Tuesday, 21 Oct 2014

Written Answers Nos. 244-261

Tax Rebates

Questions (244)

John McGuinness

Question:

244. Deputy John McGuinness asked the Minister for Finance the reason a tax refund in respect of a person (details supplied) in County Kilkenny has not been paid; if he will expedite the matter. [40419/14]

Written answers

Minister for Finance

I am advised by the Revenue Commissioners that they have been unable to facilitate a refund of tax through the PAYE system for the individual as they were not provided with correct information and the individual subsequently ceased employment. Revenue has contacted the named individual to facilitate her in making a claim for any refund due now that her employment has ceased.

Government Deficit

Questions (245)

Michael McGrath

Question:

245. Deputy Michael McGrath asked the Minister for Finance the nominal GDP in 2013 under ESA, European system of accounts, 95 and ESA 2010 statistical methodologies; and the nominal general government deficit for 2013; and if he will make a statement on the matter. [40440/14]

Written answers

Minister for Finance

From September 2014, the new framework for national accounts statistics 'ESA2010' (European System of Accounts) has entered into force. It replaces the old framework of ESA1995. The new framework essentially modernises the previous standards contained in ESA 1995. Such changes are needed periodically in order to adapt the national accounts to the changing dynamics of economic activity, such as the advent of the knowledge economy. Updates are also needed in order to comply with international standards and preserve statistical comparability beyond the EU.

The Quarterly National Accounts Quarter 4 2013 published 13 March 2014 was the last to be released by the CSO under the ESA 1995 framework at this time the estimated Nominal GDP for 2013 was €164,050m.

Nominal GDP for 2013 is now €174,791m under the new ESA 2010 framework as published in the National Income and Expenditure Annual Results 2013 by the CSO on 3 July 2014.

The nominal General Government Deficit for 2013 is -€9,967m, as published by the CSO in the Government Finance Statistics Annual results on the 14 October 2014.

Water Charges Introduction

Questions (246)

Michael McGrath

Question:

246. Deputy Michael McGrath asked the Minister for Finance the deficit in nominal and percentage terms which would exist in 2015 if domestic water charges were not applied, and the costs associated with water provision if brought fully back on to the State's books; and if he will make a statement on the matter. [40441/14]

Written answers

Minister for Finance

In my reply to the Deputy's PQ No. 166 of 7 October last (37932/14), I pointed out that the CSO would have to take the absence of water charges into account in its classification of Irish Water. I also informed the Deputy that if Irish Water was classified inside general government then all revenue and expenditure would count towards the general government balance.

My colleague the Minister for the Environment, Community and Local Government is providing €533 million from the Local Government Fund, which is in general government, to Irish Water in 2015.  Accordingly, this amount of €533m is already included in general government expenditure for 2015.

Furthermore revenue from non-domestic customers, which I understand is worth about €230m annually, will count as general government revenue off-setting an equal amount of general government expenditure.

I am also providing equity investment of €222m to Irish Water in 2015 subject to the CSO and Eurostat classifying Irish Water as a market institutional unit outside of general government. If this were not the case then such a transfer could, if it were made, be classified as a capital transfer and become general government expenditure when invested by Irish Water.

Accordingly, under the scenario that Irish Water is in general government, any expenditure or investment undertaken by Irish Water in 2015 over and above the amounts outlined above would be counted as general government expenditure and impact the deficit. Money borrowed by Irish Water would also count towards general government debt.

Regarding the costs associated with water provision in 2015, I refer you to PQ No. 498 (35470/14) of 23 September last answered by my colleague the Minister for the Environment, Community and Local Government.

Water Charges Yield

Questions (247)

Michael McGrath

Question:

247. Deputy Michael McGrath asked the Minister for Finance the net revenue which will be generated from the application of domestic water charges in 2015 taking account of each of the measures relating to water charges announced in the budget; and if he will make a statement on the matter. [40442/14]

Written answers

Minister for Finance

Revenues from the application of water charges will accrue to Irish Water and will not be transferred to the Exchequer.

It is estimated that the tax relief on water charges announced in the Budget will cost €40 million approximately, the value of which will be provided to those who qualify for the tax relief.

The expenditure measures announced to assist those on certain social welfare payments are primarily a matter for the Minister for Social Protection.

As the Deputy will be aware, the Department of the Environment, Community and Local Government has primary responsibility for Irish Water.

Budget Targets

Questions (248)

Michael McGrath

Question:

248. Deputy Michael McGrath asked the Minister for Finance if the budget deficit projections for 2015 contain an assumption for the savings that will be achieved from the early repayment of the IMF loans; and if he will make a statement on the matter. [40444/14]

Written answers

Minister for Finance

The forecast for the general government deficit in 2015 contains an estimate for general government interest expenditure that is more than €800 million lower than the equivalent estimate in the Stability Programme Update. This reduction reflects the more favourable outlook for interest rates generally and also a prudent provision for projected savings arising from the early repayment of IMF loans.  The actual level of savings will depend on a number of factors including the amount and timing of the repayments and the timing of, volume and interest rates on any related bond issuance.

While the early repayment is subject to the completion of all national approval procedures in the relevant European states, the provision was included on the basis of the broad political support indicated at the September ECOFIN meeting. There will be no early repayment until all approvals are in place. 

Budget Measures

Questions (249)

Michael McGrath

Question:

249. Deputy Michael McGrath asked the Minister for Finance when the tax strategy papers from budget 2015 will be published; and if he will make a statement on the matter. [40445/14]

Written answers

Minister for Finance

The Tax Strategy Group is an interdepartmental committee chaired by the Department of Finance. Its membership comprises senior officials and advisors from a number of Departments, including Finance, Taoiseach, Jobs, Enterprise & Innovation and Social Protection and also from the Office of the Revenue Commissioners and the Office of the Attorney General. Papers on various options for the Budget and for the medium and longer term are prepared for the Group.

The papers prepared for Budget 2015 are also being used to assist in the development of the Finance Bill so they cannot be published just yet. However  I would expect officials in my Department to be in a position to commence the publication process once the Finance Bill has been enacted in December.

Tax Reliefs Cost

Questions (250)

Michael McGrath

Question:

250. Deputy Michael McGrath asked the Minister for Finance the saving to the State in terms of pension tax relief in 2015 from the reduction in the marginal tax rate to 40%; and if he will make a statement on the matter. [40446/14]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that the yield in terms of reduced pension tax relief from a reduction in the marginal rate of tax from 41% to 40% is tentatively estimated to be €17 million in a full year.

Tax Reliefs Application

Questions (251)

Michael McGrath

Question:

251. Deputy Michael McGrath asked the Minister for Finance if a person wishing to avail of the DIRT, deposit interest retention tax, relief for first-time buyers will be required to open a designated account for such purposes; if DIRT paid in previous years will be eligible for the relief if the person can demonstrate it is to be used for a deposit for a house purchase; and if he will make a statement on the matter. [40447/14]

Written answers

Minister for Finance

First-time buyers will not be required to open a designated account for the purpose of availing of this relief.

On the conveyance of a relevant property first-time buyers will be entitled to claim a refund of DIRT paid in the previous 48 months in respect of savings used to purchase that property.

DIRT will be refunded in respect of savings up to a maximum of 20% of the purchase price of the property.

Departmental Staff Redeployment

Questions (252)

Dara Calleary

Question:

252. Deputy Dara Calleary asked the Minister for Finance if he will provide in tabular form, the number of civil servants in his Department who have designated a County Mayo venue as their preference for a transfer; the numbers who have moved to the county in each year since 2011; and if he will make a statement on the matter. [40896/14]

Written answers

Minister for Finance

I wish to advise the Deputy that my Department does not have an office in County Mayo and that no civil servants in my Department have advised of a preference to transfer to County Mayo nor have any staff from my Department transferred to County Mayo since 2011.

Airport Development Projects

Questions (253)

Dara Calleary

Question:

253. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform in the context of his budget speech on the special additional allocation of €100 million in structural funds to the Border, midland and western region, if an application from Ireland West Airport Knock as the leading airport in the region will be considered; the timeframe proposed for this operational plan; and if he will make a statement on the matter. [40341/14]

Written answers

Minister for Public Expenditure and Reform

In the context of the agreement on the EU's Multi-annual Financial Framework (MFF), the Irish Government was successful in securing €1.2billion of Cohesion policy funding for the period 2014-2020.   This represented an increase of 8% in real terms over the 2007-2013 programming period.  In particular, the Government was successful in negotiating a special allocation of €100m (2011 prices) for the Border, Midland and Western (BMW) Region, in recognition that it is now classified by the EU as a more developed region.

Preparations for the new programming period, 2014-2020, have been underway in Ireland for some time. This has involved public consultations as well as the preparation of needs analyses and ex-ante evaluations.    In accordance with EU requirements, Ireland has prepared a draft Partnership Agreement with the European Commission which sets out funding priorities that take account of the Europe 2020 Strategy for Smart, Inclusive and Sustainable Growth and the National Reform Programme.  These priorities include promoting jobs and growth; combating unemployment and social exclusion; promoting R&D and ICT investment and the competitiveness of the business sector; and promoting an environmentally-friendly and resource-efficient economy.

Draft Operational Programmes, including one covering the BMW region, have been prepared in accordance with these priorities and with the relevant EU Regulations, and these have been submitted to the Commission.  The Regulations specifically exclude airport infrastructure except for measures related to environmental protection. 

Office of Public Works Projects

Questions (254)

Aengus Ó Snodaigh

Question:

254. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure and Reform his plans for the Office of Public Works site at a location (details supplied) in Dublin 8. [39779/14]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works (OPW) will be continuing and improving its present activities at this site to effect greater efficiencies for the long term.

Protected Disclosures in the Public Interest

Questions (255)

Arthur Spring

Question:

255. Deputy Arthur Spring asked the Minister for Public Expenditure and Reform the process an ex-public servant employee should follow when wishing to whistle-blow on activities in their former place of work. [39976/14]

Written answers

Minister for Public Expenditure and Reform

The Protected Disclosures Act enacted in July 2014 establishes a comprehensive framework for safeguarding both public and private sector workers against penalisation for making protected disclosures in accordance with the Act.  The Act, which represents international best practice, provides for a number of different disclosure channels which are subject to different conditions in order to attract the protections available under the legislation.  Consequently it is not feasible to provide legal guidance on the course of action an individual should take, in the absence of sufficient information on the particular circumstances that apply in any specific case.  In that context, section 9 of the Protected Disclosures Act provides that a worker may make a protected disclosure in the course of obtaining legal advice, including advice relating to the operation of the Protected Disclosures Act, from a barrister, solicitor or trade union official.  The Deputy may wish, therefore, to bring the attention of the person referred to in his question to this provision in the legislation.

Departmental Contracts Data

Questions (256, 257, 258)

Mick Wallace

Question:

256. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the public contracts that have been awarded to a company (details supplied) or subsidiaries of the company in the lifetime of this Government. [39987/14]

Mick Wallace

Question:

257. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the public contracts that have been awarded to companies (details supplied) or subsidiaries of companies. [39988/14]

Mick Wallace

Question:

258. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the number of Government contracts that were awarded to companies in County Wexford last year; and the number of Government contracts that were awarded to companies in County Wexford in the lifetime of this Government. [39989/14]

Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 256 to 258, inclusive, together.

It must be noted that much of the information sought by the Deputy is not centrally collected by my Department and certain information requested (including shareholder information) is not mandated to be collected by contracting authorities as part of a procurement process. Whilst individual contracting authorities in the public and utilities sectors would hold information in relation to contracts awarded by them, they are not required to collect the details of all the shareholders that have invested in a company that has been awarded a public contract.

Historical contract award data available to the OGP only pertains to what was previously mandated to be entered into e-Tenders. All government entities are mandated to publish all above OJEU threshold tender notices and awards on OJEU via e-Tenders but Tenders below threshold value but above €25,000 have a general requirement to be advertised on e-Tenders and no requirement to enter award details.  Circular 10/14 which was issued this year mandates the entry of award details in e-Tenders for all tenders >€25,000 published after August 1 2014 so we expect to be able to report on award details for all contracts awarded above €25,000 in the future.  We have developed new functionality in e-Tenders which we released in August 2014 to assist the OGP with ensuring award data is entered into e-Tenders and for reporting on this data.

It should be noted that the contract details provided below are limited to awards for which the details have been entered into eTenders (historically mostly only those above OJEU threshold) and the Supplier details are dependent on information provided by Suppliers for which an award notice was published by the contracting authority. They do not reflect the majority of tenders for which there is no EU Directive requirement to publish an award notice and no historical mandate (prior to Circular 10/14) as usual behaviour is not to enter award details for these awards. The EU thresholds are: 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.

Nine contracts are recorded as been awarded to companies with an address in County Wexford since the current government inception. The details are:

Contract Name	Contracting Authority	Company Name	Planned Value	Year
Proposed Upgrading of Existing Waste Water Treatment System	Irish Aviation Authority	Molloy Engineering	€60,000	2014
Provision of Endpoint solution for over 1000 endpoints	Brothers of Charity Services Galway	Datapac	€30,000	2014
The supply and erection of Safety Barrier repairs on National Roads In County Kerry	Kerry County Council	Guardrail Ireland ltd	€150,000	2014
Multi Supplier Framework Agreement for the Provision of Stationery, Printer Toners, Printed Material and Hospital Charts	The National Maternity Hospital	Datapac	€1,000,000	2014
Provision of Servers for the Office of Public Works	OPW	Datapac	€50,000	2014
Supply of SAN Storage Device to SFI	Science Foundation Ireland	Datapac	€80,000	2013
Multi Supplier Framework for the Provision of Personal Computers	Office of Government Procurement	Datapac	€2000,000	2014
Supply of ICT Consumables	Office of Government Procurement	Datapac	€11,000,000	2013
Supply of ICT Consumables	Office of Government Procurement	Datapac	€8,000,000	2012

Of the list of companies supplied by the Deputy only three are recorded on the eTenders system as having been awarded contracts in the lifetime of the current Government. It should be noted that Another 9 is a trading name of Business Recovery Services Ltd. The details are:

Company Name	Contract Name	Contracting Authority	Planned Value
Sierra Communication	Framework Agreement for Installation of Street Lighting in the Dublin City Council Area	Dublin City Council	-
-	Dublin Region Water mains Rehabilitation Project - Contractor Framework No. 2	Dublin City Council	-
-	Blanchardstown Regional Drainage Scheme - Contract No.9 - Permanent Flow Monitors	Fingal County Council	€600,000
Business Recovery Services Ltd	The Provision of an Infrastructure Platform to Horse Racing Ireland	Horse Racing Ireland	€600,000
Another 9	The Provision of an Infrastructure Platform to Horse Racing Ireland	Horse Racing Ireland	€600,000
-	Business Continuity Disaster Recovery 2013-2016	Commission for Aviation Regulation	€15,000

The Deputy should be assured that all public contracts are awarded following a transparent and competitive process conducted in compliance with the National and EU rules.  The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.  Public bodies cannot favour or discriminate against particular candidates and there are legal remedies which may be used against any public body infringing these rules. It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process.

The Deputy will be aware that reform of public procurement is a key element of the Government's Public Service Reform agenda. The new approach to public procurement involves integrating procurement policy, strategy and sourcing in one office; ensuring a consistent approach to procurement across the public service; strengthening spend analytics and data management; much greater aggregation of purchasing across public bodies to achieve better value for money; examining the specifications set out for goods and services; evaluating demand levels to assess how demand and volume can be reduced; and strengthening supplier and category management.

The Office of Government Procurement is engaged in changing the administration of procurement throughout the public service. Currently public service procurement activity is transacted by several hundred contracting authorities throughout the State. The Office of Government Procurement together with reformed sector procurement functions in Health, Education, Local Government and Defence will enable the public service to speak with one 'voice' to the market for each category of expenditure, ensuring a consistent approach to procurement across the public service.

Public Procurement Contracts Social Clauses

Questions (259, 260)

Thomas P. Broughan

Question:

259. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 93 of 3 April 2014, if the use of social clauses in public procurement contracts applies to construction contracts entered into by local authorities. [39990/14]

Thomas P. Broughan

Question:

260. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 93 of 3 April 2014, if he will provide an up-to-date report on the pilot initiative to be included in the NDFA, National Development Finance Agency, devolved schools programme approved by the Government contracts committee for construction. [39992/14]

Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 259 and 260 together.

As outlined in the response to your earlier PQ 93 of 3 April 2014 (PQ 15781/14 refers), a pilot social clause has been included in the three devolved schools bundles which are being administered by the NDFA on behalf of the Department of Education and Skills.

In summary the pilot clause requires that at least 10% of those working on the sites being drawn from the live register and having been unemployed for more than 12 months; and at least 2.5% of workers on the sites will be engaged in an approved registered apprenticeship, training or educational work placement scheme.

In total the three contracts cover fourteen sites with the works comprising both stand-alone, new build and extensions/refurbishment works. Construction work started on all three of the contracts during Spring 2014. The aggregate capital value of the contracts is c. €70m.

I understand that overall compliance in relation to the pilot clause has been good. The Department of Social Protection and its local Intreo offices are working closely with the appointed contractors to support the pilot initiative and there has been strong positive engagement from the contractors involved in each of the projects.

The most recent monthly progress reports to the NDFA provided by each of the main contractors involved indicate that they are on target to achieve the cumulative percentages set out in the pilot clause. In the monthly report period for September 2014, across the three contracts there are 39 employees working on the sites who had been unemployed for more than 12 months and 12 further employees who are either apprentices or trainees, of whom 7 (of the 12) have also been unemployed for more than 12 months.

The Department of Social Protection, through its local Intreo offices is continuing to liaise with the contractors on all three contracts to identify and fill further positions from the live register.

Once initial evaluations on the performance of the clause have been undertaken any necessary amendments will be tabled at GCCC before they are incorporated into the €1.5bn, PPP element of the €2.25bn Stimulus Programme that I announced in July 2012.

Departmental Advertising Expenditure

Questions (261)

Seán Fleming

Question:

261. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the amount his Department has spent on advertising for vacancies in 2014; and if he will make a statement on the matter. [40185/14]

Written answers

Minister for Public Expenditure and Reform

In response to the Deputy's question I can confirm that my Department has incurred no cost on advertising for vacancies in 2014.

The Department of Public Expenditure and Reform has used the services of the Public Appointments Service (PAS) in all our recruitment requirements and related advertising who have a budget allocation for this purpose. My Department would only be required to pay additional costs in cases where we have requested advertisements to be placed in specific publications or with requirements above the PAS general standard/format.

The Public Appointments Service took out advertising on behalf of the Office of Government Procurement totalling €1948.14 (ex VAT) but a request for reimbursement has not yet been made.

The Office of Public Works has spent €35,064 in 2014 on advertising for vacancies, primarily for seasonal staff.