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Thursday, 26 Mar 2015

Written Answers Nos. 100-109

Tax Reliefs Application

Questions (100)

Michael McGrath

Question:

100. Deputy Michael McGrath asked the Minister for Finance the number of persons who have taken up the special assignee relief programme in each year since its inception; if he will provide a breakdown by nationality of persons who have taken up the scheme; and if he will make a statement on the matter. [12650/15]

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Written answers

I am informed by the Revenue Commissioners that they will shortly finalise a report for presentation to me in relation to the Special Assignee Relief Programme for 2012 and 2013, which I intend to publish in due course.  I will draw the Deputy's attention to the report when available.

I am also informed by the Revenue Commissioners that a similar report will be prepared in relation to 2014.  However, as the tax returns for those who availed of the relief in 2014 are not due for submission to Revenue until later this year, the 2014 report will not be finalised until early 2016 at the earliest.

I would point out that a review of the Special Assignee Relief Programme was published on Budget Day. This report contained some statistics in relation to the take-up of the scheme. The report can be found on the Department's website at: http://www.finance.gov.ie/sites/default/files/Report_on_SARP_final.pdf  

Stability and Growth Pact

Questions (101)

Michael McGrath

Question:

101. Deputy Michael McGrath asked the Minister for Finance the manner in which the expenditure rules under the fiscal treaty will impact on Ireland's budgetary decisions for 2016 and future years; the concessions in respect of these rules that have been provided to other countries; the leeway which is being sought by Ireland; and if he will make a statement on the matter. [12651/15]

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Written answers

The expenditure rule referred to by the Deputy was introduced into the Stability & Growth Pact by the six-pack reforms adopted in 2011. The 'expenditure benchmark' as it is generally known was also referenced in the Fiscal Compact.

Budget 2016 will be the first budget that Ireland will produce whilst subject to the revised preventive arm of the Stability & Growth Pact.  The rule under the preventive arm requires Ireland to be on an appropriate adjustment path to the Medium Term Budgetary Obligation (MTO) and compliance with this rule is assessed in two ways. The first assessment requires a minimum improvement in the structural balance of more than 0.5% of GDP per annum until a Member State reaches its (MTO), which in Ireland's case is a balanced budget in structural terms.  Importantly, in an Irish context, this is dependent on the estimation of the output gap, something which has proven volatile for small economies, particularly with open labour markets.

The second assessment is the expenditure benchmark which links growth in expenditure to the potential growth rate of the economy.  Additional expenditure above the benchmark has to be paid for through the introduction of new discretionary revenue measures.  The benchmark also contains a feature than is designed to assist with achieving the minimum structural improvement.

Exchanges between my officials and the Commission has led to the proposal of more sensible population projections which will support estimates of potential output over the medium-term. This change is expected to assist with compliance with both of the above rules. Following the usual course of action for amending aspects of the harmonised methodology for estimating potential output, the relevant committee - the Output Gap Working Group - is considering a solution to the issue of population projections and the estimation of the level of structural unemployment to address concerns faced by Ireland and a number of other Member States.

At the moment, the reference rate used in the calculation of the expenditure benchmark is based on a ten year average of potential growth which was calculated in 2013 when both the outturn and outlook for our economy's growth potential was considerably weaker.  What I raised at the recent Eurogroup meeting was the use of outdated estimates of potential growth in the calculation of this metric which could lead to sub-optimal fiscal decisions being made. 

My officials are in ongoing technical discussions with the European Commission and other Member States to both improve estimates of potential output and to establish a more appropriate calculation of the reference rate.  This work will take place through the appropriate working groups and official channels and as I do not want to prejudice these discussions, I will not be elaborating any further details at this time.

As far as I am aware, no Member States have been provided concessions in the application of the preventive arm of the SGP. 

Finally, I would emphasise that I support the revised fiscal rules.  What I will be seeking from the Commission and colleagues from other Member States is a more sensible application of the rules which will enhance the credibility of fiscal policy decision making.

Departmental Contracts Data

Questions (102)

Catherine Murphy

Question:

102. Deputy Catherine Murphy asked the Minister for Finance if he will provide a list, in tabular form, of all contracts and tenders awarded by his Department to a company (details supplied) since 1 January, 2004, including any such awarded singularly or as a joint bid or consortium including said company; if he will indicate which Department, agency or semi-State company was the contacting party in each case; the value in each case; the purpose of each contract; and if he will make a statement on the matter. [13110/15]

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Written answers

My Department and the agencies under its aegis have not awarded any contracts or tenders to a company (details supplied) since 1 January 2004.

Coastal Erosion

Questions (103)

Pearse Doherty

Question:

103. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if his attention has been drawn to the significant levels of coastal erosion which are occurring at a coastal location (details supplied) in County Donegal; if he acknowledges the suffering and anxiety which this situation is causing the local coastal community; his plans to address this situation; and if he will make a statement on the matter. [12542/15]

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Written answers

Local flooding and coastal erosion issues are matters for Local Authorities to investigate and address in the first instance and Donegal County Council (DCC) may carry out flood mitigation and coastal protection works using its own resources.

I can assure the Deputy that the Government and I are cognisant that coastal erosion may in some instances give rise to a significant threat to infrastructure, properties and/or public safety, which can cause hardship and concern to those affected. The Government Decision of 11th February, 2014 allocated total funding of up to €19.6m for the repair of existing coastal protection and flood defences damaged in the severe weather in late 2013 and early 2014 based on submissions made by the relevant local authorities to the Department of the Environment, Community and Local Government. A total sum of €662,000 was allocated to DCC under the Government Decision. The local authorities submitted to the Office of Public Works (OPW) programmes of repair works setting out how they intended to spend their allocations. DCC's programme of works included for works in four locations in the Inishowen area but it did not include works at Ballyliffin and as a result there is no specific provision for works at Ballyliffin in the total sum of €662,000 allocated to it under the Government Decision. As it was not included in DCC's programme, any proposals for works in that location must be considered outside of the Government Decision.

The OPW operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial, are published on the OPW website, www.opw.ie. It is not available for repair of damaged infrastructure or for maintenance of existing flood defence or coastal protection assets. A Local Authority may apply to the OPW for support under the scheme having regard to those eligibility criteria. Application forms are available on OPW's website under Flood Risk Management and decisions are made having regard to the overall availability of funding for flood risk management.

Office of Public Works Projects

Questions (104, 105, 106)

Sean Conlan

Question:

104. Deputy Seán Conlan asked the Minister for Public Expenditure and Reform the contacts he or his officials have held with the rural and economic development division of the Department of Agriculture, Food and the Marine and with the Department of Social Protection to ensure that a proper consultation process is entered into between the Office of Public Works and the five property owners who have expressed an interest in providing premises to the Department of Social Protection to ensure the retention of that Department's offices in Ballybay, County Monaghan; and if he will make a statement on the matter. [12653/15]

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Sean Conlan

Question:

105. Deputy Seán Conlan asked the Minister for Public Expenditure and Reform if he took cognisance of the fact that the property owners in Ballybay in County Monaghan who offered their premises to the Department of Social Protection were willing to give an undertaking to carry out all upgrading works at their own expense when reaching a decision to disregard all five properties as being unsuitable; and if he will make a statement on the matter. [12655/15]

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Sean Conlan

Question:

106. Deputy Seán Conlan asked the Minister for Public Expenditure and Reform if he will clarify comments (details supplied) that it would not be financially sustainable based on prevailing rental levels in circumstances in which rental costs for proposed offices elsewhere are higher than they are in Ballybay, County Monaghan; and if he will make a statement on the matter. [12656/15]

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Written answers

I propose to take Questions Nos. 104 to 106, inclusive, together.

Location strategies for any given public services commences with an assessment by the service provider of their operational requirements.

As the Deputy is aware from replies to previous Parliamentary Questions on this matter, the Commissioners of Public Works assessed a number of premises in Ballybay in the context of a proposal by the owners of certain properties to upgrade their buildings to the required modern standard at their own cost, but this is not deemed a feasible option as none of the properties currently meet the changing operational or accommodation needs of the Department of Social Protection.

I am advised by the Commissioners that the proposed new location in Monaghan town will fully address these operational requirements, and the Department of Social Protection concur.

Public Sector Staff Remuneration

Questions (107)

Joe Costello

Question:

107. Deputy Joe Costello asked the Minister for Public Expenditure and Reform his plans to commence talks with the public sector unions with a view to addressing the cutbacks imposed during the troika years; if these talks will also address the specific reductions in the salaries and allowances of new entrants into the public sector; and if he will make a statement on the matter. [12403/15]

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Written answers

The  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 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.  

With regard to new entrants, the 10% reduced rates of pay were one of a number of measures introduced over the period since the fiscal crisis which directly affected the pay of staff.  The reductions in starting pay were introduced as part of the National Recovery Plan in order to reduce the Public Service Pay and Pensions Bill.  However, this Government has since provided for an agreed process under the Haddington Road Agreement for the amalgamation of pay scales to address any imbalance in pay scales between those who entered the public service as new entrants after January 2011 with those applying to public servants before January 2011.  The revised scales provide for assimilation of new entrant public servants to a single applicable scale to each grade and represent a significant redressing of any imbalance particularly in the context of the savings required under the Haddington Road Agreement.

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.

Legislative Process

Questions (108)

Pearse Doherty

Question:

108. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the number of pieces of legislation that were submitted for pre-legislative scrutiny by his Department since 2011; his plans to allow pre-legislative scrutiny for any upcoming pieces of legislation from his Department; and if he will make a statement on the matter. [12418/15]

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Written answers

In response to the Deputy's question the following table outlines the Bills initiated in my Department that have been subject to the pre-legislative scrutiny procedure in the Oireachtas:

Bills initiated by the Department of Public Expenditure and Reform

Number

Name

Purpose

Subject to Pre-Legislative Scrutiny

No. 33 of 2013

Houses of the Oireachtas (Inquiries, Privileges and Procedures) Act 2013

To provide for the exercise by either House or both Houses of the Oireachtas (or by a Committee of either House or both Houses) of a power to conduct an inquiry into specified matters, to provide for matters relating to compellability, privilege and procedure in the Houses (and in Committees of either House or both Houses), and to provide for related matters.

Yes

No. 30 of 2014

Freedom of Information Act 2014

Reform of Freedom of Information

Yes

Bill No. 59 of 2014

Registration of Lobbying Bill 2014

To provide for establishing and maintaining a register of persons who carry on lobbying activities; to provide for a code of conduct/to amend the Ethics in Public Office Act 1995; and to provide for related matters

Yes

Not Enacted yet

Bill No. 75 of 2014

Houses of the Oireachtas (Appointments to Certain Offices) Bill 2014

To amend and extend the Staff of the Houses of the Oireachtas Act 1959 and the Houses of the Oireachtas Commission Act 2003 and to provide for related matters

Yes

No 14 of 2014

Protected Disclosures  Act 2014

To make provision for and in connection with the protection of persons from the taking of action against them in respect of the making of certain disclosures in the public interest and for connected purposes.

Yes

 

The upcoming Public Sector Standards Bill (2015) will be subject to pre-legislative scrutiny following receipt of Government approval of the general scheme in the coming weeks.

Departmental Contracts Data

Questions (109)

Catherine Murphy

Question:

109. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he will provide a list, in tabular form, of all contracts and tenders awarded by his Department to a company (details supplied) since 1 January 2004, including any such awarded singularly or as a joint bid or consortium including said company; if he will indicate which Department, agency or semi-State company was the contacting party in each case; the value in each case; the purpose of each contract; and if he will make a statement on the matter. [12544/15]

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Written answers

In response to the Deputy's question I can confirm that no contracts or tenders were awarded to the company named by my Department since its establishment.

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