Written Answers Nos. 35-53
35. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will indicate the annual saving to the Exchequer from a 20% reduction in all professional fees paid by his Department, including but not limited to legal, consultancy, IT-related, advisory, advertising and accountancy; and the company name and the amount invoiced in each case between 1 June 2013 and 31 May 2014. [30067/14]
View answer36. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in a tabular form a list of all professional fees paid by his Department, including but not limited to legal, consultancy, IT-related, advisory, advertising and accountancy; and the company name and the amount invoiced in each case between 1 June 2013 and 31 May 2014. [30082/14]
View answerI propose to take Questions Nos. 35 and 36 together.
Details of payments in the period in question are included in the following tables in respect of Vote 27 (International Co-operation) and Vote 28 (Foreign Affairs and Trade). There are also costs incurred on professional fees at missions abroad where advice is sought from time to time on a range of local matters.
Total expenditure on the services mentioned in the twelve months to end May 2014 is set out in the table. The application of a 20% reduction to this expenditure would result in a net saving of €1.6m.
|
Vote |
Expenditure |
|
Vote 27 |
€2.276 M |
|
Vote 28 |
€5.821 M |
|
Total |
€8,097 M |
Additional Information Vote 28
|
Supplier |
Amount € |
|
BLUEWAVE TECHNOLOGY |
8,917.50 |
|
CORE FINANCIAL SYSTEMS LTD |
15,587.79 |
|
CORE INTERNATIONAL LTD.(IRL) |
2,072.55 |
|
EIRCOM AGENCY ACCOUNT |
57,738.60 |
|
INTEGRITY SOLUTIONS LTD |
17,207.70 |
|
ISAS |
176,262.69 |
|
IT ROLLOUT CONSULTANCY |
355,498.55 |
|
JK NETWORK ARCHITECTURE DESIGN LTD |
338,877.30 |
|
PT CONSULTING |
74,424.82 |
|
REHAB AND RECYCLING |
817.2 |
|
RENAISSANCE CONTINGENCY |
6,765.00 |
|
SMART LICENCE LTD |
23,616.00 |
|
SOFTWORKS COMPUTING Ltd |
26,243.99 |
|
SURFBOX ORMONDE TECHNOLOGIES LTD |
2,794.00 |
|
THREATSCAPE LTD |
3,505.50 |
|
TOMORROWS WORLD LTD |
502,162.81 |
|
VERSION 1 SOFTWARE |
30,339.87 |
|
ZERO DOWNTIME LTD |
129,878.10 |
|
ZINOPY |
7,749.00 |
|
1E Ltd |
3,054.40 |
|
ALLIED BUSINESS SUPPLIES |
66.42 |
|
AMS LTD |
8,303.11 |
|
JIM DUFFY |
16,915.08 |
|
MARGARET HENNESSY |
2,800.00 |
|
STATE CLAIMS AGENCY |
-3,874.48 |
|
BANK OF IRELAND |
430 |
|
THOMAS P FERRIS |
1,200.00 |
|
WRIGHT CONSULTANCY |
14,000.00 |
|
STATE CLAIMS AGENCY |
1,753.98 |
|
KEYTRAINERIRELANDLTD |
1,000.00 |
|
FRANK COGAN |
5,198.88 |
|
BRINDLEY ADVERTISING |
17,148.86 |
|
BUSINESS EXHIBITIONS LIMITED |
5,441.52 |
|
CIVICMEDIA LTD |
5,166.00 |
|
CODEX OFFICE PRODUCTS |
477.24 |
|
MAXWELL PHOTOGRAPHY |
1,613.97 |
|
MEDIAVEST |
4,906.37 |
|
RED DOG |
774.9 |
|
TRUVO |
6,191.82 |
|
BANK OF IRELAND |
253 |
|
BEARING POINT |
2,832,159.14 |
|
BLUEWAVE TECHNOLOGY |
430.5 |
|
BUTLER TECHNOLOGIES |
35,468.75 |
|
CENTRAL SOLUTIONS LTD |
7,158.60 |
|
CLEAR OCEAN INTERNET SOLUTIONS |
10,332.00 |
|
CORE FINANCIAL SYSTEMS LTD |
157,732.89 |
|
CORE INTERNATIONAL LTD.(IRL) |
93,373.61 |
|
CW SYSTEMS INTEGRATION |
3,058.64 |
|
DELL COMPUTER |
30,622.36 |
|
ECOM SOLUTIONS LTD |
16,182.81 |
|
HOUSES OF THE OIREACHTAS IT SUPPORT SERVICES |
14,110.50 |
|
INTEGRITY SOLUTIONS LTD |
63,830.85 |
|
IT ROLLOUT CONSULTANCY |
25,337.90 |
|
KROLL ONTRACK |
2,539.04 |
|
MICROMAIL |
13,709.83 |
|
MICROSOFT |
80,970.90 |
|
ORACLE EMEA LTD |
72,499.36 |
|
PAPER DOCK LTD |
5,101.83 |
|
PLANNET 21 COMMUNICATIONS LTD |
64,907.10 |
|
PT CONSULTING |
15,781.78 |
|
REPLIWEB INC |
6,140.65 |
|
SOFTEX |
1,168.50 |
|
SOFTWORKS COMPUTING Ltd |
1,014.75 |
|
SURFBOX ORMONDE TECHNOLOGIES LTD |
16,767.36 |
|
SYSTEM DYNAMICS |
3,666.09 |
|
TERMINAL FOUR SOLUTIONS LTD |
79,962.30 |
|
WORLDREACH SOFTWARE CORPORATION |
74,278.24 |
|
ACQUIRERSYSTE |
1,781.04 |
|
ZINOPY |
22,638.15 |
|
AVONDALE MEDIA SERVICES |
7,908.56 |
|
BANK OF IRELAND |
162.62 |
|
CLARE MULLIGAN CONSULTING LTD |
1,600.00 |
|
CLINGENDAEL INSTITUTE |
800 |
|
CODEC-DSS |
3,952.00 |
|
CORE INTERNATIONAL LTD.(IRL) |
390 |
|
DUBLIN RAPE CRISIS CENTRE |
980 |
|
EMCO CUMARSAID TEO |
4,000.00 |
|
EUS HOLDINGS |
700 |
|
IACT |
1,995.00 |
|
ICS SKILLS TRAINING & CERTIFICATION |
450 |
|
INSTITUTEOFPUBLICADMINISTRATION |
4,176.70 |
|
INTEGRITY SOLUTIONS LTD |
1,845.00 |
|
IRISH MANAGEMENT INSTITUTE |
5,000.00 |
|
MARGARET HENNESSY |
400 |
|
MARIE CROSS |
400 |
|
MELANIE PINE |
1,600.00 |
|
OLIVE SAFETY SERVICES |
600 |
|
PATRICK SUTTON T/A COMMUNICATE |
8,820.00 |
|
PEAK CONNEXXION LTD |
3,300.00 |
|
PITMAN TRAINING CENTRE |
2,000.00 |
|
SCHOOL OF ORIENTAL & AFRICAN STUDIES |
31,948.72 |
|
SHANNON CONSULTING |
4,400.00 |
|
TIGER CONSULTING |
19,565.00 |
|
WRIGHT CONSULTANCY |
10,790.00 |
|
BERNADETTE NIC AN TSAOIR |
227.5 |
|
DCULS LTD |
615 |
|
EUROPUS TEO |
63,112.42 |
|
EUROTEXT TRANSLATIONS LTD |
797.63 |
|
FREASTAL.IE |
9,623.64 |
|
KL COMMUNICATIONS |
2,001.21 |
|
MARIE THERESE SAFFRE |
90 |
|
SEAN DE FREINE |
926 |
|
WORD PERFECT TRANSLATION SERVICES LTD |
59.11 |
|
Grand |
5,821,241.62 |
Additional Information Vote 27
|
ACTRAADVISERS LIMITED |
€9,415.97 |
|
ASTEC GLOBAL CONSULTANCY LIMITED |
€63,325.64 |
|
BACKSTOP CONSULTING LIMITED |
€32,115.96 |
|
ADRIENNE BOYLE |
€4,440.00 |
|
MARY BRADY |
€6,088.72 |
|
DENIS CAGNEY |
€360.18 |
|
GERALD CAWLEY |
€3,011.83 |
|
MARY CORBETT |
€34,340.56 |
|
CR2 SOCIAL DEVELOPMENT LTD |
€2,902.70 |
|
BERNIE CRAWFORD |
€5,632.00 |
|
PHILIP CROWLEY |
€2,092.17 |
|
ANNE-MAIRE CUNNINGHAM |
€9,423.85 |
|
DHR COMMUNICATIONS LTD |
€157,894.89 |
|
VICKY DILLON |
€103,523.12 |
|
CATHY DORAN |
€15,986.37 |
|
ANDREW EBRILL |
€1,012.48 |
|
ECONOMIC + SOCIAL RESEARCH INS |
€203,419.74 |
|
DEIRDRE FARRELL |
€18,900.00 |
|
KEVIN FARRELL |
€3,000.00 |
|
FISCUS LIMITED |
€1,640.96 |
|
DR MARGARET FITZGERALD |
€2,866.71 |
|
FITZPATRICK ASSOCIATES |
€53,821.35 |
|
NICHOLAS FREELAND |
€7,434.67 |
|
CATHY GAYNOR |
€12,605.73 |
|
GERAGHTY CONSULTING |
€26,690.77 |
|
MARTIN GREENE |
€28,684.28 |
|
UNIVERSITY OF GREENWICH |
€19,292.86 |
|
GROUPE URD |
€50,000.00 |
|
SARAH HUNT |
€48,869.34 |
|
BRONAGH HYNES KAREN MCMINN |
€20,811.57 |
|
RORY HYNES |
€895.92 |
|
IRISH COUNCIL FOR INTERNATIONAL STUDENTS ICOS |
€336,731.35 |
|
MARY JENNINGS |
€19,748.67 |
|
JIM KINSELLA |
€2,557.90 |
|
CHARLES LATHROP |
€2,992.20 |
|
PATRICK LEAHY |
€560.54 |
|
PETER MCEVOY |
€24,231.89 |
|
HUNTER MCGILL |
€11,039.89 |
|
AMY ROSE MCGOVERN |
€8,600.00 |
|
BERNARD MCLOUGHLIN |
€3,229.38 |
|
MICHAEL MCMANUS |
€22,169.37 |
|
MAMAR MERZOUK |
€15,000.00 |
|
MOKORO LTD |
€72,250.20 |
|
KEVIN MOORE |
€38,019.46 |
|
NIALL MORRIS |
€78,081.61 |
|
UNA MURRAY T/A NUA CONSULTING |
€31,474.42 |
|
HEATHER NESBITT |
€1,987.53 |
|
NUIM CENTAL ACCOUNT |
€22,631.30 |
|
NUTRITION WORKS |
€6,599.10 |
|
RUTH O' DOHERTY |
€3,200.00 |
|
STEPHEN O DWYER CONSULTING |
€4,574.87 |
|
OGHMA CONSULTANCY |
€3,450.00 |
|
NIALL O KEEFFE |
€21,944.72 |
|
PROF HELEN O'NEILL |
€2,584.00 |
|
GEMMA O REILLY |
€10,420.51 |
|
INTERNATIONAL ORGANISATION DEV |
€77,906.51 |
|
ROBERT O ROURKE |
€957.80 |
|
ANDY POLLAK |
€11,546.32 |
|
REAL EVENT MANAGEMENT |
€107,989.77 |
|
PHILIP REGAN |
€4,832.14 |
|
ROTHWELL PERFORMANCE CONSULTING |
€21,520.78 |
|
PHILIP RYAN |
€538.52 |
|
SELF HELP AFRICA |
€195,592.00 |
|
PAUL SHEEHAN |
€5,000.00 |
|
GARTH SINGLETON |
€34,151.29 |
|
AISLING SWAINE CONSULTANCY LTD |
€19,419.00 |
|
TONY TAAFFE |
€14,950.00 |
|
TEAGASC |
€3,109.10 |
|
EMMA WARWICK |
€62,926.54 |
|
DR. DAVID WEAKLIAM |
€999.29 |
|
MIKE WILLIAMS |
€13,991.25 |
|
BERNARD WOOD + ASSOCIATES LTD |
€6,880.88 |
|
Total Vote 27 |
€2,276,890.44 |
37. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in tabular form a breakdown of all third level courses, training programmes and courses, and accompanying costs provided for employees of his Department for the 2013-2014 academic year, from 1 September 2013 to the end of June 2014. [30097/14]
View answerThe information requested by the Deputy is provided in the following table.
Expenditure on Third Level Courses and Training Programmes Sept 2013 to June 2014
|
Nature |
Cost € |
|
Third Level (Refund of Fees Scheme) |
84,975 |
|
Language Tuition |
172,020 |
|
Other Courses & Programmes |
43,671 |
|
Total |
300,666 |
Refunds of fees arise in cases where staff of the Department undertake qualifying third-level courses in their own time and receive financial assistance under a scheme sanctioned by the Department of Public Expenditure and Reform. The Department of Foreign Affairs and Trade strongly encourages and supports its staff in this regard, particularly where courses are directly relevant to the work of the Department.
Given the nature of diplomatic service, my Department also makes a significant investment in language tuition. Other courses and training programmes regularly delivered include a comprehensive training programme for those members of my Department taking up foreign postings, with modules on trade promotion, economic themes, provision of consular services, personal safety, public diplomacy and human rights. Training is also routinely provided for staff in key areas such as management development, performance management, leadership, positive working environment, macroeconomics, communication skills, social media and customer service. In-house expertise is used wherever possible.
38. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in tabular form the annual saving to the Exchequer from a reduction of 5%, 7%, 10%, 12%, 15%, 17% and 20%, respectively, in training and development provision for his Department. [30112/14]
View answerExpenditure on Training & Development in my Department in 2013 was €513,431. Based on that figure, the percentage reductions specified by the Deputy would result in the following outcomes:
|
- |
5% € |
7% € |
10% € |
12% € |
15% € |
17% € |
20% € |
|
Resulting reductions in expenditure |
25,672 |
35,940 |
51,343 |
61,612 |
77,015 |
87,283 |
102,686 |
39. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in tabular form the annual saving to the Exchequer from a reduction of 5%, 7%, 10%, 12%, 15%, 17% and 20%, respectively, in travel and expenses for his Department. [30127/14]
View answer40. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in tabular form the expected carryover of current expenditure savings from 2014 into next year. [30161/14]
View answer41. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in tabular form the expected carryover of capital expenditure savings from 2014 into next year. [30176/14]
View answer42. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade if he will provide in tabular form the expected unspent current expenditure from 2014 to be carried into next year. [30208/14]
View answerI propose to take Questions Nos. 39 to 42, inclusive, together.
With regard to savings that would arise from reductions if applied to my Department's budgetary allocation for travel and subsistence this year (Question 39), the Revised Estimates Volume makes provision for this expenditure as follows in 2014: Vote 28 (Foreign Affairs) - €6.630 m; and Vote 27 (International Co-operation) - €2.300 m; Total: - €8.930 m.
The annual savings, on the basis of the reductions specified, would be as follows:
|
2014 allocation |
1% |
5% |
7% |
10% |
12% |
15% |
17% |
20% |
|
8,930,000 |
89,300 |
446,500 |
625,100 |
893,000 |
1,071,600 |
1,339,500 |
1,518,100 |
1,786,000 |
As regards possible unspent funds (Questions No. 40, 41 and 42), while we are still only mid-way in the financial year I do not expect at this stage that there will be any under-spend in either of the Votes administered by my Department (Vote 28, the Departmental Vote; and Vote 27, International Co-operation). This applies to both current and capital expenditure.
Reductions of this kind to travel and subsistence could not be made without severe dislocation to the vital work of the Department.
43. Deputy Brendan Smith asked the Minister for Foreign Affairs and Trade if he proposes to raise at the EU Foreign Affairs Council the issues referred to in correspondence (details supplied) regarding Burma; and if he will make a statement on the matter. [30300/14]
View answer44. Deputy Brendan Smith asked the Minister for Foreign Affairs and Trade if he will have the issues outlined in correspondence (details supplied) regarding Burma considered; and if he will make a statement on the matter. [30301/14]
View answerI propose to take Questions Nos. 43 and 44 together.
Human rights have been a priority of successive Irish governments, and are a key dimension of our foreign policy. Ireland works bilaterally and through the EU and UN to ensure that human rights are respected in Myanmar/Burma.
At the EU Foreign Affairs Council in May 2014, EU Foreign Ministers approved the establishment of a formal EU-Myanmar Human Rights Dialogue. The first such Dialogue took place in Myanmar on 20th May. It was co-chaired by the EU Special Representative for Human Rights and the Myanmar Deputy Minister of Foreign Affairs, and covered major issues of concern with regard to human rights, including discrimination, hate speech and inter-communal violence against the Rohingya in Rakhine, and in other parts of Myanmar. It also focused on political prisoners, land and labour rights, freedom of expression and co-operation with international human rights mechanisms and in multilateral fora.
At the dialogue the EU stressed that continued efforts to achieve ethnic peace and end discrimination and violence in Rakhine State were key for the success of Myanmar's continued transition to democracy. The EU encouraged the Myanmar government to address the underlying causes of inter-communal violence, including the status and welfare of the Rohingya and expressed regret that Rohingya could not self-identify during the recent census. The EU also expressed readiness to co-operate with Myanmar on initiatives which promote inter-communal understanding.
In April 2014, Ireland was involved in organising with several NGOs an event at UN Headquarters in New York that focused on sexual violence in Myanmar. It featured interventions from a Burmese woman human rights activist, Naw K'nyaw Paw, and Ireland's Permanent Representative to the UN, David Donoghue. In March 2014, the UN Human Rights Council, of which Ireland is currently a member, adopted an EU-led resolution on the situation of human rights in Myanmar, which urged the Government of Myanmar to step up its efforts to put an end to remaining human rights violations and abuses. In particular, the Council reiterated its serious concern about the situation of the Rohingya and other minorities in Rakhine State, including repeated instances of violence and other reported abuses, requested that an independent investigation be undertaken into those events and that those responsible be held to account.
Officials from my Department met with Burma Action Ireland, the Chairman of the European Rohingya Council and a member of the Irish Rohingya Community earlier this month to listen to their concerns and to brief on the Irish Government's actions in relation to Myanmar. Ireland's (non-resident) Ambassador to Myanmar met with the Minister for Foreign Affairs of Myanmar during a visit to the country in May 2014. The Ambassador raised Ireland's ongoing concerns about the situation in Rakhine State, including the poor conditions that the some 140,000 displaced Rohingya people are enduring in the IDP camps, and the lack of humanitarian access, given that many international NGOs have been forced to leave Rakhine State.
The Ambassador also visited Rakhine State in September 2013. The purpose of the visit was to assess the humanitarian situation on the ground, particularly for the displaced members of the Muslim Rohingya community and to assess whether there are any areas where Ireland could offer support to help alleviate their plight. The Ambassador visited several IDP camps, called on the Chief Minister of Rakhine state, met with local Buddhist religious leaders, and had discussions with the heads of the main UN agencies working on the ground.
Since 2007, Ireland has provided more than €7.87 million to Myanmar through NGOs and Irish missionaries for both long-term development work and emergency and recovery responses. In July 2013, officials from my Department undertook a scoping visit to Myanmar/Burma. The purpose of the mission was to assess developments in the country, and examine how Irish Aid could develop an assistance programme for the country. The visit encompassed a wide range of meetings with political, business, diplomatic and civil society contacts. The range of meetings allowed a broad assessment of developments in the country and to identify key elements of a possible aid programme. On foot of this scoping visit, in December 2013, the Tánaiste announced an additional programme of funding of €500,000 for a bilateral development assistance programme in 2013. The same level of funding has also been agreed for 2014. Irish Aid also granted funding of €425,825 to Trócaire in 2014 under the Humanitarian Programme Plan for Food Security, Livelihood and Protection assistance programme in Laiza, Kachin State, Myanmar.
The Ambassador to Myanmar also visited Kachin state in Upper Burma in March 2013, as part of a field trip by EU Ambassadors accredited to Myanmar. The purpose of the trip was to visit IDP camps to assess the situation of those displaced by fighting in Kachin state; to get an update on efforts to broker a ceasefire agreement between the Government and the Kachin Independence Army (KIA); and to meet with local government, NGOs (including a number of Irish missionaries) and UN agencies to discuss how the EU can best assist in peace efforts and humanitarian relief.
Ireland and our international partners recognise that complex challenges remain in Myanmar and will continue to urge its government to address human rights abuses. We will continue to press for the Myanmar government to implement its commitment to open a local country office of the Office of the UN High Commissioner for Human Rights which would have a mandate for monitoring and reporting on human rights issues.
45. Deputy Finian McGrath asked the Minister for Foreign Affairs and Trade if he will provide an update on trade, tourism and business transactions with Cuba; current policy on the blockade of Cuba; and if he will make a statement on the matter. [30307/14]
View answerIreland's positive links with Cuba have grown steadily, in particular since the establishment of diplomatic relations between our two countries in 1999. In 2013, bilateral trade in goods with Cuba reached €1.35 million, an increase from the figure of €1.2 million in 2012. In keeping with our interest in relations with Cuba developing across various areas, the Ambassador of Ireland to Mexico, who is also accredited to Cuba, visited Cuba earlier this year and a further visit to Cuba was made by an Embassy official last month. Their meetings included contacts with Cuban Ministries on various trade and economic issues of mutual interest.
The EU is Cuba's second most important trading partner, accounting for 20% of total Cuban trade. The EU is also Cuba's biggest external investor and approximately one third of all tourists visiting the island every year come from countries of the European Union. I am pleased that on 29 April last, the EU and Cuba began negotiations on a Political Dialogue and Co-operation Agreement. Such an agreement will strengthen the EU-Cuba relationship and provide an improved framework for political dialogue, economic relations and co-operation in the period ahead.
With regard to the US embargo of Cuba, Ireland and the other member states of the European Union are firmly of the view that the lifting of the embargo would facilitate an opening of the Cuban economy to the benefit of the Cuban people. Our concerns about economic, commercial and financial measures against Cuba which are contrary to commonly accepted rules of international trade are long-standing and clear. We object to unilaterally imposed measures that impede the economic and commercial relations of EU member states with Cuba. Accordingly Ireland, and other EU member states, support resolutions at the UN General Assembly that express opposition to the embargo, most recently on 29 October 2013.
We will continue to work with Cuba to strengthen relations between our countries.
46. Deputy Mary Lou McDonald asked the Minister for Foreign Affairs and Trade the annual saving to the Exchequer if all Ministers' special advisers' pay in his Department was capped at the first point of the principal officer grade. [30910/14]
View answerThe Guidelines on Ministerial Appointments issued in March 2011 do not apply to Special Advisers to the Taoiseach and Tánaiste. There are five Special Advisers in my Department. Salary details for each of them are set out in the following table.
|
Name |
Position held |
Annual Salary |
|
Mark Garrett |
Chief Adviser – Office of the Tánaiste |
€156,380 |
|
Colm O'Reardon |
Economic Adviser – Office of the Tánaiste |
€144,550 |
|
Jean O'Mahony |
Special Adviser – Tánaiste and Minister for Foreign Affairs and Trade |
€84,706 |
|
Niamh Sweeney |
Special Adviser – Tánaiste and Minister for Foreign Affairs and Trade |
€78,670 |
|
Deborah Sweeney |
Special Adviser – Minister of State Paschal Donohoe |
€68,293 (AP salary scale) |
The Principal Officer (standard) scale is €75,674 - €92,550.
47. Deputy Finian McGrath asked the Minister for Finance if he will request Bank of Ireland to stop restricting services to customers here who do business with Cuba; if he will challenge US policy on same; and if he will make a statement on the matter. [30272/14]
View answer73. Deputy Finian McGrath asked the Minister for Finance the reason the US is preventing Bank of Ireland customers from doing business with Cuba, with the bank saying it can no longer process international transactions to or from the island; and if he will act on this matter. [30273/14]
View answerI propose to take Questions Nos. 47 and 73 together.
As the Deputy is aware, I have no direct function in the relationship between banks and their customers. I have no statutory function in relation to banking decisions made by individual lending institutions at any particular time as these decisions are taken by the board and management of the relevant institution. A Relationship Framework has been specified that defines the nature of the relationship between the Minister for Finance and each bank. These Frameworks were published on 30 March 2012 and can be found at: http://banking.finance.gov.ie/presentations-and-latest-documents/.
Notwithstanding this, officials in my Department have referred the issue to Bank of Ireland and have received the following comment in this regard:
"The US Government has a restrictive trade embargo against Cuba. The US legislative and regulatory measures include an embargo on making or receiving payments from Cuba and/or facilitating the making or receiving of payment from Cuba.
Bank of Ireland depends on correspondent banks for the processing of our national, European and international transactions, including our SEPA (Single European Payment Area) transactions. We are reliant on our correspondent banks because they process and facilitate all such transactions on our behalf. The current issue has arisen as a result of the transition to SEPA. As it happens, our principal correspondent bank for SEPA transactions is a leading US bank who must comply with its own regulatory requirements and obligations and to avoid a possible exposure to regulatory sanctions and penalties.
As a result, we are not in a position to process such transactions. This affects all international payments to or from Cuba and also any related SEPA payments."
The Deputy has asked if I, as Minister for Finance, will challenge relevant U.S. policy. The Deputy will be aware that US policy in this regard is not restricted to Ireland and extends worldwide. Accordingly, I can confirm for the Deputy that I do not intend to challenge this policy as I would not expect a positive outcome to such an action.
48. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which consideration might be given by his Department to the launch of a Government bond to attract savings to the private sector in order to meet infrastructural deficits of a pivotal nature such as the building of public sector housing and other major capital works such as hospitals, schools, flood prevention and damage repair, thereby achieving the provision of vital and urgently required facilities likely to benefit the economy with no impact on borrowing requirements; and if he will make a statement on the matter. [30359/14]
View answerAll moneys raised through Government borrowing are paid into the Central Fund and used to fund Government spending as approved by the Oireachtas. It has never been the custom to link borrowing to specific projects as to do so would limit the flexibility of the Government in managing the State's finances. That said, there are a number of options available to individuals who wish to help support the Government's work in promoting economic growth and employment.
The National Solidarity Bonds were introduced to provide a wider range of options for retail investors. The Minister for Finance in announcing Budget 2010 launched the 10-year National Solidarity Bond, the purpose of which was to allow citizens an opportunity to invest and provide money to the State to stimulate economic recovery and to assist in the maintenance and creation of employment. Following the success of the launch of the ten-year National Solidarity Bond a four-year National Solidarity Bond was launched in 2011.
The NTMA's other State Savings products, available through any Post Office, allow people to support the Exchequer through Savings Bonds, Savings Certificates and Instalment Savings.
There are also possibilities in place for people interested in investing in longer-term Government bonds. Irish sovereign bonds are available through seventeen Primary Dealers recognised by the National Treasury Management Agency (NTMA). The NTMA has published information on their website (www.ntma.ie) which gives the names and contact details for institutions which sell bonds to the public, and the fees they charge.
The NTMA will continue to encourage personal savers to purchase the National Solidarity Bonds and the other NTMA State Savings products. The NTMA keeps the suite of State Savings products and the interest rates paid on them under constant review to ensure that the products remain competitive and attractive to retail investors. These products have been an important and dependable component of Government borrowing for many years and make a valuable contribution to the national finances.
I am happy to confirm that the Government remains committed to exploring alternative means of financing capital projects. The Government has announced the creation of the Ireland Strategic Investment Fund (ISIF) to channel investment from the National Pensions Reserve Fund (NPRF) towards productive investment in sectors of strategic importance to the Irish economy. Within its existing statutory investment policy and in line with the ISIF announcement, the NPRF has undertaken a number of investments and initiatives under which NPRF capital will be invested on a commercial basis in Ireland. The NPRF has in particular committed to invest in infrastructure (€250 million) and Public-Private Partnership (PPP) projects (€118 million). Investment in social housing will fall within the remit of the ISIF so long as it is commercial in nature.
The Government is also taking a number of actions with respect to the provision of social housing which are detailed in the recently-published Construction Strategy. The National Asset Management Agency (NAMA) has cooperated actively with the Department of the Environment, Community and Local Government and with the Housing Finance Agency in seeking to match the residential stock controlled by its debtors and receivers with the requirements for social housing.
49. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Question No. 127 of 1 July 2014, his views on whether a decision was reversed to raise the threshold for the acquisition of eligible loans by the National Asset Management Agency from Bank of Ireland and Allied Irish Banks on 28 November 2010, the estimate being that NAMA would acquire an additional €16.6 billion of loans with individual values of less than €20 million from the two banks; and if the statement in April 2011 that the transfer of funds below €20 million representing impaired assets from the banking system to NAMA will not now take place amounted to a reversal of this decision. [29977/14]
View answerAt the end of the term of the previous Government, there were discussions about moving the sub-€20 million loans in AIB and Bank of Ireland to NAMA, in the context of the Programme of Financial Support for Ireland. However, when the current Government took office, discussions were held with the Central Bank and the European Commission and it was agreed that the loans of €20 million or less in the two banks would remain with the banks and were incorporated into the 2011 PCAR exercise. The decision to raise the threshold from €5 million to €20 million for the transfer of loans from AIB and Bank of Ireland to NAMA reduced the total volume of NAMA eligible loans by €6.6 billion.
50. Deputy Stephen S. Donnelly asked the Minister for Finance further to Parliamentary Questions Nos. 109 and 125 of 1 July 2014, when he stated that we have successfully negotiated the promissory notes transaction, the role our partners in Europe had in those negotiations; if it extended beyond the European Central Bank noting that the swap between promissory notes and sovereign bonds had taken place; and if he will make a statement on the matter. [29978/14]
View answerThe successful swap of promissory notes into bonds was a significant landmark and contributed to enhancing our debt sustainability by putting the funding on a more secure basis. Before moving to this new arrangement, we consulted with our EU partners. These consultations should be seen in the context of our on-going effort to enhance our debt sustainability and the dialogue which we maintain with our partners on a range of issues. We have excellent relations with our partners and we engage on an on-going basis. It should be noted, however, that EU member states did not have a role in approving the arrangement. The Governing Council of the European Central Bank unanimously noted the arrangement.
51. Deputy Seán Ó Fearghaíl asked the Minister for Finance if he will ensure that a HPL1 form is issued to a person (details supplied) in County Kildare; and if he will make a statement on the matter. [29992/14]
View answerI have been advised by the Revenue Commissioners that Form HPL1 was received from the person concerned on 18th June 2014. The application has now been processed. Certified Form HPL1 issued to the person concerned on 7th July 2014.
52. Deputy Emmet Stagg asked the Minister for Finance if he will review the maximum loans permitted to members of restricted credit unions to reflect the needs of members to source loans for home improvements and car loans in view of the continuing improvements in the economy and evidence provided by the Irish League of Credit Unions to his Department on the negative impact the maximum loan limits are having on the operation of credit unions. [30026/14]
View answer53. Deputy Emmet Stagg asked the Minister for Finance if he will review the section 35 restrictions on credit unions with a view to relaxing the one-year freeze on the granting of further credit to members where their loan has been rescheduled, in view of the continuing improvements in the economy and evidence provided by the Irish League of Credit Unions to his Department on the negative impact the maximum loan limits are having on the operation of credit unions. [30027/14]
View answerI propose to take Questions Nos. 52 and 53 together.
Credit Unions have an important role to play in providing credit in local communities around the country. Acting as the independent regulator, the Registrar of Credit Unions at the Central Bank has applied lending restrictions to some credit unions. I have been informed that these restrictions are viewed as short term in the majority of cases and are imposed as a means of allowing a credit union to address identified concerns as quickly as possible. Where lending restrictions are imposed they tend to take the form of a restriction on individual loan size or on commercial lending activity and in some cases, a limit on the total lending permitted each month.
At this time fewer than 10% of all credit unions have a restriction in place which limits the total amount of lending within the month, while close to 40% of all credit unions have a restriction on commercial lending activity. Currently, the average loan rate in the sector is just over €6,000 and only about a dozen individual credit unions have lending restrictions that limit the amount loaned to less than €10,000. This ensures that the vast majority of credit unions can continue to make loans significantly greater than the average loan for the sector. The Registrar of Credit Unions has assured me that restrictions are reviewed on a regular basis.
Section 35(2) of the Credit Union Act 1997 permits a credit union to have up to 30% of its loan book outstanding for more than 5 years and up to 10% of its loan book outstanding for more than 10 years. Based on the most recent information provided by credit unions to the Central Bank in the December 2013 quarterly prudential returns, average lending over 5 years as a percentage of gross loans was some 11%, while average lending over 10 years as a percentage of gross loans was about 2%. These figures indicate that, in general, credit unions are currently well within the limits as set down in the 1997 Act.
On foot of recommendations from the Commission on Credit Unions, section 11 of the Credit Union and Co-operation with Overseas Regulators Act 2012 substantially amends section 35 of the 1997 Act. Section 11 will be commenced in tandem with new Central Bank regulations on lending, which are to be introduced as part of the tiered regulatory approach recommended by the Commission. The Central Bank has recently completed the first of its consultation processes on the tiered regulatory approach and is considering the views submitted by credit unions and others. It is planning further consultation with the sector and a regulatory impact assessment.
I have, on a number of occasions, highlighted the Government's recognition of the important role of credit unions as a volunteer co-operative movement in this country and also the importance of getting lending going in the economy. However, the issue of lending needs to be constructively considered in order to ensure a viable credit union sector into the future.
