first two weeks of signing on. Effectively, therefore, all persons under the age of 25 who become unemployed and join the Live Register represent the target group at whom policies developed under the Guarantee are aimed.

Given the range of programmes and approaches envisaged under the implementation plan, it is not possible, at any given time, to identify a specific group of young people as being qualified for the guarantee. However, the published implementation plan notes that in 2012 some 56,000 young people joined the Live Register as wholly unemployed, and some 35,000 (63%) of these remained unemployed for four months or more. The target of the guarantee approach will be to lead to a significant reduction in this number over time. The number of staff deployed on front-line case work duties was doubled in the last quarter of 2013 from approximately 300 to about 600. This allocation of staff is being facilitated by significant process and organisational changes within the Department of Social Protection, and is leading to an increase in the caseworker/client ratio from about 1:800 to about 1:400. The introduction of JobPath, commencing later in 2014, will further improve this ratio to 1:200.

Question No. 42 answered with Question No. 26.

Missing Persons

Questions (43)

Terence Flanagan

Question:

43. Deputy Terence Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide an update on investigations taking place into the case of a person (details supplied); and if he will make a statement on the matter. [18188/14]

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Written answers

I refer the Deputy to the answer provided to PQ 6086/14 on 6 February 2014. There has been no update provided to my Department on the investigations into the case of the person referred to by the Deputy since that time. As advised, information exchange between Ireland and Spain on any investigation issues in this case should be on a police-to-police level.

Consultancy Contracts Expenditure

Questions (44)

Pearse Doherty

Question:

44. Deputy Pearse Doherty asked the Minister for Finance the amount that was paid to consultants (details supplied) to research possible changes to the tax treatment of pensions; the length of time their consultancy ran; and if their and the tax policy pensions group claimed savings of €400 million in a full year, to be achieved through changing the tax treatment of private pensions in ways that would affect 27,000 individuals, are still expected to deliver €400 million after closer scrutiny of the proposal. [18123/14]

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Written answers

I understand that the consultants referred to by the Deputy were engaged by the Taxation Policy (Pensions) Group (TPPG) which is essentially an umbrella group representing the Irish Association of Pension Funds, Insurance Ireland and the Society of Actuaries of Ireland. As they were not engaged by my Department, I am not in a position to comment on how much they were paid to research possible changes to the tax treatment of pensions or the duration of any consultancy in this regard. Nor would it be appropriate for me to do so.

The Standard Fund Threshold (SFT) is the maximum allowable pension fund at retirement for tax purposes. I received proposals in late 2012 from the TPPG for changes to the SFT regime, as an alternative to standard rating of pension tax relief, which it was claimed would yield savings and tax revenues in the region of €400 million.

I announced in Budget 2013 that changes would be put in place in 2014 to the SFT together with other possible changes to give effect to the commitment in the Programme for Government to cap taxpayers subsidies for pension schemes which deliver pension income of more than €60,000 per annum. At that time and pending further analysis of the TPPG proposals, I included a much lower savings figure of €250 million in the Budget 2013 arithmetic. That analysis ultimately revealed significant downside risks to the achievement of even this lower level of yield or savings.

The estimate of the yield from the changes to the SFT regime which I actually announced in Budget 2014 and provided for in Finance (No. 2) Act 2013 is €120 million. These changes differ in some respects from those proposed by the TPPG; for example the introduction of age-related valuation factors for the purposes of placing a capital value on Defined Benefit pension rights for SFT purposes which vary with the age at which the pensions are drawn down, thereby improving equity within the regime. They also reflect the requirement, on legal advice, to protect pension rights already accrued at the date of change (i.e. 1 January 2014).

Mortgage Resolution Processes

Questions (45)

Stephen Donnelly

Question:

45. Deputy Stephen S. Donnelly asked the Minister for Finance in respect of the recent sale of mortgages by Certus-Bank of Scotland to Tanager, if these mortgages will be covered by the code of conduct on mortgage arrears; if Tanager will be subject to the Government's targets on offering sustainable solutions to mortgage holders in arrears of 90 days or more; and if he will make a statement on the matter. [18177/14]

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Written answers

Bank of Scotland plc is authorised in the UK and is providing services into Ireland on a cross border basis. The Code of Conduct on Mortgage Arrears (CCMA) applies to the mortgage lending activities of all regulated entities, except credit unions, operating in the State, including, inter alia, a financial services provider authorised, registered or licensed in another EU or EEA Member State and which has provided, or is providing, mortgage lending activities in the State.

Tanager Ltd is not a regulated financial service provider.

In March 2013 the Central Bank published the Mortgage Arrears Resolution Targets (MART) framework, which set out performance targets for mortgage arrears resolution at six Irish mortgage lenders. The six lenders, Allied Irish Banks, Bank of Ireland, Permanent tsb, Ulster Bank, ACC Bank and KBC Bank are required to meet targets at quarterly intervals. The mortgage arrears resolution targets cover both proposed and concluded sustainable solutions, with respect to the lenders 'Republic of Ireland principal dwelling home / primary residence ('PDH') and buy-to-let ('BTL') mortgagees.

The Central Bank has informed me that Tanager Ltd is not one of the six lenders subject to MART.

However, Tanager Ltd has indicated clearly that it intends to voluntarily adopt the Code of Conduct on Mortgage Arrears (CCMA) to manage the acquired loans as it believes following the CCMA is in the best interests of all and forms part of its core strategy.

A number of the purchasers of mortgage loan books are abiding by the Central Bank Code of Conduct on Mortgage Arrears on a voluntary basis. I accept that this is not the same as the consumer having the right to the free service provided by the Financial Services Ombudsman; such a consumer would have recourse to the Courts in the usual manner. However, voluntary adherence to the Code seems to be in the interests of both the consumer and the purchasing entity.

In March 2014 the Government affirmed its commitment to bringing forward legislation to protect consumers whose mortgages are sold to unregulated entities. The Department of Finance recently sent draft heads of the legislation to the Central Bank for its consideration in advance of more detailed engagement with the Attorney General's office. I do not consider it appropriate to discuss the details of these draft heads because we are at a very preliminary stage and the heads have not been cleared from a legal viewpoint. However, I can assure you that we are committed to bringing forward this legislation.

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