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Thursday, 9 Jul 2015

Written Answers Nos. 122-131

NAMA Receivers

Questions (122)

Michael McGrath

Question:

122. Deputy Michael McGrath asked the Minister for Finance the range of fees agreed with the National Asset Management Agency appointed receivers; and if he will make a statement on the matter. [28165/15]

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Written answers

I have been advised by the National Asset Management Agency that fees agreed with appointed receivers have ranged from €625 to €1.299 m.

NAMA Expenditure

Questions (123)

Michael McGrath

Question:

123. Deputy Michael McGrath asked the Minister for Finance if he will provide, in tabular form, the top ten highest payments received by the named receivers appointed by the National Asset Management Agency since the agency was established; the companies that the receivers were appointed to; and if he will make a statement on the matter. [28166/15]

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Written answers

I have been provided by the National Asset Management Agency in the following table details of the top ten highest  cumulative fees agreed with receiver firms in respect of receivership appointments made since the agency was established:

Firm

Agreed Fees €

Number of Appointments

 Grant Thornton

10,119,962

35

 KPMG

8,126,885

37

 Duff & Phelps*

6,356,097

25

 Mazars

5,943,098

22

 PwC

5,653,726

14

 Deliotte**

4,919,743

24

 Baker Tilly UK

4,906,304

5

 Ernst & Young

4,078,059

14

 BDO

2,795,793

20

 Baker Tilly Ryan Glennon

2,657,338

14

Duff & Phelps* - formerly RSM Farrell Grant Sparks

Deloitte** - Includes Kavanagh Fennell

It is not possible to answer the Deputy's question in relation to the companies that the receivers were appointed to as there are many instances where only part of the connection is enforced and releasing such information could suggest that the entire connection is enforced whilst also having the effect of breaching sections 99 and 202 of the NAMA Act.

Lease Agreements

Questions (124)

Thomas P. Broughan

Question:

124. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the status of the lease reportedly held by the Government on the Department of Justice and Equality building at 74 to 76 St. Stephen's Green; if this reported 75 year upward only rent review lease on this Department's building was sanctioned by a former Minister (details supplied) and the Lemass Government in 1963; the annual rent for this building; the total rent paid on it by the Exchequer since it was leased; and if he will make a statement on the matter. [28071/15]

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Written answers

This property was originally taken under lease by the Commissioners of Public Works in 1967 for a term of 75 years. The building was disposed of in 2004 and the Commissioners of Public Works no longer have an interest in the property.

Lease Agreements

Questions (125)

Thomas P. Broughan

Question:

125. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if the Agriculture House building on Kildare Street, Dublin 2, is held by the Government on a 150 year upward only rent review lease down to 2123; if this lease was sanctioned by the Lynch Government in the early 1970s; the annual rent on this building; the total amount of rent paid by the Exchequer on the building since 1973; and if he will make a statement on the matter. [28073/15]

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Written answers

Agriculture House is not held on a leasehold basis. It is a State-owned building and was purchased by the Commissioners of Public Works in 1986. There are no rental payments in respect of the property since that date.

Pension Provisions

Questions (126)

Michael McGrath

Question:

126. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the impact of the Lansdowne Road agreement on the yield from the public service pension reduction in 2016 and 2017; the number of persons currently subject to a deduction as a result of the reduction; the average reduction in 2013 and 2014; and if he will make a statement on the matter. [28195/15]

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Written answers

In welcoming the proposals developed between public service employers and the representative associations and unions for an extension to the Haddington Road Agreement out to September 2018, I indicated that I intended to bring forward separate proposals to Government to provide also for a reduction in the impact of the Public Service Pension Reduction (PSPR) as it applies to the pensions of retired public servants.

In line with my stated commitments I secured Government approval on the 16 June last to move towards reducing the burden of public service pension reductions.  In overall terms the proposals agreed in relation to PSPR will remove entirely the lower paid PSPR-affected pensioners (in general those with pre-PSPR pensions of up to €34,132) from the impact of the measure. For those PSPR-affected pensioners not completely removed from the PSPR "net", the changes, when fully implemented in 2018, will in most cases deliver a reduction in the PSPR of €1,680, comprised of €400, €500 and €780 on 1 January 2016, 1 January 2017 and 1 January 2018 respectively.

The proposals are designed to favour those on lower public service pensions to the greatest extent possible consistent with the requirement to amend the Financial Emergency Measures in the Public Interest legislation on which the PSPR is statutorily based.

The planned measures will reduce the PSPR yield by an estimated €30 million per year in 2016 and by a further reduction of a similar amount in 2017. Some 90,000 public service pensions are currently impacted by PSPR.

The estimated average impact of the PSPR per affected pensioner in 2013 was in the region of €1,470, and for 2014 the average impact of PSPR was in the region of €1,600, reflecting the application over that entire year of higher reductions imposed on pensions over €32,500.

Pension Provisions

Questions (127)

Martin Heydon

Question:

127. Deputy Martin Heydon asked the Minister for Public Expenditure and Reform if his Department will consider the funding of a pension scheme or an ex gratia lump sum on retirement to community employment supervisors and assistant supervisors given the Labour Court recommendation, LCR 19293. [28196/15]

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Written answers

The Department of Social Protection currently allocates a significant level of Exchequer funding (€373.3m in 2015) to private companies in the community sector who are contracted to deliver the CE Scheme programme, this includes the subsidies which are currently provided towards the pay of CE Supervisors. However it is important to remember that the Department of Social Protection is not the employer of CE Supervisors and CE Supervisors are not public servants. 

In the current public expenditure context, the State cannot sustain additional funding requirements arising out of the provision of such a pension or ex gratia scheme for non-public servants. In addition any concession in this regard would have a significant negative impact on the number of places available to participants on what is an important employment ìntegration programme.  

Regard must also be had to how a precedent for CE Supervisors could impact on pay and remuneration costs for all personnel involved in similar schemes, particularly in the context of potential claims from other grades in community organisations whose pay cost are also largely State funded.  The consequences of any precedent being set in this regard are potentially very large and would not be sustainable for the Exchequer .  

Private companies contracted by the State to provide a service, including in the community sector, will have to manage their expenditure pressures, including labour and pension costs, from within existing funding levels.

Lease Agreements

Questions (128)

Thomas P. Broughan

Question:

128. Deputy Thomas P. Broughan asked the Minister for Jobs, Enterprise and Innovation if he will indicate any current Government leasehold interest in Carrisbrook House in Ballsbridge in Dublin 4; if the reported 65 year upward only rent review lease on this property was sanctioned by the then Minister for Finance (details supplied) and by the Lynch Government in 1968; the annual rent on this building; the total amount of rent paid by the Exchequer on the building since 1968; and if he will make a statement on the matter. [28072/15]

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Written answers

IDA Ireland currently holds the Head Lease interest in Carrisbrook House, Ballsbridge, Dublin 4.

Carrisbrook House was acquired by AnCO in 1969 on a 65 year full-repairing lease, commencing on 1st August 1969 and expiring on 31st July 2034. There is no provision for lease breaks on the property and the rent is due for review every seven years.

The Industrial Development Authority acquired the lease from AnCo on 20th October 1976.

The Industrial Development Authority occupied Carrisbrook House from 1976 until 1985, when the agency relocated to Wilton Park House. I understand that the Youth Employment Agency occupied three floors of Carrisbrook House between 1986 and 1989.

On 1st January 1994, the leasehold interest transferred to Forfás. This was transferred back to IDA Ireland from Forfas in September 2013 as part of the transfer of leasehold interest following the dissolution of Forfás at that time.

Since 1985, the available offices were sub-let to a number of tenants outside the public sector on a continuous basis until early 2008 when a major tenant exercised a break clause in its sublease and vacated the building. The Israeli Embassy is currently the only occupant of the premises, on a sub-lease which expires in 2025.

The annual rent on this building is €1,180,000. Income and expenditure details prior to 1994 are not available. However, the building was largely fully let until 2008. The total cost to the State from 1994 to date in 2015 is €8.9 million.

Since 2008 Forfás and more recently IDA Ireland has been actively seeking to market the vacant space in Carrisbrook House. Despite a number of engagements with potential tenants, a letting has not yet been secured.

The information requested by the Deputy regarding the possible sanction by the then Minister for Finance and by the Government in 1968 to sign a lease on Carrisbrook House in 1969 is not readily available due to the passage of time.

Job Losses

Questions (129)

Terence Flanagan

Question:

129. Deputy Terence Flanagan asked the Minister for Jobs, Enterprise and Innovation his views on a matter (details supplied) regarding a loss of jobs; and if he will make a statement on the matter. [28045/15]

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Written answers

What has happened in Clerys is very shocking and those who were directly employed by Clery’s and the concession holders and their staff have been treated appallingly. Earlier this week I submitted a report to the Taoiseach and Tánaiste to further inform Government on the issues surrounding the sale and liquidation of Clerys. I also briefed my Government colleagues on the report on Tuesday 7th July. A copy of the report, together with appendices including documents submitted to the High Court hearing on 12th June and correspondence I have had with Natrium Limited, is available on my Department’s website.

The report sets out the sequence of events leading up to the closure on 12th June, based on the information available; events since the 12th June including the engagement that has taken place with Clerys workers and their trade unions, with the provisional Liquidator and with representatives of the 50 concession holders; the efforts being made by the Department of Social Protection, NERA and the Liquidators’ staff to assist the workers in accessing their statutory entitlements.

The report also sets out the relevant employment law and company law framework and identifies a number of issues for Government to consider in what is an evolving situation, key aspects of which are currently under the jurisdiction of the High Court.

The report indicates the areas of employment law that will be further considered. It also identifies the company law provisions that were designed to ensure just and equitable treatment of creditors in a liquidation, including provisions to ensure that all assets that should be available to the liquidator can be accessed for the purpose of discharging a company’s debts.

The Liquidators have their job to do and in this respect, I understand that, at the hearing on 6 July, the High Court was informed that the Liquidators have identified a number of matters which they intend to investigate as part of the liquidation process.

Separately, the Tánaiste has indicated that, given that payment of workers’ claims for statutory redundancy and other statutory entitlements is falling to be met by the State from the Social Insurance Fund, she intends to use every legal avenue to vindicate the State and taxpayers’ rights in this regard.

Work Permits Eligibility

Questions (130)

Bernard Durkan

Question:

130. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if a person (details supplied) in Dublin 6 who previously had spousal entitlement on foot of their spouse's work permit and stamp 4, who is now unable to access employment under the reactivation employment permit scheme, who is now the family earner due to the spouse's disability and who is anxious to obtain employment, will be facilitated in such circumstances; and if he will make a statement on the matter. [28117/15]

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Written answers

I understand that the person named by the Deputy previously held three spousal dependent permits that were current between 15 April 2008 and 21 July 2010 and is seeking a Reactivation Employment Permit. The Reactivation Employment Permits Scheme is designed for situations where a foreign national entered the State on a valid employment permit but has fallen out of the system through no fault of their own or who has been badly treated or exploited in the workplace, to work legally again. Certain criteria apply in the consideration of a Reactivation Employment Permit and specific information in this regard is available at the following link- www.djei.ie/labour/workpermits/reactivationep.htm

As a first step, those seeking to apply for a Reactivation Employment Permit must apply to the Irish Naturalisation and Immigration Service and make an application for permission to be in the State for the purpose of making an application under this employment permit scheme. In this regard I understand that the Irish Naturalisation and Immigration Service wrote to the person named on 19th March 2015 granting them permission to stay in this jurisdiction for a four month period during which they may apply to my Department for a Reactivation Employment Permit, using the specified application form. To date my Department has not received any such application in respect of this person.

National Minimum Wage

Questions (131, 133)

Paul Murphy

Question:

131. Deputy Paul Murphy asked the Minister for Jobs, Enterprise and Innovation his views on increasing the minimum wage to bring it at least in line with the living wage of €11.50; and if he will make a statement on the matter. [28144/15]

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Ruth Coppinger

Question:

133. Deputy Ruth Coppinger asked the Minister for Jobs, Enterprise and Innovation given the study by the living wage technical group identifying €11.50 to be a living wage, the steps he will take to increase the minimum wage from the current rate which is below this level; and if he will make a statement on the matter. [28159/15]

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Written answers

I propose to take Questions Nos. 131 and 133 together.

The Living Wage concept is grounded in the idea that a person’s wage should be sufficient to maintain a safe, decent standard of living. At an individual level the resources required to achieve a minimum essential standard of living is very dependent on family circumstances and thus the interaction of individual earnings with household income and supports such as Child Benefit, Family Income Supplement and housing, education and health supports all contribute to an individual's standard of living. In the UK, it is a voluntary code that some employers, who pay in excess of the UK national minimum wage, are keen to be associated with. The Living Wage concept draws its strength from the fact that it is a grassroots civil society campaign. It has been successful in the UK, with around 1,500 separate employers across the country having endorsed the approach.

In this context, I intend to hold a Living Wage forum in the Autumn, the first of its kind, to which civil society organisations, trade unions and, crucially, employers will be invited to discuss the concept of a Living Wage in Ireland and how it can be applied here.

I fully support the concept of a Living Wage. However, I would differentiate the application of a mandatory National Minimum Wage and a societal movement that would see employers volunteer and be proud to pay what might be considered to be a Living Wage.

The National Minimum Wage (Low Pay Commission) Bill 2015 is expected to be enacted shortly. The Bill provides for the establishment of the Low Pay Commission whose main function will be, on an annual basis, to examine and make recommendations on the national minimum wage, with a view to securing that the national minimum wage, where adjusted, is adjusted incrementally over time having had regard to changes in earnings, productivity, overall competitiveness and the likely impact any adjustment will have on employment and unemployment levels. The Commission was established on an interim basis in February 2015 and I expect to receive its first recommendation on the minimum wage following the enactment of the legislation.

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