Wednesday, 10 Oct 2012

Written Answers Nos. 44-52

Departmental Expenditure

Ceisteanna (44)

Bernard Durkan

Ceist:

44. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which his programme of savings throughout the public sector to date remains on target with particular reference to the dual and sometimes conflicting needs to cut expenditure and maintain services; if he will set out those areas which to date have achieved the best results in this regard; the areas and or sectors which require further attention; if he remains satisfied that the twin objectives of reducing public expenditure in line with budgetary and Troika requirements as entered into by his predecessors and the need to maintain frontline services continue to be achievable; and if he will make a statement on the matter. [43386/12]

Freagraí scríofa

Minister for Public Expenditure and Reform (Deputy Brendan Howlin)

The Government is making good progress on achieving all of our targets and priorities. We are bringing public expenditure back to a sustainable level and driving forward the public service reform agenda to ensure that efficiencies and reformed work practices play a full part in contributing to the overall budgetary consolidation effort. In determining policy, the Government has to take account of a wide range of often competing considerations and policy priorities while living up to its commitments by delivering on all the conditions and targets in the EU/IMF Programme by the required deadlines.

Expenditure in 2012 is being kept under close scrutiny and control, including in the context of monitoring and reporting arrangements under the EU/IMF agreement. Ireland is committed under the EU-IMF programme to reducing the overall size and costs of the public service. All Government Departments and agencies simply have to deliver better value to the public in order to reduce the deficit and protect frontline services.

This Government's commitment to reforming our entire public service while protecting front-line services can be exemplified in the publication of the Public Service Reform Plan which highlights a range of specific and time bound commitments which involve a freeing up of administrative resources, and a reprioritisation of resources generally, to ensure that services can continue to be delivered to the public in as cost effective a way as possible.

Public Sector Allowances Review

Ceisteanna (45)

Micheál Martin

Ceist:

45. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he has attended any meetings with Department Secretaries General in relation to allowances; and if he will make a statement on the matter. [42657/12]

Freagraí scríofa

Minister for Public Expenditure and Reform

I did not attend any meeting with Secretaries General of Departments, other than with the Secretary General of my own Department, in relation to the review of allowances. Interaction between all Departments and my own Department in relation to the allowances review was at official level.

Foreign Conflicts

Ceisteanna (46)

Maureen O'Sullivan

Ceist:

46. Deputy Maureen O'Sullivan asked the Tánaiste and Minister for Foreign Affairs and Trade in view of the increasingly uneven nature of fighting between the Assad regime and opposition forces, the alternative methods of intervention he will consider in order to help defend those oppressed by the Assad regime which is becoming increasingly more militarily sophisticated; the way he intends to address this imbalance through advocating non-military intervention while simultaneously calling for a complete arms embargo; if he has considered calling for an enforced no-fly zone as proposed by the French Government; and if he will make a statement on the matter. [43761/12]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

As I said in my address to the UN General Assembly on 28 September, what is happening now in Syria is an affront to humanity. The violence is indiscriminate and on an appalling scale; and it is not confined to one side. I also said that what is needed above all to stop the violence is a strong UN Security Council resolution which will authorise targeted sanctions. This must include a comprehensive arms embargo, in order to halt the flow of arms to all sides in Syria and to compel those responsible for the violence which is violating the human rights of the Syrian people to stop their reprehensible actions. That is what the Syrian people want from us, and what they have a right to expect.

There also needs to be accountability for the serious human rights abuses which are being perpetrated in Syria. To prevent further atrocities and to save lives, we need to demonstrate clearly that these abuses will not go unpunished. Ireland fully supports, therefore, the calls which have been made for the situation in Syria to be referred by the Security Council to the International Criminal Court.

UN Secretary General Ban Ki Moon has warned about the risks of further militarization of the conflict in Syria, particularly in light of last week’s appalling attack on the Turkish border town of Akcakale. I do not believe that external intervention in any form at the moment will assist those suffering under Assad’s oppressive rule or necessarily bring closer that ceasefire and end to the conflict which is so urgently needed.

Similarly, I continue to have strong doubts and concerns about proposals to establish humanitarian corridors or safe zones within Syria, given the continuing divisions within the Security Council on Syria and the absence of any Security Council resolution authorising action on behalf of the international community. Such proposals would require the deployment of large-scale resources, including enforcement mechanisms for which there is no consensus at the moment. There is also the risk that ongoing humanitarian operations would be severely compromised by attempts to establish safe zones or humanitarian corridors.

The priority for now must be to lend strong support to the mediation efforts of the UN/Arab league Joint Special Representative, Lakhdar Brahimi, in his mission to negotiate a ceasefire and to launch a political process facilitating the transition which is urgently needed in Syria. The international community must also concentrate on mobilising increased resources to deal with the worsening humanitarian situation within Syria and the region; some 1.5 million Syrians are internally displaced and an estimated 300,000 refugees have fled the violence to neighbouring countries. Ireland has already committed some €2.45 million in humanitarian assistance in response to the crisis.

Increased international pressure also needs to be applied to the Assad regime to end the violence and repression which it is inflicting on the Syrian people. The EU has been to the forefront in imposing targeted sanctions on the Assad regime and those who provide it with support. I anticipate that a further round of targeted EU sanctions may be agreed at the Foreign Affairs Council which I will attend next week in Luxembourg.

Departmental Legal Costs

Ceisteanna (47)

Barry Cowen

Ceist:

47. Deputy Barry Cowen asked the Tánaiste and Minister for Foreign Affairs and Trade the expected total legal costs to be incurred in his Department in 2012; his proposals to reduce these costs; and if he will make a statement on the matter. [44067/12]

Freagraí scríofa

Tánaiste and Minister for Foreign Affairs and Trade

It is not possible to predict legal costs with certainty in advance. However, the Department has made budgetary provision for the following:

Account Code	2012 Budgetary Provision for the department
Legal Expenses (lawyers’ fees incurred at Headquarters and at Missions abroad)	€105,500
Settlement Costs to cover matters such as personal injuries awards (excluding lawyers’ fees)	€475,000
Premises legal fees to cover property-related legal costs at HQ and at Missions	€50,000

It is anticipated that a similar level of budgetary provision will be made for 2013, but actual expenditure may differ considerably depending on events and outcomes of proceedings. The allocation for these costs is kept under review on an ongoing basis.

Litigation is dealt with on my Department’s behalf by the Chief State Solicitor’s Office and the State Claims Agency who engage lawyers to act for the Department where necessary in relation to personal injuries claims and other matters.

Legal advice on contractual and other matters arising from time to time is initially sought from the Chief State Solicitor’s Office and/or the Office of the Attorney General, and the use of external legal advisors for such requirements is kept to a minimum. Missions abroad may have to engage local legal advisers from time to time and in such cases Missions are under instruction to procure such services by competitive process in accordance with Guidelines issued by the Department of Public Expenditure and Reform.

Customs and Excise Controls

Ceisteanna (48)

Michael Healy-Rae

Ceist:

48. Deputy Michael Healy-Rae asked the Minister for Finance the number of sniffer dogs that customs and excise officers have at their disposal; and if he will make a statement on the matter. [43499/12]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners that their Customs Service currently deploys 13 detector dog teams at strategic locations throughout the country. Each team comprises a detector dog and handler. The dogs are used in the detection of drugs, tobacco and cash. Passive dogs are used as this allows for the screening of passengers as well as merchandise and baggage. The detector dog teams play an important role in delivering on Revenue’s commitments to the Supply Reduction Pillar of the Government’s National Drugs Strategy. In keeping with its commitment to the National Drug Strategy, Revenue has considerably enhanced its drug detection capability on a number of fronts and in this regard, the number of detector dog teams was increased substantially in recent years.

While the teams are primarily deployed within their Region of assignment, they are also available for deployment elsewhere, as appropriate. Revenue also ensures that its detector dog teams maintain a high public visibility at the ports, airports, postal depots and freight forwarders’ premises in which they routinely operate. The Customs detector dog teams also assist in operations carried out by An Garda Síochána, whenever requested to do so.

Approval has been given for the assignment of two additional detector dog teams, trained to scent tobacco and tobacco/cash. These additional teams are currently in training and they are expected to be operational in December 2012.

Tax Forms

Ceisteanna (49)

Jack Wall

Ceist:

49. Deputy Jack Wall asked the Minister for Finance the position regarding a P45 form in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [43513/12]

Freagraí scríofa

Minister for Finance

I have been advised by the Revenue Commissioners that a Form P60, rather than form P45, has issued to the person concerned for 2011 in respect of the relevant employment. The Revenue Commissioners have contacted the person concerned, who has confirmed that he has the P60, and explained to him that the P60 is sufficient for Social Protection and Revenue purposes.

Liquor Licensing Laws

Ceisteanna (50)

Michael Healy-Rae

Ceist:

50. Deputy Michael Healy-Rae asked the Minister for Finance the reason there is a standardised price for a wine licence whether the store is large or very small; and if he will make a statement on the matter. [43547/12]

Freagraí scríofa

Minister for Finance

The Deputy will be aware the rate of excise duty on off-licences was reviewed in the context of the 2008 and 2009 Budgets. The annual excise duty payable on each off-licence was increased from €250 to €500. An off-licence for a shop selling only wine costs €500. An off-licence selling the full range of alcohol products require three licences - spirits, beer and wine. Consequently, outlets who wish to sell wine, beer and spirits must obtain Retailers Off Licences which cost €1,500 per annum. It is the general practice that excise duty on licences to trade are set at one rate and do not differentiate based on the volume or quantity of activity undertaken by the holder of the licence, except in the case of licences for public houses.

Mortgage Interest Rates Issues

Ceisteanna (51)

Michael Healy-Rae

Ceist:

51. Deputy Michael Healy-Rae asked the Minister for Finance in view of the fact that Allied Irish Bank have received more than €20 billion from the State and in effect is owned by the people and now the bank has increased its mortgage rates not once, but twice in recent times, and 70,000 AIB variable rate customers must pay a further 0.5 percent on their mortgages, if he will intervene in view of the fact that one tenth of AIB mortgage customers are already 90 days or more behind on their repayments; and if he will make a statement on the matter. [43580/12]

Freagraí scríofa

Minister for Finance

The Deputy will be aware that the Bank’s policy in relation to interest rates is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF.

However, the Government is aware of the significant difficulties some homeowners are facing in meeting their mortgage obligations and it is committed to advancing appropriate measures to assist those mortgage holders who are experiencing real and genuine difficulty. In this regard, the Government is now actively implementing the main recommendations contained in the report of the Inter-Departmental Working Group on Mortgage Arrears.

A number of significant milestones have now been achieved:

- The Personal Insolvency Bill was approved by Government and published last June and the Committee stage of the Bill was passed by the Dáil last month;

- The Minister for Housing and Planning has formally launched the “mortgage to rent” scheme on a nationwide basis;

- Lenders have now provided details to the Central Bank on their proposed forbearance and loan modification options and some forbearance measures have been introduced on a pilot basis with a further roll out later in the year;

- Also an extensive independent mortgage advice framework has now been put in place by the Minister of Social Protection comprising (i) an enhanced website www.keepingyourhome.ie, (ii) a Mortgage Arrears information helpline, and (iii) the provision of free independent ‘one-to-one’ professional financial advice to borrowers when considering a long term forbearance/resolution offer from their lender. The list of accountants providing this service is located on the www.keepingyourhome.ie website.

The Government remains very committed to progressing these measures, which are in addition to existing supports such as the protections afforded by the Central Bank Code of Conduct on Mortgage Arrears, to assist genuine mortgage holders in difficulty and the Government sub-committee on mortgage arrears, which is chaired by An Taoiseach, continues to meet to ensure this receives priority attention across relevant Departments and agencies.

Tax Code

Ceisteanna (52)

Michael Healy-Rae

Ceist:

52. Deputy Michael Healy-Rae asked the Minister for Finance if he will respond to the queries raised in correspondence (details supplied); and if he will make a statement on the matter. [43595/12]

Freagraí scríofa

Minister for Finance

As I indicated in my reply to the Deputy’s Question No. 40466/12 of 25 September 2012, the Finance Act 2011 provides for the taxation of bets that remote bookmakers enter into with persons in the State: the existing betting duty of 1 per cent of turnover will apply to such bets. The Act also provides for the taxation of betting exchanges at a rate of 15 per cent on the commission charged by exchanges to customers. In addition, excise duties are being applied to the granting and renewal of remote bookmakers’ and remote betting intermediaries’ licences. Bringing remote operators within the betting tax net represents significant progress in creating a more level playing field in the sector. In relation to the question concerning named betting exchanges, the Deputy should be aware that the Revenue Commissioners do not comment on the tax affairs of individual taxpayers. However, I am advised by the Revenue Commissioners that currently the commission charged to customers by betting exchanges established in the State is subject to VAT at the standard rate of 23%.

The Finance Act 2011 provides for an exemption from VAT for activities subject to betting intermediary duty. Currently, bets that are subject to excise duty imposed by section 67 of the Finance Act 2002 are exempt from VAT. These provisions are compatible with Article 135(1)(i) of the VAT Directive (2006/112/EC).

The coming into operation of betting intermediary duty and the exemption from VAT are subject to Ministerial Commencement orders. The making of those orders will follow the enactment of the proposed Betting (Amendment) Bill.

Universal Social Charge Payments

Ceisteanna (53)

Éamon Ó Cuív

Ceist:

53. Deputy Éamon Ó Cuív asked the Minister for Finance if the universal social charge was deductible in 2011 from all income; if there is an exemption from USC in 2012 if a person's income is under €10,036; and if he will make a statement on the matter. [43664/12]

Freagraí scríofa

Minister for Finance

The Universal Social Charge (USC) was introduced in Budget 2011 and came into effect on 1 January 2011. It replaced the Income Levy and Health Levy. It is a charge payable on gross income, including notional pay, after any relief for certain trading losses and capital allowances but before pensions contributions.

An individual whose total income does not exceed €10,036 in 2012 (€4,004 in 2011) is exempt from USC. Furthermore, Department of Social Protection (DSP) payments are also exempt along with income already subjected to Deposit Interest Retention Tax (DIRT).

Where an individual's total income exceeds the annual threshold of €10,036 per annum, all income is subject to USC. In this way the rates of USC are progressive.

It should be noted that a lower rate of USC applies to individuals aged 70 years or over and also to full medical cards holders. This is a transitional measure which will be in place until end 2014, after which the standard rates of USC will apply to those aged 70 years or over and also to full medical card holders. Full details regarding the USC can be obtained on the Revenue Commissioners website at the following link http://www.revenue.ie/en/tax/usc/index.html

NAMA Transactions

Ceisteanna (54)

Pearse Doherty

Ceist:

54. Deputy Pearse Doherty asked the Minister for Finance in respect of a site at 66, 68 and 70 Dublin street, Balbriggan, North County Dublin if the National Asset Management Agency has been contacted by the Minister for Health or his Department or his representatives or the Health Service Executive, and if there has been such contact on the subject of this site, the date of the contract or contacts; the identity of the person or persons making the contact or contacts and the nature of the contact or contacts. [43749/12]

Freagraí scríofa

Minister for Finance

I am advised by the National Asset Management Agency (NAMA) that information relating to its debtors and properties within their control is, within the meaning of Sections 99 and 202 of the NAMA Act 2009, confidential and that it is therefore precluded from discussing such matters.

NAMA Code of Conduct

Ceisteanna (55)

Pearse Doherty

Ceist:

55. Deputy Pearse Doherty asked the Minister for Finance if, pursuant to the anti-lobbying rules set out in Section 221 of the National Asset Management Agency Act 2009, NAMA would be duty-bound to report to An Garda Síochána contact from a Minister or his Department or his representatives, which sought to promote a property subject to a loan from NAMA or contact which sought to influence a decision by NAMA. [43750/12]

Freagraí scríofa

Minister for Finance

Under Section 221 of the National Asset Management Act (NAMA), it is an offence to communicate with NAMA with the intention of influencing the making of a decision in relation to the performance of its functions. If such an attempt were to be made, the Act imposes an obligation on an officer or Board member of NAMA to report it to a member of the Garda Síochána. I am satisfied that NAMA officers and Board members would fulfil their legal obligations in the event that they were subject to representations which were in breach of Section 221.

NAMA Debtor Agreements

Ceisteanna (56)

Pearse Doherty

Ceist:

56. Deputy Pearse Doherty asked the Minister for Finance if he will confirm that details of loans managed by the National Asset Management Agency and its debtors are confidential, and that in relation to any specific NAMA debtor, details of the sums outstanding on loans and the value of collateral and specifically if the sums outstanding on loans are greater than the value of collateral, are not details that are publicly available, or which would be provided by NAMA to a Minister. [43751/12]

Freagraí scríofa

Minister for Finance

I am advised by the National Asset Management Agency (NAMA) that information relating to its debtors and to properties within their control is, within the meaning of Sections 99 and 202 of the NAMA Act 2009, confidential and that it is therefore precluded from disclosing such information to third parties. In the case of property under the control of debtors, NAMA is precluded, under Section 202 of the NAMA Act, from disclosing confidential information.

Confidential information is specifically defined to include information relating to debtors. Furthermore, Section 99 of the Act provides that, on acquisition of a loan, NAMA takes over the obligations of the participating institutions under the loan, one of which is the contractual duty of confidentiality which the debtor enjoyed while still a customer of the participating institution. Information about debtors or their properties is also protected against disclosure by the Data Protection Act, which NAMA must comply with as data controller.

Departmental Legal Costs

Ceisteanna (57)

Barry Cowen

Ceist:

57. Deputy Barry Cowen asked the Minister for Finance the expected total legal costs to be incurred in his Department in 2012; his proposals to reduce these costs; and if he will make a statement on the matter. [44066/12]

Freagraí scríofa

Minister for Finance

My Department has a budget of €6.6m for Consultancy & Other Costs in 2012, which includes costs relating to the provision of legal advice. The actual outturn is expected to be substantially less than this figure because of the ongoing focus on managing these contracts, negotiating reductions and ensuring value for money. Current expectations are that the year end cost of legal services/advice will be in the region of €4.2m. Every effort is made to minimise these costs but the requirement for specialist advice will be dictated by issues arising in the market and costs will vary accordingly.

FÁS Training Programmes

Ceisteanna (58)

Dara Calleary

Ceist:

58. Deputy Dara Calleary asked the Minister for Education and Skills the level of FAS funding, if any, available to unemployed persons enrolling on City and Guild approved courses; the criteria used in the application process; and if he will make a statement on the matter. [43555/12]

Freagraí scríofa

Minister of State at the Department of Education and Skills

FÁS Training Services provides training courses that are accredited by various bodies, including City and Guilds.

However, "FÁS" Employment Services which is under the remit of the Department of Social Protection does make grants available to unemployed persons to enrol on courses. One such grant is the Technical Employment Support Grant and the Department of Social Protection would be best placed to advise on the application process as this particular grant is under their remit.

Youthreach Programme

Ceisteanna (59)

Dominic Hannigan

Ceist:

59. Deputy Dominic Hannigan asked the Minister for Education and Skills if a person who is working for Youthreach moves from a part time contract to full time should they be classified as a new entrant for the purpose of the full time contract; and if he will make a statement on the matter. [43567/12]

Freagraí scríofa

Minister of State at the Department of Education and Skills

As part of Budget 20111 the Government applied a 10% reduction in the pay rates applicable to persons recruited to certain direct entry grades in the Public Service with effect from 1 January 2011.

This applies to all direct entry grades where the person has not served in an analogous grade, role or position in a previous public service employment before 1 January 2011, whether that employment was permanent or temporary.

If the person referred to by the Deputy is being appointed to a direct entry grade and has not previously served in an analogous grade then they must be classified as a new entrant for this post.

Further Education and Training Programmes Eligibility

Ceisteanna (60)

Peter Mathews

Ceist:

60. Deputy Peter Mathews asked the Minister for Education and Skills if a person (details supplied) in Dublin 16 is eligible for the spring board programme; and if he will make a statement on the matter. [43583/12]

Freagraí scríofa

Minister for Education and Skills

Springboard is a specific initiative that strategically targets funding of free part time higher education courses for unemployed people in areas where there are identified labour market skills shortages or employment opportunities.

To be eligible for a place on a Springboard course a person must be unemployed, actively seeking employment, and be in receipt of one of the qualifying payments from the Department of Social Protection or be signing for credits or be previously self employed. A person in employment at the time a Springboard course commences is not eligible for support under the scheme.

Students who wish to undertake higher education courses of study on a part time basis outside of the Springboard programme may be eligible for tax relief on their tuition fees. Information on available tax reliefs for tuition fees can be accessed on www.revenue.ie. It is also open to any individual to apply for a place on a full time undergraduate or postgraduate programme in the publicly funded higher education sector and, depending on their previous level of educational attainment and personal circumstances, they may be eligible for support under the Free Fees Scheme or the Student Grant Scheme. Full details of the supports available to students who wish to return to education are available at www.studentfinance.ie.

The person in question may also wish to consider contacting her local FÁS Employment Services Office to discuss the possible training and further education options available to her. In addition she may wish to consider contacting Skillnets who provide training opportunities to unemployed people as well as those in employment. Further information is available on www.skillnets.ie.

Broadband Services Provision

Ceisteanna (61)

Dominic Hannigan

Ceist:

61. Deputy Dominic Hannigan asked the Minister for Education and Skills when a school (details supplied) can expect to have their new dsl line installed; and if he will make a statement on the matter. [43535/12]

Freagraí scríofa

Minister for Education and Skills

Under the Schools Broadband Access Programme the Department provides for the supply of internet connectivity for all primary schools that wish to avail of this service. All contracts under the Schools Broadband Access Programme were recently re-tendered. As a result of this the number of service providers has been expanded from 6 to 13 and this should lead to improvements in the quality of services available to schools. These contracts were signed in the last two months and the migration of schools onto the new services is currently under way.

The DSL order for Scoil Náisiúnta Ultain Naofa 17203I was placed on the 5th of October, it is expected that the connection will be in place by the 18th of October.