Written Answers Nos. 70-80
70. Deputy Martin Heydon asked the Minister for Finance the options that could help to alleviate the additional burden of value added tax on personal insolvency deals which, while covered by the creditor, are proving a further obstacle to securing agreement on deals by creditors; and if he will make a statement on the matter. [19057/15]
View answerI have been advised by the Revenue Commissioners that VAT applies to the services of all insolvency practitioners including the activities carried out by liquidators, receivers, examiners and Personal Insolvency Practitioners (PIPs) involved in the Debt Settlement Arrangements and Personal Insolvency Arrangements as provided for in the Personal Insolvency Act 2012. The Revenue Commissioners have considered in the past the nature of the services provided by PIPs and concluded that the services provided by a PIP are not ones that qualify for exemption in accordance with the VAT Directive, Irish VAT Law, and relevant decisions of the European Court of Justice. The fees charged by insolvency practitioners, including PIPs, are liable to VAT at the standard rate, currently 23% (Section 46 Value-Added Tax Consolidation Act 2010). Under a Personal Insolvency Arrangement, the Personal Insolvency Practitioner's fees are ultimately deducted from the dividend payments to the creditors under the arrangement rather than charged to the debtor. As the debtor is availing of a Personal Insolvency Arrangement because of their insolvent position, it is the creditor who is bearing the ultimate cost of the fees and the VAT on the fees.
71. Deputy Michael McGrath asked the Minister for Finance if he will provide details, in cash terms for each bank that received State support, of the amount of capital provided or reserved to address the issue of principal dwelling house mortgage arrears; the quantum of such support that has been used to date for this purpose; and if he will make a statement on the matter. [19065/15]
View answerIn early 2011, as part of the agreement with the External Partners, the Central Bank commissioned a detailed evaluation of the possible loan losses that would be incurred by banks in a severe stress scenario. All the loan books were examined, including the residential mortgage books in Ireland and the UK. The results of this work were key inputs into the capital requirements identified in PCAR 2011, which totalled €24bn. Total losses modelled under the stress scenario on Irish mortgages were €9bn. This comprised €2bn at Bank of Ireland, €4.4bn at AIB/EBS and €2.6bn at Permanent TSB. However, in the analysis, there was never any specific provision made for the purpose of providing relief for distressed family home mortgages.
I have been informed that the relevant institutions disclose in their financial statements information on residential mortgages, impaired loans and provisions and separately details of Regulatory Capital held as a buffer for potential future losses. Each institution has disclosed the following information:
AIB
All relevant disclosures in relation to AIB's residential mortgages, including impaired loans and provisions, are made in the Risk Management section, pages 51 to 156, of AIB's 2014 Annual Financial Report published on 5 March 2015. This report is available on the following link: http://investorrelations.aib.ie/content/dam/aib/investorrelations/docs/resultscentre/annualreport/aib_afr_2014_v1.pdf.
Bank of Ireland
No taxpayer capital was provided/reserved to Bank of Ireland to address the issue of principal dwelling house mortgage arrears. Publicly available information in relation to Bank of Ireland's capital is available in the Bank of Ireland Annual Report 2014 and other market disclosures.
The Bank of Ireland 2014 Annual Report is available at the following link: https://www.bankofireland.com/fs/doc/publications/investor-relations/boi-annual-report-2014.pdf.
Permanent TSB
The Annual Report of Permanent TSB provides extensive data in relation to provisions made for loans in arrears. In particular, I would refer the Deputy to the relevant disclosures in relation to provisions for loans in arrears are made in the Asset Quality section of the Operating and Financial Review section, pages 21 to 26, of Permanent TSB's 2014 Annual Financial Report published on 11 March 2015. The Regulatory Capital section of the Operating and Financial Review, on page 30, gives details of Regulatory Capital held as a buffer for potential future losses. This report is available on the following link: http://www.permanenttsbgroup.ie/~/media/Files/I/Irish-Life-And-Permanent/Attachments/pdf/2014/2014-full-year-report.pdf.
72. Deputy Ciarán Lynch asked the Minister for Public Expenditure and Reform the progress made by the Office of Public Works regarding the Douglas flood relief scheme; if firm commencement and completion dates have been established; if the project is on target to date; if the necessary planning permission has been obtained; and if he will make a statement on the matter. [18938/15]
View answerThe Douglas Flood Relief Scheme is being progressed by Cork County Council as the Contracting Authority for the project as part of an overall scheme for Douglas and Togher, with funding being provided by the OPW. There have been two public information days held which have helped to advance the design of the Scheme, which is ongoing. A full Cost Benefit Analysis is currently being carried out, with the outline design of the preferred Scheme being finalised in the next few months. It is then expected that the Scheme will be brought though Public Exhibition/Planning in the third quarter of this year. Subject to the proposed scheme being accepted, the detailed design will be commenced and it is anticipated that this will take until the middle of 2016. Procurement of a civil works contractor will then be undertaken by Cork County Council. The Council expects construction to commence in the second half of 2016, subject to satisfactory completion of the necessary procurement and approval processes.
The OPW is fully supporting the Council in the progression of this Scheme and has made provision for the cost of implementing the scheme in its financial profiles over the years 2015-2017.
73. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform when it is anticipated that the level of rates applied to business premises in County Kerry will be re-evaluated; and if he will make a statement on the matter. [19013/15]
View answerThe Valuation Office is currently undertaking a national programme of revaluing, for rates purposes, all industrial and commercial properties in the State on a rating authority area basis. The purpose of revaluation is to bring more equity, fairness and transparency into the local authority rating system and to distribute the commercial rates liability more equitably between ratepayers. Following revaluation there generally will be a much closer and uniform relationship between rental values of property and their commercial rates liability. In essence, the exercise aims to ensure that each ratepayer bears a fair share of the rates burden relative to the value of the property that they occupy.
Section 9(10) of the Valuation Act 2001 provides that the Commissioner of Valuation is independent in the performance of his functions and decisions with regard to the selection of rating authority areas for revaluation is his sole prerogative. Section 19(1) of the said Act empowers the Commissioner, after consultation with the Minister for the Environment and Local Government and the rating authority concerned, to make a Valuation Order specifying a rating authority area over which a revaluation is to be conducted.
The revaluation programme which began with South Dublin County Council, Fingal and Dun Laoghaire-Rathdown County Council areas has been rolled out more recently to the Dublin City Council area, Waterford City and County Council area and Limerick City and County Council area. The statutory consultation process, required before a valuation order can be made, is now being conducted in relation to a further three rating authorities, Galway City Council, Kilkenny County Council and Carlow County Council. While the Commissioner is exploring a number of initiatives to accelerate the programme, he cannot at present give a date for the commencement of the revaluation of all commercial properties in County Kerry or in other rating authority areas. In the meantime, commercial properties in the county will continue to be valued on the existing valuation lists by reference to the valuation levels prevailing on those lists.
The Valuation (Amendment) Act 2015 was recently passed by the Oireachtas. The primary purpose of the Act is to accelerate the national revaluation programme and it contains a number of measures in this regard. Firstly, provision is being made to enable the Commissioner to enter into an arrangement with persons, other than his officers, to assist in the performance of the revaluation function. The effect of this provision is to allow the Commissioner to contract out some of the revaluation work, in order to augment the in-house capacity of the Valuation Office. This is one of the express provisions intended to assist the acceleration of the national revaluation programme. The Commissioner intends running a pilot revaluation project which will utilise such external resources. The Act also provides for the Commissioner to conduct a revaluation with the assistance of the occupiers of property using elements of self-assessment. This provision is also intended to assist the acceleration of the national revaluation programme and I understand that the Commissioner intends running a pilot project which will utilise certain principles of self-assessment.
74. Deputy Joanna Tuffy asked the Minister for Public Expenditure and Reform the total expenditure on consultancy by his Department; the number of consultants engaged by his Department in the years 2011 to 2014; the names of the consultancy companies awarded contracts; and the steps that have been taken to reduce the expenditure on consultancy, and the reliance on consultants by his Department in these years and for the future. [18964/15]
View answerIn response to the Deputy's question the following table outlines the total amount of expenditure on consultancy in my Department since it was established in July 2011.
|
Year |
Company |
Amount |
|
2011 |
Deloitte |
€65,915 |
|
|
Accenture |
€80,465 |
|
|
Total |
€146,380 |
|
2012 |
Davy Corporate Finance |
€285,051 |
|
|
Accenture |
€30,750 |
|
|
Deloitte |
€87,330 |
|
|
IVI |
€30,750 |
|
|
Storm Technology |
€22,697 |
|
|
IPAG (Ireland) Limited |
€3,998 |
|
|
Total |
€460,576 |
|
2013 |
Deloitte |
€282,025 |
|
|
Equita Consulting |
€14,426 |
|
|
Bearing Point |
€135,515 |
|
|
Best Practice Group |
€4,300 |
|
|
PWC |
€6,457 |
|
|
Gartner |
€106,518 |
|
|
Ernst & Young |
€84,374 |
|
|
Astec Global |
€62,226 |
|
|
Davy Corporate Finance |
€568,875 |
|
|
PWC |
€92,250 |
|
|
Harvey Nash |
€130,626 |
|
|
Peter Smyth Management Consultancy |
€116,789 |
|
|
Brightwater |
€181,814 |
|
|
Storm Technology |
€24,321 |
|
|
IPAG (Ireland) Limited |
€9,840 |
|
|
Total |
€1,820,356 |
|
2014 |
PWC |
€92,250 |
|
|
Best Practice Group |
€17,950 |
|
|
European Investment Bank |
€26,767 |
|
|
AA Ireland |
€6,150 |
|
|
Achilles Procurement Services Limited |
€89,115 |
|
|
Baker Tilly Ryan Glennon |
€28,167 |
|
|
Deloitte |
€44,881 |
|
|
Innovative Procurement Solutions |
€38,468 |
|
|
Ove Arup & Partners |
€39,169 |
|
|
Papernet |
€9,230 |
|
|
Peter Bacon & Associates |
€25,031 |
|
|
Peter Smyth Management Consultancy |
€69,003 |
|
|
RATE Information Services |
€3,960 |
|
|
Schneider Electric |
€212,401 |
|
|
System Dynamics Limited |
€33,948 |
|
|
Dr. Micaela Greenwood |
€2,500 |
|
|
Time.lex CVBA |
€37,500 |
|
|
L. Kierans BL |
€10,000 |
|
|
Davy Corporate Finance |
€570,061 |
|
|
NERA Economic Consulting |
€8,853 |
|
|
Gartner |
€174,496 |
|
|
Harvey Nash |
€239,112 |
|
|
Astec Global |
€157,477 |
|
|
Capita |
€213,052 |
|
|
Rocela Limited |
€95,940 |
|
|
Resolve |
€216,512 |
|
|
Cupertino |
€32,288 |
|
|
Total |
€2,494,281 |
My Department ensures that every effort is made to limit the use of consultants where possible. All contracts are negotiated with a view to achieving best value for money and are kept under review to ensure this is maintained. When the use of consultants is unavoidable the staff in my Department ensure appropriate skills transfer to reduce the requirement for consultants going forward.
75. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform if measures were taken at Athlone Weir in County Westmeath in advance of the recent heavy rains to reduce the potential impact of flooding on the Shannon callows; the dates and actions taken; and if he will make a statement on the matter. [19044/15]
View answerI wish to inform the Deputy that my Department has no role in relation to the management of the sluices at Athlone Weir.
I understand that this is a matter for Waterways Ireland and the ESB. Waterways Ireland is responsible for navigation on the inland waterways system. On the Shannon Navigation and the southern portion of the Shannon-Erne Waterway, Waterways Ireland works in co-operation with the ESB to manage water levels. Waterways Ireland manages the levels for navigation while ESB manages levels in relation to the production of electricity.
The ESB controls the water levels on Loughs Derg, Ree and Allen in accordance with Regulations and Guidelines for the control of the River Shannon. Measures taken at Athlone Weir to reduce the potential impact of flooding on the Shannon callows is a matter for the ESB which is responsible for the management of sluices at Athlone.
76. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the procedure to be followed by small and medium suppliers of goods and services who are anxious to quote for advertised public contracts; and if he will make a statement on the matter. [19107/15]
View answerThe reform of the procurement system across the public service is a key element of the reform programme for the public service. The fragmented procurement arrangements across the public service have enabled suppliers to charge different public service bodies different prices for the same goods and services. Public Procurement savings are necessary to enable public service organisations deliver much needed services within the tighter budgets that they must now operate.
However, I would point out that reforms in this area are being carried out in a manner that recognises the importance of SMEs. The Government acknowledges the significant role that SMEs play in the Irish economy and is committed to ensuring that SMEs are fully engaged with public sector procurement and the opportunities presenting. Circular 10/14 issued in 2014 by my Department sets out positive measures that contracting authorities are to take to promote the involvement of smaller enterprises as well as highlighting practices that are to be avoided because they can hinder small businesses in competing for public contracts. The main thrust of the circular is as follows:
- buyers are advised to undertake market analysis prior to tendering in order to better understand the range of goods and services on offer, the competitive landscape, including the specific capabilities of SMEs, etc.
- the circular promotes transparency in procurement by requiring supplies and general services contracts with an estimated value of €25,000 be advertised on the Government's electronic tendering portal, e-Tenders;
- it encourages suppliers including SMEs to fully use e-Tenders and avail of its facilities in relation to registration, e-tendering and automatic alerts in relation to future tendering opportunities;
- buyers are encouraged not to set turnover thresholds at more than twice the estimated contract value and puts limits on insurance levels for suppliers where possible;
- promotes greater use of "open" tendering and less use of "restrictive" tendering;
- it encourages SMEs to consider using consortia where they are not of sufficient scale to tender in their own right or where they may lack certain capabilities necessary to provide a compelling proposition; and,
- it encourages Contracting Authorities to break large contracts down into lots where reasonable to do so and where it does not expose the State to undue risk or significant management overheads.
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.
In addition, the Office of Government Procurement (OGP) is working 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. 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.
77. Deputy Willie Penrose asked the Minister for Jobs, Enterprise and Innovation when the Construction Contracts Act 2013 will be implemented; and if he will make a statement on the matter. [19111/15]
View answerThe Government is committed to the earliest possible implementation of the Construction Contracts Act, 2013 and, as a consequence, approved the delegation of responsibility for its implementation to my colleague the Minister of State for Business and Employment last November. I am informed that Minister Nash intends to appoint a Chairperson of the Ministerial Panel of Adjudicators, which is to be established under the Act, as soon as is practicable, having regard to procedural and contractual considerations.
The necessary work is continuing on the preparations for the full implementation of the Act, as the commencement of the Act is dependent on a number of factors set out in the legislation. These factors include the appointment of a Panel of Adjudicators by Minister Nash. The selection of the adjudicators for this Panel will be achieved through an open competitive process to be arranged by the Public Appointments Service, at the earliest opportunity. Minister Nash is also overseeing the preparation of a Code of Practice for the conduct of adjudications, which will be binding on all adjudicators operating under the Act. The drafting of the Code is at an advanced stage and will be finalised after consultations have concluded with the relevant construction industry stakeholders.
Once the preparatory arrangements have been finalised, a date for implementation of the Act will be announced in advance to provide sufficient notice to those affected by the Act's provisions.
78. Deputy Joanna Tuffy asked the Minister for Jobs, Enterprise and Innovation the total expenditure on consultancy by his Department; the number of consultants engaged by his Department in the years 2011 to 2014; the names of the consultancy companies awarded contracts; and the steps which have been taken to reduce the expenditure on consultancy, and the reliance on consultants by his Department in these years and for the future. [18957/15]
View answerIn the time available, it has not been possible for my officials to compile all of the information requested by the Deputy once the available information is collated, I will arrange for it to be forwarded to the Deputy.
79. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the number of Industrial Development Agency Ireland visits to County Kerry with potential investors to date in 2015; and if he will make a statement on the matter. [19024/15]
View answerI am informed by IDA Ireland that to date in 2015 there has been one IDA Ireland sponsored site visit by a potential investor to County Kerry.
IDA Ireland sponsored site visits by potential investors to specific locations in Ireland are only part of the long and complicated process involved in attracting foreign direct investment to this country. These site visits may take place at the beginning or end of the process and in some cases there are no site visits involved. Site visits, when they do occur, involve new companies visiting a location for the first time and senior executives of existing companies. For reasons of client confidentiality and commercial sensitivity, IDA Ireland does not comment publicly on the success rate of such site visits.
While these site visits contribute to investment approvals and the creation of jobs, there is not always a direct correlation between site visits made and jobs created in any given year. It is important also to acknowledge the natural time lag between a decision being made to invest and that investment coming on stream. The time lag can be between 3 and 5 years in some cases. That time is required for such activities as locating and acquiring a suitable site for the company’s operations, constructing a facility, installing machinery and the recruitment and training of suitable staff.
The level of investment coming on stream is best captured in the number of jobs created in any given year as recorded in the Annual Employment Survey which shows that at the end of 2014 there were 12 IDA Ireland supported companies in Kerry with total employment of 1,874. County Kerry has seen an annual increase in FDI related employment over the past three consecutive years from 1,497 in 2011 to 1,874 in 2014.
Kerry has traditionally established itself as a centre for foreign manufacturing companies but has seen a number of downsizings/closures in recent years. It has however attracted a number of services companies (e.g. JRI America, Enercon, etc.) and has a strong cluster of well-established indigenous companies.
Earlier this year IDA Ireland launched its 5 year strategy for the period 2015 to 2019 which aims to create 80,000 new jobs in the economy over the period and increase investment into each region by between 30% and 40%.
The reinstatement of Regional Aid for Kerry with effect from 1 July 2014 under the new Regional Aid Guidelines will also be beneficial to the county.
As the Deputy is aware, officials of my Department and its agencies are actively engaged with regional stakeholders in the development of individual Action Plans for each of the regions, including the South West Region, which will be published in the near future. Counties Kerry and Cork make up the South West Region.
80. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the position regarding the provision of funding for a centre manager (details supplied) in County Kerry; and if he will make a statement on the matter. [19025/15]
View answerThe Killarney Technology Innovation Centre is supported by Enterprise Ireland through the Community Enterprise Development Programme.
The Government, on 11 February 2015, announced details of a €250m Regional Enterprise Development Initiative aimed at accelerating economic recovery in every part of the country. Up to €100m of those funds will be made available through Enterprise Ireland (EI) and the LEOs over the next 5 years through a series of competitive funding initiatives in the broad areas of entrepreneurship, innovation, skills, enterprise infrastructure and job creation.
The objective of these initiatives is to bring forward fresh collaborative approaches to boost enterprise and job creation at a regional level throughout Ireland. The initiatives will be organised under three separate calls that will be rolled out over the 5 years. The first of the calls from the €100m fund is a competitive €5m Community Enterprise Initiative which will be announced shortly.
