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Thursday, 2 Jul 2015

Written Answers Nos. 88-100

Commercial Rates

Questions (88)

Michael Moynihan

Question:

88. Deputy Michael Moynihan asked the Minister for Public Expenditure and Reform if he will confirm whether 65% of ratepayers in County Limerick are to see a reduction in their rates at the expense of the other 35% who will see an increase; if the total rates budget will remain unchanged; if this increase will have any effect on nursing homes, crèches and wind farms; if it means there has been a change in Government policy as regards supporting these sectors; if a regulatory impact assessment has been carried out as a result; and if he will make a statement on the matter. [26833/15]

View answer

Written answers

As I indicated in my reply to Question No. 275 on 30 June, the Valuation Office is currently undertaking a systematic programme of revaluing, for rates purposes, all industrial and commercial properties in the State on a rating authority basis. The purpose of the 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 based on up-to-date rental values. Following revaluation, there will generally be a much closer and uniform relationship between the rental value of a property and the commercial rates liability which applies to that property. 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.

As part of the national revaluation programme, the Valuation Office published a new valuation list for the Limerick City and County Council rating authority area on 31 December 2014.

Section 56 of the Valuation Act, 2001, as amended, provides that the commercial rates income of a local authority is capped in the year following revaluation, limiting the reasons for any increase in total local authority income from rates to the following: Inflation; Extensions to existing properties; and New properties coming on stream. As a result, the revaluation of commercial properties in a local authority area is essentially a revenue neutral exercise concerned with the redistribution of the rates liability between ratepayers by reference to the net annual value of the commercial property they occupy.

As a result of Section 56 of the Valuation Act, 2001, as amended, and the shift in relative values of various property types and uses between the late 1980's and the valuation date of 1 March 2012, some 65% of ratepayers in the Limerick City and County Council rating authority area have had a reduction in their rates liability while 35% have had an increase. This is more or less in line with the outcome in other recently revalued rating authority areas.

The trend of change in liability occurred across a range of property uses and is not confined to the categories of property to which the Deputy refers. The question of the Commissioner adopting a different approach to the valuation of certain categories of property which receive public support does not arise as all valuations determined by the Valuation Office in all sectors are carried out solely in accordance with the valuation principles prescribed by section 48 of the Valuation Act 2001. Government policy in relation to support of the areas mentioned does not play any part in the determination of values under the Act.

Revaluation is not a new policy and is being carried out under legislation enacted in 2001. The Commissioner of Valuation is independent in the exercise of his function under the Valuation Acts, 2001 to 2015 and the carrying out of valuations for rating purposes is his sole prerogative. The Act does not accord me as Minister any function in this regard. I would not be aware of the values emerging for different sectors before the final valuation list is published and the legislation provides for an extensive appeals process. The carrying out of a Regulatory Impact Assessment does not therefore arise.

Ministerial Meetings

Questions (89)

Micheál Martin

Question:

89. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he will provide, in tabular form, the number of requests for meetings he has received from private, external, non-State-funded lobby groups; the number of meetings he has held with these groups; and if he will make a statement on the matter. [26705/15]

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Written answers

As the Deputy will appreciate, in view of the range of my remit as Minister I receive representations, including requests for meetings from a broad range of sources, including members of the Oireachtas, local and voluntary groups and private individuals and companies.

While my Office does not maintain a register of all such requests for meetings or invitations received, I can advise the Deputy that during 2014 I have attended some 150 meetings with a variety of individuals and groups, including some 18 meetings or so with representatives of those bodies under the aegis of my Department and other public representatives.  These figures would not include informal unscheduled meetings that might arise from time to time.

The Deputy will be aware that the Regulation of Lobbying Act 2015 has recently been enacted by the Oireachtas and will commence on 1 September 2015.  The Act provides that the Standards in Public Office Commission (the Standards Commission) will establish and maintain an online register of lobbying and oversee compliance with the legislative provisions.  The purpose of the register will be to make information available to the public on the identity of those communicating with designated public officials.  Persons lobbying will have to register with the Standards Commission and will be required to submit returns on their lobbying activities.

Commercial Rates Calculations

Questions (90)

Brian Walsh

Question:

90. Deputy Brian Walsh asked the Minister for Public Expenditure and Reform further to recent representations from the Vintners Federation of Ireland, if he will consider the introduction of a rates system based on trading data; and if he will make a statement on the matter. [26729/15]

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Written answers

The levying of rates on commercial property by reference to turnover or profit rather than net annual value/rental value would be a significant change and a departure from the long-standing practice of levying rates by reference to property values.  There are already taxes in place which are levied on business turnover/profit, i.e. VAT and income/corporation taxes.

The basis of rateable valuation for all rateable property is Net Annual Value as set out in Section 48 of the Valuation Acts, 2001-2015. Net Annual Value is the rent for which one year with another, the building might, in its actual state, be reasonably expected to let from year to year, on the assumption that the probable average annual cost of repairs, insurance and other expenses (if any) that would be necessary to maintain the property in that state, and all rates and other taxes in respect of the property, are borne by the tenant of the property.

In accordance with well-established valuation principles and case law, various methodologies may be used in estimating the net annual value (NAV/rental value) of a building. The most common methodology used is the comparative method, which as the name implies, makes direct comparisons with other similar buildings in the same rating area.

In the absence of direct comparative evidence of value a method of valuation known as the Receipts and Expenditure method of valuation, where trading accounts are analysed to arrive at the Net Annual Value of the property, may be used. This method of valuation or a variation on this method is frequently used in the valuation of licensed property for rating purposes. In practice therefore trading data is used by the Valuation Office in deriving the value of a property.

Departmental Funding

Questions (91)

Thomas P. Broughan

Question:

91. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the funding provided to benefacts.ie given that this service is already being provided by the underfunded charitiesregulatoryauthority.ie, the website of the Charities Regulatory Authority; the reason the decision was made to provide €1.95 million for benefacts.ie in lieu of supporting charitiesregulatoryauthority.ie; if this decision results in a duplication of services; and if he will make a statement on the matter. [26753/15]

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Written answers

There are more than 12,000 not-for-profit organisations in Ireland, providing employment for more than 100,000 people and with an estimated annual turnover of €6bn annually.

The not-for-profit sector receives more than €4.4bn in annual public funding, yet there is no online source where the public can get an understanding of how the sector is composed and what social needs are being met by this exchequer funding. Benefacts is a new entity which will pilot a model that will, for the first time, provide an extensive body of public information that will make the work of an entire sector more transparent. This will provide a unique source of information on all Irish civil society entities, including charities as well as thousands of entities such as social enterprises, sports bodies, professional bodies and others.

Benefacts, by collating all funding into a single repository, will also provide a key piece of data infrastructure that will ensure that taxpayers' monies are being spent in the most effective manner. This initiative will assist Government and the not-for-profit sector in designing and delivering better services that support the delivery of the best possible outcomes for all citizens.

There is no duplication of functions or services between the work of Benefacts and the Charities Regulatory Authority. The Charities Regulatory Authority has specific regulatory functions while Benefacts has no function in this area.  The Charities Regulator has noted that the charities register is not intended to be a comprehensive database of all information about a charity.  However, there are potential complementarities and I understand that both organisations are exploring how they can cooperate to best effect including the provision of information required by Benefacts from a variety of licensed regulatory sources such as the Charities Regulatory Authority and the Companies Registration Office.

In Budget 2015, additional funding of €500,000 was allocated toward the Charities Regulatory Authority bringing the total budget for the Authority to €1.4m in 2015. This represents an increase of over 50% on the initial budget provided for the establishment phase.

Benefacts, which is co-funded by government and two philanthropic organisations, Atlantic and the Ireland Funds, will receive €1.95m over three years for its own pilot database and web-service project.  It will be operational in early 2016 and will provide readily accessible information and high value datasets that are interoperable and re-usable by the public.

This initiative will also advance a number of the objectives of the public reform agenda by trialing and delivering new ways of working, reducing administrative duplication, delivering open data and providing greater transparency about the use of the public expenditure by all not-for-profit organisations.

Public Procurement Contracts

Questions (92)

Michael McGrath

Question:

92. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the reason a company (details supplied) has terminated its contract, effective from 3 September 2015, with the Office of Government Procurement for OGP Group 4, awarded under the supply of stationery and office supplies, as set out in the request for tenders to establish a multi-supplier framework agreement dated 9 August 2013; if he will advise on the financial implications of this contract cancellation; and if he will make a statement on the matter. [26779/15]

View answer

Written answers

The Office of Government Procurement has confirmed that the company (details supplied) has given notice to terminate the contract within the terms of the contract for the supply of stationery and office supplies to the OGP Group 4 "Sector" (i.e. Central Government, Local Authorities and Schools).  The termination date is 3 September 2015.

The decision to terminate the contract early was taken by the company and is allowed for under the contract.  In informing the OGP of its decision, the company cited a range of factors including the low average value of orders placed under the contract, the high frequency of multiple low value orders, and low take-up of the contract in certain sections of the Sector.

During the period to 3 September, OGP Group 4 Sector customers can continue to use the contract for their stationery and office supplies needs. The current OGP catalogue is still valid and the company will maintain service as normal until that date.  To ensure that public sector bodies experience no gap in service, the OGP will shortly be commencing a mini-competition to put in place a new arrangement for OGP Group 4 customers, which will run from 4 September onwards.

Regarding the financial implications of this contract cancellation, this will be known when the mini-competition has been run, estimated to be by end of July, and a new contract awarded following the receipt of prices submitted by the other members of the framework.  Framework members cannot propose pricing that is in excess of what they proposed in their framework response so the cost exposure is capped.

Departmental Staff Training

Questions (93)

Michael McGrath

Question:

93. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will provide, in tabular form, a breakdown of all third level courses and training programmes provided for employees of his Department and the accompanying cost for the 2014-2015 academic year from 1 September 2014 to the end of June 2015; and if he will make a statement on the matter. [26797/15]

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Written answers

My Department's post-entry education scheme supports staff with their work and career aspirations and encourages a continuous organisational learning culture while developing and strengthening professional expertise and capacity. In the context of the ongoing need to update and develop new skills, the scheme recognises that supporting staff professional development is a worthwhile investment, focusing on the development and honing of knowledge and expertise as well as critical thinking, research, questioning, analytical and evaluation skills.

The information requested by the Deputy is set out in the following table.

Programme Course details 

College/Institute

Cost per academic year/per staff member

Number of participants

Post Graduate Diploma in Public Administration  

Institute of Public Administration

€1,700

1

Diploma in Economics

International College Dublin

€895

1

M.Sc in Economic Policy Studies

Trinity College Dublin

€9,700

1

M.Sc in Economic Policy Studies

Trinity College Dublin

€9,700

1

Linear Statistical Modelling

Open University

€1,087

1

M.Sc Applied Mathematics and Physics

Dublin Institute of Technology 

€1,800

1

Diploma in Accounting and Business - ACCA

Athlone Institute of Technology 

€1,250

1

ACCA Professional Accountancy  

Griffith College Dublin

€1,700

1

Diploma in Information Systems 

Trinity College Dublin

€3,514

1

Post Graduate Diploma in Policy Analysis 

Institute of Public Administration

€7,900

1

M.Sc in Management Programme

National College of Ireland

€3,950

1

Diploma in HR Management

IBEC

€2,500

1

Bachelor of Business Studies

Institute of Public Administration

€1,490

1

Diploma in Project Management

Institute of Public Administration

€2,500

1

M.Sc in Psychotherapy 

Dublin Business School

€3,495

1

Advanced Diploma in Project Management

Dublin Business School

€1,990

1

M.Sc in Work and Organisational Behaviour 

Dublin City University

€7,950

1

Barrister at Law Degree

King's Inns

€6,280

1

Certificate in Public Procurement

Institute of Public Administration

€4,500

1

Diploma in Public Procurement 

Institute of Public Administration

€4,500

1

Masters in Human Resource Management 

Robert Gordon University

€3,836.61

1

Masters in Human Resource Management 

Robert Gordon University

€3,547.49

1

Bachelor of Law

Dublin Business School

€5,100

1

Certificate in Project Management

Institute of Public Administration

€1,700

1

Bachelor of Law

Dublin Institute of Technology

€2,155

1

BA in Human Resource Management

Institute of Public Administration

€2,820

1

CIPD Diploma in Human Resource Practice

Institute of Public Administration

€800

1

CIPD Diploma in Human Resource Practice

Institute of Public Administration

€800

1

Diploma in Human Resource Management

Institute of Public Administration

€2,750

1

Specialist Diploma in Quality Management Six Sigma

University of Limerick

€4,700

1

Diploma in Computer Studies

Institute of Public Administration

€1,950

1

CIPD Diploma in Human Resource Practice

Institute of Public Administration

€2,300

1

Bachelor of Business Studies

University College Dublin

€3,100

1

BA in Occupational Psychology

Dublin Business School

€4,050

1

Diploma in Human Resources

Institute of Public Administration

€800

1

BA in Human Resource Management

National College of Ireland

€3,800

1

Advanced Diploma in Legislative Drafting

King's Inns

€4,500

1

Certificate in Professional Irish

Gaelchultúr

€750

1

M.Sc in Human Resource Strategies

Dublin City University

€6,500

1

Diploma in Suicidology

Fingal Counselling

€500

1

CIPD Diploma in HR

National College of Ireland

€2,900

1

Jurisprudence

King's Inns

€1,000

1

Diploma in Economics

International Career Institute

€895

1

Certificate in Learning and Development Practice

Institute of Public Administration

€2,430

1

Flood Relief Schemes Status

Questions (94)

Noel Grealish

Question:

94. Deputy Noel Grealish asked the Minister for Public Expenditure and Reform the timeframe for when funding will be assigned and flood alleviation measures carried out in Claregalway, Montiagh and Carnmore, County Galway; if he will provide a breakdown of the way the €15 million allocated for these areas will be spent; and if he will make a statement on the matter. [26806/15]

View answer

Written answers

As indicated in my replies to previous questions on this subject, the Office of Public Works (OPW) has submitted the proposals for the Clare River (Claregalway) flood relief scheme for statutory approval by the Minister for Public Expenditure and Reform, as required by the Arterial Drainage Acts. The scheme includes flood alleviation measures in the areas referred to by the Deputy.

A report commissioned by the Department of Public Expenditure and Reform (DPER) on a required independent evaluation of the Environmental Impact Statement prepared for the Scheme by the OPW is under consideration by that Department. As the Deputy is aware, before the proposed scheme can be confirmed, the Minister for Public Expenditure and Reform (MPER) must be satisfied that the Environmental and Natura Impact Statements adequately identify, describe and assess the direct and indirect effects of the proposed scheme. This is a complex area and officials are working with relevant experts to progress the matter with a view to commencing construction works at the earliest opportunity.

Pending completion of DPER's assessment and approval of the Scheme by the Minister for Public Expenditure and Reform, it is not possible to say when construction works will commence.

I wish to re-affirm that the OPW remains committed to carrying out the scheme, subject to the Minister's sanction, and has provided for its cost in its multi-annual capital expenditure profiles to 2017.

In relation to the estimated cost of the proposed works, as indicated in my reply to the Deputy on the 24th of March this year, the total estimated budget for the Claregalway Scheme inclusive of construction works, provision for professional fees, environmental mitigation measures and maintenance is in the region of €7.1 million, which includes the advance works already completed at Claregalway and Crusheeny Bridge at a cost of approximately €2.5 million. The proposed scheme works comprise of the following main elements:

- localised road raising at Miontach North and Miontach South;

- construction of a New Flood Eye at Claregalway Bridge (already completed), with regrading of the existing channel upstream through and downstream of the existing Claregalway Bridge;

- selective Accelerated Channel Maintenance from Lough Corrib to Cregmore Bridge (already completed);

- increase the capacity of culverts at various locations on the Kiniska and Islandmore tributaries in conjunction with channel maintenance;

- construction of a New Bridge at Crusheeny (already completed);

- construction of pipeline/open channel combination from (a) Carnmore & Cashla areas to Islandmore channel and (b) from Lakeview area to the Clare River upstream of Claregalway Bridge;

- channel widening from 1.3km upstream of Crusheeny Bridge to immediately downstream of Crusheeny Bridge to form a two-stage channel;

- construction of two embankments, one locally at the Old Nine Arch Bridge to include filling of the gap in wall at Mhainistir Estate and the other from 1.3 km upstream of Crusheeny Bridge to the Islandmore drain with the installation of a non-return valve on the outfall of the Islandmore drain.

Infrastructure and Capital Investment Programme

Questions (95, 101)

Bernard Durkan

Question:

95. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he sees the possibility of prudently selected public capital works such as hospitals, schools and road projects being advanced as a means of achieving further economic expansion while keeping within prudent guidelines; and if he will make a statement on the matter. [26823/15]

View answer

Bernard Durkan

Question:

101. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which his Department has examined the prospect of the use of Government development bonds as a means of funding vital infrastructure; and if he will make a statement on the matter. [26880/15]

View answer

Written answers

I propose to take Questions Nos. 95 and 101 together.

As the Deputy will be aware, my Department has undertaken a review of the public capital programme. The review sought to assess all areas of public capital investment and to refresh the existing investment strategy and multi-annual envelopes to ensure that critical infrastructure deficits are identified and addressed. We also need to ensure that our economic development prospects are enhanced by focussing our limited resources on the areas that can best support continued, sustainable and equitable growth.

Informed by the review, new three year capital expenditure ceilings were published on Budget Day.  These ceilings included significant levels of investment to support Social Housing, Transport, Education, Health and the Enterprise Sector. The results of the capital review will be set out in the Medium Term Capital Investment Framework Report that will be published shortly and will outline the capital envelope for the period to 2020.

The capital envelope in the Report will seek to prioritise addressing infrastructure deficits and capacity constraints that could hamper economic growth and will provide further details in relation to certain programme spending identified as key to supporting and underpinning economic recovery and providing social infrastructure. 

As regards Government development bonds, the Deputy will be aware that the National Treasury Management Agency (NTMA) issues Irish Government bonds which attract investment from institutions and individuals.  Monies raised through Government borrowing are paid into the Central Fund and used to fund Government spending as approved by the Oireachtas. It has not traditionally been the custom to seek to link Exchequer borrowing to specific projects, as this limits the flexibility of the Government in managing the State's finances. 

That said, the PPP programme allows for private sector investment and risk sharing in the provision of specific public infrastructure projects.  Because of their funding and risk profile, the upfront costs of these projects are not included in the calculations of General Government spending and so this approach has allowed the Government to supplement its traditional Exchequer capital programme.

Public Expenditure Policy

Questions (96, 97, 98, 99, 100, 102, 103, 105)

Bernard Durkan

Question:

96. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he has evaluated the value of savings and reform in the context of a contribution to national recovery over the past four and a half years; and if he will make a statement on the matter. [26824/15]

View answer

Bernard Durkan

Question:

97. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the current situation in Greece is likely to impact on his Department's programme for public expenditure and reform; and if he will make a statement on the matter. [26876/15]

View answer

Bernard Durkan

Question:

98. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he has identified external issues which may impact on his Department's targets in respect of public expenditure and reform; and if he will make a statement on the matter. [26877/15]

View answer

Bernard Durkan

Question:

99. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which the targets previously set by his Department in respect of public expenditure and reform, relative to each Department and the relevant subordinate bodies and agencies, remain on course. [26878/15]

View answer

Bernard Durkan

Question:

100. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that savings continue to be made throughout each Department in line with good practice and prudent management; and if he will make a statement on the matter. [26879/15]

View answer

Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the current economic situation and achievements to date in terms of curtailment of public expenditure, savings and reform can now facilitate a strategic programme to enhance economic development prospects; and if he will make a statement on the matter. [26881/15]

View answer

Bernard Durkan

Question:

103. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform his views regarding which Departments are likely to experience difficulties in keeping their current expenditure within targets; and if he will make a statement on the matter. [26882/15]

View answer

Bernard Durkan

Question:

105. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he sees prudent economic development and expansion as a means of alleviating the impact of previous curtailments in public expenditure; and if he will make a statement on the matter. [26884/15]

View answer

Written answers

I propose to take Questions Nos. 96 to 100, inclusive, 102, 103 and 105 together.

Evaluations are carried out by my Department in respect to the value of savings and reform as part of an ongoing process.  There has been a wide range of reports and guidelines published, which are available on my Department's website, along with links to other related websites.  

In addition the Irish Government Economic and Evaluation Service (IGEES) is an integrated cross-Government service which enhances the role of economics and value for money analysis in public policy making.  IGESS staff operate in designated economic evaluation units and are engaged with almost all Government Departments.  

As the Deputy will be aware, managing the delivery of public services within agreed budgetary allocations is a key responsibility of each Minister and Department to ensure that Vote-level allocations are adhered to while at the same time ensuring that they continue to provide essential services and respond appropriately to increasing demands.  My Department continually monitors voted expenditure throughout the year to compare drawdown of funds from the Exchequer against published expenditure profiles. There is regular communication with all Departments and Offices to ensure that expenditure is being managed within agreed allocations. I report a monthly analysis of spending trends to Government, and we publish information each month as part of the Exchequer Statement.  The position at the end of May showed a gross total expenditure underspend against profile.  The end-June position will be published later today as part of the Exchequer Statement.  Expenditure will continue to be monitored closely for the remainder of the year so as to ensure that our fiscal targets are met.  

The Deputy will note that in 2014, the economy expanded by 4.8% to become the fastest growing economy in Europe, with domestic demand and personal consumption now contributing to economic growth. In relation to external issues impacting on the economy and in particular the situation in Greece, this is primarily a matter for my colleague the Minister for Finance, Mr Michael Noonan.  However, I understand that  financial market developments in the euro area (outside of Greece) have been relatively calm in recent days, suggesting that firewalls created and governance changes made during the crisis are operating effectively.  This is a situation which will continue to be closely monitored.

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