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Thursday, 19 May 2016

Written Answers Nos. 119-125

Planning Issues

Questions (119)

Bernard Durkan

Question:

119. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government if he has studied the stalled development at Naas Town Centre, in County Kildare with particular reference to the adjourned arbitration procedure and the ongoing negative impact the delayed development continues to have on the town; if all the constituent bodies involved continue to engage adequately in order to bring about a speedy conclusion culminating in the resumption of activity on the site; and if he will make a statement on the matter. [11136/16]

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Written answers

I am informed by Kildare County Council that the securing of a satisfactory conclusion to the development of the Naas Town Centre site has been a particular focus of its efforts over the last number of years. In this connection, the Council - on foot of arbitration procedures - recently successfully completed an agreement with one of two site owners relating to the provision of roads infrastructure to service the Town Centre site. The arbitration case relating to the second site owner remains to be heard by the Property Arbitrator. I understand that the hearing in this case is not scheduled to take place until April 2017 due to the Property Arbitrator’s caseload.

In parallel with these arbitration cases, Kildare County Council has also been involved in ongoing discussions with the owner of the Town Centre site, and his agents, with a view to advancing development of the site as early as possible.

As indicated in replies to previous Questions tabled by the Deputy on this matter, the management of the development concerned is primarily a matter for Kildare County Council in the first instance, and I have no function in the matter.

Household Benefits Scheme

Questions (120)

Michael Healy-Rae

Question:

120. Deputy Michael Healy-Rae asked the Minister for Social Protection the status of the restoration of the telephone allowance for the elderly scheme; and if he will make a statement on the matter. [10996/16]

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Written answers

The overall concern in recent years has been to protect the primary social welfare rates. Expenditure on pensions at approx. €6.976 billion is the largest block of expenditure in the Department in the Estimate for 2016, representing approximately 35% of overall expenditure. Because of demographic changes, the Department’s spending on older people is increasing year on year. Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty.

The decision to discontinue the telephone allowance was estimated to provide annual savings of €48 million. These savings meant that the Department was able to retain the other valuable elements of the household benefits package such as the electricity and gas allowance and the television licence. The Department will spend approximately €227 million this year on these elements of the household benefits package for over 418,000 customers.

The cost of the telephone allowance scheme had risen significantly each year, as the number of eligible customers grew, arising from the increased number of pension recipients. In 2007 there were some 316,000 people receiving the telephone allowance compared to almost 396,000 at the end of September 2013, an increase of 25%, or an average increase of nearly 4% per annum.

Any decision to restore the telephone allowance would have to be considered in the overall budgetary negotiations.

The Government is keenly aware of the impact of Budget decisions on the Department’s clients, and strives to ensure that the money available is targeted in the most effective way. In Budget 2016, the first increase in the basic rate of the State pension in seven years was given. This has increased the personal rate of the non-contributory pension to €222, and that of the contributory pension to €233.30. There was also a €2.50 increase in the rate of the Fuel Allowance, from €20 to €22.50 per week. I believe that, taken together with other changes, such as increasing the Christmas Bonus to 75% of weekly rate, the impact of the last Budget has been very positive for older people.

I hope this clarifies the matter for the Deputy.

Jobseeker's Allowance

Questions (121)

Eoin Ó Broin

Question:

121. Deputy Eoin Ó Broin asked the Minister for Social Protection the legislation, regular actions, circulars and guidelines used when means-testing an application under the jobseekers' allowance scheme where the spouse lives and works outside the State; the allowance that is made in such circumstances in recognition of the family maintaining two homes; if so, in such circumstances, he will review the rules and introduce recognition of the additional costs associated with operating two homes for the purposes of calculating means. [10961/16]

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Written answers

The social welfare legislation underpinning means testing for the jobseeker’s allowance (JA) scheme, including the means of couples, is set out in Part 2 of the Third Schedule of the Social Welfare Consolidated Act 2005(as amended), with the corresponding regulations set out in Chapter 6 of S.I. 142 of 2007, Social Welfare (Consolidated Claims, Payments and Control) Regulations 2007 (as amended). These can be found on the Irish Statute Book website: http://www.irishstatutebook.ie/eli/2005/act/26/enacted/en/index.html and http://www.irishstatutebook.ie/eli/2007/si/142/made/en/pdf .

The Department’s means assessment guidelines are available on the Departmental website, at the following link: http://www.welfare.ie/en/pages/means-assessment.aspx. The JA scheme’s operational guidelines are also available on the Department website at: http://www.welfare.ie/en/Pages/Jobseekers-Allowance.aspx

There are two additional rules which relate specifically to cases where a jobseeker’s allowance claimant’s spouse is living outside of the State. As set out in Section 249 (6A) of the 2005 Act (as amended by Section 8 (2) (b) of the Social Welfare and Pensions Act 2014), it is not possible for a JA claimant to be paid an increase for a qualified adult in respect of a spouse living abroad. This provision can be found at the following link: http://www.irishstatutebook.ie/eli/2014/act/16/section/8/enacted/en/html#sec8.

The Department’s internal circular 42/14 addresses this legislative provision, and has been sent to the Deputy.

Related to this, Section 141 (2) (d) of the Consolidation Act (as amended by the Section 9 (a) of the Social Welfare and Pensions Act 2007 ) provides that where the spouse is not a qualified adult, the means of the claimant are taken to be one-half the means of the couple.

Where a JA claimant’s spouse is living outside of the State, a further difference in the means assessment may apply. In social assistance schemes generally, where a claimant and/or his/her spouse/partner owns a property other than the family home, the second property is assessed on a capital basis. However, if the spouse lives in the second property, it would not be assessed on a capital basis for social welfare means purposes.

Regardless of where a spouse lives, there are disregards in relation to their earnings. The first €60 of weekly earnings are disregarded, with the remainder assessed at 60%.

It should be noted that there is currently no provision, in social welfare means test arrangements, for any outgoings such as rent, mortgage payments or any upkeep costs to be disregarded in relation to a person’s family home. Accordingly, there are no additional disregards where a couple are living in two homes, either in Ireland or abroad. Any changes to the jobseeker’s allowance means assessment would have to be considered in the overall policy and budgetary context.

Rural Social Scheme

Questions (122)

Éamon Ó Cuív

Question:

122. Deputy Éamon Ó Cuív asked the Minister for Social Protection his views on the rural social scheme as a method of ensuring low-income farmers have an adequate livelihood while contributing to their communities; if he will expand the scheme; if he will reverse the cuts imposed by the previous Minister, by changing the rules of the scheme to the payment rates particularly for participants with dependants; and if he will make a statement on the matter. [10963/16]

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Written answers

The rural social scheme (RSS) provides income support for low income farmers and those engaged in fishing who have an entitlement to specified social welfare payments. One of the key eligibility criteria for participation in the scheme is that the participant must be underemployed in their primary activity i.e. either farming or fishing, and that their earnings are insufficient to support their family circumstances.

The scheme currently provides work opportunities for around 2,600 participants and 130 supervisory staff. Participants are engaged for 19½ hours per week to provide certain services of benefit to rural communities.

RSS payments are based on the rate of the underlying DSP payment plus €22.50 top-up, subject to a minimum weekly payment of €210.50. As the Deputy can appreciate, it is imperative that funding provided is targeted at low income earners. If participants no longer qualify for an eligible DSP payment, they are required to leave the scheme on grounds of non-eligibility after their contract of employment expires.

The number of places on the RSS has been maintained at the same level since 2006. As with all other activation and employment schemes funded by the Department, the operations are monitored on an on-going basis to ensure that the scheme remains effective, provides value for money, is aligned with other similar schemes and is in line with Government policies overall.

Farm Assist Scheme Payments

Questions (123)

Éamon Ó Cuív

Question:

123. Deputy Éamon Ó Cuív asked the Minister for Social Protection if he will reverse the means testing changes made by his predecessor under the farm assist scheme which have the effect in many cases of imposing a euro reduction for every euro earned to the rates of payment received by persons on the scheme, thus removing any incentive to persons to earn more income; and if he will make a statement on the matter. [10964/16]

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Written answers

The farm assist scheme provides support for farmers on low incomes and is similar to jobseeker’s allowance. Farm assist recipients retain the advantages of the jobseeker’s allowance scheme such as the retention of secondary benefits and access to activation programmes. The 2016 Revised Estimates for the Department provide for expenditure of almost €85 million on the farm assist scheme.

Changes introduced in Budgets 2012 and 2013 brought farm assist into closer alignment with the jobseeker’s allowance scheme’s treatment of self-employed persons. Farm families with the lowest income were least impacted by these changes as the headline rates of farm assist were maintained.

In December last all long term welfare recipients, including recipients of farm assist, benefitted from a 75% Christmas Bonus payment. All recipients of farm assist with children are benefiting from the €5 increase in child benefit rates payable from the start of this year. In addition, farm assist recipients eligible for the fuel allowance gain from the increase of €2.50 per week, from €20 to €22.50 per week over the fuel season.

All measures introduced, including proposals relating to the farm assist scheme, are assessed and analysed in terms of the impact they have. The Programme for Government contains the commitment to undertake a "Review of the Farm Assist Scheme, recognising the challenges facing farmers on low incomes". I have asked my officials to review the farm assist scheme from a policy and an administrative point of view. Any changes to the scheme will have to be considered in a budgetary context.

Farm Assist Scheme Administration

Questions (124)

Éamon Ó Cuív

Question:

124. Deputy Éamon Ó Cuív asked the Minister for Social Protection if he will award credits to all persons who were in receipt of farm assist prior to the change of rules that allows persons on farm assist to make self-employed pay related social insurance contributions, to ensure that they receive equal treatment with those on jobseekers' allowance; and if he will make a statement on the matter. [10967/16]

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Written answers

The farm assist scheme was introduced in 1999 to provide income support for low income farmers. It replaced the former smallholders’ unemployment assistance payment. In line with the then existing arrangements for unemployment assistance (including smallholders) and pre-retirement allowance, the income of farm assist recipients was exempt from class S PRSI for self-employed workers. Recipients of farm assist who had previously paid Class S social insurance had the option of paying voluntary contributions to maintain their social insurance record, provided they satisfied the qualifying conditions.

Since 1st January 2007, the exemption from class S PRSI has been removed and those receiving jobseeker’s allowance and farm assist are subject to Class S PRSI as self-employed contributors on their self-employed income, provided their annual income is €5,000 or more.

Currently PRSI credited contributions (credits) are only awarded to former employees, to cover gaps in social insurance where they are not in a position to pay PRSI such as during periods of unemployment, illness, etc. Self-employed workers do not qualify for credits.

Any proposal to award retrospective credits to farm assist recipients would have to be considered in the context of access to credits for all other categories of the self-employed and in the wider Budgetary context.

Child Benefit Data

Questions (125)

Seán Haughey

Question:

125. Deputy Seán Haughey asked the Minister for Social Protection the amount of child benefit paid in respect of children living outside the European Union area; and if he will make a statement on the matter. [10987/16]

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Written answers

Child benefit is payable in respect of children living outside the European Union where their parent(s) remain covered by Irish social insurance, with entitlement decided under Irish domestic legislation. These payments are made in circumstances where people are posted by their Irish based employers to work in other countries and continue to pay social insurance in Ireland.

As at 15 May 2016, child benefit was in payment to a total of 146 families resident outside the European Union, in respect of a total of 306 children. The annual expenditure based on these figures is estimated at €514,000.

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