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Tuesday, 24 Jun 2014

Written Answers Nos. 247-267

Microenterprise Loan Fund Applications

Questions (247)

James Bannon

Question:

247. Deputy James Bannon asked the Minister for Jobs, Enterprise and Innovation the number of small businesses in County Longford that have availed of the microfinance scheme for small business since it was set up in 2012; the total numbers and amounts of loans approved; and if he will make a statement on the matter. [26706/14]

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Written answers

Since Microfinance Ireland was launched in October 2012, 8 applications have been received from businesses in County Longford. To date one application has been approved to the value of €15,000, 2 applications are still “work in progress” and 5 applications have been declined. My Department publishes quarterly reports on the progress of MFI on the Department’s website www.enterprise.gov.ie and the progress report detailing the analysis and performance for the quarterly period ending 31 March 2014 is available there.

Corporate Governance

Questions (248)

Dara Calleary

Question:

248. Deputy Dara Calleary asked the Minister for Jobs, Enterprise and Innovation the number of persons who currently are precluded from serving as company directors on foot of a direction from the Office of the Director of Corporate Enforcement; and if he will make a statement on the matter. [26714/14]

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Written answers

The Director of Corporate Enforcement has no power to disqualify persons from acting as company directors. The Director may make an application to the High Court for a disqualification order but it is ultimately a matter for the Court to decide on whether to grant such an order.

The Office of the Director of Corporate Enforcement (ODCE) does not maintain records of the number of persons who are currently disqualified from serving as company directors, either on foot of ODCE applications or otherwise. However in its Annual Report each year, the ODCE publishes details of all disqualification orders made by the High Court in respect of civil and criminal cases taken by the Office. These reports are available on the ODCE website at www.odce.ie.

The Companies Registration Office maintains a register of persons that have been disqualified and whose disqualification has been notified to the Office. At the end of 2012 there were 3,908 persons registered as disqualified including persons who were automatically disqualified. Disqualification is automatic in circumstances including:

- where a person is convicted on indictment of any indictable offence in relation to a company or involving fraud or dishonesty;

- where a person fails to notify the Registrar of Companies on appointment as a director that they have been disqualified in another State or makes a false or misleading statement in this regard; and

- where a person is convicted of acting as auditor, liquidator or examiner of, or in the formation, promotion or management of, any company while an undischarged bankrupt.

The Court has the discretion to disqualify a person for such period as it deems fit where that person, while acting as director, promoter, auditor, officer, receiver, liquidator, or examiner of a company has been guilty of certain offences including:

- a fraud in relation to the company, its members or creditors;

- a breach of duty in relation to the company; and

- conduct which makes them unfit to be concerned with the management of a company or fraudulent or reckless trading which resulted in a declaration of personal liability for some or all of the debts of the company.

Employment Rights

Questions (249)

Jerry Buttimer

Question:

249. Deputy Jerry Buttimer asked the Minister for Jobs, Enterprise and Innovation the holiday entitlements that accrue to a person who works 27 hours per week; and if he will make a statement on the matter. [26735/14]

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Written answers

Entitlement to Annual leave is laid down under the Organisation of Working Time Act, 1997. Annual leave is earned on all hours worked including overtime. An employee is entitled to 4 working weeks in a leave year where they have worked at least 1365 hours, or one third of a working week for each month in the leave year where they have worked at least 117 hours, or 8 per cent of the hours worked in a leave year (but subject to a maximum of four working weeks). The most beneficial of the calculations is the one that will apply where more than one option is possible but all are subject to a maximum of 4 working weeks. The employer decides when annual leave can be taken but must take into account the need for the employee to balance work and family responsibilities and the opportunities for rest and recreation available to the employee.

Casual Trading Regulations

Questions (250)

James Bannon

Question:

250. Deputy James Bannon asked the Minister for Jobs, Enterprise and Innovation when he proposes to update the guidelines and by-laws for casual trading; and if he will make a statement on the matter. [26925/14]

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Written answers

Under Section 6 of the Casual Trading Act 1995, the making of bye laws in respect of casual trading is a function of the local authorities in relation to the regulation of casual trading in its functional area. Directive 2006/123/EC [the Services Directive] on services in the internal market was transposed into Irish law by way of S. I. No. 533 of 2010, European Communities (Provision of Services) Regulations 2010 and S. I. No. 555, European Communities (Court Orders for the Protection of Consumer Interests) Regulations, 2010. While the Directive is not concerned specifically with casual trading, but with the provision of services in general, it does impact on the issue of the regulation of casual trading by local authorities.

On the 17 December 2009, my Department issued a detailed guidance notice to all 88 local authorities entitled to make bye laws under the Casual Trading Act, 1995 outlining the obligations arising for them under the Services Directive. This guidance notice was drawn up in my Department following consultation with the Office of the Attorney General. Arising from the issue of this guidance notice, some local authorities raised issues in respect of their obligations under the Services Directive. My Department has engaged with the Office of the Attorney General in an attempt to resolve these issues and as a result of these consultations, my Department is currently examining whether the Casual Trading Act 1995 needs to be amended by way of primary legislation, whether the outstanding issues arising out of the Services Directive could be dealt with by way of revised a guideline notice or if a combination of the two methods is required. It is hoped to have a final decision on this shortly.

Enterprise Data

Questions (251)

Andrew Doyle

Question:

251. Deputy Andrew Doyle asked the Minister for Jobs, Enterprise and Innovation if he will provide a breakdown by county of the 32,000 who started new businesses in 2013; if he will provide the data in tabular form; the support mechanisms already in place to assist this high level of activity; and if he will make a statement on the matter. [27011/14]

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Written answers

I understand that the figures that the Deputy relies upon are contained in the Global Entrepreneurship Monitor (GEM) Report for 2013. The GEM Report is prepared independently of my Department and its agencies and I would suggest that the Deputy contact the authors of the GEM Report directly in order to obtain the required information. The most recent figures that I have to hand from the Companies Registration Office suggest that almost 6,000 companies were incorporated in Ireland between January and April of this year.

The Deputy will be aware that the vast majority of the measures contained in the Action Plan for Jobs 2014 will impact on the SME sector generally or specific groups of SMEs. Actions around access to finance, the skills agenda, support for research and innovation, support for management development and other capacity building measures are set out in the Action Plan. Sector specific actions covering food and drink, retail, construction, tourism, creative services, eHealth and the Green Economy aim to provide new opportunities for SMEs to win business both here and abroad.

Some of the measures introduced by this Government to assist SMEs to date, include the establishment of the Local Enterprise Offices; improving access to finance through the Credit Guarantee Scheme and the Microenterprise Loan Fund Scheme, and the establishment later this year of the Strategic Banking Corporation of Ireland; the development of an online tool which details the different government supports available to SMEs; supporting a pilot SME financial capability programme and supporting SMEs in developing an online presence which is vital in order to maximise their export potential.

It is my intention to shortly publish a National Entrepreneurship Policy Statement which will complement the existing business support initiatives in order to ensure that the operating environment is more coherent, responsive and conductive to entrepreneurship. This follows on from the work of the Entrepreneurship Forum which made 69 recommendations to further encourage and assist our current and potential entrepreneurs.

Patent Legislation

Questions (252)

Anne Ferris

Question:

252. Deputy Anne Ferris asked the Minister for Jobs, Enterprise and Innovation when the recommendation of the interdepartmental group led by his Department on the issue of whether to host a local division of the unified patent court will be considered; the impact analysis his Department has conducted if the decision is not to host a local division here, particularly on Ireland's intellectual property, IP, ranking and the way it might have an impact on a future referendum result; if his attention has been drawn to the fact that uncertainty over the decision to opt for a local division is causing concern amongst the IP sector here and beyond; and if he will make a statement on the matter. [27012/14]

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Written answers

The international Agreement on a Unified Patent Court (UPC), signed in February 2013, entails the establishment of an international court that will, when operational, have exclusive competence for actions for infringement and validity in respect of the new European unitary patent. My Department chairs an inter-Departmental Committee with relevant Departments of State to inform the policy choice in relation to Ireland’s participation in the international Court, when it is established. Given that responsibility overall for the administration of the Courts in Ireland comes within the remit of the Minister for Justice and Equality, there has been and will continue to be active engagement between my Department and the Department of Justice and Equality and the Courts Service on this issue.

Moreover, in order to better inform the policy choices in relation to Ireland’s participation in the patent Court, my Department has undertaken a consultation with a broad stakeholder base, including industry representative bodies and the enterprise agencies under this Department, to help inform consideration of this issue. A number of responses to the consultation point to the potential benefits of locating a local instance Court in Ireland, not least in terms of building the perception of Ireland as a knowledge economy given the importance of research and innovation activities and to contribute towards improving the attractiveness of Ireland as a location for investment leading to economic growth and increased employment. It is expected that this matter will be brought to Government before the summer recess.

Tax Code

Questions (253)

Seán Kyne

Question:

253. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the UK's patent box incentive which encourages and facilitates companies to register patents in the UK and simplify taxation obligations which in turn increases the attractiveness of that location for foreign direct investment; his views on the way Ireland can combat such an initiative particularly if the local division of the new Unified Patent Court is located in London; and if he will make a statement on the matter. [27331/14]

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Written answers

The UK Patents Box scheme, which came into force in April 2013, is a fiscal tool that allows companies to apply a lower rate of corporation tax to profits earned after that date from their patented inventions and certain other innovations. While responsibility for Ireland’s tax regime rests with the Minister for Finance, my Department is very conscious of the need to maintain a competitive corporate tax regime and to that end, closely monitors developments in other countries.

The development of the knowledge economy is seen as essential for generating new jobs. In particular, research and development and innovation are of vital importance in increasing economic activity both in terms of domestic business sectors and in attracting foreign direct investment. Many countries are continuing to develop fiscal policy tools to promote investment in intellectual assets. We are aware that other countries have introduced patent box schemes, including the UK. The general objective of such schemes is to provide a lower rate of tax on income derived from patents and other intellectual assets that are developed and commercially exploited by companies, generally by deducting or excluding a certain percentage of income from the tax base. It is understood that the EU Commission is currently reviewing the scheme.

In considering the merits of introducing a patent box scheme in Ireland, it is important to bear in mind that countries which have introduced such schemes have corporation tax rates that are significantly higher than our general 12.5% corporation tax rate for trading income. Alongside the 12.5% rate, Ireland provides attractive incentives to encourage R&D and the creation and exploitation of intellectual property, including a 25% tax credit for R&D expenditure. In addition, Ireland has a comprehensive capital allowances regime for expenditure on the provision of intangible assets for use in trading activities. We continue to keep Ireland’s tax offering under review to ensure that it remains competitive and effective in promoting investment in R&D, innovation and high-quality employment.

Responding to the Deputy’s reference to the Unified Patent Court, it is the case that under the international Agreement on the Unified Patent Court, London will host a central division of the court, in addition to which it is understood it will host its own local division of the Court. The nature of Ireland’s participation in the Unified Patent Court is currently a matter that is under active consideration and will be brought to Government for consideration before the Parliamentary summer recess.

Local Enterprise Offices Remit

Questions (254)

Seán Kyne

Question:

254. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation his views on the creation of local enterprise strategies by each of the local enterprise offices for its corresponding areas; if there are specific timeframes in which strategies must be prepared; if such strategies will include public consultation; and if he will make a statement on the matter. [27344/14]

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Written answers

The Local Enterprise Offices (LEOs) are responsible for the delivery of a range of services and supports to the micro enterprise and small business sector, as set out in the Service Level Agreements (SLAs) between Enterprise Ireland and each of the Local Authorities. These services and supports cover four key areas: Business Information and Advisory Services, Enterprise Support Services, Entrepreneurship Support Services and Local Enterprise Development Services.

The SLAs detail the relevant policies, operational guidelines, metrics and other provisions to which all LEOs are subject. In order to suitably tailor the service level required in each LEO area, each LEO and its associated Local Authority (LA) is required to develop an annual local Enterprise Development Plan for its functional area, in agreement with EI, and append this to the SLA to take account of local circumstances. These Plans will set out a range of measures aimed at directing enterprise development and encouraging entrepreneurship within the LEO functional area. A series of associated performance metrics and targets are currently being finalised by the Centre of Excellence (CofE) in Enterprise Ireland, in conjunction with the LAs and the LEOs, against which the performance of the LEOs will be measured.

Local Enterprise Offices Establishment

Questions (255)

Seán Kyne

Question:

255. Deputy Seán Kyne asked the Minister for Jobs, Enterprise and Innovation his views on the possibility of opening outreach or sub-offices of the local enterprise offices particularly in larger counties, including in Clifden in County Galway; if there is scope to involve the local development companies in such a policy; and if he will make a statement on the matter. [27346/14]

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Written answers

The newly established network of 31 Local Enterprise Offices (LEOs) is the mechanism through which people will connect at local level with all the appropriate information that they need in order to start, grow and succeed in business. The Galway LEO is part of the countrywide network which will deliver an improved system of local enterprise supports to start-ups and small businesses. Through its information and advice service, the LEO is now the single point of access to all local and national enterprise supports and services. A new national Gateway website, and 31 local sites, including Galway, will provide immediate access to such information.

In addition to the financial and soft supports available from the LEO, anyone thinking of starting or expanding a business in any part of Galway will be able to access the full range of State supports provided by different Government bodies – for example Galway County Council, Enterprise Ireland, Revenue, the Department of Social Protection, the Credit Review Office, training bodies – in one easily accessible location within the local authority. The enhanced LEO service provides that all categories of business – including sole traders, micro businesses and small and medium sized companies – will have access to all available Government supports and advice.

The changes at local government level through the Department of Environment, Community & Local Government include the creation of new Local Community & Development Committees which will include representation from the LEOs in each local authority area. In addition, appropriate mechanisms will be devised between the Department of Jobs, Enterprise and Innovation and the Department of Environment, Community and Local Government to ensure that where funding for enterprise development is available from different sources at local level the activities of LEOs, Local Development Companies or other support providers complement each other.

Trade Agreements

Questions (256)

Brendan Smith

Question:

256. Deputy Brendan Smith asked the Minister for Jobs, Enterprise and Innovation the position regarding the proposed transatlantic trade and investment partnership between the European Union and the United States; and if he will make a statement on the matter. [27394/14]

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Written answers

Since the EU Council’s Decision in June 2013, to start negotiations with the US on a Transatlantic Trade and Investment Partnership (TTIP), five negotiating rounds have taken place, the most recent taking place from 19-23 May in the US. This Round covered extensive technical discussion on a broad range of issues including regulatory issues, sanitary and phytosanitary measures, government procurement, intellectual property rights, electronic commerce and telecommunications, environment, labour, small and medium-sized enterprises, and energy and raw materials. Some discussion has already started on the text of an agreement in relation to helping SMEs, technical barriers to trade and on competition.

Negotiations on TTIP can be summarised as covering three broad areas:

The first is market access, for goods, services, and public procurement. The first tariff offers, that is, the immediate or phased elimination of import tariffs on an extensive list of goods, were exchanged earlier this year, and I expect that, over the next few weeks there will be further work and negotiations to extend the range of tariff free trade that can take place once TTIP comes into effect. On services, I understand that the US tabled its first offer last week, and Member States will meet shortly to discuss what has been proposed by the U.S. The Commission expects that the EU’s first offer on services will be ready soon. Naturally there is an important level of confidentiality about the detail of both sides’ negotiating position, but I am hopeful that the greatest level of market access can be achieved for our services exporters and for those looking to penetrate the very large U.S. public procurement market.

The second area covered by the talks is “rules”, on trade facilitation (EU and US customs systems), state-owned enterprises (these should operate on commercial lines), on raw materials and energy (EU is looking for access to US oil/gas exports that are currently restricted), and on labour and the environment issues (no weakening of standards/protections). Coming to agreement on these will also serve to set the standards for other Free Trade Agreements with trading partners, reduce the complexity for small companies to comply many standards and market regulations, and regulate markets in an open and transparent manner.

The third most difficult and complex, but most important aspect of the negotiations, is reducing regulatory burdens, which will involve a multiplicity of sectoral regulations. In particular, areas of regulation such as financial services, environment, and health and public safety are important here, where there are legitimate but in many cases unfounded concerns about possible lowering of regulatory standards. In fact, both the EU and the US are equally committed to the retention of high standards that serve to protect consumers. The objective is to address differences in standards between our two economies while at all times maintaining the high levels of health, safety, environmental and other protection that is reflected in EU legislation.

Progress in respect of regulation, through harmonisation, mutual recognition or convergence, is the most important area, as the result of studies show it will yield the most net gains. The Commission’s impact assessment suggests that between two thirds and four fifths of the gains from a future agreement would come from cutting red tape and having more coordination between regulators. It is important to see this as a two part issue: the process of how regulation is enacted, and the sector specific solutions being negotiated. How regulations are made needs to be more transparent, with regulators deepening relationships in order to address emerging issues together such as setting standards for new technologies. Regulators are also discussing how to reduce the cost of meeting existing standards without affecting the levels of protection afforded by them.

In addition, real progress on issues like car safety standards, ending double inspections at pharmaceutical and medical device plants, should, over time, reduce costs for business, regulators and consumers. It is important to note that while regulatory aspects are one of the main elements of the TTIP negotiations, there is nothing in the negotiations that should prevent or undermine the rights of both sides to regulate, and the level of regulatory protection on both sides, be it environment, food, consumer safety, will not be lessened.

As regards investment protection, the public consultation launched by the European Commission last March on the investment protection provisions of a future Transatlantic Trade and Investment Partnership, is still underway and will run until 6 July. All stakeholders have the opportunity to respond to this consultation, so that specific interests and concerns on investor protection and settlement of related disputes are well understood by the European Commission, and can be used to better define the EU’s approach to investor protection in the TTIP negotiations. The public consultation can be accessed at http://trade.ec.europa.eu/consultations. Further information on the negotiations, including background documents, are available on the European Commission’s TTIP website. [http://ec.europa.eu/trade/policy/in-focus/ttip]

At the fifth round of negotiations and as in all previous negotiating rounds, both negotiating teams maintained close dialogue with a large number of representatives of the academic community, consumer groups, labour unions, environmental groups, farmers and employers. The negotiators met with over 300 representatives of civil society. These discussions and briefings have become an integral part of the EU’s negotiating approach to TTIP, both during each round and also between each round, so that as much information as possible can be given to interest groups.

My Department recently engaged international expertise to examine the economic and other impacts TTIP and related potential opportunities. The focus of this study will be to identify key areas and sectors of the economy that will be impacted by the TTIP. This work will help to inform our input to the Commission’s negotiating position and to identify appropriate policy responses to be deployed to maximise the potential of this historic agreement and provide an assessment of the longer term implications for enterprise policy.

I hosted a Conference in Dublin Castle on 20 June to look at the opportunities for Ireland from the TTIP and to bring together at political and senior executive level, Oireachtas members, representatives of various economic actors, Government Departments, Agencies and Regulators, in order to explore opportunities that lie ahead for Ireland. I will continue to look for an agreement that is comprehensive and balanced and one that delivers real trade and economic potential for our economy. In this context I recognise the need to minimise the impact of trade liberalisation and market opening on sensitive areas of the economy and will continue to express our concerns that any agreement respects our broad trade interests and especially those of the Agriculture sector.

I understand that the next negotiating round is scheduled to take place from 14-18 July in Brussels.

Services for People with Disabilities

Questions (257, 264)

Terence Flanagan

Question:

257. Deputy Terence Flanagan asked the Minister for Social Protection the steps her Department is taking to encourage persons with blindness into employment; and if she will make a statement on the matter. [26647/14]

View answer

Terence Flanagan

Question:

264. Deputy Terence Flanagan asked the Minister for Social Protection the supports provided by her Department to those who suffer from blindness; and if she will make a statement on the matter. [26640/14]

View answer

Written answers

I propose to take Questions Nos. 257 and 264 together.

The Department provides a range of income and work-related supports for people with disabilities, including people with blindness. The Blind Person’s Pension is a means-tested payment paid to blind and visually impaired people who are habitually resident in Ireland. Recipients of the payment may also qualify for the Blind Welfare Allowance paid by the Health Service Executive (HSE). Persons in receipt of the Blind Person’s Pension will automatically get a Free Travel Pass and a Companion Free Travel Pass and may also qualify for other benefits such as the Living Alone Increase and the Household Benefits Package.

Work-related supports include the EmployAbility service (formerly the Supported Employment Programme) which facilitates the integration of people with disabilities into paid employment in the open labour market; as well as a number of other supports specifically for employers (the Wage Subsidy Scheme - which pays an employer a subsidy for employing a person with a disability, the Work Equipment Adaptation Grant, the Employee Retention Grant, and the Disability Awareness Scheme).

Social Insurance Rates

Questions (258)

Tony McLoughlin

Question:

258. Deputy Tony McLoughlin asked the Minister for Social Protection if she has given consideration to changing the rate of PRSI for persons working as part of a Tús programme and earning in excess of €352 per week; if she considers this rate excessive in view of the fact that such workers only earn €20 in excess of their social welfare income and work for 19.5 hours per week; and if she will make a statement on the matter. [26894/14]

View answer

Written answers

Tús is a community work placement initiative, established in 2011, that provides short-term part-time working opportunities for unemployed people. The income received by participants in employment schemes such as Tús, Community Employment Scheme, Rural Social Scheme and Gateway is treated as income from employment for PRSI purposes and, in the same manner as other workers, is subject to Class A PRSI. This provides the participants on these schemes with access to the benefit of full insurability, including future entitlement to short-term benefits such as illness and jobseekers benefits and contributes towards establishing entitlement to pensions.

Participants on Tús and other employment schemes receive a standard weekly rate of payment which is equivalent to the social welfare payment appropriate to their family size plus a top up of €20 subject to a minimum of €208 per week. Employees, including participants on Tús and the other employment schemes, with income below €352 per week do not pay PRSI. Where income exceeds €352, employees, including participants on Tús and the other employment schemes, pay Class A PRSI at 4% on all income.

Any proposal to change the rate of PRSI for persons working as part of any of the employment schemes including the Tús programme and earning in excess of €352 per week, would impact on their entitlements to social insurance benefits.

Pension Provisions

Questions (259)

Michael Healy-Rae

Question:

259. Deputy Michael Healy-Rae asked the Minister for Social Protection her plans to bring forward a comprehensive response to the pension crisis as measures will have to be put in place now to avoid a crisis in financing all pensions in a number of years; and if she will make a statement on the matter. [26962/14]

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Written answers

Over the past number of years, pension provision in all its forms in Ireland has experienced considerable challenges and changes. The sustainability of the wider system is a particular concern because of the demographic issues Ireland faces, the associated increases in pension (and other age related) costs, varying investment losses and the deterioration in the public finances since the recession.

The National Pensions Framework was published in March 2010 and provided a framework for long term pension reform. It encompassed consideration of all aspects of pension reform including the State pension, supplementary occupational pensions, private pensions and public sector pensions. Development of the framework was informed by a range of views provided during the Green Paper consultation process. These reforms are designed to enhance the sustainability of the system overall and ensure that people’s income in retirement is protected.

Since the publication of the Framework, it became necessary to further consider pension reform given the economic difficulties and deterioration in the public finances. In this regard, and at my request, in 2012 the Government engaged the Organisation for Economic Co-operation and Development (OECD) to conduct an independent review of long term pensions policy in Ireland. This review was published in April 2013 and encompasses the totality of pension provision in Ireland – State, private, occupational and public sector. The issues of sustainability, adequacy, modernity and equity were central to this review. Whilst endorsing pension policy reforms undertaken to date, the report makes a number of recommendations for future reform. Its key recommendation is to improve the adequacy of pensions by increasing coverage in the funded part of the pensions system through a universal mandatory or quasi-mandatory employment based pension system.

In this regard, you will be aware the Programme for Government includes a commitment to reforming the pension system to progressively achieve universal coverage, with particular focus on lower-paid workers. I have previously stated that a soft-mandatory approach such as that envisaged by an auto-enrolment scheme, using scale to achieve greater cost efficiencies for the member, is a very proactive way in which we can increase supplementary pension coverage, though it is recognised that introduction of such an initiative would be best supported by a more favourable economic environment than is currently the case.

In relation to the State pension, recent reforms to the pension system include a gradual increase in State pension age and the abolition of the State pension (transition). In January 2014, State pension age was standardised at age 66 with the cessation of State pension transition. The State pension age will increase to 67 years in 2021 and to 68 years in 2028. These reforms were introduced in the context of changing demographics and the fact that people are living longer and healthier lives.

Reforms will continue with the current PRSI system and, as highlighted by the OECD, to strengthen the link between social insurance contributions and benefits received. In this regard, a number of significant reforms have already been introduced and further reforms are scheduled for the years ahead. From September 2012, new rate bands for State pension were introduced. These additional payment rate bands more accurately reflect the social insurance history of a person and ensure that those who contribute more during a working life benefit more in retirement than those with lesser contributions. With effect from April 2012, the number of paid contributions required to qualify for a State pension increased from 260 paid contributions to 520 paid contributions. It is also planned to introduce a “total contributions approach” to determine eligibility for a State pension. The level of pension paid will be directly proportionate to the number of social insurance contributions made by a person over his or her working life. The proposed date for the introduction of a move to a total contributions approach is 2020, but this may be subject to change.

Arising from changing demographics, policy reform will continue to support longer working lives and to focus on the need to provide for sustainable and adequate pensions.

Proposed Legislation

Questions (260, 261)

Michael Healy-Rae

Question:

260. Deputy Michael Healy-Rae asked the Minister for Social Protection the position regarding inclusive rights-based gender recognition for transsexual people aged 16 and over to have their name legally recognised; and if she will make a statement on the matter. [27246/14]

View answer

Michael Healy-Rae

Question:

261. Deputy Michael Healy-Rae asked the Minister for Social Protection the position regarding inclusive rights-based gender recognition for transsexual persons; if they will be required to divorce from their spouse in order to have their gender recognised; and if she will make a statement on the matter. [27247/14]

View answer

Written answers

I propose to take Questions Nos. 260 and 261 together.

The General Scheme of the Gender Recognition Bill was published on 17 July 2013, following Cabinet approval. The General Scheme of the Bill was then referred for pre-legislative scrutiny to the Joint Oireachtas Committee on Education and Social Protection. Officials from the Department, representative groups and legal and medical experts participated in hearings held by the Committee in October 2013. The Committee’s Report was published in January 2014.

I gave careful consideration to the Committee’s Report and, following Cabinet approval, on 17 June 2014 I published the Revised General Scheme of the Gender Recognition Bill 2014. The Bill provides for the recognition of the acquired gender of transgender people who are not married or in a civil partnership. The legislation will also facilitate persons with intersex conditions.

Once the legislation is enacted, it will mean that a person will have their acquired gender fully recognised for all purposes, including dealings with the State, public bodies, and civil and commercial society. This will be done through the issuing of a gender recognition certificate by the Department of Social Protection. The person would then be able to apply for a new birth certificate. They would be entitled to marry a person of the opposite gender or enter a civil partnership with a person of the same gender. The Bill includes a provision that a person aged 16 or 17 years may, with parent/guardian consent, apply for a Court order exempting them from the requirement that an applicant for gender recognition must be 18 years or more. This application must be accompanied by confirmation from the treating physician and an independent physician that the person is sufficiently mature to make the application.

The introduction of gender recognition legislation raises complex and challenging Constitutional issues on marriage. In the context of this Bill, these were the subject of lengthy deliberation by the Attorney General and, subsequently, were carefully considered by Government before it approved the General Scheme of the Bill. As a result, one of the provisions of the proposed legislation is a requirement that in order to obtain a gender recognition certificate, a person must not be in a subsisting marriage. Similar considerations apply in relation to civil partnership.

It is fully acknowledged that the requirement to be single will be disappointing for those transgender persons who wish to remain married and have their acquired gender recognised. However, the Constitutional position that there is an impediment to legislating in such a way as to give rise to same-sex marriage requires that, under the proposed legislation, a person seeking recognition of their acquired gender must be single. If the planned referendum on same-sex marriage is approved by the public the obstacle will be removed and the legislation can be widened to include persons who are married or in a civil partnership.

The Revised General Scheme of the Bill has been referred to the Office of the Parliamentary Counsel for drafting with the aim of the legislation being published later in the year and enacted as soon as possible after that

Rent Supplement Scheme Data

Questions (262, 277, 295)

Brendan Griffin

Question:

262. Deputy Brendan Griffin asked the Minister for Social Protection her plans to assist persons who cannot pay their rents; and if she will make a statement on the matter. [26603/14]

View answer

Maureen O'Sullivan

Question:

277. Deputy Maureen O'Sullivan asked the Minister for Social Protection the current rent supplement maximum limits per geographic area; if available, the percentage of the average rental charged this supplement covers in each area; if there are any plans to review the amounts payable in areas such as Dublin, in view of the increase in rents in this region; and if she will make a statement on the matter. [26797/14]

View answer

Billy Timmins

Question:

295. Deputy Billy Timmins asked the Minister for Social Protection the position regarding rent supplement payments for families (details supplied) as rent levels in parts of County Wicklow are on par with Dublin without payments reflecting the true cost rental accommodation; and if she will make a statement on the matter. [27137/14]

View answer

Written answers

I propose to take Questions Nos. 262, 277 and 295 together.

The Government has provided over €344 million for the rent supplement scheme in 2014, the purpose of which is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources. There are currently approximately 76,000 rent supplement recipients. All prospective tenants, including those seeking to access rent supplement, particularly in urban areas, are now finding it increasingly difficult to secure appropriate accommodation due to the reduced availability of rental properties.

In view of these supply difficulties, the Dublin Region Homeless Executive in conjunction with the Dublin local authorities and voluntary organisations have agreed a protocol with the Department so that families at risk of losing existing private rented accommodation can have more timely and appropriate interventions made on their behalf. While there are no plans to extend this arrangement to other local authority areas at this time, I can assure the Deputies that officers administering rent supplement throughout the country have considerable experience in dealing with customers and make every effort to ensure that the accommodation needs of families are met. Staff in the Department’s Community Welfare Service have discretionary powers to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant, for example, when dealing with applicants who are homeless or who are at risk of losing their tenancy. Such cases are examined on a case by case basis having regard to the situation presented.

The current maximum monthly rent limits are provided in the tabular statement. The percentage of the average rent charged that is covered by rent supplement is not available.

A new rent limit review has commenced within the Department and will feed into the budgetary process. This review will involve a comprehensive analysis of information from a range of sources including rental tenancies registered with the Private Residential Tenancies Board (PRTB), the Central Statistics Office rental indices and websites advertising rental properties. The Department is also seeking the views from a number of stakeholders in this area including the local staff administering the scheme, the Department of the Environment, Community and Local Government, the Private Residential Tenancies Board and non-Government organisations such as Threshold, Focus Ireland and the Society of St Vincent de Paul.

Maximum Monthly Rent Levels from 17 June 2013 to 31 December 2014

County:

Single Shared

Couple Shared

Single

Couple

Couple/One Parent Family

1 Child

Couple/One Parent Family 2 Children

Couple/One Parent Family 3 Children

Dublin - Fingal

300

350

520

700

850

900

950

Dublin - Not Fingal

350

400

520

750

950

975

1,000

Carlow

230

250

375

433

520

560

590

Cavan

160

190

325

350

400

415

433

Clare

190

210

320

350

400

450

500

Cork

250

270

485

575

700

725

750

Donegal

175

200

300

325

350

400

450

Galway

280

300

475

540

700

725

750

Kerry

190

220

365

390

500

520

540

Kildare

250

300

433

500

650

700

750

Kilkenny

200

230

390

430

540

565

590

Laois

200

230

340

350

450

480

520

Leitrim

175

195

300

325

350

375

400

Limerick

200

240

375

400

500

550

600

Longford

160

175

290

300

325

340

350

Louth

215

250

390

400

550

575

600

Mayo

195

215

375

390

433

465

500

Meath

200

260

390

420

550

600

650

Monaghan

180

190

300

350

400

433

450

Offaly

200

220

360

400

450

475

500

Roscommon

200

220

300

325

400

410

425

Sligo

195

220

400

425

520

540

550

Tipperary

195

220

370

400

485

500

525

Waterford

220

240

375

390

475

500

525

Westmeath

190

210

390

400

500

520

530

Wexford

250

270

375

390

500

540

575

Wicklow

240

290

425

450

600

610

625

North Kildare

270

290

500

575

750

800

850

Bray

275

300

520

680

850

925

1,000

State Pension (Contributory) Eligibility

Questions (263)

Jim Daly

Question:

263. Deputy Jim Daly asked the Minister for Social Protection if she will confirm the categories of existing contributors that are exempt from the changes made in budget 2012 which required the number of stamps to be increased from 260 to 520 to qualify for a contributory pension; her views on whether it is fair and reasonable that a person, who had the required amount of stamps paid in 2012 to qualify for a contributory pension in 2015 and for whom it is not possible to acquire the required additional stamps in the allowed timeframe, does not now qualify for the payment; and if she will make a statement on the matter. [26620/14]

View answer

Written answers

The State pension is a very valuable asset and it is important, for sustainability reasons, that those who receive it have made a significant contribution towards it during a working life. In order to qualify for a State pension contributory, a person must satisfy a number of qualifying conditions which include;

- commencing insurable employment at least 10 years before pension age;

- a minimum of 520 qualifying contributions paid; and

- achieving a yearly average of at least 10 qualifying contributions, paid or credited, over their working life.

“Developing the National Pension System - Final Report of the National Pensions Board” , published in 1993, recommended that the number of paid contributions required to qualify for a contributory pension should be increased to 520 contributions. The necessary legislation to effect the recommendations of the National Pensions Board was contained in Section 12 of the Social Welfare Act 1997 (now incorporated in the Social Welfare Consolidation Act 2005) which provided for the implementation of the change in two stages, with the paid contribution requirement being standardised at 260 from 2002, rising to 520 from April 2012. This condition applies for all new claims to the State pension (contributory), except in certain cases where further Social Insurance contributions may have been paid outside the State, and in such cases EU regulations or a bilateral agreement on social security may apply.

My Department has taken a number of actions to increase awareness of changes to the State pension, including the increase in the contribution requirements, and to assist customers determine their entitlements. An information pack relating to a number of changes to State pension was published and circulated widely to the various representative groups and to all members of the Oireachtas. Presentations on the introduction of these changes were also made at the Department’s regular briefings with customer representative groups and to members of the public.

Finally, social welfare supports will continue to be available to those who need them most and where a person fails to meet the qualifying conditions of an insurance based scheme, a means tested assistance payment, such as the State pension (non-contributory), may be available provided they satisfy the qualifying conditions.

Question No. 264 answered with Question No. 257.

Social Welfare Rates

Questions (265)

Terence Flanagan

Question:

265. Deputy Terence Flanagan asked the Minister for Social Protection if she will provide assurance that there will be no cuts to benefits for those who suffer from blindness in next year's budget; and if she will make a statement on the matter. [26641/14]

View answer

Written answers

The Programme for Government contains a commitment to maintain weekly rates of welfare payments. In line with this commitment, the weekly personal rate of blind pension, including increases for qualified adults and children, has been fully maintained since this Government came into office. Recipients of blind pension are automatically eligible for free travel, and a companion free travel pass and may also be eligible, subject to satisfying the relevant conditions, for the fuel allowance, electricity/gas allowance, free television licence and the living alone allowance. Recipients of the blind pension may also be awarded the blind welfare allowance paid by the HSE.

The Budget will not be announced until October and it is far too early to signal what adjustments in expenditure and taxation will be necessary in order to achieve the Government’s deficit target. However, the Government continues to be committed to protecting core weekly rates of welfare payments, something we have successfully done over the last three years.

Jobseeker's Allowance Eligibility

Questions (266)

Terence Flanagan

Question:

266. Deputy Terence Flanagan asked the Minister for Social Protection the position regarding social welfare payments (details supplied); and if she will make a statement on the matter. [26642/14]

View answer

Written answers

In order to receive a jobseeker’s payment a person must satisfy the conditions of the scheme i.e. that they are available for and genuinely seeking work. Claims are reviewed on a regular basis and those who fail to satisfy those conditions can have their claim disallowed. You will also be aware that the Department has committed resources to activating jobseekers on the live register. Activation measures include the requirement to attend group or individual meetings with a case officer, and/or avail of suitable education, training or development opportunities, or specified employment programmes, which are considered appropriate to a person’s circumstances. Where a person fails to engage with the services on offer their payment can be reduced or withdrawn.

The Department does not comment on allegations about specific cases or customers. All allegations made whether anonymous, confidential or otherwise are examined and if relevant, will be referred for follow-up action.

Social Welfare Fraud Investigations

Questions (267)

Terence Flanagan

Question:

267. Deputy Terence Flanagan asked the Minister for Social Protection if the social media pages of those social welfare payment recipients who are under investigation for benefit fraud or regarding concerns that they are not actively seeking work are regularly monitored by benefit fraud inspectors to assist with any investigations against them; and if she will make a statement on the matter. [26643/14]

View answer

Written answers

The Department recognises the popularity and potential value of social media for communicating with customers and acknowledges that these tools can bring benefits. Whilst not a systematic part of the Department's on-going targeted control activities, staff will occasionally refer to social media sites as part of investigations, for example to follow up on reports from members of the public referring to information on various sites.

Staff who have access to social media sites for official purposes are vigilant regarding their use of such sites and ensure that, at all times, their usage is lawful and in keeping with the Department’s policies. Details obtained from social media in these circumstances are examined and, where relevant, may be used as part of an overall investigation. A payment is not suspended or stopped on the basis of social media site posting but the information may be used a part of the evidence gathered to review a customer’s on-going entitlement. It is important to note that in the context of the overall number of control reviews undertaken last year, investigations which refer to social networking sites would have been negligible.

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