Written Answers Nos. 203-220
204. Deputy Finian McGrath asked the Minister for Finance if he will support a matter (details supplied) regarding employees of an Irish bank losing their jobs due to outsourcing of their division; and if he will make a statement on the matter. [37084/14]
View answerAs the Deputy will be aware under the Relationship Framework the State does not intervene in the day to day operations of the bank or their management decisions regarding commercial matters. AIB has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have been informed by AIB that there are no compulsory redundancies as a result of AIB s recent outsourcing activities.
205. Deputy Brian Walsh asked the Minister for Finance his plans to amend the Central Bank regulations governing the type of employment and financial history required by lending institutions; if lending institutions will be allowed to accept employment and financial history from financial institutions outside of the State, the purpose being to allow returning emigrants apply for mortgages and not have to wait for six to 12 months; and if he will make a statement on the matter. [37086/14]
View answerAt the outset, I must confirm to the Deputy that the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities. It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed position of mortgage holders.
The decision on whether or not to grant a mortgage to a borrower must remain a commercial decision for the lending institution concerned. It is important that each lending institution is allowed to assess properly and independently the risks that it is considering when deciding whether or not to approve a mortgage. Mortgage lending must comply fully with the regulatory requirements, both in relation to the financial institution itself and also the safeguarding of the borrower's interests.
However, I have been informed by the Central Bank that Chapter 5 of the Central Bank of Ireland's Consumer Protection Code 2012 (the Code) contains provisions that require regulated entities to gather and record sufficient information from a consumer prior to offering, recommending, arranging or providing a mortgage. This information must include details of the consumer's personal circumstances employment status and financial situation including, where relevant: income, savings, financial products and other assets, and debts and financial commitments (among other things).
Provision 5.6 of the Code provides that, prior to providing a mortgage to a personal consumer, a mortgage lender must either have had sight of all original supporting documentation evidencing the personal consumer s identity and ability to repay, or receive from a mortgage intermediary a signed declaration that such mortgage intermediary has had sight of all original supporting documentation evidencing the personal consumer's identity and ability to repay. A declaration signed by the personal consumer, (or his or her representative), certifying income and/or ability to repay is not sufficient evidence for these purposes.
Provision 5.7 of the Code provides that a regulated entity must assess the reasonableness of the information contained in the documentation submitted by a personal consumer in support of a mortgage application and take all reasonable steps to ensure that the documentation submitted is legitimate and authentic.
The Code also requires lenders to carry out an assessment of suitability to ascertain the personal consumer's likely ability to repay the debt, over the duration of the agreement.
The EU Mortgage Credit Directive on credit agreements for consumers relating to residential immovable property has been agreed and published. Article 18 of the Directive contains the obligation that Member States shall ensure that, before concluding a credit agreement that falls within the scope of the Directive, the creditor makes a thorough assessment of the consumer's creditworthiness. Work on the transposition of the Directive into national legislation has commenced. The above rules as they relate to the Directive will need to be reviewed as part of the transposition process. The Directive must be transposed by 21 March 2016.
206. Deputy John Paul Phelan asked the Minister for Finance the timeframe for when the Strategic Banking Corporation of Ireland will be operational; and if he will make a statement on the matter. [37096/14]
View answerThe Strategic Banking Corporation of Ireland (SBCI) has been established by the Government as a means of ensuring that SMEs in Ireland are provided with sufficient finance for growth. As the Deputy will be aware, the legislation enabling the establishment of the SBCI was passed by the Oireachtas prior to the Summer recess and the SBCI was incorporated as a company in September. The company is already operational with the immediate priorities being the finalisation of the funding arrangements for the company and establishing mechanisms to enable credit to flow quickly to the small business sector. This work is well advanced. Loan agreements with the international funders, KfW and the European Investment Bank, will be signed in the coming weeks. Following that, the SBCI will agree lending terms with traditional bank lenders and new credit providers from beyond the traditional bank sector allowing for the distribution of SBCI funding to the SME sector in Ireland on a prudent basis. I anticipate that the first SBCI funded loans to SMEs should be available for disbursement before the end of this year.
207. Deputy John Paul Phelan asked the Minister for Finance if there will be limits on the size of loans given by the Strategic Banking Corporation of Ireland; and if he will make a statement on the matter. [37097/14]
View answerThe Strategic Banking Corporation of Ireland (SBCI) has been established as a means of ensuring that SMEs in Ireland are provided with sufficient finance for growth.
In conducting its operations, the SBCI must adhere to EU State aid requirements. My officials have met with Commission State aid officials to ensure that the activities of the SBCI conform with the relevant State aid provisions of the EU Treaty. The initial operations of the SBCI can and will commence without the need for formal State aid approval or notification as the Commission is satisfied that the design of the initial product offerings being considered by the SBCI do not necessitate formal Commission assessment and approval as they will be covered by the Commission's "de minimis" State aid regulation. Given that this regulation allows for a cumulative benefit to SMEs of €200,000 over a three year period, the low interest rate applying to the SBCI funding will mean that loans of between €3 million and €4 million can be availed of in a given three year period under the "de minimis" regime. Central Bank of Ireland research indicates that 90% of outstanding loans to SMEs in Ireland are for amounts of less than €100,000. This same research also highlights that the original loan amounts drawndown by the SME's closely mirrors the profile of outstanding amounts, with again the vast majority of loans being for sums under €100,000. Consequently, the SBCI is satisfied that the "de minimis" regime will allow sufficient flexibility to cater for the financing application requirements of the vast majority of SMEs.
Beyond that, other State aid regulations such as the General Block Exemption Regulations (GBER) offer further flexibility for product design and the SBCI will, of course, seek formal State aid approval for bespoke SME financing schemes should that prove necessary.
208. Deputy Maureen O'Sullivan asked the Minister for Finance if his attention has been drawn to the threshold for the higher level of income tax rate of 41% which is calculated at earnings of €32,801 and over, which is by far the lowest threshold amount in the OECD, in view of the fact that many countries have a higher rate threshold of over €100,000, for example, and although Ireland's progressive tax system is to be commended, his views that this extremely low threshold is victimising the lower middle income earners who have been one of the most affected groups in society in recent budgets; his views that there is room for change with regard to the threshold amount; and if he will make a statement on the matter. [37098/14]
View answerThis Government, in recognition of the income tax burden shouldered by the Irish people, included a commitment in the programme for Government, not to increase income tax rates and to maintain the existing income tax credits and bands. I am glad to report that this commitment has been achieved. Furthermore, the Deputy will be aware that I am on record stating that I believe that the burden of income tax in Ireland is too high and that it is my intention to reduce it when the state of the public finances allows me to do so.
In this regard, the recent Government Statement of Priorities contains a commitment that in Budget 2015, a tax reform plan will be announced, to be delivered over a number of budgets, to reduce the 52% marginal rate of income tax on low and middle income earners, in a manner that maintains the highly progressive nature of the Irish tax system.
209. Deputy Finian McGrath asked the Minister for Finance the proportion of current illicit trade in the latest growth figures in view of the new European Union accounting procedures which were introduced here; and if he will make a statement on the matter. [37124/14]
View answerThe European statistical agency, Eurostat, has agreed recommendations on the estimation and recording of illegal economic activities in recent years and, with effect from September 2014, requires Member States to include estimates for illegal economic activities in the National Accounts. Section 13 of the 1993 Statistics Act provides that the Director General of the Central Statistics Office (CSO) has sole responsibility for, and is independent in, the exercise of the functions of deciding the statistical methodology and professional statistical standards used by the Office, as well as the content of statistical releases and publications issued by the Office. Of course there are considerable challenges facing the CSO in accurately measuring illicit activities. I am informed by the CSO that statisticians use any available data that can produce a repeatable estimate for these activities over time. The illegal nature of these activities makes it particularly difficult to estimate their level and value. Consequently, the estimation methods used can only be expected to deliver approximations of the actual levels and value of activity. Data are obtained from a range of sources, including the Gardaí and organisations involved in the welfare of prostitutes or drug addicts. International research in these matters is also reviewed by the CSO.
Estimates of the impact of the inclusion of these activities are available on the CSO s website (see link below) and were first included in the national income and expenditure release for early July. They have been estimated at around 0.7 per cent of GDP over the last number of years. While the inclusion of these activities increases the estimates of the level of GDP they do not necessarily have an impact on year-on-year growth rates. http://www.cso.ie/en/newsandevents/pressreleases/2014pressreleases/implementingnewinternationalstandardsfornationalaccountsandbalanceofpaymentsstatistics/
210. Deputy Maureen O'Sullivan asked the Minister for Finance if his attention has been drawn to the significant debts facing the one third of graduating doctors who obtain their qualification through the graduate route and that these medical students can incur debts of up to €100,000; and his views on providing tax credits to doctors so they can manage their debts, have a good standard of living and not be drawn to other countries for better paid jobs, as is currently happening. [36488/14]
View answerThe graduate entry programme provides undergraduate medical education of four years duration and has been developed to produce medical graduates with the ability to successfully undertake an internship and thereafter to gain full registration with the Medical Council. The programme is supported by a combination of student fees, State funding and other income.
While in this case the fees could be considered high, in the majority of cases where third level tuition fees are payable they are at much lower levels. In addition, those participating in the programme must already have acquired an undergraduate degree, the fees for which would have been covered by the State in the vast majority of cases.
I would point out that tax relief at the standard rate of 20% is available in respect of qualifying fees paid by an individual for a third level education course, including a postgraduate course.
Qualifying fees mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the "student contribution". No other fees e.g. administration fees, examination fees, capitation fees, qualify for tax relief. Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees. A claim for relief may be made in respect of a number of students.
In making a claim for relief for the tax year 2014, the maximum amount of fees that can qualify for the relief is €7,000 per student, but an amount set out in the legislation must be disregarded from each claim (whether in respect of one or more students). Where a claim for relief includes fees paid on behalf of at least one full-time student, the disregard is €2,750. Where a claim for relief includes fees solely paid on behalf of a part-time student or part-time students, the amount disregarded is €1,375. Thus, for example, an individual undertaking a graduate entry medical course on a full-time basis, where tuition fees of €15,000 per student apply, would attract relief of €850 made up as follows:
|
- |
€ |
|
Tuition fees |
€15,000 |
|
Capped at |
€7,000 |
|
Less |
€2,750 |
|
€4,250 @ 20% = €850 |
It is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, as with all tax reliefs, the introduction of tax relief for loans taken out to pursue the graduate entry medical programme will be considered in the context of the forthcoming Budget and Finance Bill and any announcements will be made on Budget Day.
211. Deputy Finian McGrath asked the Minister for Finance if he will consider the proposals in respect of carers and the vital service they provide to the community and health system with the upcoming budget (details supplied); and if he will make a statement on the matter. [37177/14]
View answerAs the Deputy will be aware, it is not the practice of the Minister for Finance to discuss the details of measures which may be under consideration as part of the Budget and Finance Bill.
However I can advise him that to date my Department has received in excess of 500 Pre-Budget Submissions from a wide range of groups and individuals. These are being considered by the relevant officials in the context of Budget and Finance Bill preparation.
212. Deputy Seán Kyne asked the Minister for Finance if he will provide in tabular form all of the State agencies, bodies, organisations and working groups under his Department's remit; the core duties and functions of same; the number of staff at same; the budget of each for 2013 and proposed budget for 2014; the date of establishment of the agencies or organisations; and the legislation, primary or otherwise, from which they derive their powers. [37205/14]
View answerThe Following is the information requested by the Deputy.
|
Company Name |
Strategic Banking Corporation of Ireland www.sbci.gov.ie |
|
Core Duties |
In the first instance the Strategic Banking Corporation of Ireland (SBCI) has been established as a means of ensuring that SMEs in Ireland are provided with sufficient finance for growth. It will also ensure that credit provided to SMEs meets their needs rather than the simply the needs of those who offer the credit. For further details see section 8 of the Strategic Banking Corporation of Ireland Act 2014 |
|
Number of Staff |
None at present, staff compliment will grow to circa ten full time equivalents over the coming weeks, SBCI is being staffed by secondees currently pending recruitment and appointments. When staff are recruited they will be hired by the NTMA in the first instance and assigned to the SBCI. The SBCI will then reimburse the NTMA for all costs associated with staffing of the SBCI. Funding for these staff costs will come from the operations of the SBCI and no voted monies will be involved nor will other exchequer funds be involved. |
|
Budget 2013 |
Nil |
|
Proposed Budget 2014 |
Operational costs of the SBCI are taken from its operations and no voted monies are involved it is self-financing. In accordance with the SBCI Act 2014 the Minister did inject €10million of equity capital into the corporation from the NPRF directed portfolio during September when establishing the corporation. |
|
Date of establishment |
12 Sept 2014 |
|
Legislation |
Strategic Banking Corporation of Ireland Act 2014 |
|
Company Name |
Financial Services Ombudsman's Bureau |
|
Core Duties |
The Financial Services Ombudsman is a statutory officer who deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers. It is a free service to the complainant. It is a statutory body funded by levies from the financial services Providers |
|
Number of Staff |
34 |
|
Budget 2013 |
€6,193,574 |
|
Proposed Budget 2014 |
€6,285,787 |
|
Date of establishment |
April 2005 |
|
Legislation |
Central Bank and Financial Services Authority of Ireland Act 2004 |
|
Company Name |
Disabled Drivers Medical Board of Appeal |
|
Core Duties |
Acts as an appeal body for those applicants refused a Primary Medical Certificate by a Senior Medical Officer in respect of the Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme. |
|
Number of Staff |
2 |
|
Budget |
€330,000 per annum |
|
Date of establishment |
21 December 1989 |
|
Legislation |
S. 92 of the Finance Act 1989 authorised the Minister for Finance to make provision for the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations, 1994 (S.I. 353 of 1994), from which the Medical Board of Appeal derives its power. |
|
Company Name |
The Appeal Commissioners |
|
Core Duties |
The function of the Appeal Commissioners is to hear appeals under the Taxes Consolidation Act 1997 and related legislation by taxpayers against decisions of the Revenue Commissioners. The Appeal Commissioners hear appeals relating not only to Income Tax but also in relation to Corporation Tax, VAT, CGT, Stamp Duties, CAT, Local Property Tax, certain Customs and Excise Duties , Vehicle Registration Tax and sundry other matters arising under the TCA and related legislation. |
|
Number of Staff |
There are currently two Appeal Commissioners. They are supported by two administrative staff. |
|
Budget 2013 |
€442,000 |
|
Proposed Budget 2014 |
€477,000 |
|
Date of establishment |
The Appeal Commissioners are the successors to the UK Special Commissioners of Income Tax who were established in the early 1800s. |
|
Legislation from which they derive powers |
Appeal Commissioners are appointed under Section 850 of the TCA 1997 which provides that the Minister for Finance shall appoint persons to be Appeal Commissioners, and the persons so appointed shall have authority to execute such powers and perform such duties as are assigned to them under the Tax Acts. |
|
Company Name |
Irish Fiscal Advisory Council |
|
Core Duties |
The role of the Council is to independently assess, and comment publicly on, whether the Government is meeting its own stated budgetary targets and objectives. It is required to assess and endorse, as it considers appropriate, the official macroeconomic forecasts underpinning each Budget and stability programme. The Council also assesses the fiscal forecasts and the fiscal stance, and monitors compliance with legislated fiscal rules |
|
Number of Staff |
5 secretariat staff |
|
Budget 2013 |
€816,000 |
|
Proposed Budget 2014 |
€820,000 |
|
Date of establishment |
The Irish Fiscal Advisory Council was established in 2011, and became a statutory body when the Fiscal Responsibility Act 2012 came into force on the 31st December 2012. |
|
Legislation from which they derive powers |
Fiscal Responsibility Act 2012 |
The state does not fund the administration of the Investor Compensation Company Limited or the compensation scheme it operates. The ICCL and its compensation fund is funded exclusively through membership levies.
|
Company Name |
Investor Compensation Company Limited |
|
Core Duties |
Establishment of a fund(s) from which statutory levels of compensation can be paid to eligible investors (retail investors) of failed investment firms. Collect levies from specific categories of investment firms authorised in Ireland to provide investment business services. |
|
Number of staff |
7.5 Full Time Equivalent |
|
Budget for 1/7/13-31/7/14 |
€1.642m (Actual outturn was €1.476m) |
|
Budget for 1/7/14-31/7/15 |
€1.550m (Actual outturn was €1.393m) |
|
Date of establishment |
August 1998 |
|
Legislation |
Investor Compensation Act, 1998 (as amended) |
Credit Union Advisory Committee:
|
Year |
Name of Body |
Statutory provision for making appointments |
Annual Budget |
No. of Members |
Core duties and Functions |
|
2013 |
Credit Union Advisory Committee |
Appointed by the Minister for Finance under Section 180 of the Credit Union Act 1997 Term ended 30th August 2013 |
Annual Fee of €3,705 for Chairman and €2,470 for ordinary member. |
7 (1 Chairman and 6 ordinary members) |
To advise the Minister for Finance and such other persons as the Minister thinks fit regarding: - the improvement of the management of credit unions; the protection of the interests of members and creditors of credit unions; and other matters relating to credit unions upon which the Minister, the Central Bank or such other persons as may be specified by the Minister may from time to time seek the advice of the Committee. |
|
2014 |
Credit Union Advisory Committee |
New committee established on 22September 2014 by the Minister of Finance under Section 180 of the Credit Union Act 1997 |
Annual Fee of €3,705 for Chairman and €2,470 for ordinary member |
3 (1 Chairman and 3 ordinary members) |
Same as above |
The Credit Union Restructuring Board (ReBo)
The Credit Union Restructuring Board "ReBo" was established as an independent body by the Minister for Finance on 1 January 2013, to facilitate the voluntary restructuring of the credit union sector in accordance with the provisions of the Credit Union and Co-Operation with Overseas Regulators Act 2012.
|
Credit Union Restructuring Board |
Core Duties and Functions |
|
ReBo's core function is to oversee the restructuring of credit unions on a voluntary, incentivised and time bound basis so as to support the financial stability and long term sustainability of the sector, in accordance with Part 3 of the Credit Union and Co-operation with Overseas Regulators Act 2012. The functions and duties shall include: Engaging with credit unions to facilitate agreement on restructuring proposals Analysing and examining information provided to it by the Central Bank, credit unions or other relevant 3rd parties Developing provisional proposals and plans with credit unions for the restructuring of the credit union sector Assisting credit unions in the preparation of restructuring plans Considering and assessing restructuring plans submitted to it by or on behalf of credit unions including any funding requirements under the plan including requiring credit unions to engage third parties to verify information and provide a report to ReBo Approving or approving with conditions or rejecting those restructuring plans Recommending the restructuring plans to the Minister and advising the Bank of its recommendations Overseeing the implementation of restructuring plans, including the provision of post-restructuring support to merged credit unions Making recommendations to the Central Bank that credit unions be considered for stabilisation support. |
|
|
Number of Staff |
There are currently 9 staff working in ReBo. |
|
Budget 2013 |
Euro 693 k (actual). 50% of this figure is recoverable from credit unions by means of statutory levy. |
|
Budget Estimate 2014 |
Euro 2,185 k (estimate). 50% of this figure is recoverable from credit unions by means of statutory levy. |
|
Establishment Date |
1 January 2013. |
|
Primary Legislation |
The Credit Union and Cooperation with Overseas Regulators Act 2012 |
|
Company Name |
Comptroller and Auditor General |
|
Core Duties |
The Comptroller and Auditor General holds office under Article 33 of the Constitution. His constitutional function is to audit on behalf of the State all accounts of moneys administered by or under the authority of the Oireachtas. In addition, certain other functions have been conferred on him by law. He audits the annual financial statements of over 330 public bodies and funds. As Comptroller of the Exchequer, the C and AG authorises the release of funds from the Exchequer on foot of requisitions by the Department of Finance or the National Treasury Management Agency on behalf of the Minister for Finance. Funds requisitioned must be for purposes permitted by law and can only be drawn down to the extent authorised by Dáil Éireann. |
|
Number of Staff |
150 whole time equivalents |
|
Budget 2013 |
Estimated Expenditure €11,852,000 Estimated Income/A-in-A €5,875,000 |
|
Proposed Budget 2014 |
Estimated Expenditure €11,797,000 Estimated Income/A-in-A €5,875,000 |
|
Date of establishment and Legislation |
Comptroller and Auditor General Acts, 1866 to 1998 |
|
Organisation |
Office of the Revenue Commissioners |
|
Core duties and functions |
Administration and collection of taxes and duties and implementation of Customs controls. |
|
Number of Staff |
ECF 2014: 5,748 |
|
Budget 2013 |
Gross: €394m Net after Appropriations in Aid: €323m |
|
Budget 2014 |
Gross: €393m Net after Appropriations in Aid: €320m |
|
Date of Establishment |
1/4/1923 |
|
Legislation from which they derive powers |
Statutory Instrument No.2, Revenue Commissioners Order, 1923 Tax and Customs and Excise Acts, as amended by Finance Acts Criminal Justice Acts Various European Union Regulations, e.g. Regulation 4 of the European Communities (Intrastat) Regulations,1993, etc. Various statutes providing for the undertaking of agency services on behalf of other Departments or Agencies, such as Mercantile Marine Act, 1955,Waste Management Environmental Levy Regulations, etc . Various statutes relating to the Administration of the civil service, e.g. Civil Service Regulations Acts, Public Service Management Act, 1997, etc. |
The National Treasury Management Agency (NTMA) was established under the National Treasury Management Agency Act 1990.
The National Pensions Reserve Fund Commission was established under the National Pensions Reserve Fund Act 2000 while the National Development Finance Agency (NDFA) was established under the National Development Finance Agency Act, 2002. The NTMA is the Manager of the NPRF and the NDFA carries out its function through the NTMA.
The National Asset Management Agency (NAMA) was established under the National Asset Management Agency Act, 2009. The NTMA assigns staff to NAMA and also provides it with business and support services and systems.
Detailed information on the functions and costs of these bodies are set out in the relevant annual reports which can be found at www.ntma.ie, www.nprf.ie, www.ndfa.ie, and www.nama.ie respectively. Details of NAMA staffing are contained in the NAMA Annual Report while details of all NTMA staffing are set out in the NTMA Annual Report.
213. Deputy Fergus O'Dowd asked the Minister for Public Expenditure and Reform if he will provide an update on tackling flooding in an area (details supplied) in County Meath; and if he will make a statement on the matter. [36758/14]
View answerMeath County Council expects to appoint consultants shortly with a view to designing a feasible, cost-beneficial flood relief solution for the Northlands Estate.
In the interim, it is planned that the Office of Public Works will carry out maintenance work on the channel in the estate on behalf of the Council before the end of this year.
214. Deputy Robert Dowds asked the Minister for Public Expenditure and Reform his plans to ensure that offshore, non-EU registered companies can be prevented from getting public contracts here; and if he will make a statement on the matter. [37027/14]
View answerUnder EU Directives, and the World Trade Organisation (WTO) Government Procurement Agreement, the public procurement of works, supplies and service contracts above certain thresholds must be advertised awarded on the basis of objective and non-restrictive criteria.
For works contracts the threshold is €5.186 million; for supplies and service contracts awarded by Government Departments the threshold is €134,000 and for the remainder of public bodies the threshold is €207,000. The threshold for supplies and service contracts of entities operating in utility sectors (water, energy, transport and postal) is €414,000. For contracts below these thresholds, the general requirement is that they be advertised on the national public procurement website www.etenders.gov.ie or, depending on value, awarded on the basis of a competitive process of direct invitation to an adequate number of suppliers.
The aim of these European rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. It would be a breach of the rules for a public body to favour or discriminate against particular candidates on grounds of nationality and there are legal remedies which may be used against any public body infringing these rules.
The Office of Government Procurement (OGP) is responsible for producing annual statistical information in relation to above-EU threshold procurement activity by the Irish public sector and for providing these statistics to the European Commission. The EU average for cross border activity in relation to above threshold procurements is 1.4%. I am informed that the figure of 28% is not based on OGP data. The following information has been complied by the OGP and is based on data available on above EU threshold awards.
In 2011, 10.55% (valued at €240 million) of the total known awarded contracts above threshold by the State went to non-domestic companies. This represents less than 5% of the overall annual public procurement spend (approximately €13.1 billion). I am advised by the OGP that more up to date data on above EU threshold contracts for 2012 and 2013 will be available shortly.
It is important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion. In this regard, it is worth pointing out that the open market regime offers opportunities for Irish companies to win business abroad.
215. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform if he will continue to engage with the Irish Insurance Federation to discuss flood insurance for those areas where considerable preventative and alleviation works have been carried out; and if he will make a statement on the matter. [37099/14]
View answerOn the 24th of March of this year, my predecessor, Mr. Brian Hayes T.D., announced details of a Memorandum of Understanding between the Office of Public Works and Insurance Ireland (previously known as the Irish Insurance Federation), the representative body for insurance companies in Ireland, on the exchange of information on flood defence works. The Memorandum of Understanding outlines the principles of agreement between the OPW and Insurance Ireland on the information being provided and how it will be used by the insurance industry. The Office of Public Works has committed to provide Insurance Ireland with data on all completed OPW flood defence schemes showing the design, extent and nature of the protections offered by these works. Insurance Ireland members will then take into account all information provided by the OPW when assessing exposure to flood risk within these areas from 1st June 2014.
To date, the Office of Public Works has provided information on 12 completed flood relief schemes in an agreed format to Insurance Ireland. The schemes concerned are:
Clonmel (River Suir)
Dublin (River Dodder Tidal)
Dublin (River Tolka)
Dublin Fingal (River Tolka)
Duleek (River Nanny)
Dunmanway ( River Bandon)
Ennis (River Fergus Upper)
Fermoy (River Blackwater)
Kilkenny City (River Nore)
Meath (River Tolka)
Mornington (River Mornington)
Tullamore (River Tullamore)
The information provided to Insurance Ireland has also been published on the OPW website www.opw.ie. Information on further completed schemes will be made available to Insurance Ireland by the OPW before the end of the year, as work on compiling the data in the agreed format is finalised.
Officials from the Department of Finance meet, on a regular basis, with Insurance Ireland. The Department has recently requested Insurance Ireland to provide information on the specific actions taken by the industry to meet its obligations under the MoU, the extent to which insurance companies are actually using the details provided by OPW on completed schemes to re-assess flood risk in the benefiting areas and what impact this is actually having on the availability of flood cover where not previously available and/or on the cost of that cover to households or small business. I will be meeting with Insurance Ireland shortly, and I will be pressing for this information to be provided.
Decisions on the provision of flood insurance cover and on the premiums to be charged will remain a commercial matter for individual insurance companies but I expect that the operation of the MoU and the continuing investment by the State in major flood defence works will lead to the greater availability of flood insurance in areas benefiting from those works.
216. Deputy Tom Fleming asked the Minister for Public Expenditure and Reform his plan to eliminate flooding in Kilbannivane graveyard, Castleisland, County Kerry; when this work will proceed; and if he will make a statement on the matter. [36627/14]
View answerThe Office of Public Works has recently approved funding of €144,000 to Kerry County Council under the Minor Flood Mitigation Works and Coastal Protection Scheme for flood mitigation works at this location, which will also provide protection to a number of homes and a commercial property.
The progression of these works is a matter for the Council.
217. Deputy Jerry Buttimer asked the Minister for Public Expenditure and Reform as part of his project of reform, if he has considered restructuring and amalgamating any grades within the Civil Service; and if he will make a statement on the matter. [36643/14]
View answerThe need to simplify organisational and grade structures so that all roles and responsibilities are clear is recognised as an important element of the civil service reform process. Restructuring of grades will support Departments to become more agile and responsive to demands. It will also improve decision-making by ensuring that grade does not limit opportunities to make decisions, innovate and meet objectives.
Ensuring that the Civil Service has the capacity and capability to address existing and future challenges is a core aim of the work of the Civil Service Renewal Taskforce, and HR reforms, including in relation to grading structures, are a key component of that work. The specific actions that arise in this context are contained in the Civil Service Renewal Plan which is expected to be published very shortly following consideration by Government.
218. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if the Office of Public Works is seeking planning permission on a building (details supplied) in County Kildare. [36680/14]
View answerA Planning Application was submitted to Kildare County Council by the Office of Public Works on Wednesday 17th September 2014 for installation of new signage on Newbridge Credit Union Building. The application is available for inspection in Kildare County Council offices in Naas, Co Kildare and on the Council's website for 5 weeks from the date of submission.
219. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the budget allocation for the statute law revision programme for the years 2011 to 2016; the amount of expenditure that will be incurred on the specific task of repealing legal instruments on the Statute Book since before 1820 and which are now the subject of a public consultation. [36743/14]
View answerThe work of the Statute Law Revision Programme to date in removing obsolete legislation from the statute book has been strongly supported by outside observers such as the OECD, and is a key part of the Programme for Government 2011-2016 and the Public Service Reform Plan 2014-2016. The forthcoming pre-1820 Bill will be the single largest repealing measure in the history of either this or any other State and will be an important building block towards an eventually fully-revised Statute Book.
Prior to 2012 the Statute Law Revision Programme was located in the Office of the Attorney General. For this reason my Department had no 2011 or 2012 budget allocation for the programme. The outturn for 2012 was €91,821 which reflected a number of work streams during that year including the enactment of the Statute Law Revision Act 2012 which completed the review of all pre-independence primary legislation.
In 2013 a budget allocation of €138,000 was provided for, with an outturn of €125,970.75. In July 2013 the Government agreed to pursue several work streams of statute law revision across the Statute Book including in relation to post-1922 Acts, secondary legislation both pre- and post-1922, and charters.
In 2014 a budget allocation of €159,000 was provided for, with an outturn of €79,784.19 in the year to date. The budget allocation for 2015 and 2016 has not yet been determined and will be dealt with in due course as part of the Estimates process.
The Deputy may wish to note that as regards these budget allocations, the Estimates heading for Statute Law Revision Programme includes payment for the Legal Adviser to the Government Reform Unit who carries out advisory functions in relation to other legislative priorities in the Programme for Government such as the Freedom of Information Bill, the Public Service Standards Bill, the Protected Disclosure Act and a number of other measures. The budget allocation set out in the following figures therefore does not exclusively relate to statute law revision as such and includes the full range of services of the Legal Adviser.
In relation to the expenditure on the specific tasks associated with the current Bill it should be noted that the pre-1820 Bill is the first in a series dealing with secondary legislation. It is intended that, subject to the passing of this measure, later Bills will deal with later periods of secondary legislation. For this reason, in tandem with the preparation of this Bill, work has continued on a number of other areas. These include the analysis of later secondary instruments, a scoping exercise in relation to a Bill to repeal spent and obsolete primary legislation enacted by the Oireachtas post-1922, and recording charters and letters patent. Because the activity of the Programme has been carried out in a number of parallel work streams a breakdown of the specific cost attributable to the pre-1820 Bill is not available.
Finally, in addition to the figures set out about, some permanent staff of the Department have at various times also been engaged in the programme on a part-time basis.
220. Deputy Pat Deering asked the Minister for Public Expenditure and Reform his views on reclassifying preschool facilities as educational so that they can have similar status for commercial rates as the education sector. [36834/14]
View answerThe Valuation Act, 2001 provides that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act.
The Act is quite specific in relation to the exemptions that can be implemented by the Commissioner of Valuation. These are set out in Schedule 4 of the Act and there is no discretion to grant exemptions not covered by Schedule 4. Buildings which qualify for exemption from rates under the provisions of Schedule 4 would principally include those used for public worship, education and health-care provided on a not-for-profit basis and charitable purposes.
Certain pre-school facilities can be exempt from rates under the terms of paragraph 16 of Schedule 4 of the Valuation Act, 2001, where that organisation is a charitable organisation, that uses its property exclusively for charitable purposes and otherwise than for private profit. The organisation claiming charitable status for the purpose of qualifying for exemption from rates must comply with the definition of "charitable organisation" as stated in PART 1 section 3 of the Valuation Act, 2001.
Similarly, certain pre-school facilities can be exempt from rates where the conditions detailed in paragraph 10 of Schedule 4 are met which in summary are:
1. It must be occupied by an educational institution
2. It must be used exclusively for the provision of educational services
3. Otherwise than for private profit;(a) the institution must not be established or operated for the purposes of making a private profit or be financed wholly or mainly from State funds and (b) The services in question must be available to the general public with or without a charge being levied.
Re-classifying pre-school facilities as educational under Schedule 4 of the Valuation Act 2001 would not in itself result in these facilities no longer being liable for rates.
As a matter of course, the Valuation Office examines all claimant cases on their individual merits by reference to the relevant statutory provisions governing the operation of the Valuation Act as it relates to child-care facilities and all other categories of properties.
Private childcare facilities form part of the rateable valuation base on a nationwide basis. I have no plans to provide for special treatment of these facilities by their exemption from rateability under the Valuation (Amendment) (No 2) Bill as such a change would be quickly followed by demands for similar treatment from other interests involved in the provision of useful services, which in equity, would be difficult to resist. The process could thus substantially reduce local authority revenues, which would have to be made good by imposing a corresponding increase on the remaining ratepayers.
