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Thursday, 23 Apr 2015

Written Answers Nos. 32-39

Irish Water Administration

Questions (32)

Richard Boyd Barrett

Question:

32. Deputy Richard Boyd Barrett asked the Minister for the Environment, Community and Local Government if he will provide a full report on whether the decision to hand over personal details of council tenants to Irish Water, and the subsequent decision to legislate for An Post to hand over names and addresses to Irish Water, is in compliance with data protection legislation; and if he will make a statement on the matter. [15781/15]

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Written answers

Since 1 January 2014, Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels. Under the Water Services Acts 2007-2013, Irish Water has statutory powers to request its customers and certain specified persons or bodies to provide it with information so that Irish Water can perform its functions under these Acts, including the collection of data to develop its customer database. In particular, section 26 of the Water Services Act 2013 provides Irish Water with the power to obtain information on its customers from other third parties as listed in the section, including a local authority, the Revenue Commissioners, the Private Residential Tenancies Board, the Property Services Regulatory Authority, the Local Government Management Agency, the Minister for Social Protection or any other person or body to be prescribed by the Minister. Prior to prescribing An Post under this provision, I was required to consult with the Data Protection Commissioner.

Irish Water is required to manage all personal data in accordance with the Data Protection Acts 1988 and 2003. Irish Water has an on-going engagement with the Office of the Data Protection Commissioner which has worked closely with Irish Water to agree the process for the capture, storage and usage of customer data.

Pyrite Issues

Questions (33)

Clare Daly

Question:

33. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government the discussions or contacts his officials have had with the Department of Finance in 2015, in relation to overcoming the difficulties of the criteria outlined in the statutory instrument to enable homeowners with significant damage as a result of pyrite to avail of their legitimate local property tax exemption. [15676/15]

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Written answers

Section 10A of the Finance (Local Property Tax) Act 2012 (as amended ) provides for a temporary exemption of at least three consecutive years from the charge to Local Property Tax (LPT) for residential properties that have been certified as having “significant pyritic damage”. The requirements needed to demonstrate “significant pyritic damage” are set out in the Finance (Local Property Tax) (Pyrite Exemption) Regulations 2013 and are consistent with the recommendation set out in the Report of the Pyrite Panel (July 2012) which recommended that an exemption from the LPT should be provided for dwellings where damage from pyritic heave has been proven by testing.

Nevertheless, having regard to the costs associated with testing, my Department is engaging with the Department of Finance in order to explore possible alternatives to the requirement for testing. In this context, I understand that my colleague, the Minister for Finance, has initiated a review of the operation of the LPT. I understand that the review will primarily have regard to recent residential property price developments, the overall yield from LPT and the desirability of achieving relative stability in LPT payments. The review will also address a number of issues which have arisen in relation to the efficient and effective administration of the LPT, among which is likely to be the matter of the operation of the pyrite exemption provisions. Further discussions in this matter will take place in due course between my Department and the Department of Finance.

Electoral Reform

Questions (34)

David Stanton

Question:

34. Deputy David Stanton asked the Minister for the Environment, Community and Local Government his views that the design of ballot papers may affect the outcome of an election; and if he will make a statement on the matter. [15739/15]

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Written answers

I refer to the reply to Question No. 10 on today’s Order Paper.

Dormant Accounts Fund

Questions (35)

Éamon Ó Cuív

Question:

35. Deputy Éamon Ó Cuív asked the Minister for the Environment, Community and Local Government the amount of unallocated funds currently in the dormant accounts fund; the reason for their non-allocation, other than the statutory reserve; and if he will make a statement on the matter. [15674/15]

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Written answers

The Dormant Accounts Act 2001, together with the Unclaimed Life Assurance Policies Act 2003 and the Dormant Accounts (Amendment) Acts 2005-2012, provide a framework for the administration of unclaimed accounts in credit institutions (i.e. banks, building societies and An Post) and unclaimed life assurance policies in insurance undertakings. Information from the National Treasury Management Agency, which manages the Dormant Accounts Fund, indicates that the net value of uncommitted funds in the Account as of end March 2015 is €111.46 million. This does not include a Reserve Fund, currently standing at some €64.18 million.

The level of uncommitted funds in the Account is dictated by a number of factors, in particular the three year aggregate and Ministerial level expenditure ceilings, which have been put on a statutory basis in the Ministers and Secretaries (Amendment) Acts and which must not be breached.

In this connection, the Deputy will be aware that, under Government Accounting procedures, disbursements on dormant accounts measures are paid in the first instance “up front” from a Department’s Vote in the same way as with any other spending programme. Therefore, Government Departments have to source funding for dormant accounts programmes from their Exchequer allocation in the annual Estimates. Once expenditure takes place, either on administration of the measure, or by the project itself, it is reimbursed to the Exchequer from the Dormant Accounts Fund in accordance with the Dormant Accounts Acts, in the form of Appropriations-in-Aid payable through the relevant Department’s Vote. While the costs associated with dormant accounts measures are Exchequer neutral, Government Departments cannot spend Appropriations-in-Aid directly themselves once they are reimbursed from the Fund. These are instead refunded to the central Exchequer. In addition, the Dormant Accounts Fund is not a source of mainstream funding and the complementary nature of the Dormant Account Funds can impact on funds available for mainstream projects within Departmental Votes.

In accordance with the Dormant Accounts (Amendment) Act 2012, a new Disbursement Scheme was approved by Government in December 2013. The 2012 Act also provides for the preparation of an Action Plan to give effect to the Scheme. The current Plan includes some €24 million of measures across a range of Government Departments and Agencies that will provide diverse supports for disadvantaged communities, including measures under my Department to promote social enterprise and innovation, both urban and rural, and measures to promote youth employment, employability and entrepreneurship.

Pyrite Resolution Board Remit

Questions (36)

Clare Daly

Question:

36. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if he has provided guidance to the Pyrite Resolution Board in relation to the manner in which it is dealing with homeowners whose properties have a damage condition rating of 1, particularly where these properties are a dwelling that has been approved for remediation. [15675/15]

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Written answers

The pyrite remediation scheme, which was first published by the Pyrite Resolution Board in February of 2014, was developed having regard to, inter alia, the recommendations set out in the Report of the Pyrite Panel (July 2012). The full conditions for eligibility are set out in the scheme, which is available on the Board’s website (www.pyriteboard.ie). It is a condition of eligibility under the scheme that an application to the Board must be accompanied by a Building Condition Assessment, carried out by a competent person in accordance with I.S. 398-1:2013 Reactive pyrite in sub-floor hardcore material – Part 1: Testing and categorisation protocol, with a Damage Condition Rating of 2. There are no proposals to amend this eligibility criterion.

My Department understands that, in a number of cases, dwellings which had a Damage Condition Rating of 1 when their Building Condition Assessments were first completed have now progressed to a Damage Condition Rating of 2; these dwellings have now been included in the pyrite remediation scheme.

While dwellings with Damage Condition Ratings of 1 do not qualify under the scheme, some may be considered in accordance with the exceptional circumstance provisions set out in section 17 of the Pyrite Resolution Act 2013. Section 17 provides that exceptional circumstances may apply where:

- failure to include a dwelling with a damage rating of 1 in the scheme may result in damage to a dwelling which is being remediated under the scheme; or

- pyrite remediation work is causing or may cause damage to the dwelling with the damage rating of 1.

Where a dwelling with a Damage Condition Rating of 1 adjoins a dwelling with a Damage Condition Rating of 2, the Housing Agency will be notified and will consider if exceptional circumstances apply when the Remedial Works Plan is being drawn up; the Board will be informed of any recommendation for a decision in the matter.

Departmental Strategies

Questions (37)

Bernard Durkan

Question:

37. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which efforts are being made to reactivate various developments in towns and villages which were suspended in the wake of, or arising from, the economic downturn, with particular reference to the need to maximise the availability of accommodation for the retail and commercial sectors; and if he will make a statement on the matter. [15682/15]

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Written answers

The downturn in economic activity associated with the recession has resulted in significant numbers of shop closures and vacant units in town centres throughout the country. Other factors, such as upward only rent reviews, parking charges, rising energy costs and on-line trading, have also been cited as factors affecting the viability of small and medium-sized businesses in the retail sector. To help address this issue, a number of initiatives have been taken by my Department in recent years, as follows:

- local authorities were requested to exercise restraint, or where possible, to reduce commercial rates and local charges to assist local businesses in the current economic climate – the vast majority of local authorities have responded positively to this request,

- revised development contribution guidelines were introduced in January 2013 requesting planning authorities to put in place reduced development contributions to support town centre development and incentivise activity in the areas prioritised for development in the relevant core strategy,

- the publication of new guidelines on retail planning in April 2012 aimed at promoting and supporting the vitality and viability of city and town centres. These guidelines retained the previous caps on store size in less populated and smaller towns, and were aimed at striking the right balance to ensure that local monopolies are not created in smaller towns which would be detrimental to competition.

In terms of Government action other than by my Department in providing assistance to retail businesses and stimulating economic activity in local communities, a number of measures have been introduced since 2011, including:

- the introduction of the 9% rate of VAT on certain goods and services,

- the halving of the lower rate of employers’ PRSI,

- the introduction of the Microenterprise Loan Scheme and Credit Guarantee Scheme, both of which schemes have had take-up from the retail sector, and

- the extension of seed capital and the employment and investment incentive scheme to the retail sector.

My Department remains committed to working with other Government Departments, with local government and with other community development and enterprise stakeholders with a view to providing a clear framework for addressing urban centre decline and its impacts on the retail sector, and will continue to explore all relevant options for further action in this regard.

Furthermore, Ireland has been allocated €1.2 billion of Structural Funds from the European Regional Development Fund (ERDF) and the European Social Fund (ESF) for the period 2014 – 2020. The new ERDF regulation requires an increased focus on sustainable urban development and urban regeneration. In its Partnership Agreement with the European Commission on the new ERDF regulation, the Government has agreed that an urban development fund with a total value of €80million will be available over the duration of the programme. Local authorities will be invited to bid for this ERDF support for projects that will contribute to the social, economic and environmental development of their urban areas. The first call for proposals will be made shortly, and it will be a matter for the local authorities to nominate appropriate projects for such funding.

Pyrite Remediation Programme

Questions (38)

Alan Farrell

Question:

38. Deputy Alan Farrell asked the Minister for the Environment, Community and Local Government his plans in relation to ongoing funding for the Pyrite Resolution Board and the Housing Agency, with regard to the remediation of homes affected by pyrite. [15558/15]

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Written answers

An allocation of €10 million has been provided in my Department’s Estimate for 2015 to fund the operation of the pyrite remediation scheme this year and I am satisfied that the Pyrite Resolution Board will have the resources required to meet the level of activity anticipated for the year. The post-2015 funding requirement will be considered in the context of the 2016 Estimates later this year and will have regard to developments under the scheme over the next few months as well as the level of activity anticipated by the Board in 2016.

Since the pyrite remediation scheme was first published in February 2014, the Pyrite Resolution Board has received over 700 completed applications and applications continue to be received currently at a rate of 5 - 6 per week. Of the 700 applications, 342 dwellings have been accepted into the scheme with technical consultants assigned to them and the necessary preparatory work, tendering or remediation either underway or imminent.

A pilot project comprising 5 dwellings was completed in late 2014 while 3 remediation projects of 69 dwellings are currently underway on site; a further remediation project, totalling 32 dwellings, will commence on site later this month. Also this month, tender proposals have been received, or are due, for 3 more remediation projects, totalling another 59 dwellings, while an additional 3 remediation projects, totalling a further 62 dwellings, will go out to tender.

Mortgage to Rent Scheme Administration

Questions (39)

Richard Boyd Barrett

Question:

39. Deputy Richard Boyd Barrett asked the Minister for the Environment, Community and Local Government if he will provide details of the roll-out of the mortgage to local authority renting scheme and the apparent difficulties with this scheme; and if he will make a statement on the matter. [15783/15]

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Written answers

On foot of the recommendations of the Keane Report on mortgage arrears and a successful pilot scheme, my Department launched a national Mortgage to Rent (MTR) scheme for borrowers with mortgages from private institutions in June 2012. The scheme targets low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. Recognising that similar mortgage arrears distress was being experienced by people with mortgages borrowed from local authorities and recognising the scale of the problem, the Government rolled out a national Local Authority Mortgage to Rent (LAMTR) scheme in February 2014.

The LAMTR scheme allows local authorities to offer the mortgage to rent scheme to local authority mortgage holders with unsustainable mortgages. This enables families to stay in their home and their established community. Surrendering the ownership equity in a home is a very difficult decision for a family; however, the mortgage to rent option does provide families with stability and continuity, after an often long period of financial turmoil. Ownership of the home transfers to the local authority and the family pays a differential rent. My Department is keeping the operation of the LAMTR scheme under constant review.

The LAMTR scheme is just one of a range of short term and long term solutions available to local authority mortgage holders in arrears. The Mortgage Arrears Resolution Process is being implemented across all local authorities. My Department issued revised guidelines to local authorities for dealing with mortgage arrears within the local authority sector in June 2014. Dealing with Mortgage Arrears – A Guide for Local Authorities is available on my Department’s website by clicking on the following link:

http://www.environ.ie/en/Publications/DevelopmentandHousing/Housing/FileDownLoad,30943,en.pdf.

In cases of acute mortgage distress, homeowners also have the option of seeking to avail of the legal process now also in place to deal with personal insolvency. The most important step any family in arrears can take is to engage early with the Arrears Support Unit of the local authority. Solutions are available and advice should be sought as early as possible.

To date, 88 cases have been concluded under the MTR scheme, while the LAMTR scheme has seen 81 cases concluded.

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