Written Answers Nos. 98-117
98. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which aid is distributed bilaterally or multilaterally to various locations throughout the globe; if he remains satisfied that Irish aid does not find its way to locations in which other jurisdictions only provide aid for trade; and if he will make a statement on the matter. [28345/18]
View answerThe Government is strongly committed to Ireland’s overseas assistance programme, and to its place at the heart of our foreign policy. Ireland’s assistance programme is sharply focused on delivering our goals of reducing poverty and hunger, promoting inclusive and sustainable growth and building more equitable and better systems of governance. My Department provides development assistance to over eighty of the world’s least developed countries, supporting their development needs and responding to emergencies and protracted crises with humanitarian assistance. We work through a wide range of partners and channels, including partner government systems, Irish and international Non-Governmental Organisations (NGOs) and missionary organisations, and UN and other multilateral agencies and organisations.
Funding for multilateral organisations is kept under regular review by my Department, to ensure that it is targeted effectively, and channeled through partners who can contribute most effectively to delivering agreed priorities. In this way, Ireland is playing a strong role in supporting the 2030 Agenda for Sustainable Development and in the achievement of the Sustainable Development Goals. Multilateral partnerships allow us to reach the poorest and most fragile countries and regions in the world, and deliver real results on the ground: also, through leveraging these partnerships we able to amplify Ireland’s advocacy on our priority issues.
Sub-Saharan Africa is our priority region, where we focus in particular on a number of countries. This engagement is at strategic level, in addition to support for their long-term development. These countries are Ethiopia, Tanzania, Uganda, Zambia, Malawi, Mozambique and Sierra Leone. Smaller more focused programs are delivered in countries and territories such as Zimbabwe, South Africa, Liberia and Kenya. We also have programmes in Vietnam and Palestine.
The total Bilateral ODA provided by my Department to ODA eligible countries in 2016 was €386 million, 53% of the total amount of Irish ODA. The total Multilateral ODA in 2016 was €337 million, 47% of the total. Some of this was channeled through other Departments. The 2017 figures are being finalised. The full list of ODA eligible countries is published annually by the OECD Development Assistance Committee.
A key principle is that Ireland’s official aid should remain untied - that is, not conditional on acquiring goods and services from Ireland. This is regularly remarked upon by the OECD Development Assistance Committee in their assessments of Ireland’s international cooperation.
99. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the steps that can be taken to ensure that the victims of various natural disasters, whether from storm, earthquake or disease, continue to receive international aid commensurate to their situation; and if he will make a statement on the matter. [28346/18]
View answerNatural disasters can spark off a new crisis or worsen an existing one. According to the UN, in 2016 445 million people were affected by disasters linked to natural hazards worldwide including floods, storms, earthquakes and drought; 8,000 people directly lost their lives; and immediate economic losses from major disaster events were estimated at almost $140 billion. Climate change, together with poverty and poor environmental management, means that an increasing number of countries, poor countries in particular, are becoming increasingly vulnerable to natural disasters.
A priority for Ireland in responding to humanitarian crises is ensuring that life-saving assistance reaches those most in need, as quickly as possible. Ireland works with our UN, EU, Red Cross and NGO partners to reach those in most urgent need of assistance when crises hit. For example, in response to the eruption of the Fuego Volcano in Guatemala on 3 June 2018, Ireland provided €75,000 to Plan International to assist with shelter for those affected. Similarly, in 2017, in response to flooding and mudslides in Sierra Leone, Ireland deployed emergency relief supplies via the Rapid Response Initiative to our partner NGOs to help people affected.
In addition, Ireland provides core support to the United Nations Office for Disaster Risk Reduction worth €0.5m to help them build capacity in Ireland’s key partner countries to prepare for and manage the impact of disasters.
Ireland remains committed to providing humanitarian assistance where it is needed most, working with partners who can ensure that such assistance is delivered in a coordinated and effective manner.
100. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the ten most sensitive recognised disaster areas globally to which the international community have promised or are delivering aid and which have received support as promised; and if he will make a statement on the matter. [28347/18]
View answerThe scale and number of humanitarian crises globally continues to increase. The UN estimates that 134.1 million people are now in need of urgent humanitarian assistance and protection, mainly as a result of conflict but also natural disaster. The annual Global Humanitarian Overview, published by the UN system last week details the current financial requirements to respond to humanitarian needs in 2018. It estimates that $25.4 billion is needed this year to respond effectively to urgent humanitarian needs.
The ten largest appeals set out in this UN document are:
|
Country |
Financial Requirements |
% of appeal funded |
People in Need |
|
Syria |
$3.51 B |
27.1% |
13.1 M |
|
Yemen |
$2.96 B |
51.0% |
22.2 M |
|
South Sudan |
$1.72 B |
39.1% |
7.0 M |
|
Democratic Republic of the Congo |
$1.68 B |
17.8% |
13.1 M |
|
Ethiopia |
$1.62 B |
14.6% |
7.9 M |
|
Somalia |
$1.54 B |
33.1% |
5.4 M |
|
Nigeria |
$1.05 B |
45.8% |
7.7 M |
|
Sudan |
$1.01 B |
28.3% |
7.1 M |
|
Iraq |
$568.7 M |
49.7% |
8.7 M |
|
Afghanistan |
$546.6 M |
28.4% |
5.5m |
In 2017, despite some not insignificant shortfalls, the international community provided record levels of funding and humanitarian assistance, reaching tens of millions of people in need, more than ever before, saving millions of lives.
Ireland’s humanitarian assistance prioritises the most vulnerable and hard to reach people at risk from, or experiencing, disasters and emergencies. Ireland provided humanitarian assistance to each of these top ten appeals in 2017, and plans to continue doing so in 2018. In total, Irish humanitarian funding amounted to some €180 million in 2017 and a similar level of assistance is envisaged in 2018.
Humanitarian crises worldwide are monitored, with decisions on funding informed by an assessment of need which prioritises the allocation of humanitarian resources.
In partnership with the UN, EU, Red Cross and NGOs, every day Ireland helps save lives and rebuild the livelihoods of those who have endured disaster and crisis. For example, in 2017, humanitarian funding to Irish NGOs helped to save and improve the lives of over 1.5 million people affected by emergencies in 28 countries.
Ireland will continue to closely monitor humanitarian need worldwide and provide its humanitarian assistance on the basis of need to ensure that assistance reaches those who need it most.
101. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the degree to which the EU or UN continue to address the issues of trafficking throughout the globe with particular reference to women and children and the use of child soldiers; and if he will make a statement on the matter. [28348/18]
View answerHuman trafficking is abhorrent abuse of people, particularly those most vulnerable, and I condemn it in its entirety. The Government of Ireland recognises that trafficking in human beings undermines the fundamental principles of human rights law and that it can only be tackled through global cooperation, partnership and a victim centered approach. At EU level, human trafficking is prohibited by Article 5.3 of the EU Charter of Fundamental Human Rights. EU Directive 2001/36/EU on preventing and combating trafficking in human beings and protecting its victims was agreed in 2011 and has been transposed into domestic law by all EU Member States, including Ireland. Article 20 of the Directive outlines the role of the EU Anti-Trafficking Coordinator who is responsible for improving coordination and coherence among EU institutions, EU agencies, Member States and international actors in addressing human trafficking. She is also responsible for developing existing and new EU policies to address human trafficking. In 2017, the EU adopted a new Communication to address human trafficking and committed to implement a new set of priorities, building on the 2012-2016 EU Strategy towards the Eradication of Trafficking in Human Beings. The Communication’s cross cutting priorities aim to provide a stronger response to trafficking though coordinated and consolidated actions by relevant authorities and organisations. The two cross cutting priorities are: the establishment of a sound knowledge base – understanding the nature, scale and costs of trafficking is key to ensuring appropriate action; and supporting anti-trafficking priorities in the EU and non-EU countries.
At an international level, the United Nations continues to lead on combating human trafficking across the globe. The UN Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children was the first international treaty aimed at comprehensively defining and addressing human trafficking and was ratified by Ireland in 2010. The Protocol has a threefold purpose: to prevent and combat trafficking in persons, paying particular attention to women and children; to protect and assist victims of trafficking; and to promote cooperation among States Parties in order to meet those objectives.
The Global Plan of Action to Combat Trafficking in Persons was adopted by the UN General Assembly in 2010. It includes concrete actions to prevent trafficking in persons, protect and assist victims, prosecute related crimes and strengthen partnerships among Governments, civil society organisations and the private sector, including the media. The Action Plan provided for the establishment of a United Nations voluntary trust fund for victims of trafficking in persons, especially women and children, managed by United Nations Office on Drugs and Crime.
During the 72nd session of the United Nations General Assembly in 2017, a high level meeting took place on 27 and 28 September to review progress on implementation of the Plan. The General Assembly adopted, by consensus, a political declaration aimed at combating human trafficking with member states, including Ireland, reaffirming their commitment to the Plan.
The Office of the High Commissioner for Human Rights has also worked towards integrating a human rights based approach into the fight against human trafficking. The Office of the High Commissioner for Human Rights has developed Recommended Principles and Guidelines on Human Rights and Human Trafficking that aim to assist those involved in anti-trafficking to integrate a human rights based approach into their responses. The Human Rights Council also addresses human trafficking through resolutions that address the issue both directly and indirectly. For example, at the 37th session of the United National Human Rights Council in March of this year, the Council adopted a resolution on the rights of the child in humanitarian settings which specifically addressed issue of human trafficking of children. At the 35th session of the United Nations Human Rights Council in June 2017, the Council adopted a resolution on the protection of human rights of migrants which addressed, inter alia, victims of human trafficking. Both resolutions were cosponsored by Ireland. At the 32nd session of the United Nations Human Rights Council in June 2016, the Council adopted a resolution entitled Protecting Victims of Trafficking and People at Risk of Trafficking, Especially Women and Children in Conflict and Post-Conflict Situations, which was also cosponsored by Ireland.
Finally, among the special procedures of the Human Rights Council is the Special Rapporteur on trafficking in persons, especially women and children, who is mandated to take action on violations committed against trafficked persons; undertake country visits; and to submit annual reports on the activities of the mandate. Ireland has supported the mandate of the Special Rapporteur, most recently in 2017 through co-sponsorship of a resolution extending the mandate of the office for a further three years.
102. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the structures operational in the context of a peace process in the Arab-Israeli situation with particular reference to the need to establish a respected body capable of dealing with complaints from both sides; and if he will make a statement on the matter. [28349/18]
View answer103. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade if efforts are being made by the international community to encourage the restoration of a peace process in the Middle East with a view to addressing the concerns of the Palestinian authorities, Hamas and Fatah, pursuit of the two state solution and the need to establish dialogue with the Israeli authorities rather than allow a war to develop which will have serious consequences for all involved; and if he will make a statement on the matter. [28350/18]
View answerI propose to take Questions Nos. 102 and 103 together.
The Government’s policy on the Middle East has always been based on the belief that the two sides would need a degree of international assistance and pressure to reach a peace agreement. This is not dissimilar from our own peace process.
The structures operational in the context of the Middle East Peace Process are numerous and varied. From an international perspective there are a number of special envoys to the peace process, including a UN special coordinator, an EU Special Representative, a US special envoy, a Chinese special envoy, to name but a few. The Office of the Quartet also works as a bridge between the parties supporting Palestinian economic and institutional development and empowerment, a key factor in achieving a two-state solution. Despite the stagnation in the political process and worsening developments on the ground in recent months, there are a number of areas where the Israelis and Palestinians continue to cooperate, including on security.
For over a year the United States administration has been actively exploring the possibilities for re-launching the process to reach a comprehensive peace agreement. This is welcome and I have met with and spoken to the US team on a number of occasions to encourage their work, and to underline the key parameters for an agreement which the EU has long espoused.
I have urged the EU to encourage and engage with an appropriate US initiative. But I have also emphasized the need for the EU to continue our own work to help preserve and create the political and physical space in which the two-state solution can be achieved.
We expect to see a proposal from the US team in the coming months. In that regard it is important that any parameters which are advanced actually provide a basis on which both parties could agree. It remains to be seen what the US peace plan will propose.
I understand the concerns of the Palestinian leadership in relation to a US proposal. And I have made clear to the US that no peace plan can work without Palestinian acceptance. In that regard I have also urged President Abbas to keep an open mind on the US plans.
I am not convinced of the need to establish another body at this time capable of dealing with complaints from both sides. What is needed now is the resumption of direct talks, which are ultimately the only way to achieve peace. I am hopeful that the US peace plan, when it emerges, will provide a fair and workable basis for such talks to resume.
104. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which the EU can continue to provide a positive influence in the Western Balkans with a view to its stabilisation in the short, medium and long term; and if he will make a statement on the matter. [28351/18]
View answerThe EU remains dedicated to supporting the European future of the Western Balkans region. In the Council Conclusions on Enlargement which were agreed on Tuesday 26th June, the EU reaffirmed its commitment to enlargement and stated that it continues to represent a strategic investment in peace, democracy, prosperity, security and stability in Europe. The Conclusions also stated that the EU is determined to strengthen and intensify its engagement at all levels to support the region's political, economic and social transformation, including through increased assistance, based on tangible progress on the rule of law, as well as on socio-economic reforms, by the Western Balkans.There is a recognition that this is not only a strategic investment in Europe's security and prosperity, but that it can also contribute greatly to the long term stability of formerly war-torn areas in that it helps create a political environment conducive to bilateral issues being resolved, as we have witnessed recently in the agreement between Athens and Skopje in regard to the name-issue. As a demonstration of the EU’s commitment, the European Commission recently adopted a strategy for ‘A credible enlargement perspective for and enhanced EU engagement with the Western Balkans ’. In this Strategy, the Commission sets out clearly the actions that it will implement over in the short to medium term to boost the transformation efforts in the Western Balkans in areas of mutual interest. These actions are set out across six flagship initiatives which range from strengthening the rule of law, reinforcing cooperation on security and migration and expanding the EU Energy Union to the Western Balkans, to lowering roaming charges and rolling out broadband in the region. In addition, the Strategy underlines the need for the EU to be prepared to welcome new members on the condition they have met the rigorous criteria for doing so.
It should also be noted that the Commission proposal for the new Instrument for Pre-Accession Assistance fund (IPA III) for the 2021-2027 period, envisages a 13% increase (to €14.5 billion) compared to current funding, and also seeks to make this fund more strategic by clearly anchoring it in the context of the Western Balkans Strategy.
Over the longer-term, there is a recognition in the EU that enlargement is a geostrategic investment in a stable, strong and united Europe based on common values and that a credible accession perspective is the key driver of transformation in the region and thus enhances our collective integration, security, prosperity and social well-being.
105. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the degree to which Ukraine, Georgia and Armenia continue to be positively supported by the EU; and if he will make a statement on the matter. [28352/18]
View answerThe Eastern Partnership Initiative provides a framework for cooperation between the EU and six countries in the EU’s Eastern Neighbourhood, including Ukraine, Georgia and Armenia. The aims of the Eastern Partnership are to promote peace and stability in the region and to enhance economic and political integration between the participating countries and the EU. The model of cooperation with each of the participating states has been tailored to meet their needs and priorities and those of the EU. At the fifth Eastern Partnership Summit in Brussels in November 2017 a revised Eastern Partnership multilateral architecture was adopted to contribute to the goals of the partnership particularly by supporting the implementation of the “20 Deliverables for 2020" which sets the future priorities for the initiative. This roadmap identifies a range of short and long-term milestones aimed at developing a stronger economy, governance, connectivity and society to make tangible and pragmatic improvements to the lives of citizens in partner countries. The Eastern Partnership is viewed as an important tool for promoting peace and stability in the region, in the context of an unpredictable Russia and the conflict in Ukraine. While Ireland is aware of the wider geopolitical considerations at play in the region, we have sought to emphasise the importance of ensuring that the EU’s values continue to guide our approach and that the Eastern Partnership continues to incentivise reform and progress.
The EU is committed to assisting Ukraine in delivering its ambitious and wide-ranging programme of reform and has provided unprecedented levels of support. This assistance includes loans, budget support, humanitarian aid, and technical assistance as well as important trade preferences, granted under the Deep and Comprehensive Free Trade Agreement which came into force in 2016. In addition, the EU is helping to reform the civilian security sector through its Advisory Mission to Ukraine.
The EU continues to support efforts by the OSCE to secure full implementation of the Minsk peace agreements, which provide the basis for a comprehensive settlement of the four year conflict in eastern Ukraine. On a visit to Ukraine in March, EU High Representative Federica Mogherini reaffirmed the EU’s unwavering support for Ukraine’s independence, sovereignty and territorial integrity and called on all parties to the conflict to support the vital work of international humanitarian organisations in meeting the needs of the local populations living in close proximity to the contact line as well as the large numbers of Internally Displaced Persons.
As with Ukraine, the EU remains committed to its political association and economic integration with Georgia and the successful implementation of the Association Agreement, including its Deep and Comprehensive Free Trade Area. The EU has praised Georgia's reform efforts while underlining the need to ensure sustainability of the changes which have already taken place including on democratic development and fundamental freedoms, on constitutional and parliamentary reform, and anti-corruption reforms.
The EU also fully supports Georgia's territorial integrity within its internationally recognised borders. The appointment in November 2017 of a new EU Special Representative for the South Caucasus and the crisis in Georgia, as well as the EU Monitoring Mission are visible and substantial signs of the Union's commitment to helping Georgia address its security challenges.
The European Union continues to have positive relations with Armenia, which receives considerable funding from the EU, with up to €170 million allocated for the period 2014-2017. This was focused on supporting private sector development and driving reforms in the areas of public administration and justice. In the margins of the 2017 Eastern Partnership Summit, Armenia signed a Comprehensive and Enhanced Partnership Agreement with the EU which facilitates political, economic and sectoral cooperation. By intensifying political dialogue and improving cooperation in a broad range of areas, the Agreement lays the foundations for more effective engagement with Armenia.
106. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the extent to which he can positively influence the international situation now leading to a multiplicity of trade wars which will negatively affect persons particularly in smaller countries; and if he will make a statement on the matter. [28353/18]
View answer107. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the degree to which the international community remains alert to the dangers of trade wars which can result in severe hardship and starvation; and if he will make a statement on the matter. [28354/18]
View answerI propose to take Questions Nos. 106 and 107 together.
The Government regards the question of possible disruptions to international trading relationships as a matter of concern and is working with its EU partners to promote Ireland’s interests. The Minister for Business, Enterprise and Innovation has lead responsibility for international trade negotiations.
108. Deputy John Brady asked the Tánaiste and Minister for Foreign Affairs and Trade if e-car charging points are provided at his Department's buildings in Dublin or in other locations; and if he will make a statement on the matter. [28396/18]
View answerE-Car charging points are not provided at my Department’s buildings in Dublin or in other locations.
109. Deputy Kevin O'Keeffe asked the Minister for Finance his plans to enable a retired person to claim a tax credit for their spouse that is not receiving a pension in their own right. [28097/18]
View answerThe State pension, including an increase for a qualifying adult dependent, is chargeable to income tax. Where an individual is entitled to the State pension and such pension is increased by virtue of that individual having a qualifying adult dependant, it remains one pension for tax purposes.
This position was not changed by Finance (No.2) Act 2013, which inserted Section 126(2B) into the Taxes Consolidation Act 1997 in order to re-affirm the position that any such increase is treated as the income of the person who qualifies for the pension. Entitlement to the State pension and any associated adult dependant allowance is based on PRSI contributions made by an individual and it is the choice of the individual pensioner whether to claim an increase for an adult dependant. The relevant income is therefore classed as that individual’s income solely, notwithstanding the fact that the dependant element of the pension may be paid directly to the qualifying dependant.
With regard to the taxation of the State pension in general, I would note that all social welfare payments are exempt from USC. Furthermore, a pensioner with an adult dependent that is solely in receipt of the State Contributory Pension, payable at the maximum rate, would in fact have no liability to income tax or USC at all, as the available income tax credits, including the Age Credit available to individuals aged 65 and over, would be sufficient to shelter the income from taxation.
There are therefore no plans to change this position. I would however note that the changes to the income tax system included in Budget 2018 mean that individuals who paid income tax and/or USC in 2017 will see a reduction in their tax bill in 2018 where incomes are equal. This is the fourth Budget in succession in which income tax reductions have been introduced, focussed particularly on low to middle-income earners.
110. Deputy Jonathan O'Brien asked the Minister for Finance if he will address a matter (details supplied) regarding a proposal. [28111/18]
View answerThe Deputy is asking what impact an increase in exchequer capital expenditure – in addition to existing National Development Plan (NDP) commitments - of c. €1.2 billion, €0.96 billion and €1.02 billion would have on fiscal space in 2019-2021 respectively.
Compared with the figures in Table 3 of the 2018 Summer Economic Statement, the increases would use fiscal space on the order of an additional c. €300 million in 2019, €540.3 million in 2020 and €794.8 million in 2021.
While the fiscal rules would be permit such additional spending, the additional money would have to be raised from an increase in taxation or borrowing, increasing the deficit.
The fiscal rules alone are not sufficient to ensure sensible fiscal policy – increasing borrowing as our economy approaches full employment would be clearly inappropriate. Sound budgetary policy respects the rules but must be guided by prudent judgement to avoid repeating the pro-cyclical mistakes of the past. The Government is committed to a budgetary policy that reduces, rather than increases, borrowing and supports steady and sustainable improvements in living standards.
111. Deputy Róisín Shortall asked the Minister for Finance if he will address matters raised by an organisation (details supplied); the steps he is taking to ensure greater urgency to the work being carried out by the Cost of Insurance Working Group; and if he will make a statement on the matter. [28144/18]
View answerI welcome the proactive role that the Alliance for Insurance Reform is taking in regard to the issue of the cost of insurance, particularly for businesses. I can assure the Deputy that my Department and I are both very conscious of the impact that the volatility in insurance prices in the last few years has had on consumers and businesses and am well aware of the issues raised by the Alliance. The Alliance has featured prominently in the media and put its viewpoints across at Joint Oireachtas Committee appearances, while its members have submitted a large number of representations to the Department, both directly and through TDs and Senators. Moreover, the Minister of State for Financial Services and Insurance, Mr. Michael D’Arcy TD, has formally met with the Alliance, and relevant issues were discussed to some level of detail.
With regard to the “10 asks” of the Alliance in particular, most of the issues which have been raised by it were considered in detail by the Cost of Insurance Working Group in the course of its work to produce its two reports namely, the Report on the Cost of Motor Insurance and the Report on the Cost of Employer and Public Liability Insurance. A number of these issues are in the process of being implemented, such as amending section 8 of the Civil Liability and Courts Act 2004 and establishing a procedure to ensure exaggerated and misleading claims are referred to the Gardaí for investigation and prosecution, if appropriate. There are other recommendations however, such as changing the approach to calculating the Book of Quantum, where we have clearly indicated to the Alliance that there are constitutional issues which need to be first considered, thus explaining why we have referred the matter to the Law Reform Commission for examination.
I have also pointed out to the Alliance that reinstating the “Blue Book” is a matter for the Central Bank of Ireland and as Minister, this is not an issue I have any influence over. Notwithstanding this, my Department remains open to maintaining constructive engagement with the Alliance on its key “asks”.
Finally, it is important that the Cost of Insurance Working Group continues to focus on implementing the recommendations of the two Reports as soon as possible so we can see what impact the completion of all the actions have on the cost of insurance before looking to introduce more changes. As I have stated previously, I believe that the cumulative effects of the implementation of all the recommendations should include increased stability in the pricing of insurance for consumers and businesses and improved availability of insurance generally.
112. Deputy Pearse Doherty asked the Minister for Finance his plans to regulate claims harvesting companies in the area of personal injuries; and if he will make a statement on the matter. [28148/18]
View answerAllegations of companies engaging in “claims harvesting” practices were brought up during the consultation process for the Cost of Insurance Working Group’s Report on the Cost of Employer and Public Liability Insurance. The Working Group in turn put some of the points raised to the Law Society of Ireland. The Law Society stated that it actively enforces the relevant regulations in this area, such as the Solicitors (Advertising) Regulations 2002, which prohibit solicitors’ advertisements offering inducements to make personal injuries claims, and Section 62 of the Solicitors Act 1954, which prohibits solicitors from rewarding or agreeing to reward unqualified persons for the introduction of legal business. For example, the Law Society informed the Working Group that between 2014 and 2017, 14 “claims harvesting” websites were taken down as a result of its investigations, and the Society has instituted High Court proceedings against non-solicitors relating to two of the leading “claims harvesting” websites.
However, I am conscious that, notwithstanding the Law Society’s work in this regard, there is still something of a “grey area” in relation to the regulation of “claims harvesting” companies. As a result, through the Cost of Insurance Working Group, my officials are continuing to examine the matter and are in the process of seeking to arrange a meeting with representatives from the Department of Justice and Equality, the Personal Injuries Assessment Board and the Law Society of Ireland in order to learn more about the extent of the problem within an Irish context.
113. Deputy Tom Neville asked the Minister for Finance his views on a matter (details supplied) regarding camper van insurance; and if he will make a statement on the matter. [28150/18]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles.
In making their individual decisions on whether to offer cover and what terms to apply, insurers will use a combination of rating factors, which include how the vehicle is used and the type of vehicle, as well as the age of the vehicle, the age of the driver, the relevant claims record and driving experience, and the number of drivers. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to particular categories, different insurance companies will have different views.
However, it is acknowledged that pricing in the motor insurance sector has been subject to a lot of volatility in recent years, and this was the main impetus for the establishment of the Cost of Insurance Working Group. Its Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, set out within an Action Plan.
Work is ongoing on the implementation of the recommendations by the relevant Government Departments and Agencies and there is a commitment within the Report that the Working Group will prepare quarterly updates on its progress. The fifth such update was published on 11 May and shows that of the 50 separate deadlines set to date within the Action Plan, 40 have been met. Substantial work has also been undertaken in respect of the nine action points categorised as “ongoing”. Both the Report and the quarterly updates are available on the Department’s website, within “The Cost of Insurance Working Group” sub-section of the main “Insurance” section.
It should be noted that the most recent CSO data (for May 2018) indicates that private motor insurance premiums have decreased by 19% since peaking in July 2016. While the CSO statistics indicate a greater degree of stability on an overall basis, these figures represent a broad average and therefore I appreciate many people may still be seeing increases. However, I am hopeful that the improved stability in pricing will be maintained and that premiums should continue to fall from the very high levels of mid-2016. In addition, with the full implementation of the Motor Report, I believe that Ireland should be more attractive to new entrants thus increasing capacity as well as competition which should have a positive impact in niche areas such as motor insurance for camper vans and musicians.
Finally, as the Deputy may be aware, if a consumer is unable to secure a quotation on the open market, he or she may be in a position to avail of the Declined Cases Agreement (DCA) process. Under the terms of the DCA, which is adhered to by all motor insurers in Ireland, the insurance market will not refuse to provide insurance to an individual seeking insurance if the person has approached at least three insurers and has not been able to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website, while more generally, Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: feedback@insuranceireland.eu or declined@insuranceireland.eu or 01-6761914.
114. Deputy Jonathan O'Brien asked the Minister for Finance if the elements of spending commitments under sections (details supplied) of the summer economic statement will be broken down in each of the years 2019 to 2021. [28162/18]
View answerThe following is a breakdown of ‘pre-committed fiscal space for expenditure’ in Table 3 of the Summer Economic Statement:
|
€ billions |
2019 |
2020 |
2021 |
|
Demographics |
0.4 |
0.4 |
0.5 |
|
Public Service Stability Agreement |
0.4 |
0.3 |
0.2 |
|
Carryover of Budget 2018 measures |
0.3 |
0.0 |
0.0 |
|
Capital expenditure* |
1.0 |
1.0 |
1.1 |
|
Pre-committed Expenditure |
2.1 |
1.7 |
1.8 |
*This is the amount in fiscal space terms allowing for capital smoothing
The following is a breakdown of ‘other’ in Table 3 of the Summer Economic Statement:
|
€ billions |
2019 |
2020 |
2021 |
|
Resources available for allocation |
0.8 |
1.3 |
1.3 |
|
Other non-voted and general government movements |
0.2 |
-0.7 |
0.9 |
|
Other |
1.0 |
0.6 |
2.2 |
As I outlined in the Summer Economic Statement 2018, the concept of fiscal space is no longer an appropriate one for Ireland. Budgetary policy will be formulated on the basis of what is right for the economy at this stage in the cycle and not by rules that would increase borrowing.
115. Deputy Jack Chambers asked the Minister for Finance his plans to introduce tax relief on union subscriptions; the estimated amount such an initiative would cost; and if he will make a statement on the matter. [28239/18]
View answerA review of the appropriate treatment for tax purposes of trade union subscriptions and professional body fees was carried out by my Department in 2016 and included in the 2016 report on tax expenditures published on Budget day 2016. The review may be found at the following link:
(http://www.budget.gov.ie/Budgets/2017/Documents/Tax_Expenditures_Report%202016_final.pdf)
The review concluded that:
"...analysis of the scheme using the principles laid down by the Department’s Tax Expenditure Guidelines shows that it fails to reach the evaluation threshold to warrant introduction in this manner.
The reinstatement of this tax relief would have no justifiable policy rationale and does not express a defined policy objective. Given that individuals join trade unions largely for the well-known benefits of membership, and the potential value of the relief to an individual would equate to just over €1 per week, this scheme would have little to no incentive effect on the numbers choosing to join. There is no specific market failure that needs to be addressed by such a scheme, and it would consist largely of deadweight."
Given the conclusions of the review, I have no plans to reintroduce such a relief.
I am advised by Revenue that the cost and the numbers availing of the relief prior to its abolition are available at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
The following table sets out details of the cost of the relief in the seven years immediately prior to its end.
|
Year |
Cost (€ million) |
No. of Claims |
|
2004 |
10.7 |
248,300 |
|
2005 |
11.8 |
272,100 |
|
2006 |
19.2 |
294,300 |
|
2007 |
20.7 |
316,300 |
|
2008 |
26.4 |
341,900 |
|
2009 |
26.7 |
345,800 |
|
2010 |
26 |
337,500 |
I am further advised by Revenue that these figures may not provide an accurate indicator of future costs of a new scheme and there is no other basis available to Revenue on which to estimate such costs.
116. Deputy Michael McGrath asked the Minister for Finance the number of claims management companies operating here; if they are regulated by the Central Bank; the specific regulations that cover the operation of claims management companies; the specific penalties that arise for claims management companies which engage in poor conduct; and if he will make a statement on the matter. [28372/18]
View answerI wish to clarify for the Deputy that ‘claims management companies’ are not a specific authorisation category for Central Bank of Ireland Regulated Financial Service Providers (RFSPs). Activities such as ‘loss assessing’ and ‘claims handling’ on behalf of a policyholder are considered to be regulated activities under the European Communities (Insurance Mediation) Regulations 2005 (the “IMR”). The IMR specifically excludes the management of claims when acting on behalf of an insurance company (typically referred to as “loss adjusting”).
Firms who deal with claims under insurance contracts are required to be authorised by the Central Bank as ‘insurance intermediaries’ under the IMR. Firms who undertake the management of claims on behalf of an insurance undertaking on a professional basis (i.e. loss adjusting) are not required to be authorised under the IMR.
The IMR sets out the rules for undertaking insurance mediation. “Insurance mediation” as defined under the IMR is ‘any activity involved in proposing or undertaking preparatory work for entering into insurance contracts, or of assisting in the administration and performance of insurance contracts that have been entered into (including dealing with claims under insurance contracts), but does not include such an activity that –
(a) is undertaken by an insurance undertaking or an employee of such an undertaking in the employee’s capacity as such, or
(b) involves the provision of information on an incidental basis in conjunction with some other professional activity, so long as the purpose of the activity is not to assist a person to enter into or perform an insurance contract, or
(c) involves the management of claims of an insurance undertaking on a professional basis, or
(d) involves loss adjusting or expert appraisal of claims for reinsurance undertakings.’
The IMR does not provide for sub-categorisation of authorisation type, e.g. “Loss Assessors”, there are currently 2,235 registered Insurance Intermediaries regulated by the Central Bank, who are authorised to undertake insurance mediation, which includes ‘loss assessing’ and ‘claims handling’.
The specific regulations that apply to loss assessor firms are, the IMR, the Consumer Protection Code 2012, and the Minimum Competency Standards. Both the Consumer Protection Code and the Minimum Competency Standards include specific provisions and standards applicable to such firms; for example Chapter 7 of the Consumer Protection Code deals with claims processing and Appendix 3 of the Minimum Competency Code 2017 outlines the competencies required when handling claims.
As part of its consumer protection mandate, the Central Bank challenges firms to demonstrate compliance with regulatory requirements. Any evidence of poor conduct may result in increased supervisory engagement or where appropriate, enforcement action, up to and including involuntary revocation of a regulated firm’s licence. The Central Bank’s powers derive primarily from legislation, e.g., the Central Bank Act 1942 and the Central Bank (Supervision and Enforcement) Act 2013.
117. Deputy John Brady asked the Minister for Finance if e-car charging points are provided at his Department's buildings in Dublin or in other locations; and if he will make a statement on the matter. [28395/18]
View answerThe question raised by the Deputy is a matter for response by the Office of Public Works. The OPW have prepared a co-ordinated reply.
