Written Answers Nos. 89-103
89. Deputy Éamon Ó Cuív asked the Minister for Finance if he will alter the terms of the help-to-buy scheme to ensure that all those persons that had not drawn down their full mortgage by 19 July 2016 would be eligible for the scheme; the reason that date was chosen in the first place; and if he will make a statement on the matter. [2365/17]
View answerThe commencement date for the Help to Buy scheme of 19 July 2016 was chosen as it was the date of the launch of 'Rebuilding Ireland Action Plan for Housing and Homelessness, in which the development of such a scheme for inclusion in the Budget was initially announced. The intention to backdate this tax incentive to this date was announced at that time with a view to avoiding any potential interruption in house sales, by purchasers who may otherwise have deferred purchases, pending the commencement of the incentive.
I have no plans to backdate the scheme prior to 19 July, as to extend eligibility for the scheme further back than the date of its initial announcement would consist entirely of deadweight. One of the primary policy aims of the incentive is to assist those struggling to save for the deposit required in purchasing a house. Individuals who purchased new homes before the announcement of the incentive, did not need the assistance of the State to fund the required deposit. Such individuals made their purchasing decisions on the basis of the information available to them at the time of purchase, and could not have expected a subsequently introduced tax relief to also be available to them. Similarly, those who commenced the drawdown of agreed mortgages in respect of self built properties before 19th July, could also not have expected a subsequently introduced tax relief to be available to them.
As with all time bound reliefs, there will always be those who just miss out on qualification. I do not intend to extend the parameters of this new measure any further as it would become less targeted and more costly.
90. Deputy Pearse Doherty asked the Minister for Finance the number of properties owned by NAMA as opposed to property debt owned; the description and approximate value for each property, both residential and commercial, in tabular form; and if he will make a statement on the matter. [2447/17]
View answerThe Deputy will be aware that NAMA does not generally own property. Rather it has acquired loans for which the properties act as security.
NAMA has been very active in seeking to facilitate the provision of social housing through its portfolio wherever possible. Working in conjunction with the Department of Housing, Planning, Community & Local Government, NAMA offered residential units, for sale or lease, to the Housing Agency and to the local authorities. This process has resulted in demand being confirmed for 2,748 units, of which 2,378 have already been delivered. To ensure efficient delivery of these units, NAMA established a special purpose vehicle, NARPS, to acquire the properties and lease them directly, on a long-term commercial basis, to local authorities and approved housing bodies. I am advised that, of the 2,378 houses and apartments delivered to date, 1,014 of these were delivered through NARPS and a further 337 properties are contracted for acquisition, but not yet complete. I am further advised that the NARPS portfolio comprises properties primarily located in Dublin (43%) and Cork (23%) and is made of 61% apartments and 39% houses.
Outside of NARPS, I am advised that NAMA holds 11 other properties, mainly land and development assets, which are zoned and designated for commercial use. The majority of these were taken onto NAMA's balance sheet arising from legal and insolvency agreements and are intended for sale once such outstanding matters are resolved. Nine of these assets are in Ireland with an additional two assets located abroad.
Finally, due to the commercial sensitivity of such information, individual property valuations are not provided. However I am advised that, in aggregate, the book value of these properties, including the NARPS properties, was approximately €285m at 31 December 2016.
91. Deputy Pearse Doherty asked the Minister for Finance the number of vacant homes State-backed banks have in their possession as of 16 January 2017; the number they have given or sold to the Housing Agency or any other State body in each of the past five months; and if he will make a statement on the matter. [2448/17]
View answerI am firmly of the view that the Irish banking system has an important role to play in the normalisation of the Irish housing sector through the speedy return of properties in their possession to the general market. I am also conscious that where a bank comes into possession of a property the institution has a fiduciary responsibility to dispose of the property in a manner that satisfies its independent, commercial mandate. However I welcome the fact that this is now also happening through interaction with the Housing Agency, local authorities or other means.
As the Deputy is aware, the Minister for Housing, Planning, Community and Local Government this summer launched Rebuilding Ireland, the Action Plan for Housing and Homelessness. The Action plan represents a whole of government response to the issues in the housing market with actionable measures across a wide range of areas, designed to stimulate housing supply and remove many of the barriers to a normally functioning market.
The Department does not have the information requested by the Deputy. However I have received the following responses from the three banks in which the State has a shareholding:
AIB
All disclosures in relation to AIB's residential mortgages properties in possession can be found on page 53 of AIB's Half-Yearly Financial Report 2016. It is bank policy to sell all assets on a vacant possession basis. AIB has engaged directly with the Housing Agency to provide a list of more than 500 properties for consideration. As at end of December the Housing Agency has expressed an interest in over 200 of these properties with 140 of these sale agreed. AIB continues to work directly with the Housing Agency to ensure all suitable properties are made available for consideration.
PTSB
Permanent TSB have informed me that all disclosures in relation to PTSB's residential mortgages and related properties in possession can be found on page 88 of PTSB's Half-Yearly Financial Report 2016. It is PTSB's policy to sell all assets on a vacant possession basis. The bank has also informed me that the actual number of vacant properties in Permanent TSB possession 31 December 2016 was 437 and within the last five months, the bank has completed one repossession sale to a local authority and one mortgage to rent sale to a housing body. Separately PTSB has been engaging directly with the Housing Agency since 2015.
Bank of Ireland
According to Bank of Ireland, all regulatory required disclosures for Bank of Ireland, including those related to property, can be found in their annual report.
92. Deputy Michael McGrath asked the Minister for Finance the timeframe it currently takes from application to registration by the Revenue Commissioners for builders seeking to be registered for the help-to-buy scheme; and if he will make a statement on the matter. [2453/17]
View answerI am informed by Revenue that completed applications for registration as a 'qualifying contractor', for the purposes of the Help To Buy incentive are generally processed within one week of their application.
Once the application contains all the relevant information required, which is set out in section 477C(2) Taxes Consolidation Act 1997, Revenue are able to determine if an applicant should be registered as a 'qualifying contractor', and subsequently publish his or her details on the Revenue website. Revenue are required to be satisfied that applicants meet the compliance levels required, which involves having a valid tax clearance certificate and being considered compliant for Relevant Contracts Tax (RCT) purposes.
I am further informed by Revenue that up to 17 January 2017, there have been 44 applications for registration from contractors, 7 of which have been registered as 'qualifying contractors' and have had their details published on the Revenue website. There has been a marked increase in the number of contractors applying for registration recently, with half of the 44 applications being received in the last week alone. Revenue has prioritised the processing of these applications and will continue to do so in order to ensure that there are no unnecessary delays in registering 'qualifying contractors'.
Revenue have provided a range of information and summary guidance about the registration process on their website, and this has been circulated to relevant sectoral bodies. Where incomplete applications have been submitted, or further information is required, these applicants will be advised as to what outstanding items or compliance issues need to be addressed in order to apply successfully.
93. Deputy Michael McGrath asked the Minister for Finance his views on the current regulatory environment for credit unions; the future vision he has for credit unions here; if he has considered the expansion of credit services for credit unions; and if he will make a statement on the matter. [2455/17]
View answerMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
While it is important to distinguish this division of roles, it is equally important to recognise that both the Registrar of Credit Unions and the Minister for Finance work together for the safety of members' savings and the security of the credit union sector.
Credit unions have a key role to play in providing access to credit and other important services in local communities throughout the country. In June 2016 the Credit Union Advisory Committee (CUAC) carried out a review, at my request, of the Implementation of the Recommendations set out in the Report of the Commission on Credit Unions. This significant report provides an in-depth analysis of the sector. Its recommendations are based on that analysis and on the views of a range of stakeholders, thus ensuring a balanced report providing focused and effective recommendations. CUACs recommendations are set out under seven specific headings: tiered regulation, section 35, consultation and engagement with the Central Bank, governance, restructuring, business model development and additional matters. The report also fulfils one of the key credit union objectives as outlined in the Programme for Partnership Government.
An Implementation Group, comprising representatives from a number of credit union stakeholder groups, from CUAC, from the Central Bank and headed up by a Department of Finance Official, will meet in the coming weeks to begin overseeing and monitoring implementation of those recommendations. It is expected that implementation of those recommendations will assist credit unions in developing their business models.
The Government wants not only strong, vibrant credit unions offering a safe and secure place for members' savings but also credit unions' being appropriately positioned to offer their members a wide range of services including loans, debit card facilities and new facilities based on the needs of their membership.
This Government recognises the important role of credit unions as a volunteer co-operative movement in Ireland and the Government's priorities remain the protection of members' savings, the financial stability of credit unions and the sector overall and it is determined to continue to support a strengthened and growing credit union movement.
94. Deputy Niall Collins asked the Minister for Finance the last time the Comptroller and Auditor General audited the Design Crafts Council of Ireland; and if he will make a statement on the matter. [2503/17]
View answerI wish to advise the Deputy that the Design Crafts Council of Ireland does not fall under the remit of my Department. However, the Office of the Comptroller and Auditor General has advised that it does not audit the annual accounts of this Council. If you have any further queries in relation to the Council you may wish to refer them to my colleague the Minister for Jobs, Enterprise and Innovation under whose remit the Council falls and who may be in a better position to provide you with a more informed response.
95. Deputy Niall Collins asked the Minister for Finance the actions he is taking to increase the rate of credit lending to businesses via the Strategic Banking Corporation of Ireland; the level of take up from the fund by businesses at 31 December 2016; and if he will make a statement on the matter. [2509/17]
View answerThe Strategic Banking Corporation of Ireland (SBCI) began lending in March 2015 and its purpose is to increase the availability of low cost, flexible funding to SMEs. The SBCI does not lend directly to SMEs, rather it channels its funds through lending partners, known as on-lenders. At present, the SBCI has eight on-lending partners, including both bank and non-bank finance providers.
The SBCI received initial funding of €800 million from EIB, KfW and the NPRF (now ISIF) to support its lending activity. It has since also received further long term funding from the NTMA and the Council of Europe Development Bank. The SBCI now has a funding capacity of over €1.2 billion to support Irish SMEs investing in and growing their businesses. In December 2016, the SBCI signed a risk sharing agreement under the COSME programme with the European Investment Fund. This facility will be used to support the delivery of additional credit to the Irish market through SBCI guarantee products in 2017.
To the end of September 2016, over 10,600 SMEs, operating across all business and economic sectors of the Irish economy, have benefitted from €458 million of SBCI loans. There is a broad geographical spread of the SMEs supported with the majority of them based outside Dublin. I understand that the SBCI will make its lending figures to the end of December 2016 available in the coming weeks and these will be published on its website.
The level of lending to SMEs through the SBCI is ultimately driven by market demand. However, the SBCI is seeking new on-lenders to broaden its distribution capability and market coverage as well as encouraging competition in the SME Finance Market.
96. Deputy Niall Collins asked the Minister for Finance the bilateral meetings he has had with his European counterparts, outside of Council of Europe meetings, since the UK referendum to leave the EU took place, in which the issue of Brexit and the unique challenges faced by the island of Ireland was discussed, including the name of each European Government ministerial counterpart, the meeting location and the date of each meeting, in tabular form; and if he will make a statement on the matter. [2518/17]
View answerSince the UK referendum outcome, I have met with my EU counterparts at the monthly Ecofin and Eurogroup meetings, most recently at the December meetings which took place on 5-6 December last.
In addition, in relation to specific individual meetings where Brexit has been discussed, the following have taken place:
|
Bilateral Meetings |
Location |
Date |
|
Philip Hammond, UK Chancellor of the Exchequer |
London, UK |
22 September 2016 |
|
Peter Kažimír, Slovak Minister for Finance |
Bratislava, Slovak Republic |
28 October 2016 |
|
Edward Scicluna, Maltese Minister for Finance |
Brussels, Belgium |
7 November 2016 |
|
Philip Hammond, UK Chancellor of the Exchequer |
Dublin, Ireland |
9 January 2017 |
The meetings with Chancellor Hammond have provided the opportunity to engage constructively on the strong relationship between our countries, the importance of trade between the two economies, and on the many areas of common interest shared by Ireland and the UK. I have reiterated to the Chancellor that the Irish Government's headline priorities concerning Brexit remain the economy, Northern Ireland, the Common Travel Area and the future of the EU itself. Chancellor Hammond is aware that Ireland remains a committed EU Member State and will be part of the EU 27 team during the forthcoming negotiations. We want negotiations to be constructive and believe that a close and positive future relationship between the UK and the EU post-departure is of benefit to all.
While Brexit issues were not central to the discussions which took place with Ministers Kažimír and Scicluna, where EU Presidency issues were the main topics, I have taken the opportunity, in exchanges with EU partners, to underline Ireland's unique relationship with the UK. As the Deputy will be aware, the key issues for Ireland, associated with the referendum outcome, including our close economic relationship with the UK, have been articulated on numerous occasions by me and other members of the Government.
The Government and I will continue to meet and engage with our EU counterparts over coming weeks to emphasise Ireland's concerns and to ensure that they are fully reflected in the EU position once negotiations commence.
97. Deputy Joan Burton asked the Minister for Education and Skills the measures his Department has put in place to ensure third level institutions adhere to standard public sector promotion procedures in keeping with the Haddington Road agreement; and if he will make a statement on the matter. [2336/17]
View answerThird-level institutions have autonomy in relation to promotion policies and other human resource policies, subject to the requirement to comply with Government policy in respect of employment numbers. Employers in the higher education sector are also required to operate in accordance with the provisions of national industrial relations agreements. My Department is not aware of any instance in which a third-level institution is not operating in accordance with good practice in relation to promotion and/or recruitment. My Department also understands that all third-level employers have adhered to the terms of the Haddington Road Agreement and are operating in accordance with the provisions of the Lansdowne Road Agreement. In the event that a union believes that an employer in the higher education sector is not acting in accordance with the terms of the Lansdowne Road Agreement, that union can seek to have the matter addressed using the dispute resolution procedures provided for in the Agreement, and any individuals who have issues of dispute have a variety of dispute resolution options open to them.
98. Deputy Paul Kehoe asked the Minister for Education and Skills the status of the new building for a school (details supplied); and if he will make a statement on the matter. [2228/17]
View answerThe major building project referred to by the Deputy is at an advanced stage of architectural planning - Stage 2(b), which includes the applications for Planning Permission, Fire Certificate and Disability Access Certificate and the preparation of Tender Documents. All statutory approvals have been secured.
The Design Team have been requested to review the impact of the recently introduced changes to the Public Works Contracts (PWC) and to revert to my Department with an assessment of what, if any, additional works are required to bring the tender documents into line with those changes.
Once the Stage 2b (Detailed Design) submission is received and reviewed by my Department and subject to no further issues arising my officials will revert to the school with regard to the further progression of the project at that time.
99. Deputy Denise Mitchell asked the Minister for Education and Skills the way in which public funding is being distributed on salaries at a university (details supplied); if there have been any changes in policy with regard to salaries within the university and a change in policy with regard to the way promotions and permanency of employment are provided to certain grades of employee; and if he will make a statement on the matter. [2237/17]
View answerMy Department allocates recurrent funding to the Higher Education Authority (HEA) for direct disbursement to the HEA designated higher education institutions, including the university referred to by the Deputy. The internal disbursement of funding is then a matter for the individual institution. Universities are autonomous bodies as set out in the Universities Act 1997 and are responsible for their own day to day affairs.
As the Deputy will be aware, since the introduction of the moratorium on public sector recruitment, an Employment Control Framework (ECF) has been in place for the higher education sector which provides institutions with considerable flexibility to fill vacancies, through recruitment or promotions on the basis of meeting an overall ceiling of posts.
In Budget 2015, the Minister for Public Expenditure and Reform announced that the existing ECFs and associated moratoriums would be lifted and replaced with a system of delegated sanction for recruiting and promoting up to Principal Officer level, subject to adherence by Departments to binding pay ceilings and ongoing compliance with Workforce Planning requirements. In light of this announcement it is hoped that a new Delegated Sanction Agreement for the higher education sector will be put in place shortly.
100. Deputy Michael McGrath asked the Minister for Education and Skills if he will assist a person (details supplied) in securing permission to use certain published material. [2262/17]
View answerThe State Examinations Commission has statutory responsibility for operational matters relating to the certificate examinations. In view of this I have forwarded your query to the State Examinations Commission for direct reply to you.
101. Deputy Brian Stanley asked the Minister for Education and Skills his plans to provide ASD units in a school (details supplied) to cater for those girls that finish in the preschool units and are not able or ready to attend mainstream classes. [2273/17]
View answerThe National Council for Special Education (NCSE) is responsible for organising and planning provision for children with Special Educational Needs, including establishing special classes in mainstream primary and post primary schools.
Special classes are part of a continuum of educational provision that enables students with more complex special educational needs to be educated, in smaller class groups, within their local mainstream schools.
Progress in developing the network of Special Classes has been significant and there are currently 1,153 available, which is an increase of over 100% on the number available in 2011, which was 548. Of these, 127 are ASD early intervention classes, 525 are primary ASD classes and 237 are post-primary ASD classes.
Early intervention classes are intended to provide early support for children with ASD before they start school. Following early intervention children will attend a mainstream class unless there is professional guidance that they require a special class.
Special classes offer a supportive learning environment to students with ASD who are unable to access the curriculum in a mainstream class, even with support, for most or all of their school day. Special classes for students with ASD are staffed with a lower pupil–teacher ratio of 6:1 at primary level and 6:1.5 at post primary level, and also have Special Needs Assistant support normally amounting to 2 SNAs for a class of 6 children.
Students enrolled in special classes should be included in mainstream classes to the greatest extent possible, in line with their abilities.
The NCSE has informed my Department that they are satisfied that there are sufficient ASD Primary special class placements to meet existing demand in the area referred to by the Deputy.
With regard to future potential need in this area, the NCSE has advised that they are continuing to engage with schools in the area to open special classes where there is an identified need for special class provision.
All schools have the names and contact details of their local SENO and parents are encouraged to liaise with the local SENO to discuss placement options for their child using the contact details available on www.ncse.ie.
The NCSE recently launched guidelines for Boards of Management and Principals of Primary and Post Primary schools which provide information on setting up and organising special classes. These guidelines are available to download from www.ncse.ie.
102. Deputy Peter Fitzpatrick asked the Minister for Education and Skills the status of a school building project (details supplied); and if he will make a statement on the matter. [2275/17]
View answerThe project to which the Deputy refers has reached an advanced stage of architectural planning, Stage 2b, which involves securing the statutory approvals and the preparation of tender documents.
The design team was appointed in March 2011 and the brief was to provide an extension and refurbishment work on a phased basis with a partial decant of classrooms on the existing site. The project was included in the five year construction programme 2012-16 and was scheduled therein to commence construction in 2014.
Planning permission was granted in January 2014. However, since then the Board of Management and its design team have presented a number of proposals to the Department to change the brief for the project to one which involves a single decant and a single phased delivery during construction. This has led to significant delays in the progression of the project. The most recent decant option, which included the provision of significant levels of new temporary accommodation on site involved an additional cost for the project in the region of €2 million – an increase in the overall cost of the project of around 40%.
The additional €2 million cost for the project arising from the Board of Management's single phase decant and construction proposal raised serious questions as to the viability of the project.
A meeting was convened by my Department, to which the Board of Management and their Design Team were invited in order to resolve any outstanding issues in this regard to enable Stage 2b to be finalised.
That meeting was held on 11th November and agreement was reached in relation to a scaling back of the temporary accommodation costs which should now allow the project to progress to the completion of the design stages.
When the revised Stage 2(b) submission has been submitted and approved, my Department will revert to the Board of Management at that time with regard to the further progression of the project to tender and construction. As with any project the progression to tender and construction will be contingent on the availability of funding at time.
103. Deputy David Cullinane asked the Minister for Education and Skills the person or body the Educational Procurement Service, EPS, is accountable to; if the EPS is accountable to him, the details of the systems, practices and procedures in place to facilitate the accountability of the EPS; the processes and procedures that are in place for him and his Department to review the decisions of the EPS; and if he will make a statement on the matter. [2337/17]
View answerUnder the Government’s Procurement Reform programme, led by the Office of Government Procurement (OGP), the Education Procurement Service (EPS) acts as the Education Sector hub. It is responsible for providing a service which facilitates the sourcing and tendering for Laboratory Equipment, Veterinary & Agriculture and Library for all of the public sector, and other education strategic procurements for the Education Sector. It is also responsible for representing the Education sector with OGP and promoting the OGP model across the Education sector.
The service provided by EPS facilitates the establishment of framework agreements, the completion of mini competitions and supports the public sector bodies through the sourcing and procurement process, enabling the organisations to make strong procurement decisions. EPS role as sourcing and procurement organisation is that of an expert advisor, it is not the decision maker in these activities. Procurement decisions around scope, product definition, requirements etc. are taken by the public sector bodies as are the decisions around evaluation and approval of the suppliers based on their responses to the particular procurement activity.
The EPS originated in the Higher Education sector, and the bulk of its work on the above categories is targeted toward that sector. Where the EPS undertakes procurement processes on behalf of the Higher Education sector, the EPS is answerable to that sector concerning the procurement process. Where it procures on behalf of other Public Sector Bodies, it is answerable to those bodies.
The Department works closely with the EPS to ensure that its processes and procedures are correct and in line with Government policy.
