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Wednesday, 9 Dec 2020

Written Answers Nos. 53-77

Departmental Bodies Data

Questions (53)

Mairéad Farrell

Question:

53. Deputy Mairéad Farrell asked the Minister for Transport the bodies under the aegis of his Department; and the composition of their respective board memberships, disaggregated by appointments through the Public Appointments Service or ministerial appointments in tabular form. [42489/20]

View answer

Written answers

Since 2014, all vacancies/positions on State boards are advertised openly on the State Boards portal www.stateboards.ie operated by the Public Appointments Service (PAS). Appointments are made based on specific and detailed criteria determined by the relevant Minister as necessary for the effective performance of the relevant role, and are processed by way of a transparent assessment system designed and implemented by PAS.

Information relating to board appointments for agencies under my Department's remit and the basis of that appointment is available here on stateboards.ie and here on my Department’s website.

Electric Vehicles

Questions (54)

Robert Troy

Question:

54. Deputy Robert Troy asked the Minister for Transport if e-scooter legislation will be progressed before Christmas 2020. [42495/20]

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Written answers

I intend to bring forward the relevant provisions to amend primary legislation in relation to e-sccoters and other Powered Personal Transport devices (PPTs) when the Oireachtas is considering the Road Traffic (Miscellaneous Provisions) Bill early in the coming Oireachtas session, in accordance with the Programme for Government.  Minister Troy will, I know, share the Government's immediate priority ensuring that we are equipped with any necessary legislation, primary or secondary, to deal with Brexit and its consequences, as well as to deal with the ongoing COVID emergency.  While I hoped to bring the Bill to Government before the end of this year for approval to publish, these pressing challenges must take priority.

The task of adapting our extensive body of road traffic legislation to accommodate PPTs involves identifying and developing appropriate amendments to primary legislation across a range of complex areas. The work must be carried out in such a way that it does not undermine the overall framework of Road Traffic Law or Road Safety in general. My officials are currently working on drafting the necessary changes to primary legislation. Subject to satisfactory resolution of the necessary issues, I intend to bring forward amendments to the relevant enabling primary legislation when the Road Traffic (Miscellaneous Provisions) Bill is before the Oireachtas.

Experience overseas has shown that a change of regime may have consequences for road safety, the management of roads and footpaths, the movement of traffic, public transport and goods, public health and the environment. These are all factors which must be taken into consideration when legislating.

Until new legislation is in place, the use of electric scooters will remain illegal on public roads and in public places. However, they may be used on private land with the permission of the landowner.

Aviation Industry

Questions (55)

Brendan Griffin

Question:

55. Deputy Brendan Griffin asked the Minister for Transport if his attention has been drawn to the difficulties customers are experiencing cashing refund cheques from an aviation company (details supplied); the recourse available to these customers; and if he will make a statement on the matter. [42504/20]

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Written answers

This issue has only very recently come to attention, and it has been confirmed by the Commission for Aviation Regulation (CAR) - which is our national enforcement body under Regulation (EC) 261 of 2004 - that a number of consumers have been effected. Under the Regulation, which provides for the payment of refunds to air passengers in certain circumstances, payments can be made in the form of cash, electronic bank transfer, bank order, bank cheque or - with the signed agreement of the passenger - travel vouchers and/or other services.  If an airline refunds by one of the methods listed it has legally discharged its duty under the Regulation. 

The CAR has advised that any passengers who are experiencing difficulties cashing these cheques to bring the issue to the airline's attention in the first instance. CAR has advised that it understands that  airlines are cooperating in providing an alternative payment method where possible.  It is a matter, nonetheless, that I will ensure is followed up on should it persist.

Covid-19 Pandemic

Questions (56)

Fergus O'Dowd

Question:

56. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to correspondence received (details supplied); and if he will make a statement on the matter. [42202/20]

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Written answers

The Deputy will be aware that my officials and 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 pandemic. Officials in the Department are alert to issues raised directly by the public and these inform the Department’s ongoing engagement process and policy formation.  

The Wage Subsidy Schemes are some of the main tools with which we are protecting the income of employees who otherwise would not be working and it is hoped that it will be a major boost in saving the businesses for which they work. However, whilst I acknowledges the seriousness of the issue you have raised and its impact on those affected, I cannot mandate how temporary payments received under the Wage Subsidy Schemes are treated in lending sustainability evaluations by regulators and lenders. 

The banking crisis we faced over ten years ago was fueled by unsustainable lending. There are now thankfully far firmer regulatory controls and restrictions on lenders. Speaking on this particular issue, on 7 May the Governor of the Central Bank publicly noted that if an individual borrower’s circumstances have changed such that doubt is cast over the sustainability of potential borrowing, it is in the best interests of the borrower and the bank if the situation is reviewed.  

Furthermore, as Minister for Finance, I cannot mandate or overrule the internal risk assessment processes in any bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The independence of 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. The Relationship Framework for PTSB, the bank referred to in correspondence supplied by the Deputy, can be found here: 

https://www.gov.ie/en/publication/5c6ad6-ptsb-relationship-framework-april-2015/  

Notwithstanding this, officials in the Department contacted the bank for a general comment, on a no-name basis, on how they are managing the matter you have raised and were advised of the following: 

"We have a duty of care to our customers to ensure that any lending is affordable for them. In accordance with consumer protection requirements, we are facilitating mortgage-approved customers on the EWSS in drawing down their loans subject to their employers providing assurance on the sustainability of their income when the EWSS comes to an end. We are also processing approval in principle applications from customers in receipt of the PUP and we are not excluding any sectors from applying for a loan. We are doing everything we can to support our customers at this difficult time and are working with them on a case by case basis to assess their individual situations."

Covid-19 Pandemic Supports

Questions (57, 58)

Brendan Griffin

Question:

57. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [42249/20]

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Brendan Griffin

Question:

58. Deputy Brendan Griffin asked the Minister for Finance his views on a matter regarding the Covid restrictions support scheme for a business (details supplied) in County Kerry; and if he will make a statement on the matter. [42250/20]

View answer

Written answers

I propose to take Questions Nos. 57 and 58 together.

The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health Regulations to combat the effects of the Covid-19 pandemic. It applies to businesses who, under the specific terms of the regulations, are required to prohibit or significantly restrict members of the public from accessing their business premises, with the result that the business is required to temporarily close or to operate at significantly reduced levels. Support provided under CRSS is intended to enable businesses to meet normal fixed costs associated with their business premises such as rent, insurance, utilities and so on, during the period which they are subject to such restrictions.

Domestic travel restrictions or social distancing measures are not the level of restrictions to which the CRSS refers.  To be eligible to make a claim under CRSS, the applicable restrictions should require the business to either prohibit, or significantly restrict, customers from accessing the business premises in which the relevant business activity is carried on. 

These has been an easing of restrictions on businesses, with a phased move to Level 3 restrictions nationally from 1 December, with some restrictions easing from 4 December and 18 December respectively. From 4 December, bars, cafes and restaurants which serve substantial meals prepared onsite are allowed to open for indoor dining.  A substantial meal is defined in the current public health regulations as a meal which might be expected to be served as main meal/ main course at lunch or dinner and for which it would be reasonable to charge a sum that is not less than €9.  The meal must also be substantially prepared on the premises in a “food preparation area”.  A food preparation area is defined as an indoor part of a premises which is structurally adapted and used for the purpose of preparing food for consumption by customers on or off the premises. It does not include a tent, caravan, vehicle, storage container or other temporary structure.

A pub serving substantial meals, which are prepared in a food preparation area located in the pub premises rather than ordered in from another business, was allowed to reopen on 4 December and, from that date, ceased to qualify for CRSS. However, the pub would be eligible to claim an additional week’s support under CRSS (referred to as a ‘restart week’) to assist it in meeting the costs of reopening.

Any business that can reopen without having to prohibit or significantly restrict access to their business premises, but chooses not to reopen, will not be eligible to claim under CRSS.

Pubs that do not serve substantial meals that are prepared in a food preparation area located in the premises are not allowed to reopen and, therefore, remain eligible to claim under CRSS. 

If a pub is prohibited from opening under the current public health regulations because it does not meet the criteria in relation to serving substantial meals then, I understand that it is Revenue’s view that the pub continues to qualify for CRSS.  This is regardless of whether the particular pub had put in place arrangements with a food supplier to provide meals to customers at the pub in order to open in the past.  Under the current regulations, to be allowed to open, a pub must serve substantial meals that are ‘substantially prepared’ onsite in a food preparation area – serving meals that have been prepared elsewhere does not qualify.  If a particular pub does not meet the criteria to open then it should qualify for CRSS (where the other criteria are met).

On 4 December, I announced an additional seasonal support for businesses who cannot reopen through December. Payable for a period of three weeks beginning 21 December, the additional support will provide up to double the amount of the weekly CRSS support payment due subject to the statutory maximum payment of €5,000 per week.

The CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions. Businesses who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS) and the range of measures announced as part of Budget 2021 to support  particular sectors including Tourism and live entertainment. They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable. 

Brexit Preparations

Questions (59)

Seán Sherlock

Question:

59. Deputy Sean Sherlock asked the Minister for Finance the arrangements being put in place to ensure that all sectors of society which are insured by UK and Gibraltar insurance providers will continue to offer cover beyond their current period of insurance, particularly as it relates to the bloodstock industry, leisure, hospitality and professional indemnity sectors in view of Brexit negotiations. [42281/20]

View answer

Written answers

At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses, including in the bloodstock industry, leisure, hospitality and professional indemnity sectors.  This position is reinforced by the EU framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.  Consequently, I am not in a position to direct companies as to how they price their policies or what terms and conditions apply.

With regard to the points made in relation to the withdrawal of the UK from the EU, as the Deputy will be aware, at the end of the ‘transition period’, the UK (including Gibraltar) will be a third country and will no longer be part of the EU Single Market, including for financial services.  UK/Gibraltar insurance undertakings will therefore lose their right to conduct business in Ireland by way of Freedom of Establishment (FoE) and Freedom to provide Services (FoS) under the EU regulatory framework, also known as ‘passporting’ rights.  This is a consequence of the withdrawal of the UK from the EU. 

As part of the extensive preparations for the end of the transition period, European and domestic regulatory authorities, including the Central Bank of Ireland, have instructed relevant UK/Gibraltar firms to make and implement contingency plans to ensure that they can continue to provide services to their EU customers post-Brexit.  I understand from the Central Bank that a significant majority of these undertakings have implemented such contingency plans in advance of the end of the transition period.  Therefore, these insurers should be able to continue to offer insurance business to Irish customers following the end of the transition period.

Furthermore, notwithstanding the level of contingency planning, there has been a concern that a small number of insurance undertakings and distributors will either not have completed such measures by the end of the transition period, or have made a decision not to implement them at all due to the administration and cost involved. Accordingly, the Government has dealt with this through the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020, which is currently being considered by the Oireachtas.  Part 10 of this legislation will allow any UK/Gibraltar-authorised insurance entity to continue the administration of both life and non-life insurance policies written before the end of the transition period.  This ‘run-off’ regime will apply for a period of fifteen years from the date of the end of the transition period, and be subject to a review by the Central Bank in year twelve.  It should be noted that, under this regime, no new policies or renewals are allowed to be written by UK/Gibraltar-authorised insurers unless they receive authorisation from an EU/EEA member state.

Finally, with less than four weeks left until the end of the transition period, I would urge all insurance providers who provide services to Irish consumers to finalise their readiness and contingency plans and take necessary actions in accordance with the relevant European Commission guidance.   I would also urge any consumer who have concerns about their insurance policy to contact their insurance provider, who should be able to provide them with details of arrangements to ensure continuity of service.  This includes whether the consumer can amend policies, or how the company will pay claims associated with policies, written prior to the end of the transition period.

Tax Code

Questions (60)

Eoghan Murphy

Question:

60. Deputy Eoghan Murphy asked the Minister for Finance if he will consider amending the parental gift tax exemption in order that the limit is placed on the recipient rather than that the benefactor given that children of single parents can only receive half the tax free amount of those with two parents. [42374/20]

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Written answers

Capital Acquisitions Tax (CAT) is the overall title for both gift and inheritance tax. The tax is charged on the amount gifted to, or inherited by, the beneficiary of the gift or inheritance. CAT at a rate of 33% applies on the excess over the tax-free threshold.

There are three separate Group thresholds based on the relationship of the beneficiary to the disponer.

Group A  threshold (currently €335,000) applies where the beneficiary is a child of the disponer. This includes adopted children, step children and some foster children.

Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.

Group C threshold (currently €16,250) applies in all other cases.

A fundamental principle of the Capital Acquisitions Tax regime is that inheritance or gift tax is levied on the beneficiary and that the level of taxation is determined according to their relationship with the disponer.

It is not the case that children of single parents can only receive half the tax free amount of those with two parents. A beneficiary will have access to the Group A threshold of €335,000 for all gifts and inheritances received from disponers within that group. This applies regardless of whether the gift or inheritance comes from a single parent, or from multiple “Group A” disponers. The value of gifts and inheritances received from all disponers in Group A are aggregated together and the amount over the Group A tax-free threshold (currently €335,000) will be subject to CAT, currently at a rate of 33%.

Departmental Bodies Data

Questions (61)

Mairéad Farrell

Question:

61. Deputy Mairéad Farrell asked the Minister for Finance the bodies under the aegis of his Department; and the composition of their respective board memberships, disaggregated by appointments through the Public Appointments Service or ministerial appointments in tabular form. [42478/20]

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Written answers

There are 8 State Boards under the aegis of my Department. These are the Central Bank Commission, the Credit Union Restructuring Board, the Financial Services and Pension Ombudsman, Home Building Finance Ireland, the Irish Fiscal Advisory Council, the National Asset Management Agency, the National Treasury Management Agency and the Strategic Banking Corporation of Ireland.

In addition, there are 9 bodies also under the aegis of my Department that are not classified as State Boards. These are the Office of the Comptroller and Auditor General, the Credit Review Office, the Credit Union Advisory Committee, the Disabled Drivers Medical Board of Appeal, the Investor Compensation Company DAC, Irish Bank Resolution Corporation, Irish Financial Services Appeals Tribunal, the Office of the Revenue Commissioners and the Tax Appeals Commission.

Appointments to State Boards are made in accordance with the Guidelines on Appointments to State Boards published by the Department of Public Expenditure and Reform in 2014. The Public Appointments Service provides a process to identify top quality people for consideration by Ministers for appointment to State Boards. In this regard, I would refer the Deputy to the website www.stateboards.ie.   

Details of appointments to the State Boards under the aegis of my Department are in the table below.

State Board

Board Composition

PAS Appointments

Ministerial Appointments

Central Bank Commission

Governor and 9 Commission Members (incl. 4 ex-officio members). To note: The Governor is appointed by the President of Ireland on the advice of the Government.

4

2

Credit Union Restructuring Board

The Credit Union Restructuring Board (ReBo) has been wound down since 2017 when all Board members resigned. While awaiting finalisation of legislation to formally dissolve ReBo, a caretaker board is in place consisting of 2 Department of Finance officials and a Central Bank existing nominee.

Financial Services and Pensions Ombudsman

Chair and 6 Ordinary Board Members

7

0

Home Building Finance Ireland

Chair and 6 Ordinary Board Members (including 3 ex-officio members)

4

3 ex-officio

Irish Fiscal Advisory Council

Chair and

4 Ordinary Board Members

4 (Currently 3 board members, vacancy being filled through PAS process)

1

National Asset Management Agency (NAMA)

Chair and 6 Ordinary Board Members (incl. 2 ex-offico members)(currently 2 vacancies)

3(the 2 existing vacancies will be filled via a current PAS process)

4

National Treasury Management Agency (NTMA)

Chair and 8 Members (incl. 3 ex-officio members)

3

6 (incl 3 ex officio)

Strategic Banking Corporation of Ireland

Chair and 8 Members (incl. 1 ex-officio member)

7

2 (incl 1 ex officio)

Flood Prevention Measures

Questions (62, 68, 69, 70)

Neasa Hourigan

Question:

62. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if there is a written or informal agreement between Cork City Council councillors or the executive and the OPW in respect of the Morrison’s Island public realm project and related flood defence works. [42256/20]

View answer

Neasa Hourigan

Question:

68. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if preparatory or design phase works on the Morrison’s Island public realm project and related flood defence works went through a tender process that was fully open to new applicants. [42262/20]

View answer

Neasa Hourigan

Question:

69. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the current and previous contractual relationship that exist between the Office of Public Works and the specialist consultants and architects involved in preparing method statements and technical drawings for the planning application for the Morrison’s Island flood works project. [42263/20]

View answer

Neasa Hourigan

Question:

70. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if there is a written or informal agreement between Cork City Council councillors or the executive and the OPW in respect of any future flood defence works in Cork city. [42264/20]

View answer

Written answers

I propose to take Questions Nos. 62, 68, 69 and 70 together.

The Office of Public Works (OPW) and Cork City Council have worked closely and collaboratively since the commencement of the Lower Lee Flood Relief Scheme in 2013. Both organisations, along with Cork County Council, are represented on the project Steering Committee, which was formed at the inception of the project. While this Steering Committee provides the formal arrangement for cooperation between the OPW and Cork City Council, as well as other parties involved in the Project, the development of a formal agreement is to be progressed and put in place before the Lower Lee Flood Relief Scheme is Confirmed under the Arterial Drainage Acts.

During the course of the development of the Flood Relief Scheme, the City Council commenced the Morrison’s Island Public Realm and Flood Defence Project. This project is aimed at bringing a comprehensive regeneration of this historic area through extensive public realm improvements that includes some flood defence elements.

The wider Lower Lee Flood Relief Scheme already had a strong focus on public realm and conservation, and the design team has built up relevant skillsets in these areas for the Cork City area.  Given this, and the proposal to implement some flood defence elements into the Morrison’s Island Project, the Steering Group considered that it would be an appropriate, cost-effective and expeditious approach for the same design team to lead on the design of Cork City Council’s Morrison’s Island Public Realm Project, including the preparation of method statements and technical drawings. OPW supported this arrangement and a Collateral Warranty was put in place between the three parties. A formal agreement on the proportionate funding of the project will be finalised once the project budgeting is complete.

Flood Prevention Measures

Questions (63, 64, 65)

Neasa Hourigan

Question:

63. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if a value for money review of flood defence works at Morrison’s Island has been undertaken; and if so, if the review has been published. [42257/20]

View answer

Neasa Hourigan

Question:

64. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if a value for money review been undertaken on Cork city flood defences versus a tidal barrier project with current construction costs and estimated flood risk for 2019-2020. [42258/20]

View answer

Neasa Hourigan

Question:

65. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if value for money reviews were carried out of the use of demountable flood technology temporary and non-temporary for the Cork area; and if so, if the reviews have been published. [42259/20]

View answer

Written answers

I propose to take Questions Nos. 63, 64 and 65 together.

Every flood relief scheme designed, developed and/or funded by the OPW is subject to an economic appraisal. The assessment of alternative options for any proposed scheme examines a range of concept options for all schemes, and a robust multi-criteria analysis is used to inform the selection of the final preferred option.

The option chosen must represent value for money, as well as being technically feasible and environmentally sustainable. The use of demountable flood technology in the Lower Lee Flood Relief Scheme, as with all elements of the scheme design, forms part of the final Cost Benefit Analysis of the scheme. These demountable elements have been the subject of cost estimates considered in the Cost Benefit Analysis, as indeed are the costs of the flood defences ultimately included in the Morrison’s Island Public Realm and Flood Defence Project.

Arising from the public response to the scheme exhibition, significant additional elements to the scheme design have been introduced to address public concerns. The final cost estimate will be reviewed prior to confirmation of the scheme in line with the public spending code. The Cost Benefit Analysis from the earlier public consultation stage, is available to view on the project website, https://www.floodinfo.ie/frs/en/lower-lee/home/.

The Lower Lee FRS ‘Supplementary Report on Option of Tidal Barrier’ outlines cost estimates for a tidal barrier. This report, which identifies that a tidal barrage is not cost beneficial, was published in December 2017 and is also available to view on the project website.

Flood Prevention Measures

Questions (66)

Neasa Hourigan

Question:

66. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if the OPW has undertaken a study on nature-based solutions for flooding in the Shannon basin region; and if so, if the review has been published. [42260/20]

View answer

Written answers

Under the Shannon Catchment Flood Risk Assessment and Management (CFRAM) study an assessment was undertaken of the potential for the storage of floodwaters from the Shannon River in the Bord na Móna cutover bogs.  However, it was determined that these would provide insufficient storage to provide any substantial benefits given the volumes of water involved when the Shannon is in flood.

The potential for water retention is also considered at the community-level when assessing options for a flood relief scheme.  For example, the proposals in the Flood Risk Management Plans for Athlone and Shannon Town published on www.floodinfo.ie do include storage as part of the potential solution for managing fluvial flooding.

In terms of the delivery of the Flood Risk Management Plans, the Office of Public Works will work with the Environment Protection Agency, Local Authorities and other agencies during the project-level assessments of physical works and more broadly at a catchment-level to identify any measures, such as natural water retention measures, that can have benefits for the Water Framework Directive, flood risk management and biodiversity objectives. Such measures will be included as part of the development of schemes where feasible and where potential benefits exist.

In addition, the OPW is co-funding with the EPA a major research project entitled ‘SLOWWATERS’ to examine the effectiveness of soft engineering measures in agricultural lands, and is also funding another research project to examine the ecosystem services of Irelands forests for flood protection and water quality, with a view to better understanding the effectiveness of such measures and develop pilot sites in Ireland. The OPW also provided funding to the Inishowen Rivers Trust in Donegal to investigate the use of such measures to reduce flood risk and provide co-benefits.

The OPW is co-chairing with the EPA the Working Group on Natural Water Retention Measures that is intended to identify approaches that could be used to develop integrated catchment management measures to provide benefits to multiple sectors, such as biodiversity, water quality, sediment control, as well as for flood risk reduction. This working Group involves stakeholders from a broad spectrum of sectors

Flood Prevention Measures

Questions (67)

Neasa Hourigan

Question:

67. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform if the OPW has undertaken a review of the Bandon flood works project in respect of the impact on the locality in terms of tourism, biodiversity and public amenity; and if so, if the review has been published. [42261/20]

View answer

Written answers

As an integral part of the development of the Bandon flood defence scheme, the Office of Public Works commissioned an extensive Environmental Impact Statement (EIS), which was produced at the time of the Public Exhibition of the scheme in 2012. 

The study examined the likely direct and indirect impacts of the scheme on human beings, flora and fauna, geology and soils, water, air and noise, landscape, cultural heritage, material assets and their interrelationships, and set out specific mitigation measures to offset and reduce potential environmental and natural impacts.  The full Environmental Impact Statement (EIS) is available on the project website at http://bandonfrs.ie.  Following detailed design of the scheme, OPW commissioned an addendum to the EIS to assess further possible impacts under the same headings and provided further mitigation measures. 

Prior to the Confirmation of the Scheme by the Minister for Public Expenditure and Reform (DPER), DPER commissioned an independent review of the EIS to fulfil the requirements of the relevant Environmental Regulations (European Union (Environmental Impact Assessment) Arterial Drainage Regulations 2012).  The Scheme was confirmed on the 4th of April 2016 subject to Conditions based on expert recommendations from the independent review, which included the introduction of a Schedule of Environmental Commitments based on the substantial mitigation and monitoring measures as proposed in the EIS and associated documents.  OPW has not initiated any further review of the Bandon flood works project in respect of its impacts.  However, throughout the construction phase of the Scheme, and following its substantial completion in October of this year, the measures contained in the Schedule of Environmental Commitments have been implemented. 

OPW recognises that the construction of any flood relief scheme is likely to have temporary adverse effects. OPW believes that the nett benefit for the town of now having effective flood defences in places outweighs the mitigated short term impacts. 

Over many years, Bandon has been badly affected by periodic severe flood events that greatly adversely affected the economic and general well-being of the town.  Although it will take time for the river and its environs to recover fully from the impacts, the town’s economic and social prosperity is considered to be enhanced due to having the threat of periodic flooding greatly diminished - to the 1 in 100-year flood event standard of flood protection.  In addition, scheme elements such as improvements to Bandon Bridge, the construction of a new pedestrian footbridge and other public realm enhancements have improved the fabric of the town and allow for greater enjoyment of the town for its citizens and for visitors to Bandon.

Questions Nos. 68 to 70, inclusive, answered with Question No. 62.

Flood Prevention Measures

Questions (71, 73, 74, 75, 76)

Neasa Hourigan

Question:

71. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the status of the contract between the OPW and a company (details supplied) in Cork city in respect of the original contract value related to public realm and flood defences and current estimates for work. [42265/20]

View answer

Neasa Hourigan

Question:

73. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the status of the contract between the OPW and a company (details supplied) in Cork city in respect of the original contract value related to public realm and flood defences and current estimates for work. [42267/20]

View answer

Neasa Hourigan

Question:

74. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the status of the contract between the OPW and a company (details supplied) in Cork city in respect of the original contract value related to public realm and flood defences and current estimates for work. [42268/20]

View answer

Neasa Hourigan

Question:

75. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the status of the contract between the OPW and a company (details supplied) in Cork city in respect of the original contract value related to public realm and flood defences and current estimates for work. [42269/20]

View answer

Neasa Hourigan

Question:

76. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the status of the contract between the OPW and a company (details supplied) in Cork city in respect of the original contract value related to public realm and flood defences and current estimates for work. [42270/20]

View answer

Written answers

I propose to take Questions Nos. 71 and 73 to 76, inclusive, together.

The Office of Public Works (OPW), in conjunction with Cork City Council, is currently developing the Lower Lee Flood Relief Scheme (LLFRS). The OPW appointed Arup Consulting Engineers (Design consultants), and Ryan Hanley in association with MKOS (Environmental consultants), following open tender competitions in 2013, to develop the scheme and bring it through all stages to full implementation.

Both procurements were undertaken using the Public Works Contract (PWC) Forms of Tender and Standard Conditions of Engagement. The scope of the tendered work was defined on the known requirements at tender stage, but also included the undertaking of detailed specific investigations. As is usual in these types of projects, these investigations highlighted the need for further analysis and input in respect of hydrology, hydraulic modelling, public consultations and environmental assessments. While it is acknowledged that overall expenditure will exceed the initial tender sums, such additions to the tender sum are necessary and do not render the contract materially different. It would be neither feasible nor cost effective to re-tender services once a given increase in additional work is reached, as this would cause inordinate delay, inconsistency in design evolution and unsustainable cost inefficiencies, including possible cost duplications arising. Given the nature of flood relief schemes generally, and this one in particular, the continuity and the evolving understanding of the environmental and technical detail is critical to the success and viability of this complex project. 

There is no direct contractual relationship between OPW and the Paul Hogarth Company or Alastair Coey with respect to the LLFRS as both are sub consultants to the main design consultants.

Flood Prevention Measures

Questions (72)

Neasa Hourigan

Question:

72. Deputy Neasa Hourigan asked the Minister for Public Expenditure and Reform the number of contracts related to Cork flood defence works that have been run through a restricted and or invited tender process. [42266/20]

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Written answers

Since the commencement of the Lower Lee Flood Relief Scheme, the Office of Public Works (OPW) has procured all its contracts through open competitions, with the exception of a minor competition for a Road Safety Audit, which was procured by seeking quotations from four companies, as this was well below the threshold limit for open competition.

Questions Nos. 73 to 76, inclusive, answered with Question No. 71.

Public Expenditure Policy

Questions (77)

Paul Kehoe

Question:

77. Deputy Paul Kehoe asked the Minister for Public Expenditure and Reform if a Department is able to roll over any part of its budget that is not spent during the year to the following year; and if he will make a statement on the matter. [42380/20]

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Written answers

Section 91 of the Finance Act, 2004 makes statutory provision for capital carryover of unspent capital expenditure allocations by way of deferred surrender.

Government Departments are permitted to carryover up to 10% of their capital expenditure allocations into the following year.  Carryover figures are included in the Appropriation Act at Vote level in the year from which carryover is taking place. 

The carryover amounts by subhead are shown separately in Part I and Part II of the Revised Estimates Volume (REV) for the year into which the carryover is being provided.  The Dáil also approves the carryover as part of its approval of the REV.

To allow for spending of the capital carryover amounts in the following year I, as Minister for Public Expenditure & Reform am also required to make an Order no later than 31 March of that following year determining the capital carryover amounts by subhead, consistent with the amounts included in the Appropriation Act. 

Dáil approval of the draft Ministerial Order is required before the Order can be made.  Once the order is made, the carryover amounts become a first charge against the subheads specified.  If the carryover sums are not spent in the year of carryover, they must be surrendered to the Central Fund.

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