Aengus Ó Snodaigh
Question:58. Deputy Aengus Ó Snodaigh asked the Tánaiste and Minister for Social Protection the full-year cost of increasing disability allowance by €20. [40861/15]
View answerDisability Allowance
Questions (58)
Written answers
The estimated full year cost of a €20 increase in the weekly rate of Disability Allowance is €131.2 million, which includes the cost of a proportionate increase for qualified adults where applicable.
On Budget Day, I announced a social welfare Budget package for 2016 with four key aims:
- to deliver welfare improvements for pensioners aged 66 and over;
- to strengthen supports for all families with children;
- to enhance incentives for employment and to make work pay; and
- to provide targeted assistance for vulnerable groups, such as carers and people with disabilities.
In this regard, I am pleased to be in the position to provide a 75% Christmas Bonus payment this year. A single person in receipt of Disability Allowance will receive a bonus payment of €141. Those eligible for the Fuel Allowance will gain from the increase in January of €2.50 per week, from €20 to €22.50 per week over the fuel season. In addition, the Free Travel scheme is being fully maintained, with the provision of a further €3 million in funding.
Rent Supplement Scheme Payments
Questions (59)
Bernard Durkan
Question:59. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection if an increase in rent allowance will be facilitated for a person (details supplied) in County Kildare who will be homeless unless further assistance is given, with particular reference to information supplied; and if she will make a statement on the matter. [40868/15]
View answerWritten answers
The client concerned should provide the Department with an up to date Rent Supplement application form and lease agreement confirming increase in their monthly rent. On receipt of this documentation, the client's rate of Rent Supplement entitlement can be re-assessed.
Child Maintenance Payments
Questions (60)
Marcella Corcoran Kennedy
Question:60. Deputy Marcella Corcoran Kennedy asked the Tánaiste and Minister for Social Protection her plans to introduce attachment orders on social protection recipients in cases where a parent fails to comply with a court order, and does not pay the amount awarded from the court in respect of the children; and if she will make a statement on the matter. [40873/15]
View answerWritten answers
The issue of maintenance payments is first and foremost a private matter for the person concerned, and if the matter cannot be resolved, for the courts through family law provisions.
Under family law, it is possible to apply to the court for an Attachment of Earnings Order. An Attachment of Earnings Order can be sought if the person is in employment, on a social welfare payment or on a private pension, resulting in the maintenance being deducted at the source. Under the Family Law Act 1995, it is possible to apply for this attachment at the initial maintenance hearing, if the person applying to court fears that there will be a default of maintenance.
Where a judge deems it appropriate to attach welfare payments, this Department complies with all such Family Law Maintenance Orders received by deducting the amount specified in the court order from a social welfare recipient’s payment.
Domiciliary Care Allowance Applications
Questions (61)
Michael Healy-Rae
Question:61. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection the status of an application for domiciliary care allowance by a person (details supplied) in County Kerry; and if she will make a statement on the matter. [40877/15]
View answerWritten answers
An application for domiciliary care allowance (DCA) was received from the person concerned on the 16th September 2015. This application has been forwarded to one of the Department’s Medical Assessors for their medical opinion. Following receipt of this opinion, a decision will be made by a Deciding Officer and notified to the person concerned. It can currently take 12 weeks to process an application for DCA.
Credit Union Regulation
Questions (62, 63)
Michael Healy-Rae
Question:62. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding Consultation Paper 88; and if he will make a statement on the matter. [40761/15]
View answerMichael Healy-Rae
Question:63. Deputy Michael Healy-Rae asked the Minister for Finance his views on a matter (details supplied) regarding Consultation Paper 88 and lending restrictions; and if he will make a statement on the matter. [40762/15]
View answerWritten answers
I propose to take Questions Nos. 62 and 63 together.
The Credit Union and Co-operation with Overseas Regulators Act 2012 (the "2012 Act") was signed into law by the President in December 2012.
It was agreed at that time that it would be neither practical nor feasible to commence the 2012 Act in its entirety in one fell swoop. Following on from that, an implementation timetable for the 2012 Act was devised in consultation with stakeholders, including credit union representative bodies.
Commencement of all sections of the 2012 Act has been aligned with the credit union financial year and the introduction of the underpinning Central Bank regulations, with a view to implementation of the 2012 Act in a coherent and cohesive manner. This has provided credit unions with the time necessary to ensure that the required processes and procedures are in place prior to implementation of each tranche.
I have met with the three credit union representative bodies and the perceived impact of the new regulations was discussed. It is my intention to commence the remaining sections of the 2012 Act on 31 December 2015 in line with the introduction of the regulations by the Registrar of Credit Unions. These sections of the 2012 Act, when commenced, will replace, amend or supplement existing sections of the 1997 Act.
As outlined in the Central Bank's feedback statement on CP88, as part of the consultation process I proposed that in the interests of clarity and fairness, credit unions are provided with details of the process of applying for a retention of savings above the limit amount. I have been informed by the Registry of Credit Unions that all credit unions have been contacted giving further information on its application criteria for the retention of savings in excess of €100,000. The Registry of Credit Unions intends to engage with the representative bodies and to invite comments from them prior to finalisation of the application process. When the application process is finalised, the Registry will provide an application form and explanatory notes in order to assist credit unions. It is anticipated that application forms will be available during December 2015. It is envisaged that applications will be accepted in the first quarter of 2016 and that applicant credit unions will be informed by the end of the second quarter of 2016 on the outcome of the process, which is well within the 12 month transitional period. Where a credit union has demonstrated that it meets the criteria, it will be in a position to retain members' savings in excess of €100,000 held at the commencement of the regulations.
I welcome the steps that have been taken to provide clarity for credit unions on the criteria for the retention of savings over €100,000 and also welcome the Central Bank proposed engagement with the representative bodies to seek their comments on the application process.
The Central Bank has also informed me that it is committed to undertaking a review of the continued appropriateness of the savings limit, once the impact of the restructuring process can be assessed. It is envisaged that this review will commence within three years of the introduction of the regulations. My officials have asked the Central Bank to consider accelerating this review and this is under consideration by the Central Bank. The Central Bank has agreed to provide regular updates to my Department on developments in this matter.
I have been informed by the Central Bank that it has been necessary to put lending restrictions in place in credit unions where there are regulatory concerns and resultant risk to members' savings. These lending restrictions are reviewed on a regular basis to determine whether or not they are still set at appropriate levels.
In February 2015 the Central Bank commenced a lending restriction review initiative, whereby credit unions that are subject to a lending restriction, but are satisfied that they have made the necessary improvements and have embedded these improvements in robust risk sensitive lending practices, could apply for a review of their lending restriction. The closing date for receipt of applications to review lending restrictions under this initiative was 30 September 2015.
The Central Bank further informs me that 59% of applications received have been reviewed. Of the applications which have been fully reviewed, 83% have had their lending restriction lifted and are now operating under the board's stated credit risk appetite. C.40% of credit unions that applied made their application in September. These applications are currently under review.
This review has reduced the number of credit unions with lending restrictions as currently approximately 39% of credit unions have a lending restriction compared with 52% at the start of the review process.
As indicated in the Central Bank consultation paper CP88, where credit unions can demonstrate improvements in their credit risk management practices in line with strengthened regulatory framework, it is anticipated that the use of credit union specific lending restrictions as a regulatory tool will reduce over time.
The Central Bank has further informed me that it has now contacted all credit unions inviting them to attend upcoming information seminars being held around the country from 17 to 30 November. These seminars will provide credit unions with the opportunity to engage with the Central Bank on the new regulations and to discuss development of the credit union business model, including any changes to the regulatory framework that might be required to facilitate those developments. This engagement will also enable the Central Bank gain a better understanding of the sector's objectives regarding longer term lending, including the provision of mortgages to members. and to review the conditions that currently apply for credit unions to be approved to extend their longer term lending limits.
The Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is absolutely determined to continue to support a strengthened and growing credit union movement.