Written Answers Nos. 68 - 78
68. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the status of public sector employees who are members of trade unions which have not signed up to the Lansdowne Road agreement receiving pay increments; and if he will make a statement on the matter. [8990/16]
View answerI refer the Deputy to my reply to Parliamentary Question Reference No. 8080/16 on 26 April, 2016.
69. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the status of coastal erosion at a location (details supplied); and if he will make a statement on the matter. [9015/16]
View answerIt is a matter in the first instance for Kerry County Council (KCC) to identify, investigate and address priority areas of its coastline considered to be under significant threat from erosion. It is open to KCC to undertake coastal erosion remedial works using its own resources. If necessary, it may also put forward proposals to the relevant central Government Departments for funding of appropriate measures depending on the infrastructure or assets under threat. The Office of Public Works (OPW) operates a Minor Flood Mitigation Works and Coastal Protection Scheme, under which applications from local authorities are considered for measures costing not more than €500,000 in each instance. Funding for coastal erosion risk management studies may also be applied for under this scheme. Funding of up to 90% of the cost is available for projects which meet the eligibility criteria including a requirement that the proposed measures are cost beneficial. Full details are available on the OPW's website at: http://www.opw.ie/en/floodriskmanagement/operations/minorfloodworkscoastalprotectionscheme/.
No application from KCC has to date, been received, for the location specified.
70. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding flood damage; and if he will make a statement on the matter. [9063/16]
View answerI refer to my reply to the previous question on this same matter answered on 14 April 2016. Dublin City Council (DCC) was the Contracting Authority for the works carried out in the Clanmoyle Estate with funding provided by the Office of Public Works (OPW).
It is for DCC as the Contracting Authority in the first instance to consider this matter and the Council has informed the OPW that it is liaising with the residents concerned in this regard. Residents can contact Mr. Alan O'Regan at alan.oregan@dublincity.ie in relation to any queries/concerns they have concerning property damage.
71. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the Departments that are facing spending pressures over the next five years; the monetary value of these pressures; and how they will impact on the fiscal space, in tabular form, given the 2016 stability programme which states that while his Department will do everything possible to maintain expenditure within existing allocations, it is likely that over the course of the year, voted spending pressures amounting to circa 0.25% of gross domestic product could materialise. [9088/16]
View answerAs outlined in the 2016 Stability Programme Update (SPU) it is currently estimated on the technical no policy change basis on which the SPU was prepared that over the course of the year, voted spending pressures amounting to c. ¼ per cent of GDP could materialise while, at the same time, there is potential upside to the revenue projections. As stated in the SPU It is envisaged that this level of spending pressure in 2016 can be accommodated within the fiscal rules.
At this stage of the year, the amounts of spending pressures by Department cannot be accurately assessed. However, the end-March Exchequer Returns provide some indications of areas where there may be some pressures. As outlined in the analysis of Gross Voted Expenditure published with the Exchequer Returns, at the end of the first quarter, Health gross current spending was over profile by €38 million (1.1%). This would indicate that there is a risk that Health may exceed the allocation set out in the Revised Estimates for Public Services (REV) 2016.
Following the flooding in late 2015 and the early part of this year, it is estimated that an additional allocation for the Department of Transport, Tourism and Sport will be required this year to enable necessary recovery and repair work on transport infrastructure.
While not evident in the end quarter Exchequer returns, it can be anticipated that Departments will have demands for additional resources. These demands can arise in relation to both current and capital expenditure. For example, in the Education sector, re-phasing of funding for the school building programme to 2016 would allow earlier completion of some projects.
It should also be noted that the aggregate level of spending pressures may be somewhat mitigated by savings across Government Departments that can emerge later in the year.
The estimates of fiscal space for the period 2017-2021 set out in Table A.9 of the Department of Finance's Budget 2016 publication sets out the walk between the gross fiscal space consistent with the forecast Expenditure Benchmark and the net fiscal space available over the medium term estimated at Budget time in October 2015 that after taking account, in relation to Voted expenditure, of:
- projected expenditure pressures in Health, Education and Social Protection arising from demographics;
- projected additional expenditure in Agriculture arising from the roll-out of the Rural Development Programme;
- the projected carry over impact of certain Budget 2016 measures;
- the capital expenditure increases in the Public Capital Plan; and
- savings arising from expected lower numbers on the Live Register.
Given that the fiscal space in Table A.9 of the Budget book is calculated by reference to the Expenditure Benchmark estimated in October 2015, additional expenditure in 2016 may become part of the base expenditure for 2017 and consequently should not be expected to impact on the fiscal space available for subsequent years. However, as outlined above, expenditure pressures in 2016 may arise on both current and capital expenditure, and, given the favourable treatment of capital formation increases under the Expenditure Benchmark, any impacts on fiscal space can only be fully assessed when the full details of any additional expenditure in 2016 are available and also in light of consideration of the impact of the General Government Finance statistics for 2015 recently published by the CSO on updated estimates of fiscal space for 2017.
72. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform to clarify the issue of meetings held over the winter with representatives of the insurance industry; if he has reached agreement on home owners being refused flood cover because of the perceived threat of flooding; if he will advise residents accordingly; and if he will make a statement on the matter. [9172/16]
View answerThe Office of Public Works (OPW) has no role or function in relation to the oversight or regulation of insurance matters. The provision of insurance cover, the level of premiums charged and the policy terms applied are matters for individual insurers.
As I informed the Deputy in reply to his question on 14 April last on this subject, the Taoiseach, Tanaiste and other Ministers, including myself, met the CEOs of the insurance industry on 12 January of this year to communicate the benefits of flood defence schemes carried out by the Office of Public Works and to discuss the provision of flood insurance in areas protected by flood defence schemes. Subsequently, Insurance Ireland, the representative body for the insurance industry, advised that approximately 98% of property insurance policies nationally include flood cover and that in areas protected by flood defence schemes constructed by the Office of Public Works (OPW), 83% of policies include flood cover. Insurance Ireland advised that the rate of cover is 89% in areas protected by fixed defences and 78% where the protection includes demountable defences. Demountable defences are used in four of the sixteen schemes that have been completed to the 1:100 year standard, required by the industry. A further meeting of the OPW/Insurance Ireland Working Group on flood insurance (which also includes the Department of Finance) took place on 7 March, and a further meeting is scheduled for June.
The subject of insurance against the risk of flooding is one of the issues being considered by the Inter-Departmental Committee which is developing whole-of-Government policies to support the OPW Flood Risk Management Plans. In this context, officials of the Department of Finance are undertaking research in the area of flood insurance which will include an analysis of the different approaches to flood insurance taken in other countries. This will then feed into a report from the Committee to Government which is expected to be completed before the summer.
73. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which European Union grant support continues to be made available to indigenous companies in the manufacturing and services sectors in respect of innovation and technology in the past four years; the extent to which such support is expected to continue in the future; and if he will make a statement on the matter. [8924/16]
View answerThe availability of European research and innovation programmes provides Ireland with valuable mechanisms for firms - indigenous and multinational - to engage in high-level international research to further their innovativeness and competitiveness. These programmes are also a critical source of non-Exchequer funding for this important economic activity. The current EU Framework Programme for research and innovation, which is part of the drive to create new growth and jobs in Europe, is Horizon 2020. Horizon 2020 has a budget of almost €75 billion and runs over the period 2014-2020. Irish companies who compete successfully for funding from Horizon 2020 will boost their innovative capability and competitiveness which in turn this will deliver strong national economic impacts.
In the first 23 months of Horizon 2020, 588 Irish applicants were successful in securing funding. For this period, Ireland's drawdown was €251 million, giving an overall Irish success rate of 14.62% (higher than the EU Member State average of 13.5%). Of this funding, over €72 million went to companies and €52 million of the €72 million went to SMEs.
Of the €251 million drawdown, over €9 million was for advanced manufacturing and processing. It is not possible to disaggregate the total figure for supports for the manufacturing and services sectors as they are included in other calls, such as the SME Instrument.
Ireland performed excellently in the previous Framework Programme, FP7, which ran over the period 2007- 2013. Ireland’s total drawdown in FP7 was €625 million. Of this funding, industry had a drawdown of €164 million and 72% of the industry total (€118.5 million) was drawn down by SMEs. The total figure for supports in the manufacturing and services sectors cannot be disaggregated from the total FP7 drawdown.
Ireland has an ambitious target of winning €1.25 billion under Horizon 2020, which we are on target to meet. Our strategy to achieve this target is being driven by the Horizon 2020 High Level Group, chaired by my Department. All Departments and Agencies engaged in research funding are represented on the High Level Group and particular attention is being given to maximising industry participation in Horizon 2020.
80% of the Horizon 2020 budget (€61 billion) is to be allocated between 2016 and 2020, which gives Irish companies the opportunity to continue to availing of these supports. Irish academics and companies will continue to be supported in their engagement with the opportunities available by the Horizon 2020 National Support System. The National Support System is coordinated by Enterprise Ireland and the National Director for Horizon 2020 leads a team comprised of representatives across the research funding departments and agencies.
74. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation his views on the extent to which lack of working capital continues to be identified by indigenous small enterprises in the manufacturing sector and in the services sector as an obstacle to expansion; the degree to which he has brought these issues to the attention of the relevant authority; and if he will make a statement on the matter. [8925/16]
View answerOver the last five years the Government has worked tirelessly to ensure that the access of SMEs to an appropriate supply of financing from both bank and non-bank sources is improved and that all businesses have access to appropriate sources of finance to grow develop and expand. A number of key policy and legislative initiatives were developed and delivered since March 2011 with some being reviewed and amended as necessary, and these may be grouped as follows:-
Credit Guarantees
- The Credit Guarantee Act 2012, and Schemes made thereunder, have resulted in encouragement of bank lending to Irish SMEs to both create new jobs and protect existing ones. To date approx. €50 million of loans have been sanctioned in more than 300 facilities, and some 2200 jobs were created/maintained;
- The 2012 Act was reviewed in 2014-2015, and, in February of this year, the Credit Guarantee (Amendment) Act, 2016 was enacted. New Schemes are currently being drafted to extend the remit of credit guarantees (covering expanded forms of lending, and greater risk sharing), and introduce new counter guarantees to enhance the provision of both State and EU-sourced finance for Irish SMEs;
Microfinance Ireland (MFI)
- The Microenterprise Loan Fund Act, 2012 established MFI to provide loans of up to €25,000 to Irish micro-enterprises. To date approx. €13 million was been loaned to 870 firms, with more than 2000 jobs being created/maintained.
- As with credit guarantees, the operation of MFI was reviewed in 2015, and a number of changes were made to ease access to loans primarily, via the removal of the previous pre-requisite of a bank loan rejection. The legislative changes have resulted in a substantial increase in the activities both nationally and regionally in the last year and a half.
Strategic Banking Corporation of Ireland (SBCI)
- The Strategic Banking Corporation of Ireland Act 2014 established the SBCI, and tasked it to provide up to €800m of funds for Irish SMEs previously over reliant on bank financing. This tranche of funding has now been fully committed to business.
Prompt Payments Code (PPC)
- In May 2015, the Government launched the PPC to encourage and promote best practice between businesses and suppliers and improve cash flow for businesses and, ultimately, drive a change in the payment culture in Ireland.
Credit Review Office
- The Credit Review Office continues to review applications for credit made by SMEs or Farm borrowers with viable business propositions who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland, Allied Irish Bank or Ulster Bank.
- The Credit Review Office also examines cases where borrowers feel that the terms and conditions of their existing loans, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment.
My Department Officials continue to work with other Departmental and Agency officials through the State Bodies Group chaired by the Department of Finance to ensure appropriate financing options are available to SMEs, and are currently continuing to work on developing an export finance strategy with the objective of delivering a product to market this year in line with commitments in the Action Plan for Jobs 2016 in this area. In addition work is continuing on implementing a full range of actions in the finance for growth arena detailed in Chapter 7 of the Action Plan for Jobs 2016.
The Government will continuously monitor the availability of credit to our SMEs to ensure that our SMEs are well positioned to grow further in our recovering economy and continue to create further jobs.
75. Deputy Eugene Murphy asked the Minister for Jobs, Enterprise and Innovation when the promised 50 jobs that were announced for Roscommon town in autumn 2015 will be created. [9156/16]
View answerIn June 2015, together with IDA Ireland, I was delighted to welcome plans by Moss Vision to establish a facility in Roscommon town to manufacture ophthalmic products. The facility will also act as a sales, marketing and distribution centre for the company’s European operations. The job target is for 50 positions to be created over a seven year period. There are currently six people employed by the company in Roscommon, with further positions expected to be filled this year. I understand as well that production is planned to begin at the facility later this summer and that more hiring will take place thereafter, in line with the company’s business and production requirements.
76. Deputy Dara Calleary asked the Minister for Agriculture, Food and the Marine to review a penalty imposed on a person (details supplied) in respect of land issues. [8814/16]
View answerThe EU Regulations governing the administration of these schemes require that full and comprehensive administrative checks, including in some cases Remote Sensing (Satellite) inspections be completed to confirm eligibility under the schemes.
The 2014 Single Farm Payment/Disadvantaged Areas Scheme application of the person named was selected for a remote sensing inspection. This inspection identified discrepancies between the area declared and the area determined resulting in an over-declaration in area of greater than 50%. Based on the terms and conditions of the scheme this resulted in no payment being due under the 2014 Single Payment Scheme and the application of an administrative fine to be offset against any future EU payments. The person named was notified of this decision on 19 November 2015.
The person named sought a review of the inspection findings and a field visit was arranged to verify the eligibility of the land on the ground. This field visit, while reducing the ineligible area, resulted in an over-declaration in area of greater than 20%, which under the terms and conditions of the scheme resulted in no payment being due under the 2014 Single Payment Scheme to the person named. My Department will shortly notify the person named of the outcome of this review and of their right to seek a further review of the inspection decision.
In the event that the person named is dissatisfied with the outcome of any such further review the decision can be appealed to the independent Agriculture Appeals Office, within 3 months.
77. Deputy John Brassil asked the Minister for Agriculture, Food and the Marine to expedite the approval of an application by a person (details supplied) under the targeted agricultural modernisation scheme 2; and if he will make a statement on the matter. [8816/16]
View answerThe applicant in question applied for a meal bin and feeders in the Dairy Investment Scheme in TAMS II Tranche one, and for a bulk tank, also in the Dairy Investment Scheme and a slatted shed and tank in the Animal Welfare, Safety and Nutrient Storage Scheme under separate applications in Tranche two. The applications for both tranches in the Dairy Investment Scheme have passed the administration checks and approval in respect of the investments applied for in Tranche one will be issuing in a matter of weeks. The application under the Animal Welfare, Safety and Nutrient Storage Scheme has to be examined. All of the applications submitted in Tranche two have to be examined and ranked and selected before the approval process can commence.
78. Deputy Dara Calleary asked the Minister for Agriculture, Food and the Marine the status of a payment to a person (details supplied) under the 2015 disadvantaged areas scheme. [8841/16]
View answerAn application under the 2015 Areas of Natural Constraint Schemes was received from the person named on 29 May 2015. Processing of the application has recently been finalised and payment will issue to the nominated bank account of the person named shortly.
