Written Answers Nos. 159-185
159. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the progress to date in respect of determination of application for domiciliary care allowance in the case of a person (details supplied) in County Meath; and if she will make a statement on the matter. [34724/14]
View answerThe person concerned was notified on the 15th September 2014 that her domiciliary care allowance application was successful and that the allowance has been awarded from 1st July 2014.
Payment of the allowance, along with arrears due, will be available in the nominated bank account on the 21st October 2014 and on the third Tuesday of each month thereafter.
161. Deputy Brendan Griffin asked the Tánaiste and Minister for Social Protection if she will permit recipients of carer's benefit to receive the household benefit package; and if she will make a statement on the matter. [34738/14]
View answerThe household benefits package comprises the electricity/gas allowance (€35 per month) and the free television licence scheme (€160 per annum). From 2015 it will also include a quarterly water support payment of €25. The household benefits package is paid to some 411,000 customers, with expenditure estimated at €230 million for 2014.
The household benefits package was envisaged as a way of providing some additional support for those who are elderly or on long-term welfare payments.
As carer’s benefit is not a long-term scheme, household benefits are not payable. I am not in a position to consider extending the household benefits scheme beyond the current group of qualifying payments.
163. Deputy Jerry Buttimer asked the Tánaiste and Minister for Social Protection if she will review the Social Welfare Act 2009 and examine the possibility of reversing the impact of the Act on the Irish aviation superannuation scheme deferred members; and if she will make a statement on the matter. [34802/14]
View answerWhile I am aware of the issues arising in relation to this scheme, you will appreciate that it is not appropriate for me to comment on developments relating to a particular pension scheme as these are a matter for the management of the company and the trustees of the pension scheme.
You will be aware that a number of changes were made to the Pensions Act in recent years to assist both the employers and the trustees of defined benefit pension schemes respond to the funding difficulties encountered by many schemes at this time. The Pensions Act was amended in 2009 to broaden the options available to the trustees of a defined benefit pension scheme in any consideration of a restructure of scheme benefits under section 50 of the Act to include the benefits of deferred scheme members and post retirement increases in pension benefits. Prior to the 2009 Act, only the benefits of active scheme members could be considered in a restructure of scheme benefits. The Social Welfare and Pensions (No. 2) Act 2013 further extended the options available to the trustees of a scheme to include a portion of benefits payable to pensioners.
These changes essentially provide for the sharing of the risk of scheme underfunding across all scheme members. The issue of how these changes might be applied is a matter for the trustees of a scheme who are required under trust law to act in the best interests of all scheme beneficiaries.
There are no plans to review this legislation further.
164. Deputy Patrick O'Donovan asked the Tánaiste and Minister for Social Protection her plans to extend eligibility to community employment schemes for those in part-time employment, in view of the fact that without additional work skills many cannot secure full-time employment or increase chances of more opportunities; and if she will make a statement on the matter. [34806/14]
View answerThere are no plans to extend eligibility to community employment (CE) schemes for those in regular part-time employment, as the aim of community employment is to enhance the employability and mobility of long-term unemployed from the Live Register and other specified disadvantaged persons through work experience and training. A person can engage in limited part-time or casual work and still qualify for CE provided they have cumulative breaks off the Live Register for 30 days or less in the 12-month CE qualifying period. Persons who are in part-time employment can access other training supports and upskilling interventions via their local Education and Training Board, SOLAS or Skillsnet. Their local Intreo Office can provide advice on the options available.
165. Deputy Willie Penrose asked the Tánaiste and Minister for Social Protection the position regarding a social welfare appeal in respect of a person (details supplied) in County Westmeath in relation to the refusal of their application for invalidity pension; and if she will make a statement on the matter. [34831/14]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 22nd August 2014. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these papers have been received from the Department, the appeal in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.
The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.
167. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection the total number of new appointments made in her Department and those under her remit since March 2011 to date in 2014, with a breakdown of the grade to which they were appointed during the period. [35126/14]
View answerAs the Deputy will be aware there is currently a moratorium on recruitment across the civil and public service. Also, like all other Government Departments, the Department has to operate within an employment control framework (ECF) target determined by the Minster for Public Expenditure and Reform. Therefore, the only source available to the Department to fill critical vacancies is from redeployment and transfer of staff from other Government Departments and the wider Public Service.
As an exemption to the moratorium the Department received sanction to recruit externally to appoint Medical Assessors. In addition, a small number of Tánaiste and Minister of State’s Office staff appointed to the Department are classified as new entrants.
Tables 1 – 4 detail the permanent staff (posts) appointed to the Department and the Agencies for the years 2011 to 2014.
TABLE 1: EXTERNAL PERMANENT STAFF APPOINTED TO DSP
|
Category |
Grade |
2011 |
2012 |
2013 |
2014 |
Total |
|
Transfers & |
ASEC ** |
1.00 |
1.00 |
2.00 |
0.00 |
4.00 |
|
Redeployment |
PO |
3.00 |
1.00 |
1.00 |
0.00 |
5.00 |
|
|
Medical Assessor |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
|
AP |
6.60 |
3.00 |
4.00 |
0.00 |
13.60 |
|
|
AO |
2.00 |
0.00 |
0.00 |
0.00 |
2.00 |
|
|
HEO |
23.33 |
9.00 |
4.00 |
1.00 |
37.33 |
|
|
EO |
52.13 |
52.00 |
16.00 |
1.00 |
121.13 |
|
|
SO |
7.80 |
14.10 |
5.00 |
1.00 |
27.90 |
|
|
CO |
68.20 |
94.53 |
15.00 |
18.90 |
196.63 |
|
|
SVO |
1.00 |
3.00 |
0.00 |
0.00 |
4.00 |
|
|
Tánaiste's Special Advisor |
0.00 |
0.00 |
0.00 |
2.00 |
2.00 |
|
|
Tánaiste's Personal Assistant |
0.00 |
0.00 |
0.00 |
1.00 |
1.00 |
|
Minister’s Personal Secretary |
1.00 |
0.00 |
0.00 |
0.00 |
1.00 |
|
|
Min of State Personal Assistant |
0.00 |
0.00 |
0.00 |
1.00 |
1.00 |
|
|
|
Min of State Personal Secretary |
0.00 |
0.00 |
0.00 |
1.00 |
1.00 |
|
|
Total |
166.06 |
177.63 |
47.00 |
26.90 |
417.59 |
|
New Entrants |
Medical Assessor |
3.00 |
3.00 |
5.00 |
5.60 |
16.60 |
|
Minister’s Special Advisor |
2.00 |
0.00 |
1.00 |
0.00 |
3.00 |
|
|
|
Minister's Personal Assistant |
1.00 |
0.00 |
0.00 |
0.00 |
1.00 |
|
|
Minister's Personal Secretary |
0.00 |
1.00 |
0.00 |
0.00 |
1.00 |
|
Minister’s Civilian Driver |
2.00 |
0.00 |
0.00 |
0.00 |
2.00 |
|
|
|
Min of State Civilian Driver |
0.00 |
0.00 |
0.00 |
2.00 |
2.00 |
|
|
Total |
8.00 |
4.00 |
6.00 |
7.60 |
25.60 |
|
Grand Total |
|
174.06 |
181.63 |
53.00 |
34.50 |
443.19 |
** 1 A/Sec appointed in 2012, and 1 A/Sec appointed in 2013, both transferred in following promotion competition
TABLE 2: PERMANENT STAFF APPOINTED TO CITIZENS INFORMATION BOARD
|
Category |
Grade |
2011 |
2012 |
2013 |
2014 |
Total |
|
Transfers & |
PO |
0.00 |
1.00 |
0.00 |
0.00 |
1.00 |
|
Redeployment |
|
|
|
|
|
|
|
|
Total |
0.00 |
1.00 |
0.00 |
0.00 |
1.00 |
TABLE 3: PERMANENT STAFF APPOINTED TO PENSIONS AUTHORITY
|
Category |
Grade |
2011 |
2012 |
2013 |
2014 |
Total |
|
New Entrants |
PO |
1.00 |
0.00 |
0.00 |
0.00 |
1.00 |
|
|
AP |
3.00 |
0.00 |
1.00 |
0.00 |
4.00 |
|
|
HEO |
1.00 |
3.00 |
0.00 |
0.00 |
4.00 |
|
|
EO |
2.00 |
1.00 |
0.00 |
0.00 |
3.00 |
|
|
CO |
3.00 |
2.00 |
2.00 |
5.00 |
12.00 |
|
|
Total |
10.00 |
6.00 |
3.00 |
5.00 |
24.00 |
TABLE 4: PERMANENT STAFF APPOINTED TO PENSIONS
|
Category |
Grade |
2011 |
2012 |
2013 |
2014 |
Total |
|
Transfers & |
PO |
1.00 |
0.00 |
0.00 |
0.00 |
1.00 |
|
Redeployments |
AP |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
|
HEO |
1.00 |
1.00 |
0.00 |
0.00 |
2.00 |
|
|
EO |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
|
CO |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
|
|
Total |
2.00 |
1.00 |
0.00 |
0.00 |
3.00 |
168. Deputy Finian McGrath asked the Tánaiste and Minister for Social Protection the number of civil servants, public servants and semi-State employees in her Department on career break at the time of the Haddington Road agreement who lost their right to return to their old positions; of these, the number who have since been offered redeployment opportunities; the number who availed of suitable redeployment opportunities; the number who terminated their employment; the number who have been accommodated with supernumerary positions after being on redeployment lists of over one year; and if she will consider someone on a redeployment list eligible for benefits; and if she will make a statement on the matter. [35150/14]
View answerEntitlement to resume duty following a career break has always been subject to there being a fillable vacancy in the relevant organisation. In this regard the Haddington Road Agreement has had no direct impact on employees seeking to resume duty at the end of their career break. Since the commencement of the Haddington Road Agreement, other factors such as staffing level restrictions have impacted on the Department’s ability to facilitate the return to work of a small number of staff following the expiration of their career breaks.
Nine staff members were placed on the Redeployment Panel, as the Department was not in a position to facilitate their return to work when their career break ended. Two were subsequently facilitated in securing positions in the Houses of the Oireachtas. Two employees were re-employed in supernumerary positions in the Department. The remaining five employees have returned to positions within the Department.
Entitlement to schemes is based on the criteria of the scheme and is subject to the qualification conditions. Each case is decided upon by a Deciding Officer.
170. Deputy Noel Coonan asked the Tánaiste and Minister for Social Protection when an application for domiciliary care allowance will be finalised in respect of a person (details supplied) in County Tipperary; and if she will make a statement on the matter. [32904/14]
View answerThe person concerned was notified on the 24th June 2014 that his domiciliary care allowance application was successful and that the allowance has been awarded from 1st March 2014.
The first payment of the allowance, along with arrears due, issued on 15th July 2014.
171. Deputy Noel Coonan asked the Tánaiste and Minister for Social Protection the position regarding the procurement of third party providers of employment services for the JobPath programme which had a deadline of 28 February 2014 for the receipt of tenders; if the tender evaluation process has been completed; the numbers of tenders that were received nationally and in each area; the tender applications that were successful in each area; and if she will make a statement on the matter. [32975/14]
View answerThe process of evaluating these tenders is a confidential process and is being conducted in accordance with EU and national public procurement rules. As a result, no information in relation to the tenders or tenderers will be released during the process.
172. Deputy Ruth Coppinger asked the Minister for Finance if the forthcoming water charges will be chargeable to VAT, and if so at what rate, or will they be zero rated, or exempted; and if he will make a statement on the matter. [33011/14]
View answerThe supply of water by local authorities and Irish Water is exempt from VAT. This VAT exemption applies to all supplies of water, including supplies to domestic households, businesses and others.
Ireland's long standing VAT exemption for the supply of water is currently contained in paragraph 14(2) of Schedule 1 to the VAT Consolidation Act 2010. The exemption is based on a derogation from EU VAT law contained in Article 371 and Annex X of the EU VAT Directive.
173. Deputy Michael Healy-Rae asked the Minister for Finance his views that greater effort must be invested by Government agencies to reduce black market activity including tobacco smuggling and illicit fuel laundering and that increased surveillance and longer jail terms should be considered; and if he will make a statement on the matter. [33063/14]
View answerI am very mindful of the unfair competitive advantage to be gained by those businesses who operate in the shadow economy thereby creating an unlevel playing field for tax compliant businesses and undermining the orderly functioning of the State.
Shadow economy activity is not just confined to illicit activity such as tobacco smuggling, oil laundering and counterfeiting but also ranges from businesses engaging in illegal practices (much of which are facilitated within the cash economy) such as suppressing details of some sales and purchases, keeping certain cash payments 'off the books' and paying employees under an 'off the books' arrangement to individuals doing 'nixers' either in addition to their normal taxed employment or whilst also claiming Department of Social Protection payments.
I am advised by the Revenue Commissioners that tackling shadow economy activity, including combating the illegal trades in tobacco, cigarettes, alcohol and fuel is, and will continue to be, a high priority for them.
Interception of illicit tobacco products, alcohol and fuel is achieved through a combination of risk analysis, profiling and intelligence and the screening of cargo, vehicles, baggage and postal packages, as appropriate. Revenue officers also target the illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private or commercial premises. Action against the illicit trade in mineral oils includes measures to detect and shut down plants illegally laundering marked mineral oil, to detect illicit products in transit and seize both the products and the vehicles transporting them, and to prevent the sale of illicit products.
There is extensive cooperation with An Garda Síochána in combating these illicit trades, and the relevant agencies in the State also work closely with their counterparts in Northern Ireland, through cross-border groups on tobacco and oils enforcement, to target the organised crime groups that are responsible for large proportions of these illicit markets. In addition, cooperation takes place with other revenue administrations and with the European Anti-Fraud Office, OLAF, in the ongoing programmes at international level to tackle these forms of crime.
Revenue's work against the illegal tobacco trade includes a range of measures designed to identify and target those who are engaged in the supply or sale of illicit products, with a view to seizing the illicit product and prosecuting those responsible. This multi-faceted strategy includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, the use of analytics and detection technologies and ensuring the optimum deployment of resources at points of importation and within the country.
Considerable success is being achieved in Revenue's action against the illicit trades. The total seizures of illicit cigarettes, alcohol products and mineral oils, in each of the last three years are set out in the following table:
|
YEAR |
Cigarettes |
Alcohol |
Oil |
||
|
- |
Quantity (Million) |
Value (€m) |
Quantity (Litres) |
Value (€m) |
Quantity (Litres) |
|
2013 |
40.8 |
18.9 |
55,755 |
1.5 |
874,882 |
|
2012 |
95.6 |
43.3 |
33,059 |
0.7 |
1,113,142 |
|
2011 |
109.1 |
46 |
34,040 |
0.5 |
1,044,830 |
The table shows also the estimated value of the seizures of cigarettes and alcohol products. That information is not available in respect of mineral oil products.
Seizures this year include one of some 32.2 million cigarettes, as well as 4.5 tonnes of water pipe tobacco, from a vessel at Drogheda Port. This was the largest seizure to date in Europe this year, and was the result of an intelligence-led operation targeting the activities of an international organised crime group headed up by Irish and UK nationals and based in Europe. Action against the illicit oil trade in the period since 2011 has led to the detection and shutting down of 30 oil laundries and to seizure of some 3 million litres of illicit fuel. In addition, more than 120 filling stations were closed for trading without a licence or for breach of licence conditions.
Legislative action has been taken over recent years to ensure that Revenue has the requisite powers to respond effectively to the problem of the illegal tobacco trade:
- the Finance Act 2012 clarified the legal basis for Revenue officers to open and examine the contents of postal and courier packets that are reasonably believed to contain untaxed excise products;
- the Finance Act 2013 introduced new offence and forfeiture measures relating to the illicit production of tobacco, including offences of involvement with illicit tobacco production, knowingly dealing in or delivering any illicit tobacco product and keeping materials and equipment for the purposes of illicit production;
- provision was made also for the forfeiture of any equipment or materials, including unmanufactured tobacco, used for illicit production;
- the Finance Act 2013 also strengthened the offence provisions relating to the sale or delivery of unstamped tobacco products;
- the Finance (No. 2) Act 2013 provided that a person suspected of an offence of dealing in, or with, unstamped tobacco products must provide information to a Revenue Officer or a Garda and may be required to present any tobacco product concerned for examination, and makes provision for search by a Revenue Officer or Garda of any bag or other receptacle that he or she reasonably believes to contain tobacco products that are concerned in the offence.
As well as those changes to primary law, the State, to give effect to EU Directive 2008/118/EU, introduced a quantitative restriction, with effect from 1 January 2014, on the number of cigarettes that may be brought into the State for personal use by individuals travelling from Bulgaria, Croatia, Hungary, Latvia, Lithuania and Romania. The Excise Duty on Cigarettes (Quantitative Restrictions) Order 2013 (S.I. No. 553 of 2013) provides that the number of tax-paid cigarettes that may be brought into Ireland for personal use by individuals travelling from those Member States, without payment of further excise duty in Ireland, is restricted to 300. Anyone with cigarettes in excess of that quantity must declare them to a Revenue Officer and pay the appropriate excise duty. This restriction will remain in place until 31 December 2017 or until such time as the particular Member State has achieved the required EU minimum tax levels, whichever is the earlier.
In response to illicit fuel trading, Revenue has implemented a comprehensive strategy to tackle the problem through enhanced supply chain controls, the acquisition of a more effective fuel marker and continued robust enforcement action. Supply chain controls have been enhanced progressively since 2011 with the objective of reducing the capacity of criminals to source marked diesel for laundering or to get laundered fuel onto the market. The supply chain controls introduced include new licensing conditions for all fuel traders and the introduction from January 2013 of a requirement that all licensed fuel traders, whether dealing in road fuel or marked fuel, make detailed monthly electronic returns to Revenue of their fuel transactions. Revenue is using this data to identify suspicious transactions and patterns of distribution for investigation. Revenue has also intensified its targeting, in co-operation with other law enforcement agencies on both sides of the border, of enforcement action against suspected fuel laundering operations.
To support further the integrity of the distribution system and minimise the risk of fraud, I introduced a provision in the Finance (No. 2) Act 2013 that will make a supplier who is reckless in supplying rebated fuel for a use connected with excise fraud liable for the duty at the standard rate of tax. This new provision will strengthen Revenue's hand in dealing with those traders supplying rebated fuel recklessly to dubious customers and will provide a further disincentive to such activity.
Revenue has published guidelines for mineral oil traders which will assist them in identifying and avoiding such transactions.
In addition to the measures implemented to date, Revenue and Her Majesty's Revenue and Customs in the UK completed an Invitation to Make Submissions process to identify a new fuel marker and it is expected that a new marker will be introduced in both jurisdictions early in 2015, following consultation with the oil industry and other stakeholders.
Revenue works very closely with fuel sector representative bodies in tackling the problem and they have been very supportive of the measures introduced to combat fuel laundering. The evidence available to Revenue, in terms of feedback from the legitimate trade and increased consumption of road diesel, indicates that this strategy has been very effective.
The Revenue Commissioners will maintain their commitment to acting against all stages of the supply chains for illicit oil and tobacco products and will continue to make every effort to ensure that those involved in them are brought to account before the Courts for their criminal activities.
I understand that the Revenue Commissioners continuously review their methodologies and their legislative requirements and where necessary I will of course, give careful consideration to any proposal that might be put to me in that regard.
Notwithstanding such work, Revenue is of the view that the interests of compliant businesses is best served by them playing their part in combating shadow economy activity by knowing their suppliers, not engaging in shadow economy activity themselves, producing (including anonymously) to Revenue or to other relevant State agencies - either directly or through the Hidden Economy Monitoring Group - information relating to those persons who are involved in shadow economy activity in their geographical area. Such information will enable Revenue (and other relevant State agencies) make best use of their resources in reducing shadow economy activity. In that regard, Revenue has recently launched a dedicated section of its website specifically on the shadow economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices.
The Deputy will be aware that the Hidden Economy Monitoring Group, chaired by the Revenue Commissioners, is a multi-agency group comprising of representatives from business groups, trade unions and State agencies who have a common commitment to tackle the shadow economy. The State agencies include Revenue, the Department of Social Protection and the National Employment Rights Authority (NERA).
Finally, if the Deputy is aware of, or has specific information relating to, shadow economy activity, he should pass that information to my officials who will ensure it is sent to the relevant State agency for examination.
174. Deputy Denis Naughten asked the Minister for Finance his views on the situation regarding Setanta Insurance and the MIBI; the steps he is taking in view of this issue; and if he will make a statement on the matter. [33391/14]
View answer214. Deputy Denis Naughten asked the Minister for Finance further to Parliamentary Question No. 58 of 29 May 2014, if he will provide an update on same in view of recent developments in relation to the MIBI; and if he will make a statement on the matter. [33390/14]
View answerI propose to take Questions Nos. 174 and 214 together.
In the immediate aftermath of the announcement of the liquidation of Setanta, my officials were informed by Insurance Ireland that MIBI had indicated that they intended to accept all third party claims. My statements in the Dáil reflected this position which was accurate based on the information available at the time. However, MIBI obtained a legal opinion and, having considered it, they advised the Minister for Transport, Tourism and Sport in late July that the 2009 agreement with him does not require the MIBI to satisfy awards against drivers covered by a policy of insurance where the insurer is unable to pay all or part of an award because of insolvency.
Jointly with the Minister for Transport, Tourism and Sport, I have obtained legal advice on this matter from the Attorney General. Having considered the Attorney General's advices, I intend to proceed on the basis that MIBI will not be playing a role in compensating claimants due awards under Setanta policies.
With regard to the general position with the Setanta liquidation, you will appreciate that a liquidation of an insurance company is a legally complex and time consuming process. In general terms, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim. However, it could take several years for a particular case to be settled. These are factors that the Setanta Liquidator is currently examining in order to estimate the cost of claims, and the extent to which claims can be met in the Setanta liquidation.
The Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in cases where it is unlikely that claims can be met otherwise than from the Fund. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of Accountant of the High Court. In view of the clarifications in relation to the MIBI position, it is a matter for the Office of the High Court Accountant to finalise arrangements for processing ICF claims.
My officials continue in discussions with the High Court and with the Setanta Liquidator with a view to achieving more certainty in relation to the standing of claimants as soon as possible.
175. Deputy Michael Healy-Rae asked the Minister for Finance the position regarding payment from the Motor Insurance Bureau of Ireland in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [33439/14]
View answerThe Motor Insurance Bureau of Ireland (MIBI) is a non-profit-making organisation registered in Ireland. All insurance companies underwriting motor insurance in this county must, by law, be members of MIBI and contribute to the funding of claims in proportion to their market share. The principal role of MIBI is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. This is regulated under the terms of an Agreement between the MIBI and the Minister for Transport, Tourism and Sport.
In the immediate aftermath of the announcement of the liquidation of Setanta, my officials were informed by Insurance Ireland that MIBI had indicated that they intended to accept all third party claims. My statements in the Dáil reflected this position which was accurate based on the information available at the time. However, MIBI obtained a legal opinion and, having considered it, they advised the Minister for Transport, Tourism and Sport in late July that the 2009 agreement with him does not require the MIBI to satisfy awards against drivers covered by a policy of insurance where the insurer is unable to pay all or part of an award because of insolvency.
Jointly with the Minister for Transport, Tourism and Sport, I have obtained legal advice on this matter from the Attorney General. Having considered the Attorney General's advices, I intend to proceed on the basis that MIBI will not be playing a role in compensating claimants due awards under Setanta policies.
All Setanta claims, including those which were settled but not paid out by Setanta, now fall to be processed as part of the Setanta liquidation. With regard to the general position with the Setanta liquidation, you will appreciate that a liquidation of an insurance company is a legally complex and time consuming process. In general terms, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim. However, it could take several years for a particular case to be settled. These are factors that the Setanta Liquidator is currently examining in order to estimate the cost of claims and the extend of cover to meet these claims in the Setanta liquidation.
The Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in cases where it is unlikely that claims can be met otherwise than from the Fund. Under Section 3.6 of the Insurance Act 1964 (as amended) claims by bodies' corporate or unincorporated bodies are not covered by the ICF except where there is a liability to or by an individual. In addition, all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice and it is a matter for the Office of the Accountant of the Courts of Justice to finalise arrangements for processing ICF claims.
My officials continue in discussions with the High Court and with the Setanta Liquidator with a view to reaching certainty in relation to the status of claimants as soon as possible.
176. Deputy Anthony Lawlor asked the Minister for Finance in order to facilitate persons in receipt of Department of Social Protection payments who wish to pay their local property tax in full during the year, if he will consider allowing more than one Department of Social Protection payment to be considered for the deduction in view of the fact that most payments are €188 per week and currently only €2 is allowed to be deducted without falling below the €186 threshold, yet the individual may be receiving other payments such as living alone allowance, fuel allowance and so on which increases their weekly payments; his views that it is therefore not possible for social welfare recipients to pay their LPT in full at just €2 per week, unless their house is valued at the very lowest level, and that every effort should be made to aid those who want to clear the charge without a lump sum owing at the end of the year which is currently happening; and if he will make a statement on the matter. [33956/14]
View answerI have some sympathy with the matter raised by the Deputy, but as I have informed the House on a number of occasions, the concept of a 'de minimis' amount, which is linked to the supplementary welfare allowance, is enshrined in section 189 of the Social Welfare (Consolidation) Act 2005. It was considered at the time of the introduction of Local Property Tax (LPT) that it was not appropriate to change the law in this regard because the supplementary welfare allowance rate is deemed by the Department of Social Protection to be a minimum income rate to meet basic needs.
The question of allowing reckoning of all social welfare payments when calculating the 'de minimis' is a matter for my colleague the Minister for Social Protection.
However, as I previously advised in my reply to Parliamentary Questions 59 (27613/14) and 67 (27777/14) on 26 June 2014, given the rates of DSP payments, it is very important that recipients are aware that the LPT legislation provides for full and partial (50%) deferrals of the tax within certain specified thresholds. A person whose only income is a social welfare payment would be entitled to apply for deferral.
177. Deputy Seán Kyne asked the Minister for Finance the progress to date at achieving the objective of assessing technology and innovation opportunities in the financial sector, including skills availability and educational requirements as contained in the Action Plan for Jobs and with particular regard to workers in the banking sector and the challenges presented by the restructuring and or downsizing of some financial institutions; and if he will make a statement on the matter. [34220/14]
View answerUnder the Action Plan for Jobs, the Clearing House Group, under the auspices of the Department of An Taoiseach, initiated a series of working groups to examine particular aspects of international financial services in Ireland. One such working group composed of private and public body representatives, including the IDA and EI, has been examining the so-called Fintech sector which employs an estimated 4,000 people in Ireland - and the opportunities that it offers the country in the future, in particular with regard to increasing the number of people employed in the fintech sector; many of the leading financial institutions with technology operations in Ireland are actively recruiting in this sector which has been identified as an area for growth. A preparatory report has been examined and will now be further developed by that working group with the involvement of the newly appointed Minister for International Banking (including the IFSC). In addition, there has been a significant focus on establishing supports for entrepreneurs from the Financial Services industry, by working with the start up ecosystem to set up pre accelerators and accelerators. One such initiative is the NDRC "Fintech Pre-Accelerator" which was set up earlier this year to provide an early stage support structure for entrepreneurs. Sponsors of the initiative included Enterprise Ireland, Bank of Ireland, State Street and Mediolanum.
178. Deputy Clare Daly asked the Minister for Finance the measures to be taken to prevent the ongoing overcharging and imbalance in the car insurance industry which disproportionately discriminates against younger men. [34649/14]
View answerOn the 1st March 2011 the European Court of Justice declared invalid, with effect from 21 December 2012, Article 5(2) of the council directive 2004/113/EC of 13 December 2004. The effect of this ruling is that all private insurance contracts concluded for the first time from 21 December 2012 as well as any agreements between parties to extend contracts from that date are prohibited by law from differentiating by gender on price or benefits. The 2012 amendment to the Equal Status Acts provides in Irish law for the mandatory introduction within the EU of unisex premiums and benefits in insurance.
While the exact movement in premiums following the introduction of the amendment is difficult to determine, the European Commission has indicated that it intends to monitor the evolution of the insurance market and of overall price levels in the years following the removal of the insurance derogation in December 2012.
179. Deputy Maureen O'Sullivan asked the Minister for Finance the status of the implementation of the living city initiative. [34723/14]
View answerMy officials met formally with representatives from the local authorities and other Government agencies on 31 January last. Since then we have had numerous fruitful contacts with the local authorities and their cooperation in this matter is much appreciated.
My officials have also been in contact with the EU Commission on the application for State Aid approval for the Initiative and this process is expected to be concluded shortly.
I would expect that I will be in a position to make an announcement in the near future.
180. Deputy Maureen O'Sullivan asked the Minister for Finance the reason Ireland voted against UN Resolution, Item 14 A/68/L.57/Rev.1, toward the establishment of a multilateral legal framework for sovereign debt restructuring processes; and if he will make a statement on the matter. [34804/14]
View answerIreland recognises the importance of an appropriate international agreement regarding sovereign debt restructuring due to its significant economic, social and financial implications.
In common with other EU Member States, Ireland was unable to support the recent UN resolution on a multilateral legal framework for sovereign debt restructuring, and this position was based on shared concerns regarding the substance of the resolution and the process followed in proposing it, particularly with respect to the pace at which this complex proposal was launched, the timing of the proposal at the end of a session of the General Assembly, and the pre-determined outcome which it prescribed.
Together with many other UN member states Ireland is actively engaged in ongoing processes that address, and seek to identify solutions to, the issue of sovereign debt restructuring. Ireland considers that the work being undertaken in other fora such as the IMF and the upcoming third International Conference on Financing for Development in 2015 offer more appropriate and established means to progress dialogue on the matter.
Ireland has always had concern for developing countries experiencing debt problems. In this regard, Ireland continues to support processes aimed at resolving these problems through progressing dialogue, in the most appropriate forum and using the most appropriate and effective mechanisms, to best support these countries.
I would like to draw the Deputy's attention to the statement made on behalf of the European Union to the General Assembly of the United Nations in this matter, which is available at http://eu-un.europa.eu/articles/en/article_15455_en.htm.
181. Deputy Michelle Mulherin asked the Minister for Finance the number of boats-ships searched for drugs at harbours on the Mayo coastline in the years 2012, 2013 and January to June 2014; and if he will make a statement on the matter. [32903/14]
View answerI am advised by the Revenue Commissioners that harbours and inlets along the Co. Mayo coastline are monitored on a regular basis. The risk of smuggling of all types, including smuggling of drugs, using boats/ships is fully appreciated by Revenue and is the subject of continuous assessment and risk analysis. The decision on whether or not to board and search a vessel is based on risk analysis, profiling, evaluation of national and international smuggling trends, journey frequency, routes and other risk indicators. It can also be a result of specific intelligence. Vessels with origins and destinations with a high risk rating attract particular attention.
While vessels are boarded and searched from time to time to check for any excisable products or prohibited items, including drugs, it is not appropriate for the Revenue Commissioners to publish precise details of such enforcement activities as this could prejudice current or future operations. The Commissioners further advise me that crew members on such vessels who enter the State are subject to the same checks as any other arrivals, including individual profiling, and are liable to be checked by Revenue Customs staff and screened by a drug, cash or tobacco detector dog team.
Revenue enforcement officers undertake regular patrols and physical checks at harbours and piers. Revenue officers liaise with local Gardai, Harbour Masters and the Coastguard regarding drugs and with trade interests in respect of fiscal products. This work is supplemented by Revenue's Customs Drug Watch Programme, which incorporates a coastal reporting mechanism. This allows members of the public, maritime and local communities to report, in confidence, suspect or unusual movements at sea or around the coast through a confidential 24/7 free phone facility. All sightings and reports received are actively pursued and brought to a conclusion.
Revenue deploys two Customs Cutters, the RCC Suirbhéir and the RCC Faire, to patrol the coastline and undertake maritime intelligence gathering duties. These vessels support teams of land-based enforcement officers involved in anti-smuggling duties. The cutters are deployed to cover potential high-risk areas along the coastline. Patrols of the coastline by the Cutters are kept under constant review to take account of available intelligence and emerging smuggling trends. Revenue works proactively with An Garda Síochána and the Naval Service as part of the Joint Task Force on Drugs Interdiction. Revenue also uses its contacts within international law enforcement agencies to proactively profile drug trafficking networks.
I can assure the Deputy that the Revenue Commissioners attach the highest priority to combating the smuggling of controlled drugs and are committed to playing an active role, in conjunction with other relevant agencies, in working against this criminal activity and those responsible for it.
182. Deputy Martin Ferris asked the Minister for Finance if there is an obligation to ensure that mortgage companies who buy loans from regulated mortgage companies are in turn regulated. [32928/14]
View answer275. Deputy Stephen S. Donnelly asked the Minister for Finance his plans to review the management of Irish mortgages which have been sold by Irish financial institutions to non-traditional mortgage providers, most of which are not regulated by the Central Bank of Ireland. [34256/14]
View answer276. Deputy Stephen S. Donnelly asked the Minister for Finance the consideration he has given to the operation of non-traditional mortgage providers, most of which are not regulated by the Central Bank of Ireland, which have acquired Irish mortgages and which traditionally pursue annual returns on investment of in excess of 20%; and if he will make a statement on the matter. [34257/14]
View answerI propose to take Questions Nos. 182, 275 and 276 together.
I, as Minister for Finance, am committed to bringing forward legislation that protects consumers whose mortgages are sold to unregulated entities. The Government has reiterated this commitment on several occasions. In July and August of this year, my Department ran a public consultation seeking views on its proposed legislation to protect consumers whose loans are sold to unregulated entities.
The Department of Finance received 18 submissions from a range of respondents from the financial services industry, consumer groups, public representatives and individuals and other stakeholders. Officials in my Department are carefully considering the submissions and it is anticipated that legislation will be published by the end of this year.
183. Deputy Gabrielle McFadden asked the Minister for Finance if he is considering the application of 23% VAT to herbal teas in the next budget; and if he will make a statement on the matter. [32955/14]
View answerTea and preparations derived from tea, when supplied in non-drinkable form, are liable to VAT at the zero rate. I consider it appropriate that the zero rate should also apply to herbal teas and fruit infusions and I intend to amend the VAT Consolidation Act to this effect.
184. Deputy Michelle Mulherin asked the Minister for Finance the proposals he has or if he will consider changing the National Asset Management Agency's policy of property disposal, that is to reverse the policy of selling large blocks of property en masse and to allow the sale of individual units as part of an initiative to make more housing available for purchase and rent, particularly in Dublin city; and if he will make a statement on the matter. [32989/14]
View answer205. Deputy Arthur Spring asked the Minister for Finance his views that the National Asset Management Agency should consider selling properties individually or in smaller groups as the demand for property grows in view of the fact that the need to sell to investment firms is dissipating in recent months as demand grows. [33290/14]
View answerI propose to take Questions Nos. 184 and 205 together.
The strong improvement in conditions in the Irish commercial and residential property markets over the past year created opportunities for NAMA to increase the flow of Irish property assets and loan sales to the market. Earlier this year, NAMA announced that, in line with its obligations under Section 10 of the NAMA Act, it considered that the best financial outcome for the State would be achieved through a managed process of accelerating disposals in an orderly way with the target of redeeming 80% of senior debt (a cumulative €24 billion) by end-2016. Following on from the Section 227 review of NAMA which was conducted by my Department, I endorsed NAMA's strategy of seeking to take full advantage of strong market conditions to reduce the contingent liability on taxpayers represented by NAMA's senior, State-guaranteed, bonds.
In that context, I am advised by NAMA that, in order to achieve its revised debt redemption targets, it must arrange for the sale not only of individual assets but also of portfolios of loans and property assets to investors. In addition to over 5,000 individual residential units that NAMA debtors and receivers have sold to date, assets will continue to be made available for sale, on an individual basis, to potential purchasers. NAMA's website includes a list of some 2,300 properties in Ireland which are either currently for sale or will shortly be offered for sale through receivers.
The Deputy should note that, where NAMA arranges for the sale of portfolios of apartments, these are typically rented to tenants and there is no question of such tenants being placed at any disadvantage as a result of the change of ownership. Indeed, it would not be fair or reasonable to displace tenants in order to offer the apartments for sale to purchasers as either individual units or as part of a portfolio. I would also point out that the purchasers of apartment blocks are usually large investors who tend to apply fully professional standards in their capacity as landlords.
185. Deputy John Deasy asked the Minister for Finance the number of applications that were successful under the start your own business exemption from income tax announced in the last budget; and the cost to the Exchequer. [32991/14]
View answerSection 6 of the Finance (No 2) Act 2013 introduced the Start Your Own Business initiative which provides an exemption from income tax for 2 years for individuals starting a new business where the individuals were previously long-term unemployed. The profits of such a business, up to a maximum of €40,000, are relieved from income tax in each year of the first two years of trading. This relief applies to new businesses commencing on or after 25 October 2013 and returns for the first year of trading will not, in general, be submitted until October 2015. Accordingly, there will be no information available to indicate the number of individuals who are availing of the relief until after that date.
