Written Answers Nos. 106-118
106. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to encourage the banking sector to meet the requirements of small and medium-sized industry and the retail or commercial sector; and if he will make a statement on the matter. [45073/17]
View answerGovernment policy remains focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. In this regard the Government has developed a number of initiatives to ensure that the supply of credit in the market is sufficient to meet the existing and future needs of SMEs, including those in the retail and commercial sectors.
In line with Action 62 of the APJ 2017, officials from my Department collate and examine data from AIB and Bank of Ireland on a monthly basis, including data pertaining to the various sectors. Furthermore, my officials meet the banks on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment which assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.
In terms of monitoring requirements for all SMEs including the retail sector, my Department commissions biannual surveys to ascertain the demand for credit by SMEs. This survey series, most recently conducted by Behaviour & Attitudes on behalf of my Department, is the most comprehensive survey of SME credit demand in Ireland, covering 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, are included. The survey covers demand for credit from both bank and non-bank sources.
I would draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey, covering the period October 2016 to March 2017, which can be found at
http://www.finance.gov.ie/sme-credit-demand-surveys-archive/.
The SME State Bodies Group, chaired by my Department, provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance. As the Deputy will be aware, the Action Plan for Jobs over the past number of years has set out a range of commitments to ensure viable SMEs can access appropriate finance at a reasonable cost from both bank and non-bank sources. These Government policies have supported year on year increases in new lending to SMEs, as measured by the Central Bank.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. I can assure the Deputy that my Department, working with other relevant Departments, Bodies and Agencies, such as the Credit Review Office, will continue to monitor the availability of both bank and non-bank credit so as to ensure that Irish SMEs have sufficient access to finance.
107. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which overdraft facilities continue to be restored to the business and farming sectors with particular reference to the need to ensure the availability of adequate resources to facilitate ongoing economic performance; and if he will make a statement on the matter. [45074/17]
View answerThe Deputy will be aware that in my role as Minister for Finance I have no direct function in the relationship between the banks and their customers. I have no statutory function in relation to the banking decisions made by individual lending institutions at any particular time and these are taken by the board and management of the relevant institution. This includes decisions in relation to products as determined by the banks.
All viable businesses operating in Ireland should have the opportunity to access sufficient finance to meet their enterprise needs in a manner that supports growth and employment in the economy. As the Deputy will be aware, Chapter 3.5 (Ensuring Finance for Growth) of the Action Plan for Jobs 2017 (APJ) sets out a range of commitments to ensure viable SMEs can access appropriate finance at a reasonable cost from both bank and non-bank sources.
In line with Action 62 of the APJ, officials from my Department and the Credit Review Office continue to collate and examine data from AIB and Bank of Ireland on a monthly basis, including data pertaining to overdraft facilitates. Furthermore, my officials meet the banks on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment which assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.
In relation to the restoration of overdraft facilities, both AIB and Bank of Ireland have seen yearly decreases in overdraft sanctions since 2014. This is also reflected in the Department of Finance SME Credit Demand Survey, SMEs' trading performances have steadily improved with a greater number of SMEs now using retained profits to meet working capital needs rather than overdraft facilities. This is a positive development as relying on an overdraft facility for working capital is an expensive source of finance. Further results from the survey can be found at
http://www.finance.gov.ie/sme-credit-demand-surveys-archive/.
108. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department can address the situation arising from potential large-scale repossession of family homes directly or indirectly through repossession of buy-to-let properties; and if he will make a statement on the matter. [45075/17]
View answer111. Deputy Bernard J. Durkan asked the Minister for Finance if family home repossessions over the past 12 months have been in accordance with the Central Bank regulations with particular reference to the impact such repossessions have on the housing crisis and the activities of unregulated third parties that have purchased distressed loan books; and if he will make a statement on the matter. [45078/17]
View answerI propose to take Questions Nos. 108 and 111 together.
The Consumer Protection (Regulation of Credit Servicing) Act 2015 (“the 2015 Act”) was introduced in July 2015 to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. Credit Servicing Firms are typically firms that manage or administer credit agreements such as mortgages or other loans on behalf of unregulated entities.
Under the 2015 Act, if the firm who bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’. Loans can be sold by regulated entities to entities that are not regulated by the Central Bank of Ireland (the Central Bank).
Credit servicing firms must act in accordance with the requirements of Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections that they had prior to the sale, including under the various Statutory Codes of Conduct issued by the Central Bank.
The Code of Conduct on Mortgage Arrears (CCMA) is a key part of the Central Bank’s Consumer Protection framework. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms with each borrower by reference to that borrower’s individual circumstances, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner by reference to that’s borrower’s individual circumstances.
Regulated entities, including credit servicing firms servicing loans on behalf of unregulated loan owners, are all required to comply with the CCMA. The overriding objective of the CCMA is to ensure the fair and transparent treatment of consumers in mortgage arrears or pre-arrears, and that due regard is had to the fact that each case of mortgage arrears is unique and needs to be considered on its own merits. The CCMA recognises that it is in the interests of borrowers and regulated firms to address financial difficulties as speedily, effectively and sympathetically as circumstances allow. It sets out the mortgage arrears resolution process (MARP), a four-step process that regulated entities must follow:
Step 1: Communicate with borrower;
Step 2: Gather financial information;
Step 3: Assess the borrower’s circumstances; and
Step 4: Propose a resolution
Each regulated entity must consider the borrower’s situation in the context of the solutions they provide, which may differ from firm to firm. The CCMA includes requirements that arrangements be sustainable and based on a full assessment of the individual circumstances of the borrower and that repossession be used only as a last resort. The CCMA does not prescribe the solution which must be offered. A regulated entity may only commence legal proceedings for repossession where the firm has made every reasonable effort under the CCMA to agree an alternative repayment arrangement with the borrower or his/her nominated representative, and the specific timeframes set out in the CCMA have been adhered to or the borrower has been classified as not co-operating.
Details on the protections and options available to a borrower under Irish personal insolvency legislation can be found at isi.gov.ie, should this be of relevance. This aspect of the framework of protections for individuals (including mortgage borrowers) is overseen by the Insolvency Service of Ireland, not the Central Bank.
In relation to addressing the situation arising from potential large scale repossessions of family homes directly or indirectly through repossession of buy to let properties, the position is that I am unable to interfere in the commercial decisions of any financial institution. However, the Government attaches great importance to the resolution of mortgage arrears and wants to keep families in their homes and avoid repossessions insofar as possible.
Across state agencies, there are numerous bodies and processes in place to assist those in mortgage arrears in the hope of avoiding repossession. Most recently, the Abhaile service has been established and offers help to borrowers in arrears to find the best solutions and keep them, if possible, in their own homes. This is assisting borrowers, particularly those in longer term arrears. A dedicated adviser will work with borrowers in arrears and their lender to find the best solution for them. Borrowers can get free advice from an expert financial adviser who can help them to work through their financial situation. An Expert adviser could be from MABS or a Personal Insolvency Practitioner (PIP) or an accountant. Borrowers may also need legal advice and under Abhaile they can have a free meeting with a solicitor. If called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. A MABS staff member will also be present at court to help them.
A Helpline is available Monday to Friday and a face-to-face service which is completely free, confidential and independent is also available in more than 60 MABS locations nationwide.
Finally, I refer you to the latest Central Bank publication for Residential Mortgage Arrears and Repossessions Statistics: Q2 2017 which can be found at the following link:
https://centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears/residential-mortgage-arrears-and-repossessions-statistics-june-2017.pdf?sfvrsn=7.
This shows that further progress is being made in addressing the mortgage arrears issue. The number of PDH mortgage accounts in arrears continued to fall in Q2 2017, marking the 16th consecutive quarterly decline. A total of 73,706 (10%) of accounts were in arrears at end-Q2, a decline of 3.6% relative to Q1 and a decline of 48% since Q2 of 2013. All maturity categories of arrears declined in Q2 2017. There are very positive signs in relation to the amount of accounts which have been restructured, 120,398 by end June 2017 and of these restructured accounts, 87% are were deemed to be meeting the terms of their restructuring arrangement.
109. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that first-time house buyers or the purchasers of a family home are not priced out of the market in the future; and if he will make a statement on the matter. [45076/17]
View answerAs the Deputy will be aware, overall responsibility for housing policy rests in the first instance with the Minister for Housing, Planning, Community and Local Government. The Government is aware of the significant issues facing the housing market and it is committed to restoring the housing market to a sustainable equilibrium by seeking to increase the supply of housing to meet growing demand.
In order to deliver on an ambitious target of building 25,000 new homes by 2020, Rebuilding Ireland – the Action Plan for Housing and Homelessness, adopts a whole of government response with 84 actionable measures across five key pillars. The Government has been engaged in a review of Rebuilding Ireland, in order to assess the impact of the policies contained within the Action Plan, and to consider additional actions to address issues with supply in the housing market. The measures set out in the Action Plan and its review should help to stimulate supply by streamlining the planning system, removing infrastructure blockages and supporting the delivery of affordable housing for both first time buyers and purchasers of family homes.
The Help-to-Buy initiative, which was retained in Budget 2018, should help alleviate some of the specific challenges faced by first time buyers in accessing the housing market. The initiative has been designed to provide immediate and targeted support for first time buyers in meeting their deposit requirements and encouraging the construction of new housing units whilst the structural measures announced in the Action Plan are being rolled out. My Department commissioned Indecon, an economic consultancy, to complete an independent impact assessment of the Help-to-Buy initiative in March. The report was published with all the Budget 2018 documents and found that, to date, there has been no identifiable impact of the Help-to-Buy initiative on house prices. It further found that the initiative has enhanced affordability for first time buyers and that it has reduced the number of years required for purchasers to save a deposit for new homes.
Budget 2018 contained a number of other initiatives that will assist in lowering the cost of building homes and increasing affordability, including for first time buyers. Such measures include the establishment of Home Building Finance Ireland, which has €750 million to lend to home builders and an additional €75 million allocation for the Local Infrastructure Housing Activation Fund.
110. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which variable mortgage interest rate charges can be brought into line with those applicable in adjoining jurisdictions, eurozone and otherwise; and if he will make a statement on the matter. [45077/17]
View answerThere are a number of factors, such as differences in national legal and housing systems, cultural preferences, the proximity of lenders to borrowers, which will impact on the levels of interest rates in different countries. More directly, credit and market conditions, mortgage default rates and the funding of mortgage credit will also be relevant factors.
However, there have been some developments which seek to promote a more harmonised market for credit across the EU. In particular, the 2014 Mortgage Credit Directive, which has now been transposed into Irish law by the European Union (Consumer Mortgage Credit Agreements) Regulations 2016, seeks to develop a more harmonised, efficient and competitive internal market for the provision of residential mortgages to consumer borrowers and this should help to promote the closer integration of EU mortgage markets over time.
In terms of the national context, the issue of the level of variable mortgage rates is an important one for this Government and it is committed to reducing the cost of secured mortgage lending and promoting competition in the supply of mortgage finance. To that end, the Competition and Consumer Protection Commission (CCPC) has recently produced a report which sets out options for consideration to help improve the level of competition and general efficiency of the market. Additionally, the Central Bank has recently carried out research which showed the scope for borrowers to save money by switching mortgages.
Following on from this, and building on the 2016 addendum to the Consumer Protection Code in relation to standard variable rate mortgage holders, last August the Central Bank published a consultation paper proposing new measures which would enhance the framework of protections for variable rate mortgage holders and in particular to require lenders to, inter alia, better inform consumers about other available mortgage options that could save them money, to help them compare their existing mortgage to other mortgage options and to provide consumers with standardised switching information. A copy of the Consultation Paper is available on the Central Bank’s website and the consultation process will be open for comment until 1 November 2017.
In overall terms, the Government is of the opinion that the development of a healthy banking system, which is one which delivers increased competition, which is in a position to provide finance to credit worthy customers and which is also resilient to economic and financial market shocks, is the best way to ensure that retail lending rates are driven down in a sustainable way for the market as a whole but without giving rise to potentially undesirable consequences for the provision of new mortgage lending.
112. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform the consultations he plans for the national planning framework and the national investment plan. [44730/17]
View answerIn relation to the National Planning Framework (NPF), the Department of Housing, Planning and Local Government undertook a broad public consultation earlier this year through a national campaign asking for views and opinions about making a plan for Ireland. I understand that thousands of submissions were received, reviewed and considered before a draft NPF was drawn up. The draft entitled Ireland 2040- Our Plan is now available, together with a number of environmental reports and other supporting information on the website (www.npf.ie). I am advised by my colleague the Minister for Housing, Planning and Local Government that submissions on the draft can be made from 27th September until 12 Noon on Friday November 3rd.
In relation to the National Investment Plan (2018-2027), a consultation was conducted earlier this year between 31 March and 30 April as part of the Mid-Term Review of the Capital Plan by the Department of Public Expenditure and Reform. While the public consultation was focused on the allocation of available capital resources over the period out to 2021, views and evidence were also sought on infrastructure investment over the longer 10 year period.
Further details on that consultation, along with the published submissions which were received, can be found on the Department of Public Expenditure and Reform's website
www.per.gov.ie/en/capital-investment-plan-2016-2021/.
The views and opinions expressed in that consultation informed the findings of the Mid-Term Review of the Capital Plan, published by the Department of Public Expenditure and Reform on 14 September. Furthermore, it is currently planned that a consultative forum will be held by the Department of Public Expenditure and Reform in November with key stakeholders and experts including those that responded to the public consultation on the review of the Capital Plan to discuss the findings and recommendations of the Review.
113. Deputy Brendan Howlin asked the Minister for Public Expenditure and Reform the full estimated year cost in 2019 of spending measures announced in budget 2018; the impact on the fiscal space available for budget 2019; and if he will make a statement on the matter. [44807/17]
View answerTable 7 on page 38 of Expenditure Report 2018 provides an estimate of €192 million in respect of the full-year impact of Budget 2018 current expenditure measures in the areas of Social Protection, Education and Justice. This has been reproduced in the following table.
|
# |
Additional Cost in 2019 (€millions) |
|
Social Protection |
110 |
|
Education |
42 |
|
Justice |
40 |
|
Total |
192 |
As these estimates relate to measures being implemented in 2018, they will be impacted by the actual cost and timing of implementation and consequently the detail in respect of these carryover costs, and any carryover costs that may arise in other areas, will be reassessed in terms of their implications for the overall expenditure and fiscal position in 2019 as Budget plans are implemented in 2018. As set out in the Expenditure Report, these costs would need to be met from the unallocated resources in 2019, set out in Table 6 on page 37 of the Expenditure Report, or from savings or reprioritisation. Also as outlined in that Table, there is an additional pay cost in 2019 of €370 million arising from the Public Service Stability Agreement 2018 - 2020.
114. Deputy Shane Cassells asked the Minister for Public Expenditure and Reform the amount of non-voted expenditure allocated for elections in each of the years 2014 to 2017; the election postal charges under the Post and Telegraph Act 1983, per annum from 2014 to 2018; the expected allocation in 2018; the basis for such calculations; and if he will make a statement on the matter. [45017/17]
View answerThe cost of each election, including postal costs for each of the years 2014 to 2016 under the Post and Telegraphs Act 1983 as amended by the Communications Regulation (Postal Services) Act 2011 are set out in the attached table. There was no election event in 2017.
The Government agreed an indicative timetable on 26 September 2017 for referendums to be held in 2018. These include a referendum on the Eighth Amendment of the Constitution to be held in May or June, with a further two referendums on blasphemy and a Woman’s Life within the Home to be held alongside the Presidential election in October 2018 (in the event that there is more than one candidate).
I have included in the attached schedule for the information of the Deputy the combined cost of the 2011 Presidential Election (which includes the cost of the two Referendums and a Bye Election held on the same day) and the costs of the 2012 Children's Referendum. While no two election events would be the same and some costs would have increased in the meantime, this 2011 cost could be taken as indicative of the potential scale of the costs of a 2018 Presidential Election combined with referendums on the same day, while the 2012 referendum cost could be taken as indicative of a stand alone referendum.
|
2014 |
2015 |
2016 |
|||
|
1 |
European & Local Elections (includes 2 Bye Elections Dublin West & Longford West Meath) as follows: |
€24,573,804.70 |
|||
|
Conduct of the Election |
€12,719,558.49 |
||||
|
Candidate Expenses |
€1,084,026.90 |
||||
|
Postal Costs |
€10,770,219.31 |
||||
|
2 |
2 Bye Elections (Dublin Sth West & Leitrim Roscommon) as follows: |
€1,111,323.42 |
|||
|
Conduct of the Election |
527,519.90 |
||||
|
Candidate Expenses |
€104,400 |
||||
|
Postal costs |
479,403.52 |
||||
|
3 |
Seanad Panel Members as follows: |
€7,179.19 |
|||
|
Conduct of the Election |
€4,503.19 |
||||
|
Postal Costs |
€2,676.00 |
||||
|
4 |
Referendums: Marriage Equality & Age of Eligibility for Election to Office of President (includes Carlow Kilkenny Bye Election) as follows: |
€14,891,512.46 |
|||
|
Conduct of the Election |
€10,835,218.27 |
||||
|
Postal costs |
€1,841,294.19 |
||||
|
Referendum Commission Costs |
€2,215,000.00 |
||||
|
5 |
Seanad Bye-Election November, 2015 as follows: |
€6,985.36 |
|||
|
Conduct of the Election |
€4,344.06 |
||||
|
Postal Costs |
€2,641.30 |
||||
|
6 |
General Election (includes Seanad) |
€30,380,323.44 |
|||
|
Conduct of the Election |
€13,492,420.89 |
||||
|
Candidate Expenses |
€2,727,969.24 |
||||
|
Postal costs |
€14,159,933.31 |
||||
|
7 |
Cost of 2011 Presidential with 2 Refs & Dublin West Bye Election |
€30,051,569.60 |
|||
|
Conduct of the Election |
€17,411,260.64 |
||||
|
Candidate Expenses |
€600,000.00 |
||||
|
Postal Costs |
€12,040,308.96 |
||||
|
2012 Children's Referendum as follows: |
€12,835,735.63 |
||||
|
Conduct of the Election |
€9,639,552.77 |
||||
|
Postal Costs |
€1,496,182.86 |
||||
|
Referendum Commission Costs: |
€1,700,000.00 |
115. Deputy John McGuinness asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 69 of 10 October 2017, the cost of the apartment located at Kilkenny Castle. [44591/17]
View answerThe Apartment in question was provided as part of major restoration works carried out at Kilkenny Castle between 1997 and 2001.
The apartment constituted a very minor part of these works and it is extremely difficult at this remove to extract and identify precisely how much the apartment element cost.
The overall cost of the major works was approximately €5m.
116. Deputy Frank O'Rourke asked the Minister for Public Expenditure and Reform the quotas for employment of persons with a disability within the Civil Service; if these targets are met; and if he will make a statement on the matter. [44605/17]
View answerCompliance with Section 47 of the Disability Act 2005 requires that, unless there is a good reason for not doing so, more than 3% of staff employed in public bodies, for which the relevant Minister is responsible, are people with a disability.
As the Minister for Public Expenditure and Reform, I am the relevant Minister for staff employed in the Civil Service.
The National Disability Authority (NDA) has a statutory role in monitoring employment of people with disabilities in the public sector, arising from Part 5 of the Disability Act 2005.
In its latest Report on Compliance, the NDA reported that 4.5% of staff employed in government Departments reported a disability and that all Departments exceeded the 3% target for the fourth year in a row.
The Comprehensive Employment Strategy for People with Disabilities was launched in October, 2015 and is under the remit of the Minister for Justice and Equality. It sets out a ten-year approach that, amongst other things, will ensure that people with disabilities, who could and want to work, are supported and enabled to do so. As part of the Strategy, the public service employment target of people with disabilities will be increased incrementally from 3% to 6% by 2024.
117. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 84 of 10 October 2017, if the OPW retains the remaining percentage of income from moneys derived from rental space on Garda telecoms masts or if the funds are lodged to the central Exchequer fund once funds are lodged to the Department of Justice and Equality and the appointed site management agency; and if he will make a statement on the matter. [44951/17]
View answerThe remaining income from licence fees, under the telecommunications licences granted by the Commissioners of Public Works (OPW) in respect of Garda Masts, is surrendered to the Exchequer as part of Appropriations in Aid on the OPW Vote, after the deduction of expenses incurred as a result of the granting of the licences.
118. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of staff allocated to the Irish Government Economic and Evaluation Service in each of the years 2011 to 2016 and to date in 2017; the budget in each of the years 2011 to 2017; and if he will make a statement on the matter. [45012/17]
View answerThe Irish Government Economic and Evaluation Service (IGEES) is an integrated, cross-Government service that aims to support better policy formulation and implementation in the civil service through economic analysis and evaluation. It was established in 2012. As set out in its Medium Term Strategy out to 2019, the aim of the IGEES is to contribute to the better design and targeting of Government policy and better outcomes for citizens. It does this by building on existing analytical work and playing a lead role in policy analysis.
IGEES is not a stand-alone service. IGEES staff are part of each Department adding their skill set to the varied expertise working on policy analysis and formulation as directed by Departmental business plans. By operating as a cross Government service, IGEES supports and builds economic and evaluation capacity and consistency across the civil service.
The IGEES model involves units and roles embedded in each Government Department, and each Department meets the costs of those from within its existing resources. IGEES numbers across Government Departments have grown since 2012 combining new recruitment with the assignment of existing staff. IGEES numbers have increased from just over 30 in 2012, to over 50 in 2013, around 70 in 2014, around 80 in 2015, around 90 in 2016. At present, there are 120 persons active in IGEES roles (62 recruited through the IGEES recruitment stream and 58 from existing Departmental resources). In terms of the IGEES recruitment, the average annual intake for the period 2012-2017 was just below 20.
From 2012 to 2016, costs were almost entirely related to pay – for existing qualified economic and evaluation staff and for newly recruited economic and evaluation staff – and formed part of each Department’s overall pay allocation as presented in the Revised Estimates Volume. In 2017, a budget for the Irish Government Economic and Evaluation Service of €200,000 was included in Vote 11 Office of the Minister for Public Expenditure and Reform. The Secretary General of the Department of Public Expenditure and Reform has overall responsibility for IGEES. This budget is supporting the roll out of the IGEES Medium Term Strategy in building capacity through recruitment and learning and development, generating an increased level of high quality output, and providing greater input into and impact on the policy analysis process in the civil service.
