Written Answers Nos. 1-37
12. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if he will reverse pay freezes and changes to terms and conditions for workers in the public sector; and if he will make a statement on the matter. [11695/15]
View answerThe Haddington Road Agreement (HRA) underpinned by the Financial Emergency Measures in the Public Interest (FEMPI) Acts 2009-2013, forms the cornerstone of pay policy in the public service until 2016 when it is due to expire. The Agreement, which contains a number of measures directly affecting the pay of staff, is delivering and is making a significant contribution to the achievement of the Government's fiscal consolidation deficit target of below 3% of GDP for 2015. The ongoing recovery in the economy is in no small part due to the contribution of public servants to keeping the cost of the public service paybill at sustainable levels and the recovery has facilitated the reinvestment by the Government in 2015 of some €300m in frontline services mainly in Health, Education and An Garda.
The FEMPI Acts govern the €2.2bn direct reductions in public service remuneration and pensions. Notwithstanding our improving economy, because of the magnitude of these reductions, the economy could not sustain the immediate restoration of such reductions. I believe that public servants understand that position.
However, I have indicated that, following receipt of the 1st Quarter Exchequer returns and engagement with my Government colleagues, it is my intention to engage with Public Service Unions regarding the gradual unwinding, in parallel and consistent with our improving economy, of the emergency measures implemented under the FEMPI Acts. This is consistent with the approach adopted in securing agreement on the HRA through engagement with those directly affected. The public service unions have also indicated their intention to submit pay claims this year. Any discussions on pay will, of course, take place in the context of the State's fiscal position and the pace of financial recovery for this year and 2016. Any proposed changes to the FEMPI legislation will be subject to Government approval and will be brought before the Houses of the Oireachtas.
The legality of the Acts is predicated on there being a financial emergency. In fact, I am required to review these Acts annually. My next review of the Acts is due to be carried out, and a report laid before the Houses of the Oireachtas, before 30 June this year.
Public servants, in common with all employees, will have seen benefits this year to their take home pay arising from the tax reductions the Government has been able to introduce following its prudent management of the economy. I have, however, made it clear that public service pay rates will continue to be frozen in 2015 the 7th consecutive year in which there will have been no pay increases for public servants and, as we know, there have been 2 or 3 actual cuts in wages over that period. It is now appropriate for the Government to plan for the development of a sustainable public service pay and pensions policy that will continue to support our ongoing economic recovery over the medium term. Having worked over the last number of years to restore the health of the public finances I am determined that any outcome of discussions with unions is consistent with our overall financial position.
14. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the current status of flood relief works on the River Suck; and if he will make a statement on the matter. [11650/15]
View answerResponsibility for maintenance of the River Suck, which is the main tributary of the River Shannon, rests jointly with Galway County Council and Roscommon County Council. The Councils have heretofore discharged their responsibility through the River Suck Joint Drainage District Committee.
The most recent formal report submitted by the Committee to the Office of Public Works (OPW) shows that it expended almost €142,000 in 2011. This expenditure comprised routine maintenance works including the cleaning of drains and river bed, cutting back trees or other obstructions, weed control and, where possible, improving water flow. The OPW has been advised that the Committee has since expended €136,000 in 2012, €149,310 in 2013 and €150,891 in 2014 on further maintenance works. I am advised that the River Suck Joint Drainage Committee was disbanded with effect from 1st January, 2015 on foot of Ministerial Order. However, as I have indicated, the ongoing maintenance of the channel and the funding of that work remains the joint responsibility of Roscommon County Council and Galway County Council.
Substantial funding has been provided by the Office of Public Works under the Minor Flood Mitigation Works and Coastal Protection Scheme to enable Galway and Roscommon County Councils to undertake flood alleviation projects identified by the Councils within the River Suck catchment to address localised flood problems. Since the introduction of the Scheme in 2009, nearly €2.1m has been approved to Galway County Council and over €550,000 to Roscommon County Council for this purpose. Details of all the projects for which funding has been approved to local authorities under the Minor Flood Mitigation Works and Coastal Protection Scheme are available on the OPW website www.opw.ie.
The OPW's core strategy for addressing flood risk in the River Suck area, as part of the larger River Shannon Basin, is the River Shannon Catchment Flood Risk Assessment and Management (CFRAM) Study. The output of this important project will be an integrated plan of specific measures to address, in a comprehensive and sustainable way, the significant flood risk factors in the Shannon Basin. Draft predictive flood maps are currently being produced by engineering consultants undertaking the Shannon CFRAM Study, on behalf of the OPW, in partnership with the relevant local authorities. Public consultation has already taken place in relation to the draft flood maps for many of the study areas and I am pleased to say that these were generally well attended. The consultations for the draft maps for the remaining areas will take place over coming weeks, details of which are being advertised locally and on the Study website www.shannoncframstudy.ie.
The next phase in the CFRAM Study will then be the identification of appropriate flood risk management options for each significant risk area, following which Flood Risk Management Plans (FRMPs) are scheduled to be prepared in late 2015/early 2016. The draft FRMPs will then be the subject of public consultation before being finalised. Updates on the study are available on the Study website.
The FRMPs, when finalised following public consultation process, will provide the basis for decisions regarding future investment by the State in flood risk management in significant risk areas, including those in the River Suck catchment area. I would therefore strongly urge members of the public and other stakeholders to take part fully in the consultation process.
15. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if he will end restrictions in place on recruitment in all areas of the public service; and if he will make a statement on the matter. [11696/15]
View answerI announced at Budget time in October that the Moratorium on Recruitment and Promotion in the Civil and Public Service would be brought to an end in 2015. In its place will be a new arrangement that gives Departments delegated sanction for the management of staff numbers, including recruitment. My Department is currently engaging with all other Departments to put in place the necessary administrative and oversight structures and controls that will govern the new arrangement. Some have already been agreed and sanction has issued, and it now falls to those Departments to determine staff and service priorities and to continue to drive reform and deliver efficiencies. These new arrangements will be subject to Departments remaining within agreed pay ceilings and meeting ongoing efficiency and reform objectives, but it provides them with more freedom to recruit and assign staff where they determine the need is greatest.
The Moratorium was a necessary emergency response at a time of fiscal crisis, and it played an important role in helping to reduce the size and cost of the public service to a level that was affordable and sustainable.
It is important to note that throughout the time of the Moratorium, the Government continued to provide for targeted recruitment into key frontline areas in Education and Health, in particular. Indeed, most recently, at Budget time in October, I made additional financial provision for 1,700 new teachers, Special Needs Assistants and resource teachers, as well as additional front line staff in Health and 300 new Garda recruits.
16. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he has conducted an analysis of levels of low pay in the public service; his plans to address same; and if he will make a statement on the matter. [11690/15]
View answerThe terms, conditions and pay rates for public servants have traditionally been determined through collective bargaining processes with due regard to statutory provisions including the National Minimum Wage Act. It is also worth noting, in the context of low pay, that one of the first actions of this Government on taking office was to restore the Minimum Wage rate to its pre-existing rate. More recently, the Government has established the Low Pay Commission to advise the Government on the appropriate rate of the National Minimum Wage and any decisions by Government in relation to that rate that may impact on pay in the public service will be implemented accordingly.
While the fiscal emergency gave rise to the exceptional statutory reductions in pay imposed on public servants, collective bargaining has survived and has been highlighted by the concluding of difficult public service agreements including most recently, the Haddington Road agreement, by staff representatives and their public service employers. The Deputy will also be aware of my intention to enter into discussions with the public sector unions and the representatives of public service pensioners on successor arrangements to the Haddington Road agreement. I would expect, as has been the case heretofore, that staff representatives will in these discussions address the issue of the lower paid in the public service.
The Haddington Road agreement, underpinned by the Financial Emergency Measures in the Public Interest (FEMPI) Acts 2009-2013, sets the terms of pay in the public service until 2016. The pay reductions imposed under the agreement have been progressive, thereby ensuring that reductions imposed impacted on low paid workers least and that higher reductions were imposed on the higher paid. Significantly, the more recent pay cuts applied to public servants under FEMPI 2013 apply only to those higher paid public servants on annual salaries of €65,000 or more. The core pay of 87% of the workers in the public service was not reduced by the legislation.
In order to continue the recent encouraging evidence of progress in relation to the public finances, any amelioration in the impact of the Financial Emergency measures, and public service pay policy generally, will continue to have regard to our overall fiscal targets. However, as provided for in the Haddington Road Agreement and subsequently legislated for in the FEMPI Act 2013, the rate of PRD on the €15,000 to €20,000 band of pay received in a year fell from 5% to 2.5% on 1 January 2014. This rate cut was worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of an increase to take-home pay.
17. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his views on the continuing fall in public sector employment numbers in key areas, as highlighted by the recent Quarterly National Household Survey; the impact on public service delivery; if he envisages this continuing in 2015; and if he will make a statement on the matter. [11703/15]
View answerAs the Deputy is no doubt aware, the CSO survey data which he refers to captures information on employment levels across the entirety of the Public Sector, which for the CSO includes the commercial semi-state sector - such as the ESB, RTE and Dublin Airport - as well as in the Civil and Public Service.
My Department collates data on actual numbers serving in the Civil and Public Service, which is also publicly available, and it shows that overall numbers increased by more than 1,400 in 2014, the first net increase in staff numbers since 2008. The same data also shows a considerable increase in the last quarter of 2014 in Health (700) and Education (800), which partly reflects Budget Day provisions for 1,700 more teachers, Special Needs Assistants and resource teachers, as well as additional front line staff in the Health service.
The Deputy is well aware that overall numbers were reduced under the Moratorium on Recruitment and Promotion, which was introduced in 2009 as an emergency policy response to the crisis in the public finances. Obviously, the need to reduce the cost of the Public Service necessarily involved decisions not to fill all posts. This is why our strong commitment to Public Service reform was and continues to be so important in protecting and improving the quality of public services. The whole suite of reforms delivered under the Reform Agenda over the last number of years - including additional hours in the working week and increased flexibilities in rostering has helped to offset the impact of reduced numbers to the extent that there has been a real improvement in the efficiency and effectiveness of public services. These gains are now embedded in the system.
As I have already mentioned, at Budget time, when presented with a rapidly improving economy and increasingly healthy public finances, I was able to announce an end to the Moratorium and the introduction of a new form of delegated arrangement for the management of public service staffing. This new reform measure will give Departments greater freedom to respond to service needs as they arise, including considerable flexibility to make their own staffing and service delivery decisions.
18. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will provide a comprehensive report on plans to lift the embargo on recruitment as per budget 2015; and if he will make a statement on the matter. [11685/15]
View answerI announced at Budget time in October that the Moratorium on Recruitment and Promotion in the Civil and Public Service would be brought to an end in 2015. In its place will be a new arrangement that gives Departments delegated sanction for the management of staff numbers, including recruitment. My Department is currently engaging with all other Departments to put in place the necessary administrative and oversight structures and controls that will govern the new arrangement. Some have already been agreed and sanction has issued, and it now falls to those Departments to determine staff and service priorities and to continue to drive reform and deliver efficiencies. These new arrangements will be subject to Departments remaining within agreed pay ceilings and meeting ongoing efficiency and reform objectives, but it provides them with more freedom to recruit and assign staff where they determine the need is greatest.
The Moratorium was a necessary emergency response at a time of fiscal crisis, and it played an important role in helping to reduce the size and cost of the public service to a level that was affordable and sustainable.
It is important to note that throughout the time of the Moratorium, the Government continued to provide for targeted recruitment into key frontline areas in Education and Health, in particular. Indeed, most recently, at Budget time in October, I made additional financial provision for 1,700 new teachers, Special Needs Assistants and resource teachers, as well as additional front line staff in Health and 300 new Garda recruits.
19. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform the number of persons who have retired from the public service and Civil Service under Government voluntary early retirement and voluntary redundancy schemes since 2008; and if he will make a statement on the matter. [11694/15]
View answerRegarding early retirement, in May 2009, the Incentivised Scheme of Early Retirement (ISER) allowed public servants of 50 years of age and older to retire early and receive an immediate pension based on their service to date. 10% of the retirement lump sum was paid at departure, with the 90% balance payable on reaching preserved pension age. The normal actuarial-calculated financial reduction applied to pension benefits of people retiring early was waived under this scheme. The number of people who left the Public Service under this scheme was about 1,000, as recorded on a full-time equivalent basis.
In 2010, an early retirement scheme and a voluntary redundancy scheme were introduced specifically for the HSE. Under these two programmes, more than 1,600 people availed of these two schemes, recorded on a full-time equivalent positions.
Later, in 2012, the Government decided that voluntary redundancy could be introduced in certain targeted areas of the Public Service where there continued to be staff surpluses. Since then, our latest data shows that just over 900 staff have left the Public Service on this basis. These were largely in the Local Authority area (over 600), with small pockets in the Defence, Education and among some non-commercial state bodies. It is the responsibility of local sectoral management to oversee these schemes, under the agreed standard terms.
It is important to note that:
- the approach to Voluntary Redundancy schemes has been to allow Public Service organisations to use it on a targeted basis in different areas where it makes sense and can be shown to offer value for money in the long run;
- Voluntary Redundancy is by definition not compulsory, and therefore people only leave if that is what they want; equally there is no automatic right to redundancy. All applications are considered in the context of ongoing business needs and service provision priorities.
20. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the progress made in improving access to State contracts for Irish firms; and if he will make a statement on the matter. [11689/15]
View answerPublic Procurement is governed by EU and National rules. The aim of these 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 EU rules for a public body to favour or discriminate against particular candidates on grounds such as nationality, organisational size, etc. and there are legal remedies which may be used against any public body infringing these rules.
In its recently published report "Public Service Spend and Tendering Analysis for 2013", analysis by the Office of Government Procurement (OGP) indicates that 93% of public service procurement expenditure in 2013 was with businesses in the Republic of Ireland. This finding is based on its analysis of €2.742 billion expenditure across 64 large public service bodies involving over 35,000 suppliers.
It is important to state that open tendering is a two way street and provides Irish companies with opportunities to compete in an EU market estimated to be valued in excess of €2.4 trillion per annum. The open market regime offers opportunities for Irish companies to win business abroad and many Irish businesses are successful in this regard.
I would also point out that the OGP works with industry representative bodies to promote the engagement of Irish business in public procurement (including ISME, IBEC, SFA, Chambers Ireland, and CIF) as well as the Department of Jobs, Enterprise and Innovation, InterTrade Ireland, and Enterprise Ireland. Last year for example the OGP supported two 'Meet the Buyer' events - one in Belfast and the other in Dublin attended by over 1,100 businesses. In addition, the OGP proactively launched a campaign to get more businesses to register with e-tenders (the national tendering portal) which resulted in 12,300 new supplier registrations in 2014.
The OGP will continue to work with industry to ensure that winning government business is done in a fair, transparent and accessible way and to ensure that Government procurement policies are business friendly.
21. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will report on any meetings he has had or intends to have with the relevant unions on restoring public service pay; and if he will make a statement on the matter. [11686/15]
View answerThe Haddington Road Agreement forms the cornerstone of pay policy in the public service until 2016, when it is due to expire. The Agreement, which contains a number of measures directly affecting the pay of staff, is delivering and is making a significant contribution to the achievement of the Government's fiscal consolidation deficit target of below 3% GDP. The ongoing recovery in the economy is in no small part due to the contribution of public servants to keeping the cost of the public service paybill at sustainable levels.
Effective management of our fiscal affairs also requires the Government to plan for and address the public service pay and pension reduction measures which are based on emergency legislation. I have indicated my intention to enter into discussions later this year with the public service unions, and the representatives of public service pensioners, on successor arrangements to Haddington Road and on the gradual wind down of the Financial Emergency Measures in the Public Interest (FEMPI) Acts. The public service unions have also indicated their intention to submit pay claims this year, should economic circumstances permit. Any discussions on pay will, of course, take place in the context of the State's fiscal position and the pace of financial recovery for this year and 2016. My intention is to have the first quarter Exchequer returns available to me in advance of discussing with my Government colleagues the appropriate basis for entering discussions.
Public servants, in common with all employees, will have seen benefits this year to their take home pay arising from the tax reductions the Government has been able to introduce following its prudent management of the economy. I have, however, made it clear that public service pay rates will continue to be frozen in 2015 the 7th year in which there will have been no pay increases for public servants and, as we know, there have been 2 or 3 actual cuts in wages. It is now appropriate for the Government to plan for the development of a sustainable public service pay and pensions policy that will continue to support our ongoing economic recovery over the medium term. Having worked over the last number of years to restore the health of the public finances the Government is determined that any outcome of discussions with unions is consistent with our overall financial position.
22. Deputy Pádraig Mac Lochlainn asked the Tánaiste and Minister for Social Protection her views on whether it is appropriate for Foras Áiseanna Saothair – the Irish National Training and Employment Authority, FÁS - to advertise positions for sales and collecting agents, considering the positions are self-employed and the financial services companies have no responsibility to provide for the suite of rights available to directly employed employees, such as annual leave, sick pay and other benefits. [12278/15]
View answerBy advertising vacancies of this nature the Department of Social Protection through its Jobs Ireland service is affording the individual jobseeker the opportunity to decide personally whether they are interested in the self-employed vacancy position, rather than excluding potential options. It is important for the Department as a state organisation to endeavour to do its best to protect the interests of all our client groups therefore all self-employed/commission based vacancies are clearly advertised as self-employed/commission vacancies. All self-employed vacancies state that successful candidates will be responsible for making their own Tax and PRSI contributions.
23. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection the administrative procedures in place whereby persons can easily have their payment amended due to a change in their circumstances when they are participating in community employment, Tús - work placement initiative and the rural social scheme; and if she will make a statement on the matter. [12205/15]
View answerScheme participants are obliged to notify their employer (CE/Tús/RSS scheme) immediately of any change in their family circumstances. This change could relate directly to the scheme participant (i.e. marriage, civil partnership, co-habiting, divorce, separation or death of spouse), or it could be that their existing adult dependant has a change in circumstances (e.g. finds/loses employment; receives or stops receiving a social welfare payment in their own right or is absent from the state, etc.). There could be a change in child dependant circumstances (e.g. birth/adoption/death of child, child reaches 18, child no longer resident with the participant/in the State or child now receiving a DSP payment in their own right).
Most changes are straightforward and simply require the addition or cessation of the relevant dependant allowance. However, where the family income changes, the new rate of payment must be calculated to reflect what the person would be entitled to under their original social welfare payment arrangements. The main instances where this occurs is when a participant gains an adult dependant (i.e. marriage/civil partnership/cohabitation), or where the existing adult dependant has a change in income (i.e. gains or loses employment, or is no longer receiving a social welfare payment).
Once the participant has notified the employer that they have had a change in circumstances, a form will be issued to them for completion and forwarding to the Department for processing. The participant will be notified of the revised rate of payment and how it was calculated. The employer will be advised of the new rate and the effective date. Please note that the employment schemes concerned have a standard minimum payment rate of €208.00 per week.
The Department is currently updating its procedures for dealing with change of circumstances on such schemes to streamline and simplify the process for the participants.
24. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection the cost of increasing child benefit by €5 per week, €10 per week, €15 per week, and €20 per week; and if she will make a statement on the matter. [12213/15]
View answerIt is understood that the Deputy is seeking the costs associated with monthly, as distinct from weekly, increases by the amounts stated. The full year cost of increasing Child Benefit by €5, €10, €15 and €20 per month is €71.6 million, €143.1 million, €214.7 million and €286.2 million, respectively.
25. Deputy Fergus O'Dowd asked the Tánaiste and Minister for Social Protection the position regarding an application under the medical appliance benefit scheme and the dependent spouses scheme in respect of a person (details supplied) in County Louth; and if she will make a statement on the matter. [12222/15]
View answerA claim for medical and surgical benefit was received in respect of the person concerned on 26th February 2015. Qualification for treatment benefit is based on an individual's PRSI contribution history, or alternatively they may qualify as a dependent spouse.
The person concerned is not qualified in her own right as she does not have sufficient PRSI contributions paid or credited. Neither does she qualify as a dependent spouse as she has been in receipt of a contributory pension in her own right since 2006.
27. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection the proposed changes to the contributory State pension for 2020, whereby a person who has paid 520 contributions in ten years will qualify for one third of the maximum rate, and for each additional year of contributions a person will gain one 30th of the pension up to a maximum of 30 30ths or 30 years contributions; if this means a person will now need to be employed for 40 years and that only ten of those 40 years can be credited; and if she will make a statement on the matter. [12259/15]
View answerThe State pension is a very valuable benefit and is the bedrock of the Irish pension system. Therefore, it is important to ensure that those qualifying have made a sustained contribution to the Social Insurance Fund over their working lives and the reform measures introduced to date go somewhat toward that goal. To ensure that the individual can maximise their entitlement to a State pension, all contributions paid over their working life from when they first enter insurable employment until pension age is taken into account when assessing their entitlement and the level of that entitlement.
Since 1961, when contributory pensions were first introduced, the average contributions test has been used in calculating pension entitlement.
Therefore, to qualify for a state pension a person must:
- have at least 520 paid contributions; and
- satisfy a yearly average (a yearly average of 48 contributions paid and/or credited is required for a full rate pension).
There have been significant changes to the PRSI system over the years which have increased social insurance coverage to most classes of working people.
Accordingly, under the pension reform programme, it is planned to adopt a total contributions approach where the number of contributions recorded over a work life will more closely reflect the rate of pension payment received. For example, in a model where 30 years contributions (1,560) paid or credited would qualify a person for a maximum State pension (contributory), a person could accumulate 1/30th of a pension for each year of contributions up to a maximum of 30/30ths, if otherwise qualified for payment. This is just an illustration of a model as the new system is under development. It is not possible, therefore, at this stage to state with certainty the number of years that will be required for a full pension, but this will be announced well in advance of the introduction of changes.
The proposed date for the introduction of a move to a total contributions approach is 2020, but this may be subject to change as it is a very significant reform with considerable legal, administrative and technical challenges to be overcome in its implementation.
28. Deputy Michael Ring asked the Tánaiste and Minister for Social Protection the reason no response has issued from her Department in relation to an increase in the spouses and children's scheme in respect of a person (details supplied) in County Mayo who is on a rural social scheme. [12265/15]
View answerI can confirm that the child dependant payment due to the person referred to by the Deputy was approved for payment with effect from 1st September 2014. The weekly rural social scheme payment will be increased from 27th March 2015 and arrears of payment due issued on 13th March.
29. Deputy Joe O'Reilly asked the Tánaiste and Minister for Social Protection the assistances available to families having to bury a deceased indigent relative; the criteria used to decide on such benefit; the degrees of kinship that qualify for available assistance; if the personal means of that person is taken into account; and if she will make a statement on the matter. [12293/15]
View answerUnder the supplementary welfare allowance (SWA) scheme, the Department may make a single exceptional needs payment (ENP) to help meet essential, once-off and unforeseen expenditure which a person could not reasonably be expected to meet out of their weekly income. The Government has provided €29 million for the ENP scheme in 2015.
An application can be made under the ENP scheme for assistance with funeral and burial expenses. In 2014, the Department supported approximately 3,000 applicants with financial assistance towards these costs, at a provisional cost of some €4.6 million.
An ENP is a means tested payment payable at the discretion of the officers administering the scheme taking into account the requirements of the legislation and all the relevant circumstances of the deceased's family and that of the deceased person including any savings, property, insurance policies, etc. The Department official will also consider if a bereavement payment is available from any other source including former employer, credit union or trade union.
There are no specific requirements as regards degrees of kinship, each application is considered in light of the circumstances presented. The primary consideration is that there is an inability to pay the costs, in part or in full, by the family of the deceased person without causing hardship.
Any person who considers that they have an entitlement to an ENP under the SWA scheme following a bereavement should contact the Department's Community Welfare Service.
30. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the progress to date in determining an appeal for maternity benefit in the case of a person (details supplied) in County Kildare; if an oral hearing will be facilitated at the earliest possible opportunity; and if she will make a statement on the matter. [12346/15]
View answerThe Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 14th January 2015. 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 case 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 appeal 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 in relation to social welfare entitlements.
31. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Social Protection the contracts a person's businesses and-or subsidiaries (details supplied) have with her Department; the value of these contracts; their length; and the other companies that entered the tendering process which resulted in this person's companies winning the contract. [12360/15]
View answerThe procurement of supplies and services is essential to support the Department in providing high quality service to the public in a cost effective and efficient manner.
Public procurement is governed by a comprehensive regulatory, legal and procedural framework. In particular procurement practice is governed by EU Directive 18 of 2004 and supported by procurement guidelines published by the Department of Finance, and circulars of the Department of Finance and Department of Public Expenditure & Reform. In accordance with EU Directives, public contracts above certain values must be advertised EU-wide and awarded to the most competitive tender in an open and objective process. The guiding principles are to promote an open, competitive and non-discriminatory public procurement regime which delivers value for money. The Department also participates fully in ongoing initiatives by the Office of Government Procurement (OGP) to achieve procurement savings. Procurement policy for the Department is available on its website http://www.welfare.ie/en/Pages/Procurement-Policy.aspx.
The Department is compliant with best practice in the procurement of supplies and services. I regret it is not possible to provide the information requested by the Deputy without the details of the companies and subsidiaries concerned.
32. Deputy Shane Ross asked the Tánaiste and Minister for Social Protection the average age of chairpersons and non-executive directors of State or partially State-owned companies, of State bodies, of semi-State bodies, and of State agencies under the aegis of her Department on the State's payroll; the number of directors on the board of more than one such body; the number of women; and her plans to make savings from this area. [12560/15]
View answer33. Deputy Shane Ross asked the Tánaiste and Minister for Social Protection the total number of chairpersons and non-executive directors of State or partially State-owned companies, of State bodies, of semi-State bodies, and of State agencies under the aegis of her Department on the State's payroll; the total cost to the State from the pay-out to these non-executive directors, including fees, travel and other expenditure; and her plans to reduce the number of these chairpersons or directors. [12611/15]
View answerI propose to take Questions Nos. 32 and 33 together.
The statutory bodies operating under the aegis of the Department of Social Protection are the Citizens Information Board, the Pensions Ombudsman (which does not have a Board) and the Social Welfare Tribunal. In addition, the functions of the former Pensions Board have been replaced by the Pensions Authority, established March 2014 and the Pensions Council, set up this year.
The Citizens Information Board (CIB)
The position of Chairperson of the Board is currently vacant due to the expiry of the term of appointment of the previous incumbent on 3 March, 2015.
The legislative provisions governing appointments to the Citizens Information Board are contained in the Comhairle Act 2000, the Citizens Information Act 2007 and the Social Welfare and Pensions Act 2011. As set out in the legislative provisions, in making appointments to the Board, I am obliged to have regard to the objective of there being no less than 6 members who are female and no less than 6 members who are male. The current membership of the Board comprises of three males and one female.
There are eleven vacancies on the Board which will be filled in accordance with the legislative provisions.
The Pensions Authority
The Pensions Authority consists of a Chairperson, an official from the Department of Social Protection and an official from the Department of Finance - all of whom are female. No fees are payable to the members. Any travel and subsistence expenses will be remunerated at civil service rates.
The Pensions Council
A separate unpaid Pensions Council was established to advise me and my Department on matters of pension policy and give consumers greater input into pension policy. The Pensions Council was appointed on 3 February 2015. The Pensions Council consists of a Chairperson, the Pensions Regulator, an official from the Department of Social Protection, the Department of Public Expenditure and Reform, a member nominated by the Minister for Finance as a representative of the Central Bank and seven members of the Council. Qualifications and backgrounds of the Pension Council members selected via the PAS process. There are six male and six female members of the Council. No expenses have accrued to the State to date.
Social Welfare Tribunal
The Board of the Social Welfare Tribunal consists of a Chairperson and four ordinary members, two of whom are nominated by the Irish Congress of Trade Unions (ICTU) and two by the Irish Business Employer Confederation (IBEC). Legislation provides that the four ordinary members of the Tribunal are appointed by the Minister on the recommendation of the two relevant bodies, ICTU and IBEC. The Chairperson is sourced by the Department of Social Protection by way of a recommendation from the Labour Court with regard to a particular candidate's suitability. When requesting nominations, the Department has requested a female nominee in accordance with the Government's Gender Balance Policy. There is one female sitting on the board. The Chairperson and board members of the Social Welfare Tribunal are not on the Department's payroll although they receive fees when a hearing or meeting is held. Travel and subsistence fees are in line with Department of Public Expenditure and Reform guidelines.
A breakdown of fees applicable is outlined in the table.
|
Agency |
Board Members |
Fees € |
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Citizen Information |
Chairperson Board Members |
Annual fee not drawn down during the last 5 years. €5,985 per annum (not payable to civil servants) |
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Social Welfare Tribunal |
Chairperson Appearance Meeting Board Members Appearance Meeting |
€423.65 per day €69.77 per day €129.87 per day €64.94 per day |
There are no Directors/board members serving on the boards of the statutory bodies under the aegis of the Department that serve on more than one such body. The Department does not hold data relating to the average age of chairpersons and board members of the bodies referred to above.
34. Deputy Michael McGrath asked the Minister for Finance if financial institutions are required under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 to seek documents of personal identification from persons who are directors, but not signatories, in respect of an account held with the financial institution by a public company limited by guarantee; and if he will make a statement on the matter. [12342/15]
View answerSection 33 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, sets out the requirements in relation to customer due diligence ('CDD'). Pursuant to section 33, designated persons are required to identify the customer and verify the customer's identity on the basis of documents (whether or not in electronic form), or information, that the designated person has reasonable grounds to believe can be relied upon to confirm the identity of the customer.
The Central Bank has advised me that the legislation does not set out the requirements in relation to CDD to be carried in respect of customers that are corporate entities and as such, designated persons will take a risk based approach in determining how they comply with section 33 in respect of customers that are corporate entities.
My Department has published Guidelines on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing on the application of the 2010 Act. The guidelines are designed to guide designated persons on the application of the relevant provisions of the Act. The Guidelines are available on my Department's website at http://www.finance.gov.ie/sites/default/files/Criminaljustice2012%20as%20per%20Finance%20Website.pdf.
35. Deputy Thomas P. Broughan asked the Minister for Finance the contracts a person's businesses and-or subsidiaries (details supplied) have with his Department; the value of these contracts; their length; and the other companies that entered the tendering process which resulted in this person's companies winning the contract. [12186/15]
View answerThe information requested by the Deputy could not be collated in the time available. I will respond directly to the Deputy as soon as possible.
36. Deputy Pearse Doherty asked the Minister for Finance the reason Irish mortgage holders are paying a higher interest rate than elsewhere in the European Union; his plans to tackle this issue; and if he will make a statement on the matter. [12191/15]
View answerFirstly, 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. I have no statutory role in relation to regulated financial institutions passing on the European Central Bank interest rate change or to the mortgage interest rates charged. It is a commercial matter for each institution concerned. It is not appropriate for me, as Minister for Finance, to comment on or become involved in the detailed mortgage position of mortgage holders.
The Central Bank has responsibility for the regulation and supervision of financial institutions in terms of consumer protection and prudential requirements and for ensuring ongoing compliance with applicable statutory obligations. The Central Bank has no statutory role in the setting of interest rates by financial institutions, apart from the interest rate cap imposed on the credit union sector in accordance with the provisions of the Credit Union Act, 1997 and the requirement to be notified of penalty or surcharge interest imposed in respect of arrears.
As I stated in previous Parliamentary Questions, a previous Deputy Governor indicated that, within its existing powers and through the use of persuasion, the Central Bank would continue to engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds and this is a course of action I expect the Central Bank to continually appraise.
The Deputy should be aware that the Governor of the Central Bank, Patrick Honohan, in his opening statement to the Oireachtas Joint Committee on Finance, Public Expenditure and Reform last November stated that, as in most advanced economies, including Ireland, it has long been understood that tight administrative control over the rates charged by banks would be counterproductive in ensuring a sufficient flow of properly priced credit on a lasting basis. Such control would strongly discourage new entrants. In this regard, ongoing competition in the banking sector will be crucial in ensuring that the economy is provided with efficient and cost effective banking services. In this regard, there has been some movements on mortgage interest rates of late by a number of institutions which suggest that the market may well be entering a new and more competitive phase.
The mortgage interest rates that financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned. This interest rate is determined taking into account a broad range of factors including European Central Bank base rates, deposit rates, market funding costs, the competitive environment and an institution's overall funding. However, as part of the Central Bank's work on mortgage arrears, lenders were asked to consider all avenues to help customers in arrears, including interest rate reductions.
37. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding the Irish Bank Resolution Corporation; and if he will make a statement on the matter. [12194/15]
View answerFirstly, I would like to thank Mr Lynch for his email in relation to IBRC.
The Special Liquidators continue to implement an orderly and efficient wind down of Irish Bank Resolution Corporation Limited (in Special Liquidation) in accordance with the provisions of the IBRC Act and the instructions issued by me under that Act.
Any interference by the State in the Special Liquidation of IBRC which might impinge on the Special Liquidators overarching objective of maximising the recovery for all creditors of the bank could be challenged by other creditors in the courts. However, since the special liquidation of IBRC in February 2013, in line with statutory requirements, the Special Liquidators are obliged to report any wrongdoing they have encountered in their investigations to the appropriate authorities. As both the Deputy and Mr Lynch are aware, there are a number of criminal proceedings currently before the courts relating to wrongdoing which has been uncovered to date.
By February 2015, loans with a par value of €21.7bn had been prepared, brought to market and ultimately sold through a series of sales processes which have delivered a very positive result in maximising the return to the creditors of IBRC, including the State.
A significant amount of work remains to complete the liquidation of IBRC including, among other tasks:
- migrating activities and servicing of sold assets to their new owners and servicers;
- managing and realising value for the remaining loan book with a par value of €3.6bn;
- liquidating or selling the remaining subsidiary interests;
- continuing to manage significant levels of ongoing litigation and new litigation as it arises; and
- managing the operational wind down of IBRC's infrastructure in line with the continued liquidation.
Further detail regarding the progress of the liquidation and remaining tasks to completion has been provided as part of the Progress Update Report which was released by the Special liquidators earlier this month and is available on the Department of Finance website.
As the Special Liquidators maximise the proceeds of the liquidation, it is important that they have a comprehensive view of the creditors who ultimately may be entitled to these proceeds. To this end, the Special Liquidators have published advertisements and written to those known creditors in order to finalise their claims in the liquidation. Creditors in the UK and Ireland have until 31 March 2015 to submit their claims and those creditors in the US have until 31 May 2015.
Once all claims have been submitted, they will be reviewed in detail and adjudicated on by the Special Liquidators. In order to finalise this process, further information may be sought from some creditors in order to validate their claim.
The Special Liquidators are unable to comment at this stage both on the level of proceeds that will ultimately be generated from the liquidation and on the level of valid creditor claims that will ultimately be received in respect of the liquidation. It is the balance between the proceeds generated and level of valid claims that will ultimately determine the dividend to which each creditor may be entitled.
The ultimate level of dividend paid, if any, to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known.
For the payment of proceeds from the liquidation, unsecured creditors will rank in priority to the holders of subordinated debt. The priority for the distribution of assets under the Companies Acts is generally:
Costs and expenses of the ongoing liquidation;
Preferential creditors, including certain taxes and employee and pension claims arising prior to the date of liquidation (these claims are certain to be paid in full);
Amounts owing to NAMA under the Facility Deed acquired from the Central Bank which were secured by a floating charge over the bank's assets (these claims have been fully repaid and the floating charge has been released)
Unsecured creditors, including: - Debts owing to the Minister/NTMA under ELG- Debts owing to the Deposit Guarantee Scheme; Unguaranteed debt/depositors
Unknown, including:
Local authority development bonds
Suppliers/other normal unsecured creditors
Employees that are not preferential creditors
Contingent creditors and other potential costs principally relating to litigation, etc.
Subordinated creditors
Members of the company - the Minister currently holds 100% of all shares and preference shares in the company.
