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Tuesday, 16 Jun 2020

Written Answers Nos. 126-150

Tax Data

Questions (126)

Gerald Nash

Question:

126. Deputy Ged Nash asked the Minister for Finance the estimated revenue that would be raised by equalising duty on petrol and diesel to the higher rate over a three year period; and if he will make a statement on the matter. [11470/20]

View answer

Written answers

I am advised by Revenue that if the diesel rate was increased in equal amounts over a three-year period, the overall additional receipts that would be raised over that period are estimated at €792 million as set out in the following table:

 -

€m

Year 1

132

Year 2

264

Year 3

396

Total

792

Tax Data

Questions (127)

Gerald Nash

Question:

127. Deputy Ged Nash asked the Minister for Finance the estimated revenue that would be raised by equalising the electricity tax rates for business and non-business customers; and if he will make a statement on the matter. [11471/20]

View answer

Written answers

In line with the recommendation of the 2019 Climate Action Plan, I equalised the rates of electricity tax for business and non-business customers in Budget 2020.  

At that time, it was estimated that the additional revenue arising from this measure would be some €2.5 million.   It is not possible at this time to state the potential impact of Covid-19 on the 2020 yield.

Banking Sector

Questions (128)

Catherine Murphy

Question:

128. Deputy Catherine Murphy asked the Minister for Finance if he will engage with a bank (details supplied) in respect of persons who availed of a three-month mortgage break who are now being charged fees of over €1,000 in view of the 75% stake in the bank of the State; if he will address this issue with other banks the State has a shareholding in which are charging customers for the three-month break; and if he will make a statement on the matter. [11485/20]

View answer

Written answers

As the Deputy is aware, I have engaged and will continue to engage extensively with the Banking and Payments Federation (BPFI) and the banks directly in relation to supports for personal and business customers affected by the COVID-19 crisis. Furthermore, officials in my Department are alert to issues raised directly by the public and these inform the Department’s ongoing engagement process and policy formation. All the banks, PTSB included, have continued to evolve and expand the supports they have available and I would expect that this process will continue.

PTSB has introduced a wide variety of solutions designed to help both personal and business customers affected by the COVID-19 crisis including mortgage break and cash flow supports for businesses.

In relation to payment breaks, the Central Bank of Ireland (CBI) has provided information for consumers in its Covid-19 Consumer FAQ section, including the following:

“When you agree a payment break with your lender, it is essential that they explain how the break will affect your loan (including on the overall cost and revised monthly repayments). For example, your lender may spread your repayments over the remaining term of the mortgage/loan, to allow you to repay it within the original term. This means that you will have to pay higher repayments (spread out) over the remaining term of the loan. Alternatively, your lender may offer you the option to extend the term of the loan by the length of the payment break. This spreads your repayments over a longer period. Both options mean your loan will cost you more overall. Your lender should let you know what the additional costs are likely to be.”

The full CBI Covid-19 Consumer FAQ section can be found at the following link:

https://www.centralbank.ie/consumer-hub/covid-19/faq-for-consumers .

Notwithstanding the above, it is important that I highlight for the Deputy that as Minister for Finance, I am precluded from intervening in how PTSB manages its day-to-day business and relationship with any of its customers.  Decisions in this regard are solely the responsibility of the board and management of the bank which must be run on an independent and commercial basis. The independence of the banks in which the State has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.

Question No. 129 answered with Question No. 74.

Covid-19 Pandemic Supports

Questions (130)

Marian Harkin

Question:

130. Deputy Marian Harkin asked the Minister for Finance if workers employed by organisations funded by Pobal can avail of the temporary wage subsidy scheme; if not, the reason for the decision; and if he will make a statement on the matter. [11488/20]

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Written answers

The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the objective of getting financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.

The TWSS applies where the employer demonstrates to Revenue’s satisfaction that, by reason of Covid-19 and the resultant disruption to the conduct of business, commerce, there will occur in the period 14 March 2020 to 30 June 2020 at least a 25 per cent reduction either in the turnover of the employer’s business or in customer orders being received by the employer.  The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continued to operate and employ their workforce.

A key eligibility criterion for the scheme requires the employer must make a declaration which states that, based on reasonable projections, as a result of disruption to the business caused or to be caused by the Covid-19 pandemic, there will be a decline of at least 25% in the future turnover of, or customer orders for, the business for the duration of the pandemic and that as a result the employer cannot pay normal wages and outgoings fully but nonetheless wants to retain its employees on the payroll.  In the case of an employer that is funded by Pobal, the State funding of the employer must be taken into account for the purposes of determining the turnover of the business.  If that turnover meets the “the minimum 25% reduction test”, then the organisation qualifies for the scheme; if it doesn’t meet the 25% reduction test, it doesn’t qualify.

Question No. 131 answered with Question No. 89.

Small and Medium Enterprises

Questions (132)

Martin Heydon

Question:

132. Deputy Martin Heydon asked the Minister for Finance if research has been undertaken on the level of indebtedness among small and medium-sized businesses at present; and if he will make a statement on the matter. [11513/20]

View answer

Written answers

As the Deputy may be aware, the Department of Finance undertakes a biannual SME Credit Demand Survey that monitors SME credit demand and related issues.  The results from this survey have shown that the number of SMEs with no debt has increased in recent years. The latest results, in respect of the period April 2019 to September 2019, shows that 55% of SMEs surveyed reported they had no bank debt which compares to 25% of SMEs that reported having no debt in the six month period up to September 2012.  Officials in the Department are currently preparing to undertake the next iteration of the Credit Demand  survey, which will track any changes to, inter alia, credit demand and debt levels of Irish SMEs.

Banking Sector

Questions (133)

Martin Heydon

Question:

133. Deputy Martin Heydon asked the Minister for Finance the interaction his Department has had with the banks to determine the level of agreements being reached with small and medium-sized enterprises; and if he will make a statement on the matter. [11515/20]

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Written answers

As Minister for Finance, I have no statutory function in relation to the banking decisions made by individual lending institutions as these are taken by the board and management of the relevant institution. However, as the Deputy may be aware given the current COVID-19 crisis on 18 March I met with the Chief Executives of the five major retail banks and the Banking and Payments Federation of Ireland (BPFI). The banks have assured me that they are working to ensure a wide range of credit, cash flow and supply chain supports are offered to businesses who are trying to manage the pressures arising from COVID-19.

Further to this, An Taoiseach, Leo Varadkar T.D. and I, along with the Minister for Business, Enterprise & Innovation, Heather Humphreys T.D., met with the Chief Executives of the five Irish major retail banks on 11 May. The Taoiseach emphasised the important role of the banking sector in supporting the gradual re-opening of the Irish economy by ensuring a flow of credit to businesses as they begin to trade again, in line with the government’s Roadmap for Re-opening Society and Business.

We welcomed the ongoing work of the banks in helping business customers and mortgage customers impacted by COVID-19, which included the initial three month payment-breaks that allowed households and businesses to defer some of their most significant outgoings. On 30 April the members of the Banking and Payments Federation Ireland (BPFI) announced their intention to extend these payment breaks to six months for households and businesses which require it.

The Central Bank is focused on ensuring that extensions to COVID-19 related payment breaks operate in borrowers’ best interests and in line with regulatory requirements.  Payment breaks give customers the opportunity to postpone or reduce their repayments on their mortgage, personal or business loans, providing breathing space for borrowers from the severe income shock many households and businesses are experiencing.

The main concern of the Government currently is to ensure that SMEs have access to sufficient liquidity, and that access to credit for SMEs is maintained. The Government has announced a range of measures to assist companies deal with the consequences of the COVID-19 restrictions, and to ensure that they have access to sufficient liquidity, including loan schemes to assist SMEs.  On 2 May I announced a €2 billion Credit Guarantee Scheme to support COVID-19 affected business. This guarantee will give the participating lenders a high level of comfort and help them to continue to lend to SMEs that will be viable after this crisis passes but need access to credit during this difficult time.

Insurance Coverage

Questions (134)

Mary Lou McDonald

Question:

134. Deputy Mary Lou McDonald asked the Minister for Finance the actions he can take to assist a not-for-profit organisation (details supplied) to secure insurance for the project. [11522/20]

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Written answers

Let me say at the outset that I am very aware of the affordability and availability of insurance cover issues facing not-for-profit organisations, such as the one outlined in the Deputy’s question.  While I have much sympathy for the position such groups find themselves, it is important to note that neither I, nor the Central Bank of Ireland, have any influence over the pricing of insurance products, and neither can we compel any insurer operating in the Irish market to provide cover to community groups or organisations, as this is a commercial matter for insurers.  This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) 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.

Regarding the organisation in question, I understand from recent media reports that they had insurance with a UK-based insurer that operated in Ireland on a Freedom of Services basis.  This insurer indicated last year that it would withdraw from the Irish market in August 2019, although it would continue to honour existing policies after this date.  In addition, I also understand that there is an open claim against the organisation in question, which could be impacting its ability to obtain insurance cover from an alternative provider.  While I am not in a position to intervene on this matter as Minister for Finance, I would advise the organisation in question to make contact with Insurance Ireland, through their Insurance Information Service.  This Service is for those who have queries, complaints or difficulties in relation to obtaining insurance, and can be accessed via email at feedback@insuranceireland.eu .  

In conclusion, I believe that this case illustrates the continued need for the implementation of the recommendations of the Cost of Insurance Working Group’s two reports, so as to improve both insurance affordability and availability.  Of particular importance is the work of the Personal Injuries Guidelines Committee, which was formally established in April and is due to present its draft guidelines to the Judicial Council by the end of October.  I expect that more consistent award levels for personal injuries will help to reduce the cost of claims, in particular in relation to legal costs, over time as there will be less incentive to litigate, and instead use the Personal Injuries Assessment Board to settle claims. In addition, I stress the need for insurers to recognise the need to reflect any savings that result from a reduction in the cost of claims in lower prices and a broader risk appetite.  In doing so, this should increase the availability of insurance to community and not-for-profit organisations such as the one the Deputy referred to in her question.

Insurance Fraud

Questions (135)

Holly Cairns

Question:

135. Deputy Holly Cairns asked the Minister for Finance the steps he is taking to address the insurance claim culture in society which is putting small businesses under extreme financial pressure. [11547/20]

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Written answers

At the outset, I wish to acknowledge the general problems faced by many consumers, businesses, and community and voluntary groups, in relation to the cost and availability of insurance.  I believe that the vast majority of personal injury claims are genuine, and that when an individual suffers an injury as a result of another party’s negligence, then that claimant deserves to be appropriately compensated.  However, I also believe it is important to remove incentives for any individual to submit a fraudulent or exaggerated claim, and the key element in this regard is to bring the levels of damages awarded in this country more in line with those awarded in other jurisdictions. 

As you may be aware, the Cost of Insurance Working Group was established in 2016 and has produced two detailed reports with recommendations on insurance reform, much of which have been implemented.  One of its key recommendations was that there be an examination of award levels in this country compared with elsewhere.  In this respect, research was conducted by the Personal Injuries Commission (PIC), which showed that award levels for soft tissue injuries in Ireland were 4.4 times higher than in England and Wales.  This disparity in award levels is unsustainable and this gap needs to be reduced considerably.

In order to try to address this award differential, the Judicial Council Act 2019, provides for the establishment of a Personal Injuries Guidelines Committee (PIGC), which is tasked with introducing new guidelines to replace the Book of Quantum.  I can inform the Deputy that the PIGC was established on 28 April and is due to submit its first draft Personal Injuries Guidelines to the Judicial Council within six months, as per the requirements of the legislation.  While the Government cannot interfere in their deliberations due to the constitutional separation of powers, I would hope that the Guidelines will take into account the PIC’s research and can also come into operation as soon as possible following their submission to the Judicial Council.  In return for lower and more consistent award levels, insurers should significantly reduce their premium levels and broaden their risk horizons.  An increase in the use of the Personal Injuries Assessment Board as the preferred way to settle claims would also be desirable and thus assist in reducing the high costs currently associated with litigation.

I would also like to highlight other reforms that have been implemented already by the CIWG to address the issue of insurance fraud. In this regard, a key change was a number of amendments to the Civil Liability and Courts Act 2004 to make it easier for businesses and insurers to challenge cases where fraud or exaggeration is suspected.  In addition, one of the key achievements of the CIWG is increased coordination and cooperation between An Garda Síochána and the insurance industry with regard to tackling fraud.  There has also been recent successes under Operation Coatee, which targets insurance-related criminality.  In addition, the Garda Commissioner has decided for operational reasons to have insurance fraud cases investigated at divisional level, as a general rule. It is felt that this will enable a more local focus to be brought to such cases.  This approach is aligned with a general divisional-focused Garda model and the Garda National Economic Crime Bureau (GNECB) will guide divisions and provide training in the investigation of insurance fraud.

In summary, the key outstanding challenge to satisfactorily resolve the cost and availability of insurance issues facing businesses is a recalibration of award levels downwards.  If this is done and more moderate awards are applied consistently this should have a very positive impact on the cost of doing business.

Questions Nos. 136 to 138, inclusive, answered with Question No. 76.

Company Liquidations

Questions (139)

Michael McGrath

Question:

139. Deputy Michael McGrath asked the Minister for Finance when the next drawdown is expected to take place to pay outstanding claims from the liquidation of a company (details supplied); and if he will make a statement on the matter. [11581/20]

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Written answers

Setanta Insurance ("Setanta") was placed into liquidation by the Malta Financial Services Authority on 30 April 2014.  As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law.

As the Deputy is aware, neither I nor the Department of Finance have any role in the process including the making of applications to the High Court or payments.

Regarding when the next payments will be made, the Deputy will note that in accordance with the relevant legislation, there are certain steps to be completed in preparing any application to the High Court for payment from the ICF. These steps include the assessment and verification of each individual claim within the application by the State Claims Agency. There have been delays with these steps, including access to the Courts, over the past number of months due to the COVID-19 restrictions.

Officials in my Department have contacted the State Claims Agency who have confirmed that the date of the next High Court application relating to Setanta claims is 16 June 2020 and it is hoped that the payments can be made before the end of July 2020. It is understood the value of the next tranche of Setanta payments will be in the region of €8 million.

Finally any individual (or their solicitor) who has queries about their payment should contact the liquidator via phone at +353 (0)818 255 255 or via email at iesetanta@deloitte.ie.

National Debt

Questions (140)

Michael McGrath

Question:

140. Deputy Michael McGrath asked the Minister for Finance the amount of Irish debt held by the ECB under each quantitative easing scheme; the maturity of this debt; the interest paid both in money terms and in interest rate to the ECB in each year; and if he will make a statement on the matter. [11584/20]

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Written answers

I am assuming the Deputy's question refers to Irish sovereign debt. However, it should be noted that the ECB’s active asset purchase programmes also extend to the purchase of private sector assets. These purchases include covered bonds and asset-backed securities issued/originated by Irish banks, and corporate sector bonds issued by Irish non-bank corporations.

With respect to purchases of Irish sovereign debt, there are two active Eurosystem quantitative easing programmes, which involve purchases of Irish sovereign debt in the secondary market: (i) the Public Sector Purchase Programme (PSPP), and (ii) the Pandemic Emergency Purchase Programme (PEPP). Purchases under these programmes are conducted in a decentralised manner by the national central banks (NCBs) of the Eurosystem, with each NCB buying the sovereign bonds of its jurisdiction in a proportion reflecting its respective share in the ECB capital key[1], with the ECB also purchasing alongside each National Central Bank (NCB), but in smaller amounts[2] .

The Securities Market Programme is a legacy asset purchase programme, but was not a quantitative easing measure, as the liquidity created through the purchases of assets was re-absorbed by the ECB via liquidity-absorbing open market operations. While purchases are no longer conducted, there remain Irish sovereign debt holdings under this programme that are being held to maturity, and as such, some detail has been included below.

Mechanism for the sharing of monetary income

Monetary Income is the income accruing to NCBs from performing Eurosystem monetary policy operations.  The amount of each NCB’s monetary income, i.e. net income (income and expense) earned on Eurosystem monetary policy operations, is determined by measuring the actual annual income that derives from the ear-markable assets held against its liability base.

Monetary Income is shared annually, and each Eurosystem NCB receives monetary Income according to its share in the key for subscription to the ECB’s capital i.e. each Eurosystem NCB is entitled to its share in the ECB capital key.  However, if the income actually booked was higher/lower than their ECB capital key share, the reallocation process is performed with clearing and settlement done by the ECB.

The ECB is not part of the Monetary Income reallocation scheme.  The ECB earns income on monetary policy securities held, which is distributed to NCBs via the regular profit distribution rules.

Securities Markets Programme (SMP) 

Total Eurosystem SMP holdings of Irish sovereign bonds stood at €3.0 billion in book value terms as at 31 December 2019, and the holdings had an average remaining maturity of 1.6 years at that time. All purchases under the SMP are held on a shared-risk basis, which also means that all income is shared via the monetary income scheme mentioned above and redistributed amongst euro area NCBs according to their ECB capital key share. In 2019, the Central Bank of Ireland earned €53.5 million of interest income on holdings in the SMP portfolio.

Public Sector Purchase Programme (PSPP)

The securities covered by the PSPP include (i) sovereign bonds (held at own-risk) and recognised agencies, and (ii) bonds issued by international organisations and multilateral development banks located in the euro area (held with shared risk).

Total Eurosystem PSPP holdings of Irish sovereign bonds stood at €33.78 billion in book value terms as at end-May 2020, and the holdings had a weighted average maturity of 8.83 years at that time.

Under the PSPP, the majority of Irish sovereign bond purchases are conducted by the Central Bank of Ireland, as per the modalities of the programme, and are held at the Central Bank of Ireland’s own-risk. As of end-2019, the Central Bank of Ireland held €29.5 billion (market value) of Irish government bonds under the PSPP, versus total Eurosystem holdings of €32.7 billion, or circa 90% of the total purchases.

The Central Bank of Ireland earned €208.3 million of interest income on holdings of securities in the PSPP portfolio.  The fact that the Central Bank of Ireland’s holdings of Irish sovereign bonds in this portfolio are held at own-risk, means that the majority of the interest income earned on this portfolio is not subject to monetary income sharing across the Eurosystem, and ultimately contributes to the overall income of the Central Bank of Ireland, the surplus of which is payable to the Exchequer.

Pandemic Emergency Purchase Programme (PEPP)

Total Eurosystem PEPP holdings of Irish sovereign bonds stood at €3.0 billion in book value terms as at end-May 2020, and the holdings had a weighted average maturity of 7.95 years at that time.

There is no information publicly available at this point on the interest earned on purchases of public sector securities under the PEPP. However, similar to the PSPP, the majority of Irish sovereign bond purchases will be conducted by the Central Bank of Ireland, and held at own-risk.

For more information on the Asset Purchase Programmes, please see here:  https://www.ecb.europa.eu/mopo/implement/omt/html/index.en.html

For more information on the Pandemic Emergency Purchase Programme, please see here: https://www.ecb.europa.eu/mopo/implement/pepp/html/index.en.html

[1] Eurosystem capital key, which is derived from the ESCB capital key, is used as the basis of allocation for a series of important items including monetary income, banknotes in circulation and the sharing of the ECB’s profit/loss among Eurosystem NCBs. The Central Bank of Ireland’s share in the ECB capital key increased from 1.6489% to 1.6883% following the five-yearly review in 2019. (see pages 184 & 185 of the CBI’s “Annual Report 2019 and Annual Performance Statement 2019 – 2020” - for a more detailed explanation)

[2] 10% of public sector purchases are conducted by the ECB: https://www.ecb.europa.eu/ecb/legal/pdf/celex_32016d0008_en_txt2.pdf

Covid-19 Pandemic

Questions (141)

Darren O'Rourke

Question:

141. Deputy Darren O'Rourke asked the Minister for Finance if his attention has been drawn to the fact that some banks are charging interest on so-called Covid-19 mortgage breaks and that in some cases this will run into additional thousands of euro over the lifetime of a mortgage; his views on whether this is fair; the measures he is taking to stop this; and if he will make a statement on the matter. [11617/20]

View answer

Written answers

I have been advised by the Central Bank of Ireland (the Central Bank) that they have been engaging closely with regulated entities on payment breaks during the pandemic period. Payment breaks are a significant support for borrowers and provide breathing space to help them address short-term liquidity constraints due to the impact of COVID-19.

A key focus has been to ensure that regulated entities act in a way that protects the best interests of borrowers and is in line with the relevant codes and regulatory requirements. A well-established and robust consumer protection framework is in place for mortgage customers in Ireland. 

Through ongoing engagement with sector representatives and firms, the Central Bank are working to ensure that affected borrowers are supported through this unprecedented period of stress. To that effect, the Central Bank has published its expectations for payment breaks in credit unions, banks and other firms. These correspondences are available in full on the Central Bank’s website. The Central Bank has clearly stated that it is essential that regulated firms take a pro-active and consumer-centric approach to all issues arising from COVID-19, an approach which I fully support.

Of particular importance is ensuring that customers are provided with sufficient information to understand how the payment break operates, the impact on their loan repayments and cost of credit, and how their case will be treated when the payment break ends. The Central Bank have set out their expectation to industry that at the end of the agreed payment break, customers should be given options to repay the outstanding balance including (i) repaying the loan within the remaining term, or (ii) extending the term of the loan. This choice should apply for all loans, including mortgages, and the impact of the options on the overall cost of credit and monthly repayments should be fully explained to the customer. Customers should also be allowed to make reduced payments during the payment break where they wish to do so. This recognises that the borrower circumstances may differ. It is therefore important that borrowers are presented with the options and information to allow them to make choices which best suit their own circumstances.

Where borrowers continue to experience financial difficulties at the end of the payment break, supports are available through the existing consumer protection framework, for example, the Code of Conduct on Mortgage Arrears 2013. Due regard must be given to the fact that each case of financial difficulty is unique and needs to be considered on its own merits. The Central Bank will ensure that lenders are operationally ready and prepared to engage with borrowers during, or at expiry of, the six-month payment break in order to identify whether or not the borrower requires further support, and if so, to consider appropriate and sustainable solutions, as soon as possible.

Question No. 142 answered with Question No. 89.

Covid-19 Pandemic

Questions (143)

Aengus Ó Snodaigh

Question:

143. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 120 of 3 June 2020, the options available for all private and public employees to defer annual leave entitlements until later in 2020 or into 2021 (details supplied); and if he will make a statement on the matter. [10595/20]

View answer

Written answers

Guidance has been provided on this issue by my department to public service employers and is set out below.

In relation to private sector employees - this is be a matter for each individual employer and the unique contractual arrangements that are in place for their employees. It is a requirement under the Organisation of Working Time Act, 1997 that employees are facilitated to take their statutory minimum annual leave entitlement.

The COVID-19 Guidance on working arrangements and temporary assignments in the Civil and Public Service outlines frequently asked questions related to annual leave. The link to the Guidance can be found here

https://www.gov.ie/en/news/092fff-update-on-working-arrangements-and-leave-associated-with-covid-19-fo/  

Due to the outbreak of COVID-19, in March of this year, a special arrangement was put in place to allow civil servants additional time to avail of their annual leave during the 2020/21 annual leave year.

The Guidance notes that although social distancing and COVID-19 is expected to continue for some time, it is important that employees are still using their annual leave entitlement. Taking a break from work is a chance to recover from the demands of work. Regular breaks from work have been shown to reduce ill health and overall absenteeism. Managers should ensure that their team members are availing of annual leave in a way that supports well-being, and also ensures that their team is supported to take their statutory minimum entitlement.

The guidance further notes that public service employers should facilitate requests for annual leave where possible so that once the crisis passes, organisations can meet increased demand without having to cater to a large volume of annual leave requests. Section 20 (1) of the Organisation of Working Time Act provides that the times at which annual leave is granted are determined by the employer. In that regard, the employer should have regard to the opportunities for rest and recreation available to the employee but also the need for the employee to reconcile work and any family responsibilities.

In addition, the guidance notes that if an employee wishes to cancel pre-booked leave (e.g. annual leave) this may be facilitated once it is in line with the normal rules applying in the relevant area of the public sector. Flexibility during this time, from both employers and employees, is advisable. This flexibility should be based on the individual circumstances of each case, with regard to balancing the needs of the business and the employees.

Covid-19 Pandemic

Questions (144)

Patricia Ryan

Question:

144. Deputy Patricia Ryan asked the Minister for Public Expenditure and Reform if a trial of a four-day working week will be introduced on a voluntary basis in Departments; and if he will make a statement on the matter. [10606/20]

View answer

Written answers

The national campaign for a 4 day week relates to a significant change to working time in Ireland for the entire workforce in both the public and private sectors. In terms of introducing a four day week in the civil and public service there are significant considerations to be taken account of including potential impacts on service provision to the public and any additional costs to the Exchequer.

It is worth noting that the Civil Service is a leading employer in the field of flexible working. Approximately 17% of the Civil Service workforce avail of flexible work arrangements which includes work-sharing patterns and the shorter worker year scheme.

Office of Public Works

Questions (145)

Frank Feighan

Question:

145. Deputy Frankie Feighan asked the Minister for Public Expenditure and Reform the amount of funding spent to date by the Office of Public Works on acquiring and servicing lands in Caltragh, Sligo town, to accommodate the construction of a new Garda regional headquarters in Sligo, including legal fees, site acquisition, advertising and other associated costs; and if he will make a statement on the matter. [10739/20]

View answer

Written answers

In early 2017 the Office of Public Works (OPW) advertised in national and local newspapers for suitable sites for the construction of a new Garda Station in Sligo, the cost of these advertisements was €971.08 ex. VAT.

In May 2018 the OPW purchased the lands in question for the sum of €1.35m. 

The OPW subsequently secured the property by erecting fencing, removed trees etc., the cost involved was €25,400 ex. VAT.

No further costs have been incurred in the acquiring or servicing of these lands.

Lease Agreements

Questions (146)

Brendan Griffin

Question:

146. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if an indenture of lease can be provided in respect of a property (details supplied) in County Kerry; and if he will make a statement on the matter. [10967/20]

View answer

Written answers

This matter has recently come to the attention of this Office and has been referred to the Chief State Solicitor’s Office(CSSO) for advice.

It falls into a broad category of cases whereby there was an initial error in mapping or conveyancing of the property resulting in the property, or part thereof, not being properly transferred from the construction company to the new owner. If the construction company is subsequently dissolved the property it held at the time of its dissolution may vest in the Minister for Public Expenditure and Reform under the State Property Act, 1954.

The Minister has limited powers under the Act, but one of those powers is a waiver of his interests in the property. The exercise of this power can only be considered after it has been demonstrated that title to the property was held, at the time of dissolution, by the dissolved company. In addition, Section 28 of the Act states that property held in trust for another does not vest in the Minister.  

The advice of the CSSO has been requested and the matter will be considered to see what next steps are possible and appropriate.

Departmental Expenditure

Questions (147)

Barry Cowen

Question:

147. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the expected net voted, gross voted and non-voted expenditure by Department for each month of 2020, in tabular form based on the revised estimates published in December 2019; and if he will make a statement on the matter. [10637/20]

View answer

Written answers

Tables 1 - 3 and 4 – 6 in the attached appendix set out the monthly profiles for gross and net voted expenditure, respectively. These voted expenditure profiles for 2020 are based on the Revised Estimates for Public Services (REV) 2020 published in December 2019, and as such, do not reflect the additional expenditure that has been allocated in response to the Covid-19 crisis. For this reason, actual spend to date has differed significantly from the REV profiles, particularly in Health and Employment Affairs and Social Protection.

Tables

Office of Public Works

Questions (148)

Thomas Pringle

Question:

148. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform the property name, location, Departments and organisations that are the tenants in which a discretionary rent reduction has been sought from the landlords (details supplied); and if he will make a statement on the matter. [10699/20]

View answer

Written answers

The Commissioners of Public Works have in excess of 300 leases for the provision of office accommodation for the various Government Departments and their Agencies.  The rent payable is governed by the agreed terms of each individual lease agreement.  The Commissioners have continued to pay the rents due in accordance with their legal obligations under these leases during the COVID 19 pandemic.

The Commissioners are not in a position to comment on lease agreements that may be held by other Public Service bodies.

Covid-19 Pandemic

Questions (149)

Dara Calleary

Question:

149. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if a strategy is being prepared to facilitate civil servants who may wish to physically return to offices nationwide in view of the review of the Roadmap for Reopening Society and Business; and if he will make a statement on the matter. [10813/20]

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Written answers

The Return to Work Safely Protocol (“the Protocol”) was launched by the Department of Business Enterprise and Innovation on 9th May 2020 to support employers and workers across Ireland in the measures that will help to prevent the spread of COVID-19 in the workplace. The Protocol outlines the steps that all employers and workers must take in order to ensure a safe workplace.

Remote working continues throughout the five stages of the Roadmap for all employees who can do so. However, it is envisaged that the numbers of workers in the public service who will be required to attend the workplace will increase as the Roadmap progresses.

Departments and Offices across the civil service are working on the implementation of the various measures outlined in the Protocol based on their own unique set of circumstances.

Flood Relief Schemes

Questions (150)

Johnny Mythen

Question:

150. Deputy Johnny Mythen asked the Minister for Public Expenditure and Reform the status of the Enniscorthy flood relief scheme; when he will be signing off on the project; when it will be proceeding; and if a commitment, date for signature and final closure of the deal will be provided. [11058/20]

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Written answers

The Enniscorthy (River Slaney) flood defence scheme is being progressed by Wexford County Council on behalf of the Commissioners of Public Works as a scheme under the Arterial Drainage Acts 1945 and 1995.  This is a significant scheme within the Office of Public Works €1 billion flood relief investment programme, and on completion will protect 236 properties in the town.

The Scheme requires formal confirmation to proceed from the Minister for Public Expenditure and Reform (MPER). This is a statutory requirement under the Arterial Drainage Acts, which now, under the recent European Union (Environmental Impact Assessment) (Arterial Drainage) Regulations 2019, also requires the MPER to carry out an Environmental Impact Assessment (EIA) of the proposed Scheme.  This will involve, inter alia, a formal review by MPER of the Environmental Impact Assessment Report (EIAR) prepared by the Commissioners and recently submitted (along with a Natura Impact Statement) to the MPER as part of the formal confirmation process.  

In order to assist the MPER in making an informed decision to consent to the scheme, the EIA will require appropriate assessment, as required under the 2019 regulations, public consultation for a period of 30 days and a detailed technical review of the scheme by environmental consultants appointed by the MPER. 

I am advised that the current position on the confirmation process is that a request for tender of services for environmental consultants is currently being progressed by the Department of Public Expenditure and Reform (DPER). The public consultation phase is also due to be commenced by DPER shortly.   DPER will progress the formal confirmation process, having due regard to the detailed requirements of the 2019 regulations. It is not possible at this point in the process to provide specific dates as requested, given that there is always a possibility that further information/revision of the scheme’s design may be required, as provided for under the confirmation process. It should be noted that DPER is also progressing confirmation of two other significant flood defence schemes for the Glashaboy and Bride Rivers in Co. Cork, both of which were submitted prior to the Enniscorthy scheme.

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