Written Answers Nos. 54-73
54. Deputy Alan Kelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of complaints that were made to the CCPC in each of the years 2015, 2016 and to date in 2017 by industry sector; and the number of complaints in which no action was taken. [44430/17]
View answerThe Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for the enforcement of competition and consumer law in the State. Section 9(5) of the Competition and Consumer Protection Act 2014 provides that the CCPC is independent in the performance of its functions, including its day to day operational work regarding complaints made to it. Section 10 of that Act, which refers to the functions of the CCPC, states at subsection (8) that “Nothing in this section or any other provision of this Act imposes a duty on the Commission to consider whether to investigate a matter that is referred to it but the Commission may, in the case of a matter referred to it, consider whether to do so (and, accordingly, may proceed to investigate the matter) where it is satisfied the matter may affect competition or the interests and welfare of consumers or both.” I, as Minister for Business, Enterprise and Innovation, have no direct function in relation to such matters.
The CCPC’s Annual Reports contain details regarding the contacts made to it each year.
55. Deputy Alan Kelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the number of times the CCPC has made requests for additional personnel or financial resources since 2015. [44431/17]
View answer56. Deputy Alan Kelly asked the Tánaiste and Minister for Business, Enterprise and Innovation her views on whether the CCPC has enough resources to perform its functions in compliance with the legislation under which it operates. [44432/17]
View answerI propose to take Questions Nos. 55 and 56 together.
On one occasion each in 2015, 2016 and 2017, the Competition and Consumer Protection Commission (CCPC) requested additional personnel. In 2015, the request was for 16 additional personnel. In 2016, it requested 6 additional personnel and to date this year, it has requested 1 additional staff member. These figures do not include requests for backfilling of vacancies due to resignations, promotions, transfers, retirement etc. and neither does it refer to any request for the reconfiguration of grades in that Agency.
The requests for additional staff in 2015 and 2016 were considered in the context of the overall Departmental vote allocation and were not sanctioned. However, in July 2015, the CCPC was given approval by the Department under the Staffing Resource Management Framework to fill 25 vacant posts subject to the CCPC remaining within its current pay budget. It has received approval to fill any vacancy that has arisen since then that it has wished to be filled. The 2017 request for 1 additional staff member was also sanctioned.
Regarding its financial resources, the CCPC’s allocation is divided between “General Administration” and “Financial Information and Education Functions” expenditure. The first element covers the general administration and expenses of the CCPC in relation to the exercise of its statutory functions, except for its financial information and education functions and these expenses are funded through an exchequer grant each year. The second element is funded by a levy imposed on regulated financial service providers. As the levy is not collected until after mid-year, the Department of Business, Enterprise and Innovation prefunds the expenditure by the CCPC on these functions, on the proviso that the Department is reimbursed by way of Appropriations-in-Aid before year end. It is therefore exchequer neutral. The CCPC’s combined allocations since 2015 are set out in the table.
|
|
Allocation (Exchequer and Levy) ’000s |
Outturn ’000s |
|
2015 |
12,230 |
9,124 |
|
2016 |
12,141 |
9,181 |
|
2017 |
12,138 |
N/A |
Aside from the costs that would have been associated with the request for the additional 16 personnel in 2015, the CCPC did not request any additional financial resources that year. On one occasion in August 2016, it requested an extra €2.040m proposing to cover, amongst other matters, once off expenses arising from its planned move to new offices and the costs associated with its requests for additional personnel. In July 2017, it requested an extra €235,000 to cover new projects.
Due a variety of reasons, the CCPC’s expenditure for 2015 and 2016 was under the monies allocated to it and so its request for extra financial resources in 2016 was not granted. Its request in 2017 has been approved.
The CCPC’s requests for additional financial resources have to be managed in the context of the overall Departmental Vote allocation and bearing this in mind, I consider the CCPC to be adequately resourced.
57. Deputy Alan Kelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the meetings she has had with the CCPC. [44433/17]
View answerSince I have taken office as Minister for Business, Enterprise and Innovation, I had an introductory meeting with the Chairperson and two Members of the Competition and Consumer Protection Commission (CCPC) on 6 September 2017. I also met with the Chairperson of the CCPC on 5 October 2017 in the context of my meeting on Brexit with the heads of all relevant bodies under the remit of my Department.
58. Deputy Alan Kelly asked the Tánaiste and Minister for Business, Enterprise and Innovation the meetings her officials have had with the CCPC since 2015. [44434/17]
View answerIn compliance with the Service Level Agreement in place between the Department and the Competition and Consumer Protection Commission (CCPC), my officials meet formally with the Chairperson and other officials of the CCPC on a quarterly basis. The CCPC also meets with the Management Board of the Department at least once a year.
In addition, ad hoc meetings are scheduled as required to discuss matters of mutual interest.
59. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation when the €300 million Brexit loan scheme fund announced in budget 2018 will open for applications; the length of time the fund will remain open for applications; and if she will make a statement on the matter. [44454/17]
View answer60. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the criteria necessary for persons to apply for loans under the €300 million Brexit loan scheme fund announced in budget 2018; the minimum and maximum amounts permitted to be loaned; the collateral requirements which will be required; and if she will make a statement on the matter. [44455/17]
View answerI propose to take Questions Nos. 59 and 60 together.
The Brexit Loan Scheme will provide affordable working capital financing to Irish businesses that are either currently impacted by Brexit, or will be in the future. The new Scheme will be delivered by the Strategic Banking Corporation of Ireland (SBCI) through commercial lenders to get much needed working capital into Irish businesses.
The minimum loan size will be €25,000. The maximum loan size is still under review, but it will be in excess of €1 million.
The criteria for the Brexit Loan Scheme, including the collateral requirements, are still being finalised. Broadly, the Scheme will be open to businesses of up to 499 employees that can demonstrate that they are exposed to the impact (or potential impact) of the Brexit vote. They must also use the loan to meet working capital or cash flow requirements.
Further details of the scheme will be provided over the coming weeks. SBCI will issue an open call inviting lending institutions to participate before the end of October. The scheme is expected to be in place early in the new year. It is anticipated that the scheme will remain open until 2020.
61. Deputy Niall Collins asked the Tánaiste and Minister for Business, Enterprise and Innovation the individual allocation for each non-commercial State sponsored body under her Department’s aegis (details supplied) announced in budget 2018; and the 2017 allocation for each body. [44456/17]
View answerThe distribution of exchequer funding allocations as per the 2017 Revised Estimates Volume for each Agency under the aegis of my Department and as provided through my Department’s Vote is set out in the table.
|
2017 Revised Estimates Volume Allocations |
- |
|
Intertrade Ireland |
€7.960m |
|
IDA Ireland |
€179.264m |
|
National Standards Authority of Ireland |
€5.802m |
|
Enterprise Ireland |
€269.502m |
|
Science Foundation Ireland |
€172.631m |
|
Health And Safety Authority |
€18.112m |
|
Competition and Consumer Protection Commission |
€12.138m |
|
Personal Injuries Assessment Board |
€0.228m |
|
Low Pay Commission |
€477k |
|
Irish Auditing and Accounting Supervisory Authority |
€2.105m |
|
Local Enterprise Offices |
€32.93m |
The Deputy should note that the funding provision to Enterprise Ireland covers two subheads on my Department’s Vote, Subheads A7 and B4, which span general supports to indigenous firms and for research and development/innovation supports. The table above shows the combined allocations of the two subheads.
The table above does not capture other Exchequer funding being provided to Enterprise Ireland in 2017 through from the Votes of the Department of Agriculture, Food and the Marine and the Department of Communication, Climate Action and Environment.
Enterprise Ireland and IDA Ireland are also provided with funding from the National Training Fund (NTF).
The operations of a number of the enterprise agencies are also supported through the generation, retention and use of Agency Own Resource Income, which is subject to annual sanction by the Minister for Public Expenditure and Reform. The Agencies concerned are Enterprise Ireland, IDA Ireland, National Standards Authority of Ireland and the Health and Safety Authority.
The operations of the Personal Injuries Assessment Board (PIAB) is essentially self-financing from the fee generation received from personal injury claims, typically in the region of €12 million per annum.
The operations of the Irish Auditing and Accounting Supervisory Authority and the Competition and Consumer Protection Commission are part-funded through fees levied on certain activities provided to clients of both Agencies.
The funding provision to Inter-Trade Ireland is provided on a North-South basis and annual allocations are finalised in conjunction with the Northern Administration.
Responsibility relating to the Low Pay Commission transferred to my colleague, the Minister for Employment Affairs and Social Protection in September 2017.
The distribution of the 2018 allocations across each of the enterprise agencies will be determined through the 2018 Revised Estimates Volume (REV) process which will be conducted in the weeks ahead. It is expected that finalisation and publication of the 2018 REV allocations will be made in early December 2017.
62. Deputy Seán Haughey asked the Minister for Finance if individual taxpayers foregoing tax cuts and cuts to the USC in order that this money can be ring-fenced for specific purposes such as homelessness will be facilitated; and if he will make a statement on the matter. [44346/17]
View answerThe Office of the Revenue Commissioners is obliged to comply with its statutory tax and duty obligations. In so doing, it is required to apply any changes to tax or USC rates as passed by the Oireachtas. The question of Revenue applying rates other than those set out in statute does not therefore arise.
On the topic of ring-fencing tax receipts, from a budgetary perspective any move to hypothecate revenue from a particular source should in general be avoided. As this involves linking specific expenditure to an explicit revenue source, it is only used in limited circumstances where a strong justification exists as it can cause difficulties for the efficient and effective management of the public finances.
Furthermore, it also exposes specific expenditure solely dependent on a hypothecated revenue to any potential volatility associated with this revenue source. Therefore, a more stable and sustainable financing model is to fund expenditure centrally, which instead relies upon a number of sources of income and retains the flexibility to address changing spending priorities or revenue issues as they arise.
63. Deputy Barry Cowen asked the Minister for Finance the local property tax revenue that is expected to accrue to local authorities on the basis of the phasing out of the exemptions in 2019 for properties purchased in 2013 and for new and previously unused properties purchased from a builder or developer between 1 January 2013 and 31 October 2019. [44372/17]
View answer64. Deputy Barry Cowen asked the Minister for Finance the estimated amount of revenues lost due to all exemptions to the local property tax. [44373/17]
View answerI propose to take Questions Nos. 63 and 64 together.
I am advised by Revenue that the cost of all claimed exemptions to Local Property Tax (LPT) is estimated to be €12.5m for 2017. The estimated cost associated with the exemptions that are due to expire in 2019 is €3.5m.
These estimates include exemptions claimed in respect of properties purchased from a builder or developer since 1 January 2013 (in order to qualify for the exemption the property must be new and previously unused) as well as properties that were purchased as main residences in 2013.
The cost provided only includes properties where the liable person filed a return claiming the exemption. Where new and previously unused properties were purchased during the current Valuation Period (after 2013) there is no obligation to file an LPT return as they are not liable to the tax until the next Valuation Period (1 November 2019).
Revenue does however capture data relating to new and previously unused properties on the LPT Register via Stamp Duty records and through various other information sources but they do not have a valuation associated to them as they are considered not-liable for the current Valuation Period and are not included in the cost provided.
65. Deputy Barry Cowen asked the Minister for Finance if his Department, ISIF or another body under its aegis has received an ex-ante position from EUROSTAT on its plans to invest in the home building finance Ireland SPV. [44375/17]
View answerI am advised by my officials that no ex-ante position has been requested from Eurostat from any of the entities referred. It is important to note that Home Building Finance Ireland ('HBFI') has been designed to provide funding to commercially viable developments at competitive market rates and as such both the entity and its activities are expected to satisfy the requirements of an off-balance sheet investment model.
Officials in the Department of Finance will engage formally with the CSO in relation to HBFI in the coming months as the legislation required to establish the entity is finalised.
66. Deputy Barry Cowen asked the Minister for Finance if NAMA will charge a service fee to home building finance Ireland for use of its expertise in residential development funding. [44376/17]
View answerAs announced in my Budget speech on 10 October 2017, it is my intention to establish Home Building Finance Ireland (HBFI) to provide funding on market terms to viable residential development projects whose owners are experiencing difficulty in obtaining debt funding.
HBFI will be a standalone entity which will provide funding directly into the market.
HBFI will be designed to leverage off the extensive experience already available to the State to deliver this initiative and as such existing NAMA staff skills and expertise will be utilised to deliver this funding.
Any services provided by NAMA to HBFI will likely be provided under a service level agreement with HBFI re-imbursing NAMA appropriately for any services delivered. The exact staffing and servicing arrangements are currently being devised by my officials and NAMA and will be determined in due course.
67. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding the rise in stamp duty; and if he will make a statement on the matter. [44406/17]
View answerIn my Budget 2018 statement I announced an increase in the stamp duty rate for all non-residential property transactions, including agricultural land, from 2% to 6%. On the recommendation of the Minister for Agriculture, Food and the Marine I also extended consanguinity relief for another 3 years and provided that the stamp duty rate applying under that scheme will be fixed at 1%. Consanguinity relief is availed of in transferring farms to younger family members. It encourages the early transfer of farms to younger generations and is mostly relevant where the transferee does not qualify for an alternative relief such as the Young Trained Farmer stamp duty exemption.
Transitional arrangements for signed contracts would apply. These are likely to be the normal changes that apply in relation to stamp duty changes.
Details of these measures will be contained in the Finance Bill.
68. Deputy Michael McGrath asked the Minister for Finance the projects to sell loans currently in operation in each of the State supported banks; the name of each project; if the loans are performing or non-performing; the type of loan in each project; the face value of the loans in each project; the progress of these projects in terms of selling them; and if he will make a statement on the matter. [44445/17]
View answerAs the Deputy is aware, the relationship between the Minister for Finance and banks in which the State is a shareholder is governed by Relationship Frameworks, which can be found on my Department's website. In accordance with these Relationship Frameworks, I as Minister for Finance have no direct function in commercial decisions made by the banks, these decisions are the responsibility of the Board and management of the relevant institution. Notwithstanding the State's shareholdings in the banks, I must ensure the banks are run on a commercial and independent basis to protect their value as an asset to the State.
Notwithstanding the above, much of the information requested by the Deputy is not held within my Department. I would also suggest that the information requested is commercially sensitive, and I would not expect commercial organisations to publicly disclose information that would give advance notice to the market of their operational or strategic intentions.
To my knowledge, the banks in which the State is a shareholder are not in the practice of disposing of performing assets, and so I would expect any future disposals to be non-performing loans. As the Deputy will know, non-performing loans remain at an elevated level across the European banking system and addressing this issue is one of the key priorities for the Single Supervisory Mechanism (SSM).
In Ireland, significant progress has been made across the banking sector in reducing the level of non-performing loans since the financial crisis. Despite this progress, the level of such loans in here remains well above the European average. Hence, the SSM has tasked the management and board of each institution with developing and implementing a strategy to address this challenge. This challenge will have to be met irrespective of whether the State has a shareholding in the bank concerned or not.
In recent years Irish banks have introduced multiple engagement channels to facilitate those customers who are reluctant to engage directly with them. Having exhausted these initiatives, if meaningful engagement is not forthcoming from particular customers the bank may be left with no option but to look at alternative solutions which could, as a last resort, include the sale of the loan.
I have received the following comments on the Deputy's question.
AIB:
"Since 2013, AIB has reduced impaired loans from c. €30bn to €7.8bn at 30th June 2017, the vast majority, through case by case restructuring of personal and business customers in difficulty. AIB continues to have high levels of NPLs versus its European peers and has developed plans to reduce these levels over the medium term to address this risk and also to meet its regulatory requirements. In April 2017, AIB entered into a binding contractual agreement to sell an investment portfolio of impaired Buy-to-Let originated mortgage loans with a value of c.€200m.The majority of these loans are in deep long term arrears. A portfolio of UK based impaired unsecured loans was also sold in May 2017. The Bank continues its focus on supporting our customers in financial difficulty by actively implementing sustainable solutions to keep viable businesses operating and customers who engage with us in their homes where possible.
For commercial reasons the bank is unable to outline any specific details or plans at this stage."
PTSB:
“The Bank is in the process of appointing an advisor to assess and assist on potential loan sales. No final decisions have been made at this stage.”
69. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 111 of 3 October 2017, the average interest rate on the loans advanced by NAMA to developers; and if he will make a statement on the matter. [44446/17]
View answerI am advised by NAMA that its lending terms are in line with those available on the open market. The interest rates charged on loans advanced by the Agency typically comprise a margin over Euribor. Some facilities are by reference to the margin NAMA inherited from the participating institution. Typically however, the margin is determined by reference to the risk characteristics of each individual project, including the funding term, the equity contribution of the debtor and the loan-to-value. With due regard to the unique risk profile of each credit facility, I am advised that the margin charged on new development lending advanced by NAMA is generally of the order of 8%. I am advised that this margin is subject to regular review and may change in line with market conditions.
70. Deputy John Curran asked the Minister for Education and Skills if he will review the situation of a school (details supplied) in County Dublin that is not being sanctioned for an extra two or three teachers based on its enrolment figure; and if he will make a statement on the matter. [44297/17]
View answerI wish to advise the Deputy that my Department is reviewing the matter to which he refers and my officials will be in contact with the school in question shortly.
71. Deputy Fiona O'Loughlin asked the Minister for Education and Skills if he received a report (details supplied); and if he will be scheduling a meeting with his Department regarding same. [44299/17]
View answerI wish to confirm that my Department has received correspondence from the group referred to by the Deputy which includes a report as well as a request to meet with the group. A reply will issue shortly to the group in relation to this correspondence.
As the Deputy may be aware, in order to plan for school provision and analyse the relevant demographic data, my Department divides the country into 314 school planning areas. My Department uses a Geographical Information System (GIS) to identify where the pressure for school places across the country will arise. The GIS uses data from a range of sources, including the Central Statistics Office, Ordnance Survey Ireland, the Department of Social Protection and my Department's own databases. With this information, my Department carries out nationwide demographic exercises at primary and post primary level to determine where additional school accommodation is needed.
Where demographic data indicates that additional provision is required, the delivery of such additional provision is dependent on the particular circumstances of each case and may, depending on the circumstances, be provided through either one, or a combination of, the following:
- Utilising existing unused capacity within a school or schools,
- Extending the capacity of a school or schools,
- Provision of a new school or schools.
With regard to demand for particular models of school provision, it should be noted that the patronage process for new schools is a separate process which has been in place since 2011. This process is run after it has been decided that a new school is required. Parental preferences are central to this process and prospective patrons are required to provide evidence of demand for their particular school model and medium of instruction. Therefore, where, based on demographics, it might be indicated that a new school is required, it would not be appropriate to indicate that this would be a school under a particular type of patronage as this will be dependent to a large degree on parental preferences in the area at the time of a patronage process.
As with other school planning areas nationwide, the demographic data for these school planning areas is being kept under ongoing review by my Department to take account of updated child benefit data and updated enrolment data. It is anticipated that decisions based on these exercises will be announced later in 2017. In addition, I understand that the patron body referred to in the details supplied by the Deputy is involved in substantial discussions with the patron of an existing expanding school in the area in relation to a possible partnership to provide a broader choice of patronage. I welcome this development as an excellent example of constructive cooperation between patron bodies in introducing greater choice and diversity to the system.
72. Deputy Brendan Smith asked the Minister for Education and Skills the guidelines in place in respect of substitution or replacement cover for local authority members who are also primary and post-primary school teachers, in view of the fact his Department's circulars state they are entitled to ten days leave per school year for local authority duties; and if he will make a statement on the matter. [44304/17]
View answerWhere a teacher in a primary or post primary school is an elected member of a local authority, paid absence of up to ten school days in a school year may be availed of in order to attend council meetings, but only where such meetings are held during school opening hours. Prior approval must be obtained from the Board of Management of the School, who, in approving such leave, must take into consideration the welfare and educational needs of the students. Substitute cover is not provided by my Department for such absences.
73. Deputy Alan Kelly asked the Minister for Education and Skills if he will provide a copy of Tipperary ETB audit committee minutes in each of the years 2013 to 2016 and to date in 2017. [44329/17]
View answerAudit committees in Education and Training Boards (ETBs) are established and operate in accordance with the Education and Training Boards Act 2013 and the framework for risk management, accountability, internal control and internal audit as set out in the 2015 Code of Governance for the ETBs.
The Code provides detailed terms of reference for audit committees including mission, role and function as well as procedures in relation to minutes. The procedures state that the minutes of the audit committee are to be kept securely and are not to be made available other than to members of the audit committee. Accordingly, it would not be appropriate for me to facilitate the request from the Deputy.
